FY16 Maury AFR

ANNUAL FINANCIAL REPORT
MAURY COUNTY, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2016
DIVISION OF LOCAL GOVERNMENT AUDIT

ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2016
COMPTROLLER OF THE TREASURY

JUSTIN P. WILSON

JAMES R. ARNETTE
Director
JEFF BAILEY, CPA, CGFM, CFE MARK HARVILL, CFE

Audit Manager KINSLEY HAYES
CHRIS HUGHES
KENT WHITE, CPA, CGFM, CFE JACOB KENNEDY, CISA
Auditor 4 State Auditors
This financial report is available at www.comptroller.tn.gov
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TABLE OF CONTENTS
Exhibit Page(s)
Summary of Audit Findings 6
INTRODUCTORY SECTION 7
Maury County Officials 8
FINANCIAL SECTION 9
Independent Auditor's Report 10-13

BASIC FINANCIAL STATEMENTS: 14
Government-wide Financial Statements:
Statement of Net Position A 15-17
Statement of Activities B 18-19
Fund Financial Statements:
Governmental Funds:
Balance Sheet C-1 20-22
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position C-2 23
Statement of Revenues, Expenditures, and Changes in
Fund Balances C-3 24-25
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities C-4 26-27
Statement of Revenues, Expenditures, and Changes in Fund
Balance Actual (Budgetary Basis) and Budget:
General Fund C-5 28-30
Proprietary Funds:
Statement of Net Position D-1 31-32
Statement of Revenues, Expenses, and Changes in Net Position D-2 33
Statement of Cash Flows D-3 34-35
Fiduciary Funds:
Statement of Fiduciary Assets and Liabilities E 36
Index and Notes to the Financial Statements 37-119
REQUIRED SUPPLEMENTARY INFORMATION: 120
Schedule of Changes in Net Pension Liability (Asset) and Related Ratios
Based on Participation in the Public Employee Pension Plan
of TCRS Primary Government F-1 121
Schedule of Contributions Based on Participation in the Public Employee
Pension Plan of TCRS Primary Government F-2 122
Schedule of Contributions Based on Participation in the Teacher
Retirement Plan of TCRS Discretely Presented Maury
County School Department F-3 123
3
Exhibit Page(s)

Legacy Pension Plan of TCRS Discretely Presented Maury
County School Department F-4 124
Schedule of Proportionate Share of the Net Pension Asset in the
Teacher Retirement Pension Plan of TCRS Discretely Presented
Maury County School Department F-5 125
Schedule of Proportionate Share of the Net Pension Asset in the
Teacher Legacy Pension Plan of TCRS Discretely Presented
Maury County School Department F-6 126
Schedule of Funding Progress Other Postemployment Benefits
Plan Discretely Presented Maury County School Department F-7 127
Notes to the Required Supplementary Information 128
COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES: 129
Nonmajor Governmental Funds: 130-131
Combining Balance Sheet G-1 132-135
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances G-2 136-139
Schedules of Revenues, Expenditures, and Changes in Fund
Balances Actual (Budgetary Basis) and Budget:
Drug Control Fund G-3 140
Adequate Facilities/Development Tax Fund G-4 141
Highway/Public Works Fund G-5 142
Other Capital Projects Fund G-6 143
Major Governmental Fund: 144
Schedule of Revenues, Expenditures, and Changes in Fund
Balance Actual and Budget:
General Debt Service Fund H 145
Fiduciary Funds: 146
Combining Statement of Fiduciary Assets and Liabilities I-1 147
Combining Statement of Changes in Assets and Liabilities
All Agency Funds I-2 148
Component Unit:
Discretely Presented Maury County School Department: 149
Statement of Activities J-1 150
Balance Sheet Governmental Funds J-2 151-152
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position J-3 153
Balances Governmental Funds J-4 154-155
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities J-5 156
Combining Balance Sheet Nonmajor Governmental Funds J-6 157
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances Nonmajor Governmental Funds J-7 158
Schedules of Revenues, Expenditures, and Changes in Fund
Balances Actual (Budgetary Basis) and Budget:
General Purpose School Fund J-8 159-160
School Federal Projects Fund J-9 161
Central Cafeteria Fund J-10 162
4
Exhibit Page(s)
Miscellaneous Schedules: 163

Schedule of Changes in Long-term Notes, Other Loans, and Bonds K-1 164
Schedule of Long-term Debt Requirements by Year K-2 165-166
Schedule of Investments K-3 167
Schedule of Transfers Primary Government and Discretely
Presented Maury County School Department K-4 168
Schedule of Salaries and Official Bonds of Principal Officials
Primary Government and Discretely Presented Maury
County School Department K-5 169
Schedule of Detailed Revenues All Governmental Fund Types K-6 170-183
Schedule of Detailed Revenues All Governmental Fund Types
Discretely Presented Maury County School Department K-7 184-187
Schedule of Detailed Expenditures All Governmental Fund Types K-8 188-215
Schedule of Detailed Expenditures All Governmental Fund Types
Discretely Presented Maury County School Department K-9 216-230
Schedule of Detailed Revenues and Expenses Central Maintenance/
Garage Fund (Internal Service Fund) K-10 231-232
Schedule of Detailed Revenues and Expenses Solid Waste
Disposal Fund (Enterprise Fund) K-11 233-236
Schedule of Detailed Receipts, Disbursements, and Changes in
Cash Balance City Agency Fund K-12 237
SINGLE AUDIT SECTION 238
Auditor's Report on Internal Control Over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government
Auditing Standards 239-240
Auditor's 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 Uniform Guidance 241-243
Schedule of Expenditures of Federal Awards and State Grants 244-245
Summary Schedule of Prior-year Findings 246
Schedule of Findings and Questioned Costs 247-259
Management's Corrective Action Plan 260-265
Best Practice 266
5
Summary of Audit Findings
Annual Financial Report
Maury County, Tennessee
For the Year Ended June 30, 2016
Scope
We have audited the basic financial statements of Maury County as of and for the year
ended June 30, 2016.
Results
Our report on the financial statements of Maury County is unmodified.
Our audit resulted in nine findings and recommendations, which we have reviewed with
Maury County management. Detailed findings, recommendations, and managements
responses are included in the Single Audit section of this report.
Findings
The following are summaries of the audit findings:
OFFICE OF DIRECTOR OF ACCOUNTS AND BUDGETS
Material audit adjustments were required for proper financial statement presentation.
The office had weaknesses in posting financial transactions.
The office had deficiencies in budget operations.
OFFICES OF DIRECTOR OF ACCOUNTS AND BUDGETS AND TRUSTEE
Numerous reconciling differences between the funds maintained by the director of

accounts and budgets and the trustee were not corrected.
OFFICE OF DIRECTOR OF SCHOOLS
Material audit adjustments were required for proper financial statement presentation.
The office had deficiencies in budget operations.
The office had deficiencies in payroll procedures.
Deficiencies were noted in the maintenance of capital assets records.
Accrued leave records were not maintained adequately.
6
INTRODUCTORY SECTION
7
Maury County Officials
June 30, 2016
Officials
Charlie Norman, County Mayor

Van Boshers, Road Superintendent
Christopher Marczak, Director of Schools
Steve Konz, Trustee
Jim Dooley, Assessor of Property
Joey Allen, County Clerk
Sandy McLain, Circuit and General Sessions Courts Clerk
Larry Roe, Jr., Clerk and Master
John Fleming, Register of Deeds
Bucky Rowland, Sheriff
Theresa L. Weber, CPA, Director of Accounts and Budgets
Dana Gibson, Director of Human Resources
Buddy Harlan, Purchasing Agent
Board of County Commissioners
Sonny Shackelford, Chairman Stewart Parker

Gerald Adkison Terry Potts
Ronald Attkisson Eric Previti
Talvin Barner William Roddy
Davis Burkhalter Ricky Sims
Donna Cook Sue Stephenson
Gwynne Evans Gary Stovall
Michael Fulbright Scott Sumners
Craig Harris Debbie Turner
Steve Hazard Linda Whiteside
Don Morrow Tommy Wolaver
Board of Education
David Bates, Chairman Jim Morrison

Howard Beaver David Moore
Tommy Dudley Kristin Parker
Jerry Lassiter James Pennings
Richard Wayne Lindsey Carey Powers
Jyuana Martin
Budget Committee
Davis Burkhalter, Chairman Stewart Parker

Donna Cook Sonny Shackleford
Gwynn Evans Tommy Wolaver
Audit Committee
Kelley McCall, Chairperson
Karynda Barner Eric Previti
Craig Harris Debbie Turner
8
FINANCIAL SECTION
9
STATE OF TENNESSEE
DEPARTMENT OF AUDIT
SUITE 1500
JAMES K. POLK STATE OFFICE BUILDING
NASHVILLE, TENNESSEE 37243-1402
PHONE (615) 401-7841
Independent Auditor's Report
Maury County Mayor and

To the County Mayor and County Commissioners:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of Maury County, Tennessee, as of and
for the year ended June 30, 2016, and the related notes to the financial statements, which
collectively comprise the countys 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 Maury Regional Hospital (major proprietary
fund), which represent 98 percent, 98 percent, and 99 percent, respectively, of the assets, net
position, and revenues of the business-type activities; or the Maury County Board of Public
Utilities Water System, a discretely presented component unit. Those statements were
audited by other auditors whose reports have been furnished to us, and our opinion, insofar
as it relates to the amounts included for the Maury Regional Hospital and the Maury County
Board of Public Utilities Water System, is based solely on the reports of the other auditors.
10
We were unable to determine Maury County Board of Public Utilities Water Systems
respective percentage of the assets, net position, and revenues of the aggregate discretely
presented component units because the Maury County Emergency Communications District,
a component unit requiring discrete presentation, was not included in the countys financial
statements. 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 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 business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of Maury
County, Tennessee, as of June 30, 2016, and the respective changes in financial position and,
where applicable, cash flows thereof and the budgetary comparisons for the General Fund
for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Change in Accounting Principle
As described in Note V.B., Maury County has adopted the provisions of Governmental
Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and
Application; GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting
Principles for State and Local Governments; GASB Statement No. 73, Accounting and
Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB
Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and
No. 68; and GASB Statement No. 79, Certain External Investment Pools and Pool
Participants. Our opinion is not modified with respect to these matters.
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Other Matters
Required Supplementary Information
Management has omitted the managements discussion and analysis that accounting
principles generally accepted in the United States of America require to be presented to
supplement the basic financial statements. Such missing information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. Our
opinion on the basic financial statements is not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the
schedule of changes in the countys net pension liability and related ratios, schedules of
county and school contributions, schedule of schools proportionate share of the net pension
liability, and schedule of funding progress - other postemployment benefits plan on pages
121-128 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 managements 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 Maury Countys basic financial statements. The introductory section,
combining and individual nonmajor fund financial statements, budgetary comparison
schedules of nonmajor governmental funds and the General Debt Service Fund, combining
and individual fund financial statements of the Maury County School Department (a
discretely presented component unit), and miscellaneous schedules are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements, budgetary comparison
discretely presented component unit), 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
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in accordance with auditing standards generally accepted in the United States of America.
In our opinion, based on our audit and the procedures performed as described above, the
combining and individual nonmajor fund financial statements, budgetary comparison
discretely presented component unit), and miscellaneous schedules are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The introductory section has not been subjected to the auditing procedures applied in the
audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 8, 2017, on our consideration of Maury Countys 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 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 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 Maury Countys internal
control over financial reporting and compliance.
Very truly yours,
Justin P. Wilson
Comptroller of the Treasury
Nashville, Tennessee
February 8, 2017
JPW/yu
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BASIC FINANCIAL STATEMENTS
14
Exhibit A

Statement of Net Position
June 30, 2016
Component Units
Primary Government Maury Board of
Business- County Public Utilities
Governmental type School Water
Activities Activities Total Department System
ASSETS
Cash $ 66,871 $ 51,841,872 $ 51,908,743 $ 3,500 $ 4,868,242

Equity in Pooled Cash and Investments 32,327,438 0 32,327,438 39,449,106 0
Certificates of Deposit 0 323,783 323,783 0 0
Investments 0 1,988,553 1,988,553 0 3,027,237
Accounts Receivable 949,942 65,302,490 66,252,432 75,901 259,142
Other Receivable 0 6,628,035 6,628,035 0 0
Allowance for Uncollectibles 0 (30,000,000) (30,000,000) 0 0
Property Taxes Receivable 25,720,283 1,827,827 27,548,110 22,144,591 0
Allowance for Uncollectible Property Taxes (591,415) 0 (591,415) (549,278) 0
Accrued Interest Receivable 0 0 0 0 10,673
Due from Other Governments 1,867,287 21,419 1,888,706 3,490,651 0
Due from Affiliates 0 507,095 507,095 0 0
Prepaid Items 40,552 3,884,663 3,925,215 0 0
Inventories 0 4,867,202 4,867,202 98,465 44,245
Net Pension Asset - Agent Plan 1,631,107 74,180 1,705,287 1,135,334 16,474
Net Pension Asset - Teacher Retirement Plan 0 0 0 43,863 0
Assets Limited as to Use 0 63,123,459 63,123,459 0 0
Interest in Joint Ventures 0 259,199 259,199 0 0
Restricted Assets:
Customer Deposits 0 0 0 0 33,850
Capital Assets:
Assets Not Depreciated:
Land 7,571,942 8,475,039 16,046,981 3,019,949 437,552
Intangibles 1,098,294 0 1,098,294 0 0
Construction in Progress 405,145 8,966,783 9,371,928 36,873,919 39,433
Assets Net of Accumulated Depreciation:
Buildings and Improvements 28,204,408 66,471,312 94,675,720 93,358,775 1,792,854
Infrastructure 43,039,053 0 43,039,053 0 21,882,619
Other Capital Assets 1,857,787 33,803,740 35,661,527 3,723,511 335,815
Total Assets $ 144,188,694 $ 288,366,651 $ 432,555,345 $ 202,868,287 $ 32,748,136
(Continued)
15
Exhibit A

Statement of Net Position (Cont.)
Component Units
DEFERRED OUTFLOWS OF RESOURCES
Pension Changes in Experience $ 194,225 $ 284,145 $ 478,370 $ 520,445 $ 1,962

Pension Changes in Investment Earnings 0 3,854,601 3,854,601 0 0
Pension Changes in Contributions After Measurement Date 676,372 0 676,372 4,497,102 26,664
Pension Changes in Proportionate Share of NPL 0 30,760 30,760 108,223 0
Deferred Amount on Refunding 1,995,418 183,709 2,179,127 0 0
Total Deferred Outflows of Resources $ 2,866,015 $ 4,353,215 $ 7,219,230 $ 5,125,770 $ 28,626
LIABILITIES
Accounts Payable $ 388,889 $ 14,156,216 $ 14,545,105 $ 76,971 $ 33,151

Accrued Payroll 20,552 3,813,210 3,833,762 8,279 19,568
Payroll Deductions Payable 352,649 14,923 367,572 320,267 0
Compensated Absences Payable 0 7,152,793 7,152,793 0 22,231
Accrued Interest Payable 672,995 321,620 994,615 0 0
Contracts Payable 257,929 0 257,929 1,880,914 0
Retainage Payable 0 0 0 35,000 0
Due to Litigants, Heirs, and Others 372 0 372 0 0
Customer Deposits Payable 0 0 0 0 33,850
Due to State of Tennessee 3,295 686 3,981 0 0
Other Current Liabilities 1,098,050 0 1,098,050 0 0
Current Liabilities Payable from Restricted Assets 740 0 740 0 0
Other Funds Due State 15,571 0 15,571 0 0
County Drug Court Fees 20,000 0 20,000 0 0
Other Long-term Liabilities 9,800 0 9,800 0 0
Noncurrent Liabilities:
Due Within One Year 8,479,653 4,055,876 12,535,529 1,262,833 323,237
Due in More Than One Year 96,526,698 48,668,393 145,195,091 15,731,504 5,930,169
Total Liabilities $ 107,847,193 $ 78,183,717 $ 186,030,910 $ 19,315,768 $ 6,362,206
(Continued)
16
Exhibit A

Component Units
DEFERRED INFLOWS OF RESOURCES
Deferred Current Property Taxes $ 24,566,676 $ 1,821,543 $ 26,388,219 $ 21,040,474 $ 0

Pension Changes in Experience 196,835 50,223 247,058 7,623,215 1,988
Pension Changes in Investment Earnings 373,439 16,983 390,422 3,355,691 3,771
Pension Changes in Proportionate Share of NPL 0 0 0 74,596 0
Total Deferred Inflows of Resources $ 25,136,950 $ 1,888,749 $ 27,025,699 $ 32,093,976 $ 5,759
NET POSITION
Net Investment in Capital Assets $ 74,929,358 $ 94,774,553 $ 169,703,911 $ 136,976,154 $ 18,234,867

Restricted for:
Capital Projects 4,008,396 0 4,008,396 0 0
Debt Service 13,881,842 0 13,881,842 0 1,650,000
Highway/Public Works 2,525,896 0 2,525,896 0 0
Central Maintenance Garage 820,123 0 820,123 0 0
General Government 182,611 0 182,611 0 0
Finance 27,338 0 27,338 0 0
Administration of Justice 266,669 0 266,669 0 0
Public Safety 393,051 0 393,051 0 0
Public Health and Welfare 2,815 0 2,815 0 0
Education 0 0 0 27,893,968 0
Other Purposes 1,594,102 74,180 1,668,282 0 16,474
Unrestricted (84,561,635) 117,798,667 33,237,032 (8,285,809) 6,507,456
Total Net Position $ 14,070,566 $ 212,647,400 $ 226,717,966 $ 156,584,313 $ 26,408,797
The notes to the financial statements are an integral part of this statement.
17
Exhibit B

Statement of Activities
Net (Expense) Revenue and Changes in Net Position

Program Revenues Component Units
Operating Capital Maury Board of
Charges Grants Grants Primary Government County Public Utilities
for and and Governmental Business-type School Water
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Department System
Primary Government:
Governmental Activities:
General Government $ 4,069,106 $ 1,204,563 $ 74,296 $ 0 $ (2,790,247) $ 0 $ (2,790,247) $ 0 $ 0
Finance 3,014,977 2,525,618 51,132 0 (438,227) 0 (438,227) 0 0
Administration of Justice 2,464,629 1,869,667 9,000 0 (585,962) 0 (585,962) 0 0
Public Safety 12,482,887 2,486,736 864,556 0 (9,131,595) 0 (9,131,595) 0 0
Public Health and Welfare 3,613,108 80,046 1,370,598 0 (2,162,464) 0 (2,162,464) 0 0
Social, Cultural, and Recreational Services 1,422,846 46,170 37,824 0 (1,338,852) 0 (1,338,852) 0 0
Agriculture and Natural Resources 142,474 0 0 0 (142,474) 0 (142,474) 0 0
Highway/Public Works 2,194,373 56,673 2,466,870 662,051 991,221 0 991,221 0 0
Education 1,881,160 838,228 359,994 0 (682,938) 0 (682,938) 0 0
Interest on Long-term Debt 3,612,459 0 749,201 0 (2,863,258) 0 (2,863,258) 0 0
Other Debt Service 657,684 0 0 0 (657,684) 0 (657,684) 0 0
Total Governmental Activities $ 35,555,703 $ 9,107,701 $ 5,983,471 $ 662,051 $ (19,802,480) $ 0 $ (19,802,480) $ 0 $ 0
Business-type Activities:
Maury Regional Hospital $ 319,869,940 $ 331,698,701 $ 0 $ 0 $ 0 $ 11,828,761 $ 11,828,761 $ 0 $ 0
Solid Waste Disposal 3,558,532 1,990,011 0 0 0 (1,568,521) (1,568,521) 0 0
Total Business-type Activities $ 323,428,472 $ 333,688,712 $ 0 $ 0 $ 0 $ 10,260,240 $ 10,260,240 $ 0 $ 0
Total Primary Government $ 358,984,175 $ 342,796,413 $ 5,983,471 $ 662,051 $ (19,802,480) $ 10,260,240 $ (9,542,240) $ 0 $ 0
Component Units:
Maury County School Department $ 99,980,353 $ 2,040,640 $ 13,651,021 $ 734,470 $ 0 $ 0 $ 0 $ (83,554,222) $ 0
Board of Public Utilities Water System 3,646,800 4,236,774 0 0 0 0 0 0 589,974
Total Component Units $ 103,627,153 $ 6,277,414 $ 13,651,021 $ 734,470 $ 0 $ 0 $ 0 $ (83,554,222) $ 589,974
(Continued)
18
Exhibit B

Statement of Activities (Cont.)
Net (Expense) Revenue and Changes in Net Position

Program Revenues Component Units
Operating Capital Maury Board of
Charges Grants Grants Primary Government County Public Utilities
for and and Governmental Business-type School Water
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Department System
General Revenues:
Taxes:
Property Taxes Levied for General Purposes $ 15,288,078 $ 1,912,721 $ 17,200,799 $ 22,596,147 $ 0
Property Taxes Levied for Debt Service 7,582,663 0 7,582,663 0 0
Local Option Sales Tax 374,549 0 374,549 14,100,601 0
Hotel/Motel Tax 843,343 0 843,343 0 0
Wheel Tax 2,064,577 0 2,064,577 0 0
Litigation Tax - General 444,196 0 444,196 0 0
Litigation Tax - Jail 433,031 0 433,031 0 0
Business Tax 1,219,034 0 1,219,034 0 0
Mixed Drink Tax 0 0 0 123,223 0
Mineral Severance Tax 127,023 0 127,023 0 0
Adequate Facilities/Development Tax 1,304,760 0 1,304,760 0 0
Wholesale Beer Tax 379,092 0 379,092 0 0
Interstate Telecommunications Tax 0 0 0 7,432 0
Other Local Taxes 1,409 0 1,409 0 0
Grants and Contributions Not Restricted to Specific Programs 4,844,506 2,536,421 7,380,927 51,030,304 0
Unrestricted Investment Earnings 702,656 1,275,169 1,977,825 10,655 33,116
Insurance Recoveries 0 0 0 110,447 0
Miscellaneous 306,204 0 306,204 97,710 0
Gain on Sale of Capital Assets 29,904 0 29,904 49,337 0
Total General Revenues $ 35,945,025 $ 5,724,311 $ 41,669,336 $ 88,125,856 $ 33,116
Change in Net Position $ 16,142,545 $ 15,984,551 $ 32,127,096 $ 4,571,634 $ 623,090

Net Position, July 1, 2015 (2,071,979) 196,662,849 194,590,870 152,012,679 25,785,707
Net Position, June 30, 2016 $ 14,070,566 $ 212,647,400 $ 226,717,966 $ 156,584,313 $ 26,408,797
19
Exhibit C-1

Balance Sheet
Governmental Funds
June 30, 2016
Nonmajor
Funds
Major Funds Other
General Govern- Total
Debt mental Governmental
General Service Funds Funds
ASSETS
Cash $ 1,946 $ 0 $ 64,925 $ 66,871

Equity in Pooled Cash and Investments 11,662,075 12,235,197 7,839,513 31,736,785
Accounts Receivable 648,931 137,234 80,240 866,405
Due from Other Governments 1,210,097 0 657,190 1,867,287
Property Taxes Receivable 12,284,854 9,310,428 4,125,001 25,720,283
Allowance for Uncollectible Property Taxes (291,161) (203,943) (96,311) (591,415)
Prepaid Items 0 40,552 0 40,552
Total Assets $ 25,516,742 $ 21,519,468 $ 12,670,558 $ 59,706,768
LIABILITIES
Accounts Payable $ 113,409 $ 0 $ 275,299 $ 388,708

Accrued Payroll 20,552 0 0 20,552
Payroll Deductions Payable 304,698 0 40,958 345,656
Contracts Payable 0 0 257,929 257,929
Due to State of Tennessee 2,826 0 420 3,246
Due to Litigants, Heirs, and Others 0 0 372 372
Other Current Liabilities 0 0 1,098,050 1,098,050
Current Liabilities Payable From Restricted Assets 740 0 0 740
Other Funds Due State 15,571 0 0 15,571
County Drug Court Fee 20,000 0 0 20,000
Other Long-term Liabilities 9,800 0 0 9,800
Total Liabilities $ 487,596 $ 0 $ 1,673,028 $ 2,160,624
(Continued)
20
Exhibit C-1

Balance Sheet
Governmental Funds (Cont.)
Nonmajor
Funds
Major Funds Other
Deferred Current Property Taxes $ 11,713,653 $ 8,919,497 $ 3,933,526 $ 24,566,676

Deferred Delinquent Property Taxes 242,564 161,615 78,973 483,152
Other Deferred/Unavailable Revenue 695,527 0 256,351 951,878
Total Deferred Inflows of Resources $ 12,651,744 $ 9,081,112 $ 4,268,850 $ 26,001,706
FUND BALANCES
Nonspendable:
Prepaid Items $ 0 $ 40,552 $ 0 $ 40,552
Restricted:
Restricted for General Government 182,611 0 2,345,525 2,528,136
Restricted for Finance 27,338 0 0 27,338
Restricted for Administration of Justice 266,669 0 0 266,669
Restricted for Public Safety 67,546 5,947,429 325,505 6,340,480
Restricted for Public Health and Welfare 2,815 0 0 2,815
Restricted for Highways/Public Works 0 0 2,300,772 2,300,772
Restricted for Capital Outlay 0 0 1,118,094 1,118,094
Restricted for Debt Service 0 6,450,375 0 6,450,375
Committed:
Committed for General Government 95,403 0 122,067 217,470
Committed for Finance 25,760 0 0 25,760
Committed for Public Safety 48,715 0 353,978 402,693
Committed for Public Health and Welfare 42,711 0 0 42,711
Committed for Social, Cultural, and Recreational Services 3,171 0 162,739 165,910
Assigned:
Assigned for General Government 72,054 0 0 72,054
(Continued)
21
Exhibit C-1

Balance Sheet
Nonmajor
Funds
Major Funds Other
FUND BALANCES (Cont.)
Assigned (Cont.):
Assigned for Finance $ 13,738 $ 0 $ 0 $ 13,738
Assigned for Administration of Justice 9,893 0 0 9,893
Assigned for Public Safety 163,163 0 0 163,163
Assigned for Public Health and Welfare 23,790 0 0 23,790
Assigned for Social, Cultural, and Recreational Services 123,924 0 0 123,924
Assigned for Capital Outlay 100 0 0 100
Unassigned 11,208,001 0 0 11,208,001
Total Fund Balances $ 12,377,402 $ 12,438,356 $ 6,728,680 $ 31,544,438
Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 25,516,742 $ 21,519,468 $ 12,670,558 $ 59,706,768
22
Exhibit C-2

Reconciliation of the Balance Sheet of Governmental Funds to
the Statement of Net Position
June 30, 2016
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) $ 31,544,438
(1) Capital assets used in governmental activities are not

financial resources and therefore are not reported in
the governmental funds.
Add: land $ 7,571,942
Add: intangibles 1,098,294
Add: construction in progress 405,145
Add: buildings and improvements net of accumulated depreciation 28,204,408
Add: infrastructure net of accumulated depreciation 43,039,053
Add: other capital assets net of accumulated depreciation 1,857,787
Less: capital assets of the internal service fund that are also
included in item (2) below (128,887) 82,047,742
(2) An internal service fund is used by management to charge the

costs of a central maintenance garage to individual
funds. The assets and liabilities of the internal service fund
are included in governmental activities in the statement
of net position. 820,123
(3) Long-term liabilities are not due and payable in the

current period and therefore are not reported in the
governmental funds.
Less: notes payable $ (2,685,993)
Less: other loans payable (3,078,582)
Less: bonds payable (89,865,000)
Add: deferred amount on refunding 1,995,418
Less: compensated absences payable (1,302,773)
Add: compensated absences payable of the internal service
fund included in item (2) above 19,549
Less: accrued interest on bonds and notes (672,995)
Less: unamortized premium on debt (8,074,003) (103,664,379)
(4) Amounts reported as deferred outflows of resources and deferred

inflows of resources related to pensions will be amortized and
recognized as components of pension expense in future years:
Add: deferred outflows of resources related to pensions $ 870,597
Less: deferred inflows of resources related to pensions (570,274) 300,323
(5) Net pension assets of the agent plan are not current financial
resources and therefore are not reported in the governmental funds.
Add: net pension assets of governmental activities $ 1,631,107
Less: net pension position of internal service fund (43,818) 1,587,289
(6) Other long-term assets are not available to pay for

current-period expenditures and therefore are deferred
in the governmental funds. 1,435,030
Net position of governmental activities (Exhibit A) $ 14,070,566
23
Exhibit C-3

Statement of Revenues, Expenditures,
and Changes in Fund Balances
Governmental Funds
Nonmajor
Funds
Major Funds Other
Revenues
Local Taxes $ 17,037,324 $ 9,653,437 $ 6,329,202 $ 33,019,963
Licenses and Permits 437,638 0 0 437,638
Fines, Forfeitures, and Penalties 457,855 0 99,304 557,159
Charges for Current Services 326,444 0 62,208 388,652
Other Local Revenues 796,043 702,656 92,324 1,591,023
Fees Received From County Officials 4,331,617 0 0 4,331,617
State of Tennessee 3,309,170 1,218,578 3,121,248 7,648,996
Federal Government 876,005 401 8,331 884,737
Other Governments and Citizens Groups 68,502 359,994 30,413 458,909
Total Revenues $ 27,640,598 $ 11,935,066 $ 9,743,030 $ 49,318,694
Expenditures
Current:
General Government $ 3,616,216 $ 0 $ 0 $ 3,616,216
Finance 3,085,261 0 5,441 3,090,702
Administration of Justice 2,495,579 0 4,680 2,500,259
Public Safety 12,049,098 0 402,533 12,451,631
Public Health and Welfare 1,957,644 0 0 1,957,644
Social, Cultural, and Recreational Services 1,346,170 0 14,731 1,360,901
Agriculture and Natural Resources 142,927 0 0 142,927
Other Operations 1,716,541 0 31,178 1,747,719
Highways 0 0 5,583,018 5,583,018
Debt Service:
Principal on Debt 0 7,095,052 0 7,095,052
Interest on Debt 0 3,692,004 0 3,692,004
Other Debt Service 0 1,982,412 0 1,982,412
(Continued)
24
Exhibit C-3

Nonmajor
Funds
Major Funds Other
Expenditures (Cont.)
Capital Projects $ 663 $ 0 $ 4,055,703 $ 4,056,366
Capital Projects - Donated 0 0 1,081,213 1,081,213
Total Expenditures $ 26,410,099 $ 12,769,468 $ 11,178,497 $ 50,358,064
Excess (Deficiency) of Revenues

Over Expenditures $ 1,230,499 $ (834,402) $ (1,435,467) $ (1,039,370)
Other Financing Sources (Uses)

Notes Issued $ 0 $ 0 $ 355,993 $ 355,993
Refunding Debt Issued 0 20,150,000 0 20,150,000
Premiums on Debt Sold 0 3,053,890 0 3,053,890
Insurance Recovery 25,238 0 12,396 37,634
Transfers In 0 198,646 67,564 266,210
Transfers Out (198,646) (67,564) 0 (266,210)
Payments to Refunded Debt Escrow Agent 0 (21,550,000) 0 (21,550,000)
Total Other Financing Sources (Uses) $ (173,408) $ 1,784,972 $ 435,953 $ 2,047,517
Net Change in Fund Balances $ 1,057,091 $ 950,570 $ (999,514) $ 1,008,147

Fund Balance, July 1, 2015 11,320,311 11,487,786 7,728,194 30,536,291
Fund Balance, June 30, 2016 $ 12,377,402 $ 12,438,356 $ 6,728,680 $ 31,544,438
25
Exhibit C-4
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the

of activities (Exhibit B) are different because:
Net change in fund balances - total governmental funds (Exhibit C-3) $ 1,008,147
(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 $ 8,147,458
Less: current-year depreciation expense (6,263,531)
Add: current-year depreciation expense of the internal service fund that
is also included in item (6) below 9,268
Less: capital assets purchased by the internal service fund that are also
included in item (6) below (48,946) 1,844,249
(2) The net effect of various miscellaneous transactions involving capital assets
(sales, trade-ins, and donations) is to increase net position.
Add: assets donated and capitalized $ 4,526,189
Less: book value of capital assets disposed (6,767) 4,519,422
(3) 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, 2016 $ 1,435,030
Less: deferred delinquent property taxes and other deferred June 30, 2015 (727,276) 707,754
(4) The issuance of long-term debt (e.g., bonds, notes, other loans, capital leases)
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 the debt
is first issued, whereas these amounts are deferred and amortized in the
statement of activities. This amount is the effect of these differences in
the treatment of long-term debt and related items:
Less: note proceeds $ (355,993)
Less: refunding bond proceeds (20,150,000)
Less: change in premium on debt issuances (2,304,689)
Add: principal payments on bonds 4,590,000
Add: principal payments on notes 2,230,000
Add: principal payments on other loans 275,052
Add: payment to refunding debt escrow agent 21,550,000
Add: change in deferred amount on refunding debt 1,324,728 7,159,098
(Continued)
26
Exhibit C-4
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities (Cont.)
(5) 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 accrued interest payable $ 79,545
Change in net pension liability (418,324)
Change in deferred outflows related to pensions 193,692
Change in deferred inflows related to pensions 1,041,841
Change in pensions from the internal service fund (19,761)
Change in compensated absences payable (14,071)
Change in compensated absences payable from the internal service
fund that are also included in item (6) below 228 863,150
(6) An internal service fund is used by management to charge the costs

of a central maintenance garage to individual funds. The net
revenue of certain activities of the internal service fund
is reported with governmental activities in the statement of activities. 40,725
Change in net position of governmental activities (Exhibit B) $ 16,142,545
27
Exhibit C-5

Statement of Revenues, Expenditures, and Changes
in Fund Balance - Actual (Budgetary Basis) and Budget
General Fund
Actual Variance
Revenues/ with Final
Actual Less: Add: Expenditures Budget -
(GAAP Encumbrances Encumbrances (Budgetary Budgeted Amounts Positive
Basis) 7/1/2015 6/30/2016 Basis) Original Final (Negative)
Revenues
Local Taxes $ 17,037,324 $ 0 $ 0 $ 17,037,324 $ 16,054,652 $ 16,054,652 $ 982,672
Licenses and Permits 437,638 0 0 437,638 291,000 291,000 146,638
Fines, Forfeitures, and Penalties 457,855 0 0 457,855 385,050 385,050 72,805
Charges for Current Services 326,444 0 0 326,444 315,240 315,240 11,204
Other Local Revenues 796,043 0 0 796,043 492,700 768,510 27,533
Fees Received From County Officials 4,331,617 0 0 4,331,617 3,705,000 3,705,000 626,617
State of Tennessee 3,309,170 0 0 3,309,170 3,321,423 3,339,935 (30,765)
Federal Government 876,005 0 0 876,005 81,493 849,778 26,227
Other Governments and Citizens Groups 68,502 0 0 68,502 65,500 69,756 (1,254)
Total Revenues $ 27,640,598 $ 0 $ 0 $ 27,640,598 $ 24,712,058 $ 25,778,921 $ 1,861,677
Expenditures
General Government
County Commission $ 79,096 $ (290) $ 310 $ 79,116 $ 81,991 $ 81,991 $ 2,875
Board of Equalization 539 0 0 539 1,800 600 61
Other Boards and Committees 7,844 (2,793) 554 5,605 5,000 7,005 1,400
County Mayor/Executive 233,637 0 2,834 236,471 238,220 238,220 1,749
Personnel Office 227,104 (252) 0 226,852 236,267 236,267 9,415
County Attorney 104,025 0 0 104,025 108,329 108,329 4,304
Election Commission 301,057 (50) 22,600 323,607 335,730 344,680 21,073
Register of Deeds 310,034 0 0 310,034 308,200 320,042 10,008
Development 420,914 (1,350) 1,532 421,096 461,254 462,073 40,977
County Buildings 883,809 (121,766) 25,361 787,404 821,555 821,555 34,151
Other General Administration 885,020 (33,159) 18,487 870,348 950,629 950,629 80,281
Preservation of Records 163,137 (500) 0 162,637 163,929 182,428 19,791
Finance
Accounting and Budgeting 441,401 (100) 800 442,101 456,614 456,614 14,513
Purchasing 217,037 (210) 81 216,908 218,639 218,639 1,731
Property Assessor's Office 617,838 (9,690) 1,413 609,561 630,025 637,809 28,248
Reappraisal Program 148,271 0 0 148,271 155,000 155,000 6,729
(Continued)
28
Exhibit C-5

General Fund (Cont.)
Actual Variance
Finance (Cont.)
County Trustee's Office $ 314,184 $ (419) $ 0 $ 313,765 $ 324,274 $ 324,274 $ 10,509
County Clerk's Office 764,486 (375) 1,737 765,848 789,633 797,113 31,265
Data Processing 582,044 (14,865) 9,707 576,886 582,071 590,371 13,485
Administration of Justice
Circuit Court 1,029,644 (1,342) 2,043 1,030,345 1,115,084 1,115,084 84,739
General Sessions Court 985,368 (912) 2,250 986,706 1,086,101 1,086,102 99,396
Chancery Court 421,347 (496) 0 420,851 435,149 435,149 14,298
District Attorney General 0 0 0 0 101,200 350 350
Victim Assistance Programs 59,220 0 0 59,220 54,000 58,800 (420)
Public Safety
Sheriff's Department 6,070,472 (70,882) 8,552 6,008,142 6,185,037 6,193,458 185,316
Administration of the Sexual Offender Registry 2,010 0 0 2,010 2,000 3,400 1,390
Jail 4,944,107 (142,736) 137,802 4,939,173 5,047,994 5,153,118 213,945
Juvenile Services 220,133 (400) 4,842 224,575 276,220 278,220 53,645
Civil Defense 305,276 0 0 305,276 261,276 305,276 0
Other Emergency Management 471,424 (131,589) 10,092 349,927 316,522 429,889 79,962
Public Safety Grants Program 35,676 (21,416) 1,876 16,136 31,881 52,088 35,952
Public Health and Welfare
Local Health Center 817,366 (2,064) 19,950 835,252 1,015,803 1,026,429 191,177
Rabies and Animal Control 560,516 (9,128) 3,840 555,228 598,852 607,216 51,988
Appropriation to State 87,375 0 0 87,375 69,900 67,996 (19,379)
Other Public Health and Welfare 492,387 0 0 492,387 352,500 844,730 352,343
Social, Cultural, and Recreational Services
Senior Citizens Assistance 34,000 0 0 34,000 34,000 34,000 0
Libraries 617,442 (2,525) 4,412 619,329 639,145 646,914 27,585
Parks and Fair Boards 694,728 (65,286) 117,580 747,022 727,227 762,327 15,305
Agriculture and Natural Resources
Agricultural Extension Service 100,032 0 0 100,032 123,517 131,517 31,485
Forest Service 2,000 0 0 2,000 2,000 2,000 0
(Continued)
29
Exhibit C-5

Actual Variance
Agriculture and Natural Resources (Cont.)
Soil Conservation $ 40,895 $ 0 $ 0 $ 40,895 $ 43,317 $ 43,317 $ 2,422
Other Operations
Tourism 358,154 (1,436) 2,307 359,025 370,000 370,000 10,975
Industrial Development 226,128 0 0 226,128 227,500 227,500 1,372
Other Economic and Community Development 521 0 0 521 1,200 1,200 679
Airport 40,000 0 0 40,000 40,000 40,000 0
Veterans' Services 87,914 0 0 87,914 89,950 89,950 2,036
Contributions to Other Agencies 61,375 0 0 61,375 64,375 64,375 3,000
Employee Benefits 45,216 0 0 45,216 29,500 45,482 266
Payments to Cities 250,000 0 0 250,000 250,000 250,000 0
Miscellaneous 647,233 (24,660) 5,600 628,173 515,911 636,761 8,588
Capital Projects
Public Safety Projects 663 0 100 763 0 763 0
Total Expenditures $ 26,410,099 $ (660,691) $ 406,662 $ 26,156,070 $ 26,976,321 $ 27,937,050 $ 1,780,980

Over Expenditures $ 1,230,499 $ 660,691 $ (406,662) $ 1,484,528 $ (2,264,263) $ (2,158,129) $ 3,642,657

Insurance Recovery $ 25,238 $ 0 $ 0 $ 25,238 $ 40,000 $ 47,718 $ (22,480)
Transfers In 0 0 0 0 900,000 0 0
Transfers Out (198,646) 0 0 (198,646) (635,000) (198,646) 0
Total Other Financing Sources $ (173,408) $ 0 $ 0 $ (173,408) $ 305,000 $ (150,928) $ (22,480)
Net Change in Fund Balance $ 1,057,091 $ 660,691 $ (406,662) $ 1,311,120 $ (1,959,263) $ (2,309,057) $ 3,620,177
Fund Balance, July 1, 2015 11,320,311 (660,691) 0 10,659,620 11,320,311 11,320,311 (660,691)
Fund Balance, June 30, 2016 $ 12,377,402 $ 0 $ (406,662) $ 11,970,740 $ 9,361,048 $ 9,011,254 $ 2,959,486
30
Exhibit D-1
Proprietary Funds
June 30, 2016
Governmental
Activities -
Business-type Activities Internal
Major Nonmajor Service
Fund Fund Fund
Maury Solid Central
Regional Waste Maintenance/
Hospital Disposal Total Garage
ASSETS
Current Assets:
Cash $ 48,958,736 $ 2,883,136 $ 51,841,872 $ 0
Certificates of Deposit 323,783 0 323,783 0
Equity in Pooled Cash and Investments 0 0 0 590,653
Investments 1,988,553 0 1,988,553 0
Accounts Receivable 65,101,929 200,561 65,302,490 83,537
Allowance for Uncollectible Accounts (30,000,000) 0 (30,000,000) 0
Property Taxes Receivable
(Net of Allowance for Uncollected Property Taxes) 0 1,827,827 1,827,827 0
Due from Other Governments 0 21,419 21,419 0
Due from Affiliates 507,095 0 507,095 0
Inventories 4,867,202 0 4,867,202 0
Prepaid Items 3,884,663 0 3,884,663 0
Other Receivables 6,628,035 0 6,628,035 0
Total Current Assets $ 102,259,996 $ 4,932,943 $ 107,192,939 $ 674,190
Noncurrent Assets:
Assets Limited as to Use $ 63,123,459 $ 0 $ 63,123,459 $ 0
Interest in Joint Ventures 259,199 0 259,199 0
Net Pension Asset - Agent Plan 0 74,180 74,180 37,005
Capital Assets:
Assets Not Depreciated:
Land 7,656,672 818,367 8,475,039 25,000
Construction in Progress 8,966,783 0 8,966,783 0
Assets Net of Accumulated Depreciation:
Buildings and Improvements 66,105,726 365,586 66,471,312 87,526
Other Capital Assets 32,911,735 892,005 33,803,740 16,361
Total Noncurrent Assets $ 179,023,574 $ 2,150,138 $ 181,173,712 $ 165,892
Total Assets $ 281,283,570 $ 7,083,081 $ 288,366,651 $ 840,082
DEFERRED OUTFLOWS OF RESOURCES
Pension Other Deferrals $ 0 $ 30,760 $ 30,760 $ 15,345

Pension Changes in Experience 275,312 8,833 284,145 4,406
Pension Changes in Investment Earnings 3,854,601 0 3,854,601 0
Deferred Amounts from Debt Refunding 183,709 0 183,709 0
Total Deferred Inflows of Resources $ 4,313,622 $ 39,593 $ 4,353,215 $ 19,751
LIABILITIES
Current Liabilities:
Accounts Payable $ 14,137,289 $ 18,927 $ 14,156,216 $ 181
Accrued Payroll 3,811,837 1,373 3,813,210 0
Payroll Deductions Payable 0 14,923 14,923 6,993
Due to State of Tennessee 0 686 686 49
Compensated Absences Payable 7,124,290 28,503 7,152,793 16,847
Accrued Liability for Landfill Postclosure Care Cost 0 17,541 17,541 0
Accrued Interest Payable 321,620 0 321,620 0
Current Portion of Long-term Debt 4,038,335 0 4,038,335 0
Total Current Liabilities $ 29,433,371 $ 81,953 $ 29,515,324 $ 24,070
Noncurrent Liabilities:
Accrued Liability for Landfill Postclosure Care Cost $ 0 $ 387,449 $ 387,449 $ 0
Compensated Absences Payable 0 21,689 21,689 2,702
Other Long-term Liabilities 17,460,095 0 17,460,095 0
Bonds and Other Long-term Debt 30,799,160 0 30,799,160 0
Total Noncurrent Liabilities $ 48,259,255 $ 409,138 $ 48,668,393 $ 2,702
Total Liabilities $ 77,692,626 $ 491,091 $ 78,183,717 $ 26,772
(Continued)
31
Exhibit D-1
Governmental
Activities -
Fund Fund Fund
Maury Solid Central
Deferred Current Property Taxes $ 0 $ 1,821,543 $ 1,821,543 $ 0

Pension Changes in Experience 41,271 8,952 50,223 4,466
Pension Changes in Investment Earnings 0 16,983 16,983 8,472
Pension Other Deferrals 0 0 0 0
Total Deferred Inflows of Resources $ 41,271 $ 1,847,478 $ 1,888,749 $ 12,938
NET POSITION
Net Investment in Capital Assets $ 92,698,594 $ 2,075,959 $ 94,774,553 $ 128,887

Restricted for Other Purposes 0 74,180 74,180 37,005
Unrestricted 115,164,701 2,633,966 117,798,667 654,231
Total Net Position $ 207,863,295 $ 4,784,105 $ 212,647,400 $ 820,123
32
Exhibit D-2

Statement of Revenues, Expenses, and
Changes in Net Position
Proprietary Funds
Governmental
Activities -
Fund Fund Fund
Maury Solid Central
Operating Revenues
Charges for Current Services $ 321,997,679 $ 1,756,484 $ 323,754,163 $ 1,712,494
Other Local Revenues 9,701,022 233,527 9,934,549 13,534
Total Operating Revenues $ 331,698,701 $ 1,990,011 $ 333,688,712 $ 1,726,028
Operating Expenses
Salaries and Employee Benefits $ 188,752,763 $ 0 $ 188,752,763 $ 0
Other General Administration 10,373,722 0 10,373,722 1,676,035
Fees and Professional Services 26,322,109 0 26,322,109 0
Supplies and Other Expenses 75,806,971 0 75,806,971 0
Waste Pickup 0 53,852 53,852 0
Convenience Centers 0 916,624 916,624 0
Landfill Operation and Maintenance 0 2,307,974 2,307,974 0
Depreciation and Amortization Expense 17,258,717 280,082 17,538,799 9,268
Total Operating Expenses $ 318,514,282 $ 3,558,532 $ 322,072,814 $ 1,685,303
Operating Income (Loss) $ 13,184,419 $ (1,568,521) $ 11,615,898 $ 40,725
Nonoperating Revenues (Expenses)

Local Taxes $ 0 $ 1,912,721 $ 1,912,721 $ 0
State Grants 0 118,834 118,834 0
Contributions 2,417,587 0 2,417,587 0
Interest Income 1,275,169 0 1,275,169 0
Interest Expense (969,183) 0 (969,183) 0
Equity in Joint Venture Losses (229,355) 0 (229,355) 0
Other (157,120) 0 (157,120) 0
Total Nonoperating Revenues (Expenses) $ 2,337,098 $ 2,031,555 $ 4,368,653 $ 0
Change in Net Position $ 15,521,517 $ 463,034 $ 15,984,551 $ 40,725

Net Position, July 1, 2015 192,341,778 4,321,071 196,662,849 779,398
Net Position, June 30, 2016 $ 207,863,295 $ 4,784,105 $ 212,647,400 $ 820,123
33
Exhibit D-3

Statement of Cash Flows
Proprietary Funds
Governmental
Activities -
Fund Fund Fund
Maury Solid Central
Cash Flows from Operating Activities

Receipts from Customers and Users $ 319,285,638 $ 1,770,577 $ 321,056,215 $ 1,671,443
Other Cash Receipts (Payments) 4,998,818 215,721 5,214,539 13,534
Payments to Suppliers (114,739,868) 0 (114,739,868) 0
Payments to Employees (186,107,731) 0 (186,107,731) 0
Central Maintenance Garage Activity - Uses 0 0 0 (1,676,681)
Waste Collection and Disposal Activity - Uses 0 (3,327,690) (3,327,690) 0
Net Cash Provided By (Used In) Operating Activities $ 23,436,857 $ (1,341,392) $ 22,095,465 $ 8,296
Cash Flows from Capital and Related Financing Activities

Acquisition of Capital Assets $ (16,713,069) $ (289,253) $ (17,002,322) $ (48,946)
Proceeds from Sale of Equipment 978,962 0 978,962 0
Principal Payments on Long-term Debt (4,142,384) 0 (4,142,384) 0
Interest Paid on Long-term Debt (1,035,559) 0 (1,035,559) 0
Deferred Amounts from Bond Refunding 0 0 0 0
Net Cash Provided By (Used In) Capital and Related Financing Activities $ (20,912,050) $ (289,253) $ (21,201,303) $ (48,946)
Cash Flows from Noncapital Financing Activities

Grants Received $ 2,417,587 $ 118,834 $ 2,536,421 $ 0
Local Taxes 0 1,913,721 1,913,721 0
Pension Contributions 0 (43,825) (43,825) (19,762)
Net Cash Provided By (Used In) Noncapital Financing Activities $ 2,417,587 $ 1,988,730 $ 4,406,317 $ (19,762)
Cash Flows from Investing Activities

Investment Income $ 1,275,169 $ 0 $ 1,275,169 $ 0
Purchase of Investments 5,808,153 0 5,808,153 0
Proceeds from Maturities of Certificates of Deposit 645,947 0 645,947 0
Purchase of Certificates of Deposit (647,566) 0 (647,566) 0
Investment in Joint Venture (588,000) 0 (588,000) 0
Issuance of Notes Receivable (378,064) 0 (378,064) 0
Net Cash Provided By (Used In) Investing Activities $ 6,115,639 $ 0 $ 6,115,639 $ 0
Net Increase (Decrease) in Cash $ 11,058,033 $ 358,085 $ 11,416,118 $ (60,412)

Cash, July 1, 2015 37,900,703 2,525,051 40,425,754 651,065
Cash, June 30, 2016 $ 48,958,736 $ 2,883,136 $ 51,841,872 $ 590,653
(Continued)
34
Exhibit D-3

Statement of Cash Flows
Proprietary Funds (Cont.)
Governmental
Activities -
Fund Fund Fund
Maury Solid Central
Reconciliation of Net Operating Income (Loss)

to Net Cash Provided By (Used In) Operating Activities
Operating Income (Loss) $ 13,184,419 $ (1,568,521) $ 11,615,898 $ 40,725
Adjustments to Reconcile Net Operating Income (Loss) to
Net Cash Provided By (Used In) Operating Activities:
Depreciation and Amortization Expense 17,258,717 280,082 17,538,799 9,268
Provision for Uncollectible Accounts 24,139,877 0 24,139,877 0
Amortization of Deferred Pension Adjustments 1,094,848 0 1,094,848 0
(Increase) Decrease in Accounts Receivable (25,575,566) 14,093 (25,561,473) (41,051)
(Increase) Decrease in Due from Other Governments 0 (17,806) (17,806) 0
(Increase) Decrease in Due from Affiliates 48,097 0 48,097 0
(Increase) Decrease in Inventories (85,948) 0 (85,948) 0
(Increase) Decrease in Prepaid Items (587,635) 0 (587,635) 0
(Increase) Decrease in Other Assets (695,037) 0 (695,037) 0
Increase (Decrease) in Accounts Payable (3,948,229) (50,565) (3,998,794) (142)
Increase (Decrease) in Accrued Payroll (3,482,296) (1) (3,482,297) 0
Increase (Decrease) in Payroll Deductions Payable 0 (195) (195) (763)
Increase (Decrease) in Postclosure Care Costs 0 10,031 10,031 0
Increase (Decrease) in Due to State of Tennessee 0 (476) (476) 31
Increase (Decrease) in Other Long-term Liabilities 1,077,294 0 1,077,294 0
Increase (Decrease) in Accrued Leave 1,008,316 (8,034) 1,000,282 228
Net Cash Provided By (Used In) Operating Activities $ 23,436,857 $ (1,341,392) $ 22,095,465 $ 8,296
Reconciliation of Cash With the Statement of Net Position

Cash Per Net Position $ 48,958,736 $ 2,883,136 $ 51,841,872 $ 0
Equity in Pooled Cash and Investments Per Net Position 0 0 0 590,653
Cash, June 30, 2016 $ 48,958,736 $ 2,883,136 $ 51,841,872 $ 590,653
Schedule of Noncash Capital and Related Financing Activities

Equipment Acquired Through Capital Leases $ 70,000 $ 0 $ 70,000 $ 0
35
Exhibit E
Statement of Fiduciary Assets and Liabilities
Fiduciary Funds
June 30, 2016
Agency
Funds
ASSETS
Cash $ 2,110,021
Investments 11,425
Accounts Receivable 895
Due from Other Governments 2,245,844
Total Assets $ 4,368,185
LIABILITIES
Due to Other Taxing Units $ 2,245,844

Due to Litigants, Heirs, and Others 2,122,341
Total Liabilities $ 4,368,185
36
Index of Notes to the Financial Statements
Note Page(s)
I. Summary of Significant Accounting Policies

A. Reporting Entity 39
B. Government-wide and Fund Financial Statements 40
C. Measurement Focus, Basis of Accounting, and Financial
Statement Presentation 41
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and
Net Position/Fund Balance
1. Deposits and Investments 44
2. Receivables and Payables 45
3. Prepaid Items 46
4. Capital Assets 46
5. Deferred Outflows/Inflows of Resources 47
6. Compensated Absences 47
7. Long-term Obligations 48
8. Net Position and Fund Balance 49
E. Pension Plans 50
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 51
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 51
III. Stewardship, Compliance, and Accountability
A. Budgetary Information 52
B. Expenditures Exceeded Appropriations 53
IV. Detailed Notes on All Funds
A. Deposits and Investments 53
B. Capital Assets 55
C. Construction Commitments 59
D. Interfund Receivables, Payables, and Transfers 59
E. Long-term Obligations 60
F. On-Behalf Payments 65
G. Short-term Debt 66
37
Index of Notes to the Financial Statements (Cont.)
Note Page(s)
V. Other Information
A. Risk Management 66
B. Accounting Changes 67
C. Subsequent Events 68
D. Contingent Liabilities 68
E. Changes in Administration 68
F. Landfill Closure/Postclosure Care Costs 68
G. Joint Ventures 69
H. Jointly Governed Organization 69
I. Retirement Commitments 70
J. Other Postemployment Benefits (OPEB) 87
K. Offices of Accounting and Budgeting, and Human Resources 90
L. Purchasing Laws 90
VI. Other Notes - Maury Regional Hospital Fund (Enterprise Fund) 90
VII. Other Notes - Discretely Presented Maury County Board of Public
Utilities Water System 113
38
NOTES TO THE FINANCIAL STATEMENTS
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Maury Countys 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 Maury County:
A. Reporting Entity
Maury County is a public municipal corporation governed by an elected

22-member board. As required by GAAP, these financial statements present
Maury County (the primary government) and its component units. Although
required by GAAP, the financial statements of the Maury County Emergency
Communications District, a component unit requiring discrete presentation,
were excluded from this report due to materiality calculations; therefore, the
effect of its omission did not affect our opinion thereon. The component units
discussed below are included in the county's reporting entity because of the
significance of their operational or financial relationships with the county.
Discretely Presented Component Units The following entities meet the

criteria for discretely presented component units of the county. They are
reported in separate columns in the government-wide financial statements to
emphasize that they are legally separate from the county.
The Maury County School Department operates the public school system in
the county, and the voters of Maury County elect its board. The School
Department is fiscally dependent on the county because it may not issue
debt, and its budget and property tax levy are subject to the County
Commissions approval. The School Departments taxes are levied under the
taxing authority of the county and are included as part of the countys total
tax levy.
The Maury County Board of Public Utilities Water System provides water
supply and distribution lines for county residents outside of the city limits.
The county mayor appoints, and the County Commission ratifies its
governing body. The boards operating budget is subject to the County
Commissions approval.
The Maury County Emergency Communications District provides a

simplified means of securing emergency services through a uniform
emergency number for the residents of Maury County, and the Maury County
Commission appoints its governing body. The district is funded primarily
through a service charge levied on telephone services. Before the issuance of
39
most debt instruments, the district must obtain the County Commissions
approval. The financial statements of the Maury County Emergency
Communications District were not material to the component units opinion
unit and therefore have been omitted from this report.
The Maury County School Department does not issue separate financial
statements from those of the county. Therefore, basic financial statements of
the School Department are included in this report as listed in the table of
contents. Complete financial statements of the Maury County Board of Public
Utilities Water System and the Maury County Emergency Communications
District can be obtained from their administrative offices at the following
addresses:
Administrative Offices:
Maury County Board of Public

Utilities Water System
765 New Lewisburg Highway
Columbia, TN 38401
Maury County Emergency

Communications District
2907 Cayce Lane
Columbia, TN 38401
B. Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net

Position and the Statement of Activities) report information on all of the
nonfiduciary activities of the primary government and its component units.
For the most part, the effect of interfund activity has been removed from
these statements. However, when applicable, interfund services provided
and used between functions are not eliminated in the process of consolidation
in the Statement of Activities. Governmental activities are normally
supported by taxes and intergovernmental revenues. Business-type activities,
which rely to a significant extent on fees and charges, are required to be
reported separately from governmental activities in government-wide
financial statements. Likewise, the primary government is reported
separately from certain legally separate component units for which the
primary government is financially accountable. The Maury County School
Department component unit only reports governmental activities in the
government-wide financial statements.
The Statement of Activities demonstrates the degree to which the direct

expenses of a given function are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function. Program
revenues include (1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given
function and (2) grants and contributions that are restricted to meeting the
40
operational or capital requirements of a particular function. Taxes and other
items not properly included among program revenues are reported instead as
general revenues.
Maury County issues all debt for the discretely presented Maury County
School Department. There were no debt issues contributed by the county to
the School Department during the year ended June 30, 2016.
Separate financial statements are provided for governmental funds,

proprietary funds (internal service and enterprise), and fiduciary funds. The
internal service fund is reported with the governmental activities in the
government-wide financial statements, and the fiduciary funds are excluded
from the government-wide financial statements. Major individual
governmental funds and the enterprise funds are reported as separate
columns in the fund financial statements.
C. Measurement Focus, Basis of Accounting, and Financial Statement

Presentation
The government-wide financial statements are reported using the economic

resources measurement focus and the accrual basis of accounting, as are the
proprietary funds and fiduciary funds financial statements, except for agency
funds, which have no measurement focus. Revenues are recorded when
earned, and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the
provider have been met.
Fund financial statements of Maury County are organized into funds, each of
which is considered to be a separate accounting entity. Each fund is
accounted for by providing a separate set of self-balancing accounts that
constitute its assets, deferred outflow of resources, liabilities, deferred inflow
of resources, fund equity, revenues, and expenditures/expenses. Funds are
organized into three major categories: governmental, proprietary, and
fiduciary. An emphasis is placed on major funds within the governmental and
proprietary categories. Maury County reports three proprietary funds (one
internal service fund and two enterprise funds).
Separate financial statements are provided for governmental funds,

proprietary funds, and fiduciary funds. Major individual governmental funds
and the enterprise funds are reported as separate columns in the fund
financial statements. All other governmental funds are aggregated into a
single column on the fund financial statements. The internal service fund and
the fiduciary funds in total are reported in single columns by fund type.
Governmental fund financial statements are reported using the current

financial resources measurement focus and the modified accrual basis of
accounting. Revenues are recognized as soon as they become both measurable
41
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. Maury 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.
Proprietary funds and fiduciary funds financial statements are reported

using the economic resources measurement focus, except for agency funds,
which have no measurement focus, and the accrual basis of accounting.
Revenues are recognized when earned, and expenses are recorded when a
liability is incurred, regardless of the timing of related cash flows. Grants and
similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met.
Maury County reports the following major governmental funds:
General Fund This is the countys primary operating fund. It

accounts for all financial resources of the general government, except
those required to be accounted for in another fund.
General Debt Service Fund This fund accounts for the resources
accumulated and payments made for principal and interest on
long-term general obligation debt of governmental funds.
Maury County reports the following major proprietary fund:
Maury Regional Hospital Fund This fund accounts for the

regional hospital under authority of and in compliance with the
provisions of Chapter 373 of the Tennessee Private Acts of 1953.
Additionally, Maury County reports the following fund types:
42
Special Revenue Funds These funds account for and report the
proceeds of specific revenue sources that are restricted or committed
to expenditure for specified purposes other than debt service or capital
projects.
Capital Projects Funds These 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.
Internal Service Fund The Central Maintenance/Garage Fund is

used to account for the countys central vehicle maintenance program.
Agency Funds These funds account for amounts collected in an

agency capacity by the constitutional officers and local sales taxes
received by the state to be forwarded to the various cities in Maury
County. Agency funds are custodial in nature (assets equal liabilities)
and do not involve measurement of results of operations. They do,
however, use the accrual basis of accounting to recognize receivables
and payables.
The discretely presented Maury County School Department reports the

following major governmental funds:
General Purpose School Fund This fund is the primary operating

fund for the School Department. It is used to account for general
operations of the School Department.
Education Capital Projects Fund This fund is used to account for

building construction and renovations of the School Department.
Additionally, the Maury County School Department reports the following

fund type:
Special Revenue Funds These funds account for and report the
proceeds of specific revenue sources that are restricted or committed
to expenditure for specified purposes other than debt service or capital
projects.
Amounts reported as program revenues include (1) charges to customers or

applicants for goods, services, or privileges provided; (2) operating grants and
contributions; and (3) capital grants and contributions. Internally dedicated
resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from

nonoperating items. The county has three proprietary funds to account for
solid waste disposal (enterprise fund), a regional hospital (enterprise fund),
and a central maintenance/garage (internal service fund). Operating
43
revenues and expenses generally result from providing services in connection
with the funds principal ongoing operations. The principal operating
revenues of the countys proprietary funds are charges for services. Operating
expenses for the proprietary funds include general operating expenses.
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net

Position/Fund Balance
1. Deposits and Investments
For purposes of the Statement of Cash Flows of the primary

government (excluding the Maury Regional Hospital), cash includes
cash on hand and cash on deposit with the county trustee.
State statutes authorize the government to make direct investments

in bonds, notes, or treasury bills of the U.S. government and
obligations guaranteed by the U.S. government or any of its agencies;
deposit accounts at state and federal chartered banks and savings and
loan associations; repurchase agreements; the State Treasurers
Investment Pool; bonds of any state or political subdivision rated A or
higher by any nationally recognized rating service; nonconvertible
debt securities of certain federal government sponsored enterprises;
and the countys own legally issued bonds or notes.
The county trustee maintains a cash and internal investment pool

that is used by all funds (excluding the Maury Regional Hospital) and
the discretely presented Maury County School Department. Each
funds 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. In addition, investments are held separately by
the Constitutional Officers - Agency Fund. Maury County (excluding
the Maury Regional Hospital) and the School Department have
adopted a policy of reporting U.S. Treasury obligations, U.S. agency
obligations, and repurchase agreements with maturities of one year or
less when purchased on the balance sheet at amortized cost.
Certificates of deposit are reported at cost. Investments in the State
Treasurers Investment Pool are reported at amortized cost using a
Stable Net Asset Value. State statutes require the state treasurer to
administer the pool under the same terms and conditions, including
collateral requirements, as prescribed for other funds invested by the
state treasurer. All other investments are reported at fair value. No
investments required to be reported at fair value were held at the
balance sheet date.
44
2. Receivables and Payables
Activity between funds for unremitted current collections outstanding

at the end of the fiscal year is referred to as due to/from other funds.
All property taxes receivable are shown with an allowance for

uncollectibles. The allowance for uncollectible property taxes is equal
to two 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.
Most payables are disaggregated on the face of the financial

statements. Current liabilities payable from restricted assets reflected
in the primary government funds represent deposits placed with
Maury County for animal control spay/neuter vouchers.
Retainage payable in the Maury County School Departments

Education Capital Projects Fund and nonmajor governmental funds
represents amounts withheld from payments made on construction
contracts pending completion of the projects. These amounts are held
by the county trustee as Equity in Pooled Cash and Investments in
these funds.
45
3. Prepaid Items
Certain payments to vendors reflect costs applicable to future

accounting periods and are recorded as prepaid items in both the
government-wide and fund financial statements. The cost of prepaid
items is recorded as an expenditure when consumed rather than when
purchased. Prepaids are offset in the nonspendable fund balance
account in governmental funds.
4. 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 and the business-type columns in the
government-wide financial statements. Capital assets are defined by
the government (excluding the Maury Regional Hospital) as assets
with an initial, individual cost of $10,000 (infrastructure and
intangible assets $50,000) for the primary government and $5,000 for
the School Department or more and an estimated useful life of more
than two years. Such assets are recorded at historical cost or
estimated historical cost if purchased or constructed. Donated capital
assets are recorded at estimated fair market value at the date of
donation.
The costs of normal maintenance and repairs that do not add to the
value of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as

projects are constructed.
Property, plant, equipment, intangibles, and infrastructure of the

primary government (excluding Maury Regional Hospital) and the
discretely presented School Department are depreciated using the
straight-line method over the following estimated useful lives:
Assets Years
Buildings and Improvements 10 - 50

Other Capital Assets 3-7
Infrastructure:
Roads 5 - 15
Bridges 50
Intangibles 5 - 10
46
5. Deferred Outflows/Inflows of Resources
In addition to assets, the Statement of Net Position will sometimes

report a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The government has items that
qualify for reporting in this category. Accordingly, the items are
reported in the government-wide Statement of Net Position and the
governmental funds balance sheet. These items are for deferred
amount on refunding, pension changes in experience, pension changes
in investment earnings, 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, etc.) 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 property taxes, pension changes in experience,
pension changes in investment earnings, and pension changes in
proportionate share of net pension liability. These amounts are
deferred and recognized as an inflow of resources in the period that
the amounts become available.
6. Compensated Absences
Primary Government
The policy of Maury County (with the exception of the Maury Regional
Hospital) permits employees to accumulate earned but unused
vacation and sick pay benefits. There is no liability for unpaid
accumulated sick leave since Maury County does not have a policy to
pay any amounts when employees separate from service with the
government. All vacation pay is accrued when incurred in the
government-wide financial statements for the county. A liability for
vacation pay is reported in governmental funds only if amounts have
matured, for example, as a result of employee resignations and
retirements.
Discretely Presented Maury County School Department
It is the policy of the discretely presented Maury County School

Department to permit employees to accumulate varying amounts of
earned but unused vacation leave, which will be paid upon retirement,
47
resignation, or termination. It is also the policy of the School
Department to permit employees to accumulate varying amounts of
earned but unused sick leave. Upon retirement from the School
Department, employees will be paid either $50 (professional) or
$10 (certain nonprofessional) per day for unused sick leave. This
payment will be made after the employees retirement has been
approved by the Tennessee Consolidated Retirement System. During
the year, 41 employees retired and received sick leave payments
totaling $215,661. All vacation and sick leave is accrued when
incurred in the government-wide financial statements for the School
Department. A liability for vacation and sick leave is reported in
governmental funds only if amounts have matured, for example, as a
result of employee resignations and retirements.
7. Long-term Obligations
In the government-wide financial statements and the proprietary fund

type in the fund financial statements, long-term debt and other
long-term obligations are reported as liabilities in the applicable
governmental activities or proprietary fund type Statement of Net
Position. Debt premiums and discounts are deferred and amortized
over the life of the new debt using the straight-line method. Debt
issuance costs are expensed in the period incurred. In refunding
transactions, the difference between the reacquisition price and the
net carrying amount of the old debt is reported as a deferred outflow of
resources or a deferred inflow of resources and recognized as a
component of interest expense in a systematic and rational manner
over the remaining life of the refunded debt or the life of the new debt
issued, whichever is shorter.
In the fund financial statements, governmental funds recognize debt

premiums and discounts, as well as debt issuance costs, during the
current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported
as other financing sources, while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt
service expenditures.
Only the matured portion (the portion that has come due for payment)
of long-term indebtedness, including bonds payable, is recognized as a
liability and expenditure in the governmental fund financial statements.
Liabilities and expenditures for other long-term obligations, including
compensated absences, other postemployment benefits, and landfill
closure/postclosure care costs, are recognized to the extent that the
liabilities have matured (come due for payment) each period.
48
8. Net Position and Fund Balance
In the government-wide financial statements and the proprietary

funds in the fund financial statements, equity is classified as net
position and displayed in three components:
a. Net investment in capital assets Consists of capital assets,

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

constraints placed on the use either by (1) external groups such
as creditors, grantors, contributors, or laws or regulations of
other governments or (2) law through constitutional provisions
or enabling legislation.
c. Unrestricted net position All other net position that does not
meet the definition of restricted or net investment in capital
assets.
The government-wide Statement of Net Position reports $1,594,102

restricted for Other Purposes for the primary government, which
consists of net pension obligations.
As of June 30, 2016, Maury County had $89,164,000 in outstanding

debt for capital purposes for the discretely presented Maury County
School Department. This debt is a liability of Maury County, but the
capital assets acquired are reported in the financial statements of the
School Department. Therefore, Maury County has incurred a liability
significantly decreasing its unrestricted net position with no
corresponding increase in the countys capital assets.
It is the countys 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 countys 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:
49
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 countys
highest level of decision-making authority and the Board of
Education, the School Departments highest level of
decision-making authority, and shall remain binding unless
removed in the same manner.
Assigned Fund Balance includes amounts that are

constrained by the countys intent to be used for specific
purposes, but are neither restricted nor committed (excluding
stabilization arrangements). The County Commission has by
resolution authorized the countys Budget Committee to make
assignments for the general government. The Board of
Education makes assignments for the School Department.
Unassigned Fund Balance the residual classification of the

General and General Purpose School funds. This classification
represents fund balance that has not been assigned to other
funds and has not been restricted, committed, or assigned to
specific purposes within the General and General Purpose
School funds.
E. Pension Plans
Primary Government
For purposes of measuring the net pension liability, deferred outflows of

resources and deferred inflows of resources related to pensions, and pension
expense, information about the fiduciary net position of Maury Countys
participation in the Public Employee Retirement Plan of the Tennessee
Consolidated Retirement System (TCRS), and additions to/deductions from
Maury Countys 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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For purposes of measuring the net pension liability, deferred outflows of

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

STATEMENTS
A. Explanation of certain differences between the governmental fund

balance sheet and the government-wide Statement of Net Position
Primary Government
Exhibit C-2 includes explanations of the nature of individual elements of

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

items required to reconcile the balance sheet of governmental funds with the
government-wide Statement of Net Position.
B. Explanation of certain differences between the governmental fund

Balances and the government-wide Statement of Activities
Primary Government
Exhibit C-4 includes explanations of the nature of individual elements of

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

items required to reconcile the net change in fund balances total
governmental funds with the change in net position of governmental
activities reported in the government-wide Statement of Activities.
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III. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted

accounting principles (GAAP) for all governmental funds except the
Constitutional Officers - Fees fund (special revenue fund), which is not
budgeted and the capital projects funds (except for the primary governments
Other Capital Projects Fund), which adopt 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, Other Boards and Committees, County
Mayor/Executive, etc.). Management may make revisions within major
categories, but only the County Commission may transfer appropriations
between major categories. During the year, several supplementary
appropriations were necessary.
The county's budgetary basis of accounting is consistent with GAAP, except

instances in which encumbrances are treated as budgeted expenditures. The
difference between the budgetary basis and GAAP basis is presented on the
face of each budgetary schedule.
At June 30, 2016, Maury County and the Maury County School Department
reported the following significant encumbrances:
Fund Description Amount
Primary Government:
Nonmajor Fund:
Other Capital Projects Patrol Vehicles $ 372,736
School Department:
Major Fund:
General Purpose School Professional Development 660,000
General Purpose School Building Improvements 384,417
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B. Expenditures Exceeded Appropriations
Expenditures exceeded appropriations approved by the County Commission

in the following major appropriation categories (the legal level of control) of
the General Fund and the discretely presented School Departments General
Purpose School Fund:
Amount
Fund/Major Appropriation Category Overspent
General Fund:
Victims Assistance Programs $ 420
Appropriation to State 19,379
Discteretely Presented School Department:

General Purpose School Fund:
Alternative Instruction Program 3,552
Other Student Support 4,197
Board of Education 70,977
Operation of Plant 21,638
Expenditures that exceed appropriations are a violation of state statutes.

These expenditures in excess of appropriations were funded by greater than
anticipated revenues.
IV. DETAILED NOTES ON ALL FUNDS
A. Deposits and Investments
Maury County (excluding the Maury Regional Hospital) and the discretely
presented Maury County School Department participate in an internal cash
and investment pool through the Office of Trustee. The county trustee is the
treasurer of the county and in this capacity is responsible for receiving,
disbursing, and investing most county funds. Each fund's portion of this pool
is displayed on the balance sheets or statements of net position as Equity in
Pooled Cash and Investments. Cash and investments reflected on the balance
sheets or statements of net position represent nonpooled amounts held
separately by individual funds.
Deposits
Legal Provisions. All deposits with financial institutions must be secured

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

bonds, notes, or treasury bills of the U.S. government and obligations
guaranteed by the U.S. government or any of its agencies; deposits at state
and federal chartered banks and savings and loan associations; bonds of any
state or political subdivision rated A or higher by any nationally recognized
rating service; nonconvertible debt securities of certain federal government
sponsored enterprises; and the countys 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 Treasurers Investment Pool and in repurchase
agreements. Repurchase agreements must be approved by the state
Comptrollers Office and executed in accordance with procedures established
by the State Funding Board. Securities purchased under a repurchase
agreement must be obligations of the U.S. government or obligations
guaranteed by the U.S. government or any of its agencies. When repurchase
agreements are executed, the purchase of the securities must be priced at
least two percent below the fair value of the securities on the day of purchase.
Investment Balances. As of June 30, 2016, Maury County (excluding the

Maury Regional Hospital) had the following investments carried at amortized
cost. All investments are in the Constitutional Officers - Agency Fund and
were made on behalf of litigants at the direction of a court order.
Weighted
Average
Maturity
Investment (days) Maturities Cost
Merrill Lynch N/A Daily $ 11,425
Interest Rate Risk. Interest rate risk is the risk that changes in interest
rates will adversely affect the fair value of an investment. State statutes
limit the maturities of certain investments as previously disclosed. Maury
54
County does not have a formal investment policy that limits investment
maturities as a means of managing its exposure to fair value losses arising
from increasing interest rates.
Credit Risk. Credit risk is the risk that an issuer or other counterparty to
an investment will not fulfill its obligations. State statutes limit the ratings
of certain investments as previously explained. Maury County has no
investment policy that would further limit its investment choices.
Custodial Credit Risk. Custodial credit risk for investments is the risk
that, in the event of a failure of the counterparty to a transaction, the county
will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. Maury County does not have a
formal policy that limits custodial credit risk for investments. It should be
noted that the above-noted amount is invested on behalf of litigants at the
order of the court, and the county has no custodial credit risk for this
investment.
B. Capital Assets
Capital assets activity for the year ended June 30, 2016, was as follows:
Primary Government (Excluding Maury Regional Hospital)
Governmental Activities (Includes Internal Service Fund):
Balance Balance
7-1-15 Increases Decreases 6-30-16
Capital Assets Not

Depreciated:
Land $ 7,412,754 $ 159,188 $ 0 $ 7,571,942
Intangibles 1,098,294 0 0 1,098,294
Construction in
Progress 2,070,132 1,860,748 (3,525,735) 405,145
Total Capital Assets
Not Depreciated $ 10,581,180 $ 2,019,936 $ (3,525,735) $ 9,075,381
55
Governmental Activities (Includes Internal Service Fund) (Cont.):
Balance Balance
Capital Assets
Depreciated:
Buildings and
Improvements $ 39,008,302 $ 2,056,373 $ 0 $ 41,064,675
Infrastructure 77,163,914 11,468,297 0 88,632,211
Other Capital Assets 12,912,999 654,776 (294,169) 13,273,606
Depreciated $ 129,085,215 $ 14,179,446 $ (294,169) $ 142,970,492
Less Accumulated
Depreciation For:
Buildings and
Improvements $ 11,956,386 $ 903,881 $ 0 $ 12,860,267
Infrastructure 41,019,179 4,573,979 0 45,593,158
Total Accumulated
Depreciation $ 63,893,115 $ 6,263,531 $ (287,402) $ 69,869,244

Depreciated, Net $ 65,192,100 $ 7,915,915 $ (6,767) $ 73,101,248
Governmental Activities
Capital Assets, Net $ 75,773,280 $ 9,935,851 $ (3,532,502) $ 82,176,629
Business-type Activities (Excluding Maury Regional Hospital):
Balance Balance
Capital Assets Not

Depreciated:
Land $ 818,367 $ 0 $ 0 $ 818,367
Not Depreciated $ 818,367 $ 0 $ 0 $ 818,367
Capital Assets
Depreciated:
Buildings and
Improvements $ 1,433,932 $ 138,355 $ 0 $ 1,572,287
Depreciated $ 4,900,212 $ 289,252 $ (200,469) $ 4,988,995
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Business-type Activities (Excluding Maury Regional Hospital) (Cont.):
Balance Balance
Less Accumulated
Depreciation For:
Buildings and
Improvements $ 1,170,833 $ 35,868 $ 0 $ 1,206,701
Total Accumulated
Depreciation $ 3,651,791 $ 280,082 $ (200,469) $ 3,731,404

Depreciated, Net $ 1,248,421 $ 9,170 $ 0 $ 1,257,591
Business-type Activities
Capital Assets, Net $ 2,066,788 $ 9,170 $ 2,075,958
Depreciation expense was charged to functions of the primary government

(excluding the Maury Regional Hospital) as follows:
General Government $ 610,626

Finance 57,473
Administration of Justice 35,764
Public Safety 603,983
Public Health and Welfare 21,186
Social, Cultural, and Recreational Services 158,642
Agriculture and Natural Resources 4,089
Other Operations 11,372
Highways 4,760,396
Total Depreciation Expense - Governmental Activities $ 6,263,531
Solid Waste Disposal $ 280,082
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Balance Balance
Capital Assets Not

Depreciated:
Land $ 3,019,939 $ 10 $ 0 $ 3,019,949
Construction in Progress 9,623,736 28,490,898 (1,240,715) 36,873,919
Not Depreciated $ 12,643,675 $ 28,490,908 $ (1,240,715) $ 39,893,868
Capital Assets
Depreciated:
Buildings and
Improvements $ 161,711,482 $ 2,723,963 $ 0 $ 164,435,445
Other Capital Assets 17,927,787 1,280,744 (697,912) 18,510,619
Depreciated $ 179,639,269 $ 4,004,707 $ (697,912) $ 182,946,064
Less Accumulated
Depreciation For:
Buildings and
Improvements $ 67,306,203 $ 3,770,467 $ 0 $ 71,076,670
Other Capital Assets 14,448,227 1,034,032 (695,151) 14,787,108
Total Accumulated
Depreciation $ 81,754,430 $ 4,804,499 $ (695,151) $ 85,863,778

Depreciated, Net $ 97,884,839 $ (799,792) $ (2,761) $ 97,082,286
Governmental Activities
Capital Assets, Net $ 110,528,514 $ 27,691,116 $ (1,243,476) $ 136,976,154
Depreciation expense was charged to functions of the discretely presented

Maury County School Department as follows:
Instruction $ 3,089,962
Support Services 1,513,784
Operation of Non-instructional Services 200,753
Total Depreciation Expense -

Governmental Activities $ 4,804,499
58
C. Construction Commitments
At June 30, 2016, the discretely presented Maury County School Department
had uncompleted construction contracts of approximately $22,307,022 in the
Education Capital Projects Fund for construction and renovations at Central
High School. Funding has been received for these future expenditures.
D. Interfund Receivables, Payables, and Transfers
The composition of interfund balances as of June 30, 2016, was as follows:
Due to/from Other Funds:
Receivable Fund Payable Fund Amount
Discretely Presented School

Department:
General Purpose School Nonmajor governmental fund $ 106,465
This balance 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.
Interfund Transfers:
Interfund transfers for the year ended June 30, 2016, consisted of the
following amounts:
Primary Government
Transfers In
General
Debt Nonmajor
Service Governmental
Transfers Out Fund Funds
General Fund $ 198,646 $ 0

General Debt Service Fund 0 67,564
Total $ 198,646 $ 67,564
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Transfer In
General
Purpose
School
Transfer Out Fund
Nonmajor governmental funds $ 141,532
Transfers are used to move revenues from the fund that statute or budget
requires to collect them to the fund that statute or budget requires to expend
them and to use unrestricted revenues collected in the General Fund to
finance various programs accounted for in other funds in accordance with
budgetary authorizations.
E. Long-term Obligations
Primary Government (Excluding Maury Regional Hospital)
General Obligation Bonds, Notes, and Other Loans
Maury County issues general obligation bonds and other loans to provide
funds for the acquisition and construction of major capital facilities for the
primary government and the discretely presented School Department. In
addition, general obligation bonds have been issued to refund other general
obligation bonds. Capital outlay notes are also issued to fund capital
facilities and other capital outlay purchases, such as equipment.
General obligation bonds, capital outlay notes, and other loans are direct
obligations and pledge the full faith and credit of the government. General
obligation bonds, capital outlay notes, and other loans outstanding were
issued for original terms of up to 21 years for bonds, five years for notes, and
17 years for other loans. Repayment terms are generally structured with
increasing amounts of principal maturing as interest requirements decrease
over the term of the debt. All bonds, notes, and other loans included in
long-term debt as of June 30, 2016, will be retired from the General Debt
Service Fund.
General obligation bonds, capital outlay notes, and other loans outstanding
as of June 30, 2016, for governmental activities are as follows:
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Original
Interest Final Amount Balance
Type Rate Maturity of Issue 6-30-16
General Obligation Bonds 2 to 5% 4-1-36 $ 85,195,000 $ 58,530,000

General Obligation Bonds -
Refunding 1 to 4 4-1-28 38,470,000 31,335,000
Capital Outlay Notes 1.5 to 4 4-1-20 7,030,993 2,685,993
Other Loans 4.85 9-15-27 4,408,000 3,078,582
In a prior year, Maury County entered into a loan agreement with the
Tennessee State School Board Authority. Under this loan agreement, the
authority loaned the county $4,408,000 for rehabilitation and repairs of
county school buildings. This loan earns interest monthly based upon the
local government investment pool rate, which is netted against the annual
principal payment. The county pays an annual administrative fee of $3,526
under this agreement. The loan retirement schedule also includes equal
monthly payments of interest; however, the county will semi-annually receive
a federal interest subsidy, which will offset these payments.
The annual requirements to amortize all general obligation bonds, notes, and
other loans outstanding as of June 30, 2016, including interest payments and
other loan fees, are presented in the following tables:
Year Ending Bonds

June 30 Principal Interest Total
2017 $ 4,850,000 $ 3,638,382 $ 8,488,382

2018 5,905,000 3,452,482 9,357,482
2019 5,965,000 3,216,882 9,181,882
2020 6,245,000 2,993,532 9,238,532
2021 5,020,000 2,710,432 7,730,432
2022-2026 26,430,000 9,699,497 36,129,497
2027-2031 19,015,000 4,936,845 23,951,845
2032-2036 16,435,000 1,855,184 18,290,184
Total $ 89,865,000 $ 32,503,236 $ 122,368,236
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Year Ending Notes
2017 2,417,227 98,262 2,515,489

2018 88,258 4,031 92,289
2019 89,582 2,708 92,290
2020 90,926 1,364 92,290
Total $ 2,685,993 $ 106,365 $ 2,792,358
Year Ending Other Loans

June 30 Principal Interest (1) Other Fees Total
0
2017 $ 275,052 $ 213,700 $ 3,526 $ 492,278
2018 275,052 213,700 3,526 492,278
2019 275,052 213,700 3,526 492,278
2020 275,052 213,700 3,526 492,278
2021 275,052 213,700 3,526 492,278
2022-2026 1,375,260 1,068,500 17,630 2,461,390
2027-2028 328,062 215,317 4,114 547,493
Total $ 3,078,582 $ 2,352,317 $ 39,374 $ 5,470,273
(1) Includes interest requirements on Qualified School Construction Bonds,

Series 2010, before federal interest rate subsidy.
There is $12,438,356 available in the General Debt Service Fund to service

long-term debt. Debt per capita, including bonds, notes, and other loans,
totaled $1,181, based on the 2010 federal census.
Changes in Long-term Obligations
Long-term obligations activity for the primary government (excluding the

Maury Regional Hospital) for the year ended June 30, 2016, was as follows:
62
Bonds Notes
Balance, July 1, 2015 $ 95,855,000 $ 4,560,000

Additions 20,150,000 355,993
Reductions (26,140,000) (2,230,000)
Balance, June 30, 2016 $ 89,865,000 $ 2,685,993
Balance Due Within One Year $ 4,850,000 $ 2,417,227
Other Compensated
Loans Absences
Balance, July 1, 2015 $ 3,353,634 $ 1,288,702

Additions 0 1,321,310
Reductions (275,052) (1,307,239)
Balance, June 30, 2016 $ 3,078,582 $ 1,302,773
Balance Due Within One Year $ 275,052 $ 937,374
Analysis of Noncurrent Liabilities Presented on Exhibit A:
Total Noncurrent Liabilities, June 30, 2016 $ 96,932,348

Less: Due Within One Year (8,479,653)
Add: Unamortized Premium on Debt 8,074,003
Noncurrent Liabilities - Due in

More Than One Year - Exhibit A $ 96,526,698
Compensated absences will be paid from the employing funds, primarily the
General and Highway/Public Works funds.
During the year, the School Department contributed $359,994 to the primary
government to service some of the debt issued on its behalf by the primary
government.
Advance Refunding
On December 22, 2015, Maury County advance refunded a general obligation

bond issue with a separate general obligation bond issue. The county issued
$20,150,000 of general obligation refunding bonds to provide resources to
purchase U.S. government securities that were placed in an irrevocable trust
to generate resources for all future debt service payments of the refunded
debt. As a result, the refunded bonds are considered defeased, and the
63
liability has been removed from the countys long-term debt. As a result of
the advance refunding, total debt service payments over the next 12 years
will be reduced by $1,834,321, and an economic gain (difference between the
present value of the debt service payments of the refunded and refunding
bonds) of $1,700,300 was obtained.
Maury County Solid Waste Disposal Fund (Enterprise Fund)
Long-term obligations activity for the Solid Waste Disposal Fund (enterprise
fund) for the year ended June 30, 2016, was as follows:
Postclosure Compensated
Care Costs Absences
Balance, July 1, 2015 $ 394,959 $ 58,226

Additions 46,412 44,154
Reductions (36,381) (52,188)
Balance, June 30, 2016 $ 404,990 $ 50,192
Balance Due Within One Year $ 17,541 $ 28,503
Analysis of Noncurrent Liabilities Presented on Exhibit D:
Total Noncurrent Liabilities, June 30, 2016 $ 455,182

Less: Due Within One Year (46,044)

More Than One Year - Exhibit D-1 $ 409,138
Long-term obligations activity for the discretely presented Maury County

School Department for the year ended June 30, 2016, was as follows:
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Governmental Activities: Other
Compensated Postemployment
Absences Benefits
Balance, July 1, 2015 $ 3,453,761 $ 11,588,009

Additions 909,854 3,510,254
Reductions (1,226,052) (1,721,531)
Balance, June 30, 2016 $ 3,137,563 $ 13,376,732
Balance Due Within One Year $ 1,262,833 $ 0
Net Pension
Liability -
Legacy Plan*
Balance, July 1, 2015 $ (188,780)

Additions 16,251,920
Reductions (15,583,098)
Balance, June 30, 2016 $ 480,042
Balance Due Within One Year $ 0
*The Legacy Plan had a Net Pension Asset balance at June 30, 2015.
Analysis of Noncurrent Liabilities Presented on Exhibit A:
Total Noncurrent Liabilities, June 30, 2016 $ 16,994,337

Less: Due Within One Year (1,262,833)

More Than One Year - Exhibit A $ 15,731,504
Compensated absences will be paid from the employing funds, primarily the
General Purpose School and School Federal Projects funds. Other
postemployment benefits will be paid from the General Purpose School Fund.
F. On-Behalf Payments Discretely Presented Maury County School

Department
The State of Tennessee pays health insurance premiums for retired teachers
on-behalf of the Maury County School Department. These payments are
made by the state to the Local Education Group Insurance Plan and the
Medicare Supplement Plan. Both of these plans are administered by the
State of Tennessee and reported in the states Comprehensive Annual
65
Financial Report. Payments by the state to the Local Education Group
Insurance Plan and the Medicare Supplement Plan for the year ended
June 30, 2016, were $434,355 and $105,213, respectively. The School
Department has recognized these on-behalf payments as revenues and
expenditures in the General Purpose School Fund.
G. Short-term Debt
Maury County issued tax anticipation notes in advance of property tax

collections and deposited the proceeds in the General Purpose School Fund.
These notes were necessary because funds were not available to meet
obligations coming due before current tax collections. Short-term debt
activity for the year ended June 30, 2016, was as follows:
Balance Balance
7-1-15 Issued Paid 6-30-16
Tax Anticipation
Notes $ 0 $ 1,080,856 $ (1,080,856) $ 0
V. OTHER INFORMATION
A. Risk Management
Maury County (excluding the Maury Regional Hospital) is exposed to various

risks related to general liability, property, and casualty losses. The county
decided it was more economically feasible to join a public entity risk pool
instead of purchasing commercial insurance for general liability, property,
and casualty coverage. The county joined the Local Government Property
and Casualty Fund (LGPCF), which is a public entity risk pool established by
the Tennessee County Services Association, an association of member
counties. The county pays an annual premium to the LGPCF for its general
liability, property, and casualty insurance coverage. 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.
Maury County (excluding the Maury Regional Hospital) and the discretely
presented Maury County School Department participate in the Local
Government Workers Compensation Fund (LGWCF), a public entity risk
pool established by the Tennessee County Services Association, an
association of member counties, to provide for liabilities arising under the
workers compensation law. In accordance with Sections 12-9-101 through
12-9-109, Tennessee Code Annotated (TCA), inclusive, local governments are
eligible to participate. The creation of the LGWCF provides for it to be
self-sustaining through member premiums. The LGWCF reinsures through
commercial insurance companies for claims exceeding $500,000 for each
insured event.
66
The county (excluding the Maury Regional Hospital) continues to carry
commercial insurance for employees health insurance. Settled claims have
not exceeded this commercial coverage in any of the past three fiscal years.
The county does not allow pre-65 age retirees to stay in the health insurance
program.
The discretely presented Maury County School Department continues to

carry commercial insurance for all other risks of loss, including general
liability, property, and casualty. Settled claims have not exceeded this
commercial coverage in any of the past three fiscal years.
The discretely presented Maury County School Department participates in

the Local Education Group Insurance Fund (LEGIF), a public entity risk pool
established to provide a program of health insurance coverage for employees
of local education agencies. In accordance with Section 8-27-301, TCA, all
local education agencies are eligible to participate. The LEGIF is included in
the Comprehensive Annual Financial Report of the State of Tennessee, but
the state does not retain any risk for losses by this fund. Section 8-27-303,
TCA, provides for the LEGIF to be self-sustaining through member premiums.
B. Accounting Changes
Provisions of Governmental Accounting Standards Board (GASB) Statement

No. 72, Fair Value Measurement and Application; Statement No. 73,
Accounting and Financial Reporting for Pensions and Related Assets that are
not within the Scope of GASB Statement No. 68, and Amendments to Certain
Provisions of GASB Statements No. 67 and No. 68; Statement No. 76, The
Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments; Statement No. 79, Certain External Investment Pools and Pool
Participants became effective for the year ended June 30, 2016.
GASB Statement No. 72, establishes general principles for measuring fair
value and standards of accounting and financial reporting for assets and
liabilities measured at fair value. This standard supersedes previous
statements as they relate to measuring fair value of certain assets and
liabilities.
GASB Statement No. 73, established accounting and reporting requirements

for pensions that are not administered through a trust account and also
addresses changes made to Statements No. 67 and No. 68. The changes to
Statements No. 67 and No. 68 require new RSI disclosures concerning plan
investments and address specific payables to defined benefit plans.
GASB Statement No. 76, addresses changes made to the hierarchy of

generally accepted accounting principles. This standard supersedes
Statement No. 55 and reduces the hierarchy from four to two categories.
GASB Statement No. 79, addresses issues related to certain external

investment pools and pool participants because of changes in Security and
67
Exchange rules relative to money market funds. This standard establishes
criteria for an external investment pool to qualify for making the election to
measure all of its investments at amortized cost rather than fair value for
financial reporting purposes standards.
C. Subsequent Events
On August 31, 2016, Jim Dooley left the Office of Property Assessor and was
succeeded by Bobby Daniels.
On September 8, 2016, Maury County issued general obligation school bonds

totaling $21,300,000 for the acquisition of land, design and site development
for county schools, and constructing, improving, renovating, and equipping of
county schools and school facilities.
D. Contingent Liabilities
The county is involved in several pending lawsuits. The county attorney

estimates that the potential claims against the county not covered by
insurance resulting from such litigation would not materially affect the
countys financial statements.
E. Change in Administration
On August 13, 2015, Cynthia Johnson left the Office of Director of Schools
and was succeeded by Dr. Chris Marczak.
F. Landfill Closure/Postclosure Care Costs
Maury County has active permits on file with the state Department of
Environment and Conservation for a sanitary landfill and a demolition
landfill. The county has provided financial assurances for estimated
postclosure liabilities as required by the State of Tennessee. These financial
assurances are on file with the Department of Environment and
Conservation.
State and federal laws and regulations require the county to place a final
cover on its sanitary landfill site when it stops accepting waste and to
perform certain maintenance and monitoring functions at the site for
30 years after closure. Although closure and postclosure care costs will be
paid only near or after the date that the landfill stops accepting waste, the
county reports a portion of these closure and postclosure care costs as an
operating expense in each period based on landfill capacity used as of each
balance sheet date. Maury County closed its sanitary landfill in 1997. The
$404,990 reported as postclosure care liability at June 30, 2016, represents
amounts based on what it would cost to perform all postclosure care in 2016.
Actual costs may be higher due to inflation, changes in technology, or
changes in regulations.
68
G. Joint Ventures
The Maury County Regional Airport Authority is a joint venture in which the
county and the cities of Columbia and Mount Pleasant participate. The
authority is governed by a three-member board comprising one appointee
from the county and one appointee from each city. During the year ended
June 30, 2016, Maury County contributed $40,000 to the authority.
The Twenty-second Judicial District Drug Task Force (DTF) is a joint venture
formed by an interlocal agreement between the district attorney general of
the Twenty-second Judicial District, Lawrence, Giles, Maury, and Wayne
counties, and various cities within these counties. The purpose of the DTF is
to provide multi-jurisdictional law enforcement to promote the investigation
and prosecution of drug-related activities. Funds for the operations of the
DTF come primarily from federal grants, drug fines, and the forfeiture of
drug-related assets to the DTF. The DTF is overseen by the district attorney
general and is governed by a board of directors including the district attorney
general, sheriffs, and police chiefs of participating law enforcement agencies
within each judicial district. Maury County did not contribute any funds to
the DTF for the year ended June 30, 2016. The DTF Director is a full-time
employee of the Maury County Sheriffs Department.
Maury County and the discretely presented Maury County School

Department do not have equity interests in any of the above-noted joint
ventures. Complete financial statements for the Maury County Regional
Airport Authority, and the Twenty-second Judicial District DTF can be
obtained from their administrative offices at the following addresses:
Administrative Offices:
Maury County Regional Airport Authority

1200 North Main Street
Mt. Pleasant, TN 38474
Office of District Attorney General

Twenty-second Judicial District Drug Task Force
P.O. Box 852
Lawrenceburg, TN 38464
H. Jointly Governed Organization
The Tennessee Southern Railroad Authority (TSRA) was created by the

county, in conjunction with Giles and Lawrence counties. The TSRAs board
includes the county mayors and a representative appointed by the respective
County Commissions from each of the three counties, and a representative
from the cities of Mt. Pleasant and Lawrenceburg. However, the counties
and cities do not have any ongoing financial interest or responsibility for the
entity. The majority of TSRAs funding is received from various grants from
69
the Tennessee Department of Transportation. Maury County made no
appropriations to the TSRA during the year ended June 30, 2016.
I. Retirement Commitments
1. Tennessee Consolidated Retirement System (TCRS)
Primary Government
General Information About the Pension Plan
Plan Description. Employees of Maury County, non-certified

employees of the discretely presented Maury County School
Department, and employees of the discretely presented Maury County
Water System are provided a defined benefit pension plan through the
Public Employee Retirement Plan, an agent multiple-employer
pension plan administered by the TCRS. The primary government
employees comprised 59.69 percent, the non-certified employees of the
discretely presented School Department comprised 39.74 percent, and
the discretely presented Maury County Water System comprised .57
percent of the plan based on contribution data. The TCRS was created
by state statute under Tennessee Code Annotated (TCA), Title 8,
Chapters 34-37. The TCRS Board of Trustees is responsible for the
proper operation and administration of the TCRS. The Tennessee
Treasury Department, an agency in the legislative branch of state
government, administers the plans of the TCRS. The TCRS issues a
publicly available financial report that can be obtained at
www.treasury.tn.gov/tcrs.
Benefits Provided. TCA, Title 8, Chapters 34-37 establish the benefit

terms and can be amended only by the Tennessee General Assembly.
The chief legislative body may adopt the benefit terms permitted by
statute. Members are eligible to retire with an unreduced benefit at
age 60 with five years of service credit or after 30 years of service
credit regardless of age. Benefits are determined by a formula using
the members highest five consecutive year average compensation and
the members 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
70
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, 2015, the following employees were covered by the benefit
terms:
Inactive Employees or Beneficiaries Currently

Receiving Benefits 306
Inactive Employees Entitled to But Not Yet Receiving
Benefits 607
Active Employees 921
Total 1,834
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
their salary. Maury 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, 2015, the Actuarial Determined
Contribution (ADC) for Maury County was $1,188,886 based on a rate
of 4.62 percent of covered payroll. By law, employer contributions are
required to be paid. The TCRS may intercept Maury Countys state
shared taxes if required employer contributions are not remitted. The
employers 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)
Maury Countys net pension liability (asset) was measured as of

June 30, 2015, and the total pension liability (asset) used to calculate
net pension liability (asset) was determined by an actuarial valuation
as of that date.
Actuarial Assumptions. The total pension liability as of the

June 30, 2015, actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the
measurement:
71
Inflation 3%
Salary Increases Graded Salary Ranges from 8.97%
to 3.71% Based on Age, Including
Inflation, Averaging 4.25%
Investment Rate of Return 7.5%, Net of Pension Plan
Investment Expenses, Including
Inflation
Cost of Living Adjustment 2.5%
Mortality rates were based on actual experience from the June 30,
2012, actuarial experience study, adjusted for some of the expected
future improvement in life expectancy.
The actuarial assumptions used in the June 30, 2015, actuarial

valuation were based on the results of an actuarial experience study
performed for the period July 1, 2008, through June 30, 2012. The
demographic assumptions were adjusted to more closely reflect actual
and expected future experience.
The long-term expected rate of return on pension plan investments

was established by the TCRS Board of Trustees in conjunction with
the June 30, 2012, actuarial experience study by considering the
following three techniques: (1) the 25-year historical return of the
TCRS at June 30, 2012, (2) the historical market returns of asset
classes from 1926 to 2012 using the TCRS investment policy asset
allocation, and (3) capital market projections that were utilized as a
building-block method in which best-estimate ranges of expected
future real rate of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset
class. Four sources of capital market projections were blended and
utilized in the third technique. The blended capital market projection
established the long-term expected rate of return by weighting the
expected future real rate of return by the target asset allocation
percentage and by adding inflation of three percent. The target
allocation and best estimate of arithmetic real rates of return for each
major asset class are summarized in the following table:
72
Percentage
Long-term
Expected Percentage
Real Rate Target
Asset Class of Return Allocations
U.S. Equity 6.46 % 33 %

Developed Market
International Equity 6.26 17
Emerging Market
Private Equity and
Strategic Lending 4.61 8
U.S. Fixed Income 0.98 29
Real Estate 4.73 7
Short-term Securities 0.00 1
Total 100 %

was established by the TCRS Board of Trustees as 7.5 percent based
on a blending of the three factors described above.
Discount Rate. The discount rate used to measure the total pension
liability was 7.5 percent. The projection of cash flows used to
determine the discount rate assumes that employee contributions will
be made at the current rate and that contributions from Maury
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 plans
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.
73
Changes in the Net Pension Liability (Asset)
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a) (b) (a)-(b)
Balance, July 1, 2014 $ 54,246,601 $ 59,485,081 $ (5,238,480)
Changes for the year:

Service Cost $ 2,089,934 $ 0 $ 2,089,934
Interest 4,154,887 0 4,154,887
Differences Between Expected
and Actual Experience 408,227 0 408,227
Contributions-Employer 0 1,188,886 (1,188,886)
Contributions-Employees 0 1,288,204 (1,288,204)
Net Investment Income 0 1,840,671 (1,840,671)
Benefit Payments, Including
Refunds of Employee
Contributions (1,876,071) (1,876,071) 0
Administrative Expense 0 (46,288) 46,288
Other Changes 0 0 0
Net Changes $ 4,776,977 $ 2,395,402 $ 2,381,575
Balance, June 30, 2015 $ 59,023,578 $ 61,880,483 $ (2,856,905)
Allocation of Agent Plan Changes in the Net Pension Liability (Asset)
Plan Net
Total Fiduciary Pension
Pension Net Liability
Liability Position (Asset)
Primary Government 59.69% $ 35,231,174 $ 36,936,460 $ (1,705,287)
Water System 0.57% 336,434 352,719 (16,284)
School Department 39.74% 23,455,970 24,591,304 (1,135,334)
Total $ 59,023,578 $ 61,880,483 $ (2,856,905)
Sensitivity of the Net Pension Liability (Asset) to Changes in the

Discount Rate. The following presents the net pension liability (asset)
of Maury County calculated using the discount rate of 7.5 percent, as
well as what the net pension liability (asset) would be if it was
74
calculated using a discount rate that is one percentage point lower
(6.5%) or one percentage point higher (8.5%) than the current rate:
Current
1% Discount 1%
Decrease Rate Increase
Maury County 6.5% 7.5% 8.5%
Net Pension Liability $ 5,161,664 $ (2,856,905) $ (9,503,064)
Pension Expense (Income) and Deferred Outflows of

Resources and Deferred Inflows of Resources Related to
Pensions
Pension Expense. For the year ended June 30, 2016, Maury County
recognized pension expense of $108,442.
Deferred Outflows of Resources and Deferred Inflows of Resources. For

the year ended June 30, 2016, Maury County reported deferred
outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Deferred
Outflows Inflows
of of
Resources Resources
Difference Between Expected and
Actual Experience $ 340,189 $ 344,758
Net Difference Between Projected and
Actual Earnings on Pension Plan
Investments 2,113,210 2,767,295
Contributions Subsequent to the
Measurement Date of June 30, 2015 (1) 1,222,003 N/A
Total $ 3,675,402 $ 3,112,053
(1) The amount shown above for Contributions Subsequent to the

Measurement Date of June 30, 2015, will be recognized as a
reduction (increase) to net pension liability (asset) in the
following measurement period.
75
Allocation of Agent Plan Deferred Outflows of Resources and
Deferred Inflows of Resources
Deferred Deferred
Outflows of Inflows of
Resources Resources
Primary Government $ 2,171,566 $ 1,857,584
Water System 40,648 17,739
School Department 1,463,188 1,236,730
Total $ 3,675,402 $ 3,112,053
Amounts reported as deferred outflows of resources, with the

exception of contributions subsequent to the measurement date, and
deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year Ending
June 30 Amount
2017 $ (412,280)
2018 (412,280)
2019 (412,280)
2020 510,151
2021 68,038
Thereafter 0
In the table shown above, positive amounts will increase pension

expense while negative amounts will decrease pension expense.
Non-certified Employees
Plan Description. As noted above under the primary government,

employees of Maury County, non-certified employees of the discretely
presented Maury County School Department, and the discretely
presented Maury County Water System are provided a defined benefit
pension plan through the Public Employee Retirement Plan, an agent
multiple-employer pension plan administered by the TCRS. The
primary government employees comprise 59.69 percent, the non-
certified employees of the discretely presented School Department
76
comprise 39.74 percent, and the discretely presented Water System
comprise .57 percent of the plan based on contribution data.
Certified Employees
Teacher Retirement Plan
Plan Description. Teachers of the Maury County School Department

with membership in the TCRS before July 1, 2014, are provided with
pensions through the Teacher Legacy Pension Plan, a cost-sharing
Teacher Legacy Pension Plan is closed to new membership. Teachers
with membership in the TCRS after June 30, 2014, are provided with
pensions through a legally separate plan referred to as the Teacher
Retirement Plan, a cost-sharing multiple-employer pension plan
administered by the TCRS. The TCRS was created by state statute
under Tennessee Code Annotated (TCA), Title 8, Chapters 34-37. The
TCRS Board of Trustees is responsible for the proper operation and
administration of all employer pension plans in the TCRS. The
Tennessee Treasury Department, an agency in the legislative branch
of state government, administers the plans of the TCRS. The TCRS
issues a publically available financial report that can be obtained at
www.treasury.tn.gov/tcrs.

Members are eligible to retire with an unreduced benefit at age 65
with five years of service credit or pursuant to the rule of 90 in which
the members age and service credit total 90. Benefits are determined
by a formula using the members highest five consecutive year average
compensation and the members years of service credit. A reduced
early retirement benefit is available to vested members at age 60 or
pursuant to the rule of 80. Members are vested with five years of
service credit. Service related disability benefits are provided
regardless of length of service. Five years of service is required for
non-service related disability eligibility. The service related and non-
service related disability benefits are determined in the same manner
as a service retirement benefit but are reduced ten percent and
include projected service credits. A variety of death benefits is
available under various eligibility criteria. Member and beneficiary
annuitants are entitled to an automatic cost of living adjustment
(COLA) after retirement. A COLA is granted each July for annuitants
retired prior to the second of July of the previous year. The COLA is
based on the change in the consumer price index (CPI) during the
prior calendar year, capped at three percent, and applied to the
current benefit. No COLA is granted if the change in the CPI is less
than one-half percent. A one percent COLA is granted if the CPI
77
change is between one-half percent and one percent. Members who
leave employment may withdraw their employee contributions, plus
any accumulated interest. Under the Teacher Retirement Plan,
benefit terms and conditions, including COLA, can be adjusted on a
prospective basis. Moreover, there are defined cost controls and
unfunded liability controls that provide for the adjustment of benefit
terms and conditions on an automatic basis.
Contributions. Contributions for teachers are established in the

Tennessee General Assembly or by automatic cost controls set out in
law. Teachers are required to contribute five percent of their salary to
the plan. The Local Education Agencies (LEAs) make employer
contributions at the rate set by the Board of Trustees as determined
by an actuarial valuation. Per the statutory provisions governing
TCRS, the employer contribution rate cannot be less than four
percent, except in years when the maximum funded level, approved by
the TCRS Board of Trustees, is reached. By law, employer
contributions for the Teacher Retirement Plan are required to be paid.
The TCRS may intercept the state shared taxes of the sponsoring
governmental entity of the LEA if the required employer contributions
are not remitted. Employer contributions for the year ended June 30,
2016, to the Teacher Retirement Plan were $181,813, which is four
percent of covered payroll. The employer rate, when combined with
member contributions, is expected to finance the costs of benefits
earned by members during the year, the cost of administration, as
well as an amortized portion of any unfunded liability.
Pension Liabilities (Assets), Pension Expense, and Deferred

Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
Pension Liabilities (Assets). At June 30, 2016, the Maury County

School Department reported an asset of $43,863 for its proportionate
share of the net pension asset. The net pension asset was measured
as of June 30, 2015, and the total pension liability used to calculate
the net pension asset was determined by an actuarial valuation as of
that date. The Maury County School Departments proportion of the
net pension asset was based on the Maury County School
Departments share of contributions to the pension plan relative to the
contributions of all participating LEAs. At the measurement date of
June 30, 2015, the Maury County School Departments proportion was
1.090316 percent.
Pension Expense. For the year ended June 30, 2016, the Maury
County School Department recognized pension expense of $57,484.
78
the year ended June 30, 2016, the Maury County School Department
reported deferred outflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows Inflows
of of
Resources Resources

Actual Experience $ 0 $ 14,277
Net Difference Between Projected

and Actual Earnings on Pension
Plan Investments 3,546 0
LEA's Contributions Subsequent to the

Measurement Date of June 30, 2015 181,813 N/A
Total $ 185,359 $ 14,277
The Maury County School Departments employer contributions of

$181,813, reported as pension related deferred outflows of resources
subsequent to the measurement date, will be recognized as an
increase of net pension liability (asset) in the year ending June 30,
2017. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year Ending
June 30 Amount
2017 $ (303)
2018 (303)
2019 (303)
2020 (303)
2021 (1,190)
Thereafter (8,328)
In the table above, positive amounts will increase pension expense,

while negative amounts will decrease pension expense.
Actuarial Assumptions. The total pension liability in the June 30,

2015, actuarial valuation was determined using the following
measurement:
79
Inflation 3%
Inflation
Mortality rates are customized based on the June 30, 2012, actuarial
experience study and some included adjustment for expected future
improvement in life expectancy.


allocation and best estimates of arithmetic real rates of return for
each major asset class are summarized in the following table:
80
Percentage
Long-term
Expected Percentage
Real Rate Target
U.S. Equity 6.46 % 33 %

Developed Market
Emerging Market
Private Equity and
Real Estate 4.73 7
Total 100 %

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

to Changes in the Discount Rate. The following presents the Maury
County School Departments proportionate share of the net pension
liability (asset) calculated using the discount rate of 7.5 percent, as
well as what the Maury County School Departments proportionate
share of the net pension liability (asset) would be if it was calculated
using a discount rate that is one percentage point lower (6.5%) or one
percentage point higher (8.5%) than the current rate:
81
School Department's Current
Proportionate Share of 1% Discount 1%
the Net Pension Decrease Rate Increase
Liability (Asset) 6.5% 7.5% 8.5%
Net Pension Liability $ 7,778 $ (43,863) $ (81,737)
Pension Plan Fiduciary Net Position. Detailed information about the

pension plans fiduciary net position is available in a separately issued
TCRS financial report.
Teacher Legacy Pension Plan
Plan Description. Teachers of the Maury County School Department

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

Members of the Teacher Legacy Pension Plan are eligible to retire
with an unreduced benefit at age 60 with five years of service credit or
after 30 years of service credit regardless of age. Benefits are
determined by a formula using the members highest five consecutive
year average compensation and the members years of service credit.
A reduced early retirement benefit is available to vested members at
age 55. Members are vested with five years of service credit. Service
related disability benefits are provided regardless of length of service.
Five years of service is required for non-service related disability
eligibility. The service related and non-service related disability
benefits are determined in the same manner as a service retirement
benefit but are reduced ten percent and include projected service
credits. A variety of death benefits is available under various
eligibility criteria. Member and beneficiary annuitants are entitled to
82
an automatic cost of living adjustment (COLA) after retirement. A
COLA is granted each July for annuitants retired prior to the second
of July of the previous year. The COLA is based on the change in the
consumer price index (CPI) during the prior calendar year, capped at
three percent, and applied to the current benefit. No COLA is granted
if the change in the CPI is less than one-half percent. A one percent
COLA is granted if the CPI change is between one-half and one
percent. A member who leaves employment may withdraw their
employee contributions, plus any accumulated interest. Under the
Teacher Legacy Pension Plan, benefit terms and conditions, including
COLAs can be adjusted on a prospective basis. Moreover, there are
defined cost controls and unfunded liability controls that provide for
the adjustment of benefit terms and conditions on an automatic basis.
Contributions. Contributions for teachers are established in the

Tennessee General Assembly. Teachers are required to contribute five
percent of their salaries. The Local Education Agencies (LEAs) make
employer contributions at the rate set by the Board of Trustees as
determined by an actuarial valuation. By law, employer contributions
for the Teacher Legacy Pension Plan are required to be paid. The
TCRS may intercept the state shared taxes of the sponsoring
governmental entity of the LEA if the required employer contributions
are not remitted. Employer contributions by the Maury County School
Department for the year ended June 30, 2016, to the Teacher Legacy
Pension Plan were $3,827,082, which is 9.04 percent of covered
payroll. The employer rate, when combined with member
contributions, is expected to finance the costs of benefits earned by
members during the year, the cost of administration, as well as an
amortized portion of any unfunded liability.
Pension Liabilities (Assets), Pension Expense, and Deferred

Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
Pension Liability (Assets). At June 30, 2016, the Maury County School
Department reported a liability of $480,042 for its proportionate share
of the net pension liability (asset). The net pension liability (asset)
was measured as of June 30, 2015, and the total pension liability used
to calculate the net pension liability (asset) was determined by an
actuarial valuation as of that date. The Maury County School
Departments proportion of the net pension liability (asset) was based
on the Maury County School Departments long-term share of
contributions to the pension plan relative to the contributions of all
participating LEAs. At the measurement date of June 30, 2015, the
Maury County School Departments proportion was 1.171881 percent.
The proportion measured at June 30, 2014, was 1.161760 percent.
83
Negative Pension Expense. For the year ended June 30, 2016, the
Maury County School Department recognized negative pension
expense of $398,551.

the year ended June 30, 2016, the Maury County School Department
reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows
of of
Resources Resources

Actual Experience $ 385,254 $ 7,471,931
Investments 8,668,063 11,767,367
Changes in Proportion of Net Pension
Liability (Asset) 108,223 74,596
LEA's Contributions Subsequent to the
Measurement Date of June 30, 2015 3,827,082 N/A
Total $ 12,988,622 $ 19,313,894
The Maury County School Departments employer contributions of

$3,827,082 reported as pension related deferred outflows of resources
subsequent to the measurement date, will be recognized as an
increase in net pension asset in the year ending June 30, 2017. Other
amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized in pension
expense as follows:
Year Ending
June 30 Amount
2017 $ (3,166,050)
2018 (3,166,050)
2019 (3,166,050)
2020 756,406
2021 (1,410,610)
Thereafter 0
In the table above, positive amounts will increase pension expense,

while negative amounts will decrease pension expense.
84
Actuarial Assumptions. The total pension liability in the June 30,
2015, actuarial valuation was determined using the following
measurement:
Inflation 3%
Inflation
Mortality rates are customized based on the June 30, 2012, actuarial
experience study and some included adjustments for expected future
improvement in life expectancy.


allocation and best estimates of arithmetic real rates of return for
each major asset class are summarized in the following table:
85
Percentage
Long-term
Expected Percentage
Real Rate Target
U.S. Equity 6.46 % 33 %

Developed Market
Emerging Market
Private Equity and
Real Estate 4.73 7
Total 100 %

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

to Changes in the Discount Rate. The following presents the Maury
County School Departments proportionate share of the net pension
liability (asset) calculated using the discount rate of 7.5 percent, as
well as what the Maury County School Departments proportionate
share of the net pension liability (asset) would be if it was calculated
using a discount rate that is one percentage point lower (6.5%) or one
percentage point higher (8.5%) than the current rate:
86
School Department's Current
Proportionate Share of 1% Discount 1%
the Net Pension Decrease Rate Increase
Liability (Asset) 6.5% 7.5% 8.5%
Net Pension Liability $ 32,727,674 $ 480,042 $ (26,217,194)
Pension Plan Fiduciary Net Position. Detailed information about the

pension plans fiduciary net position is available in a separately issued
TCRS financial report.
2. Deferred Compensation
Maury County offers its employees one deferred compensation plan

established pursuant to IRC Section 457. All costs of administering
and funding this program are the responsibility of plan participants.
The Section 457 plan assets remain the property of the contributing
employees and are not presented in the accompanying financial
statements. IRC Section 457 establishes participation, contribution,
and withdrawal provisions for the plan.
The discretely presented Maury County School Department offers its

employees two deferred compensation plans, one established pursuant
to IRC Section 457 and the other pursuant to IRC Section 403(b). All
costs of administering and funding these programs are the
responsibility of plan participants. The Section 403(b) and Section
457 plan assets remain the property of the contributing employees and
are not presented in the accompanying financial statements. IRC
Sections 403(b) and 457 establish participation, contribution, and
withdrawal provisions for the plans.
J. Other Postemployment Benefits (OPEB)
Plan Description
The School Department participates in the state-administered Local

Education Group Insurance Plan for healthcare benefits. For accounting
purposes, the plan is an agent multiple-employer defined benefit OPEB
plan. Benefits are established and amended by an insurance committee
created by Section 8-27-302, Tennessee Code Annotated, for teachers. Prior to
reaching the age of 65, all members have the option of choosing between the
standard or partnership preferred provider organization (PPO) plan for
healthcare benefits. Subsequent to age 65, members who are also in the
states retirement system may participate in a state-administered
Medicare supplement plan that does not include pharmacy. The plans are
reported in the State of Tennessee Comprehensive Annual Financial
Report (CAFR). The CAFR is available on the states website
at http://tn.gov/finance/article/fa-accfin-cafr.
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Funding Policy
The premium requirements of plan members are established and may be

amended by the insurance committee. The plan is self-insured and financed
on a pay-as-you-go basis with the risk shared equally among the participants.
Claims liabilities of the plan are periodically computed using actuarial and
statistical techniques to establish premium rates. The employer in the plan
develops a contribution policy in terms of subsidizing active employees or
retired employees premiums since the committee is not prescriptive on that
issue. The state provides a partial subsidy to Local Education Agency pre-65
teachers and a full subsidy based on years of service for post-65 teachers in
the Medicare Supplement Plan. During the year ended June 30, 2016, the
discretely presented Maury County School Department made contributions
totaling $1,721,531 for postemployment benefits.
Local
Education
Group
Plan
ARC $ 3,512,000
Interest on the NOPEBO 434,550
Adjustment to the ARC (436,296)
Annual OPEB cost $ 3,510,254
Amount of contribution (1,721,531)
Increase/decrease in NOPEBO $ 1,788,723
Net OPEB obligation, 7-1-15 11,588,009
Net OPEB obligation, 6-30-16 $ 13,376,732
Percentage
Fiscal Annual of Annual Net OPEB
Year OPEB OPEB Cost Obligation
Ended Plan Cost Contributed at Year End
6-30-14 Local Education Group $ 3,185,588 51 %$ 9,887,441

6-30-15 " 3,303,188 49 11,588,009
6-30-16 " 3,510,254 49 13,376,732
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Funded Status and Funding Progress
The funded status of the plan as of July 1, 2015, was as follows:
(in thousands) Local

Education
Group
Plan
Actuarial valuation date 7-1-15

Actuarial accrued liability (AAL) $ 28,831
Actuarial value of plan assets $ 0
Unfunded actuarial accrued liability (UAAL) $ 28,831
Actuarial value of assets as a % of the AAL 0%
Covered payroll (active plan members) $ 56,459
UAAL as a % of covered payroll 51%
Actuarial valuations involve estimates of the value of reported amounts and

assumptions about the probability of events far into the future, and
actuarially determined amounts are subject to continual revision as actual
results are compared to past expectations and new estimates are made about
the future. The Schedule of Funding Progress, presented as required
supplementary information following the notes to the financial statements,
presents multi-year trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
Actuarial Methods and Assumptions
Calculations are based on the types of benefits provided under the terms of
the substantive plan at the time of each valuation and on the pattern of
sharing of costs between the employer and plan members to that point.
Actuarial calculations reflect a long-term perspective. Consistent with that
perspective, actuarial methods and assumptions used include techniques that
are designed to reduce short-term volatility in actuarial accrued liabilities
and the actuarial value of assets.
In the July 1, 2015, actuarial valuation for the Local Education Plan, the
projected unit credit actuarial cost method was used. The actuarial
assumptions included a 3.75 percent investment rate of return (net of
administrative expenses) and an annual health care cost trend rate of 6.5
percent initially. The trend rate will decrease to six percent in fiscal year
2016, and then be reduced by decrements to an ultimate rate of 4.7 percent
by fiscal year 2050. Both rates include a 2.5 percent inflation assumption.
The unfunded actuarial accrued liability is being amortized as a level
percentage of payroll on a closed basis over a 30-year period beginning with
July 1, 2007. Payroll is assumed to grow at a rate of three percent.
89
K. Offices of Accounting and Budgeting and Human Resources
Maury County operates under provisions of Chapter 233, Private Acts of

1963, which provide for a central system of accounting and budgeting
covering funds administered by the county mayor and the road
superintendent. These funds are maintained in the Office of Accounting and
Budgeting under the supervision of the director of accounts and budgets.
Maury County also operates under provisions of Chapter 91, Private Acts of
2004, which provide for an Office of Human Resources under the direction of
the administrative committee of the County Commission. The Office of
Human Resources handles all human resource duties and responsibilities.
L. Purchasing Laws
Offices of County Mayor and Road Superintendent
Purchasing procedures for the Offices of County Mayor and Road

Superintendent are governed by the County Purchasing Law of 1957, Section
5-14-101, et seq., Tennessee Code Annotated (TCA). Purchasing procedures for
the Highway Department are also governed by the Uniform Road Law,
Section 54-7-113, TCA. These statutes require that purchase orders be issued
for all purchases and sealed bids be solicited on purchases exceeding $25,000
for the Offices of County Mayor and Road Superintendent.
Office of Director of Schools
Purchasing procedures for the discretely presented Maury County School

Department are governed by purchasing laws applicable to schools as set
forth in Section 49-2-203, TCA, which provides for the county Board of
Education, through its executive committee (director of schools and chairman
of the Board of Education), to make all purchases. This statute also requires
competitive bids to be solicited through newspaper advertisement on all
purchases exceeding $10,000.
VI. OTHER NOTES MAURY REGIONAL HOSPITAL FUND (ENTERPRISE

FUND)
A. Organization
Maury Regional Hospital is operated and maintained by Maury County,

Tennessee, under authority of and in compliance with the provisions of
Chapter 125 of the Tennessee Private Acts of 1996. The federal, state, and
local governments participated in the cost of constructing and equipping the
hospital under the Hill-Burton Act. For financial reporting purposes, the
hospital is considered an enterprise fund of Maury County, Tennessee.
The hospitals primary mission is to provide healthcare services to the

residents of southern and middle Tennessee, including Giles, Hickman,
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Lawrence, Lewis, Marshall, Maury, Perry, Wayne, and Williamson counties.
The financial statements present the hospital and its component units. The
hospital is comprised of the following operating entities:
Maury Regional Medical Center (MRMC), located in Columbia,

Tennessee, has been in operation since 1953 and presently has a
275-bed capacity with 20 beds designated for skilled nursing care, and
also includes five medical office buildings in its service area.
Marshall Medical Center is an acute-care hospital located in

Lewisburg, Tennessee, which was acquired by the hospital in 1995
and is designated a critical access hospital with 25 licensed beds.
Wayne Medical Center is an acute-care hospital with an 80-bed

capacity located in Waynesboro, Tennessee, and has been leased by
the hospital since 1995.
Additionally, the combined financial statements include the following

blended component units that provide healthcare services that support the
hospitals mission:
Family Health Group (FHG) is a nonprofit corporation, which

acquires, owns, operates, and manages physician practices in the
hospitals service area. The hospital is the sole member of FHG and
funds its operating losses.
Maury Regional Ambulatory Surgery Center (the Surgery Center) is a

nonprofit corporation that provides medical care to non-emergent
patients in the hospitals service area. The hospital is the sole
member of the Surgery Center and funds its operating losses.
Operations at the Surgery Center began in fiscal year 2014.
Maury Regional Healthcare Foundation (the Foundation) is a not-for-

profit organization formed to coordinate the fundraising activities of
the hospital. The hospital is the sole member of the foundation and
appoints all board members. The hospital also funds all operating
expenses of the foundation.
B. Summary of Significant Accounting Policies
Method of Accounting The hospital utilizes the enterprise fund method of

accounting. Revenues and expenses are recorded on the accrual basis using
the economic resources measurement focus.
Estimates The preparation of the combined financial statements in

conformity with accounting principles generally accepted in the United States
of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the combined financial
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statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents Cash and cash equivalents include cash on
hand, deposits in banks, and investments with a maturity of three months or
less when purchased, excluding any amounts whose use is limited by board
designation.
Inventories Inventories consist principally of medical and surgical supplies

and are reported at the lower of cost or market, with cost determined by the
average cost method.
Patient Accounts Receivable Patient accounts receivable are reported net of

both an estimated allowance for contractual adjustments and an estimated
allowance for uncollectible accounts. The contractual allowance represents
the difference between established billing rates and estimated
reimbursement from Medicare, TennCare, and other third-party payer
programs. The bad debt allowance is estimated based upon the age of the
account, prior experience, and any unusual circumstances which affect the
collectability. The hospitals policy does not require collateral or other
security for patient accounts receivable, and the hospital routinely accepts
assignment of, or is otherwise entitled to receive, patient benefits payable
under health insurance programs, plans or policies.
Investments and Assets Limited as to Use Investments and assets limited

as to use are reported at estimated fair value based on quoted market prices.
Interest, dividends, and gains and losses (realized and unrealized) are
included in investment income. The Board has designated certain assets as
limited as to use for future capital improvements. Included in assets limited
as to use is approximately $11,900,000 restricted for future capital additions.
Property, Plant, and Equipment Property, plant, and equipment are

reported at cost or fair value at the date of gift, if donated. The hospital has
established a capitalization threshold of $1,000. Depreciation is calculated by
the straight-line method to allocate the cost of the assets (other than land)
over their estimated useful lives, which range from three to 20 years for
equipment and ten to 40 years for buildings and land improvements.
Equipment held under capital lease obligations is amortized using the
straight-line method over the shorter of the estimated useful life or the lease
term. This amortization is included with depreciation expense and as part of
accumulated depreciation in the combined financial statements. Interest
costs incurred on applicable borrowings outstanding during the construction
period of capital assets is capitalized as part of the cost of acquiring the asset
and is amortized on the same basis as the related capital asset. Costs of
maintenance and repairs are charged to expense when incurred. The
hospital periodically reviews property, plant, and equipment for indications
of potential impairment. Management does not believe any impairment
existed as of June 30, 2016.
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Intangible Assets Intangible assets, including goodwill, are amortized over
their estimated useful life and included in other assets in the combined
financial statements.
Compensated Absences The hospitals employees earn paid time off at

varying rates depending on years of service. An accrual for paid time off is
recorded in the period in which the employee earns the right to the
compensation. Prior to July 1, 2015, employees also earned sick leave
benefits based on varying rates depending on years of service and
accumulated sick leave up to a specified maximum. Employees were not paid
for accumulated sick leave if they left before retirement. However, employees
who retired after the age of 60 could convert accumulated sick leave to
termination payments. The estimated amount of sick leave, which will
ultimately be payable as termination payments totals approximately
$1,090,000 at June 30, 2016, and is reported as a noncurrent liability in the
combined financial statements. The hospitals paid time off policy was
amended effective July 1, 2015, to eliminate future sick pay accruals and
freeze existing sick pay accrual amounts at their June 30, 2015 amounts. In
addition, the accrual for compensated absences at June 30, 2015, was
modified to utilize a years of service factor, which served to reduce the
amount recorded. Due to uncertainties in this estimate, it is at least
reasonably possible that managements estimate could change in 2017.
Net Position Net investment in capital assets consists of capital assets, net
of accumulated depreciation and reduced by the balances of any outstanding
borrowings used to finance the purchase or construction of those assets.
Unrestricted net position is remaining assets that do not meet the definition
of net investment in capital assets. There were no assets in a restricted
position at June 30, 2016.
Net Patient Service Revenue Net patient service revenue is reported as

services are rendered at estimated net realizable amounts, including
estimated retroactive revenue adjustments under reimbursement agreements
with third-party payers. Estimated settlements under third-party
reimbursement agreements are accrued in the period the related services are
rendered and adjusted in future periods as final settlements are determined.
An estimated provision for bad debts is included in net patient service
revenue.
Charity Care The hospital provides care without charge to patients who
meet certain criteria under its charity care policy. Because the hospital does
not pursue collection of amounts determined to qualify as charity care, they
are not reported as net patient service revenue.
Operating Activities The hospital defines operating activities as reported on

the Combined Statement of Revenues, Expenses, and Changes in Net
Position as those that generally result from exchange transactions, such as
payments for providing services and payments for goods and services
received. Non-exchange transactions, including contributions and grants, as
93
well as investment income and interest expense, are considered nonoperating
revenue and expenses.
Contributions and Grants Revenues from contributions and grants are

recognized when all eligibility requirements are met. Contributions and
grants may be restricted for specific operating purposes or for capital
purposes. Amounts that are unrestricted or that are restricted to a specific
operating purpose are reported as nonoperating revenue. Amounts restricted
to capital acquisitions, if any, are reported after nonoperating revenue and
expenses.
Income Taxes The hospital meets the Internal Revenue Service definition of
a governmental unit and is exempt from federal income taxes. As taxable
entities, the owners of the Imaging Center and VMRO account for income
taxes in accordance with Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) 740, Income Taxes. At June 30,
2016, management does not believe the hospital holds any uncertain tax
positions that would require financial statement recognition or disclosure.
Subsequent Events The hospital evaluated all events or transactions that

occurred after June 30, 2016, through November 7, 2016, the date the
combined financial statements were available to be issued. Management did
not note any subsequent events that required recognition or disclosure in the
combined financial statements.
Recently Issued/Adopted Accounting Pronouncements In February 2015, the

Governmental Accounting Standards Board (GASB) issued Statement No. 72,
Fair Value Measurement and Application, which prescribes how
governmental entities should define and measure fair value, provides
guidance on which assets and liabilities should be measured at fair value,
and expands disclosures related to fair value measurements. The statement
amends the definition of fair value currently utilized by GASB and defines
fair value as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at
the measurement date. Fair value is described as an exit price. The
statement assumes that the transaction occurs in the principal, or most
advantageous, market for the asset or liability and fair value is to be
determined using one of three valuation approaches: market, cost, or income.
The market approach uses prices and other relevant information generated
by market transactions involving identical or comparable assets, liabilities, or
a group of assets and liabilities. The cost approach reflects the amount that
would be required to replace the present service capacity of an asset. The
income approach converts future amounts, such as cash flows or income and
expenses, to a single, current, discounted amount. The statement generally
requires investments to be measured at fair value and defines an investment
as a security or other asset that (a) a governmental entity holds primarily for
the purpose of income or profit and (b) has a present service capacity based
solely on its ability to generate cash or be sold to generate cash. A
government entity is permitted in certain circumstances to establish the fair
94
value of an investment that does not have a readily determinable fair value
by using the net asset value per share, or its equivalent, of the investment.
The statement establishes a hierarchy of inputs to valuation techniques used
to measure fair value. That hierarchy has three levels. Level 1 inputs are
quoted prices, unadjusted, in active markets for identical assets or liabilities.
Level 2 inputs are inputs, other than quoted prices, unadjusted, in active
markets for identical assets or liabilities. Level 2 inputs are inputs, other
than quoted prices, included within Level 1 that are observable for the asset
or liability, either directly or indirectly. Level 3 inputs are unobservable
inputs. The provisions of this statement are effective for fiscal years
beginning after June 15, 2015. The hospital adopted this statement during
2016, and it did not have a significant impact on the financial statements.
C. Patient Service Revenue and Accounts Receivable
The hospital has agreements with various third-party payers that provide for
payments to the hospital at amounts different from established rates. The
difference between the rates charged and the estimated payments from
third-party payers is recorded as a reduction of gross patient service charges.
Revenue for patient service charges has been adjusted to the amounts
estimated to be receivable under third-party payer arrangements. Amounts
recorded under these contractual arrangements are subject to review and
final determination by various program intermediaries. Management
believes that adequate provision has been made for any adjustments, which
may result from such reviews. However, due to uncertainties in the
estimates, it is at least reasonably possible that managements estimates will
change in 2017. Net patient service revenue for the year ended June 30, 2016,
increased by approximately $770,000 due to adjustments of estimates or final
settlements of prior periods.
A summary of the payment arrangements with significant third-party payers

follows:
Medicare Inpatient acute care services and outpatient services rendered to

Medicare program beneficiaries are paid primarily on a prospective basis.
These rates vary according to a patient classification system that is based on
clinical diagnosis, procedures utilized, and other factors. The Medicare
program continues to reimburse certain other services based on a per diem or
on a percentage of cost up to predetermined limits. The hospital also receives
additional payments from the Medicare program for providing services to a
disproportionate share of Medicaid (TennCare) and other low income patients
and such amounts are not guaranteed in future periods. Approximately
$11,400,000 of net patient accounts receivable are due from the Medicare
program at June 30, 2016.
TennCare The State of Tennessee's Medicaid waiver program (TennCare)

provides coverage through several managed care organizations. TennCare
reimbursement for both inpatient and outpatient services is based upon
prospectively determined rates and per-diem amounts. Approximately
95
$2,800,000 of net patient accounts receivable are from payers under the
TennCare program at June 30, 2016.
During 2016, the hospital received additional distributions under the

TennCare Essential Access, federal matching, and other programs totaling
approximately $2,100,000. Future distributions under these programs are not
guaranteed. Such amounts are subject to potential recoupment.
Other Payers The hospital has also entered into payment agreements with
certain commercial insurance carriers, health maintenance organizations,
and preferred provider organizations. The basis for payment to the hospital
under these agreements includes prospectively determined rates, discounts
from established charges, and prospectively determined per-diem amounts.
Charity Care The hospital provides care without charge to patients who
meet certain criteria under its charity care policy. Because the hospital does
not pursue collection of amounts determined to qualify as charity care, they
are not reported as net patient revenue. The estimated direct and indirect
costs of providing these services totaled approximately $4,900,000 in 2016.
Such costs are determined using a ratio of cost to charges analysis with
indirect cost allocated under a reasonable and systematic approach.
A reconciliation of the amount of services provided to patients at established

rates to net patient service revenue is as follows at June 30, 2016:
Patient Service Charges $ 1,029,699,503

Less: Estimated Contractual Adjustments (664,863,204)
Less: Provision for Bad Debts (24,139,877)
Less: Charity Care (18,698,743)
Total $ 321,997,679
D. Cash, Cash Equivalents, Certificates of Deposit, Investments, and

Assets Limited As to Use
The carrying amount of deposits and investments included in the hospitals

combined statements of net position is as follows:
Bank Deposits $ 66,278,960

Investments 48,115,571
Total $ 114,394,531
These amounts are included in the combined financial statements as follows:
96
Cash and Cash Equivalents $ 48,958,736
Certificates of Deposit 323,783
Investments 1,988,553
Assets Limited As to Use 63,123,459
Total $ 114,394,531
The hospital holds deposits only in banks participating in the State of

Tennessee Collateral Pool and in banks that provide collateral for all
deposits, or banks that are members of the Federal Deposit Insurance
Corporation (FDIC).
Additionally, the hospitals deposits in financial institutions are required by

state statute to be secured and collateralized by the institutions. Collateral
requirements are not applicable for financial institutions that participate in
the State of Tennessees collateral pool. 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 collateral pool. The securities
pledged to protect these accounts are pledged in the aggregate rather than
against each individual 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.
At June 30, 2016, the hospitals bank balances for deposits totaled
$65,698,291, a majority of which was insured by the FDIC or by the banks
participation in the State of Tennessees collateral pool. Remaining deposits
totaling $251,137 are collateralized by securities held by the financial
institution and pledged as collateral for the hospitals deposits.
The estimated fair values and maturities for investments, all of which were
held in the hospitals name by a custodial bank that is an agent of the
hospital, are as follows at June 30, 2016:
Investment Type Maturity Amount
Mutual Funds - Fixed Income N/A $ 12,042,238

Mutual Funds - Equity N/A 19,315,571
Government Agency Bonds Less than 1 year 501,795
Government Agency Bonds 1 to 5 years 6,593,716
Corporate Bonds Less than 1 year 2,261,553
Corporate Bonds 1 to 5 years 7,400,698
Total $ 48,115,571
Interest Rate Risk As a means to limiting its exposure to fair value losses
by rising interest rates, the hospitals investment policy limits investment in
97
U.S. treasury securities, government agency bonds or notes, corporate bonds,
and municipal bonds to those with maturities of less than five years.
Credit Risk The hospitals investment policy restricts investments in

corporate bonds and municipal bonds to those with a credit rating of at least
BBB and AA, respectively. Mutual funds underlying investments must meet
the same credit ratings as other investments. The credit rating of the
Hospitals corporate and municipal bonds is as follows at June 30, 2016:
Carrying
Rating Amount
AAA $ 307,656
AA 9,949,615
A 5,073,533
BBB 1,426,958
Total $ 16,757,762
Concentration of Credit Risk The hospitals investment policy limits

investments in corporate bonds to 50 percent of total investments with no
security issuer exceeding five percent of total investments and municipal
bonds to 25 percent of total investments with no security issuer exceeding
five percent of total investments. There is no limit on investments in
U.S. treasury securities, government agency bonds, or notes. Mutual funds
containing corporate bonds should not exceed 50 percent of total investments,
and a single mutual fund should not exceed 25 percent of total investments.
Equity investments cannot exceed 15 percent of total investments. An
investment in the equity of a single corporation and a single equity mutual
fund should not exceed five percent and 15 percent, respectively, of total
investments.
Custodial Credit Risk For an investment, custodial credit risk is the risk
that, in the event of the failure of the counterparty, the hospital will not be
able to recover the value of its investment or collateral. All investments are
in the hospitals name at a custodial bank.
E. Property, Plant, and Equipment
A summary of changes in property, plant, and equipment and related

accumulated depreciation for the year ended June 30, 2016, is as follows:
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Balance Additions/ Balance
7-1-15 Transfers Retirements 6-30-16
Capital Assets Depreciated:

Land Improvements $ 5,613,433 $ 248,333 $ (5,000) $ 5,856,766
Buildings 182,723,713 6,247,220 (69,153) 188,901,780
Equipment 174,331,171 10,946,345 (5,284,316) 179,993,200
Total Capital Assets Depreciated $ 362,668,317 $ 17,441,898 $ (5,358,469) $ 374,751,746
Less Accumulated Depreciation For:

Land Improvements $ 4,690,978 $ 219,227 $ (5,000) $ 4,905,205
Buildings 116,113,277 7,695,303 (60,965) 123,747,615
Equipment 142,773,037 8,885,891 (4,577,463) 147,081,465
Total Accumulated Depreciation $ 263,577,292 $ 16,800,421 $ (4,643,428) $ 275,734,285
Depreciated, Net $ 99,091,025 $ 641,477 $ (715,041) $ 99,017,461
Capital Assets Not Depreciated:

Land $ 8,078,966 $ 0 $ (422,294) $ 7,656,672
Construction in Progress 9,624,359 (657,576) 0 8,966,783
Total Capital Assets Not
Depreciated $ 17,703,325 $ (657,576) $ (422,294) $ 16,623,455
Total Capital Assets, Net $ 116,794,350 $ (16,099) $ (1,137,335) $ 115,640,916
During 2016, the hospital capitalized interest expense on construction

projects totaling approximately $187,000. Construction in progress at
June 30, 2016, consisted primarily of facility renovations, and the total
estimated costs required to complete construction in progress is
approximately $10,915,000.
F. Long-term Debt
Long-term debt consists of the following as of June 30, 2016:
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Bonds Payable
Series 2015, Maury County General Obligation Refunding and Public $

Improvement Bonds issued on behalf of the hospital, with interest rates
ranging from 2% to 5%, maturing over a 12 year period, with the final
payment due April 1, 2027. 28,710,000
Series 2012B, Maury County General Obligation Bonds issued on behalf

of the hospital, with interest rates at 2%, with the final
payment due April 1, 2020. 1,325,000
Total Bonds Payable $ 30,035,000
Plus unamortized gain on bond refunding $ 3,568,761

Total Bonds Payable, Net of Unamortized Loss and Premiums $ 33,603,761
Other Long-term Debt

Capital lease obligations - see Note VI.I. $ 1,233,734
Total Other Long-term Debt $ 1,233,734
Total debt $ 34,837,495

Less: current portion 4,038,335
Total long-term debt $ 30,799,160
The hospitals bonds payable are general obligation bonds of Maury County,
Tennessee. The bonds were issued for the purpose of acquiring property and
equipment or the retirement of previously outstanding bonds and notes and
to pay issuance costs and are secured by unlimited ad valorem taxes on all
taxable property within the county.
The Series 2015 Bonds were issued to finance the constructing, repairing,
renovating, and equipping of the hospital in addition to prepaying the
hospitals outstanding notes payable and the remaining portion of the Series
2006 Bonds less $1,420,000 that was paid in 2016.
The Series 2015 Bonds maturing on or after April 1, 2026, are subject to
redemption prior to maturity at the option of the county on April 1, 2025, or
thereafter, at a redemption price of par plus accrued interest.
The hospitals scheduled principal maturities on all long-term debt as of

June 30, 2016, (including the capital lease obligations and excluding
unamortized premiums) follows:
100
Year Ending
June 30 Principal Interest
2017 $ 4,038,335 $ 1,320,463

2018 3,698,855 1,236,066
2019 3,570,245 1,075,296
2020 3,726,299 907,906
2021 3,545,000 732,250
2022-2026 10,670,000 1,691,000
2027-2030 2,020,000 60,600
Total $ 31,268,734 $ 7,023,581
A schedule of changes in long-term debt for the year ended June 30, 2016,
follows:
Amounts Due
Balance Additions/ Payments/ Balance Within
7-1-15 Amortization Maturities 6-30-16 One Year
Bonds payable $ 33,395,000 $ 0 $ (3,360,000) $ 30,035,000 $ 3,285,000

Unamortized premiums 3,911,694 (342,933) 0 3,568,761 0
Other long-term debt 1,946,118 70,000 (782,384) 1,233,734 753,335
Total $ 39,252,812 $ (272,933) $ (4,142,384) $ 34,837,495 $ 4,038,335
G. Pension Plan
Plan Description. Prior to May 1, 1997, all employees of the hospital were
eligible to participate in the Maury Regional Hospital Retirement Plan (the
Plan), a single-employer public retirement system (PERS), accounted for as a
separate entity from the hospital. The purpose of the plan is to provide
retirement, death, and certain other benefits to employees as specified in the
plan. Although it has not expressed any intention to do so, the hospital has
the right under the plan to discontinue its contributions at any time and to
terminate the plan subject to the provisions set forth in ERISA.
The plan was amended effective May 1, 1997, to stop accrual of benefit
service on April 30, 1997, for participants who made an irrevocable election to
participate in the Maury Regional Healthcare System 403(b) plan on
May 1, 1997. Employees hired after May 1, 1997, are not eligible to
participate in the plan.
Benefits Provided. In addition to normal retirement benefits, the plan also

provides for early retirement and death benefits. Retirement benefits are
calculated as a percent of the employees highest average compensation
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during 60 consecutive months of the last 120 months of employment.
Employees earn full retirement benefits once an employee has reached the
age of 65. Early retirement benefits are available once an employee has
reached age 55 and five years of service at a reduced rate based on age.
Death benefits equal the actuarial equivalent value of the employees vested
accrued benefit as of the date of death. An employee who terminates service
for other reasons after five years of credited service will receive retirement
benefits at the normal retirement date.
Employees Covered by Benefit Terms. At April 30, the following employees

were included in the plan:
Active Employees - Accruing Benefits 60

Active Employees - Frozen Benefits 293
Inactive Employees with Deferred Benefits 262
Disabled 7
Inactive Employees Currently Receiving Benefits 550
Total 1,172
Contributions. The hospital funds the plan as contributions are approved by

the Board of Trustees based on an actuarially determined rate recommended
by an independent actuary. The actuarially determined rate is the estimated
amount necessary to finance the costs of benefits earned during the year with
an additional amount to finance any unfunded accrued liability.
Net Pension Liability. The hospitals net pension liability (asset) was
measured as of June 30, 2016, and the total pension liability (asset) used to
calculate net pension liability (asset) was determined by an actuarial
valuation as of April 30, 2016. The total pension liability in the actuarial
valuation was determined using the following actuarial assumptions, applied
to all periods included in the measurement as of April 30:
Inflation 2.5%
Salary Increases 4% to 7.5%
Investment Rate of Return 8.0%
Discount Rate 8.0%
Mortality rates were based on the 1994 Group Annuity Mortality Basic Table
with mortality improvement projected to the valuation year under Projection
Scale AA. The actuarial valuation method used was entry age normal
method.
The long-term expected rate of return on pension plan investments was

determined using a method in which best-estimate ranges of expected future
real rates of return (expected returns, net of pension plan investment expense
and inflation) are developed for each major asset class. The target allocation
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and best estimates of arithmetic real rates of return for each major asset
class are summarized as follows as of April 30:
Long-term
Expected
Target Real Rate
Asset Class Allocations of Return
Large Cap Equities 45.00% 9.25 %

Small Cap Equities 6.00% 11.00
International Equities 10.00% 9.75
Emerging Market Equities 4.00% 12.50
Real Estate 5.00% 8.75
Fixed Income 30.00% 4.25
The pension plans fiduciary net position was projected to be available to

make all projected future benefit payments of current active and inactive
employees assuming the actuarially determined contributions are made each
year, although not required by the funding policy. Therefore, the discount
rate for determining the total pension liability is equal to the long-term
expected rate of return on pension plan investments.
Changes in the Net Pension Liability. Changes in the hospitals net pension
liability are as follows for the year ended June 30, 2016:
Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Position Liability
(a) (b) (a)-(b)
Balance, June 30, 2015 $ 48,390,657 $ 44,585,513 $ 3,805,144
Changes for the year:

Service Cost $ 346,713 $ 0 $ 346,713
Interest 3,781,511 0 3,781,511
Liability Gains or Losses (68,783) 0 (68,783)
Benefit Payments (3,255,490) (3,255,490) 0
Administrative Expenses 0 (210,087) 210,087
Investment Income 0 (1,990,259) 1,990,259
Employer Contributions 0 851,000 (851,000)
Balance, June 30, 2016 $ 49,194,608 $ 39,980,677 $ 9,213,931
The plans fiduciary net position as a percentage of the total pension liability
was approximately 81% as of June 30, 2016.
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The following presents the net pension liability (asset) of the hospital
calculated using a discount rate of 8.0 percent, as well as what the net
pension liability (asset) would be if it was calculated using a discount rate
that is one percentage point lower (7.0%) or one percentage point higher
(9.0%) than the current rate:
Current
1% Discount 1%
Decrease Rate Increase
7.0% 8.0% 9.0%
Net Pension Liability $ 13,928,744 $ 9,213,931 $ 5,130,771
Pension Expense and Deferred Outflows and Deferred Inflows of Resources:

For the year ended June 30, 2016, the hospital recognized pension expense of
$1,929,533. At June 30, 2016, the hospital reported deferred outflows of
resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows Inflows
of of
Resources Resources
Differences Between Expected and
Actual Experience $ 275,312 $ (41,271)
Differences Between Projected and
Actual Earnings 4,394,731 (540,130)
Total $ 4,670,043 $ (581,401)
Amounts reported as deferred outflows of resources and deferred inflows of

resources related to pensions will be recognized in pension expense as follows:
Year Ending
June 30 Amount
2017 $ 1,080,425
2018 818,868
2019 1,102,694
2020 1,086,655
H. Other Retirement Plans
Effective May 1, 1997, the hospital implemented a defined contribution plan

which includes a 403(b) feature and an employer matching provision and
covers substantially all hourly and salaried employees. Voluntary
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contributions may be made by the participants as a percentage of annual
compensation not to exceed Internal Revenue Service limits. The hospitals
contribution in 2016 consisted of a matching contribution equal to
100 percent of the first three percent of annual compensation and an
additional matching contribution of 125 percent of the employees
contribution from four to five percent of annual compensation if the employee
had five or more years of service. The hospitals total contribution for the
year ended June 30, 2016, was approximately $4,080,000. Hospital
employees total contributions for the year ended June 30, 2016, were
approximately $6,500,000.
I. Leases
Capital Leases The hospital leases medical equipment under various

capital lease agreements with interest rates ranging from 2.4 percent to 4.5
percent. A summary of the leased equipment, which is included in property,
plant, and equipment, at June 30, 2016, is as follows:
Equipment Acquired Under Capital Leases $ 3,731,077

Less: Accumulated Depreciation (2,493,720)
Total $ 1,237,357
The following is a schedule of the future minimum lease payments required

under capital leases as of June 30, 2016:
Year Ending
June 30 Amount
2017 $ 763,801
2018 492,153
2019 57,866
2020 11,404
Total Minimum Lease Payments $ 1,325,224
Less: Amount Representing Interest (91,490)
Present Value of Minimum Lease Payments $ 1,233,734
Operating Leases The hospital also rents office space and equipment under
various non-cancelable operating lease agreements with varying terms. Rent
expense under operating lease agreements totaled approximately $4,560,000
for the year ended June 30, 2016.
Future minimum lease commitments for all significant non-cancelable

operating leases, excluding discretely presented component units, are as
follows:
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Year
Ending
June 30 Amount
2017 $ 2,256,087
2018 1,967,447
2019 1,981,021
2020 1,996,040
2021 1,736,665
2022-2026 7,707,324
2027-2031 3,514,549
2032-2036 969,444
Total $ 22,128,577
Leases with Physicians The hospital leases office space in its medical office
buildings to physicians under non-cancelable operating leases with varying
terms. Rental income under these lease agreements totaled approximately
$1,940,000 for the year ended June 30, 2016. Future minimum lease
commitments to the hospital for all significant non-cancelable operating
leases to physicians are as follows:
Year
Ending
June 30 Amount
2017 $ 1,280,317
2018 523,549
2019 377,065
2020 185,381
2021 154,118
Total $ 2,520,430
J. Leased Healthcare Facilities
Effective July 1, 2014, the hospital entered into a five-year lease under a
lease arrangement with Wayne County for the operation of several Wayne
County healthcare facilities, including the county hospital, ambulance
service, and medical office buildings. The lease also extends to all equipment,
improvements, fixtures, and related personal property. The annual lease
expense is $50,000 each year and an annual capital improvement
commitment of $150,000. The lease provides for two five-year renewal
options, which occur automatically unless the hospital provides notice of its
intent to terminate the lease at least 180 days in advance.
106
K. Commitments and Contingencies
General Liability Claims The hospital is exposed to various risks of loss

related to torts; theft of, damage to, and destruction of assets; errors and
omissions; injuries to employees; and natural disasters. The hospital
maintains commercial insurance coverage for each of those risks of loss.
Management believes such coverage is sufficient to preclude any significant
losses to the hospital.
Malpractice Liability Claims The hospital is subject to claims and suits

arising in the ordinary course of business from services provided to patients.
Losses against the hospital are limited by the Tennessee Governmental Tort
Liability Act to $300,000 for injury or death per person and $700,000 per
occurrence. However, claims against healthcare practitioners are not subject
to these limits. The hospital maintains professional liability insurance on a
claims made basis with limits of $1,000,000 per occurrence with a retention
of $250,000 per claim and a $3,000,000 annual aggregate with a $750,000
annual aggregate retention. The hospital has estimated and recorded a
liability for reported claims totaling approximately $960,000 at
June 30, 2016. In managements opinion, the hospital is currently not a party
to any proceeding, the ultimate resolution of which will have a material
adverse effect on the hospitals results of operations or financial condition.
The hospital has not estimated any liability for incurred but not reported
claims.
Workers Compensation Claims The hospital is covered for workers

compensation claims through an insurance policy with a per claim and policy
limit of $500,000. Management has recorded an accrual for the estimated
liability related to claims reported as of June 30, 2016. The hospital has not
estimated any liability for incurred but not reported claims.
Healthcare Benefits The hospital maintains a partially self-insured

healthcare plan to provide reimbursement for covered expenses incurred as a
result of illness or injury to covered employees and dependents. Stop-loss
insurance is purchased for annual claims per individual exceeding $300,000
with an additional aggregating specific amount of $100,000. The hospital has
estimated and recorded a liability for healthcare claims incurred but not yet
reported totaling approximately $3,060,000 at June 30, 2016. Prior to July 1,
2015, employees that retired after attaining age 60 and completing 20 years
of service received continued coverage under the hospitals health benefit
program until they attain age 65 or become eligible for Medicare benefits.
The hospitals policy for healthcare benefits for retired employees was
amended effective July 1, 2015, to eliminate future accruals and payments of
healthcare benefits for employees not yet retired as of June 30, 2015. The
estimated amount of retirement health benefits payable totaled
approximately $855,000 at June 30, 2016, and is reported as a noncurrent
liability in the combined financial statements. Due to uncertainties in the
estimate, it is at least reasonably possible that managements estimate could
change in 2017.
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Healthcare Industry The healthcare industry is subject to numerous laws
and regulations of federal, state, and local governments. These laws and
regulations include, but are not necessarily limited to, matters such as
licensure, accreditation, government healthcare program participation
requirements, reimbursement for patient services, Medicare fraud and abuse
and under the provisions of the Health Insurance Portability and
Accountability Act of 1996, patient records privacy and security. Recently,
government activity has increased with respect to investigations and
allegations concerning possible violations of fraud and abuse statutes and
regulations by healthcare providers, such as the Medicare Recovery Audit
Contractor Program. Violations of these laws and regulations could result in
expulsion from government healthcare programs together with the imposition
of significant fines and penalties, as well as significant repayments for
patient services previously billed. Compliance with such laws and
regulations can be subject to future government review and interpretation as
well as regulatory actions unknown or unasserted at this time. Management
believes that any amounts payable related to audits through the Medicare
Recovery Audit Contractor program, or similar initiatives, have been
estimated and recorded as Other Long-term Liabilities in the combined
financial statements; and therefore, any additional impact on the combined
financial statements will not be significant. However, due to the
uncertainties involved, managements estimate could change in the near
future.
Healthcare Reform In March 2010, Congress adopted comprehensive

healthcare insurance legislation, the Patient Care Protection and Affordable
Care Act and the Healthcare and Education Reconciliation Act. The
legislation, among other matters, is designed to expand access to healthcare
coverage to substantially all citizens through a combination of public
program expansion and private industry health insurance. Changes to
existing TennCare coverage and payments are also expected to occur as a
result of this legislation. Implementing regulations are generally required as
a result of such legislation over a period of several years. Accordingly, the
impact of any future regulations is not determinable.
L. Fair Value of Financial Instruments
Management estimates that the carrying value of its financial instruments,

including cash and cash equivalents, investments, patient accounts and other
receivables, accounts payable and accrued expenses, and estimated liability
for refunds are at fair value or approximate fair value due to the nature and
short-term maturities of these instruments. Management estimates that the
fair value of its capital lease obligations and long-term debt was
approximately $39,800,000 as of June 30, 2016.
M. Fair Value Measurement
GASB Statement No. 72 emphasizes that fair value is a market-based

measurement, not an entity-specific measurement. Therefore, a fair value
108
measurement should be determined based on the assumptions that market
participants would use in pricing the asset or liability. As such, GASB
defines fair value as the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants
at the measurement date. GASB defines fair value as an exit price where
measurement assumes a transaction takes place in an entitys principal
market, or most advantageous market in the absence of a principal market,
and the market participants are acting in their economic best interests.
GASB Statement No. 72 requires an entity to use valuation techniques that
are appropriate under the circumstances and for which sufficient data are
available to measure fair value. Valuation techniques should be applied
consistently and maximize the use of relevant observable inputs and
minimize the use of unobservable inputs.
Valuation Hierarchy: GASB Statement No. 72 establishes a hierarchy of

inputs to valuation techniques used to measure fair value. The hierarchy has
three levels which are defined as follows:
Level 1: Inputs to the valuation technique are quoted prices

(unadjusted) for identical assets or liabilities in active markets.
Level 2: Inputs to the valuation technique, other than quoted prices

within Level 1, that are observable for an asset or liability, either
directly or indirectly.
Level 3: Inputs to the valuation technique are unobservable.
In instances where the determination of the fair value hierarchy

measurement is based on inputs from different levels of the fair value
hierarchy, the level in the fair value hierarchy within which the entire fair
value measurement falls is based on the lowest level input that is significant
to the fair value measurement in its entirety. The hospitals assessment of
the significance of a particular input to the fair value measurement in its
entirety requires judgment and considers factors specific to the asset or
liability.
The following table presents assets reported at fair value as of June 30, 2016,
and their respective classification under the GASB Statement No. 72
valuation hierarchy:
109
Assets Measured at Fair Value on a Recurring Basis as of June 30, 2016
Significant
Quoted Prices Other Significant
in Observable Unobservable
Carrying Active Markets Inputs Inputs
Value (Level 1) (Level 2) (Level 3)
Investments in Mutual Funds -

Fixed Income $ 12,042,238 $ 12,042,238 $ 0 $ 0
Investments in Mutual Funds -
Equity 19,315,571 19,315,571 0 0
Investments in Governmental
Agency Bonds 7,095,511 0 7,095,511 0
Investments in Corporate and
Municipal Bonds 9,662,251 0 9,662,251 0
The fair value of investments in U.S. government agency bonds, municipal

bonds and corporate bonds is estimated based on matrix pricing of similar
assets or market corroborated pricing.
N. Other Revenue
The American Recovery and Reinvestment Act of 2009 and the Health
Information Technology for Economic and Clinical Health (HITECH) Act
established incentive payments under the Medicare and Medicaid programs
for certain healthcare providers that use certified Electronic Health Record
(EHR) technology. To qualify for incentive payments, healthcare providers
must meet designated EHR meaningful use criteria as defined. Compliance
with meaningful use criteria is subject to audit by the federal government or
its designee and incentive payments are subject to adjustment in a future
period. The hospital recognizes revenue for EHR incentive payments when
substantially all contingencies have been met. The hospital recognized
approximately $200,000 of other revenue related to EHR incentive payments
in 2016.
O. Blended Component Unit Information
Condensed financial information of the hospitals blended component units is

as follows:
110
Surgery
Hospital FHG Center Foundation
Assets
Current Assets $ 93,463,333 $ 3,996,835 $ 437,015 $ 1,721,102
Due (to)
from Affiliates 1,536,843 640 (1,029,045) 0
Property, Plant,
and Equipment 109,748,493 1,703,577 4,188,846 0
Other Assets 78,899,477 266,338 360,608 0
Total Assets $ 283,648,146 $ 5,967,390 $ 3,957,424 $ 1,721,102

Deferred Outflows of Resources
Deferred Pension
Adjustments $ 4670043 $ 0 $ 0 $ 0
Deferred Amounts from
Debt Refunding 183709 0 0 0
Combined Assets and Deferred

Outflows of Resources $ 288,501,898 $ 5,967,390 $ 3,957,424 $ 1,721,102
Liabilities
Current liabilities $ 25,198,860 $ 4,203,097 $ 2,254,128 $ 0
Long-term debt 30,799,160 0 0 0
Other liabilities 17,460,095 0 0 0
Total Liabilities $ 73,458,115 $ 4,203,097 $ 2,254,128 $ 0
Deferred Inflows of Resources

Deferred Pension
Adjustments $ 581,401 $ 0 $ 0 $ 0
Combined Liabilities and Deferred

Inflows of Resources $ 74,039,516 $ 4,203,097 $ 2,254,128 $ 0
Net Position
Net investment
in capital assets $ 86,806,171 $ 1,703,577 $ 4,188,846 $ -
Unrestricted 127,656,211 60,716 (2,485,550) 1,721,102
$ 214,462,382 $ 1,764,293 $ 1,703,296 $ 1,721,102
Total Net Position $ 288,501,898 $ 5,967,390 $ 3,957,424 $ 1,721,102
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Statements of Revenues, Expenses, and Changes in Net Position
Surgery
Operating Revenue
Net Patient Service
Revenue $ 284,442,188 $ 35,991,494 $ 1,563,997 $ 0
Other Operating
Revenue 14,744,999 4,494,706 0 0
Total Operating
Revenue $ 299,187,187 $ 40,486,200 $ 1,563,997 $ 0
Operating Expenses (260,780,235) (47,519,360) (2,140,348) (607,529)
Depreciation and
Amortization (15,794,664) (1,033,097) (430,956) 0
Income (Loss) $ 22,612,288 $ (8,066,257) $ (1,007,307) $ (607,529)
Nonoperating Revenue
(Expenses) 2,921,603 (108,991) 0 1,002,592
Equity in Affiliate Losses (9,517,090) 0 0 0
Interest Expense (890,345) (1,705) (103,477) 0
Excess of Revenue
Over Expenses $ 15,126,456 $ (8,176,953) $ (1,110,784) $ 395,063
Capital Contributions
and Transfers 0 9,336,888 0 0
Change in Net
Position $ 15,126,456 $ 1,159,935 $ (1,110,784) $ 395,063
Net Position, 7-1-15 199,335,926 604,358 2,814,080 1,326,039
Net Position, 6-30-16 $ 214,462,382 $ 1,764,293 $ 1,703,296 $ 1,721,102
Statements of Cash Flows

Surgery
Cash Flows from
Operating Activities $ 19,489,287 $ 668,512 $ 4,282,361 $ (1,003,303)
Cash Flows from
Noncapital Financing
Activities 1,429,608 0 0 987,979
Cash Flows from
Capital and Related
Financing Activities (16,532,581) (62,683) (4,316,786) 0
Cash Flows from
Investing Activities 6,101,026 0 0 14,613
Increase in Cash and
Cash Equivalents $ 10,487,340 $ 605,829 $ (34,425) $ (711)
Cash and Cash
Equivalents, 7-1-15 38,557,940 (869,660) 196,104 16,319
Cash and Cash

Equivalents, 6-30-16 $ 49,045,280 $ (263,831) $ 161,679 $ 15,608
112
VII. OTHER NOTES DISCRETELY PRESENTED MAURY COUNTY BOARD OF
PUBLIC UTILITIES WATER SYSTEM
A. Summary of Significant Accounting Policies
1. General
The Maury County Board of Public Utilities Water System is a

discrete component unit of Maury County, Tennessee. The system is
governed by a board of directors appointed by the county mayor and
ratified by commissioners of Maury County. In addition, the Maury
County Commissioners approve the annual budget of the system. The
system is operated as an enterprise fund with self-balancing
accounting records. The system does not receive any operating
revenues from Maury County.
2. Basis of Accounting
The systems financial statements have been presented using the

economic resources approach and the accrual basis of accounting,
except that revenue from water sales is recognized when billed.
3. Change in Percentage used for Pension Accounting (Change in

Estimate)
The system is included in the Tennessee Consolidated Retirement

System as part of the Maury Count Courthouse. The system is
calculated as a percentage of the total Maury County Courthouse.
The percentage is provided by the auditors of the state of Tennessee.
The percentage was .5767 percent for the year ended June 30, 2016,
which was a change in estimate from 1.24 percent for the year ended
June 30, 2015. The change in accounting estimate is reported as an
expense in the current year financial statements.
4. Utility Plant, Property and Equipment
The utility plant, property and equipment are recorded at cost.

Depreciation is provided on the straight-line method over the
estimated useful lives of the respective assets. Items costing over $500
are depreciated. Maintenance and repairs are charged to expense as
incurred; major renewals and improvements are capitalized. When
items of property or equipment are sold or retired, the related costs
and accumulated depreciation are removed from the accounts, and any
gain or loss is included in income. Depreciation expense for the year
ended June 30, 2016, was $741,016.
113
5. Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the system considers all
investment instruments purchased with an original maturity of three
months or less to be cash equivalents. There were no cash equivalents
at June 30, 2016. Restricted assets are not treated as part of the
systems cash and cash equivalents.
6. Classification of Revenue
The system has classified its revenues as either operating or

nonoperating revenues according to the following criteria:
Operating revenues Operating revenues generally result from

providing water for use or providing related support services to an
individual or entity separate from the system.
Nonoperating revenues Nonoperating revenues are those revenues

that do not meet the definition of operating revenues. Nonoperating
revenues include gifts, investment income, and insurance
reimbursements.
7. Use of Estimates
The preparation of financial statements in conformity with generally

accepted accounting principles requires management to make
estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those
estimates.
8. Inventory
The systems inventory of supplies is stated at cost using the first-in,

first-out method. The costs of inventory items are recognized as
expenses in the enterprise fund when used.
9. Restricted Resources
When an expense is incurred for purposes for which both restricted

and unrestricted assets are available, it is the systems policy to first
apply restricted resources.
B. Accounts Receivable
Customer receivables are composed of the following aged categories:
114
Amount
Current Billings $ 254,528

30 Days Past Due 3,414
60 Days Past Due 529
90 Days Past Due 671
Total $ 259,142
Bad debts are determined and written-off only by direct action of the systems
board. For the year ended June 30, 2016, $2,584 was written-off.
C. Deposits and Investments
Deposits
The system is subject to the Tennessee statute, which requires deposits in

financial institutions be secured and collateralized by such institutions. The
collateral must meet certain requirements and must have a total market
value of 105 percent of the value of the deposits placed in the institutions,
less the amount protected by federal depository insurance. Collateral
requirements are not applicable for financial institutions that participate in
the State of Tennessees collateral pool.
Custodial credit risk is the risk that in the event of a bank failure, the
systems deposits may not be returned to it. As of June 30, 2016, all deposits
were insured or collateralized.
Investments consist of certificates of deposit with financial institutions with

original maturities of over three months and not over one year. The systems
policy is to hold these investments to maturity; therefore, there is no interest
rate risk that will adversely affect the fair value of the investments.
D. Restricted Assets
The restricted assets represent investment of customer deposits. The

customer deposits are not available for operation of the system and are held
in trust. The deposits at June 30, 2016, included $33,850 for meter deposits
of current customers.
E. Utility Plant, Property, and Equipment
Major classifications of the utility plant, property, and equipment and their
respective depreciable lives are summarized below:
115
Assets Years
Water Grid and Improvements 50 - 100

Water Mains 40
Water Towers and Stations 40
Water Meters 10 - 40
Casting and Valves 20 - 50
Other 40
Trucks 5
Small Tools and Equipment 3 - 10
Office Furniture and Equipment 5 - 10
F. Capital Assets
Capital assets activity for the year ended June 30, 2016, was as follows:
Balance Balance
7-1-15 Additions Retirements 6-30-16
Capital Assets Not

Depreciated:
Land $ 437,552 $ 0 $ 0 $ 437,552
Construction in Progress 23,170 39,433 (23,170) 39,433
Not Depreciated $ 460,722 $ 39,433 $ (23,170) $ 476,985
Capital Assets
Depreciated:
Building $ 1,988,736 $ 0 $ 0 $ 1,988,736
Water Grid and Improvements 29,993,920 183,859 0 30,177,779
Equipment and Fixtures 1,058,226 110,318 0 1,168,544
Depreciated $ 33,040,882 $ 294,177 $ 0 $ 33,335,059
Less Accumulated
Depreciation For:
Building $ 144,744 $ 51,138 $ 0 $ 195,882
Water Grid and Improvements 7,690,974 604,186 0 8,295,160
Equipment and Fixtures 747,037 85,692 0 832,729
Total Accumulated
Depreciation $ 8,582,755 $ 741,016 $ 0 $ 9,323,771

Depreciated, Net $ 24,458,127 $ (446,839) $ 0 $ 24,011,288
Business-type Activities
Capital Assets, Net $ 24,918,849 $ (407,406) $ (23,170) $ 24,488,273
116
G. Accrued Leave
Accumulated annual leave at June 30, 2016, totaled $22,231. It is the

systems policy to accrue vacation annually for full-time personnel and charge
employee benefits. The policy provides two weeks annual leave for personnel
with one to five years continuous service, three weeks for six to 11 years of
service, and increasing amounts up to five weeks for service up to 25 years.
H. Risk Management
The system is exposed to losses that could arise from torts; asset theft,
damage, or destruction; business interruption; errors or omissions;
job-related illnesses or injuries to employees; acts of nature; accident, health,
dental, and other medical benefits to employees. Potential losses are covered
by commercial insurance.
The system has not been involved in any significant litigation during the last
five fiscal years.
I. Long-term Debt
The systems bonds payable are liabilities derived from various system water
line upgrades, extensions, and improvements.
Bonds payable consist of the following at June 30, 2016:
Bonds Payable
Series 2006, State Revolving Loan Fund: DWSRF 2005-065: The principal
will be amortized over 20 years with monthly payments of $21,623 and
an interest rate of 2.42%. $ 2,553,145
Series 2008, State Revolving Loan Fund: DWSRF 2007-072: The principal
will be amortized over 20 years with monthly payments of $8,679 and
an interest rate of 2.42%. 1,096,728
Series 2006, USDA Rural Development Loan: The principal will be

amortized over 38 years with monthly payments of $12,615 and an
interest rate of 4.125%. 2,603,533
Total Bonds Payable $ 6,253,406
Less current portion (323,237)

Total Long-term Bonds Payable $ 5,930,169
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Business-type Activities - Bonds Payable
Balance Balance Due Within

7-1-15 Reductions 6-30-16 One Year
$ 6,568,134 $ (314,728) $ 6,253,406 $ 323,237
The principal and interest requirements for outstanding bonds as of

June 30, 2016, are as follows:
Year Ending
2017 $ 323,237 $ 191,768 $ 515,005

2018 331,977 183,067 515,044
2019 340,875 174,130 515,005
2020 350,062 164,942 515,004
2021 359,528 155,476 515,004
2022-2026 1,949,184 625,838 2,575,022
2027-2031 907,003 399,924 1,306,927
2032-2036 452,426 304,474 756,900
2037-2041 555,843 201,057 756,900
2042-2046 683,271 73,999 757,270
Total $ 6,253,406 $ 2,474,675 $ 8,728,081
J. Pension
The system participates in the Tennessee Consolidated Retirement System,

under the Maury County, Tennessee plan. Benefits are determined by a
formula using the members high five-year average salary and years of
service. Members become eligible to retire at the age of 60 with five years of
service or at any age with 30 years of service.
Employees contribute five percent of earnable compensation to the plan. The

system is required to contribute at an actuarially determined rate; the rate of
the fiscal year ended June 30, 2016, was 4.62 percent of annual covered
payroll.
K. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows

of Resources and Deferred Inflows of Resources
At June 30, 2016, the system reported a pension asset of $16,474 for its
proportionate share of the net pension asset. The net pension asset was
measured at June 30, 2016, and the total pension liability used to calculate
the net pension liability was determined by an actuarial value as of that date.
118
The systems proportion of the net pension asset was based on the systems
share of contributions to the pension plan relative to the contributions of all
participants. At the measurement date of June 30, 2016, the systems
proportion was .5767 percent. The proportion measured as of June 30, 2015
was 1.24 percent.
Deferred Outflows of Resources and Deferred Inflows of Resources. For the

year ended June 30, 2016, the system reported deferred outflows of resources
and deferred inflows of resources related to pensions from the following
sources:
Deferred Deferred
Outflows Inflows
of of
Resources Resources
Differences Between Expected and
Actual Experience $ 1,962 $ 1,988
Investments 12,187 15,958
Contributions subsequent to the
measurement date of June 30, 2015 26,664 0
Total $ 40,813 $ 17,946
L. Subsequent Events
Subsequent events have been evaluated through the date the financial
statements were available to be issued.
119
REQUIRED SUPPLEMENTARY
INFORMATION
120
Exhibit F-1

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios Based on
Participation in the Public Employee Pension Plan of TCRS
Primary Government
For the Fiscal Year Ended June 30
2014 2015
Total Pension Liability (Asset)

Service Cost $ 2,144,201 $ 2,089,934
Interest 3,882,590 4,154,887
Changes in Benefit Terms 0 0
Differences Between Actual and Expected Experience (517,136) 408,227
Changes in Assumptions 0 0
Benefit Payments, Including Refunds of Employee Contributions (1,773,430) (1,876,071)
Net Change in Total Pension Liability (Asset) $ 3,736,225 $ 4,776,977
Total Pension Liability (Asset), Beginning 50,510,376 54,246,601
Total Pension Liability (Asset), Ending (a) $ 54,246,601 $ 59,023,578
Plan Fiduciary Net Position

Contributions - Employer $ 1,619,633 $ 1,188,886
Contributions - Employee 1,251,509 1,288,204
Net Investment Income 8,403,420 1,840,671
Benefit Payments, Including Refunds of Employee Contributions (1,773,430) (1,876,071)
Administrative Expense (34,737) (46,288)
Net Change in Plan Fiduciary Net Position $ 9,466,395 $ 2,395,402
Plan Fiduciary Net Position, Beginning 50,018,686 59,485,081
Plan Fiduciary Net Position, Ending (b) $ 59,485,081 $ 61,880,483
Net Pension Liability (Asset), Ending (a - b) $ (5,238,480) $ (2,856,905)
Plan Fiduciary Net Position as a Percentage of Total Pension Liability 109.66% 104.84%
Covered Payroll $ 25,033,043 $ 25,736,255
Net Pension Liability (Asset) as a Percentage of Covered Payroll (20.93)% (11.1)%
Note: ten years of data will be presented when available.
Note: data presented is primary government, non-certified

employees of the discretely presented School Department, and
the discretely presented Maury County Water System.
121
Exhibit F-2
Schedule of Contributions Based on Participation in the Public
Employee Pension Plan of TCRS
Primary Government
2014 2015 2016
Actuarially Determined Contribution $ 1,619,633 $ 1,188,886 $ 1,222,003

Less Contributions in Relation to the
Actuarially Determined Contribution (1,619,633) (1,188,886) (1,222,003)
Contribution Deficiency (Excess) $ 0 $ 0 $ 0
Covered Payroll $ 25,033,043 $ 25,736,255 $ 26,482,456
Contributions as a Percentage of Covered Payroll 6.47% 4.62% 4.62%
Note: data presented is primary government, non-certified

employees of the discretely presented School Department, and
the discretely presented Maury County Water System.
122
Exhibit F-3
Retirement Plan of TCRS
2015 2016
Contractually Required Contribution $ 56,634 $ 110,424

Contractually Required Contribution (90,615) (181,813)
Contribution Deficiency (Excess) $ (33,981) $ (71,389)
Covered Payroll $ 2,265,347 $ 4,416,955
Contributions as a Percentage of Covered Payroll 4.00% 4.00%
123
Exhibit F-4
Legacy Pension Plan of TCRS
2014 2015 2016
Contractually Required Contribution $ 4,049,189 $ 3,965,792 $ 3,827,082

Contractually Required Contribution (4,049,189) (3,965,792) (3,827,082)
Contribution Deficiency (Excess) $ 0 $ 0 $ 0
Covered Payroll $ 45,598,973 $ 43,870,096 $ 42,389,134
Contributions as a Percentage of Covered Payroll 8.88% 9.04% 9.04%
124
Exhibit F-5
Schedule of Proportionate Share of the Net Pension Liability (Asset)
in the Teacher Retirement Pension Plan of TCRS
For the Fiscal Year Ended June 30 *
2016
School Department's Proportion of the Net Pension Liability (Asset) 1.090316%
School Department's Proportionate Share of the Net

Pension Liability (Asset) $ (43,863)
Covered Payroll $ 2,265,347
School Department's Proportionate Share of the Net Pension

Liability (Asset) as a Percentage of its Covered Payroll (1.94)%
Plan Fiduciary Net Position as a Percentage of the Total

Pension Liability 127.46%
* The amounts presented were determined as of June 30 of the prior fiscal year.
125
Exhibit F-6

Schedule of Proportionate Share of the Net Pension Liability (Asset)
in the Teacher Legacy Pension Plan of TCRS
For the Fiscal Year Ended June 30 *
2015 2016
School Department's Proportion of the Net Pension Asset 1.161760% 1.171881%
School Department's Proportionate Share of the Net

Pension Liability (Asset) $ (188,781) $ 480,042
Covered Payroll $ 45,598,978 $ 43,870,096
School Department's Proportionate Share of the Net Pension

Liability (Asset) as a Percentage of its Covered Payroll (.41)% 1.09%
Plan Fiduciary Net Position as a Percentage of the Total

Pension Liability 100.08% 99.81%
* The amounts presented were determined as of June 30 of the prior fiscal year.
126
Exhibit F-7
Schedule of Funding Progress Other Postemployment Benefits Plan
June 30, 2016
(Dollar amounts in thousands)
Actuarial
Accrued
Liability
Actuarial (AAL) UAAL as a
Value of Projected Unfunded Percentage
Actuarial Plan Unit AAL Funded Covered of Covered
Valuation Assets Credit (UAAL) Ratio Payroll Payroll
Plan Date (a) (b) (b)-(a) (a/b) (c) ((b-a)/c)
Local Education Group 7-1-11 $ 0 $ 26,079 $ 26,079 0 % $ 53,884 48 %

" 7-1-13 0 25,085 25,085 0 55,903 45
" 7-1-15 0 28,831 28,831 0 56,459 51
127
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
TENNESSEE CONSOLIDATED RETIREMENT SYSTEM
Valuation Date: Actuarially determined contribution rates for 2016 were calculated based
on the July 1, 2013, actuarial valuation.
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Frozen Initial Liability

Amortization Method Level Dollar, Closed (Not to Exceed 20 Years)
Remaining Amortization
Period 1 Year
Asset Valuation 10-Year Smoothed Within a 20%
Corridor to Market Value
Inflation 3%
Salary Increases Graded Salary Ranges from 8.97% to
3.71% Based on Age, Including Inflation
Investment Rate of Return 7.5%, Net of Investment Expense,
Including Inflation
Retirement Age Pattern of Retirement Determined by
Experience Study
Mortality Customized Table Based on Actual
Experience Including an Adjustment for
Some Anticipated Improvement
128
COMBINING AND INDIVIDUAL FUND
FINANCIAL STATEMENTS AND SCHEDULES
129
Nonmajor Governmental Funds
Special Revenue Funds
___________________________________
Special Revenue Funds are used to account for and report the proceeds
of specific revenue sources that are restricted or committed to
expenditure for specified purposes other than debt service or capital
projects.
___________________________________
Drug Control Fund The Drug Control Fund is used to account for revenues
received from drug-related fines, forfeitures, and seizures.
Adequate Facilities/Development Tax Fund The Adequate Facilities/Development

Tax Fund is used to account for the fee assessed on square footage on all new
residential and commercial buildings.
Constitutional Officers - Fees Fund The Constitutional Officers - Fees Fund is

used to account for operating expenses paid directly from the fee and commission
accounts of the trustee, clerks, register of deeds, and sheriff.
Highway/Public Works Fund The Highway/Public Works Fund is used to account

for transactions of the countys Highway Department.
130
Capital Projects Funds
__________________________________
Capital Projects Funds are used to account for and report financial
resources that are restricted, committed, or assigned to expenditure for
capital outlays, including the acquisition or construction of capital
facilities and other capital assets.
__________________________________
General Capital Projects Fund The General Capital Projects Fund is used to
account for general capital expenditures of the county.
Highway Capital Projects Fund The Highway Capital Projects Fund is used to
account for general capital expenditures of the Highway Department.
Other Capital Projects Fund The Other Capital Projects Fund is used to account
for other general capital expenditures of the county.
131
Exhibit G-1

Combining Balance Sheet
June 30, 2016
Capital
Projects
Special Revenue Funds Funds
Adequate Constitu -
Facilities/ tional Highway / General
Drug Development Officers - Public Capital
Control Tax Fees Works Total Projects
ASSETS
Cash $ 0 $ 0 $ 64,925 $ 0 $ 64,925 $ 0

Equity in Pooled Cash and Investments 1,430,733 2,869,840 0 2,079,408 6,379,981 450,008
Accounts Receivable 1,663 0 49,937 27,914 79,514 0
Due from Other Governments 423 0 0 565,840 566,263 0
Property Taxes Receivable 0 0 0 2,802,623 2,802,623 0
Allowance for Uncollectible Property Taxes 0 0 0 (68,251) (68,251) 0
Total Assets $ 1,432,819 $ 2,869,840 $ 114,862 $ 5,407,534 $ 9,825,055 $ 450,008
LIABILITIES
Accounts Payable $ 9,264 $ 21 $ 0 $ 266,014 $ 275,299 $ 0

Payroll Deductions Payable 0 0 0 40,958 40,958 0
Contracts Payable 0 0 0 257,929 257,929 0
Due to State of Tennessee 0 0 0 420 420 0
Due to Litigants, Heirs, and Others 0 0 372 0 372 0
Other Current Liabilities 1,098,050 0 0 0 1,098,050 0
Total Liabilities $ 1,107,314 $ 21 $ 372 $ 565,321 $ 1,673,028 $ 0
Deferred Current Property Taxes $ 0 $ 0 $ 0 $ 2,663,890 $ 2,663,890 $ 0

Deferred Delinquent Property Taxes 0 0 0 58,490 58,490 0
Other Deferred/Unavailable Revenue 0 0 0 256,351 256,351 0
Total Deferred Inflows of Resources $ 0 $ 0 $ 0 $ 2,978,731 $ 2,978,731 $ 0
(Continued)
132
Exhibit G-1

Nonmajor Governmental Funds (Cont.)
Capital
Projects
Adequate Constitu -
FUND BALANCES
Restricted:
Restricted for General Government $ 0 $ 2,345,525 $ 0 $ 0 $ 2,345,525 $ 0
Restricted for Public Safety 325,505 0 0 0 325,505 0
Restricted for Highways/Public Works 0 0 0 1,863,482 1,863,482 0
Restricted for Capital Outlay 0 0 0 0 0 450,008
Committed:
Committed for General Government 0 7,577 114,490 0 122,067 0
Committed for Public Safety 0 353,978 0 0 353,978 0
Committed for Social, Cultural, and Recreational Services 0 162,739 0 0 162,739 0
Total Fund Balances $ 325,505 $ 2,869,819 $ 114,490 $ 1,863,482 $ 5,173,296 $ 450,008
Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 1,432,819 $ 2,869,840 $ 114,862 $ 5,407,534 $ 9,825,055 $ 450,008
(Continued)
133
Exhibit G-1

Capital Projects Funds (Cont.) Total

Highway Other Nonmajor
Capital Capital Governmental
Projects Projects Total Funds
ASSETS
Cash $ 0 $ 0 $ 0 $ 64,925
Equity in Pooled Cash and Investments 346,363 663,161 1,459,532 7,839,513
Accounts Receivable 0 726 726 80,240
Due from Other Governments 90,927 0 90,927 657,190
Property Taxes Receivable 0 1,322,378 1,322,378 4,125,001
Allowance for Uncollectible Property Taxes 0 (28,060) (28,060) (96,311)
Total Assets $ 437,290 $ 1,958,205 $ 2,845,503 $ 12,670,558
LIABILITIES
Accounts Payable $ 0 $ 0 $ 0 $ 275,299

Payroll Deductions Payable 0 0 0 40,958
Contracts Payable 0 0 0 257,929
Due to State of Tennessee 0 0 0 420
Due to Litigants, Heirs, and Others 0 0 0 372
Other Current Liabilities 0 0 0 1,098,050
Total Liabilities $ 0 $ 0 $ 0 $ 1,673,028
Deferred Current Property Taxes $ 0 $ 1,269,636 $ 1,269,636 $ 3,933,526

Deferred Delinquent Property Taxes 0 20,483 20,483 78,973
Other Deferred/Unavailable Revenue 0 0 0 256,351
Total Deferred Inflows of Resources $ 0 $ 1,290,119 $ 1,290,119 $ 4,268,850
(Continued)
134
Exhibit G-1


FUND BALANCES
Restricted:
Restricted for General Government $ 0 $ 0 $ 0 $ 2,345,525
Restricted for Public Safety 0 0 0 325,505
Restricted for Highways/Public Works 437,290 0 437,290 2,300,772
Restricted for Capital Outlay 0 668,086 1,118,094 1,118,094
Committed:
Committed for General Government 0 0 0 122,067
Committed for Public Safety 0 0 0 353,978
Committed for Social, Cultural, and Recreational Services 0 0 0 162,739
Total Fund Balances $ 437,290 $ 668,086 $ 1,555,384 $ 6,728,680
Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 437,290 $ 1,958,205 $ 2,845,503 $ 12,670,558
135
Exhibit G-2

Combining Statement of Revenues, Expenditures,
Capital
Projects
Adequate Constitu -
Revenues
Local Taxes $ 0 $ 1,304,760 $ 0 $ 2,989,734 $ 4,294,494 $ 0
Fines, Forfeitures, and Penalties 99,304 0 0 0 99,304 0
Charges for Current Services 0 0 62,208 0 62,208 0
Other Local Revenues 0 0 0 75,279 75,279 0
State of Tennessee 0 0 0 3,121,248 3,121,248 0
Federal Government 8,331 0 0 0 8,331 0
Other Governments and Citizens Groups 1,416 0 0 28,997 30,413 0
Total Revenues $ 109,051 $ 1,304,760 $ 62,208 $ 6,215,258 $ 7,691,277 $ 0
Expenditures
Current:
Finance $ 0 $ 0 $ 5,441 $ 0 $ 5,441 $ 0
Administration of Justice 0 0 4,680 0 4,680 0
Public Safety 128,133 0 0 0 128,133 0
Social, Cultural, and Recreational Services 0 0 0 0 0 0
Other Operations 0 0 0 0 0 0
Highways 0 0 0 5,583,018 5,583,018 0
Capital Projects 0 242,050 0 2,008,403 2,250,453 402,362
Capital Projects - Donated 0 0 0 0 0 0
Total Expenditures $ 128,133 $ 242,050 $ 10,121 $ 7,591,421 $ 7,971,725 $ 402,362

Over Expenditures $ (19,082) $ 1,062,710 $ 52,087 $ (1,376,163) $ (280,448) $ (402,362)
(Continued)
136
Exhibit G-2

Capital
Projects
Adequate Constitu -

Notes Issued $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Insurance Recovery 0 0 0 0 0 0
Transfers In 0 0 0 0 0 0
Total Other Financing Sources (Uses) $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Net Change in Fund Balances $ (19,082) $ 1,062,710 $ 52,087 $ (1,376,163) $ (280,448) $ (402,362)
Fund Balance, July 1, 2015 344,587 1,807,109 62,403 3,239,645 5,453,744 852,370
Fund Balance, June 30, 2016 $ 325,505 $ 2,869,819 $ 114,490 $ 1,863,482 $ 5,173,296 $ 450,008
(Continued)
137
Exhibit G-2


Revenues
Local Taxes $ 1,032,288 $ 1,002,420 $ 2,034,708 $ 6,329,202
Fines, Forfeitures, and Penalties 0 0 0 99,304
Charges for Current Services 0 0 0 62,208
Other Local Revenues 0 17,045 17,045 92,324
State of Tennessee 0 0 0 3,121,248
Federal Government 0 0 0 8,331
Other Governments and Citizens Groups 0 0 0 30,413
Total Revenues $ 1,032,288 $ 1,019,465 $ 2,051,753 $ 9,743,030
Expenditures
Current:
Finance $ 0 $ 0 $ 0 $ 5,441
Administration of Justice 0 0 0 4,680
Public Safety 0 274,400 274,400 402,533
Social, Cultural, and Recreational Services 0 14,731 14,731 14,731
Other Operations 10,317 20,861 31,178 31,178
Highways 0 0 0 5,583,018
Capital Projects 1,295,938 106,950 1,805,250 4,055,703
Capital Projects - Donated 0 1,081,213 1,081,213 1,081,213

Over Expenditures $ (273,967) $ (478,690) $ (1,155,019) $ (1,435,467)
(Continued)
138
Exhibit G-2



Notes Issued $ 0 $ 355,993 $ 355,993 $ 355,993
Insurance Recovery 0 12,396 12,396 12,396
Transfers In 67,564 0 67,564 67,564
Total Other Financing Sources (Uses) $ 67,564 $ 368,389 $ 435,953 $ 435,953
Net Change in Fund Balances $ (206,403) $ (110,301) $ (719,066) $ (999,514)

Fund Balance, July 1, 2015 643,693 778,387 2,274,450 7,728,194
Fund Balance, June 30, 2016 $ 437,290 $ 668,086 $ 1,555,384 $ 6,728,680
139
Exhibit G-3
Schedule of Revenues, Expenditures, and Changes
Drug Control Fund
Actual Variance
Actual Add: Expenditures Budget -
(GAAP Encumbrances (Budgetary Budgeted Amounts Positive
Basis) 6/30/2016 Basis) Original Final (Negative)
Revenues
Fines, Forfeitures, and Penalties $ 99,304 $ 0 $ 99,304 $ 134,000 $ 134,000 $ (34,696)
Federal Government 8,331 0 8,331 21,000 21,000 (12,669)
Other Governments and Citizens Groups 1,416 0 1,416 0 0 1,416
Total Revenues $ 109,051 $ 0 $ 109,051 $ 155,000 $ 155,000 $ (45,949)
Expenditures
Public Safety
Drug Enforcement $ 128,133 $ 2,508 $ 130,641 $ 154,645 $ 156,054 $ 25,413
Total Expenditures $ 128,133 $ 2,508 $ 130,641 $ 154,645 $ 156,054 $ 25,413

Over Expenditures $ (19,082) $ (2,508) $ (21,590) $ 355 $ (1,054) $ (20,536)

Insurance Recovery $ 0 $ 0 $ 0 $ 0 $ 1,409 $ (1,409)
Total Other Financing Sources $ 0 $ 0 $ 0 $ 0 $ 1,409 $ (1,409)
Net Change in Fund Balance $ (19,082) $ (2,508) $ (21,590) $ 355 $ 355 $ (21,945)
Fund Balance, July 1, 2015 344,587 0 344,587 344,587 344,587 0
Fund Balance, June 30, 2016 $ 325,505 $ (2,508) $ 322,997 $ 344,942 $ 344,942 $ (21,945)
140
Exhibit G-4

Adequate Facilities/ Development Tax Fund
Actual Variance
Revenues
Local Taxes $ 1,304,760 $ 0 $ 0 $ 1,304,760 $ 900,000 $ 900,000 $ 404,760
Total Revenues $ 1,304,760 $ 0 $ 0 $ 1,304,760 $ 900,000 $ 900,000 $ 404,760
Expenditures
Capital Projects
General Administration Projects $ 195,999 $ (120,772) $ 33,531 $ 108,758 $ 200,000 $ 366,315 $ 257,557
Public Safety Projects 46,051 0 3,398 49,449 400,000 400,000 350,551
Total Expenditures $ 242,050 $ (120,772) $ 36,929 $ 158,207 $ 600,000 $ 766,315 $ 608,108

Over Expenditures $ 1,062,710 $ 120,772 $ (36,929) $ 1,146,553 $ 300,000 $ 133,685 $ 1,012,868
Net Change in Fund Balance $ 1,062,710 $ 120,772 $ (36,929) $ 1,146,553 $ 300,000 $ 133,685 $ 1,012,868
Fund Balance, June 30, 2016 $ 2,869,819 $ 0 $ (36,929) $ 2,832,890 $ 2,107,109 $ 1,940,794 $ 892,096
141
Exhibit G-5

Highway/Public Works Fund
Actual Variance
Revenues
Local Taxes $ 2,989,734 $ 0 $ 0 $ 2,989,734 $ 2,845,960 $ 2,845,960 $ 143,774
Other Local Revenues 75,279 0 0 75,279 36,400 109,258 (33,979)
Other Governments and Citizens Groups 28,997 0 0 28,997 0 0 28,997
Total Revenues $ 6,215,258 $ 0 $ 0 $ 6,215,258 $ 6,030,860 $ 6,103,718 $ 111,540
Expenditures
Highways
Administration $ 230,065 $ 0 $ 0 $ 230,065 $ 245,393 $ 245,393 $ 15,328
Highway and Bridge Maintenance 3,319,011 (343,175) 10,237 2,986,073 3,420,971 3,573,937 587,864
Operation and Maintenance of Equipment 695,664 (38,901) 7,913 664,676 1,017,040 977,459 312,783
Other Charges 384,402 (1,250) 0 383,152 403,065 403,065 19,913
Capital Outlay 953,876 (77,669) 104 876,311 1,069,606 1,361,318 485,007
Capital Projects
Highway and Street Capital Projects 2,008,403 (15,614) 49,198 2,041,987 75,000 2,075,000 33,013
Total Expenditures $ 7,591,421 $ (476,609) $ 67,452 $ 7,182,264 $ 6,231,075 $ 8,636,172 $ 1,453,908

Over Expenditures $ (1,376,163) $ 476,609 $ (67,452) $ (967,006) $ (200,215) $ (2,532,454) $ 1,565,448
Net Change in Fund Balance $ (1,376,163) $ 476,609 $ (67,452) $ (967,006) $ (200,215) $ (2,532,454) $ 1,565,448
Fund Balance, June 30, 2016 $ 1,863,482 $ 0 $ (67,452) $ 1,796,030 $ 3,039,430 $ 707,191 $ 1,088,839
142
Exhibit G-6

Other Capital Projects Fund
Actual Variance
Revenues
Local Taxes $ 1,002,420 $ 0 $ 0 $ 1,002,420 $ 971,880 $ 971,880 $ 30,540
Total Revenues $ 1,019,465 $ 0 $ 0 $ 1,019,465 $ 981,880 $ 981,880 $ 37,585
Expenditures
Finance
Data Processing $ 0 $ 0 $ 53,717 $ 53,717 $ 40,000 $ 53,717 $ 0
Public Safety
Sheriff's Department 274,400 (292,995) 375,896 357,301 344,000 375,896 18,595
Jail 0 0 0 0 0 175,000 175,000
Libraries 14,731 0 30,000 44,731 16,675 46,675 1,944
Parks and Fair Boards 0 0 52,000 52,000 0 52,000 0
Other Operations
Other Charges 991 0 19,700 20,691 500 20,700 9
Miscellaneous 19,870 0 0 19,870 36,000 36,000 16,130
Capital Projects
Highway and Street Capital Projects 106,950 (106,950) 0 0 0 0 0
Capital Projects - Donated
Capital Projects Donated to School Department 1,081,213 0 0 1,081,213 781,464 1,137,457 56,244
Total Expenditures $ 1,498,155 $ (399,945) $ 531,313 $ 1,629,523 $ 1,218,639 $ 1,897,445 $ 267,922

Over Expenditures $ (478,690) $ 399,945 $ (531,313) $ (610,058) $ (236,759) $ (915,565) $ 305,507

Notes Issued $ 355,993 $ 0 $ 0 $ 355,993 $ 0 $ 355,993 $ 0
Insurance Recovery 12,396 0 0 12,396 0 12,396 0
Total Other Financing Sources $ 368,389 $ 0 $ 0 $ 368,389 $ 0 $ 368,389 $ 0
Net Change in Fund Balance $ (110,301) $ 399,945 $ (531,313) $ (241,669) $ (236,759) $ (547,176) $ 305,507
Fund Balance, July 1, 2015 778,387 (399,945) 0 378,442 778,387 778,387 (399,945)
Fund Balance, June 30, 2016 $ 668,086 $ 0 $ (531,313) $ 136,773 $ 541,628 $ 231,211 $ (94,438)
143
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.
_____________________________
144
Exhibit H

in Fund Balance - Actual and Budget
Variance
with Final
Budget -
Budgeted Amounts Positive
Actual Original Final (Negative)
Revenues
Local Taxes $ 9,653,437 $ 9,178,535 $ 9,178,535 $ 474,902
Other Local Revenues 702,656 265,000 265,000 437,656
State of Tennessee 1,218,578 1,200,000 1,200,000 18,578
Federal Government 401 0 0 401
Other Governments and Citizens Groups 359,994 0 359,994 0
Total Revenues $ 11,935,066 $ 10,643,535 $ 11,003,529 $ 931,537
Expenditures
Principal on Debt
General Government $ 2,354,027 $ 2,354,027 $ 2,354,027 $ 0
Education 4,741,025 4,541,025 4,741,025 0
Interest on Debt
General Government 625,795 652,788 634,042 8,247
Education 3,066,209 3,075,557 3,116,853 50,644
Other Debt Service
General Government 211,497 182,600 220,293 8,796
Education 1,770,915 0 133,428 (1,637,487)
Total Expenditures $ 12,769,468 $ 10,805,997 $ 11,199,668 $ (1,569,800)

Over Expenditures $ (834,402) $ (162,462) $ (196,139) $ (638,263)

Refunding Debt Issued $ 20,150,000 $ 0 $ 20,150,000 $ 0
Premiums on Debt Sold 3,053,890 0 3,053,890 0
Transfers In 198,646 99,000 99,000 99,646
Transfers Out (67,564) 0 (68,000) 436
Payments to Refunded Debt Escrow Agent (21,550,000) 0 (23,187,488) 1,637,488
Total Other Financing Sources $ 1,784,972 $ 99,000 $ 47,402 $ 1,737,570
Net Change in Fund Balance $ 950,570 $ (63,462) $ (148,737) $ 1,099,307

Fund Balance, July 1, 2015 11,487,786 11,487,786 11,487,786 0
145
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.
Constitutional Officers - Agency Fund The Constitutional Officers - Agency Fund

is used to account for amounts collected in an agency capacity by the county clerk,
circuit and general sessions courts clerk, clerk and master, register of deeds, and
sheriff. Such collections include amounts due the state, cities, other county funds,
litigants, heirs, and others.
146
Exhibit I-1
Combining Statement of Fiduciary Assets and Liabilities
Fiduciary Funds
June 30, 2016
Agency Funds
Constitu-
Cities - tional
Sales Officers -
Tax Agency Total
ASSETS
Cash $ 0 $ 2,110,021 $ 2,110,021

Investments 0 11,425 11,425
Accounts Receivable 0 895 895
Due from Other Governments 2,245,844 0 2,245,844
Total Assets $ 2,245,844 $ 2,122,341 $ 4,368,185
LIABILITIES
Due to Other Taxing Units $ 2,245,844 $ 0 $ 2,245,844

Due to Litigants, Heirs, and Others 0 2,122,341 2,122,341
Total Liabilities $ 2,245,844 $ 2,122,341 $ 4,368,185
147
Exhibit I-2

Combining Statement of Changes in Assets and
Liabilities - All Agency Funds
Beginning Ending
Balance Additions Deductions Balance
Cities - Sales Tax Fund

Assets
Equity in Pooled Cash and Investments $ 0 $ 12,927,910 $ 12,927,910 $ 0
Due from Other Governments 2,090,297 2,245,844 2,090,297 2,245,844
Total Assets $ 2,090,297 $ 15,173,754 $ 15,018,207 $ 2,245,844
Liabilities
Due to Other Taxing Units $ 2,090,297 $ 15,173,754 $ 15,018,207 $ 2,245,844
Total Liabilities $ 2,090,297 $ 15,173,754 $ 15,018,207 $ 2,245,844
Constitutional Officers - Agency Fund

Assets
Cash $ 2,298,644 $ 19,451,171 $ 19,639,794 $ 2,110,021
Investments 11,547 11,425 11,547 11,425
Accounts Receivable 1,097 895 1,097 895
Total Assets $ 2,311,288 $ 19,463,491 $ 19,652,438 $ 2,122,341
Liabilities
Due to Litigants, Heirs, and Others $ 2,311,288 $ 19,463,491 $ 19,652,438 $ 2,122,341
Totals - All Agency Funds

Assets
Cash $ 2,298,644 $ 19,451,171 $ 19,639,794 $ 2,110,021
Equity in Pooled Cash and Investments 0 12,927,910 12,927,910 0
Investments 11,547 11,425 11,547 11,425
Accounts Receivable 1,097 895 1,097 895
Due from Other Governments 2,090,297 2,245,844 2,090,297 2,245,844
Total Assets $ 4,401,585 $ 34,637,245 $ 34,670,645 $ 4,368,185
Liabilities
Due to Other Taxing Units $ 2,090,297 $ 15,173,754 $ 15,018,207 $ 2,245,844
Due to Litigants, Heirs, and Others 2,311,288 19,463,491 19,652,438 2,122,341
148
Maury County School Department
______________________________
This section presents fund financial statements for the Maury County
School Department, a discretely presented component unit. The School
Department uses a General Fund, two Special Revenue Funds, and two
Capital Projects Funds.
______________________________
General Purpose School Fund The General Purpose School Fund is used to
account for general operations of the School Department.
School Federal Projects Fund The School Federal Projects Fund is used to account
for restricted federal revenues, which must be expended on specific education
programs.
Central Cafeteria Fund The Central Cafeteria Fund is used to account for the
cafeteria operations in each of the schools.
Education Capital Projects Fund The Education Capital Projects Fund is used to
account for building construction and renovations of the School Department.
Other Capital Projects Fund The Other Capital Projects Fund is used to account
for building construction and renovations of the School Department.
149
Exhibit J-1

Net (Expense)
Revenue and
Program Revenues Changes in
Operating Capital Net Position
Charges Grants Grants Total
for and and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities
Instruction $ 56,436,099 $ 330,838 $ 7,959,013 $ 0 $ (48,146,248)
Support Services 35,454,620 261,945 292,017 734,470 (34,166,188)
Operation of Non-instructional Services 7,729,640 1,447,857 5,399,991 0 (881,792)
Other Debt Service 359,994 0 0 0 (359,994)
Total Governmental Activities $ 99,980,353 $ 2,040,640 $ 13,651,021 $ 734,470 $ (83,554,222)
General Revenues:
Taxes:
Property Taxes Levied for General Purposes $ 22,596,147
Local Option Sales Tax 14,100,601
Mixed Drink Tax 123,223
Interstate Telecommunications Tax 7,432
Grants and Contributions Not Restricted to Specific Programs 51,030,304
Unrestricted Investment Earnings 10,655
Miscellaneous 97,710
Insurance Recoveries 110,447
Gain on Sale of Capital Assets 49,337
Total General Revenues $ 88,125,856
Change in Net Position $ 4,571,634

Net Position, July 1, 2015 152,012,679
Net Position, June 30, 2016 $ 156,584,313
150
Exhibit J-2

Balance Sheet - Governmental Funds
June 30, 2016
Nonmajor
Funds
Major Funds Other
General Education Govern- Total
Purpose Capital mental Governmental
School Projects Funds Funds
ASSETS
Cash $ 0 $ 0 $ 3,500 $ 3,500

Equity in Pooled Cash and Investments 10,960,498 25,822,376 2,666,232 39,449,106
Inventories 0 0 98,465 98,465
Accounts Receivable 56,892 0 19,009 75,901
Due from Other Governments 2,777,942 0 712,709 3,490,651
Due from Other Funds 106,465 0 0 106,465
Property Taxes Receivable 22,144,591 0 0 22,144,591
Allowance for Uncollectible Property Taxes (549,278) 0 0 (549,278)
Total Assets $ 35,497,110 $ 25,822,376 $ 3,499,915 $ 64,819,401
LIABILITIES
Accounts Payable $ 10,044 $ 0 $ 66,927 $ 76,971

Accrued Payroll 0 0 8,279 8,279
Payroll Deductions Payable 300,140 0 20,127 320,267
Contracts Payable 0 1,880,914 0 1,880,914
Retainage Payable 0 35,000 0 35,000
Due to Other Funds 0 0 106,465 106,465
Total Liabilities $ 310,184 $ 1,915,914 $ 201,798 $ 2,427,896
Deferred Current Property Taxes $ 21,040,474 $ 0 $ 0 $ 21,040,474

Deferred Delinquent Property Taxes 480,591 0 0 480,591
Other Deferred/Unavailable Revenue 1,255,020 0 0 1,255,020
Total Deferred Inflows of Resources $ 22,776,085 $ 0 $ 0 $ 22,776,085
(Continued)
151
Exhibit J-2

Balance Sheet - Governmental Funds
Discretely Presented Maury County School Department (Cont.)
Nonmajor
Funds
Major Funds Other
FUND BALANCES
Nonspendable:
Inventory $ 0 $ 0 $ 98,465 $ 98,465
Restricted:
Restricted for Education 6,916 23,906,462 2,801,393 26,714,771
Committed:
Committed for Education 2,182,494 0 398,259 2,580,753
Assigned:
Assigned for Education 2,968,046 0 0 2,968,046
Unassigned 7,253,385 0 0 7,253,385
Total Fund Balances $ 12,410,841 $ 23,906,462 $ 3,298,117 $ 39,615,420
Total Liabilities, Deferred Inflows of Resources, and Fund Balances $ 35,497,110 $ 25,822,376 $ 3,499,915 $ 64,819,401
152
Exhibit J-3

Reconciliation of the Balance Sheet of Governmental Funds to
the Statement of Net Position
June 30, 2016

of net position (Exhibit A) are different because:
Total fund balances - balance sheet - governmental funds (Exhibit J-2) $ 39,615,420
(1) Capital assets used in governmental activities are not

financial resources and therefore are not reported in
Add: land $ 3,019,949
Add: construction in progress 36,873,919
Add: building and improvements net of accumulated depreciation 93,358,775
Add: other capital assets net of accumulated depreciation 3,723,511 136,976,154
(2) Long-term liabilities are not due and payable in the current period
and therefore are not reported in the governmental funds.
Less: other postemployment benefits liability $ (13,376,732)
Less: net pension liability - teacher legacy pension plan (480,042)
Less: compensated absences payable (3,137,563) (16,994,337)
(3) Amounts reported as deferred outflows of resources and deferred

inflows of resources related to pensions will be amortized and
recognized as components of pension expense in future years:
Add: deferred outflows of resources related to pensions $ 5,125,770
Less: deferred inflows of resources related to pensions (11,053,502) (5,927,732)
(4) Net pension assets of the agent and cost-sharing plans are not
current financial resources and therefore are not reported in
Add: net pension asset - agent pension plan $ 1,135,334
Add: net pension asset - teacher retirement pension plan 43,863 1,179,197
(5) Other long-term assets are not available to pay for

current-period expenditures and therefore are deferred
in the governmental funds. 1,735,611
Net position of governmental activities (Exhibit A) $ 156,584,313
153
Exhibit J-4

and Changes in Fund Balances -
Governmental Funds
Nonmajor
Funds
Major Funds Other
Revenues
Local Taxes $ 36,724,242 $ 0 $ 0 $ 36,724,242
Licenses and Permits 6,812 0 0 6,812
Charges for Current Services 433,035 0 1,479,739 1,912,774
Other Local Revenues 142,251 0 59,903 202,154
State of Tennessee 53,061,566 0 58,677 53,120,243
Federal Government 379,185 0 11,261,260 11,640,445
Total Revenues $ 90,747,091 $ 0 $ 12,859,579 $ 103,606,670
Expenditures
Current:
Instruction $ 54,111,918 $ 0 $ 3,729,231 $ 57,841,149
Support Services 31,516,338 0 2,277,006 33,793,344
Operation of Non-Instructional Services 1,233,053 0 6,378,473 7,611,526
Capital Outlay 2,499,622 0 1,236,607 3,736,229
Debt Service:
Other Debt Service 359,994 0 0 359,994
Capital Projects 0 25,576,386 0 25,576,386

Over Expenditures $ 1,026,166 $ (25,576,386) $ (761,738) $ (25,311,958)

Insurance Recovery $ 110,447 $ 0 $ 0 $ 110,447
Transfers In 141,532 0 0 141,532
(Continued)
154
Exhibit J-4

Governmental Funds
Nonmajor
Funds
Major Funds Other
Other Financing Sources (Uses) (Cont.)

Transfers Out $ 0 $ 0 $ (141,532) $ (141,532)
Total Other Financing Sources (Uses) $ 251,979 $ 0 $ (141,532) $ 110,447
Net Change in Fund Balances $ 1,278,145 $ (25,576,386) $ (903,270) $ (25,201,511)

Fund Balance, July 1, 2015 11,132,696 49,482,848 4,201,387 64,816,931
155
Exhibit J-5

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities

of activities (Exhibit B) are different because:
Net change in fund balances - total governmental funds (Exhibit J-4) $ (25,201,511)
(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 $ 30,520,430
Less: current-year depreciation expense (4,804,499) 25,715,931
(2) The net effect of various miscellaneous transactions involving capital assets
(sales, trade-ins, and donations) is to increase net position.
Add: assets donated and capitalized $ 734,470
Less: book value of capital assets disposed (2,761) 731,709
(3) 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, 2016 $ 1,735,611
Less: deferred delinquent property taxes and other deferred June 30, 2015 (1,632,450) 103,161
(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 - agent pension plan $ (1,904,032)
Change in net pension asset - teacher retirement pension plan 43,863
Change in net pension liability - teacher legacy pension plan (668,822)
Change in deferred outflows related to pensions 242,714
Change in deferred inflows related to pensions 6,981,146
Change in compensated absences payable 316,198
Change in other postemployment benefits liability (1,788,723) 3,222,344
Change in net position of governmental activities (Exhibit B) $ 4,571,634
156
Exhibit J-6

Combining Balance Sheet - Nonmajor Governmental Funds
June 30, 2016
Capital
Special Revenue Funds Projects Fund Total
School Other Nonmajor
Federal Central Capital Governmental
Projects Cafeteria Total Projects Funds
ASSETS
Cash $ 0 $ 3,500 $ 3,500 $ 0 $ 3,500

Equity in Pooled Cash and Investments 184,244 2,379,003 2,563,247 102,985 2,666,232
Inventories 0 98,465 98,465 0 98,465
Accounts Receivable 17,106 1,903 19,009 0 19,009
Due from Other Governments 340,011 372,698 712,709 0 712,709
Total Assets $ 541,361 $ 2,855,569 $ 3,396,930 $ 102,985 $ 3,499,915
LIABILITIES
Accounts Payable $ 23,615 $ 43,312 $ 66,927 $ 0 $ 66,927

Accrued Payroll 0 8,279 8,279 0 8,279
Payroll Deductions Payable 13,022 7,105 20,127 0 20,127
Due to Other Funds 106,465 0 106,465 0 106,465
Total Liabilities $ 143,102 $ 58,696 $ 201,798 $ 0 $ 201,798
FUND BALANCES
Nonspendable:
Inventory $ 0 $ 98,465 $ 98,465 $ 0 $ 98,465
Restricted:
Restricted for Education 0 2,698,408 2,698,408 102,985 2,801,393
Committed:
Committed for Education 398,259 0 398,259 0 398,259
Total Fund Balances $ 398,259 $ 2,796,873 $ 3,195,132 $ 102,985 $ 3,298,117
Total Liabilities and Fund Balances $ 541,361 $ 2,855,569 $ 3,396,930 $ 102,985 $ 3,499,915
157
Exhibit J-7

Capital
Special Revenue Funds Projects Fund Total
School Other Nonmajor
Federal Central Capital Governmental
Projects Cafeteria Total Projects Funds
Revenues
Charges for Current Services $ 0 $ 1,479,739 $ 1,479,739 $ 0 $ 1,479,739
Other Local Revenues 0 59,903 59,903 0 59,903
State of Tennessee 0 58,677 58,677 0 58,677
Federal Government 6,036,651 5,224,609 11,261,260 0 11,261,260
Total Revenues $ 6,036,651 $ 6,822,928 $ 12,859,579 $ 0 $ 12,859,579
Expenditures
Current:
Instruction $ 3,729,231 $ 0 $ 3,729,231 $ 0 $ 3,729,231
Support Services 2,203,305 73,701 2,277,006 0 2,277,006
Operation of Non-Instructional Services 0 6,378,473 6,378,473 0 6,378,473
Capital Outlay 0 0 0 1,236,607 1,236,607
Total Expenditures $ 5,932,536 $ 6,452,174 $ 12,384,710 $ 1,236,607 $ 13,621,317

Over Expenditures $ 104,115 $ 370,754 $ 474,869 $ (1,236,607) $ (761,738)

Transfers Out $ (106,465) $ (35,067) $ (141,532) $ 0 $ (141,532)
Total Other Financing Sources (Uses) $ (106,465) $ (35,067) $ (141,532) $ 0 $ (141,532)
Net Change in Fund Balances $ (2,350) $ 335,687 $ 333,337 $ (1,236,607) $ (903,270)

Fund Balance, July 1, 2015 400,609 2,461,186 2,861,795 1,339,592 4,201,387
Fund Balance, June 30, 2016 $ 398,259 $ 2,796,873 $ 3,195,132 $ 102,985 $ 3,298,117
158
Exhibit J-8

General Purpose School Fund
Actual Variance
Revenues
Local Taxes $ 36,724,242 $ 0 $ 0 $ 36,724,242 $ 33,652,562 $ 33,652,562 $ 3,071,680
Licenses and Permits 6,812 0 0 6,812 5,400 5,400 1,412
Charges for Current Services 433,035 0 0 433,035 245,000 376,773 56,262
Federal Government 379,185 0 0 379,185 120,000 323,770 55,415
Total Revenues $ 90,747,091 $ 0 $ 0 $ 90,747,091 $ 85,596,580 $ 87,704,069 $ 3,043,022
Expenditures
Instruction
Regular Instruction Program $ 42,399,414 $ (223,066) $ 773,627 $ 42,949,975 $ 43,002,721 $ 44,170,777 $ 1,220,802
Alternative Instruction Program 594,885 0 0 594,885 591,683 591,333 (3,552)
Special Education Program 8,100,127 (10,488) 65,550 8,155,189 8,209,348 8,261,863 106,674
Vocational Education Program 2,743,177 (62,583) 51,558 2,732,152 2,909,704 3,811,367 1,079,215
Other 274,315 (1,090) 214 273,439 275,383 275,383 1,944
Support Services
Attendance 477,150 (157) 4,794 481,787 595,197 482,414 627
Health Services 675,646 (7,075) 3,007 671,578 642,037 698,366 26,788
Other Student Support 2,034,450 (4,366) 34,000 2,064,084 1,919,005 2,059,887 (4,197)
Regular Instruction Program 2,781,857 (12,137) 10,736 2,780,456 2,733,666 2,816,261 35,805
Alternative Instruction Program 166,696 0 75 166,771 170,739 170,739 3,968
Special Education Program 1,016,988 (3,138) 4,861 1,018,711 1,013,789 1,060,811 42,100
Vocational Education Program 156,652 (566) 995 157,081 162,826 162,826 5,745
Other Programs 539,568 0 0 539,568 0 539,568 0
Board of Education 2,623,589 (6,142) 211 2,617,658 2,534,695 2,546,681 (70,977)
Director of Schools 367,241 (125) 955 368,071 339,518 380,832 12,761
Office of the Principal 6,788,521 (39) 365 6,788,847 6,767,273 6,808,807 19,960
Fiscal Services 671,289 (2,701) 11,202 679,790 594,740 761,287 81,497
Human Services/Personnel 287,982 (4,471) 1,120 284,631 291,570 304,320 19,689
(Continued)
159
Exhibit J-8

General Purpose School Fund (Cont.)
Actual Variance
Support Services (Cont.)
Operation of Plant $ 6,010,941 $ (48,993) $ 222,345 $ 6,184,293 $ 6,163,705 $ 6,162,655 $ (21,638)
Maintenance of Plant 1,618,165 (115,776) 48,049 1,550,438 1,432,436 1,802,758 252,320
Transportation 4,209,977 (14,300) 141,392 4,337,069 4,395,311 4,728,073 391,004
Central and Other 1,089,626 (84,461) 294,827 1,299,992 997,234 1,309,075 9,083
Operation of Non-Instructional Services
Community Services 135,941 (19,073) 0 116,868 0 125,000 8,132
Early Childhood Education 1,097,112 (7,850) 123 1,089,385 0 1,113,106 23,721
Capital Outlay
Regular Capital Outlay 2,499,622 (1,343,068) 1,298,040 2,454,594 0 4,066,909 1,612,315
Other Debt Service
Education 359,994 0 0 359,994 359,994 359,994 0
Total Expenditures $ 89,720,925 $ (1,971,665) $ 2,968,046 $ 90,717,306 $ 86,102,574 $ 95,571,092 $ 4,853,786

Over Expenditures $ 1,026,166 $ 1,971,665 $ (2,968,046) $ 29,785 $ (505,994) $ (7,867,023) $ 7,896,808

Insurance Recovery $ 110,447 $ 0 $ 0 $ 110,447 $ 0 $ 89,715 $ 20,732
Transfers In 141,532 0 0 141,532 150,000 150,000 (8,468)
Transfers Out 0 0 0 0 (4,000) (4,000) 4,000
Total Other Financing Sources $ 251,979 $ 0 $ 0 $ 251,979 $ 146,000 $ 235,715 $ 16,264
Net Change in Fund Balance $ 1,278,145 $ 1,971,665 $ (2,968,046) $ 281,764 $ (359,994) $ (7,631,308) $ 7,913,072
Fund Balance, July 1, 2015 11,132,696 (1,971,665) 0 9,161,031 5,503,671 5,503,671 3,657,360
Fund Balance, June 30, 2016 $ 12,410,841 $ 0 $ (2,968,046) $ 9,442,795 $ 5,143,677 $ (2,127,637) $ 11,570,432
160
Exhibit J-9
School Federal Projects Fund
Variance
with Final
Budget -
Revenues
Federal Government $ 6,036,651 $ 6,380,204 $ 8,497,323 $ (2,460,672)
Total Revenues $ 6,036,651 $ 6,380,204 $ 8,497,323 $ (2,460,672)
Expenditures
Instruction
Regular Instruction Program $ 2,348,264 $ 2,452,858 $ 2,467,183 $ 118,919
Special Education Program 1,292,056 1,413,933 2,711,700 1,419,644
Vocational Education Program 88,911 78,889 92,383 3,472
Support Services
Health Services 228,271 277,487 286,335 58,064
Other Student Support 127,474 144,856 438,390 310,916
Regular Instruction Program 906,632 901,627 1,203,560 296,928
Special Education Program 447,840 458,502 573,800 125,960
Vocational Education Program 13,550 8,239 13,492 (58)
Transportation 479,538 534,850 564,579 85,041

Over Expenditures $ 104,115 $ 108,963 $ 145,901 $ (41,786)

Transfers Out $ (106,465) $ (108,963) $ (145,903) $ 39,438
Total Other Financing Sources $ (106,465) $ (108,963) $ (145,903) $ 39,438
Net Change in Fund Balance $ (2,350) $ 0 $ (2) $ (2,348)

Fund Balance, July 1, 2015 400,609 400,609 400,609 0
Fund Balance, June 30, 2016 $ 398,259 $ 400,609 $ 400,607 $ (2,348)
161
Exhibit J-10
Central Cafeteria Fund
Variance
with Final
Budget -
Revenues
Charges for Current Services $ 1,479,739 $ 1,554,000 $ 1,554,000 $ (74,261)
Other Local Revenues 59,903 12,000 12,000 47,903
State of Tennessee 58,677 57,009 57,009 1,668
Federal Government 5,224,609 5,291,571 5,291,571 (66,962)
Total Revenues $ 6,822,928 $ 6,914,580 $ 6,914,580 $ (91,652)
Expenditures
Support Services
Board of Education $ 73,701 $ 73,700 $ 73,701 $ 0
Food Service 6,378,473 6,796,569 7,546,105 1,167,632

Over Expenditures $ 370,754 $ 44,311 $ (705,226) $ 1,075,980

Transfers Out $ (35,067) $ (41,850) $ (41,850) $ 6,783
Total Other Financing Sources $ (35,067) $ (41,850) $ (41,850) $ 6,783
Net Change in Fund Balance $ 335,687 $ 2,461 $ (747,076) $ 1,082,763

Fund Balance, July 1, 2015 2,461,186 1,766,820 1,766,820 694,366
162
MISCELLANEOUS SCHEDULES
163
Exhibit K-1

Schedule of Changes in Long-term Notes, Other Loans, and Bonds
Paid
and/or
Original Date Last Issued Matured
Amount Interest of Maturity Outstanding During During Debt Outstanding
Description of Indebtedness of Issue Rate Issue Date 7-1-15 Period Period Refunded 6-30-16
NOTES PAYABLE
Payable through General Debt Service Fund
General Obligation Refunding $ 6,675,000 4 % 5-23-12 4-1-17 $ 4,560,000 $ 0 $ 2,230,000 $ 0 $ 2,330,000
General Obligation School 355,993 1.5 4-20-16 4-1-20 0 355,993 0 0 355,993
Total Notes Payable $ 4,560,000 $ 355,993 $ 2,230,000 $ 0 $ 2,685,993
OTHER LOANS PAYABLE

Qualified School Construction Bond (QSCB) 4,408,000 (1) 10-1-10 9-15-27 $ 3,353,634 $ 0 $ 275,052 $ 0 $ 3,078,582
Total Other Loans Payable $ 3,353,634 $ 0 $ 275,052 $ 0 $ 3,078,582
BONDS PAYABLE
Criminal Justice Center and School Construction 29,000,000 3.5 to 5 6-12-08 4-1-28 $ 26,000,000 $ 0 $ 1,100,000 $ 21,550,000 $ 3,350,000
General Obligation Refunding 18,320,000 1 to 4 5-23-12 4-1-20 13,840,000 0 2,655,000 0 11,185,000
School and Public Improvement 12,250,000 2 to 5 10-14-14 10-14-30 12,050,000 0 835,000 0 11,215,000
School Improvement 43,945,000 2 to 5 6-1-15 4-1-36 43,965,000 0 0 0 43,965,000
General Obligation Refunding 20,150,000 2.05 12-22-15 4-1-28 0 20,150,000 0 0 20,150,000
Total Bonds Payable $ 95,855,000 $ 20,150,000 $ 4,590,000 $ 21,550,000 $ 89,865,000
(1) Interest rate of approximately 4.85 percent is offset by a federal interest subsidy.
Note: This schedule for the primary government excludes Maury Regional Hospital.
164
Exhibit K-2
Schedule of Long-term Debt Requirements by Year
Year
Ending Notes
2017 $ 2,417,227 $ 98,262 $ 2,515,489

2018 88,258 4,031 92,289
2019 89,582 2,708 92,290
2020 90,926 1,364 92,290
Total $ 2,685,993 $ 106,365 $ 2,792,358
Year
Ending Other Loans
June 30 Principal Interest (1) Other Fees Total
2017 $ 275,052 $ 213,700 $ 3,526 $ 492,278

2018 275,052 213,700 3,526 492,278
2019 275,052 213,700 3,526 492,278
2020 275,052 213,700 3,526 492,278
2021 275,052 213,700 3,526 492,278
2022 275,052 213,700 3,526 492,278
2023 275,052 213,700 3,526 492,278
2024 275,052 213,700 3,526 492,278
2025 275,052 213,700 3,526 492,278
2026 275,052 213,700 3,526 492,278
2027 302,128 213,700 3,526 519,354
2028 25,934 1,617 588 28,139
Total $ 3,078,582 $ 2,352,317 $ 39,374 $ 5,470,273
(Continued)
165
Exhibit K-2
Schedule of Long-term Debt Requirements by Year (Cont.)
Year
Ending Bonds
2017 $ 4,850,000 $ 3,638,382 $ 8,488,382

2018 5,905,000 3,452,482 9,357,482
2019 5,965,000 3,216,882 9,181,882
2020 6,245,000 2,993,532 9,238,532
2021 5,020,000 2,710,432 7,730,432
2022 5,135,000 2,459,432 7,594,432
2023 5,310,000 2,202,682 7,512,682
2024 5,490,000 1,937,182 7,427,182
2025 5,660,000 1,674,932 7,334,932
2026 4,835,000 1,425,269 6,260,269
2027 4,890,000 1,281,769 6,171,769
2028 4,945,000 1,135,069 6,080,069
2029 3,060,000 960,569 4,020,569
2030 3,180,000 841,569 4,021,569
2031 2,940,000 717,869 3,657,869
2032 3,060,000 600,268 3,660,268
2033 3,165,000 493,168 3,658,168
2034 3,275,000 382,393 3,657,393
2035 3,405,000 251,393 3,656,393
2036 3,530,000 127,962 3,657,962
Total $ 89,865,000 $ 32,503,236 $ 122,368,236
(1) Includes interest requirements on Qualified School Construction Bonds, Series 2010,
before federal interest rate subsidy.
Note: This schedule for the primary government excludes Maury Regional Hospital.
166
Exhibit K-3
Schedule of Investments
June 30, 2016
Date Date
of of Interest
Fund and Type Purchase Maturity Rates Amount
Constitutional Officers - Agency Fund

Clerk and Master
Merrill Lynch - NOW Account Various None Varies $ 11,425
167
Exhibit K-4
Schedule of Transfers
Primary Government and Discretely Presented Maury County School Department
From Fund To Fund Purpose Amount
PRIMARY GOVERNMENT
General Fund General Debt Service Service debt $ 198,646
General Debt Service Highway Capital Projects Operations 67,564
Total Transfers Primary Government $ 266,210
DISCRETELY PRESENTED MAURY

COUNTY SCHOOL DEPARTMENT
Central Cafeteria General Purpose School Operations $ 35,067
School Federal Projects " Indirect Costs 106,465
Total Transfers Discretely Presented

Maury County School Department $ 141,532
168
Exhibit K-5

Schedule of Salaries and Official Bonds of Principal Officials
Primary Government and Discretely Presented Maury County School Department
Salary
Paid
During
Official Authorization for Salary Period Bond Surety
County Mayor Section 8-24-102, TCA $ 95,147 $ 100,000 RLI Insurance Company
Road Superintendent Section 8-24-102, TCA 87,295 100,000 "
Director of Schools
Cynthia Johnson - Interim (7-1-15 through 8-13-15) State Board of Education and
Local Board of Education 20,000 (7)
Christopher Marczak (8-14-15 through 6-30-16) State Board of Education and
Local Board of Education 153,798 (1) (7)
Trustee Section 8-24-102, TCA 79,352 3,660,000 Cincinnati Insurance Company
Assessor of Property Section 8-24-102, TCA 79,352 (2) 50,000 RLI Insurance Company
County Clerk Section 8-24-102, TCA 79,352 100,000 "
Circuit and General Sessions Courts Clerk: Section 8-24-102, TCA 79,352 100,000 "
Clerk and Master Section 8-24-102, TCA , and
Chancery Court Judge 79,352 (3) 50,000 RLI Insurance Company
Register of Deeds Section 8-24-102, TCA 79,352 100,000 "
Sheriff Section 8-24-102, TCA , and
County Commission 87,295 (4) 100,000 "
Director of Accounts and Budgets Chapter 233, Private Acts of 1963,
as amended 81,738 100,000 "
Director of Human Resources Chapter 91, Private Acts of 2004 69,868 (5) (8)
Purchasing Agent County Commission 58,552 (6) 100,000 "
Other Bonds
Public Employee Dishonesty 150,000 Local Government Insurance Pool
School Employee Blanket Bond 1,000,000 Tennessee Risk Management Trust
(1) Does not include 100 percent of the premiums for family health and dental insurance ($14,855) or 100 percent of the premiums for $100,000 Life Insurance Policy ($70).
(2) Does not include $950 for a state board of equalization salary supplement.
(3) Does not include $4,680 in special commissioner fees.
(4) Does not include $3,029 for serving as workhouse superintendent and $600 for a law enforcement training supplement.
(5) Includes $700 longevity pay.
(6) Includes $1,000 longevity pay.
(7) Covered under the school's blanket bond.
(8) Covered under the county's blanket bond.
169
Exhibit K-6

Schedule of Detailed Revenues -
All Governmental Fund Types
Debt Service
Special Revenue Funds Fund
Adequate Constitu -
Drug Development Officers - Public Debt
General Control Tax Fees Works Service
Local Taxes
County Property Taxes
Current Property Tax $ 10,834,617 $ 0 $ 0 $ 0 $ 2,720,600 $ 7,213,063
Trustee's Collections - Prior Year 303,088 0 0 0 66,893 141,699
Trustee's Collections - Bankruptcy 5,077 0 0 0 1,225 3,060
Circuit Clerk/Clerk and Master Collections - Prior Years 191,520 0 0 0 47,301 122,603
Interest and Penalty 56,475 0 0 0 12,807 28,642
Pickup Taxes 55,904 0 0 0 13,885 36,308
Payments in-Lieu-of Taxes - T.V.A. 0 0 0 0 0 12,757
Payments in-Lieu-of Taxes - Local Utilities 0 0 0 0 0 428,001
Payments in-Lieu-of Taxes - Other 2,362,500 0 0 0 0 159,023
County Local Option Taxes
Local Option Sales Tax 341,069 0 0 0 0 0
Hotel/Motel Tax 843,343 0 0 0 0 0
Wheel Tax 0 0 0 0 0 1,032,289
Litigation Tax - General 444,196 0 0 0 0 0
Litigation Tax - Jail, Workhouse, or Courthouse 0 0 0 0 0 433,031
Business Tax 1,219,034 0 0 0 0 0
Mineral Severance Tax 0 0 0 0 127,023 0
Adequate Facilities/Development Tax 0 0 1,304,760 0 0 0
Statutory Local Taxes
Bank Excise Tax 0 0 0 0 0 42,961
Wholesale Beer Tax 379,092 0 0 0 0 0
Interstate Telecommunications Tax 1,409 0 0 0 0 0
Total Local Taxes $ 17,037,324 $ 0 $ 1,304,760 $ 0 $ 2,989,734 $ 9,653,437
(Continued)
170
Exhibit K-6

All Governmental Fund Types (Cont.)
Debt Service
Adequate Constitu -
Licenses and Permits

Licenses
Cable TV Franchise $ 192,418 $ 0 $ 0 $ 0 $ 0 $ 0
Permits
Beer Permits 4,826 0 0 0 0 0
Building Permits 229,850 0 0 0 0 0
Other Permits 10,544 0 0 0 0 0
Total Licenses and Permits $ 437,638 $ 0 $ 0 $ 0 $ 0 $ 0
Fines, Forfeitures, and Penalties

Circuit Court
Fines $ 18,747 $ 0 $ 0 $ 0 $ 0 $ 0
Officers Costs 27,029 0 0 0 0 0
Drug Control Fines 0 61,458 0 0 0 0
Drug Court Fees 5,188 0 0 0 0 0
Jail Fees 16,461 0 0 0 0 0
DUI Treatment Fines 9,046 0 0 0 0 0
Data Entry Fee - Circuit Court 3,914 0 0 0 0 0
Courtroom Security Fee 107 0 0 0 0 0
Victims Assistance Assessments 19,888 0 0 0 0 0
Criminal Court
General Sessions Court
Fines 66,114 0 0 0 0 0
Game and Fish Fines 2,618 0 0 0 0 0
(Continued)
171
Exhibit K-6

Debt Service
Adequate Constitu -
Fines, Forfeitures, and Penalties (Cont.)

General Sessions Court (Cont.)
Drug Control Fines $ 0 $ 5,492 $ 0 $ 0 $ 0 $ 0
Drug Court Fees 15,689 0 0 0 0 0
Jail Fees 48,290 0 0 0 0 0
Data Entry Fee - General Sessions Court 37,338 0 0 0 0 0
Courtroom Security Fee 90 0 0 0 0 0
Juvenile Court
Data Entry Fee - Juvenile Court 3,477 0 0 0 0 0
Chancery Court
Data Entry Fee - Chancery Court 10,216 0 0 0 0 0
Other Fines, Forfeitures, and Penalties
Proceeds from Confiscated Property 0 32,354 0 0 0 0
Other Fines, Forfeitures, and Penalties 10,450 0 0 0 0 0
Total Fines, Forfeitures, and Penalties $ 457,855 $ 99,304 $ 0 $ 0 $ 0 $ 0
Charges for Current Services

General Service Charges
Other Employee Benefit Charges/Contributions $ 780 $ 0 $ 0 $ 0 $ 0 $ 0
Work Release Charges for Board 23,025 0 0 0 0 0
Service Charges 500 0 0 0 0 0
Fees
Subdivision Lot Fees 31,175 0 0 0 0 0
Recreation Fees 31,093 0 0 0 0 0
(Continued)
172
Exhibit K-6

Debt Service
Adequate Constitu -
Charges for Current Services (Cont.)

Fees (Cont.)
Copy Fees $ 870 $ 0 $ 0 $ 0 $ 0 $ 0
Library Fees 14,777 0 0 0 0 0
Greenbelt Late Application Fee 300 0 0 0 0 0
Telephone Commissions 150,516 0 0 0 0 0
Vending Machine Collections 167 0 0 0 0 0
Tourism Fees 13,988 0 0 0 0 0
Constitutional Officers' Fees and Commissions 0 0 0 62,208 0 0
Data Processing Fee - Register 34,582 0 0 0 0 0
Data Processing Fee - Sheriff 10,105 0 0 0 0 0
Sexual Offender Registration Fee - Sheriff 6,450 0 0 0 0 0
Data Processing Fee - County Clerk 8,116 0 0 0 0 0
Total Charges for Current Services $ 326,444 $ 0 $ 0 $ 62,208 $ 0 $ 0
Other Local Revenues

Recurring Items
Investment Income $ 0 $ 0 $ 0 $ 0 $ 0 $ 702,656
Lease/Rentals 138,603 0 0 0 0 0
Sale of Materials and Supplies 0 0 0 0 56,673 0
Commissary Sales 30,937 0 0 0 0 0
Sale of Animals/Livestock 80,046 0 0 0 0 0
Miscellaneous Refunds 16,691 0 0 0 658 0
Nonrecurring Items
Revenue from Joint Ventures 170,286 0 0 0 0 0
Sale of Equipment 3,624 0 0 0 17,748 0
Damages Recovered from Individuals 510 0 0 0 200 0
Contributions and Gifts 40,247 0 0 0 0 0
(Continued)
173
Exhibit K-6

Debt Service
Adequate Constitu -
Other Local Revenues (Cont.)

Other Local Revenues $ 315,099 $ 0 $ 0 $ 0 $ 0 $ 0
Total Other Local Revenues $ 796,043 $ 0 $ 0 $ 0 $ 75,279 $ 702,656
Fees Received From County Officials

Fees In-Lieu-of Salary
County Clerk $ 935,160 $ 0 $ 0 $ 0 $ 0 $ 0
Circuit Court Clerk 287,901 0 0 0 0 0
General Sessions Court Clerk 642,750 0 0 0 0 0
Clerk and Master 328,385 0 0 0 0 0
Juvenile Court Clerk 85,826 0 0 0 0 0
Register 504,703 0 0 0 0 0
Sheriff 38,705 0 0 0 0 0
Trustee 1,508,187 0 0 0 0 0
Total Fees Received From County Officials $ 4,331,617 $ 0 $ 0 $ 0 $ 0 $ 0
State of Tennessee
General Government Grants
Juvenile Services Program $ 9,000 $ 0 $ 0 $ 0 $ 0 $ 0
State Reappraisal Grant 1,950 0 0 0 0 0
Public Safety Grants
Law Enforcement Training Programs 46,800 0 0 0 0 0
Health and Welfare Grants
Other Health and Welfare Grants 622,060 0 0 0 0 0
Public Works Grants
Bridge Program 0 0 0 0 348,345 0
State Aid Program 0 0 0 0 313,706 0
(Continued)
174
Exhibit K-6

Debt Service
Adequate Constitu -
State of Tennessee (Cont.)

Other State Revenues
Income Tax $ 148,075 $ 0 $ 0 $ 0 $ 0 $ 0
Beer Tax 18,488 0 0 0 0 0
Vehicle Certificate of Title Fees 12,479 0 0 0 0 0
Alcoholic Beverage Tax 135,996 0 0 0 0 0
State Revenue Sharing - T.V.A. 0 0 0 0 0 1,218,578
Contracted Prisoner Boarding 2,165,647 0 0 0 0 0
Gasoline and Motor Fuel Tax 0 0 0 0 2,400,783 0
Petroleum Special Tax 0 0 0 0 58,414 0
Registrar's Salary Supplement 15,164 0 0 0 0 0
Other State Grants 18,504 0 0 0 0 0
Other State Revenues 115,007 0 0 0 0 0
Total State of Tennessee $ 3,309,170 $ 0 $ 0 $ 0 $ 3,121,248 $ 1,218,578
Federal Government
Federal Through State
Homeland Security Grants $ 62,047 $ 0 $ 0 $ 0 $ 0 $ 0
Law Enforcement Grants 110,395 0 0 0 0 0
Other Federal through State 483,250 0 0 0 0 0
Direct Federal Revenue
Asset Forfeiture Funds 0 8,331 0 0 0 0
Tax Credit Bond Rebate 198,666 0 0 0 0 0
Other Direct Federal Revenue 21,647 0 0 0 0 401
Total Federal Government $ 876,005 $ 8,331 $ 0 $ 0 $ 0 $ 401
(Continued)
175
Exhibit K-6

Debt Service
Adequate Constitu -
Other Governments and Citizens Groups

Other Governments
Paving and Maintenance $ 0 $ 0 $ 0 $ 0 $ 28,997 $ 0
Contributions 0 1,416 0 0 0 359,994
Citizens Groups
Donations 19,320 0 0 0 0 0
Other
Other 49,182 0 0 0 0 0
Total Other Governments and Citizens Groups $ 68,502 $ 1,416 $ 0 $ 0 $ 28,997 $ 359,994
Total $ 27,640,598 $ 109,051 $ 1,304,760 $ 62,208 $ 6,215,258 $ 11,935,066
(Continued)
176
Exhibit K-6


Highway Other
Capital Capital
Projects Projects Total
Local Taxes
Current Property Tax $ 0 $ 950,806 $ 21,719,086
Trustee's Collections - Prior Year 0 25,223 536,903
Trustee's Collections - Bankruptcy 0 461 9,823
Circuit Clerk/Clerk and Master Collections - Prior Years 0 16,564 377,988
Interest and Penalty 0 4,504 102,428
Pickup Taxes 0 4,862 110,959
Payments in-Lieu-of Taxes - T.V.A. 0 0 12,757
Payments in-Lieu-of Taxes - Local Utilities 0 0 428,001
Payments in-Lieu-of Taxes - Other 0 0 2,521,523
Local Option Sales Tax 0 0 341,069
Hotel/Motel Tax 0 0 843,343
Wheel Tax 1,032,288 0 2,064,577
Litigation Tax - General 0 0 444,196
Litigation Tax - Jail, Workhouse, or Courthouse 0 0 433,031
Business Tax 0 0 1,219,034
Mineral Severance Tax 0 0 127,023
Adequate Facilities/Development Tax 0 0 1,304,760
Bank Excise Tax 0 0 42,961
Wholesale Beer Tax 0 0 379,092
Interstate Telecommunications Tax 0 0 1,409
Total Local Taxes $ 1,032,288 $ 1,002,420 $ 33,019,963
(Continued)
177
Exhibit K-6


Highway Other
Capital Capital

Licenses
Cable TV Franchise $ 0 $ 0 $ 192,418
Permits
Beer Permits 0 0 4,826
Building Permits 0 0 229,850
Other Permits 0 0 10,544
Total Licenses and Permits $ 0 $ 0 $ 437,638
Fines, Forfeitures, and Penalties

Circuit Court
Fines $ 0 $ 0 $ 18,747
Officers Costs 0 0 27,029
Drug Control Fines 0 0 61,458
Drug Court Fees 0 0 5,188
Jail Fees 0 0 16,461
DUI Treatment Fines 0 0 9,046
Data Entry Fee - Circuit Court 0 0 3,914
Courtroom Security Fee 0 0 107
Victims Assistance Assessments 0 0 19,888
Criminal Court
Fines 0 0 66,114
Game and Fish Fines 0 0 2,618
(Continued)
178
Exhibit K-6


Highway Other
Capital Capital
Fines, Forfeitures, and Penalties (Cont.)

General Sessions Court (Cont.)
Drug Control Fines $ 0 $ 0 $ 5,492
Drug Court Fees 0 0 15,689
Jail Fees 0 0 48,290
Data Entry Fee - General Sessions Court 0 0 37,338
Courtroom Security Fee 0 0 90
Juvenile Court
Data Entry Fee - Juvenile Court 0 0 3,477
Chancery Court
Data Entry Fee - Chancery Court 0 0 10,216
Other Fines, Forfeitures, and Penalties
Proceeds from Confiscated Property 0 0 32,354
Other Fines, Forfeitures, and Penalties 0 0 10,450
Total Fines, Forfeitures, and Penalties $ 0 $ 0 $ 557,159

Other Employee Benefit Charges/Contributions $ 0 $ 0 $ 780
Work Release Charges for Board 0 0 23,025
Service Charges 0 0 500
Fees
Subdivision Lot Fees 0 0 31,175
Recreation Fees 0 0 31,093
(Continued)
179
Exhibit K-6


Highway Other
Capital Capital

Fees (Cont.)
Copy Fees $ 0 $ 0 $ 870
Library Fees 0 0 14,777
Greenbelt Late Application Fee 0 0 300
Telephone Commissions 0 0 150,516
Vending Machine Collections 0 0 167
Tourism Fees 0 0 13,988
Constitutional Officers' Fees and Commissions 0 0 62,208
Data Processing Fee - Register 0 0 34,582
Data Processing Fee - Sheriff 0 0 10,105
Sexual Offender Registration Fee - Sheriff 0 0 6,450
Data Processing Fee - County Clerk 0 0 8,116
Total Charges for Current Services $ 0 $ 0 $ 388,652

Recurring Items
Investment Income $ 0 $ 0 $ 702,656
Lease/Rentals 0 0 138,603
Sale of Materials and Supplies 0 0 56,673
Commissary Sales 0 0 30,937
Sale of Animals/Livestock 0 0 80,046
Miscellaneous Refunds 0 0 17,349
Nonrecurring Items
Revenue from Joint Ventures 0 0 170,286
Sale of Equipment 0 17,045 38,417
Damages Recovered from Individuals 0 0 710
Contributions and Gifts 0 0 40,247
(Continued)
180
Exhibit K-6


Highway Other
Capital Capital
Other Local Revenues (Cont.)

Other Local Revenues $ 0 $ 0 $ 315,099
Total Other Local Revenues $ 0 $ 17,045 $ 1,591,023
Fees Received From County Officials

Fees In-Lieu-of Salary
County Clerk $ 0 $ 0 $ 935,160
Circuit Court Clerk 0 0 287,901
General Sessions Court Clerk 0 0 642,750
Clerk and Master 0 0 328,385
Juvenile Court Clerk 0 0 85,826
Register 0 0 504,703
Sheriff 0 0 38,705
Trustee 0 0 1,508,187
Total Fees Received From County Officials $ 0 $ 0 $ 4,331,617
State of Tennessee
Juvenile Services Program $ 0 $ 0 $ 9,000
State Reappraisal Grant 0 0 1,950
Public Safety Grants
Law Enforcement Training Programs 0 0 46,800
Health and Welfare Grants
Other Health and Welfare Grants 0 0 622,060
Public Works Grants
Bridge Program 0 0 348,345
State Aid Program 0 0 313,706
(Continued)
181
Exhibit K-6


Highway Other
Capital Capital
State of Tennessee (Cont.)

Income Tax $ 0 $ 0 $ 148,075
Beer Tax 0 0 18,488
Vehicle Certificate of Title Fees 0 0 12,479
Alcoholic Beverage Tax 0 0 135,996
State Revenue Sharing - T.V.A. 0 0 1,218,578
Contracted Prisoner Boarding 0 0 2,165,647
Gasoline and Motor Fuel Tax 0 0 2,400,783
Petroleum Special Tax 0 0 58,414
Registrar's Salary Supplement 0 0 15,164
Other State Grants 0 0 18,504
Other State Revenues 0 0 115,007
Total State of Tennessee $ 0 $ 0 $ 7,648,996
Federal Government
Homeland Security Grants $ 0 $ 0 $ 62,047
Law Enforcement Grants 0 0 110,395
Other Federal through State 0 0 483,250
Asset Forfeiture Funds 0 0 8,331
Tax Credit Bond Rebate 0 0 198,666
Other Direct Federal Revenue 0 0 22,048
Total Federal Government $ 0 $ 0 $ 884,737
(Continued)
182
Exhibit K-6


Highway Other
Capital Capital
Other Governments and Citizens Groups

Other Governments
Paving and Maintenance $ 0 $ 0 $ 28,997
Contributions 0 0 361,410
Citizens Groups
Donations 0 0 19,320
Other
Other 0 0 49,182
Total Other Governments and Citizens Groups $ 0 $ 0 $ 458,909
Total $ 1,032,288 $ 1,019,465 $ 49,318,694
183
Exhibit K-7


General School
Purpose Federal Central
School Projects Cafeteria Total
Local Taxes
Current Property Tax $ 21,517,027 $ 0 $ 0 $ 21,517,027
Trustee's Collections - Prior Year 484,817 0 0 484,817
Trustee's Collections - Bankruptcy 9,688 0 0 9,688
Circuit Clerk/Clerk and Master Collections - Prior Years 357,365 0 0 357,365
Interest and Penalty 101,268 0 0 101,268
Pickup Taxes 109,714 0 0 109,714
Local Option Sales Tax 14,013,708 0 0 14,013,708
Mixed Drink Tax 123,223 0 0 123,223
Interstate Telecommunications Tax 7,432 0 0 7,432
Total Local Taxes $ 36,724,242 $ 0 $ 0 $ 36,724,242

Licenses
Marriage Licenses $ 6,812 $ 0 $ 0 $ 6,812
Total Licenses and Permits $ 6,812 $ 0 $ 0 $ 6,812

Fees
Vending Machine Collections $ 355 $ 0 $ 0 $ 355
Education Charges
Tuition - Regular Day Students 9,938 0 0 9,938
Lunch Payments - Children 0 0 729,772 729,772
(Continued)
184
Exhibit K-7


General School

Education Charges (Cont.)
Lunch Payments - Adults $ 0 $ 0 $ 163,900 $ 163,900
Income from Breakfast 0 0 78,502 78,502
A la Carte Sales 0 0 475,328 475,328
Receipts from Individual Schools 256,746 0 0 256,746
Other Charges for Services 165,996 0 32,237 198,233
Total Charges for Current Services $ 433,035 $ 0 $ 1,479,739 $ 1,912,774

Recurring Items
Investment Income $ 0 $ 0 $ 10,655 $ 10,655
Lease/Rentals 1 0 0 1
Sale of Materials and Supplies 5,198 0 0 5,198
Miscellaneous Refunds 71,534 0 49,248 120,782
Nonrecurring Items
Sale of Equipment 19,995 0 0 19,995
Resale of Materials - T&I House 9,000 0 0 9,000
Damages Recovered from Individuals 4,728 0 0 4,728
Contributions and Gifts 31,764 0 0 31,764
Other Local Revenues 31 0 0 31
Total Other Local Revenues $ 142,251 $ 0 $ 59,903 $ 202,154
(Continued)
185
Exhibit K-7


General School
State of Tennessee
On-behalf Contributions for OPEB $ 539,568 $ 0 $ 0 $ 539,568
State Education Funds
Basic Education Program 50,987,000 0 0 50,987,000
Early Childhood Education 969,732 0 0 969,732
School Food Service 0 0 58,677 58,677
Other State Education Funds 286,111 0 0 286,111
Career Ladder Program 273,249 0 0 273,249
Other State Grants 5,906 0 0 5,906
Total State of Tennessee $ 53,061,566 $ 0 $ 58,677 $ 53,120,243
Federal Government
USDA School Lunch Program $ 0 $ 0 $ 3,564,794 $ 3,564,794
USDA - Commodities 0 0 291,711 291,711
Breakfast 0 0 1,331,233 1,331,233
USDA - Other 0 0 36,871 36,871
Vocational Education - Basic Grants to States 0 173,449 0 173,449
Other Vocational 0 12,883 0 12,883
Title I Grants to Local Education Agencies 0 2,933,627 0 2,933,627
Special Education - Grants to States 94,511 2,385,299 0 2,479,810
Special Education Preschool Grants 0 104,431 0 104,431
English Language Acquisition Grants 0 38,489 0 38,489
Safe and Drug-free Schools - State Grants 116,705 0 0 116,705
Eisenhower Professional Development State Grants 0 388,473 0 388,473
(Continued)
186
Exhibit K-7


General School
Federal Government (Cont.)

ROTC Reimbursement $ 122,667 $ 0 $ 0 $ 122,667
Other Direct Federal Revenue 45,302 0 0 45,302
Total Federal Government $ 379,185 $ 6,036,651 $ 5,224,609 $ 11,640,445
Total $ 90,747,091 $ 6,036,651 $ 6,822,928 $ 103,606,670
187
Exhibit K-8

Schedule of Detailed Expenditures -
General Fund
General Government
County Commission
Board and Committee Members Fees $ 70,360
Social Security 4,362
Employer Medicare 1,020
Legal Notices, Recording, and Court Costs 3,113
Postal Charges 130
Office Supplies 111
Total County Commission $ 79,096
Board of Equalization
Board and Committee Members Fees $ 420
Social Security 26
Employer Medicare 6
Legal Notices, Recording, and Court Costs 87
Total Board of Equalization 539
Other Boards and Committees

Legal Services $ 2,003
Postal Charges 86
Other Supplies and Materials 4,424
Total Other Boards and Committees 7,844
County Mayor/Executive
County Official/Administrative Officer $ 95,147
Assistant(s) 43,459
Clerical Personnel 35,626
Longevity Pay 700
Overtime Pay 7,123
Pensions 8,411
Life Insurance 180
Medical Insurance 19,717
Dental Insurance 693
Disability Insurance 401
Unemployment Compensation 128
Communication 406
Dues and Memberships 2,100
Maintenance Agreements 347
Postal Charges 76
Printing, Stationery, and Forms 511
Travel 692
Office Supplies 1,993
Periodicals 41
In Service/Staff Development 895
Furniture and Fixtures 857
Office Equipment 187
Total County Mayor/Executive 233,637
(Continued)
188
Exhibit K-8


General Government (Cont.)
Personnel Office
Longevity Pay 2,350
Overtime Pay 1,045
Pensions 7,664
Life Insurance 223
Dues and Memberships 867
Postal Charges 318
Travel 112
Other Contracted Services 487
Total Personnel Office $ 227,104
County Attorney
Longevity Pay 350
Pensions 3,592
Life Insurance 60
Consultants 200
Postal Charges 98
Electricity 750
Indirect Cost 4,119
Total County Attorney 104,025
Election Commission
Part-time Personnel 5,111
(Continued)
189
Exhibit K-8


Election Commission (Cont.)
Longevity Pay $ 1,850
Overtime Pay 899
Other Salaries and Wages 208
Election Commission 3,480
Election Workers 34,641
Pensions 6,866
Life Insurance 189
Communication 684
Contracts with Public Carriers 2,000
Data Processing Services 2,900
Maintenance Agreements 11,785
Maintenance and Repair Services - Buildings 3,047
Maintenance and Repair Services - Equipment 12,918
Pest Control 230
Postal Charges 6,055
Printing, Stationery, and Forms 6,704
Rentals 850
Travel 1,199
Data Processing Supplies 435
Electricity 4,515
Natural Gas 1,961
Office Supplies 977
Total Election Commission $ 301,057
Register of Deeds
Longevity Pay 2,100
Pensions 9,817
Life Insurance 301
Dental Insurance 1,155
(Continued)
190
Exhibit K-8


Register of Deeds (Cont.)
Maintenance Agreements $ 4,741
Postal Charges 465
Data Processing Equipment 11,842
Furniture and Fixtures 3,408
Total Register of Deeds $ 310,034
Development
Assistant(s) 45,045
Secretary(ies) 40,880
Longevity Pay 2,450
Other Salaries and Wages 92,063
Pensions 12,256
Life Insurance 396
Communication 1,142
Consultants 55,800
Maintenance and Repair Services - Vehicles 1,795
Postal Charges 960
Travel 1,224
Gasoline 3,696
Periodicals 405
Other Charges 1,203
Other Equipment 176
Total Development 420,914
County Buildings
Supervisor/Director $ 49,712
Custodial Personnel 79,940
Longevity Pay 5,150
Overtime Pay 3,824
(Continued)
191
Exhibit K-8


County Buildings (Cont.)
Other Salaries and Wages $ 157,588
Pensions 13,051
Life Insurance 471
Communication 9,499
Laundry Service 3,046
Licenses 1,225
Maintenance and Repair Services - Equipment 610
Maintenance and Repair Services - Vehicles 564
Pest Control 2,618
Rentals 431
Disposal Fees 6,508
Custodial Supplies 10,978
Diesel Fuel 118
Electricity 140,560
Gasoline 6,590
Natural Gas 11,614
Boiler Insurance 9,353
Building and Contents Insurance 76,197
Building Improvements 115,720
Total County Buildings $ 883,809
Other General Administration

Audit Services $ 24,287
Consultants 300
Travel 211
Other Contracted Services 5,687
Gasoline 1,275
Indirect Cost 5,000
Judgments 21,093
Liability Insurance 179,722
Vehicle and Equipment Insurance 78,739
Workers' Compensation Insurance 448,404
Other Charges 6,795
Total Other General Administration 885,020
(Continued)
192
Exhibit K-8


Preservation of Records
Assistant(s) 48,291
Longevity Pay 1,150
Pensions 4,781
Life Insurance 160
Communication 485
Janitorial Services 1,625
Postal Charges 175
Travel 403
Custodial Supplies 288
Library Books/Media 2,000
Periodicals 141
Office Equipment 1,756
Total Preservation of Records $ 163,137
Finance
Accounting and Budgeting
Assistant(s) 50,921
Accountants/Bookkeepers 92,225
Longevity Pay 3,250
Overtime Pay 590
Pensions 15,712
Life Insurance 417
Communication 480
(Continued)
193
Exhibit K-8


Finance (Cont.)
Accounting and Budgeting (Cont.)
Postal Charges $ 3,158
Travel 83
Total Accounting and Budgeting $ 441,401
Purchasing
Longevity Pay 2,750
Pensions 7,719
Life Insurance 183
Communication 914
Postal Charges 429
Travel 1,276
Office Supplies 833
Total Purchasing 217,037
Property Assessor's Office

Longevity Pay 4,700
In-service Training 1,950
Pensions 12,978
Life Insurance 606
Audit Services 25,676
(Continued)
194
Exhibit K-8


Finance (Cont.)
Property Assessor's Office (Cont.)
Communication $ 714
Maintenance and Repair Services - Office Equipment 300
Travel 1,170
Data Processing Supplies 4,878
Gasoline 3,141
Periodicals 20
Other Charges 52
Total Property Assessor's Office $ 617,838
Reappraisal Program
Clerical Personnel $ 30,894
Temporary Personnel 2,855
Longevity Pay 1,550
Pensions 4,583
Life Insurance 180
Communication 10
Postal Charges 171
Travel 582
Gasoline 897
Office Supplies 15
Other Charges 28
Other Equipment 103
Total Reappraisal Program 148,271
(Continued)
195
Exhibit K-8


Finance (Cont.)
County Trustee's Office
Longevity Pay 1,350
Pensions 9,580
Life Insurance 285
Travel 1,524
Total County Trustee's Office $ 314,184
County Clerk's Office

Longevity Pay 8,000
Overtime Pay 245
Pensions 24,715
Life Insurance 805
Disability Insurance 1,173
Advertising 150
Travel 1,380
Other Supplies and Materials 51
(Continued)
196
Exhibit K-8


Finance (Cont.)
County Clerk's Office (Cont.)
Data Processing Equipment $ 2,466
Total County Clerk's Office $ 764,486
Data Processing
Data Processing Personnel 117,819
Longevity Pay 2,150
Pensions 9,280
Life Insurance 180
Communication 69,610
Travel 339
Office Supplies 22
Total Data Processing 582,044
Circuit Court
Longevity Pay 7,950
Overtime Pay 46
Jury and Witness Expense 34,993
Other Per Diem and Fees 12,275
Pensions 26,429
Life Insurance 1,014
Unemployment Compensation 1,459
(Continued)
197
Exhibit K-8


Administration of Justice (Cont.)
Circuit Court (Cont.)
Maintenance and Repair Services - Office Equipment $ 285
Travel 44
Remittance of Revenue Collected 5,000
Periodicals 518
Other Charges 4,848
Total Circuit Court $ 1,029,644

Judge(s) $ 484,107
Longevity Pay 1,500
Overtime Pay 1,533
Pensions 32,739
Life Insurance 521
Communication 7,538
Licenses 1,200
Pest Control 391
Travel 2,065
Remittance of Revenue Collected 15,000
Electricity 7,118
Periodicals 1,192
Other Charges 463
Total General Sessions Court 985,368
Chancery Court
Longevity Pay 2,850
Overtime Pay 440
(Continued)
198
Exhibit K-8


Administration of Justice (Cont.)
Chancery Court (Cont.)
Pensions 14,008
Life Insurance 419
Accounting Services 275
Travel 427
Periodicals 211
Other Charges 2,249
Total Chancery Court $ 421,347
Victim Assistance Programs

Contributions $ 59,220
Total Victim Assistance Programs 59,220
Public Safety
Sheriff's Department
Deputy(ies) 2,090,924
Investigator(s) 536,161
Captain(s) 146,620
Lieutenant(s) 230,931
Sergeant(s) 551,999
Dispatchers/Radio Operators 228,290
Longevity Pay 49,250
Overtime Pay 160,169
Pensions 192,909
(Continued)
199
Exhibit K-8


Public Safety (Cont.)
Sheriff's Department (Cont.)
Disability Insurance $ 9,630
Evaluation and Testing 1,400
Postal Charges 293
Travel 10,926
Veterinary Services 717
Animal Food and Supplies 290
Diesel Fuel 209
Drugs and Medical Supplies 4
Gasoline 157,128
Law Enforcement Supplies 30,976
Lubricants 4,834
Periodicals 46
Tires and Tubes 16,417
Uniforms 49,834
Vehicle Parts 58,234
In Service/Staff Development 9,452
Other Charges 1,085
Communication Equipment 9,993
Heating and Air Conditioning Equipment 1,700
Law Enforcement Equipment 29,236
Motor Vehicles 58,229
Total Sheriff's Department $ 6,070,472
Administration of the Sexual Offender Registry

Contracts with Government Agencies $ 2,010
Total Administration of the Sexual Offender Registry 2,010
Jail
Sergeant(s) 214,397
Maintenance Personnel 43,979
(Continued)
200
Exhibit K-8


Jail (Cont.)
Longevity Pay $ 16,250
Overtime Pay 142,872
Other Salaries and Wages 1,744,972
Pensions 96,013
Communication 5,153
Contracts with Government Agencies 428,428
Medical and Dental Services 516,930
Pest Control 2,397
Transportation - Other than Students 6,063
Travel 693
Disposal Fees 7,945
Diesel Fuel 548
Drugs and Medical Supplies 324,968
Electricity 247,854
Food Supplies 337,906
Gasoline 21,719
Law Enforcement Supplies 2,682
Lubricants 852
Natural Gas 40,038
Prisoners Clothing 18,505
Uniforms 11,958
Vehicle Parts 4,747
Other Charges 2,356
Total Jail $ 4,944,107
(Continued)
201
Exhibit K-8


Juvenile Services
Assistant(s) $ 29,864
Probation Officer(s) 29,012
Youth Service Officer(s) 45,555
Part-time Personnel 730
Longevity Pay 1,300
Overtime Pay 1,237
Pensions 4,849
Life Insurance 176
Communication 1,055
Consultants 8,225
Postal Charges 98
Travel 4,880
Drugs and Medical Supplies 138
Instructional Supplies and Materials 8,739
Total Juvenile Services $ 220,133
Civil Defense
Building and Contents Insurance 842
Other Equipment 44,000
Total Civil Defense 305,276
Other Emergency Management

Clerical Personnel $ 67,921
Longevity Pay 350
Pensions 3,154
Life Insurance 120
Employer Medicare 980
Communication 6,935
Consultants 1,000
(Continued)
202
Exhibit K-8


Other Emergency Management (Cont.)
Dues and Memberships $ 470
Licenses 5,000
Postal Charges 51
Travel 1,894
Diesel Fuel 821
Electricity 12,872
Gasoline 6,404
Small Tools 1,612
Uniforms 2,068
Vehicle Parts 259
Other Charges 63,486
Total Other Emergency Management $ 471,424
Public Safety Grants Program

Law Enforcement Supplies $ 1,024
Uniforms 8,579
Total Public Safety Grants Program 35,676
Public Health and Welfare

Local Health Center
Medical Personnel $ 344,740
Longevity Pay 4,300
Overtime Pay 6
Pensions 20,894
Life Insurance 864
Communication 9,736
(Continued)
203
Exhibit K-8


Public Health and Welfare (Cont.)
Local Health Center (Cont.)
Dues and Memberships $ 400
Licenses 30
Pest Control 561
Travel 9,619
Electricity 42,090
Natural Gas 7,654
Office Supplies 284
Periodicals 141
Liability Insurance 164
Total Local Health Center $ 817,366
Rabies and Animal Control

Longevity Pay 2,250
Overtime Pay 26
Pensions 10,245
Life Insurance 517
Advertising 335
Licenses 680
Medical and Dental Services 133
Travel 595
Veterinary Services 32,467
Disposal Fees 2,993
Electricity 29,501
(Continued)
204
Exhibit K-8


Public Health and Welfare (Cont.)
Rabies and Animal Control (Cont.)
Gasoline $ 6,148
Natural Gas 6,527
Uniforms 274
Building and Contents Insurance 421
Refunds 1,200
Total Rabies and Animal Control $ 560,516
Appropriation to State
Total Appropriation to State 87,375
Other Public Health and Welfare

Other Contracted Services $ 492,387
Total Other Public Health and Welfare 492,387

Senior Citizens Assistance
Total Senior Citizens Assistance 34,000
Libraries
Librarians 216,202
Longevity Pay 4,550
Pensions 12,409
Life Insurance 444
Communication 3,324
Licenses 283
Pest Control 646
Postal Charges 659
Travel 744
(Continued)
205
Exhibit K-8


Social, Cultural, and Recreational Services (Cont.)
Libraries (Cont.)
Other Contracted Services $ 8,207
Electricity 25,732
Natural Gas 2,751
Periodicals 6,354
Total Libraries $ 617,442
Parks and Fair Boards

Assistant(s) 77,672
Laborers 161,684
Longevity Pay 4,400
Overtime Pay 1,880
Pensions 14,935
Life Insurance 515
Communication 1,778
Pest Control 2,026
Postal Charges 122
Rentals 1,364
Travel 487
Diesel Fuel 3,216
Electricity 62,568
Fertilizer, Lime, and Seed 9,165
Gasoline 10,098
Lubricants 600
Natural Gas 5,196
(Continued)
206
Exhibit K-8


Social, Cultural, and Recreational Services (Cont.)
Parks and Fair Boards (Cont.)
Office Supplies $ 1,245
Uniforms 490
Building Improvements 4,700
Site Development 2,479
Other Capital Outlay 31,796
Total Parks and Fair Boards $ 694,728
Agriculture and Natural Resources

Agricultural Extension Service
Board and Committee Members Fees $ 325
Social Security 20
Employer Medicare 5
Contracts with Government Agencies 97,114
Postal Charges 228
Total Agricultural Extension Service 100,032
Forest Service
Total Forest Service 2,000
Soil Conservation
Pensions 1,390
Life Insurance 46
Total Soil Conservation 40,895
Other Operations
Tourism
Longevity Pay 900
Pensions 5,115
Life Insurance 180
(Continued)
207
Exhibit K-8


Other Operations (Cont.)
Tourism (Cont.)
Dental Insurance $ 462
Advertising 121,717
Communication 301
Postal Charges 771
Rentals 300
Travel 3,592
Electricity 2,190
Gasoline 208
Total Tourism $ 358,154
Industrial Development
Electricity 1,128
Total Industrial Development 226,128
Other Economic and Community Development

Other Contracted Services $ 480
Other Charges 41
Total Other Economic and Community Development 521
Airport
Total Airport 40,000
Veterans' Services
Longevity Pay 1,000
Pensions 2,959
Life Insurance 91
(Continued)
208
Exhibit K-8


Other Operations (Cont.)
Veterans' Services (Cont.)
Unemployment Compensation $ 136
Postal Charges 666
Office Supplies 666
Periodicals 399
Total Veterans' Services $ 87,914
Contributions to Other Agencies

Total Contributions to Other Agencies 61,375
Employee Benefits
Dental Insurance $ 15,091
Medical and Dental Services 24,342
Total Employee Benefits 45,216
Payments to Cities
Total Payments to Cities 250,000
Miscellaneous
Medical and Dental Services $ 158,990
Trustee's Commission 298,904
Tax Relief Program 139,313
Total Miscellaneous 647,233
Capital Projects
Public Safety Projects
Other Contracted Services $ 663
Total Public Safety Projects 663
Total General Fund $ 26,410,099
Drug Control Fund

Public Safety
Drug Enforcement
Social Security $ 84
Life Insurance 2
Medical Insurance 173
Dental Insurance 6
(Continued)
209
Exhibit K-8

Drug Control Fund (Cont.)

Drug Enforcement (Cont.)
Communication $ 5,008
Data Processing Services 540
Confidential Drug Enforcement Payments 14,000
Pest Control 357
Travel 3,520
Electricity 2,735
Gasoline 11,875
Law Enforcement Supplies 551
Lubricants 326
Uniforms 1,375
Vehicle Parts 6,590
Refunds 77
Other Charges 7,773
Other Construction 11,450
Total Drug Enforcement $ 128,133
Total Drug Control Fund $ 128,133
Adequate Facilities/ Development Tax Fund

Capital Projects
General Administration Projects
Building Construction $ 158,738
Other Construction 37,261
Total General Administration Projects $ 195,999
Public Safety Projects

Building Construction $ 29
Total Public Safety Projects 46,051
Total Adequate Facilities/ Development Tax Fund 242,050
Constitutional Officers - Fees Fund

Finance
County Clerk's Office
Constitutional Officers' Operating Expenses $ 5,441
Total County Clerk's Office $ 5,441
(Continued)
210
Exhibit K-8

Constitutional Officers - Fees Fund (Cont.)

Chancery Court
Special Commissioner Fees/Special Master Fees $ 4,680
Total Chancery Court $ 4,680
Total Constitutional Officers - Fees Fund $ 10,121
Highway/Public Works Fund

Highways
Administration
Purchasing Personnel 38,042
Longevity Pay 1,450
Pensions 8,263
Life Insurance 159
Postal Charges 322
Travel 950
Total Administration $ 230,065
Highway and Bridge Maintenance

Foremen $ 68,770
Mechanic(s) 237,390
Equipment Operators - Heavy 312,420
Equipment Operators - Light 327,437
Truck Drivers 285,538
Laborers 66,477
Guards 60,490
Overtime Pay 29,624
Pensions 70,119
(Continued)
211
Exhibit K-8

Highway/Public Works Fund (Cont.)

Highways (Cont.)
Highway and Bridge Maintenance (Cont.)
Unemployment Compensation $ 3,597
Advertising 104
Rentals 278
Travel 279
Asphalt 521,962
Concrete 30,472
Crushed Stone 638,024
Other Road Materials 11,700
Pipe 40,322
Road Signs 26,966
Salt 18,900
Wood Products 2,379
Total Highway and Bridge Maintenance $ 3,319,011
Operation and Maintenance of Equipment

Communication $ 5,485
Freight Expenses 330
Diesel Fuel 191,339
Equipment and Machinery Parts 163,856
Garage Supplies 9,434
Gasoline 47,193
Lubricants 28,230
Road Signs 140
Small Tools 23,954
Total Operation and Maintenance of Equipment 695,664
Other Charges
Laundry Service $ 13,182
Pest Control 459
Electricity 11,565
Natural Gas 1,706
Uniforms 149
Other Charges 3,238
Total Other Charges 384,402
(Continued)
212
Exhibit K-8

Highway/Public Works Fund (Cont.)

Highways (Cont.)
Capital Outlay
Bridge Construction $ 329,792
Highway Construction 314,477
Highway Equipment 267,895
Total Capital Outlay $ 953,876
Capital Projects
Highway and Street Capital Projects
Other Capital Outlay $ 2,008,403
Total Highway and Street Capital Projects 2,008,403
Total Highway/Public Works Fund $ 7,591,421

Principal on Debt
General Government
Principal on Bonds $ 1,052,376
Principal on Notes 1,301,651
Total General Government $ 2,354,027
Education
Principal on Bonds $ 3,537,624
Principal on Notes 928,349
Principal on Other Loans 275,052
Total Education 4,741,025
Interest on Debt
General Government
Interest on Bonds $ 519,328
Interest on Notes 106,467
Total General Government 625,795
Education
Interest on Bonds $ 2,776,576
Interest on Notes 75,933
Interest on Other Loans 213,700
Total Education 3,066,209
Other Debt Service

General Government
Bank Charges $ 1,955
Underwriter's Discount 7,058
Other Debt Issuance Charges 13,985
Total General Government 211,497
(Continued)
213
Exhibit K-8

General Debt Service Fund (Cont.)

Other Debt Service (Cont.)
Education
Underwriter's Discount $ 43,354
Other Debt Issuance Charges 85,905
Other Debt Service 1,641,656
Total Education $ 1,770,915
Total General Debt Service Fund $ 12,769,468
General Capital Projects Fund

Capital Projects
General Administration Projects
Building Improvements $ 65,513
Heating and Air Conditioning Equipment 322,633
Total General Administration Projects $ 402,362
Total General Capital Projects Fund 402,362
Highway Capital Projects Fund

Other Operations
Miscellaneous
Trustee's Commission $ 10,317
Total Miscellaneous $ 10,317
Capital Projects
Asphalt $ 452,062
Crushed Stone 439,227
Other Road Materials 12,739
Total Highway and Street Capital Projects 1,295,938
Total Highway Capital Projects Fund 1,306,255

Public Safety
Sheriff's Department
Motor Vehicles $ 274,400
Total Sheriff's Department $ 274,400

Libraries
Communication Equipment $ 14,731
Total Libraries 14,731
(Continued)
214
Exhibit K-8

Other Capital Projects Fund (Cont.)

Other Operations
Other Charges
Other Charges $ 991
Total Other Charges $ 991
Miscellaneous
Trustee's Commission $ 19,870
Total Miscellaneous 19,870
Capital Projects
Other Charges $ 106,950
Total Highway and Street Capital Projects 106,950
Capital Projects - Donated

Capital Projects Donated to School Department
Motor Vehicles $ 1,081,213
Total Capital Projects Donated to School Department 1,081,213
Total Other Capital Projects Fund $ 1,498,155
Total Governmental Funds - Primary Government $ 50,358,064
215
Exhibit K-9

General Purpose School Fund

Instruction
Regular Instruction Program
Teachers $ 28,217,026
Career Ladder Program 149,876
Career Ladder Extended Contracts 921
Homebound Teachers 54,365
Salary Supplements 656,202
Educational Assistants 734,296
Educational Incentive - Other County Employees 362,954
Certified Substitute Teachers 59,400
Non-certified Substitute Teachers 407,498
Social Security 1,831,247
Pensions 2,672,980
Medical Insurance 5,173,710
Textbooks 231,295
Fee Waivers 53,514
Regular Instruction Equipment 246,656
Total Regular Instruction Program $ 42,399,414
Alternative Instruction Program

Teachers $ 345,311
Pensions 34,083
Life Insurance 770
Total Alternative Instruction Program 594,885
Special Education Program

Teachers $ 4,005,676
Homebound Teachers 40,253
Speech Pathologist 540,004
(Continued)
216
Exhibit K-9


Instruction (Cont.)
Special Education Program (Cont.)
Pensions 452,003
Medical Insurance 1,179,544
Contracts with Private Agencies 335,588
Special Education Equipment 34,072
Total Special Education Program $ 8,100,127
Vocational Education Program

Teachers $ 1,927,710
Certified Substitute Teachers 654
Pensions 174,892
Operating Lease Payments 4,500
T&I Construction Materials 12,079
Textbooks 11,182
Other Charges 691
Vocational Instruction Equipment 43,403
Total Vocational Education Program 2,743,177
Other
Teachers 140,584
Pensions 18,821
Life Insurance 288
(Continued)
217
Exhibit K-9


Instruction (Cont.)
Other (Cont.)
Medical Insurance $ 26,161
Communication 469
Operating Lease Payments 916
Office Supplies 371
Regular Instruction Equipment 535
Total Other $ 274,315
Support Services
Attendance
Social Workers 32,056
Pensions 21,030
Life Insurance 835
Communication 2,571
Travel 5,053
Attendance Equipment 1,080
Total Attendance 477,150
Health Services
Pensions 23,605
Life Insurance 864
Communication 3,982
Postal Charges 40
(Continued)
218
Exhibit K-9


Health Services (Cont.)
Travel $ 12,556
Other Charges 750
Health Equipment 2,364
Total Health Services $ 675,646
Other Student Support

Career Ladder Program $ 9,000
Guidance Personnel 1,436,374
Pensions 131,923
Evaluation and Testing 20,829
Other Equipment 623
Total Other Student Support 2,034,450

Career Ladder Extended Contracts 2,600
Librarians 1,042,049
Pensions 144,785
Postal Charges 617
Travel 44,655
Periodicals 51,564
(Continued)
219
Exhibit K-9


Regular Instruction Program (Cont.)
In Service/Staff Development $ 171,146
Alternative Instruction Program

Guidance Personnel 29,760
Pensions 8,588
Life Insurance 216
Communication 2,006
Travel 528
Other Equipment 518
Total Alternative Instruction Program 166,696

Psychological Personnel 341,666
Assessment Personnel 163,093
Pensions 58,884
Life Insurance 942
Communication 4,407
Postal Charges 340
Travel 28,983
Other Charges 1,414
Total Special Education Program 1,016,988
(Continued)
220
Exhibit K-9


Pensions 8,722
Life Insurance 108
Communication 556
Postal Charges 195
Travel 11,108
Other Charges 1,044
Total Vocational Education Program $ 156,652
Other Programs
On-behalf Payments to OPEB $ 539,568
Total Other Programs 539,568
Board of Education
Secretary to Board $ 3,580
Board and Committee Members Fees 14,525
Pensions 165
Other Fringe Benefits 1,119,663
Audit Services 20,000
Legal Services 56,057
Postal Charges 1
Travel 4,410
Other Charges 2,861
Total Board of Education 2,623,589
Director of Schools
(Continued)
221
Exhibit K-9


Director of Schools (Cont.)
Social Security $ 16,315
Pensions 18,034
Life Insurance 216
Communication 3,028
Postal Charges 129
Travel 10,007
Other Charges 9,477
Administration Equipment 618
Total Director of Schools $ 367,241
Office of the Principal

Principals $ 1,535,890
Career Ladder Extended Contracts 1,300
Assistant Principals 1,996,354
Pensions 375,302
Other Charges 5,406
Total Office of the Principal 6,788,521
Fiscal Services
Pensions 14,396
Life Insurance 572
(Continued)
222
Exhibit K-9


Fiscal Services (Cont.)
Employer Medicare $ 4,531
Communication 506
Travel 2,141
Other Charges 1,411
Administration Equipment 7,065
Total Fiscal Services $ 671,289
Human Services/Personnel
Pensions 7,720
Life Insurance 288
Advertising 1,653
Communication 625
Postal Charges 554
Travel 2,978
Total Human Services/Personnel 287,982
Operation of Plant
Custodial Personnel 238,283
Pensions 20,700
Life Insurance 974
Communication 772
Janitorial Services 2,024,620
Postal Charges 182
(Continued)
223
Exhibit K-9


Operation of Plant (Cont.)
Travel $ 7,243
Disposal Fees 71,032
Electricity 2,120,769
Natural Gas 240,620
Water and Sewer 254,353
Other Charges 5,991
Total Operation of Plant $ 6,010,941
Maintenance of Plant
Secretary(ies) $ 32,204
Maintenance Personnel 743,006
Pensions 35,221
Communication 7,991
Other Charges 5,578
Maintenance Equipment 32,253
Total Maintenance of Plant 1,618,165
Transportation
Bus Drivers 1,612,022
Pensions 77,720
Communication 4,225
Postal Charges 8
Travel 1,247
(Continued)
224
Exhibit K-9


Transportation (Cont.)
Diesel Fuel $ 375,811
Transportation Equipment 164,355
Total Transportation $ 4,209,977
Central and Other

Pensions 25,446
Life Insurance 756
Postal Charges 171
Travel 5,469
Office Supplies 184
Total Central and Other 1,089,626

Community Services
Teachers 44,289
Non-certified Substitute Teachers 693
Pensions 5,642
Travel 878
Total Community Services 135,941
(Continued)
225
Exhibit K-9


Operation of Non-Instructional Services (Cont.)
Early Childhood Education
Teachers $ 547,529
Pensions 60,183
Travel 357
Total Early Childhood Education $ 1,097,112
Capital Outlay
Regular Capital Outlay
Building Improvements $ 2,499,622
Total Regular Capital Outlay 2,499,622
Other Debt Service

Education
Debt Service Contribution to Primary Government $ 359,994
Total Education 359,994
Total General Purpose School Fund $ 89,720,925
School Federal Projects Fund

Instruction
Teachers $ 917,584
Pensions 119,295
Regular Instruction Equipment 126,121
(Continued)
226
Exhibit K-9

School Federal Projects Fund (Cont.)

Instruction (Cont.)
Teachers $ 118,142
Pensions 40,115
Special Education Equipment 4,913
Total Special Education Program $ 1,292,056

Social Security 182
Pensions 140
Life Insurance 6
Dental Insurance 97
Vocational Instruction Equipment 66,266
Total Vocational Education Program 88,911
Support Services
Health Services
Pensions 8,300
Life Insurance 206
Total Health Services 228,271
(Continued)
227
Exhibit K-9


Other Student Support
Pensions 3,500
Travel 15,293
Other Charges 5,588
Total Other Student Support $ 127,474

Pensions 36,859
Life Insurance 546
Travel 2,914
Total Regular Instruction Program 906,632

Psychological Personnel $ 120,522
Assessment Personnel 120,120
Pensions 29,074
Life Insurance 402
Travel 7,107
Total Special Education Program 447,840
(Continued)
228
Exhibit K-9


Social Security 451
Pensions 658
Travel 5,000
Total Vocational Education Program $ 13,550
Transportation
Pensions 12,990
Total Transportation 479,538
Total School Federal Projects Fund $ 5,932,536
Central Cafeteria Fund

Support Services
Board of Education
Workers' Compensation Insurance $ 73,701
Total Board of Education $ 73,701

Food Service
Cafeteria Personnel 981,617
Pensions 65,728
Other Fringe Benefits 949
(Continued)
229
Exhibit K-9

Central Cafeteria Fund (Cont.)

Operation of Non-Instructional Services (Cont.)
Food Service (Cont.)
Travel $ 12,510
Food Preparation Supplies 243,181
Food Supplies 2,801,723
USDA - Commodities 291,711
Food Service Equipment 158,502
Total Food Service $ 6,378,473
Total Central Cafeteria Fund $ 6,452,174
Education Capital Projects Fund

Capital Projects
Education Capital Projects
Other Capital Outlay $ 25,576,386
Total Education Capital Projects $ 25,576,386
Total Education Capital Projects Fund 25,576,386

Capital Outlay
Regular Capital Outlay
Building Improvements $ 1,236,607
Total Regular Capital Outlay $ 1,236,607
Total Other Capital Projects Fund 1,236,607
Total Governmental Funds - Maury County School Department $ 128,918,628
230
Exhibit K-10
Schedule of Detailed Revenues and Expenses
Proprietary Fund
Governmental
Activities -
Internal
Service Fund
Central
Maintenance
Garage
Fund
Revenues
Other General Service Charges $ 1,712,494
Total Charges for Current Services $ 1,712,494

Recurring Items
Sale of Materials and Supplies $ 13,435
Miscellaneous Refunds 2
Recurring Items
Other Local Revenues 97
Total Other Local Revenues $ 13,534
Total Revenues $ 1,726,028
Expenses
General Government
Other General Administration
County Official/Administrative Office $ 69,868
Mechanic(s) 193,338
Longevity Pay 6,100
Overtime Pay 3,066
Life Insurance 412
Communication 565
Maintenance and Repair Services - Building 534
(Continued)
231
Exhibit K-10
Proprietary Fund (Cont.)
Governmental
Activities -
Internal
Service Fund
Central
Maintenance
Garage
Fund
Expenses (Cont.)
Other General Administration (Cont.)
Maintenance and Repair Services - Office Equipment $ 195
Postal Charges 250
Travel 603
Disposal Fees 1,351
Diesel Fuel 443,874
Electricity 20,352
Garage Supplies 1,990
Gasoline 315,659
Lubricants 21,161
Natural Gas 6,170
Office Supplies 558
Depreciation 9,268
Other Charges 8
Total Expenses $ 1,685,303
232
Exhibit K-11

Proprietary Fund
Business-type
Activities -
Enterprise
Fund
Solid
Waste
Disposal Fund
Revenues
Operating Revenues
Other Employee Benefit Charges/Contributions $ 220
Transfer Waste Stations Collection Charge 270
Tipping Fees 1,404,763
Other General Service Charges 344,848
Service Charges 6,383
Total Charges for Current Services $ 1,756,484

Recurring Items
Sale of Recycled Materials $ 155,083
Miscellaneous Refunds 16,026
Nonrecurring Items
Sale of Equipment 62,418
Total Other Local Revenues $ 233,527
Total Operating Revenues $ 1,990,011
Nonoperating Revenues
Local Taxes
Current Property Tax $ 1,819,435
Trustee's Collections - Prior Year 43,025
Trustee's Collections - Bankruptcy 787
Circuit/Clerk and Master Collections - Prior Years 31,633
Interest and Penalty 8,555
Pick-up Taxes 9,286
State of Tennessee
Public Works Grants
Litter Program 51,769
Other State Revenues 67,065
Total Nonoperating Revenues $ 2,031,555
Total Revenues $ 4,021,566
(Continued)
233
Exhibit K-11

Business-type
Activities -
Enterprise
Fund
Solid
Waste
Disposal Fund
Expenses
Operating Expenses
Waste Pickup
Foremen $ 25,207
Life Insurance 60
Contributions 6,000
Total Waste Pickup $ 53,852
Convenience Centers
Equipment Operators $ 186,357
Laborers 383,320
Longevity Pay 3,400
Life Insurance 356
Communication 5,227
Pest Control 1,550
Postal Charges 392
Rentals 3,008
Crushed Stone 352
Diesel Fuel 40,050
Electricity 19,206
(Continued)
234
Exhibit K-11

Business-type
Activities -
Enterprise
Fund
Solid
Waste
Disposal Fund
Expenses (Cont.)
Operating Expenses (Cont.)
Convenience Centers (Cont.)
Equipment and Machinery Parts $ 23,860
Gasoline 2,855
Lubricants 916
Vehicle Parts 159
Depreciation 10,132
Solid Waste Equipment 54,641
Total Convenience Centers $ 926,756
Landfill Operation and Maintenance

Equipment Operators 109,495
Laborers 100,599
Longevity Pay 5,100
Life Insurance 511
Communication 9,041
Licenses 72
Maintenance and Repair Services - Buildings 794
Matching Share 2,700
Pest Control 255
Postal Charges 587
Travel 23
(Continued)
235
Exhibit K-11

Business-type
Activities -
Enterprise
Fund
Solid
Waste
Disposal Fund
Expenses (Cont.)
Operating Expenses (Cont.)
Landfill Operation and Maintenance (Cont.)
Disposal Fees $ 1,431,415
Permits 13,575
Diesel Fuel 32,722
Electricity 18,929
Gasoline 2,516
Lubricants 2,376
Natural Gas 7,361
Vehicle Parts 1,081
Refunds 6,503
Depreciation 269,950
Other Charges 4,390
Total Landfill Operation and Maintenance $ 2,577,924
Total Operating Expenses $ 3,558,532
Total Expenses $ 3,558,532
236
Exhibit K-12
Schedule of Detailed Receipts, Disbursements,
and Changes in Cash Balance - City Agency Fund
Cities -
Sales Tax
Fund
Cash Receipts
Local Option Sales Tax $ 12,927,910
Total Cash Receipts $ 12,927,910
Cash Disbursements
Remittance of Revenues Collected $ 12,798,631
Total Cash Disbursements $ 12,927,910
Excess of Cash Receipts Over

(Under) Cash Disbursements $ 0
Cash Balance, July 1, 2015 0
Cash Balance, June 30, 2016 $ 0
237
SINGLE AUDIT SECTION
238
STATE OF TENNESSEE
DEPARTMENT OF AUDIT
SUITE 1500
PHONE (615) 401-7841
Independent Auditors 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

To the County Mayor and Board of County Commissioners:
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business-type activities, the aggregate discretely
presented component units, each major fund, and the aggregate remaining fund information of
Maury County, Tennessee, as of and for the year ended June 30, 2016, and the related notes to
the financial statements, which collectively comprise Maury Countys basic financial statements,
and have issued our report thereon dated February 8, 2017. Our report includes a reference to
other auditors who audited the financial statements of Maury Regional Hospital (major
proprietary fund) and the discretely presented Maury County Board of Public Utilities Water
System, as described in our report on Maury Countys 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 Maury Countys
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of Maury
Countys internal control. Accordingly, we do not express an opinion on the effectiveness of Maury
Countys 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 were not identified. However, as described in the accompanying
Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control
that we consider to be material weaknesses and significant deficiencies.
239
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. We consider the deficiencies described in the
accompanying Schedule of Findings and Questioned Costs to be material weaknesses: 2016-001,
2016-004, and 2016-005.
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: 2016-002, 2016-003(A), 2016-007(A,
B, D, and E), 2016-008, and 2016-009.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Maury Countys financial statements
are free from material misstatement, we performed tests of its compliance with certain provisions
of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards and which are described in the accompanying Schedule of Findings and Questioned
Costs as items 2016-003(B), 2016-006, and 2016-007(C).
Maury Countys Response to the Findings
Maury Countys responses to the findings identified in our audit are described in the
accompanying Schedule of Findings and Questioned Costs. Maury Countys responses were not
subjected to the auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity's internal control or on compliance. This report is an integral part of an audit performed
in accordance with Government Auditing Standards in considering Maury Countys internal
control and compliance. Accordingly, this communication is not suitable for any other purpose.
Very truly yours,
Justin P. Wilson
February 8, 2017
JPW/yu
240
STATE OF TENNESSEE
DEPARTMENT OF AUDIT
SUITE 1500
PHONE (615) 401-7841
Independent Auditor's Report
Auditors 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 Uniform Guidance

To the County Mayor and Board of County Commissioners:
Report on Compliance for Each Major Federal Program
We have audited Maury Countys compliance with the types of compliance

requirements described in the OMB Compliance Supplement that could have a direct and
material effect on each of Maury Countys major federal programs for the year ended June
30, 2016. Maury Countys major federal programs are identified in the summary of auditor's
results section of the accompanying Schedule of Findings and Questioned Costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations,

contracts, and grants applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Maury Countys 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
241
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 Maury Countys compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide legal a determination of Maury
Countys compliance.
Opinion on Each Major Federal Program
In our opinion, Maury 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, 2016.
Report on Internal Control Over Compliance
Management of Maury 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 Maury Countys 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 Maury Countys 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.
242
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 business-type
activities, the aggregate discretely presented component units, each major fund, and the
aggregate remaining fund information of Maury County, Tennessee, as of and for the year
ended June 30, 2016, and the related notes to the financial statements, which collectively
comprise Maury Countys basic financial statements. We issued our report thereon dated
February 8, 2017, which contained unmodified opinions on those financial statements. Our
audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the basic financial statements. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required
by the Uniform Guidance and is not a required part of the basic financial statements. Such
information is the responsibility of management and was derived from and relates directly
to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the Schedule of Expenditures of
Federal Awards is fairly stated in all material respects in relation to the basic financial
statements as a whole.
Very truly yours,
Justin P. Wilson
February 8, 2017
JPW/yu
243
Schedule of Expenditures of Federal Awards and State Grants (1) (2)
Pass-through
Federal Entity
Federal/Pass-through Agency/State CFDA Identifying
Grantor Program Title Number Number Expenditures
U.S. Department of Agriculture:

Passed-through State Department of Agriculture:
National School Lunch Program (Commodities - Noncash Assistance) 10.555 (3) $ 291,711 (4)
Passed-through State Department of Education:
Child Nutrition Cluster:
School Breakfast Program 10.553 (3) 1,331,233
National School Lunch Program 10.555 (3) 3,564,794 (4)
Summer Food Service Program for Children 10.559 (3) 36,871
Total U.S. Department of Agriculture $ 5,224,609
U.S. Department of Housing and Urban Development:

Passed-through State Department of Economic and Community Development:
Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 (3) $ 479,250
Total U.S. Department of Housing and Urban Development $ 479,250
U.S. Department of Justice:

Direct Programs:
Bulletproof Vest Partnership Program 16.607 N/A $ 4,289
Equitable Sharing Program 16.922 N/A 8,331
Passed-through State Commission on Children and Youth:
Juvenile Justice and Delinquency Prevention - Allocation to States 16.540 (3) 4,000
Passed-through City of Columbia:
Edward Byrne Memorial Justice Assistance Grant Program 16.738 (3) 7,101
Total U.S. Department of Justice $ 23,721
U.S. Department of Transportation:

Passed-through State Department of Transportation:
Alcohol Open Container Requirements 20.607 (3) $ 47,749
Passed-through State Department of Military:
Interagency Hazardous Materials Public Sector Training and Planning Grants 20.703 34101-18614 7,200
Total U.S. Department of Transportation $ 54,949
U.S. Department of Education:

Direct Program:
Fund for the Improvement of Education 84.215 N/A $ 45,302
Passed-through State Department of Education:
Title I Grants to Local Educational Agencies 84.010 (3) 2,934,302
Special Education Cluster:
Special Education - Grants to States 84.027 (3) 2,479,810
Special Education - Preschool Grants 84.173 (3) 104,431
Career and Technical Education - Basis Grants to States 84.048 N/A 188,007
Twenty-first Century Community Learning Centers 84.287 N/A 116,705
English Language Acquisition Grants 84.365 N/A 38,489
Supporting Effective Instruction State Grant 84.367 N/A 388,473
Total U.S. Department of Education $ 6,295,519
(Continued)
244
Schedule of Expenditures of Federal Awards and State Grants (1) (2) (Cont.)
Pass-through
Federal Entity
Federal/Pass-through Agency/State CFDA Identifying
Grantor Program Title Number Number Expenditures
U.S. Department of Health and Human Services:

Passed-through State Department of Human Services:
Child Support Enforcement 93.563 (3) $ 48,345
Total U.S. Department of Health and Human Services $ 48,345
U.S. Department of Homeland Security:

Passed-through State Department of Military:
Emergency Management Performance Grants 97.042 34101-16616 $ 44,350
Homeland Security Grant Program 97.067 34101-23315 17,697
Total U.S. Department of Homeland Security $ 62,047
Total Expenditures of Federal Awards $ 12,188,440
Contract
State Grants Number
State Reappraisal Program - Comptroller of the Treasury N/A (3) $ 1,950
Juvenile Justice State Supplement - State Commission on Children
and Youth N/A (3) 9,000
Coordinated School Health Initiative - State Department of Education N/A (3) 100,000
Early Childhood Education - State Department of Education N/A (3) 969,732
Safe Schools - State Department of Education N/A (3) 45,100
Family Resource Center - State Department of Education N/A (3) 88,835
Tennessee Arts Commission Grant - State Department of Education N/A (3) 5,906
Health Department Program - State Department of Health N/A (3) 622,060
Litter Program - State Department of Transportation N/A (3) 51,769
Archives Development Grant - Tennessee Department of State, State
Library and Archives N/A (3) 2,974
Local Parks and Recreation Funds Grant - State Department of
Environment and Conservation N/A (3) 15,530
Total State Grants $ 1,912,856
CFDA - Catalog of Federal Domestic Assistance

N/A - Not Applicable
(1) Presented in conformity with generally accepted accounting principles using the modified accrual basis of accounting.
(2) Maury County elected not to use the 10% de minimus cost rate permitted in the Uniform Guidance.
(3) Information not available.
(4) Total for CFDA No. 10.555 is $3,856,505.
SUBRECIPIENTS Federal Amount

CFDA Provided to
Program Title Number Subrecipient Subrecipient
Community Development Block Grant 14.228 $ 479,250 City of Mt. Pleasant
245
Summary Schedule of Prior-year Findings
Government Auditing Standards require auditors to report the status of uncorrected findings
from prior audits. In addition, OMBs Uniform Guidance requires auditees to report the
status of all prior-year findings whether corrected or uncorrected. Presented below are
findings along with their current status from the Annual Financial Report for Maury County,
Tennessee, for the year ended June 30, 2016.
Prior-year Financial Statement Findings
Fiscal Page Finding CFDA

Year Number Number Title of Finding Number Current Status
2015 237 2015-001 The receipting software used by the N/A Corrected
Office of Zoning and Building
Inspections did not have adequate
2015 238 2015-002 The Office of Director of Accounts and N/A Not Corrected - See
Budgets required material audit Explanation on Corrective
adjustments for proper financial Action Plan
statement presentation
Budgets had weaknesses in posting Explanation on Corrective
financial transactions Action Plan
Budgets had deficiencies in budget Explanation on Corrective
operations Action Plan
2015 242 2015-005 The Office of Director of Schools N/A Not Corrected - See
required material audit adjustments for Explanation on Corrective
proper financial statement presentation Action Plan
2015 242 2015-006 The Office of Director of Schools actual N/A Corrected
beginning fund balance of the General
Purpose School Fund exceeded the
estimated beginning fund balance by a
material amount
2015 243 2015-007 The Office of County Clerk bank N/A Corrected
statements were not reconciled with the
official cash journal
Prior-year Federal Award Findings
There were no prior-year federal award findings to report.
246
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
PART I, SUMMARY OF AUDITOR'S RESULTS
Financial Statements:
1. Our report on the financial statements of Maury 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 in

accordance with 2 CFR 200.516(a)? NO
7. Identification of Major Federal Programs:
* CFDA Numbers: 10.553, 10.555, and 10.559 Nutrition Cluster: School Breakfast Program,
National School Lunch Program, and Summer
Food Service Program for Children
* CFDA Number: 84.010 Title I Grants to Local Educational

Agencies
8. Dollar threshold used to distinguish between Type A and Type B Programs: $750,000
9. Auditee qualified as low-risk auditee? NO
247
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 are paraphrased and presented following each finding and
recommendation. The director of accounts and budgets, director of schools, and the trustee
provided corrective action plans, which are paraphrased and presented separately in the
Managements 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 2016-001 MATERIAL AUDIT ADJUSTMENTS WERE REQUIRED

FOR PROPER FINANCIAL STATEMENT PRESENTATION
(Internal Control Material Weakness Under Government
Auditing Standards)
At June 30, 2016, certain general ledger account balances in the General and Highway/Public
Works funds were not materially correct, and audit adjustments were required for the
financial statements to be materially correct at year-end. Audit adjustments were required
to increase both tax credit bond subsidy revenues and their corresponding expenditures each
by $198,646, and to defer $695,528 of recorded revenues in the General Fund; and to increase
gasoline tax receivables, revenues, and deferred revenues by $438,289, $212,254, and
$226,035, respectively, in the Highway/Public Works Fund. Material audit adjustments were
also required to increase accounts payable and contracts payable, along with their related
expenditures, by $265,370 and $257,929, respectively, in the Highway/Public Works Fund.
Additional material audit adjustments were required in the General and General Debt
Service funds as described in Finding 2016-004 below. Generally accepted accounting
principles require Maury County to have adequate internal controls over the maintenance of
its accounting records. Material audit adjustments were required because the countys
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 and a failure to correct the
finding noted in prior-years audit reports. We presented audit adjustments to management
that they approved and posted to properly present the financial statements in this report.
RECOMMENDATION
Maury County should have appropriate processes in place to ensure its general ledgers are
materially correct.
MANAGEMENTS RESPONSE DIRECTOR OF ACCOUNTS AND BUDGETS
Management agrees with this finding, although the lack of internal control is also due to (in
my opinion) the Purchasing Department not being under the Department of Accounts and
248
Budgets and the use of multiple software to create financial statements. The Purchasing
Department being segregated from the Department of Accounts and Budgets leads to a lack
of internal control by not allowing the Director of Accounts and Budgets to have control over
the proper account codes being recorded on purchase orders, although when discovered the
Director will inform the Purchasing Department of error(s). This also leads to purchase
orders being opened without ensuring that the line item has sufficient funds available for the
additional purchase order. Using multiple accounting software systems makes it more
difficult for information to be obtained easily and to ensure accounts have been posted
properly without having to search in different accounting software.
____________________________
FINDING 2016-002 THE OFFICE HAD WEAKNESSES IN POSTING

FINANCIAL TRANSACTIONS
(Internal Control Significant Deficiency Under Government
Auditing Standards)
During our examination, we noted the office had weaknesses in posting financial
transactions. These deficiencies were the result of a lack of management oversight and a
failure to correct the prior-year audit findings:
A. We observed numerous general journal entries recorded in various funds that

were posted to correct or reverse previous journal entries. Sound business
practices dictate that financial transactions should be accurately posted in
accordance with generally accepted accounting principles. The significant
number of general journal entries indicates weaknesses in internal controls
related to processing and recording financial transactions.
B. We noted numerous entries in various accounts in the General Fund, which

were misclassified or otherwise improperly recorded. Some federal and state
grant revenues were misclassified. Expenditures were overstated in various
funds in an attempt to record fund reserves, year-end schedules of
encumbrances did not agree with the trial balance of various funds, and other
revenues and expenditures were similarly misclassified or improperly
recorded.
C. Numerous receipts and expenditures were posted directly to fund equity

accounts rather than to the proper revenue and expenditure accounts. This
practice has the effect of understating revenues and expenditures and bypasses
the budgetary process.
RECOMMENDATION
Internal controls over the accounting process should be strengthened to correctly identify and
accurately post transactions by nature, account, and fund when the transactions are
initiated.
249
Management agrees with this finding.
____________________________
FINDING 2016-003 THE OFFICE HAD DEFICIENCIES IN BUDGET

OPERATIONS
(A. Internal Control Significant Deficiency Under
Government Auditing Standards; B. Noncompliance Under
Government Auditing Standards)
We noted the following deficiencies in the budget operations of the office:
A. A budget amendment posted to the general ledger of the General Debt Service
Fund was not approved by the county commission; therefore, we did not
recognize this amendment in the financial statements of this report. We
presented audit adjustments to management that they approved and posted to
properly present the budget in the financial statements in this report.
B. Expenditures exceeded appropriations approved by the county commission in

the following major appropriation categories (the legal level of control) of the
General Fund:
Amount
Major Appropriation Category Overspent
Victim's Assistance Programs $ 420

Appropriations to State 19,379
Section 5-9-401, Tennessee Code Annotated, states that All funds from
whatever source derived, including, but not limited to, taxes, county aid funds,
federal funds, and fines, that are to be used in the operation and respective
programs for the various departments, commissions, institutions, boards,
offices, and agencies of county governments shall be appropriated to such use
by the county legislative bodies.
These deficiencies exist due to a lack of management oversight; because management failed
to hold spending to the limits authorized by the county commission, which resulted in
unauthorized expenditures; and managements failure to correct the finding noted in prior-
years audit reports.
RECOMMENDATION
Only budget amendments approved by the county commission should be posted to fund
accounts. Expenditures should be held within appropriations approved by the County
Commission.
250
Management concurs with this finding.

_____________________________
FINDING 2016-004 NUMEROUS RECONCILING DIFFERENCES BETWEEN

THE FUNDS MAINTAINED BY THE DIRECTOR OF
ACCOUNTS AND BUDGETS AND THE TRUSTEE WERE
NOT CORRECTED
Auditing Standards)
The director of accounts and budgets attempted to reconcile the various funds general ledger
cash accounts with county trustee reports monthly; however, these reconciliations identified
the following errors and other items that were not corrected:
A. On December 31, 2015, the trustee incorrectly recorded a receipt of $36,147

into the General Fund that should have been recorded into the General Debt
Service Fund. To correct this error, the Director of Accounts and Budgets
Office wrote a check from the General Fund to the General Debt Service Fund.
The Trustees Office typically voids these interfund checks and transfers the
funds by general journal entry; however, in this instance, the trustee voided
the check but failed to post the journal entry. The result of this error was that
$36,147 of General Debt Service Fund cash was recorded in the General Fund.
B. On February 25, 2016, the trustee incorrectly recorded two receipts totaling
$49,192 into the General Fund, which should have been recorded into the
General Debt Service Fund. To correct this error, the Director of Accounts and
Budgets Office wrote a check from the General Fund to the General Debt
Service Fund. The Trustees Office subsequently voided this check and
attempted to transfer the funds by journal entry; however, the journal entry
was posted in reverse, resulting in a total of $98,384 of General Debt Service
Fund cash being recorded in the General Fund.
C. On May 18, 2016, the Director of Accounts and Budgets Office wrote a check
for $99,546 for a properly approved transfer from the General Fund to the
General Debt Service Fund. The Trustees Office subsequently voided this
check and attempted to transfer the funds by journal entry. The journal entry
was posted in reverse, resulting in a total of $199,092 of General Debt Service
Fund cash being recorded in the General Fund.
Although the above errors were noted on monthly reconciliations in the Director of Accounts
and Budgets Office, it is unclear whether the errors were ever communicated to the Trustees
Office. At year-end, the errors remained uncorrected in the Trustees Office, and the director
of accounts and budgets subsequently posted year-end journal entries to increase the General
Fund cash balance and decrease the General Debt Service Fund cash balance to reconcile
251
with the incorrect balances in the Trustees Office. These journal entries had no supporting
documentation and were subsequently found by auditors to be improper.
The above-noted errors resulted in the General Funds cash balance being overstated by
$333,623 and the General Debt Service Funds cash balance being understated by the same
amount. These errors were the result of a failure to communicate between the Offices of
Director of Accounts and Budgets and the Trustee, and the posting of improper year-end
journal entries. We presented audit adjustments to management that they approved and
posted to properly present the financial statements in this report.
RECOMMENDATION
The director of accounts and budgets and the trustee should work together to ensure cash is
properly recorded in each fund administered by their respective offices. The Trustees Office
should improve its processes to ensure interfund transfers are properly recorded. Reconciling
items should be identified and corrected promptly in the Director of Accounts and Budgets
Office. All journal entries must have a legitimate accounting purpose and be supported by
adequate documentation.
Management agrees with this finding and is including an explanation of events:
June 22, 2016, was the last day of employment for the Senior Accountant with Maury County,
whos duty it was to reconcile the Cash with Trustee account in the accounting software with
the cash per the trustees bank reconciliations. When it came time to reconcile June 2016, I
became aware that there appeared to be a large discrepancy between the two offices. At that
time, I started going down to the Trustees Office to figure out where the differences came
from. It was at the end of preparation for the 2016/2017 budget and nearing the time to close
the 2015/2016 books, I prepared a journal entry to balance between the two offices still
unaware of where the problem was. When the auditors came to my office I made them
aware of the journal entry and problem of not balancing with the Trustees Office.
MANAGEMENTS RESPONSE TRUSTEE
We concur with this finding. Routinely, the trustees bookkeeper handles hundreds
of transactions each month. In the 26 years of my being trustee, it has been the practice for
the budget office to balance with the trustee each month. These items were not reported to
us as incorrect until the auditors advised us.
____________________________
252

Auditing Standards)
At June 30, 2016, certain general ledger account balances in the General Purpose School and
Education Capital Projects funds were not materially correct, and audit adjustments were
required for the financial statements to be materially correct at year-end. Audit adjustments
were required to increase property taxes receivables, the allowance for uncollectible property
taxes, and deferred property taxes by $22,144,591, $549,278, and $21,521,064, respectively,
and to increase other receivables and other deferred revenues by $1,082,475 and $1,255,020,
respectively, in the General Purpose School Fund. Audit adjustments were required to
increase contracts payable and retainage payable by $1,880,914 and $99,786, respectively, in
the Education Capital Projects Fund. Generally accepted accounting principles require the
School Department to have adequate internal controls over the maintenance of its accounting
records. Material audit adjustments were required because the School Departments
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
School Department 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 and
because management failed to correct the finding noted in the prior-year audit report. We
presented audit adjustments to management that they approved and posted to properly
present the financial statements in this report.
RECOMMENDATION
School Department management should have appropriate processes in place to ensure its
general ledgers are materially correct.
MANAGEMENTS RESPONSE DIRECTOR OF SCHOOLS
We concur with this finding and will take the appropriate actions to correct. Maury County
Public Schools (MCPS) believes that the major reason for this finding is related to personnel
in positions with inadequate skill levels. MCPS has identified this weakness and brought in
an outside consulting firm (Vaco) to help with the cleanup of the financial area as well as
consult in the hiring of new personnel. The new Director of Finance will follow clearly
developed and identified processes and procedures to maintain proper internal controls and
management of the financial statements.
____________________________
253
OPERATIONS
(Internal Control Noncompliance Under Government Auditing
Standards)
We noted the following deficiencies in the budget operations of the office:
A. Expenditures exceeded appropriations approved by the county commission in

the following major appropriation categories (the legal level of control) of the
General Purpose School Fund:
Amount
Major Appropriation Category Overspent
Alternative Instruction Program $ 3,552

Other Student Support 4,197
Board of Education 70,977
Operation of Plant 21,638
B. Salaries exceeded line-item appropriations in 15 instances in the General

Purpose School Fund by amounts ranging from $296 to $176,363.
Section 5-9-401, Tennessee Code Annotated, states that All funds from whatever source
derived, including, but not limited to, taxes, county aid funds, federal funds, and fines, that
are to be used in the operation and respective programs for the various departments,
commissions, institutions, boards, offices, and agencies of county governments shall be
appropriated to such use by the county legislative bodies.
The budget resolution approved by the county commission states that the salary, wages, or
enumeration of each official, employee, or agent of the county will not exceed expenditures
that accompany this resolution. Therefore, the salaries that exceeded line-item
appropriations were expenditures not approved by the county commission.
These deficiencies exist because management failed to hold spending to the limits authorized
by the county commission, which resulted in unauthorized expenditures.
RECOMMENDATION
Expenditures should be held within appropriations approved by the county commission.
We concur with this finding and will take the appropriate actions to correct. In the past, the
Director of Finance was the main person that tracked and monitored all spending activity as
it related to budget items. Going forward, each area will be responsible for tracking and
monitoring their individual budgets and expenditures related to them with general oversight
and guidance by the Director of Finance. This will allow those with more intricate knowledge
254
of specific areas to be the first level of responsibility and allow the Director of Finance to work
with those people and manage the overall process.
____________________________
FINDING 2016-007 THE OFFICE HAD DEFICIENCIES IN PAYROLL

PROCEDURES
(A., B., D., and E. Internal Control Significant Deficiency
Under Government Auditing Standards; C. Noncompliance
Under Government Auditing Standards)
The School Department changed software vendors on July 1, 2016; however, School
Department Finance Office personnel lacked the expertise to successfully complete the
software conversion resulting in numerous deficiencies in the payroll process. The School
Departments finance director resigned on December 1, 2016. During the period from
October 1, 2016, through January 31, 2017, several Finance Office employees either retired,
transferred to other positions, or had their employment terminated. On December 1, 2016,
the School Department contracted with Vaco, a national management consulting firm, to
resolve the ongoing payroll accounting issues and to assist in hiring personnel and rebuilding
the depleted Finance Office.
Auditors noted the following deficiencies in payroll procedures:
A. The School Departments Finance Office was routinely late in issuing payroll
checks to School Department employees during this period. Also, numerous
employees reported errors in their paychecks during the period from October
1, 2016, through December 31, 2016. As a result of these deficiencies, the
School Department initiated an electronic notification system so affected
employees could report any noted errors.
B. School Department employees are allowed to choose from a variety of voluntary

payroll deduction benefits (life insurance, dental insurance, etc.), and the
Finance Office deducts the costs of these benefits from the employees
paychecks and is responsible for paying the monthly premiums to the various
vendors. In some instances, the Finance Office failed to pay these premiums
timely, which resulted in several employees receiving notices of cancellation of
their policies.
C. Retirement contributions for November 2016 and December 2016 were not
remitted to the Tennessee Consolidated Retirement System (TCRS) timely as
required by state statute. The School Department advised us that this was the
result of on-going issues with computer software. In November 2016, the
School Department made an unsuccessful attempt to return to a previous
software vendor; however, this attempt created issues with the proper
reporting of wages to TCRS.
D. The above-mentioned payroll software issues have caused the School

Department to issue each of its employees two separate Internal Revenue
255
Service Forms W-2, which must be added together to determine the employees
correct wage and income tax withholding for the 2016 tax year.
E. General ledger payroll liability accounts were not reconciled with payroll
reports and payments in the General Purpose School 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.
These deficiencies can be attributed in part to ineffective management oversight and a lack
of technical skills to maintain accounting records in accordance with generally accepted
accounting principles.
RECOMMENDATION
The School Department should improve its payroll processes to ensure all employees receive
accurate paychecks timely. Voluntary payroll deductions should be paid to the appropriate
vendors timely to avoid disruption or potential cancellation of benefits. Retirement
contributions should be remitted to the Tennessee Consolidated Retirement System timely
as required by state statute. The School Department should follow federal guidelines in
reporting employees federal tax information. General ledger payroll liability accounts should
be reconciled monthly with payroll reports and payments.
We concur with this finding and will take the appropriate actions to correct.
A. Procedures are being developed to ensure that payroll files are transmitted to the
financial institution by the designated time. Thru a series of google doc forms,
communications with employees and a complete audit of employee payroll records,
MCPS is confident that all employees are being paid correctly and timely as of 1/13/17
payroll.
B. All remittance of voluntary deductions and related MCPS benefits are now current.
Individual situations where insurance was cancelled or lapsed are being rectified with
the insurance providers. A process is now in place to remit these deductions on a
timely basis.
C. TCRS reporting was made difficult for the month of November due to payrolls being
run out of two different systems. This has now been corrected and that portion of
TCRS is now current thru December with January in process. The 401k portion of
TCRS is also close to being current with anticipation of completion in the next two
weeks.
D. Due to the fact that MCPS converted software systems in July, employees received
two W2s for tax year 2016. These W-2s were delivered to employees on January 30th,
2017. After W-2s were issued, employees were given an opportunity to meet with
central office payroll to discuss any questions or concerns related to their W-2s. We
had approximately 20 employees sign up for those face-to-face meetings and all
concerns have been resolved.
256
E. Processes and procedures are being developed for the new Director of Finance to
manage the monthly reconciliations of payroll liability accounts.
____________________________
FINDING 2016-008 DEFICIENCIES WERE NOTED IN THE MAINTENANCE

OF CAPITAL ASSETS RECORDS
Auditing Standards)
The School Department maintains its capital assets records in an Excel spreadsheet rather
than using a computer software application. The capital assets records presented to auditors
contained numerous errors such as: beginning asset balances did not correspond to prior
year ending balances, new assets were not being depreciated, and several worksheet formulas
did not properly compute depreciation on existing assets. Auditors advised the School
Departments finance director of these deficiencies and requested the capital assets records
be corrected. Officials subsequently provided revised capital assets records with many of the
same errors as noted before, as well as failing to record current-year assets disposals. Again,
numerous formula errors were noted throughout the capital assets records. These deficiencies
can be attributed in part to ineffective management oversight and a lack of technical skills
to maintain accounting records in accordance with generally accepted accounting principles.
We presented audit adjustments to management, which they approved and posted to properly
present capital assets in the financial statements in this report.
RECOMMENDATION
Management should provide the necessary oversight to ensure capital assets records are
accurately maintained in compliance with generally accepted accounting principles.
We concur with this finding and will take the appropriate actions to correct. Proper training
will be provided to personnel responsible for maintaining capital asset records. In addition,
MCPS is moving the tracking of capital assets from a spreadsheet based system to the
Skyward system. This will enable better tracking, less errors, and more reporting options.
It will also decrease the amount of work to prepare for year-end audit purposes.
____________________________
257
FINDING 2016-009 ACCRUED LEAVE RECORDS WERE NOT MAINTAINED
ADEQUATELY
Auditing Standards)
The School Departments personnel policy permits employees to accumulate earned but
unused vacation and sick leave. The departments finance director provided auditors with
accrued leave records, which auditors tested for accuracy. Auditors tested a sample of
individual accounts and noted numerous deficiencies in these records such as: beginning
leave balances did not agree to prior-year ending balances; employees who had retired,
resigned, or had their employment terminated in the current year had not been removed from
the records; and earned and used amounts for individually tested employees did not agree
with leave slips. Auditors advised the finance director of these problems and requested
corrected leave records. Officials subsequently provided updated records on multiple
occasions, none of which were found to be accurate. Auditors ultimately used alternative
methods to determine the accrued leave balances presented in this report.
The failure to maintain adequate documentation of accumulated leave weakens internal

controls over the payroll process and increases the risks of improper payments and inaccurate
financial statement presentation of accrued leave balances. These deficiencies can be
attributed in part to ineffective management oversight and a lack of technical skills to
maintain accounting records in accordance with generally accepted accounting principles.
RECOMMENDATION
School Department management should maintain a summary of accrued leave for all
employees. These records should accurately reflect the dollar value of the leave at the
beginning of the year, amount earned, amount used, and the value of the leave at year-end.
Individuals who have retired, resigned, or had their employment terminated should be
removed from the records.
We concur with this finding and will take the appropriate actions to correct. Accrued leave
records have historically been maintained by the Finance Department. The records will now
be maintained by the Human Resources Department. Personnel from the HR Department
will keep a spreadsheet beginning July 1 of each fiscal year and ending June 30 of each fiscal
year that will be updated on a monthly basis. The spreadsheet will be updated based on
reports from Eschool/Smartfind Express (current employee absence software). All employees
who resign, retire, or terminate will be taken off the spreadsheet as information is updated
from the monthly personnel report.
258
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, 2016.
259
Managements Corrective Action Plan
We reviewed the financial statement and federal award findings and recommendations with
management to provide an opportunity for their response as required by the auditee
requirements within Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Managements corrective action plans for all financial statement findings
and federal award findings are presented below:
Corrective Action - Financial Statement Findings

Response and Corrective Action Plan Prepared by: Theresa Weber, Director of
Accounts and Budgets,
Person Responsible for Implementing the Corrective Action: Same
Anticipated Completion Date of Corrective Action: June 30, 2017
Repeat Finding: Yes
Reason Why Corrective Action was Not Taken PY:
This is a repeat finding from prior years. I thought I had corrected the finding but evidently
need to take a more intense look at year-end entries, especially receivables and payables.
Planned Corrective Action:
At year end I will evaluate the tax credit bond subsidy revenue and expenditures and calculate
and record any portion that needs to be deferred. I will also estimate two month of gasoline
taxes or any other revenue account that needs a receivable recorded as receivable, revenue
and/or deferred at year end. I will also make sure if estimates are used to increase/decrease
accounts payable and related expenditures at year end that the estimates are sufficient to
cover any invoices that may be paid after year end or any open purchase order are opened
after purchase orders are cut off until year end.
During 2017/2018 I will be searching for a software package that can be used by the
Department of Accounts and Budget, the Purchasing Department and the Human Resource
Department that will satisfy the needs of all three departments and create an easier way of
finding information regarding accounting, purchasing, and human resource information.
Audit adjustments will be posted properly to the funds, and after the adjustments are
recorded, a worksheet will be prepared to ensure the postings have been correctly recorded by
balancing the accounting software to the audited financial statements. I am currently working
on the spreadsheet and should complete it and verify the computer accounts agree with the
audit report soon after the audit report is released.
________________________________________
260
FINDING 2016-002 THE OFFICE HAD WEAKNESSES IN POSTING
FINANCIAL TRANSACTIONS
Repeat Finding: Yes
Reason Why Corrective Action was Not Taken PY: None Given
At the next department head meeting I will discuss the importance of using the correct
account codes and how to check and make sure that they have sufficient funds in their line
items to request a purchase. If I see that errors are not decreasing, I will discuss the matter
with the offending office(s).
Before any Federal and/or State Grant is entered into the accounting systems I will look more
closely at the account codes to ensure that the correct account codes are being used.
It has been explained to me that the proper procedure is to wait until year end to net revenues
and expenditures for restricted and committed accounts. I have not recorded any expenditure
in the restricted or committed accounts thus far this year and will wait until year end.
At year end I will create more spreadsheets to ensure our ending balances in our software
system agree to the individual accounts such as accounts payables agreeing to open purchase
orders at year end and a list of vendors payables at year end.

OPERATIONS
Repeat Finding: Yes
A. I will make sure proper budget amendments are prepared and approved by the commission
before posting entries that required commission approval.
B. When preparing the year-end budget amendments, I will make sure that each budget line
item has sufficient funds to ensure that all remaining accounts payable amounts are included
within the line item.
261
This corrective action has been corrected regarding receiving commission approval before
posting a budget amendment.
The year-end budget amendments will be handled at year end. Although the actual accounts
are different than the prior years finding, I will scrutinize all line items carefully to make
sure this finding is not repeated.
________________________________________
FINDING 2016-004 NUMEROUS RECONCILING DIFFERENCES BETWEEN

THE COUNTY MAYORS AND THE TRUSTEES FUNDS
CASH BALANCES WERE NOT CORRECTED
Accounts and Budgets, and
Steve Konz, Trustee, Maury
County, Tennessee
Persons Responsible for Implementing the Corrective Action: Same
Repeat Finding: No
Reason Why Corrective Action was Not Taken PY: N/A
Director of Accounts and Budgets - Currently I am working on finding out what issues are
still occurring between the Trustees Bank Reconciliation and the Cash with Trustee accounts.
After a discussion with the auditors, I am asking for more computer generated reports from
the Trustees Office to help find the problem(s). I have also implemented a procedure where
at month end our office meets with the Trustees Office to go over any voided checks or
anything out of the ordinary. When informing the Trustees Office of any journal entries they
need to prepare, I am using the terms increase and decrease opposed to debits and credits.
Trustee - The Office of Trustee will strive to balance with the Budget Office each month.
________________________________________

Response and Corrective Action Plan Prepared by: Christopher Marczak,

Director of Schools and Eric
Parliament, Interim CFO,
Persons Responsible for Implementing the Corrective Action: Eric Parliament, Interim
CFO and future Director of
Finance
262
Anticipated Completion Date of Corrective Action: Late spring/early summer
2017
Repeat Finding: Yes
MCPS believes that the major reason for this finding is related to personnel in positions with
inadequate skill levels. MCPS has identified this weakness and brought in an outside
consulting firm (Vaco) to help with the cleanup of the financial area as well as consult in the
hiring of new personnel. The new Director of Finance will follow clearly developed and
identified processes and procedures to maintain proper internal controls and management of
the financial statements.
________________________________________

OPERATIONS

CFO and future Director of
Finance
Anticipated Completion Date of Corrective Action: Late spring/early summer
2017
Repeat Finding: No
In the past, the Director of Finance was the main person that tracked and monitored all
spending activity as it related to budget items. Going forward, each area will be responsible
for tracking and monitoring their individual budgets and expenditures related to them with
general oversight and guidance by the Director of Finance. This will allow those with more
intricate knowledge of specific areas to be the first level of responsibility and allow the Director
of Finance to work with those people and manage the overall process.
________________________________________
FINDING 2016-007 THE OFFICE HAD DEFICIENCIES IN PAYROLL

PROCEDURES

263
CFO and Vaco personnel
Anticipated Completion Date of Corrective Action: Current
Repeat Finding: No
A. Procedures are being developed to ensure that payroll files are transmitted to the
financial institution by the designated time. Thru a series of google doc forms,
communications with employees and a complete audit of employee payroll records,
MCPS is confident that all employees are being paid correctly and timely as of 1/13/17
payroll.
B. All remittance of voluntary deductions and related MCPS benefits are now current.
Individual situations where insurance was cancelled or lapsed are being rectified with
the insurance providers. A process is now in place to remit these deductions on a timely
basis.
C. TCRS reporting was made difficult for the month of November due to payrolls being
run from two different systems. This has now been corrected and that portion of TCRS
is now current thru December with January in process. The 401k portion of TCRS is
also close to being current with anticipation of completion in the next two weeks.
D. Due to the fact that MCPS converted software systems in July, employees received two
W2s for tax year 2016. These W-2s were delivered to employees on January 30th, 2017.
After W-2s were issued, employees were given an opportunity to meet with central
office payroll to discuss any questions or concerns related to their W-2s. We had
approximately 20 employees sign up for those face-to-face meetings and all concerns
have been resolved.
E. Processes and procedures are being developed for the new Director of Finance to
manage the monthly reconciliations of payroll liability accounts.
________________________________________
FINDING 2016-008 DEFICIENCIES WERE NOTED IN THE MAINTENANCE

OF CAPITAL ASSET RECORDS

Person Responsible for Implementing the Corrective Action: Eric Parliament, Interim
CFO
Anticipated Completion Date of Corrective Action: March/April 2017
Repeat Finding: No
264
Proper training will be provided to personnel responsible for maintaining capital asset
records. In addition, MCPS is moving the tracking of capital assets from a spreadsheet based
system to the Skyward system. This will enable better tracking, less errors, and more
reporting options. It will also decrease the amount of work to prepare for year-end audit
purposes.
________________________________________
FINDING 2016-009 ACCRUED LEAVE RECORDS WERE NOT MAINTAINED

ADEQUATELY
Response and Corrective Action Plan Prepared by: Amanda Hargrove, Chief of
Staff, MCPS, Maury County,
Tennessee
Anticipated Completion Date of Corrective Action: March 31, 2017
Repeat Finding: No
Accrued leave records have historically been maintained by the Finance Department. The
records will now be maintained by the Human Resources Department. Personnel from the
HR Department will keep a spreadsheet beginning July 1 of each fiscal year and ending June
30 of each fiscal year that will be updated on a monthly basis. The spreadsheet will be updated
based on reports from Eschool/Smartfind Express (current employee absence software). All
employees who resign, retire, or terminate will be taken off the spreadsheet as information is
updated from the monthly personnel report.
265
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 Maury
County.
MAURY COUNTY SHOULD ADOPT A CENTRAL SYSTEM

OF ACCOUNTING, BUDGETING, AND PURCHASING
Maury 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. The Division of Local Government Audit strongly believes that the
adoption of a central system of accounting, budgeting, and purchasing is a best practice
that would significantly improve accountability and the quality of services provided to the
citizens of Maury County. Therefore, we recommend the adoption of the County Financial
Management System of 1981 or a private act, which would provide for a central system of
accounting, budgeting, and purchasing covering all county departments.
266

FY16 Maury AFR

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ANNUAL FINANCIAL REPORT

MAURY COUNTY, TENNESSEE

DIVISION OF LOCAL GOVERNMENT AUDIT

MAURY COUNTY, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2016

COMPTROLLER OF THE TREASURY

DIVISION OF LOCAL GOVERNMENT AUDIT

JEFF BAILEY, CPA, CGFM, CFE MARK HARVILL, CFE

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

Summary of Audit Findings 6

Maury County Officials 8

Independent Auditor's Report 10-13

Schedule of Contributions Based on Participation in the Teacher

Miscellaneous Schedules: 163

SINGLE AUDIT SECTION 238

Auditor's Report on Internal Control Over Financial Reporting and on

Our report on the financial statements of Maury County is unmodified.

The following are summaries of the audit findings:

OFFICE OF DIRECTOR OF ACCOUNTS AND BUDGETS

OFFICES OF DIRECTOR OF ACCOUNTS AND BUDGETS AND TRUSTEE

Numerous reconciling differences between the funds maintained by the director of

OFFICE OF DIRECTOR OF SCHOOLS

Charlie Norman, County Mayor

Board of County Commissioners

Sonny Shackelford, Chairman Stewart Parker

David Bates, Chairman Jim Morrison

Davis Burkhalter, Chairman Stewart Parker

Independent Auditor's Report

Maury County Mayor and

To the County Mayor and County Commissioners:

Report on the Financial Statements

Management's Responsibility for the Financial Statements

Change in Accounting Principle

Required Supplementary Information

Supplementary and Other Information

Other Reporting Required by Government Auditing Standards

Very truly yours,

Maury County, Tennessee

Cash $ 66,871 $ 51,841,872 $ 51,908,743 $ 3,500 $ 4,868,242

Total Assets $ 144,188,694 $ 288,366,651 $ 432,555,345 $ 202,868,287 $ 32,748,136

Maury County, Tennessee

DEFERRED OUTFLOWS OF RESOURCES

Pension Changes in Experience $ 194,225 $ 284,145 $ 478,370 $ 520,445 $ 1,962

Accounts Payable $ 388,889 $ 14,156,216 $ 14,545,105 $ 76,971 $ 33,151

Maury County, Tennessee

DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 24,566,676 $ 1,821,543 $ 26,388,219 $ 21,040,474 $ 0

Net Investment in Capital Assets $ 74,929,358 $ 94,774,553 $ 169,703,911 $ 136,976,154 $ 18,234,867

Total Net Position $ 14,070,566 $ 212,647,400 $ 226,717,966 $ 156,584,313 $ 26,408,797

Maury County, Tennessee

Net (Expense) Revenue and Changes in Net Position

Total Component Units $ 103,627,153 $ 6,277,414 $ 13,651,021 $ 734,470 $ 0 $ 0 $ 0 $ (83,554,222) $ 589,974

Maury County, Tennessee

Net (Expense) Revenue and Changes in Net Position

Change in Net Position $ 16,142,545 $ 15,984,551 $ 32,127,096 $ 4,571,634 $ 623,090

Maury County, Tennessee

Cash $ 1,946 $ 0 $ 64,925 $ 66,871

Total Assets $ 25,516,742 $ 21,519,468 $ 12,670,558 $ 59,706,768

Accounts Payable $ 113,409 $ 0 $ 275,299 $ 388,708

Maury County, Tennessee

DEFERRED INFLOWS OF RESOURCES

Deferred Current Property Taxes $ 11,713,653 $ 8,919,497 $ 3,933,526 $ 24,566,676

Maury County, Tennessee