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2012-1815-Minutes for Meeting September 24,2012 Recorded 10/18/2012COUNTY NANCYUBLANKENSHIP,F000NTY CLERKS COMMISSIONERS' JOURNAL 10/1812012 08;04;04 AM IIIIIIIIIIIIIIIIIIIIIIIIIII (III 2012-1815 Do not remove this page from original document. Deschutes County Clerk Certificate Page 6 Deschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, SEPTEMBER 24, 2012 Present were Commissioners Anthony DeBone, Alan Unger and Tammy Baney. Also present were Erik Kropp, Interim County Administrator; Marty Wynne, Finance; David Givans, Internal Auditor; Ed Keith, Forester; Hillary Sarceno, Children & Families' Commission; and Bill Davidson, CFC Advisory Board. One citizen was present for a brief time; no representatives of the media were in attendance. Chair DeBone opened the meeting at 1:30 p.m. 1. Finance/Tax Update. Mr. Wynne said that investment rates would stay low for a while, especially with new economic stimulus programs. Most investments are at 0.1 return, which is not good for those people who are living off investments. The County received the PILT payment, which was a lot more than the previous year. Room tax revenue is also up, which helps offset Sheriff's Office expenses. This has always been a part of general fund transfers. Health Benefits Trust Fund costs are high, but it is too soon to project this out long-term. Investment policy guidelines are up for renewal. Some language has been deleted that was redundant or no longer necessary. Commissioner Unger asked which banking organizations the County uses and for what purposes. Mr. Wynne said some collect revenue, and some are used for regular banking. All are reputable financial institutions. Credit unions are not shown because it is still not known if they can legally be utilized by governmental entities. There are only a few other counties in Oregon that are as highly rated as Deschutes County, and they are all the much larger counties. Mr. Wynne said that the bonding capacity of the County has not been affected by the recent Supreme Court stay that concerns Clackamas County. Minutes of Board of Commissioners' Work Session Monday, September 24, 2012 Page 1 of 7 UNGER: Move approval of the updated investment policy guidelines. BANEY: Second. VOTE: UNGER: Second BANEY: Yes. DEBONE: Chair votes yes. 2. Discussion regarding Title III Funds. Ed Keith gave an overview of the recent wildfires and the areas of concern. Most are under control or nearly so after a couple of weeks of extreme fires. Mr. Keith talked about funding sources for the Forester, Project Wildfire and Search & Rescue. Much of this comes from Title III funds, but the use of the funds has to be specified by the Board. Commissioner Unger said that last year he asked for funding for collaborative work and for weed control. Mr. Keith stated those dollars comes through Title II and is a separate process. Those are RAC funds and involve Forest Service properties or those adjacent to Forest Service lands. The amount for Title III is about $131,000, and he will discuss the breakdown with the Sheriff. He believes Search & Rescue would need about $40,000. They continue to pursue other grant opportunities. BANEY: Move approval of the distribution of Title II funds. UNGER: Second. VOTE: BANEY: Second UNGER: Yes. DEBONE: Chair votes yes. 3. Audit Committee Recommendations. David Givans said the Audit Committee has made recommendations to change the Internal Auditor section of Code. Commissioner Baney asked if this should be expedited. Mr. Kropp stated he does not support what is being recommended. Chair DeBone said he does not feel there is liability if things stay as they are. Mr. Givans stated that the idea was to get Board input. Minutes of Board of Commissioners' Work Session Monday, September 24, 2012 Page 2 of 7 Commissioner Unger said that the Audit Committee is engaged and active. The Auditor needs to be able to step back and look at things with a critical eye. He is not sure it is taking anything away from the County, but they were concerned about the Auditor being able to be fully independent. He is not sure why some don't feel this strengthens the Auditor position. Chair DeBone asked if they should meet with the Audit Committee. He disagrees with the conclusion, but others feel differently. Commissioner Baney prefers a meeting where she can learn more about the recommendations. Mr. Kropp said it would come to the Board in a public hearing, but any changes need to be decided so they can be brought forward for consideration. Commissioner Baney said she sees value in the perception, and perhaps the Auditor should report to the Board. Mr. Givans stated that they want the County Administrator to have to consult with the Board and have the Board take a vote in some instances. Mr. Kropp said this came out of peer review, which indicated several points should be clarified. Commissioner Unger said he is not against all of the changes, but want to review those that are of concern. The Board prefers to meet with members of the Audit Committee in the near future to discuss some items in more depth. 4. General Discussion about the Future of the Children & Families' Commission. Hillary Saraceno said there are changes occurring at the State level, from which about 20% of the CFC funding is derived. Operational staffing is a big part of this. She has met with Scott Johnson and the advisory committee to work on these issues. The goal is to get approval to begin working on some adjustments. They want to have a plan in place before the next budget cycle. The CFC fits in well as a partner with Health Services. At this point, they went over recommendations (a copy of which is attached). One thing that remains uncertain is the youth development council part of the equation. A centralized hub may not be what ultimately happens. Mr. Kropp said he wants to be sure the Board is aware of the changes, and to provide its input and guidance. Minutes of Board of Commissioners' Work Session Monday, September 24, 2012 Page 3 of 7 There are two sides of the issue: K-12 and higher education, and health reform. Statutes have language on both sides that the two systems can bring together. It is a philosophical change. Commissioner Baney asked where prevention comes in. Ms. Saraceno said it is integrated throughout, focusing on reading readiness and other core functions. They are trying to align functions of each organization. There are uncertainties concerning funding levels. On the local level, some functions are linked to public health, but various ideas are being explored. Scott Johnson said that there was a prevention office at one time. Part of the question will be how or whether to regionalize some of this work. There are also a few options available that could be developed this year. The alternative is to wait until the legislature does something that they the CFC and others will have to try to figure out at the local level. He prefers to be prepared as much as possible. Chair DeBone asked about the staffing level. Ms. Saraceno said the State provides about $900,000 or about 20% of the budget. The CFC has eight FTE. Forty percent comes from the County general fund, and 40% comes from grants. Through attrition, they will already be making some cuts. Chair DeBone said this fits into the Juvenile Justice discussion and prevention ideas. Mr. Johnson stated they have talked about youth development but he is not sure how much this ties in. Commissioner Baney said the highest investment is in the detention piece, and that was not the original intent. She sees good alignment being in place so they can get to where the CCO's want them to be. The partners will have to contribute, but there may need to be a plan that segregates at some point. One of the counties, Jefferson, has never embraced this view and does not seem to place the same value on it. Chair DeBone said that Jefferson County has offered to send all their juveniles here rather than to NorCor. Commissioner Baney stated that she hopes to never have to deal with this situation at this level. Mr. Kropp said they would have to pay for a percentage of the use and operations. Minutes of Board of Commissioners' Work Session Monday, September 24, 2012 Page 4 of 7 Commissioner Baney said that she would like to see this hub idea proceed with caution when working with the other two counties. Ms. Saraceno said that Jefferson County would not fund their position after this fiscal year; Crook County does mostly direct services, while Deschutes County relies on nonprofits for this type of work. She values the regional concept, but loyalty must be to Deschutes County and the overall goal. Commissioner Unger feels the County can be adaptive and should be able to keep the good work now being done on track. Mr. Davidson said the Advisory Board works off by-laws, and they are losing members. They want to continue their work in the meantime. He asked if they could hold their by-laws in abeyance and still continue work. They are supposed to be recruiting members but they don't have the details to provide to applicants. Commissioner Baney feels that they can't get below five members. Mr. Davidson stated they have eleven now, but some terms are expiring in December. Mr. Johnson stated that in a month or two there might be some staffing and financial recommendations for the Board to consider and things may be a bit more stable. Mr. Davidson feels that they feel the direction they are going is the right one. The biggest thing is making sure while the ELC develops that no gaps in service are left. That is the bottom line for the coalition. They don't know what is going to happen on the legislative side of things, and hope things are not moving along too fast. Ms. Saraceno said that they are participating in a kickoff of the "Keep Kids Safe" license plate launch in Salem. Mr. Davidson said he appreciates the thought and work going into the jail and juvenile detention issues, and that they want to keep prevention in the loop. He suggested they amortize out what is built or used over a period of years. Prevention is an important part of this. The meeting recessed at 3:15 p.m., at which time the Board went into executive session under ORS 192.660(2)(h), pending or threatened litigation. The following action was taken after executive session. Minutes of Board of Commissioners' Work Session Monday, September 24, 2012 Page 5 of 7 UNGER: Based on a discussion in executive session, move approval of a consent to waive a potential conflict of interest regarding the law firm of Harrang Long representing Pronghorn interests, but that Harrang Long is also representing the County on various issues. This is subject to legal counsel review of the waiver document, and Mark Pilliod is authorized to sign said document. BANEY: Second. VOTE: UNGER: Yes. BANEY: Yes. DEBONE: Chair votes yes. In view of community air quality concerns due to recent wildfires, the Health Department has indicated there is some emergency health funding available to help install air filters in Sisters schools. Funds would go to the Clean Air Fund at the Bank of the Cascades. UNGER: Move approval of this disbursement. DEBONE: Second. VOTE: UNGER: Yes. BANEY: Yes. DEBONE: Chair votes yes. At the regional AOC meeting, there was a fair amount of discussion, primarily with Harney and Crook counties, regarding concerns about juvenile detention and long-term needs. Mr. Kropp stated this would not be shared governance. Commissioner Baney added that the County might determine what was discussed is not the best path to take. What the other agencies need is the initial intake, but they may be using NorCor for the rest. Chair DeBone said there was discussion regarding having the AOC annual conference somewhere other than in the valley during non-election years. At the meeting, about a half-hour was spent talking about the CCO's - Coordinated Care Organizations. Minutes of Board of Commissioners' Work Session Monday, September 24, 2012 Page 6 of 7 Commissioner Baney said she was approached regarding the designation of the part of Highway 97 through the City of La Pine as Ashton Eaton Boulevard. The `Boulevard' designation is an issue for ODOT. The City can work with the Post Office to change the name any way that they want, but some at the City want the County to rename this section on County maps as well. ODOT will not officially change this on their maps or other documents, but may allow additional signage. This is because the person is still living, and many communities would want a similar type of change to honor local heroes or others. Overall, this could be very confusing to the public and visitors. Mr. Kropp stated he would find out from Road, 911, Community Development and the Sheriff how this might affect their operations. Commissioner Baney has been asked to be vice chair of the Next Generation Committee of NACo. The mission is to engage members throughout the nation that are county officials under the age of fifty. It would require her to attend several conferences. She intends to go to NACo as usual. The Commissioners decided the travel costs of this new membership could not be supported by the budget. Being no further discussion, the meeting adjourned at 4:45 p.m. DATED this Day of -0eA4q11,-- 2012 for the Deschutes County Board of Commissioners. Anthony DeBone, Chair 0 d."- UWjz4-- ATTEST: &b-.4,- Recording Secretary Alan Unger, Vice Chair Tammy ey, om issioner Minutes of Board of Commissioners' Work Session Page 7 of 7 Monday, September 24, 2012 N N N OJ I j i a c.0o I C O ~ ~ I I I I ~ I I I i GJ O , ~9 I i I I I i I I I i I i ' I I l C OJ I 'Q' i ' I ~ I i I I i i .C I H H -ld ~ M~ z I I ° O ztt N CL Monthly Meeting with Board of Commissioners Finance Director/Treasurer AGENDA September 24, 2012 (1) Monthly Investment Report (2) August 2012 Financials (3) Approval of the Investment Policy Guidelines n n o v vrn n m M O Q1 ai L6 r M r v M ~ C N v = m ~ C9 } N N a m ~ C4 M O U. ' a aci cm r.- as 3 Q N N N N 1- r O a 3 N N Z U. , w c c O m o u N iA C > O m m = U = m - a N m 1OJ C IA O > ~ > ~ 10- q C7 ®r Y i C M O r ~ N M ' 14. ' m ' (O n ~ a C4 a N ci C7 p C tl d O N 140 to j 'A 4,, 'A C aZS ~ 01 °Qa~ w wUF= c?LZ mm c E - O a. 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CL ~,z C~'C91CD:2~ U a ~Icn1u) l~a~lU~Z),LLi aI W ~ m ~m 1 Memorandum Date: September 17, 2012 To: Board of County Commissioners Erik Kropp, Interim County Administrator From: Marty Wynne, Finance Director RE: Monthly Financial Reports Attached please find August 2012 financial reports for the following funds: General (001), Community Justice - Juvenile (230), Sheriff's (255, 701, 702), Public Health (259), Behavioral Health (275), Community Development (295), Road (325), Community Justice - Adult (355), Commission on Children & Families (370- 399), Solid Waste (610), Insurance Fund (670), 9-1-1 (705), Health Benefits Trust (675), and Fair & Expo Center (618). The projected information has been reviewed and updated, where appropriate, by the respective departments. Cc: All Department Heads GENERAL FUND Statement of Financial Operating Data Two Months Ended August 31, 2012 RESOURCES: Beg. Net Working Capital Revenues Current & Prior Taxes Gen. Rev. - excl. Taxes Assessor County Clerk BOPTA District Attorney Finance/Tax Veterans Property Management Grant Projects Total Revenues Year to Date Budget Actual Variance FY % CO. % $ 8,700,000 $ 9,046,110 $ 346,110 100% 104% L FY 2013 Year End $ Bud et Proiection Variance $ 8,700,000 $ 9,046,110 $ 346,110 TOTAL RESOURCES REQUIREMENTS: Expenditures Assessor County Clerk BOPTA District Attorney Finance/Tax Veterans Property Management Grant Projects Non-Departmental Contingency Transfers Out TOTAL REQUIREMENTS NET (Resources - Requirements) 3,479,527 384,920 (3,094,607) 17% 2% a) 20,877,160 20,877,160 - 396,955 853,758 456,803 17% 36% b) 2,381,731 2,381,731 - 124,771 204,978 80,207 17% 27% c) 748,626 748,626 - 230,004 277,439 47,435 17% 20% 1,380,023 1,380,023 - 2,066 4,117 2,051 17% 33% c) 12,398 12,398 - 30,782 12,814 (17,968) 17% 7% 184,694 184,694 - 33,150 72,398 39,248 17% 36% c) 198,900 198,900 - 11,400 150 (11,250) 17% 0% d) 68,400 68,400 - 16,541 15,707 (834) 17% 16% 99,244 99,244 - 333 333 0 17% 17% 2,000 2,000 - 4,325,529 1,826,614 (2,498,915) 17% 7% 25,953,176 25,953,176 - 13,025,529 10,872,724 (2,152,805) 17% 31% 34,653,176 34,999,286 346,110 Exp. 590,205 528,720 61,485 17% 15% 3,541,227 3,541,227 - 244,606 174,673 69,933 17% 12% 1,467,638 1,467,638 - 12,064 11,856 208 17% 16% 72,385 72,385 - 879,111 813,207 65,904 17% 15% 5,274,667 5,274,667 - 138,978 127,708 11,270 17% 15% 833,865 833,865 - 43,499 39,296 4,203 17% 15% 260,992 260,992 - 45,338 43,854 1,484 17% 16% 272,027 272,027 - 20,392 19,607 785 17% 16% 122,349 122,349 - 270,779 152,326 118,453 17% 9% e) 1,624,671 1,624,671 - 1,354,451 1,354,451 17% n/a 8,126,703 - 8,126,703 3,599,423 1,911,248 1,688,175 17% 9% 21,596,524 13,469,821 8,126,703 2,176,109 2,080,747 95,363 17% 16% 13,056,652 13,056,652 - 5,775,532 3,991,994 1,783,538 17% 12% 34,653,176 26,526,473 8,126,703 7,249,998 6,880,730 (369,267) - 8,472,813 8,472,813 a) Current year taxes not due until November b) Includes annual payments: PILT $730,983 c) A & T Grant received quarterly-July, October, January & April d) State payment received quarterly e) Budget includes $576,736 payment to LED#2. Will not be expended until June 2013 Page 1 COMM JUSTICE-JUVENILE Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Year End Budget Actual Variance FY % Coll. % Budget Projection Variance RESOURCES: Beg. Net Working Capital $1,010,415 $ 995,051 $ (15,364) 100% 98% $1,010,415 $ 995,051 $ (15,364) Revenues Federal Grants 1,000 - (1,000) 17% 0% 6,000 6,000 - SB #1065-Court Assess. 8,333 3,279 (5,054) 17% 7% 50,000 50,000 - Discovery Fee 2,167 1,810 (357) 17% 14% 13,000 13,000 - Food Subsidy 3,500 2,220 (1,280) 17% 11% 21,000 21,000 - OYA Basic & Diversion 62,558 - (62,558) 17% 0% a) 375,347 375,347 - Inmate/Prisoner Housing 10,000 23,400 13,400 17% 39% b) 60,000 85,000 25,000 Inmate Commissary Fees 17 - (17) 17% 0% 100 100 - Contract Payments 20,333 4,466 (15,868) 17% 4% c) 122,000 122,000 - Miscellaneous 33 - (33) 17% 0% 200 200 - Program Fees 8 - (8) 17% 0% 50 50 - MIP Diversion Fees 167 225 58 17% 23% 1,000 1,000 - Interest on Investments 1,333 1,155 (178) 17% 14% 8,000 8,000 - Leases 200 300 100 17% 25% 1,200 1,200 - Grants - Private 83 719 636 17% 144% b) 500 1,100 600 CFC Interfund Grant 20,944 - (20,944) 17% 0% d) 125,661 125,661 - Interfund Grant - Gen Fund 3,333 - (3,333) 17% 0% d) 20,000 20,000 - Total Revenues 134,009 37,573 (96,436) 17% 5% 804,058 829,658 25,600 Transfers In-General Fund 890,754 890,754 - 17% TOTAL RESOURCES 2,035,178 1,923,378 (111,800) 17% REQUIREMENTS: Expenditures Community Justice-Juvenile Personal Services Materials and Services Capital Outlay Transfers Out Contingency TOTAL REQUIREMENTS NET (Resources - Requirements) 17% 5,344,523 5,344,523 - 27% 7,158,996 7,169,232 10,236 Exp. 845,836 834,035 11,801 17% 16% 5,075,017 5,075,017 - 198,993 151,353 47,640 17% 13% 1,193,960 1,193,960 - 17 - 17 17% 0% 100 100 - 8,400 - 8,400 17% 0% 50,400 50,400 - 139,920 - 139,920 17% n/a 839,519 - 839,519 1,193,166 985,389 207,777 17% 14% 7,158,996 6,319,477 839,519 842,012 937,989 95,977 - 849,755 849,755 a) Payments received quarterly b) Revenues trending higher than anticipated c) Contract payment reimbursement requests submitted monthly, receive 1-2 months in arrears d) Grants received quarterly Page 2 SHERIFF - Fund 255 Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date 2013 F Year End Budget Actual Variance FY % Coll. % Bu d get Projection Variance RESOURCES: Beg. Net Working Capital $ - $ - $ - 100% n/a $ - $ $ _ Revenues Law Enf Dist Countywide 3,760,271 3,059,415 (700,856) 17% 14% 22,561,626 18,951,537 (3,610,089) 17% 14% Total Revenues 6,167,220 5,141,191 (1,026,029) 17% 14% 37,003,318 31,337,723 (5,665,595) TOTAL RESOURCES 6,167,220 5,141,191 (1,026,029) 17% 14% 37,003,318 31,337,723 (5,665,595) REQUIREMENTS: Exp. -0/61 EXPENDITURES & TRANSFERS Sheriffs Division 377,272 414,375 (37,103) 17% 18% 2,263,630 2,263,530 100 Civil 133,165 108,228 24,937 17% 14% 798,989 798,889 100 Automotive/Communications 300,104 490,298 (190,194) 17% 27% a) 1,800,625 1,805,150 (4,525) Investigations/Evidence 251,363 255,378 (4,015) 17% 17% 1,508,180 1,508,080 100 Patrol/Civil/Comm Supp 1,378,226 1,288,733 89,493 17% 16% b) 8,269,358 8,219,358 50,000 Records 119,603 96,136 23,467 17% 13% 717,617 717,517 100 Adult Jail 1,723,679 1,584,481 139,198 17% 15% b) 10,342,072 10,292,072 50,000 Court Security 50,500 48,795 1,705 17% 16% 303,001 302,901 100 Emergency Services 32,422 31,163 1,259 17% 16% 194,533 194,433 100 Special Services Division 223,218 228,607 (5,389) 17% 17% 1,339,308 1,339,308 - Regional Work Center 443,846 405,657 38,189 17% 15% 2,663,078 2,662,978 100 Training Division 84,158 69,431 14,727 17% 14% 504,950 504,850 100 Other Law Enforcement' Svcs 107,251 105,701 1,550 17% 16% 643,504 643,404 100 Non-Departmental 14,209 14,209 0 17% 17% 85,253 85,253 - Contingency 928,203 - 928,203 17% n/a 5,569,220 - 5,569,220 TOTAL REQUIREMENTS 6,167,219 5,141,191 1,026,028 17% 14% 37,003,318 31,337,723 5,665,595 NET (Resources - Requirements) _ * Revenues from LED #1 & LED #2 adjusted monthly to equal actual expendi tures a) FY 2013 appropriated amount, $360,690 for payment Deschutes County C ommuni cation System Fund expended in July 2012 b) Projected variance due to delays in filling open positions Page 3 Fund 701 LED-Countywide Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Year End Budget Actual Variance FY % Coll. % I Budget I Projection I Variance RESOURCES: Beg. Net Working Capital $4,507,352 $ 5,883,963 $ 1,376,611 100% 131% $ 4,507,352 $5,883,963 $ 1,376,611 Tax Revenues - Current 2,564,290 - (2,564,290) 17% 0% a) 15,385,740 15,385,740 - Tax Revenues - Prior 73,333 283,458 210,125 17% 64% 440,000 440,000 - Federal Grants & Reimb 5,000 - (5,000) 17% 0% 30,000 30,000 - State Grant 12,333 9,080 (3,253) 17% 12% 74,000 74,000 - Transp. of State Wards 833 - (833) 17% 0% 5,000 5,000 - SB 1145 246,665 369,998 123,333 17% 25% 1,479,991 1,479,991 - Prisoner Housing 8,333 - (8,333) 17% 0% 50,000 50,000 - Des. Cty Video Lottery Grant 833 5,000 4,167 17% 100% 5,000 5,000 - Des Cty Court Security 40,167 40,018 (149) 17% 17% 241,000 241,000 - Des Cty Juvenile Contract 697 - (697) 17% 0% 4,180 4,180 - Transport 83 410 327 17% 82% 500 500 - Other 583 6,500 5,917 17% 186% 3,500 6,500 3,000 DC Fair & Expo Center 667 756 89 17% 19% 4,000 4,000 - Inmate Commissary Fees 1,667 1,518 (149) 17% 15% 10,000 10,000 - Work Center Work Crews 8,333 1,055 (7,278) 17% 2% 50,000 50,000 - Concealed Handgun Classes 583 850 267 17% 24% 3,500 3,500 - Inmate Telephone Fee 13,333 5,710 (7,623) 17% 7% 80,000 80,000 - Soc Sec Incentive-Fed 833 1,000 167 17% 20% 5,000 5,000 - Miscellaneous 833 1,432 599 17% 29% 5,000 5,000 - Oregon Mentors 167 - (167) 17% 0% 1,000 1,000 - Debit Card Fee 17 71 54 17% 71% 100 100 - Medical Services Reimb 2,167 259 (1,908) 17% 2% 13,000 13,000 - Restitution 833 - (833) 17% 0% 5,000 5,000 - Sheriff Fees 41,667 42,834 1,167 17% 17% 250,000 250,000 - Interest 4,722 5,441 719 17% 19% 28,333 28,333 - Interest on Unsegregated 589 67 (522) 17% 2% 3,533 3,533 - Donations - "Shop with a Cop" 8,650 11,288 2,638 17% 22% 51,897 51,897 - Sale of Reportable Assets 833 - (833) 17% 0% 5,000 5,000 - Total Revenues 3,039,044 786,746 (2,252,298) 17% 4% 18,234,274 18,237,274 3,000 TOTAL RESOURCES 7,546,396 6,670,709 (875,687) 17% 29% 22,741,626 24,121,237 1,379,611 REQUIREMENTS: Exp. Fund 255 Departments: Sheriffs Services 352,210 386,848 (34,639) 17% 18% 2,113,257 2,113,164 93 Civil 133,165 108,228 24,937 17% 14% 798,989 798,889 100 Auto/Comm 110,663 180,797 (70,134) 17% 27% 663,980 665,649 (1,669) Adult Jail 1,723,679 1,584,481 139,197 17% 15% 10,342,072 10,292,072 50,000 Court Security 50,500 48,795 1,705 17% 16% 303,001 302,901 100 Emergency Services 32,422 31,163 1,259 17% 16% 194,533 194,433 100 Special Services 154,453 158,182 (3,729) 17% 17% 926,721 926,721 - Work Center 443,846 405,657 38,190 17% 15% 2,663,078 2,662,978 100 Training 51,446 42,443 9,003 17% 14% 308,676 308,615 61 Other (CODE, Forensic) 107,251 105,701 1,550 17% 16% 643,504 643,404 100 Non Dept - ISF Charges 7,119 7,119 (0) 17% 17% 42,712 42,712 - Contingency 593,517 - 593,517 17% n/a 3,561,103 - 3,561,103 Total to Fund 255 3,760,271 3,059,415 700,856 22,561,626 18,951,537 3,610,089 Transfer to Reserve Fund (703) 16,667 - 16,667 17% 0% 100,000 100,000 - Non Dept - Comm System Res 13,333 - 13,333 17% 0% 80,000 80,000 - Total Requirements 3,790,271 3,059,415 730,855 17% 13% 22,741,626 19,131,537 3,610,089 Net 3,756,125 3,611,294 (144,831) - 4,989,699 4,989,699 a) Current year taxes not due until November " Payment to Sheriffs Fund adjusted monthly to equal actual expenditures attributable to countywide services. Page 4 Fund 702 LED Rural Statement of Financial Operating Data Two Months Ended August 31, 2012 RESOURCES: Beg. Net Working Capital Revenues Tax Revenues - Current Tax Revenues - Prior Federal Grants & Reimb Federal Grants-BLM US Forest Service Bureau of Reclamation State Grant SB #1065 Court Assessment Marine Board License Fee Des Cty General Fund Grant Des Cty Transient Room Tax Des Cty Tax Office Contract City of Sisters Des Cty CDD Contract Des Cty Solid Waste Contr Des Cty Clerk/Election School Districts Security & Traffic Reimb Seat Belt Program Miscellaneous False Alarm Fees Restitution Sheriff Fees Court Fines & Fees Impound Fees Restitution - Street Crimes Seizure/Forfeiture Interest Interest on Unsegregated Donations Sale of Equip & Material Sale of Reportable Assets Total Revenues TOTAL RESOURCES Year to Date FY 2013 Year End Budget Actual Variance FY % Coll. % Bud et Projection Variance $ 2,859,915 $ 3,244,571 $ 384,656 100% 113% $ 2,859,915 $ 3,244,571 $ 384,656 1,258,333 - (1,258,333) 38 , 333 139,318 100,985 2,500 - (2,500) 4,333 - (4,333) 12,500 - (12,500) 4,333 (0) (4,333) 31,532 24,751 (6,781) 9,167 3,279 (5,888) 23,682 - (23,682) 96,123 - (96,123) 345,544 345,544 0 83 - (83) 77,993 77,993 0 9,061 9,061 - 9,061 9,061 - 167 - (167) 6,667 - (6,667) 833 - (833) 1,667 630 (1,037) 1,000 3,506 2,506 333 400 67 833 25 (808) 1,667 2,028 361 20,000 19,795 (205) 667 1,300 633 83 - (83) 167 - (167) 1,667 2,409 742 300 34 (266) - 2,500 2,500 1,667 33 (1,634) 6,667 - (6,667) 17% 0% a) 7,550,000 7,550,000 - 17% 61% 230,000 230,000 - 17% 0% 15,000 15,000 - 17% 0% 26,000 26,000 - 17% 0% 75,000 75,000 - 17% 0% 26,000 26,000 - 17% 13% 189,194 189,194 - 17% 6% 55,000 55,000 - 17% 0% 142,091 142,091 - 17% 0% 576,735 576,735 - 17% 17% 2,073,265 2,073,265 - 17% 0% 500 500 - 17% 17% 467,960 467,960 - 17% 17% 54,366 54,366 - 17% 17% 54,366 54,366 - 17% 0% 1,000 1,000 - 17% 0% 40,000 40,000 - 17% 0% 5,000 5,000 - 17% 6% 10,000 10,000 - 17% 58% 6,000 6,000 - 17% 20% 2,000 2,000 - 17% 1% 5,000 5,000 - 17% 20% 10,000 10,000 - 17% 16% 120,000 120,000 - 17% 33% 4,000 4,000 - 17% 0% 500 500 - 17% 0% 1,000 1,000 - 17% 24% 10,000 10,000 - 17% 2% 1,800 1,800 - 17% n/a - 2,500 2,500 17% 0% 10,000 10,000 - 17% 0% 40,000 40,000 - 1,966,963 641,666 (1,325,297) 4,826,878 3,886,237 (940,641) 50% 5% 11,801,777 11,804,277 2,500 50% 27% 14,661,692 15,048,848 387,156 REQUIREMENTS: Exp. Fund 255 Departments: Sheriffs Services 25,062 27,527 (2,465) 17% 18% 150,373 150,366 7 Auto/Comm 189,441 309,500 (120,060) 17% 27% 1,136,645 1,139,501 (2,856) Investigations 251,363 255,378 (4,014) 17% 17% 1,508,180 1,508,080 100 Patrol 1,378,226 1,288,733 89,494 17% 16% 8,269,358 8,219,358 50,000 Records 119,603 96,136 23,467 17% 13% 717,617 717,517 100 Special Services 68,765 70,425 (1,660) 17% 17% 412,587 412,587 - Training 32,712 26,988 5,724 17% 14% 196,274 196,235 39 Non Dept - ISF Charges 7,090 7,090 (0) 17% 17% 42,541 42,541 - Contingency 334,686 - 334,686 17% n/a 2,008,117 - 2,008,117 Transfer to Reserve Fund (704) 16,667 - 16,667 17% 0% 100,000 100,000 - Non Dept - Comm System Res 20,000 - 20,000 17% 0% 120,000 120,000 - Total Requirements 2,443,615 2,081,776 361,839 17% 14% 14,661,692 12,606,186 2,055,506 Net 2,383,263 1,804,461 (578,802) - 2,442,662 2,442,662 a) Current year taxes not due until November Page 5 Payment to Sheriffs Fund adjusted monthly to equal actual expenditures attributable to rural services. PUBLIC HEALTH Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Year End I Budget Actual Variance FY % I Coll. % Budget I Projection Variance RESOURCES: Beg. Net Working Capital $1,336,051 $ 1,327,199 $ (8,852) 100% 99% $1,336,051 $1,327,199 $ (8,852) Revenues Medicare Reimbursement 167 - (167) 17% 0% 1,000 1,000 - Federal Grant - 5,000 5,000 17% n/a - 5,000 5,000 Federal Grant (ARRA) 33,333 - (33,333) 17% 0% 200,000 200,000 - State Grant 435,861 - (435,861) 17% 0% a) 2,615,168 2,615,168 - Child Dev & Rehab Center 6,602 - (6,602) 17% 0% 39,609 39,609 - State Miscellaneous 22,457 2,908 (19,549) 17% 2% 134,740 134,740 - OMAP 104,598 47,942 (56,656) 17% 8% 627,588 627,588 - Title 19 59 - (59) 17% n/a 352 352 - Family Planning Exp Proj 91,667 8,482 (83,185) 17% 2% 550,000 550,000 - Local Grants 22,802 - (22,802) 17% 0% 136,810 136,810 - Environmental Health-Water 15,367 - (15,367) 17% 0% 92,200 92,200 - Contract Payments - 10,000 10,000 17% n/a - 10,000 10,000 Miscellaneous - 700 700 17% n/a - 700 700 Patient Insurance Fees 32,200 16,412 (15,788) 17% 8% 193,200 193,200 - Health Dept/Patient Fees 17,183 13,146 (4,037) 17% 13% 103,100 103,100 - Vital Records-Birth 6,833 7,340 507 17% 18% 41,000 41,000 - Vital Records-Death 16,667 17,650 983 17% 18% 100,000 100,000 - Environmental Health-Lic Fac 120,008 42,916 (77,092) 17% 6% 720,050 720,050 - Interest on Investments 2,000 1,053 (947) 17% 9% 12,000 12,000 - Donations 883 17,401 16,518 17% 328% 5,300 22,277 16,977 Interfund Contract 26,438 - (26,438) 17% 0% 158,629 158,629 - Administrative Fee 133 133 0 17% 17% 800 800 - Total Revenues 955,258 191,083 (764,175) 17% 3% 5,731,546 5,764,223 32,677 Transfers In-General Fund 391,560 391,560 - 17% 17% 2,349,357 2,349,357 - Transfers In-PH Res Fund 10,023 - (10,023) 17% 0% 60,136 60,136 - Transfers In-Gen. Fund Other 10,850 - (10,850) 17% 0% 65,100 65,100 - TOTAL RESOURCES 2,703,742 1,909,842 (793,900) 17% 20% 9,542,190 9,566,015 23,825 REQUIREMENTS: Expenditures Personal Services Materials and Services Capital Outlay Transfers Out Contingency TOTAL REQUIREMENTS Exp. 1,057,939 1,012,625 45,314 17% 16% 6,347,635 6,347,635 - 319,537 249,099 70,438 17% 13% 1,917,220 1,917,220 - 10,833 - 10,833 17% 0% b) 65,000 - 65,000 26,200 - 26,200 17% 0% 157,200 157,200 - 175,856 - 175,856 17% n/a 1,055,135 - 1,055,135 1,590,365 1,261,724 328,641 17% 13% 9,542,190 8,422,055 1,120,135 NET (Resources - Requirements) 1,113,377 648,119 (465,258) - 1,143,960 1,143,960 a) State grant for July will be received in September. Payment is pending until after the grant award is executed b) Capital Outlay expense for the OCHIN System expended in FY 2012 Page 6 BEHAVIORAL HEALTH Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Year End Budget Actual Variance FY % Coll. % Budget Project ion Variance RESOURCES: Beg. Net Working Capital $ 3,320,968 $ 3,113,095 $ (207,873) 100% 940/6 $ 3,320,968 $ 3,113,095 $ (207,873) Revenues Marriage Licenses 1,083 1,915 832 17% 29% 6,500 6,500 - Divorce Filing Fees 26,667 20,642 (6,025) 17% 13% 160,000 160,000 - Domestic Partnership Fee 8 30 22 17% 67% 45 100 55 Federal Grants 42,058 - (42,058) 17% 0% a) 252,349 252,349 - Federal Grant (ARRA) 10,625 - (10,625) 17% 0% 63,750 63,750 - State Grants 1,288,433 243,256 (1,045,177) 17% 3% 7,730,599 7,730,599 - State Miscellaneous 10,310 - (10,310) 17% 0% 61,860 61,860 - Adult Mental Health Initiative 33,333 - (33,333) 17% 0% 200,000 200,000 - Title 19 44,908 27,151 (17,757) 17% 10% 269,446 269,446 - Liquor Revenue 23,583 23,854 271 17% 17% 141,500 141,500 - School Districts 11,500 - (11,500) 17% 0% 69,000 69,000 - Miscellaneous - 495 495 17% n/a - 5,000 5,000 Patient Insurance Fees 14,589 20,532 5,943 17% 23% 87,532 87,532 - Patient Fees 158 255 97 17% 27% 950 950 - Interest on Investments 4,167 3,500 (667) 17% 14% 25,000 25,000 - Rentals 3,083 1,000 (2,083) 17% 5% 18,500 18,500 - Administrative Fee 882,088 862,088 (20,000) 17% 16% 5,292,527 5,292,527 - Interfund Contract-Gen Fund 21,167 - (21,167) 17% 0% a) 127,000 127,000 - Total Revenues 2,417,760 1,204,718 (1,213,042) 17% 8% 14,506,558 14,511,613 5,055 Transfers In-General Fund 217,965 217,965 - 17% 17% 1,307,787 1,307,787 - Transfers In-OHP-CDO 80,749 80,749 - 17% 17% 484,494 484,494 - Transfers In-Acute Care Svcs 44,106 44,106 - 17% 17% 264,631 264,631 - Transfers In-ABHA 87,340 87,340 - 17% 17% 524,039 524,039 - TOTAL RESOURCES 6,168,888 4,747,972 (1,420,915) 17% 23% 20,408,477 20,205,659 (202,818) REQUIREMENTS: Exp. Expenditures Personal Services 1,874,581 1,795,357 79,224 17% 16% 11,247,487 11,247,487 - Materials and Services 1,099,039 556,797 542,242 17% 8% 6,594,235 6,594,235 - Capital Outlay 17 - 17 17% 0% 100 - 100 Transfers Out 34,000 - 34,000 17% 0% 204,000 204,000 - Contingency 393,776 - 393,776 17% n/a 2,362,655 - 2,362,655 TOTAL REQUIREMENTS 3,401,413 2,352,154 1,049,259 17% 12% 20,408,477 18,045,722 2,362,755 NET (Resources - Requirements) 2,767,475 2,395,818 (371,656) - 2,159,937 2,159,937 a) Received quarterly, in arrears Page 7 COMMUNITY DEVELOPMENT Statement of Financial Operating Data Two Months Ended August 31, 2012 RESOURCES: Beg. Net Working Capital Revenues Admin-Operations Admin-GIS Admin-Code Enforcement Building Safety Electrical Contract Services Env Health-On Site Prog Planning-Current Planning-Long Range Total Revenues Transfers In General Fund - Gen Ops General Fund - UR Planning A&T Reserve (D/S assistance) Other TOTAL RESOURCES Year to Date FY 2013 Year End Budget Actual Variance FY % Coll. % Budget Projection Variance $ 10,000 192,482 $ 182,482 100% 1925% $ 10,000 $ 192,482 182,482 3,682 6,971 3,289 17% 32% 22,090 22,090 - 208 290 82 17% 23% 1,250 1,250 - 27,700 35,460 7,760 17% 21% 166,200 166,200 - 212,263 228,331 16,068 17% 18% 1,273,575 1,273,575 - 42,667 62,459 19,792 17% 24% 256,000 256,000 - 18,600 16,624 (1,976) 17% 15% a) 111,600 111,600 - 52,162 57,290 5,128 17% 18% 312,971 312,971 - 106,225 109,735 3,510 17% 17% 637,350 637,350 - 37,737 47,286 9,549 17% 21% 226,421 226,421 - 501,244 564,446 63,202 17% 19% 3,007,457 3,007,457 - 142,478 142,478 - 17% 17% 854,872 854,872 - 82,560 82,560 - 17% 17% 495,360 495,360 - 14,930 - (14,930) 17% 0% 89,577 89,577 - 17 - (17) 17% 0% 100 - (100) 751,229 981,966 230,737 17% 22% 4,457,366 4,639,748 182,382 REQUIREMENTS: EXPENDITURES & TRANSFERS Admin-Operations 225,532 228,620 (3,088) Admin-GIS 19,630 19,004 626 Admin-Code Enforcement 38,154 35,661 2,493 Building Safety 103,515 100,705 2,810 Electrical 33,872 31,141 2,731 Contract Services 23,624 22,520 1,104 Env Health-On Site Pgm 26,606 24,954 1,652 Planning-Current 107,053 97,271 9,782 Planning-Long Range 77,234 65,511 11,723 Transfers Out (D/S Fund) 29,859 - 29,859 Contingency 57,817 - 57,817 Exp. 17% 17% 1,353,189 1,353,189 - 17% 16% 117,778 117,778 - 17% 16% 228,925 228,925 - 17% 16% 621,087 621,087 - 17% 15% 203,231 203,231 - 17% 16% 141,745 141,745 - 17% 16% 159,636 159,636 - 17% 15% 642,315 642,315 - 17% 14% 463,401 463,401 - 17% 0% 179,155 179,155 - 17% n/a 346,904 - 346,904 TOTAL REQUIREMENTS 742,896 625,387 117,509 17% 14% NET (Resources - Requirements) 8,333 356,579 348,246 Revenues 564,446 Expenditures 625,387 Net from Operations (60,941) a) Revenue typically lags 1-2 months behind due to billing cycles 4,457,366 4,110,462 346,904 529,286 529,286 3,007,457 3,007,457 - 4,457,366 4,110,462 346,904 (1,449,909) (1,103,005) 346,904 Page 8 ROAD Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Year End Budget Actual Variance FY% Col% Budget Projection Variance RESOURCES: Beg. Net Working Capital $ 4,719,551 $ 4,940,444 $ 220,893 100% 105% $ 4,719,551 $ 4,940,444 $ 220,893 Revenues System Development Charge - 693 693 17% n/a - 693 693 Federal Grant (ARRA) 1,167 - (1,167) 17% 0% 7,000 7,000 - Mineral Lease Royalties 6,667 4,151 (2,516) 17% 10% 40,000 40,000 - Forest Receipts 66,138 - (66,138) 17% 0% a) 396,826 396,826 - State Miscellaneous 90,382 - (90,382) 17% 0% b) 542,290 542,290 - Motor Vehicle Revenue 1,798,341 1,626,947 (171,394) 17% 15% 10,790,043 10,790,043 - City of Bend 4,167 - (4,167) 17% 0% c) 25,000 25,000 - City of Redmond 58,333 - (58,333) 17% 0% c) 350,000 350,000 - City of Sisters 1,667 - (1,667) 17% 0% c) 10,000 10,000 - City of La Pine 1,667 - (1,667) 17% 0% c) 10,000 10,000 - Admin Recovery (SDC) - 722 722 17% n/a - 1,000 1,000 Miscellaneous 3,333 1,915 (1,418) 17% 10% 20,000 20,000 - Road Vacations 167 - (167) 17% 0% 1,000 1,000 - Interest on Investments 2,500 5,366 2,866 17% 36% 15,000 15,000 - Interfund Contract 115,000 - (115,000) 17% 0% d) 690,000 690,000 - Equipment Repairs 36,667 18,826 (17,841) 17% 9% 220,000 220,000 - Vehicle Repairs 15,000 - (15,000) 17% 0% d) 90,000 90,000 - LID Construction 1,667 - (1,667) 17% 0% d) 10,000 10,000 - Vegetation Management 4,167 - (4,167) 17% 0% d) 25,000 25,000 - Forester 4,167 - (4,167) 17% 0% d) 25,000 25,000 - Car Washes 667 - (667) 17% 0% 4,000 4,000 - Car Rental 167 - (167) 17% 0% 1,000 1,000 - Sale of Equip & Material 120,600 6,931 (113,669) 17% 1% 723,600 723,600 - Total Revenues 2,332,631 1,665,551 (667,080) 17% 12% 13,995,759 13,997,452 1,693 Trans In - Solid Waste 46,045 - (46,045) 17% 0% e) 276,272 276,272 - Trans In - Transp SDC 41,667 - (41,667) 17% 0% e) 250,000 250,000 - Trans In-Road Imp Res 2,000 - (2,000) 17% 0% d) 12,000 12,000 - TOTAL RESOURCES 7,141,894 6,605,995 (494,232) 17% 37% 19,253,582 19,476,168 222,586 REQUIREMENTS: Exp. °i° Expenditures Personal Services 894,200 896,407 (2,207) 17% 17% 5,365,202 5,365,202 - Materials and Services 1,573,110 2,137,965 (564,855) 17% 23% 0 9,438,662 9,438,662 - Capital Outlay 339,550 6,684 332,866 17% 0% 2,037,300 2,037,300 - Transfers Out 45,833 - 45,833 17% 0% 275,000 275,000 - Contingency 356,236 - 356,236 17% n/a 2,137,418 - 2,137,418 TOTAL REQUIREMENTS 3,208,929 3,041,056 167,873 17% 16% 19,253,582 17,116,164 2,137,418 NET (Resources - Requirements) 3,932,965 3,564,939 (326,359) - 2,360,004 2,360,004 a) Payment received annually in January b) Payment expected in November c) Billed upon completion of work d) Payments to be received in June 2013 from other Road Department funds e) Payments made quarterly Page 9 f) Expenditures are seasonal and higher during summer months ADULT PAROLE & PROBATION Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Year End Budget Actual Variance FY % Coll. % Budget Projection Variance RESOURCES: Beg. Net Working Capital $ 570,000 $ 630,226 $ 60,226 100% 111% $ 570,000 $ 630,226 $ 60,226 Revenues DOC Measure 57 36,540 - (36,540) 17% 0% a) 219,240 219,240 - State Miscellaneous 717 - (717) 17% 0% b) 4,301 4,301 - Alternate Incarceration 2,500 - (2,500) 17% 0% c) 15,000 15,000 - State Subsidy 2,304 3,457 1,153 17% 25% 13,826 13,826 - SB 1145 458,092 687,139 229,047 17% 25% 2,748,556 2,748,556 - Probation Work Crew Fees 3,750 2,910 (840) 17% 13% 22,500 22,500 - Miscellaneous 750 442 (308) 17% 10% 4,500 4,500 - Electronic Monitoring Fee 21,667 26,405 4,738 17% 20% 130,000 130,000 - Probation Superv. Fees 31,667 29,413 (2,254) 17% 15% 190,000 190,000 - Interest on Investments 1,500 726 (774) 17% 8% 9,000 9,000 - Interfund - Sheriff 8,333 8,333 0 17% 17% 50,000 50,000 - Crime Prevention Grant 8,333 - (8,333) 17% 0% c) 50,000 50,000 - CFC-Domestic Violence 12,472 - (12,472) 17% 0% c) 74,832 74,832 - Total Revenues 588,625 758,826 170,201 17% 21% 3,531,755 3,531,755 - Transfers In-General Fund 72,554 72,554 - 17% 17% 435,328 435,328 - TOTAL RESOURCES 1,231,179 1,461,605 230,426 17% 32% 4,537,083 4,597,309 60,226 REQUIREMENTS: Exp. Expenditures Personal Services 515,215 485,996 29,219 17% 16% 3,091,291 3,091,291 - Materials and Services 148,281 108,147 40,134 17% 12% 889,687 889,687 - Capital Outlay 17 - 17 17% 0% 100 - 100 Contingency 92,668 - 92,668 17% n/a 556,005 - 556,005 TOTAL REQUIREMENTS 756,181 594,143 162,038 17% 13% 4,537,083 3,980,978 556,105 NET (Resources - Requirements) 474,998 867,462 392,464 - 616,331 616,331 a) Contracts recently approved, expecting payment by end of September b) Annual allocation normally received by end of calendar year c) State/County invoiced quarterly Page 10 CHILDREN & FAMILIES COMMISSION Statement of Financial Operating Data Two Months Ended August 31, 2012 RESOURCES: Beg. Net Working Capital Revenues Federal Grants Title IV - Family Sup/Pres HealthyStart Medicaid Level 7 Services State Prevention Funds HealthyStart /R-S-G OCCF Grant Program Fees Charges for Svcs-Misc Court Fines & Fees Interest on Investments Grants, Private Interfund Grants Total Revenues Year to Date FY 13 Year End Budget Actual Variance FY % Coll. % Budget Projection Variance $ 511,994 $ 574,985 $ 62,991 100% 112% $ 511,994 $ 574,985 $ 62,991 33,240 - (33,240) 6,589 - (6,589) 14,167 - (14,167) 32,816 - (32,816) 8,020 12,031 4,011 36,659 - (36,659) 69,966 - (69,966) - 200 200 1,333 50 (1,283) 13,248 12,562 (686) 167 680 513 333 - (333) 53,479 - (53,479) 270,017 25,522 (244,495) Trans from General Fund 46,000 46,000 - 17% 17% 275,984 275,984 - Total Transfers In 46,000 46,000 - 17% 17% 275,984 275,984 - TOTAL RESOURCES REQUIREMENTS: Expenditures Personal Services Materials and Services Capital Outlay Contingency TOTAL REQUIREMENTS 828,011 646,508 (181,503) 17% 27% 17% 0% a) 199,441 196,741 (2,700) 17% 0% 39,533 39,533 - 17% 0% a) 85,000 60,000 (25,000) 17% 0% 196,898 196,898 - 17% 25% b) 48,122 54,522 6,400 17% 0% 219,951 219,951 - 17% 0% a) 419,796 391,940 (27,856) 17% n/a - 1,000 1,000 17% 1% 8,000 4,000 (4,000) 17% 16% c) 79,485 75,034 (4,451) 17% 68% 1,000 5,000 4,000 17% n/a 2,000 2,000 - 17% 0% d) 320,874 350,374 29,500 17% 2% 1,620,100 1,596,993 (23,107) Exp. 2,408,078 2,447,962 39,884 107,912 97,579 10,333 17% 15% e) 647,474 601,397 46,077 246,000 35,634 210,366 17% 2% f) 1,475,997 1,441,745 34,252 17 - 17 17% 0% 100 - 100 47,418 - 47,418 17% n/a 284,507 284,507 401,347 133,212 268,135 17% 6% NET (Resources - Requirements) 426,664 513,295 86,631 2,408,078 2,043,142 364,936 404,820 404,820 a) Federal and state grants will be less than estimated for FY 2013 budget b) Additional GLS grant funds awarded c) State reduced the Circuit Court fees d) Additional grant funds of $17,500 - A & D 70 and $12,000 EUDL projected to be received e) Personnel expenditures projected to be less than appropriated. Open position, due to retirement, will not be filled f) M & S projected to be less than appropriated due to revenue reductions and office costs reductions Page 11 SOLID WASTE Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Year End Budget Actual Variance FY % Coll. % Budget Projection Variance RESOURCES: Beg. Net Working Capital $ 700,513 $ 807,470 $ 106,957 100% 115% $ 700,513 $ 807,470 $ 106,957 Revenues Miscellaneous 3,667 3,650 (17) 17% 17% 22,000 22,000 - Franchise 3% Fees 33,333 5,417 (27,916) 17% 3% a) 200,000 200,000 - Commercial Disp. Fees 143,333 170,433 27,100 17% 20% 860,000 860,000 - Private Disposal Fees 219,000 289,193 70,193 17% 22% 1,314,000 1,314,000 - Franchise Disposal Fees 666,667 722,545 55,878 17% 18% 4,000,000 4,000,000 - Yard Debris 12,167 25,914 13,747 17% 35% b) 73,000 73,000 - Special Waste 4,167 1,920 (2,247) 17% 8% c) 25,000 25,000 - Interest 1,250 1,396 146 17% 19% 7,500 7,500 - Leases 1,800 1,800 - 17% 17% 10,801 10,801 - Recyclables 7,500 9,579 2,079 17% 21% 45,000 45,000 - Total Revenues 1,092,884 1,231,848 138,964 17% 19% 6,557,301 6,557,301 - TOTAL RESOURCES 1,793,397 2,039,319 245,922 17% 28% 7,257,814 7,364,771 106,957 REQUIREMENTS Exp. Expenditures Personal Services 288,887 274,905 13,982 17% 16% 1,733,321 1,733,321 - Materials and Services 498,219 239,588 258,631 17% 8% d) 2,989,313 2,989,313 - Debt Service 157,786 - 157,786 17% 0% e) 946,713 946,713 - Capital Outlay 13,833 - 13,833 17% 0% f) 83,000 83,000 - Transfers Out-Road 46,045 - 46,045 17% 0% g) 276,272 276,272 - Trans Out-Capital Res 105,000 - 105,000 17% 0% h) 630,000 630,000 - Contingency 99,866 - 99,866 17% n/a 599,195 599,195 TOTAL REQUIREMENTS 1,209,636 514,494 695,142 17% 7% 7,257,814 6,658,619 599,195 NET (Resources - Requirements) 583,761 1,524,825 941,064 - 706,152 706,152 a) Due April 15, 2013 b) Seasonal item-Fall and Spring c) Dependent on special clean-ups such as asbestos and contaminated soil d) Purchasing will pick up as year progresses e) Semi-Annual: November and May f) In the process of contacting bidders g) Quarterly h) $315,000 to be transferred in September Page 12 RISK MANAGEMENT Statement of Financial Operating Data Two Months Ended August 31, 2012 RESOURCES: Beginning Net Working Capital $2,000,000 $2,240,791 $240,791 Revenues Inter-fund Charges: General Liability 43,722 43,722 0 Property Damage 52,247 52,247 0 Vehicle 28,939 28,939 (0) Workers' Compensation 240,029 240,029 0 Unemployment 41,667 41,692 25 Claims Reimb-Workers' Compensation 83 - (83) Claims Reimb-Gen Liab/Property 10,000 75 (9,925) Process Fee-Events/Parades 333 245 (88) Miscellaneous 8 35 27 Skid Car Training 2,667 710 (1,957) NSF Fee - 30 30 Interest on Investments 2,500 2,168 (332) Other Interest 8 - (8) TOTAL REVENUES 422,204 409,893 (12,312) TOTAL RESOURCES 2,422,204 2,650,683 228,479 Appropriations/Expenditures Direct Insurance Costs: GENERAL LIABILITY Settlement / Benefit 2,006 Defense 11,877 Professional Service - Insurance 135,600 Loss Prevention 5,439 Repair / Replacement - Total General Liability 50,000 154,922 (104,922) PROPERTY DAMAGE Insurance 158,562 Repair / Replacement 1,142 Total Property Damage 41,667 159,704 (118,038) VEHICLE Professional Service - Insurance 366 Loss Prevention 555 Repair / Replacement 2,292 Total Vehicle 16,667 3,213 13,454 WORKERS' COMPENSATION Settlement / Benefit 55,484 Professional Service - Insurance 69,009 Loss Prevention 14,729 Miscellaneous - Total Workers' Compensation 166,667 139,222 27,445 UNEMPLOYMENT - Settlement/Benefits 41,667 - 41,667 Total Direct Insurance Costs Insurance Administration: Personal Services Materials & Service Capital Outlay Total Insurance Administration Transfers Out TOTAL REQUIREMENTS NET a) Annual premium paid in July 2012 Year to Date Year End Budget Actual Variance % of FY % F Coll. Budget Projection Variance 100% 112% $2,000,000 $2,240,791 $240,791 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 0% 17% 0% 17% 12% 17% 70% 17% 4% 17% n/a 17% 14% 17% 0% 17% 16% 17% 58% Ex . a) 17% 52% a) 17% 64% 17% 3% a) 262,333 262,333 - 313,480 313,480 - 173,635 173,635 - 1,440,176 1,440,176 - 250,000 250,000 - 500 500 - 60,000 60,000 - 2,000 2,000 - 50 50 - 16,000 16,000 - - 30 30 15,000 15,000 - 50 50 - 2,533,224 2,533,254 30 4,533,224 4,774,045 240,821 300,000 300,000 - 250,000 250,000 - 100,000 100,000 17% 14% 1,000,000 1,000,000 - 17% 0% 250,000 240,000 10,000 316,667 457,061 (140,394) 17% 24% 51,316 46,741 4,575 17% 15% 28,165 20,410 7,755 17% 12% 17 - 17 17% 0% 79,498 67,151 12,346 17% 14% 1,200 - 1,200 17% 0% 397,364 524,212 (126,848) 17% 22% 2,024,840 2,126,471 101,631 1,900,000 1,890,000 10,000 307,896 307,896 - 168,990 168,990 - 100 - 100 476,986 476,886 100 7,200 7,200 - 2,384,186 2,374,086 10,100 * 2,149,038 2,399,959 250,921 Page 13 * Contingency is $2,149,038. DESCHUTES COUNTY 911 Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Year End Budget Actual Variance % of FY % Coll. Budget Projection Variance RESOURCES: Beg. Net Working Capital $ 8,000,000 $ 8,883,086 $ 883,086 100% 111% $ 8,000,000 $ 8,883,086 $ 883,086 Revenues Property Taxes - Current 1,091,281 - (1,091,281) 17% 0% a) 6,547,687 6,547,687 - Property Taxes - Prior 30,833 109,973 79,140 17% 59% 185,000 185,000 - Federal Grants 40,000 - (40,000) 17% 0% b) 240,000 240,000 - State Reimbursement 6,000 - (6,000) 17% 0% c) 36,000 36,000 - Telephone User Tax 125,000 - (125,000) 17% 0% 750,000 750,000 - Data Network Reimb. 5,000 - (5,000) 17% 0% d) 30,000 30,000 - Jefferson County 5,000 276 (4,724) 17% 1% 30,000 30,000 - User Fee 7,333 - (7,333) 17% 0% 44,000 44,000 - Police RMS User Fees 46,492 - (46,492) 17% 0% d) 278,950 278,950 - Contract Payments 5,167 - (5,167) 17% 0% d) 31,000 31,000 - Miscellaneous 1,500 1,390 (110) 17% 15% 9,000 9,000 - Interest 6,667 8,687 2,020 17% 22% 40,000 40,000 - Interest on Unsegregated Tax 100 28 (72) 17% 5% 600 600 - Total Revenues 1,370,373 120,354 (1,250,019) 17% 1% 8,222,237 8,222,237 - TOTAL RESOURCES 9,370,373 9,003,440 (366,933) 17% 56% 16,222,237 17,105,323 883,086 REQUIREMENTS: % Exp. Expenditures Personal Services 717,800 674,769 43,031 17% 16% 4,306,797 3,800,000 506,797 Materials and Services 341,700 292,567 49,133 17% 14% 2,050,202 2,050,202 - Capital Outlay 93,667 - 93,667 17% 0% 562,000 562,000 - Transfers Out-Reserve Fund 83,333 - 83,333 17% 0% e) 500,000 500,000 - Contingency 1,467,206 - 1,467,206 17% n/a 8,803,238 - 8,803,238 TOTAL REQUIREMENTS 2,703,706 967,336 1,736,370 17% 6% 16,222,237 6,912,202 9,310,035 NET(Resources - Requirements) 6,666,667 8,036,104 1,369,437 - 10,193,121 10,193,121 a) Current year taxes not due until November b) ODOT Project-reimbursements expected to be received over the next 3-4 months c) July & August bills have been mailed; ongoing monthly reimbursements from Office of Emergency Mgmt for MSAG/GIS maintenance d) Annual billings to Police/Fire agencies to be mailed in December e) Amount appropriated to be transferred September 15, 2012 Page 14 Health Benefits Trust Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date FY 2013 Budget Actual 7 Variance FY % Coll. % Budget Projection Variance RESOURCES Beg. Net Working Capital $13,800,000 $ 14,551,028 $ 751,028 100% 105% $ 13,800,000 $14,551,028 751,028 Revenues: Internal Premium Charges 2,132,500 2,133,272 772 17% 17% 12,795,000 12,795,000 - P/T Emp - Add'I Prem 8,333 5,514 (2,819) 17% 11% 50,000 50,000 - Employee Prem Contribution 105,000 105,235 235 17% 17% 630,000 630,000 - COIC 216,667 229,434 12,767 17% 18% 1,300,000 1,300,000 - Retiree / COBRA Co-Pay 125,000 155,118 30,118 17% 21% 750,000 750,000 - Medical Services Reimb - 323 323 17% n/a - 323 323 Interest 13,333 14,169 836 17% 18% 80,000 80,000 - Total Revenues 2,600,833 2,643,065 42,232 17% 17% 15,605,000 15,605,323 323 TOTAL RESOURCES 16,400,833 17,194,093 793,260 92% 105% 29,405,000 30,156,351 751,351 REQUIREMENTS K9 Expenditures: Personnel Services (all depts) 33,462 32,155 1,307 17% 16% 200,772 200,772 - Materials & Services Claims Paid-Medical 1,671,700 2,027,794 (356,094) 17% 20% a) 10,030,200 11,716,144 (1,685,944) Claims Paid-Prescription 320,600 322,129 (1,529) 17% 17% a) 1,923,600 1,861,188 62,412 Claims Paid-Dental/Vision 297,700 286,351 11,349 17% 16% a) 1,786,200 1,654,471 131,729 Refunds - (7,881) 7,881 17% n/a - (7,881) 7,881 Insurance Premiums 58,333 44,339 13,994 17% 13% 350,000 350,000 - State Assessments 26,667 89,329 (62,662) 17% 56% 160,000 160,000 - Administration Fee 53,333 54,004 (671) 17% 17% 320,000 320,000 - Preferred Provider Fee 8,333 8,299 34 17% 17% 50,000 50,000 - Health Impact 9,167 8,619 548 17% 16% 55,000 55,000 - Other - Administration 10,892 5,284 5,608 17% 8% 65,353 65,353 - Other - Wellness 17,500 3,350 14,150 17% 3% 105,000 105,000 - Admin & Wellness 2,474,226 2,841,617 (367,391) 17% 19% 14,845,353 16,329,275 (1,483,922) Deschutes On-site Clinic Healthstat 114,000 100,254 13,746 17% 15% b) 684,000 684,000 - Medical Supplies 5,000 1,984 3,016 17% 7% 30,000 30,000 - Equipment 167 - 167 17% 0% 1,000 1,000 - Other 3,572 6,834 (3,261) 17% 32% 21,433 21,433 - Total DOC 122,739 109,072 13,667 17% 15% 736,433 736,433 - Deschutes On-site Pharmacy Contracted Services 51,381 50,000 1,381 17% 16% b) 308,287 308,287 - Medication and Drugs 166,667 180,340 (13,673) 17% 18% b) 1,000,000 1,000,000 - Other 2,760 2,832 (72) 17% n/a 16,559 16,559 - Total Pharmacy 220,808 233,172 (12,364) 17% n/a 1,324,846 1,324,846 - Capital Outlay 17 - 17 17% n/a 100 - 100 Contingency 2,049,583 - 2,049,583 17% n/a 12,297,496 - 12,297,496 TOTAL EXPEND/REQUIREMNTS 4,680,026 3,216,015 1,684,818 17% 11% 29,405,000 18,591,326 10,813,674 NET (Resources - Requirements) 11,720,808 13,978,078 2,478,078 a) Projection based on annualizing 9 weeks of claims paid. YTD actual is $256,251 per week b) Actual amounts include estimates. Healthstat and Take Care have not yet been paid 11,565,025 11,565,025 Page 15 Deschutes County - Fair and Expo Center YTD-Budget Basis Commissioners Statement of Financial Operating Data Two Months Ended August 31, 2012 Year to Date Year End Budget (2112 of FY 2013 annual) Actual Variance FY % Coll. % Budget Projection Variance RESOURCES: Beg. Net Working Capital $ 46,373 $ 35,055 $ (11,318) 100% 76% $ 46,373 $ 35,055 $ (11,318) Receipts: Special Events Revenues 101,263 17,176 (84,087) 17% 3% 607,578 585,754 (21,824) Interest 250 56 (194) 17% 4% 1,500 1,306 (194) Storage 9,574 - (9,574) 17% 0% 57,441 57,441 - Camping at F & E 1,000 - (1,000) 17% 0% 6,000 6,000 - Horse Stall Rental 5,000 16,262 11,262 17% 54% 30,000 46,262 16,262 Concession Food 31,667 3,523 (28,144) 17% 2% 190,000 188,523 (1,477) Rights (Signage, etc.) 15,833 16,000 167 17% 17% 95,000 95,000 - Interfund Contract 3,333 400 (2,933) 17% 2% 20,000 20,000 - Miscellaneous 1,133 6 (1,127) 17% n/a 6,800 6,806 6 Total Receipts 169,053 53,422 (115,631) 17% 5% 1,014,319 1,007,091 (7,228) Transfers In General Fund (001) 28,333 28,334 - 17% 17% 170,000 170,000 - Room Tax (160) 4,291 4,290 - 17% 17% 25,744 25,744 - Welcome Center (170) 13,800 13,800 - 17% 17% 82,800 82,800 - Annual County Fair (619) 44,043 - (44,043) 17% 0% 264,259 264,259 - Total Transfers In 90,467 46,424 (44,043) 542,803 542,803 - TOTAL RESOURCES 305,893 134,901 (170,992) 17% 8% 1,603,495 1,584,949 (18,546) REQUIREMENTS: Exp. Expenditures: Personal Services 138,647 137,062 1,585 17% 16% 831,882 830,308 1,574 Materials and Services 84,371 73,681 10,689 17% 15% 506,223 516,649 (10,426) Debt Service 19,020 - 19,020 17% 0% 114,119 114,119 - Capital Outlay 2,377 9,000 (6,624) 17% 63% 14,259 14,259 - Total Expenditures 244,414 219,743 24,671 1,466,483 1,475,335 (8,852) Contingency 22,835 - 22,835 17% n/a 137,012 - 137,012 TOTAL REQUIREMENTS 267,249 219,743 47,507 17% 14% 1,603,495 1,475,335 128,160 NET (Resources - Requirements) 38,644 (84,842) (123,486) - 109,614 109,614 Page 16 H v w ti 0 a a a H a U a 0 0 z a~ a~ N all C O N V) ~ y 7 U Q m 7 O O O r ~U o a Z V C 1 1 1 1( 1 OMOO OO ~Oth O~W) 00001 1~ ONtO0mcl OONOr-e~ ~t ~ ti N M i- N O M 00 O O M OPOd'4! O Ct Ct Ct ~ O N to O M 0 0 O0 N O P M r m jo M O O N W) ~OONeh ' oooMt'o N Lp t; et V 0Nt00 O ~ N i 1 1 1 1 Ii cM O 0 N to P00C4" ' OOOM t"! Nto0e1'P V N CD co ~ N N y U U a ~ t8 m m y v Iq C _ i O C C 3 C W LL N y co m 'O O O a1 C i Lu Z N « rL. > > m /Uy to wy C N(D CL ac 0 r y y m (p W 0 O 4) O .r+ L O wmJccw F- cF- 1 1 1 1 1 1 MIM 00 0 0 M t o 0 LO O O ' - 0 C P U) to m to O Co Nti ~-f-N O M LO O O O O O L LO O C ' - 0 0 ' P N r in N O M to w to V v MIv O t~ LM Coo 0 O V O lu, co co 1 1 1 1 1 1 W) N N O M Me~ M N t0 ' ' to to 00 to d O M ~t P co m ~ y m C 0 Cl 0 co y td tt~ W Z~ vfy ~ a L F tY C m -0 Z _ `C > O X co Lu ~Li5 M M O P P 1 1 1 M M T- V. M M O P to co O O O ' P to N O N O O M F N CO) ~ M et O ~ 0 ~ CV) w . 1- n O O O tt) t0 O O O O ~ N I- M M ' 1A co m T- M N co .W O O N N ' N V. N N c M 0 0 to to ~ r r 00 Go 13 to 1 1 1 1 N C ~M ~ `tt m t O ON N ' I ap N N N 0 o a O O v r r ' V V I fI a t8 O) ~ C O ~ y CO 0 m L 7 C C N 0 a, a C K 03 U O F m Z N ~ O O P O 1 C m LL M N N U. LL m V 0 tD C 0 ~a a pl m C Q O oU y > eLti "a p c d x m C7 O a E 3 y o m V V y 7 C14 y w N m 3 t P } P LL 0 v-. N O P } p U. N C 'O <L V O C m C C U 8 N tti tq a O ttl fS co O 0 H 44 + N ~ N CO Z W c =3 2 LL O M C 2 i5 O U m O N U a) C 7 O U O Z Z Q Cl) W U z 9 CD D U Z W N_ O N M N 7 O) 7 Q L O) 7 O U C a) f0 7 t0 ~ m (0 a c 7 O E Q w c a) E O E E O Q U C O S U a) L O C co LO It lqt N C 14 LO to ti I o O n O n LO Deschutes County Bethlehem Inn (Fund 128) Two Months Ended August 31, 2012 RESOURCES: Beg. Net Working Capital Revenues Grants - Private Lease Payments Total Revenues Transfers In: Project Development (140) Gen Capital Res (143) TOTAL RESOURCES REQUIREMENTS: Expenditures Debt Service: Interest Expense Interest Payment TOTAL REQUIREMENTS Budget Actual Variance FY % Coll. % I Budget I Projection I Variance $(2,710,000) $(2,710,173) $ (173) 100% 100% $(2,710,000) $(2,710,173) $ (173) 16,765 - (16,765) 17% 0% 100,592 100,592 - 4,068 6,102 2,034 17% 25% 24,408 24,408 - 20,833 6,102 (14,731) 17% 5% 125,000 125,000 - 275,000 - (275,000) 17% 0% 1,650,000 1,650,000 - 176,667 - (176,667) 17% 0% 1,060,000 1,060,000 - (2,237,500) (2,704,071) (466,571) 17% -2163% 125,000 124,827 (173) Exp. 4,167 2,765 1,402 17% 11% a) 25,000 17,000 8,000 16,667 - 16,667 17% 0% 100,000 100,000 - 20,833 2,765 18,068 17% 2% 125,000 117,000 - NET (Resources - Requirements) (2,258,333) (2,706,836) (448,503) a) Interest on August 2012 negative cash balance: $1,358.46. b) Inception through August 31, 2012 Revenues - Lease Payments $ 54,918 Expenditures: Land/Building (Amertitle) - July 2007 2,241,313 Hickman Williams 17,578 City of Bend - May 2008 250,000 KN EX CO 5,289 Kleinfelder 3,732 Total expended on facility 2,517,913 Interest on Negative Cash Balance 243,841 Total expended 2,761,754 b) - 7,827 (173) Net $ 2,706,836) Deschutes County General Support Services - BOCC Conference/Seminar, Education/Training and Travel Expenditures and BOCC - County College Expenditures FY 2013 BOCC Conference & -Travel Jul Aug YTD Total Tammy Baney Con_f/Sem & Educ/Training - - - Travel Meals - ' - - 20 - - 20 Accommodations Airfare Mileage reimbursement - - - 127 127 - _ 384 T 384 - Ground Transport/Parking - - - - - 35 _ 35 y Total Bane 5 66 566 Alan Unger Conf/Sem & Educ/Trainin 35 35 Travel Meals Accommodations - - - Airfare Mileage reimbursement - 112 112 Ground Transport/Parking - - - Total Unger 35 112 147 Tony DeBone Conf/Sem & Educ/Training Travel Meals Accommodations - ' - - - - - - Airfare Mileage reimbursement - - - Ground Transport - - - Total Other Total - BOCC Department _ Co_nf/Sem & Educ/Training 35 35 Travel Meals 20 20 Accommodations - 127 127 Airfare - - - Mileage Reimbursement - 496 496 Ground Transport - - ; 35 - 35 Total - BOCC Department 35 678 713 - FY 2013 Budget - 15,250 Percent of FY 2013 Budget Expended BOCC County College Office/Copier Supplies - Meeting Supplies Total BOCC County College - - - 9/4/2012 r j.`~TES c0 ~U ~2 0 { Deschutes County Administrative Policy No. F-10 Effective Date: January 7, 2008 Revised Date: June 24, 2009 Revised Date: September 20, 2012 INVESTMENT POLICY GUIDELINES STATEMENT OF POLICY All Deschutes County investments must be made in accordance with State Law and in accordance with the Deschutes County Investment Policy. Investment policies must be approved by the State of Oregon Short-Term Fund Board. This policy is modeled on the investment policy recommended by the Oregon Short-Term Fund Board and incorporates State Law requirements and restrictions. APPLICABILITY This policy applies to all Deschutes County investments. POLICY AND PROCEDURE The Deschutes County Treasurer is the portfolio manager. It is the policy of Deschutes County to invest public funds in a manner which will provide the maximum security while providing liquidity to meet the daily cash flow demands and receive the highest investment return while conforming to all State Statutes governing the investment of public funds and this Investment Policy. SCOPE: This investment policy applies to activities of Deschutes County with regard to investing the financial assets of all funds for which investment authorization has been given, including but not limited to the following funds: A. General Fund B. Special Revenue Funds C. Capital Project Funds D. Enterprise Funds E. Debt Service Funds F. Internal Service funds G. Trust and Agency Funds Funds held and invested by trustee or fiscal agents are excluded from these rules; however such funds are subject to the regulations established by the State of Oregon. Funds of Deschutes County will be invested in compliance with ORS 294 and other applicable statutes. Investments will be in accordance with this policy and any written administrative procedures. Investment of any tax-exempt borrowing proceeds and any debt service funds will comply with the "arbitrage" restrictions of Section 148 of the Internal Revenue Code of 1986. Funds of other agencies, jurisdictions, district or entities for which the County Treasurer serves as custodian will not be invested without written authorization from their governing body, and the Deschutes Board of County Commissioners. Policy #F-10, Investment Policy Guidelines Page I of 7 OBJECTIVES: Deschutes County's Investment Objectives are: Preservation of capital and the protection of investment principal. Conformance with Federal, State and other legal requirements. Maintenance of sufficient liquidity to meet operating requirements. Diversification to avoid incurring unreasonable risks regarding specific security type or individual financial institutions. Attainment of a market rate of return throughout budgetary and economic cycles. DELEGATION OF AUTHORITY: The County Treasurer is designated as the Investment Officer for Deschutes County and is responsible for investment decisions and activities. The investment officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The administration of the cash management program is handled by the County Treasurer who is responsible to manage the day-to-day operations of the County's investment portfolio, place purchase orders and sell orders with dealers and financial institutions and prepare reports as required. INVESTMENT LIMITATIONS: Specific investment types shall not exceed the percentage of the total investment portfolio indicated below. All securities are also included on the list of "U.S. Government Agency Securities for Local Government Investments under ORS 294.035 and 294.040." This list is maintained by the Office of the Oregon State Treasurer. Securities issued by a single financial institution (Banker's Acceptance and Certificates of Deposit) will be limited to 30% of the total portfolio. SUITABLE AND AUTHORIZED INVESTMENTS The following investments will be permitted by this policy, ORS 294.035 and 294.810: • U.S. Treasury Obligation (bills, notes and bonds) U.S. Government Agency Securities and Instruments of Government Sponsored Enterprises • Banker's Acceptances (BA's) from qualified institutions • State of Oregon Investment Pool • Certificates of Deposits (CD's) (Subject to ORS 295 collateralization) • Certificate of Deposit Account Registry Services (CDARS) Policy #F-10, Investment Policy Guidelines Page 2 of 7 • Repurchase Agreements e State and Local Government Securities • Corporate Indebtedness PORTFOLIO DIVERSIFICATION Diversification will be sought within the following guidelines with the purpose of reduction of overall portfolio risk. The investments shall be diversified by investment type, issuer and maturity: U.S. Treasury 100% US Government Agencies 75% 50% in any single government sponsored enterprise State of Oregon Investment Pool 100% or the maximum imposed by statute Certificates of Deposit 25% of total portfolio 30% in any single qualified financial institution Banker's Acceptances 25% of total portfolio 30% in any single qualified financial institution Commercial Paper 20% of total portfolio 5% in any one corporation, subsidiaries or affiliates State & Local Government Securities 25% of total portfolio Repurchase Agreements 25% of total portfolio 10% in any single qualified financial institution Corporate Indebtedness 10% of total portfolio Maximum 24 month maturity Note: These limits apply to the total portfolio at the time the Investments are purchased. COMPETITIVE SELECTION OF BIDS OR OFFERS: Before the investment officer invests funds, competitive offers or bids will be sought from at least two institutions, or a decision to invest will be based on data received from at least two institutions. The most favorable offer or bid will be awarded the transaction. MATURITY SCHEDULING: Policy #F-10, Investment Policy Guidelines Page 3 of 7 r To the extent possible, the County will attempt to match its investments with anticipated cash flow requirements. No investment security shall have a maturity of more than 24 months at the time of purchase, but such investments are limited to 30% of the total portfolio. The investment portfolio operates on a policy of buying securities and holding them until their specified maturity date, but during certain market conditions when it becomes advantageous, the Portfolio Manager may sell securities prior to their maturity date. SAFEKEEPING AND COLLATERALIZATION: Investment securities purchased by the Portfolio Manager will be in safekeeping with the bank's Investment Division Safekeeping Department. If it is felt necessary to safe keep with a third party, the Trust Department of the bank will be considered to be a third party for the purpose of safekeeping of securities purchased from that bank. Another permissible option would be to use a third party bank to provide safekeeping for all purchased securities. The purchase and sale of all securities will be on a payment versus delivery basis. The custodian shall issue a safekeeping receipt to the Treasurer listing the specific instrument, rate, maturity and other pertinent information. All other repurchase agreements shall require safekeeping and a master repurchase agreement. Deposit-type securities (i.e. certificates of deposit) shall be collateralized through the Collateral Pool Manager as required by ORS 295.015 for any amount exceeding FDIC coverage. Other investments will be held by the custodian as evidenced by safekeeping receipts. QUALIFIED INSTITUTIONS: The investment officer shall maintain a list of all authorized broker/dealers and financial institutions which are approved for investment purposes or investment dealings. Any firm is eligible to make an application to Deschutes County and upon due consideration and approval will be added to the list. Additions or deletions to the list will be made at the Portfolio Manager's discretion. At the request of Deschutes County, the firms performing investment services shall provide their most recent financial statements or Consolidated Report of Condition (call report) for review. Further, there should be in place, proof as to all the necessary credentials and licenses held by employees of the broker/dealers who will have contact with Deschutes County as specified by but not necessarily limited to the National Association of Securities Dealers (NASD), Securities and Exchange Commission (SEC), etc. Deschutes County shall conduct an annual evaluation of each firm's credit worthiness to determine if it should remain on the list. Securities broker/dealers not affiliated with a bank shall be required to have an office located in Oregon and/or be classified as reporting dealers affiliated with the Federal Reserve as primary dealers. PRUDENCE: The standard of prudence to be used by the County Treasurer in the context of managing the overall portfolio shall be the prudent investor rule, which states, "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercises in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." Policy #F-10, Investment Policy Guidelines Page 4 of 7 INDEMNITY CLAUSE: The County shall defend and indemnify the County Treasurer and staff from personal liability for losses that might occur pursuant to administering this investment policy as long as the County Treasurer and staff exercise prudence in accordance with this policy, and act within the boundaries of this Policy. ETHICS & CONFLICTS OF INTEREST: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees, officers and their families shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the County. Officers and employees shall, at all times, comply with the State of Oregon Government Standards and Practices code of ethics set forth in ORS 244. PERFORMANCE EVALUATION: The performance of the County's portfolio shall be measured against the performance of the Oregon Local Government Investment pool, and the three-month and twelve-month Treasury Bills. ACCOUNTING METHOD: Deschutes County shall comply with all required legal provisions and Generally Accepted Accounting Principles (GAAP). The accounting principles are those contained in the pronouncements of authoritative bodies including but not necessarily limited to, the American Institute of Certified Public Accountants (AICPA); the Financial Accounting Standards Board (FASB); and the Government Accounting Standards Board (GASB). An investment fee of 5% of the total interest earned on all invested funds will be deducted and credited to the County Finance Internal Service Fund each month. After deducting the investment fee, interest earnings will be credited on the last day of each month to the funds from which the investments were made based on the average daily balance in the fund. INTERNAL CONTROLS The investment officer is responsible for establishing and maintaining an adequate internal structure designed to reasonably protect the assets of the County from loss, theft or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the investment officer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: - Control of collusion. Policy #F-10, Investment Policy Guidelines Page 5 of 7 - Separation of transaction authority from accounting and record keeping. - Custodial safekeeping - Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. - Clear delegation of authority to subordinate staff members. - Written confirmation of transactions for investments and wire transfers. - Compliance and oversight with investment parameters including diversification and maximum maturities. REPORTING REQUIREMENTS: The Deschutes County Treasurer will provide a monthly report to the County Commissioners and the County Administrator. This report will include but not necessarily be limited to: portfolio activity, individual securities held at the end of the reporting period, average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks, and investments by maturity date. Additionally, in accordance with Generally Accepted Accounting Principles, investments are reported in the County's Comprehensive Annual Financial Report at market value. REVIEW: This policy shall be reviewed and modified, if appropriate, by the Deschutes County Board of Commissioners or if market changes warrant review. Annual readoption by the reviewing authority is required by ORS 294.135a. In addition an Investment Committee consisting of five members will meet and review any changes to this Policy. This committee will consist of one County Commissioner and four additional members with backgrounds such as a Banker, Security Broker, Controller/Chief Financial Officer, or Government Finance Manager. AUTHORIZED FINANCIAL INSTITUTIONS: BANKS Bank of America - Merrill Lynch Bank of the Cascades Chase Bank Columbia State Bank Home Federal Bank Key Bank PremierWest Bank Sterling Savings Bank South Valley Bank & Trust Policy #F-10, Investment Policy Guidelines Page 6 of 7 Umpqua Bank Union Bank US Bank Wells Fargo OTHER CastleOak Securities, L.P. Oregon Local Government Investment Pool Piper Jaffray RBC Wealth Management Seattle-Northwest Securities Corporation UBS Financial Services Approved by the Deschutes County Board of Commissioners September 24, 2012. Erik Kropp Interim County Administrator Policy #F-10, Investment Policy Guidelines Page 7 of 7 oG~JTes ~ Z{ ' Deschutes County Administrative Policy No. F-10 Effective Date: January 7, 2008 Revised Date: June 24, 2009 Revised Date: Deee beF 13, 2 4June 4, 2012 INVESTMENT POLICY GUIDELINES STATEMENT OF POLICY All Deschutes County investments must be made in accordance with State Law and in accordance with the Deschutes County Investment Policy. Investment policies must be approved by the State of Oregon Short-Tenn Fund Board. This policy is modeled was designed on the after the; model investment policy recommended by the Oregon Short-Tenn Fund Board and incorporates State Law requirements and restrictions, and was has been approved by the Oregon Short-Term Fund Board. APPLICABILITY This policy applies to all Deschutes County investments. POLICY AND PROCEDURE The Deschutes County Treasurer is the portfolio manager. It is the policy of Deschutes County to invest public funds in a manner which will provide the maximum security while providing liquidity to meet the daily cash flow demands and receive the highest investment return while conforming to all State Statutes governing the investment of public funds and this Investment Policy. SCOPE: This investment policy applies to activities of Deschutes County with regard to investing the financial assets of all funds for which investment authorization has been given, including but not limited to the following funds: A. General Fund B. Special Revenue Funds C. Capital Project Funds D. Enterprise Funds E. Debt Service Funds F. Internal Service funds 3.G. Trust and Agency Funds Funds held and invested by trustee or fiscal agents are excluded from these rules; however such funds are subject to the regulations established by the State of Oregon. Funds of Deschutes County will be invested in compliance with ORS 294 and other applicable statutes. Investments will be in accordance with this policy and any written administrative procedures. Investment of any tax-exempt borrowing proceeds and any debt service funds will comply with the "arbitrage" restrictions of Section 148 of the Internal Revenue Code of 1986. Policy #F-10, Investment Policy Guidelines Page 1 of 7 Funds of other agencies, jurisdictions, district or entities for which the County Treasurer serves as custodian will not be invested without written authorization from their governing body, and the Deschutes Board of County Commissioners. OBJECTIVES: Deschutes County's Investment Objectives are: Preservation of capital and the protection of investment principal. Conformance with Federal, State and other legal requirements. Maintenance of sufficient liquidity to meet operating requirements. Diversification to avoid incurring unreasonable risks regarding specific security type or individual financial institutions. Attainment of a market rate of return throughout budgetary and economic cycles. DELEGATION OF AUTHORITY: The County Treasurer is designated as the Investment Officer for Deschutes County and is responsible for investment decisions and activities. The investment officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials. The administration of the cash management program is handled by the County Treasurer who is responsible to manage the day-to-day operations of the County's investment portfolio, place purchase orders and sell orders with dealers and financial institutions and prepare reports as required. INVESTMENT LIMITATIONS: Specific investment types shall not exceed the percentage of the total investment portfolio indicated below. All securities are also included on the list of "U.S. Government Agency Securities for Local Government Investments under ORS 294.035 and 294.040." This list is maintained by the Office of the Oregon State Treasurer. Securities issued by a single financial institution (Banker's Acceptance and Certificates of Deposit) will be limited to 30% of the total portfolio. SUITABLE AND AUTHORIZED INVESTMENTS The following investments will be permitted by this policy, ORS 294.035 and 294.810: • U.S. Treasury Obligation (bills, notes and bonds) • U.S. Government Agency Securities and Instruments of Government Sponsored Enterprises • Banker's Acceptances (BA's) from qualified institutions • State of Oregon Investment Pool Policy #F-10. Investment Policy Guidelines Page 2 of 7 • Certificates of Deposits (CD's) (Subject to ORS 295 collateralization) • Certificate of Deposit Account Registry Services (CDARS) • Repurchase Agreements • State and Local Government Securities • Corporate Indebtedness Note: These limits apply to the total portfolio at the time the Investments are purchased. PORTFOLIO DIVERSIFICATION Diversification will be sought within the following guidelines with the purpose of reduction of overall portfolio risk. The investments shall be diversified by investment type, issuer and maturity: U.S. Treasury 100% US Government Agencies 75% 50% in any single government sponsored enterprise State of Oregon Investment Pool 100% or the maximum imposed by statute Certificates of Deposit 25% of total portfolio 30% in any single qualified financial institution Banker's Acceptances 25% of total portfolio 30% in any single qualified financial institution Commercial Paper &-Corporate Metes 20% of total portfolio 5% in any one corporation, subsidiaries or affiliates State & Local Government Securities 25% of total portfolio Repurchase Agreements 25% of total portfolio 10% in any single qualified financial institution Corporate Indebtedness 10% of total portfolio Maximum 4S 4rtonthm_ a_tu_rity _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I Comment [1i]: change to 24 month maturity Note: These limits apply to the total portfolio at the time the Investments are purchased. Policy #17-10, Investment Policy Guidelines Page 3 of 7 COMPETITIVE SELECTION OF BIDS OR OFFERS: Before the investment officer invests funds, competitive offers or bids will be sought from at least two institutions, or a decision to invest will be based on data received from at least two institutions. The most favorable offer or bid will be awarded the transaction. MATURITY SCHEDULING: To the extent possible, the County will attempt to match its investments with anticipated cash flow requirements. No investment security shall have a maturity of more than 24 months, at the time of purchase, but such investments are limited to 30% of the total portfolio. a The investment portfolio operates on a policy of buying securities and holding them until their specified maturity date, but during certain market conditions when it becomes advantageous, the Portfolio Manager may sell securities prior to their maturity date. SAFEKEEPING AND COLLATERALIZATION: Investment securities purchased by the Portfolio Manager will be in safekeeping with the 9bank's Investment Division Safekeeping Department. If it is felt necessary to safe keep with a third party, the Trust Department of the bank will be considered to be a third party for the purpose of safekeeping of securities purchased from that bank. Another permissible option would be to use a third party bank to provide safekeeping for all purchased securities. The purchase and sale of all securities will be on a payment versus delivery basis. The custodian shall issue a safekeeping receipt to the Treasurer listing the specific instrument, rate, maturity and other pertinent information. All other repurchase agreements shall require safekeeping and a master repurchase agreement. Deposit-type securities (i.e. certificates of deposit) shall be collateralized through the Collateral Pool Manager as required by ORS 295.015 for any amount exceeding FDIC coverage. Other investments will be held by the custodian as evidenced by safekeeping receipts. QUALIFIED INSTITUTIONS: The investment officer shall maintain a list of all authorized broker/dealers and financial institutions which are approved for investment purposes or investment dealings. Any firm is eligible to make an application to Deschutes County and upon due consideration and approval will be added to the list. Additions or deletions to the list will be made at the Portfolio Manager's discretion. At the request of Deschutes County, the firms performing investment services shall provide their most recent financial statements or Consolidated Report of Condition (call report) for review. Further, there should be in place, proof as to all the necessary credentials and licenses held by employees of the broker/dealers who will have contact with Deschutes County as specified by but not necessarily limited to the National Association of Securities Dealers (NASD), Securities and Exchange Commission (SEC), etc. Deschutes County shall conduct an annual evaluation of each firm's credit worthiness to determine if it should remain on the list. Securities broker/dealers not affiliated with a bank shall be required to have an office Policy #F-10, Investment Policy Guidelines Page 4 of 7 located in Oregon and/or be classified as reporting dealers affiliated with the Federal Reserve as primary dealers. PRUDENCE: The standard of prudence to be used by the County Treasurer in the context of managing the overall portfolio shall be the prudent investor rule, which states, "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercises in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." INDEMNITY CLAUSE: The County shall defend and indemnify the County Treasurer and staff from personal liability for losses that might occur pursuant to administering this investment policy as long as the County Treasurer and staff exercise prudence in accordance with this policy, and act within the boundaries of this Policy. ETHICS & CONFLICTS OF INTEREST: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees, officers and their families shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the County. Officers and employees shall, at all times, comply with the State of Oregon Government Standards and Practices code of ethics set forth in ORS 244. PERFORMANCE EVALUATION: The performance of the County's portfolio shall be measured against the performance of the Oregon Local Government Investment pool, and the three-month and twelve-month Treasury Bills. ACCOUNTING METHOD: Deschutes County shall comply with all required legal provisions and Generally Accepted Accounting Principles (GAAP) The accounting principles are those contained in the pronouncements of authoritative bodies including but not necessarily limited to, the American Institute of Certified Public Accountants (AICPA); the Financial Accounting Standards Board (FASB); and the Government Accounting Standards Board (GASB). An investment fee of 5% of the total interest earned on all invested funds will be deducted and credited to the County Finance Internal Service Fund each month. After deducting the investment fee, interest earnings will be credited on the a last day of each month to the funds from which the investments-was were made based on the average daily balance in the fund. INTERNAL CONTROLS Policy #F-10, Investment Policy Guidelines Page 5 of 7 The investment officer is responsible for establishing and maintaining an adequate internal structure designed to reasonably protect the assets of the County from loss, theft or misuse. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the investment officer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points: Control of collusion. - Separation of transaction authority from accounting and record keeping. Custodial safekeeping - Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary. Clear delegation of authority to subordinate staff members. Written confirmation of transactions for investments and wire transfers. Compliance and oversight with investment parameters including diversification and maximum maturities. REPORTING REQUIREMENTS: The Deschutes County Treasurer will provide a monthly report to the County Commissioners and the County Administrator. This report will include but not necessarily be limited to: portfolio activity, individual securities held at the end of the reporting period, average weighted yield to maturity of portfolio on investments as compared to applicable benchmarks, and investments by maturity date. Additionally, in accordance with Generally Accepted Accounting Principles, investments are reported in the County's Comprehensive Annual Financial Report at market value. REVIEW: This policy shall be reviewed and modified, if appropriate, by the Deschutes County Board of Commissioners or if market changes warrant review. Annual readoption by the reviewing authority is required by ORS 294.135a. In addition an Investment Committee consisting of five members will meet and review any changes to this Policy. This committee will consist of one County Commissioner and four additional members with backgrounds such as a Banker, Security Broker, Controller/Chief Financial Officer, or Government Finance Manager. Policy #F-10, Investment Policy Guidelines Page 6 of 7 AUTHORIZED FINANCIAL INSTITUTIONS: BANKS Bank of America - Merrill Lynch Bank of the Cascades Chase Bank Columbia State Bank Home Federal Bank Key Bank PremierWest Bank Sterling Savings Bank South Valley Bank & Trust Umpqua Bank Union Bank US Bank Wells Fargo OTHER CastleOak Securities, L.P. Oregon Local Government Investment Pool Piper Jaffray RBC Wealth Management Seattle-Northwest Securities Corporation UBS Financial Services Approved by the Deschutes County Board of Commissioners March 2, 2011. Erik Kropp Interim County Administrator Policy #F-10, Investment Policy Guidelines Page 7 of 7 E 0 A Forestry 61150 SE 27th Street • Bend, Oregon 97702 541-322-7117 • Fax 541-388-2719 MEMORANDUM DATE: September 19, 2012 TO: Board of County Commissioners FROM: Ed Keith, Deschutes County Forester RE: Action needed for Title III funding, September 24 work session Summary: Following the resolution passed by the BOCC on August 20 related to the reauthorization of the Secure Rural Schools Act for 2012, funds are due to be distributed to the county for Title III expenditures. After review of information from the US Forest Service and the Association of Oregon Counties, action is required from the BOCC for the newly reauthorized 2012 Title 111 funds. Background: The deadline for a county to "initiate" Title III projects is September 30, 2012. The county's initiation of a title 111 project must be documented. The Forest Service recommends that the county document its initiation of Title III projects in the meeting minutes of its county governing body (e.g. board of commissioners) which reflect the county's agreement to use the funds for the authorized uses in Title III. Recommended action: The County Forester recommends the following three projects be initiated by approval of the BOCC. This is consistent with past years Title III projects and is in compliance with Title III spending restrictions. • Deschutes County Sheriff's Office Search and Rescue operations on Forest Service Lands • Project Wildfire: CWPP development and revision; Firewise Community Program • County Forester: CWPP development and revision; Firewise Community Program Future actions: The deadline to "obligate" Title III funds is September 30, 2013. Once the BOCC initiates the above listed projects, the County Forester will develop project proposals in cooperation with the Deschutes County Sheriff's Office and Project Wildfire, post the ndtice in the newspaper and take public comment, as required by the SRS Act. At the end of the comment period projects will be presented to the Board of County Commissioners for fund obligation. Merry To: Board of County Commissioners (Work session item) From: David Givans, County Internal Auditor Date: September 14, 2012 Re: Audit committee recommendation item - Code changes to Code Sections 2.14 and 2.15 The agenda item is to discuss with the Board and provide direction to staff on whether they want this brought up for further discussion at a worksession or a business meeting. Your Audit Committee met 9/13/12 and discussed and approved a recommendation to the Board for changes to Code chapters 2.14 (County Internal Auditor) and 2.15 (Audit Committee). These changes were developed in response to recommendations from the last peer review of the Internal Audit Program. The following was the vote on each recommendation Audit Committee Member PM=Public Member Code 2.14 County Internal Auditor Code 2.15 Audit Committee Gayle McConnell, Chair (PM) Yes Yes Michael Shadrach, Prior Chair (PM) Yes Yes Chris Earnest (PM) Yes Yes Jean Pedelty (PM) Yes Yes Jennifer Welander (PM) Yes Yes Dan Despotopulos Yes Yes Anthony DeBone Abstain Abstain I have attached • Deschutes County Code sections 2.14 and 2.15 with the suggested changes highlighted. Whael Shadrach's request for moving this item forward • An audit committee handout outlining the reasons for the change. The intent of the overall changes is to assure independence of the County Internal Auditor position. Some additional administrative changes were incorporated for errors, legal concerns, and improvements. Page 1 of 1 H:\My Documents\Internal Audit Function\Audit committee\Audit Committee Ordinance Work\2012 amendments\Topic Memo for 9-24-12 worksession.docx Chapter 2.14. COUNTY INTERNAL AUDITOR 2.14.010. Appointment of County Internal Auditor. 2.14.020. Qualifications of County Internal Auditor. 2.14.030 Scope of Audits. 2.14.040. Internal Audit Schedule. 2.14.050. Funding. 2.14.060. Access to Employees, Records and Property. 2.14.070. Audit Reporting and Records. 2.14.080. Contract Auditors, Consultants and Experts. 2.14.090. 2.14.100. Quality Assurance Review. AmditGomwAttee. 2.14.010. Appointment or dismissal of County Internal Auditor. The County Internal Auditor shall be appointed by or dismissed by the County Administrator in consultation with a quorum of the public members of the Audit Committee and a majori ty vote of the BOCC. 2.14.020. Qualifications of County Internal Auditor. The County Internal Auditor shall possess adequate professional proficiency, demonstrated by relevant certification, such as CPA (Certified Public Accountant), CIA (Certified Internal Auditor), CGAP (Certified Government Auditing Professional) or a combination of education and experience as would be desired by the County. 2.14.030 Scope of Audits. 1. The County Internal Auditor shall conduct work in accordance with government auditing standards and county policies. The County Internal Auditor shall establish internal auditing policies and procedures to assure that audit work is completed in accordance with those standards. Any audit work that is undertaken not in compliance with standards shall be disclosed in the County Internal Auditor's report. 2. The County Internal Auditor shall have authority to conduct financial, attestation, and performance audits of all departments, offices, boards, activities and agencies of the County in order to independently and objectively determine whether: a. activities and programs being implemented have been authorized by County Code or adopted policy, state law or applicable federal law or regulations; b. activities and programs are being conducted as prescribed by management/governing body to accomplish the objectives intended by County Code, state law or applicable federal law or regulations; c. activities or programs efficiently and effectively serve the purpose intended by County Code, state law or applicable federal law or regulations; d. activities and programs are being conducted and funds expended in compliance with applicable laws; Chapter 2.14 1 (4/120 e. revenues are being properly collected, deposited and accounted for; ff, resources, including funds, property and personnel, are adequately safeguarded, controlled and used in an effective and efficient manner; g. financial and other reports are being provided that disclose fairly and fully all information that is required by law, that is necessary to ascertain the nature and scope of programs and activities and that is necessary to establish a proper basis for evaluating the programs and activities; h. there are adequate operating and administrative procedures and practices, systems or accounting internal control systems and internal management controls which have been established by management; and i. there are indications of fraud, abuse or illegal acts, which need further investigation. 3. The County Internal Auditor may also provide non-audit services (consulting) that are not covered by governmental auditing standards. Non-audit services differ from audits in that the County Internal Auditors may a. Perform tasks requested by management that directly support the entity's operations; b. Provide information or data to a requesting party without providing verification, analysis or evaluation. These non-audit services should be approved by the County Administrator. The County Internal Auditor should continue to work independently (in fact and appearance) when performing non-audit services. The County Internal Auditor will decide and advise the County Administrator if the non-audit work may jeopardize independence and whether the work should be performed. 4. The County Internal Auditor needs to consider three general classes of impairments to independence- personal, external, and organizational. If one or more of these impairments affects the County Internal Auditor's capability to perform the work and report results impartially, that County Internal Auditor should either decline to perform the work, or in those situations because of a legislative requirement or for other reasons, cannot decline to perform the work, should disclose the impairment in their report. The County Internal Auditor should not perform management functions or make management decisions. Performing management functions or making management decisions might impair the County Internal Auditor's ability to perform audits of that or a related subject matter. 2.14.040. Internal Audit Schedule. At the beginning of each calendar (or fiscal) year, the County Internal Auditor shall submit a one to five- year audit work schedule to the Audit Committee for approval. This audit work schedule should incorporate information from multiple sources including the County Internal Auditor's assessment of significant risks to the organization and input from Management, Audit Committee, and the Board of County Commissioners. The schedule shall include the proposed plan for auditing departments, offices, boards, activities, subcontractors and agencies for the period. The schedule may be amended. Additionally, the County Internal Auditor (for cause) may spontaneously initiate and conduct any other audit deemed necessary. Any significant changes (an expectation of scope of work changing by more or less than 150 hours) to the workplan for audit or non-audit projects should be approved in advance by the County Administrator and, except in cases of emergency, the Audit Committee. In the selection of audit areas and audit objectives, the determination of audit scope and the timing of audit work, the County Internal Auditor should consult with external auditors so that the desirable audit coverage is provided and audit effort is properly coordinated. Chapter 2.14 2 (4/124-) 2.14.050. Funding. The County shall provide sufficient funds to enable the County Internal Auditor to carry out the responsibilities specified herein subject to annual appropriation by the BOCC Getfflty Budget . 2.14.060. Access to Employees, Records and Property. 1. All officers and employees of Deschutes County shall furnish the County Internal Auditor with unrestricted access to employees, information and records (including electronic/computerized data) within their custody regarding powers, duties, activities, organization, property, financial transactions, contracts and methods of business required to conduct an audit or otherwise perform audit duties. In addition, they shall provide access for the County Internal Auditor to inspect all property, equipment and facilities within their custody. A discussion of appropriate access should occur with County Counsel if access to documents is restricted by applicable law. 2. Further, all contracts with outside contractors and subcontractors shall provide the County Internal Auditor access to the contractually related financial and performance-related records; property, equipment and services purchased in whole, or in part, with governmental funds 3. If such officers, employees or contractors fail to produce the aforementioned access and/or information, the County Internal Auditor with the aide of County Legal Counsel may initiate a search (or obtain a subpoena) to obtain exhibit copies (physical or electronic) from computerized systems, book, paper or record of any such official or employee, or outside contractor or subcontractor, in accordance with state law or the applicable contract. 4. Subject to public records laws, the County Internal Auditor shall not publicly disclose any information received during an audit that is considered confidential by any local, state or federal law or regulation. The County Internal Auditor shall maintain the confidential status of information and records furnished by County officers and employ 2.14.070. Audit Reporting and Records. Each audit will result in a report containing relevant background information and findings and recommendations, and shall communicate results to the Board of County Commissioners, Audit Committee, and appropriate management. Subject to applicable public records laws, the report shall also be available for public examination. If certain pertinent information is prohibited from general disclosure, the audit report should state the nature of the information omitted and the requirement that makes the omission necessary. 2. The County Internal Auditor should follow state archive guidelines as appropriate and as identified under OAR 166-150-0005(4) (currently - a retention schedule of 10 years). 3. The County Internal Auditor should periodically report to the Audit Committee (and Board of County Commissioners) on the work performed and any significant findings, which have not been fully addressed by management. 4. The County Internal Auditor shall follow-up on audit recommendations, as practical, to determine if management is implementing corrective action as identified in their response to the audit report findings and recommendations. The County Internal Auditor may request periodic status reports from auditees regarding actions taken to address reported deficiencies and audit recommendations. Chapter 2.14 3 (4/124-) 2.14.80.Contract auditors, consultants and Experts. Within budget limitations and approval by the County Administrator, the County Internal Auditor may obtain the services of Certified Public Accountants, qualified management consultants, or other professional experts necessary to perform auditor duties. An audit that is performed by contract must be conducted by persons who are independent of the governmental unit and its officers. The County Internal Auditor will coordinate and monitor auditing performed by public accounting, professional experts, or other organizations employed under contract by Deschutes County. 2. The County Internal Auditor may participate with the Audit Committee in the selection of qualified finalists for the provider of Deschutes County's annual financial audit. The Audit Committee shall select a provider from the finalists. This selection shall be presented to the Board of County Commissioners for review and approval. The process will follow Deschutes County's contracting processes. 2.14.090. Quality Assurance Reviews. 1. The audit activities of the County Internal Auditor's office shall be subject to quality review in accordance with applicable government auditing standards by a professional, non-partisan objective group (such as the Association of Local Government Auditors (ALGA)). A copy of the written report of this independent review shall be furnished to the Audit Committee and the Board of County Commissioners. This report shall be available to the public. 2. The quality control review shall determine compliance with government auditing standards and the quality of the audit effort and reporting, including: a. general standards such as competence, professional judgment, and quality assurance; b. fieldwork standards such as planning, supervision, and evidence; and c. reporting standards such as report content, timeliness and distribution. 3. The County shall reimburse the costs of the quality control review team from funds budgeted in the County Internal Auditor's budget. Within available time constraints, the County Internal Auditor may reciprocate with other organizations by participation in quality control teams. (Ord. 2005-014 §1, 2005) Chapter 2.14 4 (4/124.) Chapter 2.15. COUNTY AUDIT COMMITTEE 2.15.010 Authority. 2.15.020. Composition. 2.15.030 Meetings. 2.15.040. Responsibilities. 2.15.010. Authority. A. The Board of County Commissioners ("Board") hereby establishes the Audit Committee as an advisory committee. The committee shall advise the Board and County Administrator on significant audit matters including, but not limited to: 1. The selection, compensation, and removal of external auditors hired to audit the financial statements for the County and its related entities; 2. Consultation with the County Administrator or Board regarding the appointment or dismissal of the County Internal Auditor should include a quorum of the public members of the audit committee; 3. Increases and decreases to the requested budget for the internal audit program; and 4. The work plan for internal audits performed under DCC 2.14.040. 2.15.020. Composition. A. The audit committee shall be comprised of not less than seven or more than nine members appointed by the Board. B. Each member shall be appointed to serve a term of two years. Upon initial formation of the committee, the Board may appoint any member to a shorter term. A member may be appointed to more than one term. The Board may remove a member of the committee at any time. In the event of a vacancy on the committee the Board shall, as soon as practicable, appoint a person to serve the unexpired portion of the former member's term. C. The committee shall consist of one (1) member county commissioner, two (2) county department head members, and four (4) to six (6) public members. The County Administrator shall be an ex-officio nonvoting member. D. A public member shall be a registered voter within Deschutes County. The chair of the committee shall be a public member and shall be selected by a majority of the public members. The chair shall serve a one-year term and may be selected for additional terms. If the public members cannot decide upon a chair, the larger committee shall decide. The chair shall preside over meetings, as well as provide input on topics for the agenda. 2.15.030 Meetings A. The audit committee shall meet as the committee deems necessary. A quorum shall constitute a majority of the members appointed. Vacant positions shall not be considered in determining whether a quorum exists. Minutes shall be prepared in accordance with the Oregon Public Meeting Law. The committee may require certain County management attend meetings to address reports being discussed. Auditee departments will be invited to meetings where their internal audit report is discussed. B. A department head audit committee member shall not vote on an issue relating to an audit directly pertaining to his or her department. If there is any question as to whether audit committee members should recuse themselves from a vote, the committee should vote to determine whether the member should recuse himself or herself. Chapter 2.15 1 (_4/124.) C. The County Internal Auditor shall facilitate and coordinate such meetings, as well as provide ancillary support to the committee, as time permits. 2.15.040. Responsibilities. Responsibilities of the Audit Committee include: A. Overseeing the independent audit of the County's financial statements, including: 1. Overseeing the selection, renewal or removal of the independent external auditor by making a recommendation to the Board for final approval; 2. Meeting with the external auditors during planning of the audit, presentation of the audited financial statements, and discussion of the letter to management on recommendations; and 3. Overseeing the resolution of audit findings in, areas such as internal control, legal and regulatory compliance, and ethics. B. The committee shall work to assure coordination between the internal and external auditors, management, the County Administrator and Board. C. The audit committee shall ensure the internal audit program performs its function. The committee shall: 1. Review the internal audit ordinance (DCC 2.14) at least every other year; 2. Review proposed internal audit work plans and make recommendations concerning internal audit projects; 3. Review the budget and staffing levels of the internal audit program (DCC 2.14.050); 4. Review internal audit reports and other communications developed for the County; 5. Review and provide input on internal audit program goals; and 6. Review any quality assurance reviews created pursuant to DCC 2.14.090. 7. Discuss and provide input on the County Internal Auditor's performance review each year. D. The committee shall make appropriate recommendations concerning the internal audit program based upon the reviews that it conducts pursuant to subsection C of this section. E. The committee shall make an annual report to the Board summarizing the committee's activities and recommendations. The report may be delivered at an audit committee meeting attended by the Board or may be scheduled for a regularly scheduled meeting of the Board. F. The committee shall perform other activities related to this chapter as requested by the Board. (Ord. 2009-011 § 1, 2009) (Ord. 2008-002 §1, 2008) Chapter 2.15 2 (_4/124-) From: M Shadrach Sent: Thursday, September 13, 2012 7:53 PM To: Tammy Baney; Alan Unger Cc: Erik Kropp; Tony DeBone; Gayle McConnell; David Givans Subject: Audit Committee Recommendation Tammy and Alan, The Deschutes County Audit Committee met today and voted to recommended changes to the Internal Audit and Audit Committee Ordinances. I discussed these proposed changes individually with you on June 26. Erik Kropp is expecting to discuss the proposed ordinance changes with you at the next working session of the Commissioners scheduled for September 24. At our Audit Committee today, there was some discussion about waiting to take action on the recommendation until a new County Administrator is hired. The proposed Ordinance changes are largely to help assure the independence of the work of the County Internal Auditor (in fact and in appearance to help assure unbiased internal audit recommendations to enhance County operations). Therefore, linking a Commissioner policy decision to the hiring of a new County Administrator does not seem logical to me. The proposed ordinance changes have been well researched and discussed. I suggest that the Commissioners act on the Audit Committee proposed Ordinance recommendations within the next 30 days, if possible. I would be glad to address any questions or suggestions from the Commissioners. Best Regards, Mike Shadrach Deschutes County Audit Committee Member County Internal Auditor Independence Issue Current Ordinance: 2.14.010 Appointment of County Internal Auditor. The County Internal Auditor shall be appointed by and serve at the pleasure of the County Administrator in consultation with the Audit Committee and the BOCC. Recommendation by the Peer Review: We recommend the Audit Committee and BOCC consider modifying the language in the County Code to specify that the Audit Committee and the BOCC must both approve the removal of the Internal Auditor to reduce the risk of impairments that may restrict or interfere with the Internal Auditor's work. Revised Proposal to change 2.14.010 Chapter: 2.14.010 Appointment or Dismissal of the County Internal Auditor The County Internal Auditor shall be appointed or dismissed by the County Administrator in consultation with a quorum of the public members of the Audit Committee and a majority vote of the BOCC. Reasoning for new language: 1. Greatly strengthens the independence of the Internal Auditor when appointment and dismissal requires a vote of the majority of the BOCC. 2. The consultation provision required with a quorum of the public members of the Audit Committee provides additional independent input for the BOCC (expected before the BOCC vote on the Internal Auditor appointment/dismissal). 3. Vote of the Audit Committee not required because the Committee role is advisory. Requiring approval of the Audit Committee for Internal Auditor appointment/dismissal expands the Committee's role beyond an advisory role to the BOCC. 4. Internal Auditor role is unique and requires as much independence as possible. Best practices call for the independent auditor to report directly to an Audit Committee or other Governing Board. To: Deschutes County Board of Commissioners DeBone, Baney and Unger From: Scott Johnson, Deschutes County Health Services Hillary Saraceno, Deschutes County Children & Families Commission Date: September 11, 2012 Subj: County Health & Human Services: Organizing for the future in line with State changes Background - Changes in state laws, policies and priorities are resulting in a reform of Oregon's health and education systems. The health changes include development of coordinated care organizations (e.g. PacificSource) and our region's Health Council and Health Board. Education reform reframes the work into a comprehensive early childhood - K12 - and higher education system led by the Oregon Education Investment Board (OEIB). The OEIB system includes development of a new Early Learning Council (ELC) and new Youth Development Council (YDC), with area "hubs" to better serve and support higher risk children and families. While the 2013 Legislature is expected to define the ELC and YDC work more precisely, it is clear that regional hubs will emerge and that our resources for young children and youth services will be linked to this effort. It is also clear that Oregon's Commission on Children & Families system, as currently constituted, will end. Locally, we have an opportunity to reorganize our efforts and assets toward these new systems in a focused and complementary fashion. Our preliminary recommendations are that we • Reorganize and possibly merge our current County departments to align with the State changes, focusing on efficiency, effectiveness and sustainability and with an emphasis on prevention. • Provide specific policy and administrative suggestions to you by December 2012. If supported, they would be reflected in our FY 14 budget and staffing plan. • Develop recommendations that align with the CO Health Board interest in serving as the ELC and YDC hub in consultation with Jefferson and Crook county groups. • Link the health and education agendas for three reasons: 1. efficiency 2. children's health is a determinant of educational success and 3. educational attainment correlates with improved health. Guidance from the Board of Commissioners? • Are you receptive to our joint effort to prepare recommendations in consultation with Erik? • Do you have any specific direction regarding what you would like to see? • Do you support a continuing focus on prevention and community outreach? A role for citizen advisory group? • Do you support linking the County's health and education efforts? C. 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