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ANNUAL FINANCIAL REPORT

GREENE COUNTY, TENNESSEE

FOR THE YEAR ENDED JUNE 30, 2012

ANNUAL FINANCIAL REPORT


FOR THE YEAR ENDED JUNE 30, 2012

COMPTROLLER OF THE TREASURY JUSTIN P. WILSON

DIVISION OF LOCAL GOVERNMENT AUDIT JAMES R. ARNETTE

Director

BRYAN W. BURKLIN, CPA, CGFM Audit Manager BRAD BURKE, CPA, CIA ROBERT ANDERSON MARK TREECE, CPA, CGFM GREG BRUSH Auditor 4 State Auditors

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

2

Exhibit Page(s)

Audit Highlights 6

INTRODUCTORY SECTION 7

Greene County Officials 8

FINANCIAL SECTION 9

Independent Auditor's Report 10-12BASIC FINANCIAL STATEMENTS: 13

Government-wide Financial Statements:Statement of Net Assets A 14-15Statement of Activities B 16-17

Fund Financial Statements:Governmental Funds:

Balance Sheet C-1 18-19Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Assets C-2 20Statement of Revenues, Expenditures, and Changes in

Fund Balances C-3 21-22Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities C-4 23

Proprietary Fund:Statement of Net Assets D-1 24Statement of Revenues, Expenses, and Changes in Net Assets D-2 25Statement of Cash Flows D-3 26

Fiduciary Funds:Statement of Fiduciary Assets and Liabilities E 27

Notes to the Financial Statements 28-77REQUIRED SUPPLEMENTARY INFORMATION: 78

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

General Fund F-1 79-82Special Purpose Fund F-2 83Highway/Public Works Fund F-3 84

Schedule of Funding Progress – Pension Plan – Primary Governmentand Discretely Presented Greene County School Department F-4 85

Schedule of Funding Progress – Pension Plan – Discretely PresentedGreeneville-Greene County Emergency Communications District F-5 86

GREENE COUNTY, TENNESSEETABLE OF CONTENTS

3

Exhibit Page(s)

Schedule of Funding Progress – Other Postemployment BenefitsPlans – Primary Government and Discretely Presented GreeneCounty School Department F-6 87

Notes to the Required Supplementary Information 88-89COMBINING AND INDIVIDUAL FUND FINANCIAL

STATEMENTS AND SCHEDULES: 90Nonmajor Governmental Funds: 91-92

Combining Balance Sheet G-1 93-96Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances G-2 97-100Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual (Budgetary Basis) and Budget:Solid Waste/Sanitation Fund G-3 101Drug Control Fund G-4 102General Debt Service Fund G-5 103

Major Governmental Fund: 104Schedule of Revenues, Expenditures, and Changes in Fund

Balance – Actual and Budget:Education Debt Service Fund H 105

Fiduciary Funds: 106Combining Statement of Fiduciary Assets and Liabilities I-1 107Combining Statement of Changes in Assets and Liabilities –

All Agency Funds I-2 108-109Component Unit:

Discretely Presented Greene County School Department: 110Statement of Activities J-1 111Balance Sheet – Governmental Funds J-2 112Reconciliation of the Balance Sheet of Governmental Funds

to the Statement of Net Assets J-3 113Statement of Revenues, Expenditures, and Changes in Fund

Balances – Governmental Funds J-4 114Reconciliation of the Statement of Revenues, Expenditures,

and Changes in Fund Balances of Governmental Fundsto the Statement of Activities J-5 115

Combining Balance Sheet – Nonmajor Governmental Funds J-6 116Combining Statement of Revenues, Expenditures, and Changes

in Fund Balances – Nonmajor Governmental Funds J-7 117Schedules of Revenues, Expenditures, and Changes in Fund

Balances – Actual (Budgetary Basis) and Budget:General Purpose School Fund J-8 118-119School Federal Projects Fund J-9 120Central Cafeteria Fund J-10 121

4

Exhibit Page(s)

Miscellaneous Schedules: 122Schedule of Changes in Long-term Notes, Other Loans, and Bonds K-1 123Schedule of Long-term Debt Requirements by Year K-2 124-125Schedule of Transfers – Primary Government and Discretely

Presented Greene County School Department K-3 126Schedule of Salaries and Official Bonds of Principal Officials –

Primary Government and Discretely Presented GreeneCounty School Department K-4 127

Schedule of Detailed Revenues – All Governmental Fund Types K-5 128-139Schedule of Detailed Revenues – All Governmental Fund Types –

Discretely Presented Greene County School Department K-6 140-141Schedule of Detailed Expenditures – All Governmental Fund Types K-7 142-175Schedule of Detailed Expenditures – All Governmental Fund Types –

Discretely Presented Greene County School Department K-8 176-190Schedule of Detailed Receipts, Disbursements, and Changes in

Cash Balances – City Agency Funds K-9 191

SINGLE AUDIT SECTION 192

Auditor's Report on Internal Control Over Financial Reporting andCompliance and Other Matters Based on an Audit of FinancialStatements Performed in Accordance With GovernmentAuditing Standards 193-194

Auditor's Report on Compliance With Requirements That CouldHave a Direct and Material Effect on Each Major Programand Internal Control Over Compliance in Accordance WithOMB Circular A-133 195-197

Schedule of Expenditures of Federal Awards and State Grants 198-199Schedule of Audit Findings Not Corrected 200Schedule of Findings and Questioned Costs 201-206Auditee Reporting Responsibilities 207

5

Audit Highlights Annual Financial Report

Greene County, Tennessee For the Year Ended June 30, 2012

Scope We have audited the basic financial statements of Greene County as of and for the year ended June 30, 2012.

Results Our report on Greene County’s financial statements is unqualified. Our audit resulted in two findings and recommendations, which we have reviewed with Greene County management. The detailed findings, recommendations, and management’s response are included in the Single Audit section of this report.

Findings and Best Practices The following are summaries of the audit findings and best practices. OFFICE OF DIRECTOR OF SCHOOLS ♦ The School Department violated the conflict of interest statute by making purchases

from a business owned by a county commissioner.

OFFICE OF TRUSTEE ♦ Some county funds were not invested in accordance with state statute. BEST PRACTICES The Division of Local Government Audit strongly believes that the items noted below are best practices 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 Greene County. • Greene County should adopt a central system of accounting, budgeting, and purchasing. • Greene County should establish an Audit Committee.

6

INTRODUCTORY SECTION

7

Greene County Officials June 30, 2012 Officials Alan Broyles, County Mayor David Weems, Superintendent of Highways Dr. Vicki Kirk, Director of Schools Dan Walker, Trustee Ralph Bowers, Assessor of Property David Thompson, County Clerk Gail Davis Jeffers, Circuit and General Sessions Courts Clerk Kay Armstrong, Clerk and Master Joy Rader, Register Steven Burns, Sheriff Mary Shelton, Director of Accounts and Budgets Diane Swatzell, Purchasing Agent Board of County Commissioners Alan Broyles, County Mayor, Chairman Phil King Robert Bird Fred Malone Lloyd Bowers Wade McAmis John Carter William Moss David Crum Robin Quillen Margaret Greenway M.C. Rollins, Jr. Brenda Grogan Jimmy Sams Nathan Holt Anthony Sauceman Rennie Hopson Hilton Seay Ted Hensley John Waddle, Jr. Jan Kiker Charles White Board of Education Roger Jones, Chairman Tom Cobble Kathy Austin Kathy Crawford Nathan Brown Rex Hopson

8

FINANCIAL SECTION

9

STATE OF TENNESSEE COMPTROLLER OF THE TREASURY

DEPARTMENT OF AUDIT DIVISION OF LOCAL GOVERNMENT AUDIT

SUITE 1500 JAMES K. POLK STATE OFFICE BUILDING

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

INDEPENDENT AUDITOR’S REPORT

January 31, 2013

Greene County Mayor and Board of County Commissioners Greene County, Tennessee To the County Mayor and Board of County Commissioners: We have audited the accompanying financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Greene County, Tennessee, as of and for the year ended June 30, 2012, which collectively comprise Greene County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of Greene County’s management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Greene County Emergency Communications District, which represent two percent and 1.6 percent, respectively, of the assets and revenues of the aggregate discretely presented component units. Those financial statements were audited by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Greene County Emergency Communications District, is based on the report of other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the auditing 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of other auditors provide a reasonable basis for our opinions.

10

In our opinion, based on our audit and the report of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Greene County, Tennessee, as of June 30, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2013, on our consideration of Greene County’s internal control over financial reporting and 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the budgetary comparison, pension, and other postemployment benefits information on pages 79 through 89 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Greene County’s financial statements as a whole. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the Education Debt Service Fund, combining and individual fund financial statements of the Greene 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

11

financial statements. The combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor governmental funds and the Education Debt Service Fund, combining and individual fund financial statements of the Greene County School Department (a discretely presented component unit), and the 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the 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. Very truly yours,

Justin P. Wilson Comptroller of the Treasury JPW/sb

12

BASIC FINANCIAL STATEMENTS

13

Exhibit A

Greene County, TennesseeStatement of Net AssetsJune 30, 2012

Primary GreeneGovernment County Emergency

Governmental School CommunicationsActivities Department District

ASSETS

Cash and Cash Equivalents $ 174,747 $ 766,717 $ 579,721Equity in Pooled Cash and Investments 16,892,084 4,337,281 0Accounts Receivable 789,018 28,686 34,258Allowance for Uncollectibles (37,489) 0 0Due from Other Governments 1,816,977 1,627,732 26,512Due from Component Units 219,204 0 0Property Taxes Receivable 13,699,904 5,644,960 0Allowance for Uncollectible Property Taxes (445,223) (188,597) 0Prepaid Items 799 0 17,513Deferred Charges - Debt Issuance Cost 378,302 0 0Unamortized Discount and Debt 54,017 0 0Capital Assets Assets Not Depreciated: Land 500,320 886,166 0 Construction in Progress 13,414 251,959 0 Assets Net of Accumulated Depreciation: Buildings and Improvements 9,134,238 27,921,428 0 Other Capital Assets 2,723,357 4,453,786 277,614 Infrastructure 25,353,510 0 0Total Assets $ 71,267,179 $ 45,730,118 $ 935,618

LIABILITIES

Accounts Payable $ 246,893 $ 3,543 $ 23,602Accrued Payroll 398,786 0 9,221Accrued Interest Payable 101,889 0 0Payroll Deductions Payable 181,209 0 0Claims and Judgments Payable 1,569,634 0 0Due to Primary Government 0 219,204 0Due to Cities 52,357 0 0Other Current Liabilities 0 760,517 15,895Deferred Revenue - Current Property Taxes 12,812,415 5,266,400 0Unearned Revenue 13,623 0 0Unamortized Premium on Debt 627,712 0 0Noncurrent Liabilities: Due Within One Year 3,293,338 561,660 0 Due in More than One Year (net of deferred amount on refunding) 36,095,559 3,239,555 0Total Liabilities $ 55,393,415 $ 10,050,879 $ 48,718

(Continued)

Component Units

14

Exhibit A

Greene County, TennesseeStatement of Net Assets (Cont.)

Primary GreeneGovernment County Emergency

Governmental School CommunicationsActivities Department District

NET ASSETS

Invested in Capital Assets, net of related debt $ 22,708,223 $ 0 $ 0Invested in Capital Assets 0 33,513,339 277,614Restricted for: General Government 799 0 0 Administration of Justice 316,773 0 0 Public Safety 225,838 0 0 Public Health and Welfare 72,464 0 0 Highways 2,514,172 0 0 Debt Service 209,099 0 0 Education 0 1,294,662 0 Capital Projects 216,992 333,693 0Unrestricted (10,390,596) 537,545 609,286

Total Net Assets $ 15,873,764 $ 35,679,239 $ 886,900

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

Component Units

15

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34,6

4730

7,94

2O

ther

Def

erre

d Re

venu

es96

7,34

10

202,

478

55,6

3031

,176

1,25

6,62

5To

tal L

iabi

litie

s$

9,00

2,18

8$

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1,30

3$

2,50

0,25

8$

1,88

2,73

1$

1,59

2,44

2$

16,8

98,9

22

(Con

tinue

d)

Non

maj

or

Fund

sM

ajor

Fun

ds

18

Exhi

bit C

-1

Gre

ene

Coun

ty, T

enne

ssee

Bala

nce

Shee

tG

over

nmen

tal F

unds

(Con

t.)

Oth

erTo

tal

Hig

hway

/Ed

ucat

ion

Gov

ern-

Gov

ern-

Spec

ial

Publ

icD

ebt

men

tal

men

tal

Gen

eral

Purp

ose

Wor

ksSe

rvic

eFu

nds

Fund

s

LIAB

ILIT

IES

AND

FU

ND

BAL

ANCE

S (C

ON

T.)

Fund

Bal

ance

sN

onsp

enda

ble:

Prep

aid

Item

s$

799

$0

$0

$0

$0

$79

9Re

stri

cted

:Re

stri

cted

for A

dmin

istr

atio

n of

Jus

tice

104,

812

00

021

1,96

131

6,77

3Re

stri

cted

for P

ublic

Saf

ety

41,3

390

00

184,

499

225,

838

Rest

rict

ed fo

r Pub

lic H

ealth

and

Wel

fare

72,4

640

00

072

,464

Rest

rict

ed fo

r Hig

hway

s/Pu

blic

Wor

ks0

02,

406,

664

00

2,40

6,66

4Re

stri

cted

for D

ebt S

ervi

ce0

00

031

0,98

831

0,98

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stri

cted

for C

apita

l Pro

ject

s0

00

03,

417,

606

3,41

7,60

6Co

mm

itted

:Co

mm

itted

for G

ener

al G

over

nmen

t25

,235

1,29

4,54

30

00

1,31

9,77

8Co

mm

itted

for F

inan

ce15

,631

00

00

15,6

31Co

mm

itted

for A

dmin

istr

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n of

Jus

tice

47,5

140

00

047

,514

Com

mitt

ed fo

r Pub

lic S

afet

y47

4,81

20

00

047

4,81

2Co

mm

itted

for P

ublic

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lth a

nd W

elfa

re24

,663

00

038

8,06

041

2,72

3Co

mm

itted

for A

gric

ultu

re a

nd N

atur

al R

esou

rces

837

00

00

837

Com

mitt

ed fo

r Oth

er O

pera

tions

4,42

00

00

04,

420

Com

mitt

ed fo

r Hig

hway

s/Pu

blic

Wor

ks0

01,

106,

837

00

1,10

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7Co

mm

itted

for D

ebt S

ervi

ce0

00

997,

689

8,89

51,

006,

584

Assi

gned

:As

sign

ed fo

r Gen

eral

Gov

ernm

ent

797,

024

00

00

797,

024

Una

ssig

ned

3,37

3,92

00

00

03,

373,

920

Tota

l Fun

d Ba

lanc

es$

4,98

3,47

0$

1,29

4,54

3$

3,51

3,50

1$

997,

689

$4,

522,

009

$15

,311

,212

Tota

l Lia

bilit

ies

and

Fund

Bal

ance

s$

13,9

85,6

58$

3,21

5,84

6$

6,01

3,75

9$

2,88

0,42

0$

6,11

4,45

1$

32,2

10,1

34

The

note

s to

the

finan

cial

sta

tem

ents

are

an

inte

gral

par

t of t

his

stat

emen

t.

Non

maj

or

Fund

sM

ajor

Fun

ds

19

Exhibit C-2

Greene County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net AssetsJune 30, 2012

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

Total fund balances - balance sheet - governmental funds (Exhibit C-1) $ 15,311,212

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds.

Add: land $ 500,320Add: construction in progress 13,414Add: buildings and improvements net of accumulated depreciation 9,134,238Add: other capital assets net of accumulated depreciation 2,723,357Add: infrastructure net of accumulated depreciation 25,353,510 37,724,839

(2) Internal service funds are used by management to charge the cost of employee health insurance to individual funds. Theassets and liabilities of the internal service fund are included in governmental activities in the statementof net assets. 972,948

(3) Long-term liabilities are not due and payable in the currentperiod and therefore are not reported in the governmental funds.

Less: notes payable $ (124,823)Less: bonds payable (35,205,000)Less: other loans payable (3,750,000)Add: deferred amount on refunding 1,103,239Add: unamortized discount on debt 54,017Add: deferred charges - debt issuance costs 378,302Less: compensated absences payable (891,813)Less: other postemployment benefits liability (520,500)Less: accrued interest on bonds, notes, and other loans payable (101,889)Less: other deferred revenue - premium on debt (627,712) (39,686,179)

(4) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. Add: deferred delinquent property taxes and other deferred June 30, 2012 $ 1,564,567 Less: unearned revenue June 30, 2012 (13,623) 1,550,944

Net assets of governmental activities (Exhibit A) $ 15,873,764


20

Exh

ibit

C-3

Gre

ene

Coun

ty, T

enne

ssee

Stat

emen

t of R

even

ues,

Exp

endi

ture

s,an

d Ch

ange

s in

Fun

d Ba

lanc

esG

over

nmen

tal F

unds

For

the

Year

End

ed J

une

30, 2

012

Oth

er H

ighw

ay /

Edu

catio

nG

over

n-To

tal

Spe

cial

Pub

lic D

ebt

men

tal

Gov

ernm

enta

l G

ener

al P

urpo

se W

orks

Ser

vice

Fund

sFu

nds

Reve

nues

Loca

l Tax

es$

8,92

9,13

0$

347,

358

$2,

506,

711

$2,

496,

983

$3,

103,

037

$17

,383

,219

Lice

nses

and

Per

mits

253,

735

00

00

253,

735

Fine

s, F

orfe

iture

s, a

nd P

enal

ties

646,

152

00

081

,621

727,

773

Char

ges

for

Curr

ent S

ervi

ces

3,32

0,27

10

00

170,

097

3,49

0,36

8O

ther

Loc

al R

even

ues

666,

722

12,5

1350

,545

18,4

1023

2,48

098

0,67

0Fe

es R

ecei

ved

from

Cou

nty

Offi

cial

s2,

767,

630

00

00

2,76

7,63

0St

ate

of T

enne

ssee

2,01

9,92

51,

107,

326

2,21

1,80

10

28,7

835,

367,

835

Fede

ral G

over

nmen

t56

4,60

284

,375

793,

682

084

,375

1,52

7,03

4O

ther

Gov

ernm

ents

and

Citi

zens

Gro

ups

926,

987

035

,236

334,

761

10,1

001,

307,

084

Tota

l Rev

enue

s$

20,0

95,1

54$

1,55

1,57

2$

5,59

7,97

5$

2,85

0,15

4$

3,71

0,49

3$

33,8

05,3

48

Expe

nditu

res

Curr

ent:

Gen

eral

Gov

ernm

ent

$1,

399,

144

$1,

432,

837

$0

$0

$0

$2,

831,

981

Fina

nce

1,82

3,59

30

00

01,

823,

593

Adm

inis

trat

ion

of J

ustic

e1,

675,

414

00

036

,530

1,71

1,94

4Pu

blic

Saf

ety

9,85

4,82

70

00

70,4

559,

925,

282

Publ

ic H

ealth

and

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fare

4,43

7,01

30

00

1,96

5,22

76,

402,

240

Soci

al, C

ultu

ral,

and

Recr

eatio

nal S

ervi

ces

84,5

000

00

084

,500

Agri

cultu

re a

nd N

atur

al R

esou

rces

200,

288

00

00

200,

288

Oth

er O

pera

tions

765,

195

00

00

765,

195

Hig

hway

s0

05,

248,

453

01,

679,

310

6,92

7,76

3D

ebt S

ervi

ce:

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cipa

l on

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t0

00

1,73

3,22

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rest

on

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t0

00

930,

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645,

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ther

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t Ser

vice

00

046

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133,

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179,

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tal P

roje

cts

00

00

1,63

9,05

51,

639,

055

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l Exp

endi

ture

s$

20,2

39,9

74$

1,43

2,83

7$

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8,45

3$

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0,45

6$

7,07

9,13

6$

36,7

10,8

56

Exce

ss (D

efic

ienc

y) o

f Rev

enue

sO

ver

Expe

nditu

res

$(1

44,8

20)

$11

8,73

5$

349,

522

$13

9,69

8$

(3,3

68,6

43)

$(2

,905

,508

)

(Con

tinue

d)

Non

maj

or

Fund

sM

ajor

Fun

ds

21

Exh

ibit

C-3

Gre

ene

Coun

ty, T

enne

ssee

Stat

emen

t of R

even

ues,

Exp

endi

ture

s,an

d Ch

ange

s in

Fun

d Ba

lanc

esG

over

nmen

tal F

unds

(Con

t.)

Oth

er H

ighw

ay /

Edu

catio

nG

over

n-To

tal

Spe

cial

Pub

lic D

ebt

men

tal

Gov

ernm

enta

l G

ener

al P

urpo

se W

orks

Ser

vice

Fund

sFu

nds

Oth

er F

inan

cing

Sou

rces

(Use

s)Re

fund

ing

Deb

t Iss

ued

$0

$0

$0

$0

$6,

665,

000

$6,

665,

000

Prem

ium

s on

Deb

t Iss

ued

00

00

118,

408

118,

408

Insu

ranc

e Re

cove

ry6,

244

6,05

00

00

12,2

94Tr

ansf

ers

In0

086

,914

30,6

380

117,

552

Tran

sfer

s O

ut(8

6,91

4)0

00

(30,

638)

(117

,552

)Pa

ymen

ts to

Ref

unde

d D

ebt E

scro

w A

gent

00

00

(6,6

67,9

48)

(6,6

67,9

48)

Tota

l Oth

er F

inan

cing

Sou

rces

(Use

s)$

(80,

670)

$6,

050

$86

,914

$30

,638

$84

,822

$12

7,75

4

Net

Cha

nge

in F

und

Bala

nces

$(2

25,4

90)

$12

4,78

5$

436,

436

$17

0,33

6$

(3,2

83,8

21)

$(2

,777

,754

)Fu

nd B

alan

ce, J

uly

1, 2

011

5,20

8,96

01,

169,

758

3,07

7,06

582

7,35

37,

805,

830

18,0

88,9

66

Fund

Bal

ance

, Jun

e 30

, 201

2$

4,98

3,47

0$

1,29

4,54

3$

3,51

3,50

1$

997,

689

$4,

522,

009

$15

,311

,212

The

note

s to

the

finan

cial

sta

tem

ents

are

an

inte

gral

par

t of t

his

stat

emen

t.

Non

maj

or

Fund

sM

ajor

Fun

ds

22

Exhibit C-4

Greene County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesFor the Year Ended June 30, 2012

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

Net change in fund balances - total governmental funds (Exhibit C-3) $ (2,777,754)

(1) Governmental funds report capital outlays as expenditures. However,in the statement of activities, the cost of these assets is allocated over their useful lives and reported as depreciation expense. The difference between capital outlays and depreciation is itemized as follows: Add: capital assets purchased in the current period $ 3,745,843 Less: current-year depreciation expense (2,837,290) 908,553

(2) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds.

Add: unearned revenue June 30, 2011 $ 29,304Less: unearned revenue June 30, 2012 (13,623)Add: deferred delinquent property taxes and other deferred June 30, 2012 1,564,567Less: deferred delinquent property taxes and other deferred June 30, 2011 (1,688,844) (108,596)

(3) The issuance of long-term debt (e.g., bonds, notes, other loans) provides current financial resources to governmental funds, while the repaymentof the principal of long-term debt consumes the current financialresources of governmental funds. Neither transaction, however, hasany effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt isfirst issued, whereas these amounts are deferred and amortized in thestatement of activities. This amount is the effect of these differencesin the treatment of long-term debt and related items:

Less: refunding bond proceeds $ (6,665,000)Less: change in premium on debt issuances (59,668)Less: change in unamortized discount on debt (5,916)Add: change in deferred debt issuance costs 23,058Add: principal payments on notes 518,221Add: principal payments on other loans 275,000Add: principal payments on bonds 1,850,000Add: principal amount of other loans refunded 5,975,000Add: change in deferred amount on refunding debt 452,855 2,363,550

(4) Some expenses reported in the statement of activities do not requirethe use of current financial resources and therefore are not reportedas expenditures in the governmental funds. Change in accrued interest payable $ (6,386) Change in other postemployment benefits liability (123,000) Change in compensated absences payable 52,364 (77,022)

(5) Internal service funds are used by management to charge the cost ofemployee health benefits to individual funds. The net revenue (expense) ofcertain activities of the internal service fund is reported with governmentalactivities in the statement of activities. 152,021

Change in net assets of governmental activities (Exhibit B) $ 460,752


23

Exhibit D-1

Greene County, TennesseeStatement of Net AssetsProprietary FundJune 30, 2012

ASSETS

Current Assets: Cash $ 82,340 Equity in Pooled Cash and Investments 918,439 Accounts Receivable 64,796Total Assets $ 1,065,575

LIABILITIES

Current Liabilities: Accounts Payable $ 80,973 Due to Other Funds 11,654Total Liabilities $ 92,627

NET ASSETS

Unrestricted $ 972,948

Total Net Assets $ 972,948


GovernmentalActivities -

InternalService Fund

Employee Insurance -

Health

24

Exhibit D-2

Greene County, TennesseeStatement of Revenues, Expenses, and Changes in Net AssetsProprietary FundFor the Year Ended June 30, 2012

Operating Revenues Charges for Services $ 4,621,581 Insurance Recovery 26,153Total Operating Revenue $ 4,647,734

Operating Expenses Handling Charges and Administrative Costs $ 626,160 Medical Insurance 40,737 Communication 2,248 Contracts with Private Agencies 157,402 Drugs and Medical Supplies 36,566 Other Supplies and Materials 3,853 Medical Claims 3,812,405 Building Improvements 1,247Total Operating Expenses $ 4,680,618Operating Income (Loss) $ (32,884)

Nonoperating Revenues (Expenses) Investment Income $ 41 Miscellaneous Refunds 184,864Total Nonoperating Revenues (Expenses) $ 184,905

Change in Net Assets $ 152,021Net Assets, July 1, 2011 820,927

Net Assets, June 30, 2012 $ 972,948





Health

25

Exhibit D-3

Greene County, TennesseeStatement of Cash FlowsProprietary FundFor the Year Ended June 30, 2012



Cash Flows from Operating Activities Receipts for Self Insurance Premiums $ 4,633,235 Payments to Vendors (201,244) Payments to Fiscal Agents (626,686) Payments to Insurers (40,737) Payments for Claims (3,731,504) Insurance Recovery 26,153Net Cash Provided By (Used In) Operating Activities $ 59,217

Cash Flows from Investing Activities Interest on Investments $ 41Net Cash Provided By (Used In) Investing Activities $ 41

Cash Flows from Noncapital Financing Activities Miscellaneous Refunds $ 120,594Net Cash Provided By (Used In) Noncapital Financing Activities $ 120,594

Increase (Decrease) in Cash $ 179,852Cash, July 1, 2011 820,927

Cash, June 30, 2012 $ 1,000,779

Reconciliation of Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities Operating Income (Loss) $ (32,884) Adjustments to Reconcile Net Operating Income (Loss) to Net Cash Provided By (Used In) Operating Activities: Changes in Assets and Liabilities: (Increase) Decrease in Current Operating Receivables (526) Increase (Decrease) in Accounts Payable 80,973 Increase (Decrease) in Due to Other Funds 11,654

Net Cash Provided By (Used In) Operating Activities $ 59,217



Health

26

Exhibit E

Greene County, TennesseeStatement of Fiduciary Assets and LiabilitiesFiduciary FundsJune 30, 2012

AgencyFunds

ASSETS

Cash $ 2,114,542Equity in Pooled Cash and Investments 49,390Accounts Receivable 3,018Due from Other Governments 1,637,390Property Taxes Receivable 3,141,577Allowance for Uncollectible Property Taxes (94,886)

Total Assets $ 6,851,031

LIABILITIES

Accounts Payable $ 2,163Due to Other Taxing Units 4,684,081Due to Litigants, Heirs, and Others 2,114,781Due to Joint Ventures 50,006

Total Liabilities $ 6,851,031


27

GREENE COUNTY, TENNESSEE NOTES TO THE FINANCIAL STATEMENTS

For the Year Ended June 30, 2012

I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

A. Reporting Entity

Greene County is a public municipal corporation governed by an elected 21-member board. As required by GAAP, these financial statements present Greene County (the primary government) and its component units. The component units discussed below are included in the county's reporting entity because of the significance of their operational or financial relationships with the county.

Discretely Presented Component Units – The following entities meet the criteria for discretely presented component units of the county. They are reported in separate columns in the government-wide financial statements to emphasize that they are legally separate from the county. The Greene County School Department operates the public school system in the county, and the voters of Greene County elect its board. The School Department is fiscally dependent on the county because it may not issue debt without county approval, and its budget and property tax levy are subject to the County Commission’s approval. The School Department’s taxes are levied under the taxing authority of the county and are included as part of the county’s total tax levy. The Greeneville-Greene County Emergency Communications District provides a simplified means of securing emergency services through a uniform emergency number for the residents of Greene County, and the Greene County Commission appoints its governing body. The district is funded primarily through a service charge levied on telephone services. Before the issuance of most debt instruments, the district must obtain the County Commission’s approval. The Greene 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 Greeneville-Greene County Emergency Communications District can be obtained from its administrative office at the following address:

28

Administrative Office:

Greeneville-Greene County Emergency Communications District 111 Union Street Greeneville, TN 37843

B. Government-wide and Fund Financial Statements

The government-wide financial statements (i.e., the Statement of Net Assets 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 the government-wide financial statements. However, the primary government of Greene County does not have any business-type activities to report. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The Greene County School Department component unit only reports governmental activities in the government-wide financial statements. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Greene County issues all debt for the discretely presented Greene County School Department. There were no debt issues contributed by the county to the School Department during the year ended June 30, 2012. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. The internal service fund is reported with the governmental activities in the government-wide financial statements, and the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

29

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary funds financial statements, except for agency funds, which have no measurement focus. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Fund financial statements of Greene 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, liabilities, fund equity, revenues, and expenditures. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental category. Greene County only reports one proprietary fund, an internal service fund. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds. Major individual governmental funds are reported as separate columns in the fund financial statements. All other governmental funds are aggregated into a single column on the fund financial statements. The internal service fund and the fiduciary funds in total are reported in single columns by fund type. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they become both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the county considers revenues, including grants and similar items, to be available if they are collected within 30 days after year-end, and all eligibility requirements imposed by providers have been met. The discretely presented Greene County School Department considers revenues other than grants to be available if they are collected within 30 days after year-end and considers grants and similar revenues to be available if they are collected within 60 days after year-end. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met and the revenues are available. 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 debt service funds for payments to be made early in the following year.

30

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 revenues as soon as all eligibility requirements imposed by the provider have been met. Greene County reports the following major governmental funds:

General Fund – This is the county’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. Special Purpose Fund – This special revenue fund accounts for the financial transactions pertaining to Greene County’s and the Greene County School Department’s workers’ compensation and general liability insurance coverage plans. Local taxes and State Revenue Sharing - TVA funds are the foundational revenues of this fund. Highway/Public Works Fund – This special revenue fund accounts for transactions of the county’s Highway Department. Local and state gasoline/fuel taxes are the foundational revenues of this fund.

Education Debt Service Fund – This fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt issued for the Greene County School Department.

Additionally, Greene County reports the following fund types:

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

Internal Service Fund – The Employee Insurance - Health Fund is used to account for the county’s self-insured health program. Premiums charged to the various county funds and employee payroll deductions are placed in this fund to pay the claims of county employees.

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Agency Funds – These funds account for amounts collected in an agency capacity by the constitutional officers, local sales taxes received by the state to be forwarded to the various cities in Greene County, the city school system’s share of educational revenues, and assets held in a custodial capacity for a joint venture. 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 Greene County School Department reports the following major governmental funds:

General Purpose School Fund – This fund is the primary operating fund for the School Department. It is used to account for general operations of the School Department. School Federal Projects Fund – This special revenue fund is used to account for restricted federal revenues, which must be expended on specific education programs.

Additionally, the Greene County School Department reports the following fund type:

Capital Projects Fund – The Education Capital Projects Fund is used to account for building construction and renovations for the School Department.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided; (2) operating grants and contributions; and (3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. The county has one proprietary fund, an internal service fund, which is used to account for the employees’ health insurance program. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the county’s internal service fund are charges for services. Operating expenses for the internal service fund will include administrative expenses and health insurance costs.

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D. Assets, Liabilities, and Net Assets or Equity

1. Deposits and Investments For purposes of the Statement of Cash Flows, cash includes demand deposits 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 Treasurer’s Investment Pool; bonds of any state or political subdivision rated A or higher by any nationally recognized rating service; nonconvertible debt securities of certain federal government sponsored enterprises; and the county’s own legally issued bonds or notes. The county trustee maintains a cash and internal investment pool that is used by all funds and the discretely presented Greene County School Department. Each fund’s portion of this pool is displayed on the balance sheets or statements of net assets as Equity in Pooled Cash and Investments. Income from these pooled investments is assigned to the various funds based on the approved budgets. Greene County and the School Department have adopted a policy of reporting U.S. Treasury obligations, U.S. agency obligations, and repurchase agreements with maturities of one year or less when purchased on the balance sheet at amortized cost. Certificates of deposit and investments in the State Treasurer’s Investment Pool are reported at cost. The State Treasurer’s Investment Pool is not registered with the Securities and Exchange Commission (SEC) as an investment company, but nevertheless has a policy that it will, and does, operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940. Rule 2a7 allows SEC-registered mutual funds to use amortized cost rather than fair value to report net assets to compute share prices if certain conditions are met. State statutes require the state treasurer to administer the pool under the same terms and conditions, including collateral requirements, as prescribed for other funds invested by the state treasurer. All other investments are reported at fair value.

2. Receivables and Payables

Activity between funds for unremitted current collections outstanding at the end of the fiscal year is referred to as due to/from other funds. All ambulance and property taxes receivable are shown with an allowance for uncollectibles. Ambulance receivables allowance for uncollectibles is based on historical collection data. The allowance for

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uncollectible property taxes is equal to 1.77 percent of total taxes levied. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. 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 deferred revenue 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 with offsetting deferred revenue 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. Claims and judgments payable totaling $1,569,634 are discussed in Note V.A., Risk Management. The $760,517 balance in Other Current Liabilities on the Statement of Net Assets for the School Department represents the remaining balance in the teachers’ insurance clearing account.

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. Prepaids are offset in the nonspendable fund balance account in governmental funds.

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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 column in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of $5,000 or more ($7,500 for like items purchased at the same time) and an estimated useful life of more than three 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, and infrastructure of the primary government and the discretely presented School Department are depreciated using the straight-line method over the following estimated useful lives:

Assets Years

Buildings and Improvements 30 - 40Other Capital Assets 3 - 12Infrastructure 3 - 75

5. Compensated Absences

It is the county’s and the discretely presented School Department’s policy to permit employees to accumulate earned but unused vacation and sick leave benefits. There is no liability for unpaid accumulated sick leave since neither Greene County nor the School Department has policies to pay any amounts when employees separate from service with the government. All vacation pay is accrued when incurred in the government-wide statements for the county and the School Department. 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.

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6. Long-term Obligations

In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities Statement of Net Assets. Debt premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the debt using the straight-line method. Debt issuance costs are reported as deferred charges and amortized over the term of the related debt. In refunding transactions, the difference between the reacquisition price and the net carrying amount of the old debt is netted against the new debt and amortized 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, claims and judgments, other postemployment benefits, and special termination benefits, are recognized to the extent that the liabilities have matured (come due for payment) each period.

7. Net Assets and Fund Equity In the government-wide financial statements and the proprietary fund in the fund financial statements, equity is classified as net assets and displayed in three components: a. Invested in capital assets, net of related debt – 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 assets – Consists of net assets 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.

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c. Unrestricted net assets – All other net assets that do not meet the definition of restricted or invested in capital assets, net of related debt.

As of June 30, 2012, Greene County had $20,549,823 in outstanding debt for capital purposes for the discretely presented Greene County School Department. This debt is a liability of Greene County, but the capital assets acquired are reported in the financial statements of the School Department. Therefore, Greene County has incurred a liability significantly decreasing its unrestricted net assets with no corresponding increase in the county’s capital assets.

It is the county’s policy that restricted amounts would be reduced first followed by unrestricted amounts when expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available. Also, it is the county’s policy that committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of these unrestricted fund balance classifications could be used. In the fund financial statements, governmental funds report fund balance in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in these funds can be spent. These classifications may consist of the following:

Nonspendable Fund Balance – includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted Fund Balance – includes amounts that have constraints placed on the use of the resources that are either (a) externally imposed by creditors, grantors, contributors or laws and regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation.

Committed Fund Balance – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal resolutions of the County Commission, the county’s highest level of decision-making authority and the Board of Education, the School Department’s highest level of decision-making authority, and shall remain binding unless removed in the same manner.

Assigned Fund Balance – includes amounts that are constrained by the county’s intent to be used for specific purposes, but are neither restricted nor committed (excluding stabilization arrangements). The County Commission and the

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Board of Education are authorized bodies to make assignments. Assigned fund balance of $797,024 in the General Fund consists of the amount of fund balance approved for use in the budget for fiscal year ending June 30, 2013. Assigned fund balance of $660,617 in the discretely presented School Department’s General Purpose School Fund consists of $650,161 assigned for encumbrances and $10,456 for other purposes.

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

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 Assets Primary Government Exhibit C-2 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of government funds with the government-wide Statement of Net Assets. Discretely Presented Greene County School Department Exhibit J-3 includes explanations of the nature of individual elements of items required to reconcile the balance sheet of government funds with the government-wide Statement of Net Assets.

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

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governmental funds with the change in net assets of governmental activities reported in the government-wide Statement of Activities.

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

Annual budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) for all governmental funds except the District Attorney General and Constitutional Officers - Fees funds (special revenue funds), which are not budgeted, and the capital projects funds, 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, County Mayor/Executive, County Attorney, and Election Commission 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, 2012, Greene County and the discretely presented School Department reported the following significant encumbrances: Fund Purpose Amount

Primary Government: Major Fund: General Building improvements $ 248,293 Highway/Public Works Highway equipment 510,841 " Bridge construction 234,000 Nonmajor Fund: Highway Capital Projects Asphalt plant materials 137,100

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Fund (Cont.) Purpose Amount

School Department: Major Fund: General Purpose School Instruction equipment $ 271,406 " Building improvements 268,382 Nonmajor Fund: Education Capital Projects Buses 484,416 " School construction 245,924

B. Expenditures Exceeded Appropriations Expenditures exceeded appropriations approved by the County Commission in the following major appropriation categories (the legal level of control) in the following funds.

AmountFund/Major Appropriation Category Overspent

General:Juvenile Court $ 3,531 Other Administration of Justice 725 Juvenile Services 24,079 Tourism 2,286 Industrial Development 2,286 Contributions to Other Agencies 500

General Debt Service:Other Debt Service - General Government 148

Expenditures that exceed appropriations are a violation of state statutes. These expenditures in excess of appropriations were funded by unspent appropriations in other major categories.

C. County Funds Not Invested in Accordance With State Statute

On June 30, 2012, the county trustee had investments of $73,629 in a mutual fund, which is not an authorized investment type permitted by Section 5-8-301, Tennessee Code Annotated (TCA). Also, as detailed in Note IV.A., at June 30, 2012, the trustee held investments in bonds issued by municipal authorities and by Puerto Rico. Municipal authority bonds and territorial bonds are not specified as authorized investments in the aforementioned statute. In addition, six separate investments in bonds with fair values totaling $270,878 had ratings lower than A, four separate investments in bonds with fair values totaling $89,768 had a “withdrawn rating” from Moody’s, and six separate investments in bonds with fair values totaling $190,794 did not have a clearly determinable rating. These investments did not meet criteria established by Section 5-8-301(b), TCA, which requires that

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investments in bonds of any other state or political subdivision thereof be rated A or higher by a nationally recognized rating service. All of these investments were liquidated by the trustee on September 6, 2012.

IV. DETAILED NOTES ON ALL FUNDS

A. Deposits and Investments

Greene County and the Greene 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 assets as Equity in Pooled Cash and Investments. Cash reflected on the balance sheets or statements of net assets represents nonpooled amounts held separately by individual funds.

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

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rating service; and the county’s own legally issued bonds or notes. These investments may not have a maturity greater than two years. The county may make investments with longer maturities if various restrictions set out in state law are followed. Counties are also authorized to make investments in the State Treasurer’s Investment Pool and in repurchase agreements. Repurchase agreements must be approved by the state Comptroller’s Office and executed in accordance with procedures established by the State Funding Board. Securities purchased under a repurchase agreement must be obligations of the U.S. government or obligations guaranteed by the U.S. government or any of its agencies. When repurchase agreements are executed, the purchase of the securities must be priced at least two percent below the fair value of the securities on the day of purchase. Investment Balances. As of June 30, 2012, Greene County had the following investments carried at fair value or cost. See Note III.C. for additional details pertaining to the investments in bonds. All investments are in the county trustee’s investment pool. Separate disclosures concerning pooled investments cannot be made for Greene County and the discretely presented Greene County School Department since both pool their deposits and investments through the county trustee.

Fair Value Ratings Investment Maturities or Cost Moody's S&P

National Financial Services Money Market Portfolio Daily $ 73,629 - -Chicago Illinois Special Transportation Revenue Bonds (1) * 7-1-12 25,000 WR -Chicago Illinois Special Transportation Revenue Bonds (1) * 7-1-12 25,000 WR -New York City New York Industrial Development Agency Civic Facility Revenue Bonds (1) * 7-1-12 30,300 WR -Puerto Rico Highway and Transportation Authority Transportation Revenue Bonds and Revenue Refunding Bonds (2) * 7-1-12 30,000 - BBBPuerto Rico Public Buildings Authority Government Facilities Refunding Bonds (2) * 7-1-12 45,000 Baal -

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Fair Value Ratings Investment (Cont.) Maturities or Cost Moody's S&P

Joint School District No. 2 (Meridian) Ada and Canyon Counties Idaho General Obligation School Bonds * 7-30-12 $ 5,015 Aaa A+California Community College Financing Authority Lease Revenue Bonds (3) * 8-1-12 15,203 - -Firebaugh-Las Deltas California School District General Obligation Bonds * 8-1-12 32,476 - AMassachusetts State Health and Educational Facilities Authority Revenue Bonds * 10-1-12 20,237 - AA-The Commonwealth of Massachusetts General Obligation Bonds * 11-1-12 50,817 - AA+State of Connecticut General Obligation Bonds * 11-15-12 20,330 Aa3 AALuzerne County Pennsylvania General Obligation Bonds (1) * 11-15-12 9,468 WR -Arizona Health Facilities Authority Hospital Revenue Bonds (2) * 12-1-12 25,792 - BBB+State of Connecticut Special Tax Obligation Bonds Transportation Infrastructure Purposes * 12-1-12 20,387 Aa3 AACommunity Consolidated School District Number 21 (Wheeling) Cook County Illinois General Obligation Capital Appreciation School Building Bonds 12-1-12 29,937 Aa3 -El Paso County Colorado Lease Purchase and Sublease Agreement With El Paso County Facilities Corporation Certificates of Participation (Judicial Building Project) Revenue Bonds * 12-1-12 30,526 - AA-

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Fair Value RatingsInvestment (Cont.) Maturities or Cost Moody's S&P

Greene County Ohio Limited Tax General Obligation Bonds * 12-1-12 $ 22,430 Aa2 -Long Island New York Power Authority General Revenue Bonds 12-1-12 51,070 Aa3 AA-Freeport Illinois General Obligation Bonds (2) * 1-1-13 25,638 - BBBMassachusetts State General Obligation Bonds * 1-1-13 35,829 Aa1 AA+Massachusetts State General Obligation Bonds * 1-1-13 10,177 - AA+Massachusetts State General Obligation Bonds * 1-1-13 15,266 - AA+Massachusetts Turnpike Authority Revenue Bonds 1-1-13 25,590 Aaa -Missouri State Environmental Improvement Authority Revenue Bonds (3) * 1-1-13 15,387 - -Newnan Georgia Hospital Authority Revenue Anticipation Certificates * 1-1-13 15,387 AA3 -North Carolina Municipal Power Agency Number 1 Catawba Electric Revenue Bonds (3) 1-1-13 46,149 - -Palm Beach Florida Revenue Bonds * 1-1-13 25,590 Aa1 AA+South Fulton Georgia Municipal Regional Water and Sewer Authority Water Revenue Bonds (3) * 1-1-13 30,664 - -Wayne County Indiana Jail Holding Corporation First Mortgage Bonds * 1-15-13 20,683 A1 -

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Galveston County Texas Limited Tax Criminal Justice Bonds, Unlimited Tax Road Bonds, and Combination Tax and Revenue Certificates of Obligations * 2-1-13 $ 51,366 Aa1 -Hammond Indiana Redevelopment Authority Taxable Lease Rental Revenue Refunding Bonds (2) 2-1-13 102,882 Baa2 BBBIndiana Bond Bank State Revolving Fund Program Bonds * 2-1-13 36,381 - AAAIndiana Bond Bank State Revolving Fund Program Bonds (2) * 2-1-13 41,566 Baa2 -Bastrop Texas Independent School District Refunding Bonds 2-15-13 34,910 Aaa -Cleveland Texas Independent School District Unlimited Tax School Building Bonds * 2-15-13 49,517 Aaa AAADallas Texas General Obligation Bonds * 2-15-13 25,714 Aa1 AA+Northwest Texas Independent School District General Obligation Bonds * 2-15-13 15,483 Aaa -Aurora Colorado Single Family Mortgage Revenue Bonds * 3-1-13 56,129 - AA+Forsyth County North Carolina General Obligation Public Improvement Bonds * 3-1-13 10,284 Aaa AAAMichigan State Hospital Finance Authority Refunding Bonds * 3-1-13 36,084 A1 -North Texas Municipal Water District Regional Solid Waste Disposal System Revenue Bonds * 3-1-13 36,095 Aa3 AA

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St. Charles Missouri School District General Obligation Bonds * 3-1-13 $ 30,939 Aa3 AA-Mohave County Arizona Industrial Development Authority Correctional Facilities Contract Revenue Bonds 4-1-13 46,519 - AA+Richland County South Carolina School District Number 2 General Obligation Bonds * 4-1-13 94,866 Aa1 AADetroit Michigan City School District School Building and Site Improvement Bonds * 5-1-13 52,167 Aa2 AA-Fort Pierce Florida Redevelopment Agency Redevelopment Revenue Bonds (3) * 5-1-13 72,633 - -Montgomery County Maryland General Obligation Bonds * 5-1-13 10,314 Aaa AAAUniversity of California Revenue Bonds * 5-15-13 26,010 Aa1 -Fairfax County Virginia Economic Development Authority Revenue Bonds * 6-1-13 10,529 Aa1 AA+Tobacco Settlement Financing Corporation Tobacco Settlement Asset-Backed Bonds * 6-1-13 21,117 Aaa AA+Arizona Tourism and Sports Authority Tax Revenue Bonds * 7-1-13 10,469 A1 -State of Florida State Board of Education Lottery Revenue Bonds * 7-1-13 47,670 A1 AAAFlorida Department of Transportation Right-of-Way Acquisition and Bridge Construction Bonds * 7-1-13 52,869 Aa1 AAAIndianapolis-Marion County Indiana Public Library General Obligation Bonds * 7-1-13 26,012 Aa1 -

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Anderson Indiana School Building Corporation First Mortgage Revenue Bonds * 7-15-13 $ 10,451 - AA+Board of Regents of the University Texas, Revenue Financing System Bonds * 8-15-13 10,487 Aaa AAACamden Alabama Industrial Development Board Exempt Facilities Revenue Bonds * 12-1-13 53,946 - AA+(Certificates of Participation) Penta Career Center, Wood, Lucas, Sandusky, Fulton, Ottawa, Henry, and Hancock Counties Ohio School Facilities * 4-1-14 5,360 Aa3 -New Mexico Finance Authority State Transportation Revenue Bonds (Senior Lien) * 6-15-14 10,931 Aa1 AA+Massachusetts Health and Educational Facilities Authority Revenue Bonds (3) * 7-1-14 10,758 - -City of Waxahachie Texas (Ellis County) Combination Tax and Revenue Certificates of Obligations * 8-1-14 5,490 Aa3 A+

Total $ 1,934,925

* Bonds have been pre-funded or advance refunded and the maturity date reflected is the escrow agent call date.(1) Bonds had a "withdrawn rating" from Moody's as of June 30, 2012.(2) Bonds were not assigned a rating of A or higher.(3) Unable to determine the rating for bond.

All of these investments were liquidated by the trustee on September 6, 2012.

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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. Greene 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. Greene County has no investment policy that would further limit its investment choices. As of June 30, 2012, Greene County’s investment in the National Financial Services Money Market Portfolio was unrated. As detailed above, four investments in bonds totaling $89,768 had a withdrawn rating. Six investments in bonds totaling $270,878 had ratings lower than A. We were unable to determine the ratings for six investments in bonds totaling $190,794. All other investments were rated A or higher by Moody’s and/or Standard and Poors.

B. Capital Assets Capital assets activity for the year ended June 30, 2012, was as follows: Primary Government Governmental Activities:

Balance Balance7-1-11 Increases Decreases 6-30-12

Capital Assets Not Depreciated:Land $ 500,320 $ 0 $ 0 $ 500,320Construction in Progress 1,584,889 8,134 (1,579,609) 13,414Total Capital Assets Not Depreciated $ 2,085,209 $ 8,134 $ (1,579,609) $ 513,734

Capital Assets Depreciated:Buildings and Improvements $ 11,406,906 $ 3,973,677 $ 0 $ 15,380,583Infrastructure 59,400,874 600,567 (3,535) 59,997,906Other Capital Assets 12,674,489 743,074 0 13,417,563Total Capital Assets Depreciated $ 83,482,269 $ 5,317,318 $ (3,535) $ 88,796,052

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Governmental Activities (Cont.):


Less Accumulated Depreciated For:Buildings and Improvements $ 5,839,786 $ 406,559 $ 0 $ 6,246,345Infrastructure 33,128,822 1,519,109 (3,535) 34,644,396Other Capital Assets 9,782,584 911,622 0 10,694,206Total Accumulated Depreciation $ 48,751,192 $ 2,837,290 $ (3,535) $ 51,584,947

Total Capital Assets Depreciated, Net $ 34,731,077 $ 2,480,028 $ 0 $ 37,211,105

Governmental Activities Capital Assets, Net $ 36,816,286 $ 2,488,162 $ (1,579,609) $ 37,724,839

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

Governmental Activities:

General Government $ 126,441Finance 26,902Administration of Justice 9,525Public Safety 599,552Public Health and Welfare 280,936Highways/Public Works 1,793,934

Total Depreciation Expense - Governmental Activities $ 2,837,290

Discretely Presented Greene County School Department Governmental Activities:


Capital Assets Not Depreciated:Land $ 886,166 $ 0 $ 0 $ 886,166Construction in Progress 210,386 251,959 (210,386) 251,959Total Capital Assets Not Depreciated $ 1,096,552 $ 251,959 $ (210,386) $ 1,138,125

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Capital Assets Depreciated:Buildings and $ 47,364,133 $ 1,109,218 $ 0 $ 48,473,351 ImprovementsOther Capital Assets 14,187,689 200,690 (493,212) 13,895,167Total Capital Assets Depreciated $ 61,551,822 $ 1,309,908 $ (493,212) $ 62,368,518

Less Accumulated Depreciated For:Buildings and $ 19,451,097 $ 1,100,826 $ 0 $ 20,551,923 ImprovementsOther Capital Assets 8,833,636 1,100,957 (493,212) 9,441,381Total Accumulated Depreciation $ 28,284,733 $ 2,201,783 $ (493,212) $ 29,993,304

Total Capital Assets Depreciated, Net $ 33,267,089 $ (891,875) $ 0 $ 32,375,214

Governmental Activities Capital Assets, Net $ 34,363,641 $ (639,916) $ (210,386) $ 33,513,339

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

Instruction $ 2,041,338 Operation of Non-Instructional Services 160,445

Total Depreciation Expense - Governmental Activities $ 2,201,783

C. Construction Commitments

At June 30, 2012, Greene County had uncompleted construction commitments of $248,293 in the General Fund. Funding has been received for these future expenditures. At June 30, 2012, Greene County had uncompleted construction commitments in the Highway/Public Works Fund related to bridge programs totaling $234,000. Funding for these future expenditures is expected to be provided by federal grants ($187,200) and available fund balance ($46,800).

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The discretely presented School Department had uncompleted construction commitments of $268,382 and $245,924 in the General Purpose School and Education Capital Projects funds, respectively, at June 30, 2012. Funding has been received for these future expenditures.

D. Interfund Receivables, Payables, and Transfers

The composition of interfund balances as of June 30, 2012, was as follows: Due to/from Other Funds:

Receivable Fund Payable Fund Amount

Primary Government: General Nonmajor governmental $ 13,538 Education Debt Service " 30,638 Nonmajor governmental General 109,858

" Internal Service 11,654

Discretely Presented School Department: General Purpose School School Federal Projects 9,739

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

Receivable Fund Payable Fund Amount

Primary Government: Component Unit: Education Debt Service Greene County School Department -

General Purpose School $ 219,204

Interfund Transfers: Interfund transfers for the year ended June 30, 2012, consisted of the following amounts:

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Primary Government

Highway/ Education Public Works Debt Service

Transfers Out Fund Fund

General Fund $ 86,914 $ 0Nonmajor governmental funds 0 30,638

Total $ 86,914 $ 30,638

Transfers In

Discretely Presented Greene County School Department

GeneralPurpose NonmajorSchool Governmental

Transfers Out Fund Funds

General Purpose School Fund $ 0 $ 585,652School Federal Projects Fund 22,072 0Nonmajor governmental funds 13,349 0

Total $ 35,421 $ 585,652

Transfers In

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 Debt Primary Government General Obligation Bonds, Notes, and Other Loans

The county issues general obligation bonds and other loans to provide funds for the acquisition, construction, and renovation of major capital facilities. In addition, general obligation bonds and other loans have been issued to refund other debt issuances. 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, up to nine years for

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notes, and up to 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, 2012, will be retired from the General Debt Service and Education Debt Service funds. General obligation bonds, capital outlay notes, and other loans outstanding as of June 30, 2012, for governmental activities are as follows:

OriginalInterest Amount Balance

Type Rate of Issue 6-30-12

General Obligation Bonds 2 to 3 % 8,170,000$ 8,170,000$ General Obligation Bonds, Refunding 2 to 2.1 6,665,000 6,610,000General Obligation Rural School Bonds 2.25 to 2.75 990,000 990,000 General Obligation Rural School Bonds, Refunding 2.5 to 5 22,330,000 19,435,000 Capital Outlay Notes 4.06 229,000 124,823 Other Loans Payable - Fixed Rate 4 to 5.25 10,000,000 3,750,000

In prior years, Greene County had borrowed $10,000,000 under a loan agreement with the Blount County Public Building Authority to finance road improvements, re-surfacing, and to refinance bonds and other loans. The Blount County Public Building Authority loan is repayable at an interest rate that is a tax-exempt fixed rate. Loans of $5,975,000 were refunded with general obligation refunding bonds issued during the year ended June 30, 2012. The annual requirements to amortize all general obligation bonds, notes, and other loans outstanding as of June 30, 2012, including interest payments, are presented in the following tables. Year EndingJune 30 Principal Interest Total

2013 $ 25,823 $ 4,809 $ 30,6322014 26,881 3,750 30,6312015 27,983 2,647 30,6302016 29,131 1,499 30,6302017 15,005 305 15,310

Total $ 124,823 $ 13,010 $ 137,833

Notes

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Year EndingJune 30 Principal Interest Total

2013 $ 905,000 $ 295,988 $ 1,200,9882014 955,000 295,988 1,250,9882015 245,000 93,637 338,6372016 260,000 81,387 341,3872017 245,000 68,387 313,3872018-2021 1,140,000 141,924 1,281,924

Total $ 3,750,000 $ 977,311 $ 4,727,311

Other Loans

Year EndingJune 30 Principal Interest Total

2013 $ 1,575,000 $ 1,224,980 $ 2,799,9802014 1,640,000 1,172,226 2,812,2262015 2,485,000 1,117,002 3,602,0022016 2,575,000 1,042,417 3,617,4172017 2,590,000 962,076 3,552,0762018-2022 13,280,000 3,521,892 16,801,8922023-2026 11,060,000 994,925 12,054,925

Total $ 35,205,000 $ 10,035,518 $ 45,240,518

Bonds

There is $1,317,572 available in the debt service funds to service long-term debt. Bonded debt per capita totaled $595, based on the 2010 federal census for residents living outside the Greeneville school district and $215 for residents living inside the Greeneville school district. Debt per capita, including bonds, notes, and other loans, totaled $651, based on the 2010 federal census for residents living outside the Greeneville school district and $269 for residents living inside the Greeneville school district. Changes in Long-term Liabilities Long-term liability activity for the year ended June 30, 2012, was as follows:

Governmental Activities: Bonds Notes

Balance, July 1, 2011 $ 30,390,000 $ 643,044Additions 6,665,000 0Reductions (1,850,000) (518,221)

Balance, June 30, 2012 $ 35,205,000 $ 124,823

Balance Due Within One Year $ 1,575,000 $ 25,823

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Other CompensatedLoans Absences

Balance, July 1, 2011 $ 10,000,000 $ 944,177Additions 0 870,328Reductions (6,250,000) (922,692)

Balance, June 30, 2012 $ 3,750,000 $ 891,813

Balance Due Within One Year $ 905,000 $ 787,515

Balance, July 1, 2011 $ 397,500Additions 168,700Reductions (45,700)

Balance, June 30, 2012 $ 520,500

Balance Due Within One Year $ 0

Other Postemployment

Benefits

Analysis of Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2012 $ 40,492,136Less: Balance Due Within One Year (3,293,338)Less: Deferred Amount on Refunding (1,103,239)

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 36,095,559

Compensated absences and other postemployment benefits will be paid from the employing funds, primarily the General, Solid Waste/Sanitation, and Highway/Public Works funds. Advance Refunding On November 30, 2011, Greene County advance refunded a loan with a separate general obligation bond issue. The county issued $6,665,000 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 until the call date (June 1, 2014). As a result, the refunded bonds are

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considered defeased, and the liability has been removed from the county’s long-term debt. As a result of the advance refunding, total debt service payments over the next nine years will be reduced by $390,733, and an economic gain (difference between the present value of the debt service payments of the refunded and refunding bonds) of $387,737 was obtained. Discretely Presented Greene County School Department Changes in Long-term Liabilities Long-term liability activity for the discretely presented Greene County School Department for the year ended June 30, 2012, was as follows: Governmental Activities:

Termination CompensatedBenefits Absences

Balance, July 1, 2011 $ 380,604 $ 63,103Additions 425,106 143,741Reductions (380,604) (63,103)

Balance, June 30, 2012 $ 425,106 $ 143,741

Balance Due Within One Year $ 425,106 $ 136,554

OtherPostemployment

Benefits

Balance, July 1, 2011 $ 2,242,942Additions 1,917,484Reductions (928,058)

Balance, June 30, 2012 $ 3,232,368

Balance Due Within One Year $ 0

Analysis of Noncurrent Liabilities Presented on Exhibit A:

Total Noncurrent Liabilities, June 30, 2012 $ 3,801,215Less: Balance Due Within One Year (561,660)

Noncurrent Liabilities - Due in More Than One Year - Exhibit A $ 3,239,555

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Termination benefits, compensated absences, and other postemployment benefits will be paid from the employing funds, primarily the General Purpose School and School Federal Projects funds.

F. Pledges of Receivables and Future Revenues Hotel/Motel Tax Revenues Pledged Greene County pledged the portion of hotel/motel tax that was designated to support or promote the performing arts to repay $229,000 in capital outlay notes issued in August 2007 to finance the construction of a band room at a county school. The notes are also guaranteed by the county in the event the hotel/motel tax revenues are insufficient to meet the debt service requirements on the notes. The hotel/motel tax collections are projected to produce 100 percent of the debt service requirements over the life of the notes. Total principal and interest for the notes is $137,833, with annual requirements ranging from $30,632 in the next fiscal year to $15,310 in the final year. For the current year, principal and interest paid and hotel/motel tax generated were $30,630 and $52,071, respectively. Component Unit Revenues Pledged for Primary Government Debt In 2000, the citizens of Greene County voted to increase the local option sales tax rate from 2.5 percent to 2.75 percent. The increase in local option sales tax was restricted to education purposes. In 2001, the Greene County School Department pledged, as security for bonds issued by Greene County, an annual amount not to exceed $250,000 of restricted funds received from the state for capital outlay purchases and the entire amount of the local option sales tax increase. The bonds issued by Greene County in 2001 totaling $18 million to provide financing for school construction and the related refunding bonds of $14,980,000 issued in 2005 are payable through 2026. Total principal and interest remaining on the debt is $20,506,238 with annual requirements ranging from $1,136,369 in the next fiscal year to $1,727,406 in the final year. In 2004, the County Commission granted the School Department a temporary waiver of its pledge to use its restricted funds received from the state to pay principal and interest on the bonds. The School Department was required to resume using the restricted funds to pay principal and interest on the bonds in 2011. For the current year, principal and interest paid by the county and local option sales tax allocated to the Education Debt Service Fund were $1,145,169 and $646,705, respectively. The Greene County School Department pledged, as security for bonds issued by Greene County, the annual savings arising from its energy conservation program. The bonds issued by Greene County in 2001 totaling $3,925,000 to provide financing for energy conservation improvements were retired in 2012 and the related refunding bonds of $2,150,000 issued in 2005 are payable through 2016. The School Department pledged its total annual savings until the bonds are retired in 2016. Total principal and interest remaining on the debt is $2,285,375 with annual requirements ranging from $424,322 in the next fiscal year to $489,600 in the final year. In 2004, the County

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Commission granted the School Department a temporary waiver of its pledge to use savings from its energy conservation program to pay principal and interest on the bonds. The School Department was required to resume using the pledged revenue to pay principal and interest on the bonds in 2012; however, there were no savings from the energy conservation program. For the current year, principal and interest paid by the county was $416,969.

G. On-Behalf Payments – Discretely Presented Greene County School Department The State of Tennessee pays health insurance premiums for retired teachers on-behalf of the Greene County School Department. These payments are made by the state to the Local Education Group Insurance Plan and the Medicare Supplement Plan. Both of these plans are administered by the State of Tennessee and reported in the state’s Comprehensive Annual Financial Report. Payments by the state to the Local Education Group Insurance Plan and the Medicare Supplement Plan for the year ended June 30, 2012, were $341,307 and $53,706, respectively. The School Department has recognized these on-behalf payments as revenues and expenditures in the General Purpose School Fund.

V. OTHER INFORMATION

A. Risk Management

In the prior year, Greene County chose to establish the Employee Health Insurance Fund for risks associated with the employees’ health insurance plan. The self-insurance fund began operations in the 2011-12 fiscal year. The Employee Health Insurance Fund is accounted for as an Internal Service Fund where assets are set aside for claim settlements. The county is self-insured to a limit of $100,000 per covered person for a single medical claim and 100 percent of expected claims. The maximum aggregate liability totaled $4,517,643 or 100 percent of the first monthly aggregate deductible amount times 12, whichever is greater. The county obtained a stop/loss commercial insurance policy to cover claims beyond this liability.

All full-time employees of the primary government are eligible to participate. A premium charge is allocated to each fund that accounts for full-time employees.

The discretely presented Greene County School Department participates in the Local Education Group Insurance Fund (LEGIF), a public entity risk pool established to provide a program of health insurance coverage for employees of local education agencies. In accordance with Section 8-27-301, Tennessee Code Annotated (TCA), all local education agencies are eligible to participate. The LEGIF is included in the Comprehensive Annual Financial Report of the State of Tennessee, but the state does not retain any risk for losses by this fund. Section 8-27-303, TCA, provides for the LEGIF to be self-sustaining through member premiums.

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Greene County and the Greene County School Department have established a self-insurance program for risks associated with general liability, property, casualty, and workers’ compensation. The self-insurance program is accounted for as a special revenue fund (Special Purpose Fund) in which assets are set aside for claim settlements. The county and the School Department retain the risk of loss to a limit of $250,000 per individual claim, or $2,000,000 in the aggregate for general liability, property, and casualty losses. The county and the School Department are self-insured to a limit of $400,000 per individual claim, or $1,000,000 in the aggregate for workers’ compensation. Amounts exceeding these limits are covered by excess loss policies. A fee is paid to a third-party agent who investigates claims and determines action to be taken. Liabilities of the self-insurance funds are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. These funds establish claims liabilities based on estimates of the ultimate cost of claims that have been reported but not settled, and of claims that have been incurred but not reported. Claims liabilities include specific, incremental claim adjustment expenditures/expenses, if any. In addition, estimated recoveries, if any, on settled claims have been deducted from the liability for unpaid claims. The process used to compute claims liabilities does not necessarily result in an exact amount. Changes in the balance of claims liabilities during the past two fiscal years for the Self-Insurance Fund and for the current fiscal year for the Employee Insurance – General Fund are as follows: Self-Insurance Fund

Beginning of Current-year BalanceFiscal Year Claims and at Fiscal

Liability Estimates Payments Year-end

2010-11 $ 1,549,295 $ 504,280 $ (667,123) $ 1,386,452 2011-12 1,386,452 801,687 (618,505) 1,569,634

Employee Insurance - General Fund

Beginning of Current-year BalanceFiscal Year Claims and at Fiscal

Liability Estimates Payments Year-end

2011-12 $ 0 $ 3,812,405 $ (3,731,504) $ 80,901

B. Subsequent Events

On August 31, 2012, Ralph Bowers left the Office of Assessor of Property and was succeeded by Charles Jeffers.

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On September 7, 2012, Greene County issued capital outlay notes of $484,416 for school buses.

C. Contingent Liabilities On August 18, 2003, the Greene County Commission approved the issuance and sale by the Town of Greeneville, Tennessee, of its airport revenue and tax refunding and improvement bonds not to exceed $1,350,000, which are payable from the revenues of the Greeneville-Greene County Airport Authority. The Airport Authority is a joint venture between the Town of Greeneville and Greene County. The county pledged the full faith and credit of the county for one-half of the costs incurred in relation to the issuance, sale, delivery, and prompt payment of the bonds in the event of a deficiency in airport revenues. As of June 30, 2012, future principal requirements on the debt totaled $845,000 and future interest requirements totaled $270,702. There are several pending lawsuits in which the county is involved. Based on letters from attorneys, management believes that potential claims not already recorded in the self-insurance programs would not materially affect the financial statements of the county.

D. Change in Administration On June 30, 2012, Gail Davis Jeffers left the Office of Circuit and General Sessions Courts Clerk and was succeeded by Pam Venable.

E. Joint Ventures

The county is a participant with the Town of Greeneville in joint ventures to operate Greeneville-Greene County Airport Authority, Greeneville-Greene County Library, Greeneville-Greene County Landfill, Kinser Park Commission, and Greeneville-Greene County Sports Complex Commission. The Greeneville-Greene County Airport Authority operates the county’s only airport facility. The authority is governed by a five-member body comprising two appointees from the county, two from the town, and one member elected by the board. The authority generates operating revenue from leasing buildings and hangars and from appropriations from the county and town. For the year ended June 30, 2012, the county remitted $30,380 to the authority to subsidize its operations. The Greeneville-Greene County Library Board operates a library facility that is equally owned by the county and the Town of Greeneville. The library generates its operating revenue from donations, fines, copy fees, and appropriations from the county and town. For the year ended June 30, 2012, the county remitted $84,500 to the library to subsidize its operations.

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The Greeneville-Greene County Landfill is governed by a seven-member Municipal Solid Waste Region Board including three appointees from the county, three from the Town of Greeneville, and one from the City of Tusculum. The landfill currently accepts only demolition waste for disposal on site. The landfill also serves as a transfer station for class 1 and 2 waste, which is hauled out of the county. Greene County shares the costs of this operation with the Town of Greeneville, and the town serves as fiscal agent. For the year ended June 30, 2012, the county paid $679,289 toward the operating costs, which included closure/postclosure care of the old landfill site, operations of the transfer station, and tipping fees for the disposal of the county’s class 1 and 2 solid waste. Greene County, along with the Town of Greeneville, has entered into two contracts in-lieu-of performance bonds with the Tennessee Department of Environment and Conservation to ensure proper operation and closure/postclosure of the landfill facilities. The total of these contracts in-lieu-of performance bonds is approximately $1,535,994, which the county and town each guarantee 50 percent. The Kinser Park Commission oversees the operation of Kinser Park, a recreation facility that includes camping, swimming, and golf. The commission is governed by a nine-member body including two appointees from both the county and town and five citizens at large selected by the other park commissioners. In addition, the mayors of the Town of Greeneville and Greene County serve as ex-officio members of the body. The commission generates its operating revenue from concessions, rental fees, and appropriations from the county and town. For the year ended June 30, 2012, the county remitted $29,400 to the commission to subsidize its operations. Greene County and the Town of Greeneville entered into an agreement to form the Greeneville-Greene County Sports Complex Commission to oversee the construction, operation, and maintenance of a jointly owned sports complex on Hal Henard Road. The complex is managed by a seven-member commission consisting of: the county mayor, the town mayor, a county commissioner, a town alderman and three members of the town’s Parks and Recreation Advisory Board. Day-to-day operations are performed by the town’s Parks and Recreation Department. All revenues are applied toward the operating and maintenance costs with any annual surplus reserved for future expenses of the complex. The costs of management, operation, maintenance, and improvements are funded equally (50/50) and the Town of Greeneville serves as the fiscal agent for the complex. For the year ended June 30, 2012, the county remitted $29,400 to the commission to subsidize its operations.

The Third Judicial District Drug Task Force (DTF) is a joint venture formed by an interlocal agreement between the district attorney general of the Third Judicial District; Greene, Hamblen, Hancock, and Hawkins 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

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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. Greene County made no contributions to the DTF for the year ended June 30, 2012, and does not have any equity interest in this joint venture. The Upper East Tennessee Juvenile Detention Center was formed through cooperative agreements between Greene County and the counties of Carter, Hawkins, Johnson, Sullivan, Unicoi, and Washington for the operation of a program to divert youth from commitment to the Department of Correction facilities. This program is governed by a board of directors designated by the counties. The board of directors has contracted with Universal Health Services, Inc., to undertake the management of this program. Operation costs to the counties are allocated according to percentages based on population. Greene County’s participation is 13.6 percent. The county also pays a daily fee for individuals from the county using the facility. Complete financial statements for these joint ventures can be obtained from their respective administrative offices at the following addresses:

Administrative Offices:

Greeneville-Greene County Airport Authority c/o Town of Greeneville 200 North College Street Greeneville, TN 37843

Greeneville-Greene County Library 210 North Main Street Greeneville, TN 37843 Greeneville-Greene County Landfill c/o Town of Greeneville 200 North College Street Greeneville, TN 37843 Kinser Park Commission 650 Kinser Park Lane Greeneville, TN 37843 Greeneville-Greene County Sports Complex Commission c/o Town of Greeneville 200 North College Street Greeneville, TN 37843

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Administrative Offices (Cont.):

District Attorney General Third Judicial District 124 Austin Street, Suite 3 Greeneville, TN 37745

Upper East Tennessee Regional Juvenile Detention Center 307 Wesley Street Johnson City, TN 37601

F. Jointly Governed Organizations

The East Tennessee Regional Agribusiness Marketing Authority was established through Title 64 of Tennessee Code Annotated (TCA), and includes the counties of Claiborne, Cocke, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Sullivan, Washington, and Unicoi. The purpose of the authority is to establish and operate a market for agricultural products of the region through a food distribution center. The authority is governed by a board of directors consisting of the county mayors/executives of each county or the county mayors’/executives’ designee and one nonvoting member representing: the Tennessee Department of Agriculture and the University of Tennessee’s Agriculture Extension Service. An executive committee consisting of the chairman, vice chairman, secretary, and treasurer of the board of directors, along with the center manager (as an ex-officio member), is in charge of the daily operation of the center. Discretely Presented Greene County School Department The Upper East Tennessee Educational Cooperative (UETEC) was reported as a jointly governed organization in prior years, but was dissolved during the 2010-11 year. The cooperative had been established through a contractual agreement between the boards of education of Greene County and various other counties and cities in the upper East Tennessee area. UETEC entered into an agreement to establish and operate the Northeast Tennessee Cooperative (NETCO) to obtain lower prices for food supplies, materials, equipment, and services by combining the purchasing requirements of each of the members’ school food service systems. NETCO continues to operate after the dissolution of UETEC. NETCO has contracted with a coordinating district (Johnson City School System) and a service provider to operate this service. Greene County School Department, along with certain other former member districts of UETEC, is also a member of NETCO. NETCO is governed by a representative committee, including one representative from each of the member districts and an executive council, consisting of the chair, vice-chair, secretary, treasurer, and a member-at-large from the representative committee.

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G. Retirement Commitments

Employees of Greene County are members of the Political Subdivision Pension Plan (PSPP), an agent multiple-employer defined benefit pension plan administered by the Tennessee Consolidated Retirement System (TCRS). TCRS provides retirement benefits, as well as death and disability benefits. Benefits are determined by a formula using the member’s 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. A reduced retirement benefit is available to vested members at the age of 55. Disability benefits are available to active members with five years of service who become disabled and cannot engage in gainful employment. There is no service requirement for disability that is the result of an accident or injury occurring while the member was in the performance of duty. Members joining the system after July 1, 1979, become vested after five years of service, and members joining prior to July 1, 1979, were vested after four years of service. Benefit provisions are established in state statute found in Title 8, Chapters 34-37 of Tennessee Code Annotated. State statutes are amended by the Tennessee General Assembly. Political subdivisions such as Greene County participate in the TCRS as individual entities and are liable for all costs associated with the operation and administration of their plan. Benefit improvements are not applicable to a political subdivision unless approved by the chief governing body.

The TCRS issues a publicly available financial report that includes financial statements and required supplementary information for the PSPP. That report may be obtained by writing to the Tennessee Treasury Department, Consolidated Retirement System, 10th Floor, Andrew Jackson Building, Nashville, TN 37243-0230 or can be accessed at http://www.tn.gov/treasury/tcrs/PS/. Funding Policy Greene County requires employees to contribute five percent of their earnable compensation. The county is required to contribute at an actuarially determined rate; the rate for the fiscal year ended June 30, 2012, was 10.2 percent of annual covered payroll. The contribution requirement of plan members is set by state statute. The contribution requirement for the county is established and may be amended by the TCRS Board of Trustees. Annual Pension Cost For the year ended June 30, 2012, Greene County’s annual pension cost of $1,854,604 to TCRS was equal to the county’s required and actual contributions. The required contribution was determined as part of the July 1, 2009, actuarial valuation using the frozen entry age actuarial cost method. Significant actuarial assumptions used in the valuation include (a) rate of return on investment of present and future assets of 7.5 percent a year compounded annually, (b) projected three percent annual rate of

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inflation, (c) projected salary increases of 4.75 percent (graded) annual rate (no explicit assumption is made regarding the portion attributable to the effects of inflation on salaries), (d) projected 3.5 percent annual increase in the Social Security wage base, and (e) projected post retirement increases of 2.5 percent annually. The actuarial value of assets was determined using techniques that smooth the effect of short-term volatility in the market value of total investments over a ten-year period. The county’s unfunded actuarial accrued liability is being amortized as a level dollar amount on a closed basis. The remaining amortization period at July 1, 2009, was ten years. An actuarial valuation was performed as of July 1, 2011, which established contribution rates effective July 1, 2012.

Trend Information

Fiscal Year

Ended

Annual Pension

Cost (APC)

Percentage of APC

Contributed

Net Pension

Obligation

6-30-12 $1,854,604 100% $0 6-30-11 1,727,748 100 0 6-30-10 1,826,084 100 0

Funded Status and Funding Progress As of July 1, 2011, the most recent actuarial valuation date, the plan was 94.98 percent funded. The actuarial accrued liability for benefits was $51.2 million, and the actuarial value of assets was $48.63 million, resulting in an unfunded actuarial accrued liability (UAAL) of $2.57 million. The covered payroll (annual payroll of active employees covered by the plan) was $17.52 million, and the ratio of the UAAL to the covered payroll was 14.67 percent. 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 values of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. SCHOOL TEACHERS Plan Description The Greene County School Department contributes to the State Employees, Teachers, and Higher Education Employees Pension Plan (SETHEEPP), a cost-sharing multiple-employer defined benefit pension plan administered by the Tennessee Consolidated Retirement System (TCRS). TCRS provides retirement benefits as well as death and disability benefits to plan members and their beneficiaries. Benefits are determined by a formula using the

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member’s 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. A reduced retirement benefit is available to vested members who are at least 55 years of age or have 25 years of service. Disability benefits are available to active members with five years of service who become disabled and cannot engage in gainful employment. There is no service requirement for disability that is the result of an accident or injury occurring while the member was in the performance of duty. Members joining the plan on or after July 1, 1979, are vested after five years of service. Members joining prior to July 1, 1979, are vested after four years of service. Benefit provisions are established in state statute found in Title 8, Chapters 34-37 of Tennessee Code Annotated. State statutes are amended by the Tennessee General Assembly. A cost of living adjustment (COLA) is provided to retirees each July based on the percentage change in the Consumer Price Index (CPI) during the previous calendar year. No COLA is granted if the CPI increases less than one-half percent. The annual COLA is capped at three percent. The TCRS issues a publicly available financial report that includes financial statements and required supplementary information for the SETHEEPP. That report may be obtained by writing to the Tennessee Treasury Department, Consolidated Retirement System, 10th Floor Andrew Jackson Building, Nashville, TN 37243-0230 or can be accessed at www.tn.gov/treasury/tcrs/Schools. Funding Policy Most teachers are required by state statute to contribute five percent of their salaries to the plan. The employer contribution rate for the School Department is established at an actuarially determined rate. The employer rate for the fiscal year ended June 30, 2012, was 9.05 percent of annual covered payroll. The employer contribution requirement for the School Department is established and may be amended by the TCRS Board of Trustees. The employer’s contributions to TCRS for the years ended June 30, 2012, 2011, and 2010, were $2,252,646, $2,197,637, and $1,563,461, respectively, equal to the required contributions for each year.

H. Other Postemployment Benefits (OPEB)

Primary Government Plan Description During the year, Greene County elected to establish a self-insured postemployment benefits plan administered by United Health Care for medical benefits for retirees. In previous years, Greene County participated in a commercial postemployment benefit plan. For accounting purposes, the plan is a single-employer defined benefit OPEB plan. Benefits are established and amended by the County Commission.

66

Funding Policy The premium requirements of plan members are established and may be amended by the County Commission. 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 county develops its own contribution policy in terms of subsidizing active employees or retired employees’ premiums. Eligibility is determined based upon the employee’s age and length of service. Eligible employees are those who have attained age 50 and who have more than 30 years of service, consisting of 20 years or more with Greene County, with credit for up to ten years of other service under the Tennessee Consolidated Retirement System and up to four years credit for military service. Greene County pays 50 percent of the cost for single coverage. Greene County does not pay any additional amounts towards spouse coverage. During the year ended June 30, 2012, Greene County contributed $45,700 for postemployment healthcare benefits. Annual OPEB Cost and Net OPEB Obligation

ARC $ 169,300Interest on the NPO 15,900Adjustment to the ARC (16,500)Annual OPEB cost $ 168,700Amount of contribution (45,700)Increase/decrease in NPO $ 123,000Net OPEB obligation, 7-1-11 397,500

Net OPEB obligation, 6-30-12 $ 520,500

PercentageFiscal Annual of Annual Net OPEBYear OPEB OPEB Cost Obligation

Ended Plans Cost Contributed at Year End

6-30-10 Commerical $ 185,200 27 % $ 272,600 6-30-11 " 159,900 22 397,500 6-30-12 Self-insured 168,700 27 520,500

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Funded Status and Funding Progress

The funded status of the plan as of July 1, 2010, was as follows:

Actuarial valuation date 7-1-10 (1)Actuarial accrued liability (AAL) $ 1,639,700Actuarial value of plan assets $ 0Unfunded actuarial accrued liability (UAAL) $ 1,639,700Actuarial value of assets as a % of the AAL 0%Covered payroll (active plan members) $ 12,875,000UAAL as a % of covered payroll 13%

(1) These amounts are roll-forward amounts for the July 1, 2010, study,

which was performed when the county participated in a commercial health insurance plan. During the 2011-12 year, the county established a self-insured health program. A valuation will be performed for the self-insured health program as of July 1, 2012.

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, 2010, actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a four percent investment rate of return and an annual healthcare cost trend rate of 9.5 percent initially, reduced by decrements to an ultimate rate of 5.5 percent by fiscal year 2018. The unfunded actuarial accrued liability is being amortized on an open basis over a 30-year period beginning with July 1, 2008.

68

Discretely Presented Greene County School Department 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 benefits 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 state’s retirement system may participate in a state-administered Medicare Supplement Plan that does not include pharmacy. The plans are reported in the State of Tennessee Comprehensive Annual Financial Report (CAFR). The CAFR is available on the state’s website at http://tn.gov/finance/act/cafr.html. Funding Policy The premium requirements of the Local Education Group 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 employers develop their own contribution policy in terms of subsidizing active employees or retired employees’ premiums since the committee is not prescriptive on that issue. The state does not provide a subsidy for local government participants; however, the state does provide a partial subsidy to Local Education Agency pre-65 teachers and a full subsidy based on years of service for post-65 teachers in the Medicare Supplement Plan. The required contribution rate for retired teachers ranges from zero to 60 percent based on the years of service. During the year ended June 30, 2012, the discretely presented School Department contributed $928,058 for postemployment healthcare benefits.

69

http://tn.gov/finance/act/cafr.html

Annual OPEB Cost and Net OPEB Obligation

LocalEducation

GroupPlan

ARC $ 1,923,000Interest on the NPO 89,718Adjustment to the ARC (95,234)Annual OPEB cost $ 1,917,484Amount of contribution (928,058)Increase/decrease in NPO $ 989,426Net OPEB obligation, 7-1-11 2,242,942

Net OPEB obligation, 6-30-12 $ 3,232,368

PercentageFiscal Annual of Annual Net OPEBYear OPEB OPEB Cost Obligation

Ended Plan Cost Contributed at Year End

6-30-10 Local Education Group $ 1,881,453 45% $ 1,235,573 6-30-11 " 1,898,936 47 2,242,942 6-30-12 " 1,917,484 48 3,232,368

The funded status of the plan as of July 1, 2011, was as follows:

LocalEducation

GroupPlan

Actuarial valuation date 7-1-11Actuarial accrued liability (AAL) $ 16,556,000Actuarial value of plan assets $ 0Unfunded actuarial accrued liability (UAAL) $ 16,556,000Actuarial value of assets as a % of the AAL 0%Covered payroll (active plan members) $ 32,070,436UAAL as a % of covered payroll 52%

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

70

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, 2011, actuarial valuation for the Local Education Group Plan, the projected unit credit actuarial cost method was used, and the actuarial assumptions included a four percent investment rate of return (net of administrative expenses). The annual healthcare cost trend rate was 9.25 percent for fiscal year 2012. The trend will decrease to 8.75 percent in fiscal year 2013 and then will be reduced by decrements to an ultimate rate of five percent by fiscal year 2021. 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 June 30, 2008.

I. Termination Benefits The Greene County School Department has entered into a retirement incentive bonus payment plan in accordance with contract provisions. This plan is available to all certified teachers who have (a) at least 20 years of service in Greene County and who have attained age 60 or (b) have a minimum of 30 years of credited membership in the Tennessee Consolidated Retirement System. The plan gives teachers who have met the above requirements a bonus of 35 percent of the teacher’s salary for the last year employed, either in a lump sum distribution or in three annual installments. During the 2011-12 year, 25 employees participated in the program. The estimated cost of these cash payments reported in the government-wide Statement of Net Assets is $425,106, with the entire amount being due within one year. The governmental funds financial statements reflect retirement incentive expenditures of $380,604 in the General Purpose School and School Federal Projects funds.

J. Office of Central Accounting Greene County operates under provisions of the Fiscal Control Acts of 1957. These acts provide for a central system of accounting, budgeting, and purchasing covering all funds administered by the county mayor and highway superintendent. These funds are maintained in the Office of

71

Central Accounting under the supervision of the director of accounts and budgets.

K. Purchasing Laws Offices of County Mayor and Superintendent of Highways The Office of Purchasing Agent was established under the provisions of the Purchasing Act of 1957. This statute provides for the purchasing agent to make all purchases for the County Mayor’s Office and the Highway Department. Purchasing procedures for the Highway Department are also governed by provisions of the Uniform Road Law, Section 54-7-113, Tennessee Code Annotated (TCA). These statutes provide for purchases exceeding $10,000 to be made after public advertisement and solicitation of competitive bids. Office of Director of Schools Purchasing procedures for the discretely presented Greene 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 – DISCRETELY PRESENTED GREENEVILLE-GREENE

COUNTY EMERGENCY COMMUNICATIONS DISTRICT A. Description of Organization

Greeneville-Greene County Emergency Communications District was established on November 8, 1988, pursuant to the provisions of Chapter 867 of the Public Acts of 1984 of the State of Tennessee. The district is responsible for furnishing local emergency telephone service and a primary emergency telephone number for the residents of Greene County, Tennessee. The district is governed by a nine-member board of directors appointed by the County Commissioners of Greene County, Tennessee. The board of directors has the authority to levy an emergency telephone service charge to be used to fund the operations of the district. The district began collecting telephone user fees in May 1989 and began operations during the year ended June 30, 1990.

The district is considered a component unit of Greene County, Tennessee, because the Greene County Mayor appoints and the Greene County commissioners affirm the district’s board of directors, and they must approve most debt issued by the district.

72

B. Summary of Significant Accounting Policies Basis of Accounting The district’s financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included in the statement of net assets. The statement of revenue, expenses, and changes in net assets presents increases (revenue) and decreases (expenses) in total assets. Under the accrual basis of accounting, revenue is recognized in the period in which it is earned while expenses are recognized in the period in which the liability is incurred. Operating revenue is revenue that is generated from the primary operations of the district. All other revenue is reported as non-operating revenue. Operating expenses are those expenses that are essential to the primary operations of the district. All other expenses are reported as non-operating expenses. GASB Statement No. 34, Basic Financial Statements-and Management’s Discussion and Analysis-for State and Local Governments establishes standards for external financial reporting for state and local governments and requires that resources be classified for accounting and reporting purposes into the following three net asset groups:

Invested in capital assets: This category includes capital assets, net of accumulated depreciation. Invested in capital assets at June 30, 2012, has been calculated as follows: Capital assets $ 631,453 Accumulated depreciation (353,839) Total $ 277,614 Restricted: This category includes net assets whose use is subject to externally imposed stipulations that can be fulfilled by actions of the district pursuant to those stipulations or that expire by the passage of time. The district had no restricted net assets as of June 30, 2012. Unrestricted: This category includes net assets that are not subject to externally imposed stipulations and that do not meet the definition of “restricted” or “invested in capital assets.” Unrestricted net assets may be designated for specific purposes by action of management or the board of directors or may otherwise be limited by contractual agreements with outside parties.

73

Accounts Receivable Accounts receivable, which are deemed uncollectible based upon a periodic review of the accounts are charged to revenue. At June 30, 2012, no allowance for uncollectible accounts was considered necessary. Capital Assets Capital assets, which include property and equipment, are recorded at cost and defined by the district as assets with an initial, individual cost of $250 or more (effective December 22, 2011). Depreciation is computed using the straight-line method over the estimated useful lives, which range from five to 25 years. Operating Budget The district is required by state law to adopt an annual operating budget. The board of directors approves the original budget and any amendments, and maintains the legal level of control at the line item level. The budget is prepared on the accrual basis of accounting. All appropriations lapse at the end of the year. Compensated Absences The district employees are granted vacation and sick leave in varying amounts and may accumulate sick leave indefinitely, which may then be used for early retirement. The district's policies do not provide for an employee to be paid for any unused sick leave in the event of termination. Vacation leave may be accumulated up to 160 hours. Any hours over 160 will be transferred to the employee’s sick leave account. Employees may receive payment for unused vacation leave, up to the 160 hour maximum, upon termination or resignation. Accumulated vacation leave is recorded as an expense and liability as the benefits accrue to the employees. No liability is recorded for accumulated sick leave.

C. Cash Cash represents money on deposit in various banks. The district considers all highly liquid investments with an original maturity date of three months or less when purchased to be cash equivalents. State of Tennessee law authorizes the district to invest in obligations of the United States or its agencies, nonconvertible debt securities of certain federal agencies, other obligations guaranteed as to principal and interest by the United States or any of its agencies, secured certificates of deposit and other evidences of deposit in state and federal banks and savings and loan associations, and the State of Tennessee Local Government Investment Pool. All deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) limits are required to be secured by one of two methods.

74

Excess funds can be deposited with a financial institution that participates in the State of Tennessee Bank Collateral Pool. For deposits with financial institutions that do not participate in the State of Tennessee 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. All of the district’s cash and cash equivalent balances at June 30, 2012, were entirely insured through the Federal Deposit Insurance Corporation or collateralized with securities held by the district’s agent in the district’s name.

D. Capital Assets

Balance Balance7-1-11 Additions Retirements 6-30-12

Capital Assets Depreciated Furniture and Fixtures $ 9,539 $ 0 $ 0 $ 9,539 Office Equipment 19,679 0 3,364 16,315 Communications Equipment 525,850 0 34,649 491,201 Vehicles 41,950 0 0 41,950 Mapping 47,377 0 0 47,377 Leasehold Improvements 25,070 0 0 25,070

$ 669,466 $ 0 $ 38,013 $ 631,453

Accumulated Depreciation Furniture and Fixtures $ (5,423) $ (1,357) $ 0 $ (6,779) Office Equipment (18,532) (765) 3,364 (15,933) Communications Equipment (259,104) (40,393) 19,057 (280,440) Vehicles (38,950) 0 0 (38,950) Mapping (520) (4,738) 0 (5,257) Leasehold Improvements (5,080) (1,399) 0 (6,480)

$ (327,608) $ (48,652) $ 22,421 $ (353,839)

Total $ 341,858 $ (48,652) $ (15,592) $ 277,614

E. Pension Plan Plan Description

Employees of the district are members of the Political Subdivision Pension Plan (PSPP), an agent multiple-employer defined benefit pension plan administered by the Tennessee Consolidated Retirement System (TCRS). TCRS provides retirement benefits as well as death and disability benefits. Benefits are determined by a formula using the member's 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. A reduced retirement benefit is available to vested members at the age of 55. Disability benefits are available to active members with five years of service who become disabled and cannot engage in gainful employment. There is no service requirement for disability that is the result of an accident or injury

75

occurring while the member was in the performance of duty. Members joining the system after July 1, 1979, become vested after five years of service, and members joining prior to July 1, 1979, were vested after four years of service. Benefit provisions are established in the state statute found in Title 8, Chapters 34-37 of Tennessee Code Annotated. State statutes are amended by the Tennessee General Assembly. Political subdivisions such as the district participate in the TCRS as individual entities and are liable for all costs associated with the operation and administration of their plan. Benefit improvements are not applicable to a political subdivision unless approved by the chief governing body. The TCRS issues a publicly available financial report that includes financial statements and required supplementary information for the PSPP. That report may be obtained by writing to the Tennessee Treasury Department, Consolidated Retirement System, 10th Floor, Andrew Jackson Building, Nashville, TN 37243-0230 or can be accessed at http://tn.gov/treasury/tcrs/PS/. Funding Policy

The district requires employees to contribute five percent or their earnable compensation. The district is required to contribute at an actuarially determined rate; the rate for the fiscal year ended June 30, 2012, was 9.9 percent of annual covered payroll. The contribution requirement of plan members is set by state statute. The contribution requirement for the district is established and may be amended by the TCRS Board of Trustees. Annual Pension Cost For the year ended June 30, 2012, the district’s annual pension cost of $34,867 to TCRS was equal to the district's required and actual contributions. The required contribution was determined as part of the July 1, 2009, actuarial valuation using the frozen entry age actuarial cost method. Significant actuarial assumptions used in the valuation include: (a) rate of return on investment of present and future assets of 7.5 percent a year compounded annually, (b) projected three percent annual rate of inflation, (c) projected salary increases of 4.75 percent (graded) annual rate (no explicit assumption is made regarding the portion attributable to the effects of inflation on salaries), (d) projected 3.5 percent annual increase in the Social Security wage base, and (e) projected postretirement increases of 2.5 percent annually. The actuarial value of assets was determined using techniques that smooth the effect of short-term volatility in the market value of total investments over a ten-year period. The district's unfunded actuarial accrued liability (UAAL) is being amortized as a level dollar amount on a closed basis. The remaining amortization period at July 1, 2009, was 20 years. An actuarial valuation was performed as of July 1, 2011, which established contribution rates effective July 1, 2012.

76

http://tn.gov/treasury/tcrs/PS/

Trend Information

Annual Percentage NetYear Pension of APC Pension

Ended Cost (APC) Contribution Obligation

6-30-12 $ 34,867 100% $ 06-30-11 33,709 100 06-30-10 37,588 100 0

Funded Status and Funding Progress As of July 1, 2011, the most recent actuarial valuation date, the plan was 76.32 percent funded. The actuarial accrued liability (AAL) for benefits was $.94 million, and the actuarial value of assets was $.71 million, resulting in an UAAL of $.22 million. The covered payroll (annual payroll of active employees covered by the plan) was $.4 million, and the ratio of the UAAL to the covered payroll was 55.82 percent. 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 values of plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits.

F. Risk Management The district 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 district carries commercial insurance for all risks of loss, including general liability and workers' compensation coverage. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years.

G. Subsequent Event On August 31, 2012, the district entered into two contracts totaling $211,853 for the installation of new equipment.

77

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1,03

9$

561,

039

$26

,289

Reap

prai

sal P

rogr

am4,

377

090

55,

282

9,30

59,

305

4,02

3Co

unty

Tru

stee

's O

ffice

263,

543

00

263,

543

271,

095

271,

095

7,55

2Co

unty

Cle

rk's

Offi

ce50

3,57

2(4

50)

322

503,

444

543,

065

543,

065

39,6

21Ad

min

istr

atio

n of

Jus

tice

Circ

uit C

ourt

673,

395

015

,058

688,

453

677,

424

691,

506

3,05

3G

ener

al S

essi

ons

Cour

t34

3,28

50

034

3,28

534

7,74

034

7,74

04,

455

Dru

g Co

urt

1,26

50

01,

265

10,1

9310

,193

8,92

8Ch

ance

ry C

ourt

307,

916

(598

)0

307,

318

309,

247

309,

247

1,92

9Ju

veni

le C

ourt

143,

030

063

514

3,66

514

0,13

414

0,13

4(3

,531

)D

istr

ict A

ttor

ney

Gen

eral

4,82

10

04,

821

5,39

05,

390

569

Prob

ate

Cour

t44

,096

(13,

557)

3,79

434

,333

39,9

7339

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5,64

0O

ther

Adm

inis

trat

ion

of J

ustic

e9,

131

059

49,

725

9,00

09,

000

(725

)Co

urtr

oom

Sec

urity

148,

475

027

,434

175,

909

182,

152

182,

152

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3Pu

blic

Saf

ety

Sher

iff's

Dep

artm

ent

4,23

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3,58

3)10

7,67

14,

307,

556

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9,07

04,

356,

005

48,4

49Sp

ecia

l Pat

rols

156,

349

(4,3

27)

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0,83

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527

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inis

trat

ion

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e Se

xual

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nder

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istr

y3,

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il4,

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)26

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490

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le S

ervi

ces

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026

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053

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(24,

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Civi

l Def

ense

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(13,

916)

7,82

617

6,68

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scue

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ad4,

900

00

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4,90

00

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aste

r Rel

ief

127,

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(18,

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010

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0,00

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er E

mer

genc

y M

anag

emen

t4,

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036

4,89

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,000

14,0

009,

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(Con

tinue

d)

80

Exhi

bit F

-1

Gre

ene

Coun

ty, T

enne

ssee

Sche

dule

of R

even

ues,

Exp

endi

ture

s, a

nd C

hang

esin

Fun

d Ba

lanc

e - A

ctua

l (Bu

dget

ary

Basi

s) a

nd B

udge

tG

ener

al F

und

(Con

t.)

Actu

alVa

rian

ceRe

venu

es/

with

Fin

alAc

tual

Less

:Ad

d:Ex

pend

iture

sBu

dget

-(G

AAP

Encu

mbr

ance

sEn

cum

bran

ces

(Bud

geta

ry

Bud

gete

d Am

ount

sPo

sitiv

eBa

sis)

7/1/

2011

6/30

/201

2Ba

sis)

Ori

gina

lFi

nal

(Neg

ativ

e)

Expe

nditu

res

(Con

t.)Pu

blic

Saf

ety

(Con

t.)In

spec

tion

and

Regu

latio

n$

157,

499

$0

$61

8$

158,

117

$16

4,75

1$

164,

751

$6,

634

Coun

ty C

oron

er/M

edic

al E

xam

iner

82,8

790

082

,879

103,

534

103,

534

20,6

55O

ther

Pub

lic S

afet

y19

70

019

73,

000

3,00

02,

803

Publ

ic H

ealth

and

Wel

fare

Loca

l Hea

lth C

ente

r55

6,15

5(1

74)

15,2

2057

1,20

157

7,08

958

1,83

310

,632

Rabi

es a

nd A

nim

al C

ontr

ol15

7,32

80

3,94

016

1,26

816

3,89

016

5,19

53,

927

Ambu

lanc

e/Em

erge

ncy

Med

ical

Ser

vice

s3,

249,

624

(681

)5,

397

3,25

4,34

03,

181,

952

3,27

6,50

422

,164

Alco

hol a

nd D

rug

Prog

ram

s10

,088

00

10,0

8811

,989

11,9

891,

901

Oth

er L

ocal

Hea

lth S

ervi

ces

305,

924

00

305,

924

375,

000

375,

000

69,0

76Ap

prop

riat

ion

to S

tate

67,0

000

067

,000

67,0

0067

,000

0W

aste

Pic

kup

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94(9

99)

107

90,0

0290

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100,

095

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cial

, Cul

tura

l, an

d Re

crea

tiona

l Ser

vice

sLi

brar

ies

84,5

000

084

,500

84,5

0084

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0Ag

ricu

lture

and

Nat

ural

Res

ourc

esAg

ricu

lture

Ext

ensi

on S

ervi

ce10

9,74

60

837

110,

583

122,

762

122,

762

12,1

79Fo

rest

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vice

1,47

00

01,

470

1,47

01,

470

0So

il Co

nser

vatio

n89

,072

00

89,0

7289

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89,8

8080

8O

ther

Ope

ratio

nsTo

uris

m85

,917

00

85,9

1783

,631

83,6

31(2

,286

)In

dust

rial

Dev

elop

men

t85

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00

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83,6

31(2

,286

)Ai

rpor

t30

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00

30,3

8030

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30,3

800

Vete

rans

' Ser

vice

s69

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00

69,1

8775

,675

75,6

756,

488

Oth

er C

harg

es5,

955

00

5,95

55,

955

5,95

50

Cont

ribu

tions

to O

ther

Age

ncie

s31

4,18

00

031

4,18

023

6,18

031

3,68

0(5

00)

(Con

tinue

d)

81

Exhi

bit F

-1

Gre

ene

Coun

ty, T

enne

ssee

Sche

dule

of R

even

ues,

Exp

endi

ture

s, a

nd C

hang

esin

Fun

d Ba

lanc

e - A

ctua

l (Bu

dget

ary

Basi

s) a

nd B

udge

tG

ener

al F

und

(Con

t.)

Actu

alVa

rian

ceRe

venu

es/

with

Fin

alAc

tual

Less

:Ad

d:Ex

pend

iture

sBu

dget

-(G

AAP

Encu

mbr

ance

sEn

cum

bran

ces

(Bud

geta

ry

Bud

gete

d Am

ount

sPo

sitiv

eBa

sis)

7/1/

2011

6/30

/201

2Ba

sis)

Ori

gina

lFi

nal

(Neg

ativ

e)

Expe

nditu

res

(Con

t.)O

ther

Ope

ratio

ns (C

ont.)

Mis

cella

neou

s$

173,

659

$0

$4,

420

$17

8,07

9$

219,

750

$21

9,75

0$

41,6

71To

tal E

xpen

ditu

res

$20

,239

,974

$(2

42,1

79)

$59

3,11

2$

20,5

90,9

07$

20,4

88,6

99$

21,2

28,6

58$

637,

751

Exce

ss (D

efic

ienc

y) o

f Rev

enue

sO

ver E

xpen

ditu

res

$(1

44,8

20)

$24

2,17

9$

(593

,112

)$

(495

,753

)$

(1,3

05,3

23)

$(1

,422

,468

)$

926,

715

Oth

er F

inan

cing

Sou

rces

(Use

s)In

sura

nce

Reco

very

$6,

244

$0

$0

$6,

244

$0

$6,

168

$76

Tran

sfer

s O

ut(8

6,91

4)0

0(8

6,91

4)0

(86,

914)

0To

tal O

ther

Fin

anci

ng S

ourc

es (U

ses)

$(8

0,67

0)$

0$

0$

(80,

670)

$0

$(8

0,74

6)$

76

Net

Cha

nge

in F

und

Bala

nce

$(2

25,4

90)

$24

2,17

9$

(593

,112

)$

(576

,423

)$

(1,3

05,3

23)

$(1

,503

,214

)$

926,

791

Fund

Bal

ance

, Jul

y 1,

201

15,

208,

960

(242

,179

)0

4,96

6,78

14,

871,

084

4,87

1,08

495

,697

Fund

Bal

ance

, Jun

e 30

, 201

2$

4,98

3,47

0$

0$

(593

,112

)$

4,39

0,35

8$

3,56

5,76

1$

3,36

7,87

0$

1,02

2,48

8

82

Exhibit F-2

Greene County, TennesseeSchedule of Revenues, Expenditures, and Changes

in Fund Balance - Actual and BudgetSpecial Purpose FundFor the Year Ended June 30, 2012

Variancewith FinalBudget -

Budgeted Amounts PositiveActual Original Final (Negative)

RevenuesLocal Taxes $ 347,358 $ 343,609 $ 343,609 $ 3,749Charges for Current Services 0 300,000 300,000 (300,000)Other Local Revenues 12,513 12,913 12,913 (400)State of Tennessee 1,107,326 1,039,792 1,039,792 67,534Federal Government 84,375 0 0 84,375

Total Revenues $ 1,551,572 $ 1,696,314 $ 1,696,314 $ (144,742)

ExpendituresGeneral Government

Risk Management $ 1,432,837 $ 1,670,083 $ 1,670,083 $ 237,246Total Expenditures $ 1,432,837 $ 1,670,083 $ 1,670,083 $ 237,246

Excess (Deficiency) of RevenuesOver Expenditures $ 118,735 $ 26,231 $ 26,231 $ 92,504

Other Financing Sources (Uses)Insurance Recovery $ 6,050 $ 0 $ 0 $ 6,050

Total Other Financing Sources (Uses) $ 6,050 $ 0 $ 0 $ 6,050

Net Change in Fund Balance $ 124,785 $ 26,231 $ 26,231 $ 98,554Fund Balance, July 1, 2011 1,169,758 1,009,788 1,009,788 159,970

Fund Balance, June 30, 2012 $ 1,294,543 $ 1,036,019 $ 1,036,019 $ 258,524

83

Exhi

bit F

-3

Gre

ene

Coun

ty, T

enne

ssee

Sche

dule

of R

even

ues,

Exp

endi

ture

s, a

nd C

hang

esin

Fun

d Ba

lanc

e - A

ctua

l (Bu

dget

ary

Basi

s) a

nd B

udge

tH

ighw

ay/P

ublic

Wor

ks F

und

For t

he Y

ear E

nded

Jun

e 30

, 201

2

Actu

alVa

rian

ceRe

venu

es/

with

Fin

alAc

tual

Less

:Ad

d:Ex

pend

iture

sBu

dget

-(G

AAP

Encu

mbr

ance

sEn

cum

bran

ces

(Bud

geta

ryPo

sitiv

eBa

sis)

7/1/

2011

6/30

/201

2Ba

sis)

Ori

gina

lFi

nal

(Neg

ativ

e)

Reve

nues

Loca

l Tax

es$

2,50

6,71

1$

0$

0$

2,50

6,71

1$

2,49

0,01

8$

2,52

3,74

8$

(17,

037)

Oth

er L

ocal

Rev

enue

s50

,545

00

50,5

4516

,103

16,1

0334

,442

Stat

e of

Ten

ness

ee2,

211,

801

00

2,21

1,80

12,

890,

520

2,89

0,52

0(6

78,7

19)

Fede

ral G

over

nmen

t79

3,68

20

079

3,68

213

,928

274,

668

519,

014

Oth

er G

over

nmen

ts a

nd C

itize

ns G

roup

s35

,236

00

35,2

360

035

,236

Tota

l Rev

enue

s$

5,59

7,97

5$

0$

0$

5,59

7,97

5$

5,41

0,56

9$

5,70

5,03

9$

(107

,064

)

Expe

nditu

res

Hig

hway

sAd

min

istr

atio

n$

324,

972

$(5

0)$

1,35

5$

326,

277

$32

7,42

9$

329,

080

$2,

803

Hig

hway

and

Bri

dge

Mai

nten

ance

3,51

4,69

2(2

34,0

00)

261,

943

3,54

2,63

54,

911,

655

4,78

2,79

91,

240,

164

Ope

ratio

n an

d M

aint

enan

ce o

f Equ

ipm

ent

945,

991

(131

)12

2,00

61,

067,

866

1,06

4,19

01,

158,

175

90,3

09As

phal

t Pla

nt O

pera

tions

139,

884

035

014

0,23

40

150,

590

10,3

56O

ther

Cha

rges

91,2

030

091

,203

199,

795

199,

795

108,

592

Capi

tal O

utla

y23

1,71

1(8

,455

)45

4,52

467

7,78

043

0,00

069

0,74

012

,960

Tota

l Exp

endi

ture

s$

5,24

8,45

3$

(242

,636

)$

840,

178

$5,

845,

995

$6,

933,

069

$7,

311,

179

$1,

465,

184

Exce

ss (D

efic

ienc

y) o

f Rev

enue

sO

ver E

xpen

ditu

res

$34

9,52

2$

242,

636

$(8

40,1

78)

$(2

48,0

20)

$(1

,522

,500

)$

(1,6

06,1

40)

$1,

358,

120

Oth

er F

inan

cing

Sou

rces

(Use

s)Tr

ansf

ers

In$

86,9

14$

0$

0$

86,9

14$

0$

86,9

14$

0To

tal O

ther

Fin

anci

ng S

ourc

es (U

ses)

$86

,914

$0

$0

$86

,914

$0

$86

,914

$0

Net

Cha

nge

in F

und

Bala

nce

$43

6,43

6$

242,

636

$(8

40,1

78)

$(1

61,1

06)

$(1

,522

,500

)$

(1,5

19,2

26)

$1,

358,

120

Fund

Bal

ance

, Jul

y 1,

201

13,

077,

065

(242

,636

)0

2,83

4,42

92,

849,

849

2,84

9,84

9(1

5,42

0)

Fund

Bal

ance

, Jun

e 30

, 201

2$

3,51

3,50

1$

0$

(840

,178

)$

2,67

3,32

3$

1,32

7,34

9$

1,33

0,62

3$

1,34

2,70

0

Budg

eted

Am

ount

s

84

Exhibit F-4

Greene County, TennesseeSchedule of Funding Progress – Pension PlanPrimary Government and Discretely Presented Greene County School DepartmentJune 30, 2012

(Dollar amounts in thousands)

ActuarialActuarial Accrued Value of Liability Unfunded

Actuarial Plan (AAL) AAL Covered Valuation Assets Entry Age (UAAL) Payroll

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

7-1-11 $ 48,631 $ 51,200 $ 2,569 94.98 % $ 17,516 14.67 %7-1-09 38,614 41,624 3,010 92.77 17,091 17.61 7-1-07 35,187 38,579 3,392 91.21 15,959 21.25

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

Funded

UAAL as a Percentage

Ratioof Covered

85

Exhibit F-5

Greene County, TennesseeSchedule of Funding Progress – Pension PlanDiscretely Presented Greeneville-Greene County Emergency Communications DistrictJune 30, 2012

Actuarial Actuarial Unfunded UAAL as aActuarial Value of Accrued AAL Funded Covered PercentageValuation Assets Liability (UAAL) Ratio Payroll Payroll

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

7-1-11 $ 714 $ 936 $ 222 76.32 % $ 397 55.82 %7-1-09 527 759 233 69.34 329 70.787-1-07 437 488 51 89.55 287 17.77

(Dollar amounts in thousands)

86

Exhi

bit F

-6

Gre

ene

Coun

ty, T

enne

ssee

Sche

dule

of F

undi

ng P

rogr

ess

– O

ther

Pos

tem

ploy

men

t Ben

efits

Pla

nsPr

imar

y G

over

nmen

t and

Dis

cret

ely

Pres

ente

d G

reen

e Co

unty

Sch

ool D

epar

tmen

tJu

ne 3

0, 2

012

(Dol

lar a

mou

nts

in th

ousa

nds)

Actu

aria

lAc

tuar

ial

Accr

ued

Unf

unde

d Ac

tuar

ial

Valu

e of

Li

abili

tyAA

LFu

nded

Cove

red

Valu

atio

n As

sets

(AAL

)(U

AAL)

Ratio

Payr

oll

Plan

sD

ate

(a)

(b)

(b)-(

a)(a

/b)

(c)

PRIM

ARY

GO

VERN

MEN

T

Com

mer

cial

7-1-

08$

0$

1,72

4 $

1,72

4 0

%$

11,3

80

15%

"7-

1-10

01,

516

1,51

6 0

12,8

75

12Se

lf-In

sure

d7-

1-11

(1)

01,

640

1,64

0 0

12,8

75

13

DIS

CRET

ELY

PRES

ENTE

D G

REEN

E C

OU

NTY

SCH

OO

L D

EPAR

TMEN

T

Loca

l Edu

catio

n G

roup

7

-1-0

90

16,8

78

16,8

78

0 30

,361

56

"7-

1-10

0 16

,920

16

,920

0

30,3

47

56"

7-1-

110

16,5

56

16,5

56

0 32

,070

52

(1) T

hese

am

ount

s ar

e ro

ll-fo

rwar

d am

ount

s fo

r the

Jul

y 1,

201

0, s

tudy

whe

n th

e co

unty

par

ticip

ated

in a

com

mer

cial

heal

th in

sura

nce

plan

. D

urin

g th

e 20

11-1

2 ye

ar, t

he co

unty

est

ablis

hed

a se

lf-in

sure

d he

alth

pro

gram

. A

valu

atio

n w

ill b

e pe

rfor

med

for t

he s

elf-i

nsur

ed h

ealth

pro

gram

as

of J

uly

1, 2

012.

UA

AL

as a

Pe

rcen

tage

of C

over

edPa

yrol

l((b

-a)/c

)

87

GREENE COUNTY, TENNESSEE NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION


A. BUDGETARY INFORMATION

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 Greene 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, County Mayor/Executive, County Attorney, Election Commission, etc.). Management may make revisions within major categories, but only the Greene 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 generally accepted accounting principles (GAAP), except instances in which encumbrances are treated as budgeted expenditures. The difference between the budgetary basis and the GAAP basis is presented on the face of each budgetary schedule.

At June 30, 2012, Greene County reported the following significant encumbrances: Fund Purpose Amount

Primary Government: Major Fund: General Building improvements $ 248,293 Highway/Public Works Highway equipment 510,841 " Bridge construction 234,000

B. EXPENDITURES EXCEEDED APPROPRIATIONS

Expenditures exceeded appropriations approved by the County Commission in the following major appropriation categories (the legal level of control) in the General Fund.

88

AmountMajor Appropriation Category Overspent

Juvenile Court $ 3,531 Other Administration of Justice 725 Juvenile Services 24,079 Tourism 2,286 Industrial Development 2,286 Contributions to Other Agencies 500

Expenditures that exceed appropriations are a violation of state statutes. These expenditures in excess of appropriations were funded by excess appropriations in other major categories of expenditures.

89

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

90

Nonmajor Governmental Funds

Special Revenue Funds _________________

Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects.

_________________ Solid Waste/Sanitation Fund – The Solid Waste/Sanitation Fund is used to account for transactions relating to garbage pickup and contracted disposal services. Drug Control Fund – The Drug Control Fund is used to account for revenues received from drug-related fines, forfeitures, and seizures. District Attorney General Fund – The District Attorney General Fund is used to account for revenues received for the benefit of the Office of District Attorney General. 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, and sheriff.

91

Debt Service Fund _________________

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

_________________ General Debt Service Fund – The General Debt Service Fund is used to account for the accumulation of resources for, and the payment of, debt principal, interest, and related costs.

Capital Projects Funds _________________

Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

_________________ General Capital Projects Fund – The General Capital Projects Fund is used to account for general capital expenditures of the county and the issuance of capital outlay notes and bonds contributed to the School Department. HUD Grant Projects Fund – The HUD Grant Projects Fund is used to account for the expenditures of the HOME Investment Partnerships Program. Highway Capital Projects Fund – The Highway Capital Projects Fund is used to account for to the acquisition or construction of highway capital assets. Other Capital Projects Fund – The Other Capital Projects Fund is used to account for funds held for recreation and performing arts capital expenditures.

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er F

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t Iss

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t Iss

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118,

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ents

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t Esc

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nt(6

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es (U

ses)

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84,8

22

Net

Cha

nge

in F

und

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nces

$(2

08,9

68)

$(1

,419

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)$

(1,6

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24)

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)$

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96,6

03)

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)Fu

nd B

alan

ce, J

uly

1, 2

011

528,

851

1,48

9,33

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152,

441

6,51

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97,

805,

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Fund

Bal

ance

, Jun

e 30

, 201

2$

319,

883

$69

,959

$3,

200,

614

$14

7,03

3$

3,41

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6$

4,52

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9

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t Se

rvic

e Fu

ndCa

pita

l Pro

ject

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nds

100

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ibit

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ene

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ness

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le o

f Rev

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xpen

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res,

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nges

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und

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ance

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ctua

l (B

udge

tary

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is) a

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udge

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lid W

aste

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itatio

n Fu

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r the

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r End

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une

30, 2

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ual

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with

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alA

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ss:

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res

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get -

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umbr

ance

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ncum

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geta

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Rev

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axes

$1,

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$0

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$1,

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163,

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150,

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ther

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al R

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175,

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00

175,

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164,

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164,

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ate

of T

enne

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28,7

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51,3

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l Rev

enue

s$

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tion

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$1,

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04)

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tions

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icie

ncy)

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even

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r Exp

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s$

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304

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91)

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(70,

327)

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0

Net

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nge

in F

und

Bal

ance

$30

,010

$30

4$

(291

)$

30,0

23$

(60,

327)

$(7

0,32

7)$

100,

350

Fund

Bal

ance

, Jul

y 1,

201

135

8,05

0(3

04)

035

7,74

624

5,95

324

5,95

311

1,79

3

Fund

Bal

ance

, Jun

e 30

, 201

2$

388,

060

$0

$(2

91)

$38

7,76

9$

185,

626

$17

5,62

6$

212,

143

Bud

gete

d A

mou

nts

101

Exhi

bit G

-4

Gre

ene

Coun

ty, T

enne

ssee

Sche

dule

of R

even

ues,

Exp

endi

ture

s, a

nd C

hang

esin

Fun

d Ba

lanc

e - A

ctua

l (Bu

dget

ary

Basi

s) a

nd B

udge

tD

rug

Cont

rol F

und

For t

he Y

ear E

nded

Jun

e 30

, 201

2

Actu

alVa

rian

ceRe

venu

es/

with

Fin

alAc

tual

Less

:Ex

pend

iture

sBu

dget

-(G

AAP

Encu

mbr

ance

s(B

udge

tary

Posi

tive

Basi

s)7/

1/20

11Ba

sis)

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gina

lFi

nal

(Neg

ativ

e)

Reve

nues

Fine

s, F

orfe

iture

s, a

nd P

enal

ties

$28

,877

$0

$28

,877

$32

,000

$32

,000

$(3

,123

)O

ther

Loc

al R

even

ues

700

070

01,

000

1,70

0(1

,000

)O

ther

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ernm

ents

and

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zens

Gro

ups

10,1

000

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000

100

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00To

tal R

even

ues

$39

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$0

$39

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$33

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nditu

res

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ic S

afet

ySh

eriff

's D

epar

tmen

t$

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7$

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Enfo

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ent

61,5

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66,8

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l Exp

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ture

s$

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00$

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00$

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2

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ss (D

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enue

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ver E

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res

$(3

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(21,

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3,00

0)$

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000)

$11

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Net

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nge

in F

und

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nce

$(3

0,77

8)$

8,91

7$

(21,

861)

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3,00

0)$

(33,

000)

$11

,139

Fund

Bal

ance

, Jul

y 1,

201

121

5,27

7(8

,917

)20

6,36

021

6,81

721

6,81

7(1

0,45

7)

Fund

Bal

ance

, Jun

e 30

, 201

2$

184,

499

$0

$18

4,49

9$

183,

817

$18

3,81

7$

682

Budg

eted

Am

ount

s

102

Exhibit G-5


in Fund Balance - Actual and BudgetGeneral Debt Service FundFor the Year Ended June 30, 2012

Variancewith FinalBudget -Positive

Actual Original Final (Negative)

RevenuesLocal Taxes $ 1,360,633 $ 1,307,852 $ 1,307,852 $ 52,781Other Local Revenues 3,498 4,145 4,145 (647)

Total Revenues $ 1,364,131 $ 1,311,997 $ 1,311,997 $ 52,134

ExpendituresPrincipal on Debt

General Government $ 580,000 $ 0 $ 580,000 $ 0Highways and Streets 330,000 275,000 330,000 0

Interest on DebtGeneral Government 92,800 806,240 93,657 857Highways and Streets 552,645 552,834 630,417 77,772

Other Debt ServiceGeneral Government 20,148 20,000 20,000 (148)Highways and Streets 112,966 0 112,966 0

Total Expenditures $ 1,688,559 $ 1,654,074 $ 1,767,040 $ 78,481

Excess (Deficiency) of RevenuesOver Expenditures $ (324,428) $ (342,077) $ (455,043) $ 130,615

Other Financing Sources (Uses)Refunding Debt Issued $ 6,665,000 $ 0 $ 6,662,504 $ 2,496Premiums on Debt Issued 118,408 0 118,408 0Payments to Refunded Debt Escrow Agent (6,667,948) 0 (6,667,947) (1)

Total Other Financing Sources (Uses) $ 115,460 $ 0 $ 112,965 $ 2,495

Net Change in Fund Balance $ (208,968) $ (342,077) $ (342,078) $ 133,110Fund Balance, July 1, 2011 528,851 462,179 462,179 66,672

Fund Balance, June 30, 2012 $ 319,883 $ 120,102 $ 120,101 $ 199,782

Budgeted Amounts

103

Major Governmental Fund

Education Debt Service Fund __________________________

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

__________________________

104

Exhibit H


in Fund Balance - Actual and BudgetEducation Debt Service FundFor the Year Ended June 30, 2012



RevenuesLocal Taxes $ 2,496,983 $ 2,365,539 $ 2,365,539 $ 131,444Other Local Revenues 18,410 21,815 21,815 (3,405)Other Governments and Citizens Groups 334,761 250,000 250,000 84,761

Total Revenues $ 2,850,154 $ 2,637,354 $ 2,637,354 $ 212,800

ExpendituresPrincipal on Debt

Education $ 1,733,221 $ 1,733,225 $ 1,733,225 $ 4Interest on Debt

Education 930,632 936,791 936,791 6,159Other Debt Service

Education 46,603 53,500 53,500 6,897Total Expenditures $ 2,710,456 $ 2,723,516 $ 2,723,516 $ 13,060

Excess (Deficiency) of RevenuesOver Expenditures $ 139,698 $ (86,162) $ (86,162) $ 225,860

Other Financing Sources (Uses)Transfers In $ 30,638 $ 30,637 $ 30,637 $ 1

Total Other Financing Sources (Uses) $ 30,638 $ 30,637 $ 30,637 $ 1

Net Change in Fund Balance $ 170,336 $ (55,525) $ (55,525) $ 225,861Fund Balance, July 1, 2011 827,353 1,251,405 1,251,405 (424,052)

Fund Balance, June 30, 2012 $ 997,689 $ 1,195,880 $ 1,195,880 $ (198,191)

Budgeted Amounts

105

Fiduciary Funds ____________________

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

____________________ Cities - Sales Tax Fund – The Cities - Sales Tax Fund is used to account for the second half of the sales tax revenues collected inside incorporated cities of the county. These revenues are received by the county from the State of Tennessee and forwarded to the various cities on a monthly basis.

City School ADA - Greeneville Fund – The City School ADA - Greeneville Fund is used to account for the city school system’s share of education revenues collected by the county that must be apportioned to the system on an average daily attendance basis. These collections are remitted to the city school system on a monthly basis. Constitutional Officers - Agency Fund – The Constitutional Officers - Agency Fund is used to account for amounts collected in an agency capacity by the county clerk, circuit and general sessions courts clerk, clerk and master, register, and sheriff. Such collections include amounts due the state, cities, other county funds, litigants, heirs, and others. Judicial District Drug Fund – The Judicial District Drug Fund is used to account for transactions of the Third Judicial District Drug Task Force, a joint venture of the various law enforcement agencies in the district.

106

Exhi

bit I

-1

Gre

ene

Cou

nty,

Ten

ness

eeC

ombi

ning

Sta

tem

ent o

f Fid

ucia

ry A

sset

s an

d Li

abili

ties

Fidu

ciar

y Fu

nds

June

30,

201

2

City

Con

stitu

-C

ities

-Sc

hool

tiona

lJu

dici

alSa

les

AD

A -

Offi

cers

-D

istr

ict

Tax

Gre

enev

ille

Age

ncy

Dru

gTo

tal

ASS

ETS

Cas

h$

0$

0$

2,11

4,54

2$

0$

2,11

4,54

2E

quity

in P

oole

d C

ash

and

Inve

stm

ents

00

049

,390

49,3

90A

ccou

nts

Rec

eiva

ble

00

239

2,77

93,

018

Due

from

Oth

er G

over

nmen

ts1,

194,

421

442,

969

00

1,63

7,39

0Pr

oper

ty T

axes

Rec

eiva

ble

03,

141,

577

00

3,14

1,57

7A

llow

ance

for

Unc

olle

ctib

le P

rope

rty

Taxe

s0

(94,

886)

00

(94,

886)

Tota

l Ass

ets

$1,

194,

421

$3,

489,

660

$2,

114,

781

$52

,169

$6,

851,

031

LIA

BIL

ITIE

S

Acc

ount

s Pa

yabl

e$

0$

0$

0$

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3$

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3D

ue to

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er T

axin

g U

nits

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00

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ue to

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gant

s, H

eirs

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ers

00

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nt V

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06

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ies

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$52

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$6,

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031

Age

ncy

Fund

s

107

Exhibit I-2

Greene County, TennesseeCombining Statement of Changes in Assets and Liabilities - All Agency FundsFor the Year Ended June 30, 2012

Beginning Ending Balance Additions Deductions Balance

Cities - Sales Tax Fund Assets Equity in Pooled Cash and Investments $ 0 $ 6,982,410 $ 6,982,410 $ 0 Due from Other Governments 1,172,820 1,194,421 1,172,820 1,194,421

Total Assets $ 1,172,820 $ 8,176,831 $ 8,155,230 $ 1,194,421

Liabilities Due to Other Taxing Units $ 1,172,820 $ 8,176,831 $ 8,155,230 $ 1,194,421

Total Liabilities $ 1,172,820 $ 8,176,831 $ 8,155,230 $ 1,194,421

City School ADA - Greeneville Fund Assets Equity in Pooled Cash and Investments $ 0 $ 4,991,213 $ 4,991,213 $ 0 Due from Other Governments 417,322 442,969 417,322 442,969 Property Taxes Receivable 2,395,603 3,141,577 2,395,603 3,141,577 Allowance for Uncollectible Property Taxes (79,163) (94,886) (79,163) (94,886)

Total Assets $ 2,733,762 $ 8,480,873 $ 7,724,975 $ 3,489,660

Liabilities Due to Other Taxing Units $ 2,733,762 $ 8,480,873 $ 7,724,975 $ 3,489,660


Constitutional Officers - Agency Fund Assets Cash $ 2,002,800 $ 13,219,945 $ 13,108,203 $ 2,114,542 Accounts Receivable 239 0 0 239

Total Assets $ 2,003,039 $ 13,219,945 $ 13,108,203 $ 2,114,781

Liabilities Due to Litigants, Heirs, and Others $ 2,003,039 $ 13,219,945 $ 13,108,203 $ 2,114,781


(Continued)

108

Exhibit I-2

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

Beginning Ending Balance Additions Deductions Balance

Judicial District Drug Assets

Equity in Pooled Cash and Investments $ 362 $ 213,172 $ 164,144 $ 49,390 Accounts Receivable 0 2,779 0 2,779

Due from Other Governments 12,400 0 12,400 0

Total Assets $ 12,762 $ 215,951 $ 176,544 $ 52,169

LiabilitiesAccounts Payable $ 4,453 $ 2,163 $ 4,453 $ 2,163Due to Other Funds 6,739 0 6,739 0Due to Cities 929 0 929 0Due to Other Taxing Units 641 0 641 0Due to Joint Ventures 0 213,788 163,782 50,006

Total Liabilities $ 12,762 $ 215,951 $ 176,544 $ 52,169

Totals - All Agency Funds Assets Cash $ 2,002,800 $ 13,219,945 $ 13,108,203 $ 2,114,542 Accounts Receivable 239 2,779 0 3,018 Equity in Pooled Cash and Investments 362 12,186,795 12,137,767 49,390 Due from Other Governments 1,602,542 1,637,390 1,602,542 1,637,390 Property Taxes Receivable 2,395,603 3,141,577 2,395,603 3,141,577 Allowance for Uncollectible Property Taxes (79,163) (94,886) (79,163) (94,886)

Total Assets $ 5,922,383 $ 30,093,600 $ 29,164,952 $ 6,851,031

Liabilities Accounts Payable $ 4,453 $ 2,163 $ 4,453 $ 2,163 Due to Other Funds 6,739 0 6,739 0 Due to Cities 929 0 929 0 Due to Other Taxing Units 3,907,223 16,657,704 15,880,846 4,684,081 Due to Litigants, Heirs, and Others 2,003,039 13,219,945 13,108,203 2,114,781 Due to Joint Ventures 0 213,788 163,782 50,006


109

Greene County School Department __________________________

This section presents the combining and individual fund financial statements for the Greene County School Department, a discretely presented component unit. The School Department uses a General Fund, two Special Revenue Funds, and one Capital Projects Fund.

__________________________

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.

110

Exhi

bit J

-1

Gre

ene

Coun

ty, T

enne

ssee

Stat

emen

t of A

ctiv

ities

Dis

cret

ely

Pres

ente

d G

reen

e Co

unty

Sch

ool D

epar

tmen

tFo

r th

e Ye

ar E

nded

Jun

e 30

, 201

2

Net

(Exp

ense

)Re

venu

e an

dPr

ogra

m R

even

ues

Chan

ges

inO

pera

ting

Net

Ass

ets

Char

ges

Gra

nts

Tota

lfo

ran

dG

over

nmen

tal

Func

tions

/Pro

gram

sEx

pens

esSe

rvic

esCo

ntri

butio

nsAc

tiviti

es

Gov

ernm

enta

l Act

iviti

es:

Ins

truc

tion

$35

,283

,413

$0

$5,

070,

361

$(3

0,21

3,05

2) S

uppo

rt S

ervi

ces

15,3

80,6

6435

6,47

70

(15,

024,

187)

Ope

ratio

n of

Non

-Ins

truc

tiona

l Ser

vice

s6,

040,

676

1,41

9,80

84,

929,

879

309,

011

Deb

t Ser

vice

219,

204

00

(219

,204

)

Tota

l Gov

ernm

enta

l Act

iviti

es$

56,9

23,9

57$

1,77

6,28

5$

10,0

00,2

40$

(45,

147,

432)

Gen

eral

Rev

enue

s: T

axes

:

Pro

pert

y Ta

xes

Levi

ed fo

r G

ener

al P

urpo

ses

$5,

296,

007

L

ocal

Opt

ion

Sale

s Ta

x5,

218,

636

O

ther

Loc

al T

axes

3,12

6 G

rant

s an

d Co

ntri

butio

ns N

ot R

estr

icte

d fo

r Sp

ecifi

c Pr

ogra

ms

31,8

91,7

36 U

nres

tric

ted

Inve

stm

ent I

ncom

e43

,735

Mis

cella

neou

s32

6,95

4To

tal G

ener

al R

even

ues

$42

,780

,194

Chan

ge in

Net

Ass

ets

$(2

,367

,238

)N

et A

sset

s, J

uly

1, 2

011

38,0

46,4

77

Net

Ass

ets,

Jun

e 30

, 201

2$

35,6

79,2

39

111

Exhibit J-2

Greene County, TennesseeBalance Sheet - Governmental FundsDiscretely Presented Greene County School DepartmentJune 30, 2012

Other TotalGeneral School Govern- Govern-Purpose Federal mental mentalSchool Projects Funds Funds

ASSETS

Cash $ 765,517 $ 0 $ 1,200 $ 766,717Equity in Pooled Cash and Investments 2,551,850 259,703 1,525,728 4,337,281Accounts Receivable 28,686 0 0 28,686Due from Other Governments 1,624,000 3,732 0 1,627,732Due from Other Funds 9,739 0 0 9,739Property Taxes Receivable 5,644,960 0 0 5,644,960Allowance for Uncollectible Property Taxes (188,597) 0 0 (188,597)

Total Assets $ 10,436,155 $ 263,435 $ 1,526,928 $ 12,226,518

LIABILITIES AND FUND BALANCES

LiabilitiesAccounts Payable $ 3,543 $ 0 $ 0 $ 3,543Due to Other Funds 0 9,739 0 9,739Due to Primary Government 219,204 0 0 219,204Other Current Liabilities 760,517 0 0 760,517Deferred Revenue - Current Property Taxes 5,266,400 0 0 5,266,400Deferred Revenue - Delinquent Property Taxes 135,620 0 0 135,620Other Deferred Revenues 462,500 0 0 462,500

Total Liabilities $ 6,847,784 $ 9,739 $ 0 $ 6,857,523

Fund BalancesRestricted:

Restricted for Education $ 47,731 $ 53,696 $ 1,193,235 $ 1,294,662Restricted for Capital Projects 0 0 333,693 333,693

Committed:Committed for Education 37,386 200,000 0 237,386

Assigned:Assigned for Education 660,617 0 0 660,617

Unassigned 2,842,637 0 0 2,842,637Total Fund Balances $ 3,588,371 $ 253,696 $ 1,526,928 $ 5,368,995

Total Liabilities and Fund Balances $ 10,436,155 $ 263,435 $ 1,526,928 $ 12,226,518

Major FundsNonmajor

Funds

112

Exhibit J-3

Greene County, TennesseeReconciliation of the Balance Sheet of Governmental Funds to the Statement of Net AssetsDiscretely Presented Greene County School DepartmentJune 30, 2012

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

Total fund balances - balance sheet - governmental funds (Exhibit J-2) $ 5,368,995

(1) Capital assets used in governmental activities are not financial resources and therefore are not reported inthe governmental funds.

Add: land $ 886,166Add: construction in progress 251,959Add: buildings and improvements net of accumulated depreciation 27,921,428Add: other capital assets net of accumulated depreciation 4,453,786 33,513,339

(2) Long-term liabilities are not due and payablein the current period and therefore are not reportedin the governmental funds.

Less: compensated absences payable $ (143,741)Less: other postemployment benefits liability (3,232,368)Less: termination benefits (425,106) (3,801,215)

(3) Other long-term assets are not available to pay forcurrent-period expenditures and therefore are deferredin the governmental funds. 598,120

Net assets of governmental activities (Exhibit A) $ 35,679,239

113

Exhibit J-4

Greene County, TennesseeStatement of Revenues, Expenditures,

and Changes in Fund Balances -Governmental Funds

Discretely Presented Greene County School DepartmentFor the Year Ended June 30, 2012

Other General School Govern- Total Purpose Federal mental Governmental School Projects Funds Funds

RevenuesLocal Taxes $ 10,760,484 $ 0 $ 0 $ 10,760,484Licenses and Permits 2,487 0 0 2,487Charges for Current Services 357,913 0 1,418,372 1,776,285Other Local Revenues 939,713 0 896 940,609State of Tennessee 32,586,016 0 38,301 32,624,317Federal Government 104,717 6,066,556 2,829,894 9,001,167

Total Revenues $ 44,751,330 $ 6,066,556 $ 4,287,463 $ 55,105,349

ExpendituresCurrent:

Instruction $ 26,592,309 $ 5,120,925 $ 0 $ 31,713,234Support Services 15,259,484 881,399 0 16,140,883Operation of Non-Instructional Services 1,823,527 0 4,181,306 6,004,833Capital Outlay 380,047 0 0 380,047

Debt Service:Other Debt Service 219,204 0 0 219,204

Capital Projects 0 0 1,041,665 1,041,665Total Expenditures $ 44,274,571 $ 6,002,324 $ 5,222,971 $ 55,499,866

Excess (Deficiency) of RevenuesOver Expenditures $ 476,759 $ 64,232 $ (935,508) $ (394,517)

Other Financing Sources (Uses)Transfers In $ 35,421 $ 0 $ 585,652 $ 621,073Transfers Out (585,652) (22,072) (13,349) (621,073)

Total Other Financing Sources (Uses) $ (550,231) $ (22,072) $ 572,303 $ 0

Net Change in Fund Balances $ (73,472) $ 42,160 $ (363,205) $ (394,517)Fund Balance, July 1, 2011 3,661,843 211,536 1,890,133 5,763,512

Fund Balance, June 30, 2012 $ 3,588,371 $ 253,696 $ 1,526,928 $ 5,368,995

Major FundsNonmajor

Funds

114

Exhibit J-5

Greene County, TennesseeReconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of ActivitiesDiscretely Presented Greene County School DepartmentFor the Year Ended June 30, 2012

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

Net change in fund balances - total governmental funds (Exhibit J-4) $ (394,517)

(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 $ 1,351,481 Less: current-year depreciation expense (2,201,783) (850,302)

(2) Revenues in the statement of activities that do not provide currentfinancial resources are not reported as revenues in the funds.

Add: deferred delinquent property taxes and other deferred June 30, 2012 $ 598,120Less: deferred delinquent property taxes and other deferred June 30, 2011 (605,973) (7,853)

(3) Some expenses reported in the statement of activities do not requirethe use of current financial resources and therefore are not reportedas expenditures in the governmental funds. Change in other postemployment benefits liability $ (989,426) Change in compensated absences payable (80,638) Change in termination benefits (44,502) (1,114,566)

Change in net assets of governmental activities (Exhibit B) $ (2,367,238)

115

Exhibit J-6Greene County, TennesseeCombining Balance Sheet - Nonmajor Governmental FundsDiscretely Presented Greene County School DepartmentJune 30, 2012

TotalEducation Nonmajor

Central Capital GovernmentalCafeteria Projects Funds

ASSETS

Cash $ 1,200 $ 0 $ 1,200Equity in Pooled Cash and Investments 1,192,035 333,693 1,525,728

Total Assets $ 1,193,235 $ 333,693 $ 1,526,928

FUND BALANCES

Restricted:Restricted for Education $ 1,193,235 $ 0 $ 1,193,235Restricted for Capital Projects 0 333,693 333,693

Total Fund Balances $ 1,193,235 $ 333,693 $ 1,526,928

Special Revenue

Fund

Capital Projects

Fund

116

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

and Changes in Fund Balances -Nonmajor Governmental Funds

Discretely Presented Greene County School DepartmentFor the Year Ended June 30, 2012

Total Education Nonmajor

Central Capital Governmental Cafeteria Projects Funds

RevenuesCharges for Current Services $ 1,418,372 $ 0 $ 1,418,372Other Local Revenues 896 0 896State of Tennessee 38,301 0 38,301Federal Government 2,829,894 0 2,829,894

Total Revenues $ 4,287,463 $ 0 $ 4,287,463

ExpendituresCurrent:

Operation of Non-Instructional Services $ 4,181,306 $ 0 $ 4,181,306Capital Projects 0 1,041,665 1,041,665

Total Expenditures $ 4,181,306 $ 1,041,665 $ 5,222,971

Excess (Deficiency) of RevenuesOver Expenditures $ 106,157 $ (1,041,665) $ (935,508)

Other Financing Sources (Uses)Transfers In $ 0 $ 585,652 $ 585,652Transfers Out 0 (13,349) (13,349)

Total Other Financing Sources (Uses) $ 0 $ 572,303 $ 572,303

Net Change in Fund Balances $ 106,157 $ (469,362) $ (363,205)Fund Balance, July 1, 2011 1,087,078 803,055 1,890,133

Fund Balance, June 30, 2012 $ 1,193,235 $ 333,693 $ 1,526,928

Special Revenue

Fund

Capital Projects

Fund

117

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$3,

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120

Exhibit J-10


in Fund Balance - Actual and BudgetDiscretely Presented Greene County School DepartmentCentral Cafeteria FundFor the Year Ended June 30, 2012



RevenuesCharges for Current Services $ 1,418,372 $ 1,485,000 $ 1,485,000 $ (66,628)Other Local Revenues 896 1,000 1,000 (104)State of Tennessee 38,301 39,500 39,500 (1,199)Federal Government 2,829,894 2,686,000 2,879,739 (49,845)

Total Revenues $ 4,287,463 $ 4,211,500 $ 4,405,239 $ (117,776)

ExpendituresOperation of Non-Instructional Services

Food Service $ 4,181,306 $ 4,211,500 $ 4,405,239 $ 223,933Total Expenditures $ 4,181,306 $ 4,211,500 $ 4,405,239 $ 223,933

Excess (Deficiency) of RevenuesOver Expenditures $ 106,157 $ 0 $ 0 $ 106,157

Net Change in Fund Balance $ 106,157 $ 0 $ 0 $ 106,157Fund Balance, July 1, 2011 1,087,078 1,073,450 1,073,450 13,628

Fund Balance, June 30, 2012 $ 1,193,235 $ 1,073,450 $ 1,073,450 $ 119,785

Budgeted Amounts

121

MISCELLANEOUS SCHEDULES

122

Exh

ibit

K-1

Gre

ene

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n D

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00

123

Exhibit K-2

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

YearEndingJune 30 Principal Interest Total

2013 $ 25,823 $ 4,809 $ 30,6322014 26,881 3,750 30,6312015 27,983 2,647 30,6302016 29,131 1,499 30,6302017 15,005 305 15,310

Total $ 124,823 $ 13,010 $ 137,833


2013 $ 905,000 $ 295,988 $ 1,200,9882014 955,000 295,988 1,250,9882015 245,000 93,637 338,6372016 260,000 81,387 341,3872017 245,000 68,387 313,3872018 260,000 56,137 316,1372019 275,000 43,137 318,1372020 295,000 28,700 323,7002021 310,000 13,950 323,950

Total $ 3,750,000 $ 977,311 $ 4,727,311

(Continued)

Notes

Other Loans

124

Exhibit K-2

Greene County, TennesseeSchedule of Long-term Debt Requirements by Year (Cont.)


2013 $ 1,575,000 $ 1,224,980 $ 2,799,9802014 1,640,000 1,172,226 2,812,2262015 2,485,000 1,117,002 3,602,0022016 2,575,000 1,042,417 3,617,4172017 2,590,000 962,076 3,552,0762018 2,530,000 878,326 3,408,3262019 2,630,000 791,764 3,421,7642020 2,730,000 701,582 3,431,5822021 2,480,000 620,289 3,100,2892022 2,910,000 529,931 3,439,9312023 3,020,000 423,056 3,443,0562024 3,130,000 309,700 3,439,7002025 3,255,000 189,763 3,444,7632026 1,655,000 72,406 1,727,406

Total $ 35,205,000 $ 10,035,518 $ 45,240,518

Bonds

125

Exh

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126

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127

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Sche

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404

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8,97

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569

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887

Trus

tee's

Col

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Year

166,

622

21,8

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00

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266

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Year

s94

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11,6

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1

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nses

and

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Exhi

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Sche

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mits

(Con

t.)Pe

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Per

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$7,

530

$0

$0

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00

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00

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l Lic

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Exhibit K-6

Greene County, TennesseeSchedule of Detailed Revenues -

All Governmental Fund TypesDiscretely Presented Greene County School DepartmentFor the Year Ended June 30, 2012

General School Purpose Federal Central School Projects Cafeteria Total

Local TaxesCounty Property Taxes

Current Property Tax $ 5,043,683 $ 0 $ 0 $ 5,043,683Trustee's Collections - Prior Year 135,722 0 0 135,722Trustee's Collections - Bankruptcy 209 0 0 209Circuit/Clerk & Master Collections - Prior Years 72,660 0 0 72,660Interest and Penalty 53,513 0 0 53,513Payments in-Lieu-of Taxes - T.V.A. 5,455 0 0 5,455Payments in-Lieu-of Taxes - Local Utilities 216,895 0 0 216,895Payments in-Lieu-of Taxes - Other 3,801 0 0 3,801

County Local Option TaxesLocal Option Sales Tax 5,216,709 0 0 5,216,709

Statutory Local TaxesBank Excise Tax 8,711 0 0 8,711Interstate Telecommunications Tax 2,757 0 0 2,757Other Statutory Local Taxes 369 0 0 369

Total Local Taxes $ 10,760,484 $ 0 $ 0 $ 10,760,484

Licenses and PermitsLicenses

Marriage Licenses $ 2,487 $ 0 $ 0 $ 2,487Total Licenses and Permits $ 2,487 $ 0 $ 0 $ 2,487

Charges for Current ServicesFees

Vending Machine Collections $ 1,436 $ 0 $ 0 $ 1,436Education Charges

Lunch Payments - Children 0 0 577,703 577,703Lunch Payments - Adults 0 0 129,248 129,248Income from Breakfast 0 0 360,246 360,246A la carte Sales 0 0 351,175 351,175Transportation - Other State Systems 101,987 0 0 101,987Receipts from Individual Schools 93,555 0 0 93,555Community Service Fees - Children 158,849 0 0 158,849TBI Criminal Background Fees 2,086 0 0 2,086

Total Charges for Current Services $ 357,913 $ 0 $ 1,418,372 $ 1,776,285

Other Local RevenuesRecurring Items

Investment Income $ 42,839 $ 0 $ 896 $ 43,735Lease/Rentals 3,000 0 0 3,000Miscellaneous Refunds 843,768 0 0 843,768

Nonrecurring ItemsSale of Equipment 20,768 0 0 20,768Damages Recovered from Individuals 195 0 0 195Contributions and Gifts 4,364 0 0 4,364

Other Local RevenuesOther Local Revenues 24,779 0 0 24,779

Total Other Local Revenues $ 939,713 $ 0 $ 896 $ 940,609

(Continued)

140

Exhibit K-6

Greene County, TennesseeSchedule of Detailed Revenues -

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

General School Purpose Federal Central School Projects Cafeteria Total

State of TennesseeGeneral Government Grants

On-Behalf Contributions for OPEB $ 395,013 $ 0 $ 0 $ 395,013State Education Funds

Basic Education Program 29,888,000 0 0 29,888,000Early Childhood Education 1,666,671 0 0 1,666,671School Food Service 0 0 38,301 38,301Driver Education 32,845 0 0 32,845Other State Education Funds 279,747 0 0 279,747Career Ladder Program 225,364 0 0 225,364Career Ladder - Extended Contract 92,867 0 0 92,867

Other State RevenuesOther State Grants 5,509 0 0 5,509

Total State of Tennessee $ 32,586,016 $ 0 $ 38,301 $ 32,624,317

Federal GovernmentFederal Through State

USDA School Lunch Program $ 0 $ 0 $ 1,928,422 $ 1,928,422USDA - Commodities 0 0 193,739 193,739Breakfast 0 0 701,918 701,918USDA - Other 0 0 5,815 5,815Vocational Education - Basic Grants to States 0 112,436 0 112,436Title I Grants to Local Education Agencies 0 1,737,244 0 1,737,244Special Education - Grants to States 5,355 1,747,367 0 1,752,722Special Education Preschool Grants 0 24,961 0 24,961English Language Acquisition Grants 0 9,056 0 9,056Rural Education 0 156,327 0 156,327Eisenhower Professional Development State Grants 0 296,727 0 296,727Race-to-the-Top - ARRA 0 481,732 0 481,732Other Federal through State 11,325 1,500,706 0 1,512,031

Direct Federal RevenueROTC Reimbursement 47,285 0 0 47,285Forest Service 40,752 0 0 40,752

Total Federal Government $ 104,717 $ 6,066,556 $ 2,829,894 $ 9,001,167

Total $ 44,751,330 $ 6,066,556 $ 4,287,463 $ 55,105,349

141

Exhibit K-7

Greene County, TennesseeSchedule of Detailed Expenditures -

All Governmental Fund TypesFor the Year Ended June 30, 2012

General FundGeneral Government

County CommissionBoard and Committee Members Fees $ 29,100 Social Security 1,430 State Retirement 1,540 Employer Medicare 399 Dues and Memberships 4,587 Legal Notices, Recording, and Court Costs 89 Postal Charges 62 Travel 8,743 Other Charges 397

Total County Commission $ 46,347

County Mayor/ExecutiveCounty Official/Administrative Officer $ 91,749 Secretary(ies) 35,358 Other Salaries and Wages 2,000 Social Security 7,759 State Retirement 13,169 Life Insurance 82 Medical Insurance 26,262 Unemployment Compensation 80 Employer Medicare 1,815 Communication 2,063 Dues and Memberships 2,010 Legal Notices, Recording, and Court Costs 1,053 Postal Charges 1,781 Rentals 4,813 Travel 525 Office Supplies 1,117 Periodicals 52 Premiums on Corporate Surety Bonds 175 Other Charges 589

Total County Mayor/Executive 192,452

County AttorneyCounty Official/Administrative Officer $ 58,333 Secretary(ies) 25,922 Overtime Pay 1,727 Social Security 5,010 State Retirement 8,770 Life Insurance 82

(Continued)

142

Exhibit K-7


All Governmental Fund Types (Cont.)

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

County Attorney (Cont.)Medical Insurance $ 28,809 Unemployment Compensation 144 Employer Medicare 1,172 Communication 1,797 Legal Notices, Recording, and Court Costs 682 Postal Charges 73 Travel 158 Tuition 425 Other Contracted Services 2,763 Office Supplies 428 Periodicals 120 Office Equipment 1,616

Total County Attorney $ 138,031

Election CommissionCounty Official/Administrative Officer $ 64,993 Clerical Personnel 44,401 Temporary Personnel 6,243 Overtime Pay 6,774 Election Commission 8,540 Election Workers 20,555 In-Service Training 390 Social Security 8,033 State Retirement 11,816 Life Insurance 123 Medical Insurance 37,337 Unemployment Compensation 370 Employer Medicare 1,879 Communication 3,308 Contracts with Private Agencies 4,005 Data Processing Services 14,683 Dues and Memberships 175 Legal Notices, Recording, and Court Costs 11,962 Maintenance and Repair Services - Equipment 19,505 Maintenance and Repair Services - Office Equipment 3,760 Postal Charges 9,546 Printing, Stationery, and Forms 5,941 Rentals 16,734 Travel 1,070 Equipment and Machinery Parts 7,402

(Continued)

143

Exhibit K-7




Election Commission (Cont.)Gasoline $ 169 Office Supplies 5,555 Periodicals 406 Other Supplies and Materials 124 Data Processing Equipment 99 Office Equipment 359

Total Election Commission $ 316,257

Register of DeedsCounty Official/Administrative Officer $ 72,214 Accountants/Bookkeepers 27,268 Clerical Personnel 104,942 Social Security 12,061 State Retirement 20,851 Life Insurance 225 Medical Insurance 58,405 Unemployment Compensation 360 Employer Medicare 2,821 Communication 1,147 Dues and Memberships 25 Maintenance and Repair Services - Office Equipment 13,300 Postal Charges 753 Printing, Stationery, and Forms 46 Rentals 20,260 Office Supplies 1,290 Premiums on Corporate Surety Bonds 185 Office Equipment 1,567

Total Register of Deeds 337,720

PlanningParaprofessionals $ 38,982 Board and Committee Members Fees 1,850 Social Security 2,330 State Retirement 3,984 Life Insurance 41 Medical Insurance 13,170 Unemployment Compensation 72 Employer Medicare 545 Contracts with Government Agencies 12,250 Legal Notices, Recording, and Court Costs 103

(Continued)

144

Exhibit K-7




Planning (Cont.)Rentals $ 444 Office Supplies 531

Total Planning $ 74,302

Codes CompliancePostal Charges $ 451 Other Contracted Services 9,417

Total Codes Compliance 9,868

Geographical Information SystemsSalary Supplements $ 5,235 Social Security 313 State Retirement 534 Life Insurance 4 Unemployment Compensation 11 Employer Medicare 73 Maintenance and Repair Services - Equipment 6,800 Travel 105 Tuition 200 Office Supplies 2,810 Uniforms 1,434

Total Geographical Information Systems 17,519

County BuildingsMaintenance Personnel $ 65,812 Part-time Personnel 1,062 Overtime Pay 5,054 Social Security 4,286 State Retirement 7,228 Life Insurance 114 Medical Insurance 24,669 Unemployment Compensation 295 Employer Medicare 1,002 Communication 911 Maintenance and Repair Services - Buildings 439 Maintenance and Repair Services - Equipment 9,403 Maintenance and Repair Services - Vehicles 422 Pest Control 960 Rentals 2,337 Other Contracted Services 3,092

(Continued)

145

Exhibit K-7




County Buildings (Cont.)Custodial Supplies $ 7,424 Electricity 79,667 Equipment and Machinery Parts 1,191 Garage Supplies 85 Gasoline 4,962 General Construction Materials 6,732 Natural Gas 5,518 Road Signs 2,576 Tires and Tubes 422 Uniforms 10 Water and Sewer 4,993 Other Supplies and Materials 1,411 Building Improvements 15,689 Heating and Air Conditioning Equipment 499 Other Equipment 8,383

Total County Buildings $ 266,648

FinanceAccounting and Budgeting

Supervisor/Director $ 60,813 Accountants/Bookkeepers 139,157 Overtime Pay 2,447 Social Security 11,959 State Retirement 20,647 Life Insurance 231 Medical Insurance 54,456 Unemployment Compensation 432 Employer Medicare 2,797 Audit Services 20,649 Communication 4,058 Data Processing Services 10,904 Dues and Memberships 460 Legal Notices, Recording, and Court Costs 826 Licenses 120 Maintenance and Repair Services - Office Equipment 5,693 Postal Charges 2,556 Printing, Stationery, and Forms 2,447 Rentals 316 Travel 763 Tuition 1,305

(Continued)

146

Exhibit K-7



General Fund (Cont.)Finance (Cont.)

Accounting and Budgeting (Cont.)Other Contracted Services $ 7,440 Office Supplies 5,975 Periodicals 425 Other Supplies and Materials 18 Premiums on Corporate Surety Bonds 163 Other Charges 400 Data Processing Equipment 47,850 Office Equipment 364

Total Accounting and Budgeting $ 405,671

PurchasingSupervisor/Director $ 39,217 Purchasing Personnel 30,819 Overtime Pay 196 Social Security 4,064 State Retirement 7,164 Life Insurance 82 Medical Insurance 26,340 Unemployment Compensation 144 Employer Medicare 951 Communication 2,045 Dues and Memberships 400 Legal Notices, Recording, and Court Costs 157 Postal Charges 43 Rentals 888 Office Supplies 1,790 Other Supplies and Materials 374 Premiums on Corporate Surety Bonds 50 Data Processing Equipment 350

Total Purchasing 115,074

Property Assessor's OfficeCounty Official/Administrative Officer $ 72,214 Data Processing Personnel 30,870 Assessment Personnel 152,614 Clerical Personnel 20,104 Part-time Personnel 8,267 Board and Committee Members Fees 4,700 Social Security 16,531 State Retirement 27,985

(Continued)

147

Exhibit K-7




Property Assessor's Office (Cont.)Life Insurance $ 335 Medical Insurance 86,641 Unemployment Compensation 630 Employer Medicare 3,922 Communication 2,336 Contracts with Government Agencies 32,657 Dues and Memberships 1,600 Legal Notices, Recording, and Court Costs 212 Maintenance and Repair Services - Equipment 355 Maintenance and Repair Services - Office Equipment 1,123 Maintenance and Repair Services - Vehicles 339 Postal Charges 732 Printing, Stationery, and Forms 102 Rentals 1,248 Travel 55 Tuition 50 Other Contracted Services 59,606 Equipment and Machinery Parts 494 Garage Supplies 32 Gasoline 2,272 Office Supplies 2,209 Periodicals 137 Other Supplies and Materials 275 Premiums on Corporate Surety Bonds 280 Data Processing Equipment 429

Total Property Assessor's Office $ 531,356

Reappraisal ProgramCommunication $ 101 Contracts with Government Agencies 576 Maintenance and Repair Services - Office Equipment 180 Gasoline 2,883 Office Supplies 637

Total Reappraisal Program 4,377

County Trustee's OfficeCounty Official/Administrative Officer $ 72,214 Assistant(s) 34,016 Accountants/Bookkeepers 26,382 Clerical Personnel 13,476

(Continued)

148

Exhibit K-7




County Trustee's Office (Cont.)Part-time Personnel $ 17,522 Overtime Pay 6,756 Social Security 10,082 State Retirement 15,477 Life Insurance 135 Medical Insurance 38,317 Unemployment Compensation 330 Employer Medicare 2,358 Communication 1,374 Dues and Memberships 526 Legal Notices, Recording, and Court Costs 132 Maintenance and Repair Services - Office Equipment 8,518 Postal Charges 11,281 Printing, Stationery, and Forms 1,158 Rentals 15 Travel 1,001 Gasoline 48 Office Supplies 1,642 Premiums on Corporate Surety Bonds 204 Office Equipment 579

Total County Trustee's Office $ 263,543

County Clerk's OfficeCounty Official/Administrative Officer $ 72,214 Assistant(s) 37,062 Clerical Personnel 153,267 Part-time Personnel 21,761 Overtime Pay 1,372 Bonus Payments 8,000 Social Security 16,484 State Retirement 27,583 Life Insurance 359 Medical Insurance 106,752 Unemployment Compensation 741 Employer Medicare 3,960 Communication 2,439 Dues and Memberships 736 Legal Notices, Recording, and Court Costs 442 Maintenance and Repair Services - Office Equipment 14,983 Postal Charges 12,616

(Continued)

149

Exhibit K-7




County Clerk's Office (Cont.)Printing, Stationery, and Forms $ 3,231 Rentals 4,362 Travel 1,397 Gasoline 351 Office Supplies 5,669 Periodicals 347 Premiums on Corporate Surety Bonds 248 Other Charges 1,802 Data Processing Equipment 3,279 Office Equipment 2,115

Total County Clerk's Office $ 503,572

Administration of JusticeCircuit Court

County Official/Administrative Officer $ 72,214 Assistant(s) 37,020 Accountants/Bookkeepers 28,564 Clerical Personnel 221,927 Part-time Personnel 5,834 Overtime Pay 8,565 Bonus Payments 5,500 Other Salaries and Wages 14,550 Jury and Witness Expense 11,348 Social Security 22,934 State Retirement 37,944 Life Insurance 487 Medical Insurance 148,796 Unemployment Compensation 961 Employer Medicare 5,364 Communication 2,662 Data Processing Services 4,500 Dues and Memberships 836 Legal Notices, Recording, and Court Costs 428 Maintenance and Repair Services - Office Equipment 12,608 Postal Charges 4,956 Printing, Stationery, and Forms 8,315 Rentals 5,882 Travel 39 Other Contracted Services 3,480 Office Supplies 7,157

(Continued)

150

Exhibit K-7



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

Circuit Court (Cont.)Premiums on Corporate Surety Bonds $ 321 Data Processing Equipment 203

Total Circuit Court $ 673,395

General Sessions CourtJudge(s) $ 148,327 Probation Officer(s) 36,060 Secretary(ies) 31,620 Part-time Personnel 37,032 Overtime Pay 3,120 Social Security 13,615 State Retirement 22,350 Life Insurance 121 Medical Insurance 37,073 Unemployment Compensation 284 Employer Medicare 3,202 Communication 4,018 Dues and Memberships 365 Maintenance and Repair Services - Office Equipment 360 Printing, Stationery, and Forms 238 Rentals 1,288 Travel 384 Other Contracted Services 600 Office Supplies 1,508 Periodicals 409 Other Supplies and Materials 258 Premiums on Corporate Surety Bonds 192 Other Equipment 861

Total General Sessions Court 343,285

Drug CourtContributions $ 1,265

Total Drug Court 1,265

Chancery CourtCounty Official/Administrative Officer $ 72,214 Assistant(s) 34,452 Clerical Personnel 75,174 Social Security 10,668 State Retirement 18,548

(Continued)

151

Exhibit K-7




Chancery Court (Cont.)Life Insurance $ 204 Medical Insurance 57,045 Unemployment Compensation 360 Employer Medicare 2,495 Bank Charges 60 Communication 4,854 Data Processing Services 3,100 Dues and Memberships 856 Maintenance and Repair Services - Office Equipment 8,302 Postal Charges 2,059 Printing, Stationery, and Forms 1,665 Rentals 2,724 Other Contracted Services 6,875 Office Supplies 3,061 Periodicals 2,380 Premiums on Corporate Surety Bonds 223 Data Processing Equipment 348 Office Equipment 249

Total Chancery Court $ 307,916

Juvenile CourtYouth Service Officer(s) $ 38,106 Secretary(ies) 52,618 Overtime Pay 212 Social Security 5,446 State Retirement 9,275 Life Insurance 120 Medical Insurance 25,047 Unemployment Compensation 211 Employer Medicare 1,274 Communication 1,758 Data Processing Services 792 Dues and Memberships 325 Maintenance and Repair Services - Office Equipment 2,272 Printing, Stationery, and Forms 117 Rentals 1,472 Travel 582 Other Contracted Services 1,019 Office Supplies 874 Data Processing Equipment 1,510

Total Juvenile Court 143,030

(Continued)

152

Exhibit K-7




District Attorney GeneralCommunication $ 4,821

Total District Attorney General $ 4,821

Probate CourtClerical Personnel $ 20,065 Social Security 1,246 State Retirement 2,046 Life Insurance 37 Unemployment Compensation 117 Employer Medicare 292 Communication 24 Postal Charges 608 Printing, Stationery, and Forms 366 Rentals 1,104 Travel 77 Tuition 175 Other Contracted Services 1,282 Office Supplies 648 Periodicals 367 Data Processing Equipment 15,642

Total Probate Court 44,096

Other Administration of JusticeSalary Supplements $ 4,995 Social Security 107 State Retirement 510 Life Insurance 4 Medical Insurance 983 Unemployment Compensation 8 Employer Medicare 25 Maintenance and Repair Services - Office Equipment 2,300 Travel 114 Tuition 85

Total Other Administration of Justice 9,131

Courtroom SecurityGuards $ 65,880 Part-time Personnel 33,625 Overtime Pay 738 Social Security 6,100

(Continued)

153

Exhibit K-7




Courtroom Security (Cont.)State Retirement $ 6,627 Life Insurance 102 Medical Insurance 16,776 Unemployment Compensation 466 Employer Medicare 1,427 Maintenance and Repair Services - Equipment 511 Other Contracted Services 10,986 Law Enforcement Equipment 2,237 Other Equipment 3,000

Total Courtroom Security $ 148,475

Public SafetySheriff's Department

County Official/Administrative Officer $ 87,380 Assistant(s) 51,663 Deputy(ies) 1,114,250 Detective(s) 231,554 Captain(s) 90,301 Lieutenant(s) 249,220 Sergeant(s) 229,581 Mechanic(s) 58,621 Dispatchers/Radio Operators 282,511 Part-time Personnel 18,796 Overtime Pay 96,329 Other Salaries and Wages 50,011 In-Service Training 33,600 Social Security 153,673 State Retirement 253,507 Life Insurance 2,640 Medical Insurance 794,978 Unemployment Compensation 4,901 Employer Medicare 35,944 Communication 10,159 Contracts with Government Agencies 2,680 Contributions 1,801 Dues and Memberships 2,975 Licenses 140 Maintenance and Repair Services - Equipment 2,939 Maintenance and Repair Services - Office Equipment 2,183 Maintenance and Repair Services - Vehicles 7,042

(Continued)

154

Exhibit K-7



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

Sheriff's Department (Cont.)Postal Charges $ 901 Printing, Stationery, and Forms 873 Rentals 5,551 Travel 13,594 Tuition 11,415 Veterinary Services 285 Other Contracted Services 6,970 Electricity 5,002 Equipment and Machinery Parts 21,710 Food Supplies 274 Garage Supplies 14,288 Gasoline 200,000 Law Enforcement Supplies 3,220 Office Supplies 4,903 Periodicals 30 Tires and Tubes 14,809 Uniforms 5,549 Water and Sewer 690 Other Supplies and Materials 2,178 Premiums on Corporate Surety Bonds 1,418 In Service/Staff Development 7,900 Building Improvements 2,674 Data Processing Equipment 15,863 Furniture and Fixtures 231 Law Enforcement Equipment 18,264 Office Equipment 841 Other Equipment 4,656

Total Sheriff's Department $ 4,233,468

Special PatrolsSecretary(ies) $ 27,311 Social Security 1,698 State Retirement 2,786 Unemployment Compensation 72 Employer Medicare 397 Other Charges 400 Law Enforcement Equipment 44,503 Motor Vehicles 79,182

Total Special Patrols 156,349

(Continued)

155

Exhibit K-7




Administration of the Sexual Offender RegistryOther Contracted Services $ 1,350 Office Supplies 1,900

Total Administration of the Sexual Offender Registry $ 3,250

JailSupervisor/Director $ 44,397 Deputy(ies) 1,215,160 Captain(s) 39,516 Lieutenant(s) 149,628 Sergeant(s) 165,545 Medical Personnel 143,880 Paraprofessionals 210,852 Cafeteria Personnel 171,285 Maintenance Personnel 60,973 Part-time Personnel 26,402 Overtime Pay 53,877 Other Salaries and Wages 35,643 Social Security 136,184 State Retirement 229,028 Life Insurance 3,128 Medical Insurance 790,445 Unemployment Compensation 6,046 Employer Medicare 31,996 Communication 19,657 Dues and Memberships 48 Maintenance Agreements 4,740 Maintenance and Repair Services - Buildings 3,044 Maintenance and Repair Services - Equipment 29,000 Medical and Dental Services 128,899 Pest Control 480 Postal Charges 39 Printing, Stationery, and Forms 1,993 Rentals 8,220 Travel 1,597 Tuition 750 Disposal Fees 2,077 Other Contracted Services 4,025 Custodial Supplies 22,488 Drugs and Medical Supplies 47,272 Electricity 112,875

(Continued)

156

Exhibit K-7




Jail (Cont.)Equipment and Machinery Parts $ 21,436 Food Preparation Supplies 22,855 Food Supplies 320,201 Gasoline 9,950 General Construction Materials 12,999 Law Enforcement Supplies 4,164 Natural Gas 54,299 Office Supplies 6,940 Prisoners Clothing 4,376 Uniforms 13,136 Water and Sewer 68,518 Other Supplies and Materials 29,910 In Service/Staff Development 495 Other Charges 238,514 Building Improvements 14,260 Data Processing Equipment 2,859 Food Service Equipment 5,823 Furniture and Fixtures 150 Law Enforcement Equipment 8,046 Motor Vehicles 40,591 Other Equipment 8,243

Total Jail $ 4,788,954

Juvenile ServicesContracts with Private Agencies $ 112,026

Total Juvenile Services 112,026

Civil DefenseSupervisor/Director $ 42,571 Secretary(ies) 24,612 Part-time Personnel 10,528 Other Salaries and Wages 100 Social Security 4,633 State Retirement 6,853 Life Insurance 82 Medical Insurance 21,729 Unemployment Compensation 225 Employer Medicare 1,084 Communication 6,353 Contributions 10,598

(Continued)

157

Exhibit K-7




Civil Defense (Cont.)Dues and Memberships $ 200 Maintenance and Repair Services - Vehicles 264 Postal Charges 18 Rentals 1,104 Travel 898 Electricity 836 Equipment and Machinery Parts 125 Food Preparation Supplies 206 Gasoline 5,586 Natural Gas 378 Office Supplies 656 Uniforms 60 Water and Sewer 394 Other Supplies and Materials 35 Other Charges 1,514 Data Processing Equipment 96 Motor Vehicles 279 Other Equipment 40,762

Total Civil Defense $ 182,779

Rescue SquadContributions $ 4,900

Total Rescue Squad 4,900

Disaster ReliefOvertime Pay $ 284 Social Security 41 State Retirement 70 Medical Insurance 130 Employer Medicare 10 Contributions 120,000 Rentals 5,451 Law Enforcement Equipment 1,679

Total Disaster Relief 127,665

Other Emergency ManagementOther Equipment $ 4,861

Total Other Emergency Management 4,861

(Continued)

158

Exhibit K-7




Inspection and RegulationAssistant(s) $ 27,407 Supervisor/Director 37,466 Paraprofessionals 20,658 Social Security 4,953 State Retirement 8,724 Life Insurance 121 Medical Insurance 34,456 Unemployment Compensation 237 Employer Medicare 1,159 Communication 4,604 Dues and Memberships 375 Legal Notices, Recording, and Court Costs 383 Licenses 50 Maintenance and Repair Services - Office Equipment 269 Maintenance and Repair Services - Vehicles 812 Postal Charges 173 Printing, Stationery, and Forms 92 Rentals 1,236 Travel 12 Tuition 414 Equipment and Machinery Parts 13 Garage Supplies 42 Gasoline 5,729 Office Supplies 3,365 Tires and Tubes 306 Uniforms 250 Other Supplies and Materials 970 Other Charges 126 Data Processing Equipment 963 Furniture and Fixtures 34 Law Enforcement Equipment 2,100

Total Inspection and Regulation $ 157,499

County Coroner/Medical ExaminerOther Salaries and Wages $ 6,000 Social Security 349 State Retirement 612 Life Insurance 4 Medical Insurance 1,424 Unemployment Compensation 12

(Continued)

159

Exhibit K-7




County Coroner/Medical Examiner (Cont.)Employer Medicare $ 82 Communication 1,471 Contracts with Private Agencies 14,400 Contributions 44,857 Pauper Burials 1,155 Transportation - Other than Students 2,340 Other Contracted Services 8,106 Office Supplies 295 Tires and Tubes 599 Other Supplies and Materials 1,088 Other Equipment 85

Total County Coroner/Medical Examiner $ 82,879

Other Public SafetyAdvertising $ 197

Total Other Public Safety 197

Public Health and WelfareLocal Health Center

Medical Personnel $ 89,661 Salary Supplements 18,913 Clerical Personnel 78,710 Custodial Personnel 32,847 Other Salaries and Wages 32,494 Social Security 13,769 State Retirement 23,818 Life Insurance 310 Medical Insurance 86,588 Unemployment Compensation 548 Employer Medicare 3,221 Advertising 271 Communication 11,904 Dues and Memberships 565 Maintenance Agreements 5,385 Maintenance and Repair Services - Buildings 3,292 Maintenance and Repair Services - Equipment 2,501 Maintenance and Repair Services - Vehicles 183 Medical and Dental Services 150 Postal Charges 3,765 Printing, Stationery, and Forms 611

(Continued)

160

Exhibit K-7



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

Local Health Center (Cont.)Rentals $ 13,279 Travel 1,454 Disposal Fees 8,170 Other Contracted Services 2,420 Custodial Supplies 5,627 Drugs and Medical Supplies 46,587 Electricity 28,078 Equipment and Machinery Parts 206 Food Supplies 1,151 Garage Supplies 14 Office Supplies 9,577 Periodicals 607 Water and Sewer 1,196 Other Supplies and Materials 3,485 Liability Insurance 2,635 Building Improvements 12,462 Furniture and Fixtures 1,342 Other Equipment 8,359

Total Local Health Center $ 556,155

Rabies and Animal ControlSupervisor/Director $ 28,062 Paraprofessionals 40,596 Part-time Personnel 6,252 Social Security 4,251 State Retirement 7,003 Life Insurance 123 Medical Insurance 37,211 Unemployment Compensation 310 Employer Medicare 994 Communication 2,367 Licenses 108 Maintenance and Repair Services - Buildings 551 Maintenance and Repair Services - Equipment 92 Maintenance and Repair Services - Vehicles 688 Rentals 444 Travel 525 Tuition 350 Disposal Fees 393 Custodial Supplies 1,119

(Continued)

161

Exhibit K-7




Rabies and Animal Control (Cont.)Drugs and Medical Supplies $ 768 Electricity 6,315 Equipment and Machinery Parts 647 Food Supplies 1,364 Gasoline 9,893 Office Supplies 214 Tires and Tubes 930 Water and Sewer 758 Other Supplies and Materials 3,040 Other Equipment 1,960

Total Rabies and Animal Control $ 157,328

Ambulance/Emergency Medical ServicesAssistant(s) $ 35,800 Supervisor/Director 47,163 Mechanic(s) 28,731 Clerical Personnel 95,816 Attendants 901,419 Part-time Personnel 108,580 Overtime Pay 687,289 Social Security 112,993 State Retirement 177,858 Life Insurance 1,926 Medical Insurance 517,785 Unemployment Compensation 4,563 Employer Medicare 26,429 Communication 12,155 Data Processing Services 5,400 Dues and Memberships 470 Licenses 3,018 Maintenance and Repair Services - Buildings 750 Maintenance and Repair Services - Equipment 683 Maintenance and Repair Services - Vehicles 1,770 Pest Control 160 Postal Charges 9,062 Printing, Stationery, and Forms 1,690 Rentals 1,818 Travel 2,259 Tuition 4,730 Disposal Fees 4,832

(Continued)

162

Exhibit K-7




Ambulance/Emergency Medical Services (Cont.)Other Contracted Services $ 804 Custodial Supplies 1,538 Diesel Fuel 117,052 Drugs and Medical Supplies 85,696 Electricity 7,371 Equipment and Machinery Parts 18,014 Garage Supplies 6,839 Gasoline 12,737 Natural Gas 2,399 Office Supplies 2,480 Tires and Tubes 5,178 Uniforms 12,095 Water and Sewer 1,364 Other Supplies and Materials 1,275 Refunds 27,197 Other Charges 803 Building Improvements 1,475 Communication Equipment 2,440 Data Processing Equipment 559 Furniture and Fixtures 995 Motor Vehicles 146,164

Total Ambulance/Emergency Medical Services $ 3,249,624

Alcohol and Drug ProgramsOther Charges $ 10,088

Total Alcohol and Drug Programs 10,088

Other Local Health ServicesMedical Personnel $ 83,339 Clerical Personnel 36,700 Part-time Personnel 10,456 Other Salaries and Wages 85,582 Social Security 12,910 State Retirement 17,617 Life Insurance 262 Medical Insurance 47,978 Unemployment Compensation 870 Employer Medicare 3,020 Travel 7,190

Total Other Local Health Services 305,924

(Continued)

163

Exhibit K-7




Appropriation to StateContributions $ 67,000

Total Appropriation to State $ 67,000

Waste PickupPart-time Personnel $ 10,227 Other Salaries and Wages 21,272 Social Security 1,821 State Retirement 2,170 Life Insurance 41 Medical Insurance 15,423 Unemployment Compensation 146 Employer Medicare 426 Contributions 17,100 Gasoline 19,407 Other Supplies and Materials 2,861

Total Waste Pickup 90,894

Social, Cultural, and Recreational ServicesLibraries

Contributions $ 84,500 Total Libraries 84,500

Agriculture and Natural ResourcesAgriculture Extension Service

Salary Supplements $ 81,591 Part-time Personnel 2,771 Social Security 5,230 State Retirement 8,112 Unemployment Compensation 20 Employer Medicare 1,223 Other Fringe Benefits 3,278 Communication 2,165 Dues and Memberships 220 Operating Lease Payments 1,129 Travel 171 Office Supplies 839 Data Processing Equipment 2,997

Total Agriculture Extension Service 109,746

(Continued)

164

Exhibit K-7



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

Forest ServiceContributions $ 1,470

Total Forest Service $ 1,470

Soil ConservationParaprofessionals $ 23,192 Secretary(ies) 25,591 Overtime Pay 88 Social Security 2,736 State Retirement 4,985 Life Insurance 82 Medical Insurance 29,374 Unemployment Compensation 144 Employer Medicare 640 Dues and Memberships 1,090 Postal Charges 400 Office Supplies 750

Total Soil Conservation 89,072

Other OperationsTourism

Contributions $ 85,917 Total Tourism 85,917

Industrial DevelopmentContributions $ 85,917

Total Industrial Development 85,917

AirportContributions $ 30,380

Total Airport 30,380

Veterans' ServicesSupervisor/Director $ 12,100 Salary Supplements 4,000 Clerical Personnel 26,067 Social Security 1,783 State Retirement 3,067 Life Insurance 41 Medical Insurance 13,290 Unemployment Compensation 142

(Continued)

165

Exhibit K-7



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

Veterans' Services (Cont.)Employer Medicare $ 540 Communication 958 Postal Charges 703 Rentals 5,244 Travel 933 Office Supplies 319

Total Veterans' Services $ 69,187

Other ChargesDues and Memberships $ 5,955

Total Other Charges 5,955

Contributions to Other AgenciesContributions $ 305,180 Rentals 9,000

Total Contributions to Other Agencies 314,180

MiscellaneousOther Contracted Services $ 2,202 Trustee's Commission 170,457 Other Charges 1,000

Total Miscellaneous 173,659

Total General Fund $ 20,239,974

Solid Waste/Sanitation FundPublic Health and Welfare

Sanitation ManagementAssistant(s) $ 28,349 Supervisor/Director 35,437 Salary Supplements 3,000 Social Security 4,016 State Retirement 6,812 Life Insurance 82 Medical Insurance 19,468 Unemployment Compensation 138 Employer Medicare 939 Communication 1,526 Contracts with Other Public Agencies 679,289 Maintenance and Repair Services - Equipment 800

(Continued)

166

Exhibit K-7



Solid Waste/Sanitation Fund (Cont.)Public Health and Welfare (Cont.)

Sanitation Management (Cont.)Maintenance and Repair Services - Vehicles $ 4,000 Medical and Dental Services 298 Postal Charges 1,166 Printing, Stationery, and Forms 500 Rentals 769 Travel 150 Tuition 175 Other Contracted Services 3,050 Custodial Supplies 240 Diesel Fuel 119,923 Electricity 5,367 Equipment and Machinery Parts 33,592 Garage Supplies 7,454 Gasoline 3,072 Lubricants 4,848 Natural Gas 1,819 Office Supplies 994 Small Tools 118 Tires and Tubes 14,780 Uniforms 2,228 Water and Sewer 533 Other Supplies and Materials 1,995 Trustee's Commission 23,896 Data Processing Equipment 1,635 Other Equipment 103,180

Total Sanitation Management $ 1,115,638

Waste PickupMechanic(s) $ 84,372 Truck Drivers 166,550 Part-time Personnel 12,937 Overtime Pay 4,098 Social Security 15,808 State Retirement 25,735 Life Insurance 394 Medical Insurance 105,933 Unemployment Compensation 878 Employer Medicare 3,698

Total Waste Pickup 420,403

(Continued)

167

Exhibit K-7



Solid Waste/Sanitation Fund (Cont.)Public Health and Welfare (Cont.)

Convenience CentersAttendants $ 330,595 Social Security 18,195 Unemployment Compensation 2,552 Employer Medicare 4,645 Communication 5,003 Operating Lease Payments 1,808 Medical and Dental Services 190 Disposal Fees 978 Other Contracted Services 31 Crushed Stone 3,169 Custodial Supplies 1,451 Electricity 10,536 Water and Sewer 3,547 Other Supplies and Materials 2,943

Total Convenience Centers $ 385,643

Transfer StationsPart-time Personnel $ 4,408 Social Security 286 State Retirement 22 Medical Insurance 78 Unemployment Compensation 35 Employer Medicare 67 Disposal Fees 38,647

Total Transfer Stations 43,543

Total Solid Waste/Sanitation Fund $ 1,965,227

Special Purpose FundGeneral Government

Risk ManagementConsultants $ 27,092 Legal Services 91,128 Other Contracted Services 2,095 Boiler Insurance 7,760 Building and Contents Insurance 177,125 Liability Insurance 157,920 Trustee's Commission 18,099 Workers' Compensation Insurance 149,931 Liability Claims 647,569

(Continued)

168

Exhibit K-7



Special Purpose Fund (Cont.)General Government (Cont.)

Risk Management (Cont.)Other Self-Insured Claims $ 154,118

Total Risk Management $ 1,432,837

Total Special Purpose Fund $ 1,432,837

Drug Control FundPublic Safety

Sheriff's DepartmentLaw Enforcement Supplies $ 329 Office Equipment 8,588

Total Sheriff's Department $ 8,917

Drug EnforcementAdvertising $ 493 Communication 2,523 Contributions 1,000 Confidential Drug Enforcement Payments 500 Maintenance and Repair Services - Buildings 734 Travel 1,987 Tuition 22 Other Contracted Services 2,532 Electricity 5,533 Law Enforcement Supplies 4,636 Water and Sewer 171 Other Supplies and Materials 634 Law Enforcement Equipment 40,773

Total Drug Enforcement 61,538

Total Drug Control Fund 70,455

District Attorney General FundAdministration of Justice

District Attorney GeneralJury and Witness Expense $ 201 Communication 1,110 Dues and Memberships 645 Travel 7,789 Tuition 6,825 Other Contracted Services 2,132 Office Equipment 11,524

Total District Attorney General $ 30,226

Total District Attorney General Fund 30,226

(Continued)

169

Exhibit K-7



Constitutional Officers - Fees FundAdministration of Justice

Circuit CourtConstitutional Officers' Operating Expenses $ 90

Total Circuit Court $ 90

Chancery CourtSpecial Commissioner Fees/Special Master Fees $ 6,214

Total Chancery Court 6,214

Total Constitutional Officers - Fees Fund $ 6,304

Highway/Public Works FundHighways

AdministrationCounty Official/Administrative Officer $ 79,436 Accountants/Bookkeepers 60,062 Overtime Pay 2,679 Other Salaries and Wages 59,466 Social Security 11,875 State Retirement 20,568 Life Insurance 221 Medical Insurance 76,897 Unemployment Compensation 144 Employer Medicare 2,778 Dues and Memberships 3,753 Maintenance and Repair Services - Office Equipment 378 Postal Charges 356 Travel 688 Tuition 245 Other Contracted Services 160 Office Supplies 1,981 Other Charges 1,627 Data Processing Equipment 1,200 Furniture and Fixtures 458

Total Administration $ 324,972

Highway and Bridge MaintenanceAssistant(s) $ 38,477 Foremen 100,176 Equipment Operators - Heavy 405,698 Equipment Operators - Light 122,187 Truck Drivers 325,143

(Continued)

170

Exhibit K-7



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

Highway and Bridge Maintenance (Cont.)Laborers $ 343,411 Part-time Personnel 67,538 Overtime Pay 51,062 Social Security 85,291 State Retirement 141,004 Life Insurance 2,204 Medical Insurance 609,870 Unemployment Compensation 4,681 Employer Medicare 19,955 Licenses 750 Tuition 1,340 Other Contracted Services 52,512 Asphalt 793,595 Concrete 37,347 Crushed Stone 116,237 Custodial Supplies 208 General Construction Materials 144,453 Pipe - Metal 21,648 Road Signs 4,414 Salt 25,491

Total Highway and Bridge Maintenance $ 3,514,692

Operation and Maintenance of EquipmentSupervisor/Director $ 30,265 Mechanic(s) 111,792 Laborers 52,220 Overtime Pay 13,099 Social Security 12,250 State Retirement 21,171 Life Insurance 266 Medical Insurance 66,554 Unemployment Compensation 504 Employer Medicare 2,865 Licenses 105 Maintenance and Repair Services - Equipment 2,183 Maintenance and Repair Services - Vehicles 18,610 Custodial Supplies 1,793 Diesel Fuel 246,330 Equipment and Machinery Parts 146,708 Garage Supplies 47,934

(Continued)

171

Exhibit K-7



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

Operation and Maintenance of Equipment (Cont.)Gasoline $ 105,760 Lubricants 19,008 Small Tools 3,710 Tires and Tubes 38,542 Other Charges 4,322

Total Operation and Maintenance of Equipment $ 945,991

Asphalt Plant OperationsAsphalt - Hot Mix $ 20,000 Asphalt - Liquid 73,700 Crushed Stone 36,867 Electricity 4,486 Natural Gas 4,814 Water and Sewer 17

Total Asphalt Plant Operations 139,884

Other ChargesCommunication $ 8,084 Travel 932 Other Contracted Services 774 Electricity 11,076 Natural Gas 2,763 Water and Sewer 672 Premiums on Corporate Surety Bonds 710 Trustee's Commission 65,174 Other Charges 1,018

Total Other Charges 91,203

Capital OutlayHighway Equipment $ 206,011 Motor Vehicles 25,700

Total Capital Outlay 231,711

Total Highway/Public Works Fund $ 5,248,453

General Debt Service FundPrincipal on Debt

General GovernmentPrincipal on Bonds $ 580,000

Total General Government $ 580,000

(Continued)

172

Exhibit K-7



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

Highways and StreetsPrincipal on Bonds $ 55,000 Principal on Other Loans 275,000

Total Highways and Streets $ 330,000

Interest on DebtGeneral Government

Interest on Bonds $ 92,800 Total General Government 92,800

Highways and StreetsInterest on Bonds $ 354,095 Interest on Other Loans 198,550

Total Highways and Streets 552,645

Other Debt ServiceGeneral Government

Trustee's Commission $ 18,169 Other Charges 1,979

Total General Government 20,148

Highways and StreetsUnderwriter's Discount $ 44,716 Other Debt Issuance Charges 68,250

Total Highways and Streets 112,966

Total General Debt Service Fund $ 1,688,559

Education Debt Service FundPrincipal on Debt

EducationPrincipal on Bonds $ 1,215,000 Principal on Notes 518,221

Total Education $ 1,733,221

Interest on DebtEducation

Interest on Bonds $ 921,086 Interest on Notes 9,546

Total Education 930,632

(Continued)

173

Exhibit K-7



Education Debt Service Fund (Cont.)Other Debt Service

EducationTrustee's Commission $ 43,213 Other Charges 3,390

Total Education $ 46,603

Total Education Debt Service Fund $ 2,710,456

General Capital Projects FundCapital Projects

General Administration ProjectsArchitects $ 10,754 Other Contracted Services 21,500 Building Improvements 1,439,751 Other Equipment 23,851

Total General Administration Projects $ 1,495,856

Public Safety ProjectsBuilding Improvements $ 41,008

Total Public Safety Projects 41,008

Other General Government ProjectsLegal Notices, Recording, and Court Costs $ 588 Trustee's Commission 844 Building Improvements 10,450

Total Other General Government Projects 11,882

Total General Capital Projects Fund 1,548,746

Highway Capital Projects FundHighways

Capital OutlayEngineering Services $ 10,372 Licenses 250 Rentals 61 Permits 100 Other Contracted Services 3,000 Asphalt 766,785 Electricity 7,750 Asphalt Plant Equipment 848,862 Highway Equipment 42,130

Total Capital Outlay $ 1,679,310

(Continued)

174

Exhibit K-7



Highway Capital Projects Fund (Cont.)Capital Projects

Highway and Street Capital ProjectsTrustee's Commission $ 76

Total Highway and Street Capital Projects $ 76

Total Highway Capital Projects Fund $ 1,679,386

Other Capital Projects FundCapital Projects

Social, Cultural, and Recreation ProjectsContributions $ 89,060 Trustee's Commission 1,173

Total Social, Cultural, and Recreation Projects $ 90,233

Total Other Capital Projects Fund 90,233

Total Governmental Funds - Primary Government $ 36,710,856

175

Exhibit K-8


All Governmental Fund TypesDiscretely Presented Greene County School DepartmentFor the Year Ended June 30, 2012

General Purpose School FundInstruction

Regular Instruction ProgramTeachers $ 15,343,742 Career Ladder Program 125,941 Career Ladder Extended Contracts 78,893 Educational Assistants 403,225 Other Salaries and Wages 19,915 Certified Substitute Teachers 69,525 Non-certified Substitute Teachers 126,770 Social Security 954,694 State Retirement 1,438,412 Life Insurance 5,555 Medical Insurance 2,352,548 Dental Insurance 34,008 Unemployment Compensation 16,512 Employer Medicare 224,629 Maintenance and Repair Services - Equipment 14,763 Other Contracted Services 20,896 Instructional Supplies and Materials 134,079 Textbooks 355,496 Other Supplies and Materials 30,079 Other Charges 85,691 Regular Instruction Equipment 202,340

Total Regular Instruction Program $ 22,037,713

Special Education ProgramTeachers $ 1,695,583 Career Ladder Program 16,938 Homebound Teachers 77,679 Educational Assistants 206,585 Speech Pathologist 262,395 Certified Substitute Teachers 910 Non-certified Substitute Teachers 6,646 Social Security 130,971 State Retirement 192,772 Life Insurance 769 Medical Insurance 331,074 Dental Insurance 5,392 Unemployment Compensation 1,847 Employer Medicare 31,207 Maintenance and Repair Services - Equipment 1,573

(Continued)

176

Exhibit K-8



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

Special Education Program (Cont.)Other Contracted Services $ 37,495 Instructional Supplies and Materials 6,844 Other Supplies and Materials 3,998 Special Education Equipment 14,977

Total Special Education Program $ 3,025,655

Vocational Education ProgramTeachers $ 857,249 Career Ladder Program 10,000 Certified Substitute Teachers 390 Non-certified Substitute Teachers 7,745 Social Security 51,381 State Retirement 77,919 Life Insurance 258 Medical Insurance 132,480 Dental Insurance 867 Unemployment Compensation 482 Employer Medicare 12,016 Contracts with Other School Systems 318,841 Maintenance and Repair Services - Equipment 2,989 Instructional Supplies and Materials 29,516 Other Supplies and Materials 984 Other Charges 1,042 Vocational Instruction Equipment 24,782

Total Vocational Education Program 1,528,941

Support ServicesAttendance

Supervisor/Director $ 41,676 Career Ladder Program 1,500 Clerical Personnel 30,024 Bonus Payments 1,000 Other Salaries and Wages 39,457 Social Security 7,023 State Retirement 10,610 Life Insurance 34 Medical Insurance 13,129 Dental Insurance 300 Unemployment Compensation 80

(Continued)

177

Exhibit K-8



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

Attendance (Cont.)Employer Medicare $ 1,643 Other Contracted Services 22,350

Total Attendance $ 168,826

Health ServicesMedical Personnel $ 228,657 Bonus Payments 1,500 Social Security 14,052 State Retirement 16,949 Life Insurance 84 Medical Insurance 32,823 Dental Insurance 900 Unemployment Compensation 241 Employer Medicare 3,286 Travel 14,054 Other Contracted Services 22,920 Drugs and Medical Supplies 7,277 Other Supplies and Materials 8,071 Other Charges 12,760 Health Equipment 4,572

Total Health Services 368,146

Other Student SupportCareer Ladder Program $ 3,000 Guidance Personnel 587,187 Attendants 52,520 School Resource Officer 100,475 Bonus Payments 1,000 Social Security 44,671 State Retirement 69,114 Life Insurance 318 Medical Insurance 134,938 Dental Insurance 2,250 Unemployment Compensation 669 Employer Medicare 10,447 Evaluation and Testing 23,262 Travel 4,339 Other Contracted Services 17,999 Other Supplies and Materials 3,429

Total Other Student Support 1,055,618

(Continued)

178

Exhibit K-8




Regular Instruction ProgramSupervisor/Director $ 109,362 Career Ladder Program 17,547 Librarians 720,047 Education Media Personnel 405,030 Instructional Computer Personnel 63,059 Clerical Personnel 35,182 Educational Assistants 34,559 Bonus Payments 4,000 Other Salaries and Wages 41,327 Social Security 81,197 State Retirement 125,789 Life Insurance 438 Medical Insurance 171,801 Dental Insurance 3,000 Unemployment Compensation 963 Employer Medicare 19,916 Maintenance and Repair Services - Equipment 852 Travel 18,551 Other Contracted Services 41,898 Library Books/Media 28,708 Other Supplies and Materials 10,526 In Service/Staff Development 5,808 Other Charges 1,700 Other Equipment 1,045


Special Education ProgramSupervisor/Director $ 74,399 Career Ladder Program 4,000 Psychological Personnel 63,280 Assessment Personnel 18,793 Secretary(ies) 32,400 Bonus Payments 2,500 Other Salaries and Wages 53,906 Social Security 14,911 State Retirement 23,160 Life Insurance 72 Medical Insurance 28,449 Dental Insurance 300

(Continued)

179

Exhibit K-8




Special Education Program (Cont.)Unemployment Compensation $ 134 Employer Medicare 3,487 Maintenance and Repair Services - Equipment 956 Travel 7,515 Other Contracted Services 4,981 Other Supplies and Materials 10,516 In Service/Staff Development 2,400 Other Charges 1,800

Total Special Education Program $ 347,959

Vocational Education ProgramSupervisor/Director $ 71,378 Career Ladder Program 3,000 Bonus Payments 500 Social Security 4,267 State Retirement 6,776 Life Insurance 14 Medical Insurance 7,022 Dental Insurance 150 Unemployment Compensation 27 Employer Medicare 998 Travel 5,365

Total Vocational Education Program 99,497

Other ProgramsOn-Behalf Payments to OPEB $ 395,013

Total Other Programs 395,013

Board of EducationSecretary to Board $ 4,000 Board and Committee Members Fees 12,553 In-Service Training 575 Social Security 868 State Retirement 374 Life Insurance 1,763 Medical Insurance 428,963 Unemployment Compensation 187 Employer Medicare 203 Audit Services 20,999

(Continued)

180

Exhibit K-8




Board of Education (Cont.)Dues and Memberships $ 7,144 Legal Services 21,422 Travel 7,710 Other Contracted Services 2,500 Trustee's Commission 233,607 Criminal Investigation of Applicants - TBI 5,760 Refund to Applicant for Criminal Investigation 912 Other Charges 8,000

Total Board of Education $ 757,540

Director of SchoolsCounty Official/Administrative Officer $ 102,866 Assistant(s) 41,676 Career Ladder Program 1,500 Clerical Personnel 27,216 Bonus Payments 1,500 Social Security 10,106 State Retirement 16,162 Life Insurance 38 Medical Insurance 20,136 Dental Insurance 450 Unemployment Compensation 54 Employer Medicare 2,364 Communication 11,616 Dues and Memberships 2,559 Postal Charges 7,083 Travel 2,881 Other Contracted Services 9,913 Office Supplies 5,703 Other Charges 1,000 Administration Equipment 510

Total Director of Schools 265,333

Office of the PrincipalPrincipals $ 1,057,592 Career Ladder Program 14,000 Assistant Principals 424,632 Secretary(ies) 634,617 Other Salaries and Wages 68,603

(Continued)

181

Exhibit K-8




Office of the Principal (Cont.)Social Security $ 130,312 State Retirement 206,185 Life Insurance 843 Medical Insurance 350,297 Dental Insurance 6,992 Unemployment Compensation 1,579 Employer Medicare 30,479 Communication 13,512 Dues and Memberships 10,000 Travel 1,524 Other Contracted Services 70,720 Other Supplies and Materials 2,756 Other Charges 4,296

Total Office of the Principal $ 3,028,939

Fiscal ServicesSupervisor/Director $ 54,162 Clerical Personnel 106,920 Bonus Payments 2,000 Social Security 9,745 State Retirement 16,634 Life Insurance 58 Medical Insurance 19,671 Dental Insurance 450 Unemployment Compensation 107 Employer Medicare 2,279 Dues and Memberships 190 Travel 1,583 Other Contracted Services 18,210 Data Processing Supplies 2,723 Office Supplies 686 Other Supplies and Materials 408 Other Charges 447 Administration Equipment 1,260

Total Fiscal Services 237,533

Operation of PlantCustodial Personnel $ 904,482 Bonus Payments 500

(Continued)

182

Exhibit K-8




Operation of Plant (Cont.)Other Salaries and Wages $ 62,297 Social Security 58,428 State Retirement 95,421 Life Insurance 485 Medical Insurance 208,659 Dental Insurance 3,011 Unemployment Compensation 1,178 Employer Medicare 13,665 Maintenance and Repair Services - Equipment 1,166 Other Contracted Services 38,992 Custodial Supplies 97,706 Electricity 1,218,170 Natural Gas 159,139 Water and Sewer 154,747 Other Supplies and Materials 1,109 Plant Operation Equipment 17,704

Total Operation of Plant $ 3,036,859

Maintenance of PlantSupervisor/Director $ 43,343 Maintenance Personnel 307,081 Bonus Payments 5,000 Social Security 21,464 State Retirement 34,843 Life Insurance 157 Medical Insurance 60,998 Dental Insurance 900 Unemployment Compensation 300 Employer Medicare 5,020 Laundry Service 3,690 Maintenance and Repair Services - Buildings 199,696 Maintenance and Repair Services - Equipment 44,046 Travel 300 Other Contracted Services 38,439 Equipment and Machinery Parts 11,814 Other Supplies and Materials 19,453 Other Charges 13,513 Maintenance Equipment 8,194

Total Maintenance of Plant 818,251

(Continued)

183

Exhibit K-8




TransportationSupervisor/Director $ 64,557 Mechanic(s) 152,786 Bus Drivers 927,083 Bonus Payments 4,000 Other Salaries and Wages 159,690 Social Security 76,156 State Retirement 127,814 Life Insurance 1,308 Medical Insurance 415,572 Dental Insurance 6,435 Unemployment Compensation 2,703 Employer Medicare 18,269 Laundry Service 3,442 Maintenance and Repair Services - Vehicles 7,500 Medical and Dental Services 8,909 Travel 1,900 Other Contracted Services 438 Diesel Fuel 476,766 Garage Supplies 8,496 Gasoline 60,805 Lubricants 13,000 Tires and Tubes 37,820 Vehicle Parts 99,471 Other Supplies and Materials 4,769 Other Charges 11,331 Transportation Equipment 9,604

Total Transportation $ 2,700,624

Central and OtherOther Salaries and Wages $ 26,208 Social Security 1,594 State Retirement 2,673 Life Insurance 14 Medical Insurance 5,627 Dental Insurance 150 Unemployment Compensation 27 Employer Medicare 373 Travel 301 Office Supplies 74

Total Central and Other 37,041

(Continued)

184

Exhibit K-8



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

Community ServicesSupervisor/Director $ 7,823 Other Salaries and Wages 136,938 Social Security 8,966 State Retirement 798 Life Insurance 2 Unemployment Compensation 300 Employer Medicare 2,099 Travel 1,443 Food Supplies 8,739 Other Supplies and Materials 4,113 Other Charges 20,720

Total Community Services $ 191,941

Early Childhood EducationSupervisor/Director $ 36,487 Teachers 582,029 Educational Assistants 101,510 Certified Substitute Teachers 1,946 Non-certified Substitute Teachers 4,706 Social Security 43,006 State Retirement 66,177 Life Insurance 328 Medical Insurance 116,467 Dental Insurance 1,500 Unemployment Compensation 589 Employer Medicare 10,086 Communication 1,878 Contracts with Other Public Agencies 462,837 Maintenance and Repair Services - Equipment 900 Travel 445 Instructional Supplies and Materials 39,202 In Service/Staff Development 307 Other Charges 71,500 Regular Instruction Equipment 89,686

Total Early Childhood Education 1,631,586

Capital OutlayRegular Capital Outlay

Architects $ 2,166

(Continued)

185

Exhibit K-8



General Purpose School Fund (Cont.)Capital Outlay (Cont.)

Regular Capital Outlay (Cont.)Building Improvements $ 377,881

Total Regular Capital Outlay $ 380,047

Other Debt ServiceEducation

Debt Service Contribution to Primary Government $ 219,204 Total Education 219,204

Total General Purpose School Fund $ 44,274,571

School Federal Projects FundInstruction

Regular Instruction ProgramTeachers $ 1,258,362 Educational Assistants 79,548 Bonus Payments 439,500 Other Salaries and Wages 382,523 Certified Substitute Teachers 2,141 Non-certified Substitute Teachers 4,428 Social Security 132,291 State Retirement 163,665 Life Insurance 454 Medical Insurance 307,884 Dental Insurance 1,991 Unemployment Compensation 2,977 Employer Medicare 31,006 Tuition 118,041 Other Contracted Services 19,830 Instructional Supplies and Materials 339,376 Regular Instruction Equipment 90,322


Alternative Instruction ProgramTeachers $ 23,237 Social Security 1,441 State Retirement 2,103 Life Insurance 9 Medical Insurance 4,592 Dental Insurance 90

(Continued)

186

Exhibit K-8



School Federal Projects Fund (Cont.)Instruction (Cont.)

Alternative Instruction Program (Cont.)Unemployment Compensation $ 42 Employer Medicare 338

Total Alternative Instruction Program $ 31,852

Special Education ProgramTeachers $ 202,280 Educational Assistants 581,799 Speech Pathologist 55,286 Other Salaries and Wages 162,651 Certified Substitute Teachers 520 Non-certified Substitute Teachers 52 Social Security 60,615 State Retirement 78,447 Life Insurance 475 Medical Insurance 186,135 Dental Insurance 3,450 Unemployment Compensation 4,472 Employer Medicare 14,184 Maintenance and Repair Services - Equipment 23,049 Other Contracted Services 52,604 Instructional Supplies and Materials 67,295 Other Supplies and Materials 11,850 Special Education Equipment 105,134

Total Special Education Program 1,610,298

Vocational Education ProgramContracts with Other School Systems $ 89,948 Instructional Supplies and Materials 7,488 Vocational Instruction Equipment 7,000


Support ServicesOther Student Support

Guidance Personnel $ 9,233 Other Salaries and Wages 76,337 Social Security 5,216 State Retirement 7,744 Life Insurance 23 Medical Insurance 9,050

(Continued)

187

Exhibit K-8



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

Other Student Support (Cont.)Dental Insurance $ 37 Unemployment Compensation 9 Employer Medicare 1,138 Communication 14,000 Travel 5,000 In Service/Staff Development 2,000 Other Charges 9,124

Total Other Student Support $ 138,911

Regular Instruction ProgramSupervisor/Director $ 37,041 Secretary(ies) 14,456 Other Salaries and Wages 258,008 Certified Substitute Teachers 1,482 Non-certified Substitute Teachers 3,712 Social Security 19,287 State Retirement 28,177 Life Insurance 63 Medical Insurance 24,556 Dental Insurance 150 Unemployment Compensation 111 Employer Medicare 4,509 Consultants 29,640 Travel 45,460 Other Supplies and Materials 161 In Service/Staff Development 175,921 Other Charges 4,425

Total Regular Instruction Program 647,159

Special Education ProgramOther Salaries and Wages $ 30,908 Social Security 1,916 State Retirement 3,153 Life Insurance 11 Dental Insurance 150 Unemployment Compensation 70 Employer Medicare 448 Travel 20,007 Other Supplies and Materials 17,175

(Continued)

188

Exhibit K-8



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

Special Education Program (Cont.)In Service/Staff Development $ 20,491

Total Special Education Program $ 94,329

Vocational Education ProgramTravel $ 1,000


Total School Federal Projects Fund $ 6,002,324

Central Cafeteria FundOperation of Non-Instructional Services

Food ServiceSupervisor/Director $ 41,744 Accountants/Bookkeepers 360,167 Clerical Personnel 30,992 Cafeteria Personnel 846,825 Part-time Personnel 57,609 Other Salaries and Wages 4,044 Social Security 79,507 State Retirement 129,143 Life Insurance 1,280 Medical Insurance 386,962 Dental Insurance 9,592 Unemployment Compensation 3,105 Employer Medicare 18,595 Communication 2,573 Maintenance and Repair Services - Equipment 76,964 Travel 5,006 Other Contracted Services 113,846 Food Supplies 1,468,883 Office Supplies 10,487 Uniforms 9,300 USDA - Commodities 193,739 Other Supplies and Materials 221,749 In Service/Staff Development 2,589 Other Charges 31,243 Food Service Equipment 75,362

Total Food Service $ 4,181,306

Total Central Cafeteria Fund 4,181,306

(Continued)

189

Exhibit K-8



Education Capital Projects FundCapital Projects

Education Capital ProjectsOther Salaries and Wages $ 10,216 Social Security 634 Employer Medicare 148 Architects 245 Building Construction 1,020,422 Furniture and Fixtures 10,000

Total Education Capital Projects $ 1,041,665

Total Education Capital Projects Fund $ 1,041,665

Total Governmental Funds - Greene County School Department $ 55,499,866

190

Exhibit K-9

Greene County, TennesseeSchedule of Detailed Receipts, Disbursements, and Changes in Cash Balances - City Agency FundsFor the Year Ended June 30, 2012

CitySchool

Cities - ADA-Sales Tax Greeneville

Fund Fund Total

Cash ReceiptsCurrent Property Taxes $ 0 $ 2,211,051 $ 2,211,051Trustee's Collections - Prior Years 0 87,757 87,757Trustee's Collections - Bankruptcy 0 92 92Circuit/Clerk and Master Collections - Prior Years 0 33,236 33,236Interest and Penalty 0 25,039 25,039Payments in-Lieu-of Taxes - Local Utilities 0 91,966 91,966Payments in-Lieu-of Taxes - Other 0 203,981 203,981Local Option Sales Tax 6,982,410 2,331,639 9,314,049Bank Excise Tax 0 3,861 3,861Interstate Telecommunications Tax 0 1,221 1,221Other Statutory Local Taxes 0 251 251Marriage Licenses 0 1,119 1,119

Total Cash Receipts $ 6,982,410 $ 4,991,213 $ 11,973,623

Cash DisbursementsRemittance of Revenues Collected $ 6,912,586 $ 4,918,010 $ 11,830,596Trustee's Commission 69,824 73,203 143,027

Total Cash Disbursements $ 6,982,410 $ 4,991,213 $ 11,973,623

Excess of Cash Receipts Over (Under) Cash Disbursements $ 0 $ 0 $ 0Cash Balance, July 1, 2011 0 0 0

Cash Balance, June 30, 2012 $ 0 $ 0 $ 0

191

SINGLE AUDIT SECTION

192





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

January 31, 2013

Greene County Mayor and Board of County Commissioners Greene County, Tennessee To the County Mayor and Board of County Commissioners: We have audited the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Greene County, Tennessee, as of and for the year ended June 30, 2012, which collectively comprise Greene County’s basic financial statements and have issued our report thereon dated January 31, 2013. Our report includes a reference to other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the auditing standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Other auditors audited the financial statements of the Greene County Emergency Communications District as described in our report on Greene County’s financial statements. This report does not include the results of the other auditors testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting The management of Greene County is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Greene County’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Greene County’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Greene County’s internal control over financial reporting.

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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 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. Our consideration of internal control over financial reporting 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 financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether Greene County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and are described in the accompanying Schedule of Findings and Questioned Costs as items 12.01 and 12.02. We noted certain matters that we reported to management of Greene County in separate communications. Greene County’s response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. We did not audit Greene County’s response and, accordingly, we express no opinion on the response. This report is intended solely for the information and use of management, the county mayor, superintendent of highways, director of schools, director of accounts and budgets, County Commission, Board of Education, others within Greene County, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours,


194





REPORT ON COMPLIANCE WITH REQUIREMENTS

THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER

COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

Independent Auditor’s Report

January 31, 2013 Greene County Mayor and Board of County Commissioners Greene County, Tennessee To the County Mayor and Board of County Commissioners: Compliance We have audited Greene County’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. Greene County’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Greene County’s management. Our responsibility is to express an opinion on Greene County’s compliance based on our audit. 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 OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test

195

basis, evidence about Greene County’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Greene County’s compliance with those requirements. In our opinion, Greene County complied, in all material respects, with the 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, 2012. Internal Control Over Compliance The management of Greene County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered Greene County’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, 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 Greene County’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. 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 deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Greene County as of and for the year ended June 30, 2012, and have issued our report thereon dated January 31, 2013. Our audit was performed for the purpose of forming our opinions on the financial statements as a whole. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the 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 financial statements. The information has been subjected to the auditing procedures applied in the audit of the

196

financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Greene County’s response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. We did not audit Greene County’s response and, accordingly, we express no opinion on the response. This report is intended solely for the information and use of management, the county mayor, superintendent of highways, director of schools, director of accounts and budgets, County Commission, Board of Education, others within Greene County, federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours,


197

Greene County, TennesseeSchedule of Expenditures of Federal Awards and State Grants (1)For the Year Ended June 30, 2012

Federal Pass-throughFederal/Pass-through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures

U.S. Department of Agriculture:Direct Programs:

Schools and Roads - Grants to States 10.665 N/A $ 54,336Emergency Watershed Protection Program, Recovery Act 10.923 N/A 260,740

Passed-through State Department of Agriculture:National School Lunch Program (Commodities -

Noncash Assistance) 10.555 N/A 193,739 (3)Passed-through State Department of Education:

Child Nutrition Cluster:School Breakfast Program 10.553 N/A 701,918National School Lunch Program 10.555 N/A 1,934,237 (3)

Total U.S. Department of Agriculture $ 3,144,970

U.S. Bureau of Land Management:Direct Programs:

Payments in-Lieu-of Taxes 15.226 N/A $ 46,702Total U.S. Bureau of Land Management $ 46,702

U.S. Department of Justice:Direct Programs:

Edward Byrne Memorial Justice Assistance Grant Program 16.738 2011-DJ-BX-2565 $ 16,970

Paul Coverdale Forensic Sciences Improvement GrantProgram 16.742 (2) 2,452

Total U.S. Department of Justice $ 19,422

U.S. Department of Energy:Direct Programs:

Energy Efficiency and Conservation Block Grant Program (EECBG), Recovery Act 81.128 GG-11-33299 $ 84,375

Total U.S. Department of Energy $ 84,375

U.S. Department of Education:Passed-through State Department of Education:

Title I Grants to Local Educational Agencies 84.010 N/A $ 1,737,135Special Education Cluster:

Special Education - Grants to States 84.027 N/A 1,773,936Special Education - Preschool Grants 84.173 N/A 25,364

Career and Technical Education - Basic Grants to States 84.048 N/A 112,436Rehabilitation Services - Vocational Rehabilitation

Grants to States 84.126 N/A 11,325Education Technology Cluster:

Education Technology State Grants 84.318 (2) 1,336Education Technology State Grants, Recovery Act 84.386 (2) 5,186

Rural Education 84.358 N/A 140,380English Language Acquisition Grants 84.365 N/A 9,056Improving Teacher Quality State Grants 84.367 N/A 278,447State Fiscal Stabilization Fund (SFSF) - Race-to-the-Top

Incentive Grants, Recovery Act 84.395 N/A 482,672

(Continued)

198

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

Federal Pass-throughFederal/Pass-through Agency/State CFDA Entity IdentifyingGrantor Program Title Number Number Expenditures

U.S. Department of Education (Cont.):Passed-through State Department of Education (Cont.):

State Fiscal Stabilization Fund (SFSF) - GovernmentServices, Recovery Act 84.397 N/A $ 39,986

Education Jobs Fund 84.410 N/A 1,499,332Total U.S. Department of Education $ 6,116,591

U.S. Election Assistance Administration:Passed-through Tennessee Secretary of State:

Help America Vote Act Requirements Payments 90.401 N/A $ 12,700Total U.S. Election Assistance Administration $ 12,700

U.S. Department of Homeland Security:Passed-through State Department of Military:

Disaster Grants - Public Assistance 97.036 (2) $ 789,827Emergency Management Performance Grants 97.042 (2) 109,355

Total U.S. Department of Homeland Security $ 899,182

Total Expenditures of Federal Awards $ 10,323,942

ContractState Grants Number

Juvenile Services Program - State Commission onChildren and Youth N/A (2) $ 9,000

Health Department Program - State Departmentof Health N/A (2) 300,238

Litter Program - State Department of Transportation N/A (2) 76,966Farmers Market Promotion and Retail Grant Program -

State Department of Agriculture N/A (2) 1,000Rural Resources Mobile Farmers Market Grant Program -

State Department of Agriculture N/A (2) 2,500Waste Tire Grant Program - State Department of

Environment and Conservation N/A (2) 28,783Disaster Relief Grant Program - State Department of

Military N/A (2) 130,450Art Student Ticket Subsidy - Tennessee Arts Commission

through State Department of Education N/A (2) 5,509Safe Schools Act Grant - State Department of Education N/A (2) 43,700Internet Connectivity Grant - State Department of Education N/A (2) 25,254Lottery for Education Afterschool Programs -

State Department of Education N/A (2) 57,552Coordinated School Health - State Department of Education N/A (2) 108,552Early Childhood Education Pilot Project - State Department

of Education N/A (2) 1,666,671

Total State Grants $ 2,456,175

N/A = Not Applicable

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

(2) Information not available.(3) Total for CFDA No. 10.555 is $2,127,976.

199

Greene County, Tennessee Schedule of Audit Finding Not Corrected June 30, 2012 Government Auditing Standards require auditors to report the status of uncorrected findings from prior audits. There are no findings from the Annual Financial Report for Greene County, Tennessee, for the year ended June 30, 2011, which have not been corrected.

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SCHEDULE OF FINDINGS AND QUESTIONED COSTS


PART I, SUMMARY OF AUDITOR’S RESULTS

1. An unqualified opinion was issued on the financial statements of Greene County. 2. The audit of the financial statements of Greene County disclosed no significant

deficiencies in internal control. 3. The audit disclosed one instance of noncompliance that is material to the financial

statements of Greene County. 4. The audit disclosed no significant deficiencies in internal control over major

programs. 5. An unqualified opinion was issued on compliance for major programs. 6. The audit revealed no findings that are required to be reported under Section 510(a)

of OMB Circular A-133. 7. The Child Nutrition Cluster: School Breakfast Program and National School Lunch

Program (CFDA Nos. 10.553 and 10.555), Title I Grants to Local Educational Agencies (CFDA No. 84.010), Special Education Cluster: Special Education Grants to States and Special Education – Preschool Grants (CFDA Nos. 84.027 and 84.173), State Fiscal Stabilization Fund (SFSF) – Race-to-the-Top Incentive Grants, Recovery Act (CFDA No. 84.395), Education Jobs Fund (CFDA No. 84.410), and Disaster Grants – Public Assistance (CFDA No. 97.036) were determined to be major programs.

8. A $309,718 threshold was used to distinguish between Type A and Type B federal

programs. 9. Greene County qualified as a low-risk auditee.

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PART II, FINDINGS RELATING TO THE FINANCIAL STATEMENTS Findings and recommendations, as a result of our examination, are presented below. We reviewed these findings and recommendations with management to provide an opportunity for their response. The director of schools provided a written response on his finding, which is paraphrased in this report. Other management officials did not provide responses for inclusion in this report. OFFICE OF DIRECTOR OF SCHOOLS FINDING 12.01 THE SCHOOL DEPARTMENT VIOLATED THE CONFLICT OF

INTEREST STATUTE BY MAKING PURCHASES FROM A BUSINESS OWNED BY A COUNTY COMMISSIONER (Noncompliance Under Government Auditing Standards)

During the year, the School Department expended $6,000 from the General Purpose School Fund and $22,350 from the Education Capital Projects Fund for contracted construction work performed by A & W Farms, a business owned by Charles White, a member of the County Commission. These expenditures violate the state conflict of interest statute, Section 12-4-101(a)(1), Tennessee Code Annotated (TCA). This statute states that “It is unlawful for any officer, committee member, director, or other person whose duty it is to vote for, let out, overlook, or in any manner to superintend any work or any contract in which any municipal corporation, county … shall or may be interested, to be directly interested in any such contract.” In Opinion No. 91-31, the state attorney general opined that “…a construction contract between a county commissioner and the county Board of Education would violate Tennessee’s conflict of interest law … and that a county commissioner cannot enter into such a contract.” RECOMMENDATION County officials should review these payments and resolve the conflict of interest. MANAGEMENT’S RESPONSE – DIRECTOR OF SCHOOLS Management agrees that all conflicts of interest should be avoided. However, under traditional rules, conflicts of interest are to be called to the attention of the person offering the contract of work by the person who is about to endorse the contract and engage in the scope of work. There are very few reliable ways that a School Department can check literally every contract for conflicts of interest with the vendors. The language of the statute relied upon by auditors for declaring this contract is sufficiently vague that no less than seven Attorney General Opinions have been requested for clarification. Indeed, at least one opinion is in conflict with the others on this subject. It should be remembered that opinions of the Attorney General are persuasive only and do not constitute binding law. See: Washington County Bd. of Education v. Market America, Inc., 693 S.W.2d 344, 1985 Tenn. LEXIS 604 (Tenn. 1985). In this opinion, the Supreme Court of Tennessee ruled that opinions of the Attorney General are persuasive only and not binding upon any court or agency of local government. Therefore, the audit report regarding this

202

particular finding should be reworded to indicate that it is based upon an opinion of the Attorney General, and not upon the clear and unambiguous language of the statute. AUDITOR’S COMMENT Until any specific issue has been litigated, we (and others) must rely on previous opinions of the State Attorney General to interpret statutory provisions. As noted in the opinion cited in the finding above, the attorney general opined that a county commissioner, whose duty it is to provide funds for construction contracts entered into by the county school board, cannot enter into such a contract with the board of education without violating Section 12-4-101(a)(1), TCA. This opinion is very specific to the situation in question, and we were unable to find any subsequent opinion that contradicts 91-31.

______________________ OFFICE OF TRUSTEE FINDING 12.02 SOME COUNTY FUNDS WERE NOT INVESTED IN

ACCORDANCE WITH STATE STATUTE (Material Noncompliance Under Government Auditing Standards)

The trustee used an investment company to invest idle county funds. As of June 30, 2012, the balance of the funds invested totaled $1,934,926. Of this amount, $73,629 was invested in mutual funds and $1,861,296 was invested in 61 various government bonds. The company was given the authority to act on behalf of the county to select and dispose of various investment instruments and to receive compensation for its services rendered. The trustee did not sufficiently monitor the activity of the invested funds to ensure the investments were of the type permitted by state statute. As a result, many investments made by the investment company were not permitted by state statutes as follows:

A. As stated above, the trustee had $73,629 invested in a mutual fund at June 30, 2012. Section 5-8-301, Tennessee Code Annotated (TCA), does not permit the investment of monies in mutual funds. This statute provides that county funds be invested in: (a) bonds, notes, or treasury bills of the United States or other obligations guaranteed as to principal and interest by the United States or any of its agencies; (b) certificates of deposit and other evidence of deposits at Tennessee state chartered banks and savings and loan associations and federally chartered banks and savings and loan associations; (c) certain repurchase agreements; (d) the state investment pool; (e) bonds issued by other states and political subdivisions thereof; (f) nonconvertible debt securities of certain federal government sponsored enterprises; and (g) the county’s own debt issued in accordance with Title 9, Chapter 21, TCA. In addition to the mutual funds, various other questionable investments were purchased. These included bonds that were issued by municipal authorities as well as bonds issued by Puerto Rico. Municipal authority bonds and territorial bonds are not specified as authorized investments in the aforementioned statute.

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B. Some of the bonds purchased were either not rated or were rated lower than minimum requirements established by Section 5-8-301(b), TCA. This statute requires that investments in bonds of any other state or political subdivision thereof be rated A or higher by a nationally recognized rating service. Some of the bonds held on June 30, 2012, were rated as low as Baa2 by Moody’s and BBB by Standard and Poors. Six of those issues totaling $270,878 had ratings lower than A. Four of the issues totaling $89,768 had a “withdrawn rating” from Moody’s. We were unable to determine the rating on six issues with values totaling $190,794.

Greene County has an Investment Committee, and we were told that the Investment Committee approved the above-noted investments; however, minutes were not kept for the meetings of the Investment Committee. It should be noted that the trustee liquidated the investment account on September 6, 2012.

RECOMMENDATION The trustee should monitor investment activity sufficiently to ensure that investments are of the type authorized by state statute. Official minutes should be maintained of all Investment Committee meetings.

______________________

BEST PRACTICES

The Division of Local Government Audit strongly believes that the items noted below are best practices 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 Greene County. ITEM 1: GREENE COUNTY SHOULD ADOPT A CENTRAL SYSTEM OF

ACCOUNTING, BUDGETING, AND PURCHASING Greene 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 Greene 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.

___________________________

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ITEM 2: GREENE COUNTY SHOULD ESTABLISH AN AUDIT COMMITTEE Greene County does not have an Audit Committee. An Audit Committee can assist the County Commission by providing independent and objective reviews of the financial reporting process, internal controls, the audit function, and would be responsible for monitoring management’s plans to address various risks. County officials should establish an Audit Committee as a best practice.

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PART III, FINDINGS AND QUESTIONED COSTS FOR FEDERAL AWARDS

There were no findings and questioned costs for federal awards.

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GREENE COUNTY, TENNESSEE AUDITEE REPORTING RESPONSIBILITIES

For the Year Ended June 30, 2012 There were no audit findings relative to federal awards presented in the prior- or current-years’ Schedules of Findings and Questioned Costs.

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