gibson county tennessee - comptroller.tn.gov

ANNUAL FINANCIAL REPORT

GIBSON COUNTY, TENNESSEE FOR THE YEAR ENDED JUNE 30, 2020

DIVISION OF LOCAL GOVERNMENT AUDIT

ANNUAL FINANCIAL REPORT

GIBSON COUNTY, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2020

COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

Director

MEGAN FOSTER LEE ANN WEST, CPA, CGFM ELISHA CROWELL, CISA, CFE Audit Manager State Auditors

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

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Exhibit Page(s)

Summary of Audit Findings 5

INTRODUCTORY SECTION 6

Gibson County Officials 7

FINANCIAL SECTION 8

Independent Auditor's Report 9-11BASIC FINANCIAL STATEMENTS: 12

Government-wide Financial Statements:Statement of Net Position A 13-14Statement of Activities B 15-16

Fund Financial Statements:Governmental Funds:

Balance Sheet C-1 17-18Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Position C-2 19Statement of Revenues, Expenditures, and Changes in

Fund Balances C-3 20-21Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 22

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

General Fund C-5 23-26Highway/Public Works Fund C-6 27

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities D 28

Index and Notes to the Financial Statements 29-70REQUIRED SUPPLEMENTARY INFORMATION: 71

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Planof TCRS – Gibson County Employees E-1 72

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Planof TCRS – Gibson County Board of Education E-2 73

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Gibson County Employees E-3 74

Schedule of Contributions Based on Participation in the Public EmployeePension Plan of TCRS – Gibson County Board of Education E-4 75

Notes to the Required Supplementary Information 76-77

GIBSON COUNTY, TENNESSEETABLE OF CONTENTS

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Exhibit Page(s)

COMBINING AND INDIVIDUAL FUND FINANCIALSTATEMENTS AND SCHEDULES: 78

Nonmajor Governmental Funds: 79Combining Balance Sheet F-1 80Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances F-2 81-82Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual and Budget:Solid Waste/Sanitation Fund F-3 83Drug Control Fund F-4 84

Major Governmental Fund: 85Schedule of Revenues, Expenditures, and Changes in Fund

Balance – Actual and Budget:General Debt Service Fund G 86

Fiduciary Funds: 87Combining Statement of Fiduciary Assets and Liabilities H-1 88Combining Statement of Changes in Assets and Liabilities –

All Agency Funds H-2 89-90Miscellaneous Schedules: 91

Schedule of Changes in Long-term Bonds I-1 92Schedule of Long-term Debt Requirements by Year I-2 93Schedule of Transfers I-3 94Schedule of Salaries and Official Bonds of Principal Officials I-4 95Schedule of Detailed Revenues – All Governmental Fund Types I-5 96-109Schedule of Detailed Expenditures – All Governmental Fund Types I-6 110-131Schedule of Detailed Receipts, Disbursements, and Changes in

Cash Balances – City Agency Funds I-7 132

SINGLE AUDIT SECTION 133

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 134-135

Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule ofExpenditures of Federal Awards Required by Uniform Guidance 136-138

Schedule of Expenditures of Federal Awards and State Grants 139-140Summary Schedule of Prior-year Findings 141Schedule of Findings and Questioned Costs 142-146Management's Corrective Action Plan 147-150Best Practice 151

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Summary of Audit FindingsAnnual Financial Report

Gibson County, Tennessee For the Year Ended June 30, 2020

Scope

We have audited the basic financial statements of Gibson County as of and for the year ended June 30, 2020.

Results

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

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

Findings

The following are summaries of the audit findings:

OFFICE OF COUNTY MAYOR

♦ The office had deficiencies related to the administration of payroll resulting in cashshortages of $9,336 at June 30, 2020.

♦ General ledger payroll deduction accounts were not reconciled with payroll reports andpayments in the general fund.

OFFICE OF ROAD SUPERVISOR

♦ The Highway/Public Works Fund required material audit adjustments for properfinancial statement presentation.

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INTRODUCTORY SECTION

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Gibson County OfficialsJune 30, 2020

Officials

Tom Witherspoon, County MayorCarl Stoppenhagen, Road SupervisorMelissa Workman, TrusteeGary Paschall, Assessor of PropertyJoyce Brown, County ClerkCynthia Flowers, Circuit and General Sessions Courts ClerkShonna Smith, Clerk and Master - TrentonAmanda Brown, Clerk and Master - HumboldtBarbara Davidson, Register of DeedsPaul Thomas, Sheriff

Board of County Commissioners

Tom Witherspoon, County Mayor, Chairman Todd LawsonSteve Brasher Todd LittletonCody Childress Michael LongmireBobby Cotham Don McEwenAlecia Craig Kevin Morgan Nelson Cunningham Bradley OwensEric Egbert Tony PillowMark Flake Nathan ReedJerry Gordon Keith SteeleSteve Hemann Robin SummersLarry Kimery Jason TubbsAndrea Knight Clayton WhiteTravis Landrum Yahweh Yahweh

Highway Commission

Tom Witherspoon, County Mayor, ChairmanGerald DavisRoger HanksAndrew JohnsonMark McGillBuddy Sorrells

Audit Committee

Bill Joyner, ChairmanAshley ComstockMichael Longmire

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FINANCIAL SECTION

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Independent Auditor’s Report

Gibson County Mayor and Board of County Commissioners Gibson 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 Gibson County, Tennessee, as of and for the year ended June 30, 2020, 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 Gibson County Emergency Communications District, which represent 100 percent of the assets, net position, and revenues of the aggregate discretely presented component unit. 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 Gibson 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 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

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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 Gibson County, Tennessee, as of June 30, 2020, and the respective changes in financial position and the respective budgetary comparisons for the General and Highway/Public Works funds for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

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

Accounting principles generally accepted in the United States of America require that the schedules of changes in the county’s and Board of Education’s net pension liability (asset) and related ratios and schedules of county and Board of Education contributions, 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 Gibson County’s basic financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service Fund, miscellaneous schedules, and other information such as the introductory section and management’s corrective action plans are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is also presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is not a required part of the basic financial statements.

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The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the General Debt Service Fund, 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 Fund, 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 and management’s corrective action plans 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 it.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated October 23, 2020, on our consideration of Gibson 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 Gibson 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 Gibson County’s internal control over financial reporting and compliance.

Very truly yours,

Justin P. Wilson Comptroller of the Treasury Nashville, Tennessee

October 23, 2020

JPW/tg

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BASIC FINANCIAL STATEMENTS

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Exhibit A

Gibson County, TennesseeStatement of Net PositionJune 30, 2020

Primary Component UnitGovernment Emergency

Governmental CommunicationsActivities District

ASSETS

Cash $ 1,640 $ 863,108Equity in Pooled Cash and Investments 14,784,118 0Accounts Receivable 3,551,621 10,085Allowance for Uncollectibles (1,412,044) 0Due from Other Governments 1,180,359 0Property Taxes Receivable 8,316,599 0Allowance for Uncollectible Property Taxes (137,242) 0Prepaid Items 0 2,218Accrued Interest Receivable 0 4,148Cash Shortage 83,597 0Net Pension Asset - Gibson County Employees Agent Plan 3,055,008 0Net Pension Asset - Gibson County Board of Education Agent Plan 234,631 0Capital Assets: Assets Not Depreciated: Land 5,313,966 66,400 Construction in Progress 734,105 0 Assets Net of Accumulated Depreciation: Buildings and Improvements 12,177,932 288,738 Infrastructure 16,590,117 0 Other Capital Assets 4,598,029 181,738Total Assets $ 69,072,436 $ 1,416,435

DEFERRED OUTFLOWS OF RESOURCES

Deferred Charge on Refunding $ 152,554 $ 0Pension Changes in Experience 187,064 190,836Pension Changes in Assumptions 343,506 19,807Pension Contributions After Measurement Date 853,564 47,441Total Deferred Outflows of Resources $ 1,536,688 $ 258,084

LIABILITIES

Accounts Payable $ 1,941 $ 10,864Accrued Payroll 51,623Payroll Deductions Payable 34,412 0Contracts Payable 751,997 0Accrued Leave 0 5,537Accrued Interest Payable 8,375 0Unearned Revenue 0 163,333Noncurrent Liabilities: Due Within One Year - Debt 870,000 0 Due Within One Year - Other 1,540 0 Due in More Than One Year - Debt 11,595,457 0 Due in More Than One Year - Other 29,246 36,449Total Liabilities $ 13,344,591 $ 216,183

DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 8,105,443 $ 0Pension Changes in Experience 755,695 69,646Pension Changes on Investment Earnings 368,023 16,842Total Deferred Inflows of Resources $ 9,229,161 $ 86,488

(Continued)

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Exhibit A

Gibson County, TennesseeStatement of Net Position (Cont.)

Primary Component UnitGovernment Emergency

Governmental CommunicationsActivities District

NET POSITION

Net Investment in Capital Assets $ 26,948,692 $ 536,876Restricted for: General Government 140,840 0 Finance 114,263 0 Administration of Justice 141,015 0 Public Safety 97,418 0 Public Health and Welfare 17,364 0 Social, Cultural, and Recreational Services 32,971 0 Highways/Public Works 716,709 0 Debt Service 149,641 0 Pensions 3,289,639 0Unrestricted 16,386,820 834,972

Total Net Position $ 48,035,372 $ 1,371,848

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

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Exhibit B

Gibson County, TennesseeStatement of ActivitiesFor the Year Ended June 30, 2020

Primary ComponentOperating Capital Government Unit

Charges Grants Grants Total Emergencyfor and and Governmental Communications

Functions/Programs Expenses Services Contributions Contributions Activities District

Primary Government: Governmental Activities: General Government $ 2,577,612 $ 533,044 $ 205,070 $ 517,107 $ (1,322,391) $ 0 Finance 1,596,957 1,236,245 0 0 (360,712) 0 Administration of Justice 2,046,913 818,902 91,460 0 (1,136,551) 0 Public Safety 7,313,589 1,924,028 178,929 0 (5,210,632) 0 Public Health and Welfare 4,709,629 2,352,130 416,050 0 (1,941,449) 0 Social, Cultural, and Recreational Services 487,233 46,737 148,296 1,082 (291,118) 0 Agriculture and Natural Resources 294,389 0 0 0 (294,389) 0 Other Operations (371,437) 0 0 0 371,437 0 Highways 5,739,878 50,490 3,197,589 1,713,945 (777,854) 0 Interest on Long-term Debt 341,417 0 46,017 0 (295,400) 0

Total Primary Government $ 24,736,180 $ 6,961,576 $ 4,283,411 $ 2,232,134 $ (11,259,059) $ 0

Component Unit: Emergency Communications District $ 1,158,524 $ 945,973 $ 40,000 $ 0 $ 0 $ (172,551)

Total Component Unit $ 1,158,524 $ 945,973 $ 40,000 $ 0 $ 0 $ (172,551)

(Continued)

Program Revenues

Net (Expense) Revenue and Changes in Net Position

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Exhibit B

Gibson County, TennesseeStatement of Activities (Cont.)

Primary ComponentOperating Capital Government Unit

Charges Grants Grants Total Emergencyfor and and Governmental Communications

Functions/Programs Expenses Services Contributions Contributions Activities District

General Revenues: Taxes: Property Taxes Levied for General Purposes $ 7,928,521 $ 0 Property Taxes Levied for Debt Service 952,697 0 Local Option Sales Taxes 675,713 0 Wheel Tax 2,165,262 0 Litigation Tax 142,218 0 Business Tax 507,228 0 Other Local Taxes 132,457 0 Grants and Contributions Not Restricted for Specific Programs 1,463,575 0 Unrestricted Investment Income 416,181 15,586 Miscellaneous 29,981 19,355Total General Revenues $ 14,413,833 $ 34,941

Change in Net Position $ 3,154,774 $ (137,610)Net Position, July 1, 2019 44,880,598 1,509,458

Net Position, June 30, 2020 $ 48,035,372 $ 1,371,848


Net (Expense) Revenue and Changes Program Revenues

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Exhibit C-1

Gibson County, TennesseeBalance SheetGovernmental FundsJune 30, 2020

OtherHighway / General Govern- Total

Public Debt mental GovernmentalGeneral Works Service Funds Funds

ASSETS

Cash $ 0 $ 0 $ 0 $ 1,640 $ 1,640Equity in Pooled Cash and Investments 9,273,014 3,113,711 1,819,848 471,867 14,678,440Accounts Receivable 2,702,562 849,059 0 0 3,551,621Allowance for Uncollectibles (1,412,044) 0 0 0 (1,412,044)Due from Other Governments 412,890 737,216 30,253 0 1,180,359Due from Other Funds 107,318 0 0 6,887 114,205Property Taxes Receivable 7,430,311 0 886,288 0 8,316,599Allowance for Uncollectible Property Taxes (122,616) 0 (14,626) 0 (137,242)Cash Shortage 82,913 0 0 684 83,597

Total Assets $ 18,474,348 $ 4,699,986 $ 2,721,763 $ 481,078 $ 26,377,175

LIABILITIES

Accounts Payable $ 1,941 $ 0 $ 0 $ 0 $ 1,941Accrued Payroll 51,623 0 0 0 51,623Payroll Deductions Payable 34,412 0 0 0 34,412Contracts Payable 0 751,997 0 0 751,997Due to Other Funds 6,887 0 0 1,640 8,527Total Liabilities $ 94,863 $ 751,997 $ 0 $ 1,640 $ 848,500

DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 7,241,658 $ 0 $ 863,785 $ 0 $ 8,105,443Deferred Delinquent Property Taxes 49,100 0 5,462 0 54,562Other Deferred/Unavailable Revenue 1,118,345 747,495 0 0 1,865,840Total Deferred Inflows of Resources $ 8,409,103 $ 747,495 $ 869,247 $ 0 $ 10,025,845

(Continued)

Major FundsNonmajor

Funds

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Exhibit C-1

Gibson County, TennesseeBalance SheetGovernmental Funds (Cont.)



FUND BALANCES

Restricted:Restricted for General Government $ 140,840 $ 0 $ 0 $ 0 $ 140,840Restricted for Finance 114,263 0 0 0 114,263Restricted for Administration of Justice 141,015 0 0 0 141,015Restricted for Public Safety 51,272 0 0 46,146 97,418Restricted for Public Health and Welfare 17,364 0 0 0 17,364Restricted for Social, Cultural, and Recreational Services 32,971 0 0 0 32,971

Committed:Committed for General Government 535,874 0 0 0 535,874Committed for Public Health and Welfare 0 0 0 119,040 119,040Committed for Other Operations 263,052 0 0 0 263,052Committed for Highways/Public Works 0 3,200,494 0 0 3,200,494Committed for Debt Service 0 0 1,852,516 0 1,852,516Committed for Capital Projects 0 0 0 314,252 314,252

Unassigned 8,673,731 0 0 0 8,673,731Total Fund Balances $ 9,970,382 $ 3,200,494 $ 1,852,516 $ 479,438 $ 15,502,830

Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 18,474,348 $ 4,699,986 $ 2,721,763 $ 481,078 $ 26,377,175


Major FundsNonmajor

Funds

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Exhibit C-2

Gibson County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net PositionJune 30, 2020

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

Total fund balances - balance sheet - governmental funds (Exhibit C-1) $ 15,502,830

(1) Capital assets used in governmental activities are not financialresources and therefore are not reported in the governmental funds. Add: land $ 5,313,966 Add: construction in progress 734,105 Add: buildings and improvements net of accumulated depreciation 12,177,932 Add: infrastructure net of accumulated depreciation 16,590,117 Add: other capital assets net of accumulated depreciation 4,598,029 39,414,149

(2) Long-term liabilities are not due and payable in the current periodand therefore are not reported in the governmental funds. Less: bonds payable $ (11,335,000) Add: deferred amount on refunding 152,554 Less: compensated absences payable (30,786) Less: accrued interest on bonds (8,375) Less: other deferred revenue - premium on debt (1,130,457) (12,352,064)

(3) Amounts reported as deferred outflows of resources and deferredinflows of resources related to pensions will be amortized andrecognized as components of pension expense in future years. Add: deferred outflows of resources related to pensions $ 1,384,134 Less: deferred inflows of resources related to pensions (1,123,718) 260,416

(4) Net pension assets of the agent plans are not current financialresources and therefore are not reported in the governmental funds. Add: net pension asset - Gibson County Employees Agent Plan $ 3,055,008 Add: net pension asset - Gibson County Board of Education Agent Plan 234,631 3,289,639

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

1,920,402

Net position of governmental activities (Exhibit A) $ 48,035,372


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Exhibit C-3

Gibson County, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund BalancesGovernmental FundsFor the Year Ended June 30, 2020



RevenuesLocal Taxes $ 8,850,020 $ 3,000,342 $ 1,031,810 $ 0 $ 12,882,172Licenses and Permits 119,533 0 0 0 119,533Fines, Forfeitures, and Penalties 305,706 0 0 46,877 352,583Charges for Current Services 3,125,856 1,876 0 61,393 3,189,125Other Local Revenues 439,656 71,581 416,181 97 927,515Fees Received From County Officials 1,997,607 0 0 0 1,997,607State of Tennessee 3,296,584 5,282,525 30,253 0 8,609,362Federal Government 267,260 0 0 516,101 783,361Other Governments and Citizens Groups 203,321 0 0 0 203,321

Total Revenues $ 18,605,543 $ 8,356,324 $ 1,478,244 $ 624,468 $ 29,064,579

ExpendituresCurrent:

General Government $ 1,253,132 $ 0 $ 0 $ 0 $ 1,253,132Finance 1,664,304 0 0 0 1,664,304Administration of Justice 2,015,511 0 0 150 2,015,661Public Safety 6,637,646 0 0 910,822 7,548,468Public Health and Welfare 4,430,977 0 0 303,732 4,734,709Social, Cultural, and Recreational Services 471,749 0 0 0 471,749Agriculture and Natural Resources 285,447 0 0 0 285,447Other Operations 767,199 0 0 522,084 1,289,283Highways 0 7,641,214 0 0 7,641,214

Debt Service:Principal on Debt 0 0 1,015,000 0 1,015,000Interest on Debt 0 0 301,590 0 301,590Other Debt Service 0 0 151,441 0 151,441

(Continued)

Major FundsNonmajor

Funds

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Exhibit C-3

Gibson County, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund BalancesGovernmental Funds (Cont.)



Expenditures (Cont.)Capital Projects $ 0 $ 0 $ 0 $ 57,655 $ 57,655

Total Expenditures $ 17,525,965 $ 7,641,214 $ 1,468,031 $ 1,794,443 $ 28,429,653

Excess (Deficiency) of RevenuesOver Expenditures $ 1,079,578 $ 715,110 $ 10,213 $ (1,169,975) $ 634,926

Other Financing Sources (Uses)Refunding Debt Issued $ 0 $ 0 $ 7,175,000 $ 0 $ 7,175,000Premiums on Debt Sold 0 0 1,121,184 0 1,121,184Proceeds from Sale of Capital Assets 900 0 0 0 900Insurance Recovery 5,440 0 0 0 5,440Transfers In 0 0 0 936,600 936,600Transfers Out (936,600) 0 0 0 (936,600)Payments to Refunded Debt Escrow Agent 0 0 (8,174,655) 0 (8,174,655)

Total Other Financing Sources (Uses) $ (930,260) $ 0 $ 121,529 $ 936,600 $ 127,869

Net Change in Fund Balances $ 149,318 $ 715,110 $ 131,742 $ (233,375) $ 762,795Fund Balance, July 1, 2019 9,821,064 2,485,384 1,720,774 712,813 14,740,035

Fund Balance, June 30, 2020 $ 9,970,382 $ 3,200,494 $ 1,852,516 $ 479,438 $ 15,502,830


Major FundsNonmajor

Funds

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Exhibit C-4

Gibson 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, 2020

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

Net change in fund balances - total governmental funds (Exhibit C-3) $ 762,795

(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 $ 5,036,526 Less: current-year depreciation expense (3,116,828) 1,919,698

(2) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Add: deferred delinquent property taxes and other deferred June 30, 2020 $ 1,920,402 Less: deferred delinquent property taxes and other deferred June 30, 2019 (3,140,044) (1,219,642)

(3) The issuance of long-term debt (e.g., notes and bonds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas theseamounts are deferred and amortized in the statement of activities. Thisamount is the net effect of these differences in the treatment of long-term debt and related items. Add: principal payments on bonds $ 1,015,000 Less: refunding bond proceeds (7,175,000) Add: refunded bond principal 8,160,000 Less: change in premium on debt issuances (1,060,512) Less: change in deferred amount on refunding debt (56,584) 882,904

(4) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Change in net pension asset - Gibson County Employees Agent Plan $ 823,747 Change in net pension asset - Gibson County Board of Education Agent Plan 43,177 Change in deferred outflows related to pensions (162,968) Change in deferred inflows related to pensions 87,754 Change in accrued interest payable 16,757 Change in compensated absences payable 552 809,019

Change in net position of governmental activities (Exhibit B) $ 3,154,774


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Exhibit C-5

Gibson County, TennesseeStatement of Revenues, Expenditures, and Changes

in Fund Balance - Actual (Budgetary Basis) and BudgetGeneral FundFor the Year Ended June 30, 2020

Actual VarianceRevenues/ with Final

Actual Add: Expenditures Budget -(GAAP Encumbrances (Budgetary PositiveBasis) 6/30/2020 Basis) Original Final (Negative)

RevenuesLocal Taxes $ 8,850,020 $ 0 $ 8,850,020 $ 8,597,747 $ 8,615,747 $ 234,273Licenses and Permits 119,533 0 119,533 121,800 121,800 (2,267)Fines, Forfeitures, and Penalties 305,706 0 305,706 297,450 297,450 8,256Charges for Current Services 3,125,856 0 3,125,856 2,915,550 2,915,550 210,306Other Local Revenues 439,656 0 439,656 406,050 419,070 20,586Fees Received From County Officials 1,997,607 0 1,997,607 1,847,000 1,847,000 150,607State of Tennessee 3,296,584 0 3,296,584 3,947,531 3,974,413 (677,829)Federal Government 267,260 0 267,260 355,946 393,724 (126,464)Other Governments and Citizens Groups 203,321 0 203,321 261,704 307,672 (104,351)

Total Revenues $ 18,605,543 $ 0 $ 18,605,543 $ 18,750,778 $ 18,892,426 $ (286,883)

ExpendituresGeneral Government

County Commission $ 53,755 $ 0 $ 53,755 $ 60,292 $ 60,292 $ 6,537Board of Equalization 2,500 0 2,500 2,691 2,691 191County Mayor/Executive 219,633 0 219,633 227,817 227,817 8,184County Attorney 5,647 0 5,647 35,100 35,100 29,453Election Commission 223,564 0 223,564 253,825 253,825 30,261Register of Deeds 250,044 0 250,044 268,154 268,154 18,110Development 83,173 0 83,173 83,807 83,807 634County Buildings 411,439 0 411,439 438,592 454,292 42,853Preservation of Records 3,377 0 3,377 7,859 7,859 4,482

FinanceAccounting and Budgeting 145,309 0 145,309 168,800 184,634 39,325Property Assessor's Office 431,102 0 431,102 433,866 433,866 2,764County Trustee's Office 336,101 0 336,101 334,918 339,477 3,376

(Continued)

Budgeted Amounts

23

Exhibit C-5


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



Expenditures (Cont.)Finance (Cont.)

County Clerk's Office $ 751,792 $ 0 $ 751,792 $ 751,003 $ 760,020 $ 8,228Administration of Justice

Circuit Court 505,599 0 505,599 493,238 505,303 (296)General Sessions Court 258,051 0 258,051 257,926 262,026 3,975Drug Court 51,416 0 51,416 52,997 52,997 1,581Chancery Court 371,650 0 371,650 362,491 371,913 263Juvenile Court 338,099 0 338,099 373,120 379,420 41,321District Attorney General 50,027 0 50,027 52,569 53,380 3,353Other Administration of Justice 406,768 0 406,768 442,178 450,078 43,310Victim Assistance Programs 33,901 0 33,901 35,500 35,500 1,599

Public SafetySheriff's Department 2,781,073 0 2,781,073 2,756,213 2,842,113 61,040Jail 3,210,064 0 3,210,064 3,099,271 3,339,271 129,207Fire Prevention and Control 272,428 0 272,428 280,950 284,001 11,573Rural Fire Protection 5,846 0 5,846 0 6,459 613Civil Defense 182,461 0 182,461 209,097 209,097 26,636Other Emergency Management 7,378 0 7,378 41,387 41,387 34,009County Coroner/Medical Examiner 61,350 0 61,350 53,000 73,000 11,650Public Safety Grants Program 117,046 0 117,046 227,559 227,559 110,513

Public Health and WelfareLocal Health Center 110,681 0 110,681 110,473 110,473 (208)Rabies and Animal Control 71,959 0 71,959 89,777 89,777 17,818Ambulance/Emergency Medical Services 3,845,017 0 3,845,017 4,123,168 4,117,015 271,998Alcohol and Drug Programs 44,568 0 44,568 50,000 50,000 5,432Sanitation Management 8 0 8 0 0 (8)

(Continued)

Budgeted Amounts

24

Exhibit C-5





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

Sanitation Education/Information $ 61,470 $ 0 $ 61,470 $ 69,042 $ 69,042 $ 7,572Other Public Health and Welfare 297,274 0 297,274 573,896 573,896 276,622

Social, Cultural, and Recreational ServicesSenior Citizens Assistance 232,439 0 232,439 291,425 291,425 58,986Libraries 199,278 0 199,278 203,508 206,304 7,026Parks and Fair Boards 23,056 0 23,056 23,035 23,035 (21)Other Social, Cultural, and Recreational 16,976 0 16,976 8,000 24,800 7,824

Agriculture and Natural ResourcesAgricultural Extension Service 126,759 0 126,759 151,401 151,401 24,642Soil Conservation 107,538 0 107,538 108,047 108,047 509Flood Control 51,150 0 51,150 65,000 65,000 13,850

Other OperationsTourism 63,033 12,014 75,047 62,100 80,100 5,053Industrial Development 111,199 0 111,199 150,000 150,000 38,801Other Economic and Community Development 66,276 0 66,276 109,370 109,370 43,094Airport 152,121 0 152,121 192,220 192,220 40,099Veterans' Services 49,504 0 49,504 58,523 58,523 9,019Other Charges 227,015 0 227,015 246,878 246,878 19,863Contributions to Other Agencies 23,500 0 23,500 35,000 35,000 11,500Employee Benefits 19,972 0 19,972 33,857 43,856 23,884COVID-19 Grant #1 37,778 0 37,778 0 37,778 0COVID-19 Grant #2 16,801 0 16,801 0 16,801 0

Total Expenditures $ 17,525,965 $ 12,014 $ 17,537,979 $ 18,558,940 $ 19,096,079 $ 1,558,100

(Continued)

Budgeted Amounts

25

Exhibit C-5





Excess (Deficiency) of RevenuesOver Expenditures $ 1,079,578 $ (12,014) $ 1,067,564 $ 191,838 $ (203,653) $ 1,271,217

Other Financing Sources (Uses)Proceeds from Sale of Capital Assets $ 900 $ 0 $ 900 $ 0 $ 0 $ 900Insurance Recovery 5,440 0 5,440 0 7,480 (2,040)Transfers Out (936,600) 0 (936,600) (936,600) (936,600) 0

Total Other Financing Sources $ (930,260) $ 0 $ (930,260) $ (936,600) $ (929,120) $ (1,140)

Net Change in Fund Balance $ 149,318 $ (12,014) $ 137,304 $ (744,762) $ (1,132,773) $ 1,270,077Fund Balance, July 1, 2019 9,821,064 0 9,821,064 9,275,854 9,275,854 545,210

Fund Balance, June 30, 2020 $ 9,970,382 $ (12,014) $ 9,958,368 $ 8,531,092 $ 8,143,081 $ 1,815,287


Budgeted Amounts

26

Exhibit C-6


in Fund Balance - Actual (Budgetary Basis) and BudgetHighway/Public Works FundFor the Year Ended June 30, 2020


Actual Less: Add: Expenditures Budget -(GAAP Encumbrances Encumbrances (Budgetary PositiveBasis) 7/1/2019 6/30/2020 Basis) Original Final (Negative)

RevenuesLocal Taxes $ 3,000,342 $ 0 $ 0 $ 3,000,342 $ 2,785,000 $ 2,785,000 $ 215,342Charges for Current Services 1,876 0 0 1,876 2,500 2,500 (624)Other Local Revenues 71,581 0 0 71,581 26,500 26,500 45,081State of Tennessee 5,282,525 0 0 5,282,525 4,791,348 5,791,348 (508,823)Federal Government 0 0 0 0 135,000 135,000 (135,000)

Total Revenues $ 8,356,324 $ 0 $ 0 $ 8,356,324 $ 7,740,348 $ 8,740,348 $ (384,024)

ExpendituresHighways

Administration $ 211,260 $ 0 $ 0 $ 211,260 $ 228,004 $ 228,004 $ 16,744Highway and Bridge Maintenance 2,745,820 0 0 2,745,820 3,114,000 3,134,000 388,180Operation and Maintenance of Equipment 474,056 0 0 474,056 896,000 896,000 421,944Other Charges 146,964 0 0 146,964 185,000 185,000 38,036Employee Benefits 365,304 0 0 365,304 478,000 478,000 112,696Capital Outlay 3,697,810 (849,089) 1,939,949 4,788,670 3,940,000 4,940,000 151,330

Total Expenditures $ 7,641,214 $ (849,089) $ 1,939,949 $ 8,732,074 $ 8,841,004 $ 9,861,004 $ 1,128,930

Excess (Deficiency) of RevenuesOver Expenditures $ 715,110 $ 849,089 $ (1,939,949) $ (375,750) $ (1,100,656) $ (1,120,656) $ 744,906

Other Financing Sources (Uses)Insurance Recovery $ 0 $ 0 $ 0 $ 0 $ 5,000 $ 5,000 $ (5,000)

Total Other Financing Sources $ 0 $ 0 $ 0 $ 0 $ 5,000 $ 5,000 $ (5,000)

Net Change in Fund Balance $ 715,110 $ 849,089 $ (1,939,949) $ (375,750) $ (1,095,656) $ (1,115,656) $ 739,906Fund Balance, July 1, 2019 2,485,384 (849,089) 0 1,636,295 2,515,254 2,515,254 (878,959)

Fund Balance, June 30, 2020 $ 3,200,494 $ 0 $ (1,939,949) $ 1,260,545 $ 1,419,598 $ 1,399,598 $ (139,053)


Budgeted Amounts

27

Exhibit DGibson County, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2020

ASSETS

Cash $ 1,846,450Equity in Pooled Cash and Investments 119,206Due from Other Governments 2,361,975Property Taxes Receivable 14,636,159Allowance for Uncollectible Property Taxes (426,996)

Total Assets $ 18,536,794

LIABILITIES

Due to Other Taxing Units $ 16,619,920Due to Litigants, Heirs, and Others 1,916,874

Total Liabilities $ 18,536,794


AgencyFunds

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Note Page(s)

I. Summary of Significant Accounting PoliciesA. Reporting Entity 30B. Government-wide and Fund Financial Statements 31C. Measurement Focus, Basis of Accounting, and Financial 31

Statement PresentationD. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and

Net Position/Fund Balance1. Deposits and Investments 332. Receivables and Payables 353. Capital Assets 354. Deferred Outflows/Inflows of Resources 365. Compensated Absences 376. Long-term Debt and Long-term Obligations 377. Net Position and Fund Balance 38

E. Pension Plan 39II. Reconciliation of Government-wide and Fund Financial Statements

A. Explanation of Certain Differences Between the Governmental FundBalance Sheet and the Government-wide Statement of Net Position 39

B. Explanation of Certain Differences Between the Governmental FundStatement of Revenues, Expenditures, and Changes in Fund Balancesand the Government-wide Statement of Activities 39

III. Stewardship, Compliance, and AccountabilityA. Budgetary Information 40B. Cash Shortages - Prior and Current Years 40

IV. Detailed Notes on All FundsA. Deposits and Investments 41B. Capital Assets 42C. Construction Commitments 44D. Interfund Receivables, Payables, and Transfers 44E. Long-term Debt 45F. Long-term Obligations 47

V. Other InformationA. Risk Management 47B. Contingent Liabilities 49C. Joint Venture 49D. Jointly Governed Organizations 49E. Retirement Commitments 50F. Purchasing Laws 57G. Subsequent Event 58

VI. Other Notes – Discretely Presented Gibson County EmergencyCommunications District 58

GIBSON COUNTY, TENNESSEEIndex of Notes to the Financial Statements

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GIBSON COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended June 30, 2020

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Gibson 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 Gibson County: A. Reporting Entity

Gibson County is a public municipal corporation governed by an elected 25-member board. As required by GAAP, these financial statements present Gibson County (the primary government) and its component unit. The component unit discussed below is included in the county’s reporting entity because of the significance of its operational or financial relationship with the county. Discretely Presented Component Unit – The following entity meets the criteria for a discretely presented component unit of the county. It is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the county. The Gibson County Emergency Communications District provides a simplified means of securing emergency services through a uniform emergency number for the residents of Gibson County, and the Gibson County Commission appoints its governing body. The district is funded primarily through a service charge levied on telephone services. Before the issuance of most debt instruments, the district must obtain the county commission’s approval. The Gibson County Emergency Communications District issues separate financial statements from those of the county and is published as a separate report. Complete financial statements of the Gibson County Emergency Communications District can be obtained from its administrative office at the following address:

Administrative Office: Gibson County Emergency Communications District

P.O. Box 146 Dyer, TN 38330

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Related Organization – The Industrial Development Board of Gibson County is a related organization of Gibson County. The mayors of Gibson County and the cities of Bradford, Dyer, Gibson, Humboldt, Kenton, Medina, Milan, Rutherford, Trenton, and Yorkville designate one person to serve on the 11-member board. The Gibson County Commission confirms the board members, but the county’s accountability for the organization does not extend beyond making the appointments.

B. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government and its component unit. 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 Gibson County does not have any business-type activities to report. Likewise, the primary government is reported separately from the legally separate component unit for which the primary government is financially accountable. 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. Separate financial statements are provided for governmental funds and fiduciary funds. 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 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

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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 Gibson 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. Funds are organized into three major categories: governmental, proprietary, and fiduciary. However, Gibson County has no proprietary funds to report. An emphasis is placed on major funds within the governmental category. Separate financial statements are provided for governmental funds and fiduciary funds. Major individual governmental funds are reported as separate columns in the fund financial statements. All other governmental funds are aggregated into a single column on the fund financial statements. Fiduciary funds in total are reported in a single column. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they become both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the county considers revenues other than grants to be available if they are collected within 30 days after year-end. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met and the revenues are available. Gibson County considers grants and similar revenues to be available if they are collected within 60 days after year-end. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Principal and interest on long-term debt are recognized as fund liabilities when due or when amounts have been accumulated in the General Debt Service Fund for payments to be made early in the following year. Property taxes for the period levied, in-lieu-of tax payments, sales taxes, interest, and miscellaneous taxes are all considered to be susceptible to accrual and have been recognized as revenues of the current period. Applicable business taxes, litigation taxes, state-shared excise taxes, fines, forfeitures, and penalties are not susceptible to accrual since they are not measurable (reasonably estimable). All other revenue items are considered to be measurable and available only when the county receives cash. 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.

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Gibson 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 resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds.

Additionally, Gibson County reports the following fund types: Capital Projects Fund – The General Capital Projects fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities. 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 Gibson County, special school districts’ share of educational revenues, 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.

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.

D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 1. Deposits and Investments

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; the State Treasurer’s Intermediate Term Investment Fund; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of

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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 Gibson 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. Most income from these pooled investments is assigned to the General Debt Service Fund. Gibson County has 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 Pool complied with accounting principles generally accepted in the United State of America. Investments in the State Treasurer’s Intermediate Term Investment Fund are reported at amortized cost using a floating net asset value. The primary oversight responsibility for the investments and operations of the State Treasurer’s Intermediate Term Investment Fund 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 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 Intermediate Term Investment Fund complied with accounting principles generally accepted in the United State of America. Gibson County had no investments in the State Treasurer’s Intermediate Term Investment Fund during the year. No investments required to be reported at fair value were held at the balance sheet date.

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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 ambulance and property taxes receivables are shown with an allowance for uncollectibles. Ambulance receivables allowance for uncollectibles is based on historical collection data. The allowance for uncollectible property taxes is equal to 1.28 percent of total taxes levied. Property taxes receivable are recognized as of the date an enforceable legal claim to the taxable property arises. This date is January 1 and is referred to as the lien date. However, revenues from property taxes are recognized in the period for which the taxes are levied, which is the ensuing fiscal year. Since the receivable is recognized before the period of revenue recognition, the entire amount of the receivable, less an estimated allowance for uncollectible taxes, is reported as a deferred inflow of resources as of June 30. Property taxes receivable are also reported as of June 30 for the taxes that are levied, collected, and reported as revenue during the current fiscal year. These property taxes receivable are presented on the balance sheet as a deferred inflow of resources to reflect amounts not available as of June 30. Property taxes collected within 30 days of year-end are considered available and accrued. The allowance for uncollectible taxes represents the estimated amount of the receivable that will be filed in court for collection. Delinquent taxes filed in court for collection are not included in taxes receivable since they are neither measurable nor available. Property taxes are levied as of the first Monday in October. Taxes become delinquent and begin accumulating interest and penalty the following March 1. Suit must be filed in Chancery Court between the following February 1 to April 1 for any remaining unpaid taxes. Additional costs attach to delinquent taxes after a court suit has been filed.

3. Capital Assets Governmental funds do not capitalize the cost of capital outlays; these funds report capital outlays as expenditures upon acquisition. Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, and similar items), are reported in the governmental column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of $15,000 or more and an estimated useful life of more than five years. Such assets are recorded at historical

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

Assets Years

Building and Improvements 50Other Capital Assets 5 - 10Infrastructure: Roads 20 Bridges 15 - 30

4. Deferred Outflows/Inflows of Resources

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

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5. Compensated Absences It is the general policy of Gibson County, with the exception of the highway department, not to allow an employee’s unused vacation benefits to be carried over from year to year without the written permission of the employee’s supervisor or department head. It is the county highway department’s policy to permit full-time employees to accumulate a limited amount of earned but unused vacation benefits, which will be paid to employees upon separation from service. Vacation benefits for the highway department are accrued when incurred in the government-wide financial statements for the county. A liability for vacation benefits is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

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

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7. Net Position and Fund Balance In the government-wide 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.

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:

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 shall remain binding unless removed in the same manner.

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Assigned Fund Balance – includes amounts that are constrained by the county’s intent to be used for specific purposes but are neither restricted nor committed (excluding stabilization arrangements). The county commission has authorized the county’s budget committee to make assignments for the general government. Unassigned Fund Balance – the residual classification of the General Fund. 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 Fund.

E. Pension Plan

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

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 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.

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 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.

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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, and the General Capital Projects Fund, which adopts project length budgets. 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/Executive, 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 the GAAP basis is presented on the face of each budgetary schedule. At June 30, 2020, Gibson County had outstanding encumbrances in the General and Highway/Public Works funds totaling $12,014 and $1,939,949, respectively.

B. Cash Shortages – Prior and Current Years On December 1, 2015, an investigative report by the Comptroller’s Division of Investigations, revealed that for the period July 1, 2013, through October 16, 2014, the sheriff’s department had a cash shortage of at least $109,429 as a result of numerous irregularities. On November 30, 2015, the Gibson County Grand Jury returned indictments on former Sheriff Chuck Arnold and several of his former employees on numerous charges including official misconduct, theft, and forgery. Three employees subsequently pled guilty to various charges and have been ordered to pay restitution totaling $6,589. On October 21, 2016, the former sheriff and several former employees were ordered to pay restitution totaling $62,395. County officials continue to pursue collection of the remaining shortage. As of June 30, 2020, the cash shortage outstanding

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totaled $74,261, which included the General ($73,577) and Drug Control ($684) funds. The Office of County Mayor has cash shortages of $3,939 and $5,397 as of June 30, 2020. The county mayor and county attorney are taking action to collect these cash shortages. Details of these cash shortages are discussed in the Schedule of Findings and Questions Costs section of this report.

IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments

Gibson County participates in an internal cash and investment pool through the Office of Trustee. The county trustee is the treasurer of the county and in this capacity is responsible for receiving, disbursing, and investing most county funds. Each fund’s portion of this pool is displayed on the balance sheets or statements of net position as Equity in Pooled Cash and Investments. Cash reflected on the balance sheets or statements of net position represents nonpooled amounts held separately by individual funds. Deposits Legal Provisions. All deposits with financial institutions must be secured by one of two methods. One method involves financial institutions that participate in the bank collateral pool administered by the state treasurer. Participating banks determine the aggregate balance of their public fund accounts for the State of Tennessee and its political subdivisions. The amount of collateral required to secure these public deposits must equal at least 105 percent of the average daily balance of public deposits held. Collateral securities required to be pledged by the participating banks to protect their public fund accounts are pledged to the state treasurer on behalf of the bank collateral pool. The securities pledged to protect these accounts are pledged in 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.

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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, the State Treasurer’s Intermediate Term Investment Fund, 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. The primary oversight responsibility for the investments and operations of the Intermediate Term Investment Fund 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 Intermediate Term Investment Fund are reported both by the pool and the county at amortized cost using a floating 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. The county had no pooled and nonpooled investments as of June 30, 2020.

B. Capital Assets Capital assets activity for the year ended June 30, 2020, was as follows:

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Governmental Activities:Balance Balance7-1-19 Increases Decreases 6-30-20

Capital Assets Not Depreciated:Land $ 5,313,966 $ 0 $ 0 $ 5,313,966Construction in Progress 209,345 649,251 (124,491) 734,105Total Capital Assets Not Depreciated $ 5,523,311 $ 649,251 $ (124,491) $ 6,048,071

Capital Assets Depreciated:Buildings and Improvements $ 17,191,176 $ 35,387 $ 0 $ 17,226,563Infrastructure 39,530,920 2,648,947 0 42,179,867Other Capital Assets 14,648,180 1,827,432 (186,916) 16,288,696Total Capital Assets Depreciated $ 71,370,276 $ 4,511,766 $ (186,916) $ 75,695,126

Less Accumulated Depreciation For:Buildings and Improvements $ 4,707,931 $ 340,700 $ 0 $ 5,048,631Infrastructure 24,324,754 1,264,996 0 25,589,750Other Capital Assets 10,366,451 1,511,132 (186,916) 11,690,667Total Accumulated Depreciation $ 39,399,136 $ 3,116,828 $ (186,916) $ 42,329,048

Total Capital Assets Depreciated, Net $ 31,971,140 $ 1,394,938 $ 0 $ 33,366,078

Governmental Activities Capital Assets, Net $ 37,494,451 $ 2,044,189 $ (124,491) $ 39,414,149

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

General Government $ 176,908Finance 1,327Administration of Justice 84,158Public Safety 827,780Public Health and Welfare 379,050Social, Cultural, and Recreational Services 6,310Agriculture and Natural Resources 3,484Other Operations 96,068Highway/Public Works 1,541,743

Total Depreciation Expense - Governmental Activities $ 3,116,828

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C. Construction Commitments At June 30, 2020, the highway department had uncompleted construction contracts of approximately $987,012 for bridge construction and $893,601 for a paving project. Funding for these future expenditures is expected to be received from state grants.

D. Interfund Receivables, Payables, and Transfers The composition of interfund balances as of June 30, 2020, was as follows:

Due to/from Other Funds:

Receivable Fund Payable Fund Amount

General Highway/Public Works $ 87,800" Nonmajor governmental 19,518Nonmajor governmental General 6,887 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. Receivables in the General Fund totaling $17,878 and $87,800 were in transit from the Solid Waste/Sanitation and Highway/Public Works funds, respectively, at June 30, 2020. Interfund Transfers: Interfund transfers for the year ended June 30, 2020, consisted of the following amounts:

Transfer Out Purpose

General Fund $ 936,600 Capital Expenditures

Total $ 936,600

Transfer InNonmajor

GovernmentalFund

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

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E. Long-term Debt General Obligation Bonds Gibson County issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. 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 were issued for original terms of up to 16 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, 2020, will be retired from the General Debt Service Fund. General obligation bonds outstanding as of June 30, 2020, for governmental activities are as follows:

OriginalInterest Final Amount Balance

Type Rate Maturity of Issue 6-30-20

General Obligation Bonds - Refunding 1.45 to 5 % 6-1-33 $ 11,465,000 $ 11,335,000

The annual requirements to amortize all general obligation bonds outstanding as of June 30, 2020, including interest payments, are presented in the following tables: Year Ending BondsJune 30 Principal Interest Total

2021 $ 870,000 $ 391,861 $ 1,261,8612022 850,000 375,600 1,225,6002023 855,000 335,763 1,190,7632024 845,000 293,900 1,138,9002025 855,000 253,150 1,108,1502026-2030 4,510,000 724,862 5,234,8622031-2033 2,550,000 131,750 2,681,750

Total $ 11,335,000 $ 2,506,886 $ 13,841,886

There is $1,852,516 available in the General Debt Service Fund to service long-term debt. Bonded debt per capita totaled $228, based on the 2010 federal census. Total debt per capita, including bonds and unamortized debt premiums, totaled $251, based on the 2010 federal census.

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Changes in Long-term Debt Long-term debt activity for the year ended June 30, 2020, was as follows: Governmental Activities:

Balance, July 1, 2019 $ 13,335,000Additions 7,175,000Reductions (9,175,000)

Balance, June 30, 2020 $ 11,335,000

Balance Due Within One Year $ 870,000

Bonds

Analysis of Noncurrent Liabilities for Debt Presented on Exhibit A:

Total Noncurrent Liabilities - Debt, June 30, 2020 $ 11,335,000Less: Balance Due Within One Year - Debt (870,000)Add: Unamortized Premium on Debt 1,130,457 Noncurrent Liabilities - Due in More Than One Year - Debt - Exhibit A $ 11,595,457

Current Refunding On June 30, 2020, Gibson County refunded one refunding bond issue and two general obligation bond issues with a separate general obligation bond issue. The county issued $7,175,000 of general obligation refunding bonds to provide resources to purchase U.S. government securities that were placed in an irrevocable trust to general resources for all future debt service payments of the refunded debt. As a result, the refunded bonds are considered defeased, and the liability has been removed from the county’s long-term debt. Because of this current refunding, total debt service payments over the next ten years will be reduced by $484,464, and an economic gain (difference between the present value of the debt service payments of the refunded and refunding bonds) of $457,539 was obtained.

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F. Long-term Obligations

Changes in Long-term Obligations Long-term obligations activity for the year ended June 30, 2020, was as follows: Governmental Activities:

Balance, July 1, 2019 $ 31,338Additions 43,985Reductions (44,537)

Balance, June 30, 2020 $ 30,786

Balance Due Within One Year $ 1,540

CompensatedAbsences

Analysis of Other Noncurrent Liabilities Presented on Exhibit A:

Total Other Noncurrent Liabilities, June 30, 2020 $ 30,786Less: Balance Due Within One Year - Other (1,540) Noncurrent Liabilities - Due in More Than One Year - Other - Exhibit A $ 29,246

Compensated absences will be paid from the Highway/Public Works Fund.

V. OTHER INFORMATION A. Risk Management

Employee Health Insurance Gibson County has chosen to become self-insured for risks associated with the employees’ health insurance plan. This activity is currently being accounted for in the General, Solid Waste/Sanitation, and Highway/Public Works funds. The county retains the risk of loss to a limit of $70,000 per specific loss and approximately $1,300,000 overall. The county obtained an excess risk insurance policy to cover claims beyond any amounts exceeding these limits. The premiums for the excess risk insurance and administration fees are paid directly to the administrator of the county’s employee insurance plan by the General, Solid Waste/Sanitation, and Highway/Public Works funds. All full-time employees of Gibson County are eligible to participate. In November 2011, the county adopted a resolution providing that retirees are

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not allowed to remain in the employee health insurance program. The premium charges are based on the rates paid for coverage under the previous health insurance plan. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Claims liabilities are established based on estimates of the ultimate cost of claims that have been reported but not settled and of claims that have been incurred but not reported. Claims liabilities include incremental claim adjustment expenditures/expenses, if any. In addition, estimated recoveries, if any, on settled claims have been deducted from the liability for unpaid claims. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past three fiscal years are as follows:

Beginning of CurrentFiscal Year Balance Year Claims and at Fiscal

Liability Estimates Payments Year-End

2017-18 $ 0 $ 979,561 $ 979,561 $ 02018-19 0 1,213,177 1,213,177 02019-20 0 1,391,137 1,391,137 0

Workers’ Compensation Insurance Gibson County participates in the Local Government Workers’ Compensation Fund (LGWCF), a public entity risk pool established under provisions of Section 29-20-401, Tennessee Code Annotated, by the Tennessee County Services Association to provide a program of workers’ compensation coverage to employees of local governments. The county pays an annual premium to the LGWCF for its workers’ compensation insurance coverage. The LGWCF is to be self-sustaining through member premiums. The LGWCF reinsures through commercial insurance companies for claims exceeding $300,000. Liability, Property, and Casualty The county is exposed to various risks related to general liability, property, and casualty losses. The county participates in the Local Government Property and Casualty Fund (LGPCF), which is a public entity risk pool established by the Tennessee County Services Association, an association of member counties. The county pays an annual premium to the LGPCF for its general liability, property, and casualty insurance coverage. The creation of the LGPCF provides for it to be self-sustaining through member premiums. The LGPCF reinsures through commercial insurance companies for claims exceeding $100,000 for each insured event.

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B. Contingent Liabilities The county attorney and management were not aware of any potential claims that were pending, which would materially affect the county’s financial statements.

C. Joint Venture The Twenty-eighth Judicial District Drug Task Force (DTF) is participating in a joint venture formed by an interlocal agreement between the district attorney generals of the Twenty-eighth Judicial District, the Twenty-ninth Judicial District, the Thirtieth Judicial District, the Gibson County Sheriff’s Department, and the West Tennessee Judicial Violent Crime and Drug Task Force (WTJDTF). The purpose of the entity is to provide multi-jurisdictional law enforcement to promote the investigation and prosecution of drug-related activities and highway criminal interdiction. Funds for the operations of the entity come primarily from federal grants, fines, and the forfeiture of assets to the entity. Gibson County made no contributions to the WTJDTF for the year ended June 30, 2020. Gibson County does not have an equity interest in the above-noted joint venture. Complete financial statements for the DTF can be obtained from its administrative office at the following addresses:

Administrative Office:

Office of District Attorney General Twenty-eighth Judicial District P.O. Box 145 Trenton, TN 38382

D. Jointly Governed Organizations

The Gibson County Railroad Authority (GCRA) was created by the county in conjunction with Madison County and the cities of Trenton, Humboldt, Dyer, Rutherford, and Kenton. The GCRA’s board includes the mayors of Gibson and Madison counties; the city mayors of Trenton, Humboldt, Dyer, Rutherford, and Kenton; and one at-large member from each of these areas. However, the counties and cities do not have any ongoing financial interest or responsibility for the entity. The West Tennessee Railroad Authority (WTRA) was created by Gibson County in conjunction with the counties of Chester, Madison, McNairy, Obion, and Weakley. The WTRA’s board includes the mayors of Chester, Gibson, Madison, McNairy, Obion, and Weakley counties, and one at-large member from each of these areas. However, the counties do not have any ongoing financial interest or responsibility for the entity.

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E. Retirement Commitments Tennessee Consolidated Retirement System (TCRS) General Information About the Pension Plan Plan Description. Employees of Gibson County are provided a defined benefit pension plan (Gibson County Employees Plan) through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. In addition, certain former county employees are provided a defined benefit pension plan (Gibson County Board of Education Plan) through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The Gibson County Board of Education Plan is closed to new membership. The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at https://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.

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

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

Employees Covered by Benefit Terms. At the measurement date of June 30, 2019, the following employees were covered by the benefit terms: Gibson County Employees: Inactive Employees or Beneficiaries Currently Receiving Benefits 134Inactive Employees Entitled to But Not Yet Receiving Benefits 208Active Employees 247

Total 589

Gibson County Board of Education: Inactive Employees or Beneficiaries Currently Receiving Benefits 33Inactive Employees Entitled to But Not Yet Receiving Benefits 4Active Employees 0

Total 37

Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees contribute five percent of salary. Gibson 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, 2020, the employer contribution for the Gibson County Employees Plan was $853,564 based on a rate of 8.24 percent of covered payroll. At the measurement date of June 30, 2019, the Gibson County Board of Education Plan was fully funded; therefore, no additional employer contributions will be required. By law, employer contributions are required to be paid. The TCRS may intercept Gibson 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) Gibson County’s net pension liability (asset) was measured as of June 30, 2019, and the total pension liability (asset) used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date.

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Actuarial Assumptions. The total pension liability as of the June 30, 2019, 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, 2019, 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 assumes that employee contributions will be made at the current rate and that contributions from Gibson County will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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Changes in the Net Pension Liability (Asset) Gibson County Employees:

Total Plan Net PensionPension Fiduciary LiabilityLiability Net Position (Asset)

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

Balance, July 1, 2018 $ 27,275,779 $ 29,507,040 $ (2,231,261)

Changes for the Year: Service Cost $ 763,917 $ 0 $ 763,917 Interest 1,984,565 0 1,984,565 Differences Between Expected and Actual Experience (99,407) 0 (99,407) Contributions-Employer 0 808,498 (808,498) Contributions-Employees 0 490,734 (490,734) Net Investment Income 0 2,195,037 (2,195,037) Benefit Payments, Including Refunds of Employee Contributions (1,332,779) (1,332,779) 0 Administrative Expense 0 (21,447) 21,447Net Changes $ 1,316,296 $ 2,140,043 $ (823,747)

Balance, June 30, 2019 $ 28,592,075 $ 31,647,083 $ (3,055,008)

Increase (Decrease)

Gibson County Board of Education:


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

Balance, July 1, 2018 $ 422,349 $ 613,803 $ (191,454)

Changes for the Year: Service Cost $ 610 $ 0 $ 610 Interest 28,754 0 28,754 Differences Between Expected and Actual Experience (28,800) 0 (28,800) Net Investment Income 0 43,741 (43,741) Benefit Payments, Including Refunds of Employee Contributions (52,705) (52,705) 0Net Changes $ (52,141) $ (8,964) $ (43,177)

Balance, June 30, 2019 $ 370,208 $ 604,839 $ (234,631)

Increase (Decrease)

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

Current1% Discount 1%

Decrease Rate IncreaseGibson County Employees: 6.25% 7.25% 8.25%

Net Pension Liability (Asset) $ 555,038 $ (3,055,008) $ (6,060,624)


Gibson County Decrease Rate Increase Board of Education: 6.25% 7.25% 8.25%

Net Pension Liability (Asset) $ (213,086) $ (234,631) $ (254,034)

Pension Expense (Negative Pension Expense) and Deferred Outflows of Resources and Deferred Inflows of Resources to Pensions Pension Expense (Negative Pension Expense). For the year ended June 30, 2020, the Gibson County Employee Plan and the Gibson County Board of Education Plan recognized (negative) pension expense of $99,980 and ($38,125), respectively. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2020, Gibson County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

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Gibson County Employees:

Deferred DeferredOutflows Inflows

of of Resources Resources

Difference Between Expected and Actual Experience $ 187,064 $ 755,695Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 360,067Changes in Assumptions 343,506 0Contributions Subsequent to the Measurement Date of June 30, 2019 (1) 853,564 N/A

Total $ 1,384,134 $ 1,115,762


DeferredInflows

of Resources

Net Difference Between Projected and Actual Earnings on Pension Plan Investments $ 7,956Contributions Subsequent to the Measurement Date of June 30, 2019 (1) N/A

Total $ 7,956

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

Measurement Date of June 30, 2019,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period.

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

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Gibson County Employees: Year EndingJune 30 Amount2021 $ (90,725)2022 (278,838)2023 (184,190)2024 (31,439)2025 0Thereafter 0 Gibson County Board of Education:

Year EndingJune 30 Amount2021 $ (579)2022 (5,673)2023 (1,473)2024 (231)2025 0Thereafter 0

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

F. Purchasing Laws

Office of County Mayor The County Purchasing Law of 1983, Sections 5-14-201 through 5-14-206, Tennessee Code Annotated (TCA), govern purchasing for the general county government. This act provides for all purchases exceeding $10,000 (excluding emergency purchases) to be made based on competitive bids solicited through newspaper advertisement.

Office of Road Supervisor Chapter 111, Private Acts of 1929, as amended, and Section 54-7-113, TCA, (Uniform Road Law), govern purchasing procedures for the highway department. These statutes require all purchases exceeding $10,000 to be made on the basis of publicly advertised competitive bids.

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G. Subsequent Event On July 31, 2020, Shonna Smith left the Trenton Office of Clerk and Master and was succeeded by Kayla Orgain effective September 1, 2020.

VI. OTHER NOTES – DISCRETELY PRESENTED GIBSON COUNTY EMERGENCY COMMUNICATIONS DISTRICT

A. Significant Accounting Policies

1. Organization and Reporting Entity

The Gibson County Emergency Communications District (a discretely presented component unit of Gibson County, Tennessee) was established by voter referendum in May 1987, and the assessment of service fees began October 1, 1987. The local emergency telephone service to residents of Gibson County began July 1, 1989. The purpose of the district is to provide a simplified means of securing emergency services by telephone to those persons living in Gibson County, Tennessee. The district is considered a component unit of the county because the Board of Directors of the district is appointed by the county commission. The county commission must approve any debt issued by the district.

2. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The district is accounted for as a single enterprise fund as prescribed by the state. Enterprise funds are a type of proprietary fund, and as such, are reported in accordance with generally accepted accounting principles for proprietary funds as defined by the Governmental Accounting Standards Board. Proprietary fund types are reported using the economic resources measurement focus and the accrual basis of accounting. The aim of this measurement focus is to report all inflows, outflows, and balances affecting or reflecting the entities net position. The accrual basis of accounting recognizes income as it is earned and expenses as they are incurred, whether or not cash is received or paid out at that time. Operating revenues in proprietary funds are those revenues generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. The state has defined grants and reimbursements from the Tennessee Emergency Communications Board to be nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

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3. Assets, Liabilities, and Net Position a. Deposits and Investments

Cash and cash equivalents are considered to be demand deposits and other deposits with original maturities of three months or less and are included in the caption cash and cash equivalents. State statutes allow investments in obligations of the U.S. Treasury, agencies, instrumentalities and obligations guaranteed as to principal and interest of the United States or any of its agencies, repurchase agreements, the Tennessee Local Government Investment Pool, and certificates of deposit.

b. Accounts Receivable Accounts receivable represent amounts due from local customers for dispatch services. The district doesn’t have an allowance due to all accounts receivable being fully collectible.

c. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the financial statements.

d. Capital Assets and Depreciation Capital assets are stated at original cost. Maintenance repairs and minor renewals are expensed as incurred. The original cost is deducted when items are retired. Depreciation has been provided over the estimated useful lives of the property and equipment by the straight-line method. Capitalization thresholds and estimated useful lives are as follows: Assets Years

Equipment 5 - 20 $ 2,500Office Equipment 3 - 10 1,000Furniture and Fixtures 5 - 10 1,000Vehicles 5 5,000Building 30 10,000

Threshold

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e. Compensated Absences Employees who have completed one year of service shall receive one week of vacation time. Employees who have completed two years of service shall receive two weeks of vacation time. Employees who have completed ten years of service shall receive three weeks of vacation time. Employees who have completed 20 years of service shall receive four weeks of vacation time. The employee is limited to accumulating up to two weeks of leave per year to be taken in pay and cannot carry any unused vacation leave at December 31 over to the next calendar year. At June 30, 2020, the liability for accrued leave was $5,537.

f. Deferred Outflows/Inflows of Resources In addition to assets, the Statement of Net Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. As of June 30, 2020, the district has three items that are reported as deferred outflows of resources: pension contributions subsequent to the measurement date, changes in assumption, and difference between expected and actual experience. 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 acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. As of June 30, 2020, the district has two items that are reported as deferred inflows of resources: pensions – difference between expected and actual experience and difference between projected and actual earnings on pension plan investments.

g. Net Position Flow Assumption Sometimes the district will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the district’s policy to consider restricted net position to have been depleted before unrestricted net position is applied.

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h. Net Position Equity is reported as net position, which is classified into the following components as applicable:

• Net investment in capital assets – consists of capital

assets, net of accumulated depreciation and reduced by the outstanding balances of any payables that are attributable to the acquisition, construction, or improvement of those assets. When no payables are associated, it is referred to as investment in capital assets.

• Restricted – net position when constraints are placed on their use by external third parties or imposed by law.

• Unrestricted – all other net position that does not meet the definition of the other categories.

i. Revenues

The district receives remittances from the State of Tennessee representing fees that have been collected on behalf of the district for 911 services. These fees are remitted to the district on a monthly or bi-monthly schedule. Fees collected for 911 services are considered operating revenues.

j. 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 Gibson County Emergency Communications District's participation in the Public Employee Retirement Plan of the Tennessee Consolidated Retirement System (TCRS), and additions to/deductions from the district's fiduciary net position have been determined on the same basis as they are reported by the TCRS for the Public Employee Retirement Plan. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of the Public Employee Retirement Plan of TCRS. Investments are reported at fair value.

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B. Stewardship, Compliance, and Accountability Budgetary Compliance The district adopts a budget in accordance with the requirements of the Tennessee Emergency Communications Board and Tennessee Code Annotated, Section 7-86-120. This budget is adopted on an accrual basis of accounting, which is in accordance with generally accepted accounting principles. Expenditures are required to be within budgetary limits at the line-item level of control. For the year ended June 30, 2020, there were five line-items that exceeded the budgeted amounts: maintenance contracts, retirement, direct deposit fee, utilities-water, and utilities-telephone. Maintenance contract expense overage of $9,005 was due to an error on behalf of the vendor that caused untimely billing of the contract. Retirement expense overage of $30,295 was due to additional expenses resulting from pension related adjustments. Direct deposit fee exceeded budgeted amount by $37. Water and telephone utilities exceeded budgeted amounts by $8 and $349, respectively.

C. Detailed Notes on Accounts 1. Deposits and Investments

The district’s policies limit deposits and investments to those instruments allowed by applicable state laws and are described below. State statute requires that all deposits with financial institutions must be collateralized by securities whose market value is equal to 105 percent of the value of uninsured deposits. The deposits must be collateralized by federal depository insurance or the Tennessee Bank Collateral Pool, by collateral held by the district’s agent in the district’s name, or by the Federal Reserve Banks acting as third-party agents. State statutes also authorize the district to invest in bonds, notes, or treasury bills of the United States or any of its agencies, certificates of deposit at Tennessee state chartered banks and savings and loan associations and federally chartered banks and savings and loan associations, repurchase agreements utilizing obligations of the United States or its agencies as the underlying securities, and the state pooled investment fund. Statutes also require that securities underlying repurchase agreements must have a market value of at least equal to the amount of funds invested in the repurchase transaction. As of June 30, 2020, all bank deposits were fully collateralized or insured.

2. Unearned Revenue The district received $700,000 from Gibson County in May 2001, which represented advance payments of dispatch fees for the period May 2001 through April 2026. Revenue of $2,333 will be recognized each month during the life of the contract.

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3. Capital Assets A summary of capital assets activity for the year is as follows:

Balance Balance7-1-19 Increases 6-30-20

Capital Assets Not Depreciated:Land $ 66,400 $ 0 $ 66,400

Capital Assets Depreciated:Buildings and Improvements $ 769,412 $ 0 $ 769,412Office Equipment 104,452 4,346 108,798Communications Equipment 923,209 0 923,209Furniture and Fixtures 10,175 0 10,175Vehicles 18,427 0 18,427Total Capital Assets Depreciated: $ 1,825,675 $ 4,346 $ 1,830,021

Less: Accumulated Depreciation For:Buildings and Improvements $ 456,761 $ 23,913 $ 480,674Office Equipment 104,336 322 104,658Communications Equipment 674,215 79,451 753,666Furniture and Fixtures 424 1,696 2,120Vehicles 18,427 0 18,427Total AccumulatedDeprecation $ 1,254,163 $ 105,382 $ 1,359,545

Capital Assets, Net $ 637,912 $ (101,036) $ 536,876

D. Other Information

1. Funding Sources Funding for the district’s operations is provided by monthly fees from service users in Gibson County, which are collected by the Tennessee Emergency Communications Board and remitted to the district at a set percentage.

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2. Retirement Plan Plan Description Employees of the Gibson County Emergency Communications District are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the Tennessee Consolidated Retirement System (TCRS). The TCRS was created by state statute under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publicly available financial report that can be obtained at https://treasury.tn.gov/Retirement/BoardandGovernance/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, 2019, the following employees were covered by the benefit terms:

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https://treasury.tn.gov/Retirement/BoardandGovernance/Reporting-and-Investment-Policies

https://treasury.tn.gov/Retirement/BoardandGovernance/Reporting-and-Investment-Policies

Inactive Employees or Beneficiaries Currently Receiving Benefits 4Inactive Employees Entitled to But Not Yet Receiving Benefits 12Active Employees 9

Total 25

Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees of the district do not contribute any percentage of their salary. The district makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2020, employer contributions for Gibson County Emergency Communications District were $47,441 based on a rate of 11.25 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept Gibson County Emergency Communications District's state shared taxes if required employer contributions are not remitted. The employer's actuarially determined contribution 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 Gibson County Emergency Communications District’s net pension liability (asset) was measured as of June 30, 2019, and the total pension liability used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability as of the June 30, 2019, 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


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Mortality rates were based on actual experience including an adjustment for some anticipated improvement. The actuarial assumptions used in the June 30, 2019, 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 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 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 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.

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Discount Rate. The discount rate used to measure the total pension liability was 7.25 percent. The projection of cash flows used to determine the discount rate assumes that employee contributions will be made at the current rate and that contributions from 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. Changes in the Net Pension Liability (Asset)


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

Balance, July 1, 2018 $ 1,345,599 $ 1,354,553 $ (8,954)

Changes for the year: Service Cost $ 44,753 $ 0 $ 44,753 Interest 98,470 0 98,470 Differences Between Expected and Actual Experience 32,975 0 32,975 Contributions-Employer 0 31,955 (31,955) Net Investment Income 0 99,626 (99,626) Benefit Payments, Including Refunds of Employee Contributions (64,293) (64,293) 0 Administrative Expense 0 (786) 786Net Changes $ 111,905 $ 66,502 $ 45,403

Balance, June 30, 2019 $ 1,457,504 $ 1,421,055 $ 36,449

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 one percentage point lower (6.25 percent) or one percentage point higher (8.25 percent) than the current rate:

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Gibson County Emergency Decrease Rate IncreaseCommunications District 6.25% 7.25% 8.25%

Net Pension Liability (Asset) $ 214,712 $ 36,449 $ 113,756

Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension Expense. For the year ended June 30, 2020, the district recognized pension expense of $77,726. Deferred Outflows of Resources and Deferred Inflows of Resources. For the year ended June 30, 2020, 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

Differences Between Expected and Actual Experience $ 190,836 $ 69,646Net Difference Between Projected and Actual Earnings on Pension Plan Investments 0 16,842Changes in Assumptions 19,807 0Contributions Subsequent to the Measurement Date of June 30, 2019 (1) 47,441 N/A

Total $ 258,084 $ 86,488

(1) The amount shown above for “Contributions Subsequent to the Measurement Date of June 30, 2019,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period. Amounts reported as deferred outflows of resources, with the exception of contributions after the measurement date, and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

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Year EndingJune 30 Amount

2021 $ 21,9442022 11,7622023 25,3942024 28,0202025 32,319Thereafter 4,716

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

3. Commitments The district currently leases Zetron equipment and software. This lease

has been classified as an operating lease for reporting purposes. The lease began in October 2018 and is scheduled to continue for 60 months with monthly payments of $4,333. Future minimum lease payments are as follows:

For the Year Ended Amount

2021 $ 52,000 2022 52,000 2023 52,000 2024 13,000

Total 169,000

4. Risk Management The district is exposed to various risks of loss related to tort, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The district decided it was more economically feasible to join a public entity risk pool as opposed to purchasing commercial insurance for general liability, auto liability, errors and omissions, workers compensation and automobile physical damage coverage. The district joined the Tennessee Municipal League Risk Pool, which is a public entity risk pool established in 1979 by the Tennessee Municipal League.

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The district pays annual premiums to the pool for its general liability, auto liability, real and personal property damage, workman’s compensation, and errors and omissions policies. The pool provides the specified coverage and pays all claims from its member premiums charged or through its reinsurance policies. The district premiums are calculated based on its prior claims’ history. It is the policy of the district to purchase commercial insurance for the risks of employee dishonesty and excess liability. Settled claims have not exceeded this commercial coverage in any of the past three years and there has been no significant reduction in coverage. The COVID-19 pandemic proposes an operational risk to the district. Payroll expenses could potentially increase if the district were to become short-staffed and would need to either hire temporary employees or pay more in overtime expense. The federal government and the State of Tennessee have dedicated funds to mitigate the impact such a scenario may have on an entity.

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REQUIRED SUPPLEMENTARY INFORMATION

71

Exhibit E-1

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

2014 2015 2016 2017 2018 2019

Total Pension LiabilityService Cost $ 639,578 $ 619,501 $ 636,715 $ 718,592 $ 776,976 $ 763,917Interest 1,687,432 1,695,891 1,752,633 1,877,560 1,932,026 1,984,565Differences Between Actual and Expected Experience (965,043) (275,449) 561,196 (381,954) (732,139) (99,407)Changes in Assumptions 0 0 0 687,012 0 0Benefit Payments, Including Refunds of Employee Contributions (1,045,803) (1,412,416) (1,188,777) (1,544,678) (1,145,492) (1,332,779)Net Change in Total Pension Liability $ 316,164 $ 627,527 $ 1,761,767 $ 1,356,532 $ 831,371 $ 1,316,296Total Pension Liability, Beginning 22,382,418 22,698,582 23,326,109 25,087,876 26,444,408 27,275,779

Total Pension Liability, Ending (a) $ 22,698,582 $ 23,326,109 $ 25,087,876 $ 26,444,408 $ 27,275,779 $ 28,592,075

Plan Fiduciary Net PositionContributions - Employer $ 481,899 $ 503,674 $ 546,710 $ 766,654 $ 777,187 $ 808,498Contributions - Employee 408,490 403,585 438,069 465,208 471,800 490,734Net Investment Income 3,437,699 733,633 641,505 2,782,339 2,258,449 2,195,037Benefit Payments, Including Refunds of Employee Contributions (1,045,803) (1,412,416) (1,188,777) (1,544,678) (1,145,492) (1,332,779)Administrative Expense (8,836) (10,992) (17,966) (20,815) (22,886) (21,447)Other 0 0 67,964 0 0 0Net Change in Plan Fiduciary Net Position $ 3,273,449 $ 217,484 $ 487,505 $ 2,448,708 $ 2,339,058 $ 2,140,043Plan Fiduciary Net Position, Beginning 20,740,836 24,014,285 24,231,769 24,719,274 27,167,982 29,507,040

Plan Fiduciary Net Position, Ending (b) $ 24,014,285 $ 24,231,769 $ 24,719,274 $ 27,167,982 $ 29,507,040 $ 31,647,083

Net Pension Liability (Asset), Ending (a - b) $ (1,315,703) $ (905,660) $ 368,602 $ (723,574) $ (2,231,261) $ (3,055,008)

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 105.80% 103.88% 98.53% 102.74% 108.18% 110.68%Covered Payroll $ 7,624,991 $ 8,071,700 $ 8,761,372 $ 9,304,054 $ 9,431,889 $ 9,811,876Net Pension Liability (Asset) as a Percentage of Covered Payroll 17.26% 11.22% 4.21% (7.78)% (23.66)% (31.14)%

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

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Exhibit E-2

Gibson County, TennesseeSchedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on Participation in the Public Employee Pension Plan of TCRSGibson County Board of EducationFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018 2019

Total Pension LiabilityService Cost $ 1,488 $ 666 $ 652 $ 659 $ 619 $ 610Interest 46,796 41,117 33,691 30,581 30,005 28,754Differences Between Actual and Expected Experience (50,633) (73,404) (13,231) 7,546 5,270 (28,800)Changes in Assumptions 0 0 0 22,464 0 0Benefit Payments, Including Refunds of Employee Contributions (78,924) (66,177) (68,563) (56,609) (53,581) (52,705)Net Change in Total Pension Liability $ (81,273) $ (97,798) $ (47,451) $ 4,641 $ (17,687) $ (52,141)Total Pension Liability, Beginning 661,917 580,644 482,846 435,395 440,036 422,349

Total Pension Liability, Ending (a) $ 580,644 $ 482,846 $ 435,395 $ 440,036 $ 422,349 $ 370,208

Plan Fiduciary Net PositionContributions - Employer $ 98,988 $ 70,246 $ 70,246 $ 72,662 $ 0 $ 0Contributions - Employee 0 0 0 0 0 0Net Investment Income 70,164 15,611 13,933 62,109 49,098 43,741Benefit Payments, Including Refunds of Employee Contributions (78,924) (66,177) (68,563) (56,609) (53,581) (52,705)Administrative Expense (32) 0 0 0 0 0Net Change in Plan Fiduciary Net Position $ 90,196 $ 19,680 $ 15,616 $ 78,162 $ (4,483) $ (8,964)Plan Fiduciary Net Position, Beginning 414,632 504,828 524,508 540,124 618,286 613,803

Plan Fiduciary Net Position, Ending (b) $ 504,828 $ 524,508 $ 540,124 $ 618,286 $ 613,803 $ 604,839

Net Pension Liability (Asset), Ending (a - b) $ 75,816 $ (41,662) $ (104,729) $ (178,250) $ (191,454) $ (234,631)

Plan Fiduciary Net Position as a Percentage of Total Pension Liability 86.94% 108.63% 124.05% 140.51% 145.33% 163.38%Covered Payroll $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Net Pension Liability (Asset) as a Percentage of Covered Payroll 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%


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Exhibit E-3

Gibson County, TennesseeSchedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRSGibson County EmployeesFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018 2019 2020

Actuarially Determined Contribution $ 481,899 $ 503,674 $ 546,710 $ 580,573 $ 777,187 $ 808,498 $ 853,564Less Contributions in Relation to the Actuarially Determined Contribution (481,899) (503,674) (546,710) (766,654) (777,187) (808,498) (853,564)

Contribution Deficiency (Excess) $ 0 $ 0 $ 0 $ (186,081) $ 0 $ 0 $ 0

Covered Payroll $ 7,624,991 $ 8,071,700 $ 8,761,372 $ 9,304,054 $ 9,431,889 $ 9,811,876 $ 10,358,768

Contributions as a Percentage of Covered Payroll 6.32% 6.24% 6.24% 8.24% 8.24% 8.24% 8.24%


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Exhibit E-4

Gibson County, TennesseeSchedule of Contributions Based on Participation in the Public Employee Pension Plan of TCRSGibson County Board of EducationFor the Fiscal Year Ended June 30

2014 2015 2016 2017 2018 2019 2020

Actuarially Determined Contribution $ 98,988 $ 70,246 $ 70,246 $ 72,662 $ 0 $ 0 $ 0Less Contributions in Relation to the Actuarially Determined Contribution (98,988) (70,246) (70,246) (72,662) 0 0 0

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

Covered Payroll $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Contributions as a Percentage of Covered Payroll N/A N/A N/A N/A N/A N/A N/A

Note: Ten years of data will be presented when available. At June 30, 2017, the Gibson County Board of EducationPlan was fully funded; therefore, no additional employer contributions were required.

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GIBSON COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION


TENNESSEE CONSOLIDATED RETIREMENT SYSTEM Valuation Date: Actuarially determined contribution rates for fiscal year 2020 were calculated based on the June 30, 2018, actuarial valuation. Methods and assumptions used to determine contribution rates:

Gibson County Employees:

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


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.

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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

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COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

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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 specific purposes other than debt service and capital projects.

____________________________ Solid Waste/Sanitation Fund – The Solid Waste/Sanitation Fund is used to account for Gibson County’s waste tire operations. Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. Constitutional Officers - Fees Fund – The Constitutional Officers - Fees Fund is used to account for operating expenses paid directly from the fee and commission accounts of the trustee, clerks, register of deeds, and sheriff.

Capital Projects Fund

_______________________________________ 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.

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Exhibit F-1

Gibson County, TennesseeCombining Balance SheetNonmajor Governmental FundsJune 30, 2020

Constitu - TotalSolid tional General Nonmajor

Waste / Drug Officers - Capital GovernmentalSanitation Control Fees Total Projects Funds

ASSETS

Cash $ 0 $ 0 $ 1,640 $ 1,640 $ 0 $ 1,640Equity in Pooled Cash and Investments 119,040 45,146 0 164,186 307,681 471,867Due from Other Funds 0 316 0 316 6,571 6,887Cash Shortage 0 684 0 684 0 684

Total Assets $ 119,040 $ 46,146 $ 1,640 $ 166,826 $ 314,252 $ 481,078

LIABILITIES

Due to Other Funds $ 0 $ 0 $ 1,640 $ 1,640 $ 0 $ 1,640Total Liabilities $ 0 $ 0 $ 1,640 $ 1,640 $ 0 $ 1,640

FUND BALANCES

Restricted:Restricted for Public Safety $ 0 $ 46,146 $ 0 $ 46,146 $ 0 $ 46,146

Committed:Committed for Public Health and Welfare 119,040 0 0 119,040 0 119,040Committed for Capital Projects 0 0 0 0 314,252 314,252

Total Fund Balances $ 119,040 $ 46,146 $ 0 $ 165,186 $ 314,252 $ 479,438

Total Liabilities and Fund Balances $ 119,040 $ 46,146 $ 1,640 $ 166,826 $ 314,252 $ 481,078

Special Revenue Funds

Capital Projects

Fund

80

Exhibit F-2

Gibson County, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended June 30, 2020



RevenuesFines, Forfeitures, and Penalties $ 0 $ 46,877 $ 0 $ 46,877 $ 0 $ 46,877Charges for Current Services 61,243 0 150 61,393 0 61,393Other Local Revenues 97 0 0 97 0 97Federal Government 0 0 0 0 516,101 516,101

Total Revenues $ 61,340 $ 46,877 $ 150 $ 108,367 $ 516,101 $ 624,468

ExpendituresCurrent:

Administration of Justice $ 0 $ 0 $ 150 $ 150 $ 0 $ 150Public Safety 0 31,149 0 31,149 879,673 910,822Public Health and Welfare 63,958 0 0 63,958 239,774 303,732Other Operations 0 0 0 0 522,084 522,084

Capital Projects 0 0 0 0 57,655 57,655Total Expenditures $ 63,958 $ 31,149 $ 150 $ 95,257 $ 1,699,186 $ 1,794,443

Excess (Deficiency) of RevenuesOver Expenditures $ (2,618) $ 15,728 $ 0 $ 13,110 $ (1,183,085) $ (1,169,975)

Other Financing Sources (Uses)Transfers In $ 0 $ 0 $ 0 $ 0 $ 936,600 $ 936,600

Total Other Financing Sources (Uses) $ 0 $ 0 $ 0 $ 0 $ 936,600 $ 936,600

(Continued)

Special Revenue FundsCapital

Projects Fund

81

Exhibit F-2

Gibson County, TennesseeCombining Statement of Revenues, Expenditures,

and Changes in Fund BalancesNonmajor Governmental Funds (Cont.)



Net Change in Fund Balances $ (2,618) $ 15,728 $ 0 $ 13,110 $ (246,485) $ (233,375)Fund Balance, July 1, 2019 121,658 30,418 0 152,076 560,737 712,813

Fund Balance, June 30, 2020 $ 119,040 $ 46,146 $ 0 $ 165,186 $ 314,252 $ 479,438

Special Revenue FundsCapital

Projects Fund

82

Exhibit F-3

Gibson County, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetSolid Waste/Sanitation FundFor the Year Ended June 30, 2020

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesCharges for Current Services $ 61,243 $ 66,000 $ 66,000 $ (4,757)Other Local Revenues 97 500 500 (403)

Total Revenues $ 61,340 $ 66,500 $ 66,500 $ (5,160)

ExpendituresPublic Health and Welfare

Sanitation Management $ 18,939 $ 55,000 $ 55,000 $ 36,061Other Waste Disposal 45,019 62,764 62,764 17,745

Total Expenditures $ 63,958 $ 117,764 $ 117,764 $ 53,806

Excess (Deficiency) of RevenuesOver Expenditures $ (2,618) $ (51,264) $ (51,264) $ 48,646

Net Change in Fund Balance $ (2,618) $ (51,264) $ (51,264) $ 48,646Fund Balance, July 1, 2019 121,658 77,149 77,149 44,509

Fund Balance, June 30, 2020 $ 119,040 $ 25,885 $ 25,885 $ 93,155

Budgeted Amounts

83

Exhibit F-4


in Fund Balance - Actual and BudgetDrug Control FundFor the Year Ended June 30, 2020



RevenuesFines, Forfeitures, and Penalties $ 46,877 $ 37,835 $ 44,235 $ 2,642

Total Revenues $ 46,877 $ 37,835 $ 44,235 $ 2,642

ExpendituresPublic Safety

Drug Enforcement $ 31,149 $ 38,214 $ 44,614 $ 13,465Total Expenditures $ 31,149 $ 38,214 $ 44,614 $ 13,465

Excess (Deficiency) of RevenuesOver Expenditures $ 15,728 $ (379) $ (379) $ 16,107

Net Change in Fund Balance $ 15,728 $ (379) $ (379) $ 16,107Fund Balance, July 1, 2019 30,418 17,521 17,521 12,897

Fund Balance, June 30, 2020 $ 46,146 $ 17,142 $ 17,142 $ 29,004

Budgeted Amounts

84

Major Governmental Fund

General Debt Service Fund ___________________________

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

___________________________

85

Exhibit G


in Fund Balance - Actual and BudgetGeneral Debt Service FundFor the Year Ended June 30, 2020



RevenuesLocal Taxes $ 1,031,810 $ 998,804 $ 998,804 $ 33,006Other Local Revenues 416,181 250,000 250,000 166,181State of Tennessee 30,253 40,000 40,000 (9,747)

Total Revenues $ 1,478,244 $ 1,288,804 $ 1,288,804 $ 189,440

ExpendituresPrincipal on Debt

General Government $ 1,015,000 $ 1,015,000 $ 1,015,000 $ 0Interest on Debt

General Government 301,590 301,590 301,590 0Other Debt Service

General Government 151,441 29,776 152,805 1,364Total Expenditures $ 1,468,031 $ 1,346,366 $ 1,469,395 $ 1,364

Excess (Deficiency) of RevenuesOver Expenditures $ 10,213 $ (57,562) $ (180,591) $ 190,804

Other Financing Sources (Uses)Refunding Debt Issued $ 7,175,000 $ 0 $ 7,175,000 $ 0Premiums on Debt Sold 1,121,184 0 1,121,184 0Payments to Refunded Debt Escrow Agent (8,174,655) 0 (8,174,655) 0

Total Other Financing Sources $ 121,529 $ 0 $ 121,529 $ 0

Net Change in Fund Balance $ 131,742 $ (57,562) $ (59,062) $ 190,804Fund Balance, July 1, 2019 1,720,774 1,431,383 1,431,383 289,391

Fund Balance, June 30, 2020 $ 1,852,516 $ 1,373,821 $ 1,372,321 $ 480,195

Budgeted Amounts

86

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. Special School District Fund – The Special School District Fund is used to account for property taxes collected for the five school districts of Gibson County and the districts’ shares of education revenues collected by the county, which must be apportioned among the various school systems on an average daily attendance basis. These collections are remitted to the districts 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 in Trenton, clerk and master in Humboldt, register of deeds, and sheriff. Such collections include amounts due the state, cities, other county funds, litigants, heirs, and others. District Attorney General Fund – The District Attorney General Fund is used to account for restricted revenue held for the benefit of the Office of District Attorney General.

87

Exhibit H-1

Gibson County, TennesseeCombining Statement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2020

Constitu-Cities - Special tional DistrictSales School Officers - AttorneyTax District Agency General Total

ASSETS

Cash $ 0 $ 0 $ 1,846,450 $ 0 $ 1,846,450Equity in Pooled Cash and Investments 0 49,346 0 69,860 119,206Due from Other Governments 1,070,636 1,290,775 0 564 2,361,975Property Taxes Receivable 0 14,636,159 0 0 14,636,159Allowance for Uncollectible Property Taxes 0 (426,996) 0 0 (426,996)

Total Assets $ 1,070,636 $ 15,549,284 $ 1,846,450 $ 70,424 $ 18,536,794

LIABILITIES

Due to Other Taxing Units $ 1,070,636 $ 15,549,284 $ 0 $ 0 $ 16,619,920Due to Litigants, Heirs, and Others 0 0 1,846,450 70,424 1,916,874

Total Liabilities $ 1,070,636 $ 15,549,284 $ 1,846,450 $ 70,424 $ 18,536,794

Agency Funds

88

Exhibit H-2

Gibson County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency FundsFor the Year Ended June 30, 2020

Beginning Ending Balance Additions Deductions Balance

Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 0 $ 6,610,826 $ 6,610,826 $ 0 Due from Other Governments 994,190 1,070,636 994,190 1,070,636

Total Assets $ 994,190 $ 7,681,462 $ 7,605,016 $ 1,070,636

Liabilities Due to Other Taxing Units $ 994,190 $ 7,681,462 $ 7,605,016 $ 1,070,636

Total Liabilities $ 994,190 $ 7,681,462 $ 7,605,016 $ 1,070,636

Special School District Fund Assets Equity in Pooled Cash and Investments $ 44,778 $ 22,394,440 $ 22,389,872 $ 49,346 Due from Other Governments 1,072,122 1,290,775 1,072,122 1,290,775 Taxes Receivable 13,957,164 14,636,159 13,957,164 14,636,159 Allowance for Uncollectible Taxes (455,292) (426,996) (455,292) (426,996)

Total Assets $ 14,618,772 $ 37,894,378 $ 36,963,866 $ 15,549,284

Liabilities Due to Other Taxing Units $ 14,618,772 $ 37,894,378 $ 36,963,866 $ 15,549,284

Total Liabilities $ 14,618,772 $ 37,894,378 $ 36,963,866 $ 15,549,284

Constitutional Officers - Agency Fund Assets Cash $ 1,496,333 $ 11,585,497 $ 11,235,380 $ 1,846,450

Total Assets $ 1,496,333 $ 11,585,497 $ 11,235,380 $ 1,846,450

Liabilities Due to Litigants, Heirs, and Others $ 1,496,333 $ 11,585,497 $ 11,235,380 $ 1,846,450


(Continued)

89

Exhibit H-2

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

Beginning Ending Balance Additions Deductions Balance

District Attorney General Fund Assets Equity in Pooled Cash and Investments $ 65,363 $ 14,545 $ 10,048 $ 69,860 Due from Other Governments 682 564 682 564

Total Assets $ 66,045 $ 15,109 $ 10,730 $ 70,424

Liabilities Due to Litigants, Heirs, and Others $ 66,045 $ 15,109 $ 10,730 $ 70,424

Total Liabilities $ 66,045 $ 15,109 $ 10,730 $ 70,424

Totals - All Agency Funds Assets Cash $ 1,496,333 $ 11,585,497 $ 11,235,380 $ 1,846,450 Equity in Pooled Cash and Investments 110,141 29,019,811 29,010,746 119,206 Due from Other Governments 2,066,994 2,361,975 2,066,994 2,361,975 Taxes Receivable 13,957,164 14,636,159 13,957,164 14,636,159 Allowance for Uncollectible Taxes (455,292) (426,996) (455,292) (426,996)

Total Assets $ 17,175,340 $ 57,176,446 $ 55,814,992 $ 18,536,794

Liabilities Due to Other Taxing Units $ 15,612,962 $ 45,575,840 $ 44,568,882 $ 16,619,920 Due to Litigants, Heirs, and Others 1,562,378 11,600,606 11,246,110 1,916,874


90

MISCELLANEOUS SCHEDULES

91

Exhibit I-1

Gibson County, TennesseeSchedule of Changes in Long-term BondsFor the Year Ended June 30, 2020

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

Description of Indebtedness of Issue Rate Issue Date 7-1-19 Period Period Refunded 6-30-20

BONDS PAYABLE Payable through General Debt Service Fund General Obligation Refunding, Series 2012 $ 9,860,000 .5 to 2.4 % 4-12-12 6-30-20 $ 6,725,000 $ 0 $ 635,000 $ 6,090,000 $ 0 General Obligation, Series 2012B 2,250,000 1 to 2 9-10-12 6-30-20 650,000 0 160,000 490,000 0 General Obligation, Series 2015 3,025,000 2 to 2.5 6-30-15 6-30-20 1,750,000 0 170,000 1,580,000 0 General Obligation Refunding, Series 2017 4,290,000 1.45 to 2.65 10-18-17 6-1-33 4,210,000 0 50,000 0 4,160,000 General Obligation Refunding, Series 2020 7,175,000 2 to 5 6-30-20 6-1-30 0 7,175,000 0 0 7,175,000

Total Bonds Payable $ 13,335,000 $ 7,175,000 $ 1,015,000 $ 8,160,000 $ 11,335,000

92

Exhibit I-2

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

YearEndingJune 30 Principal Interest Total

2021 $ 870,000 $ 391,861 $ 1,261,8612022 850,000 375,600 1,225,6002023 855,000 335,763 1,190,7632024 845,000 293,900 1,138,9002025 855,000 253,150 1,108,1502026 880,000 212,650 1,092,6502027 915,000 178,375 1,093,3752028 935,000 142,237 1,077,2372029 900,000 105,300 1,005,3002030 880,000 86,300 966,3002031 850,000 65,025 915,0252032 850,000 44,200 894,2002033 850,000 22,525 872,525

Total $ 11,335,000 $ 2,506,886 $ 13,841,886

Bonds

93

Exhibit I-3

Gibson County, TennesseeSchedule of TransfersFor the Year Ended June 30, 2020

From Fund To Fund Purpose Amount

General General Capital Projects Capital expenditures $ 936,600

Total Transfers $ 936,600

94

Exhibit I-4

Gibson County, TennesseeSchedule of Salaries and Official Bonds of Principal OfficialsFor the Year Ended June 30, 2020

SalaryPaid

During Official Authorization for Salary Period Bond Surety County Mayor Section 8-24-102, TCA, and $ 102,596 $ 400,000 Local Government Property and

Chapter 111, Private Acts of 1929 Casualty FundRoad Supervisor Section 8-24-102, TCA 95,000 100,000 RLI Insurance CompanyTrustee Section 8-24-102, TCA 80,751 1,016,824 "Assessor of Property Section 8-24-102, TCA 81,751 (1) 50,000 "County Clerk Section 8-24-102, TCA 81,751 (1) 400,000 Local Government Property and

Casualty FundCircuit and General Sessions Courts Clerk Section 8-24-102, TCA 81,751 (1) 400,000 "Clerk and Master - Trenton Section 8-24-102, TCA 81,751 (1),(2) 115,000 RLI Insurance Company

and Chancery Court JudgeClerk and Master - Humboldt Section 8-24-102, TCA 81,751 (1) 400,000 Local Government Property and

Casualty FundRegister of Deeds Section 8-24-102, TCA 80,751 400,000 "Sheriff Section 8-24-102, TCA 98,510 (3) 400,000 "

and County Commission

Employee Blanket Bonds: All Employees 400,000 Local Government Property and

Casualty Fund

(1) Includes a certified public administrator supplement of $1,000.(2) Does not include special commissioner fees of $150(3) Includes a law enforcement training supplement of $800, and includes $8,827 for supervising the county workhouse.

95

Exhibit I-5

Gibson County, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesFor the Year Ended June 30, 2020

Constitu -Solid tional Highway / General

Waste / Drug Officers - Public DebtGeneral Sanitation Control Fees Works Service

Local TaxesCounty Property Taxes

Current Property Tax $ 7,577,266 $ 0 $ 0 $ 0 $ 0 $ 904,184Trustee's Collections - Prior Year 171,093 0 0 0 0 25,015Trustee's Collections - Bankruptcy 0 0 0 0 78 0Circuit Clerk/Clerk and Master Collections - Prior Years 128,024 0 0 0 0 18,321Interest and Penalty 39,538 0 0 0 8 5,393Payments in-Lieu-of Taxes - Local Utilities 97,149 0 0 0 0 11,547Payments in-Lieu-of Taxes - Other 65,558 0 0 0 0 8,163

County Local Option TaxesLocal Option Sales Tax 0 0 0 0 818,072 0Hotel/Motel Tax 76,923 0 0 0 0 0Wheel Tax 0 0 0 0 2,165,262 0Litigation Tax - General 90,136 0 0 0 0 0Litigation Tax - Special Purpose 9,817 0 0 0 0 0Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 0 42,265Business Tax 507,228 0 0 0 0 0Mixed Drink Tax 1,291 0 0 0 0 0

Statutory Local TaxesBank Excise Tax 33,845 0 0 0 16,922 16,922Wholesale Beer Tax 52,152 0 0 0 0 0

Total Local Taxes $ 8,850,020 $ 0 $ 0 $ 0 $ 3,000,342 $ 1,031,810

Licenses and PermitsLicenses

Animal Vaccination $ 6,093 $ 0 $ 0 $ 0 $ 0 $ 0Cable TV Franchise 52,101 0 0 0 0 0

(Continued)

Special Revenue FundsDebt Service

Fund

96

Exhibit I-5


All Governmental Fund Types (Cont.)



Licenses and Permits (Cont.)Permits

Beer Permits $ 380 $ 0 $ 0 $ 0 $ 0 $ 0Building Permits 60,959 0 0 0 0 0

Total Licenses and Permits $ 119,533 $ 0 $ 0 $ 0 $ 0 $ 0

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 6,096 $ 0 $ 0 $ 0 $ 0 $ 0Officers Costs 18,102 0 0 0 0 0Drug Control Fines 2,009 0 1,092 0 0 0Drug Court Fees 861 0 0 0 0 0Jail Fees 1,775 0 0 0 0 0DUI Treatment Fines 1,966 0 0 0 0 0Data Entry Fee - Circuit Court 696 0 0 0 0 0Courtroom Security Fee 13 0 0 0 0 0Victims Assistance Assessments 1,723 0 0 0 0 0

General Sessions CourtFines 14,679 0 0 0 0 0Officers Costs 44,016 0 0 0 0 0Game and Fish Fines 4,068 0 0 0 0 0Drug Control Fines 2,055 0 4,656 0 0 0Drug Court Fees 5,628 0 0 0 0 0Jail Fees 9,984 0 0 0 0 0DUI Treatment Fines 3,375 0 0 0 0 0Data Entry Fee - General Sessions Court 8,535 0 0 0 0 0Courtroom Security Fee 1,859 0 0 0 0 0Victims Assistance Assessments 10,579 0 0 0 0 0

(Continued)


Fund

97

Exhibit I-5





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

Fines $ 9,144 $ 0 $ 0 $ 0 $ 0 $ 0Officers Costs 14,424 0 0 0 0 0Drug Control Fines 166 0 1,520 0 0 0Data Entry Fee - Juvenile Court 2,103 0 0 0 0 0Courtroom Security Fee 6 0 0 0 0 0

Chancery CourtOfficers Costs 3,898 0 0 0 0 0Data Entry Fee - Chancery Court 3,876 0 0 0 0 0Courtroom Security Fee 698 0 0 0 0 0

Other Courts - In-countyFines 3,232 0 0 0 0 0Officers Costs 53,637 0 0 0 0 0Drug Control Fines 1,591 0 5,275 0 0 0Drug Court Fees 7,376 0 0 0 0 0Jail Fees 12,820 0 0 0 0 0DUI Treatment Fines 6,222 0 0 0 0 0

Judicial District Drug ProgramData Entry Fee - Other Courts 7,126 0 0 0 0 0Courtroom Security Fee 1,631 0 0 0 0 0Victims Assistance Assessments 23,881 0 0 0 0 0

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 0 34,334 0 0 0Other Fines, Forfeitures, and Penalties 15,856 0 0 0 0 0

Total Fines, Forfeitures, and Penalties $ 305,706 $ 0 $ 46,877 $ 0 $ 0 $ 0

(Continued)


Fund

98

Exhibit I-5





Charges for Current ServicesGeneral Service Charges

Tipping Fees $ 0 $ 12,431 $ 0 $ 0 $ 0 $ 0Surcharge - Waste Tire Disposal 0 48,812 0 0 0 0Patient Charges 2,868,145 0 0 0 0 0Work Release Charges for Board 122,079 0 0 0 0 0Other General Service Charges 1,950 0 0 0 0 0Service Charges 37,866 0 0 0 0 0

FeesAirport Fees 50,069 0 0 0 0 0Recreation Fees 1,700 0 0 0 0 0Copy Fees 144 0 0 0 0 0Library Fees 8,171 0 0 0 0 0Archives and Records Management Fee 100 0 0 0 0 0Greenbelt Late Application Fee 200 0 0 0 0 0Vending Machine Collections 631 0 0 0 1,876 0Constitutional Officers' Fees and Commissions 0 0 0 150 0 0Data Processing Fee - Register 16,770 0 0 0 0 0Data Processing Fee - Sheriff 10,091 0 0 0 0 0Sexual Offender Registration Fee - Sheriff 5,855 0 0 0 0 0Data Processing Fee - County Clerk 600 0 0 0 0 0Vehicle Insurance Coverage and Reinstatement Fees 1,485 0 0 0 0 0

Total Charges for Current Services $ 3,125,856 $ 61,243 $ 0 $ 150 $ 1,876 $ 0

Other Local RevenuesRecurring Items

Investment Income $ 0 $ 0 $ 0 $ 0 $ 0 $ 416,181

(Continued)


Fund

99

Exhibit I-5





Other Local Revenues (Cont.)Recurring Items (Cont.)

Lease/Rentals $ 119,916 $ 0 $ 0 $ 0 $ 0 $ 0Sale of Materials and Supplies 151,262 0 0 0 39,280 0Commissary Sales 127,368 0 0 0 0 0Sale of Recycled Materials 1,250 97 0 0 0 0Sale of Animals/Livestock 1,700 0 0 0 0 0Miscellaneous Refunds 8,890 0 0 0 21,091 0

Nonrecurring ItemsSale of Equipment 13,240 0 0 0 10,370 0Sale of Property 20 0 0 0 0 0Damages Recovered from Individuals 3,821 0 0 0 840 0Contributions and Gifts 5,114 0 0 0 0 0

Other Local RevenuesOther Local Revenues 7,075 0 0 0 0 0

Total Other Local Revenues $ 439,656 $ 97 $ 0 $ 0 $ 71,581 $ 416,181

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 486,869 $ 0 $ 0 $ 0 $ 0 $ 0Circuit Court Clerk 64,786 0 0 0 0 0General Sessions Court Clerk 151,376 0 0 0 0 0Clerk and Master 117,862 0 0 0 0 0Register 222,644 0 0 0 0 0Sheriff 34,146 0 0 0 0 0Trustee 737,589 0 0 0 0 0Other Officials 182,335 0 0 0 0 0

Total Fees Received From County Officials $ 1,997,607 $ 0 $ 0 $ 0 $ 0 $ 0

(Continued)


Fund

100

Exhibit I-5





State of TennesseeGeneral Government Grants

Airport Maintenance Program $ 28,185 $ 0 $ 0 $ 0 $ 0 $ 0Aging Programs 107,046 0 0 0 0 0Other General Government Grants 46,899 0 0 0 0 0

Public Safety GrantsLaw Enforcement Training Programs 24,800 0 0 0 0 0Drug Control Grants 44,561 0 0 0 0 0Other Public Safety Grants 3,332 0 0 0 0 0

Health and Welfare GrantsHealth Department Programs 282,646 0 0 0 0 0

Public Works GrantsBridge Program 0 0 0 0 2,197,099 0State Aid Program 0 0 0 0 208,155 0Litter Program 23,591 0 0 0 0 0Other Public Works Grants 1,006 0 0 0 0 0

Other State RevenuesIncome Tax 0 0 0 0 0 30,253Beer Tax 18,175 0 0 0 0 0Vehicle Certificate of Title Fees 9,702 0 0 0 0 0Alcoholic Beverage Tax 119,337 0 0 0 0 0State Revenue Sharing - T.V.A. 1,018,457 0 0 0 0 0State Revenue Sharing - Telecommunications 27,247 0 0 0 0 0Contracted Prisoner Boarding 1,513,200 0 0 0 0 0Gasoline and Motor Fuel Tax 0 0 0 0 2,841,423 0Petroleum Special Tax 0 0 0 0 35,848 0Registrar's Salary Supplement 15,164 0 0 0 0 0

(Continued)


Fund

101

Exhibit I-5





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

Other State Grants $ 1,082 $ 0 $ 0 $ 0 $ 0 $ 0Other State Revenues 12,154 0 0 0 0 0

Total State of Tennessee $ 3,296,584 $ 0 $ 0 $ 0 $ 5,282,525 $ 30,253

Federal GovernmentFederal Through State

Civil Defense Reimbursement $ 107,637 $ 0 $ 0 $ 0 $ 0 $ 0Other Federal through State 0 0 0 0 0 0

Direct Federal RevenueCOVID-19 Grant #6 5,382 0 0 0 0 0COVID-19 Grant #9 109,463 0 0 0 0 0COVID-19 Grant #10 37,778 0 0 0 0 0Other Direct Federal Revenue 7,000 0 0 0 0 0

Total Federal Government $ 267,260 $ 0 $ 0 $ 0 $ 0 $ 0

Other Governments and Citizens GroupsOther Governments

Contributions $ 41,250 $ 0 $ 0 $ 0 $ 0 $ 0Contracted Services 162,071 0 0 0 0 0

Total Other Governments and Citizens Groups $ 203,321 $ 0 $ 0 $ 0 $ 0 $ 0

Total $ 18,605,543 $ 61,340 $ 46,877 $ 150 $ 8,356,324 $ 1,478,244

(Continued)


Fund

102

Exhibit I-5



GeneralCapitalProjects Total

Local TaxesCounty Property Taxes

Current Property Tax $ 0 $ 8,481,450Trustee's Collections - Prior Year 0 196,108Trustee's Collections - Bankruptcy 0 78Circuit Clerk/Clerk and Master Collections - Prior Years 0 146,345Interest and Penalty 0 44,939Payments in-Lieu-of Taxes - Local Utilities 0 108,696Payments in-Lieu-of Taxes - Other 0 73,721

County Local Option TaxesLocal Option Sales Tax 0 818,072Hotel/Motel Tax 0 76,923Wheel Tax 0 2,165,262Litigation Tax - General 0 90,136Litigation Tax - Special Purpose 0 9,817Litigation Tax - Jail, Workhouse, or Courthouse 0 42,265Business Tax 0 507,228Mixed Drink Tax 0 1,291

Statutory Local TaxesBank Excise Tax 0 67,689Wholesale Beer Tax 0 52,152

Total Local Taxes $ 0 $ 12,882,172

Licenses and PermitsLicenses

Animal Vaccination $ 0 $ 6,093Cable TV Franchise 0 52,101

(Continued)


103

Exhibit I-5




Licenses and Permits (Cont.)Permits

Beer Permits $ 0 $ 380Building Permits 0 60,959

Total Licenses and Permits $ 0 $ 119,533

Fines, Forfeitures, and PenaltiesCircuit Court

Fines $ 0 $ 6,096Officers Costs 0 18,102Drug Control Fines 0 3,101Drug Court Fees 0 861Jail Fees 0 1,775DUI Treatment Fines 0 1,966Data Entry Fee - Circuit Court 0 696Courtroom Security Fee 0 13Victims Assistance Assessments 0 1,723

General Sessions CourtFines 0 14,679Officers Costs 0 44,016Game and Fish Fines 0 4,068Drug Control Fines 0 6,711Drug Court Fees 0 5,628Jail Fees 0 9,984DUI Treatment Fines 0 3,375Data Entry Fee - General Sessions Court 0 8,535Courtroom Security Fee 0 1,859Victims Assistance Assessments 0 10,579

(Continued)


104

Exhibit I-5




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

Fines $ 0 $ 9,144Officers Costs 0 14,424Drug Control Fines 0 1,686Data Entry Fee - Juvenile Court 0 2,103Courtroom Security Fee 0 6

Chancery CourtOfficers Costs 0 3,898Data Entry Fee - Chancery Court 0 3,876Courtroom Security Fee 0 698

Other Courts - In-countyFines 0 3,232Officers Costs 0 53,637Drug Control Fines 0 6,866Drug Court Fees 0 7,376Jail Fees 0 12,820DUI Treatment Fines 0 6,222

Judicial District Drug ProgramData Entry Fee - Other Courts 0 7,126Courtroom Security Fee 0 1,631Victims Assistance Assessments 0 23,881

Other Fines, Forfeitures, and PenaltiesProceeds from Confiscated Property 0 34,334Other Fines, Forfeitures, and Penalties 0 15,856

Total Fines, Forfeitures, and Penalties $ 0 $ 352,583

(Continued)


105

Exhibit I-5




Charges for Current ServicesGeneral Service Charges

Tipping Fees $ 0 $ 12,431Surcharge - Waste Tire Disposal 0 48,812Patient Charges 0 2,868,145Work Release Charges for Board 0 122,079Other General Service Charges 0 1,950Service Charges 0 37,866

FeesAirport Fees 0 50,069Recreation Fees 0 1,700Copy Fees 0 144Library Fees 0 8,171Archives and Records Management Fee 0 100Greenbelt Late Application Fee 0 200Vending Machine Collections 0 2,507Constitutional Officers' Fees and Commissions 0 150Data Processing Fee - Register 0 16,770Data Processing Fee - Sheriff 0 10,091Sexual Offender Registration Fee - Sheriff 0 5,855Data Processing Fee - County Clerk 0 600Vehicle Insurance Coverage and Reinstatement Fees 0 1,485

Total Charges for Current Services $ 0 $ 3,189,125

Other Local RevenuesRecurring Items

Investment Income $ 0 $ 416,181

(Continued)


106

Exhibit I-5




Other Local Revenues (Cont.)Recurring Items (Cont.)

Lease/Rentals $ 0 $ 119,916Sale of Materials and Supplies 0 190,542Commissary Sales 0 127,368Sale of Recycled Materials 0 1,347Sale of Animals/Livestock 0 1,700Miscellaneous Refunds 0 29,981

Nonrecurring ItemsSale of Equipment 0 23,610Sale of Property 0 20Damages Recovered from Individuals 0 4,661Contributions and Gifts 0 5,114

Other Local RevenuesOther Local Revenues 0 7,075

Total Other Local Revenues $ 0 $ 927,515

Fees Received From County OfficialsFees In-Lieu-of Salary

County Clerk $ 0 $ 486,869Circuit Court Clerk 0 64,786General Sessions Court Clerk 0 151,376Clerk and Master 0 117,862Register 0 222,644Sheriff 0 34,146Trustee 0 737,589Other Officials 0 182,335

Total Fees Received From County Officials $ 0 $ 1,997,607

(Continued)


107

Exhibit I-5




State of TennesseeGeneral Government Grants

Airport Maintenance Program $ 0 $ 28,185Aging Programs 0 107,046Other General Government Grants 0 46,899

Public Safety GrantsLaw Enforcement Training Programs 0 24,800Drug Control Grants 0 44,561Other Public Safety Grants 0 3,332

Health and Welfare GrantsHealth Department Programs 0 282,646

Public Works GrantsBridge Program 0 2,197,099State Aid Program 0 208,155Litter Program 0 23,591Other Public Works Grants 0 1,006

Other State RevenuesIncome Tax 0 30,253Beer Tax 0 18,175Vehicle Certificate of Title Fees 0 9,702Alcoholic Beverage Tax 0 119,337State Revenue Sharing - T.V.A. 0 1,018,457State Revenue Sharing - Telecommunications 0 27,247Contracted Prisoner Boarding 0 1,513,200Gasoline and Motor Fuel Tax 0 2,841,423Petroleum Special Tax 0 35,848Registrar's Salary Supplement 0 15,164

(Continued)


108

Exhibit I-5




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

Other State Grants $ 0 $ 1,082Other State Revenues 0 12,154

Total State of Tennessee $ 0 $ 8,609,362

Federal GovernmentFederal Through State

Civil Defense Reimbursement $ 0 $ 107,637Other Federal through State 516,101 516,101

Direct Federal RevenueCOVID-19 Grant #6 0 5,382COVID-19 Grant #9 0 109,463COVID-19 Grant #10 0 37,778Other Direct Federal Revenue 0 7,000

Total Federal Government $ 516,101 $ 783,361

Other Governments and Citizens GroupsOther Governments

Contributions $ 0 $ 41,250Contracted Services 0 162,071

Total Other Governments and Citizens Groups $ 0 $ 203,321

Total $ 516,101 $ 29,064,579


109

Exhibit I-6

Gibson County, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2020

General FundGeneral Government

County CommissionBoard and Committee Members Fees $ 23,382Other Per Diem and Fees 250Social Security 1,465Employer Medicare 343Audit Services 18,880Dues and Memberships 1,800Legal Notices, Recording, and Court Costs 7,104Office Supplies 531

Total County Commission $ 53,755

Board of EqualizationBoard and Committee Members Fees $ 2,500

Total Board of Equalization 2,500

County Mayor/ExecutiveCounty Official/Administrative Officer $ 102,596Deputy(ies) 54,728Part-time Personnel 1,510Social Security 9,564Pensions 12,913Employee and Dependent Insurance 21,002Employer Medicare 2,237Communication 2,077Dues and Memberships 1,800Legal Notices, Recording, and Court Costs 588Maintenance Agreements 1,111Postal Charges 1,121Printing, Stationery, and Forms 259Travel 3,843Office Supplies 1,661Liability Insurance 518Workers' Compensation Insurance 75In Service/Staff Development 100Data Processing Equipment 1,930

Total County Mayor/Executive 219,633

County AttorneyLegal Services $ 5,647

Total County Attorney 5,647

Election CommissionCounty Official/Administrative Officer $ 72,676Deputy(ies) 31,692Part-time Personnel 4,998Board and Committee Members Fees 1,320Election Workers 34,036Social Security 7,471

(Continued)

110

Exhibit I-6



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

Election Commission (Cont.)Pensions $ 8,600Employee and Dependent Insurance 7,150Employer Medicare 1,747Contracts with Private Agencies 6,958Legal Notices, Recording, and Court Costs 6,307Maintenance Agreements 16,996Maintenance and Repair Services - Office Equipment 225Postal Charges 4,610Printing, Stationery, and Forms 5,372Office Supplies 5,625Building and Contents Insurance 1,025Liability Insurance 3,600Workers' Compensation Insurance 191Data Processing Equipment 2,965

Total Election Commission $ 223,564

Register of DeedsCounty Official/Administrative Officer $ 80,751Deputy(ies) 95,553Social Security 10,464Pensions 14,527Employee and Dependent Insurance 28,599Employer Medicare 2,447Dues and Memberships 790Maintenance Agreements 10,350Postal Charges 1,796Printing, Stationery, and Forms 1,042Travel 958Data Processing Supplies 994Office Supplies 462Liability Insurance 828Workers' Compensation Insurance 127In Service/Staff Development 80Data Processing Equipment 276

Total Register of Deeds 250,044

DevelopmentCommunication $ 962Contracts with Government Agencies 70,315Contracts with Private Agencies 8,652Legal Notices, Recording, and Court Costs 115Maintenance and Repair Services - Office Equipment 357Postal Charges 340Printing, Stationery, and Forms 242Travel 2,073Office Supplies 117

Total Development 83,173

(Continued)

111

Exhibit I-6



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

County BuildingsCustodial Personnel $ 90,339Overtime Pay 2,596Social Security 5,102Pensions 7,658Employee and Dependent Insurance 21,449Employer Medicare 1,193Communication 21,334Laundry Service 2,310Maintenance Agreements 11,204Maintenance and Repair Services - Buildings 89,264Maintenance and Repair Services - Equipment 31,050Maintenance and Repair Services - Vehicles 678Permits 175Custodial Supplies 8,709Food Supplies 335Gasoline 926Natural Gas 11,072Office Supplies 147Utilities 54,391Building and Contents Insurance 26,052Liability Insurance 621Vehicle and Equipment Insurance 255Workers' Compensation Insurance 2,011Heating and Air Conditioning Equipment 21,263Maintenance Equipment 412Other Equipment 893

Total County Buildings $ 411,439

Preservation of RecordsCommunication $ 1,225Natural Gas 87Utilities 1,099Building and Contents Insurance 966

Total Preservation of Records 3,377

FinanceAccounting and Budgeting

Supervisor/Director $ 90,596Part-time Personnel 3,767Educational Incentive - Other County Employees 1,145Social Security 5,691Pensions 7,870Employee and Dependent Insurance 9,145Employer Medicare 1,331Communication 934Data Processing Services 16,113Travel 290

(Continued)

112

Exhibit I-6



General Fund (Cont.)Finance (Cont.)

Accounting and Budgeting (Cont.)Liability Insurance $ 412Workers' Compensation Insurance 120In Service/Staff Development 1,211Data Processing Equipment 6,684

Total Accounting and Budgeting $ 145,309

Property Assessor's OfficeCounty Official/Administrative Officer $ 80,751Deputy(ies) 156,700Part-time Personnel 13,210Educational Incentive - Official/Admin Officer 1,000Educational Incentive - Other County Employees 1,000Social Security 14,354Pensions 19,649Employee and Dependent Insurance 42,898Employer Medicare 3,357Data Processing Services 24,116Dues and Memberships 3,945Legal Notices, Recording, and Court Costs 96Maintenance Agreements 892Maintenance and Repair Services - Office Equipment 254Postal Charges 4,545Printing, Stationery, and Forms 1,297Travel 7,061Other Contracted Services 50,162Office Supplies 1,785Liability Insurance 1,449Workers' Compensation Insurance 226In Service/Staff Development 710Data Processing Equipment 1,645

Total Property Assessor's Office 431,102

County Trustee's OfficeCounty Official/Administrative Officer $ 80,751Deputy(ies) 129,466Educational Incentive - Other County Employees 4,000Social Security 12,225Pensions 17,322Employee and Dependent Insurance 28,599Employer Medicare 2,859Dues and Memberships 944Legal Notices, Recording, and Court Costs 1,724Maintenance Agreements 29,422Postal Charges 10,864Printing, Stationery, and Forms 5,311Travel 814Office Supplies 4,749

(Continued)

113

Exhibit I-6



General Fund (Cont.)Finance (Cont.)

County Trustee's Office (Cont.)Liability Insurance $ 1,035Workers' Compensation Insurance 172In Service/Staff Development 730Data Processing Equipment 5,114

Total County Trustee's Office $ 336,101

County Clerk's OfficeCounty Official/Administrative Officer $ 80,751Deputy(ies) 401,576Part-time Personnel 22,334Educational Incentive - Official/Admin Officer 1,000Educational Incentive - Other County Employees 2,000Other Salaries and Wages 2,000Social Security 29,748Pensions 40,140Employee and Dependent Insurance 85,796Employer Medicare 6,957Dues and Memberships 2,293Maintenance Agreements 21,400Maintenance and Repair Services - Office Equipment 406Postal Charges 18,998Printing, Stationery, and Forms 3,118Rentals 7,184Travel 196Library Books/Media 791Office Supplies 9,812Liability Insurance 3,312Workers' Compensation Insurance 563Data Processing Equipment 11,417

Total County Clerk's Office 751,792

Administration of JusticeCircuit Court

County Official/Administrative Officer $ 80,751Deputy(ies) 227,787Salary Supplements 1,800Educational Incentive - Official/Admin Officer 1,000Educational Incentive - Other County Employees 1,000Jury and Witness Expense 11,821Social Security 18,311Pensions 25,696Employee and Dependent Insurance 56,910Employer Medicare 4,282Contracts with Private Agencies 2,275Dues and Memberships 950Legal Notices, Recording, and Court Costs 192Maintenance Agreements 13,780

(Continued)

114

Exhibit I-6



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

Circuit Court (Cont.)Maintenance and Repair Services - Office Equipment $ 5,085Postal Charges 4,277Printing, Stationery, and Forms 853Travel 622Data Processing Supplies 473Natural Gas 1,794Office Supplies 5,570Utilities 12,840Building and Contents Insurance 1,932Liability Insurance 1,656Workers' Compensation Insurance 305In Service/Staff Development 210Data Processing Equipment 14,300Other Equipment 9,127

Total Circuit Court $ 505,599

General Sessions CourtJudge(s) $ 170,869Supervisor/Director 37,706Educational Assistants 3,400Part-time Personnel 100Social Security 10,871Pensions 17,261Employer Medicare 3,059Communication 200Contracts with Government Agencies 800Dues and Memberships 400Postal Charges 110Rentals 1,852Travel 1,375Office Supplies 1,993Building and Contents Insurance 1,932Liability Insurance 621Workers' Compensation Insurance 55Data Processing Equipment 4,458Office Equipment 989

Total General Sessions Court 258,051

Drug CourtSupervisor/Director $ 31,718Social Security 1,595Pensions 2,613Employee and Dependent Insurance 7,150Employer Medicare 373Travel 1,497Drugs and Medical Supplies 5,967Liability Insurance 414

(Continued)

115

Exhibit I-6




Drug Court (Cont.)Workers' Compensation Insurance $ 42Other Charges 47

Total Drug Court $ 51,416

Chancery CourtCounty Official/Administrative Officer $ 80,751Deputy(ies) 160,244Educational Incentive - Official/Admin Officer 1,000Educational Incentive - Other County Employees 3,000Social Security 14,602Pensions 20,188Employee and Dependent Insurance 32,267Employer Medicare 3,415Data Processing Services 12,278Dues and Memberships 1,200Maintenance Agreements 410Maintenance and Repair Services - Office Equipment 62Postal Charges 1,000Rentals 3,901Travel 441Natural Gas 1,692Office Supplies 7,127Utilities 10,404Building and Contents Insurance 2,509Liability Insurance 1,242Workers' Compensation Insurance 320In Service/Staff Development 300Data Processing Equipment 12,245Other Equipment 1,052

Total Chancery Court 371,650

Juvenile CourtJudge(s) $ 60,200Youth Service Officer(s) 53,901Part-time Personnel 18,998Other Salaries and Wages 96,297Social Security 12,864Pensions 17,337Employee and Dependent Insurance 25,118Employer Medicare 3,009Communication 1,440Dues and Memberships 200Legal Notices, Recording, and Court Costs 96Maintenance Agreements 7,796Maintenance and Repair Services - Office Equipment 190Postal Charges 120Travel 2,998

(Continued)

116

Exhibit I-6




Juvenile Court (Cont.)Other Contracted Services $ 4,201Natural Gas 1,953Office Supplies 4,094Utilities 10,676Building and Contents Insurance 10,208Liability Insurance 1,242Workers' Compensation Insurance 225In Service/Staff Development 70Data Processing Equipment 4,866

Total Juvenile Court $ 338,099

District Attorney GeneralOther Salaries and Wages $ 35,700Social Security 2,125Pensions 2,942Employee and Dependent Insurance 7,500Employer Medicare 497Travel 515Liability Insurance 207Workers' Compensation Insurance 541

Total District Attorney General 50,027

Other Administration of JusticeCounty Official/Administrative Officer $ 80,751Deputy(ies) 170,164Salary Supplements 2,025Educational Incentive - Official/Admin Officer 1,000Educational Incentive - Other County Employees 4,000Jury and Witness Expense 10,669Social Security 15,147Pensions 21,130Employee and Dependent Insurance 29,046Employer Medicare 3,543Communication 1,781Dues and Memberships 900Maintenance Agreements 26,277Maintenance and Repair Services - Office Equipment 294Postal Charges 3,011Printing, Stationery, and Forms 1,394Rentals 14,655Travel 54Office Supplies 9,046Building and Contents Insurance 167Liability Insurance 1,242Workers' Compensation Insurance 336In Service/Staff Development 400Data Processing Equipment 9,736

Total Other Administration of Justice 406,768

(Continued)

117

Exhibit I-6




Victim Assistance ProgramsContributions $ 33,901

Total Victim Assistance Programs $ 33,901

Public SafetySheriff's Department

County Official/Administrative Officer $ 97,710Assistant(s) 57,496Deputy(ies) 1,081,848Youth Service Officer(s) 98,020Salary Supplements 24,000Clerical Personnel 170,274Part-time Personnel 30,189Educational Incentive - Other County Employees 3,000Overtime Pay 77,680Other Salaries and Wages 222,386Social Security 111,451Pensions 150,914Employee and Dependent Insurance 210,721Employer Medicare 26,065Communication 3,219Contracts with Government Agencies 6,125Contracts with Private Agencies 49,747Confidential Drug Enforcement Payments 1,000Maintenance and Repair Services - Buildings 5,082Maintenance and Repair Services - Vehicles 59,432Postal Charges 4,592Printing, Stationery, and Forms 7,125Travel 9,940Gasoline 99,591Law Enforcement Supplies 7,535Office Supplies 9,136Uniforms 17,102Building and Contents Insurance 45Liability Insurance 72,727Vehicle and Equipment Insurance 21,532Workers' Compensation Insurance 26,309In Service/Staff Development 5,534Data Processing Equipment 4,952Law Enforcement Equipment 8,594

Total Sheriff's Department 2,781,073

JailGuards $ 1,409,966Part-time Personnel 18,028Overtime Pay 23,825Social Security 86,832Pensions 118,143

(Continued)

118

Exhibit I-6



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

Jail (Cont.)Employee and Dependent Insurance $ 228,175Employer Medicare 20,307Maintenance Agreements 18,960Maintenance and Repair Services - Buildings 31,262Medical and Dental Services 435,714Custodial Supplies 24,049Food Supplies 278,173Natural Gas 18,600Office Supplies 9,043Uniforms 13,095Utilities 280,559Building and Contents Insurance 43,084Liability Insurance 72,727Workers' Compensation Insurance 27,619Other Charges 43,225Law Enforcement Equipment 8,678

Total Jail $ 3,210,064

Fire Prevention and ControlSupervisor/Director $ 45,188Part-time Personnel 20,313Social Security 3,546Pensions 3,724Employee and Dependent Insurance 7,150Employer Medicare 829Communication 7,550Contracts with Private Agencies 2,000Dues and Memberships 500Legal Notices, Recording, and Court Costs 117Licenses 70Maintenance and Repair Services - Buildings 2,755Maintenance and Repair Services - Equipment 16,950Maintenance and Repair Services - Vehicles 29,483Custodial Supplies 112Diesel Fuel 7,240Food Supplies 318Gasoline 2,910Natural Gas 6,595Office Supplies 2,908Uniforms 798Utilities 14,199Other Supplies and Materials 25,523Building and Contents Insurance 2,633Liability Insurance 8,133Vehicle and Equipment Insurance 44,535Workers' Compensation Insurance 5,264In Service/Staff Development 10,196

(Continued)

119

Exhibit I-6




Fire Prevention and Control (Cont.)Communication Equipment $ 789Data Processing Equipment 100

Total Fire Prevention and Control $ 272,428

Rural Fire ProtectionPart-time Personnel $ 5,430Social Security 337Employer Medicare 79

Total Rural Fire Protection 5,846

Civil DefenseSupervisor/Director $ 47,657Other Salaries and Wages 40,030Social Security 5,040Pensions 7,225Employee and Dependent Insurance 14,299Employer Medicare 1,179Communication 9,244Dues and Memberships 75Maintenance and Repair Services - Buildings 8,257Maintenance and Repair Services - Equipment 7,647Food Supplies 164Gasoline 1,871Natural Gas 3,928Office Supplies 1,682Utilities 22,416Building and Contents Insurance 4,782Liability Insurance 414Vehicle and Equipment Insurance 3,918Workers' Compensation Insurance 227Office Equipment 56Other Equipment 2,350

Total Civil Defense 182,461

Other Emergency ManagementPrinting, Stationery, and Forms $ 204Communication Equipment 7,174

Total Other Emergency Management 7,378

County Coroner/Medical ExaminerContracts with Government Agencies $ 43,680Contracts with Private Agencies 17,070Pauper Burials 600

Total County Coroner/Medical Examiner 61,350

Public Safety Grants ProgramPart-time Personnel $ 83,797

(Continued)

120

Exhibit I-6




Public Safety Grants Program (Cont.)Social Security $ 5,273Employer Medicare 1,233Liability Insurance 207Workers' Compensation Insurance 6,734Other Equipment 19,802

Total Public Safety Grants Program $ 117,046

Public Health and WelfareLocal Health Center

Communication $ 647Contracts with Government Agencies 46,371Dues and Memberships 423Janitorial Services 28,925Maintenance Agreements 249Maintenance and Repair Services - Buildings 2,419Postal Charges 412Custodial Supplies 1,926Drugs and Medical Supplies 565Natural Gas 1,329Office Supplies 2,876Utilities 20,787Building and Contents Insurance 3,752

Total Local Health Center 110,681

Rabies and Animal ControlSupervisor/Director $ 31,992Part-time Personnel 7,355Social Security 2,440Pensions 2,636Employer Medicare 571Advertising 945Communication 1,190Contracts with Private Agencies 1,539Legal Notices, Recording, and Court Costs 417Maintenance and Repair Services - Equipment 1,511Travel 4,319Animal Food and Supplies 2,077Diesel Fuel 150Natural Gas 1,444Office Supplies 250Utilities 5,371Building and Contents Insurance 220Liability Insurance 414Refunds 150Workers' Compensation Insurance 352Other Equipment 6,616

Total Rabies and Animal Control 71,959

(Continued)

121

Exhibit I-6



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

Ambulance/Emergency Medical ServicesAssistant(s) $ 62,604Supervisor/Director 54,987Equipment Operators 1,451,072Part-time Personnel 107,164Overtime Pay 781,976Other Salaries and Wages 32,703Social Security 149,043Pensions 197,420Employee and Dependent Insurance 239,202Employer Medicare 34,857Communication 8,690Contracts with Government Agencies 101,383Contracts with Private Agencies 37,998Data Processing Services 5,280Laundry Service 7,978Legal Notices, Recording, and Court Costs 1,123Licenses 2,830Maintenance and Repair Services - Buildings 2,978Maintenance and Repair Services - Equipment 17,141Maintenance and Repair Services - Vehicles 103,926Postal Charges 2,041Rentals 11,550Travel 678Diesel Fuel 92,774Drugs and Medical Supplies 129,352Food Supplies 439Gasoline 1,211Natural Gas 1,579Office Supplies 13,947Uniforms 8,805Utilities 9,564Other Supplies and Materials 5,493Building and Contents Insurance 425Liability Insurance 10,972Vehicle and Equipment Insurance 33,692Workers' Compensation Insurance 119,140In Service/Staff Development 300Furniture and Fixtures 2,700

Total Ambulance/Emergency Medical Services $ 3,845,017

Alcohol and Drug ProgramsGuidance Personnel $ 33,830Part-time Personnel 3,718Social Security 2,233Pensions 758Employer Medicare 522Medical and Dental Services 290

(Continued)

122

Exhibit I-6



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

Alcohol and Drug Programs (Cont.)Travel $ 1,100Office Supplies 2,000Workers' Compensation Insurance 117

Total Alcohol and Drug Programs $ 44,568

Sanitation ManagementWorkers' Compensation Insurance $ 8

Total Sanitation Management 8

Sanitation Education/InformationSupervisor/Director $ 32,878Social Security 1,952Pensions 2,709Employee and Dependent Insurance 4,730Employer Medicare 456Maintenance and Repair Services - Vehicles 345Travel 208Other Supplies and Materials 986Liability Insurance 207Workers' Compensation Insurance 634Other Charges 16,365

Total Sanitation Education/Information 61,470

Other Public Health and WelfareSocial Workers $ 45,348Medical Personnel 54,690Part-time Personnel 13,137Other Salaries and Wages 108,478Social Security 13,327Pensions 17,119Employee and Dependent Insurance 29,375Employer Medicare 3,117Maintenance and Repair Services - Equipment 1,092Travel 5,668Liability Insurance 1,767Workers' Compensation Insurance 4,098Criminal Investigation of Applicants - TBI 58

Total Other Public Health and Welfare 297,274

Social, Cultural, and Recreational ServicesSenior Citizens Assistance

Assistant(s) $ 30,763Supervisor/Director 42,275Part-time Personnel 49,585Educational Incentive - Official/Admin Officer 1,000Social Security 7,441Pensions 6,101

(Continued)

123

Exhibit I-6



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

Senior Citizens Assistance (Cont.)Employee and Dependent Insurance $ 14,299Employer Medicare 1,740Communication 4,652Contracts with Government Agencies 6,096Contracts with Private Agencies 13,304Dues and Memberships 147Licenses 1,980Maintenance Agreements 2,376Maintenance and Repair Services - Buildings 140Maintenance and Repair Services - Office Equipment 325Maintenance and Repair Services - Vehicles 1,102Postal Charges 644Rentals 2,400Travel 10,975Food Preparation Supplies 397Food Supplies 9,568Gasoline 1,404Natural Gas 1,026Office Supplies 515Utilities 9,778Other Supplies and Materials 3,628Building and Contents Insurance 104Liability Insurance 1,863Refunds 100Vehicle and Equipment Insurance 1,305Workers' Compensation Insurance 2,392In Service/Staff Development 930Office Equipment 1,937Other Equipment 147

Total Senior Citizens Assistance $ 232,439

LibrariesAssistant(s) $ 23,815Supervisor/Director 37,216Librarians 23,213Part-time Personnel 18,483Social Security 6,135Pensions 6,942Employee and Dependent Insurance 15,361Employer Medicare 1,435Communication 6,907Contracts with Other Public Agencies 20,000Maintenance Agreements 895Postal Charges 11Travel 928Instructional Supplies and Materials 2,698Library Books/Media 17,087

(Continued)

124

Exhibit I-6



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

Libraries (Cont.)Natural Gas $ 2,816Periodicals 192Utilities 7,984Other Supplies and Materials 1,294Building and Contents Insurance 1,899Liability Insurance 1,035Workers' Compensation Insurance 136Other Equipment 2,796

Total Libraries $ 199,278

Parks and Fair BoardsMaintenance and Repair Services - Buildings $ 6,500Natural Gas 1,500Utilities 12,400Building and Contents Insurance 2,656

Total Parks and Fair Boards 23,056

Other Social, Cultural, and RecreationalOther Supplies and Materials $ 16,976

Total Other Social, Cultural, and Recreational 16,976

Agriculture and Natural ResourcesAgricultural Extension Service

Communication $ 928Contracts with Government Agencies 118,391Licenses 38Postal Charges 1,000Rentals 3,826Building and Contents Insurance 1,315Vehicle and Equipment Insurance 52In Service/Staff Development 830Data Processing Equipment 379

Total Agricultural Extension Service 126,759

Soil ConservationSecretary(ies) $ 34,840Clerical Personnel 41,114Social Security 4,548Pensions 6,259Employee and Dependent Insurance 14,299Employer Medicare 1,064Communication 315Maintenance and Repair Services - Equipment 500Maintenance and Repair Services - Office Equipment 250Postal Charges 300Travel 1,000Office Supplies 473

(Continued)

125

Exhibit I-6



General Fund (Cont.)Agriculture and Natural Resources (Cont.)

Soil Conservation (Cont.)Other Supplies and Materials $ 189Building and Contents Insurance 1,315Liability Insurance 414Vehicle and Equipment Insurance 96Workers' Compensation Insurance 562

Total Soil Conservation $ 107,538

Flood ControlContracts with Government Agencies $ 51,150

Total Flood Control 51,150

Other OperationsTourism

Contributions $ 61,924Maintenance and Repair Services - Buildings 46Utilities 881Other Charges 182

Total Tourism 63,033

Industrial DevelopmentSupervisor/Director $ 76,500Social Security 4,643Pensions 6,304Employee and Dependent Insurance 7,500Employer Medicare 1,086Dues and Memberships 250Travel 11,822Other Supplies and Materials 1,928Liability Insurance 207Workers' Compensation Insurance 959

Total Industrial Development 111,199

Other Economic and Community DevelopmentPart-time Personnel $ 40,000Social Security 2,480Employer Medicare 580Communication 250Contributions 21,750Travel 1,216

Total Other Economic and Community Development 66,276

AirportAttendants $ 32,806Part-time Personnel 4,176Social Security 2,221Pensions 2,703Employee and Dependent Insurance 7,150

(Continued)

126

Exhibit I-6



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

Airport (Cont.)Employer Medicare $ 519Communication 3,508Dues and Memberships 330Legal Notices, Recording, and Court Costs 1,081Maintenance and Repair Services - Buildings 23,100Maintenance and Repair Services - Equipment 6,617Postal Charges 135Travel 634Remittance of Revenue Collected 1,961Permits 200Diesel Fuel 16,389Gasoline 22,082Office Supplies 673Utilities 11,262Building and Contents Insurance 5,342Liability Insurance 2,985Refunds 300Vehicle and Equipment Insurance 19Workers' Compensation Insurance 948Airport Improvement 4,980

Total Airport $ 152,121

Veterans' ServicesSupervisor/Director $ 31,598Part-time Personnel 9,009Social Security 2,518Employer Medicare 589Maintenance Agreements 821Rentals 865Travel 560Office Supplies 323Liability Insurance 414Workers' Compensation Insurance 408Office Equipment 2,399

Total Veterans' Services 49,504

Other ChargesBank Charges $ 907Evaluation and Testing 3,817Trustee's Commission 215,753Other Charges 6,538

Total Other Charges 227,015

Contributions to Other AgenciesContributions $ 23,500

Total Contributions to Other Agencies 23,500

(Continued)

127

Exhibit I-6



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

Employee BenefitsBonus Payments $ 9,315Social Security 554Life Insurance 1,393Unemployment Compensation 5,317Employer Medicare 130Fines, Assessments, and Penalties 3,263

Total Employee Benefits $ 19,972

COVID-19 Grant #1Other Charges $ 37,778

Total COVID-19 Grant #1 37,778

COVID-19 Grant #2Equipment Operators $ 1,898Part-time Personnel 485Overtime Pay 3,770Maintenance and Repair Services - Buildings 10,648

Total COVID-19 Grant #2 16,801

Total General Fund $ 17,525,965

Solid Waste/Sanitation FundPublic Health and Welfare

Sanitation ManagementSupervisor/Director $ 15,001Social Security 896Pensions 1,061Employer Medicare 209Communication 506Dues and Memberships 150Travel 112Office Supplies 190Building and Contents Insurance 99Liability Insurance 104Workers' Compensation Insurance 511In Service/Staff Development 100

Total Sanitation Management $ 18,939

Other Waste DisposalContracts with Private Agencies $ 43,079Trustee's Commission 622Other Charges 1,318

Total Other Waste Disposal 45,019

Total Solid Waste/Sanitation Fund 63,958

(Continued)

128

Exhibit I-6



Drug Control FundPublic Safety

Drug EnforcementTravel $ 310Animal Food and Supplies 2,279Other Supplies and Materials 5,444Trustee's Commission 458Other Charges 2,158Law Enforcement Equipment 20,500

Total Drug Enforcement $ 31,149

Total Drug Control Fund $ 31,149

Constitutional Officers - Fees FundAdministration of Justice

Chancery CourtConstitutional Officers' Operating Expenses $ 150

Total Chancery Court $ 150

Total Constitutional Officers - Fees Fund 150

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 95,000Accountants/Bookkeepers 63,050Board and Committee Members Fees 5,900Communication 1,147Data Processing Services 10,504Dues and Memberships 6,365Evaluation and Testing 1,059Janitorial Services 2,328Legal Notices, Recording, and Court Costs 720Maintenance and Repair Services - Office Equipment 3,629Postal Charges 576Printing, Stationery, and Forms 140Travel 728Drugs and Medical Supplies 140Electricity 10,333Natural Gas 629Office Supplies 2,152Water and Sewer 2,802In Service/Staff Development 440Other Charges 3,618

Total Administration $ 211,260

Highway and Bridge MaintenanceForemen $ 239,349Equipment Operators 323,397Laborers 264,602

(Continued)

129

Exhibit I-6



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

Highway and Bridge Maintenance (Cont.)Contracts with Private Agencies $ 277,826Rentals 3,350Asphalt - Liquid 650,149Concrete 540Crushed Stone 698,773Pipe 232,982Road Signs 7,275Small Tools 1,721Wood Products 43,587Other Supplies and Materials 2,269

Total Highway and Bridge Maintenance $ 2,745,820

Operation and Maintenance of EquipmentMechanic(s) $ 108,307Maintenance and Repair Services - Buildings 1,076Maintenance and Repair Services - Equipment 32,753Diesel Fuel 114,165Equipment and Machinery Parts 114,375Garage Supplies 9,436Gasoline 21,967Lubricants 10,586Small Tools 3,890Tires and Tubes 48,156Other Supplies and Materials 669Office Equipment 8,676

Total Operation and Maintenance of Equipment 474,056

Other ChargesLiability Insurance $ 44,000Trustee's Commission 57,967Workers' Compensation Insurance 44,997

Total Other Charges 146,964

Employee BenefitsSocial Security $ 64,947Pensions 87,701Employee and Dependent Insurance 196,247Life Insurance 1,220Employer Medicare 15,189

Total Employee Benefits 365,304

Capital OutlayBridge Construction $ 2,374,797Highway Construction 482,796Highway Equipment 624,354State Aid Projects 215,863

Total Capital Outlay 3,697,810

Total Highway/Public Works Fund $ 7,641,214

(Continued)

130

Exhibit I-6



General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Bonds $ 1,015,000

Total General Government $ 1,015,000

Interest on DebtGeneral Government

Interest on Bonds $ 301,590Total General Government 301,590

Other Debt ServiceGeneral Government

Bank Charges $ 5,410Trustee's Commission 24,502Underwriter's Discount 42,596Other Debt Issuance Charges 78,933

Total General Government 151,441

Total General Debt Service Fund $ 1,468,031

General Capital Projects FundPublic Safety

Sheriff's DepartmentMotor Vehicles $ 369,028

Total Sheriff's Department $ 369,028

Fire Prevention and ControlMotor Vehicles $ 457,800Other Equipment 52,845

Total Fire Prevention and Control 510,645

Public Health and WelfareAmbulance/Emergency Medical Services

Motor Vehicles $ 239,774Total Ambulance/Emergency Medical Services 239,774

Other OperationsAirport

Airport Improvement $ 522,084Total Airport 522,084

Capital ProjectsPublic Safety Projects

Building Improvements $ 28,688Heating and Air Conditioning Equipment 24,937Building Purchases 4,030

Total Public Safety Projects 57,655

Total General Capital Projects Fund 1,699,186

Total Governmental Funds - Primary Government $ 28,429,653

131

Exhibit I-7

Gibson County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balances - City Agency FundsFor the Year Ended June 30, 2020

SpecialCities School

Sales Tax DistrictFund Fund Total

Cash Receipts Local Option Sales Tax $ 6,610,826 $ 7,403,305 $ 14,014,131 Mixed Drink Tax 0 1,291 City/School District Property Taxes: Current Property Tax 0 14,291,665 14,291,665 Prior Year's Property Tax 0 485,735 485,735 Interest and Penalty 0 73,134 73,134 Payments in Lieu of Taxes - Other 0 79,196 79,196 Marriage Licenses 0 1,976 1,976 State Revenue Sharing -Telecommunications 0 58,138 58,138 Total Cash Receipts $ 6,610,826 $ 22,394,440 $ 29,003,975

Cash Disbursements Remittance of Revenues Collected $ 6,544,717 $ 22,018,220 $ 28,562,937 Trustee's Commission 66,109 371,652 437,761 Total Cash Disbursements $ 6,610,826 $ 22,389,872 $ 29,000,698

Excess of Cash Receipts Over (Under) Cash Disbursements $ 0 $ 4,568 $ 4,568 Cash Balance, July 1, 2019 0 44,778 44,778

Cash Balance, June 30, 2020 $ 0 $ 49,346 $ 49,346

132

SINGLE AUDIT SECTION

133

Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With

Government Auditing Standards




We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of Gibson County, Tennessee, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise Gibson County's basic financial statements, as listed in the table of contents, and have issued our report thereon dated October 23, 2020. Our report includes a reference to other auditors who audited the financial statements of the Gibson County Emergency Communications District, as described in our report on Gibson 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 Gibson County's internal control over financial reporting (internal control) as a basis for designing 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 Gibson County's internal control. Accordingly, we do not express an opinion on the effectiveness of Gibson County's internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we did identify certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

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

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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. We consider the following deficiency described in the accompanying Schedule of Findings and Questioned Costs to be a material weakness: 2020-003.

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. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies: 2020-001 and 2020-002.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Gibson 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 financial statements. 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Gibson County’s Responses to Findings

Gibson County’s responses to the findings identified in our audit are described in the accompanying Schedule of Findings and Questioned Costs. Gibson County’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Gibson County’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Very truly yours,


October 23, 2020

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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




Report on Compliance for Each Major Federal Program

We have audited Gibson 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 Gibson County’s major federal programs for the year ended June 30, 2020. Gibson 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 Gibson County’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Gibson County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.

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We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Gibson County’s compliance.

Opinion on Each Major Federal Program

In our opinion, Gibson 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, 2020.

Report on Internal Control Over Compliance

Management of Gibson 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 Gibson 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 Gibson County’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

We have audited the financial statements of the governmental activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of

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Gibson County, Tennessee, as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise Gibson County’s basic financial statements. We issued our report thereon dated October 23, 2020, 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,


October 23, 2020

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Gibson County, TennesseeSchedule of Expenditures of Federal Awards and State Grants (1) (2)For the Year Ended June 30, 2020

Pass-throughFederal Entity Amount

Federal/Pass-through Agency/State CFDA Identifying Passed-throughGrantor Program Title Number Number to Subrecipients

U.S. Department of Agriculture: Passed through State Department of Health: Special Supplemental Nutrition Program for Women, Infants, and Children 10.557 34360-16620 $ 0 $ 37,211 Direct Program: Long-term Standing Agreements for Storage, Transportation, and Lease 10.999 N/A 0 70,551Total U.S. Department of Agriculture $ 107,762

U.S. Department of Labor: Passed through State Department of Labor and Workforce Development: COVID 19 - Unemployment Insurance 17.225 N/A 0 $ 5,382Total U.S. Department of Labor $ 5,382

U. S. Department of Transportation: Passed-through State Department of Transportation: Airport Improvement Program 20.106 40100-22617 0 $ 516,101Total U.S. Department of Transportation $ 516,101

U.S. Institute of Museum and Library Services: Passed through Tennessee Secretary of State: Grants to States 45.310 30504-00517-59 0 $ 1,082Total U.S. Institute of Museum and Library Services $ 1,082

U.S. Department of Health and Human Services: Passed-through Northwest Tennessee Development District: Aging Cluster: (4) Special Programs for the Aging - Title III, Part B - Grants for Supportive Services and Senior Centers 93.044 (3) 0 $ 38,627 Passed-through State Department of Health: Family Planning Services 93.217 34360-16620 0 5,961 Health Center Program Cluster: (4) Health Center Program 93.224 34360-16620 0 79,055 National State Based Tobacco Control Programs 93.305 34360-16620 0 7,063 Preventive Health and Health Services Block Grant 93.758 34360-16620 0 7,798 Maternal and Child Health Services Block Grant to the States 93.994 34360-16620 0 10,736 Direct Program: COVID 19 - Public Health and Social Services Emergency Fund for Provider Relief 93.498 (3) 0 109,463Total U. S. Department of Health and Human Services $ 258,703

U.S. Department of Homeland Security: Passed-through State Department of Military: COVID 19 - Disaster Relief Fund - PPE 97.036 (3) 0 $ 28,334 Emergency Management Performance Grants 97.042 34101-03917 0 107,637Total U.S. Department of Homeland Security $ 135,971

Total Expenditures of Federal Awards $ 1,025,001

(Continued)

Expenditures

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Gibson County, TennesseeSchedule of Expenditures of Federal Awards and State Grants (1) (2) (Cont.)

FederalFederal/Pass-through Agency/State CFDAGrantor Program Title Number Contract Number

State Grants

Airport Maintenance Program - State Department of Transportation N/A 40100-45315 $ 28,185 Homemaker and Personal Care Services - Northwest Tennessee Development District N/A N/A 68,419 Victims of Crime Act - Office of Criminal Justice Programs N/A N/A 46,899 Drug Court Grant - State Department of Mental Health and Substance Abuse Services N/A N/A 44,561 High Visibility Law Enforcement Grant - State Department of Transportation N/A Z18THS121 3,332 Preventive Health and Human Services - State Department of Health N/A 34360-16620 134,822 Litter Grant - State Department of Transportation N/A N/A 23,591 Economic Development Partnership Funding - Tennessee Valley Authority N/A N/A 1,006 COVID 19 - PPE - State Department of Military N/A N/A 9,444

Total State Grants $ 360,259

CFDA - Catalog of Federal Domestic AssistanceN/A - Not Applicable

(4) Aging Cluster total $38,627; Health Center Program Cluster total $79,055.

(1) Presented in conformity with generally accepted accounting principles using the modified accrual basis of accounting.

(3) Information not available.(2) Gibson County elected not to use the 10% de minimus cost rate permitted by the Uniform Guidance.

Expenditures

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Gibson County, TennesseeSummary Schedule of Prior-year FindingsFor the Year Ended June 30, 2020

Fiscal Page Finding CFDAYear Number Number Number


2019 139 2019-001 N/A

2019 140 2019-002 N/A

There were no prior-year federal award findings to report.

Prior-year Federal Awards Findings

The Office had Purchasing Deficiencies Corrected

Employee Bonuses were not Subjected to Retirement Withholdings and the Required Employer Match. Also, the Bonuses and Applicable Withholdings and Employer Match were not Reported to the Tennessee Consolidated Retirement System

Government Auditing Standards require auditors to report the status of uncorrected findings from prior audits. Inaddition, OMB's Uniform Guidance requires auditees to report the status of all prior-year findings whethercorrected or not. Presented below are financial statement findings along with their current status from the AnnualFinancial Report for Gibson County, Tennessee, for the year ended June 30, 2020.

Prior-year Financial Statement Findings

Title of Finding Current Status

Corrected

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Financial Statements:

1. Our report on the financial statements of Gibson County is unmodified.

2. Internal Control Over Financial Reporting:

* Material weakness identified? YES

* 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 Number: 20.106 Airport Improvement Program

8. Dollar threshold used to distinguish between type A and Type B Programs: $750,000

9. Auditee qualified as low-risk auditee? NO

GIBSON COUNTY, TENNESSEE

SCHEDULE OF FINDINGS AND QUESTIONED COSTS


PART I, SUMMARY OF AUDITOR'S RESULTS

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PART II, FINDINGS RELATING TO THE FINANCIAL STATEMENTS

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 plan, whether related to the financial statements or federal awards, is presented separately in the Management’s Corrective Action Plan in the Single Audit Section of this report. Findings relating specifically to the audit of federal awards, if any, are separately presented under Part III, Findings and Questioned Costs for Federal Awards.


FINDING 2020-001 THE OFFICE HAD DEFICIENCIES RELATED TO THE ADMINISTRATION OF PAYROLL RESULTING IN CASH SHORTAGES OF $9,336 AT JUNE 30, 2020 (Internal Control – Significant Deficiency Under Government Auditing Standards)

Our audit revealed the following deficiencies related to the administration of payroll:

A. A former employee of the health department received four payroll checkstotaling $5,112, through direct deposit after her employment was terminatedon July 26, 2019. Gibson County had also paid the employer’s portion of SocialSecurity and Medicare totaling $397 and contributed $360 to the TennesseeConsolidated Retirement System (TCRS) related to these payments. OnOctober 29, 2019, the former employee paid back $1,930 of the overpayments.A summary of the cash shortage at June 30, 2020, is listed below:

CashDescription Shortage

Salary Overpayments $ 5,112 Employer's portion of Social Security and Medicare 397 Employer's TCRS contribution 360 Amount reimbursed (1,930)

Cash Shortage, June 30, 2020 $ 3,939

B. On December 14, 2019, a volunteer fireman was overpaid through directdeposit for 11 fire calls totaling $6,600. Gibson County had also paid theemployer’s portion of Social Security and Medicare on the overpaymenttotaling $505. On June 25, 2020, the volunteer fireman was terminated. As ofJune 30, 2020, he had repaid $1,708 of the overpayment. A summary of thecash shortage at June 30, 2020, is listed below:

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CashDescription Shortage

Fire call overpayment $ 6,600 Employer's portion of Social Security and Medicare 505 Amount reimbursed (1,708)

Cash Shortage, June 30, 2020 $ 5,397

C. As part of our auditing procedures for determining reasonable assurance thatpayroll was properly documented and approved and calculated correctly, weselected a sample of 26 payroll disbursements to examine time sheets andother supporting documentation. In 3 instances, gross pay had been incorrectlycalculated resulting in over and under-payments to employees.

These deficiencies resulted from errors made by the former payroll clerk. It should be noted that the former payroll clerk became aware of the overpayment noted in Part B of this finding on February 7, 2020, but failed to alert the county mayor of the issue. The error was discovered by the finance director on March 18, 2020. The other deficiencies noted in this finding were discovered subsequent to June 30, 2020, after the payroll clerk terminated employment. This finding has been reviewed with the district attorney general.

RECOMMENDATION

The county mayor should pursue collection of the cash shortages. Payroll disbursements should be calculated accurately, and errors should be corrected in a timely manner.

MANAGEMENT’S RESPONSE – DIRECTOR OF FINANCE

The previous payroll clerk responsible for these deficiencies is no longer on staff. A new payroll clerk has been hired, and the importance of accurately executing all aspects of payroll has been discussed, per policy and work instructions.

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FINDING 2020-002 GENERAL LEDGER PAYROLL DEDUCTION ACCOUNTS WERE NOT RECONCILED WITH PAYROLL REPORTS AND PAYMENTS IN THE GENERAL FUND (Internal Control – Significant Deficiency Under Government Auditing Standards)

General ledger payroll deduction accounts were not reconciled with payroll reports and payments in the General Fund. Sound business practices dictate that these reconciliations be performed monthly. The failure to regularly reconcile payroll liability accounts allows errors to remain undiscovered and uncorrected. This deficiency is the result of a lack of management oversight.

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RECOMMENDATION

General ledger payroll liability accounts should be reconciled monthly with payroll reports and payments, and any errors should be corrected promptly.

MANAGEMENT’S RESPONSE – DIRECTOR OF FINANCE

The payroll deduction accounts have carried balances for years. These accounts will be reconciled to the payrolls executed to clear out all prior balances. All payroll deduction accounts are now reconciled with payments in the General Fund at each month end.

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FINDING 2020-003 THE HIGHWAY/PUBLIC WORKS FUND REQUIRED MATERIAL AUDIT ADJUSTMENTS FOR PROPER FINANCIAL STATEMENT PRESENTATION (Internal Control – Material Weakness Under Government Auditing Standards)

At June 30, 2020, certain general ledger account balances in the Highway/Public Works Fund were not materially correct, and audit adjustments totaling $518,155 were required for the financial statements to be materially correct at year-end. Generally accepted accounting principles require the highway department to have adequate internal controls over the maintenance of its accounting records. Material audit adjustments were required because the department’s financial reporting system did not prevent, detect, or correct potential misstatements in the accounting records. It is a strong indicator of a material weakness in internal controls if the county has ineffective controls over the maintenance of its accounting records, which are used to prepare the financial statements, including the related notes to the financial statements. This deficiency is the result of a lack of management oversight. We presented audit adjustments to management that they approved and posted to properly present the financial statements in this report.

RECOMMENDATION

The highway department should have appropriate processes in place to ensure its general ledgers are materially correct.

MANAGEMENT’S RESPONSE – ROAD SUPERVISOR

We concur with the finding. We will implement the appropriate processes to ensure that the general ledger account balances are materially correct.

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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, 2020.

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FindingNumber


2020-001

2020-002


2020-003

General Ledger Payroll Deduction Accounts were not Reconciled with Payroll Reports and Payments in the General Fund

The Highway/Public Works Fund Required Material Audit Adjustments for Proper Financial Statement Presentation

148The Office had Deficiencies Related to the Administration of Payroll Resulting in Cash Shortages of $9,336 at June 30, 2020

148-149

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We reviewed the financial statement and federal award findings and recommendations with management to provide anopportunity for their response as required by the auditee requirements within Title 2 U.S. Code of Federal RegulationsPart 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Management’s corrective action plans for all financial statement findings and federal award findings arepresented in this section and have been indexed below. The corrective action plans were prepared by management andhave been presented as they were submitted.

Gibson County, TennesseeManagement's Corrective Action Plan


Title of FindingCorrective Action

Plan Page Number

147

Tom Witherspoon County Mayor

GIBSON COUNTY COURTHOUSE

Corrective Action Plan

Telephone: 731-855.7613 Trenton, Tennessee 38382

FINDING: THE OFFICE HAD DEFICIENCIES RELATED TO THE ADMINISTRATION OF PAYROLL RESULTING IN CASH SHORTAGES OF $9,336 AT JUNE 30, 2020

Response and Corrective Action Plan Prepared by: Jenny Skelton, Director of Finance

Person Responsible for Implementing the Corrective Action: Jenny Skelton, Director of Finance Wendy Richardson, Payroll Clerk

Anticipated Completion Date of Corrective Action: 07/01/2020

Repeat Finding:

No

Planned Corrective Action:

The previous payroll clerk responsible for the deficiencies in payroll is no longer on staff at Gibson County

Government. There was a new payroll clerk hired, and the importance of accurately executing all aspects

of payroll has been discussed with this payroll clerk, per policy and work instructions.

FINDING: GENERAL LEDGER PAYROLL DEDUCTION ACCOUNTS WERE NOT RECONCILED WITH PAYROLL REPORTS AND PAYMENTS IN THE GENERAL FUND

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Gibson County Highway Department

FINDING:

1244 Manufacturers Row

Trenton, TN 38382

Corrective Action Plan

THE HIGHWAY/PUBLIC WORKS FUND REQUIRED

MATERIAL AUDIT ADJUSTMENTS FOR PROPER

FINANCIAL STATEMENT PRESENTATION

Response and Corrective Action Plan Prepared by:

Carl E. Stoppenhagen, Superintendent

Person Responsible for Implementing the Corrective Action:

Donna Cunningham, Office Manager

Anticipated Completion Date of Corrective Action:

October 16, 2020

Repeat Finding:

No

Planned Corrective Action: The highway department concurs with the finding. We will implement the appropriate

processes to ensure that the general ledger account balances are materially correct.

Signature:

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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 Gibson County.

GIBSON COUNTY SHOULD ADOPT A CENTRAL SYSTEM OF ACCOUNTING, BUDGETING, AND PURCHASING

Gibson County does not have a central system of accounting, budgeting, and purchasing. Sound business practices dictate that establishing a central system would significantly improve internal controls over the accounting, budgeting, and purchasing processes. The absence of a central system of accounting, budgeting, and purchasing has been a management decision by the county commission resulting in decentralization and some duplication of effort. We recommend the adoption of the County Financial Management System of 1981 or a private act, which would provide for a central system of accounting, budgeting, and purchasing covering all county departments.

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