2011 Audit Report

TANEY COUNTY, MISSOURI
BASIC FINANCIAL STATEMENTS
Year Ended December 31, 2011
 TABLE OF CONTENTS

INDEPENDENT AUDITORS’ REPORT...................................................................................................................... 1

MANAGEMENT’S DISCUSSION AND ANALYSIS............................................................................................... 3

BASIC FINANCIAL STATEMENTS
Statement of Net Assets – Modified Cash Basis................................................................................................ 11
Statement of Net Assets – Taney County Regional Sewer District …………………………………. 12
Statement of Activities – Modified Cash Basis................................................................................................. 13
Statement of Activities – Taney County Regional Sewer District…………………………………. 14
Statement of Assets and Fund Balances – Governmental
Funds – Modified Cash Basis....................................................................................................................... 15
Statement of Receipts, Disbursements and Changes in Fund
Balances – Governmental Funds – Modified Cash Basis ........................................................................... 16
Statement of Net Assets – Proprietary Funds – Modified Cash Basis.............................................................. 17
Statement of Receipts, Disbursements and Changes in Net
Assets – Proprietary Funds – Modified Cash Basis........................................................................................... 18
Statement of Cash Flows – Proprietary Funds – Modified Cash Basis ................................................................19
Statement of Assets and Liabilities – Agency Funds – Modified Cash Basis...................................................... 20
Notes to Basic Financial Statements .......................................................................................................................... 21

REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress .................................................................................................................................... 37
Budgetary Comparison Schedule – General Fund – Modified Cash Basis..................................................... 38
Budgetary Comparison Schedule – Road and Bridge Trust Fund -
Modified Cash Basis.....................................................................................................................................................39
Budgetary Comparison Schedule – Road and Bridge Fund –
Modified Cash Basis.................................................................................................................................................... 40
OTHER FINANCIAL INFORMATION
Combining Statement of Assets and Fund Balances – Non-Major
Special Revenue Funds – Modified Cash Basis ................................................................................................ 43
Combining Statement of Receipts, Disbursements, and Changes in Fund
Balance – Non-Major Special Revenue Funds – Modified Cash Basis......................................................... 46
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................................................ 49
 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, each major fund, and the aggregate remaining fund information of Taney County, Missouri, as of
and for the year ended December 31, 2011, 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 did not audit the financial statements of the Taney County Regional Sewer District, the County’s
component unit. Those financial statements were audited by other auditors whose report thereon has been
furnished to us, and our opinion, insofar as it relates to the amounts included for the Taney County Regional
Sewer District, is based on the report of other auditors.

We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the 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 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, based on our audit and the report of other auditors, 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, each major fund, and the aggregate
remaining fund information of Taney County, Missouri, as of December 31, 2011, 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

In accordance with Government Auditing Standards, we have also issued our report dated September 17, 2012, 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.

Hurlbert CPA, LLC
September 17, 2012

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MANAGEMENT’S DISCUSSION AND ANALYSIS

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 TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2011

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, 2011, 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 increased by $2,023,155.
 The fund balance for the General Fund increased by $441,449.
 The fund balance for the Road and Bridge Trust Fund increased by $373,784.
 The Road and Bridge Fund increased $1,272,512.
 Net assets in the County not including the sewer fund increased $2 million 2011. This increase is mainly
attributable to unanticipated sales tax revenues and unspent appropriations.
 The sewer fund cash decreased nearly 25 million this would be offset with assets due to projects. These
assets are sometimes booked in other entities if they have agreed to the maintenance and upkeep of the
sewer system involved.
 The total cost of the County’s governmental activities were slightly less than the prior year.
Still balances forward increased due in part to the following:

o Public works and roads capital projects expenditures were in maintenance mode and only a few
capital projects were taken on this year. We did make some improvements that we feel will make the
department more efficient.
o Debt service payments on the long-term debt remained near the same.
o Sales tax collections for 2011 were down slightly, but higher than anticipated.

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, 2011

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, 2011

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,
2011 2010
ASSETS
Cash and investments $ 20,137,146 $ 18,103,991
TOTAL ASSETS $ 20,137,146 $ 18,103,991

NET ASSETS
Unrestricted $ 20,137,146 $ 18,103,991
TOTAL NET ASSETS $ 20,137,146 $ 18,103,991
TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2011

Changes in Net Assets – Modified Cash Basis

Year Ended December 31,
2011 2010
RECEIPTS Program Receipts
Charges for services $ 5,481,009 $ 5,113,058
Operating grants and contributions 1,321,115 680,899
Capital grants and contributions 189,764 475,459

General Receipts
Tax receipts 16,545,246 16,659,911
Interest 284,227 321,448
Other receipts 250,794 194,831
TOTAL RECEIPTS 24,072,155 23,445,606
DISBURSEMENTS
General government 13,864,958 14,759,322
Public safety and judicial 4,902,165 5,577,832
Tax administration 805,534 845,167
Debt service 1,434,075 1,421,864
Transfer station 1,042,268 994,198
TOTAL DISBURSEMENTS 22,049,000 23,598,383
(DECREASE) IN NET ASSETS $ 2,023,155 $ (152,777)

Overall receipts of the County increased by $626,549 from the prior year. Tax revenues were down $114,665,
which represents an 0.8% decrease from the prior year. Overall disbursements of the County were down
$1,549,383.
TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2011

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 increased by $441,449 for the year ended December 31, 2011.
 The Road and Bridge Fund balance increased by $1,272,512 for the year ended December 31,
2011.
 The Road and Bridge Trust Fund increased by $373,784 which increased the fund balance to
$5,352,305 as of December 31, 2011.
 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 $ 7,599,611 $ 7,599,611 $ 8,587,668
Licenses and Permits 70,500 70,500 71,173
Intergovernmental Revenues 337,300 337,300 711,995
Fees and Charges 2,885,350 2,885,350 3,299,456
Miscellaneous 200,600 200,600 283,002
TOTAL RECEIPTS $ 11,093,361 $ 11,093,361 $ 12,953,294

DISBURSEMENTS
General Government $ 5,084,449 $ 5,084,449 $ 4,813,308
Judicial 895,564 895,564 975,263
Public Safety 3,290,202 3,290,202 3,324,148
Other 9,539,414 9,539,414 1,945,828
Public Works 322,368 322,368 359,034
Airport 656,542 656,542 615,348
Debt Service 1,446,381 1,446,381 1,434,075
TOTAL DISBURSEMENTS $ 21,234,920 $ 21,234,920 $ 13,467,004

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2011

Management was of the opinion that we would not have as much revenue and slightly underestimated the
revenues for 2011. It was expected that we might spend more. Thanks to the efforts of employees and elected
officials we did not. We have budgeted for capital improvements that were expected to allow a good balance
forward into 2012.

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, 2011

PRIMARY GOVERNMENT
BUSINESS-
GOVERNMENTAL TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS:
Cash, cash equivalents:
Cash $ 19,650,901 $ 486,245 $ 20,137,146
Total assets 19,650,901 486,245 20,137,146

NET ASSETS:
Unrestricted 19,650,901 486,245 20,137,146
Total net assets $ 19,650,901 $ 486,245 $ 20,137,146

See accompanying notes to the
basic financial statements.

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 TANEY COUNTY, MISSOURI
STATEMENT OF NET ASSETS
TANEY COUNTY REGIONAL SEWER DISTRIICT
DECEMBER 31, 2011

COMPONENT UNIT
TANEY
COUNTY
REGIONAL
SEWER DISTRICT
ASSETS

Current Assets
Cash, cash equivalents: $ 739,172
Investments 111,307
Utilities receivable, net 106,613
Prepaid expensaes 6,294
Total current assets 963,386

Restricted Assets
Cash and cash equivalents 1,512,720
Investments 100,428
Total restricted assets 1,613,148

Deferred bond issuance costs 173,170

Capital Assets
Nondepreciable 558,807
Depreciable, net 50,482,339
Total capital assets 51,041,146

Total assets 53,790,850

LIABILITIES AND NET ASSETS

Current liabilities
Accounts payable 253,791
Accrued expenses 69,031
Deposits payable 124,200
Accrued interest payable 257,760
Current maturities of long-term debt 800,000
Total current liabilities 1,504,782

Long-term liabilities
Arbitrage payable 61,683
Revenue bonds payable 10,110,000
Total long term liabilities 10,171,683

Total liabilities 11,676,465

NET ASSETS:
Invested in capital assets, net of related debt 40,131,146
Restricted for debt service 1,427,265
Unrestricted 555,974
Total net assets $ 42,114,385

See accompanying notes to the
basic financial statements.

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 TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES MODIFIED CASH BASIS
FOR THE YEAR ENDED DECEMBER 31, 2011

Primary Government
Net (Receitps) Expenditures and Changes in
Program Revenues Net Assets

Operating Capital Business-
Charges for Grants and Grants and Governmental Type
Functions/Programs Expenditures Services Contributions Contributions Activities Activities Total

Primary Government
Governmental Activities
General government $ 13,864,958 $ 2,245,784 $ 292,403 $ 189,764 $ (11,137,007) $ - $ (11,137,007)
Tax administration 805,534 1,077,313 456,481 - 728,260 - 728,260
Public safety and judicial 4,902,165 1,205,089 572,231 - (3,124,845) - (3,124,845)
Debt service 1,434,075 - - - (1,434,075) - (1,434,075)

Total Governmental activities 21,006,732 4,528,186 1,321,115 189,764 (14,967,667) - (14,967,667)

Business-type activities
Transfer station 1,042,268 952,823 - - - (89,445) (89,445)
Total business-type activities 1,042,268 952,823 - - - (89,445) (89,445)

Total Primary Government 1,042,268 952,823 - -

General Revenue
Taxes 16,545,246 - 16,545,246
Licenses and permits 70,573 - 70,573
Investment income 276,679 7,548 284,227
Gain on sale of assets 28,700 - 28,700
Miscellaneous 132,288 19,233 151,521
Transfers 10,500 (10,500) -

Total General Receipts, transfers, and other items 17,063,986 16,281 17,080,267

Change in Net Assets 2,096,319 (73,164) 2,023,155

Net Assets, beginning of year 17,544,582 559,409 17,544,582

Net Assets, end of year $ 19,640,901 $ 486,245 $ 19,567,737

See accompanying notes to the basic financial statements

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 TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES - TANEY COUNTY REGIONAL SEWER DISTRICT
FOR THE YEAR ENDED DECEMBER 31, 2011

Component Unit
Net (Revenues) Expenses and Changes in
Program Revenues Net Assets

Operating Capital Business-
Charges for Grants and Grants and Governmental Type
Functions/Programs Expenditures Services Contributions Contributions Activities Activities Total

Component Unit
Governmental Activities
Intergovernmental agreements $ 1,184,016 $ - $ - $ 257,345 $ (926,671) $ - $ (926,671)
Tax increment financing payments 685,012 - - - (685,012) - (685,012)
Other 809,282 - - - (809,282) - (809,282)

Total Governmental activities 2,678,310 - - 257,345 (2,420,965) - (2,420,965)

Business-type activities
Sewer 3,885,559 1,328,769 - - - (2,556,790) (2,556,790)
Total business-type activities 3,885,559 1,328,769 - - - (2,556,790) (2,556,790)

Total component unit $ 6,563,869 $ 1,328,769 $ - $ 257,345

General Revenue
Taxes 6,758,870 - 6,758,870
Licenses and permits - - -
Investment income 510,249 342,965 853,214
Gain on sale of assets - - -
Miscellaneous - 16,531 16,531
Transfer to Taney County (27,725,425) - (27,725,425)
Transfers (1,662,754) 1,662,754 -

Total General Receipts, transfers, and other items (22,119,060) 2,022,250 (20,096,810)

Change in Net Assets (24,540,025) (534,540) (25,074,565)

Net Assets, beginning of year 24,540,025 42,648,925 67,188,950

Net Assets, end of year $ - $ 42,114,385 $ 42,114,385

See accompanying notes to the basic financial statements

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 TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND FUND BALANCES
ARISING FROM MODIFIED CASH BASIS TRANSACTIONS
GOVERNMENTAL FUND TYPES
DECEMBER 31, 2011

ROAD AND
ROAD AND BRIDGE OTHER TOTAL
BRIDGE TRUST GOVERNMENTAL GOVERNMENTAL
GENERAL FUND FUND FUND FUNDS FUNDS
ASSETS
Cash and cash equivalents
Cash and investments $ 10,118,428 $ 2,244,844 $ 5,352,305 $ 1,925,324 $ 19,640,901
Total Assets $ 10,118,428 $ 2,244,844 $ 5,352,305 $ 1,925,324 $ 19,640,901

LIABILITIES AND FUND BALANCES
Liabilities:
Due to others $ - $ - $ - $ - -

Total Liabilities - - - - -

Fund balances
Reserved for emcumbrances - - - - -
Reserved for construction - - - - -
Unreserved 10,118,428 2,244,844 5,352,305 1,925,324 19,640,901

Total Fund Balances 10,118,428 2,244,844 5,352,305 1,925,324 19,640,901

Total Liabilities and Fund Balances $ 10,118,428 $ 2,244,844 $ 5,352,305 $ 1,925,324 $ 19,640,901

See accompanying notes to the basic financial statements.

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 TANEY COUNTY, MISSOURI
STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND
CHANGES IN FUND BALANCES - MODIFIED CASH BASIS
GOVERNMENTAL FUNDS TYPES
FOR THE YEAR ENDED DECEMBER 31, 2011

ROAD AND
ROAD AND BRIDGE NONMAJOR TOTAL
BRIDGE TRUST GOVERNMENTAL GOVERNMENTAL
GENERAL FUND FUND FUND FUNDS FUNDS
REVENUES COLLECTED:
Taxes $ 8,587,668 $ 1,194,531 $ 6,763,047 $ - $ 16,545,246
Intergovernmental 711,995 72,139 189,764 536,981 1,510,879
Fees, fines and forfeitures 3,370,629 - - 1,228,130 4,598,759
Miscellaneous 283,002 39,597 84,164 32,203 438,966
Total Revenues Collected 12,953,294 1,306,267 7,036,975 1,797,314 23,093,850

EXPENDITURES PAID:
Current:
General government 7,133,682 2,020,738 4,432,308 210,730 13,797,458
Tax administration 227,313 - - 578,221 805,534
Public safety and judicial 4,299,411 - - 602,754 4,902,165
Debt service 1,434,075 - - - 1,434,075
Total Expenditures Paid 13,094,481 2,020,738 4,432,308 1,391,705 20,939,232

Excess (Deficit) of Revenues Collected
over Expenditures Paid (141,187) (714,471) 2,604,667 405,609 2,154,618

OTHER FINANCING SOURCES (USES):
Transfers in 627,636 2,230,883 - - 2,858,519
Transfers out (45,000) (243,900) (2,230,883) (400,290) (2,920,073)
Total Other Financing Sources (Uses) 582,636 1,986,983 (2,230,883) (400,290) (61,554)

Excess (Deficit) of Revenues Collected over
Expenditures Paid and Other Sources (Uses) 441,449 1,272,512 373,784 5,319 2,093,064

Fund balance - beginning 9,676,979 972,332 4,978,521 1,915,451 17,543,283

Fund Balance, end of year $ 10,118,428 $ 2,244,844 $ 5,352,305 $ 1,920,770 $ 19,636,347

See accompanying notes to the basic financial statements.

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 TANEY COUNTY, MISSOURI
STATEMENT OF NET ASSETS, MODIFIED CASH BASIS --
PROPRIETARY FUNDS
DECEMBER 31, 2011

ENTERPRISE INTERNAL
FUND SERVICE FUND
TRANSFER EMPLOYEE
STATION BENEFITS
FUND FUND
ASSETS:
Current assets:
Cash and cash equivalents $ 486,245 $ -
Total current assets 486,245 -

Total assets $ 486,245 $ -

NET ASSETS:
Unrestricted $ 486,245 $ -

Total net assets $ 486,245 $ -

See accompanying notes to the
basic financial statements.

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 TANEY COUNTY, MISSOURI
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS, MODIFIED CASH BASIS --
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2011

ENTERPRISE INTERNAL
FUND SERVICE FUND
TRANSFER EMPLOYEE
STATION BENEFITS
FUND FUND
OPERATING RECEIPTS
Charges for services $ 952,823 $ -

Total operating receipts 952,823 -

OPERATING DISBURSEMENTS:
Insurance claims and disbursements - 80,113
Salaries and employee benefits 214,190 -
Supplies - -
Telephone and utilities 3,115 -
Repair and maintenance - -
Landfill services 693,722 -
Other operating expenses 129,963 -

Total operating disbursements 1,040,990 80,113

Operating income (loss) (88,167) (80,113)
.
NON-OPERATING RECEIPTS:
Interest income 7,548 301
Other receipts 19,233 5,181

Total non-operating receipts 26,781 5,482

Increase (decrease) before transfers (61,386) (74,631)

Transfers in (out) (11,778) 73,332

Net income (loss) (73,164) (1,299)

Total net assets - beginning 559,409 1,299

Total net assets - ending $ 486,245 $ -

See accompanying notes to the
basic financial statements.

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 TANEY COUNTY, MISSOURI
STATEMENT OF CASH FLOWS - MODIFIED CASH BASIS
PROPRIETARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2011

ENTERPRISE INTERNAL
FUND SERVICE FUND
TRANSFER EMPLOYEE
STATION BENEFITS
FUND FUND
CASH FLOWS FROM OPERATING ACTIVITIES:
Received from customers $ 972,056 $ -
Payments to employees and fringe benefits (214,190) -
Payments to vendors and suppliers (828,078) (74,932)

Net cash provided by operating activities (70,212) (74,932)

CASHFLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES:
Transfers from (to) other funds (10,500) 73,332

Net cash (used) by noncapital and related financing activities (10,500) 73,332

CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income 7,548 301

Net increase (decrease) in cash and cash equivalents (73,164) (1,299)

Cash and cash equivalents, beginning of the year 559,409 1,299

Cash and cash equivalents, end of the year $ 486,245 $ -

RECONCILIATION OF OPERATING LOSS TO NET CASH
USED BY OPERATING ACTIVITIES:
Operating income (loss) $ (88,167) $ (80,113)

Adjustments to reconcile operating income to net cash
used by operating activities:
Other receipts 19,233 5,181

Total adjustments 19,233 5,181

Net cash (used) by operating activities $ (68,934) $ (74,932)

See accompanying notes to the
basic financial statements.

-19-
 TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES --
FIDUCIARY FUNDS
DECEMBER 31, 2011

AGENCY FUNDS
ASSETS:
Cash $ 60,635,663

Total assets $ 60,635,663

LIABILITIES:
Due to others $ 60,635,663

$ 60,635,663
Total Liabilities

See accompanying notes to the
basic financial statements.

-20-
 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

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 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.

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 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

GOVERNMENT-WIDE FINANCIAL STATEMENTS

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.

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 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

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 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 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 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.

Property Tax Revenue
Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on September 1
and payable by December 31. Taxes paid after December 31 are subject to penalties. The County bills and
collects its own property taxes and also taxes for most other local governments within the County. Collections
for other governments and remittance of them to those governments are accounted for in various Agency
Funds.

Property tax revenue is recognized when it is collected.

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

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 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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.

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, 2011, all bank balances on deposit are
entirely insured or collateralized with securities.

The County’s investments at December 31, 2011, are as follows:
Carrying
Investment Type Maturity Fair Value
Value
Taney County
Certificates of Deposit 6/28/2012-6/17/2013 $ 17,515,000 $ 17,515,000
FHLB Global Bonds 8/22/2012 - 12/5/2014 7,492,490 7,492,490
Freddie MAC Global Notes 6/28/2013 2,000,000 2,000,000
27,007,490 27,007,490
Less: Investments held for the
Taney County Regional Sewer District
(27,007,490) (27,007,490)
Total Investments Primary Government $ - $ -

-24-
 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

NOTE B – CASH AND INVESTMENTS (continued)

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,
2011, all certificates of deposit are entirely insured or collateralized with securities.

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,
2011, all bank balances are entirely insured or collateralized.

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,
2011, all certificates of deposit are entirely insured or collateralized with securities.

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

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, 2011, 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.

-25-
 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

NOTE D – PENSION PLAN – CERF

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.

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 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

NOTE E – PENSION PLAN – LAGERS

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

LAGERS is a defined benefit pension plan, which provides retirement, disability, and death benefits to plan
members and beneficiaries. LAGERS was created and is governed by statute, section RSMo 70.600-
70.755. As such, it is the system’s responsibility to administer the law in accordance with the expressed
intent of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401a and it
is tax exempt.
The Missouri Local Government Employees Retirement System issued a publicly available financial report
that includes financial statements and required supplementary information. That report may be obtained
by writing to LAGERS, P.O. Box 1665, Jefferson City, MO 65102 or by calling 1-800-447-4334.

Funding Status
Taney County’s full-time employees do not contribute to the pension plan. The political subdivision is
required to contribute at an actuarially determined rate; the current rate is 12.0% (general), and 12.8%
(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 $ 1,172,593
Interest on net pension obligation -
Adjustment to annual required contribution -
Annual pension cost 1,172,593
Actual contributions 1,172,593
Increase (decrease) in NPO -
NPO beginning of year -
NPO end of year $ -

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 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

NOTE E – PENSION PLAN – LAGERS (continued)

The annual required contribution (ARC) was determined as part of the February 29, 2009, and February
28, 2010, 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 3.5% 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 105% of the
1994 Group Annuity Mortality table set back 0 years for men and set back 0 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, 2009, was 20 years for the General division and 24 years for the Police division. The amortization
period at February 28, 2010, was 12 years for the General division and 12 years for the Police division.

Three-Year Trend Information

Fiscal Annual Percentage Net
Year Pension of APC Pension
Ending Cost (APC) Contributed Obligation
6/30/09 $1,094,632 100% -
6/30/10 1,116,987 100% -
6/30/11 1,172,593 100% -

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 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

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

2004 Water Pollution Control Revenue Bonds:
In 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%.

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, 2011, are due as follows:

Year Ended Administrative
December 31, Principal Interest Fee Total
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
$ 10,910,000 $ 3,452,037 $ 530,753 $14,892,790

The following table is a summary of the changes in the long-term debt for the year ended December 31,
2011:

Balance Balance
December 31, New December 31,
2010 Obligations Retired 2011
2004 SRF Revenue Bonds Payable $ 11,710,000 $ - $ 800,000 $ 10,910,000

-29-
 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
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, 2011, are as follows:

Year Ended
December 31,
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 20,440,421
LESS AMOUNT REPRESENTING INTEREST (4,620,420)
PRINCIPAL BALANCE, DECEMBER 31, 2011 $ 15,820,001

-30-
 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

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, 2011:

Balance Balance
December 31, December 31,
2010 2011
Additions Retirements
2006 Certificates of
$ 16,595,000 $ - $ 775,000 $ 15,820,000
Participation
Compensated 104,611 - 9,278 95,333
absences
$ 16,699,611 $ - $ 784,278 $ 15,915,333

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, 2011, only $15,590,000 of these bonds has been issued.

-31-
 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

NOTE R – CAPITAL ASSETS – TANEY COUNTY REGIONAL SEWER DISTRICT

Capital asset activity for the year ended December 31, 2011, was as follows:

Balance Balance
December 31, December 31,
2010 2011
Additions Deletions
Business-Type Activities
Sewer
Nondepreciable capital
assets:
Land $ 106,576 $ - $ - $ 106,576
Contruction in progress 1,565,482 222,106 1,335,357 452,231
Total Nondepreciable Capital
1,672,058 $ 222,106 $ 1,335,357 558,807
Assets
Depreciable capital assets:
Sewer System 59,737,196 $ 1,582,159 $ - 61,319,355
Equipment 252,090 - - 252,090
59,989,286 $ 1,582,159 $ - 61,571,445

Less accumulated
depreciation

Sewer System 8,915,827 $1,997,484 $ - 10,913,311
Equipment 158,389 17,406 - 175,795
9,074,216 $ 2,014,890 $ - 11,089,106
Total Depreciable Capital 50,915,070 50,482,339
Assets, net
Total Capital Assets -
Business-Type Activities, net $ 52,587,128 $ 51,041,146

-32-
 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

NOTE S – INTERFUND TRANSFERS

Interfund transfers for the year ended December 31, 2011, consisted of the following:

Transfers
In (Out)
General Fund $ 582,636
Road and Bridge Trust Fund (2,230,883)
Road and Bridge Fund 1,986,983
Assessment Fund (4,450)
Tax Maintenance Fund (100,000)
E-911 Fund (241,736)
Recorder User Fee Fund (54,104)
Employee Benefits Fund 73,332
Transfer Station Fund (11,778)
$ -

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, 2011, the Reserve Account balance was $1,964,665.

NOTE U – ARBITRAGE PAYABLE – TANEY COUNTY REGIONAL SEWER DISTRICT

Under certain provisions of the Federal Tax Code and the 2004 State of Missouri Revolving Fund
Sewerage System Revenue Bond ordinance, the District is required to rebate arbitrage earnings of tax-
exempt debt to the federal government every five years as long as the bonds remain outstanding. Arbitrage
earnings occur when the District invests proceeds from its low-interest, tax-exempt debt issue into
securities with a higher interest yield. The District had arbitrage earnings during 2011, which reduced
interest income and resulted in a long-term liability of $61,683 in the Sewer Fund.

-33-
 TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2011

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 $57,517, Rosetta Construction, LLC in the amount of $57,175, and
Great River Associates in the amount of $132,199 as of December 31, 2011.

-34-
REQUIRED SUPPLEMENTARY INFORMATION

-35-
-36-
 Taney County, Missouri
Required Supplementary Information
Schedules of Funding Progress
Year Ended December 31, 2011

Missouri Local Government Employees Retirement System

(a) (b) (b-a) (a/b) (c ) [(b-a)/c]

Unfunded
Entry Age (Assets in UAL as a
Actuarial Actuarial Excess of) Percentage
Fiscal Actuarial Valuation Value of Accrued Accrued Funded Annual Covered of Covered
Year Date Assets Liability Liability (UAL) Ratio payroll payroll

2009 February 28, 2009 $ 8,637,078 $ 12,210,193 $ 3,573,115 71% $ 10,162,602 35
2010 February 28, 2010 $ 10,270,272 $ 13,317,256 $ 3,046,984 77% $ 9,950,757 31
2011 February 28, 2011 $ 11,600,854 $ 14,517,186 $ 2,916,332 80% $ 9,600,841 30

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.

See accompanying independent auditors' report.

-37-
 TANEY COUNTY, MISSOURI
STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31, 2011

Variance with
Final Budget -
Budgeted Amounts Positive
Actual
Original Final Amounts (Negative)
REVENUES COLLECTED:

Taxes 7,599,611 7,599,611 8,587,668 988,057

Licenses and Permits 70,500 70,500 71,173 673
Intergovernmental Revenues 337,300 337,300 711,995 374,695
Fees and Charges 2,885,350 2,885,350 3,299,456 414,106
Miscellaneous 200,600 200,600 283,002 82,402
TOTAL REVENUES COLLECTED 11,093,361 11,093,361 12,953,294 1,859,933

EXPENDITURES PAID:
General Government
University Extention 47,404 47,404 47,136 (268)
Collector of Revenue 236,033 236,033 227,313 (8,720)
Treasurer 84,830 84,830 85,051 221
Recorder of Deeds 292,000 292,000 229,897 (62,103)
County Commission 532,558 532,558 429,462 (103,096)
Employee Fringe Benefits 1,992,488 1,992,488 1,933,900 (58,588)
Information Technology 424,438 424,438 396,988 (27,450)
Planning and Zoning 333,403 333,403 189,728 (143,675)
Election and Voter Registration 57,770 57,770 53,025 (4,745)
County Clerk 122,131 122,131 125,691 3,560
Auditor 144,522 144,522 140,110 (4,412)
Building and Grounds 816,872 816,872 955,007 138,135
5,084,449 5,084,449 4,813,308 (271,141)
Judicial
Court Administration 42,750 42,750 45,406 2,656
Circuit Clerk 100,200 100,200 102,724 2,524
Circuit Judge 55,000 55,000 56,084 1,084
Coroner 44,130 44,130 52,907 8,777
Court Reporter 2,112 2,112 5,135 3,023
Public Administrator 81,398 81,398 91,499 10,101
Juvenile 132,224 132,224 128,898 (3,326)
Prosecuting Attorney 437,750 437,750 492,610 54,860
895,564 895,564 975,263 79,699
Public Safety
Sheriff 1,797,851 1,797,851 1,850,794 52,943
Jail 1,143,866 1,143,866 1,195,661 51,795
Animal Control 180,895 180,895 180,895 -
Emergency Management 167,590 167,590 96,798 (70,792)
3,290,202 3,290,202 3,324,148 33,946

Other 9,539,414 9,539,414 1,945,828 (7,593,586)
Public Works
Sewer 322,368 322,368 359,034 36,666
Airport
Airport 656,542 656,542 615,348 (41,194)
Debt Service
Principal and Interest 1,446,381 1,446,381 1,434,075 (12,306)

TOTAL EXPENDITURES PAID 21,234,920 21,234,920 13,467,004 (7,767,916)

Excess (Deficit) of Revenues Collected over
Expenditures Paid (10,141,559) (10,141,559) (513,710) 9,627,849

OTHER FINANCING SOURCES (USES)
Operating transfers in (out)
Transfers in 1,277,553 1,277,553 1,000,159 (277,394)
Transfers out (302,037) (302,037) (45,000) 257,037

TOTAL OTHER FINANCING SOURCES (USES) 975,516 975,516 955,159 (20,357)

Excess (Deficit) of Revenues Collected Over
Expenditures Paid and Other Sources (Uses) (9,166,043) (9,166,043) 441,449 9,607,492

Fund Balance, beginning of year, restated 9,676,979

Fund Balance, end of year 10,118,428

See accompanying independent auditors' report.

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 TANEY COUNTY, MISSOURI
STATEMENT OF REVENUES COLLECTED, EXPENDITURES PAID AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ROAD AND BRIDGE FUND
YEAR ENDED DECEMBER 31, 2011

Variance with
Final Budget -
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES COLLECTED
Taxes $ 909,000 $ 909,000 $ 1,194,531 $ 285,531
Intergovernmental 82,500 82,500 72,139 (10,361)
Miscellaneous 43,150 43,150 39,597 (3,553)

TOTAL REVENUES COLLECTED 1,034,650 1,034,650 1,306,267 271,617

EXPENDITURES:
Roads and bridges 2,574,460 2,574,460 2,020,738 (553,722)

TOTAL EXPENDITURES PAID 2,574,460 2,574,460 2,020,738 (553,722)

REVENUES OVER (UNDER) EXPENDITURES (1,539,810) (1,539,810) (714,471) 825,339

OTHER FINANCING SOURCES (USES):
Transfers In 2,000,000 2,230,883 230,883
Transfers Out - (575,040) (243,900) 331,140

Total other financing sources (uses) - 1,424,960 1,986,983 562,023

NET CHANGE IN FUND BALANCE $ (1,539,810) $ (114,850) 1,272,512 $ 1,387,362

FUND BALANCE, beginning of year 972,332

FUND BALANCE, end of year $ 2,244,844

See accompanying independent auditors' report.

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 TANEY COUNTY, MISSOURI
SCHEDULE OF REVENUES COLLECTED, EXPENDITURES PAID AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
ROAD AND BRIDGE TRUST FUND
YEAR ENDED DECEMBER 31, 2011

Variance with
Final Budget -
Budgeted Amounts Positive
Original Final Actual Amounts (Negative)
REVENUES COLLECTED
Taxes $ 6,500,000 $ 6,500,000 $ 6,763,047 $ 263,047
Intergovernmental - - 189,764 189,764
Other Receipts 120,000 120,000 84,164 (35,836)

TOTAL REVENUES COLLECTED 6,620,000 6,620,000 7,036,975 416,975

EXPENDITURES:
Highway and Roads 5,275,836 5,275,836 4,666,676 609,160

TOTAL EXPENDITURES PAID 5,275,836 5,275,836 4,666,676 609,160

REVENUES OVER (UNDER) EXPENDITURES 1,344,164 1,344,164 2,370,299 1,026,135

OTHER FINANCING SOURCES (USES):
Transfers In - - 3,485 3,485
Transfers Out (2,000,000) (2,000,000) (2,000,000) -

Total other financing sources (uses) (2,000,000) (2,000,000) (1,996,515) 3,485

NET CHANGE IN FUND BALANCE $ (655,836) $ (655,836) 373,784 $ 1,029,620

FUND BALANCE, beginning of year 4,978,521

FUND BALANCE, end of year $ 5,352,305

See accompanying independent auditors' report.

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OTHER FINANCIAL INFORMATION

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-42-
 TANEY COUNTY, MISSOURI
COMBINING SCHEDULE OF ASSETS, LIABILITIES
AND FUND BALANCES ARISING FROM MODIFIED CASH TRANSACTIONS
NON-MAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2011

LOCAL LAW
ELECTION INMATE EMERGENCY ENFORCEMENT PROSECUTOR E-911
ASSESSMENT SERVICES SECURITY PLANNING TRAINING TRAINING TELEPHONE
FUND FUND FUND COMMISSION FUND FUND FUND
ASSETS

Cash and investments $ 87,617 $ 27,377 $ 3,232 $ 9,882 $ 9,795 $ 4,906 $ 526,100

Total assets $ 87,617 $ 27,377 $ 3,232 $ 9,882 $ 9,795 $ 4,906 $ 526,100

LIABILITIES AND FUND BALANCES

Liabilities:
Due to other Funds $ - $ - $ - $ - $ - $ - $ -

Total liabilities - - - - - - -

Fund balances

Unreserved:
Special revenue funds 87,617 27,377 3,232 9,882 9,795 4,906 526,100

Total fund balances 87,617 27,377 3,232 9,882 9,795 4,906 526,100

Total liabilities and fund balances $ 87,617 $ 27,377 $ 3,232 $ 9,882 $ 9,795 $ 4,906 $ 526,100

See accompanying independent auditors' report.

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 TANEY COUNTY, MISSOURI
COMBINING SCHEDULE OF ASSETS, LIABILITIES
AND FUND BALANCES ARISING FROM MODIFIED CASH TRANSACTIONS
NON-MAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2011

SHERIFF PROSECUTOR PROSECUTOR
CIVIL TAX BAD RECORDER DELINQUENT
FEES MAINTENANCE CHECK USER FEE TAX
FUND FUND FUND FUND FUND
ASSETS

Cash and investments $ 182,911 $ 251,178 $ 191,138 $ 376,700 $ 106,471

Total assets $ 182,911 $ 251,178 $ 191,138 $ 376,700 $ 106,471

LIABILITIES AND FUND BALANCES

Liabilities:
Due to other Funds $ - $ - $ - $ - $ -

Total liabilities - - - - -

Fund balances

Unreserved:
Special revenue funds 182,911 251,178 191,138 376,700 106,471

Total fund balances 182,911 251,178 191,138 376,700 106,471

Total liabilities and fund balances $ 182,911 $ 251,178 $ 191,138 $ 376,700 $ 106,471

See accompanying independent auditors' report.

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 TANEY COUNTY, MISSOURI
COMBINING SCHEDULE OF ASSETS, LIABILITIES
AND FUND BALANCES ARISING FROM MODIFIED CASH TRANSACTIONS
NON-MAJOR GOVERNMENTAL FUNDS
DECEMBER 31, 2011

TOTAL
DRUG SHERIFF VEST LAW DOMESTIC NON-MAJOR
FORFEITURE REVOLVING GRANT LIBRARY VIOLENCE GOVERNMENTAL
FUND FUND FUND FUND FUND FUNDS
ASSETS

Cash and investments $ 34,954 $ 57,519 $ 2,887 $ 42,760 $ 9,897 $ 1,925,324

Total assets $ 34,954 $ 57,519 $ 2,887 $ 42,760 $ 9,897 $ 1,925,324

LIABILITIES AND FUND BALANCES

Liabilities:
Due to other Funds $ - $ - $ - $ - $ - $ -

Total liabilities - - - - - -

Fund balances

Unreserved:
Special revenue funds 34,954 57,519 2,887 42,760 9,897 1,925,324

Total fund balances 34,954 57,519 2,887 42,760 9,897 1,925,324

Total liabilities and fund balances $ 34,954 $ 57,519 $ 2,887 $ 42,760 $ 9,897 $ 1,925,324

See accompanying independent auditors' report.

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 TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2011

LOCAL LAW
ELECTION INMATE EMERGENCY ENFORCEMENT PROSECUTOR
ASSESSMENT SERVICES SECURITY PLANNING TRAINING TRAINING
FUND FUND FUND COMMISSION FUND FUND
REVENUES:
Taxes $ - $ - $ - $ - $ - $ -
Fees and fines 154,287 - 3,215 - 6,612 1,131
Intergovernmental 456,481 49,496 - 7,633 - -
Miscellaneous 3,575 401 17 167 131 70
Total revenues 614,343 49,897 3,232 7,800 6,743 1,201

EXPENDITURES:
Current:
General government - 30,199 - - - -
Tax administration 547,799 - - - - -
Public safety and judicial - - - 5,400 6,177 1,039
Debt service - - - - - -
Total expenditures 547,799 30,199 - 5,400 6,177 1,039
Excess (deficiency) of revenues over
expenditures 66,544 19,698 3,232 2,400 566 162

OTHER FINANCING SOURCES (USES):
Transfers in - - - - - -
Transfers out (4,450) - - - - -
Total other financing sources (uses) (4,450) - - - - -

Net change in fund balances 62,094 19,698 3,232 2,400 566 162

Fund balance - beginning 25,523 7,679 - 7,482 9,229 4,744

Fund balances - ending $ 87,617 $ 27,377 $ 3,232 $ 9,882 $ 9,795 $ 4,906

See accompanying independent auditors' report.

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 TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2011

SHERIFF PROSECUTOR PROSECUTOR
E-911 CIVIL TAX BAD RECORDER DELINQUENT
TELEPHONE FEES MAINTENANCE CHECK USER FEE TAX
FUND FUND FUND FUND FUND FUND
REVENUES:
Taxes $ - $ - $ - $ - $ - $ -
Fees and fines 550,428 51,405 171,570 30,736 206,663 15,976
Intergovernmental - - - - - -
Miscellaneous 8,180 4,020 3,192 3,203 6,010 1,418
Total revenues 558,608 55,425 174,762 33,939 212,673 17,394

EXPENDITURES:
Current:
General government - - - - 180,531 -
Tax administration - - 25,972 - - -
Public safety and judicial 424,048 49,591 - 56,046 - 733
Debt service - - - - - -
Total expenditures 424,048 49,591 25,972 56,046 180,531 733
Excess (deficiency) of revenues over
expenditures 134,560 5,834 148,790 (22,107) 32,142 16,661

OTHER FINANCING SOURCES (USES):
Transfers in - - - - - -
Transfers out (241,736) - (100,000) - (54,104) -
Total other financing sources (uses) (241,736) - (100,000) - (54,104) -

Net change in fund balances (107,176) 5,834 48,790 (22,107) (21,962) 16,661

Fund balance - beginning 633,276 177,077 202,388 213,245 398,662 89,810

Fund balances - ending $ 526,100 $ 182,911 $ 251,178 $ 191,138 $ 376,700 $ 106,471

See accompanying independent auditors' report.

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 TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE -
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2011

TOTAL
DRUG SHERIFF VEST LAW DOMESTIC NON-MAJOR
FORFEITURE REVOLVING GRANT LIBRARY VIOLENCE GOVERNMENTAL
FUND FUND FUND FUND FUND FUNDS
REVENUES:
Taxes $ - $ - $ - $ - $ - $ -
Fees and fines - 27,256 - - 8,851 1,228,130
Intergovernmental 5,842 - 2,006 15,523 - 536,981
Miscellaneous 493 869 27 354 76 32,203
Total revenues 6,335 28,125 2,033 15,877 8,927 1,797,314

EXPENDITURES:
Current:
General government - - - - - 210,730
Tax administration - - - - - 573,771
Public safety and judicial 3,567 28,055 1,011 18,258 8,725 602,650
Debt service - - - - - -
Total expenditures 3,567 28,055 1,011 18,258 8,725 1,387,151
Excess (deficiency) of revenues over
expenditures 2,768 70 1,022 (2,381) 202 410,163

OTHER FINANCING SOURCES (USES):
Transfers in - - - - - -
Transfers out - - - - - (400,290)
Total other financing sources (uses) - - - - - (400,290)

Net change in fund balances 2,768 70 1,022 (2,381) 202 9,873

Fund balance - beginning 32,186 57,449 1,865 45,141 9,695 1,915,451

Fund balances - ending $ 34,954 $ 57,519 $ 2,887 $ 42,760 $ 9,897 $ 1,925,324

See accompanying independent auditors' report.

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 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,
each major fund, and the aggregate remaining fund information of Taney County, Missouri as of and for the
year ended December 31, 2011, which collectively comprise Taney County, Missouri’s basic financial
statements and have issued our report thereon dated September 17, 2012. In our report, our opinion was
modified because the Primary Government of the County 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 first
paragraph of this section 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, we identified a certain deficiency in internal control over financial reporting
that we consider to be a material weakness.

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 to be a material weakness. It is identified as item 11-1.

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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.

We noted certain other matters that we have reported to management of Taney County, Missouri in a separate
letter dated September 17, 2012.

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.

Hurlbert CPA, LLC
September 17, 2012

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 Taney County, Missouri
Summary of Findings
Year Ended December 31, 2011

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
Auditors’ Report on Internal Control over Financial Reporting and 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.

B. Findings- Financial Statement Audit

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 on all areas.

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.

Recommendations: 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 the segregation of incompatible
duties and the County does not have the resources to hire additional accounting personnel.

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