The following statement was released by the Smith County Schools Information Team:

With the 2023 audit report for the Office of Director of Schools being released on March 19, 2024, the General Purpose fund balance was not mentioned in the posts shared on social media. For the sake of full transparency, the audit reported our General Purpose Fund Balance as of June 30, 2023, at $10,937,297.  

In response to audit finding 2023-001 DEFICIENCIES WERE NOTED IN AMOUNTS REPORTED AS COMPENSATION FOR THE DIRECTOR OF SCHOOLS TO THE TENNESSEE CONSOLIDATED RETIREMENT SYSTEM, we contacted TCRS as instructed, received guidance, and have moved forward with their recommendation.

In response to audit finding 2023-002 THE SCHOOL DEPARTMENT WAS ASSESSED A PENALTY OF $59,509 BY THE INTERNAL REVENUE SERVICE FOR NONCOMPLIANCE WITH THE AFFORDABLE CARE ACT.  In 2014, the Board met in a special-called meeting to discuss the Affordable Care Act. A significant study was conducted and all budgetary items were considered. The Board, at that time, decided that they could not feasibly expand medical coverage for all employees without asking for a tax increase and amended the budget to cover potential costs for the assessment of the penalty.  In order to be in compliance with the Affordable Care Act and remove the finding, The Board of Education will discuss providing medical insurance for full-time, non-certified employees at the April board meeting with an estimated cost of $1,600,000 annually.

In response to audit finding 2023-003 MATERIAL AUDIT ADJUSTMENTS WERE REQUIRED FOR PROPER FINANCIAL STATEMENT PRESENTATION, $714,481 was referenced in the finding, with specific mention to property tax receivables.  All property tax revenue was fully and completely posted in our books for 2023; however, audit did ask that the balance sheet be updated to classify the revenue in parts as property tax receivables, allowance for uncollectible taxes, deferred current taxes, deferred delinquent taxes, and current property tax.  Moving forward property tax receivables will be classified as instructed in order to be in compliance with audit.

There has been some public comment about the management’s lack of response to the audit report. According to audit regulations, a management’s response is not mandatory.  We were required and did submit a Corrective Action Plan detailing a plan to correct any findings.

Mr. Smith and the Board of Education share the same financial plan:  manage spending so that we are financially prepared to support the district’s strategic plan.  This approach ensures that financial resources are allocated in a manner that best serves the needs and objectives of our system and are used efficiently to benefit students, staff, and the community as a whole, all while not asking the County for any tax increase.

If you have any further questions, feel free to reach out to our CFO, Norma Mitchell  at mitchelln@smithcoedu.net.

The state has released its audit report on the basic financial statements of Smith County as of and for the year ended June 30, 2023.

According to the report from the Tennessee Comptroller’s Office, “Our audit resulted in four findings and recommendations, which we have reviewed with Smith County management. Detailed findings, recommendations, and management’s responses are included in the Single Audit section of this report.”

To see the full annual financial report visit: https://comptroller.tn.gov/content/dam/cot/la/documents/county/2023/FY23SmithAFR.pdf

The following are summaries of the audit findings:

OFFICE OF DIRECTOR OF ACCOUNTS AND BUDGETS

FINDING 2023-001: THE SOLID WASTE DISPOSAL FUND HAD A DEFICIT IN UNRESTRICTED NET POSITION
(Internal Control – Significant Deficiency Under Government Auditing Standards)
The Solid Waste Disposal Fund had a deficit of $15,384,533 in unrestricted net position at
June 30, 2023. This deficit resulted from the recognition of a liability of $20,798,473 in the
financial statements for costs associated with closing the county’s landfill and monitoring the landfill for 30 years after its closure. Generally accepted accounting principles and state statutes require that such costs be reflected in the financial statements. This deficiency is the result of management’s failure to correct the findings reported in prior-year audit reports.
RECOMMENDATION
County officials should develop and implement a plan that would fund the deficit in
unrestricted net position.
MANAGEMENT’S RESPONSE – DIRECTOR OF ACCOUNTS AND BUDGETS
I concur with this finding. The Solid Waste Disposal Fund is a proprietary fund that has a
liability for the closure, post-closure and monitoring costs for 30 years after its closure. Smith County does some of the closure and post-closure work ourselves to cut down on costs. The closure and post-closure cost will be spread out over several years as each cell meets its full capacity. After the closure of the landfill, money left in the Solid Waste Fund will pay for the 30-year monitoring cost. If and when that money is depleted, the Smith County Tax Base will assume the costs of monitoring. With favorable conditions, it is Smith County’s goal to reduce the deficit through contracts and cell management.

OFFICE OF DIRECTOR OF SCHOOLS

FINDING 2023-002: DEFICIENCIES WERE NOTED IN AMOUNTS REPORTED AS COMPENSATION FOR THE DIRECTOR OF SCHOOLS TO THE TENNESSEE CONSOLIDATED RETIREMENT SYSTEM
(Noncompliance Under Government Auditing Standards)
Deficiencies were noted in amounts reported as compensation for the director of schools
(director) to the Tennessee Consolidated Retirement System (TCRS). The director’s contract provides that the board of education shall pay the director annual compensation as follows:
a. The base BEP Allocation Director’s Salary from the State of Tennessee;
b. The Medicare withholding;
c. The Social Security withholding;
d. The family health care plan premium; and
e. Dental and vision insurance.
The contract also states, “The cumulative amounts shown above shall be the base salary for purposes of TCRS Retirement Benefits.” Section 8-34-101(14)(A), Tennessee Code Annotated, states, “Earnable compensation means the compensation payable to a member for services rendered to an employer.” Auditors asked TCRS to review the director’s contract to determine if all amounts reported met the definition of earnable compensation. TCRS advised that the base BEP allocation salary from the state is the only amount that constitutes “earnable compensation” for retirement purposes. The amounts for subsections (b) – (e) of the director’s contract do NOT constitute “earnable compensation” for retirement purposes. This deficiency is the result of a lack of management oversight. As a result of this deficiency, amounts reported to TCRS for the director have been overstated and could potentially inflate future retirement benefits. We have reported this finding to TCRS.
RECOMMENDATION
Only earnable compensation should be reported to TCRS. The school department should contact TCRS to find out what steps should be taken to correct this deficiency.
MANAGEMENT’S RESPONSE – DIRECTOR OF SCHOOLS
No formal management response was submitted. An explanation to the finding is included in the Corrective Action Plan.

FINDING 2023-003: THE SCHOOL DEPARTMENT WAS ASSESSED A PENALTY OF $59,509 BY THE INTERNAL REVENUE SERVICE FOR NONCOMPLIANCE WITH THE AFFORDABLE CARE ACT
(Noncompliance Under Government Auditing Standards)
During the year, the school department paid a penalty of $59,509 to the Internal Revenue
Service for failure to comply with the Affordable Care Act for 2020. The school department
provides health insurance coverage to its employees; however, this coverage was not in
compliance with federal regulations for certain employees. This deficiency resulted from a
management decision and failure to correct the prior-year finding.
RECOMMENDATION
The school department should ensure the health insurance coverage provided to its employees complies with the Affordable Care Act.
MANAGEMENT’S RESPONSE – DIRECTOR OF SCHOOLS
No formal management response was submitted. An explanation to the finding is included in the Corrective Action Plan.

FINDING 2023-004: MATERIAL AUDIT ADJUSTMENTS WERE REQUIRED FOR PROPER FINANCIAL STATEMENT PRESENTATION
(Internal Control – Material Weakness Under Government Auditing Standards)
At June 30, 2023, certain general ledger account balances in the General Purpose School
Fund were not materially correct, and audit adjustments totaling $714,481 were required for the financial statements to be materially correct at year-end. Generally accepted accounting principles require Smith County to have adequate internal controls over the maintenance of its accounting records. Material audit adjustments were required because the department’s financial reporting system did not prevent, detect, or correct potential misstatements in the accounting records. It is a strong indicator of a material weakness in internal controls if the county has ineffective controls over the maintenance of its accounting records, which are used to prepare the financial statements, including the related notes to the financial statements. This deficiency is the result of a lack of management oversight. We presented audit adjustments to management that they approved and posted to properly present the financial statements in this report.
RECOMMENDATION
Smith County should have appropriate processes in place to ensure its general ledgers are materially correct.
MANAGEMENT’S RESPONSE – DIRECTOR OF SCHOOLS
No formal management response was submitted. An explanation to the finding is included in the Corrective Action Plan.

Voters had the opportunity to cast ballots in a variety of races during the March 5, 2024 Presidential Preference Primary & Smith County Republican Primary, including President, Delegates At-Large, County Commission, School Board, Tax Assessor, Road Superintendent, and several more.

Polls were open from 7:00 a.m. to 7:00 p.m., and voters had the opportunity to vote early from February 14 – 27 or by absentee ballot.

Below is a PDF of the election results for the March 5, 2024 Election.

Use the up and down arrows at the top and bottom of the PDF to scroll between pages.

8 of 8 Precincts have reported, including early and absentee votes

The presidential field is set in Tennessee for the March 5, 2024, Super Tuesday Presidential Preference Primary and County Primary Election. On Super Tuesday, 15 other states will join Tennessee in helping decide each party’s presidential nominee.

The following candidates will be on Tennessee’s March 5, 2024, ballot:

Republican Primary Ballot:

• Ryan Binkley
• Chris Christie
• Ron DeSantis
• Nikki Haley
• Asa Hutchinson
• Vivek Ramaswamy
• David Stuckenberg
• Donald J. Trump

Democratic Primary Ballot: 

• Joseph R. Biden

Republican candidate Doug Burgum withdrew from the ballot after suspending his campaign. Democratic candidate Dean Phillips did not satisfy the requirements to gain ballot access via the petition process.

“We are expecting strong voter turnout for the presidential election cycle next year,” said Secretary Hargett. “I encourage all Tennesseans who need to register to vote or update their voter registration address do so now by using our convenient online voter registration system at GoVoteTN.gov.”

Click HERE to view a list of all of the polling locations in Smith County.

For more information about early voting and other election information, visit GoVoteTN.gov or contact the Smith County Election Commission at smithcountyelection.com or call 615-735-8241.

See Sample Ballot Below:

The Tennessee Secretary of State’s office and Smith County Election Commission, want to remind all Smith County voters that they can take advantage of the convenience and flexibility of the upcoming early voting period to cast their ballot for the March 5 Presidential Preference Primary and Republican County Primary.

“Early voting is an easy way for all eligible voters to cast their ballots and let their voices be heard before Super Tuesday,” said Yvonne Gibbs, Administrator of Elections.

Early voting begins on Feb. 14 and runs through Feb 27. Smith County residents can find hours, polling locations, view sample ballots, and much more on www.smithcountyelection.com, or by downloading the Secretary of State’s free GoVoteTN app. A PDF of the sample ballot is below.

“We want all eligible Tennessee voters to cast their ballot, and early voting provides them with the flexibility and convenience to do so before Election Day,” said Secretary of State Tre Hargett. 

All voters should be proud that the Heritage Foundation ranks Tennessee number one in the nation for election integrity, and the Secretary of State’s office is Tennessee’s trusted source for all election information — including the GoVoteTN app.

For more information about early voting and other election information, visit GoVoteTN.gov or contact the Smith County Election Commission at smithcountyelection.com or call 615-735-8241.

The Financial Management Committee will meet on Thursday, February 8, 2024, at 5:00 PM at the Smith County Chamber of Commerce. The agenda for the meeting can be seen below.

Any Smith County citizen wishing to speak during the Public Comment section must sign in with the chairman no later than 15 minutes before the scheduled start time of the meeting. All comments must be related to an item on the agenda.

The meeting will be streamed live on Smith County Insider’s Facebook Page.

Three local government meetings originally slated for tonight, January 16, 2024, have been rescheduled and are now set to take place on Tuesday, January 23, 2024 due to inclement weather.

The Smith County Board of Education is scheduled to convene its regularly scheduled monthly meeting at 5 pm on January 23, 2024.

Following the Board of Education meeting, the Smith County Commission will host a special-called meeting at 6:30 pm on the same day at the Smith County Ag Center.

The Smith County Financial Management Committee will commence its session immediately following the conclusion of the 6:30 pm Commission Meeting.

All three meetings are set to be streamed live on Smith County Insider’s Facebook page.

I, David McDonald, am excited to announce my candidacy for the Smith County Board representing the South Carthage District.  I am a lifelong resident of South Carthage and served this county for almost 35 years as a dentist.  My wife, Lorrie, and I live on the family farm that was settled in 1796.  My parents, Cordell and Lois McDonald, taught in the county school system for over 50 years.  I am a graduate of Smith County High School (1974), the University of Georgia (1978), and the University of Tennessee Dental College (1982).  After graduating Dental School, I couldn’t think of a better place to serve than my hometown of Smith County.  Now that I am retired, I would like to serve my county once again as a School Board member.

I believe we are all called to be good stewards.  I also believe in accountability.  I am concerned by recent events, including the School Board’s filing of a lawsuit against the county.  I believe the taxpayer money should be going to our teachers and students, not spent on litigation. As a dentist, I was accountable to my patients and their families.  As a School Board Member, I will be accountable to the people of Smith County.  Let’s spend our taxpayer dollars on education, not lawsuits!

The school system is the largest employer in our county. As a business owner, I learned how to work with employees and manage a budget.  For years I have invested in the youth of Smith County, including as a volunteer youth coach in three sports. Now I would like to serve our youth once again by working to give the educators of Smith County the means to do the most important and difficult job there is, teaching our children to become successful adults!

I humbly ask for your support and your vote for Smith County School Board.  I have decades of experience serving the county I love.  I ask for the opportunity to once again serve my Smith County friends and family on the School Board.

You can follow Dr. McDonald’s campaign on Facebook at David McDonald for Smith County School Board.

Updated on December 8, 2023.

On Thursday, November 30, the Smith County Commission filed a brief in support of their motion to dissolve the temporary restraining order obtained without mandatory notice by the Board of Education. (SEE PDF BELOW)

Within the 29-page brief, the County states that “This lawsuit was improvidently (and apparently illegally) brought, and is a (double) waste of taxpayer funds by the Board of Education, which most certainly has unclean hands… The lawsuit is also substantively meritless.”

The brief is broken into three main sections:

1. The Plaintiff’s Complaint is substantively meritless. The County Commission engaged in lengthy public deliberation, following extensive public comment on this very subject, following input by members of the Board of Education, the Director of Schools, and even the BOE attorney, and even a presentation by the Tennessee Comptroller of the Treasury personally, as well as the Comptroller’s staff, and voted in a regular public meeting by a supermajority to adopt the 1981 Act.
2. The Board of Education lacks standing, and further has unclean hands by violating the Open Meetings Act in filing this lawsuit.
3. The Court should never have issued an ex parte restraining order, and the Board of Education intentionally violated the law by seeking it.

See the full brief below.

The first hearing for the case was held on Friday, December 1 in chancery court. At the hearing on Friday, Chancellor C.K. Smith ruled that the Financial Management Committee could resume meetings and partially lifted the temporary restraining order filed by the Board of Education.

The next time the case is set to appear in court is on December 28-29, 2023 in Lebanon.

The next meeting of the of the Financial Management Committee will be held at the Smith County Chamber of Commerce on December 14, 2023 at 5:00pm.

Following the court appearance, Smith County Jeff Mason released the following statement:

“We are pleased that Chancellor Smith allowed us to move forward with the December 14^th meeting of the Financial Management Committee created as part of the implementation of the Financial Management Act of 1981. We believe that attorneys Danny Rader and Jeremy Hassler presented a firm case that no wrongdoing was done by the Smith County Commission and that the Commission acted well within their rights to vote to implement the 1981 Act at its October 9^th meeting. This suit is a waste of taxpayer dollars and the need to defend the commission for doing the job that the people of Smith County elected them to do will create more unnecessary spending. We look forward to this being behind us soon and moving forward with the plan to bring more transparency, efficiency and effectiveness to Smith County Government.”

Smith County Insider contacted the Board of Education on Tuesday evening, December 5, for comment. They responded at 8am on Friday, December 8, at 8am. Director of Schools, Barry Smith and the Board of Education released the following statement:

Director Barry H. Smith and the Smith County Board of Education are pleased that the Court agreed with the Board of Education that an open meetings act violation likely occurred depriving the parents, taxpayers, and Board of Education employees the opportunity to know the facts and ramifications of what was being done behind closed doors.  The granting of an injunction preventing the County from moving forward with the new taxpayer funded position of finance director is the first step to allow voters and taxpayers to have input on this important decision.  This injunction would also give the commissioners the opportunity to do the right thing and present this issue to the taxpayers and voters by referendum as allowed by law instead of county government forcing it upon the citizens. 

A special-called meeting of the Smith County Commission will take place on Monday, November 27, 2023, at 7:30 pm at the Smith County Chamber of Commerce.

LIVE Coverage of the meeting will be available on Smith County Insider’s Facebook page.

See a copy of the agenda below:

On November 17, the Smith County Board of Education filed a lawsuit and temporary restraining order against the Smith County Board of Commissioners, Smith County Mayor Jeff Mason, and Smith County, TN. The lawsuit follows the recent adoption of the Financial Management Act 1981 by the County Commission on October 9, 2023.

The Smith County Director of Schools, Barry Smith, and several members of the Board of Education attended the October 9, 2023 meeting of the Smith County Commission to voice concerns about adopting the Financial Management Act 1981. Click here to view the full meeting.

According to the lawsuit, the Board of Education alleges that the county violated the Open Meetings Act by not giving proper public notice of meetings and that certain members of the county commission met and/or deliberated privately regarding the county finance structure and the adoption of the Financial Management Act of 1981.

The restraining order filed by the Board of Education against the County and Commissioners temporarily prevents the county from proceeding with the establishment of the County Department of Finance and taking further action in implementing the vote taken on 10/9/23 in relation to the Financial Management Act of 1981.

See below a copy of the full lawsuit and the restraining order:

The Smith County Financial Management Committee met on November 2nd, 2023. Over 20 members of the community including board of education members attended the meeting. 

The Financial Management Committee includes the following: Jeff Mason, Barry Smith, Mickey Barrett, Greta Kirby, Erika Ebel, Cordell Smith, and Justin Mauldin. The first order of business at the meeting was assigning positions within the committee.

The meeting began with public comments.

The committee elected Justin Mauldin as chairman of the board. Cordell Smith was elected as vice-chairman. Staci Bush was appointed as interim secretary until the financial director can take over.

The committee discussed the requirements and review process to decide on a financial director. It was decided at the meeting to table the above so the committee can research further.

The next meeting will take place on November 16th at 5:00pm in the small meeting room of the Smith County Ag Center.

Thursday, January 12, 2023, U.S. Representative John Rose (TN-06) was appointed to serve on the House Financial Services Committee, on which he has served during his previous two terms in Congress. The prestigious Financial Services Committee is one of the four top-tier or “A” committees in the House, and has jurisdiction over banking, insurance, financial markets, securities, housing, international trade and finance, and monetary policy.

Rep. John Rose (TN-06) released the following statement:

“It is an honor to be selected by my fellow Republicans in the House Republican Conference to continue serving on the House Financial Services Committee for a third term,” said Rep. Rose. “Republicans have our work cut out for us as we strive to hold rogue Biden Administration officials and agencies accountable and roll back costly, intrusive, and burdensome regulations decimating small-town banks utilized by everyday Tennesseans. Make no mistake, Biden Administration officials like Securities and Exchange Commission (SEC) Chair Gary Gensler and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra will appear more frequently before the committee than under previous leadership to testify on their regulatory actions. We will hold them accountable and ensure they are not harming consumer credit and capital markets.”

Chairman Patrick McHenry (NC-10) released the following statement:

“I’m proud to welcome all of our new and returning members to the House Financial Services Committee under Republican leadership,” said Chairman McHenry. “From oversight of the Biden Administration, to enhancing capital formation opportunities, to developing clear rules of the road for digital assets—we have a lot of work to do. I have no doubt these Members from across the conference and country will provide invaluable insight to accomplish these goals. The talent and real-world expertise of this group is an embarrassment of riches and I look forward to working with them to deliver on House Republicans’ Commitment to America.”

Background: The House Republican Steering Committee has the responsibility of recommending Members of Congress to serve on certain committees before the full Republican Conference and the full House of Representatives vote on the assignments at a later date. A list of Members on the steering committee can be found here.

On Thursday, January 17, 2023 U.S. Representative John Rose (TN-06), a lifelong farmer and former Tennessee Agriculture Commissioner, was appointed to serve on the House Agriculture Committee.

Rep. John Rose (TN-06) released the following statement:

“The opportunity to serve on the House Agriculture Committee is a privilege and the fulfillment of a dream that extends back to my time in the blue corduroy jacket as a student member of the Future Farmers of America,” said Rep. Rose. “As Congress looks to pass the farm bill and conduct oversight of President Biden’s Department of Agriculture, I am hopeful that my experience as an 8th-generation family farm owner will be beneficial to our nation’s farmers, ranchers, foresters, and producers.

Chairman Glenn “GT” Thompson (PA-15) released the following statement:

“I welcome this diverse group of legislators to the House Committee on Agriculture for the 118th Congress. It’s imperative we hit the ground running through a rigorous hearing schedule, listening sessions, and aggressive oversight. I look forward to working closely with my colleagues as we put forward commonsense solutions that provide certainty for rural America.”

Background:

The House Republican Steering Committee has the responsibility of recommending Members of Congress to serve on certain committees before the full Republican Conference and the full House of Representatives vote on the assignments at a later date. A list of Members on the steering committee can be found here. Representative Rose received a waiver from the steering committee in order to simultaneously serve on the House Committee on Agriculture and the House Committee on Financial Services.

U.S. Representative John Rose is currently serving his third term representing Tennessee’s Sixth Congressional District and resides in Cookeville with his wife, Chelsea, and their two sons, Guy and Sam. The Sixth District includes Cannon, Clay, Cumberland, DeKalb, Fentress, Jackson, Macon, Overton, Pickett, Putnam, Smith, Sumner, Trousdale, Van Buren, and White counties as well as portions of Davidson, Scott, Warren, and Wilson counties. Representative Rose is an eighth-generation farmer, small business owner, and attorney.

U.S. Representative John Rose (TN-06) recently released the following statement regarding the election of Kevin McCarthy (R-CA) as Speaker of the U.S. House of Representatives for the 118^th Congress:

“From the first ballot to the 15th ballot, I was proud to vote for the proven conservative, endorsed by President Trump, Kevin McCarthy, for Speaker. I am confident Speaker McCarthy will do an exceptional job leading the new Republican Majority in the House as we work to: hold the Biden Administration’s out-of-touch agenda accountable, reign in Washington’s reckless deficit spending that has caused runaway inflation, restore America’s energy independence, bring back open debate to restore the American People’s voice in the People’s House, investigate the Biden family’s shady business dealings, and tirelessly work to secure our southern border. I assure the people of Tennessee that I will keep a watchful eye on Speaker McCarthy, and if he veers from the conservative principles the American people demand and expect, he will be held accountable.”

After being sworn into office on January 7th to serve as the U.S. Representative for Tennessee’s Sixth Congressional District in the 118^th Congress John Rose said:

“It is an extreme honor to take the oath of office to continue serving the people of Tennessee’s Sixth Congressional District in the U.S. House of Representatives. As Republicans are sworn into the majority in the U.S. House, I am optimistic about the opportunity to enact policies that encourage job growth, fight inflation, defend our borders, protect law enforcement, preserve our constitution, and hold Washington accountable to the American people,” said Rep. Rose. “I am also thrilled to welcome my new constituents from East Nashville, Van Buren County, and portions of Scott and Warren Counties. I thank you for again trusting me to represent your voice in Congress.”

U.S. Representative John Rose is currently serving his third term representing Tennessee’s Sixth Congressional District and resides in Cookeville with his wife, Chelsea, and their two sons, Guy and Sam. The Sixth District includes Cannon, Clay, Cumberland, DeKalb, Fentress, Jackson, Macon, Overton, Pickett, Putnam, Smith, Sumner, Trousdale, Van Buren, and White counties as well as portions of Davidson, Scott, Warren, and Wilson counties. Representative Rose is an eighth-generation farmer, small business owner, and attorney.

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