2009 Audit Report

TANEY COUNTY, MISSOURI

BASIC FINANCIAL STATEMENTS

Year Ended December 31, 2009
 TABLE OF CONTENTS

INDEPENDENT AUDITORS’ REPORT ............................................................................................................ 4

MANAGEMENT’S DISCUSSION AND ANALYSIS ....................................................................................... 7

BASIC FINANCIAL STATEMENTS

Statement of Net Assets – Modified Cash Basis ............................................................................................ 13

Statement of Net Assets – Taney County Regional Sewer District
and Health Center ..................................................................................................................................... 14

Statement of Activities – Modified Cash Basis .............................................................................................. 15

Statement of Activities – Taney County Regional Sewer District
and Health Center ..................................................................................................................................... 16

Statement of Assets and Fund Balances – Governmental
Funds – Modified Cash Basis ................................................................................................................... 17

Statement of Receipts, Disbursements and Changes in Fund
Balances – Governmental Funds – Modified Cash Basis ......................................................................... 18

Statement of Net Assets – Proprietary Funds – Modified Cash Basis ............................................................ 19

Statement of Receipts, Disbursements and Changes in Net
Assets – Proprietary Funds – Modified Cash Basis .................................................................................. 20

Statement of Cash Flows – Proprietary Funds – Modified Cash Basis .......................................................... 21

Statement of Assets and Liabilities – Agency Funds – Modified Cash Basis ................................................ 22

Notes to Basic Financial Statements ............................................................................................................... 24

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Funding Progress ........................................................................................................................ 47

Budgetary Comparison Schedule – General Fund – Modified Cash Basis .................................................... 48

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 TABLE OF CONTENTS

OTHER FINANCIAL INFORMATION

Budgetary Comparison Schedule – Road and Bridge Trust Fund –
Modified Cash Basis ................................................................................................................................. 50

Budgetary Comparison Schedule – Road and Bridge Fund –
Modified Cash Basis ................................................................................................................................. 51

Combining Statement of Assets and Fund Balances – Non-Major
Special Revenue Funds – Modified Cash Basis ....................................................................................... 53

Combining Statement of Receipts, Disbursements, and Changes in Fund
Balance – Non-Major Special Revenue Funds – Modified Cash Basis.................................................... 55

Independent Auditors' Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .......................................... 57

Independent Auditors’ Report on Compliance with Requirements
Applicable to Each Major Program and on Internal Control over
Compliance in Accordance with OMB Circular A-133 ........................................................................... 59

Schedule of Expenditures of Federal Awards ................................................................................................. 61

Summary Schedule of Findings and Questioned Costs .................................................................................. 63

Schedule of Prior Audit Findings ................................................................................................................... 65

3
 INDEPENDENT AUDITORS’ REPORT

Taney County Commission
Taney County
Forsyth, Missouri

We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of Taney County, Missouri, as of and for the year ended December 31, 2009, which
collectively comprise the County’s basic financial statements as listed in the table of contents. These financial
statements are the responsibility of Taney County, Missouri's management. Our responsibility is to express
opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatements. 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 provides a
reasonable basis for our opinions.

As described in Note A, the basic financial statements of the Primary Government of Taney County, the
Developmentally Disabled Board, and the Dorgan-Weaver Housing Corporation were prepared on the modified
cash basis, which is a comprehensive basis of accounting other than accounting principles generally accepted in
the United States of America.

In our opinion, the basic financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities and the business-type activities of the Primary Government of
Taney County, the Developmentally Disabled Board, and the Dorgan-Weaver Housing corporation, each major
fund, and the aggregate remaining fund information of Taney County, Missouri, as of December 31, 2009, and
the respective changes in the financial position and cash flows, where applicable, thereof for the year then
ended, in conformity with the basis of accounting described in Note A.

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Taney County Commission
Taney County
Forsyth, Missouri

Further, in our opinion, the basic financial statements of the Taney County Regional Sewer District and the
Taney County Health Center present fairly, in all material respects, the financial position of the Taney County
Regional Sewer District and the Taney County Health Center as of December 31, 2009, and the respective
changes in financial position 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 July 15, 2010, on our
consideration of the County’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, 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.

The Management’s Discussion and Analysis, budgetary comparison information, and schedule of funding
progress and employer contributions are not a required part of the basic financial statements but are
supplementary information required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the required supplementary information. However, we did not audit the
information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Taney County, Missouri’s basic financial statements. The combining fund financial statements are
presented for purposes of additional analysis and are not a required part of the basic financial statements. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations, and is not a required part of the basic financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole on
the basis of accounting described in Note A.

DAVIS, LYNN & MOOTS, P.C.
July 15, 2010

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MANAGEMENT’S DISCUSSION AND ANALYSIS
 TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2009

Our discussion and analysis of Taney County’s financial performance provides an overview of the County’s
financial activities for the year ended December 31, 2009, within the limitations of the County’s modified cash
basis of accounting. Please read it in conjunction with the County’s financial statements.

FINANCIAL HIGHLIGHTS

 The overall net assets of the County decreased by $3,383,223.
 The fund balance for the General Fund decreased by $2,794,192. Using the modified cash basis
does not take into consideration capital improvements.
 The fund balance for the Road and Bridge Trust Fund increased by $1,565,533.
 The Road and Bridge Fund decreased $2,049,190.
 The decrease in the General Fund balance can be attributed to the final payments on capital
improvements, mainly the judicial facility.
 The Road and Bridge department has also continued to do some capital improvements. This
department will be looking to reduce operating expense in the next year because we are not
anticipating more capital improvements.
 These funds have also experienced a decrease in revenue because of the economy.

USING THIS ANNUAL REPORT

This annual report is presented in a format consistent with the presentation requirements of the Governmental
Accounting Standards Board (GASB) Statement No. 34 as applicable to the County’s modified cash basis of
accounting.

Report Components

Government-Wide Financial Statements: The Statement of Net Assets and the Statement of Activities
provide information about the activities of the County as a whole and present a longer-term view of the
County’s finances.

Fund Financial Statements: Fund financial statements focus on the individual parts of the County
government. Fund financial statements also report the County operations in more detail than the government-
wide statements by providing information about the County’s major funds. These statements tell how these
services were financed in the short term as well as what remains for future spending.

Notes to the Financial Statements: The notes to the financial statements are an integral part of the
government-wide and fund financial statements and provide expanded explanation and detail regarding the
information reported in the statements.

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2009

Required Supplementary Information: This Management’s Discussion and Analysis and the budgetary
comparison schedules represent financial information required by GASB to be presented. Such information
provides users of this report with additional data that supplements the government-wide statements, fund
financial statements, and notes (referred to as “the basic financial statements”).

Other Financial Information: This part of the annual report includes optional financial information, which
includes the combining statements for the County’s nonmajor funds and reports required by the Federal
Government. This other financial information is provided to address certain needs of various users of the
County’s annual report.

Basis of Accounting

The County has elected to present its financial statements on the modified cash basis of accounting. This
modified cash basis of accounting is a basis of accounting other than accounting principles generally accepted
in the United States of America. Basis of accounting is a reference to when financial events are recorded, such
as the timing for recognizing receipts, disbursements, and their related assets and liabilities. Under the
County’s modified cash basis of accounting, receipts and disbursements and the related assets are recorded
when they result from cash transactions. The modification to the cash basis relates to the presentation of
investments.

As a result of the use of the modified cash basis of accounting, certain assets and their related revenue (such as
accounts receivable for revenue billed or services provided not yet collected) and liabilities and their related
expenses (such as accounts payable for goods and services received but not yet paid, and accrued expenses and
liabilities) are not recorded in these financial statements. Therefore, when reviewing the financial information
and discussion within this annual report, the reader should keep in mind the limitations resulting from the use of
the modified cash basis of accounting.

Government-wide Statement of Net Assets and the Statement of Activities

Our financial analysis of the County as a whole begins on page 9. The government-wide financial statements
are presented on pages 13-16. One of the most important questions asked about the County’s finances is, “Is
the County as a whole better off or worse off as a result of the year’s activities?”. The Statement of Net Assets
and the Statement of Activities report information about the County as a whole and about its activities in a way
that helps answer this question. These statements include all of the County’s assets resulting from the use of the
modified cash basis of accounting.

The statements report the County’s net assets and changes in them. Over time, increases and decreases in the
County’s net assets are one indicator of whether its financial health is improving or deteriorating. The reader
will need to consider other non-financial factors, however, such as changes in the County tax base, and the
condition of the County’s facilities, to assess the overall health of the County.

The Statement of Activities is presented by its governmental functions which include general government,
judicial, public safety, public works, health and welfare, highway and roads, other activities and transfer station.
The Statement of Activities shows the net cost of these functions before considering the general receipts of the
County.
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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2009

Fund Financial Statements

Our analysis of the County’s funds begins on page 11. The fund financial statements begin on page 17 and
provide detailed information about the County’s funds. These funds are required to be established by state law
and by bond covenants. These fund financial statements help the reader to determine whether there are more or
fewer financial resources that can be spent in the near future for County programs.

 Governmental Funds – Most of the County’s basic services are reported in governmental funds,
which focus on how money flows into and out of those funds and the balances left at year-end
that are available for spending. The governmental fund statements provide a detailed short-term
view of the County’s general government operations and the basic services it provides.
Governmental fund information helps the reader determine whether there are more or fewer
financial resources that can be spent in the near future to finance the County’s programs.

 Proprietary Funds – When the County charges customers for the services it provides – whether to
outside customers or to other units of the County – these services are generally reported in
proprietary funds. The Internal Service Fund is used to account for charges made to other units
of government for dental insurance premiums and certain other employee benefits.

FINANCIAL ANALYSIS OF THE COUNTY AS A WHOLE

Net Assets – Modified Cash Basis

December 31,
2009 2008
ASSETS
Cash and investments $ 18,256,768 $ 21,639,991
TOTAL ASSETS $ 18,256,768 $ 21,639,991
NET ASSETS
Unrestricted $ 18,256,768 $ 21,639,991
TOTAL NET ASSETS $ 18,256,768 $ 21,639,991

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2009

Changes in Net Assets – Modified Cash Basis

Year Ended December 31,
2009 2008
RECEIPTS
Program Receipts
Charges for services $ 5,591,476 $ 5,915,463
Operating grants and contributions 1,417,739 106,975
Capital grants and contributions 105,226 430,244
General Receipts
Sales tax receipts 14,687,116 15,735,092
Motor vehicle sales tax 244,308 256,497
Gas tax 834,465 825,454
Telephone tax 507,994 502,847
Other taxes 129,110 133,512
Interest 458,445 1,177,603
Other receipts 303,854 348,601
TOTAL RECEIPTS 24,279,733 25,432,288
DISBURSEMENTS
General government 6,124,622 5,568,943
Judicial 1,163,162 1,200,426
Public safety 4,450,447 4,646,262
Public works 267,614 177,143
Highway and roads 9,252,981 13,392,323
Airport 1,144,093 991,286
Debt service 1,301,145 1,272,479
Other 3,004,420 7,695,348
Transfer station 954,472 1,103,046
TOTAL DISBURSEMENTS 27,662,956 36,047,256
(DECREASE) IN NET ASSETS $ (3,383,223) $ (10,614,968)

Overall receipts of the County decreased by $1,152,562 from the prior year. Tax revenues were down
$1,050,409, which represents an 8.4% decrease from the prior year. Overall disbursements of the County were
down $8,384,300.

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2009

FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS

Certain funds experienced noteworthy changes from the prior year and are highlighted as follows:

 The General Fund balance decreased by $2,794,192 for the year ended December 31, 2009.
 The Road and Bridge Fund balance decreased by $2,049,190 for the year ended December 31,
2009.
 The Road and Bridge Trust Fund increased by $1,565,533, which increased the fund balance to
$4,990,215 as of December 31, 2009.
 The General Fund had a decrease in receipts in sales tax. There were also significant payments
made on the final payments to finish the judicial facility.
 The Road and Bridge Fund along with the Road and Bridge Trust Fund as a combined total
decreased a total of $483,657. Management has been actively using these funds to pay for
capital improvements in the past few years. Most if not all of those projects are nearly finished.
It will be important to look at the operating expenses in these two funds in the next year.

FINANCIAL ANALYSIS BUDGET VERSUS ACTUAL RESULTS – GENERAL FUND

Budget
Original Final Actual
RECEIPTS
Taxes $ 8,630,700 $ 8,630,700 $ 8,285,480
Commissions 507,500 507,500 608,306
Licenses and permits 50,500 50,500 89,462
Intergovernmental receipts 568,846 568,846 435,002
Fees and charges 3,618,000 3,618,000 2,591,819
Other 306,850 306,850 410,576
TOTAL RECEIPTS $ 13,682,396 $ 13,682,396 $ 12,420,645
DISBURSEMENTS
General government $ 5,113,999 $ 5,113,999 $ 5,177,717
Judicial 1,076,778 1,076,778 1,113,506
Public safety 4,317,712 4,317,712 3,908,740
Public works 389,582 389,582 267,614
Other 13,742,456 13,742,456 3,004,420
Airport 1,630,707 1,630,707 1,144,093
Debt service 1,400,000 1,400,000 1,301,145
TOTAL DISBURSEMENTS $ 27,671,234 $ 27,671,234 $ 15,917,235

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2009

It is the County’s practice to budget monies that are available for use in the capital improvements even though
we do not expect to spend those monies. Therefore the difference between the budgeted and the actual will be
the amount that can be carried forward to be used as capital improvements for the next year. The County’s
actual operating expenses have been decreased in 2009.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

The 2010 budget cycle will include revenues and expenses based on expectations of the 2010 economy.
Management is anticipating a slower economy and will reflect that by budgeting for somewhat less revenues in
2010. All of the different funds have a balance to carry forward, some more than others. The anticipated
decrease in revenues will make 2010 a year when some funds will spend more funds for operations than are
brought in. The difference will cause a smaller balance to take forward in 2011. This will be a time when we
look to find ways to function even more efficiently.

CONTACTING THE COUNTY’S FINANCIAL MANAGEMENT

You may contact the Auditor’s office at PO Box 1407, Forsyth, MO 65653 for more information. The phone
number to contact is 417-546-7201.

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TANEY COUNTY, MISSOURI
STATEMENT OF NET ASSETS – MODIFIED CASH BASIS
December 31, 2009

Primary Government Component Units
Develop- Dorgan-
Business- mentally Weaver
Governmental Type Disabled Housing
Activities Activities Total Board Corporation
ASSETS
Cash and investments $ 17,561,655 $ 695,113 $ 18,256,768 $ 1,696,190 $ 43,915
TOTAL ASSETS $ 17,561,655 $ 695,113 $ 18,256,768 $ 1,696,190 $ 43,915
NET ASSETS
Unrestricted $ 17,561,655 $ 695,113 $ 18,256,768 $ 1,696,190 $ 43,915
TOTAL NET ASSETS $ 17,561,655 $ 695,113 $ 18,256,768 $ 1,696,190 $ 43,915

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF NET ASSETS – TANEY COUNTY REGIONAL SEWER DISTRICT AND HEALTH CENTER
December 31, 2009

Component Units
Taney Taney
County County
Regional Health
Sewer District Center
ASSETS
Cash and investments - unrestricted $ 26,924,239 $ 872,592
Ad valorem taxes receivable, net - 1,042,333
Accounts receivable 90,604 132,174
Prepaid expenses - 5,571
Restricted cash and investments 1,567,720 -
Deferred Bond Issuance Costs 202,033 9,329
Capital Assets:
Non-depreciable 5,470,565 200,000
Depreciable, net 43,558,784 2,441,763
TOTAL ASSETS 77,813,945 4,703,762
LIABILITIES
Current
Accounts payable 100,716 11,631
Accrued expenses 64,660 72,302
Deposits payable 85,978 -
Accrued interest payable 282,410 -
Current maturities of long-term debt 790,000 42,485
TOTAL CURRENT LIABILITIES 1,323,764 126,418
Noncurrent
Arbitrage payable 61,668 -
Certificates of participation debt - 750,892
Compensated absences - 105,096
Revenue bonds payable 11,710,000 -
TOTAL NONCURRENT LIABILITIES 11,771,668 855,988
TOTAL LIABILITIES 13,095,432 982,406
NET ASSETS
Invested in capital assets, net of related debt 36,529,349 1,857,715
Restricted for debt service 1,420,074 -
Unrestricted 26,769,090 1,863,641
TOTAL NET ASSETS $ 64,718,513 $ 3,721,356

See accompanying notes.
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TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES – MODIFIED CASH BASIS
Year Ended December 31, 2009
Primary Government Componet Units
Net (Disbursements), Receipts
Program Receipts and Changes in Net Assets Develop- Dorgan-
Charges Operating Capital Business- mentally Weaver
for Grants and Grants and Governmental Type Disabled Housing
Functions/Programs Disbursements Services Contributions Contributions Activities Activities Total Board Corporation
Primary Government
Governmental Activities
General government $ (6,124,622) $ 2,806,048 $ - $ 95,198 $ (3,223,376) $ - $ (3,223,376)
Judicial (1,163,162) 444,406 6,983 - (711,773) - (711,773)
Public safety (4,450,447) 841,462 10,686 10,028 (3,588,271) - (3,588,271)
Public works (267,614) - - - (267,614) - (267,614)
Highway and roads (9,252,981) - 1,400,070 - (7,852,911) - (7,852,911)
Airport (1,144,093) 613,823 - - (530,270) - (530,270)
Debt service (1,301,145) - - - (1,301,145) - (1,301,145)
Other (3,004,420) - - - (3,004,420) - (3,004,420)
TOTAL GOVERNMENTAL
ACTIVITIES (26,708,484) 4,705,739 1,417,739 105,226 (20,479,780) - (20,479,780)
Business-Type Activities
Transfer station (954,472) 885,737 - - - (68,735) (68,735)
TOTAL BUSINESS-TYPE
ACTIVITIES (954,472) 885,737 - - - (68,735) (68,735)
TOTAL PRIMARY GOVERNMENT $ (27,662,956) $ 5,591,476 $ 1,417,739 $ 105,226 (20,479,780) (68,735) (20,548,515)
Component Units
Developmentally Disabled Board $ (1,024,991) $ 7,572 $ - $ 60,090 $ (957,329) $ -
Dorgan-Weaver Housing Corp. (61,469) 66,892 - - - 5,423
TOTAL COMPONENT UNITS $ (1,086,460) $ 74,464 $ - $ 60,090 (957,329) 5,423
General Receipts and Transfers:
Ad valorem taxes - - - 810,119 -
Sales taxes 14,687,116 - 14,687,116 - -
Motor vehicle sales taxes 244,308 - 244,308 - -
Gas taxes 834,465 - 834,465 - -
Telephone taxes 507,994 - 507,994 - -
Other taxes 129,110 - 129,110 - -
Interest 438,229 20,216 458,445 41,126 331
Other receipts 303,854 - 303,854 16,705 144
Transfers 20,366 (20,366) - - -
Total General Receipts and Transfers 17,165,442 (150) 17,165,292 867,950 475
Increase (Decrease) in Net Assets (3,314,338) (68,885) (3,383,223) (89,379) 5,898
Net Assets, Beginning of year 20,875,993 763,998 21,639,991 1,785,569 38,017
Net Assets, End of year $ 17,561,655 $ 695,113 $ 18,256,768 $ 1,696,190 $ 43,915

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES – TANEY COUNTY REGIONAL SEWER DISTRICT AND HEALTH CENTER
Year Ended December 31, 2009

Component Units
Taney
Program Receipts County Taney
Charges Operating Capital Regional County
for Grants and Grants and Sewer Health
Functions/Programs Disbursements Services Contributions Contributions District Center
Component Units
Taney County Regional
Sewer District $ (4,475,835) $ 986,709 $ - $ - $ (3,489,126) $ -
Taney County Health Center (3,369,902) 2,110,915 - - - (1,258,987)
TOTAL COMPONENT UNITS $ (7,845,737) $ 3,097,624 $ - $ - (3,489,126) (1,258,987)

General Receipts
Ad valorem taxes - 1,345,972
Sales tax 6,519,940 -
Interest 778,473 22,806
Other receipts 9,980 -
Total General Receipts 7,308,393 1,368,778
Increase in Net Assets 3,819,267 109,791
Net Assets, Beginning of year 60,899,246 3,611,565
Net Assets, End of year $ 64,718,513 $ 3,721,356

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND FUND BALANCES – GOVERNMENTAL FUNDS – MODIFIED CASH
BASIS
December 31, 2009

Road and Road and Nonmajor Total
General Bridge Bridge Governmental Governmental
Fund Trust Fund Fund Funds Funds
ASSETS
Cash and investments $ 10,256,890 $ 4,990,215 $ 326,237 $ 1,984,612 $ 17,557,954
TOTAL ASSETS $ 10,256,890 $ 4,990,215 $ 326,237 $ 1,984,612 $ 17,557,954
FUND BALANCES
Fund Balances
Unreserved, reported in:
General Fund $ 10,256,890 $ - $ - $ - $ 10,256,890
Special Revenue Funds - 4,990,215 326,237 1,984,612 7,301,064
TOTAL FUND BALANCES $ 10,256,890 $ 4,990,215 $ 326,237 $ 1,984,612 $ 17,557,954

Fund Balance Governmental Funds $ 17,557,954
Some of the amounts reported for Governmental activities
in the Statement of Net Assets are different because internal
service fund assets are included with Governmental activities. 3,701
Net Assets of Governmental Activities $ 17,561,655

See accompanying notes.
17
TANEY COUNTY, MISSOURI
STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN FUND BALANCES –
GOVERNMENTAL FUNDS – MODIFIED CASH BASIS
Year Ended December 31, 2009

Road and Road and Nonmajor Total
General Bridge Bridge Governmental Governmental
Fund Trust Fund Fund Funds Funds
RECEIPTS
Taxes $ 8,285,480 $ 6,523,261 $ 1,086,258 $ 507,994 $ 16,402,993
Collector's commission 608,306 - - - 608,306
Licenses and permits 89,462 - - - 89,462
Intergovernmental receipts 435,002 1,375,746 - 44,335 1,855,083
Fees and charges 2,591,819 - - 1,084,034 3,675,853
Other 410,576 135,545 120,159 75,803 742,083
TOTAL RECEIPTS 12,420,645 8,034,552 1,206,417 1,712,166 23,373,780
DISBURSEMENTS
Current
General government 5,177,717 - - 920,321 6,098,038
Judicial 1,113,506 - - 49,656 1,163,162
Public safety 3,908,740 - - 522,390 4,431,130
Public works 267,614 - - - 267,614
Airport 1,144,093 - - - 1,144,093
Other 3,004,420 - - - 3,004,420
Highway and roads - 6,527,315 2,685,504 - 9,212,819
Debt service 1,301,145 - - - 1,301,145
TOTAL DISBURSEMENTS 15,917,235 6,527,315 2,685,504 1,492,367 26,622,421
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (3,496,590) 1,507,237 (1,479,087) 219,799 (3,248,641)
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) 702,398 58,296 (570,103) (241,439) (50,848)
TOTAL OTHER FINANCING
SOURCES (USES) 702,398 58,296 (570,103) (241,439) (50,848)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (2,794,192) 1,565,533 (2,049,190) (21,640) (3,299,489)
FUND BALANCE, January 1 13,051,082 3,424,682 2,375,427 2,006,252 20,857,443
FUND BALANCE, December 31 $ 10,256,890 $ 4,990,215 $ 326,237 $ 1,984,612 $ 17,557,954

(Deficit) of Receipts and Other Sources
Over Disbursements and Other Uses $ (3,299,489)
Some of the amounts reported for Governmental activities in the
Statement of Activities are different because the Internal Service
Fund receipts and disbursements are included with Governmental activities. (14,849)
(Decrease) in Net Assets $ (3,314,338)

See accompanying notes.
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TANEY COUNTY, MISSOURI
STATEMENT OF NET ASSETS – PROPRIETARY FUNDS – MODIFIED CASH BASIS
December 31, 2009
Internal
Enterprise Service
Fund Fund
Transfer Employee
Station Fund Benefits Fund
ASSETS
Current Assets
Cash and cash equivalents $ 695,113 $ 3,701
TOTAL ASSETS $ 695,113 $ 3,701
Net Assets
Unrestricted $ 695,113 $ 3,701
TOTAL NET ASSETS $ 695,113 $ 3,701

See accompanying notes.

19
TANEY COUNTY, MISSOURI
STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN NET ASSETS – PROPRIETARY
FUNDS – MODIFIED CASH BASIS
Year Ended December 31, 2009

Internal
Enterprise Service
Fund Fund
Transfer Employee
Station Fund Benefits Fund
OPERATING RECIEPTS
Charges for services $ 885,737 $ -
TOTAL OPERATING RECEIPTS 885,737 -
OPERATING DISBURSEMENTS
Insurance claims and disbursements 11,172 87,718
Salaries and employee benefits 191,326 -
Supplies 46,386 -
Telephone and utilities 2,459 -
Repair and maintenance 65,611 -
Landfill services 635,295 -
Other 2,223 -
TOTAL OPERATING DISBURSEMENTS 954,472 87,718
OPERATING (LOSS) (68,735) (87,718)
NONOPERATING RECEIPTS
Interest receipts 20,216 519
Other receipts - 1,136
TOTAL NONOPERATING RECEIPTS 20,216 1,655
(LOSS) BEFORE OPERATING TRANSFERS (48,519) (86,063)
Operating transfers in (out) (20,366) 71,214
NET (LOSS) (68,885) (14,849)
NET ASSETS, January 1 763,998 18,550
NET ASSETS, December 31 $ 695,113 $ 3,701

See accompanying notes.

20
TANEY COUNTY, MISSOURI
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS – MODIFIED CASH BASIS
Year Ended December 31, 2009
Internal
Enterprise Service
Fund Fund
Transfer Employee
Station Fund Benefits Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 885,737 $ -
Cash paid to suppliers (763,146) (86,582)
Cash paid to employees (191,326) -
NET CASH (USED)
BY OPERATING ACTIVITIES (68,735) (86,582)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 20,216 519
NET CASH PROVIDED BY
INVESTING ACTIVITIES 20,216 519
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from (to) other funds (20,366) 71,214
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (20,366) 71,214
NET (DECREASE) IN
CASH AND CASH EQUIVALENTS (68,885) (14,849)
CASH AND CASH EQUIVALENTS, Beginning of year 763,998 18,550
CASH AND CASH EQUIVALENTS, End of year $ 695,113 $ 3,701

RECONCILIATION OF OPERATING (LOSS) TO
NET CASH (USED) BY OPERATING ACTIVITIES:
Operating (loss) $ (68,735) $ (87,718)
Adjustments to reconcile operating (loss)
to net cash (used) by operating activities:
Other receipts - 1,136
NET CASH (USED)
BY OPERATING ACTIVITIES $ (68,735) $ (86,582)

See accompanying notes.
21
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS
December 31, 2009

Sheriff's Sheriff's Sheriff's Sheriff's Land Prosecuting
Office Office Office Office Collector Sales Unclaimed Attorney Fines and Criminal
Prisoner Transport General Bond of Revenue Surplus Fee Restitution Forfeitures Cost
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 20 $ 110 $ 139 $ 12 $ 39,639,063 $ 123,021 $ 35,978 $ 26,128 $ 85,570 $ 764
TOTAL ASSETS $ 20 $ 110 $ 139 $ 12 $ 39,639,063 $ 123,021 $ 35,978 $ 26,128 $ 85,570 $ 764
LIABILITIES
Due to others $ 20 $ - $ - $ 12 $ 272,211 $ 123,021 $ 35,978 $ 26,128 $ - $ -
Due to other governments - 110 139 - 39,366,852 - - - 85,570 764
TOTAL LIABILITIES $ 20 $ 110 $ 139 $ 12 $ 39,639,063 $ 123,021 $ 35,978 $ 26,128 $ 85,570 $ 764

See accompanying notes.

22
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS (CONTINUED)
December 31, 2009

Prosecuting
Attorney Protest Prosecuting
Circuit DSS Witness Recorder's Tax Flood Attorney Juvenile
Clerk Supplemental Fee User Fee Account Control Bad Check Restitution
Fund Fund Fund Fund Fund Fund Fund Fund Total
ASSETS
Cash and investments $ 513,181 $ 3,320 $ 9,270 $ 199,706 $ 297,562 $ 52,013 $ 10,529 $ 335 $ 40,996,721
TOTAL ASSETS $ 513,181 $ 3,320 $ 9,270 $ 199,706 $ 297,562 $ 52,013 $ 10,529 $ 335 $ 40,996,721
LIABILITIES
Due to others $ - $ - $ 9,270 $ - $ 297,562 $ - $ 10,529 $ 335 $ 775,066
Due to other governments 513,181 3,320 - 199,706 - 52,013 - - 40,221,655
TOTAL LIABILITIES $ 513,181 $ 3,320 $ 9,270 $ 199,706 $ 297,562 $ 52,013 $ 10,529 $ 335 $ 40,996,721

See accompanying notes.

23
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Taney County, Missouri (the County) is a county of the 1st class and operates under a three member County
Commission.

The accounting methods and procedures adopted by the primary government of Taney County, Missouri,
conform to the modified cash basis of accounting as applied to governmental entities. The following is a
summary of the more significant policies.

Financial Reporting Entity

The financial reporting entity consists of (a) the primary government, (b) organizations for which the primary
government is financially accountable, and (c) other organizations for which the primary government is not
accountable, but for which the nature and significance of their relationship with the primary government are
such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.
Component units are legally separate organizations for which the elected officials of the primary government
are financially accountable. Financially accountable means the primary government is accountable for the
component unit and the primary government is able to impose its will or the component unit may provide
financial benefits or impose a burden on the primary government. In addition, component units can be other
organizations for which the nature and significance of their relationship with the primary government are such
that exclusion would cause the reporting entity's financial statements to be misleading or incomplete.

The County is a primary government, which is governed by a three member county commission. As required
by accounting principles generally accepted in the United States of America, the County has evaluated the
above criteria to determine whether any other entity meets the definition of a component unit and must be
included in these financial statements. 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.

Component Units

Taney County Health Center

The Taney County Health Center, which is governed by an elected Board of Directors, provides public health
services to the residents of Taney County. The Taney County Health Center is included in the financial
statements of the County as a component unit due to its financial relationship with the County.

The Taney County Health Center issues separate financial statements. The Taney County Health Center’s
financial statements may be obtained by contacting the Center at (417) 546-4725.

24
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Taney County Regional Sewer District

The Taney County Regional Sewer District (the District) is a public utility responsible for the construction,
operation and maintenance of sanitary sewer facilities in the unincorporated portion of Taney County, Missouri.
The District is a component unit of Taney County (the County) government, and members of the District’s
Board of Trustees are appointed by the County Commission.

The Capital Improvement Sales Tax revenues are provided by a countywide sales tax of one-half of one percent.
Sales tax revenues are collected and accounted for by the County on behalf of the District. The tax revenues are
used for construction and improvement of wastewater collection and treatment and facilities benefiting the
County as a whole and repayment of long-term debt for which the tax receipts are pledged.

The Taney County Regional Sewer District issues separate financial statements that may be obtained by calling
(417) 546-7220.

Taney County Board for the Developmentally Disabled

The Developmentally Disabled Board, which is governed by a board of directors appointed by the County
Commission, provides disability services to the residents of Taney County. The Developmentally Disabled
Board is included in the financial statements of the County as a component unit due to its financial relationship
with the County.

The Taney County Board for the Developmentally Disabled issued separate financial statements that may be
obtained by calling (417) 335-4135.

Dorgan-Weaver Housing Corporation

The Dorgan-Weaver Housing Corporation, which is governed by an appointed Board of Directors, provides
housing to developmentally disabled residents of Taney County. The Dorgan-Weaver Housing Corporation is
included in the financial statements of the County as a component unit due to its financial relationship with the
Taney County Board for the Developmentally Disabled.

GOVERNMENT-WIDE FINANCIAL STATEMENTS

The government-wide statements display information about the primary government and its component units.
Interfund activity has been eliminated from these statements to minimize the duplication of internal activities.
Governmental activities, which are supported by taxes and intergovernmental receipts, are reported separately
from business-type activities, which rely on fees and charges for services for support.

25
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

In the government-wide Statement of Net Assets, both the governmental and business-type activities are
consolidated and presented on the modified cash basis of accounting.

The government-wide Statement of Activities presents a comparison between direct disbursements and program
receipts for each function of the County’s governmental and business-type activities. Direct disbursements are
those that are specifically associated with a program or a function. Program receipts include charges for goods
or services offered by the programs and grants and contributions that are restricted to meet operating and capital
disbursements of a particular program. Receipts that are not classified as program receipts, including all taxes,
are presented as general receipts.

FUND FINANCIAL STATEMENTS

Separate fund financial statements report information on the County’s governmental and proprietary funds. The
emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a
separate column. All remaining funds are aggregated and reported as nonmajor funds in their respective
categories.

The County reports the following major governmental funds:

General Fund: The General Fund is the general operating fund of the County. It is used to
account for all financial resources except those required to be accounted for in another fund.

Road and Bridge Trust Fund: The Road and Bridge Trust Fund of the County is used to account
for resources restricted for highway and road disbursements.

Road and Bridge Fund: The Road and Bridge Fund is used to account for motor vehicle and gas
tax receipts designated for highway and road improvements.

The County also reports the following fund types:

The Internal Service Fund accounts for the dental insurance benefits of the County on a cost
reimbursement basis.

Agency funds account for miscellaneous assets held by the County for other funds, governmental
units, and individuals. The agency funds are custodial in nature and do not involve measurement
of results of operations.

The County reports the following major proprietary fund:

The Transfer Station Fund accounts for the County waste collection operations.

26
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Basis of Accounting

The government-wide Statement of Net Assets and Statement of Activities and the fund financial statements for
the Primary Government of Taney County, the Developmentally Disabled Board, and the Dorgan-Weaver
Housing Corporation are presented using the modified cash basis of accounting. This basis recognizes assets,
net assets/fund equity, receipts, and disbursements when they result from cash transactions. The cash basis has
been modified to include investments of the County. This basis is a comprehensive basis of accounting other
than accounting principles generally accepted in the United States of America.

As a result of the use of this modified cash basis of accounting, certain assets and their related revenues (such as
accounts receivable and revenue for billed or provided services not yet collected) and certain liabilities and their
related expenses (such as accounts payable and expenses for goods or services received but not yet paid, and
accrued expenses and liabilities) are not recorded in these financial statements. Also, as a result of the
modified cash basis, capital assets and long-term debt of the Primary Government of Taney County and the
Developmentally Disabled Board are not presented in the financial statements.

If the County utilized the basis of accounting recognized as generally accepted, the fund financial statements for
the governmental funds would use the modified accrual basis of accounting. All government-wide financial
statements and proprietary fund financial statements would be presented on the accrual basis of accounting.

The Taney County Health Center and the Taney County Regional Sewer District’s basic financial statements
are presented on the accrual basis of accounting and conform to accounting principles generally accepted in the
United States of America.

Cash and Investments

The County pools cash and investment resources of various funds in the County Treasurer’s office in order to
facilitate the management of cash and investments. Cash applicable to a particular fund is readily identifiable.
Some County offices also hold cash and investments in their own separate bank accounts as required by state
statute. The balance in the pooled cash account is available to meet current operating requirements.
Investments of the County are carried at cost and include U.S. Government Agency obligations and certificates
of deposit.

27
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Fund Equity

The unreserved and undesignated fund balances for Governmental Fund Types represent the amount available
for budgeting future operations.

Government-Wide Statements

Equity is classified as net assets and displayed in two components:

a. 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 and regulations of other
governments; or (2) law through constitutional provisions or enabling legislations.

b. Unrestricted net assets – All other net assets that do not meet the definition of “restricted”.

It is the County’s policy to first use restricted net assets prior to the use of unrestricted net assets when a
disbursement is made for purposes for which both restricted and unrestricted net assets are available.

Compensated Absences

The County has a county-wide policy on vacation and sick leave for all employees. Leave is taken at the
discretion of each officeholder. The accumulated liability for compensated absences is not expected to be
liquidated with expendable available financial resources.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the County considers all accounts subject to withdrawal by check
or on demand to be cash and cash equivalents. All other deposits are considered to be investments.

Net Patient Service Revenue

The Taney County Health Center has agreements with third-party payors that provide for payments to the
Health Center at amounts different from its established rates. Services rendered to Medicaid program
beneficiaries are reimbursed prospectively at the Medicaid per diem rate in effect with no settlement made on
the difference between the interim per diem rates paid and actual costs.

28
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE B – CASH AND INVESTMENTS

PRIMARY GOVERNMENT

The County maintains a cash and investment pool that is available for use by all funds. Each fund type’s
portion of this pool is displayed as “Cash and investments”. In addition, investments are separately held by
several of the County’s funds. State statutes require that County deposits be fully collateralized in the name of
the County. As of December 31, 2009, all bank balances on deposit are entirely insured or collateralized with
securities.

The County’s investments at December 31, 2009, are as follows:

Investment Type Maturity Carrying Value Fair Value
Taney County
Certificates of Deposit 1/8/2010 - 12/17/2012 $ 21,812,000 $ 21,817,414
Fannie Mae US Domestic Notes 3/2/2011 1,499,250 1,504,219
FHLB 11/13/2012 - 12/17/2012 1,002,377 992,344
FHLB US Domestic Bonds 6/11/2010 2,054,724 2,035,625
FHLB Global Bonds 1/8/2010 - 11/19/2012 8,080,040 8,058,437
FHLB Callable Notes 3/17/2010 999,250 988,960
Fannie Mae Global Notes 4/26/2012 998,600 996,250
FNMA Callable Notes 4/9/2012 755,484 753,281
Freddie Mac Domestic Notes 1/26/2011 - 1/20/2012 2,000,625 2,001,296
Freddie Mac Global Notes 8/16/2010 1,047,352 1,026,615
40,249,702 40,174,441
Less: Investments held for the
Taney County Regional Sewer District (26,012,702) (26,012,702)
Total Investments Primary Government $ 14,237,000 $ 14,161,739

Certificates of Deposit

Certificates of deposit are classified as investments but are considered deposits for custodial risk determination.
State statutes require that the County’s deposits be collateralized in the name of the County by the trust
department of a bank that does not hold the collateralized deposits. As of December 31, 2009, all certificates of
deposit are entirely insured or collateralized with securities.

29
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE B – CASH AND INVESTMENTS (continued)

U.S. Government Agency Obligations

The County also holds investments in several U.S. Government agency obligations. These investments are
stated at historical cost.

The County does not have a policy on interest rate risk.

TANEY COUNTY REGIONAL SEWER DISTRICT

State statutes require that the District’s deposits be insured or collateralized in the name of the District by the
trust department of a bank that does not hold the collateralized deposits. As of December 31, 2009, all bank
balances on deposit are entirely insured or collateralized.

The District’s investments at December 31, 2009, are as follows:

Investment Type Maturity Fair Value
Certificates of Deposit 1/8/2010 - 12/17/2012 $ 7,575,000
Fannie Mae US Domestic Notes 3/2/2011 1,499,250
FHLB 11/13/2012 - 12/17/2012 1,002,377
FHLB US Domestic Bonds 6/11/2010 2,054,724
FHLB Global Bonds 1/8/2010 - 11/19/2012 8,080,040
FHLB Callable Notes 3/17/2010 999,250
Fannie Mae Global Notes 4/26/2012 998,600
FNMA Callable Notes 4/9/2012 755,484
Freddie Mac Domestic Notes 1/26/2011 - 1/20/2012 2,000,625
Freddie Mac Global Notes 8/16/2010 1,047,352
$ 26,012,702

Certificates of Deposit

Certificates of deposit are classified as investments but are considered deposits for custodial risk determination.
State statutes require that the District’s deposits be collateralized in the name of the District by the trust
department of a bank that does not hold the collateralized deposits. As of December 31, 2009, all certificates of
deposit are entirely insured or collateralized with securities. Certificates of deposit are held to maturity.

30
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE B – CASH AND INVESTMENTS (continued)

U.S. Government Agency Obligations

The District also holds investments in several U.S. Government agency obligations. These investments are
stated at historical cost.

TANEY COUNTY HEALTH CENTER

At December 31, 2009, substantially all of the Health Department’s deposits were covered by federal depository
insurance or collateralized by securities subject to joint custody safekeeping receipts issued by custodial
financial institutions.

At December 31, 2009, the Health Department had bank balances as follows:

Carrying Bank
Amounts Balance
Petty cash accounts $ 395 $ -
Checking 17,532 83,993
Money market accounts 532,657 532,657
Certificates of deposit 322,008 322,008
TOTAL $ 872,592 $ 938,658

Custodial credit risk for deposits is the risk that, in the event of bank failure, a government’s deposits may not
be returned to it. At December 31, 2009, all the Organization’s deposits were either covered by federal
depository insurance or collateralized through securities held by the Organization’s custodial bank in the
Organization’s name.

TANEY COUNTY BOARD FOR THE DEVELOPMENTALLY DISABLED

State statutes require that the Board’s deposits be insured or collateralized in the name of the Board by the trust
department of a bank that does not hold the collateralized deposits. As of December 31, 2009, all bank balances
on deposit are entirely insured or collateralized.

31
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE B – CASH AND INVESTMENTS (continued)

Investments of the Board as of December 31, 2009, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 6/2/2010 $ 244,423
Certificate of Deposit 3/9/2010 248,756
Certificate of Deposit 4/17/2010 484,933
Certificate of Deposit 11/25/2010 186,676
Certificate of Deposit 11/25/2010 186,676
$ 1,351,464

Certificates of Deposit

Certificates of deposit are classified as investments but are considered deposits for custodial risk determination.
State statutes require that the Board’s deposits be collateralized in the name of the Board by the trust department
of a bank that does not hold the collateralized deposits. As of December 31, 2009, all certificates of deposit
were insured or collateralized with securities.

Interest Rate Risk

The Board’s certificates of deposit are held to maturity to minimize interest rate risk.

Dorgan-Weaver Housing Corporation

Investments of the Corporation as of December 31, 2009, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 7/18/2010 $ 8,333

32
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE C – CLAIMS, JUDGMENTS AND CONTINGENCIES

Federal and State Grants

The County participates in a number of federal and state programs that are fully or partially funded by grants
received from other governmental units. Disbursements financed by grants are subject to audit by the
appropriate grantor government. If disbursements are disallowed due to noncompliance with grant program
regulations, the County may be required to reimburse the grantor government. As of December 31, 2009,
significant amounts of grant disbursements have not been audited by grantor governments, but the County
believes that disallowed disbursements, if any, based on subsequent audits will not have a material effect on any
of the individual government funds or the overall financial position of the County.

Legal Matters

There are a number of claims and/or lawsuits to which the County is a party as a result of certain injuries and
various other matters and complaints arising in the ordinary course of County activities. The County’s
management and legal counsel anticipate that the potential claims, if any, against the County resulting from
such litigation would not have a material effect on the financial position of the County.

NOTE D – PENSION PLAN – CERF

STATE OF MISSOURI COUNTY EMPLOYEES’ RETIREMENT FUND

Plan Description

Taney County participates in the County Employees’ Retirement Fund (CERF), a cost-sharing multiple-
employer pension plan. CERF is a defined benefit pension plan which provides retirement and death benefits to
plan members and beneficiaries. CERF was created and is governed by state statute, RSMo 50.1000 to
50.1200. As such, it is the system’s responsibility to administer the law in accordance with the expressed intent
of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401a and it is tax
exempt.

The County Employees’ Retirement Fund issues a publicly available financial report that includes financial
statements and required supplementary information. That report may be obtained by writing to CERF, Boone
County National Bank, P.O. Box 577, Columbia, MO 65202 or by calling 1-800-357-8557.

33
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE D – PENSION PLAN – CERF (continued)

Funding Policy

Taney County’s full-time employees hired before February 25, 2002, and not a member of LAGERS are
required by state statute to contribute 4% of annual payroll to the pension plan. Non-LAGERS members hired
after February 25, 2002, contribute 6% and LAGERS members hired after February 25, 2002, contribute 4%.
LAGERS members hired before February 25, 2002, do not contribute to CERF. The County is required by state
statute to remit the fees collected under RSMo Sections 52.290, 150.150, 137.280, 137.345 and Chapters 59 and
54, RSMo, plus interest. The required contributions have been made.

NOTE E – PENSION PLAN – LAGERS

Plan Description

Taney County participates in the Missouri Local Government Employees Retirement System (LAGERS), an
agent multiple-employer public employee retirement system that acts as a common investment and
administrative agent for local government entities in Missouri.

LAGERS is a defined benefit pension plan, which provides retirement, disability, and death benefits to plan
members and beneficiaries. LAGERS was created and is governed by statute, section RSMo 70.600-70.755.
As such, it is the system’s responsibility to administer the law in accordance with the expressed intent of the
General Assembly. The plan is qualified under the Internal Revenue Code Section 401a and it is tax exempt.

The Missouri Local Government Employees Retirement System issued a publicly available financial report that
includes financial statements and required supplementary information. That report may be obtained by writing
to LAGERS, P.O. Box 1665, Jefferson City, MO 65102 or by calling 1-800-447-4334.

Funding Status

Taney County’s full-time employees do not contribute to the pension plan. The political subdivision is required
to contribute at an actuarially determined rate; the current rate is 10.3% (general), and 10.8% (police) of annual
covered payroll. The contribution requirements of plan members are determined by the governing body of the
political subdivision. The contribution provisions of the political subdivision are established by state statute.

34
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE E – PENSION PLAN – LAGERS (continued)

Annual Pension Cost

For 2009, the political subdivision's annual pension cost of $1,094,632 was equal to the required and actual
contributions. The required contribution was determined as part of the February 28, 2007 and/or February 29,
2008, annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of
February 28, 2009, included (a) a rate of return on the investment of present and future assets of 7.5% per year,
compounded annually, (b) projected salary increases of 4.0% per year, compounded annually, attributable to
inflation, (c) additional projected salary increases ranging from 0.0% to 6.0% per year, depending on age and
division, attributable to seniority/merit, (d) pre-retirement mortality based on the RP-2000 Combined Healthy
Table set back 0 years for men and 0 years for women, and (e) post-retirement mortality based on the 1971
Group Annuity Mortality table for males projected to 2000 set back 1 year for men and 7 years for women. The
actuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the
market value of investments over a five-year period. The unfunded actuarial accrued liability is being
amortized as a level percentage of projected payroll on a closed basis. The amortization period at February 28,
2009 was 16 years.

Three-Year Trend Information

Fiscal Annual Percentage Net
Year Pension of APC Pension
Ending Cost (APC) Contributed Obligation
6/30/2007 $ 877,227 100% $ -
6/30/2008 966,508 100% -
6/30/2009 1,094,632 100% -

The actuarial valuation revealed the following relating to the financial position of the Plan:

(b) Unfunded [(b-a)/c]
(a) Entry Age (Excess) (c) UAL as a
Actuarial Actuarial Actuarial Accrued (a/b) Annual Percentage
Valuation Value of Accrued Liability Funded Covered of Covered
Date Assets Liability (UAL) Ratio Payroll Payroll
2/28/2009 $ 8,637,078 $ 12,210,193 $ 3,573,115 71% $ 10,162,602 35%

The required schedule of funding progress immediately 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. The projection of benefits for financial reporting
purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations.

35
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE F – ASSESSED VALUATION, TAX LEVY AND LEGAL DEBT MARGIN

Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on November 1, and
are payable by December 31.

The 2009 assessed valuation of the tangible taxable property and the tax levies per $100 assessed valuation of
that property were as follows:

ASSESSED VALUATION
Real estate $ 811,712,842
Personal property 153,570,114
Railroad and utilities 3,498,127
$ 968,781,083
TAX LEVY
General Fund $ -

The legal debt margin at December 31, 2009, is computed as follows:

Constitutional debt limit $ 96,878,108
General obligation bonds payable -
LEGAL DEBT MARGIN $ 96,878,108

(1) Under Article VI, Section 26(b) and (c), Missouri Constitution, the County, by a vote of its qualified
electors voting therein, may incur an indebtedness for any purpose authorized by law of the County
or by any general law of the State of Missouri. The borrowings authorized by this section shall not
exceed ten percent of the value of the taxable tangible property in the County.

NOTE G – LONG-TERM DEBT – TANEY COUNTY REGIONAL SEWER DISTRICT

2004 Water Pollution Control Revenue Bonds:

During 2004, the District entered into an agreement with the Missouri Leveraged State Water Pollution Control
Revolving Fund Program to sell $15,590,000 in Wastewater System Revenue Bonds, Series 2004C. The bonds
bear interest at 3.0% to 5.25%.

36
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE G – LONG-TERM DEBT – TANEY COUNTY REGIONAL SEWER DISTRICT (continued)

The interest paid is offset by an interest subsidy from the State of Missouri’s 50% bond reserves. Interest
payments are due semi-annually on January 1 and July 1 of each year with annual principal payments due
January 1 of each year. The bonds also require an administrative fee payable annually on January 1 of each
year at .714% of the outstanding principal balance. The bonds outstanding at December 31, 2009, are due as
follows:

Year Ended Administrative
December 31, Principal Interest Fee Total
2010 $ 790,000 $ 552,970 $ 89,250 $ 1,432,220
2011 800,000 528,320 83,609 1,411,929
2012 800,000 502,320 77,897 1,380,217
2013 810,000 474,945 72,185 1,357,130
2014 820,000 446,010 66,402 1,332,412
2015 840,000 410,250 60,547 1,310,797
2016 865,000 367,625 54,550 1,287,175
2017 885,000 323,875 48,374 1,257,249
2018 910,000 279,000 42,055 1,231,055
2019 940,000 231,575 35,557 1,207,132
2020 965,000 181,568 28,846 1,175,414
2021 995,000 130,119 21,956 1,147,075
2022 1,025,000 78,375 14,851 1,118,226
2023 1,055,000 26,375 7,533 1,088,908
$ 12,500,000 $ 4,533,327 $ 703,612 $ 17,736,939

The following table is a summary of the changes in the long-term debt for the year ended December 31, 2009:

Balance Balance
December 31, New December 31,
2008 Obligations Retired 2009

2004 SRF Revenue Bonds Payable $ 13,280,000 $ - $ 780,000 $ 12,500,000

37
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE H – LONG-TERM DEBT – PRIMARY GOVERNMENT

On November 15, 2006, the County issued Lease Certificates of Participation Series 2006 for the construction
of a new judicial facility. The County intends to make principal and interest payments on the lease from
revenues generated from the 1/8 cent law enforcement sales tax passed by voters on November 8, 2005. The
sales tax will continue until December 31, 2022.

The lease agreement requires principal payments ranging from $655,000 to $1,500,000 plus interest ranging
from 4.00% to 4.50%. Principal payments are due April 1 of each year with interest due semi-annually on
April 1 and October 1.

The lease agreement provides for the cancellation of the lease should the County fail to appropriate funds on the
annual renewal dates. However, the County does not foresee exercising its option to cancel.

The total annual minimum lease payments required at December 31, 2009, are as follows:

Year Ended
December 31,
2010 $ 1,421,281
2011 1,446,381
2012 1,474,181
2013 1,494,681
2014 1,520,393
2015 1,545,844
2016 1,570,881
2017 1,597,656
2018 1,626,331
2019 1,649,831
2020 1,680,131
2021 1,710,994
2022 1,737,263
2023 2,832,235
TOTAL MINIMUM LEASE PAYMENTS 23,308,083
LESS AMOUNT REPRESENTING INTEREST (5,993,083)
PRINCIPAL BALANCE, DECEMBER 31, 2009 $ 17,315,000

38
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE H – LONG-TERM DEBT – PRIMARY GOVERNMENT (continued)

The following schedule presents the changes in the long-term debt for the year ended December 31, 2009:

Balance Balance
December 31, December 31,
2008 Additions Retirements 2009
2006 Certificates of Participation $ 17,985,000 $ - $ 670,000 $ 17,315,000
Compensated absences 124,390 - 34,741 89,649
$ 18,109,390 $ - $ 704,741 $ 17,404,649

NOTE I – LONG-TERM DEBT – TANEY COUNTY HEALTH CENTER

The Health Department entered into a capital lease agreement (certificates of participation COPs) to build an
addition to the existing building. A summary of changes of loans payable for the year ended December 31,
2009, follows. The interest rate on the capital lease is 4.85% until July 1, 2013, and then adjusts to the rate
equal to (i) 65% of the sum of (a) 2.00% plus (b) the current prime rate as published in the Wall Street Journal;
plus (ii) .20%. Payments are payable monthly.

Balance Balance
December 31, December 31,
2008 Additions Retirements 2009
2008 COP's $ 833,828 $ - $ 40,451 $ 793,377
Compensated absences 75,714 29,382 - 105,096
$ 909,542 $ 29,382 $ 40,451 $ 898,473

39
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE I – LONG-TERM DEBT – TANEY COUNTY HEALTH CENTER (continued)

Debt service payments are as follows:

Year Ended
December 31, Principal Interest Total
2010 $ 42,485 $ 38,062 $ 80,547
2011 44,622 35,925 80,547
2012 46,769 33,778 80,547
2013 49,219 31,328 80,547
2014 51,694 28,853 80,547
2015 54,295 26,252 80,547
2016 56,956 23,591 80,547
2017 59,890 20,657 80,547
2018 62,902 17,645 80,547
2019 66,066 14,481 80,547
2020 69,355 11,192 80,547
2021 72,878 7,669 80,547
2022 76,544 4,003 80,547
2023 39,702 570 40,272
$ 793,377 $ 294,006 $ 1,087,383

NOTE J – LOAN – BOARD FOR THE DEVELOPMENTALLY DISABLED

During the year, the Board entered into an interest free $300,000 loan with White River Electric Cooperative,
Inc. with monthly payments of $2,500. The loan is for a pump, tank and fire suppression system.

40
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE J – LOAN – BOARD FOR THE DEVELOPMENTALLY DISABLED (continued)

The following is a schedule of payments under the loan:

Year Ended
December 31, Principal
2010 $ 30,000
2011 30,000
2012 30,000
2013 30,000
2014 30,000
2015-2018 102,500
$ 252,500

The summary of changes in the loan for the year ended December 31, 2009, is as follows:

Balance, December 31, 2008 $ 282,500
Additions -
Deletions (30,000)
Balance, December 31, 2008 $ 252,500

NOTE K – MORTGAGE PAYABLE – DORGAN-WEAVER HOUSING CORPORATION

As of December 31, 2009, the Board had a mortgage payable of $1,531,400. The mortgage payable represents
a capital advance from the U.S. Department of Housing and Urban Development for the construction of a 14-
unit residential facility. The mortgage bears no interest and repayment is not required as long as the housing
remains available for very low-income persons with disabilities.

41
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE K – MORTGAGE PAYABLE – DORGAN-WEAVER HOUSING CORPORATION (continued)

The following represents the changes in the mortgage payable during the year ended December 31, 2009:

Balance, December 31, 2008 $ 1,531,400
Additions -
Reductions -
Balance, December 31, 2009 $ 1,531,400

NOTE L – RISK MANAGEMENT

The County is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The County has transferred its risk by
obtaining coverage from commercial insurance companies. In addition, it has effectively managed risk through
various employee education and prevention programs. There has been no significant reduction in insurance
coverage from the previous year.

NOTE M – 2002 BOND PROPOSITION

On April 2, 2002, the Taney County Regional Sewer District passed a $30,000,000 bond issue for the purpose
of extending and improving the sewerage system of the District. The Capital Improvement Sales Tax passed by
voters on April 4, 2000, has been pledged for the repayment of these bonds. As of December 31, 2009, only
$15,590,000 of these bonds have been issued.

42
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE N – PROFESSIONAL LIABILITY COVERAGE AND CLAIMS – TANEY COUNTY HEALTH
CENTER

The Health Center pays fixed premiums for annual professional liability insurance coverage under an
occurrence-basis policy. Under such a policy, incidents which occur during the policy term are covered claims.
For covered claims, in general, the Health Center bears the risk of the excess, if any, over individual claim costs
of $2,000,000 with no annual aggregate limitations. The Health Center accrues the expense of asserted and
unasserted claims occurring during the year by estimating the probable ultimate cost of any such claim. Such
estimates are based on the Health Center’s own claims experience. Health Center management does not expect
any claims to exceed the professional liability coverage limits; and accordingly, no accruals for claims have
been included in these financial statements. Additionally, there were no claims filed during the year ended
December 31, 2009, and the Health Center is not aware of any unasserted claims or unreported incidents at
December 31, 2009.

NOTE O – CAPITAL ASSETS – TANEY COUNTY HEALTH CENTER

Capital asset activities for the year ended December 31, 2009, were as follows:

Balance Balance
December 31, December 31,
2008 Additions Deletions 2009
Business-Type Activities
Health Center
Nondepreciable capital assets:
Land $ 200,000 $ - $ - $ 200,000
Contruction in progress 882,612 81,537 964,149 -
Total Nondepreciable Capital Assets 1,082,612 $ 81,537 $ 964,149 200,000
Depreciable capital assets:
Buildings and improvements 1,653,984 $ 955,254 $ - 2,609,238
Equipment and furniture 624,161 56,476 1,059 679,578
2,278,145 $ 1,011,730 $ - 3,288,816
Less accumulated depreciation
Buildings and improvements 346,288 $ 66,488 $ - 412,776
Equipment and furniture 361,624 73,712 1,059 434,277
361,624 $ 73,712 $ 1,059 847,053
Total Depreciable Capital Assets, net 1,916,521 2,441,763
Total Capital Assets-Business-Type Activities, net $ 2,999,133 $ 2,641,763

43
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE P – CAPITAL ASSETS – TANEY COUNTY REGIONAL SEWER DISTRICT

Capital asset activity for the year ended December 31, 2009, was as follows:

Balance Balance
December 31, December 31,
Business-Type Activities 2008 Additions Deletions 2009
Sewer
Nondepreciable capital assets:
Land $ 106,576 $ - $ - $ 106,576
Contruction in progress 19,304,608 4,391,674 18,332,293 5,363,989
Total Nondepreciable Capital Assets 19,411,184 $ 6,587,997 $ - 5,470,565
Depreciable capital assets:
Sewer System 30,543,841 $ 20,114,920 $ - 50,658,761
Equipment 224,756 - - 224,756
30,768,597 $ 69,070 $ - 50,883,517
Less accumulated depreciation
Sewer System 5,731,151 $ 1,448,044 $ - 7,179,195
Equipment 133,598 11,940 - 145,538
5,864,749 $ 1,459,984 $ - 7,324,733
Total Depreciable Capital Assets, net 24,903,848 43,558,784
Total Capital Assets - Business-Type Activities, net $ 44,315,032 $ 49,029,349

NOTE Q – INTERFUND TRANSFERS

Interfund transfers for the year ended December 31, 2009, consisted of the following:

Transfers
In (Out)
General Fund $ 702,398
Road and Bridge Trust Fund 58,296
Road and Bridge Fund (570,103)
Assessment Fund 70,338
Tax Maintenance Fund (70,000)
E-911 Fund (241,777)
Employee Benefits Fund 71,214
Transfer Station Fund (20,366)
$ -

44
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2009

NOTE Q – INTERFUND TRANSFERS (continued)

Transfers are used to (1) move receipts from the fund that statute or budget requires to collect them to the fund
that statue or budget requires to disburse them, and (2) use unrestricted receipts in the General Fund to finance
various programs accounted for in other funds in accordance with budgetary authorizations.

NOTE R – JUDICIAL FACILITY RESERVE FUND

A Reserve Fund is established pursuant to the Indenture and is required to be funded on the date of initial
delivery of the Series 2006 Certificates in an amount equal to $1,926,000 (the “Reserve Requirement”). Money
in the Reserve Fund may be used solely (a) to make up any deficiencies in the Certificate Payment Fund and, if
the money in the Certificate Payment Fund is insufficient to pay the principal component or the interest
component of Base Rentals as the same become due, the Trustee is required to transfer from the Reserve Fund
to the Certificate Payment Fund an amount sufficient to make up such deficiency or (b) to make Base Rentals or
to make deposits to the Certificate Payment Fund to make such payments, in the amounts and at the times
specified in a written request of the County given to the Trustee. If the Trustee receives any such request, it
must transfer the amount specified therein on the date or dates specified therein. As of December 31, 2009, the
Reserve Account balance was $1,926,087.

NOTE S – COMMITMENTS

At December 31, 2009, the County was committed to the following contracts:

 LS&C for Ozark Beach Sanitary Sewer Improvements in the amount of $3,218,156.
 Tom Boyce for Coon Creek excavation in the amount of $321,663.

NOTE T – COMMITMENTS – BOARD FOR THE DEVELOPMENTALLY DISABLED

At December 31, 2009, the Board was committed to Wehr Construction in the amount of $1,000,000 for
building additions and renovations at the Tantone Development building.

45
REQUIRED SUPPLEMENTARY INFORMATION
TANEY COUNTY, MISSOURI
SCHEDULE OF FUNDING PROGRESS
Year Ended December 31, 2009

Missouri Local Government Employees Retirement System (LAGERS)

(b-a)
(b) Unfunded [(b-a)/c]
(a) Entry Age (Excess) (c) UAL as a
Actuarial Actuarial Actuarial Accrued (a/b) Annual Percentage
Valuation Value of Accrued Liability Funded Covered of Covered
Date Assets Liability (UAL) Ratio Payroll Payroll

2/28/2007 $ 7,956,827 $ 9,309,880 $ 1,353,053 85% $ 7,492,510 18%
2/29/2008 9,618,259 10,577,588 959,329 91% 8,655,618 11%
2/28/2009 8,637,078 12,210,193 3,573,115 71% 10,162,602 35%

Note: The above assets and actuarial accrued liability do not include the assets and present value
of benefits associated with the Benefit Reserve Fund and the Casualty Reserve Fund. The
actuarial assumptions were changed in conjunction with the February 28, 2006, annual actuarial
valuations. For a complete description of the actuarial assumptions used in the annual
valuations, please contact the LAGERS office in Jefferson City.

47
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND – MODIFIED CASH BASIS
Year Ended December 31, 2009

Variance
Original Final With Final
RECEIPTS Budget Budget Actual Budget
Taxes
County sales tax $ 8,505,000 $ 8,505,000 $ 8,163,855 $ (341,145)
Surtax 8,700 8,700 8,512 (188)
Payment in lieu of taxes 117,000 117,000 113,113 (3,887)
8,630,700 8,630,700 8,285,480 (345,220)
Collector's Commission
Collection commissions 507,500 507,500 608,306 100,806
Licenses and Permits
Beverage licenses 50,000 50,000 88,502 38,502
ATV permits 500 500 960 460
50,500 50,500 89,462 38,962
Intergovernmental Revenues
Federal 315,200 315,200 182,033 (133,167)
Other 253,646 253,646 252,969 (677)
568,846 568,846 435,002 (133,844)
Fees and Charges
Court 73,500 73,500 83,544 10,044
Public administration 85,000 85,000 59,220 (25,780)
County clerk 1,000 1,000 802 (198)
Recorder of deeds 1,000,000 1,000,000 989,864 (10,136)
Tax sale publication 8,000 8,000 8,480 480
Planning and zoning 80,000 80,000 75,307 (4,693)
Sheriff fees 930,000 930,000 758,536 (171,464)
Phone and vending 1,500 1,500 641 (859)
Election reimbursement - - 294 294
Computer room 4,000 4,000 1,308 (2,692)
Airport 1,435,000 1,435,000 613,823 (821,177)
3,618,000 3,618,000 2,591,819 (1,026,181)
Other
Interest income 250,000 250,000 312,366 62,366
Miscellaneous 41,850 41,850 76,051 34,201
Sale of property 15,000 15,000 22,159 7,159
306,850 306,850 410,576 103,726
TOTAL RECEIPTS 13,682,396 13,682,396 12,420,645 (1,261,751)
DISBURSEMENTS
Current
General Government
University extension 47,642 47,642 47,386 256
Collector of revenue 230,881 230,881 227,036 3,845
Treasurer 86,930 86,930 85,504 1,426
Recorder of deeds 334,458 334,458 274,251 60,207
County commission 345,240 345,240 327,236 18,004
Employee fringe benefits 2,080,070 2,080,070 2,120,643 (40,573)
Information technology 446,795 446,795 417,941 28,854
Planning and zoning 268,783 268,783 323,258 (54,475)
Election and voter registration 50,300 50,300 14,798 35,502
County clerk 185,384 185,384 188,036 (2,652)
Auditor 178,459 178,459 176,169 2,290
Building and grounds 859,057 859,057 975,459 (116,402)
5,113,999 5,113,999 5,177,717 (63,718)

48
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND – MODIFIED CASH BASIS (CONTINUED)
Year Ended December 31, 2009

Variance
Original Final With Final
Budget Budget Actual Budget
Judicial
Court administration - - 37,506 (37,506)
Associate circuit #2 - - 400 (400)
Circuit judge 65,548 65,548 56,064 9,484
Circuit clerk 113,308 113,308 98,862 14,446
Coroner 48,342 48,342 45,880 2,462
Court reporter 2,112 2,112 834 1,278
Child support - - 733 (733)
Public administrator 97,754 97,754 100,280 (2,526)
Juvenile 129,174 129,174 119,485 9,689
Prosecuting attorney 620,540 620,540 653,462 (32,922)
1,076,778 1,076,778 1,113,506 (36,728)
Public Safety
Sheriff 2,484,050 2,484,050 2,386,768 97,282
Jail 1,502,985 1,502,985 1,295,842 207,143
Animal control 144,482 144,482 152,821 (8,339)
Emergency management 186,195 186,195 73,309 112,886
4,317,712 4,317,712 3,908,740 408,972
Other 13,742,456 13,742,456 3,004,420 10,738,036
Public Works
Sewer 334,982 334,982 167,246 167,736
Industrial Development Board 54,600 54,600 100,368 (45,768)
389,582 389,582 267,614 121,968
Airport
Airport 1,630,707 1,630,707 1,144,093 486,614
Debt Service
Principal and interest 1,400,000 1,400,000 1,301,145 98,855
TOTAL DISBURSEMENTS 27,671,234 27,671,234 15,917,235 11,753,999
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (13,988,838) (13,988,838) (3,496,590) 10,492,248
OTHER FINANCING
SOURCES (USES)
Operating transfers (out) (186,575) (186,575) (198,317) (11,742)
Operating transfers in 1,124,331 1,124,331 900,715 (223,616)
TOTAL OTHER FINANCING
SOURCES (USES) 937,756 937,756 702,398 (235,358)
(DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (13,051,082) (13,051,082) (2,794,192) 10,256,890
FUND BALANCE, January 1 13,051,082 13,051,082 13,051,082 -
FUND BALANCE, December 31 $ - $ - $ 10,256,890 $ 10,256,890

49
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – ROAD AND BRIDGE TRUST FUND – MODIFIED CASH
BASIS
Year Ended December 31, 2009

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 6,800,000 $ 6,800,000 $ 6,523,261 $ (276,739)
Intergovernmental receipts 1,100,000 1,100,000 1,375,746 275,746
Other receipts 145,000 145,000 135,545 (9,455)
TOTAL RECEIPTS 8,045,000 8,045,000 8,034,552 (10,448)
DISBURSEMENTS
Highway and Roads
Wages and benefits 564,169 564,169 1,034,388 (470,219)
Computer related disbursements 17,000 17,000 6,345 10,655
Mileage and training 4,900 4,900 2,429 2,471
Professional services 132,700 132,700 76,407 56,293
Rental equipment 80,000 80,000 40,395 39,605
Telephone and utilities 55,500 55,500 50,901 4,599
Insurance 140,000 140,000 167,474 (27,474)
Repair and maintenance 414,000 414,000 395,280 18,720
Equipment 544,000 544,000 248,063 295,937
Road construction 600,000 600,000 636,468 (36,468)
Road supplies 4,031,000 4,031,000 2,771,413 1,259,587
Bridges 2,500,000 2,500,000 116,139 2,383,861
Other supplies 612,500 612,500 450,264 162,236
Trail construction - - 50,000 (50,000)
Other 1,884,672 1,884,672 481,349 1,403,323
TOTAL DISBURSEMENTS 11,580,441 11,580,441 6,527,315 5,053,126
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (3,535,441) (3,535,441) 1,507,237 5,042,678
OTHER FINANCING SOURCES (USES)
Operating transfers in - - 76,253 76,253
Operating transfers (out) (13,475) (13,475) (17,957) (4,482)
TOTAL OTHER FINANCING
SOURCES (USES) (13,475) (13,475) 58,296 71,771
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (3,548,916) (3,548,916) 1,565,533 5,114,449
FUND BALANCE, January 1 3,548,916 3,548,916 3,424,682 (124,234)
FUND BALANCE, December 31 $ - $ - $ 4,990,215 $ 4,990,215

50
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – ROAD AND BRIDGE FUND – MODIFIED CASH BASIS
Year Ended December 31, 2009

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 952,000 $ 952,000 $ 1,086,258 $ 134,258
Other receipts 270,000 270,000 120,159 (149,841)
TOTAL RECEIPTS 1,222,000 1,222,000 1,206,417 (15,583)

DISBURSEMENTS
Highway and Roads 3,027,324 3,027,324 2,685,504 341,820
TOTAL DISBURSEMENTS 3,027,324 3,027,324 2,685,504 341,820
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (1,805,324) (1,805,324) (1,479,087) 326,237
OTHER FINANCING (USES)
Operating transfers (out) (570,103) (570,103) (570,103) -
TOTAL OTHER
FINANCING (USES) (570,103) (570,103) (570,103) -
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS
AND OTHER (USES) (2,375,427) (2,375,427) (2,049,190) 326,237
FUND BALANCE, January 1 2,375,427 2,375,427 2,375,427 -
FUND BALANCE, December 31 $ - $ - $ 326,237 $ 326,237

51
OTHER FINANCIAL INFORMATION
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES – NON-MAJOR SPECIAL REVENUE FUNDS – MODIFIED CASH BASIS
December 31, 2009

Prosecuting
Law Prosecuting Attorney Sheriff Prosecuting
Enforcement Attorney Tax Delinquent Civil Vest Attorney
Assessment Training Training E-911 Maintenance Tax Fees Grant Bad Check
Fund Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 23,917 $ 7,135 $ 5,934 $ 770,624 $ 148,507 $ 66,881 $ 156,414 $ 2,759 $ 279,970
TOTAL ASSETS $ 23,917 $ 7,135 $ 5,934 $ 770,624 $ 148,507 $ 66,881 $ 156,414 $ 2,759 $ 279,970
FUND BALANCES
Fund Balance
Unreserved $ 23,917 $ 7,135 $ 5,934 $ 770,624 $ 148,507 $ 66,881 $ 156,414 $ 2,759 $ 279,970
TOTAL FUND BALANCES $ 23,917 $ 7,135 $ 5,934 $ 770,624 $ 148,507 $ 66,881 $ 156,414 $ 2,759 $ 279,970

53
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES – NON-MAJOR SPECIAL REVENUE FUNDS – MODIFIED CASH BASIS
(CONTINUED)
December 31, 2009

Local
Sheriff Emergency
Drug Planning Election Recorder Law Domestic Sheriff
Forfeiture Commission Services User Fee Library Violence Revolving
Fund Fund Fund Fund Fund Fund Fund Total
ASSETS
Cash and investments $ 30,278 $ 11,531 $ 19,768 $ 381,110 $ 36,819 $ 9,177 $ 33,788 $ 1,984,612
TOTAL ASSETS $ 30,278 $ 11,531 $ 19,768 $ 381,110 $ 36,819 $ 9,177 $ 33,788 $ 1,984,612
FUND BALANCES
Fund Balance
Unreserved $ 30,278 $ 11,531 $ 19,768 $ 381,110 $ 36,819 $ 9,177 $ 33,788 $ 1,984,612
TOTAL FUND BALANCES $ 30,278 $ 11,531 $ 19,768 $ 381,110 $ 36,819 $ 9,177 $ 33,788 $ 1,984,612

54
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN FUND BALANCE – NON-MAJOR SPECIAL REVENUE
FUNDS – MODIFIED CASH BASIS
Year Ended December 31, 2009

Prosecuting
Law Prosecuting Attorney Sheriff Prosecuting
Enforcement Attorney Tax Delinquent Civil Vest Attorney
Assessment Training Training E-911 Maintenance Tax Fees Grant Bad Check
Fund Fund Fund Fund Fund Fund Fund Fund Fund
RECEIPTS
Taxes $ - $ - $ - $ 507,994 $ - $ - $ - $ - $ -
Intergovernmental receipts - - - - - - 9,252 4,675 -
Fees and charges 581,022 - 1,542 852 116,076 10,778 63,682 - 49,428
Other receipts 2,495 8,649 165 25,763 3,323 1,707 4,470 62 7,735
TOTAL RECEIPTS 583,517 8,649 1,707 534,609 119,399 12,485 77,404 4,737 57,163
DISBURSEMENTS
Current
General government 637,608 - - - 18,091 - - - -
Judicial - - 1,741 - - - - - 39,185
Public safety - 4,569 - 454,231 - - 53,938 4,093 -
TOTAL DISBURSEMENTS 637,608 4,569 1,741 454,231 18,091 - 53,938 4,093 39,185
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (54,091) 4,080 (34) 80,378 101,308 12,485 23,466 644 17,978
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) 70,338 - - (241,777) (70,000) - - - -
TOTAL OTHER FINANCING
SOURCES (USES) 70,338 - - (241,777) (70,000) - - - -
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) 16,247 4,080 (34) (161,399) 31,308 12,485 23,466 644 17,978
FUND BALANCE, January 1 7,670 3,055 5,968 932,023 117,199 54,396 132,948 2,115 261,992
FUND BALANCE, December 31 $ 23,917 $ 7,135 $ 5,934 $ 770,624 $ 148,507 $ 66,881 $ 156,414 $ 2,759 $ 279,970

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TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN FUND BALANCE – NONMAJOR SPECIAL REVENUE
FUNDS – MODIFIED CASH BASIS (CONTINUED)
Year Ended December 31, 2009

Local
Sheriff Emergency
Drug Planning Election Recorder Law Domestic Sheriff
Forfeiture Commission Services User Fee Library Violence Revolving
Fund Fund Fund Fund Fund Fund Fund Total
RECEIPTS
Taxes $ - $ - $ - $ - $ - $ - $ - $ 507,994
Intergovernmental receipts 25,196 5,212 - - - - - 44,335
Fees and charges - - 2,093 216,729 15,298 8,142 18,392 1,084,034
Other receipts 238 281 7,291 12,348 422 146 708 75,803
TOTAL RECEIPTS 25,434 5,493 9,384 229,077 15,720 8,288 19,100 1,712,166
DISBURSEMENTS
Current
General government - - 2,204 254,415 - 8,003 - 920,321
Judicial - - - - 8,730 - - 49,656
Public safety - 1,959 - - - - 3,600 522,390
TOTAL DISBURSEMENTS - 1,959 2,204 254,415 8,730 8,003 3,600 1,492,367
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS 25,434 3,534 7,180 (25,338) 6,990 285 15,500 219,799
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) - - - - - - - (241,439)
TOTAL OTHER FINANCING
SOURCES (USES) - - - - - - - (241,439)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) 25,434 3,534 7,180 (25,338) 6,990 285 15,500 (21,640)
FUND BALANCE, January 1 4,844 7,997 12,588 406,448 29,829 8,892 18,288 2,006,252
FUND BALANCE, December 31 $ 30,278 $ 11,531 $ 19,768 $ 381,110 $ 36,819 $ 9,177 $ 33,788 $ 1,984,612

56
 INDEPENDENT AUDITORS' REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Taney County Commission
Taney County
Forsyth, Missouri

We have audited the accompanying financial statements of the governmental activities, business-type activities,
the aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of Taney County, Missouri as of and for the year ended December 31, 2009, which collectively
comprise Taney County, Missouri’s basic financial statements and have issued our report thereon dated July 15,
2010. In our report, our opinion was modified because the Primary Government of the County, the Taney
County Board for the Developmentally Disabled, and the Taney County Health Center prepares its financial
statements on the modified cash basis, which is a comprehensive basis of accounting other than accounting
principles generally accepted in the United States of America. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Taney County, Missouri's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County’s
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
County’s internal control over financial reporting.

Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting
that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all
deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the
accompanying schedule of findings and responses, we identified a certain deficiency in internal control over
financial reporting that we consider to be a material weakness.

57
Taney County Commission
Taney County
Forsyth, Missouri

A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial
statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency
described in the accompanying schedule of findings and questioned costs to be a material weakness. It is
identified as item 09-1.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Taney County, Missouri'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 no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.

The 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 the County’s response and, accordingly, we express no opinion
on it.

We noted certain other matters that we have reported to management of Taney County, Missouri in a separate
letter dated July 15, 2010.

This report is intended solely for the information and use of the County Commission, management, and 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.

DAVIS, LYNN & MOOTS, P.C.
July 15, 2010

58
 INDEPENDENT AUDITORS' REPORT ON
COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

Taney County Commission
Taney County
Forsyth, Missouri

We have audited the compliance of Taney County, Missouri with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that
are applicable to its major federal program for the year ended December 31, 2009. Taney County, Missouri's
major federal program is 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 its major federal program is the responsibility of Taney County, Missouri's management. Our
responsibility is to express an opinion on Taney County, Missouri'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 basis, evidence about Taney County, Missouri'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 on Taney County, Missouri's compliance with those requirements.

59
Taney County Commission
Taney County
Forsyth, Missouri

In our opinion, Taney County, Missouri complied, in all material respects, with the requirements referred to
above that are applicable to its major federal program for the year ended December 31, 2009.

Internal Control Over Compliance

The management of Taney County, Missouri is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts and grants applicable to federal
programs. In planning and performing our audit, we considered Taney County, Missouri's internal control over
compliance with requirements that could have a direct and material effect on a major federal program in order
to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the
purpose of expressing an opinion on the effectiveness of the County’s internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the County's internal control over
compliance.

A control deficiency in an entity’s internal control over compliance 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 noncompliance with a type of compliance requirement of a federal program on a timely
basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely
affects the entity’s ability to administer a federal program such that there is more than a remote likelihood that
noncompliance with a type of compliance requirement of a federal program that is more than inconsequential
will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more
than a remote likelihood that material noncompliance with a type of compliance requirement of a federal
program will not be prevented or detected by the entity’s internal control.

Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify deficiencies in internal control that might be
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.

This report is intended solely for the information and use of the County Commission, management and 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.

DAVIS, LYNN & MOOTS, P.C.
July 15, 2010

60
TANEY COUNTY, MISSOURI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2009

Federal Grantor Federal
Pass Through Grantor/ CFDA Pass-through Federal
Program Title Number Grantor's Number Expenditures
U.S. DEPARTMENT OF HOMELAND SECURITY
State of Missouri Emergency Management Agency
Law Enforcement Terrorism Prevention Grant 97.067 SHSP-TEAMHRST $ 26,552
HMEP 1,000
Public Assistance Grant 97.036 FEMA-1809-DR-MO 33,163
FEMA-1822-DR-MO 509,287
FEMA-1749-DR-MO 46,678
Emergency Management Performance Grant 97.042 N/A 11,122
TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY 627,802
U.S. DEPARTMENT OF TRANSPORTATION
Missouri Department of Transportation
State and Community Highway Safety 20.600 STP 9900 17,627
TOTAL U.S. DEPARTMENT OF TRANSPORTATION 17,627
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Missouri Department of Social Services
Emergency Shelter Grant 14.231 ERO 1640965 10,956
Recover Act - Homeless Prevention and Rapid
Rehousing Grant 14.257 ER 16410047A 45,500
TOTAL U.S. DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT 56,456
U.S. DEPARTMENT OF AGRICULTURE
State of Missouri Treasurer's Office
School and Roads Grants to States 10.665 N/A 103,867
TOTAL U.S. DEPARTMENT OF AGRICULTURE 103,867
U.S. DEPARTMENT OF JUSTICE
Direct
Bullet Proof Vest Partnership Grant 16.607 N/A 4,675
Missouri Internet Crimes Against Children Task Force
Recovery Act - Internet Crimes Against Children 16.800 N/A 11,351
Missouri Department of Public Safety
Recovery Act - Edward Byrnes Memorial Assistance Grant 16.803 N/A 20,006
TOTAL U.S. DEPARTMENT OF JUSTICE 36,032
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 841,784

N/A - Not Applicable

61
TANEY COUNTY, MISSOURI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
Year Ended December 31, 2009

NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

The Schedule of Expenditures and Federal Awards is presented using the modified cash basis of accounting,
which is described in Note A to the County’s financial statements.

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TANEY COUNTY, MISSOURI
SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2009

A. SUMMARY OF AUDIT RESULTS

1. The independent auditors' report expresses an unqualified opinion on the basic financial
statements.

2. A significant deficiency disclosed during the audit of the financial statements is reported in the
Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards. This deficiency is reported as a material weakness.

3. No instances of noncompliance material to the financial statements were disclosed during the
audit.

4. No significant deficiencies were disclosed during the audit of the major federal award program.

5. The auditors' report on compliance for the major federal award program expresses an unqualified
opinion.

6. There were no findings required to be reported in accordance with Section 510(a) of OMB
Circular A-133.

7. The program tested as a major program was:

Public Assistance Grant 97.036

8. The threshold for determining Type A programs was $300,000.

9. Taney County, Missouri was not determined to be a low-risk auditee.

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

SIGNIFICANT DEFICIENCY

09-1 Segregation of duties

Condition: Because of a limited number of available personnel, it is not always possible
to adequately segregate certain incompatible duties so that no one employee has access to
both physical assets and the related accounting records, or to all phases of a transaction.
The County currently has one full time bookkeeper to handle the accounting needs of the
County. There are some mitigating controls in place but it is not possible to have
segregation in all areas.

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TANEY COUNTY, MISSOURI
SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
Year Ended December 31, 2009

B. FINDINGS - FINANCIAL STATEMENTS AUDIT (continued)

Criteria: Duties should be segregated so that no one employee has access to both
physical assets and the related accounting records, or to all phases of a transaction.

Effect: Risk is present that errors or irregularities in amounts that would be material to
the basic financial statements may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.

Recommendation: We realize that because of limited resources and personnel,
management may not be able to achieve a proper segregation of duties; however, our
professional standards require that we bring this lack of segregation of duties to your
attention in this report.

Response: The limited number of available personnel prohibits segregation of
incompatible duties and the County does not have the resources to hire additional
accounting personnel.

C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT

There were no findings or questioned costs for the major federal award programs.

64
TANEY COUNTY, MISSOURI
SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended December 31, 2009

There were no prior audit findings.

65