Overview/Strategic Plan
Director
The Director of Accounts and Budgets is a state-mandated position as legislated in Tennessee Code Annotated (TCA) § 5-13-103. The Director is appointed by the County Mayor and subsequently ratified by the County legislative body. The Director of Accounts and Budgets is mandated by TCA §5-13-104 to establish and maintain a “system of fiscal procedure, control, and centralized accounting...to accurately reflect the assets, liabilities, income and expenditures of each fund of the County...” The Director of Accounts and Budgets also serves on many County committees and boards: Budget Committee (ex-officio secretary, TCA § 5-12-104), Personnel Advisory Committee (voting member), Bi- County Board Member (ex-officio), E-911 District Board (ex-officio), Montgomery County Rail Authority (ex officio), Conservation Board (ex officio), Clarksville-Montgomery County Insurance Trust (voting member), Montgomery County Human Resources Agency (board member), Building Advisory Committee (ex-officio), Committee on Investment (voting member), and Information Systems Committee (voting member) and Audit Committee.
General Information
- Montgomery County operates under the County Fiscal Procedure Law of 1957 (TCA §5-13) and the County Budgeting Law of 1957 (TCA §5-12).
- Montgomery County Government and Clarksville-Montgomery County Schools operate on a July 1 to June 30 fiscal year.
- Tennessee state law does not allow the school board the authority to issue its own debt; therefore, all other financing sources are legislated by the County Commission and included in the County’s debt.
- The department of Accounts and Budgets provides financial management and financial operations for the Emergency Communication District (E911), Bi-County Landfill and Solid Waste Management, and the Montgomery County Rail Authority. Each of these services is maintained in a separate fund and is not supported by the annual tax levy and other revenue sources that support the County’s governmental activities.
Accounts Payable
Without a doubt, the largest operation in Accounts and Budgets is Accounts Payable. Accounts Payable involves three staff members in varying degrees—pre-audit, entry and processing, and independent verification. In fiscal year 2010, Accounts and Budgets cut 10,988 checks which included the processing of 26,568 invoices for a total amount of checks cut of $44,085,390.
Accounts Payable doesn’t stop after the check is cut. Accounts and Budgets maintains W-9 information for 4,799 active vendors. In fiscal year 2010, 2096 vendors were paid through the payables process. Accounts and Budgets prides itself on accuracy and timeliness. The Accounts and Budgets employees assist the county officials, commissioners, employees and the general public with any questions related to the financial aspects of the county. The Accounts and Budgets staff strives to be good stewards of public funds.
Accounts Receivable
Accounts and Budgets is mandated by the Tennessee Code Annotated (TCA) § 5-21-103 to account for the receipting of all revenues from County departments, County constitutional offices, schools, and all funds maintained by the County government. In fiscal year 2010, journal entries and cash receipt transactions were entered totaling $ 478,020,419.
Accounts and Budgets also works closely with the Industrial Development Board in processing annual billing for local Payment in lieu of Taxes (PILOTS) agreements. In fiscal year 2010, a total of 21 contracts were actively maintained for a total of $725,339 in real and personal property billing.
Montgomery County Government leases building space to several State and non-profit entities, and also enters into inter-local agreements with other local governments. Accounts and Budgets reconciles 17 leases contracts and agreements for an annual total exceeding $1,500,000.
General Accounting
Accounts and Budgets manages thirteen funds and account groups including, but not limited to; County General, Highway, Debt Service, Worker’s Compensation, On-the-Job Injury, Unemployment, Bi County Solid Waste and the Clarksville Montgomery County Communications District. The Chart of Accounts includes 4806 active accounts with a total of 6,268 accounts. Each month, twelve funds are reconciled to the Trustee (cash accounts only).
Capital Assets: Accounts and Budgets manages a total of 3,126 capital assets with a total book value of $217,965,032; Infrastructure accounts for 1185 assets and a total of 22% of the total value; and land accounts for 1025 assets and a total of 12% of the total value.
Payroll: Accounts and Budgets is also responsible for reconciling payroll liability accounts and payroll tax reporting. Each week the payroll taxes are reported to the Internal Revenue Service; 107 payroll liability accounts are reconciled monthly; each quarter the 941 Employer’s Quarterly tax returns are filed; and annually W-2s are reconciled and reported for approximately 1000 employees from seven funds. In fiscal year 2010, Accounts and Budgets processed 5,300 payroll checks and 21,300 direct deposit advices.
ARRA: The federal government began issuing grants under the provisions of the American Recovery and Reinvestment Act (ARRA). ARRA requires unprecedented accountability and transparency to obtain these types of grant funds. The act requires increased reporting standards, separation of ARRA funds from normal grants and the designation of a County Official as primarily responsible for the maintenance and reporting of ARRA funds. The Montgomery County Mayor appointed the Accounts and Budgets Director as that official.
Grants Management
In fiscal year 2010 Accounts and Budgets managed the administration of 43 grants from other local, state and federal agencies totaling $7,221,164. Some of the largest grants received by Montgomery County for the 2010 fiscal year are the Homeland Security District Seven, Community Corrections, the Tennessee Department of Health and Safety Women and Infant Care (WIC) program, and the Juvenile Court Day Treatment program. All grants from the State and Federal governments are reimbursement grants. This makes the task of accurate record-keeping and reporting extremely important so that the full grant award is realized and does not become the liability of the local public funds.
Debt Management
The Department of Accounts and Budgets is responsible for the maintenance of the Debt Service Fund. Montgomery County Debt is used to fund capital projects. The projects are primarily, but not limited to construction of County buildings and facilities, and major repairs and renovations of the county infrastructure. Careful management of the Debt Service Fund ensures that the County receives the most favorable interest rates on borrowings in order to minimize the county interest costs and debt service fees.
The County currently utilizes the following debt structures to fund its capital needs; bonds, capital outlay notes, QZAB bonds, and QSCB Bonds. Bonds are long term debt instruments that are generally paid off in fifteen to twenty years. Capital outlay notes are long term instruments generally paid off in the three to five year range. Qualified Zone Recovery Bonds and Qualified School Construction bonds are obtained through the State of Tennessee, and used to build and renovate School buildings. The debt is made up of general county debt and school related debt. Currently the debt is seventy percent School System and thirty percent general County Government debt. The County also restructures old debt to more favorable terms as more favorable terms become available. For the fiscal year 2010 the total debt service paid was $113,253,151 including principal and interest payments, debt issuance charges, and debt service registration and maintenance fees. During the fiscal year 2010 the county issued refunding debt of $74,155,000 that will save the County $3,193,564 over the life of the issue. In the fiscal year 2011, the projected debt service for the year is $ 32,291,174.
Bonds – The County currently has eleven active bonds payable that each have interest due once a year and principal and interest due once a year for a total of twenty-two payments.
Capital Outlay Notes – the County currently has three active capital outlay notes. Two have interest due once a year and a principal and interest payment due once a year for a total of four payments. The other note has principle and interest due once a year.
QZAB – the County currently has two QZAB Loans from the State of Tennessee that require two payments per year.
QSAB – the County has one QSCB Loan from the State of Tennessee obtained to renovate a County School. This loan requires monthly principal and interest payments to be wired out of a special account.
Variable Rate Loan – the County has a variable rate loan through the Public Building Authority that requires monthly interest payments for a total of twelve. These funds were used to build a School Building. The total number of payments for the year is twelve. Principal is paid once a year.
BABS – The County issued Build America Bonds in fiscal year 2010. These bonds exist as a provision of ARRA. The County issued these bonds to receive an interest rebate from the IRS for Thirty-five percent of the interest due on the bond. Interest on the BAB’s bond is paid twice a year. In order to receive the rebate the IRS requires that form 8038-CP be filed within forty-five days of the interest payment date to be issued the rebate by the IRS.
Accounts and Budgets is critical in obtaining a favorable credit rating that will allow the County to obtain more favorable interest rates and a better quality of investor will be interested in our debt. The County Accounts and Budgets has the obligation to assist in the decision to obtain debt financing and is critical in the bid award process.
Capital Projects Funds
The Accounts and Budgets Department is responsible for maintaining the County’s Capital Projects Fund. Currently the County has parks and recreation projects underway, in addition to several equipment and facility upgrades. Projects that are over $500,000 are mandated to have retainage accounts opened in the name of the County and the bid-awarded contractor. Retainage accounts are used to put a portion of funds due a contractor, usually ten percent, aside until the completion of the project to mitigate the county’s loss should a contractor fail to complete a project. These accounts are maintained and verified monthly. Construction will begin soon on a new WIC Clinic that will be paid from grant proceeds.
The Rail Authority is an entity that is governed by a board appointed by the Mayors of Montgomery County and the City of Clarksville. The Rail Authority records are maintained by Montgomery County. Therefore, the bookkeeping responsibilities are performed by the Accounts and Budgets Department. The Rail Authority obtained a grant in the beginning of the fiscal year 2011 for $2,853,195 for the rehabilitation of the R J Corman Railroad Bridge. This project will increase transaction activity of the Rail Authority significantly.
Other Funds and Responsibilities
Worker’s Compensation Fund
The Workers’ Compensation Fund is reconciled monthly in the Accounts and Budgets Department in order to insure proper disbursement to the appropriate county funds.
Unemployment Compensation Fund
Unemployment Compensation Fund is reconciled and checks are written monthly for any unemployment paid by the County and the School System to the State of Tennessee. The reconciliation is done for the purpose of applying the payments to the proper departments.
19th Judicial District Drug Task Force
19th Judicial District Drug Task Force is maintained for the purpose of administering drug control grant and property seized and forfeited as a result of drug related crimes. The Accounts and Budgets Department issues checks for the expenses and receives and records the revenue obtained by the District.
Drug Control Fund
The Drug Control Fund is a special revenue fund used to maintain drug related fines separately to offset the expense of drug enforcement related activities of the County. These funds are restricted legislatively for the purpose of drug control. The Accounts and Budgets Department reconciles the cash account monthly and issues checks to cover the expenses of the fund.
Financial Statements
The County’s Consolidated Annual Financial Report (CAFR) is prepared by the Division of County Audit of the State of Tennessee. Accounts and Budgets is required to have individuals that are capable of assisting in the preparation of the CAFR. The Division of County Audit performs an Independent Audit of the records of the County on an annual basis. The Accounts and Budgets staff is required to maintain records that satisfy all Federal, State and Local laws. The component units for which Accounts and Budgets maintains records are also audited by Independent Auditors. The Accounts and Budgets Department also answers to other Federal and State departments for the proper administration of grants funds and Department of Homeland Security, the Administration of Justice, the Department of Environment and Conservation the Department of Corrections and other state and local governments. Should the county expend more than $500,000 in federal grants, they are required to submit a single audit under the provision of the Office of Management and Budget of the Federal government. This audit is done at the same time as the regular county audit.
Component Units and Other Entities
Accounts and Budgets is responsible for the recordkeeping of several of the County’s Component Units. Bi-County Solid Waste Management, the Montgomery County Emergency Communications District, and the Montgomery County Rail Authority are government entities for which Accounts and Budgets has the responsibility of providing full accounting services. That responsibility includes interacting with the management and boards of these entities and providing relevant financial and budgetary information in order for those bodies to make decisions for the entity’s best interest.
The County has three entities that it fully funds, but does not have management authority. The Clarksville-Montgomery County Library, Industrial Development Board, and Tourism have their own management teams and boards, but are dependent on the county for operating funds. The Accounts and Budgets Department is responsible for ensuring that these entities receive any funds due to them in a timely manner. The Account and Budgets Department reviews the yearly Independent Auditor’s report for inclusion in the County CAFR.
Budgeting
Montgomery County Government and its component units participate in an annual budget appropriation process. This process as required by state law includes publishing the proposed operating budget as well as conducting a public hearing. The budget appropriation resolution and tax levy resolution are then presented in a County Commission meeting for vote.
Accounts and Budget working closely with the County Mayor, prepares budgets for ten funds, including 522 revenue accounts and 3,833 expenditure accounts. These funds account for ninety-six entities including not only County department and Constitutional offices, but also component units, special revenue funds of the County and local non-profits.
Strategic Plan 2010
Mission Statement
The mission of the Department of Accounts & Budgets is to provide budgeting, accounting, transaction, and quality financial expertise and information to elected officials, staff, other stakeholders, and citizens of Montgomery County in compliance with legal requirements and policies so that they can consistently and responsively meet their financial management needs.
Issues
- Population growth of Montgomery County will result in an increased need in county services that will require additional accounting and budgeting support.
- Increasing transparency required by regulatory agencies and the public regarding operations and reporting.
- Annual changes in reporting requirements and the necessary staff development for implementation.
Programs
Accounting and Financial Reporting Program
To provide receipting and payment posting services to all county
departments so that receipts and payments are processed efficiently and
accurately.
To provide reporting and results of operations to the County Commission, County Departments, State and Federal Agencies, and the public in a timely and accurate manner.
Budgeting and Financial Management Program
The purpose of the Budgeting and Financial Management Program is to
provide timely and accurate information such as spending authorizations
and sources of revenue (as defined by the County Commission) so that
county departments can provide services and programs to the public.
Billing and Collections Program
To provide efficient and accurate billing to patients and insurance
providers in order to maximize revenue collection and to minimize use of
public funds for emergency medical services.
Goals
The department of Accounts & Budgets will continue to operate at current staffing while implementing new GASB pronouncements and reporting requirements and to be efficient and effective with public funds.
Results
- 0% increase in staff size.
- 100% application of GASB pronouncements and reporting requirements.
Outputs
- No increase in staff size.
- All GASB pronouncements and reporting requirements implemented as per the standard.
Demands
- Number of GASB pronouncements and reporting requirements for the fiscal year.
Efficiencies
- Increased services provided with no increase in employees.
Goals
The department of Accounts & Budgets will continue to operate at current staffing while implementing new GASB pronouncements and reporting requirements and to be efficient and effective with public funds.
Results
- 0% increase in staff size
- 100% application of GASB pronouncements and reporting requirements.
Outputs
- No increase in staff size.
- All GASB pronouncements and reporting requirements implemented as per the standard.
Demands
- Number of GASB pronouncements and reporting requirements for the fiscal year.
Efficiencies
- Increased services provided with no increase in employees.
Goals
By fiscal year planning for 2012, the budget document will be presented in a form consistent with mandatory criteria for the GFOA Distinguished Budget Presentation Award.
Results
- 100% compliance with GFOA Distinguished Budget Presentation Award criteria.
- Fully implemented Performance-Based Budgeting in Montgomery County.
- Comprehensive financial policies.
Outputs
- Number of criteria in GFOA Budget Presentation Award.
Demands
- Number of County departments and Offices.
- Number of other entities managed.
Efficiencies
- Increased transparency to stakeholders of government operations and stewardship of public funds.
- Increased communication from published policies and financial plan.
Goals
Increase the use of technology to maximize earnings potential and minimize costs.
Results
- Percent of revenue received from electronic receipting.
- Percent of insurance providers used.
Outputs
- Number of Montgomery County residents that use EMS.
- Number of accounts managed.
- Number of insurance claims processed.
Demands
- Number of Montgomery County residents.
- Number of patient accounts.
- Number of Ambulance runs.
Efficiencies
- Maximum productivity at minimum cost to taxpayers.
