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HomeMy WebLinkAbout2006-435-Minutes for Meeting October 13,2005 Recorded 4/25/2006DESCHUTES COUNTY CLERKDS Yd 006.435 NANCY COMMISSIONERS' JOURNAL 04/25/2006 02;25;33 PM II (VIII IIIIIIIIIIIIIIIIIII III 2 d-435 DESCHUTES COUNTY CLERK CERTIFICATE PAGE This page must be included if document is re-recorded. Do Not remove from original document. Deschutes County - Audit Committee MINUTES - 10-13-05 Re: Deschutes County Audit Committee Meeting Minutes - Thursday, October 13, 2005 Committee Members Present: Commissioner Dennis Luke; Scot Langton, Assessor; Tom Anderson, Community Development; Jade Mayer and Jim Keller, Public Sector. Others present were: Marty Wynne and Jeanine Faria, Finance; Mike Maier, County Administrator; and David Givans, County Internal Auditor. Present for a portion of the meeting were Commissioner Tom DeWolf; Candace Fronk, Wes Price and Richard Bailey of Harrigan Price Fronk & Co LLP; John Finamore and David Dean, Audit Peer Reviewers. Jade Mayer called the meeting to order at 12:20 p.m. Approval of Minutes from the meeting on June 9, 2005 Jim Keller: Moved Approval of the Minutes from June 9, 2005 Dennis Luke: Second. VOTE: Unanimous Approval. Introductions David Givans introduced his peer reviewers; John Finamore from City and County, of Denver, Colorado and David Dean from City of Gresham, here in Oregon. Presentation of County's Comprehensive Annual Financial Report - Fiscal Year Ended June 30, 2005 Candace Fronk: (Passed out copies of the Comprehensive Annual Financial Report (CAFR) to the group.) (See attached CAFR marked as Exhibit A.) We are very pleased to be presenting this report at this time of year. I think to have a comprehensive annual finance report and have it delivered this soon after year end is quite a feat, that Jeanine gets most of the credit for. Our responsibility as the auditor is basically just to give our opinion as to the fair presentation of the basic financial statements. Which is everything, basically, up though the footnotes. Minutes of Audit Committee Meeting Thursday, October 13, 2005 Page 1 of 9 The management's discussion, analysis and the transmittal letters are things that the finance department takes care of as well as the statistical section in the back. Behind the notes are an extra 100 to 150 pages of budget and actual and some combining statements. Those we also give an opinion on basically, in relation to materialality as it applies to those basic financial statements. This Committee, of course, has certain responsibilities besides just selecting and approving the external auditor. The estimates that are in the financial statements, if there is something that is a material assumption, those could come before this group. You don't have a lot of estimates in your financial statements. You do have things like Solid Waste closure costs and also, because of the self insurance, perhaps some of the estimates on future liabilities for self insurance. Neither of those things affect your budget basis statements. Those are things that we have in just that government wide statement of activities and statement of net assets. The County had a really good year, financially speaking. You made a profit. Just looking at the statement of net assets on page 19 the cash and investments were up significantly from the prior year, actually about 10 million dollars. A lot of that profit you have set aside for specific purposes. It is either different reserves for Solid Waste, Community Development, PERS, or something. On this statement it only comes down to what is restricted by outsiders, or unrestricted. That bottom section of net assets is a good one to look at. This is something that you don't ever see in your budget in actual kind of information that you get on a regular basis. We have capital assets, net of related debt, that you have about 40 million dollars in. That is historical costs which is appreciated amounts, then subtracting out any bonds or liabilities that were used to acquire that debt. Rich Bailey: The negative number in the business type activities column at the bottom, the negative 2 million dollars, that is mostly due to the post closure and closure costs for the landfill. We are required to get that onto this statement, so that is what is causing this to go upside down. Ms. Fronk: If the landfill already had to approve the 9 million dollars worth of closure and post closure costs for how much capacity they have already used, that would put that activity upside down for right now. That is why you continue to save for that ultimate closure. It has not gone up a lot and it is based on a percentage. If the landfill is half full, you are actually supposed to accrue half of the cost for closure and thirty year post closure. They seem to be getting more and more efficient with their use of space as well. The capacity used number does not seem to grow as fast as you might think. They do have all of that engineered and we have talked with Timm Schimke about the numbers and the studies. I think you are really on track to have that come out pretty well. So don't worry about that being upside down. Jeanine Faria: A couple of years ago there was actually a decrease in the percentage of the amount that had been filled. We went from 44% filled to down to 42% filled with one year more of stuff in it. Ms. Fronk: When they increase the footprint then we just say ok double the size of the footprint then you say you have twice as much capacity. You would still just look at the total amount. Your closure costs would go up but you percentage of use goes down. It is always going to be out there in the future and it is always and estimate that gets adjusted forward. Minutes of Audit Committee Meeting Thursday, October 13, 2005 Page 2 of 9 Jim Keller: If there is a way to present to the public in maybe an outreach or PR piece, that they are saving money by recycling and some kind of statement to that effect. That there is really a benefit would be an added incentive. Commissioner Luke: We have a pretty high percentage of people who recycle already and it is pretty well ingrained into the community. If you try to take it away, I think you would be in a lot of trouble. We do the free days at the landfill for appliances, tires, yard debris, that kind of stuff. When we did a tour of other landfills they are going why would you do that? It is because we do not want that stuff dumped out on BLM land. If you take that away, I think there would be trouble. We do a lot of education. We just signed a $150,000.00 contract for education. Ms. Fronk: I think the Solid Waste Department could tell you how much, even in just the closure and post closure and operation cost, a ton or yard of garbage costs for every ton that is recycled instead of being put into the ground. Commissioner DeWolf. All that is true. We have, over the past several years, taken great strides in television, newspaper, and radio. Every opportunity that we have to communicate our efforts in recycling, we have done so. The haulers themselves, for a number of years, had a recycling arm and with their bills they periodically sent out more reminders of the recycling. What we get credit for in recycling actually exceeds what the State requirement for us is. Another thing we are doing is asking haulers to do more at curbside to eventually include yard debris. We did a test in Sundance and when we ended the test they were upset. So we are getting their attention. Commissioner Luke: In the rural areas we started recycling. The rates went up pretty good. Some complaints but haulers are picking up a lot of recycling material. Marty Wynne: On page 247 there is some correlating data for Solid Waste. Middle of the page shows the average annual per capita and it shows the recyclables. Commissioner Luke: Solid waste is big business. Some counties don't put that money into reserve, when it comes down to post closure they go out for bond. I would point out that there is nothing that keeps the Commissioners from spending those reserves. We have used some of those funds to load to the Fairgrounds, paid back with interest. Mike Maier: Some organizations use revenues from Solid Waste for general operational purposes, we do not. Ms. Fronk: On page 20 the statement of net assets and the statement of activities are the two primary statements that bring in that full accrual with depreciation, interest on long term debt, and some of the things that you don't do for budget basis, like landfill liability. One of the things that made putting this report together faster this year, I think for Jeanine, was to bring that conversion from the budget basis to this full accrual basis more into the accounting system. Those adjustments went through HTE software that Jeanine was able to set up so that it happened concurrently with the regular accounting transactions. I think it made for an easier conversion for her and made our job easier because there was abetter trail. It made for a system that was less error prone because it did not rely on external spreadsheets. That is something that is new this year that I think is a benefit to everybody. Minutes of Audit Committee Meeting Thursday, October 13, 2005 Page 3 of 9 Mr. Bailey: On page 21 is what we call the major funds and those are generally a fairly quantitative test. Everything else is pretty much bunched up into that other governmental funds column except for the business activities. Not a lot jumps out at you on that page. Ms. Fronk: On page 25 is the Benefits Trust Fund as well as the other internal service funds that run Personnel, Finance, and some of those. So we break out Solid Waste, Fair, insurance and internal service. They are what are considered the business type activities, proprietary funds. Those are more of a full accrual for these basic statements. Mr. Bailey: On page 22 is reconciliation between that balance sheet and the statement of new activity. You can see all the capital assets and the debt, the depreciation and how those have all gone into the mix to take you from one statement to the other. Ms. Fronk: After meeting with this group we picked a few departments to go out and visit. We went to both Clerk and Community Development Department (CDD.) These departments we went and did a little more thorough look at their internal controls and their cash receipting. Rick went out to CDD and everything went very well. Mr. Bailey: It went really well. We just had some minor suggestions for the Clerks Office. Generally, both departments used their computers and software as an additional control, in that there always seems to be a required log in, log off, something that can be reconciled at the end of the day. There is a reconciliation that happens between the Finance Department and the depositing department. I know that Cheryl gets together with various departments to iron out any inconsistencies. It is a very good segregation and there are lots of ways to keep track and make sure that everything has been captured. In the Clerks Office and CDD the one thing is the cash drawers. They are open all day at CDD and in the Clerks Office Ms. Fronk: They are not necessarily physically secured during the day. Mr. Bailey: Even though they are unsecured during the day, they are not accessible to the public. Ms. Fronk: Another area looked at was land inventory. There is more land out there than what is on the books. We also found that last year when we added some of the bond issue costs for this government wide statement, we were supposed to amortize over the life of the bond for the debt issue costs. Some of those had been duplicated. It was nice to see that the process that you had undertaken during the year did actually identify some land owned by the County that had not been recorded. I think the Fairgrounds was one of them. Ms. Faria: We have never recorded and capitalized the Fairground property. It took quite a lot of research in finding when did we get it, how did we get it, and it had never just been capitalized. Putting land on the books has always been a requirement. Every year we get even closer and closer to where we need to be to have a set of financial statements that absolutely are reflective of everything the County owns. We worked quite a bit with the Assessor's Office this year in trying to get our arms wrapped around the land site. The Property Management area has been in a state of flux over the last couple of years but I think we are on a real good path right now. Minutes of Audit Committee Meeting Thursday, October 13, 2005 Page 4 of 9 Ms. Fronk: On page 42 is a pretty good list of all of your debt. Something's in there that are not always debt, like accrued vacation pay or some things that we amortize out over the debt. But a majority of that is actual debt. There is quite a bit of debt but you have a lot of money in the bank too. You had refinance on the CDD building this year and the bond issue for the Fairgrounds. Mr. Wynne: Moody's upgraded our bond rate last summer to AA. On page 240 and 241 shows debt margin. The first one the section on the left shows 2%. On page 241 where it shows year 2005, it shows that out net debt applicable to the limit is 352 million. We have 45 million outstanding. When Moody's issued the upgrade to our bond rating they mentioned that we have a relatively low amount of debt Ms. Fronk: Debt limit relates to the value of property in the County, which is obviously growing at a fast pace. Scot Langton: For brand new property just put on the roll, the market value is 1.5 billion. Ms. Fronk: On top of page 47 on PERS and actuarial valuation that came out. Every other year they do a full actuary valuation. The last one is Dec 31, 2003 so they will be doing another one at the end of this year. But it will be 9 months to a year before we see it. On unfunded actuarial liability the bracket means that you were over funded. And yet the end of 01 and 03 were very bad stock market years. So, combining that with those changes in life expectancies has actually put that back into an unfunded position. The only reason that you were so over funded before is because you had bought down that rate with those bonds and actually paid in real dollars. The next set of Supreme Court decisions is probably going to be a little bit more in the employers favor, but who knows. This is just the money sitting at PERS, not any money sitting at the County for future decisions. Having that cushion that you do is going to protect you against whatever might come along. Ms. Fronk: There were only two funds that had expenditures beyond their appropriations and they were very small. They were down to like $4500 dollars. None of the other independent service districts were over this year, so that was good for them (See attached Service District Reports marked as Exhibits B - H.) From compliance standpoint, all of the other budgetary stuff was good, the investment side, the collateral, the purchasing procedures, and the federal funds. We spent a little more time this year out at the Health Dept. They were still messing around with the federal money and which grant it came from. Any program that is over 300,000.00, we have to do some major testing on it. Everything looked good. We prepared a letter made out to the audit committee (See attached Letter to Audit Committee marked as Exhibit I.) The prior year recommendations really were well implemented, I thought. The first thing was the land; the second was converting some things so that the change to the government wide statements went well. The other area that we went in was the tax collection system and the ways that some of those numbers interact between the program that the assessor uses, the tax collector uses, then reconcile to the accounting software, the HTE software. Mr. Bailey: Software worked well for the Assessor side but the Tax Department spends a lot of time doing reconciliations as they go forward. From speaking with Dave Lilley, this software Minutes of Audit Committee Meeting Thursday, October 13, 2005 Page 5 of 9 does not keep all of its information in a nice little neat time line like an accountant would look at it. There may be an adjustment and it may go back to a prior period that Dave Lilley has already closed out and reconciled. Then he has to go back and track that through and make sure that everything is right, and then go forward. Ms. Fronk: Dave Lilley seems to reconcile that but I think it is becoming a full time job. There were times that the ending balance on one report would not be exactly the beginning balance on the next report. By minuscule amounts, but why should that not be to the penny. Mr. Wynne: One of the complicated parts is that it is not entirely under our control. This affects three other counties. So, there are three other Board of County Commissioner's that need to be aware of this. Perhaps we could use this audit, management letter and a communication from our Board or Audit Committee to help leverage. Commissioner DeWolf. If going to other commissioner's letter should come from us, if going to their finance director as well, maybe from us and you and Scott. We could send a letter to the corresponding elected officials in those other counties. Ms. Fronk: Don't know why but the other counties don't seem to complain. Mr. Maier: We seem to be a little more demanding than the other counties. The other ones don't have as much drive to get things changed as we do. Ms. Fronk: They are fairly responsive to individual issues. The software is designed a lot more for the Assessor's side and I do not think that Scot is complaining on what it does for him. Mr. Langton: A little history about the system. It started in Polk County and it was an assessment system that ok, now we have to do tax. For whatever reason, they did not do a good job designing the interface between the two and the way you guys receive and distribute money. Now that we are on board, I am not sure why these other counties don't, as it is an exact science. Mr. Wynne: I think as a perspective that we have saved millions of dollars going this route. We have had some problems, but by in large, it has been transparent to the public and by in large, it has worked well. They need to clean this up. I just want to put it in perspective that we have saved a great deal of money and there are some really good aspects of it, for the Assessor's side especially. I think it is still a good decision. People are smart enough to do these things and do them correctly, but they have been in this growth mode. Ms. Fronk: You are coping but there is a human element that does make it more error prone. It is relying on the staff to sit there and do it until they can make it work and then make the changes. I do not know of any taxing district that has gotten their right amount of money. They rely solely on what this department gives them. Mr. Wynne: Dave Lilley is a CPA and he does a lot of double checking. Whether it is a communication from the Board of Commissioners or the Audit Committee, I am not sure what is best. Minutes of Audit Committee Meeting Thursday, October 13, 2005 Page 6 of 9 Commissioner Luke: You could put it in the letter that our External Auditors plus our Audit Committee has a concern of this small glitch in the software system and we would like to meet and talk about getting this taken care of. Ms. Fronk: I think it is appropriate for this Committee to do some follow-up periodically and just see how it is coming. That was the last thing on my list. Commissioner Luke: Anything at 9-1-1 concerning your review? Ms. Fronk: No, 9-1-1 went fine. They had their new levy so they had more money to work with and the budget increased a little bit. Because of all the book keeping being done through Finance, we don't need to get to involved. We did go out and do Sunriver Service District and Black Butte Ranch Service District in the field. Black Butte is the only one who does get a comment for lack of segregation of accounting duties. They just have the one bookkeeper and the Chief. They do have an advisory board, but certainly not all the checks and balances that you have here. But, they did do fairly appropriate for their size. We do have them there to make sure that somebody else is looking at the bank statements, bank reconciliations, and some of those kind of things. Sunriver Service District, as long as they are contracting with Sunriver Owners Association, have a good system behind them. We did give a presentation to Sunriver Managing Board and will be going out in November to Black Butte as well. Jade Mayer: Anything significant on past audits? Ms. Fronk: No, other than the fact that we overbooked loan costs for new land. Ms. Faria: Minor deal on current year of the estimated taxes for the modified accrual. Ms. Fronk: Tax receipts collected in 60 days are part of your revenue for last year on the budget basis and we used and estimate based on historical collection. That was County wide with all the Districts. Compared to the total taxes, it was really not material. Commissioner Luke: Mr. Chairman, I would move that the Audit Committee accept the external audit as presented. Jim Keller: Second. Mr. Mayer: Any discussion? Mr. Keller: It is obvious of the amount of coordination that is going on. It is great and I am really pleased to see that. Mr. Mayer: One more thing, I am assuming that there are no disagreements with management? Ms. Fronk: No. VOTE: Unanimous Approval. Minutes of Audit Committee Meeting Thursday, October 13, 2005 Page 7 of 9 Commissioner Luke: I have one more. Commissioner Luke: Mr. Board Chairman, of the Commission, I would move that the County Commissioners accept this audit as presented by the external auditors. Commissioner DeWol£ Second. VOTE: Luke: Yes. DeWol£ Chair votes yes. Presentation of preliminary results of External peer review of Internal Audit ProLmam John Finamore: Gave a PowerPoint presentation and overview of the auditing standards used in the peer review (See attached Presentation marked as Exhibit J.) He said some things may not be applicable to David's shop. Mr. Dean and I appreciate the opportunity to come to Deschutes County and do a peer review. We learn as much coming out of the reviews as those who receive the review. We want to single out that David as he is the first single auditor to successfully pass the NALGA peer review (See attached External Quality Control Review Letters marked as Exhibit K.) Mr. Anderson: Did we request the audit review? David Dean: Yes, David (Givans) asked for this. Tom Anderson: Is it a pass/fail review? Mr. Finamore: There are three levels: 1. Full compliance - which David has done 2. Successful - met most 3. Missed standards Some single audit shops just do not follow standards. Ms. Fronk: It helps the external auditors. Mr. Mayer: How often are reviews done? Mr. Finamore: Every three years. Status of Current Work - Mr. Givans went over status of current work. 1. County Fair cash handling/County Fair/Expo planning - Still working on Fair. 2. Reports issued recently - HBT, Ext/4-H, CCF - will discuss reports at next meeting. Minutes of Audit Committee Meeting Thursday, October 13, 2005 Page 8 of 9 Mr. Maier: We have an RFP out for a new Health Benefit Trust Administrator and Administrators West is one of three who turned in an RFP. Tour of Clerk's Office After the meeting is adjourned the Committee Members will take a tour of the Clerk's Office. Being no further issues brought before the Committee, Jade Mayer adjourned the meeting a 2:00 p.m. Respectfully submitted, Connie Thomas Senior Secretary Attachments Exhibit A: CAFR (289 pages) Exhibit B: Letter to Audit Committee (2 pages) Exhibit C: 9-1-1 County Service District Report (33 pages) Exhibit D: Extension/4-H County Service District Report (31 pages) Exhibit E: Black Butte Ranch County Service District Report (31 pages) Exhibit F: Sunriver Service District Report (34 pages) Exhibit G: Redmond Library County Service District (28 pages) Exhibit H: Sunriver Library County Service District (28 pages) Exhibit I: Bend Library County Service District (30 pages) Exhibit J: Peer Review PowerPoint Presentation (9 pages) Exhibit K: External Quality Control Review Letters (6 pages) DATED thisB day of Dec. 2005 for the Deschutes County Board of Commissioners. Tom DeWolf, Chair ATTEST: Michael . Daly, Commissioner Dennis R. Luke, Commissioner Recording Secretary Minutes of Audit Committee Meeting Page 9 of 9 Thursday, October 13, 2005 Audit Committee Minutes October 13, 2005 Referenced Exhibits are on file with the Clerks Office. DESCHUTES COUNTY, OREGON 1300 NW Wall Street Bend, OR 97701 COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2005 Prepared by: Deschutes County Finance Department Marty Wynne Finance Director Jeanine Faria, CPA Accounting Manager Exhibit of ' DESCHUTES COUNTY, OREGON TABLE OF CONTENTS YEAR ENDED JUNE 30, 2005 Page INTRODUCTORY SECTION Letter of Transmittal iii-viii County Officials ........................................................................................................................................ix Organizational Chart .................................................................................................................................x Certification of Achievement ..............:......................................................................................................xi FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT ......................................................................................................3-4 MANAGEMENT'S DISCUSSION AND ANALYSIS 5-15 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements Statement of Net Assets Statement of Activities 19 Fund Financial Statements: Governmental Funds 20 Governmental Funds - Balance Sheet . 21 . Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net A t sse s 22 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds........ 23 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Government Funds to the Statement of Activities 24 Fund Financial Statements: Proprietary Funds Statement of Net Assets 25 Statement of Revenues, Expenses and Changes in Fund Net Assets Statement of Cash Flows 26 Statement of Fiduciary Assets and Liabilities 27 Notes to Financial Statements 28 29-52 ' Required Supplementary Information Statement of Budgeted and Actual Transactions - Budgetary Basis General Fund Deschutes County Sheriff's Office Special Revenue Fund Mental Health Special Revenue Fund Road Special Revenue Fund__________ _ Other Supplementary Data Combining and Individual Fund Statements and Schedules Combining Nonmajor Governmental Funds Combinin Balan Sh t• 55-57 58-60 61 62 g ce ee 69 Nonmajor Governmental Funds Nonmajor Special Revenue Funds 70-78 Nonmajor Debt Service Funds 79-81 Nonmajor Capital Projects Funds 82 Exhibit Page _3 of a Vq ' DESCHUTES COUNTY, OREGON TABLE OF CONTENTS - CONTINUED ' YEAR ENDED JUNE 30, 2005 ' Page Combining Statement of Revenues, Expenditures and Changes in Fund Balances 83 ' Nonmajor Governmental Funds Nonmajor Special Revenue Funds 84-94 Nonmajor Debt Service Funds 95-98 Nonmajor Capital Projects Funds 99-100 Combining Proprietary Funds ' Combining Statement of Net Assets: Solid Waste Funds 103 Fair & Expo Center Funds 104 ' Nonmajor Internal Service Funds 105 Combining Schedule of Revenues, Expenditures and Changes in Fund Net Assets: Solid Waste Funds 106 ' Fair & Expo Center Funds 107 Internal Service Funds 108 Combining Statement of Cash Flows: Solid Waste Funds 109 ' Fair & Expo Center Funds ................................................................................................................110 Nonmajor Internal Service Funds .....................................................................................................111 ' Budgetary Comparison Schedules: Schedules of Revenues, Expenditures/Expenses and Changes in Fund Balance - Budget and Actual: Business Loan Fund .........................................................................................................................115 ' Community Development Block Grant ..............................................................................................116 Cultural Coalition Fund .....................................................................................................................117 Grant Projects ..................................................................................................................................118 ' Justice Court ....................................................................................................................................119 La Pine Industrial 120 La Pine Senior Center Fund 121 ' Park Acquisition and Development 122 PERS Reserve 123 County School Fund 124 ' Special Transportation Fund 125 Taylor Grazing 126 Transient Room Tax 127 ' Video Lottery 128 Welcome Center 129 Industrial Development 130 1 Land Sales Maintenance 131 Liquor Enforcement 132 Victims' Assistance 133 Law Library 134 County Clerk Records 135 Commission on Children and Families 136 Exhibit DESCHUTES COUNTY, OREGON TABLE OF CONTENTS - CONTINUED YEAR ENDED JUNE 30, 2005 Page Community Justice - Juvenile 137 Sheriff's Asset Forfeiture 138 Court Facilities 139 Deschutes County Communication System 140 Sheriff's Capital Reserve 141 Health Department 142 HealthyStart - Prenatal 143 ABHA Accountable Behavioral Health Alliance 144 Acute Care Services 145 OHP - Chemical Dependency 146 Public Land Corner Preservation 147 Code Abatement 148 Community Development 149 CDD-TDC 150 Community Development Reserve 151 CDD Building Reserve Program 152 CDD Electrical Program Reserve 153 GIS Dedicated Fund 154 Natural Resource Protection 155 Federal Forest Title III 156 Road Building and Equipment 157 Road Improvement Reserve 158 Vehicle Maintenance and Replacement 159 Dog Control 160 Adult Parole & Probation 161 Deschutes County 911 Service District 162 911 CSD - Equipment Reserve 163 Extension/4-H 164 Black Butte Ranch County Service District 165 Sunriver Service District - General Fund 166 Sunriver Service District - Reserve Fund 167 2000 Series LTD Tax Improvement 168 2003 Series LTD Tax Improvement 169 2005 Series LTD Tax Improvement 170 CDD Building 1996 Full Faith and Credit, Series 2004 171 Full Faith and Credit, 2003 172 HHS / BJCC 1998 COPs 173 Government Center COPs 174 Public Safety 1993/1996/1998/2002 General Obligations Bond Debt Service 175 Redmond Building 1994 COPS 176 PERS, Series 2002 and 2004 Debt Service 177 Welcome Center 1988/1998 COPs 178 Exhibit DESCHUTES COUNTY, OREGON TABLE OF CONTENTS - CONTINUED YEAR ENDED JUNE 30, 2005 Page Bend Library CSD Debt Service 179 Redmond Library CSD Debt Service 180 Sunriver Library CSD Debt Service 181 Project Development Fund 182 Newberry Neighborhood 183 Local Improvement District 184 General County Projects 185 La Pine Building Purchase/Remodel 186 Remodel Projects Fund 187 Courthouse Remodel Project 188 Solid Waste Operations 189 Landfill Closure 190 Landfill Postclosure 191 Solid Waste Ca ital Projects p 192 Solid Waste Equipment Reserve 193 Environmental Remediation 194 SW North Area Development 195 Fair and Expo Center 196 Annual County Fair 197 Fair and Expo Construction 198 Fair and Expo Center Reserve 199 Fairgrounds Debt Service Fund 200 Building Services 201 Administrative Services 202 Finance 203 Le al g 204 Personnel 205 Information Technology 206 IT Reserve 207 Insurance 2 08 Health Benefits Trust 209 Capital Assets Used in the Operation of Governmental Funds Comparative Schedule by Source 213 Schedule by Function and Activity 214 Schedule of Changes by Function and Activity 215 Other Financial Schedules Fiduciary Funds - Statement of Changes in Assets and Liabilities - Detail Activity 219 Schedule of Property Taxes Transactions - All County Taxes 220 Exhibit Page & of a r l DESCHUTES COUNTY, OREGON TABLE OF CONTENTS - CONTINUED YEAR ENDED JUNE 30, 2005 ' Page STATISTICAL SECTION CONTENTS Financial Trends ' Net Assets by Component - Last Three Fiscal Years 225 Changes in Net Assets - Last Three Fiscal Years 226 Program Revenues by Function/Program - Last Three Fiscal Years 227 Fund Balances - Governmental Funds - Last Three Fiscal Years 228 Changes in Fund Balances - Governmental Funds - Last Three Fiscal Years 229 ' Revenue Capacity Assessed Value and Estimate Value of Taxable Property - Last Ten Fiscal Years 230-231 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 232-233 Principal Property Tax Payers - Current Year and Nine Years Ago 234 Property Tax Levies and Collections - Last Ten Fiscal Years 235 ' Debt Capacity Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 236-237 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 238 ' Direct and Overlapping Governmental Activities Debt - As of June 30, 2005 239 Legal Debt Margin Information - Last Ten Fiscal Years 240-241 Pledged-Revenue Coverage - Last Ten Fiscal Years 242-243 Demographic and Economic Information Demographic and Economic Statistics - Last Ten Calendar Years 244 Principal Employers - Current Year and Nine Years Ago 245 Operating Information Full-time Equivalent County Government Employees by Function/Program - Last Three Fiscal Years 246 Operating Indicators by Function/Program - Last Three Fiscal Years 247 Capital Asset Statistics by Function/Program - Last Three Fiscal Years 248 ' AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Audit Comments and Disclosures Required by State Regulations 251-253 SINGLE AUDIT COMPLIANCE ' 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 257-258 Exhibit A Page 7 of gq DESCHUTES COUNTY, OREGON TABLE OF CONTENTS - CONTINUED YEAR ENDED JUNE 30, 2005 Page Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 259-260 Schedule of Findings and Questioned Costs . 261 Schedule of Expenditures of Federal Awards 263-265 Exhibit Page $r of A <K9 INTRODUCTORY SECTION Exhibit Page _ of 0T rCs c0 W Department of Administrative Services O Michael A. Maier, Director ' 1300 NW Wall St, Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 September 29, 2005 wm.co.deschutes.or.us To the Board of County Commissioners and the citizens of Deschutes County, Oregon: State law requires that all general-purpose local governments publish, within six ' months of the close of each fiscal year, a complete set of financial statements presented in conformity with U.S. generally accepted accounting principles and audited in accordance with generally accepted auditing standards by a firm of certified ' public accountants licensed to perform audits of a municipal corporation. This report is published to fulfill that requirement for the fiscal year ended June 30, 2005. ' This report consists of management's representations concerning the finances of Deschutes County. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To ' provide a reasonable basis for making these representations, management of Deschutes County has established a comprehensive internal control framework that is designed both to protect the County's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of Deschutes County's financial ' statements in accordance with GAAP. Because the cost of internal controls should not outweigh their benefits, Deschutes County's comprehensive framework on internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Deschutes County's financial statements have been audited by Harrigan Price Fronk & Co. LLP, a firm of certified public accountants licensed to perform audits of a municipal corporation. The goal of the independent audit was to provide reasonable assurance that the financial statements of Deschutes County for the fiscal year ended June 30, 2005, are free of material misstatement. The independent audit involved examining, ' on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was reasonable basis ' for rendering an unqualified opinion that Deschutes County's financial statements for the fiscal year ended June 30, 2005, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial ' section of this report. The independent audit of the financial statements of Deschutes County was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require Quality Services Performed with Pride iii Exhibit 4 Page /O of .3. tq To the Board of County Commissioners and the citizens of Deschutes County, Oregon: September 29, 2005 the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These separately issued reports have been included in this comprehensive annual financial report. Management's discussion and analysis (MD&A) immediately follows the independent auditors' report and provides a narrative introduction, overview and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjuction with it. Profile of the Government The County was incorporated in 1916, is located in the central part of the state and covers an area of 3,055 square miles. The County has three elected commissioners, each serving four-year terms, who are elected at-large. Daily administrative duties are overseen by an appointed County Administrator, while the Board of Commissioners sets policy, adopts the annual budget and passes ordinances in accordance with state law. The County utilizes a budget committee, consisting of three citizens of the County and the three commissioners, to review the departmental budgets for each fiscal year. The financial reporting entity, Deschutes County, includes all funds of Deschutes County, as well as all of its component units. Component units are legally separate entities for which Deschutes County is financially accountable. The County provides a full range of services including sheriff's patrol and correction services, construction and maintenance of roads and bridges, property assessment, tax collection, public health and mental health services, land use planning, prosecution of criminals, election services, records maintenance and operation of a landfill and a fair and expo center. Blended component units, although legally separate entities, are, in substance, part of Deschutes County's operations and are included as part of Deschutes County. Accordingly, the Deschutes County 911, Deschutes County Extension/4-H, Black Butte Ranch and Sunriver Service Districts are reported as Special Revenue Funds of Deschutes County. Bend Library CSD, Redmond Library CSD and Sunriver Library CSD are reported as Debt Service Funds of Deschutes County. The annual budget serves as the foundation for Deschutes County's financial planning and control. Requested budgets are submitted from each fund, department and component unit county service district to the County's Budget Officer approximately three months prior to the beginning of the fiscal year. The Budget Officer submits a proposed budget to the Budget Committee based on these requested budgets approximately two months prior to the beginning of the fiscal year. The County is required to announce in advance and hold public hearings on the proposed budget and to adopt the budget by no later than June 30, the close of Deschutes County's Exhibit iv 11 11 11 I Page of 5 To the Board of County Commissioners and the citizens of Deschutes County, Oregon: September 29, 2005 fiscal year. The appropriated budget is prepared by fund, department and category (level of control). All transfers of appropriation between categories require approval by the Board of County Commissioners. Budget-to-actual comparisons are provided in this report for each individual governmental and proprietary fund for which an appropriated annual budget has been adopted. For the General Fund and the major special revenue funds, this comparison is presented beginning on page 55 as part of the basic financial statements for the governmental funds. All other funds are presented in a subsection of this report, which starts on page 115. Local economy Deschutes County is the outdoor recreation capital of Oregon. With noble, snow- capped peaks dominating the skyline to the west and the wide-open high desert extending to.the east, the beauty and uniqueness of Deschutes County captures the awe of locals and visitors alike. Deschutes County has grown into a bustling, exciting place where progress and growth are hallmarks. Beginning in the early 1990's and continuing to the present, Deschutes County has experienced the most rapid population growth of any county in the state. This growth is believed to be largely due to the area's invigorating climate and year-round recreation activities. The population is approximately 143,000, a 23% increase since 2000 and is projected to exceed 240,000 within 20 years. Recreational activities include downhill and cross-country skiing, snowboarding, fishing, hunting, hiking, rock- climbing, mountain climbing, whitewater rafting and golfing. Deschutes County is the host of diverse annual events including the Cascade Festival of Music, the Art Hop, Sisters Outdoor Quilt Show, Cascade Children's Festival, Pole Pedal Paddle, Sisters Rodeo, WinterFest, Sunriver Sunfest, Bend Film Festival, Pacific Northwest Amateur Golf Tournament and the Cascade Cycling Classic. In fiscal year 2004-2005 the County's taxable assessed value increased by 9.4%, approximately $1.05 billion, to a total of $12.2 billion. Formerly a region dependent on wood products, Deschutes County has steadily diversified its employment and economic base. For the past decade, Deschutes County has lead Oregon in high technology growth. Numerous companies from the Silicon Valley, Portland-Vancouver Metro and Puget Sound have relocated or expanded here. Many of these firms are small but extremely innovative, producing niche-market products from semiconductors to software, medical instruments to recreational equipment. Tourism in Deschutes County contributes to the diversified economy due to the abundance of year-round recreational activities. The County is home to a major medical center, designated as a level II trauma center, with more than 200 physicians on staff. Long-term financial planning. An outcome of a comprehensive facilities study was a plan to meet the County's needs for the next 20 years. The expansion and remodel of the Justice Building began in v Exhibit Page of To the Board of County Commissioners and the citizens of Deschutes County, Oregon: September 29, 2005 June 2004 and was completed June 2005. The County has plans to upgrade its solid waste facility with a state of the art re-cycling center. These projects, and projects completed in prior fiscal years, were funded with a $32 million Full Faith & Credit bond issued in May 2003. The debt will be repaid from rental charges to the State, internal rent charges to County departments occupying the buildings and from resources in the Project Development Fund and General County Projects Fund. In February 2005, the County issued $6.3 million in tax-free debt to provide resources for the purchase of land adjacent to the County's public safety complex, for the remodel of the County's historic Courthouse which presently is used as offices by the District Attorney and the State courts and for the construction of an RV Center at the County's fair and expo center. To take advantage of continuing low interest rates, in September 2004, the County entered into an advanced refunding of the debt issued in 1996 to build the County's Community Development Department building. Over the past two decades, there have been growth-related problems in Southern Deschutes County, ranging from water quality to substandard roads, to wild land fire hazards. Among the most serious issues, there are approximately 1,800 lots which have water tables at two feet or less. Most of these lots were created before Oregon land use laws came into existence. The population in the area is widely dispersed and there are few available services, such as water, sewer and paved roads. Deschutes County confronted this issue in a comprehensive manner, including purchasing a large block of land from BLM to use as a "new neighborhood," to create new, livable lots to trade for the lots that are unusable. The first phase of this development was sold to a private developer in April 2004, building permits have been issued, residential units have been constructed and sold to private homeowners. In 1999, the County embarked on a program to sell its under-utilized real property. The proceeds from such activities are accumulated to fund future development of facilities to be used for providing services to the citizens of Deschutes County. As a result of this program, the County's reserves for future capital development have increased by $1.2 million during the current fiscal year. Cash management policies and practices During the year, the County's unrestricted cash balances were invested in accordance with the County's investment policy as authorized by the Board of County Commissioners and the Deschutes County Investment Advisory Committee. The primary objective of investing, as stated in the investment policy, is the preservation of capital. The County Treasurer invests funds on behalf of the County and other public agencies, as a trustee, in a manner to earn an appropriate yield while minimizing risk and meeting the liquidity needs. County monies and monies of other agencies for which the County acts as trustee, are pooled for investment purposes unless otherwise provided for under the County investment policy. The investments include bank certificates of deposit, federal vi Exhibit 4 Page 13 of X~~ To the Board of County Commissioners and the citizens of Deschutes County, Oregon: September 29, 2005 agency instruments, commercial paper and the Oregon Local Government Investment Pool. ' • Maturity ranges: 3 months - 24 months • Average maturity: 15 months • Average yield: 2.5% Risk management. The County budgets its risk management activities in two internal service funds. Each County department covered by the insurance provided by the Insurance Fund makes payments into this fund for Workers' Compensation, Unemployment, General Liability, Property Damage and Vehicle Insurance. Insurance rates are determined based on an actuarial study and resources are accumulated in this fund to meet future losses. Third party coverage is maintained for potential property damage losses. The County self insures for its health benefits and ' limits its exposure with a stop-loss policy. For medical/dental insurance risk, the Employee Benefits Advisory Committee plays an active role in minimizing the costs of losses to the County. Pension and other post-employment benefits Deschutes County provides retirement benefits for those employees meeting the qualifications of the Oregon Public Employee Retirement System (OPERS). OPERS is an agent multiple-employer defined benefit public employee pension plan. In addition to the pension benefits, the County contributes to the premium for health/dental/vision insurance for qualifying retirees, until the time such employees are eligible to participate in Medicare. Awards and acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the County for its comprehensive annual financial report for the year ended June 30, 2004. This was the fourth consecutive year that the County had submitted its report for consideration of the award. In order to be awarded a Certificate of Achievement, the County published an easily readable and efficiently organized comprehensive annual financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of the comprehensive annual financial report on a timely basis was made possible by the dedicated service of the entire staff of the Finance Department. We would like to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Acknowledgment should also be given to the Board of County Commissioners for their interest and support in vii Exhibit Page / of To the Board of County Commissioners and the citizens of Deschutes County, Oregon: , September 29, 2005 planning and conducting the operations of the County in a responsible and progressive ' manner. Respectfully submitted, Mike Maier Marty Wynne Administrative Services Director Finance Director Exhibit 4 Page 15_ of viii DESCHUTES COUNTY, OREGON COUNTY OFFICIALS JUNE 30, 2005 ELECTED OFFICIALS COUNTY COMMISSIONERS Mike Daly Tom DeWolf Dennis Luke ASSESSOR Scot Langton SHERIFF Les Stiles COUNTY CLERK Nancy Blankenship DISTRICT ATTORNEY Mike Dugan TREASURER Marty Wynne JUSTICE COURT Charles Fadeley APPOINTED OFFICIALS Administrative Service Director Mike Maier County Counsel Mark Pilliod Finance Director Marty Wynne Internal Auditor David Givans Administrative Building 1300 NW Wall Street Bend OR 97701 ix Exhibit 4 Page -L( 'P - of a 1 1 1 Ais I ~ 1 l 1 v ' 1 1 1 1 O Hal Q V .C p A Fi 8& Nil A 1 ,A 1 1 1 1 1 a 1 i~ !],'@I o HIf Na] tq ^pI 1 a rill i~ a Exhibit Page j of ul\ X Certificate of Achievement for Excellence in Financial Reporting Presented to Deschutes County, Oregon For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. TA CI WM n° COBfORAigq President , lyr ato Executive Director Xi Exhibit A- Page f X of gq This page intentionally left blank. C Exhibit_ of Page _1-9--of P FINANCIAL SECTION Exhibit 4 Page _2_0 of This page intentionally left blank. Exhibit A- oil $ Page 2-1 of John P. Harrigan, CPA Wesley B. Price III, CPA Candace S. Fronk, CPA INDEPENDENT AUDITORS' REPORT Board of Commissioners Deschutes County, Oregon We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise the County's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the management 975 SW Colorado of Deschutes County, Oregon. Our responsibility is to express opinions on these basic Suite 200 financial statements based on our audit. Bend. OR 97702 Tel (541) 382-4791 We conducted our audit in accordance with generally accepted auditing standards in Fax(541)388-1124 the United States of America and Government Auditing Standards, issued by the www.bendcpa.com Comptroller General of the United States. Those standards require that we plan and email@bendcpa.com perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the basic statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of Deschutes County, Oregon, as of June 30, 2005, and the respective changes in financial position and cash flows where applicable, thereof, for the year then ended, in conformity with generally accepted accounting principles of the United States of America. The accompanying management discussion and analysis starting on page 5 and budgetary comparison information on pages 55-62 are not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. ' In accordance with Government Auditing Standards, we have also issued our report dated September 29, 2005, on our consideration of Deschutes County's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of Exhibit Page 1_ _ of g9 Board of Commissioners Deschutes County, Oregon that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The Other Supplementary Data and the Schedule of Expenditures of Federal Awards as listed in the table of contents are presented for purposes of additional analysis and as required by U.S. Office of Management and Budget Circular A-133, "Audits of State, Local Governments and Non-Profit Organizations", and are not a required part of the basic financial statements. The Required Supplementary Information, Other Supplementary Data and the Schedule of Expenditures of Federal Awards have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The Introductory and Statistical sections as listed in the table of contents have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we express no opinion on them. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants By: rAllml Candace S. Fronk - a partner September 29, 2005 C 0 Exhibit 4 Page -2-3_ of a a DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 As management of Deschutes County, we offer readers of Deschutes County's financial statements this narrative overview and analysis of the financial activities of Deschutes County for the fiscal year ended June 30, 2005. We encourage readers to consider this information in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages iii-viii of this report. ' Financial Highlights • The assets of Deschutes County exceeded its liabilities at June 30, 2005, by $95,919,000. Of this ' amount, $40,613,000 is invested in capital assets, net of related debt, $23,403,000 is restricted for capital projects, debt service and other purposes and $31,903,000 is unrestricted and may be used to meet on-going obligations to citizens and creditors • Total net assets increased by $17,858,000; $15,576,000 of this increase is in unrestricted net assets. ' • As of June 30, 2005, Deschutes County's governmental funds reported combined ending fund balances of $51,915,000. • As of June 30, 2005, the unreserved fund balance in the General Fund was $5,670,000, or 56% of total General Fund fiscal year 2004-2005 expenditures. ' • Deschutes County's total debt increased by $1,070,000, or 1%, during the fiscal year ended June 30, 2005. A major factor contributing to this change is due to borrowing $6.7 million for purchase of property, remodel of the County courthouse, updates to existing County facilities, improvements to the County Fair & Expo facilities and road improvements (LID) and repayment of $5.5 million of existing debt. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Deschutes County's basic financial statements. These basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. ' Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of Deschutes County's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of Deschutes County's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may ' serve as a useful indicator of whether the financial position of Deschutes County is improving or deteriorating. The Statement of Activities presents information showing how Deschutes County's net assets changed during the fiscal year ended June 30, 2005. Changes in net assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash, or other financial assets, flows. ' Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued vacation, that will result in cash flows in future fiscal periods. -5- ' Exhibit DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 Each of these government-wide financial statements, Statement of Net Assets and Statement of Activities, distinguish functions of Deschutes County that are supported primarily by taxes and inter-governmental revenues (governmental activities) from other functions that are intended to recover all, or a significant portion of, their costs through user fees and charges (business-type activities). The governmental activities of Deschutes County include general government, general services, public protection, County roads, health and welfare and education. The business-type activities of Deschutes County include Solid Waste operations and the Deschutes County Fair & Expo Center. The government-wide financial statements include seven county service districts: Deschutes County 911 CSD, Extension/4-H CSD, Black Butte Ranch CSD, Sunriver Service District, Bend Library CSD, Redmond Library CSD and Sunriver Library CSD. These entities are legally separate but are included as blended component units based on the criteria described in the Notes to Financial Statements (Note 1 - Summary of Significant Accounting Policies). Requests for copies of the separately issued financial statements for the county service districts should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Bend, OR 97701. The government-wide financial statements can be found on pages 19-20 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Deschutes County, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Each of the funds of Deschutes County is classified in one of three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government-wide financial statements. However, unlike the govemment-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government-wide Statement of Net Assets and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-wide Statement of Activities have been included in this report. Deschutes County reported activity in 78 individual governmental funds during the fiscal year ended June 30, 2005. Information is presented separately in the governmental funds Balance Sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund and the County's major funds (Sheriff's Office, Mental Health, Road and Project Development Funds). Data from all other governmental funds are combined into a single, aggregated presentation. Individual data for each of these non-major governmental funds is provided in the form of combining statements in the "Other Supplementary Data" section of this report and in the budget to actual comparison schedules. Exhibit 11 Page 2_S___ of of'N -6- DESCHUTES COUNTY, OREGON ' MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 ' Deschutes County adopts an annual budget for each of its funds. A budgetary comparison statement has been provided for each of these funds to demonstrate compliance with the annual budget. ' The Basic Governmental Fund Financial Statements can be found on pages 21_24 of this report. Proprietary funds. Deschutes County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions as business-type activities in the government-wide financial statements. Deschutes County uses enterprise funds to account for its Solid Waste and Fair & Expo Center operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among Deschutes County's various functions. Deschutes County uses internal service funds to account for its building, administrative, finance, legal, personnel, information technology and insurance services. ' Because these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds financial statements provide similar, but more detailed, information as the government- wide financial statements. The proprietary fund financial statements provide information separately for the Solid Waste and the Fair & Expo Center operations, both of which are considered to be major funds of Deschutes County. The internal service funds are combined into a single, aggregated presentation in the ' proprietary funds financial statements. Individual fund data for the internal service funds is provided in the form of combining statements in the "Supplementary Data" section of this report and in the budget to actual comparison schedules. The Basic Proprietary Funds Financial Statements can be found on pages 25-27 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support Deschutes County's own programs. The Basic Fiduciary Funds Statement of Assets and Liabilities can be found of page 28 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 29-52 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents as required supplementary information, the budgetary comparisons for the General Fund and major special revenue funds. Required supplementary information begins on page 55. The combining statements referred to above in connection with non-major governmental funds and internal service funds are presented in the "Other Supplementary Data" section of this report. Government-wide Financial Analysis Net assets, at a specific point in time, serve as a useful indicator of an entity's financial position. In the case of Deschutes County, assets exceed liabilities by $95,919,000 at June 30, 2005. Forty-two percent of Deschutes County's net assets represent its investment in capital assets (land, infrastructure, buildings and equipment) less the related outstanding debt issued to acquire those capital assets. Deschutes County uses these capital assets to provide services to citizens and these net assets are -7- Exhibit DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 not available for future spending. Although Deschutes County's investment in its capital assets is reported net of related debt, the resources needed to repay this debt must be provided from other sources, as the capital assets will not be liquidated to service the debt. Twenty-four percent of Deschutes County's net assets are restricted for use in its long-term capital projects and debt service requirements. The remaining thirty-three percent, $31,903,000, of Deschutes County's net assets may be used to meet the County's on- going obligations to citizens and creditors. As of June 30, 2005, Deschutes County reports positive balances in all three categories of net assets (capital assets net of debt, restricted and unrestricted) for the government as a whole and for the governmental activities. Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets DESCHUTES COUNTY'S Net Assets Governmental activities Business-ty pe activities Total 2005 2004 2005 2004 2005 2004 $ 84,123,794 $ 80,256,809 $ 24,711,469 $ 20,164,976 $ 108,835,263 $ 100,421,785 79,850,600 70,982.584 36,436.687 36.774.548 116,287,287 107.757.132 163,974,394 151,239,393 61.148.156 56,939,524 225,122,550 208.178.917 79,232,964 77,702,557 40,632,890 38,633,752 119,865,854 116,336,309 7,264,246 11,362.348 2.072.980 2,418,482 9,337,226 13.780.830 86.497.210 89,064,905 42.705.870 41,052.234 129,203,080 130.117.139 28,248,171 21,977,138 15,300,732 21,835,161 33, 928.281 18, 362,189 $ 77.477.184 $ 62.174.488 12,364,858 12,500,715 8,102,596 5,421,536 (2,025.168) (2.034.962) $ 18.442.2RR $ 15.887.~R9 40,613,029 34,477,853 23,403,328 27,256,697 31.903.113 16.327.227 $ 95.919.470 278.06177 Deschutes County's net assets increased by nearly $18 million during the year ended June 30, 2005, allowing for the repayment of long-term debt and increase in operating and capital reserves. INCREASE DUE TO GOVERNMENTAL ACTIVITIES , • Due to pending litigation regarding Oregon Public Employee Retirement System pension plan, the County established a reserve which increased by $2.1 million in fiscal year 2005. ' • The Road Department activities resulted in an increase to the County's net assets of nearly $4 million of resources which were used for infrastructure improvements. , • In order to achieve a reserve balance approximately equal to one month of operating expenses, the County's Mental Health Department has not been filling all authorized personnel positions. This ' resulted in an increase in net assets of nearly $1 million. • Sunriver Service District, a blended component unit of the County established July 1, 2002, plans to ' increase its reserves to improve its economic. stability. During fiscal year 2004-2005, its reserves increased by nearly $300,000. 11 Exhibit Page_a.-7_ of agQl -8- 11 DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 • Effective July 1, 2003, the tax rate for Deschutes County 911 County Service District's tax rate was ' increased to build resources for future technological upgrades and staff retention. As a result, its net assets increased by approximately $1 million. • The County's Community Development Department is directly affected by business cycles which determine the level of development in the County. During fiscal year 2004-2005, the economy had a favorable impact on development, allowing it to set aside $1.4 million to minimize the negative impact of an economic downturn. • Taxes levied and used for the repayment of bonds resulted in an increase to the County's net assets of $2.9 million. • In order to meet future unforeseeable risks, the County's charges to operating funds for health benefits, general liability, property damage, vehicle, workers' compensation and unemployment insurance provide an increase in these funds' reserves of nearly $1 million. INCREASE DUE TO BUSINESS-TYPE ACTIVITIES Current year activities of the County's solid waste enterprise provided resources to increase its reserves by $2 million for the future costs associated with the closure and postclosure responsibilities of the landfills. -9- Exhibit R Page a of 6 DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 DESCHUTES COUNTY'S Changes in Net Assets Program revenues: Charges for services Grants and contributions General revenues: Property taxes Othertaxes Other Total revenues Expenses: General government General services Public protection County roads Health and welfare Education Interest on long-term debt Solid waste Fair & expo center Total expenses Increase in net assets before transfers Transfers Change in net assets Net assets, beginning Net assets, ending Exhibit P" Page of agok Governmental activities Business-type activities 2005 2004 2005 2004 $ 38,256,550 $ 33,678,880 $ 9,008,063 $ 8,267,518 24,612,939 22,564,184 75,496 109,555 37,352,996 32,534,677 3,048,662 3,004,567 1.736.971 5.962.135 105,008,118 97,744,443 571,128 328,770 18, 301, 423 14, 619,177 35,908,104 36,085,016 9,133,389 8,241,978 20,471,295 19,222,151 1,151,264 1,143,468 3,486,134 3,265,500 89,022,737 82,906,060 1,904,154 1,844,947 382,069 229,703 11, 369, 782 10,451, 723 5,291,801 3,611,080 4,205,671 3,805,532 9,497,472 7,416,612 15, 985, 381 14, 838, 383 (682,685) (294,227) 15,302,696 14,544,156 62,174,488 47,630,332 $ 77.477.184 L 62.174.488 1,872,310 3,035,111 682,685 294,227 2,554,995 3,329,338 15, 887, 291 12, 557, 953 18.442.286 $ 15.887.291 -10- Total 2005 2004 $ 47,264,613 $ 41,946,398 24,688,435 22,673,739 39,257,150 34,379,624 3,048,662 3,004,567 2,119,040 6,191,838 116, 377, 900 108,196,166 571,128 328,770 18, 301, 423 14, 619,177 35,908,104 36,085,016 9,133,389 8,241,978 20,471,295 19,222,151 1,151,264 1,143,468 3,486,134 3,265,500 5,291,801 3,611,080 4,205,671 3,805,532 98,520,209 90,322,672 17,857,691 17,873,494 17,857,691 17,873,494 78,061,779 60,188,285 S Q~5.91 q-470 $ 78.061.779 DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 Expenses and Program Revenues - Governmental Activities IS Expenses 40,000 0 Revenues 35,000 ' 30,000- 25,000- 20.000 15.000 10,000 ' 5,000 0 General government General services Publ ic protection County roads Health and Welfare Education Interest on long-term ' debt ' Revenues by Source - Governmental Activities ' Other taxes 3% ' Property taxes Charges for services 36% 36% Other Capital grants and 2% contributions Operating grants and ' 1% contributions 22% -11- ' Exhibit O Page. 3 D of DESCHUTES COUNTY OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS ' JUNE 30, 2005 Expenses and Program Revenues - Business-type Activities ' 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Solid waste Fair and expo center , Revenues by Source - Business-type Activities ' Charges for service 7£3% , Operating grants and contributions 1% , operty taxes ' 17% Other , 4% -12- Exhibit a~~ Page _E1- of DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 Financial Analysis of the County's Funds r Deschutes County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Deschutes County's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Deschutes County's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending as of the end of the fiscal year. As of June 30, 2005, $51,915,000 is the reported combined ending fund balance for Deschutes County's governmental funds, an increase of $6,082,000 from June 30, 2004. Fifty-eight percent of this increase, $3.5 million, was generated by the County's major funds. Expenditures from the County's capital project funds account for a decrease in governmental fund balances of $3 million. Non-major special revenue funds, ' specifically the reserve fund for future increase in pension plan rates, community development and the Deschutes County 911 show an increase in fund balance of $5.8 million. As of June 30, 2005, the fund balance of Deschutes County's General Fund is $5,670,000, all unreserved. One measure of the General Fund's liquidity is the relationship of both the unreserved and the total fund balance to the Fund's total expenditures. The fund balance as of June 30, 2005, for the General Fund is 56% of total General Fund fiscal year 2004-2005 expenditures. Deschutes County's General Fund balance increased by $555,000 during the fiscal year ended June 30 , 2005. Many offsetting factors contribute the this increase. Increases in the amount of property tax revenues and continued robust recording activity in the Clerk's Office result in an increased fund balance. Proprietary funds. The information presented in the proprietary funds statement is similar to that in the government-wide financial statements, but provides greater detail. At June 30, 2005, unrestricted net assets of the Solid Waste Department were a deficit of $744,000 and for the Fair & Expo Center were a deficit of $1,282,000. General Fund Budgetary Highlights There were no differences, other than appropriation transfers, between the General Fund's budget as originally adopted and the final amended budget. General Fund actual revenues exceeded estimated revenues by $1,942,000. Taxes exceeded the budgeted amount by nearly $500,000 and fees for services, primarily from the County Clerk's Office activities, exceeded the estimated revenues by $1,009,000. Capital Asset and Debt Administration Capital Assets. Deschutes County's investment in capital assets for its governmental and business-type activities as of June 30, 2005, is $116,287,000, net of accumulated depreciation. This investment in capital assets includes land, buildings, equipment and infrastructure such as roads and bridges. The net increase in capital assets for the year ended June 30, 2005, was 8%. -13- Exhibit lar Page 3.;~_ of DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 Changes in the County's capital assets during the year ended June 30, 2005, were due to the following: • Acquisition of $2.3 million of land for current and future County use. • Infrastructure (roads, bridges, culverts) increased by $3,517,000 during the fiscal year. • Major remodeling and expansion of the County's Justice Center and renovation of the County's historic courthouse. Additional information on Deschutes County's capital assets is included in Note III.D on page 38 of this report. Long-term debt. As of June 30, 2005, Deschutes County's outstanding bonded debt was $98,717,000. Of this, $85,119,000 is backed by the full faith and credit of the County and $1,137,000 is special assessment debt for which the County is liable in the event of default by the property owners subject to the assessment. DESCHUTES COUNTY'S Outstanding Debt Bonds Governmental activities Business-type activities 2005 2004 2005 2004 General Obligation Bonds OR Local Government Pension Bonds Full Faith & Credit Obligation Special assessment debt with governmental commitment Total $ 22,230,000 $ 23,190,000 8.853.415 6.190.234 $ 31,083,415 $ 29,380,234 $ 23,264,185 $ 25,219,084 12,460, 396 12,485, 979 30.771.585 26.094.766 1,137,498 1,132,202 $ 67,633,664 $ 64,932,031 Total 2005 2004 $ 45,494,185 $ 48,409,084 12,460,396 12,485,979 39.625.000 32.285.000 1,137,498 1,132,202 $ 98,717,079 $ 94,312,265 Deschutes County's bonded debt increased by $4,400,000 (5%) during the fiscal year. This is due mainly to the issuance of $8,500,000 in bonds for the addition of capital assets at the County's Fair & Expo Center ($2.8 million) remodeling of the County's historic courthouse, purchase of land and other general capital projects ($3.5 million), special assessment for LID ($370,000) and the refunding of certificates of participation ($1.8 million) and the repayment of $4,100,000 of existing bonded debt. Deschutes County's most recent debt issue was rated Al by Moody's Investors Services. State statutes limit the amount of general obligation debt a governmental entity may issue to 2% of its real market value. With real market value of $17.6 billion, the current debt limitation for Deschutes County is $352,345,000. The County's current general obligation of $45,494,000 represents 13% of this limitation. Additional information on Deschutes County's long-term debt is included in Note III. F. on pages 40-44 of this report. Exhibit Pr - Page _ of 9-$ -14- DESCHUTES COUNTY, OREGON MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2005 Key Economic Factors and Budgets Information for the Future • The unemployment rate in the State of Oregon is one of the highest in the United States, but the economy of Deschutes County has been robust, especially in residential and commercial construction. Deschutes County has experienced the highest population growth rate of all Oregon counties over the past twelve years. • The County's taxable assessed value is expected to increase from fiscal year 2004-2005 to fiscal year 2005-2006 by 9.4%, to approximately $13.3 billion. Requests for Information This financial report is designed to provide a general overview to those parties interested in Deschutes County's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Bend, OR 97701. -15- " Exhibit ~ Page 3-4 - 0 f 2-V- This page intentionally left blank. Exhibit P Page 3 of g~ BASIC FINANCIAL STATEMENTS Exhibit I~- Page !e_of , This page intentionally left blank. Exhibit 14 Page 3 Of-9- DESCHUTES COUNTY, OREGON STATEMENT OF NET ASSETS JUNE 30, 2005 Governmental Business-Type Activites Activities Total ASSETS Cash and cash equivalents $ 22,726,842 $ 8,225,746 $ 30,952,588 Investments, plus accrued interest 36,341,211 14,096,119 50,437,330 Restricted cash 15,327 - 15,327 Taxes receivable 1,743,464 76,761 1,820,225 Accounts receivable 2,386,808 555,045 2,941,853 Notes and contracts receivable, net of allowance 5,764,331 - 5,764,331 Assessments receivable 1,149,783 - 1,149,783 Prepaid items - 127,292 127,292 Inventory 766,609 - 766,609 Total current assets 70,894,375 23,080,963 93,975,338 Other assets 13,229,419 1,630,506 14,859,925 Capital assets: Land 8,276,684 635,188 8,911,872 Construction in progress 1,497,487 1,229,376 2,726,863 Infrastructure 8,974,877 - 8,974,877 Land improvements 3,030,800 12,491,456 15,522,256 Building & improvements 48,936,655 19,199,065 68,135,720 Equipment & vehicles 9,134,097 2,881,602 12,015,699 Total capital assets 79,850,600 36,436,687 116,287,287 Total assets 163,974,394 61,148,156 225,122,550 LIABILITIES Accounts payable 2,840,990 249,837 3,090,827 Accrued interest 332,035 156,134 488,169 Unearned revenues 408,521 381,958 790,479 Compensated absences 5,194,339 205,112 5,399,451 Long term debt: Due within one year 3,682,700 1,285,051 4,967,751 Due in more than one year 72,369,571 31,051,461 103,421,032 Accrued claims payable 1,669,054 - 1,669,054 Accrued landfill closure costs - 9,376,317 9,376,317 Total liabilities 86,497,210 42,705,870 129,203,080 Net Assets Invested in capital assets, net of related debt 28,248,171 12,364,858 40,613,029 Restricted for: Capital projects 12,678,206 8,102,596 20,780,802 Debt service 2,526,022 - 2,526,022 Road projects 96,504 - 96,504 Unrestricted 33,928,281 (2,025,168) 31,903,113 Total net assets $ 77,477,184 $ 18,442,286 $ 95,919,470 The notes to the financial statements are an integral part of this statement. 1 -19- Exhibit pv Page 3 of --4E~ DESCHUTES COUNTY, OREGON STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2005 Activities: Governmental General government General services Public protection County roads Health and welfare Education Interest and fiscal charges Total governmental activities Business-type: Solid waste Fair and Expo Center Total business-type activities Total Deschutes County Net (Expense) Revenue and Program Revenues Changes in Net Assets Fees, Fines and Operating Capital Grants Charges for Grants and and Governmental Business-Type Expenses Services Contributions Contributions Activities Activities Total $ 571,128 $ 9,351 $ - $ - $ (561,777) $ - $ (561,777) 18,301,423 17,206,627 2,127,853 1,400,077 2,433,134 - 2,433,134 35,908,104 4,808,358 3,901,814 78,579 (27,119,353) - (27,119,353) 9,133,389 12,685,581 518,290 8,000 4,078,482 - 4,078,482 20,471,295 2,396,392 16,578,326 - (1,496,577) - (1,496,577) 1,151,264 1,150,241 - - (1,023) - (1,023) 3,486,134 - - (3,486,134) - (3,486,134) 89,022,737 38,256,550 23,126,283 1,486,656 (26,153,248) (26,153,248) 5,291,801 7,102,223 - - 1,810,422 1,810,422 4,205,671 1,905,840 75,496 - - (2,224,335) (2,224,335) 9,497,472 9,008,063 75,496 (413,913) (413,913) $ 98,520,209 . $ 47,264,613 $ 23,201,779 $ 1,486,656 (26,153,248) (413,913) (26,567,161) General revenues: Taxes: Property taxes, levied for general purposes Property taxes, levied for sheriff services Property taxes, levied for bonded debt Transient room tax Earnings on investments Interfund gain (loss) on transfer of assets Loss on sale of capital assets Transfers: Total general revenues and transfers Change in net assets Net assets - beginning Net assets - ending The notes to the financial statements are an integral part of this statement. -20- Exhibit Page of 21,637,975 - 21,637,975 12,890,168 - 12,890,168 2,824,853 1,904,154 4,729,007 3,048,662 - 3,048,662 1,758,483 427,756 2,186,239 671 (671) - (22,183) (45,016) (67,199) (682,685) 682,685 41,455,944 2,968,908 44,424,852 15,302,696 2,554,995 17,857,691 62,174,488 15,887,291 78,061,779 $ 77,477,184 $ 18,442,286 $ 95,919,470 DESCHUTES COUNTY, OREGON GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2005 ASSETS Cash and cash equivalents Investments, plus accrued interest Restricted cash Taxes receivable Accounts receivable Notes and contracts receivable Assessments receivable Due from other funds Inventory ' Prepaid expenses Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Deficit in pooled cash accounts Deposits ' Due to other funds Deferred revenues Total liabilities Fund balances: Reserved for. Inventory Unreserved Unreserved, reported in nonmajor. Special revenue funds Debt service funds Capital project funds Total fund balances Total liabilities and fund balances Other Total Project Governmental Governmental General Fund Sheriff Mental Health Road Development Funds Funds $ 2,243,738 $ 615,007 $ 952,191 $ 2,132,322 $ 2,554,140 $ 11,353,765 $ 19,851,163 3,844,009 1,054,039 1,631,585 3,653,486 4,377,453 16,820,443 31,381,015 - - - 15,327 15,327 569,612 470,229 - - - 703,624 1,743,465 207,243 91,509 224,502 151,057 - 1,631,470 2,305,781 - - 81,023 - 3,359,566 2,682,320 6,122,909 - - - - 1,149,784 1,149,784 - - - - - 400,000 400,000 - - 766,609 - - 766,609 7,175 - 1,725 - - 8.900 $ 6,871,777 $ 2,230,784 $ 2,889,301 $ 6,705,199 $ 10,291,159 . $ 34,756,733 $ 63,744,953 $ 390,052 $ 209,787 $ 153,652 $ 280,003 $ 1,482 $ 1,611,157 $ 2,646,133 - - - 18,476 18,476 72,778 - - - - 3,200 75,978 400,000 400,000 739,242 376,183 81,023 - 3,327,804 4,165,576 8,689,828 1,202,072 585,970 234,675 280,003 3,329,286 6,198,469 11,830,415 766,609 - - 766,609 5,669,705 1,644,814 2,654,626 5,658,587 6,961,873 - 22,589,605 24,853,323 24,853,323 1,638,674 1,638,674 2,066,327 2,066,327 5,669,705 1,644,814 2,654,626 6,425,196 6,961,873 28,558,324 51.914.538 $ 6,871,777 $ 2,230,784 $ 2,889,301 $ 6,705,199 $ 10,291,159 $ 34,756,733 $ 63,744,953 The notes in the financial statements are an integral part of this statement. -21- Exhibit Page _.D of DESCHUTES COUNTY, OREGON RECONCOLIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30, 2005 Total fund balances for governmental funds $ 51,914,538 Total net assets reported for governmental actitivies in the statement of net assets is different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land 8,276,684 Construction in progress 1,497,487 Infrastructure, net of $632,302 accumulated depreciation 8,974,877 Land improvements, net of $921,320 accumulated depreciaton 2,941,731 Buildings and improvements, net of $8,837,243 accumulated depreciation 48,936,655 Equipment and vehicles, net of $11,687,460 accumulated depreciation 8,647,165 Total capital assets 79,274,599 Other assets are not financial resources and therefore are not reported in the funds: Deferred pension expense 11,185,959 Prepaid expenses and deferred issuance costs 1,035,200 Internal service funds are used by the County to charge the cost of insurance, building services, administrative services, finance, legal, personnel and information technology to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. Internal service fund net assets are: 6,124,365 Some of the County's receivables will be collected after year-end, but are not available soon enough to pay for the current period's expenditures and therefore are reported as deferred revenues in the funds. 8,023,427 Long tens liabilities applicable to the County's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities - both current and long term - are reported in the statement of net assets. Also, during the year, the County refunded some of its existing debt. The amount borrowed is received in governmental funds and increases fund balance. The amount that was sent to the paying agent ($1,953,354) to be escrowed for payment of the old debt ($1,810,000) as it comes due, is paid out of governmental funds and reduces fund balance. The difference between those two amounts ($143,354) will be amortized as an adjustment to interest expense in the statement of activities over the remaining life of the refunded debt. Balances at June 30, 2005 are: Accrued interest on debt (332,035) Certificates of participation (7,360,000) Bonds and notes payable (68,033,664) Capital leases (43,354) Compensated absences (4,692,659) Unamortized deferred cost of refunding debt 996,060 Unamortized premium and discount on bonds (615,252) Long term liabilities (79,748,869) Total net assets of governmental activities $ 77,477,184 The notes to the financial statements are an integral part of this statement. Exhibit A-- -22 I DESCHUTES COUNTY, OREGON GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2005 Non-major Total Project Governmental Governmental General Fund Sheriff Mental Health Road Development Funds Funds REVENUES Taxes $ 14,812,988 $ 12,858,579 $ - $ - $ $ 12,739,194 $ 40 410 761 Licenses and Permits 227,445 - 115,899 _ _ 196,001 , , 539 345 Fines, forfeitures, and penalties 487,747 345,569 25,937 471,782 , 1 331 035 Investment earnings and rent 234,974 106,137 75,185 162,054 396,443 1,905,258 , , 2 880 051 Intergovernmental 2,556,502 2,455,106 9,828,312 10,880,074 - 15,622,659 , , 41 342 653 Charges for services 2,664,712 486,218 2,818,704 503,178 - 13,378,118 , , 19 850 930 Other 27,000 387,288 1,861,848 852,807 , , 3,128,943 Total revenues 20,984,368 16,278,609 12,864,037 11,932,594 2,258,291 45,165,819 109,483,718 EXPENDITURES Current: General government 566,691 - - - - 566 691 General services 9,059,833 - - - 82,589 7,283,399 , 16,425 821 Public protection - 17,413,346 - - - 17,764,330 , 35 177 676 County roads - - - 10,585,482 _ 605,242 , , 11 190 724 Health and welfare 148,345 13,031,871 10,071,967 , , 23 252 183 Education Debt service: - - - 1,151,264 , , 1,151,264 Principal payments 248,230 - - 3,561,475 3,809 705 ' Interest 5,904 3,334,145 , 3,340 049 Trustee fees 7,685 , 7 685 Debt issuance costs - - 21,096 109,822 , 130 918 Capital outlay 104,219 752,710 - 570,936 1,367,516 _ 9,067,542 , 11,862,923 Total expenditures 10,133,222 18,166,056 13,031,871 11,156,418 1,471,201 52,956,871 106,915,639 Excess (deficiency) of revenues over expenditures 10,851,146 (1,887,447) (167,834) 776,176 787,090 (7,791,052) 2,568,079 OTHER FINANCING SOURCES (USES) Transfers in 156,681 2,650,000 1,340,722 290,000 300,000 13,750,997 18,488 400 Transfers out (10,452,450) (260,500) (150,000) (870,000) (1,039,956) (6,410,658) , (19,183,564) Issuance of debt - - - - 1,160,311 2,722,797 3,883 108 Discount on debt - - - - (2,222) (4,504) , (6,726) Refunding bonds issued - - - - - 1,790,000 1,790 000 Premium on refunding bonds - - - - - 3,514 , 3 514 Payment to refunded debt escrow agent - (1,953,354) , (1,953,354) Sale of capital assets 25,655 443 466,504 492,602 Total other financing sources and (uses) _(10,295,769) 2,415,155 1,190,722 (579,557) 418,133 10,365,296 3,513,980 Net change in fund balances 555,377 527,708 1,022,888 196,619 1,205,223 2,574,244 6,082,059 Fund balances - beginning 5,114,328 1,117,106 1,631,738 6,228,577 5,756,650 25,984,080 45,832,479 Fund balances - ending $ 5,669,705 $ 1,644,814 $ 2,654,626 $ 6,425,196 $ 6,961,873 $ 28,558,324 $ 51,914,538 The notes in the financial statements are an integral part of this statement. 1 -23- Exhibit A Page 42- of A8$9 DESCHUTES COUNTY, OREGON RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN THE FUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2005 Net change in fund balances- total governmental funds $ 6,082,059 Source of financial resources that are not revenues in the current period Loan proceeds (3,876,382) Repayments from borrowers (2,446,767) Taxes previously reported on Statement of Operating Activities (9,104) Refunding proceeds (1,793,514) Disinvestment in LLC (229,099) (8,354,866) Use of financial resources that are not expenses in the current period Loans made 1,024,774 Repayments to lenders 4,158,024 Acquisition of capital assets 12,634,775 Bond issuance costs 130,918 Payment to refunding escrow 1,953,354 Revenues that do not provide current financial resources Accrued interest revenue 42,052 Notes receivable for LID assessments 358,278 Expenses that do not use current financial resources 19,901,845 400,330 Depreciation expense (3,193,499) Bad debt expense (208,579) Accrued interest expense (17,732) Amortization of deferred pension cost (486,346) Amortization of deferred refunding cost (109,225) Amortization of bond issuance cost (46,864) Amortization of bond premium / (discount) 53,969 Recognition of prepaid expenses (965) Increase in accrued compensated absences (84,248) Book value (cost less accumulated depreciation) of capital assets sold (523,036) (4,616,525) Internal service fund 1,889,853 Total adjustments - year ended June 30, 2005 9,220,637 Change in net assets of governmental activities - year ended June 30, 2005 $ 15,302,696 The notes to the financial statements are an integral part of this statement. -24- Exhibit 14- Page .45__of -2 DESCHUTES COUNTY, OREGON PROPRIETARY FUNDS STATEMENT OF NET ASSETS JUNE 30, 2005 ASSETS Current assets: Cash and cash equivalents Investments, plus accrued interest Accounts receivable Taxes receivable Prepaid items Total current assets Noncurrent assets: Capital assets: Land Construction in progress Land improvements Buildings and improvements Equipment and vehicles Total capital assets Other - Deferred financing costs Total assets LIABILITIES Current liabilities: Accounts payable Unearned revenues Interest payable Accrued claims payable Bonds and notes payable Total current liabilities Noncurrent liabilities Bonds and notes payable, less current portion Discount on bonds payable Premium on bonds payable Accrued compensated leave Accrued landfill closure and postclosure costs Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for capital projects Unrestricted Total net assets Enterprise Funds Fair & Expo Internal Solid Waste Center Total Service Funds $ 6,889,031 $ 1,336,715 $ 8,225,746 $ 2,894,155 11,806,872 2,289,247 14,096,119 4,960,191 544,948 10,097 555,045 81,028 - 76,761 76,761 - - 127,292 127,292 3,300 19,240,851 3,840,112 23,080,963 7,938,674 502,503 132,685 635,188 - 1,229,376 - 1,229,376 - 5,233,020 7,258,436 12,491,456 89,069 470,793 18,728,272 19,199,065 - 2,249,302 632,300 2,881,602 486,933 9,684,994 26,751,693 36,436,687 576,002 131,984 1,498,522 1,630,506 - 29,057,829 32,090,327 61,148,156 8,514,676 193,866 55,971 249,837 194,855 - 381,958 381,958 24,721 21,308 134,826 156,134 - - - - 1,669,054 124,720 1,160,331 1,285,051 - 339,894 1,733,086 2,072,980 1,888,630 5,842,352 24,469,014 30,311,366 - - (5,336) (5,336) - 44,747 700,684 745,431 _ - 107,524 97,588 205,112 501,680 9,376,317 - 9,376,317 - 15,370,940 25,261,950 40,632,890 501,680 15,710,834 26,995,036 42,705,870 2,390,310 8,455,618 3,909,240 12,364,858 346,665 5,634,900 2,467,696 8,102,596 - (743,526) (1,281,645) (2,025,171) 5,777,701 $ 13,346,995 $ 5,095,291 $ 18,442,286 $ 6,124,366 The notes to the financial statements are an integral part of this statement. -25- Exhibit 14- Page of a 8 DESCHUTES COUNTY, OREGON PROPRIETATY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure care costs Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grants Property taxes Investment earnings Rents Amortization of debt issuance costs Interest expense Interfund transfer of assets Gain (loss) on equipment disposition Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in Transfers out Change in net assets Total net assets - beginning Total net assets - ending Enterprise Funds Fair & Expo Internal Solid Waste Center Total Service Funds $ 7,043,815 $ 1,905,840 $ 8,949,655 $ 17,053,144 58,408 - 58,408 1,745 7,102,223 1,905,840 9,008,063 17,054,889 1,345,895 828,184 2,174,079 4,737,808 2,584,374 1,533,057 4,117,431 10,483,788 540,950 - 540,950 - 556,692 708,092 1,264,784 269,775 5,027,911 3,069,333 8,097,244 15,491,371 2,074,312 (1,163,493) 910,819 1,563,518 - 75,496 75,496 - - 1,904,154 1,904,154 - 376,633 51,123 427,756 154,564 - - - 9,036 (4,714) (131,285) (135,999) - (259,173) (1,005,055) (1,264,228) (3,385) (671) - (671) 21,212 (45,016) - (45,016) (256) 67,059 894,433 961,492 181,171 2,141,371 (269,060) 1,872,311 1,744,689 2,850,000 964,691 3,814,691 565,164 (2,850,000) (282,006) (3,132,006) (420,000) 2,141,371 413,625 2,554,996 1,889,853 11,205,624 4,681,666 15,887,290 4,234,513 $ 13,346,995 $ 5,095,291 $ 18,442,286 $ 6,124,366 The notes to the financial statements are an integral part of this statement. -26- Exhibit t-t Page .45 of ' DESCHUTES COUNTY, OREGON PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2005 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to employees Payments to suppliers Internal activity - payments from other funds Other receipts Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Grants Rents Sale of capital assets Interfund transfers in Net cash provided by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Loan proceeds Bond issuance costs Discounts on loans Principal paid on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of Investments Interest Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - beginning of year Balances - end of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense Change in assets and liabilities Receivables, net Prepaid expenses Accounts and other payables Net cash provided (used) by operating activities Enterprise Funds Fair & Expo Internal Solid Waste Center Total Service Funds $ 7,014,683 $ 2,050,365 $ 9,065,048 $ 1,805,600 (1,333,596) (818,136) (2,151,732) (4,694,904) (2,500,097) (1,517,830) (4,017,927) (11,337,828) - - - 15,228,119 58,408 - 58,408 2,145 3,239,398 (285,601) 2,953,797 1,003,132 - 1,913,434 1,913,434 - - 75,496 75,496 - - - 9,036 525 - 525 - - 300,000 300,000 145,164 525 2,288,930 2,289,455 154,200 (1,513,745) (35,718) (1,549,463) (198,992) 2,786,892 2,786,892 - (53,056) (53,056) - (5,336) (5,336) - (225,053) (974,430) (1,199,483) (81,463) (261,789) (1,031,997) (1,293,786) (3,384) (2,000,587) 686,355 (1,314,232) (283,839) (2,464,543) 374,815 (2,089,728) _ (850,392) 7,739,425 $ 6,889,033 $ (1,798,506) (4,263,049) (1,188,201) 43,904 418,719 152,582 (1,754,602) (3,844,330) (1,035,619) 935,082 84,690 (162,126) 401,633 8,141,058 3,056,281 1,336,715 $ 8,225,748 $ 2,894,155 $ 2,074,308 $ (1,163,491) $ 910,817 $ 1,563,918 556,692 708,092 1,264,784 269,775 (29,132) 12,979 (16,153) (48,108) (15,790) (15,790) (3,300) 637,530 172,609 810,139 (779,153) $ 3,239,398 $ (285,601) $ 2,953,797 $ 1,003,132 The notes to the financial statements are an integral part of this statement. 1 -27- Exhibit A Page -A(s of ,g, $9. DESCHUTES COUNTY, OREGON FIDUCIARY FUNDS STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES JUNE 30, 2005 ASSETS Cash and cash equivalents Investments, plus accrued interest Accounts receivable Total assets LIABILITIES Accounts payable Due to other governments Due to others Total liabilities NET ASSETS The notes to the financial statements are an integral part of this statement. -28- Exhibit a- $ 4,178,630 6,977,878 1,701 11,158,209 14,953 2,322,152 8,821,104 11,158,209 f DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity Deschutes County is a municipal corporation governed by three Commissioners, elected at-large. The accompanying financial statements present the activities of Deschutes County (the County), and its seven (7) component units, entities for which the County is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the County's operations. Following is a brief review of each component unit included within the reporting entity. Deschutes County Extension and 4-H Service District - furnishes support staff and a program coordinator for Oregon State University Extension Service. Its governing body is the Deschutes County Board of Commissioners. The financial accountability for the District is the responsibility of the County. Deschutes County 911 Service District - operates the County 9-1-1 call center. Its governing body is the Deschutes County Board of Commissioners. The financial accountability for the District is the responsibility of the County. Black Butte Ranch County Service District - Provides police services to Black Butte Ranch, Oregon. Its governing body is the Deschutes County Board of Commissioners. The financial accountability for the District is the responsibility of the County. ' Sunriver Service District - Provides police and fire services to Sunriver, Oregon. Its governing body is the Deschutes County Board of Commissioners. The financial accountability for the District is the responsibility of the County. Bend Library County Service District, Redmond Library County Service District, Sunriver Library County Service District - Each library county service district was established for the purpose of constructing a library and repaying the general obligation bonds issued to finance the cost of construction. Each library district's governing body is the Deschutes County Board of Commissioners. The financial accountability for each district is the responsibility of the County. These component units described above have been included in these financial statements. Component units' individual audited financial statements are also issued and are available in the Deschutes County Finance Department. There are other districts within the County that have not been included as component units of the County. The Board of County Commissioners appoints the boards of special road districts and vector districts; however, the County Commission does not exercise any administrative or financial control. These districts are autonomous Oregon municipal corporations and are not considered component units of Deschutes County. B. Government-wide and fund financial statements The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of Activities) report information on all non-fiduciary activities of the County and its component units. The effect of interfund activity has been removed from these statements, except where necessary to account for the cost of a program. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. -29- Exhibit A Page ) DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. C. Measurement focus, basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized in the year for which they are levied. Grants and similar items are recognized as revenue if all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both measurable and available. Revenues are considered to be available if they are collected during the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service, compensated absences, claims and judgments expenditures are recorded at the time such payment is due. Fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All fiduciary funds are agency funds. The County has determined the following funds as major governmental funds: General Fund. The financial resources of the general government are accounted for in the General Fund, except those required to be accounted for in another fund. Sheriffs Office. The financial resources of the Sheriffs Office are accounted for in the Deschutes County Sheriffs Fund. This includes the administration, investigations, patrol, corrections and search and rescue activities of the Sheriff's Office. Mental Health. The financial resources of the County's mental health treatment programs for acute care, children and families, alcohol and drug and developmental disabilities. Road. The financial resources of the County's Road Department used for the building, repair and maintenance of the County's roads, bridges, culverts, street lighting and drainage. Project Development. The financial resources related to the County's project development activities. The County has determined that both of its enterprise activities are major. -30- Exhibit /4- Page -A-5_ of aka DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Solid Waste accounts for the operations of the County's sanitary landfill and transfer station sites. Fair & Expo Center accounts for the operations of the County's Fair & Expo Center, including the annual county fair. Additionally, the County reports the following fund types: Internal service funds account for building, administrative, finance, legal, personnel, information technology and insurance services provided to other County departments on a cost reimbursement basis. Agency funds are used for tracking various activities including the accumulation and distribution of property taxes; resources of taxing districts, escrow for contractor retainage and developers, funds prior to adjudication; distribution of the State of Oregon's common school funds, inter-governmental law enforcement activities, justice court; and various other collection and escrow agent activities. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The County has elected not to follow subsequent private-sector guidance. ' As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the internal service funds and various other functions of the County. Elimination of these charges would distort the costs reported for the various ' functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. ' Operating revenues and expenses are reported separately from non-operating items in the Proprietary Funds. Operating revenues and expenses generally result from providing services in connection with a ' proprietary fund's principal on-going operations. The principal operating revenues of Solid Waste and the Fair & Expo Center are charges to customers for services. Operating expenses for the enterprise funds and internal service funds include the cost of providing services, administrative expenses and depreciation on ' capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. D. Budget Policy Budgets are prepared on the modified accrual basis for all funds. Except for the Fiduciary Funds, which account for "pass-through" transactions, the County adopts annual budgets for each of its funds as required by state law. The resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. Total personal services, materials and services, debt service, capital outlay and ' other expenditures by department for each fund are the levels of control established by the resolution. The County's published budget contains more specific detailed information for the above mentioned expenditures categories. Unexpected additional resources may be added to the budget through the use of a supplemental -31- Exhibit 4 of DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 budget and appropriation resolution. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval of the Board of County Commissioners. Appropriations lapse at year-end. E. Assets, liabilities and net assets or equity 1. Cash and Cash equivalents and Investments Cash and cash equivalents include amounts held as demand deposits and by the Local Government Investment Pool. The cash balances of substantially all funds are pooled and invested by the County Treasurer for the purpose of increasing earnings through investment activities. Investments are reported at fair value as of June 30, 2005, based on market prices and include accrued interest. Earnings on the pooled monies are apportioned and credited to the funds monthly, based on the average daily balances of each participating fund. 2. Receivables and payables All trade and property tax receivables are shown net of an allowance for uncollectibles. Notes receivable in governmental funds include loans that are not expected or scheduled to be collected in the subsequent year. The County is responsible for the assessment, collection and apportionment of property taxes for all jurisdictions within the County. Taxes are levied as of July 1 based on assessed values as of January 1. Property tax payments are due in three equal installments, on November 15, February 15 and May 15. A discount of 3% is available if taxes are paid in full by November 15 and a discount of 2% on the unpaid balance is available if taxes are paid in full by February 15. Property taxes become a lien on the property on July 1. 3. Inventories, prepaids and other assets Inventories are valued at cost using the first in/first out (FIFO) method. The only material inventories of the County are accounted for in the Road Fund. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid items. Other assets include prepaid pension costs, deferred debt issuance and refunding costs. 4. Restricted assets In accordance with the terms and agreements of some long-term financings, certain assets are restricted for future debt service payments. The County first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. 5. Capital assets Capital assets, which include property, plant, equipment and infrastructure (e.g. roads, bridges, sidewalks and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide statement of net assets. Capital assets are defined by the County as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at their fair value at the date of donation. General infrastructure assets, consisting primarily of roads and bridges, acquired prior to July 1, 2002, have not yet been reported. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Exhibit A- -32- Page $L_ of a~Sg DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 ■ Property, plant and equipment is depreciated using the straight-line method over the following estimated useful lives: ■ Assets Years Buildings 30-60 ■ Building improvements 10-15 Improvements other than buildings 10-30 Equipment and vehicles 3-20 Infrastructure 20-50 ' The County has several active construction projects as of June 30, 2005. For one of these projects, the renovation of the historic courthouse, the County entered into a construction contract of $1,205,505. As of ■ June 30, 2005, $841,164 had been expended with $364,341 commitment remaining. 6. Compensated absences ■ It is Deschutes County's policy to permit employees to accumulate earned but unused vacation, time management (a leave with pay program, including sick, vacation, family emergency and compensatory time) and sick leave. A liability for the vested portion of such leave is reported in the proprietary and government- ■ wide financial statements. Except in the two cases as noted below, no liability for unpaid accumulated sick leave is recorded because the County does not pay sick leave when employees separate from service with the County. Exceptions to non-payment of sick leave are: 1) Non-represented employees receive one-half of ■ their sick leave earned through June 30, 1994, and 2) Employees who are members of the Public Works union receive one-half of their sick leave upon separation following at least five years of service. A liability for the vested portion of vacation, sick leave and time management is reported in the proprietary and the government-wide financial statements. ' 7. Long-term obligations In the government-wide statements and the proprietary funds statements, long-term debt and other long- term obligations are reported as liabilities in the applicable governmental activities, business-type activities and proprietary fund type statement of net assets. Bond premiums and issuance costs are deferred and amortized over the life of the bonds using the straight-line method. ■ 8. Fund equity In the fund statements, governmental funds report reservations of fund balance for any amounts that are not ■ available for appropriation or are legally restricted by outside parties for use for a specific purpose. ■ II - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Each department of the County submits requests for appropriations to the Budget Officer, who is appointed ■ by the Board of County Commissioners. A proposed budget is prepared by fund, category and line item activity. The proposed budget includes information on the past three years and estimated resources and requested appropriations for the ensuing year. ' The proposed budget is presented by the Budget Officer to the Budget Committee. The Budget Committee holds public meetings and may make changes to the proposed budget. The Budget Committee submits the ■ budget for adoption to the governing body of the County. The governing body announces a public hearing, and after considering matters discussed, may make changes to the budget prior to its adoption. Such changes cannot exceed 10% of the appropriations of the approved budget or a change in the amount of the ■ -33- Exhibit A Page S a of _an i DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 ad valorem taxes without re-publication of the budget and another public hearing. , After the budget is adopted, changes in appropriations are sometimes necessary. The governing body may , make additional appropriations to 1) expend new grant revenues received during the fiscal year, 2) adopt a supplemental budget for occurrences or needs not foreseen at the time the budget was adopted and 3) approve appropriation transfers. It is, however, illegal to overspend an appropriation. ' In accordance with state statutes, appropriations are approved before the beginning of the fiscal year and terminate June 30 of the year of appropriation. Encumbrances are not reported in the financial statements. B. Excess of expenditures over appropriations ' For the year ended June 30, 2005, expenditures exceeded appropriations by category (the legal level of budgetary control) as follows: ' Personnel Solid Waste Operations Materials & Services Community Development Original Over- ' Budget Final Budget Actual expenditure $ 1,327,043 $ 1,331,543 $ 1,333,596 $ (2,053) $ 1,090,200 $ 1,202,338 $ 1,204,986 $ (2,648) , C. Deficit Fund Equity The Administrative Services Internal Service fund has negative fund balances of $7,910. This deficit is due to the recognition of compensated absence expense which will be paid out in future years. At such time payment is necessary, funds will be available to meet this obligation. III. DETAILED NOTES ON ALL FUNDS A. Deposits and Investments Deposits Custodial Credit Risk. Custodial credit risk is the risk that in the event of a bank failure, the government's deposits may not be returned to it. The County's investment policy, in compliance with Oregon Revised Statutes, Chapter 295, requires that the County's deposits with various financial institutions be covered by Federal Depository Insurance. To provide the additional protection required by ORS 295, the County obtained certificates of participation from collateral pool managers. Securities in the pledging bank's name having a value of not less than 25% of the amount of the certificates. These securities are held by a custodian for the benefit of the County. Balances in excess of the FDIC insurance and 25% of the certificate are considered exposed to custodial risk. As of June 30, 2005, $8,385,306 of the County's bank balance of $35,216,304 was exposed to custodial credit risk. Exhibit 4 -34- Page of a$c~ DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Investments As of June 30, 2005, the County had the following investments and maturities: Investment Type Fair Value U.S. agencies Commercial paper State investment pool $ 39,424,072 7,987,344 Investment Maturities (in years) Less than 18 mths 18-24 mths $ 37,437,192 7,987,344 19, 690, 231 19,690,231 $ 1,986,880 Total $ 67,101,647 65,114,767 $ 1,986,880 Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. As a means of limiting its exposure to fair value losses arising from rising interest rates, the County investment policy requires that a minimum of 80% of the County's investment portfolio have maturities of 18 months or less. The remaining 20% of the County's investments must have maturities of 24 months or less. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligation. Oregon Revised Statutes, Chapter 294, authorizes the County to invest in obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers' acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds and obligations of states and municipalities. The County's investment policy has been approved by the County Commission and specifies the County's investment objectives, required diversification, certain limitations and reporting requirements. These requirements limit investments in commercial paper and corporate bonds to 20% of the total portfolio and 5% in any one corporation, subsidiary or affiliate. Commercial paper and corporate bonds must also be in the top two ratings issued by nationally recognized statistical rating organizations (NRSROs). As of June 30, 2005, the County's investments in commercial paper were rated Al by Standard & Poor's, F-1 by Fitch Ratings and P-1 by Moody's Investors Service. The County's investments in U.S. Government agencies is limited to 75% of the portfolio and 50% in any single government sponsored enterprise. The County's investment in the Oregon State Treasurer's investment pool is not rated and is treated as a cash equivalent on the Statement of Net Assets. Custodial Credit Risk. Custodial Credit Risk is the risk that, in the event of the failure of the counterparty to a transaction, the government will not be able to recover the value of an investment or collateral securities in the possession of an outside party. The County's investment policy provides that broker/dealers and financial institutions meet certain qualifications, which are reviewed annually. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The County's investment policy provides that the maximum that may be invested in any one issuer, as a percentage of the fund's total investments, is 100% for US Treasury, 75% for US Government agencies with 50% of this amount in an single government sponsored enterprise, 100% in the State of Oregon Investment Pool or the maximum imposed by state statute, 25% in Certificates of Deposit with 30% of this amount in any single qualified financial institution, 25% for Banker's Acceptances with 30% of this amount in any single qualified financial institution, 20% for Commercial paper and Corporate notes with 5% of this amount in any one corporation, subsidiaries or affiliates, 25% for State -35- Exhibit A Page SA_ of _C 9,n DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 and Local Government Securities, 25% for Repurchase Agreements with 10% of this amount in any single qualified financial institution. On June 30, 2005, the County did not hold investment with any one issuer that exceeded these limits. Foreign Currency Risk. The County's investment policy prohibits investments that are not U.S. dollar- denominated; therefore the County is not exposed to this risk. B. Receivables Receivables as of year-end for the major funds and the nonmajor, internal service and fiduciary funds, in the aggregate, including the applicable allowances for uncollectible accounts are as follows: Property taxes Transient room taxes Accounts Notes and contracts Fair & Nonmajor Mental Project Expo and Other General Sheriff Health Road Development Solid Waste Center Funds Total $ 569,612 $ 470,229 $ - $ - $ - $ - $ 76,761 $ 386,503 $ 1,503,105 - - - - - - 317,120 317,120 207,243 91,509 224,502 151,057 - 544,948 10,097 1,712,498 2,941,854 - - 81,023 - 3,359,566 - - 3,473,524 6,914,113 11 11 Total Unavailable Total Unearned and Property Contracts of Special Total Not yet Deferred Taxes Loans Sale Assessments Unavailable Earned Revenues $ 455,689 $ - $ - $ - $ 455,689 $ 283,553 $ 739,242 376,183 - - - 376,183 - 376,183 - 81,023 - - 81,023 - 81,023 - - 3,327,804 - 3,327,804 - 3,327,804 309,203 2,064,545 617,775 1,149,783 4,141,306 24,270 4,165,576 $ 1,141,075 $ 2,145,568 $ 3,945,579 $ 1,149,783 $ 8,382,005 $ 3® $ 8® -36- $ 776,855 $ 561,738 $ 305,525 $ 151,057 $ 3,359,566 $ 544,948 $ 86,858 $ 5,889,645 $ 11,676,192 11 Notes and contracts receivable are shown net of a $358,579 allowance for uncollectible accounts. The unearned and deferred revenues reported on the governmental funds balance sheet are either (a) revenues that are earned but are not available to liquidate liabilities of the current period or (b) amounts that have been received but not yet earned. At the end of the current fiscal year, these two components were as follows: General Sheriff Mental health Project development Nonmajor funds Total Unearned and Deferred Revenues Exhibit A Page 65 of a`i;~ DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 C. Other assets Other assets include both current and non-current assets. The Prepaid Pension Cost and the Deferred Cost of Refunded Debt will be amortized on a straight-line basis over the period benefited. Governmental Business-Type Activities Activities Total ' Other Assets - current Prepaid items $ 28,365 $ 127,292 $ 155,657 Other Assets - Lona-Term Prepaid Pension Cost Series 2002 4,706,445 - ' Series 2004 6,479,514 Total Prepaid Pension Cost 11,185,959 = 11,185,959 Deferred Cost of Issuance Series 2002 Pension Bond 95,302 - Series 2003 Full Faith & Credit 557,786 134,184 Series 2004 Pension Bond 128,592 - ' Series 2005 Full Faith & Credit 65,888 53,056 Series 2005 LID 11,750 - Total Deferred Cost of Issuance 859,318 187,240 1,046,558 Deferred Cost of Refunded Debt Refunding Series 2002 ' Refunding 532,433 1,364,884 Cost of Issuance 41,586 78,382 Bend Library, Series 2003 ' Refunding 333,305 - Cost of Issuance 69,695 CDD Refunding Series, 2004 Refunding 130,322 - ' Cost of Issuance 48,436 Total Deferred Cost of Refunded Debt 1,155,777 1,443,266 2,599,043 ' Total Other Assets $ 13,229,419 $ 1,757,798 $ 14,987,217 37 ' - - Exhibit 1=}- Page 5 (4 of oZ 8 DESCHUTES COUNTY, OREGON (1,757,329) (447,577) - (2,204,906) (2,682,412) (564,676) - (3,247,088) (1,765,984) (252,531) 276,566 (1,741,949) (6,205,725) (1,264,784) 276,566 (7,193,943) 33,536,909 1,111,405 (76,192) 34,572,122 $ 36,774,547 $ 1,464,276 $ (1,802,136) $ 36,436,687 -38- NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 D. Capital assets Capital asset activity for the year ended June 30, 2005, was as follows: Primary Government Capital assets, not being depreciated: Beginning Balance Increases Decreases Ending Balance Land $ 6,284,101 $ 2,312,583 $ (320,000) $ 8 276 684 Construction in progress 3,106,944 1,435,240 (3,044,697) , , 1,497,487 Total capital assets, not being depreciated 9,391,045 3,747,823 (3,364,697) 9,774,171 Capital assets, being depreciated: Buildings and improvements 54,562,404 3,680,182 (466,263) 57,776,323 Improvements other than buildings 3,176,922 842,106 - 4,019,028 Equipment and vehicles 19,734,851 4,070,113 (1,365,979) 22,438,985 Infrastructure 5,715,006 3,892,172 - 9,607,178 Total capital assets, being depreciated 83,189,183 12,484,573 (1,832,242) 93,841,514 Less accumulated depreciation for: Buildings and improvements Improvements other than buildings Equipment and vehicles Infrastructure Total accumlated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Business-tyi)e activities Capital assets, not being depreciated: (7,670,461) (1,181,217) 12,011 (8,839,668) (863,439) (124,789) - (988,228) (12,806,222) (1,788,703) 1,290,037 (13,304,888) (257,518) (374,783) - (632,301) (21,597,640) (3,469,492) 1,302,048 (23,765,085) 61,591,543 9,015,081 (530,194) 70,076,429 $ 70,982,588 $ 12,762,904 $ (3,894,891) $ 79,850,600 Land $ 336,650 $ 298,538 $ $ 635,188 Construction in progress 2,900,988 54,333 (1,725,945) 1,229,376 Total capital assets, not being depreciated 3,237,638 352,871 (1,725,945) 1,864,564 Capital assets, being depreciated: Buildings and improvements 21,403,971 - - 21,403,971 Improvements other than buildings 13,959,912 1,778,632 - 15,738,544 Equipment and vehicles 4,378,751 597,557 (352,758) 4,623,550 Total capital assets, being depreciated 39,742,634 2,376,189 (352,758) 41,766,065 Less accumulated depreciation for: Buildings and improvements Improvements other than buildings Equipment and vehicles Total accumlated depreciation Total capital assets, being depreciated, net Business-type activities capital assets, net Exhibit A Page 5-g of aqq DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental activities: General government $ 21,892 General services 1,503,360 County roads 750,868 Public protection 841,002 Health and welfare 69,855 Capital Assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 269,775 Accumulated depreciation for interfund transfers 12,740 Total depreciation expense - governmental activities $ 3,469,492 Business-type activities: Solid waste $ 556,692 Fair & Expo Center 708,092 Total depreciation expense - business-type activities $ 1,264,784 E. Interfund Activity Interfund Transfers: Transfers In: Non-major Internal Mental Project Fair & Expo and Other Service General Sheriff Health Development Center Fund Funds Total Transfers Out: General Fund $ - $ 570,348 $ 940,722 $ - $ 300,000 $ 8,496,216 $ 145,164 $ 10,452 450 Sheriff - - - - Mental Health - - - 150 000 - - 260,500 , - 260,500 , Road - - - 150,000 - - Project Development - - - - - - 870,000 1,039,956 - 870,000 - 1,039 956 Internal Service - - - - - , 420,000 420 000 Non-major Governmental 156,681 2,079,652 400,000 150,000 382,685 3,215,125 , - 6,384,143 Total $ 156,681 $ 2,650,000 $ 1,340,722 $ 300,000 $ 682,685 $ 13,881,797 $ 565,164 $ 19,577,049 Interfund transfers are utilized for the following purposes: General fund transfers to certain special revenue funds requiring additional operating revenues; operating funds transfer to debt service funds to meet annual debt service requirements; and transient room taxes are transferred to the Sheriffs fund to support operations. The purpose of the interfund loan is to provide working capital for the development of the Newberry Neighborhood. Proceeds from the sales of the developed parcels will be used to repay the interfund loan. -39- Exhibit Page ~ of DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 F. Long-Term Obligations Operating Leases - County as Lessee The County leases buildings and office facilities and equipment under noncancelable operating leases. The total expended for such leases for the year ended June 30, 2005, was approximately $230,000. The future minimum lease payments for these leases are as follow: Fiscal Year Ending June 30. Amount 2006 $189,578 2007 88,603 2008 50,547 2009 10,202 2010 2.724 Total Operating Leases - County as Lessor The County received $839,355 in lease rental income for the year ended June 30, 2005. The County is expected to receive $5.8 million in rental income over the next 10 years under non-cancelable leases. These leases are cancelable if annual appropriations are not included in the lessee's annual appropriation resolution. Capital Leases The County has entered into a lease agreement for acquisition of personal property. The lease is treated as a capital lease; however, the lease is cancelable if annual appropriations are not included in the County's annual appropriation resolution. Amortization expense on the assets under capital lease is included with depreciation expense. The asset acquired through a capital lease is as follows: Governmental Activities Asset: Total Equipment and vehicles $114,546 Less: Accumulated Amortization 17.182 The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2005, are as follows: Fiscal Year Ending June 30, 2006 2007 Total minimum lease payments Less: Amount representing interest on future payments Present value of minimum lease payments Governmental Activities $ 22,282 22.282 44,564 1,210 L-44 -40- Exhibit Page _13a of 2.8 DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Bonds and Certificates of Participation For both governmental and business-type activities, the County has issued General Obligation Bonds, Certificates of Participation (COPS) and Full Faith & Credit Obligations all of which were issued to provide funds for the acquisition and construction of major capital facilities, acquire personal property and fund the pension liability. The County also issues special assessment debt to provide funds for the construction of streets in existing residential areas. These bonds will be repaid from amounts levied against the property owners benefited by these improvements. In the event that a deficiency exists because of unpaid or delinquent special assessments at the time a debt service payment is due, the County must provide resources to cover the deficiency until other resources, for example, foreclosure proceeds, are received. General obligation bonds are direct obligations and pledge the full faith and credit of the County. These bonds generally are issued as 20-30 year serial bonds with increasing amounts of principal maturing each year. General obligation bonds currently outstanding are as follows: Purpose Interest Rates Amount Governmental activities 4.49-7.02% $ 44,156,166 Governmental activities - refunding 2.96-4.43% 22,340,000 Business-type activities 4.49-5.47% 10,853,415 Business-type activities - refunding 3.87% 20.230.000 $ 97,579,581 Certificates of Participation currently outstanding are as follow: Purpose Interest Rates Amount Governmental activities 5.01-6.40% $ 6,275,000 Governmental activities - refunding 4.62-6.45% 1,085.000 7.360.000 Limited Tax Improvement Bonds currently o utstanding are as follows: Purpose Interest Rates Amount Governmental activities 4.00-5.95% $ 1.137.498 -41- Exhibit & Page fo0 of DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Changes in Long-Term Liabilities Changes in long-term obligations for the year ended June 30, 2005, are as follows: Governmental activities: Claims Internal service funds Certificates of participation Pension obligation bonds Full faith & credit obligations Unamortized pr-em / (disc) General obligation bonds Unamortized premiums Loans Govemmental funds Limited tax improvement bonds Capital leases Govemmental Compensated absences Govemmental funds Internal senbce funds Business type activities: Full faith & credit obligations Unamortized prem / (disc) General obligation bonds Unamortized premiums Compensated absences Landfill closure and postclosure Loans Due Within July 1, 2004 Increases Decreases June 30, 2005 One Year $ 2,359,414 $ 7,343,958 $ (8,034,318)' $ 9,760,000 - (2,400,000) 12,485, 979 - (25, 583) 26, 094, 766 5,303,108 (626, 289) 207,490 (3,212) (7,475) 25,219,084 - (1,954,899) 464,943 - (46,495) 698,230 - (298,230) 1,132,202 370,000 (364,704) 1,669,054 $ 1,422,565 7,360,000 630,000 12,460,396 35,966 30,771,585 792,423 196,803 - 23, 264,185 2,083,150 418,448 - 400,000 50,000 1,137,498 70,000 341,674 - (298, 320) 43,354 21,161 4,608,417 3,725,859 (3,641,617) 4,692,659 3,842,007 558,094 384,602 (441,016) 501,680 405,419 $ 83, 930, 293 $ 17,124, 315 $ (18,138,94% $ 82, 915, 662 $ 9,352,691 $ 6,190,234 $ 2,786,892 $ (123,711) $ 8,853,415 $ 197,577 47,117 (5,336) (1,624) 40,157 - 23,190,000 - (960,000) 22,230,000 1,075,000 763,569 - (63, 631) 699,938 - 178,170 174,791 (147, 849) 205,112 172,989 8,835,367 540,950 - 9,376,317 - 628,774 - (115,772) 513,002 12,474 $ 39,833,231 3,497,297 $ (1,412,587) $ 41,917,941 $ 1,458,040 Compensated absences have been liquidated by the governmental and enterprise funds for which the employees who earned the compensated absences were assigned. F1 Ll n Exhibit /k- Page & ( of AZO( -42- DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Debt Service Requirements Debt service requirements on Certificates of Participation, Limited Tax Improvement Bonds and Bonds and Notes at June 30, 2005, are as follows: Year Ending June 30 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 2006 2007 2008 2009 2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 Governmental Activities COPs Ltd Tax Improvement Bonds & Notes Principal Interest Principal Interest Principal Interest $ 630,000 $ 358,922 $ 70,000 $ 54,960 $ 2,961,539 $ 2,921,843 bbo,uuu 328,152 88,000 47,486 3,147,138 2,763,810 685,000 295,713 110,000 43,765 3,314,163 2,676,146 775,000 259,763 137,000 38,857 3,491,021 2,591,406 420,000 226,475 439,498 30,490 3,701,669 2,502,909 2,430,000 814,308 293,000 38,720 17,622,154 10,372,552 1,765,000 181,685 - - 7,386,632 8,388,920 - - - - 11,379, 794 5,342,919 ' - - - 9,715,580 2,132,968 ' - - - 4,176, 475 297,598 $ 7,360,000 $ 2,465, 018 $ 1,137, 498 $ 254,278 $ 66, 896,165 $ 39, 991, 071 Business Type Activities COPs Ltd Tax Improvement Bonds & Notes Principal Interest Principal Interest Principal Interest $ - $ - $ - $ - $1,285,051.00 $1,364,764.00 ' - - - 1,446, 564 1,252,422 ' - - - 1,575,177 1,172,827 1,713,342 1,114,152 ' - - - 1,844,242 1,057,041 ' - - - 11,711,087 4,059,083 ' - - - 7,169,671 1,552,738 ' - - - 2,226,085 865,110 ' - - - 1,551,673 432,546 - - - - 1,073,525 76,495 $ $ - $ - $ - $ 31,596,417 $ 12, 947,178 Advance Refundina of Debt ' On September 28, 2004, full faith and credit bonds were issued to refund portions of an earlier issue used to finance the building of the County's Community Development Building. Proceeds from the new issue were placed in an irrevocable trust that is to be used to service the future debt requirements of the defeased debt. ' This refunding resulted in an economic gain as well as a savings from refunding. The economic gain realized in this refunding was $106,720 and the savings from the refunding was as follows: ' Cash flow requirements to service defeased debt $2,505,320 Less: County funds used to reduce debt 215,000 Cash flow requirements for new debt 2,123,552 Net savings from refunding $ 166.798 -43- Exhibit 14 Page __U- of a-~ DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 In prior years, the County defeased certain general obligation bonds and Certificates of Participation (COPs) by placing the proceeds of a new general obligation bond, COPs and Full Faith & Credit Obligations in irrevocable trusts to provide for all future debt service payments on the old general obligation bond and the COPs. Accordingly, the trust account assets and the liability for the defeased general obligation bonds and COPs are not included in the County's financial statements. At June 30, 2005, $39,650,000 of bonds and $2,860,000 of COPs outstanding are considered defeased, which includes debt defeased during this current year. G. Segment Information The County maintains two enterprise funds. The Solid Waste Fund is used to account for the operations of the County's landfill at Knott Road and 27th Street and transfer stations located throughout the County. The accumulation of resources that will be required for the closure and post closure costs associated with the sanitary landfill are also accounted for in the Solid Waste Fund. The Fair & Expo Center Funds account for the operations of the County's Fairgrounds and Expo facility including the annual county fair. Included in this fund is the general obligation bond, issued in 1996, to finance the construction of the facility. IV. OTHER INFORMATION -44- A. Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to$ and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County purchases commercial insurance for property coverage, fidelity bonding, catastrophic workers' compensation claims and stop loss on its medical/dental risks. It self-insures against losses for general liability, most workers' compensation, medical and dental benefits, unemployment benefits and other risks. All funds of the County, as well as two county service districts (Deschutes County 911 and Extension 4-H), participate in the County's self-insurance program. The County self-insures its general liability, vehicle, workers' compensation, unemployment and medical/dental risks. Neither Black Butte Ranch nor Sunriver Service District participates and Deschutes County 911 County Service District's participation is limited to unemployment benefits and medical/dental. The third party insurance coverage obtained by the county service districts not covered by the County's self-insurance program had no significant reductions in the levels of insurance coverage in the past year. Settled claims have not exceeded insurance coverage in any of the past three fiscal years. The County estimates liability for incurred losses for reported and unreported claims for general and vehicle/fleet liability, workers' compensation and employee medical coverage. Workers' compensation, general and vehicle/fleet liability estimates are primarily based on individual case estimates for reported claims and through historical data for unreported claims as determined by the County's Risk Management department. Liabilities are based on estimated ultimate cost of settling claims. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims is not an exact amount and accordingly claims are reevaluated periodically to consider the effects of inflation, recent claims settlement trends and other economic and social factors. Each fund makes payments to the internal service insurance funds, based on the estimated need to pay prior and current claims and to fund a reserve for losses. The net assets, as of June 30, 2005, of the Insurance Fund (all insurance programs other than medical/dental) are reported at $925,060 and of the Health Benefits Trust Fund (medical/dental) at $3,762,630. Exhibit _ of _ J Page &3 DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Changes in the Insurance Funds' claim liabilities are as follows: Claims payable, June 30, 2003 FY 03-04 claims expense FY 03-04 claims paid Claims payable, June 30, 2004 FY 04-05 claims expense FY 04-05 claims paid Claims payable, June 30, 2005 Health Insurance Benefits Fund Trust Fund Total $ 1,327,847 $ 733,504 $ 2,061,351 1,039,074 6,333,285 7,372,359 715,036 6,359,260 7,074,296 1,651,885 707,529 2,359,414 466,535 6,877,423 7,343,958 1,258,933 6,775,385 8,034,318 $ 859,487 $ 809,567 $ 1,669,054 B. Commitments and contingent liabilities The County is contingently liable with respect to lawsuits and other claims incidental to the ordinary course of its operations. Claims covered by the County's self-insurance are reviewed and losses are accrued based on the judgment of County management. According to County management, based on advice of legal counsel with respect to such litigation and claims, ultimate disposition of these matters will not have a material adverse effect on the financial position or results of County operations. C. Employee pension plans Plan Description: The County contributes to the Oregon Public Employees Retirement System (PERS), an agent multiple- employer defined benefit plan. PERS acts as a common investment and administrative agent for political subdivisions in Oregon. All full-time employees are eligible to participate in the system after six months of employment. Part-time and temporary employees are covered after 600 hours of employment. Employees who retire after 30 years of creditable service or after reaching age 58 are entitled to a retirement benefit, payable monthly for life, equal to 1.67 percent of their final average salary for each year of credited service. Final average monthly salary is based upon either the three calendar years out of the last ten calendar years of employment during which the highest salaries were earned or the last 36 calendar months of membership, whichever is larger. Benefits fully vest upon reaching five years of service. Vested employees with less than 30 years of service will receive reduced benefits if retirement occurs prior to age 58 (age 60 if hired after January 1, 1996). PERS also provides death and disability benefits. Benefits are established by state statute. The Oregon Public Employees Retirement System issues a publicly available financial report that includes financial statements and required supplementary information for PERS. That report may be obtained by written request to PERS, P.O. Box 23700, Tigard, OR 97281-3700. -45- Exhibit -Pr Page, 4 of _2A9 DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Funding Policy: All Oregon PERS members are required to contribute 6% of their annual covered salary, which is paid by the County. Additionally, the County is required to contribute at an actuarially determined rate. The effective rate at June 30, 2005, for Tier One and Tier Two employees was 5.35% of annual covered payroll. Employees entering the system subsequent to August 2003 are covered under the Oregon Public Service Retirement Plan (OPSRP). The effective rate for OPSRP employees is 8.04% for General Service Employees and 11.65% for Police and Fire Employees. The contribution requirements of plan members and the County are established by state statute and may be amended by the PERS Retirement Board. Annual Pension Cost: For fiscal year 2004-2005, the County's annual pension cost was $4,255,696. Projected benefits are determined for all members and the associated liabilities are spread in a manner that produces level annual costs as a percent of pay in each year from the age at entry until the assumed age at exit from active membership. The cost allocated to the current year is the normal cost. The actuarial liability for active members is calculated as the portion of the total cost of benefits allocated to prior years. The actuarial liability for members currently receiving benefits and for members entitled to deferred benefits, is equal to the present value of the benefits expected to be paid. The excess of the total actuarial liability over the value of the assets is called the unfunded actuarial liability. Employer contributions are determined by adding the normal cost, less the member contribution rate, and a thirty-year amortization of the unfunded actuarial liability as a level percentage of projected annual payroll. The amortization period is closed. Significant economic assumptions used in the December 31, 2003, actuarial valuation include: (a) rate of return on investment of present and future assets of 8% per annum compounded annually; (b) projected salary increases at 4.25% per year compounded annually; (c) increases due to promotions and longevity that vary by age and service; (d) pre and post-mortality life expectancies of employees, based upon several mortality tables; (e) rates of withdrawal from active service before retirement for reasons other than death, rates of disabilities and expected retirement ages developed on the basis of actual plan experiences; and (f) consumer price inflation of 3.25% per year. The fair market value of all PERS assets, reduced by the sum of all member contribution accounts (Member Reserves) and the value of all benefits currently being paid (Benefit Reserves), is allocated to all participating employers in proportion to the funds in each employer's account (Employers Reserve). Annual pension costs (APC) for the years ending June 30, 2005, 2004 and 2003 are as follows: Employer Contributions Year Annual Percentage Net Ended Pension of APC Pension June 30 Cost APC Contributed Obligation 2005 $ 4,255,696 100% $ - 2004 $10,872,611 100% $ - 2003 $ 5,840,831 100% $ - -46- Exhibit /4- Page 5 of a~q DESCHUTES COUNTY, OREGON ' NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 t The following table presents a schedule of funding progress for the County's Defined Benefit Pension Plan: Actuarial Actuarial Unfunded Valuation Value of Actuarial Actuarial Funded Covered UAL/ Date Assets Liability Liability Ratio Payroll Payroll 1999 $ 98,676,797 $ 96,434,067 $ (2,242,730) 102% $ 26,286,203 -9% 2001 183,013,313 156,292,337 (26,720,976) 117% 29,981,104 -89% 2003 192,485,114 193,674,362 1,189,248 99% 32,956,938 4% D. Post-employment benefits In addition to pension benefits described in Note IV.C., the County provides post-employment benefit options for health insurance to eligible retirees, terminated employees and their dependents. The benefits are provided in accordance with County ordinances and collective bargaining agreements. The criteria to determine eligibility include: years of service, employee age, disability due to line of duty and whether the employee has vested in the respective retirement plan. The County funds the benefits on a pay-as-you-go basis. Eligible employees are required to pay set premiums for a portion of the cost with the County subsidizing the remaining costs. During the fiscal year ended June 30, 2005, expenses (net of participant contributions) of $123,646 were recognized for post-employment benefits. There are 36 participants currently eligible. Expenses for post-retirement benefits are recognized as eligible employee benefits are paid. E. Landfill closure and postclosure care costs State and Federal laws and regulations require that the County place a final cover on its landfill sites and perform certain maintenance and monitoring functions at the sites for a minimum of thirty years after closure. In addition to operating expenses related to current activities of the landfill site, an expense provision and related liability are being recognized based on the future closure and postclosure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used each year. The estimated liability for landfill closure and postclosure care costs is approximately $9.4 million as of June 30, 2005, which is based on 46% usage of the Knott Landfill capacity and full usage of several smaller sites. It is estimated that an additional $7.6 million will be recognized as closure and postclosure care costs between July 1, 2005, and the date the landfill is currently expected to be filled to capacity (the year 2029). The estimated total current cost of the landfill closure and postclosure care ($17,001,480) is based on the amount that would be paid if all equipment, facilities and services required to close, monitor and maintain the landfills were acquired as of June 30, 2005. However, the actual cost of closure and postclosure care may be higher due to inflation, changes in technology or changes in regulations. In addition, the County is required by State and Federal laws and regulations to make annual contributions to finance closure and postclosure care. The County meets the "Local Government Financial Test" which provides financial assurance as to the County's ability to meet its financial obligations for closure and postclosure. F. Fund Structure Major Funds - Governmental General - accounts for the financial operations of the County which are not accounted for in any other fund. Principal sources of revenues are property taxes and revenues from other governmental -47- Exhibit A- Page _~e47~ of a~ DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS ' JUNE 30, 2005 agencies. Expenditures primarily cover functions related to assessment and taxation, district ' attorney, clerk's records and administration. Sheriffs - property taxes, charges for services, Federal and State grants for public safety. Mental Health - fees for services, Federal and State grants for mental health services and counseling. Road - gas tax apportionment and forest receipts for public roads and highways. Project Development - proceeds from County land sales and leases for property acquisition for County offices. Maior Funds - Proprietary - Enterprise Solid Waste - fees and charges for services for the operation and maintenance of the County's sanitary landfill and transfer stations. Fair & Expo Center - fees, transfers and property taxes for the operation of a fair and expo center, annual county fair and debt service. Nonmaior Governmental Funds Special Revenue Funds Business Loan - loan repayment and interest for loans to business entities for job creation. Community Development Block Grant - State and Federal funds for programs to low and moderate- income households. Cultural Coalition - State funds used for programs to promote culture. Grant Projects - grants for local programs as designated by the grantor. Justice Court - fines and fees for public safety activities. La Pine Industrial - charges for services for industrial development in the La Pine area. La Pine Senior Center - resources generated from fund raising activities to build a senior center. Park Acquisition and Development - fees paid by developers for County parks and an apportionment from the State of Oregon. PERS Reserve - charges to County's operating funds and departments to establish a reserve for possible increases in the PERS rate. County School - local taxes and forest receipts for education. Special Transportation - State grant for transportation. Taylor Grazing - Federal funds administered by State for rangeland improvement. -48- Exhibit A Page_ & r7 of a-tov- DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Transient Room Tax - lodging tax for promotion of tourism and County services. Video Lottery - State's video lottery apportionment for economic development. Welcome Center - lodging taxes for repayment of debt and recreation advertising. Industrial Development - payments from lessees for assistance to industrial development within the County. Land Sales Maintenance - land sale proceeds for supervision and maintenance of County land. Liquor Enforcement - allocation of State funds for enforcement of liquor laws. Victims' Assistance - grants for providing assistance to crime victims. Law Library - fines and fees for maintenance of the law library. County Clerk Records - fees for upgrading storage and retrieval systems. Commission on Children and Families - Federal and State grants for family and children programs. Community Justice-Juvenile - State grants and fees for response to juvenile delinquency programs within the County. Sheriffs Asset Forfeiture - proceeds from sale of assets forfeited in State and Federal Court for law enforcement programs. Court Facilities - State grant to provide security in the court building. Deschutes County Communication System - contracts and loan proceeds for radio system for public safety organizations of Deschutes County. Sheriffs Capital Reserve - transfer from the Sheriffs fund for future capital expenditures. Health Department - fees for services and State grants for community wide health care. Healthy Start-Prenatal - fees for services and State grants for comprehensive prenatal care for low- income women and their infants. ABHA - State grant for mental health services. Acute Care Services - State grant funds for acute care services to the mentally ill. OHP- Chemical Dependency - Oregon Health Plan and chemical dependency fees for drug abuse treatment. Public Land Corner Preservation - recording fees for location and maintenance of survey comers. Code Abatement - monies for enforcement of County solid waste and sanitation codes. -49- Exhibit Page , a DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Community Development - fees and charges for services for planning, health inspectors, building safety, education and public services. CDD-TDC - transfers for maintenance of water quality and open space. Community Development Reserve - funds transferred from Community Development for contingencies. CDD-Building Reserve Program - surplus building program funds for contingencies. CDD-Electrical Program Reserve - surplus electrical program funds for contingencies. GIS (Geographic Information Systems) Dedicated - recording fees and sales for map data system. Natural Resource Protection - Grants for the control of noxious weeds and promotion of healthy forests. Federal Forest Title III - federal monies for grants related to National Forest activities in Deschutes County. Road Building and Equipment - transfers from Road Fund for future capital asset purchases. Road Improvement Reserve - fees for future infrastructure requirements. Vehicle Maintenance and Replacement - transfers from County funds and departments for future vehicle replacement and repair. Dog Control - licenses and fees for animal control. Adult Parole and Probation - charges for services and State Department of Corrections grant for operation of County justice program. Deschutes County 911 County Service District - property taxes, charges for services and grants for operations of countywide emergency call center. Deschutes County 911 County Service District Equipment Reserve - funds transferred from DC 911 for future capital asset requirements. County Extension and 4-H County Service District - property taxes for Oregon State University's Extension Service programs. Black Butte Ranch County Service District - property taxes and fees for security services and law enforcement within the District's boundaries. Sunriver Service District - property taxes and fees for law enforcement and fire services within the District's boundaries. Sunriver Service District Reserve - funds transferred from Sunriver Service District for future capital asset requirements. Exhibit A -50- Page tQ g of a$~ DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 Debt Service Funds 2000 Series Ltd Tax Improvement - collection of special assessment liens for debt service on special assessment bond. 2003 Series Ltd Tax Improvement - collection of special assessment liens for debt service on special assessment bonds. 2005 Series Ltd Tax Improvement - collection of special assessment liens for the debt service on special assessment bonds. CDD Building 1996 Full Faith & Credit, Series 2004 - funds transferred from Community Development for debt service issued to building Community Development building. Full Faith and Credit, 2003 - funds transferred from departments for debt service on bonds issued for building, remodel and acquisition of office buildings, recycling center, communication system. HHS/BJCC 1998 COPs - funds transferred from Health and Mental Health for debt service on certificates of participation issued to build and remodel buildings for use by these departments. Government Center 1989-98 COPs - funds transferred for repayment of certificates of participation issued to remodel building. Public Safety 1993/1996/1998/2002 General Obligation - property taxes for debt service on bonds issued to building public safety complex. Redmond Building 1994 COPs - funds transferred for debt service on certificates of participation issued to acquire and remodel building. PERS Series 2002 and 2004 Debt Service - transfer from operating funds for debt service on bonds issued to fund pension liability. Welcome Center 1988/98 COPs - funds transferred from Welcome Center special revenue fund for debt service on certificates of participation issued to build Welcome Center. Bend Library County Service District General Obligation - property taxes for debt service on bonds issued to build Bend Library. Redmond Library County Service District General Obligation - property taxes for debt service on bonds issued to remodel building for Redmond Library. Sunriver Library County Service District General Obligation - property taxes for debt service on bonds issued to build Sunriver Library. Capital Projects Funds Newberry Neighborhood - proceeds from land sales and grants for maintenance of water quality and open space. Local Improvement District - collections on unbonded liens and bond sales to improve roads and streets for benefited properties. -51- Exhibit A Page _r? 0 of a DESCHUTES COUNTY, OREGON NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 La Pine Building Purchase/Remodel - proceeds from borrowing to purchase and remodel office building in La Pine area. Remodel Projects - proceeds from borrowing to remodel existing County buildings, primarily those used by the State Courts. Courthouse Remodel - proceeds from borrowing to remodel the historic Courthouse. Nonmaior Proprietary Funds - Internal Service Funds Building Services - interfund charges for custodial, repairs and maintenance and related activities for County facilities. Administrative Services - interfund charges for services provided by County administration. Finance - interfund charges for services provided by Finance Department. Legal - interfund charges for services provided by Legal Department. Personnel - interfund charges for services provided by Personnel Department. Information Technology - interfund charges for services provided by IT Department. Information Technology Reserve - interfund charges for future technology improvements. Insurance - interfund charges for non-medical/dental insurance coverage. Health Benefits Trust - interfund charges for medical/dental health insurance. -52- G. Subsequent Events On August 11, 2005, the County issued $5,915,000 Full Faith and Credit Refunding Obligations, Series 2005 and contributed $651,573 of its funds to provide resources to purchase certain direct U. S. Government obligations which are irrevocably pledged to and held in trust for the benefit of the owners of the refunded Certificates of Participation (COPs) by the escrow agent for the purpose of generating resources for all future debt service payments of $6,130,000 of the COPs. As a result, the refunded COPs are considered to be defeased and the liability, in the amount of $6,130,000 will be removed from the Statement of Net Assets. This advance refunding was undertaken to reduce total debt service payments over the next thirteen years by $360,598 and resulted in an economic gain of $159,687. Exhibit A Page r7l of a~~ REQUIRED SUPPLEMENTARY INFORMATION Exhibit P- Page C72--of o2 g This page intentionally left blank. Exhibit A Page 23 of ~L-IQI DESCHUTES COUNTY, OREGON GENERAL FUND STATEMENT OF BUDGETED AND ACTUAL TRANSACTIONS BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES Local Taxes $ 14,316,500 $ 14,316,500 $ 14,812,988 $ 496,488 Licenses and Permits 172,000 172,000 227,445 55,445 Fines, forfeitures and penalties 421,728 421,728 487,747 66,019 Investment earnings and rent 122,627 122,627 234,974 112,347 Charges for services 1,656,143 1,656,143 2,664,712 1,008,569 Intergovemmental State 2,026,124 2,026,124 2,232,972 206,848 Federal 327,413 327,413 323,530 (3,883) Total revenues 19,042,535 19,042,535 20,984,368 1,941,833 EXPENDITURES General government Board of Commissioners Personnel services 463,933 453,933 446,561 7,372 Materials and services 111,328 124,328 120,130 4,198 Capital outlay 100 7,100 5,616 1,484 Totals 575,361 585,361 572,307 13,054 Assessor Personnel services 2,144,592 2,134,338 2,046,655 87,683 Materials and services 963,083 982,283 942,433 39,850 Debt service 205,858 205,858 205,855 3 Capital outlay 63,800 65,600 64,986 614 Totals 3,377,333 3,388,079 3,259,929 128,150 Clerk / Elections Personnel services 588,450 608,450 604,403 4,047 Materials and services 572,697 563,697 508,039 55,658 Capital outlay 20,900 9,900 8,558 1,342 Totals 1,182,047 1,182,047 1,121,000 61,047 Board of Property Tax Appeals Personnel services 32,006 32,006 31,174 832 Materials and services 19,371 19,371 11,467 7,904 Totals 51,377 51,377 42,641 8,736 -55- Continued Exhibit A Page of -$'O~ DESCHUTES COUNTY, OREGON GENERAL FUND STATEMENT OF BUDGETED AND ACTUAL TRANSACTIONS BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Expenditures (Continued) District Attorney Personnel services Materials and services Capital outlay Totals Finance - Tax Personnel services Materials and services Debt service Capital outlay Totals Veterans' Services Personnel services Materials and services Capital outlay Totals Property Management Personnel services Materials and services Capital outlay Totals Surveyor Personnel services Materials and services Totals Non-Departmental Materials and services Capital outlay Totals Budgeted Amounts Actual Variance with Original Final Amounts Final Budget 2,701,776 2,701,776 2,582,808 118,968 673,697 673,697 603,696 70,001 17,500 17,500 10,059 7,441 3,392,973 3,392,973 3,196,563 196,410 403,600 403,600 372,684 30,916 319,677 320,477 294,203 26,274 48,288 48,288 48,279 9 15,000 18,800 15,000 3,800 786,565 791,165 730,166 60,999 113,435 113,435 111,617 1,818 38,232 38,232 36,728 1,504 100 100 - 100 151,767 151,767 148,345 3,422 87,943 87,943 74,880 13,063 54,194 54,194 41,625 12,569 100 100 - 100 142,237 142,237 116,505 25,732 84,493 90,493 88,772 1,721 79,443 73,443 71,317 2,126 163,936 163,936 160,089 3,847 815,040 815,040 785,675 29,365 100 100 - 100 815,140 815,140 785,675 29,465 10,063,375 10,078,721 10,346,588 517,808 Total general services Exhibit P Page _7 of -56- Continued DESCHUTES COUNTY, OREGON GENERAL FUND STATEMENT OF BUDGETED AND ACTUAL TRANSACTIONS BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Budgeted Amounts Expenditures (Continued) Operating contingency Total expenditures Excess of revenues over expenditures ' Other financing sources (uses) Appropriation transfers in (out) Transfers in Transfer out ' Total other financing sources (uses) Net change in fund balance Fund balance - Beginning of year Fund balance - End of year Actual Variance with Original Final Amounts Final Budget 2,252,265 1,627,429 - 1,627,429 12,891,001 12,291,511 10,918,895 2,158,291 6,151,534 6,751,024 10,851,146 4,100,122 (455,255) - (455,255) 156,681 156,681 156,681 - (10,308,215) (10,452,450) (10,452,450) - (10,151,534) (10,751,024) (10,295,769) (455,255) (4,000,000) (4,000,000) 555,377 4,555,377 4,700,000 4,700,000 5,114,328 414 328 , $ 700,000 $ 700,000 $ 5,669,705 $ 4,969,705 -57- Exhibit A Page _g,(e of a gq DESCHUTES COUNTY, OREGON DESCHUTES COUNTY SHERIFF'S OFFICE SPECIAL REVENUE FUND STATEMENT OF BUDGETED AND ACTUAL TRANSACTIONS BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes Fines, forfeitures and penalties Investment earnings and rent Charges for services Intergovernmental Local State Federal Total revenues EXPENDITURES Sheriffs Services Personnel services Materials and services Capital outlay Automotive/Communications Personnel services Materials and services Capital outlay Investigations/Evidence Personnel services Materials and services Capital outlay Patrol/Civil/Comm Support Personnel services Materials and services Capital outlay Records Personnel services Materials and services Capital outlay Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ 12,356,618 $ 12,356,618 $ 12,858,579 $ 501,961 459,000 459,000 345,569 (113,431) 76,041 76,041 106,137 30,096 656,342 656,842 486,218 (170,624) 327,290 327,290 327,290 - 1,655,775 1,655,775 1,920,106 264,331 139,500 139,500 207,711 68,211 15,670,566 15,671,066 16,251,610 580,544 706,930 711,930 706,313 5,617 515,908 645,908 645,134 774 - 6,898 6,688 210 1,222,838 1,364,736 1,358,135 6,601 214,140 214,140 210,160 3,980 605,344 740,344 740,317 27 - 30,800 24,540 6,260 819,484 985,284 975,017 10,267 1,326,612 1,346,612 1,334,046 12,566 200,362 261,562 248,328 13,234 33,000 77,560 70,235 .7,325 1,559,974 1,685,734 1,652,609 33,125 5,772,429 423,061 308,000 6,503,490 515,899 77,353 7,200 600,452 -58- 5,608,721 553,061 454,068 6,615,850 500,899 92,353 11,486 604,738 5,517,595 538,134 381,566 6,437,295 481,744 89,205 10,129 581,078 91,126 14,927 72,502 178,555 19,155 3,148 1,357 23,660 Continued Exhibit 14 Page 22 of S ' DESCHUTES COUNTY, OREGON DESCHUTES COUNTY SHERIFF'S OFFICE SPECIAL REVENUE FUND STATEMENT OF BUDGETED AND ACTUAL TRANSACTIONS BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 ' Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Expenditures (Continued) Adult Jail ' Personnel services 5,035,087 4,963,728 4,851,297 112,431 Materials and services 1,113,539 1,213,539 1,209,129 4,410 Capital outlay 31,346 150,607 126,746 23,861 ' 6,179,972 6,327,874 6,187,172 140,702 Transport/Court Security Personnel services 161,132 156,132 148,250 7,882 Materials and services 14,722 14,722 5,941 8,781 ' Capital outlay 100 100 175,854 170,954 154,191 16,763 Emergency Services ' Personnel services 87,656 89,656 89,098 558 Materials and services 18,165 18,165 8,435 9,730 Capital outlay - 100 - 100 ' 105,821 107,921 97,533 10,388 Special Services Personnel services 364,945 369,945 365,288 4,657 ' Materials and services 46,399 61,399 54,827 6,572 Capital outlay - 21,731 10,677 11,054 411,344 453,075 430,792 22,283 ' Training Personnel services 97,904 100,404 99,642 762 Materials and services 32,364 82,364 62,442 19,922 ' Capital outlay 20,000 148,123 95,130 52,993 150,268 330,891 257,214 73,677 Non-Departmental ' Materials and services 8,021 8,021 8,021 - 8,021 8,021 8,021 - ' Total 17,737,518 18,655,078 18,139,057 516,021 Operating contingency 522,548 434,116 - 434,116 Total expenditures 18,260,066 19,089,194 18,139,057 950,137 Continued -59- Exhibit A Page __L r2 of DESCHUTES COUNTY, OREGON DESCHUTES COUNTY SHERIFF'S OFFICE SPECIAL REVENUE FUND STATEMENT OF BUDGETED AND ACTUAL TRANSACTIONS BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget (2,589,500) (3,418,128) (1,887,447) 1,530,681 - - 25,655 25,655 2,650,000 2,650,000 2,650,000 - (260,500) (260,500) (260,500) - 2,389,500 2,389,500 2,415,155 25,655 (200,000) (1,028,628) 527,708 1,556,336 200,000 1,028,628 1,117,106 88,478 $ - $ - $ 1,644,814 $ 1,644,814 -60- Expenditures (Continued) Excess (deficiency) of revenues over expenditures Other financing sources (uses) Sale of capital assets Transfers in Transfers out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit {-1- Page -9- of a'6 DESCHUTES COUNTY, OREGON MENTAL HEALTH SPECIAL REVENUE FUND STATEMENT OF BUDGETED AND ACTUAL TRANSACTIONS BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Licenses and Permits Fines, forfeitures and penalties Investment earnings and rent Charges for services Intergovernmental Local State Federal Total revenues ' EXPENDITURES Personnel services Materials and services ' Capital outlay Total ' Operating contingency Total expenditures ' Excess (deficiency) of revenues over expenditures ' Other financing sources (uses) Transfers in Transfer out Total other financing sources (uses) ' Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses ' Fund balance - Beginning of year Fund balance - End of year Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ - 105,500 $ 105,500 $ 115,899 $ 10,399 - 25,937 25,937 46,000 46,000 75,184 29,184 2,669,698 2,719,698 2,818,704 99,006 243,000 243,000 243,000 - 8,818,035 9,271,084 9,485,902 214,818 99,410 99,410 99,410 - 11,981,643 12,484,692 12 864 036 379 344 , , , 5,495,255 5,826,717 5,537,265 289,452 7,554,774 7,554,774 7,494,605 60,169 10,000 10,000 - 10,000 13,060,029 13,391,491 13,031,870 359,621 1,514,916 1,686,503 - 1 686 503 , , 14,574,945 15,077,994 13,031,870 2,046,124 (2,593,302) (2,593,302) (167,834) 2,425,468 1,340,722 1,340,722 1,340,722 - (150,000) (150,000) (150,000) 1,190,722 1,190,722 1,190,722 - (1,402,580) (1,402,580) 1,022,888 2,425,468 1,402,580 1,402,580 1,631,738 229,158 $ - $ - $ 2,654,626 $ 2,654,626 -61- Exhibit Pr Page _-0 of DESCHUTES COUNTY, OREGON ROAD SPECIAL REVENUE FUND STATEMENT OF BUDGETED AND ACTUAL TRASNACTIONS BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Budgeted Amounts REVENUES Local Investment earnings and rent Charges for services Other Intergovernmental Local State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Proceeds of sale of assets Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Actual Variance with Original Final Amounts Final Budget $ 75,000 $ 75,000 $ 162,054 $ 87,054 466,000 466,000 503,178 37,178 2,400 2,400 2,684 284 250,000 250,000 519,743 269,743 7,000,000 7,000,000 7,390,686 390,686 2,960,000 2,960,000 2,969,646 9,646 10, 753,400 10, 753,400 11, 547, 991 794,591 4,272,702 4,272,702 4,201,666 71,036 6,287,981 6,672,981 6,383,817 289,164 4,125,760 4,125,760 562,936 3,562,824 14,686,443 15,071,443 11,148,419 3,923,024 724,714 339,714 - 339 714 , 15,411,157 15,411,157 11,148,419 4,262,738 (4,657,757) (4,657,757) 399,572 5,057,329 290,000 290,000 290,000 - (870,000) (870,000) (870,000) - 245,500 245,500 377,047 131,547 (334,500) (334,500) (202,953) 131,547 (4,992,257) (4,992,257) 196,619 5,188,876 4,992,257 4,992,257 6,228,577 1,236,320 $ - $ - $ 6,425,196 $ 6,425,196 Exhibit Hr Page of a -62- OTHER SUPPLEMENTARY DATA Exhibit Page of A&I This page intentionally left blank. Exhibit 04 Page 93 of ac6a COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Exhibit Page of $ This page intentionally left blank. Exhibit Page _R-S of ~16 COMBINING NON-MAJOR GOVERNMENTAL FUNDS Exhibit A- Page _ of This page intentionally left blank. Exhibit - Page. $"2_ of a ' DESCHUTES COUNTY, OREGON 14ONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 ASSETS Cash and cash equivalents Investments, plus accrued interest Restricted cash Taxes receivable Accounts receivable Notes and contracts receivable Assessments receivable Due from other funds Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Deficit in pooled cash accounts Deposits Due to other funds Deferred revenues Total liabilities Fund balances: Unreserved, reported in nonmajor: Special revenue funds Debt service funds Capital project funds Total fund balances Total liabilities and fund balances Special Total Nonmajor Revenue Debt Service Capital Project Governmental Funds Funds Funds Funds $ 9,689,411 $ 576,741 $ 1,087,613 $ 11,353,765 13,967,965 988,453 1,864,025 16,820,443 15,327 - - 15,327 557,919 116,251 29,454 703,624 1,525,334 50,230 55,906 1,631,470 1,045,546 - 1,636,774 2,682,320 - 1,126,382 23,402 1,149,784 400,000 - - 400,000 $ 27,201,502 $ 2,858,057 $ 4,697,174 $ 34,756,733 $ 1,067,249 $ - $ 543,908 $ 1,611,157 18,476 - - 18,476 - - 3,200 3,200 - - 400,000 400,000 1,262,454 1,219,383 1,683,739 4,165,576 2,348,179 1,219,383 2,630,847 6,198,409 24,853,323 - - 24,853,323 - 1,638,674 - 1,638,674 - 2,066,327 2,066,327 24,853,323 1,638,674 2,066,327 28,558,324 $ 27,201,502 $ 2,858,057 $ 4,697,174 $ 34,756,733 -69- Exhibit Page _,R8 of a$t? DESCHUTES COUNTY, OREGON ASSETS Cash and cash equivalents Investments, plus accrued interest Restricted cash Taxes receivable Accounts receivable Notes and contracts receivable Due from other funds Total assets NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 Community Business Development Cultural Grant La Pine Loan Block Grant Coalition Projects Justice Court Industrial $ 26,426 $ - $ 1,358 $ 8,641 $ 33,153 $ 2,727 45,290 - 2,328 14,809 55,449 4,673 19,269 _ 867,771 - - - - 117,775 939,487 1 19,269 $ 3,686 $ 23,450 $ 88,602 $ 125,175 $ - $ - $ - $ 5,654 $ 5,087 $ - 18,476 - - _ _ 867,771 - - - - 117,775 867,771 18,476 - 5,654 5,087 117,775 71,716 793 3,686 17,796 83,515 7,400 93® $ 19,269 $ 3,686 $ 23,450 $ 88,602 $ 125,175 -70- Continued LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Deficit in pooled cash accounts Deferred revenues Total liabilities Fund balances: Undesignated Total liabilities and fund balances Exhibit A Page _?-q of a-_ DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 La Pine Park Senior Acquisition & PERS County Special Taylor Center Development Reserve School Transportation Grazing ASSETS Cash and cash equivalents $ 200,670 $ 227,396 $ 1,879,091 $ 119 $ 21,177 $ 1,056 Investments, plus accrued interest 343,921 389,727 3,217,709 204 36,295 1,809 Restricted cash - _ _ - Taxes receivable - _ Accounts receivable - 12,722 - - 40,970 Notes and contracts receivable - - Due from other funds - _ _ Total assets $ 544,591 $ 629,845 $ 5,096,800 $ 323 $ 98 442 $ 2 865 , , LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 2,515 $ - $ - $ - $ 83,239 $ - Deficit in pooled cash accounts - _ _ Deferred revenues _ - Total liabilities 2,515 - - - 83,239 - Fund balances: Undesignated 542,076 629,845 5,096,800 323 15,203 2,865 Total liabilities and fund balances $ 544,591 $ 629,845 $ 5,096,800 $ 323 $ , 98,442 $ 2,865 Continued -71- Exhibit A Page 9 0 of DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 Transient Welcome Industrial Land Sales Liquor Room Tax Video Lottery Center Development Maintenance Enforcement ASSETS Cash and cash equivalents $ 16,280 $ 71,831 $ 19,029 $ 5,896 $ 106,390 $ 19,103 Investments, plus accrued interest 27,902 123,107 58,882 10,104 182,339 32,741 Restricted cash - - 15,327 - - _ Taxes receivable 271,817 - 45,303 Accounts receivable - - _ Notes and contracts receivable Due from other funds - - _ _ _ _ Total assets $ 315,999 $ 194,938 $ 138,541 $ 16,000 $ 51,844 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 32,572 $ - $ 63,252 $ - $ 52 $ - Deficit in pooled cash accounts - - - Deferred revenues - - 4,243 Total liabilities 32,572 - 67,495 - 52 - Fund balances: Undesignated 283,427 194,938 71,046 16,000 288,677 51,844 Total liabilities and fund balances $ 315,999 $ 194,938 $ 138,541 $ 16,000 $ 288,729 $ 51,844 Continued Exhibit - -72- Pa e 4 l of % ' DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 Commission Community Sheriff's Victims' County Clerk on Children & Justice Asset Assistance Law Library Records Families Juvenile Forfeiture ASSETS Cash and cash equivalents $ 6,983 $ 21,125 $ 61,091 $ 288,226 $ 92,240 $ 30,096 Investments, plus accrued interest 11,874 36,205 104,700 493,980 158,086 51,579 Restricted cash _ _ _ _ Taxes receivable - - Accounts receivable 6,473 - - 89,097 102,157 - Notes and contracts receivable - _ Due from other funds - _ _ - Total assets $ 25,330 $ 57330 $ 165,791 $ 871,303 $ 352 483 $ 81 675 , , LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 3,150 $ - $ 257,195 $ 97,944 $ - Deficit in pooled cash accounts - _ _ - _ _ Deferred revenues _ 4,500 - - 9,126 - _ Total liabilities 4,500 3,150 - 266 321 97 944 - , , Fund balances: Undesignated 20,830 54,180 165,791 604,982 254,539 81,675 Total liabilities and fund balances $ 25,330 $ 57,330 165,791 $ 871,303 $ 352,483 $ 81,675 Continued -73- Exhibit Pr- Page of DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 Des Co Sheriffs Court Communication Capital Facilities System Reserve Health Healthy Start ABHA ASSETS Cash and cash equivalents $ 1,324 $ 40,057 $ 269,245 $ 349,833 $ 82,370 $ 179,374 Investments, plus accrued interest 2,269 68,652 461,449 599,346 141,171 307,423 Restricted cash - - - - - - Taxes receivable - - - - - - Accounts receivable 4,652 - - 392,754 80,687 - Notes and contracts receivable - - - - - - Due from other funds - - - - - - Total assets $ 8,245 $ 108,709 $ 730,694 $ 1,341,933 $ 304,228 $ 486,797 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 4,907 $ - $ 73,466 $ 53,073 $ - Deficit in pooled cash accounts - - - - - - Deferred revenues - - - 6,400 - - Total liabilities - 4,907 - 79,866 53,073 - Fund balances: Undesignated 8,245 103,802 730,694 1,262,067 251,155 486,797 Total liabilities and fund balances $ 8,245 $ 108,709 $ 730,694 $ 1,341,933 $ 304,228 $ 486,797 -74- Continued Exhibit Page 0 3 of a3N DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 Acute Care Public Land Code Community. Services OHP-CDO Corner Abatement Development CDD-TDC ASSETS Cash and cash equivalents $ 107,171 $ 42,868 $ 316,858 $ 10,578 $ 608,454 $ 34,139 Investments, plus accrued interest 183,677 73,470 543,052 18,129 1,042,637 58,511 Restricted cash - _ _ _ _ _ Taxes receivable - _ _ Accounts receivable 450,000 - - - 3,010 - Notes and contracts receivable - _ _ Due from other funds _ _ _ _ Total assets $ 740,848 $ 116,338 $ 859,910 $ 28,707 $ 1,654,101 $ 92,650 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 8,868 $ 877 $ - $ 67,527 $ - Deficit in pooled cash accounts - - - _ _ _ Deferred revenues - _ _ Total liabilities 8,868 877 - 67,527 - Fund balances: Undesignated 740,848 107,470 859,033 28,707 1,586,574 92,650 Total liabilities and fund balances $ 740,848 $ 116,338 $ 859,910 $ 28,707 $ 1,654,101 $ 92,650 Continued -75- Exhibit Page -qA of DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 Community CDD Building CDD Natural Development Program Electrical GIS Resource Federal Reserve Reserve Reserve Dedicated Protection Forest Title III ASSETS Cash and cash equivalents $ 600,150 $ 209,064 $ 37,685 $ 354,834 $ 31,760 $ 79,008 Investments, plus accrued interest 1,028,578 358,308 64,586 608,137 54,433 135,410 Restricted cash - - _ _ - _ Taxes receivable - - - _ Accounts receivable - - - 30,692 - - Notes and contracts receivable 60,000 - - - Due from other funds 400,000 - - - _ _ Total assets $ 2,088,728 $ 567,372 $ 102,271 $ 993,663 $ 86,193 $ 214,418 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - $ - $ 49 $ 855 $ 23,120 Deficit in pooled cash accounts - - Deferred revenues 60,000 - - - - _ Total liabilities 60,000 - - 49 855 23,120 Fund balances: Undesignated 2,028,728 567,372 102,271 993,614 85,338 191,298 Total liabilities and fund balances $ 2,088,728 $ 567,372 $ 102,271 $ 993,663 $ 86,193 $ 214,418 Continued Exhibit Pr -76- Page ~5 of a~~ ' DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 ' Vehicle Road Road Maintenance ' Building & Improvement & Adult Parole Deschutes Equipment Reserve Replacement Dog Control & Probation County 911 ASSETS Cash and cash equivalents $ 274,870 $ 220,443 $ 281,599 $ 31,749 $ 125,258 $ 551,806 Investments, plus accrued interest 471,090 377,810 482,623 54,414 214,591 947,735 Restricted cash - - - - _ - Taxes receivable - - - - 109,299 Accounts receivable - 1,194 1,755 268,754 Notes and contracts receivable Due from other funds - _ - - - _ ■ Total assets $ 745,960 $ 598,253 $ 764,222 $ 87,357 $ 341,604 $ 1,877,594 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Deficit in pooled cash accounts Deferred revenues Total liabilities Fund balances: Undesignated Total liabilities and fund balances $ 45,446 $ - $ 17,978 $ 38,028 $ 13,288 $ 26,930 - - - - - 87,439 - 45,446 - 17,978 38,028 13,288, 114,369 700,514 598,253 746,244 49,329 328,316 1,763,225 745,960 $ 598,253 $ 764,222 $ 87357 $ 341,604 $ 1,877,594 Continued -77- Exhibit - Page -(k of q' DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 Black Butte Ranch Sunriver Sunriver Total Non. Deschutes County Service Service Major Special County 911 Service District - District - Revenue Reserve Extension 4-H District General Fund Reserve Fund Funds ASSETS Cash and cash equivalents $ 103,927 $ 51,357 $ 212,924 $ 856,765 $ 483,837 $ 9,689,411 Investments, plus accrued interest 178,529 88,222 - - - 13,967,965 Restricted cash - - - - - 15,327 Taxes receivable - 10,293 17,971 103,236 - 557,919 Accounts receivable - 51 - 21,097 - 1,525,334 Notes and contracts receivable - - - - - 1,045,546 Due from other funds - - - - - 400,000 Total assets $ 282,456 $ 149,923 $ 230,895 $ 981,098 $ 483,837 $ 27,201,502 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 8,422 $ 529 $ 133,226 $ - $ 1,067,249 Deficit in pooled cash accounts - - - - - 18,476 Deferred revenues - 8,234, 14,377 82,589 - 1,262,454 Total liabilities - 16,656 14,906 215,815 - 2,348,179 Fund balances: Undesignated 282,456 133,267 215,989 765,283 483,837 24,853,323 Total liabilities and fund balances $ 282,456 $ 149,923 $ 230,895 $ 981,098 $ 483,837 $ 27,201,502 Exhibit A -78- Page of~ ' DESCHUTES COUNTY, OREGON NONMAJOR DEBT SERVICE FUNDS ' COMBINING BALANCE S HEET JUNE 30, 2005 ' CDD Bldg Full 2000 Series 2003 Series 2005 Series Faith & LTD Tax LTD Tax LTD Tax Credit, Series Full Faith & ' Improvement Improvement Improvement 2004 Credit 2003 ASSETS Cash and cash equivalents $ 1,400 $ 8,690 $ 29,897 $ 5,805 $ 9,482 Investments, plus accrued interest 2,398 14,892 51,238 9,951 16 250 Taxes receivable - - - - , Accounts receivable - - - 50,230 Assessments receivable 261,347 583,646 281,389 - - Total assets $265,145 $ 6607,228 $ 362,524 $ 15,756 $ 75,962 ' LIABILITIES AND FUND BALANCES Liabilities: Deferred revenues $ 261,347 $ 583,646 $ 281,389 $ - $ - ' Fund balances: Unreserved 3,798 23,582 81,135 15,756 75,962 Total liabilities and fund balances $ 265,145 $ 607,228 $ 362,524 $ 15,756 $ 75,962 Continued -79- Exhibit P of DESCHUTES COUNTY, OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 Government Public Safety Redmond HHS/BJCC Center General Building 1994 PERS Series 1998 COPs 1989/98 COPs Obligation COPs 2002 / 2004 ASSETS Cash and cash equivalents $ 240,458 $ 50,393 $ 95,420 $ 23,908 $ 14,921 Investments, plus accrued interest 412,111 86,366 163,389 40,976 25,572 Taxes receivable - - 79,372 - - Accounts receivable - - - - - Assessments receivable - - - - - Total assets $ 652,569 $ 136,759 $ 338,181 $ 64,884 $ 40,493 LIABILITIES AND FUND BALANCES Liabilities: Deferred revenues $ - $ - $ 63,497 $ - $ - Fund balances: Unreserved Total liabilities and fund balances Exhibit A- Page ~Q_ of ~g 652,569 136,759 274,684 64,884 40,493 $ 652,569 $ 136,759 $ 338,181 $ 64,884 $ 40,493 -80- Continued ' DESCHUTES COUNTY, OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING BALANCE S HEET JUNE 30, 2005 ' Redmond Sunriver Total Non- Welcome Bend Library Library CSD Library CSD Major Debt Center CSD General General General Service ' 1988/98 COPs Obligation Obligation Obligation Funds ASSETS Cash and cash equivalents $ 59,190 $ 30,453 $ 3,180 $ 3,544 $ 576,741 Investments, plus accrued interest 101,443 52,314 5,463 6,090 988,453 Taxes receivable 25,765 7,346 3,768 116,251 Accounts receivable - - - - 50,230 Assessments receivable - - - - 1,126,382 Total assets $ 160,633 $ 108,532 $15,989 $$13402 2® LIABILITIES AND FUND BALANCES t Liabilities: Deferred revenues $ - $ 20,612 $ 5,877 $ 3,015 $ 1,219,383 ' Fund balances: Unreserved 160,633 87,920 10,112 10,387 1,638,674 Total liabilities and fund balances $ 160,633 $$108,532 $ ®15,989 $13,402 $ 2,858 057 -81- Exhibit A- Page of a g3`q DESCHUTES COUNTY, OREGON ASSETS Cash and cash equivalents Investments, plus accrued interest Taxes receivable Accounts receivable Notes and contracts receivable Assessments receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Deposits Due to other funds Deferred revenues Total liabilities Fund balances: Unreserved Total liabilities and fund balances NONMAJOR CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET JUNE 30, 2005 La Pine Total Non- Local General Building Major Capital Newberry Improvement County Purchase and Remodel Courthouse Projects Neighborhood District Projects Remodel Projects Remodel Funds $ 61,310 $ 173,403 $ 377,602 $ 106,175 $ 85,560 $ 283,563 $ 1,087,613 105,076 297,191 647,160 181,970 146,638 485,990 1,864,025 - - 29,454 - - - 29,454 - - - - 55,906 - 55,906 1,636,774 - - - - - 1,636,774 23,402 - - - - 23,402 $ 1,803,160 $ 493,996 $ 1,054,216 $ 288,145 $ 288,104 $ 769,553 $ 4,697,174 $ 31,630 $ - $ 68,565 $ 1,642 $ 187,844 $ 254,227 $ 543,908 - 3,200 - - - - 3,200 400,000 - - - - - 400,000 1,636,774 23,402 23,563 - - 1,683,739 2,068,404 26,602 92,128 1,642 187,844 254,227 2,630,847 (265,244) 467,394 962,088 286,503 100,260 515,326 2,066,327 $ 1,803,160 $ 493,996 $ 1,054,216 $ 288,145 $ 288,104 $ 769,553 $ 4,697,174 -82- Exhibit or Page j 0 / of(7~► ' DESCHUTES COUNTY, OREGON INONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 ' Special Total Nonmajor Revenue Debt Service Capital Project Governmental Funds Funds Funds Funds REVENUES Local Taxes-Property $ 6,384,480 $ 2,839,112 $ 466,940 $ 9 690 532 Taxes-Other 3,048,662 - - , , 3 048 662 Licenses and Permits 196,001 , , 196 001 ' Fines, forfeitures and penalties 471,782 , 471 782 Investment earnings and rent 557,978 709,118 638,162 , 1 905 258 Charges for services 12,030,634 1,115,294 232,190 , , 13 378 118 ' Other Intergovernmental 837,965 - 14,842 , , 852,807 Local State 1,290,080 - - 1,290,080 Federal 11,777,314 - - 11,777,314 ' 2,309,797 - 245,468 2,555,265 Total revenues 38,904,693 4,663,524 1,597,602 45,165,819 EXPENDITURES ' Current: General services 7,283,399 - _ 7 283 399 Education 1,151,264 - - , , 1 151 264 County roads 605,242 , , 605 242 ' Public safety 17,764,330 , 17 764 330 Health and welfare 10,071,967 - _ , , 10 071 967 Debt service: , , Principal Interest 3,561,475 - 3,561,475 Trustee fees 3,334 ,f45 3,334,145 Debt issuance costs - 7,685 - 53,280 56,542 7,685 109 822 ' Capital outlay 2,360,900 - 6,706,642 , 9,067,542 Total expenditures 39,237,102 6,956,585 6,763,184 52,956,871 Excess (deficiency) of revenues over expenditures (332,409) (2,293,061) (5,165,582) (7,791,052) OTHER FINANCING SOURCES (USES) Transfers in from other funds 10,903,193 2,247,804 600,000 13 750 997 Transfer out to other funds (5,248,739) - (1,161,919 , , (6,410,658) Issuance of debt Discount on bonds - - 2,722,797 2,722,797 Refunding bonds issued - - - 1,790,000 (4,504) - (4,504) 1 790 000 Premium on refunding bonds 3,514 - , , 3 514 Payment to refunded debt escrow agent - (1,953,354) - , (1,953,354) Proceeds of sale of assets 466,504 - - 466,504 Total other financing sources (uses) 6,120,958 2,087,964 2,156,374 10,365,296 Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses 5,788,549 (205,097) (3,009,208) 2,574,244 Fund balance - Beginning of year 19,064,774 1,843,771 5,075,535 25,984,080 Fund balance - End of year $ 24,853,323 $ 1,638 674 $ 2,066,327 $ 28,558,324 -83- Exhibit of DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 Community Business Development Cultural Grant Loan Block Grant Coaltion Projects Justice Court REVENUES Local Taxes-Property $ - $ - $ - $ - $ - Taxes-Other - - - - - Licenses and Permits - - - - - Fines, forfeitures and penalties - - - Investment earnings and rent 1,155 101 62 462 566 Charges for services - - - 70,000 - Other 111,601 - - - - Intergovernmental Local - - - - - State - 533,906 6,624 14,203 - Federal - - - - - Total revenues 112,756 534,007 6,686 84,665 566 EXPENDITURES Current: General services 99,774 535,572 3,000 85,115 391,771 Education - - - - - County roads - - - - - Public safety - - - - - Health and welfare - - - - Capital outlay - - - - - Total expenditures 99,774 535,572 3,000 85,115 391,771 Excess (deficiency) of revenues over expenditures 12,982 (1,565) 3,686 (450) (391,205) OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - - 421,528 Transfer out to other funds (250,000) - - - - Proceeds of sale of assets - - - - - Total other financing sources (uses) (250,000) - - - 421,528 Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (237,018) (1,565) 3,686 (450) 30,323 Fund balance - Beginning of year 308,734 2,358 - 18,246 53,192 Fund balance - End of year $ 71®716 $ 793 $ 3,686 $ 17,796 $ 83,515 Continued -84- Exhibit P Page i 03 of a DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 Park La Pine La Pine Acquisition & PERS County Industrial Senior Center Development Reserve School REVENUES Local Taxes-Property $ - $ - $ _ $ _ $ _ Taxes-Other _ _ Licenses and Permits - - 42,700 - - Fines, forfeitures and penalties - - - - 335 Investment earnings and rent 14,447 4,884 14,392 84,634 1,327 Charges for services - - - 2,071,440 - Other 18,694 562,741 - - _ Intergovernmental Local - _ _ State - - 97,143 - 160,750 Federal - - - - 989,156 Total revenues 33,141 567,625 154,235 2,156,074 1,151,568 EXPENDITURES Current: General services 194,292 25,549 42,560 850 - Education - - - - 1,151,264 County roads - _ _ Public safety - _ Health and welfare - _ _ Capital outlay - - 96,924 - - Total expenditures 194,292 25,549 139,484 850 1,151,264 Excess (deficiency) of revenues over expenditures (161,151) 542,076 14,751 2,155,224 304 OTHER FINANCING SOURCES (USES) Transfers in from other funds - - _ - - Transfer out to other funds - - - (70,408) - Proceeds of sale of assets 168,429 Total other financing sources (uses) 168,429 - - (70,408) - Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses 7,278 542,076 14,751 2,084,816 304 Fund balance - Beginning of year 122 - 615,094 3,011,984 19 Fund balance - End of year $ 7,400 $ 542,076 $ 629,845 $ 5,096,800 $ 323 -85- Exhibit Page Continued PC- of a DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Taxes-Other Licenses and Permits Fines, forfeitures and penalties Investment earnings and rent Charges for services Other Intergovernmental Local State Federal Total revenues EXPENDITURES Current: General services Education County roads Public safety Health and welfare Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Transfer out to other funds Proceeds of sale of assets Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Special Taylor Transient Video Welcome Transportation Grazing Room Tax Lottery Center 2,613,139 - 435,523 1,856 345 6,656 5,472 2,078 - 78,783 333,666 3,767 - 435,234 6,614 335,522 4,112 2,619,795 440,706 522,998 15,758 537,968 361,326 353,594 340,040 - - - - 340,040 15,758 537,968 361,326 353,594 (4,518) (11,646) 2,081,827 79,380 169,404 (2,079,652) (176,500) (160,000) (2,079,652) (176,500) (160,000) (4,518) (11,646) 2,175 (97,120) 9,404 19,721 14,511 281,252 292,058 61,642 $ 15,203 $ 2,865 $ 283,427 $ 194,938 $ 71,046 Continued -86- Exhibit P' Page /OS of a DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property $ _ Taxes-Other _ Licenses and Permits Fines, forfeitures and penalties - Investment earnings and rent 595 Charges for services - Other 1,350 Intergovernmental Locai - 46,898 1,488 - 5,767 993 333 1,079 29,394 - 31,325 1,157 State - - - 44,224 125,856 Federal - - - 35,023 - Total revenues 1,945 35,161 47,891, 112,393 128,092 EXPENDITURES Current: General services 14,566 27,848 - - 104,069 Education _ _ County roads _ _ Public safety - - - 250,056 - Health and welfare - - 2,027 - - Capital outlay _ _ _ _ _ Total expenditures 14,566 27,848 2,027 250,056 104,069 Excess (deficiency) of revenues over expenditures (12,621) 7,313 45,864 (137,663) 24,023 OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - 133,935 - Transfer out to other funds - - (35,000) - - Proceeds of sale of assets _ _ Total other financing sources (uses) - - (35,000) 133,935 - Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (12,621) 7,313 10,864 (3,728) 24,023 Fund balance - Beginning of year 28,621 281,364 40,980 24,558 30,157 Fund balance - End of year. $ 16,000 $ 288,677 $ 51,844 $ 20,830 $ 54,180 -87- industrial Land Sales Liquor Victims' Development Maintenance Enforcement Assistance Law Library Continued Exhibit Page /0 (o of DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 Commission Community Sheriffs County Clerk on Children & Justice Asset Court Records Families Juvenile Forfeiture Facilities REVENUES Local Taxes-Property $ - $ - $ - $ - $ - Taxes-Other - - - - - Licenses and Permits - - - - - Fines, forfeitures and penalties - - 2,482 - 84,445 Investment earnings and rent 3,859 19,478 40,607 1,742 442 Charges for services 95,088 42,679 571,635 - - Other - 7,800 - - - Intergovernmental Local - - - - - State - 889,447 361,729 - - Federal - 646,328 164,846 - - Total revenues 98,947 1,605,732 1,141,299 1,742 84,887 EXPENDITURES Current: General services 132,121 - - - - Education - - - - - County roads - - - - - Public safety - - 6,047,321 1,109 112,305 Health and welfare - 2,222,558 - - - Capital outlay - - - - - Total expenditures 132,121 2,222,558 6,047,321 1,109 112,305 Excess (deficiency) of revenues over expenditures (33,174) (616,826) (4,906,022) 633 (27,418) OTHER FINANCING SOURCES (USES) Transfers in from other funds 50,000 580,500 4,961,539 - - Transfer out to other funds - - - - - Proceeds of sale of assets - - - - - Total other financing sources (uses) 50,000 580,500 4,961,539 - - Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses 16,826 (36,326) 55,517 633 (27,418) Fund balance - Beginning of year 148,965 641,308 199,022 81,042 35,663 Fund balance - End of year $ 165,791 $ 604,982 $ 254,539 $ 81,675 $ 8,245 -88- Continued Exhibit Page Z O:Z of aJA DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS ' COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 Des Co Sheriffs ' Communication Capital System Reserve Health Healthy Start ABHA REVENUES Local Taxes-Property $ - $ - $ _ $ - $ _ Taxes-Other - _ - - _ Licenses and Permits - - ' Fines, forfeitures and penalties Investment earnings and rent 2,573 13,522 19,292 3,626 7,296 Charges for services 549,368 441,884 306,714 Other _ 11,741 63 Intergovernmental Local - - 19,544 - - State 2,302,967 143,636 2,546,072 ' Federal Total revenues 551,941 13,522 2,795,428 454,039 2,553,368 ' EXPENDITURES Current: General services - _ - _ _ Education ' County roads ~ = = = = Public safety 138,008 - - _ - Health and welfare - - 4,466,655 428,394 2,185,080 Capital outlay 411,675 49,474 - - Total expenditures 549,683 4,516,129 428,394 2,185,080 Excess (deficiency) of revenues over expenditures 2,258 13,522 (1,720,701) 25,645 368,288 OTHER FINANCING SOURCES (USES) ' Transfers in from other funds - 220,605 2,289,411 61,389 - Transfer out to other funds (79,216) - (150,000) _ (318,000) Proceeds of sale of assets - - - _ - Total other financing sources (uses) (79,216) 220,605 2,139,411 61,389 (318,000) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (76,958) 234,127 418,710 87,034 50,288 Fund balance - Beginning of year 180,760 496,567 843,357 164,121 436,509 Fund balance - End of year $ 103,802 $ 730,694 $ 1,262,067 $ 251,155 $ 486,797 Continued -89- Exhibit 4 r DESCHUTES COUNTY, OREGON ' NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ' FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Taxes-Other Licenses and Permits Fines, forfeitures and penalties Investment earnings and rent Charges for services Other Intergovernmental Local State Federal Total revenues Acute Care Public Land Code Community Services OHP-CDO Corner Abatement Development 120 - - - - - - 7,481 848 2,855 16,845 612 31,425 - - 697,649 - 6,003,446 - - 51,338 - - - - 1,012,341 450,000 514,051 - - - - - - 87,499 450,848 516,906 714,614 612 7,193,530 EXPENDITURES Current: General services - - 569,711 Education - - - County roads - - - Public safety - - - Health and welfare - 427,213 - Capital outlay - - - Total expenditures - 427,213 569,711 Excess (deficiency) of revenues over expenditures 450,848 89,693 144,903 OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - Transfer out to other funds - (82,000) - Proceeds of sale of assets 290,000 - - Total other financing sources (uses) 290,000 (82,000) - Excess (deficiency) of revenue and other financing sources over (under) 391 3,049,732 2,572,046 - 18,429 391 5,640,207 221 1,553,323 (1,099,477) ! (1,099,477) ■ expenditures and other financing uses 740,848 7,693 144,903 221 453,846 Fund balance - Beginning of year - 99,777 714,130 28,486 1,132,728 Fund balance - End of year $ 740,848 $ 107,470 $ 859,033 $ 28,707 $ 1,586,574 -90- Continued Exhibit Page 10 Of DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT O F REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 Community CDD Building CDD Development Program Electrical GIS CDD-TDC Reserve Reserve Reserve Dedicated REVENUES Local Taxes-Property $ - $ - $ - $ _ $ _ Taxes-Other - _ _ _ _ Licenses and Permits - - - Fines, forfeitures and penalties = Investment earnings and rent 2,162 33,128 6,931 1,204 20,445 Charges for services - - - - 484,221 Other - _ _ _ _ Intergovernmental Local _ _ - _ _ State 101,107 ' Federal _ _ _ Total revenues 2,162 33,128 6,931 1,204 605,773 EXPENDITURES Current: General services . 3,713 - - - 377,647 Education ' County roads ~ Public safety - Health and welfare - _ Capital outlay 22,500 14,654 Total expenditures = 26,213 = 392,301 Excess (deficiency) of revenues over expenditures (24,051) 33,128 6,931 1,204 213,472 OTHER FINANCING SOURCES (USES) ' Transfers in from other funds 459,477 370,000 70,000 - Transfer out to other funds (156,681) Proceeds of sale of assets - - ' Total other financing sources (uses) - 459,477 370,000 70,000 (156,681) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (24,051) 492,605 376,931 71,204 56,791 Fund balance - Beginning of year 116,701 1,536,123 190,441 31,067 936,823 Fund balance - End of year $ 92,650 $ 2,028,728 $ 567,372 $ 102,271 $ 993,614 -91- Exhibit Pa ~ e Continued of DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 Vehicle Natural Road Road Maintenance Resource Federal Building & Improvement & Protecton Forest Title III Equipment Reserve Replacement REVENUES Local Taxes-Property Taxes-Other Licenses and Permits Fines, forfeitures and penalties Investment earnings and rent Charges for services Other Intergovernmental Local State Federal Total revenues $ - $ - $ - $ - $ - 1,575 6,476 22,339 17,301 19,970 49,958 - 267,900 ' 120,190 - - - - 11,155 - - - - ' 37,831 349,114 - - - 220,709 355,590 22,339 17,301 287,870 EXPENDITURES Current: General services - - - - 85,567 Education - - - - - County roads 232,328 352,593 20,321 - - Public safety - - - - - Health and welfare - - - - - Capital outlay - - 976,248 - 249,839 Total expenditures 232,328 352,593 996,569 - 335,406 Excess (deficiency) of revenues over expenditures (11,619) 2,997 (974,230) 17,301 (47,536) OTHER FINANCING SOURCES (USES) Transfers in from other funds 20,000 - 850,000 - - Transfer out to other funds - - - (290,000) (12,605) Proceeds of sale of assets - - - 8,075 Total other financing sources (uses) 20,000 - 850,000 (290,000) (4,530) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses 8,381 2,997 (124,230) (272,699) (52,066) Fund balance - Beginning of year 76,957 188,301 824,744 870,952 798,310 Fund balance - End of year $ 85,338 $ 191,298 $ 700,514 $ 598,253 $ 746,244 Exhibit Page -ILL- of Q Z Continued -92- ' DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ' FOR THE YEAR ENDED JUNE 30, 2005 Deschutes Adult Parole Deschutes County 911 Dog Control & Probation County 911 Reserve Extension 4-H REVENUES ' Local Taxes-Property $ - $ - $ 2,959,547 $ - $ 264,177 Taxes-Other _ _ _ Licenses and Permits 153,181 - Fines, forfeitures and penalties 2,242 326,411 = = Investment earnings and rent 1,502 28,567 39,378 3,351 3,295 Charges for services - 116,136 22,511 2,151 Other Intergovernmental Local - - 59,222 - - State - 1,919,448 745,715 30,000 Federal _ Total revenues 156,925 2,390,562 3,826,373 3,351 299,623 , ' EXPENDITURES Current: General services - - - - 270,905 Education County roads ~ = = = = Public safety 253,056 2,508,448 2,791,017 Health and welfare - _ _ Capital outlay - - 394,254 1,950 Total expenditures 253,056 2,508,448 3,185,271 = 272,855 Excess (deficiency) of revenues ' over expenditures (96,131) (117,886) 641,102 3,351 26,768 OTHER FINANCING SOURCES (USES) Transfers in from other funds 103,309 22,300 - 130,000 - Transfer out to other funds _ _ (130,000) _ - Proceeds of sale of assets - - Total other financing sources (uses) 103,309 22,300 (130,000) 130,000 - , Excess (deficiency) of revenue and other financing sources over (under) ' expenditures and other financing uses 7,178 (95,586) 511,102 133,351 26,768 Fund balance - Beginning of year 42,151 423,902, 1,252,123 149,105 106,499 Fund balance - End of year $ 49,329 $ 328,316 $ 1,763,225 $ 282,456 $ 133,267 -93- Page Continued Exhibit Z of o DESCHUTES COUNTY, OREGON NONMAJOR SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Taxes-Other Licenses and Permits Fines, forfeitures and penalties Investment earnings and rent Charges for services Other Intergovernmental Local State Federal Total revenues EXPENDITURES Current: General services Education County roads Public safety Health and welfare Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Transfer out to other funds Proceeds of sale of assets Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit A Page L3 of ~Il- Black Butte Ranch Sunriver Sunriver County Service Service Total Non-Major Service District - District - Special District General Fund Reserve Fund Revenue Funds $ 449,990 $ 2,710,766 $ - $ 6,384,480 - 3,048,662 - 196,001 - - - 471,782 5,696 24,538 7,894 557,978 13,200 162,778 - 12,030,634 11,678 9,380 51,579 837,965 1,290,080 11,777,314 ' - - - 2,309,797 480,564 2,907,462 59,473 38,904,693 7,283,399 1,151,264 - - - 605,242 487,186 2,603,658 120 17,764,330 - - - 10,071,967 31,978 - 92,975 2,360,900 519,164 2,603,658 93,095 39,237,102 (38,600) 303,804 (33,622) (332,409) 159,200 10,903,193 (159,200) - (5,248,739) - - 466,504 (159,200) 159,200 6,120,958 (38,600) 144,604 125,578 5,788,549 ' 254,589 620,679 358,259 19,064,774 $ 215,989 $ 765,283 $ 483,837 $ 24,853,323 ' -94- DESCHUTES COUNTY, OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 CDD Bldg Full 2000 Series 2003 Series 2005 Series Faith & LTD Tax LTD Tax LTD Tax Credit, Series Improvement Improvement Improvement 2004 REVENUES Local Taxes-Property $ - $ - $ _ $ _ Investment earnings and rent 16,453 40,140 4,223 1,315 Charges for services 58,763 261,567 76,912 - Total revenues 75,216 301,707 81,135 1,315 ' EXPENDITURES Materials and services - - - 450 Debt Service: Principal 61,459 303,245 - 145,000 Interest 18,962 30,095 - 33,488 Bond issuance cost - - - 53,280 ' Total expenditures 80,421 333,340 - 232,218 Excess (deficiency) of revenues over expenditures (5,205) (31,633) 81,135 (230,903) OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - 200,000 Refunding bonds issued - - - 1,790,000 Premium on refunding bonds - - - 3,514 Payment to refunded bond escrow agent - - - (1,953,354) Total other financing sources (uses) - - - 40,160 Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (5,205) (31,633) 81,135 (190,743) Fund balance - Beginning of year 9,003 55,215 - 206,499 Fund balance - End of year $3,798 $ 23,582 $81,135 $ 15,756 Continued -95- Exhibit Page / of DESCHUTES COUNTY, OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Investment earnings and rent Charges for services Total revenues EXPENDITURES Materials and services Debt Service: Principal Interest Bond issuance cost Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Refunding bonds issued Premium on refunding bonds Payment to refunded bond escrow agent Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Government Public Safety Full Faith & HHS/BJCC Center General Credit 2003 1998 COPs 1989/98 COPs Obligation $ - $ - $ - $ 1,961,868 598,897 9,076 1,701 18,878 598,897 9,076 1,701 1,980,746 1,000 3,050 1,280 - 481,289 340,000 110,000 1,310,000 1,104,992 307,453 26,190 705,530 . (988,384) (641,427) (135,769) (34,784) 984,035 656,456 136,305 - 984,035 656,456 136,305 - (4,349) 15,029 536 (34,784) 80,311 637,540 136,223 309,468 $ 75,962 $ 652,569 $ 136,759 $ 274,684 Continued -96- Exhibit 4 Page 11_5_ of aP DESCHUTES COUNTY, OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Investment earnings and rent Charges for services Total revenues EXPENDITURES Materials and services Debt Service: Principal Interest Bond issuance cost Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Refunding bonds issued Premium on refunding bonds Payment to refunded bond escrow agent Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Redmond PERS Series Welcome Bend Library Building 1994 2002 and Center CSD General COPs 2004 1988/98 COPs Obligation $ - $ - $ - $ 605,724 1,039 3,706 2,149 8,080 - 718,052 - - 1,039 721,758 2,149 613,804 625 - 1,280 - 30,000 25,583 110,000 485,000 11,200 726,437 42,712 207,060 . v~,vw IJJ,.7c7L V.74,VOV (40,786) (30,262) (151,843) (78,256) 40,600 70,408 160,000 - 40,600 70,408 160,000 - (186) 40,146 8,157 (78,256) 65,070 347 152,476 166,176 $ 64,884 $ 40,493 160,633 $ 87,920 -97- Continued Exhibit of DESCHUTES COUNTY, OREGON NONMAJOR DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 Redmond Sunriver Total Non- Library CSD Library CSD Major Debt General General Service Obligation Obligation Funds REVENUES Local Taxes-Property Investment earnings and rent Charges for services Total revenues EXPENDITURES Materials and services Debt Service: Principal Interest Bond issuance cost Total expenditures Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Refunding bonds issued Premium on refunding bonds Payment to refunded bond escrow agent Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit A Page 111 of ~ -98- $ 178,912 $ 92,608 $ 2,839,112 2,392 1,069 709,118 - 1,115,294 181,304 93,677 4,663,524 7,685 109,899 50,000 3,561,475 75,101 44,925 3,334,145 - 53,280 185,000, 94,925 6,956,585 (3,696) (1,248) (2,293,061) 2,247,804 1,790,000 3,514 (1,953,354) 2,087,964 (3,696) (1,248) (205,097) 13,808 11,635 1,843,771 $ 10,112 $ 10,387 $ 1,638,674 DESCHUTES COUNTY, OREGON NONMAJOR CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 La Pine Local General Building Newberry Improvement County Purchase / Neighborhood District Projects Remodel REVENUES Local Taxes-Property $ - $ - $ 466,940 $ - Investment earnings and rent 6,368 10,996 560,475 6,452 Charges for services - 232,190 - - Other 14,842 - Intergovernmental Federal 245,468 - - - Total revenues 266,678 243,186 1,027,415 6,452 EXPENDITURES Capital outlay 1,386,621 611,793 340,669 23,635 Excess (deficiency) of revenues over expenditures (1,119,943) (368,607) 686,746 (17,183) OTHER FINANCING SOURCES (USES) Transfers in from other funds - - - _ Transfer out to other funds (63,505) - (1,098,414) - Issuance of debt - 370,000 822,228 - Discount on debt - - (1,574) - Total other financing sources (uses) (63,505) 370,000 (277,760) - Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (1,183,448) 1,393 408,986 (17,183) Fund balance - Beginning of year 918,204 466,001 553,102 303,686 Fund balance - End of year $ (265,244) $ 467,394 $_962=088 $ 286,503 Continued -99- Exhibit P_ Page //,F of 1 DESCHUTES COUNTY, OREGON NONMAJOR CAPITAL PROJECTS FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2005 Total Non- Major Capital Remodel Courthouse Projects Projects Remodel Funds REVENUES Local Taxes-Property Investment earnings and rent Charges for services Other Intergovernmental Federal Total revenues EXPENDITURES Capital outlay Excess (deficiency) of revenues over expenditures OTHER FINANCING SOURCES (USES) Transfers in from other funds Transfer out to other funds Issuance of debt Discount on debt Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit ~ Paged of -100- $ - $ - $ 466,940 40,962 12,909 638,162 - - 232,190 14,842 - - 245,468 40,962 12,909 1,597,602 3,375,244 1,025,222 6,763,184 (3,334,282) (1,012,313) (5,165,582) 600,000 - 600,000 (1,161,919) 1,530,569 2,722,797 - (2,930) (4,504) 600,000 1,527,639 2,156,374 (2,734,282) 515,326 (3,009,208) 2,834,542 - 5,075,535 $ 100,260 $ 515,326 $ 2,066,327 COMBINING PROPRIETARY FUNDS Exhibit Page -pr of This page intentionally left blank. Exhibit P Page J 2 / of~ ' DESCHUTES COUNTY, OREGON SOLID WASTE FUNDS COMBINING STATEMENT OF NET ASSETS JUNE 30, 2005 ' Solid Waste Solid Waste Solid Waste Solid Waste Landfill Landfill Capital Equipment Environmental North Area Operations Closure Postclosure Projects Reserve Remediation Development Total ASSETS Current assets: Cash and cash equivalents $ 626,950 $1,799,783 $ 575,352 $ 722,810 $ 442,097 $ 645,702 $ 2,076,337 $ 6,889,031 Investments, plus accrued interest 1,074,507 3,084,585 986,076 1,238,799 757,695 1,106,647 3,558,563 11,806,872 ' Accounts receivable - 544,948 544,948 Total current assets 2,246,405 4,884,368 1,561,428 1,961,609 1,199,792 1,752,349 5,634,900 19,240,851 Noncurrent assets: Capital assets: Land 347,703 154,800 - 502,503 Construction in progress - - - - - 1,229,376 1,229,376 Land Improvements 2,205,655 - 3,027,365 - 5,233,020 Buildings and improvements, net 194,854 - - 275,939 - - - 470,793 Equipment (3,436) 282,171 1,083,631 808,437 2,170,803 ' Vehicles 78,499 78,499 Deferred financing costs _ 131,984 131,984 Total noncurrent assets 2,955,259 282,171 4,541,735 808,437 1,229,376 9,816,978 ' Total assets _ 5,201,664 5,166,539 1,561,428 6,503,344 2,008,229 1,752,349 6,864,276 29,057,829 LIABILITIES Current liabilities: Accounts payable 162,616 31,250 - - 193,866 ' Interest payable 21,308 21,308 Bonds and notes payable 124,720 124,720 Total current liabilities _ 308,644 31,250 339,894 Noncurrent liabilities ' Bonds and notes payable 5,842,352 - - - - - 5.842,352 Premium on bonds payable 44,747 - - - 44,747 Accrued compensated leave 107,524 - - - - - - 107,524 Accrued closure / postclosure 9,376,317 9,376,317 Total noncurrent liabilities 15,370,940 15,370,940 Total liabilities 15,679,584 31,250 15,710,834 NET ASSETS Invested in capital assets, net of related debt (3,143,797) 282,171 4,541,735 808,437 - 1,229,376 3,717,922 Unrestricted 7,3( 34,123) 4,884,368 1,561,428 1,930,359 1,199,792 1,752,349 5,634,000 9,629,073 Total net assets liN 4, 77,920) $5,166,539 $1,561,428 $6,472,094 $ 2,008,229 $ 1,752,349 $ 6,864,276 $ 13,346,995 -103- Exhibit A Page 12,2_ of,9,M- DESCHUTES COUNTY, OREGON FAIR & EXPO CENTER FUNDS COMBINING STATEMENT OF NET ASSETS JUNE 30, 2005 Fair & Expo Fairgrounds Fair & Expo Annual Fair & Expo Center G.O. Bonds Center County Fair Construction Reserve Debt Service Total ASSETS Current assets: Cash and cash equivalents $ 147,859 $ 35,396 $ 912,017 $ 146,275 $ 95,168 $ 1,336,715 Investments, plus accrued interest 251,709 60,663 1,563,074 250,696 163,105 2,289,247 Accounts receivable 10,097 - - - - 10,097 Taxes receivable - - - - 76,761 76,761 Prepaid items - 127,292 - - - 127,292 Total current assets 409,665 223,351 2,475,091 396,971 335,034 3,840,112 Noncurrent assets: Capital assets: Land 132,685 - - - - 132,685 Land improvements 7,258,436 - - - - 7,258,436 Building and improvements 18,728,272 - - - - 18,728,272 Equipment and vehicles 632,300 - - - 632,300 Total capital assets 26,751,693 - - - - 26,751,693 Other- deferred financing costs 55,256 - - - 1,443,266 1,498,522 Total assets 27,216,614 223,351 2,475,091 396,971 1,778,300 32,090,327 LIABILITIES Current liabilities: Accounts payable 42,841 5,735 7,395 - - 55,971 Unearned revenues 187,997 193,961 - - - 381,958 Interest payable 53,163 - - - 81,663 134,826 Bonds and notes payable 85,331 - - - 1,075,000 1,160,331 Total current liabilities 369,332 199,696 7,395 - 1,156,663 1,733,086 Noncurrent liabilities Bonds and notes payable 3,314,014 - - - 21,155,000 24,469,014 Discount on bonds payable (5,336) - - - - (5,336) Premium on bonds payable 746 - - - 699,938.00 700,684 Accrued compensated leave 82,828 14,760 - - - 97,588 Total noncurrent liabilities 3,392,252 14,760 - - 21,854,938 25,261,950 Total liabilities 3,761,584 214,456 7,395 - 23,011,601 26,995,036 NET ASSETS Invested in capital assets, net of related debt 26,139,240 - - - (22,230,000) 3,909,240 Unrestricted (2,684,210) 8,895 2,467,696 396,971 996,699 1,186,051 Total net assets $ 23,455,030 $ 8,895 $ 2,467,696 $ 396,971 $(21,233,301) $ 5,095,291 Exhibit Page / 2~ of -104- ' DESCHUTES COUNTY, OREGON NONMAJOR INTERNAL SERVICE FUNDS COM BINING STATEMENT OF NET ASSETS JUNE 30, 2005 ' Health Total Intern I Building Administrative Information Beneflts Services Services Services Finance Legal Personnel Technology IT Reserve Insurance Trust Funds ASSETS Current assets: Cash and cash equivalents $ 130,390 $ 3,190 $ 142,413 $ 20,827 $ 101,090 $ 172,080 $ 13,688 $ 641,809 $ 1,668,668 $ 2,894,155 Investments, plus accrued Interest 223,471 5,467 244,076 35,694 173,254 294,922 23,459 1,099,975 2,859,873 4,960,191 Accounts receivable 11,041 - - - 8,659 - 9,056 52,272 81,028 Prepaid Items 3,300 3,300 ' Total current assets 364,902 11,957 386,489 56,521 274,344 475,661 37,147 1,750,840 4,580,813 7,938,674 Noncurrent assets: Notes receivable - - - - 158,538 158,538 Capital assets: Land Improvements 89,069 - - - 89,069 ' Equipment and vehicles, net 138,739 34,449 82,087 229,337 2,321 486,933 Total noncurrent assets 227,808 34,449 82,087 229,337 160,859 734,540 Total assets 592,710 11,957 420,938 56,521 274,344 557,748 266,484 1,911,699 4,580,813 8,673,214 LIABILITIES ' Current liabilities: Accounts payable 59,070 3,628 9,098 1,277 33,061 2,594 - 84,949 1,178 194,855 Unearned revenue 24,721 - - - _ - - 24,721 Accrued compensated leave 74,576 16,240 96,013 38,945 48,003 178,262 42,203 7,438 501,680 Accrued claims payable 859,487 809,567 1,669,054 ' Total current liabilities 158,367 19,868 105,111 40,222 81,064 180,856 986,639 818,183 2,390,310 Noncurrent liabilities Bonds, notes and COPS payable _ - - 158,538 - 158,538 Total liabilities 158,367 19,888 105,111 40,222 81,064 180,856 158,538 986,639 818,183 2,548,848 NET ASSETS Invested in capital assets, net of related debt 227,808 34,449 - - 82,087 2,321 346,665 Unrestricted 206,535 (7,911) 281,378 16,299 193,280 294,805 107,946 922,739 3,762,630 5,777,701 . Total net assets $ 434,343 $ (7,911) $ 315,827 $ 16,299 $ 193,280 $ 376,892 $ 107,946 $ 925,060 $ 3,762,630 $ 6,124,366 -105- Exhibit ~ Page of j DESCHUTES COUNTY, OREGON SOLID WASTE FUNDS COMBING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Solid Waste Solid Waste SW North Solid Waste Landfill Landfill Post- Capital Equipment Environmental Area Operations Closure Closure Projects Reserve Remadiation Development Total OPERATING REVENUES Charges for services $ 7,043,816 $ $ $ $ $ $ $ 7,043,816 Miscellaneous 58,408 58,408 Total operating revenues 7,102,224 7,102,224 OPERATING EXPENSES Personnel 1,345,895 - 1,345,895 Materials and services 2,575,184 9,193 2,584,377 Landfill ciosurelpostciosure care costs 540,950 - - 540,950 Depreciation 556,692 - - - 556,692 Total operating expenses 5,018,721 9,193 5,027,914 Operating Income poss) 2,083,503 (9,193) 2,074,310 NONOPERATING REVENUES (EXPENSES) Investment earnings 54,591 97,298 29,984 28,730 11,197 37,137 117,696 376,633 Amortization of bond Issue costs (4,714) - - - - - - (4,714) Interest expense (257,138) - - - (2,034) (259,172) Interfund transfer of assets (671) - - - - (671) Gain (loss) on equipment disposition 90,857 - (135,873) (45,016) Total nonoperating revenues (expenses), net (117,075) 87,298 29,984 28,730 9,183 37,137 (18,177) 67,060 Income Boss) before transfers 1,966,428 97,298 29,984 28,730 (30) 37,137 (18,177) 2,141,370 Transfers in (out) (2,850,000) 400,000 200,000 1,000,000 1,100,000 150,000 Change in net assets (883,572) 497,298 229,984 1,028,730 1,099,970 37,137 131,823 2,141,370 Total net assets - Beginning of year (9,594,348) 4,669,241 1,331,444 5,443,364 908,259 1,715,212 6,732,453 11,205,625 Total net assets - End of year $ (10,477,920) $ 5,166,539 $ 1,561,428 $ 6,472,094 $ 2,008,229 $ 1,752,349 $ 6,864,276 $ 13,346,995 Exhibit -106- Page 1,aS_ of P-~ 01 ' DESCHUTES COUNTY, OREGON FAIR & EXPO CENTER FUNDS ' COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHA NGES IN FUND ASSETS FOR THE YEAR ENDED JUNE 30, 2005 ' Fair and Fairgrounds Total Fair & Fair and Expo Annual Fair & Expo Expo Center G.O. Bonds Expo Center Center County Fair Construction Reserve Debt Service Funds OPERATING REVENUES Charges for services $ 1,046,280 - $ 859,560 $ $ - - $ $ 1,905,840 Total operating revenues 1,046,280 859,560 - 1,905,840 OPERATING EXPENSES Personnel 691,513 - 136,671 - - 828,184 Materials and services 687,993 558,992 286,070 - - 1,533,055 Depreciation 708,092 - - - - 708,092 ' Total operating expenses 2,087,598 695,663 286,070 - - 3,069,331 Operating income (loss) (1,041,318) 163,897 (286,070) - - (1,163,491) NONOPERATING REVENUES (EXPENSES) ' Grants 35,355 40,141 - - - 75,496 Property taxes - - - - 1,904,154 1,904,154 Investment earnings 5,212 1,687 25,266 7,435 11,521 51,121 Amortization of debt issuance costs (79) (131,206) (131,285) Interest expense (69,284) (935,771) (1,005,055) Total nonoperating revenues (expenses), net (28,796) 41,828 25,266 7,435 848,698 894,431 ' Income (loss) before transfers (1,070,114) 205,725 (260,804) 7,435 848,698 (269,060) Capital transfers (2,728,500) - 2,728,500 - - - Transfers in 873,685 - - 91,006 - 964,691 ' Transfers out (91,006) (191,000) - - - (282,006) Change in net assets (3,015,935) 14,725 2,467,696 98,441 848,698 413,625 Total net assets - Beginning of year 26,470,965 (5,830) - 298,530 (22,081,999) 4,681,666 ' Total net assets - End of year $ 23,455,030 $ 8,895 $ 2,467,696 $ 396,971 $ (21,233,301) $ 5,095,291 -107- Exhibit i, Page la, of DESCHUTES COUNTY, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN THE FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Depreciation Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Rents Interest expense Interfund transfer of assets Gain (Loss) on disposition of capital assets Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in Transfers out Change in net assets Total net assets - Beginning of year Total net assets - End of year Health Total Internal Building Administrative Information Benefits Services Services Services Finance Legal Personnel Technology IT Reserve Insurance Trust Funds $1,668,836 $ 437,896 $1,036,986 $509,921 $ 552,019 $1,662,409 $ 210,681 $1,606,713 $ 9,367,682 $17,053,143 1,745 1,745 1,668,836 437,896 1,036,986 509,921 552,019 1,662,409 210,681 1,608,458 9,367,682 17,054,888 1,070,340 357,686 620,319 460,137 335,981 1,410,608 369,507 113,230 4,737,808 593,111 84,436 280,941 51,025 235,934 268,382 253,536 1,223,987 7,492,437 10,483,789 41,253 60,859 62,082 99,894 5,687 269,775 1,704,704 442,122 962,119 511,162 571,915 1,741,072 353,430 1,599,181 7,605,667 _15491372 35,868 (4,228) 74,867 (1,241 (19,896 78,663 (142,749 9,277 1,762,015 1,563,518 6,454 482 6,276 1,467 6,164 11,199 5,848 37,660 79,016 154,566 9,036 - - - - - 9,036 - (3,385) - (3.365) 11,718 7,411 2,083 21,212 (656) 400 (256) 26,552 482 6,676 1,467 6,164 18,610 2,463 39,743 79,016 181,173 (9.316) (3,744) 81,543 226 (13,732) (60,053) (140,286) 49,020 1,841,031 1,744,689 44,000 45,000 10,000 46,164 420,000 - 565,164 (420,000 (420,000) 34,684 41,256 81,543 10,226 (13,732) (13,889) (140,286) 469,020 1,421,031 1,889,853 399,659 (49,167) 234,284 6,073 207,012 390,781 248,232 456,040 2,341,599 4,234,513 $ 434,343 $ (7,911) $ 315,827 $ 16,299 $ 193.280 $ 376,892 $ 107,946 $ 925.060 $ 3,762,630 $ 6,124,366 -108- Exhibit A Page >a-7 of DESCHUTES COUNTY, OREGON SOLID WASTE FUNDS COMBINING STATEMENT OF CASH F LOWS FOR THE YEAR ENDED JUNE 30, 2005 Solid Waste Solid Waste Solid Waste Solid Waste Landfill Landfill Capital Equipment Environmental North Area Operations Closure Postclosure Projects Reserve Remediation Development Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 7,014,683 $ $ $ $ $ $ $ 7,014,683 Payments to employees (1,333,596) (1,333,596) Payments to suppliers (2,490,905) - (9,193) (2,500,098) Other receipts 58,408 _ 58,408 Net cash provided (used) by operating activities 3,248,590 9193 3,239,397 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Sale of capital assets 525 - 525 Interfund transfers, net (2,650,000) 400,000 200,000 1,000,000 1,100,000 150,000 ' Net cash provided by noncapital financing activities (2,849,475) 400,000 200,000 1,000,000 1,100,000 150,000 525 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (113,136) - - (879,086) (458,684) - (62,839) (1,513,745) Principal paid on capital debt (121,683) - - (103,370) (225,053) ' Interest paid on capital debt (259,345) (2,444) _ (261,789) Net cash provided (used) by capital and related financing activities (494,164)_ 879086 (564,498) (62,839) ) (2,000,687 CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of Investments (122,270) (684,739) (257,528) (247,754) (394,167) (168,801) (589,284) (2,464,543) ' Interest 54,956 96,611 29,563 28,595 9,853 37,290 117,946 374,814 Net cash provided (used) by investing activities (67,314) (588,128) (227,965) (219,159) (384,314) (131,511) (471,338) (2,089,729) Net increase (decrease) in cash and cash equivalents (162,363) (188,128) (27,965) (98,245) 141,995 (131,511) (384,177) (850,394) ' Balances - Beginning of year 789,314 1,987,911 603,317 821,055 300,102 777,213 2,460,513 7,739,425 Balances - End of year $ 626,950 $ 1,799,783 $ 575,352 $ 722,810 $ 442,097 $ 645,702 $ 2,076,337 $ 6,889,031 Reconciliation of operating Income poss) to net cash provided (used) by operating activities: Operating income (loss) $ 2,083,503 $ $ $ $ (9,193) $ $ $ 2,074,310 Adjustments to reconcile operating Income to net cash provided (used) by operating activities: Depreciation expense 556,692 - - 556,692 Change in assets and liabilities Receivables, net - (29,132) (29,132) Accounts and other payables 637,527 637,527 Net cash provided (used) by operating activities $ 3,248,590 $ $ $ $ (9,193) $ $ - $ 3,239,397 -109- Exhibit-L- Page /,3 R-of ~$~1 DESCHUTES COUNTY, OREGON FAIR & EXPO CENTER FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2005 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to employees Payments to suppliers Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Property taxes Grants Interfund transfers in Interfund transfers out Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Loan proceeds Bond issuance costs Discount on loans Principal paid on capital debt Interest paid on capital debt Net cash provided (used) by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of investments Interest . . Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense Change in assets and liabilities Receivables, net Prepaid items Accounts and other payables Net cash provided (used) by operating activities Exhibit P Page /2 of Fair & Expo Fairgrounds Fair & Expo Annual Fair & Expo Center G.O. Bonds Center County Fair Construction Reserve Debt Service Total $ 1,177,535 $ 872,830 $ - $ - $ - $ 2,050,365 (679,011) (139,125) - - - (818,136) (666,868 (572,285 (278,676) - (1,517,829 (168,344 161,420 (278,676) - - (285,600) - - - - 1,913,434 1,913,434 35,355 40,141 - - - 75,496 491,000 - - 91,006 - 582,006 91006 191,000 - - (282,006) 435,349 (150,859) 91,006 1,913,434 2,288,930 (35,718) - - - - (35,718) - - 2,786,892 - - 2,786,892 - - (53,056) - - (53,056) - - (5,336) - - (5,336) (14,430) - - - (960,000) (974,430) (28,703) (1,003,294 (1,031,997 78,851 2,728,500 (1,963,294) 686,355 (138,997) (14,809) (1,556,437) (87,219) (1,043) (1,798,506) 4,724 1,667 18,630 7,215 11,668 43,904 (134,273) 13142 (1,537,807) (80,004) 10,625 (1,754,602 ) 53,881 (2,581) 912,017 11,002 (39,235) 935,083 93,980 37,977 135,273 134,403 401,633 $ 147,859 $ 35,396 $ 912,017 $ 146,275 $ 95,168 $ 1,336,715 $(1,041,318) $ 163,897 $ (286,070) $ - $ - $(1,163,491) 708,092 - - - - 708,091 12,979 - - - - 12,979 - (15,790) - - - (15,790) 151,903 13,313 7,395 172,611 $ 168,344 $ 161,420 $ (278,675 ) $ $ $ 285600 -110- DESCHUTES COUNTY, OREGON INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2005 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to employees Payments to suppliers Internal activity - payments from olher funds Other receipts Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Rents Interfund transfers in Interfund transfers out Net cash provided by noncepital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Principal paid on capital debt Interest paid on capital debt Net cash used by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES Sale (purchase) of Investments Interest Net cash provided (used) by Investing activities Net increase (decrease) in cash and cash equivalents Balances - Beginning of year Balances - End of year Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Operating income (loss) Adjustments to reconcile operating Income to net cash provided (used) by operating activities: Depreciation expense Change in assets and liabilities Receivables, net Prepaid expenses Accounts and other payables Net cash provided (used) by operating activities Health Building Administrative Information Benefits Services Services Finance Legal Personnel Technology IT Reserve Insurance Trust Total $ 76,777 S 2,550 $ 127,382 E 2,974 $ 2,770 E 80,212 $ 681 $ 16,766 $1,495,488 $ 1,805,600 (1,069,594) (394,971) (616,787) (458,336) (339,784) (1,444,039) (360,201) (11,192) (4,694,904) (602292) (90,180) (277,344) (52,762) (211,642) (293,804) (270,406) (1,997,693) (7,641,703) (11,337,826) 1,567,557 437,846 909,604 506,947 549,249 1,591,789 210,000 1,580,908 7,874,219 15,228,119 400 1,745 2,145 (27,552) (44.755) 143,265 0.1 593 (65,842 (59,725 (758,475) 1,816,811 1,003,133 9,036 9,036 44,000 45,000 10,000 46,164 420,000 - 565,164 (420,000 ) (420,000) 53,036 45,000 10,000 46,164 420,000 4( 20,000) 154200 (198,992) (198,992) (81,463) (81,463) (3,385) (3,385) (283,640 (283,840) (47,383) (1,129) (114,124) (10,391) (26,940) (34,989) 180,582 53,099 (1,186,926) (1,188,202) 6,415 481 51910 1,446 6,185 11,292 61809 38,637 75,508 . 152,583 (40,968) (648) (108,214 8945 (20,755) (23.697) 187,391 91,636 1111419 _(1,035,619) (15,484) (403) 35,041 (122) (20,162) (43,375) (156,174) (246,839) 285,392 (162,126) 145,873 3,594 107,373 20,949 121,252 215,454 169,862 888,649 1,363,275 3,056,281 $ 130,390 $ 3,190 142,413 20,827 101,090 $ 172,080 13,688 $ 641,809 $1,668,668 $ 2,894,155 S (35,868) $ (4,226) $ 75,265 $ (1,241) $ (19,896) $ (78,663) $ (142,749) $ 9,277 $1,762,015 $ 1,563,914 41,253 60,859 - 62,082 99,894 5,667 269,775 (913) 2,500 9,592 (9,040) (50,247) (48,108) (3,300) (3.300) (32,024 (39,729) 7,131 64 20,489 (58,853) (16,;70) (764.398) 105,043 (779,148) (27,552 $ (44,755) 143,255 (11,11 593 $ (65,842) $ (59,726 (758,47 5 $7,816.811 1,003,133 -111- Exhibit 14 Page /30 of 11 This page intentionally left blank. Exhibit R Page /3 of BUDGETARY COMPARISON SCHEDULES SCHEDULES OF REVENUES, EXPENDITURES/EXPENSES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Exhibit Page 13,;k, of ')-SOL This page intentionally left blank. Exhibit P, Page 133 of egg DESCHUTES COUNTY, OREGON BUSINESS LOAN FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with ' Budget Final Budget Actual Final Budget REVENUES Local Interest and rents $ 3,000 $ 3,000 $ 1,155 $ (1,845) Other 70,000 70,000 111,601 41,601 Total revenues 73,000 73,000 112,756 39,756 ' EXPENDITURES Personnel services 14,905 15,905 15,023 882 Materials and services 127,995 126,995 84,751 42,244 Capital outlay 100 100 100 Total expenditures 143,000 143,000 99,774 43,226 Excess (deficiency) of revenues over expenditures (70,000) (70,000) 12,982 82,982 ' Fund balance - Beginning of year 70,000 70,000 308,734 238,734 Prior period adjustment - long-term interfund loan - - (250,000) (250,000) Beginning fund balance, as adjusted 70,000 70,000 58,734 (11,266) Fund balance - End of year $ - $ - $ 71,716 $ 71,716 -115- Exhibit IA_ Page of DESCHUTES COUNTY, OREGON COMMUNITY DEVELOPMENT BLOCK GRANT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Intergovernmental State Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers to other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Original Variance with Budget Final Budget Actual Final Budget $ - $ - $ 101 $ 101 1,100,000 1,100,000 533,906 (566,094) 1,100,000 1,100,000 534,007 (565,993) 1,000 591,000 31,682 559,318 1,099,000 508,900 503,890 5,010 1,100,000 1,099,900 535,572 564,328 100. 1 (1,565) (1,665) (100) - 100 (100) - 100 (1,565) (1,565) 2,358 2,358 $ - $ - $ 793 $ 793 -116- Fund balance - Beginning of year Fund balance - End of year Exhibit n- Page 4v 5 of a DESCHUTES COUNTY, OREGON CULTURAL COALITION FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Intergovernmental State Total revenues EXPENDITURES Materials and services Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ - $ - $ 62 $ 62 7,000, 6,624 (376) 7,000 6,686 (314) 7,000 3,000 4,000 7,000 3,000 4,000 3,686 3,686 $ - $ $ 3,686 $ 3,686 -117- Exhibit A Page 13_~_, of 2_, DESCHUTES COUNTY, OREGON GRANT PROJECTS SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Intergovernmental Local State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Exhibit 1g" Page j ;7 of q Original Variance with Budget Final Budget Actual Final Budget $ 200 $ 200 $ 462 $ 262 70,000 70,000 70,000 - 70,000 70,000 - (70,000) - - 14,203 14,203 100,000 100,000 - (100,000) 240,200 240,200 84,665 (155,535) 63,291 70,291 68,574 1,717 173,771 166,771 16,541 150,230 100 100 - 100 237,162 237,162 85,115 152,047 13,038 13,038 - 13,038 250,200 250,200 85,115 165,085 (10,000) (10,000) (450) 9,550 10,000 10,000 18,246 8,246 $ - $ - $ 17,796 $ 17,796 -118- DESCHUTES COUNTY, OREGON JUSTICE COURT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS ' FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Original Variance with Budget Final Budget Actual Final Budget $ 600 $ 600 $ 566 $ (34) 600 600 566 (34) 344,842 344,842 282,570 62,272 113,429 119,429 109,201 10,228 100 100 - 100 458,371 464,371 391,771 72,600 18,757 12,757 - (12,757) 477,128 477,128 391,771 59,843 Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year (476,528) (476,528) (391,205) 85,323 421,528 421,528 421,528 - 421,528 421,528 421,528 - (55,000) (55,000) 30,323 85,323 55,000 55,000 53,192, (1,808) $ - $ - $ 83,515 $ 83,515 -119- Exhibit A Page /3c~of DESCHUTES COUNTY, OREGON LA PINE INDUSTRIAL SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Other Total revenues EXPENDITURES Materials and services Total expenditures Excess (deficiency) of revenues . over expenditures Fund balance - Beginning of year Fund balance - End of year Exhibit A Page of ~ok Original Variance with Budget Final Budget Actual Final Budget $ - $ - $ 14,447 $ 14,447 500,000 500,000 187,123 (312,877) 500,000 500,000 201,570 (298,430) 500,000 500,000 194,292 305,708 500,000 500,000 194,292 305,708 7,278 7,278 - 122 122 $ - $ - $ 7,400 $ 7,400 -120- DESCHUTES COUNTY, OREGON LA PINE SENIOR CENTER FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Other Total revenues EXPENDITURES Personnel Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ - $ - $ 4,884 $ 4,884 1,600,000 562,741 (1,037,259) 1,600,000, 567,625 (1,032,375) 100 - 100 100 - 100 1,599,800 25,549 1,574,251 1,600,000 25,549 1,574,451 542,076 542,076 $ - $ 542,076 $ 542,076 -121- Exhibit A Page /4Q of aS DESCHUTES COUNTY, OREGON PARK ACQUISITION AND DEVELOPMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Licenses and Permits Interest and rents Intergovernmental State Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 25,000 $ 25,000 $ 42,700 $ 17,700 6,000 6,000 14,392 8,392 50,000 50,000 97,143 47,143 81,000 81,000 154,235 73,235 52,000 52,000 42,560 9,440 649,000 649,000 96,924 552,076 701,000 701,000 139,484 561,516 (620,000) (620,000) 14,751 634,751 620,000 620,000 615,094 (4,906) $ - $ - $ 629,845 $ 629,845 -122- Exhibit lk Page /4 / of a~~ DESCHUTES COUNTY, OREGON PERS RESERVE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 20,000 $ 20,000 $ 84,634 $ 64,634 2,143,664 2,143,664 2,071,440 (72,224) 2,163,664 2,163,664 2,156,074 (7,590) 100 1,700 850 850 100 1,700 850 850 4,853,270 4,851,670 - 4,851,670 4,853,370 4,853,370 850 4,852,520 (2,689,706) (2,689,706) 2,155,224 4,844,930 (70,408) (70,408) (70,408) - (70,408) (70,408) (70,408) - (2,760,114) (2,760,114) 2,084,816 4,844,930 2,760,114 2,760,114 3,011,984 251,870 $ - $ - $ 5,096,800 $ 5,096,800 -123- Exhibit t4k Page /4 2 of ` DESCHUTES COUNTY, OREGON COUNTY SCHOOL FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Fines, forfeitures and penalties Interest and rents Intergovernmental State Federal Total revenues EXPENDITURES Materials and services Total expenditures Other financing sources (uses) Appropriation transfer Total other financing sources (uses) Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ - $ - $ 335 $ 335 600 600 1,327 727 159,175 159,175 160,750 1, 575 985,799 985,799 989,156 3,357 1,145,574 1,145,574 1,151,568 5,994 1,145,574 1,151,574 1,151,264 310 1,145,574 1,151,574 1,151,264 310 6,000 6,000 (6,000) (6,000) 304 304 19 19 $ - $ - $ 323 $ 323 -124- Exhibit A- Page /q3 of _&jK DESCHUTES COUNTY, OREGON SPECIAL TRANSPORTATION FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Intergovernmental State Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Appropriation transfer Total other financing sources (uses) Excess (deficiency) of revenue and other ' financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 1,000 $ 1,000 $ 1,856 $ 856 250,000 250,000 333,666 83,666 251,000 251,000 335,522 84,522 246,000 343,000 340,040 2,960 5,000 5,000 - 5,000 251,000 348,000 340,040 7,960 (97,000) (4,518) 92,482 97,000 - (97,000) 97,000 - (97,000) (4,518) (4,518) 19,721 19,721 $ - $ - $ 15,203 $ 15,203 -125- Exhibit P Page'j4A of a~jn DESCHUTES COUNTY, OREGON TAYLOR GRAZING SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Interest and rents $ 200 $ 200 $ 345 $ 145 Intergovernmental State 4,300 4,300 3,767 (533) Total revenues 4,500 4,500 4,112 (388) EXPENDITURES Materials and services 26,000 26,000 15,758 10,242 Total expenditures 26,000 26,000 15,758 10,242 Excess (deficiency) of revenues over expenditures (21,500) (21,500) (11,646) 9,854 Fund balance - Beginning of year 21,500 21,500 14,511 (6,989) Fund balance - End of year $ $ - $ 2,865 2,865 Exhibit A- -126- Page _L4-5 of~ DESCHUTES COUNTY, OREGON TRANSIENT ROOM TAX SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Other Interest and rents Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 2,622,857 $ 2,622,857 $ 2,613,139 $ (9,718) 5,500 5,500 6,656 1,156 2,628,357 2,628,357 2,619,795 (8,562) 541,934 541,934 537,968 3,966 541,934 541,934 537,968 3,966 771 771 - 771 542,705 542,705 537,968 4,737 2,085,652 2,085,652 2,081,827 (3,825) (2,085,652) (2,085,652) (2,079,652) 6,000 (2,085,652) (2,085,652) (2,079,652) 6,000 2,175 2,175 281,252 281,252 $ - $ - $ 283,427 $ 283,427 -127- Exhibit 6 Page Lk of o2g DESCHUTES COUNTY, OREGON VIDEO LOTTERY SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit _F-k-- Page J-4~7- of Original Variance with Budget Final Budget Actual Final Budget $ 2,000 $ 4,000 $ 5,472 $ 1,472 400,000 480,000 435,234 (44,766) 402,000 484,000 440,706 (43,294) 39,749 41,749 40,129 1,620 297,304 409,733 321,197 88,536 100 100 - 100 337,153 451,582 361,326 90,256 148,347 148,347 - 148,347 485,500 599,929 361,326 238,603 (83,500) (115,929) 79,380 195,309 (176,500) (176,500) (176,500) - (176,500) (176,500) (176,500) - (260,000) (292,429) (97,120) 195,309 260,000 292,429 292,058 (371) $ - $ - $ 194,938 $ 194,938 -128- ' DESCHUTES COUNTY, OREGON ' WELCOME CENTER SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS ' FOR THE YEAR ENDED JUNE 30, 2005 REVENUES ' Local Taxes-Other Interest and rents Intergovernmental ' Local State Total revenues ' EXPENDITURES Materials and services ' Total Operating contingency ' Total expenditures Excess (deficiency) of revenues ' over expenditures Other financing sources (uses) ' Transfer out Total other financing sources (uses) ' Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 437,143 $ 437,143 $ 435,523 $ (1,620) 2,500 2,500 2,078 (422) 77,000 77,000 78,783 1,783 - - 6,614 6,614 516,643 516,643 522,998 6,355 355,671 355,671 353,594 2,077 355,671 355,671 353,594 2,077 972 972 - 972 356,643 356,643 353,594 3,049 160,000 160,000 169,404 9,404 (160,000) (160,000) (160,000) - (160,000) (160,000) (160,000) - 9,404 9,404 61,642 61,642 ® ® 71,046 $ 71,046 -129- Exhibit a' Page 1-49 of a_Zq. DESCHUTES COUNTY, OREGON INDUSTRIAL DEVELOPMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Other Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 1,000 $ 1,000 $ 595 $ (405) - - 1,350 1,350 1,000 1,000 1,945 945 46,433 46,433 14,566 31,867 100 100 - 100 46,533 46,533 14,566 31,967 16,335 16,335 - 16,335 62,868 62,868 14,566 48,302 (61,868) (61,868) (12,621) 49,247 61,868 61,868 28,621 (33,247) $ - $ - $ 16,000 $ 16,000 -130- Exhibit 14 Page /q of -24- ' DESCHUTES COUNTY, OREGON LAND SALES MAINTENANCE ' SCHEDULE OF R EVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local ' Interest and rents $ 3,000 $ 3,000 $ 5,767 $ 2 767 Charges for services - 29,394 , 29,394 Total revenues 3,000 3,000 35,161 32,161 ' EXPENDITURES Materials and services 67,672 67,672 27,848 39 824 ' Capital outlay 100 100 - , 100 Total 67,772 67,772 27,848 39,924 Operating contingency 211,955 211,955 - 211,955 Total expenditures 279,727 279,727 27,848 251,879 ' Excess (deficiency) of revenues over expenditures (276,727) (276,727) 7,313 284,040 Fund balance - Beginning of year 276,727 276,727 281,364 4,637 Fund balance - End of year $ - $ - $ 288,677 $ 288 677 ' -131- Exhibit k Page 950 of_aa DESCHUTES COUNTY, OREGON LIQUOR ENFORCEMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Fines, forfeitures and penalties Interest and rents Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 37,500 $ 37,500 $ 46,898 $ 9,398 400 400 993 593 37,900 37,900 47,891 9,991 2,027 2,027 2,027 - 2,027 2,027 2,027 - 36,990 36,990 - 36,990 39,017 39,017 2,027 36,990 (1,117) (1,117) 45,864 46,981 (35,000) (35,000) (35,000) - (35,000) (35,000) (35,000) - (36,117) (36,117) 10,864 46,981 36,117 36,117 40,980 4,863 $ - $ - $ 51,844 $ 51,844 -132- Exhibit AC Page 15 / of DESCHUTES COUNTY, OREGON VICTIMS' ASSISTANCE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Fines, forfeitures and penalties Interest and rents Charges for services Intergovernmental State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess deficiency of revenues over expenditures Other financing sources Transfers in from other funds Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 14,900 $ 14,900 $ 1,488 $ (13,412) 1,400 1,400 333 (1,067) 33,000 33,000 31,325 (1,675) 38,000 38,000 44,224 6,224 23,300 23,300 35,023 11,723 110,600 110,600 112,393 1,793 206,012 212,947 205,901 7,046 51,488 51,488 44,155 7,333 100 100 - 100 257,600 264,535 250,056 14,479 - 4,603 - 4 603 , 257,600 269,138 250 056 19 082 , , (147,000) (158,538) (137,663) 20,875 87,000 133,935 133,935 - (60,000) (24,603) (3,728) 20,875 60,000 24,603 24,558 (45) $ - $ - $ 20,830 $ 20,830 -133- Exhibit A Page ! 52. of a~ft DESCHUTES COUNTY, OREGON LAW LIBRARY SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Exhibit R Page _L ,:j3 of Original Variance with Budget Final Budget Actual Final Budget $ 300 $ 300 $ 1,079 $ 779 1,050 1,050 1,157 107 111,600 111,600 125,856 14,256 112,950 112,950 128,092 15,142 37,747 41,247 39,492 1,755 72,191 68,691 64,577 4,114 109,938 109,938 104,069 5,869 3,012 3,012 - 3,012 112,950 112,950 104,069 8,881 24,023 24,023 30,157 30,157 $ - $ - $ 54,180 $ 54,180 -134- DESCHUTES COUNTY, OREGON COUNTY CLERK RECORDS SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Interfund loan Transfer in Total other financing sources (uses) Excess (deficiency) of revenue and other ' financing sources over (under) expenditures and other financing uses ' Fund balance - Beginning of year Fund balance - End of year 1 Original Variance with Budget Final Budget Actual Final Budget $ 1,000 $ 1,000 $ 3,859 $ 2,859 72,000 72,000 95,088 23,088 73,000 73,000 98 947 25 947 , , 52,930 52,930 7,321 45,609 125,000 125,000 124,800 200 177,930 177,930 132,121 45,809 80,070 80,070 - 80 070 , 258,000 258,000 132 121 125 879 , , (185,000) (185,000) (33,174) 151,826 25,000 25,000 - (25,000) 50,000 50,000 50,000 - 75,000 75,000 50,000 (25,000) (110,000) (110,000) 16,826 126,826 110,000 110,000 148 965 38 965 , , - 165,791 $ 165,791 -135- Exhibit A Page / ~ of 0199 DESCHUTES COUNTY, OREGON COMMISSION ON CHILDREN & FAMILIES SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Other Intergovernmental State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 12,000 $ 12,000 $ 19,478 $ 7,478 17,000 17,000 42,679 25,679 19,662 19,662 7,800 (11,862) 995,518 995,518 889,447 (106,071) 610,224 610,224 646,328 36,104 1,654,404 1,654,404 1,605,732 (48,672) 403,754 409,254 403,628 5,626 2,017,077 2,017,077 1,814,384 202,693 4,500 8,500 4,546 3,954 2,425,331 2,434,831 2,222,558 212,273 325,213 315,713 - 315,713 2,750,544 2,750,544 2,222,558 527,986 (1,096,140) (1,096,140) (616,826) 479,314 576,500 576,500 580,500 4,000 576,500 576,500 580,500 4,000 (519,640) (519,640) (36,326) 483,314 519,640 519,640 641,308 121,668 $ - $ - $ 604,982 $ 604,982 -136- Exhibit A Page /SS of DESCHUTES COUNTY, OREGON COMMUNITY JUSTICE - JUVENILE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Fines, forfeitures, and penalties Interest and rents Charges for services Intergovernmental State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Original Variance with Budget Final Budget Actual Final Budget $ 1,437 $ 1,437 $ 2,482 $ 1,045 39,120 39,120 40,607 1,487 539,453 539,453 571,635 32,182 306,715 306,715 361,729 55,014 185,796 185,796 164,846 (20,950) 1,072,521 1,072,521 1,141,299 68,778 4,461,341 4,486,341 4,410,021 76,320 1,681,716 1,741,716 1,637,300 104,416 100 100 - 100 6,143,157 6,228,157 6,047,321 180,836 195,093 120,093 - 120,093 6,338,250 6,348,250 6,047,321 300,929 (5,265,729) (5,275,729) (4,906,022) 369,707 Other financing sources (uses) Appropriation transfer - 10,000 - (10,000) Transfers in from other funds 4,951,539 4,951,539 4,961,539 10,000 Total other financing sources (uses) 4,951,539 4,961,539 4,961,539 - Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (314,190) (314,190) 55,517 369,707 Fund balance - Beginning of year Fund balance - End of year 314,190 314,190 199,022 (115,168) $ - $ 254,539 $ 254,539 -137- Exhibit Page /S(o of d DESCHUTES COUNTY, OREGON SHERIFF'S ASSET FORFEITURE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Fines, forfeitures, and penalties Interest and rents Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Exhibit P Page 1,!!2 of - Original Variance with Budget Final Budget Actual Final Budget $ 1,500 $ 1,500 $ - $ (1,500) 500 500 1,741 1,241 2,000 2,000 1,741 (259) 4,009 4,009 1,108 2,901 4,009 4,009 1,108 2,901 77,991 77,991 - 77,991 82,000 82,000 1,108 80,892 (80,000) (80,000) 633 80,633 80,000 80,000 81,042 1,042 $ - $ - $ 81,675 $ 81,675 -138- DESCHUTES COUNTY, OREGON COURT FACILITIES SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Fines, forfeitures, and penalties Interest and rents Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues . over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 76,900 $ 76,900 $ 84,445 $ 7,545 405 405 442 37 77,305 77,305 84,887 7,582 112,305 112,305 112,305 112,305 112,305 - 112,305 - (35,000) (35,000) (27,418) 7,582 35,000 35,000 35,663 663 $ - $ 8,245 $ 8,245 -139- Exhibit Page IS~of a8ra DESCHUTES COUNTY, OREGON DESCHUTES COUNTY COMMUNICATION SYSTEM SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers out to other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit P' Page 1~ of - $ - $ - $ 2,573 $ 2,573 503,104 578,104 549,368 (28,736) 503,104 578,104 551,941 (26,163) 280,983 222,983 138,008 84,975 300,028 433,028 411,675 21,353 581,011 656,011 549,683 106,328 3,577 3,577 - 3,577 584,588 659,588 549,683 109,905 (81,484) (81,484) 2,258 83,742 (79,216) (79,216) (79,216) - (79,216) (79,216) (79,216) - (160,700) (160,700) (76,958) 83,742 160,700 160,700 180,760 20,060 $ - $ - $ 103,802 $ 103,802 -140- DESCHUTES COUNTY, OREGON SHERIFF'S CAPITAL RESERVE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues ' EXPENDITURES Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) ..,.-..-Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 5,000 $ 5,000 $ 13,522 $ 8,522 5,000 5,000 13,522 8,522 708,000 708,000 - 708,000 708,000 708,000 - 708,000 (703,000) (703,000) 13,522 716,522 208,000 208,000 220,605 12,605 208,000 208,000 220,605 12,605 (495,000) (495,000) 234,127 729,127 495,000 495,000 496,567 1,567 $ - $ - $®730,694 $ 730,694 -141- Exhibit Pr Page Lo 0 of _01. DESCHUTES COUNTY, OREGON ' HEALTH DEPARTMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET 1 BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Other Intergovernmental Local State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget ' $ 9,400 $ 9,400 $ 19,292 $ 9,892 382,605 382,605 441,884 59,279 12,550 12,550 11,741 (809) 10,400 10,400 19,544 9,144 2,030,989 2,172,765 2,302,967 130,202 3,000 3,000 - (3,000) 2,448,944 2,590,720 2,795,428 204,708 3,408,802 3,426,475 3,228,470 198,005 1,161,779 1,282,543 1,238,185 44,358 27,250 70,589 49,474 21,115 4,597,831 4,779,607 4,516,129 263,478 353,846 313,846 - 313,846 4,951,677 5,093,453 4,516,129 577,324 (2,502,733) (2,502,733) (1,720,701) 782,032 2,289,411 2,289,411 2,289,411 - (150,000) (150,000) (150,000) - 2,139,411 2,139,411 2,139,411 - (363,322) (363,322) 418,710 782,032 663,322 663,322 843,357 180,035 $ 300,000 $ 300,000 $ 1,262,067 $ 962,067 -142- Exhibit pr Page / 4e of ~0, DESCHUTES COUNTY, OREGON HEALTHYSTART-PRENATAL SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Other Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Original Variance with Budget Final Budget Actual Final Budget $ 600 $ 600 $ 3,626 $ 3,026 302,817 302,817 306,714 3,897 - - 63 63 1.17,000 127,099 143,636 16,537 420,417 430,516 454,039 23,523 78,815 88,914 76,182 12,732 366,602 370,302 352,212 18,090 100 100 - 100 445,517 459,316 428,394 30,922 151,289 147,589 - 147,589 596,806 606,905 428,394 178,511 Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year (176,389) (176,389) 25,645 202,034 61,389 61,389 61,389 - 61,389 61,389 61,389 (115,000) (115,000) 87,034 202,034 115,000 115,000 164,121 49,121 $ - $ - $ 251,155 $ 251,155 -143- Exhibit 1) Page% of DESCHUTES COUNTY, OREGON ABHA ACCOUNTABLE BEHAVIORAL HEALTH ALLIANCE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Intergovernmental State Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 5,000 $ 5,000 $ 7,296 $ 2,296 2,283,768 2,283,768 2,546,072 262,304 2,288,768 2,288,768 2,553,368 264,600 2,185,080 2,185,080 2,185,080 - 2,185,080 2,185,080 2,185,080 - 195,688 195,688 - 195,688 2,380,768 2,380,768 2,185,080 195,688 (92,000) (92,000) 368,288 460,288 (318,000) (318,000) (318,000) - (318,000) (318,000) (318,000) - (410,000) (410,000) 50,288 460,288 410,000 410,000 4361509 26,509 $ - $ - $ 486,797 $ 486,797 -144- Exhibit Pf Page /43 ofg'%~N DESCHUTES COUNTY, OREGON ACUTE CARE SERVICES SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Intergovernmental State Total revenues EXPENDITURES Materials and services Total Excess (deficiency) of revenues over expenditures Other financing sources (uses) Proceeds from LLC Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ - $ - $ 848 $ 848 450,000 450,000 - 450,848 450,848 450,848 450,848 290,000 290,000 290,000 290,000 740,848 740,848 $ - $ 740,848 $ 740,848 -145- Exhibit- Page L(Q 4 of ';oLl DESCHUTES COUNTY, OREGON OHP - CHEMICAL DEPENDENCY SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Budget Final Budget REVENUES Local Interest and rents Intergovernmental State Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit Page / &5 of Variance with Actual Final Budget $ 200 $ 200 $ 2,855 $ 2,655 280,000 466,524 514,051 47,527 280,200 466,724 516,906 50,182 280,283 435,841 427,213 8,628 280,283 435;841 427,213 8,628 24,917 55,883 - 55,883 305,200 491,724 427,213 64,511 (25,000) (25,000) 89,693 114,693 (82,000) (82,000) (82,000) - (82,000) (82,000) (82,000) - (107,000) (107,000) 7,693 114,693 107,000 107,000 99,777 (7,223) $ - $ - $ 107,470 $ 107,470 -146- DESCHUTES COUNTY, OREGON PUBLIC LAND CORNER PRESERVATION SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Licenses and Permits Interest and rents Charges for services Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 500 $ 500 $ 120 $ (380) 4,000 4,000 16,845 12,845 502,500 502,500 697,649 195,149 507,000 507,000 714,614 207,614 418,443 418,443 394,275 24,168 256,590 256,590 156,489 100,101 150,000 150,000 18,947 131,053 825,033 825,033 569,711 255,322 281,967 281,967 - 281 967 , 1,107,000 1,107,000 569,711 537,289 (600,000) (600,000) 144,903 744,903 600,000 600,000 714,130 114 130 , $ - $ - $ 8 59,033 $ 859,033 -147- Exhibit Iq Page 1 & to of ~ DESCHUTES COUNTY, OREGON CODE ABATEMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 400 $ 400 $ 612 $ 212 400 400 612 212 28,922 28,922 391 28,531 28,922 28,922 391 28,531 (28,522) (28,522) 221 28,743 28,522 28,522 28,486 (36) $ - $ - $ 28,707 $ 28,707 -148- Exhibit Page f_( j of .ag0_ DESCHUTES COUNTY, OREGON COMMUNITY DEVELOPMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Fines, forfeitures and penalties Interest and rents Charges for services Other Intergovernmental Local State Federal Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenuers over expenditures Other financing sources (uses) Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other ' financing sources over (under) expenditures and other financing uses ' Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 3,300 $ 3,300 $ 7,481 $ 4,181 3,500 3,500 31,425 27,925 5,033,425 5,033,425 6,003,446 970,021 - - 51,338 51,338 718,977 718,977 1,012,341 293,364 3,000 3,000 - (3,000) 118,000 118,000 87,499 (30,501) 5,880,202 5,880,202 7,193,530 1,313 328 , 4,316,249 4,464,171 4,416,792 47,379 1,090,200 1,202,338 1,204,986 (2,648) 87,300 87,300 18,429 68,871 5,493,749 5,753,809 5,640,207 113,602 422,453 162,393 - 162,393 5,916,202 5,916,202 5,640,207 275,995 (36,000) (36,000) 1,553,323 1,589,323 (200,200) (1,099,677) (1,099,477) 200 (200,200) (1,099,677) (1,099,477) 200 (236,200) (1,135,677) 453,846 1,589,523 236,200 1,135,677 1,132,728 (2,949) $ - $ - $ 1,586,574 $ 1,586,574 -149- Exhibit Page L of aa~~ DESCHUTES COUNTY, OREGON CDD-TDC SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer in Proceeds of sale of assets Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit 14 Page /Co9 of aM Original Variance with Budget Final Budget Actual Final Budget $ 1,000 $ 1,000 $ 2,162 $ 1,162 1,000 1,000 2,162 1,162 12,963 12,963 3,713 9,250 243,019 243,019 22,500 220,519 255,982 255,982 26,213 229,769 (254,982) (254,982) (24,051) 230,931 250,000 250,000 250,000 250,000 (250,000) (250,000) (4,982) (4,982) (24,051) (19,069) 4,982 4,982 116,701 111,719 $ - $ - $ 92,650 $ 92,650 -150- DESCHUTES COUNTY, OREGON COMMUNITY DEVELOPMENT RESERVE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Variance Original with Final Budget Final Budget Actual Budget $ 17,500 $ 17,500 $ 33,128 $ 15,628 17,500 17,500 33,128 15,628 400,000 - 400,000 - 400,000 - 400,000 477,400 536,877 - 536,877 477,400 936,877 - 936,877 (459,900) (919,377) 33,128 952,505 177,400 636,877 459,477 (177,400) (100) (100) - 100 177,300 636,777 459,477 (177,300) (282,600) (282,600) 492,605 775,205 1,287,944 1,287,944 1,536,123 248,179 $__1,005,344 $ . 1 ®4 $ 2,028,728 8,728 $ 1® -151- Exhibit /1q Page jZO of 'Zn DESCHUTES COUNTY, OREGON CDD BUILDING RESERVE PROGRAM SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Variance Original with Final Budget Final Budget Actual Budget $ 6,330 $ 6,330 $ 6,931 $ 601 6,330 6,330 6,931 601 100 100 - 100 100 100 - 100 200 200 - 200 471,693 841,693 - 841,693 471,893 841,893 - 841,893 (465,563) (835,563) 6,931 842,494 100 370,100 370,000 (100) (100) (100) - 100 - 370,000 370,000 - (465,563) (465,563) 376,931 842,494 465,563 465,563 190,441 (275,122) $ - $ - $ 567,372 $ 567,372 -152- Exhibit A Page LV of %C ' DESCHUTES COUNTY, OREGON CDD ELECTR ICAL PROGRAM RESERVE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 ' Variance Original with Final ' Budget Final Budget Actual Budget REVENUES ' Local Interest and rents $ 1,100 $ 1,100 $ 1,204 $ 104 Total revenues 1,100 1,100 1,204 104 EXPENDITURES Materials and services 100 100 - 100 ' Capital outlay 100 100 - 100 Total 200 200 - 200 Operating contingency 81,885 151,885 - 151,885 Total expenditures 82,085 152,085 - 152,085 Excess (deficiency) of revenues over expenditures (80,985) (150,985) 1,204 152,189 ' Other financing sources (uses) Transfers in from other funds - 70,000 70,000 - Transfers to other funds (100) (100) - 100 Total other financing sources (uses) (100) 69,900 70,000 100 Excess (deficiency) of revenue and other ' financing sources over (under) expenditures and other financing uses (81,085) (81,085) 71,204 152,289 ' Fund balance - Beginning of year 81,085 81,085 31,067 (50,018) Fund balance - End of year $ - $ - $ 102,271 $ 102,271 -153- Exhibit A- Page /VZ of~ DESCHUTES COUNTY, OREGON GIS DEDICATED FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfer out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Variance Original with Final Budget Final Budget Actual Budget $ 15,000 $ 15,000 $ 20,445 $ 5,445 329,500 329,500 484,221 154,721 75,377 75,377 101,107 25,730 419,877 419,877 605,773 185,896 252,662 276,600 268,708 7,892 183,238 183,238 108,939 74,299 25,300 25,300 14,654 10,646 461,200 485,138 392,301 92,837 616,096 592,158 - 592,158 1,077,296 1,077,296, 392,301 684,995 (657,419) (657,419) 213,472 870,891 (156,681) (156,681) (156,681) - (156,681) (156,681) (156,681) - (814,100) (814,100) 56,791 870,891 874,100 874,100 936,823 62,723 $ 60,000 $ 60,000 $ 993,614 $ 933,614 -154- Exhibit A' Page _LQa of a toq DESCHUTES COUNTY, OREGON NATURAL RESOURCE PROTECTION SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Variance Original with Final Budget Final Budget Actual Budget REVENUES ' Local Interest and rents $ 1,000 $ 1,000 $ 1,575 $ 575 Charges for services 30,000 30,000 49,958 19,958 ' Intergovernmental Local 125,000 125,000 120,190 (4,810) State 8,000 8,000 11,155 3,155 ' Federal 113,000 113,000 37,831 (75,169) Total revenues 277,000 277,000 220,709 (56,291) EXPENDITURES Personnel services 153,013 153,013 150,188 2,825 Materials and services 216,323 216,323 82,140 134,183 1 Total 369,336 369,336 232,328 137,008 Operating contingency 4,781 4,781 - 4,781 Total expenditures 374,117, 374,117 232,328 141,789 Excess (deficiency) of revenues over expenditures (97,117) (97,117) (11,619) 85,498 Other financing sources (uses) Transfers in from other funds 20,000 20,000 20,000 - Total other financing sources (uses) 20,000 20,000 20,000 - Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (77,117) (77,117) 8,381 85,498 ' Fund balance - Beginning of year 77,117 77,117 76,957 160 ' Fund balance - End of year $ - $ - $ 85,338 $ 85,338 -155- Exhibit ~q- Page -tw of kt? DESCHUTES COUNTY, OREGON FEDERAL FOREST TITLE III SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Budget Final Budget REVENUES Local Interest and rents Intergovernmental Federal Total revenues EXPENDITURES Materials and services Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Variance with Final Actual Budget $ 3,500 $ 3,500 $ 6,476 $ 2,976 348,000 348,000 349,114 1,114 351,500 351,500 355,590 4,090 551,500 551,500 352,593 198,907 551,500 551,500 352,593 198,907 (200,000) (200,000) 2,997 202,997 200,000 200,000 188,301 (11,699) $ - $ - $ 191,298 $ 191,298 -156- Exhibit Page / 73 of DESCHUTES COUNTY, OREGON ROAD BUILDING & EQUIPMENT ' SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AN D BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Variance Original with Final Budget Final Budget Actual Budget REVENUES Local Interest and rents $ 10,000 $ 10,000 $ 22,339 $ 12,339 Total revenues 10,000 10,000 22,339 12,339 EXPENDITURES Materials and services 20,321 20,321 20,321 - Capital outlay 894,670 1,029,670 976,248 53,422 Total 914,991 1,049,991 996,569 53,422 Operating contingency 737,186 602,186 - 602,186 Total expenditures 1,652,177 1,652,177 996,569 655,608 Excess (deficiency) of revenues over expenditures (1,642,177) (1,642,177) (974,230) 667,947 Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year 850,000 850,000 850,000 - 850,000 850,000 850,000 - (792,177) (792,177) (124,230) 667,947 792,177 792,177 824,744 32,567 $ - $ - $ 700,514 $ 700,514 -157- Exhibit A- Page!~ of P-ga DESCHUTES COUNTY, OREGON ROAD IMPROVEMENT RESERVE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers out to other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit Page of % Variance Original with Final Budget Final Budget Actual Budget $ 17,450 $ 17,450 $ 17,301 $ (149) 17,450 17,450 17,301 (149) 599,450 599,450 - 599,450 599,450 599,450 - 599,450 (582,000) (582,000) 17,301 599,301 (290,000) (290,000) (290,000) - (290,000) (290,000) (290,000) - (872,000) (872,000) (272,699) 599,301 872,000 872,000 870,952 (1,048) $ - $ - $ 598,253 $ 598,253 -158- DESCHUTES COUNTY, OREGON VEHICLE MAINTENANCE AND REPLACEMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers out Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Variance Original with Final Budget Final Budget Actual Budget $ 15,000 $ 15,000 $ 19,970 $ 4,970 276,900 276,900 275,975 (925) 291,900 291,900 295,945 4 045 , 71,000 86,000 85,567 433 350,000 350,000 249,839 100,161 421,000 436,000 335,406 100,594 694,170 666,170 - 666,170 1,115,170 1,102,170 335,406 766,764 (823,270) (810,270) (39,461) 770,809 (13,000) (12,605) 395 (13,000) (12,605) 395 (823,270) (823,270) (52,066) 771,204 823,270 823,270 798,310 (24,960) $ - $ $ 746,244 $746,244 -159- Exhibit Page /7,f-of a$fj DESCHUTES COUNTY, OREGON DOG CONTROL SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Licenses and permits Fines, forfeitures and penalties Interest and rents Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit Page L Original Variance with Budget Final Budget Actual Final Budget $ 144,196 $ 144,196 $ 153,181 $ 8,985 2,300 2,300 2,242 (58) 850 850 1,502 652 147,346 147,346 156,925 9,579 42,290 48,290 44,899 3,391 213,442 213,442 208,157 5,285 . 100 100 - 100 255,832 261,832 253,056 8,776 24,823 18,823 - 18,823 280,655 280,655 253,056 27,599 (133,309) (133,309) (96,131) 37,178 103,309 103,309 103,309 - 103,309 103,309 103,309 - (30,000) (30,000) 7,178 37,178 55,000 55,000 42,151 (12,849) $ 25,000 $ 25,000 $ 49,329 $ 24,329 -160- of DESCHUTES COUNTY, OREGON ADULT PAROLE & PROBATION SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Fines, forfeitures and penalties Interest and rents Charges for services Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Original Variance with Budget Final Budget Actual Final Budget $ 363,000 $ 363,000 $ 326,411 $ (36,589) 20,400 20,400 28,567 8,167 21,759 21,759 116,136 94,377 11797,040 1,797,040 1,919,448 122,408 2,202,199 2,202,199 2,390,562 188,363 2,007,742 2,099,923 1,969,979 129,944 521,681 541,081 538,469 2,612 100 100 - 100 2,529,523 2,641,104 2,508,448 132,656 85,712 45,386 - 45 386 , 2,615,235 2,686,490 2,508,448 178,042 (413,036) (484,291) (117,886) 366,405 Other financing sources (uses) Appropriation transfer - 71,255 - (71,255) Transfers in from other funds - - 22,300 22,300 Total other financing sources (uses) - 71,255 22,300 (48,955) ' Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses ' Fund balance - Beginning of year Fund balance - End of year (413,036) (413,036) (95,586), 317,450 413,036 413,036 423,902 10,866 328,316 $328,316 -161- Exhibit 14- Page eff6_ of DESCHUTES COUNTY, OREGON DESCHUTES COUNTY 911 SERVICE DISTRICT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Interest and rents Charges for services Intergovernmental Local State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers out to other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 2,860,000 $ 2,860,000 $ 2,959,547 $ 99,547 10,700 10,700 39,378 28,678 30,500 30,500 22,511 (7,989) 45,000 45,000 59,222 14,222 , 523,000 523,000 745,715 222,715 3,469,200 3,469,200 3,826,373 357,173 . ~ 2,364,242 2,370,156 2,209,698 160,458 503,840 605,840 581,319 24,521 289,500 496,753 394,254 102,499 3,157,582 3,472,749 3,185,271 287,478 781,618 466,451 - 466,451 3,939,200 3,939,200 3,185,271 753,929 (470,000) (470,000) 641,102 1,111,102 (130,000) (130,000) (130,000) - (130,000) (130,000) (130,000) - (600,000) (600,000) 511,102 1,111,102 600,000 600,000 1,252,123 652,123 $ - $ - $ 1,763,225 $ 1,763,225 -162- Exhibit Page / R of a-. DESCHUTES COUNTY, OREGON 911 CSD - EQUIPMENT RESERVE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AN D BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local ' Interest and rents $ - $ - $ 3,351 $ 3,351 Total revenues - - 3,351 3,351 EXPENDITURES - - Total expenditures Excess (deficiency) of revenues - - over expenditures 3,351 3,351 Other financing sources (uses) Transfers in from other funds 130,000 130,000 130,000 - Total other financing sources (uses) 130,000 130,000 130,000 - Excess (deficiency) of revenue: and other financing sources over (under) expenditures and other financing uses 130,000 130,000 133,351 3,351 Fund balance - Beginning of year 148,000 148,000 149,105 1,105 Fund balance - End of year $ 278,000 $ 278,000 $ 282,456 $ 4,456 -163- Exhibit i~- Page Z of Q DESCHUTES COUNTY, OREGON EXTENSION / 4-H SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Interest and rents Charges for services Intergovernmental State Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 248,177 $ 248,177 $ 264,177 $ 16,000 1,300 1,300 3,295 1,995 2,600 2,600 2,151 (449) 10,000 10,000 30,000 20,000 262,077 262,077 299,623 37,546 176,191 176,191 175,911 280 115,010 115,010 94,994 20,016 1,600 2,100 1,950 150 292,801 293,301 272,855 20,446 22,659 22,159 - 22,159 315,460 315,460 272,855 42,605 (53,383) (53,383) _ 26,768 80,151 101,883 101,883 _ 106,499 4,616 $ 48,500 $ 48,500 $ 133,267 $ 84,767 -164- Exhibit 4 _ Page Z E3 of DESCHUTES COUNTY, OREGON BLACK; BUTTE RANCH COUNTY SERVICE DISTRICT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Interest and rents Charges for services Other Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 447,000 $ 447,000 $ 449,990 $ 2,990 4,000 4,000 5,696 1,696 13,200 13,200 13,200 - 2,000 2,000 11,678 9,678 466,200 466,200 480,564 14,364 424,755 424,755 395,921 28,834 100,477 100,477 91,265 9,212 32,000 32,000 31,978 22 557,232 557,232 519,164 38,068 25,000 25,000 - 25 000 , 582,232 582,232 519,164 63 068 , (116,032) (116,032) (38,600) 77,432 256,032 256,032 254,589 (1,443) 140,000 $ 140,000 $ 215,989 $ 75,989 -165- Exhibit 4 Page -[S:l of an DESCHUTES COUNTY, OREGON SUNRIVER SERVICE DISTRICT - GENERAL FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND, BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with Budget Final Budget _ Actual Final Budget REVENUES Local Taxes-Property $ 2,565,256 $ 2,565,256 $ 2,710,766 $ 145,510 Interest and rents 10,000 10,000 24,538 14,538 Charges for services 156,000 156,000 162,778 6,778 Other 1,470 4,225 9,380 5,155 Total revenues 2,732,726 2,735,481, 2,907,462 171,981 EXPENDITURES Police Personnel services 920,148 960,148 928,784 31,364 Materials and services 141,280 141,280 106,968 34,312 Total 1,061,428 1,101,428 1,035,752 65,676 Fire and Emergency Services Personnel services 1,088,895 1,123,895 1,085,872 , 38,023 Materials and services 241,761 254,516 232,793 21,723 - Total 1,330,656 1,378,411 1,318,665 59,746 Pathway Rangers ' Personnel services 51,653 60,653 51,422 9,231 Materials and services 6,500 7,700 5,230 2,470 Total 58,153 68,353 56,652 11,701 General Materials and services 239,254 239,254 191,946 47,308 Capital outlay 100 100 - 100 Debt service interest 1,000 1,000 643 ' 357 Total 240,354 240,354 192,589 47,765 Operating contingency 407,910 312,710 312,710 Total expenditures 3,098,501 3,101,256 2,603,658 497,598 Excess (deficiency) of revenues , over expenditures (365,775) (365,775) 303,804 669,579 Other financing uses Transfer out (159,200) (159,200) (159,200) - Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (524,975) (524,975) 144,604 669,579 Fund balance - Beginning of year 524,975 524,975 620,679 95,704 Fund balance - End of year $ - $ - $ 765,283 $ 765,283 Exhibit Yq -166- ' Page /E:~ Of DESCHUTES COUNTY, OREGON SUNRIVER SERVICE DISTRICT - RESERVE FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Grants Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources Transfer in Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 1,500 $ 1,500 $ 7,894 $ 6,394 - 49,679 51,579 1,900 1,500 51,179 59,473 8,294 250 250 120 130 45,480 95,159 92,975 2,184 45,730 95,409 93,095 2,314 470,080 470,080 - 470,080 515,810 565,489 93,095 472,394 (514,310) (514,310) (33,622) 480,688 159,200 159,200 159,200 - (355,110) (355,110) 125,578 480,688 355,110 355,110 358,259 3,149 $ - $ - $ 483,837 $ 483,837 -167- Exhibit f~ Paged of a DESCHUTES COUNTY, OREGON 2000 SERIES LTD TAX IMPROVEMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Debt service Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers out to other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Budget Final Budget Variance with Actual Final Budget $ 22,500 $ 22,500 $ 16,453 $ (6,047) 326,396 326,396 _ 58,763 (267,633) 348,896 348,896 75,216 (273,680) 349,996 349,996 80,421 269,575 349,996 349,996 80,421 269,575 (1,100) (1,100) (5,205) (4,105) (100) (100) (100) (100) 100 100 (1,200) (1,200) (5,205) (4,005) 1,200 1,200 _ 9,003 7,803 $ - $ - $ 3,798 $ 3,798 -168- Exhibit Page 1'm Of DESCHUTES COUNTY, OREGON 2003 SERIES LTD TAX IMPROVEMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Debt service Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers out to other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 62,000 $ 62,000 $ 40,140 $ (21,860) 1,069,769 1,069,769 261,567 (808,202) 1,131,769 1,131,769 301,707 (830,062) 1,078,124 1,078,124 333,340 744,784 1,078,124 1,078,124 333,340 744,784 53,545 53,545 - 53,545 1,131,669 1,131,669 333,340 798,329 100 100 (31,633) (31,733) (100) (100) - 100 (100) (100) - 100 (31,633) (31,633) - 55,215 55,215 $ $ - $ 23,582 $ 23,582 -169- Exhibit A Page ZRof ee- DESCHUTES COUNTY, OREGON 2005 SERIES LTD TAX IMPROVEMENT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ - $ - $ 4,223 $ 4,223 - _ 76,912 76,912 - 81,135 81,135 81,135 81,135 $ - $ - $ 81,135 $ 81,135 -170- Exhibit A Page -Ln of DESCHUTES COUNTY, OREGON CDD BUILDING 1996 FULL FAITH & CREDIT, SERIES 2004 SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenuers over expenditures Original Variance with Budget Final Budget Actual Final Budget $ 1,000 $ 1,000 $ 1,315 $ 315 - - 1,880 1,880 1,000 1,000 3,195 2,195 3,000 3,000 450 2,550 209,595 424,595 393,488 31,107 212,595 427,595 393,938 33,657 (211,595) (426,595) (390,743) 35,852 Other financing sources (uses) Appropriation transfer - 215,000 - (215,000) -Transfers in from other funds 200,000 200,000 200,000 - Total other financing sources (uses) 200,000 415,000 200,000 (215,000) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (11,595) (11,595) (190,743) (179,148) Fund balance - Beginning of year Fund balance - End of year 206,000 206,000 206,499 499 $ 194,405 $ 194,405 $ 15,756 $ (178,649) -171- Exhibit Page 1O4 of DESCHUTES COUNTY, OREGON FULL FAITH AND CREDIT, 2003 SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Debt service Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit Page 191t of Original Variance with Budget Final Budget Actual Final Budget $ 606,000 $ 606,000 $ 598,897 $ (7,103) 606,000 606,000 598,897 (7,103) 1,500 1,500 1,000 500 1,973,660 1,973,660 1,586,281 387,379 1,975,160 1,975,160 1,587,281 387,879 2,254 2,254 - 2,254 1,977,414 1,977,414 '1,587,281 390,133 (1,371,414) (1,371,414) (988,384) 383,030 1,371,414 1,371,414 _ 984,035 (387,379) 1,371,414 1,371,414 984,035 (387,379) (4,349) (4,349) 80,311 80,311 $ - $ - $ 75,962 $ 75,962 -172- DESCHUTES COUNTY, OREGON HHS / BJCC 1998 COPs SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenues ' over expenditures Other financing sources (uses) ' Transfers in from other funds Total other financing sources (uses) ' Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses ' Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 2,000 $ 2,000 $ 9,076 $ 7,076 2,000 2,000 9,076 7,076 3,050 3,050 3,050 - 647,453 647,453 647,453 - 650,503 650,503 650,503 - (648,503) (648,503) (641,427) 7,076 656,456 656,456 656,456 - 656,456 656,456 656,456 - 7,953 7,953 15,029 7,076 637,000 637,000 637,540 540 $ 644,953 $ 644,953 $ 652,569 $ 7,616 -173- Exhibit A- Page (q~2 ofo ~ DESCHUTES COUNTY, OREGON GOVERNMENT CENTER COPS SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with Budget Final Budget Actual Final Budget $ 400 $ 400 $ 1,701 $ 1,301 400 400 1,701 1,301 1,280 1,280 1,280 - 136,190 136,190 _ 136,190 - 137,470 137,470 137,470 - (137,070) (137,070) (135,769) 1,301 136,305 136,305 136,305 - 136,305 136,305 136,305 - (765) (765) 536 1,301 136,000 136,000 136,223 223 $ 135,235 $ 135,235 $ 136,759 $ 1,524 -174- REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit A Page of DESCHUTES COUNTY, OREGON PUBLIC SAFETY 1993/1996/1998/2002 GEN'L OBLIGATIONS BOND DEBT SERVICE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Interest and rents Total revenues EXPENDITURES Debt service Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 1,899,130 $ 1,899,130 $ 1,961,868 $ 62,738 6,400 6,400 18,878 12,478 1,905,530 1,905,530 1,980,746 75,216 2,015,530 2,015,530 2,015,530 - 2,015,530 2,015,530 2,015,530 - (110,000) (110,000) (34,784) 75,216 310,000 310,000 309,468 (532) $ 200,000 200,000 $ 274,684 $ 74,684 -175- Exhibit Page 40f DESCHUTES COUNTY, OREGON REDMOND BUILDING 1994 COPs SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 600 $ 600 $ 1,039 $ 439 600 600 1,039 439 650 650 625 25 41,200 41,200 _ 41,200 - 41,850 41,850 41,825 25 (41,250) (41,250) _ 40,786 464 40,600 40,600 _ 40,600 - 40,600 40,600 40,600 - (650) (650) (186) 464 65,000 65,000 65,070 70 $ 64,350 $ 64,350 $ 64,884 $ 534 -176- Exhibit Page 1~ of DESCHUTES COUNTY, OREGON PERS, SERIES 2002 and 2004 DEBT SERVICE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Debt service Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 2,700 $ 2,700 $ 3,706 $ 1,006 774,990 774,990 718,052 (56,938) 777,690 777,690 721,758 (55,932) 677,007 752,021 752,020 1 677,007 752,021 752,020 1 171,091 96,077 - 96,077 848,098 848,098 752,020 96,078 (70,408) (70,408) (30,262) 40,146 70,408 70,408 70,408 - 70,408 70,408 70,408 - 40,146 40,146 347 347 $ - $ - $ 40,493 $ 40,493 -177- Exhibit 14' Page -L2-~! of DESCHUTES COUNTY, OREGON WELCOME CENTER 198811998 COPs SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Materials and services Debt service Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in from other funds Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Exhibit A Page In of Original Variance with Budget Final Budget Actual Final Budget $ 400 $ 400 $ 2,149 $ 1,749 400 400 2,149 1,749 1,280 1,280 1,280 - 152,712 152,712 _ 152,712 - 153,992 153,992 153,992 - (153,592) (153,592) _ 151,843 1,749 160,000 160,000 160,000 - 160,000 160,000 160,000 - 6,408 6,408 8,157 1,749 152,436 152,436 _ 152,476 40 $ 158,844 $ 158,844 $ 160,633 $ .1,789 -178- DESCHUTES COUNTY, OREGON BEND LIBRARY CSD DEBT SERVICE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Interest and rents Total revenues EXPENDITURES Debt service Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 589,410 $ 589,410 $ 605,724 $ 16,314 2,650 2,650 8,080 5,430 592,060 592,060 613,804 21,744 692,060 692,060 692,060 - 692,060 692,060 692,060 - (100,000) (100,000) (78,256) 21,744 160,000 160,000 166,176 .6,176 $ 60,000 $ 60,000 $ 87,920 $ 27,920 -179- Exhibit A Page L~ of & DESCHUTES COUNTY, OREGON REDMOND LIBRARY CSD DEBT SERVICE SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Taxes-Property Interest and rents Total revenues EXPENDITURES Debt service Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Exhibit 4 Page of~ Original Variance with Budget Final Budget _Actual Final Budget $ 174,460 $ 174,460 $ 178,912 $ 4,452 540 540 _ 2,392 1,852 175,000 175,000 181,304 6,304 _ 185,000 185,000 _ 185,000 - 185,000 185,000 185,000 - (10,000) (10,000) (3,696) 6,304 12,000 12,000 13,808 1,808 $ 2,000 $ 2,000 $ 10,112 $ 8,112 -180- ' DESCHUTES COUNTY, OREGON SUNRIVER LIBRARY CSD DEBT SERVICE ' SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS ' FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local ' Taxes-Property $ 90,575 $ 90,575 $ 92,608 $ 2,033 Interest and rents 350 350 1,069 719 Total revenues 90,925 90,925 93,677 2,752 ' EXPENDITURES Debt service 94,925 94,925 94,925 - ' Total expenditures 94,925 94,925 94,925 - Excess (deficiency) of revenuers ' over expenditures (4,000) (4,000) (1,248) 2,752 Fund balance - Beginning of year 11,000 11,000 11,635 635 Fund balance - End of year $ 7,000 $ 7,000 $ 10,387 $ 3,387 -181- Exhibit /4 Page ~JU of an DESCHUTES COUNTY, OREGON PROJECT DEVELOPMENT FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Investment earnings and rent Other Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Transfers out Proceeds from bonds Proceeds of sale of assets Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Actual Variance with Budget Final Budget Amounts Final Budget $ 70,000 $ 70,000 $ 396,443 $ 326,443 688,782 688,782 '1,861,845 1,173,063 758,782 758,782 2,258,288 1,499,506 - 100 - 100 149,378 169,164 103,683 65,481 3,000,100 4,136,312 '1,367,516 2,768,796 3,149,478 4,305,576 1,471,199 2,834,377 2,349,348 2,349,348 - 2,349,348 5,498,826 6,654,924 1,471,199 5,183,725 (4,740,044) (5,896,142) 787,089 6,683,231 300,000 300,000 300,000 - (1,123,799) (1,123,799) (11,039,956) 83,843 - 1,156,098 11,158,090 1,992 83,843 83,843 _ - (83,843) (739,956) 416,142 418,134 1,992 (5,480,000) (5,480,000) 1,205,223 6,685,223 5,480,000 5,480,000 5,756,650 276,650 $ - $ - $ 6,961,873 $ 6,961,873 Exhibit Page ~L Of ~-n -182- DESCHUTES COUNTY, OREGON NEWBERRY NEIGHBORHOOD SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Other Intergovernmental Federal Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures ' Other financing sources (uses) Transfers in Transfers out Interfund borrowing Proceeds of sale of assets Total other financing sources (uses) ' Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 2,881 $ 2,881 $ 6,368 $ 3,487 177,300 177,300 14,842 (162,458) - 268,694 245,468 (23,226) 180,181 448,875 266,678 (182 197) , 7,451 1,403,416 1,267,821 135,595 177,300 177,300 118,800 58,500 184,751 1,580,716 1,386,621 194,095 69,541 69,541 - 69 541 , 254,292 1,650,257 1,386,621 263,636 (74,111) (1,201,382) (1,119,943) 81,439 83,843 83,843 - (83,843) (490,805) (490,805) (63,505) 427,300 400,000 400,000 - 289,000 289,000 - (289,000) (117,962) 282,038 336,495 54,457 (192,073) (919,344) (783,448) 135,896 192,073 919,344 918,204 (1,140) $ - $ - 134,756 $ 134,756 -183- Exhibit A- Page of oq~rq DESCHUTES COUNTY, OREGON LOCAL IMPROVEMENT DISTRICT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Charges for services Total revenues EXPENDITURES Materials and services Capital outlay Total Operating contingency Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Transfers in Bonds issued Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 5,000 $ 5,000 $ 10,996 $ 5,996 - - _ 232,190 232,190 5,000 5,000 243,186 238,186 141,000 141,000 98,187 42,813 1,100,000 1,100,000 _ 513,606 586,394 1,241,000 1,241,000 611,793 629,207 344,200 344,200 - 344,200 1,585,200 1,585,200 611,793 973,407 (1,580,200) (1,580,200) (368,607) 1,211,593 200 200 - (200) 1,100,000 1,100,000 _ 370,000 (730,000) 1,100,200 1,100,200 370,000 (730,200) (480,000) (480,000) 1,393 481,393 480,000 480,000 466,001 (13,999) $ - $ - $ 467,394 $ 467,394 -184- Exhibit Page of DESCHUTES COUNTY, OREGON GENERAL COUNTY PROJECTS SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 Original Variance with Budget Final Budget Actual Final Budget REVENUES Local Taxes-Property $ 432,528 $ 432,528 $ 466,940 $ 34,412 Interest and rents 490,258 490,258 560,475 70,217 Total revenues 922,786 922,786 1,027,415 104,629 EXPENDITURES Personnel - 100 - 100 ' Materials and services 91,988 404,021 184,083 219,938 Capital outlay 100 765,121 156,586 608,535 Total 92,088 1,169,242 340,669 828,573 Operating contingency 640,959 133,047 - 133,047 Total expenditures 733,047 1,302,289 340,669 961,620 Excess (deficiency) of revenues over expenditures 189,739 (379,503) 686,746 1,066,249 Other financing sources (uses) Bonds issued - 819,242 820,654 1,412 ' Transfers out (848,414) (1,098,414) (1,098,414) Total other financing sources (uses) (848,414) (279,172) (277,760) .1,412 ' Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses (658,675) (658,675) 408,986 1,067,661 Fund balance - Beginning of year 658,675 658,675 553,102 (105,573) Fund balance - End of year $ - $ - $ 962,088 $ 962,088 -185- Exhibit A- Page Q ,,t4 Oq DESCHUTES COUNTY, OREGON LA PINE BUILDING PURCHASE / REMODEL SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Fund balance - Beginning of year Fund balance - End of year Exhibit Page Original Variance with Budget Final Budget _Actual Final Budget $ 5,000 $ 5,000 $ 6,452 $ 1,452 5,000 5,000 6,452 1,452 _ 6,362 6,362 5,985 377 30,838 30,838 844 29,994 274,800 274,800 16,806 257,994 312,000 312,000 23,635 288,365 _ (307,000) (307,000) (17,183) 289,817 307,000 307,000 303,686 (3,314) $ - $ - $ 286,503 $ 286,503 -186- of DESCHUTES COUNTY, OREGON REMODEL PROJECTS FUND SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Personnel services Materials and services Capital outlay Total expenditures Excess (deficiency) of revenuers over expenditures Other financing sources (uses) Transfers in Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ 10,000 $ 10,000 $ 40,962 $ 30,962 10,000 10,000 40,962 30,962 8,907 8,907 8,266 641 119,091 119,091 89,459 29,632 3,232,002 3,482,002 3,277,519 204,483 3,360,000 3,610,000 3,375,244 234,756 (3,350,000) (3,600,000) (3,334,282) 265,718 350,000 600,000 600,000 - 350,000 600,000 600,000 - (3,000,000) (3,000,000) (2,734,282) 265,718 3,000,000 3,000,000 2,834,542 (165,458) $ - $ - $ 100,260 $ 100,260 -187- Exhibit Page c5LO 0 of 2~ DESCHUTES COUNTY, OREGON COURTHOUSE REMODEL PROJECT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES Local Interest and rents Total revenues EXPENDITURES Personnel Materials and services Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Bonds issued Total other financing sources (uses) Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing uses Fund balance - Beginning of year Fund balance - End of year Original Variance with Budget Final Budget Actual Final Budget $ - $ - $ 12,909 $ 12,909 12,909 12,909 100 - 100 80,039 43,989 36,050 1,441,310 _ 981,233 460,077 1,521,449 1,025,222 496,227 (1,521,449) (1,012,313 509,136 1,521,449 1,527,639 6,190 1,521,449 1,527,639 6,190 515,326 515,326 $ - $ - $ 515,326 $ 515,326 -188- Exhibit Page .2~Az of ' DESCHUTES COUNTY, OREGON SOLID WASTE OPERATIONS ' SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 ' Actual Final Budgeted Variance with GAAP ' Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 6,418,000 $ 625,816 $ 7,043,816 $ - $ 7,043,816 Miscellaneous 15,000 43,408 58,408, 58,408 Total operating revenues 6,433,000 669,224 7,102,224 7,102,224 OPERATING EXPENSES Personnel 1,331,543 (2,053) 1,333,596 12,299 1,345,895 Materials and services 2,972,253 403,952 2,568,301 6,883 2,575,184 Landfill closure/postclosure care costs - - - 540,950 540,950 Depreciation - - - 556,692 556,692 Capital outlay 124,250 4,230 120,020 (120,020) - Debt service 381,028 - 381,028 (381,028) - Total operating expenses 4,809,074 406,129 4,402,945 615,776 5,018,721 , Operating income (loss) 1,623,926 1,075,353 2,699,279 (615,776) 2,083,503 NONOPERATING REVENUES (EXPENSES) Grant 53,100 (53,100) - _ - Investment earnings 30,000 24,591 54,591 - 54,591 Amortization of bond issue costs - - - (4,714) (4,714) Interest expense - - - (257,138) (257,138) Interfund transfer of assets - - - (671) (671) Gain (loss) on equipment disposition - 525 525 90,332 90,857 Total nonoperating revenues (expenses), net 83,100 (27,984) 55,116 (172,191) (117,075) Income (loss) before transfers 1,707,026 1,047,369 2,754,395 (787,967) 1,966,428 Transfers in (out) (2,850,000) - (2,850,000) - (2,850,000) Change in net assets (1,142,974) 1,047,369 (95,605) (787,967) (883,572) Total net assets - Beginning of year 1,142,974 2,393,855 3,536,829 (13,131,177) (9,594 348) , Total net assets - End of year $ - $ 3,441,224 $ 3,441,224 $ (13,919,144) $ (10,477,920) -189- Exhibit A- Page_-adSr of X89 DESCHUTES COUNTY, OREGON LANDFILL CLOSURE SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual -190- Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ - $ - $ - $ - $ - Miscellaneous - - - - - Total operating revenues - - - - - OPERATING EXPENSES Personnel - - - - - Materials and services - - - - - Landfill closure/postclosure care costs Depreciation - - - - - Capital outlay - - - - - Debt service Contingency 2,400,000 2,400,000 Total operating expenses 2,400,000 2,400,000 Operating income (loss) (2,400,000) 2,400,000 - NONOPERATING REVENUES (EXPENSES) Grant - Investment earnings 55,000 42,298 97,298 - 97,298 Amortization of bond issue costs - - - - - Interest expense - - - - - Interfund transfer of assets Gain (loss) on equipment disposition - - - - Total nonoperating revenues (expenses), net 55,000 42,298 97,298 97,298 Income (loss) before transfers (2,345,000) 2,442,298 97,298 97,298 Transfers in (out) 400,000 - 400,000 400,000 Change in net assets (1,945,000) 2,442,298 497,298 - 497,298 Total net assets - Beginning of year 4,390,989 (3,919) 4,387,070 282,171 4,669,241 Total net assets - End of year $ 2,445,989 $ 2,438,379 $ 4,884,368 $ 282,171 $ 5,166,539 Exhibit page ,2 ~ji DESCHUTES COUNTY, OREGON LANDFILL POSTCLOSURE SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ - $ - $ _ $ _ $ _ Miscellaneous - _ Total operating revenues = = OPERATING EXPENSES ' Personnel Materials and services - Landfill closure/postclosure care costs Depreciation - ' Capital outlay = = = Debt service - Contingency 232,262 232,262 - ' Total operating expenses 232,262 232,262 = _ Operating income (loss) (232,262) 232,262 ' NONOPERATING REVENUES (EXPENSES) Grant - _ _ Investment earnings 16,000 13,984 29,984 29,984 Amortization of bond issue costs = Interest expense - Interfund transfer of assets - Gain (loss) on equipment disposition - ' Total nonoperating revenues (expenses), net 16,000 13,984 29,984 29,984 ' Income (loss) before transfers (216,262) 246,246 29,984 - 29,984 Transfers in (out) 200,000 - 200,000 - 200,000 ' Change in net assets (16,262) 246,246 229,984 - 229,984 Total net assets - Beginning of year 1,332,416 (972) 1,331,444 - 1,331,444 Total net assets - End of year $ 1,316,154 $ 245,274 $ 1,561,428 $ - $ 1,561,428 Exhibit Pagec9-10 ofd DESCHUTES COUNTY, OREGON SOLID WASTE CAPITAL PROJECTS SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure care costs Depreciation Capital outlay Debt service Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grant Investment earnings Amortization of bond issue costs Interest expense Interfund transfer of assets Gain (loss) on equipment disposition Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in (out) Change in net assets Total net assets - Beginning of year Total net assets - End of year Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis 104,235 100,000 4,235 (4,235) - 240,000 65,655 174,345 (174,345) - 1,221,275 1,221,275 - _ - - 1,565,510 1,386,930 178,580 (178,580) - (1,565,510) 1,386,930 (178,580) 178,580 - 10,000 18,730 28,730 - 28,730 10,000 18,730 28,730 - 28,730 (1,555,510) 1,405,660 (149,850) 178,580 28,730 1,000,000 - 1,000,000 - 1,000,000 (555,510) 1,405,660 850,150 178,580 1,028,730 555,510 524,699 1,080,209 4,363,155 5,443,364 $ - $ 1,930,359 $ 1,930,359 $ 4,541,735 $ 6,472,094 -192- Exhibit Page ~ of ' DESCHUTES COUNTY, OREGON SOLID WASTE EQUIPMENT RESERVE ' SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure care costs Depreciation Capital outlay Debt service Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grant Investment earnings Amortization of bond issue costs Interest expense Interfund transfer of assets Gain (loss) on equipment disposition Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in (out) Change in net assets Total net assets - Beginning of year Total net assets - End of year Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis 7,435 - 7,435 1,758 9,193 460,442 - 460,442 (460,442) - 108,297 2,483 105,814 (105,814) - 81,703 81,703 - - - 657,877 84,186 573,691 (564,498) 9,193 (657,877) 84,186 (573,691) 564,498 (9,193) 5,000 6,197 11,197 - 11,197 - - - (2,034) (2,034) 5,000 6,197 11,197 (2,034) 9,163 (652,877) 90,383 (562,494) 562,464 (30) 350,000 750,000 1,100,000 - 1,100,000 (302,877) 840,383 537,506 562,464 1,099,970 663,060 (774) 662,286 245,973 908,259 $ 360,183 $ 839,609 $ 1,199,792 $ 808,437, 2® -193- Exhibit ~ Page a, of an DESCHUTES COUNTY, OREGON ENVIRONMENTAL REMEDIATION SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure care costs Depreciation Capital outlay Debt service Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grant Investment earnings Amortization of bond issue costs Interest expense Interfund transfer of assets Gain (loss) on equipment disposition Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in (out) Change in net assets Total net assets - Beginning of year Total net assets - End of year Exhibit P Page ~L of l~ Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis 1,000 1,000 - - 1,500 1,500 - 261,180 261,180 - 263,680 263,680 - (263,680) 263,680 - 24,000 13,137 37,137 24,000 13,137 37,137 (239,680) 276,817 37,137 37,137 37,137 37,137 (239,680) 276,817 37,137 - 37,137 1,717,199 (1,987) 1,715,212 1,715,212 $ 1,477,519 $ 274,830 $ 1,752,349 $ ® $ 1,752,349 -194- ' DESCHUTES COUNTY, OREGON SW NORTH AREA DEVELOPMENT SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Landfill closure/postclosure care costs Depreciation Capital outlay Debt service Contingency Total, operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grant Investment earnings Amortization of bond issue costs Interest expense Interfund transfer of assets Gain (loss) on equipment disposition Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in (out) Change in net assets Total net assets - Beginning of year Total net assets - End of year 765,836 711,504 54,332 (54,332) - 4,937,534 4,937,534 149,599 149,599 - 5,852,969 5,798,637 54,332 (54 332) - , (5,852,969) 5,798,637 (54,332) 54,332 - 50,000 67,696 117,696 - 117,696 Actual (135,873) (135,873) 50,000 67,696 117,696 (135,873) (18,177) (5,802,969) 5,866,333 63,364 (81,541) (18,177) 150,000 - 150,000 - 150,000 (5,652,969) 5,866,333 213,364 (81,541) 131,823 5,652,969 (231,433) 5,421,536 1,310,917 6,732,453 $ - $ 5,634,900 $ 5,634,900 $ 1,229,376 $ 6,864,276 -195- Exhibit fe" Page_ of DESCHUTES COUNTY, OREGON FAIR & EXPO CENTER SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Depreciation Capital outlay Debt service Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grants Investment earnings Amortization of debt issuance costs Interest expense Total nonoperating revenues (expenses), net Income (loss) before transfers Transferred capital Transfers in Transfers out Change in net assets Total net assets - Beginning of year Total net assets - End of year Exhibit P' Page ~S of Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 1,089,900 $ (43,620) $ 1,046,280 $ - $ 1,046,280 1,089,900 (43,620) 1,046,280 - 1,046,280 714,240 35,229 679,011 12,502 691,513 753,494 74,558 678,936 9,057 687,993 - - - 708,092 708,092 47,970 3,195 44,775 (44,775) - 43,133 - 43,133 (43,133) - 107,212 107,212 - - 1,666,049 220,194 1,445,855 641,743 2,087,598 (576,149) 176,574 (399,575) (641,743) (1,041,318) 30,355 5,000 35,355 - 35,355 5,000 212 5,212 - 5,212 - - - (79) (79) - (69,284) (69,284) 35,355 5,212 40,567 (69,363) (28,796) (540,794) 181,786 (359,008) (711,106) (1,070,114) - - - (2,728,500) (2,728,500) 491,000 - 491,000 382,685 873,685 (91,006) - (91,006) (91,006) (140,800) 181,786 40,986 (3,056,921) (3,015,935) 140,800 (2,957) 137,843 26,333,122 26,470,965 $ - $ 178,829 $ 178,829 $ 23,276,201 $ 23,455,030 -196- ' DESCHUTES COUNTY, OREGON ANNUAL COUNTY FAIR SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 ' OPERATING REVENUES Charges for services ' Total operating revenues OPERATING EXPENSES Personnel ' Materials and services Contingency Total operating expenses ' Operating income (loss) NONOPERATING REVENUES (EXPENSES) Grants Investment earnings Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers out Change in net assets Total net assets - Beginning of year Total net assets - End of year Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 917,500 $ (44,670) $ 872,830 $ (13,270) $ 859,560 917,500 (44,670) 872,830 (13,270) 859,560 140,011 886 139,125 (2,454) 136,671 643,033 72,845 570,188 (11,195) 558,993 13,651 13,651 _ 796,695 87,382 709,313 (13,649) 695 664 , 120,805 42,712 163,517 379 163,896 43,000 (2,859) 40,141 - 40,141 - 1,687 1,687 - 1,687 43,000 (1,172) 41,828 - 41 828 , 163,805 41,540 205,345 379 205,724 (191,000) - (191,000) - (191,000) (27,195) 41,540 14,345 379 14,724 27,195 48,785 75,980 (81,809) (5 829) , $ - $ 90,325 $ 90,325 $ (81,430) $ 8,895 -197- Exhibit A' Page~t~of jz2aia DESCHUTES COUNTY, OREGON FAIR & EXPO CONSTRUCTION SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND MET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING EXPENSES Materials and services Capital outlay Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Loan Proceeds Investment earnings Total nonoperating revenues (expenses), net Income (loss) before transfers Transferred capital Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 55,463 $ 2,407 $ 53,056 1; 233,014 $ 286,070 2,717,748 2,431,678 286,070 _ (286,070) - 2,773,211 2,434,085 339,126 (53,056) 286,070 (2,773,211) 2,434,085 (339,126) 53,056 (286,070) 2,773,211 8,345 2,781,556 - 25,266 25,266 2,773,211 33,611 2,806,822 - 2,467,696 2,467,696 2,467,696 2,467,696 $ - $ 2,467,696 $ 2,467,696 (2,781,556) - 25,266 (2,781,556) 25,266 (2,728,500) (260,804) _ 2,728,500 2,728,500 - 2,467,696 $ - $ 2,467,696 -198- Change in net assets Total net assets - Beginning of year Total net assets - End of year Exhibit ~ n a ~ Page DESCHUTES COUNTY, OREGON FAIR & EXPO CENTER RESERVE SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING EXPENSES ' Capital outlay Contingency Total operating expenses ' Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in Change in net assets Total net assets - Beginning of year Total net assets - End of year Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 335,000 $ (335,000) $ - 58,006 (58,006) - 393,006 (393,006) - (393,006) 393,006 - 4,000 3,435 7,435 - 7,435 4,000 3,435 7,435 - 7 435 , (389,006) 396,441 7,435 - 7,435 91,006 - 91,006 - 91 006 , (298,000) 396,441 98,441 - 98,441 298,000 530 298,530 - 298 530 , $ - $ 396,971 $ 396,971 $ - $ 396,971 -199- Exhibit Page d/~ofra DESCHUTES COUNTY, OREGON FAIRGROUNDS DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 -200- Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis ' OPERATING REVENUES Property taxes $ 1,842,894 $ 68,191 $ 1,911,085 4; (6,931) $ 1,904,154 Total operating revenues 1,842,894 68,191 1,911,085 _ (6,931) 1,904,154 , OPERATING EXPENSES Debt service 1,963,294 - 1,963,294 (1,963,294) - Total operating expenses 1,963,294 - 1,963,294 _ (1,963,294) ' - Operating income (loss) (120,400) 68,191 (52,209) _ 1,956,363 1,904,154 NONOPERATING REVENUES (EXPENSES) Investment earnings 5,400 6,121 11,521 - 11,521 Amortization of debt issuance costs - - - (131,206) (131,206) Interest expense - - (935,771) (935,771) Total nonoperating revenues (expenses), net 5,400 6,121 11,521 (1,066,977) (1,055,456) _ Change in net assets (115,000) 74,312 (40,688) 889,386 848,698 Total net assets - Beginning of year 315,000 (688) 314,312 (22,396,311) (22,081,999) _ Total net assets -End of year $ 200,000 $ 73,624 $ 273,624 $ 21,506,925 $(21,233,301) Exhibit Page of ag ' DESCHUTES COUNTY, OREGON BUILDING SERVICES ' SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING REVENUES Charges for services ' Total operating revenues OPERATING EXPENSES Personnel Materials and services Depreciation Capital outlay Total operating expenses Operating income (loss) ' NONOPERATING REVENUES (EXPENSES) Investment earnings Rents Interfund transfer of assets Loss on disposition of capital assets Total nonoperating revenues (expenses), net Income (loss) before transfers Transfer In Change in net assets Total net assets - Beginning of year Total net assets - End of year Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 1,693,557 $ (24,721) $ 1,668,836 $ - $ 1,668,836 1,693,557 (24,721) 1,668,836 - 1,668,836 1,132,314 62,720 1,069,594 746 1,070,340 638,563 75,312 563,251 29,860 593,111 - - - 41,253 41,253 49,800 19,940 29,860 (29,860) - 1,820,677 157,972 1,662,705 41,999 1,704,704 , (127,120) 133,251 6,131 (41,999) (35,868) 3,000 3,454 6,454 - 6,454 - 9,036 9,036 - 9,036 - - - 11,718 11,718 - - - (656) (656) 31000 12,490 15,490 11,062 26,552 , (124,120) 145,741 21,621 (30,937) (9,316) 44,000 - 44,000 - 44,000 (80,120) 145,741 65,621 (30,937) 34,684 110,120 105,369 215,489 184,170, 399,659 $ 30,000 $ 251,110 $ 281,110 $ 153,233 $ 434,343 -201- Exhibit A Page 9Q6 ofa~ DESCHUTES COUNTY, OREGON ADMINISTRATIVE SERVICES SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 442,846 $ (4,950) $ 437,896 - $ 437,896 442,846 (4,950) 437,896 - 437,896 403,862 8,891 394,971 (37,286) 357,685 84,884 448 84,436 - 84,436 100 100 - - - 488,846 9,439 479,407 _ (37,286) 442,121 (46,000) 4,489 (41,511) _ 37,286 (4,225) - 482 482 482 - 482 482 - 482 (46,000) 4,971 (41,029) 37,286 (3,743) 46,000 (1,000) 45,000 - 45,000 _ - 3,971 3,971 37,286 41,257 - 4,358 4,358 (53,526) (49,168) _ $ - $ 8,329 $ 8,329 $ (16,240) $ (7,911) -202- OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Capital outlay Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Total nonoperating revenues (expenses), net Income (loss) Transfers In Change in net assets Total net assets - Beginning of year Total net assets - End of year Exhb it , f Pag 2 DESCHUTES COUNTY, OREGON FINANCE ' SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual ' OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Depreciation Capital outlay Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment, earnings Total nonoperating revenues (expenses), net Income (loss) Transfers in Change in net assets Total net assets - Beginning of year Total net assets - End of year Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 981,604 $ 55,382 $ 1,036,986 $ - $ 1,036,986 400 400 - 400 981,604 55,782 1,037,386 - 1,037,386 670,526 53,739 616,787 3,532 620,319 314,989 50,881 264,108 16,833 280,941 - - - 60,859 60,859 75,800 58,967 16,833 (16,833) - 45,289 45,289 - - - 1,106,604 208,876 897,728 64,391 962,119 (125,000) 264,658 139,658 (64,391) 75,267 3,000 3,276 6,276 - 6,276 3,000 3,276 6,276 - 6,276 (122,000) 267,934 145,934 (64,391) 81,543 (122,000) 267,934 145,934 (64,391) 81,543 172,000 79,921 251,921 (17,637) 234,284 $ 50,000 $ 347,855 $ 397,855 $ (82,028) -203- Exhibit - Page -ja~ of DESCHUTES COUNTY, OREGON LEGAL SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 517,697 $ (7,776) $ 509,921 9> - $ 509,921 517,697 (7,776) 509,921 - 509,921 459,225 889 458,336 1,801 460,137 63,717 12,692 51,025 - 51,025 100 100 - - - 25,655 25,655 - - - 548,697 39,336 509,361 1,801 511,162 (31,000) 31,560 560 (1,801) (1,241) 1,000 467 1,467 _ - 1,467 1,000 467 1,467 - 1,467 (30,000) 32,027 2,027 (1,801) 226 10,000 - 10,000 - 10,000 (20,000) 32,027 12,027 (1,801) 10,226 30,000 10,727 40,727 (34,654) 6,073 $ 10,000 $ 42,754 $ 52,754 $ (36,455) $ 16,299 -204- OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Capital outlay Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Total nonoperating revenues (expenses), net Income (loss) before transfers Appropriation Transfer Change in net assets Total net assets - Beginning of year Total net assets - End of year Exhibit Page DESCHUTES COUNTY, OREGON PERSONNEL SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Personnel Materials and services Capital outlay Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in Change in net assets Total net assets - Beginning of year Total net assets - End of year Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 549,749 $ 2,270 $ 552,019 $ - $ 552,019 549,749 2,270 552,019 - 552,019 344,589 4,805 339,784 (3,803) 335,981 314,060 78,999 235,061 873 235,934 900 27 873 (873) - 50,000 50,000 - - - 709,549 133,831 575,718 (3 803) 571 915 , , (159,800) 136,101 (23,699) 3,803 (19,896) 3,800 2,364 6,164 - 6,164 3,800 2,364 6,164 - 6 164 , (156,000) 138,465 (17,535) 3,803 (13,732) (156,000) 138,465 (17,535) 3,803 (13,732) 156,000 84,842 240,842 (33,830) 207,012 $ - $ 223,307 $ 223,307 $ (30,027) $ 193,280 -205- Exhibit A Page of _an DESCHUTES COUNTY, OREGON INFORMATION TECHNOLOGY SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 1,631,789 $ 30,620 $ 1,662,409 ;6 - $ 1,662,409 Total operating revenues 1,631,789 30,620 1,662,409 - 1,662,409 OPERATING EXPENSES Personnel 1,511,672 67,633 1,444,039 (33,430) 1,410,609 Materials and services 351,871 88,870 263,001 5,380 268,381 Depreciation - - - 62,082 62,082 Capital outlay 5,400 20 5,380 (5,380) - Contingency 160,010 160,010 - - - Total operating expenses 2,028,953 316,533 1,712,420 28,652 1,741,072 Operating income (loss) (397,164) 347,153 (50,011) (28,652) (78,663) NONOPERATING REVENUES (EXPENSES) Investment earnings 5,000 6,199 11,199 - 11,199 Interfund transfer of assets - - - 7,411 7,411 Total nonoperating revenues (expenses), net 5,000 6,199 11,199 7,411 18,610 Income (loss) before transfers (392,164) 353,352 (38,812) (21,241) (60,053) Transfers in 46,164 - 46,164 - 46,164 Change in net assets (346,000) 353,352 7,352 (21,241) (13,889) Total net assets - Beginning of year 467,000 (1,285) 465,715 (74,934) 390,781 _ Total net assets - End of year $ 121,000 $ 352,067 $ 473,067 (96,175) $ 376,892 -206- Exhibit Page s of DESCHUTES COUNTY, OREGON IT RESERVE SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING REVENUES Charges for services Total operating revenues OPERATING EXPENSES Materials and services Depreciation Capital outlay Debt service Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Investment earnings Loans Interest expense Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in Change in net assets Total net assets - Beginning of year Total net assets - End of year Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 210,000 $ 681 $ 210,681 $ - $ 210,681 210,000 681 210,681 - 210,681 38,000 676 37,324 216,212 253,536 - - - 99,894 99,894 474,250 59,045 415,205 (415,205) - 84,848 - 84,848 (84,848) - 116,702 116,702 - - - 713,800 176,423 537,377 (183,947) 353,430 (503,800) 177,104 (326,696) 183,947 (142,749) 3,800 2,048 5,848 - 5,848 200,000 (200,000) - - - - - - (3,385) (3,385) 203,800 (197,952) 5,848 (3,385) 2,463 (300,000) (20,848) (320,848) 180,562 (140,286) (300,000) (20,848) (320,848) 180,562 (140,286) 300,000 57,994 357,994 (109,762) 248,232 $ - $ 37,146 $ 37,146 $ 70,800 $ 107,946 -207- Exhibit_ Page Q( of ae!7 DESCHUTES COUNTY, OREGON INSURANCE SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual OPERATING REVENUES Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES Personnel Materials and services Depreciation Capital outlay Contingency Total operating expenses Operating income (loss) NONOPERATING REVENUES (EXPENSES) Loan repayment Investment earnings Interfund transfer of capital assets Total nonoperating revenues (expenses), net Income (loss) before transfers Transfers in Change in net assets Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis $ 1,591,996 $ 14,717 $ 1,606,713 - $ 1,606,713 5,500 (3,755) 1,745 - 1,745 1,597,496 10,962 1,608,458 - 1,608,458 379,746 19,545 360,201 9,305 369,506 2,350,828 354,389 1,996,439 (772,452) 1,223,987 - - - 5,687 5,687 108,600 88,654 19,946 (19,946) - 603,539 603,539 - - - 3,442,713 1,066,127 2,376,586 (777,405) 1,599,180 (1,845,217) 1,077,089 (768,128) 777,405 9,278 77,648 3,815 81,463 (81,463) - 41,200 (3,540) 37,660 - 37,660 - - - 2,083 2,083 118,848 .275 119,123 (79,380) 39,743 (1,726,369) 1,077,364 . (649,005) 698,025 49,021 420,000 - 420,000 - 420,000 (1,306,369) 1,077,364 (229,005) 698,025 469,021 2,500,000 (365,104) 2,134,896 (1,678,857) 456,039 $ 1,193,631 $ 712,260 $ 1,905,891 $ (980,832) $ 925,060 -208- Total net assets - Beginning of year Total net assets - End of year Exhibit Page _ef ' ' DESCHUTES COUNTY, OREGON HEALTH BENEFITS TRUST SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2005 Actual Final Budgeted Variance with GAAP Amounts Final Budget Budget Basis Adjustments GAAP Basis OPERATING REVENUES Charges for services $ 9,042,367 $ 325,315 $ 9,367,682 $ $ 9,367,682 Total operating revenues 9,042,367 325,315 9,367,682, - 9,367,682 OPERATING EXPENSES Personnel 110,935 425 110,510 2,720 113,230 Materials and services 8,933,541 1,543,142 7,390,399 102,039 7,492,438 Capital outlay 100 100 - - - Contingency 2,689,433 2,689,433 - - - Total operating expenses 11,734,009 4,233,100 7,500,909 104,759 7,605,668 Operating income (loss) (2,691,642) 4,558,415 1,866,773 (104,759) 1,762,014 NONOPERATING REVENUES (EXPENSES) Investment earnings 54,000 25,016 79,016 - 79,016 Total nonoperating revenues (expenses), net 54,000 25,016 79,016 - 79,016 Income (loss) before transfers (2,637,642) 4,583,431 1,945,789 (104,759) 1,841,030 Transfers out (420,000) - (420,000) - (420,000) Change in net assets (3,057,642) 4,583,431 1,525,789 (104,759) 1,421,030 Total net assets - Beginning of year 3,057,642 (3,795) 3,053,847 (712,247) 2,341,600 Total net assets - End of year $ - $ 4,579,636 $ 4,579,636 $ (817,006) $ 3,762,630 -209- Exhibit Page-0----&'of This page intentionally left blank. Exhibit Page of CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS Exhibit q,-_ P 9- 0 f This page intentionally left blank. Exhibit P~ Page a 3 F of s° ' DESCHUTES COUNTY, OREGON CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS i COMPARATIVE SCHEDULE BY SOURCE' JUNE 30, 2005 AND 2004 Governmental funds capital assets: Land Land Improvements Construction in Progress Infrastructure Buildings & Improvements Equipment & Vehicles Total governmental funds capital assets Investments in governmental funds capital assets by source: General fund Special revenue fund Capital projects fund Total governmental funds capital assets 2005 2004 $ 8,276,684 3,863,051 1,497,487 9,607,178 57,776,323 20,332,219 $101,352,942 $ 6,284,101 3,020,945 3,106,944 5,715,006 54,562,404 17,847,317 $ 90,536,717 $ 12,075,621 29,697,035 59,580,286 $101,352,942 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. -213- $ 11,112,788 22,605,382 56,818,547 $ 90,536,717 Exhibit_ f Page a.3,--of DESCHUTES COUNTY, OREGON CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY' JUNE 30, 2005 Land Buildings & Equipment Construction Function and Activity Land Improvements Improvements & Vehicles Infrastructure In Proc rel ss Total General Government $ - $ 48,838 $ - $ 100,941 $ - $ - $ 149,779 General Services 8,276,684 3,445,416 34,390,598 2,619,243 - 1,198,836 49,930,777 Education - - - - County roads 248,560 2,383,977 6,582,328 9,607,178 180,936 19,002,979 Public Protection - 120,237 16,272,684 10,304,325 - 117,715 26,814,961 Health & Welfare 4,729,064 725,382 5,454,446 Total governmental funds capital assets $ 8,276,684 $ 3,863,051 $ 57,776,323 $ 20,332,219 $ 9,607,178 $ 1,497 487 $ 101.352,942 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. Exhibit --A -214- Page~ of ' DESCHUTES COUNTY, OREGON CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS ' SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY 1 FOR THE YEAR ENDED JUNE 30, 2005 Governmental Governmental ' Funds Capital Funds Capital Assets 04/05 04/05 04/05 Assets Function and Activity July 1, 2004 Additions Reclass Deductions June 30, 2005 General Government $ 172,864 $ - $ (23,085) $ - $ 149,779 General Services 46,443,364 7,447,973 (440,524) (3,520,038) 49,930,775 Education - _ _ _ - ' County roads 14,009,809 5,248,384 22,770 (277,983) 19,002,980 Public Protection 24,436,554 3,255,501 (4,478) (872,615) 26,814,962 Health & Welfare 5,474,126 68,134 23,333 (111,147) 5,454,446 Total governmental funds capital assets $ 90,536,717 $ 16,019,992 $ (421,984) $ (4,781,783) $ 101,352,942 This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. -215- Exhibit 11 Page 3 40f This page intentionally left blank. Exhibit A Paged of Wk OTHER FINANCIAL SCHEDULES Exhibit -A page p. - of ~ This page intentionally left blank. Exhibit P- Page X37 of alck DESCHUTES COUNTY, OREGON FIDUCIARY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - DETAIL ACTIVITY FOR THE FISCAL YEAR ENDED JUNE 30, 3005 Balance Balance July 1, 2004 Additions Deductions June 30, 2005 Amounts Held for Others Assets Cash, cash equivalents and investments (including accrued interest) Accounts receivable Liabilities Accounts payable Due to other entities Governmental Others $ 11,091,813 $ 184,839,870 $ 184,775,175 $ 11,156,508 5,934 - 4,233 1,701 $ 11,097,747 $ 184,839,870 $ 184,779,408 $ 11,158,209 $ 261,840 $ 14,953 $ 261,840 $ 14,953 1,983,794 182,664,409 182,326,051 2,322,152 8,852,113 2,160,508 2,191,517 8,821,104 $ 11,097,747 $ 184,839,870 $ 184,779,408 $ 11,158,209 -219- Exhibit q~ -i Page ~aTof 9 DESCHUTES COUNTY, OREGON SCHEDULE OF PROPERTY TAXES TRANSACTIONS - ALL COUNTY TAXES FISCAL YEAR ENDED JUNE 30, 2005 Beginning Turnovers Taxes Balance and Interest from Counpj Receivable Tax Year 2004-05 Levy Adjustments (Discount) Treasurer _ June 30, 2005 Prior $ 20,008 $ (75) $ 3,702 $ 6,212 $ 17,423 1998-99 11,613 - 1,761 4,369 9,005 1999-00 35,465 (165) 8,168 23,100 20,368 2000-01 214,022 (530) 61,696 222,222 52,966 2001-02 630,268 (1,300) 126,095 528,181 226,882 2002-03 1,614,087 (9,359) 171,985 1,044,252 732,461 2003-04 4,601,282 (133,396) 238,660 3,272,908 1,433,638 2004-05 180,145,094 (930,815) (4,164,978) 170,740,363 4,308,938 TOTALS $ 187,271,839 $ (1,075,640) $ (3,552,911) 175,841,607 $ 6,801,681 Other Distributions: Interest earned on unsegregated taxes TOTAL CASH COLLECTIONS Summarized by Fund Type General Fund Special Revenue Funds Debt Service Funds Proprietary Funds Agency Funds 73,221 $ 175i.914.82~ $ 569,612 740,482 116,250 76,761 5,298,577 $ 6,801,682 -220- Exhibit Page, of STATISTICAL SECTION Exhibit A Page,9-¢o Of ~ This page intentionally left blank. Exhibit Page 1 0 STATISTICAL SECTION CONTENTS This part of Deschutes County's statistical comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the County's overall health. Pages ' Financial Trends 225-229 These schedules contain trend information to help the reader understand how the County's financial perform-once and well-being have changed over time. Revenue Capacity ..........................................................................................................230-235 These schedules contain information to help the reader assess the County's most ' significant local revenue source, the property tax. Debt Capacity ...........................................................................................................236-243. These schedules present information to help the reader assess the affordability of the County's current levels of outstanding debt and the County's ability to issue additional debt in the future. Demographic and Economic Information ....................................................................244-245 These schedules offer demographic and economic indicators to help the reader understand the environment within which the County's financial activities take place. Operating Information ...................................................................................................246-248 These schedules contain service and infrastructure data to help the reader understand how the information in the County's financial report relates to the services the County provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The County implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. Exhibit P Pagea42of. Pe l This page intentionally left blank. Exhibit--&-- 0 Page a`44 f _ , DESCHUTES COUNTY, OREGON NET ASSETS BY COMPONENT LAST THREE FISCAL YEARS (accrual basis of accounting) Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets Business-type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activities net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets -225- Fiscal Year 2003 2004 2005 $ 16,778,521 $ 21,977,138 $ 28,248,171 14,649,031 21,835,161 15,300,732 16,202,780 18,362,189 33,928,281 $ 47,630,332 $ 62,174,488 $ 77,477,184 $ 8,403,452 $ 12,500,715 $ 12,364,858 6,166,969 5,421,536 8,102,596 (2,012,466) (2,034,962) (2,025,168) $ 12,557,955 $ 15,887,289 $ 18,442,286 $ 25,181,973 $ 34,477,853 $ 40,613,029 14,649,031 27,256,697 23,403,328 20,357,283 16,327,227 31,903,113 $ 60,188,287 $ 78,061,777 $ 95,919,470 Exhibit Page QA9, of a DESCHUTES COUNTY, OREGON CHANGES IN NET ASSETS, LAST THREE FISCAL YEARS (accrual basis of accounting) Fiscal Year 2003 2D04 2005 Expenses Governmental acclivities: General government General services Public protection County roads Health and welfare Education Interest on long-tens debt Total governmental activities expenses Business-type acivities: Solid waste Fair & expo center Total business-type activities expenses Total primary government expenses Program Revenues Governmental activities: Charges for services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business-type activities: Charges for services: Solid waste Fair & expo center Operating grants and contributions Capital grants and contributions Total business-type activities program revenues Total primary government program revenues Not Govemmental activities Business-type activities Total primary government net expense General Revenues and Other Changes in Net Assets Governmental activities: Taxes Property Taxes, levied for general purpose Property Taxes, levied for sheriff services Property Taxes, levied for bonded debt Transient room tax Unrestricted grants and contributions Investment earnings Interfund gain (loss) on transfer of capital assets Gain (loss) on sale of capital assets Transfers Total governmental activities Businewlype activities: Taxes Property Taxes, levied for bonded debt Investment earnings Interfund gain (loss) on transfer of capital assets Gain (loss) on sale of capital assets Miscellaneous Transfers Total business-type activities Total primary government Change in Net Assets Governmental activities Business-type activities Total primary government Exhibit Page a-4-5 of X-50~ $ 772,422 $ 328,770 $ 571,128 17,436,802 14,1319,177 18,301,423 29,938,540 35,794,752 35,908,104 9,220,189 8,241,978 9,133,389 20,226,318 19,222,151 20,471,295 1,106, 637 1,143,468 1,151,264 2,648,585 3,265,500 3,486,134 81,349,493 _ 82,1315,796 89,022,737 3,779,593 3,611,080 5,291,801 4,411,767 _ 3,1105,532 4,205,671 8,191,360. 7,116,612 9,497,472 $ 89,540,853 s $90,032,408 $ 98,520,209 $ 15,974,077 $ 33,678,880 $ 38,256,550 36,718,834 21;118,860 23,126,283 1,393,312 645,324 1,486,656 54,086,223 56,243,064 62,869,489 6,008,063 6,651,736 7,102,223 1,561,048 1,1315,780 1,905,840 198,611 109,555 75,496 7,767,722 8,1177,071 9,083,559 $ 81,853,945 $ 64,620,135 $ 71,953,048 $(27,263,270) $(26,1,172,732) $(26,153,248) (423,638) 560,459 (413,913) _$(27,686,908) _E25 111M $(26,567,161) $ 17,778,414 $ 19,950,734 $ 21,637,975 9,040,940 9,671,418 12,890,168 2,861,706 2,912,525 2,824,853 2,967,211 3,004,567 3,048,662 1,106,469 - - 1,415,598 1,144,302 1,758,483 - - 671 - 4,817,833 (22,183) (396,742) _(294,227) (682,685) 34,773,596 41,227152 41,455,944 1,952,415 1,844,947 1,904,154 321,822 229,703 427,756 - - (671) - - (45,016) 2,350,656 - - 396,742 294,227 682,685 5,021,635 2,368,877 2,968,908 $ 39,795,231 $ 43,5'16,029 $ 44,424,852 $ 7,510,326 $ 14,8:34,420 $ 15,302,696 4,597,997 3,329,336 2,554,995 12108,323 $ i36 $$17 -226- DESCHUTES COUNTY, OREGON PROGRAM REVENUES BY FUNCTION/PROGRAM LAST THREE FISCAL YEARS (accrual basis of accounting) (dollars in thousands) Function/Program Governmental activities: General government General services Public protection County roads Health and welfare Education Interest on long-term debt Subtotal governmental activities Business-type actvities: Solid waste Fair & expo center Subtotal business-type activities Total primary government -227- Program Revenues 2003 2004 2005 $ - $ 39 $ 9 14,150 17,005 20,735 9,365 9,540 8,789 11,752 12,133 13,212 17,713 16,383 18,975 1,106 1,143 1,150 54,086 56,243 62,870 6,008 6,667 7,102 1,760 1,710 1,981 7,768 8,377 9,083 $ 61,854 $ 64,620 $ 71,953 Exhibit Page ;;~A of DESCHUTES COUNTY, OREGON General Fund Reserved Unreserved Total General Fund FUND BALANCES, GOVERNMENTAL FUNDS LAST THREE FISCAL YEARS (modified accrual basis of accounting) Fiscal Year 2003 2004 a 2005 4,749,789 5,114,327 5,669,705 $ 4,749,789 $ 5,114,327 $ 5,669,705 All Other Governmental Funds Reserved Unreserved, reported in: Special revenue funds Capital projects funds Debt service funds Total all other governmental funds Exhibit Page $ 652,289 $ 761,961 $ 766,609 22,893,463 27,280,233 34,811,350 24,875,640 10,832,184 9,028,200 2,841,323 1,843,771 1,638,674 $ 51,262,715 $ 40,718,149 $ 46,244,833 -228- ' DESCHUTES COUNTY, OREGON CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST THREE FISCAL YEARS (modified accrual basis of accounting) Revenues Taxes Licenses and permits Fines, forfeitures and penalties Interest and rents ' Intergovernmental Charges for services Other Total revenues Expenditures General government General services Public protection County roads Health and welfare Education Debt service Principal Interest Trustee fees Debt issuance costs Capital outlay Total expenditures Excess of revenues over(under) expenditures Other Financing Sources (Uses) Transfers in Transfers out Loan proceeds Refunding proceeds Payments to escrow agent Proceeds of sale of assets Total other financing sources (uses) Net change in fund balances ' Debt service as a percentage of noncapital expenditures -229- Fiscal Year 2003 2004 2005 $ 32,618,617 $ 35,614,972 $ 40,410,761 439,384 515,516 539,345 1,336,903 1,206,561 1,331,035 1,570,165 1,651,061 2,880,051 38,761,879 38,961,949 41,342,653 15,794,704 18,375,722 19,850,930 1,674,880 1,043,269 3,128,943 92,196,532 97,369,050 109,483,718 764,931 502,021 566,691 16,448,523 22,225,705 16,425,821 29,026,478 32,938,286 35,177,676 9,998,658 9,654,024 11,190,724 22,759,749 21,552,352 23,252,183 1,106,637 1,143,468 1,151,264 2,889,026 4,259,579 3,809,705 2,108,443 3,442,499 3,340,049 - - 7,685 - - 130,918 10,505,046 20,545,960 11,862,923 95,607,491 116,263,894 106,915,639 (3,410,959) (18,894,844) 2,568,079 15,513,525 17,023,022 18,488,400 (15,838,130) (17,428,174) (19,183,564) 27,719,411 7,088,508 3,876,382 - - 1,793,514 - - (1,953,354) 564,945 2,321,725 492,602 27,959,751 9,005,081 3,513,980 $ 24,548,792 L L9,889,7631 $ 6,082,059 6.2% 8.4% 8.0% Exhibit Page aA of ag' DESCHUTES COUNTY, OREGON ASSESSED VALUE AND ESTIMATED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (in thousands of dollars) Real Pro ]Ea Personal Property Manufactured Homes Fiscal Year Assessed Estimated Assessed Estimated Assessed Estimated Ended June 30, Value Actual Value Value Actual Value Value Actual Value 1996 6,632,705 6,632,705 161,816 161,816 52,501 52,501 1997 7,278,547 7,278,547 175,101 175,1011 56,394 56,394 1998 6,556,553 7,814,494 192,301 199,617 52,375 61,023 1999 6,907,243 8,420,905 202,600 204,874 55,422 64,660 2000 7,528,325 9,452,053 228,798 230,424 61,738 69,871 2001 8,231,343 10,543,865 252,161 253,25i' 67,481 77,596 2002 8,953,574 12,016,020 277,972 278,404 71,493 78,095 2003 9,685,677 13,585,512 289,037 289,240 71,257 76,685 2004 10,484,956 15,192,941 289,950 289,962 72,507 80,448 2005 11,497,220 16,890,285 308,985 308,999 73,771 82,344 Sources: Deschutes County Assessor's Department and Oregon Department of Revenue (a) includes tax-exempt property Continued -230- Exhibit 4 Page 24 of a DESCHUTES COUNTY, OREGON ASSESSED VALUE AND ESTIMATED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS (in thousands of dollars) ' I Public Utilities Exemptions-1 I Total Estimated Assessed Taxable Actual Value(a) as a Assessed Estimated Assessed Assessed Taxable Total Direct Percentage Value Actual Value Value Value Value Tax Rate of Estimated _ 242,975 242,975 6,717 7,083,280 7,089,997 3.8396 100.000% ' 230,778 230,778 6,800 7,734,020 7,740,820 4.2087 100.000% 240,338 242,982 7,93.1 7,033,636 8,318,116 4.9996 84.653% ' 234,813 246,645 9,1313 7,390,940 8,937,084 4.6073 82.802% 271,998 278,491 10,344 8,080,515 10,030,839 4.6392 80.660% ' 272,699 300,509 11,11'1 8,812,573 11,175,227 5.0535 78.958% 315,922 332,186 12,9511 9,606,003 12,704,705 5.1485 75.712% ' :325,968 335,247 14,017 10,357,922 14,286,684 8.5285 72.599% 327,493 330,462 15,452 11,159,454 15,893,813 8.0244 70.310% ' 348,827 351,843 16,242 12,212,561 17,633,471 8.5015 69.350% -231- Exhibit F, Page _jcyo of 9:a 19 DESCHUTES COUNTY, OREGON ' DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $1,000 of assessed value) Continued -232- County direct rates General Sheriff (County) Jail Bond Sheriff (Incorporated) Fairgrounds Bond Bend Library Bond Redmond Library Bond Sunriver Library Bond County Fxdension/41-1 CSD 911 CSD 911 Local Option Black Butte Ranch CSD Sunriver Service District Total direct rate City and town rates Bend Redmond Sisters Bend Gap Bond Bend Urban Renewal Special Levy City of Redmond Bond Sunriver Service District Redmond Downtown Urban Renewal Levy Redmond Airport Urban Renewal Levy Library district rates Fire district rates Parks and recreation district rates School district rates Road district rates Other special district rates Year Taxes are Payable 1996 1997 1998 1999 2000 1.2876 1.3800 1.2729 1.1329 1.1669 0.8685 0.7931 1.1592 1.1200 1.1200 0.5310 0.4891 0.8220 0.7800 0.7800 - 0.1358 0.1982 0.1741 0.1350 - 0.1401 0.1556 0.1338 0.1147 - 0.1067 0.1105 0.0976 0.0885 0.0214 0.0208 0.0235 0.0209 0.0224 0.1584 0.1541 0.1696 0.1509 0.1618 0.9727 0.9890 1.0881 0.9971 1.0499 3.8396 4.2087 4.9996 4.6073 4.6392 2.7443 2.6379 2.6647 2.6482 2.6688 6.4348 6.2372 6.1647 7.4055 7.1484 2.6893 2.7817 2.7167 2.5371 2.6374 - - 0.1665 0.1594 0.1135 - - - 0.1490 0.1247 - - - 0.5811 0.5967 - - - 0.5500 0.5500 .1347-1.9012 1.0595.2.3589 .0933-2.7276 .0933-2.7296 .0933-2.7291 .4238-1.5446 .3944-1.4388 .3831-1.5186 .3349-1.3850 .2174-1.4518 .0143-9.9153 .1409.9.7402 .1009-5.0265 .0119-5.1734 .09645.0492 .2407-1.9043 .2190-3.3687 .2514-3.1952 .2514-4.2147 .2296-4.2147 .1396-0.2951 .1231-.02655 .1322-0.3079 .1323-0.3078 .1323-0.3078 Sources: Deschutes County Assessors Office and Deschutes County Finance Department. Exhibit A Page ~ of ' DESCHUTES COUNTY, OREGON DIR ECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $1,000 of assessed value) Year Taxes are Payable ' 2001 2002 2003 2004 2005 1.2000 1.2783 1.2783 1.2783 1.2783 ' 1.1200 1.1200 1.1200 1.1200 1.6000 0.2114 0.2111 0.1913 0.1780 0.1659 0.7800 0.7800 0.7800 0.7800 0.8200 0.1810 0.2031 0.1847 0.1702 0.1617 ' 0.1371 0.1332 0.1182 0.1189 0.0925 0.1087 0.1040 0.0949 0.0916 0.0782 0.0812 0.0847 0.0770 0.0733 0.0708 0.0224 0.0224 0.0224 0.0224 0.0224 0.1618 0.1618 0.1618 0.1618 0.1618 - - - 0.0900 0.0900 1.0499 1.0499 1.0499 1.0499 1.0499 - - 3.4500 2.8900 2.9100 570535 5.1485 8.5285 8.0244 8.5015 2.7898 2.8035 2.8035 2.8035 2.8035 7.0529 6.9987 6.1643 6.0643 6.0643 2.6417 2.6417 2.6417 2.6417 2.6417 0.1460 0.1744 0.1919 0.2045 0.2358 - 0.8230 0.1776 0.1439 3.4500 2.8900 2.9100 0.5197 0.5979 0.5794 0.6500 0.4718 0.2514 0.2476 0.2529 0.2848 - 0.5500 0.5500 0.5500 0.5500 0.5500 .0933-2.7307 .4328-2.7317 .2605-2.7317 .2295-2.7317 .2267-2.7317 ' 2190-1.4610 .2200-1.4610 .2200-1.4610 .2200-1.4610 .2200-1.4610 .0964-5.0251 .0964-5.0251 .0964-5.0251 .1543-5.0251 .0964-5.0251 .2210-4.2147 .4033-4.2147 .3737-4.2147 .4430-3.6500 .3457-3.6500 .1323-0.2807 .2895-0.3717 .1323-0.2895 0.2895 0.2895 -233- Exhibit Pj- Page A s~ of -a~- DESCHUTES COUNTY, OREGON Taxpayer Qwest Corporation PG & E Gas Transmission NW Pacificorp High Desert Development Company LLC Eagle Crest Inc Cascade Natural Gas Corporation Sunriver Resort Limited Partnership Mt. Bachelor Inc. Bend Millwork Systems Inc. Deschutes Brewery Inc. US West Communications Inc. Concord Equity Multiplier Willamette Industries Inc. Brooks Resource Corp. Joseph Pell Eagle Crest Partners Ltd Total PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND 9 YEARS AGO 2005 1996 Percentage of Percentage of Total County Total County Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Value Rank Value Value Rank Value $ 100,061,100 1 0.82% $ - - 76,547,101 2 0.63% 51,186,387 1 0.72% 42,421,000 3 0.35% 43,066,400 3 0.61% 39,334,527 38,353,238 32,122,580 32,984,210 34,127,074 22,037,480 21,700,976 $ 439,689,286 Source: Deschutes County Assessor's Department Exhibit pr Page.2 5. Of 4 0.32% 5 0.31% - 6 0.26% 13,233,754 7 0.27% 20,782,515 8 0.28% - 9 0.18% 10 0.18% - - 49,577,730 - 20,818,485 - 19,438,750 - 19,788,745 - 12,779,590 - 15,445,075 3.60% $ 266,117,431 -234- 8 0.19% 5 0.29% 0.00% 2 0.70% 4 0.29% 6 0.27% 7 0.28% 9 0.18% 10 0.22% 3.75% ' DESCHUTES COUNTY, OREGON PROPERTY TAX LEVIES AND COLLECTIONS ' LAST TEN FISCAL YEARS (amounts expressed in thousands) ' Collected within the Fiscal Year Fiscal Year Taxes Levied _ of the Levy Collections Ended June for the Fiscal Percentage of In Subsequent 30, Year' - Amount Levy Years 1996 15,411 14,601 94.744% 809 1997 17,567 16,644 94.746% 923 1998 21,512 20,406 94.859% 1,105 1999 25,548 24,470 95.780% 1,076 2000 22,513 21,600 95.945% 909 2001 24,320 23,323 95.900% 986 2002 27,923 26,890 96.301% 985 2003 31,644 30,611 96.736% 876 2004 34,408 33,412 97.105% 686 2005 40,721 39,718 97.537% ' Net of discounts and adjustments. -235- Total Collections to Date Percentage of Amount Levy 15,410 99.994% 17,567 100.000% 21,511 99.995% 25,546 99.992% 22,509 99.982% 24,309 99.955% 27,875 99.828% 31,487 99.504% 34,098 99.099% 39,718 97.537% Exhibit Pr Page I~ of a DESCHUTES COUNTY, OREGON RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (dollars in thousands, except per capita) Governmental Activities General Limited Special Certificates Full Faith Fiscal Obligation Tax Assessment of and Credit Capital Year Bonds Bonds Bonds Participation Obligations Leases Loans 1996 $ 33,087 $ 1,040 $ - $ 5,515 $ - $ - $ - 1997 33,557 945 - 5,355 - - - 1998 32,612 840 - 5,180 - - - 1999 31,862 735 - 12,645 - - - 2000 30,610 625 1,291 12,265 - - - 2001 29,266 505 1,255 11,685 - 683 - 2002 27,815 5,790 1,180 11,075 - 767 1,461 2003 26,531 5,615 1,100 10,435 27,505 526 838 2004 25,219 5,396 347 9,760 33,974 342 802 2005 23,264 5,370 286 7,360 38,714 43 400 ' See Schedule 14 for personal income and population data. n/a - Not available. Exhibit Page ' SS of -236- Continued DESCHUTES COUNTY, OREGON RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (dollars in thousands, except per capita) Business-Type Activities General Full Faith Total Percentage Obligation and Credit Primary of Personal Per Bonds Obligations Loans Government Income' Capita' $ - $ - $ - $ 39,642 1.76% 398.97 25,395 - - 65,252 2.69% 636.10 25,395 - - 64,027 2.40% 599.39 25,145 - - 70,387 2.45% 628.83 24,770 - - 69,561 2.22% 596.61 24,300 - - 67,694 2.01% 560.61 23,750 - 550 72,388 2.04% 576.49 24,050 6,190 538 103,328 2.86% 791.79 23,190 6,190 525 105,745 n/a 780.69 22,230 8,853 513 107,033 n/a n/a -237- Exhibit_a Page of DESCHUTES COUNTY, OREGON -238- 0.47% 0.76% 0.70% 0.64% 0.55% 0.48% 0.41% 0.35% 0.30% 0.26% Per Capita= 332.99 574.69 543.04 509.30 474.98 443.61 410.66 387.59 357.39 n/a Fiscal Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS (dollars in thousands, except per capita) General Bonded Debt Outstanding Percentage of General Actual Taxable Obligation Value' of Bonds Property 33,087 58,952 58,007 57,007 55,380 53,566 51,565 50,581 48,409 45,494 ' See Schedule 5 for property value data. 2 Population data can be found in Schedule 14. n/a - Not available. Exhibit Page a of DESCHUTES COUNTY, OREGON DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT ' AS OF JUNE 30, 2005 (dollars in thousands) ' Estimated Estimated Share of Debt Percentage Overlapping ' Governmental Unit Outstanding Applicable Debt Debt repaid with property taxes Bend Library Service District $ 6,080 100.0000% $ 6,080 Black Butte Ranch RFPD 451 100.0000% 451 Central Oregon Community College 6,140 83.7837% 5,144 City of Bend - 0.0000% - City of Redmond 2,134 100.0000% 2,134 Deschutes County School District 1 (Bend-La Pine) 40,820 100.0000% 40,820 Deschutes County School District 2 (Redmond) 48,793 93.5638% 45,653 ' Deschutes County School District 6 (Sisters) 24,650 99.9572% 24,639 La Pine RFPD 1,370 98.5540% 1,350 La Pine Special Sewer District 253 100.0000% 253 ' Redmond Library District 704 100.0000% 704 Sunriver Library District 760 100.0000% 760 ' Subtotal, overlapping debt 127,988 Deschutes County direct debt 74,994 ' Total direct and overlapping debt $ 202,982 Sources: Oregon State Treasury, Debt Management Information System Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of ' the county. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Deschutes County. This process recognizes that, when considering the county's ability to issue: and repay long-term debt, the entire debt burden borne by the ' residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible: for repaying the debt, of each overlapping government. Net property tax backed debt was used as the Debt Outstanding which is derived from the gross property ' backed debt less self-supporting unlimited general obligations and self supporting limited tax general obligation debt. -239- Exhibit Page a5e of Q ~ DESCHUTES COUNTY, OREGON LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (dollars in thousands) Legal Debt Margin Calculation for Fiscal Year 2005 Estimated Actual Value Debt limit (2% of estimated actual value)' Debt applicable to limit: General obligation bonds Total net debt applicable to limit Legal debt margin $17,633,471 352,669 45,949 $ 306,720 Fiscal Year Debt Limit (2%)' Total net debt applicable to limit Legal debt margin total net debt applicable to the limit as a percentage of debt limit 1996 1997 1998 1999 2000 $ 141,800 $ 154,816 $ 166,362 $ 178,742 $ 200,617 33,087 58,952 58,007 57,007 55,380 $ 108,713 $ 95,864 $ 108,355 $ 121,735 $ 145,237 Debt Limit (1%)2 $ 70,900 $ 77,408 $ 83,181 $ 89,371 $ 100,308 Total net debt applicable to limit 1,040 945 840 _ 735 1,916 Legal debt margin $ 69,860 $ 76,463 $ 82,341 $ 88,636 $ 98,392 Total net debt applicable to the limit as a percentage of debt limit ' ORS 287.054 provides: "The aggregate amount of general obligation bonded indebtedness of countries shall not at any time exceed two percent of the real market value of all taxable property in the county." 2 ORS 287.053 provides: "A county shall not have at any one time outstanding limited tax bonded indebtedness in a principal amount that exceeds one percent of the real market value of all taxable property within the county." -240- Continued Exhibit Pageaj.-~ of a: ' DESCHUTES COUNTY, OREGON LEGAL DEBT MARGIN INFORMATION ' LAST TEN FISCAL YEARS (dollars in thousands) ' Legal Debt Margin Calculation for Fiscal Year 2005 Estimated Actual Value $17,633,471 Debt limit (1% of estimated actual value) 2 176,335 Debt applicable to limit: Limited tax bonds 53,223 Less: Amount set aside 190 for repayment of debt ! Total net debt applicable to limit 53,033 Legal debt margin $ 123,302 Fiscal Year 2001 2002 2003 2004 2005 $ 223,505 $ 254,094 $ 285,734 $ 317,876 $ 352,669 53,566 51,565 50,581 48,409 45,949 $ 169,939 $ 202,529 $ 235,153 $ 269,467 $ 306,720 $ 111,752 $ 127,047 $ 142,867 $ 158,938 $ 176,335 1,760 6,970 40,410 45,842 53,033 $ 109,992 $ 120,077 $ 102,457 $ 113,096 $ 123,302 -241- Exhibit P- Page 0 of DESCHUTES COUNTY, OREGON PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS dollars in thousands) Limited Tax Bonds - Series 1992 Limited Tax Bonds - Series 1996 Special Special Fiscal Assessment Debt Service Assessment Debt Service Year Collections Principal Interest Coverage Collections Principal I t t C _ n eres overage 1996 82 40 21 1.35 12 - _ _ 1997 56 40 19 0.95 212 55 35 2 35 1998 41 45 17 0.66 207 60 30 . 2.30 1999 25 45 15 0.42 179 60 27 2 06 2000 24 45 13 0.41 66 65 25 . 0.73 2001 12 50 11 0.20 59 70 22 0.64 2002 6 55 8 0.10 44 70 18 0.50 2003 5 100 5 0.05 31 75 15 0.34 2004 - - - - 10 205 5 0.05 2005 - Full Faith and Credit Obligations - Series 2003 Full Faith and Credit Obligations - Series 2005 Special Special Fiscal Assessment Debt Service Assessment Debit Service Year Collections Principal Interest Coverage Collections Principal Interest C _ overage 1996 - _ _ _ _ 1997 - _ _ _ _ 1998 - _ - _ _ 1999 - _ _ _ _ 2000 - - - - - 2001 - - - - _ 2002 - - _ - - 2003 242 - _ - _ 2004 482 621 52 0.72 - 2005 300 303 30 0.90 81 Note: Details regarding the County's outstanding debt can be found In the notes to the financial statements. Exhibit Page _ 49 r 0f gp'_ -242- Continued DESCHUTES COUNTY, OREGON PLEDGED-REVENUE COVERAGE LAST TEN FISCAL YEARS (dollars in thousands Special Assessment Bonds - Series 2000 Special Assessment Debt Service Collections Principal Interest Coverage 257 - - - 284 36 88 2.29 294 75 71 2.01 203 80 67 1.38 129 753 44 0.16 75 61 19 0.94 -243- Exhibit_~ Page a_Qz of DESCHUTES COUNTY, OREGON DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Personal Per Income Capita (thousands Personal Median School Unemployment Year Population of dollars) Income Age Enrollment Rate 1996 99,362 2,257,055 22,715 n/a 17,652 8.5% 1997 102,581 2,424,296 23,633 n/a 18,052 8.0% 1998 106,820 2,664,935 24,948 n/a 18,1251 7.2% 1999 111,933 2,869,502 25,636 n/a 18,983 6.4% 2000 116,594 3,139,720 26,929 n/a 19,602 5.3% 2001 120,750 3,366,903 27,883 38.11 19,867' 6.4% 2002 125,566 3,540,043 28,193 38.09 20,508 7.7% 2003 130,500 3,611,578 27,880 38.09 20,914 7.7% 2004 135,451 n/a n/a 38.08 21,342 6.8% 2005 n/a n/a n/a n/a 22,044 6.2% Sources: Population, personal income and per capita personal income information provided by the Bureau of Economic Analysis and Portland State University, Population Research Center. Median age based on data obtained from Portland State University. School enrollment provided by the Oregon Department of Education. Unemployment provided by Oregon Employment Department, Oregon Labor Market Information System. Note: Population information are Census Bureau midyear population estimates. Estimates for 2000-2004 reflect county population estimates available as of March 2005. Median age figures for 2001-:2004 based on mid-year data tables. School enrollment is based on the census at the start of the school year. Unemployment rate information, reported as an annual average, is not seasonally adjusted. Unemployment rate for 2005 is an average of January through July 2005. n/a - Not available. Exhibit Page l of -244- ' DESCHUTES COUNTY, OREGON PRINCIPAL EMPLOYERS CURRENT YEAR AND 9 YEARS AG O 2005 1996 Percentage Percentage Employer Employees of Total County Rank Employment Employees Rank of Total County Employment St. Charles Medical Center 2,337 1 3.20% n/a n/a n/a ' Bend/La Pine School District 1,130 2 1.55% n/a n/a n/a Sunriver Resort 870 3 1.19% n/a n/a n/a Mt. Bachelor 750 4 1.03% n/a n/a n/a Deschutes County 721 5 0.99% n/a n/a n/a ' T-Mobile 674 6 0.92% n/a n/a n/a Beaver Motor Coaches 654 7 0.90% n/a n/a n/a iSKY 625 8 0.86% n/a n/a n/a ' Redmond School District 623 9 0.85% n/a n/a n/a JELD-WEN Windows & Doors 521 10 0.71% n/a n/a n/a 8,905 12.21% Sources: Economic Development for Central Oregon, Oregon Department of Education, Deschutes County Finance Department, (Redmond School District, St. Charles Medical Center, n/a - Not available. -245- Exhibit A- Page. of 2~ 11 DESCHUTES COUNTY, OREGON FULL-TIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM LAST THREE FISCAL YEARS Full-time Equivalent Employees as of June 30, 2003 2004 2005 Function/Program General government Executive General services Judicial Financial Assessment Community development Internal Support Services Building Services Information Technology Other Public protection Law enforcement Corrections Protective inspection Public Works Streets & highways Sanitation Health & Welfare Health Welfare Recreation & culture Fair & expo center Other Economic development Total Source: Deschutes County Finance Department. 8.15 8.15 8.00 42.40 43.10 47.00 36.78 37.78 39.18 29.75 30.75 33.25 30.05 29.15 29.15 20.25 20.25 20.50 16.41 15.41 14.84 10.66 10.51 12.33 98.35 101.68 101.68 145.95 147.45 153.30 27.10 27.35 29.35 57.00 57.00 57.00 21.00 23.00 23.00 51.73 50.55 49.45 90.99 89.49 89.85 14.00 14.00 13.00 0.65 0.65 0.55 701.22 706.27 721.43 -246- Exhibit page Hof va- DESCHUTES COUNTY, OREGON OPERATING INDICATORS BY FUNCTION/PROGRAM LAST THREE FISCAL YEARS Fiscal Year 2003 2004 2005 Function/Program Police Physical arrests 1,586 1,386 1,653 Traffic Violations Citations issued 3,592 6,384 6,894 Warnings 5,273 4,521 6,109 Calls for service 25,300 27,041 27,269 Traffic stops 8,771 9,797 11,701 Solid waste Solid waste collected (tons) 176,655 202,040 207,225 Average annual per capita waste generation (pounds) 2,793 2,790 2,904 Recyclables collected (tons) 46,857 46,857 54,225 Road Street resurfacing (miles) 10.10 miles 26.89 miles 22.41 miles 911 emergency services Emergency calls 65,000 63,500 63,994 Police officer initiated calls 209,737 226,471 232,700 Fire department initiated calls 14,253 15,324 16,603 _247_ Exhibit Page-2(46! of DESCHUTES COUNTY, OREGON CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST THREE FISCAL YEARS Function/Program Police Stations Adult correctional facilities Special services complex Road Streets (miles) Streetlights Flashing lights Signals Exhibit -248- Page4( ~of Fiscall Year 2003 2004 2005 4 4 4 1 1 1 1 1 1 992 998 1004 4 4 4 6 6 6 1 2 2 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Exhibit P~- Page a(eg- of rQ9 This page intentionally left blank. Exhibit_~- Pageof AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Internal Control We have audited the financial statements of Deschutes County, Oregon, as of and for the year ended June 30, 2005, and have issued our independent auditors' report thereon dated September 29, 2005. In planning and performing our audit, we considered Deschutes County's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. We noted other matters regarding internal control which have been communicated to management in a separate letter dated September 29, 2005. Accounting Records We found the condition of the accounting records adequate for audit purposes. Collateral Security Cash and investments were adequately secured during the year. Legal Debt Limitation The County has not exceeded its legal debt limitation. Budget We have reviewed procedures for preparation, adoption and execution of the budget for the year ended June 30, 2005, and we have reviewed the preparation and adoption of the budget for the year beginning July 1, 2005. All budgetary procedures were found to be in substantial compliance with statutory requirements -251- Exhibit Paged?Dof ~g9 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS For the year ended June 30, 2005, expenditures exceed appropriations by category as follows: Personnel Amount Fund Solid Waste Operations $ 2,053 Materials & Services Fund Community Development $ 2,648 Insurance Coverage and Fidelity Bonds in Force Insurance coverage and fidelity bonds were reviewed and found to be in compliance with statutory requirements at year-end. Programs Funded From Outside Sources/Financial Reporting Requirements All material programs funded from outside sources were reviewed and found to be in substantial compliance with appropriate laws, rules and regulations governing those programs. Reports filed with grantor agencies were agreed to the County's records, and we found the County to be in substantial compliance with program requirements. See the Single Audit Compliance section of this report. Investments Investments were reviewed and found to be in compliance with statutory requirements. Public Contracts and Purchasing We reviewed the County's procedures for awarding public contracts and construction of public improvements and found them to be in compliance with statutory requirements. Highway Funds Taxes on fuel and motor vehicle use were reviewed and found to be used in compliance with constitutional and statutory requirements. This report is intended solely for the information and use of management, the board of commissioners and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these specified parties. -252- ~r Exhibit 0-f Page o ' AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS HARRIGAN PRICE FRONK & CO. LLP ' Certified Public Accountants & Consultants By: A7 C ndace S. Fronk - a artner ' September 29, 2005 -253- Exhibit Page Of 7 11 This page Intentionally left blank. Exhibit f} Page,,~~of~~ SINGLE AUDIT COMPLIANCE Exhibit A-- Page IN-- of 4LF2- This page intentionally left blank. Exhibit ~ P age ~ of REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH John P. Harrigan. CPA GOVERNMENT AUDITING STANDARDS Wesley B. Price III, CPA Candace S. Fronk, CPA Board of Commissioners Deschutes County, Oregon We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Deschutes County's basic financial statements and have issued our report thereon dated September 29, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of 975 SW Colorado Suite 200 America and the standards applicable to financial audits contained in Government Bend, OR 97702 Auditing Standards, issued by the Comptroller General of the United States. Tel (541) 382-4791 Fax(541)388-1124 Internal Control over Financial Reporting www.bendcpa.com email@bendcpa.com In planning and performing our audit, we considered Deschutes County's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether Deschutes County's ' financial statements are free of material misstatement, we 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 financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of ' noncompliance or other matters that are required to be reported under Government Auditing Standards. -257- Exhibit Page .22~ of 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 - CONTINUED This report is intended solely for the information and use of the audit committee, management, federal awarding agencies, and state pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. HARRIGAN PRICE FRONK & CO. LLP By: Candace S. Fronk - a artner September 29, 2005 -258- Exhibit Page 'Zl- of a. REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 John P. Harrigan. CPA Wesley B. Price III. CPA Candace S. Fronk. CPA Board of Commissioners Deschutes County, Oregon Compliance We have audited the compliance of Deschutes County, Oregon, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2005. Deschutes County's major federal programs are identified in the summary of auditor's results sections of the 97 5 SW Colorado Suite 200 20o accompanying schedule of findings and questioned costs. Compliance with the Bend.OR97702 requirements of laws, regulations, contracts, and grants applicable to each of its Tel (541) 382-4791 major federal programs is the responsibility of Deschutes County's management. Our Fax(541)388-1124 responsibility is to express an opinion on Deschutes County's compliance based on www.bendcpa.com our audit. email@bendcpa.com We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require! that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Deschutes County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Deschutes County's compliance with those requirements. In our opinion, Deschutes County, Oregon, complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2005. Internal Control Over Compliance The management of Deschutes County, Oregon, is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered Deschutes County's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of -259- Exhibit A- Page X27 8' of a$r~ REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 - CONTINUED expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the audit committee:, management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. HARRIGAN PRICE FRONK & CO. LLP By. '-f a2sx- ndace S. Fronk - a partner September 29, 2005 -260- Exhibit page ~ of REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH John P. Harrigan, CPA GOVERNMENT AUDITING STANDARDS Wesley B. Price III, CPA Candace S. Fronk, CPA Board of Commissioners Deschutes County, Oregon We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Deschutes County's basic financial statements and have issued our report thereon dated September 29, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of 9 Colorado Suite 200 200 America and the standards applicable to financial audits contained in Government Bend, OR 97702 Auditing Standards, issued by the Comptroller General of the United States. Tel (541) 382-4791 Fax(541)388-1124 Internal Control over Financial Reporting www.bendcpa.com email@bendcpa.com In planning and performing our audit, we considered Deschutes County's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether Deschutes County's financial statements are free of material misstatement, we 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 financial statement amounts. However, providing an opinion on compliance with those! provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. -257- Exhibit Page_ of o2 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 - CONTINUED This report is intended solely for the information and use of the audit committee, management, federal awarding agencies, and state pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. HARRIGAN PRICE FRONK & CO. LLP By: j -:;~o k Candace S. Fronk - a artner September 29, 2005 -258- Exhibit ~ Page of REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 John P. Harrigan, CPA Wesley B. Price III, CPA Candace S. Fronk, CPA 975 SW Colorado Suite 200 Bend. OR 97702 Tel (541) 382-4791 Fax (541) 388-1 124 www.bendcpa.com email@bendcpa.com Board of Commissioners Deschutes County, Oregon Compliance We have audited the compliance of Deschutes County, Oregon, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) CircularA-133' Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2005. Deschutes County's major federal programs are identified in the summary of auditor's results sections of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of Deschutes County's management. Our responsibility is to express an opinion on Deschutes County's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Deschutes County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Deschutes County's compliance with those requirements. In our opinion, Deschutes County, Oregon, complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2005. Internal Control Over Compliance The management of Deschutes County, Oregon, is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered Deschutes County's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of -259- Exhibit 7' Page of Q81 REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 - CONTINUED expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts, and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the audit committee, management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. HARRIGAN PRICE FRONK & CO. LLP By. L~_ 'i :1~elzc ndace S. Fronk - a partner September 29, 2005 -260- 14 Exhibit, 2 p age o~ DESCHUTES COUNTY, OREGON SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2005 Section I - Summa of Auditor's Results Financial Statements Type of auditors' report issued: Unqualified i Internal Control over financial reporting: • Material weakness(es) identified? yes X no • Reportable condition(s) identified that are not considered to be material weakness(es)? yes X none reported Noncompliance material to financial statements noted? yes X no Federal Awards Internal control over major programs: 0 Material weakness(es) identified? yes X no • Reportable condition(s) identified that are not considered to be material weakness(es)? yes X none reported Type of auditors' report issued on compliance for major programs: Unqualified t Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? yes X no Identification of major programs: CFDA Number(s) Name of Federal Program or Cluster 10.665 Schools and Roads Grants to States 96.283 Center for Disease Control and Prevention: Investigations and Technical Assistance Dollar threshold used to distinguish between type A and type B programs: $ 300.000 Auditee qualified as low-risk auditee? X yes no Section II -Financial Statement Findings No matters were reported ' Section III -Federal Award Findings and Questioned Costs No matters were reported. -261- Exhibit Page 2" of o2 This page intentionally left blank. Exhibit $ Paged of DESCHUTES COUNTY, OREGON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2005 GRANTOR AND PROGRAM TITLE U.S. Department of Aariculture Direct Programs Cooperative Forestry Assistance Cooperative Forestry Assistance Cooperative Forestry Assistance Cooperative Forestry Assistance Cooperative Forestry Assistance Pass Through Pro grams State Department of Human Services Health Division Special Supplemental Nutrition Program for Women, Infants and Children (WIC) State Department of Administrative Services Schools and Roads: Grants to States State Department of Education School Breakfast Program National Lunch School Program Total Department of Agriculture U.S. Deparbnent of Housing and Urban DevelopmeOS Pass Thrown Programs State Housing and Community Services Department Community Development Block GranttState's Program Community Development Block Grant/State's Program Total Department of Housing and Urban Development U.S. Department of the Interior Direct Programs Payments in Lieu of Taxes Pass Through Programs State Department of Administrative Services Non-Sale Disposals of Mineral Material Distribution of Receipts to State and Local Govemments Total Department of the Interior U.S. Department of Justice Direct Programs Sex Offender Management Discretionary Grant Supervised Visitation: Safe Havens for Children State Criminal Alien Assistance Program Bulletproof Vest Partnership Program Bulletproof Vest Partnership Program Community Prosecution & Project Safe Neighborhoods Drug Free Communities Support Program Pass Through Proarams Department of State Police Juvenile Accountability Incentive Block Grant Byme Formula Grant Program State Department of Justice Crime Victim Assistance Crime Victim Assistance Total Department of Justice -263- FEDERAL CFDA FEDERAL NUMBER EXPENDITURE 10.664 $ 14,106 10.664 6,753 10.664 25,507 10.664 16,000 10.664 21,831 10.557 399,380 10.665 4,305,739 10.553 19,595 10.555 26,017 4,834,928 14.228 28,672 14.228 485,965 514,637 15.226 271,863 15.214 2,177 15.227 3,767 277.607 16.203 115,281 16.527 64,458 16.606 10,393 16.607 10,734 16.607 365 16.609 35,000 16.729 81,250 16.523 33,446 16.579 137,500 16.575 17,512 16.575 17,511 523,448 Exhibit A Page of 18'1 DESCHUTES COUNTY, OREGON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2005 -264- FEDERAL CFDA FEDERAL _ NUMBER EXPENDITURE 20.604 6,379 6,379 39.002 443 443 66.606 245,468 66.432 1,830 ' 66.468 55,200 66.807 55,239 , 357,737 93.616 ' 45,334 93.617 3,902 93.217 48,972 93.268 1,249 93.268 82,614 93.283 491,815 93.917 66,983 93.940 26,346 93.994 93,354 93.556 35,594 93.575 53,394 93.667 175,533 93.778 238,390 93.150 34,500 93.558 16,328 93.958 163,711 93.959 192,315 1,770,334 GRANTOR AND PROGRAM TITLE U.S. Department of Transportation Pass Through Proarams Oregon State Sheriffs Association Safety Incentive Grants for Use of Seatbelts Total Department of Transportation General Services Administration Pass Through P[ggrams State Department of General Administration Disposal of Federal Surplus Property Total Department of General Administration Environmental Protection Agency Direct Surveys, Studies, Investigations & Special Purpose Grants Pass Through Programs State Department of Human Services Health Division State Public Water System Supervision Capitalization Grants for Drinking Water State Revolving Fund State Department of Environmental Quality Superfund Innovative Technology Evaluation Program Total Environmental Protection Agency U.S. Department of Health and Human Services Direct Programs Administration for Children and Families Mentoring Children of Prisoners Pass Through Programs Secretary of State Voting Access for Individuals with Disabilities-Grants to States State Department of Human Services Health Division Family Planning: Services Immunization Grants Immunization Grants (Noncash Assistance - Vaccine) Center for Disease Control and Prevention: Investigations and Technical Assistance HN Care Formula Grants HIV Prevention Activities-Health Department Based Maternal and Child Health Services Block Grant to States State Commission on Children and Families Promoting Safe and Stable Families Child Care and Development Block Grant Social Services Block Grant Medical Assistance Program State Departrnent of Human Services Mental Health Division Projects for Assistance in Transition from Homelessness (PATH) Temporary Assistance for Needy Families Block Grants for Community Mental Health Services Block Grants for Prevention and Treatment of Substance Abuse Total Department of Health and Human Services Exhibit A- Page O-&-- 0 f DESCHUTES COUNTY, OREGON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2005 GRANTOR AND PROGRAM TITLE Department of Homeland Security Pass Through Programs Department of State Police Emergency Management Performance Grants Total Department of Homeland Security Total Federal Assistance -265- FEDERAL CFDA FEDERAL NUMBER EXPENDITURE 97.042 34,837 34,837 $ 8.320,550 Exhibit A .Page a~ of a This page intentionally left blank. Exhibit Page an of ~ John P. Harrigan. CPA September 29, 20011) Wesley B. Price III, CPA Candace S. Fronk, CPA Audit Committee Deschutes County 1300 NW Wall Street Bend, Oregon 97701 We have audited the financial statements of Deschutes County, as of and for the year ended June 30, 2005, and have issued our report thereon dated September 29, 2005. In planning and performing our audit of the financial 97 5 SW Colorado Suite 200 200 statements, we considered the computer systems, accounting processes and Bend, OR 97702 operations of Deschutes County. Such considerations were made solely for Tel(541)382-4791 the purpose of determining our audit procedures and not to provide assurance Fax(541)388-1124 concerning such computer systems, accounting processes and operations. www.bendcpa.com email@bendcpa.com However, we noted certain matters which, in our judgment, are opportunities for strengthening internal controls and operating efficiency and which we considered necessary to communicate to you. These matters are summarized below. ORCATS Tax Assessment and Collection Software We noted during our fieldwork that there is a significant amount of reconciliation needed throughout the year by the tax department to ensure that turnovers are properly made to taxing districts and state reporting is accurate. The County's tax department has worked very hard to achieve these goals. The reconciliations, however, are becoming more tedious and time-consuming. Based upon our discussions with tax department staff and our observations and testing it appears that this is caused by the deficiencies in the software, which is designed more for assessing and tracking individual properties than accounting for the related revenues and receivables in total and as of particular dates. The program does not appear to utilize double- entry accounting. Once reconciled by the tax collector, variances between one year's ending balances and the next year's beginning balances, for example, are minuscule, but do persist. We encourage the County, particularly the tax collector, to work with the software developer to improve the reporting ability and period-end cutoff in the software to reduce the inefficient use of County staff time. Exhibit Page _L_ of 2 Audit Committee Deschutes County September 29, 2005 Page 2 Prior Year Recommendations Real Property Records We commend the County's staff for the progress made in updating the listing of all parcels of land and buildings owned by the County. This is an important step in this area for accurate financial reporting for the County. We encourage the annual update of this list and continued communication between responsible County departments to help ensure the accuracy of this list. Accounting for Government-Wide Financial Statement Amounts We also would like to commend the finance staff for significant progress in integrating the adjustments required for the full-accrual, government-wide statements into the HTE software and into the monthly accounting procedures. We believe this made for a more efficient and less error-prone year-end process. As stated in our engagement letter dated July 6, 2005, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are presented in accordance with generally accepted accounting principles of the United States of America. Because of the concept of reasonable assurance and because we did not perform detailed examinations of all transactions, there is risk that other matters affecting the County's operations may exist and not be detected by us. We would like to extend our appreciation to the finance department's management and staff for their patience and support while we conducted our audit. Please contact us at 382-4791 if you have any questions or concerns regarding the matters discussed above. This report is intended solely for the information and use of the County's audit committee, management and the Board of Commissioners and is not intended to be and should not be used by anyone other than these specified parties. Harrigan Price Fronk & Co. LLP PADATA\CLIENTS\DATA1\14720 DESCHUTES COUNTY\14720MGT.DOC Exhibit 3 Page - _of I DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2005 Exhibit 0- Page 2 of~ DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT DISTRICT OFFICIALS JUNE 30, 2005 GOVERNING BODY Deschutes County Commissioners Mike Daly Dennis Luke Tom DeWolf Executive Board Chief Ron Oliver, Chair Sheriff Les Stiles, Vice Chair Chief Andy Jordan Chief Larry Langston Chief Taylor Robertson Chief Cliff Vaniman Registered Agent Michael Maier 1300 NW Wall Bend, Oregon 97701 Exhibit C Page 3 of DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT TABLE OF CONTENTS YEAR ENDED JUNE 30, 2005 Page DISTRICT OFFICIALS INDEPENDENT AUDITORS' REPORT .............................................................................:...............................1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets 9 Statement of Activities 10 Fund Financial Statements Governmental Funds - Balance Sheet 11 Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balances 12 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities 13 Schedule of Revenues and Expenditures -Actual and Budget (Budgetary Basis) General Fund 14 Reserve Fund 15 Notes to Financial Statements 16 OTHER SUPPLEMENTARY INFORMATION Schedule of Property Tax Transactions 23 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS 24 Exhibit C Page -Q of INDEPENDENT AUDITORS' REPORT John P. Harrigan. CPA Wesley B. Price III. CPA Deschutes County Commissioners and Executive Board Candace S. Fronk. CPA Deschutes County 911 County Service District Deschutes County, Oregon We have audited the accompanying financial statements of the governmental activities and each major fund of Deschutes County 911 County Service District, a component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Deschutes County 911 County Service District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Deschutes County 911 County Service District's management. Our 975 SW Colorado responsibility is to express opinions on these financial statements based on our audit. Sire 200 The prior year summarized comparative information has been derived from the District's Bend, OR 97702 2004 financial statements that were audited by us; our report dated November 8, 2004, Tel (541) 382-4791 expressed an unqualified opinion. Fax (541) 388-1 124 www.bendcpa.com We conducted our audit in accordance with auditing standards generally accepted in email@bendcpa.com the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Deschutes County 911 County Service District as of June 30, 2005, and the respective changes in financial position thereof, and the respective budgetary comparison schedules for the General and Reserve Funds for the year then ended in conformity with generally accepted accounting principles in the United States of America. The accompanying management discussion and analysis starting on page 3 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Exhibit Page _ C of Deschutes County Commissioners and Executive Board Deschutes County 911 County Service District Page 2 Our audit was conducted for the purpose of forming opinions on the financial ' statements that collectively comprise Deschutes County 911 County Service District's basic financial statements. The other supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. ' The supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants By: ' Z 3~- d'andace S. Fronk-- partner August 30, 2005 Exhibit L' Page of 33 MANAGEMENT'S DISCUSSION AND ANALYSIS Exhibit C Page g of DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 As management of Deschutes County 911 County Service District, we offer readers of Deschutes County 911 County Service District's financial statements this narrative overview and analysis of the financial activities of Deschutes County 911 County Service District, for the fiscal year ended June 30, 2005. Financial Highlights • The assets of Deschutes County 911 County Service District exceeded its liabilities at June 30, 2005, by $2,279,000. Of this amount, $1,960,000 is unrestricted. • Total net assets increased by $717,000. • As of June 30, 2005, Deschutes County 911 County Service District's governmental funds reported combined ending fund balance of $2,046,000. • As of June 30, 2005, the unreserved fund balance in the General Fund was $1,763,000, or 55% of total General Fund fiscal year 2004-2005 expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Deschutes County 911 County Service District's basic financial statements. These basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and,3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of Deschutes County 911 County Service District's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of Deschutes County 911 County Service District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or ' decreases in net assets may serve as a useful indicator of whether the financial position of Deschutes County 911 County Service District is improving or deteriorating. The Statement of Activities presents information showing how Deschutes County 911 County Service District's net assets changed during the fiscal year ended June 30, 2005. Changes in net assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash or , other financial assets, flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued vacation, that will result in cash flows in future fiscal periods. Each of these government-wide financial statements, Statement of Net Assets and Statement of Activities, ' show the functions of Deschutes County 911 County Service District that are supported primarily by taxes and inter-governmental revenues (governmental activities). The governmental activity of Deschutes County ' 911 County Service District is public protection. -3- Exhibit C ' Page 8 of .3-3-- DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 The government-wide financial statements can be found on pages 9-10 of this report. ' Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been ' segregated for specific activities or objectives. Deschutes County 911 County Service District, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Each of the funds of Deschutes County 911 County Service District is ' classified as governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions as ' governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. ' Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. A reconciliation from the ' governmental funds Balance Sheet to the government-wide Statement of Net Assets and a reconciliation from the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances.to the government-wide Statement of Activities have been included in this report. ' Deschutes County 911 County Service District reported activity in two individual governmental funds during the fiscal year ended June 30, 2005. Information is presented separately in the governmental funds Balance Sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances for the General Fund and the District's reserve fund. Deschutes County 911 County Service District adopts an annual budget for each of its funds. A budgetary comparison statement has been provided for each of these funds to demonstrate compliance with the annual budget. ' The governmental fund financial statements can be found on pages 11-13 of this report. Notes to the Financial Statements ' The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 16-22 of this report. Government-wide Financial Analysis Net assets, at a specific point in time, serve as a useful indicator of an entity's financial position. In the case of Deschutes County 911 County Service District, assets exceed liabilities by $2,279,000 at June 30, 2005. -4- Exhibit C Page C? of 33__ DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND'ANALYSIS YEAR ENDED JUNE 30, 2005 Fourteen percent of Deschutes County 911 County Service District's net assets represent its investment in capital assets (equipment). Deschutes County 911 County Service District uses these capital assets to provide services to citizens and these net assets are not available for future spending. The remaining 86%, $1,960,000, of Deschutes County 911 County Service District's net assets may be used to meet the County's on-going obligations to citizens and creditors. As of June 30, 2005, Deschutes County 911 County Service District reports positive balances in both categories of net assets (Invested in capital assets and Unrestricted) for the government as a whole and for the governmental activities. Deschutes County 911 County Service District's net assets increased by $717,000 during the year ended June 30, 2005. Deschutes County 911 County Service District's Comparative Net Assets Governmental Activities 2005 2004 Current assets Capital assets Total Assets Current liabilities Long-term liabilities Total Liabilities Net Assets $ 2,160,050 $ 1,543,531 319,273 215,002 2,479,323 1,758,533 26,931 57,079 173,055 139,441 199,986 196,520 $ 2,279,337 $ 1,562,013 Governmental Activities Governmental activities, the only type of activity of Deschutes County 911 County Service District, increased net assets by $717,000 during the fiscal year ended June 30, 2005. Key elements of this increase are as follows: • Property taxes increased by $245,000 (9%) over the prior year. Most of this increase is due to the increase in the assessed valuation of property in Deschutes County 911 County Service District. Exhibit i✓ Page I Q of -5- DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Deschutes County 911 County Service District's Comparative Changes in Net Assets Governmental Activities 2004 2005 (Restated) Program revenues Charges for services $ 22,511 $ 28,603 General revenues Property taxes 2,961,762 2,716,872 Investment earnings 42,729 16,613 Intergovernmental revenues 804,937 639,361 Total Revenues 3,831,939 3,401,449 Expenses Public safety 3,089,769 2,473,595 Loss on disposal of assets 24,846 Total Expenses 3,114,615 2,473,595 Change in net assets 717,324 927,854 Net Assets - Beginning of the year 1,562,013 634,159 Net Assets - End of year $ 2,279,337 $ 1,562,013 Financial Analysis of the District's Funds I Deschutes County 911 County Service District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Deschutes County 911 County Service District's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Deschutes County 911 County Service District's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending as of the end of the fiscal year. ' As of June 30, 2005, $2,046,000 is the reported combined ending fund balance for Deschutes County 911 County Service District's governmental funds, an increase of $645,000 from June 30, 2004. This increase is due primarily to the retention of the property taxes received from the four-year local option levy approved by ' the voters March 2003. -6- Exhibit C Page Ll of 35 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT I MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 As of June 30, 2005, the fund balance of Deschutes County 911 County Service District's General Fund is $1,763,000, all unreserved. One measure of the General Fund's liquidity is the relationship of both the unreserved and the total fund balance to the Fund's total expenditures. The fund balance as of June 30, 2005, for the General Fund is 55% of total General Fund fiscal year 2004-2005 expenditures. Deschutes County 911 County Service District's General Fund balance increased by $511,000 during the ' fiscal year ended June 30, 2005. General Fund Budgetary Highlights Differences between the Deschutes County 911 County Service District's General Fund budget as originally ' adopted and the final amended budget were due to appropriation transfers required for greater than originally budgeted amount for health care costs and anticipated additional capital outlay expenditures. General Fund actual revenues exceeded estimated revenues by $357,000, of which $99,494 was due to actual property ' taxes exceeding the estimated amount and state revenues (telephone taxes) exceeding estimates by $222,715. Capital Asset and Debt Administration Capita! Assets Deschutes County 911 County Service District's investment in capital assets for its governmental activities as of June 30, 2005, is $319,000 net of accumulated depreciation. This investment in capital assets includes equipment and vehicles. Additional information on Deschutes County 911 County Service District's capital assets is included in Note 3 on page 21 of this report. Long-Term Debt The District has no long-term debt. Deschutes County 911 County Service District has not been separately rated by any of the bond rating agencies. Key Economic Factors and Budgets Information for the Future • The economy of Deschutes County has been robust, especially in residential and commercial construction. Deschutes County has experienced the highest growth rate of all Oregon counties over the past twelve years. • It is anticipated the cost of providing health benefits to District employees will increase 15% in the next fiscal year. -7- Exhibit C- Page l Z of I DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT I MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 • Tax revenues from the four years (fiscal year 2003-2004 through fiscal year 2007-2008) are expected ' to generate reserves against future increases in costs of providing the residents of Deschutes County with efficient emergency services. ' The rates for contributions to the Oregon Public Employees Retirement System were reduced effective July 1, 2003, throughout the State of Oregon. The District has set aside reserves to offset possible increases in the rates. ' Requests for Information This financial report is designed to provide a general overview to those parties interested in Deschutes County 911 County Service District's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Bend, Oregon, 97701. -8- Exhibit.. Page __L*~~ of BASIC FINANCIAL STATEMENTS Exhibit C, Page __L.J_ of 11 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT STATEMENT OF NET ASSETS JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) 2005 2004 ASSETS Cash and investments Property taxes receivable Accounts receivable Equipment and vehicles Accumulated depreciation TOTAL ASSETS LIABILITIES Accounts payable Accrued liabilities Noncurrent liabilities Accrued compensated absences TOTAL LIABILITIES NET ASSETS Invested in capital assets Unrestricted TOTAL NET ASSETS See notes to financial statements -9- Exhibit Page -L5:~_ of 3?) Primary Government Governmental Acitivities $ 1,781,996 $ 1,225,914 109,300 106,639 268,754 210,978 735,326 821,129 (416,053) (606,127) 2,479,323 1,758,533 25,601 57,079 1,330 173,055 139,441 199,986 196,520 319,273 215,002 1,960,064 1,347, 011 $ 2,279,337 $ 1,562,013 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 ' (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) ' Program Revenues Operating Grants Net (Expense) Revenue and Charges for and Changes in Net Assets Expenses Services Contributions 2005 2004 Primary government ' Government activities Public safety $ 3,089,769 $ 22,511 $ $ (3,067,258) $ (2,444,992) General Revenues: ' Property taxes 2,961,762 2,716,872 Investment earnings 42,729 16,613 Intergovernmental revenues 804,937 639,361 Loss on disposl of fixed. assets (24,846) Total general revenues 3,784,582 3,372,846 Change in net assets 717,324 927,854 ' Net Assets - Beginning of year as originally stated 1,562,013 707,491 Prior period adjustment (73,332) Net Assets - Beginning of year as adjusted 1,562,013 634,159 Net Assets - End of year $ 2,279,337 $ 1,562,013 ' See notes to financial statements -10- i Exhibit Page _L _(,o_ of _33 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT GOVERNMENTAL FUNDS - BALANCE SHEET YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) General ASSETS Cash and investments Property taxes receivable Accounts receivable TOTAL ASSETS LIABILITIES Accounts payable Accrued liabilities Deferred revenue TOTAL LIABILITIES FUND BALANCES Unreserved TOTAL LIABILITIES AND FUND BALANCES Reserve Totals 2005 2004 $ 1,499,540 $ 282,456 $ 1,781,996 $ 1,225,914 109,300 109,300 106,639 268,754 268,754 210,978 $ 1,877,594 $ 282,456 $ 2,160,050 $ 1,543,531 $ 25,600 $ $ 25,600 $ 57,079 1,330 1,330 87,439 87,439 85,224 114,369 114,369 142,303 1,763,225 282,456 2,045,681 1,401,228 $ 1,877,594 $ 282,456 $ 2,160,050 $ 1,543,531 Fund Balances, above Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the fund. Some of the District's taxes will be collected after year-end, but are not currently available resources and, therefore, are not reported in the fund. Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the fund. Net assets of governmental activities, page 9. See notes to financial statements -11- $ 2,045,681 $ 1,401,228 319,273 215,002 87,438 85,224 (173,055) (139,441) $ 2,279,337 $ 1,562,013 Exhibit -A21 Page _L2 of -S3 - DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT GOVERNMENTAL_ FUNDS - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Revenues Taxes and assessments Interest Charges for services Intergovernmental revenues Local State TOTALREVENUES Expenditures Public safety Capital outlay TOTAL EXPENDITURES Excess of revenues over (under) expenditures Other financing sources (uses) Transfers between funds Net change in fund balances FUND BALANCES - Beginning of year FUND BALANCES - End of year Reserve Totals General Fund Fund 2005 2004 $ 2,959,547 $ $ 2,959,547 $ 2,702,019 39,378 3,351 42,729 16,613 22,511 22,511 28,603 59,222 59,222 33,204 745,715 745,715 606,157 3,826,373 3,351 3,829,724 3,386,596 2,791,017 2,791,017 2,444,761 394,254 394,254 201,703 3,185,271 3,185,271 2,646,464 641,102 3,351 644,453 740,132 (130,000) 130,000 511,102 133,351 644,453 740,132 1,252,123 149,105 1,401,228 661,096 $ 1,763,225 $ 282,456 $ 2,045,681 $ 1,401,228 See notes to financial statements -12- Exhibit Page / R' of DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 Amounts reported for governmental activities in the Statement of Activities are different because: 2005 2004 Net change in fund balances - total governmental funds, page 12 Some expenses reported in the Statement of Activities (e.g. the change in accrued compensated absences) do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays ($185,626) exceed depreciation ($56,509) in the current period. Repayment of principal on Long-Term Debt consumes current financial resources in the governmental funds, however, these amounts are not included in the Statement of Activities. Property tax revenue is recognized under the modified accrual basis of accounting only to the extent it has been collected within 60 days of year-end. On the accrual basis Statement of Activities, such revenue is recognized regardless of when collected. $ 644,453 $ 740,132 (33,614) 4,209 129,117 (17,490) 186,150 2,214 14,853 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. This includes gains and losses on the disposal of assets. (24,846) Change in net assets of governmental activities, page 10 See notes to financial statements -13- $ 717,324 $ 927,854 Exhibit CIS Page of DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT ' SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET (BUDGETARY BASIS) ' GENERAL FUND YEAR ENDED JUNE 30, 2005 Budgeted Amounts Original Final REVENUES Property taxes Interest Charges for services Intergovernmental Local State TOTALREVENUES EXPENDITURES Personnel services Materials and services Capital outlay Contingency TOTAL EXPENDITURES Excess of revenues over (under) expenditures OTHER FINANCING USES Transfers to other funds TOTAL OTHER FINANCING USES Excess (deficiency) of revenue and other financing sources over (under) expenditures and other financing (uses) FUND BALANCE - Beginning of year FUND BALANCE - End of year $ 2,860,000 $ 2,860,000 10,700 10,700 30,500 30,500 Actual Variance with Amounts Final Budget $ 2,959,547 $ 99,547 39,378 28,678 22,511 (7,989) 45,000 45,000 59,222 14,222 523,000 523,000 745 715 222 715 , , 3,469,200 3,469,200 3,826 373 357 173 , , 2,364,242 2,370,156 2,209,698 (160,458) 503,840 605,840 581,319 (24,521) 289,500 496,753 394,254 (102,499) 781,618 466,451 (466,451) 3,939,200 3,939,200 3,185,271 (753,929) (470,000) (470,000) 641,102 1,111,102 (130,000) (130,000) (130,000) (130,000) (130,000) (130,000) (600,000) (600,000) 511,102 1,111,102 1,252,123 1,252,123 $ (600,000) $ (600,000) $ 1,763,225 $ 2,363,225 See notes to financial statements -14 Exhibit- 0 Page Qp of -3 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET (BUDGETARY BASIS) RESERVE FUND YEAR ENDED JUNE 30, 2005 REVENUES Interest EXPENDITURES TOTAL EXPENDITURES Excess of revenues over (under) expenditures OTHER FINANCING SOURCES Transfers in from other funds Excess of revenues and other sources over (under) expenditures and other sources FUND BALANCE - Beginning of year FUND BALANCE - End of year Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ $ $ 3,351 $ 3,531 3,351 3,351 130,000 30,000 130,000 130,000 130,000 133,351 3,351 148,000 148,000 149,105 1,105 $ 278,000 $ 278,000 $ 282,456 $ 4,456 See notes to financial statements -15- Exhibit _ Page _,2.L of _3_3 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District The Deschutes County 911 Service District was established under ORS 401.720 on April 13, 1988, for the purpose of providing emergency communication (911) services for Deschutes County. The Deschutes County Board of Commissioners is the governing body of the District. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the activities of the government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support. The District has no proprietary or fiduciary funds. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenues received after this period are considered unavailable. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences are recorded only when payment is due. Property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District. -16- Exhibit Page of DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued The District reports the following governmental funds: General Fund - The General Fund is utilized to account for the transactions of the District. Property taxes and law enforcement contracts are its principle sources of revenue. Expenditures are for the operation and administration of the District. Reserve Fund - The Reserve Fund is utilized to account for capital outlay transactions of the District. Transfers from the General Fund and interest are its principal sources of revenue. Expenditures are for capital outlay of the District. Budget Policy The District prepares a budget for all funds which meets the requirements of state law. The budget is prepared on the modified accrual basis of accounting. The resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. Total personnel services, materials and services, debt service, capital outlay and other expenditures are the levels of control established by resolution. The detailed budget document provides for specific detailed information for the above-mentioned expenditure categories. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriations resolution. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Appropriations lapse as of year-end. Reporting Entity The District has adopted the position of the American Institute of Certified Public Accountants Governmental Accounting Standards Board regarding the definition of the "reporting entity." The basic criterion for determining the organizations, activities and functions of related agencies that should be included in a governmental unit's component unit financial statements is the exercise of oversight responsibility over such agencies by the governmental unit's elected officials. The manifestations of such oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. There were no specific agencies which required consideration under the criterion in the current fiscal year for inclusion in the District's reporting entity. Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes County, since the District's governing board is comprised of the Deschutes County Commissioners. -17- Exhibit Page ,23 of 33 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Comparative Totals The financial statements include prior-year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30, 2004, from which such summarized information was derived. Cash and Investments The District maintains merged bank accounts and investments for its funds in a central pool of cash and ' investments with Deschutes County. This pool includes amounts in demand deposits and investments in the Oregon State Treasurer's Local Government Investment Pool (LGIP). The investment policy of the County is to invest in LGIP and interest bearing demand deposits with local banks and to transfer ' resources to the general checking account as the need arises. This policy is in accordance with ORS 294.035 which specifies the types of investments authorized for municipal corporations. Deschutes County allocates earnings on investments to each of the District's funds based on daily cash balances. Investments are stated at cost which approximates fair value ' Capital Assets Capital assets, which include equipment and vehicles, are reported in the government-wide financial statements. In the governmental fund statements, capital assets are charged to expenditures as purchased. Capital assets are recorded at historical cost. Donated assets are recorded at estimated fair market value as of the date of the donation. Capital assets are defined by the District as assets with an initial cost of $5,000 or more and an estimated useful life greater than two years. Additions or improvements and other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Major outlays for capital assets and improvements are capitalized as projects are constructed. For budgetary purposes, assets with an individual cost of $1,500 or more and a life of two years or more are categorized as capital outlay. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Assets and is calculated on the straight-line basis over the following estimated useful lives: Asset Years Equipment and Vehicles 5 years -18- Exhibit Page .4 of 33 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED ' Compensated Absences Accumulated vested vacation pay is accrued as it is earned. Accrued vacation payable is recorded at ' actual accrued hours times current pay rates plus related fringe benefits. For governmental funds, the amount is maintained separately and represents a reconciling item between the fund-level and government-wide presentations. ' Sick pay, which does not vest, is recognized when leave is taken. Property Taxes/Deferred Revenue Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied July 1 and property owners have the option of paying the full amount November 15 or February 15 less a discount, or paying in three installments, November 15, February 15 and May 15. Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May 15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2005 fiscal year tax levy was $3,045,592. Management has determined that due to the remedies available to collect property taxes, no allowance for uncollectible accounts is necessary. Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary collecting agency. Uncollected property taxes are shown on the governmental balance sheet as receivables. Collections within sixty days subsequent to year-end have been accrued and the remaining taxes receivable are recorded as deferred revenue on the modified accrual basis of accounting since they are not deemed available to finance operations of the current period. Undesignated Fund Balance Undesignated fund balance indicates the portion of fund equity which is available for budgeting in future periods. Reserved fund balance indicates the portion of fund equity which is legally restricted, such as for capital outlay. Estimates The preparation of financial statements in conformity with generally accepted accounting principals in the United States of America requires management to make estimates and assumptions that effect certain reported amounts and disclosures. NOTE 2 - CASH AND INVESTMENTS The District participates in the Oregon State Treasurer's Local Government Investment Pool (LGIP), a non- SEC regulated, open-ended, no-load diversified portfolio created under ORS 294.805 to 294.895. The -19- Exhibit Page_ of DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 2 - CASH AND INVESTMENTS - CONTINUED LGIP is administered by the State Treasurer and the Oregon Investment Council with the advice of the Oregon Short-Term Fund Board. The Oregon State Treasurer's Office has calculated the fair value of the underlying investments of the LGIP and the District's share of market value is reflected below. The portfolio has at least 50% of its investments maturing within 93 days and up to 25% maturing in one to three years. As of June 30, 2005, the District has the following investment: Investment Maturities Fair Value Oregon State Treasurer's Local Governmental Investment Pool Interest Rate Risk 6 months average $ 1,781,996 The District does not have a formal investment policy that limits investment maturities as a means of ' managing its exposure to fair value losses arising from increasing interest rates beyond the limits provided by State statute. Credit Risk State law limits investments to obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers' acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds and obligations of states and municipalities. The District has no investment policy that would further limit its investment choices. The District's investment in the Oregon State Treasurer's Local Governmental Investment Pool is not rated. The Pool is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. ' Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure on the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investment in the Deschutes County investment pool is not deemed to be a security, which is a transferable financial instrument that evidence ownership and is, therefore, not ' subjected to custodial credit risk. -20- ' Exhibit Page 't4- of - DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS ' JUNE 30, 2005 NOTE 3 - CAPITAL ASSETS ' Capital asset activity for the fiscal year ended June 30, 2005, is as follows: Balance Balance ' July 1, 2004 Additions Deletions June 30, 2005 Equipment and Vehicles $ 821,129 $ 185,626 $ (271,429) $ 735,326 , Less accumulated depreciation (606,127) (56,509) 246,583 (416,053) $ 215,002 $ 129,117 $ (24,846) $ 319,273 The District follows the County's capitalization threshold which is set at $5,000 for individual items that have a life greater than two years. NOTE 4 - PENSION PLAN Plan Description The District contributes to the Public Employees Retirement System (PERS), an agent multiple-employer defined benefit pension plan administered by the State of Oregon. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The State of Oregon assigns the authority to establish and amend benefit provisions to the PERS Board of Trustees. PERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to PERS, P.O. Box 23700, Tigard, Oregon, 97281-3700 or telephone at 888-320-7377. Funding Policy Plan members are required to contribute 6.0% of their annual covered salary and the District is required to contribute at an actuarially determined rate. The District's rate for covered employees hired prior to August 2003 is 5.35% and 8.04% for those hired after that date. The contribution requirements of plan members and the District are established and may be amended by the PERS Board of Trustees. The District's contributions to PERS for the years ending June 30, 2005, 2004 and 2003 were $158,415, $155,456 and $180,948, respectively, equal to the required contributions for each year. The District pays both the employee and the employer's cost. All employees are required by law to submit the contributions adopted by PERS and the employees' contributions are calculated in conformance with standards of GASB Statement No. 27. There is no net pension obligation. The contributions actually made are equal to the annual pension cost. See the primary government's financial statements for trending analysis. -21- Exhibit Page -7 of 33 DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT ' NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 5 - RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage and destruction of assets; errors and omissions; and natural disasters for which the District participates in Deschutes County's self insurance program. There have been no settlements in excess of insurance coverage and reserves for the year ended June 30, 2005. NOTE 6 - COMMITMENTS AND CONTINGENCIES ' The District is a defendant in various pending litigation proceedings. Management believes any losses arising from these actions will not materially affect the District's financial position. NOTE 7 - RECEIVABLES The District considers all receivables as fully collectible; therefore, no allowance for uncollectibles has been established. -22- Exhibit C Page 8- of 3 OTHER SUPPLEMENTARY INFORMATION Exhibit C. Page ,:5~)- of DESCHUTES COUNTY 911 COUNTY SERVICE DISTRICT SCHEDULE OF PROPERTY TAX TRANSACTIONS YEAR ENDED JUNE 30, 2005 Beginning Balance and Interest Tax Year 2004-05 Levy Adjustments (Discounts) 2004-2005 $ 3,045,592 $ (13,050) $ (71,371) 2003-2004 78,472 (4,282) 2,701 2002-2003 17,685 (158) 1,234 2001-2002 7,222 (377) 855 2000-2001 2,497 (24) 527 1999-2000 407 (9) 69 1998-1999 125 14 Prior 209 (1) 12 Totals $ 3,152,209 $ (17,901) $ (65,959) Adjustments for Accruals July 1, 2004 June 30, 2005 Modified accrual basis tax revenue Exhibit C. Page 3 0 of 3 -23- Turnover From County Treasurer $ 2,885,634 54,423 10,813 5,468 2,400 240 42 29 2,959,049 (21,415) 2,913 $ 2,940,547 Taxes Receivables June 30, 2005 $ 75,537 22,468 7,948 2,232 600 227 97 191 $ 109,300 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Exhibit Q, Page _3j of 3 _ AUDIT COMMENTS AND DISCLOSURES [REQUIRED BY STATE REGULATIONS Internal Control We have audited the basic financial statements of the Deschutes County 911 County Service District (the District), as of and for the year ended June 30, 2005, and have issued our report thereon dated August 30, 2005. In planning and performing our audit, we considered the District's internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control over financial reporting that we consider to be material weaknesses. Accounting Records We found the condition of the accounting records adequate for audit purposes. Collateral Cash and investments are pooled with Deschutes County and were adequately secured during the year. Indebtedness The District's short-term and long-term debt was found to be within legal limitations on the amount of debt ' which may be incurred, liquidation of debts were within the prescribed period of time and indebtedness was in compliance with provisions of bond indentures and other agreements, including restrictions on the use of monies available to retire indebtedness. Budgeting We reviewed the District's procedures for preparation, adoption and execution of its budget for the year ended June 30, 2005, and the procedures for preparation and adoption of their budget for the year beginning July 1, 2005, and found them to be in compliance with statutory requirements. Insurance Coverage and Fidelity Bonds ' Insurance coverage and fidelity bonds were reviewed and found to be in compliance with statutory requirements. ' Programs Funded from Outside Sources Requirements The District had no programs which required review or comment. ' -24- ' ,I Exhibit Page d of 33 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Public Contracts and Purchasing Procedures for public contracts and purchasing were reviewed and found to be in compliance with statutory requirements. Investments Investments were reviewed and found to be in compliance with statutory requirements. Financial Reporting Requirements The District was not required to file financial reports with governmental agencies. Highway Funds The District does not receive any highway funds. This report is intended solely for the information and use of management, the board of directors and the ' Oregon Secretary of State and is not intended to be and should not be used by anyone other than these specified parties. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants C By: 11~&& ndace S. Fronk - a partner August 30, 2005 -25- Exhibit Page of '33 DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2005 Exhibit Page of .1 DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT DISTRICT OFFICIALS JUNE 30, 2005 GOVERNING BODY Deschutes County Commissioners Mike Daly Dennis Luke Tom DeWolf Advisory Board John Ahrens Doug Hancock Bill Kuhn Rick Martinson Elizabeth Stokes Genevieve Waldon Registered Agent Michael Maier 1300 NW Wall Bend, Oregon 97701 Exhibit Page _ of DE:SCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT TABLE OF CONTENTS YEAR ENDED JUNE 30, 2005 Page DISTRICT OFFICIALS INDEPENDENT AUDITORS' REPORT ..1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets 9 Statement of Activities 10 Fund Financial Statements Balance Sheet - Governmental Fund 11 Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Fund 12 Reconciliation of the Statement of Revenues, Expenditures and Changes in Balance of Governmental Fund to the Statement of Activities 13 Schedule of Revenues and Expenditures - Actual and Budget (Budgetary Basis) - General Fund 14 Notes to Financial Statements 15 OTHER SUPPLEMENTARY INFORMATION Schedule of Property Tax Transactions 22 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS 23 Exhibit > Page __4- of INDEPENDENT AUDITORS' REPORT I John P. Harrigan, CPA Wesley B. Price III, CPA Candace S. Fronk. CPA Deschutes County Commissioners and Managing Board ' Deschutes County Extension and 4-H County Service District Deschutes County, Oregon We have audited the accompanying financial statements of the governmental activities and each major fund of Deschutes County Extension and 4-H County Service District, a component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Deschutes County Extension and 4-H County Service District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Deschutes County Extension and 4-H County 975 SW Colorado Service District's management. Our responsibility is to express opinions on these Sire 200 financial statements based on our audit. The prior year summarized comparative Bend, OR 97702 information has been derived from the District's 2004 financial statements that were Tel (541) 382-4791 Fax (541) 388-1124 audited by us; our report dated November 11, 2004, expressed an unqualified opinion. www.bendcpa.com email@bendcpail@bendcpa.c.com We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund as of June 30, 2005, and the respective changes in financial position thereof and the budgetary comparison schedules for the General Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. The accompanying management discussion and analysis starting on page 3 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Exhibit Page S of 3 ' Deschutes County Commissioners and Managing Board Deschutes County Extension and 4-H County Service District ' Page 2 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Deschutes County Extension and 4-H County Service Districts basic financial statements. The other supplemental information is presented for purposes of additional analysis and is not a required part of the financial statements. The supplemental information has been subjected to the auditing procedures applied in the ' audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. ' HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants ' By: A-/ 117,11:e C CZndAace S. Fronk - a p ner August 29, 2005 Exhibit A of ( Page 03 MANAGEMENT'S DISCUSSION AND ANALYSIS Exhibit ) Page _Q of DE:SCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 As management of Deschutes County Extension and 4-H County Service District, we offer readers of Deschutes County Extension and 4-H County Service District's financial statements this narrative overview and analysis of the financial activities of Deschutes County Extension and 4-H County Service District for the fiscal year ended June 30, 2005. Financial Highlights The assets of Deschutes County Extension and 4-H County Service District exceeded its liabilities at June 30, 2005, by $584,000. Of this amount, $111,000 is unrestricted. Total net assets increased by $10,000. ,As of June 30, 2005, Deschutes County Extension and 4-H County Service District's governmental fund reported an ending fund balance of $133,000, or 49% of total General Fund fiscal year 2004- 2005 expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Deschutes County Extension and 4-H County Service District's basic financial statements. These basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of Deschutes County Extension and 4-H County Service District's finances, in a manner similar to a private- sector business. The Statement of Net Assets presents information on all of Deschutes County Extension and 4-H County Service District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of Deschutes County Extension and 4-H County Service District is improving or deteriorating. The Statement of Activities presents information showing how Deschutes County Extension and 4-H County Service District's net assets changed during the fiscal year ended June 30, 2005. Changes in net assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash, or other financial assets, flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued vacation, that will result in cash flows in future fiscal periods. Each of these government-wide financial statements, Statement of Net Assets and Statement of Activities, show the functions of Deschutes County Extension and 4-H County Service District that are supported primarily by taxes and inter-governmental revenues (governmental activities). The governmental activity of Exhibit <b Page 1-7- of 1 -3- DE;SCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Deschutes County Extension and 4-H County Service District is providing agricultural education extension services to the inhabitants of Deschutes County. The government-wide financial statements can be found on pages 9-10 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Deschutes County Extension and 4-H County Service District, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Each of the funds of Deschutes County Extension and 4-H County Service District is classified as governmental funds. Governmental funds. Governmental funds are used to account for the same functions as govemmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. A reconciliation from the ' Governmental Funds Balance Sheet to the Government-wide Statement of Net Assets and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-wide Statement of Activities have been included in this report. Deschutes County Extension and 4-H County Service District reported activity in one governmental fund during the fiscal year ended June 30, 2005. Information is presented separately in the governmental fund Balance: Sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund ' Balances for the General Fund. Deschutes County Extension and 4-H County Service District adopts an annual budget for its funds. A ' budgetary comparison statement has been provided for this fund to demonstrate compliance with the annual budget. ' The Basic Governmental Fund Financial Statements can be found on pages 11-13 of this report. Notes to the Financial Statements ' The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on ' pages 15-21 of this report. -4- 1 Exhibit Page __~r of DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS ' YEAR ENDED JUNE 30, 2005 Government-wide Financial Analysis Net assets, at a specific point in time, serve as a useful indicator of an entity's financial position. In the case of Deschutes County Extension and 4-H County Service District, assets exceed liabilities by $584,000 at June 30, 2005. Nearly 81 % of Deschutes County Extension and 4-H County Service District's net assets represent its investment in capital assets (equipment) and building. Deschutes County Extension and 4-H County Service District uses these capital assets to provide services to citizens and these net assets are not available for future spending. The remaining 19%, $111,000, of Deschutes County Extension and 4-H County Service District's net assets ' may be used to meet the County's on-going obligations to citizens and creditors. As of June 30, 2005, Deschutes County Extension and 4-H County Service District reports positive balances in both categories of net assets (Invested in capital assets and Unrestricted) for the government as a whole and for the governmental activities. Deschutes County Extension and 4-H County Service District's net assets increased by $10,000 during the year ended June 30, 2005. Deschutes Countv Extension and 4-H County Service District's Comparative Net Assets Current assets Capital assets Total Assets Current liabilities Long-term liabilities Total Liabilities Net Assets Exhibit.D Page of 3 -5- Governmental Activities 2005 2004 $ 149,922 $ 121,021 473,040 484,296 622,962 605,317 8,422 5,787 30,730 25,577 39,152 31,364 $ 583,810 $ 573,953 DE:SCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Governmental Activities Governmental activities increased Deschutes County Extension and 4-H County Service District's net assets by about $10,000 during the fiscal year ended June 30, 2005. The District expended assets on non-recurring items related to the improvements of the grounds around its office building. Deschutes County Extension and 4-H County Service District's Comparative Changes in Net Assets Program revenues Charges for services Operating grants General revenues Property taxes Investment earnings Intergovernmental revenues Governmental Activities 2005 30,000 263,676 3,295 2,151 Total Revenues Expenses: General services Total Expenses 299,122 2004 $ 797 10,000 242,502 2,391 255,690 289,265 261,810 289,265 Change in net assets 9,857 Net Assets - Beginning of year 573,953 Net Assets - End of year $ 583,810 Financiial Analysis of the District's Funds 261,810 (6,120) 580,073 $ 573,953 Deschutes County Extension and 4-H County Service District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Deschutes County Extension and 4-H County Service District's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Deschutes County Extension and 4-H County Service District's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending as of the end of the fiscal year. -6- Exhibit Page ! O of '6 DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 As of June 30, 2005, $133,000, all unreserved, is the reported ending fund balance for Deschutes County Extension and 4-H County Service District's governmental funds, consisting solely of a general fund, an increase of $27,000 from June 30, 2004. The District received $16,000 more in property taxes than estimated. One measure of the General Fund's liquidity is the relationship of both the unreserved and the total fund balance to the fund's total expenditures. The fund balance as of June 30, 2005, for the General Fund is,49% of total General Fund fiscal year 2004-2005 expenditures. General Fund Budgetary Highlights There was a minor difference between the Deschutes County Extension and 4-H County Service District's General Fund budget as originally adopted and the final amended budget, due to capital outlay requirements. General Fund actual revenues exceeded estimated revenues by $37,545, due mainly to property taxes and additional payments from the state. Capital .Asset and Debt Administration Capital.Assets Deschutes County Extension and 4-H County Service District's investment in capital assets for its governmental activities as of June 30, 2005, is $473,000, net of accumulated depreciation. This investment in capital assets includes building and equipment. The 10% decrease in capital assets for the year ended June 30„ 2005, for governmental activities was due to the allocation of the costs of the District's assets over their useful lives via depreciation charges. Additional information on Deschutes County Extension and 4-H County Service District's capital assets is included in Note 3 on page 20 of this report. Long-Term Debt Deschutes County Extension and 4-H County Service District has no long-term debt. Key Economic Factors and Budget Information for the Future • The economy of Deschutes County has been robust, especially in residential and commercial construction. Deschutes County has experienced the highest growth rate of all Oregon counties over the past twelve years. • It is anticipated the cost of providing health benefits to District employees will increase 15% in the next fiscal year. Exhibit- Page. of 3! - ' DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT ' MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Requests for Information ' This financial report is designed to provide a general overview to those parties interested in Deschutes County Extension and 4-H County Service District's finances. Questions concerning any of the information ' provided in this report or requests for additional information should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Bend, Oregon, 97701. -8- Exhibit Page -a- of 3 ( BASIC FINANCIAL STATEMENTS Exhibit D Page jl~ of 3 DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT STATEMENT OF NET ASSETS JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) Primary Government Governmental Activities 2005 2004 Cash and investments Accounts receivable Property taxes receivable Equipment and building Accumulated depreciation TOTAL ASSETS Accounts payable Noncurrent liabilities Accrued compensated absences TOTAL LIABILITIES Invested in capital assets Unrestricted TOTAL NET ASSETS ASSETS $ 139,578 $ 110,118 51 10,293 10,903 507,729 507,729 (34,689) (24,433) 622,962 604,317 LIABILITIES 8,422 5,787 30,730 25,577 39,152 31,364 NET ASSETS 473,040 484,296 110,770 89,657 $ 583,810 $ 573,953 See notes to financial statements -9- Exhibit Z~ Page Of 51 DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT ' STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 ' (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Primary government ' Government activities General services Program Revenues Operating Grants Net (Expense) Revenue and Charges for and Changes in Net Assets Expenses Services Contributions 2005 2004 $ 289,265 $ $ 30,000 $ (259,265) $ (251,013) General Revenues: Property taxes 263,676 242,502 Investment earnings 3,295 2,391 Miscellaneous 2,151 Total general revenues 269,122 244,893 Change in net assets 9,857 (6,120) NET ASSETS - Beginning of year as originally stated 573,953 584,097 Prior period adjustment (4,024) NET ASSETS - Beginning of year as adjusted 573,953 580,073 NET ASSETS - End of year $ 583,810 $ 573,953 See notes to financial statements -10- Exhibit 1D Page _I S of 3 DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT BALANCE SHEET - GOVERNMENTAL FUND JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) 2005 2004 ASSETS Cash and investments $ 139,578 $ 110,118 Accounts receivable 51 Property taxes receivable 10,293 10,903 T01-AL ASSETS $ 149,922 $ 121,021 LIABILITIES Accounts payable $ 8,422 $ 5,787 Deferred revenue 8,234 8,735 TOTAL LIABILITIES 16,656 14,522 FUND BALANCE Undesignated 133,266 106,499 TOTAL LIABILITIES AND FUND BALANCE $ 149,922 $ 121,021 Fund Balance, above $ 133,266 $ 106,499 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the fund. 473,040 484,296 Some of the District's taxes will be collected after year-end, but are not currently available resources and, therefore, are not reported in the fund. 8,234 8,735 Long-term liabilities are not due and payable in the current period arid, therefore, are not reported in the fund. (30,730) (25,577) Net assets of governmental activities, page 9. $ 583,810 $ 573,953 See notes to financial statements Exhibit D Page -L-(v- of 31 DE:SCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Totals Revenues Property taxes Interest Charges for services Miscellaneous Intergovernmental revenue 'TOTAL REVENUES Expenditures Personnel services Materials and services Capital outlay TOTAL EXPENDITURES Net. change in fund balance FUND BALANCE - Beginning of year FUND BALANCE - End of year See notes to financial statements -12- 2005 2004 $ 264,177 $ 243,518 3,295 2,391 797 2,150 30,000 10,000 299,622 256,706 175,912 166,558 94,993 81,959 1,950 272,855 248,517 26,767 8,189 106,499 98,310 $ 133,266 $ 106,499 Exhibit 7) Page _L-Z of _3j_ DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES , YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2005) Amounts reported for governmental activities are different because: Net change in fund balance - governmental fund, page 12 Some expenses reported in the Statement of Activities (e.g. the increase in accrued compensated absences) do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation ($11,256) exceeded capital outlay ($0) in the current period. Property tax revenue is recognized under the modified accrual basis of accounting only to the extent it has been collected within 60 days of year-end. On the accrual basis Statement of Activities, such revenue is recognized regardless of when collected. Change in net assets of governmental activities, page 10 Exhibit Page / ~ of See notes to financial statements -13- 2005 2004 1 $ 26,767 $ 8,189 (5,153) (2,038) (11,256) (11,255) (501) (1,016) $ 9,857 $ (6,120) DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT SCHEDULE OF REVENUES AND EXPENDITURES - ACTUAL AND BUDGET (BUDGETARY BASIS) GENERAL FUND YEAR ENDED JUNE 30, 2005 Budgeted Amounts Original Final Revenues Property taxes Interest Intergovernmental Miscellaneous TOTAL REVENUES Expenditures Personnel services Materials and services Capital outlay Contingency TOTAL EXPENDITURES Excess of revenues over (under) expenditures Actual Variance with Final Budget Over (Under) $ 248,177 $ 248,177 $ 264,177 $ 16,000 1,300 1,300 3,295 1,995 10,000 10,000 30,000 20,000 2,600 2,600 2,150 (450) 262,077 262,077 299,622 37,545 176,191 176,191 175,912 (279) 115,010 115,010 94,993 (20,017) 1,600 2,100 1,950 (150) 22,659 22,159 (22,159) 315,460 315,460 272,855 (42,605) (53,383) (53,383) 26,767 80,150 ' FUND BALANCE - Beginning of year 101,883 101,883 106,499 4,616 FUND BALANCE - End of year $ 48,500 $ 48,500 $ 133,266 $ 84,766 ' See notes to financial statements -14- Exhibit 2 Page - /C?_ of DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 11 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District The Deschutes County Extension and 4-H County Service District was established under ORS 451.410 to 451.600 on February 2, 1982, for the purpose of providing agricultural education extension services to the citizens of Deschutes County. The Deschutes County Board of Commissioners is the governing body of the District. Government wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the activities of the government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support. The District has no proprietary or fiduciary funds. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscall period. Revenues received after this period are considered unavailable. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences are recorded only when payment is due. -15- Exhibit- Page _ of DE:SCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT ' NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 ' NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued ' Property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District. The District reports the following governmental fund: General Fund - The General Fund is utilized to account for the transactions of the District. Property taxes are the principal sources of revenue. Expenditures are for the operation and administration of the District. ' Budget Policy The District prepares a budget for all funds which meets the requirements of state law. The budget is prepared on the modified accrual basis of accounting. The resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. Total personnel services, ' materials and services, capital outlay and other expenditures are the levels of control established by resolution. The detailed budget document provides for specific detailed information for the above- mentioned expenditure categories. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriations resolution. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Appropriations lapse as of year-end. Reporting Entity The District has adopted the position of the American Institute of Certified Public Accountants Governmental Accounting Standards Board regarding the definition of the "reporting entity." The basic criterion for determining the organizations, activities and functions of related agencies that should be included in a governmental unit's component unit financial statements is the exercise of oversight responsibility over such agencies by the governmental unit's elected officials. The manifestations of such oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. There: were no specific agencies which required consideration under the criterion in the current fiscal year for inclusion in the District's reporting entity. Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes County, since the District's governing board is comprised of the Deschutes County Commissioners. -16- Exhibit - Page :P- 1 of _ DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 'I - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Comparative Totals The financial statements include certain prior-year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30, 2004, from which the summarized information was derived. Cash and Investments The District maintains its cash and investments in a central pool of cash and investments with Deschutes County. This pool includes amounts in demand deposits and investments in the Oregon State Treasurer's Local Government Investment Pool (LGIP). The investment policy of the County is to invest in LGIP and interest bearing demand deposits with local banks and to transfer resources to the general checking account as the need arises. This policy is in accordance with ORS 294.035 which specifies the types of investments authorized for municipal corporations. Deschutes County allocates earnings on investments to each of the District's funds based on daily cash balances. The investments are stated at cost which approximates fair value. Capital Assets Capital assets, which include equipment and a building, are reported in the government-wide financial statements. In the governmental fund statements, capital assets are charged to expenditures as purchased. Capital assets are recorded at historical cost. Donated assets are recorded at estimated fair market value as of the date of the donation. Capital assets are defined by the District as assets with an initial cost of $5,000 or more and an estimated useful life greater than two years. Additions or improvements and other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset, are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Major outlays for capital assets and improvements are capitalized as projects are constructed. For budgetary purposes, assets with an individual cost of $1,500 or more and a life of two years or more are categorized as capital outlay. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Assets and is calculated on the straight-line basis over the asset's estimated life. Compensated Absences Accumulated vested vacation pay is accrued as it is earned. Accrued vacation payable is recorded at actual accrued hours times current pay rates, plus related fringe benefits. For governmental funds, the -17- Exhibit Page o~~ of DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Compensated Absences - Continued amount is maintained separately and represents a reconciling item between the fund-level and government-wide presentations. Sick pay, which does not vest, is recognized when leave is taken. Property Taxes/Deferred Revenue Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied July 1 and property owners have the option of paying the full amount November 15 or February 15 less a discount, or paying in three installments, November 15, February 15 and May 15. Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May 15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2005 fiscal year tax levy was $271,034. Management has determined that due to the remedies available to collect property taxes, no allowance for uncollectible accounts is necessary. ' Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary collecting agency. Uncollected property taxes are shown on the governmental balance sheet as receivables. Collections within 60 days subsequent to year-end have been accrued and the remaining taxes receivable are recorded as deferred revenue on the modified accrual basis of accounting since they are not deemed available to finance operations of the current period. Undesignated Fund Balance Undesignated fund balance indicates the portion of fund equity which is available for budgeting in future periods. Estimates The preparation of financial statements in conformity with generally accepted accounting principals in the United States of America requires management to make estimates and assumptions that effect certain reported amounts and disclosures. -18- Exhibit Page c-L-3~_ of DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 2 CASH AND INVESTMENTS The District participates in the Oregon State Treasurer's Local Government Investment Pool (LGIP), a non- SEC regulated, open-ended, no-load diversified portfolio created under ORS 294.805 to 294.895. The LGIP is administered by the State Treasurer and the Oregon Investment Council with the advice of the Oregon Short-Term Fund Board. The Oregon State Treasurer's Office has calculated the fair value of the underlying investments of the LGIP and the District's share of market value is reflected below. The portfolio has at least 50% of its investments maturing within 93 days and up to 25% maturing in one to three years. As of June 30, 2005, the District has the following investment: Investment Maturities State of Oregon Treasurer's Local Government Investment Pool 6 months average Interest Rate Risk Fair Value $ 139,578 The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond the limits provided by State statute. Credit Risk State law limits investments to obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers' acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds and obligations of states and municipalities. The District has no investment policy that would further limit its investment choices. The District's investment in the State of Oregon Treasurer's Local Government Investment Pool is not rated. The Pool is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure on the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investment in the Deschutes County Investment Pool is not deemed to be a security, which is a transferable financial instrument that evidence ownership and is, therefore, not subjected to custodial credit risk. -19- 11 n Exhibit Page. a q of ~jl DE:SCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 3 - CAPITAL ASSETS Composition of capital assets by major classes for the government-wide Statement of Net Assets is as follows: Balance July 1, 2004 Equipment Building $ 10,482 497,247 Total Less accumulated depreciation Equipment Building 507,729 Additions (8,516) (1,311) (14,917) (9,945) Deletions Balance June 30, 2005 $ 10,482 497,247 507,729 (9,827) (24,862) $ 484,296 $ (11,256) $ - $ 473,040 Depreciation expense was charged to the functions/programs as follows: General services $ 11,256 The District follows the County's capitalization threshold which is set at $5,000 for individual items that have a life greater than two years. NOTE 4 - PENSION PLAN Plan Description The District contributes to the Public Employees Retirement System (PERS), an agent multiple-employer defined benefit pension plan administered by the State of Oregon. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The State of Oregon assigns the authority to establish and amend benefit provisions to the PERS Board of Trustees. PERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to PERS, P.O. Box 23700, Tigard, Oregon, 97281-3700 or telephone at 888-320-7377. Fund'ing Policy Plan members are required to contribute 6.0% of their annual covered salary and the District is required to contribute at an actuarially determined rate which is 5.35% of annual covered payroll. The contribution -20- Exhibit `7+ Page A,-5_ ofl _ DE:SCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 4 - PENSION PLAN - CONTINUED Funding Policy- Continued requirements of plan members and the District are established and may be amended by the PERS Board of Trustees. The District's contributions to PERS for the years ending June 30, 2005, 2004 and 2003 were $12,809, $13,490 and $17,822, respectively, equal to the required contributions for each year. The District pays both the employees' and the employer's cost. All employees are required by law to submit the contributions adopted by PERS and the employees' contributions are calculated in conformance with standards of GASB Statement No. 27. There is no net pension obligation. The contributions actually made are equal to the annual pension cost. See the primary government's financial statements for trending analysis. NOTE 5 - RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the District participates in Deschutes County's self insurance program. There have been no settlements in excess of insurance coverage and reserves for the year ended June 30, 2005. Exhibit ^D_ Page of 3 -21- OTHER SUPPLEMENTARY INFORMATION Exhibit 'D Page.-a-1 of DESCHUTES COUNTY EXTENSION AND 4-H COUNTY SERVICE DISTRICT SCHEDULE OF PROPERTY TAX TRANSACTIONS YEAR ENDED JUNE 30, 2005 Beginning Turnover Taxes Balance and Interest From County Receivables Tax Year 2004-05 Levy Adjustments (Discounts) Treasurer June 30, 2005 2004-2005 $ 271,034 $ (1,161) $ (6,352) $ 256,799 $ 6,721 2003-2004 6,996 (382) 240 4,852 2,002 2002-2003 2,449 (22) 171 1,497 1,101 2001-2002 1,000 (51) 118 756 312 2000-2001 346 (3) 72 332 83 1999-2000 56 (1) 9 33 31 1998-1999 17 2 6 13 1997-1998 6 1 5 1996-1997 5 5 Prior 24 5 9 20 Totals $ 281,933 , $ (1,620) $ (5,735) 264,285 $ 10,293 Adjustments for Accruals July 'l, 2004 June 30, 2005 Modified accrual basis tax revenue (2,167) 2,059 $ 264,177 - Exhibit -22 Page -of AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Exhibit_ - D, - PageQ.1- of 'b AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Internal Control We have audited the basic financial statements of the Deschutes County Extension and 4-H County Service District (the District), as of and for the year ended June 30, 2005, and have issued our report thereon dated August 29, 2005. In planning and performing our audit, we considered the District's internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control over financial reporting that we consider to be material weaknesses. Accounting Records We found the condition of the accounting records adequate for audit purposes. Collateral Cash and investments are pooled with Deschutes County and were adequately secured during the year. Indelitedness The District's short-term and long-term debt was found to be within legal limitations on the amount of debt which may be incurred, liquidation of debts were within the prescribed period of time and indebtedness was in compliance with provisions of bond indentures and other agreements, including restrictions on the use of monies available to retire indebtedness. Budgeting We reviewed the District's procedures for preparation, adoption and execution of its budget for the year ' ended June 30, 2005, and the procedures for preparation and adoption of their budget for the year beginning July 1, 2005. All procedures were found to be in compliance with statutory requirements. ' Insurance Coverage and Fidelity Bonds Insurance coverage and fidelity bonds were reviewed and found to be in compliance with statutory requirements. Programs Funded From Outside Sources Requirements ' The District had no programs which required review or comment. -23- Exhibit -1) Page 0 of 3 ( ' AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS ' Public Contracts and Purchasing Procedures for public contracts and purchasing were reviewed and found to be in compliance with statutory requirements. Investments Investments were reviewed and found to be in compliance with statutory requirements. Financial Reporting Requirements The District was not required to file financial reports with governmental agencies. ' Highway Funds ' The District does not receive any highway funds. ' This report is intended solely for the information and use of management, the board of directors and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these specified parties. HAR:RIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants By. f,andace S. Fronk - a artner August 29, 2005 -24- Exhibit D Page _b_ of I BLACK BUTTE RANCH COUNTY SERVICE DISTRICT ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2005 Exhibit c Page Z of,3L- BLACK BUTTE RANCH COUNTY SERVICE DISTRICT DISTRICT OFFICIALS JUNE 30, 2005 GOVERNING BODY Deschutes County Commissioners Mike Daly Dennis Luke Tom DeWolf Managing Board Bill Carson - Chair Tom Mayberry -Vice Chair Dann Boeschen Carl Burnham, Jr. Jerry Christopherson Monroe Weinberg Warren Zielinski Registered Agent and Office Gil Zaccaro 13885 Bishops Cap Black Butte Ranch, Oregon Exhibit 6 Page 3 of BLACK BUTTE RANCH COUNTY SERVICE DISTRICT TABLE OF CONTENTS YEAR ENDED JUNE 30, 2005 Page DISTRICT OFFICIALS INDEPENDENTAUDITORS' REPORT .............................................................................................................1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets 8 Statement of Activities 9 Fund Financial Statements Balance Sheet - Governmental Fund . 10 . Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Fund 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Balance of Governmental Funds to the Statement of Activities 12 Statement of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Budgetary Basis) - General Fund 13 Notes to Financial Statements 14 OTHER SUPPLEMENTARY INFORMATION Schedule of Property Tax Transactions .......................................................................................................21 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS ....................................22 Exhibit E Page --4-of INDEPENDENT AUDITORS' REPORT John P. Harrigan. CPA Wesley B. Price Ill, CPA Candace S. Fronk, CPA Deschutes County Commissioners and Managing Board Black Butte Ranch County Service District Deschutes County, Oregon We have audited the accompanying financial statements of the governmental activities and each major fund of Black Butte Ranch County Service District, a component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Black Butte Ranch County Service District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Black Butte Ranch County Service District's management. Our 975 SW Colorado responsibility is to express opinions on these financial statements based on our audit. Suite 200 Bend. OR 97702 The prior year summarized comparative information has been derived from the District's Tel (541) 382-4791 2004 financial statements that were audited by us. In our report dated October 20, 2004, Fax (541) 388-1 124 we expressed an unqualified opinion. www.bendcpa.com email@bendcpa.com We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Black Butte Ranch County Service District, as of June 30, 2005, and the respective changes in financial position for the year then ended in conformity with generally accepted accounting principles in the United States of America. The accompanying management discussion and analysis starting on page 3 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Black Butte Ranch County Service District's basic financial statements. The supplemental information is presented for purposes of Exhibit jr~- Page 5 of 3 ' Deschutes County Commissioners and Managing Board Black Butte Ranch County Service District ' Page 2 ' additional analysis and is not a required part of the financial statements. The other supplementary information has been subjected to the auditing procedures applied in the ' audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. ' HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants By: ?zVk/ Candace S. Fronk - a partner August 9, 2005 Exhibit- E - Page of 3 / MANAGEMENT'S DISCUSSION AND ANALYSIS Exhibit r- Page _ 7 of BLACK BUTTE RANCH COUNTY SERVICE DISTRICT ' MANAGEMENT'S DISCUSSION AND ANALYSIS ' YEAR ENDED JUNE 30, 2005 As management of Black Butte Ranch County Service District, we offer readers of Black Butte Ranch County Service District's financial statements this narrative overview and analysis of the financial activities of Black Butte Ranch County Service District, for the fiscal year ended June 30, 2005. ' Financial Highlights • The assets of Black Butte Ranch County Service District exceeded its liabilities at June 30, 2005, by $258,378. Of this amount, $202,791 is unrestricted. ' • Total net assets decreased by $35,072. • As of June 30, 2005, Black Butte Ranch County Service District's General Fund reported ending fund , balance of $215,989, all undesignated, which is 41.6% of total General Fund fiscal year 2004-2005 expenditures. , Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Black Butte Ranch County Service ' , District s basic financial statements. These basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements ' . This report also contains other supplementary information in addition to the basic financial statements themselves. G ' overnnnent-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of Black ' Butte Ranch County Service District's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of Black Butte Ranch County Service District's , assets and liabilities, with the difference between the two reported as net assets. Over time increases or , decreases in net assets may serve as a useful indicator of whether the financial position of Black Butte Ranch County Service District is improving or deteriorating. , The Statement of Activities presents information showing how Black Butte Ranch County Service District's net assets changed during the fiscal year ended June 30, 2005. Changes in net assets are reported when th e underlying event giving rise to the change occurs, regardless of the timing of the related cash, or other financial assets flows Thus rev d , . , enues an expenses are reported in this statement for some items, for example, property taxes and accrued vacation, that will result in cash flows in future fiscal periods . ' Each of these government-wide financial statements, Statement of Net Assets a nd Statement of Activities , show the functions of Black Butte Ranch County Service District that are supported primarily by taxes and inter-governmental revenues (governmental activities). The governmental activity of Black Butte Ranch County Service District is public safety. , The government-wide financial statements can be found on pages 8-9 of this report. , -3- Exhibit i ' Page of 31 I BLACK BUTTE RANCH COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 A comparison of the summarized government-wide statements to the prior year (as restated) is as follows: Year ended Year ended STATEMENT OF NET ASSETS June 30, 2005 June 30, 2004 Change Current and other assets $ 230,895 $ 277,162 $ (46,267) Capital assets, net 55,587 46,776 8,811 Total Assets 286,482 323,938 (37,456) Current liabilities 529 6,648 (6,119) Long-term liabilities 27,575 23,840 3,735 Total Liabilities 28,104 30,488 (2,384) Net asserts Invested in capital assets Unrestricted Total Net Assets ' STATEMENT OF ACTIVITIES Program revenues ' Char(jes for services Operating grants and contributions General revenues Property taxes " Investment earnings ' Miscellaneous Total Revenues Expenses Public; safety ' Change in net assets ' Net Asserts - Beginning of year Net Assets - End of year 55,587 46,776 8,811 202,791 246,674 (43,883) $ 258,378 $ 293,450 $ (35,072) Year ended Year ended June 30, 2005 June 30, 2004 Change $ 13,200 $ 13,200 $ 1,190 (1,190) 448,442 433,477 14,965 5,696 4,280 1,416 10,428 8,219 2,209 477,766 460,366 17,400 512,838 502,359 10,479 (35,072) (41,993) 6,921 293,450 335,443 (41,993) $ 258,378 $ 293,450 $ (35,072) -4- Exhibit F Page__? _ of 43/ BLACK BUTTE RANCH COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 -5- Fund Financial Statements A fund its a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Black Butte Ranch County Service District, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Black Butte Ranch County Service District fund is classified as a governmental fund. Governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because: the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. A reconciliation from the Governmental Fund Balance Sheet to the Government-wide Statement of Net Assets and a reconciliation from the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-wide Statement of Activities have been included in this report. Black Butte Ranch County Service District reported activity in one governmental fund during the fiscal year ended June 30, 2005. Information is presented separately in the governmental fund Balance Sheet and in the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balance for the General Fund. Black Butte Ranch County Service District adopts an annual budget for its fund. A budgetary comparison statement has been provided for this fund to demonstrate compliance with the annual budget. The Basic Governmental Fund Financial Statements can be found on pages 10-12 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 14-20 of this report. Government wide Financial Analysis Net asserts, at a specific point in time, serve as a useful indicator of an entity's financial position. In the case of Black Butte Ranch County Service District, assets exceed liabilities by $258,378 at June 30, 2005. Nearly 22% of Black Butte Ranch County Service District's net assets represent its investment in capital assets (police vehicles). Black Butte Ranch County Service District uses these capital assets to provide services to citizens and these net assets are not available for future spending. Exhibit 9' Page.-/ 6 of BLACK BUTTE RANCH COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 The remaining (78%) $202,791 of Black Butte Ranch County Service District's net assets may be used to meet the District's on-going obligations to citizens and creditors. Black Butte Ranch County Service District's net assets decreased by $35,072 during the year ended June 30, 2005. This was primarily due to budgeted increases in labor costs and employee benefits, vehicle expenses and other supplies. Governmental Activities Governmental activities used $35,072 of Black Butte Ranch County Service District's net assets during the fiscal year ended June 30, 2005, 17% of Black Butte Ranch County Service District, available net assets. Financial Analysis of the District's Fund Black Butte Ranch County Service District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental fund. The focus of Black Butte Ranch County Service District's governmental fund is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Black Butte Ranch County Service District's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending as of the end of the fiscal year. As of June 30, 2005, $215,989 is the reported ending fund balance for Black Butte Ranch County Service District's, only fund, the General Fund, which is a decrease of $38,600 from June 30, 2004. This decrease is primarily due to budgeted increases in labor costs and employee benefits, vehicle expenses and other supplies. One measure of liquidity is the relationship of fund balance to the Fund's total expenditures. The fund balance as of June 30, 2005, for the General Fund is 41.6% of total General Fund fiscal year 2004- 2005 expenditures. General Fund Budgetary Highlights There were no differences between the Black Butte Ranch County Service District's General Fund budget as originally adopted and the final amended budget. General Fund actual revenues exceeded estimated revenues by $14,364. Actual property taxes were $2,990 greater than estimated. The District received $11,678 in miscellaneous revenues, which exceeded the estimated amount by $9,678. This consisted primarily of revenue from the sale of retired vehicles. Capital ,Asset and Debt Administration Black Butte Ranch County Service District's investment in capital assets for its governmental activities as of June 30, 2005, is $55,587, net of accumulated depreciation. Investment in capital assets is composed of vehicles. The District expended $32,179 for capital assets during the year and recorded $22,118 in -6- Exhibit E Page of "3 I BLACK BUTTE RANCH COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 depreciation. These additions resulted in a net increase of $8,811 in the amount reported as investment in capital assets at June 30, 2005, after the disposition of two surplus vehicles. Additional information on Black Butte Ranch County Service District's capital assets is included in Note 4 on page 19 of this report. Key Economic Factors and Budget Information for the Future Property tax revenue is expected to increase by approximately three percent for the fiscal year ending June 30, 2006. Other revenue is expected to remain stable. Expenses increased significantly in the next fiscal year to reflect changes in labor and benefit costs as a result of labor negotiations and settlement of a five-year labor contract. To help mitigate the increase in this first year, the purchase of a new police vehicle has been deferred by one year. Requests for Information This financial report is designed to provide a general overview to those parties interested in Black Butte Ranch County Service District's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Black Butte Ranch County Service District, 13885 Bishops Cap, Black Butte Ranch, Oregon, 97759. Exhibit -7- Page /Z of 3/ BASIC FINANCIAL STATEMENTS Exhibit 16, Page _S of '3j_ BLACK BUTTE RANCH COUNTY SERVICE DISTRICT STATEMENT OF NET ASSETS JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) ASSETS Cash and investments Property taxes receivable Vehicles Accumulated depreciation TOTAL ASSETS LIABILITIES Accounts payable Health insurance payable Noncurrent liabilities Accrued compensated absences TOTAL LIABILITIES NET ASSETS Invested in capital assets Unrestricted TOTAL NET ASSETS Primary Government Governmental Activities 2005 2004 $ 212,924 17,971 107,930 (52,343) 286,482 529 27,575 28,104 $ 257,253 19,909 125,751 (78,975) 323,938 1,603 5,045 23,840 30,488 55,587 202,791 $ 258,378 See notes to financial statements -8- 46,776 246,674 $ 293,450 Exhibit Page 1 of 51 BLACK BUTTE RANCH COUNTY SERVICE DISTRICT STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Primary, government Government activities Public safety Program Revenues Operating Grants Net (Expense) Revenue and Charges for and Changes in Net Assets Expenses Services Contributions 2005 2004 $ 512,838 $ 13,200 $ $ (499,638) $ (487,969) General Revenues: Property taxes 448,442 433,477 Investment earnings 5,696 4,280 Miscellaneous 2,428 8,219 Gain on sale of assets 8,000 Total general revenues 464,566 445,976 Change in net assets (35,072) (41,993) NET ASSETS - Beginning of year 293,450 335,443 NET ASSETS - End of year $ 258,378 $ 293,450 See notes to financial statements -9- Exhibit E Page 5 of 31 BLACK BUTTE RANCH COUNTY SERVICE DISTRICT BALANCE SHEET - GOVERNMENTAL FUND JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) 2005 ASSETS Cash and investments Property taxes receivable TOTAL ASSETS LIABILITIES Accounts payable Health insurance payable Deferred revenue TOTAL LIABILITIES FUND BALANCE Undesignated TOTAL LIABILITIES AND FUND BALANCE Fund Balance, above Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the fund. Some of the District's taxes will be collected after year-end, but are not current available resources and, therefore, are not reported in the fund. 2004 $ 212,924 $ 257,253 17,971 19,909 $ 230,895 $ 277,162 $ 529 $ 1,603 5,045 14,377 15,925 14,906 22,573 215,989 254,589 $ 230,895 $ 277,162 $ 215,989 $ 254,589 55,587 46,776 14,377 15,925 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the fund. (27,575) (23,840) Net assets of governmental activities, page 8 $ 258,378 $ 293,450 See notes to financial statements -10- Exhibit 1e5 Page 1(4,of_ BLACK BUTTE RANCH COUNTY SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) 2005 2004 Revenues Property taxes Charges for services Interest Charitable contributions Miscellaneous 'TOTAL REVENUES Expenditures Personal services Materials and services Capital outlay 'TOTAL EXPENDITURES Net change in fund balance FUND BALANCE - Beginning of year FUND BALANCE - End of year See notes to financial statements -11- $ 449,990 $ 433,853 13,200 13,200 5,696 4,280 1,190 11,678 8,218 480,564 460,741 395,921 386,033 91,265 91,296 31,978 22,751 519,164 500,080 (38,600) (39,339) 254,589 293,928 $ 215,989 $ 254,589 Exhibit E Page -L;Z_ of 1 BLACK BUTTE RANCH COUNTY SERVICE DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 ' (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balance - total governmental funds, page 11 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay (32,179) exceeded depreciation (22,118) in the current period. Governmental funds report proceeds from the sales of capital assets as miscellaneous revenues. However, in the Statement of Activities, these proceeds are reduced by the remaining book value of the assets sold. This is the amount by which sales proceeds exceeded gain on sale of assets. Property tax revenue is recognized under the modified accrual basis of accounting only to the extent it has been collected within sixtydays of year-end. On the accrral basis Statement of Activities, such revenue is recognized regardless of when collected. Changes in net assets of governmental activities, page 9 See notes to financial statements -12- Exhibit 0 Page of 51 2005 2004 $ (38,600) $ (39,339) (3,735) (2,153) 10,061 (124) (1,250) (1,548) (377) $ (35,072) $ (41,993) BLACK BUTTE RANCH COUNTY SERVICE DISTRICT ' STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (BUDGETARY BASIS) ' GENERAL FUND YEAR ENDED JUNE 30, 2005 REVENUES Property taxes Charges for services ' Interest Miscellaneous income TOTAL REVENUES EXPENDITURES Personal services Materials and services Capital outlay Contingency TOTAL EXPENDITURES Excess of revenues over (under) expenditures Variance with Budgeted Amounts Final Budget Original Final Actual Over (Under) $ 447,000 $ 447,000 $ 449,990 $ 2,990 13,200 13,200 13,200 4,000 4,000 5,696 1,696 2,000 2,000 11,678 9,678 466,200 466,200 480,564 14,364 424,755 424,755 395,921 (28,834) 100,477 100,477 91,265 (9,212) 32,000 32,000 31,978 (22) 25,000 25,000 (25,000) 582,232 582,232 519,164 (63,068) (116,032) (116,032) (38,600) 77,432 FUND BALANCE - Beginning of year 256,032 256,032 254,589 (1,443) FUND BALANCE - End of year $ 140,000 $ 140,000 $ 215,989 $ 75,989 See notes to financial statements -13- Exhibit -6 Page of 31 BLACK BUTTE RANCH COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District The Black Butte Ranch County Service District was formed as a political subdivision of Deschutes County, Oregon, on October 18, 1989, under the authority of Oregon Revised Statutes Chapter 451 to provide services to the unincorporated community of Black Butte Ranch, Oregon. Services provided by the District are currently limited to law enforcement. Government-wide and Fund Financial Statements The <iovernment-wide financial statements (i.e., the Statement of Net Assets and the Statement of Changes in Net Assets) report information on all of the activities of the government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District has no proprietary or fiduciary funds. The :statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus, and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Property tax revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenues received after this period are considered unavailable. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences are recorded only when payment is due. Exhibit -14- Page 2 0 _ of 31 BLACK BUTTE RANCH COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued Property taxes associated with the current fiscal period are considered susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District. The District reports only one governmental fund - the General Fund. It accounts for all financial resources of the government. Budget Policy Budgets are adopted on a basis consistent with generally accepted accounting principles of the United Staters of America. The resolution authorizing appropriations sets the level by which expenditures cannot legally exceed appropriations. For the General Fund, total personal services, materials and services, and capital outlay are the levels of control established by resolution. The detailed budget document contains more specific detailed information for the above-mentioned expenditure categories. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriations ordinance. The original budget requires hearings before the public, publications in newspapers and approval by the governing body. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval by the governing body. Appropriations lapse as of year-end. Reporting Entity The District has adopted the position of the American Institute of Certified Public Accountants Governmental Accounting Standards Board regarding the definition of the "reporting entity." The basic criterion for determining the organizations, activities and functions of related agencies that should be included in a governmental unit's component unit financial statements is the exercise of oversight responsibility over such agencies by the governmental unit's elected officials. The manifestations of such an oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. There were no specific agencies which required consideration under the criterion in the current fiscal year for inclusion in the District's reporting entity. Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes County, since the District's governing board is comprised of the Deschutes County Commissioners. Exhibit Page _ of 3- BLACK BUTTE RANCH COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS ' JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Cash and Investments Cash includes amounts in demand deposits, cash on hand, cash with the fiscal agent and amounts in investment pools that have the general characteristics of demand deposit accounts, such as the State of Oregon Treasurer's Local Governmental Investment Pool. Capital Assets Capital assets, consisting of police vehicles are reported in the government-wide financial statements. In the governmental fund statements, capital assets are charged to expenditures as purchased. Capital assets are recorded at historical cost. Donated assets are recorded at estimated fair market value as of the date of the donation. Capital assets are defined by the District as assets with an initial cost of $5,000 or more and an estimated useful life greater than two years. Additions or improvements and other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Major outlays for capital assets and improvements are capitalized as projects are constructed. For budgetary purposes, assets with an individual cost of $2,500 or more and a life of two years or more are categorized as capital outlay. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accurnulated depreciation reflected in the Statement of Net Assets and is calculated on the straight-line basis over estimated useful lives of five years. Compensated Absences Accumulated vested vacation pay is accrued as it is earned. Accrued vacation payable is recorded at actual accrued hours times current pay rates plus related fringe benefits. For governmental funds, the amount is maintained separately and represents a reconciling item between the fund-level and government-wide presentations. Sick pay, which does not vest, is recognized when leave is taken. Property Taxes/Deferred Revenue Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied July 1 and property owners have the option of paying the full amount November 15 or February 15 less a discount, or paying in three installments, November 15, February 15 and May 15. Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May 15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2005 fiscal year tax levy was $460,907. -16- Exhibit Page 2z . of BLACK BUTTE RANCH COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Property Taxes/Deferred Revenue - Continued Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary collecting agency. Uncollected property taxes are shown in the balance sheet as receivables. Collections within 60 days subsequent to year-end have been accrued and the remaining taxes receivable are recorded as deferred revenue on the Governmental Funds Balance Sheet, since they are not deemed available to finance operations of the current period. Undesignated Fund Balance Undesignated fund balance indicates the portion of fund equity which is available for budgeting in future periods. Comparative Totals/Reclassifications The financial statements include summarized prior year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30, 2004, from which such summarized information was derived. Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that effect certain reported amounts and disclosures. NOTE 2 - ORGANIZATION AND FUND BALANCE The District is governed by the three Deschutes County commissioners and managed by a seven-member board. General Fund - The General Fund is utilized to account for the transactions of the District. Property taxes and law enforcement contracts are its principle sources of revenue. Expenditures are for the operation and administration of the District. -17- Exhibit 15 Page 23 of BLACK BUTTE RANCH COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 3 - CASH AND INVESTMENTS Cash and investments consisted of the following at June 30, 2005: Depository accounts $ 36,612 Investments 176,312 $ 212,924 Deposits Depository Account Bank Balance Insured $ 36,612 Total Deposits $ 36,612 Custodial Credit Risk - Deposits. Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District does not have a deposit policy for custodial credit risk beyond the limits provided by state statute. As of June 30, 2005, none of the District's deposit balance of $36,612 was exposed to custodial credit risk. Investments The District participates in the Oregon State Treasurer's Local Government Investment Pool (LGIP), a non- SEC regulated, open-ended, no-load diversified portfolio created under ORS 294.805 to 294.895. The LGIP is administered by the State Treasurer and the Oregon Investment Council with the advice of the Oregon Short-Term Fund Board. The Oregon State Treasurer's Office has calculated the fair value of the underlying investments of the LGIP and the District's share of market value is reflected below. The portfolio has at least 50% of its investments maturing within 93 days and up to 25% maturing in one to three years. Investments State Investment Pool Fair Value $ 176,312 Interest Rate Risk. The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond the limits provided by state statutes. Credit Risk. State law limits investments to obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers' acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds, and obligations of states and municipalities. -18- Exhibit E Page 2:q of 3 BLACK BUTTE RANCH COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 2111 - CASH AND INVESTMENTS - CONTINUED The District has no investment policy that would further limit its investment choices. The District's investment in the LGIP is not rated. Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investment in the LGIP is not deemed to be a security, which is a transferable financial instrument that evidences ownership, and is, therefore, not subject to custodial credit risk. NOTE 4 - CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2005, is as follows: Balance July 1, 2004 Police vehicles Less accumulated depreciation NOTE 5 - PENSION PLAN Plan Description Additions Balance Deletions June 30, 2005 $ 125,751 $ 32,179 $ 50,000 $ 107,930 78,975 22,118 48,750 52,343 $ 46,776 $ 10,061 1,250 $ 55,587 The District contributes to the Public Employee Retirement System (PERS), an agent multiple-employer defined benefit pension plan administered by the State of Oregon. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The State; of Oregon assigns the authority to establish and amend benefit provisions to the PERS Board of Trustees. PERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to PERS, P.O. Box 23700, Tigard, Oregon, 97281-3700 or by telephoning at 888-320-7377. -19- Exhibit Page 25_ of BLACK BUTTE RANCH COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS , JUNE 30, 2005 NOTE 5 - PENSION PLAN - CONTINUED Funcling Policy Plan members are required to contribute 6.0% of their annual covered salary, and the District is required to contribute at an actuarially determined rate. The current rate is 8.07% of annual covered payroll. The contribution requirements of plan members and the District are established and may be amended by the PERS Board of Trustees. The District's contributions to PERS for the years ending June 30, 2005, 2004, and 2003 were $23,967, $22,875 and $15,393, respectively, equal to the required contributions for each year. The District pays both the employee and the employer's cost. All employees are required by law to submit the contributions adopted by PERS and the employees' contributions are calculated in conformance with standards of GASB Statement No. 27. There is no net pension obligation. The contributions actually made are equal to the annual pension cost. The required contribution was determined as part of the December 31, 2003, actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) an 8.00% investment rate of return (net of administrative expenses), (b) projected salary increases of 4.25% per year and (c) 2.00% per year post-retirement cost-of-living increases. The underlying long-term assumed rate of inflation is 3.50% per year. The actuarial values of PERS assets are valued on the Expected Value Method. The District's unfunded actuarial liability is being amortized as a level percentage of payroll over 30 years on an open basis. Actuarial Accrued Actuarial Liability Actuarial Value of (AAL) Valuation Assets Entry Age Date (a) (b) 12/31/1999 $ 451,407 $ 433,982 12/3112001 493,099 398,720 12/31/2003 422,783 357,677 Unfunded UAAL as a (Overfunded) Percentage AAL Funded Covered of Covered (UAAL) Ratio Payroll Payroll (b-a) (alb) (c) (b-a/c) $ (17,425) 104% $ 110,920 (16)% (94,379) 124% 134,863 (70)% (65,106) 118% 123,915 (53)% NOTE 6 - COMMITMENTS AND CONTINGENCIES The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the District carries commercial insurance. There: have been no settlements in excess of insurance coverage for the year ended June 30, 2005. Exhibit r -20- Page 2-6;, of 31 OTHER SUPPLEMENTARY INFORMATION Exhibit F Page z? 0-f-31 BLACK BUTTE RANCH COUNTY SERVICE DISTRICT SCHEDULE OF PROPERTY TAX TRANSACTIONS YEAR ENDED JUNE 30, 2005 Beginning Turnover Taxes Balance and Interest From County Receivable Tax: Year 2004-05 Levy Adjustments (Discounts) Treasurer June 30, 2005 2004-2005 $ 460,907 $ (1,975) $ (10,801) $ 436,700 $ 11,431 2003-2004 12,503 (682) 430 8,672 3,579 2002-2003 4,537 (41) 317 2,774 2,039 2001-2002 1,937 (101) 229 1,466 599 2000-2001 702 (7) 148 674 169 Prior 221 (3) 29 93 154 Totals $ 480,807 $ (2,809) $ (9,648) 450,379 $ 17,971 Adjustrnents for Accruals June 30, 2004 June 30, 2005 Modified accrual basis tax revenue (3,983) 3,594 $ 449,990 g h bit_~ -21- Page -QZ __f- AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Exhibit 6 Page R of AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Internal Control We have audited the basic financial statements of the Black Butte Ranch County Service District (the District), as of and for the year ended June 30, 2005, and have issued our report thereon dated August 9, 200115. In planning and performing our audit, we considered the District's internal control in order to determine our auditing procedures for the purpose of expressing our opinions on the basic financial statements and not to provide assurance on the internal control. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the District's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. We noted that the District does not have adequate segregation of accounting duties. Although this is generally considered to be a reportable condition, management must weigh the costs and benefits which would result from employing the personnel necessary to provide adequate segregation of duties. Due to the :size, complexity and available resources of the District, we understand that the costs may outweigh the benefits at this time. We do recommend that the Board continue its policy of requiring dual signatures on checks and having the entire Board regularly review the financial activity to mitigate this weakness to the greatest extent possible. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. However, we believe none of the conditions described above is a material weakness. Accounting Records We found the condition of the accounting records adequate for audit purposes. Collateral Cash and investments were adequately secured during the year. Indebtedness The District's short-term and long-term debt was found to be within legal limitations on the amount of debt which may be incurred, liquidation of debts were within the prescribed period of time, and indebtedness was in compliance with provisions of bond indentures and other agreements, including restrictions on the use of monies available to retire indebtedness. Budgeting We reviewed the District's procedures for preparation, adoption and execution of its budget for the year -22- Exhibit E Page 3 of 3 ! AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS ended June 30, 2005, and the procedures for preparation and adoption of their budget for the year beginning July 1, 2005. All procedures were found to be in compliance with statutory requirements. Insurance Coverage and Fidelity Bonds Insurance coverage and fidelity bonds were reviewed and found to be in compliance with statutory requirements. Programs Funded From Outside Sources Requirements The (District had no programs which required review or comment. Public Contracts and Purchasing Procedures for public contracts and purchasing were reviewed and found to be in compliance with statutory requirements. Investments Investments were reviewed and found to be in compliance with statutory requirements. Financial Reporting Requirements The District was not required to file financial reports with governmental agencies. Highway Funds The District does not receive any highway funds. This report is intended solely for the information and use of management, the board of directors and the ' Oregon Secretary of State and is not intended to be and should not be used by anyone other than these specified parties. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants By. . ' Candace S. Fronk - a artner August 9, 2005 -23- Exhibit "15 Page 3 of 31 SUNRIVER SERVICE DISTRICT ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2005 Exhibit . F- Page Z _ of , 3A SUNRIVER SERVICE DISTRICT DISTRICT OFFICIALS JUNE 30, 2005 GOVERNING BODY Deschutes County Commissioners Mike Daly Dennis Luke Tom DeWolf Managing Board Bill Starks - Chair Doug Seator -Vice Chair Jim Meyers - Treasurer Al Braemer - Director John Salzer - Director Bill Chapman - Budget Officer Sharon Smith - Legal Counsel Registered Agent and Office Michael Maier 1300 NW Wall Bend, Oregon 97701 Exhibit F: Page 3 of 3~{_ SUNRIVER SERVICE DISTRICT TABLE OF CONTENTS YEAR ENDED JUNE 30, 2005 Page DISTRICT OFFICIALS INDEPENDENT AUDITORS' REPORT MANAGEMENT'S DISCUSSION AND ANALYSIS ........................................................1 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets 8 Statement of Activities 9 Fund Financial Statements Governmental Funds - Balance Sheet 10 Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balances 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 12 Notes to Financial Statements 13 REQUIRED SUPPLEMENTARY INFORMATION Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) General Fund .....................................................................................................................................21 Reserve Fund .....................................................................................................................................22 OTHER SUPPLEMENTARY INFORMATION Schedule of Property Tax Transactions 23 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS 24 Exhibit 1' Page A of 3 ' John P. Harrigan, CPA Wesley B. Price III, CPA ' Candace S. Fronk, CPA 975 SW Colorado Suite 200 Bend. OR 97702 Tel (541) 382-4791 Fax (541) 388-1121 www.bendcpa.com email@bendcpa.com 11 11 11 11 11 INDEPENDENT AUDITORS' REPORT Deschutes County Commissioners and Managing Board Sunriver Service District Deschutes County, Oregon We have audited the accompanying financial statements of the governmental activities and each major fund of Sunriver Service District, a component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Sunriver Service District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Sunriver Service District's management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year summarized comparative information has been derived from the District's 2004 financial statements that were audited by us. In our report dated August 27, 2004, we expressed an unqualified opinion. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of Sunriver Service District as of June 30, 2005, and the respective changes in financial position for the year then ended in conformity with generally accepted accounting principles in the United States of America. The accompanying management discussion and analysis starting on page 3 and budgetary comparison information on pages 21 and 22 are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Exhibit 1= Page _,5 - of Deschutes County Commissioners and Managing Board Sunriver Service District Page 2 Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Sunriver Service District's basic financial statements. The other supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. The required supplementary information and other supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants By: Candace S. Fronk --a partner August 3, 2005 Exhibit Page ev of 3~}__ MANAGEMENT'S DISCUSSION AND ANALYSIS ' Exhibit F SUNRIVER SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 As management of Sunriver Service District, we offer readers of Sunriver Service District's financial statements this narrative overview and analysis of the financial activities of Sunriver Service District, for the fiscal year ended June 30, 2005. Financial Highlights • The assets of Sunriver Service District exceeded its liabilities at June 30, 2005, by $2,075,885. Unrestricted Net Assets were $1,088,592. Restricted Net Assets were $161,360 as of June 30, 2005. • As of June 30, 2005, Sunriver Service District's General Fund reported ending fund balance of $765,283, all undesignated, which is twenty-eight percent of total General Fund fiscal year 2004-2005 expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Sunriver Service District's basic financial statements. These basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of Sunriver Service District's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of Sunriver Service District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of Sunriver Service District is improving or deteriorating. The Statement of Activities presents information showing how Sunriver Service District's net assets changed during the fiscal year ended June 30, 2005. Changes in net assets are reported when the underlying event giving rise; to the change occurs, regardless of the timing of the related cash, or other financial assets, flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued vacation, that will result in cash flows in future fiscal periods. Each of these government-wide financial statements, Statement of Net Assets and Statement of Activities, show the functions of Sunriver Service District that are supported primarily by taxes and inter-governmental revenues (governmental activities). The governmental activity of Sunriver Service District is public safety. The government-wide financial statements can be found on pages 8-9 of this report. IJ 11 -3- I I Exhibit f' SIUNRIVER SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 A comparison of the summarized government-wide statements to the prior year is as follows: STATEMENT OF NET ASSETS June 30, 2005 June 30, 2004 Change Current and other assets $ 1,481,102 $ 1,237,298 $ 243,804 Capital assets, net 825,933 868,952 (43,019) TOTAL ASSETS 2,307,035 2,106,250 200,785 Current liabilities 231,147 219,221 11,926 Net Assets Invested in capital assets Restricted for major equipment replacement Unrestricted TOTAL NET ASSETS STATEMENT OF ACTIVITIES Program revenues ' Charges for services Capital grants and contributions General revenues Property taxes Investment earnings Miscellaneous TOTAL REVENUES Expenses Public safety Change in net assets Net Assets - Beginning of year Net Assets - End of year 825,933 868,952 (43,019) 161,360 200,000 (38,640) 1,088,595 818,077 270,518 $ 2,075,888 $ 1,887,029 $ 188,859 Yearended Yearended June 30, 2005 June 30, 2004 Change $ 157,778 $ 202,104 $ (44,326) 54,334 200,000 (145,666) 2,709,065 2,625,441 83,624 32,432 14,089 18,343 11,625 15,378 (3,753) 2,965,234 3,057,012 (91,778) 2,776,375 2,533,745 242,630 188,859 523,267 (334,408) 1,887,029 1,363,762 523,267 $ 2,075,888 $ 1,887,029 $ 188,859 -4- Exhibit F Page 9 of 3,~ SUNRIVER SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 -5- Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Sunriver Service District, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Sunriver Service District funds are classified as governmental funds. Governmental funds. Governmental funds are used to account for essentially the same functions as governmental activities in the government-wide financial statements. However, unlike the govemment-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government-wide Statement of Net Assets and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-wide Statement of Activities have been included in this report. Sunriver Service District reported activity in two governmental funds during the fiscal years ended June 30, 2005. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures and Changes in Fund Balances. Sunriver Service District adopts an annual budget for each of its funds. A budgetary comparison statement has been provided to demonstrate compliance with the annual budgets. The Basic Governmental Funds Financial Statements can be found on pages 8-12 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 13-20 of this report. Governmient-wide Financial Analysis Net assets, at a specific point in time, serve as a useful indicator of an entity's financial position. In the case of Sunriver Service District, assets exceed liabilities by $2,075,888 at June 30, 2005. Forty percent of Sunriver Service District's net assets represent its investment in capital assets (equipment and vehicles). This is a decrease of 6% from 46% at June 30, 2004. Sunriver Service District uses these capital assets to provide services to citizens and these net assets are not available for future spending. ExhibitF:~ Page / 0 --of 39_ SUNRIVER SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Of the remaining 60%, $1,249,955, of Sunriver Service District's net assets at June 30, 2005, 87% may be used to meet the District's on-going obligations to citizens and creditors and the balance is restricted for future equipment needs. Governmental Activities Governmental activities generated $188,859 of Sunriver Service District's net assets during the fiscal years ended June 30, 2005. Financial] Analysis of the District's Funds Sunriver Service District uses fund accounting to ensure and demonstrate compliance with finance-related ' legal requirements. Governmental funds. The focus of Sunriver Service District's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Sunriver Service District's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending as of the end of the fiscal year. As of June 30, 2005, $1,249,120 is the reported ending fund balance for Sunriver Service District's governmental funds, of which $1,087,760 was unreserved at June 30, 2005. General Fund Budgetary Highlights Sunriver Service District transferred appropriations between expenditure categories and from contingency to cover unanticipated expenditures. General Fund actual revenues exceeded estimated revenues by $171,981., of which $145,510 was due to actual property taxes exceeding the estimated amount in fiscal year 1 2004-2005. ' Capital Assets Sunriver Service District's investment in capital assets for its governmental activities as of June 30, 2005, is $825,933„ net of accumulated depreciation, which is a decrease of $43,019 from June 30, 2004. Investment in capital assets is composed of equipment and vehicles. During fiscal year 2004-2005, the District expended $92,974 for capital assets and recognized $135,993 in depreciation expense. Additional information on Sunriver Service District's capital assets is included in Note 4 on page 19 of this report. -6- _ Exhibit F: SUNRIVER SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Key Economic Factors and Budgets Information for the Future • The unemployment rate in the State of Oregon is one of the highest in the United States, but the economy of Deschutes County, in which Sunriver Service District operates, has been robust, especially in residential and commercial construction. Deschutes County has experienced the highest growth rate of all Oregon counties over the past twelve years. • It is anticipated the cost of providing health benefits to District employees will increase by 9% in the next fiscal year. Requests for Information This financial report is designed to provide a general overview to those parties interested in Sunriver Service District's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Sunriver Service District, c/o Deschutes County Finance Department, 1300 NW Wall Street, Bend, Oregon, 97701 or Sunriver Service District, P.O. Box 2108, Sunriver, Oregon, 97707. L I I -7- Exhibit_ F Page --r2- of __3q BASIC FINANCIAL STATEMENTS Exhibit F Page t3__of 3y_ SUNRIVER SERVICE DISTRICT STATEMENT OF NET ASSETS JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) Primary Government Governmental Activities 2005 2004 ASSETS Cash and cash equivalents Accounts receivable, net Property taxes receivable Prepaid expenses Equipment and vehicles, net TOTAL ASSETS LIABILITIES Account; payable Accrued payroll and related taxes Noncurrent liabilities Accrued vacation TOTAL LIABILITIES NET ASSETS See notes to financial statements -8- $ 1,340,601 $ 1,093,767 21,097 23,060 103,236 103,341 16,168 17,130 825,933 868,952 2,307,035 2,106,250 52,186 70,178 81,039 86,757 97,922 62,286 231,147 219,221 825,933 868,952 161,360 200,000 1,088,595 818,077 $ 2,075,888 $ 1,887,029 Invested in capital assets Restricted for major equipment replacement Unrestricted TOTAL NET ASSETS Exhibit Paee - i! _4 of 5 SUNRIVER SERVICE DISTRICT STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Primary government Government activities Public safety Program Revenues Capital Grants Net (Expense) Revenue and Charges for and Changes in Net Assets Expenses Services Contributions 2005 2004 $ 2,776,375 $ 157,778 $ 54,334 $ (2,564,263) $ (2,131,641) General Revenues: Property taxes 2,709,065 2,625,441 Investment earnings 32,432 14,089 Miscellaneous 7,574 15,378 Gain on sale of capital assets 4,051 Total general revenues 2,753,122 2,654,908 Change in net assets 188,859 523,267 Net Assets - Beginning of year 1,887,029 1,363,762 Net Assets - End of year $ 2,075,888 $ 1,887,029 See notes to financial statements -9- Exhibit rr Paize 15 o: SUNRIVER SERVICE DISTRICT GOVERNMENTAL FUNDS - BALANCE SHEET JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) TOTALS General Reserve 2005 2004 See notes to financial statements -10- $ 1,249,120 $ 978,938 825,933 868,952 16,168 17,130 82,590 84,290 (97,923) (62,281) $ 2,075,888 $ 1,887,029 ASSETS Cash and investments Property taxes receivable Accounts receivable, net of allowance for uncollectible accounts TOTAL. ASSETS LIABILITIES Accounts payable Deferred revenue Accrued payroll and related taxes TOTAL. LIABILITIES FUND BALANCE Reserved for. Major equipment replacement Unreserved Total fund balances TOTAL. LIABILITIES AND FUND BALANCES Fund Balances, above Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Prepaid expenses are reported as expenditures in the period paid and are not reported as assets in the funds. Some of the District's taxes will be collected after year-end, but are not current available resources and, therefore, are not reported in the funds. Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net assets of governmental activities, page 8. Exhibit_ F Pave 1G!:,__ of -_-_i-\- $ 856,765 $ 483,837 $ 1,340,602 $ 1,093,767 103,236 103,236 103,341 21,097 21,097 23,060 $ 981,098 $ 483,837 1,464,935 $ 1,220,168 $ 52,186 $ $ 52,186 $ 70,178 82,590 82,590 84,290 81,039 81,039 86,762 215,815 215,815 241,230 161,360 161,360 200,000 765,283 322,477 1,087,760 778,938 765,283 483,837 1,249,120 978,938 $ 981,098 $ 483,837 $ 1,464,935 $ 1,220,168 SUNRIVER SERVICE DISTRICT GOVERNMENTAL FU NDS - STATEMENT OF REVENUES, EXPENDITURES AN D CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Totals General Reserve 2005 2004 Revenues ' Taxes and assessments $ 2,710,766 $ $ 2,710,766 $ 2,598,974 Interest 24,538 7,894 32,432 14,089 Charges for services 162,778 162,778 207,104 Grants 2,755 51,579 54,334 Donations 200,000 Other revenues 6,625 6,625 10,378 TOTAL REVENUES 2,907,462 59,473 2,966,935 3,030,545 Expenditures Personal services 2,066,078 2,066,078 1,832,762 Materials and services 536,937 120 537,057 575,639 Interest expense 643 643 1,132 ' Capital outlay 92,975 92,975 88,542 TOTAL EXPENDITURES 2,603,658 93,095 2,696,753 2,498,075 Excess of revenues over expenditures 303,804 (33,622) 270,182 532,470 Other Financing Sources (Uses) Transfers in 159,200 159,200 154,500 Transfers out (159,200) (159,200) (154,500) ' TOTAL OTHER FINANCING SOURCES AND (USES) (159,200) 159,200 ' Net change in fund balances 144,604 125,578 270,182 532,470 FUND BALANCES - Beginning of year 620,679 358,259 978,938 446,468 FUND BALANCES - End of year $ 765,283 $ 483,837 $ 1,249,120 $ 978,938 See notes to financial statements -11- Exhibit PaoP SUNRIVER SERVICE DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED-JUNE 30, 2004) Amounts reported for governmental activities in the Statement of Activities are different because: Net change in fund balances - total governmental funds, page 11. Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation ($135,993) exceeded capital outlays ($92,975) in the current period. Some expenses do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. This is the amount by which accrued vacation ($35,636) exceeded prepaid expenses ($-968) in the current period. Property tax revenue is recognized under the modified accruall basis of accounting only to the extent it has been collected within sixty days of year-end. On the accrual basis Statement of Activities, such revenue is recognized regardless of when collected. See notes to financial statements -12- 2005 2004 $ 270,182 $ 532,470 (43,018) (30,336) (36,604) (5,338) (1,701) 26,471 $ 188,859 $ 523,267 Changes in net assets of governmental activities, page 9. Exhibit f' Page [_97 nf__A - IOUNRIVER SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District Sunriver Service District was formed as a political subdivision of Deschutes County, Oregon, on July 1, 2002, by voter approval to provide services to the community of Sunriver, Oregon. Services provided by the District are currently limited to law enforcement, fire prevention and protection and EMS. Government wide and Fund Financial Statements The government-wide financial statements (i.e., the Statement of Net Assets and the Statement of Changes in Net Assets) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The District has no proprietary or fiduciary funds. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. It is the District's policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. ' Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Property tax revenues are considered to be available when they are collectible ' within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenues received after this period are considered unavailable. Expenditures are recorded ' when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences and interest on long-term debt payments are recorded only when payment is due. -13- Exhibit F Page _ 19 of 3-A SUNRIVER SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued Property taxes associated with the current fiscal period are considered susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the District. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. The District reports the following governmental funds: The General Fund is the District's primary operating fund. It accounts for all financial resources of the general government except those accounted for by another fund. The Reserve Fund accumulates funds for acquisition of capital assets. Budget Policy Budgets are adopted on a basis consistent with generally accepted accounting principles of the United States of America. The resolution authorizing appropriations sets the level by which expenditures cannot legally exceed appropriations. For the General and Reserve Funds, total personal services, materials and services, debt services, capital outlay and other expenditures by department are the levels of control established by resolution. The detailed budget document contains more specific detailed information for the above-mentioned expenditure categories. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriations ordinance. The original budget requires hearings before the public, publications in newspapers and approval by the governing body. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Such transfers require approval by the governing body. Appropriations lapse as of year- end. Reporting Entity The District has adopted the position of the American Institute of Certified Public Accountants Governmental Accounting Standards Board regarding the definition of the "reporting entity". The basic criterion for determining the organizations, activities and functions of related agencies that should be included in a governmental unit's component unit financial statements is the exercise of oversight responsibility over such agencies by the governmental unit's elected officials. The manifestations of such oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. There were no specific agencies which required consideration under the criterion in the current fiscal year for inclusion in the District's reporting entity. -14- Exhibit F-- Page 2~ )f 3_ SUNRIVER SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 11 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Reporting Entity - Continued Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes County, since the District's governing board is comprised of the Deschutes County Commissioners. Cash and Investments Cash includes amounts in demand deposits, cash on hand and amounts in investment pools that have the general characteristics of demand deposit accounts, such as the State of Oregon Treasurer's Local Governmental Investment Pool. Receivables Receivables, consisting entirely of ambulance receivables, are shown net of an allowance for uncollectible accounts. The allowance of $8,587 at year-end is based on prior experience in collecting ambulance receivables. Capital Assets Capital assets, which include property, plant and equipment are reported in the government-wide financial statements. In the governmental fund statements, capital assets are charged to expenditures as purchased. Capital assets are recorded at historical cost. Donated assets are recorded at estimated fair market value as of the date of the donation. Capital assets are defined by the District as assets with an initial cost of $1,500 or more and an estimated ' useful life greater than two years. Additions or improvements and other capital outlays that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Major outlays for capital assets and improvements are capitalized as projects are constructed. For budgetary purposes, assets with an individual cost of $1,500 or more and a life of two years or more are categorized as capital outlay. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Assets and is calculated on the straight-line basis over the following estimated useful lives: ' Asset Years ' Vehicles 2-18 Operating equipment 5-16 Office equipment 5 ' -15- Exhibit F Page 2 t of 3A SUNRIVER SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Compensated Absences Accumulated vested vacation pay is accrued as it is earned. Accrued vacation payable is recorded at actual accrued hours times current pay rates plus related fringe benefits. For governmental funds, the amount is maintained separately and represents a reconciling item between the fund-level and government-wide presentations. Sick pay, which does not vest, is recognized when leave is taken. Property Taxes/Deferred Revenue Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied as of July 1 based on assessed values as of January 1. Property tax payments are due in three equal installments, on November 15, February 15 and May 15. A discount of 3% is available if taxes are paid in full by November 15 and a discount of 2% on the unpaid balance is available if taxes are paid in full by February 15. Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May 15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2005 fiscal year tax levy was $2,786,147. A portion of the property taxes receivable may not be collected in the next fiscal year. Tax revenue is considered available for expenditure upon receipt. Uncollected property taxes are shown on the governmental balance sheet as receivables. Collections within sixty days subsequent to year-end have been accrued and the remaining taxes receivable are recorded as deferred revenue on the Governmental Funds Balance Sheet since they are not deemed available to finance operations of the current period. Fund .Balances Undesignated fund balance indicates the portion of fund equity which is available for budgeting in future periods. Reserved fund balance indicates the portion of fund equity which is legally reserved for specific purposes, such as equipment replacement. Comparative Totals/Reclassifications The financial statements include summarized prior year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 3:0, 2004, from which such summarized information was derived. -16- Exhibit_ F Page 22_ of ?)A SUNRIVER SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Estimates The preparation of financial statements in conformity with generally accepted accounting principals in the United States of America requires management to make estimates and assumptions that effect certain reported amounts and disclosures. NOTE 2 - ORGANIZATION AND FUND BALANCE The District is governed by the three Deschutes County Commissioners and managed by a five-member board. General Fund The General Fund is utilized to account for the transactions of the District. Property taxes, ambulance billings and law enforcement contracts are its principle sources of revenue. Expenditures are for the operation and administration of the District. Reserve Fund The Reserve Fund is utilized to account for capital outlay transactions of the District. Transfers from the General Fund are its principal source of revenue. Expenditures are for capital outlays. NOTE 3 - CASH AND INVESTMENTS Cash and investments consist of the following at June 30, 2005: Depository accounts $ 93,105 Investments 1,247,496 $ 1,340,601 Deposits Custodial Credit Risk - Deposits. Custodial credit risk is the risk that in the event of a bank failure, the District's deposits may not be returned to it. The District's policy for custodial credit risk for deposits is based on statutory requirements for collateralization of such amounts. As of June 30, 2005, none of the District's deposit balance of $93,105 was exposed to custodial credit risk as all amounts were insured. -17- Exhibit F Page 2--:!5 of 3-1 - SUNRIVER SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 3 - CASH AND INVESTMENTS - CONTINUED Investments The District participates in the Oregon State Treasurer's Local Government Investment Pool (LGIP), a non-SEC regulated, open-ended, no-load diversified portfolio created under ORS 294.805 to 294.895. The L.GIP is administered by the State Treasurer and the Oregon Investment Council with the advice of the Oregon Short-Term Fund Board. The Oregon State Treasurer's Office has calculated the fair value of the underlying investments of the LGIP and the District's share of market value is reflected below. The portfolio has at least 50% of its investments maturing within 93 days and up to 25% maturing in one to three years. Investment State Investment Pool Interest Rate Risk Fair Value $ 1,247,496 The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond the limits provided by state statues. Credit Risk State law limits investments to obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers' acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds and obligations of states and municipalities. The District has no investment policy that would further limit its investment choices. The District's investment in the LGIP is not rated. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investment in the LGIP is not deemed to be a security, which is a transferable financial instrument that evidences ownership, and is, therefore, not subject to custodial credit risk. Exhibit F -18- Page 24_ of 3A SUNRIVER SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 4 - CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2005, is as follows: Balance Balance July 1, 2004 Additions Deletions June 30, 2005 Vehicles $ 952,696 $ 33,183 (8,000) $ 977,879 Operating equipment 68,755 49,679 118,434 Office equipment 29,465 10,112 39 577 , 1,050,916 92,974 (8,000) 1,135,890 Less accumulated depreciation 181,964 135,993 (8,000) 309,957 $ 868,952 $ (43,019) $ - $ 825,933 NOTE 5 - PENSION PLAN Plan .Description The District contributes to the Public Employee Retirement System (PERS), an agent multiple-employer defined benefit pension plan administered by the State of Oregon. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The State of Oregon assigns the authority to establish and amend benefit provisions to the PERS► Board of Trustees. PERS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to PERS, P.O. Box 23700, Tigard, Oregon, 97281-3700 or telephone at 888-320-7377. Funding Policy Plan members are required to contribute 6.0% of their annual covered salary and the District is required to contribute at an actuarially determined rate. The current employer rate is 12.63% of annual covered payroll. The contribution requirements of plan members and the District are established and may be amended by the PERS Board of Trustees. The District's contributions to PERS for the year ending June 30, 2005, was $283,270, equal to the required contributions for each year. All employees are required by law to submit the contributions adopted by PERS and the employers' contributions are calculated in conformance with standards of GASB Statement 27. There is no net pension obligation. The contributions actually made are equal to the annual pension cost. See the primary government's financial statement for trending analysis. -19- Exhibit F Page -2-5 of 5/A SUNRIVER SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 6 RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters. To reduce the risk of incurring material losses related to the above, the District pays annual insurance premiums to a commercial supplier. Limitations on claims are as follows: General and commercial auto up to $1,000,000; excess liability up to $1,000,000; and pollution liability up to $100,000. The District also carries commercial insurance for workers' compensation and employee health and accident insurance. Settled claims from those risks have not exceeded commercial insurance coverage in any of the past two fiscal years. -20- Exhibit F Page 2CP Of 11 11 11 11 11 REQUIRED SUPPLEMENTARY INFORMATION I Exhibit F Page 21 of 3L{ SUNRIVER SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL (BUDGETARY BASIS) GENERAL FUND YEAR ENDED JUNE 30, 2005 REVENUES Properly taxes Contract payments Grants Interest and rents Charges for services Miscellaneous TOTAL. REVENUES EXPENDITURES Police Personal services Materials and services Fire and emergency services Personal services Materials and services Pathway Rangers Personal services Materials and services General Materials and services Capital outlay Debl: service interest Contingency TOTAL EXPENDITURES Budgeted Amounts Over (Under) Original Final Actual Budget $ 2,565,256 $ 2,565,256 $ 2,710,766 $ 145,510 5,000 5,000 5,000 2,755 2,755 10,000 10,000 24,538 14,538 151,000 151,000 157,778 6,778 1,470 1,470 6,625 5,155 2,732,726 2,735,481 2,907,462 171,981 920,148 960,148 928,784 (31,364) 141,280 141,280 106 968 (34 312) , , 1,061,428 1,101,428 1,035 752 (65 676) , , 1,088,895 1,123,895 1,085,872 (38,023) 241,761 254,516 232 793 (21 723) , , 1,330,656 1,378,411 1 318 665 (59 746) , , , 51,653 60,653 51,422 (9,231) 6,500 7,700 230 5 (2 470) , , 58,153 68,353 56 652 (11 701) , , 239,254 239,254 191,946 (47,308) 100 100 (100) 1,000 1,000 643 (357) 407,910 312,710 (312 710) , 648,264 553,064 192,589 (360 475) , 3,098,501 3,101,256 2,603,658 (497,598) (365,775) (365,775) 303,804 669,579 (159,200) (159,200) (159,200) (524,975) (524,975) 144,604 669,579 524,975 524,975 620,679 95,704 $ $ 765,283 $ 765,283 -21- Excess of revenues over (under) expenditures OTHER FINANCING USES Transfer to Reserve Fund Excess (deficiency) of revenue over (under) expenditures and other financing uses FUND BALANCE - Beginning of year FUND BALANCE - End of year Exhibit F Page 28~ Of _ ' SUNRIVER SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALA NCE- BUDGET AND ACTUAL (BUDGETARY BASIS) RESERVE FUND YEAR ENDED JUNE 30, 2005 Budgeted Amounts Over(Undeo Original Final Actual Budget REVENUES ' Interest income $ 1,500 $ 1,500 $ 7,894 $ 6,394 Grants 49,679 51,579 1,900 TOTAL REVENUES 1,500 51,179 59,473 8,294 EXPENDITURES ' Materials and services 250 250 120 (130) Capital outlay 45,480 95,159 92,975 (2,184) Contingency 470,080 470,080 (470,080) ' TOTAL EXPENDITURES 515,810 565,489 93,095 (472,394) Excess of revenues over ' (under) expenditures (514,310) (514,310) (33,622) 480,688 OTHER FINANCING SOURCES ' Operating transfers in 159,200 159,200 159,200 Excess of revenues and other sources over (under) expenditures and other ' uses (355,110) (355,110) 125,578 480,688 ' FUND BALANCE - Beginning of year 355,110 355,110 358,259 3,149 FUND BALANCE - End of year $ - $ - $ 483,837 $ 483,837 -22- Exhibit F Page .29 of 3 OTHER SUPPLEMENTARY INFORMATION Exhibit Page 36 of 3q SUNRIVER SERVICE DISTRICT (19,050) 20,647 $ 2,710,766 -23- i SCHEDULE OF PROPERTY TAX TRANSACTIONS YEAR ENDED JUNE 30, 2005 Beginning Turnover Taxes Balance and Interest From County Receivable Tax Year 2004-05 Levy Adjustments (Discounts) Treasurer June 30, 2005 2004-2005 $ 2,786,147 $ (11,939) $ (65,292) $ 2,639,818 $ 69,098 2003-2004 75,350 (4,112) 2,594 52,257 21,575 2002-2003 27,957 (251) 1,951 17,094 12,563 Totals $ 2,889,454 $ (16,302) $ (60,747) 2,709,169 $ 103,236 Adjustments for Accruals June 30, 2004 June 30, 2005 Total revenue, modified accrual basis of accounting Exhibit_ Y Page 31-of-22 P\ AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Exhibit F Page ~2 of ~ AUDIT COMMENTS AND DISCLOSURES ' REQUIRED BY STATE REGULATIONS Internal Control We have audited the basic financial statements of the Sunriver Service District (the District), as of and for the year ended June 30, 2005, and have issued our report thereon dated August 3, 2005. In planning and performing our audit, we considered the District's internal control in order to determine our auditing ' procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control. A material weakness is a condition in which the design or operation of one or more of the internal control cornponents does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the basic financial statements being audited may occur and not be detE:cted within a timely period by employees in the normal course of performing their assigned functions. Accounting Records We found the condition of the accounting records adequate for audit purposes. Collateral Cash and investments were adequately secured during the year. Indebtedness The District's short-term and long-term debt was found to be within legal limitations on the amount of debt which may be incurred, liquidation of debts were within the prescribed period of time and indebtedness was in compliance with provisions of bond indentures and other agreements, including restrictions on the use of monies available to retire indebtedness. Budgeting We reviewed the District's procedures for preparation, adoption and execution of its budget for the year ended June 30, 2005, and the procedures for preparation and adoption of their budget for the year beginning July 1, 2005. All procedures were found to be in compliance with statutory requirements. Insurance Coverage and Fidelity Bonds Insurance coverage and fidelity bonds were reviewed and found to be in compliance with statutory requirements. Programs Funded From Outside Sources Requirements The District had no programs which required review or comment. -24- Exhibit F Page -3 of ~ AUDIT COMMENTS AND DISCLOSURES ' REQUIRED BY STATE REGULATIONS Public Contracts and Purchasing Procedures for public contracts and purchasing were reviewed and found to be in compliance with statutory requirements. Investments Investments were reviewed and found to be in compliance with statutory requirements. Financial Reporting Requirements The, District was not required to file financial reports with governmental agencies. Highway Funds The; District does not receive any highway funds. This report is intended solely for the information and use of management, the board of directors and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these specified parties. ' HARRIGAN PRICE FRONK & CO. LLP Ceitified Public Accountants & Consultants By: ' Candace S. Fronk - a Pa ner ' August 3, 2005 -25- Exhibit Page A of ,q t REDMOND LIBRARY COUNTY SERVICE DISTRICT ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2005 Exhibit 6 Page 2 of 2.~ REDMOND LIBRARY COUNTY SERVICE DISTRICT DISTRICT OFFICIALS JUNE 30, 2005 GOVERNING BODY Deschutes County Commissioners Mike Daly Dennis Luke Tom Dewolf Registered Agent and Office Michael Maier 1300 NW Wall Bend, Oregon 97701 Exhibit C~ Page_ of REDMOND LIBRARY COUNTY SERVICE DISTRICT TABLE OF CONTENTS YEAR ENDED JUNE 30, 2005 Page DISTRICT OFFICIALS INDEPENDENT AUDITORS' REPORT .............................................................................................................1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets 8 Statement of Activities 9 Fund Financial Statements Balance Sheet - General Fund ..............................................................................................................10 Statement of Revenues, Expenditures and Changes in Fund Balance - General Fund ...................................................................................................................................11 Statement of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Budgetary Basis) - General Fund ....................................................................12 Notes to Financial Statements .....................................................................................................................13 OTHER SUPPLEMENTARY INFORMATION Schedule of Property Tax Transactions .......................................................................................................18 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS ....................................19 Exhibit G Page A of ~ John P. Harrigan, CPA Wesley B. Price III, CPA, Candace S. Fronk. CPA, 975 SW Colorado Suite 200 Bend, OR 97702 Tel (541) 382-4791 Fax (541) 388-1 124 www.bendcpa.com email@bendcpa.com INDEPENDENT AUDITORS' REPORT Deschutes County Commissioners Redmond Library County Service District Deschutes County, Oregon We have audited the accompanying financial statements of the governmental activities and each major fund of Redmond Library County Service District, a component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Redmond Library County Service District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Redmond Library County Service District's management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year summarized comparative information has been derived from the District's 2004 financial statements that were audited by us. In our report dated October 21, 2004, we expressed an unqualified opinion. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and the major fund of Redmond Library County Service District, as of June 30, 2005, and the respective changes in financial position thereof, and the budgetary comparison for the General Fund for the year then ended in conformity with generally accepted accounting principles in the United States of America. The accompanying management discussion and analysis starting on page 3 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Exhibit C7 Page 5 of Z Deschutes County Commissioners Redmond Library County Service District Page 2 Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Redmond Library County Service District's basic financial statements. The other supplemental information is presented for purposes of additional analysis and is not a required part of the financial statements. The supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants /~4;~ZZ'4 41at/ By: Candace S. Fronk - partner July 25, 2005 Exhibit G7 Page Co of 2,4 MANAGEMENT'S DISCUSSION AND ANALYSIS Exhibit Page 7 of Z REDMOND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 As management of Redmond Library County Service District, located in Deschutes County, Oregon, we offer readers of Redmond Library County Service District's financial statements this narrative overview and analysis of the financial activities of Redmond Library County Service District for the fiscal year ended June 30, 2005. Financial Highlights • The liabilities of Redmond Library County Service District exceeded its assets at June 30, 2005, by $585,018. • Total net assets increased by $104,668. • As of June 30, 2005, Redmond Library County Service District's governmental fund reported an ending fund balance of $10,112, 5.5% of fiscal year 2004-2005 expenditures. • Redmond Library County Service District's total debt decreased by $109,899 or 16%, during the fiscal year ended June 30, 2005. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Redmond Library County Service District's basic financial statements. These basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of Redmond Library County Service District's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of Redmond Library County Service District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of Redmond Library County Service District is improving or deteriorating. The Statement of Activities presents information showing how Redmond Library County Service District's net assets changed during the fiscal year ended June 30, 2005. Changes in net assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash, or other financial assets, flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued interest expense, that will result in cash flows in future fiscal periods. Each of these government-wide financial statements, Statement of Net Assets and Statement of Activities, show the functions of Redmond Library County Service District that are supported primarily by property taxes -3- Exhibit C,-? Page $ of REDMOND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 (governmental activities). The governmental activity of Redmond Library County Service District is servicing the general obligation debt issued to build a county library. The government-wide financial statements can be found on pages 8-9 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Redmond Library County Service District, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The Redmond Library County Service District fund is classified as a governmental fund. Governmental funds. Governmental funds are used to account for the same functions as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government-wide Statement of Net Assets and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance: to the Government-wide Statement of Activities have been included in this report. Redmond Library County Service District reported activity in a governmental fund during the fiscal year ended June 30, 2005. Information is presented in the Governmental Fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance for the District's fund. Redmond Library County Service District adopts an annual budget for its fund. A budgetary comparison statement has been provided to demonstrate compliance with the annual budget. The Basic Governmental Fund Financial Statements can be found on pages 10-11 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 13-17 of this report. Government-wide Financial Analysis Net assets, at a specific point in time, serve as a useful indicator of an entity's financial position. In the case of Redmond Library County Service District, liabilities exceeded assets resulting in a net deficit of $585,018 -4- Exhibit Ca Page _,1_ of a-'o REDMOND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 11 11 at June 30, 2005. The resources, property taxes, to repay the general obligation bond will be available in future periods. Redmond Library County Service District's net assets increased by $104,668 during the year ended June 30, 2005. Redmond Library County Service District's Comparative Net Assets Governmental Activities 2005 2004 Current assets $ 15,989 $ 20,658 Current liabilities 109,971 116,158 Long-term liabilities 491,036 594,186 Total liabilities 601,007 710,344 Net assets $ (585,018) $ (689,686) The increase in the District's net assets occurs because a portion of the pro perty tax levy (Revenues) is used to repay a portion of its general obligation bond (Liability). Redmond Library County Service District's Comparative Changes in Net Assets Governmental Activities 2005 2004 Revenues: Property taxes $ 177,940 $ 186,144 Interest 2,391 1,367 Total Revenues 180,331 187,511 Expenses: General government 75,663 Increase in net assets Net assets - Beginning of year Net assets - End of year -5- 68,718 104,668 118,793 (689,686) (808,479) $ (585,018) $ (689,686) Exhibit Page LO of 2 REDMOND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 District property taxes are levied in an amount sufficient to generate resources for the annual scheduled payment of both principal and interest on the District's general obligation bond. As only the interest is reported as an expense (the principal payment is a reduction of a liability), revenues exceed expenses. Due to the nature of the District's activity, there is not a significant change in results from prior years. The District's major source of revenue is the property tax levy. The amount of the annual levy is sufficient to allow for the discount taken by a majority of taxpayers and for delinquencies. Financial Analysis of the District's Fund Redmond Library County Service District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Redmond Library County Service District's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Redmond Library County Service District's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending as of the end of the fiscal year. As of June 30, 2005, $10,112, all restricted for debt service, is the reported ending fund balance for Redmond Library County Service District's governmental fund, a decrease of $3,696 from June 30, 2004. One measure of the General Fund's liquidity is the relationship of both the unreserved and the total fund balance to the Fund's total expenditures. The fund balance as of June 30, 2005, for the General Fund is 5.5% of total General Fund fiscal year 2004-2005 expenditures. General Fund Budgetary Highlights There were no differences between the Redmond Library County Service District's General Fund budget as originally adopted and the final amended budget. General Fund actual revenues exceeded estimated revenues; by $6,304, due mainly to the receipt of $4,453 more in property taxes than estimated. Debt Administration Long-Term Debt Redmond Library County Service District has $594,186 in outstanding general obligation bond. Redmond Library County Service's debt decreased by $109,899 (16%) during the fiscal year. Redmond Library County Service District is not separately rated by the bond rating services. However, the most recent debt issued by Deschutes County, of which Redmond Library County Service District is a component unit, was rated Al by Moody's Investors Services. Additional information on Deschutes County's long-term debt is included in Note 3 on pages 17 of this report. -6- Exhibit Page II of REDMOND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Key Economic Factors and Budget Information for the Future • The unemployment rate in the State of Oregon is one of the highest in the United States, but the economy of Deschutes County has been robust, especially in residential and commercial construction. Deschutes County has experienced the highest growth rate of all Oregon counties over the past twelve years. Requests for Information This financial report is designed to provide a general overview to those parties interested in Redmond ' Library County Service District's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Bend, Oregon, 97701. -7- Exhibit G Page _1_` of BASIC FINANCIAL STATEMENTS Exhibit C-4 Page _J 3_ of ~8~ REDMOND LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF NET ASSETS JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) Primary Government Governmental Activities 2005 2004 ASSETS Cash and investments $ 8,643 $ 12,088 Property taxes receivable 7,346 8,570 T01-AL ASSETS 15,989 20,658 LIABILITIES Accrued interest expense 6,821 6,259 General obligation bond debt - current portion 103,150 109,899 General obligation bond debt - long-term portion 491,036 594,186 TOTAL LIABILITIES 601,007 710,344 NET ASSETS Unrestricted $ (585,018) $ (689,686) See notes to financial statements -8- Exhibit C Page 14 of a REDMOND LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Primary government Government activities Interest expense Program Revenues Capital Grants Net (Expense) Revenue and Charges for and Changes in Net Assets Expenses Services Contributions 2005 2004 $ 75,663 $ $ $ (75,663) $ (68,718) General Revenues: Property taxes 177,940 186,144 Investment earnings 2,391 1,367 Total general revenues 180,331 187,511 Change in net assets 104,668 118,793 Net Assets - Beginning of year (689,686) (808,479) Net Assets - End of year $ (585,018) $ (689,686) See notes to financial statements -9- Exhibit Page 5 of a REDMOND LIBRARY COUNTY SERVICE DISTRICT (BALANCE SHEET - GENERAL FUND JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) 2005 2004 ASSETS Cash and investments Property taxes receivable TOTAL ASSETS LIABILITIES Deferred revenue TOTAL_ LIABILITIES FUND BALANCE Reserved for debt service TOTAL. LIABILITIES AND FUND BALANCE Fund Balance, above Amounts reported for governmental activities in the Statement of Net Assets are different because: Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Some of the District's taxes will be collected after year-end, but are not current available resources and, therefore, are not reported in the fund. Interest on long-term debt is not accrued in the governmental funds but rather is recognized as an expenditure when due. Net assets of governmental activities, page 8 See notes to financial statements -10- $ 8,643 $ 12,088 7,346 8,570 $ 15,989 $ 20,658 $ 5,877 $ 6,850 5,877 6,850 10,112 13,808 $ 15,989 $ 20,658 $ 10,112 $ 13,808 (594,186) (704,085) 5,877 6,850 (6,821) (6,259) $ (585,018) $ (689,686) Exhibit 6 Page of a REDMOND LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) 2005 2004 Revenues Property taxes $ 178,913 $ 187,304 Interest 2,391 1,367 Total Revenues 181,304 188,671 Expenditures Debt service Principal 109,899 116,863 Interest 75,101 68,137 Total Expenditures 185,000 185,000 Net change in fund balance (3,696) 3,671 FUND BALANCE - Beginning of year 13,808 10,137 FUND BALANCE - End of year $ 10,112 $ 13,808 Net change in fund balance - General Fund, above $ (3,696) $ 3,671 Amounts reported for governmental activities are different because: Property tax revenue is recognized under the modified accrual basis of accounting only to the extent it has been collected within sixty days of year-end. On the accrual basis Statement of Activities, such revenue is recognized regardless of when collected. (973) (1,160) Interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than when it accrues. (562) (581) Repayment of principal is reported as an expenditure in the current year fund financials but reduces the liability in the Statement of Assets. 109,899 116,863 Change in net assets of governmental activities, page 9 $ 104,668 $ 118,793 See notes to financial statements -11- Exhibit 2 _ Page _I~- of a-8' REDMOND LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET (BUDGETARY BASIS) GENERAL FUND YEAR ENDED JUNE 30, 2005 Revenues Property taxes Interest Total Revenues Expenditures Debt service Net change in fund balance FUND BALANCE - Beginning of year FUND BALANCE - End of year Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ 174,460 $ 174,460 $ 178,913 $ 4,453 540 540 2,391 1,851 175,000 175,000 181,304 6,304 185,000 185,000 185,000 (10,000) (10,000) (3,696) 6,304 12,000 12,000 13,808 1,808 $ 2,000 $ 2,000 $ 10,112 $ 8,112 See notes to financial statements -12- Exhibit G Page I T of REDMOND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 11 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District Redmond Library County Service District was established under ORS 451.410 to 451.610 in July of 1995, to finance the remodeling of a former elementary school as a public library. Subsequent to the construction of the library, ownership of the building was transferred to the Deschutes Public Library Service District. Per an intergovernmental agreement, the Deschutes Public Library District agreed to continuously use the library facilities to provide library services as long as any bonds issued were outstanding. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on all of the activities of the government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support. The District has no proprietary or fiduciary funds. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within sixty days of the end of the current fiscal period. Revenues received after this period are considered unavailable. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to interest on long-term debt payments are recorded only when payment is due. Property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to -13- Exhibit ~a Page i 13 of 11 11 REDMOND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued be measurable and available only when cash is received by the government. The District reports the following governmental fund: The General Fund is the District's only fund. All financial resources of the District are accounted for in this fund. Budget Policy The District prepares a budget for all funds which meet requirements of state law. The budget is prepared on the modified accrual basis of accounting. The resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. For the District, debt service is the sole level of control established by resolution. The detailed budget document provides for specific detailed information for the above-mentioned expenditure category. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriations resolution. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Appropriations lapse as of year-end. Reporting Entity The District has adopted the position of the American Institute of Certified Public Accountants Governmental Accounting Standards Board regarding the definition of the "reporting entity". The basic criterion for determining the organizations, activities and functions of related agencies that should be included in a governmental unit's component unit financial statements is the exercise of oversight responsibility over such agencies by the governmental unit's elected officials. The manifestations of such oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. There were no specific agencies which required consideration under the criterion in the current fiscal year for inclusion in the District's reporting entity. Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes County, since the District's governing board is comprised of the Deschutes County Commissioners. Comparative Totals The! financial statements include summarized prior-year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30, 2004, from which such summarized -14- Exhibit of 11 11 REDMOND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE '1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Comparative Totals - Continued information was derived. Cash and Cash Equivalents The District maintains merged bank accounts and investments for its funds in a central pool of cash and investments with Deschutes County. This pool includes amounts in demand deposits and investments in the Oregon State Treasurer's Local Government Investment Pool (LGIP). The investment policy of the County is to invest in LGIP and interest bearing demand deposits with local banks and to transfer resources to the general checking account as the need arises. This policy is in accordance with ORS 294.035 which specifies the types of investments authorized for municipal corporations. Deschutes County allocates earnings on investments to each of the District's funds based on average daily cash balances. Investments are stated at cost which approximates fair value. Property Taxes/Deferred Revenue Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied July 1 and property owners have the option of paying the full amount November 15 or February 15 less a discount, or paying in three installments, November 15, February 15 and May 15. Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May 15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2005 fiscal year tax levy was $182,872. Management has determined that due to the remedies available to collect property taxes, no allowance for uncollectible accounts is necessary. Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary collecting agency. Uncollected property taxes are shown in the General Fund balance sheet as receivables. Collections within sixty days subsequent to year-end have been accrued and the remaining taxes receivable are recorded as deferred revenue on the modified accrual basis of accounting since they are riot deemed available to finance operations of the current period. Lonij-term Debt Debi; is recognized as a liability of a governmental fund when due. The portion of debt that has not yet matured is reported on the government-wide financial statements as a long-term liability. Fund Balance Undesignated fund balance indicates the portion of fund equity which is available for appropriation in future periods. Reserved fund balance indicates the portion of fund equity which is legally restricted, such as for debt service. -15- Exhibit= Page Z I of REDMOND LIBRARY COUNTY SERVICE DISTRICT NOTE 2 - CASH AND INVESTMENTS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 As of June 30, 2005, the District has the following investment: Investment Maturities Fair Value Deschutes County Investment Pool Interest Rate Risk 6 months average $ 8,643 The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond the limits provided by State statute. Credit Risk State law limits investments to obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers' acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds and obligations of states and municipalities. The District has no investment policy that would further limit its investment choices. The District's investment in the Deschutes County Investment Pool is not rated. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure on the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investment in the Deschutes County investment pool is not deemed to be a security, which is a transferable financial instrument that evidences ownership, and is, therefore, not subjected to custodial credit risk. NOTE 3 - BOND DEBT The District issued general obligation bonds on July 20, 1995, to refinance the remodel of an historic building for use as a public library. The amount of issue was $1,997,109. The bonds mature on June 1 of the years 2006 - 2012. Interest on these bonds shall be payable only at maturity at rates varying from 4.80% to 6.0% and are not subject to redemption prior to maturity. -16- Exhibit C? Page of ;P_ REDMOND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 3 - BOND DEBT - CONTINUED The! maturity schedule for the bonds is as follows: Fiscal Year Ending June 30, 2006 2007 2008 2009 2010 2011-2012 Total Bonds Principal Interest Total $ 103,150 $ 81,850 $ 185,000 96,627 88,373 185,000 90,343 94,657 185,000 84,303 100,697 185,000 78,514 106,486 185,000 141,249 228,751 370,000 $ 594,186 $ 700,814 $ 1,295,000 The bond transactions for the year are as follows: Balance Principal Interest Balance July 1, Matured Matured June 30, 2004 and Paid and Paid 2005 1995 series $ 704,085 $ 109,899 $ 75,101 $ 594,186 -17- Exhibit G Page of _2 OTHER SUPPLEMENTARY INFORMATION Exhibit G Page 2--j of a~ REDMOND LIBRARY COUNTY SERVICE DISTRICT SCHEDULE OF PROPERTY TAX TRANSACTIONS YEAR ENDED JUNE 30, 2005 Beginning Balance and Interest Tax Year 2004-05 Levy Adjustments (Discounts) Collections 2004-2005 $ 182,872 $ (784) $ (4,285) $ 173,268 2003-2004 5,369 (293) 185 3,724 2002-2003 1,928 (17) 135 1,179 2001-2002 861 (45) 102 652 2000-2001 311 (3) 65 298 Prior 97 (2) 13 42 Totals $ 191,438 $ (1,144) $ (3,785) 179,163 Adjustments for Accruals June 30, 2004 June 30, 2005 Modified accrual basis tax revenue -18- (1,719) 1,469 $ 178,913 Taxes Receivable June 30, 2005 $ 4,535 1,537 867 266 75 66 $ 7,346 Exhibit 6 Page 25 of a AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Exhibit 6 Page Z(.e of u 11 11 11 11 11 n AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Internal Control We have audited the basic financial statements of the Redmond Library County Service District, as of and for the year ended June 30, 2005, and have issued our report thereon dated July 25, 2005. In planning and performing our audit, we considered the District's internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control. A material weakness is a condition in which the design. or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control over financial reporting that we consider to be material weaknesses. Accounting Records We found the condition of the accounting records adequate for audit purposes. I I Collateral Cash and investments are pooled with Deschutes County and were adequately secured during the year. Indebtedness I V The District's short-term and long-term debt was found to be within legal limitations on the amount of debt which may be incurred, liquidation of debts were within the prescribed period of time, and indebtedness was in compliance with provisions of bond indentures and other agreements, including restrictions on the use of monies available to retire indebtedness. Budgeting We reviewed the District's procedures for preparation, adoption and execution of its budget for the year ended June 30, 2005, and the procedures for preparation and adoption of their budget for the year beginning July 1, 2005. All procedures were found to be in compliance with statutory requirements. Insurance Coverage and Fidelity Bonds Insurance coverage and fidelity bonds were reviewed and found to be in compliance with statutory requirements. Programs Funded From Outside Sources Requirements The District had no programs which required review or comment. -19- Exhibit 6 Page _2,,-7 of AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS ' Public Contracts and Purchasing Procedures for public contracts and purchasing were reviewed and found to be in compliance with statutory requirements. I Investments Investments were reviewed and found to be in compliance with statutory requirements. ■ Financial Reporting Requirements I The District was not required to file financial reports with governmental agencies. Highway Funds ' The District does not receive any highway funds. ' This report is intended solely for the information and use of management, the governing board and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these specified parties. ' HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants B / y' .ndace S. Fronk - a partner July 25, 2005 -20- Exhibit Page Z g of SUNRIVER LIBRARY COUNTY SERVICE DISTRICT ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2005 Exhibit Page -3- of SUNRIVER LIBRARY COUNTY SERVICE DISTRICT DISTRICT OFFICIALS JUNE 30, 2005 GOVERNING BODY Deschutes County Commissioners Mike Daly Dennis Luke Tom DeWolf Registered Agent Michael Maier 1300 NW Wall Bend, Oregon 97701 Exhibit 14 Page 3 of a g SUNRIVER LIBRARY COUNTY SERVICE DISTRICT TABLE OF CONTENTS YEAR ENDED JUNE 30, 2005 Page DISTRICT OFFICIALS INDEPENDENT AUDITORS' REPORT ..1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets 8 Statement of Activities 9 Fund Financial Statements Balance Sheet - General Fund 10 Statement of Revenues, Expenditures and Changes in Fund Balance - General Fund 11 Statement of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Budgetary Basis) - General Fund 12 Notes to Financial Statements 13 OTHER SUPPLEMENTARY INFORMATION Schedule of Property Tax Transactions 18 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS 19 Exhibit -f f Page q of John P. Harrigan. CPA Wesley B. Price III, CPA Candace S. Fronk, CPA INDEPENDENT AUDITORS' REPORT Deschutes County Commissioners Sunriver Library County Service District Deschutes County, Oregon We have audited the accompanying financial statements of the governmental activities and the major fund of Sunriver Library County Service District, a component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Sunriver Library County Service District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the 975 SW Suite 200 Colorado Sunriver Library County Service District's management. Our responsibility is to express Bend, OR 97702 opinions on these financial statements based on our audit. The prior year summarized Tel (541) 382-4791 comparative information has been derived from the District's 2004 financial statements Fax(541)388-1124 that were audited by us. In our report dated October 21, 2004, we expressed an www.bendcpa.com unqualified opinion. email@bendcpa.com We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material ' misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well ' as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions. ' In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund information of Sunriver Library County Service District, as of June 30, 2005, and the ' respective changes in financial position and the budgetary comparison for the General Fund for the year then ended in conformity with generally accepted accounting principles in the United States of America. The accompanying management discussion and analysis starting on page 3 is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Sunriver Library County Service District's basic financial statements. The other supplementary information is presented for purposes of r Exhibit ff Page 5 of Deschutes County Commissioners Sunriver Library County Service District Deschutes County, Oregon Page 2 additional analysis and is not a required part of the financial statements. The supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants By: andace S. Fronk - a partner July 25, 2005 Exhibit /f Page 4o of MANAGEMENT'S DISCUSSION AND ANALYSIS Exhibit Page L_ of _aj~_ SUNRIVER LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 As management of Sunriver Library County Service District, located in Deschutes County, Oregon, we offer readers of Sunriver Library County Service District's financial statements this narrative overview and analysis of the financial activities of Sunriver Library County Service District for the fiscal year ended June 30, 2005. Financial Highlights • The liabilities of Sunriver Library County Service District exceeded its assets at June 30, 2005 by $750,130. • Total net assets increased by $48,526. • As of June 30, 2005, Sunriver Library County Service District's governmental fund reported ending fund balance of $10,387, 11 % of fiscal year 2004-2005 expenditures. • Sunriver Library County Service District's total debt decreased by $50,000 or 6%, during the fiscal year ended June 30, 2005. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Sunriver Library County Service District's basic financial statements. These basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of Sunriver Library County Service District's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of Sunriver Library County Service District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of Sunriver Library County Service District is improving or deteriorating. The Statement of Activities presents information showing how Sunriver Library County Service District's net assets changed during the fiscal year ended June 30, 2005. Changes in net assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash, or other financial assets, flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued interest expense, that will result in cash flows in future fiscal periods. Each of these government-wide financial statements, Statement of Net Assets and Statement of Activities, shows the functions of Sunriver Library County Service District that are supported primarily by property taxes (govemmental activities). The governmental activity of Sunriver Library County Service District is servicing the general obligation debt issued to build a county library. -3- Exhibit {-r` Page 8' of SUNRIVER LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 The government-wide financial statements can be found on pages 8-9 of this report. Fund Financial Statements ■ A fund is; a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Sunriver Library County Service District, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance-related ■ legal requirements. The Sunriver Library County Service District fund is classified as a governmental fund. Governmental funds. Governmental funds are used to account for the same functions as governmental ■ activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented ' for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government-wide Statement of Net Assets and a reconciliation ■ from the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Government-wide Statement of Activities have been included in this report. ■ Sunriver Library County Service District reported activity in a governmental fund during the fiscal year ended June 30, 2005. Information is presented in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance for the District's fund. Sunriver Library County Service District adopts an annual budget for its fund. A budgetary comparison statement has been provided to demonstrate compliance with the annual budget. ■ The Basic, Governmental Fund Financial Statements can be found on pages 10-11 of this report. Notes to the Financial Statements ■ The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 13-17 of this report. Government-wide Financial Analysis Net assets at a specific point in time, serve as a useful indicator of an entity's financial position. In the case ■ of Sunriver Library County Service District, liabilities exceeded assets resulting in a net deficit of $750,130 at June 30, 2005. The resources, property taxes, to repay the general obligation bond will be available in future periods. -4- Exhibit Page c)_ of _,23 SUNRIVER LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Sunriver Library County Service District's net assets increased by $48,526 during the year ended June 30, 2005. Sunriver Library County Service District's Comparative Net Assets 2005 2004 Current assets $ 13,401 $ 15,088 Current liabilities 53,531 53,744 Long-term liabilities 710,000 760,000 Total liabilities 763,531 813,744 Net assets $ (750,130) $ (798,656) The increase in the District's net assets occurs because a portion of the property tax levy (Revenues) is used to repay a portion of its general obligation bond (Liability). Sunriver Library County Service District's Comparative Chances in Net Assets Revenues: Property taxes Interest Governmental Activities 2005 2004 $ 92,171 $ 92,034 1,068 415 Total Revenues Expenses: General government Increase in net assets Net Assets - Beginning of year Net Assets - End of year 93,239 92,449 44,713 47,298 48,526 45,151 (798,656) (843,807) $ (750,130) $ (798,656) District property taxes are levied in an amount sufficient to generate resources for the annual scheduled payment of both principal and interest on the District's general obligation bond. As only the interest is -5- Exhibit /f Page / 0 of SUNRIVER LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 reported as an expense ( the principal payment is a reduction of a liability), revenues exceed expenses. Due to the nature of the District's activity, there is not a significant change in results from prior years. The District's major source of revenue is the property tax levy. The amount of the annual levy is sufficient to allow for the discount taken by a majority of taxpayers and for delinquencies. Financial Analysis of the District's Fund Sunriver Library County Service District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Sunriver Library County Service District's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Sunriver Library County Service District's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending as of the end of the fiscal year. As of June 30, 2005, $10,387, all restricted for debt service, is the reported ending fund balance for Sunriver Library County Service District's governmental fund, a decrease of $1,248 from June 30, 2004. One measure of the General Fund's liquidity is the relationship of both the unreserved and the total fund balance to the Fund's total expenditures. The fund balance as of June 30, 2005, for the General Fund is 11% of total General Fund fiscal year 2004-2005 expenditures. General Fund Budgetary Highlights There were no differences between the Sunriver Library County Service District's General Fund budget as originally adopted and the final amended budget. General Fund actual revenues exceeded estimated revenues by $2,752, due mainly to the receipt of $2,035 more in property taxes than estimated. Debt Administration Long-Term Debt Sunriver Library County Service District has $760,000 in outstanding general obligation bond. Sunriver Library County Service District's debt decreased by $50,000 (6%) during the fiscal year. Sunriver Library County Service District is not separately rated by the bond rating services. However, the most recent debt issued by Deschutes County, of which Sunriver Library County Service District is a component unit, was rated Al by Moody's Investors Services. Additional information on Deschutes County's long-term debt is included in Note 3 on pages 17 of this report. -6- Exhibit Page _ of SUNRIVER LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Key Economic Factors and Budget Information for the Future • The unemployment rate in the State of Oregon is one of the highest in the United States, but the economy of Deschutes County has been robust, especially in residential and commercial construction. Deschutes County has experienced the highest growth rate of all Oregon counties over the past twelve years. Requests for Information This financial report is designed to provide a general overview to those parties interested in Sunriver Library County Service District's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Bend, Oregon, 97701. -7- Exhibit Page /Z of BASIC FINANCIAL STATEMENTS Exhibit 14 Page 3 of a38 SUNRIVER LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF NET ASSETS JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) ASSETS Cash and investments Property taxes receivable TOTAL ASSETS LIABILITIES Accrued interest expense General obligation bond - current portion General obligation bond - long-term portion TOTAL LIABILITIES NET ASSETS Unrestricted See notes to financial statements -8- Primary Government Governmental Activities 2005 2004 $ 9,633 $ 10,770 3,768 4,318 13,401 15,088 3,531 3,744 50,000 50,000 710,000 760,000 763,531 813,744 $ (750,130) $ (798,656) Exhibit H Page 4 of SUNRIVER LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Primary government Government activities Interest expense Program Revenues Operating Grants Net (Expense) Revenue and Charges for and Changes in Net Assets Expenses Services Contributions gnn- 7AnI $ 44,713 $ $ $ (44,713) $ (47,298) General Revenues: Property taxes 92,171 92,034 Investment earnings 1,068 415 Total general revenues 93,239 92,449 Change in net assets 48,526 45,151 Net Assets - Beginning of year (798,656) (843,807) Net Assets - End of year $ (750,130) $ (798,656) See notes to financial statements -9- Exhibit- -f Page 15 of 8 SUNRIVER LIBRARY COUNTY SERVICE DISTRICT BALANCE SHEET - GENERAL FUND JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) 2005 2004 ' ASSETS Cash and investments $ 9,633 $ 10,770 Properbt taxes receivable 3,768 4,318 TOTAL ASSETS $ 13,401 $ 15 088 , LIABILITIES ' Deferred revenue $ 3,014 $ 3,453 TOTAL LIABILITIES 3,014 3,453 FUND BALANCE Reserved for debt service 10,387 11,635 TOTAL LIABILITIES AND FUND BALANCE $ 13,401 $ 15,088 Fund Balance, above $ 10,387 $ 11,635 Amounts reported for governmental activities in ' the Statement of Net Assets are different because: Long-.term liabilities are not due and payable in the ' current period and, therefore, are not reported in the funds. (760,000) (810,000) Some of the District's taxes will be collected after year-end, but are not current available resources and, therefore, are not reported in the fund. 3,014 3,453 Interest on long-term debt is not accrued in the governmental funds but rather is recognized as an expenditure when due. (3,531) (3,744) ' Net assets of governmental activities, page 8 $ (750,130) $ (798,656) See notes to financial statements -10- Exhibit Page 1lo of SUNRIVER LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) 2005 2004 Revenues Property taxes $ 92,610 $ 92,756 Interest 1,067 415 TOTAL REVENUES 93,677 93,171 . Expenditures Debi: service ' Principal Interest 50,000 45,000 44,925 47,512 TOTAL EXPENDITURES ' 94,925 92,512 Net change in fund balance (1,248) 659 ' FUND BALANCE - Beginning of year 11,635 10,976 FUND BALANCE - End of year $ 10,387 $ 11,635 ' Net change in fund balance - General Fund, above $ (1,248) $ 659 Amounts reported for governmental activities are different because: ' Property tax revenue is recognized under the modified accrual basis of accounting only to the extent it has ' been collected within sixty days of year-end. On the accrual basis Statement of Activities, such revenue is recognized regardless of when collected. (439) (722) ' Interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather ' than when it accrues. 213 214 Repayment of principal is reported as an expenditure in the Current year fund financials but reduces the liability ' in the Statement of Assets. 50,000 45,000 Change in net assets of governmental activities, page 9. $ 48 526 $ 45 151 ■ , , See notes to financial statements -11- Exhibit f{ Page /7 of _a3_ SUNRIVER LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET (BUDGETARY BASIS) GENERAL FUND YEAR ENDED JUNE 30, 2005 REVENUES Property taxes Interest TOTAL REVENUES EXPENDITURES Debt service Net change in fund balance FUND BALANCE - Beginning of year FUND BALANCE - End of year Budgeted Amounts Actual Variance with Original Final Amounts Final Bud et g $ 90,575 $ 90,575 $ 92,610 $ 2,035 350 350 1 067 717 , 90,925 90,925 93 677 2 752 , , 94,925 94,925 94 925 , (4,000) (4,000) (1,248) 2,752 11,000 11,000 11,635 635 $ 7,000 $ 7,000 $ 10,387 $ 3,387 See notes to financial statements -12- Exhibit_ d Page (g of _.2,g- SUNRIVER LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 11 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District Sunriver Library County Service District was established under ORS 451.410 to 451.610 in September of 1996, to construct a library within the District's boundaries and service the related debt. Subsequent to the construction of the library, ownership of the building was transferred to the Deschutes Public Library District. Per an intergovernmental agreement, the Deschutes Public Library Service District agreed to continuously use the library facilities to provide library services as long as any bonds issued were outstanding. Government-wide and Fund Financial Statements The government-wide financial statements (i.e.,. the statement of net assets and the statement of changes in net assets) report information on all of the activities of the government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees and charges for support. The District has no proprietary or fiduciary funds. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus, and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the ' current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within sixty days of the end of the current fiscal period. Revenues received after this period are considered unavailable. Expenditures are recorded ' when a liability is incurred, as under accrual accounting. However, expenditures related to interest on long-term debt payments are recorded only when payment is due. ' Property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to ' -13- Exhibit ff Page / 9 of SUNRIVER LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 11 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued be measurable and available only when cash is received by the government. The District reports the following governmental fund: The General Fund is the District's primary operating fund. It accounts for all financial resources of the District. Budget Policy The District prepares a budget for all funds which meet the requirements of state law. The budget is prepared on the modified accrual basis of accounting. The resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. For the District, debt service is the sole level of control established by resolution. The detailed budget document provides for specific detailed information for the above-mentioned expenditure category. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriations resolution. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Appropriations lapse as of year-end. Reporting Entity The District has adopted the position of the American Institute of Certified Public Accountants Governmental Accounting Standards Board regarding the definition of the "reporting entity." The basic criterion for determining the organizations, activities and functions of related agencies that should be included in a governmental unit's component unit financial statements is the exercise of oversight responsibility over such agencies by the governmental unit's elected officials. The manifestations of such oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. There were no specific agencies which required consideration under the criterion in the current fiscal year for inclusion in the District's reporting entity. Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes County, since the District's governing board is comprised of the Deschutes County Commissioners. Comparative Totals The financial statements include summarized prior year-end comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principals generally accepted in the United States of America. Accordingly, such information should be read in -14- Exhibit Page Z d of 2g' SUNRIVER LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Comparative Totals - Continued conjunction with the District's financial statements for the year ended June 30, 2004, from which such summarized information was derived. Cash and Cash Equivalents The District maintains merged bank accounts and investments for its funds in a central pool of cash and investments with Deschutes County. This pool includes amounts in demand deposits and investments in the Oregon State Treasurer's Local Government Investment Pool (LGIP). The investment policy of the County is to invest in LGIP and interest bearing demand deposits with local banks and to transfer resources to the general checking account as the need arises. This policy is in accordance with ORS 294.035 which specifies the types of investments authorized for municipal corporations. Deschutes County allocates earnings on investments to each of the District's funds based on average daily cash balances. Investments are stated at cost which approximates fair value. Property Taxes/Deferred Revenue Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied July 1 and property owners have the option of paying the full amount November 15 or February 15 less a discount, or paying in three installments, November 15, February 15 and May 15. Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May 15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2005 fiscal year tax levy was $94,723. Management has determined that due to the remedies available to collect property taxes, no allowance for uncollectible accounts is necessary. Tax revenue is considered available for expenditure upon receipt by the County, which serves as the inten,nediary collecting agency. Uncollected property taxes are shown in the General Fund balance sheet as receivables. Collections within sixty days subsequent to year-end have been accrued and the remaining taxes receivable are recorded as deferred revenue on the modified accrual basis of accounting since they are riot deemed available to finance operation of the current period. Long-term Debt Debt is recognized as a liability of a governmental fund when due. The portion of debt that has not yet matured is reported on the government-wide financial statements as a long-term liability. -15- Exhibit f f Page 2-1 of 2-9' SUNRIVER LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Fund Balance Undesignated fund balance indicates the portion of fund equity which is available for appropriation in future periods. Reserved fund balance indicates the portion of fund equity which is legally restricted, such as for debt service. NOTE 2 - CASH AND INVESTMENTS As of June 30, 2005, the District has the following investment: Investment Maturities Fair Value Deschutes County Investment Pool Interest Rate Risk 6 months average $ 9,633 ' The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond the limits provided by State statute. Credit Risk State law limits investments to obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds and obligations of states and municipalities. The District has no investment policy that would further limit its investment choices. The District's investment in the Deschutes County Investment Pool is not rated. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure on the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investment in the Deschutes County Investment Pool is not deemed to be a security, which is a transferable financial instrument that evidence ownership, and is, therefore, not subjected to custodial credit risk. -16- Exhibit ff Page 22 of 2 SUNRIVER LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 3 - BOND DEBT The District issued general obligation bonds on October 29, 1996, to finance the construction of the Sunriver Library. Interest is due semi-annually on December 1 and June 1 at a rate varying from 3.95% to 5.75% of each year through 2016. Bond principal is due June 1 of each year through 2016. A schedule of future requirements is as follows: Fiscal Year Ending June 30, Principal Interest Total 2006 $ 50,000 $ 42,375 $ 92,375 2007 55,000 39,750 94,750 2008 60,000 36,835 96,835 2009 60,000 33,595 93,595 2010 65,000 30,295 95,295 2011-2015 380,000 93,055 473,055 2016 90,000 5,130 95,130 $ 760,000 $ 281,035 $ 1,041,035 Bonds are callable beginning June 1, 2006, and any interest date thereafter, at par. The bond transactions during the year are as follows: Principal Interest Balance Matured Matured Balance July 1, 2004 and Paid and Paid June 30, 2005 1,996 Series $ 810,000 $ 50,000 $ 44,925 $ 760,000 -17 Exhibit H Page 23 of a OTHER SUPPLEMENTARY INFORMATION Exhibit f Page 2-4 of ;cK SUNRIVER LIBRARY COUNTY SERVICE DISTRICT SCHEDULE OF PROPERTY TAX TRANSACTIONS YEAR ENDED JUNE 30, 2005 Beginning Taxes Balance and Interest Receivable Tax Year 2004-05 Levy Adjustments (Discounts) Collections June 30, 2005 2'004-2005 $ 94,723 $ (406) $ (2,219) $ 89,748 $ 2,350 2'003-2004 2,649 (144) 91 1,837 759 2:002-2003 996 (9) 70 609 448 2:001-2002 467 (24) 55 354 144 2000-2001 159 (2) 33 152 38 Prior 45 (1) 6 21 29 Totals $ 99,039 $ (586) $ (1,964) 92,721 $ 3,768 Adjustments for accruals June 30, 2004 June 30, 2005 Modified accrual basis tax revenue (865) 754 $ 92,610 -18- Exhibit H Page 25 of ~g AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Exhibit Page 2~p of a- 11 n AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Internal Control We have audited the basic financial statements of the Sunriver Library County Service District, as of and for the year ended June 30, 2005, and have issued our report thereon dated July 25, 2005. In planning and performing our audit, we considered the District's internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements beinc~ audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control over financial reporting that we consider to be material weaknesses. Accounting Records We found the condition of the accounting records adequate for audit purposes. Collateral Cash and investments are pooled with Deschutes County and were adequately secured during the year. Indebtedness The District's short-term and long-term debt was found to be within legal limitations on the amount of debt which may be incurred, liquidation of debts were within the prescribed period of time and indebtedness was in compliance with provisions of bond indentures and other agreements, including restrictions on the use of monies available to retire indebtedness. Budgeting We reviewed the District's procedures for preparation, adoption and execution of its budget for the year ended June 30, 2005, and the procedures for preparation and adoption of their budget for the year beginning July 1, 2005. All procedures were found to be in compliance with statutory requirements. Insurance Coverage and Fidelity Bonds Insurance coverage and fidelity bonds were reviewed and found to be in compliance with statutory requirements. Programs Funded From Outside Sources Requirements The District had no programs which required review or comment. -19- Exhibit- Page Q-q of a2 K AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Public Contracts and Purchasing Procedures for public contracts and purchasing were reviewed and found to be in compliance with statutory requirements. Investments Investments were reviewed and found to be in compliance with statutory requirements. Financial Reporting Requirements The District was not required to file financial reports with governmental agencies. Highway Funds ' The District does not receive any highway funds. This report is intended solely for the information and use of management, the governing board and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these ' specified parties. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants ' By: andace S. Fronk - a -'partner July 25, 2005 -20- Exhibit k+ Page 2g of a,!~t BEND LIBRARY COUNTY SERVICE DISTRICT ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30. 2005 BEND LIBRARY COUNTY SERVICE DISTRICT ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2005 Exhibit Page 2 of BEND LIBRARY COUNTY SERVICE DISTRICT DISTRICT OFFICIALS JUNE 30, 2005 GOVERNING BODY Deschutes County Commissioners Mike Daly Dennis Luke Tom DeWolf Registered Agent and Office Michael Maier 1300 NW Wall Bend, Oregon 97701 Exhibit -_-I: Page 3 of >)C) BEND LIBRARY COUNTY SERVICE DISTRICT TABLE OF CONTENTS YEAR ENDED JUNE 30, 2005 Page DISTRICT OFFICIALS INDEPENDENTAUDITORS' REPORT .............................................................................................................1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Assets 8 Statement of Activities 9 Fund Financial Statements Balance Sheet - General Fund ..............................................................................................................10 Statement of Revenues, Expenditures and Changes in Fund Balance - General Fund .....................................................................................................................................11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities ...............................................12 Statement of Revenues, Expenditures and Changes in Fund Balance - Actual and Budget (Budgetary Basis) Notes to Financial Statements 13 OTHER SUPPLEMENTARY INFORMATION Schedule of Property Tax Transactions .......................................................................................................20 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS ....................................21 Exhibit -~E Page of INDEPENDENT AUDITORS' REPORT John P. Harrigan. CPA Wesley B. Price III, CPA Candace S. Fronk. CPA Deschutes County Commissioners Bend Library County Service District Deschutes County, Oregon We have audited the accompanying financial statements of the governmental activities and each major fund of Bend Library County Service District, a component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2005, which collectively comprise Bend Library County Service District's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Bend Library County Service District's management. Our responsibility is to express 975 SW Colorado opinions on these financial statements based on our audit. The prior year summarized Suite 200 comparative information has been derived from the District's 2004 financial statements Bend, OR 97702 Tel (541) 382-4791 that were audited by us. In our report dated October 21, 2004, we expressed an Fax (541) 388-1124. unqualified opinion. www.bendcpa.com email@bendcpa.corn We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material ' respects, the financial position of the governmental activities and the major fund of Bend Library County Service District, as of June 30, 2005, and the respective changes in financial position thereof, and the budgetary comparison for the General Fund for the ' year then ended in conformity with generally accepted accounting principles in the United States of America. ' The accompanying management discussion and analysis starting on page 3 is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited ' procedures, which consisted primarily of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Exhibit _ Page 5 of '35_ Deschutes County Commissioners and Managing Board Bend Library County Service District Page 2 ' Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Bend Library County Service District's basic financial statements. The other supplementary information is presented for purposes of additional analysis and is not a required part of the financial statements. The supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. ' HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants ' By. andace . Fronk - a partner ' July 25, 2005 Exhibit _--r Page of 3 MANAGEMENT'S DISCUSSION AND ANALYSIS Exhibit -:T Page r_ of 3 6 BEND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 As management of Bend Library County Service District, located in Deschutes County, Oregon, we offer readers of Bend Library County Service District's financial statements this narrative overview and analysis of the financial activities of Bend Library County Service District for the fiscal year ended June 30, 2005. Financial Highlights • The liabilities of Bend Library County Service District exceeded its assets at June 30, 2005, by $5,631,123. • The District's liabilities will be repaid with property taxes to be levied in future years. Generally accepted accounting principles do not allow this future cash flow to be reported as an asset in the current period. • Total net assets increased by $364,105. • As of June 30, 2005, the District's governmental fund reported ending fund balance of $87,920, 13% of fiscal year 2004-2005 expenditures. • The District's total debt decreased by $485,000 or 7%, during the fiscal year ended June 30, 2005. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to Bend Library County Service District's basic financial statements. These basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of Bend Library County Service District's finances, in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of Bend Library County Service District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of Bend Library County Service District is improving or deteriorating. The Statement of Activities presents information showing how Bend Library County Service District's net assets changed during the fiscal year ended June 30, 2005. Changes in net assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of the related cash, or other financial assets, flows. Thus, revenues and expenses are reported in this statement for some items, for example, property taxes and accrued interest expense, that will result in cash flows in future fiscal periods. -3- Exhibit :1:7 Page g of d BEND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Each of these government-wide financial statements, Statement of Net Assets and Statement of Activities, show the functions of Bend Library County Service District that are supported primarily by property taxes (governmental activities). The governmental activity of Bend Library County Service District is servicing the general obligation debt issued to build a county library. The government-wide financial statements can be found on pages 8-9 of this report. ' Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Bend Library County Service District, like other state and local government entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The Bend Library County Service District fund is classified as a governmental fund. Governmental funds. Governmental funds are used to account for the same functions as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. A reconciliation from the Governmental Funds Balance Sheet to the Government-wide Statement of Net Assets and a reconciliation from the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Government-wide Statement of Activities have been included in this report. Bend Library County Service District reported activity in a governmental fund during the fiscal year ended June 30, 2005. Information is presented in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance for the District's fund. Bend Library County Service District adopts an annual budget for its fund. A budgetary comparison statement has been provided to demonstrate compliance with the annual budget. The Basic Governmental Fund Financial Statements can be found on pages 10-12 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 14-19 of this report. -4- Exhibit 2 Page of BEND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Government-wide Financial Analysis Net assets, at a specific point in time, serve as a useful indicator of an entity's financial position. In the case of Bend Library County Service District, liabilities exceeded assets by $5,631,123 at June 30, 2005. Liabilities consist of accrued interest and outstanding principal on a general obligation bond, issued to finance the construction of the Bend Library. The resources to repay the general obligation bond will be available in future periods. The District has the authority to levy an annual property tax to meet its annual debt service requirement until the general obligation bond is fully repaid. Generally accepted accounting principles do not allow the recognition in the current period of the future levies. Please see Note 3 on pages 18-19 for additional information . Bend Library County Service District's net assets increased by $364,105 during the year ended June 30, 2005. Bend Library County Service District's Comparative Net Assets Current assets Other assets Total assets Current liabilities Long-term liabilities Total liabilities Net assets 2005 2004 Governmental Activities $ 108,532 $ 191,773 402,883 447,661 511,415 639,434 545,447 502,338 5,597,091 6,132,324 6,142,538 $ (5,631,123) 6,634,662 $ (5,995,228) The increase in the District's net assets occurred primarily due to the scheduled reduction in its general obligation bond and property tax revenues in excess of actual debt service on the general obligation bond. -5- Exhibit L Page (0 of C) 11 11 BEND I-MRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 Bend Library County Service District's Comparative Changes in Net Assets Governmental Activities 2005 2004 Revenues: Property taxes Interest & other Total Revenues Expenses: General government Increase in net assets Net Assets - Beginning of year Net Assets - End of year $ 600,749 $ 705,076 8,070 4,848 608,819 244,714 364,105 (5,995,228) $ (5,631,123) 709,924 316,718 393,206 (6,388,434) $ (5,995,228) District property taxes are levied in an amount sufficient to generate resources for the annual scheduled payment of both principal and interest on the District's general obligation bond. As only the interest is reported as an expense (the principal payment is a reduction of a liability), revenues exceed expenses. Due to the nature of the District's activity, there is not a significant change in results from prior years. The District's major source of revenue is the property tax levy. The amount of the annual levy is sufficient to allow for the discount taken by a majority of taxpayers and for delinquencies. Financial Analysis of the District's Fund Bend Library County Service District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Bend Library County Service District's governmental fund is to provide ' information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Bend Library County Service District's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending as of the 0 end of the fiscal year. As of June 30, 2005, $87,920, all reserved for debt service, is the reported ending fund balance for Bend Library County Service District's governmental fund, a decrease of $78,255 from June 30, 2004. One measure of the General Fund's liquidity is the relationship of both the unreserved and the total fund balance -6- Exhibit Z Page 11 of 3~ BEND LIBRARY COUNTY SERVICE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED JUNE 30, 2005 to the Fund's total expenditures. The fund balance as of June 30, 2005, for the General Fund is 13% of total General Fund fiscal year 2004-2005 expenditures. Generall Fund Budgetary Highlights There were no differences between the Bend Library County Service Districts' General Fund budget as originally adopted and the final amended budget. General Fund actual revenues exceeded estimated revenues by $21,745 due mainly to the receipt of $16,325 more in property taxes than estimated. Debt Administration Long-Term Debt At June 30, 2005, the Bend Library County Service District has $6,080,000 in outstanding general obligation bonds: $5,650,000 bonds issued to refund a portion of the Series 1996 bonds and $430,000 of the Series 1996 bonds. On December 1, 2003, the District refunded $5,315,000 of its general obligation with the proceeds of the $5,750,000 bond. This refunding resulted in an economic savings to the District of $418,800. The District's debt decreased by $435,000 during the year ended June 30, 2005, due to scheduled repayments. Bend Library County Service District is not separately rated by the bond rating services. However, the most ' recent debt issued by Deschutes County, of which Bend Library County Service District is a component unit, was rated Al by Moody's Investors Services. Additional information on Deschutes County's long-term debt is included in Note 3 on pages 18-19 of this report. Key Economic Factors and Budget Information for the Future The unemployment rate in the State of Oregon is one of the highest in the United States, but the economy of Deschutes County has been robust, especially in residential and commercial construction. Deschutes County has experienced the highest growth rate of all Oregon counties over the past twelve years. Requests for Information This financial report is designed to provide a general overview to those parties interested in Bend Library County Service District's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Deschutes County Finance Department, 1300 NW Wall Street, Bend, Oregon, 97701. -7- Exhibit __T_ Page 12- of .35 BASIC FINANCIAL STATEMENTS Exhibit Page 13 of 5(3 BEND LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF NET ASSETS JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) Primary Government Governmental Activities ASSETS Cash and investments Property taxes receivable Deferred refunding costs Accumulated amortization Deferred debt issue costs Accumulated amortization TOTAL ASSETS LIABILITIES Accrued interest expense General obligation bonds - current portion General obligation bonds - long-term portion Premium on bonds payable Accumulated amortization TOTAL LIABILITIES NET ASSETS Unrestricted See notes to financial statements -8- 2005 2004 $ 82,767 $ 159,743 25,765 32,030 407,373 407,373 (74,068) (37,034) 85,066 85,066 (15,488) (7,744) 511,415 639,434 15,447 17,338 530,000 485,000 5,550,000 6,080,000 57,556 57,556 (10,465) (5,232) 6,142,538 6,634,662 $ (5,631,123) $ (5,995,228) Exhibit .1 Page ),d1 of BEND LIBRARY COUNTY SERVICE DISTRICT ' STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) ' Program Revenues Operating Grants Net (Expense) Revenue and Charges for and Changes in Net Assets Expenses Services Contributions 2005 2004 ' Primary government Government activities Interest expense $ 244,714 $ $ $ (244,714) $ (316,718) i General Revenues: Property taxes 600,749 705,076 Investment earnings 8,070 4,848 Total general revenues 608,819 709,924 ,924 Change in net assets 364,105 393,206 NET ASSETS - Beginning of year (5,995,228) (6,388,434) ' NET ASSETS - End of year $ (5,631,123) $ (5,995,228) u See notes to financial statements -9- Exhibit ~ Page 15 of .30 BEND LIBRARY COUNTY SERVICE DISTRICT BALANCE SHEET - GENERAL FUND JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR JUNE 30, 2004) ASSETS Cash and investments Property taxes receivable TOTAL ASSETS LIABILITIES Deferred revenue TOTAL LIABILITIES FUND BALANCE Reserved for debt service TOTAL LIABILITIES AND FUND BALANCE Fund Balance, above Amounts reported for governmental activities in the Statement of Net Assets are different because: Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the financials. Deferred refunding costs and debt issue costs are expended when incurred in the fund financials. Premiums on bonds payable are included in bond proceeds in the fund financials. Some of the District's taxes will be collected after year-end, but are not currently available resources and, therefore, are not reported in the financials. Interest on long-term debt is not accrued in the governmental funds, but rather is recognized as an expenditure when due. Net assells of governmental activities, page 8 See notes to financial statements -10- 2005 2004 $ 82,767 $ 159,743 25,765 32,030 $ 108,532 $ 191,773 $ 20,612 $ 25,598 20,612 25,598 87,920 166,175 $ 108,532 $ 191,773 $ 87,920 $ 166,175 (6,080,000) (6,565,000) 402,883 447,661 (47,091) (52,324) 20,612 25,598 (15,447) (17,338) $ (5,631,123) $ (5,995,228) Exhibit - Page iCo of _3_ BEND LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - GENERAL FUND YEAR ENDED JUNE 30, 2005 (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) 2005 2004 REVENUES Property taxes Interest Miscellaneous 'TOTAL REVENUES EXPENDITURES Debt service Principal Interest 'TOTAL EXPENDITURES Excess of revenues over (under) expenditures Other financing sources (uses) Proceeds from refunding bonds Payment to bond refund bond escrow agent Debt issuance/defeasance costs Net change in fund balance FUND BALANCE - Beginning of year FUND BALANCE - End of year See notes to financial statements -11- $ 605,735 $ 708,775 8,070 4,848 116 613,805 713,739 485,000 350,000 207,060 289,114 692,060 639,114 (78,255) 74,625 5,750,000 (5,315,000) (435,000) (78,255) 74,625 166,175 91,550 $ 87,920 $ 166,175 Exhibit _ Page ~ of 3 ' BEND LIBRARY COUNTY SERVICE DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2005 ' (WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2004) Net change in fund balance - total governmental funds, page 11 Amounts reported for governmental activities are different: because: Property tax revenue is recognized under the modified accrual basis; of accounting only to the extent it has been collected within 60 days of year-end. On the accrual basis Statement of Activities, such revenue is recognized regardless of when collected. Interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than when it accrues. Bond proceeds are reported as financing sources in governmental funds but as long-term liabilities in the Statement of Net Assets. Costs associated with the issuance of debt are reported as an expenditure in the year incurred in fund financials but are capitalized and amortized in the Statement of Net Assets. Amortization of deferred refunding and debt issue costs are not a use! of current resources in the fund financials. Repayment of principal is reported as an expenditure in the current year fund financials but reduces the liability in the Statement of Net Assets. Change in net assets of governmental activities, page 9 See notes to financial statements -12- 2005 2004 $ (78,255) $ 74,625 (4,986) (3,698) 1,891 17,173 (5,750,000) 434,884 (39,545) (44,778) 485,000 5,665,000 $ 364,105 $ 393,206 Exhibit 3 Page I of 3 BEND LIBRARY COUNTY SERVICE DISTRICT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ACTUAL AND BUDGET (BUDGETARY BASIS) GENERAL FUND YEAR ENDED JUNE 30, 2005 REVENUES Property taxes Interest 'TOTAL REVENUES EXPENDITURES Debt service Excess of revenues over (under) expenditures FUND BALANCE - Beginning of year FUND BALANCE - End of year Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ 589,410 $ 589,410 $ 605,735 $ 16,325 2,650 2,650 8,070 5 420 , 592,060 592,060 613,805 21,745 692,060 692,060 692,060 (100,000) (100,000) (78,255) 21,745 160,000 160,000 166,175 6,175 $ 60,000 $ 60,000 $ 87,920 $ 27,920 See notes to financial statements -13- Exhibit Page g of 3 BEND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The District Bend Library County Service District was established under ORS 451.410 to 451.610 in July of 1995, to construct a library within the District's boundaries and service the related debt. Subsequent to the construction of the library, ownership of the building was transferred to the Deschutes Public Library District. Per an intergovernmental agreement, the Deschutes Public Library Service District agreed to continuously use the library facilities to provide library services as long as any bonds issued were outstanding. Government-wide and Fund Financial Statements The government-wide financial statements (i.e. the statement of net assets and the statement of changes in net assets) report information on all of the activities of the government. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which rely, to a significant extent, on fees and charges for support. The District has no proprietary or fiduciary funds. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Governmental fund financial statements are reported using the current financial resources measurement focus, and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within sixty days of the end of the current fiscal period. Revenues received after this period are considered unavailable. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to interest on long-term debt payments are recorded only when payment is due. -14- Exhibit Page ZO of BEND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 11 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Measurement Focus, Basis of Accounting and Financial Statement Presentation - Continued Property taxes associated with the current fiscal period are considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The (District reports the following governmental fund: The General Fund is the District's primary operating fund. It accounts for all financial resources of the District. Budget Policy The District prepares a budget for all funds which meet the requirements of state law. The budget is prepared on the modified accrual basis of accounting. The resolution authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed appropriations. For the District, debt ' service is the sole level of control established by resolution. The detailed budget document provides for specific detailed information for the above mentioned expenditure category. Unexpected additional resources may be added to the budget through the use of a supplemental budget and appropriations ' resolution. Original and supplemental budgets may be modified by the use of appropriation transfers between the levels of control. Appropriations lapse as of year-end. Reporting Entity The District has adopted the position of the American Institute of Certified Public Accountants Governmental Accounting Standards Board regarding the definition of the "reporting entity." The basic criterion for determining the organizations, activities and functions of related agencies that should be included in a governmental unit's component unit financial statements is the exercise of oversight responsibility over such agencies by the governmental unit's elected officials. The manifestations of such oversight responsibility are financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. There! were no specific agencies which required consideration under the criterion in the current fiscal year for inclusion in the District's reporting entity. Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes County, since the District's governing board is comprised of the Deschutes County Commissioners. -15- Exhibit --1:' Page of 3 d BEND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Comparative Totals The financial statements include summarized prior-year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30, 2004, from which such summarized information was derived. Cash and Cash Equivalents The District maintains merged bank accounts and investments for its funds in a central pool of cash and investments with Deschutes County. This pool includes amounts in demand deposits and investments in the Oregon State Treasurer's Local Government Investment Pool (LGIP). The investment policy of the County is to invest in LGIP and interest bearing demand deposits with local banks and to transfer resources to the general checking account as the need arises. This policy is in accordance with ORS 294.035 which specifies the types of investments authorized for municipal corporations. Deschutes County allocates earnings on investments to each of the District's funds based on average daily cash balances. Investments are stated at cost which approximates fair value. Property Taxes/Deferred Revenue ' Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied July 1 and property owners have the option of paying the full amount November 15 or February 15 less a discount, or paying in three installments, November 15, February 15 and May 15. Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May 15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2005 fiscal year tax levy was $617,380. Management has determined that due to the remedies available to collect property taxes, no allowance for uncollectible accounts is necessary. Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary collecting agency. Uncollected property taxes are shown in the General Fund balance sheet as receivables. Collections within sixty days subsequent to year-end have been accrued and the remaining taxes. receivable are recorded as deferred revenue on the modified accrual basis of accounting since they are not deemed available to finance operations of the current period. Longs-term Debt Debt is recognized as a liability of a governmental fund when due. The portion of debt that has not yet matured is reported on the government-wide financial statements as a long-term liability. -16- Exhibit 2 Page 2Z of 3 b BEND LIBRARY COUNTY SERVICE DISTRICT NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Fund Balance Undesignated fund balance indicates the portion of fund equity which is available for appropriation in future periods. Reserved fund balance indicates the portion of fund equity which is legally restricted, such as for debt service. NOTE 2 - CASH AND INVESTMENTS NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 As of June 30, 2005, the District has the following investment: Investment Maturities Fair Value Deschutes County Investment Pool Interest Rate Risk 6 months average $ 82,767 The District does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates beyond the limits provided by State statute. Credit` Risk State law limits investments to obligations of the United States Treasury and United States Government agencies and instrumentalities, certain bankers' acceptances, repurchase agreements, certain high-grade commercial paper and corporate bonds and obligations of states and municipalities. The District has no investment policy that would further limit it investment choices. The District's investment in the Deschutes County Investment Pool is not rated. Custodial Credit Risk ' For an investment, custodial credit risk is the risk that, in the event of the failure on the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investment in the Deschutes County Investment Pool is not deemed ' to be a security, which is a transferable financial instrument that evidence ownership, and is, therefore, not subjected to custodial credit risk. -17- Exhibit . Page 2'3 of 3 BEND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 3 - BOND DEBT The District issued general obligation bonds on May 1, 1996, to finance land acquisition and the construction of the Bend Public Library. Bond principal payments are due annually on June 1 and interest is due semi- annually on December 1 and June 1. The interest rate on the scheduled maturities ranges from 5.375% to 5.5%. On December 1, 2003, the District issued $5,750,000 in general obligation bonds to refund $5,315,000 of debt scheduled for repayment from June 1, 2007, through June 1, 2014. Proceeds from the refunding issued were placed with an independent escrow agent to ensure the payment of debt service on the refunded bonds. Bond principal payments on Series 2003 are due annually on December 1 and interest is due semi-annually on December 1 and June 1. The interest rate on the scheduled maturities ranges from 2.85% to 3.4%. At June 30, 2005, $430,000 was outstanding from the Series 1996 issue and $5,650,000 of the Series 2003 issue. District Debt Defeased Total Series 2003 $ 5,650,000 $ $ 5,650,000 Series 1996 430,000 5,315,000 5,745,000 Total $ 6,080,000 $ 5,315,000 $ 11,395,000 The maturity schedule for all District bonds is as follows: Fiscal Year Ending June 30, 2006 2007 2008 2009 2010 2011-2014 Principal $ 530,000 555,000 585,000 620,000 665,000 3,125,000 Interest Total $ 184,366 154,704 142,207 127,510 110,616 266,350 $ 714,366 709,704 727,207 747,510 775,616 3,391,350 Total Bonds $ 6,080,000 $ 985,753 $ 7,065,753 -18- Exhibit 1 Page 2A of 30 BEND LIBRARY COUNTY SERVICE DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 3 - BOND DEBT - CONTINUED The: bond transactions for the year are as follows: Balance Principal Interest Balance July 1, Matured Matured June 30, 2004 and Paid and Paid 2005 1996 series $ 815,000 $ 385,000 $ 43,806 $ 430 000 2003 series 5,750,000 100,000 163,254 , 5 650 000 , , Total $ 6,565,000 $ 485,000 $ 207,060 $ 6,080 000 , -19- Exhibit_ I Page ,)-5 of ?)07 OTHER SUPPLEMENTARY INFORMATION Exhibit :I Page (p of 3b BEND LIBRARY COUNTY SERVICE DISTRICT SCHEDULE OF PROPERTY TAX TRANSACTIONS ' YEAR ENDED JUNE 30, 2005 Beginning Taxes Balance and Interest Receivables Tax Year 2004-05Levy Adjustments (Discounts) Collections June 30, 2005 2004-2005 $ 617,380 $ (2,646) $ (14,467) $ 584,956 15,311 2003-2004 20,339 (1,110) 700 14,105 5,824 ' 2002-2003 7,058 (63) 493 4,316 3,172 2001-2002 3,196 (166) 378 2,420 988 2000-2001 1,127 (11) 238 1,083 271 Prior 297 (4) 41 135 199 Totals $ 649,397 $ (4,000) $ (12,617) 607,015 $ 25,765 Adjustments for Accruals June 30, 2004 June 30, 2005 Modified accrual basis tax revenue -20- (6,433) 5,153 $ 605,735 Exhibit Page 7 of 3C) AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Exhibit Page of 30 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Internal Control We have audited the basic financial statements of the Bend Library County Service District, as of and for the year ended June 30, 2005, and have issued our report thereon dated July 25, 2005. In planning and performing our audit, we considered the District's internal control in order to determine our auditing pnc)cedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce, to a relatively low level, the risk that errors or irregularities in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control over financial reporting that we consider to be material weaknesses. Accounting Records We found the condition of the accounting records adequate for audit purposes. Collateral Cash and investments are pooled with Deschutes County and were adequately secured during the year. Indebtedness The District's short-term and long-term debt was found to be within legal limitations on the amount of debt which may be incurred, liquidation of debts were within the prescribed period of time and indebtedness was in compliance with provisions of bond indentures and other agreements, including restrictions on the use of monies available to retire indebtedness. Budgeting We reviewed the District's procedures for preparation, adoption and execution of its budget for the year ended June 30, 2005, and the procedures for preparation and adoption of their budget for the year beginning July 1, 2005. All procedures were found to be in compliance with statutory requirements. Insurance Coverage and Fidelity Bonds Insurance coverage and fidelity bonds were reviewed and found to be in compliance with statutory requirements. Programs Funded From Outside Sources Requirements The, District had no programs which required review or comment. -21- Exhibit Z. Page P-O of 36 AUDIT COMMENTS AND DISCLOSURES REQUIRED BY STATE REGULATIONS Public Contracts and Purchasing Procedures for public contracts and purchasing were reviewed and found to be in compliance with statutory requirements. Investments Investments were reviewed and found to be in compliance with statutory requirements. Financial Reporting Requirements The District was not required to file financial reports with governmental agencies. Highway Funds ' The District does not receive any highway funds. This report is intended solely for the information and use of management, the governing board and the Oregon Secretary of State and is not intended to be and should not be used by anyone other than these specified parties. ' HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants ■ B ■ y. Candace . Fronk - a p rtner July 25, 2005 -22- Exhibit Z Page 30 of ~4 pS50C~4:p i zQ ~ 2~ Peer Review of the Internal Audit Pro r g am Deschutes County, Oregon Making Government Work Better Committee October 13, 2005 lO 1.A55(7(:Lgy~ $ O z F 9 c ObSRHh'.E': 4 Government Auditing St d d an ar s Th N ti l A i ti f ii. e a ona ssoc a on o Local Government Auditors u~. The Peer Review Team iv. Review Objectives Results of the Review - National Association of Local Government Auditors Exhibit 3 Page --L- of ~ AS90tAgT b~ 62 mw awl 'a'Eq{lTiE~' • • o n d a W , - _ " _j ov ud en it 13 # • Issued by the Comptroller ta d rd G l f th U i d S enera o e n te tates A L. . Applicable for federal state and , II I e v er local government organizations, programs, activities and functions es It o t e ev e National Association of Local Government Auditors nssrx;Jq~,,. Q ze' ~ 9` 'J C~'§RNMES P - A ud ifir • Independence: - ,44 to d rd ➢ Personal impairments I A L. ➢ External im airments p II I e v er ➢ Organizational impairments Organizational impairment considerations when reporting t ll hi d F es It o t erna y to t r parties e ex ev e National Association of Local Government Auditors Exhibit J Page 2 _of 9 ~~pSSO(:Ig i[5' 0' ry 0 Lt. 2 o a. wANM£~ • Professional judgment: to d rd • Competence: I a L. ➢ Technical knowledge and II I e Pe - er competence em- r-ri war i f4 C ev I* em rA > Continuing Professional Education li C • Qua ty ontrol and Assurance It o t e ev e 1 1 - National Association of Local Government Auditors p5S00t,T S r' O. C. ^~EANAi£tYS 4. - A ud it1r xj • Field Work Standards: to a - rd - - ➢ Planning I A L. . ➢ Su ervision p II I e er ➢ Evidence ev e a Audit Documentation es It o t e ev e National Association of Local Government Auditors Exhibit `l Page __3 of pG50Cydr O O'L 2 O. C~'ta~~iatKt¢ A md ffir g • Reporting standards: - to d - rd - ➢ Report Content ' A ➢ Re ort Qualit Elements p y II I e er ➢ Report Issuance and Distribution es It o t e ev e National Association of Local Government Auditors assoc1gn off... , oa z4 . ~ c 9 3~ SCOERNk E''LS ~ • "Each audit organization to d rd d ti di i con uc ng au ts n accordance 1 1 t A with these standards should he Pe er have an appropriate internal qualit control s stem in lace - y y p and undergo an external quality t l i " 4 4 es it o t ro rev ew. e con ev e National Association of Local Government Auditors Exhibit_ `1 Page -4 - of ~p^a80Gysh µ x K C~EHNME'P • Lk -A A Md itk Q "Audit organizations performing - to a - rd - dit d/ au s an or attestation A L . engagements in accordance with e Pe er GAGAS should have an external ev e a peer review at least once ever 3 - -4 4* wet ve F, y years by reviewers independent f th i i b es it o t e organ zat on eing e o ev e reviewed." - - National Association of Local Government Auditors O ASSOCtgYOy v rr a v! ~ J h ,.0~'EiNMEtst. • - A ud ifin g "The peer review should determine ta d rd - whether the audit organization's internal quality control system was A . U d t d h th li i d a equa e an w e er po c es an II I ~ e er procedures were being complied with ev e a to provide reasonable assurance of conforming with professional t d d " s an ar s. es It o f ev e National Association of Local Goverment Auditors Exhibit j1 Page _ 3 of ~assoc,yn.. J<J ay ^ 0 c ~'R41M~~ - L • • W • Knowledge of GAGAS and the to a ra t i t governmen env ronmen . I A. I L. Independent of the audit II I e Pe er organization being reviewed. --p F-F • Knowledge of how to perform a ev em peer review. es lt o t e ev e National Association of Local Government Auditors o assac,a~oY e z' /A " + . x L C J P ~ERHR4ETrS - A ud ifir g • Professional Organization: to a rd - ➢ Over 400 or anizations g I A L. ➢ Over 1,300 members II I e er • N.A.L.G.A. Objectives: Improve local government auditing Provide a forum for exchanging information and ideas es It ° t e ev em , I ➢ Encourage and uphold highest professional standards National Association of Local Government Auditors Exhibit J Page of L A^aSQC/qr oy Qs t O. o n a f9Nht£~.. _ _J ud • Peer Review Program is one to d rd f h ' means o ac ieving N.A.L.G.A. s I A objectives 11 17 he er ev e ear i I t o t e ev e - National Association of Local Government Auditors o~yassocigno~ c I ` ~RN4sIGF • John Finamore, CPA ta d rd A d S u it upervisor ' A . Cit and Count of Denver y y , II I e Pe er Colorado ev e a • David Dean, & ft a City Auditor k evl ev~ - -1 City of Gresham, Oregon National Association of Local Government Auditors Exhibit J Page _1? of AA n Q Ca'RNM~i A • • - A U CI !tft G • Assess the adequacy of the audit - ta d - rd - i ti ' i t l lit organ za on s n erna qua y I A L. control system: II I T he " Pe er ➢ Policies and procedures are adequately designed to address the standards es It o t e R ev iew National Association of Local Government Auditors off` Assocr.h ti 0 , c zQ; ! n 3 9 J (C~'RRNfr9EtxS 4'' • • • Assess whether Government to d rd A diti St d d u ng an ar s were I A L. followed: I e Pe aw er -T ew ➢ Examined work papers for a representative sample of audit engagements Reviewed continuin rofessional R es ult o t g p e R ev e .4 education files Inter i d dit l v ewe au personne National Association of Local Government Auditors Exhibit v Page '9,- of 9 -assocrq M ~ C~nxaa~'~iP _ _4 ud itid g • We found the Internal Auditor highly technically qualified and motivated. to d rd - • Audit recommendations are well accepted by county managers. 1 A L. • We had the opportunity to discuss the Internal Audit Program with a member of the Board of County II I e Pe er Commissioners / Audit Committee and the County Administrator of D h t C t E h ev e a esc u es oun y. ac person shared the Internal Auditor is doing a good job well , accepted by department managers and provides useful recommendations to the departments. • One of the first single-person audit departments to es I o t e successfully complete the NALGA Peer Review ev e National Association of Local Government Auditors `O p536C/1Y ZY: ~`ERNhYrtYt O ea m mit -Jo We noted per the Internal Audit Program's Policies and Procedures manual that the audit reports are available to to d rd the public. However, we noted no mechanism in place to notify the public of audit reports availability. Government Auditing Standards require that audit reports be available I A L. for public inspection. The County should consider placing the audit reports or listing the audit completed on the Count 's website e er y . • Dur our review of audit files we noted that some files ev e a t , contaned an Audit Finding Development Sheet document I that linked the audit report to the source documents, while others did not. The consistent use of the Audit Finding Development Sheet may enhance the referencing of audit report findings back to source documents. es I o t e ' In one engagement we reviewed, some of the audit report ev e amounts were referenced to a summary work paper but the summary work paper was not referenced to the supporting detailed schedules. We suggest that summary work papers be referenced to the supporting detailed schedules. National Association of Local Government Auditors Exhibit T Page _3_ of ___L i ~External ;a~~~RNMENK Quality Control Review of the Internal Audit Program Deschutes County, Oregon Conducted in accordance with guidelines of the National Association of Local Government Auditors for the period August 1, 2003 through August 31, 2005 Exhibit Page ( of (p pS 50CIgTi0' 0 0 COV~AWMEN~ P. October 13, 2005 National Association of Local Govemment Auditors Mr. David Givans, CPA County Internal Auditor Deschutes County, Oregon 1,300 NW Wall Street, Suite 200 Bend, Oregon 97701 We have completed a peer review of the Deschutes County Internal Audit Program for the period August 1, 2003 through August 31, 2005. In conducting our review, we followed the standards and guidelines contained in the Peer Review Guide published in May 2004, by the National Association of Local Government Auditors (N.A.L.G.A.). We reviewed the internal quality control system of your audit organization and conducted tests in order to determine if your internal quality control system operated to provide reasonable assurance of compliance with Government Auditing Standards issued by the Comptroller General of the United States. Due to variances in individual performance and judgement, compliance does not imply adherence to standards in every case, but does imply adherence in most situations. Based on the results of our review, it is our opinion that the County Internal Audit Program internal quality control system was suitably designed and operating effectively to provide reasonable assurance of compliance with Government Auditing Standards for audits and attestation engagements during August 1, 2003 through August 31, 2005. We have prepared a separate letter offering suggestions to further strengthen your internal quality control system. L '.John Finamore, CPA v City and County of Denver, Colorado David Dean City of Gresham, Oregon Exhibit K Page Z of Member Services, 2401 Regency Road, Suite 302, Lexington, KY 40503 Phone: 859/276-0686 Fax: 859/278-0507 email: jnorris@nasact.org website: www.nalga.org OP pSS>OC/gr,Oy. On. n moo: 0 J C0`FRNME~ P October 13, 2005 National Association of Local Govemment Auditors Mr. David Givans, CPA County Internal Auditor Deschutes County, Oregon 1300 NW Wall Street, Suite 200 Bend, Oregon 97701 Dear Mr. Givans, We have completed a peer review of Deschutes County Internal Audit Program for the period August 1, 2003 through August 31, 2005 and issued our report thereon dated October 13, 2005. We are issuing this companion letter to offer certain observations and suggestions stemming from our peer review. WE' would like to mention some of the areas in which we believe your office excels: ➢ We found the Internal Auditor highly technically qualified and motivated. ➢ Audit recommendations are well accepted by county managers. ➢ We had the opportunity to discuss the Internal Audit Program with a member of the Board of County Commissioners / Audit Committee and the County Administrator of Deschutes County. Each person shared the Internal Auditor is doing a good job, well accepted by department managers and provides useful recommendations to the departments. ➢ One of the first single-person audit departments to successfully complete the NALGA Peer Review. We offer the following observations and suggestions to enhance your organization's demonstrated adherence to government auditing standards: ➢ We noted per the Internal Audit Program's Policies and Procedures manual that the audit reports are available to the public. However, we noted no mechanism in place to notify the public of audit reports availability. Government Auditing Standards require that audit reports be available for public inspection. The County should consider placing the audit reports or listing the audit completed on the County's website. During our review of audit files, we noted that some files contained an Audit Finding Development Sheet document that linked the audit report to the source documents, while others did not. The consistent use of the Audit Finding Development Sheet may enhance the referencing of audit report findings back to source documents. Exhibit l Member Services, 2401 Regency Road, Suite 302, Lexington, KY 40503 Page of (,P_ Phone: 859/276-0686 Fax: 859/278-0507 email: jnorris@nasact.org website: www.nalga.org • Page 2 October 13, 2005 ➢ In one engagement we reviewed, some of the audit report amounts were referenced to a summary work paper but the summary work paper was not referenced to the supporting detailed schedules. We suggest that summary work papers be referenced to the supporting detailed schedules. We extend our thanks to you and the other city officials we met for the hospitality and cooperation extended to us during our review. Sincerely, ,/John Finamore, CPA City and County of Denver, Colorado David Dean City of Gresham, Oregon Exhibit- K Page -q__ of (,o J-~ ES C ■ ■ October 13 2005 John Finamore, Audit Supervisor Peer Review Team Leader City and County of Denver Office of the Auditor, Internal Audit 201 West Colfax Ave., Dept. 705 Denver, CO 80202 Dear Mr. Finamore and Mr. Dean, Deschutes County Internal Audit Program David Givans, CPA-County Internal Auditor 1300 NW Wall St., Suite 200, Bend, OR 97701 (541) 330-4674 - Fax (541) 385-3202 davidg@co.deschutes.or.us David Dean, City Auditor Peer Review Team Member City of Gresham Gresham, OR 97030-3813 I have reviewed your report of October 13, 2005 containing the results of your external quality control review of the Deschutes County Internal Audit Program. I am pleased you found the work performed from August 1, 2003 through August 30, 2005 was in full compliance with generally accepted government auditing standards. The Deschutes County Internal Audit Program is proud to follow national standards for government auditing. The standards provide assurances to the public that the program conducts its work professionally. Government audit offices nationwide - at the federal, state, and local level - are required by these standards to maintain systems of internal quality control and to have an external quality review once every three years. Successful completion of reviews, like this one, allows the program to state in each audit report that work conducted was in accordance with generally accepted government auditing standards. Each report meets the requirements for issues like auditor independence, due care, professional education, fieldwork, and audit reporting. I am always looking for ways to further improve. I am pleased to have your thoughtful comments about the areas where you found the program excels. It is important to the program that management respects and responds to findings presented in audit reports. It is interesting this program is one of the first one-person organizations to have undergone a peer review. I intend to continue to follow standards and have a peer review once every three years. I appreciate your observations and suggestions to further enhance the work being performed. I believe your recommendations will help the Internal Audit Program improve its operations and continue to ensure that appropriate standards are met. I am in agreement with your comments and plan to take action, as appropriate, to implement your suggestions. The following are specific responses to your comments. Page 1 of 2 Quality Services Performed with Pride Exhibit K Page of • Making reports available to the public - This recommendation will be brought to the Audit Committee and to County management. The County should consider placing a listing of the audits completed on the County's website as well as contact information for the Internal Auditor. Supporting documents - Finding development sheets are utilized on most audits. On smaller quick response audits, findings are accumulated directly to the draft report. This was done to be more efficient with time. I see, from your review, you appreciated the clarity from using finding development sheets in the workpapers. I will endeavor to use the findings sheets on these smaller audits to more effectively support report findings. Supporting documents -It is helpful to summarize key amounts especially when they are cited in audit reports. You indicated a couple of instances where these were not sufficiently referenced to detailed workpapers. I will continue to summarize key amounts and make efforts to improve references to detailed supporting workpapers. I extend my personal thanks to both of you for participating in the peer review process and your organizations for allowing you to take the time to review Deschutes County's Internal Audit Program. I also thank Mike Edmonds, with the City of San Jose, who helped coordinate this peer review on behalf of N.A.L.G.A. I found the review process to be a valuable and constructive process. I appreciate the review team's professionalism and thoroughness in conducting the review. I will share your report with the County Administrator, Audit Committee, Board of County Commissioners and make it available to the public and the media. Sincerely, David Givans, CPA County Internal Auditor Exhibit Page (Q of (p Page 2 of 2