Yell County, Arkansas
Regulatory Basis Financial Statements and Other Reports
December 31, 2014
LEGISLATIVE JOINT AUDITING COMMITTEE
YELL COUNTY, ARKANSAS TABLE OF CONTENTS FOR THE YEAR ENDED DECEMBER 31, 2014
Independent Auditor's Report Report on Internal Control Over Financial Reporting, Compliance and Other Matters, and Other Issues Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
REGULATORY BASIS FINANCIAL STATEMENTS
Exhibit
Balance Sheet – Regulatory Basis A Statement of Revenues, Expenditures, and Changes in Fund Balances – Regulatory Basis B Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual – General and Road Funds – Regulatory Basis C Notes to Financial Statements
SUPPLEMENTARY INFORMATION
Schedule Combining Balance Sheet – Other Funds in the Aggregate – Regulatory Basis 1 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Other Funds in the Aggregate – Regulatory Basis 2 Notes to Schedules 1 and 2
OTHER INFORMATION
Schedule of Capital Assets (Unaudited) 3 Schedule of Selected Information for the Last Five Years – General Fund - Regulatory Basis (Unaudited) 4-1 Schedule of Selected Information for the Last Five Years – Road Fund - Regulatory Basis (Unaudited) 4-2 Schedule of Selected Information for the Last Five Years – Other Funds in the Aggregate - Regulatory Basis (Unaudited) 4-3
Sen. Jimmy Hickey, Jr. Rep. Mary Broadaway Senate Chair House Chair Sen. Linda Chesterfield Rep. Sue Scott Senate Vice Chair House Vice Chair
Roger A. Norman, JD, CPA, CFE, CFF
Legislative Auditor
LEGISLATIVE JOINT AUDITING COMMITTEE ARKANSAS LEGISLATIVE AUDIT
INDEPENDENT AUDITOR'S REPORT
Yell County, Arkansas Officials and Quorum Court Members Legislative Joint Auditing Committee
Report on the Financial Statements
We have audited the accompanying regulatory basis financial statements of the general fund, road fund, and other funds in the aggregate of Yell County, Arkansas, as of and for the year ended December 31, 2014, as listed in the table of contents, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of Ark. Code Ann. § 10-4-412, as described in Note 1, to meet the requirements permitted by the State of Arkansas; this includes determining that the regulatory 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 financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s 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 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 auditor’s 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 entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. 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.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1 of the financial statements, the financial statements are prepared by the County on the basis of the financial reporting provisions of Ark. Code Ann. § 10-4-412, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements permitted by the State of Arkansas.
The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of Yell County, Arkansas, as of December 31, 2014 or the revenues, expenditures, and changes in net position and where applicable, cash flows, thereof for the year then ended.
500 WOODLANE STREET, SUITE 172 • LITTLE ROCK, ARKANSAS 72201-1099 • PHONE: (501) 683-8600 • FAX: (501) 683-8605 www.arklegaudit.gov
Basis for Qualified Opinions on Regulatory Basis of Accounting
The County’s financial statements do not disclose all the required information concerning deposit risks. In our opinion, disclosure of this information is required by the regulatory basis of accounting described in Note 1.
Qualified Opinions on Regulatory Basis of Accounting
In our opinion, except for the omission of the information described in the “Basis for Qualified Opinions on Regulatory Basis of Accounting” paragraph, the financial statements referred to above present fairly, in all material respects, the regulatory basis financial position of the general fund, road fund, and other funds in the aggregate of Yell County, Arkansas, as of December 31, 2014, and the regulatory basis revenues, expenditures, and changes in net position, and the budgetary comparisons for the general fund and road fund for the year then ended in accordance with the financial reporting provisions of Ark. Code Ann. § 10-4-412 described in Note 1.
Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the accompanying regulatory basis financial statements. The accompanying supplementary information and other information listed in the table of contents are presented for purposes of additional analysis and are not a required part of the financial statements.
The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the regulatory basis financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, except for the omission of the information described above, the supplementary information is fairly stated, in all material respects, in relation to the regulatory basis financial statements as a whole on the basis of accounting described in Note 1.
The other information has not been subjected to the auditing procedures applied in the audit of the regulatory basis financial statements, and accordingly, we do not express an opinion or provide any assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 12, 2016, on our consideration of the County's internal control over financial reporting and on our tests of its compliance with certain provisions of the state constitution, 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 the County’s internal control over financial reporting and compliance.
ARKANSAS LEGISLATIVE AUDIT
Roger A. Norman, JD, CPA, CFE Legislative Auditor Little Rock, Arkansas July 12, 2016 LOCO07514
-2-
Sen. Jimmy Hickey, Jr. Rep. Mary Broadaway Senate Chair House Chair Sen. Linda Chesterfield Rep. Sue Scott Senate Vice Chair House Vice Chair
Roger A. Norman, JD, CPA, CFE, CFF Legislative Auditor
LEGISLATIVE JOINT AUDITING COMMITTEE ARKANSAS LEGISLATIVE AUDIT
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING, COMPLIANCE AND OTHER MATTERS, AND OTHER ISSUES BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
INDEPENDENT AUDITOR’S REPORT
Yell County, Arkansas Officials and Quorum Court Members Legislative Joint Auditing Committee
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 accompanying regulatory basis financial statements of the general fund, road fund, and other funds in the aggregate of Yell County, Arkansas, as of and for the year ended December 31, 2014, and the related notes to the financial statements, and have issued our report thereon dated July 12, 2016. We issued an adverse opinion because the financial statements are prepared by the County on the basis of the financial reporting provisions of Ark. Code Ann. § 10-4-412, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material. However, with respect to the regulatory basis of accounting described in Note 1, our opinions on the general fund, road fund, and other funds in the aggregate were qualified because required disclosures were not made concerning deposit risks.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the County’s internal control over financial reporting (internal control) 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 the County’s internal control. Accordingly, we do not express an opinion on the effectiveness of the County’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or 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. We consider the following deficiency to be a material weakness:
2014-1 To ensure the proper safeguarding of assets, financial accounting duties relating to initiating, receipting, depositing, disbursing, and recording transactions should be distributed among appropriate employees. The County officials, as specified in the Other Issues section of this report, did not segregate these duties to sufficiently reduce the risks of fraud or error and properly safeguard the County’s assets, because of limited financial resources. We recommend that the financial accounting duties in each office be segregated among employees to the extent possible.
The County officials, as specified in the Other Issues section of this report, responded and indicated that their offices will segregate the duties relating to initiating, receipting, depositing, disbursing, and recording transactions to the extent possible with the current staffing levels.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the County’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of the state constitution, 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.
500 WOODLANE STREET, SUITE 172 • LITTLE ROCK, ARKANSAS 72201-1099 • PHONE: (501) 683-8600 • FAX: (501) 683-8605 www.arklegaudit.gov
Entity’s Response to Finding
The County’s response to the finding identified in our audit is described above. The County’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Other Issues
The following issues are not significant deficiencies, material weaknesses, or material instances of noncompliance, but are issues that are presented to assist in the efficient operation of the County.
The commentary contained in this section relates to the following officials that held office during2014:
County Judge: Mark Thone Treasurer: Brandi Rolen Sheriff/Tax Collector: Bill Gilkey County/Circuit Clerk: Sharon Barnett Assessor: Sandy Bottoms County Librarian: Stacie Laurie District Court Clerk: Tammy Meimerstorf
Our audit procedures indicated that the offices of Treasurer, Sheriff/Tax Collector, Assessor, County Librarian, and District Court Clerk were in substantial compliance with Arkansas fiscal and financial laws. Noncompliance with state law was noted in the offices of County Judge and County/Circuit Clerk. Noncompliance accepted accounting practices was noted in the office of District Court Clerk.
County Judge and County/Circuit Clerk
The County allows Quorum Court members to reimburse the County for health, dental, and life insurance premiums rather than have the premiums withheld from wages. The County did not properly record and track insurance premiums incurred on behalf of Quorum Court members. During the period January 1, 2014 to May 31, 2015, a Quorum Court member did not reimburse insurance premiums totaling $6,582; the amount remained due the County as of report date.
The following Information Systems weakness was discovered during a review of computers:
District Court Clerk
There was no documented remote access security policy. Failure to establish and communicate an adequate remote access security policy could result in the unnecessary exposure or misuse of information resources. We recommend that management draft and implement a policy identifying the risks associated with remote access, and establishing guidance for remote connections to local resources.
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 result 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. However, pursuant to Ark. Code Ann. § 10-4-417, all reports presented to the Legislative Joint Auditing Committee are matters of public record and distribution is not limited.
ARKANSAS LEGISLATIVE AUDIT
Marti Steel, CPA Deputy Legislative Auditor
Little Rock, Arkansas July 12, 2016
-4- YELL COUNTY, ARKANSAS Exhibit A BALANCE SHEET - REGULATORY BASIS DECEMBER 31, 2014
Other Funds in the General Road Aggregate ASSETS Cash and cash equivalents $ 1,253,102 $ 105,458 $ 9,516,187 Accounts receivable 321,949 9,865 188,739 Interfund receivables 540,827 1,217
TOTAL ASSETS $ 1,575,051 $ 656,150 $ 9,706,143
LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 86,058 $ 38,551 $ 15,668 Interfund payables 542,044 Settlements pending 20,944 475,364 Total Liabilities 649,046 38,551 491,032
Fund Balances: Restricted 9,215,111 Assigned 283,491 617,599 Unassigned 642,514 Total Fund Balances 926,005 617,599 9,215,111
TOTAL LIABILITIES AND FUND BALANCES $ 1,575,051 $ 656,150 $ 9,706,143
The accompanying notes are an integral part of these financial statements.
-5- YELL COUNTY, ARKANSAS Exhibit B STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014
Other Funds in the General Road Aggregate REVENUES State aid $ 623,919 $ 1,573,666 $ 360,743 Federal aid 531,427 238,278 91,555 Property taxes 913,523 357,700 361,693 Sales taxes 897,856 972,991 Fines, forfeitures, and costs 122,785 107,744 Interest 3,335 282 6,404 Officers' fees 8,015 139,150 Sanitation fees 233,166 Prisoner fees 691,807 911 fees 276,354 Franchise fees 3,088 Insurance proceeds 9,114 Treasurer's commission 108,340 16,881 Collector's commission 173,718 39,415 Taxes apportioned - Assessor's salary and expense 229,122 Other 465,856 4,323 16,808
TOTAL REVENUES 5,005,957 2,174,249 2,398,852
Less: Treasurer's commission 61,135 32,627 14,520
NET REVENUES 4,944,822 2,141,622 2,384,332
EXPENDITURES Current: General government 1,182,580 232,337 Law enforcement 2,763,744 1,059,288 Highways and streets 2,290,291 Public safety 149,017 363,048 Sanitation 318,976 Health 54,331 Recreation and culture 433,657 Social services 165,419 Economic development 2,000 Total Current 4,634,067 2,290,291 2,090,330
Debt Service: Bond principal 180,000 Bond interest and other charges 140,291 Lease principal 35,368 Lease interest 2,952 Note principal 42,201 11,245 Note interest 3,039 501
TOTAL EXPENDITURES 4,679,307 2,340,357 2,410,621 -6- YELL COUNTY, ARKANSAS Exhibit B STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014
Other Funds in the General Road Aggregate EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 265,515 $ (198,735) $ (26,289)
OTHER FINANCING SOURCES (USES) Transfers in 739,814 Transfers out (553,497) (186,317) Bond proceeds 7,960,000
TOTAL OTHER FINANCING SOURCES (USES) (553,497) 739,814 7,773,683
EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (287,982) 541,079 7,747,394
FUND BALANCES - JANUARY 1 1,213,987 76,520 1,467,717
FUND BALANCES - DECEMBER 31 $ 926,005 $ 617,599 $ 9,215,111
The accompanying notes are an integral part of these financial statements.
-7- YELL COUNTY, ARKANSAS Exhibit C STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL AND ROAD FUNDS - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014
General Road Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) REVENUES State aid $ 476,065 $ 623,919 $ 147,854 $ 1,659,194 $ 1,573,666 $ (85,528) Federal aid 468,199 531,427 63,228 175,200 238,278 63,078 Property taxes 861,700 913,523 51,823 248,600 357,700 109,100 Sales taxes 1,279,500 897,856 (381,644) Fines, forfeitures, and costs 133,206 122,785 (10,421) Interest 340 3,335 2,995 100 282 182 Officers' fees 9,300 8,015 (1,285) Sanitation fees 284,700 233,166 (51,534) Prisoner fees 816,425 691,807 (124,618) Franchise fees 3,088 3,088 Treasurer's commission 110,000 108,340 (1,660) Collector's commission 197,696 173,718 (23,978) Taxes apportioned - Assessor's salary and expense 235,000 229,122 (5,878) Other 314,973 465,856 150,883 25,070 4,323 (20,747)
TOTAL REVENUES 5,187,104 5,005,957 (181,147) 2,108,164 2,174,249 66,085
Less: Treasurer's commission 63,000 61,135 1,865 44,000 32,627 11,373
NET REVENUES 5,124,104 4,944,822 (179,282) 2,064,164 2,141,622 77,458
EXPENDITURES Current: General government 1,318,773 1,182,580 136,193 Law enforcement 2,989,062 2,763,744 225,318 Highways and streets 2,691,709 2,290,291 401,418 Public safety 185,171 149,017 36,154 Sanitation 374,060 318,976 55,084 Health 60,675 54,331 6,344 Social services 119,859 165,419 (45,560) Total Current 5,047,600 4,634,067 413,533 2,691,709 2,290,291 401,418
Debt Service: Lease principal 40,729 35,368 5,361 Lease interest 3,825 2,952 873 Note principal 36,773 42,201 (5,428) 11,245 11,245 Note interest 2,901 3,039 (138) 501 501
TOTAL EXPENDITURES 5,087,274 4,679,307 407,967 2,748,009 2,340,357 407,652
-8- YELL COUNTY, ARKANSAS Exhibit C STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL AND ROAD FUNDS - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014
General Road Variance Variance Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES $ 36,830 $ 265,515 $ 228,685 $ (683,845) $ (198,735) $ 485,110
OTHER FINANCING SOURCES (USES) Transfers in 521,250 (521,250) 426,500 739,814 313,314 Transfers out (566,500) (553,497) 13,003
TOTAL OTHER FINANCING SOURCES (USES) (45,250) (553,497) (508,247) 426,500 739,814 313,314
EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (8,420) (287,982) (279,562) (257,345) 541,079 798,424
FUND BALANCES - JANUARY 1 50,000 1,213,987 1,163,987 250,000 76,520 (173,480)
FUND BALANCES - DECEMBER 31 $ 41,580 $ 926,005 $ 884,425 $ (7,345) $ 617,599 $ 624,944
The accompanying notes are an integral part of these financial statements.
-9- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 1: Summary of Significant Accounting Policies
A. Financial Reporting Entity
The County is a political subdivision of the state governed by an elected quorum court. The reporting entity includes all the funds of the County.
B. Basis of Presentation - Regulatory Fund Accounting
The financial statements are presented in accordance with the regulatory basis of presentation as prescribed or permitted by Ark. Code Ann. § 10-4-412. The law requires that the financial statements be presented on a fund basis with, as a minimum, the general fund and road fund presented separately with all other funds included in the financial statements presented in the aggregate. This law also stipulates that the financial statements consist of a balance sheet; a statement of revenues, expenditures, and changes in fund balances; a comparison of the final adopted budget to actual expenditures for the general and road funds; notes to financial statements; and a supplemental schedule of capital assets.
A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with related liabilities and residual balances, and changes therein, which are segregated for purposes of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.
The following types of funds are recognized in the accompanying regulatory basis financial statements.
General Fund - The General Fund is used to account for and report all financial resources not accounted for and reported in another fund. The General Fund heading as it appears in the financial statements includes the following accounts: General, Emergency, Juvenile Detention, Sales Tax, County Jail, War Memorial, and General Improvement Funds.
Road Fund - The Road Fund (Special Revenue Fund) is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The Road Fund accounts for and reports proceeds of state highway turnback, federal aid, and property taxes that are restricted or committed for maintaining and constructing roads.
Other Funds in the Aggregate - Other Funds in the Aggregate consist of all funds included in the financial statements except for the General and Road Funds. The following types of funds are included in this column as follows:
Special Revenue Funds - Special Revenue Funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The following Special Revenue Funds are reported with other funds in the aggregate: County Public Library, Public Defender, Emergency 911, Jail Restoration, Treasurer’s Automation, Nuclear Response, Recorder’s Automation, County Recorder, Collector’s Automation, Firefighter’s Training, West Nile Virus, District Court Automation, Assessor’s Amendment no. 79, Support Cost Collections. District Court Cost, Juvenile Probation, Public Defender’s Investigator, Circuit Court Automation, Boating Safety and Enforcement, County Security, Communication Facility and Equipment, Drug Control, County Clerk’s Cost, Homeland Security Grant, County Security (Act 576) Grant, Drug Court, County Jail Operation and Maintenance, Reappraisal, Fire Equipment and Training (Act 833), Circuit Clerk Commissioner’s Fee, Prosecutor’s Victim/Witness, and Automated Records System Grant.
Capital Projects Funds - Capital Projects Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlay, including the acquisition or construction of capital facilities and other capital assets (other than those financed by Enterprise Funds). The following Capital Projects Funds are reported with other funds in the aggregate: Pet Solutions and Jail Construction.
Debt Service Funds - Debt Service Funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. The following Debt Service Funds are reported with other funds in the aggregate: Sales and Use Tax Bonds 2005 and Jail Debt Service and Reserve. -10- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 1: Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation - Regulatory Fund Accounting (Continued)
Other Funds in the Aggregate (Continued)
Agency Funds - Agency Funds are used to report resources held by the reporting government in a purely custodial capacity (assets equal liabilities). The following Agency Funds are reported with other funds in the aggregate: Treasurer (Treasurer Commission, Collector’s Unapportioned, County Investment, Title III, Administration of Justice, County Law Library, Game and Fish, Sanitation Sales Tax, and Act 65 and 431 of 2005), Tax Collector (Delinquent Real and Delinquent Personal), County Sheriff (Bond and Fine, Paper Service, and Restitution), County/Circuit Clerk ( Fee, Trust, and Child Support), District Court (County, Dardanelle City, Bond and Fine, Danville City, and Ola City).
C. Basis of Accounting
The financial statements are prepared on the regulatory basis of accounting as prescribed or permitted by Ark. Code Ann. § 10-4-412. This regulatory basis differs from accounting principles generally accepted in the United States of America. Revenues generally are recognized as soon as they are both measurable and available except for Treasurer’s and Collector’s commission and Taxes apportioned – Assessor’s salary and expense which are recognized when earned. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current period. However, most state aid received from the State Treasury is by state law revenue of the year in which it was received by the government. Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. As a result of the use of this regulatory basis of accounting, capital assets and long-term debt are not recorded in these financial statements.
D. Assets, Liabilities, and Fund Balances
Cash and Cash Equivalents
For the purpose of financial reporting, “cash and cash equivalents” includes all demand and certificates of deposit with an original maturity of three months or less.
Settlements Pending
Settlements pending are considered fines, forfeitures, costs, excess commissions, trust funds, officer fees, and property taxes that have not been transferred to the appropriate entities.
Fund Balance Classifications
1. Restricted fund balance – amounts that are restricted when constraints placed on the use of resources are either (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation.
2. Assigned fund balance – amounts that are constrained by the Quorum Court’s intent to be used for specific purposes, but are neither restricted nor committed.
3. Unassigned fund balance – amounts that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the general fund. This classification may also include negative amounts in other governmental funds, if expenditures incurred for specific purposes exceeded the amounts restricted, committed, or assigned to those purposes.
E. Property Taxes
A lien attaches to the real property in January and on personal property in June of each year. Property taxes are collectible beginning the first business day of March of the subsequent year, but are not considered delinquent until after October 15. -11- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 1: Summary of Significant Accounting Policies (Continued)
F. Budget Law
1. Legal Requirements
State law requires that the Quorum Court, before the end of each fiscal year, make appropriations, by ordinance, for the expenditures of County government for the following year. The Quorum Court may make appropriation amendments at any time during the current fiscal year. Appropriations lapse at the end of each year. Under certain conditions, the budget may be amended subsequent to the year-end.
2. Accounting
The County prepared an annual budget on the regulatory basis for the General Fund, Road Fund, and the other operating funds except for the Sheriff’s Communication and Equipment fund and the County Library fund.
G. Fund Balance Classification Policies and Procedures
The County’s highest level of decision-making authority is its Quorum Court. The establishment of amounts classified as committed fund balances and any subsequent modifications to such balances are the result of formal action taken by the Quorum Court through passage of an ordinance. The Quorum Court is authorized to assign amounts to a specific purpose, although a formal policy has not been established.
The County does not have a policy addressing whether it considers restricted or unrestricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted amounts are available. For classification of fund balance amounts, restricted resources are considered spent before unrestricted. The County does not have a policy addressing which resources to use within the unrestricted fund balance when committed, assigned, or unassigned fund balances are available. When expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used, committed amounts are reduced first, followed by assigned amounts, and then unassigned amounts.
There were no committed fund balances at year-end.
NOTE 2: Cash
Deposit risks related to credit risk, concentration of credit risk, interest rate risk, and foreign currency risk have not been provided as required by Governmental Accounting Standards Board Statement no. 40.
NOTE 3: Legal or Contractual Provisions for Deposits and Investments
State law generally requires that county funds be deposited in federally insured banks located in the State of Arkansas. The county deposits may be in the form of checking accounts, savings accounts, and time deposits. Public funds may be invested in eligible investment securities having a maturity of no longer than 5 years from the date of acquisition unless, as documented at the time of acquisition, the investment is to fund or support a specific purpose and there are no expectations that the investment will be sold before maturity; an Arkansas bank certificate of deposit; an account established by a local government joint investment trust; or an Arkansas financial institution repurchase agreement for eligible investment securities in which the seller agrees to repurchase the investment at a price including interest earned during the holding period as determined by the repurchase agreement.
-12- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 4: Accounts Receivable
The accounts receivable balance at December 31, 2014, is composed of the following:
General Road Other Funds Description Fund Fund In the Aggregate
State aid $ 74,651 Federal aid 1,782 Officer fees 405 $ 10,925 Sales taxes 73,804 170,790 Fines, forfeitures, and costs 5,186 2,034 911 fees 600 Sanitation fees 17,575 Franchise fees 305 Prisoner care 4,196 Treasurer commission 118,340 Other 25,705 $ 9,865 4,390
Totals $ 321,949 $ 9,865 $ 188,739
NOTE 5: Accounts Payable
The accounts payable balance at December 31, 2014, is composed of the following:
General Road Other Funds Description Fund Fund In the Aggregate
Vendors payable $ 61,551 $ 30,378 $ 14,878 Salaries payable 24,507 8,173 790
Totals $ 86,058 $ 38,551 $ 15,668
NOTE 6: Interfund Balances
Individual fund interfund receivable and payable balances are as follows:
December 31, 2014 Interfund Interfund Fund Receivables Payables
General $ 542,044 Road $ 540,827 Other Funds in the Aggregate Special Revenue: County Library 1,217
Totals $ 542,044 $ 542,044
Interfund receivables and payables consist of errors in depositing restricted revenues and interfund loans. These balances were repaid in January of 2015.
-13- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 7: Legal Debt Limit
A. Property Tax Secured Bonded Debt
The County is subject to a constitutional limitation for bonded indebtedness equal to 10% of the total assessed value for tax purposes of real and personal property as determined by the last tax assessment. At December 31, 2014, the legal debt limit for bonded debt was $20,631.677. There were no property tax secured bond issues.
B. Short-term Financing Obligations
The County is subject to a constitutional limitation for short-term financing obligations equal to 2.5% of the assessed value of taxable property within the County as determined by the last tax assessment. At December 31, 2014, the legal debt limit for short-term financing obligations was $5,570,237. The amount of short-term financing obligations was $143,569, leaving a legal debt margin of $5,426,668.
NOTE 8: Details of Fund Balance Classifications
Fund balance classifications at December 31, 2014, are composed of the following:
General Road Other Funds Description Fund Fund In the Aggregate Fund Balances: Restricted for: General $ 367,724 Law enforcement 420,864 Public safety 445,204 Recreation/culture 297,920 Debt service 984,536 Capital outlay 6,698,863 Total Restricted 9,215,111
Assigned to: General government $ 202,469 Law enforcement 80,009 Highw ays and streets $ 617,599 Sanitation 1,013 Total Assigned 283,491 617,599
Unassigned 642,514
Totals $ 926,005 $ 617,599 $ 9,215,111
NOTE 9: Commitments
Total commitments consist of the following at December 31, 2014:
December 31, 2014
Long-term liabilities $ 8,528,569 Construction contract 6,376,962 Reappraisal contract 248,720
Total Commitments $ 15,154,251
-14- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 9: Commitments (Continued)
Long-term Liabilities
Long-term liabilities at December 31, 2014, are comprised of the following: December 31, 2014 A 2.5% lease-purchase agreement w ith John Deere Financial dated February 21,2012, for the purchase of a motor grader. Monthly payments of $3,193 for 60 months and $22,329 for one month are to be paid from the Road Fund. $ 98,848
A 5.75% note payable w ith Chambers Bank dated March 14, 2012, for the purchase of a 2012 Ford Fusion. Monthly payments of $464 for 36 months are to be paid form the General Fund. 367
A 5.75% note payable w ith Chambers Bank dated March 21, 2013, for the puchase of a Chevrolet Tahoe. Monthly payments of $765 for 36 months are to be paid from the General Fund. 11,036
Series 2005 Sales and Use Tax bonds dated January 1, 2006, w ith interest rates ranging from 4.25% to 4.75% and annual payments for 29 years. Payments are due on January 1 of each year. Bonds are subject to an optional redemption on or after January 1, 2011. Payments are to be paid from the Debt Service Fund. 425,000
A 5.0% note payable w ith Chambers Bank dated December 30, 2013, for the purchase of land. Monthly payments of $1,407 for 36 months are to be paid from the General Fund. 33,318
2014 Series Sales and Use Tax bonds dated March 10, 2014, w ith interest rates ranging from 1.0% to 3.0% and annual payments for 15 years. Payments are due on June 1 of each year. Bonds are subject to an optional redemption on or after June 1, 2019. Payments are to be paid from the Debt Service Fund. 7,960,000
Total Long Term Liabilities $ 8,528,569
Due to the County’s regulatory basis of accounting, these liabilities are not recorded in the financial statements.
Compensated Absences
Compensated absences do vest or accumulate. The amount of compensated absences was not determined.
Post Employment Benefits Other Than Pensions
The amount of any actuarially determined accrued liability for post employment benefits other than pensions was not determined.
Debt Service Requirements to Maturity
The County is obligated for the following amounts at December 31, 2014:
Years Ending December 31, Bonds Notes Leases Total
2015 $ 747,270 $ 26,429 $ 38,320 $ 812,019 2016 699,945 19,179 38,320 757,444 2017 697,585 1,407 25,507 724,499 2018 697,665 697,665 2019 695,330 695,330 2020 through 2025 3,376,239 3,376,239 2026 through 2029 3,116,094 3,116,094 Total Obligations 10,030,128 47,015 102,147 10,179,290 less Interest 1,645,128 2,294 3,299 1,650,721 Total Principal $ 8,385,000 $ 44,721 $ 98,848 $ 8,528,569
-15- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 9: Commitments (Continued)
Construction Contract
The County was contractually obligated for the following construction contract at December 31, 2014:
Contract Balance Project Name Completion Date December 31, 2014
County Jail April 1, 2016 $ 6,376,962
Reappraisal Contract
On November 30, 2011, the County entered into a contract with Total Assessment Solutions Corporation for appraisal service in the amount of $621,800. Terms of the contract requires 60 monthly payments of $10,363. The first payment was due on January 15, 2012 with subsequent payments being due the 15th of each month thereafter.
The County is obligated for the following amounts at December 31, 2014:
Year Amount
2015 $ 124,360 2016 124,360
Total $ 248,720
NOTE 10: Interfund Transfers
The General Fund transferred $553,497 to the Road Fund to supplement operations and Other Funds in the Aggregate (various funds) transferred $186,317 to the Road Fund to reimburse expenditures.
NOTE 11: Pledged Revenues
The County pledged future .125% sales and use taxes to repay $1,725,000 in bonds that were issued in 2005 to provide funding for construction and renovation of a courthouse. Total principal and interest remaining on the bonds are $425,000 and $62,730, respectively, payable through January 1, 2027. For 2014, principal and interest paid were $180,000 and $28,048, respectively.
The Debt Service Fund received $230,859 in sales taxes in 2014. Any sales taxes collected in excess of debt service payments on these bonds is to be used for payment on the bonds.
The County also pledged future .25% and .75% sales and use taxes to repay $7,960,000 in bonds that were issued in 2014 to provide funding for construction of a new county jail. Total principal and interest remaining on the bonds are $7,960,000 and $1,582,398, respectively, payable through June 1, 2029. For 2014, interest paid was $112,243.
The Debt Service Fund received $556,599 in sales taxes in 2014. Any sales taxes collected in excess of debt service payments on these bonds is permitted to be used for any lawful purpose.
NOTE 12: Joint Venture: Arkansas River Valley Regional Library
Franklin, Johnson, Logan, and Yell Counties entered into an agreement in July 1985, in accordance with Ark. Code Ann. § 13-2-401 to establish the Arkansas River Valley Regional Library (Library). The agreement states that services shall be made available to all residents of the counties who entered into the agreement. Bookmobile services will be given select areas in each county; the areas are to be recommended by the county library boards and approved by the Regional Library Board and the Arkansas Library Board. The County Public Library paid $80,508 for regional library expenditures in 2014. Separate financial statements of the Library are available at 501 N. Front Street, Dardanelle, Arkansas 72834. -16- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 13: Jointly Governed Organizations
West River Valley Solid Waste Management District
Conway, Crawford, Franklin, Johnson, Logan, Perry, Pope, Scott, and Yell Counties and the Cites of Van Buren, Ozark, Atkins, Booneville, Alma, Clarksville, Russellville, Paris, Charleston, Morrilton, Waldron, and Dardanelle entered into an agreement in 1991 to form the West River Valley Solid Waste Management District in accordance with Ark. Code Ann. § 8-6-708. The County did not provide any funding for the West River Valley Solid Waste Management District. Separate financial statements may be obtained at: 24087 Highway 164, Clarksville, AR 72830.
Fifteenth Judicial District Drug Task Force
The Prosecuting Attorney of the Fifteenth Judicial District, the Sheriff’s Departments of Yell, Conway, Scott, and Logan Counties, and the Police Departments of Paris, Booneville, Magazine, Waldron, Plainview, Ola, Dardanelle, Danville, Morrilton, Oppelo, Menifee, Mansfield, and Plumerville entered into an agreement to establish the Fifteenth Judicial District Drug Task Force. Funding was provided through a Drug Law Enforcement Program grant applied for by the Prosecuting Attorney, of the Fifteenth Judicial District. The County did not provide any funding to the Fifteenth Judicial District Drug Task Force. Financial statements of the Fifteenth Judicial District Drug Task are not available.
NOTE 14: 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; and natural disasters. These risks are covered by commercial insurance purchased from independent third parties and participation in a public entity risk pool. The amount of settlements, if any, has not exceeded the insurance coverage for each of the past three years. There were no significant reductions in insurance coverage in the major categories of risk from coverage in the prior year.
The County participates in the Arkansas Public Entities Insurance Cooperative – Workers’ Compensation Trust (APCI-WCT) public entity risk pool for workers’ compensation coverage. This program provides benefits for losses incurred by County officials, employees, volunteer fire fighters, and prisoners while performing work for the County. Rates for counties participating in this program are based on the cost experience of the particular county or group, the National Council on Workers’ Compensation Insurance and the Workers’ Compensation Commission.
The County participates in the Arkansas Public Entities Risk Management Association (APERMA) public entity risk pool for coverage in the following areas:
Building and Contents Program - This program is a blanket policy with coverage up to $100,000,000 for any one loss with a $500 deductible. The County shall pay into the program each year a charge established annually by the Risk Management Fund Board for covered county property.
Vehicle Program
A. Liability - This program may pay all sums the County legally must pay as damages because of bodily injury, death, or property damage to which this agreement applies involving a covered county vehicle and for which the County is liable. The limit of payment for in-state claims is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident ($100,000 respectively for out-of-state claims). The County shall pay into the program each year a charge established annually by the Risk Management Fund Board for covered county vehicles owned or leased by the County.
B. Physical Damage - This program covers vehicles and mobile equipment which are the property of the participating county. Property is valued at the cost to repair or replace the property after deduction for depreciation. Loss amounts will be reduced by the deductible amount of $1,000 for Sheriff’s Department vehicles and $500 for all other covered vehicles and mobile equipment. The County agrees to pay into the program each year a service charge established annually by the Risk Management Fund Board for covered property.
-17- YELL COUNTY, ARKANSAS NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014
NOTE 14: Risk Management (Continued)
General Liability Program - The program shall provide legal defense in civil rights suits against the county government of a participating county and pay judgments imposed on County officials and employees and the county government and county-formed boards and commissions. Coverage is limited to $350,000 per case with an annual aggregate of $350,000. The County shall pay into the program each year a charge established annually by the Risk Management Fund Board for this coverage.
The County also participates in the Self-Insured Fidelity Bond Program administered by the Governmental Bonding Board. This program covers actual losses sustained by the participating entity through any fraudulent or dishonest act or acts committed by any of the officials or employees, acting alone or in collusion with others, during the bond period to an amount not exceeding the lesser of $250,000 or the amount of the bond. Premiums for coverage are determined by the State Risk Manager and approved by the Board. These premiums are paid by the State Treasurer from funds withheld from the County Aid Fund. There is a $2,500 deductible per occurrence.
NOTE 15: Arkansas Public Employees Retirement System
Plan Description
The County contributes to the Arkansas Public Employees Retirement System (PERS), a cost-sharing multiple- employer defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by State law and can be amended only by the Arkansas General Assembly. The Arkansas Public Employees Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for PERS. That report may be obtained by writing to Arkansas Public Employees Retirement System, 124 W. Capitol, Suite 400, Little Rock, Arkansas 72201, by calling 1-800-682-7377, or on their website www.apers.org.
Funding Policy
PERS has contributory and non-contributory plans. Contributory members are required by code to contribute 5% of their salary. Each participating employer is required by code to contribute at a rate established by the Board of Trustees of the system based on the annual actuarial valuation. The County’s contributions to the plan for the year ended December 31, 2014 were $446,326.
NOTE 16: Subsequent Events
On March 15, 2015, the County purchased 10 2015 Dodge trucks for the Sheriff’s department at a cost of $248,140 and financed them through Chamber’s Bank at 4% interest for 48 months.
-18- YELL COUNTY, ARKANSAS Schedule 1 COMBINING BALANCE SHEET - OTHER FUNDS IN THE AGGREGATE - REGULATORY BASIS DECEMBER 31, 2014
SPECIAL REVENUE FUNDS
County Public Public Emergency Jail Treasurer's Nuclear Recorder's County Collector's Library Defender 911 Restoration Automation Response Automation Recorder Automation ASSETS Cash and cash equivalents $ 302,153 $ 3,529 $ 376,424 $ 91,227 $ 7,604 $ 51,977 $ 32,750 $ 64,282 $ 196,000 Accounts receivable 1,971 7 1,833 18 302 3,090 8,074 183 Interfund receivables 1,217
TOTAL ASSETS $ 305,341 $ 3,536 $ 378,257 $ 91,245 $ 7,604 $ 52,279 $ 35,840 $ 72,356 $ 196,183
LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 7,421 $ 600 $ 5,136 $ 55 $ 906 $ 349 $ 324 Settlements pending Total Liabilities 7,421 600 5,136 55 906 349 324
Fund Balances: Restricted 297,920 2,936 373,121 $ 91,245 7,549 51,373 35,491 72,032 $ 196,183
TOTAL LIABILITIES AND FUND BALANCES $ 305,341 $ 3,536 $ 378,257 $ 91,245 $ 7,604 $ 52,279 $ 35,840 $ 72,356 $ 196,183
-19- YELL COUNTY, ARKANSAS Schedule 1 COMBINING BALANCE SHEET - OTHER FUNDS IN THE AGGREGATE - REGULATORY BASIS DECEMBER 31, 2014
SPECIAL REVENUE FUNDS
Assessor's Public Firefighter's West Nile District Court Amendment Support Cost District Court Juvenile Defender's Circuit Court Training Virus Automation no. 79 Collections Cost Probation Investigator Automation ASSETS Cash and cash equivalents $ 984 $ 1,637 $ 6,037 $ 38,821 $ 3,789 $ 16,819 $ 10,661 $ 84,323 $ 667 Accounts receivable 134 177 773 642 2 192 Interfund receivables
TOTAL ASSETS $ 984 $ 1,637 $ 6,171 $ 38,821 $ 3,966 $ 17,592 $ 11,303 $ 84,325 $ 859
LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 242 $ 541 $ 94 Settlements pending Total Liabilities 242 541 94
Fund Balances: Restricted 742 $ 1,637 $ 6,171 $ 38,821 $ 3,966 $ 17,592 10,762 $ 84,325 765
TOTAL LIABILITIES AND FUND BALANCES $ 984 $ 1,637 $ 6,171 $ 38,821 $ 3,966 $ 17,592 $ 11,303 $ 84,325 $ 859
-20- YELL COUNTY, ARKANSAS Schedule 1 COMBINING BALANCE SHEET - OTHER FUNDS IN THE AGGREGATE - REGULATORY BASIS DECEMBER 31, 2014
SPECIAL REVENUE FUNDS
Communication County County Jail Circuit Clerk Automated Facility and County Homeland Security (Act Operation and Commissioner's Records Equipment Drug Control Clerk's Cost Security Grant 576) Grant Drug Court Maintenance Reappraisal Fee System Grant ASSETS Cash and cash equivalents $ 229 $ 12,024 $ 3,279 $ 18,331 $ 1,625 $ 5,832 $ 147,622 $ 10,363 $ 1,089 $ 183 Accounts receivable 135 40 375 37,954 Interfund receivables
TOTAL ASSETS $ 364 $ 12,024 $ 3,319 $ 18,331 $ 1,625 $ 6,207 $ 185,576 $ 10,363 $ 1,089 $ 183
LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Settlements pending Total Liabilities
Fund Balances: Restricted $ 364 $ 12,024 $ 3,319 $ 18,331 $ 1,625 $ 6,207 $ 185,576 $ 10,363 $ 1,089 $ 183
TOTAL LIABILITIES AND FUND BALANCES $ 364 $ 12,024 $ 3,319 $ 18,331 $ 1,625 $ 6,207 $ 185,576 $ 10,363 $ 1,089 $ 183
-21- YELL COUNTY, ARKANSAS Schedule 1 COMBINING BALANCE SHEET - OTHER FUNDS IN THE AGGREGATE - REGULATORY BASIS DECEMBER 31, 2014
CAPITAL PROJECTS FUND DEBT SERVICE FUNDS AGENCY FUNDS
Sales and Jail Debt County/Circuit Use Tax Service and Treasurer's Collector's Sheriff's Clerk's District Court Jail Construction Bonds 2005 Reserve Accounts Accounts Accounts Accounts Accounts Totals ASSETS Cash and cash equivalents $ 6,698,863 $ 198,663 $ 653,036 $ 212,552 $ 294 $ 13,202 $ 211,227 $ 38,089 $ 9,516,187 Accounts receivable 18,977 113,860 188,739 Interfund receivables 1,217
TOTAL ASSETS $ 6,698,863 $ 217,640 $ 766,896 $ 212,552 $ 294 $ 13,202 $ 211,227 $ 38,089 $ 9,706,143
LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 15,668 Settlements pending $ 212,552 $ 294 $ 13,202 $ 211,227 $ 38,089 475,364 Total Liabilities 212,552 294 13,202 211,227 38,089 491,032
Fund Balances: Restricted $ 6,698,863 $ 217,640 $ 766,896 9,215,111
TOTAL LIABILITIES AND FUND BALANCES $ 6,698,863 $ 217,640 $ 766,896 $ 212,552 $ 294 $ 13,202 $ 211,227 $ 38,089 $ 9,706,143
-22- YELL COUNTY, ARKANSAS Schedule 2 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - OTHER FUNDS IN THE AGGREGATE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014
SPECIAL REVENUE FUNDS
County Public Public Emergency Jail Treasurer's Nuclear Recorder's County Collector's Library Defender 911 Restoration Automation Response Automation Recorder Automation REVENUES State aid $ 63,000 $ 28,000 $ 65,000 Federal aid Property taxes 361,693 Sales taxes Fines, forfeitures, and costs $ 11,389 $ 23,987 Interest 822 20 1,123 339 $ 48 186 $ 102 $ 228 $ 743 Officers' fees 37,615 87,317 911 fees 276,354 Insurance proceeds 9,114 Treasurer's commission 16,881 Collector's commission 39,415 Other 11,522 1,516 3,630 140
TOTAL REVENUES 437,037 11,409 306,993 37,070 16,929 65,326 37,717 87,545 40,158
Less: Treasurer's commission 6,519 23 4,080 61 1,001 482 1,408 607
NET REVENUES 430,518 11,386 302,913 37,009 16,929 64,325 37,235 86,137 39,551
EXPENDITURES Current: General government 7,417 82,251 14,709 Law enforcement 14,550 31,542 23,061 Public safety 228,119 68,187 Recreation and culture 433,657 Economic development Total Current 433,657 14,550 228,119 31,542 7,417 68,187 23,061 82,251 14,709
Debt Service: Bond principal Bond interest and other charges
TOTAL EXPENDITURES 433,657 14,550 228,119 31,542 7,417 68,187 23,061 82,251 14,709
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,139) (3,164) 74,794 5,467 9,512 (3,862) 14,174 3,886 24,842
OTHER FINANCING SOURCES (USES) Transfers out (2,000) (10,000) (2,000) (2,000) (32,689) Bond proceeds
TOTAL OTHER FINANCING SOURCES (USES) (2,000) (10,000) (2,000) (2,000) (32,689)
EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (3,139) (3,164) 74,794 3,467 (488) (5,862) 12,174 3,886 (7,847)
FUND BALANCES - JANUARY 1 301,059 6,100 298,327 87,778 8,037 57,235 23,317 68,146 204,030
FUND BALANCES - DECEMBER 31 $ 297,920 $ 2,936 $ 373,121 $ 91,245 $ 7,549 $ 51,373 $ 35,491 $ 72,032 $ 196,183
-23- YELL COUNTY, ARKANSAS Schedule 2 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - OTHER FUNDS IN THE AGGREGATE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014
SPECIAL REVENUE FUNDS
Assessor's Public Firefighter's West Nile District Court Amendment Support Cost District Court Juvenile Defender's Circuit Court Training Virus Automation no. 79 Collections Cost Probation Investigator Automation REVENUES State aid $ 2,306 Federal aid $ 3,467 Property taxes Sales taxes Fines, forfeitures, and costs $ 1,905 $ 33,407 $ 4,109 $ 2,609 $ 1,602 Interest 10 21 150 $ 23 36 27 317 5 Officers' fees 3,277 3,590 911 fees Insurance proceeds Treasurer's commission Collector's commission Other
TOTAL REVENUES 3,477 1,926 2,456 3,300 33,443 7,726 2,926 1,607
Less: Treasurer's commission 30 54 111 109 5 23
NET REVENUES 3,477 1,896 2,456 3,246 33,332 7,617 2,921 1,584
EXPENDITURES Current: General government 3,600 Law enforcement 2,329 2,239 Public safety 5,244 Recreation and culture Economic development Total Current 5,244 3,600 2,329 2,239
Debt Service: Bond principal Bond interest and other charges
TOTAL EXPENDITURES 5,244 3,600 2,329 2,239
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,767) 1,896 2,456 (354) 33,332 5,288 2,921 (655)
OTHER FINANCING SOURCES (USES) Transfers out (30,000) Bond proceeds
TOTAL OTHER FINANCING SOURCES (USES) (30,000)
EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,767) 1,896 2,456 (354) 3,332 5,288 2,921 (655)
FUND BALANCES - JANUARY 1 2,509 $ 1,637 4,275 36,365 4,320 14,260 5,474 81,404 1,420
FUND BALANCES - DECEMBER 31 $ 742 $ 1,637 $ 6,171 $ 38,821 $ 3,966 $ 17,592 $ 10,762 $ 84,325 $ 765
-24- YELL COUNTY, ARKANSAS Schedule 2 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - OTHER FUNDS IN THE AGGREGATE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014
SPECIAL REVENUE FUNDS
Boating Safety Communication County County Jail and County Facility and County Clerk's Homeland Security (Act Operation and Enforcement Security Equipment Drug Control Cost Security Grant 576) Grant Drug Court Maintenance REVENUES State aid $ 1,608 $ 4,500 Federal aid $ 86,088 Property taxes Sales taxes $ 185,533 Fines, forfeitures, and costs $ 13,593 1,445 Interest 3 $ 32 21 43 Officers' fees $ 6,020 428 911 fees Insurance proceeds Treasurer's commission Collector's commission Other
TOTAL REVENUES 1,611 6,020 13,593 460 86,088 5,966 185,576
Less: Treasurer's commission 7
NET REVENUES 1,611 6,020 13,593 453 86,088 5,966 185,576
EXPENDITURES Current: General government Law enforcement 6,050 10,000 $ 550 4,293 Public safety Recreation and culture Economic development Total Current 6,050 10,000 550 4,293
Debt Service: Bond principal Bond interest and other charges
TOTAL EXPENDITURES 6,050 10,000 550 4,293
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,611 (30) 3,593 453 86,088 (550) 1,673 185,576
OTHER FINANCING SOURCES (USES) Transfers out (1,611) $ (34,378) (67,757) Bond proceeds
TOTAL OTHER FINANCING SOURCES (USES) (1,611) (34,378) (67,757)
EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (34,378) (30) 3,593 453 18,331 (550) 1,673 185,576
FUND BALANCES - JANUARY 1 34,378 394 8,431 2,866 2,175 4,534
FUND BALANCES - DECEMBER 31 $ 0 $ 0 $ 364 $ 12,024 $ 3,319 $ 18,331 $ 1,625 $ 6,207 $ 185,576
-25- YELL COUNTY, ARKANSAS Schedule 2 COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - OTHER FUNDS IN THE AGGREGATE - REGULATORY BASIS FOR THE YEAR ENDED DECEMBER 31, 2014
SPECIAL REVENUE FUNDS CAPITAL PROJECTS FUNDS DEBT SERVICE FUNDS Fire Equipment Circuit Clerk Automated Sales and Use Jail Debt and Training Commissioner's Prosecutor's Records Jail Tax Bonds Service and Reappraisal (Act 833) Fee Victim/Witness System Grant Pet Solutions Construction 2005 Reserve Totals REVENUES State aid $ 124,360 $ 61,498 $ 10,471 $ 360,743 Federal aid $ 2,000 91,555 Property taxes 361,693 Sales taxes $ 230,859 $ 556,599 972,991 Fines, forfeitures, and costs $ 13,698 107,744 Interest $ 2 $ 2,051 12 40 6,404 Officers' fees 903 139,150 911 fees 276,354 Insurance proceeds 9,114 Treasurer's commission 16,881 Collector's commission 39,415 Other 16,808
TOTAL REVENUES 124,360 61,498 905 13,698 10,471 2,000 2,051 230,871 556,639 2,398,852
Less: Treasurer's commission 14,520
NET REVENUES 124,360 61,498 905 13,698 10,471 2,000 2,051 230,871 556,639 2,384,332
EXPENDITURES Current: General government 124,360 232,337 Law enforcement 13,698 10,288 891,638 49,050 1,059,288 Public safety 61,498 363,048 Recreation and culture 433,657 Economic development 2,000 2,000 Total Current 124,360 61,498 13,698 10,288 2,000 891,638 49,050 2,090,330
Debt Service: Bond principal 180,000 180,000 Bond interest and other charges 28,048 112,243 140,291
TOTAL EXPENDITURES 124,360 61,498 13,698 10,288 2,000 891,638 208,048 161,293 2,410,621
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 905 183 (889,587) 22,823 395,346 (26,289)
OTHER FINANCING SOURCES (USES) Transfers out (3,882) (186,317) Bond proceeds 7,588,450 371,550 7,960,000
TOTAL OTHER FINANCING SOURCES (USES) (3,882) 7,588,450 371,550 7,773,683
EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (3,882) 905 183 6,698,863 22,823 766,896 7,747,394
FUND BALANCES - JANUARY 1 14,245 184 194,817 1,467,717
FUND BALANCES - DECEMBER 31 $ 10,363 $ 0 $ 1,089 $ 0 $ 183 $ 0 $ 6,698,863 $ 217,640 $ 766,896 $ 9,215,111
-26- YELL COUNTY, ARKANSAS NOTES TO SCHEDULES 1 AND 2 DECEMBER 31, 2014
The following funds and descriptions represent all funds reported as other funds in the aggregate.
Fund Name Fund Description
County Public Library Ark. Code Ann. § 13-2-404 and Yell County Ordinance no. 2002-7 (November 11, 2002) established fund to account for property tax millage levied by the quorum court for the support, operation, and maintenance of the public library. Public Defender Ark. Code Ann. § 16-10-307 established the County Administration of Justice Fund which continued to finance this fund used for defense of indigents. Emergency 911 Ark. Code Ann. § 12-10-318 established fund to receive fees collected by telephone providers for 911 emergency services. Jail Restoration Ark. Code Ann. § 16-10-307 established the County Administration of Justice Fund which continued to finance this fund for maintenance of the county jail. Treasurer's Automation Ark. Code Ann. § 21-6-302 established fund to receive up to 10% of treasurer's gross commissions to operate the treasurer's office and to purchase, maintain, and operate an automated record keeping system. Nuclear Response Ark. Code Ann. § 19-6-435 established a fund to be used for operation and maintenance of the Arkansas Nuclear and Planning Program. Recorder's Automation Ark. Code Ann. § 21-6-413 established fund to receive at least 35% of fees collected by county clerks to be used to purchase, maintain, and operate an automated records system. County Recorder Ark. Code Ann. § 21-6-306 established fund to receive at least 25% of the fees collected by circuit clerks to be used to purchase, maintain, and operate automated records system. Collector's Automation Ark. Code Ann. § 21-6-305 established fund to receive up to 10% of collector's gross commissions to operate the collector's office and to purchase, maintain, and operate an automated record keeping system. Firefighter's Training Federal grant fund established for fire safety and training. West Nile Virus Federal grant fund established for the eradication of mosquitoes. District Court Automation Ark. Code Ann. § 16-13-704 established fund to receive district court installment fees to be used solely for district court- related technology. Assessor's Amendment no. 79 Ark. Code Ann. § 26-26-310 provides that 1% of the county's share of surplus funds from the Property Tax Relief Trust Fund be allocated to county assessors for the costs of administering Arkansas Constitution, Amendment no. 79. Support Cost Collections Ark. Code Ann. § 9-10-109 established fund to receive fees to offset administrative costs in the clerk's office.
-27 - YELL COUNTY, ARKANSAS NOTES TO SCHEDULES 1 AND 2 DECEMBER 31, 2014
The following funds and descriptions represent all funds reported as other funds in the aggregate.
Fund Name Fund Description
District Court Cost Ark. Code Ann. § 16-17-126 authorizes district court filing fees for writs of garnishment and executions to be appropriated for any permissible use in the administration of the District Court. Juvenile Probation Ark. Code Ann. § 16-13-326 established fund to receive juvenile fees to provide services and supplies to juveniles at the discretion of the juvenile division of Circuit Court. Public Defender's Investigator Ark. Code Ann. § 16-10-307 established the County Administration of Justice Fund which continued to finance this fund used for defense of indigents. Circuit Court Automation Ark. Code Ann. § 16-13-704 established fund to receive circuit court installment fees to be used for circuit court-related technology and to defray the cost of fine collection. Boating Safety and Enforcement Ark. Code Ann. § 27-101-111 established fund to receive fees to be used for operating a patrol on the waterways within a county or for emergency rescue services if the county has not established a patrol. County Security Federal grant fund established for updating the security system at the courthouse. Communication Facility and Equipment Ark. Code Ann. §§ 21-6-307, 12-41-105 established fund to receive 25% of sheriff's fees collected and phone commission funds to be used for communications equipment and repair and to train operations staff. Drug Control Ark. Code Ann. § 5-64-505 established fund to receive asset forfeitures resulting from drug offense cases due to arresting agency. County Clerk's Cost Ark. Code Ann. § 16-20-407 established fund to account for a $2 marriage license fee to be used for operation of the county clerk's office. Homeland Security Grant Established to account for grants received from Arkansas Department of Emergency Management for the purpose of purchasing equipment. County Security (Act 576) Grant Ark. Code Ann. § 16-10-1006 established fund for the purpose of providing financial assistance to local governments to assist in the implementation of local security and emergency preparedness plans for circuit and district courts. Drug Court Ark. Code Ann. § 16-98-304 established fund to receive program user fees set by drug court judges to be used for the benefit and administration of the drug court program. County Jail Operation and Established by Yell County Ordinance no. 2014-4 (March 13, 2014) to account for monies dedicated to the operation and Maintenance maintenance of the new jail.
-28 - YELL COUNTY, ARKANSAS NOTES TO SCHEDULES 1 AND 2 DECEMBER 31, 2014
The following funds and descriptions represent all funds reported as other funds in the aggregate.
Fund Name Fund Description
Reappraisal Ark. Code Ann. § 26-26-1907 established fund to pay reappraisals of real property with revenue received from State. Fire Equipment and Training (Act 833) Ark. Code Ann. § 14-284-403 requires fire protection premium tax funds to be distributed by the county to local fire districts for equipment, training, capital improvements, insurance for buildings, utility costs, or other expenditures necessary for upgrading fire service. Circuit Clerk Commissioner's Fee Ark. Code Ann. § 21-6-412 established fund to receive fee awarded, when appointed as Commissioner, for a sale of real or personal property under judicial decree. The funds are to be used to offset administrative costs associated with the performance of the Commissioner's duties and for general operations expenses of the office of Circuit Clerk. Prosecutor's Victim/Witness Ark. Code Ann. § 16-21-151 established fund to receive District Court costs levied to be used by Prosecuting Attorney for operating Victim/Witness program. Automated Records System Grant Established to account for a grant received through the Association of Arkansas Counties to be used specifically for circuit court technology. Pet Solutions Yell County Ordinance no. 2013-2 (January 3, 2013) set up the Pet Solutions fund to account for a federal grant through the Arkansas Department of Economic Development. The grant was used to build a pretreatment sewer pond, needed to bring the Pet Solutions company to Yell County, Arkansas. Jail Construction Established by Yell County Ordinance no. 2014-4 (March 13, 2014) to account for sales tax funds pledged to the related bonds issued for the construction of the new County Jail. Sales and Use Tax Bonds 2005 Yell County Ordinance no. 2005-13 (September 12, 2005) approved issuance of bonds ($1,725,000) and established a fund for debt payments from the 0.125% sales tax approved by voters. Jail Debt Service and Reserve Established by Yell County Ordinance no. 2014-4 (March 13, 2014) to account for sales tax funds pledged to the related debt service of bonds issued to construct the new County Jail. Treasurer's accounts consist primarily of Treasurer's commissions and interest not yet distributed to the appropriate entities. Collector's accounts consist primarily of delinquent taxes not yet distributed to the various taxing units. Sheriff's accounts consist primarily of fees settlement, bond, evidence, and inmate trust money. County/Circuit Clerk's accounts consist of fee and trust money and settlements due to Treasurer. District Court accounts consist primarily of fines and costs not yet distributed to the county and/or state.
-29 - YELL COUNTY, ARKANSAS Schedule 3 OTHER INFORMATION SCHEDULE OF CAPITAL ASSETS DECEMBER 31, 2014 (Unaudited)
December 31, 2014
Land $ 191,076 Construction in progress 705,638 Buildings 7,148,544 Equipment 4,508,292
Total $ 12,553,550
-30- YELL COUNTY, ARKANSAS Schedule 4-1 SCHEDULE OF SELECTED INFORMATION FOR THE LAST FIVE YEARS - REGULATORY BASIS DECEMBER 31, 2014 (Unaudited)
General 2014 2013 2012 2011 2010 Total Assets $ 1,575,051 $ 1,298,423 $ 1,450,664 $ 1,615,902 $ 1,797,751
Total Liabilities 649,046 84,436 81,210 115,545 154,911
Total Fund Balances 926,005 1,213,987 1,369,454 1,500,357 1,642,840
Net Revenues 4,944,822 4,950,629 4,641,763 4,489,291 4,595,261
Total Expenditures 4,679,307 4,814,218 4,606,554 4,667,355 4,226,885
Total Other Financing Sources/Uses (553,497) (291,878) (106,239) (31,064) (337,229)
General Fund $5,000,000 $4,500,000 $4,000,000 2014 $3,500,000 2013 $3,000,000 $2,500,000 2012 $2,000,000 2011 $1,500,000
$1,000,000 2010 $500,000 $0 Total Assets Total Liabilities Total Fund Net Revenues Total Balances Expenditures
-31 - YELL COUNTY, ARKANSAS Schedule 4-2 SCHEDULE OF SELECTED INFORMATION FOR THE LAST FIVE YEARS - REGULATORY BASIS DECEMBER 31, 2014 (Unaudited)
Road 2014 2013 2012 2011 2010 Total Assets $ 656,150 $ 104,824 $ 15,641 $ 399,605 $ 323,976
Total Liabilities 38,551 28,304 12,247 33,730 40,440
Total Fund Balances 617,599 76,520 3,394 365,875 283,536
Net Revenues 2,141,622 1,732,082 1,658,998 1,816,478 1,909,914
Total Expenditures 2,340,357 2,143,354 2,287,936 2,236,389 2,375,969
Total Other Financing Sources/Uses 739,814 484,398 540,000 502,250 565,000
Road Fund $2,500,000 $2,250,000 $2,000,000 2014 $1,750,000 2013 $1,500,000 $1,250,000 2012 $1,000,000 2011 $750,000 $500,000 2010 $250,000 $0 Total Assets Total Liabilities Total Fund Net Revenues Total Balances Expenditures
-32 - YELL COUNTY, ARKANSAS Schedule 4-3 SCHEDULE OF SELECTED INFORMATION FOR THE LAST FIVE YEARS - REGULATORY BASIS DECEMBER 31, 2014 (Unaudited)
Other Funds in the Aggregate 2014 2013 2012 2011 2010 Total Assets $ 9,706,143 $ 1,893,547 $ 2,257,632 $ 1,933,458 $ 2,111,031
Total Liabilities 491,032 426,014 779,768 468,995 533,564
Total Fund Balances 9,215,111 1,467,533 1,477,864 1,464,463 1,577,467
Net Revenues 2,384,332 1,844,066 2,183,497 1,568,514 1,736,399
Total Expenditures 2,410,621 1,661,877 1,955,618 1,364,144 1,487,296
Total Other Financing Sources/Uses 7,773,683 (192,520) (218,478) (250,729) (227,771)
Other Funds in the Aggregate $10,000,000 $9,000,000 $8,000,000 2014 $7,000,000 2013 $6,000,000 $5,000,000 2012 $4,000,000 2011 $3,000,000
$2,000,000 2010 $1,000,000 $0 Total Assets Total Liabilities Total Fund Net Revenues Total Balances Expenditures
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