HomeMy WebLinkAboutCountywide Law Enforcement 2019 Financial StatementsFinancial Statements
As of and For the Year Ended June 30, 2019
Countywide Law Enforcement
District
A Component Unit of Deschutes County, Oregon
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Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Table of Contents
June, 30 2019
IndependentAuditor's Report .................................................................................................................................... 1
Management's Discussion and Analysis....................................................................................................................
4
Financial Statements
Statementof Net Position......................................................................................................................................
9
Statementof Activities.........................................................................................................................................
10
Balance Sheet — General Fund.............................................................................................................................
11
Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Position .....................
12
Statement of Revenues, Expenditures and Changes in Fund Balance — General Fund .......................................
13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the
Governmental Fund to the Statement of Activities..........................................................................................
14
Notesto Financial Statements..............................................................................................................................
15
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General Fund.......
19
Other Supplementary Information
Schedule of Property Tax Transactions...............................................................................................................
20
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards.................................................................................................................................................................
21
Audit Comments and Disclosures Required by State Regulations..........................................................................
23
Independent Auditor's Report Required by Oregon State Regulations...................................................................
24
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CPAs & BUSINESS ADVISORS
Independent Auditor's Report
The Deschutes County Commissioners
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the general
fund of Countywide Law Enforcement District (the District), a component unit of Deschutes County,
Oregon as of and for the year ended June 30, 2019, and the related notes to the financial statements,
which collectively comprise the District's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and the general fund of the District, as of June
30, 2019, and the respective changes in financial position for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 1, the financial statements of the District are intended to present the financial
position and changes in financial position attributable to the District. They do not purport to, and do not
present fairly the financial position of Deschutes County, Oregon as of June 30, 2019, and the changes in
its financial position for the year then ended in conformity with accounting principles generally accepted
in the United States of America. Our opinions have not been modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and the schedule of revenues, expenditures and changes in fund balance — budget
and actual — general fund (budgetary schedule), as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to management's
discussion and analysis and the budgetary schedule in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on
management's discussion and analysis or the budgetary schedule because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The budgetary schedule described above is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The budgetary schedule has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the budgetary schedule is fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
2
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's financial statements. The schedule of property tax transactions (supplementary
information) is presented for purposes of additional analysis and is not a required part of the financial
statements. The supplementary information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
supplementary information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November 18,
2019 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 solely describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the District's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
District's internal control over financial reporting and compliance.
Report on Other Legal and Regulatory Requirements
In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have issued
our report dated November 18, 2019 on our consideration of the District's compliance with certain
provisions of laws and regulations, including the provisions of Oregon Revised Statutes as specified in
Oregon Administrative Rules. The purpose of that report is to describe the scope of our testing of
compliance and the results of that testing and not to provide an opinion on compliance.
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3
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2019
As management of Countywide Law Enforcement District (the District), a component unit of Deschutes County,
Oregon, we offer readers of the District's financial statements this narrative overview and analysis of the financial
activities of the District for the fiscal year ended June 30, 2019.
Financial Highlights
• The assets and deferred outflows of resources of the Countywide Law Enforcement District exceeded its
liabilities and deferred inflows of resources at June 30, 2019, by $10,330,173, all of which is unrestricted.
• As of June 30, 2019, Countywide Law Enforcement District's governmental fund reported an ending fund
balance of $9,807,414.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Countywide Law Enforcement District's
basic financial statements. These basic financial statements comprise three components: 1) government -wide
financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also
contains other supplementary information in addition to the basic financial statements themselves.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of Countywide
Law Enforcement District's finances, in a manner similar to a private -sector business.
The Statement of Net Position presents information on all of Countywide Law Enforcement District's assets and
liabilities, with the difference between the two reported as Net Position. Over time, increases or decreases in Net
Position may serve as a useful indicator of whether the financial position of Countywide Law Enforcement
District is improving or deteriorating.
The Statement of Activities presents information showing how Countywide Law Enforcement District's Net
Position changed during the fiscal year ended June 30, 2019. Changes in Net Position are reported when the
underlying event giving rise to the change occurs, regardless of the timing of the related cash, or other financial
assets, flows. Thus, revenues and expenses are reported in this statement for some items, for example, property
taxes, that will result in cash flows in future fiscal periods.
Each of these government -wide financial statements, Statement of Net Position and Statement of Activities, show
the functions of Countywide Law Enforcement District that are supported primarily by taxes (governmental
activities). The governmental activity of Countywide Law Enforcement District is public safety.
The government -wide financial statements can be found on pages 9-10 of this report.
0
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2019
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. Countywide Law Enforcement District, like other state and local government
entities, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. The
Countywide Law Enforcement District's is classified as a governmental fund.
Governmental Funds
Governmental funds are used to account for essentially the same functions as governmental activities in the
government -wide financial statements. However, unlike the government -wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances
of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. A reconciliation from the Governmental
Funds Balance Sheet to the Government -wide Statement of Net Position and a reconciliation from the
Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government -
wide Statement of Activities have been included in this report.
Countywide Law Enforcement District reported activity in one governmental fund during the fiscal year ended
June 30, 2019.
Countywide Law Enforcement District 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 Basic Governmental Fund Financial Statements can be found on pages 11-14 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements. The notes to the financial statements can be found on pages 15
18 of this report.
Government -wide Financial Analysis
Net Position, at a specific point in time, serves as a useful indicator of an entity's financial position. In the case of
Countywide Law Enforcement District, assets exceed liabilities by $10,330,173 at June 30, 2019. All of the Net
Position may be used to meet the District's on-going obligations to citizens and creditors.
The District's Net Position increased by $2,066,054 during the year ended June 30, 2019.
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2019
A comparison of the summarized government -wide statements to the prior year is as follows:
Statements of Net Position
June 30, 2019 June 30, 2018 Change
Assets
Cash and investments $ 9,742,635 $ 7,740,840 $ 2,001,795
Property taxes receivable 587,538 523,279 64,259
Total assets 10,330,173 8,264,119 2,066,054
Net Position
Unrestricted 10,330,173 8,264,119 2,066,054
Total net position $ 10,330,173 $ 8,264,119 $ 2,066,054
State me nts o f Activitie s
General revenues
Property taxes levied for general purposes
Earnings on investments
Total revenues
Expenses
Public safety
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
Year Ended Year Ended
June 30, 2019 June 30, 2018 Change
$ 25,597,344 $ 22,802,705 $ 2,794,639
346,234 130,739 215,495
25,943,578 22,933,444 3,010,134
23,877,524 22,101,579 (1,775,945)
2,066,054 831,865 1,234,189
8,264,119 7,432,254 831,865
$ 10,330,173 $ 8,264,119 $ 2,066,054
9
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2019
Governmental Activities
Governmental activities, the only type of activity of Countywide Law Enforcement District, increased Net
Position by $2,066,054 during the fiscal year ended June 30, 2019. Tax revenues and investment interest
exceeded the payment made to Deschutes County Sheriff's Office, pursuant to an inter -governmental agreement.
Financial Analysis of the District's Funds
Countywide Law Enforcement District uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements.
Governmental Funds
The focus of Countywide Law Enforcement District's governmental fund is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing Countywide Law
Enforcement District's financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government's net resources available for spending as of the end of the fiscal year.
As of June 30, 2019, $9,807,414 is the reported ending fund balance for Countywide Law Enforcement District's
governmental fund.
One measure of liquidity is the relationship of both the unassigned balance to the Fund's total revenues. The fund
balance as of June 30, 2019, for the General Fund, is 38% of total General Fund Fiscal Year 2019 revenues.
The fund balance of the Countywide Law Enforcement District's General Fund increased by $2,011,296 during
the fiscal year ended June 30, 2019.
General Fund Budgetary Highlights
There were no differences between the Countywide Law Enforcement District's General Fund budget as
originally adopted and the final amended budget. Actual revenues exceeded estimated revenues by $593,610.
This is due to generally conservative estimates used for the Fiscal Year 2019 budget. Property tax revenue
exceeded the amount estimated by $450,341. The District contracts with Deschutes County for Deschutes
County's operational activities. The amount paid pursuant to the contract is based on the actual cost of providing
such services, $23,877,524 which is $1,920,428 less than the amount appropriated.
Capital Asset and Debt Administration
Capital Assets
Countywide Law Enforcement District owns no capital assets.
7
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2019
Long-term Debt
Countywide Law Enforcement District has no long-term debt; therefore, the District has not been separately rated
by any of the bond rating agencies.
Key Economic Factors and Budgets Information for the Future
The tax rate approved by the voters will allow the District to maintain sufficient reserves to finance its operations
without needing to issue tax anticipation notes.
Requests for Information
This financial report is designed to provide a general overview to those parties interested in Countywide Law
Enforcement District's finances. Questions concerning any of the information provided in this report or requests
for additional information should be addressed to Deschutes County Finance Department, PO Box 6005, Bend,
Oregon, 97708.
Assets
Cash and investments
Property taxes receivable
Total assets
Net Position
Unrestricted
See Notes to Financial Statements
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Statement of Net Position
June 30, 2019
Primary
Government -
Governmental
Activities
$ 9,742,635
587,538
10,330,173
$ 10,330,173
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Statement of Activities
Year Ended June 30, 2019
Primary
Government -
Governmental
Activities
Expenses
Public safety $ 23,877,524
General Revenues
Property taxes levied for general purposes 25,597,344
Earnings on investments 346,234
Total general revenues 25,943,578
Changes in Net Position 2,066,054
Net Position, Beginning of Year 8,264,119
Net Position, End of Year $ 10,330,173
See Notes to Financial Statements 10
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Balance Sheet — General Fund
June 30, 2019
Assets
Cash and investments $ 9,742,635
Property taxes receivable 587,538
Total assets $ 10,330,173
Deferred Inflow of Resources
Unavailable revenue - property taxes $ 522,759
Fund Balance
Unassigned 9,807,414
Total deferred inflow of resources and fund balance $ 10,330,173
See Notes to Financial Statements 11
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Position
June 30, 2019
Fund Balance for the governmental fund $ 9,807,414
Amounts reported for governmental activities in the Statement of Net Position are different because:
Some of the District's taxes will be collected after year-end, but are not currently
available resources and, therefore, are deferred in the fund. 522,759
Net Position of Governmental Activities $ 10,330,173
See Notes to Financial Statements 12
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Statement of Revenues, Expenditures and Changes in Fund Balance — General Fund
Year Ended June 30, 2019
Revenues
Property taxes $ 25,542,586
Interest 346,234
Total revenues 25,888,820
Expenditures
Public safety 23,877,524
Net Change in Fund Balance 2,011,296
Fund Balance, Beginning of Year 7,796,118
Fund Balance, End of Year $ 9,807,414
See Notes to Financial Statements 13
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental
Fund to the Statement of Activities
Year Ended June 30, 2019
Net Change in Fund Balance - Total Governmental Fund
$ 2,011,296
Amounts reported for governmental activities in the Statement of Activities are different because:
Property tax revenue is recognized under the modified accrual basis of
accounting only to the extent it has been collected within sixty days of year-end.
On the accrual basis, Statement of Activities, such revenue is recognized
regardless of when collected. Increase / (Decrease) in unavailable property taxes. 54,758
Changes in Net Position of Governmental Activities $ 2,066,054
See Notes to Financial Statements 14
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2019
Note 1 - Organization and Summary of Significant Accounting Policies
The District
Countywide Law Enforcement District (the District), a component unit of Deschutes County, Oregon, an ORS
Chapter 451 municipal corporation of the State of Oregon, was approved and created by election of Deschutes
County (the County) voters on November 7, 2006, for the purpose of providing a permanent source of funding for
law enforcement services that are provided to all County residents. The District entered into an intergovernmental
agreement, April 16, 2007, with Deschutes County whereby the County, through the Deschutes County Sheriff's
Office, is contracted to perform certain law enforcement functions within its boundaries. The Deschutes County
Board of Commissioners is the governing body of the District.
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)
report information on all of the activities of the District. Governmental activities, which are supported by taxes
and investment earnings, are reported separately from business -type activities, which rely to a significant extent
on fees and charges for support. The District has no business -type activities or fiduciary funds.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include: 1) charges to customers who purchase, use, or directly benefit from goods,
services or privileges provided by a given function or segment; and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not
properly included among program revenues are reported instead as general revenues.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government -wide financial statements are prepared using the economic resources measurement focus and the
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred. Property taxes are recognized as revenues in the year for which they are levied.
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be
available if they are collected within sixty days of the end of the current fiscal period. Revenues received after this
period are considered unavailable. Expenditures are recorded when a liability is incurred, as under accrual
accounting.
Property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable
and available only when cash is received by the District.
15
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2019
The District reports the following governmental fund:
General Fund — The General Fund is utilized to account for the transactions of the District. Property
taxes and interest on investments are its only sources of revenue. Expenditures are for public safety
pursuance to the agreement described in Note 1.
Budget Policy
The District meets the requirement of state law by preparing a budget for its fund. The budget is prepared on the
modified accrual basis of accounting. The resolution authorizing appropriations sets the level by which
expenditures cannot legally exceed appropriations. Program activity is the only budgetary level of control
established by resolution. The detailed budget document provides 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 Districts reporting entity, as set forth in GASB 61, The Financial
Reporting Entity: Omnibus, include whether:
• The organization is legally separate (can sue and be sued in its own name).
• The District holds the corporate powers of the organization.
• The District appoints a voting majority of the organizations' board.
• The District is able to impose its will on the organization.
• The organization has the potential to impose a financial benefit/burden on the District.
• There is a fiscal dependency by the organization on the District.
There were no specific agencies which required consideration under the criterion in the current fiscal year for
inclusion in the District's reporting entity.
Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes
County, since the District's governing board is comprised of the Deschutes County Commissioners and there is a
fiscal dependency between the District and the County.
16
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2019
Cash and Investments
Cash and investments are comprised of funds held by the Deschutes County Treasurer, in the Deschutes County's
cash and investment pool. The District's cash and investments participate in this pool rather than in specific,
identifiable securities. The District's share of County pooled cash and investments can be drawn upon demand,
and therefore, the entire amount on deposit with the County is considered cash and cash equivalents. Interest
earned on pooled investments is allocated monthly based on the average daily balance of the District in relation to
total investments in the pool. It is not practical to determine the investment risk, collateral, or insurance coverage
for the District's share of these pooled investments. This pool generally includes demand deposits, investments in
the Oregon State Treasurer's Local Government Investment Pool (LGIP), obligations of the United States
Treasury and United States Government agencies and instrumentalities, certain high-grade commercial paper and
corporate bonds. This policy is in accordance with ORS 294.035 which specifies the types of investments
authorized for municipal corporations.
State statutes authorize the County to invest in obligations of the U.S. Treasury, commercial paper, corporate
bonds, municipal bonds, banker's acceptances, repurchase agreements, and the State Treasurer's Local
Government Investment Pool (LGIP). Investments for the County, as well as for its component units, are reported
at fair value. The LGIP operates in accordance with appropriate state laws and regulations.
Information about the pooled cash and investments is included in the County's annual financial report and may be
obtained by contacting the Deschutes County Finance Department, PO Box 6005, Bend, Oregon, 97708.
Property Taxes/Unavailable Revenue
Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied as of July 1 based on
assessed values as of January 1. Property tax payments are due in three equal installments, on November 15,
February 15 and May 15. A discount of 3% is available if taxes are paid in full by November 15 and a discount of
2% on the unpaid balance is available if taxes are paid in full by February 15.
Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May
15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2019 fiscal year tax
levy was $26,234,444.
Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary
collecting agency. Uncollected property taxes are shown on the governmental balance sheet as receivables.
Collections within sixty days subsequent to year-end have been accrued and the remaining taxes receivable are
recorded as deferred revenue on the modified accrual basis of accounting since they are not deemed available to
finance operations of the current period.
Fund Balances
The Governmental Accounting Standards Board (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.
17
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2019
GASB 54 requires the fund balance amounts to be properly reported within one of the fund balance categories
listed below:
1. Nonspendable-such as fund balance associated with inventories, prepaids, long-term loans and notes
receivable, and property held for resale (unless the proceeds are restricted, committed or assigned).
2. Restricted -fund balance category includes amounts that can be spent only for specific purposes stipulated
by constitution, external resource providers or through enabling legislation.
3. Committed -fund balance classification includes amounts that can be used only for the specific purposes
determined by a formal action of the District's governing board (the District's highest level of decision-
making authority). Such constraint remains legally binding unless removed in the same manner.
4. Assigned -fund balances classification are intended to be used by the District for specific purposes but do
not meet the criteria to be classified as restricted or committed. Assignments are made by the County
Administrator based on the County Commissioner's direction.
5. Unassi ned-fund balance is the residual classification for the District's general fund and includes all
spendable amounts not contained in the other classifications.
The District reduces restricted amounts first when expenditures are incurred for purposes for which both restricted
and unrestricted (committed, assigned or unassigned) amounts are available. The District reduces committed
amounts first, followed by assigned amounts and then unassigned amounts when expenditures are incurred for the
purpose for which amounts in any of those unrestricted fund balance classifications could be used.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions that effect certain reported amounts
and disclosures. Accordingly, actual results could differ from these estimates.
Tax Abatements
The District participates in a number of property tax abatement programs. All such abatement programs are
authorized by Oregon revised statutes or by local resolution or ordinance. Some programs are initiated by the
District and others by other local governments and state agencies. As the amount of taxes abated during fiscal
year 2019 is immaterial, no additional disclosure has been made.
Note 2 - Cash and Investments
As of June 30, 2019, the District had a deposit of $9,742,635 with the Deschutes County Treasurer. All of the
District's deposits were adequately insured during the year.
Note 3 - Risk Management
In the agreement described in Note 1, Deschutes County covenants and agrees to defend, indemnify and hold and
save harmless the District and each of the District's officers, agents and employees, if any, from and against any
and all claims whatsoever that might arise against the District or any of its officers, agents or employees, if any,
by reason of any alleged act or failure to act or failure of Deschutes County to act.
18
Required Supplementary Information
As of and For the Year Ended June 30, 2019
Countywide Law Enforcement
District
A Component Unit of Deschutes County, Oregon
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Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — General Fund
Budgetary Basis
Year Ended June 30, 2019
REVENUES
Taxes - property
Investment earnings
Total revenues
EXPENDITURES
Current - departmental:
Public Safety
Not allocated to organizational units:
Contingency
Total expenditures
Net change in fund balance
Fund balance - Beginning of year
Budgeted Amounts
25,797,952 25,797,952 23,877,524 1,920,428
6,368,759 6,368,759 - 6,368,759
32,166,711 32,166,711 23,877,524 8,289,187
(6,929,466) (6,929,466) 1,953,331 8,882,797
6,929,466 6,929,466 7,835,348 905,882
Fund balance - End of year $
Unrealized gain (loss) on investments
Total fund balance, GAAP basis - End of Year
9,788,679 $ 9,788,679
1 R 725
$ 9,807,414
19
Variance
Original
with Final
Budget
Final Budget
Actual
Budget
$ 25,092,245
$ 25,092,245
$ 25,542,586
$ 450,341
145,000
145,000
288,269
143,269
25,237,245
25,237,245
25,830,855
593,610
25,797,952 25,797,952 23,877,524 1,920,428
6,368,759 6,368,759 - 6,368,759
32,166,711 32,166,711 23,877,524 8,289,187
(6,929,466) (6,929,466) 1,953,331 8,882,797
6,929,466 6,929,466 7,835,348 905,882
Fund balance - End of year $
Unrealized gain (loss) on investments
Total fund balance, GAAP basis - End of Year
9,788,679 $ 9,788,679
1 R 725
$ 9,807,414
19
Other Supplementary Information
As of and For the Year Ended June 30, 2019
Countywide Law Enforcement
District
A Component Unit of Deschutes County, Oregon
eidebailly.com
Tax Year
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Schedule of Property Tax Transactions
Year Ended June 30, 2019
Beginning
Balance and Interest
2018-2019 Levy Adjustments (Discounts)
Collections
Taxes
Receivable
June 30, 2019
2018-2019
$ 26,234,444
$ (24,156) $
(664,100)
$ 25,208,864
$ 337,323
2017-2018
298,198
(829)
13,451
178,359
132,462
2016-2017
126,862
(1,094)
10,765
62,915
73,618
2015-2016
63,591
(795)
10,654
42,681
30,769
2014-2015
24,086
(282)
7,069
24,838
6,035
2013-2014
2,909
(101)
659
1,850
1,617
2012-2013
1,803
(24)
367
911
1,236
2011-2012
1,167
(16)
324
749
726
Prior
4,662
(356)
604
1,158
3,752
Totals $ 26,757,722 $ (27,652) $ (620,207)
Adjustments for Accruals
June 30, 2018
June 30, 2019
Other tax distribution
Modified accrual basis tax revenue
25,522,326 $ 587,538
(55,277)
64,780
10,758
$ 25,542,586
20
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards
To the Deschutes County Commissioners
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities and the general fund of Countywide Law Enforcement District (the District), a component unit
of Deschutes County, Oregon, as of and for the year ended June 30, 2019, and the related notes to the
financial statements, which collectively comprise the District's basic financial statements, and have issued
our report thereon dated November 18, 2019.
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.
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
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.
7
�Aa� .4 Z. 7g:�
Boise, Idaho
November 18, 2019
22
Countywide Law Enforcement
A Component Unit of Deschutes County, Oregon
Audit Comments and Disclosures Required by State Regulations
June 30, 2019
Audit Comments and Disclosures Required by State Regulations
Oregon Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of
Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State Board
of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required in audit
reports. The required statements and schedules are set forth in the preceding sections of this report. Required
comments and disclosures related to the audit of such statements and schedules are set forth in the following
pages.
23
EideBailly
CPAs & BUSINESS ADVISORS
Independent Auditor's Report Required by Oregon State Regulations
To Deschutes County Commissioners
Countywide Law Enforcement District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
We have audited the basic financial statements of Countywide Law Enforcement District (the District), a
component unit of Deschutes County, Oregon, as of and for the year ended June 30, 2019, and have
issued our report thereon dated November 18, 2019. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to the financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States and the standards applicable to the financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States and the provisions of the Minimum Standards for
Audits of Oregon Municipal Corporations, prescribed by the Secretary of State. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the basic financial
statements are free from material misstatement.
Compliance
As part of obtaining reasonable assurance about whether the District's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, including provisions of Oregon Revised Statutes as specified in Oregon
Administrative Rules 162-010-0000 through 162-010-0330 of the Minimum Standards for Audits of
Oregon Municipal Corporations, noncompliance with which could have a direct and material effect on the
determination of financial statements amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
We performed procedures to the extent we considered necessary to address the required comments and
disclosures which included, but were not limited to the following:
OAR
Section
162-010-0000
Preface
162-010-0010
Definitions
162-010-0020
General Requirements
162-010-0030
Contracts
162-010-0050
Financial Statements
162-010-0115
Required Supplementary Information (RSI)
162-010-0120
Supplementary Financial Information
162-010-0130
Schedule of Revenues, Expenditures / Expenses, and Changes in Fund
Balances / Net Position, Budget and Actual (Each Fund)
162-010-0140
Schedule of Accountability for Independently Elected Officials
162-010-0190
Other Financial or Statistical Information
162-010-0200
Independent Auditor's Review of Fiscal Affairs
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Instances of Non -
Compliance Identified
Not Applicable
Not Applicable
None Noted
None Noted
None Noted
None Noted
None Noted
None Noted
Not Applicable
Not Applicable
None Noted
24
C�7�N
Section
162-010-0230
Accounting Records and Internal Control
162-010-0240
Public Fund Deposits
162-010-0250
Indebtedness
162-010-0260
Budget
162-010-0270
Insurance and Fidelity Bonds
162-010-0280
Programs Funded from Outside Sources
162-010-0295
Highway Funds
162-010-0300
Investments
162-010-0310
Public Contracts and Purchasing
162-010-0315
State School Fund
162-010-0316
Public Charter Schools
162-010-0320
Other Comments and Disclosures
162-010-0330
Extensions of Time to Deliver Audit Reports
Instances of Non -
Compliance Identified
None Noted
None Noted
Not Applicable
None Noted
None Noted
Not Applicable
Not Applicable
None Noted
Not Applicable
Not Applicable
Not Applicable
Not Applicable
Not Applicable
In connection with our testing nothing came to our attention that caused us to believe the District was not
in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including
provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010-0000
through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the District's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the District's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not yet been identified.
This report is intended solely for the information and use of the Deschutes County Commissioners and
management of Countywide Law Enforcement District and the Oregon Secretary of State and is not
intended to be and should not be used by anyone other than these parties.
V WX -19; - - -4-1 F, L W�.
For Eide Bailly LLP
Boise Idaho
November 18, 2019
25