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2014-600-Minutes for Meeting December 15,2014 Recorded 12/31/2014 DESCHUTES NANCY BLANKENSHIP,F RECORDS COUNTY CLERK CJ 201400 COMMISSIONERS' JOURNAL 12/31/2014 08;11;38 AM I1IIJIIIIIuhIHIuhIIII III 2 -600 •l``�TEa c Oil lir F 4G cuG a Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF WORK SESSION DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, DECEMBER 15, 2014 Present were Commissioners Tammy Baney, Anthony DeBone and Alan Unger. Also present were Tom Anderson, County Administrator; Erik Kropp, Deputy County Administrator; David Doyle and Laurie Craghead, County Counsel; and, for a portion of the meeting, Mary Anderson and Steve Gunnels, District Attorney's Office; D.A.-elect John Hummel; Wayne Lowry, Finance; David Givans, Internal Auditor; and two other citizens, including media representative Claire Withycombe of The Bulletin. Chair Baney opened the meeting at 1:00 p.m. 1. District Attorney's Office Staffing Request. Deputy District Attorneys Mary Anderson and Stephen Gunnels requested an additional Deputy D.A. position. They were accompanied by John Hummel, D.A.-elect. They have had no new ones since 2008 while the County population has greatly grown and the need has increased. The local police agencies have added officers as well. In 2011, they filed 5,070 criminal cases with the courts, and this year it has gone up over 10% beyond that. The cases are becoming more complex with the increased use of technology. They need the additional help as they are seeing increased filing time as well as the additional time needed for most cases. The quality of life crimes may not get the attention they need, and it is important to address these offenders early. Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 1 of 9 Pages They also took over child support cases and civil commitment proceedings recently. An additional D.D.A. will partially make up for two D.D.A.'s being on leave at this point, one for an extended period of time. There are letters from law enforcement encouraging this additional position as being necessary and important. Commissioner Unger noted that there have been requests for this in the past but not the paperwork to back up the request. Commissioner DeBone said that he knows the population has increased, there are more law enforcement officers on the street, and that additional workload needs to be addressed. Chair Baney wants the process to be progressive with specialty courts and dealing with quality of life crimes. She feels they have done what they can but recognizes they need the additional help. Tom Anderson said this would add about $150,000 a year to the D.A.'s budget. Space is not an issue at this point. He supports the request and has had a number of conversations about this in the past, and had hoped for statistical backup. There is a lot of anecdotal information that the need is there. It would be hard to hire someone on a temporary basis. Once there is more history with the new system and have the tracking in place, this will help reinforce the addition. Chair Baney said the data is important, but they run very lean and that does not allow much for adjustments if situations change or for spikes in the workload. Commissioner Unger agreed, and noted that the Redmond Council developed a ratio regarding calls for service showing why there should be an adjustment. Ms. Anderson stated that Mr. Anderson has been helpful in guiding them as to what data is important to track and how to show this in the future. Commissioner DeBone would like to be kept informed of the types of cases they are dealing with, and when certain problems are becoming more extensive than others. Mr. Hummel said that the process was started by his predecessor, who has been helpful during the transition. Mr. Anderson stated that there would be a budget adjustment document for the Board to approve in the near future. Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 2 of 9 Pages 2. Discussion and Update of Procedures Report for Brightside Animal Shelter. David Givans, and Chris Bauersfeld of Brightside Animal Center came before the Board. Erik Kropp reviewed the history of the COCC purchase of property next to Brightside. An outside audit was done as part of the arrangement. Ms. Bausersfeld said they appreciate someone coming from the outside to show where they needed to make improvements in reporting and processing information. They have hired an experienced bookkeeper who is now in training. This should help them get to what the auditor feels is necessary. In the past, it has been handled by volunteers, but it needs to be more consistent. They have recruited several key volunteers for their board, including an attorney, a banker and an investment councilor/CPA. This should help with covering the areas that need more oversight. The current board has not been strong in doing recruitments, so she has been pursuing this herself. Cash handling was found to be acceptable, and they have security cameras where appropriate. She reviews the bookkeeper's deposit records. They are almost ready for all financial transactions to be handled with a certain software program that provides for checks and balances. They are also tracking mileage and gasoline purchases and reimbursements. They anticipate the bottle and can program should result in at least $50,000 annually. They get recyclables from the Fair & Expo for the events there. There are some unpaid funds that are not reconciled. They will follow up again to see if the checks were received or if they need another. It can be gifted also. The accountant recommended there be two signatures on each check, so they will still allow up to $200 without two signatures. There are only three total signers on the account so it is hard to get the second signature. They will add two more. Accounts receivable from unpaid fees for RV parking and low-income emergency situations are being addressed. They are working on payroll issues involving AFLAC and how expenses were detailed. A capitalization schedule has been recommended, so she has asked the board to revisit this when they revamp the bylaws. Board members change and everyone needs to be on the same page. Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 3 of 9 Pages They now have an experienced I.T. person handling their website and social media. Some are interested in increasing their capital campaign and events. They have a solid group but she hopes to have it up to 12 or 14 members so they can have sub-committees. Their goal now is donor relations and asset accumulation. They are getting calls about twice a month from people who are putting them in their will. Chair Baney asked about the loss figure of$345,000 shown in the executive summary. Brightside profit/loss for 2013 and 2014. Ms. Bauersfeld stated they had the building shown as over $600,000 and it sold for half of that, so they have to show the loss somehow. Commissioner DeBone asked how big the organization is. Ms. Bauersfeld said that it is small, maybe $1 million, with 22 employees at the shelter and 10 at the thrift store, but not all are full-time. That would be 16 and 5, and they are not benefited, at 36 hours a week. Commissioner DeBone asked if they are moving forward. Ms. Bauersfeld feels they are moving more forward, and are up about 20% in donations. The rescued dog resulted in three donations of$5,000 each. Most donations are $50 to $100. They send out `ask' letters every few months. She is working on a new board to get them more focused on donations and fiscal health. They have employees to handle the day-to-day issues, but in the past, the board has been too involved in operations. Ms. Bauersfeld said that some board members have gotten into the operations part too much and she has to limit their involvement. Commissioner DeBone said he has been involved in small groups that struggled in that way, with all volunteers, some of whom get too involved and then have to try to figure out how to pay the bills. They need to know how much of their operation depends on the `hope factor'. Ms. Bauersfeld said that some want to focus on a particular dog or a policy, but the board meetings have to look at the bigger picture. Chair Baney appreciates the fact they welcomed the audit being done. The County wants to make sure they are successful. Ms. Bauersfeld said it is a tool for them to work from and they can enhance it. This sets a baseline so they know what needs improvement. Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 4 of 9 Pages Commissioner Unger feels this is a positive step, as it was a challenge in the past with more expenses than income. Wayne Lowry added that he met with auditors to scope the project, and is comfortable with the results. David Givans looks forward to changes, with the biggest one getting a treasurer on their board. The County looks forward to seeing consistency and continuity. Ms. Bauersfeld stated that the thrift store is run well, and has gone from sometimes just $12,000 a month in revenue to $30,000 or more. They are working with various groups such as the Sparrow Club. She added that the ice is melting slowly between HSCO and Brightside, and Brightside offered to help HSCO with the recent dog rescue. They are also doing well with the feral cat coalition of HSCO, Brightside and BSNP. They are hoping to get a person to take this group over to free up the shelter managers. The COCC students start in January, and then will be at Brightside to help with chores and additional work as they learn. Everything appears to be ready to go with the building. Meetings will take place between the County, the auditor, CPA and shelter staff to make sure the reporting is handled properly. Commissioner DeBone left the meeting at this point due to another meeting commitment. Ms. Bauersfeld also left at this time. Erik Kropp said that the budget projections do not always match the actual revenue, but that remains to be seen. Mr. Anderson stated there was nothing too terrible in the audit, but room for improvement. Mr. Lowry said that focusing on the financial aspects by a new board is what is most important. Mr. Givans added they are not out of the woods yet, but he feels they are working towards it and it is important to have a staff bookkeeper. Chair Baney said she likes that they are focusing on a stronger board and hopes they will be more responsible. Mr. Lowry stated that his main concern is repayment of their outstanding loan, and they should not receive any more County loans. Mr. Kropp said that the loan is due by December 2015 so it will likely have to be revisited. Much depends on payments from the trust that is dedicated to Brightside for this purpose. Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 5 of 9 Pages 3. Finance/Tax Update. Mr. Lowry stated that they have a high portfolio but much is from property taxes, which are being distributed to the districts. They are in compliance with the pool. Commissioner Unger asked what the LGIP does with the money while they have it. Mr. Lowry said they purchase short-term securities. State agencies have money in the pool as well, and it is very stable. There are 41 FTE still vacant, and many of those are at 911, the Sheriff and Health. This number has been much higher in the past. The tax collection rate was higher than anticipated, so the districts will show additional revenue for this time of the year. It is at about 97%. The Sheriff's revenue will be higher than budgeted, as will Community Development. Health is ahead; Behavioral Health shows a positive but they have a lot of vacant positions. Chair Baney said there are a lot of new clients so this does not seem right. Mr. Anderson stated there is a high turnover in staffing. Chair Baney noted that with health care change, it is hard to anticipate revenue. Mr. Lowry said it will take a year or two for this to stabilize. Regarding Road, SDC's are being used for Skyliners and Alfalfa Market Road projects. The Early Learning Hub fund shows an increase in federal grants. Chair Baney said some grants should be coming in from the State, so this needs to be watched. It should go through WEBCO who will probably take a piece of it. Solid Waste continues to do well. Risk Management shows a higher workers comp claim amount, due to settling a large claim. Health Benefits is doing well and shows a positive balance at this point. Regarding the Fair/Expo fund, it is doing well, and the food/beverage arrangement has resulted in a positive balance. Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 6 of 9 Pages The jail project final check has been cut and is being held until there is certification that all the sub-contractors have been paid. Chair Baney asked about the credit for energy improvements. Mr. Lowry will find out if that is shown or whether it has even been received. Mr. Lowry asked for approval of the revised General Financial Policies. UNGER: Move approval of County Administrator signature. BANEY: Second. VOTE: UNGER: Yes. BANEY: Chair votes yes. The Investment Advisory Committee meets a couple of times a year. Patty Moss resigned due to retirement. She said that she did not feel the committee had much value. One member is Tom Anderson, and several have been on the committee for a while. Sonja Andrews had also resigned. Those two vacancies need to be filled. Commissioner Unger stated that previous Finance Manager Marty Wynne liked the support. Chair Baney feels it is done for good will and to exhibit public oversight. She asked how the current members feel. Mr. Lowry said the current members are ambivalent. However, he talks with bankers all the time and most of them are salespeople. He likes the idea of getting feedback from the committee members. The Board agrees that it is good to bring in people from the outside to enhance the public viewpoint. Mr. Lowry would like to be able to call on them for credible feedback. Mr. Anderson said there are ways the County can recruit for this committee. Mr. Lowry stated that the previous recruitment looked for specific types of members, involved in finance or banking. The Board said that Commissioner DeBone will represent the County. 4. Other Items. Mr. Anderson asked if the Board wants a facilitator for the initial goal-setting meeting of the Board. Commissioner Unger felt Ellen Waterston was helpful last year. Chair Baney said she felt that it was a learning experience for the facilitator as well. They are open to having her return. Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 7 of 9 Pages Mr. Kropp said that a bike repair station was set up on a place along the Twin Bridges Scenic Bikeway, but is on a County right-of-way. It was installed by a citizen. There needs to be a formal sponsor, however. He is working on a formal approval process and criteria for this station as well as others. UNGER: Move approval of the minutes listed on the business meeting agenda. BANEY: Second. VOTE: UNGER: Yes. BANEY: Chair votes yes. Bend Transit is looking for a facilitator. They have asked for a grant of$2,000 from the County to handle this. City of Bend is supposed to add funds, as is Park & Rec, COCC, and OSU. The Commissioners agreed to put in funds from their discretionary grant funds. Mr. Kropp will ask Commissioner DeBone if he will participate. Chair Baney stated it could be less than $2,000, so she will advise when she knows the amount. Commissioner Unger stated that there were concerns brought up at the Freight Advisory Committee meetings about new projects that may not be able to get past other agency barriers. Chair Baney said that it depends on whether they are of statewide significance. It needs to make sense. There is no way to know if some projects will move forward until all appeals are exhausted. Being no further items discussed, the meeting adjourned at 3:10 p.m. Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 8 of 9 Pages DATED this 6/ l Day of 2014 for the Deschutes County Board of Commissioners. Tammy :fey, Ch.R LZ/7' (\./.),d411-(-- Anthony DeBone, Vice Chair ATTEST: alam- Alan Unger, Commissioner Recording Secretary Minutes of Board of Commissioners' Work Session Monday, December 15, 2014 Page 9 of 9 Pages Al'ES Q G7G� aDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org WORK SESSION AGENDA DESCHUTES COUNTY BOARD OF COMMISSIONERS 1:00 P.M., MONDAY, DECEMBER 15, 2014 — note earlier time 1. District Attorney's Office Staffing Request — Mary Anderson and/or Steve Gunnels 2. Discussion and Update of Procedures Report for Brightside Animal Shelter— David Givans; Chris Bauersfeld 3. Finance/Tax Update — Wayne Lowry 4. Other Items PLEASE NOTE:At any time during this meeting,an executive session could be called to address issues relating to ORS 192.660(2)(e),real property negotiations;ORS 192.660(2)(h),litigation;ORS 192.660(2)(d),labor negotiations;or ORS 192.660(2)(b),personnel issues;or other issues under ORS 192.660(2),executive session. Meeting dates,times and discussion items are subject to change. All meetings are conducted in the Board of Commissioners'meeting rooms at 1300 NW Wall St.,Bend,unless otherwise indicated. Irvin'have questions regarding a meeting,please call 388-6572. Deschutes County encourages persons with disabilities to participate in all programs and activities. This event/location is accessible to people with disabilities. If you need accommodations to make participation possible,please call(541)388-6571,or send an e-mail to bonnie.baker@deschutes.org. 4f, �na J°I _ c cb C 'cc s --), V /I ..._� c7 bDI G I C j c `�O ° c` 1 1 � � � 1 I ' II Nlol1d _ I " I I R C� G` I X111� I I I --- II 1 ..)I I , V - v , ry ti v L ►1 III i 1 ' I I ' I I ..,_, , 44 , ,;,.. 1 , 1 1 1 1 i 1 „.... .... 1 , 1 1 ! a ....) .....z, f, 1 1 , 1 1 1 i i cu ,--.' .,‘I , •k. 1 Q �f- ". V I 0 `4.I I 'zI C!; I ' 1 I ■ 0.�- 1 I 1 'C ti O ! , zE cu let a L cp' I Z! lJ! Z 411 gI "� _J1 ,, Request: Add one DDA FTE as of January 5, 2015 Deputy District Attorney(DDA) staffing levels have been stagnant at the Deschutes County District Attorney's Office since FY 2008 when the number increased from 15 to 16. Workload from 2008 to 2014 has increased significantly based upon the increase in referrals from law enforcement and Deschutes County population growth. Deschutes County's population has increased by 30,000 in the past ten years and growth is expected to continue. In response to the population growth, we have seen an increase in the number of law enforcement officers in Deschutes County. We have also seen increased complexity of investigations due to the prevalence of electronic evidence (many cases now have cell phone and computer data as important evidence). More officers means more case referrals and more complexity means each case takes longer to prepare and present in court. We had 7,737 case referrals to our office in 2013 and we have had 12,137 so far this year. The District Attorney's Office also relieved county counsel of the responsibility for civil commitment proceedings adding to the DA's office workload. Our Deputy District Attorneys have reviewed over 600 peace officer/mental holds in 2014 and handled approximately 21 civil commitment hearings. Every month, Deputy District Attorneys lead or attend Multi-Disciplinary Team (MDT) meetings, such as Child Fatality Review, Elder Abuse, Sexual Assault Response, Crisis Intervention and Domestic Violence Council.These meetings are beneficial to the community and it is important that we participate, but they take over 150 hours of prosecutor time away from the office, every year.The state-mandated MDTs alone require the office to donate more than 100 hours of Deputy D.A.time per year. In December of 2014 the District Attorney's Office will be down one position due to Administrative leave. The combination of additional responsibilities,growth and the loss of an experienced attorney for 6 months results in an immediate need to add one Deputy D.A.to continue to meet our current level of service to the community and avoid any reduction in public safety. Some District Attorney's Offices have chosen to forego prosecution of some "low level" crimes, such as shoplifting and the possession of small amounts of methamphetamine or heroin.These crimes dramatically affect the quality of life in our community and it would be a very undesirable way to try to solve the problem. Population size significantly affects the number of violent and property crimes.' As our population increases,crime increases and the workload for the District Attorney's Office increases. Court filings are one measure of that workload: In 2011,we filed 5,077 cases with the courts; we are projected to file over 5,600 cases in 2014. 200 1 EMMI "5 1111111 1111 150 MI Population x1000 125 17 5 •#DDAS 50 If#DDA 25 Recommended 017 '7 2005 2010 2015 2020 Using historical data to review the number of DDAs required to complete the majority of the responsibilities of the District Attorney's Office based upon population alone,the BOCC and the Budget Committee were on track when the number of DDAs was increased to 16 in 2008. By population alone, the number of DDAs should increase with the population to 19 by 2015. As the community grows, our local law enforcement is growing, as well. The Sheriff's Office, Bend Police Department, Redmond Police Department and Sunriver Police Department all expect to either add personnel or to deploy their personnel in such a way that case referrals to the District Attorney's Office will increase significantly in coming years. 'M.B.Chamlin&J.K.Cochran/Western Criminology Review,5(2)119-130(2004) DESCHUTES December 15, 2014 COUNTY SHERIFF' S OFFICE Deschutes County Commissioner Alan Unger 1300 NW Wall Street LARRY BLANTON Bend, Oregon 97701 Sheriff Unger, Commissioner Un 63333 W.Hwy.20 Dear g Bend,OR 97701 I support the addition of a deputy district attorney position. Bend Dice Deschutes County continues to grow and the forecast is for 541,388.6655 continued growth. Fax 541,389.6835 Administration The District Attorney's Office has not added a deputy district attorney 541.388.6659 position since 2008. Fax 541.389.4454 Case filings are up from 2013, and are forecast by the District 51340 x ghwa 97 Attorney's Office to increase by over ten per cent since 2011. La Pine,OR 97739 541.536.1758 Fax 541.536.5766 In addition, technolo gy continues to evolve, and an increasing number of criminal cases have electronic evidence, which increases Sisters Office the time to investigate and prosecute. The DA's Office has also 703 N Larch St.,Suite C assumed handling civil commitment cases as well. 541.549.2302 Fax 541.549.1762 The addition of a deputy district attorney will enable the DA's Office Ter ebonne Office to address the increased workload and continue its prosecutorial 8154 11th Street,Suite 3 Terrebonne,OR 97760 function and protect the community. 541.923.8270 Fax 541.548.7589 Special Services/SAR 541.388.6501 erely, Fax 541.388.0793 Emergency Services 541.617.3303 Fax 541388.0793 Adult Jail 541.388.6661 Fax 541.330.9162 c.0„ . „, F ., 0 „, i'IiU,,'` _•• r Deschutes County Commissioners ,,_. * 1300 NW Wall Street Bend,Oregon 97701 December 15,2014 , 9 1[111) oS Dear Commissioners, POLICE 555 NE 15"STREET I support the District Attorney's proposal that the county add a deputy DEPARTMENT PO Box 118 district attorney position. BEND.OR 97701 [541]322-2960 TEL The District Attorney's Office has not added a deputy district attorney position [541]312-1934 FAX WWW.CI.BEND OR.US since 2008,while the Bend Police Department has added 12 additional police positions. As the Bend Police Department moves forward with the implementation of the Community Response Team,we will be focusing on quality of life issues,increasing our enforcement of Oregon statutes,and will be JIM CLINTON forwarding more case to the already overworked District Attorney staff. Mayor JODIE BARRAM The community we serve expects the District Attorney's Office to be able to Mayor Pro Tern prosecute those cases in order to ensure public safety and maintain our quality of VICTOR CHUOOWSKY life. I believe the citizens of Deschutes County further expect us to find alternative City Councilor ways to address key issues such as dealing with our returning veterans with a DOUG KNIGHT Veteran's Court,addressing the interface between the courts and the mentally ill City Councilor by expanding our Mental Health court, and to continue to support such successful SALLY RUSSELL projects as the Drug Court. All this takes staffing. City Councilor An additional deputy district attorney will allow the District Attorney's Office to City Councilor uncilo exercise its role in the criminal justice system and better protect the community. City Counci/or p� Our District Attorney's office will soon be under new leadership, I would suggest SCOTT RAMSAY we give them the staffing they need to make them more effective and responsive City Councilor g to our citizen's ds. ERIC KING City Manager JIM PORTER Police Chief Jim Porter Chief of Police City of Bend Police Department �a '" Z Date: December 11, 2014 To: Board of Commissioners From: Erik Kropp, Deputy County Administrator Re: December 15, 2014 Work Session Agenda.Item: Brightside Agreed Upon Procedures Report On the Board's December 15,2014 Board Work Session is a discussion of the report from Harrigan Price Fronk&Company on the Brightside Animal Center(also known as Redmond Humane Society). As background, Brightside Animal Center entered into a partnership with Central Oregon Community College(COCC) for the college to operate its Veterinary Technician program at Brightside. At the request of Brightside, Deschutes County sold the Event Center to COCC in the spring of 2014. As part of the agreement to sell the Event Center,the County hired Harrigan Price Fronk& Company to work with Brightside to review and evaluate the financial position of the animal shelter and aid the organization in its financial accounting. The agreed upon procedures covered the following topics: 1. Internal control over revenue from cash handling at the thrift store and shelter. 2. Monthly and fiscal period closing procedures to assure accrual accounting is properly developed. 3. Evaluate the current accounting presentation. 4. Analyze and present common financial ratios and analyses for the statements as compared to peer organizations. 5. Assist Brightside in developing standard reporting processes through QuickBooks. Harrigan Price Fronk&Company has completed the review and issued its report. Staff from Brightside will attend the work session and discuss how the organization plans to implement the recommendations from the report. Implementation of the recommendations will strengthen the financial procedures at Brightside and improve the monthly financial reporting to the County. c: Chris Bauersfeld, Brightside Animal Center Executive Director Mark Crose, Board President, Brightside Animal Center 1 I � HARllICA N & CII. LL ' 1 CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 1 1 DESCHUTES COUNTY ' HUMAN-E SOCIETY OF REDMOND dba BRIGHTSIDE ANIMAL CENTER JUNE 30, 2014 1 I I I I I I I DESCHUTES COUNTY I HUMANE SOCIETY OF REDMOND dba BRIGHTSIDE ANIMAL CENTER IJUNE 30, 2014 I I I I I I I I I I I MINN NN & CO. [[ CFH111-IEU PUBLIC ACCOUNTANTS & CONSULTANTS I I IJohnP.Ilarrigan.CPA INDEPENDENT ACCOUNTANTS' REPORT Wesley B.Price III.CPA ON APPLYING AGREED-UPON PROCEDURES I Candace S.Fronk.CPA Kara L.Pardue.CPA Karen C.Anderson,CPA Deschutes County tDeschutes County, Oregon We have performed the procedures enumerated below, which were agreed to by I Deschutes County and the Humane Society of Redmond dba Brightside Animal Center (HSR), solely to assist the specified parties in the evaluation of the financial position of the Humane Society of Redmond dba Bright Side Animal Center and to aid HSR in Ibeing thorough and accurate in its financial accounting. HSR management is S75 SW Colorado Suite zoo responsible for HSR's accounting records. This agreed-upon procedures engagement Bend,OR97702 was conducted in accordance with attestation standards established by the American ITe11541)382-4791 Institute of Certified Public Accountants. The sufficiency of these procedures is solely Fax(541)388-1124 the responsibility of those specified parties in the report. Consequently, we make no www.bendcpa.com representation regarding the sufficiency of the procedures described below either for email(n?bencicpa.com the purpose for which this report has been requested or for any other purpose. I Executive summary of results and recommendations I HSR needs an experienced bookkeeper to perform the bookkeeping functions currently done by the executive director, including payroll, accounts payable, accounts receivable and bank reconciliation functions, We believe this is crucial for providing I improved segregation of accounting duties. In many areas, the executive director is the one who authorizes transactions, has control of the assets and handles the recordkeeping. In order to safeguard assets and provide reliable financial information, I these duties need to be performed by separate individuals. Until a bookkeeper is hired, HSR should consider outsourcing payroll, having a board member sign checks, having the assistant director or a board member prepare the bank reconciliations or have a board member review the bank statements and reconciliations. IAll balance sheet accounts should be reconciled on a monthly basis by the bookkeeper with general journal entries recorded as necessary to correct balances, including the I loan to the County. Bank reconciliations, accounts receivable aging reports and accounts payable aging reports should also be reviewed by the executive director along with the monthly financial statements and provided to the board. IIn addition to more detail on the recommendations above, the attached findings include the following recommendations which we believe are important but of less priority than Ithe two areas above: Cards for the commercial card-lock system should be secured when not in use and fuel 1 usage periodically compared to mileage records of authorized vehicles. I 1 ' Deschutes County Deschutes County, Oregon Page 2 1 Stale outstanding checks amounts should be remitted to the Division of State Lands in accordance with state law. A capitalization policy should be established and followed and adjusting entries related to fixed assets should be recorded. Our procedures and findings are as follows: ' 1. Gain an understanding of processes for internal control over revenue from cash handling at the HSR thrift store and shelter. Develop appropriate ' recommendations based upon observations and anticipated/expected controls. The results and findings (if any) of this procedure are documented and attached ' to this report at "Exhibit 1" pages 1-2. 2. Gain an understanding of monthly and fiscal period closing procedures to ' assure accrual accounting is properly developed. Inquire and review should include (but is not limited to): ' a. Bank reconciliations. b. Payroll liabilities and payroll taxes (reconcile and determine that they are current). c. Assess cutoff procedures for the accrual accounting. ' d. Review established chart of accounts and segment reporting setup. e. Recommend journal entries to correct any identified accounting issues. Any accounting procedures and practices found to be deficient should be ' addressed. The results and findings of these procedures are documented and attached to this report at "Exhibit 2" pages 1-5. 3. Identify any issues with the current accounting presentation that should be addressed. a. For example, non-recurring non-cash revenues may have been improperly included in the operational income statements. ' The results and findings of this procedure are documented and attached to this report at "Exhibit 2" page 4. 4. Analyze and present common financial ratios and analyses for the statements (based on the CPA's judgment) that would compare them to their peers. Identify any potential issues. Common financial ratios and analyses of same are documented and attached to this report at "Exhibit 3" pages 1-2. f111111I1\ 1111ICf FI1II\h&CII.IIP r Deschutes County Deschutes County, Oregon Page 3 • 5. Assist HSR in developing the standard reporting process through QuickBooks for financial information to be provided to Deschutes County as well as the HSR Board, including: or a. Comparative balance sheets. b. Comparative income statements with budget information (YTD and so monthly). I. With sufficient detail for major programs and expense categories. c. Cash flow statements. d. Identifying and providing explanatory comments with statement to point out important topics. Samples of proposed reports and sample explanatory comments for HSR to use in presentation to Deschutes County as well as the Board of Directors of HSR, are attached to this report at "Exhibit 4" pages 1-7. Arrangements for meeting with HSR Executive Director and staff for training purposes will be made upon completion of ■r these agreed upon procedures and the acceptance of report set-up as proposed. We were not engaged to, and did not conduct an audit, the objective of which would be the expression of an opinion on the financial statements, internal control or accounting ✓o records. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. wr This report is intended solely for the information and use of Deschutes County and the Humane Society of Redmond dba Brightside Animal Center and is not intended to be and should not be used by anyone other than those specified parties. HARRIGAN PRICE FRONK & CO. LLP Certified Public Accountants & Consultants rr B Y ICJ C andace S. Fronk a partner or September 15, 2014 ■r o r o r ■r Ni1It11I1M ICI{IU II{ONIti&CO III' DESCHUTES COUNTY ' HUMANE SOCIETY OF REDMOND dba BRIGHTSIDE ANIMAL CENTER CASH HANDLING JUNE 30, 2014 THRIFT STORE —CONTINUED ICredit Card/Debit Card receipts— Payments received through credit and debit card transactions are tracked through the iPad register system. The system generates a log of these types of transactions that ITeresa utilizes to reconcile the day end total receipts. Bank deposits are prepared at the end of each day and deposited on the following day. Deposits and the cash till are locked in a safe in the business development manager's office. Four employees (not volunteers) I have access to the safe and the cash till keys. This system is in place so that there is always someone available that can access the cash for morning set up and evening closing. I Deposit information is subsequently given to the executive director who verifies all bank receipts match the deposit ticket. The executive director currently is in charge of entering all transactions into the QuickBooks accounting software and utilizes these bank receipts and credit/debit card logs for entering Thrift Store 1 information into the accounting software. The Thrift Store utilizes a security system throughout the store. There are two cameras located in the main Istore area, one of which is set to directly observe the cash register area. We did not have any specific recommendations for changes in cash handling operating at the Thrift Store. IGAS CARDS HSR also utilizes a commercial card-lock system for fuel for its vehicles. We recommend that the I card be secured when not in use. The odometer reading on the vehicles should be recorded at least quarterly and the miles per gallon driven calculated and reviewed for reasonableness to help ensure fuel is only purchased for authorized vehicles. 1 I I I I Exhibit 1 Page 2 1 DESCHUTES COUNTY I HUMANE SOCIETY OF REDMOND dba BRIGHTSIDE ANIMAL CENTER I FINDINGS JUNE 30, 2014 I 2. Gain an understanding of monthly and fiscal period closing procedures to assure accrual Iaccounting is properly developed. Inquiry and review should include (but is not limited to): a. Bank Reconciliations: A review of the bank reconciliations for all accounts, as of June 30, 2014, was performed. All bank I reconciliations reviewed were performed in a timely manner and each reconciliation contained the date and initials of the person performing the reconciliation. The executive director currently performs the bank reconciliations and also approves and pays vendor invoices. The executive I director has the ability to sign checks, up to $200, without a second signature from a board member required. There is currently no review of the reconciliations performed. Currently, HSR is without a bookkeeper and without a Board Treasurer. In the past, the Board Treasurer had been reviewing all I the bank reconciliations, also when HSR is fully staffed with their bookkeeper, this person performs the bank reconciliation and posts all accounts payable activity into the accounting system after approval by the executive director. It appears that the executive director has a good understanding I of segregation of duties for accounts payable and bank reconciliation procedures but by design is unable to execute them properly until such time as these vacant positions are filled. We recommend that until such time as these positions are filled, the Executive Director utilize Iher assistant to perform the bank reconciliations and request another Board Member to perform the review. Bank reconciliation review should include agreeing the statement balance on the reconciliation to the bank statement, agreeing the reconciled balance to the I balance sheet, reviewing uncleared items for anything old or unusual and skimming the original bank statement and cleared check images for altered or unusual items. Also in the absence of a bookkeeper, we recommend that all checks of any amount be signed by both the I executive director and a board member to assist in strengthening segregation of duties and deterring misappropriation of assets. I The main operating account bank reconciliation for the Shelter shows several old checks ranging in date from 2011-2013. Per Oregon Revised Statutes all outstanding monies unclaimed should be turned over to the State Land Board unclaimed property division after a three year period. We have I proposed an adjusting journal entry (AJE #5) to move the total of these outstanding items into a State Lands payable account on the balance sheet. 1 We recommend that HSR perform a review of the outstanding items to ensure their validity. Once items are determined as valid outstanding items any amounts over three years in age should be submitted to the State Lands Board unclaimed property division. HSR should implement procedures to ensure all unclaimed funds reaching three years are submitted in a I timely manner as required. Rules regarding unclaimed property submissions are published at www.Oreoon.Gov.\ Department of State Lands\Unclaimed Property. Items between six months and three years old should be reviewed for potential contact with the payee and/or reissuance. Ib. Payroll liabilities and payroll taxes (reconcile and determine that they are current). QuickBooks activity showed that the payroll liability accounts were not cleared correctly when the I liability payments were processed through the system resulting in two liability accounts with opposite Exhibit 2 Page 1 I DESCHUTES COUNTY ■ HUMANE SOCIETY OF REDMOND �I dba BRIGHTSIDE ANIMAL CENTER FINDINGS JUNE 30, 2014 I b. Payroll liabilities and payroll taxes (reconcile and determine that they are current) — Continued ' balances that approximately offset each other. Other small liability accounts and year end payroll tax submissions were reconciled to the payroll summary and reviewed for proper accrual. AJE#4 includes the proposed adjustments to correct these balances. Neither the executive director or prior bookkeeper had an adequate understanding of how the QuickBooks payroll system operated. Since the previous bookkeeper left, the executive director has been performing the payroll function. No review of the bi-monthly payroll is currently done; however, the Board receives financial information at each meeting wherein they review the budget to actual payroll expenses. Until such time as a competent bookkeeper can be obtained, we recommend HSR weigh the costs and benefits of outsourcing its payroll function. This may help with proper recording of the liability accounts and also add another level of segregation of duties to this function. Cl. Assess cutoff procedures for the accrual accounting. 111 Accounts payable: While HSR has no bookkeeper, the executive director has been performing the accounts payable function. She approves vendor invoices and enters the information to be paid into the accounting software. She also cuts the checks, has the ability to sign checks up to $200 without an additional signature from a Board member and performs the bank reconciliation. The executive director believed that all amounts listed in the accounts payable at June 30, 2014, were valid amounts owed by HSR. All accounts past due more than 90 days were shown in QuickBooks to have been paid subsequent to year end. A review of the accounts payable summary at year end and at July 30, 2014, was made noting that only one account in the 91+ day category remained outstanding. Nothing was noted in the outstanding accounts payable that would make us question the validity of the amounts owing. Until such time as HSR hires a bookkeeper,we recommend that review and approval of vendor invoices be performed by a Board member and that all checks require two signatures. This will ensure segregation of duties and a level of oversight over the accounts payable function. Also, we recommend that the executive director have her assistant perform the bank reconciliation which should be reviewed by a board member. Accounts receivable: While HSR has had no bookkeeper, the executive director has been performing the accounts receivable function, both billing and receipting. HSR accounts receivable are created from two sources, RV storage fees and fees charged to Shelter customers for services such as veterinary, spay/neuter, pet medications or euthanasia. RV storage fees are charged on a monthly basis and vary depending on the customer. Other credit is extended based on low income financial need. Financial need is established through application and is approved by the Executive Director. The patron has 90 days to pay the fees incurred. The executive director believed that a portion of the accounts receivable outstanding at June 30, 2014, was not valid as the prior bookkeeper did not always properly handle the incoming RV storage billing. Attempts to correct certain accounts created credit balances that were invalid. The HSR policy on outstanding receivables says that after 90 days HSR will contact the patron by phone requesting payment; also, a monthly statement is mailed. When the account becomes 180+ days Exhibit 2 Page 2 I DESCHUTES COUNTY I HUMANE SOCIETY OF REDMOND dba BRIGHTSIDE ANIMAL CENTER I FINDINGS JUNE 30, 2014 I C1. Assess cutoff procedures for the accrual accounting —Continued IAccounts receivable— continued past it is turned over for collection. HSR has not been writing off any accounts to bad debt expense Iin case it is collected later by the collection agency. The review of accounts receivable with the executive director included a comparison of accounts receivable at June 30, 2014, and at July 30, 2014, to ensure that any proposed adjustments were I appropriate and not made to accounts that received subsequent payments after year end reporting. Three RV storage balances appeared to be invalid and five account balances needed to be written off to bad debt expense. AJE #11-#26 are proposed to correct these balances. IWe recommend that HSR implement an allowance for doubtful accounts equal to at least their 180+ day outstanding accounts receivable. If subsequent monies are received from the 1 collection agency these should be recognized when received into a miscellaneous income account. Also, we recommend that all payments received on account, either through mail or paid in cash, be logged in on a daily basis by a shelter employee, other than the executive I director, and this log be kept with other HSR cash records to help create a trail for the incoming receipts on accounts. I C2. Fixed Assets A depreciation schedule has been maintained by HSR's tax accountant to track the cost basis and net book value of fixed assets, including the Event Center that was partitioned and sold in the current fiscal year to Central Oregon Community College. The balances in the fixed asset QuickBooks accounts did not match those balances listed on the depreciation schedule. Further, the accumulated depreciation account did not match the amount indicated on the schedule received. No entries had been made to any of the fixed asset QuickBooks accounts, except that of the Event I Center. Since the executive director did not know how to post the receipt of the cash from the sale, she had posted this directly to the asset account. AJE #7 is proposed to correct the balances in the fixed asset accounts and AJE #6 is proposed to properly record the sale of the Event Center. It I should be noted that the sale resulted in a significant loss to HSR in the fiscal year. The proposed AJE#6 reflects this loss. I The executive director indicated that, to her knowledge HSR did not have a capitalization policy in place. She did not adjust the books each year for the fixed asset activity but left that up to the tax accountant. HSR did not purchase any items in the current fiscal year that the executive director believed to be capital in nature. IWe recommend that the HSR Board adopt a capitalization policy. Also, if HSR is going to rely on their tax accountant for the proper treatment of the fixed assets at year end, we I recommend that all adjusting journal entries proposed by the tax accountant be posted into the accounting software as of the fiscal year end date. If the expertise level for posting of AJE's is beyond the capabilities of the current staff we would be happy to advise and train in Ithat area. Exhibit 2 Page 3 I 1 DESCHUTES COUNTY HUMANE SOCIETY OF REDMOND dba BRIGHTSIDE ANIMAL CENTER I FINDINGS JUNE 30, 2014 C3. Notes Payable A schedule was received from Deschutes County Finance Department indicating the current balance owed to the County by HSR. Interest on this note is compounded monthly and added to the note balance owed. The note is secured by the building and land owned by HSR. In the current year the County approved the partition and sale of the Event Center which represented a portion of the collateral on this loan. The County received a portion of the proceeds of this sale, $141,000 which was used to reduce the debt owed by HSR. 1 The loan balance carried on the QuickBooks balance sheet of HSR did not match the schedule provided by the County. HSR had not reduced the County loan balance for the payment from the property sale. Interest on the note had been recorded for only a portion of the year. AJE #6 and AJE #9 are proposed to correct this balance at fiscal year-end. We recommend that HSR reconcile the monthly statement received from the County Finance department with the recorded loan balance and make proper adjusting entries to keep the balance current for financial reporting. d. Review established chart of accounts and segment reporting setup. A review of the chart of accounts and segment setup was performed. The Balance Sheet appears to contain reasonable accounts needed for proper financial reporting. The balance sheet, however, did lack a restricted net asset category in the equity section. AJE #10 is proposed to add the restricted balance at fiscal year end to the balance sheet. The Profit and Loss statement, although voluminous, appeared to be correctly categorized. The executive director indicated that these account breakdowns provide a management tool in analyzing expenses and preparing budgets. She understands the County would like less detail in the reports they receive from HSR. We have created proposed reports for the Balance Sheet and Profit and Loss Budget-vs-Actual (MTD & YTD) that include less detail for HSR to submit to the County. Also, we have created a proposed Cash Flow Statement that can be utilized for monthly reporting and year end reporting to the County, We would be happy to advise and train the executive director or a member of her staff in replicating these reports and enter into a discussion regarding the types of information to consider for explanatory comments that would accompany reports submitted to the County. I3. Identify any issues with the current accounting presentation that should be addressed. a. Non-recurring non-cash revenues may have been improperly included in the operational income statements: A review of the QuickBooks revenue activity showed one instance of improper revenue recognition. The revenue received by HSR for the sale of their Event Center was improperly posted into the fixed asset account. Proposed AJE #6 corrects the sale, which resulted in full removal of the fixed asset from the balance sheet and resulted in a loss. In Proposed AJE#6, the loss is correctly included on the Profit and Loss Statement as an "other expense" and is not included in the calculation of operating income. Exhibit 2 Page 4 I I2:29 PM Brightside Animal Center 09/29/14 Adjusting Journal Entries Accrual Basis July 2013 through June 2014 Date Num Name Memo Account Debit Credit - II 06/30/2014 AJE#1 Adjust for 2011 CPA adj not cleared 6103-00•OPERATI... 384.00 Adjust for 2011 CPA adj not cleared 1800-00•Other Ass... 384.00 384.00 384.00 I 06/30/2014 AJE#2 Adjust for 2011 CPA adj not cleared 6103-00•OPERATI... 470.00 Adjust for 2011 CPA adj not cleared 1700-10•Other Ass... 470.00 470.00 470.00 I 06/30/2014 AJE#3 Adjust account balance to actual 1800-01 • Payroll Ad... 700.00 Adjust account balance to actual 6308-20 • Employee... 200.00 Adjust account balance to actual 6308-30• Payroll&... 500.00 700.00 700.00 I 06/30/2014 AJE#4 Adjust payroll liab to actual 2200-01 •Accrued... 59.43 Adjust payroll liab to actual 2200-02 •Accrued in... 832.92 Adjust payroll liab to actual at YE 2200-00•Accrued ... 14,638.37 Adjust payroll liab to actual at YE 2201-00•Accrued P... 20,248,51 I Adjust payroll liab to actual at YE 6302 46 • Office Sup... 2,358.89 Adjust payroll liab to actual at YE 6302-20• Office Exp... 2,358.90 20,248.51 20,248.51 06/30/2014 AJE#5 Adjust old OS cks 2011 &clear old debit trans 1000-20 Checking... 919.57 I Adjust old OS cks 2011 &clear old debit trans 2050-00• State Lan... 281.83 Adjust old OS cks 2011 &clear old debit trans 6600-00•Miscellane... 637.74 919.57 919.57 I 06/30/2014 AJE#6 To record sale of Event Center 1400-20•Land 12,647.00 To record sale of Event Center 1400-40• Building-E... 572,461.91 To record sale of Event Center 1499-00•Accumulat... 83,893.00 To record sale of Event Center 7999 • Loss on sale... 353,215.91 I To record sale of Event Center 2500-00•County Lo... 141,000.00 To record sale of Event Center 1300 • Deposit held ... 7,000.00 585,108.91 585,108.91' 06/30/2014 AJE#7 To adjust balances to depreciation sch 1400-00•Vehicles 6,049.00 I To adjust balances to depreciation sch 1400-10• Equipment 35,681.61 To adjust balances to depreciation sch 1499-00•Accumulat... 49,399.80 To adjust balances to depreciation sch 3000-00• Unrestrict... 7,669.19 49,399.80 49,399.80 I 06/30/2014 AJE#8 To record current depreciation exp 10690• Depreciation... 57,857.00 To record current depreciation exp 1499-00•Accumulat... 57,857.00 57,857.00 57,857.00 I 06/30/2014 AJE#9 Record interest&adjust County N/P 6400-08•Interest E... 2,195.77 Record interest&adjust County N/P 2500-00•County Lo... 2,195.77 2,195.77 2,195.77 I 06/30/2014 AJE#10 To reclassify restricted funds at YE 3000-00' Unrestrict... 41,516.92 To reclassify restricted funds at YE 3100-00• Restricted... 41,516.92 41,516.92 41,516.92 106/30/2014 AJE#11 Anderchuk,Tonya To clear AR collections 1200-00 ••Accounts... 80.00 Anderchuk,Tonya To clear AR to collections 1200-02 •Receivabl... 80.00 80.00 80.00 06/30/2014 AJE#12 Ashford, Deborah To clear AIR to collections 1200-00 •Accounts... 586.50 I Ashford, Deborah To clear AIR to collections 1200-02 •Receivabl... 586.50 586.50 586.50 06/30/2014 AJE#16 Knapp,Jean To clear A/R to collections 1200-00 •Accounts... 60.00 I Knapp,Jean To clear A/R to collections 1200-02 •Receivabl... 60.00 60.00 60.00 06/30/2014 AJE#17 Main,Stephanie To clear A/R to collections 1200-00•Accounts... 145.00 Main,Stephanie To clear A/R to collections 1200-02 •Receivabl... 145.00 I145.00 145.00 Exhibit 2 Page 5 Page 1 1 I2:29 PM BrightSide Animal Center 09/29/14 Adjusting Journal Entries Accrual Basis July 2013 through June 2014 Date Num Name Memo Account Debit Credit 06/30/2014 AJE#18 Maynard,Michael To clear A/R to income 1200-00 •Accounts... 44.00 Maynard,Michael To clear A/R to income 4200-01 • RV Storag... 44.00 44.00 44.00 06/30/2014 AJE#19 Morris,Venetia To clear A/R to income 1200-00 ••Accounts... 33.00 Morris,Venetia To clear A/R to income 4200-01 • RV Storag... 33.00 33.00 33.00 06/30/2014 AJE#20 Niblock,Russell To clear A/R to income 1200-00 •Accounts... 44.00 I Niblock,Russell To clear A/R to income 4200-01 • RV Storag... 44.00 44.00 44.00 06/30/2014 AJE#21 Petco To clear A/R to collections 1200-00 •Accounts... 70.00 I Petco To clear A/R to collections 1200-02 • Receivabl... 70.00 70.00 70.00 06/30/2014 AJE#23 WAITE,GERALD To clear A/R to income 1200-00 •Accounts... 62.00 I WAITE,GERALD To clear A/R to income 4200-01 • RV Storag... 62.00 62.00 62.00 06/30/2014 AJE#26 To create ADA for AR write off 1200-01 ,Allowance... 941.50 To create ADA for AR write off 6400-04 • Bad Debt... 941.50 I941.50 941.50 TOTAL 760,866.48 760,866.48 I I I I I I I I 1 IExhibit 2 Page 6 Page 2 1 I co ea N O y L O CC) v M C L.. co W M to O) N v. i - @ 4_ M V' c0 b O L V y+ 4 r+ N di C N f0 E N (V T a gt d 1 I E N U E E U X O 9 CD V to M N O. d hl f0 a. 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E 5Zs_ �. .0 rn .0 m = v, m Exhibit 3 Page 2 I I5:05 PM BrightSide Animal Center 09/15/14 Balance Sheet Accrual Basis As of June 30, 2014 Jun 30,14 Jun 30,13 I ASSETS Current Assets Checking/Savings 1000-99• Front Desk Till 200.00 0.00 1 1000-80• PayPal 368.99 0.00 1000-50 Shelter Petty Cash 179.56 0.00 1110-00•Thrift Store Petty Cash 93.25 200.00 1000-10•Thrift Store Checking 236.94 835.50 I 1000-20•Checking BSAC 111,519.73 11,688.24 1000-40•Restricted Funds BSAC 41,516.92 11,804.24 1000-30• Money Mkt BSAC 3,655.43 2,092.20 Total Checking/Savings 157,770.82 26,620.18 I Accounts Receivable 1200-00-Accounts Receivable 2,458.50 1,842.50 Total Accounts Receivable 2,458.50 1,842.50 I Other Current Assets 1200-02• Receivables in collection 941.50 0.00 1200-01 •Allowance for doubtful accounts -941.50 \ 0.00 1300•Deposit held by DC 7,000.00(,1 J\ 0.00 I1800-00'Other Asset-Other 1800-01 Payroll Advances 0.00 -500.00 1800-00•Other Asset-Other-Other 0.00 384.00 Total 1800-00•Other Asset Other _ 0.00 -11600 1700-10•Other Assets Deposits 0.00 470.00 Total Other Current Assets 7,000.00 354.00 I Total Current Assets 167,229.32 28,816.68 Fixed Assets 1400-00•Vehicles 37,462.00 31,413.00 I 1400-20-Land 37,941.00 50,588.00 1400-10 Equipment 116,840.00 81,158.39 1400-30 Building and Improvements 1,392,143.22 1,392,143.22 1499-00•Accumulated Depreciation -457,609.00 -434,245.20 1400-40 •Building-Event Center 0.00 682,552.99 I 1400-35•Room for Surgery 35,010.00 35,010.00 Total Fixed Assets 1,161,787.22 1,838,620.40 I TOTAL ASSETS 1,329,016.54 1,867,437.08 LIABILITIES&EQUITY Liabilities Current Liabilities I Accounts Payable 2000-00 Accounts Payable 23,946.46 38,273.23 Total Accounts Payable 23,946.46 38,273.23 I Other Current Liabilities 2050-00•State Lands payable 281.83 0.00 2200-00•Accrued Payroll and Taxes 2200-02•Accrued insur(AFLAC) 0.00 388.11 I 2200-00•Accrued Payroll and Taxes-Other 6,047.40 37,154.01 Total 2200-00 •Accrued Payroll and Taxes 6,047.40 37,542.12 2201-00•Accrued Payroll Taxes 0.00 2,804.77 I Total Other Current Liabilities 6,329.23 40,346.89 Total Current Liabilities /� I 30,275.69 78,620.12 I ,SCQ EyLIv" 4 i_ c- r �KY4L�NGL_f(U7l 0` -4", ,cic, v C Exhibit 4 Page 1 Page 1 I5:05 PM BrightSide Animal Center 09/15/14 Balance Sheet Accrual Basis As of June 30, 2014 Jun 30,14 Jun 30,13 I Long Term Liabilities 2500-00•County Loan 526,279.98 663,632.40 Total Long Term Liabilities 526,279.98 663,632.40 ITotal Liabilities 556,555.67 742,252.52 Equity 41,516.92 0.00 3100-00•Restricted Net Assets I 3000-00•Unrestricted Net Assets 1,075,998.45 1,076,484.50 Net Income 345,054.50 48,700.06 Total Equity 772,460.87 1,125,184.56 ITOTAL LIABILITIES&EQUITY 1,329,016.54 1,867,437.08 I I I I I I I I I I I IExhibit 4 Page 2 Page 2 I 1 4:41 PM BrightSide Animal Center 09/15/14 Profit & Loss Budget vs. Actual IAccrual Basis July 2013 through June 2014 Jul'13-Jun 14 Budget $Over Budget %of Budget I Ordinary Income/Expense Income 4400-00•GRANTS 74,912.19 37,800.00 37,112.19 198.2% 4000-00•FUNDRAISING 107,688.93 135,700.00 -28,011.07 79.4% I 4100-00•THRIFT STORE INCOME 275,883.06 267,000.00 8,883.06 103.3% 4200-00•EVENT CENTER&RV STORAGE 18,402.63 18,996.00 -593.37 96.9% 4300-00•SHELTER OPERATIONS 557,671.10 424,604.00 133,067.10 131.3% Total Income 1,034,557.91 884,100.00 150,457.91 117.0% IGross Profit 1,034,557.91 884,100.00 150,457.91 117.0% Expense I mileage reimbursement 32.48 6400-00•ADMINISTRATION 8,852.13 6100-00•THRIFT STORE EXPENSES 157,254.46 124,990.00 32,264.46 125.8% 6000-00•FUNDRAISING EXPENSES 44,362.13 28,950.00 15,412.13 1532% 6300-00 •SHELTER EXPENSES I 6301-00•VETERINARY MEDICAL EXPENSES 83,608.20 69,000.00 14,60820 121.2% 6302-00•OFFICE&NON MEDICAL EXPEN... 60,594.86 39,000.00 21,594.56 155.4% 6303-00• MAINTENANCE AND REPAIRS 22,780.44 12,000.00 10,780.44 189.8% 6304-00• UTILITIES 59,744.54 48,000.00 11,744.54 124.5% I 6305-00 PET SUPPLIES&FOOD 24,962.69 33,000.00 -8,037.31 75.6%• 6306-00•GRANT EXPENDITURES 5,214.24 6307-00• PROFESSIONAL FEES 16,250.05 15,600.00 650.05 104.2% 6308-00• PAYROLL&TAXES I 6308-10•TAXES 482.00 6308-20 •Employee Payroll Advance 0.00 6308-30• Payroll&Payroll Taxes 441,240.23 6308-40 •Wage Garnishment 29.50 6308-00 • PAYROLL&TAXES-Other 1,276.33 438,000.00 X36,723.67 0.3% ITotal 6308-00• PAYROLL&TAXES 443,028.06 438,000.00 5,028.06 101.1% 6309-00• MICROCHIPS 6,444.76 9,000.00 -2,555.24 71.6% 6310-00• INSURANCE EXPENSE 16,588.21 20,000.00 -3,411.79 82.9% I 6311-00 BANKING 4,282.56 3,840.00 442.56 111.5% 6312-00•ADVERTISING 11,489.15 12,000.00 -510.85 95.7% 6313-00•AUTO 1,76828 4,656.00 -2,887.72 38.0% 6316-00• REFUNDS 1,420.00 I 6314-00•SHELTER OPERATIONS 0.00 758,176.04 12,000.00 12,000.00 0.0% Total 6300-00•SHELTER EXPENSES 716,096.00 42,080.04 105.9% Employee education 500.00 I 6600-00 • Miscellaneous Expense -637.74 10690 Depreciation Exp 57,857.00 Total Expense 1,026,396.50 870,036.00 156,360.50 118.0% I Net Ordinary Income 8,161.41 14,064.00 -5,902.59 58.0% Other Income/Expense Other Expense I 7999 •Loss on sale of fixed asset 353,215.91 Total Other Expense 353,215.91 Net Other Income -353,215.91 INet Income -345,054.50 14,064.00 -359,118.50 -2,453.5% I IExhibit 4 Page 3 Page 1 I I4:36 PM BrightSide Animal Center 09/15/14 Profit & Loss Budget vs. Actual IAccrual Basis June 2014 Jun 14 Budget $Over Budget %of Budget I Ordinary Income/Expense Income 4400-00•GRANTS 0.00 0.00 0.00 0.0% 4000-00•FUNDRAISING 6,911.39 9,000.00 -2,088.61 76.8% I4100-00•THRIFT STORE INCOME 31,674_550)) 21,000.00 10,674.55 150.8% 4200-00•EVENT CENTER&RV STORAGE 1,366.00 1,583.00 215.00 86.4% 4300-00 SHELTER OPERATIONS 37,255.18 32,467.00 4,788.18 114.7% Total Income 77,209.12 64,050.00 13,159.12 120.5% IGross Profit 77,209.12 64,050.00 13,159.12 120.5% Expense I 6400-00•ADMINISTRATION 3,137.27 6100-00•THRIFT STORE EXPENSES 6102-00• PAYROLL&TAXES 7,650.56 6103-00•OPERATING SUPPLIES 1,677.72 6104-00• BANK FEES 460.05 I 6105-00• RENT 5,392.00 6106 OPERATION EXPENSE 1,310.00 6107-00•REPAIRS&MAINTENANCE 369.00 6108-00•AUTO 635.68 I 6109-00•ADVERTISING 180.00 6100-00•THRIFT STORE EXPENSES-Other 0.00 9,855.00 9,855.00 0.0% Total 6100-00•THRIFT STORE EXPENSES 17,675.01C 9,855.00 7,820.01 179.4% I 6000-00•FUNDRAISING EXPENSES 5,245.23 1,000.00 4,245.23 524.5% 6300-00•SHELTER EXPENSES 6301-00 VETERINARY MEDICAL EXPENSES 4,942.70 5,750.00 -807.30 86.0% 6302-00•OFFICE&NON MEDICAL EXPENSES 8,732.74 3,250.00 5,482.74 268.7% I 6303-00•MAINTENANCE AND REPAIRS 484.97 1,000.00 -515.03 48.5% 6304-00•UTILITIES 3,810.91 4,000.00 -189.09 95.3% 6305-00•PET SUPPLIES&FOOD 1,994.73 2,750.00 -755.27 72.5% 6307-00•PROFESSIONAL FEES 1,359.75 1,300.00 59.75 104.6% 6308-00•PAYROLL&TAXES I 6308-20• Employee Payroll Advance -200.00 6308-30 Payroll&Payroll Taxes 39,588.66 6308-DO• PAYROLL&TAXES-Other 0.00 36,500.00 -36,500.00 0.0% Total 6308-00• PAYROLL&TAXES 39,388.66 36,500.00 2,888.66 107.9% I 6309.00 MICROCHIPS 0.00 750.00 750.00 0.0% 6310-00• INSURANCE EXPENSE 3,469.18 1,000.00 2,469.18 346.9% 6311-00• BANKING 394.38 320.00 74.38 123.2% I 6312-00•ADVERTISING 125.00 1,000.00 -875.00 12.5% 6313-00•AUTO 118.49 388.00 -269.51 30.5% 6314-00•SHELTER OPERATIONS 0.00 1,000.00 -1,000.00 0.0% Total 6300-00•SHELTER EXPENSES 64,821.51 59,008.00 5,813.51 109.9% I 6600-00• Miscellaneous Expense -637.74 10690 Depreciation Exp 57,857.00 Total Expense 148,098.28 69,863.00 78,235.28 212.0% - INet Ordinary Income -70,889.16 -5,813.00 -65,076.16 1,219.5% Other Income/Expense Other Expense I 7999 • Loss on sale of fixed asset 353,215.91 C3 Total Other Expense 353,215.91 I Net Other Income 353,215.91 Net Income -424,105.07 -5,813.00 418,292.07 7,295.8% I, IF n.t h I'-/ 1/, �), v v e4xjl l w, (.11'1 0/ r clak_ct, -k s Exhibit 4 Page 4 Page 1 I 1 4.34 PM BrightSide Animal Center 09/15/14 Profit & Loss I Accrual Basis July 2013 through June 2014 Jul 13-Jun 14 Jul'12-Jun 13 S Change %Change Ordinary Income/Expense I Income 4400-00•GRANTS 74,912.19 56.7217.76 18,191.43 32.1% 4000-00•FUNDRAISING 107,668.93 76,029.77 31,659.16 41.6% 4100-00•THRIFT STORE INCOME 275,883.06 250,356.85 25,526.21 10.2% 4200-00-EVENT CENTER&RV STORAGE 18,402.63 22,236.12 -3,833.49 -17.2% 4300-00•SHELTER OPERATIONS 557,671.10 602,147.91 -44,476.81 -7,4% Total Income 1,034,557.91 1.007.491 41 27,066,50 2.7% Gross Profit 1,034,557,91 1,007,491.41 27,066.50 2.7% Expense I mileage reimbursement 32.48 8.00 32.46 100,0% 6400-00•ADMINISTRATION 8,852.13 18,638.31 -9,786.18 -52.5% 610D-00•THRIFT STORE EXPENSES 6110-00-Professional Fees 10,150.00 0.00 10,150.00 100.0% 6101-00•MISCELLANEOUS 2,069,49 100.00 1,969.49 1,969.5% I 6102-00•PAYROLL&TAXES 57,031.51 86,696.06 -29,664.55 -342% 6103-00•OPERATING SUPPLIES 5,586.91 3,966.67 1,620.24 40.9% 6104-00•BANK FEES 4,402,39 3,508.56 693.63 25.5% 6105-00•RENT 41,420.00 25,833.00 15,587.00 60.3% 6106-OPERATION EXPENSE 21,170.32 18,462.52 2,687.80 14,5% 6107-00•REPAIRS&MAINTENANCE 6,843,59 570.64 6,272.95 1,099.3% I 6106-00•AUTO 5,435.42 3,097,28 2,338,14 75.5% 6109-00•ADVERTISING 3,144.83 1,251.21 1,893.62 151.3% 6100-00'THRIFT STORE EXPENSES-Other 0.00 45.88 -45.88 -100.0% Total 6100-00•THRIFT STORE EXPENSES 157,254.46 143,551.82 13,702.64 9.6% I 6000-00•FUNDRAISING EXPENSES 44.362.13 33,335.61 11,026.52 33.1% 6300.00•SHELTER EXPENSES 6317-00•Depreciation 0.00 65,000.00 -65,000.00 -100.0% 63177-00•VETERINARY MEDICAL EXPENSES 83,608.20 76,866.13 6,742.07 8.8% 6302-00•OFFICE&NON MEDICAL EXPENSES 60,594.86 34,876.03 25,718.83 73.7% 6303-00•MAINTENANCE AND REPAIRS 22,780.44 8,096.87 14,683.57 181,4% I 6304-00•UTILITIES 59,744.54 44,570.08 15,174.46 34,1% 6305-00-PET SUPPLIES&FOOD 24,962.69 19,782.48 5,180.21 262% 6306-00•GRANT EXPENDITURES 5,214.24 29,585.24 -24,371.00 -82.4% 6307-00•PROFESSIONAL FEES 16,250.05 17,386.25 -1,136.20 -6.5% 6308-00-PAYROLL&TAXES I 6308-10•TAXES 482.00 565.95 -83.95 -14.8% 6306-20•Employee Payroll Advance 0.00 6,090.00 -6,090.00 -108.0% 6306-30•Payroll&Payroll Taxes 441,240.23 415,074.00 26,166.23 6.3% 6308-40•Wage Garnishment 29.50 829.44 -799.94 -96.4% 6308-00•PAYROLL&TAXES-Other 1,276.33 0.00 1,276.33 - 100.0% Total 6308-00•PAYROLL&TAXES 443,028 06 422,559.39 20,468.67 4.8% I 6309-00•MICROCHIPS 6,444.76 8,070.46 -1,625.70 -20.1% 6310-00•INSURANCE EXPENSE 16,588.21 19,436.21 -2,848.00 -14.7% 6311-00•BANKING 4,282.56 4,293.00 -10.44 -0,2% 6312-00•ADVERTISING 11,489.15 1,740.70 9,748,45 560.0% 6313-00-AUTO 1,768.28 2,643.34 -875.06 -33.1% I 6316-00-REFUNDS 1,420.00 8,179.00 -6,759.00 -82.6% 6314-00•SHELTER OPERATIONS 0.00 93.94 -93.94 -100.0% Total 6300-00•SHELTER EXPENSES 758,176,04 763,179.10 -5,003,06 -0,7% Employee education 500.00 0,00 500.00 100.0% I 1,026,396.50 6600-00•Miscellaneous Expense -037.74 173.12 -610.86 -468.4% 10690•Depreciation Exp 57,857.00 0.00 57,857.00 100.0% Total Expense 956,677.96 - 67,518.54 7.0% Net Ordinary Income 8,161.41 48,613.45 -40,452,04 -83.2% I Other Income Expense Other Income 9000-00•Prior Year Adjustment 0.00 86.61 -96.61 -100.0% Total Other Income 0.00 86.61 -86.61 -100.0% 1 Other Expense 7999-Loss on sale of fixed asset 353.215.91 0.00 353,215.91 100,0% Total Other Expense 353,215.91 Y 0.00 353,215.91 100.0% Net Other Income -353,215.91 86.61 -353,302.52 -407,923.5% Net Income -345,054.50 'W 48,700.06 -393,754.56 -808.5% I •Exhibit 4 Page 5 Pagel 10:24 Ann BrightSide Animal Center 09115(14 Statement of Cash Flows July 2013 through June 2014 Jul'13-Jun 14 OPERATING ACTIVITIES Net Income (345,055) Adjustments to reconcile Net Income to net cash provided by operations: Depreciation 57,857 ' Loss on disposal of assets 353,216 Accounts receivable (617) Other current assets (6,646) ' Accounts payable (14,045) Acxrued payroll and payroll liabilities (34,299) ' Net cash provided by Operating Activities 10,412 ' INVESTING ACTIVITIES Sale of fixed assets 258,091 Net cash provided by Investing Activities 258,091 FINANCING ACTIVITIES ' Payments on long term debt (141,000) Increases to long term debt 3,648 Net cash used in Financing Activities (137,352) Net cash increase for period 131,151 Cash at beginning of period 26,620 Cash at end of period _ 157,771 1 1 Exhibit 4 Page 6 ' Page 1 of 1 DESCHUTES COUNTY HUMANE SOCIETY OF REDMOND dba BRIGHTSIDE ANIMAL CENTER EXPLANATORY COMMENTS JUNE 30, 2014 (Example only, statements made for example not necessarily based on fact.) BALANCE SHEET Exhibit 4, pg. 1 1. This amount represents a portion of the proceeds from the sale of HSR Event Center to COCC. This amount is being held in trust by Deschutes County for the purpose of retaining a CPA to perform Agreed Upon Procedures as stated in Deschutes County Contract#2014-276 and will be utilized for payment to said CPA. PROFIT & LOSS BUDGET VS. ACTUAL Exhibit 4, pg. 4 2. Thrift Store expenses are over budget by $7,820 for the month of June 2014. However, income for the Thrift Store is also over budget for the month. The Thrift Store has increased their hours of operations. This has required increased staffing hours; therefore, increasing the store's expenses for the month. Increased operations also have allowed for increased sales at the store. 3. HSR sold a partitioned portion of their land and the related Event Center built on the site to COCC during 2014. This sale resulted in financial statement loss based on the carrying value of the asset and the amount of the sale. This property was encumbered with a note payable to Deschutes County. The County approved the sale of the property with stipulation that a portion of the sale proceeds was to be used to reduce the debt owed. The debt to Deschutes County was reduced by $141,000 as a result of this sale. We recommend that the Board of Directors of HSR and Deschutes County agree upon a dollar value and/or percentage change to account balances for which they would require explanatory comments. This would assist the Executive Director and her staff in presenting only pertinent information to the Board and County each month. Exhibit 4 Page 7 Monthly Meeting with Board of Commissioners Finance Director/Treasurer AGENDA December 15, 2014 (1) Monthly Investment Report — November 2014 (2) November 2014 Financials (3) Financial Policies C•) N l{7 N CO ' O 0 0 f s , E .,- . M N '-' N o � MO N- 0 � o 4 ~ u) co 1-- In d) w. C , › 0000 f000 7 'R '. a 0 a d m u: N as • • ♦ } . � +0 '_ C N � 'u�.. u`�'i in cn a C c 0 H H C ` NO N d• ti N O ❑ ❑ ❑ 0 O : C r ) O `-' 00 L 2 o o a .c rte, .c o c co to c ix c 2 +tiR�;' Z 0 2 0 0 0 d U, fR U N J M .. ,.- � • A r r U IL cn N n c ti F- oo c..) M E °' U N m 3 U' � E Z mcQ u. o c _ +r � 0 e e e e e e e e e e 3 c Q 0 0 4) d7 0 4) 4) 0 10 0 o 0 c 00 1.- N 4) N N a- N 0 c.) c' r c y 0 E U)) ca 0 _ H ;; C ~ 2 N rn ¢ 0 Q E y co N C <C ,r� 0 2 f0 t V 0- 2 m V } O N O 0)2 u,~ a N Y p) U O o N N O � ['1 C C co F- C» _I li m 1 2 U H DD V" / 0 0 W e ° e e e e O N a- 0 ID C) ID a 0 >. t9 0) N G u) M h c6 � N N ( O S M Y." a) H V E m l- in m a, N m� °+d) Q p r d F a.C O >s NONOC ' 1- +-' a3 LL¢ y .0 nt 0aDOOe- P7 c Ea �e i O r" U t UO ? 4,, U, C °� as a as ate•► O 3 C ndm "` 4 ❑ai $" "" ,e C _v. N N C to N O " ,S� m 0 Z 4= y U 0 $ 0 cu 0 0 Q S. <fli o (] � mm m°a�i L to t •E aa) vjva 4 a� 0 d.. 2U� Dti -1 H yr 0 f' ti Deschutes County Investments Portfolio Management Portfolio Details-Investments November 30,2014 ... ........---.... Purchase Maturity Days To Ratings Coupon Par Market Book Call CUSIP Security Broker Date Date Maturity Moodys S&P Rate YTM 365 Value Value Value Date 4001174329 Columbia State Bank CD 12/5/2013 12/5/2014 4 0.210 0.213 140,000 140,000 140,000 - - 8941748454 Sterling Savings Bank CD 7/1/2013 1/1/2015 31 0.200 0.203 2,000,000 2,000,000 2,000,000 - - HFBCD Home Federal Bank CD 2/1/2013 1/31/2015 61 0.200 0.203 140,000 140,000 140,000 - 4001154309 Columbia State Bank CD 4/1/2013 3/30/2015 119 0.150 0.152 100,000 100,000 100,000 273-150017-5 South Valley Bank CD 5/20/2013 5/20/2015 170 0.748 0,758 200,000 200,000 200,000 - - UMP972002570 Umpqua Bank 6/7/2014 6/7/2015 188 0.400 0.406 240,000 240,000 240,0001 - - 3692G5F7 General Electric-Corporate N CASTLE 9/17/2013 6/30/2015 211 AA+ Al 2 375 0.865 1,400,000 1,416,730 1,412,150 - - 36962G5F7 General Electric-Corporate N CASTLE 1/10/2014 6/30/2015 211 AA+ Al 2375 0.501 545,000 551,513 550,902. - - SYS10316 Umpqua Bank 7/9/2013 7/9/2015 220 0.500 0.507 2,000,000 2,000,000 2,000,000 - - 911591-1GX2 US Bancorp CASTLE 4/2/2014 7/27/2015 238 A+ Al 2.450 0.501 1,180,000 1,196,673 1,195,009 - - 91159HGX2 U S Bank-Corp Note CASTLE 3/26/2014 7/27/2015 238 A+ Al 2.450 0.500 1,573,000 1,595,226' 1,593,012 - - 86459DAB2 Morgan Hill Redev-B CASTLE 10/1/2014 9/1/2015 274 AA- 1.120 0.450 750,000 753,240 753,755 - 064159BA3 Bank of Nova Scotia CASTLE 4/3/2014 10/9/2015 312 A+ Aa2 0.750 0,621 540,000 541,561 540,594 - - 36962G4T8 General Electric-Corporate N CASTLE 7/24/2014 11/9/2015 343 AA+ Al 2.250 0.500 2,000,000 2,034,280 2,032,708', - - 742718055 Procter&Gamble _ CASTLE 12/6/2013.11/15/2015 349 AA- AA3 1.800 0.430 1,000,000 1,014,220 1,013,022 - - 532457AN8 Eli Lilly&Co. CASTLE 3/24/2014 1/1/2016 396 AA- A2 6.570 0.500 1,408,000 1,499,858 1,500,049 084670BG2 Berkshire Hathaway Inc CASTLE 3/3/2014 2/11/2016 437 AA Aa2 0.800 0.500 1,000,000 1,003,870 1,003,561 17275RAC6 Cisco Systems Inc CASTLE 2/27/2014 2/22/2016 448 AA- Al 5.500 0.550_ 1,874,000 1,987,340 1,986,857 - - 06406HCG20 Bank of New York Mellon Corp CASTLE 4/4/2014 3/4/2016 459 A+ Al , 0,700 0.681 1,000,000 1,002,170' 1,000,236 2/3/2016 3133734F6 Federal Home Loan Bank CASTLE 5/2/2014 4/15/2016 501 AA+ Aaa 0.772 0.600 650,000 650,494 651,526 - - 78008K5V1 Royal Bank of Canada CASTLE 11/19/2014 4/19/2016 505 AA- Aa3 2.875 0.650 1,500,000 1,546,050 1,545,875 - - 478160AY0 Johnson&Johnson CASTLE 1/7/2014 5/15/2016 531 AAA Aaa 2.150 0.620 1.529,000 1,565,451 1,562,748 - - 9497460U8 Wells Fargo Corporate Note VINISP 2/20/2014 6/15/2016 562 A+ A2 3.676 0.750 1,000,000 1,043,850 1,044,552 - - 949746QU8 Wells Fargo Corporate Note CASTLE 10/2/2014 6/15/2016 562 A+ A2 3.676 0.870 1,000,000 1,043850 1,042,775 686053CF4 Oregon School Boards Assoc CASTLE 3/7/2014 6/30/2016 577 A+ Aa2 0.000 0.999 3,000,000 2,955,540 2,953,308' - - 31359YBY2 Federal National Mtg Assn CASTLE 10/16/2014 7/15/2016 592 0.354 0.365 l 693,000 1,674 292 1 683 158 - - 88059EMP6 Tennessee Valley Authority CASTLE 10/29/2014 7/15/2016 592 0.490 0.507 2,000,000 1,978,640 1,983,879 - - 78008TLB8 Royal Bank of Canada , CASTLE 11/26/2014 7/20/2016 597 AA- Aa3 2.300 0.800 1,630,000 1,670,114 1,669,647 - - 912828QX1 U.S.Treasury MBS 6/19/2014 7/31/2016 608 AA- Aaa 1.500 0.548 1,000,000 1,019 1401 1,015,731 - - I 3134G56B6 Federal Home Loan Mtg Corp MBS 7/7/2014 8/26/2016 634 AA+ Aaa 0.580 0.629 2,000,000 2,000,780 1,998,293 2/26/2015 31359YLS4 Federal National Mtg Assn PJ 3/5/2014 9/15/2016 654 AA+ Aaa 0.778 0.812 672,000 664,218 662,498 - - 3133EAZ76 Federal Farm Credit Bank CASTLE 5/23/2014 9/26/2016 665 AA+ Aaa 0.690 0.686 3,000,000 2,998,140 3,000,233 - - 3133EAZ76 Federal Farm Credit Bank CASTLE 10/8/2014 9/26/2016 665 AA+ Aaa 0.690 0.690 2,000,000 1,998,760 2,000,000 - - L 1--4 66- A 1 2,011,908 9/28/2015 3131A1CD8 Federal Home Loan Bank CASTLE 7/17/2014 9/28/2016 667 AA+ Aaa 1.125 0.728 2,000,000 2,014 540 __- 313043645 Federal Home Loan Bank MBS 10/28/2014 10/28/2016 697 AA+ Aaa 0.700 0.659 750,000 749,445 750,552 10/28/2015 912828RM4 U.S.Treasury CASTLE 12/27/2013 10/31/2016 700 AA+ Aaa 1.000 0.727 1,000,000 1,010,630 1,005 158 - - 06050TLR1 Bank of America-Corporate CASTLE 5/13/2014 11/1412016 714 A A2 1.125 1.050 1,900,000 1.900,798 1,902,728 - - 3133ECWV2 Federal Farm Credit Bank CASTLE 12/17/2013 12/7/2016 737 AA+ Aaa 0.875 0.722 2,100,000 2,109,975 2,106,683 - 064159DA1 Bank of Nova Scotia CASTLE 6/9/2014 12/13/2016 743 A+ Aa2 1.100 0.910 1,800,000 1.807,650 1,806,850_=- 3136G1XP9 Federal National Mtg Assn PJ 3/6/2014 12/19/2016 749 AA+ Aaa 0.800 0.788 2,000,000 2,002,080 2,000,500, 2/19/2015 06406HCA5 Bank of New York Mellon Corp CASTLE 4/23/2014 1/17/2017 778 A+ Al 2.400 1 067 2,000,000, 2 057 580 2,055,737 12/18/2016 912828SC5 U.S.Treasury CASTLE 1/16/2014 1/31/2017 792 AA+ Aaa 0875 0.844 2,000,000 2,012,820' 2,001,337 - - 7426510N9 Private Expt Fdg PJ 11/20/2014 2/15/2017 807 1.375 0.799 3,000,000 3,037,830 3,037,698 - - 0641590Z6 Bank of Nova Scotia CASTLE 5/1/2014 3/17/2017 837 A+ Aa2 0.800 0.906 1,000,000 1,006,450 997,608 3/17/2016 912828SS0 U.S.Treasury WF 1/17/2014 4/30/2017 881 AAA Aaa 0.875 0.950 2,000,000 2,009,680 1,996,440 - - 037833AM2 Apple Inc CASTLE 6/24/2014 5/5/2017 886 AA+ Aal 1.050 1.057 2,000,000 2,009,340' 1,999,661 - - 3135GOZD8 Federal National Mtg Assn PJ 10/7/2014 5/16/2017 897 AA+ Aaa 2,000 1.127 3,000,000 3,066,000 3,060,851 5/16/2016 89236TBH7 Toyota Mtr Cred-Corp N CASTLE 7/29/2014 5/16/2017 897 AA- AA3 1.125 1.150 2,125,000 2,125,808 2,123,693 - - 9 ..__.. 88_..._..._....----0- ... ., 1,501,430 - - 3136FPY67 Federal National Mt Men VINISP 2/7/2014 5/23/2017 904 AA+ Aaa 2_050 0.885 _1,460,000 1,498,383,, 31359MEL3 Federal National Mt9 Assn CASTLE 12/23/2013 6/1/2017 913 AA+ Aaa 1.061 1.115 1,000,000 978,870 973,082 - - 31359MEL37 Federal National Mtg Assn CASTLE 1/24/2014 6/1/2017 913 AA- Aaa 1.081 1.136 1,050,000 1,027,814 1,021,209 29270CYZ2 Bonneville PowerAdministratio CASTLE 4/24/2014 7/1;2017 943 AA- Aal 1.197 1.A71 670,000 670,844 670,451 - - 84247PHS3 Southern CA Public PowerAutho CASTLE 6/17/2014 7/1/2017 943 AA- 1.145 1.180 1,000,000 996,080 999,107 912828TM2 U.S.Treasury CASTLE 9/10/2014 8/31/2017 1004 0.625 1.061 1,000,000 994,530 988,227 - - 313383JB8 Federal Home Loan Bank VINISP 12/26/2013 9/27/2017 1031 AA+ Aaa 1.000 1.250 1,000,000 998,340 993,126 - - 3136GOC74 Federal National Mtg Assn VINISP 2/3/2014 9/27/2017 1031 AA+ Aaa 1.000 0.943 1,050,000 1,053,833, 1,051,656 9/27/2015 3130A1ZK7 Federal Home Loan Bank MBS 5/28/2014 11/28/2017 1093 AA+ Aaa 0750 0.750 1,000,000 1,000,380 1,000,000' 88059FAZ4 Tennessee Valley Authority CASTLE 11/21/2014 12/15/2017 1110 AA+ 1.205 1.268 1,059,000 1,019,933 1,019,642 - - _.... -.7--..._..._.__... 31300N71 Federal Home Loan Bank VINISP 4/2/2014 1/30/2018 1156 AA+ Aaa 2.000 1.710 1,500 0,000 1,503,780 1,513,266 1/30/2015 3136G1AU3 Federal National Mtg Assn VINISP 12/23/2013 1/30/2018 1156 AA+ 0.700 1.420 1,000,000 990,020 989,705" 1/30/2015 3135GOVU4 Federal National Mtg Assn VINISP 1/24/2014 4/3/2018 1219 AA+ Aaa 1.125 1.540 1,000,000 997,9701 986,618 4/3/2015 3130A25R3 Federal Home Loan Bank MBS 6/19/2014 6/19/2018 1296 AA+ Aaa 1.000 1.026 2,000,000 2,000,800' 1,998,225.12/19/2014 3136G16B0 Federal National Mtg Assn VINISP 1/21/2014 12/27/2018 1487 AA+ Aaa 0.750 1,820 1,000,000 992,570 975,880,12/27/2014 LGIP 1 0.500 0.500 73 266,392 73,266,392 73,266,392'1 Bank of the Cascades 1 0.500 0.500 3,883,349 3,883,349 3,883,349' 164,377,741 165,020,515 164,904,848 • Memorandum Date: December 8, 2014 To: Board of County Commissioners Tom Anderson, County Administrator From: Wayne Lowry, Finance Director RE: Monthly Financial Reports Attached please find November 2014 financial reports for the following funds: General (001), Community Justice—Juvenile (230), Sheriffs (255, 701, 702), Public Health (259), Behavioral Health (275), Community Development(295), Road (325), Community Justice—Adult(355), Early Learning Hub (370), Solid Waste (610), Insurance Fund (670), 9-1-1 (705), Health Benefits Trust(675), Fair& Expo Center (618), and Justice Court (123). 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 July 1, 2014 through November 30, 2014 FY 2014 (42%of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection $Variance Revenues Property Taxes-Current 21,906,239 20,825,333 92% a) 22,736,401 23,136,401 400,000 Property Taxes-Prior 704,120 358,021 62% 576,500 576,500 - Other General Revenues 2,116,386 1,395,750 62% b) 2,247,299 2,247,299 - Assessor 875,381 440,945 50% c) 876,137 876,137 - County Clerk 1,276,019 569,184 48% 1,181,190 1,200,000 18,810 BOPTA 16,097 7,711 48% c) 16,117 16,117 - District Attorney 226,973 111,454 61% d) 182,612 296,212 113,600 Tax Office 236,278 128,239 58% c) 222,199 222,199 - Veterans 80,787 24,049 24% 101,986 101,986 - Property Management 91,900 10,000 40% 25,000 25,000 - Grant Projects 2,000 - n/a - - - Total Revenues 27,532,179 23,870,687 85% 28,165,441 28,697,851 532,410 Expenditures Assessor 3,559,750 1,518,752 40% 3,793,770 3,793,770 - County Clerk 1,293,531 596,666 39% 1,536,210 1,536,210 - BOPTA 59,895 26,554 38% 70,777 70,777 - District Attorney 5,382,874 2,211,307 39% 5,712,168 5,712,168 - Tax Office 796,232 348,853 40% 877,907 877,907 - Veterans 292,672 130,750 37% 354,989 354,989 - Property Management 248,054 107,918 42% 258,569 258,569 - Grant Projects 130,054 - n/a - - - Non-Departmental 1,432,177 397,299 35% 1,139,696 1,139,696 - Total Expenditures 13,195,239 5,338,098 39% 13,744,086 13,744,086 - Transfers Out 16,327,584 6,162,358 44% 14,076,394 14,076,394 - Total Exp&Transfers 29,522,823 11,500,456 41% 27,820,480 27,820,480 - Change in Fund Balance (1,990,644) 12,370,231 344,961 877,371 532,410 Beginning Fund Balance 10,371,843 8,381,199 109% 7,692,433 8,381,199 688,766 Ending Fund Balance $ 8,381,199 $20,751,430 $ 8,037,394 $ 9,258,570 $1,221,176 a)Current year taxes received beginning in October b) PILT received in July-$500,000 c) YTD Actual includes two quarters of A&T Grant Page 1 COMM JUSTICE-JUVENILE Statement of Financial Operating Data , July 1, 2014 through November 30, 2014 FY 2014 (42%of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection I $ Variance Revenues OYA Basic&Diversion 322,574 92,410 26% a) 359,149 359,149 - State Grant - - 0% b) 91,379 121,002 29,623 Inmate/Prisoner Housing 47,550 44,850 112% c) 40,000 75,000 35,000 Jail Funding HB#2712 36,311 18,113 50% a) 36,568 36,568 - Food Subsidy 23,988 4,850 20% d) 24,000 14,400 (9,600) Interfund Grant-Gen Fund 20,000 5,000 25% a) 20,000 20,000 - Interest on Investments 7,611 3,654 52% e) 7,000 8,700 1,700 Leases 5,200 3,300 n/a f) - 7,500 7,500 SB#1065-Court Assess. 17,335 8,330 139% g) 6,000 24,000 18,000 Contract Payments 7,415 4,084 91% h) 4,500 6,240 1,740 Discovery Fee 1,870 - 0% i) 3,800 - (3,800) Case Supervision Fee - 2,009 n/a j) - 4,800 4,800 Federal Grants 9,434 1,205 n/a k) - 1,205 1,205 CFC Interfund Grant 125,429 - n/a - - - Miscellaneous 909 423 41% 1,025 1,025 - Total Revenues 625,626 188,228 32% 593,421 679,589 86,168 Expenditures Personnel Services 4,887,572 2,079,729 40% e) 5,146,491 5,065,000 81,491 Materials and Services 1,035,701 406,712 40% e) 1,021,392 960,000 61,392 Capital Outlay - - 0% 1,100 - 1,100 Transfers Out 3,660 915 25% 3,660 3,660 - Total Expenditures 5,926,933 2,487,356 40% 6,172,643 6,028,660 143,983 Revenues less Expenditures (5,301,306) (2,299,128) (5,579,222) (5,349,071) 230,151 Transfers In-General Fund 5,368,346 2,236,810 42% 5,368,346 5,368,346 - Change in Fund Balance 67,040 (62,318) (210,876) 19,275 230,151 Beginning Fund Balance 1,177,566 1,244,605 100% 1,250,000 1,244,605 (5,395) Ending Fund Balance $ 1,244,605 $ 1,182,288 $1,039,124 $1,263,881 $ 224,757 a) Payments received quarterly b) Additional grant awards. Payments received quarterly c) Increase in projection due to out-of-County detention revenue d) Decrease in projection due to detention population numbers e) Projection based on annualizing year to date f) Sub-lease of space to Rimrock not included in FY 2015 budget g) State payment will exceed the amount estimated for FY 2015 budget h) Increased projection due to more than anticipated revenue for community service projects i) Agreement with District Attorney's Office no longer in effect j) Policy, requiring supervision fees, not anticipated at the time the FY 2015 budget was prepared. Projection based on annualizing year to date k) Increased projection due to receipt of FY 2014 funds in FY 2015 Page 2 SHERIFF -Consolidated Statement of Financial Operating Data July 1, 2014 through November 30, 2014(42% FY 2014 of Fiscal Year) FY 2015 Actual Actual 1 %of Budget - Budget I Projection I $Variance Revenues (Funds 701 &702) Law Enf Dist Countywide 20,624,082 17,571,426 86% 20,365,842 21,048,059 682,217 Law Enf Dist Rural 12,526,331 10,130,691 79% 12,751,766 12,848,796 97,030 Total Revenues 33,150,413 27,702,117 84% 33,117,608 33,896,855 779,247 Expenditures(Fund 255) Sheriffs Services 2,308,182 1,028,642 42% 2,467,673 2,467,673 - Civil/Special Units 1,132,029 493,541 41% 1,192,980 1,192,880 100 Automotive/Communications 1,701,586 753,650 40% 1,886,365 1,886,265 100 Investigations/Evidence 1,418,744 663,762 41% 1,627,803 1,627,703 100 Patrol 8,247,222 3,498,787 40% a) 8,705,700 8,635,177 70,523 Records 761,260 287,446 36% a) 798,805 783,705 15,100 Adult Jail 14,277,113 6,285,866 41% b) 15,214,157 15,168,157 46,000 Court Security 294,563 129,048 43% 302,867 302,767 100 Emergency Services 194,888 64,965 37% c) 177,852 385,315 (207,463) Special Services 1,352,528 643,371 39% 1,655,424 1,655,424 - Training 506,938 201,104 36% 551,318 551,218 100 Other Law Enforcement Svcs 801,895 330,825 41% 806,044 811,207 (5,163) Non-Departmental 81,701 30,335 42% 72,813 72,813 - Total Expenditures 33,078,650 14,411,343 41% 35,459,801 35,540,304 (80,503) Revenues less Expenditures 71,763 13,290,774 (2,342,193) (1,643,449) 698,744 DC Comm Syst Reserve 200,000 200,000 100% 200,000 200,000 - Transfer to Reserve Funds 200,000 - 0% 200,000 200,000 - Change in Fund Balance (328,237) 13,090,774 (2,742,193) (2,043,449) 698,744 Beginning Fund Balance 9,553,793 9,225,556 120% 7,658,937 9,225,556 1,566,619 Ending Fund Balance $ 9,225,556 $ 22,316,330 $4,916,744 $7,182,107 $2,265,363 a)Due to unfilled positions, personnel expenses will be less than budgeted b)Due to unfilled positions, personnel expenses will be less than budgeted. Savings will be used for additional jail expansion and jail maintenance expenses not included in the budget c) Homeland Security Grant for Communications equipment was awarded in September. Expenses offset by grant revenue forecast in Fund 701 Page 3-A SHERIFF-Fund 255 Statement of Financial Operating Data July 1, 2014 through November 30, 2014 FY 2014 (42% of Fiscal Year) FY 2015 Actual Actual I Budget Budget I Projection I $ Variance Revenues(Fund 255) Law Enf Dist Countywide 20,817,324 9,162,855 36% 25,428,019 22,382,290 (3,045,729) Law Enf Dist Rural 12,278,716 5,248,488 35% 14,948,526 13,158,014 (1,790,512) Total Revenues 33,096,040 14,411,343 36% 40,376,545 35,540,304 (4,836,241) Expenditures (Fund 255) Sheriffs Services 2,308,182 1,028,642 42% 2,467,673 2,467,673 - Civil/Special Units 1,132,029 493,541 41% 1,192,980 1,192,880 100 Automotive/Communications 1,701,586 753,650 40% 1,886,365 1,886,265 100 Investigations/Evidence 1,418,744 663,762 41% 1,627,803 1,627,703 100 Patrol 8,247,222 3,498,787 40% a) 8,705,700 8,635,177 70,523 Records 761,260 287,446 36% a) 798,805 783,705 15,100 Adult Jail 14,277,113 6,285,866 41% b) 15,214,157 15,168,157 46,000 Court Security 294,563 129,048 43% 302,867 302,767 100 Emergency Services 194,888 64,965 37% c) 177,852 385,315 (207,463) Special Services 1,352,528 643,371 39% 1,655,424 1,655,424 - Training 506,938 201,104 36% 551,318 551,218 100 Other Law Enforcement Svcs 801,895 330,825 41% 806,044 811,207 (5,163) Non-Departmental 81,701 30,335 42% 72,813 72,813 - Total Expenditures 33,078,650 14,411,343 41% 35,459,801 35,540,304 (80,503) Revenues less Expenditures $ 17,390 - $4,916,744 $ - $(4,916,744) a) Due to unfilled positions, personnel expenses will be less than budgeted b) Due to unfilled positions, personnel expenses will be less than budgeted. Savings will be used for additional jail expansion and jail maintenance expenses not included in the budget c) Homeland Security Grant for Communications equipment was awarded in September. Expenses offset by grant revenue forecast in Fund 701 Page 3=B SHERIFF-Expenditure Detail Statement of Financial Operating Data July 1,2014 through November 30,2014(42% FY 2014 of Fiscal Year) FY 2015 Actual Actual I-%of Budget Budget [ Projection 1 $Variance Expenditures Sheriff's Services Personnel 1,342,795 590,544 41% 1,431,828 1,431,828 - Materials&Services 965,387 438,098 43% 1,020,745 1,020,745 - Capital Outlay - - 0% 15,100 15,100 - Total Sheriff's Services 2,308,182 1,028,642 42% 2,467,673 2,467,673 - Civil/Special Units Personnel 1,027,640 457,111 43% 1,073,870 1,073,870 - Materials&Services 104,389 36,430 31% 119,010 119,010 - Capital Outlay - - 0% 100 - 100 Total Civil/Special Units 1,132,029 493,541 41% 1,192,980 1,192,880 100 Automotive/Communications Personnel 400,169 165,659 41% 399,334 399,334 - Materials&Services 1,265,667 587,991 40% 1,486,931 1,486,931 - Capital Outlay 35,750 - 0% 100 - 100 Total Automotive/Communications 1,701,586 753,650 40% 1,886,365 1,886,265 100 I nvestigations/Evidence Personnel 1,277,983 593,694 40% 1,470,106 1,470,106 - Materials&Services 140,761 70,068 44% 157,597 157,597 - Capital Outlay - - 0% 100 - 100 Total Investigations/Evidence 1,418,744 663,762 41% 1,627,803 1,627,703 100 Patrol Personnel 7,450,178 3,127,013 40% 7,728,332 7,657,809 70,523 Materials&Services 547,770 233,937 37% 636,868 636,868 - CapitalOutlay 249,274 137,837 40% 340,500 340,500 - Total Patrol 8,247,222 3,498,787 40% 8,705,700 8,635,177 70,523 Records Personnel 659,297 271,705 39% 692,244 677,244 15,000 Materials&Services 101,963 15,741 15% 106,461 106,461 Capital Outlay - - 0% 100 - 100 Total Records 761,260 287,446 36% 798,805 783,705 15,100 Adult Jail Personnel 11,899,534 5,179,022 41% 12,675,178 12,563,178 112,000 Materials&Services 2,069,651 856,277 42% 2,039,314 2,078,314 (39,000) Capital Outlay 63,176 33,434 160% 20,900 47,900 (27,000) Transfer Out-Jail(D/S&Cap Proj) 244,752 217,133 45% 478,765 478,765 - TotalAdultJail 14,277,113 6,285,866 41% 15,214,157 15,168,157 46,000 Court Security Personnel 284,173 123,619 42% 292,715 292,715 - Materials&Services 10,390 5,429 54% 10,052 10,052 - Capital Outlay - - 0% 100 - 100 Total Court Security 294,563 129,048 43% 302,867 302,767 100 Emergency Services Personnel 169,170 59,653 40% 147,942 147,942 - Materials&Services 25,718 5,312 18% 29,810 237,373 (207,563) Capital Outlay - - 0% 100 - 100 Total Emergency Services 194,888 64,965 37% 177,852 385,315 (207,463) Special Services Personnel 1,152,258 518,248 41% 1,273,721 1,273,721 - Materials&Services 183,769 60,376 27% 223,703 223,703 - Capital Outlay 16,500 64,747 41% 158,000 158,000 - Total Special Services 1,352,528 643,371 39% 1,655,424 1,655,424 - Traininq Personnel 385,634 168,818 40% 416,955 416,955 - Materials&Services 121,303 32,286 24% 134,263 134,263 - Capital Outlay - - 0% 100 - 100 Total Training 506,938 201,104 36% 551,318 551,218 100 Other Law Enforcement Services Personnel 731,122 272,939 38% 717,594 717,594 - Materials&Services 70,773 45,583 56% 81,310 81,310 - Capital Outlay - 12,303 172% 7,140 12,303 (5,163) Total Other Law Enforcement Svcs 801,895 330,825 41% 806,044 811,207 (5,163) Non-Departmental Materials&Services 81,701 30,335 42% 72,813 72,813 - Total Non-Departmental 81,701 30,335 42% 72,813 72,813 - Total Expenditures $ 33,078,650 $14,411,343 41% $35,459,801 $35,540,304 $ (80,503) pag0 4 LED#1 -Countywide Statement of Financial Operating Data July 1, 2014 through November 30, 2014(42%of FY 2014 Fiscal Year) FY 2015 Actual Actual I %of Budget Budget [ Projection I $Variance Revenues Tax Revenues -Current 16,698,208 15,885,870 92% a) 17,292,244 17,542,244 250,000 Tax Revenues-Prior 532,040 257,855 71% 360,700 360,700 - SB 1145 1,630,823 814,508 50% b) 1,628,947 1,628,947 - Sheriff Fees 365,577 166,610 79% c) 210,000 300,000 90,000 Concealed Handgun License - 66,976 45% 150,000 150,000 - Jail Funding HB 3194 107,806 107,805 100% 107,806 107,806 - Jail Funding HB 2712 36,311 18,113 39% 46,143 46,143 - State Grant 85,781 19,250 23% d) 85,370 292,933 207,563 Prisoner Housing 329,918 66,125 83% e) 80,000 220,000 140,000 Inmate Telephone Fee 83,297 18,066 23% f) 80,000 50,000 (30,000) Federal Grants 20,897 10,072 50% 20,000 20,000 - Work Center Work Crews 69,723 19,669 39% 50,000 50,000 - Contracts with Des County 475,815 26,042 43% g) 60,632 85,286 24,654 Inmate Commissary Fees 32,480 10,569 42% 25,000 25,000 - Interest 50,563 12,944 32% 40,000 40,000 - Donations-"Shop with a Cop" 38,361 48,963 75% 65,000 65,000 - Miscellaneous 66,441 21,988 34% 64,000 64,000 - Total Operating Revenues 20,624,082 17,571,426 86% 20,365,842 21,048,059 682,217 EXPENDITURES&TRANSFERS DC Sheriff's Office 20,817,324 9,162,855 36% 25,428,019 22,382,290 3,045,729 DC Comm Systems Reserve 80,000 80,000 100% 80,000 80,000 - Transfer to Reserve Fund 100,000 - 0% 100,000 100,000 - Total Expenditures 20,997,283 9,242,855 36% 25,608,019 22,562,290 3,045,729 Change in Fund Balance (373,200) 8,328,571 (5,242,177) (1,514,231) 3,727,946 Beginning Fund Balance 6,507,110 6,133,909 117% 5,242,177 6,133,909 891,732 Ending Fund Balance $ 6,133,909 $ 14,462,480 $ - $4,619,679 $4,619,679 a)Current year taxes received beginning in October b) 1st Qtr&2nd quarter payments received in October c) Fees from distressed property sales and civil papers projected to exceed budget due to continued higher volume d) Homeland Security Grant for communications equipment awarded in September e)SB 395 inmate reimbursement revenue is projected to exceed budget due to number of repeat DUI inmates f) Inmate telephone fees will be less due to changes in commission fees on interstate calls g)Transfer from Fund 240 for Court Security will be higher than planned Page 5 LED#2-Rural 702 Statement of Financial Operating Data July 1, 2014 through November 30, 2014(42% FY 2014 of Fiscal Year) FY 2015 Actual Actual %of Budget Budget Projection I $Variance Revenues Tax Revenues-Current 7,988,657 7,573,082 92% a) 8,272,852 8,372,852 100,000 Tax Revenues -Prior 262,227 125,103 74% 169,000 169,000 - Des Cty Transient Room Tax 2,838,797 1,960,708 67% 2,920,654 2,920,654 - City of Sisters 486,678 217,920 42% 523,010 523,010 - Marine Board License Fee 155,221 50,319 30% 169,000 169,000 - State Grant 124,246 33,021 25% b) 130,600 130,600 - Court Fines&Fees 135,023 52,177 40% 130,000 130,000 - Contracts with Des County 119,984 51,122 42% 121,650 121,650 - US Forest Service 101,375 22,625 30% 76,500 76,500 - School Districts 65,088 2,241 4% c) 55,000 55,000 - Federal Grants 84,285 8,736 21% d) 42,000 42,000 - Bureau of Reclamation 24,023 - 0% c) 27,000 27,000 - Interest 21,715 8,099 39% 21,000 21,000 - SB#1065 Court Assessment 17,435 8,330 56% 15,000 15,000 - Federal Grants-BLM 16,213 - 0% e) 10,000 - (10,000) Donations &Grants-Private 12,030 7,030 n/a - 7,030 7,030 Miscellaneous 73,333 10,179 15% 68,500 68,500 - Total Revenues 12,526,331 10,130,691 79% 12,751,766 12,848,796 97,030 EXPENDITURES &TRANSFERS DC Sheriffs Office 12,278,716 5,248,488 35% 14,948,526 13,158,014 1,790,512 DC Comm Systems Reserve 120,000 120,000 100% 120,000 120,000 - Transfer to Reserve Fund 100,000 - 0% 100,000 100,000 - Total Expenditures 12,498,716 5,368,488 35% 15,168,526 13,378,014 1,790,512 Change in Fund Balance 27,614 4,762,204 (2,416,760) (529,218) 1,887,542 Beginning Fund Balance 3,046,683 3,074,297 127% 2,416,760 3,074,297 657,537 Ending Fund Balance $ 3,074,297 $ 7,836,501 $ - $2,545,079 $2,545,079 a)Current year taxes received beginning in October b) DUI! overtime grant reimbursements not yet received c)Quarterly billing in arrears, service levels in future quarters will be higher d)Justice Assistance Grant not yet received e) BLM notified DCSO that contract would not be renewed after FY 2015 Budget was adopted Page 6 PUBLIC HEALTH Statement of Financial Operating Data July 1, 2014 through November 30, 2014 FY 2014 (42%of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection I $Variance Revenues State Grant 2,878,140 1,241,455 39% a) 3,202,798 3,385,861 183,063 Environmental Health-Lic Fac 767,248 78,945 10% b) 779,450 779,450 - OMAP 812,441 336,149 51% 655,250 825,250 170,000 Family Planning Exp Proj 400,900 92,138 17% 550,000 230,000 (320,000) Interfund Grants &Contract 95,011 471,293 381% a) 123,618 476,976 353,358 Grants(Intergvt, Pvt, &Local) 139,171 6,496 2% 269,678 216,775 (52,903) Patient Insurance Fees 232,968 40,768 21% 196,400 196,400 - State Miscellaneous 229,520 1,723 1% a)c) 162,352 120,336 (42,016) Federal Payments 161,576 69,906 69% a) 101,585 171,491 69,906 Vital Records-Death 100,535 60,615 61% 100,000 100,000 - Health Dept/Patient Fees 80,653 20,888 26% 80,216 80,216 - Contract Payments 92,637 3,438 5% a) 69,291 3,438 (65,853) Vital Records-Birth 36,655 14,860 36% 41,000 41,000 - Child Dev& Rehab Center 52,433 613 2% c) 39,609 30,759 (8,850) Interest on Investments 9,077 5,174 86% 6,000 13,000 7,000 Grants &Donations 38,192 49,747 3316% a) 1,500 50,629 49,129 Miscellaneous 10,135 18,646 666% 2,800 20,000 17,200 Total Revenues 6,137,293 2,512,854 39% 6,381,547 6,741,581 360,034 Expenditures Personnel Services 6,457,193 2,748,156 40% 6,876,305 6,700,000 176,305 Materials and Services 2,043,710 758,678 36% d) 2,090,131 2,421,670 (331,539) Capital Outlay - 20,000 99% 20,200 20,000 200 Transfers Out 157,320 41,160 25% 164,640 164,640 - Total Expenditures 8,658,223 3,567,994 39% 9,151,276 9,306,310 (155,034) Revenues less Expenditures (2,520,930) (1,055,140) (2,769,729) (2,564,729) 205,000 Transfers In-General Fund 2,701,475 1,125,615 42% 2,701,475 2,701,475 - Transfers In-PH Res Fund 33,000 - n/a - - - Transfers In-Gen. Fund Other 65,100 16,275 25% 65,100 65,100 - Total Transfers In 2,799,575 1,141,890 41% 2,766,575 2,766,575 - Change in Fund Balance 278,645 86,750 (3,154) 201,846 205,000 Beginning Fund Balance 1,273,934 1,552,578 99% 1,570,821 1,552,578 (18,243) Ending Fund Balance $ 1,552,578 $ 1,639,328 $ 1,567,667 $ 1,754,424 $ 186,757 a)Grants and contracts projected at amended contract amounts b)Majority of fees are due annually and collected in December&January c) Received quarterly, in arrears d) M &S increased to reflect amended grants and contracts.Appropriation will be increased as necessary Page 7 BEHAVIORAL HEALTH Statement of Financial Operating Data July 1, 2014 through November 30, 2014 FY 2014 (42%of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection I $Variance Revenues Administrative Fee 8,260,932 4,651,155 41% 11,210,767 11,210,767 - State Grants 7,801,239 3,526,269 37% a) 9,589,680 9,170,999 (418,681) OHP Capitation 469,069 116,401 30% 390,000 436,046 46,046 Federal Grants 184,980 71,664 35% 204,849 201,879 (2,970) Patient Fees 219,846 75,616 38% 201,610 201,610 - Title 19 246,484 106,905 59% 180,300 180,300 - Liquor Revenue 142,665 49,664 33% 151,000 151,000 - Divorce Filing Fees 129,788 53,532 38% 140,600 140,600 - Interfund Contract-Gen Fund 127,000 36,412 29% 127,000 127,000 - School Districts 6,952 - 0% b) 65,000 - (65,000) Federal Grant(ARRA) 63,750 - 0% 34,000 34,000 - Interest on Investments 21,190 12,544 64% 19,500 19,500 - Rentals 16,000 1,000 5% 18,800 18,800 - Marriage Licenses 6,540 3,520 54% 6,500 6,500 - Local Grants 52,891 335,876 n/a c) - 335,876 335,876 Claims Reimbursement 12,918 - n/a - - - State Miscellaneous 31,820 11,200 nla - 11,200 11,200 Justice Reinvestment HB3194 120,000 - n/a - - - Miscellaneous 28,157 2,108 40% 5,318 5,318 - Total Revenues 17,942,221 9,053,866 41% 22,344,924 22,251,395 (93,529) Expenditures Personnel Services 12,415,866 5,829,020 38% 15,502,876 14,500,000 1,002,876 Materials and Services 6,738,744 2,446,390 27% 8,938,569 8,587,733 350,836 Capital Outlay - - 0% 100 - 100 Transfers Out 204,900 51,225 25% 204,900 204,900 - Total Expenditures 19,359,510 8,326,635 34% 24,646,445 23,292,633 1,353,812 Revenues less Expenditures (1,417,289) 727,232 (2,301,521) (1,041,238) 1,260,283 Transfers In-General Fund 1,377,302 573,875 42% 1,377,302 1,377,302 - Transfers In-Acute Care Svcs 293,593 78,164 42% 187,594 187,594 - Total Transfers In 1,670,895 652,039 42% - 1,564,896 1,564,896 - Change in Fund Balance 253,606 1,379,271 (736,625) 523,658 1,260,283 Beginning Fund Balance 2,671,137 2,924,742 88% 3,313,248 2,924,742 (388,506) Ending Fund Balance $2,924,742 $4,304,013 $2,576,623 $3,448,400 $ 871,777 a)Oregon Health Authority grant projected at amended contract amount b)Contract not executed c)Grant payments received in FY 2014 will be reported as FY 2015 revenue Page 8 i COMMUNITY DEVELOPMENT Statement of Financial Operating Data , July 1, 2014 through November 30, 2014 FY 2014 (42% of Fiscal Year) FY 2015 of Actual Actual Budget Budget Projection I $Variance Revenues Admin-Operations 40,102 22,011 43% a) 51,225 48,206 (3,019) Admin-GIS 2,944 125 5% 2,500 2,500 - Admin-Code Enforcement 261,188 135,201 50% 273,000 309,859 36,859 Building Safety 1,748,911 899,157 56% 1,616,713 1,858,579 241,866 Electrical 408,194 188,474 45% 418,506 418,506 - Contract Services 264,039 117,498 56% 211,500 211,500 - Env Health-On Site Prog 448,367 180,967 41% 437,358 437,358 - Planning-Current 917,674 488,785 54% 902,876 1,060,999 158,123 Planning-Long Range 440,222 224,240 40% 560,658 572,451 11,793 Total Revenues 4,531,641 2,256,458 50% 4,474,336 4,919,958 445,622 Expenditures Admin-Operations 1,590,779 719,615 48% 1,500,181 1,500,181 - Admin-GIS 123,751 51,761 40% 129,011 129,011 - Admin-Code Enforcement 275,521 118,401 40% 297,852 297,852 - Building Safety 688,035 313,580 38% b) 822,664 852,164 (29,500) Electrical 217,271 96,270 41% 234,152 234,152 - Contract Services 220,779 115,322 41% 281,699 281,699 - Env Health-On Site Pgm 181,831 86,360 31% c) 274,228 279,228 (5,000) Planning-Current 666,180 312,757 44% d) 706,730 738,230 (31,500) Planning-Long Range 425,323 171,219 31% e) 553,993 663,993 (110,000) Transfers Out(D/S Fund) 179,035 156,000 90% 173,673 156,000 17,673 Total Expenditures 4,568,505 2,141,285 43% 4,974,183 5,132,510 (158,327) Revenues less Expenditures (36,864) 115,173 (499,847) (212,552) 603,949 Transfers In/Out In:General Fund-L/R Planning 495,360 69,488 42% 166,770 166,770 - Out:A&T Reserve (90,360) (90,360) (90,360) - Out:CDD Reserve Funds - - 0% (687,470) (687,470) - Net Transfers In/Out 495,360 (20,873) (611,060) (611,060) - Change in Fund Balance 458,496 94,301 (1,110,907) (823,612) 287,295 Beginning Fund Balance 1,578,705 2,037,201 128% 1,589,113 2,037,201 448,088 Ending Fund Balance $2,037,201 $2,131,502 $ 478,206 $1,213,589 $ 735,383 a) Reduction is due to vacant tenant space(projected at$20,000; no current tenant) b)$22,000 for Building Division portion of Fee Study&Financial Plan and $7,500 for vehicle printers c)$5,000 for Environmental Health portion of Fee Study& Financial Plan d)$22,000 for Planning Division portion of Fee Study& Financial Plan and TML for retired staff e)Senior Planner position and consulting fees Note: b)-e)Appropriation will be increased as necessary Page 9 ROAD Statement of Financial Operating Data July 1, 2014 through November 30, 2014 FY 2014 (42% of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection I $Variance Revenues Motor Vehicle Revenue 11,300,058 4,721,406 42% a) 11,220,000 11,129,000 (91,000) Forest Receipts 1,259,367 130 0% b) 1,140,950 1,140,950 - Federal - PILT Payment 1,064,365 1,250,809 123% c) 1,020,000 1,250,809 230,809 Other Inter-fund Services 850,395 104,171 11% d) 971,700 971,700 - Cities-Bend/Redmond/Sisters 1,097,444 62,382 8% e) 804,200 804,200 - State Miscellaneous 595,804 602,629 100% 602,629 602,629 - Sale of Equip&Material 275,086 41,590 15% 271,000 271,000 - Assessment Payments(P&I) 15,058 87,758 39% 225,840 225,840 - Mineral Lease Royalties 206,097 23,807 17% 140,000 140,000 - Interest on Investments 49,562 28,117 88% 32,000 32,000 - Miscellaneous 117,069 19,084 75% 25,500 25,500 - Total Revenues 16,830,304 6,941,884 42% 16,453,819 16,593,628 139,809 Expenditures Personnel Services 5,313,126 2,276,199 41% f) 5,555,695 5,630,775 (75,080) Materials and Services 8,051,744 3,500,928 33% 10,622,604 10,622,604 - Debt Service - 106,578 91% g) 117,000 106,578 10,422 Capital Outlay 121,455 1,096,327 12% 8,875,507 8,875,507 - Transfers Out 450,000 - 0% 600,000 600,000 - Total Expenditures 13,936,325 6,980,032 27% 25,770,806 25,835,464 (64,658) Revenues less Expenditures 2,893,978 (38,148) (9,316,987) (9,241,836) 75,151 Trans In -Solid Waste 282,148 74,539 25% h) 298,156 298,156 - Trans In -Transp SDC - - 0% i)j) 2,000,000 750,000 (1,250,000) Trans In-Road Imp Res - - 0% i) 1,000 - (1,000) Total Transfers In 282,148 74,539 3% 2,299,156 1,048,156 (1,251,000) Change in Fund Balance 3,176,126 36,391 (7,017,831) (8,193,680) (1,175,849) Beginning Fund Balance 6,846,576 10,022,703 112% 8,954,332 10,022,703 1,068,371 Ending Fund Balance $ 10,022,703 $10,059,094 $ 1,936,501 $1,829,022 $ (107,479) a) Per Year-to-date State Highway Fund Revenue Model b)Payment received annually in February c)PILT payment received July 2014 d) Inter-fund service billed at year end e)Billed and collected upon completion of work f) Unbudgeted expenses related to unanticipated retirements g) Final payments of two LID loans made in July 2014 h)Transfers made quarterly i)Transfer In-June 2015 Page 10 j) Revised cash-flow estimate for CIP Projects extending into FY 16 ADULT PAROLE &PROBATION Statement of Financial Operating Data July 1, 2014 through November 30, 2014 FY 2014 (42%of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection I $Variance Revenues SB 1145 3,028,672 1,512,658 50% 3,025,187 3,025,187 - DOC Measure 57 220,788 217,845 99% a) 220,788 217,845 (2,943) Electronic Monitoring Fee 235,642 89,168 41% 220,000 220,000 - Probation Superv. Fees 208,461 85,272 45% 190,000 190,000 - Interfund -Sheriff 50,000 20,835 42% 50,000 50,000 - Crime Prevention Grant 50,000 12,500 25% b) 50,000 50,000 - CFC-Domestic Violence 70,242 17,560 37% b) 47,996 47,996 - State Subsidy 14,677 7,480 49% 15,158 15,158 - Alternate Incarceration 17,725 15,509 103% c) 15,000 20,000 5,000 Interest on Investments 7,807 3,376 55% 6,150 6,150 - Probation Work Crew Fees 9,137 4,569 92% 4,950 6,000 1,050 State Miscellaneous 4,142 - 0% d) 4,301 4,301 - Leases 1,323 - 0% 1,500 1,500 - Claims Reimbursement 6,997 - n/a - - - Justice Reinvest HB3194 458,143 - n/a - - - Miscellaneous 671 168 34% 500 500 - Total Revenues 4,384,428 1,986,939 52% 3,851,530 3,854,637 3,107 Expenditures Personnel Services 3,343,789 1,464,239 40% 3,623,526 3,623,526 - Materials and Services 1,107,365 392,413 34% 1,148,766 1,148,766 - Capital Outlay - - 0% 100 - 100 Total Expenditures 4,451,154 1,856,652 39% 4,772,392 4,772,292 100 Revenues less Expenditures (66,726) 130,287 (920,862) (917,655) 3,207 Transfers In-General Fund 451,189 187,995 42% 451,189 451,189 - Change in Fund Balance 384,463 318,282 (469,673) (466,466) 3,207 Beginning Fund Balance 747,520 1,131,982 110% 1,030,824 1,131,982 101,158 Ending Fund Balance $ 1,131,982 $ 1,450,264 $ 561,151 $ 665,516 $ 104,365 a)Annual payment received in July b) Interfund grants. Received when invoiced c) Invoiced quarterly. Greater utilization d)Annual payment expected in February Page 11 EARLY LEARNING HUB Statement of Financial Operating Data July 1, 2014 through FY 2014 November 30, 2014 Note 1 (42%of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection $Variance Revenues Federal Grants 258,463 67,119 43% 157,390 232,125 74,735 Title IV-Family Sup/Pres 21,994 - 0% a) 21,994 - (21,994) HealthyStart Medicaid 60,561 23,223 39% 60,000 60,000 - Youth Investment 124,493 - n/a - - - State Grant 55,185 - n/a - - - HealthyStart/R-S-G 249,125 84,591 33% a) 254,623 292,086 37,463 OCCF Grant 132,326 - 0% a) 39,499 37,500 (1,999) Charges for Svcs-Misc 4,138 - n/a - - - Program Fees 4,710 - n/a - - - Miscellaneous 1,269 63% 2,000 2,000 - Court Fines &Fees 77,873 32,119 42% 77,086 77,086 - Interest on Investments 2,868 1,000 40% 2,500 2,500 - Donations 50 - n/a - - - Private Grant 130 - n/a - - Sale of Assets 450 - n/a - - - Interfund Grants 329,624 - 0% 7,260 7,260 - Total Revenues 1,321,991 209,322 34% 622,352 710,557 88,205 Expenditures Personnel Services 501,770 106,591 41% 258,410 258,410 - Materials and Services 1,402,021 246,073 32% b) 766,142 854,347 (88,205) Total Expenditures 1,903,791 352,664 34% 1,024,552 1,112,757 (88,205) Revenues less Expenditures (581,800) (143,342) (402,200) (402,200) - Transfers In General Fund 278,739 105,120 42% 252,288 252,288 - General Fund-Other 89,350 22,338 25% 89,350 89,350 - Total Transfers In 368,089 127,458 37% 341,638 341,638 - Change in Fund Balance (213,711) (15,884) (60,562) (60,562) - Beginning Fund Balance 548,572 334,861 _ 105% 318,121 334,861 16,740 Ending Fund Balance $ 334,861 $ 318,977 $ 257,559 $ 274,299 $ 16,740 Note 1:Through June 30, 2014 activity included Children & Families Commission a)Grants projected at amended contract amount b) M &S increase related to amended grant contracts Page 12 SOLID WASTE Statement of Financial Operating Data July 1, 2014 through November 30, 2014 FY 2014 (42%of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection $Variance Operating Revenues Franchise Disposal Fees 4,209,029 1,989,856 45% 4,413,809 4,413,809 - Private Disposal Fees 1,518,056 708,047 46% 1,550,430 1,550,430 - Commercial Disp. Fees 1,076,538 564,815 52% 1,082,144 1,082,144 - Franchise 3% Fees 210,053 16,309 8% a) 210,000 210,000 - Yard Debris 98,410 58,854 64% 92,000 92,000 - Recyclables 33,345 20,070 45% 45,000 45,000 - Special Waste 40,873 6,487 26% b) 25,000 25,000 - Interest 11,028 6,995 70% 10,000 10,000 - Leases 10,801 4,500 42% 10,801 10,801 - Miscellaneous 21,508 10,976 55% 20,000 20,000 - Total Operating Revenues 7,229,641 3,386,909 45% c) 7,459,184 7,459,184 - Operating Expenditures Personnel Services 1,777,663 769,663 40% 1,936,555 1,936,555 - Materials and Services 3,214,375 1,156,688 34% 3,435,926 3,435,926 - Debt Service 930,157 381,624 41% d) 929,794 929,794 - Capital Outlay 25,895 57,128 25% 227,000 227,000 - Total Operating Expenditures 5,948,091 2,365,103 36% 6,529,275 6,529,275 - Operating Rev less Exp 1,281,550 1,021,805 929,909 929,909 - Transfers Out Road 282,148 74,539 25% e) 298,156 298,156 - SW Capital & Equipment Reserve 545,000 275,000 18% f) 1,525,000 1,525,000 - Total Transfers Out 827,148 349,539 19% 1,823,156 1,823,156 - Change in Fund Balance 454,402 672,266 (893,247) (893,247) - Beginning Fund Balance 1,224,767 1,679,169 118% 1,428,003 1,679,169 251,166 Ending Fund Balance $ 1,679,169 $2,351,436 $ 534,756 $ 785,922 $ 251,166 a) Payments due April 15th b) Unpredictable revenue c) Revenues fluctuate with the weather/seasons d)Payments made November and May e)Transfer made quarterly f)Transfer made as resources required Page 13 RISK MANAGEMENT Statement of Financial Operating Data July 1, 2014 through November 30, 2014(42% FY 2014 of Fiscal Year) FY 2015 Actual _ Actual %of Budget Budget Projection I $Variance Revenues Inter-fund Charges: General Liability 272,823 158,245 42% 379,793 379,793 - Property Damage 326,526 163,460 42% 392,304 392,304 - Vehicle 164,150 73,980 42% 177,550 177,550 - Workers'Compensation 1,520,352 650,725 42% 1,561,804 1,561,804 - Unemployment 318,566 134,170 42% 317,000 317,000 - Claims Reimb-Gen Liab/Property 139,123 22,288 111% 20,000 27,000 7,000 Process Fee-Events/Parades 1,400 395 30% 1,300 1,300 - Miscellaneous 14 - 0% 110 110 - Skid Car Training 27,540 6,480 27% 24,000 24,000 - Interest on Investments 15,567 8,467 56% 15,050 15,050 - TOTAL REVENUES 2,786,061 1,218,210 42% 2,888,911 2,895,911 7,000 Direct Insurance Costs: I GENERAL LIABILITY Settlement/Benefit 268,561 37,078 Defense 49,872 2,529 Professional Service 33,139 8,220 Insurance 161,994 165,361 a) Loss Prevention 4,659 10,434 Miscellaneous 5,619 - Repair/Replacement 4,531 4,974 Total General Liability 528,374 228,597 57% 400,000 440,000 (40,000) PROPERTY DAMAGE Insurance 166,668 178,556 a) Repair/Replacement 211,158 2,451 Total Property Damage 377,826 181,007 72% 250,000 250,000 - VEHICLE Professional Service 875 - Insurance 205 19 Loss Prevention 22,021 4,534 Repair/Replacement 69,276 29,940 Total Vehicle 92,377 34,492 29% 120,000 120,000 - WORKERS'COMPENSATION Settlement/Benefit 478,204 183,890 Professional Service 5,000 5,000 Insurance 155,474 105,645 a) Loss Prevention 44,261 12,790 Miscellaneous 52,488 13,131 Total Workers'Compensation 735,427 320,457 53% 600,000 800,000 (200,000) UNEMPLOYMENT-Settlement/Benefits 102,324 25,920 13% b) 200,000 190,000 10,000 Total Direct Insurance Costs 1,836,329 790,472 50% 1,570,000 1,800,000 (230,000) Insurance Administration: Personnel Services 324,005 124,799 38% 330,406 330,406 - Materials&Srvc, Capital Out. &Tranfs. 146,109 55,588 28% 199,140 199,140 - Total Expenditures 2,306,443 970,859 46% 2,099,546 2,329,546 (230,000) Change in Fund Balance 479,618 247,351 789,365 566,365 (223,000) Beginning Fund Balance 2,631,057 3,110,676 101% 3,074,957 3,110,676 35,719 Ending Fund Balance $3,110,676 $3,358,026 * $ 3,864,322 $ 3,677,041 $ (187,281) a)Annual premiums paid in July b)Payments made quarterly Page 14 DESCHUTES COUNTY 9-1-1 Statement of Financial Operating Data , July 1, 2014 through November 30, 2014 FY 2014 (42%of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection I $Variance Revenues Property Taxes-Current 6,258,760 6,011,239 93% a) 6,482,015 6,612,015 130,000 Property Taxes-Prior 203,163 96,644 70% 138,000 138,000 - Federal Grants 46,514 - 0% b) 150,000 150,000 - State Reimbursement 41,813 13,323 37% 36,000 36,000 - Telephone User Tax 756,775 194,794 26% c) 750,000 750,000 - Data Network Reim b. 43,943 - 0% d) 30,000 30,000 - Jefferson County 29,758 26,814 89% 30,000 30,000 - User Fee 53,229 2,156 5% d) 45,000 45,000 - Police RMS User Fees 236,717 14,064 5% d) 295,788 295,788 - Contract Payments 39,075 - 0% d) 11,000 11,000 - Miscellaneous 45,553 7,964 88% 9,000 9,000 - Claims Reimbursement 29,857 - n/a - - - Interest 40,303 9,369 31% 30,600 30,600 - Total Revenues 7,825,460 6,376,366 80% 8,007,403 8,137,403 130,000 Expenditures Personnel Services 4,420,333 1,919,961 35% 5,521,419 5,521,419 - Materials and Services 1,996,805 1,003,046 48% 2,077,868 2,077,868 - Capital Outlay 66,498 229,639 66% e) 350,000 350,000 - Total Expenditures 6,483,636 3,152,646 40% 7,949,287 7,949,287 - Revenues less Expenditures 1,341,824 3,223,720 58,116 188,116 130,000 Transfers Out- Reserve Fund 7,800,000 - n/a - - - Change in Fund Balance (6,458,176) 3,223,720 58,116 188,116 130,000 Beginning Fund Balance 10,398,030 3,939,854 116% 3,410,000 3,939,854 529,854 Ending Fund Balance $ 3,939,854 $ 7,163,574 $ 3,468,116 $4,127,970 $ 659,854 a) Current year taxes received beginning in October b) Reimbursement grant. No eligible expenditures made yet in FY 2015 c)Quarterly payments d)Annual billing in December e) Parking lot progress payment Page 15 Health Benefits Trust Statement of Financial Operating Data FY 2014 FY 2015 July 1,2014 Actual through November %of FY 2015 FY 2015 $Variance 30,2014(42%of Budget Budget Projection Fiscal Year) Revenues: Internal Premium Charges $ 14,485,502 $ 6,659,363 43% a) $15,517,000 $15,966,200 $ 449,200 Part-Time Employee Premium 16,955 8,431 42% b) 20,000 20,235 235 Employee Monthly Co-Pay 813,125 359,945 44% b) 810,000 863,868 53,868 COIC 1,595,847 757,994 45% b) 1,670,000 1,819,185 149,185 Retiree/COBRA Co-Pay 1,061,986 445,285 35% b) 1,260,000 1,068,683 (191,317) Prescription Rebates 154,981 47,242 43% 110,000 110,000 - Claims Reimbursements&Misc 2,419 169 0% 50,000 50,000 - Interest 67,057 34,370 48% 72,000 82,500 10,500 Total Revenues 18,197,871 8,312,799 43% 19,509,000 19,980,671 471,671 Expenditures: I Personnel Services(all depts) 129,509 51,357 35% 144,917 144,917 - Materials&Services Admin&Wellness Claims Paid-Medical 11,633,134 5,088,337 41% c) 12,552,108 12,048,002 504,106 Claims Paid-Prescription 657,550 304,220 43% c) 709,494 666,908 42,586 Claims Paid-DentaWision 1,731,608 704,771 38% c) 1,868,398 1,703,451 164,947 Claims Refunds (182,448) (229,291) n/a - (229,291) 229,291 Stop Loss Insurance Premium 275,052 132,271 33% 400,000 350,000 50,000 State Assessments 67,753 - 0% 215,000 215,000 - Administration Fee(EMBS) 333,188 165,312 48% 343,000 410,000 (67,000) Preferred Provider Fee 49,712 16,704 29% 57,200 40,000 17,200 Other-Administration 42,969 19,396 43% 44,642 44,642 - Other-Wellness 117,775 70,397 36% 195,970 195,970 - Admin&Wellness 14,726,294 6,272,116 38% 16,385,812 15,444,682 941,130 Deschutes On-site Clinic Contracted Services 850,209 309,665 33% 943,500 943,500 - Medical Supplies 54,806 23,009 66% 35,000 60,000 (25,000) Other 27,016 8,286 31% 26,777 26,777 Total DOC 932,031 340,960 34% 1,005,277 1,030,277 (25,000) Deschutes On-site Pharmacy Contracted Services 314,801 72,654 24% 306,000 306,000 - Prescriptions 1,588,726 391,261 23% d) 1,696,000 1,565,000 131,000 Other 13,250 5,527 41% 13,321 13,321 - Total Pharmacy 1,916,777 469,442 23% 2,015,321 1,884,321 131,000 Total Expenditures 17,704,610 7,133,875 36% 19,551,327 18,504,197 1,047,130 Change in Fund Balance 493,261 1,178,923 (42,327) 1,476,474 1,518,801 Beginning Fund Balance 11,967,822 $ 12,461,082 108% 11,585,710 12,461,082 875,372 Ending Fund Balance $ 12,461,082 $ 13,640,005 $11,543,383 $13,937,556 $2,394,173 %of Exp covered by Revenues 102.8% 116.5% 99.8% 108.0%1 a) Projection is amount budgeted as Health/Dental Insurance expenditures in the operating funds b) Year to Date annualized c) Average of YTD annualized and 12 month rolling average Page 16 d) Invoice for September 2014 was paid in October-$126,802. Projection is YTD Annualized FAIR AND EXPO CENTER Statement of Financial Operating Data Through November 30, 2014 FY 2015-Year to Date(42% FY 2014 of Year FY 2015 Actual Actual J %of Budget Budget I Projection I $Variance Operating Revenues Events Revenues $ 458,147 $ 229,898 36.8% $ 625,000 $ 549,580 $ (75,421) Storage 35,590 16,322 36.3% 45,000 47,322 2,322 Camping at F&E 22,866 215 1.3% 16,000 16,000 - Horse Stall Rental 52,084 3,030 5.7% 52,769 52,769 - Food&Beverage Activities, net 10,486 15.5% a) 67,831 50,057 (17,774) Concession %-Food 97,917 11,411 100.0% b) 11,411 11,411 - Annual County Fair(net) 205,000 200,000 100.0% c) 200,000 245,000 45,000 Miscellaneous 6,648 8,576 108.6% 7,900 9,975 2,075 Total Operating Revenues 878,251 479,937 46.8% 1,025,911 982,113 (43,798) Operating Expenditures: General F&E Activities Personnel Services 895,582 389,051 42.0% 926,183 926,183 (0) Materials and Services 657,882 231,237 45.5% 508,386 555,333 (46,947) Total Operating Expenditures 1,553,464 620,289 43.2% 1,434,569 1,481,516 (46,947) i Results of Operations (675,213) (140,352) (408,658) (499,403) (90,745)1 Non-Operating Revenues Transfer-General Fund 374,186 152,085 41.7% 365,000 365,000 - Transfer-Room Tax-(Fund 160) 262,900 47,451 43.7% 108,544 110,770 2,226 Transfer-Fair&Expo Reserve 100,000 - n/a - - - Interest 409 307 n/a - 307 307 Grants 176,289 280 n/a - 280 280 Rights&Signage 72,000 20,585 25.7% 80,000 81,685 1,685 Total Non-Operating Revenues 985,784 220,708 39.9% 553,544 558,042 4,498 Non-Operating Expenditures Debt Service 112,974 68,281 60.8% 112,213 112,213 0 Capital Outlay 176,289 - 0.0% 100 - 100 Total Non-Operating Expenditures 289,263 68,281 60.8% 112,313 112,213 100 TRT-1%for Marketing Revenues(Fund 170) - 18,298 6.3% 292,333 288,850 (3,483) Less: Expenditures _ 14,980 18,298 6.3% 288,850 288,850 - Net TRT 1%for Marketing (14,980) - 3,483 - (3,483) Change in Fund Balance 6,328 12,076 36,056 (53,574) (89,630) Beginning Fund Balance (6,673) (345) -0.4% 87,000 (345) (87,345) Ending Fund Balance $ (345) $ 11,730 $ 123,056 $ 153,919) $ (176,975) a) See Food&Beverage Schedule b) July and August Contract with Premier Services c) Revenues and Expenses for the annual fair recorded in a separate fund and the available net income is transferred to the Fair&Expo Center Fund Page 17 Deschutes County Food and Beverage Schedule September 1, 2014 through November 30, 2014 Revenues $59,033.49 Cost of Goods Sold Beginning Inventory-September 1, 2014 $ - Purchases Food &Beverage/Paper&Chemicals 27,887.86 Ending Inventory-November 30, 2014 (17,772.98) Cost of Food &Beverage 10,114.88 17.1% Labor 9,787.92 16.6% Cost of Goods Sold 19,902.80 33.7% Gross Profit 39,130.69 66.3% Expenses/Expenditures Personnel 26,003.42 Other Materials&Services 2,641.30 Total Expenses/Expenditures 28,644.72 Income-Food & Beverages Activities $10,485.97 Page 18 JUSTICE COURT Statement of Financial Operating Data July 1, 2014 through November 30, 2014 FY 2014 (42% of Fiscal Year) FY 2015 %of Actual Actual Budget Budget Projection $Variance Revenues Court Fines&Fees 425,632 147,464 33% a) 450,000 443,838 (6,162) State Miscellaneous - - 0% 600 600 - Interest on Investments 653 236 29% 815 815 - Total Revenues 426,285 147,700 33% 451,415 445,253 (6,162) Expenditures Personnel Services 407,456 172,386 41% 416,045 416,045 - Materials and Services 183,148 75,569 45% b) 166,093 140,177 25,916 Total Expenditures 590,605 247,955 43% 582,138 556,222 25,916 Revenues less Expenditures (164,319) (100,254) (130,723) (110,969) 19,754 Transfers In-General Fund 140,819 31,000 42% 74,398 74,398 - Change in Fund Balance (23,500) (69,254) (56,325) (36,571) 19,754 Beginning Fund Balance 153,818 130,317 121% 107,621 130,317 22,696 Ending Fund Balance $ 130,317 $ 61,063 $ 51,296 $ 93,746 $ 42,450 a)$26,768 was received in Nov for Oct revenue; historically, largest portion of revenue collected in Spring months b)$25,000 in software maintenance paid out in July Page 19 V1 C as) U E § v a� C) O u ti z • • • • LI) Deschutes County f Campus Improvement(Fund 463) Inception through November 30, 2014 Received and Committed or _ Expended Projected Total RESOURCES: Transfer in(Note A) $ 796,617 $ - $ 796,617 Transfer in-General Fund 150,000 - 150,000 Transfer in-General County Projects(142) 700,000 - 700,000 Oregon Judicial Dept Payment 20,000 - 20,000 Interest Revenue 9,437 400 9,837 Total Resources 1,676,053 400 1,676,453 EXPENDITURES: Basement Jail/Boiler Demolition JB1 168,109 - 168,109 Basement Public File View JB2 141,862 - 141,862 1st Floor Public File View JB3 117,980 - 117,980 1st Floor Restrooms/Haslinger Court JB4 401,231 - 401,231 1st Floor DeHoog/Bagley Court/Jury Room JB5 81,702 - 81,702 Accounting Area Open Workspace JB6 40,257 - 40,257 Courthouse DA Offices JB7 34,348 - 34,348 Hearing Room Justice Bldg 2/Basement Phases 1/2 JB8 344,387 338,380 682,767 "Stone Building" 720 - 720 Internal Service Fund Charges 7,477 - 7,477 Total Materials &Services 1,338,073 338,380 1,676,453 Revenues less Expenditures $ 337,980 $ (337,980) - Notes: A. Remaining proceeds from the FF&C borrowing for the OSP/911 Building. Completed Projects JRF 12/2/2014 Deschutes County Jail Project(Fund 456)- Phase II ` Beginning July 1, 2012 Through November 30, 2014 Actual (Through Total (Actual + November Committed Projected Committed + 30, 2014) Projected) Resources Interest $ 42,139 $ - $ - $ 42,139 Private Grants(Energy Trust of OR) $ 23,034 23,034 Transfers In: - General County Projects (142) 240,000 - 240,000 General Capital Reserve(143) 1,250,000 - - 1,250,000 General Fund (001) 750,000 - - 750,000 Sheriff's Office(FY 2015)(Note 5) 136,000 48,854 184,854 Jamison Acq & Remodel (457)(Note 2) 540,939 - - 540,939 Bond Issuance, net 8,403,481 - - 8,403,481 Total Resources 11,385,593 - 48,854 11,434,447 Expenditures Architect(Note 2) 939,675 - - 939,675 Engineering 38,617 - - 38,617 Environmental 593 - - 593 Surveying 500 - - 500 Consulting 8,716 - - 8,716 Building&Grounds 12,328 - 4,000 16,328 Fees&Permits, SDCs (water&sewer) 338,201 - 338,201 Insurance 7,938 - - 7,938 Internal Service Fund Charges 41,744 - - 41,744 Miscellaneous Administrative 9,972 - - 9,972 FF & E -Security System 93,038 - - 93,038 FF& E-Storage System &Other(4) 56,616 - - 56,616 Construction -Expansion&Remodel(3) 9,882,511 - 9,882,511 Construction Contingency - - - - Total Expenditures 11,430,447 - 4,000 11,434,447 Net $ (44,854) $ - 44,854 - JRF 12/2/2014 - Deschutes County North County-Design Center(Hwy 97), Antler and Unger Inception through November 30, 2014 ACTUAL Received/ Encumbrances Project to Expended &Commitments Date RESOURCES: Loan Proceeds, net of issuance costs 150,000 - 150,000 c) Rentals 500 - 500 Resources from Fund 142 (FY 2011) 1,402,013 - 1,402,013 a) Resources from Fund 142(FY 2011) 25,000 - 25,000 b) Resources from Fund 142 (FY 2012) 600,000 - 600,000 Sale of Design Center or Fund 140 727,534 727,534 To Be Determined - 154,500 154,500 c) Interest Revenue 9,377 - 9,377 Total Resources 2,186,890 882,034 3,068,924 EXPENDITURES: Materials& Services Design Center-Hwy 97 Architect 47,092 - 47,092 b) Utilities 24,857 2,370 27,227 d) Other 3,814 - 3,814 Total Design Center-Hwy 97 75,762 2,370 78,132 Unger Building Architect 24,133 8,750 32,883 Engineering 12,037 12,634 24,670 Environmental 1,605 - 1,605 Fees& Permits - 20,000 20,000 Furniture,Fixtures &Equipment - 50,000 50,000 Relocation Costs 4,600 10,400 15,000 e) Remodel Construction - 600,000 600,000 Total Unger Building 42,374 701,784 744,158 Antler Building 46,987 - 46,987 Evergreen School site(Architect Fees) 3,803 - 3,803 Internal Service Fund Charges 33,102 - 33,102 Total Materials &Services 202,029 704,154 906,182 Debt Service 5,179 154,500 159,679 c) Capital Outlay Land/Building-Design Center Hwy 97 1,402,013 - 1,402,013 a) Land/Building-Antler 601,050 - 601,050 c) Total Capital Outlay 2,003,063 - 2,003,063 Total Expenditures 2,210,271 858,654 3,068,924 Net (23,381) 23,381 - a) The"Design Center"on Hwy 97 was purchased in FY 2011 with resources from General County Projects(Fund 142)-$1,402,013. b) $25,000 was paid to the architect in FY 2011 with resources from General County Projects Fund (Fund 142) c) Antler Building acquired for Cash and Note. The Resources to pay off note to be provided from (1)sale of building on Hwy 97 or(2)from Fund 140/142 d) Commitment is six months of Water&Sewer and Electricity. e) The costs incurred through June 30, 2015 for alternate facilities for Justice Court and Parole&Probation will paid from Fund 462 through June 30, 2015 JRF 12/2/2014 • Deschutes County Sisters Health Clinic(Fund 464) Inception through November 30, 2014 ACTUAL Received/Accrued Encumbrances Project to and Expended &Commitments Date RESOURCES: Beginning Net Working Capital Federal Grants 500,000 - 500,000 a) Donations(St, Charles&OR Comm Dental) 23,261 23,261 Resources from Fund 142 50,381 - 50,381 b) Transfer in (Fund 142) 255,000 - 255,000 c) Transfer in(Fund 270) 75,000 (591) 74,409 d) Interest Revenue 1,049 - 1,049 Total Resources 904,692 (591) 904,100 EXPENDITURES: Materials& Services Architecture/Design 67,971 67,971 b) Engineering - - Planning 3,325 3,325 Surveying 2,029 2,029 Interfund Charges 3,677 3,677 Fees, Permits, Insurance&SDCs 68,621 - 68,621 Miscellaneous Project Costs 19,178 19,178 Miscellaneous Admin Costs 45 - 45 Total Materials &Services 164,845 - 164,845 Capital Outlay New Construction-CS Construction 739,256 - 739,256 e) Total Capital Outlay 739,256 - 739,256 Total Expenditures 904,100 - 904,100 Net $ 591 $ (591) - a) Federal Grant. Balance received September 10, 2014 b) $50,381 paid in FY 2012 with resources from General County Projects Fund (Fund 142) c) FY 2013-$100,000; FY 2014-$155,000(Resolution No. 2014-023 Feb 26, 2014) d) FY 2014-$50,000(Resolution No. 2014-024 Feb 26, 2014). Resources required to close the project will be proviced by Fund 270. A transfer of up to$25,000 has been approved. e) Original contract-$552,730, Change Order#1-8= 180,249.09 JRF 12/2/2014 �Jres APINict Z Deschutes County Administrative Policy No. F-14 Effective Date: December 15,2014 General Financial Policies STATEMENT OF POLICY Deschutes County has an important responsibility to its citizens to carefully account for public funds,manage municipal finances wisely,manage growth,and plan adequate funding of services desired by the public, including the provision and maintenance of public facilities. Deschutes County insures that it is capable of adequately funding and providing County services needed by the community on a sustainable basis. • The following Financial Policies are designed to establish guidelines for the fiscal stability of the County. The scope of these policies generally spans,among other issues,accounting,auditing,financial reporting,internal controls,operating and capital budgeting,revenue management,expenditure control,asset management,cash and investment management,and planning concepts, in order to: • Demonstrate to the citizens of Deschutes County,the investment community, and the bond rating agencies that the County is committed to strong fiscal operations and to the preservation of its ability to provide the financial stability to navigate through economic downturns and respond to the changing needs of the community; • Provide an adequate financial base to sustain a sufficient level of County services to the community delivered in a cost effective and efficient manner; • Present fairly and with full disclosure the financial position and results of financial operations of the County in conformity to Generally Accepted Accounting Principles(GAAP);and • Determine and demonstrate compliance with finance-related legal and contractual issues in accordance with provisions of the Oregon Revised Statutes and other pertinent legal documents and mandates. APPLICABILITY This policy applies to all financial operations of Deschutes County and all other entities governed by the Deschutes County Board of County Commissioners. POLICY AND PROCEDURES I. Financial Planning Policies a) Budget Process The County budget process will conform to existing state and local regulations including local budget law. The process will be coordinated so that major policy issues and Board goals and objectives are identified and incorporated into the budget. b) Balanced Budget Deschutes County's accounting and budgeting systems are organized and operated on a fund basis. The budget for each fund is balanced, meaning total resources, consisting of beginning net working capital, current year revenues and transfers-in, are equal to total requirements and transfers out, contingencies, unappropriated ending fund balances,and reserves for future expenditures. c) Budget Adiustments All requests for budget changes after adoption will be submitted to the Finance Director for analysis. The Finance Director will determine the need for the adjustment and the process to be followed to seek approval for the requested change. All resolutions proposing adjustments to the adopted budget will be prepared by the Policy #F-14 Administrative Policy Finance Department and will be placed on the Board's agenda by Finance for Board approval to ensure compliance with budget laws. d) GFOA Awards Program The County participates in the GFOA Award for Distinguished Budget Presentation program and will continue to submit its annual budget to the program. e) Financial Reporting Policy The County's accounting systems and financial reports will be in conformance with all state and federal laws, generally accepted accounting principles (GAAP) and standards of the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). An annual audit will be performed by an independent public accounting firm, licensed as a municipal auditor,with an audit opinion to be included with the County's published Comprehensive Annual Financial Report (CAFR). The County's CAFR will be submitted to the GFOA Certification of Achievement for Excellence in Financial Reporting Program. The financial report should be in conformity with GAAP, demonstrate compliance with finance related legal and contractual provisions, thoroughly disclose sufficient detail and minimize ambiguities and potentials for misleading inference.The County's CAFR will also be provided to the Municipal Securities Rulemaking Board via electronic submission to the Electronic Municipal Rulemaking Board (EMMA), a continuing disclosure requirement, to enable investors to make informed decisions. Financial systems will maintain internal controls to monitor revenues,expenditures,and program performance on an ongoing basis. f) Budgeting for Operating Working Capital and Contingencies g) Operating Funds In order to maintain a prudent level of financial resources to protect against the need to reduce service levels or raise taxes(i.e. Voter-approved local option levy)and fees due to temporary revenue shortfalls or unforeseeable one-time expenditures,the County will establish and maintain certain working capital balances. The County will strive to maintain a working capital level in each operating fund,other than the General Fund,of 8.3% (1/12`")of that fund's operating budget. The County will establish operations working capital within the General Fund of approximately four months of estimated annual property tax collections. Other funds that rely on heavily on property taxes, which are not received until the month of November each year, should have an operating working capital level at or near the level of the General Fund,and include the Sheriffs Funds,9-1-1, Extension/4-H,and the Sunriver and Black Butte Ranch county service districts.The Finance Director shall have the authority to allow exceptions to this policy for those funds with significant reserves and those that can demonstrate sufficient cash flow to avoid inter-fund borrowing prior to the receipt of tax revenues. h) Reserve and Insurance Funds The following funds,due to their specific purposes,require reserve working capital balances above 8.3%: PERS Reserve Fund Insurance(general liability, worker's compensation, unemployment,and property damage) Health Benefits(medical,pharmacy, dental and vision) Various Community Development Reserve Funds, when applicable GIS Dedicated Fund Road Building and Equipment Reserve Fund Vehicle Maintenance and Replacement Fund Public Health Department Reserve Fund Sheriffs Capital Reserve Funds General Capital Reserve Fund Project Development Fund County Clerk Records Fund Solid Waste Reserve Funds Fair/Expo Center Capital Reserve Funds County Service Districts Reserve Funds Working capital balances for these funds will be determined each year by the Finance Director and the Policy#F-14 Administrative Policy Department Head given the unique needs of each fund and the anticipated use of such funds in future years. i) Lone Ranee Planning Each year,the County will update resource and requirement forecasts for major operating funds for the next five years and annually develop a five-year Capital Improvement Program(CIP)for major projects related to the acquisition,expansion or rehabilitation of the County's buildings,equipment,parks, streets and other public infrastructure.These estimates will be presented to the Budget Committee in a format which is intended to facilitate budget decisions and strategic planning,based on a multi-year perspective. j) Capital Assets Deschutes County will perform an inventory of its capital assets and controlled capital-type items on an ongoing annual basis. This information will be used to plan for the ongoing financial commitments required to maximize the public's benefit including security of assets, insurance levels,capitalization of capital costs for reporting purposes and asset replacement and obsolescence. 2. Revenue Policies a) Revenue Diversification Revenues estimates will be established each year in a realistic and prudent manner using objective and analytical approaches. Revenue forecasts will assess the full spectrum of resources that can be allocated for public services. To the greater extent possible,the County's revenue system will be diversified as protection from short-fun fluctuations in any one revenue source. b) Fees and Charges User fess and charges will be established for services that benefit specific individuals or organizations.The County will annually review all fees, licenses,permits, fines and other miscellaneous charges in conjunction with the budget process. User charges and fees will be established based at a level related to the full cost of indirect costs, including operations and maintenance,overhead,and charges for the use of capital facilities. Other factors for fee or charge adjustments may also include the impact of inflation,other cost increases and current competitive rates. c) Use of One-Time Revenues One-time revenues or resources shall not be used to fund ongoing operations,unless in the context of a multi- year financial plan to balance expenditures and reserves.One-time revenues should not support ongoing personnel and operating costs. Use of one-time revenues is appropriate for non-recurring capital outlay,debt retirement,contribution to capital reserves,and other non-recurring expenses. d) Use of unpredictable Revenues Revenues of a limited or undefined term will generally be used for capital projects or one-time operating expenditures to ensure that no ongoing service programs are lost when such revenues are reduced or discontinued. e) Grants Grants are generally contributions from one government to another, usually for a specific purpose. Grants can be recorded in any type of fund and should be recorded in an existing fund whenever possible.Grants sometimes come with matching fund requirements. It is important that matching requirements be well understood before grants are accepted by the County to ensure that services being provided through grant funding are sustainable. It is also essential any staff hired to carry out grant funded services are hired subject to the amount and continuation of the grant funding. f) Revenue Management The County will not respond to long term revenue shortfalls with deficit funding or borrowing to support ongoing operations.Once working capital balances have reached policy levels,expenses will be reduced to conform to long term revenue forecasts and/or revenue increases will be considered. Policy#F-14 Administrative Policy 3. Expenditure Policies a) Debt Capacity,Issuance and Management • The Finance Director is responsible to structure all debt issuances and oversees the on-going management of all County debt including general obligations, lease purchase agreements,revenue bonds, full faith and credit bonds,promissory notes,equipment financing agreements and any other contractual arrangements that obligate the County to make future principal and interest payments. • No debt will be issued for which the County is not confident that a sufficient specifically identified revenue source is available for repayment. The Finance Director shall prepare an analysis of the source of repayment prior to issuance of any debt. • When issuing long term debt,the County will ensure that debt is only incurred when necessary for capital improvements too large to be financed from current resources,the useful life of a financed improvement will exceed the life of the related debt,the benefits of financing exceed the cost of borrowing, and ensure that operating costs related to capital improvements are adequately considered before debt is issued. • The County will manage an administer its long-term debt in compliance with the restrictions and limitations of State law with regard to bonded indebtedness for counties as outlined in the Oregon Revised Statutes. These statutory restrictions establish legal limitations on the level of limited tax and general obligation bonded debt which can be issued by the County(1%and 2%of the real market value of all taxable property,respectively). The statutes outline the processes for public hearings,public notice and bond elections,as well as provision for the issuance and sale of bonds and restrictions on the use of those bond proceeds. • The County will not use long-term debt to fund current operations,to balance the budget,or to fund projects that can be funded from current resources. The County may use short-term debt or inter-fund loans as permitted by law to cover temporary cash flow needs resulting from a delay in grant proceeds or other revenues and delay in the issuance of long term debt.All bond issuances and promissory notes will be authorized by resolution of the Board of County Commissioners. • The County will, through prudent financial management and budgeting practices,strive to maintain or enhance its Moody's credit ratings which are currently Aa3 for full faith and credit debt and Aa2 for general obligation debt. • The County will ensure that adequate procedures are in place to meet the post issuance obligations of borrowers to report periodic financial information and to disclose certain events of interest to bond holders in a timely manner. b) Operating/Capital Expenditure Accountability The County will maintain an accounting system which provides internal budgetary controls. The County's budget documents shall be presented in a format that provides for logical comparison with prior fiscal periods whenever possible. Reports comparing actual revenues and expenditures to budget for the County's major operating funds shall be prepared monthly which will be distributed to the Board of County Commissioners, County Administrator, Department Heads/Directors and any interested parties. The County will strive to fund minor capital improvements on a pay-as-you-go basis to enhance its financial condition and bond rating. The County shall annually contribute to certain capital reserve funds to the extent possible given cash flow limitations and projected capital improvements. c) Internal Service Funds Internal service funds are used to account for services provided by one department to other departments on a cost-reimbursement basis. The goal of an internal service fund is to measure the full cost of providing services for the purpose of fully recovering that cost through fees or charges to user departments. Deschutes County Policy# F-l4 Administrative Policy internal service funds are as follows: Building Services,Administrative Services,Board of County Commissioners,Finance, Legal Counsel, Personnel,Information Technology, Information Technology Reserve, Insurance Reserve and Health Benefits Trust. 4. Cash Management Policies a) Investments County funds will be invested in a prudent and diligent manner with emphasis on safety, liquidity and yield, in that order.The County will conform to all state and local statutes governing the investment of public funds and to the County's investment policy. The County's investment policy shall be approved by the State of Oregon Short-Term Fund Board and adopted by the Board of County Commissioners at least annually.Additionally,the County will have an Investment Advisory Committee to review the County's investment policy, its investments, and its investment strategy and philosophy. The Investment Advisory Committee will consist of financial experts who are citizens of Deschutes County, and will meet twice each year. b) Banking Services The County will seek competitive bids for its banking services. Requests for proposals will be comprehensive; covering all aspects of the County's banking requirements.The award to the successful bidder will be for a five- year period with two one year extensions. c) Annual Validation of County Bank Accounts Each year a letter is to be mailed to all banking institutions operating within Deschutes County to validate that the only Deschutes County accounts, listing Deschutes County or a Deschutes County department as the owner of the account and utilizing the County's federal identification number,are those accounts that have been approved by the Board of Commissioners and request that each bank notify the County of any accounts in operation within their financial institutions that are not on the approved list. The Finance Director/Treasurer is authorized to establish all bank accounts,determine and authorize signatories to those bank accounts,and to manage all banking and investment related services for the County. d) Credit Cards The Finance Director/Treasurer, in consultation with the County Administrator, is authorized to set up credit cards for County staff as requested. e) Internal Controls and Performance Auditing Policies Employees in the public sector are responsible to the taxpayers for how public resources are used and must perform their duties in compliance with law, policy, and established procedures. The following County activities are essential and are consistent with providing citizens with an objective and independent appraisal of County government. • Maintain an independent internal audit program to evaluate and report on the financial condition, the accuracy of financial record keeping, compliance with applicable laws, policies, guidelines and procedures,and efficiency and effectiveness of operations. • Maintain a County Audit Committee comprised mostly of public citizens to oversee audit services, both external and internal. • In coordination with the Audit Committee, the County Internal Auditor and the County's external auditors shall periodically review internal controls in County departments and report findings to the Audit Committee regarding these reviews. • At the direction of the Audit Committee, the County Internal Auditor shall conduct performance audits to ensure departments and agencies funded by the County are operating in an efficient and cost- effective manner. Policy#F-14 Administrative Policy 5. Purchasing All purchases of goods and services must comply with the County's purchasing policies, purchasing rules and procedures in accordance with state laws and regulations. Before the County purchases any major asset or undertakes any operating any operating or capital arrangements that create fixed costs or ongoing operational expenses,the implications of such purchases will be fully determined for the current and future years. Approved by the Deschutes County Board of Commissioners Tom Anderson County Administrator Policy# F-14 Administrative Policy