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COMPREHENSIVE ANNUAL FINANCIAL REPORT
WASHINGTON COUNTY, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2019
DIVISION OF LOCAL GOVERNMENT AUDIT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
WASHINGTON COUNTY, TENNESSEE
FOR THE YEAR ENDED JUNE 30, 2019
COMPTROLLER OF THE TREASURY JUSTIN P. WILSON
DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE
Director
MARK TREECE, CPA, CGFM Audit Manager PRESTON COBB, CPA
PAULA KNIGHT MARIE TIDWELL, CPA BRANDON HAMMES ROBERT ANDERSON, CPA, CGFM GREG BRUSH, CISA Senior Auditors State Auditors
Mitch Meredith, CPA, Director of Accounts and Budgets
This financial report is available at www.comptroller.tn.gov
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Exhibit Page(s)
Summary of Audit Findings 6
INTRODUCTORY SECTION 7
Letter of Transmittal 8-10GFOA Certificate of Achievement for FY18 Report 11Organization Chart 12Washington County Officials 13
FINANCIAL SECTION 14
Independent Auditor's Report 15-17Management Discussion and Analysis 18-26BASIC FINANCIAL STATEMENTS: 27
Government-wide Financial Statements:Statement of Net Position A 28-30Statement of Activities B 31-32
Fund Financial Statements:Governmental Funds:
Balance Sheet C-1 33-35Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position C-2 36Statement of Revenues, Expenditures, and Changes in
Fund Balances C-3 37-38Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 39
Statements of Revenues, Expenditures, and Changes in FundBalances – Actual (Budgetary Basis) and Budget:
General Fund C-5 40-43Highway/Public Works Fund C-6 44-45
Proprietary Fund:Statement of Net Position D-1 46Statement of Revenues, Expenses, and Changes in Net Position D-2 47Statement of Cash Flows D-3 48
Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E 49
Index and Notes to the Financial Statements 50-134REQUIRED SUPPLEMENTARY INFORMATION: 135
Schedule of Changes in Net Pension Liability (Asset) and Related RatiosBased on Participation in the Public Employee Pension Planof TCRS – Primary Government F-1 136
Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Primary Government F-2 137
Schedule of Contributions Based on Participation in the TeacherRetirement Plan of TCRS – Discretely Presented WashingtonCounty School Department F-3 138
Schedule of Contributions Based on Participation in the TeacherLegacy Pension Plan of TCRS – Discretely Presented WashingtonCounty School Department F-4 139
Schedule of Proportionate Share of the Net Pension Liability (Asset) in theTeacher Pension Plan of TCRS – Discretely PresentedWashington County School Department F-5 140
TABLE OF CONTENTSWASHINGTON COUNTY, TENNESSEE
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Exhibit Page(s)
Schedule of Proportionate Share of the Net Pension Liability (Asset) in theTeacher Legacy Pension Plan of TCRS – Discretely PresentedWashington County School Department F-6 141
Schedule of Changes in the Total OPEB Liability and Related RatiosSelf-Insured Plan - Primary Government F-7 142
Schedule of Changes in the Total OPEB Liability and Related RatiosLocal Education Plan - Discretely Presented Washington County School Department F-8 143
Notes to the Required Supplementary Information 144COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES: 145Nonmajor Governmental Funds: 146
Combining Balance Sheet G-1 147-148Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances G-2 149-150Schedules of Revenues, Expenditures, and Changes in Fund
Balances – Actual (Budgetary Basis) and Budget:Solid Waste/Sanitation Fund G-3 151Drug Control Fund G-4 152Rural Debt Service Fund G-5 153
Major Governmental Funds: 154Schedule of Revenues, Expenditures, and Changes in Fund
Balance – Actual (Budgetary Basis) and Budget:General Debt Service Fund H-1 155General Capital Projects Fund H-2 156
Fiduciary Funds: 157Combining Statement of Fiduciary Assets and Liabilities I-1 158-159Combining Statement of Changes in Assets and Liabilities –
All Agency Funds I-2 160-162Component Unit:
Discretely Presented Washington County School Department: 163Statement of Activities J-1 164Balance Sheet – Governmental Funds J-2 165Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position J-3 166Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds J-4 167Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Fundsto the Statement of Activities J-5 168
Combining Balance Sheet – Nonmajor Governmental Funds J-6 169Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances – Nonmajor Governmental Funds J-7 170Schedules of Revenues, Expenditures, and Changes in Fund
Balances – Actual (Budgetary Basis) and Budget:General Purpose School Fund J-8 171-172School Federal Projects Fund J-9 173Central Cafeteria Fund J-10 174
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Exhibit Page(s)
Miscellaneous Schedules: 175Schedule of Changes in Long-term Notes, Other Loans,
Bonds, and Nonexchange Financial Guarantee K-1 176-177Schedule of Long-term Debt Requirements by Year K-2 178-179Schedule of Transfers – Primary Government and Discretely
Presented Washington County School Department K-3 180Schedule of Salaries and Official Bonds of Principal Officials –
Primary Government and Discretely Presented WashingtonCounty School Department K-4 181
Schedule of Detailed Revenues – All Governmental Fund Types K-5 182-195Schedule of Detailed Revenues – All Governmental Fund Types –
Discretely Presented Washington County School Department K-6 196-198Schedule of Detailed Expenditures – All Governmental Fund Types K-7 199-224Schedule of Detailed Expenditures – All Governmental Fund Types –
Discretely Presented Washington County School Department K-8 225-235Schedule of Detailed Receipts, Disbursements, and Changes in
Cash Balances – City Agency Funds K-9 236
TableSTATISTICAL SECTION 237
Financial Trends:Net Position by Component 1 238Changes in Net Position 2 239-240Fund Balances of Governmental Funds 3 241Changes in Fund Balances of Governmental Funds 4 242-243
Revenue Capacity:Assessed Value and Actual Value of Taxable Property 5 244Direct and Overlapping Property Tax Rates 6 245Principal Property Taxpayers 7 246Property Tax Levies and Collections 8 247
Debt Capacity:Ratios of Outstanding Debt by Type 9 248Ratios of General Bonded Debt Outstanding 10 249Direct and Overlapping Governmental Activities Debt 11 250Legal Debt Margin Information 12 251
Demographic and Economic Information:Demographic and Economic Statistics 13 252Principal Employers 14 253
Operating Information:Full-time Equivalent County Government Employees by Function 15 254Operating Indicators by Function 16 255Capital Assets Statistics by Function 17 256
SINGLE AUDIT SECTION 257
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 258-259
Auditor's Report on Compliance for Each Major Federal Program; Reporton Internal Control Over Compliance; and Report on the Schedule ofExpenditures of Federal Awards Required by Uniform Guidance 260-262
Schedule of Expenditures of Federal Awards and State Grants 263-264Summary Schedule of Prior-year Findings 265Schedule of Findings and Questioned Costs 266-272Management's Corrective Action Plan 273-278Best Practice 279
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Summary of Audit FindingsComprehensive Annual Financial Report
Washington County, Tennessee For the Year Ended June 30, 2019
Scope
We have audited the basic financial statements of Washington County as of and for the year ended June 30, 2019.
Results
Our report on Washington County’s financial statements is unmodified.
Our audit resulted in six findings and recommendations, which we have reviewed with Washington 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:
OFFICES OF COUNTY MAYOR AND DIRECTOR OF ACCOUNTS AND BUDGETS
♦ The offices had deficiencies in the administration of payroll.
OFFICE OF COUNTY MAYOR
♦ The Solid Waste Office did not deposit some funds within three days of collection.
OFFICE OF DIRECTOR OF SCHOOLS
♦ Various School Department funds had deficiencies in the maintenance of payroll deductionrecords and accounts.
♦ The School Federal Projects Fund had a cash overdraft of $29,958 at June 30, 2019.♦ Unclaimed funds were not reported and paid to the state.
OFFICE OF COUNTY CLERK
♦ The office did not review its software audit logs.
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INTRODUCTORY SECTION
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William J Grandy County Mayor
Wasliington County, <Tennessee PO Box219
Jonesborough, TN 3 7659-0219
LETTER OF TRANSMITTAL
Phone: 423-753-1666 [email protected]
November 20, 2019
TO: Members of the Board of County Commissioners and the Citizens of Washington County, Tennessee
The comprehensive annual financial report of Washington County, Tennessee, for the fiscal year ended June
30, 2019, is hereby submitted. This report consists of management's representation of the finances of
Washington County. Consequently management assumes full responsibility for the completeness and
reliability of all information presented in this report. To the best of our knowledge the information is correct in
all material respects and is reported in a manner designed to present fairly the financial position and results of
operations of Washington County.
The county is required to undergo an annual audit in conformity with Government Auditing Standards and
federal "Single Audit" requirements contained in part 200 of the U.S. Code of Federal Regulations. Information
related to this single audit, including the findings and recommendations and the auditor's reports on the
internal controls and compliance with applicable laws and regulations are included as part of this report.
This report includes all funds of the county as well as all its component units. Component units are legally
separate entities for which the county is financially accountable and include the Washington County Board of
Education and the Washington County Emergency Communications District
Management's Discussion and Analysis (MD&A) immediately follows the independent auditor's report and
provides an overview and analysis of the financial statements, our capital asset and debt administration and
economic factors affecting Washington County. The MD&A supplements this letter of transmittal and should
be read in conjunction with it.
Financial Information
Management of Washington County is responsible for establishing and maintaining internal controls designed
to ensure that all assets of the county are protected from loss, theft, or misuse and that adequate accounting
data are compiled to allow for the preparation of financial statements conforming to generally accepted
accounting principles. The internal controls are designed to provide reasonable assurance that these
objectives are met. Recognizing that the cost of control should not exceed the benefits likely to be derived and
the evaluation of costs and benefits is subject to estimates and judgments of management.
As a recipient of State and Federal funding the county is also responsible for insuring that its system of internal
controls provides compliance with applicable laws and regulations related to the funding programs. As a part
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of the county's audit, tests are made to determine the adequacy of the controls including that portion relating to State and Federal programs and to determine County compliance with applicable laws and regulations.
Independent Audit
The State of Tennessee requires (TCA 9-3-211} that an annual audit be made of the accounts, financial records and transactions of all county departments. The Comptroller of the Treasury of the State of Tennessee elected to perform this year's annual audit.
Budgeting Controls
Washington County operates under the County Fiscal Procedure Law of 1957 (TCA 5-13-101} and as such is subject to the budgetary controls set forth in this act. The objective of these budgetary controls is to set forth a standard of accounting and reporting in accordance with legal provisions and government accounting standards. The budgetary controls also ensure compliance with the annual budget appropriations approved by the County Commission. The General Fund, Solid Waste Fund, Highway Fund, Special Revenue Funds, Debt Service Funds, General Purpose School Fund, and Capital Project Fund are included in the annual budget appropriations.
Profile of the Government
Policy-making and legislative authority are vested in the Board of County Commissioners consisting of twentyfive members elected from ten commission districts across the County. The Commission is responsible for, among other things, adopting resolutions, adopting the budget, establishing the tax levy, appointing committees, and confirming appointments of the County Mayor. County Commissioners are elected to a term of four years.
Operations of County Government are the responsibility of various elected and appointed County Officials including the County Mayor, Sheriff, Trustee, County Clerk, Register of Deeds, Assessor of Property, Circuit Court Clerk, Clerk and Master, Director of Schools, and the Chief Administrative Officer of the County Highway Department.
Washington County is limited in its scope and power to that granted by the Tennessee General Assembly. Therefore, the authority for any action taken by Washington County must come from within the scope of powers granted by the General Assembly, either in the form of a general law or private act.
Economic Conditions and Outlook
Washington County's retail economy experienced a modest increase in FY2019 over FY2018 of 0.3%. Sales tax
collections for July 2019 through October 2019 are up approximately 3.7%.
Property tax (ad valorem} is the primary revenue source for general county operations and provides a significant source of revenue for the county's two school systems. Therefore, changes in the county-wide assessed values are key metrics for projecting county property tax revenues. Real and personal property assessment values increased 0.77 % in calendar year 2018 as compared to 2017. Fiscal 2019 is the third year to reflect the County
Commission's $0.40 increase in the property tax rate from $1.98 to $2.38 per $100 of assessed value. The components of the increase were to place $0.31 into the County's Capital Projects Fund, $0.05 into the County's General Fund, $0.01 into the County Highway Fund and $0.03 into the County's General Purpose School Fund.
The calendar 2019 tax rate was set at $2.15. The 2019 assessed value of real and personal property tax increased approximately 11.1% over calendar 2018. The unemployment rate stood at 4.2% in June 2019 as compared to 4.3% in June 2018, 5.7% in June 2016, 6.4% in June 2015, 7.3% in June 2014, 8.1% in June 2013, 7.5% in June 2012, a high of 9.0% in June 2011, and 8.7% in January 2010. Local unemployment at fiscal yearend was slightly higher than the state average of 4.0%.
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According to the Bureau of Economic Analysis, Washington County continues to rank 11th of the 95 counties
in Tennessee with a 4.2% increase in calendar year 2018 per capita income, 2.8% increase in 2017, a 1.5%
increase in 2016 and a 4.7% gain in 2015.
The number of rural residential county building permits for FY2019 was up approximately 20.6% over FY2018.
Based on value, the increase was 22.6%. Municipal permits were down 13% in number and 18% in value for
the same period.
Healthy reserves and conservative management and budgeting have allowed Washington County to maintain
its strong financial position in 2019 and continue the current level of services for the near-term. With the fiscal
2021 budget process commencing in just a few months, the trend of slow but steady growth in our tax base
and local economy will again be reflected in conservative revenue estimates and careful scrutiny of new
spending requests.
A priority for Washington County will continue to be accelerating growth in our local economy and the tax base
through strategic investment opportunities in school facilities, retail development, public infrastructure and
other economic development initiatives that stimulate private sector investment and long-term growth in the
property and sales tax bases, create or retain jobs, and improve the quality of our workforce.
Long-term Financial Planning
Long-term financial planning for the operating budgets of Washington County will continue to be based on
conservative revenue projections, close scrutiny of new spending requests and preservation of fund balances.
Investment opportunities that stimulate growth in the tax base or private sector job creation remain high
priorities.
Long-term capital investments in new facilities and equipment or improvements to existing assets are now
provided through the Capital Projects Fund, which was created and funded in June of 2016. Capital needs are
prioritized on a rolling 10-year forecast and recurring revenue from the tax rate is allocated to provide
funding. This disciplined approach to identifying and funding the capital needs of Washington County will pay
long-term dividends in the form of stable property tax rates, meeting capital needs in a timely manner
and insuring existing assets are properly maintained and improved as required to sustain their functionality
and prevent premature and costly replacement.
Acknowledgements
The preparation of this Comprehensive Annual Financial Report (CAFR) could not have been accomplished
without the effort and dedication of the Finance Department staff, the County Officials and their staff, and the
Director of Schools and his staff. We express our sincere appreciation to each of these for their commitment to
a job well done and for serving the citizens of Washington County.
Respectfully submitted,
i/JL. William J. rand
Mayor Director of Finance & Administration
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Executive
Assistant
- Legal Services
- Contract Management
- Codes & Zoning Compliance - Convenience Centers
- Planning & Development - Recycling
- Storm Water Management
- GIS
Commissioners
Board of
Appointed
Board
Audit
Highway
County Officials
County
Attorney
Mayor
Committee
Superintendent
of Property
Circuit
Court Clerk
General Sessions
Judges
Sheriff
County Court
Clerk
Register of
Deeds
Trustee
Assessor
Election
Commission
Administration &
Finance
Purchasing
Washington County Government Organization Chart As of June 30, 2019
Development
Services
Solid Waste
Services
Risk Management
Employee Benefits
Chancery
Court Clerk
Citizens
Health
Juvenile
Emergency
Management
Homeland
Veterans
Services
Department
Detention
Security
Forensic Services /
Medical Examiner
County Archives
and Records Mgmt.
Financial Reporting
Information
Technology
Accounts and Budget
Budget Payroll Accounts Payable
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Washington County OfficialsJune 30, 2019
Officials
William Grandy, County MayorJohn Deakins, Jr., Superintendent of HighwaysWilliam Flanary, Director of SchoolsRick Storey, TrusteeScott Buckingham, Assessor of PropertyKathy Storey, County ClerkBrenda Downes, Circuit, General Sessions, and Juvenile Courts ClerkSarah Lawson, Clerk and MasterTeresa Bowman, Register of DeedsEdwin Graybeal, Jr., SheriffMitch Meredith, Director of Accounts and BudgetsWillie Shrewsbury, Purchasing Agent
Board of County Commissioners
Greg Matherly, Chairman Jodi JonesPhil Carriger Steve LightBryan Davenport Freddie MaloneDanny Edens Gary McAllisterLarry England Robbie TesterMike Ford Jim WheelerJerome Fitzgerald Suzy WilliamsKent Harris
Board of Education
Keith Ervin, Chairman Todd GangerAnnette Buchanan David HammondJason Day Phillip McLainMary Beth Dellinger Mitch MeredithChad Fleenor
Audit Committee
Freddie Malone, Chairman Lynn HodgePaige Carter Jacqui SteadmanRichard Ray
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FINANCIAL SECTION
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Independent Auditor's Report
Washington County Mayor and Board of County Commissioners Washington 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 Washington County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the county’s basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Washington County Emergency Communications District, which represent 3.8 percent, 3.1 percent, and 4.8 percent, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Washington County Emergency Communications District, is based solely on the report of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
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error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Washington County, Tennessee, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General and Highway/Public Works funds for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis; and the schedule of changes in the county’s net pension liability and related ratios, schedules of county and school contributions, schedules of school’s proportionate share of the net pension liability, and schedules of county and school changes in the total other postemployment benefits liability and related ratios, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Washington County’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service and General Capital Projects funds, combining and individual fund financial statements of the Washington County School Department (a discretely presented component unit), miscellaneous schedules, and the other information such as the introductory section, management’s corrective action plans, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is also presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200,
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Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service and General Capital Projects funds, combining and individual fund financial statements of the Washington County School Department (a discretely presented component unit), schedule of expenditures of federal awards, and miscellaneous schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service and General Capital Projects funds, combining and individual fund financial statements of the Washington County School Department (a discretely presented component unit), schedule of expenditures of federal awards, and miscellaneous schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.
The introductory section, management’s corrective action plans, and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 27, 2019, on our consideration of Washington 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 Washington 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 Washington County’s internal control over financial reporting and compliance.
Very truly yours,
Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee
November 27, 2019
JPW/tg
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WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
As management of the Washington County, Tennessee Government, we offer readers of our financial statements this narrative overview and analysis of the financial activities of the Washington County, Tennessee Government for the fiscal year ended June 30, 2019. We encourage readers to consider the information presented in this Comprehensive Annual Financial Report. This discussion and analysis focuses on the primary government and the Washington County Board of Education, a discretely presented component unit. It does not include discussion of the Washington County Emergency Communications District, another discretely presented component unit.
Financial Highlights Primary Government
• The liabilities and deferred inflows of the Washington County Primary Government exceeded itsassets and deferred outflows at the close of the most recent fiscal year by $27,664,009 (netposition). Washington County has the obligation on 100% of the debt while all the buildingsowned by the Board of Education are recorded on their books.
• The government’s total net position increased by $12,960,663 primarily as the result of increasesin capital assets, including construction-in-process on a K-8 school, and retirement of long-termdebt. The K-8 facility was transferred to the Board of Education in August 2019.
• As of the close of the current fiscal year, Washington County Government's governmental fundsreported combined ending fund balances of $40,768,148, a decrease of $10,954,584 incomparison with the prior year. The decrease was due primarily to capital expenditures forconstruction. Of the $40,768,148 of combined governmental ending fund balances, $14,574,988(35.8%) is available for spending at the government's discretion (unassigned fund balance).
• At the end of the current fiscal year, the General Fund unassigned fund balance was $14,574,988or 36% of the total General Fund expenditures.
• The county legislative body’s audit committee is independent of county management and isultimately responsible for advising management in meeting its internal control and financialresponsibilities. The committee consists of two members of the legislative body and three citizenswho have significant experience and expertise in financial, accounting and internal controlmatters. The committee regularly reviews the county’s various audit reports; meets with thecounty’s independent auditors; deliberates financial, accounting and internal control matters; and makes recommendations to the Washington County legislative body for their consideration andimplementation.
• The various budgets are reviewed by the Board of County Commissioners before a decision ismade on the tax levy. The level of reserves and the ability to raise unlimited property taxesprovide the county with significant financial flexibility for the foreseeable future.
Component Unit-School Board • The assets of the Washington County Board of Education, a component unit, exceeded its
liabilities and deferred inflows at the close of the most recent fiscal year by $81,162,411.• The Washington County Board of Education’s net position increased by $2,221,610.
Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to Washington County's basic financial statements. Washington County's basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
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WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of Washington County's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the Washington County Government's assets, liabilities and deferred inflows/outflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Washington County is improving or deteriorating.
The statement of activities presents information showing how Washington County Government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements distinguish functions of Washington County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of Washington County include general government, finance, administration of justice, public safety, public health and welfare, social, culture and recreation, agriculture and natural resources, highways, education, and interest on long term debt. The activities of the Washington County Board of Education, a discretely presented component unit, are governmental in nature while the Washington County Emergency Communications District, a discretely presented component unit are business-type activities.
The government-wide financial statements can be found on Exhibits A and B of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Washington County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of Washington County can be divided into three categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
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WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
Washington County maintains eight individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Highway Fund, General Capital Projects Fund and the General Debt Service Fund, all of which are considered to be major funds. Data from the other four governmental funds (solid waste/sanitation, drug control, constitutional officers and rural debt service) are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report.
Washington County adopts an annual appropriated budget for its General Fund and Highway Fund. A budgetary comparison statement has been provided for the general and highway funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on Exhibits C-1 through C-6 of this report.
Proprietary fund. Washington County has one proprietary fund, an internal service fund (Employee Insurance – Health Fund) to account for the county’s self-insured health programs. Because this service predominantly benefits governmental rather that business-type functions, it has been included within the governmental activities in the government-wide financial statements. The proprietary fund financial statements provide the same type of information as the government-wide financial statements but with greater detail. The basic proprietary fund financial statements can be found on Exhibits D-1 through D-3 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support Washington County's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The basic fiduciary fund financial statements can be found on Exhibit E of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately behind Exhibit E of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the progress in funding its obligation to provide pension and OPEB benefits to its employees. Required supplementary information can be found on Exhibits F-1 through F-8 of this report.
The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on Exhibits G-1 through G-5 of this report.
Financial statements for the Washington County School Board of Education are presented on Exhibits J-1 through J-10 of this report. This component unit does not issue separate financial statements.
20
WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of Washington County, combined with the Board of Education, net position was $53,498,402 at the close of the most recent fiscal year.
By far the largest portion of the net position reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. Washington County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although Washington County's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Washington County's Net PositionComponent Unit - Washington
Primary Government County Board of Education2019 2018 2019 2018
Assets Current and Other Assets $ 93,482,993 $ 108,377,477 $ 27,621,112 $ 23,384,841 Capi ta l Assets 98,207,259 81,730,214 72,792,191 77,194,810
Tota l Assets $ 191,690,252 $ 190,107,691 $ 100,413,303 $ 100,579,651Deferred Outflows of Resources Deferred Charge of Refunding $ 8,377,538 $ 9,272,473 $ 0 $ 0 Pens ion Related Deferred Outflows 3,446,730 3,723,157 6,906,454 6,980,190 OPEB Contributions Deferred Outflows 92,091 0 1,219,053 409,073 Tota l Deferred Outflows of Resources $ 11,916,359 $ 12,995,630 $ 8,125,507 $ 7,389,263Liabi l i ties Long-Term Liabi l i ties Outstanding $ 171,733,432 $ 180,612,596 $ 7,587,981 $ 7,115,746 Other Liabi l i ties 14,170,273 15,607,213 2,664,291 2,833,544
Tota l Liabi l i ties $ 185,903,705 $ 196,219,809 $ 10,252,272 $ 9,949,290Deferred Inflows of Resources Deferred Revenues - Current Property Taxes $ 42,696,182 $ 46,708,874 $ 11,705,900 $ 13,011,425 Pens ion Related Deferred Inflows 1,485,266 692,050 5,140,582 5,774,074 OPEB Contributions Deferred Inflows 1,185,467 107,260 277,645 293,324
Tota l Deferred Inflows of Resource $ 45,366,915 $ 47,508,184 $ 17,124,127 $ 19,078,823Net Pos i tion Net Investment in Capi ta l Assets $ 69,266,986 $ 53,819,927 $ 72,792,191 $ 77,194,810 External ly Restricted 13,136,355 19,447,922 4,441,724 631,460 Unrestricted (110,067,350) (113,892,521) 3,928,496 1,114,531
Tota l Net Pos i tion $ (27,664,009) $ (40,624,672) $ 81,162,411 $ 78,940,801
21
WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
The primary government's net position increased by $12,960,663 during the current fiscal year primarily due to strong tax collections, payments on long-term debt and a conservative approach to operational costs. The Board of Education’s net position increased by $2,221,610 from strong tax collections, increased state funding, and a reduction in operating expenses. Key elements of these changes are as follows:
Washington County’s Change in Net Position
Primary Government Component Unit - Washington
County Board of Education 2019 2018 2019 2018
RevenuesProgram Revenues
Charges for Services 11,216,253$ 11,567,256$ 1,572,584$ 1,505,200$ Operating Grants and Contributions 6,278,846 5,935,122 5,883,882 5,398,842 Capital Grants and Contributions 1,319,871 1,904,187 402,827 887,103
General RevenuesProperty Taxes 47,865,385 47,311,779 13,600,066 13,026,021 Other Taxes 2,726,252 2,677,186 15,708,896 15,681,149
Grants and Contributions not Restricted to Specific Programs 2,174,470 2,339,218 37,893,009 36,824,156 Other 1,010,554 301,688 320,646 185,352
Total Revenues 72,591,631 72,036,436 75,381,910 73,507,823 Expenses
General Government 7,963,052 6,210,554 - - Finance 2,949,719 2,624,752 - - Administration of Justice 4,334,215 4,559,547 - - Public Safety 21,257,958 20,594,583 - - Highway 8,384,896 8,719,597 - - Public Health and Welfare 6,122,851 6,324,577 - - Social, Cultural and Recreation 1,132,166 967,744 - - Agriculture and Natural Resources 506,131 489,132 - - Education 1,641,824 1,308,810 73,160,300 73,834,526 Interest on Long Term Debt 5,338,159 5,001,768 - -
Total Expenses 59,630,971 56,801,064 73,160,300 73,834,526
Increase (Decrease) in Net Position 12,960,663 15,235,372 2,221,610 (326,703) Net Position, Beginning (40,624,672) (54,073,175) 78,940,801 81,344,331 Restatement - (1,786,869) - (2,076,827)
Net Position, Ending (27,664,009)$ (40,624,672)$ 81,162,411$ 78,940,801$
22
WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
As noted earlier, Washington County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of Washington County's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing Washington County's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, Washington County's governmental funds reported combined ending fund balances of $40,768,148, a decrease of $10,954,584 in comparison with the prior year. Approximately 36% of the ending fund balance, or $14,574,988 constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance consists of a nonspendable portion in the amount of $20,229, a restricted portion of $18,542,146, a committed portion of $5,498,523, and an assigned portion of $2,132,262.
The General, General Debt Service, Highway, and General Capital Projects funds are reported as major funds.
The General Fund is the chief operating fund of Washington County. At the end of the current fiscal year, unassigned fund balance of the General Fund was $14,574,988, which is a decrease of $987,569 from the prior year. The nonspendable fund balance was $20,229, restricted fund balance was $571,924 and assigned fund balance was $2,132,262. There were no committed fund balances. The total fund balance was $17,299,403. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 36% of total General Fund expenditures while total fund balance represents 43% of that same amount.
The General Debt Service Fund has a total fund balance of $6,613,212, which is an increase of $1,015,309 from the prior year. The fund balance is restricted for the payment of debt service. The county levies a portion of its property tax specifically for debt service and produced total local tax revenue of $13,504,048 in the current fiscal year. This represents an increase of $2,908,078 over the prior year.
The Highway Fund has a total fund balance of $6,625,153, which is an increase of $855,303 from the prior year. The fund balance is restricted for the payment of maintenance and capital cost for the county’s approximately 973 miles of roads and bridges. The County levies a portion of its property tax specifically for Highway Fund operations and produced total local tax revenue of $5,071,513 in the current fiscal year. This represents an increase of $52,517 from the prior year.
The General Capital Projects Fund is used to account for revenues and expenditures for large capital projects. The General Capital Projects Fund has a total fund balance of $9,245,998, which is a decrease of $12,270,574 from the prior year. The primary funding for these capital projects is derived from the tax levy and the issuance of general obligation bonds and notes. The county did not issue any debt in the current fiscal year. The county also levies a portion of its property tax specifically for capital project purposes and produced total local tax revenue of $6,899,258. Other revenues (principally grant revenue and fees, fines and taxes that allocated to the various funds based on the property tax rate) amounted to $233,546. Total revenue decreased $3,920,370 from the prior year.
23
WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
General Fund Budgetary Highlights
The County Commission approved and adopted its 2019 annual operating budget in June 2018. The original General Fund operating budget was balanced through the use of $673,229 of fund balance.
During the year, the County Commission approved a total of $1,554,433 in amendments to the General Fund operating expenditures during 2019 and total amendments of $287,718 to the General Fund revenue budget.
Actual revenues were less than budget by $912,984 and actual expenditures and other financing sources were $2,335,976 less than budget for an overall positive budget variance of $1,422,992. The favorable variance in expenditures resulted from conservative spending by General Government, Constitutional Offices, Public Safety, and Public Health.
Additional information on the General Fund Budgetary Highlights may be found on Exhibit C-5 of this report.
Capital Asset and Debt Administration
Capital Assets. Washington County's investment in capital assets as of June 30, 2019 amounts to $98,207,259 (net of accumulated depreciation) and $72,792,191 for the Board of Education (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements, machinery and equipment, roads, and bridges.
Additional information on the Washington County Government's capital assets can be found in Note IV-B. of this report.
Long-term debt. At the end of the current fiscal year, Washington County had total debt outstanding of $159,718,878. Of this amount, $155,750,000 comprises debt backed by the full faith and credit of the government. The capital outlay notes of $2,560,000 are secured by the taxing power of the county as is the $1,408,878 non exchange financial guarantee. The primary government is obligated for the long-term debt related to the assets of Washington County Board of Education. Total education-related debt amounted to $125,869,809 (79%) of outstanding debt.
Washington County’s Capital Assets
Primary Government Component Unit - Washington
County Board of Education 2019 2018 2019 2018
Land 7,750,381$ 7,684,954$ 2,548,284$ 2,548,284$ Building and Improvements 48,185,903 47,780,731 126,015,339 126,000,341 Infrastructure - Roads & Bridges 52,669,675 51,900,785 - - Other Capital Assets 26,004,628 25,146,767 13,910,772 13,975,032 Construction in Progress 30,755,413 13,031,012 - -Less: Accumulated Depreciation (67,158,741) (63,814,035) (69,682,204) (65,328,847)
Total 98,207,259$ 81,730,214$ 72,792,191$ 77,194,810$
24
WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
Washington County has recorded as a long-term liability its guarantee of 22.5% of the Tri Cities Airport Authority Aerospace Park bond issue as more fully described in Note IV. F. to the Financial Statements. The Nonexchange Financial Guarantee totaled $1,408,878 at June 30, 2019, and the county is prefunding an escrow account in order to retire the county’s share of the bond guarantee within the next five years.
Since nearly all services rendered by the county are required by the state and require sizable investments in capital improvements, counties are not limited as to the amount of indebtedness [Tennessee Code Annotated (TCA) Section 9-21-103]. However, when a county's debt ratio of outstanding debt to property values exceeds the state average or a national standard recognized by firms who trade municipal bonds, the county will pay a higher interest rate or be unable to issue additional bonds.
Any county debt issuance must first be authorized by resolution adopted by the county legislative body and then approved by the state Director of Local Finance, a division of the state Comptroller of the Treasury. Before the Director of Local Finance will approve notes, the county must adopt a balanced budget, which must also be approved by this same director [TCA Section 9-21-403 to 404].
During fiscal 2019, Washington County made $6,755,000 of scheduled debt retirements on its general obligation bonds, capital outlay notes, and public building authority loan agreements.
Capital Investment Plan
Since 2016 Washington County has been funding a long range Capital Investment Plan. The plan is a formal strategy of long-term financial planning that utilizes a rolling ten year forecast of prioritized capital investment needs, estimated costs of each item and a predictable stream of revenue from which to fund the improvements. The plan establishes a systematic approach to funding capital maintenance and improvements to county-owned facilities, equipment and infrastructure in order to extend the useful life, improve functionality and minimize replacement costs. Creation of the Capital Investment Plan has also allowed the county to adopt a “pay as you go” strategy for many of the ongoing capital investment needs which will limit borrowing, minimize interest paid and provide long-term tax rate stability through disciplined budgeting of committed funding.
Major projects include construction of a $28 million K-8 school in the Boones Creek community, a $5 million multi-purpose park/athletic facility, and a $3.4 million expansion of the Washington County Industrial Park which were initiated in fiscal 2018. During the current year ending June 30, 2019, projects initiated included $640,000 in school technology capital, school roof replacements of $1.5 million, school boiler replacement of $200,000. Other future projects include replacement of the Jonesborough middle and elementary schools with a new K-8 and athletic fields at an estimated cost of $32 million, $2 million of road improvements, $4 million in general county government building improvements, $3.2 million in school technology upgrades and $4.7 million in school bus replacements over the next 5 years. Total tax and other revenues collected in fiscal year 2019 were approximately $7.1 million. The Boones Creek K-8 was completed in July of 2019 and transferred to the Board of Education in August of 2019. The park and athletic facility is expected to be completed in early fiscal 2021.
2019 2018 Increase (Decrease) General Obligation Bonds 155,750,000$ 157,790,000$ -$ (2,040,000)$ Capital Outlay Notes 2,560,000 3,125,000 - (565,000) Other Loans Payable - 4,150,000 - (4,150,000) Non Exchange Financial Guarantee 1,408,878 - 2,000,382 (591,504)
Total 159,718,878$ 165,065,000$ 2,000,382$ (7,346,504)$
Washington County’s Long-Term DebtPrimary Government
25
WASHINGTON COUNTY, TENNESSEE Management’s Discussion and Analysis
Property Tax
The property tax rate was unchanged in fiscal year 2019 from the previous year. The County Commission adopted a property tax rate for tax year 2018 (fiscal year 2019) of $2.3798 per $100 of assessed value. A summary of Washington County’s property tax rates for the past ten years can be found on Table 6 of the statistical schedules of these financial statements.
Economic Factors
• The county’s primary source of revenue is an ad valorem tax on the assessed value of real andtangible property located within the geographic boundary of the county. The assessed value ofthe real and personal property tax base increased 0.77 % in fiscal 2019.
• The county's retail economy continues to experience modest growth. Retail sales for 2019 wereup approximately 1.8% over 2018. It should be noted that 100% of the sales tax payable to thecounty is dedicated to education and is split, based on an average daily attendance factor,between the Washington County Board of Education and the Johnson City Board of Education.
• Based on data from the Bureau of Economic Analysis, Washington County ranked 11th inTennessee in per capita personal income ($43,299) and experienced a 4.2% increase in calendar2018 over calendar 2017. Tennessee experienced a 3.6% overall increase in the same measure.The American Community Survey estimated the five-year average median household income forWashington County to be $44,180.
• The unemployment rate stood at 4.2% in June 2019 as compared to 4.3% in June 2018. The highwas 9.8% in January 2010. Local unemployment at fiscal year-end was slightly higher than thestate average of 4.0%. The relative stability of Washington County’s employment picture can beattributed to the county’s diversified and stable job base.
Healthy reserves, conservative management and budgeting, and a diverse and stable tax base and local economy allowed Washington County to maintain its strong financial position in 2019 and continue the current level of services for the near-term.
Requests for Information
This financial report is designed to provide a general overview of the Washington County's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to:
Office of the Director of Accounts and Budgets Washington County Office Building
P.O. Box 219 Jonesborough, TN 37659
Complete financial statements for the component unit may be obtained from the following:
Washington County Emergency Communications District 4722 Lake Park Drive
Johnson City, Tennessee 37615
26
BASIC FINANCIAL STATEMENTS
27
Exhibit A
Washington County, TennesseeStatement of Net PositionJune 30, 2019
Primary Washington EmergencyGovernment County Communica-
Governmental School tionsActivities Department District
ASSETS
Cash $ 261,919 $ 50 $ 1,401,158Equity in Pooled Cash and Investments 45,591,590 8,324,627 0Inventories 0 98,589 0Accounts Receivable 258,418 11,780 0Due from Other Governments 1,869,456 3,389,402 0Property Taxes Receivable 45,002,687 12,344,680 0Allowance for Uncollectible Property Taxes (806,394) (222,497) 0Prepaid Items 20,229 0 16,509Restricted Assets: Amounts Accumulated for Pension Benefits 0 93,613 0Net Pension Asset - Agent Plan 1,285,088 632,095 0Net Pension Asset - Teacher Retirement Plans 0 2,948,773 0Capital Assets: Assets Not Depreciated: Land 7,750,381 2,548,284 0 Construction in Progress 30,755,413 0 0 Assets Net of Accumulated Depreciation: Buildings and Improvements 29,958,244 65,391,205 1,983,600 Other Capital Assets 7,085,775 4,852,702 401,177 Infrastructure 22,657,446 0 143,416Total Assets $ 191,690,252 $ 100,413,303 $ 3,945,860
(Continued)
Component Units
28
Exhibit A
Washington County, TennesseeStatement of Net Position (Cont.)
Washington EmergencyPrimary Government County Communica-
Governmental School tionsActivities Department District
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding $ 8,377,538 $ 0 $ 0Pension Changes in Experience 698,448 912,852 221,354Pension Changes in Assumptions 950,617 2,109,265 83,460Pension Contributions After Measurement Date 1,797,665 3,731,236 202,086Pension Changes in Proportionate Share 0 153,101 0OPEB Changes in Experience 0 186,318 0OPEB Changes in Assumptions 92,091 222,890 0OPEB Contributions after Measurement Date 0 388,828 0OPEB Changes in Proportionate Share 0 421,017 0Total Deferred Outflows of Resources $ 11,916,359 $ 8,125,507 $ 506,900
LIABILITIES
Accounts Payable $ 1,271,110 $ 297,403 $ 5,062Accrued Payroll 338,235 0 62,952Accrued Interest Payable 585,486 0 0Payroll Deductions Payable 59,038 1,634,706 29,493Cash Overdraft 0 29,958 0Contracts Payable 2,868,642 0 0Retainage Payable 147,177 0 0Compensated Absences Payable 0 0 422,783Claims and Judgments Payable 476,425 0 0Due to State of Tennessee 0 13,289 0Other Current Liabilities 12,835 489,285 0Noncurrent Liabilities: Due Within One Year - Debt 7,750,000 0 0 Due Within One Year - Other 661,325 199,650 0 Due in More Than One Year - Debt 166,323,367 0 0 Due in More Than One Year - Other 5,410,065 7,587,981 1,067,132Total Liabilities $ 185,903,705 $ 10,252,272 $ 1,587,422
(Continued)
Component Units
29
Exhibit A
Washington County, TennesseeStatement of Net Position (Cont.)
Washington EmergencyPrimary Government County Communica-
Governmental School tionsActivities Department District
DEFERRED INFLOWS OF RESOURCES
Deferred Current Property Taxes $ 42,696,182 $ 11,705,900 $ 0Pension Changes in Experience 1,189,262 4,322,469 256,650Pension Changes in Investment Earnings 296,004 757,754 29,601Pension Changes in Proportionate Share 0 60,359 0OPEB Changes in Experience 1,094,099 0 0OPEB Changes in Assumptions 91,368 277,645 0Total Deferred Inflows of Resources $ 45,366,915 $ 17,124,127 $ 286,251
NET POSITION
Net Investment in Capital Assets $ 69,266,986 $ 72,792,191 $ 2,528,193Restricted for: General Government 193,606 0 0 Finance 43,262 0 0 Administration of Justice 91,042 0 0 Public Safety 562,095 0 0 Social, Cultural, and Recreational Services 55,638 0 0 Highways/Public Works 1,423,576 0 0 Debt Service 6,624,510 0 0 Capital Projects 2,857,538 0 0 Education 0 767,243 0 Pensions 1,285,088 3,674,481 0Unrestricted (110,067,350) 3,928,496 50,894
Total Net Position $ (27,664,009) $ 81,162,411 $ 2,579,087
The notes to the financial statements are an integral part of this statement.
Component Units
30
Exhibit B
Washington County, TennesseeStatement of ActivitiesFor the Year Ended June 30, 2019
Net (Expense) Revenue and Changes in Net PositionPrimary
Program Revenues Government Washington EmergencyOperating Capital Total County Communica-
Charges for Grants and Grants and Governmental School tionsFunctions/Programs Expenses Services Contributions Contributions Activities Department District
Primary Government: Governmental Activities: General Government $ 7,963,052 $ 2,042,945 $ 17,204 $ 0 $ (5,902,903) $ 0 $ 0 Finance 2,949,719 3,623,211 0 0 673,492 0 0 Administration of Justice 4,334,215 2,987,369 66,985 10,089 (1,269,772) 0 0 Public Safety 21,257,958 2,111,726 1,582,906 164,059 (17,399,267) 0 0 Public Health and Welfare 6,122,851 297,976 1,101,428 0 (4,723,447) 0 0 Social, Cultural, and Recreational Services 1,132,166 20,787 16,500 973 (1,093,906) 0 0 Agriculture and Natural Resources 506,131 0 17,500 0 (488,631) 0 0 Highways 8,384,896 132,239 3,216,326 1,144,750 (3,891,581) 0 0 Education 1,641,824 0 0 0 (1,641,824) 0 0 Debt Service: Interest on Long-term Debt 5,338,159 0 260,000 0 (5,078,159) 0 0 Total Primary Government $ 59,630,971 $ 11,216,253 $ 6,278,849 $ 1,319,871 $ (40,815,998) $ 0 $ 0
Component Units:Washington County School Department $ 73,160,300 $ 1,572,584 $ 5,883,882 $ 402,827 $ 0 $ (65,301,007) $ 0Emergency Communications District 3,275,887 2,120,250 1,618,338 0 0 0 462,701
Total Component Units $ 76,436,187 $ 3,692,834 $ 7,502,220 $ 402,827 $ 0 $ (65,301,007) $ 462,701
(Continued)
Component Units
31
Exhibit B
Washington County, TennesseeStatement of Activities (Cont.)
Net (Expense) Revenue and Changes in Net PositionPrimary
Program Revenues Government Washington EmergencyOperating Capital Total County Communica-
Charges for Grants and Grants and Governmental School tionsFunctions/Programs Expenses Services Contributions Contributions Activities Department District
General Revenues: Taxes: Property Taxes Levied for General Purposes $ 35,154,945 $ 13,600,066 $ 0 Property Taxes Levied for Debt Service 12,710,440 0 0 Local Option Sales Taxes 19,379 15,338,585 0 Litigation Tax- General 212,273 0 0 Litigation Tax- Special Purpose 23,780 0 0 Litigation Tax- Jail, Workhouse, or Courthouse 341,439 0 0 Litigation Tax- Courtroom Security 266,377 0 0 Mixed Drink Tax 0 1,161 0 Wholesale Beer Tax 339,774 0 0 Business Tax 1,333,906 369,150 0 Mineral and Coal Severance Tax 18,306 0 0 Other Local Taxes 171,018 0 0 Grants and Contributions Not Restricted to Specific Programs 2,174,470 37,893,009 0 Unrestricted Investment Income 712,210 141,437 5,923 Miscellaneous 241,826 124,382 33,032 Gain on Investments 0 4,726 0 Gain on Sale of Captial Assets 56,518 50,101 6,540Total General Revenues $ 53,776,661 $ 67,522,617 $ 45,495
Change in Net Position $ 12,960,663 $ 2,221,610 $ 508,196Net Position, July 1, 2018 (40,624,672) 78,940,801 2,070,891
Net Position, June 30, 2019 $ (27,664,009) $ 81,162,411 $ 2,579,087
The notes to the financial statements are an integral part of this statement.
Component Units
32
Exhibit C-1
Washington County, TennesseeBalance SheetGovernmental FundsJune 30, 2019
OtherHighway / General General Govern- Total
Public Debt Capital mental GovernmentalGeneral Works Service Projects Funds Funds
ASSETS
Cash $ 232 $ 0 $ 3,242 $ 0 $ 258,445 $ 261,919Equity in Pooled Cash and Investments 16,930,567 6,244,449 6,560,212 12,379,069 961,937 43,076,234Accounts Receivable 34,935 7,006 0 0 129,500 171,441Due from Other Governments 1,188,086 586,208 17,480 9,449 68,233 1,869,456Due from Other Funds 372,556 262 0 21,529 1,541 395,888Property Taxes Receivable 21,384,230 4,471,671 11,816,467 6,373,518 956,801 45,002,687Allowance for Uncollectible Property Taxes (383,174) (80,798) (213,202) (112,217) (17,003) (806,394)Prepaid Items 20,229 0 0 0 0 20,229
Total Assets $ 39,547,661 $ 11,228,798 $ 18,184,199 $ 18,671,348 $ 2,359,454 $ 89,991,460
LIABILITIES
Accounts Payable $ 853,473 $ 17,639 $ 0 $ 324,472 $ 52,648 $ 1,248,232Accrued Payroll 272,082 55,597 0 0 10,556 338,235Payroll Deductions Payable 47,471 9,874 0 0 1,693 59,038Contracts Payable 0 143,626 0 2,725,016 0 2,868,642Retainage Payable 0 5,828 0 141,349 0 147,177Due to Other Funds 1,541 0 19,873 0 374,474 395,888Other Current Liabilities 12,835 0 0 0 0 12,835Total Liabilities $ 1,187,402 $ 232,564 $ 19,873 $ 3,190,837 $ 439,371 $ 5,070,047
DEFERRED INFLOWS OF RESOURCES
Deferred Current Property Taxes $ 20,288,257 $ 4,239,337 $ 11,203,963 $ 6,056,196 $ 908,429 $ 42,696,182Deferred Delinquent Property Taxes 619,703 131,744 347,151 178,317 27,272 1,304,187
(Continued)
Major FundsNonmajor
Funds
33
Exhibit C-1
Washington County, TennesseeBalance SheetGovernmental Funds (Cont.)
OtherHighway / General General Govern- Total
Public Debt Capital mental GovernmentalGeneral Works Service Projects Funds Funds
DEFERRED INFLOWS OF RESOURCES (Cont.)
Other Deferred/Unavailable Revenue $ 152,896 $ 0 $ 0 $ 0 $ 0 $ 152,896Total Deferred Inflows of Resources $ 21,060,856 $ 4,371,081 $ 11,551,114 $ 6,234,513 $ 935,701 $ 44,153,265
FUND BALANCES
Nonspendable:Prepaid Items $ 20,229 $ 0 $ 0 $ 0 $ 0 $ 20,229
Restricted:Restricted for General Government 193,606 0 0 0 0 193,606Restricted for Finance 43,262 0 0 0 0 43,262Restricted for Administration of Justice 91,042 0 0 0 0 91,042Restricted for Public Safety 188,376 0 0 0 373,719 562,095Restricted for Social, Cultural, and Recreational Services 55,638 0 0 0 0 55,638Restricted for Highways/Public Works 0 1,487,660 0 0 0 1,487,660Restricted for Debt Service 0 0 6,613,212 0 249,633 6,862,845Restricted for Capital Projects 0 0 0 9,245,998 0 9,245,998
Committed:Committed for Public Health and Welfare 0 0 0 0 361,030 361,030Committed for Highways/Public Works 0 5,137,493 0 0 0 5,137,493
Assigned:Assigned for General Government 1,297,428 0 0 0 0 1,297,428Assigned for Finance 11,470 0 0 0 0 11,470Assigned for Administration of Justice 7,588 0 0 0 0 7,588Assigned for Public Safety 213,193 0 0 0 0 213,193Assigned for Public Health and Welfare 50 0 0 0 0 50Assigned for Social, Cultural, and Recreational Services 602,055 0 0 0 0 602,055
(Continued)
Major FundsNonmajor
Funds
34
Exhibit C-1
Washington County, TennesseeBalance SheetGovernmental Funds (Cont.)
OtherHighway / General General Govern- Total
Public Debt Capital mental GovernmentalGeneral Works Service Projects Funds Funds
FUND BALANCES (Cont.)
Assigned (Cont.):Assigned for Agriculture and Natural Resources $ 478 $ 0 $ 0 $ 0 $ 0 $ 478
Unassigned 14,574,988 0 0 0 0 14,574,988Total Fund Balances $ 17,299,403 $ 6,625,153 $ 6,613,212 $ 9,245,998 $ 984,382 $ 40,768,148
Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 39,547,661 $ 11,228,798 $ 18,184,199 $ 18,671,348 $ 2,359,454 $ 89,991,460
The notes to the financial statements are an integral part of this statement.
Major FundsNonmajor
Funds
35
Exhibit C-2
Washington County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionJune 30, 2019
Amounts reported for governmental activities in the statementof net position (Exhibit A) are different because:
Total fund balances - balance sheet - governmental funds (Exhibit C-1) $ 40,768,148
(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 7,750,381 Add: construction in progress 30,755,413 Add: infrastructure net of accumulated depreciation 22,657,446 Add: buildings and improvements net of accumulated depreciation 29,958,244 Add: other capital assets net of accumulated depreciation 7,085,775 98,207,259
(2) Long-term liabilities are not due and payable in the currentperiod and therefore are not reported in the governmental funds. Less: notes payable $ (2,560,000) Less: bonds payable (155,750,000) Less: nonexchange financial guarantee payable (1,408,878) Add: deferred amount on refunding 8,377,538 Less: unamortized premium on debt (14,354,489) Less: OPEB liability (4,004,749) Less: compensated absences payable (2,066,641) Less: accrued interest on bonds and notes (585,486) (172,352,705)
(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions and OPEB will be amortizedand recognized as components of pension and OPEB expense in future years: Add: deferred outflows of resources related to pensions $ 3,446,730 Less: deferred inflows of resources related to pensions (1,485,266) Add: deferred outflows of resources related to OPEB 92,091 Less: deferred inflows of resources related to OPEB (1,185,467) 868,088
(4) Net pension assets of the agent plan are not current financial resources and therefore are not reported in the governmental funds. 1,285,088
(5) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 1,457,083
(6) Internal service funds are used by management to charge the cost of employee health insurance to individual funds. Theassets and liabilities of the internal service fund are included in governmental activities in the statementof net position. 2,103,030
Net position of governmental activities (Exhibit A) $ (27,664,009)
The notes to the financial statements are an integral part of this statement.
36
Exhibit C-3
Washington County, TennesseeStatement of Revenues, Expenditures,
and Changes in Fund BalancesGovernmental FundsFor the Year Ended June 30, 2019
OtherHighway / General General Govern- Total
Public Debt Capital mental GovernmentalGeneral Works Service Projects Funds Funds
RevenuesLocal Taxes $ 24,691,482 $ 5,071,513 $ 13,504,048 $ 6,899,258 $ 1,033,796 $ 51,200,097Licenses and Permits 707,869 1,099 1,640 842 129 711,579Fines, Forfeitures, and Penalties 525,807 0 0 0 58,420 584,227Charges for Current Services 642,719 0 0 0 130,842 773,561Other Local Revenues 445,787 355,573 106,697 232,704 202,158 1,342,919Fees Received From County Officials 6,655,364 0 0 0 0 6,655,364State of Tennessee 4,225,682 4,361,076 0 0 134,930 8,721,688Federal Government 1,583,742 0 0 0 0 1,583,742Other Governments and Citizens Groups 216,741 158,469 0 0 260,000 635,210
Total Revenues $ 39,695,193 $ 9,947,730 $ 13,612,385 $ 7,132,804 $ 1,820,275 $ 72,208,387
ExpendituresCurrent:
General Government $ 4,977,851 $ 0 $ 0 $ 0 $ 81 $ 4,977,932Finance 3,024,428 0 0 0 425 3,024,853Administration of Justice 4,455,722 0 0 0 12,577 4,468,299Public Safety 20,582,514 0 0 0 18,307 20,600,821Public Health and Welfare 4,087,809 0 0 0 1,517,708 5,605,517Social, Cultural, and Recreational Services 1,021,334 0 0 0 0 1,021,334Agriculture and Natural Resources 507,471 0 0 0 0 507,471Other Operations 1,415,171 0 0 0 0 1,415,171Highways 0 8,991,236 0 0 0 8,991,236
Debt Service:Principal on Debt 0 0 6,545,000 0 210,000 6,755,000Interest on Debt 0 0 5,968,330 0 49,850 6,018,180Other Debt Service 0 0 272,093 0 0 272,093
(Continued)
Major FundsNonmajor
Funds
37
Exhibit C-3
Washington County, TennesseeStatement of Revenues, Expenditures,
and Changes in Fund BalancesGovernmental Funds (Cont.)
OtherHighway / General General Govern- Total
Public Debt Capital mental GovernmentalGeneral Works Service Projects Funds Funds
Expenditures (Cont.)Capital Projects $ 0 $ 0 $ 0 $ 18,798,977 $ 0 $ 18,798,977Capital Projects - Donated 123,187 0 0 604,401 0 727,588
Total Expenditures $ 40,195,487 $ 8,991,236 $ 12,785,423 $ 19,403,378 $ 1,808,948 $ 83,184,472
Excess (Deficiency) of RevenuesOver Expenditures $ (500,294) $ 956,494 $ 826,962 $ (12,270,574) $ 11,327 $ (10,976,085)
Other Financing Sources (Uses)Insurance Recovery $ 11,000 $ 6,156 $ 0 $ 0 $ 4,345 $ 21,501Transfers In 0 0 188,347 0 0 188,347Transfers Out (49,000) (107,347) 0 0 (32,000) (188,347)
Total Other Financing Sources (Uses) $ (38,000) $ (101,191) $ 188,347 $ 0 $ (27,655) $ 21,501
Net Change in Fund Balances $ (538,294) $ 855,303 $ 1,015,309 $ (12,270,574) $ (16,328) $ (10,954,584)Fund Balance, July 1, 2018 17,837,697 5,769,850 5,597,903 21,516,572 1,000,710 51,722,732
Fund Balance, June 30, 2019 $ 17,299,403 $ 6,625,153 $ 6,613,212 $ 9,245,998 $ 984,382 $ 40,768,148
The notes to the financial statements are an integral part of this statement.
Major FundsNonmajor
Funds
38
Exhibit C-4
Washington County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesFor the Year Ended June 30, 2019
Amounts reported for governmental activities in the statementof activities (Exhibit B) are different because:
Net change in fund balances - total governmental funds (Exhibit C-3) $ (10,954,584)
(1) Governmental funds report capital outlays as expenditures. However, in thestatement of activities, the cost of these assets is allocated over their usefullives and reported as depreciation expense. The difference between capital outlaysand depreciation is itemized as follows: Add: capital assets purchased in the current period $ 20,351,770 Less: current-year depreciation expense (3,848,540) 16,503,230
(2) The effect of various miscellaneous transactions involving capital assets (sales, trade-ins, and donations) is to increase (decrease) net position: Less: book value of capital assets disposed (26,185)
(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2019 $ 1,457,083 Less: deferred delinquent property taxes and other deferred June 30, 2018 (1,138,219) 318,864
(4) The issuance of long-term debt (e.g., bonds, notes, other loans, leases) provides current financial resources to governmental funds, while the repaymentof the principal of long-term debt consumes the current financialresources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effectof premiums, discounts, and similar items when debt isfirst issued, whereas these amounts are deferred and amortized in thestatement of activities. This amount is the effect of these differencesin the treatment of long-term debt and related items: Add: principal payments on bonds $ 2,040,000 Add: principal payments on notes 565,000 Add: principal payments on other loans 4,150,000 Less: change in nonexchange financial guarantee (1,408,878) Add: change in unamortized premium on debt issuances 1,528,598 Less: change in deferred amount on refunding debt (894,935) 5,979,785
(5) Some expenses reported in the statement of activities do not requirethe use of current financial resources and therefore are not reportedas expenditures in the governmental funds. Change in accrued interest payable $ 46,358 Change in OPEB liability 858,080 Change in net pension asset/liability 1,506,134 Change in deferred outflows related to pensions (276,427) Change in deferred inflows related to pensions (793,216) Change in deferred outflows related to OPEB 92,091 Change in deferred inflows related to OPEB (1,078,207) Change in compensated absences payable (102,474) 252,339
(6) Internal service funds are used by management to charge the cost of employee health benefits to individual funds. The net revenue (expense) ofcertain activities of the internal service fund is reported with governmentalactivities in the statement of activities. 887,214
Change in net position of governmental activities (Exhibit B) $ 12,960,663
The notes to the financial statements are an integral part of this statement.
39
Exhibit C-5
Washington County, TennesseeStatement of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral FundFor the Year Ended June 30, 2019
Actual VarianceRevenues/ with Final
Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2018 6/30/2019 Basis) Original Final (Negative)
RevenuesLocal Taxes $ 24,691,482 $ 0 $ 0 $ 24,691,482 $ 24,679,987 $ 24,679,987 $ 11,495Licenses and Permits 707,869 0 0 707,869 690,500 690,500 17,369Fines, Forfeitures, and Penalties 525,807 0 0 525,807 441,000 425,000 100,807Charges for Current Services 642,719 0 0 642,719 592,555 593,555 49,164Other Local Revenues 445,787 0 0 445,787 177,700 247,612 198,175Fees Received From County Officials 6,655,364 0 0 6,655,364 6,885,100 6,915,100 (259,736)State of Tennessee 4,225,682 0 0 4,225,682 4,723,608 4,737,655 (511,973)Federal Government 1,583,742 0 0 1,583,742 1,928,009 2,029,768 (446,026)Other Governments and Citizens Groups 216,741 0 0 216,741 202,000 289,000 (72,259)
Total Revenues $ 39,695,193 $ 0 $ 0 $ 39,695,193 $ 40,320,459 $ 40,608,177 $ (912,984)
ExpendituresGeneral Government
County Commission $ 115,936 $ 0 $ 0 $ 115,936 $ 120,450 $ 122,250 $ 6,314Board of Equalization 6,210 0 0 6,210 7,400 7,400 1,190County Mayor/Executive 249,612 0 57 249,669 253,160 254,410 4,741County Attorney 366,165 (10,893) 116 355,388 440,290 440,290 84,902Election Commission 669,815 (493) 0 669,322 720,850 727,850 58,528Register of Deeds 542,439 (723) 0 541,716 586,782 593,782 52,066Planning 148,971 0 0 148,971 149,620 149,620 649Codes Compliance 345,859 0 0 345,859 374,310 374,310 28,451County Buildings 416,981 0 11,510 428,491 439,880 440,880 12,389Other General Administration 1,593,306 (14,931) 194,128 1,772,503 2,018,720 1,780,850 8,347Preservation of Records 522,557 (15,098) 1,005 508,464 239,355 572,855 64,391
FinanceAccounting and Budgeting 449,874 0 31 449,905 392,530 495,300 45,395Purchasing 201,494 0 2,269 203,763 203,920 203,920 157Property Assessor's Office 311,485 0 0 311,485 332,212 332,212 20,727Reappraisal Program 539,918 (430) 10 539,498 613,810 618,810 79,312County Trustee's Office 541,448 0 9,160 550,608 590,652 600,670 50,062
(Continued)
Budgeted Amounts
40
Exhibit C-5
Washington County, TennesseeStatement of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral Fund (Cont.)
Actual VarianceRevenues/ with Final
Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2018 6/30/2019 Basis) Original Final (Negative)
Expenditures (Cont.)Finance (Cont.)
County Clerk's Office $ 980,209 $ 0 $ 0 $ 980,209 $ 1,038,222 $ 1,038,222 $ 58,013Administration of Justice
Circuit Court 2,075,056 0 258 2,075,314 2,100,782 2,138,782 63,468General Sessions Judge 660,864 (7,000) 700 654,564 682,262 682,262 27,698Drug Court 15,000 0 0 15,000 15,000 15,000 0Chancery Court 730,141 (352) 0 729,789 791,222 791,222 61,433District Attorney General 90,041 0 0 90,041 87,000 139,412 49,371Other Administration of Justice 163,213 0 0 163,213 238,460 238,460 75,247Courtroom Security 674,152 (16,558) 6,630 664,224 675,450 694,110 29,886Victim Assistance Programs 47,255 0 0 47,255 113,000 113,000 65,745
Public SafetySheriff's Department 8,690,793 (153,448) 134,104 8,671,449 8,921,482 9,231,650 560,201Drug Enforcement 0 0 0 0 7,130 7,130 7,130Administration of the Sexual Offender Registry 600 0 0 600 0 1,000 400Jail 9,183,630 (80,521) 54,908 9,158,017 9,221,488 9,766,054 608,037Juvenile Services 466,976 0 1,782 468,758 483,630 494,030 25,272Work Release Program 8,582 0 0 8,582 11,970 11,970 3,388Fire Prevention and Control 899,050 0 0 899,050 920,050 899,050 0Civil Defense 152,824 0 0 152,824 120,058 158,508 5,684Rescue Squad 84,300 0 0 84,300 84,300 84,300 0County Coroner/Medical Examiner 340,918 0 0 340,918 267,400 271,400 (69,518)Other Public Safety 754,841 0 800 755,641 689,790 764,063 8,422
Public Health and WelfareLocal Health Center 1,917,758 (8,847) 49 1,908,960 2,199,310 2,204,160 295,200Rabies and Animal Control 190,000 0 0 190,000 190,000 190,000 0Ambulance/Emergency Medical Services 1,762,400 0 0 1,762,400 1,762,400 1,777,400 15,000Alcohol and Drug Programs 5,864 0 0 5,864 5,900 5,900 36Regional Mental Health Center 17,000 0 0 17,000 17,000 17,000 0General Welfare Assistance 78,738 0 0 78,738 72,000 82,000 3,262
(Continued)
Budgeted Amounts
41
Exhibit C-5
Washington County, TennesseeStatement of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral Fund (Cont.)
Actual VarianceRevenues/ with Final
Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2018 6/30/2019 Basis) Original Final (Negative)
Expenditures (Cont.)Public Health and Welfare (Cont.)
Aid to Dependent Children $ 19,650 $ 0 $ 0 $ 19,650 $ 19,650 $ 19,650 $ 0Sanitation Education/Information 96,399 0 0 96,399 72,330 104,320 7,921
Social, Cultural, and Recreational ServicesAdult Activities 119,977 0 0 119,977 119,977 119,977 0Libraries 780,307 0 2,055 782,362 787,770 798,643 16,281Other Social, Cultural, and Recreational 121,050 0 0 121,050 121,050 121,050 0
Agriculture and Natural ResourcesAgricultural Extension Service 318,282 0 478 318,760 340,094 340,094 21,334Forest Service 1,500 0 0 1,500 1,500 1,500 0Soil Conservation 129,192 0 0 129,192 156,170 156,170 26,978Storm Water Management 55,997 0 0 55,997 62,500 62,500 6,503Other Agriculture and Natural Resources 2,500 0 0 2,500 0 2,500 0
Other OperationsTourism 7,000 0 0 7,000 7,000 7,000 0Other Economic and Community Development 666,306 (2,198) 0 664,108 670,838 680,838 16,730Airport 577,087 0 0 577,087 577,552 577,552 465Veterans' Services 47,073 0 0 47,073 53,500 53,500 6,427Contributions to Other Agencies 87,252 0 0 87,252 61,510 63,360 (23,892)Employee Benefits 30,453 0 0 30,453 5,000 40,000 9,547
Capital Projects - DonatedCapital Projects Donated to Other Entities 123,187 (15,500) 21,600 129,287 0 129,973 686
Total Expenditures $ 40,195,487 $ (326,992) $ 441,650 $ 40,310,145 $ 41,255,688 $ 42,810,121 $ 2,499,976
Excess (Deficiency) of RevenuesOver Expenditures $ (500,294) $ 326,992 $ (441,650) $ (614,952) $ (935,229) $ (2,201,944) $ 1,586,992
Other Financing Sources (Uses)Insurance Recovery $ 11,000 $ 0 $ 0 $ 11,000 $ 0 $ 0 $ 11,000Transfers In 0 0 0 0 175,000 175,000 (175,000)
(Continued)
Budgeted Amounts
42
Exhibit C-5
Washington County, TennesseeStatement of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral Fund (Cont.)
Actual VarianceRevenues/ with Final
Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2018 6/30/2019 Basis) Original Final (Negative)
Other Financing Sources (Uses) (Cont.)City General Fund Transfer $ 0 $ 0 $ 0 $ 0 $ 87,000 $ 0 $ 0Transfers Out (49,000) 0 0 (49,000) 0 (49,000) 0
Total Other Financing Sources $ (38,000) $ 0 $ 0 $ (38,000) $ 262,000 $ 126,000 $ (164,000)
Net Change in Fund Balance $ (538,294) $ 326,992 $ (441,650) $ (652,952) $ (673,229) $ (2,075,944) $ 1,422,992Fund Balance, July 1, 2018 17,837,697 (326,992) 0 17,510,705 16,855,456 16,855,456 655,249
Fund Balance, June 30, 2019 $ 17,299,403 $ 0 $ (441,650) $ 16,857,753 $ 16,182,227 $ 14,779,512 $ 2,078,241
The notes to the financial statements are an integral part of this statement.
Budgeted Amounts
43
Exhibit C-6
Washington County, TennesseeStatement of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and BudgetHighway/Public Works FundFor the Year Ended June 30, 2019
Actual VarianceRevenues/ with Final
Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2018 6/30/2019 Basis) Original Final (Negative)
RevenuesLocal Taxes $ 5,071,513 $ 0 $ 0 $ 5,071,513 $ 5,074,630 $ 5,074,630 $ (3,117)Licenses and Permits 1,099 0 0 1,099 800 800 299Other Local Revenues 355,573 0 0 355,573 147,500 147,500 208,073State of Tennessee 4,361,076 0 0 4,361,076 4,303,940 5,128,940 (767,864)Other Governments and Citizens Groups 158,469 0 0 158,469 0 0 158,469
Total Revenues $ 9,947,730 $ 0 $ 0 $ 9,947,730 $ 9,526,870 $ 10,351,870 $ (404,140)
ExpendituresHighways
Administration $ 842,046 $ 0 $ 0 $ 842,046 $ 715,310 $ 880,065 $ 38,019Highway and Bridge Maintenance 2,285,463 (11,745) 0 2,273,718 2,832,310 2,847,035 573,317Operation and Maintenance of Equipment 857,324 (1,686) 0 855,638 1,008,820 1,037,110 181,472Asphalt Plant Operations 3,557,690 (4,800) 0 3,552,890 4,226,240 4,487,240 934,350Traffic Control 100,058 0 0 100,058 130,580 130,580 30,522Other Charges 0 0 0 0 228,350 0 0Employee Benefits 0 0 0 0 20,500 0 0Capital Outlay 1,348,655 (172,600) 1,095,080 2,271,135 1,407,840 2,676,270 405,135
Total Expenditures $ 8,991,236 $ (190,831) $ 1,095,080 $ 9,895,485 $ 10,569,950 $ 12,058,300 $ 2,162,815
Excess (Deficiency) of RevenuesOver Expenditures $ 956,494 $ 190,831 $ (1,095,080) $ 52,245 $ (1,043,080) $ (1,706,430) $ 1,758,675
Other Financing Sources (Uses)Insurance Recovery $ 6,156 $ 0 $ 0 $ 6,156 $ 0 $ 0 $ 6,156Transfers Out (107,347) 0 0 (107,347) 0 (107,350) 3
Total Other Financing Sources $ (101,191) $ 0 $ 0 $ (101,191) $ 0 $ (107,350) $ 6,159
(Continued)
Budgeted Amounts
44
Exhibit C-6
Washington County, TennesseeStatement of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and BudgetHighway/Public Works Fund (Cont.)
Actual VarianceRevenues/ with Final
Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2018 6/30/2019 Basis) Original Final (Negative)
Net Change in Fund Balance $ 855,303 $ 190,831 $ (1,095,080) $ (48,946) $ (1,043,080) $ (1,813,780) $ 1,764,834Fund Balance, July 1, 2018 5,769,850 (190,831) 0 5,579,019 4,846,764 4,846,764 732,255
Fund Balance, June 30, 2019 $ 6,625,153 $ 0 $ (1,095,080) $ 5,530,073 $ 3,803,684 $ 3,032,984 $ 2,497,089
The notes to the financial statements are an integral part of this statement.
Budgeted Amounts
45
Exhibit D-1
Washington County, TennesseeStatement of Net PositionProprietary FundJune 30, 2019
EmployeeInsurance -
HealthFund
ASSETS
Current Assets:Equity in Pooled Cash and Investments $ 2,515,356Accounts Receivable 86,977
Total Assets $ 2,602,333
LIABILITIES
Current Liabilities:Accounts Payable $ 22,878Claims and Judgments Payable 476,425
Total Liabilities $ 499,303
NET POSITION
Unrestricted $ 2,103,030
Total Net Position $ 2,103,030
The notes to the financial statements are an integral part of this statement.
Governmental Activities -
Internal Service Fund
46
Exhibit D-2Washington County, TennesseeStatement of Revenues, Expenses, and Changes
in Net PositionProprietary FundFor the Year Ended June 30, 2019
EmployeeInsurance -
HealthFund
Operating RevenuesSelf-Insurance Premiums $ 6,501,508Retiree Insurance Payments 31,111
Total Operating Revenues $ 6,532,619
Operating ExpensesPest Control $ 330Rentals 15,450Custodial Supplies 51Drugs and Medical Supplies 12,792Water and Sewer 620Electricity 1,243Other Charges 2,392Medical Claims 4,292,430Handling Charges and Administrative Costs 935,191Office Supplies 79Communication 2,499Contracts with Private Agencies 415,600
Total Operating Expenses $ 5,678,677Operating Income (Loss) $ 853,942
Nonoperating Revenues (Expenses)Investment Income $ 33,272
Total Nonoperating Revenues (Expenses) $ 33,272
Change in Net Position $ 887,214Net Position, July 1, 2018 1,215,816
Net Position, June, 30, 2019 $ 2,103,030
The notes to the financial statements are an integral part of this statement.
Governmental Activities -
Internal Service Fund
47
Exhibit D-3
Washington County, TennesseeStatement of Cash FlowsProprietary FundFor the Year Ended June 30, 2019
EmployeeInsurance -
HealthFund
Cash Flows from Operating Activities Receipts for Self-insurance Premiums $ 6,532,619 Excess Risk Insurance Recovery 630,450 Payments for Administrative Costs (953,309) Payments for Claims (5,076,067) Payments for Vendors (429,238)Net Cash Provided By (Used In) Operating Activities $ 704,455
Cash Flows from Investing Activities Interest on Investments $ 33,272Net Cash Provided By (Used In) Investing Activities $ 33,272
Increase (Decrease) in Cash $ 737,727Cash, July 1, 2018 1,777,629
Cash, June 30, 2019 $ 2,515,356
Reconciliation of Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ 853,942 Adjustments to Reconcile Net Operating Income (loss) to Net Cash Provided By (Used In) Operating Activities: Changes in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (28,961) Increase (Decrease) in Accounts Payable 3,700 Increase (Decrease) in Claims and Judgements Payable (124,226)Net Cash Provided By (Used In) Operating Activities $ 704,455
The notes to the financial statements are an integral part of this statement.
Governmental Activities -
Internal Service Fund
48
Exhibit EWashington County, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2019
ASSETS
Cash $ 5,315,837Equity in Pooled Cash and Investments 1,760,752Accounts Receivable 3,342Due from Other Governments 6,921,323Taxes Receivable 11,286,026Allowance for Uncollectible Taxes (203,416)
Total Assets $ 25,083,864
LIABILITIES
Accounts Payable $ 7,375Due to Other Taxing Units 19,529,227Due to Joint Ventures 93,141Due to Litigants, Heirs, and Others 5,454,121
Total Liabilities $ 25,083,864
The notes to the financial statements are an integral part of this statement.
AgencyFunds
49
Note Page(s)
I. Summary of Significant Accounting PoliciesA. Reporting Entity 52B. Government-wide and Fund Financial Statements 53C. Measurement Focus, Basis of Accounting, and Financial
Statement Presentation 54D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and
Net Position/Fund Balance1. Deposits and Investments 572. Receivables and Payables 583. Inventories and Prepaid Items 594. Restricted Assets 595. Capital Assets 596. Deferred Outflows/Inflows of Resources 607. Compensated Absences 618. Long-term Debt and Long-term Obligations 619. Net Position and Fund Balance 6210. Minimum Fund Balance Policy 64
E. Pension Plans 65F. Other Postemployment Benefits (OPEB) Plans 65
II. Reconciliation of Government-wide and Fund Financial StatementsA. Explanation of Certain Differences Between the Governmental Fund
Balance Sheet and the Government-wide Statement of Net Position 66B. Explanation of Certain Differences Between the Governmental Fund
Statement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 66
III. Stewardship, Compliance, and AccountabilityA. Budgetary Information 67B. Cash Shortage (Prior Years) 67C. Cash Overdraft 68D. Expenditures Exceeded Appropriations 68
IV. Detailed Notes on All FundsA. Deposits and Investments 68B. Capital Assets 75C. Construction Commitments 77D. Interfund Receivables, Payables, and Transfers 77E. Operating Lease 78F. Long-term Debt 79G. Long-term Obligation 83H. Pledges of Future Revenues 85I. On-Behalf Payments 85
(Continued)
WASHINGTON COUNTY, TENNESSEEIndex of Notes to the Financial Statements
50
Note Page(s)
V. Other InformationA. Risk Management 85B. Accounting Changes 87C. Contingent Liabilities 88D. Change in Administration 88E. Joint Ventures 89F. Jointly Governed Organization 91G. Retirement Commitments 92H. Other Postemployment Benefits (OPEB) 110I. Termination Benefits 118J. Office of Central Accounting and Budgeting 119K. Purchasing Laws 119L. Subsequent Events 119
VI. Other Notes - Discretely Presented Washington County EmergencyCommunications District 120
WASHINGTON COUNTY, TENNESSEEIndex of Notes to the Financial Statements (Cont.)
51
WASHINGTON COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2019
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Washington 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 Washington County:
A. Reporting Entity
Washington County is a public municipal corporation governed by an elected 15-member board. In February 2016 Washington County’s board voted to decrease the number of board members effective for the new term beginning September 1, 2018. Washington County was previously governed by an elected 25-member board through August 31, 2018. As required by GAAP, these financial statements present Washington County (the primary government) and its component units. The component units discussed below are included in the county's reporting entity because of the significance of their operational or financial relationships with the county. Discretely Presented Component Units – The following entities meet the criteria for discretely presented component units of the county. They are reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the county.
The Washington County School Department operates the public school system in the county, and the voters of Washington 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 Washington County Emergency Communications District provides a simplified means of securing emergency services through a uniform emergency number for the residents of Washington County, and the Washington 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.
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The Washington County School Department does not issue separate financial statements from those of the county. Therefore, basic financial statements of the School Department are included in this report as listed in the table of contents. Complete financial statements of the Washington County Emergency Communications District can be obtained from its administrative office at the following address:
Administrative Office:
Washington County Emergency Communications District P.O. Box 448 Johnson City, TN 37605
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 Washington 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 Washington 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. Washington County issues all debt for the discretely presented Washington County School Department. There were no debt issues contributed by the county to the School Department during the year ended June 30, 2019.
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Separate financial statements are provided for governmental funds, 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 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 Washington 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. Washington County reports one proprietary fund, an internal service fund. It has no enterprise funds to report. Separate financial statements are provided for governmental funds, 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 60 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. Washington County considers grants and similar revenues to be available if they are collected within 60 days after year-end.
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Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Principal and interest on long-term debt are recognized as fund liabilities when due or when amounts have been accumulated in the General Debt Service Fund for payments to be made early in the following year. Property taxes for the period levied, in-lieu-of tax payments, sales taxes, interest, and miscellaneous taxes are all considered to be susceptible to accrual and have been recognized as revenues of the current period. Applicable business taxes, litigation taxes, state-shared excise taxes, fines, forfeitures, and penalties are not susceptible to accrual since they are not measurable (reasonably estimable). All other revenue items are considered to be measurable and available only when the county receives cash.
Proprietary 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. Washington 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. General Capital Projects Fund – This fund accounts for general capital expenditures of the county.
Additionally, Washington County reports the following fund types:
Internal Service Fund – The Employee Insurance - Health Fund accounts for the primary government’s self-insured health program. Premiums charged to the various county funds and employee payroll deductions are placed in this fund to pay the claims of county employees.
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Agency Funds – These funds account for amounts collected in an agency capacity by the constitutional officers, local sales taxes received by the state to be forwarded to the various cities in Washington County, Johnson City school system’s share of educational revenues, assets held in a custodial capacity for the East Tennessee Railway Authority, state grants and other restricted revenues held for the benefit of the Judicial District Drug Task Force, and restricted revenues held for the benefit of the Office of District Attorney General. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. They do, however, use the accrual basis of accounting to recognize receivables and payables.
The discretely presented Washington County School Department reports the following major governmental fund:
General Purpose School Fund – This fund is the primary operating fund for the School Department. It is used to account for general operations of the School Department.
Additionally, the Washington County School Department reports the following fund type:
Special Revenue Funds – These funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.
Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. The county has one proprietary fund. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the county’s internal service fund is self-insurance premiums. Operating expenses for the internal service fund include various self-insured insurance program expenses and fiscal agent charges.
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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 of the internal service funds, 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 Washington 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 to the General Debt Service Fund. Washington County and the School Department have adopted a policy of reporting U.S. Treasury obligations, U.S. agency obligations, and repurchase agreements with maturities of one year or less when purchased on the balance sheet at amortized cost. Certificates of deposit are reported at cost. Investments in the State Treasurer’s Investment Pool are reported at amortized cost using a stable net asset value. The primary oversight responsibility for the investments and operations of the State Treasurer’s Investment Pool rests with the Funding Board of the State of Tennessee (Funding Board). The Funding Board has established an investment policy that is administered by the state treasurer. These polices were designed to comply with generally accepted accounting principles. In addition, state statutes require the state treasurer to administer the pool under the same terms and conditions, including collateral requirements, as prescribed for other funds invested by the state treasurer. Compliance with Funding Board polices is audited by the Tennessee Comptroller of the Treasury, Division of State Audit. The latest audit opinion issued by the Division of State Audit concluded that the State Treasurer’s Investment Pooled complied with accounting principles generally accepted in the United States of America.
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All other investments are reported at fair value. No investments required to be reported at fair value were held at the balance sheet date.
2. Receivables and Payables
Activity between funds for unremitted current collections outstanding at the end of the fiscal year is referred to as due to/from other funds. All property tax receivables are shown with an allowance for uncollectibles. The allowance for uncollectible property taxes is equal to 0.89 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 60 days of year-end are considered available and accrued. The allowance for uncollectible taxes represents the estimated amount of the receivable that will be filed in court for collection. Delinquent taxes filed in court for collection are not included in taxes receivable since they are neither measurable nor available.
Property taxes are levied as of the first Monday in October. Taxes become delinquent and begin accumulating interest and penalty the following March 1. Suit must be filed in Chancery Court between the following February 1 to April 1 for any remaining unpaid taxes. Additional costs attach to delinquent taxes after a court suit has been filed.
Most payables are disaggregated on the face of the financial statements. Other current liabilities of the General Fund consist of balances for benefit plan payments not drawn as of June 30, 2019. Other current liabilities of the discretely presented School Department’s General Purpose School Fund consist of balances of employee federal tax deposits and insurance premium payments not drawn as of June 30, 2019. Claims and judgments payable are discussed in Note V.A. Risk Management.
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Retainage payable in the primary government’s Highway/Public Works Fund and General Capital Projects Fund represents amounts withheld from payments made on construction contracts pending completion of the projects. These amounts are held as Equity in Pooled Cash and Investments in the Highway/Public Works and General Capital Projects funds.
3. Inventories and Prepaid Items
Inventories of the discretely presented Washington County School Department are recorded at cost, determined on the first-in, first-out method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Inventories are offset in the nonspendable fund balance account in governmental funds. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as an expenditure when consumed rather than when purchased. Prepaids are offset in the nonspendable fund balance account in governmental funds.
4. Restricted Assets Restricted assets consist of amounts held in a pension stabilization trust by the Tennessee Consolidated Retirement System (TCRS) for the benefit of the discretely presented Washington County School Department’s Teacher Retirement Plan. The purpose of this trust is to accumulate funds to provide stabilization (smoothing) of retirement costs to the school system in times of fluctuating investment returns and market downturns. These funds are held and invested by TCRS pursuant to an irrevocable agreement and may only be used for the benefit of the Washington County School Department to fund retirement benefits upon approval of the TCRS Board of Directors. To date, the Washington County School Department has not withdrawn any funds from the trust to pay pension cost. Trust documents provide that the funds are not subject to the claims of general creditors of the School Department.
5. Capital Assets
Governmental funds do not capitalize the cost of capital outlays; these funds report capital outlays as expenditures upon acquisition. Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, and library books), are reported in the governmental column in the government‐wide
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financial statements. Capital assets are defined by the government as assets with an estimated useful life in excess of one year and with an initial individual cost of $10,000 or more for all assets other than infrastructure, which is a cost of $50,000 or more. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Property, plant, equipment, 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 40Building Improvements 20System Infrastructure 40Vehicles 5-10Office Equipment 5-7Computer Equipment 5
6. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(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 pension changes in experience, pension changes in assumptions, pension contributions after the measurement date, pension other deferrals, OPEB changes in experience, OPEB change in assumptions, OPEB contributions after the measurement date, OPEB other deferrals, and the deferred charge on refunding. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.
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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, pension changes in investment earnings, pension other deferrals, OPEB changes in experiences, OPEB changes in assumptions, and various receivables for revenues, which do not meet the availability criteria in governmental funds.
7. Compensated Absences
It is the county’s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave since Washington County does not have a policy to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government-wide financial statements for the county. A liability for vacation pay is reported in governmental funds only if amounts have matured, for example, as a result of employee resignations and retirements. It is the policy of the Washington County School Department to permit noncertified employees to accumulate a limited amount of earned but unused vacation benefits that lapse at the end of each calendar year. All vacation pay is accrued when incurred in the government-wide financial statements for the School Department. A liability for vacation pay is reported in governmental funds for amounts that have matured at the end of the fiscal year. Also, the general policy of the School Department permits all personnel to accumulate an unlimited amount of unused sick leave days. There is no liability for unpaid accumulated sick leave since the School Department does not have a policy to pay any amounts when employees separate from service.
8. Long-term Debt and Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities Statement of Net Position. Debt premiums and discounts are deferred and are amortized over the life of the new debt. 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
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outflow of resources or a deferred inflow of resources and recognized as a component of interest expense in a systematic and rational manner over the remaining life of the refunded debt or the life of the new debt issued, whichever is shorter. In the fund financial statements, governmental funds recognize debt premiums and discounts, as well as debt issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Only the matured portion (the portion that has come due for payment) of long-term indebtedness, including bonds payable, is recognized as a liability and expenditure in the governmental fund financial statements. Liabilities and expenditures for other long-term obligations, including compensated absences, pensions, other postemployment benefits, and special termination benefits, are recognized to the extent that the liabilities have matured (come due for payment) each period.
9. Net Position and Fund Balance In the government-wide financial statements and the proprietary fund in the fund financial statements, equity is classified as net position and displayed in three components:
a. Net investment in capital assets – Consists of capital assets,
including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
b. Restricted net position – Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or (2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position – All other net position that does not
meet the definition of restricted or net investment in capital assets.
The government-wide Statement of Net Position reports $13,136,355 of restricted net position for the Primary Government, of which $945,643 is restricted by enabling legislation.
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In prior years the Highway/Public Works Fund received and utilized a portion of capital outlay note proceeds from the General Obligation Capital Outlay Note, Series 2013. The resolution for the issuance of this note approved by the county commission required the Highway/Public Works Fund to make annual contributions to the General Debt Service Fund for its respective share of the debt principal and interest requirements. At June 30, 2019, the Highway/Public Works Fund had paid all future requirements through the final maturity date of the note, July 15, 2025. As a result, $1,248,625 of the total $6,613,212 balance of the Restricted Debt Service account for the primary government represents amounts restricted for future payments of the Highway/Public Works Fund’s portion of the associated debt requirements. As of June 30, 2019, Washington County had $125,856,809 in outstanding debt for capital purposes for the discretely presented Washington County School Department. In accordance with state statutes, certain county school debt proceeds must be shared with other public school systems in the county (Johnson City School System) based on an average daily attendance proration. The debt is a liability of Washington County, but the capital assets acquired are reported in the financial statements of the School Department and the Johnson City School System. In addition, Washington County had a nonexchange financial guarantee liability totaling $1,408,878 on June 30, 2019, for capital purposes of a joint venture, the Tri-Cities Regional Airport. This nonexchange financial guarantee is also a liability of Washington County, but the capital assets acquired are reported by the Tri-Cities Regional Airport. Therefore, Washington County has incurred a liability significantly decreasing its unrestricted net position with no corresponding increase in the county’s capital assets. It is the county’s policy that restricted amounts would be reduced first followed by unrestricted amounts when expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available. Also, it is the county’s policy that committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of these unrestricted fund balance classifications could be used. In the fund financial statements, governmental funds report fund balance in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in these funds can be spent. These classifications may consist of the following:
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Nonspendable Fund Balance – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Restricted Fund Balance – includes amounts that have constraints placed on the use of the resources that are either (a) externally imposed by creditors, grantors, contributors or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.
Committed Fund Balance – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal resolutions of the county commission, the county’s highest level of decision-making authority and the Board of Education, the School 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 makes assignments for the general government. The Board of Education makes assignments for the School Department. Assigned fund balance in the General Fund consists of amounts assigned for encumbrances ($441,650), amounts assigned by the county commission for various purposes within the general government ($579,352), amounts assigned for future contributions ($600,000), and amounts appropriated for use in the 2019-20 year budget ($511,260). Assigned fund balance in the discretely presented School Department’s General Purpose School Fund consists of amounts appropriated for use in the 2019-20 year budget ($1,814,709).
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 has not been restricted, committed, or assigned to specific purposes within the General and General Purpose School funds.
10. Minimum Fund Balance Policy
To provide management with appropriate guidelines and direction to assist in making sound decisions related to managing the fund balance of certain governmental funds, the following minimum fund balance policy exists:
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General Fund – Beginning unassigned fund balance will be four months budgeted average expenditures for the year and will not at any point be less than 15 percent of projected annual expenditures. General Debt Service Fund – Beginning cash or investments will be 40 percent of the current year debt service obligations or an amount equal to the debt service fund expenditure requirements during the first six months of the fiscal year, whichever is greater.
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 Washington County’s participation in the Public Employee Retirement Plan of the Tennessee Consolidated Retirement System (TCRS), and additions to/deductions from Washington 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 Washington County School Department
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teacher Retirement Plan and the Teacher Legacy Pension Plan in the Tennessee Consolidated Retirement System, and additions to/deductions from fiduciary net position have been determined on the same basis as they are reported by the TCRS. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of the Teacher Retirement Plan and the Teacher Legacy Pension Plan. Investments are reported at fair value.
F. Other Postemployment Benefit (OPEB) Plans
Primary Government For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, have been determined on the same basis as they are reported by Washington County. For this purpose, Washington County recognizes benefit payments when due and payable in accordance with benefit terms. Washington County’s OPEB plan is not administered through a trust.
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Discretely Presented Washington County School Department
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, have been determined on the same basis as they are reported by the discretely presented Washington County School Department. For this purpose, the School Department recognizes benefit payments when due and payable in accordance with benefit terms. The School Department’s OPEB plan is not administered through a trust.
II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of certain differences between the governmental fund balance sheet and the government-wide Statement of Net Position
Primary Government Exhibit C-2 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of governmental funds with the government-wide Statement of Net Position. Discretely Presented Washington 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 change in net position of governmental activities reported in the government-wide Statement of Activities. Discretely Presented Washington 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.
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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, County Mayor, County Attorney, etc.). Management may make revisions within major categories, but only the county commission may transfer appropriations between major categories. During the year, several supplementary appropriations were necessary.
The county's budgetary basis of accounting is consistent with GAAP, except instances in which encumbrances are treated as budgeted expenditures. The difference between the budgetary basis and GAAP basis is presented on the face of each budgetary schedule.
At June 30, 2019, Washington County had encumbrances in the following budgeted funds:
Funds Amount
Primary Government Major Fund: General $ 441,650 Highway/Public Works 1,095,080 General Capital Projects 4,579,578
B. Cash Shortage (Prior Years)
The audit of Washington County for the 1999-2000 year reported a cash shortage of $17,863 in the Sheriff’s Department. On March 24, 2000, a Sheriff’s Department bookkeeper was found guilty of theft over $10,000 and
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was sentenced. The bookkeeper was also ordered to pay restitution totaling $17,863 to the Sheriff’s Department. As of June 30, 2018, the former bookkeeper had paid restitution of $3,215 leaving an unpaid difference of $14,648. On March 25, 2019 the county commission voted to write-off the remaining cash shortage.
C. Cash Overdraft
The School Federal Projects Fund of the discretely presented School Department had a cash overdraft of $29,958 at June 30, 2019. This cash overdraft resulted from the issuance of checks exceeding cash on deposit with the county trustee. The cash overdraft was liquidated subsequent to June 30, 2019.
D. Expenditures Exceeded Appropriations
Expenditures exceeded appropriations approved by the county commission in the County Coroner/Medical Examiner and Contributions to Other Agencies major appropriation categories (the legal level of control) in the General Fund by $69,518 and $23,892, respectively. Expenditures that exceed appropriations are a violation of state statutes. These expenditures in excess of appropriations were funded by available fund balance in the General Fund.
IV. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments Washington County and the Washington County School Department participate in an internal cash and investment pool through the Office of Trustee. The county trustee is the treasurer of the county and in this capacity is responsible for receiving, disbursing, and investing most county funds. Each fund’s portion of this pool is displayed on the balance sheets or statements of net position as Equity in Pooled Cash and Investments. Cash and investments reflected on the balance sheets or statements of net position represent nonpooled amounts held separately by individual funds. Deposits Legal Provisions. All deposits with financial institutions must be secured by one of two methods. One method involves financial institutions that participate in the bank collateral pool administered by the state treasurer. Participating banks determine the aggregate balance of their public fund accounts for the State of Tennessee and its political subdivisions. The amount of collateral required to secure these public deposits must equal at least 105 percent of the average daily balance of public deposits held. Collateral securities required to be pledged by the participating banks to protect their public fund accounts are pledged to the state treasurer on behalf of the bank collateral pool. The securities pledged to protect these accounts
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are pledged in the aggregate rather than against each account. The members of the pool may be required by agreement to pay an assessment to cover any deficiency. Under this additional assessment agreement, public fund accounts covered by the pool are considered to be insured for purposes of credit risk disclosure. For deposits with financial institutions that do not participate in the bank collateral pool, state statutes require that all deposits be collateralized with collateral whose market value is equal to 105 percent of the uninsured amount of the deposits. The collateral must be placed by the depository bank in an escrow account in a second bank for the benefit of the county.
Investments Legal Provisions. Counties are authorized to make direct investments in bonds, notes, or treasury bills of the U.S. government and obligations guaranteed by the U.S. government or any of its agencies; deposits at state and federal chartered banks and savings and loan associations; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the county’s own legally issued bonds or notes. These investments may not have a maturity greater than two years. The county may make investments with longer maturities if various restrictions set out in state law are followed. Counties are also authorized to make investments in the State Treasurer’s Investment Pool and in repurchase agreements. The primary oversight responsibility for the investments and operations of the State Treasurer’s Investment Pool rests with the Funding Board of the State of Tennessee (Funding Board). The Funding Board has established an investment policy that is administered by the state treasurer. Investments in the State Treasurer’s Investment Pool are reported both by the pool and the county at amortized cost using a stable net asset value. Repurchase agreements must be approved by the state Comptroller’s Office and executed in accordance with procedures established by the State Funding Board. Securities purchased under a repurchase agreement must be obligations of the U.S. government or obligations guaranteed by the U.S. government or any of its agencies. When repurchase agreements are executed, the purchase of the securities must be priced at least two percent below the fair value of the securities on the day of purchase. Investment Balances. As of June 30, 2019, Washington County had the following investment carried at fair value within the fair value hierarchy established by generally accepted accounting principles. All investments are in the county trustee’s investment pool. Separate disclosures concerning pooled investments cannot be made for Washington County and the Washington County School Department since both pool their deposits and investments through the county trustee.
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WeightedAverageMaturity Fair
Investment (days) Maturity ValueInvestments at Fair Value: U.S. Treasury Bills N/A 7-18-19 $ 5,050,097
Total $ 5,050,097
QuotedPrices inActive Significant
Markets for Other SignificantIdentical Observable Unobservable
Fair Value Assets Inputs InputsInvestment by Fair Value Level 6-30-19 (Level 1) (Level 2) (Level 3)
U.S. Treasury Bills $ 5,050,097 $ 5,050,097 $ 0 $ 0
Total $ 5,050,097 $ 5,050,097 $ 0 $ 0
Fair Value Measurements Using
Fair value investments classified at Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Fair value investments classified as Level 2 of the fair value hierarchy are valued using the active market rates for the underlying securities. Fair value investments classified as Level 3 of the fair value hierarchy are valued using non-observable inputs. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. State statutes limit the maturities of certain investments as previously disclosed. Washington County’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The policy generally limits idle funds to investments with maturities of less than two years. Investments with maturities of up to five years may be made with approval of the investment committee and county legislative body. Investments with maturities of greater than five years require the additional approval of the Comptroller of the Treasury. TCRS Stabilization Trust
Legal Provisions. The Washington County School Department is a member of the Tennessee Consolidated Retirement System (TCRS) Stabilization Reserve Trust. The School Department has placed funds into the irrevocable trust as authorized by statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the trust. Funds of trust members are held
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and invested in the name of the trust for the benefit of each member. Each member’s funds are restricted for the payment of retirement benefits of that member’s employees. Trust funds are not subject to the claims of general creditors of the School Department. The trust is authorized to make investments as directed by the TCRS Board of Trustees. The Washington County School Department may not impose any restrictions on investments placed by the trust on their behalf. Investment Balances. Assets of the TCRS, including the Stabilization Reserve Trust, are invested in the Tennessee Retiree Group Trust (TRGT). The TRGT is not registered with the Securities and Exchange Commission (SEC) as an investment company. The State of Tennessee has not obtained a credit quality rating for the TRGT from a nationally recognized credit ratings agency. The fair value of investment positions in the TRGT is determined daily based on the fair value of the pool’s underlying portfolio. Furthermore, TCRS had not obtained or provided any legally binding guarantees to support the value of participant shares during the fiscal year. There are no restrictions on the sale or redemption of shares. Investments are reported at fair value or amortized cost, which approximates fair value. Securities traded on a national exchange are valued at the last reported sales price. Investment income consists of realized and unrealized appreciation (depreciation) in the fair value. Securities and securities transactions are recorded in the financial statements on a trade-date basis. The fair value of assets of the TRGT held at June 30, 2019, represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Assets held are categorized for fair value measurement within the fair value hierarchy established by GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the asset and give the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). • Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets that can be accessed at the measurement date. • Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; assets or liabilities that have a bid-ask spread price in an inactive dealer market, brokered market and principal-to-principal market; and Level 1 assets or liabilities that are adjusted. • Level 3 - Valuations derived from valuation techniques in which significant inputs are unobservable.
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Investments using the Net Asset Value (“NAV”) per share have no readily determinable fair value and have been determined using amortized cost, which approximates fair value. Where inputs used in the measurement of fair value fall into different levels of the hierarchy, fair value of the instrument in its entirety is categorized based on the lowest level input that is significant to the valuation. This assessment requires professional judgement and as such management of the TRGT developed a fair value committee that worked in conjunction with the plan’s custodian and investment professionals to make these valuations. All assets held were valued individually and aggregated into classes to be represented in the table below. Short-term securities generally include investments in money market-type securities reported at cost plus accrued interest. Equity and equity derivative securities classified in Level 1 are valued using last reported sales prices quoted in active markets that can be accessed at the measurement date. Equity and equity derivative securities classified in Level 2 are securities whose values are derived daily from associated traded securities. Equity securities classified in Level 3 are valued with last trade data having limited trading volume. U.S. Treasury Bills, Bonds, Notes and Futures classified in Level 1 are valued using last reported sales prices quoted in active markets that can be accessed at the measurement date. Debt and debt derivative securities classified in Level 2 are valued using a bid-ask spread price from multiple independent brokers, dealers, or market principals, which are known to be actively involved in the market. Level 3 debt securities are valued using proprietary information, a single pricing source, or other unobservable inputs related to similar assets or liabilities. Real estate investments classified in Level 3 are valued using the last valuations provided by external investment advisors or independent external appraisers. Generally, all direct real estate investments are appraised by a qualified independent appraiser(s) with the professional designation of Member of the Appraisal Institute (“MAI”), or its equivalent, every three (3) years beginning from the acquisition date of the property. The appraisals are performed using generally accepted valuation approaches applicable to the property type. Investments in private mutual funds, traditional private equity funds, strategic lending funds and real estate funds that report using GAAP, the fair value, as well as the unfunded commitments, were determined using the prior quarter’s NAV, as reported by the fund managers, plus the current cash flows. These assets were then categorized by investment strategy. In instances where the fund investment reported using non-GAAP standards,
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the investment was valued using the same method, but was classified in Level 3. At June 30, 2019, the Washington County School Department had the following investments held by the trust on its behalf.
WeightedAverageMaturity Fair
Investment (days) Maturities ValueInvestments at Fair Value: U.S. Equity N/A N/A $ 29,020 Developed Market International Equity N/A N/A 13,106 Emerging Market International Equity N/A N/A 3,744 U.S. Fixed Income N/A N/A 18,723 Real Estate N/A N/A 9,361 Short-term Securities N/A N/A 936 Investments at Amortized Cost using the NAV: Private Equity and Strategic Lending N/A N/A 18,723
Total $ 93,613
Amortized
Quoted CostPrices inActive Significant
Markets for Other SignificantIdentical Observable Unobservable
Fair Value Assets Inputs InputsInvestment by Fair Value Level 6-30-19 (Level 1) (Level 2) (Level 3) NAV
U.S. Equity $ 29,020 $ 29,020 $ 0 $ 0 $ 0Developed Market International Equity 13,106 13,106 0 0 0Emerging Market International Equity 3,744 3,744 0 0 0U.S. Fixed Income 18,723 0 18,723 0 0Real Estate 9,361 0 0 9,361 0Short-term Securities 936 0 936 0 0Private Equity and Strategic Lending 18,723 0 0 0 18,723
Total $ 93,613 $ 45,870 $ 19,659 $ 9,361 $ 18,723
Fair Value Measurements Using
Risks and Uncertainties. The trust’s investments include various types of investment funds, which in turn invest in any combination of stock, bonds and other investments exposed to various risks, such as interest rate, credit, and market risk. Due to the level of risk associated with certain investment
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securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported for trust investments. Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Washington County School Department does not have the ability to limit trust investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Washington County School Department does not have the ability to limit the credit ratings of individual investments made by the trust. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of the county’s investment in a single issuer. Washington County School Department places no limit on the amount the county may invest in one issuer. Custodial Credit Risk. Custodial credit risk for investments is the risk that, in the event of a failure of the counterparty to a transaction, the county will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Pursuant to the trust agreement, investments are held in the name of the trust for the benefit of the Washington County School Department to pay retirement benefits of the School Department employees. For further information concerning the School Department’s investments with the TCRS Stabilization Reserve Trust, audited financial statements of the Tennessee Consolidated Retirement System may be obtained at https://comptroller.tn.gov/content/dam/cot/sa/advanced-search/disclaimer/2019/ag18092.pdf.
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B. Capital Assets
Capital assets activity for the year ended June 30, 2019, was as follows: Primary Government - Governmental Activities:
Balance Balance7-1-18 Increases Decreases 6-30-19
Capital Assets Not Depreciated:Land $ 7,684,954 $ 65,427 $ 0 $ 7,750,381Construction in Progress 13,031,012 17,724,401 0 30,755,413Total Capital Assets Not Depreciated $ 20,715,966 $ 17,789,828 $ 0 $ 38,505,794
Capital Assets Depreciated:Buildings and Improvements $ 47,780,731 $ 405,172 $ 0 $ 48,185,903Infrastucture 51,900,785 768,890 0 52,669,675Other Capital Assets 25,146,767 1,387,880 (530,019) 26,004,628Total Capital Assets Depreciated $ 124,828,283 $ 2,561,942 $ (530,019) $ 126,860,206
Less Accumulated Depreciation For:Buildings and Improvements $ 16,964,426 $ 1,263,233 $ 0 $ 18,227,659Infrastucture 28,710,785 1,301,444 0 30,012,229Other Capital Assets 18,138,824 1,283,863 (503,834) 18,918,853
Total Accumulated Depreciation $ 63,814,035 $ 3,848,540 $ (503,834) $ 67,158,741
Total Capital Assets Depreciatied, Net $ 61,014,248 $ (1,286,598) $ (26,185) $ 59,701,465
Governmental Activities Capital Assets, Net $ 81,730,214 $ 16,503,230 $ (26,185) $ 98,207,259
Depreciation expense was charged to functions of the primary government as follows:
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Governmental Activities:
General Government $ 298,769Finance 10,053Administration of Justice 3,125Public Safety 1,567,050Public Health and Welfare 174,974Social, Cultural, and Recreational Services 128,211Agriculture and Natural Resources 2,914Highways/Public Works 1,663,444
Total Depreciation Expense - Governmental Activities $ 3,848,540
Discretely Presented Washington County School Department - Governmental Activitites:
Balance Balance7-1-18 Increases Decreases 6-30-19
Capital Assets Not Depreciated:Land $ 2,548,284 $ 0 $ 0 $ 2,548,284Total Capital Assets Not Depreciated $ 2,548,284 $ 0 $ 0 $ 2,548,284
Capital Assets Depreciated:Buildings and Improvements $ 126,000,341 $ 14,998 $ 0 $ 126,015,339Other Capital Assets 13,975,032 521,883 (586,143) 13,910,772Total Capital Assets Depreciated $ 139,975,373 $ 536,881 $ (586,143) $ 139,926,111
Less Accumulated Depreciated For:Buildings and Improvements $ 56,656,275 $ 3,967,859 $ 0 $ 60,624,134Other Capital Assets 8,672,572 869,427 (483,929) 9,058,070
Total Accumulated Depreciation $ 65,328,847 $ 4,837,286 $ (483,929) $ 69,682,204
Total Capital Assets Depreciated, Net $ 74,646,526 $ (4,300,405) $ (102,214) $ 70,243,907
Governmental Activities Capital Assets, Net $ 77,194,810 $ (4,300,405) $ (102,214) $ 72,792,191
Depreciation expense was charged to functions of the discretely presented Washington County School Department as follows:
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Governmental Activities:
Instruction $ 3,967,859Support Services 868,251Operation of Non-instructional Services 1,176
Total Depreciation Expense - Governmental Activities $ 4,837,286
C. Construction Commitments
At June 30, 2019, the Highway/Public Works Fund had uncompleted construction contracts of approximately $874,900 for road and bridge construction. The General Capital Projects Fund had uncompleted construction contracts of approximately $91,355 for county park grading, $538,110 for courthouse renovations, $404,000 for health department renovations, $236,366 for waterline development, and $2,936,939 for school construction. Funding for the future expenditures of the Highway/Public Works Fund and the General Capital Projects Fund is being provided by available fund balance and is also expected to come from future local taxes.
D. Interfund Receivables, Payables, and Transfers
The composition of interfund balances as of June 30, 2019, was as follows:
Due to/from Other Funds:
Receivable Fund Payable Fund Amount
Primary Government: General Nonmajor governmental $ 372,556 Highway/Public Works " 262 General Capital Projects General Debt Service 19,873 " Nonmajor governmental 1,656 Nonmajor governmental General 1,541
Discretely Presented School Department: General Purpose School Nonmajor governmental 19,978 Nonmajor governmental General Purpose School 460
These balances resulted from the time lag between the dates that interfund goods and services are provided or reimbursable expenditures occur and payments between funds are made.
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Interfund Transfers: Interfund transfers for the year ended June 30, 2019, consisted of the
following amounts:
Primary Government
Transfers InGeneral
DebtService
Transfers Out Fund
General Fund $ 49,000Highway/Public Works 107,347Nonmajor governmental funds 32,000
Total $ 188,347
Transfers to the General Debt Service Fund represent contributions from various funds toward debt service principal and interest requirements.
Discretely Presented Washington County School Department
Transfers InGeneralPurposeSchool
Transfers Out Fund
Nonmajor governmental funds $ 40,479
Total $ 40,479
Transfers to the General Purpose School Fund represent indirect costs from nonmajor governmental funds Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and to use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.
E. Operating Lease
The discretely presented Washington County School Department rents two vehicles. The rent expenditures for the year ended June 30, 2019, were $8,398 for the governmental funds. The lease agreements allow for
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termination at any point in time with early termination charges made. The future minimum lease payments for these leases are as follows:
YearEndingJune 30 Amount
2020 $ 3,499
Total $ 3,499
F. Long-term Debt
Primary Government General Obligation Bonds, Notes, Other Loans, and Nonexchange Financial Guarantee General Obligation Bonds - Washington County issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities for the primary government and the discretely presented School Department. In addition, general obligation bonds have been issued to refund other general obligation bonds. General obligation bonds are direct obligations and pledge the full faith, credit, and taxing authority of the government. General obligation bonds outstanding were issued for original terms of up to 21 years. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. All bonds included in long-term debt as of June 30, 2019, will be retired from the General Debt Service Fund and Rural Debt Service Fund. Direct Borrowing and Direct Placements - Washington County issues other loans to provide funds for the acquisition and construction of major capital facilities for the primary government and the discretely presented School Department. Capital outlay notes are also issued to fund capital facilities and other capital outlay purchases, such as equipment. Capital outlay notes, and other loans are direct obligations and pledge the full faith, credit, and taxing authority of the government. Capital outlay notes outstanding were issued for an original term of 12 years. There were no other loans outstanding at June 30, 2019. Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements decrease over the term of the debt. All notes included in long-term debt as of June 30, 2019, will be retired from the General Debt Service Fund. Nonexchange Financial Guarantee – Washington County has recorded a liability for a proportionate share of outstanding Aerospace Park Bonds issued by the Tri-Cities Airport Authority. The authority is a joint venture discussed in Note V.E. It is considered more likely than not that net revenues
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will not be generated by the aerospace park project in the foreseeable future. Consequently, it is expected that members of the joint venture will be required to pay this debt of the Airport Authority based on guaranty agreements entered into by the members. The total amount of bonds issued was $8,500,000 and Washington County’s proportionate share of the guarantee is 22.5 percent, or $1,912,500 of the original principal, plus interest. The bonds mature serially each May 1, beginning in 2019 and ending in 2038. Interest rates vary from 3 percent to 4.5 percent with payments due semi-annually. General obligation bonds, capital outlay notes, and nonexchange financial guarantee outstanding as of June 30, 2019, for governmental activities are as follows:
OriginalInterest Final Amount Balance
Type Rate Maturity of Issue 6-30-19
General Obligation Bonds 2 to 5 % 6-1-37 $ 37,725,000 $ 33,710,000General Obligation Bonds - Refunding 1.7 to 4 6-1-37 130,275,000 122,040,000Direct Borrowing and Direct Placement: Capital Outlay Notes 2 to 3 7-15-25 5,520,000 2,560,000Nonexchange Financial Guarantee 3 to 4.5 5-1-38 1,912,500 1,408,878
The annual requirements to amortize all general obligation bonds and notes, outstanding as of June 30, 2019, including interest payments are presented in the following tables: Year EndingJune 30 Interest Total
2020 $ 7,300,000 $ 5,667,824 $ 12,967,8242021 7,265,000 5,415,285 12,680,2852022 7,490,000 5,158,161 12,648,1612023 7,740,000 4,854,687 12,594,6872024 7,375,000 4,539,533 11,914,5332025-2029 39,465,000 17,999,782 57,464,7822030-2034 46,900,000 9,627,625 56,527,6252035-2037 32,215,000 1,995,850 34,210,850
Total $ 155,750,000 $ 55,258,747 $ 211,008,747
BondsPrincipal
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Year EndingJune 30 Interest Total
2020 $ 450,000 $ 66,125 $ 516,1252021 460,000 52,475 512,4752022 475,000 39,638 514,6382023 310,000 29,825 339,8252024 315,000 21,225 336,2252025-2026 550,000 16,650 566,650
Total $ 2,560,000 $ 225,938 $ 2,785,938
Notes - Direct PlacementPrincipal
Washington County has decided to accelerate payments on its obligation under the nonexchange financial guarantee for the Tri-Cities Airport Authority. Accordingly, the Authority has established an irrevocable escrow account with the bond paying agent. Payments by the county are deposited to the account and used to pay Washington County’s portion of the bond principal and interest as it becomes due. During the fiscal year ended June 30, 2019, Washington County deposited funds totaling $518,072 into the escrow account and paid $41,421 directly to the Airport Authority in relation to the bond and interest requirements. The balance in the escrow account, including investment earnings, has been reduced from the outstanding bond balance in determining the county’s liability for nonexchange financial guarantees at June 30, 2019. The nonexchange financial guarantee will be retired from the General Fund. The amount of the liability reported at June 30, 2019 is management’s best estimate of the discounted present value of the future outflows expected to be incurred as a result of the guarantee. Balances in the escrow account accumulate investment earnings at rates which are not expected to vary materially from the interest rates on the bonds. The following tables reflect the annual requirements on the outstanding bonds and reconciles those amounts with the liability reflected for nonexchange financial guarantees.
Principal and Interest Requirements on Outstanding Aerospace Park Bonds:
Year EndingJune 30 Interest Total
2020 $ 70,000 $ 67,750 $ 137,7502021 70,000 64,600 134,6002022 75,000 61,450 136,4502023 75,000 58,075 133,0752024 80,000 54,700 134,7002025-2029 455,000 223,387 678,3872030-2034 535,000 143,900 678,9002035-2038 495,000 45,044 540,044
Total $ 1,855,000 $ 718,906 $ 2,573,906
Principal
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Calculation of Nonexchange Financial Guarantee Liability:
Principal Balance of Outstanding Aerospace Park Bonds, 6-30-19 $ 1,855,000Add: Interest Accrued on Bonds 11,292Less: Funds accumulated in Airport Authority's Escrow Account (457,414)Nonexchange Financial Guarantee Balance, 6-30-19 $ 1,408,878
There is $6,862,845 available in the debt service funds to service long-term debt. Bonded debt per capita totaled $1,253, for residents living inside the Johnson City school district and $1,280 for residents living outside the Johnson City school district, based on the 2010 federal census. Total debt per capita, including, bonds, notes, nonexchange financial guarantee, and unamortized premium on debt, totaled $1,402, for residents living inside the Johnson City school district and $1,429 for residents living outside the Johnson City school district based on the 2010 federal census. During the year, the School Department contributed $260,000 to the county Rural Debt Service Fund to be applied toward the retirement of school related debt. As described in Note IV.H., the School Department has pledged a portion of its basic education capital outlay funds revenues toward the retirement of the rural school bonds issued in 2013. At June 30, 2019, the amount outstanding on these bonds totaled $1,630,000. Changes in Long-term Debt Long-term debt activity for the year ended June 30, 2019, was as follows:
Governmental Activities: Other
Notes - Loans -Direct Direct
Bonds Placement Placement
Balance, July 1, 2018 $ 157,790,000 $ 3,125,000 $ 4,150,000Reductions (2,040,000) (565,000) (4,150,000)
Balance, June 30, 2019 $ 155,750,000 $ 2,560,000 $ 0
Balance Due Within One Year $ 7,300,000 $ 450,000 $ 0
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NonexchangeFinancial Guarantee
Balance, July 1, 2018 $ 0Additions 2,000,382Reductions (591,504)
Balance, June 30, 2019 $ 1,408,878
Balance Due Within One Year $ 0
Analysis of Noncurrent Liabilities for Debt Presented on Exhibit A:
Total Noncurrent Liabilities - Debt, June 30, 2019 $ 159,718,878Less: Balance Due Within One Year - Debt (7,750,000)Add: Unamortized Premium on Debt 14,354,489
Noncurrent Liabilities - Due in More Than One Year - Debt - Exhibit A $ 166,323,367
Since Washington County has made advance payments for the nonexchange financial guarantee, there is no amount due on that agreement within one year.
G. Long-term Obligations
Changes in Long-term Obligations
Long-term obligations activity for the year ended June 30, 2019, was as follows: Governmental Activities:
Balance, July 1, 2018 $ 1,964,167 $ 4,862,829 $ 221,046Additions 1,783,339 528,811 1,361,175Reductions (1,680,865) (1,386,891) (1,582,221)
Balance, June 30, 2019 $ 2,066,641 $ 4,004,749 $ 0
Balance Due Within One Year $ 661,325 $ 0 $ 0
Compensated Absences
Other Post- Net PensionLiabilityEmployment
Benefits Agent Plan
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Analysis of Other Noncurrent Liabilities Presented on Exhibit A:
Total Other Noncurrent Liabilities, June 30, 2019 $ 6,071,390Less: Balance Due Within One Year - Other (661,325)
Other Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 5,410,065
Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General, Solid Waste/Sanitation and Highway/Public Works funds.
Discretely Presented Washington County School Department
Changes in Long-term Obligations Long-term obligations activity for the discretely presented Washington County School Department for the year ended June 30, 2019, was as follows:
Governmental Activities: OtherCompensated Postemployment Retirement
Absences Benefits Incentive
Balance, July 1, 2018 $ 194,812 $ 7,007,020 $ 6,997Additions 270,020 1,167,236 29,066Reductions (276,485) (586,275) (24,760)
Balance, June 30, 2019 $ 188,347 $ 7,587,981 $ 11,303
Balance Due Within One Year $ 188,347 $ 0 $ 11,303
Net PensionLiability
Agent Plan
Balance, July 1, 2018 $ 108,726Additions 669,520Reductions (778,246)
Balance, June 30, 2019 $ 0
Balance Due Within One Year $ 0
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Total Noncurrent Liabilities, June 30, 2019 $ 7,787,631Less: Balance Due Within One Year (199,650)
Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 7,587,981
Compensated absences, other postemployment benefits, and retirement incentives will be paid from the employing funds, primarily the General Purpose School Fund.
H. Pledges of Future Revenues – Discretely Presented Washington
County School Department
The Washington County School Department has pledged $260,000 annually of its restricted basic education plan funds received from the state toward the retirement of rural school bonds issued by Washington County in 2013. Total principal and interest remaining on the debt is $1,802,675 with annual requirements ranging from $259,525 in the next fiscal year to $258,825 in the final year of 2026.
I. On-Behalf Payments – Discretely Presented Washington County
School Department
The State of Tennessee pays health insurance premiums for retired teachers on-behalf of the Washington County School Department. These payments are made by the state to the Local Education Group Insurance Plan. The plan is administered by the State of Tennessee and reported in the state’s Comprehensive Annual Financial Report. Payments by the state to the Local Education Group Insurance Plan for the year ended June 30, 2019, were $262,284. The School Department has recognized these on-behalf payments as revenues and expenditures in the General Purpose School Fund.
V. OTHER INFORMATION
A. Risk Management
Primary Government The county is exposed to various risks related to general liability, property, and casualty losses. The county decided it was more economically feasible to join a public entity risk pool instead of purchasing commercial insurance for general liability, property, and casualty coverage. The county joined the Local Government Property and Casualty Fund (LGPCF), which is a public entity risk pool established by the Tennessee County Services Association, an association of member counties. The county pays an annual premium to the LGPCF for its general liability, property, and casualty insurance coverage.
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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. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. Washington County decided it was more economically feasible to join a public entity risk pool as opposed to purchasing commercial insurance for workers’ compensation coverage. The county joined the Local Government Workers’ Compensation Fund (LGWCF). The county pays an annual premium to the LGWCF for its workers’ compensation coverage. The creation of the LGWCF provides for it to be self-sustaining through member premiums. Washington County has chosen to establish the Employee Insurance – Health Fund to account for its self-insured employee health program. The Employee Insurance - Health Fund is accounted for as an Internal Service Fund where assets are set aside for claim settlements. The county has obtained excess risk insurance coverage with an aggregate individual stop loss limit of $150,000 per person for covered claims and an annual aggregate maximum liability amount of $1,000,000. All full-time employees of the primary government are eligible to participate. A premium charge is allocated to each fund that accounts for full-time employees. Liabilities of the self-insurance fund are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. This fund establishes claims liabilities based on estimates of the ultimate cost of claims that have been reported but not settled, and of claims that have been incurred but not reported. Claims liabilities include specific, incremental claim adjustment expenditures/expenses, if any. In addition, estimated recoveries, if any, on settled claims have been deducted from the liability of unpaid claims. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past two fiscal years are as follows: Employee Insurance - Health Fund
Beginningof Fiscal Current-year Balance at
Year Claims and FiscalLiability Estimates Payments Year-end
2017-2018 $ 357,629 $ 4,625,579 $ (4,382,557) $ 600,6512018-2019 600,651 4,292,430 (4,416,656) 476,425
Current year claims and estimates, along with payments, are presented net of excess risk insurance recovery of $659,411.
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Discretely Presented Washington County School Department The School Department participates in the Tennessee Risk Management Trust (TN-RMT), which is a public entity risk pool created under the auspices of the Tennessee Governmental Tort Liability Act to provide governmental insurance coverage. The School Department pays annual premiums to the TN-RMT for its general liability, property, casualty, and workers’ compensation insurance coverage. The creation of TN-RMT provides for it to be self-sustaining through member premiums. The School Department participates in the Local Education Group Insurance Fund (LEGIF), a public entity risk pool established to provide a program of health insurance coverage for employees of local education agencies. In accordance with Section 8-27-301, TCA, all local education agencies are eligible to participate. The LEGIF is included in the Comprehensive Annual Financial Report of the State of Tennessee, but the state does not retain any risk for losses by this fund. Section 8-27-303, TCA, provides for the LEGIF to be self-sustaining through member premiums.
B. Accounting Changes
Provisions of Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations; Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowing and Direct Placements became effective for the year ended June 30, 2019. In addition, Washington County early implemented the provisions of GASB Statement No. 89, Accounting for Interest Costs Incurred Before the End of a Construction Period. GASB Statement No. 83, Certain Asset Retirement Obligations establishes accounting and reporting requirements for certain asset retirement obligations (AROs) associated with tangible capital assets. The scope of this statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, and expense/expenditures. In addition, this standard establishes note disclosure requirements for AROs. GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and Direct Placements addresses note disclosure requirements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should report when disclosing information related to debt. These required disclosures include direct borrowings and direct placements, unused lines of credit, assets pledged as collateral for debt, terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant acceleration clauses.
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GASB Statement No. 89, Accounting for Interest Costs Incurred Before the End of a Construction Period amends paragraphs 5 through 22 of GASB Statement No. 62. This standard establishes that interest cost incurred before the end of a construction period should be recognized as an expense/expenditure. The changes adopted to conform with this standard are to be applied prospectively.
C. Contingent Liabilities
On February 20, 2014, Sullivan County issued $2,975,000 of Airport Revenue and Tax Refunding Bonds for the Tri-Cities Airport (a joint venture described in Note V.E.). Washington County is contingently liable for 20 percent of the principal and interest on these bonds in the event revenues of the Airport Authority are not sufficient to cover the payments. The other governments participating in the joint venture are contingently liable for the remaining 80 percent of the principal and interest requirements. Final maturity for the bonds is May 1, 2023. The outstanding balance of the bonds was $1,415,000 at June 30, 2019. On March 29, 2018, Tri-Cities Regional Airport issued Aerospace Park bonds in the amount of $8,500,000. Washington County is liable for 22.5 percent of the principal and interest on these bonds in the event revenues of the Airport Authority are not sufficient to cover the payments. Washington County has recorded a liability for its share of these Aerospace Park bonds as discussed in Note IV.E. The county is involved in several pending lawsuits. Based on letters from attorneys, management estimates that the potential claims not covered by insurance resulting from such litigation would not materially affect the financial statements.
D. Change in Administration
On July 2, 2018, Bobbye Webb left the Office of Director of Accounts and Budgets and was succeeded by Mitch Meredith. On August 31, 2018, Daniel Eldridge left the Office of County Mayor and was succeeded by William Grandy; Ginger Jilton left the Office of Register of Deeds and was succeeded by Teresa Bowman; Karen Guinn left the Office of Circuit, General Sessions, and Juvenile Courts Clerk and was succeeded by Brenda Downs; and Monty Treadway left the Office of Trustee and was succeeded by Rick Storey. On October 3, 2018, Washington County School Department appointed Interim Director of Schools William Flanary to the Office of Director of Schools.
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E. Joint Ventures The First Judicial District Drug Task Force (DTF) is a joint venture formed by an interlocal agreement between the district attorney general of the First
Judicial District; Carter, Unicoi, and Washington counties; and various cities within these counties. The purpose of the DTF is to provide multi-jurisdictional law enforcement to promote the investigation and prosecution of drug-related activities. Funds for the operations of the DTF come primarily from federal grants, drug fines, and the forfeiture of drug-related assets to the DTF. The DTF is overseen by the district attorney general and is governed by a board of directors including the district attorney general, sheriffs, and police chiefs of participating law enforcement agencies within each judicial district. Washington County made no contributions to the DTF for the year ended June 30, 2019. The Tri-Cities Regional Airport is a joint venture in which Washington County participates, along with Sullivan County and the cities of Kingsport; Johnson City; Bristol, Tennessee; and Bristol, Virginia. The airport is governed by a 12-member board (the Tri-Cities Regional Airport Authority) comprising three members appointed by Washington County and nine members appointed by the other participating governments. Funding for the Airport Authority is provided primarily by revenues generated from airport services and by capital grants from the federal and state governments. Washington County is contingently liable for certain debt issued by the Airport Authority and by Sullivan County for the benefit of the Airport Authority as discussed in Note V.C., Contingent Liabilities. The Upper East Tennessee Juvenile Detention Center was formed through a cooperative agreement between Washington County and the counties of Carter, Greene, Hawkins, Johnson, Sullivan, and Unicoi for the operation of a program to divert youth from commitment to the Department of Correction facilities. This program is governed by a board of directors designated by the counties. The board of directors has contracted with ElyJenn Health Services, LLC, to undertake the management of this program. Operation costs to the counties are allocated according to percentages based on population. Washington County’s participation cost percentage is 23.4 percent. The counties also pay a daily fee for individuals from their counties using the facility. Johnson City and Washington County, Tennessee, jointly own an animal shelter operated by the Washington County‐Johnson City Animal Control Center. The Animal Control Center is governed by a four-member board comprising two members appointed by Washington County and two members appointed by Johnson City. The county is responsible for funding 50 percent of any deficits from operations. Washington County contributed $190,000 to the operations during the fiscal year ended June 30, 2019.
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The Washington County‐Johnson City Emergency Medical Services, Inc. ‐ Ambulance Division receives revenue from Washington County and Johnson City, as well as patient billings. The Board of Directors comprise nine members including: the City Manager of the City of Johnson City, the County Mayor of Washington County; the Mayor of the Town of Jonesborough; the Administrator/CEO of Mountain States Health Alliance; one member selected by the Johnson City Commission and ratified by the Washington County Emergency Rescue Services; the chairman of the City County Liaison Committee; the EMS Medical Director; one resident of Johnson City selected by the Johnson City Commission; and one resident of Washington County selected by the county commission. The county contributed $1,762,400 to the operations during the fiscal year ended June 30, 2019. The Washington County Economic Development Council receives revenue from Washington County, Johnson City, Jonesborough, as well as investors. The Development Council is governed by a nine member committee comprised of three members appointed by Washington County and six members appointed by participating entities. Washington County is responsible for at least 30 percent of the operations of the Washington County Economic Development Council. The county contributed $170,706 to the operations during the fiscal year ended June 30, 2019. Washington County does not have an equity interest in any of the above-noted joint ventures. Complete financial statements for the First Judicial District Drug Task Force, Tri-Cities Regional Airport, Upper East Tennessee Juvenile Detention Center, Washington County‐Johnson City Animal Control Center, Washington County‐Johnson City Emergency Medical Services, Inc., and Washington County Economic Development Council can be obtained from their respective administrative offices at the following addresses:
Administrative Offices:
Office of District Attorney General First Judicial District Drug Task Force P.O. Box 38 Jonesborough, TN 37659 Tri-Cities Regional Airport 2525 Highway 75, Suite 301 Blountville, TN 37617 Upper East Tennessee Juvenile Detention Center 307 Wesley Street Johnson City, TN 37601
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Washington County – Johnson City Animal Control Center 3411 North Roan Street Johnson City, TN 37601 Washington County – Johnson City Emergency Medical Services, Inc. 296 Wesley Street
Johnson City, TN 37601 Washington County Economic Development Council 300 East Main Street #406 Johnson City, TN 37601
F. Jointly Governed Organization The East Tennessee Regional Agribusiness Marketing Authority was established through Title 64 of Tennessee Code Annotated, (TCA), and includes the counties of Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sullivan, Unicoi, and Washington. The purpose of the authority is to establish and operate a market for agricultural products of the region through a food distribution center, and to further the economy and growth of the region served by the authority by developing, marketing, and promoting facilities for warehousing, distribution, light manufacturing, and agribusiness purposes. The authority is governed by a Board of Directors consisting of the county mayors of each county or the county mayor’s designee and one nonvoting member representing the Tennessee Department of Agriculture and the University of Tennessee’s Agriculture Extension Service. An executive committee, consisting of the chairman, vice-chairman, secretary, and treasurer of the Board of Directors, along with the center manager as an ex-officio member, is in charge of the daily operation of the center. The East Tennessee Railway Authority was established through Title 7 of Tennessee Code Annotated (TCA) and includes Washington County and the City of Johnson City. The purpose of the authority is to facilitate upgrades to railway lines in the county and city. The authority is governed by a Board of Directors pursuant to Section 7-56-203, TCA and includes the mayor of Washington County and Johnson City as well as an additional member appointed from each governing body of the members. Washington County is accounting for the operations of the authority through the Other Agency Fund. Washington County is a participant in the joint governance of the Alliance for Business and Training (AB&T), which administers funds received under the Workforce Innovation and Opportunity Act for the Northeast Tennessee Local Workforce Development Area. An interlocal consortium agreement between Carter, Greene, Hancock, Hawkins, Johnson, Sullivan, Unicoi, and
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Washington counties established the Northeast Tennessee Workforce Development Board and the governing structure of AB&T. The county mayors represent each county in the consortium. The Sullivan County Mayor serves as the chief local elected county official of the consortium by the majority approval of the local elected county officials in the consortium agreement and approves appointments of board members of the workforce development board following a nomination process specified in the agreement. The board has no financial activity but provides oversight for workforce development programs of the Development Area. Those programs are funded by grants passed through the state Department of Labor to AB&T. Mayors of the participating counties, along with four members jointly appointed by the mayors serve as the governing board of AB&T. The consortium agreement calls for any liability for disallowed costs of the grant programs to be shared by member counties of the consortium based on each county’s percent of the population of the local workforce development area. However, that contingent liability is to be mitigated by $3 million of insurance coverage provided by AB&T to indemnify the counties pursuant to the consortium agreement. Complete financial information for the Alliance for Business and Training can be obtained from the following address.
Alliance for Business and Training 386 Hwy 91 PO Box 249 Elizabethton, TN 37643
G. Retirement Commitments
1. Tennessee Consolidated Retirement System (TCRS)
Primary Government General Information About the Pension Plan Plan Description. Employees of Washington County and non-certified employees of the discretely presented Washington County School Department are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The primary government employees comprise 67.03 percent, the non-certified employees of the discretely presented School Department comprise 32.97 percent of the plan based on contribution data. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury
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Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with five years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available to vested members at age 55. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions plus any accumulated interest. Employees Covered by Benefit Terms. At the measurement date of June 30, 2018, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 666Inactive Employees Entitled to But Not Yet Receiving Benefits 873Active Employees 942
Total 2,481
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Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees are noncontributory. Washington County makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2019, the employer contribution for Washington County was $2,676,264 based on a rate of 9.76 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept Washington 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) Washington County’s net pension liability (asset) was measured as of June 30, 2018, and the total pension liability (asset) used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability as of the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.5%Salary Increases Graded Salary Ranges from 8.72%
to 3.44% Based on Age, Including Inflation, Averaging 4%
Investment Rate of Return 7.25%, Net of Pension Plan Investment Expenses, Including Inflation
Cost of Living Adjustment 2.25%
Mortality rates were based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience.
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The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target allocation percentage and by adding expected inflation of 2.5 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major class are summarized in the following table:
PercentageLong-termExpected PercentageReal Rate Target
Asset Class of Return Allocations
U.S. Equity 5.69 % 31 %Developed Market International Equity 5.29 14Emerging Market International Equity 6.36 4Private Equity and Strategic Lending 5.79 20U.S. Fixed Income 2.01 20Real Estate 4.32 10Short-term Securities 0.00 1
Total 100 %
The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from Washington 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
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future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Changes in the Net Pension Liability (Asset)
Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)
(a) (b) (a)-(b)
Balance, July 1, 2017 $ 102,858,365 $ 102,528,593 $ 329,772
Changes for the Year: Service Cost $ 2,246,506 $ 0 $ 2,246,506 Interest 7,475,372 0 7,475,372 Differences Between Expected and Actual Experience (1,352,707) 0 (1,352,707) Changes in Assumptions 0 0 0 Contributions-Employer 0 2,267,322 (2,267,322) Contributions-Employees 0 0 0 Net Investment Income 0 8,435,284 (8,435,284) Benefit Payments, Including Refunds of Employee Contributions (3,992,582) (3,992,582) 0 Administrative Expense 0 (86,480) 86,480 Other Changes 0 0 0Net Changes $ 4,376,589 $ 6,623,544 $ (2,246,955)
Balance, June 30, 2018 $ 107,234,954 $ 109,152,137 $ (1,917,183)
Increase (Decrease)
Allocation of Agent Plan Changes in the Net Pension Liability (Asset)
Plan NetTotal Fiduciary Pension
Pension Net LiabilityLiability Position (Asset)
Primary Government 67.03% $ 71,879,590 $ 73,164,677 $ (1,285,088)
School Department 32.97% 35,355,364 35,987,460 (632,095)
Total $ 107,234,954 $ 109,152,137 $ (1,917,183)
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the net pension liability (asset) of Washington County calculated using the discount rate of 7.25 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is one percentage point
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lower (6.25 percent) or one percentage point higher (8.25 percent) than the current rate:
Current1% Discount 1%
Decrease Rate Increase6.25% 7.25% 8.25%
Primary Government $ 8,087,766 $ 1,285,088 $ 9,104,810School Department 3,978,124 632,095 4,478,377
Total Net Pension Liability $ 12,065,890 $ 1,917,183 $ 13,583,187
Pension Expense (Income) and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense or Negative Pension Expense. For the year ended June 30, 2019, Washington County recognized pension expense of $2,030,695. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, Washington 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 $ 1,041,993 $ 1,774,223Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 441,600Changes in Assumptions 1,418,196 0Contributions Subsequent to the Measurement Date of June 30, 2018 (1) 2,676,264 N/A
Total $ 5,136,453 $ 2,215,823
(1) The amount shown above for “Contributions Subsequent to
the Measurement Date of June 30, 2018,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period.
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Allocation of Agent Plan Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred DeferredOutflows of Inflows ofResources Resources
Primary Government $ 3,446,730 $ 1,485,266
School Department 1,689,723 730,557
Total $ 5,136,453 $ 2,215,823
Amounts reported as deferred outflows of resources, with the exception of contributions subsequent to the measurement date, and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ending Primary SchoolJune 30 Government Department Total
2020 $ 637,722 $ 314,660 $ 952,3822021 226,720 111,516 338,2362022 (378,169) (186,010) (564,179)2023 (324,471) (159,597) (484,068)2024 0 0 0Thereafter 0 0 0
In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense. Payable to the Pension Plan At June 30, 2019, Washington County reported a payable of $135,656 for the outstanding amount of contributions due to the pension plan at year end.
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Discretely Presented Washington County School Department Non-certified Employees General Information About the Pension Plan Plan Description. As noted above under the primary government, employees of Washington County and non-certified employees of the discretely presented Washington County School Department are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The primary government employees comprise 67.03 percent and the non-certified employees of the discretely presented School Department comprise 32.97 percent of the plan based on contribution data. Certified Employees Teacher Retirement Plan General Information About the Pension Plan Plan Description. Teachers of the Washington County School Department with membership in the TCRS before July 1, 2014, are provided with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan is closed to new membership. Teachers with membership in the TCRS after June 30, 2014, are provided with pensions through a legally separate plan referred to as the Teacher Retirement Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members are eligible to retire with an unreduced benefit at age 65 with five years of service credit or pursuant to the rule of 90 in which the member’s age and service credit total 90. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 60 or
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pursuant to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. Members who leave employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Retirement Plan, benefit terms and conditions, including COLA, can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly or by automatic cost controls set out in law. Teachers are required to contribute five percent of their salary to the plan. The Local Education Agencies (LEAs) make employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. Per the statutory provisions governing TCRS, the employer contribution rate cannot be less than four percent, except in years when the maximum funded level, approved by the TCRS Board of Trustees, is reached. By law, employer contributions for the Teacher Retirement Plan are required to be paid. The TCRS may intercept the state shared taxes of the sponsoring governmental entity of the LEA if the required employer contributions are not remitted. Employer contributions for the year ended June 30, 2019, to the Teacher Retirement Plan were $87,581, which is 1.94 percent of covered payroll. In addition, employer contributions of $88,887, were made to the Pension Stabilization Reserve Trust Fund to fund future pension costs. The employer rate, when combined with member contributions and the stabilization reserve trust funds, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability.
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Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Liabilities (Assets). At June 30, 2019, the School Department reported a liability (asset) of ($183,784) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The School Department’s proportion of the net pension liability (asset) was based on the School Department’s share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2018, the School Department’s proportion was .405231 percent. The proportion as of June 30, 2017, was .449095 percent. Pension Expense. For the year ended June 30, 2019, the School Department recognized pension expense of $63,788. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the School Department reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred DeferredOutflows Inflows
of of Resources Resources
Difference Between Expected and Actual Experience $ 10,409 $ 7,320Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 10,381Changes in Assumptions 8,670 0Changes in Proportion of Net Pension Liability (Asset) 12,303 154LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 87,581 N/A
Total $ 118,963 $ 17,855
The School Department’s employer contributions of $87,581 reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase of net pension asset in the year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
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Year EndingJune 30 Amount
2020 $ (320)2021 (649)2022 (2,129)2023 5842024 1,967Thereafter 14,075
In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. Actuarial Assumptions. The total pension liability in the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.5%Salary Increases Graded Salary Ranges from 8.72%
to 3.44% Based on Age, Including Inflation, Averaging 4%
Investment Rate of Return 7.25%, Net of Pension Plan Investment Expenses, Including Inflation
Cost of Living Adjustment 2.25%
Mortality rates are based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target allocation percentage and by adding expected inflation of 2.5
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percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major class are summarized in the following table:
PercentageLong-termExpected PercentageReal Rate Target
Asset Class of Return Allocations
U.S. Equity 5.69 % 31 %Developed Market International Equity 5.29 14Emerging Market International Equity 6.36 4Private Equity and Strategic Lending 5.79 20U.S. Fixed Income 2.01 20Real Estate 4.32 10Short-term Securities 0.00 1
Total 100 %
The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from all the LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the School Department’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the School Department’s proportionate share of the net pension liability
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(asset) would be if it were calculated using a discount rate that is one percentage point lower (6.25 percent) or one percentage point higher (8.25 percent) than the current rate: School Department's Current Proportionate Share of 1% Discount 1% the Net Pension Decrease Rate Increase Liability (Asset) 6.25% 7.25% 8.25%
Net Pension Liability $ 28,413 $ (183,784) $ (340,122)
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report. Payable to the Pension Plan At June 30, 2019, the Washington County School Department reported a payable of $22,003 for the outstanding amount of contributions due to the pension plan at year end. Teacher Legacy Pension Plan General Information About the Pension Plan Plan Description. Teachers of the Washington County School Department with membership in the TCRS before July 1, 2014, are provided with pensions through the Teacher Legacy Pension Plan, a cost-sharing multiple-employer pension plan administered by the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30, 2014 but will continue providing benefits to existing members and retirees. Beginning July 1, 2014, the Teacher Retirement Plan became effective for teachers employed by LEAs after June 30, 2014. The Teacher Retirement Plan is a separate cost-sharing, multiple-employer defined benefit plan. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit terms and can be amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible to retire with an unreduced benefit at age 60 with five years of service credit or
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after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. A reduced early retirement benefit is available to vested members at age 55. Members are vested with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced ten percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to an automatic cost of living adjustment (COLA) after retirement. A COLA is granted each July for annuitants retired prior to the second of July of the previous year. The COLA is based on the change in the consumer price index (CPI) during the prior calendar year, capped at three percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Under the Teacher Legacy Pension Plan, benefit terms and conditions, including COLAs can be adjusted on a prospective basis. Moreover, there are defined cost controls and unfunded liability controls that provide for the adjustment of benefit terms and conditions on an automatic basis. Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Teachers are required to contribute five percent of their salaries. The Local Education Agencies (LEAs) make employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. By law, employer contributions for the Teacher Legacy Pension Plan are required to be paid. The TCRS may intercept the state shared taxes of the sponsoring governmental entity of the LEA if the required employer contributions are not remitted. Employer contributions by the Washington County School Department for the year ended June 30, 2019, to the Teacher Legacy Pension Plan were $2,765,056, which is 10.46 percent of covered payroll. The employer rate, when combined with member contributions, is expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
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Pension Liability (Assets). At June 30, 2019, the School Department reported a liability (asset) of ($2,764,989) for its proportionate share of the net pension liability (asset). The net pension liability (asset) was measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. The School Department’s proportion of the net pension liability (asset) was based on the School Department’s long-term share of contributions to the pension plan relative to the contributions of all participating LEAs. At the measurement date of June 30, 2018, the School Department’s proportion was .78575 percent. The proportion measured at June 30, 2017, was .793385 percent. Pension Expense. For the year ended June 30, 2019, the School Department recognized negative pension expense of $779,706. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the School Department reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred DeferredOutflows Inflows
of of Resources Resources
Difference Between Expected and Actual Experience $ 558,898 $ 3,730,188Changes in Assumptions 1,633,016 0Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 601,777Changes in Proportion of Net Pension Liability (Asset) 140,798 60,205LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 2,765,056 N/A
Total $ 5,097,768 $ 4,392,170
The School Department’s employer contributions of $2,765,056 reported as pension related deferred outflows of resources subsequent to the measurement date, will be recognized as an increase in net pension asset in the year ending June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
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Year EndingJune 30 Amount
2020 $ 581,7722021 (871,220)2022 (1,509,175)2023 (260,834)2024 0Thereafter 0
In the table above, positive amounts will increase pension expense, while negative amounts will decrease pension expense. Actuarial Assumptions. The total pension liability in the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.5%Salary Increases Graded Salary Ranges from 8.72%
to 3.44% Based on Age, Including Inflation, Averaging 4%
Investment Rate of Return 7.25%, Net of Pension Plan Investment Expenses, Including Inflation
Cost of Living Adjustment 2.25%
Mortality rates are based actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016, actuarial experience study. A blend of future capital market projections and historic market returns was used in a building-block method in which a best-estimate of expected future real rates of return (expected returns, net of pension plan investments expense and inflation) is developed for each major asset class. These best-estimates are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target allocation percentage and by adding expected inflation of 2.5
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percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major class are summarized in the following table:
PercentageLong-termExpected PercentageReal Rate Target
Asset Class of Return Allocations
U.S. Equity 5.69 % 31 %Developed Market International Equity 5.29 14Emerging Market International Equity 6.36 4Private Equity and Strategic Lending 5.79 20U.S. Fixed Income 2.01 20Real Estate 4.32 10Short-term Securities 0.00 1
Total 100 %
The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from all the LEAs will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of Net Pension Liability (Asset) to Changes in the Discount Rate. The following presents the School Department’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.25 percent, as well as what the School Department’s proportionate share of the net pension liability
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(asset) would be if it were calculated using a discount rate that is one percentage point lower (6.25 percent) or one percentage point higher (8.25 percent) than the current rate: School Department's Current Proportionate Share of 1% Discount 1% the Net Pension Decrease Rate Increase Liability (Asset) 6.25% 7.25% 8.25%
Net Pension Liability $ 21,314,273 $ (2,764,989) $ (22,687,223)
Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in a separately issued TCRS financial report.
Payable to the Pension Plan At June 30, 2019, the Washington County School Department reported a payable of $664,732 for the outstanding amount of contributions due to the pension plan at year end.
2. Deferred Compensation
Washington County offers its employees an optional deferred compensation plan pursuant to IRC Section 457. It is administered by the Treasurer of the State of Tennessee. The discretely presented Washington County School Department offers its employees an optional deferred compensation plan established pursuant to IRC Section 403(b). All costs of administering and funding these programs are the responsibility of plan participants. The Section 457 and Section 403(b) plan assets remain the property of the contributing employees and are not presented in the accompanying financial statements. IRC Section 457 and 403(b) establish participation, contribution, and withdrawal provisions for the plans.
Teachers hired after July 1, 2014, by the discretely presented Washington County School Department are required to participate in a hybrid pension plan consisting of a defined benefit portion, which is detailed in the pensions footnote above and is managed by the Tennessee Consolidated Retirement System, and a defined contribution portion which is placed into the state’s 401 (K) plan and is managed by the employee. The defined contribution portion of the plan requires that the School Department contribute five percent of each teacher’s salary into their deferred compensation plan. In addition, teachers are required to contribute a minimum of two percent of their salaries into this deferred compensation plan, unless they opt out of the employee portion. During the year the School
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Department contributed $236,710 and teachers contributed $347,347 to this deferred compensation pension plan.
H. Other Postemployment Benefits (OPEB) Primary Government Plan Description. Washington County participates in a self-insured postemployment benefits plan administered by Blue Cross Blue Shield for its retirees and their covered dependents. Employees are eligible for OPEB benefits if they retire at any age with at least 30 years of service or if they are over the age 60 and have at least 10 years of service. For accounting purposes, the plan is a single-employer defined benefit OPEB plan. Benefits are established and amended by the county commission. No assets are accumulated in a trust that meets the criteria of paragraph 4 of GASB Statement 75. Benefits Provided. The plan provides healthcare, dental, vision, and life insurance benefits for retirees until they are Medicare eligible. Spouse benefits are provided while the retiree is eligible for coverage. Surviving spouse benefits are not provided. The benefit terms provide for the county to pay 50 percent of medical premiums and to provide $5,000 of life insurance coverage. Benefits are established and amended by an insurance committee and approved by the county commission. Employees Covered by Benefit Terms At the measurement date of June 30, 2019, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 8Inactive Employees Entitled to But Not Yet Receiving Benefits 0Active Employees 477
Total 485
Total OPEB Liability The county’s total OPEB liability of $4,004,749 was measured as of June 30, 2019, and was determined by an actuarial valuation as of July 1, 2018, and updated to the measurement date.
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Actuarial Assumptions and other inputs. The total OPEB liability was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Payroll Growth Rate 2.5%Salary Increases 4.00%Discount Rate 3.50%Healthcare Cost Trend Rates 8% initially with an ultimate rate of 5% in 2024Retirees share of Benefit-related Cost 50% of medical premium and 100% of dental and
vision premium
The discount rate was based on the Bond Buyer’s 20 bond index. The mortality rates are from the RP-2000 Combined Fully Generational Mortality Table with projection scale BB. The actuarial assumptions were based on plan data and costs presented by the county with concurrence by the actuary. Changes in the Total OPEB Liability
Total OPEBLiability
Balance July 1, 2018 $ 4,862,829Changes for the Year: Service Cost $ 279,885 Interest 145,520 Changes in Benefit Terms (87,688) Difference between Expected and Actuarial Experience (1,228,511) Changes in Assumption and Other Inputs 103,406
Benefit Payments (70,692)Net Changes $ (858,080)
Balance June 30, 2019 $ 4,004,749
Changes in assumptions and other inputs reflect a change in the discount rate from 3.87 percent in 2018 to 3.5 percent in 2019. The mortality improvement scale was updated to Scale BB from Scale AA. Changes in benefit terms reflect effects of the county discontinuing direct supplements for employee dental and vision benefits.
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OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the county recognized OPEB expense of $198,728. At June 30, 2019, the county reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred DeferredOutflows Inflows
of of Resources Resources
Difference Between Expected and Actual Experience $ 0 $ 1,094,099Changes of Assumptions/Inputs 92,091 91,368Net Difference Between Projected and Actual Investments 0 0
Total $ 92,091 $ 1,185,467
Amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year EndingJune 30 Amount
2020 $ (138,989)2021 (138,989)2022 (138,989)2023 (138,989)2024 (138,989)Thereafter (398,431)
In the table shown above, positive amounts will increase OPEB expense while negative amounts will decrease OPEB expense. Sensitivity of the Total OPEB Liability to Changes in the Discount Rate. The following presents the total OPEB liability of the county calculated using the current discount rate, as well as what the OPEB liability would be if it was calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
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Current1% Discount 1%
Decrease Rate Increase2.5% 3.5% 4.5%
Total OPEB Liability $ 4,397,495 $ 4,004,749 $ 3,652,972
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate. The following presents the total OPEB liability of the county calculated using the current healthcare cost trend rat, as well as what the OPEB liability would be if it was calculated using a trend rate that is one percentage point lower or one percentage point higher than the current rate:
Current1% Trend 1%
Decrease Rate Increase(7% (8% (9%
decreasing decreasing decreasingto 4%) to 5%) to 6%)
Total OPEB Liability $ 3,590,910 $ 4,004,749 $ 4,496,993
Discretely Presented Washington County School Department The discretely presented Washington County School Department provides OPEB benefits to its retirees through a state administered public entity risk pool. For reporting purposes the plan is considered a single employer defined benefit OPEB plan based on criteria in Statement No. 75 of the Governmental Accounting Standards Board (GASB). The plan is funded on a pay-as-you-go basis and there are no assets accumulating in a trust that meets the criteria of paragraph 4 of GASB Statement No. 75. Plan description. Employees of the Washington County School Department who were hired prior to July 1, 2015, are provided with pre-65 retiree health insurance benefits through the closed Local Education Plan (LGP) administered by the Tennessee Department of Finance and Administration. All eligible pre-65 retired teachers, support staff, and disability participants of local education agencies, who choose coverage, participate in the LEP. This plan is closed to the employees of all participating employers that were hired on or after July 1, 2015. The School Department’s total OPEB liability was measured as of June 30, 2018, and was determined by an actuarial valuation as of that date.
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Actuarial Assumptions and Other Inputs. The total OPEB liability in the June 30, 2018, actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Actuarial Cost Method Entry Age NormalInflation 2.25%Salary Increases Salary increases used in the July 1, 2018
TCRS actuarial valuation; 3.44% to 8.72%, including inflation
Discount Rate 3.62%Healthcare Cost Trend Based on the Getzen Model, with trend Rates starting 6.75% for the 2019 calendar year,
and gradually decreasing 32-year period to an ultimate trend of rate of 3.53% with .32% added to approximate the effect of the excise tax
Retirees Share of Benefit Related Cost Discussed under Benefits Provided
The discount rate was 3.62 percent, based on the daily rate of Fidelity’s 20-year Municipal GO AA index closest to but not later than the measurement date. Mortality rates were based on the results of a statewide experience study undertaken on behalf of the Tennessee Consolidated Retirement System (TCRS). These mortality rates were used in the July 1, 2018, actuarial valuation of the TCRS. Unless noted otherwise, the actuarial demographic assumptions used in the June 30, 2018, valuations were the same as those employed in the July 1, 2018, Pension Actuarial Valuation of the Tennessee Consolidated Retirement System (TCRS). These assumptions were developed by TCRS based on the results of an actuarial experience study for the period July 1, 2012 - June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. Mortality tables are used to measure the probabilities of participants dying before and after retirement. The mortality rates employed in this valuation are taken from the RP-2014 Healthy Participant Mortality Table for Annuitants for non-disabled post-retirement mortality, with mortality improvement projected to all future years using Scale MP-2016. Post-retirement tables are Blue Collar and adjusted with a 2 percent load for males and a -3 percent load for females. Mortality rates for impaired lives are the same as those used by TCRS and are taken from a gender distinct table published in the IRS Ruling 96-7 for disabled lives with a 10 percent load.
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Changes in Assumptions. The discount rate changed from 3.56 percent as of the beginning of the measurement period to 3.62 percent as of the measurement date of June 30, 2018. The assumed initial costs and premium amounts were revised to reflect rates adopted for the 2019 plan year. The assumed initial trend rate applicable to the 2019 plan year was revised from 5.4 percent to 6.75 percent. Benefits provided. The Washington County School Department offers the LEP to provide health insurance coverage to eligible pre-65 retirees, support staff, and disabled participants of local education agencies. Retirees are required to discontinue coverage under the LEP upon obtaining Medicare eligibility. Insurance coverage is the only postemployment benefit provided to retirees. An insurance committee created in accordance with TCA 8-27-301 establishes and amends the benefit terms of the LEP. All members have the option of choosing between the premier preferred provider organization (PPO), standard PPO, limited PPO or the wellness health savings consumer-driven health plan (CDHP) for healthcare benefits. Retired plan members of the LEP receive the same plan benefits as active employees at a blended premium rate that considers the cost of all participants. This creates an implicit subsidy for retirees. Participating employers determine their own policy related to direct subsidies provided for retiree premiums. Washington County School Department provides a direct subsidy ranging from $161 to $336 per month for certified retirees depending on coverage selected. The School Department does not provide a direct subsidy for noncertified retirees. The state, as a governmental non-employer contributing entity, provides a direct subsidy for eligible retirees premiums based on years of service. Retirees with 30 or more years of service will receive 45 percent; 20 but less than 30 years, 35 percent; and less than 20 years, 20 percent of the scheduled premium. No subsidy is provided for enrollees of the health savings CDHP. Employees Covered by Benefit Terms At the measurement date of June 30, 2018, the following employees were covered by the benefit terms:
SchoolDepartment
Retirees and Beneficiaries 50Inactive, nonretired members 0Active Members Eligible for Future Benefits 743Active Members Not Eligible for Future Benefits 87
Total 880
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A state insurance committee, created in accordance with TCA 8-27-301, establishes the required payments to the LEP by member employers and employees through the blended premiums established for active and retired employees. Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premium rates. Administrative costs are allocated to plan participants. Employers contribute towards employee costs based on their own developed policies. During the current reporting period, the School Department paid $388,828 to the LEP for OPEB benefits as they came due. Changes in the Collective Total OPEB Liability
Washington County State ofSchool Department TN Total OPEB
71.4037% 28.5963% Liability
Balance July 1, 2017 $ 7,007,020 $ 3,442,797 $ 10,449,817Changes for the Year: Service Cost $ 440,138 $ 176,270 $ 616,408 Interest 273,890 109,689 383,579 Changes in Benefit Terms (624,462) (250,090) (874,552) Difference between Expected and Actuarial Experience 206,352 82,642 288,994 Changes in Proportion 454,536 (454,536) 0 Changes in Assumption and Other Inputs 246,856 98,863 345,719
Benefit Payments (416,349) (166,743) (583,092)Net Changes $ 580,961 $ (403,905) $ 177,056
Balance June 30, 2018 $ 7,587,981 $ 3,038,892 $ 10,626,873
Share of Collective Liability
The Washington County School Department has a special funding situation related to benefits paid by the State of Tennessee for its eligible retired employees participating in the LEP. The Washington County School Department's proportionate share of the collective total OPEB Liability was based on a projection of the employers long-term share of benefit payments to the OPEB plan relative to the projected share of benefit payments of all participating employers and nonemployer contributing entities, actuarially determined. The School Department recognized negative revenues of $5,679 for subsidies provided by nonemployer contributing entities for benefits paid by the LEP for School Department retirees. During the year, the Washington County School Department’s proportionate share of the collective OPEB Liability was 71.403 percent and the State of Tennessee’s share was 28.5963 percent.
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OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2019, the School Department recognized OPEB expense of $138,453, including the state’s share of the expense (negative $5,679). At June 30, 2019, the School Department reported deferred outflows of resources and deferred inflows of resources related to its proportionate share of OPEB from the following sources:
Deferred DeferredOutflows Inflows
of of Resources Resources
Difference Between Expected and Actual Experience $ 186,318 $ 0Changes of Assumptions/Inputs 222,890 277,645Changes in Proportion and Differences Between Amounts Paid as Benefits Came Due and Proportionate Share Amounts Paid by the Employer and Nonemployer Contributors As Benefits Came Due 421,017 0Benefits Paid After the Measurement Date of June 30, 2018 388,828 0
Total $ 1,219,053 $ 277,645
Amounts reported as deferred inflows and deferred outflows of resources (excluding benefits paid after the measurement date) related to OPEB will be recognized in OPEB expense as follows: Year Ending SchoolJune 30 Department
2020 $ 54,5662021 54,5662022 54,5662023 54,5662024 54,566Thereafter 279,747
In the table shown above, positive amounts will increase OPEB expense while negative amounts will decrease OPEB expense. Sensitivity of proportionate share of the collective total OPEB liability to changes in the discount rate. The following presents the School Department’s proportionate share of the collective total OPEB liability related to the LEP, as well as what the proportionate share of the collective total OPEB liability
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would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current discount rate. Discount Rate Current
1% Discount 1%Decrease Rate Increase
2.62% 3.62% 4.62%
Proportionate Share of the Collective Total OPEB Liability $ 8,140,614 $ 7,587,981 $ 7,061,884
Sensitivity of proportionate share of the collective total OPEB liability to changes in the healthcare cost trend rate. The following presents the School Department’s proportionate share of the collective total OPEB liability related to the LEP, as well as what the proportionate share of the collective total OPEB liability would be if it were calculated using a healthcare cost trend rate that is one percentage point lower or one percentage point higher than the current healthcare cost trend rate. Healthcare Cost Trend Rate
1% Curent 1%Decrease Rate Increase
5.75 to 2.85% 6.75 to 3.85% 7.75 to 4.85%
Proportionate Share of the Collective Total OPEB Liability $ 6,723,573 $ 7,587,981 $ 8,615,925
I. Termination Benefits
The discretely presented Washington County School Department offers a retirement incentive payment. To be eligible, certified employees must retire with 25 years of experience and at least ten years of experience with Washington County School Department. Under the terms of the plan, employees will receive a one-time payment of $7,000 for an employee that retires with 25 years of experience. The amount decreases in decrements to $1,000 for any employee who retires with 33 years or more of experience. As of June 30, 2019, two employees had given notice of their intent to retire during the 2019-20 year. The estimated cost of the payments due to those individuals reported in the government-wide Statement of Net Position is $11,303. The entire amount is expected to be paid within one year. The governmental funds’ financial statements reflect retirement incentive expenditures of $24,760 in the General Purpose School Fund.
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J. Office of Central Accounting, Budgeting, and Purchasing
Washington County operates under the provisions of Fiscal Control Acts of 1957. These acts provide for a central system of accounting, budgeting, and purchasing covering all funds administered by the county mayor and superintendent of highways. These funds are maintained in the Office of the Director of Accounts and Budgets.
K. Purchasing Laws
Office of County Mayor Purchasing procedures for the Offices of County Mayor and Superintendent of Highways are governed by the County Purchasing Law of 1957, Section 5-14-101, et seq., Tennessee Code Annotated (TCA). Purchasing procedures for the Office of Superintendent of Highways are also governed by provisions of the Uniform Road Law, Section 54-7-113, TCA. These statutes provide for a purchasing agent and require competitive bids on all purchases exceeding $10,000. Office of Director of Schools Purchasing procedures for the discretely presented Washington 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.
L. Subsequent Events
On October 28, 2019, the Washington County Commission authorized the County Mayor to execute an inter-local agreement with the Town of Jonesborough and the Washington County Board of Education requiring the Town of Jonesborough and Washington County to enter a building lease for the lease-purchase of capital improvements to construct a community facility to include recreation facilities and a multipurpose building, primarily for use of the Board of Education as a school facility with adjacent grounds and facilities for recreation space, and a facilities lease for the management of the facilities, grounds, parks and recreation programming, and other uses. The agreements were signed on November 19, 2019. The fixed term of the building lease is not to exceed 38 years, and the total cost of financing not to exceed $32.75 million. The athletic facilities lease term is ten years at a monthly rent amount of $41,700.
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VI. OTHER NOTES – DISCRETELY PRESENTED WASHINGTON COUNTY EMERGENCY COMMUNICATIONS DISTRICT A. General Information and Significant Accounting Policies
Washington County Emergency Communications District is an emergency communications district under Tennessee Code Annotated (TCA) Section 7‐86. The District has established the number 911 as a primary emergency telephone number to provide emergency service quickly and efficiently.
The financial statements of the district have been prepared in conformity with accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB). The financial statements are reported using the economic resources measurement focus on the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. The district is a discretely presented Component Unit of Washington County, Tennessee. The district is a separate legal entity and is not fiscally dependent upon Washington County, Tennessee. However, the district’s Board of Directors is appointed by the county mayor and Washington County, Tennessee, has the ability to significantly influence the programs, projects, activities and level of services provided by the district. Operating revenue includes service charges, and funding from the Tennessee Emergency Communications Board. Nonoperating revenues are identified in accordance with the Accounting and Financial Reporting Manual for Tennessee Emergency Communications Districts. When an expense is incurred for purposes for which both restricted and unrestricted net position is available, the district considers restricted funds to have been spent first. 1. Basis of Accounting
The district utilizes the full accrual basis of accounting. Revenue is recognized in the period in which it is earned and measurable; likewise, expenses are recognized when incurred, if measurable. Accordingly, all of the district’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources, including capital assets and long‐term liabilities, are included in the accompanying statement of net position in accordance with the provisions of GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.
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2. Cash and Deposits
Cash and Cash Equivalents on the Statements of Net Position and Cash Flows includes petty cash, cash on hand, and demand deposits. Cash and Cash Equivalents are all covered by FDIC insurance or by the State of Tennessee collateral pool. The district is exposed to concentration of credit risk by placing its deposits in financial institutions. The district has mitigated the risks because the bank balance in excess of the FDIC limit is collateralized by the State of Tennessee bank collateral pool. State statutes including TCA Sections 7‐86‐122 and 5‐8‐301 specify deposit and investment provisions.
3. Compensated Absences
Regular full ‐ time employees accrue 40 hours of vacation time after one year of continuous employment, 80 hours after two years of continuous employment, 88 hours after five years of continuous employment, 96 hours after six years of continuous employment, 104 hours after seven years of continuous employment, 112 hours after eight years of continuous employment, 120 hours after nine years of continuous employment, and 120 hours thereafter of continuous employment. Regular full time employees who have completed 15 years of continuous employment will receive 128 hours of vacation time, 136 hours after 16 years of continuous employment, 144 hours after 17 years of continuous employment, 152 hours after 18 years of continuous employment, and 160 hours after 19 years of continuous service. Sick leave accrues at a rate of eight hours per month. Sick leave days may accumulate with no maximum number of hours. An employee who has completed 15 years of service and is eligible to retire would be eligible for one or both of the following options: (1) upon retirement, an employee may elect to receive compensation equivalent to two days of sick leave at the employee’s regular rate for every completed year of service, up to a maximum of 30 years, or option (2), the employee may receive service credits based upon a board approved formula.
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Compensatory time may be earned at 1‐1/2 times the regular rate of pay for time worked over 40 hours of work. Without the proper request, employees are paid this rate on their next paycheck.
Balance BalanceBeginning End of
of Year Additions Year
Compensated Absences $ 381,150 $ 41,633 $ 422,783
4. Pensions
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 District's participation in the Public Employee Retirement Plan of the Tennessee Consolidated Retirement System (TCRS), and additions to/deductions from the district's fiduciary net position have been determined on the same basis as they are reported by the TCRS for the Public Employee Retirement Plan. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of the Public Employee Retirement Plan of TCRS. Investments are reported at fair value.
5. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
B. Budget
In accordance with Tennessee Code Annotated (TCA) 7‐86‐120, an annual budget is adopted by the district. The budget is approved by the Board of Directors and is also submitted to the primary government, Washington County, Tennessee. Expenses are presented at the legal level of control, which is defined in the Accounting and Financial Reporting Manual for Tennessee Emergency Communications Districts as the line‐item level.
C. Deposits and Investments
State statutes including TCA Sections 7‐86‐122 and 5‐8‐301 specify deposit and investment provisions.
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DEPOSITS ‐ State statutes require all deposits with financial institutions must be collateralized in an amount equal to 105 percent of the market value of uninsured deposits. The collateral must be placed by the depository bank in an escrow account in a second bank for the benefit of the organization. The district does not have a policy for interest rate risk or other credit risk other than pledging securities for amounts in excess of FDIC coverage. INVESTMENTS ‐ Investments are allowed for the district in accordance with TCA Section 5‐8‐301, which includes the provision that counties are authorized to make direct investments in bonds, notes or treasury bonds, notes or treasury bills of the U.S. Government and obligations guaranteed by the U.S. Government or any of its agencies; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; and Washington County's own legally issued bonds or notes. These investments may not have a maturity greater than two years. The district may make investments with longer maturities if various restrictions set out in the State law are followed. The district is also authorized to make investments in the State Pooled Investment Fund and in repurchase agreements. Repurchase agreements must be approved by the State Director of Local Finance 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 2 percent below the market value of the securities on the day of purchase. As of June 30, 2019, the district held no investments.
D. Capital Assets
Capital assets are stated at cost. Depreciation is computed using the straight‐line method and a life of 10‐40 years for building renovations, 1‐10 years for the furniture, 3‐7 years for the equipment, and 5 years for the vehicles. The dollar threshold for capitalization is $1,000.
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Balance Balance7-1-18 Additions Decreases 6-30-19
Capital Assets Depreciated: Building Improvements $ 2,072,110 $ 39,489 $ 0 $ 2,111,599 Vehicle 51,618 65,381 (31,962) 85,037 Communication and Office Equipment 1,256,240 208,237 0 1,464,477 Furniture and Fixtures 189,889 0 0 189,889
$ 3,569,857 $ 313,107 $ (31,962) $ 3,851,002Accumulated Depreciation (1,169,986) (184,785) 31,962 (1,322,809)
Capital Assets Depreciated, Net $ 2,399,871 $ 128,322 $ 0 $ 2,528,193
E. Pension Plan
General Information about the Pension Plan: Plan Description
Employees of the district are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple‐employer pension plan administered by the TCRS. The TCRS was created by state statute under TCA Title 8, Chapters 34‐37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at www.treasury.tn.gov/Retirement/Boards-and-Governance/Reporting-and-Investment-Policies. Benefits Provided
TCA Title 8, Chapters 34‐37 establishes 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 at age 55 and vested. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non‐service related disability eligibility. The service related and non‐service related disability benefits are determined in the same manner as a service
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retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits is available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost‐of‐living adjustments (COLAs) after retirement. A COLA is granted each July for annuitants retired prior to the 2nd 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 3 percent, and applied to the current benefit. No COLA is granted if the change in the CPI is less than one‐half percent. A one percent COLA is granted if the CPI change is between one‐half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Employees Covered by Benefit Terms
At the measurement date of June 30, 2018, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 9Inactive employees entitled to but not yet receiving benefits 36Active employees 38
83Contributions Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. The district has adopted a noncontributory plan and makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2019, employer contributions for the district were $202,086 based on a rate of 12.04 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept the district's state shared taxes if required employer contributions are not remitted. The employer's actuarially determined contribution (ADC) and member contributions are expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Net Pension Liability (Asset): The district's net pension liability (asset) was measured as of June 30, 2018, and the total pension liability (asset) used to calculate net pension liability was determined by an actuarial valuation as of that date.
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Actuarial Assumptions The total pension liability as of June 30, 2018, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.5%Salary Increases Graded Salary Ranges from 8.72%
to 3.44% Based on Age, IncludingInflation, Averaging 4%
Investment Rate of Return 7.25%, Net of Pension PlanInvestment Expenses, IncludingInflation
Cost of Living Adjustment 2.25%
Mortality rates were based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2018, actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2012, through June 30, 2016. The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long‐term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2016 actuarial experience study. A blend of future capital market projections and historical market returns was used in a building‐block method in which a best‐estimate of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) is developed for each major asset class. These best‐estimates are combined to produce the long‐term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation of 2.5 percent. The best estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each major asset class are summarized in the following table:
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PercentageLong-termExpected PercentageReal Rate Target
Asset Class of Return Allocations
U.S. Equity 5.69 % 31 %Developed Market International Equity 5.29 14Emerging Market International Equity 6.36 4Private Equity and Strategic Lending 5.79 20U.S. Fixed Income 2.01 20Real Estate 4.32 10Short-term Securities 0.00 1
Total 100 %
The long‐term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.25 percent based on a blending of the factors described above. Discount Rate The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from the district will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long‐term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
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Changes in the Net Pension Liability (Asset)
Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)
(a) (b) (a)-(b)
Balance, July 1, 2017 $ 5,438,782 $ 5,441,584 $ (2,802)
Changes for the year: Service Cost $ 121,335 $ 0 $ 121,335 Interest 399,628 0 399,628 Differences Between Expected and Actual Experience 254,553 0 254,553 Changes in Assumptions 0 0 0 Contributions-Employer 0 210,595 (210,595) Net Investment Income 0 456,287 (456,287) Benefit Payments, Including Refunds of Employee Contributions (96,027) (96,027) 0 Administrative Expense 0 (3,669) 3,669 Other Changes 0 0 0Net Changes $ 679,489 $ 567,186 $ 112,303
Balance, June 30, 2018 $ 6,118,271 $ 6,008,770 $ 109,501
Increase (Decrease)
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate The following presents the net pension liability (asset) of the district calculated using the discount rate of 7.25 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1.0‐percentage‐point lower (6.25 percent) or 1.0‐percentage‐point higher (8.25 percent) than the current rate:
Current
1% Discount 1%Decrease Rate Increase
6.25% 7.25% 8.25%
Washington CountyEmergency CommunicationsDistrict's Net PensionLiability (Asset) $ 1,156,750 $ 109,501 $ (745,943)
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Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Expense For the year ended June 30, 2019, the district recognized pension expense of $93,385.
Deferred Outflows of Resources and Deferred Inflows of Resources
For the year ended June 30, 2019, the district reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred DeferredOutflows Inflows
of of Resources Resources
Difference Between Expected and Actual Experience $ 221,354 $ 256,650Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 29,601Changes in Assumptions 83,460 0LEA's Contributions Subsequent to the Measurement Date of June 30, 2018 202,086 0
Total $ 506,900 $ 286,251
The amount shown above for "Contributions subsequent to the measurement date of June 30, 2018," will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year EndingJune 30 Amount
2020 $ 33,6082021 (4,955)2022 (49,598)2023 (13,572)2024 24,122Thereafter 28,961
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In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense.
Payable to the Pension Plan At June 30, 2019, Washington County Emergency Communications District reported a payable of $20,004 for the outstanding amount of contributions to the pension plan required at the year ended June 30, 2019.
F. Other Postemployment Benefits
Plan Types The district has adopted a plan that provides post‐employment medical, dental, and vision benefits for retirees and their dependents. Upon retirement, individuals are eligible to continue to receive coverage under the employer's group medical, dental and vision plans. The OPEB plan is a single‐employer defined benefit OPEB plan administered by the District. The plan is funded on a pay‐as‐you‐go basis. No assets are accumulated in a trust that meets all of the criteria in GASB Statement No. 75, paragraph 4. The district’s Board of Directors has the authority to establish and amend benefit terms and contributions requirements. The district offers other post‐employment benefits for full time regular employees retiring under the Tennessee Consolidated Retirement System (TCRS) guidelines. There is no minimum age requirement with 30 years of service or age 60 with 25 years of service. If the employee transferred from the City of Johnson City in 1988, they are eligible to count their full time employment with the city toward the eligibility year requirement. Eligible retirees receive medical, vision and dental insurance until eligible for Medicare. If coverage for legal dependents is in place, the legal dependent's insurance benefit will cease when they are Medicare eligible. The eligible retirees will contribute two times the amount that a current active employee contributes. The surviving spouse can carry insurance for 60 days from the date of death of a retired employee at current rates. Employees Covered by Benefit Terms. As of the June 30, 2018 measurement date with a roll forward to June 30, 2019, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 0Inactive employees entitled to but not yet receiving benefits 0Active employees 32
32
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The district's total OPEB liability of $957,631 was measured based on an actuarial valuation performed as of July 1, 2017, with a roll forward to June 30, 2019 and a measurement date of June 30, 2018. Actuarial assumptions and other inputs. The total OPEB liability in the June 30, 2019, actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all period included in the measurement, unless otherwise specified: Discount Assumption. A discount rate of 3.5 percent (per the actuarial report) was used. This rate was based on the current yield for 20‐year, tax‐exempt general obligation municipal bonds with an average rating of AA/Aa or higher. Healthcare Trend Assumption. The medical cost increase represents the combination of the inflation in the price of healthcare, changes in utilization, technological advances and changes in the health status of plan participants. The rates were based on medical industry expectations of future increases adjusted to reflect historical premium rate changes within the district’s health insurance plans. Rates for 2031 and beyond were based on projections of the Office of the Actuary at the Centers for Medicare and Medicaid Services, as published in National Health Expenditures Projections: 2016-2025. Average claims costs for future years were assumed to increase at the rates below:
Years Medical Dental,Beginning Drug Rate Vision Rate
2018-2020 7.75 % 4.00 %2021-2022 7.25 4.002023-2024 6.75 4.002025-2026 6.25 4.002027-2028 5.75 4.002029-2030 5.25 4.002031+ 5.00 4.00
Mortality. These rates were based on a June 30, 2016 TCRS Experience Study with the MP‐2015 generational improvement scale (multiplied by 50 percent). Disability, Retirement and Turnover. These rates were from the June 30, 2016, TCRS Experience Study. Per Capita Benefit Costs. Health benefit costs were based on group medical premiums for the period July 1, 2017, through June 30, 2019. The premiums were converted to age-specific charges using the actuary’s rating model factors.
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Salary Increases. Future salaries were expected to increase at an annual rate of 2.00 percent. Spousal Coverage. The valuation assumes that those currently with family coverage will have a spouse and/or dependents that will also be covered upon retirement. Changes in the Total OPEB Liability Changes in the Total OPEB Liability were as follows:
TotalOPEB
Liability
Balance at 6-30-18 $ 964,701Changes for the year: Service Cost 23,318 Interest 34,581 Expected Benefit Payments 0 Effect of Assumption Changes 0 Effect of Plan Changes 0 Employer Contributions (64,969) Plan Expenses 0 Net Investment Income 0 Differences Between Expected and Actual 0Net Changes (7,070)
Balance at 6-30-19 $ 957,631
Sensitivity of the Total OPEB Liability to changes in the discount rate. The following presents the Total OPEB liability of the district as well as what the district’s Total OPEB liability would be if it were calculated using a discount rate that is 1‐percentage‐point lower (2.50 percent) or 1‐percentage‐point higher (4.50 percent) than the current discount rate:
Current1% Discount 1%
Decrease Rate Increase2.5% 3.5% 4.5%
Total OPEB Liability $ 1,075,696 $ 957,631 $ 851,744
Sensitivity of the Total OPEB Liability to changes in the healthcare cost trend rates. The following presents the Total OPEB Liability of the District as well as what the district’s Total OPEB Liability would be if it were calculated using healthcare cost trend rates that are 1‐percentage‐point lower (medical drug rates of 6.75 percent decreasing to 4.00 percent and dental, vision
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rates of 3.00 percent) or 1‐percentage‐point higher (8.75 percent decreasing to 6.00 percent and dental, vision rates of 5.00 percent) than the current healthcare cost trend rates:
1% Decrease Current Trend 1% Increase(6.75% (7.75% (8.75%
Medical Drug Rate and decreasing decreasing decreasingDental, Vision Rates, to 4%) to 5%) to 6%)Respectively 3% 4% 5%
Total OPEB Liability $ 813,378 $ 957,631 $ 1,145,331
For the year ended June 30, 2019, the district recognized OPEB expense of $57,899. At June 30, 2019, the district did not report any deferred outflows of resources or deferred inflows or resources related to OPEB.
G. Lease
In March 2017, the district and Washington County Emergency Management Agency (EMA) entered into a lease agreement for space in the new building. EMA began leasing space from the district for an initial term of ten years with the option to renew the lease for two five-year terms. Total annual payments are $1.00 per year plus EMA will pay the district 26 percent of the total utilities per month. For the fiscal year ended June 30, 2019, total rent income received was $13,800.
H. Contract
The district has a contract for telephone access lines from Centurylink‐United Telephone Southeast. The billing is reviewed annually based on the number of access lines in‐service at calendar year end. This monthly base rate is influenced by various additional charges including database, switching fees, transfers and other services.
I. Risk Management Activities
The district carries insurance coverage for property, auto liability, workman’s compensation, general liability and contents. There have been no significant changes from the previous fiscal year in the types of coverage. There have been no claims in the past three fiscal years that were not covered by insurance.
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J. Concentration
The district depends upon financial resources flowing from, or associated with, both the State of Tennessee and local governments. Because of this dependency, the district is subject to changes in specific flows of intergovernmental revenues based on modifications to State laws and State and local appropriations.
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REQUIRED SUPPLEMENTARY INFORMATION
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Exhibit F-1
Washington County, TennesseeSchedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRSPrimary GovernmentFor the Fiscal Year Ended June 30
2014 2015 2016 2017 2018
Total Pension Liability Service Cost $ 1,959,654 $ 2,006,787 $ 1,999,322 $ 2,038,780 $ 2,246,506Interest 5,997,939 6,309,733 6,702,327 7,019,820 7,475,372Changes in Benefit Terms 0 0 0 0 0Differences Between Actual and Expected Experience (980,642) 124,006 (1,057,233) 1,667,765 (1,352,707)Changes in Assumptions 0 0 0 2,363,660 0Benefit Payments, Including Refunds of Employee Contributions (2,656,978) (3,076,662) (3,320,294) (3,580,969) (3,992,582)Net Change in Total Pension Liability $ 4,319,973 $ 5,363,864 $ 4,324,122 $ 9,509,056 $ 4,376,589Total Pension Liability, Beginning 79,341,350 83,661,323 89,025,187 93,349,309 102,858,365
Total Pension Liability, Ending (a) $ 83,661,323 $ 89,025,187 $ 93,349,309 $ 102,858,365 $ 107,234,954
Plan Fiduciary Net PositionContributions - Employer $ 3,503,113 $ 3,289,974 $ 3,329,914 $ 2,399,314 $ 2,267,322Contributions - Employee 145 16,673 752 0 0Net Investment Income 12,460,698 2,712,482 2,409,669 10,500,433 8,435,284Benefit Payments, Including Refunds of Employee Contributions (2,656,978) (3,076,662) (3,320,294) (3,580,969) (3,992,582)Administrative Expense (37,958) (47,685) (71,170) (81,735) (86,480)Other 0 0 0 209 0Net Change in Plan Fiduciary Net Position $ 13,269,020 $ 2,894,782 $ 2,348,871 $ 9,237,252 $ 6,623,544Plan Fiduciary Net Position, Beginning 74,778,668 88,047,688 90,942,470 93,291,341 102,528,593
Plan Fiduciary Net Position, Ending (b) $ 88,047,688 $ 90,942,470 $ 93,291,341 $ 102,528,593 $ 109,152,137
Net Pension Liability (Asset), Ending (a - b) $ (4,386,365) $ (1,917,283) $ 57,968 $ 329,772 $ (1,917,183)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 105.24% 102.15% 99.94% 99.68% 101.79%Covered Payroll $ 24,479,597 $ 25,133,489 $ 25,454,977 $ 27,415,356 $ 26,457,412Net Pension Liability (Asset) as a Percentage of Covered Payroll (17.92%) (7.63%) 0.23% 1.20% (7.25%)
Note: Ten years of data will be presented when available.
Note: The agent plan is a single plan reported under one account with the Tennessee Consolidated Retirement System. This plan coversemployees of the primary government and non-certified employees of the discretely presented School Department.
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Exhibit F-2
Washington County, TennesseeSchedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRSPrimary GovernmentFor the Fiscal Year Ended June 30
2014 2015 2016 2017 2018 2019
Actuarially Determined Contribution $ 3,503,113 $ 3,289,974 $ 3,329,914 $ 2,399,314 $ 2,267,322 $ 2,676,264Less Contributions in Relation to the Actuarially Determined Contribution (3,503,113) (3,289,974) (3,329,914) (2,399,314) (2,267,322) (2,676,264)
Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Covered Payroll $ 24,479,597 $ 25,133,489 $ 25,454,977 $ 27,415,356 $ 26,457,412 $ 27,420,723
Contributions as a Percentage of Covered Payroll 14.31% 13.1% 13.1% 8.75% 8.57% 9.76%
Note: Ten years of data will be presented when available.
Note: The agent plan is a single plan reported under one account with the Tennessee Consolidated Retirement System. This plan coversemployees of the primary government and non-certified employees of the discretely presented School Department.
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Exhibit F-3
Washington County, TennesseeSchedule of Contributions Based on Participation in the Teacher Pension Plan of TCRSDiscretely Presented Washington County School DepartmentFor the Fiscal Year Ended June 30
2015 2016 2017 2018 2019*
Contractually Required Contribution $ 44,103 $ 78,777 $ 117,903 $ 141,649 $ 87,581Less Contributions in Relation to the Contractually Required Contribution (44,103) (78,777) (117,903) (141,649) (87,581)
Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0
Covered Payroll $ 1,102,569 $ 1,969,416 $ 2,947,592 $ 3,541,246 $ 4,514,489
Contributions as a Percentage of Covered Payroll 4.00% 4.00% 4.00% 4.00% 1.94%
* - In FY 2019 the School Department placed the actuarially determined contribution into the pension plan and placed $88,887 into the Pension Stabilization Reserve Trust.
Note: Ten years of data will be presented when available.
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Exhibit F-4
Washington County, TennesseeSchedule of Contributions Based on Participation in the Teacher Legacy Pension Plan of TCRSDiscretely Presented Washington County School DepartmentFor the Fiscal Year Ended June 30
2014 2015 2016 2017 2018 2019
Contractually Required Contribution $ 2,648,436 $ 2,590,548 $ 2,534,123 $ 2,535,337 $ 2,498,309 $ 2,765,056Less Contributions in Relation to the Contractually Required Contribution (2,648,436) (2,590,548) (2,534,123) (2,535,337) (2,498,309) (2,765,056)
Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Covered Payroll $ 29,824,732 $ 28,656,529 $ 28,032,471 $ 28,045,726 $ 27,514,425 $ 26,434,559
Contributions as a Percentage of Covered Payroll 8.88% 9.04% 9.04% 9.04% 9.08% 10.46%
Note: Ten years of data will be presented when available.
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Exhibit F-5
Washington County, TennesseeSchedule of Proportionate Share of the Net Pension Liability (Asset) in the Teacher Pension Plan of TCRSDiscretely Presented Washington County School DepartmentFor the Fiscal Year Ended June 30
2015 2016 2017 2018
School Department's Proportion of the Net Pension Liability/Asset 0.530664% 0.447589% 0.449095% 0.405231%
School Department's Proportionate Share of the Net Pension Liability (Asset) $ (21,348) $ (46,595) $ (118,487) $ (183,784)
Covered Payroll $ 1,102,569 $ 1,969,416 $ 2,947,592 $ 3,541,246
School Department's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (1.94)% (2.73)% (4.02)% (5.19%)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 127.46% 121.88% 126.81% 126.97%
Note: Ten years of data will be presented when available.
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Exhibit F-6
Washington County, TennesseeSchedule of Proportionate Share of the Net Pension Liability (Asset) in the Teacher Legacy Pension Plan of TCRSDiscretely Presented Washington County School DepartmentFor the Fiscal Year Ended June 30
2014 2015 2016 2017 2018
School Department's Proportion of the Net Pension Liability/Asset 0.759867% 0.765500% 0.776562% 0.793385% 0.785750%
School Department's Proportionate Share of the Net Pension Liability (Asset) $ (123,475) $ 313,575 $ 4,853,084 $ (259,584) $ (2,764,989)
Covered Payroll $ 29,824,732 $ 28,656,529 $ 28,032,471 $ 28,045,726 $ 27,514,425
School Department's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered Payroll (0.41%) 1.09% 17.31% (0.93%) (10.05%)
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 100.08% 99.81% 97.14% 100.14% 101.49%
Note: Ten years of data will be presented when available.
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Exhibit F-7
Washington County, TennesseeSchedule of Changes in the Total OPEB Liability and Related Ratios - Self-Insured PlanPrimary GovernmentFor the Fiscal Year Ended June 30
2018 2019Total OPEB LiabilityService Cost $ 346,572 $ 279,885 Interest 187,569 145,520 Changes in Benefit Terms 0 (87,688)Differences Between Actual and Expected Experience 0 (1,228,511)Changes in Assumptions or Other Inputs (123,152) 103,406Benefit Payments (95,756) (70,692) Net Change in Total OPEB Liability $ 315,233 $ (858,080) Total OPEB Liability, Beginning 4,547,596 4,862,829
Total OPEB Liability, Ending $ 4,862,829 $ 4,004,749
Covered Employee Payroll $ 17,488,653 $ 16,536,947 Net OPEB Liability as a Percentage of Covered Employee Payroll 27.81% 24.22%
Note 1: Ten years of data will be presented when available.
Note 2: Changes in assumptions. (a) The following are the discount rates used in each period:
2017 3.58% 2018 3.87% 2019 3.50%
(b) In 2019, the mortality improvement scale was updated to Scale BB from Scale AA.
Note 3: As of 2019, the county no longer contributes to dental and vision premiums.
Note 4: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
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Exhibit F-8
Washington County, TennesseeSchedule of Changes in the Total OPEB Liability and Related Ratios - Local Education PlanDiscretely Presented Washington County School DepartmentFor the Fiscal Year Ended June 30
2017 2018Total OPEB LiabilityService Cost $ 663,050 $ 616,408 Interest 317,882 383,579 Changes in Benefit Terms 0 (874,552)Differences Between Actual and Expected Experience 0 288,994Changes in Assumptions or Other Inputs (486,049) 345,719Benefit Payments (536,793) (583,092) Net Change in Total OPEB Liability $ (41,910) $ 177,056 Total OPEB Liability, Beginning 10,491,727 10,449,817
Total OPEB Liability, Ending $ 10,449,817 $ 10,626,873
Nonemployer Contributing Entity Proportionate Share of the Total OPEB Liability $ 3,442,797 $ 3,038,892 Employer Proportionate Share of the Total OPEB Liability 7,007,020 7,587,981
Covered Employee Payroll $ 40,927,192 $ 40,927,192 Net OPEB Liability as a Percentage of Covered Employee Payroll 17.12% 18.54%
Note 1: Ten years of data will be presented when available.
Note 2: Changes in assumptions. (a) The following are the discount rates used in each period:
2017 2.92% 2018 3.56% 2019 3.62%
(b) The assumed initial trend rate applicable to the 2019 plan year was revised from 5.4% to 6.75%.
Note 3: No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75.
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WASHINGTON COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2019
TENNESSEE CONSOLIDATED RETIREMENT SYSTEM Valuation Date: Actuarially determined contribution rates for fiscal year 2019 were calculated based on the June 30, 2017, actuarial valuation. Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age NormalAmortization Method Level Dollar, Closed (Not to Exceed 20 Years)Remaining Amortization Period Varies by YearAsset Valuation 10-Year Smoothed Within a 20%
Corridor to Market ValueInflation 2.5%Salary Increases Graded Salary Ranges from 8.72% to
3.44% Based on Age, Including Inflation, Averaging 4%
Investment Rate of Return 7.25%, Net of Investment Expense, Including Inflation
Retirement Age Pattern of Retirement Determined by Experience Study
Mortality Customized Table Based on Actual Experience Including an Adjustment for Some Anticipated Improvement
Cost of Living Adjustment 2.25%
Changes of assumptions. In 2017, the following assumptions were changed: decreased inflation rate from 3 percent to 2.5 percent; decreased the investment rate of return from 7.5 percent to 7.25 percent; decreased the cost-of-living adjustment from 2.5 percent to 2.25 percent; decreased salary growth graded ranges from an average of 4.25 percent to an average of 4 percent; and modified mortality assumptions.
144
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES
145
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.
____________________________ Solid Waste/Sanitation Fund – The Solid Waste/Sanitation Fund is used to account for transactions involving solid waste collection. Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. 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.
Debt Service Funds ____________________________
Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.
____________________________ Rural Debt Service Fund – The Rural Debt Service Fund is used to account for the retirement of long-term debt that is secured by a pledge of tax revenues from outside the Johnson City School District.
146
Exhibit G-1
Washington County, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2019
Constitu - TotalSolid tional Rural Nonmajor
Waste / Drug Officers - Debt GovernmentalSanitation Control Fees Total Service Funds
ASSETS
Cash $ 0 $ 0 $ 258,445 $ 258,445 $ 0 $ 258,445Equity in Pooled Cash and Investments 337,747 374,557 0 712,304 249,633 961,937Accounts Receivable 15,389 0 114,111 129,500 0 129,500Due from Other Governments 67,233 1,000 0 68,233 0 68,233Due from Other Funds 0 1,541 0 1,541 0 1,541Property Taxes Receivable 956,801 0 0 956,801 0 956,801Allowance for Uncollectible Property Taxes (17,003) 0 0 (17,003) 0 (17,003)
Total Assets $ 1,360,167 $ 377,098 $ 372,556 $ 2,109,821 $ 249,633 $ 2,359,454
LIABILITIES
Accounts Payable $ 49,269 $ 3,379 $ 0 $ 52,648 $ 0 $ 52,648Accrued Payroll 10,556 0 0 10,556 0 10,556Payroll Deductions Payable 1,693 0 0 1,693 0 1,693Due to Other Funds 1,918 0 372,556 374,474 0 374,474Total Liabilities $ 63,436 $ 3,379 $ 372,556 $ 439,371 $ 0 $ 439,371
DEFERRED INFLOWS OF RESOURCES
Deferred Current Property Taxes $ 908,429 $ 0 $ 0 $ 908,429 $ 0 $ 908,429Deferred Delinquent Property Taxes 27,272 0 0 27,272 0 27,272Total Deferred Inflows of Resources $ 935,701 $ 0 $ 0 $ 935,701 $ 0 $ 935,701
(Continued)
Special Revenue FundsDebt Service
Fund
147
Exhibit G-1
Washington County, TennesseeCombining Balance SheetNonmajor Governmental Funds (Cont.)
Constitu - TotalSolid tional Rural Nonmajor
Waste / Drug Officers - Debt GovernmentalSanitation Control Fees Total Service Funds
FUND BALANCES
Restricted:Restricted for Public Safety $ 0 $ 373,719 $ 0 $ 373,719 $ 0 $ 373,719Restricted for Debt Service 0 0 0 0 249,633 249,633
Committed:Committed for Public Health and Welfare 361,030 0 0 361,030 0 361,030
Total Fund Balances $ 361,030 $ 373,719 $ 0 $ 734,749 $ 249,633 $ 984,382
Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,360,167 $ 377,098 $ 372,556 $ 2,109,821 $ 249,633 $ 2,359,454
Special Revenue FundsDebt Service
Fund
148
Exhibit G-2
Washington County, TennesseeCombining Statement of Revenues, Expenditures,
and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended June 30, 2019
Constitu - TotalSolid tional Rural Nonmajor
Waste / Drug Officers - Debt GovernmentalSanitation Control Fees Total Service Funds
RevenuesLocal Taxes $ 1,033,796 $ 0 $ 0 $ 1,033,796 $ 0 $ 1,033,796Licenses and Permits 129 0 0 129 0 129Fines, Forfeitures, and Penalties 0 58,420 0 58,420 0 58,420Charges for Current Services 111,759 6,000 13,083 130,842 0 130,842Other Local Revenues 191,687 8,052 0 199,739 2,419 202,158State of Tennessee 134,930 0 0 134,930 0 134,930Other Governments and Citizens Groups 0 0 0 0 260,000 260,000
Total Revenues $ 1,472,301 $ 72,472 $ 13,083 $ 1,557,856 $ 262,419 $ 1,820,275
ExpendituresCurrent:
General Government $ 0 $ 0 $ 81 $ 81 $ 0 $ 81Finance 0 0 425 425 0 425Administration of Justice 0 0 12,577 12,577 0 12,577Public Safety 0 18,307 0 18,307 0 18,307Public Health and Welfare 1,517,708 0 0 1,517,708 0 1,517,708
Debt Service:Principal on Debt 0 0 0 0 210,000 210,000Interest on Debt 0 0 0 0 49,850 49,850
Total Expenditures $ 1,517,708 $ 18,307 $ 13,083 $ 1,549,098 $ 259,850 $ 1,808,948
Excess (Deficiency) of RevenuesOver Expenditures $ (45,407) $ 54,165 $ 0 $ 8,758 $ 2,569 $ 11,327
(Continued)
Special Revenue FundsDebt Service
Fund
149
Exhibit G-2
Washington County, TennesseeCombining Statement of Revenues, Expenditures,
and Changes in Fund BalancesNonmajor Governmental Funds (Cont.)
Constitu - TotalSolid tional Rural Nonmajor
Waste / Drug Officers - Debt GovernmentalSanitation Control Fees Total Service Funds
Other Financing Sources (Uses)Insurance Recovery $ 4,345 $ 0 $ 0 $ 4,345 $ 0 $ 4,345Transfers Out (32,000) 0 0 (32,000) 0 (32,000)
Total Other Financing Sources (Uses) $ (27,655) $ 0 $ 0 $ (27,655) $ 0 $ (27,655)
Net Change in Fund Balances $ (73,062) $ 54,165 $ 0 $ (18,897) $ 2,569 $ (16,328)Fund Balance, July 1, 2018 434,092 319,554 0 753,646 247,064 1,000,710
Fund Balance, June 30, 2019 $ 361,030 $ 373,719 $ 0 $ 734,749 $ 249,633 $ 984,382
Special Revenue FundsDebt Service
Fund
150
Exhibit G-3
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetSolid Waste/Sanitation FundFor the Year Ended June 30, 2019
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesLocal Taxes $ 1,033,796 $ 1,024,856 $ 1,024,856 $ 8,940Licenses and Permits 129 100 100 29Charges for Current Services 111,759 65,000 65,000 46,759Other Local Revenues 191,687 132,000 132,000 59,687State of Tennessee 134,930 90,000 90,000 44,930
Total Revenues $ 1,472,301 $ 1,311,956 $ 1,311,956 $ 160,345
ExpendituresPublic Health and Welfare
Sanitation Management $ 0 $ 142,000 $ 0 $ 0Sanitation Education/Information 0 1,000 0 0Waste Pickup 0 320,000 0 0Convenience Centers 1,310,358 1,037,900 1,374,982 64,624Other Waste Disposal 207,350 190,740 337,740 130,390
Total Expenditures $ 1,517,708 $ 1,691,640 $ 1,712,722 $ 195,014
Excess (Deficiency) of RevenuesOver Expenditures $ (45,407) $ (379,684) $ (400,766) $ 355,359
Other Financing Sources (Uses)Insurance Recovery $ 4,345 $ 0 $ 4,346 $ (1)Transfers In 0 125,000 125,000 (125,000)Transfers Out (32,000) 0 (32,000) 0
Total Other Financing Sources $ (27,655) $ 125,000 $ 97,346 $ (125,001)
Net Change in Fund Balance $ (73,062) $ (254,684) $ (303,420) $ 230,358Fund Balance, July 1, 2018 434,092 448,094 448,094 (14,002)
Fund Balance, June 30, 2019 $ 361,030 $ 193,410 $ 144,674 $ 216,356
Budgeted Amounts
151
Exhibit G-4
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and BudgetDrug Control FundFor the Year Ended June 30, 2019
Actual VarianceRevenues/ with Final
Actual Less: Expenditures Budget -(GAAP Encumbrances (Budgetary PositiveBasis) 7/1/2018 Basis) Original Final (Negative)
RevenuesFines, Forfeitures, and Penalties $ 58,420 $ 0 $ 58,420 $ 15,000 $ 15,000 $ 43,420Charges for Current Services 6,000 0 6,000 0 0 6,000Other Local Revenues 8,052 0 8,052 4,300 4,300 3,752
Total Revenues $ 72,472 $ 0 $ 72,472 $ 19,300 $ 19,300 $ 53,172
ExpendituresPublic Safety
Drug Enforcement $ 18,307 $ (3,984) $ 14,323 $ 194,300 $ 194,300 $ 179,977Total Expenditures $ 18,307 $ (3,984) $ 14,323 $ 194,300 $ 194,300 $ 179,977
Excess (Deficiency) of RevenuesOver Expenditures $ 54,165 $ 3,984 $ 58,149 $ (175,000) $ (175,000) $ 233,149
Net Change in Fund Balance $ 54,165 $ 3,984 $ 58,149 $ (175,000) $ (175,000) $ 233,149Fund Balance, July 1, 2018 319,554 (3,984) 315,570 321,013 321,013 (5,443)
Fund Balance, June 30, 2019 $ 373,719 $ 0 $ 373,719 $ 146,013 $ 146,013 $ 227,706
Budgeted Amounts
152
Exhibit G-5
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetRural Debt Service FundFor the Year Ended June 30, 2019
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesOther Local Revenues $ 2,419 $ 0 $ 0 $ 2,419Other Governments and Citizens Groups 260,000 0 260,000 0
Total Revenues $ 262,419 $ 0 $ 260,000 $ 2,419
ExpendituresPrincipal on Debt
Education $ 210,000 $ 210,000 $ 210,000 $ 0Interest on Debt
Education 49,850 49,850 49,850 0Total Expenditures $ 259,850 $ 259,850 $ 259,850 $ 0
Excess (Deficiency) of RevenuesOver Expenditures $ 2,569 $ (259,850) $ 150 $ 2,419
Other Financing Sources (Uses)Transfers In $ 0 $ 260,000 $ 0 $ 0
Total Other Financing Sources $ 0 $ 260,000 $ 0 $ 0
Net Change in Fund Balance $ 2,569 $ 150 $ 150 $ 2,419Fund Balance, July 1, 2018 247,064 247,064 247,064 0
Fund Balance, June 30, 2019 $ 249,633 $ 247,214 $ 247,214 $ 2,419
Budgeted Amounts
153
Major Governmental Funds
Debt Service Funds ____________________________
Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest.
____________________________ General Debt Service Fund – The General Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long-term debt principal, interest, and related costs.
Capital Projects Funds ________________________________________
Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.
________________________________________
General Capital Projects Fund – The General Capital Projects Fund is used to account for general capital expenditures of the county.
154
Exhibit H-1
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetGeneral Debt Service FundFor the Year Ended June 30, 2019
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesLocal Taxes $ 13,504,048 $ 13,069,987 $ 13,069,987 $ 434,061Licenses and Permits 1,640 1,500 1,500 140Other Local Revenues 106,697 20,000 20,000 86,697
Total Revenues $ 13,612,385 $ 13,091,487 $ 13,091,487 $ 520,898
ExpendituresPrincipal on Debt
General Government $ 1,150,000 $ 1,702,500 $ 1,150,000 $ 0Highways and Streets 231,188 211,850 231,188 0Education 5,163,812 4,630,700 5,163,822 10
Interest on DebtGeneral Government 1,218,193 1,328,800 1,218,193 0Highways and Streets 44,660 30,500 44,660 0Education 4,705,477 4,609,200 4,705,537 60
Other Debt ServiceGeneral Government 272,093 224,000 276,000 3,907
Total Expenditures $ 12,785,423 $ 12,737,550 $ 12,789,400 $ 3,977
Excess (Deficiency) of RevenuesOver Expenditures $ 826,962 $ 353,937 $ 302,087 $ 524,875
Other Financing Sources (Uses)Transfers In $ 188,347 $ 81,000 $ 81,000 $ 107,347
Total Other Financing Sources $ 188,347 $ 81,000 $ 81,000 $ 107,347
Net Change in Fund Balance $ 1,015,309 $ 434,937 $ 383,087 $ 632,222Fund Balance, July 1, 2018 5,597,903 5,961,168 5,961,168 (363,265)
Fund Balance, June 30, 2019 $ 6,613,212 $ 6,396,105 $ 6,344,255 $ 268,957
Budgeted Amounts
155
Exhibit H-2
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral Capital Projects FundFor the Year Ended June 30, 2019
Actual VarianceRevenues/ with Final
Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2018 6/30/2019 Basis) Original Final (Negative)
RevenuesLocal Taxes $ 6,899,258 $ 0 $ 0 $ 6,899,258 $ 6,567,040 $ 6,567,040 $ 332,218Licenses and Permits 842 0 0 842 500 500 342Other Local Revenues 232,704 0 0 232,704 175,000 175,000 57,704State of Tennessee 0 0 0 0 400,000 400,000 (400,000)
Total Revenues $ 7,132,804 $ 0 $ 0 $ 7,132,804 $ 7,142,540 $ 7,142,540 $ (9,736)
ExpendituresCapital Projects
General Administration Projects $ 762,140 $ (36,491) $ 906,036 $ 1,631,685 $ 2,500,000 $ 2,653,700 $ 1,022,015Administration of Justice Projects 60,330 (65,212) 4,882 0 0 0 0Public Health and Welfare Projects 29,119 (43,498) 406,276 391,897 425,000 425,000 33,103Social, Cultural, and Recreation Projects 1,671,297 (1,710,577) 89,079 49,799 0 199,800 150,001Public Utility Projects 27,715 (29,000) 1,285 0 0 0 0Highway and Street Capital Projects 0 0 0 0 1,500,000 1,500,000 1,500,000Education Capital Projects 16,248,376 (16,998,512) 2,936,939 2,186,803 0 3,476,300 1,289,497
Capital Projects - DonatedCapital Projects Donated to School Department 0 0 0 0 560,000 0 0Capital Projects Donated to Other Entities 604,401 (687,509) 235,081 151,973 0 154,800 2,827
Total Expenditures $ 19,403,378 $ (19,570,799) $ 4,579,578 $ 4,412,157 $ 4,985,000 $ 8,409,600 $ 3,997,443
Excess (Deficiency) of RevenuesOver Expenditures $ (12,270,574) $ 19,570,799 $ (4,579,578) $ 2,720,647 $ 2,157,540 $ (1,267,060) $ 3,987,707
Other Financing Sources (Uses)Transfers In $ 0 $ 0 $ 0 $ 0 $ 125,000 $ 125,000 $ (125,000)Transfers Out 0 0 0 0 (125,000) (125,000) 125,000
Total Other Financing Sources $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Net Change in Fund Balance $ (12,270,574) $ 19,570,799 $ (4,579,578) $ 2,720,647 $ 2,157,540 $ (1,267,060) $ 3,987,707Fund Balance, July 1, 2018 21,516,572 (19,570,799) 0 1,945,773 3,532,058 3,532,058 (1,586,285)
Fund Balance, June 30, 2019 $ 9,245,998 $ 0 $ (4,579,578) $ 4,666,420 $ 5,689,598 $ 2,264,998 $ 2,401,422
Budgeted Amounts
156
Fiduciary Funds _______________________
Agency Funds are used to account for assets held by the county in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
_______________________
Cities - Sales Tax Fund – The Cities - Sales Tax Fund is used to account for the second half of the sales tax revenues collected inside incorporated cities of the county. These revenues are received by the county from the State of Tennessee and forwarded to the various cities on a monthly basis.
City School ADA – Johnson City Fund – This fund is used to account for the city school system’s share of education revenues collected by the county that must be apportioned between the school systems on an average daily attendance basis. These collections are remitted to the city school systems on a monthly basis. Constitutional Officers - Agency Fund – The Constitutional Officers - Agency Fund is used to account for amounts collected in an agency capacity by the county clerk, circuit and general sessions courts clerk, clerk and master, register of deeds, and sheriff. Such collections include amounts due the state, cities, other county funds, litigants, heirs, and others. Other Agency Fund – The Other Agency Fund is used to account for amounts received and disbursed in an agency capacity for the East Tennessee Railway Authority. Judicial District Drug Fund – The Judicial District Drug Fund is used to account for transactions of the Judicial District Drug Task Force, a joint venture of the various law enforcement agencies of the First Judicial District. District Attorney General Fund – The District Attorney General Fund is used to account for restricted revenue held for the benefit of the Office of District Attorney General.
157
Exhibit I-1
Washington County, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2019
City Constitu -Cities - School tionalSales ADA - Officers - OtherTax Johnson City Agency Agency
ASSETS
Cash $ 0 $ 0 $ 5,315,337 $ 0Equity in Pooled Cash and Investments 4,213 1,506,052 0 18,766Accounts Receivable 0 0 0 0Due from Other Governments 4,300,088 2,617,498 0 0Property Taxes Receivable 0 11,286,026 0 0Allowance for Uncollectible Property Taxes 0 (203,416) 0 0
Total Assets $ 4,304,301 $ 15,206,160 $ 5,315,337 $ 18,766
LIABILITIES
Accounts Payable $ 0 $ 0 $ 0 $ 0Due to Other Taxing Units 4,304,301 15,206,160 0 18,766Due to Litigants, Heirs, and Others 0 0 5,315,337 0Due to Joint Ventures 0 0 0 0
Total Liabilities $ 4,304,301 $ 15,206,160 $ 5,315,337 $ 18,766
(Continued)
Agency Funds
158
Exhibit I-1
Washington County, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary Funds (Cont.)
Judicial DistrictDistrict Attorney
Drug General TotalASSETS
Cash $ 500 $ 0 $ 5,315,837Equity in Pooled Cash and Investments 91,024 140,697 1,760,752Accounts Receivable 3,342 0 3,342Due from Other Governments 2,320 1,417 6,921,323Property Taxes Receivable 0 0 11,286,026Allowance for Uncollectible Property Taxes 0 0 (203,416)
Total Assets $ 97,186 $ 142,114 $ 25,083,864
LIABILITIES
Accounts Payable $ 4,045 $ 3,330 $ 7,375Due to Other Taxing Units 0 0 19,529,227Due to Litigants, Heirs, and Others 0 138,784 5,454,121Due to Joint Ventures 93,141 0 93,141
Total Liabilities $ 97,186 $ 142,114 $ 25,083,864
Agency Funds (Cont.)
159
Exhibit I-2
Washington County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency FundsFor the Year Ended June 30, 2019
Beginning Ending Balance Additions Deductions Balance
Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 5,416 $ 25,934,604 $ 25,935,807 $ 4,213 Due from Other Governments 4,245,836 4,300,088 4,245,836 4,300,088
Total Assets $ 4,251,252 $ 30,234,692 $ 30,181,643 $ 4,304,301
Liabilities Accounts Payable $ 5,416 $ 0 $ 5,416 $ 0 Due to Other Taxing Units 4,245,836 30,234,692 30,176,227 4,304,301
Total Liabilities $ 4,251,252 $ 30,234,692 $ 30,181,643 $ 4,304,301
City School ADA - Johnson City Fund Assets Equity in Pooled Cash and Investments $ 1,579,149 $ 26,798,360 $ 26,871,457 $ 1,506,052 Due from Other Governments 2,342,473 2,617,498 2,342,473 2,617,498 Taxes Receivable 12,316,577 11,286,026 12,316,577 11,286,026 Allowance for Uncollectible Taxes (209,446) (203,416) (209,446) (203,416)
Total Assets $ 16,028,753 $ 40,498,468 $ 41,321,061 $ 15,206,160
Liabilities Due to Other Taxing Units $ 16,028,753 $ 40,498,468 $ 41,321,061 $ 15,206,160
Total Liabilities $ 16,028,753 $ 40,498,468 $ 41,321,061 $ 15,206,160
Constitutional Officers - Agency Fund Assets Cash $ 6,160,187 $ 24,543,154 $ 25,388,004 $ 5,315,337 Accounts Receivable 400 0 400 0
Total Assets $ 6,160,587 $ 24,543,154 $ 25,388,404 $ 5,315,337
Liabilities Due to Litigants, Heirs, and Others $ 6,160,587 $ 24,543,154 $ 25,388,404 $ 5,315,337
Total Liabilities $ 6,160,587 $ 24,543,154 $ 25,388,404 $ 5,315,337
(Continued)
160
Exhibit I-2
Washington County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency Funds (Cont.)
Beginning Ending Balance Additions Deductions Balance
Other Agency Fund Assets Equity in Pooled Cash and Investments $ 0 $ 18,766 $ 0 $ 18,766
Total Assets $ 0 $ 18,766 $ 0 $ 18,766
Liabilities Due to Other Taxing Units $ 0 $ 18,766 $ 0 $ 18,766
Total Liabilities $ 0 $ 18,766 $ 0 $ 18,766
Judicial District Drug Fund Assets Cash $ 540 $ 500 $ 540 $ 500 Equity in Pooled Cash and Investments 121,361 63,261 93,598 91,024 Accounts Receivable 7,081 3,342 7,081 3,342 Due from Other Governments 0 2,320 0 2,320
Total Assets $ 128,982 $ 69,423 $ 101,219 $ 97,186
Liabilities Accounts Payable $ 14,944 $ 4,045 $ 14,944 $ 4,045 Due to Joint Venture 114,038 65,378 86,275 93,141
Total Liabilities $ 128,982 $ 69,423 $ 101,219 $ 97,186
District Attorney General Fund Assets Equity in Pooled Cash and Investments $ 151,403 $ 27,877 $ 38,583 $ 140,697 Due From Other Governments 360 1,417 360 1,417
Total Assets $ 151,763 $ 29,294 $ 38,943 $ 142,114
Liabilities Accounts Payable $ 8,066 $ 3,330 $ 8,066 $ 3,330 Due to Other Litigants, Heirs, and Others 143,697 25,964 30,877 138,784
Total Liabilities $ 151,763 $ 29,294 $ 38,943 $ 142,114
(Continued)
161
Exhibit I-2
Washington County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency Funds (Cont.)
Beginning Ending Balance Additions Deductions Balance
Totals - All Agency Funds Assets Cash $ 6,160,727 $ 24,543,654 $ 25,388,544 $ 5,315,837 Equity in Pooled Cash and Investments 1,857,329 52,842,868 52,939,445 1,760,752 Accounts Receivable 7,481 3,342 7,481 3,342 Due from Other Governments 6,588,669 6,921,323 6,588,669 6,921,323 Taxes Receivable 12,316,577 11,286,026 12,316,577 11,286,026 Allowance for Uncollectible Taxes (209,446) (203,416) (209,446) (203,416)
Total Assets $ 26,721,337 $ 95,393,797 $ 97,031,270 $ 25,083,864
Liabilities Accounts Payable $ 28,426 $ 7,375 $ 28,426 $ 7,375 Due to Other Taxing Units 20,274,589 70,751,926 71,497,288 19,529,227 Due to Joint Ventures 114,038 65,378 86,275 93,141 Due to Litigants, Heirs, and Others 6,304,284 24,569,118 25,419,281 5,454,121
Total Liabilities $ 26,721,337 $ 95,393,797 $ 97,031,270 $ 25,083,864
162
Washington County School Department ________________________________________
This section presents combining and individual fund financial statements for the Washington County School Department, a discretely presented component unit. The School Department uses a General Fund and two Special Revenue Funds.
________________________________________
General Purpose School Fund – The General Purpose School Fund is used to account for general operations of the School Department. School Federal Projects Fund – The School Federal Projects Fund is used to account for restricted federal revenues, which must be expended on specific education programs. Central Cafeteria Fund – The Central Cafeteria Fund is used to account for the cafeteria operations in each of the schools.
163
Exhibit J-1
Washington County, TennesseeStatement of ActivitiesDiscretely Presented Washington County School DepartmentFor the Year Ended June 30, 2019
Net (Expense)Revenue andChanges in
Operating Capital Net PositionCharges Grants Grants Total
for and and GovernmentalFunctions/Programs Expenses Services Contributions Contributions Activities
Governmental Activities: Instruction $ 44,987,335 $ 3,500 $ 3,622,854 $ 0 $ (41,360,981) Support Services 24,030,256 0 119,188 402,827 (23,508,241) Operation of Non-instructional Services 3,882,709 1,569,084 2,141,840 0 (171,785) Debt Service 260,000 0 0 0 (260,000)
Total Governmental Activities $ 73,160,300 $ 1,572,584 $ 5,883,882 $ 402,827 $ (65,301,007)
General Revenues: Taxes: Property Taxes Levied for General Purposes $ 13,600,066 Local Option Sales Taxes 15,338,585 Mixed Drink Tax 1,161 Business Tax 369,150 Grants and Contributions Not Restricted for Specific Programs 37,893,009 Unrestricted Investment Income 141,437 Miscellaneous 124,382 Gain on Investments 4,726 Gain on Sale of Capital Assets 50,101Total General Revenues $ 67,522,617
Change in Net Position $ 2,221,610Net Position, July 1, 2018 78,940,801
Net Position, June 30, 2019 $ 81,162,411
Program Revenues
164
Exhibit J-2
Washington County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Washington County School DepartmentJune 30, 2019
OtherGeneral Govern- TotalPurpose mental GovernmentalSchool Funds Funds
ASSETS
Cash $ 0 $ 50 $ 50Equity in Pooled Cash and Investments 7,551,836 772,791 8,324,627Inventories 0 98,589 98,589Accounts Receivable 11,780 0 11,780Due from Other Governments 2,664,085 725,317 3,389,402Due from Other Funds 19,978 460 20,438Property Taxes Receivable 12,344,680 0 12,344,680Allowance for Uncollectible Property Taxes (222,497) 0 (222,497)Restricted Assets 93,613 0 93,613
Total Assets $ 22,463,475 $ 1,597,207 $ 24,060,682
LIABILITIES
Accounts Payable $ 291,376 $ 6,027 $ 297,403Payroll Deductions Payable 1,531,286 103,420 1,634,706Cash Overdraft 0 29,958 29,958Due to Other Funds 460 19,978 20,438Due to State of Tennessee 3,649 9,640 13,289Other Current Liabilities 489,285 0 489,285Total Liabilities $ 2,316,056 $ 169,023 $ 2,485,079
DEFERRED INFLOWS OF RESOURCES
Deferred Current Property Taxes $ 11,705,900 $ 0 $ 11,705,900Deferred Delinquent Property Taxes 361,914 0 361,914Total Deferred Inflows of Resources $ 12,067,814 $ 0 $ 12,067,814
FUND BALANCES
Nonspendable:Inventory $ 0 $ 98,589 $ 98,589
Restricted:Restricted for Education 12,648 754,595 767,243Restricted for Hybrid Retirement Stabilization Funds 93,613 0 93,613
Committed:Committed for Education 0 575,000 575,000
Assigned:Assigned for Education 1,814,709 0 1,814,709
Unassigned 6,158,635 0 6,158,635Total Fund Balances $ 8,079,605 $ 1,428,184 $ 9,507,789
Total Liabilities, Deferred Inflows of Resources, and Fund Balances$ 22,463,475 $ 1,597,207 $ 24,060,682
Nonmajor Funds
Major Fund
165
Exhibit J-3
Washington County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionDiscretely Presented Washington County School DepartmentJune 30, 2019
Amounts reported for governmental activities in the statementof net position (Exhibit A) are different because:
Total fund balances - balance sheet - governmental funds (Exhibit J-2) $ 9,507,789
(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds. Add: land $ 2,548,284 Add: buildings and improvements net of accumulated depreciation 65,391,205 Add: other capital assets net of accumulated depreciation 4,852,702 72,792,191
(2) Long-term liabilities are not due and payablein the current period and therefore are not reportedin the governmental funds.
Less: compensated absences payable $ (188,347)Less: retirement incentive payable (11,303)Less: OPEB liability (7,587,981) (7,787,631)
(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions and OPEB will be amortizedand recognized as components of pension and OPEB expense in future years: Add: deferred outflows of resources related to pensions $ 6,906,454 Less: deferred inflows of resources related to pensions (5,140,582) Add: deferred outflows of resources related to OPEB 1,219,053 Less: deferred inflows of resources related to OPEB (277,645) 2,707,280
(4) Net pension assets of the agent and cost-sharing plansare not current financial resources and therefore are not reportedin the governmental funds.
Add: net pension asset - agent plan $ 632,095 Add: cost-sharing plans net pension assets - teacher plans 2,948,773 3,580,868
(5) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 361,914
Net position of governmental activities (Exhibit A) $ 81,162,411
166
Exhibit J-4
Washington County, TennesseeStatement of Revenues, Expenditures,
and Changes in Fund Balances - Governmental Funds
Discretely Presented Washington County School DepartmentFor the Year Ended June 30, 2019
OtherGeneral Govern- TotalPurpose mental GovernmentalSchool Funds Funds
RevenuesLocal Taxes $ 29,487,658 $ 0 $ 29,487,658Licenses and Permits 1,739 0 1,739Charges for Current Services 555,901 1,016,043 1,571,944Other Local Revenues 322,398 4,449 326,847State of Tennessee 37,200,971 0 37,200,971Federal Government 178,998 6,393,830 6,572,828
Total Revenues $ 67,747,665 $ 7,414,322 $ 75,161,987
ExpendituresCurrent:
Instruction $ 40,974,990 $ 3,144,519 $ 44,119,509Support Services 23,337,048 1,096,041 24,433,089Operation of Non-Instructional Services 1,355,789 2,659,370 4,015,159
Debt Service:Other Debt Service 260,000 0 260,000
Total Expenditures $ 65,927,827 $ 6,899,930 $ 72,827,757
Excess (Deficiency) of RevenuesOver Expenditures $ 1,819,838 $ 514,392 $ 2,334,230
Other Financing Sources (Uses)Insurance Recovery $ 90,245 $ 0 $ 90,245Transfers In 40,479 0 40,479Transfers Out 0 (40,479) (40,479)
Total Other Financing Sources (Uses) $ 130,724 $ (40,479) $ 90,245
Net Change in Fund Balances $ 1,950,562 $ 473,913 $ 2,424,475Fund Balance, July 1, 2018 6,129,043 954,271 7,083,314
Fund Balance, June 30, 2019 $ 8,079,605 $ 1,428,184 $ 9,507,789
Nonmajor Funds
Major Fund
167
Exhibit J-5
Washington County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesDiscretely Presented Washington County School DepartmentFor the Year Ended June 30, 2019
Amounts reported for governmental activities in the statementof activities (Exhibit B) are different because:
Net change in fund balances - total governmental funds (Exhibit J-4) $ 2,424,475
(1) Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of these assets is allocated over their useful lives and reported as depreciation expense. The difference between capital outlays and depreciation is itemized as follows: Add: capital assets purchased in the current period $ 134,054 Less: current-year depreciation expense (4,837,286) (4,703,232)
(2) The net effect of various miscellaneous transactions involving capital assets(sales, trade-ins, and donations) is to decrease (or increase) net assets. Add: assets donated and capitalized $ 402,827 Less: book value of assets disposed (102,214) 300,613
(3) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2019 $ 361,914 Less: deferred delinquent property taxes and other deferred June 30, 2018 (280,296) 81,618
(4) Some expenses reported in the statement of activities do not requirethe use of current financial resources and therefore are not reportedas expenditures in the governmental funds. Change in compensated absences payable $ 6,465 Change in OPEB liability (580,961) Change in retirement incentive payable (4,306) Change in net pension assets/liability 3,311,523 Change in deferred outflows related to pensions (73,736) Change in deferred inflows related to pensions 633,492 Change in deferred outflows related to OPEB 809,980 Change in deferred inflows related to OPEB 15,679 4,118,136
Change in net position of governmental activities (Exhibit B) $ 2,221,610
168
Exhibit J-6
Washington County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Washington County School DepartmentJune 30, 2019
TotalSchool Nonmajor
Federal Central GovernmentalProjects Cafeteria Funds
ASSETS
Cash $ 0 $ 50 $ 50Equity in Pooled Cash and Investments 0 772,791 772,791Inventories 0 98,589 98,589Due from Other Governments 661,928 63,389 725,317Due from Other Funds 460 0 460
Total Assets $ 662,388 $ 934,819 $ 1,597,207
LIABILITIES
Accounts Payable $ 0 $ 6,027 $ 6,027Payroll Deductions Payable 102,812 608 103,420Cash Overdraft 29,958 0 29,958Due to Other Funds 19,978 0 19,978Due to State of Tennessee 9,640 0 9,640Total Liabilities $ 162,388 $ 6,635 $ 169,023
FUND BALANCES
Nonspendable:Inventory $ 0 $ 98,589 $ 98,589
Restricted:Restricted for Education 0 754,595 754,595
Committed:Committed for Education 500,000 75,000 575,000
Total Fund Balances $ 500,000 $ 928,184 $ 1,428,184
Total Liabilities and Fund Balances $ 662,388 $ 934,819 $ 1,597,207
Special Revenue Funds
169
Exhibit J-7
Washington County, TennesseeCombining Statement of Revenues, Expenditures,
and Changes in Fund Balances - Nonmajor Governmental Funds
Discretely Presented Washington County School DepartmentFor the Year Ended June 30, 2019
TotalSchool NonmajorFederal Central GovernmentalProjects Cafeteria Funds
RevenuesCharges for Current Services $ 0 $ 1,016,043 $ 1,016,043Other Local Revenues 0 4,449 4,449Federal Government 4,283,484 2,110,346 6,393,830
Total Revenues $ 4,283,484 $ 3,130,838 $ 7,414,322
ExpendituresCurrent:
Instruction $ 3,144,519 $ 0 $ 3,144,519Support Services 1,096,041 0 1,096,041Operation of Non-Instructional Services 0 2,659,370 2,659,370
Total Expenditures $ 4,240,560 $ 2,659,370 $ 6,899,930
Excess (Deficiency) of RevenuesOver Expenditures $ 42,924 $ 471,468 $ 514,392
Other Financing Sources (Uses)Transfers Out $ (40,479) $ 0 $ (40,479)
Total Other Financing Sources (Uses) $ (40,479) $ 0 $ (40,479)
Net Change in Fund Balances $ 2,445 $ 471,468 $ 473,913Fund Balance, July 1, 2018 497,555 456,716 954,271
Fund Balance, June 30, 2019 $ 500,000 $ 928,184 $ 1,428,184
Special Revenue Funds
170
Exhibit J-8
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetDiscretely Presented Washington County School DepartmentGeneral Purpose School FundFor the Year Ended June 30, 2019
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesLocal Taxes $ 29,487,658 $ 29,400,865 $ 29,400,865 $ 86,793Licenses and Permits 1,739 2,500 2,500 (761)Charges for Current Services 555,901 520,000 520,000 35,901Other Local Revenues 322,398 177,500 276,745 45,653State of Tennessee 37,200,971 36,607,448 37,113,868 87,103Federal Government 178,998 173,500 173,500 5,498
Total Revenues $ 67,747,665 $ 66,881,813 $ 67,487,478 $ 260,187
ExpendituresInstruction
Regular Instruction Program $ 34,599,265 $ 37,509,874 $ 35,247,998 $ 648,733Special Education Program 4,055,035 4,246,815 4,249,046 194,011Career and Technical Education Program 2,315,927 2,275,508 2,387,664 71,737Adult Education Program 4,763 12,331 12,331 7,568
Support ServicesAttendance 134,727 137,431 140,045 5,318Health Services 731,214 742,598 781,018 49,804Other Student Support 1,345,089 1,503,790 1,502,589 157,500Regular Instruction Program 2,059,703 2,209,771 2,275,623 215,920Special Education Program 894,507 967,318 988,214 93,707Career and Technical Education Program 123,689 157,958 163,069 39,380Technology 1,660,170 959,629 1,833,333 173,163Other Programs 262,284 0 262,284 0Board of Education 1,747,641 1,810,887 1,823,137 75,496Director of Schools 650,841 631,627 717,270 66,429Office of the Principal 3,695,855 3,711,806 4,018,594 322,739Fiscal Services 364,992 358,806 390,912 25,920Operation of Plant 4,892,786 4,885,300 5,075,298 182,512Maintenance of Plant 1,897,017 1,640,604 2,191,940 294,923Transportation 2,747,238 2,880,228 3,103,998 356,760Central and Other 129,295 138,288 141,868 12,573
Operation of Non-Instructional ServicesFood Service 602,425 247,183 677,616 75,191Community Services 494,471 516,986 553,160 58,689Early Childhood Education 258,893 259,474 282,870 23,977
Other Debt ServiceEducation 260,000 0 260,000 0
Total Expenditures $ 65,927,827 $ 67,804,212 $ 69,079,877 $ 3,152,050
Excess (Deficiency) of RevenuesOver Expenditures $ 1,819,838 $ (922,399) $ (1,592,399) $ 3,412,237
Other Financing Sources (Uses)Insurance Recovery $ 90,245 $ 0 $ 0 $ 90,245Transfers In 40,479 182,399 182,399 (141,920)Transfers Out 0 (260,000) 0 0
Total Other Financing Sources $ 130,724 $ (77,601) $ 182,399 $ (51,675)
(Continued)
Budgeted Amounts
171
Exhibit J-8
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetDiscretely Presented Washington County School DepartmentGeneral Purpose School Fund (Cont.)
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
Net Change in Fund Balance $ 1,950,562 $ (1,000,000) $ (1,410,000) $ 3,360,562Fund Balance, July 1, 2018 6,129,043 5,450,000 5,450,000 679,043
Fund Balance, June 30, 2019 $ 8,079,605 $ 4,450,000 $ 4,040,000 $ 4,039,605
Budgeted Amounts
172
Exhibit J-9
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetDiscretely Presented Washington County School DepartmentSchool Federal Projects FundFor the Year Ended June 30, 2019
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesFederal Government $ 4,283,484 $ 3,839,632 $ 5,211,300 $ (927,816)
Total Revenues $ 4,283,484 $ 3,839,632 $ 5,211,300 $ (927,816)
ExpendituresInstruction
Regular Instruction Program $ 1,475,407 $ 1,230,659 $ 1,748,601 $ 273,194Special Education Program 1,557,318 1,414,050 1,766,821 209,503Career and Technical Education Program 111,794 92,917 120,272 8,478
Support ServicesOther Student Support 107,456 96,129 132,377 24,921Regular Instruction Program 539,747 535,953 737,458 197,711Special Education Program 91,698 0 201,838 110,140Technology 6,921 4,567 25,188 18,267Transportation 350,219 436,676 438,266 88,047
Total Expenditures $ 4,240,560 $ 3,810,951 $ 5,170,821 $ 930,261
Excess (Deficiency) of RevenuesOver Expenditures $ 42,924 $ 28,681 $ 40,479 $ 2,445
Other Financing Sources (Uses)Transfers Out $ (40,479) $ (28,684) $ (40,479) $ 0
Total Other Financing Sources $ (40,479) $ (28,684) $ (40,479) $ 0
Net Change in Fund Balance $ 2,445 $ (3) $ 0 $ 2,445Fund Balance, July 1, 2018 497,555 0 0 497,555
Fund Balance, June 30, 2019 $ 500,000 $ (3) $ 0 $ 500,000
Budgeted Amounts
173
Exhibit J-10
Washington County, TennesseeSchedule of Revenues, Expenditures, and Changes
in Fund Balance - Actual and BudgetDiscretely Presented Washington County School DepartmentCentral Cafeteria FundFor the Year Ended June 30, 2019
Variancewith FinalBudget -Positive
Actual Original Final (Negative)
RevenuesCharges for Current Services $ 1,016,043 $ 980,700 $ 980,700 $ 35,343Other Local Revenues 4,449 0 0 4,449Federal Government 2,110,346 2,081,000 2,081,000 29,346
Total Revenues $ 3,130,838 $ 3,061,700 $ 3,061,700 $ 69,138
ExpendituresOperation of Non-Instructional Services
Food Service $ 2,659,370 $ 3,061,700 $ 3,061,700 $ 402,330Total Expenditures $ 2,659,370 $ 3,061,700 $ 3,061,700 $ 402,330
Excess (Deficiency) of RevenuesOver Expenditures $ 471,468 $ 0 $ 0 $ 471,468
Net Change in Fund Balance $ 471,468 $ 0 $ 0 $ 471,468Fund Balance, July 1, 2018 456,716 368,430 368,430 88,286
Fund Balance, June 30, 2019 $ 928,184 $ 368,430 $ 368,430 $ 559,754
Budgeted Amounts
174
MISCELLANEOUS SCHEDULES
175
Exhibit K-1
Washington County, TennesseeSchedule of Changes in Long-term Notes, Other Loans, Bonds, and Nonexchange Financial GuaranteeFor the Year Ended June 30, 2019
Paid and/orOriginal Date Last Issued MaturedAmount Interest of Maturity Outstanding During During Outstanding
Description of Indebtedness of Issue Rate Issue Date 7-1-18 Period Period 6-30-19
GOVERNMENTAL ACTIVITIES:
NOTES PAYABLE
Payable through General Debt Service Fund General Obligation Capital Outlay, Series 2013 $ 5,520,000 2 to 3% 9-13-13 7-15-25 $ 3,125,000 $ 0 $ 565,000 $ 2,560,000 Total Payable through General Debt Service Fund $ 3,125,000 $ 0 $ 565,000 $ 2,560,000
Total Notes Payable $ 3,125,000 $ 0 $ 565,000 $ 2,560,000
OTHER LOANS PAYABLE
Payable through General Debt Service FundJustice Center Construction 2007 20,410,000 4.37 to 5 1-23-07 6-1-19 $ 730,000 0 $ 730,000 $ 0School Construction 2007 105,675,000 4.37 to 5 1-23-07 6-1-19 3,420,000 0 3,420,000 0
Total Payable through General Debt Service Fund $ 4,150,000 $ 0 $ 4,150,000 $ 0
Total Other Loans Payable $ 4,150,000 $ 0 $ 4,150,000 $ 0
(Continued)
176
Exhibit K-1
Washington County, TennesseeSchedule of Changes in Long-term Notes, Other Loans, Bonds, and Nonexchange Financial Guarantee (Cont.)
Paid and/orOriginal Date Last Issued MaturedAmount Interest of Maturity Outstanding During During Outstanding
Description of Indebtedness of Issue Rate Issue Date 7-1-18 Period Period 6-30-19
GOVERNMENTAL ACTIVITIES (CONT.):
BONDS PAYABLE
Payable through General Debt Service Fund School Refunding 2011 $ 6,895,000 2 to 4% 6-27-11 4-1-22 $ 1,305,000 $ 0 $ 335,000 $ 970,000 School Construction Refunding 2011 2,870,000 1.7 to 4 6-27-11 4-1-23 1,825,000 0 280,000 1,545,000 School Buses 2012 1,760,000 2 11-9-12 4-1-20 530,000 0 260,000 270,000 General Obligation School 2013 1,385,000 2 to 3.8 9-13-13 7-25-25 870,000 0 130,000 740,000 General Obligation Refunding, Series 2016A 115,970,000 2.88 to 4 7-13-16 6-1-37 115,835,000 0 30,000 115,805,000 General Obligation Refunding, Series 2016B 4,540,000 2 7-13-16 6-1-21 4,070,000 0 350,000 3,720,000 General Obligation Bonds, Series 2017A 15,535,000 2.88 to 5 6-30-17 6-1-37 15,535,000 0 0 15,535,000 General Obligation Bonds, Series 2017B 14,565,000 2.88 to 5 6-30-17 6-1-37 14,335,000 0 235,000 14,100,000 General Obligation Bonds, Series 2017C 1,850,000 2.3 to 5 6-30-17 6-1-25 1,645,000 0 210,000 1,435,000 Total Payable through General Debt Service Fund $ 155,950,000 $ 0 $ 1,830,000 $ 154,120,000
Payable through Rural Debt Service Fund Rural Schools 2013 2,630,000 2 to 3 9-13-13 6-30-26 $ 1,840,000 $ 0 $ 210,000 $ 1,630,000 Total Payable through Rural Debt Service Fund $ 1,840,000 $ 0 $ 210,000 $ 1,630,000
Total Bonds Payable $ 157,790,000 $ 0 $ 2,040,000 $ 155,750,000
NONEXCHANGE FINANCIAL GUARANTEE
Payable through General Fund Airport Authority 2018 Aerospace Park Bonds 1,912,500 3 to 4.5 3-29-18 5-1-38 $ 0 $ 2,000,382 $ 591,504 $ 1,408,878 Total Payable through General Fund $ 0 $ 2,000,382 $ 591,504 $ 1,408,878
Total Nonexchange Financial Guarantee $ 0 $ 2,000,382 $ 591,504 $ 1,408,878
177
Exhibit K-2Washington County, TennesseeSchedule of Long-term Debt Requirements by Year
YearEndingJune 30 Principal Interest Total
2020 $ 450,000 $ 66,125 $ 516,1252021 460,000 52,475 512,4752022 475,000 39,638 514,6382023 310,000 29,825 339,8252024 315,000 21,225 336,2252025 270,000 12,450 282,4502026 280,000 4,200 284,200
Total $ 2,560,000 $ 225,938 $ 2,785,938
Year EndingJune 30 Principal Interest Total
2020 $ 7,300,000 $ 5,667,824 $ 12,967,8242021 7,265,000 5,415,285 12,680,2852022 7,490,000 5,158,161 12,648,1612023 7,740,000 4,854,687 12,594,6872024 7,375,000 4,539,533 11,914,5332025 7,670,000 4,237,543 11,907,5432026 7,725,000 3,922,928 11,647,9282027 7,690,000 3,607,387 11,297,3872028 8,020,000 3,284,437 11,304,4372029 8,360,000 2,947,487 11,307,4872030 8,715,000 2,596,087 11,311,0872031 9,040,000 2,265,338 11,305,3382032 9,385,000 1,922,138 11,307,1382033 9,735,000 1,568,056 11,303,0562034 10,025,000 1,276,006 11,301,0062035 10,320,000 975,256 11,295,2562036 10,785,000 673,406 11,458,4062037 11,110,000 347,188 11,457,188
Total $ 155,750,000 $ 55,258,747 $ 211,008,747
(Continued)
Notes
Bonds
178
Exhibit K-2Washington County, TennesseeSchedule of Long-term Debt Requirements by Year (Cont.)
Year EndingJune 30 Principal Interest Total
Principal and Interest Requirementson Outstanding Aerospace Park Bonds:
2020 $ 70,000 $ 67,750 $ 137,7502021 70,000 64,600 134,6002022 75,000 61,450 136,4502023 75,000 58,075 133,0752024 80,000 54,700 134,7002025 85,000 51,100 136,1002026 90,000 47,275 137,2752027 90,000 44,575 134,5752028 95,000 41,762 136,7622029 95,000 38,675 133,6752030 100,000 35,587 135,5872031 105,000 32,338 137,3382032 105,000 28,925 133,9252033 110,000 25,381 135,3812034 115,000 21,669 136,6692035 120,000 17,644 137,6442036 120,000 13,444 133,4442037 125,000 9,244 134,2442038 130,000 4,712 134,712
Total $ 1,855,000 $ 718,906 $ 2,573,906
Calculation of Nonexchange Financial Guarantee Liability:
Principal Balance $ 1,855,000Add: Accrued Interest 11,292Less: Funds Accumulated in Airport Authority's Escrow Account (457,414) *
Washington County's Nonexchange Financial Guarantee Liability 6-30-19 $ 1,408,878
*Amounts in escrow will be used to make the required principal and interest payments when due.
Nonexchange Financial Guarantee
179
Exhibit K-3
Washington County, TennesseeSchedule of TransfersPrimary Government and Discretely Presented Washington County School DepartmentFor the Year Ended June 30, 2019
From Fund To Fund Purpose Amount
PRIMARY GOVERNMENT
General General Debt Service Debt retirement $ 49,000Solid Waste/Sanitation " " 32,000Highway/Public Works " " 107,347Total Transfers Primary Government $ 188,347
DISCRETELY PRESENTED WASHINGTON COUNTY SCHOOL DEPARTMENT
School Federal Projects Fund General Purpose School Indirect costs $ 40,479Total Transfers Discretely Presented Washington County School Department $ 40,479
180
Exhibit K-4
Washington County, TennesseeSchedule of Salaries and Official Bonds/Insurance of Principal OfficialsPrimary Government and Discretely Presented Washington County School DepartmentFor the Year Ended June 30, 2019
Salary Paid
During Bond/Official Authorization for Salary Period Insurance Surety
County Mayor Daniel Eldridge (7-1-18 through 8-31-18) Section 8-24-102, TCA $ 21,195 $ 100,000 RLI Insurance Company William Grandy (9-1-18 through 6-30-19) Section 8-24-102, TCA 105,974 400,000 Local Government Property and Casualty FundSuperintendent of Highways Section 8-24-102, TCA 110,102 100,000 RLI Insurance Company Director of Schools State Board of Education
and County Board of Education 135,367 (1) 400,000 Tennessee Risk Management TrustTrustee Monty Treadway (7-1-18 through 8-31-18) Section 8-24-102, TCA 15,165 3,899,095 RLI Insurance Company Rick Storey (9-1-18 through 6-30-19) Section 8-24-102, TCA 75,827 4,072,699 "Assessor of Property Section 8-24-102, TCA 90,992 400,000 Local Government Property and Casualty FundDirector of Accounts and Budgets Bobbye Webb (7-1-18) County Commission 46,343 (2) 100,000 RLI Insurance Company Mitch Meredith (7-2-18 through 6-30-19) County Commission 90,992 400,000 Local Government Property and Casualty FundCounty Clerk Section 8-24-102, TCA 90,992 400,000 "Circuit and General Sessions Courts Clerk Karen Guinn (7-1-18 through 8-31-18) Section 8-24-102, TCA 16,682 (3) 100,000 RLI Insurance Company Brenda Downs (9-1-18 through 6-30-19) Section 8-24-102, TCA 83,410 (4) 400,000 Local Government Property and Casualty FundClerk and Master Section 8-24-102, TCA 100,092 (5) 400,000 "Register of Deeds Ginger Jilton (7-1-18 through 8-31-18) Section 8-24-102, TCA 15,165 100,000 RLI Insurance Company Teresa Bowman (9-1-18 through 6-30-19) Section 8-24-102, TCA 75,827 400,000 Local Government Property and Casualty FundSheriff Section 8-24-102, TCA 121,112 (6) 400,000 "Purchasing Agent County Commission 63,344 400,000 "
Employee Blanket Bonds:Public Employees Dishonesty - Primary Government 400,000 Local Government Property and Casualty FundPublic Employees Dishonesty - School Department 400,000 Tennessee Risk Management Trust
(1) Includes base salary of $130,050, final teacher salary of $3,672, and bonuses of $1,645. Does not include career ladder supplement of $3,000 and travel allowance of $3,200.(2) Payout $46,343 for accrued vacation benefits.(3) Includes $1,517 for administration of multiple courts.(4) Includes $7,582 for administration of multiple courts.(5) Includes $9,099 for administration of probate court.(6) Includes $11,010 supplement as workhouse superintendent. Does not include law enforcement training supplement of $600.
181
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund TypesFor the Year Ended June 30, 2019
Constitu -Solid tional Highway / General
Waste / Drug Officers - Public DebtGeneral Sanitation Control Fees Works Service
Local TaxesCounty Property Taxes
Current Property Tax $ 21,665,892 $ 954,473 $ 0 $ 0 $ 4,605,944 $ 12,148,705Trustee's Collections - Prior Year 593,232 20,100 0 0 125,994 260,252Trustee's Collections - Bankruptcy 12,868 535 0 0 2,742 6,085Circuit Clerk/Clerk and Master Collections - Prior Years 186,382 6,546 0 0 39,624 84,537Interest and Penalty 147,286 5,767 0 0 31,313 73,279Payments in-Lieu-of Taxes - T.V.A. 1,820 80 0 0 387 1,019Payments in-Lieu-of Taxes - Local Utilities 352,946 15,532 0 0 75,034 197,717Payments in-Lieu-of Taxes - Other 4,851 215 0 0 24,823 2,705
County Local Option TaxesLocal Option Sales Tax 19,379 0 0 0 0 0Litigation Tax - General 212,273 0 0 0 0 0Litigation Tax - Special Purpose 23,780 0 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 0 341,439Litigation Tax - Courthouse Security 266,377 0 0 0 0 0Business Tax 633,825 27,917 0 0 134,637 354,823Mineral Severance Tax 0 0 0 0 18,306 0
Statutory Local TaxesBank Excise Tax 59,779 2,631 0 0 12,709 33,487Wholesale Beer Tax 339,774 0 0 0 0 0Other Statutory Local Taxes 171,018 0 0 0 0 0
Total Local Taxes $ 24,691,482 $ 1,033,796 $ 0 $ 0 $ 5,071,513 $ 13,504,048
Licenses and PermitsLicenses
Marriage Licenses $ 2,927 $ 129 $ 0 $ 0 $ 699 $ 1,640Cable TV Franchise 514,262 0 0 0 0 0
(Continued)
Special Revenue FundsDebt Service
Funds
182
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Constitu -Solid tional Highway / General
Waste / Drug Officers - Public DebtGeneral Sanitation Control Fees Works Service
Licenses and Permits (Cont.)Permits
Building Permits $ 176,445 $ 0 $ 0 $ 0 $ 0 $ 0Other Permits 14,235 0 0 0 400 0
Total Licenses and Permits $ 707,869 $ 129 $ 0 $ 0 $ 1,099 $ 1,640
Fines, Forfeitures, and PenaltiesCircuit Court
Fines $ 452 $ 0 $ 0 $ 0 $ 0 $ 0Criminal Court
Fines 4,080 0 0 0 0 0Officers Costs 37,669 0 0 0 0 0Drug Control Fines 0 0 5,542 0 0 0Drug Court Fees 1,885 0 0 0 0 0Jail Fees 19,631 0 0 0 0 0DUI Treatment Fines 1,571 0 0 0 0 0Data Entry Fee - Criminal Court 7,369 0 0 0 0 0Courtroom Security Fee 29,717 0 0 0 0 0Victims Assistance Assessments 4,964 0 0 0 0 0
General Sessions CourtFines 67,186 0 0 0 0 0Officers Costs 103,938 0 0 0 0 0Game and Fish Fines 201 0 0 0 0 0Drug Control Fines 0 0 5,560 0 0 0Drug Court Fees 10,699 0 0 0 0 0Jail Fees 115,251 0 0 0 0 0DUI Treatment Fines 15,901 0 0 0 0 0
(Continued)
Special Revenue FundsDebt Service
Funds
183
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Constitu -Solid tional Highway / General
Waste / Drug Officers - Public DebtGeneral Sanitation Control Fees Works Service
Fines, Forfeitures, and Penalties (Cont.)General Sessions Court (Cont.)
Data Entry Fee - General Sessions Court $ 43,582 $ 0 $ 0 $ 0 $ 0 $ 0Courtroom Security Fee 4,004 0 0 0 0 0Victims Assistance Assessments 42,311 0 0 0 0 0
Juvenile CourtFines 238 0 0 0 0 0Officers Costs 1,058 0 0 0 0 0Data Entry Fee - Juvenile Court 1,738 0 0 0 0 0
Chancery CourtOfficers Costs 4,228 0 0 0 0 0Data Entry Fee - Chancery Court 5,315 0 0 0 0 0Courtroom Security Fee 556 0 0 0 0 0
Other Courts - In-countyFines 2,263 0 0 0 0 0
Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 0 47,318 0 0 0
Total Fines, Forfeitures, and Penalties $ 525,807 $ 0 $ 58,420 $ 0 $ 0 $ 0
Charges for Current ServicesGeneral Service Charges
Solid Waste Disposal Fee $ 0 $ 2,067 $ 0 $ 0 $ 0 $ 0Surcharge - Waste Tire Disposal 0 109,692 0 0 0 0Work Release Charges for Board 6,695 0 0 0 0 0
FeesCopy Fees 916 0 0 0 0 0Library Fees 20,787 0 0 0 0 0
(Continued)
Special Revenue FundsDebt Service
Funds
184
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Constitu -Solid tional Highway / General
Waste / Drug Officers - Public DebtGeneral Sanitation Control Fees Works Service
Charges for Current Services (Cont.)Fees (Cont.)
Archives and Records Management Fee $ 261,641 $ 0 $ 0 $ 0 $ 0 $ 0Telephone Commissions 172,619 0 0 0 0 0Electronic Citation Fee 1,466 0 0 0 0 0Constitutional Officers' Fees and Commissions 0 0 0 13,083 0 0Data Processing Fee - Register 40,546 0 0 0 0 0Data Processing Fee - Sheriff 7,488 0 0 0 0 0Sexual Offender Registration Fee - Sheriff 9,250 0 0 0 0 0Data Processing Fee - County Clerk 17,856 0 0 0 0 0Subscription and Document Retrieval Fee - Circuit 8,400 0 0 0 0 0Vehicle Insurance Coverage and Reinstatement Fees 3,710 0 0 0 0 0
Education ChargesOther Charges for Services 91,345 0 6,000 0 0 0
Total Charges for Current Services $ 642,719 $ 111,759 $ 6,000 $ 13,083 $ 0 $ 0
Other Local RevenuesRecurring Items
Investment Income $ 237,177 $ 5,470 $ 5,386 $ 0 $ 89,085 $ 106,697Lease/Rentals 28,900 0 0 0 139,314 0Sale of Materials and Supplies 499 0 0 0 2,662 0Commissary Sales 55,407 0 0 0 0 0Sale of Recycled Materials 0 186,217 0 0 334 0Miscellaneous Refunds 28,252 0 0 0 2,521 0
Nonrecurring ItemsSale of Equipment 88,544 0 1,541 0 121,532 0Damages Recovered from Individuals 3,818 0 0 0 125 0Contributions and Gifts 1,150 0 0 0 0 0
(Continued)
Special Revenue FundsDebt Service
Funds
185
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Constitu -Solid tional Highway / General
Waste / Drug Officers - Public DebtGeneral Sanitation Control Fees Works Service
Other Local Revenues (Cont.)Other Local Revenues
Other Local Revenues $ 2,040 $ 0 $ 1,125 $ 0 $ 0 $ 0Total Other Local Revenues $ 445,787 $ 191,687 $ 8,052 $ 0 $ 355,573 $ 106,697
Fees Received From County OfficialsFees In-Lieu-of Salary
County Clerk $ 1,258,690 $ 0 $ 0 $ 0 $ 0 $ 0Circuit Court Clerk 737,126 0 0 0 0 0General Sessions Court Clerk 1,228,676 0 0 0 0 0Clerk and Master 462,215 0 0 0 0 0Register 599,947 0 0 0 0 0Sheriff 43,753 0 0 0 0 0Trustee 2,324,957 0 0 0 0 0
Total Fees Received From County Officials $ 6,655,364 $ 0 $ 0 $ 0 $ 0 $ 0
State of TennesseeGeneral Government Grants
Juvenile Services Program $ 11,885 $ 0 $ 0 $ 0 $ 0 $ 0Solid Waste Grants 0 26,828 0 0 0 0
Public Safety GrantsLaw Enforcement Training Programs 54,600 0 0 0 0 0Other Public Safety Grants 28,428 0 0 0 0 0
Health and Welfare GrantsHealth Department Programs 885,784 0 0 0 0 0
Public Works GrantsState Aid Program 0 0 0 0 1,144,750 0Litter Program 48,264 0 0 0 0 0
(Continued)
Special Revenue FundsDebt Service
Funds
186
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Constitu -Solid tional Highway / General
Waste / Drug Officers - Public DebtGeneral Sanitation Control Fees Works Service
State of Tennessee (Cont.)Other State Revenues
Income Tax $ 231,158 $ 0 $ 0 $ 0 $ 0 $ 0Beer Tax 17,959 0 0 0 0 0Vehicle Certificate of Title Fees 17,998 0 0 0 0 0Alcoholic Beverage Tax 179,572 0 0 0 0 0State Revenue Sharing - Telecommunications 218,420 0 0 0 0 0Contracted Prisoner Boarding 1,769,196 0 0 0 0 0Gasoline and Motor Fuel Tax 0 0 0 0 3,127,591 0Petroleum Special Tax 0 0 0 0 88,735 0Registrar's Salary Supplement 15,164 0 0 0 0 0Other State Grants 2,100 0 0 0 0 0Other State Revenues 745,154 108,102 0 0 0 0
Total State of Tennessee $ 4,225,682 $ 134,930 $ 0 $ 0 $ 4,361,076 $ 0
Federal GovernmentFederal Through State
Homeland Security Grants $ 152,973 $ 0 $ 0 $ 0 $ 0 $ 0Law Enforcement Grants 18,026 0 0 0 0 0
Direct Federal RevenueAsset Forfeiture Funds 46,854 0 0 0 0 0Other Direct Federal Revenue 1,365,889 0 0 0 0 0
Total Federal Government $ 1,583,742 $ 0 $ 0 $ 0 $ 0 $ 0
Other Governments and Citizens GroupsOther Governments
Paving and Maintenance $ 0 $ 0 $ 0 $ 0 $ 158,469 $ 0
(Continued)
Special Revenue FundsDebt Service
Funds
187
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Constitu -Solid tional Highway / General
Waste / Drug Officers - Public DebtGeneral Sanitation Control Fees Works Service
Other Governments and Citizens Groups (Cont.)Other Governments (Cont.)
Contributions $ 13,500 $ 0 $ 0 $ 0 $ 0 $ 0Contracted Services 130,641 0 0 0 0 0
OtherOther 72,600 0 0 0 0 0
Total Other Governments and Citizens Groups $ 216,741 $ 0 $ 0 $ 0 $ 158,469 $ 0
Total $ 39,695,193 $ 1,472,301 $ 72,472 $ 13,083 $ 9,947,730 $ 13,612,385
(Continued)
Special Revenue FundsDebt Service
Funds
188
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Rural GeneralDebt Capital
Service Projects Total
Local TaxesCounty Property Taxes
Current Property Tax $ 0 $ 6,220,775 $ 45,595,789Trustee's Collections - Prior Year 0 246,170 1,245,748Trustee's Collections - Bankruptcy 0 2,666 24,896Circuit Clerk/Clerk and Master Collections - Prior Years 0 75,159 392,248Interest and Penalty 0 51,088 308,733Payments in-Lieu-of Taxes - T.V.A. 0 524 3,830Payments in-Lieu-of Taxes - Local Utilities 0 101,559 742,788Payments in-Lieu-of Taxes - Other 0 1,412 34,006
County Local Option TaxesLocal Option Sales Tax 0 0 19,379Litigation Tax - General 0 0 212,273Litigation Tax - Special Purpose 0 0 23,780Litigation Tax - Jail, Workhouse, or Courthouse 0 0 341,439Litigation Tax - Courthouse Security 0 0 266,377Business Tax 0 182,704 1,333,906Mineral Severance Tax 0 0 18,306
Statutory Local TaxesBank Excise Tax 0 17,201 125,807Wholesale Beer Tax 0 0 339,774Other Statutory Local Taxes 0 0 171,018
Total Local Taxes $ 0 $ 6,899,258 $ 51,200,097
Licenses and PermitsLicenses
Marriage Licenses $ 0 $ 842 $ 6,237Cable TV Franchise 0 0 514,262
(Continued)
Debt Service Fund
Capital Projects
Fund
189
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Rural GeneralDebt Capital
Service Projects Total
Licenses and Permits (Cont.)Permits
Building Permits $ 0 $ 0 $ 176,445Other Permits 0 0 14,635
Total Licenses and Permits $ 0 $ 842 $ 711,579
Fines, Forfeitures, and PenaltiesCircuit Court
Fines $ 0 $ 0 $ 452Criminal Court
Fines 0 0 4,080Officers Costs 0 0 37,669Drug Control Fines 0 0 5,542Drug Court Fees 0 0 1,885Jail Fees 0 0 19,631DUI Treatment Fines 0 0 1,571Data Entry Fee - Criminal Court 0 0 7,369Courtroom Security Fee 0 0 29,717Victims Assistance Assessments 0 0 4,964
General Sessions CourtFines 0 0 67,186Officers Costs 0 0 103,938Game and Fish Fines 0 0 201Drug Control Fines 0 0 5,560Drug Court Fees 0 0 10,699Jail Fees 0 0 115,251DUI Treatment Fines 0 0 15,901
(Continued)
Debt Service Fund
Capital Projects
Fund
190
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Rural GeneralDebt Capital
Service Projects Total
Fines, Forfeitures, and Penalties (Cont.)General Sessions Court (Cont.)
Data Entry Fee - General Sessions Court $ 0 $ 0 $ 43,582Courtroom Security Fee 0 0 4,004Victims Assistance Assessments 0 0 42,311
Juvenile CourtFines 0 0 238Officers Costs 0 0 1,058Data Entry Fee - Juvenile Court 0 0 1,738
Chancery CourtOfficers Costs 0 0 4,228Data Entry Fee - Chancery Court 0 0 5,315Courtroom Security Fee 0 0 556
Other Courts - In-countyFines 0 0 2,263
Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 0 47,318
Total Fines, Forfeitures, and Penalties $ 0 $ 0 $ 584,227
Charges for Current ServicesGeneral Service Charges
Solid Waste Disposal Fee $ 0 $ 0 $ 2,067Surcharge - Waste Tire Disposal 0 0 109,692Work Release Charges for Board 0 0 6,695
FeesCopy Fees 0 0 916Library Fees 0 0 20,787
(Continued)
Debt Service Fund
Capital Projects
Fund
191
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Rural GeneralDebt Capital
Service Projects Total
Charges for Current Services (Cont.)Fees (Cont.)
Archives and Records Management Fee $ 0 $ 0 $ 261,641Telephone Commissions 0 0 172,619Electronic Citation Fee 0 0 1,466Constitutional Officers' Fees and Commissions 0 0 13,083Data Processing Fee - Register 0 0 40,546Data Processing Fee - Sheriff 0 0 7,488Sexual Offender Registration Fee - Sheriff 0 0 9,250Data Processing Fee - County Clerk 0 0 17,856Subscription and Document Retrieval Fee - Circuit 0 0 8,400Vehicle Insurance Coverage and Reinstatement Fees 0 0 3,710
Education ChargesOther Charges for Services 0 0 97,345
Total Charges for Current Services $ 0 $ 0 $ 773,561
Other Local RevenuesRecurring Items
Investment Income $ 2,419 $ 232,704 $ 678,938Lease/Rentals 0 0 168,214Sale of Materials and Supplies 0 0 3,161Commissary Sales 0 0 55,407Sale of Recycled Materials 0 0 186,551Miscellaneous Refunds 0 0 30,773
Nonrecurring ItemsSale of Equipment 0 0 211,617Damages Recovered from Individuals 0 0 3,943Contributions and Gifts 0 0 1,150
(Continued)
Debt Service Fund
Capital Projects
Fund
192
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Rural GeneralDebt Capital
Service Projects Total
Other Local Revenues (Cont.)Other Local Revenues
Other Local Revenues $ 0 $ 0 $ 3,165Total Other Local Revenues $ 2,419 $ 232,704 $ 1,342,919
Fees Received From County OfficialsFees In-Lieu-of Salary
County Clerk $ 0 $ 0 $ 1,258,690Circuit Court Clerk 0 0 737,126General Sessions Court Clerk 0 0 1,228,676Clerk and Master 0 0 462,215Register 0 0 599,947Sheriff 0 0 43,753Trustee 0 0 2,324,957
Total Fees Received From County Officials $ 0 $ 0 $ 6,655,364
State of TennesseeGeneral Government Grants
Juvenile Services Program $ 0 $ 0 $ 11,885Solid Waste Grants 0 0 26,828
Public Safety GrantsLaw Enforcement Training Programs 0 0 54,600Other Public Safety Grants 0 0 28,428
Health and Welfare GrantsHealth Department Programs 0 0 885,784
Public Works GrantsState Aid Program 0 0 1,144,750Litter Program 0 0 48,264
(Continued)
Debt Service Fund
Capital Projects
Fund
193
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Rural GeneralDebt Capital
Service Projects Total
State of Tennessee (Cont.)Other State Revenues
Income Tax $ 0 $ 0 $ 231,158Beer Tax 0 0 17,959Vehicle Certificate of Title Fees 0 0 17,998Alcoholic Beverage Tax 0 0 179,572State Revenue Sharing - Telecommunications 0 0 218,420Contracted Prisoner Boarding 0 0 1,769,196Gasoline and Motor Fuel Tax 0 0 3,127,591Petroleum Special Tax 0 0 88,735Registrar's Salary Supplement 0 0 15,164Other State Grants 0 0 2,100Other State Revenues 0 0 853,256
Total State of Tennessee $ 0 $ 0 $ 8,721,688
Federal GovernmentFederal Through State
Homeland Security Grants $ 0 $ 0 $ 152,973Law Enforcement Grants 0 0 18,026
Direct Federal RevenueAsset Forfeiture Funds 0 0 46,854Other Direct Federal Revenue 0 0 1,365,889
Total Federal Government $ 0 $ 0 $ 1,583,742
Other Governments and Citizens GroupsOther Governments
Paving and Maintenance $ 0 $ 0 $ 158,469
(Continued)
Debt Service Fund
Capital Projects
Fund
194
Exhibit K-5
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund Types (Cont.)
Rural GeneralDebt Capital
Service Projects Total
Other Governments and Citizens Groups (Cont.)Other Governments (Cont.)
Contributions $ 260,000 $ 0 $ 273,500Contracted Services 0 0 130,641
OtherOther 0 0 72,600
Total Other Governments and Citizens Groups $ 260,000 $ 0 $ 635,210
Total $ 262,419 $ 7,132,804 $ 72,208,387
Debt Service Fund
Capital Projects
Fund
195
Exhibit K-6
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund TypesDiscretely Presented Washington County School DepartmentFor the Year Ended June 30, 2019
General SchoolPurpose Federal CentralSchool Projects Cafeteria Total
Local TaxesCounty Property Taxes
Current Property Tax $ 12,965,421 $ 0 $ 0 $ 12,965,421Trustee's Collections - Prior Year 346,823 0 0 346,823Circuit Clerk/Clerk and Master Collections - Prior Years 116,409 0 0 116,409Interest and Penalty 89,795 0 0 89,795Payments in-Lieu-of Taxes - T.V.A. 2,034 0 0 2,034Payments in-Lieu-of Taxes - Local Utilities 208,002 0 0 208,002Payments in-Lieu-of Taxes - Other 15,233 0 0 15,233
County Local Option TaxesLocal Option Sales Tax 15,338,585 0 0 15,338,585Business Tax 369,150 0 0 369,150Mixed Drink Tax 1,161 0 0 1,161
Statutory Local TaxesBank Excise Tax 35,045 0 0 35,045
Total Local Taxes $ 29,487,658 $ 0 $ 0 $ 29,487,658
Licenses and PermitsLicenses
Marriage Licenses $ 1,739 $ 0 $ 0 $ 1,739Total Licenses and Permits $ 1,739 $ 0 $ 0 $ 1,739
Charges for Current ServicesEducation Charges
Tuition - Adult Education $ 3,500 $ 0 $ 0 $ 3,500Lunch Payments - Children 0 0 656,401 656,401
(Continued)
Special Revenue Funds
196
Exhibit K-6
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General SchoolPurpose Federal CentralSchool Projects Cafeteria Total
Charges for Current Services (Cont.)Education Charges (Cont.)
Lunch Payments - Adults $ 0 $ 0 $ 8,792 $ 8,792Income from Breakfast 0 0 143,531 143,531A la Carte Sales 0 0 57,799 57,799Community Service Fees - Children 552,401 0 0 552,401Other Charges for Services 0 0 149,520 149,520
Total Charges for Current Services $ 555,901 $ 0 $ 1,016,043 $ 1,571,944
Other Local RevenuesRecurring Items
Investment Income $ 141,714 $ 0 $ 4,449 $ 146,163Lease/Rentals 640 0 0 640
Nonrecurring ItemsSale of Equipment 49,891 0 0 49,891Contributions and Gifts 9,000 0 0 9,000
Other Local RevenuesOther Local Revenues 121,153 0 0 121,153
Total Other Local Revenues $ 322,398 $ 0 $ 4,449 $ 326,847
State of TennesseeGeneral Government Grants
On-behalf Contributions for OPEB $ 262,284 $ 0 $ 0 $ 262,284State Education Funds
Basic Education Program 34,726,532 0 0 34,726,532Early Childhood Education 154,846 0 0 154,846
(Continued)
Special Revenue Funds
197
Exhibit K-6
Washington County, TennesseeSchedule of Detailed Revenues -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General SchoolPurpose Federal CentralSchool Projects Cafeteria Total
State of Tennessee (Cont.)State Education Funds (Cont.)
Driver Education $ 73,773 $ 0 $ 0 $ 73,773Other State Education Funds 183,884 0 0 183,884Career Ladder Program 142,783 0 0 142,783
Other State RevenuesState Revenue Sharing - T.V.A. 1,231,386 0 0 1,231,386Other State Grants 425,483 0 0 425,483
Total State of Tennessee $ 37,200,971 $ 0 $ 0 $ 37,200,971
Federal GovernmentFederal Through State
USDA School Lunch Program $ 0 $ 0 $ 1,433,373 $ 1,433,373USDA - Commodities 0 0 207,169 207,169Breakfast 0 0 443,660 443,660USDA - Other 0 0 26,144 26,144Vocational Education - Basic Grants to States 0 127,208 0 127,208Title I Grants to Local Education Agencies 0 1,664,038 0 1,664,038Special Education - Grants to States 0 1,970,872 0 1,970,872Special Education Preschool Grants 0 46,768 0 46,768English Language Acquisition Grants 3,885 0 0 3,885Eisenhower Professional Development State Grants 0 318,431 0 318,431Other Federal through State 19,848 156,167 0 176,015
Direct Federal RevenueROTC Reimbursement 155,265 0 0 155,265
Total Federal Government $ 178,998 $ 4,283,484 $ 2,110,346 $ 6,572,828
Total $ 67,747,665 $ 4,283,484 $ 3,130,838 $ 75,161,987
Special Revenue Funds
198
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesFor the Year Ended June 30, 2019
General FundGeneral Government
County CommissionBoard and Committee Members Fees $ 74,250Other Per Diem and Fees 1,200Social Security 4,663Pensions 3,767Employer Medicare 1,091Dues and Memberships 7,270Maintenance Agreements 6,494Travel 6,168Tuition 1,845Other Contracted Services 1,800Other Supplies and Materials 62Other Charges 1,376Other Capital Outlay 5,950
Total County Commission $ 115,936
Board of EqualizationBoard and Committee Members Fees $ 6,210
Total Board of Equalization 6,210
County Mayor/ExecutiveCounty Official/Administrative Officer $ 127,169Assistant(s) 53,225Social Security 11,025Pensions 17,605Employee and Dependent Insurance 21,942Employer Medicare 2,578Other Fringe Benefits 222Communication 1,903Dues and Memberships 2,617Maintenance Agreements 1,266Rentals 3,459Travel 3,057Tuition 890Data Processing Supplies 1,241Duplicating Supplies 146Office Supplies 1,023Other Charges 244
Total County Mayor/Executive 249,612
County AttorneyCounty Official/Administrative Officer $ 70,000Supervisor/Director 63,750Paraprofessionals 39,131Social Security 10,448Pensions 13,041Employee and Dependent Insurance 15,790Employer Medicare 2,443
(Continued)
199
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)General Government (Cont.)
County Attorney (Cont.)Dues and Memberships $ 657Legal Services 139,306Maintenance Agreements 3,044Rentals 140Travel 981Tuition 1,868Office Supplies 592Periodicals 4,278Other Supplies and Materials 265Other Charges 431
Total County Attorney $ 366,165
Election CommissionCounty Official/Administrative Officer $ 81,893Deputy(ies) 170,819Part-time Personnel 39,770Election Commission 20,500Election Workers 115,231Social Security 21,051Pensions 23,566Employee and Dependent Insurance 60,912Employer Medicare 4,923Other Fringe Benefits 120Communication 27Data Processing Services 20,154Dues and Memberships 600Operating Lease Payments 880Legal Notices, Recording, and Court Costs 8,165Maintenance Agreements 18,032Postal Charges 14,000Printing, Stationery, and Forms 15,827Rentals 4,739Travel 8,221Tuition 3,475Other Contracted Services 8,080Data Processing Supplies 13,039Duplicating Supplies 811Office Supplies 4,139Liability Insurance 9,504Other Charges 1,337
Total Election Commission 669,815
Register of DeedsCounty Official/Administrative Officer $ 90,992Deputy(ies) 245,246Data Processing Personnel 396Part-time Personnel 12,794
(Continued)
200
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)General Government (Cont.)
Register of Deeds (Cont.)Social Security $ 20,296Pensions 31,062Employee and Dependent Insurance 85,846Employer Medicare 4,747Communication 269Dues and Memberships 893Maintenance Agreements 18,122Postal Charges 1,432Rentals 1,873Travel 1,173Tuition 395Data Processing Supplies 16,111Duplicating Supplies 895Office Supplies 9,637Other Charges 260
Total Register of Deeds $ 542,439
PlanningAssistant(s) $ 48,673Supervisor/Director 62,166Board and Committee Members Fees 3,960Social Security 6,995Pensions 10,844Employer Medicare 1,636Dues and Memberships 781Legal Notices, Recording, and Court Costs 1,438Maintenance Agreements 9,750Travel 766Tuition 435Data Processing Supplies 530Office Supplies 997
Total Planning 148,971
Codes ComplianceAssistant(s) $ 28,211Supervisor/Director 57,997Other Salaries and Wages 117,213Social Security 11,811Pensions 18,054Employee and Dependent Insurance 64,620Employer Medicare 2,762Communication 4,568Data Processing Services 484Dues and Memberships 150Maintenance Agreements 9,936Maintenance and Repair Services - Vehicles 218Postal Charges 1,300
(Continued)
201
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)General Government (Cont.)
Codes Compliance (Cont.)Rentals $ 5,114Travel 618Tuition 450Other Contracted Services 138Data Processing Supplies 3,654Duplicating Supplies 585Gasoline 5,966Office Supplies 8,428Periodicals 384Uniforms 797Vehicle Parts 240Other Supplies and Materials 503Vehicle and Equipment Insurance 1,274Other Charges 384
Total Codes Compliance $ 345,859
County BuildingsMaintenance Agreements $ 47,321Maintenance and Repair Services - Buildings 58,689Pest Control 2,190Rentals 9,643Permits 100Custodial Supplies 22,484Electricity 196,826Natural Gas 25,796Water and Sewer 9,313Other Supplies and Materials 1,280Building and Contents Insurance 43,254Other Charges 85
Total County Buildings 416,981
Other General AdministrationADA Coordinator $ 48,406Data Processing Personnel 38,481Custodial Personnel 53,772Part-time Personnel 11,909Social Security 8,149Pensions 13,742Employee and Dependent Insurance 47,196Employer Medicare 2,062Audit Services 53,737Communication 54,742Consultants 5,550Data Processing Services 10,808Dues and Memberships 3,665Legal Notices, Recording, and Court Costs 5,517Maintenance Agreements 4,323
(Continued)
202
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)General Government (Cont.)
Other General Administration (Cont.)Printing, Stationery, and Forms $ 1,728Rentals 1,490Travel 1,840Tuition 345Other Contracted Services 275Office Supplies 780Software 19,620Other Supplies and Materials 914Liability Insurance 65,916Trustee's Commission 502,568Vehicle and Equipment Insurance 1,244Workers' Compensation Insurance 247,049Liability Claims 500Tax Relief Program 366,207Other Charges 12,028Office Equipment 8,743
Total Other General Administration $ 1,593,306
Preservation of RecordsAssistant(s) $ 25,491Supervisor/Director 61,177Social Security 5,144Pensions 8,456Employee and Dependent Insurance 18,954Employer Medicare 1,203Architects 23,850Communication 823Maintenance Agreements 600Pest Control 361Postal Charges 50Travel 322Custodial Supplies 234Electricity 11,953Natural Gas 483Office Supplies 670Water and Sewer 608Other Supplies and Materials 16,233Building and Contents Insurance 1,084Other Charges 1,076Building Improvements 343,785
Total Preservation of Records 522,557
FinanceAccounting and Budgeting
Supervisor/Director $ 137,335Accountants/Bookkeepers 168,882Part-time Personnel 13,282
(Continued)
203
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Finance (Cont.)
Accounting and Budgeting (Cont.)Social Security $ 16,095Pensions 24,765Employee and Dependent Insurance 42,444Employer Medicare 3,765Communication 1,410Data Processing Services 26,916Maintenance Agreements 3,854Postal Charges 54Travel 114Tuition 559Data Processing Supplies 5,657Duplicating Supplies 382Office Supplies 3,477Fines, Assessments, and Penalties 10Data Processing Equipment 873
Total Accounting and Budgeting $ 449,874
PurchasingSupervisor/Director $ 63,344Purchasing Personnel 74,546Social Security 8,134Pensions 13,454Employee and Dependent Insurance 33,210Employer Medicare 1,902Communication 1,339Legal Notices, Recording, and Court Costs 3,231Maintenance Agreements 216Duplicating Supplies 374Office Supplies 1,450Other Charges 294
Total Purchasing 201,494
Property Assessor's OfficeCounty Official/Administrative Officer $ 90,992Deputy(ies) 66,653Other Salaries and Wages 37,097Social Security 11,791Pensions 19,004Employee and Dependent Insurance 32,940Employer Medicare 2,758Communication 581Data Processing Services 32,198Dues and Memberships 3,320Legal Notices, Recording, and Court Costs 191Maintenance Agreements 4,706Postal Charges 1,000Travel 426
(Continued)
204
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Finance (Cont.)
Property Assessor's Office (Cont.)Tuition $ 853Data Processing Supplies 620Duplicating Supplies 180Gasoline 917Office Supplies 2,052Vehicle and Equipment Insurance 2,544Other Charges 662
Total Property Assessor's Office $ 311,485
Reappraisal ProgramDeputy(ies) $ 237,154Other Salaries and Wages 68,105Social Security 17,903Pensions 27,900Employee and Dependent Insurance 94,086Employer Medicare 4,187Other Fringe Benefits 282Accounting Services 39,030Data Processing Services 11,558Maintenance Agreements 516Maintenance and Repair Services - Vehicles 421Postal Charges 24,530Data Processing Supplies 6,604Gasoline 2,545Office Supplies 4,059Motor Vehicles 1,038
Total Reappraisal Program 539,918
County Trustee's OfficeCounty Official/Administrative Officer $ 90,992Deputy(ies) 162,300Temporary Personnel 41,437Social Security 16,696Pensions 24,717Employee and Dependent Insurance 60,912Employer Medicare 4,038Communication 1,813Data Processing Services 53,679Dues and Memberships 918Legal Notices, Recording, and Court Costs 714Postal Charges 1,470Rentals 27,470Travel 1,676Tuition 80Disposal Fees 240Other Contracted Services 5,425Duplicating Supplies 464
(Continued)
205
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Finance (Cont.)
County Trustee's Office (Cont.)Electricity $ 1,920Natural Gas 517Office Supplies 7,438Premiums on Corporate Surety Bonds 36,018Other Charges 323Office Equipment 191
Total County Trustee's Office $ 541,448
County Clerk's OfficeCounty Official/Administrative Officer $ 90,992Deputy(ies) 485,671Social Security 33,334Pensions 56,268Employee and Dependent Insurance 189,432Employer Medicare 7,796Communication 2,604Dues and Memberships 933Maintenance Agreements 30,343Postal Charges 27,500Rentals 29,785Travel 1,441Other Contracted Services 5,425Data Processing Supplies 7,847Duplicating Supplies 2,643Electricity 1,920Natural Gas 517Office Supplies 4,899Other Charges 859
Total County Clerk's Office 980,209
Administration of JusticeCircuit Court
County Official/Administrative Officer $ 100,092Deputy(ies) 1,150,830Part-time Personnel 15,460Overtime Pay 9,666Social Security 74,413Pensions 109,196Employee and Dependent Insurance 453,920Employer Medicare 17,404Other Fringe Benefits 126Communication 1,010Dues and Memberships 853Maintenance Agreements 59,141Postal Charges 20,000Printing, Stationery, and Forms 7,421Rentals 7,020
(Continued)
206
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Administration of Justice (Cont.)
Circuit Court (Cont.)Travel $ 2,851Tuition 625Data Processing Supplies 13,784Duplicating Supplies 3,601Office Supplies 13,580Periodicals 537Other Charges 591Data Processing Equipment 12,935
Total Circuit Court $ 2,075,056
General Sessions JudgeJudge(s) $ 500,592Part-time Personnel 5,700Social Security 24,164Pensions 48,858Employee and Dependent Insurance 46,926Employer Medicare 7,208Other Fringe Benefits 90Dues and Memberships 3,293Licenses 174Travel 8,475Tuition 765Office Supplies 952Periodicals 459Other Supplies and Materials 234Hazardous Waste Cleanup 12,974
Total General Sessions Judge 660,864
Drug CourtContracts with Private Agencies $ 15,000
Total Drug Court 15,000
Chancery CourtCounty Official/Administrative Officer $ 100,092Deputy(ies) 344,783Part-time Personnel 2,643Social Security 26,538Pensions 43,409Employee and Dependent Insurance 116,932Employer Medicare 6,207Communication 779Dues and Memberships 853Legal Notices, Recording, and Court Costs 15,044Licenses 570Maintenance Agreements 51,491Postal Charges 5,000Rentals 4,350
(Continued)
207
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Administration of Justice (Cont.)
Chancery Court (Cont.)Tuition $ 350Duplicating Supplies 973Office Supplies 8,709Periodicals 1,195Other Charges 223
Total Chancery Court $ 730,141
District Attorney GeneralContracts with Government Agencies $ 34,941Other Contracted Services 55,100
Total District Attorney General 90,041
Other Administration of JusticePart-time Personnel $ 27,882Jury and Witness Expense 17,376Other Per Diem and Fees 4,755Social Security 1,729Employer Medicare 404Evaluation and Testing 5,331Legal Notices, Recording, and Court Costs 105,681Maintenance and Repair Services - Office Equipment 55
Total Other Administration of Justice 163,213
Courtroom SecurityDeputy(ies) $ 381,538Sergeant(s) 53,867Social Security 25,737Pensions 39,141Employee and Dependent Insurance 140,996Employer Medicare 6,019Other Equipment 26,854
Total Courtroom Security 674,152
Victim Assistance ProgramsContributions $ 47,255
Total Victim Assistance Programs 47,255
Public SafetySheriff's Department
County Official/Administrative Officer $ 121,112Deputy(ies) 2,648,612Lieutenant(s) 811,084Sergeant(s) 346,165Salary Supplements 54,600Part-time Personnel 7,384Other Salaries and Wages 753,554Social Security 276,657
(Continued)
208
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Safety (Cont.)
Sheriff's Department (Cont.)Pensions $ 456,360Employee and Dependent Insurance 1,465,652Employer Medicare 64,706Other Fringe Benefits 2,784Communication 91,845Contracts with Government Agencies 52,800Data Processing Services 599Dues and Memberships 5,046Legal Notices, Recording, and Court Costs 442Licenses 551Maintenance Agreements 86,351Maintenance and Repair Services - Equipment 3,910Maintenance and Repair Services - Vehicles 16,815Medical and Dental Services 547Postal Charges 4,358Printing, Stationery, and Forms 4,248Rentals 45,603Travel 20,867Tuition 26,587Veterinary Services 4,716Other Contracted Services 14,748Animal Food and Supplies 3,414Data Processing Supplies 27,603Duplicating Supplies 544Food Supplies 166Garage Supplies 12,124Gasoline 232,973Law Enforcement Supplies 157,075Lubricants 7,086Office Supplies 23,710Periodicals 2,567Small Tools 3,456Tires and Tubes 22,446Uniforms 80,259Vehicle Parts 58,108Software 1,930Other Supplies and Materials 26,461Building and Contents Insurance 1,072Liability Insurance 94,898Vehicle and Equipment Insurance 63,236Liability Claims 1,000Other Charges 21,755Motor Vehicles 460,207
Total Sheriff's Department $ 8,690,793
Administration of the Sexual Offender RegistryRemittance of Revenue Collected $ 600
Total Administration of the Sexual Offender Registry 600
(Continued)
209
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Safety (Cont.)
JailDeputy(ies) $ 2,439,602Lieutenant(s) 397,496Sergeant(s) 226,565Part-time Personnel 44,169Other Salaries and Wages 616,691Social Security 218,556Pensions 323,113Employee and Dependent Insurance 1,098,926Employer Medicare 51,298Other Fringe Benefits 1,638Advertising 1,377Communication 8,081Contracts with Private Agencies 1,660,390Dues and Memberships 300Maintenance Agreements 229,518Maintenance and Repair Services - Buildings 49,918Maintenance and Repair Services - Equipment 9,527Medical and Dental Services 6,683Pest Control 5,500Postal Charges 250Printing, Stationery, and Forms 3,944Rentals 11,994Transportation - Other than Students 2,218Travel 5,847Tuition 440Disposal Fees 9,882Other Contracted Services 2,489Custodial Supplies 107,778Data Processing Supplies 22,315Diesel Fuel 500Duplicating Supplies 4,159Electricity 317,201Food Preparation Supplies 14,804Food Supplies 756,157Law Enforcement Supplies 7,884Natural Gas 74,325Office Supplies 13,416Prisoners Clothing 38,345Uniforms 24,071Water and Sewer 115,802Chemicals 1,085Software 8,050Other Supplies and Materials 42,468Building and Contents Insurance 52,816Liability Claims 896Other Charges 4,371Data Processing Equipment 14,881
(Continued)
210
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Safety (Cont.)
Jail (Cont.)Food Service Equipment $ 126,644Other Equipment 9,250
Total Jail $ 9,183,630
Juvenile ServicesSupervisor/Director $ 51,833Youth Service Officer(s) 89,707Paraprofessionals 48,314Social Security 11,328Pensions 18,494Employee and Dependent Insurance 39,922Employer Medicare 2,650Other Fringe Benefits 117Advertising 192Communication 2,194Contracts with Government Agencies 4,500Contracts with Other Public Agencies 178,979Data Processing Services 3,750Dues and Memberships 100Maintenance Agreements 1,251Postal Charges 3,000Rentals 624Travel 3,622Tuition 760Duplicating Supplies 232Office Supplies 5,186Other Charges 221
Total Juvenile Services 466,976
Work Release ProgramBoard and Committee Members Fees $ 7,740Social Security 478Pensions 252Employer Medicare 112
Total Work Release Program 8,582
Fire Prevention and ControlContributions $ 899,050
Total Fire Prevention and Control 899,050
Civil DefenseAdvertising $ 371Communication 1,405Contributions 109,058Data Processing Supplies 4,988Office Supplies 794Vehicle Parts 185
(Continued)
211
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Safety (Cont.)
Civil Defense (Cont.)Other Supplies and Materials $ 599Other Charges 22Motor Vehicles 35,402
Total Civil Defense $ 152,824
Rescue SquadContributions $ 84,300
Total Rescue Squad 84,300
County Coroner/Medical ExaminerOther Charges $ 340,918
Total County Coroner/Medical Examiner 340,918
Other Public SafetySupervisor/Director $ 6,446Social Security 400Pensions 629Employer Medicare 93Contributions 747,273
Total Other Public Safety 754,841
Public Health and WelfareLocal Health Center
Medical Personnel $ 197,238Clerical Personnel 348,400Custodial Personnel 21,169Part-time Personnel 36,453Other Salaries and Wages 441,253Social Security 59,927Pensions 80,754Employee and Dependent Insurance 336,480Employer Medicare 14,370Other Fringe Benefits 147Communication 42,831Contracts with Government Agencies 17,400Dues and Memberships 175Maintenance Agreements 24,355Maintenance and Repair Services - Buildings 21,667Maintenance and Repair Services - Equipment 3,956Pest Control 182Postal Charges 3,000Printing, Stationery, and Forms 1,716Rentals 12,491Travel 5,778Tuition 50Other Contracted Services 5,270Custodial Supplies 14,128
(Continued)
212
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Health and Welfare (Cont.)
Local Health Center (Cont.)Drugs and Medical Supplies $ 83,004Duplicating Supplies 1,739Electricity 52,792Natural Gas 2,881Office Supplies 25,003Water and Sewer 11,193Other Supplies and Materials 24,324Building and Contents Insurance 8,387Liability Insurance 6,642Workers' Compensation Insurance 3,100Other Charges 9,503
Total Local Health Center $ 1,917,758
Rabies and Animal ControlContributions $ 190,000
Total Rabies and Animal Control 190,000
Ambulance/Emergency Medical ServicesContributions $ 1,762,400
Total Ambulance/Emergency Medical Services 1,762,400
Alcohol and Drug ProgramsInvestigator(s) $ 5,000Social Security 305Pensions 488Employer Medicare 71
Total Alcohol and Drug Programs 5,864
Regional Mental Health CenterContributions $ 17,000
Total Regional Mental Health Center 17,000
General Welfare AssistanceContributions $ 47,000Pauper Burials 31,738
Total General Welfare Assistance 78,738
Aid to Dependent ChildrenContributions $ 19,650
Total Aid to Dependent Children 19,650
Sanitation Education/InformationOther Salaries and Wages $ 41,115Social Security 2,340Pensions 4,012Employee and Dependent Insurance 18,954Employer Medicare 547
(Continued)
213
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Public Health and Welfare (Cont.)
Sanitation Education/Information (Cont.)Other Contracted Services $ 22,200Other Supplies and Materials 7,231
Total Sanitation Education/Information $ 96,399
Social, Cultural, and Recreational ServicesAdult Activities
Contributions $ 119,977Total Adult Activities 119,977
LibrariesAssistant(s) $ 67,600Supervisor/Director 54,868Deputy(ies) 135,561Custodial Personnel 14,326Part-time Personnel 95,653Social Security 22,151Pensions 24,106Employee and Dependent Insurance 69,352Employer Medicare 5,181Communication 3,993Contracts with Private Agencies 14,810Contributions 100,000Data Processing Services 1,404Maintenance Agreements 15,688Maintenance and Repair Services - Buildings 3,156Pest Control 640Postal Charges 500Rentals 2,691Travel 450Tuition 70Other Contracted Services 2,250Custodial Supplies 3,164Data Processing Supplies 7,669Electricity 17,727Library Books/Media 80,895Natural Gas 1,286Office Supplies 10,098Periodicals 4,013Water and Sewer 2,015Other Supplies and Materials 7,285Building and Contents Insurance 2,276Liability Insurance 1,984Other Charges 161Other Capital Outlay 7,284
Total Libraries 780,307
(Continued)
214
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Social, Cultural, and Recreational Services (Cont.)
Other Social, Cultural, and RecreationalContributions $ 121,050
Total Other Social, Cultural, and Recreational $ 121,050
Agriculture and Natural ResourcesAgricultural Extension Service
Clerical Personnel $ 22,435Social Security 1,124Pensions 2,189Employee and Dependent Insurance 18,954Employer Medicare 263Communication 3,043Contracts with Government Agencies 230,547Dues and Memberships 590Maintenance Agreements 1,197Maintenance and Repair Services - Buildings 5,592Pest Control 550Rentals 4,327Travel 8,517Tuition 120Custodial Supplies 543Data Processing Supplies 4,928Electricity 2,947Natural Gas 946Office Supplies 4,702Water and Sewer 755Other Supplies and Materials 3,433Building and Contents Insurance 470Other Charges 110
Total Agricultural Extension Service 318,282
Forest ServiceForest Resource Services $ 1,500
Total Forest Service 1,500
Soil ConservationOther Salaries and Wages $ 75,799Social Security 4,450Pensions 5,480Employee and Dependent Insurance 23,072Employer Medicare 1,041Contributions 19,350
Total Soil Conservation 129,192
Storm Water ManagementConsultants $ 31,500Other Contracted Services 24,497
Total Storm Water Management 55,997
(Continued)
215
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Fund (Cont.)Agriculture and Natural Resources (Cont.)
Other Agriculture and Natural ResourcesOther Charges $ 2,500
Total Other Agriculture and Natural Resources $ 2,500
Other OperationsTourism
Contributions $ 7,000Total Tourism 7,000
Other Economic and Community DevelopmentContracts with Government Agencies $ 462,226Contributions 189,768Other Contracted Services 7,200Other Charges 7,112
Total Other Economic and Community Development 666,306
AirportContributions $ 17,594Nonexchange Financial Guarantees 559,493
Total Airport 577,087
Veterans' ServicesCommunication $ 797Dues and Memberships 25Travel 617Other Contracted Services 44,000Office Supplies 883Other Supplies and Materials 302Other Charges 449
Total Veterans' Services 47,073
Contributions to Other AgenciesContributions $ 87,252
Total Contributions to Other Agencies 87,252
Employee BenefitsLife Insurance $ 28,481Unemployment Compensation 1,972
Total Employee Benefits 30,453
Capital Projects - DonatedCapital Projects Donated to Other Entities
Other Capital Outlay $ 123,187Total Capital Projects Donated to Other Entities 123,187
Total General Fund $ 40,195,487
(Continued)
216
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Solid Waste/Sanitation FundPublic Health and Welfare
Convenience CentersSupervisor/Director $ 53,291Foremen 37,384Truck Drivers 104,092Attendants 232,473Part-time Personnel 41,290Social Security 27,473Pensions 38,870Employee and Dependent Insurance 165,447Employer Medicare 6,425Communication 6,529Dues and Memberships 100Maintenance and Repair Services - Buildings 3,942Maintenance and Repair Services - Equipment 68,439Maintenance and Repair Services - Vehicles 45,876Rentals 21,990Towing Services 300Travel 423Disposal Fees 339,247Other Contracted Services 36Diesel Fuel 47,653Electricity 10,162Equipment and Machinery Parts 478Gasoline 5,934Instructional Supplies and Materials 800Lubricants 1,937Office Supplies 547Propane Gas 540Tires and Tubes 16,531Water and Sewer 2,495Other Supplies and Materials 4,595Building and Contents Insurance 264Liability Insurance 2,975Vehicle and Equipment Insurance 4,982Workers' Compensation Insurance 15,534Other Charges 1,304
Total Convenience Centers $ 1,310,358
Other Waste DisposalForemen $ 39,869Attendants 20,944Part-time Personnel 17,182Social Security 4,634Pensions 5,895Employee and Dependent Insurance 14,256Employer Medicare 1,078Communication 1,427Contracts with Private Agencies 77,486
(Continued)
217
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Solid Waste/Sanitation Fund (Cont.)Public Health and Welfare (Cont.)
Other Waste Disposal (Cont.)Maintenance and Repair Services - Buildings $ 254Travel 444Tuition 315Permits 175Electricity 1,085Office Supplies 382Water and Sewer 213Other Supplies and Materials 524Trustee's Commission 21,187
Total Other Waste Disposal $ 207,350
Total Solid Waste/Sanitation Fund $ 1,517,708
Drug Control FundPublic Safety
Drug EnforcementContributions $ 1,000Travel 305Law Enforcement Supplies 15,944Other Supplies and Materials 442Trustee's Commission 616
Total Drug Enforcement $ 18,307
Total Drug Control Fund 18,307
Constitutional Officers - Fees FundGeneral Government
Register of DeedsConstitutional Officers' Operating Expenses $ 81
Total Register of Deeds $ 81
FinanceCounty Clerk's Office
Constitutional Officers' Operating Expenses $ 425Total County Clerk's Office 425
Administration of JusticeCircuit Court
Constitutional Officers' Operating Expenses $ 3,606Total Circuit Court 3,606
General Sessions CourtConstitutional Officers' Operating Expenses $ 8,971
Total General Sessions Court 8,971
Total Constitutional Officers - Fees Fund 13,083
(Continued)
218
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Highway/Public Works FundHighways
AdministrationCounty Official/Administrative Officer $ 110,102Assistant(s) 78,255Computer Programmer(s) 41,475Secretary(ies) 91,000Other Salaries and Wages 15,763Social Security 20,113Pensions 32,845Employee and Dependent Insurance 54,324Life Insurance 5,704Unemployment Compensation 1,211Employer Medicare 4,704Other Fringe Benefits 300Communication 7,931Dues and Memberships 4,697Freight Expenses 45Legal Notices, Recording, and Court Costs 82Licenses 162Maintenance Agreements 13,369Maintenance and Repair Services - Buildings 5,813Postal Charges 281Printing, Stationery, and Forms 436Travel 6,732Tuition 2,320Other Contracted Services 18,631Data Processing Supplies 4,946Electricity 3,740General Construction Materials 623Natural Gas 1,954Office Supplies 3,452Water and Sewer 871Software 525Other Supplies and Materials 2,509Building and Contents Insurance 9,771Liability Insurance 10,166Trustee's Commission 131,862Vehicle and Equipment Insurance 34,980Workers' Compensation Insurance 110,119Other Charges 4,446Building Improvements 5,787
Total Administration $ 842,046
Highway and Bridge MaintenanceSupervisor/Director $ 67,746Foremen 200,387Equipment Operators - Heavy 320,931Equipment Operators - Light 199,283Truck Drivers 285,460
(Continued)
219
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Highway/Public Works Fund (Cont.)Highways (Cont.)
Highway and Bridge Maintenance (Cont.)Laborers $ 214,606Overtime Pay 1,793Social Security 75,445Pensions 122,779Employee and Dependent Insurance 476,888Employer Medicare 17,643Communication 10,184Freight Expenses 1,539Maintenance and Repair Services - Equipment 155Rentals 66Disposal Fees 781Permits 2,500Other Contracted Services 14,692Concrete 2,211Crushed Stone 18,199Diesel Fuel 75,324Electricity 7,893Equipment Parts - Light 1,501Fertilizer, Lime, and Seed 1,382Gasoline 63,642General Construction Materials 828Ice 206Pipe - Metal 12,664Salt 10,601Small Tools 5,066Uniforms 13,665Water and Sewer 1,431Other Supplies and Materials 44,449Other Charges 13,523
Total Highway and Bridge Maintenance $ 2,285,463
Operation and Maintenance of EquipmentMaterials Supervisor $ 45,157Foremen 151,008Mechanic(s) 112,029Overtime Pay 118Social Security 18,248Pensions 30,082Employee and Dependent Insurance 85,725Employer Medicare 4,268Communication 3,360Freight Expenses 7,259Maintenance and Repair Services - Buildings 7,987Maintenance and Repair Services - Equipment 21,050Maintenance and Repair Services - Vehicles 17,995Towing Services 80Other Contracted Services 2,980
(Continued)
220
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Highway/Public Works Fund (Cont.)Highways (Cont.)
Operation and Maintenance of Equipment (Cont.)Electricity $ 6,312Equipment Parts - Heavy 122,501Equipment Parts - Light 103,837Equipment and Machinery Parts 214Garage Supplies 11,023General Construction Materials 2,151Lubricants 22,229Office Supplies 163Propane Gas 9,788Small Tools 5,105Tires and Tubes 38,581Vehicle Parts 697Other Supplies and Materials 22,232Other Charges 87Highway Equipment 5,058
Total Operation and Maintenance of Equipment $ 857,324
Asphalt Plant OperationsForemen $ 97,003Equipment Operators 258,560Truck Drivers 459,444Laborers 182,930Overtime Pay 4,232Other Salaries and Wages 2,648Social Security 58,374Pensions 94,198Employee and Dependent Insurance 365,596Employer Medicare 13,652Communication 3,406Freight Expenses 22,418Rentals 72Other Contracted Services 70,689Asphalt - Hot Mix 553,655Asphalt - Liquid 52,462Crushed Stone 169,192Diesel Fuel 117,455Electricity 47,775Equipment and Machinery Parts 10,301Fuel Oil 83,160General Construction Materials 43Lubricants 2,205Natural Gas 693Sand 6,189Water and Sewer 1,721Other Supplies and Materials 8,406State Aid Projects 871,211
Total Asphalt Plant Operations 3,557,690
(Continued)
221
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
Highway/Public Works Fund (Cont.)Highways (Cont.)
Traffic ControlMaterials Supervisor $ 36,962Laborers 19,878Overtime Pay 32Social Security 3,348Pensions 5,538Employee and Dependent Insurance 18,954Employer Medicare 783Freight Expenses 229Road Signs 10,724Small Tools 136Chemicals 3,000Other Supplies and Materials 370Other Charges 104
Total Traffic Control $ 100,058
Capital OutlayFreight Expenses $ 579Other Contracted Services 4,034Bridge Construction 151,935Building Construction 20,310Highway Construction 616,044Highway Equipment 164,825Motor Vehicles 363,868Right-of-Way 5,700Other Equipment 21,360
Total Capital Outlay 1,348,655
Total Highway/Public Works Fund $ 8,991,236
General Debt Service FundPrincipal on Debt
General GovernmentPrincipal on Bonds $ 160,000Principal on Notes 260,000Principal on Other Loans 730,000
Total General Government $ 1,150,000
Highways and StreetsPrincipal on Notes $ 231,188
Total Highways and Streets 231,188
EducationPrincipal on Bonds $ 1,670,000Principal on Notes 73,812Principal on Other Loans 3,420,000
Total Education 5,163,812
(Continued)
222
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Debt Service Fund (Cont.)Interest on Debt
General GovernmentInterest on Bonds $ 1,161,418Interest on Notes 20,275Interest on Other Loans 36,500
Total General Government $ 1,218,193
Highways and StreetsInterest on Notes $ 44,660
Total Highways and Streets 44,660
EducationInterest on Bonds $ 4,518,062Interest on Notes 16,415Interest on Other Loans 171,000
Total Education 4,705,477
Other Debt ServiceGeneral Government
Trustee's Commission $ 257,923Other Debt Service 14,170
Total General Government 272,093
Total General Debt Service Fund $ 12,785,423
Rural Debt Service FundPrincipal on Debt
EducationPrincipal on Bonds $ 210,000
Total Education $ 210,000
Interest on DebtEducation
Interest on Bonds $ 49,850Total Education 49,850
Total Rural Debt Service Fund 259,850
General Capital Projects FundCapital Projects
General Administration ProjectsTrustee's Commission $ 135,773Building Improvements 561,890Motor Vehicles 45,000Other Capital Outlay 19,477
Total General Administration Projects $ 762,140
Administration of Justice ProjectsOther Capital Outlay $ 60,330
Total Administration of Justice Projects 60,330
(Continued)
223
Exhibit K-7
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund Types (Cont.)
General Capital Projects Fund (Cont.)Capital Projects (Cont.)
Public Health and Welfare ProjectsBuilding Improvements $ 16,000Other Capital Outlay 13,119
Total Public Health and Welfare Projects $ 29,119
Social, Cultural, and Recreation ProjectsSite Development $ 1,671,297
Total Social, Cultural, and Recreation Projects 1,671,297
Public Utility ProjectsConsultants $ 27,715
Total Public Utility Projects 27,715
Education Capital ProjectsArchitects $ 100,305Building Construction 14,256,717Building Improvements 249,530Data Processing Equipment 639,823Furniture and Fixtures 599,174Transportation Equipment 402,827
Total Education Capital Projects 16,248,376
Capital Projects - DonatedCapital Projects Donated to Other Entities
Right-of-Way $ 154,718Other Capital Outlay 449,683
Total Capital Projects Donated to Other Entities 604,401
Total General Capital Projects Fund $ 19,403,378
Total Governmental Funds - Primary Government $ 83,184,472
224
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School DepartmentFor the Year Ended June 30, 2019
General Purpose School FundInstruction
Regular Instruction ProgramTeachers $ 20,930,078Career Ladder Program 79,181Homebound Teachers 14,000Educational Assistants 1,008,437Certified Substitute Teachers 172,237Non-certified Substitute Teachers 218,968Social Security 1,298,969Pensions 2,297,064Life Insurance 15,000Medical Insurance 3,836,215Unemployment Compensation 25,381Employer Medicare 308,162Other Fringe Benefits 23,862Other Contracted Services 3,802,128Instructional Supplies and Materials 166,309Textbooks - Bound 62,379Other Supplies and Materials 340,895
Total Regular Instruction Program $ 34,599,265
Special Education ProgramTeachers $ 2,341,268Career Ladder Program 9,000Homebound Teachers 10,980Educational Assistants 238,252Speech Pathologist 220,836Other Salaries and Wages 127,370Certified Substitute Teachers 10,550Non-certified Substitute Teachers 22,248Social Security 172,762Pensions 308,136Life Insurance 1,734Medical Insurance 521,655Employer Medicare 40,404Other Contracted Services 5,924Instructional Supplies and Materials 22,092Other Charges 1,824
Total Special Education Program 4,055,035
Career and Technical Education ProgramTeachers $ 1,638,185Career Ladder Program 1,000Certified Substitute Teachers 14,905Non-certified Substitute Teachers 14,488Social Security 97,235Pensions 180,741Life Insurance 870
(Continued)
225
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General Purpose School Fund (Cont.)Instruction (Cont.)
Career and Technical Education Program (Cont.)Medical Insurance $ 245,360Employer Medicare 22,740Instructional Supplies and Materials 76,595Vocational Instruction Equipment 23,808
Total Career and Technical Education Program $ 2,315,927
Adult Education ProgramTeachers $ 2,250Social Security 86Pensions 157Employer Medicare 20Instructional Supplies and Materials 2,250
Total Adult Education Program 4,763
Support ServicesAttendance
Supervisor/Director $ 68,507Career Ladder Program 1,000Clerical Personnel 23,788Social Security 5,460Pensions 9,592Life Insurance 44Medical Insurance 15,982Employer Medicare 1,277Travel 6,577Other Supplies and Materials 2,500
Total Attendance 134,727
Health ServicesMedical Personnel $ 190,402Other Salaries and Wages 312,661Social Security 28,608Pensions 42,425Life Insurance 362Medical Insurance 122,523Employer Medicare 6,719Travel 9,315Other Contracted Services 1,113Other Supplies and Materials 12,627Other Charges 4,459
Total Health Services 731,214
Other Student SupportCareer Ladder Program $ 2,000Guidance Personnel 891,937Social Security 52,213
(Continued)
226
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Other Student Support (Cont.)Pensions $ 90,605Life Insurance 486Medical Insurance 144,483Employer Medicare 12,211Contracts with Government Agencies 90,000Evaluation and Testing 54,206Other Supplies and Materials 6,948
Total Other Student Support $ 1,345,089
Regular Instruction ProgramSupervisor/Director $ 272,356Career Ladder Program 4,000Librarians 769,054Clerical Personnel 157,144Other Salaries and Wages 130,544Social Security 82,606Pensions 139,089Life Insurance 700Medical Insurance 184,864Employer Medicare 19,478Maintenance and Repair Services - Equipment 18,611Travel 46,043Library Books/Media 91,492In Service/Staff Development 143,722
Total Regular Instruction Program 2,059,703
Special Education ProgramSupervisor/Director $ 146,582Psychological Personnel 54,028Assessment Personnel 139,271Clerical Personnel 35,925Speech Pathologist 203,256Other Salaries and Wages 47,540Social Security 37,637Pensions 64,958Life Insurance 303Medical Insurance 61,619Employer Medicare 8,802Travel 30,715Other Contracted Services 53,320Other Supplies and Materials 6,063In Service/Staff Development 4,488
Total Special Education Program 894,507
Career and Technical Education ProgramSupervisor/Director $ 24,169
(Continued)
227
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Career and Technical Education Program (Cont.)Career Ladder Program $ 2,000Secretary(ies) 29,299Social Security 3,175Pensions 5,645Life Insurance 44Medical Insurance 19,477Employer Medicare 743Maintenance and Repair Services - Equipment 2,599Travel 34,767Other Supplies and Materials 1,771
Total Career and Technical Education Program $ 123,689
TechnologySupervisor/Director $ 70,046Data Processing Personnel 148,978Instructional Computer Personnel 51,050Other Salaries and Wages 381,027Social Security 37,101Pensions 61,280Life Insurance 326Medical Insurance 113,422Employer Medicare 9,082Internet Connectivity 65,560Travel 5,643Other Contracted Services 401,475Other Supplies and Materials 315,180
Total Technology 1,660,170
Other ProgramsOn-behalf Payments to OPEB $ 262,284
Total Other Programs 262,284
Board of EducationBoard and Committee Members Fees $ 33,615Social Security 1,641Pensions 2,083Medical Insurance 14,345Employer Medicare 439Audit Services 95,076Dues and Memberships 12,197Legal Services 56,217Travel 22,966Building and Contents Insurance 370,000Liability Insurance 128,771Premiums on Corporate Surety Bonds 6,300Trustee's Commission 524,059
(Continued)
228
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Board of Education (Cont.)Workers' Compensation Insurance $ 464,954Other Charges 14,978
Total Board of Education $ 1,747,641
Director of SchoolsCounty Official/Administrative Officer $ 135,367Secretary(ies) 174,369Other Salaries and Wages 34,351Social Security 20,384Pensions 39,696Life Insurance 157Medical Insurance 70,179Employer Medicare 4,767Communication 56,502Postal Charges 13,508Travel 10,432Other Contracted Services 86,203Office Supplies 4,926
Total Director of Schools 650,841
Office of the PrincipalPrincipals $ 936,505Career Ladder Program 12,000Assistant Principals 840,730Secretary(ies) 728,022Other Salaries and Wages 118,462Social Security 154,929Pensions 240,272Life Insurance 1,302Medical Insurance 490,442Employer Medicare 36,234Communication 20,000Travel 6,962Other Supplies and Materials 44,484Other Charges 65,511
Total Office of the Principal 3,695,855
Fiscal ServicesSupervisor/Director $ 86,565Clerical Personnel 170,632Social Security 15,094Pensions 25,279Life Insurance 60Medical Insurance 45,411Employer Medicare 3,530Travel 2,414
(Continued)
229
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Fiscal Services (Cont.)Other Contracted Services $ 13,530Other Supplies and Materials 2,477
Total Fiscal Services $ 364,992
Operation of PlantCustodial Personnel $ 673,918Other Salaries and Wages 145,363Social Security 47,211Pensions 71,947Life Insurance 695Medical Insurance 201,064Employer Medicare 11,041Janitorial Services 832,782Disposal Fees 136,214Other Contracted Services 116,778Custodial Supplies 118,238Electricity 2,041,773Natural Gas 72,192Water and Sewer 295,855Other Supplies and Materials 69,925Boiler Insurance 20,000Other Charges 37,790
Total Operation of Plant 4,892,786
Maintenance of PlantSupervisor/Director $ 72,958Maintenance Personnel 732,751Social Security 47,638Pensions 73,144Life Insurance 281Medical Insurance 140,135Employer Medicare 11,141Communication 2,450Maintenance and Repair Services - Buildings 12,757Maintenance and Repair Services - Equipment 65,553Other Supplies and Materials 483,608Other Charges 25,084Administration Equipment 229,517
Total Maintenance of Plant 1,897,017
TransportationSupervisor/Director $ 63,671Mechanic(s) 186,517Bus Drivers 1,086,014Social Security 76,997Pensions 121,303
(Continued)
230
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General Purpose School Fund (Cont.)Support Services (Cont.)
Transportation (Cont.)Life Insurance $ 1,517Medical Insurance 361,667Employer Medicare 18,416Communication 746Operating Lease Payments 9,223Other Contracted Services 4,931Diesel Fuel 276,902Garage Supplies 13,863Gasoline 161,303Tires and Tubes 38,561Vehicle Parts 105,219Other Supplies and Materials 4,980Vehicle and Equipment Insurance 113,000Other Charges 17,921Transportation Equipment 84,487
Total Transportation $ 2,747,238
Central and OtherSupervisor/Director $ 59,387Clerical Personnel 22,694Other Salaries and Wages 11,616Social Security 4,671Pensions 8,427Life Insurance 76Medical Insurance 14,069Employer Medicare 1,261Other Supplies and Materials 4,337Other Charges 2,757
Total Central and Other 129,295
Operation of Non-Instructional ServicesFood Service
Supervisor/Director $ 60,436Bonus Payments 29,334Social Security 3,503Pensions 5,898Life Insurance 1,647Medical Insurance 500,788Employer Medicare 819
Total Food Service 602,425
Community ServicesSupervisor/Director $ 34,935Secretary(ies) 96Clerical Personnel 25,671Other Salaries and Wages 333,335
(Continued)
231
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
General Purpose School Fund (Cont.)Operation of Non-Instructional Services (Cont.)
Community Services (Cont.)Social Security $ 23,600Pensions 15,203Medical Insurance 22,119Employer Medicare 5,520Travel 1,058Food Supplies 11,026Other Supplies and Materials 13,922Other Charges 7,986
Total Community Services $ 494,471
Early Childhood EducationTeachers $ 126,049Educational Assistants 40,558Social Security 9,946Pensions 15,770Medical Insurance 19,488Employer Medicare 2,326Maintenance and Repair Services - Equipment 2,400Instructional Supplies and Materials 6,690Other Supplies and Materials 18,936In Service/Staff Development 3,900Regular Instruction Equipment 12,830
Total Early Childhood Education 258,893
Other Debt ServiceEducation
Debt Service Contribution to Primary Government $ 260,000Total Education 260,000
Total General Purpose School Fund $ 65,927,827
School Federal Projects FundInstruction
Regular Instruction ProgramTeachers $ 767,995Educational Assistants 77,286Other Salaries and Wages 239,028Social Security 63,031Pensions 101,174Medical Insurance 167,866Employer Medicare 15,010Instructional Supplies and Materials 43,310Other Charges 707
Total Regular Instruction Program $ 1,475,407
(Continued)
232
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
School Federal Projects Fund (Cont.)Instruction (Cont.)
Special Education ProgramTeachers $ 95,443Educational Assistants 762,158Speech Pathologist 23,802Certified Substitute Teachers 10,910Social Security 48,273Pensions 79,779Medical Insurance 322,141Employer Medicare 11,290Instructional Supplies and Materials 50,629Special Education Equipment 152,893
Total Special Education Program $ 1,557,318
Career and Technical Education ProgramOther Salaries and Wages $ 32,505Social Security 1,830Pensions 3,400Medical Insurance 5,419Employer Medicare 428Instructional Supplies and Materials 2,688Other Supplies and Materials 6,187Other Charges 2,800Vocational Instruction Equipment 56,537
Total Career and Technical Education Program 111,794
Support ServicesOther Student Support
Guidance Personnel $ 51,371Social Security 2,991Pensions 5,376Medical Insurance 10,562Employer Medicare 700Travel 8,546Other Supplies and Materials 15,547In Service/Staff Development 9,163Other Charges 3,200
Total Other Student Support 107,456
Regular Instruction ProgramSupervisor/Director $ 79,357Clerical Personnel 34,944Other Salaries and Wages 248,771In-service Training 10,950Social Security 16,824Pensions 29,787Medical Insurance 43,391Employer Medicare 5,027
(Continued)
233
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
School Federal Projects Fund (Cont.)Support Services (Cont.)
Regular Instruction Program (Cont.)Travel $ 2,097Other Supplies and Materials 21,552In Service/Staff Development 47,047
Total Regular Instruction Program $ 539,747
Special Education ProgramIn-service Training $ 1,436Social Security 89Pensions 139Employer Medicare 21Travel 388Other Supplies and Materials 15,660In Service/Staff Development 73,965
Total Special Education Program 91,698
TechnologyIn Service/Staff Development $ 6,921
Total Technology 6,921
TransportationBus Drivers $ 241,417Social Security 13,686Pensions 23,414Medical Insurance 68,469Employer Medicare 3,201Other Charges 32
Total Transportation 350,219
Total School Federal Projects Fund $ 4,240,560
Central Cafeteria FundOperation of Non-Instructional Services
Food ServiceCafeteria Personnel $ 1,044,355Social Security 54,762Pensions 95,325Unemployment Compensation 1,112Employer Medicare 13,258Bank Charges 336Travel 3,522Other Contracted Services 27,817Food Preparation Supplies 104,838Food Supplies 1,042,267Office Supplies 1,863Utilities 5,531USDA - Commodities 207,169
(Continued)
234
Exhibit K-8
Washington County, TennesseeSchedule of Detailed Expenditures -
All Governmental Fund TypesDiscretely Presented Washington County School Department (Cont.)
Central Cafeteria Fund (Cont.)Operation of Non-Instructional Services (Cont.)
Food Service (Cont.)Other Supplies and Materials $ 53,316In Service/Staff Development 430Food Service Equipment 3,469
Total Food Service $ 2,659,370
Total Central Cafeteria Fund $ 2,659,370
Total Governmental Funds - Washington County School Department $ 72,827,757
235
Exhibit K-9
Washington County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balances - City Agency FundsFor the Year Ended June 30, 2019
City Cities - School
Sales Tax ADA -Fund Johnson City Total
Cash ReceiptsCurrent Property Taxes $ 0 $ 11,570,417 $ 11,570,417Trustee's Collections - Prior Years 0 316,643 316,643Trustee's Collections - Bankruptcy 0 6,891 6,891Circuit/Clerk and Master Collections - Prior Years 0 99,443 99,443Interest and Penalty 0 78,137 78,137Payment in Lieu-of Taxes - Local Utilities 0 186,571 186,571Payment in Lieu-of Taxes - Other 0 14,004 14,004Business Tax 0 333,607 333,607Mixed Drink Tax 0 1,062 1,062Bank Excise Tax 0 31,784 31,784Cities - Local Option Sales Tax 25,934,604 14,157,537 40,092,141Marriage Licenses 0 1,559 1,559Other Local Revenues 0 705 705
Total Cash Receipts $ 25,934,604 $ 26,798,360 $ 52,732,964
Cash DisbursementsRemittance of Revenues Collected $ 25,676,461 $ 26,478,162 $ 52,154,623Trustee's Commission 259,346 393,295 652,641
Total Cash Disbursements $ 25,935,807 $ 26,871,457 $ 52,807,264
Excess of Cash Receipts Over (Under)Cash Disbursements $ (1,203) $ (73,097) $ (74,300)
Cash Balance, July 1, 2018 5,416 1,579,149 1,584,565
Cash Balance, June 30, 2019 $ 4,213 $ 1,506,052 $ 1,510,265
236
STATISTICAL SECTION
This part of Washington County’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.
Tables Pages
Financial Trends:
These schedules contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time. 1-4 238-243
Revenue Capacity:
These schedules contain information to help the reader assess the government’s most significant local revenue source, the property tax. 5-8 244-247
Debt Capacity:
These schedules present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. 9-12 248-251
Demographic and Economic Information:
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. 13-14 252-253
Operating Information:
These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs. 15-17 254-256
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.
237
Table 1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Governmental ActivitiesNet Investment in Capital Assets $ 54,620,038 $ 54,382,423 $ 50,759,715 $ 49,387,797 $ 43,818,988 $ 43,270,484 $ 42,999,537 $ 42,630,018 $ 53,819,927 $ 69,266,986 Restricted 279,334 185,073 192,689 11,549,974 17,522,004 16,014,780 12,425,244 22,703,934 19,447,922 13,136,355 Unrestricted (112,293,538) (109,985,528) (103,208,230) (112,175,793) (116,550,871) (112,761,421) (106,954,062) (119,407,127) (113,892,521) (110,067,350)
Total Governmental Activities Net Position $ (57,394,166) $ (55,418,032) $ (52,255,826) $ (51,238,022) $ (55,209,879) $ (53,476,157) $ (51,529,281) $ (54,073,175) $ (40,624,672) $ (27,664,009)
WASHINGTON COUNTY, TENNESSEENET POSITION BY COMPONENT (UNAUDITED)
Last Ten Fiscal Years(Accrual Basis of Accounting)
Fiscal Year
238
Table 2
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019EXPENSESGovernmental Activities
General Government $24,764,315 $7,163,500 $5,722,284 $7,269,625 $6,366,834 $6,916,544 $7,425,277 $9,104,898 $6,210,554 $7,963,052Finance - 2,544,864 2,580,133 2,603,951 2,564,200 2,369,480 2,280,587 2,922,688 2,624,752 2,949,719 *Administration of Justice - 3,497,335 3,621,848 3,826,432 3,803,354 3,744,198 3,989,948 4,505,184 4,559,547 4,334,215 *
Public Safety 11,182,742 17,363,717 18,033,226 17,537,321 18,596,830 18,566,191 17,891,640 20,864,781 20,594,583 21,257,958 Highways 8,482,146 8,273,843 9,473,714 7,544,044 8,784,888 8,377,451 8,356,281 8,557,588 8,719,597 8,384,896 Library 491,958 - - - - - - - - - **
Social, Cultural and Recreational - 983,279 935,650 870,939 893,752 1,354,837 864,139 1,303,591 967,744 1,132,166 *Public Health and Welfare 1,598,683 5,390,784 5,541,574 5,286,431 5,397,355 5,037,422 5,061,973 5,421,337 6,324,577 6,122,851 Agricultural and Natural Resources - 384,050 403,045 438,009 421,188 372,411 404,461 441,294 489,132 506,131 *Education - 270,000 66,761 161,881 4,849,517 2,370,917 2,367,238 12,840,299 1,308,810 1,641,824 *Interest on Long-Term Debt 8,071,516 7,402,705 6,729,327 6,606,429 6,901,927 6,222,995 6,080,922 5,285,691 5,001,768 5,338,159
Total Governmental Activities Expenses 54,591,360$ 53,274,077$ 53,107,562$ 52,145,062$ 58,579,845$ 55,332,446$ 54,722,466$ 71,247,351$ 56,801,064$ 59,630,971$
PROGRAM REVENUESGovernmental Activities
Charges for ServicesGeneral Government $4,734,732 $1,010,812 $848,133 $700,183 $619,370 $782,033 $859,297 $1,960,650 $2,077,420 $2,042,945Finance - 1,825,386 1,861,108 1,877,106 1,897,081 1,967,215 2,116,550 3,240,276 3,489,321 3,623,211 Administration of Justice - 2,034,347 2,083,877 1,917,838 2,136,900 2,108,387 2,134,107 2,892,185 2,876,661 2,987,369 *
Public Safety 2,787,148 3,184,023 3,383,614 3,232,248 4,090,509 3,876,258 4,141,148 2,152,933 2,451,219 2,111,726 Highways 836,028 448,373 731,490 318,552 521,231 190,689 328,971 698,703 357,099 132,239 Library 22,770 - - - - - - - - - **
Social, Cultural and Recreational - 8,375 242,239 256,477 264,290 264,588 271,681 22,249 22,285 20,787 *Public Health and Welfare 415,749 420,630 426,175 329,242 300,883 298,072 291,802 345,082 293,251 297,976
Operating Grants and ContributionsGeneral Government 1,249,185 263,400 256,892 238,790 230,340 148,791 161,250 57,614 69,564 17,204
Administration of Justice - 36,164 35,164 30,373 33,659 34,164 27,574 68,840 100,410 66,985 * Public Safety 309,173 189,515 200,836 269,205 310,950 399,183 131,933 2,040,420 1,479,745 1,582,906 Highways 2,880,346 2,331,909 2,926,714 2,311,518 2,325,875 2,379,014 2,480,323 2,520,019 3,029,763 3,216,326 Library 30,408 - - - - - - - - - **
Social, Cultural and Recreational - 113,432 - 6,976 19,172 1,154 - 1,299 16,331 16,500 * Agriculture and Natural Resources - - - - - - - - 17,500 17,500 Interest on Long-term Debt - - - - - - - 260,000 260,000 260,000 Public Health and Welfare 164,564 1,157,535 1,165,292 1,044,139 994,092 1,015,523 831,479 887,332 961,809 1,101,428
Capital Grants and ContributionsGeneral Government 1,464,807 904,614 529,243 172,115 210,908 109,847 147,555 186,422 524,428 -
Administration of Justice - 36,164 35,164 30,373 33,659 34,164 27,574 68,840 10,089 Public Safety 108,100 10,559 14,720 708,641 16,054 784,994 70,139 27,455 194,578 164,059 Highways 939,857 780,480 261,312 - 1,097 284,999 257,680 - 707,106 1,144,750 Library - - - - - - - - - - **
Social, Cultural and Recreational - 21,407 25,345 - - - - 324,782 - 973 *Public Health and Welfare 27,806 - 3,087 70,000 17,090 - - 39,970 478,075
Total Governmental Activities Program Revenues $15,970,673 $14,777,125 $15,030,405 $13,513,776 $14,023,160 $14,679,075 $14,279,063 $17,795,071 $19,406,565 $18,814,973
* Prior year's information is not readily available. ** Library Fund is now considered a department of the General Fund due to GASB 54 implementation. (Continued)
WASHINGTON COUNTY, TENNESSEECHANGES IN NET POSITION (UNAUDITED)
Last Ten Fiscal Years(Accrual Basis of Accounting)
Fiscal Year
239
Table 2
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019NET (EXPENSE)/REVENUETotal Governmental Activities Net Expense ($38,620,687) ($38,533,116) ($38,112,321) ($38,661,659) ($44,590,344) ($40,687,535) ($40,470,977) ($53,521,120) ($37,394,499) ($40,815,998)
GENERAL REVENUES AND OTHER CHANGES IN NET POSITIONGovernmental Activities
TaxesProperty Taxes $36,632,359 $36,542,054 $36,478,953 $35,809,724 $35,566,742 $36,224,789 $36,150,344 $46,042,196 $47,311,779 $47,865,385Business Taxes 1,049,064 1,077,522 1,100,085 1,011,548 987,940 1,079,144 1,136,463 1,295,552 1,385,699 1,333,906 Miscellaneous 2,248,266 1,786,512 1,861,929 1,879,540 2,032,951 2,477,345 2,466,548 1,406,368 1,291,487 1,392,346
Other Local Governments 1,459,939 1,658,603 1,647,866 1,917,163 1,735,966 1,670,665 1,802,251 - - - ***State Aid 668,585 78,043 194,656 206,027 293,447 565,917 657,084 - - - ***Federal Aid - 7,305 - - - 403,381 - - - - Grants and Contributions - - - - - - - 2,005,623 2,339,218 2,174,470 ***Gain (Loss) on Sale and Disposal of Assets 1,491,702 (26,642) (55,616) 44,239 56,294 24,294 138,732 - - 56,518 Unrestricted Investment Earnings 234,165 85,853 46,654 52,796 55,808 57,605 66,431 80,072 215,344 712,210 Miscellaneous - - - - - - - 147,415 86,344 241,826 ***
Special ItemsDamages from Individuals - - - - - - - - - - Contribution to Component Unit/ Note Proceeds (2,712,691) - - - - - - - - - Bond Proceeds Remitted to Johnson City Schools (3,113,898) - - - - - - - - -
$37,957,491 $41,209,250 $41,274,527 $40,921,037 $40,729,148 $42,503,140 $42,417,853 $50,977,226 $52,629,871 $53,776,661
CHANGE IN NET POSITIONTotal Governmental Activities ($663,196) $2,676,134 $3,162,206 $2,259,378 ($3,861,196) $1,815,605 $1,946,876 ($2,543,894) $15,235,372 $12,960,663
*** The presentation of certain fund revenues were changed in 2017
WASHINGTON COUNTY, TENNESSEECHANGES IN NET POSITION (UNAUDITED)
Last Ten Fiscal Years(Accrual Basis of Accounting)
Fiscal Year
240
Table 3
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General FundNonspendable -$ -$ -$ -$ -$ -$ -$ -$ -$ 20,229$ Restricted - 185,073 192,689 246,894 381,934 336,034 392,312 310,411 410,391 571,924 Committed - 1,074,741 1,521,594 1,624,729 1,625,590 2,010,134 1,616,241 - - - Assigned - 320,672 252,626 242,764 284,829 355,039 231,757 2,029,616 1,864,749 2,132,262 Unassigned - 12,816,210 15,988,550 16,450,146 17,318,952 14,849,884 14,130,256 14,309,037 15,562,557 14,574,988 Reserved 595,895 - - - - - - - - - Unreserved 13,422,536 - - - - - - - - -
Total General Fund 14,018,431$ 14,396,696$ 17,955,459$ 18,564,533$ 19,611,305$ 17,551,091$ 16,370,566$ 16,649,064$ 17,837,697$ 17,299,403$
All Other Governmental FundsNonspendable
Debt Service -$ -$ -$ -$ -$ -$ 716,000$ -$ -$ -$ Restricted
Highways - - - 4,700,309 5,325,614 5,180,307 4,362,048 - 1,142,531 1,487,660 Debt Service - - - 6,405,525 7,470,558 7,342,205 6,133,622 7,472,633 5,844,967 6,862,845 Public Safety - - - 197,246 206,921 228,545 243,194 260,306 319,554 373,719 Education - - - - - - - 8,933,057 7,610,697 - Capital Projects - - - - - - - 19,326,934 13,905,875 9,245,998
CommitedHighway Fund - 8,111 8,111 - - - - 4,256,253 4,627,319 5,137,493 Public Health and Welfare - 894,381 1,093,416 1,250,141 1,228,278 1,215,443 987,653 743,547 434,092 361,030 Capital Projects - - - 1,730,406 4,136,977 - 1,544,648 - - -
AssignedHighways - 4,192,970 4,653,928 - - - - - - - Public Safety - 377,406 254,721 - - - - - - - Debt Service - 4,544,205 5,077,558 - - - - - - - Capital Projects - 548,333 480,963 255,284 - 2,927,689 1,294,068 - - -
Reserved 95,228 - - - - - - - - - Unreserved
Highway Fund 3,828,397 - - - - - - - - - Debt Service Fund 7,219,431 - - - - - - - - - Capital Projects 569,028 - - - - - (740,077) - - - Special Revenue Funds 1,230,406 - - - - - - - - -
Total All Other Governmental Funds 12,942,490$ 10,565,406$ 11,568,697$ 14,538,911$ 18,368,348$ 16,894,189$ 14,541,156$ 40,992,730$ 33,885,035$ 23,468,745$
NOTE: The County implemented Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions ,during the 2011 fiscal year. These changes were not retrospectively applied.
(Modified Accrual Basis of Accounting)Last Ten Fiscal Years
FUND BALANCES, GOVERNMENTAL FUNDS (UNAUDITED)WASHINGTON COUNTY, TENNESSEE
Fiscal Year
241
Table 4
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019REVENUES
Taxes 39,058,665$ 38,821,164$ 39,039,964$ 38,254,578$ 37,846,018$ 38,499,876$ 38,850,710$ 50,561,120$ 50,614,402$ 51,200,097$ Licenses and Permits 468,330 470,975 495,487 552,117 569,907 579,239 618,064 685,941 709,293 711,579 Fines, Forfeitures and Penalties 881,800 959,209 973,459 1,049,380 942,459 966,951 1,020,892 691,817 649,459 584,227 Charges for Current Services 1,816,447 970,763 1,549,971 927,575 938,606 847,433 995,603 791,034 769,831 773,561 Other Local Revenues 1,176,250 1,007,532 824,914 862,523 851,021 790,851 972,749 793,014 962,304 1,342,919 Fees Received from County Officials 5,018,522 5,203,354 5,238,654 5,220,078 5,357,541 5,406,599 5,654,440 6,045,846 6,421,792 6,655,364 Revenue from State of Tennessee 6,979,130 5,715,264 6,709,323 5,886,507 6,599,275 7,657,738 6,735,772 6,028,324 9,252,001 8,721,688 Revenue from Federal Government 1,547,527 1,127,712 1,133,676 1,201,492 470,657 341,972 303,869 171,753 2,249,339 1,583,742 Revenue from Other Governments and Citizens Groups 1,423,059 1,629,185 2,530,894 1,446,146 1,948,066 1,745,770 2,513,696 2,500,331 804,423 635,210
Total Revenues 58,369,730$ 55,905,158$ 58,496,342$ 55,400,396$ 55,523,550$ 56,836,429$ 57,665,795$ 68,269,180$ 72,432,844$ 72,208,387$
EXPENDITURESGeneral Government 22,547,326$ 5,110,016$ 4,928,959$ 5,541,254$ 6,298,439$ 5,612,354$ 5,221,002$ 5,547,677$ 5,492,641$ 4,977,932$ Finance - 2,544,864 2,573,410 2,600,650 2,560,244 2,548,805 2,454,224 2,624,617 2,767,012 3,024,853 Administration of Justice - 3,498,568 3,545,146 3,786,673 3,842,678 3,904,067 4,146,682 4,245,712 4,589,459 4,468,299 Public Safety 10,782,561 16,606,647 17,058,392 16,579,592 17,414,401 17,890,607 17,636,191 18,707,023 19,296,038 20,600,821 Highways 7,110,143 7,063,859 8,054,024 7,272,037 8,912,894 7,665,764 8,273,057 7,683,480 7,772,741 8,991,236 Library 472,346 - - - - - - - - Public Health and Welfare 1,552,341 5,311,156 5,579,371 5,312,417 5,375,408 5,139,684 5,153,849 5,161,713 5,355,305 5,605,517 Social, Cultural and Recreational - 957,385 876,769 869,803 839,846 1,317,274 825,957 946,232 888,678 1,021,334 Agriculture and Natural Resources - 384,050 397,948 435,305 417,339 400,909 436,966 432,196 488,555 507,471 Other Operations - 1,314,448 875,695 1,606,024 747,336 1,717,722 2,427,087 871,728 866,134 1,415,171 Debt Service:
Principal 7,000,400 17,201,767 2,875,000 2,410,000 2,930,000 4,790,000 5,335,000 5,861,966 6,634,383 6,755,000 Interest and Fiscal Fees 8,207,459 7,712,186 6,900,560 6,878,304 6,697,412 6,809,881 6,648,993 4,694,417 6,115,207 6,018,180 Trustee's Commission 242,329 378,786 202,253 208,642 200,037 202,818 201,628 - - - Other Charges - - - - 8,232,385 - 8,317 954,408 211,991 272,093
Education - 270,000 66,761 161,881 4,030,270 2,370,917 2,430,400 1,259,751 1,229,368 727,588 Capital Outlay 4,796,873 - - - - - - 17,711,225 16,704,128 18,798,977
Total Expenditures 62,711,778$ 68,353,732$ 53,934,288$ 53,662,582$ 68,498,689$ 60,370,802$ 61,199,353$ 76,702,145$ 78,411,640$ 83,184,472$
Fiscal Year
WASHINGTON COUNTY, TENNESSEECHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (UNAUDITED)
Last Ten Fiscal Years(Modified Accrual Basis of Accounting)
242
Table 4
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Fiscal Year
WASHINGTON COUNTY, TENNESSEECHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (UNAUDITED)
Last Ten Fiscal Years(Modified Accrual Basis of Accounting)
Excess (Deficiency) of RevenuesOver Expenditures (4,342,048)$ (12,448,574)$ 4,562,054$ 1,737,814$ (12,975,139)$ (3,534,373)$ (3,533,558)$ (8,432,965)$ (5,978,796)$ (10,976,085)$
OTHER FINANCING SOURCES (USES)Bond Proceeds -$ -$ -$ 1,760,000$ 4,015,000$ -$ -$ 31,950,000$ -$ -$ Note Proceeds 5,196,100 270,000 - - 5,520,000 - - - - - Capital Lease Proceeds - - - - 673,166 - - - - - Refunding Bond Issued - 9,765,000 - - 7,785,000 - - 120,510,000 - - Premium on Bonds Issued - 414,755 - 81,474 788,090 - - 17,682,616 - - Payment to Refund Bond Escrow Agent - - - - - - - (134,396,558) - - Contribution to Johnson City Schools (3,113,898) - - - (819,247) - - - - - Contribution to the Component Unit - WCSB (2,712,691) - - - - - - - - - Insurance Recovery - - - - - - - 59,624 59,734 21,501 Transfers to Other Funds (5,705,954) (5,267,579) (5,302,920) (5,362,576) (7,804,005) (6,789,278) (8,304,848) (958,798) (311,981) (188,347) Transfers from Other Funds 5,705,954 5,267,579 5,302,920 5,362,576 7,804,005 6,789,278 8,304,848 316,153 311,981 188,347
Total Other Financing Sources (Uses) (630,489)$ 10,449,755$ -$ 1,841,474$ 17,962,009$ -$ -$ 35,163,037$ 59,734$ 21,501$
Net Change in Fund Balances (4,972,537)$ (1,998,819)$ 4,562,054$ 3,579,288$ 4,986,870$ (3,534,373)$ (3,533,558)$ 26,730,072$ (5,919,062)$ (10,954,584)$
Debt Service as a Percentage ofNoncapital Expenditures 26.68% 37.42% 18.82% 18.27% 28.94% 20.38% 21.21% 16.24% 21.26% 20.49%
Capital Expenditures 4,796,873$ 770,430$ 919,542$ 1,667,618$ 6,092,165$ 2,444,091$ 3,711,391$ 5,807,547$ 17,445,843$ 19,526,565$
* Library Fund is now considered a department of the General Fund due to GASB 54 implementation. ** During fiscal years 2011-2016, capital outlay was reported in the area for which it was expended.
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WASHINGTON COUNTY, TENNESSEEASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY (UNAUDITED)
Last Ten Fiscal Years
Table 5
Ratio of Total
Fiscal Year Direct Industrial & Assessed ValueEnded Tax Tax Residential & Commercial To Total Estimated
June 30 Year Rate Farm Property Property Assessed Estimated Assessed Estimated Assessed Estimated Assessed Actual Value
2010 2009 $1.91 $7,429,047,800 $2,130,873,200 $2,699,514,396 $518,161,803 $155,448,541 $179,889,118 $79,514,718 $10,257,971,921 $2,934,477,655 28.61%2011 2010 1.91 7,504,941,300 2,099,396,600 2,714,899,938 503,425,100 151,027,530 185,327,675 80,895,530 10,293,090,675 2,946,822,998 28.63%2012 2011 1.91 7,540,552,600 2,123,261,300 2,726,143,300 440,761,160 132,228,348 182,833,517 79,806,830 10,287,408,577 2,938,178,478 28.56%2013 2012 1.91 7,587,863,700 2,136,391,800 2,751,522,645 466,930,700 140,082,967 183,118,117 79,931,058 10,374,304,317 2,971,536,670 28.64%2014 2013 1.91 7,646,315,900 2,133,073,500 2,764,808,375 480,097,327 144,033,330 180,106,144 78,616,332 10,439,592,871 2,987,458,037 28.62%2015 2014 1.98 7,324,231,300 2,164,747,300 2,696,956,745 484,019,595 145,210,621 177,226,213 77,359,242 10,150,224,408 2,919,526,608 28.76%2016 2015 1.98 7,395,751,800 2,187,785,400 2,724,052,110 511,930,203 153,584,251 176,768,458 77,159,432 10,272,235,861 2,954,795,793 28.76%2017 2016 2.38 7,652,825,887 2,292,132,394 2,759,307,990 568,747,797 167,254,286 180,733,095 78,889,996 10,694,439,173 3,005,452,272 28.10%2018 2017 2.38 7,478,659,900 2,322,236,600 2,798,559,615 547,813,572 161,162,136 131,404,713 72,272,592 10,480,114,785 3,031,994,343 28.93%2019 2018 2.38 7,591,898,100 2,335,781,100 2,832,286,965 535,518,282 152,706,327 127,812,460 70,296,853 10,591,009,942 3,055,290,145 28.85%
Source: Tennessee Comptroller of the Treasury Division of Property Assessments
Personal Property Public Utility Property Total
Real PropertyEstimated
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Table 6
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
County Direct RatesGeneral $0.65 $0.65 $0.71 $0.65 $0.65 $0.68 $0.68 $0.73 $0.74 $0.74Upkeep (Highway) 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.16 0.16General Purpose School 0.68 0.68 0.69 0.74 0.77 0.80 0.80 0.83 0.83 0.83Debt Service 0.39 0.39 0.32 0.33 0.31 0.32 0.32 0.32 0.32 0.41Solid Waste/Sanitation 0.04 0.04 0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.03Capital Projects 0 0 0 0 0 0 0 0.32 0.31 0.21
Total Direct Rate $1.91 $1.91 $1.91 $1.91 $1.91 $1.98 $1.98 $2.38 $2.38 $2.38
City RatesCity of Johnson City $1.54 $1.54 $1.57 $1.57 $1.58 $1.62 $1.87 $1.89 $1.89 $1.89
Town RatesTown of Jonesborough $1.18 $1.18 $1.28 $1.28 $1.28 $1.31 $1.31 $1.31 $1.31 $1.31
Fiscal Year
WASHINGTON COUNTY, TENNESSEEDIRECT AND OVERLAPPING PROPERTY TAX RATES (UNAUDITED)
Last Ten Fiscal Years(Rate per $100 of Assessed Value)
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Table 7
Percentage of Percentage ofTaxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed AssessedTaxpayer Valuation Rank Value Valuation Rank Value
Glimcher, MJC, LLC 20,630,960$ 1 0.68% -$ -
Wal-Mart / Sam's Club 19,129,380 2 0.63% 20,753,875 3 0.71%
Mountain States Properties 14,578,655 3 0.48%
Atmos Energy Corporation 14,233,731 4 0.47% 10,628,513 6 0.36%
Wolfe Rentals GP / Wolfe Development 11,449,370 5 0.37% - -
The Haven at Knob Creek, LLC 10,402,400 6 0.34% 10,769,409 5 0.37%
American Water Heater 10,268,800 7 0.34% 12,258,533 4 0.42%
Sprint / United Telephone Southeast, LLC 9,544,726 8 0.31% 24,609,625 1 0.84%
MMAC 150 Johnson City, LLC 8,894,400 9 0.29% - -
RAF Johnson City LLC / Johnson City United LP (K-Mart Corp & Sears Robuck Company) 8,799,840 10 0.29% - -
Johnson City Venture - - 24,609,625 2 0.84%
Johnson City Crossing - - 8,682,560 7 0.30%
SOFHA Real Estate Partners, LLC - - 7,023,250 8 0.24%
Bank of Tennessee - - 5,312,989 9 0.18%
Johnson City United, LP - - 5,203,576 10 0.18%
127,932,262$ 4.19% 129,851,955$ 4.43%
2010
WASHINGTON COUNTY, TENNESSEEPRINCIPAL PROPERTY TAXPAYERS (UNAUDITED)
CURRENT YEAR AND NINE YEARS AGO
2019
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Table 8Collected Within the
Fiscal Year Total Tax Subsequent Fiscal Year of the Levy Collections in Ended Levy for Tax Levy Adjusted Tax Percentage of Subsequent Percentage of
June 30 Fiscal Year Adjustments Levy Amount Original Levy Years Amount Adjusted Levy
2010 56,356,490$ (167,999)$ 56,188,491$ 52,982,502$ 94.0% 2,146,144$ 55,128,646$ 98.1%2011 56,420,417 44,041 56,464,458 53,129,359 94.2% 2,189,920 55,319,279 98.0%2012 56,392,758 34,667 56,427,425 53,167,530 94.3% 2,277,564 55,445,094 98.3%2013 56,859,917 92,771 56,952,688 53,756,290 94.5% 2,205,513 55,961,803 98.3%2014 57,178,382 82,443 57,260,825 54,283,260 94.9% 2,194,521 56,477,781 98.6%2015 57,800,792 95,427 57,896,219 55,149,235 95.4% 2,004,864 57,154,099 98.7%2016 58,640,267 102,168 58,742,435 55,944,552 95.4% 2,150,666 58,095,218 98.9%2017 71,523,756 (85,851) 71,437,905 69,122,805 96.6% 2,139,394 71,262,199 99.8%2018 72,155,872 (60,151) 72,095,721 70,595,653 97.8% 2,542,196 73,137,849 101.4%2019 72,709,799 (4,954) 72,704,845 71,080,990 97.8% - 71,080,990 97.8%
WASHINGTON COUNTY, TENNESSEEPROPERTY TAX LEVIES AND COLLECTIONS (UNAUDITED)
Last Ten Fiscal Years
Total Collections to Date
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WASHINGTON COUNTY, TENNESSEERATIOS OF OUTSTANDING DEBT BY TYPE (UNAUDITED)
Last Ten Fiscal Years
Table 9
General Capital Non Exchange Percentage of Fiscal Obligation Outlay Financial Capital Personal PerYear Bonds Notes Guarantee Leases Total Income1 Capita1
2010 152,032,448$ 12,091,766$ -$ 1,233$ 164,125,447$ 3.91% 1,330.29$ 2011 156,806,399 270,000 - - 157,076,399 3.50% 1,268.16 2012 153,690,545 180,000 - - 153,870,545 3.30% 1,233.18 2013 152,870,302 90,000 - - 152,960,302 3.28% 1,220.08 2014 154,439,718 5,520,000 - 554,117 160,513,835 3.36% 1,276.42 2015 149,757,363 4,930,000 - 422,051 155,109,414 3.09% 1,229.89 2016 144,535,008 4,335,000 - 287,655 149,157,663 2.90% 1,172.75 2017 185,321,707 3,730,000 - 139,383 189,191,090 3.57% 1,482.54 2018 177,823,087 3,125,000 - - 180,948,087 3.25% 1,406.98 2019 170,104,489 2,560,000 1,408,878 - 174,073,367 3.10% 1,338.25
1 Population and personal income data can be found in Table 13.
Note: Details regarding the county's outstanding debt can be found in the notes to the financial statements.
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WASHINGTON COUNTY, TENNESSEERATIOS OF GENERAL BONDED DEBT OUTSTANDING (UNAUDITED)
Last Ten Fiscal Years
Table 10Less Amounts Percentage of
General Available in Percentage of Assessed Value3
Fiscal Obligation Debt Service Personal of Taxable PerYear Bonds Fund1 Total Income2 Propery Capita2
2010 $152,032,448 $7,219,431 $144,813,017 3.45% 4.93% 1,173.75$ 2011 156,806,399 4,544,205 152,262,194 3.39% 5.17% 1,229.29 2012 153,690,545 5,077,558 148,612,987 3.18% 5.06% 1,191.05 2013 152,870,302 6,405,525 146,464,777 3.14% 4.93% 1,168.27 2014 154,439,718 7,470,558 146,969,160 3.08% 4.92% 1,168.71 2015 149,757,363 7,342,205 142,415,158 2.84% 4.88% 1,129.24 2016 144,535,008 6,133,622 138,401,386 2.69% 4.68% 1,088.18 2017 185,321,707 7,472,633 177,849,074 3.36% 5.92% 1,393.66 2018 177,823,087 5,597,903 172,225,184 3.09% 5.68% 1,339.16 2019 170,104,489 6,613,212 163,491,277 2.91% 5.35% 1,256.90
2 Population and personal income data can be found in Table 13.3 See Table 5 for property value data.
Note: Details regarding the county's outstanding debt can be found in the notes to the financial statements.
1 Funds available in Debt Service reflect government wide adjustments for the effect of deferred revenues for delinquent taxes and the effect of accrued interest on debt on restricted fund balance for Debt Service.
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Table 11
Estimated Estimated ShareDebt Percentage Of Overlapping
Outstanding Applicable Debt
Debt Repaid with Property Taxes:
Overlapping Debt:City of Johnson City 119,165,741$ 98.00% 116,782,426$ Town of Jonesborough 5,065,000 100.00% 5,065,000 City of Watauga - 0.01% -
Subtotal, Overlapping Debt 124,230,741$ 121,847,426$
Net Direct Debt:Washington County 174,073,367 100.00% 174,073,367
Total Direct and Overlapping Debt 298,304,108$ 295,920,793$
Source: Washington County Finance Department and City and Town Governments
WASHINGTON COUNTY, TENNESSEEDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2019
Governmental Unit
Note: Overlapping governments are those that coincide, at least in part, with the geographicboundaries of the county. This schedule estimates the portion of the outstanding debt of thoseoverlapping governments that is borne by the residents and businesses of Washington County,Tennessee. This process recognizes that, when considering the government's ability to issue and repaylong-term debt, the entire debt burden borne by the residents and businesses should be taken intoaccount. However, this does not imply that every taxpayer is a resident, and therefore responsible forrepaying the debt, of each overlapping government.
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Table 12
WASHINGTON COUNTY, TENNESSEELEGAL DEBT MARGIN INFORMATION (UNAUDITED)
June 30, 2018
The State of Tennessee has not placed any restrictions on the amount of debt that may be issued by Washington County, Tennessee.
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Table 13Per Capita
Fiscal Personal Personal UnemploymentYear Population Income Income Rate
2010 123,376 $4,199,442,000 $34,038 8.7%2011 123,862 4,492,578,000 36,271 9.0%2012 124,775 4,668,979,000 37,419 7.5%2013 125,369 4,659,614,000 37,167 8.1%2014 125,753 4,775,639,000 37,976 7.3%2015 126,116 5,017,173,000 39,782 6.4%2016 127,186 5,139,873,000 40,412 5.7%2017 127,613 5,300,888,000 41,539 4.9%2018 128,607 5,568,591,000 43,299 4.3%2019 130,075 5,617,418,950 43,186 4.2%
Source: United States Census Bureau and Tennessee Department of Labor & WorkforceDevelopment
WASHINGTON COUNTY, TENNESSEEDEMOGRAPHIC AND ECONOMIC STATISTICS (UNAUDITED)
Last Ten Fiscal Years
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Table 14
Percentage Percentage of Total County of Total County
EMPLOYER Employees Rank Employment Employees Rank Employment
Ballad Health 14,989 1 16.82% 3,541 1 6.34%
James H. Quillen VA Medical Center 2,500 2 2.81% 1,592 4 2.85%
East Tennessee State University 2,469 3 2.77% 2,330 2 4.17%
Citi Group 1,896 4 2.13% 1,950 3 3.49%
Advanced Call Center Technologies 1,650 5 1.85% 1,400 5 2.51%
Washington County Schools 1,338 6 1.50% 1,200 6 2.15%
Frontier Health 1,100 7 1.23% - -
AO Smith Water Products Company 1,024 8 1.15% 1,170 7 2.10%
Johnson City Schools 1,077 9 1.21% 832 9 1.49%
City of Johnson City 939 10 1.05% 853 8 1.53%
AT & T Wireless - - 650 10 1.16%
28,982 32.52% 15,518 27.81%
Note: The total county employment used for 2010 is based on the June 2010 labor force estimates from the Tennessee Department of Labor and Workforce Development.
Source: Business Journal Book of Lists|October 2019.
2019 2010
WASHINGTON COUNTY, TENNESSEEPRINCIPAL EMPLOYERS (UNAUDITED)
For the Fiscal Years Noted
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Table 15
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019FUNCTION
General Government 143 155 155 146 146 140 140 142 146 141Public Safety 203 211 211 215 220 217 224 225 225 209Highways 91 82 83 83 83 82 83 82 80 83Library 12 9 9 13 9 8 9 12 9 9Sanitation 14 14 14 13 13 14 14 14 17 17
Total 463 471 472 470 471 461 470 475 477 459
Source: Washington County Payroll Records
Full-time Equivalent Employees as of June 30
WASHINGTON COUNTY, TENNESSEEFULL-TIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTION (UNAUDITED)
Last Ten Fiscal Years
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Table 16
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function/Program
Sheriff's DepartmentJail Bookings 8,736 8,919 7,642 7,095 7,146 6,939 7,181 7,350 8,077 8,064 Average Daily Population 510 562 616 589 581 554 594 590 653 691 Physical Arrests 3,740 3,920 3,958 3,845 3,553 3,587 3,725 3,926 4,545 4,509 Warrants Processed 17,676 15,888 16,477 15,825 15,886 15,768 15,501 15,825 16,811 16,896 Warrants Served 13,234 12,199 12,118 13,138 11,757 11,341 11,546 11,586 12,104 12,224 Civil Papers Processed * * * * * * * * * *Civil Papers Served * * * * * * * * * *
HighwayStreets Maintained (miles) 769.82 769.82 760.71 788.96 788.96 789.96 789.96 971.41 972.39 973.22 Streets Resurfaced (miles) 32.13 34.17 21.94 31.34 36.89 31.44 36.00 32.84 25.27 30.70
LibraryVolumes in Circulation 166,009 146,255 146,255 153,895 167,468 139,918 135,558 145,546 127,546 114,147
SanitationRefuse Collected (tons/day) 57.32 54.67 51.21 54.89 35.60 37.82 45.47 44.64 44.64 42.36Recyclables Collected (tons/day) 17.25 15.34 11.23 13.47 12.92 11.78 8.55 8.79 8.79 8.6
* Comparable information was not available.
Source: Various County Departments
Fiscal Year
WASHINGTON COUNTY, TENNESSEEOPERATING INDICATORS BY FUNCTION (UNAUDITED)
Last Ten Fiscal Years
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Table 17
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function/Program
Sheriff's DepartmentCorrection Facility Capacity 578 578 578 578 578 620 620 620 620 620Stations 1 1 1 1 1 1 1 1 1 1Zones 5 5 5 5 5 5 5 5 5 5Patrol Units 36 36 36 36 36 36 39 39 39 39Substations 3 3 3 3 3 3 1 1 1 1
HighwayBridges under 20 feet 372 372 372 372 372 372 372 372 372 372 Bridges 20 feet and over 115 115 115 115 115 115 115 115 115 115
LibraryVolumes in Collection 87,467 88,856 88,474 91,753 90,617 81,529 76,730 91,292 73,421 60,186
SanitationCollection Trucks 4 4 4 4 4 4 4 4 4 4
Source: Various County Departments
Fiscal Year
WASHINGTON COUNTY, TENNESSEECAPITAL ASSET STATISTICS BY FUNCTION (UNAUDITED)
Last Ten Fiscal Years
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SINGLE AUDIT SECTION
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Report on Internal Control Over Financial Reporting and on Compliance and Other MattersBased on an Audit of Financial Statements Performed in Accordance With Government
Auditing Standards
Independent Auditor’s Report
Washington County Mayor and Board of County Commissioners Washington 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 Washington County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise Washington County's basic financial statements, as listed in the table of contents, and have issued our report thereon dated November 27, 2019. Our report includes a reference to other auditors who audited the financial statements of the Washington County Emergency Communications District as described in our report on Washington County's financial statements. This report does not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Washington 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 Washington County's internal control. Accordingly, we do not express an opinion on the effectiveness of Washington County's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
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Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. 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: 2019-001, 2019-002(B), 2019-003, 2019-004, and 2019-006.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Washington 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: 2019-002(A) and 2019-005.
Washington County's Responses to the Findings
Washington County's responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. Washington 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 results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Washington 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
November 27, 2019
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Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal
Awards Required by the Uniform Guidance
Independent Auditor’s Report
Washington County Mayor and Board of County Commissioners Washington County, Tennessee
To the County Mayor and Board of County Commissioners:
Report on Compliance for Each Major Federal Program
We have audited Washington 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 Washington County's major federal programs for the year ended June 30, 2019. Washington County's major federal programs are identified in the summary of auditor's results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with the federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Washington County's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes
260
examining, on a test basis, evidence about Washington 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 Washington County's compliance.
Opinion on Each Major Federal Program
In our opinion, Washington County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019.
Report on Internal Control Over Compliance
Management of Washington 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 Washington 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 Washington County's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the
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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 Washington County, Tennessee, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise Washington County’s basic financial statements. We issued our report thereon dated November 27, 2019, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Very truly yours,
Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee
November 27, 2019
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Washington County, Tennessee, and the Washington County School DepartmentSchedule of Expenditures of Federal Awards and State Grants (1) (2)For the Year-Ended June 30, 2019
Federal Pass-throughFederal/Pass-Through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures
U.S. Department of Agriculture: Direct Program: Forest Service Schools and Roads Cluster: (4) Schools and Roads - Grants to States 10.665 N/A $ 15,791 Passed-through State Department of Education: Child Nutrition Cluster: (4) School Breakfast Program 10.553 N/A 443,660 National School Lunch Program 10.555 N/A 1,459,517 (9) Passed-through State Department of Agriculture: Child Nutrition Cluster: (4) National School Lunch Program (Commodities - Noncash Assistance) 10.555 N/A 207,169 (9) Passed-through State Department of Health: Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 GG-19-59271-00 148,002 (8)Total U.S. Department of Agriculture $ 2,274,139
U.S. Department of Military: Passed-through State Department of General Services: Section 1033 Excess Property Program (Noncash Assistance) 12.U01 N/A $ 5,448 (5)Total U.S. Department of Military $ 5,448
U.S. Department of Interior: Direct Program: Payments in Lieu of Taxes 15.226 N/A $ 31,573Total U.S. Department of Interior $ 31,573
U.S. Department of Justice: Passed-through State Commission on Children and Youth: Juvenile Justice and Delinquency Prevention - Allocation to States 16.540 31601-1832 $ 7,385 Passed-through City of Johnson City: Edward Byrne Memorial Justice Assistance Grant Program 16.738 2017-DJ-BX-0750 11,086 Direct Program: Equitable Sharing Program 16.922 N/A 46,854Total U.S. Department of Justice $ 65,325
U.S. Department of Transportation: Passed-through State Department of Transportation: Alcohol Open Container Requirements 20.607 (6) $ 26,528Total U.S. Department of Transportation $ 26,528
U.S. Institute of Museum and Library Services: Passed-through State Library and Archives: Grants to States 45.310 (3) $ 973Total U.S. Institute of Museum and Library Services $ 973
U.S. Department of Education: Passed-through State Department of Human Services: Rehabilitation Services - Vocational Rehabilitation Grants to States 84.126 (3) $ 180,998 Passed-through State Department of Education: Title 1 Grants to Local Educational Agencies 84.010 N/A 1,661,597 Special Education Cluster: (4) Special Education - Grants to States 84.027 N/A 1,970,872 Special Education - Preschool Grants 84.173 N/A 46,768 Career and Technical Education - Basic Grants to States 84.048 N/A 127,208 Improving Teacher Quality State Grants 84.367 N/A 318,431 Student Support and Academic Enrichment Program 84.424 N/A 103,079 Passed-through Greeneville City School Department: English Language Acquisition Grants 84.365 N/A 3,885Total U.S. Department of Education $ 4,412,838
(Continued)
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Washington County, Tennessee, and the Washington School DepartmentSchedule of Expenditures of Federal Awards and State Grants (1) (2) (Cont.)
Federal Pass-throughFederal/Pass-Through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures
U.S. Department of Health and Human Services: Passed-through State Department of Health: Injury Prevention and Control Research and State and Community Based Programs 93.136 GG-19-59271-00 $ 18,226 (8) Family Planning Services 93.217 GG-19-59271-00 33,968 (8) National State Based Tobacco Control Programs 93.305 GG-19-59271-00 20 (8) Medicaid Cluster: (4) Medical Assistance Program 93.778 GG-19-59271-00 68,612 (8) Maternal and Child Health Services Block Grant to the States 93.994 GG-19-59271-00 44,675 (8) Passed-through State Department of Education: CCDF Cluster: (4) Child Care and Development Block Grant 93.575 N/A 47,750Total U.S. Department of Health and Human Services $ 213,251
Executive Office of the President: Passed-through Laurel County, Kentucky Fiscal Court: High Intensity Drug Trafficking Areas Program 95.001 (3) $ 6,940Total Executive Office of the President $ 6,940
U.S. Department of Homeland Security: Passed-through State Department of Military: Homeland Security Grant Program 97.067 (7) $ 152,973Total U.S. Department of Homeland Security $ 152,973
Total Expenditures of Federal Grants $ 7,189,988
ContractState Grants Number Juvenile Justice - State Commission on Children and Youth N/A 35910-20407 $ 4,500 Early Childhood Education Project - State Department of Education N/A (3) 154,846 Read to be Ready Coaching Network Program - State Department of Education N/A (3) 10,000 Coordinated School Health - State Department of Education N/A (3) 100,000 Family Resource Center - State Department of Education N/A (3) 31,194 Safe Schools Act - State Department of Education N/A (3) 68,490 School Safety - State Department of Education N/A (3) 175,995 Drivers Education - State Department of Education N/A (3) 73,773 Kindergarten Entry Inventory - State Department of Education N/A (3) 700 Child Care and Development Block Grant - State Department of Education N/A (3) 39,324 Archives Grant - State Department of Library and Archives N/A (3) 3,000 Litter Program - State Department of Transportation N/A Z-19-LIT-090 48,264 Used Oil Grant - State Department of Environment and Conservation N/A (3) 26,828 State Aid Program - State Department of Transportation N/A (3) 1,144,750 Court Security Grant Program - Administrative Office of the Courts N/A (3) 10,089 Rural Local Health Services - State Department of Health N/A GG-19-59271-00 572,281 (8) State Access to Health and Healthy Active Built Environments - State Department of Health N/A Z-17-152614 5,428
Total State Grants $ 2,469,462
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) Washington County elected not to use the 10% de minimis cost rate permitted in the Uniform Guidance.(3) Information not available.(4) Forest Service and Roads Cluster total $15,791; Child Nutrition Cluster total $2,110,346;
Special Education Cluster total $2,017,640; Medicaid Cluster total $68,612; and CCDF Cluster total $47,750.(5) During the year ended June 30, 2019, Washington County received excess military equipment from the U.S. Department of
Military valued at $5,448.(6) Z-18-THS380, $20,668; Z-19-THS353, $5,860.(7) 34101-19717, $43,376; 34101-10418, $109,597.(8) Multi-service contract.(9) Total for CFDA No. 10.555 is $1,666,686.
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Washington County, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2019
Fiscal Page Finding CFDAYear Number Number Number
OFFICES OF COUNTY MAYOR AND DIRECTOR OF ACCOUNTS AND BUDGETS
2018 264 2018-001 N/A
2018 265 2018-002 N/A
2018 267 2018-003 The County had Purchasing Deficiencies N/A
OFFICE OF DIRECTOR OF SCHOOLS
2018 268 2018-004 N/A
OFFICE OF CLERK AND MASTER
2018 269 2018-005 N/A
OFFICE OF SHERIFF
2018 270 2018-006 N/A
The Office had Deficiencies in Budget Operations
Current Status
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 ornot. Presented below are financial statement findings along with their current status from the Comprehensive Annual Financial Report for Washington County, Tennessee, for the year ended June 30, 2019.
Prior-year Financial Statement Findings
The Office had Deficiencies in Budget Operations Corrected
Accounting Records do not Conform with the County Uniform Chart of Accounts.
Title of Finding
Corrected
Corrected
Corrected
The Sheriff's Office did not File Some State Prisoner Board Bills for Reimbursement in a Timely Manner
Corrected
There were no prior-year federal award findings to report.
Prior-year Federal Awards Findings
The Accounting Software did not Provide a Cash Journal
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Financial Statements:
1. Our report on the financial statements of Washington 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 inaccordance with 2 CFR 200.516(a)? NO
7. Identification of major federal programs:
* CFDA Numbers: 10.553 and 10.555 Nutrition Cluster: School Breakfast Program and National School Lunch Program
* CFDA Numbers: 84.027 and 84.173 Special Education Cluster:Special Education - Grants to States,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
WASHINGTON COUNTY, TENNESSEE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30, 2019
PART I, SUMMARY OF AUDITOR'S RESULTS
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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.
OFFICES OF COUNTY MAYOR AND DIRECTOR OF ACCOUNTS AND BUDGETS
FINDING 2019-001 THE OFFICES HAD DEFICIENCIES IN THE ADMINISTRATION OF PAYROLL (Internal Control – Significant Deficiency Under Government Auditing Standards)
In reviewing the administration of payroll, we noted that in most instances employees’ time worked and leave taken were entered directly into the county’s payroll software system by officials or department heads, and the payroll software documented the person entering and approving the employees’ time. However, summary time reports or individual time sheets were not always forwarded to the Payroll Department to support the time worked and leave taken entered into the payroll system or to ensure the payroll was processed accurately. We were informed that the individual employee time sheets were maintained by the official or department head in most instances. While the ability to report time through the payroll software system is useful, sound business practices dictate the underlying time sheets or other supporting documentation should be reviewed periodically by the Payroll Department staff to confirm that the employees’ time worked and leave taken information being reported is accurate. If time sheets are not reviewed for accuracy, there is an increased risk that time will be reported and paid incorrectly. This deficiency exists because management does not have access to all supporting time records.
RECOMMENDATION
Employee time sheets and other supporting documentation should be reviewed periodically by employees of the Payroll Department to confirm its accuracy.
MANAGEMENT’S RESPONSE – COUNTY MAYOR AND DIRECTOR ACCOUNTS AND BUDGETS
Of the 26 pay periods in the year, management will ensure that the Payroll Department sample the reported time by comparison of elected official’s electronic postings of the time worked to manually signed and approved time sheets.
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OFFICE OF COUNTY MAYOR
FINDING 2019-002 THE SOLID WASTE OFFICE DID NOT DEPOSIT SOME FUNDS WITHIN THREE DAYS OF COLLECTION (A. – Noncompliance Under Government Auditing Standards; B – Internal Control – Significant Deficiency Under Government Auditing Standards)
As part of our audit procedures for obtaining reasonable assurance that funds collected at the Tire Recycling Facility and the Solid Waste Office were receipted and deposited properly, we judgmentally selected receipts for the months of January and April 2019 to trace to deposits with the county Trustee’s Office. Our examination revealed the following deficiencies, which can be attributed to a lack of management oversight.
A. Some funds were not deposited within three days of collection as required by Section5-8-207, Tennessee Code Annotated. During the months tested, four items were heldfrom four to seven business days after being receipted before being deposited withthe county Trustee’s Office. The delay in depositing funds weakens internal controlsover collections and increases the risk of fraud and misappropriation.
B. Some checks receipted at the Solid Waste Courthouse Office from charge customerswere often dated well in advance of the receipt date. This indicates that the checkswere held for an undetermined amount of time prior to being receipted and depositedwith the county Trustee’s Office. This practice of issuing receipts subsequent to theactual collection increases the risks that collections will not be accounted forproperly.
RECOMMENDATION
All collections should be deposited within three days as required by state statute, and receipts should be issued at the time of collection.
MANAGEMENT’S RESPONSE – COUNTY MAYOR AND DIRECTOR OF ACCOUNTS AND BUDGETS
Illness and other absenteeism contributed to the failure to meet the three-day deposit law. Management is concerned that checks were being held or otherwise not being deposited until after three days of receipt. Checks received via mail will be forwarded directly to the Trustee’s Office for deposit.
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OFFICE OF DIRECTOR OF SCHOOLS
FINDING 2019-003 VARIOUS SCHOOL DEPARTMENT FUNDS HAD DEFICIENCIES IN THE MAINTENANCE OF PAYROLL DEDUCTION RECORDS AND ACCOUNTS (Internal Control – Significant Deficiency Under Government Auditing Standards)
Our audit revealed the following deficiencies related to the administration and maintenance of the accounting and reporting systems.
A. Several general ledger payroll liability accounts were not reconciled adequately withsubsidiary payroll records, monthly billings, and payments made from various SchoolDepartment funds. As a result, audit adjustments in the General Purpose School Fundtotaling $548,703 were made to the Medical Insurance Contribution payroll liabilityaccount.
B. The employee health insurance bank clearing account had not been reconciled adequatelywith the general ledger payroll liability accounts resulting in an unidentified balance.The School Department maintains a bank clearing account for deposits of employeepayroll deductions and School Department contributions for employee health insurancepremiums, which are then withdrawn from the account by the state insurance programadministrator. When determining the amount to remit to the account from the GeneralPurpose School Fund, the School Department failed to consider deposits made from theCentral Cafeteria Fund. This resulted in an overpayment of $112,774 from the GeneralPurpose School Fund to the employee health insurance clearing account. Because theaccount was not reconciled adequately with the general ledger, instead of recognizing theproper expenditure amount, an estimated payable totaling $315,000 was booked at June30 for the total of the July 2019 withdrawal. At June 30, 2019, the employee healthinsurance bank clearing account had a balance of $474,408, and the General PurposeSchool Fund had an estimated payable of $315,000 totaling $789,408. After deposit of the$315,000 on July 12, 2019, and the withdrawal of $784,130 for July premiums, anunidentified balance of $5,278 ($789,408 less $784,130) remained.
Sound business practices dictate that financial records should be reviewed for accuracy and completeness, and all general ledger accounts should be reconciled monthly. The failure to properly maintain accounting records on a current basis diminishes the usefulness of the financial records as a management tool and results in a loss of budgetary and accounting control and increases the risk that errors will not be discovered and corrected in a timely manner. These deficiencies can be attributed to lack of management oversight and the failure of management to take proper responsibility for the accounting records.
RECOMMENDATION
All payroll deductions, general ledger payroll liability accounts, and the employee health insurance bank clearing account should be reconciled accurately on a monthly basis with subsidiary records, billings, receipts, and payments. The School Department should maintain accounting records on a current basis and review the financial statements for accuracy and completeness and provide the School Board with accurate financial reports each month.
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MANAGEMENT’S RESPONSE – SCHOOL DEPARTMENT DIRECTOR OF FINANCE
To clarify, it is agreed the overall financial statements are correct in relation to capturing all Insurance Expenses for the 2019 fiscal year. It was discovered in relation to the way Dietary Insurance Expense was being captured; it was not being adequately accounted on the Expense Report on a monthly basis but was being captured at year-end when the accounts were trued up. However, the true-up was increasing the Instructional category instead of the Dietary category. Since this was discovered, Dietary Insurance Expense is now being captured correctly on a monthly basis.
In relation to the $112,774 overpayment to the Employee Health Insurance Account, this represents an overage amount deposited into the bank account only and not an overpayment to the actual State Insurance Plan. This was caused by a separate deposit that is made on a monthly basis from the Dietary Department relating to the Dietary employees’ portion of his or her Health Insurance. This is now being properly accounted for in the monthly Health Insurance payment calculation and is not expected to reoccur.
Additional tracking of cash flows into and out of the Insurance Bank Clearing Account has been put in place on a monthly basis. The Health Insurance Premiums for the State Insurance Plan are paid monthly; however, the employee contribution portion is only deducted on a 10-month basis.
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FINDING 2019-004 THE SCHOOL FEDERAL PROJECTS FUND HAD A CASH OVERDRAFT OF $29,958 AT JUNE 30, 2019 (Internal Control – Significant Deficiency Under Government Auditing Standards)
The School Federal Projects Fund had a cash overdraft of $29,958 at June 30, 2019. This cash overdraft resulted from the issuance of checks exceeding cash on deposit with the county trustee despite a transfer of $500,000 from the General Purpose School Fund in the prior year for cash flow purposes. Sound business practices dictate that expenditures be held within available funds. This cash overdraft was liquidated on July 10, 2019, with the receipt of funds from the Tennessee Department of Education.
RECOMMENDATION
School Department personnel should monitor their cash balance and not issue checks exceeding cash on deposit with the county trustee.
MANAGEMENT’S RESPONSE – SCHOOL DEPARTMENT DIRECTOR OF FINANCE
The overage of $29,958 was listed in relation to the accounting records; however, the actual bank clearing account with the trustee was not overdrawn. Included in the year ending financials on June 30, 2019, were two deferred payrolls for July 2019 and August 2019, which totaled $86,053 for each month. A payroll payable should have been set up for these two months, which would have appropriately reflected an additional $172,106 in the cash balance for federal projects as of June 30, 2019. Going forward deferred payroll amounts at year-end closing will be properly reflected as a payroll payable, which will more accurately reflect the cash balance.
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FINDING 2019-005 UNCLAIMED FUNDS WERE NOT REPORTED AND PAID TO THE STATE (Noncompliance Under Government Auditing Standards)
The School Department did not report and pay to the state unclaimed funds (old outstanding checks) totaling $58,335 and $1,295 in the General Purpose School and School Federal Projects funds, respectively. At June 30, 2019, the School Department had 63 outstanding checks totaling $58,335 in the General Purpose School Fund and seven outstanding checks totaling $1,295 in the School Federal Projects Fund that were all issued prior to July 1, 2017. The Unclaimed Property Act, Section 66-29-101, et seq., Tennessee Code Annotated, provides that any funds held 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.
RECOMMENDATION
The School Department should report and pay to the state unclaimed funds held for more than one year as required by state statute.
MANAGEMENT’S RESPONSE – SCHOOL DEPARTMENT DIRECTOR OF FINANCE
I concur with this finding. Additional focus and direction will be devoted to processing the above amounts as unclaimed property with the State of Tennessee in fiscal year 2020.
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OFFICE OF COUNTY CLERK
FINDING 2019-006 THE OFFICE DID NOT REVIEW ITS SOFTWARE AUDIT LOGS (Internal Control – Significant Deficiency Under Government Auditing Standards)
The software application used by the office generated logs that displayed changes and deletions made by users. Because these logs provided the only audit trail of these changes and deletions, the logs should be routinely reviewed for inappropriate activity. Management was aware of their importance but chose to discontinue the routine review of these audit logs. When the importance of these logs was again brought to management’s attention in June 2019, they resumed the review process. Without knowledge of system activity, errors and improper changes could occur and go undetected.
RECOMMENDATION
Management should review its audit logs on a routine basis. Any unusual transactions should be investigated.
MANAGEMENT’S RESPONSE – COUNTY CLERK
I concur with this finding, and a corrective action plan has been implemented.
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PART III, FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS
There were no findings and questioned costs related to federal awards for the year ended June 30, 2019.
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FindingNumber
OFFICES OF COUNTY MAYOR AND DIRECTOR OF ACCOUNTS AND BUDGETS
2019-001 The Offices had Deficiencies in the Administration of Payroll
OFFICE OF COUNTY MAYOR
2019-002
OFFICE OF DIRECTOR OF SCHOOLS - SCHOOL'S FINANCE DIRECTOR
2019-003
2019-004
2019-005 Unclaimed Funds were not Reported and Paid to the State
OFFICE OF COUNTY CLERK
2019-006
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.
Washington County, TennesseeManagement's Corrective Action Plan
For the Year Ended June 30, 2019
Title of Finding
The School Federal Projects Fund had a Cash Overdraft of $29,958 at June 30, 2019
The Office did not Review Its Software Audit Logs
Corrective ActionPlan Page Number
The Solid Waste Office did not Deposit Some Funds within Three Days of Collection
Various School Department Funds had Deficiencies in the Maintenance of Payroll Deduction Records and Accounts
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Dr. William R. Flanary Director Of Schools
405 W. College St. Jonesborough,TN 37659
Phone (423) 753-1100
now being properly accounted for in the monthly Health Insurance payment calculation and is not expected to reoccur.
Additional tracking of cash flows into and out of the Insurance Bank Clearing Account have been put into place on a monthly basis. The Health Insurance Premiums for the State Insurance Plan are paid monthly, however the employee contribution portion is only deducted on a 10-month basis.
FINDING: THE SCHOOL FEDERAL PROJECTS FUND HAD A CASH OVERDRAFT OF $29,958 AT JUNE 30, 2019 (Internal Control -Significant Deficiency Under Government Auditing Standards)
Response and Corrective Action Plan Prepared by: W. Brad Hale, WCDE Director of Finance
Person Responsible for Implementing the Corrective Action: W. Brad Hale, WCDE Director of Finance
Anticipated Completion Date of Corrective Action: Immediate with Follow Up
Repeat Finding: No
Reason Corrective Action was Not Taken Prior Year: NIA
Planned Corrective Action:
The overage of $29,958 was listed in relation to the accounting record; however the actual Bank Clearing Account with the Trustee was not overdrawn. Included in the year ending financials on June 30, 2019, were two deferred payrolls for July 2019 and August 2019, which totaled $86,053.47 for each month. A Payroll Payable should have been set up for these two months which would have appropriately reflected an additional $172, l 06.94 in the cash balance for Federal Projects as of June 30, 2019. Going forward deferred Payroll amounts at year-end closing will be properly reflected as a Payroll Payable, which will more accurately reflect the cash balance.
Annette Buchanan Jason Day Mary Beth Dellinger
Board of Directors
Keith Ervin Chad Fleenor Todd Ganger
David Hammond Mitch Meredith Phillip McLain
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BEST PRACTICE
Accounting literature describes a best practice as a recommended policy, procedure, or technique that aids management in improving financial performance. Historically, a best practice has consistently shown superior results over conventional methods.
The Division of Local Government Audit strongly believes that the item noted below is a best practice that should be adopted by the governing body as a means of significantly improving accountability and the quality of services provided to the citizens of Washington County.
WASHINGTON COUNTY SHOULD ADOPT A CENTRAL SYSTEM OF ACCOUNTING, BUDGETING, AND PURCHASING
THAT INCLUDES THE DISCRETELY PRESENTED WASHINGTON COUNTY SCHOOL DEPARTMENT
Washington County does not have a central system of accounting, budgeting, and purchasing that includes the discretely presented Washington County School Department. Sound business practices dictate that establishing a central system would significantly improve internal controls over the accounting, budgeting, and purchasing processes. The absence of a central system of accounting, budgeting, and purchasing has been a management decision by the county commission resulting in decentralization and some duplication of effort. The Division of Local Government Audit strongly believes that the adoption of a central system of accounting, budgeting, and purchasing is a best practice that would significantly improve accountability and the quality of services provided to the citizens of Washington County. Therefore, we recommend the adoption of a centralized system of accounting, budgeting, and purchasing as authorized in the Tennessee Code Annotated or a private act, which would provide for a central system of accounting, budgeting, and purchasing covering all county departments.
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