2013 Audit Report

TANEY COUNTY, MISSOURI

BASIC FINANCIAL STATEMENTS

Year Ended December 31, 2013
 TABLE OF CONTENTS

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

MANAGEMENT’S DISCUSSION AND ANALYSIS ....................................................................................... 8

BASIC FINANCIAL STATEMENTS

Statement of Net Position – Modified Cash Basis .......................................................................................... 14

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

Balance Sheet – Governmental Funds – Modified Cash Basis....................................................................... 17

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

Statement of Net Position – Proprietary Fund – Modified Cash Basis........................................................... 19

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

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

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

Notes to Basic Financial Statements ............................................................................................................... 25

SUPPLEMENTARY INFORMATION

Schedule of Funding Progress ........................................................................................................................ 52

Budgetary Comparison Schedule – General Fund – Modified Cash Basis .................................................... 54

Budgetary Comparison Schedule – Road and Bridge Trust Fund –
Modified Cash Basis ................................................................................................................................. 56

Budgetary Comparison Schedule – Law Enforcement Sales Tax Fund –
Modified Cash Basis ................................................................................................................................. 57

Budgetary Comparison Schedule – County Sewer Sales Tax Fund –
Modified Cash Basis ................................................................................................................................. 58

Note to Budgetary Comparison Schedules ..................................................................................................... 59

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 TABLE OF CONTENTS

OTHER FINANCIAL INFORMATION

Combining Statement of Assets and Fund Balances – Non-Major
Special Revenue Funds – Modified Cash Basis ....................................................................................... 61

Combining Statement of Receipts, Disbursements, and Changes in Fund
Balance – Non-Major Special Revenue Funds – Modified Cash Basis.................................................... 63

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 .......................................... 65

Schedule of Findings and Responses .............................................................................................................. 67

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 C E R T I F I E D P U B L I C A C C O U N T A N T S A N D B U S I N E S S A D V I S O R S

INDEPENDENT AUDITORS’ REPORT

Taney County Commission
Taney County
Forsyth, Missouri

Report on Financial Statements

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, 2013, and the related notes
to the financial statements, which collectively comprise the County’s basic financial statements as listed in the
table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance
with modified cash basis of accounting described in Note A; this includes determining that the modified cash
basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances.
Management is also responsible for the design, implementation, and maintenance of internal control relevant to
the preparation and fair presentation of the financial statements that are free from material misstatement,
whether due to fraud or error.

Auditors’ Responsibility

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 the Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion of the effectiveness of the County’s internal control.

3828 South Avenue • Springfield, Missouri 65807 • 417-882-0904 • fax 417-882-4343
500 West Main Street, Suite 200 • Branson, Missouri 65616 • 417-334-2987 • fax 417-336-3403

www.kpmcpa.com
Member CPA Associates International, Inc., with offices in principal U.S. and International cities. 4
Taney County Commission
Taney County
Forsyth, Missouri

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
modified cash basis financial position of the governmental activities, business-type activities, the aggregate
discretely presented component units, each major fund and the aggregate remaining fund information, as of
December 31, 2013, and the respective changes in modified cash basis financial position and cash flows thereof
where applicable, for the year then ended in accordance with the basis of accounting described in Note A.

Basis of Accounting

As described in Note A, Taney 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. Our opinion is not modified with respect to this matter.

Disclaimer of Opinion on Supplementary Information

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 Management’s Discussion and Analysis,
Schedule of Funding Progress, and budgetary comparison information, which are the responsibility of
management, are presented for purposes of additional analysis and are not required parts of the basic financial
statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on it.

Other Information

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 Nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic financial
statements.

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Taney County Commission
Taney County
Forsyth, Missouri

The Combining Nonmajor fund financial statements are the responsibility of management and were derived
from and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the
basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the Combining Nonmajor fund financial
statements are fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 20, 2014, on our
consideration of Taney County’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering Taney County’s internal control over financial reporting and compliance.

KPM CPAs, PC
June 20, 2014

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MANAGEMENT’S DISCUSSION AND ANALYSIS
 TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013

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, 2013, 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 position of the County decreased by $3,347,624.
 The fund balance for the General Fund increased by $27,214. Using the modified cash basis
does not take into consideration capital improvements.
 The fund balance for the Road and Bridge Trust Fund increased by $1,074,625.
 The fund balance for the Law Enforcement Sales Tax Fund increased by $82,160.
 A major reason for the overall decrease is the advance bond payment that was made in December
from the sewer fund. Because of the timing, that is not reflected in a reduction of the bond debt
until January 1.

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 Position 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, 2013

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 billed or services provided not yet collected) and liabilities and their related expenses (such
as accounts payable and expenses 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 Position and the Statement of Activities

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 Position 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 position and changes in it. Over time, increases and decreases in the
County’s net position are one indicator of whether its financial health is improving or deteriorating. However,
the reader will need to consider other non-financial factors, 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, 2013

Fund Financial Statements

The fund financial statements 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.

FINANCIAL ANALYSIS OF THE COUNTY AS A WHOLE

Net Position – Modified Cash Basis

December 31,
2013 2012
ASSETS
Cash and investments $ 47,600,021 $ 50,947,645
TOTAL ASSETS $ 47,600,021 $ 50,947,645
NET POSITION
Restricted $ 36,975,930 $ 40,669,685
Unrestricted 10,624,091 10,277,960
TOTAL NET POSITION $ 47,600,021 $ 50,947,645

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2013

Changes in Net Position – Modified Cash Basis

Year Ended December 31,
2013 2012
RECEIPTS
Program Receipts
Charges for services $ 5,853,442 $ 1,035,813
Operating grants and contributions 162,759 7,870,848
Capital grants and contributions 924,838 383,170
General Receipts
Sales tax receipts 22,436,674 22,347,121
Motor vehicle sales tax 1,213,119 1,198,234
Other taxes 670,151 715,521
Interest 368,453 464,236
Other receipts 942,160 1,229,910
TOTAL RECEIPTS 32,571,596 35,244,853
DISBURSEMENTS
General government 5,383,706 5,518,038
Judicial 1,238,280 2,483,905
Public safety 4,230,382 6,185,658
Public works 50,162 103,441
Highway and roads 7,409,033 6,940,467
Airport 533,807 539,592
Sewer 12,820,798 4,962,151
Debt service 1,647,219 1,722,913
Other 1,670,150 1,435,733
Transfer station 935,683 1,058,923
TOTAL DISBURSEMENTS 35,919,220 30,950,821
INCREASE (DECREASE) IN NET POSITION $ (3,347,624) $ 4,294,032

Overall receipts of the County decreased by $2,673,257 from the prior year. Tax revenues were up $59,068.
Overall disbursements of the County were up $4,968,399.

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2013

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 $27,214 for the year ended December 31, 2013.
 The Road and Bridge Trust Fund increased by $1,074,625, which increased the fund balance to
$10,410,417 as of December 31, 2013.
 The Law Enforcement Sales Tax Fund increased by $82,160, which increased the fund balance
to $82,160 as of December 31, 2013.
 County Sewer Sales Tax Fund decreased $4,557,384, which decreased the fund balance to
$25,209,601. This was a result of an advance bond payment, which will decrease the bond debt
and save the taxpayers interest money.

FINANCIAL ANALYSIS BUDGET VERSUS ACTUAL RESULTS – GENERAL FUND

Budget
Original Final Actual
RECEIPTS
Taxes $ 6,892,800 $ 6,892,800 $ 7,053,505
Commissions 652,527 652,527 692,586
Licenses and permits 70,500 70,500 71,062
Intergovernmental receipts 4,063,643 4,063,643 435,729
Fees and charges 2,787,250 2,787,250 2,745,899
Other 150,500 150,500 221,135
TOTAL RECEIPTS $ 14,617,220 $ 14,617,220 $ 11,219,916
DISBURSEMENTS
General government $ 4,504,265 $ 4,504,265 $ 4,407,695
Judicial 1,207,765 1,207,765 1,212,049
Public safety 3,626,874 3,626,874 3,608,861
Public works 81,100 81,100 50,162
Other 8,761,693 8,761,693 1,670,150
Airport 873,495 873,495 533,807
Debt service - - 1,075
TOTAL DISBURSEMENTS $ 19,055,192 $ 19,055,192 $ 11,483,799

The County has always budgeted so that if there is a need that arises they are covered without having to revisit
the budget process. Also, the flood buyout grant was budgeted for because we were unsure of when the
expenses and rvenues would occur.

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2013

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

The administration at the County are hoping for a return of the better economic times. It is common for our
economy to show some cyclical patterns, but the last slow down was more evident than previous ones. We are
seeing some economic activity that would indicate we may see an increase in tax revenues.

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 POSITION – MODIFIED CASH BASIS
December 31, 2013

Primary Government Component Units
Taney Develop- Dorgan- Combs-
Business- County Taney County mentally Weaver Redfern
Governmental Type Regional Health Disabled Housing Apartments
Activities Activities Total Sewer District Center Board Corporation Inc.
ASSETS
Cash and investments $ 46,946,644 $ 653,377 $ 47,600,021 $ 8,816,941 $ 1,293,260 $ 871,702 $ 61,374 $ 149,000
TOTAL ASSETS $ 46,946,644 $ 653,377 $ 47,600,021 $ 8,816,941 $ 1,293,260 $ 871,702 $ 61,374 $ 149,000
NET POSITION
Restricted $ 36,975,930 $ - $ 36,975,930 $ 7,045,754 $ - $ 132,500 $ 57,389 $ -
Unrestricted 9,970,714 653,377 10,624,091 1,771,187 1,293,260 739,202 3,985 149,000
TOTAL NET POSITION $ 46,946,644 $ 653,377 $ 47,600,021 $ 8,816,941 $ 1,293,260 $ 871,702 $ 61,374 $ 149,000

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES – MODIFIED CASH BASIS
Year Ended December 31, 2013
Primary Government
Net (Disbursements), Receipts
Program Receipts and Changes in Net Position
Charges Operating Capital Business-
for Grants and Grants and Governmental Type
Functions/Programs Disbursements Services Contributions Contributions Activities Activities Total
Primary Government
Governmental Activities
General government $ (5,383,706) $ 2,897,021 $ 21,700 $ 242,233 $ (2,222,752) $ - $ (2,222,752)
Judicial (1,238,280) 216,434 - - (1,021,846) - (1,021,846)
Public safety (4,230,382) 1,081,876 123,640 75,815 (2,949,051) - (2,949,051)
Public works (50,162) - - - (50,162) - (50,162)
Highway and roads (7,409,033) - 17,419 129,076 (7,262,538) - (7,262,538)
Airport (533,807) 531,212 - - (2,595) - (2,595)
Sewer (12,820,798) - - 477,714 (12,343,084) - (12,343,084)
Debt service (1,647,219) - - - (1,647,219) - (1,647,219)
Other (1,670,150) - - - (1,670,150) - (1,670,150)
TOTAL GOVERNMENTAL
ACTIVITIES (34,983,537) 4,726,543 162,759 924,838 (29,169,397) - (29,169,397)
Business-Type Activities
Transfer station (935,683) 1,126,899 - - - 191,216 191,216
TOTAL BUSINESS-TYPE
ACTIVITIES (935,683) 1,126,899 - - - 191,216 191,216
TOTAL PRIMARY GOVERNMENT $ (35,919,220) $ 5,853,442 $ 162,759 $ 924,838 (29,169,397) 191,216 (28,978,181)
Component Units
Taney County Regional Sewer District $ (5,807,557) $ 1,485,866 $ - $ 10,185,410
Taney County Health Center (3,376,932) 1,829,336 575,258 -
Developmentally Disabled Board (2,426,060) 721,146 - -
Dorgan-Weaver Housing Corp. (61,979) 67,909 - -
Combs-Redfern Apartments Inc. - - 149,000 -
TOTAL COMPONENT UNITS $ (61,979) $ 67,909 $ 149,000 $ -
General Receipts and Transfers:
Ad valorem taxes - - -
Sales taxes 22,436,674 - 22,436,674
Motor vehicle sales taxes and gas taxes 1,213,119 - 1,213,119
Other taxes 670,151 - 670,151
Interest 364,936 3,517 368,453
Other receipts 927,720 14,440 942,160
Transfers 18,931 (18,931) -
Total General Receipts and Transfers 25,631,531 (974) 25,630,557
Increase (Decrease) in Net Position (3,537,866) 190,242 (3,347,624)
Net Position, Beginning of year, as restated 50,484,510 463,135 50,947,645
Net Position, End of year $ 46,946,644 $ 653,377 $ 47,600,021

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES – MODIFIED CASH BASIS (continued)
Year Ended December 31, 2013
Componet Units
Net (Disbursements), Receipts and Changes in Net Position
Taney County Taney Develop- Dorgan- Combs-
Regional County mentally Weaver Redfern
Sewer Health Disabled Housing Apartments
District Center Board Corporation Inc.
Primary Government
Governmental Activities
General government
Judicial
Public safety
Public works
Highway and roads
Airport
Sewer
Debt service
Other
TOTAL GOVERNMENTAL ACTIVITIES
Business-Type Activities
Transfer station
TOTAL BUSINESS-TYPE ACTIVITIES
TOTAL PRIMARY GOVERNMENT
Component Units
Taney County Regional Sewer District $ 5,863,719 $ - $ - $ - $ -
Taney County Health Center - (972,338) - - -
Developmentally Disabled Board - - (1,704,914) - -
Dorgan-Weaver Housing Corp. - - - 5,930 -
Combs-Redfearn Apartments Inc. - - - - 149,000
TOTAL COMPONENT UNITS 5,863,719 (972,338) (1,704,914) 5,930 149,000
General Receipts and Transfers:
As valorem taxes - 1,377,808 1,138,239 - -
Sales taxes - - - - -
Motor vehicle sales taxes and gas taxes - - - - -
Other taxes - - - - -
Interest 8,059 8,539 1,736 94 -
Other receipts 65,253 5,312 21,114 203 -
Transfers - - - - -
Total General Receipts and Transfers 73,312 1,391,659 1,161,089 297 -
Increase (Decrease) in Net Position 5,937,031 419,321 (543,825) 6,227 149,000
Net Position, Beginning of year, as restated 2,879,910 873,939 1,415,527 55,147 -
Net Position, End of year $ 8,816,941 $ 1,293,260 $ 871,702 $ 61,374 $ 149,000

See accompanying notes.
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TANEY COUNTY, MISSOURI
BALANCE SHEET – GOVERNMENTAL FUNDS – MODIFIED CASH BASIS
December 31, 2013

Law County
Road and Enforcement Sewer Nonmajor Total
General Bridge Sales Tax Sales Tax Governmental Governmental
Fund Trust Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 9,842,039 $ 10,410,417 $ 82,160 $ 25,209,601 $ 1,402,427 $ 46,946,644
TOTAL ASSETS $ 9,842,039 $ 10,410,417 $ 82,160 $ 25,209,601 $ 1,402,427 $ 46,946,644
FUND BALANCES
Fund Balances
Restricted for:
Road and Bridge $ - $ 10,410,417 $ - $ - $ - $ 10,410,417
Public Safety - - 82,160 - 368,280 450,440
Sewer - - - 25,209,601 - 25,209,601
Elections - - - - 40,553 40,553
Recorder - - - - 474,933 474,933
Judicial - - - - 268,959 268,959
Tax maintenance - - - - 121,027 121,027
Assigned to:
Assessment Fund - - - - 128,675 128,675
Unassigned 9,842,039 - - - - 9,842,039
TOTAL FUND BALANCES $ 9,842,039 $ 10,410,417 $ 82,160 $ 25,209,601 $ 1,402,427 $ 46,946,644

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN FUND BALANCE –
GOVERNMENTAL FUNDS – MODIFIED CASH BASIS
Year Ended December 31, 2013

Law County
Road and Enforcement Sewer Nonmajor Total
General Bridge Sales Tax Sales Tax Governmental Governmental
Fund Trust Fund Fund Fund Funds Funds
RECEIPTS
Taxes $ 7,053,505 $ 8,151,956 $ 1,725,465 $ 6,903,074 $ 485,944 $ 24,319,944
Collector's commission 692,586 - - - - 692,586
Licenses and permits 71,062 - - - - 71,062
Intergovernmental receipts 435,729 146,495 - 477,714 27,659 1,087,597
Fees and charges 2,745,899 - - - 1,216,996 3,962,895
Other 221,135 161,376 2,839 882,626 24,680 1,292,656
TOTAL RECEIPTS 11,219,916 8,459,827 1,728,304 8,263,414 1,755,279 31,426,740
DISBURSEMENTS
General government 4,407,695 - - - 976,011 5,383,706
Judicial 1,212,049 - - - 26,231 1,238,280
Public safety 3,608,861 - - - 621,521 4,230,382
Public works 50,162 - - - - 50,162
Airport 533,807 - - - - 533,807
Other 1,670,150 - - - - 1,670,150
Highway and roads - 7,409,033 - - - 7,409,033
Sewer - - - 12,820,798 - 12,820,798
Debt service 1,075 - 1,646,144 - - 1,647,219
TOTAL DISBURSEMENTS 11,483,799 7,409,033 1,646,144 12,820,798 1,623,763 34,983,537
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (263,883) 1,050,794 82,160 (4,557,384) 131,516 (3,556,797)
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) 291,097 23,831 - - (295,997) 18,931
TOTAL OTHER FINANCING
SOURCES (USES) 291,097 23,831 - - (295,997) 18,931
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES
OVER DISBURSEMENTS
AND OTHER (USES) 27,214 1,074,625 82,160 (4,557,384) (164,481) (3,537,866)
FUND BALANCE, January 1, as restated 9,814,825 9,335,792 - 29,766,985 1,566,908 50,484,510
FUND BALANCE, December 31 $ 9,842,039 $ 10,410,417 $ 82,160 $ 25,209,601 $ 1,402,427 $ 46,946,644

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF NET POSITION – PROPRIETARY FUND – MODIFIED CASH BASIS
December 31, 2013

Enterprise
Fund
Transfer
Station Fund
ASSETS
Current Assets
Cash and cash equivalents $ 653,377
TOTAL ASSETS $ 653,377
Net Position
Unrestricted $ 653,377
TOTAL NET POSITION $ 653,377

See accompanying notes.

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TANEY COUNTY, MISSOURI
STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN NET POSITION – PROPRIETARY
FUND – MODIFIED CASH BASIS
Year Ended December 31, 2013

Enterprise
Fund
Transfer
Station Fund
OPERATING RECIEPTS
Charges for services $ 1,126,899
TOTAL OPERATING RECEIPTS 1,126,899
OPERATING DISBURSEMENTS
Insurance claims and disbursements 10,208
Salaries and employee benefits 231,100
Supplies 299,527
Telephone and utilities 3,121
Repair and maintenance 49,813
Landfill services 316,482
Other 25,432
TOTAL OPERATING DISBURSEMENTS 935,683
OPERATING INCOME 191,216
NONOPERATING RECEIPTS
Interest receipts 3,517
Other receipts 14,440
TOTAL NONOPERATING RECEIPTS 17,957
INCOME BEFORE OPERATING TRANSFERS 209,173
Operating transfers (out) (18,931)
NET INCOME 190,242
NET POSITION, January 1 463,135
NET POSITION, December 31 $ 653,377

See accompanying notes.

20
TANEY COUNTY, MISSOURI
STATEMENT OF CASH FLOWS – PROPRIETARY FUND – MODIFIED CASH BASIS
Year Ended December 31, 2013

Enterprise
Fund
Transfer
Station Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1,141,339
Cash paid to suppliers (704,583)
Cash paid to employees (231,100)
NET CASH PROVIDED BY
OPERATING ACTIVITIES 205,656
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 3,517
NET CASH PROVIDED BY
INVESTING ACTIVITIES 3,517
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers (to) other funds (18,931)
NET CASH (USED) BY NONCAPITAL
FINANCING ACTIVITIES (18,931)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 190,242
CASH AND CASH EQUIVALENTS, Beginning of year 463,135
CASH AND CASH EQUIVALENTS, End of year $ 653,377

RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income $ 191,216
Adjustments to reconcile operating income
to net cash provided by operating activities:
Other receipts 14,440
NET CASH PROVIDED BY
OPERATING ACTIVITIES $ 205,656

See accompanying notes.

21
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS
December 31, 2013

Sheriff's Sheriff's Sheriff's Cities Land Prosecuting
Office Office Office Sheriff Collector Financial Sales Unclaimed Attorney
Transport General Bond Commissary of Revenue Institution Surplus Fee Restitution
Fund Fund Fund Fund Fund Tax Fund Fund Fund Fund
ASSETS
Cash and investments $ 492 $ 10 $ 2 $ 123,413 $ 26,478,371 $ 24,482 $ 132,364 $ 15,079 $ 6,820
TOTAL ASSETS $ 492 $ 10 $ 2 $ 123,413 $ 26,478,371 $ 24,482 $ 132,364 $ 15,079 $ 6,820
LIABILITIES
Due to others $ - $ - $ 2 $ 123,413 $ - $ - $ - $ 15,079 $ 6,820
Due to other governments 492 10 - - 26,478,371 24,482 132,364 - -
TOTAL LIABILITIES $ 492 $ 10 $ 2 $ 123,413 $ 26,478,371 $ 24,482 $ 132,364 $ 15,079 $ 6,820

See accompanying notes.

22
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS (continued)
December 31, 2013

Protest
Fines and Western P&Z National Criminal Circuit DSS Recorder's Tax
Forfeitures Fire Bonds Forest Cost Clerk Supplemental User Fee Account
Fund Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 83,100 $ 633 $ 161,372 $ 211 $ 123,040 $ 518,307 $ 18 $ 174,483 $ 441,685
TOTAL ASSETS $ 83,100 $ 633 $ 161,372 $ 211 $ 123,040 $ 518,307 $ 18 $ 174,483 $ 441,685
LIABILITIES
Due to others $ - $ - $ 161,372 $ - $ - $ - $ - $ - $ 441,685
Due to other governments 83,100 633 - 211 123,040 518,307 18 174,483 -
TOTAL LIABILITIES $ 83,100 $ 633 $ - $ 211 $ 123,040 $ 518,307 $ 18 $ 174,483 $ 441,685

See accompanying notes.

23
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS (continued)
December 31, 2013

Prosecuting OTC
Attorney Juvenile Health Financial Senior Flood
Bad Check Restitution Center Handicapped School Institution Services Control
Fund Fund Fund Fund Fund Tax Fund Fund Fund Total
ASSETS
Cash and investments $ 1,252 $ 1 $ 859 $ 558 $ 25,356 $ 303 651,527 $ 33 $ 28,963,771
TOTAL ASSETS $ 1,252 $ 1 $ 859 $ 558 $ 25,356 $ 303 $ 651,527 $ 33 $ 28,963,771
LIABILITIES
Due to others $ 1,252 $ 1 $ - $ - $ - $ - $ - $ - $ 749,624
Due to other governments - - 859 558 25,356 303 651,527 33 28,214,147
TOTAL LIABILITIES $ 1,252 $ 1 $ 859 $ 558 $ 25,356 $ 303 $ 651,527 $ 33 $ 28,963,771

See accompanying notes.

24
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

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.

25
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

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. 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) 546-7221.

Taney County Board for the Developmentally Disabled d.b.a. Developmental Connections

The Developmentally Disabled Board d.b.a. Developmental Connections, 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 d.b.a. Developmental Connections 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 d.b.a. Developmental Connections 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 d.b.a. Developmental Connections.

Combs-Redfern Apartments, Inc.

The Combs-Redfern Apartments, Inc., which is governed by an appointed Board of Directors, provides housing
to developmentally disabled residents of Taney County. The Combs-Redfern Apartments, Inc. 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 d.b.a. Developmental Connections.

26
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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.

In the government-wide Statement of Net Position, 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.

Law Enforcement Sales Tax Fund: The Law Enforcement Sales Tax Fund of the County is used
to account for resources restricted for law enforcement disbursements.

County Sewer Sales Tax Fund: The County Sewer Sales Tax Fund of the County is used to
account for resources restricted for sewer related disbursements.

27
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The County also reports the following fund types:

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:

Transfer Station Fund: The Transfer Station Fund of the County is used to account for the
County’s waste collection operations.

Basis of Accounting

The government-wide Statement of Net Position and Statement of Activities and the fund financial statements
are presented using the modified cash basis of accounting. This basis recognizes assets, net position/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 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.

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.

28
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Fund Balance Classification

In the fund financial statements, governmental funds report aggregate amounts for five classifications of fund
balances based on constraints imposed on the use of these resources as follows:

Nonspendable fund balance – This classification includes amounts that cannot be spent because
they are either a) not in spendable form or b) legally or contractually required to be maintained
intact.

Restricted fund balance – This classification reflects the constraints imposed on resources either
a) externally by creditors, grantors, contributors, or laws or regulations of other governments; or
b) imposed by law through constitutional provisions or enabling legislation.

Committed fund balance – These amounts can only be used for specific purposes pursuant to
constraints imposed by formal resolutions of the County Commission – the government’s highest
level of decision making authority. Those committed amounts cannot be used for any other
purpose unless the Commission removes the specified use by taking the same type of action
imposing the commitment.

Assigned fund balance – This classification reflects the amounts constrained by the County’s
“intent” to be used for specific purposes, but are neither restricted nor committed. Assigned fund
balances include all remaining amounts (except negative balances) that are reported in the
governmental funds, other than the General Fund, that are not classified as nonspendable and are
neither restricted nor committed.

Unassigned fund balance – This fund balance is the residual classification for the General Fund.
It is also used to report negative fund balances in other governmental funds.

In circumstances when a disbursement is made for a purpose for which amounts are available in multiple fund
balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned.

29
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Net Position

In the government-wide financial statements, equity is displayed, when applicable, in two components as
follows:

Restricted – This consists of net position that is legally restricted by outside parties or by law
through constitutional provisions or enabling legislation.

Unrestricted – This consists of net position that does not meet the definition of restricted.

When an expense is incurred for purposes for which both restricted and unrestricted net position are available,
the County first applies restricted net position.

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 as of December 31, 2013,
was $218,885.

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.

30
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

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’s portion of
this pool is displayed on the Statement of Net Position 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, 2013, all bank balances on deposit are entirely
insured or collateralized with securities.

County Investments

Statutes authorize the County to invest in investments that are:

a. Obligations of the U.S. government, the State of Missouri, this county;
b. In bonds, bills, notes, debentures or other obligations guaranteed as to payment of principal and
interest by the government of the United States or any agency or instrumentality thereof,or the
State of Missouri;
c. In revenue bonds of the County;
d. In certificates of deposit; savings accounts as defined in Chapter 369, Revised Missouri Statutes;
or in interest-bearing time deposits when such funds are held in U.S. banks; state banks; savings
and loan associations operating under Chapter 369, Revised Missouri Statutes; or savings and
loan associations authorized by the U.S. governmetn so long as such deposits, savings accounts
and interest-bearing deposits are secured by one or more of the types of securities described in
subparagraphs (a), (b) or (c) of this section;
e. Banker’s acceptances issued by domestic commercial banks possessing the highest rating issued
by a nationally recognized rating agency;
f. Commercial paper issued by domestic corporations that has received the highest rating issued by
a nationally recognized rating agency; or
g. Investments permitted by the County that are authorized in the model investment policy prepared
by the State of Missouri for political subdivisions.

31
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE B – CASH AND INVESTMENTS (continued)

The County’s investments at December 31, 2013, are as follows:

Investment Type Maturity Carrying Value Fair Value
Taney County
Certificates of Deposit 5/9/2014 - 12/13/2016 $ 34,360,134 $ 34,360,134
FHLMC one time call 8/8/2016 500,000 500,190
FHLB Bonds US Domestic 6/10/2016 - 8/8/2016 1,028,392 1,018,880
Fannie Mae Notes - US Domestic 3/15/2016 - 9/6/2016 1,525,523 1,519,475
Freddie MAC Global Notes 3/5/2015 1,997,100 2,001,666
Federal Farm Credit Bank 7/8/2016 1,000,000 1,000,130
$ 40,411,149 $ 40,400,475

Custodial Credit Risk

Custodial credit risk is the risk that, in the event of the failure of the counter party, the County will not be able
to recover the value of its investments or collateral securities that are in possession of an outside party.
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, 2013, all Certificates of
Deposit are entirely insured or collateralized with securities.

Credit Risk

Credit risk is the risk that the County will not recover its investments due to the inability of the counter party to
fulfill their obligations. The County also holds investments in several U.S. Government agency obligations.
These investments are stated at historical cost and are rated AA+ by Standard and Poor’s.

Interest Rate Risk

Interest rate risk is the risk that the fair value of the County’s investments will decrease as a result of increase in
interest rates. The County will minimize the risk that the market value of fixed income securities in the
portfolio will fall due to changes in the general interest rates by structuring the investment portfolio so that fixed
income securities mature to meet cash requirements for ongoing operations and by investing operating funds
primarily in shorter term fixed income securities.

32
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE B – CASH AND INVESTMENTS (continued)

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, 2013, all bank
balances on deposit are entirely insured or collateralized.

The District’s investments at December 31, 2013, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 1/28/2015 $ 215,636

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, 2013, all Certificates of
Deposit are entirely insured or collateralized with securities. Certificates of deposit are held to maturity.

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

TANEY COUNTY HEALTH CENTER

State statutes require that the Center’s deposits be insured or collateralized in the name of the Center by the trust
department of a bank that does not hold the collateralized deposits. As of December 31, 2013, all bank balances
on deposit are entirely insured or collateralized.

The Center’s investments at December 31, 2013, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 7/3/2017 $ 255,781
Certificate of Deposit 4/1/2018 150,941
$ 406,722

33
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

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 Board’s deposits be collateralized in the name of the Center by the trust
department of a bank that does not hold the collateralized deposits. As of December 31, 2013, all certificates of
deposit were insured or collateralized with securities.

Interest Rate Risk

The Center holds investments until maturity to neutralize interest rate risk.

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, 2013, all bank balances
on deposit are entirely insured or collateralized.

Investments of the Board as of December 31, 2013, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 3/23/2014 $ 259,229
Certificate of Deposit 10/17/2014 252,746
$ 511,975

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, 2013, all Certificates of Deposit
were insured or collateralized with securities.

Interest Rate Risk

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

34
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

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, 2013,
significant amounts of grant disbursements have not been audited by grantor governments, but the County
believes that disallowed disbursements, if any, based on subsequent audits, will not have a material effect on
any of the individual government funds or the overall financial position of the County.

Legal Matters

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

NOTE D – PENSION PLAN – CERF

State of Missouri County Employees’ Retirement Fund

Plan Description

Taney County participates in the County Employees’ Retirement Fund (CERF), a cost-sharing multiple-
employer pension plan. CERF is a defined benefit pension plan which provides retirement and death benefits to
plan members and beneficiaries. CERF was created and is governed by state statute, RSMo 50.1000 to
50.1200. As such, it is the system’s responsibility to administer the law in accordance with the expressed intent
of the General Assembly. The plan is qualified under the Internal Revenue Code Section 401(a) 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, Plan
Administrator, 2121 Schotthill Woods Drive, Jefferson City, MO 65101.

35
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE D – PENSION PLAN – CERF (continued)

Funding Policy

Taney County’s full-time employees hired before February 25, 2002, are required by state statute to contribute
0% of annual payroll to the pension plan. Taney County’s full-time employees hired on or after February 25,
2002, are required by state statute to contribute 4% of annual covered payroll to the pension plan. 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 – PRIMARY GOVERNMENT

Plan Description

Taney County also 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 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 401(a) and it is tax exempt.

The Missouri Local Government Employees Retirement System issues 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

Full-time employees of Taney County do not contribute to the pension plan. The June 30th statutorily required
contribution rates are 16.1% (General) and 17.6% (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.

36
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE E – PENSION PLAN – LAGERS – PRIMARY GOVERNMENT (continued)

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 $ 1,259,800
Interest on net pension obligation -
Adjustment to annual required contribution -
Annual pension cost 1,259,800
Actual contributions 1,259,800
Increase (decrease) in NPO -
NPO beginning of year -
NPO end of year $ -

The annual required contribution (ARC) was determined as part of the February 28, 2011, and February 29,
2012, annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of
February 28, 2013, included: (a) a rate of return on the investment of present and future assets of 7.25% 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 75% of 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 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 28, 2011, was 15 years
for the General division and 15 years for the Police division. The amortization period at February 29, 2012, was
15 years for the General division and 15 years for the Police division.

Three-Year Trend Information

Year Annual Percentage Net
Ended Pension of APC Pension
June 30, Cost (APC) Contributed Obligation
2011 $ 1,172,593 100% $ -
2012 1,072,089 100% -
2013 1,259,800 100% -

37
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE E – PENSION PLAN – LAGERS (continued)

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

(b-a)
(b) Unfunded [(b-a)/c]
(a) Entry Age (Excess) (c) UAL as a
Actuarial Actuarial Actuarial Accrued (a/b) Annual Percentage
Valuation Value of Accrued Liability Funded Covered of Covered
Date Assets Liability (UAL) Ratio Payroll Payroll
2/28/2013 $ 13,720,946 $ 15,444,790 $ 1,723,844 89% $ 8,964,337 19%
2/28/2013# 13,720,946 19,759,054 6,038,108 69% 8,964,337 67%
# After benefit changes.

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.

NOTE F – PENSION PLAN – LAGERS – TANEY COUNTY REGIONAL SEWER DISTRICT

Taney County Regional Sewer District 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 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 401(a) and it is tax exempt.

The Missouri Local Government Employees Retirement System issues 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.

38
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE F – PENSION PLAN – LAGERS – TANEY COUNTY REGIONAL SEWER DISTRICT (continued)

Funding Status

Full-time employees of Taney County Regional Sewer District do not contribute to the pension plan. The June
30th statutorily required contribution rate is 12.2% (General) 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 $ 30,422
Interest on net pension obligation -
Adjustment to annual required contribution -
Annual pension cost 30,422
Actual contributions 30,422
Increase (decrease) in NPO -
NPO beginning of year -
NPO end of year $ -

The annual required contribution (ARC) was determined as part of the initial actuarial valuation using the entry
age actuarial cost method. The actuarial assumptions as of February 29, 2012, included: (a) a rate of return on
the investment of present and future assets of 7.25% 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 75% of 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 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 a closed
basis. The amortization period as of February 29, 2012, was 29 years for the General division.

39
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE F – PENSION PLAN – LAGERS – TANEY COUNTY REGIONAL SEWER DISTRICT (continued)

Three-Year Trend Information

Year Annual Percentage Net
Ended Pension of APC Pension
June 30, Cost (APC) Contributed Obligation
2012 $ 7,836 100.0% $ -
2013 30,422 100.0% -

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

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

2/28/2013 $ 31,630 $ 70,456 $ 38,456 45% $ 244,011 16%

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, 2011, annual actuarial valuations. For a complete description of
the actuarial assumptions used in the annual valuations, please contact the LAGERS office in Jefferson City.

NOTE G – 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.

40
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE G – ASSESSED VALUATION, TAX LEVY AND LEGAL DEBT MARGIN (continued)

The 2013 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 $ 827,598,655
Personal property 141,870,952
Railroad and utilities 32,738,231
$1,002,207,838
TAX LEVY
General Fund $ -

The legal debt margin at December 31, 2013, is computed as follows:

Constitutional debt limit $ 100,220,784
General obligation bonds payable -
LEGAL DEBT MARGIN $ 100,220,784

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 H – LONG-TERM DEBT – TANEY COUNTY REGIONAL SEWER DISTRICT

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%. 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, 2013, are due as follows:

41
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

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

Year Ended Administrative
December 31, Principal Interest Fee Total
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
$ 9,300,000 $ 2,474,772 $ 380,671 $ 12,155,443

The following table is a summary of the changes in the long-term debt for the year ended December 31, 2013:

Balance Balance
December 31, New December 31, Current
2012 Obligations Retired 2013 Portion

2004 SRF Revenue Bonds Payable $ 10,110,000 $ - $ 810,000 $ 9,300,000 $ 820,000

NOTE I – 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.

42
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

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

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, 2013, are as follows:

Year Ended
December 31,
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 17,471,559
LESS AMOUNT REPRESENTING INTEREST (3,376,559)
PRINCIPAL BALANCE, DECEMBER 31, 2013 $ 14,095,000

The following schedule presents the changes in the long-term debt for the year ended December 31, 2013:

Balance Balance
December 31, December 31, Current
2012 Additions Retirements 2013 Portion

2006 Certificates of Participation $ 14,985,000 $ - $ 890,000 $ 14,095,000 $ 955,000
Compensated absences 210,892 7,993 - 218,885 -
$ 15,195,892 $ 7,993 $ 890,000 $ 14,313,885 $ 955,000

43
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

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

On July 1, 2008, the Health Department issued $850,000 in Certificates of Participation, Series 2008, to build
an addition to the existing building. The interest rate on the Certificates was 4.85% until July 1, 2013, and then
changed to 3.612%. This rate will be in effect until December 1, 2018. At that time, the interest rate will be
adjusted again based on market rates, for the remaining 5 years. Principal and interest payments are due
monthly. The Certificates of Participation outstanding at December 31, 2013, based on the current rate, are due
as follows:

Year Ended
December 31, Principal Interest Total
2014 $ 54,063 $ 21,403 $ 75,466
2015 56,076 19,390 75,466
2016 58,114 17,352 75,466
2017 60,329 15,137 75,466
2018 62,576 12,890 75,466
2019 64,906 10,560 75,466
2020 67,323 8,143 75,466
2021 69,831 5,635 75,466
2022 72,431 3,035 75,466
2023 43,465 515 43,980
$ 609,114 $ 114,060 $ 723,174

The following table is a summary of the changes in the long-term debt for the year ended December 31, 2013:

Balance Balance
December 31, December 31, Current
2012 Additions Retirements 2013 Portion
2008 Certificate of Participation $ 659,693 $ - $ 50,579 $ 609,114 $ 54,063
Compensated absences 91,032 940 - 91,972 -
$ 750,725 $ 940 $ 50,579 $ 701,086 $ 54,063

44
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE K – LOAN – BOARD FOR THE DEVELOPMENTALLY DISABLED

During the year ended December 31, 2008, 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.

The following is a schedule of payments under the loan:

Year Ended
December 31, Principal
2014 $ 30,000
2015 30,000
2016 30,000
2017 30,000
2018 12,500
$ 132,500

The summary of changes in the loan for the year ended December 31, 2013, is as follows:

Balance, December 31, 2012 $ 162,500
Additions -
Deletions (30,000)
Balance, December 31, 2013 $ 132,500

NOTE L – LEASE PAYABLE – BOARD FOR THE DEVELOPMENTALLY DISABLED

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. 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.

45
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE L – LEASE PAYABLE – BOARD FOR THE DEVELOPMENTALLY DISABLED (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, 2013, are as follows:

Year Ended
December 31, Principal
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 1,603,630
LESS AMOUNT REPRESENTING INTEREST (483,630)
PRINCIPAL BALANCE, DECEMBER 31, 2013 $ 1,120,000

The following schedule presents the changes in the long-term debt for the year ended December 31, 2013:

Balance Balance
December 31, December 31, Current
2012 Additions Retirements 2013 Portion
2010 Certificates of Participation $ 1,185,000 $ - $ 65,000 $ 1,120,000 $ 70,000

46
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE M – LINE OF CREDIT – BOARD FOR THE DEVELOPMENTALLY DISABLED

At December 31, 2013, the Organization had a $250,000 secured line of credit with Commerce Bank to be
drawn upon as needed with a variable interest rate not to exceed 4%. As of December 31, 2013, the balance on
the line of credit was $0. No interest was paid in the current year.

NOTE N – MORTGAGE PAYABLE – DORGAN-WEAVER HOUSING CORPORATION

As of December 31, 2013, 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, 2013:

Balance, December 31, 2012 $ 1,531,400
Additions -
Repayments -
Balance, December 31, 2013 $ 1,531,400

NOTE O – RISK MANAGEMENT

The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The 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.

47
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE P – 2002 BOND ELECTION

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, 2013, only
$15,590,000 of these bonds has been issued.

NOTE Q – INTERFUND TRANSFERS

Interfund transfers for the year ended December 31, 2013, consisted of the following:

Transfers
In (Out)
General Fund $ 291,097
Road and Bridge Trust Fund 23,831
Assessment Fund 150,000
Tax Maintenance Fund (100,000)
E-911 Fund (232,132)
Prosecuting Attorney Bad Check Fund (83,788)
Recorder Tech Fund (30,077)
Transfer Station Fund (18,931)
$ -

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.

48
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE R – JUDICIAL FACILITY RESERVE FUND

A Reserve Fund is established pursuant to the Indenture and is required to be funded on the date of initial
delivery of the Series 2006 Certificates in an amount equal to $1,926,000 (the “Reserve Requirement”). Money
in the Reserve Fund may be used solely (a) to make up any deficiencies in the Certificate Payment Fund and, if
the money in the Certificate Payment Fund is insufficient to pay the principal component or the interest
component of Base Rentals as the same become due, the Trustee is required to transfer from the Reserve Fund
to the Certificate Payment Fund an amount sufficient to make up such deficiency or (b) to make Base Rentals or
to make deposits to the Certificate Payment Fund to make such payments, in the amounts and at the times
specified in a written request of the County given to the Trustee. If the Trustee receives any such request, it
must transfer the amount specified therein on the date or dates specified therein. As of December 31, 2013, the
Reserve Account balance was $1,925,818.

NOTE S – COMMITMENTS

At December 31, 2013, the County was committed to the following contracts:

 HDR Engineering, Inc. for the Tri-lakes Biosolids Facility project, in the amount of $236,295
 Carson-Mitchell, Inc. for the Tri-lakes Biosolids Facility project, in the amount of $4,924,622

NOTE T – COMMITMENTS – TANEY COUNTY REGIONAL SEWER DISTRICT

The District was committed to contracts for utility improvements with Ace Pipe Cleaning, Inc. in the amount of
$1,333,198 as of December 31, 2013.

49
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2013

NOTE U – RESTATEMENT OF NET POSITION/FUND BALANCE

On January 1, 2011, the County ceased turning over County sewer sales tax monies to the Taney County
Regional Sewer District. The County’s financial statements are being restated to reflect the cash balance as of
January 1, 2013, in the County Sewer Sales Tax Fund.

The restatement for the County sewer sales tax as well as other restatements are as follows:

Road and Bridge Trust Fund
Fund Balance, as previously stated December 31, 2012 $ 9,374,917
Cash and Investments (39,125)
Fund Balance, as restated January 1, 2013 $ 9,335,792
County Sewer Sales Tax Fund
Fund Balance, as previously stated December 31, 2012 $ -
Cash and Investments 29,766,985
Fund Balance, as restated January 1, 2013 $ 29,766,985
Non-Major Special Revenue Funds
Sheriff's Federal Drug Forfeiture Fund
Fund Balance, as previously stated December 31, 2012 $ 1,599
Cash and Investments 3,794
Fund Balance, as restated January 1, 2013 $ 5,393
Recorder's Tech Fund
Fund Balance, as previously stated December 31, 2012 $ 295,985
Cash and Investments 135,488
Fund Balance, as restated January 1, 2013 $ 431,473
DOJ Vest Grant Fund
Fund Balance, as previously stated December 31, 2012 $ 4,401
Cash and Investments (2,887)
Fund Balance, as restated January 1, 2013 $ 1,514
Governmental Activities
Net Position, as previously stated December 31, 2012 $ 19,640,901
Cash and Investments 30,843,609
Net Position, as restated January 1, 2013 $ 50,484,510

50
SUPPLEMENTARY INFORMATION
TANEY COUNTY, MISSOURI
SCHEDULE OF FUNDING PROGRESS
Year Ended December 31, 2013

Primary Government

Missouri Local Government Employees Retirement System (LAGERS)

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

2/28/2011 $ 11,600,854 $ 14,517,186 $ 2,916,332 80% $ 9,600,841 30%
2/29/2012 12,029,405 14,217,025 2,187,620 85% 8,808,205 25%
2/28/2013 13,720,946 15,444,790 1,723,844 89% 8,964,337 19%
2/28/2013# 13,720,946 19,759,054 6,038,108 69% 8,964,337 67%
# After benefit changes.

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, 2011, annual actuarial
valuations. For a complete description of the actuarial assumptions used in the annual
valuations, please contact the LAGERS office in Jefferson City.

52
TANEY COUNTY, MISSOURI
SCHEDULE OF FUNDING PROGRESS (continued)
Year Ended December 31, 2013

Taney County Regional Sewer District

Missouri Local Government Employees Retirement System (LAGERS)

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

2/28/2013 $ 31,630 $ 70,456 $ 38,456 45% $ 244,011 16%

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, 2011, annual actuarial
valuations. For a complete description of the actuarial assumptions used in the annual
valuations, please contact the LAGERS office in Jefferson City.

53
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND – MODIFIED CASH BASIS
Year Ended December 31, 2013

Variance
Original Final With Final
RECEIPTS Budget Budget Actual Budget
Taxes
County sales tax $ 6,760,000 $ 6,760,000 $ 6,909,350 $ 149,350
Surtax 8,800 8,800 8,882 82
Payment in lieu of taxes 124,000 124,000 135,273 11,273
6,892,800 6,892,800 7,053,505 160,705
Collector's Commission
Collection commissions 652,527 652,527 692,586 40,059
Licenses and Permits
Beverage licenses 70,000 70,000 70,327 327
ATV permits 500 500 735 235
70,500 70,500 71,062 562
Intergovernmental Revenues
Federal 4,050,143 4,050,143 418,462 (3,631,681)
Other 13,500 13,500 17,267 3,767
4,063,643 4,063,643 435,729 (3,627,914)
Fees and Charges
Court 70,000 70,000 81,306 11,306
Public administration 50,000 50,000 66,322 16,322
County clerk 750 750 876 126
Recorder of deeds 1,050,000 1,050,000 1,037,001 (12,999)
Tax sale publication 15,000 15,000 15,530 530
Planning and zoning 15,000 15,000 28,323 13,323
Sheriff fees 663,000 663,000 936,352 273,352
Phone and vending 500 500 982 482
Election reimbursement 70,000 70,000 47,396 (22,604)
Computer room 1,000 1,000 599 (401)
Airport 852,000 852,000 531,212 (320,788)
2,787,250 2,787,250 2,745,899 (41,351)
Other
Interest income 100,000 100,000 73,236 (26,764)
Miscellaneous 45,500 45,500 134,525 89,025
Sale of property 5,000 5,000 13,374 8,374
150,500 150,500 221,135 70,635
TOTAL RECEIPTS 14,617,220 14,617,220 11,219,916 (3,397,304)
DISBURSEMENTS
Current
General Government
University extension 45,410 45,410 45,408 2
Collector of revenue 224,033 224,033 215,702 8,331
Treasurer 86,587 86,587 86,673 (86)
Recorder of deeds 254,737 254,737 259,395 (4,658)
County commission 216,750 216,750 204,016 12,734
Employee fringe benefits 2,163,132 2,163,132 2,045,480 117,652
Information technology 359,425 359,425 376,016 (16,591)
Planning and zoning 205,958 205,958 203,815 2,143
Election and voter registration 52,045 52,045 58,082 (6,037)
County clerk 133,195 133,195 125,745 7,450
Auditor 145,091 145,091 135,693 9,398
Building and grounds 617,902 617,902 651,670 (33,768)
4,504,265 4,504,265 4,407,695 96,570

54
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND – MODIFIED CASH BASIS (continued)
Year Ended December 31, 2013

Variance
Original Final With Final
Budget Budget Actual Budget
Judicial
Court administration 47,000 47,000 41,583 5,417
Circuit judge 59,114 59,114 70,276 (11,162)
Circuit clerk 78,277 78,277 75,087 3,190
Coroner 45,630 45,630 59,640 (14,010)
Court reporter 168,250 168,250 128,080 40,170
Public administrator 101,103 101,103 97,739 3,364
Juvenile 133,479 133,479 153,313 (19,834)
Prosecuting attorney 574,912 574,912 586,331 (11,419)
1,207,765 1,207,765 1,212,049 (4,284)
Public Safety
Sheriff 1,914,934 1,914,934 1,865,221 49,713
Jail 1,453,108 1,453,108 1,492,288 (39,180)
Animal control 204,550 204,550 204,550 -
Emergency management 54,282 54,282 46,802 7,480
3,626,874 3,626,874 3,608,861 18,013
Other 8,761,693 8,761,693 1,670,150 7,091,543
Public Works
Industrial Development Board 81,100 81,100 50,162 30,938
Airport
Airport 873,495 873,495 533,807 339,688
Debt Service
Principal and interest - - 1,075 (1,075)
TOTAL DISBURSEMENTS 19,055,192 19,055,192 11,483,799 7,571,393
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (4,437,972) (4,437,972) (263,883) 4,174,089
OTHER FINANCING
SOURCES (USES)
Operating transfers (out) (250,000) (250,000) (150,000) 100,000
Operating transfers in 470,000 470,000 441,097 (28,903)
TOTAL OTHER FINANCING
SOURCES (USES) 220,000 220,000 291,097 71,097
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (4,217,972) (4,217,972) 27,214 4,245,186
FUND BALANCE, January 1 9,814,825 9,814,825 9,814,825 -
FUND BALANCE, December 31 $ 5,596,853 $ 5,596,853 $ 9,842,039 $ 4,245,186

55
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – ROAD AND BRIDGE TRUST FUND – MODIFIED CASH
BASIS
Year Ended December 31, 2013

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 6,970,000 $ 6,970,000 $ 8,151,956 $ 1,181,956
Intergovernmental receipts 75,500 75,500 146,495 70,995
Other receipts 1,009,700 1,009,700 161,376 (848,324)
TOTAL RECEIPTS 8,055,200 8,055,200 8,459,827 404,627
DISBURSEMENTS
Highway and Roads
Wages and benefits 2,915,000 2,915,000 2,807,055 107,945
Computer related disbursements 10,000 10,000 22,996 (12,996)
Mileage and training 3,000 3,000 15,849 (12,849)
Professional services 88,500 88,500 27,831 60,669
Rental equipment 10,000 10,000 10,069 (69)
Telephone and utilities 47,500 47,500 44,426 3,074
Insurance 130,000 130,000 95,579 34,421
Repair and maintenance 340,000 340,000 508,859 (168,859)
Equipment 570,500 570,500 690,551 (120,051)
Road construction 839,000 839,000 764,621 74,379
Road supplies 1,908,000 1,908,000 1,806,294 101,706
Other supplies 495,250 495,250 492,859 2,391
Other 2,150,500 2,150,500 122,044 2,028,456
TOTAL DISBURSEMENTS 9,507,250 9,507,250 7,409,033 2,098,217
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (1,452,050) (1,452,050) 1,050,794 2,502,844
OTHER FINANCING SOURCES
Operating transfers in 25,000 25,000 23,831 (1,169)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES
OVER DISBURSEMENTS (1,427,050) (1,427,050) 1,074,625 2,501,675
FUND BALANCE, January 1, as restated 9,335,792 9,335,792 9,335,792 -
FUND BALANCE, December 31 $ 7,908,742 $ 7,908,742 $ 10,410,417 $ 2,501,675

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TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – LAW ENFORCEMENT SALES TAX FUND – MODIFIED
CASH BASIS
Year Ended December 31, 2013

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 1,675,000 $ 1,675,000 $ 1,725,465 $ 50,465
Other receipts - - 2,839 2,839
TOTAL RECEIPTS 1,675,000 1,675,000 1,728,304 53,304

DISBURSEMENTS
Debt service 1,700,931 1,700,931 1,646,144 54,787
TOTAL DISBURSEMENTS 1,700,931 1,700,931 1,646,144 54,787
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (25,931) (25,931) 82,160 108,091
OTHER FINANCING SOURCES
Operating transfers in 75,931 75,931 - (75,931)
EXCESS OF RECEIPTS AND OTHER
SOURCES OVER DISBURSEMENTS 50,000 50,000 82,160 32,160
FUND BALANCE, January 1 - - - -
FUND BALANCE, December 31 $ 50,000 $ 50,000 $ 82,160 $ 32,160

57
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – COUNTY SEWER SALES TAX FUND – MODIFIED CASH
BASIS
Year Ended December 31, 2013

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 6,700,000 $ 6,700,000 $ 6,903,074 $ 203,074
Intergovernmental 6,700,001 6,700,001 477,714 (6,222,287)
Other receipts 330,000 330,000 882,626 552,626
TOTAL RECEIPTS 13,730,001 13,730,001 8,263,414 (5,466,587)
DISBURSEMENTS
Sewer 26,481,065 26,481,065 12,820,798 13,660,267
TOTAL DISBURSEMENTS 26,481,065 26,481,065 12,820,798 13,660,267
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (12,751,064) (12,751,064) (4,557,384) 8,193,680
FUND BALANCE, January 1, as restated 29,766,985 29,766,985 29,766,985 -
FUND BALANCE, December 31 $ 17,015,921 $ 17,015,921 $ 25,209,601 $ 8,193,680

58
TANEY COUNTY, MISSOURI
NOTE TO BUDGETARY COMPARISON SCHEDULES
December 31, 2013

Budgets and Budgetary Accounting

The County follows these procedures in establishing the budgetary data reflected in the financial statements:

1) In accordance with Chapter 67, RSMo, the County adopts a budget for each fund.

2) Prior to January, the County Auditor, who serves as the Budget Officer, submits to the
Commission a proposed budget for the fiscal year beginning on the following January 1. The
budget includes estimated receipts and proposed disbursements for all County funds.
Budgeted disbursements cannot exceed beginning available monies plus estimated receipts
for the year.

3) A public hearing is conducted to obtain taxpayer comments. Prior to its approval by the
Commission, the budget document is available for public inspection.

4) In January, the budget is legally enacted by a vote of the Commission.

5) Subsequent to its formal approval of the budget, the Commission has the authority to make
necessary adjustments to the budget by formal vote of the Commission. Adjustments made
during the year are reflected in the budget information included in the financial statements.
Budgeted amounts are as originally adopted, or as amended by the Commission. Individual
amendments were not material to the original appropriations, which were amended.

6) Budgets for County funds are prepared and adopted on the modified cash basis (budget
basis), recognizing receipts when collected and disbursements when paid.

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OTHER FINANCIAL INFORMATION
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES – NON-MAJOR SPECIAL REVENUE FUNDS – MODIFIED CASH BASIS
December 31, 2013

Prosecuting
Law Prosecuting Attorney Sheriff Prosecuting Sheriff
Enforcement Attorney Tax Delinquent Civil Vest Attorney Drug
Assessment Training Training E-911 Maintenance Tax Fees Grant Bad Check Forfeiture
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 128,675 $ 3,156 $ 3,987 $ 154,321 $ 121,027 $ 81,677 $ 69,236 $ - $ 67,172 $ 5,425
TOTAL ASSETS $ 128,675 $ 3,156 $ 3,987 $ 154,321 $ 121,027 $ 81,677 $ 69,236 $ - $ 67,172 $ 5,425
FUND BALANCES
Restricted for:
Public safety $ - $ 3,156 $ - $ 154,321 $ - $ - $ 69,236 $ - $ - $ 5,425
Elections - - - - - - - - - -
Recorder - - - - - - - - - -
Judicial - - 3,987 - - 81,677 - - 67,172 -
Tax maintenance - - - - 121,027 - - - - -
Assigned
Assessment 128,675 - - - - - - - - -
TOTAL FUND BALANCES $ 128,675 $ 3,156 $ 3,987 $ 154,321 $ 121,027 $ 81,677 $ 69,236 $ - $ 67,172 $ 5,425

61
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES – NON-MAJOR SPECIAL REVENUE FUNDS – MODIFIED CASH BASIS
(continued)
December 31, 2013

Local Prosecuting
Emergency Circuit Attorney
Planning Election Recorder Law Domestic Sheriff Inmate Clerk Witness
Commission Services Tech Library Violence Revolving Security Interest Investigation
Fund Fund Fund Fund Fund Fund Fund Fund Fund Total
ASSETS
Cash and investments $ 12,937 $ 40,553 $ 474,933 $ 56,494 $ 9,277 $ 86,990 $ 26,938 $ 51,803 $ 7,826 $ 1,402,427
TOTAL ASSETS $ 12,937 $ 40,553 $ 474,933 $ 56,494 $ 9,277 $ 86,990 $ 26,938 $ 51,803 $ 7,826 $ 1,402,427
FUND BALANCES
Restricted for:
Public safety $ 12,937 $ - $ - $ - $ 9,277 $ 86,990 $ 26,938 $ - $ - $ 368,280
Elections - 40,553 - - - - - - - 40,553
Recorder - - 474,933 - - - - - - 474,933
Judicial - - - 56,494 - - - 51,803 7,826 268,959
Tax maintenance - - - - - - - - - 121,027
Assigned
Assessment - - - - - - - - - 128,675
TOTAL FUND BALANCES $ 12,937 $ 40,553 $ 474,933 $ 56,494 $ 9,277 $ 86,990 $ 26,938 $ 51,803 $ 7,826 $ 1,402,427

62
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, 2013

Prosecuting
Law Prosecuting Attorney Sheriff Prosecuting Sheriff
Enforcement Attorney Tax Delinquent Civil Vest Attorney Drug
Assessment Training Training E-911 Maintenance Tax Fees Grant Bad Check Forfeiture
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
RECEIPTS
Taxes $ - $ - $ - $ 485,944 $ - $ - $ - $ - $ - $ -
Intergovernmental receipts - - - - - - - 1,313 - -
Fees and charges 637,850 4,674 1,189 2,216 121,268 5,288 50,081 - 46,371 -
Other receipts 2,499 2,216 32 2,850 1,103 594 1,486 9 884 32
TOTAL RECEIPTS 640,349 6,890 1,221 491,010 122,371 5,882 51,567 1,322 47,255 32
DISBURSEMENTS
Current
General government 694,165 - - - 68,328 14,626 - - - -
Judicial - - 2,032 - - - - - 15,769 -
Public safety - 4,485 - 509,281 - - 57,231 2,836 - -
TOTAL DISBURSEMENTS 694,165 4,485 2,032 509,281 68,328 14,626 57,231 2,836 15,769 -
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (53,816) 2,405 (811) (18,271) 54,043 (8,744) (5,664) (1,514) 31,486 32
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) 150,000 - - (232,132) (100,000) - - - (83,788) -
TOTAL OTHER FINANCING
SOURCES (USES) 150,000 - - (232,132) (100,000) - - - (83,788) -
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) 96,184 2,405 (811) (250,403) (45,957) (8,744) (5,664) (1,514) (52,302) 32
FUND BALANCE, January 1, as restated 32,491 751 4,798 404,724 166,984 90,421 74,900 1,514 119,474 5,393
FUND BALANCE, December 31 $ 128,675 $ 3,156 $ 3,987 $ 154,321 $ 121,027 $ 81,677 $ 69,236 $ - $ 67,172 $ 5,425

63
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, 2013

Local Prosecuting
Emergency Circuit Attorney
Planning Election Recorder Law Domestic Sheriff Inmate Clerk Witness
Commission Services Tech Library Violence Revolving Security Interest Investigation
Fund Fund Fund Fund Fund Fund Fund Fund Fund Total
RECEIPTS
Taxes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 485,944
Intergovernmental receipts 4,646 21,700 - - - - - - - 27,659
Fees and charges - 3,474 240,074 13,716 8,264 57,063 23,226 2,242 - 1,216,996
Other receipts 683 7,951 3,321 141 35 559 51 234 - 24,680
TOTAL RECEIPTS 5,329 33,125 243,395 13,857 8,299 57,622 23,277 2,476 - 1,755,279
DISBURSEMENTS
Current
General government - 19,719 169,858 - - - - 9,315 - 976,011
Judicial - - - 8,144 - - - - 286 26,231
Public safety 1,609 - - - 8,800 35,526 1,753 - - 621,521
TOTAL DISBURSEMENTS 1,609 19,719 169,858 8,144 8,800 35,526 1,753 9,315 286 1,623,763
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS 3,720 13,406 73,537 5,713 (501) 22,096 21,524 (6,839) (286) 131,516
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) - - (30,077) - - - - - - (295,997)

TOTAL OTHER FINANCING
SOURCES (USES) - - (30,077) - - - - - - (295,997)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) 3,720 13,406 43,460 5,713 (501) 22,096 21,524 (6,839) (286) (164,481)
FUND BALANCE, January 1, as restated 9,217 27,147 431,473 50,781 9,778 64,894 5,414 58,642 8,112 1,566,908
FUND BALANCE, December 31 $ 12,937 $ 40,553 $ 474,933 $ 56,494 $ 9,277 $ 86,990 $ 26,938 $ 51,803 $ 7,826 $ 1,402,427

64
 C E R T I F I E D P U B L I C A C C O U N T A N T S A N D B U S I N E S S A D V I S O R S

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, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, 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, 2013, and the related
notes to the financial statements, which collectively comprise Taney County, Missouri’s basic financial
statements and have issued our report thereon dated June 20, 2014.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered Taney County, Missouri’s
internal control over financial reporting to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of Taney County, Missouri’s internal control. Accordingly, we do
not express an opinion on the effectiveness of Taney County, Missouri’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was
not designed to identify all deficiencies in internal control over financial reporting that might be material
weaknesses or significant deficiencies and, therefore, material weaknesses or significant deficiencies may exist
that were not identified. However, as described in the accompanying schedule of findings and responses, we
identified certain deficiencies in internal control that we consider to be material weaknesses.

3828 South Avenue • Springfield, Missouri 65807 • 417-882-0904 • fax 417-882-4343
500 West Main Street, Suite 200 • Branson, Missouri 65616 • 417-334-2987 • fax 417-336-3403

www.kpmcpa.com
Member CPA Associates International, Inc., with offices in principal U.S. and International cities. 65
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. A significant deficiency is a
deficiency or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charges with governance. We consider the deficiencies described
in the accompanying schedule of findings and responses to be material weaknesses. The deficiencies are
identified as items 2013-1 and 2013-2.

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.

Response to Findings

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, express no opinion
on it.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.

KPM CPAs, PC
June 20, 2014

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TANEY COUNTY, MISSOURI
SCHEDULE OF FINDINGS AND RESPONSES
Year Ended December 31, 2013

2013-1 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.

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.

2013-2 Reconciliation of annual financial statements to accounting records

Condition: The County has not adopted formal policies and procedures requiring a review and
reconciliation of the annual financial statements to the accounting records prior to the approval of
the financial statements by the County Commission. The County should adopt policy requiring the
Auditor’s office review and reconcile the annual financial statements to the accounting records.
The Commission should then ensure this review is complete prior to the approval of the annual
financial statements.

Criteria: The annual financial statements prepared by the independent auditor from the County’s
accounting records should be reviewed and reconciled by the County Auditor’s office prior to the
approval of the Commission.

Effect: The financial statements for the year ended December 31, 2012 were restated to correct
errors in the annual financial statements.

Recommendation: The County adopt formal policies and procedures to ensure the annual financial
statements are reviewed and reconciled to the accounting records prior to the approval of the
County Commission.

Response: The County will adopt policies and procedures to ensure the annual financial statements
prepared by the independent auditor are review and reconciled by the County Auditor’s office
prior to the approval of the County Commission.

67