HomeMy WebLinkAboutDeschutes County 911 2020 Financial StatementsFinancial Statements
As of and For the Year Ended June 30, 2020
Deschutes County 9-1-1 County
Service District
A Component Unit of Deschutes County, Oregon
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Table of Contents
June 30, 2020
IndependentAuditor's Report ..................................................................................................................................... 1
Management's Discussion and Analysis..................................................................................................................... 4
Financial Statements
Statementof Net Position....................................................................................................................................
10
Statementof Activities.........................................................................................................................................
11
Balance Sheet — General Fund.............................................................................................................................
12
Reconciliation of the Governmental Fund Balance Sheet for the General Fund to the
Statementof Net Position................................................................................................................................
13
Statement of Revenues, Expenditures and Changes in Fund Balances — General Fund ......................................
14
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the
General Fund to the Statement of Activities....................................................................................................
15
Notes to Financial Statements..............................................................................................................................
16
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance —
Budget and Actual —General Fund................................................................................................................... 34
Schedule of Proportionate Share of the Net Pension Liability (Asset)................................................................ 35
Schedule of Employer Contributions................................................................................................................... 36
Schedule of Changes in Total OPEB Liability.................................................................................................... 37
Notes to Required Supplementary Information................................................................................................... 38
Other Supplementary Information
Schedule of Property Tax Transactions............................................................................................................... 39
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.. 40
Audit Comments and Disclosures Required by State Regulations............................................................................ 42
Independent Auditor's Report Required by Oregon State Regulations..................................................................... 43
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Independent Auditor's Report
The Deschutes County Commissioners
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the general
fund of Deschutes County 9-1-1 County Service District (the District), a component unit of Deschutes
County, Oregon, as of and for the year ended June 30, 2020, 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 financial 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 for 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 evaluating 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, 2020, 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.
Emphasis of a Matter
As discussed in Note 1, the financial statements of the District are intended to present the financial
position and changes in financial position attributable to the District. They do not purport to, and do not
present fairly the financial position of Deschutes County, Oregon as of June 30, 2020, and the changes in
its financial position for the year then ended in conformity with accounting principles generally accepted
in the United States of America. Our opinions have not been modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, the schedule of revenues, expenditures and changes in fund balance — budget
and actual — general fund (budgetary schedule), schedule of proportionate share of the net pension
liability (asset), the schedule of employer contributions, and schedule of changes in District's total OPEB
liability (RSI), 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 RSI 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 RSI 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 relates 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.
2
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 property tax transactions
(supplementary information) are presented for purposes of additional analysis and are not a required
part of the financial statements.
The supplementary information is the responsibility of management and was 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,
the supplementary information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 15,
2021 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 solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the District's internal control over financial reporting or on compliance. That report is
an integral part of an audit performed in accordance with Government Auditing Standards in considering
the 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 January 15, 2021 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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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2020
As management of Deschutes County 9-1-1 County Service District (the District), a component unit of Deschutes
County, Oregon, 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, 2020.
Financial Highlights
• The assets and deferred outflows of resources of Deschutes County 9-1-1 County Service District exceeded
its liabilities and deferred inflows of resources at June 30, 2020, by $11,840,238. Of this amount,
$3,531,910 is unrestricted.
• Total net position increased by $166,835, from June 30, 2019.
• As of June 30, 2020, Deschutes County 9-1-1 County Service District's governmental funds reported a
combined ending fund balance of $9,202,696.
• As of June 30, 2020, the unassigned fund balance in the General Fund was $9,202,696 or 82%, of total
General Fund Fiscal Year 2020 revenues.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Deschutes County 9-1-1 County Service
District's basic financial statements. These basic financial statements comprise three components: 1) government -
wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of Deschutes
County 9-1-1 County Service District's finances, in a manner similar to a private -sector business.
The Statement of Net Position presents information on all of the District's assets and deferred outflows of
resources and liabilities and deferred inflows of resources with the difference 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 9-1-1 County Service District is improving or deteriorating.
The Statement of Activities presents information showing how the District's net position changed during the fiscal
year ended June 30, 2020. Changes in net position are reported when the underlying event giving rise to the
change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this
statement for some items, for example, accrued property taxes and accrued vacation that will result in cash flows
in future fiscal periods.
Each of these government -wide financial statements, Statement of Net Position and Statement of Activities, show
the functions of the District that are supported primarily by taxes and intergovernmental revenues (governmental
activities). The governmental activity of the District is public safety.
The government -wide financial statements can be found on pages 10-11 of this report.
0
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2020
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. Each of the funds of
the District is classified as governmental funds.
Governmental funds Governmental funds are used to account for essentially the same functions as governmental
activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. A reconciliation from the Governmental
Fund Balance Sheet for the General Fund to the Government -wide Statement of Net Position and a reconciliation
from the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balance of the General
Fund 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, 2020.
The District adopts an annual budget for its General Fund. 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 12 and 14 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements. The notes to the financial statements can be found on pages 16-
33 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 9-1-1 County Service District, assets and deferred outflows of resources exceeded liabilities
and deferred inflows of resources by $11,840,238 at June 30, 2020.
Approximately 70%, $8,308,328 of the District's net position represents its investment in capital assets. The
District uses these capital assets to provide services to citizens and are, therefore, not available for future
spending.
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2020
The remaining 30%, $3,531,910, of Deschutes County 9-1-1 County Service District's net position may be used to
meet the District's on-going obligations to citizens and creditors.
The District's net position increased by $166,835 during the year ended June 30, 2020.
A comparison of the summarized government -wide statements to the prior year is as follows:
Assets
Current and other assets
Capital assets
Total assets
Deferred Outflows of Resources
Liabilities
Current liabilities
Noncurrent liabilities
Total liabilities
Deferred Inflows of Resources
Net Position
Investment in capital assets
Unrestricted
Total net position
Statements of Net Position
June 30, 2020 June 30, 2019 Change
$ 9,941,407 $ 9,439,636 $ 501,771
8,308,328 8,579,543 (271,215)
18,249,735 18,019,179 230,556
3,004,853 1,918,095 1,086,758
161,054 104,258 56,796
8,423,780 7,250,968 1,172,812
8,584,834 7,355,226 1,229,608
829,516 908,644 (79,128)
8,308,328 8,579,543 (271,215)
3,531,910 3,093,860 438,050
$ 11,840,238 $ 11,673,403 $ 166,835
9
Program revenues
Charges for services
General revenues
Property taxes
Investment earnings
Total revenues
Expenses
Public safety
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
Governmental Activities
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2020
Statements of Activities
Year Ended Year Ended
June 30, 2020 June 30, 2019 Change
$ 2,247,548 $ 1,752,080 $ 495,468
9,144,309 8,572,315 571,994
233,275 261,714 (28,439)
11,625,132 10,586,109 1,039,023
11,458,297 11,214,357 243,940
166,835 (628,248) 795,083
11,673,403 12,301,651 (628,248)
$ 11,840,238 $ 11,673,403 $ 166,835
Governmental activities, the only type of activity of Deschutes County 9-1-1 County Service District, increased
net position by $166,835 during the Fiscal Year ended June 30, 2020.
Financial Analysis of the District's Funds
Deschutes County 9-1-1 County Service District uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
General Fund
The focus of Deschutes County 9-1-1 County Service District's governmental funds are to provide information on
near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing
Deschutes County 9-1-1 County Service District's financing requirements. In particular, unassigned 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, 2020, $9,202,696 is the reported combined ending fund balance for Deschutes County 9-1-1
County Service District's governmental funds, an increase of $560,605 from June 30, 2019. This increase is due
primarily to lower than expected expenditures and partially due to higher than anticipated property tax collections
and charges for services.
7
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2020
As of June 30, 2020, the unassigned fund balance of Deschutes County 9-1-1 County Service District's General
Fund was $9,202,696. One measure of the General Fund's liquidity is the relationship of the total fund balance to
the Fund's total expenditures. The unassigned fund balance as of June 30, 2020, for the General Fund is 85% of
total General Fund Fiscal Year 2020 expenditures.
General Fund Budgetary Highlights
General Fund actual revenues exceeded estimated revenues by $725,879. Property taxes were $240,710 in excess
of budget, due to conservative budgeting practices in the estimated taxable assessed value growth rate. The
amount received for services was $239,311 more than estimated, and the amount received for intergovernmental
revenue was $218,190 more than estimated.
Capital Asset and Debt Administration
Capital Assets
Deschutes County 9-1-1 County Service District's investment in capital assets for its governmental activities as of
June 30, 2020, is $8,308,328, net of accumulated depreciation. This investment in capital assets includes
equipment, vehicles, intangibles and construction in progress on an upgrade to its CAD and communication
systems.
Additional information on Deschutes County 9-1-1 County Service District's depreciable capital assets is included
in Note 3.
Long-term Debt
Deschutes County 9-1-1 County Service 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
• In May 2016, the voters approved authorization to form a new district upon withdrawal of territory from the
existing District, effective July 1, 2017. Upon the withdrawal and formation, the assets and liabilities of the
District were transferred to the new district. The permanent tax rate for the new District is higher than that
of the former District thereby eliminating the need to rely on serial levies.
• The District's Assessed Valuation of Taxable Property increased from fiscal year 2020 to fiscal year 2021
by 5.4% to approximately $27.3 billion.
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2020
Request for Information
This financial report is designed to provide a general overview to those parties interested in Deschutes County
9-1-1 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.
9
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Statement of Net Position
June 30, 2020
Capital Assets
Construction in process
Primary
Land improvements
Government -
Equipment and vehicles
Governmental
Intangible assets
Activities
Assets
(6,424,937)
Current Assets
8,308,328
Cash and investments
8,968,943
Property taxes receivable
200,695
Accounts receivable
716,628
Prepaid PERS expense
55,141
Total current assets
9,941,407
Capital Assets
Construction in process
1,190,818
Land improvements
254,783
Equipment and vehicles
10,440,399
Intangible assets
2,847,265
Accumulated depreciation
(6,424,937)
Total capital assets
8,308,328
Total assets
18,249,735
Deferred Outflows of Resources
Net pension liability:
Differences between expected and actual experience 345,620
Changes in assumptions or other inputs 850,223
Changes in proportionate share 197,305
Contributions subsequent to the measurement date 1,611,706
Total deferred outflows of resources 3,004,853
Liabilities
Current liabilities - due within one year
Accounts payable
161,054
Compensated leave
668,572
Noncurrent liabilities - due in more than one year
Compensated leave
20,678
Net pension liability
6,267,240
Total OPEB liability
1,467,290
Total liabilities
8,584,834
Deferred Inflows of Resources
Net pension liability:
Changes in proportionate share 19,607
Net difference between projected and actual earnings on investments 177,670
Changes between employer's contributions and proportionate share of contributions 122,237
Total OPEB liability:
Differences between expected and actual experience 211,026
Changes in assumptions or other inputs 298,976
Total deferred inflows of resources 829,516
Net Position
Investment in capital assets 8,308,328
Unrestricted 3,531,910
Total net position $ 11,840,238
See Notes to Financial Statements 10
Expenses
Public safety
Program Revenues
Charges for services
Net program expenses
General Revenues
Property taxes levied for general purposes
Interest on investments
Total general revenues
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Statement of Activities
Year Ended June 30, 2020
Primary
Government -
Governmental
Activitie s
$ 11,458,297
2,247,548
9,210,748
9,144,309
233,275
9,377,583
166,835
11,673,403
$ 11,840,238
See Notes to Financial Statements 11
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Balance Sheet — General Fund
June 30, 2020
Assets
Cash and investments
Property taxes receivable
Accounts receivable
Total assets
Liabilities
Accounts payable
Deferred Inflows of Resources
Unavailable revenue - property taxes
Unavailable revenue - services performed
Total deferred inflows of resources
Fund Balance
Unassigned
Total fund balance
Total liabilities, deferred inflows of resources and fund balance
$ 8,968,943
200,695
716,628
$ 9,886,266
$ 161,054
170,572
351,944
522,516
9,202,696
9,202,696
$ 9,886,266
See Notes to Financial Statements 12
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Reconciliation of the of the Governmental Fund Balance Sheet for the General Fund to the
Statement of Net Position
June 30, 2020
Total fund balance for governmental funds $ 9,202,696
Amounts reported for governmental activities in the Statement of Net Position are different because:
Prepaid PERS expenses are not financial resources and, therefore, are not reported
in the fund.
55,141
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported on the Balance Sheet.
8,308,328
Contributions to the pension plan subsequent to measurement date - pension liability
1,611,706
Some of the District's receivables will be collected after year-end, but are not currently
available resources and, therefore, are unavailable in the General Fund.
522,516
Compensated absences are reported as expenditures in the period paid and,
therefore, are not reported as obligations on the Balance Sheet.
(689,250)
Net pension liability is not due and payable in the current period and, therefore,
is not reported on the Balance Sheet.
(6,267,240)
Differences between expected and actual experience - pension liability
345,620
Changes between employer contributions
and proportionate share of contributions - pension liability
(122,237)
Changes in proportionate share - pension liability
177,698
Net change in proportionate share - pension liability
(177,670)
Change in assumptions and other inputs - pension liability
850,223
Other post -employment benefits are not due and payable in the current period
and, therefore, are not reported on the Balance Sheet.
(1,467,290)
Differences between expected and actual experience - OPEB liability
(211,026)
Change in assumptions and other inputs - OPEB liability
(298,976)
Net Position of Governmental Activities $ 11,840,238
See Notes to Financial Statements 13
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Statement of Revenues, Expenditures and Changes in Fund Balances — General Fund
Year Ended June 30, 2020
Revenues
Property taxes
Investment earnings
Charges for services
Intergovernmental revenue
Total revenues
Expenditures
Public safety
Capital outlay
Total expenditures
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
$ 9,154,329
233,275
603,098
1,292,506
11,283,209
10,052,812
669,792
10,722,604
560,605
8,642,091
$ 9,202,696
See Notes to Financial Statements 14
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the General Fund to
the Statement of Activities
Year Ended June 30, 2020
Net Change in Fund Balance - Total Governmental Fund
$ 560,605
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 PERS
expenses, accrued compensated absences and total OPEB liability) do not require the use
of current financial resources and, therefore, are not reported as expenditures (432,020)
Accounting for the District's defined benefit cost-sharing pension plan.
Contributions to pension plan made subsequent to measurement date
Pension expense
Governmental funds report capital outlay as expenditures. However, in the
Statement of Activities, the cost of those assets is allocated over their estimated
useful lives and reported as depreciated expense.
Capital outlay
Depreciation
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.
Total of reconciling items
Changes in Net Position of Governmental Activities
1,119,063
(1,151,521)
683,015
(954,230)
341,923
(393,770)
$ 166,835
See Notes to Financial Statements 15
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Note 1 - Organization and Summary of Significant Accounting Policies
The District
The Deschutes County 9-1-1 Service District (the District), a component unit of Deschutes County, Oregon, was
established under ORS 401.720 on April 13, 1988, for the purpose of providing emergency communication (9-1-
1) services for Deschutes County (the County). The 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 all of the activities of the government. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which
rely to a significant extent on fees and charges for support. The District has no business -type activities or
fiduciary funds.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit
from goods, services or privileges provided by a given function or segment; and 2) grants and contributions that
are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general revenues.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items
are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 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 position is 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 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 associated with the 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.
As a general rule, the effect of any interfund activity has been eliminated from the government -wide financial
statements.
16
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
The District reports the following governmental funds:
General Fund - The General Fund is utilized to account for the transactions of the District. Property taxes
and law enforcement contracts are its principal sources of revenue. Expenditures are for the operation and
administration of the District.
Budget Policy
The District prepares a budget for all funds, which meets the requirements of state laws. The resolution
authorizing appropriations for each fund sets the level by which expenditures cannot legally exceed
appropriations. Appropriations are established on a programmatic basis. Budget categories are: public safety, debt
service, transfers, and contingency. The detailed budget document contains more specific detailed information for
the above-mentioned expenditure categories. Unexpected additional resources may be added to the budget
through the use of a supplemental budget and appropriations 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 with 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 organization.
• 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 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 of the financial statements of Deschutes
County, since the District's governing board is comprised of the Deschutes County Commissioners. The District
also has a seven -member executive board that oversees operations.
17
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Cash, Investments in External Investment Pool and Investment Income
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 commercial 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, corporate
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 land improvements, equipment, vehicles, intangibles and construction in progress
are reported in the government -wide financial statements. In the governmental fund statements, capital assets are
charged to expenditures as purchased. Capital assets are recorded at historical cost. Per GASB 72, Fair Value
Measurement and Application, donated assets are recorded at acquisition value as of the date of the donation.
Capital assets are defined by the District as assets with an initial cost of $5,000 or more and an estimated useful
life greater than one year. 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.
18
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
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:
Asset
Years
Land improvements 10 - 15 years
Equipment, vehicles and intangibles 5 years
Deferred Outflows / Inflows of Resources
In addition to assets, the Government -wide Statement of Net Position and/or the Governmental Fund Balance
Sheet will sometimes report a separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of net position that applies to future
period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred
outflows arising from the District's participation in the Oregon Public Employees Retirement System (OPERS)
comprise this statement element.
In addition to liabilities, the Government -wide Statement of Net Position and/or the Governmental Fund Balance
Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that applies to future period(s)
and so will not be recognized as an inflow of resources (revenue) until that time. Deferred inflows of resources, as
a result of the accounting for the District's post -employment retirement plans, are reported on the Government -
wide Statement of Net Position. Deferred inflows of resources are reported on the Governmental Fund Balance
Sheet of the General Fund as a result of reporting using the modified accrual method. The government fund
reports unavailable revenues from property taxes. These amounts are deferred and recognized as an inflow of
resources in the period the amounts become available.
Compensated Absences
Accumulated vested vacation pay is accrued as it is earned. Accrued vacation payable is recorded at actual
accrued hours times current pay rates plus related fringe benefits. The amount represents a reconciling item
between the fund -level and government -wide presentations.
Sick pay, which does not vest, is recognized when leave is taken.
Pension Plans
For purposes of measuring the net pension liability and pension expense, information about the fiduciary net
position of the OPERS cost-sharing multiple employer defined benefit pension plan (benefit plan) and additions
to/deductions from the benefit plan's fiduciary net position have been determined on the same basis as they are
reported by the benefit plan. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms. Investments of the plan are reported at
fair value.
19
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Other Post -Employment Benefits Obligation (Total OPEB liability)
The total OPEB liability is recognized as a long-term liability in the government -wide Statement of Net Position.
The liability reflects the present value of expected future payments for post -employment benefits other than
pension.
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 2020 fiscal year tax levy was $9,244,903.
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 government funds balance sheet as receivables.
Collections within sixty days subsequent to year-end have been accrued and the remaining taxes receivable are
recorded as deferred revenue on the modified accrual basis of accounting since they are not deemed available to
finance operations of the current period.
Fund Balance Reporting
The Governmental Accounting Standards Board 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 District's 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 or committed. Assignments are made by the District
Administrator based on the District Governing Board's direction.
5. Unassigned fund balance is the residual classification for 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.
20
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
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.
Tax Abatements
The District participates in a number of property tax abatement programs. All such abatement programs are
authorized by Oregon revised statutes or by local resolution or ordinance. Some programs are initiated by the
District and others by other local governments and state agencies. As the amount of taxes abated during fiscal
year 2020 is immaterial, no additional disclosure has been made.
Note 2 - Cash and Investments
As of June 30, 2020, the District had a deposit of $8,968,943 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, 2020, is as follows:
Balance Balance
June 30, 2019 Increases Decreases June 30, 2020
Construction in progress $ 1,855,944 $ 669,791 $(1,334,917) $ 1,190,818
Land improvements 254,783 - - 254,783
Software 1,814,617 1,032,648 - 2,847,265
Equipment and vehicles 10,124,906 315,493 10,440,399
Total 14,050,250 2,017,932 (1,334,917) 14,733,265
Less accumulated depreciation
Land improvements
Software
Equipment
Total accumulated
depreciation
(81,895) (18,199)
(1,782,241) (118,203)
(3,606,571) (817,828)
(5,470,707) (954,230)
- (100,094)
- (1,900,444)
- (4,424,399)
- (6,424,937)
$ 8,579,543 $ 110631702 $(1,334,917) $ 81308,328
21
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Note 4 - Participation in Public Employees Retirement System
Plan descriptions: Employees of the District are provided with pensions through the Oregon Public Employees
Retirement System, (OPERS), which is a cost-sharing multiple -employer defined benefit plan. All the benefits of
OPERS are established by the Oregon legislature pursuant to Oregon Revised Statute (ORS) Chapters 238 and
238A. The ORS Chapter 238 Defined Benefit Pension Plan, known as Tier 1/Tier 2 is closed to new members
hired on or after August 29, 2003. A second program, the Chapter 238A-OPERS Pension Program (OPSRP-DB),
is described in the second portion of this note. Membership in the programs is delineated based on date of hire.
OPERS issues a publicly available financial report which can be obtained at
https://www.ore og n. zov/pers/EMP/Pafzes/Actuarial-Financial-Information.aspx
Benefits Provided Under the Programs
Pension
Benefits
Chapter 238 -Tier One and Tier Two
The OPERS retirement allowance is payable
monthly for life. The allowance may be selected
from 13 retirement benefit options. These
options include survivorship benefits and lump -
sum refunds. The basic benefit is based on years
of service and final average salary. A percentage
(2.0 percent for police and fire employees, 1.67
percent for general service employees) is
multiplied by the number of years of service and
the final average salary. Benefits may also be
calculated under a formula plus an annuity (for
members who were contributing before August
21, 1981,) or a money match computation if a
greater benefit results.
Chapter 238A-OPERS Pension Program
(OPSRP-DB)
The ORS 238A Defined Benefit Pension Program
provides benefits to members hired on or after
August 29, 2003. This portion of the OPSRP
provides a life pension funded by employer
contributions. Benefits are calculated with the
following formula for members who attain
normal retirement age:
Police and fire: 1.8 percent is multiplied by the
number of years of service and the final average
salary. Normal retirement age for police and fire
members is age 60 or age 53 with 25 years of
retirement credit. To be classified as a police or
fire member, the individual must have been
employed continuously as a police or fire member
for at least five years immediately preceding
retirement.
General service: 1.5 percent is multiplied by the
number of years of service and the final average
salary. Normal retirement age for general service
members is 65, or age 58 with 30 years of
retirement credit.
A member of the pension program becomes
vested on the earliest of the following dates: the
date the member completes 600 hours of service
in each of five calendar years, the date the
member reaches normal retirement age, and, if
the pension program is terminated, the date on
which termination becomes effective.
22
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Disability
A member with 10 or more years of
A member who has accrued 10 or more years of
Benefits
creditable service who becomes disabled
retirement credits before the member becomes
from other than duty -connected causes may
disabled or a member who becomes disabled due
receive a non -duty disability benefit. A
to job-related injury shall receive a disability
disability resulting from a job -incurred
benefit of 45 percent of the member's salary
injury or illness qualifies a member
determined as the last full month of employment
(including OPERS judge members) for
before the disability occurred.
disability benefits regardless of the length
of OPERS-covered service. Upon
qualifying for either a non -duty or duty
disability, service time is computed to age
58 (55 for police and fire members) when
determining the monthly benefit.
Benefit
Members may choose to continue
No ability to change.
Changes
participation in a variable equities
after
investment account after retiring and may
Retirement
experience annual benefit fluctuations due
to changes in the market value of equity
investments.
Cost of
Under ORS 238.360 monthly benefits are
Under ORS 238A.210 monthly benefits are
Living
adjusted annually through cost -of -living
adjusted annually through cost -of -living changes.
Adjustments
changes (COLA). The cap on the COLA in
The cap on the COLA in fiscal year 2021 and
fiscal year 2021 and beyond will vary based
beyond will vary based on the amount of the
on the amount of the annual benefit.
annual benefit.
Contributions
OPERS funding policy provides for monthly employer contributions at actuarially determined rates. These
contributions, expressed as a percentage of covered payroll, are intended to accumulate sufficient assets to pay
benefits when due. This funding policy applies to the OPERS Defined Benefit Plan and the Other
Postemployment Benefit Plans. Ultimate authority for setting and changing the laws governing contributions rests
with the Oregon legislature.
Employer contribution rates during the period were based on the December 31, 2017 actuarial valuation, which
became effective July 1, 2019. The state of Oregon and certain schools, community colleges, and political
subdivisions have made unfunded actuarial liability payments, and their rates have been reduced. Employer
contributions for the year ended June 30, 2020, were $716,449, excluding amounts to fund employer specific
liabilities, or employer specific side -accounts. The rates, presented as a percentage of covered payroll, for the
District in effect for the fiscal year ended June 30, 2020, were:
General Service
Police and Fire
Chapter 238 - Tier One / Tier Two
20.07%
26.67%
Chapter 238A - OPERS Pension
Program (OPSRP - DB)
14.26%
18.89%
23
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2020, the District reported a liability of $6,267,240 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2019, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of December 31, 2017 and rolled
forward to June 30, 2019. The District's proportion of the net pension liability was based on the District's
projected long-term contribution effort as compared to the total projected long-term contribution effort of all
employers.
Rates of every employer have at least two major components:
Normal Cost Rate: The economic value, stated as a percent of payroll, for the portion of each active
member's total projected retirement benefit that is allocated to the upcoming year of service. The rate is in
effect for as long as each member continues in OPERS-covered employment. The current value of all
projected future Normal Cost Rate contributions is the Present Value of Future Normal Costs (PVFNC).
The PVFNC represents the portion of the projected long-term contribution effort related to future service.
2. UAL Rate: If system assets are less than the actuarial liability, an Unfunded Actuarial Liability (UAL)
exists. UAL can arise in a biennium when an event such as experience differing from the assumptions
used in the actuarial valuation occurs. An amortization schedule is established to eliminate the UAL that
arises in a given biennium over a fixed period of time if future experience follows assumptions. The UAL
Rate is the upcoming year's fixed component of the cumulative amortization schedules, stated as a
percent of payroll.
The employer's PVFNC depends on both the normal cost rates charged on the employer's payrolls, and on the
underlying demographics of the respective payrolls. For OPERS funding, employers have up to three different
payrolls, each with a different normal cost rate: (1) Tier 1/Tier 2 payroll, (2) OPSRP general service payroll, and
(3) OPSRP police and fire payroll.
Since many governments in Oregon have sold pension obligation bonds and deposited the proceeds with OPERS
(referred to as side accounts or transitional liability or surplus), adjustments are required. After each employer's
projected long-term contribution effort is calculated, that amount is reduced by the value of the employer's side
account, transitional liability/surplus, and the pre-SLGRP liability/surplus (if any). This is done as those balances
increase/decrease the employer's projected long-term contribution effort because side accounts are effectively
pre -paid contributions.
Looking at both rate components, the projected long-term contribution effort is the sum of the PVFNC and UAL.
The PVFNC part of the contribution effort pays for the value of future service while the UAL part of the
contribution effort pays for the value of past service not already funded by accumulated contributions and
investment earnings. Each of the two contribution effort components are calculated at the employer -specific level.
The sum of these components across all employers is the total projected long-term contribution effort.
As the County's share in the Oregon Public Employees Retirement System is .663%, which is an increase of
4.83% from its proportion presented on June 30, 2019 and the County's allocation to the District is 5.463% and
the District's share of OPERS is .036% which is an increase of .098% and .002%, respectively, from the prior
year.
24
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
For the year ended June 30, 2020, the District recognized a pension expense of $1,585,048. At June 30, 2020, the
District reports deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources.
Net difference between projected and actual earnings on
investments
Differences between expected and actual experience
Changes in proportionate share
Changes of assumptions or other inputs
Changes between employer's contributions and
proportionate share of contributions
Contributions subsequent to measurement date
Deferred Outflow Deferred Inflow
of Resources of Resources
$ - $ 177,670
345,620 -
197,305 19,607
850,223 -
1,611,706
122,237
Total $ 3,004,854 $ 319,514
The District's contributions made subsequent to the measurement date will be recognized in the District's pension
expense in the following year. The net amount of the District's remaining deferred outflows of resources and
deferred inflows of resources that will be recognized in the District's pension expense in the subsequent five years
in the aggregate are shown in the table below.
Total $ 1,073,634
Actuarial Assumptions
The employer contribution rates effective July 1, 2019, through June 30, 2021, were set using the entry age
normal actuarial cost method. For the Tier One / Tier Two component of the OPERS Defined Benefit Plan, this
method produced an employer contribution rate consisting of (1) an amount for normal cost (the estimated
amount necessary to finance benefits earned by the employees during the current service year), and (2) an amount
for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with
new unfunded actuarial accrued liabilities being amortized over 20 years.
For the OPSRP Pension Program component of the PERS Defined Benefit Plan, this method produced an
employer contribution rate consisting of (a) an amount for the normal cost (the estimated amount necessary to
finance benefits earned by the employees during the current service year), (b) an actuarially determined amount
for funding a disability benefit component, and (c) an amount for the amortization of unfunded actuarially accrued
25
Amounts
Subsequent
fiscal years
Reported
2020-
2021
$ 601,368
2021-
2022
80,021
2022-
2023
209,431
2023-
2024
168,497
2024-
2025
14,317
Total $ 1,073,634
Actuarial Assumptions
The employer contribution rates effective July 1, 2019, through June 30, 2021, were set using the entry age
normal actuarial cost method. For the Tier One / Tier Two component of the OPERS Defined Benefit Plan, this
method produced an employer contribution rate consisting of (1) an amount for normal cost (the estimated
amount necessary to finance benefits earned by the employees during the current service year), and (2) an amount
for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with
new unfunded actuarial accrued liabilities being amortized over 20 years.
For the OPSRP Pension Program component of the PERS Defined Benefit Plan, this method produced an
employer contribution rate consisting of (a) an amount for the normal cost (the estimated amount necessary to
finance benefits earned by the employees during the current service year), (b) an actuarially determined amount
for funding a disability benefit component, and (c) an amount for the amortization of unfunded actuarially accrued
25
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
liabilities, which are being amortized over a fixed period with new unfunded actuarially accrued liabilities being
amortized over 16 years.
For comparison purposes a summary of the economic assumptions used for the December 31, 2017 actuarial
valuation are shown below:
Actuaria lMethods and Assumptions:
Vahiation Date
December31.2017
Measurement Date
June 30.2019
Experience Study
2016, published July 26.2017
Actu aria 1 As sumptions:
Actuarial Cost Method
Entry Age Normal
Amortization Method
The UAL is amortized as a level percentage of combined payroll.
Asset Valuation Method
Market Value of Assets. Exchiding Resen-es
Inflation Rate
2.50 percent
Healthcare Inflation Rate
4.20 to 6.50 pereent until year 2093
Investment Rate of Return
7.20 percent
Future General Wage Inflation
3.50 percent (includes the inflation rate)
Cost of living adpistruents
Blend of 2.00% COLA and graded COLA (1.25%10.15%) in
accordance with Moro Decision: blend based on service
Mortality
I RP 2014 Healthy Annuitant Tables
Actuarial valuations of an on-going plan involve estimates of the value of reported amounts and assumptions
about the probability of events far into the future. Actuarially determined amounts are subject to continual
revision as actual results are compared to past expectations and new estimates are made about the future.
Experience studies are performed as of December 31st of even numbered years. The economic assumptions and
estimates shown above are based on the 2016 experience study which reviewed experience for the four-year
period ended December 31, 2016.
26
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
The long-term expected rate of return on plan investments was developed based on the forward looking capital
market economic model. The table below presents the assumptions related to asset allocation and expected rates
of return by major asset class using the 50th percentile. The target allocation and best estimates of arithmetic real
rates of return for each major class are summarized in the following table:
Asset Class
Target Allocation % *
Rebalancing Range %
Expected Annual Policy
Return %
Public Equity
32.5
27.5-37.5
7.3
Private Equity
17.5
14.0-21.0
9.2
Total Equity
50.0
45.0-55.0
Fixed Income
20.0
15.0-25.0
2.8
Risk Parity
2.5
0.0-2.5
6.3
Real Estate
12.5
9.5-15.5
7.0
Alternatives
15.0
7.5-17.5
7.0
Total Fund
100.0
7.2
Discount Rate
The discount rate used to measure the total pension liability was 7.20 percent for the Defined Benefit Pension
Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan
members and those of the contributing employers are made at the contractually required rates, as actuarially
determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to
make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of
return on pension plan investments for the Defined Benefit Pension Plan was applied to all periods of projected
benefit payments to determine the total pension liability.
27
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Sensitivity of the County's Proportionate share of the Net Pension Liability to Changes in the Discount
Rate
The following presents the County's proportionate share of the net pension liability (asset) calculated using the
discount rate of 7.20 percent, as well as what the County's proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1 -percentage point lower (6.20 percent) or 1 -percentage point
higher (8.20 percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(6.20%) (7.20%) (8.20%)
Employers' Net Pension Liability
Employer -Specific $ 10,036,430 $ 6,267,240 $ 3,112,948
Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued OPERS
financial report that can be found at http://www.oregon.gov/pers.
Note 5 - Other Post -Employment Benefits
Oregon Public Employees Retirement System — Retirement Health Insurance Account (RHIA)
Plan Description As a member of Oregon Public Employees Retirement System (OPERS) the District contributes
to the Retirement Health Insurance Account (RHIA) for each of its eligible employees. RHIA is a cost-sharing
multiple -employer defined benefit other postemployment benefit plan administered by OPERS. RHIA pays a
monthly contribution (currently $60 per month) toward the cost of Medicare companion health insurance
premiums of eligible retirees. Oregon Revised Statute (ORS) 238.420 established this trust fund. Authority to
establish and amend the benefit provisions of RHIA reside with the Oregon Legislature. The Plan is closed to new
entrants after January 1, 2004. OPERS issues a publicly available financial report that includes financial
statements and required supplementary information. That report may be obtained by writing to Oregon Public
Employees Retirement System, PO Box 23700, Tigard, OR 97281-3700.
Funding Policy Because RHIA was created by enabling legislation (ORS 238.420), contribution requirements of
the plan members and the participating employers were established and may be amended only by the Oregon
Legislature. ORS requires that an amount equal to $60 or the total monthly cost of Medicare companion health
insurance premiums coverage, whichever is less, shall be paid from the Retirement Health Insurance Account
established by the employer, and any monthly cost in excess of $60 shall be paid by the eligible retired member in
the manner provided in ORS 238.410. To be eligible to receive this monthly payment toward the premium cost
the member must: (1) have eight years or more of qualifying service in PERS at the time of retirement or receive a
disability allowance as if the member had eight years or more of creditable service in PERS; (2) receive both
Medicare Parts A and B coverage; and (3) enroll in a PERS-sponsored health plan. A surviving spouse or
dependent of a deceased PERS retiree who was eligible to receive the subsidy is eligible to receive the subsidy if
he or she (1) is receiving a retirement benefit or allowance from PERS, or (2) was insured at the time the member
died and the member retired before May 1, 1991.
28
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Contributions Participating public employers are contractually required to contribute to RHIA at a rate assessed
each biennium by OPERS. For fiscal year 2020 the rate is 0.06% of annual covered payroll for Tier 1/Tier 2
employees and 0.00% for OPSRP employees. The OPERS sets the net -retiree healthcare rate based on the
estimated OPEB expense of the employer, an amount actuarially determined in accordance with the parameters of
GASB Statement 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The
OPEB expense represents the annual cost allocated to the current year (normal cost) and the amortization of any
unfunded accrued liabilities of the plan (UAL cost). The unfunded accrued liabilities are amortized over a closed
period equal to the average of the expected remaining lives of all employees that are provided with OPEB through
the OPEB plan (active employees and inactive employees). The County's contributions to RHIA were consistent
with the net -retiree healthcare rate as charged by OPERS. Amounts paid for RHIA were included with the
payments for the retirement plan in Note 4. The District's participation in RHIA is immaterial to the financial
statements.
Deschutes County Retiree Health Plan
Plan Description The District participates in Deschutes County's single -employer defined benefit postemployment
healthcare plan, Deschutes County Retiree Health Plan which provides medical benefits to eligible retired
employees of Deschutes County, Deschutes County 9-1-1 County Service District and their beneficiaries. The
Plan has two components: the Self -Pay Health Plan (COBRA) which is required by Oregon Revised Statutes
243.303 to provide retirees with group health and dental insurance from the date of retirement to age 65 at the
same rate provided to current employees and the Subsidized Health Plan under which the District pays all or part
of the health care costs for eligible retirees under several collective bargaining agreements. The criteria to
determine whether an employee is eligible include: years of service, employee age, disability due to line of duty
and whether the employee has vested in the respective retirement plan.
Employees who retire from the District with more than fifteen (15) years and less than thirty (30) years of fulltime
service are eligible to receive a District contribution towards their monthly insurance premiums until age sixty-
five (65) or until eligible for Medicare, in accordance with a schedule recommended by the EBAC and approved
by the Board of County Commissioners. The schedule of retiree premiums and District contributions is shown
below for Calendar year 2020.
29
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Deschutes County Retirement Health Plan
Deschutes County Employee Benefit Plan
Rates for January 1, 2020 - December 31, 2020*
*5% decrease to County contributions effective 7/1/2019
Rates
Active Employee
sigh Deductible
Dental Plan
Standard Plan
$746.00
Dental Plan
MonthlyPremiums:
1
Plan
$139.00
Composite Rate $1,462.13
1 $890.78
$162.44
'Opt -out stipend is $125 to employee per month.
30+ Years of 1.0 FTE Service:
Retiree Monthly
Premiums (dental):
Standard Plan
Dental Plan
Retiree Only
$746.00
$69.00
Retiree + Spouse
$1,493.00
$139.00
Retiree + Children
$1,305.00
$122.00
Retiree + Fam ily
$2,052.00
$191.00
a30 Years of Service:
Retiree Monthly
Preniums.
Standard Plan
High Deductible
Plan
Dental Plan
Retiree Only
$746.00
$589.00
$69.00
Retiree + Spouse
$1,493.00
$1,168.00
$139.00
Retiree + Children
$1,305.00
$1,022.00
$122.00
Retiree + Fam gy
$2,052.00
$1,606.00
$191.00
COBRA Monthly
Premiums:
Standard Plan
High Deductible
Plan
Dental Plan
Employee Only
$746.00
$589.00
$69.00
Employee + Spouse
$1,493.00
$1,168.00
$139.00
Employee + Children
$1,305.00
$1,022.00
$122.00
Employee + Family
$2,052.00
1 $1,606.00
$191.00
Premium Cost Snaring
Employee cost share is $85 of
Medical Plan and $5 of Dental
Ran.
30+ Year Retiree cost share is
$85 of Medical Plan and $5 of
Dental Plan.
Years of
County Contribution
Service:
per years of service:
0-14
$0.00
15-19
$172.20
20-24
$345.45
25-29
$517.65
)BRA participant pays 100%
premium. 2% Admin Fee is
charged in addhon to rates.
30
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the Total OPEB Liability of
the plan and the annual OPEB expense of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The schedule of changes in the
County's Total OPEB Liability, presented as required supplementary information, presents trend information
about whether the Total OPEB Liability is increasing or decreasing over time relative to the covered -employee
payroll. The measurement date of the actuarial results presented is June 30, 2020.
Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the
substantive plan (the Plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer
and plan members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
Assumptions used in calculating the actuarial liabilities associated with the Deschutes County Retiree Health Plan
include a 3.50% investment return; an assumed inflation rate of 2.50%; an insurance premium annual trend rate of
5.00% into perpetuity; a retiree health claims annual trend rate of 5.00% into perpetuity; and retirement rates used
by Oregon PERS adjusted for County trends. Because there are no assets, the investment return of 3% is set to
equal the expected long-term return on the County's own investments. The annual salary increase for employees
are assumed to be 3.50% in all future years. Rates of withdrawal and mortality are generally the same rates that
were used in the December 31, 2017 actuarial valuation of the Oregon Public Employees Retirement System as
referenced in the PERS footnote 4.
The Actuarial cost method used in the valuation of this plan is the Entry Age Normal. Under this method, the
actuarial present value of the projected benefits of each active employee included in the valuation is allocated on a
level dollar basis over the service of the active employee between assumed Entry Age (date of hire) and assumed
Exit Age(s). The portion of this actuarial present value allocated to the valuation year is called the service cost for
that active employee. The present value of benefits for current retirees plus the accumulated value of all prior
service costs is the Total OPEB Liability. Under this method, the actuarial gains (losses), as they occur, reduce
(increase) the Total OPEB Liability. The Deschutes County Retiree Health Plan is deemed "unfunded" in
accordance with the relevant GASB statements.
Changes in Total OPEB Liability
Category District Plan
Total OPEB liability - beginning - 06/30/2019 $ 1,442,028
Changes for the year
Service cost 78,267
Interest 47,975
Changes in assumptions or other inputs (41,660)
Benefit payments (59,320)
Net change in total OPEB liability 25,262
Total OPEB liability - ending - 06/30/2020 S 1,467,290
31
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Total OPEB liability for the District Plan as of the measurement date is presented below showing the sensitivity
of that amount to a 1% higher and lower Discount rate and a 1% higher or lower Health Care trend rate.
1% Decrease Current Discount 1% Increase
(2.50%) Rate (3.50%) (4.50%)
Total OPEB Liability on June 30, 2020 $ 1,612,122
Total OPEB Liability on June 30, 2020
1% Decrease
$ 1,467,290
Current Health Care
Trend Rates
$ 1,334,419
1% Increase
$ 1,275,022 $ 1,467,290 $ 1,697,933
The County's contributions made subsequent to the measurement date will be recognized in the County's OPEB
expense in the following year. The net amount of the County's deferred outflows of resources and deferred
inflows of resources that will be recognized in the County's OPEB expense in the subsequent five years, and in
the aggregate, are shown in the table below.
Employer subsequent
fiscal yearspost-measurement
Deferred Outflow/(Inflow) of Resources (prior to
date contributions)
FY 2021
$ (56,044
FY 2022
56,044
FY 2023
56,044
FY 2024
56,044
FY 2025
(56,044)
Thereafter
229,781
Total
510,002
Note 6 - Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage and destruction of assets; errors
and omissions; injuries to employees and others; and natural disasters for which the District participates in the
County's self-insurance program. There have been no settlements in excess of insurance coverage and reserves in
any of the past three fiscal years.
32
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2020
Note 7 - Intergovernmental Agreement
The District entered into an intergovernmental agreement with the County in fiscal year 2009. Under this
agreement, the District is responsible to pay its share of debt incurred by the County, which was issued to finance
the construction of a building to be used by the District for its operations.
The future minimum payments under this agreement, subject to continued funding are as follows:
Fiscal Year Ending June 30,
2021
$ 172,098
2022
168,995
2023
175,895
2024
177,130
2025
173,068
2026-2028
513,241
Total
$ 1,380,427
33
Required Supplementary Information
As of and For the Year Ended June 30, 2020
Deschutes County 9-1-1 County
Service District
A Component Unit of Deschutes County, Oregon
eidebailly.com
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General Fund
Year Ended June 30, 2020
REVENUES
Taxes - property
Investment earnings
Charges for services
Intergovernmental
Transfers in
Total revenues
EXPENDITURES
Current - departmental:
Emergency services
Not allocated to organizational units:
Contingency
Total expenditures
Net change in fund balance
Fund balance - Beginning of year
Budgeted Amounts
Original
Budget Final Budget
$ 8,913,619
157,000
382,731
1,110,000
2,334,185
14,584,521
$ 8,913,619
157,000
382,731
1,110,000
Actual
$ 9,154,329
184,668
622,042
1,328,190
10,563,350 11,289,229
12,250,336 10,722,604
Variance
with Final
Budget
$ 240,710
27,668
239,311
218,190
725,879
1,527,732
2,978,605
2,978,605 -
2,978,605
17,563,126
15,228,941 10,722,604
4,506,337
(4,665,591)
(4,665,591) 566,626
5,232,217
7,753,706 7,753,706
Fund balance - End of year $ 3,088,115 $ 3,088,115
Receivables not recognized on GAAP basis
Unrealized gain (loss) on investments
Unavailable revenue - services provided
Total fund balance, GAAP basis - End of Year
8,626,391 872,685
9,193,017 $ 6,104,902
(35,684)
64,306
(18,944)
$ 9,202,696
See Notes to Required Supplementary Information 34
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Proportionate Share of the Net Pension Liability (Asset)
Oregon Public Retirement System Defined Benefit Pension Plan
Last 6 Fiscal Years*
2015 2016 2017 2018 2019 2020
Proportionate of net
pension liability (asset)
0.01%
0.03%
0.03%
0.03%
0.03%
0.04%
Proportionate share of the
net pension liability (asset)
$ (596,590)
$ 1,736,619
$ 4,723,906
$ 4,667,224
$ 5,141,779 $
6,267,240
Covered payroll
$ 2,903,539
$ 2,943,341
$ 3,208,843
$ 3,644,740
$ 4,359,939 $
4,343,589
Proportionate share of the
net pension liability (asset)
as a percentage of its
covered payroll
-20.55%
62.15%
169.07%
128.05%
117.93%
144.29%
Plan fiduciary net position
as a percentage of the
total pension liability
103.59%
91.88%
80.53%
83.12%
82.07%
80.23%
*GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -
year trend is compiled, the District will present information for those use for which information is available.
The amounts presented for each fiscal year was determined as of June 30.
See Notes to Required Supplementary Information 35
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Employer Contributions
Oregon Public Retirement System Defined Benefit Pension Plan
Last 6 Fiscal Years*
*GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -
year trend is compiled, the District will present information for those use for which information is available.
The amounts presented for each fiscal year was determined as of June 30.
See Notes to Required Supplementary Information 36
2015
2016
2017
2018
2019
2020
Contractually required contributions
$ 225,456
$ 287,456
$ 319,262
$ 519,614
$ 519,818
$ 716,449
Contributions in relation to the
contractually required contribution
225,456
287,456
319,262
519,614
519,818
716,449
Contribution deficiency (excess)
-
-
-
-
-
-
District's covered payroll
$ 2,943,341
$ 3,208,843
$ 3,644,740
$ 4,359,939
$ 4,343,589
$ 4,387,355
Contributions as a percentage of
covered payroll
8.62%
9.72%
10.81%
11.92%
11.97%
16.33%
*GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -
year trend is compiled, the District will present information for those use for which information is available.
The amounts presented for each fiscal year was determined as of June 30.
See Notes to Required Supplementary Information 36
Service cost
Interest
Changes in assumptions or other inputs
Benefit payments
Net change in total
Total OPEB liability -beginning
Total OPEB liability - ending
Covered payroll
Total OPEB liability as a percentage
of covered payroll
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Changes in Total OPEB Liability
Last 3 Fiscal Years*
June 30, 2018 June 30, 2019 June 30, 2020
$ 105,012
$ 77,870
$ 78,267
68,868
68,855
47,975
(292,284)
(696,769)
(41,660)
(85,419)
(62,792)
(59,320)
(203,823)
(612,836)
25,262
2,258,687
2,054,864
1,442,028
$ 2,054,864
$ 1,442,028
$ 1,467,290
$ 3,644,740 $ 4,359,939 $ 4,343,589
56.38% 33.07% 33.78%
*GASB Statement No. 75 requires ten years of information to be presented in this table. However, until a full 10 -
year trend is compiled, the District will present information for those years for which information is available.
Data reported is measured as of July 1 st of each fiscal year.
See Notes to Required Supplementary Information 37
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Required Supplementary Information
June 30, 2020
Note 1 - Stewardship, Compliance and Accountability
The District adopts a resolution authorizing appropriations for each fund, which establishes the level by which
expenditures cannot lawfully exceed appropriations. Appropriations are established at the principal object level
for each fund — programmatic (personnel, materials and services, capital outlay), debt service, transfers to other
funds and operating contingency.
38
Other Supplementary Information
As of and For the Year Ended June 30, 2020
Deschutes County 9-1-1 County
Service District
A Component Unit of Deschutes County, Oregon
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Property Tax Transactions
Year Ended June 30, 2020
Adjustments for Accruals
June 30, 2019
June 30, 2020
Other tax distribution
Modified accrual basis tax revenue
(21,576)
30,122
30,624
$ 9,154,329
39
Beginning
Taxes
Balance and
Interest
Receivable
Tax Year
2019-20 Levy
Adjustments
(Discounts)
Collections
June 30, 2020
2019-2020
$ 9,244,903
$ 89
$ (237,968)
$ 8,889,997
$ 117,028
2018-2019
113,019
(728)
3,313
70,301
45,302
2017-2018
46,987
(29)
2,915
25,133
24,740
2016-2017
11,679
8,226
1,195
17,165
3,934
2015-2016
19,313
32,501
3,084
49,632
5,266
2014-2015
7,018
30,541
1,409
37,777
1,191
2013-2014
1,531
6,986
29
7,526
1,020
2012-2013
540
5,930
(88)
6,059
322
2011-2012
411
4,165
(67)
4,239
271
Prior
1,671
7,328
(46)
7,330
1,622
Totals
$ 9,447,072
$ 95,007
$ (226,225)
9,115,159
$ 200,695
Adjustments for Accruals
June 30, 2019
June 30, 2020
Other tax distribution
Modified accrual basis tax revenue
(21,576)
30,122
30,624
$ 9,154,329
39
EideBailly
CPAs & BUSINESS ADVISORS
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 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
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 9-1-1 County Service District (the District), a
component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2020, and the
related notes to the financial statements, which collectively comprise the District's basic financial
statements, and have issued our report thereon dated January 15, 2021.
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) as a basis for designing 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. Asignificant 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.
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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 financial statements. 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 control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Boise, Idaho
January 15, 2021
41
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Audit Comments and Disclosures Required by State Regulations
June 30, 2020
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 reports. 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.
42
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report Required by Oregon State Regulations
To Deschutes County Commissioners
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
We have audited the basic financial statements of Deschutes County 9-1-1 County Service District (the
District), a component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2020,
and have issued our report thereon dated January 15, 2021. We have audited, in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
the financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States and the provisions of the Minimum Standards for 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 162-010-0330 of the Minimum Standards for Audits
of Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on
the determination of financial statements 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.
We performed procedures to the extent we considered necessary to address the required comments
and disclosures which included, but were not limited to the following:
OAR
Section
162-010-0000
Preface
162-010-0010
Definitions
162-010-0020
General Requirements
162-010-0030
Contracts
162-010-0050
Financial Statements
162-010-0115
Required Supplementary Information (RSI)
162-010-0120
Supplementary Financial Information
162-010-0130
Schedule of Revenues, Expenditures / Expenses, and Changes in Fund
Balances / Net Position, Budget and Actual (Each Fund)
162-010-0140
Schedule of Accountability for Independently Elected Officials
162-010-0190
Other Financial or Statistical Information
162-010-0200
Independent Auditor's Review of Fiscal Affairs
162-010-0230
Accounting Records and Internal Control
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Instances of Non -
Compliance Identified
Not Applicable
Not Applicable
None Noted
None Noted
None Noted
None Noted
None Noted
None Noted
Not Applicable
Not Applicable
None Noted
None Noted
43
Section
162-010-0240
Public Fund Deposits
162-010-0250
Indebtedness
162-010-0260
Budget
162-010-0270
Insurance and Fidelity Bonds
162-010-0280
Programs Funded from Outside Sources
162-010-0295
Highway Funds
162-010-0300
Investments
162-010-0310
Public Contracts and Purchasing
162-010-0315
State School Fund
162-010-0316
Public Charter Schools
162-010-0320
Other Comments and Disclosures
162-010-0330
Extensions of Time to Deliver Audit Reports
Instances of Non -
Compliance Identified
None Noted
Not Applicable
None Noted
None Noted
Not Applicable
Not Applicable
None Noted
None Noted
Not Applicable
Not Applicable
Not Applicable
None Noted
The District was in substantial 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 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal
Corporations.
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 financial 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 entity's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
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.
This report is intended solely for the information and use of the Deschutes County Commissioners and
management of Deschutes County 9-1-1 County Service District and the Oregon Secretary of State and is
not intended to be and should not be used by anyone other than these parties.
For Eide Bailly LLP
Boise Idaho
January 15, 2021
45