[[page 1]] INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF GALLATIN, TENNESSEE FINANCIAL STATEMENTS JUNE 30, 2025 [[page 2]] 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 [[page 3]] INTRODUCTORY SECTION [[page 4]] 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 [[page 5]] FINANCIAL SECTION [[page 6]] &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. [[page 7]] 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 2 [[page 8]] 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 3 [[page 9]] FINANCIAL STATEMENTS [[page 10]] 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 [[page 11]] 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 [[page 12]] 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 [[page 13]] NOTES TO THE FINANCIAL STATEMENTS [[page 14]] 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. 7 [[page 15]] 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. 8 [[page 16]] 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. 9 [[page 17]] SUPPLEMENTAL INFORMATION [[page 18]] 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 [[page 19]] COMPLIANCE AND INTERNAL CONTROL [[page 20]] .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. 12 [[page 21]] 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 13 [[page 22]] 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. 14