2010 Audit Report

TANEY COUNTY, MISSOURI

BASIC FINANCIAL STATEMENTS

Year Ended December 31, 2010
 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 ........................................................................................................................ 50

Budgetary Comparison Schedule – General Fund – Modified Cash Basis .................................................... 51

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 TABLE OF CONTENTS

REQUIRED SUPPLEMENTARY INFORMATION continued)

Budgetary Comparison Schedule – Road and Bridge Trust Fund –
Modified Cash Basis ................................................................................................................................. 53

Budgetary Comparison Schedule – Road and Bridge Fund –
Modified Cash Basis ................................................................................................................................. 54

OTHER FINANCIAL INFORMATION

Combining Statement of Assets and Fund Balances – Non-Major
Special Revenue Funds – Modified Cash Basis ....................................................................................... 56

Combining Statement of Receipts, Disbursements, and Changes in Fund
Balance – Non-Major Special Revenue Funds – Modified Cash Basis.................................................... 58

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 .......................................... 60

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 ........................................................................... 62

Schedule of Expenditures of Federal Awards ................................................................................................. 64

Summary Schedule of Findings and Questioned Costs .................................................................................. 66

Schedule of Prior Audit Findings ................................................................................................................... 68

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 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, 2010, 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, 2010, 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, 2010, 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 May 27, 2011, 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.
May 27, 2011

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MANAGEMENT’S DISCUSSION AND ANALYSIS
 TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2010

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, 2010, 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 $152,777.
 The fund balance for the General Fund decreased by $579,911. Using the modified cash basis
does not take into consideration capital improvements.
 The fund balance for the Road and Bridge Trust Fund decreased by $11,694.
 The Road and Bridge Fund increased $646,095.
 The General Fund paid expense for remodel, landscape, and finish work on capital
improvements that total $204,294.
 The Road and Bridge management was in maintenance mode. If trends continue, it can be
expected that newly accepted county roads would be placed on a list for maintenance, but not
targeted for improvements until more monies are available.

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, 2010

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, 2010

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,
2010 2009
ASSETS
Cash and investments $ 18,103,991 $ 18,256,768
TOTAL ASSETS $ 18,103,991 $ 18,256,768
NET ASSETS
Unrestricted $ 18,103,991 $ 18,256,768
TOTAL NET ASSETS $ 18,103,991 $ 18,256,768

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2010

Changes in Net Assets – Modified Cash Basis

Year Ended December 31,
2010 2009
RECEIPTS
Program Receipts
Charges for services $ 5,113,058 $ 5,591,476
Operating grants and contributions 680,899 1,417,739
Capital grants and contributions 475,459 105,226
General Receipts
Sales tax receipts 14,790,747 14,687,116
Motor vehicle sales tax 280,561 244,308
Gas tax 925,825 834,465
Telephone tax 530,691 507,994
Other taxes 132,087 129,110
Interest 321,448 458,445
Other receipts 194,831 303,854
TOTAL RECEIPTS 23,445,606 24,279,733
DISBURSEMENTS
General government 5,818,750 6,124,622
Judicial 1,237,446 1,163,162
Public safety 4,340,386 4,450,447
Public works 249,411 267,614
Highway and roads 6,849,445 9,252,981
Airport 697,911 1,144,093
Debt service 1,421,864 1,301,145
Other 1,988,972 3,004,420
Transfer station 994,198 954,472
TOTAL DISBURSEMENTS 23,598,383 27,662,956
(DECREASE) IN NET ASSETS $ (152,777) $ (3,383,223)

Overall receipts of the County decreased by $834,127 from the prior year. Tax revenues were down $478,418,
which represents an 8.5% decrease from the prior year. Overall disbursements of the County were down
$4,064,573.

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2010

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 $579,911 for the year ended December 31, 2010.
 The Road and Bridge Fund balance increased by $646,095 for the year ended December 31,
2010.
 The Road and Bridge Trust Fund decreased by $11,694, which decreased the fund balance to
$4,978,521 as of December 31, 2010.
 The General Fund expended $204,294 for capital improvements and had lower revenues than the
previous year.
 Major changes in management focus have allowed the combined funds for Road and Bridge to
increase. When focus moves back to more improvements, we will see more expenses.

FINANCIAL ANALYSIS BUDGET VERSUS ACTUAL RESULTS – GENERAL FUND

Budget
Original Final Actual
RECEIPTS
Taxes $ 8,252,100 $ 8,252,100 $ 8,360,096
Commissions 530,000 530,000 714,592
Licenses and permits 60,500 60,500 63,802
Intergovernmental receipts 444,937 444,937 856,389
Fees and charges 2,945,922 2,945,922 2,422,994
Other 290,600 290,600 453,806
TOTAL RECEIPTS $ 12,524,059 $ 12,524,059 $ 12,871,679
DISBURSEMENTS
General government $ 5,245,437 $ 5,245,437 $ 4,982,954
Judicial 1,142,384 1,142,384 1,191,413
Public safety 4,231,805 4,231,805 3,822,627
Public works 473,441 473,441 249,411
Other 10,038,175 10,038,175 1,988,972
Airport 1,276,625 1,276,625 697,911
Debt service 1,421,282 1,421,282 1,421,864
TOTAL DISBURSEMENTS $ 23,829,149 $ 23,829,149 $ 14,355,152

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2010

Management was of the opinion that we would not have as much revenue and slightly underestimated the
revenues for 2010. It was expected that we might spend more. Thanks to the efforts of employees and elected
officials we did not. The airport did have a major project that was moved into the next year. In the “other”
category, we have budgeted for capital improvements that were expected to allow a good balance forward into
2011.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

Next year will be another challenging budget cycle. The County is like many others, not confident about what
our economy will do. Management recognizes that we have much more control over what we spend than what
we bring in as revenue. Therefore, the challenge will be decreasing those expenses without decreasing the
quality of service provided to the constituents.

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, 2010

Primary Government Component Units
Develop- Dorgan-
Business- mentally Weaver
Governmental Type Disabled Housing
Activities Activities Total Board Corporation
ASSETS
Cash and investments $ 17,544,582 $ 559,409 $ 18,103,991 $ 2,015,406 $ 47,177
TOTAL ASSETS $ 17,544,582 $ 559,409 $ 18,103,991 $ 2,015,406 $ 47,177
NET ASSETS
Restricted $ - $ - $ - $ 222,500 $ 41,369
Unrestricted 17,544,582 559,409 18,103,991 1,792,906 5,808
TOTAL NET ASSETS $ 17,544,582 $ 559,409 $ 18,103,991 $ 2,015,406 $ 47,177

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF NET ASSETS – TANEY COUNTY REGIONAL SEWER DISTRICT AND HEALTH
CENTER
December 31, 2010

Component Units
Taney Taney
County County
Regional Health
Sewer District Center
ASSETS
Cash and investments - unrestricted $ 25,300,714 $ 954,395
Ad valorem taxes receivable, net - 990,746
Accounts receivable 102,222 85,163
Prepaid expenses - 65,202
Restricted cash and investments 1,600,117 -
Deferred Bond Issuance Costs 187,602 8,638
Capital Assets:
Non-depreciable 1,672,058 200,000
Depreciable, net 50,915,070 2,328,419
TOTAL ASSETS 79,777,783 4,632,563
LIABILITIES
Current
Accounts payable 360,608 38,075
Accrued expenses 76,610 86,388
Deposits payable 109,379 -
Accrued interest payable 270,560 -
Current maturities of long-term debt 800,000 44,622
TOTAL CURRENT LIABILITIES 1,617,157 169,085
Noncurrent
Arbitrage payable 61,676 -
Certificates of participation debt - 706,270
Compensated absences - 108,181
Revenue bonds payable 10,910,000 -
TOTAL NONCURRENT LIABILITIES 10,971,676 814,451
TOTAL LIABILITIES 12,588,833 983,536
NET ASSETS
Invested in capital assets, net of related debt 40,877,128 1,777,527
Restricted for debt service 1,429,062 -
Unrestricted 24,882,760 1,871,500
TOTAL NET ASSETS $ 67,188,950 $ 3,649,027

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES – MODIFIED CASH BASIS
Year Ended December 31, 2010
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 $ (5,818,750) $ 2,760,688 $ - $ - $ (3,058,062) $ - $ (3,058,062)
Judicial (1,237,446) 204,455 - - (1,032,991) - (1,032,991)
Public safety (4,340,386) 670,081 171,204 - (3,499,101) - (3,499,101)
Public works (249,411) 91,473 - - (157,938) - (157,938)
Highway and roads (6,849,445) 250 57,767 70,998 (6,720,430) - (6,720,430)
Airport (697,911) 529,210 - - (168,701) - (168,701)
Debt service (1,421,864) - - - (1,421,864) - (1,421,864)
Other (1,988,972) - 451,928 404,461 (1,132,583) - (1,132,583)
TOTAL GOVERNMENTAL
ACTIVITIES (22,604,185) 4,256,157 680,899 475,459 (17,191,670) - (17,191,670)
Business-Type Activities
Transfer station (994,198) 856,901 - - - (137,297) (137,297)
TOTAL BUSINESS-TYPE
ACTIVITIES (994,198) 856,901 - - - (137,297) (137,297)
TOTAL PRIMARY GOVERNMENT $ (23,598,383) $ 5,113,058 $ 680,899 $ 475,459 (17,191,670) (137,297) (17,328,967)
Component Units
Developmentally Disabled Board $ (2,118,385) $ 31,410 $ - $ 48,311 $ (2,038,664) $ -
Dorgan-Weaver Housing Corp. (66,355) 67,582 - - - 1,227
TOTAL COMPONENT UNITS $ (2,184,740) $ 98,992 $ - $ 48,311 (2,038,664) 1,227
General Receipts and Transfers:
Ad valorem taxes - - - 889,767 -
Sales taxes 14,790,747 - 14,790,747 - -
Motor vehicle sales taxes 280,561 - 280,561 - -
Gas taxes 925,825 - 925,825 - -
Telephone taxes 530,691 - 530,691 - -
Other taxes 132,087 - 132,087 - -
Interest 310,000 11,448 321,448 25,270 308
Other receipts 181,319 13,512 194,831 4,130 1,727
Transfers 23,367 (23,367) - - -
Special Items:
Lease proceeds - - - 1,089,213 -
Loan proceeds - - - 349,500 -
Total General Receipts, Transfers and Special Items 17,174,597 1,593 17,176,190 2,357,880 2,035
Increase (Decrease) in Net Assets (17,073) (135,704) (152,777) 319,216 3,262
Net Assets, Beginning of year 17,561,655 695,113 18,256,768 1,696,190 43,915
Net Assets, End of year $ 17,544,582 $ 559,409 $ 18,103,991 $ 2,015,406 $ 47,177

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, 2010

Component Units
Net (Expenditures), Receipts,
Program Revenues and Changes in Net Assets
Charges Operating Capital Taney County
for Grants and Grants and Regional Taney County
Functions/Programs Expenditures Services Contributions Contributions Sewer District Health Center
Component Units
Taney County Regional
Sewer District $ (5,958,158) $ 1,382,538 $ - $ - $ (4,575,620) $ -
Taney County Health Center (3,628,045) 2,169,764 - - - (1,458,281)
TOTAL COMPONENT UNITS $ (9,586,203) $ 3,552,302 $ - $ - (4,575,620) (1,458,281)

General Revenues
Ad valorem taxes - 1,369,643
Sales tax 6,557,953 -
Interest 458,134 16,309
Other receipts 29,970 -
Total General Revenues 7,046,057 1,385,952
Increase (Decrease) in Net Assets 2,470,437 (72,329)
Net Assets, Beginning of year 64,718,513 3,721,356
Net Assets, End of year $ 67,188,950 $ 3,649,027

See accompanying notes.
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TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND FUND BALANCES – GOVERNMENTAL FUNDS – MODIFIED CASH
BASIS
December 31, 2010

Road and Road and Nonmajor Total
General Bridge Bridge Governmental Governmental
Fund Trust Fund Fund Funds Funds
ASSETS
Cash and investments $ 9,676,979 $ 4,978,521 $ 972,332 $ 1,915,451 $ 17,543,283
TOTAL ASSETS $ 9,676,979 $ 4,978,521 $ 972,332 $ 1,915,451 $ 17,543,283
FUND BALANCES
Fund Balances
Unreserved, reported in:
General Fund $ 9,676,979 $ - $ - $ - $ 9,676,979
Special Revenue Funds - 4,978,521 972,332 1,915,451 7,866,304
TOTAL FUND BALANCES $ 9,676,979 $ 4,978,521 $ 972,332 $ 1,915,451 $ 17,543,283

Fund Balance Governmental Funds $ 17,543,283
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. 1,299
Net Assets of Governmental Activities $ 17,544,582

See accompanying notes.
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TANEY COUNTY, MISSOURI
STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN FUND BALANCES –
GOVERNMENTAL FUNDS – MODIFIED CASH BASIS
Year Ended December 31, 2010

Road and Road and Nonmajor Total
General Bridge Bridge Governmental Governmental
Fund Trust Fund Fund Funds Funds
RECEIPTS
Taxes $ 8,360,096 $ 6,562,738 $ 1,206,386 $ 530,691 $ 16,659,911
Collector's commission 714,592 - - - 714,592
Licenses and permits 63,802 - - - 63,802
Intergovernmental receipts 856,389 73,245 - 51,642 981,276
Fees and charges 2,422,994 - - 1,063,943 3,486,937
Other 453,806 141,098 91,757 42,368 729,029
TOTAL RECEIPTS 12,871,679 6,777,081 1,298,143 1,688,644 22,635,547
DISBURSEMENTS
Current
General government 4,982,954 - - 835,796 5,818,750
Judicial 1,191,413 - - 46,033 1,237,446
Public safety 3,822,627 - - 517,759 4,340,386
Public works 249,411 - - - 249,411
Airport 697,911 - - - 697,911
Other 1,988,972 - - - 1,988,972
Highway and roads - 4,772,477 2,076,968 - 6,849,445
Debt service 1,421,864 - - - 1,421,864
TOTAL DISBURSEMENTS 14,355,152 4,772,477 2,076,968 1,399,588 22,604,185
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (1,483,473) 2,004,604 (778,825) 289,056 31,362
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) 903,562 (2,016,298) 1,424,920 (358,217) (46,033)
TOTAL OTHER FINANCING
SOURCES (USES) 903,562 (2,016,298) 1,424,920 (358,217) (46,033)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (579,911) (11,694) 646,095 (69,161) (14,671)
FUND BALANCE, January 1 10,256,890 4,990,215 326,237 1,984,612 17,557,954
FUND BALANCE, December 31 $ 9,676,979 $ 4,978,521 $ 972,332 $ 1,915,451 $ 17,543,283

(Deficit) of Receipts and Other Sources
Over Disbursements and Other Uses $ (14,671)
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. (2,402)
(Decrease) in Net Assets $ (17,073)

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF NET ASSETS – PROPRIETARY FUNDS – MODIFIED CASH BASIS
December 31, 2010

Internal
Enterprise Service
Fund Fund
Transfer Employee
Station Fund Benefits Fund
ASSETS
Current Assets
Cash and cash equivalents $ 559,409 $ 1,299
TOTAL ASSETS $ 559,409 $ 1,299
Net Assets
Unrestricted $ 559,409 $ 1,299
TOTAL NET ASSETS $ 559,409 $ 1,299

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, 2010

Internal
Enterprise Service
Fund Fund
Transfer Employee
Station Fund Benefits Fund
OPERATING RECIEPTS
Charges for services $ 856,901 $ -
TOTAL OPERATING RECEIPTS 856,901 -
OPERATING DISBURSEMENTS
Insurance claims and disbursements 371 73,798
Salaries and employee benefits 211,665 -
Supplies 58,182 -
Telephone and utilities 3,306 -
Repair and maintenance 61,375 -
Landfill services 653,674 -
Other 5,625 -
TOTAL OPERATING DISBURSEMENTS 994,198 73,798
OPERATING (LOSS) (137,297) (73,798)
NONOPERATING RECEIPTS
Interest receipts 11,448 224
Other receipts 13,512 1,772
TOTAL NONOPERATING RECEIPTS 24,960 1,996
(LOSS) BEFORE OPERATING TRANSFERS (112,337) (71,802)
Operating transfers in (out) (23,367) 69,400
NET (LOSS) (135,704) (2,402)
NET ASSETS, January 1 695,113 3,701
NET ASSETS, December 31 $ 559,409 $ 1,299

See accompanying notes.

20
TANEY COUNTY, MISSOURI
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS – MODIFIED CASH BASIS
Year Ended December 31, 2010
Internal
Enterprise Service
Fund Fund
Transfer Employee
Station Fund Benefits Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 870,413 $ -
Cash paid to suppliers (782,533) (72,026)
Cash paid to employees (211,665) -
NET CASH (USED)
BY OPERATING ACTIVITIES (123,785) (72,026)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 11,448 224
NET CASH PROVIDED BY
INVESTING ACTIVITIES 11,448 224
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from (to) other funds (23,367) 69,400
NET CASH PROVIDED (USED) BY
NONCAPITAL FINANCING ACTIVITIES (23,367) 69,400
NET (DECREASE) IN
CASH AND CASH EQUIVALENTS (135,704) (2,402)
CASH AND CASH EQUIVALENTS, Beginning of year 695,113 3,701
CASH AND CASH EQUIVALENTS, End of year $ 559,409 $ 1,299

RECONCILIATION OF OPERATING (LOSS) TO
NET CASH (USED) BY OPERATING ACTIVITIES:
Operating (loss) $ (137,297) $ (73,798)
Adjustments to reconcile operating (loss)
to net cash (used) by operating activities:
Other receipts 13,512 1,772
NET CASH (USED)
BY OPERATING ACTIVITIES $ (123,785) $ (72,026)

See accompanying notes.

21
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS
December 31, 2010

Sheriff's Sheriff's Sheriff's Sheriff's Financial Land Prosecuting
Office Office Office Office Sheriff Collector Institution Sales Unclaimed Attorney Fines and
Prisoner Transport General Bond Commissary of Revenue Tax Surplus Fee Restitution Forfeitures
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 19 $ 585 $ 75 $ 14 $ 37,749 $ 39,726,622 $ 36,729 $ 103,254 $ 35,973 $ 19,059 $ 94,898
TOTAL ASSETS $ 19 $ 585 $ 75 $ 14 $ 37,749 $ 39,726,622 $ 36,729 $ 103,254 $ 35,973 $ 19,059 $ 94,898
LIABILITIES
Due to others $ 19 $ - $ - $ 14 $ 37,749 $ - $ - $ 103,254 $ 35,973 $ 19,059 $ -
Due to other governments - 585 75 - - 39,726,622 36,729 - - - 94,898
TOTAL LIABILITIES $ 19 $ 585 $ 75 $ 14 $ 37,749 $ 39,726,622 $ 36,729 $ 103,254 $ 35,973 $ 19,059 $ 94,898

See accompanying notes.

22
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS (CONTINUED)
December 31, 2010

Prosecuting
Attorney Protest Prosecuting
Criminal Circuit DSS Witness Recorder's Tax Attorney Juvenile Senior
Cost Clerk Supplemental Fee User Fee Account Bad Check Restitution Services
Fund Fund Fund Fund Fund Fund Fund Fund Fund Total
ASSETS
Cash and investments $ 778 $ 1,130,233 $ 2,426 $ 8,902 $ 244,931 $ 492,394 $ 9,564 $ 1,547 $ 75,084 $ 42,020,836
TOTAL ASSETS $ 778 $ 1,130,233 $ 2,426 $ 8,902 $ 244,931 $ 492,394 $ 9,564 $ 1,547 $ 75,084 $ 42,020,836
LIABILITIES
Due to others $ - $ - $ - $ 8,902 $ - $ 492,394 $ 9,564 $ 1,547 $ 75,084 $ 783,559
Due to other governments 778 1,130,233 2,426 - 244,931 - - - 41,237,277
TOTAL LIABILITIES $ 778 $ 1,130,233 $ 2,426 $ 8,902 $ 244,931 $ 492,394 $ 9,564 $ 1,547 $ 75,084 $ 42,020,836

See accompanying notes.
23
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

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, 2010

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, 2010

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, 2010

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, 2010

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, 2010

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, 2010, all bank balances on deposit are entirely insured or collateralized with
securities.

The County’s investments at December 31, 2010, are as follows:

Investment Type Maturity Carrying Value Fair Value
Taney County
Certificates of Deposit 1/8/2011-9/24/2013 $ 19,913,000 $ 20,062,513
FHLMC one time call 7/29/2013 1,000,000 1,003,000
FHLB Bonds US Domestic 4/29/2013-8/6/2013 2,499,700 2,507,377
FHLB Global Bonds 9/16/2011-3/20/2013 5,534,720 5,588,536
FNMA Callable Note 3/28/2013 500,000 499,350
Fannie Mae Notes - US Domestic 5/6/2013 1,499,325 1,506,701
Fannie Mae Global Notes 1/25/2013-11/8/2013 2,998,933 2,981,502
Freddie MAC Global Notes 6/28/2013 2,000,000 2,011,350
35,945,678 36,160,329
Less: Investments held for the
Taney County Regional Sewer District (25,082,560) (25,082,560)
Total Investments Primary Government $ 10,863,118 $ 11,077,769

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, 2010, all certificates of
deposit are entirely insured or collateralized with securities.

29
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

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, 2010, all bank
balances on deposit are entirely insured or collateralized.

The District’s investments at December 31, 2010, are as follows:

Investment Type Maturity Fair Value
Certificates of Deposit 1/8/2011 - 9/12/2013 $ 8,984,744
FHLMC one time call 7/29/2013 1,003,000
FHLB Bonds US Domestic 4/29/2013 - 8/6/2013 2,507,377
FHLB Global Bonds 9/16/2011 - 3/20/2013 5,588,536
FNMA Callable Note 3/28/2013 499,350
Fannie Mae Notes - US Domestic 5/6/2013 1,506,701
Fannie Mae Global Notes 1/25/2013 - 11/8/2013 2,981,502
Freddie MAC Global Notes 6/28/2013 2,011,350
$ 25,082,560

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, 2010, 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, 2010

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, 2010, 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.

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, 2010, all bank balances
on deposit are entirely insured or collateralized.

Investments of the Board as of December 31, 2010, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 3/23/2011 $ 252,968
Certificate of Deposit 4/17/2011 496,171
Certificate of Deposit 11/25/2011 189,776
Certificate of Deposit 11/25/2011 189,776
$ 1,128,691

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, 2010, all certificates of deposit
were insured or collateralized with securities.

31
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE B – CASH AND INVESTMENTS (continued)

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, 2010, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 7/18/2011 $ 8,501

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, 2010,
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.

32
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

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.

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.

33
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE E – PENSION PLAN – LAGERS (continued)

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 11.3% (general), and 11.8% (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.

Annual Pension Cost (APC) and Net Pension Obligation (NPO)

The subdivision’s annual pension cost and net pension obligation for the current year were as follows:

Annual required contribution $ 1,116,987
Interest on net pension obligation -
Adjustment to annual required contribution -
Annual pension cost 1,116,987
Actual contributions 1,116,987
Increase (decrease) in NPO -
NPO beginning of year -
NPO end of year $ -

34
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE E – PENSION PLAN – LAGERS (continued)

The annual required contribution (ARC) was determined as part of the February 29, 2008, and February 28,
2009, annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions 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 an open basis. The amortization period at February 29, 2008, was 17 years for the General
division and 17 years for the Police division. The amortization period at February 28, 2009, was 20 years for
the General division and 24 years for the Police division.

Three-Year Trend Information

Fiscal Annual Percentage Net
Year Pension of APC Pension
Ending Cost (APC) Contributed Obligation
6/30/2008 $ 966,508 100% $ -
6/30/2009 1,094,632 100% -
6/30/2010 1,116,987 100% -

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

(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
2/28/2010 $ 10,270,272 $ 13,317,256 $ 3,046,984 77% $ 9,950,757 31%

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, 2010

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 2010 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 $ 886,271,100
Personal property 136,945,125
Railroad and utilities 2,246,170
$1,025,462,395
TAX LEVY
General Fund $ -

The legal debt margin at December 31, 2010, is computed as follows:

Constitutional debt limit $ 102,546,240
General obligation bonds payable -
LEGAL DEBT MARGIN $ 102,546,240

(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, 2010

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, 2010, are due as
follows:

Year Ended Administrative
December 31, Principal Interest Fee Total
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
$ 11,710,000 $ 3,980,357 $ 614,362 $ 16,304,719

The following table is a summary of the changes in the long-term debt for the year ended December 31, 2010:

Balance Balance
December 31, New December 31,
2009 Obligations Retired 2010

2004 SRF Revenue Bonds Payable $ 12,500,000 $ - $ 790,000 $ 11,710,000

37
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

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, 2010, are as follows:

Year Ended
December 31,
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 21,886,802
LESS AMOUNT REPRESENTING INTEREST (5,291,802)
PRINCIPAL BALANCE, DECEMBER 31, 2010 $ 16,595,000

38
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

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, 2010:

Balance Balance
December 31, December 31,
2009 Additions Retirements 2010
2006 Certificates of Participation $ 17,315,000 $ - $ 720,000 $ 16,595,000
Compensated absences 89,649 14,962 - 104,611
$ 17,404,649 $ 14,962 $ 720,000 $ 16,699,611

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,
2010, 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,
2009 Additions Retirements 2010
2008 COP's $ 793,377 $ - $ 42,485 $ 750,892
Compensated absences 105,096 3,085 - 108,181
$ 898,473 $ 3,085 $ 42,485 $ 859,073

39
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

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

Debt service payments are as follows:

Year Ended
December 31, Principal Interest Total
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
$ 750,892 $ 255,944 $ 1,006,836

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, 2010

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

The following is a schedule of payments under the loan:

Year Ended
December 31, Principal
2011 $ 30,000
2012 30,000
2013 30,000
2014 30,000
2015 30,000
2016-2018 72,500
$ 222,500

The summary of changes in the loan for the year ended December 31, 2010, is as follows:

Balance, December 31, 2009 $ 252,500
Additions -
Deletions (30,000)
Balance, December 31, 2010 $ 222,500

NOTE K – LEASE PAYABLE

On November 1, 2010, the Board issued Taxable Lease Certificates of Participation – Recovery Zone Economic
Development Project Series 2010 for the construction of a new sheltered workshop facility. As of December
31, 2010, the facility had not been completed. As of December 31, 2010, the Board has received $1,089,213 of
the lease proceeds. The remaining $184,794 is held by the Project’s trustee for completion of the project. The
Board has designated the Certificates as Recovery Zone Economic Development Bonds. The Board has elected
to receive a credit from the Secretary of the United States Department of the Treasury in accordance with
Section 6431 of the IRS code equal to 45% of the stated interest paid on the Bonds. Such payments will be
received directly by the Board and used to make interest payments due on the Certificates. Receipt of the
interest subsidy is subject to the Board filing an IRS Form 80-38-CP. The failure of the Board to file Form 80-
38-CP could reduce or eliminate the amount of the interest subsidy.

41
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE K – LEASE PAYABLE (continued)

The lease agreement requires principal payments ranging from $55,000 to $120,000 plus interest at 6%.
Principal payments are due December 1 of each year with interest due semi-annually on June 1 and
December 1.

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

The total annual minimum lease payments required at December 31, 2010, are as follows:

Year Ended
December 31, Principal
2011 $ 136,900
2012 135,945
2013 137,088
2014 138,133
2015 138,875
2016 134,475
2017 134,750
2018 134,883
2019 134,713
2020 134,345
2021 133,458
2022 132,375
2023 130,988
2024 129,335
2025 127,300
TOTAL MINIMUM LEASE PAYMENTS 2,013,563
LESS AMOUNT REPRESENTING INTEREST (713,563)
PRINCIPAL BALANCE, DECEMBER 31, 2010 $ 1,300,000

42
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE K – LEASE PAYABLE (continued)

The following schedule presents the changes in the long-term debt for the year ended December 31, 2010:

Balance Balance
December 31, December 31,
2009 Additions Retirements 2010
2010 Certificates of Participation $ - $ 1,300,000 $ - $ 1,300,000

NOTE L – LINE OF CREDIT

At December 31, 2010, the Organization had a $375,000 secured line of credit with Commerce Bank for
construction to be drawn upon as needed with a variable interest rate not to exceed 4%. As of December 31,
2010, $349,500 is outstanding and due October 4, 2011. A total of $4,706 of interest was paid in the current
year.

NOTE M – MORTGAGE PAYABLE – DORGAN-WEAVER HOUSING CORPORATION

As of December 31, 2010, 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.

The following represents the changes in the mortgage payable during the year ended December 31, 2010:

Balance, December 31, 2009 $ 1,531,400
Additions -
Reductions -
Balance, December 31, 2010 $ 1,531,400

43
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE N – 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 O – 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, 2010, only
$15,590,000 of these bonds has been issued.

NOTE P – 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, 2010, and the Health Center is not aware of any unasserted claims or unreported incidents at
December 31, 2010.

44
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE Q – CAPITAL ASSETS – TANEY COUNTY HEALTH CENTER

Capital asset activities for the year ended December 31, 2010, were as follows:

Balance Balance
December 31, December 31,
2009 Additions Deletions 2010
Business-Type Activities
Health Center
Nondepreciable capital assets:
Land $ 200,000 $ - $ - $ 200,000
Total Nondepreciable Capital Assets 200,000 $ - $ - 200,000
Depreciable capital assets:
Buildings and improvements 2,609,238 $ - $ - 2,609,238
Equipment and furniture 679,578 38,374 - 717,952
3,288,816 $ 38,374 $ - 3,327,190
Less accumulated depreciation
Buildings and improvements 412,776 $ 74,653 $ - 487,429
Equipment and furniture 434,277 77,065 - 511,342
847,053 $ 151,718 $ - 998,771
Total Depreciable Capital Assets, net 2,441,763 2,328,419
Total Capital Assets -
Business-Type Activities, net $ 2,641,763 $ 2,528,419

45
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE R – CAPITAL ASSETS – TANEY COUNTY REGIONAL SEWER DISTRICT

Capital asset activity for the year ended December 31, 2010, was as follows:

Balance Balance
December 31, December 31,
2009 Additions Deletions 2010
Business-Type Activities
Sewer
Nondepreciable capital assets:
Land $ 106,576 $ - $ - $ 106,576
Contruction in progress 5,363,989 1,565,482 5,363,989 1,565,482
Total Nondepreciable Capital Assets 5,470,565 $ 1,565,482 $ 5,363,989 1,672,058
Depreciable capital assets:
Sewer System 50,658,761 $ 9,078,435 $ - 59,737,196
Equipment 224,756 27,334 - 252,090
50,883,517 $ 9,105,769 $ - 59,989,286
Less accumulated depreciation
Sewer System 7,179,195 $ 1,736,632 $ - 8,915,827
Equipment 145,538 12,851 - 158,389
7,324,733 $ 1,749,483 $ - 9,074,216
Total Depreciable Capital Assets, net 43,558,784 50,915,070
Total Capital Assets -
Business-Type Activities, net $ 49,029,349 $ 52,587,128

46
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE S – INTERFUND TRANSFERS

Interfund transfers for the year ended December 31, 2010, consisted of the following:

Transfers
In (Out)
General Fund $ 903,562
Road and Bridge Trust Fund (2,016,298)
Road and Bridge Fund 1,424,920
Assessment Fund 70,327
Tax Maintenance Fund (75,000)
E-911 Fund (232,346)
Prosecuting Attorney Bad Check Fund (71,198)
Recorder User Fee Fund (50,000)
Employee Benefits Fund 69,400
Transfer Station Fund (23,367)
$ -

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 T – 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, 2010, the
Reserve Account balance was $1,969,223.

47
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2010

NOTE U – COMMITMENTS

At December 31, 2010, the County was committed to the following contract:

 Purchase of Road Barn from MoDot in the amount of $189,900.

NOTE V – COMMITMENTS – TANEY COUNTY REGIONAL SEWER DISTRICT

The District was committed to contracts for sewer system additions and improvements with HDR Engineering,
Inc. in the amount of $262,930, EGIS Engineering, Inc. in the amount of $18,125, and Great River Associates
in the amount of $235,400 as of December 31, 2010.

48
REQUIRED SUPPLEMENTARY INFORMATION
TANEY COUNTY, MISSOURI
SCHEDULE OF FUNDING PROGRESS
Year Ended December 31, 2010

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

2/29/2008 $ 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%
2/28/2010 10,270,272 13,317,256 3,046,984 77% 9,950,757 31%

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.

50
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND – MODIFIED CASH BASIS
Year Ended December 31, 2010

Variance
Original Final With Final
RECEIPTS Budget Budget Actual Budget
Taxes
County sales tax $ 8,131,000 $ 8,131,000 $ 8,228,009 $ 97,009
Surtax 8,100 8,100 8,666 566
Payment in lieu of taxes 113,000 113,000 123,421 10,421
8,252,100 8,252,100 8,360,096 107,996
Collector's Commission
Collection commissions 530,000 530,000 714,592 184,592
Licenses and Permits
Beverage licenses 60,000 60,000 63,152 3,152
ATV permits 500 500 650 150
60,500 60,500 63,802 3,302
Intergovernmental Revenues
Federal 178,000 178,000 592,565 414,565
Other 266,937 266,937 263,824 (3,113)
444,937 444,937 856,389 411,452
Fees and Charges
Court 70,000 70,000 85,510 15,510
Public administration 85,000 85,000 51,068 (33,932)
County clerk 1,000 1,000 870 (130)
Recorder of deeds 900,000 900,000 1,010,257 110,257
Tax sale publication 8,000 8,000 15,984 7,984
Planning and zoning 35,000 35,000 91,473 56,473
Sheriff fees 530,000 530,000 578,365 48,365
Phone and vending 600 600 571 (29)
Election reimbursement 70,000 70,000 54,162 (15,838)
Computer room 2,000 2,000 5,524 3,524
Airport 1,244,322 1,244,322 529,210 (715,112)
2,945,922 2,945,922 2,422,994 (522,928)
Other
Interest income 200,000 200,000 170,127 (29,873)
Miscellaneous 78,600 78,600 244,294 165,694
Sale of property 12,000 12,000 39,385 27,385
290,600 290,600 453,806 163,206
TOTAL RECEIPTS 12,524,059 12,524,059 12,871,679 347,620
DISBURSEMENTS
Current
General Government
University extension 46,934 46,934 47,392 (458)
Collector of revenue 240,764 240,764 224,819 15,945
Treasurer 86,430 86,430 84,125 2,305
Recorder of deeds 318,724 318,724 281,614 37,110
County commission 329,300 329,300 424,925 (95,625)
Employee fringe benefits 2,063,666 2,063,666 1,893,371 170,295
Information technology 430,514 430,514 412,323 18,191
Planning and zoning 395,035 395,035 362,572 32,463
Election and voter registration 151,787 151,787 152,598 (811)
County clerk 191,429 191,429 179,087 12,342
Auditor 144,382 144,382 138,794 5,588
Building and grounds 846,472 846,472 781,334 65,138
5,245,437 5,245,437 4,982,954 262,483

51
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND – MODIFIED CASH BASIS (CONTINUED)
Year Ended December 31, 2010

Variance
Original Final With Final
Budget Budget Actual Budget
Judicial
Court administration 42,750 42,750 43,334 (584)
Associate circuit #2 - - 1,100 (1,100)
Circuit judge 65,548 65,548 54,426 11,122
Circuit clerk 112,271 112,271 104,679 7,592
Coroner 47,030 47,030 54,572 (7,542)
Court reporter 36,776 36,776 35,194 1,582
Child support - - 139 (139)
Public administrator 91,780 91,780 95,012 (3,232)
Juvenile 127,874 127,874 129,852 (1,978)
Prosecuting attorney 618,355 618,355 673,105 (54,750)
1,142,384 1,142,384 1,191,413 (49,029)
Public Safety
Sheriff 2,451,546 2,451,546 2,372,597 78,949
Jail 1,441,145 1,441,145 1,197,732 243,413
Animal control 169,000 169,000 168,997 3
Emergency management 170,114 170,114 83,301 86,813
4,231,805 4,231,805 3,822,627 409,178
Other 10,038,175 10,038,175 1,988,972 8,049,203
Public Works
Sewer 345,941 345,941 168,955 176,986
Industrial Development Board 127,500 127,500 80,456 47,044
473,441 473,441 249,411 224,030
Airport
Airport 1,276,625 1,276,625 697,911 578,714
Debt Service
Principal and interest 1,421,282 1,421,282 1,421,864 (582)
TOTAL DISBURSEMENTS 23,829,149 23,829,149 14,355,152 9,473,997
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (11,305,090) (11,305,090) (1,483,473) 9,821,617
OTHER FINANCING
SOURCES (USES)
Operating transfers (out) (95,000) (95,000) (121,847) (26,847)
Operating transfers in 1,157,822 1,157,822 1,025,409 (132,413)
TOTAL OTHER FINANCING
SOURCES (USES) 1,062,822 1,062,822 903,562 (159,260)
(DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (10,242,268) (10,242,268) (579,911) 9,662,357
FUND BALANCE, January 1 10,256,890 10,256,890 10,256,890 -
FUND BALANCE, December 31 $ 14,622 $ 14,622 $ 9,676,979 $ 9,662,357

52
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – ROAD AND BRIDGE TRUST FUND – MODIFIED CASH
BASIS
Year Ended December 31, 2010

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 6,500,000 $ 6,500,000 $ 6,562,738 $ 62,738
Intergovernmental receipts - - 73,245 73,245
Other receipts 120,000 120,000 141,098 21,098
TOTAL RECEIPTS 6,620,000 6,620,000 6,777,081 157,081
DISBURSEMENTS
Highway and Roads
Wages and benefits 1,042,286 1,042,286 876,598 165,688
Computer related disbursements 6,100 6,100 7,050 (950)
Mileage and training 700 700 729 (29)
Professional services 55,500 55,500 21,441 34,059
Rental equipment 40,000 40,000 12,245 27,755
Telephone and utilities 46,150 46,150 38,403 7,747
Insurance 170,000 170,000 82 169,918
Repair and maintenance 270,000 270,000 289,533 (19,533)
Equipment 112,500 112,500 8,145 104,355
Road construction 650,000 650,000 766,163 (116,163)
Road supplies 2,320,000 2,320,000 1,776,135 543,865
Bridges - - 361,439 (361,439)
Other supplies 407,700 407,700 444,427 (36,727)
Other 132,400 132,400 170,087 (37,687)
TOTAL DISBURSEMENTS 5,253,336 5,253,336 4,772,477 480,859
EXCESS OF RECEIPTS
OVER DISBURSEMENTS 1,366,664 1,366,664 2,004,604 637,940
OTHER FINANCING (USES)
Operating transfers (out) (2,022,500) (2,022,500) (2,016,298) 6,202
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS
AND OTHER (USES) (655,836) (655,836) (11,694) 644,142
FUND BALANCE, January 1 4,990,215 4,990,215 4,990,215 -
FUND BALANCE, December 31 $ 4,334,379 $ 4,334,379 $ 4,978,521 $ 644,142

53
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – ROAD AND BRIDGE FUND – MODIFIED CASH BASIS
Year Ended December 31, 2010

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 916,000 $ 916,000 $ 1,206,386 $ 290,386
Other receipts 118,650 118,650 91,757 (26,893)
TOTAL RECEIPTS 1,034,650 1,034,650 1,298,143 263,493

DISBURSEMENTS
Highway and Roads 2,574,460 2,574,460 2,076,968 497,492
TOTAL DISBURSEMENTS 2,574,460 2,574,460 2,076,968 497,492
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (1,539,810) (1,539,810) (778,825) 760,985
OTHER FINANCING SOURCES (USES)
Operating transfers in 2,000,000 2,000,000 2,000,000 -
Operating transfers (out) (575,040) (575,040) (575,080) (40)
TOTAL OTHER FINANCING
SOURCES (USES) 1,424,960 1,424,960 1,424,920 (40)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (114,850) (114,850) 646,095 760,945
FUND BALANCE, January 1 326,237 326,237 326,237 -
FUND BALANCE, December 31 $ 211,387 $ 211,387 $ 972,332 $ 760,945

54
OTHER FINANCIAL INFORMATION
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES – NON-MAJOR SPECIAL REVENUE FUNDS – MODIFIED CASH BASIS
December 31, 2010

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 $ 25,523 $ 9,229 $ 4,744 $ 633,276 $ 202,388 $ 89,810 $ 177,077 $ 1,865 $ 213,245
TOTAL ASSETS $ 25,523 $ 9,229 $ 4,744 $ 633,276 $ 202,388 $ 89,810 $ 177,077 $ 1,865 $ 213,245
FUND BALANCES
Fund Balance
Unreserved $ 25,523 $ 9,229 $ 4,744 $ 633,276 $ 202,388 $ 89,810 $ 177,077 $ 1,865 $ 213,245
TOTAL FUND BALANCES $ 25,523 $ 9,229 $ 4,744 $ 633,276 $ 202,388 $ 89,810 $ 177,077 $ 1,865 $ 213,245

56
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES – NON-MAJOR SPECIAL REVENUE FUNDS – MODIFIED CASH BASIS
(CONTINUED)
December 31, 2010

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 $ 32,186 $ 7,482 $ 7,679 $ 398,662 $ 45,141 $ 9,695 $ 57,449 $ 1,915,451
TOTAL ASSETS $ 32,186 $ 7,482 $ 7,679 $ 398,662 $ 45,141 $ 9,695 $ 57,449 $ 1,915,451
FUND BALANCES
Fund Balance
Unreserved $ 32,186 $ 7,482 $ 7,679 $ 398,662 $ 45,141 $ 9,695 $ 57,449 $ 1,915,451
TOTAL FUND BALANCES $ 32,186 $ 7,482 $ 7,679 $ 398,662 $ 45,141 $ 9,695 $ 57,449 $ 1,915,451

57
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, 2010

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 $ - $ - $ - $ 530,691 $ - $ - $ - $ - $ -
Intergovernmental receipts - - - - - - - 5,282 -
Fees and charges 531,241 7,736 1,253 829 144,348 21,540 50,067 - 36,403
Other receipts 1,712 141 95 10,720 3,207 1,389 8,096 40 4,010
TOTAL RECEIPTS 532,953 7,877 1,348 542,240 147,555 22,929 58,163 5,322 40,413
DISBURSEMENTS
Current
General government 601,674 - - - 18,674 - - - -
Judicial - - 2,538 - - - - - 35,940
Public safety - 5,783 - 447,242 - - 37,500 6,216 -
TOTAL DISBURSEMENTS 601,674 5,783 2,538 447,242 18,674 - 37,500 6,216 35,940
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (68,721) 2,094 (1,190) 94,998 128,881 22,929 20,663 (894) 4,473
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) 70,327 - - (232,346) (75,000) - - - (71,198)
TOTAL OTHER FINANCING
SOURCES (USES) 70,327 - - (232,346) (75,000) - - - (71,198)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) 1,606 2,094 (1,190) (137,348) 53,881 22,929 20,663 (894) (66,725)
FUND BALANCE, January 1 23,917 7,135 5,934 770,624 148,507 66,881 156,414 2,759 279,970
FUND BALANCE, December 31 $ 25,523 $ 9,229 $ 4,744 $ 633,276 $ 202,388 $ 89,810 $ 177,077 $ 1,865 $ 213,245

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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, 2010

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 $ - $ - $ - $ - $ - $ - $ - $ 530,691
Intergovernmental receipts 6,452 2,000 37,908 - - - - 51,642
Fees and charges - - 2,582 219,337 15,523 8,681 24,403 1,063,943
Other receipts 455 164 4,319 6,765 354 96 805 42,368
TOTAL RECEIPTS 6,907 2,164 44,809 226,102 15,877 8,777 25,208 1,688,644
DISBURSEMENTS
Current
General government - - 56,898 158,550 - - - 835,796
Judicial - - - - 7,555 - - 46,033
Public safety 4,999 6,213 - - - 8,259 1,547 517,759
TOTAL DISBURSEMENTS 4,999 6,213 56,898 158,550 7,555 8,259 1,547 1,399,588
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS 1,908 (4,049) (12,089) 67,552 8,322 518 23,661 289,056
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) - - - (50,000) - - - (358,217)
TOTAL OTHER FINANCING
SOURCES (USES) - - - (50,000) - - - (358,217)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) 1,908 (4,049) (12,089) 17,552 8,322 518 23,661 (69,161)
FUND BALANCE, January 1 30,278 11,531 19,768 381,110 36,819 9,177 33,788 1,984,612
FUND BALANCE, December 31 $ 32,186 $ 7,482 $ 7,679 $ 398,662 $ 45,141 $ 9,695 $ 57,449 $ 1,915,451

59
 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, 2010, which collectively
comprise Taney County, Missouri’s basic financial statements and have issued our report thereon dated May 27,
2011. In our report, our opinion was modified because the Primary Government of the County, the Taney
County Board for the Developmentally Disabled, and the Dorgan-Weaver Housing Corporation 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 questioned costs, we identified a certain deficiency in internal control
over financial reporting that we consider to be a material weakness.

60
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 10-1.

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 May 27, 2011.

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.
May 27, 2011

61
 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 programs for the year ended December 31, 2010. Taney County, Missouri's
major federal programs are identified in the summary of auditor's results section of the accompanying schedule
of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants
applicable to its major federal programs 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.

In our opinion, Taney County, Missouri complied, in all material respects, with the requirements referred to
above that are applicable to its major federal programs for the year ended December 31, 2010.

62
Taney County Commission
Taney County
Forsyth, Missouri

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.
May 27, 2011

63
TANEY COUNTY, MISSOURI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2010

Federal Grantor Federal
Pass Through Grantor/ CFDA Pass-through Federal
Program Title Number Grantor's Number Expenditures
U.S. DEPARTMENT OF THE TREASURY
Direct
Equitable Sharing of seized Property 21.000 $ 4,999
TOTAL U.S. DEPARTMENT OF THE TREASURY 4,999
U.S. DEPARTMENT OF HOMELAND SECURITY
State of Missouri Emergency Management Agency
Emergency Management Performance Grant 97.042 N/A 13,656
TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY 13,656
U.S. DEPARTMENT OF TRANSPORTATION
Missouri Department of Transportation
State and Community Highway Safety 20.600 STP 9900 10,413
TOTAL U.S. DEPARTMENT OF TRANSPORTATION 10,413
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Missouri Department of Social Services
ARRA - Homeless Prevention and Rapid
Rehousing Grant 14.257 ER 16410047A 91,000
TOTAL U.S. DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT 91,000
U.S. DEPARTMENT OF AGRICULTURE
State of Missouri Treasurer's Office
School and Roads Grants to States 10.665 N/A 23,837
Direct
Cooperative Agreement 10.000 N/A 8,401
TOTAL U.S. DEPARTMENT OF AGRICULTURE 32,238
U.S. DEPARTMENT OF JUSTICE
Direct
Public Safety Partnership and Community Policing 16.710 364,762
Bullet Proof Vest Partnership Grant 16.607 N/A 5,282
Missouri Internet Crimes Against Children Task Force
ARRA - Internet Crimes Against Children 16.800 N/A 60,499
Missouri Department of Public Safety
ARRA - Edward Byrnes Memorial Assistance Grant 16.803 2009-SB-B9-2650 40,106
2009-MJCCG-027 26,241
2009-MJCCG-0013 91,397
Edward Byrnes Memorial Assistance Grant 16.738 2009-DJ-BX-101 12,589
Missouri Sheriff Association
Domestic Cannibus Eradication Program 16.000 6,306
TOTAL U.S. DEPARTMENT OF JUSTICE 607,182
U.S. DEPARTMENT OF DEFENSE
Direct
Cooperative Agreement 12.000 N/A 11,104
TOTAL U.S. DEPARTMENT OF DEFENSE 11,104
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 754,489

N/A – Not Applicable
64
TANEY COUNTY, MISSOURI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED)
Year Ended December 31, 2010

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.

65
TANEY COUNTY, MISSOURI
SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2010

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 Safety Partnership and Community Policing 16.710
Recovery Act – Edward Byrnes Memorial Assistance Grant 16.803

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

10-1 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, 2010

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.

67
TANEY COUNTY, MISSOURI
SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended December 31, 2010

There were no prior audit findings.

68