HomeMy WebLinkAbout911 Financial Statements - FINAL
1
Financial Statements
For the Fiscal Year Ended June 30, 2022
Deschutes County 9-1-1 County
Service District
A Component Unit of Deschutes County, Oregon
Prepared by:
Deschutes County Finance Department
Robert Tintle - Chief Financial Officer
Jana Cain, CPA - Accounting Manager
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Table of Contents
June 30, 2022
INTRODUCTORY SECTION
3 List of Elected and Appointed Officials
FINANCIAL SECTION
4 Report of Independent Auditors
8 Management’s Discussion and Analysis
Financial Statements
13 Statement of Net Position
15 Statement of Activities
16 Balance Sheet – Governmental Funds – General Fund
17 Reconciliation of Governmental Funds Balance Sheet for the General Fund to the Statement of Net
Position
18 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund
19 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of General
Fund to the Statement of Activities
20 Notes to Financial Statements
Required Supplementary Information
39 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General
Fund
40 Schedule of Proportionate Share of the Net Pension Liability (Asset)
41 Schedule of Employer Contributions
42 Schedule of Changes in Total OPEB Liability
43 Notes to Required Supplementary Information
Other Supplementary Information
45 Schedule of Property Tax Transactions
AUDIT COMMENTS AND GOVERNMENT AUDITING STANDARDS SECTIONS
Government Auditing Standards
46 Report of Independent Auditors 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
Audit Comments
48 Audit Comments and Disclosures Required by State Regulations
49 Report of Independent Auditors Required by Oregon State Regulations
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List of Elected and Appointed Officials
As of June 30, 2022
ELECTED OFFICIALS
COUNTY COMMISSIONERS
Patti Adair
Philip Chang
Anthony DeBone
ASSESSOR
Scot Langton
DISTRICT ATTORNEY
John Hummel
SHERIFF
Shane Nelson
TREASURER (Interim Appointed)
Wayne Lowry
COUNTY CLERK
Steve Dennison
JUSTICE COURT
Charles Fadeley
APPOINTED OFFICIALS
County Administrator – Nick LeLack
County Counsel – David Doyle
Chief Financial Officer (Interim) – Wayne Lowry
County Internal Auditor – David Givans
Administrative Offices
1300 NW Wall Street, Suite 200
Bend, Oregon 97703
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Report of Independent Auditors
Deschutes County Commissioners
Deschutes County 9-1-1 County Service District
(A Component Unit of Deschutes County, Oregon)
Bend, Oregon
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities and the major fund of the
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, 2022, and the related notes to the financial
statements, which collectively comprise the District’s basic financial statements as listed in the table
of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities and the major fund of the
District, as of June 30, 2022, 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.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in Government
Auditing Standards (Government Auditing Standards), issued by the Comptroller General of the
United States. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the District and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Financial Reporting Entity
As discussed in Note 1, the financial statements present only the District and do not purport to, and
do not, present fairly the financial position of Deschutes County, Oregon as of June 30, 2022, or the
changes in its financial position for the year then ended in accordance with accounting principles
generally accepted in the United States of America. Our opinion is not modified with respect to this
matter.
Responsibilities of Management 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, and for 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.
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Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS
and Government Auditing Standards will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
x Exercise professional judgment and maintain professional skepticism throughout the audit.
x Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements.
x Obtain an understanding of internal control relevant to the audit 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 District's internal control. Accordingly, no such opinion
is expressed.
x Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control—related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, schedule of revenues, expenditures, and changes in fund
balance – budget and actual – General Fund (budgetary comparison) schedule of proportionate
share of the net pension liability (asset), schedule of employer contributions, schedule changes in
total OPEB liability, and notes to required supplementary information, as listed in the table of
contents, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, 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.
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We have applied certain limited procedures to the management’s discussion and analysis 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 the information 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 comparison 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. The budgetary
comparison information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, isncluding 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 comparison information is fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District's basic financial statements. The schedule of property tax
transactions, as listed in the table of contents, is presented for purposes of additional analysis and is
not a required part of the basic financial statements. Such 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. The 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 schedule of property tax
transactions is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Information
Management is responsible for the other information included in the financial statements. The other
information comprises the introductory section but does not include the basic financial statements
and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the
other information, and we do not express an opinion or any form assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 22, 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.
Other Reporting Required by Minimum Standards for Audits of Oregon Municipal
Corporations
In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have
also issued our report dated December 22, 2022, on our consideration of the District’s compliance
with certain provisions of laws, regulations, contracts, and grant agreements, including the 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. 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.
Amanda McCleary-Moore, Partner
For Moss Adams LLP
Eugene, Oregon
December 22, 2022
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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, 2022
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, 2022.
Financial Highlights
x 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, 2022, by $11,939,397. Of this amount,
$5,340,897 is unrestricted.
x Total net position increased by $444,955, from June 30, 2021.
x As of June 30, 2022, Deschutes County 9-1-1 County Service District's governmental funds reported a
combined ending fund balance of $12,338,159
x As of June 30, 2022, the unassigned fund balance in the General Fund was $12,338,159, or 99% of total
General Fund FY 2022 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, 2022. 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.
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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, 2022
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, 2022.
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.
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.
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 $11,939,397 at June 30, 2022.
Approximately 55%, or $6,598,500, 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.
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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, 2022
The remaining 45%, or $5,340,897, 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 $444,955 during the fiscal year ended June 30, 2022.
A comparison of the summarized government-wide statements to the prior year is as follows:
June 30, 2022 June 30, 2021 Change
Assets
Current and other assets 12,619,897$ 11,359,650$ 1,260,247$
Capital assets 6,990,534 7,570,985 (580,451)
Total assets 19,610,431 18,930,635 679,796
Deferred Outflows of Resources 3,251,644 3,034,445 217,199
Liabilities
Current liabilities 70,734 15,981 54,753
Noncurrent liabilities 7,188,818 10,195,317 (3,006,499)
Total liabilities 7,259,552 10,211,298 (2,951,746)
Deferred Inflows of Resources 3,663,126 259,341 3,403,785
Net Position
Investment in capital assets 6,598,500 7,570,985 (972,485)
Unrestricted 5,340,897 3,923,457 1,417,440
Total net position 11,939,397$ 11,494,442$ 444,955$
Statements of Net Position
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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, 2022
Governmental Activities
Governmental activities, the only type of activity of Deschutes County 9-1-1 County Service District, increased
net position by $444,955 during the Fiscal Year ended June 30, 2022.
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, 2022, $12,338,159 is the reported combined ending fund balance for Deschutes County 9-1-1
County Service District's governmental funds, an increase of $1,626,331 from June 30, 2021. This increase is due
primarily to lower than expected expenditures and partially due to higher than anticipated property tax collections
and charges for services. The unassigned fund balance as of June 30, 2022, for the General Fund is 113% of total
General Fund Fiscal Year 2022 expenditures.
Year Ended Year Ended
June 30, 2022 June 30, 2021 Change
Program revenues
Charges for services 2,371,686$ 2,539,819$ (168,133)$
General revenues
Property taxes 10,028,821 9,512,249 516,572
Investment earnings (losses)(298,842) 30,027 (328,869)
Total revenues 12,101,665 12,082,095 19,570
Expenses
Public safety 11,656,710 12,427,891 (771,181)
Change in Net Position 444,955 (345,796) 790,751
Net Position, Beginning of Year 11,494,442 11,840,238 (345,796)
Net Position, End of Year 11,939,397$ 11,494,442$ 444,955$
Statements of Activities
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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, 2022
General Fund Budgetary Highlights
Estimated revenues exceeded General Fund actual revenues by $872,755. Property taxes were $113,808 in excess
of budget, due to conservative budgeting practices in the estimated taxable assessed value growth rate. The
amount received for services was $68,521 less than estimated, and the amount received for intergovernmental
revenue was $853,795 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, 2022, is $6,598,500, net of accumulated depreciation and amortization. This investment in capital assets
includes equipment, vehicles, intangibles and construction in progress on an upgrade to its Computer Aided
Dispatch (CAD), communication systems and lease assets.
Additional information on Deschutes County 9-1-1 County Service District's depreciable capital assets is included
in Note 3. Information about amortizable lease assets is included in Note 4.
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
x 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.
x The District's Assessed Valuation of Taxable Property increased from fiscal year 2021 to fiscal year 2022
by 5.5% to approximately $28.9 billion.
Request for Information
This financial report is designed to provide a general overview to those parties interested in Deschutes County
9-1-1 County Service District's finances. Questions concerning any of the information provided in this report or
requests for additional information should be addressed to Deschutes County Finance Department, 1300 NW Wall
Street, Suite 200, Bend, Oregon 97703.
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See Notes to Financial Statements
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Statement of Net Position
June 30, 2022
Primary
Government -
Governmental
Activities
Assets
Current Assets
Cash and investments 11,919,964$
Property taxes receivable 153,850
Accounts receivable 474,745
Prepaid expense 71,339
Total current assets 12,619,897
Noncurrent Assets
Construction in process 274,324
Land improvements 254,783
Equipment and vehicles 10,288,972
Intangible assets 2,881,889
Accumulated depreciation (7,095,200)
Lease assets, net of accumulated amortization 385,766
Total capital assets 6,990,534
Total assets 19,610,431
Deferred Outflows of Resources
Net pension liability:
Differences between expected and actual experience 395,404
Changes in assumptions or other inputs 1,057,421
Changes in proportionate share 282,623
Contributions subsequent to the measurement date 785,809
Differences between employer contribution and employer's
proportionate share of system contributions 461,059
Total OPEB liability:
Differences between expected and actual experience 136,128
Changes in assumptions or other inputs 133,200
Total deferred outflows of resources 3,251,644
Total Assets and Deferred Outflows of Resources 22,862,075
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See Notes to Financial Statements
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Statement of Net Position
June 30, 2022
Primary
Government -
Governmental
Activities
Liabilities
Current liabilities - due within one year
Accounts payable 70,734
Compensated leave 729,926
Noncurrent liabilities - due in more than one year
Compensated leave 22,576
Lease payable 392,034
Net pension liability 4,224,106
Total OPEB liability 1,820,176
Total liabilities 7,259,552
Deferred Inflows of Resources
Net pension liability:
Changes in proportionate share 105,235
Net difference between projected and actual earnings on investments 3,127,073
Changes between employer's contributions and proportionate share of contributions 65,115
Changes in assumptions or other inputs 11,117
Total OPEB liability:
Differences between expected and actual experience 146,719
Changes in assumptions or other inputs 207,867
Total deferred inflows of resources 3,663,126
Total Liabilities and Deferred Inflows of Resources 10,922,678
Net Position
Investment in capital assets 6,598,500
Unrestricted 5,340,897
Total net position 11,939,397$
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See Notes to Financial Statements
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Statement of Activities
Fiscal Year Ended June 30, 2022
Primary
Government -
Governmental
Activities
Expenses
Public safety 11,656,710$
Program Revenues
Charges for services 2,371,686
Net program expenses 9,285,024
General Revenues
Property taxes levied for general purposes 10,028,821
Earnings (losses) on investments (298,842)
Total general revenues 9,729,979
Change in Net Position 444,955
Net Position, Beginning of Year 11,494,442
Net Position, End of Year 11,939,397$
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See Notes to Financial Statements
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Balance Sheet – Governmental Funds - General Fund
June 30, 2022
Assets
Cash and investments 11,919,964$
Property taxes receivable 153,850
Accounts receivable 474,745
Total assets 12,548,558$
Liabilities
Accounts payable 70,734$
Deferred Inflows of Resources
Unavailable revenue - property taxes 139,665
Fund Balance
Unassigned 12,338,159
Total fund balance 12,338,159
Total liabilities, deferred inflows of resources and f und balance 12,548,558$
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See Notes to Financial Statements
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Reconciliation of Governmental Funds Balance Sheet for the General Fund to the Statement of Net Position
June 30, 2022
Fund Balance for Governmental Fund 12,338,159$
Amounts reported for governmental activities in the Statement of Net Position are different because:
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. 139,665
Prepaid expenses are not financial resources and, therefore, are not reported
in the fund.71,339
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported on the Balance Sheet. 6,604,768
Lease assets are not financial resources and therefore are not reported in the governmental funds. 385,766
Deferred outflows of resources
Differences between expected and actual experience - pension liability 395,404
Change in assumptions and other inputs - pension liability 1,057,421
Changes in proportionate share - pension liability 282,623
Contributions to the pension plan subsequent to measurement date - pension liability 785,809
Differences between employer contribution and employer's
proportionate share of system contributions - pension liability 461,059
Differences between expected and actual experience - OPEB liability 136,128
Change in assumptions and other inputs - OPEB liability 133,200
Compensated absences are reported as expenditures in the period paid and,
therefore, are not reported as obligations on the Balance Sheet. (752,502)
Lease payable is not recorded in the governmental funds, but rather is recognized as a liability in
the Statement of Net Position. (392,034)
Net pension liability is not due and payable in the current period and, therefore,
is not reported on the Balance Sheet. (4,224,106)
Other post-employment benefits are not due and payable in the current period
and, therefore, are not reported on the Balance Sheet. (1,820,176)
Deferred inflows of resources
Changes in proportionate share - pension liability (105,235)
Net difference between projected and actual earnings on
investments - pension liability (3,127,073)
Changes between employer contributions
and proportionate share of contributions - pension liability (65,115)
Change in assumptions and other inputs - pension liability (11,117)
Differences between expected and actual experience - OPEB liability (146,719)
Change in assumptions and other inputs - OPEB liability (207,867)
Net Position of Governmental Activities 11,939,397$
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See Notes to Financial Statements
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Statement of Revenues, Expenditures and Changes in Fund Balance – General Fund
Fiscal Year Ended June 30, 2022
Revenues
Property taxes 10,032,387$
Investment earnings (losses)(298,842)
Charges for services 568,797
Intergovernmental revenue 2,220,889
Total revenues 12,523,231
Expenditures
Public safety 10,378,076
Capital outlay 518,824
Total expenditures 10,896,900
Net Change in Fund Balance 1,626,331
Fund Balance, Beginning of Year 10,711,828
Fund Balance, End of Year 12,338,159$
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See Notes to Financial Statements
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 General Fund to the Statement of Activities
Fiscal Year Ended June 30, 2022
Net Change in Fund Balance - Total Governmental Fund 1,626,331$
Amounts reported for governmental activities in the Statement of Activities are different because:
Some expenses reported in the Statement of Activities (e.g. the change in prepaid expenses,
accrued compensated absences and total OPEB liability) do not require the use of
current financial resources and, therefore, are not reported as expenditures. 94,530
Accounting for the District's defined benefit cost-sharing pension plan.
Contributions to pension plan made subsequent to measurement date 39,411
Pension expense 78,734
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 298,624
Depreciation (1,264,841)
Governmental funds report lease payable as expenditures. However, in the Statement of
Activities, the cost of those assets is allocated over their estimated useful lives and reported
as amortization expense. This is the amount by which amortization exceeded lease financing. (6,268)
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. (421,566)
Total of reconciling items (1,181,376)
Changes in Net Position of Governmental Activities 444,955$
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
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.
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
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 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:
x The organization is legally separate (can sue and be sued in its own name).
x The District holds the corporate powers of the organization.
x The District appoints a voting majority of the organization's board.
x The District is able to impose its will on the organization.
x The organization has the potential to impose a financial benefit/burden on the District.
x 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.
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 District’s average daily balance in relation to the total investment
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.
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
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.
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:
Lease Assets
Lease assets are assets which the District leases for a term of more than one year. The value of leases is
determined by the net present value of the leases at the County’s incremental borrowing rate at the time of the
lease agreement, amortized over the term of the agreement.
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 assets 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.
Years
10 - 15
5
Asset
Land improvements
Equipment, vehicles and intangibles
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
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 assets 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.
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 FY 2022 tax levy was $10,298,825.
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 unavailable revenue on the modified accrual basis of accounting since they are not deemed available
to finance operations of the current period.
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
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.
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 2022 is immaterial, no additional disclosure has been made.
Note 2 - Cash and Investments
As of June 30, 2022, the District had a deposit of $11,919,964 with the Deschutes County Treasurer. All of the
District's deposits were adequately insured or collateralized by securities held by the pledging financial institution
in the financial institution’s name during the year.
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Note 3 - Capital Assets
Capital asset activity for the fiscal year ended June 30, 2022, is as follows:
Note 4 - Lease Assets
Lease asset activity for the fiscal year ended June 30, 2022, is as follows:
Balance Balance
June 30, 2021 Increases Decreases June 30, 2022
Construction in progress 99,843$ 174,481$ -$ 274,324$
Land improvements 254,783 - - 254,783
Software 2,881,889 - - 2,881,889
Equipment and vehicles 11,544,640 124,143 (1,379,811) 10,288,972
Total 14,781,155 298,624 (1,379,811) 13,699,968
Less accumulated depreciation
Land improvements (118,293) (18,199) - (136,492)
Software (1,964,829) (254,208) - (2,219,037)
Equipment (5,127,048) (992,434) 1,379,811 (4,739,671)
Total accumulated
depreciation (7,210,170) (1,264,841) 1,379,811 (7,095,200)
7,570,985$ (966,217)$ -$ 6,604,768$
Balance
July 1, 2021 Additions Reductions
Balance
June 30, 2022
Governmental Activities:
Leased assets:
Equipment 9,957$ -$ -$ 9,957$
Infrastructure 476,111 - - 476,111
Land 12,908 - - 12,908
Total leased assets 498,976 - - 498,976
Less accumulated amortization for:
Equipment - (3,871) - (3,871)
Infrastructure - (108,812) - (108,812)
Land - (527) - (527)
Total accumlated amortization - (113,210) - (113,210)
Total leased assets being amortized, net 498,976 (113,210) - 385,766
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Note 5 - 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.oregon.gov/pers/EMP/Pages/Actuarial-Financial-Information.aspx
Benefits Provided Under the Programs
Chapter 238-Tier One and Tier Two Chapter 238A-OPSRP-DB
Pension
Benefits
The OPERS retirement allowance is payable
monthly for life. The allowance may be selected
from 13 retirement benefit options that are
actuarially equivalent to the base benefit.
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. Monthly
payments must be a minimum of $200 per month
or the member will receive a lump-sum payment
of the actuarial equivalent of benefits to which he
or she is entitled.
Under Senate Bill 1049, passed during the 2019
legislative session, the salary included in the
determination of final average salary will be
limited for all members beginning in 2021. The
limit will be equal to $197,730 in 2021, and will
be indexed with inflation in later years.
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.
Under Senate Bill 1049, passed during the 2019
legislative session, the salary included in the
determination of final average salary will be limited
for all members beginning in 2021. The limit will be
equal to $197,730 in 2021, and will be indexed with
inflation in later years.
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.
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Chapter 238-Tier One and Tier Two Chapter 238A-OPSRP-DB
Disability
Benefits
A member with 10 or more years of creditable
service who becomes disabled from other than
duty-connected causes may receive a non-duty
disability benefit. A disability resulting from a
job-incurred injury or illness qualifies a member
(including OPERS judge members) for 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.
A member who has accrued 10 or more years of
retirement credits before the member becomes disabled
or a member who becomes disabled due to job-related
injury shall receive a disability benefit of 45 percent of
the member’s salary determined as the last full month
of employment before the disability occurred.
Benefit
Changes after
Retirement
Members may choose to continue participation in
a variable equities investment account after
retiring and may experience annual benefit
fluctuations due to changes in the market value of
equity investments.
No ability to change.
Cost of
Living
Adjustments
Under ORS 238.360 monthly benefits are
adjusted annually through cost-of-living changes
(COLA). The cap on the COLA in Fiscal Year
2022 and beyond will vary based on the amount
of the annual benefit.
Under ORS 238A.210 monthly benefits are adjusted
annually through cost-of-living changes. The cap on
the COLA in Fiscal Year 2022 and beyond will vary
based on the amount of the 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 (RHIA). 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, 2019 actuarial valuation, which
became effective July 1, 2021. 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, 2022 were $785,809, excluding amounts to fund employer specific
liabilities, or employer specific side-accounts. The rates, presented as a percentage of covered payroll, for the
County in effect for the fiscal year ended June 30, 2022 were:
Chapter 238 - Tier One and Tier Two Chapter 238A - OPSRP-DB
General Service 20.73% 17.22%
Police and Fire 27.11% 21.58%
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related
to Pensions
At June 30, 2022, the County reported a liability of $4,224,106 for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2021, and the total pension liability used to
calculate the net pension liability was determined by an actuarial valuation as of December 31, 2019. The
County’s proportion of the net pension liability was based on the County’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 Costs: 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.
Unfunded Actuarial Liability Rate (UAL): If system assets are less than the actuarial liability, a 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 0.667%, which is an increase of
3.98% from its proportion presented on June 30, 2021. The County’s allocation to the District is 5.295%, a
decrease of 0.02%, and the District’s share of OPERS is .035% which is an increase of 0.02% from the prior year.
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
For the year ended June 30, 2022, the District recognized a pension expense of $775,642. At June 30, 2022, the
District reports deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources.
The District’s contributions made subsequent to the measurement date will be recognized in the District’s pension
expense in the following year. The net amount of the District’s remaining deferred outflows of resources and
deferred inflows of resources that will be recognized in the District’s pension expense in the subsequent five years
in the aggregate are shown in the table below.
Actuarial Assumptions
The employer contribution rates effective July 1, 2021, through June 30, 2023, were set using the entry age
normal actuarial cost method. For the Tier One / Tier Two component of the OPERS Defined Benefit Plan, this
method produced an employer contribution rate consisting of (1) an amount for normal cost (the estimated
amount necessary to finance benefits earned by the employees during the current service year), and (2) an amount
for the amortization of unfunded actuarial accrued liabilities, which are being amortized over a fixed period with
new unfunded actuarial accrued liabilities being amortized over 22 years.
For the OPSRP Pension Program component of the PERS Defined Benefit Plan, this method produced an
employer contribution rate consisting of (a) an amount for the normal cost (the estimated amount necessary to
finance benefits earned by the employees during the current service year), (b) an actuarially determined amount
for funding a disability benefit component, and (c) an amount for the amortization of unfunded actuarially accrued
liabilities, which are being amortized over a fixed period with new unfunded actuarially accrued liabilities being
amortized over 16 years.
Deferred Outflow Deferred Inflow
of Resources of Resources
Net difference between projected and actual earnings on investments -$ 3,127,073$
Differences between expected and actual experience 395,404 -
Changes in proportionate share 282,623 105,235
Changes of assumptions or other inputs 1,057,421 11,117
Changes between employer's contributions and proportionate
share of contributions - 65,115
Contributions subsequent to measurement date 785,809 -
Differences between employer contribution and employer's
proportionate share of system contributions 461,059 -
Total 2,982,316$ 3,308,540$
Amounts
Subsequent fiscal years Reported
2022 - 2023 (103,193)$
2023 - 2024 (143,046)
2024 - 2025 (293,187)
2025 - 2026 (683,859)
2026 - 2027 111,252
Total (1,112,033)$
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Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
A summary of the economic assumptions used for the December 31, 2019 actuarial valuation are shown below:
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 experience study which reviewed experience for the four-year period
ended December 31, 2018.
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.
Valuation Date December 31, 2019
Measurement Date June 30, 2021
Experience Study Report 2018, published July 24, 2019
Actuarial assumptions:
Actuarial cost method Entry Age Normal
Inflation rate 2.40 percent
Long-term expected rate of return 6.90 percent
Discount rate 6.90 percent
Projected salary increases 3.40 percent
Cost of living adjustments (COLA) Blend of 2.00% COLA and graded COLA (1.25%/0.15%) in
accordance with Moro Decision; blend based on service
Mortality Healthy retirees and beneficiaries:
Pub-2010 Healthy Retiree, sex distinct, generational with
Unisex,
Social Security Data Scale, with job category adjustments and
set-backs as described in the valuation.
Active members:
Pub-2010 Employee, sex distinct, generational with Unisex,
Social Security Data Scale, with job category adjustments and
set-backs as described in the valuation.
Disabled retirees:
Pub-2010 Disable Retiree, sex distinct, generational with
Unisex, Social Security Data Scale, with job category
adjustments and set-backs as described in the valuation.
-30-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
The target allocation and best estimates of arithmetic real rates of return for each major class are summarized in
the following table:
*Based on the OIC Statement of Investment Objectives and Policy Framework for the Oregon Public Employees Retirement
Fund, revised as of June 2, 2021.
Discount Rate
The discount rate used to measure the total pension liability was 6.90 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.
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 6.90 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 (5.90 percent) or 1-percentage point
higher (7.90 percent) than the current rate:
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.
Asset Class
Target
Allocation *
Rebalancing
Rang e %
Expected Annual
Policy Return %
Public Equity 32.50% 27.5 – 37.5 7.30%
Private Equity 17.50% 14.0 – 21.0 9.20%
Total Equity 50.00% 45.0 – 55.0
Fixed Income 20.00% 15.0 – 25.0 2.80%
Risk Parity 2.50% 0.0 – 2.5 6.30%
Real Estate 12.50% 9.5 – 15.5 7.00%
Alternatives 15.00% 7.5 – 17.5 7.00%
Total Fund 100.00% 6.90%
1% Decrease
(5.90%)
Current
Discount Rate
(6.90%)
1% Increase
(7.90%)
Employers' Net Pension Liability
Employer-Specific 8,295,134$ 4,224,106$ 818,133$
-31-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Note 6 - Other Post-Employment Benefits
The District participates in two OPEB plans to provide certain healthcare benefits to retirees. The first is a multi-
employer cost sharing defined benefit plan administered by the Oregon Public Employees Retirement System
known as the Retirement Health Insurance Account (RHIA). The second is a single employer defined benefit
postemployment healthcare plan administered by the District known as the County Plan.
OPEB Activity and Balances for the Year Ended June 30, 2022 (RHIA & County Plan)
Oregon Public Employees Retirement System — Retirement Health Insurance Account (RHIA)
Plan Description
As a member of Oregon Public Employees Retirement System (OPERS) the County 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 $60 per month) toward the cost of Medicare companion health insurance premiums of eligible retirees.
Oregon Revised Statute (ORS) 238.420 established this trust fund. Authority to establish and amend the benefit
provisions of RHIA reside with the Oregon Legislature. The Plan is closed to new entrants hired on or after
August 29, 2003. OPERS issues a publicly available financial report that includes financial statements and
required supplementary information.
That report may be obtained by writing to Oregon Public Employees Retirement System, PO Box 23700, Tigard,
OR 97281-3700. The reports and other related schedules including plan assumptions, methods and plan
provisions may also be found on the PERS website at https://www.oregon.gov/pers/EMP/Pages/GASB.aspx.
RHIA County Plan Total
Total OPEB Liability -$ 1,820,176$ 1,820,176$
Net OPEB Asset 92,305 - 92,305
Deferred Outflows
Contributions subsequent to the measurement date 578 - 578
Changes in proportionate share 5,124 - 5,124
Differences between expected and actual experience - 136,128 136,128
Changes of assumption or other inputs 1,816 133,200 135,016
Deferred Outflows - Total 7,519 269,329 276,847
Deferred Inflows
Net difference between projected and actual
earnings on investments 21,936 - 21,936
Changes in proportionate share 31 - 31
Differences between expected and actual experience 2,568 146,719 149,287
Changes of assumption or other inputs 1,373 207,867 209,240
Deferred Inflows - Total 25,909 354,586 380,495
OPEB (Income) Expenses (11,585) 136,472 124,887
Category
-32-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Contributions
Participating public employers are contractually required to contribute to RHIA at a rate assessed each biennium
by OPERS. For FY 2021, 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 (service cost) and the amortization of
any unfunded accrued liabilities of the plan. 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 District's contributions to RHIA were consistent with
the net-retiree healthcare rate as charged by OPERS. The District paid $578 for RHIA during fiscal year 2022.
Actuarial methods and assumptions for the RHIA plan mirror those of the PERS retirement system itself and can
be found in Note 5 – Participation in Public Employees Retirement System. Healthcare cost trends are not
applicable to this plan as the benefits are a fixed dollar amount per month.
As the County’s share of the RHIA plan for FY 2021 is .53423581% and the County’s allocation to the District is
5.03%. The proportionate share for each employer participating in the Plan was determined by the actuaries based
upon each employer’s contribution to the RHIA program during the measurement period. The District’s
proportionate share declined to .02687956% from the prior measurement period.
The following presents the District’s proportionate share of the net OPEB liability (asset) for the RHIA calculated
using the discount rate of 6.90 percent, as well as what the District’s proportionate share of the net OPEB liability
(asset) would be if it were calculated using a discount rate that is 1-percentage point lower (5.90 percent) or 1-
percentage point higher (7.90 percent) than the current rate:
The RHIA plan assets are included in the PERS retirement system cash management efforts. Information
related to the PERS Plan assets investment allocations are included in Note 5 – Participation in Public
Employees Retirement System included in these financial statements.
The County’s contributions made subsequent to the measurement date will be recognized in the County’s
OPEB expense in the following year. The net amount of the County’s share of the RHIA remaining deferred
outflows of resources and deferred inflows of resources that will be recognized in the County’s OPEB expense
in the subsequent four years in the aggregate are shown in the table below.
1% Decrease Current Discount Rate 1% Increase
(6.20%) (7.20%) (8.20%)
(81,630)$ (92,305)$ (101,423)$
Proportionate share of net RHIA
OPEB liability (asset)
Subsequent
Fiscal Years
FY 2023 (4,056)$
FY 2024 (2,975)
FY 2025 (5,008)
FY 2026 (6,929)
Total (18,969)$
(prior to post-measurement date contributions)
Deferred Outflow/(Inflow) of Resources
-33-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Deschutes County Retiree Health Plan
Plan Description
The District participates in Deschutes County's single-employer defined benefit postemployment healthcare plan
that provides medical benefits to eligible retired employees of Deschutes County and Deschutes County 9-1-1
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 County 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 County with more than fifteen (15) years and less than thirty (30) years of fulltime
service are eligible to receive a County contribution towards their monthly insurance premiums until age sixty-
five (65) or until eligible for Medicare, in accordance with a schedule recommended by the Employee Benefit
Advisory Committee (EBAC) and approved by the Board of County Commissioners. The schedule of retiree
premiums and County contributions is shown below for calendar year 2022.
Active Employee
Monthly Premiums:Standard Plan
High Deductible
Plan Dental Plan
Composite Rate 1,462.13$ 890.78$ 162.44$
*Opt-out stipend is $125 to employee per month.
30+ Years of 1.0 FTE Service:
Retiree Monthly
Premiums (dental):Standard Plan Dental Plan
Retiree Only 891.00$ 66.00$
Retiree + Spouse 1,783.00$ 133.00$
Retiree + Children 1,559.00$ 16.00$
Retiree + Family 2,451.00$ 182.00$
<30 Years of Service:
Retiree Monthly
Premiums:Standard Plan
High Deductible
Plan Dental Plan
Years of
Service:
County Contribution
per years of service:
Retiree Only 891.00$ 704.00$ 66.00$ 0-14 -$
Retiree + Spouse 1,783.00$ 1,395.00$ 133.00$ 15-19 202.00$
Retiree + Children 1,559.00$ 1,221.00$ 16.00$ 20-24 406.00$
Retiree + Family 2,451.00$ 1,918.00$ 182.00$ 25-29 608.00$
COBRA Monthly
Premiums:Standard Plan
High Deductible
Plan Dental Plan
Employee Only 891.00$ 704.00$ 66.00$
Employee + Spouse 1,783.00$ 1,395.00$ 133.00$
Employee + Children 1,559.00$ 1,221.00$ 16.00$
Employee + Family 2,451.00$ 1,918.00$ 182.00$
30+ Year Retiree cost share is
$85 of Medical Plan and $5 of
Dental Plan.
COBRA participant pays 100%
of premium. 2% Admin Fee is
charged in addition to rates.
Deschutes County Employee Benefit Plan
Rates for January 1, 2022 - December 31, 2022
Rates Premium Cost Sharing
Employee cost share is $85 of
Medical Plan and $5 of Dental
Plan.
-34-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
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, 2021.
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 an assumed discount rate of 2.16%; an assumed inflation rate of 2.5% for all future years; 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. The 2.16% discount rate
assumption is the June 30, 2022 rate in the 20-Year General Obligation Municipal Bond Index published by Bond
Buyer. 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, 2018 actuarial valuation of the
Oregon Public Employees Retirement System as referenced in the PERS footnote 4.C.
The actuarial cost method used in the valuation of this plan is the Entry Age Normal Method. 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 sum of these individual service costs is the Plan’s Service Cost for the
valuation year. 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.
-35-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Changes in Total OPEB Liability
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.
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.
Category District Plan
Total OPEB liability - beginning - 06/30/2021 1,838,708$
Changes for the year
Service cost 122,384
Interest 36,547
Changes in assumptions or other inputs -
Benefit payments (177,463)
Net change in total OPEB liability (18,532)
Total OPEB liability - ending - 06/30/2022 1,820,176$
1% Decrease Current Discount 1% Increase
(1.16%)Rate (2.16%) (3.16%)
Total OPEB Liability on June 30, 2022 1,997,713$ 1,820,176$ 1,656,012$
Current Health Care
1% Decrease Trend Rates 1% Increase
Total OPEB Liability on June 30, 2022 1,571,212$ 1,820,176$ 2,120,811$
Deferred Outflow/(Inflow) of Resources
Subsequent fiscal years (prior to post-measurement date contributions)
2022 - 2023 (22,459)$
2023 - 2024 (22,459)
2024 - 2025 (22,459)
2025 - 2026 (22,459)
2065 - 2027 4,578
Total (85,258)$
-36-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2022
Note 7 - 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.
Note 8 - 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:
Note 9 – Adoption of New Standard
As of July 1, 2021, the District adopted GASB Statement No. 87, Leases (GASB 87). GASB 87 requires
recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and
recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It
establishes a single model for lease accounting based on the foundational principle that leases are financings of
the right to use an underlying asset. Under GASB 87, a lessee is required to recognize a lease liability and an
intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of
resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.
Lease where the maximum possible lease term is one year or less continue to be reported as operating leases.
Leases that transfer ownership and contain no cancellation provisions are reported by the lessee and sale of an
asset by the lessor. There was no impact to beginning net position or fund balance with the implementation of
GASB 87.
District as Lessee
As a result of implementing GASB 87, the District has recognized an increase of $498,976 in both lease assets
and lease payable as of July 1, 2021. The adoption of the new standard has no impact on the beginning net
position of the District.
Fiscal Year Ending June 30,
2023 175,895$
2024 177,130
2025 173,068
2026 173,952
2027 169,838
2028 169,453
1,039,336$ Total
-37-
Required Supplementary Information
For the Fiscal Year Ended June 30, 2022
Deschutes County 9-1-1 County
Service District
A Component Unit of Deschutes County, Oregon
-38-
See Notes to Required Supplementary Information
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
Fiscal Year Ended June 30, 2022
-39-
See Notes to Required Supplementary Information
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 7 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.
2016 2017 2018 2019 2020 2021 2022
Proportionate of net
pension liability (asset) 0.03% 0.03% 0.03% 0.03% 0.04% 0.03% 0.04%
Proportionate share of the
net pension liability (asset) 1,736,619$ $ 4,723,906 $ 4,667,224 $ 5,141,779 $ 6,267,240 $ 7,558,545 $ 4,224,106
Covered payroll 2,943,341$ $ 3,208,843 $ 3,644,740 $ 4,359,939 4,343,589$ 4,387,355$ 4,710,083$
Proportionate share of the
net pension liability (asset)
as a percentage of its
covered payroll 59.00% 147.22% 128.05% 117.93% 144.29% 172.28% 89.68%
Plan fiduciary net position
as a percentage of the
total pension liability 91.88% 80.53% 83.12% 82.07% 80.23% 75.79% 87.57%
-40-
See Notes to Required Supplementary Information
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 8 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.
2015 2016 2017 2018 2019 2020 2021 2022
Contractually required contributions 225,456$ 287,456$ 319,262$ 519,614$ 519,818$ 716,449$ 746,398$ 785,809$
Contributions in relation to the
contractually required contribution 225,456 287,456 319,262 519,614 519,818 716,449 746,398 785,809
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$ 4,710,083$ 4,512,720$
Contributions as a percentage of
covered payroll 8.62% 9.72% 10.81% 11.92% 11.97% 16.33% 15.85% 17.41%
-41-
See Notes to Required Supplementary Information
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Changes in Total OPEB Liability
Last 5 Fiscal Years*
*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 1st of each fiscal year.
2018 2019 2020 2021 2022
105,011$ 77,870$ 78,267$ 126,203$ 122,384$
68,868 68,855 47,975 29,510 36,547
(292,284) (696,769) (41,660) 274,351 -
(85,419) (62,792) (59,320) (58,646) (177,463)
(203,823) (612,836) 25,262 371,418 (18,532)
2,258,688 2,054,864 1,442,028 1,467,290 1,838,708
2,054,864$ 1,442,028$ 1,467,290$ 1,838,708$ 1,820,176$
3,644,740$ 4,359,939$ 4,343,589$ 4,387,355$ 4,710,083$
Service cost
Interest
Changes in assumptions or other inputs
Benefit payments
Net change in total OPEB liability
Total OPEB liability -beginning
Total OPEB liability - endingCovered
&RYHUHGHPSOR\HHpayroll
Total OPEB liability as a percentage
of covered HPSOR\HHpayroll 56% 33% 34% 42% 39%
-42-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Notes to Required Supplementary Information
June 30, 2022
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.
-43-
Other Supplementary Information
For the Fiscal Year Ended June 30, 2022
Deschutes County 9-1-1 County
Service District
A Component Unit of Deschutes County, Oregon
-44-
Deschutes County 9-1-1 County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Property Tax Transactions
Fiscal Year Ended June 30, 2022
Beginning Taxes
Balance and Interest Receivable
2021-22 Levy Adjustments (Discounts) Collections
June 30, 2022
2021-2022 10,298,825$ (5,580)$ (270,789)$ 9,932,382$ 90,074$
2020-2021 92,916 (3,746) 2,988 57,931 34,227
2019-2020 38,637 (757) 2,455 20,885 19,450
2018-2019 19,648 (102) 3,093 17,053 5,586
2017-2018 6,735 (32) 1,277 6,075 1,905
2016-2017 1,475 (14) 340 1,011 790
2015-2016 (199) 9 264 718 (644)
2014-2015 648 11 55 138 576
2013-2014 306 (3) 11 26 288
Prior 1,723 (11) 107 221 1,598
Totals 10,460,714$ (10,225)$ (260,199)$ 10,036,440 153,850$
Adjustments for Accruals
(18,657)
14,185
Other tax distribution 419
Modified accrual basis tax revenue 10,032,387$
June 30, 2021
June 30, 2022
Tax Year
-45-
Report of Independent Auditors 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
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 the 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 major fund of the 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,
2022, and the related notes to the financial statements, which collectively comprise the District’s
basic financial statements, and have issued our report thereon dated December 22, 2022.
Report on 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 was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control 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 or significant deficiencies may exist that were not identified.
-46-
Report on 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 entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Eugene, Oregon
December 22, 2022
-47-
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, 2022
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
-48-
Report of Independent Auditors Required by Oregon State
Regulations
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 major 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, 2022, and the
related notes to the financial statements, which collectively comprise the District’s basic financial
statements, and have issued our report thereon dated December 22, 2022.
Compliance
As part of obtaining reasonable assurance about whether the District’s basic financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, including provisions of Oregon Revised Statutes (ORS)
as specified in Oregon Administrative Rules (OAR) 162-010-0000 to 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 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.
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:
x Accounting records and internal control
x Public fund deposits
x Budget
x Insurance and fidelity bonds
x Investments
x Public contracts and purchasing
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 grant
agreements, including the provisions of ORS as specified in OAR 162-010-0000 through
162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations.
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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 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 was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control 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 cons ider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. Accordingly, this communication is not suitable for any
other purpose.
This report is intended solely for the information and use of the County Commissioners and
management of the District and the Oregon Secretary of State and is not intended to be and should
not be used by anyone other than these parties
Amanda McCleary-Moore, Partner
For Moss Adams LLP
Eugene, Oregon
December 22, 2022
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