11278-2025-c-gallatinidb-rpt-cpa517-3-25-26-rev1.txt
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INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF GALLATIN, TENNESSEE
FINANCIAL STATEMENTS
JUNE 30, 2025
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INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF GALLATIN, TENNESSEE
TABLE OF CONTENTS PAGE
Introductory Section
Board of Directors 1
Financial Section
Independent Auditor's Report 1-3
Financial Statement
Statement of Financial Position 4
Statement of Activities 5
Statement of Cash Flows 6
Notes to Financial Statements 7-9
Stlpplemenfal Information
Schedule of Cash and Cash Equivalents 10
Compliance and Intemal Control
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
In Accordance with Government Auditing Standards 12-13
Schedule of Disposition of Prior Year Comments 14
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INTRODUCTORY SECTION
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INDUSTRIAL DEVELOPMENT BOARD OF THE CITY
OF GALLATIN, TENNESSEE
Board of Directors
June 30, 2025
Name Title
Neil Burgess Chair
Len Assante Treasurer
Joanne Walker Secretary
Stan Carver Board Member
Jessie Maness Board Member
Allen Ramsey Board Member
Phil Carver Board Member
Derrick Jackson Board Member
Don Cunningham Board Member
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FINANCIAL SECTION
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&JOHN R. POOLE, CPA
CERTIF'IEO PUBLIC ACCOUNTANT
1 34 NORTHLAKE DRIVE (615) 822-4177
HENDERSONVILLE, TN 37075
Independent Auditor's Report
To the Board of Directors of
Industrial Development Board ofthe City of Gallatin, Tennessee
Gallatin, Tennessee
Report on the Audit of the Financial Statements
Opinion
I have audited the accompanying financial statements of the Industrial Development Board of the
City of Gallatin, Tennessee which comprise the statement of financial position as of June 30,2025,
and the related statement of activities and cash flows for the year then ended and the related notes
to the financial statements.
In my opinion, the financial statements present fairly, in all material respects, the financial position
of Industrial Development Board of the City of Gallatin, Tennessee as of June 30, 2025, and the
changes in its net assets and its cash flows for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinion
I conducted my audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in the Government Auditing
Standards, issued by the Comptroller General of the United States. My responsibilities under those
standards are further described in the Auditor s Responsibilities for the Audit of the Financial
tatements section of my report. I am required to be independent of Industrial Development Board
ofthe C1ty of Gallatin Tennessee and to meet my other ethical responsibilities, in accmdance with_
the relevant ethical requirements relating to my audit. I believe that the audit evidence I have
obtained is sufficient and appropriate to provide a basis for my audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America and 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.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate that raise·substantial doubt about the [ndustrial
Development Board of the City of Gallatin, Tennessee's ability to continue as a going concern
within one year after the date that the financial statements are available to be issued.
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Auditor's Responsibilities for the Audit of the Financial Statements
My objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes my opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards and Goverrunent Auditing Standards will always detect a matetial
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Misstatements are considered
material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgement made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, I:
•!• Exercise professional judgment and maintain professional skepticism throughout the audit.
•!• Identify and assess the risks of material misstatement of the financial statements whether
due to fraud or errm, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the an1ounts and
disclosures in the financial statements.
•!• Obtain an understanding of internal control relevant to the audit 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 Industrial Development Board of the City of Gallatin,
Tem1essee's internal control. Accordingly no such opinion is expressed.
•!• Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
•!• Conclude whether, i11 my judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about the Industrial Development Board of the City
of Gallatin, Tennessee's ability to continue as a going concern for a reasonable period of
time.
I am required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing ofthe audit, significant audit findings and certain internal control-
related matters that I identified during the audit.
Supplementary Information
My audit was conducted for the purpose of forming opinions on the fmancial statements as a
whole. The supplementary information section, as listed in the table of contents, is presented for
purposes of additional analysis and is not a required part of the financial statements. Such
information is the responsibility of management and was derived from and relates directly to the
underlying accounting and oth r records used to prepare the financial statements. The information
has been subjected to the auditing procedures applied in the audit of the financial statements and
ce1tain additional procedures including comparing and reconciling such information directly to
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the underlying accom1ting 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 my opinion, the supplementary
information is fairly stated in all material respects in relation to the basic financial statements as a
whole.
Other Information -Introductory Section
Management is responsible for the other infmmation included in the annual report. The other
information section, as listed in the table of contents such a the Introductory section does not
include the basic financial statements and my auditor's report thereon. My opinion on the basic
financial statements does not cover the other information, and I do not express an opinion or any
other assurance thereon.
In cormection with my audit of the basic financial statements my responsibility is to read the other
information and consider whether a material inconsistency exists between the other information
and basic financial statements, or the other information otherwise appears to be materially
misstated. If, based on the work performed, I conclude that an uncorrected material misstatement
of the other information exists, I am required to(describe it in my report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, I have also issued my report dat d July 31,
2025, on my consideration of Industrial Development Board of the City of Gallatin, Tennessee's
internal control over financial repmting and on my tests of its compliance with ce1tain pro vi ions
of laws regulations contracts and grant agreements and other matters. The purpose of that repol1
is solely to describe the scope of my testing of internal ontrol o er fmancial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
Industrial Development Board of the City of Gallatin Tennessee s 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 Industrial Development Board of the City
of Gallatin, Tennessee's internal control over financial reporting and compliance.
July 31, 2025
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FINANCIAL STATEMENTS
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INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF GALLATIN, TENNESSEE
Statement of Financial Position
June 30, 2025
Current assets:
Cash $ 148,027
Total current assets 148,027
Total assets $ 148,027
Liabilities and Net Assets
Current liabilities:
Accounts payable $ 0
Total current liabilities 0
Net assets 148,027
Total net assets 148,027
Total liabilities and net assets $ 148,027
The accompanying notes are an intergal part of these statements. 4
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INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF GALLATIN, TENNESSEE
Statement of Activities
For the year ended June 30, 2025
Revenues:
PILOT $ 2,210,996
Maintenance fees 19,372
Legal fees 9,980
Other income 1,873
Total public support 2,242,221
Expenses:
PILOT fees distributed to Sumner County 2,291,692
Payment to Sumner County Schools 640,457
Professional services 12,000
Repair and maintenance 6,364
Office supplies 1,766
Insurance 1,204
Consulting 45,000
Miscellaneous 53
Total expenses 2,998,536
Increase (decrease) in net assets (756,315)
Beginning of year net assets 904,342
End of year net assets $ 148,027
The accompanying notes are an intergal part of these statements. 5
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INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF GALLATIN, TENNESSEE
Statement of Cash Flows
For the year ended June 30, 2025
Cash flows from operating activities:
Support and revenue received $ 2,242,221
Cash paid for:
Program and support services (2,998,536)
Net cash provided by operating activities (756,315)
Cash flows used by investing activities:
Redemption of Certificate of Deposit 145,069
Net cash used by investing activities 145,069
Net increase in cash (611,246)
Cash and cash equivalents at beginning of year 759,273
Cash and cash equivalents at end of year $ 148,027
Reconciliation of Increase in Net Assets to Net Cash Provided by
Operating Activities
Increase (decrease) in net assets $ (756,315)
Adjustments to reconcile decrease in net assets to
net cash provided by operating activities:
Changes in assets (increase) decrease:
Changes in liabilities increase (decrease)
Net cash provided by operating activities $ (756,315)
The accompanying notes are an intergal part of these statements. 6
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NOTES TO THE FINANCIAL
STATEMENTS
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INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF GALLATIN, TENNESSEE
Notes to the Financial Statements
June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature ofActivities
The Industrial Development Board of the City of Gallatin, Tennessee is responsible for
administration of the PILOT program whjch involves payments in lieu of taxes. Payments are
primarily payments to Stunner County Tennessee in which the City of Gallatin is located. Other
expenses are related to the operation of the Industrial Park.
Basis of Accounting
The accompanying financial statements ha e been prepared on the accrual basis of accounting in
accordance with generally accepted accOLmting principles and recommendations of the American
Institute of Certified Public Accountants in its industry audit and accounting gujde, Not-for-Profit
Organizations.
Basis of Presentation
Financial statement presentation follows the recommendations of the Financial Accounting
Standards Board in its Statement of Financial Standards. The Industrial Development Board of the
City of Gallatin Tennessee is required to report information regarding its financial position and
activities according to the two classes with or without donor restrictions) of net assets.
Contributions
Contributions received are recorded as with or without donor restricted support depending on the
existence or nature of any donor restrictions.
Promises to Give
Contributions are recognized when the donor makes a promise to give to the I:ndustrial
Development Board of the City of Gallatin Tennessee that is, in substance, unconditional.
Contributions that are restricted by the donor are reported as increases in without donor restricted
n t assets if the restrictions expire in the fiscal year in which the contributions are recognized. All
other donor-restricted contributions are reported as increases in donor restricted net assets
depending on the nature of the restrictions. When a restriction expires, donor restricted net assets
are reclassified to without donor restricted net assets.
Donated Servjces
Industrial Development Board of the City of Gallatin Tennessee receives many hours of donated
time from various citizens. It is impractical to estimate a value for these services as such no such
value has been placed on these services in the Industrial Development Board of the City of
Gallatin, Tennessee's financial statements.
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INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF GALLATIN, TENNESSEE
Notes to the Financial Statements
June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
Promises to Give/Pledges
Unconditional promises to give that are expected to be collected within one year are recorded at
their net realizable value. Unconditional promises to give that are expected to be coUected in
future years are recorded at the present value of estimated future cash flows. Conditional promises
to give are not included as support until such time as the conditions are substantially met.
Income Taxes
The Organization is a not-for-profit organization that is exempt from income taxes under the
provisions of the Internal Revenue Code.
Cash and Cash Equivalents
For purposes of the statement of casb flows the Industrial Development Board of the City of
Gallatin Tennessee considers all highly liquid investments with an initial maturity of three months
or less to be cash equivalents.
Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could differ from those estimates.
2. AVAILABILITY AND LIQUIDITY
The following represents Industrial Development Board of the City of Gallatin, Tennessee's
financial assets at June 30, 2025:
Financial assets at year end:
Cash $ 148.027
Less amounts not available to be used within one year: 0
Financial assets available to meet general expenditures
over the next twelve months: $148,0?7
Industrial Development Board of the City of Gallatin, Tennessee's goal is to maintain financial
assets to meet its operating expenses.
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INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF GALLATIN, TENNESSEE
Notes to the Financial Statements
June 30,2025
3. SUBSEQUENT EVENTS
Thru July 31, 2025 (the date of this report), there are no material subsequent events that should be
reported.
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SUPPLEMENTAL
INFORMATION
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INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF GALLATIN, TENNESSEE
Schedule of Cash and Cash Equivalents
For the year ended June 30, 2025
Checking accounts 112,087
Reserve checking accounts 35,940
Total Cash 148,027
The accompanying notes are an intergal part of these statements. 10
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COMPLIANCE AND
INTERNAL CONTROL
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.JOHN R. POOLE, CPA
CERTIF"IED PUBLIC ACCOUNTANT
1 34 NORTHLAKE DRIVE (6 1 5) 822-41 77
HENDERSONVILLE, TN 37075
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors of
Industrial Development Board ofthe City of Gallatin, Tennessee
Gallatin, Tennessee
I have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of
Industrial Development Board ofthe City of Gallatin, Tennessee which comprise the statement of
financial position as of June 30, 2025,and the related statement of activities and cash flows for the
year then ended, and the related notes to the financial statements, which collectively comprise
Industrial Development Board of the City of Gallatin Te1messee s financial statements and have
issued a report thereon dated July 31, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing my audit of the financial statements, I considered the Industrial
Development Board ofthe City of Gallatin, Tennessee's internal control over financial reporting
(intemal contro.l) as a basis for designing the audit procedures that are appropriate in the
circumstances for the purpose of expressing an opinion on the financial statements but not for the
purpose of expressing an opinion on the effectiveness of the Industrial Development Board of the
City of Gallatin, Tennessee's internal control. Accordingly, I do not express an opinion on the
effectiveness ofthe Organization's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent
or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
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My consideration of the internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during the audit I did not
identify any deficiencies in internal control that I consider to be material weaknesses or significant
deficiencies. However, material weaknesses or significant deficiencies may exist that have not
been identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Industrial Development Board of the
City of Gallatin, Tennessee's financial statements are free of material misstatement, I performed
tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements,
noncompliance with which could have a direct and material effect on the determination of the
financial statements. However, providing an opinion on compliance with those provisions was not
an objective of the audit and, accordingly, I do not express such an opinion. The results of the
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of the 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.
July 31, 2025
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INDUSTRIAL DEVELOPMENT BOARD
OF THE CITY OF GALLATIN, TENNESSEE
Schedule of Disposition of Prior Year Comments
June 30, 2025
There were no prior year comments.
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