HomeMy WebLinkAboutRural Law Enforcement Distrct 2021 Final Financal Statementseidebailly.com
Financial Statements
As of and For the Year Ended June 30, 2021
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Table of Contents
June 30, 2021
Independent Auditor’s Report .................................................................................................................................... 1
Management's Discussion and Analysis .................................................................................................................... 4
Financial Statements
Statement of Net Position ...................................................................................................................................... 9
Statement of Activities ......................................................................................................................................... 10
Balance Sheet – General Fund ............................................................................................................................. 11
Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position ............................... 12
Statement of Revenues, Expenditures and Changes in Fund Balance – General Fund ....................................... 13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of
Governmental Funds to the Statement of Activities ............................................................................................ 14
Notes to Financial Statements .............................................................................................................................. 15
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund ......... 19
Other Supplementary Information
Schedule of Property Tax Transactions ............................................................................................................... 20
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................................................................................................................................................... 21
Audit Comments and Disclosures Required by State Regulations .......................................................................... 23
Independent Auditor’s Report Required by Oregon State Regulations ................................................................... 24
What inspires you, inspires us. | eidebailly.com
877 W. Main St., Ste. 800 | Boise, ID 83702-5858 | T 208.344.7150 | F 208.344.7435 | EOE
1
Independent Auditor’s Report
The Deschutes County Commissioners
Rural Law Enforcement 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 Rural Law Enforcement District (the District), a component unit of Deschutes County, Oregon, as
of and for the year ended June 30, 2021, 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
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, 2021, 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.
2
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, 2021, 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 and schedule of revenues, expenditures and changes in fund balances – budget
and actual – general fund (budgetary schedule), as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to management’s
discussion and analysis and the budgetary schedule in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on
management’s discussion and analysis or the budgetary schedule because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The budgetary schedule described above is the
responsibility of management and was derived from and 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.
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) is presented for purposes of additional analysis and is not a required part of the financial
statements.
3
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 5, 2022
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 5, 2022 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.
For Eide Bailly LLP
Boise, Idaho
January 5, 2022
4
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2021
As management of Rural Law Enforcement 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, 2021.
Financial Highlights
The assets of Rural Law Enforcement District exceeded its liabilities at June 30, 2021 by $4,060,137, all
of the net position is unrestricted.
As of June 30, 2021, Rural Law Enforcement District's governmental fund reported an ending fund
balance of $3,887,440.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Rural Law Enforcement 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 Rural Law
Enforcement District's finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of Rural Law Enforcement District's assets and
liabilities, with the difference between the two reported as Net Position. Over time, increases or decreases in Net
Position may serve as a useful indicator of whether the financial position of Rural Law Enforcement District is
improving or deteriorating.
The Statement of Activities presents information showing how Rural Law Enforcement District's Net Position
changed during the fiscal year ended June 30, 2021. Changes in Net Position are reported when the underlying
event giving rise to the change occurs, regardless of the timing of the related cash, or other financial assets, flows.
Thus, revenues and expenses are reported in this statement for some items, for example, property taxes, 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 Rural Law Enforcement District that are supported primarily by taxes and investment earnings.
The governmental activity of Rural Law Enforcement District is public safety.
The government-wide financial statements can be found on pages 9-10 of this report.
5
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2021
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. Rural Law Enforcement District, like other state and local government
entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The
Fund of Rural Law Enforcement District is classified as a governmental fund.
Governmental Funds - Governmental funds are used to account for essentially the same functions as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. A reconciliation from the Governmental
Funds Balance Sheet to the Government-wide Statement of Net Position and a reconciliation from the
Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-
wide Statement of Activities have been included in this report.
Rural Law Enforcement District reported activity in one governmental fund during the fiscal year ended June 30,
2021.
Rural Law Enforcement District adopts an annual budget for its fund. A budgetary comparison statement has been
provided to demonstrate compliance with the annual budget.
The Basic Governmental Fund Financial Statements can be found on pages 11-14 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 15-
18 of this report.
Government-Wide Financial Analysis
Net Position, at a specific point in time, serves as a useful indicator of an entity's financial position. In the case of
Rural Law Enforcement District, assets exceed liabilities by $4,060,137 at June 30, 2021. All of the Net Position
may be used to meet the District's on-going obligations to citizens and creditors.
As of June 30, 2021, Rural Law Enforcement District reports a positive balance in Net Position for the
government as a whole and for the governmental activities.
Rural Law Enforcement District's Net Position decreased by $2,534,258 during the year ended June 30, 2021.
6
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2021
A comparison of the summarized government-wide statements to the prior year is as follows:
June 30, 2021 June 30, 2020 Change
Assets
Cash and investments 3,863,866$ 6,349,706$ (2,485,840)$
Property taxes receivable 196,271 244,689 (48,418)
Total assets 4,060,137 6,594,394 (2,534,258)
Net Position
Unrestricted 4,060,137 6,594,394 (2,534,258)
Total net position 4,060,137$ 6,594,394$ (2,534,258)$
Year Ended Year Ended
June 30, 2021 June 30, 2020 Change
General Revenues
Property taxes levied for general purposes 11,428,957$ 11,031,614$ 397,343$
Earnings on investments 19,570 193,850 (174,280)
Total revenues 11,448,527 11,225,464 223,063
Expenses
Public safety 13,982,785 11,988,546 1,994,239
Changes in Net Position (2,534,258) (763,082) (1,771,176)
Net Position, Beginning of Year 6,594,394 7,357,476 (763,082)
Net Position, End of Year 4,060,137$ 6,594,394$ (2,534,258)$
Statements of Net Position
Statements of Activities
7
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2021
Governmental Activities
Governmental activities, the only activity type of Rural Law Enforcement District, decreased Net Position by
$2,534,258 during the fiscal year ended June 30, 2021. Net position decreased because tax revenues and
investment interest were less than the payment made to Deschutes County Sheriff’s Office, pursuant to an inter-
governmental agreement.
Financial Analysis of the District's Funds
Rural Law Enforcement District uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Fund - The focus of Rural Law Enforcement District's governmental fund is to provide information
on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Rural
Law Enforcement 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, 2021, $3,887,440 is the reported ending fund balance for Rural Law Enforcement District's
governmental fund.
One measure of liquidity is the relationship of the unassigned balance to the Fund’s total revenues. The fund
balance as of June 30, 2021, for the General Fund is 34% of its total General Fund Fiscal Year 2021 revenues.
The fund balance of the Rural Law Enforcement District's General Fund decreased by $2,500,398 during the
fiscal year ended June 30, 2021.
General Fund Budgetary Highlights
Actual revenues exceeded estimated revenues by $202,998. Property tax revenue exceeded the amount estimated
by $250,510. The District contracts with Deschutes County for its operational activities. The amount paid
pursuant to the contract is based on the actual cost of providing such services, $14,154,905 which is $1,471 less
than the amount appropriated.
Capital Asset and Debt Administration
Capital Assets
Rural Law Enforcement District owns no capital assets.
Long-Term Debt
Rural Law Enforcement District has no long-term debt; therefore the District has not been separately rated by any
of the bond rating agencies.
Key Economic Factors and Budgets Information for the Future
The tax rate approved by the voters will allow the District to maintain sufficient reserves to finance its operations
without needing to issue tax anticipation notes.
8
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2021
Requests for Information
This financial report is designed to provide a general overview to those parties interested in Rural Law
Enforcement District's finances. Questions concerning any of the information provided in this report or requests
for additional information should be addressed to Deschutes County Finance Department, PO Box 6005, Bend,
Oregon, 97708.
See Notes to Financial Statements 9
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Statement of Net Position
June 30, 2021
Primary
Government -
Governmental
Activities
Assets
Cash and investments 3,863,866$
Property taxes receivable 196,271
Total assets 4,060,137
Net Position
Unrestricted 4,060,137
Total net position 4,060,137$
See Notes to Financial Statements 10
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Statement of Activities
Year Ended June 30, 2021
Primary
Government -
Governmental
Activities
Expenses
Public safety 13,982,785$
Total expenses 13,982,785
General Revenues
Property taxes levied for general purposes 11,428,957
Earnings on investments 19,570
Total general revenues 11,448,527
Changes in Net Position (2,534,258)
Net Position, Beginning of Year 6,594,394
Net Position, End of Year 4,060,137$
See Notes to Financial Statements 11
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Balance Sheet – General Fund
June 30, 2021
Assets
Cash and investments 3,863,866$
Property taxes receivable 196,271
Total assets 4,060,137$
Deferred Inflow of Resources
Unavailable revenue - property taxes 172,696$
Fund Balance
Unassigned 3,887,440
Total fund balance 3,887,440
Total deferred inflow of resources and fund balance 4,060,137$
See Notes to Financial Statements 12
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position
June 30, 2021
Fund Balance for the governmental fund 3,887,440$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Some of the District's taxes will be collected after year-end, but are
not currently available resources and, therefore, are deferred in the fund.172,696
Net Position of Governmental Activities 4,060,137$
See Notes to Financial Statements 13
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Statement of Revenues, Expenditures and Changes in Fund Balance – General Fund
Year Ended June 30, 2021
Revenues
Property taxes 11,462,817$
Interest 19,570
Total revenues 11,482,387
Expenditures
Public safety 13,982,785
Total expenditures 13,982,785
Net Change in Fund Balance (2,500,398)
Fund Balance, Beginning of Year 6,387,838
Fund Balance, End of Year 3,887,440$
See Notes to Financial Statements 14
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds
to the Statement of Activities
Year Ended June 30, 2021
Net Change in Fund Balances - Total Governmental Funds (2,500,398)$
Amounts reported for governmental activities in the Statement of Activities are different because:
Property tax revenue is recognized under the modified accrual basis of accounting
only to the extent it has been collected within sixty days of year-end. On the accrual
basis Statement of Activities, such revenue is recognized regardless of when
collected.(33,859)
Change in Net Position of Governmental Activities (2,534,258)$
15
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2021
Note 1 - Organization and Summary of Significant Accounting Policies
The District
Rural Law Enforcement District (the District), a component unit of Deschutes County, Oregon, an ORS Chapter
451 municipal corporation of the State of Oregon, was approved and created by election of the Deschutes County
(the County) voters on November 7, 2006, for the purpose of providing a permanent source of funding for patrol
services in those portions of Deschutes County not served by city or special service district law enforcement
departments. The District entered into an intergovernmental agreement, April 16, 2007, with Deschutes County
whereby the County, through the Deschutes County Sheriff’s Office, is contracted to perform certain law
enforcement functions within its boundaries. The Deschutes County Board of Commissioners is the governing
body of the District.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)
report information on all of the activities of the District. 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 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 prepared using the economic resources measurement focus and the
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred. Property taxes are recognized as revenues in the year for which they are levied.
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be
available if they are collected within sixty days of the end of the current fiscal period. Revenues received after this
period, are considered unavailable. Expenditures are recorded when a liability is incurred, as under accrual
accounting.
Property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable
and available only when cash is received by the District.
16
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2021
The District reports the following governmental fund:
General Fund — The General Fund is utilized to account for the transactions of the District. Property
taxes and interest are its only sources of revenue. Expenditures are for public safety pursuant to the
agreement described in Note 1.
Budget Policy
The District meets the requirement of state law by preparing a budget for its funds. The budget is prepared on the
modified accrual basis of accounting, with some exceptions. Program activity (public safety) is the only budgetary
level of control established by resolution. The detailed budget document provides specific detailed information for
the above mentioned program. Unexpected additional resources may be added to the budget through the use of a
supplemental budget and appropriations resolution. Original and supplemental budgets may be modified by the
use of appropriation transfers between the levels of control. Appropriations lapse as of year-end.
Reporting Entity
The District's financial statements include the accounts of all District operations. The criteria for including
organizations as component units within the District's reporting entity, as set forth in GASB 61, The Financial
Reporting Entity: Omnibus, include whether:
The organization is legally separate (can sue and be sued in its own name).
The District holds the corporate powers of the organization.
The District appoints a voting majority of the organizations’ 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 a fiscal dependency by the organization on the District.
There were no specific agencies which required consideration under the criterion in the current fiscal year for
inclusion in the District's reporting entity.
Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes
County, since the District's governing board is comprised of the Deschutes County Commissioners and there is a
fiscal dependency between the District and the County.
Cash and Investments
Cash and investments are comprised of funds held by the Deschutes County Treasurer, in the Deschutes County
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.
17
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2021
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 Oregon 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, PO Box 6005, Bend, Oregon, 97708.
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 2021 fiscal year tax
levy was $11,736,454.
Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary
collecting agency. Uncollected property taxes are shown on the governmental balance sheet as receivables.
Collections within sixty days subsequent to year-end have been accrued and the remaining taxes receivable are
recorded as deferred revenue on the modified accrual basis of accounting since they are not deemed available to
finance operations of the current period.
Fund Balances
The Governmental Accounting Standards Board has issued Statement No. 54 , Fund Balance Reporting and
Governmental Fund Type Definitions (GASB 54), which 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.
18
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2021
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). Such constraint remains legally binding unless removed in the same manner.
4.Assigned fund balances classification are intended to be used by the District for specific purposes but do
not meet the criteria to be classified as restricted or committed. Assignments are made by the County
Administrator based on the County Commissioner’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.
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 2021 is immaterial, no additional disclosure has been made.
Note 2 - Cash and Investments
As of June 30, 2021, the District had a deposit of $3,863,866 with the Deschutes County Treasurer. All of the
District's deposits were adequately insured during the year.
Note 3 - Risk Management
In the agreement described in Note 1, Deschutes County covenants and agrees to defend, indemnify and hold and
save harmless the District and each of the District's officers, agents and employees, if any, from and against any
and all claims whatsoever that might arise against the District or any of its officers, agents or employees, if any,
by reason of any alleged act or failure to act or failure of Deschutes County to act.
eidebailly.com
Required Supplementary Information
As of and for the Year Ended June 30, 2021
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
19
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
Budgetary Basis
Year Ended June 30, 2021
Original
Budget
Final
Budget Actual
Variance
with Final
Budget
Revenues
Taxes - property 11,212,307$ 11,212,307$ 11,462,817$ 250,510$
Investment earnings 120,000 120,000 72,488 (47,512)
Total revenues 11,332,307 11,332,307 11,535,305 202,998
Expenditures
Current - departmental
Public safety 13,002,909 14,156,376 14,154,905 1,471
Net allocated to organizational units:
Contingency 5,851,590 4,698,123 - 4,698,123
Total expenditures 18,854,499 18,854,499 14,154,905 4,699,594
Net Change in Fund Balance (7,522,192) (7,522,192) (2,619,600) 4,902,592
Fund Balance, Beginning of Year 7,522,192 7,522,192 6,532,339 (989,853)
Fund Balance, End of Year -$ -$3,912,738 3,912,738$
Unrealized gain (loss) on investments (6,020)
Expenditure recognized on GAAP basis, not on budgetary basis (19,279)
3,887,440$
Budget Amounts
eidebailly.com
Other Supplementary Information
As of and for the Year Ended June 30, 2021
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
20
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Schedule of Property Tax Transactions
Year Ended June 30, 2021
Beginning Taxes
Balance and Interest Receivable
Tax Year 2020 Levy Adjustments (Discounts)Collections June 30, 2021
2020-2021 11,736,454$ (12,201)$ (305,064)$ 11,307,219$ 111,969$
2019-2020 140,996 (216) 7,346 101,579 46,548
2018-2019 54,674 (244)6,015 36,732 23,712
2017-2018 31,240 (272)7,152 29,617 8,503
2016-2017 11,103 (186)3,489 12,544 1,863
2015-2016 1,127 (72)658 1,965 (252)
2014-2015 1,946 (59)654 1,726 815
2013-2014 481 (5)63 148 390
Prior 3,121 (40)439 798 2,723
Totals 11,981,142$ (13,294)$ (279,248)$ 11,492,330 196,271$
Adjustments for Accruals
June 30, 2020 (38,133)
June 30, 2021 23,570
Other tax distribution (adjustments)(14,950)
Modified accrual basis tax revenue 11,462,817$
What inspires you, inspires us. | eidebailly.com
877 W. Main St., Ste. 800 | Boise, ID 83702-5858 | T 208.344.7150 | F 208.344.7435 | EOE
21
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
Rural Law Enforcement 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 Rural Law Enforcement District (the District), a component unit of
Deschutes County, Oregon, as of and for the year ended June 30, 2021, 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 5, 2022.
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. 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.
22
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 5, 2022
23
Rural Law Enforcement District
Audit Comments and Disclosures Required by State Regulations
June 30, 2021
Audit Comments and Disclosures Required by State Regulations
Oregon Administrative Rules 162-010-0000 through 162-010-0330 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.
What inspires you, inspires us. | eidebailly.com
877 W. Main St., Ste. 800 | Boise, ID 83702-5858 | T 208.344.7150 | F 208.344.7435 | EOE
24
Independent Auditor’s Report Required by Oregon State Regulations
To Deschutes County Commissioners
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
We have audited the basic financial statements of Rural Law Enforcement District (the District), a
component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2021, and have
issued our report thereon dated January 5, 2022. We conducted our audit 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:
Instances of Non-
Compliance Identified
Preface Not Applicable
Definitions Not Applicable
General Requirements None Noted
Contracts None Noted
Financial Statements None Noted
Required Supplementary Information (RSI) None Noted
Supplementary Financial Information None Noted
Schedule of Revenues, Expenditures / Expenses, and Changes in Fund None Noted
Balances / Net Position, Budget and Actual (Each Fund)
Schedule of Accountability for Independently Elected Officials Not Applicable
Other Financial or Statistical Information Not Applicable
Independent Auditor's Review of Fiscal Affairs None Noted
Accounting Records and Internal Control None Noted
Public Fund Deposits None Noted
Indebtedness Not Applicable
Budget None Noted
OAR
162-010-0000
162-010-0010
162-010-0020
162-010-0050
162-010-0200
162-010-0230
162-010-0240
162-010-0130
Section
162-010-0030
162-010-0140
162-010-0250
162-010-0260
162-010-0190
162-010-0115
162-010-0120
25
Instances of Non-
Compliance Identified
Insurance and Fidelity Bonds None Noted
Programs Funded from Outside Sources Not Applicable
Highway Funds Not Applicable
Investments None Noted
Public Contracts and Purchasing Not Applicable
State School Fund Not Applicable
Public Charter Schools Not Applicable
Other Comments and Disclosures Not Applicable
Extensions of Time to Deliver Audit Reports Not Applicable162-010-0330
162-010-0310
162-010-0320
OAR
162-010-0315
162-010-0316
162-010-0270
162-010-0280
162-010-0295
162-010-0300
Section
In connection with our testing nothing came to our attention that caused us to believe the District was not
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 Rural Law Enforcement 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 5, 2022