2014 Audit Report

TANEY COUNTY, MISSOURI

BASIC FINANCIAL STATEMENTS

Year Ended December 31, 2014
 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....................................................................... 18

Statement of Receipts, Disbursements and Changes in Fund
Balance – Governmental Funds – Modified Cash Basis .......................................................................... 19

Statement of Net Position – Proprietary Fund – Modified Cash Basis........................................................... 20

Statement of Receipts, Disbursements and Changes in Net
Position – Proprietary Fund – Modified Cash Basis ................................................................................. 21

Statement of Cash Flows – Proprietary Fund – Modified Cash Basis ............................................................ 22

Statement of Assets and Liabilities – Agency Funds – Modified Cash Basis ................................................ 23

Notes to Basic Financial Statements ............................................................................................................... 26

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

2
 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

Independent Auditors' Report on Compliance for each Major Program and on
Internal Control over Compliance Required by OMB Circular A-133 .................................................... 67

Schedule of Expenditures of Federal Awards ................................................................................................. 70

Summary Schedule of Findings and Questioned Costs .................................................................................. 72

Schedule of Prior Audit Findings ................................................................................................................... 73

3
 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 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, 2014, 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 the 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.

www.kpmcpa.com
1445 E. Republic Road, Springfield, MO 65804 | 417-882-4300 | fax 417-882-4343
500 W. Main Street Suite 200, Branson, MO 65616 | 417-334-2987 | fax 417-336-3403
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 discretely
presented component units, each major fund and the aggregate remaining fund information, as of December 31,
2014, 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. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as
required by U.S. Office of Managemente and Budget Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations, and is also not a required part of the basic financial statements.

5
Taney County Commission
Taney County
Forsyth, Missouri

The Combining Nonmajor fund financial statements and the Schedule of Expenditures of Federal Awards 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 and the Schedule of Expenditures of Federal
Awards 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 May 18, 2015, 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
Springfield, Missouri
May 18, 2015

6
MANAGEMENT’S DISCUSSION AND ANALYSIS
 TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2014

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, 2014, 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 $306,012.
 The fund balance for the General Fund decreased by $1,303,726. Using the modified cash basis
does not take into consideration capital improvements.
 The fund balance for the Road and Bridge Trust Fund increased by $1,099,223.
 The fund balance for the Law Enforcement Sales Tax Fund increased by $1,337,160.

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.

Supplementary Information: This Management’s Discussion and Analysis and the budgetary comparison
schedules represent additional financial information. 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”).

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2014

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, 2014

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,
2014 2013
ASSETS
Cash and investments $ 47,294,009 $ 47,600,021
TOTAL ASSETS $ 47,294,009 $ 47,600,021
NET POSITION
Restricted $ 37,652,798 $ 36,975,930
Unrestricted 9,641,211 10,624,091
TOTAL NET POSITION $ 47,294,009 $ 47,600,021

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2014

Changes in Net Position – Modified Cash Basis

Year Ended December 31,
2014 2013
RECEIPTS
Program Receipts
Charges for services $ 6,150,948 $ 5,853,442
Operating grants and contributions 119,446 162,759
Capital grants and contributions 4,753,730 924,838
General Receipts
Sales tax receipts 23,323,577 22,436,674
Motor vehicle sales tax 1,306,368 1,213,119
Other taxes 609,315 670,151
Interest 359,735 368,453
Other receipts 544,401 942,160
TOTAL RECEIPTS 37,167,520 32,571,596
DISBURSEMENTS
General government 5,719,586 5,383,706
Judicial 1,329,061 1,238,280
Public safety 4,957,060 4,230,382
Public works 55,000 50,162
Highway and roads 7,867,197 7,409,033
Airport 793,196 533,807
Sewer 9,747,577 12,820,798
Debt service 1,707,683 1,647,219
Other 4,261,583 1,670,150
Transfer station 1,035,589 935,683
TOTAL DISBURSEMENTS 37,473,532 35,919,220
(DECREASE) IN NET POSITION $ (306,012) $ (3,347,624)

Overall receipts of the County increased by $4,595,924 from the prior year. Tax revenues were up $919,316.
Overall disbursements of the County were up $1,554,312.

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2014

FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS

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

 The General Fund balance decreased by $1,303,726 for the year ended December 31, 2014.
 The Road and Bridge Trust Fund increased by $1,099,223, which increased the fund balance to
$11,509,640 as of December 31, 2014.
 The Law Enforcement Sales Tax Fund increased by $1,337,160, which increased the fund
balance to $1,419,320 as of December 31, 2014.
 County Sewer Sales Tax Fund decreased $1,619,591, which decreased the fund balance to
$23,590,010. This was a result of several improvement projects occurring in the current year.

FINANCIAL ANALYSIS BUDGET VERSUS ACTUAL RESULTS – GENERAL FUND

Budget
Original Final Actual
RECEIPTS
Taxes $ 7,153,800 $ 7,153,800 $ 7,338,215
Commissions 702,500 702,500 838,687
Licenses and permits 70,500 70,500 69,464
Intergovernmental receipts 4,030,700 4,030,700 2,652,234
Fees and charges 3,112,183 3,112,183 2,447,958
Other 116,600 116,600 375,032
TOTAL RECEIPTS $ 15,186,283 $ 15,186,283 $ 13,721,590
DISBURSEMENTS
General government $ 5,479,727 $ 5,479,727 $ 4,672,597
Judicial 1,246,298 1,246,298 1,261,258
Public safety 3,687,037 3,687,037 4,216,984
Public works 76,600 76,600 55,000
Other 7,416,379 7,416,379 4,261,583
Airport 847,643 847,643 793,196
TOTAL DISBURSEMENTS $ 18,753,684 $ 18,753,684 $ 15,260,618

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 revenues would occur. There was a large amount of the flood buyout funds that were budgeted
and not spent in 2014. That grant will be finalized in 2015. The Commission has determined to do a better job
of budgeting what we will have as a fund balance to carry forward, but there are several of the minor funds that
are controlled by other elected officials and it makes sense to budget and appropriate the entire amount in those
funds in case they are needed by those officials. We as a county are hoping that many of those expenses will
not become reality, but funds are there and will be carried forward if not needed.
12
TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2014

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

We have seen a return to better economic times, but are hoping and expecting a better year in 2015. We have
cut many of the offices more than they can sustain over any long period of time without a decrease in services.
Hopefully we can bring in enough revenue to cycle some of those County positions back into the budget.

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.

13
TANEY COUNTY, MISSOURI
STATEMENT OF NET POSITION – MODIFIED CASH BASIS
December 31, 2014

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 $ 46,394,125 $ 899,884 $ 47,294,009 $ 2,523,461 $ 1,292,782 $ 999,216 $ 72,097 $ 16,938
TOTAL ASSETS $ 46,394,125 $ 899,884 $ 47,294,009 $ 2,523,461 $ 1,292,782 $ 999,216 $ 72,097 $ 16,938
NET POSITION
Restricted $ 37,652,798 $ - $ 37,652,798 $ 706,031 $ 46,385 $ 102,500 $ 63,586 $ 13,949
Unrestricted 8,741,327 899,884 9,641,211 1,817,430 1,246,397 896,716 8,511 2,989
TOTAL NET POSITION $ 46,394,125 $ 899,884 $ 47,294,009 $ 2,523,461 $ 1,292,782 $ 999,216 $ 72,097 $ 16,938

See accompanying notes.

14
TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES – MODIFIED CASH BASIS
Year Ended December 31, 2014

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 $ (5,719,586) $ 3,223,939 $ 5,605 $ - $ (2,490,042) $ - $ (2,490,042)
Judicial (1,329,061) 231,996 - - (1,097,065) - (1,097,065)
Public safety (4,957,060) 636,621 29,350 - (4,291,089) - (4,291,089)
Public works (55,000) - - - (55,000) - (55,000)
Highway and roads (7,867,197) 52,727 84,491 122,386 (7,607,593) - (7,607,593)
Airport (793,196) 730,709 - - (62,487) - (62,487)
Sewer (9,747,577) - - 2,111,190 (7,636,387) - (7,636,387)
Debt service (1,707,683) - - - (1,707,683) - (1,707,683)
Other (4,261,583) - - 2,520,154 (1,741,429) - (1,741,429)
TOTAL GOVERNMENTAL
ACTIVITIES (36,437,943) 4,875,992 119,446 4,753,730 (26,688,775) - (26,688,775)
Business-Type Activities
Transfer station (1,035,589) 1,274,956 - - - 239,367 239,367
TOTAL BUSINESS-TYPE
ACTIVITIES (1,035,589) 1,274,956 - - - 239,367 239,367
TOTAL PRIMARY GOVERNMENT $ (37,473,532) $ 6,150,948 $ 119,446 $ 4,753,730 (26,688,775) 239,367 (26,449,408)

See accompanying notes.

15
TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES – MODIFIED CASH BASIS (continued)
Year Ended December 31, 2014

Primary Government
Net (Disbursements), Receipts
Program Receipts and Changes in Net Position
Charges Operating Capital Business-
for Grants and Grants and Governmental Type
Disbursements Services Contributions Contributions Activities Activities Total
Component Units
Taney County Regional Sewer District $ (11,344,253) $ 1,509,354 $ - $ 3,280,081
Taney County Health Center (3,732,667) 1,686,096 622,359 -
Developmentally Disabled Board (2,217,382) 1,071,322 - -
Dorgan-Weaver Housing Corp. (59,075) 69,199 - -
Combs-Redfern Apartments Inc. (153,955) 21,892 - -
TOTAL COMPONENT UNITS $ (17,507,332) $ 4,357,863 $ 622,359 $ 3,280,081

General Receipts and Transfers:
Ad valorem taxes - - -
Sales taxes 23,323,577 - 23,323,577
Motor vehicle sales taxes and gas taxes 1,306,368 - 1,306,368
Other taxes 609,315 - 609,315
Interest 354,024 5,711 359,735
Other receipts 520,608 23,793 544,401
Transfers 22,364 (22,364) -
Special Items:
Reimbursement from Combs-Redfern Apartmen - - -
Loan proceeds - - -
Total General Receipts and Transfers 26,136,256 7,140 26,143,396
Increase (Decrease) in Net Position (552,519) 246,507 (306,012)
Net Position, Beginning of year 46,946,644 653,377 47,600,021
Net Position, End of year $ 46,394,125 $ 899,884 $ 47,294,009

See accompanying notes.

16
TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES – MODIFIED CASH BASIS (continued)
Year Ended December 31, 2014
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.
Component Units
Taney County Regional Sewer District $ (6,554,818) $ - $ - $ - $ -
Taney County Health Center - (1,424,212) - - -
Developmentally Disabled Board - - (1,146,060) - -
Dorgan-Weaver Housing Corp. - - - 10,124 -
Combs-Redfearn Apartments Inc. - - - - (132,063)
TOTAL COMPONENT UNITS (6,554,818) (1,424,212) (1,146,060) 10,124 (132,063)
General Receipts and Transfers:
As valorem taxes - 1,390,000 916,865 - -
Sales taxes - - - - -
Motor vehicle sales taxes and gas taxes - - - - -
Other taxes - - - - -
Interest 4,955 8,928 2,308 77 1
Other receipts 256,383 24,806 37,367 522 -
Transfers - - - - -
Special Items:
Reimbursement from Combs-Redfern Apartments Inc. - - 117,034 - -
Loan proceeds - - 200,000 - -
Total General Receipts and Transfers 261,338 1,423,734 1,273,574 599 1
Increase (Decrease) in Net Position (6,293,480) (478) 127,514 10,723 (132,062)
Net Position, Beginning of year 8,816,941 1,293,260 871,702 61,374 149,000
Net Position, End of year $ 2,523,461 $ 1,292,782 $ 999,216 $ 72,097 $ 16,938

See accompanying notes.

17
TANEY COUNTY, MISSOURI
BALANCE SHEET – GOVERNMENTAL FUNDS – MODIFIED CASH BASIS
December 31, 2014

Special Revenue Funds
Law County Nonmajor
Road and Enforcement Sewer Special Total
General Bridge Sales Tax Sales Tax Revenue Governmental
Fund Trust Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 8,538,313 $ 11,509,640 $ 1,419,320 $ 23,590,010 $ 1,336,842 $ 46,394,125
TOTAL ASSETS $ 8,538,313 $ 11,509,640 $ 1,419,320 $ 23,590,010 $ 1,336,842 $ 46,394,125
FUND BALANCES
Fund Balances
Restricted for:
Road and Bridge $ - $ 11,509,640 $ - $ - $ - $ 11,509,640
Public Safety - - 1,419,320 - 303,314 1,722,634
Sewer - - - 23,590,010 - 23,590,010
Elections - - - - 31,375 31,375
Recorder - - - - 413,572 413,572
Judicial - - - - 268,753 268,753
Tax maintenance - - - - 116,814 116,814
Assigned to:
Assessment Fund - - - - 203,014 203,014
Unassigned 8,538,313 - - - - 8,538,313
TOTAL FUND BALANCES $ 8,538,313 $ 11,509,640 $ 1,419,320 $ 23,590,010 $ 1,336,842 $ 46,394,125

See accompanying notes.

18
TANEY COUNTY, MISSOURI
STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN FUND BALANCE –
GOVERNMENTAL FUNDS – MODIFIED CASH BASIS
Year Ended December 31, 2014

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 $ 7,338,215 $ 8,481,418 $ 1,791,417 $ 7,172,704 $ 455,506 $ 25,239,260
Collector's commission 838,687 - - - - 838,687
Licenses and permits 69,464 - - - - 69,464
Intergovernmental receipts 2,652,234 236,604 - 2,111,189 10,056 5,010,083
Fees and charges 2,447,958 - - - 1,467,156 3,915,114
Other 375,032 197,323 4,987 192,532 20,578 790,452

TOTAL RECEIPTS 13,721,590 8,915,345 1,796,404 9,476,425 1,953,296 35,863,060

DISBURSEMENTS
General government 4,672,597 - - - 1,046,989 5,719,586
Judicial 1,261,258 - - - 67,803 1,329,061
Public safety 4,216,984 - - - 740,076 4,957,060
Public works 55,000 - - - - 55,000
Airport 793,196 - - - - 793,196
Other 4,261,583 - - - - 4,261,583
Highway and roads - 7,867,197 - - - 7,867,197
Sewer - - - 9,747,577 - 9,747,577
Debt service - - 1,707,683 - - 1,707,683

TOTAL DISBURSEMENTS 15,260,618 7,867,197 1,707,683 9,747,577 1,854,868 36,437,943

EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (1,539,028) 1,048,148 88,721 (271,152) 98,428 (574,883)

OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) 235,302 51,075 1,248,439 (1,348,439) (164,013) 22,364

TOTAL OTHER FINANCING
SOURCES (USES) 235,302 51,075 1,248,439 (1,348,439) (164,013) 22,364

EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES
OVER DISBURSEMENTS
AND OTHER (USES) (1,303,726) 1,099,223 1,337,160 (1,619,591) (65,585) (552,519)

FUND BALANCE, January 1 9,842,039 10,410,417 82,160 25,209,601 1,402,427 46,946,644
FUND BALANCE, December 31 $ 8,538,313 $ 11,509,640 $ 1,419,320 $ 23,590,010 $ 1,336,842 $ 46,394,125

See accompanying notes.

19
TANEY COUNTY, MISSOURI
STATEMENT OF NET POSITION – PROPRIETARY FUND – MODIFIED CASH BASIS
December 31, 2014

Enterprise
Fund
Transfer
Station Fund
ASSETS
Current Assets
Cash and cash equivalents $ 899,884
TOTAL ASSETS $ 899,884
Net Position
Unrestricted $ 899,884
TOTAL NET POSITION $ 899,884

See accompanying notes.

20
TANEY COUNTY, MISSOURI
STATEMENT OF RECEIPTS, DISBURSEMENTS AND CHANGES IN NET POSITION – PROPRIETARY
FUND – MODIFIED CASH BASIS
Year Ended December 31, 2014

Enterprise
Fund
Transfer
Station Fund
OPERATING RECIEPTS
Charges for services $ 1,274,956
TOTAL OPERATING RECEIPTS 1,274,956
OPERATING DISBURSEMENTS
Insurance claims and disbursements 9,300
Salaries and employee benefits 260,518
Supplies 306,748
Telephone and utilities 3,354
Repair and maintenance 75,499
Landfill services 368,942
Other 11,228
TOTAL OPERATING DISBURSEMENTS 1,035,589
OPERATING INCOME 239,367
NONOPERATING RECEIPTS
Interest receipts 5,711
Other receipts 23,793
TOTAL NONOPERATING RECEIPTS 29,504
INCOME BEFORE OPERATING TRANSFERS 268,871
Operating transfers (out) (22,364)
NET INCOME 246,507
NET POSITION, January 1 653,377
NET POSITION, December 31 $ 899,884

See accompanying notes.

21
TANEY COUNTY, MISSOURI
STATEMENT OF CASH FLOWS – PROPRIETARY FUND – MODIFIED CASH BASIS
Year Ended December 31, 2014

Enterprise
Fund
Transfer
Station Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1,298,749
Cash paid to suppliers (775,071)
Cash paid to employees (260,518)
NET CASH PROVIDED BY
OPERATING ACTIVITIES 263,160
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 5,711
NET CASH PROVIDED BY
INVESTING ACTIVITIES 5,711
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers (to) other funds (22,364)
NET CASH (USED) BY NONCAPITAL
FINANCING ACTIVITIES (22,364)
NET INCREASE IN CASH
AND CASH EQUIVALENTS 246,507
CASH AND CASH EQUIVALENTS, Beginning of year 653,377
CASH AND CASH EQUIVALENTS, End of year $ 899,884

RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income $ 239,367
Adjustments to reconcile operating income
to net cash provided by operating activities:
Other receipts 23,793
NET CASH PROVIDED BY
OPERATING ACTIVITIES $ 263,160

See accompanying notes.

22
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS
December 31, 2014

Sheriff's Sheriff's Sheriff's Cities Land
Office Office Office Sheriff Collector Financial Sales Unclaimed
Transport General Bond Commissary of Revenue Institution Surplus Fee
Fund Fund Fund Fund Fund Tax Fund Fund Fund
ASSETS
Cash and investments $ 493 $ 79,036 $ 6 $ 14,579 $ 25,235,442 $ 24,382 $ 127,835 $ 12,590
TOTAL ASSETS $ 493 $ 79,036 $ 6 $ 14,579 $ 25,235,442 $ 24,382 $ 127,835 $ 12,590
LIABILITIES
Due to others $ - $ - $ 6 $ 14,579 $ - $ - $ - $ 12,590
Due to other governments 493 79,036 - - 25,235,442 24,382 127,835 -
TOTAL LIABILITIES $ 493 $ 79,036 $ 6 $ 14,579 $ 25,235,442 $ 24,382 $ 127,835 $ 12,590

See accompanying notes.
23
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS (continued)
December 31, 2014

Protest
Fines and Western P&Z National Criminal Circuit Recorder's Tax
Forfeitures Fire Bonds Forest Cost Clerk User Fee Account
Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 58,833 $ 362 $ 172,172 $ 138,912 $ 69 $ 454,892 $ 187,506 $ 908,829
TOTAL ASSETS $ 58,833 $ 362 $ 172,172 $ 138,912 $ 69 $ 454,892 $ 187,506 $ 908,829
LIABILITIES
Due to others $ - $ - $ 172,172 $ - $ - $ - $ - $ 908,829
Due to other governments 58,833 362 - 138,912 69 454,892 187,506 -
TOTAL LIABILITIES $ 58,833 $ 362 $ 172,172 $ 138,912 $ 69 $ 454,892 $ 187,506 $ 908,829

See accompanying notes.

24
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES – AGENCY FUNDS – MODIFIED CASH BASIS (continued)
December 31, 2014

County OTC
Employee Health Financial Senior
Retirement Center Handicapped School Institution Services
Fund Fund Fund Fund Tax Fund Fund Total
ASSETS
Cash and investments $ 14,290 $ 743 $ 490 $ 22,167 $ 164 485,794 $ 27,939,586
TOTAL ASSETS $ 14,290 $ 743 $ 490 $ 22,167 $ 164 $ 485,794 $ 27,939,586
LIABILITIES
Due to others $ 14,290 $ - $ - $ - $ - $ - $ 1,122,466
Due to other governments - 743 490 22,167 164 485,794 26,817,120
TOTAL LIABILITIES $ 14,290 $ 743 $ 490 $ 22,167 $ 164 $ 485,794 $ 27,939,586

See accompanying notes.

25
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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.

26
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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.

27
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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.

28
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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.

29
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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.

30
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014,
was $193,651.

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.

31
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014, all bank balances on deposit were 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.

32
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

NOTE B – CASH AND INVESTMENTS (continued)

The County’s investments at December 31, 2014, are as follows:

Investment Type Maturity Carrying Value Fair Value
Taney County
Certificates of Deposit 1/8/2015 - 2/9/2019 $ 39,818,274 $ 39,802,205
FHLMC one time call 1/30/2015 - 6/30/2017 1,500,250 1,498,555
FHLB Bonds US Domestic 6/10/2016 - 6/26/2017 1,773,875 1,757,117
Fannie Mae Notes - US Domestic 3/15/2016 522,835 510,580
Federal Farm Credit Bank 8/18/2017 500,000 498,640
$ 44,115,234 $ 44,067,097

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, 2014, 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.

33
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014, all bank
balances on deposit are entirely insured or collateralized.

The District’s investments at December 31, 2014, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 1/28/2015 $ 216,500

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, 2014, 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, 2014, all bank balances
on deposit are entirely insured or collateralized.

The Center’s investments at December 31, 2014, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 7/3/2017 $ 260,494
Certificate of Deposit 4/1/2018 152,837
$ 413,331

34
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014, 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, 2014, all bank balances
on deposit are entirely insured or collateralized.

Investments of the Board as of December 31, 2014, are as follows:

Investment Type Maturity Fair Value
Certificate of Deposit 3/23/2015 $ 260,073
Certificate of Deposit 4/17/2015 253,915
$ 513,988

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, 2014, 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.

35
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014,
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, except for the legal
matter noted below.

The County is currently involved in appealing the Herion case in which $495,556 was awarded to the plaintiff
for breach of contract. It is reasonably possible that the plaintiff will prevail.

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.

36
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

NOTE D – PENSION PLAN – CERF (continued)

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.

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 15.7% (General) and 18.0% (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.

37
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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 $ 1,490,831
Interest on net pension obligation -
Adjustment to annual required contribution -
Annual pension cost 1,490,831
Actual contributions 1,490,831
Increase (decrease) in NPO -
NPO beginning of year -
NPO end of year $ -

The annual required contribution (ARC) was determined as part of the February 29, 2012, and February 28,
2013, annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of
February 28, 2014, 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 29, 2012, was 15 years
for the General division and 15 years for the Police division. The amortization period at February 28, 2013, was
23 years for the General division and 21 years for the Police division.

Three-Year Trend Information

Year Annual Percentage Net
Ended Pension of APC Pension
June 30, Cost (APC) Contributed Obligation
2012 $ 1,072,089 100% $ -
2013 1,259,800 100% -
2014 1,490,831 100% -

38
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

NOTE E – PENSION PLAN – LAGERS – PRIMARY GOVERNMENT (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
2/28/2014 $ 15,987,761 $ 21,420,711 $ 5,432,950 75% $ 9,244,209 59%

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.

39
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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 11.6% (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 $ 32,903
Interest on net pension obligation -
Adjustment to annual required contribution -
Annual pension cost 32,903
Actual contributions 32,903
Increase (decrease) in NPO -
NPO beginning of year -
NPO end of year $ -

The annual required contribution (ARC) was determined as part of the February 29, 2012, and February 28,
2013, annual actuarial valuation using the entry age actuarial cost method. The actuarial assumptions as of
February 28, 2014, 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. The amortization period as of February 28, 2013, was 29 years for the General
division.

40
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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% -
2014 32,903 100.0% -

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

2/28/2014 $ 74,489 $ 98,557 $ 24,068 76% $ 263,013 9%

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 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.

41
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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

The 2014 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 $ 866,015,380
Personal property 134,311,366
Railroad and utilities 33,820,319
$ 1,034,147,065
TAX LEVY
General Fund $ -

The legal debt margin at December 31, 2014, is computed as follows:

Constitutional debt limit $ 103,414,707
General obligation bonds payable -
LEGAL DEBT MARGIN $ 103,414,707

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, 2014, are due as follows:

42
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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

Year Ended Administrative
December 31, Principal Interest Fee Total
2015 $ - $ 152,250 $ 17,091 $ 169,341
2016 - 152,250 17,091 169,341
2017 - 152,250 17,091 169,341
2018 - 152,250 17,091 169,341
2019 940,000 127,575 16,950 1,084,525
2020 965,000 77,569 11,390 1,053,959
2021 995,000 26,119 5,697 1,026,816
$ 2,900,000 $ 840,263 $ 102,401 $ 3,842,664

The following table is a summary of the changes in the long-term debt for the year ended December 31, 2014:

Balance Balance
December 31, New December 31, Current
2013 Obligations Retired 2014 Portion

2004 SRF Revenue Bonds Payable $ 9,300,000 $ - $ 6,400,000 $ 2,900,000 $ -

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.

43
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014, are as follows:

Year Ended
December 31,
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 15,951,166
LESS AMOUNT REPRESENTING INTEREST (2,811,166)
PRINCIPAL BALANCE, DECEMBER 31, 2014 $ 13,140,000

The following schedule presents the changes in the long-term debt for the year ended December 31, 2014:

Balance Balance
December 31, December 31, Current
2013 Additions Retirements 2014 Portion

2006 Certificates of Participation $ 14,095,000 $ - $ 955,000 $ 13,140,000 $ 1,025,000
Compensated absences 218,885 - 25,234 193,651 -
$ 14,313,885 $ - $ 980,234 $ 13,333,651 $ 1,025,000

44
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014, based on the current rate, are due
as follows:

Year Ended
December 31, Principal Interest Total
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 67,324 8,142 75,466
2021 69,831 5,635 75,466
2022 72,431 3,035 75,466
2023 43,465 515 43,980
$ 555,052 $ 92,656 $ 647,708

The following table is a summary of the changes in the long-term debt for the year ended December 31, 2014:

Balance Balance
December 31, December 31, Current
2013 Additions Retirements 2014 Portion
2008 Certificate of Participation $ 609,114 $ - $ 54,062 $ 555,052 $ 56,076
Compensated absences 91,972 - 2,192 89,780 -
$ 701,086 $ - $ 56,254 $ 644,832 $ 56,076

45
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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
2015 $ 30,000
2016 30,000
2017 30,000
2018 12,500
$ 102,500

The summary of changes in the loan for the year ended December 31, 2014, is as follows:

Balance, December 31, 2013 $ 132,500
Additions -
Deletions (30,000)
Balance, December 31, 2014 $ 102,500

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.

46
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014, are as follows:

Year Ended
December 31, Principal
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 1,465,497
LESS AMOUNT REPRESENTING INTEREST (415,497)
PRINCIPAL BALANCE, DECEMBER 31, 2014 $ 1,050,000

The following schedule presents the changes in the long-term debt for the year ended December 31, 2014:

Balance Balance
December 31, December 31, Current
2013 Additions Retirements 2014 Portion
2010 Certificates of Participation $ 1,120,000 $ - $ 70,000 $ 1,050,000 $ 75,000

47
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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

At December 31, 2014, 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, 2014, the balance on
the line of credit was $200,000. Interest of $550 was paid in the current year.

NOTE N – MORTGAGE PAYABLE – DORGAN-WEAVER HOUSING CORPORATION

As of December 31, 2014, 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, 2014:

Balance, December 31, 2013 $ 1,531,400
Additions -
Repayments -
Balance, December 31, 2014 $ 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.

48
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014, only
$15,590,000 of these bonds has been issued.

NOTE Q – INTERFUND TRANSFERS

Interfund transfers for the year ended December 31, 2014, consisted of the following:

Transfers
In (Out)
General Fund $ 235,302
Road and Bridge Fund 51,075
Law Enforcement Sales Tax Fund 1,248,439
Sewer Sales Tax Fund (1,348,439)
Assessment Fund 1,962
Tax Maintenance Fund (20,000)
E-911 Fund (56,066)
Prosecuting Attorney Bad Check Fund (17,500)
Recorder Tech Fund (72,409)
Transfer Station Fund (22,364)
$ -

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.

49
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2014

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, 2014, the
Reserve Account balance was $1,926,065.

NOTE S – COMMITMENTS

At December 31, 2014, the County was committed to the following contracts:

 Carson-Mitchell, Inc. for the Tri-lakes Biosolids Facility project, in the amount of $1,223,008
 The Wilson Group for the Road & Bridge Shop Building project, in the amount of $282,679
 The City of Forsyth for reimbursement for waste water treatment plant upgrades, in the amount
of $363,339
 The City of Hollister for reimbursement for waste water treatment plant upgrades, in the amount
of $66,018

NOTE T – COMMITMENTS – TANEY COUNTY REGIONAL SEWER DISTRICT

The District was committed to contracts for utility improvements with the following as of December 31, 2014:

 Ace Pipe Cleaning, Inc. in the amount of $250,007
 Excel Excavating, in the amount of $30,908
 Tom Boyce Excavating, in the amount of $86,977

50
SUPPLEMENTARY INFORMATION
TANEY COUNTY, MISSOURI
SCHEDULE OF FUNDING PROGRESS
Year Ended December 31, 2014

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

2/29/2012 $ 12,029,405 $ 14,217,025 $ 2,187,620 85% $ 8,808,205 25%
2/28/2013# 13,720,946 19,759,054 6,038,108 69% 8,964,337 67%
2/28/2014 15,987,761 21,420,711 5,432,950 75% 9,244,209 59%
# 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, 2014

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

2/29/2012 $ 999 $ 27,965 $ 26,966 4% $ 88,481 30%
2/28/2013 31,630 70,456 38,456 45% 244,011 16%
2/28/2014 74,489 98,557 24,068 76% 263,013 9%

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, 2014

Variance
Original Final With Final
RECEIPTS Budget Budget Actual Budget
Taxes
County sales tax $ 7,010,000 $ 7,010,000 $ 7,184,406 $ 174,406
Surtax 8,800 8,800 9,877 1,077
Payment in lieu of taxes 135,000 135,000 143,932 8,932
7,153,800 7,153,800 7,338,215 184,415
Collector's Commission
Collection commissions 702,500 702,500 838,687 136,187
Licenses and Permits
Beverage licenses 70,000 70,000 68,339 (1,661)
ATV permits 500 500 1,125 625
70,500 70,500 69,464 (1,036)
Intergovernmental Revenues
Federal 4,014,000 4,014,000 2,632,127 (1,381,873)
Other 16,700 16,700 20,107 3,407
4,030,700 4,030,700 2,652,234 (1,378,466)
Fees and Charges
Court 72,000 72,000 72,417 417
Public administration 50,000 50,000 66,095 16,095
County clerk 750 750 870 120
Recorder of deeds 1,050,000 1,050,000 1,114,770 64,770
Tax sale publication 15,000 15,000 17,224 2,224
Planning and zoning 20,000 20,000 21,860 1,860
Sheriff fees 970,000 970,000 371,524 (598,476)
Phone and vending 750 750 514 (236)
Election reimbursement 80,000 80,000 50,887 (29,113)
Computer room 1,000 1,000 1,088 88
Airport 852,683 852,683 730,709 (121,974)
3,112,183 3,112,183 2,447,958 (664,225)
Other
Interest income 50,000 50,000 72,977 22,977
Miscellaneous 61,600 61,600 275,464 213,864
Sale of property 5,000 5,000 26,591 21,591
116,600 116,600 375,032 258,432
TOTAL RECEIPTS 15,186,283 15,186,283 13,721,590 (1,464,693)
DISBURSEMENTS
Current
General Government
University extension 46,658 46,658 46,658 -
Collector of revenue 226,175 226,175 240,529 (14,354)
Treasurer 102,312 102,312 95,838 6,474
Recorder of deeds 255,982 255,982 277,813 (21,831)
County commission 944,600 944,600 201,881 742,719
Employee fringe benefits 2,216,500 2,216,500 2,090,651 125,849
Information technology 386,750 386,750 379,973 6,777
Planning and zoning 213,618 213,618 202,422 11,196
Election and voter registration 198,475 198,475 168,984 29,491
County clerk 136,744 136,744 134,613 2,131
Auditor 128,437 128,437 125,359 3,078
Building and grounds 623,476 623,476 707,876 (84,400)
5,479,727 5,479,727 4,672,597 807,130

54
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – GENERAL FUND – MODIFIED CASH BASIS (continued)
Year Ended December 31, 2014

Variance
Original Final With Final
Budget Budget Actual Budget
Judicial
Court administration 45,590 45,590 28,622 16,968
Circuit judge 59,114 59,114 92,087 (32,973)
Circuit clerk 74,250 74,250 61,645 12,605
Coroner 57,750 57,750 92,775 (35,025)
Court reporter 143,844 143,844 108,032 35,812
Public administrator 97,263 97,263 103,194 (5,931)
Juvenile 162,453 162,453 171,308 (8,855)
Prosecuting attorney 606,034 606,034 603,595 2,439
1,246,298 1,246,298 1,261,258 (14,960)
Public Safety
Sheriff 1,971,526 1,971,526 2,422,259 (450,733)
Jail 1,457,268 1,457,268 1,509,542 (52,274)
Animal control 200,000 200,000 222,521 (22,521)
Emergency management 58,243 58,243 62,662 (4,419)
3,687,037 3,687,037 4,216,984 (529,947)
Other 7,416,379 7,416,379 4,261,583 3,154,796
Public Works
Industrial Development Board 76,600 76,600 55,000 21,600
Airport
Airport 847,643 847,643 793,196 54,447
TOTAL DISBURSEMENTS 18,753,684 18,753,684 15,260,618 3,493,066
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (3,567,401) (3,567,401) (1,539,028) 2,028,373
OTHER FINANCING
SOURCES (USES)
Operating transfers (out) (310,000) (310,000) (61,963) 248,037
Operating transfers in 428,000 428,000 297,265 (130,735)
TOTAL OTHER FINANCING
SOURCES (USES) 118,000 118,000 235,302 117,302
(DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (3,449,401) (3,449,401) (1,303,726) 2,145,675
FUND BALANCE, January 1 9,842,039 9,842,039 9,842,039 -
FUND BALANCE, December 31 $ 6,392,638 $ 6,392,638 $ 8,538,313 $ 2,145,675

55
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – ROAD AND BRIDGE TRUST FUND – MODIFIED CASH
BASIS
Year Ended December 31, 2014

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 8,155,000 $ 8,155,000 $ 8,481,418 $ 326,418
Intergovernmental receipts 182,750 182,750 236,604 53,854
Other receipts 111,700 111,700 197,323 85,623
TOTAL RECEIPTS 8,449,450 8,449,450 8,915,345 465,895
DISBURSEMENTS
Highway and Roads
Wages and benefits 3,164,700 3,164,700 2,874,665 290,035
Computer related disbursements 15,000 15,000 10,295 4,705
Mileage and training 3,000 3,000 923 2,077
Professional services 120,500 120,500 18,386 102,114
Rental equipment 10,000 10,000 4,073 5,927
Telephone and utilities 50,500 50,500 62,893 (12,393)
Insurance 130,000 130,000 112,665 17,335
Repair and maintenance 420,000 420,000 485,057 (65,057)
Equipment 561,500 561,500 567,957 (6,457)
Road construction 2,139,000 2,139,000 1,026,833 1,112,167
Road supplies 1,878,500 1,878,500 2,110,886 (232,386)
Other supplies 520,250 520,250 529,257 (9,007)
Other 1,021,850 1,021,850 63,307 958,543
TOTAL DISBURSEMENTS 10,034,800 10,034,800 7,867,197 2,167,603
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (1,585,350) (1,585,350) 1,048,148 2,633,498
OTHER FINANCING SOURCES
Operating transfers in 25,000 25,000 51,075 26,075
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES
OVER DISBURSEMENTS (1,560,350) (1,560,350) 1,099,223 2,659,573
FUND BALANCE, January 1 10,410,417 10,410,417 10,410,417 -
FUND BALANCE, December 31 $ 8,850,067 $ 8,850,067 $ 11,509,640 $ 2,659,573

56
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – LAW ENFORCEMENT SALES TAX FUND – MODIFIED
CASH BASIS
Year Ended December 31, 2014

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 1,675,000 $ 1,675,000 $ 1,791,417 $ 116,417
Other receipts 1,500 1,500 4,987 3,487
TOTAL RECEIPTS 1,676,500 1,676,500 1,796,404 119,904

DISBURSEMENTS
Debt service 1,727,000 1,727,000 1,707,683 19,317
TOTAL DISBURSEMENTS 1,727,000 1,727,000 1,707,683 19,317
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (50,500) (50,500) 88,721 139,221
OTHER FINANCING SOURCES
Operating transfers in - - 1,248,439 1,248,439
TOTAL OTHER
FINANCING SOURCES - - 1,248,439 1,248,439
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES
OVER DISBURSEMENTS (50,500) (50,500) 1,337,160 1,387,660
FUND BALANCE, January 1 82,160 82,160 82,160 -
FUND BALANCE, December 31 $ 31,660 $ 31,660 $ 1,419,320 $ 1,387,660

57
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE – COUNTY SEWER SALES TAX FUND – MODIFIED CASH
BASIS
Year Ended December 31, 2014

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 7,000,000 $ 7,000,000 $ 7,172,704 $ 172,704
Intergovernmental 3,000,000 3,000,000 2,111,189 (888,811)
Other receipts 105,000 105,000 192,532 87,532
TOTAL RECEIPTS 10,105,000 10,105,000 9,476,425 (628,575)
DISBURSEMENTS
Sewer 20,818,200 20,818,200 9,747,577 11,070,623
TOTAL DISBURSEMENTS 20,818,200 20,818,200 9,747,577 11,070,623
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (10,713,200) (10,713,200) (271,152) 10,442,048
OTHER FINANCING SOURCES (USES)
Operating transfers in 1,250,000 1,250,000 - (1,250,000)
Operating transfers (out) (100,000) (100,000) (1,348,439) (1,248,439)
TOTAL OTHER FINANCING
SOURCES (USES) 1,150,000 1,150,000 (1,348,439) (2,498,439)
(DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (9,563,200) (9,563,200) (1,619,591) 7,943,609
FUND BALANCE, January 1 25,209,601 25,209,601 25,209,601 -
FUND BALANCE, December 31 $ 15,646,401 $ 15,646,401 $ 23,590,010 $ 7,943,609

58
TANEY COUNTY, MISSOURI
NOTE TO BUDGETARY COMPARISON SCHEDULES
December 31, 2014

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.

59
OTHER FINANCIAL INFORMATION
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES – NON-MAJOR SPECIAL REVENUE FUNDS – MODIFIED CASH BASIS
December 31, 2014

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 $ 203,014 $ 2,421 $ 2,549 $ 96,543 $ 116,814 $ 81,197 $ 34,217 $ 3,055 $ 68,640 $ 5,146
TOTAL ASSETS $ 203,014 $ 2,421 $ 2,549 $ 96,543 $ 116,814 $ 81,197 $ 34,217 $ 3,055 $ 68,640 $ 5,146
FUND BALANCES
Restricted for:
Public safety $ - $ 2,421 $ - $ 96,543 $ - $ - $ 34,217 $ 3,055 $ - $ 5,146
Elections - - - - - - - - - -
Recorder - - - - - - - - - -
Judicial - - 2,549 - - 81,197 - - 68,640 -
Tax maintenance - - - - 116,814 - - - - -
Assigned
Assessment 203,014 - - - - - - - - -
TOTAL FUND BALANCES $ 203,014 $ 2,421 $ 2,549 $ 96,543 $ 116,814 $ 81,197 $ 34,217 $ 3,055 $ 68,640 $ 5,146

61
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES – NON-MAJOR SPECIAL REVENUE FUNDS – MODIFIED CASH BASIS
(continued)
December 31, 2014

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 $ 6,836 $ 31,375 $ 413,572 $ 55,889 $ 7,780 $ 89,448 $ 57,868 $ 53,656 $ 6,822 $ 1,336,842
TOTAL ASSETS $ 6,836 $ 31,375 $ 413,572 $ 55,889 $ 7,780 $ 89,448 $ 57,868 $ 53,656 $ 6,822 $ 1,336,842
FUND BALANCES
Restricted for:
Public safety $ 6,836 $ - $ - $ - $ 7,780 $ 89,448 $ 57,868 $ - $ - $ 303,314
Elections - 31,375 - - - - - - - 31,375
Recorder - - 413,572 - - - - - - 413,572
Judicial - - - 55,889 - - - 53,656 6,822 268,753
Tax maintenance - - - - - - - - - 116,814
Assigned
Assessment - - - - - - - - - 203,014
TOTAL FUND BALANCES $ 6,836 $ 31,375 $ 413,572 $ 55,889 $ 7,780 $ 89,448 $ 57,868 $ 53,656 $ 6,822 $ 1,336,842

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, 2014

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 $ - $ - $ - $ 455,506 $ - $ - $ - $ - $ - $ -
Intergovernmental receipts - - - - - - - 4,451 - -
Fees and charges 738,727 4,340 1,104 370 121,750 9,350 50,110 - 69,066 -
Other receipts 2,458 2,297 23 1,070 1,150 606 1,514 14 1,441 21
TOTAL RECEIPTS 741,185 6,637 1,127 456,946 122,900 9,956 51,624 4,465 70,507 21
DISBURSEMENTS
Current
General government 668,808 - - - 107,113 10,436 - - - -
Judicial - - 2,565 - - - - - 51,539 -
Public safety - 7,372 - 458,658 - - 86,643 1,410 - 300
TOTAL DISBURSEMENTS 668,808 7,372 2,565 458,658 107,113 10,436 86,643 1,410 51,539 300
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS 72,377 (735) (1,438) (1,712) 15,787 (480) (35,019) 3,055 18,968 (279)
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) 1,962 - - (56,066) (20,000) - - - (17,500) -
TOTAL OTHER FINANCING
SOURCES (USES) 1,962 - - (56,066) (20,000) - - - (17,500) -
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) 74,339 (735) (1,438) (57,778) (4,213) (480) (35,019) 3,055 1,468 (279)
FUND BALANCE, January 1 128,675 3,156 3,987 154,321 121,027 81,677 69,236 - 67,172 5,425
FUND BALANCE, December 31 $ 203,014 $ 2,421 $ 2,549 $ 96,543 $ 116,814 $ 81,197 $ 34,217 $ 3,055 $ 68,640 $ 5,146

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, 2014

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 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 455,506
Intergovernmental receipts - 5,605 - - - - - - - 10,056
Fees and charges - 13,713 234,385 11,947 7,751 43,766 158,760 2,017 - 1,467,156
Other receipts 77 4,952 3,549 143 29 660 440 134 - 20,578
TOTAL RECEIPTS 77 24,270 237,934 12,090 7,780 44,426 159,200 2,151 - 1,953,296
DISBURSEMENTS
Current
General government - 33,448 226,886 - - - - 298 - 1,046,989
Judicial - - - 12,695 - - - - 1,004 67,803
Public safety 6,178 - - - 9,277 41,968 128,270 - - 740,076
TOTAL DISBURSEMENTS 6,178 33,448 226,886 12,695 9,277 41,968 128,270 298 1,004 1,854,868
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (6,101) (9,178) 11,048 (605) (1,497) 2,458 30,930 1,853 (1,004) 98,428
OTHER FINANCING
SOURCES (USES)
Operating transfers in (out) - - (72,409) - - - - - - (164,013)

TOTAL OTHER FINANCING
SOURCES (USES) - - (72,409) - - - - - - (164,013)
EXCESS (DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (6,101) (9,178) (61,361) (605) (1,497) 2,458 30,930 1,853 (1,004) (65,585)
FUND BALANCE, January 1 12,937 40,553 474,933 56,494 9,277 86,990 26,938 51,803 7,826 1,402,427
FUND BALANCE, December 31 $ 6,836 $ 31,375 $ 413,572 $ 55,889 $ 7,780 $ 89,448 $ 57,868 $ 53,656 $ 6,822 $ 1,336,842

64
 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, each major fund and the aggregate remaining fund information of Taney County, Missouri, as of and
for the year ended December 31, 2014, and the related notes to the financial statements, which collectively
comprise Taney County, Missouri’s basic financial statements and have issued our report dated May 18, 2015.

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 the County’s internal control.

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 County’s financial
statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.

www.kpmcpa.com
1445 E. Republic Road, Springfield, MO 65804 | 417-882-4300 | fax 417-882-4343
500 W. Main Street Suite 200, Branson, MO 65616 | 417-334-2987 | fax 417-336-3403
Member CPA Associates International, Inc., with offices in principal U.S. and international cities 65
Taney County Commission
Taney County
Forsyth, Missouri

Our consideration of the internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in the internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may
exist that have not been identified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether Taney County, Missouri's financial statements are free
from 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.

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
Springfield, Missouri
May 18, 2015

66
 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133

Taney County Commission
Taney County
Forsyth, Missouri

Compliance

We have audited Taney County, Missouri’s compliance with the types of compliance requirements described in
the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on the County’s
major federal programs for the year ended December 31, 2014. Taney County, Missouri's major federal
programs are identified in the summary of audit results section of the accompanying schedule of findings and
questioned costs.

Management’s Responsibility

Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its federal programs.

Auditors’ Responsibility

Our responsibility is to express an opinion on compliance for Taney County, Missouri’s major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to
above that could have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about the County's compliance with those requirements and performing
such other procedures as we consider necessary in the circumstances.

www.kpmcpa.com
1445 E. Republic Road, Springfield, MO 65804 | 417-882-4300 | fax 417-882-4343
500 W. Main Street Suite 200, Branson, MO 65616 | 417-334-2987 | fax 417-336-3403
Member CPA Associates International, Inc., with offices in principal U.S. and international cities 67
Taney County Commission
Taney County
Forsyth, Missouri

We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal
programs. However, our audit does not provide a legal determination on Taney County, Missouri's compliance.

Opinion on Each Major Federal Program

In our opinion, Taney County, Missouri complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect on its major federal programs for the year ended
December 31, 2014.

Internal Control over Compliance

Management of Taney County, Missouri, is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal
programs. In planning and performing our audit, we considered the County's internal control over compliance
with requirements that could have a direct and material effect on a major federal program in order to determine
our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on
internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing
an opinion on the effectiveness of the County’s internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the County's internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal
program on a timely basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that
material noncompliance with a type of compliance requirement of a federal program will not be prevented, or
detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over compliance
that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above.
However, material weaknesses may exist that have not been identified.

68
Taney County Commission
Taney County
Forsyth, Missouri

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirement of OMB Circular A-
133. Accordingly, this report is not suitable for any other purpose.

KPM CPAs, PC
Springfield, Missouri
May 18, 2015

69
TANEY COUNTY, MISSOURI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Year Ended December 31, 2014

Federal Grantor Federal
Pass Through Grantor/ CFDA Pass-through Federal
Program Title Number Grantor's Number Expenditures
U.S. DEPARTMENT OF HOMELAND SECURITY
State of Missouri Emergency Management Agency
Emergency Management Performance Grant 97.042 EMW-2014-EP-00005-110 $ 20,975
Hazard Mitigation Grant 97.039 FEMA-4144-DR-MO 1,916,627
Missouri Department of Homeland Security
Homeland Security Grant Program 97.067 HSRRS 1,234
TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY 1,938,836
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Missouri Department of Economic Development
Community Development Block Grant 14.228 2011-EM-30 640,932
TOTAL U.S. DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT 640,932
U.S. DEPARTMENT OF INTERIOR
State of Missouri Treasurer's Office
Distribution of Receipts to State and Local Governments 15.227 N/A 250,980
Direct
Payment in Lieu of Taxes 15.226 N/A 143,932
TOTAL U.S. DEPARTMENT OF INTERIOR 394,912
U.S. DEPARTMENT OF JUSTICE
Direct
Bullet Proof Vest Partnership Grant 16.607 N/A 2,943
Missouri Sheriff Association
Domestic Cannabis Eradication Program 16.000 MSA-DCE-SP 7,000
TOTAL U.S. DEPARTMENT OF JUSTICE 9,943
U.S. DEPARTMENT OF DEFENSE
Direct
Cooperative Agreement 12.000 W91275-14-2-0046 4,384
Cooperative Agreement TRL-LETC-12 2,415
TOTAL U.S. DEPARTMENT OF DEFENSE 6,799
U.S. ELECTION ASSISTANCE COMMISSION
Missouri Secretary of State
Help America Vote Act Requirements 90.401 N/A 6,331
TOTAL U.S. ELECTION ASSISTANCE COMMISSION 6,331
U.S. ENVIRONMENTAL PROTECTION AGENCY
Missouri Department of Natural Resources
Capitalization Grants for Clean Water State Revolving Funds 66.458 C295538.01 2,161,692
TOTAL U.S. ENVIRONMENTAL PROTECTION AGENCY 2,161,692
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 5,159,445

N/A - Not Applicable

70
TANEY COUNTY, MISSOURI
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued)
Year Ended December 31, 2014

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

1. The Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which
is described in Note A to the City's financial statements.

2. The County did not provide funds to subrecipients in the current year.

71
TANEY COUNTY, MISSOURI
SUMMARY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended December 31, 2014

A. SUMMARY OF AUDIT RESULTS

1. The auditors' report expresses an unmodified opinion on the basic financial statements presented on
the modified cash basis of accounting.

2. No significant deficiencies were disclosed during the audit of the financial statements.

3. No material weaknesses were disclosed during the audit of the financial statements.

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

5. No significant deficiencies or material weaknesses were disclosed during the audit of the major
federal awards programs.

6. The auditors' report on compliance for the major federal award programs expresses an unmodified
opinion.

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

8. The following were tested as major programs:
Hazard Mitigation Grant 97.039
Community Development Block Grant 14.228
Capitalization Grants for Clean Water State Revolving Funds 66.458

9. The threshold to determine a Type A program was $300,000.

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

B. FINDINGS - FINANCIAL STATEMENT AUDIT

None

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

None

72
TANEY COUNTY, MISSOURI
SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended December 31, 2014

There were no prior year audit findings.

73