HomeMy WebLinkAboutFY 2015 Deschutes County Extension and 4-H CSD Financial Statements
As of and For the Year Ended June 30, 2015
Deschutes County Extension
and 4-H County Service District
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Deschutes County Extension and 4-H County Service District
Table of Contents
June 30, 2015
IndependentAuditor's Report.................................................................................................................................... 1
Management's Discussion and Analysis....................................................................................................................4
Financial Statements
Statementof Net Position......................................................................................................................................9
Statementof Activities......................................................................................................................................... 10
BalanceSheet—General Fund............................................................................................................................. 11
Statement of Revenues, Expenditures and Changes in Fund Balances—General Fund...................................... 12
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of General
Fund to the Statement of Activities...................................................................................................................... 13
Notesto Financial Statements.............................................................................................................................. 14
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance-Budget and Actual—General Fund........ 19
Schedule of Revenues, Expenditures and Changes in fund Balance- Budget and Actual—Construction
Sub-Fund..............................................................................................................................................................20
Other Supplementary Information
Combining Balance Sheet—General Fund and Construction Sub-Fund.............................................................21
Combining Statement of Revenues, Expenditures and Changes in Fund Balance- General Fund and
ConstructionSub-Fund........................................................................................................................................22
Schedule of Property Tax Transactions...............................................................................................................23
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards.................................................................................................................................................................24
Audit Comments and Disclosures Required by State Regulations..........................................................................26
Independent Auditor's Report Required by Oregon State Regulations...................................................................27
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Independent Auditor's Report
The Deschutes County Commissioners
Deschutes County Extension and 4-H County Service District
Bend, Oregon
Report on the Financial Statements
We have audited the accompanying�nancial statements of the governmental activities and general fund
of Deschutes County Extension and 4-H County Service District(the District), a component unit of the
Deschutes County, as of and for the year ended June 30, 2015, and the related notes to the financial
statements, which collectively comprise the District's basic financial statements as listed in the table of
contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of�nancial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards,issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances,but not far the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly,we express no such opinion. An audit also includes evaluaring the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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Opinions
In our opinion,the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and the general fund of the District, as of June
30, 2015, and the respective changes in financial position for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and schedule of revenues, expenditures, and changes in fund balances—budget
and actual—general fund(budgetary schedule), as listed in the table of contents,be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to management's
discussion and analysis and the budgetary schedule in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management's
responses to our inquiries,the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on
management's discussion and analysis or the budgetary schedule because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The budgetary schedule described above is the
responsibility of management and was derived from and relate directly to the underlying accounting and
other records used to prepare the basic financial statements. The budgetary schedule has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the budgetary schedule is fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's financial statements. The schedule of revenues, expenditures, and changes in fund
balance—budget and actual—reserve, combining balance sheet and combining statement of revenues,
expenditures and changes in fund balances for the General Fund and reserve sub-fund(combining
statements) and the schedule of property tax transactions are presented for purposes of additional analysis
and are not a required part of the financial statements. The schedule of revenues, expenditures, and
changes in fund balance—budget and actual—reserve, combining statements and schedule of property tax
transactions are the responsibility of management and were derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, schedule of revenues, expenditures,
and changes in fund balance—budget and actual—reserve, combining statements and schedule of
property tax transactions are fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
2
Other Reporting Required by Government Auditing Standartls
In accordance with Governvnent Auditing Standards,we have also issued our report dated November 02,
2015 on our consideration of the District's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws,regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit perfonned in
accordance with Government Auditing Standards in considering the District's internal control over
financial reporting and compliance.
Report on Other Legal and Regulatory Requirements
In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have issued
our report dated November 02, 2015 on our consideration of the District's compliance with certain
provisions of laws and regulations,including the provisions of Oregon Revised Statutes as specified in
Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of
compliance and the results of that testing and not to provide an opinion on compliance.
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Boise,Idaho
November 02, 2015
3
Deschutes County Extension and 4-H County Service District
Management's Discussion and Analysis
June 30, 2015
As management of Deschutes County Extension and 4-H County Service District(the District), we offer readers
of the District's financial statements this narrative overview and analysis of the financial activities of the District
for the fiscal year ended June 30, 2015.
Financial Highlights
• The assets of Deschutes County Extension and 4-H County Service District exceeded its liabilities at June
30, 2015, by$925,293. Of this amount, $502,919 is unrestricted.
• Total net position increased by $62,647.
• As of June 30, 2015, Deschutes County Extension and 4-H County Service District's governmental fund
reported an ending fund balance of$457,246 or 87% of total General Fund Fiscal Year 2015 revenues.
• As of June 30, 2015,the unassigned fund balance in the General Fund was $48,380 or 9% of its fiscal
year 2015 revenues.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the District's basic financial statements.
These basic financial statements coinprise three components: 1) government-wide financial statements; 2) fund
financial statements and 3)notes to the financial statements. This report also contains other supplementary
information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of Deschutes
County Extension and 4-H County Service District's finances in a manner similar to a private-sector business.
The State�nent of Net Position presents information on all of Deschutes County Extension and 4-H County
Service District's assets and liabilities, with the difference between the two reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position of
Deschutes County Extension and 4-H County Service District is improving or deteriorating.
The Statement ofActivities presents information showing how Deschutes County Extension and 4-H County
Service District's net position changed during the fiscal year ended June 30, 2015. Changes in net position are
reported when the underlying event giving rise to the change occurs,regardless of the timing of the related cash,
or other financial assets, flows. Thus,revenues and expenses are reported in this statement for some items, for
example,property taxes and accrued vacation that will result in cash flows in future fiscal periods.
Each of these government-wide financial statements,Statement ofNet Position and Statement ofActivities, show
the functions of the District that are supported primarily by taxes and inter-governmental revenues (governmental
activities). The governmental activity of Deschutes County Extension and 4-H County Service District is
providing agricultural education extension services to the citizens of Deschutes County.
The government-wide financial statements can be found on pages 9-10 of this report.
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Deschutes County Extension and 4-H County Service District
Management's Discussion and Analysis
June 30, 2015
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. The District, like other state and local government entities, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund utilized by
Deschutes County Extension and 4-H County Service District is classified as a governmental fund.
Govermnental funds Governmental funds are used to account for the same functions as governmental activities in
the government-wide financial statements. However,unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well
as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with siinilar information presented for
governmental activities in the government-wide financial statements. By doing so,readers may better understand
the long-term impact of the government's near-term financing decisions. A reconciliation from the Governmental
Funds Balance Sheet to the Government-wide Statement of Net Position and a reconciliation from the
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-
wide Statement of Activities have been included in this report.
The District reported activity in one governmental fund during the fiscal year ended June 30,2015. Information
presented separately in the Governmental Fund Balance Sheet and in the Governmental Fund Schedule of
Revenues, Expenditures and Changes in Fund Balance.
The District adopts an annual budget for its funds. A budgetary comparison statement has been provided for this
fund to demonstrate compliance with the annual budget.
The General Fund Financial Statements can be found on pages 11-13 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found on pages 14-
18 of this report.
Government-wide Financial Analysis
Net position, at a specific point in time, serves as a useful indicator of an entity's financial position. In the case of
Deschutes County Extension and 4-H County Service District, assets exceed liabilities by $925,293 at June 30,
2015.
Approximately 46%of the District's net position represents its net investment in capital assets (building and
equipment). Deschutes County Extension and 4-H County Service District uses these capital assets to provide
services to citizens and this net position is not available for future spending.
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Deschutes County Extension and 4-H County Service District
Management's Discussion and Analysis
June 30, 2015
The remaining 54%, $502,919, of Deschutes County Extension and 4-H County Service District's net assets may
be used to meet the District's on-going obligations to citizens and creditors.
As of June 30, 2015, Deschutes County Extension and 4-H County Service District reports positive balances in
both categories of net position (net investment in capital assets and unrestricted) for the government as a whole
and for the governmental activities. Deschutes County Extension and 4-H County Service District's net position
increased by $62,647 during the year ended June 30, 2015.
A comparison of the summarized government-wide statements to the prior year is as follows:
Statements of Net Position
June 30, 20]5 June 30, 2014 Change
Assets
Current assets $ 637,018 $ 594,984 $ 42,034
Capital assets 422,374 439,421 (17,047)
Total assets 1,059,392 1,034,405 24,987
Liabilities
Current liabilities 134,099 135,156 (1,057)
Noncurrent liabilities - 36,603 (36,603)
Totalliabilities 134,099 171,759 (37,660)
Net position
Net investment in capital assets 422,374 439,421 (17,047)
Unrestricted 502,919 423,225 79,694
Total net position $ 925,293 $ 862,646 $ 62,647
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Deschutes County Extension and 4-H County Service District
Management's Discussion and Analysis
June 30, 2015
Statements of Activities
Year Ended Year Ended
June 30, 2015 June 30, 2014 Change
Program Revenues
Charges for services $ 91,660 $ 90,634 $ 1,026
Operating grants - 5,356 (5,356)
General Revenues
Property taxes 426,119 403,646 22,473
Interest and rents 5,043 3,596 1,447
Total revenues 522,822 503,232 19,590
Expenses
General expenses 460,175 507,558 (47,383)
Total expenses 460,175 507,558 (47,383)
Change in Net Position 62,647 (4,326) 66,973
Net Position, Beginning of Year 862,646 866,972 (4,326)
Net Position, End of Year $ 925,293 $ 862,646 $ 62,647
Governmental Activities
Governmental activities decreased the District's net position by$62,647 during the fiscal year ended June 30,
2015.
Financial Analysis of the District's Funds
Deschutes County Extension and 4-H County Service District uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements.
Governmental funds The focus of the District's governmental funds is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing the District's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's
net resources available for spending as of the end of the fiscal year.
As of June 30, 2015, $457,246 is the reported ending fund balance for the District's governmental fund, an
increase of$33,145 from June 30, 2014.
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Deschutes County Extension and 4-H County Service District
Management's Discussion and Analysis
June 30, 2015
As of June 30, 2015 the fund balance for the District's General Fund is $457,246, of this amount $48,380 is
unassigned, a decrease of$19,742. One measure of liquidity is the relationship of the unassigned fund balance to
the fund's total revenues. The unassigned fund balance as of June 30, 2015, for the General Fund is 9% of its
Fiscal Year 2015 revenues.
The District established a Construction Fund in fiscal year 2010 with a transfer from the General Fund. The
Construction Sub-Fund received a$50,000 transfer from the General Fund and earned$2,887 of interest in the
current year and ended with a balance of$408,866, an increase of$52,88'7. The resources accumulated in this
fund will be used for the future expansion and remodel of the District's office building.
General Fund Budgetary Highlights
There were no changes made to the originally adopted budget for the District in fiscal year 2015. Actual revenues
exceeded estimated revenues by$14,600, due mainly to the receipt of$10,967 more in property tax revenue than
was estimated in the budget.
Capital Asset and Debt Administration
Capital Assets
The District's investment in capital assets for its governmental activities as of June 30, 2015, is $422,374,net of
accumulated depreciation. This investment in capital assets includes building and equipment.
Additional information on Deschutes County Extension and 4-H County Service District's capital assets is
included in Note 3.
Long-term Debt
The District has no long-term debt; therefore,the District has not been separately rated by any of the bond rating
agencies.
Key Economic Factors and Budgets Information for the Future
• The District's Assessed Valuation of Taxable Property increased from Fiscal Year 2015 to Fiscal Year
2016 by 6.3°/o,to approximately $20.7 billion.
• Effective June 29, 2015 the District's employees became employees of Oregon State University. The
District will reimburse the University for costs incurred on behalf of the District beginning in FY 2016.
Requests for Information
This financial report is designed to provide a general overview to those parties interested in Deschutes County
Extension and 4-H County Service District's finances. Questions concerning any of the information provided in
this report or requests for additional information should be addressed to Deschutes County Finance Department,
1300 NW Wall Street, Suite 200, Bend, Oregon, 97703.
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Deschutes County Extension and 4-H County Service District
Statement of Net Position
June 30, 2015
Primary
Government -
Governmental
Activities
Assets
Cash and investments $ 587,474
Accounts receivable 2,642
Property taxes receivable 12,057
Prepaid expenses 34,845
Equipment and building 568,266
Accumulated depreciation (145,892)
Total assets 1,059,392
Liabilities
Accounts payable 29,407
Unearned revenues 104,692
Total liabilities 134,099
Net Position
Net investment in capital assets 422,374
Unrestricted 502,919
Total net position $ 925,293
See Notes to Financial Statements 9
Deschutes County Extension and 4-H County Service District
Statement of Activities
Year Ended June 30, 2015
Primary
Government -
Governmental
Activities
Expenses
General services $ 460,175
Program Revenues
Charges for services 91,660
Net program expenses 368,515
General Revenues
Property taxes 426,1 I 9
Interest on investments 5,043
Total general revenues 431,162
Change in Net Position 62,647
Net Position, Beginning of Year 862,646
Net Position, End of Year $ 925,293
See Notes to Financial Statements 10
Deschutes County Extension and 4-H County Service District
Balance Sheet—General Fund
June 30, 2015
Assets
Cash and investments $ 587,474
Accounts receivable 2,642
Property taxes receivable 12,057
Total assets $ 602,173
Liabilities
Accounts payable $ 29,407
Unearned revenues 104,692
Total liabilities 134,099
Deferred Inflows of Resources
Unavailable revenue -property taxes 10,828
Total deferred inflows of resources 10,828
Fund Balance
Assigned for future expenditures 408,866
Unassigned 48,380
Total fund balance 457,246
Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 602,173
Fund Balance $ 457,246
Amounts reported for governmental activities in the Statement of Net Position are different because:
Prepaid expenses are not financial resources and,therefore, are not reported in the
fund. 34,845
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported on the Balance Sheet. 422,374
Some of the District's taxes will be collected after year-end,but are not currently
available resources and,therefore, are deferred in the General Fund. 10,828
Net position of govern�nental activities $ 925,293
See Notes to Financial Statements 11
Deschutes County Extension and 4-H County Service District
Statement of Revenues, Expenditures and Changes in Fund Balances—General Fund
Year Ended June 30, 2015
Revenues
Property taxes $ 428 232
,
Interest 5,043
Charges for services 87,975
Rent 3,685
Total revenues 524,935
Expenditures
Personnel services 167,233
Materials and services 324,557
Total expenditures 491,790
Net Change in Fund Balance 33,145
Fund Balance, Beginning of Year 424,101
Fund Balance, End of Year $ 457,246
See Notes to Financial Statements 12
Deschutes County Extension and 4-H County Service District
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of General Fund to the
Statement of Activities
Year Ended June 30,2015
Net change in fund balance - General Fund $ 33,145
Amounts reported for governmental activities in the Statement of Activities are different because:
Some expenses reported in the Statement of Activities (e.g. the change in prepaid
expenses, accrued compensated absences and OPEB obligation) do not require the use
of current financial resources and,therefore, are not reported as expenditures in the
governmental funds. 48,662
Governmental funds report capital outlay as expenditures. However, in the Statement of
Activities, the cost of those assets are allocated over their estimated useful lives and
reported as depreciation expense.
Depreciation (17,047)
Property tax revenue is recognized under the modified accrual basis of accounting only
to the extent it has been collected within sixty days of year-end. On the accrual basis
Statement of Activities, such revenue is recognized regardless of when collected. (2,113)
Change in net position of governmental activities $ 62,647
See Notes to Financial Statements 13
Deschutes County Extension and 4-H County Service District
Notes to Financial Statements
June 30, 2015
Note 1 - Principal Business Activity and Significant Accounting Policies
The District
The Deschutes County Extension and 4-H County Service District(the District)was established under ORS
451.410 to 451.600 on February 2, 1982, for the purpose of providing agricultural education extension services to
the citizens of Deschutes County(the County). The Deschutes County Board of Commissioners is the governing
body of the District.
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)
report information on a11 of the activities of the government. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which
rely to a significant extent on fees and charges for support. The District has no business-type activities or
fiduciary funds.
The statement of activities demonstrates the degree to which the direct expenses of a given function ar segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or section. Taxes and
other items not properly included among program revenues are reported instead as general revenues.
Measurement Focus,Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items
are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. It is the
District's policy to first apply restricted resources when an expense is incurred for purposes for which both
restricted and unrestricted net assets are available.
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose,the District considers revenues to be
available if they are collected within sixty days of the end of the current fiscal period. Revenues received after this
period, are considered unavailable. Expenditures generally are recorded when a liability is incurred, as under
accrual accounting. However, expenditures related to compensated absences and other post-employment benefits
are recorded only when payment is due.
Property taxes and intergovernmental revenue associated with the current fiscal period are considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue
items are considered to be measurable and available only when cash is received by the District.
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Deschutes County Extension and 4-H County Service District
Notes to Financial Statements
June 30, 2015
The District reports the following governmental fund:
General Fund- The General Fund is utilized to account for the transactions of the District. Property
taxes are the principal source of revenue. Expenditures are for the operation and administration of the
District.
Construction Sub-Fund- The Construction Sub-Fund is utilized to accumulate resources for the District's
future facilities. Transfers from the General Fund are its principal source of resources.
Budget Policy
The District prepares a budget for all funds which meet the requirements of state law. The budget is prepared on
the modified accrual basis of accounting. The resolution authorizing appropriations for each fund sets the level for
which it is unlawful to over expend. Total personnel services, materials and services, capital outlay and other
expenditures are the]evels of control established by resolution. The detailed budget document provides for
specific detailed information for the above-mentioned expenditure categories. Unexpected additional resources
may be added to the budget through the use of a supplemental budget and appropriations resolution. Original and
supplemental budgets may be modified by the use of appropriation transfers between the levels of control.
Appropriations lapse as of year-end.
Reporting Entity
The District's financial statements include the accounts of all District operations. The criteria for including
organizations as component units within the District's reporting entity, as set forth in GASB 61, The Financial
Reporting Entity: Omnibus,include whether:
• The organization is legally separate (can sue and be sued in its own name).
• The District holds the corporate powers of the arganization.
• The District appoints a voting majority of the organization's board.
• The District is able to impose its will on the organization.
• The organization has the potential to impose a financial benefit/burden on the District.
• There is fiscal dependency by the organization on the District.
There were no specific agencies which required consideration under the criterion in the current fiscal year for
inclusion in the District's reporting entity.
Under the above criterion,the District is includable as a component unit in the financial statements of Deschutes
County, since the District's governing board is comprised of the Deschutes Counry Commissioners; The District
also has an eight-member advisory board that oversees operations.
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Deschutes County Extension and 4-H County Service District
Notes to Financial Statements
June 30, 2015
Cash and Investments
Cash and investments are comprised of funds held by the Deschutes County Treasurer, in the County's cash and
investment pooL The District's cash and investments participate in this pool rather than specific, identifiable
securities. The District's share of County pooled cash and investments can be drawn upon demand, and therefore,
the entire amount on deposit with the County is considered cash and cash equivalents. Interest earned on pooled
investments is allocated monthly based on the average daily balance of the District in relation to total investments
in the pool. It is not practical to determine the investment risk, collateral, or insurance coverage for the District's
share of these pooled investments. This pool generally includes demand deposits, investments in the Oregon State
Treasurer's Local Government Investment Pool(LGIP), obligations of the United States Treasury and United
States Government agencies and instrumentalities, certain high-grade cominercial paper and corporate bonds. This
policy is in accordance with ORS 294.035 which specifies the types of investments authorized for municipal
corporations.
State statutes authorize the County to invest in obligations of the U.S. Treasury, commercial paper, corparate
bonds, municipal bonds,banker's acceptances, repurchase agreements, and the State Treasurer's Local
Government Investment Pool(LGIP). Investments for the County, as well as for its component units, are reported
at fair value. The LGIP operates in accordance with appropriate state laws and regulations.
Information about the pooled cash and investments is included in the County's annual financial report and may be
obtained by contacting the Deschutes County Finance Department, 1300 NW Wall Street, Suite 200, Bend,
Oregon, 97703.
Accounts Receivable
The District considers all receivables as fully collectible; therefore, no allowance for uncollectible accounts has
been established.
Capital Assets
Capital assets,which include equipment and a building, are reported in the government-wide financial statements.
In the governmenta] fund statements, capital assets are charged to expenditures as purchased. Capita] assets are
recorded at historical cost. Donated assets are recorded at estimated fair market value as of the date of the
donation.
Capital assets are defined by the District as assets with an initial cost of$5,000 or more and an estimated actual
life of two years or more. Additions or improvements and other capital outlays that significantly extend the useful
life of an asset, or that significantly increase the capacity of an asset, are capitalized. Other costs incurred for
repairs and maintenance are expensed as incurred. Major outlays for capital assets and improvements are
capitalized as projects are constructed.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net Position and is calculated on the straight-line basis
over the following estimated useful lives:
Assets Years
Building and Improvements 10-50 years
Equipment l 0 years
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Deschutes County Extension and 4-H County Service District
Notes to Financial Statements
June 30, 2015
Property Taxes/Unavailable Revenue
Property taxes are assessed on a July 1 -June 30 fiscal year basis. The taxes are levied as of July 1 based on
assessed values as of January 1. Property tax payments are due in three equal installments, on November 15,
February 15 and May 15. A discount of 3% is available if taxes are paid in full by November 15 and a discount of
2% on the unpaid balance is available if taxes are paid in full by February 15. Property taxes attach as an
enforceable lien July 1 and are considered delinquent if not paid by the following May 15. The Deschutes County
Treasurer is the tax collection agent for the District. The District's 2015 fiscal year tax levy was $437,202.
Tax revenue is considered available for expenditure upon receipt by the County,which serves as the intermediary
collecting agency. Uncollected property taxes are shown on the General Fund balance sheet as receivables.
Collections within 60 days subsequent to year-end have been accrued and the remaining taxes receivable are
recorded as deferred inflow of resources on the modified accrual basis of accounting since they are not deemed
available to finance operations of the current period.
Fund Balance Reporting
The Governmental Accounting Standards Board(GASB) Statement No. 54,Fund Balance Reporting and
Governmental Fund Type Definitions(GASB 54), defines the different types of fund balances that a governmental
entity must use for financial reporting purposes.
GASB 54 requires the fund balance amounts to be properly reported within one of the fund balance categories
listed below:
1. Nonspendable, such as fund balance associated with inventories,prepaids, long-term loans and notes
receivable, and property held for resale(unless the proceeds are restricted, committed or assigned).
2�. Restricted fund balance category includes amounts that can be spent only for specific purposes stipulated
by constitution, external resource providers or through enabling legislation.
3. Committed fund balance classification includes amounts that can be used only for the specific purposes
determined by a formal action of the District's governing board(the Districts' highest level of decision-
making authority). Once adopted,the limitation imposed by the ordinance remains in place until a similar
action is taken(the adoption of another ordinance)to remove or revise the limitation.
4, Assigned fund balance classification is intended to be used by the government for specific purposes but
do not meet the criteria to be classified as restricted ar committed. Assignments are made by the County
Administrator based on the County Commissioner's direction.
5, Unassi�ned fund balance is the residual classification far the District's general fund and includes all
spendable amounts not contained in the other classifications.
The District reduces restricted amounts first when expenditures are incurred for purposes for which both restricted
and unrestricted(committed, assigned or unassigned) amounts are available. The District reduces committed
amounts first, followed by assigned amounts and then unassigned amounts when expenditures are incurred for the
purpose for which amounts in any of those unrestricted fund balance classifications could be used.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that effect certain reported amounts
and disclosures. Accordingly, actual results could differ from these estimates.
17
Deschutes County Extension and 4-H County Service District
Notes to Financial Statements
June 30, 2015
Note 2 - Cash and Investments
As of June 30, 2015,the District had a deposit of$545,273 with the Deschutes County Treasurer. All of the
District's deposits were adequately insured or collateralized by securities held by the pledging financial institution
in the financial institution's name during the year.
Note 3 - Capital Assets
Capital asset activity for the fiscal year ended June 30, 2015,is as follows:
Balance Balance
July 1, 2014 Additions Deletions June 30, 2015
Equipment $ 9,836 $ - $ - $ 9,836
Building 558,430 - - 558,430
Total 568,266 - - 568,266
Less accumulated depreciation
Equipment (8,360) (984) - (9,344)
Building (120,485) (16,063) - (136,548)
Total (128,845) (17,047) - (145,892)
$ 439,421 $ (17,047) $ - $ 422,374
Depreciation expense of$17,047 was charged to the general services expense.
Note 4 - Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; injuries to employees and others; and natural disasters for which the District participates in
Deschutes County's self-insurance program. There have been no settlements in excess of insurance coverage and
reserves in the past three fiscal years.
Note 5 - Lease Obligation
The District leases office equipment under a non-cancellable operating lease. The total expended for the lease for
the year ended June 30, 2015, was $10,640. The future minimum lease payments are as follows:
Fiscal year ending June 30
2016 $ 5,180
18
Required Supplementary Information
June 30, 2015
Deschutes County Extension
and 4-H County Service District
www. debaill� .com
Deschutes County Extension and 4-H County Service District
Schedule of Revenues, Expenditures and Changes in Fund Balance- Budget and Actual-General Fund
Year Ended June 30, 2015
Budgeted Amounts Variance with
Original Final Actual Final Budget
Revenues
Property taxes $ 417,265 $ 417,265 $ 428,232 $ 10,967
Interest 1,250 1,250 2,156 906
Charges for services 86,200 86,200 87,975 1,775
Rents 4,020 4,020 3,685 (335)
Total revenues 508,735 508,735 522,048 13,313
Expenditures
Personnel services 162,914 181,364 167,233 14,131
Materials and services 399,40] 399,401 324,557 74,844
Capital outlay 200 200 - 200
Total 562,515 580,965 491,790 89,175
Operaring contingency 62,320 43,870 - 43,870
Total expenditures 624,835 624,835 491,790 133,045
Excess(Deficiency)of Revenues
over expenditures (116,100) (l 16,100) 30,258 146,358
Other Financing Sources(Uses)
Transfers in 100 100 - (100)
Transfers out (75,000) (75,000) (50,000) 25,000
Total other financing
sources(uses) (74,900) (74,900) (50,000) 24,900
Net Change in Fund Balance (191,000) (191,000) (19,742) 171,258
Fund Balance-Beginning of Year 191,000 191,000 68,122 (122,878)
Fund Balance-End of Year $ - $ - 48,380 $ 48,380
Adjustments to generally accepted accounting principles
(US GAAP)basis:
Deschutes Counry Extension and 4-H County Service District
Construcrion Fund 408,866
Fund Balance-US GAAP Basis $ 457,246
19
Deschutes County Extension and 4-H County Service District
Schedule of Revenues, Expenditures and Changes in fund Balance-Budget and Actual—Construction Sub-Fund
Year Ended June 30, 2015
Budgeted Amounts Variance with
Original Final Actual Final Budget
Revenues
Interest $ 1,600 $ 1,600 $ 2,887 $ 1,287
Total revenues 1,600 1,600 2,887 1,287
Expenditures
Materials and services 100 100 - 100
Capital outlay 100 100 - 100
Total expenditures 200 200 - 200
Excess of Revenues Over
Expenditures 1,400 1,400 2,887 1,487
Other Financing Sources(Uses)
Transfers in 75,000 75,000 50,000 (25,000)
Transfers out (100) (100) - 100
Total other financing
sources 74,900 74,900 50,000 (24,900)
Net Change in Fund Balance 76,300 76,300 52,887 (23,413)
Fund Balance,Beginning of Year 355,700 355,700 355,979 279
Fund Balance,End of Year $ 432,000 $ 432,000 $ 408,866 $ (23,134)
20
Other Supplementary Information
June 30, 2015
Deschutes County Extension
and 4-H County Service District
www. debaill� .com
Deschutes County Extension and 4-H County Service District
Combining Balance Sheet—General Fund and Construction Sub-Fund
June 30, 2015
Construction
General Fund Sub-Fund Total
Assets
Cash and investments $ 178,608 $ 408,866 $ 587,474
Accounts receivable 2,642 - 2,642
Property taxes receivable 12,057 - 12,057
Total assets $ 193,307 $ 408,866 $ 602,173
Liabilities
Accounts payable $ 29,407 $ - $ 29,407
Unearned revenue 104,692 - 104,692
Totalliabilities 134,099 - 134,099
Deferred Inflows of Resources
Unavailable revenue -property taxes 10,828 - 10,828
Total deferred inflows of resources 10,828 - 10,828
Fund Balances
Assigned for future expenditures - 408,866 408,866
Unassigned 48,380 - 48,380
Total fund balances 48,380 408,866 457,246
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $ 193,307 $ 408,866 $ 602,173
21
Deschutes County Extension and 4-H County Service District
Combining Statement of Revenues, Expenditures and Changes in Fund Balance- General Fund and Construction
Sub-Fund
Year Ended June 30, 2015
Construction
General Sub-Fund Total
Revenues
Property taxes $ 428,232 $ - $ 428,232
Interest 2,156 2,887 5,043
Charges for services 87,975 - 87,975
Rent 3,685 - 3,685
Total revenues 522,048 2,887 524,935
Expenditures
Personnel services 167,233 - 167,233
Materials and services 324,557 - 324,557
Total expenditures 491,790 - 491,790
Excess of Revenues Over Expenditures 30,258 2,887 33,145
Other Financing Sources (Uses)
Transfers in - 50,000 50,000
Transfers out (50,000) - (50,000)
Total other financing sources (uses) (50,000) 50,000 -
Net Change in Fund Balances (19,742) 52,887 33,145
Fund Balances, Beginning of Year 68,122 355,979 424,l Ol
Fund Balances, End of Year $ 48,380 $ 408,866 $ 457,246
22
Deschutes County Extension and 4-H County Service District
Schedule of Property Tax Transactions
Year Ended June 30, 2015
Beginning Taxes
Balance and Interest Receivable
Tax Year 2014-15 Levy Adjustments (Discounts) Collections June 30, 2015
2014-2015 $ 437,202 $ (1,566) $ (10,895) $ 417,757 $ 6,984
20l 3-2014 g 032 (]30) 303 5,531 2,674
2012-2013 3,481 (]2) 306 2,365 1,410
2011-2012 1,994 (13) 340 1,788 533
2010-2011 677 (6) 149 665 155
2009-2010 206 (10) 38 124 110
2008-2009 1 ll (3) 14 39 g3
2007-2008 2� (1) 1 3 24
2006-2007 17 _ _ 1 16
Prior '71 1 2 6 68
Totals $ 451,818 $ (1,740) $ (9,742) 428,279 $ 12,057
Proceeds from sale of land 398
Adjustments for Accruals
June 30, 2014 (1,674)
June 30, 20]5 l,229
Modified accrual basis tax revenue $ 428,232
23
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CP�4s�.�Uti1NES5.AnVI5t�R5
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
To the Deschutes County Commissioners
Deschutes County Extension and 4-H County Service District
Bend, Oregon
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities and the general fund of Deschutes County Extension and 4-H County Service District(the
District) as of and for the year ended June 30, 2015, and the related notes to the financial statements,
which collectively comprise the District's basic financial statements, and have issued our report thereon
dated November 02, 2015.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District's internal
control over financial reporting (internal control)to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements,but not for the
purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly,we
do not express an opinion on the effectiveness of the District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions,to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the District's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, ar a combination of deficiencies, in internal control that is less
severe than a material weakness,yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this secrion and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not yet been identified.
www.�idebcilly.com 24
877 W.Main St.,Ste.800 � Boise,ID 83702-5858 � T 208.344.7150 I. F 208.344.7435 � EOE
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements,noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However,providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly,we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal
con�rol or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing StandaYds in considering the District's internal control and compliance.
Accordingly,this communication is not suitable for any other purpose.
� � �
Boise, Idaho
November 02, 2015
25
Audit Comments and Disclosures Required by State
Regulations
June 30, 2015
Deschutes County Extension
and 4-H County Service District
www. debaill� .com
Deschutes County Extension and 4-H County Service District
Audit Comments and Disclosures Required by State Regulations
June 30, 2015
Audit Comments and Disclosures Required by State Regulations
Oregon Administrative Rules 162-010-0000 through 162-010-0320 of the Minimum Standards for Audits of
Oregon Municipal Corporations,prescribed by the Secretary of State in cooperation with the Oregon State Board
of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit
reparts. The required statements and schedules are set forth in the preceding sections of this report. Required
comments and disclosures related to the audit of such statements and schedules are set forth in the following
pages.
26
�����
Eic�eBaill :
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CP�4s�.�Uti1NES5.AnVI5t�R5
Independent Auditor's Report Required by Oregon State Regulations
To Deschutes County Commissioners
Deschutes County Extension and 4-H County Service District
Bend, Oregon
We have audited the basic financial statements of Deschutes County Extension and 4-H County Service
District(the District) as of and far the year ended June 30, 2015, and have issued our report thereon dated
November 02, 2015. We conducted olir audit in accordance with auditing standards generally accepted in
the United States of America and the provisions of the Minimum Standards of Audits of Oregon
Municipal Corporations,prescribed by the Secretary of State. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the basic financial statements are free
from material misstatement.
Compliance
As part of obtaining reasonable assurance about whether the District's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws,regulations,
contracts, and grants, including provisions of Oregon Revised Statutes as specified in Oregon
Administrative Rules 162-010-0000 through 162-010-0320, as set forth below, noncompliance with
which could have a direct and material effect on the determination of�nancial statements amounts:
Instances of Non-
OAR Section Compliance Identified
162-010-0000 Preface Not Applicable
162-010-0010 Definitions Not Applicable
162-010-0020 General Requirements None noted
162-010-0030 Contracts None noted
162-010-0050 Financial Statements None noted
162-010-0115 Required Supplementary Information(RSI) None noted
162-010-0120 Supplementary Financial Information None noted
162-010-0130 Schedule of Revenues,Expenditures/Expenses,and Changes in Fund None noted
Balances/Net Position,Budget and Actua](Each Fund)
162-010-0140 Schedule of Accountability far Independently Elected Officials Not Applicable
162-010-0150 Schedule of Property Tax Transactions or Acreage Assessments None noted
162-010-0190 Other Financial or Statistical Information Not Applicable
162-010-0200 IndependenC Auditor's Review of Fiscal AfFairs None noted
162-010-0230 Accounting Records and Internal Control None noted
162-010-0240 Public Fund Deposits None noted
162-010-0250 Indebtedness Not Applicable
]62-010-0260 Budget None noted
162-010-0270 Insurance and Fidelity Bonds None noted
162-010-0280 Programs Funded from Outside Sources Not Applicable
162-010-0295 Highway Funds Not Applicable
162-010-0300 Investments None noted
162-010-0310 Public Contracts and Purchasing Not Applicable
162-010-0315 State School Fund Not Applicable
162-010-0316 Public Charter Schools Not Applicable
162-010-0320 Other Comments and Disclosures Not Applicable
www.�ic�e'�rilly�.com 27
877 W.Main St.,Ste.800 � Boise,ID 83702-5858 � T 208.344.7150 I. F 208.344.7435 � EOE
However,providing an opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of our test disclosed no instances of
noncompliance that are required to be reported under Minimum Standards for Audits of Oregon
Municipal Corporations,prescribed by the Secretary of State.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the District's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control over financial reporting. Accordingly, we do not eXpress an opinion on the effectiveness
of the District's internal control over financia] reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the District's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness,yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not yet been identified.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Minimum Standards for Audits of Oregon Municipal Corporations,prescribed by the Secretary of State,
in considering the District's internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
�
For Eide Bailly LLP
Boise Idaho
November 02, 2015
28