HomeMy WebLinkAboutRural Law Enforcement 2019 Financial StatementsFinancial Statements
As of and For the Year Ended June 30, 2019
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
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Rural 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 Governmental Fund Balance Sheet to the Statement of Net Position ...............................
12
Statement of Revenues, Expenditures and Changes in Fund Balance — General Fund .......................................
13
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of
Governmental Funds to the Statement of Activities............................................................................................
14
Notesto Financial Statements..............................................................................................................................
15
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund.........
19
Other Supplementary Information
Schedule of Property Tax Transactions...............................................................................................................
20
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government
AuditingStandards...................................................................................................................................................
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
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and the general
fund of Rural Law Enforcement District (the District), a component unit of Deschutes County, Oregon, as
of and for the year ended June 30, 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 schedule of revenues, expenditures and changes in fund balances — budget
and actual — general fund (budgetary schedule), as listed in the table of contents, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to management's
discussion and analysis and the budgetary schedule in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management's
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on
management's discussion and analysis or the budgetary schedule because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The budgetary schedule described above is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The budgetary schedule has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the budgetary schedule is fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
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 solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the District's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering the
District's internal control over financial reporting and compliance.
Report on Other Legal and Regulatory Requirements
In accordance with the Minimum Standards of Audits of Oregon Municipal Corporations, we have issued
our report dated 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
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2019
As management of Rural Law Enforcement District (the District), a component unit of Deschutes County,
Oregon, we offer readers of the District's financial statements this narrative overview and analysis of the financial
activities of the District for the fiscal year ended June 30, 2019.
Financial Highlights
• The assets of Rural Law Enforcement District exceeded its liabilities at June 30, 2019, by $7,357,477, all
of which is unrestricted.
• As of June 30, 2019, Rural Law Enforcement District's governmental fund reported an ending fund
balance of $7,135,202.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Rural Law Enforcement District's basic
financial statements. These basic financial statements comprise three components: 1) government -wide financial
statements; 2) fund financial statements and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of Rural Law
Enforcement District's finances, in a manner similar to a private -sector business.
The Statement of Net Position presents information on all of Rural Law Enforcement District's assets and
liabilities, with the difference between the two reported as Net Position. Over time, increases or decreases in Net
Position may serve as a useful indicator of whether the financial position of Rural Law Enforcement District is
improving or deteriorating.
The Statement of Activities presents information showing how Rural Law Enforcement District's Net Position
changed during the fiscal year ended June 30, 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 Rural Law Enforcement District that are supported primarily by taxes and investment earnings.
The governmental activity of Rural Law Enforcement District is public safety.
The government -wide financial statements can be found on pages 9-10 of this report.
0
Rural 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. Rural Law Enforcement District, like other state and local government
entities, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. The
Fund of Rural Law Enforcement District is classified as a governmental fund.
Governmental Funds - Governmental funds are used to account for essentially the same functions as governmental
activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand
the long-term impact of the government's near-term financing decisions. A reconciliation from the Governmental
Funds Balance Sheet to the Government -wide Statement of Net Position and a reconciliation from the
Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances to the Government -
wide Statement of Activities have been included in this report.
Rural Law Enforcement District reported activity in one governmental fund during the fiscal year ended June 30,
2019.
Rural Law Enforcement District adopts an annual budget for its fund. A budgetary comparison statement has been
provided to demonstrate compliance with the annual budget.
The Basic Governmental Fund Financial Statements can be found on pages 11-14 of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government -wide and fund financial statements. The notes to the financial statements can be found on pages 15-
18 of this report.
Government -wide Financial Analysis
Net Position, at a specific point in time, serves as a useful indicator of an entity's financial position. In the case of
Rural Law Enforcement District, assets exceed liabilities by $7,357,477 at June 30, 2019. All of the Net Position
may be used to meet the District's on-going obligations to citizens and creditors.
As of June 30, 2019, Rural Law Enforcement District reports a positive balance in Net Position for the
government as a whole and for the governmental activities.
Rural Law Enforcement District's Net Position increased by $62,368 during the year ended June 30, 2019.
Rural 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 $ 7,108,017 $ 7,059,179 $ 48,838
Property taxes receivable 249,460 235,929 13,531
Total assets 7,357,477 7,295,108 62,368
Net Position
Unrestricted 7,357,477 7,295,108 62,368
Total net position $ 7,357,477 $ 7,295,108 $ 62,368
Statements of Activities
Year Ended Year Ended
June 30, 2019 June 30, 2018 Change
General Revenues
Property taxes levied for general purposes $ 10,363,285 $ 10,226,102 $ 137,183
Earnings on investments 240,753 102,341 138,412
Total revenues 10,604,038 10,328,443 275,595
Expenses
Public safety
Changes in Net Position
Net Position, Beginning of Year
Net Position, End of Year
10,541,670 9,785,172 756,498
62,368 543,271 (480,903)
7,295,108 6,751,837 543,271
$ 7,357,477 $ 7,295,108 $ 62,368
2
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2019
Governmental Activities
Governmental activities, the only activity type of Rural Law Enforcement District, increased Net Position by
$62,368 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
Rural Law Enforcement District uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
Governmental Fund - The focus of Rural Law Enforcement District's governmental fund is to provide information
on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing Rural
Law Enforcement District's financing requirements. In particular, unassigned fund balance may serve as a useful
measure of a government's net resources available for spending as of the end of the fiscal year.
As of June 30, 2019, $7,135,202 is the reported ending fund balance for Rural Law Enforcement District's
governmental fund.
One measure of liquidity is the relationship of the unassigned balance to the Fund's total revenues. The fund
balance as of June 30, 2019, for the General Fund is 67% of its total General Fund Fiscal Year 2019 revenues.
The fund balance of the Rural Law Enforcement District's General Fund increased by $50,902 during the fiscal
year ended June 30, 2019.
General Fund Budgetary Highlights
There were no differences between the Rural Law Enforcement District's General Fund budget as originally
adopted and the final amended budget. Actual revenues exceeded estimated revenues by $231,521. Property tax
revenue exceeded the amount estimated by $158,220. The District contracts with Deschutes County for its
operational activities. The amount paid pursuant to the contract is based on the actual cost of providing such
services, $10,541,670 which is $357,121 less than the amount appropriated.
Capital Asset and Debt Administration
Capital Assets
Rural Law Enforcement District owns no capital assets.
Long-term Debt
Rural Law Enforcement District has no long-term debt; therefore the District has not been separately rated by any
of the bond rating agencies.
Key Economic Factors and Budgets Information for the Future
The tax rate approved by the voters will allow the District to maintain sufficient reserves to finance its operations
without needing to issue tax anticipation notes.
7
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Management's Discussion and Analysis
June 30, 2019
Requests for Information
This financial report is designed to provide a general overview to those parties interested in Rural Law
Enforcement District's finances. Questions concerning any of the information provided in this report or requests
for additional information should be addressed to Deschutes County Finance Department, PO Box 6005, Bend,
Oregon, 97708.
Assets
Cash and investments
Property taxes receivable
Total assets
Net Position
Unrestricted
Total net position
See Notes to Financial Statements
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Statement of Net Position
June 30, 2019
Primary
Government -
Governmental
Activities
$ 7,108,017
249,460
7,357,477
7,357,477
$ 7,357,477
Rural 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 $ 10,541,670
Total expenses 10,541,670
General Revenues
Property taxes levied for general purposes 10,363,285
Earnings on investments 240,753
Total general revenues 10,604,038
Changes in Net Position 62,368
Net Position, Beginning of Year 7,295,108
Net Position, End of Year $ 7,357,477
See Notes to Financial Statements 10
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Balance Sheet — General Fund
June 30, 2019
Assets
Cash and investments $ 7,108,017
Property taxes receivable 249,460
Total assets $ 7,357,477
Deferred Inflow of Resources
Unavailable revenue - property taxes $ 222,275
Fund Balance
Unassigned 7,135,202
Total fund balance 7,135,202
Total deferred inflow of resources and fund balance $ 7,357,477
See Notes to Financial Statements 11
Fund Balance
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position
June 30, 2019
$ 7,135,202
Amounts reported for governmental activities in the Statement of Net Position is 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. 222,275
Net Position of Governmental Activities $ 7,357,477
See Notes to Financial Statements 12
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Statement of Revenues, Expenditures and Changes in Fund Balance — General Fund
Year Ended June 30, 2019
Revenues
Property taxes $ 10,351,818
Interest 240,753
Total revenues 10,592,571
Expenditures
Public safety 10,541,670
Total expenditures 10,541,670
Net Change in Fund Balance 50,902
Fund Balance, Beginning of Year 7,084,300
Fund Balance, End of Year $ 7,135,202
See Notes to Financial Statements 13
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds
to the Statement of Activities
Year Ended June 30, 2019
Net Change in Fund Balances - Total Governmental Funds $ 50,902
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. 11,467
Change in Net Position of Governmental Activities $ 62,368
See Notes to Financial Statements 14
Rural 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
Rural Law Enforcement District (the District), a component unit of Deschutes County, Oregon, an ORS Chapter
451 municipal corporation of the State of Oregon, was approved and created by election of the Deschutes County
(the County) voters on November 7, 2006, for the purpose of providing a permanent source of funding for patrol
services in those portions of Deschutes County not served by city or special service district law enforcement
departments. The District entered into an intergovernmental agreement, April 16, 2007, with Deschutes County
whereby the County, through the Deschutes County Sheriff s Office, is contracted to perform certain law
enforcement functions within its boundaries. The Deschutes County Board of Commissioners is the governing
body of the District.
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities)
report information on all of the activities of the District. Governmental activities, which normally are supported
by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a
significant extent on fees and charges for support. The District has no business -type activities or fiduciary funds.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or
segment. Program revenues include: 1) charges to customers who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment; and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not
properly included among program revenues are reported instead as general revenues.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government -wide financial statements are prepared using the economic resources measurement focus and the
accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is
incurred. Property taxes are recognized as revenues in the year for which they are levied.
Governmental fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and
available. Revenues are considered to be available when they are collectible within the current period or soon
enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be
available if they are collected within sixty days of the end of the current fiscal period. Revenues received after this
period, are considered unavailable. Expenditures are recorded when a liability is incurred, as under accrual
accounting.
Property taxes associated with the current fiscal period are considered to be susceptible to accrual and so have
been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable
and available only when cash is received by the District.
15
Rural 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 are its only sources of revenue. Expenditures are for public safety pursuant to the
agreement described in Note 1.
Budget Policy
The District meets the requirement of state law by preparing a budget for its funds. The budget is prepared on the
modified accrual basis of accounting. Program activity (public safety) is the only budgetary level of control
established by resolution. The detailed budget document provides specific detailed information for the above
mentioned program. Unexpected additional resources may be added to the budget through the use of a
supplemental budget and appropriations resolution. Original and supplemental budgets may be modified by the
use of appropriation transfers between the levels of control. Appropriations lapse as of year-end.
Reporting Entity
The District's financial statements include the accounts of all District operations. The criteria for including
organizations as component units within the District's reporting entity, as set forth in GASB 61, The Financial
Reporting Entity: Omnibus, include whether:
• The organization is legally separate (can sue and be sued in its own name).
• The District holds the corporate powers of the organization.
• The District appoints a voting majority of the organizations' board.
• The District is able to impose its will on the organization.
• The organization has the potential to impose a financial benefit/burden on the District.
• There is a fiscal dependency by the organization on the District.
There were no specific agencies which required consideration under the criterion in the current fiscal year for
inclusion in the District's reporting entity.
Under the above criterion, the District is includable as a component unit in the financial statements of Deschutes
County, since the District's governing board is comprised of the Deschutes County Commissioners and there is a
fiscal dependency between the District and the County.
Cash and Investments
Cash and investments are comprised of funds held by the Deschutes County Treasurer, in the Deschutes County
cash and investment pool. The District's cash and investments participate in this pool rather than specific,
identifiable securities. The District's share of County pooled cash and investments can be drawn upon demand,
and therefore, the entire amount on deposit with the County is considered cash and cash equivalents. Interest
earned on pooled investments is allocated monthly based on the average daily balance of the District in relation to
total investments in the pool. It is not practical to determine the investment risk, collateral, or insurance coverage
for the District's share of these pooled investments. This pool generally includes demand deposits, investments in
the Oregon State Treasurer's Local Government Investment Pool (LGIP), obligations of the United States
Treasury and United States Government agencies and instrumentalities, certain high-grade commercial paper and
corporate bonds. This policy is in accordance with ORS 294.035 which specifies the types of investments
authorized for municipal corporations.
16
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2019
State statutes authorize the County to invest in obligations of the U.S. Treasury, commercial paper, corporate
bonds, municipal bonds, banker's acceptances, repurchase agreements, and the Oregon State Treasurer's Local
Government Investment Pool (LGIP). Investments for the County, as well as for its component units, are reported
at fair value. The LGIP operates in accordance with appropriate state laws and regulations.
Information about the pooled cash and investments is included in the County's annual financial report and may be
obtained by contacting the Deschutes County Finance Department, PO Box 6005, Bend, Oregon, 97708.
Property Taxes/Unavailable Revenue
Property taxes are assessed on a July 1 - June 30 fiscal year basis. The taxes are levied as of July 1 based on
assessed values as of January 1. Property tax payments are due in three equal installments, on November 15,
February 15 and May 15. A discount of 3% is available if taxes are paid in full by November 15 and a discount of
2% on the unpaid balance is available if taxes are paid in full by February 15.
Property taxes attach as an enforceable lien July 1 and are considered delinquent if not paid by the following May
15. The Deschutes County Treasurer is the tax collection agent for the District. The District's 2019 fiscal year tax
levy was $10,608,147.
Tax revenue is considered available for expenditure upon receipt by the County, which serves as the intermediary
collecting agency. Uncollected property taxes are shown on the governmental balance sheet as receivables.
Collections within sixty days subsequent to year-end have been accrued and the remaining taxes receivable are
recorded as deferred revenue on the modified accrual basis of accounting since they are not deemed available to
finance operations of the current period.
Fund Balances
The Governmental Accounting Standards Board has issued Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions (GASB 54), which defines the different types of fund balances that a
governmental entity must use for financial reporting purposes.
GASB 54 requires the fund balance amounts to be properly reported within one of the fund balance categories
listed below:
1. Nonspendable such as fund balance associated with inventories, prepaids, long-term loans and notes
receivable, and property held for resale (unless the proceeds are restricted, committed or assigned).
2. Restricted fund balance category includes amounts that can be spent only for specific purposes stipulated
by constitution, external resource providers or through enabling legislation.
17
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2019
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. Unassijzned 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 $7,108,017 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
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
eidebailly.com
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual - General Fund
Budgetary Basis
Year Ended June 30, 2019
Expenditures
Current - departmental
Public safety
Net allocated to organizational units:
Contingency
Total expenditures
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
10,898,791 10,898,791 10,541,670 357,121
6,323,148 6,323,148 - 6,323,148
17,221,939 17,221,939 10,541,670 6,680,269
(6,908,341) (6,908,341) 3,450 6,911,791
6,908,341 6,908,341 7,118,495 210,154
$ - $ - 7,121,945 $ 7,121,945
13,257
$ 7,135,202
19
Budget Amounts
Actual
Variance with
Original Final
Amounts
Final Budget
Revenues
Taxes - property
$ 10,193,598 $ 10,193,598
$ 10,351,818
$ 158,220
Investment earnings
120,000 120,000
193,301
73,301
Total revenues
10,313,598 10,313,598
10,545,119
231,521
Expenditures
Current - departmental
Public safety
Net allocated to organizational units:
Contingency
Total expenditures
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
10,898,791 10,898,791 10,541,670 357,121
6,323,148 6,323,148 - 6,323,148
17,221,939 17,221,939 10,541,670 6,680,269
(6,908,341) (6,908,341) 3,450 6,911,791
6,908,341 6,908,341 7,118,495 210,154
$ - $ - 7,121,945 $ 7,121,945
13,257
$ 7,135,202
19
Other Supplementary Information
As of and for the Year Ended June 30, 2019
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
eidebailly.com
Tax Year
Rural 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 Lew Adjustments (Discounts)
Collections
Taxes
Receivable
June 30, 2019
2018-2019
$ 10,608,147
$ (9,768)
$ (268,535)
$ 10,193,443 $
136,401
2017-2018
133,576
(371)
6,025
79,895
59,334
2016-2017
56,798
(490)
4,819
28,168
32,960
2015-2016
28,204
(353)
4,725
18,930
13,647
2014-2015
11,483
(134)
3,370
11,841
2,878
2013-2014
1,391
(48)
315
885
773
2012-2013
878
(11)
179
443
602
2011-2012
587
(8)
163
377
365
Prior
3,013
(187)
386
712
2,500
Totals $ 10,844,076 $ (11,370) $ (248,552)
Adjustments for Accruals
June 30, 2018
June 30, 2019
Other tax distribution
Modified accrual basis tax revenue
10,334,694 $ 249,460
(25,121)
27,185
15,060
$ 10,351,818
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
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities and the general fund of Rural Law Enforcement District (the District), a component unit of
Deschutes County, Oregon, as of and for the year ended June 30, 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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877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE
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.
Z
Boise, Idaho
November 18, 2019
22
Rural Law Enforcement District
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
Rural Law Enforcement District
A Component Unit of Deschutes County, Oregon
Bend, Oregon
We have audited the basic financial statements of Rural Law Enforcement District (the District), a
component unit of Deschutes County, Oregon, as of and for the year ended June 30, 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 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:
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877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE
Instances of Non -
OAR
Section
Compliance Identified
162-010-0000
Preface
Not Applicable
162-010-0010
Definitions
Not Applicable
162-010-0020
General Requirements
None Noted
162-010-0030
Contracts
None Noted
162-010-0050
Financial Statements
None Noted
162-010-0115
Required Supplementary Information (RSI)
None Noted
162-010-0120
Supplementary Financial Information
None Noted
162-010-0130
Schedule of Revenues, Expenditures / Expenses, and Changes in Fund
None Noted
Balances / Net Position, Budget and Actual (Each Fund)
162-010-0140
Schedule of Accountability for Independently Elected Officials
Not Applicable
162-010-0190
Other Financial or Statistical Information
Not Applicable
162-010-0200
Independent Auditor's Review of Fiscal Affairs
None Noted
162-010-0230
Accounting Records and Internal Control
None Noted
162-010-0240
Public Fund Deposits
None Noted
162-010-0250
Indebtedness
Not Applicable
162-010-0260
Budget
None Noted
What inspires you, inspires us. I eidebailly.com 24
877 W. Main St., Ste. 800 1 Boise, ID 83702-5858 1 T 208.344.7150 1 F 208.344.7435 1 EOE
In connection with our testing nothing came to our attention that caused us to believe the District was not
in substantial compliance with certain provisions of laws, regulations, contracts, and grants, including
provisions of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010-0000
through 162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the District's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the District's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not yet been identified.
This report is intended solely for the information and use of the Deschutes County Commissioners and
management of Rural Law Enforcement District and the Oregon Secretary of State and is not intended to
be and should not be used by anyone other than these parties.
t
For Eide Bailly LLP
Boise, Idaho
November 18, 2019
25
Instances of Non -
OAR
Section
Compliance Identified
162-010-0270
Insurance and Fidelity Bonds
None Noted
162-010-0280
Programs Funded from Outside Sources
Not Applicable
162-010-0295
Highway Funds
Not Applicable
162-010-0300
Investments
None Noted
162-010-0310
Public Contracts and Purchasing
Not Applicable
162-010-0315
State School Fund
Not Applicable
162-010-0316
Public Charter Schools
Not Applicable
162-010-0320
Other Comments and Disclosures
Not Applicable
162-010-0330
Extensions of Time to Deliver Audit Reports
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 Rural Law Enforcement District and the Oregon Secretary of State and is not intended to
be and should not be used by anyone other than these parties.
t
For Eide Bailly LLP
Boise, Idaho
November 18, 2019
25