HomeMy WebLinkAboutDeschutes County Road Agency FY24 Issued FinancialsFinancial Statements
For the Fiscal Year Ended June 30, 2024Deschutes CountyRoad Agency
A Component Unit of Deschutes County, Oregon
Prepared by:
Deschutes County Finance Department
Robert Tintle, MPA - Chief Financial Officer
Jana Cain, CPA - Controller
2
TABLE OF CONTENTS
Introductory Section
Listing of Principal Officials ��������������������������������������������������������������������������������������������������������������������������������������������4
Financial Section
Report of Independent Auditors �����������������������������������������������������������������������������������������������������������������������������������6
Management’s Discussion and Analysis ��������������������������������������������������������������������������������������������������������������������10
Financial Statements
■Statement of Net Position ������������������������������������������������������������������������������������������������������������������������������������13
■Statement of Activities ������������������������������������������������������������������������������������������������������������������������������������������14
■Balance Sheet – Governmental Funds – General Fund �������������������������������������������������������������������������������������15
■Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund �������������������������������16
■Notes to Financial Statements �����������������������������������������������������������������������������������������������������������������������������17
Required Supplementary Information
■Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General
Fund �������������������������������������������������������������������������������������������������������������������������������������������������������������������������22
Audit Comments and Government Auditing Standards Sections
Government Auditing Standards
■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 ��������������������������������������������������������������������������������������������������������������������������������������������������24
Audit Comments
■Audit Comments and Disclosures Required by State Regulations ������������������������������������������������������������������26
■Report of Independent Auditors Required by Oregon State Regulations ������������������������������������������������������27
Financial Statements 2024
Deschutes County Road Agency
A COMPONENT UNIT OF DESCHUTES COUNTY, OREGON
INTRODUCTORY SECTION
INTRODUCTORY SECTION Financial Statements For the Fiscal Year Ended June 30, 2024
4 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Listing of Principal Officials
As of June 30, 2024
ELECTED OFFICIALS
Board оf County Commissioners
Name Position Term Expiration
Patti Adair, Chair Position 3 January 4, 2027
Anthony DeBone, Vice Chair Position 1 January 4, 2027
Philip Chang Position 2 January 6, 2025
Other Elected Officers
Name Office Term Expiration
Scot Langton County Assessor January 4, 2027
Steve Dennison County Clerk January 4, 2027
Shane Nelson County Sheriff January 6, 2025
William Kuhn County Treasurer January 4, 2027
Steve Gunnels County District Attorney January 4, 2027
Charles Fadeley Justice of the Peace January 1, 2029
APPOINTED OFFICIALS
Nick Lelack County Administrator
David Doyle County Counsel
Robert Tintle Chief Financial Officer
Elizabeth Pape County Internal Auditor
Registered Agent and Address
Robert Tintle, Chief Financial Officer
Deschutes County Administrative Offices
1300 NW Wall Street, Suite 200
Bend, Oregon 97703
Financial Statements 2024
Deschutes County Road Agency
A COMPONENT UNIT OF DESCHUTES COUNTY, OREGON
FINANCIAL SECTION
6 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Report of Independent Auditors
Deschutes County Commissioners
Deschutes County Road Agency
(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 Road Agency (the Agency), a component unit of Deschutes County, Oregon, as of
and for the year ended June 30, 2024, and the related notes to the financial statements, which
collectively comprise the Agency’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
Agency, as of June 30, 2024, 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 Agency 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 Agency and do not purport to, and
do not, present fairly the financial position of Deschutes County, Oregon as of June 30, 2024, 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 opinions are 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.
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 7
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
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
Exercise professional judgment and maintain professional skepticism throughout the audit.
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.
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 Agency's internal control. Accordingly, no such opinion is
expressed.
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.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Agency’s ability to continue as a going concern for a
reasonable period of time.
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.
8 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and schedule of revenues, expenditures, and changes in fund
balance – budget and actual – General Fund (budgetary comparison), 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. 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 management’s
discussion and analysis 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 Agency’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, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the budgetary comparison information 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 of 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report December 4,
2024, on our consideration of the Agency'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 Agency'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 Agency's internal control over financial reporting and compliance.
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 9
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 4, 2024, on our consideration of the Agency’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 4, 2024
FINANCIAL SECTION Financial Statements For the Fiscal Year Ended June 30, 2024
Management’s Discussion and Analysis
10 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
As management of Deschutes County Road Agency (the Agency), a component unit of Deschutes County,
Oregon, we offer readers of the Agency’s financial statements this narrative overview and analysis of the
financial activities of the Agency for the period ended June 30, 2024.
Financial highlights
■The assets, ending fund balance and net position of the Agency are zero, as all resources have been
used during the period�
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Agency’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 the Agency’s
finances in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the Agency’s assets and liabilities, with the difference
between the two reported as net position� Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the Agency is improving or deteriorating.
The Statement of Activities presents information showing how the Agency’s net position changed during the
period ended June 30, 2024� 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.
Each of these government-wide financial statements, Statement of Net Position and Statement of Activities,
show the functions of the Agency that are supported primarily by inter-governmental revenues (governmental
activities)� The governmental activity of the Agency is providing funding for road construction to the residents
of Deschutes County, Oregon�
The government-wide financial statements can be found on pages 13 - 14 of this report.
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 Agency, like other state and local government entities, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund
utilized by the Agency is classified as a governmental fund.
Governmental funds are used to account for the same functions as governmental activities in the government-wide
financial statements. However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s
near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements,
it is useful to compare the information presented for governmental funds with 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. Because net position
equaled fund balance at the end of the period, no reconciliation from the Governmental Fund Balance
Sheet for the General Fund to the Government-wide Statement of Net Position, or a reconciliation from the
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance for the General Fund
to the Government-wide Statement of Activities has been included in this report.
Financial Statements For the Fiscal Year Ended June 30, 2024 FINANCIAL SECTION
Deschutes County Road Agency
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 11
The Agency reported activity in one governmental fund during the year ended June 30, 2024� Information
is presented in the Governmental Fund Balance Sheet for the General Fund and in the Governmental Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund�
The Agency adopts an annual budget for its fund� A budgetary comparison statement has been provided for
this fund to demonstrate compliance with the annual budget�
The General Fund Financial Statements can be found on pages 15 - 16 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found on pages
18 - 20 of this report.
Government-wide Financial Analysis
Net position, at a specific point in time, serves as a useful indicator of an entity’s financial position. In the case
of the Agency, assets, liabilities, and net position were $0 as of June 30, 2024�
The summarized government-wide statements are as follows:
Statements of Net Position
June 30,
2024
June 30,
2023 Change
ASSETS
Total assets $ - $ - $ -
LIABILITIES
Total liabilities - - -
NET POSITION
Total net position $ - $ - $ -
Statements of Activities
Year Ended
June 30,
2024
Year Ended
June 30,
2023 Change
GENERAL REVENUES
Intergovernmental $ 652,984 $ 695,036 $ (42,052)
Total revenues 652,984 695,036 (42,052)
EXPENSES
General expenses 652,984 695,036 (42,052)
Total expenses 652,984 695,036 (42,052)
Change in net position - - -
Net position - beginning of year - - -
Net position - end of year $ - $ - $ -
FINANCIAL SECTION Financial Statements For the Fiscal Year Ended June 30, 2024
Management’s Discussion and Analysis
12 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Governmental Activities
Governmental activities did not change the Agency’s net position during the year ended June 30, 2024�
Financial Analysis of the Agency’s Funds
The Agency uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements�
Governmental Funds - The focus of the Agency’s governmental funds is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing the Agency’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 period.
As of June 30, 2024, $0 is the reported ending fund balance for the Agency’s governmental fund� As of June 30,
2024, the unassigned fund balance for the Agency’s General Fund is $0�
General Fund Budgetary highlights
The Agency received $652,984 in revenue from the U�S� Forest Service, which is $139,338 less than the $792,322
the Agency budgeted to receive�
Key Economic Factors and Budgets Information for the Future
The Agency has budgeted revenue of $672,162 for the fiscal year ending June 30, 2025.
Requests for Information
This financial report is designed to provide a general overview to those parties interested in Deschutes County
Road Agency’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�
Financial Statements For the Fiscal Year Ended June 30, 2024 FINANCIAL SECTION
Deschutes County Road Agency
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 13
The notes to financial statements are an integral part of this statement.
Statement of Net Position
June 30, 2024
Primary
Government -
Governmental
Activities
ASSETS
Total assets $ -
LIABILITIES
Total liabilities -
NET POSITION
Total net position $ -
FINANCIAL SECTION Financial Statements For the Fiscal Year Ended June 30, 2024
14 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
The notes to financial statements are an integral part of this statement.
Statement of Activities
For the Fiscal Year Ended June 30, 2024
Primary
Government -
Governmental
Activities
EXPENSES
General services $ 652,984
Total expenses 652,984
GENERAL REVENUES
Intergovernmental 652,984
Total general revenues 652,984
Change in net position -
Net position - beginning of year -
Net position - end of year $ -
Financial Statements For the Fiscal Year Ended June 30, 2024 FINANCIAL SECTION
Deschutes County Road Agency
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 15
The notes to financial statements are an integral part of this statement.
Balance Sheet – Governmental Funds – General Fund
June 30, 2024
Assets
Total assets $ -
Liabilities
Total liabilities $ -
Fund balances
Total fund balances -
Total liabilities and fund balances $ -
FINANCIAL SECTION Financial Statements For the Fiscal Year Ended June 30, 2024
16 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
The notes to financial statements are an integral part of this statement.
Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund
For the Fiscal Year Ended June 30, 2024
REVENUES
Intergovernmental $ 652,984
Total revenues 652,984
EXPENDITURES
Current
County roads 652,984
Total expenditures 652,984
Net change in fund balance -
Fund balance - beginning of year -
Fund balance - end of year $ -
Financial Statements For the Fiscal Year Ended June 30, 2024 FINANCIAL SECTION
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 17
NOTES TO FINANCIAL STATEMENTS
June 30, 2024
Note 1 - Principal Business Activity and Significant Accounting Policies 18
A� The Agency 18
B. Government-wide and Fund Financial Statements 18
C� Measurement Focus, Basis of Accounting and Financial Statement Presentation 18
D� Budget Policy 19
E� Reporting Entity 19
F� Cash and Investments 19
G� Fund Balance Reporting 19
H� Net Position 20
I� Use of Estimates 20
Note 2 - Cash and Investments 20
Note 3 - Risk Management 20
FINANCIAL SECTION Financial Statements For the Fiscal Year Ended June 30, 2024
Notes to Basic Financial Statements
18 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Notes to Basic Financial Statements
Note 1 - Principal Business Activity and Significant Accounting Policies
A. The Agency
The Deschutes County Road Agency (the Agency), a component unit of Deschutes County, Oregon, was
established under ORS 190�010 on March 1, 2023, for the purpose of receiving and distributing U�S Forest
Service Secure Rural School funds for road construction in Deschutes County� The Deschutes County Board of
Commissioners is the governing body of the Agency�
B. 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 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 Agency 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 section� Taxes and other items not properly included among program revenues are reported instead as
general revenues�
Separate financial statements are provided for governmental funds.
C. 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� Grants and similar items are recognized as revenue as soon as all eligibility requirements
imposed by the provider have been met. It is the Agency’s policy to first apply restricted resources when an
expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are
available�
Governmental fund financial statements are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available� Revenues are considered to be available when they are collectible within the current period or
soon enough thereafter to pay liabilities of the current period� For this purpose, the Agency considers revenues
to be available if they are collected within sixty days of the end of the current period� Revenues received after
this period are considered unavailable� Expenditures generally are recorded when a liability is incurred, as
under accrual accounting�
The Agency reports the following governmental fund:
General Fund - The General Fund is utilized to account for the transactions of the Agency. U.S. Forest Service
Secure Rural Schools funds are the principal source of revenue� Expenditures are for road construction in
Deschutes County�
Financial Statements For the Fiscal Year Ended June 30, 2024 FINANCIAL SECTION
Deschutes County Road Agency
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 19
Note 1 - Principal Business Activity and Significant Accounting Policies (Continued)
D. Budget Policy
The Agency prepares a budget for all funds which meet the requirements of state law� The budget is prepared
on the modified accrual basis of accounting, with exceptions. For FY 2024, the budget was approved by County
management� The resolution authorizing appropriations for each fund sets the level for which it is unlawful
to over expend� Program, debt service, transfers out, and contingency are the levels of control established by
resolution. The detailed budget document provides specific detailed information for the above-mentioned
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� Based on the Agency’s date of establishment on March
1, 2023, FY 2025 budget is the first Agency budget that must be adopted by the Agency’s governing board, and
that budget was adopted by the governing board on June 26, 2024�
E. Reporting Entity
The Agency’s financial statements include the accounts of all Agency operations. The Agency is includable as a
component unit in the financial statements of Deschutes County, Oregon since the Agency’s governing board
is comprised of the Deschutes County Commissioners. The Agency is included in the financial statements of
the County as a special revenue fund, a blended component unit�
Note 1 - Principal Business Activity and Significant Accounting Policies (Continued)
F. Cash and Investments
Cash and investments are comprised of funds held by the Deschutes County Treasurer, in the County’s cash and
investment pool. The Agency’s cash and investments participate in this pool rather than specific, identifiable
securities� The Agency’s share of County pooled cash and investments can be drawn upon demand, and
therefore, the entire amount on deposit with the County is considered cash and cash equivalents� Interest
earned on pooled investments is allocated monthly based on the average daily balance of the Agency in relation
to total investments in the pool� It is not practical to determine the investment risk, collateral, or insurance
coverage for the Agency’s share of these pooled investments� This pool generally includes demand deposits,
investments in the Oregon State Treasurer’s Local Government Investment Pool (LGIP), obligations of the
United States Treasury and United States Government agencies and instrumentalities, certain high-grade
commercial paper and corporate bonds. This policy is in accordance with ORS 294.035 which specifies the
types of investments authorized for municipal corporations�
State statutes authorize the County to invest in obligations of the U�S� Treasury, commercial paper, corporate
bonds, municipal bonds, banker’s acceptances, repurchase agreements, and the State Treasurer’s Local
Government Investment Pool (LGIP)� Investments for the County, as well as for its component units, are
reported at fair value� The LGIP operates in accordance with appropriate state laws and regulations�
Information about the pooled cash and investments is included in the County’s annual comprehensive financial
report may be obtained by contacting the Deschutes County Finance Department, 1300 NW Wall Street, Suite
200, Bend, Oregon, 97703�
G. 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)�
FINANCIAL SECTION Financial Statements For the Fiscal Year Ended June 30, 2024
Notes to Basic Financial Statements
20 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Note 1 - Principal Business Activity and Significant Accounting Policies (Continued)
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 Agency’s governing board (the Agency’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 County
Administrator based on the County Commissioner’s direction�
5� Unassigned fund balance is the residual classification for the Agency’s general fund and includes all
spendable amounts not contained in the other classifications.
The Agency reduces restricted amounts first when expenditures are incurred for purposes for which both
restricted and unrestricted (committed, assigned or unassigned) amounts are available� The Agency 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�
h. Net Position
Net position represents the difference between assets and liabilities, all of which is not restricted.
I. 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 affect certain reported
amounts and disclosures. Accordingly, actual results could differ from these estimates.
Note 2 - Cash and Investments
As of June 30, 2024, the Agency had no deposits with the Deschutes County Treasurer� The Agency did have
deposits at some points during the fiscal year, and the deposits were adequately insured or collateralized by
securities held by the pledging financial institution in the financial institution’s name during the fiscal year.
Note 3 - Risk Management
In the agreement described in Note 1, Deschutes County covenants and agrees to defend, indemnify and hold
and save harmless the Agency and each of the Agency’s officers, agents and employees, if any, from and against
any and all claims whatsoever that might arise against the Agency or any of its officers, agents or employees,
if any, by reason of any alleged act or failure to act or failure of Deschutes County to act�
Required
Supplementary
Information
FINANCIAL SECTION Financial Statements For the Fiscal Year Ended June 30, 2024
22 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual – General Fund
For the Period Ended June 30, 2024
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Revenues
Intergovernmental $ 792,322 $ 792,322 $ 652,984 $ (139,338)
Total revenues 792,322 792,322 652,984 (139,338)
Expenditures
Current:
County roads 792,322 792,322 652,984 139,338
Total expenditures 792,322 792,322 652,984 139,338
Net change in fund balance - - - -
Fund balances, budget basis - beginning of year - - - -
Fund balances, budget basis - end of year $ - $ - $ - $ -
Financial Statements 2024
Deschutes County Road Agency
A COMPONENT UNIT OF DESCHUTES COUNTY, OREGON
Audit Comments and Government Auditing Standards Sections
Audit Comments and Government Auditing Standards Sections Financial Statements For the Fiscal Year Ended June 30, 2024
24 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
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 Road Agency
(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 Road Agency (the Agency), a
component unit of Deschutes County, Oregon, as of and for the period ended June 30, 2024, and the
related notes to the financial statements, which collectively comprise the Agency’s basic financial
statements, and have issued our report thereon dated December 4, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency’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 Agency’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency’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 Agency'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.
Financial Statements For the Fiscal Year Ended June 30, 2024 Audit Comments and Government Auditing Standards Sections
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 25
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency’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
Agency’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 4, 2024
Audit Comments and Government Auditing Standards Sections Financial Statements For the Fiscal Year Ended June 30, 2024
26 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
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�
Financial Statements For the Fiscal Year Ended June 30, 2024 Audit Comments and Government Auditing Standards Sections
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 27
Report of Independent Auditors Required by Oregon State
Regulations
Deschutes County Commissioners
Deschutes County Road Agency
(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 Road Agency (the Agency), a component unit of
Deschutes County, Oregon, as of and for the year ended June 30, 2024, and the related notes to the
financial statements, which collectively comprise the Agency’s basic financial statements, and have
issued our report thereon dated December 4, 2024.
Compliance
As part of obtaining reasonable assurance about whether the Agency’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:
Accounting records and internal control
Public fund deposits
Insurance and fidelity bonds
Investments
In connection with our testing, nothing came to our attention that caused us to believe the Agency
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.
Audit Comments and Government Auditing Standards Sections Financial Statements For the Fiscal Year Ended June 30, 2024
28 DESChUTES COUNTY ROAD AGENCY| A Component Unit of Deschutes County, Oregon
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Agency’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 Agency’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the Agency’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 consider 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 Agency 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 4, 2024
DESChUTES COUNTY ROAD AGENCY | A Component Unit of Deschutes County, Oregon 29
Deschutes County
1300 NW Wall St, Suite 203
Bend, OR 97703
www.deschutes.org