2018 Audit Report

TANEY COUNTY, MISSOURI

BASIC FINANCIAL STATEMENTS

Year Ended December 31,2018
 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 B asis............................................................. .............. 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 o f Assets and Liabilities - Agency Funds - Modified Cash Basis....................................................23

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

SUPPLEMENTARY INFORMATION

Budgetary Comparison Schedule - General Fund ~ Modified Cash Basis........................................................ 53

Budgetary Comparison Schedule - Road and Bridge Trust Fund -
Modified Cash Basis........................................................................................................................................55

Budgetary Comparison Schedule - Road and Bridge 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 REPORTING REQUIREMENTS

Combining Statement of Assets and Fund Balances - Non-Major
Special Revenue Funds - Modified Cash B asis..........................................................................................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

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 Uirj^...\ Ld : J VH
CPAS a ADVISORS

INDEPENDENT AUDITORS* REPORT

Taney County Commission
Taney County
Forsyth, Missouri

Report on Financial Statements

I We have audited the accompanying financial statements of the governmental activities, business-type activities,
I 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, 2018, and the related notes to the financial
statements, which collectively comprise the County’s basic financial statements as listed in the table of
contents.

I 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
I 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
1 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 o f 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 J fax 417-882-4343
^ 500 W. Main Street, Suite 200 Branson, MO 65616 | 417-334-2987 | fax 417-336-3403
j Member of The Leading Edge Alliance 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

Tn 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,
2018, 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 on
pages 8-13 and budgetary comparison information on pages 53-59, which are the responsibility of management,
are presented for purposes of additional analysis and are not required parts of the basic financial statements.
Such information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we do not express an opinion or provide any assurance on it.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Taney County, Missouri’s basic financial statements. The Combining Nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic financial
statements.

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Taney County Commission
Taney County
Forsyth, Missouri

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

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated May 17, 2019, 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.

KPffi cP^ p^
KPM CPAs, PC
Springfield, Missouri
May 17, 2019

6
MANAGEMENT’S DISCUSSION AND ANALYSIS
 TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31,2018

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, 2018, 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 $8,173,627. Most of the decrease is a result
of a facility rebuild at the Transfer Station and the rebuild of a road and bridge maintenance bam.
These were capital improvements to help the economy improve and thrive.
• The fund balance for the General Fund decreased by $676,009. Most of this change is a result of
a higher volume of prisoners in the county and increasing costs to continue providing services to
the county citizens. The County will need to find more revenues to provide for this increase of
expenditures or decrease overall expenditures in the county.
• The fund balance for the Road and Bridge Fund is separated into two funds to better track capital
improvements; separating the funds makes it more difficult to see the total amount available to
spend on the County’s roads and bridges. The total decrease between both Road and Bridge
Funds was $2,344,497. This change is a result of over $2,8 million in capital improvements. The
new Transfer Station, utility barn, new bridges, and upkeep on roads should help the county’s
economy.

USING THIS ANNUAL REPORT

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

Report Components

Government-Wide Financial Statements: The Statement of Net 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.
TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2018

Supplementary Information: This Management’s Discussion and Analysis, pension information 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”).

O ther Reporting Requirements: 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, 2018

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
I 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.
i ;

• Proprietaiy 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,
2018 2017
ASSETS
Cash and investments S 35,817,603 $ 43,991,230
TOTAL ASSETS $ 35,817,603 $ 43,991,230
NET POSITION
Restricted $ 28,793,633 $ 35,662,277
Unrestricted 7,023,970 8,328,953
TOTAL NET POSITION $ 35,817,603 $ 43,991,230

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2018

Changes in Net Position - Modified Cash Basis

Year Ended December 31,
2018 2017
RECEIPTS
Program Receipts
Charges for services $ 5,811,341 $ 6,041,366
Operating grants and contributions 146,041 102,382
Capital grants and contributions 216,508 -

General Receipts
Sales tax receipts 26,176,945 25,875,070
Motor vehicle sales tax 1,330,343 1,353,921
Other taxes 827,156 895,866
Interest 551,567 538,081
Other receipts 372,170 993,986
TOTAL RECEIPTS 35,432,071 35,800,672
DISBURSEMENTS
General government 6,849,028 6,631,898
Judicial 1,363,872 1,281,131
Public safety 5,171,197 4,847,506
Public works 50,000 50,000
Highway and roads 11,740,446 10,414,348
Airport 490,412 439,871
Sewer 12,250,108 12,228,336
Debt service 2,415,276 2,198,203
Other 1,166,168 1,301,860
Transfer station 2,109,191 1,776,371
TOTAL DISBURSEMENTS 43,605,698 41,169,524
(DECREASE) IN NET POSITION $ (8,173,627) $ (5,368,852)

Overall receipts of the County decreased by $368,601 from the prior year. Tax revenues were up $209,587,
while charges for services were down $230,025. Overall disbursements of the County were up $2,436,174.

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2018

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 $676,009 for the year ended December 31, 2018.
• The Combined Road and Bridge Funds decreased by $2,344,497, which decreased the combined
fund balances to $11,422,661 as of December 31, 2018.
• The Law Enforcement Sales Tax Fund decreased by $377,204, which decreased the fund balance
to $1,236,159 as of December 31, 2018.
• County Sewer Sales Tax Fund decreased $3,984,036, which decreased the fund balance to
$15,053,848. The County expects to see this balance decrease dramatically in the near future
due to several major projects planned in the near future.

FINANCIAL ANALYSIS BUDGET VERSUS ACTUAL RESULTS - GENERAL FUND

___________ Budget___________
Original Final Actual
RECEIPTS
Taxes $ 8,190,000 $ 8,190,000 $ 8,323,723
Commissions 750,000 750,000 695,827
Licenses and permits 86,000 86,000 83,835
Intergovernmental receipts 63,500 63,500 81,911
Fees and charges 2,501,050 2,501,050 2,251,375
Other 226,850 226,850 265,834
TOTAL RECEIPTS $ 11,817,400 $ 11,817,400 $ 11,702,505
DISBURSEMENTS
General government $ 6,595,539 $ 6,595,539 $ 6,049,342
Judicial 1,346,107 1,346,107 1,243,945
Public safety 4,389,841 4,389,841 4,457,806
Public works 50,000 50,000 50,000
Other 2,233,950 2,233,950 1,166,168
Airport 441,896 441,896 490,412
TOTAL DISBURSEMENTS $ 15,057,333 $ 15,057,333 $ 13,457,673

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TANEY COUNTY, MISSOURI
MANAGEMENT’S DISCUSSION AND ANALYSIS
December 31, 2018

The County has always budgeted so that if there is a need that arises they are covered without having to revisit
the budget process. 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, have done a better job of applying expenses when they are actually
expended instead of using a contingency fund as an expense line. This should make the County’s budget more
accurate and help the County use it as a tool for controls.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

Taney County economy has improved and is hopeful to continue economic growth in 2019. The County has
made capital improvements to assist in this economic growth. Although, with economic growth come possible
need for more improvements in the county including sewer and capital improvement projects, and law
enforcement and jail expenditures.

The County administration has the task of keeping the County in good financial condition. There is a
realization that we have good balances in most funds, but also the realization that the many services needed will
be ever more costly. Major issues are the sewer capital improvements, ever increasing health costs, and more
costly law enforcement. The sewer capital improvements will cause our total balance to be lower but will
provide needed services to many constituents. The healthcare costs and law enforcement costs are necessary,
but make keeping the appropriate balances difficult. We are of the opinion as a county administration that
declining balances are something that needs to be monitored, but are hopeful that the major capital
improvements will improve our economy and tend to come back to us in following years due to growth. Most
of the declining balances are a direct result o f capital improvements.

CONTACTING THE COUNTY’S FINANCIAL MANAGEMENT

You may contact the Auditor’s office at P.O. Box 1606, Forsyth, MO 65653 for more information. The phone
number to contact is 417-546-7215.

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TANEY COUNTY, MISSOURI
STATEMENT OF NET POSITION - MODIFIED CASH BASIS
December 31, 2018

Primary Government Component Units
Taney Taney Develop- Dorgan- Combs-
Business- County County mentally Weaver Redfem Tantone Dignity
Governmental Type Regional Health Disabled Housing Apartments Industries Now
Activities Activities Total Sewer District Center Board Corporation Inc. Inc. Inc.
ASSETS

Cash and investments $ 35,352,536 $ 465,067 $ 35,817,603 $ 3,923,339 $ 1,393,066 $ 1,038,624 $ 85,664 $ 49,044 $ 102,851 $ 60,902

TOTAL ASSETS $ 35,352,536 $ 465,067 $ 35,817,603 $ 3,923,339 $ 1,393,066 $ 1,038,624 $ 85,664 $ 49,044 $ 102,851 $ 60,902

NET POSITION

Restricted $ 28,793,633 $ - $ 28,793,633 $ 1,510,151 $ 4,770 $ $ 84,120 $ 41,307 $ $
Unrestricted 6,558,903 465,067 7,023,970 2,413,188 1,388,296 1,038,624 1,544 7,737 102,851 60,902

TOTAL NET POSITION $ 35,352,536 $ 465,067 $ 35,817,603 $ 3,923,339 $ 1,393,066 $ 1,038,624 $ 85,664 $ 49,044 $ 102,851 $ 60,902

See accompanying notes.
14
TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS
Year Ended December 31,2018

Primary Government
N et (Disbursements), Receipts
Program Receipts and Changes in Net Position
Charges Operating Capital Business-
for Grants and Grants and Governmental Type
Functions/Proerams Disbursements Services Contributions Contributions Activities Activities Total
Primary Government
Governmental Activities
General government $ (6,849,028) S 2,680,729 $ 4,875 $ 16,675 $ (4,146,749) $ - $ (4,146,749)
Judicial (1,363,872) 189,884 2,515 - (1,171,473) - (1,171,473)
Public safety (5,171,197) 895,729 80,420 - (4,195,048) - (4,195,048)
Public works (50,000) - - - (50,000) - (50,000)
Highway and roads (11,740,446) - 57,031 199,833 (11,483,582) - (11,483,582)
Airport (490,412) 486,669 - - (3,743) - (3,743)
Sewer (12,250,108) - - - (12,250,108) - (12,250,108)
Debt service (2,415,276) - - - (2,415,276) - (2,415,276)
Other (1,166,168) 91,921 1,200 - (1,073,047) - (1,073,047)

TOTAL GOVERNMENTAL
ACTIVITIES (41,496,507) 4,344,932 146,041 216,508 (36,789,026) - (36,789,026)

Business-Type Activities
Transfer station (2,109,191) 1,466,409 - - (642,782) (642,782)

TOTAL BUSINESS-TYPE
ACTIVITIES (2,109,191) 1,466,409 - - - (642,782) (642,782)

TOTAL PRIMARY GOVERNMENT $ (43,605,698) $ 5,811,341 $ 146,041 $ 216,508 (36,789,026) (642,782) (37,431,808)

See accompanying notes.
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TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS (continued)
Year Ended December 31,2018

________________ 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 $ (9,428,087) $ 1,661,217 $ $ 8,356,309
Taney County Health Center (2,917,142) 705,413 751,305 -
Developmentally Disabled Board (2,920,243) 1,509,754 25,843
Dorgan-Weaver Housing Corp. (65,725) 67,240 - -
Combs-Redfem Apartments Inc. (63,694) 71,718 - -
Tantone Industries, Inc. (932,970) 337,149 628,756 -
Dignity N ow, Inc. (20,106) - 27,582 -

TOTAL COMPONENT UM TS $ (16,347,967) $ 4,352,491 $ 1,433,486 $ 8,356,309

General Receipts and Transfers:
Ad valorem taxes
Sales taxes 26,176,945 26,176,945
Motor vehicle sales taxes and gas taxes 1,330,343 1,330,343
Other taxes 827,156 827,156
Interest 543,654 7,913 551,567
Other receipts 347,193 24,977 372,170
Transfers 30,666 (30,666)

Total General Receipts and Transfers 29,255,957 2,224 29,258,181

Increase (Decrease) in Net Position (7,533,069) (640,558) (8,173,627)

Net Position, Beginning o f year 42,885,605 1,105,625 43,991,230

N et Position, End o f year $ 35,352,536 $ 465,067 $ 35,817,603

See accompanying notes.
16
TANEY COUNTY, MISSOURI
STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS (continued)
Year Ended December 31, 2018

Component Units
Net (Disbursements), Receipts and Changes in Net Position
Taney County Taney Develop- Dorgan- Combs-
Regional County mentally Weaver Redfem Tantone Dignity
Sewer Health Disabled Housing Apartments Industries Now
District Center Board Corporation Inc. Inc. Inc.
component units
Taney County Regional Sewer District $ 589,439 $ $ - $ $ $ - $
Taney County Health Center (1,460,424)
Developmental^ Disabled Board (1,384,646)
Dorgan-Weaver Housing Corp. 1,515
Combs-Redfem Apartments Inc. 8,024
Tantone Industries, Inc. 32,935
Dignity Now, Inc. 7,476

TOTAL COMPONENT UNITS 589,439 (1,460,424) (1,384,646) 1,515 8,024 32,935 7,476

General Receipts and Transfers:
Ad valorem taxes - 1,427,573 1,381,683 - - - -
Sales taxes - - . - - - -
Motor vehicle sales taxes and gas taxes - - - - - - -
Other taxes - - - - - - -
Interest 117,620 18,868 15,150 146 47 - -
Other receipts 78,006 51,468 213,331 . - - - 584
Transfers - - _ - - - -

Total General Receipts 195,626 1,497,909 1,610,164 146 47 _ 584

Increase (Decrease) in Net Position 785,065 37,485 225,518 1,661 8,071 32,935 8,060

Net Position, Beginning o f year 3,138.274 1,355,581 813,106 84,003 40,973 69,916 52,842

Net Position, End o f year $ 3,923,339 $ 1,393,066 $ 1,038,624 $ 85,664 $ 49,044 $ 102,851 $ 60,902

See accompanying notes.
17
TANEY COUNTY, MISSOURI
BALANCE SHEET - GOVERNMENTAL FUNDS - MODIFIED CASH BASIS
December 31, 2018

Special Revenue Funds
Law County Nonmajor
Road and Road and Enforcement Sewer Special Total
General Bridge Bridge Sales Tax Sales Tax Revenue Governmental
Fund Trust Fund Fund Fund Fund Funds Funds
ASSETS
Cash and investments $ 6,160,369 $ 9,714,910 $ 1,707,751 $ 1,236,159 $ 15,053,848 $ 1,479,499 $ 35,352,536
TOTAL ASSETS $ 6,160,369 $ 9,714,910 $ 1,707,751 $ 1,236,159 $ 15,053,848 $ 1,479,499 $ 35,352,536
FUND BALANCES
Fund Balances
Restricted for:
Road and Bridge $ $ 9,714,910 $ 1,707,751 $ $ $ $ 11,422,661
Public Safety - - - 1,236,159 - 308,834 1,544,993
Sewer - - 15,053,848 - 15,053,848
Elections - - - - - 34,346 34,346
Recorder - - - - - 383,603 383,603
Judicial - - - - - 267,097 267,097
Tax maintenance - - - - - 87,085 87,085
Assigned to:
Assessment Fund - - - - - 398,534 398,534
Unassigned 6,160,369 - - - - - 6,160,369
TOTAL FUND BALANCES $ 6,160,369 $ 9,714,910 $ 1,707,751 $ 1,236,159 $ 15,053,848 $ 1,479,499 $ 35,352,536

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, 2018

Special Revenue Funds
Law County
Road and Road and Enforcement Sewer Nonmajor Total
General Bridge Bridge Sales Tax Sales Tax Governmental Governmental
Fund Trust Fund Fund Fund Fund Funds Funds
RECEIPTS
Taxes $ 8,323,723 $ 7,946,924 $ 1,330,343 $ 2,024,303 $ 8,098,081 $ 611,070 $ 28,334,444
Collector's commission 695,827 - - - - - 695,827
Licenses and permits 83,835 - - - - - 83,835
Intergovernmental receipts 81,911 199,833 57,031 - - 23,774 362,549
Fees and chaiges 2.251,375 - - - 1313,895 3,565,270
Other 265,834 287,254 55,858 13,769 237,118 31,014 890,847
TOTAL RECEIPTS 11,702,505 8,434,011 1,443,232 2,038,072 8,335,199 1,979,753 33,932,772

DISBURSEMENTS
General government 6,049,342 - - - - 799,686 6.849,028
Judicial 1,243,945 - - - 119,927 1,363.872
Public safety 4,457,806 - - - - 713,391 5,171,197
Public works 50,000 - - - - - 50,000
Airport 490,412 - - - - - 490,412
Other 1,166,168 - - - - - 1,166,168
Highway and roads - 10,334,784 1,405,662 . - - 11,740,446
Sewer - - - - 12,250,108 - 12,250,108
Debt service - - - 2,415,276 - - 2,415,276

TOTAL DISBURSEMENTS 13,457,673 10,334,784 1,405,662 2,415,276 12,250,108 1,633,004 41,496,507

EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (1,755,168) (1,900,773) 37,570 (377,204) (3,914,909) 346,749 (7,563,735)

OTHER FINANCING SOURCES (USES)
Operating transfers in (out) 1,079,159 (256,805) (224,489) - (69,127) (498,072) 30,666

TOTAL OTHER FINANCING
SOURCES (USES) 1,079,159 (256,805) (224,489) - (69,127) (498,072) 30.666

(DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (676,009) (2,157,578) (186,919) (377,204) (3,984,036) (151,323) (7,533,069)

FUND BALANCE, January 1 6.836,378 11,872,488 1,894,670 1,613,363 19,037,884 1,630,822 42,885,605
FUND BALANCE, December 31 $ 6,160,369 $ 9.714,910 $ 1,707,751 $ 1,236,159 $ 15.053,848 $ 1,479.499 $ 35,352,536

See accompanying notes.
19
TANEY COUNTY, MISSOURI
STATEMENT OF NET POSITION - PROPRIETARY FUND - MODIFIED CASH BASIS
December 31, 2018

Enterprise
Fund
Transfer
Station Fund
ASSETS
Current Assets
Cash and cash equivalents $ 465,067
TOTAL ASSETS $ 465,067
Net Position
Unrestricted $ 465,067
TOTAL NET POSITION $ 465,067

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, 2018

Enterprise
_____Fund____
Transfer
Station Fund
OPERATING RECIEPTS
Charges for services $ 1,466,409
TOTAL OPERATING RECEIPTS 1,466,409
OPERATING DISBURSEMENTS
Insurance claims and disbursements 21,730
Salaries and employee benefits 497,749
Supplies 189,508
Telephone and utilities 3,347
Repair and maintenance 941,679
Landfill services 445,929
Other ________ 9,249
TOTAL OPERATING DISBURSEMENTS 2,109,191
OPERATING (LOSS) (642,782)
NONOPERATING RECEIPTS
Interest receipts 7,913
Other receipts _______ 24,977
TOTAL NONOPERATING RECEIPTS ________ 32,890
(LOSS) BEFORE OPERATING TRANSFERS (609,892)
Operating transfers (out) _______ (30,666)
NET (LOSS) (640,558)
NET POSITION, January 1 1,105,625
NET POSITION, December 31 $ 465,067

See accompanying notes.
21
TANEY COUNTY, MISSOURI
STATEMENT OF CASH FLOWS - PROPRIETARY FUND - MODIFIED CASH BASIS
Year Ended December 3 1, 2018

Enterprise
Fund
Transfer
Station Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1,491,386
Cash paid to suppliers (1,611,442)
Cash paid to employees (497,749)
NET CASH (USED) BY
OPERATING ACTIVITIES (617,805)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received ________7,913
NET CASH PROVIDED BY
INVESTING ACTIVITIES 7,913
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers (to) other funds (30,666)
NET CASH (USED) BY NONCAPITAL
FINANCING ACTIVITIES (30,666)
NET (DECREASE) IN CASH
AND CASH EQUIVALENTS (640,558)
CASH AND CASH EQUIVALENTS, Beginning of year 1,105,625
CASH AND CASH EQUIVALENTS, End of year $ 465,067

RECONCILIATION OF OPERATING (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
Operating (loss) $ (642,782)
Adjustments to reconcile operating loss
to net cash provided by operating activities:
Other receipts 24,977
NET CASH (USED) BY
OPERATING ACTIVITIES $ (617,805)

See accompanying notes.
22
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES - AGENCY FUNDS - MODIFIED CASH BASIS
December 31, 2018

Sheriffs Sheriffs Sheriffs Cities Land
Office Office Office Sheriff Collector Financial Sales
Transport General Bond Commissary of Revenue Institution Surplus
Fund Fund Fund Fund Fund Tax Fund Fund
ASSETS
Cash and investments $ 409 $ 9,856 $ 60 $ 46,429 $ 25,673,784 $ 26,553 $ 203,013
TOTAL ASSETS $ 409 $ 9,856 $ 60 $ 46,429 $ 25,673,784 $ 26,553 $ 203,013
LIABILITIES
Due to others $ $ - $ 60 $ 46,429 $ $ $
Due to other governments 409 9,856 - 25,673,784 26,553 203,013
TOTAL LIABILITIES $ 409 $ 9,856 $ 60 $ 46,429 $ 25,673,784 $ 26,553 $ 203,013

See accompanying notes.
23
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES - AGENCY FUNDS - MODIFIED CASH BASIS (continued)
December 31, 2018

Protest
Unclaimed Fines and P&Z National Circuit Recorder's Tax
Fee Forfeitures Bonds Forest Clerk User Fee Account
Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 20,258 $ 52,531 $ 213,847 $ 205,719 $ 103,227 $ 78,014 $ 180,135
TOTAL ASSETS S 20,258 $ 52,531 $ 213,847 $ 205,719 $ 103,227 $ 78,014 $ 180,135
LIABILITIES
Due to others $ 20,258 $ $ 213,847 $ $ $ $ 180,135
Due to other governments - 52,531 - 205,719 103,227 78,014 -

TOTAL LIABILITIES $ 20,258 $ 52,531 $ 213,847 $ 205,719 $ 103,227 $ 78,014 $ 180,135

See accompanying notes.
24
TANEY COUNTY, MISSOURI
STATEMENT OF ASSETS AND LIABILITIES - AGENCY FUNDS - MODIFIED CASH BASIS (continued)
December 31, 2018

OTC Prosecuting
Health Financial Senior Attorney
Center Handicapped School Institution Services Bad Check
Fund Fund Fund Tax Fund Fund Fund Total
ASSETS
Cash and investments $ 851 $ 606 $ 25,987 $ 325 $ 501,018 $ 16,134 $ 27,358,756
TOTAL ASSETS $ 851 $ 606 $ 25,987 $ 325 $ 501,018 $ 16,134 $ 27,358,756
LIABILITIES
Due to others $ $ $ $ $ $ 16,134 $ 476,863
Due to other governments 851 606 25,987 325 501,018 - 26,881,893
TOTAL LIABILITIES $ 851 $ 606 $ 25,987 $ 325 $ 501,018 $ 16,134 $ 27,358,756

See accompanying notes.
25
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

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, 2018

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-Redfem Apartments, Inc., which is governed by an appointed Board of Directors, provides housing
to developmentally disabled residents of Taney County. The CombS'Redfem 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, 2018

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Tantone Industries, Inc.

Tantone Industries, Inc., which is governed by an appointed Board of Directors, provides production
employment opportunities to lower range educable and upper range trainable developmentally disabled
residents of Taney County. Tantone Industries, 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.

Dignity Now, Inc.

Dignity Now, Inc., which is governed by an appointed Board of Directors, provides services and support for
children with developmental disabilities and their families. Dignity Now, 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.

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.

28
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The County reports the following major governmental funds:

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

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

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

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.

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.

29
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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.

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:

NonspendabJe 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.

30
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

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.

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.

Operating Receipts and Disbursements

Operating receipts and disbursements for the proprietary fund are those that result from providing services,
producing and delivering goods and services. All other receipts and disbursements are considered non­
operating.

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, 2018,
was $231,965.

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 prospectiveiy 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, 2018

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Pensions

Financial reporting information included in the notes to the financial statements pertaining to the County’s
participation in the State of Missouri County Employees’ Retirement Fund (CERF) is prepared in accordance
with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial
Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition fo r Contributions Made
Subsequent to the Measurement Date as applicable to the County’s modified cash basis of accounting

Financial reporting information included in the notes to the financial statements pertaining to the County’s
participation in the Missouri Local Government Employees’ Retirement System (LAGERS) is prepared in
accordance with Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and
Financial Reporting for Pensions, as amended by GASB Statement No. 71, Pension Transition fo r
Contributions Made Subsequent to the Measurement Date as applicable to the County’s modified cash basis of
accounting

The financial statements were prepared using the modified cash basis of accounting. Therefore, employee and
employer contributions are recognized when paid and the County’s net pension liability, deferred outflows and
inflows of resources related to pensions are not recorded in these financial statements.

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, 2018, 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;

32
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE B - CASH AND INVESTMENTS (continued)

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. government 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.

The County’s investments at December 31, 2018, are as follows:

____________ Investment Type____________ ______Maturity_____ Carrying Value Fair Value
Taney County
Certificates of Deposit 1/8/2019 - 11/29/2021 $ 29,995,000 $ 30,008,300

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, 2018, all Certificates of
Deposit are entirely insured or collateralized with securities.

33
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE B - CASH AND INVESTMENTS (continued)

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 wiil 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.

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, 2018, all bank
balances on deposit are entirely insured or collateralized.

The District’s investments at December 31, 2018, are as follows:

______________ Investment Type______________ ______ Maturity______ Fair Value
Certificate of Deposit 7/28/2019$220,403

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, 2018, 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, 2018, all bank balances
on deposit are entirely insured or collateralized.

34
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE B - CASH AND INVESTMENTS (continued)

The Center’s investments at December 31, 2018, are as follows:

_________________ Investment Type_________________ Maturity Fair Value
Certificate of Deposit 5/31/20 -7/31/20 _$_____ 70,681

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, 2018, 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, 2018, all bank balances
on deposit are entirely insured or collateralized.

Investments of the Board as of December 31, 2018, are as follows:

___________________ Investment Type___________________ Maturity Fair Value
Taney County Board for the Developmentally Disabled
Certificate of Deposit 3/23/2019 S 263,971
Certificate of Deposit 4/17/2019 257,378
$ 521,349

Diginity Now
Community Foundation of the Ozarks Investment Pool N/A 33,440

35
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

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 Board by the trust department
of a bank that does not hold the collateralized deposits. As of December 31, 2018, 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.

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, 2018,
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.

36
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE D - EMPLOYEE PENSION PLAN - CERF - PRIMARY GOVERNMENT

State of Missouri County Employees’ Retirement Fund

General Information about the Pension Plan

Plan Description. Taney County of Missouri’s defined benefit pension plan provides certain retirement and
death benefits to its members. The County participates in the State of Missouri County Employees’ Retirement
Fund (CERF). CERF is a mandatory cost-sharing multiple employer retirement system for each county in the
state of Missouri, except any city not within a county (which excludes the City of St. Louis) and counties of the
first classification with a charter form of government.

CERF covers county elective or appointive officers or employees whose position requires the actual
performance of duties not less than 1,000 hours per year; including employees of circuit courts located in a first
class, non-charter county which is not participating in the Local Government Employees Retirement System
(LAGERS); and does not cover circuit clerks, deputy circuit clerks, county prosecuting attorneys, and county
sheriffs. Until January 1, 2000, employees hired before January 1, 2000 could opt out of the system.

CERF was established by an act of the Missouri General Assembly effective August 28, 1994 and administered
in accordance with RSMo. 50.1000 - 50.1300. As such, it is CERF’s responsibility to administer the law in
accordance expressed intent of the General Assembly. The plan as amended through November 1, 2010 is in a
form acceptable under the Internal Revenue Code. The responsibility for the operations and administration of
CERF is vested in the CERF Board of Directors consisting of eleven members. The Board of Directors has the
authority to adopt rules and regulations for administering the system.

CERF issues a publicly available financial report that includes financial statements and required supplementary
information. This report may be obtained by accessing the CERF website at www.mocerf.org.

Benefits Provided. CERF provides retirement and death benefits to its members. All benefits vest after 8 years
of creditable service. Employees who retire on or after age 62 are entitled to an allowance for life based on the
form of payment selected. The normal form of payment is a single life annuity. Optional joint and survivor
annuity and 10-year certain and life annuity payments are also offered to members in order to provide benefits
to a named survivor annuitant after their death. Employees who have a minimum of 8 years of creditable
service and who terminate employment after December 31, 1999 may retire with an early retirement benefit and
receive a reduced allowance after attaining age 55. Benefit provisions are fixed by state statute and may be
amended only by action of the Missouri Legislature.

Cost-of-Living Adjustments (COLA). Annual cost-of-living adjustments not to exceed 1% are provided for
eligible retirees and survivor annuitants, up to a lifetime maximum of 50% and may be amended only by action
of Missouri Legislature.

37
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE D - EMPLOYEE PENSION PLAN - CERF - PRIMARY GOVERNMENT (continued)

Contributions, Prior to January 1, 2003, participating county employees, except for those who participated in
LAGERS, were required to make contributions equal to 2% of gross compensation. Effective January 1, 2003,
participated county employees hired on or after February 25, 2002 are required to make contributions of 4% if
they are in a LAGERS county and contributions of 6% if they are in a non-LAGERS county. If an employee
leaves covered employment before attaining 8 years of creditable service, accumulated employee contributions
are refunded to the employee. The contribution rate is set by state statute and may be amended only by action
of the Missouri Legislature. Counties may elect to make all or a portion of the required 4% contribution on
behalf of employees. Eligible employees of the employer contribute 4% to the pension plan. The employer did
not elect to make all or a portion of the required 4% contribution on behalf of employees.

In addition to the above contributions required of employees, the following fees and penalties prescribed under
Missouri law are required to be collected and remitted to CERF by counties covered by the plan:

• Late fees on filing of personal property tax declarations,
• Twenty dollars on each merchants and manufacturers license issued,
• Six dollars on each document recorded or filed with county recorders of deeds, with an additional one
dollar on each document recorded,
• Three sevenths of the fee on delinquent property taxes, and
• Interest earned on investment of the above collections prior to remittance to CERF

During 2018 and 2017 the County collected and remitted to CERF, employee contributions of $268,778 and
$247,939 , respectively, for the years then ended. The County’s contributions to CERF were $776,085 for the
year ended December 31, 2018.

NOTE E - EMPLOYEE PENSION PLAN - LAGERS - PRIMARY GOVERNMENT

Missouri Local Government Employees Retirement System

General Information about the Pension Plan

Plan Description. Taney County’s (which includes Taney County Health Department) defined benefit pension
plan provides certain retirement, disability and death benefits to plan members and beneficiaries. The County
participates in the Missouri Local Government Employees Retirement System (LAGERS). LAGERS is an
agent multiple-employer, statewide public employee pension plan established in 1967 and administered in
accordance with RSMo. 70.600-70.755. As such, it is LAGERS responsibility to administer the law in
accordance with the expressed intent of the General Assembly.

38
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE E - EMPLOYEE PENSION PLAN - LAGERS - PRIMARY GOVERNMENT (continued)

The plan is qualified under the Internal Revenue Code Section 401(a) and is tax exempt. The responsibility for
the operations and administration of LAGERS is vested in the LAGERS Board of Trustees consisting of seven
persons. LAGERS issues a publicly available financial report that includes financial statements and required
supplementary information, This report may be obtained by accessing the LAGERS website at
www.molagers.org.

Benefits Provided LAGERS provides retirement, death and disability benefits. Benefit provisions are adopted
by the governing body of the employer, within the options available in the state statutes governing LAGERS.
All benefits vest after 5 years of credited service. Employees who retire on or after age 60 (55 for police) with
5 or more years of service are entitled to an allowance for life based upon the benefit program information
provided below. Employees may retire with an early retirement benefit with a minimum of 5 years of credited
service and after attaining age 55 (50 for police) and receive a reduced allowance.

2018 Valuation
Benefit Multiplier 2.00% for life
Final Average Salary 5 Years
Member Contributions 0%

Benefit terms provide for annual post retirement adjustments to each member’s retirement allowance
subsequent to the member’s retirement date. The annual adjustment is based on the increase in the Consumer
Price Index and is limited to 4% per year.

Employees Covered by Benefit Terms. At June 30, 2018, the following employees were covered by the benefit
terms:

General Police Total
Inactive employees or beneficiaries currently receiving benefits 122 39 161
Inactive employees entitled to but not yet receiving benefits 94 24 118
Active employees 233 44 277
449 107 556

Contributions. The employer is required to contribute amounts as least equal to the actuarially determined rate,
as established by LAGERS using the individual entry-age actuarial method. The actuarially determined rate is
the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an
additional amount to finance an unfunded accrued liability. Full-time employees of the employer do not
contribute to the pension plan. Employer contributions are 14.7% (General) and 16.8% (Police) of annual
covered payroll.

During the year ended December 31, 2018 the County made contributions of $1,389,414 and the Taney County
Health Department made contributions of $228,348.
39
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31,2018

NOTE F - EMPLOYEE PENSION PLAN - LAGERS - TANEY COUNTY REGIONAL SEWER DISTRICT

Missouri Local Government Employees Retirement System

General Information about the Pension Plan

Plan Description. The Taney County Regional Sewer District’s defined benefit pension plan provides certain
retirement, disability and death benefits to plan members and beneficiaries. The Taney County Regional Sewer
District participates in the Missouri Local Government Employees Retirement System (LAGERS). LAGERS is
an agent multiple-employer, statewide public employee pension plan established in 1967 and administered in
accordance with RSMo. 70.600-70.755. As such, it is LAGERS 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 is tax exempt. The responsibility for the operations and administration of
LAGERS is vested in the LAGERS Board of Trustees consisting of seven persons. LAGERS issues a publicly
available financial report that includes financial statements and required supplementary information. This
report may be obtained by accessing the LAGERS website at www.molagers.org.

Benefits Provided. LAGERS provides retirement, death and disability benefits. Benefit provisions are adopted
by the governing body of the employer, within the options available in the state statutes governing LAGERS.
All benefits vest after 5 years of credited service. Employees who retire on or after age 60 with 5 or more years
of service are entitled to an allowance for life based upon the benefit program information provided below.
Employees may retire with an early retirement benefit with a minimum of 5 years of credited service and after
attaining age 55 and receive a reduced allowance.

2018 Valuation
Benefit Multiplier 1.50%
Final Average Salary 5 Years
Member Contributions 0%

Benefit terms provide for annual post retirement adjustments to each member’s retirement allowance
subsequent to the member’s retirement date. The annual adjustment is based on the increase in the Consumer
Price Index and is limited to 4% per year.

Employees Covered by Benefit Terms. At June 30, 2018, the following employees were covered by the benefit
terms:
General
Inactive employees or beneficiaries currently receiving benefits 1
Inactive employees entitled to but not yet receiving benefits 2
Active employees ________ 1J_
14

40
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

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

Contributions. The employer is required to contribute amounts at least equal to the actuarially determined rate,
as established by LAGERS using the individual entry-age actuarial method. The actuarially determined rate is
the estimated amount necessary to finance the cost of benefits earned by employees during the year, with an
additional amount to finance an unfunded accrued liability. Full-time employees of the employer do not
contribute to the pension plan. Employer contribution rates are 17.9% (General) of annual covered payroll.

During the year ended December 31, 2018, the Taney County Regional Sewer District made contributions of
$100,018.

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.

The 2018 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 $ 908,451,332
Personal property 156,915,822
$ 1,065,367,154
TAX LEVY
General Fund $ -

The legal debt margin at December 3 1, 2018, is computed as follows:

Constitutional debt limit $ 106,536,715
General obligation bonds payable -

LEGAL DEBT MARGIN $ 106,536,715

41
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

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

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, 2018, are due as follows:

Year Ended Administrative
December 31, Principal Interest Fee Total
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 5,696 1,026,815
$ 2,900,000 $ 231,263 $ 34,036 $ 3,165,299

The following table is a summary of the changes in the long-term debt for the year ended December 31, 2018:

Balance Balance
December 31, New December 31, Current
2017 Obligations Retired 2018 Portion

2004 SRF Revenue Bonds Payable $ 2,900,000 $_______ - $_______ - $ 2,900,000 $ 940,000

42
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE I - LONG-TERM DEBT - PRIMARY GOVERNMENT

On August 25, 2015, the County issued Lease Refunding Certificates of Participation Series 2015A and 2015B
for the purpose of an advance refunding of the Series 2006 Lease Certificates of Participation, which were
issued 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 $815,000 to $1,590,000 plus interest of 2.02%.
Principal payments are due April 1 of each year with interest due semi-annually on April 1 and October 1.

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

The total annual minimum lease payments required at December 31, 2018, are as follows:

Year Ended
December 31,
2019 $ 1,542,562
2020 1,579,181
2021 1,609,487
2022 1,638,581
2023 831,463
TOTAL MINIMUM LEASE PAYMENTS 7,201,274
LESS AMOUNT REPRESENTING INTEREST (391,274)
PRINCIPAL BALANCE, DECEMBER 31, 2018 $ 6,810,000

43
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

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

The following schedule presents the changes in the long-term debt for the year ended December 31, 2018:

Balance Balance

D ecem ber 31, D ecem ber 31, C urrent

2017 A dditions R etirem ents 2018 Portion

$ 8,165,000 $ $ 1,355,000 $ 6,810,000 $ 1,405,000

C om pensated absences 179,682 52,283 231,965

$ 8,344,682 $ 52,283 $ 1,355,000 $ 7,041,965 $ 1,405,000

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 I, 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, 2018, based on the current rate, are due
as follows:

Year Ended
December 31, Principal Interest ____ Total
2019 $ 64,892 $ 13,902 $ 78,794
2020 68,053 10,740 78,793
2021 71,438 7,356 78,794
2022 74,955 3,839 78,794
2023 38,850 546 39,396
$ 318,188 $ 36,383 $ 354,571

44
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

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

The following table is a summary of the changes in the long-term debt for the year ended December 31, 2018:

Balance Balance
December 31, December 31, Current
2017 Additions Retirements 2018 Portion
2008 Certificate of Participation $ 380,533 $ $ 62,345 $ 318,188 $ 64,892
Compensated absences 85,610 _ 15,032 70,578
$ 466,143 $ $ 77,377 $ 388,766 $ 64,892

NOTE K - 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.

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.

45
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE K - LEASE PAYABLE - BOARD FOR THE DEVELOPMENTALLY DISABLED (continued)

The lease agreement provides for the cancellation of the lease should the Board fail to appropriate lunds 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, 2018, are as follows:

Year Ended
December 31, Principal
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 922,514
LESS AMOUNT REPRESENTING INTEREST (187,514)
PRINCIPAL BALANCE, DECEMBER 31, 2018 $ 735,000

The following schedule presents the changes in the long-term debt for the year ended December 31, 2018:

Balance Balance
December 31, December 31, Current
2017 Additions Retirements 2018 Portion
2010 Certificates of Participation $820,000$___

46
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE L - LINE OF CREDIT - BOARD FOR THE DEVELOPMENTALLY DISABLED

At December 31, 2018, 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, 2018, $186,325 is
outstanding and was due on December 2, 2018. A total of $11,878 interest was paid in the current year.

The following schedule presents the changes in short-term debt for the year ended December 31, 2018:

Balance Balance
December 31, December 31
2017 Additions Deletions 2018
Line of Credit $ 199,683 $ $ 13 ,3 5 8 $ 1 8 6 ,3 2 5

NOTE M - MORTGAGE PAYABLE - DORGAN-WEAVER HOUSING CORPORATION

As of December 31, 2018, 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, 2018:

Balance, December 31,2017 $ 1,531,400
Additions
Repayments
Balance, December 31,2018 $ 1,531,400

47
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE N - MORTGAGE PAYABLE - COMBS-REDFERN APARTMENTS INC.

As of December 31, 2018, the Board had a mortgage payable of $2,054,431. 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.

Balance, December 31,2017 $ 2,054,431
Additions
Repayments ____________
Balance, December 31, 2018 $ 2,054,431

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, 2018

NOTE P - INTERFUND TRANSFERS

Interfund transfers for the year ended December 31, 2018, consisted of the following:

Transfers
In (Out)
General Fund $ 1,079,159
Road and Bridge Trust Fund (256,805)
Road and Bridge Fund (224,489)
Sewer Sales Tax Fund (69,127)
Assessment Fund (32,738)
Tax Maintenance Fund (30,000)
E-911 Fund (315,415)
Election Services Fund (10,000)
Recorder Tech Fund (109,919)
Transfer Station Fund (30,666)
$

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

NOTE Q - COMMITMENTS

At December 31, 2018, the County was committed to the following contracts:

• The City of Hollister for reimbursement for the WWTP Grit Removal System project
(construction phase) in the amount of $69,120.
• Hartman & Company, Inc. for the construction of the Coon Creek Bridge Replacement in the
amount of $311,362.

49
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE R - COMMITMENTS - TANEY COUNTY REGIONAL SEWER DISTRICT

As of December 31, 2018, the District was committed to Tom Boyce Excavating, in the amount of $302,647 for
utility improvements,

NOTE S - TAX ABATEMENTS

TANEY COUNY

As of December 31, 2018, the County was affected by tax abatement programs provided by the City of
Branson, Missouri and the City of Hollister, Missouri. Both the City of Branson, Missouri and the City of
Hollister, Missouri, provide tax abatements through the Real Property Tax Increment Allocation
Redevelopment Act (Tax Incremental Financing).

• Tax Incremental Financing (TIF) is an economic development tool which redirects local tax revenues
towards the redevelopment of eligible properties that are otherwise economically unfeasible. Sections
99.800 - 99.865, RSMo, the Real Property Tax Increment Allocation Redevelopment Act, enables cities
to finance certain redevelopment costs with the incremental tax revenue generated by the net increase in
assessed valuation resulting from the redevelopment. Real estate taxes in the redevelopment area are
frozen at the current level or base valuation.

Sales tax revenues were reduced by $2,658,746 and $281,295 under the Tax Incremental Financing Agreement
and by the City of Branson, Missouri and by the by the City of Hollister, Missouri, respectively.

TANEY COUNTY BOARD FOR THE DEVELOPMENTALLY DISABLED

As of December 31, 2018, the Board was affected by tax abatement programs provided by the City of Branson,
The City of Branson provided tax abatements through the Real Property Tax Increment Allocation
Redevelopment Act (Tax Incremental Financing).
• Tax Incremental Financing (TIF) is an economic development tool which redirects local tax revenues
towards the redevelopment of eligible properties that are otherwise economically unfeasible. Sections
99.800-99.865, RSMo, the Real Property Tax Increment Allocation Redevelopment Act, enables cities
to finance certain redevelopment costs with the incremental tax revenue generated by the net increase in
assessed valuation resulting from the redevelopment. Real estate taxes in the redevelopment area are
frozen at the current level or base valuation. Property tax revenues were reduced by $46,728 under the
Tax Incremental Financing Agreements entered into by the City of Branson, Missouri.

50
TANEY COUNTY, MISSOURI
NOTES TO FINANCIAL STATEMENTS
December 31, 2018

NOTE S - TAX ABATEMENTS (continued)

TANEY COUNTY HEALTH DEPARTMENT

As of December 31, 2018, the health department was affected by tax abatement programs provided by the City
of Branson. The City of Branson provided tax abatements through the Real Property Tax Increment Allocation
Redevelopment Act (Tax Incremental Financing).
• Tax Incremental Financing (TIF) is an economic development tool which redirects local tax revenues
towards the redevelopment of eligible properties that are otherwise economically unfeasible. Sections
99.800-99.865, RSMo, the Real Property Tax Increment Allocation Redevelopment Act, enables cities
to finance certain redevelopment costs with the incremental tax revenue generated by the net increase in
assessed valuation resulting from the redevelopment. Real estate taxes in the redevelopment area are
frozen at the current level or base valuation. Property tax revenues were reduced by $65,606 under the
Tax Incremental Financing Agreements entered into by the City of Branson, Missouri.

NOTE T - CONTINGENCIES

The County and the Branson, Missouri Regional Airport Transportation Development District signed a loss
mitigation guarantee with the Branson Airport. The County agrees to mitigate any loss of the airline contracted
with the Branson Airport for a term of three years, ending February 22, 2019, up to $400,000. If mitigation loss
guarantee funds have already been paid and the contracted airline generates a net gain before the end of this
agreement, amounts will be refunded to other sources and then the County.

51
SUPPLEMENTARY INFORMATION
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND - MODIFIED CASH BASIS
Year Ended December 31, 2018

Variance
Original Final With Final
RECEIPTS Budget Budget Actual Budget
Taxes
County sales tax $ 8,010,000 $ 8,010,000 $ 8,107,637 $ 97,637
Surtax 10,000 10,000 9,476 (524)
Payment in lieu of taxes 170,000 170,000 206,610 36,610
8,190,000 8,190,000 8,323,723 133,723
Collector’s Commission
Collection commissions 750,000 750,000 695,827 (54,173)
Licenses and Permits
Beverage licenses 85,000 85,000 83,115 (1,885)
ATV permits 1,000 1,000 720 (280)
86,000 86,000 83,835 (2,165)
Intergovernmental Receipts
Federal 63,000 63,000 69,625 6,625
Other 500 500 12,286 11,786
63,500 63,500 81,911 18,411
Fees and Charges
Court 78,000 78,000 67,508 (10,492)
Public administration 70,000 70,000 60,798 (9,202)
County clerk 750 750 999 249
Recorder of deeds 750,000 750,000 806,221 56,221
Tax sale publication 18,000 18,000 17,700 (300)
Planning and zoning 30,000 30,000 27,842 (2,158)
Sheriff fees 1,087,500 1,087,500 643,803 (443,697)
Phone and vending 1,050 1,050 1,037 (13)
Election reimbursement 25,000 25,000 45,566 20,566
Computer room 750 750 1,311 561
Animal Control - - 91,921 91,921
Airport 440,000 440,000 486,669 46,669
2,501,050 2,501,050 2,251,375 (249,675)
Other
Interest income 75,000 75,000 91,588 16,588
Miscellaneous 101,850 101,850 173,471 71,621
Sale of property 50,000 50,000 775 (49,225)
226,850 226,850 265,834 38,984
TOTAL RECEIPTS 11,817,400 11,817,400 11,702,505 (114,895)
DISBURSEMENTS
Current
General Government
University extension 44,266 44,266 44,266 -
Collector o f revenue 261,203 261,203 241,401 19,802
Treasurer 120,614 120,614 116,615 3,999
Recorder o f deeds 276,261 276,261 296,290 (20,029)
County commission 743,905 743,905 239,610 504,295
Administrative office 656,738 656,738 732,529 (75,791)
Employee fringe benefits 2,732,000 2,732,000 2,693,866 38,134
Information technology 393,645 393,645 365,592 28,053
Planning and zoning 189,037 189,037 182,881 6,156
Election and voter registration 185,725 185,725 157,597 28,128
County clerk 183,174 183,174 187,033 (3,859)
Auditor 107,221 107,221 105,612 1,609
Building and grounds 701,750 701,750 686,050 15,700
6,595,539 6,595,539 6,049,342 546,197

53
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND - MODIFIED CASH BASIS (continued)
Year Ended December 31, 2018

Variance
Original Final With Final
Budget Budget Actual Budget

Judicial
Court administration 50,300 50,300 11,656 38,644
Circuit judge 148,500 148,500 149,672 (1,172)
Circuit clerk 30,550 30,550 24,065 6,485
Coroner 87,450 87,450 85,866 1,584
Court reporter 7,000 7,000 4,396 2,604
Public administrator 133,062 133,062 127,684 5,378
Juvenile 263,149 263,149 230,658 32,491
Prosecuting attorney 626,096 626,096 609,948 16,148

1,346,107 1,346,107 1,243,945 102,162
Public Safety
Sheriff 2,586,156 2,586,156 2,598,436 (12,280)
Jail 1,531,928 1,531,928 1,583,070 (51,142)
Animal control 200,000 200,000 210,581 (10,581)
Emergency management 71,757 71,757 65,719 6,038

4,389,841 4,389,841 4,457,806 (67,965)

Other 2,233,950 2,233,950 1,166,168 1,067,782

Public Works
Industrial Development Board 50,000 50,000 50,000 -

Airport
Airport 441,896 441,896 490,412 (48,516)

TOTAL DISBURSEMENTS 15,057,333 15,057,333 13,457,673 1,599,660

(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (3,239,933) (3,239,933) (1,755,168) 1,484,765

OTHER FINANCING
SOURCES
Operating transfers in 846,240 846,240 1,079,159 232,919

TOTAL OTHER FINANCING
SOURCES 846,240 846,240 1,079,159 232,919

(DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS (2,393,693) (2,393,693) (676,009) 1,717,684

FUND BALANCE, January 1 6,836,378 6,836,378 6,836,378 -

FUND BALANCE, December 31 $ 4,442,685 $ 4,442,685 $ 6,160,369 $ 1,717,684

54
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE - ROAD AND BRIDGE TRUST FUND - MODIFIED CASH
BASIS
Year Ended December 31, 2018

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 8,000,000 $ 8,000,000 $ 7,946,924 $ (53,076)
Intergovernmental receipts 375,000 375,000 199,833 (175,167)
Other receipts 125,000 125,000 287,254 162,254
TOTAL RECEIPTS 8,500,000 8,500,000 8,434,011 (65,989)
DISBURSEMENTS
Highway and Roads
Wages and benefits 2,780,000 2,780,000 2,514,876 265,124
Computer related disbursements 36,000 36,000 39,135 (3,135)
Mileage and training 10,000 10,000 2,871 7,129
Professional services 80,000 80,000 79,994 6
Rental equipment 10,000 10,000 8,906 1,094
Telephone and utilities 63,000 63,000 65,676 (2,676)
Insurance 130,000 130,000 155,501 (25,501)
Repair and maintenance 430,000 430,000 538,210 (108,210)
Equipment 754,000 754,000 481,978 272,022
Road construction 5,039,000 5,039,000 3,796,401 1,242,599
Road supplies 2,559,500 2,559,500 2,119,244 440,256
Other supplies 505,300 505,300 520,293 (14,993)
Other 1,016,900 1,016,900 11,699 1,005,201
TOTAL DISBURSEMENTS 13,413,700 13,413,700 10,334,784 3,078,916
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (4,913,700) (4,913,700) (1,900,773) 3,012,927
OTHER FINANCING SOURCES (USES)
Operating transfers in 75,000 75,000 - (75,000)
Operating transfers out (244,965) (244,965) (256,805) (11,840)
TOTAL OTHER FINANCING
SOURCES (USES) (169,965) (169,965) (256,805) (86,840)
(DEFICIT) OF RECEIPTS
AND OTHER SOURCES OVER
DISBURSEMENTS AND OTHER (USES) (5,083,665) (5,083,665) (2,157,578) 2,926,087
FUND BALANCE, January i 11,872,488 11,872,488 11,872,488 -

FUND BALANCE, December 31 $ 6,788,823 $ 6,788,823 $ 9,714,910 $ 2,926,087

55
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE - ROAD AND BRIDGE FUND - MODIFIED CASH BASIS
Year Ended December 31, 2018

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 1,285,500 $ 1,285,500 $ 1,330,343 $ 44,843
Intergovernmental receipts 55,000 55,000 57,031 2,031
Other receipts 32,200 32,200 55,858 23,658
TOTAL RECEIPTS 1,372,700 1,372,700 1,443,232 70,532
DISBURSEMENTS
Highway and Roads
Wages and benefits 1,166,500 1,166,500 1,339,132 (172,632)
Road construction 61,500 61,500 59,871 1,629
Other 10,000 10,000 6,659 3,341
TOTAL DISBURSEMENTS 1,238,000 1,238,000 1,405,662 (167,662)
EXCESS OF RECEIPTS
OVER DISBURSEMENTS 134,700 134,700 37,570 (97,130)
OTHER FINANCING (USES)
Operating transfers (out) (224,489) (224,489)
TOTAL OTHER
FINANCING (USES) (224,489) (224,489)
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS
AND OTHER (USES) 134,700 134,700 (186,919) (321,619)
FUND BALANCE, January 1 2,063,030 2,063,030 1,894,670 (168,360)
FUND BALANCE, December 31 $ 2,197,730 $ 2,197,730 $ 1,707,751 $ (489,979)

56
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE - LAW ENFORCEMENT SALES TAX FUND - MODIFIED
CASH BASIS
Year Ended December 31, 2018

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 1,95.0,000 $ 1,950,000 $ 2,024,303 $ 74,303
Other receipts 6,500 6,500 13,769 7,269
TOTAL RECEIPTS 1,956,500 1,956,500 2,038,072 81,572

DISBURSEMENTS
Debt service 2,409,050 2,409,050 2,415,276 (6,226)
TOTAL DISBURSEMENTS 2,409,050 2,409,050 2,415,276 (6,226)
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (452,550) (452,550) (377,204) 75,346
FUND BALANCE, January 1 1,715,665 1,715,665 1,613,363 (102,302)
FUND BALANCE, December 31 $ 1,263,115 $ 1,263,115 $ 1,236,159 $ (26,956)

57
TANEY COUNTY, MISSOURI
BUDGETARY COMPARISON SCHEDULE - COUNTY SEWER SALES TAX FUND - MODIFIED CASH
BASIS
Year Ended December 31, 2018

Variance
Original Final With Final
Budget Budget Actual Budget
RECEIPTS
Taxes $ 8,000,000 $ 8,000,000 $ 8,098,081 $ 98,081
Other receipts 150,000 150,000 237,118 87,118
TOTAL RECEIPTS 8,150,000 8,150,000 8,335,199 185,199
DISBURSEMENTS
Sewer 20,846,371 20,846,371 12,250,108 8,596,263
TOTAL DISBURSEMENTS 20,846,371 20,846,371 12,250,108 8,596,263
(DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS (12,696,371) (12,696,371) (3,914,909) 8,781,462
OTHER FINANCING (USES)
Operating transfers (out) (58,832) (58,832) (69,127) (10,295)
TOTAL OTHER
FINANCING (USES) (58,832) (58,832) (69,127) (10,295)
(DEFICIT) OF RECEIPTS OVER
DISBURSEMENTS AND OTHER (USES) (12,755,203) (12,755,203) (3,984,036) 8,771,167
FUND BALANCE, January 1 20,548,906 20,548,906 19,037,884 (1,511,022)
FUND BALANCE, December 31 $ 7,793,703 $ 7,793,703 $ 15,053,848 $ 7,260,145

58
TANEY COUNTY, MISSOURI
NOTE TO BUDGETARY COMPARISON SCHEDULES
December 31, 2018

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 REPORTING REQUIREMENTS
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES - NON-MAJOR SPECIAL REVENUE FUNDS - MODIFIED CASH BASIS
December 31,2018

Prosecuting Circuit
Law Prosecuting Attorney Sheriff Prosecuting Sheriff Clerk
Enforcement Attorney Tax Delinquent Civil Vest Attorney Drug Treatment
Assessment Training Training E-911 Maintenance Tax Fees Grant Bad Check Forfeiture Courts
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments $ 398,534 $ 2,198 $ 1,733 $ 66,431 $ 87,085 $ 86,390 $ 40,803 $ $ 54,137 $ 3,308 $ 26,150
TOTAL ASSETS $ 398,534 $ 2,198 $ 1,733 $ 66,431 $ 87,085 $ 86,390 $ 40,803 $ - $ 54,137 $ 3,308 $ 26,150

FUND BALANCES
Restricted for:
Public safety $ - $ 2,198 $ - S 66,431 $ - $ - $ 40,S03 $ - $ : - $ 3,308 $ -
Elections - - - - - - - - - - -
Recorder - - - - - - - - - - -
Judicial - - 1.733 - - 86,390 - - 54,137 - 26,150
Tax maintenance - - . - 87,085 - - - - - -
Assigned
Assessment 398,534 - - - ■ - - - - - - -
TOTAL FUND BALANCES $ 398.534 S 2,198 $ 1,733 $ 66.431 $ 87,085 $ 86,390 $ 40,803 $ - $ 54.137 S 3,308 $ 26,150

61
TANEY COUNTY, MISSOURI
COMBINING STATEMENT OF ASSETS AND FUND BALANCES NON-MAJOR SPECIAL REVENUE FUNDS - MODIFIED CASH BASIS
(continued)
December 31, 2018

Local Local Law
Emergency Circuit Circuit Enforcement
Planning Election Recorder Law Domestic Sheriff Inmate Clerk Clerk Block
Commission Services Tech Library Violence Revolving Security Interest Education Grant
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total
ASSETS
Cash and investments $ 10,121 $ 34,346 $ 383,603 $ 21,916 $ 7,383 $ 89,758 $ 88,684 $ 21.000 $ 55,771 $ 148 $ 1,479,499
TOTAL ASSETS $ 10,121 $ 34,346 S 383,603 $ 21,916 $ 7,383 $ 89,758 $ 88,684 $ 21,000 $ 55,771 $ 148 $ 1,479.499

FUND BALANCES
Restricted for:
Public safety $ 10,121 $ $ - S $ 7,383 $ 89,758 $ 88,684 $ $ $ 148 $ 308.834
Elections - 34,346 - - - - - - - - 34,346
Recorder - - 383,603 - - - - - - - 383,603
Judicial - - - 21,916 - - - 21,000 55,771 - 267,097
Tax maintenance . - - - - - - - - - 87,085
Assigned
Assessment _ . . 398,534
- - - - _ _ -

TOTAL FUND BALANCES $ 10,121 S 34,346 $ 333,603 $ 21,916 $ 7,383 S 89,758 S 88.684 S 21,000 $ 55,771 $ 148 $ 1,479,499

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 31,2018

Prosecuting Circuit
Law Prosecuting Attorney Sheriff Prosecuting Sheriff Clerk
Enforcement Attorney Tax Delinquent Civil Vest Attorney Drug Treatment
Assessment Training Training E-911 Maintenance Tax Fees Grant Bad Check Forfeiture Courts
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
RECEIPTS
Taxes $ $ $ $ 611,070 S $ $ $ $ $ $
Intergovernmental receipts - - - - 5,436
Fees and charges 672,438 4,100 1,045 109 115,909 8,349 50,000 14,830 13,496
Other receipts 4.910 1,897 17 4,905 1.721 1,176 2,313 10 1,021 51 48
TOTAL RECEIPTS 677,348 5,997 1.062 616,084 117,630 9,525 52,313 5,446 15,851 51 13,544
DISBURSEMENTS
Current
General government 633,026 - - - 73,344
Judicial - - 425 - - 3,787 - - 20,870 - 35,179
Public safety - 4,388 - 390,155 - - 73,643 5,446 - 511 -

TOTAL DISBURSEMENTS 633,026 4,388 425 390.155 73,344 3.787 73,643 5,446 20,870 511 35,179
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS 44,322 1,609 637 225.929 44,286 5,738 (21,330) - (5,019) (460) (21,635)
OTHER FINANCING (USES)
Operating transfers (out) (32,738) - - (315,415) (30,000) _ _ _

TOTAL OTHER
FINANCING (USES) (32,738) - - (315,415) (30,000)
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS
AND OTHER (USES) 11,584 1,609 637 (89,486) 14,286 5,738 (21,330) (5,019) (460) (21,635)
FUND BALANCE, January 1 386,950 589 1.096 155.917 72,799 80,652 62.133 - 59.156 3,768 47,785
FUND BALANCE, December 31 $ 398,534 $ 2,198 $ 1,733 $ 66,431 $ 87,085 $ 86,390 $ 40,803 $ - $ 54,137 S 3,308 $ 26,150

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 31,2018

Local Local Law
Emergency Circuit Circuit Enforcement
Planning Election Recorder Law Domestic Sheriff Inmate Clerk Clerk Block
Commission Services Tech Library Violence Revolving Security Interest Education Grant
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total
RECEIPTS
Taxes $ S $ $ S $ $ $ $ $ $ 611,070
Intergovernmental receipts 3,492 4,874 - - - - - - - 9,972 23,774
Fees and charges - 11,610 200,434 12,584 7,332 15,386 174,999 885 10,389 - 1,313,895
Other receipts 121 4.133 5,565 235 51 1,404 1,308 23 77 28 31,014
TOTAL RECEIPTS 3,613 20,617 205,999 12,819 7,383 16,790 176,307 908 10,466 10,000 1,979,753
DISBURSEMENTS
Current
General government - 12,120 81,196 - - - - - - - 799,686
Judicial - - - 44,668 - - - 3,472 11,526 - 119,927
Public safely 2,214 - - 7,573 42.848 176,761 - - 9,852 713,391

TOTAL DISBURSEMENTS 2,214 12,120 81,196 44,668 7,573 42,848 176,761 3,472 11,526 9,852 1,633,004
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS 1,399 8,497 124,803 (31,849) (190) (26,058) (454) (2,564) (1,060) 148 346,749
OTHER FINANCING (USES)
Operating transfers (out) - (10,000) (109,919) - - . - - - - (498,072)

TOTAL OTHER
FINANCING (USES) - (10,000) (109.919) - - - - - - - (498,072)
EXCESS (DEFICIT) OF RECEIPTS
OVER DISBURSEMENTS
AND OTHER (USES) 1,399 (1,503) 14,884 (31,849) (190) (26.058) (454) (2,564) (1,060) 148 (151323)
FUND BALANCE, January 1 8,722 35,849 368,719 53,765 7,573 115,816 89,138 23,564 56,831 - 1,630,822
FUND BALANCE, December 31 $ 10,121 $ 34,346 $ 383,603 $ 21,916 $ 7.383 S 89,758 $ 88,684 $ 21,000 $ 55,771 $ 148 $ 1,479,499

64
 CPAS a A D V I S O R S

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

Taney County Commission
Taney County
Forsyth, Missouri

We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities, business-type
activities, the 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, 2018, 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 17, 2019.

The financial statements of Tantone Industries, Inc. were not audited in accordance with Government Auditing
Standards and, accordingly, this report does not include reporting on internal control over financial reporting or
instances of reportable noncompliance associated with Tantone Industries, Inc.

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 of The Leading Edge Alliance £5
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.

KP/tt
KPM CPAs, PC
Springfield, Missouri
May 17, 2019

66
 CPAS & A D V I S O R S

Taney County Commission
Taney County
Forsyth, Missouri

We have audited the basic financial statements of Taney County, Missouri, for the year ended December 31,
2018, and have issued our report thereon dated May 17, 2019. Professional standards require that we provide
you with the following information related to our audit.

Our Responsibility under U.S. Generally Accepted Auditing Standards

As stated in our engagement letter dated January 5, 2019, our responsibility, as described by professional
standards, is to express opinions about whether the financial statements prepared by management with your
oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting
principles. Our audit of the financial statements does not relieve you or management of your responsibilities.

Planned Scope and Timing of the Audit

We performed the audit according to the planned scope and timing previously communicated to you in our
engagement letter dated January 5, 2019.

Significant Audit Matters

Qualitative Aspects o f Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. In accordance with the
terms of our engagement letter, we will advise management about the appropriateness of accounting policies
and their application. The significant accounting policies used by Taney County, Missouri, are described in
Note A to the financial statements. No new accounting policies were adopted and the application of existing
policies was not changed during 2018.

Accounting estimates are an integral part of the financial statements prepared by management and are based on
management’s knowledge and experience about past and current events and assumptions about future events.

The disclosures in the financial statements are neutral, consistent, and clear.

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 j fax 417-336-3403
Member of The Leading Edge Alliance
Taney County Commission
Taney County
Forsyth, Missouri
Page Two

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are trivial, and communicate them to the appropriate level of management. No material
misstatements were detected as a result of audit procedures.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to
the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose
during the course of our audit.

Management Representations

We have requested certain representations from management that are included in the management
representation letter dated May 17, 2019.

Management Consultations with Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of
an accounting principle to the County’s financial statements or a determination of the type of auditor’s opinion
that may be expressed on those statements, our professional standards require the consulting accountant to
check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.

Other Audit Findings or Issues

We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the County’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
Taney County Commission
Taney County
Forsyth, Missouri
Page Three

This report is intended solely for the use of the County Commission and management of Taney County,
Missouri, and is not intended to be, and should not be, used by anyone other than these specified parties.

Sincerely,

KP/n
KPM CPAs, PC
Springfield, Missouri
May 17, 2019
 F :ft\ y
CPAS & ADVISO RS
i ;'iv n
Taney County Commission
Taney County
Forsyth, Missouri

In planning and performing our audit of the basic financial statements of Taney County, Missouri, for the year
ended December 31, 2018, we considered the County's internal control to determine our auditing procedures for
the purpose of expressing an opinion on the basic financial statements and not to provide assurance on the
internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s internal
control over financial reporting.

In addition to the 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, we
became aware of additional matters to bring to your attention. The following paragraphs summarize our
comments and recommendations regarding these matters,

1. Signatures on Checks

During our audit, we noted that more than one signature is required on only some of the checks issued
from the County’s bank accounts, while some checks issued by the County require only one signature.
These accounts include the Circuit Clerk Accounts. A policy requiring more than one signature on every
check is one internal control procedure to prevent unauthorized disbursements.

We Recommend:

The County review its policy regarding the necessary signatures on checks issued by the various County
offices. The County also needs to modify its depository agreement with its banking institutions to include
the instructions regarding when a check is valid and may be honored by the institution. If the County does
not utilize dual signatures on the checks, then the County should require that the Auditor’s office perform
verification procedures on these accounts.

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 of The Leading Edge Alliance
Taney County Commission
Taney County
Forsyth, Missouri
Page Two

2. Budgetary Compliance

The County was not in compliance with the budgetary statute Chapter 67 RSMo, in the current year as
actual expenditures exceeded budgeted expenditures in the Road and Bridge Fund and the Law
Enforcement Sales Tax Fund. The budgetary statute prohibits actual expenditures exceeding budgeted
expenditures for any fund maintained by the County.

We Recommend:

The County review expenditures during the year and amend the budget as necessary to avoid expending
more than the budgeted amount to ensure compliance with the budgetary statute (Chapter 67. RSMo).

3. Purchase Orders

Currently, the County purchase order system does not allow for dollar amounts of quoted prices or bid
amounts to be entered on the purchase order. This ability would allow the County to match up the quoted
prices and bid amounts to the invoices prior to payment of the invoice. This would help prevent the
overpayment for goods and services to vendors,

We Recommend:

The County request a modification to the purchase order system to allow for amounts to be entered for
quoted prices and bid amounts. The County should then adopt a policy requiring these amounts to be
entered onto the purchase order and matched to the invoice prior to payment.

4. Accounts Payable and Payroll

During our audit, we noted the County has segregated accounts payable and payroll functions from the
Auditor’s Office. However, the accounts payable and payroll functions are still not under the County
Clerk’s Office. State Statutes indicate the responsibility for the functions is with the County Clerk’s
Office. Also, better segregation of duties can be achieved if these functions are located in the County
Clerk’s Office.

We Recommend:

The County consider moving accounts payable and payroll to the County Clerk’s Office.
Taney County Commission
Taney County
Forsyth, Missouri
Page Three

5. New Pronouncement

The Governmental Accounting Standards Board (GASB) has issued the GASB Statement No. 84 -
Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities. Activities
meeting the criteria will be reported in a fiduciary fund in the basic financial statements. Specifically,
custodial funds generally should report fiduciary activities if they meet specific criteria. The effective
date is for the fiscal year ending December 31, 2019, with earlier implementation encouraged.

We Recommend:

The County examine the new pronouncement to determine the effect this will have on future financial
reporting and to ensure successful implementation on the effective date.

We will review the status of these comments during our next audit engagement. We will be pleased to discuss
them in further detail at your convenience, to perform any additional study of these matters or to assist you in
implementing the recommendations.

We appreciate this opportunity to serve as Taney County, Missouri’s independent auditor and the courtesies and
assistance extended to us by the County’s employees.

K P/n cM s> ,p c^
KPM CPAs, PC
Springfield, Missouri
May 17, 2019