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.
- 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'sgovernmental activities.
- The department of Accounts and Budgets provides financial operations for The Clarksville-Montgomery County Regional Airport Authority and the Clarksville Montgomery County Library.
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 2013, Accounts and Budgets cut 13,263 checks which included the processing of 29,189 invoices for a total amount of checks cut of $65,010,849.
Accounts Payable doesn't stop after the check is cut. Accounts and Budgets, in conjunction with purchasing, maintains W-9 information where applicable for 6,393 active vendors. In fiscal year 2013, 2,247 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 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 2013, journal entries and cash receipt transactions were entered totaling $ 516,833,724.
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 2013, a total of 10 contracts were actively maintained for a total of $577,402 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.
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 4,549 active accounts with a total of 7,298 accounts. Each month, thirteen funds are reconciled to the Trustee (cash accounts only).
Capital Assets: Accounts & Budgets reports for both governmental and proprietary (E911 & Bi-County) capital assets. As of FY13 the department managed over 2985 active governmental and proprietary capital assets. The increase in Capital Assets from the previous year is accounted for by the addition of County Library capital assets. Each asset is identified as one of ten major classes of assets: Land, Building & Improvements, Infrastructure, Furniture & Fixtures, Other Machinery & Equipment, Construction in Progress, Other Fixed Assets, and Intangible.
Of the 2985 active capital assets, 35% of the assets on the book are identified as governmental, county owned, with a full cost of $191,296,049. The bulk of the values of capital assets are classified under the Building & Improvements category at $109,541,767 or 57% of the overall full cost. Of primary government activities, the Highway Department holds 35% of capital assets valuing at the close of FY13, $67,004,395. The total book value through June 30th,2013 for governmental capital assets totaled $131,129,254.
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; 127 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 1,195 employees from seven funds. In fiscal year 2013, Accounts and Budgets processed 3,871 payroll checks and 24,291 direct deposit advices. Accounts and Budgets is responsible for oversight of monthly reports filed with theTennessee Consolidated Retirement System. The payroll bank account that clears all county payroll checks is reconciled monthly in Accounts and Budgets.
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.
Accounts and Budgets manage the financial aspects of federal, local, and state grants received on behalf of Montgomery County. In addition, Accounts & Budgets is also responsible for the financial grant management for component units, such as the Rail Authority, Bi-County, and E-911. Extensive reviews of grant agreements are made through the department to ensure compliance with all applicable rules and regulations, and to ensure funds are expended in accordance to the budget in the grant agreement. 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.
In FY13 Single Audit for Montgomery County, excluding the Clarksville-Montgomery County School System, managed over twenty-nine active grants, had $1,039,995 in federal funded and $3,156,034 in state funded grant expenditures from grants received through June 30, 2013. The County had a total of $4,196,029 in expenditures reimbursed through grant awards.
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-four percent School System and twenty-six 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 2013 the total debt service paid was $92,524,961 including principal and interest payments, debt issuance charges, and debt service registration and maintenance fees. During the fiscal year 2013 the county issued two refunding debt issues totaling $54,753,782 that will save the County $5,463,885 over the life of the issues. Also issued in fiscal year 2013 was general obligation debt of $11,330,000. In fiscal year 2014, the projected debt service for the year is $ 36,369,906.
Bonds – The County currently has thirteen active bonds payable that each have interest due once a year and principal and interest due once a year for a total of twenty-six payments.
Capital Outlay Notes– the County currently has one active capital outlay note. It has principal and interest due once ayear.
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.
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.
Projects that are currently underway in fiscal year 2013 are:
- RichEllenPark Construction
- EMS Station 23 Construction
- County Wide Phone System Upgrade
- Oakland Road Realignment
- Veterans Plaza Sewer Project
- Veterans Plaza Parking lot renovation
Accounts and Budgets assists with the budgeting for the five year capital improvement plans that are prepared by the various County Departments. This is critical to match the capital requests with the funding mechanisms available to the County so that the plans can be implemented on time.
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.
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 record keeping 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.
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 Budgets works closely with the County Mayor to perform all duties prescribed by the County Budget Law of 1957, prepares budgets for ten funds, including 677 revenue accounts and 2,926 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.
Throughout the year Accounts and Budgets works with each department by sending out monthly Year to Date Budget Reports and helps monitor their department's budget. Account and Budgets also makes the necessary budget amendment entries throughout the year, as well as a quarterly resolution that is passed by the County Commission.