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Financial Statements
As of and For the Year Ended June 30, 2015
Sunriver Library County Service
District
Sunriver Library County Service District
District Officials
June 30, 2015
Governing Body
Deschutes County Commissioners
Tammy Baney
Anthony DeBone
Alan Unger
Registered Agent and Office
Tom Anderson
1300 NW Wall Street, Suite 200
Bend, Oregon 97701
Sunriver Library County Service District
Table of Contents
June 30, 2015
Independent Auditor’s Report .................................................................................................................................... 1
Management's Discussion and Analysis .................................................................................................................... 3
Financial Statements
Statement of Net Position ...................................................................................................................................... 8
Statement of Activities ........................................................................................................................................... 9
Balance Sheet – General Fund ............................................................................................................................. 10
Statement of Revenues, Expenditures and Changes in Fund Balance – General Fund ....................................... 11
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ............................... 12
Notes to Financial Statements .............................................................................................................................. 13
Other Supplementary Information
Schedule of Property Tax Transactions ............................................................................................................... 17
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards ................................................................................................................................................... 18
Audit Comments and Disclosures Required by State Regulations .......................................................................... 20
Independent Auditor’s Report Required by Oregon State Regulations ................................................................... 21
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1
Independent Auditor’s Report
The Deschutes County Commissioners
Sunriver Library County Service District
Bend, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the General
Fund of Sunriver Library County Service District (the District), a component unit of Deschutes County,
as of June 30, 2015 and for the year then ended, and the related notes to the financial statements, which
collectively comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and the General Fund of the District, as of
June 30, 2015, and the respective changes in financial position and the respective budgetary comparison
for the general fund for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
2
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 4 through 8 be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s financial statements. The schedule of property tax transactions is presented for
purposes of additional analysis and is not a required part of the financial statements. The schedule of
property tax transactions is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the schedule of property tax
transactions is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 18,
2015 on our consideration of the District’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District’s internal control over
financial reporting and compliance.
Report on Other Legal and Regulatory Requirements
In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have issued
our report dated September 18, 2015, on our consideration of the District’s compliance with certain
provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in
Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of
compliance and the results of that testing and not to provide an opinion on compliance.
For Eide Bailly, LLP
Boise, Idaho
September 18, 2015
3
Sunriver Library County Service District
Management’s Discussion and Analysis
June 30, 2015
As management of Sunriver Library County Service District, located in Deschutes County, Oregon, we offer
readers of Sunriver Library County Service District's financial statements this narrative overview and analysis of
the financial activities of Sunriver Library County Service District for the year ended June 30, 2015.
Financial Highlights
The liabilities of Sunriver Library County Service District exceeded its assets at June 30, 2015 by
$76,992.
Net position increased by $88,270.
Sunriver Library County Service District’s liabilities will be repaid with property taxes to be levied in
future years. Accounting principles generally accepted in the United States of America do not allow this
future cash flow to be reported as an asset.
As of June 30, 2015, Sunriver Library County Service District’s governmental fund reported ending fund
balance of $10,969, or 11.2% of Fiscal Year 2015 revenues.
Sunriver Library County Service District’s total debt decreased by $85,000 or 49% during the Fiscal Year
ended June 30, 2015. The District has one more annual principal payment on its debt, after which, the
District will be dissolved.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Sunriver Library 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 Sunriver
Library County Service District's finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of Sunriver Library County Service District's assets and
liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of Sunriver Library County Service
District is improving or deteriorating.
The Statement of Activities presents information showing how Sunriver Library County Service District's net
position changed during the period ended June 30, 2015. Changes in net position are reported when the
underlying event giving rise to the change occurs, regardless of the timing of the related cash or other financial
assets, flows. Thus, revenues and expenses are reported in this statement for some items, for example, property
taxes and accrued interest 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 Sunriver Library County Service District that are supported primarily by property taxes
(governmental activities). The governmental activity of Sunriver Library County Service District is servicing the
general obligation debt issued to build a county library.
The government-wide financial statements can be found on pages 8-9 of this report.
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Sunriver Library County Service District
Management’s Discussion and Analysis
June 30, 2015
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated
for specific activities or objectives. Sunriver Library County Service District, like other state and local
government entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. The Sunriver Library County Service District fund is classified as a governmental fund.
Governmental funds Governmental funds are used to account for the same functions as governmental activities in
the government-wide financial statements. However, unlike the government-wide financial statements,
governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well
as on balances of spendable resources available at the end of the fiscal period. Such information may be useful in
evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. A reconciliation from the Governmental
Funds Balance Sheet to the Government-wide Statement of Net Position and a reconciliation from the
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Government-
wide Statement of Activities have been included in this report.
Sunriver Library County Service District reported activity in a governmental fund during the year ended June 30,
2015. Information is presented in the governmental fund Balance Sheet and in the governmental fund Statement
of Revenues, Expenditures and Changes in Fund Balance for the District's fund.
Sunriver Library County Service District adopts an annual budget for its fund. A budgetary comparison statement
has been provided to demonstrate compliance with the annual budget.
The basic governmental fund financial statements can be found on pages 10-11 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 13-
16 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
Sunriver Library County Service District, liabilities exceeded assets resulting in a net deficit of $76,992 at June
30, 2015. The resources, property taxes, to repay the general obligation bond will be available in future periods.
The District has the authority to levy an annual property tax to meet its annual debt service requirements until the
general obligation bond is fully repaid. Accounting principles generally accepted in the United States of America
do not allow the recognition of future levies. Please see Note 3 on page 16 for additional information.
5
Sunriver Library County Service District
Management’s Discussion and Analysis
June 30, 2015
Sunriver Library County Service District's net position increased by $88,270 during the year ended June 30, 2015.
A comparison of the summarized government-wide statements to the prior year is as follows:
June 30, 2015 June 30, 2014 Change
Assets
Current assets 13,435$ 10,568$ 2,867$
Liabilities
Current liabilities 90,427 85,830 4,597
Noncurrent liabilities - 90,000 (90,000)
Total liabilities 90,427 175,830 (85,403)
Net Position (76,992)$ (165,262)$ 88,270$
Governmental Activities
Statement of Net Position
The increase in the District's net position occurred because the property tax levy was greater than expenses during
the year. The levy is used to pay a portion of the general obligation bond each year.
Year Ended Year Ended
June 30, 2015 June 30, 2014 Change
Revenues
Property taxes 97,429$ 87,432$ 9,997$
Interest and other 413 311 102
Total revenues 97,842 87,743 10,099
Expenses
General government 9,572 14,155 (4,583)
Change in Net Position 88,270 73,588 14,682
Net Position, Beginning of Year (165,262) (238,850) 73,588
Net Position, End of Year (76,992)$ (165,262)$ 88,270$
Statement of Activities
Governmental Activities
District property taxes are levied in an amount sufficient to generate resources for the annual scheduled payment
of both principal and interest on the District's general obligation bond. As only the interest is reported as an
expense (the principal payment is a reduction of a liability), revenues exceed expenses. Due to the nature of the
District's activity, there is not a significant change in results from prior years. The District's major source of
revenue is the property tax levy. The amount of the annual levy is sufficient to allow for the discount taken by a
majority of the tax payers and for delinquencies.
6
Sunriver Library County Service District
Management’s Discussion and Analysis
June 30, 2015
Financial Analysis of the District's Fund
Sunriver Library County Service District uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds The focus of Sunriver Library County Service District's governmental fund is to provide
information on near-term inflows, outflows and balances of spendable resources. Such information is useful in
assessing Sunriver Library County Service District's financing requirements. In particular, unreserved fund
balance may serve as a useful measure of a government's net resources available for spending as of the end of the
fiscal year.
As of June 30, 2015, $10,969, all restricted for debt service, is the reported ending fund balance for Sunriver
Library County Service District's governmental fund, an increase of $3,338 from June 30, 2014. One measure of
the General Fund's liquidity is the relationship of both the unassigned and the total fund balance to the fund's total
revenues. The fund balance as of June 30, 2015, for the General Fund is 11.2% of total General Fund Fiscal Year
2015 revenues.
General Fund Budgetary Highlights
There were no differences between the Sunriver Library County Service Districts' General Fund budget as
originally adopted and the final amended budget. General Fund actual revenues exceeded estimated revenues by
$2,338.
Capital Assets and Debt Administration
Capital Assets
Sunriver Library County Service District owns no capital assets.
Long-Term Debt
Sunriver Library County Service District has $90,000 in outstanding general obligation bonds. Sunriver Library
County Service District's debt decreased by $85,000, or 49% during the period.
Sunriver Library County Service District is not separately rated by the bond rating services. However, the most
recent debt issued by Deschutes County, of which Sunriver Library County Service District is a component unit,
was rated Aa3 by Moody's Investors Services.
Additional information on Sunriver Library County Service District's long-term debt is included in Note 3 on
page 16 of this report.
Key Economic Factors and Budget Information for the Future
Due to the improved economy, it is anticipated that the collection rate on the net levy will be approximately 98%
allowing for the repayment of the debt is FY 2016, the year the District will be dissolved.
7
Sunriver Library County Service District
Management’s Discussion and Analysis
June 30, 2015
Requests for Information
This financial report is designed to provide a general overview to those parties interested in Sunriver Library
County Service District's finances. Questions concerning any of the information provided in this report or requests
for additional information should be addressed to Deschutes County Finance Department, 1300 NW Wall Street,
Suite 200, Bend, Oregon, 97701.
See Notes to Financial Statements 8
Sunriver Library County Service District
Statement of Net Position
June 30, 2015
Primary
Government -
Governmental
Activities
Assets
Cash and investments 10,682$
Property taxes receivable 2,753
Total assets 13,435
Liabilities
Accrued interest expense 427
General obligation bond - current portion 90,000
Total liabilities 90,427
Net Position
Restricted for debt service 13,008
Unrestricted (90,000)
Total net position (76,992)$
See Notes to Financial Statements 9
Sunriver Library County Service District
Statement of Activities
Year Ended June 30, 2015
Primary
Government -
Governmental
Activities
Expenses
Interest expense 9,572$
Total expenses 9,572
General Revenues
Property taxes levied for debt service 97,429
Earnings on investments 413
Total general revenues 97,842
Change in Net Position 88,270
Net Position, Beginning of Year (165,262)
Net Position, End of Year (76,992)$
See Notes to Financial Statements 10
Sunriver Library County Service District
Balance Sheet – General Fund
June 30, 2015
Assets
Cash and investments 10,682$
Property taxes receivable 2,753
Total assets 13,435$
Deferred Inflows of Resources
Unavailable revenue - property taxes 2,466$
Total deferred inflows of resources 2,466
Fund balance
Restricted for debt service 10,969
Total deferred inflows of resources and fund balance 13,435$
Fund Balance - General Fund 10,969$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Long-term liabilities are not due and payable in the current period and, therefore, are
not reported on the Balance Sheet. (90,000)
Some of the District's taxes will be collected after year-end, but are not currently
available resources and, therefore, are deferred in the governmental fund. 2,466
Interest on long-term debt is not accrued in the governmental fund but rather is
recognized as an expenditure when due. (427)
Net position of governmental activities (76,992)$
See Notes to Financial Statements 11
Sunriver Library County Service District
Statement of Revenues, Expenditures and Changes in Fund Balance – General Fund
Year Ended June 30, 2015
Revenues
Property Taxes 97,900$
Interest 413
Total revenues 98,313
Expenditures
Debt Service
Principal 85,000
Interest 9,975
Total expenditures 94,975
Net Change in Fund Balance 3,338
Fund Balance, Beginning of Year 7,631
Fund Balance, End of Year 10,969$
Net Change in Fund Balance - General Fund 3,338$
Amounts reported for governmental activities in the Statement of Activities are different because:
Interest on long-term debt is not recognized under the modified accrual basis of
accounting until due, rather than when it accrues. 403
Repayment of principal is reported as an expenditure in the governmental fund but
reduces the liability in the Statement of Net Position. 85,000
Property tax revenue is recognized under the modified accrual basis of accounting
only to the extent it has been collected within sixty days of year-end. On the accrual
basis Statement of Activities, such revenue is recognized regardless of when
collected.(471)
Change in net position of governmental activities 88,270$
See Notes to Financial Statements 12
Sunriver Library County Service District
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
Year Ended June 30, 2015
Actual Variance with
Original Final Amounts Final Budget
Revenues
Property taxes 95,975$ 95,975$ 97,900$ 1,925$
Interest - - 413 413
Total revenues 95,975 95,975 98,313 2,338
Expenditures
Debt service 94,975 94,975 94,975 -
Net change in fund balance 1,000 1,000 3,338 2,338
Fund Balance, Beginning of Year 7,000 7,000 7,631 631
Fund Balance, End of Year 8,000$ 8,000$ 10,969$ 2,969$
Budgeted Amounts
13
Sunriver Library County Service District
Notes to Financial Statements
June 30, 2015 and 2014
Note 1 - Principal Business Activity and Significant Accounting Policies
The District
Sunriver Library County Service District was established under ORS 451.410 to 451.610 in September of 1996, to
construct a library within the District's boundaries and service the related debt. Subsequent to the construction of
the library, ownership of the building was transferred to the Deschutes Public Library District. Per an
intergovernmental agreement, the Deschutes Public Library Service District agreed to continuously use the library
facilities to provide library services as long as any bonds issued were outstanding.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities)
report information on all of the activities of the District. Governmental activities, which normally are supported
by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a
significant extent, on fees and charges for support. The District has no business-type activities or fiduciary funds.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. The District receives no program revenues. Taxes and other items not properly included among program
revenues are reported 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.
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 year or soon
enough thereafter to pay liabilities of the current year. For this purpose, the District considers revenues to be
available if they are collected within sixty days of the end of the current fiscal year. Revenues received after this
period are considered unavailable. Expenditures are recorded when a liability is incurred, as under accrual
accounting. However, expenditures related to interest on long-term debt payments are recorded only when
payment is due.
Property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal year. All other revenue items are considered to be measurable
and available only when cash is received by the District.
The District reports the following governmental fund:
The General Fund is utilized to account for the transactions of the District. Property taxes are the principal
source of revenue, Expenditures are for payment of the District's long-term debt.
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Sunriver Library County Service District
Notes to Financial Statements
June 30, 2015 and 2014
Budget Policy
The District prepares a budget for all funds which meet the requirements of state law. The budget is prepared on
the modified accrual basis of accounting. The resolution authorizing appropriations for each fund sets the level by
which it is unlawful to over expend appropriations, For the District, debt service is the sole level of control
established by resolution. The detailed budget document provides for specific detailed information for the above-
mentioned expenditure category. Unexpected additional resources may be added to the budget through the use of
a supplemental budget and appropriations resolution. Original and supplemental budgets may be modified by the
use of appropriation transfers between the levels of control. Appropriations lapse as of year-end.
Reporting Entity
The District's financial statements include the accounts of all District operations. The criteria for including
organizations as component units within the District's reporting entity, as set forth in GASB 61, The Financial
Reporting Entity: Omnibus, include whether:
The organization is legally separate (can sue and be sued in its own name).
The District holds the corporate powers of the organization.
The District appoints a voting majority of the organization's board.
The District is able to impose its will on the organization.
The organization has the potential to impose a financial benefit/burden on the District.
There is fiscal dependency by the organization on the District.
There were no specific agencies which required consideration under the criterion in the current fiscal year for
inclusion in the District's reporting entity.
Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes
County, since the District's governing board is comprised of the Deschutes County Commissioners and is able to
impose its will on the District.
Cash and Investments
Cash and investments are comprised of funds held by the Deschutes County Treasurer, in the County's cash and
investment pool. The District’s cash and investments participate in this pool rather than specific, identifiable
securities. The District’s share of County pooled cash and investments can be drawn upon demand, and therefore,
the entire amount on deposit with the County is considered cash and cash equivalents. Interest earned on pooled
investments is allocated monthly based on the average daily balance of the District in relation to total investments
in the pool. It is not practical to determine the investment risk, collateral, or insurance coverage for the District’s
share of these pooled investments. This pool generally includes demand deposits, investments in the Oregon State
Treasurer's Local Government Investment Pool (LGIP), obligations of the United States Treasury and United
States Government agencies and instrumentalities, certain high-grade 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.
15
Sunriver Library County Service District
Notes to Financial Statements
June 30, 2015 and 2014
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, 97701.
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 Fiscal Year 2015 tax levy was $99,952.
Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary
collecting agency. Uncollected property taxes are shown in the General Fund balance sheet as receivables.
Collections within sixty days subsequent to year-end have been accrued and the remaining property taxes
receivable are recorded as deferred inflows of resources on the modified accrual basis of accounting since they are
deemed unavailable to finance operations of the current period.
Long-term Debt
Debt is recognized as a liability of a governmental fund when due. The portion of the debt that has not yet
matured is reported on the government-wide financial statements as a long-term liability.
Fund Balance Reporting
The Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions (GASB 54), defines the different types of fund balances that a governmental
entity must use for financial reporting purposes.
GASB 54 requires the fund balance amounts to be properly reported within one of the fund balance categories
listed below:
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),
Restricted fund balance category includes amounts that can be spent only for specific
purposes stipulated by constitution, external resource providers or through enabling
legislation,
Committed fund balance classification includes amounts that can be used only for the specific
purposes determined by a formal action of the Districts’ governing board (the District's
highest level of decision-making authority),
Assigned fund balances classification are intended to be used by the District for specific
purposes but do not meet the criteria to be classified as restricted or committed. Assignments
are made by the County Administrator based on the County Commissioner’s direction, and
Unassigned fund balance is the residual classification for the District’s general fund and
includes all spendable amounts not contained in the other classifications.
16
Sunriver Library County Service District
Notes to Financial Statements
June 30, 2015 and 2014
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 affect certain reported amounts
and disclosures. Accordingly, actual results could differ from these estimates.
Note 2 - Cash and Investments
As of June 30, 2015, the District had a deposit of $10,682 with the Deschutes County Treasurer. All of the
District's deposits were adequately insured during the year.
Note 3 - Bond Debt
The District issued general obligation bonds on October 29, 1996, to finance land acquisition and the construction
of the Sunriver Public Library. Bond principal payments are due annually on June 1 and interest is due semi-
annually on December 1 and June 1. The interest rate on the remaining scheduled maturities range is 5.7%.
The maturity schedule for District Debt is as follows:
Principal Interest Total
90,000$ 5,130$ 95,130$
Fiscal Year Ending June 30,
2016
Bonds are callable beginning June 1, 2006, and any interest dates thereafter, at par.
The bond transactions during the year are as follows:
Principal Interest
Balance Matured Matured Balance Due Within
July 1, 2013 and Paid and Paid June 30, 2014 One Year
1996 Series 175,000$ 85,000$ 14,535$ 90,000$ 90,000$
Other Supplementary Information
June 30, 2015
Sunriver Library County Service
District
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g in
n
i
n
g
Taxes
Ba
l
a
n
c
e
a
n
d
I
n
t
e
r
e
s
t
R
e
c
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a
b
l
e
Ta
x
Y
e
a
r
20
1
4
-
1
5
L
e
v
y
Ad
j us
t
m
e
n
t
s
(Di
s
c
o
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n
t
s
)
Co
l
l
e
c
t
i
o
n
s
J
u
n
e
3
0
,
2
0
1
5
20
1
4
-
2
0
1
5
9
9
,
9
5
2
$
(26
8
)
$
(2,
4
8
9
)
$
9
5
,
5
9
7
$
1
,
5
9
8
$
20
1
3
-
2
0
1
4
1
,
7
4
0
(28
)
6
6
1
,
1
9
8
5
8
0
20
1
2
-
2
0
1
3
7
8
7
(3 )
6
9
5
3
6
3
1
7
20
1
1
-
2
0
1
2
5
0
5
(3 )
8
6
4
5
3
1
3
5
20
1
0
-
2
0
1
1
1
6
7
(2 )
3
7
1
6
4
3
8
20
0
9
-
2
0
1
0
5
3
(3 )
1
0
3
3
2
7
20
0
8
-
2
0
0
9
2
9
(1 )
4
1
0
2
2
20
0
7
-
2
0
0
8
7
-
-
1
6
Pr
i
o
r
3
2
-
1
3
3
0
To
t
a
l
s
1
0
3
,
2
7
2
$
(
3
0
8
)
$
(
2
,
2
1
6
)
$
9
7
,
9
9
5
2
,
7
5
3
$
Al
l
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c
a
t
i
o
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o
f
R
e
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f
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m
l
a
n
d
s
a
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-
Ad
j us
t
m
e
n
t
s
f
o
r
a
c
c
r
u
a
l
s
Ju
n
e
3
0
,
2
0
1
5
(38
2
)
Ju
n
e
3
0
,
2
0
1
4
28
7
Mo
d
i
f
i
e
d
a
c
c
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a
l
b
a
s
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s
t
a
x
r
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v
e
n
u
e
9
7
,
9
0
0
$
www.eidebailly.com
877 W. Main St., Ste. 800 | Boise, ID 83702-5858 | T 208.344.7150 | F 208.344.7435 | EOE
18
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
To the Deschutes County Commissioners
Sunriver Library County Service District
Bend, Oregon
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities and the general fund of Sunriver Library County Service District (the District) as of and for the
year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise
the District’s basic financial statements, and have issued our report thereon dated September 18, 2015.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we
do not express an opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the District’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not yet been identified.
19
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the District’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
Boise, Idaho
September 18, 2015
20
Sunriver Library County Service District
Audit Comments and Disclosures Required by State Regulations
June 30, 2015
Audit Comments and Disclosures Required by State Regulations
Oregon Administrative Rules 162-010-000 through 162-010-0330 of the Minimum Standards for Audits of
Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board
of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit
reports. The required statements and schedules are set forth in the preceding sections of this report. Required
comments and disclosures related to the audit of such statements and schedules are set forth in the following
pages.
www.eidebailly.com
877 W. Main St., Ste. 800 | Boise, ID 83702-5858 | T 208.344.7150 | F 208.344.7435 | EOE
21
Independent Auditor’s Report Required by Oregon State Regulations
To Deschutes County Commissioners
Sunriver Library County Service District
Bend, Oregon
We have audited the basic financial statements of Sunriver Library County Service District (the District)
as of and for the year ended June 30, 2015, and have issued our report thereon dated September 18, 2015.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the provisions of the Minimum Standards of Audits of Oregon Municipal Corporations,
prescribed by the Secretary of State. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the basic financial statements are free from material misstatement.
Compliance
As part of obtaining reasonable assurance about whether the District’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, including provisions of Oregon Revised Statutes as specified in Oregon
Administrative Rules 162-010-0000 through 162-10-0330, as set forth below, noncompliance with which
could have a direct and material effect on the determination of financial statements amounts:
Instances of Non-
Compliance Identified
Preface Not Applicable
Definitions Not Applicable
General Requirements None noted
Contracts None noted
Financial Statements None noted
Required Supplementary Information (RSI) None noted
Supplementary Financial Information None noted
Schedule of Revenues, Expenditures / Expenses, and Changes in Fund
Balances / Net Position, Budget and Actual (Each Fund) None noted
Schedule of Accountability for Independently Elected Officials Not Applicable
Schedule of Property Tax Transactions or Acreage Assessments None noted
Other Financial or Statistical Information Not Applicable
Section
162-010-0030
162-010-0140
162-010-0190
162-010-0130
OAR
162-010-0150
162-010-0000
162-010-0010
162-010-0020
162-010-0050
162-010-0115
162-010-0120
22
Instances of Non-
Compliance Identified
Independent Auditor's Review of Fiscal Affairs None noted
Accounting Records and Internal Control None noted
Public Fund Deposits None noted
Indebtedness None noted
Budget None noted
Insurance and Fidelity Bonds None noted
Programs Funded from Outside Sources Not Applicable
Highway Funds Not Applicable
Investments None noted
Public Contracts and Purchasing Not Applicable
State School Fund Not Applicable
Public Charter Schools Not Applicable
Other Comments and Disclosures Not Applicable
Extensions of Time to Deliver Audit Reports Not Applicable
162-010-0200
162-010-0230
162-010-0240
OAR Section
162-010-0330
162-010-0310
162-010-0320
162-010-0315
162-010-0316
162-010-0250
162-010-0260
162-010-0270
162-010-0280
162-010-0295
162-010-0300
However, providing an opinion on compliance with those provisions was not an objective of our audit
and, accordingly, we do not express such an opinion. The results of our test disclosed no instances of
noncompliance that are required to be reported under Minimum Standards for Audits of Oregon
Municipal Corporations, prescribed by the Secretary of State.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the District’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the District’s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the District’s financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not yet been identified.
23
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Secretary of State,
in considering the District’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
For Eide Bailly LLP
Boise Idaho
September 18, 2015