HomeMy WebLinkAboutDeschutes County Extension and 4-H County Service District FY23 Issued Financials
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Financial Statements
For the Fiscal Year Ended June 30, 2023
Deschutes County Extension
and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Prepared by:
Deschutes County Finance Department
Robert Tintle, MPA - Chief Financial Officer
Jana Cain, CPA - Controller
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Table of Contents
June 30, 2023
INTRODUCTORY SECTION
3 Listing of Principal Officials
FINANCIAL SECTION
4 Report of Independent Auditors
8 Management’s Discussion and Analysis
Financial Statements
13 Statement of Net Position
14 Statement of Activities
15 Balance Sheet – Governmental Fund – General Fund
16 Reconciliation of Governmental Fund Balance Sheet for the General Fund to the Statement
of Net Position
17 Statement of Revenues, Expenditures, and Changes in Fund Balance – General Fund
18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance
of General Fund to the Statement of Activities
19 Notes to Financial Statements
Required Supplementary Information
29 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual –
General Fund
Other Supplementary Information
31 Schedule of Property Tax Transactions
AUDIT COMMENTS AND GOVERNMENT AUDITING STANDARDS SECTIONS
Government Auditing Standards
32 Report of Independent Auditors on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Audit Comments
34 Audit Comments and Disclosures Required by State Regulations
35 Report of Independent Auditors Required by Oregon State Regulations
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Listing of Principal Officials
As of June 30, 2023
ELECTED OFFICIALS
Board Of County Commissioners
Name Position Term Expiration
Anthony DeBone, Chair Position 1 January 4, 2027
Patti Adair, Vice Chair Position 3 January 4, 2027
Philip Chang Position 2 January 6, 2025
Other Elected Officers
Name Office Term Expiration
Scot Langton County Assessor January 4, 2027
Steve Dennison County Clerk January 4, 2027
Shane Nelson County Sheriff January 6, 2025
William Kuhn County Treasurer January 4, 2027
Steve Gunnels County District Attorney January 4, 2027
Charles Fadeley Justice of the Peace January 1, 2029
APPOINTED OFFICIALS
Nick Lelack County Administrator
David Doyle County Counsel
Robert Tintle Chief Financial Officer
David Givans County Internal Auditor
Deschutes County Administrative Offices
1300 NW Wall Street, Suite 200
Bend, Oregon 97703
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Report of Independent Auditors
Deschutes County Commissioners
Deschutes County Extension and 4-H County Service District
(A Component Unit of Deschutes County, Oregon)
Bend, Oregon
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities and the major fund of the
Deschutes County Extension and 4-H County Service District (the District), a component unit of
Deschutes County, Oregon, as of and for the year ended June 30, 2023, and the related notes to the
financial statements, which collectively comprise the District’s basic financial statements as listed in
the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities and the major fund of the
District, as of June 30, 2023, and the respective changes in financial position for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America (GAAS) and the standards applicable to financial audits contained in Government
Auditing Standards (Government Auditing Standards), issued by the Comptroller General of the
United States. Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of the District and to meet our other ethical responsibilities, in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Financial Reporting Entity
As discussed in Note 1, the financial statements present only the District and do not purport to, and
do not, present fairly the financial position of Deschutes County, Oregon as of June 30, 2023, or the
changes in its financial position for the year then ended in accordance with accounting principles
generally accepted in the United States of America. Our opinions are not modified with respect to this
matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
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In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the District’s
ability to continue as a going concern for twelve months beyond the financial statement date,
including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor's report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS
and Government Auditing Standards will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood
that, individually or in the aggregate, they would influence the judgment made by a reasonable user
based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the District's internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the District’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit, significant audit findings, and certain internal
control—related matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and schedule of revenues, expenditures, and changes in fund
balance – budget and actual – General Fund (budgetary comparison), as listed in the table of
contents, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the management’s discussion and
analysis in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the management’s
discussion and analysis because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District’s basic financial statements. The budgetary comparison information
is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The budgetary
comparison information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures
in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the budgetary comparison information is fairly stated, in all material respects, in relation to
the basic financial statements as a whole.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District's basic financial statements. The schedule of property tax
transactions, as listed in the table of contents, is presented for purposes of additional analysis and is
not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the schedule of property tax
transactions is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
Other Information
Management is responsible for the other information included in the financial statements. The other
information comprises the introductory section but does not include the basic financial statements
and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the
other information, and we do not express an opinion or any form assurance thereon.
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In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report November 30,
2023 on our consideration of the District's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the effectiveness of the District's internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the District's internal control over financial reporting and compliance.
Other Reporting Required by Minimum Standards for Audits of Oregon Municipal
Corporations
In accordance with the Minimum Standards for Audits of Oregon Municipal Corporations, we have
also issued our report dated November 30, 2023, on our consideration of the District’s compliance
with certain provisions of laws, regulations, contracts, and grant agreements, including the provisions
of Oregon Revised Statutes as specified in Oregon Administrative Rules 162-010-0000 through
162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations. The purpose
of that report is to describe the scope of our testing of compliance and the results of that testing and
not to provide an opinion on compliance.
Amanda McCleary-Moore, Partner
For Moss Adams LLP
Eugene, Oregon
November 30, 2023
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2023
As management of Deschutes County Extension and 4-H County Service District (the District), a component
unit of Deschutes County, Oregon, we offer readers of the District's financial statements this narrative
overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2023.
Financial Highlights
The assets of Deschutes County Extension and 4-H County Service District exceeded its liabilities as
of June 30, 2023, by $1,461,488. Of this amount, $361,816 is unrestricted.
Total net position decreased by $28,398 from June 30, 2022 to June 30, 2023.
As of June 30, 2023, Deschutes County Extension and 4-H County Service District's governmental
fund reported an ending fund balance of $360,718 or 54% of total general fund revenues for fiscal
year 2023.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the 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 financial statements. This report also contains
other supplementary information in addition to the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of
Deschutes County Extension and 4-H County Service District's finances in a manner similar to a private-
sector business.
The Statement of Net Position presents information on all of Deschutes County Extension and 4-H County
Service District's assets and liabilities, with the difference between the two reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial position
of Deschutes County Extension and 4-H County Service District is improving or deteriorating.
The Statement of Activities presents information showing how Deschutes County Extension and 4-H County
Service District's net position changed during the fiscal year ended June 30, 2023. Changes in net position
are reported when the underlying event giving rise to the change occurs, regardless of the timing of the
related cash flows. Thus, revenues and expenses are reported in this statement for some items, for
example, property taxes and accrued vacation that will result in cash flows in future fiscal periods.
Each of these government-wide financial statements, Statement of Net Position and Statement of Activities,
show the functions of the District that are supported primarily by taxes and inter-governmental revenues
(governmental activities). The governmental activity of Deschutes County Extension and 4-H County Service
District is providing agricultural education extension services to the residents of Deschutes County, Oregon.
The government-wide financial statements can be found on pages 13-14 of this report.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2023
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The District, like other state and local government entities,
uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The
fund utilized by Deschutes County Extension and 4-H County Service District is classified as a governmental
fund.
Governmental funds are used to account for the same functions as governmental activities in the government-
wide financial statements. However, unlike the government-wide financial statements, governmental fund
financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a
government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing so,
readers may better understand the long-term impact of the government's near-term financing decisions. A
reconciliation from the Governmental Fund Balance Sheet for the General Fund to the Government-wide
Statement of Net Position and a reconciliation from the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances for the General Fund to the Government-wide Statement of
Activities have been included in this report.
The District reported activity in one governmental fund during the fiscal year ended June 30, 2023.
Information is presented in the Governmental Fund Balance Sheet for the General Fund and in the
Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balance for the General
Fund.
The 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 General Fund Financial Statements can be found on pages 15-18 of this report.
Notes to 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 financial statements can be found on pages
19-27 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 Deschutes County Extension and 4-H County Service District, assets exceed liabilities by $1,461,488
as of June 30, 2023.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2023
Government-wide Financial Analysis (Continued)
Approximately 75% of the District's net position represents its investment in capital assets (building and
equipment). Deschutes County Extension and 4-H County Service District uses these capital assets to
provide services to residents and this net position is not available for future spending.
The remaining 25%, $361,816, of Deschutes County Extension and 4-H County Service District's net position
may be used to meet the District's on-going obligations to residents and creditors.
As of June 30, 2023, Deschutes County Extension and 4-H County Service District reports positive balances in
net position (net investment in capital assets and unrestricted) for the government as a whole and for the
governmental activities. Deschutes County Extension and 4-H County Service District's net position
decreased by $28,398 during the year ended June 30, 2023.
A comparison of the summarized government-wide statements to the prior year is as follows:
June 30, 2023 June 30, 2022 Change
ASSETS
Current assets 477,720$ 399,287$ 78,433$
Capital assets 1,802,218 1,844,140 (41,922)
Total assets 2,279,938 2,243,427 36,511
LIABILITIES
Current liabilities 115,904 - 115,904
Long-term liabilities 702,546 753,541 (50,995)
Total liabilities 818,450 753,541 64,909
NET POSITION
Net investment in capital assets 1,099,672 1,090,600 9,072
Unrestricted 361,816 399,286 (37,470)
Total net position 1,461,488$ 1,489,886$ (28,398)$
Statements of Net Position
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2023
Government-wide Financial Analysis (Continued)
Governmental Activities
Governmental activities decreased the District's net position by $28,398 during the fiscal year ended
June 30, 2023.
Financial Analysis of the District's Funds
Deschutes County Extension and 4-H County Service District uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements.
Governmental Funds - The focus of the District's governmental funds is to provide information on near-term
inflows, outflows and balances of spendable resources. Such information is useful in assessing the 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, 2023, $360,718 is the reported ending fund balance for the District's governmental fund, a
decrease of $13,521 from June 30, 2022. As of June 30, 2023, the unassigned fund balance for the District's
General Fund is $360,718, a decrease of $13,521. One measure of liquidity is the relationship of the
unassigned fund balance to the fund's total revenues. The unassigned fund balance as of June 30, 2023, for
the General Fund is 54% of fiscal year 2023 revenues.
Year Ended Year Ended
June 30, 2023 June 30, 2022 Change
GENERAL REVENUES
Property taxes 660,451$ 621,663$ 38,788$
Investment earnings (losses)5,825 (8,700) 14,525
Total revenues 666,276 612,963 53,313
EXPENSES
General expenses 694,674 558,396 136,278
Total expenses 694,674 558,396 136,278
Change in net position (28,398) 54,567 (82,965)
Net position - beginning of year 1,489,886 1,435,319 54,567
Net position - end of year 1,461,488$ 1,489,886$ (28,398)$
Statements of Activities
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Management’s Discussion and Analysis
June 30, 2023
General Fund Budgetary Highlights
Actual revenues exceeded budgeted revenues by $12,159. Property tax revenue increased by 5.7% from the
prior fiscal year. Actual expenditures were less than budgeted by $46,904, representing a 24.4% increase
over the prior year.
Capital Assets
The District's capital assets as of June 30, 2023, were $1,802,218, net of $366,270 of accumulated
depreciation. Capital assets includes building and equipment.
Additional information on Deschutes County Extension and 4-H County Service District's capital assets is
included in Note 3.
Amounts Owed to Primary Government
During FY 2020, the District received a lump-sum payment from the primary government to reimburse its
costs incurred from its capital infrastructure expansion. The terms provided for a 20 year repayment period,
at 1.85%, for an amount not to exceed $1,000,000. The District received $900,000 of the proceeds in FY 2020
and is not anticipated to draw on the remaining balance. Repayment also began during FY 2020. See Note 4
in the Notes to Financial statements for additional information.
Long-term Debt
The 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 District’s Assessed Valuation of Taxable Property increased from FY 2022 to FY 2023 by 5.6% to
approximately $30.5 billion.
Repayment of the Amounts Owed to Primary Government are currently set at $60,275, annually,
through FY 2037.
Requests for Information
This financial report is designed to provide a general overview to those parties interested in Deschutes
County Extension and 4-H County Service District's finances. Questions concerning any of the information
provided in this report or requests for additional information should be addressed to Deschutes County
Finance Department, 1300 NW Wall Street, Suite 200, Bend, Oregon, 97703.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Statement of Net Position
June 30, 2023
Primary
Government -
Governmental
Activities
ASSETS
Cash and investments 467,066$
Property taxes receivable 10,654
Capital assets, net of accumulated depreciation 1,802,218
Total assets 2,279,938
LIABILITIES
Accounts payable 107,287
Accrued interest payable 8,617
Amounts owed to primary government 702,546
Total liabilities 818,450
NET POSITION
Net investment in capital assets 1,099,672
Unrestricted 361,816
Total net position 1,461,488$
The notes to the financial statements are an integral part of this statement.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Statement of Activities
For the Fiscal Year Ended June 30, 2023
Primary
Government -
Governmental
Activities
EXPENSES
General services 694,674$
GENERAL REVENUES
Property taxes 660,451
Investment earnings 5,825
Total general revenues 666,276
Change in net position (28,398)
Net position - beginning of year 1,489,886
Net position - end of year 1,461,488$
The notes to the financial statements are an integral part of this statement.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Balance Sheet – Governmental Fund - General Fund
June 30, 2023
ASSETS
Cash and investments 467,066$
Property taxes receivable 10,654
Total assets 477,720$
LIABILITIES
Accounts payable 107,287$
Total liabilities 107,287
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - property taxes 9,715
Total deferred inflows of resources 9,715
FUND BALANCES
Unassigned 360,718
Total fund balances 360,718
Total liabilities, deferred inflows of resources and fund balances 477,720$
The notes to the financial statements are an integral part of this statement.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Reconciliation of Governmental Fund Balance Sheet for the General Fund to the Statement of Net Position
June 30, 2023
Fund balance for the governmental fund 360,718$
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported on the balance sheet.1,802,218
Noncurrent liabilities applicable to the District's governmental activities are not due
and payable in the current period and, accordingly, are not reported as fund liabilities.
Accrued interest payable on amounts owed to the primary government (8,617)
Amounts owed to the primary government (702,546)
Some of the District's taxes will be collected after year-end, but are not currently
available resources and, therefore, are deferred in the general fund.9,715
Net position of governmental activities 1,461,488$
The notes to the financial statements are an integral part of this statement.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Statement of Revenues, Expenditures, and Changes in Fund Balances – General Fund
For the Fiscal Year Ended June 30, 2023
REVENUES
Property taxes 659,447$
Investment earnings 5,825
Total revenues 665,272
EXPENDITURES
Current
General services 618,518
Debt service
Principal 46,419
Interest 13,856
Total expenditures 678,793
Net change in fund balances (13,521)
Fund balance - beginning of year 374,239
Fund balance - end of year 360,718$
The notes to the financial statements are an integral part of this statement.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balance of General Fund to the Statement of Activities
For the Fiscal Year Ended June 30, 2023
Net change in fund balances - general fund (13,521)$
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of
activities, the cost of those assets are allocated over their estimated useful lives and
reported as depreciation expense.
Depreciation (41,922)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds.
Unavailable revenue - services provided (16,336)
Financial resources used that are not expenses in the statement of activities.
Repayment of amounts owed to primary government 46,419
Expenses reported in the statement of activities that do not require the use of current
financial resources, and are not reported as expenditures in the governmental funds.
(Increase) decrease in accrued interest (4,042)
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 1,004
Change in net position of governmental activities (28,398)$
The notes to the financial statements are an integral part of this statement.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 1 - Principal Business Activity and Significant Accounting Policies
The District
The Deschutes County Extension and 4-H County Service District (the District), a component unit of
Deschutes County, Oregon, was established under ORS 451.410 to 451.600 on February 2, 1982, for the
purpose of providing agricultural education extension services to the residents of Deschutes County (the
County). 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 the activities of the government. Governmental activities, which normally
are supported by taxes and intergovernmental revenues, are reported separately from business-type
activities, which rely to a significant extent on fees and charges for support. The District has no business-
type activities or fiduciary funds.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include: 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment
and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or section. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred. Property taxes are recognized as revenues in the year for which they are levied. Grants
and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met. It is the District's policy to first apply restricted resources when an expense is incurred for
purposes for which both restricted and unrestricted net position is available.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
District considers revenues to be available if they are collected within sixty days of the end of the current
fiscal period. Revenues received after this period, are considered unavailable. Expenditures generally are
recorded when a liability is incurred, as under accrual accounting.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 1 - Principal Business Activity and Significant Accounting Policies (Continued)
Property taxes and intergovernmental revenue 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.
The District reports the following governmental funds:
General Fund - The General Fund is utilized to account for the transactions of the District. Property
taxes are the principal source of revenue. Expenditures are for the operation and administration of
the District.
Budget Policy
The District prepares a budget for all funds which meet the requirements of state law. The budget is
prepared on the modified accrual basis of accounting, with exceptions. The resolution authorizing
appropriations for each fund sets the level for which it is unlawful to over expend. Program, debt service,
transfers out, and contingency are the levels of control established by resolution. The detailed budget
document provides for specific detailed information for the above-mentioned categories. Unexpected
additional resources may be added to the budget through the use of a supplemental budget and
appropriations resolution. Original and supplemental budgets may be modified by the use of appropriation
transfers between the levels of control. Appropriations lapse as of year-end.
Reporting Entity
The District's financial statements include the accounts of all District operations. The District is includable as
a component unit in the financial statements of Deschutes County, Oregon since the District's governing
board is comprised of the Deschutes County Commissioners; the District also has an eight-member advisory
board that oversees operations. The District is included in the financial statements of the County as a
special revenue fund, a blended component unit.
Cash and Investments
Cash and investments are comprised of funds held by the Deschutes County Treasurer, in the County's cash
and investment pool. The District’s cash and investments participate in this pool rather than specific,
identifiable securities. The District’s share of County pooled cash and investments can be drawn upon
demand, and therefore, the entire amount on deposit with the County is considered cash and cash
equivalents. Interest earned on pooled investments is allocated monthly based on the average daily balance
of the District in relation to total investments in the pool. It is not practical to determine the investment risk,
collateral, or insurance coverage for the District’s share of these pooled investments. This pool generally
includes demand deposits, investments in the Oregon State Treasurer's Local Government Investment Pool
(LGIP), obligations of the United States Treasury and United States Government agencies and
instrumentalities, certain high-grade commercial paper and corporate bonds. This policy is in accordance
with ORS 294.035 which specifies the types of investments authorized for municipal corporations.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 1 - Principal Business Activity and Significant Accounting Policies (Continued)
State statutes authorize the County to invest in obligations of the U.S. Treasury, commercial paper,
corporate bonds, municipal bonds, banker’s acceptances, repurchase agreements, and the State Treasurer’s
Local Government Investment Pool (LGIP). Investments for the County, as well as for its component units,
are reported at fair value. The LGIP operates in accordance with appropriate state laws and regulations.
Information about the pooled cash and investments is included in the County’s annual comprehensive
financial report and may be obtained by contacting the Deschutes County Finance Department, 1300 NW
Wall Street, Suite 200, Bend, Oregon, 97703.
Capital Assets
Capital assets, which include equipment and building, are reported in the government-wide financial
statements. In the governmental fund statements, capital assets are charged to expenditures as purchased.
Capital assets are recorded at historical cost. Donated assets are recorded at acquisition value as of the date
of the donation.
Capital assets are defined by the District as assets with an initial cost of $5,000 or more and an estimated
actual life of more than one year. Additions or improvements and other capital outlays that significantly
extend the useful life of an asset, or that significantly increase the capacity of an asset, are capitalized. Other
costs incurred for repairs and maintenance are expensed as incurred. Major outlays for capital assets and
improvements are capitalized as projects are constructed.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net Position and is calculated on the straight-line
basis over the following estimated useful lives:
Assets Years
Building and improvements 10-50 years
Equipment 10 years
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.
Deschutes County is the tax collection agent for the District. The District's 2023 fiscal year tax levy was
$676,371.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 1 - Principal Business Activity and Significant Accounting Policies (Continued)
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 General Fund balance sheet as
receivables. Collections within 60 days subsequent to year-end have been recognized as revenue and the
remaining taxes receivable are recorded as unavailable revenue on the modified accrual basis of accounting
since they are not deemed available to finance operations of the current period.
Net Position
Net position represents the difference between assets and liabilities. The District reports the following
subcategories of net position:
Net investment in capital assets represents the difference between capital assets less accumulated
depreciation, and the amounts owed to primary government for capital asset financing.
Unrestricted represents all other net positions that are not restricted and do not meet the definition
of net investment in capital assets.
Fund Balance Reporting
The Governmental Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental
Fund Type Definitions (GASB 54), defines the different types of fund balances that a governmental entity must
use for financial reporting purposes.
GASB 54 requires the fund balance amounts to be properly reported within one of the fund balance
categories listed below:
Nonspendable, such as fund balance associated with inventories, prepaids, long-term loans and
notes receivable, and property held for resale (unless the proceeds are restricted, committed or
assigned).
Restricted fund balance category includes amounts that can be spent only for specific purposes
stipulated by constitution, external resource providers or through enabling legislation.
Committed fund balance classification includes amounts that can be used only for the specific
purposes determined by a formal action of the District's governing board (the Districts’ highest level
of decision-making authority). Once adopted, the limitation imposed by the ordinance remains in
place until a similar action is taken (the adoption of another ordinance) to remove or revise the
limitation.
Assigned fund balance classification is intended to be used by the government for specific purposes
but do not meet the criteria to be classified as restricted or committed. Assignments are made by
the County Administrator based on the County Commissioner’s direction.
Unassigned fund balance is the residual classification for the District’s general fund and includes all
spendable amounts not contained in the other classifications.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 1 - Principal Business Activity and Significant Accounting Policies (Continued)
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.
Note 2 - Cash and Investments
As of June 30, 2023, the District had a deposit of $467,066 with the Deschutes County Treasurer. All of the
District's deposits were adequately insured or collateralized by securities held by the pledging financial
institution in the financial institution’s name during the year.
Note 3 - Capital Assets
Capital asset activity for the fiscal year ended June 30, 2023, is as follows:
Depreciation expense of $41,922 was charged to the general services expense.
Balance Balance
June 30, 2022 Increases Decreases June 30, 2023
Capital assets being depreciated
Building 2,157,118$ -$ -$ 2,157,118$
Equipment 11,370 - - 11,370
Total 2,168,488 - - 2,168,488
Less accumulated depreciation
Building (318,663) (39,648) - (358,311)
Equipment (5,685) (2,274) - (7,959)
Total (324,348) (41,922) - (366,270)
1,844,140$ (41,922)$ -$ 1,802,218$
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 4 - Amounts Owed to Primary Government
As of June 30, 2023, the principal balance on an advance payable to the primary government is $702,546. The
terms provide for a 20 year repayment period, at 1.85%. Accrued interest owed to the primary government
as of June 30, 2023 was $8,617.
Note 5 - Tax Abatement
As of June 30, 2023, five property tax abatement programs are administered as authorized by Oregon Revised
Statutes:
Nonprofit Low-Income Rental Housing (307.541)
The Nonprofit Low-Income Rental Housing program is to encourage nonprofit organizations to help fill the
need for low-income housing. The property must currently be in use as housing or may be land being held
for that purpose. Qualifying nonprofit corporations must be exempt from federal income tax [Section
501(c)(3) or (4) of the Internal Revenue Code] and upon liquidation distribute remaining assets to other tax-
exempt charitable organizations or the state of Oregon. When applying for the exemption, the nonprofit
corporation must certify that the income level of each renter is at or below 60 percent of area median income
which is determined by the State Housing Stability Council based on information from the U.S. Department
of Housing and Urban Development. HB 3082 in 2015 amended the law to allow alternative definitions of low-
income, up to 80 percent of area median income, for the purpose of renewing an existing application.
Principal Interest Total
Fiscal Year
2024 47,278$ 12,997$ 60,275$
2025 48,119 12,156 60,275
2026 49,043 11,232 60,275
2027 49,950 10,325 60,275
2028 50,874 9,401 60,275
2029-2033 268,804 32,571 301,375
2034-2037 188,478 7,567 196,045
Total 702,546$ 96,249$ 798,795$
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 5 - Tax Abatement (Continued)
Property for Low-income Rental (307.517)
The intent of the Property for Low-income Rental program is to assist in providing housing equity throughout
the state and reduce homelessness. Newly constructed rental housing occupied by low-income persons or
property held for a reasonably short period of time for future development as low-income rental housing is
exempt from property taxes for 20 years if the property is:
Located in a city or county that adopts standards and guidelines to be used in administering
applications for exemption.
Built after the city or county adopts the state statutes.
Approved by the city or county upon application.
For projects requesting an exemption after October 5, 2015, any additional criteria established by the
city or county prior to the application.
Rented only to persons with income at or below 60 percent of area median income based on U.S.
Department of Housing and Urban Development criteria.
Rented at rates that reflect the full property tax reduction.
Legislation in 2015 (HB 2130) amended the law to allow cities or counties to establish reasonable maximum
holding times for land designated for low-income housing development. The legislation also permitted cities
or counties to elect additional qualifying criteria before granting the exemption. Legislation in 2019 (HB 2130)
extended the sunset to June 30, 2029.
Enterprise Zone Businesses (285C.175)
The purpose of the Enterprise Zone Business program is to stimulate and protect economic success by
providing tax incentives for employment, business, industry and commerce and by providing adequate levels
of complementary assistance to community strategies for such interrelated goals as environmental
protection, growth management and efficient infrastructure. Qualified real and personal property owned or
leased and newly placed into service by a qualified business firm in an enterprise zone is exempt from
property tax for three to five consecutive years.
A new or expanding business can qualify if the business meets all of the conditions outlined in ORS 285C.135
and 285C.200, such as applying locally for authorization prior to construction, engaging in eligible business
operations, entering into a “first source” hiring agreement with local publicly funded job training providers,
and increasing the number of jobs in the enterprise zone by the greater of one additional job or 10 percent.
To be exempt, the property owned or leased by the business must satisfy applicable timing, location,
minimum cost, and other requirements described in ORS 285C.180. Property is disqualified if used for an
ineligible activity, such as retail operations, or if the business firm substantially curtails operations or closes
during the exemption period. When property becomes disqualified, previously exempt taxes must be repaid.
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 5 - Tax Abatement (Continued)
Construction in Process in an Enterprise Zone (285C.170)
The purpose of the Construction in Process in an Enterprise Zone program is to stimulate and protect
economic success by providing tax incentives for employment, business, industry, and commerce and by
providing adequate levels of complementary assistance to community strategies for such interrelated goals
as environmental protection, growth management and efficient infrastructure (ORS 285C.055). Property
undergoing construction, addition, modification, or installation is exempt from property taxation for up to
two consecutive years provided that the property satisfies all the program requirements. This exemption is
effectively an extension of expenditure 2.011, Commercial Buildings Under Construction, specifically to
properties that are expected to qualify for a standard enterprise zone exemption when they are completed.
If a property is exempt under both 2.011 and this expenditure, the combined duration of the exemptions
cannot exceed two consecutive years.
Solar Projects (2015 laws c. 571)
The intent of the Solar Projects program is to provide tax relief and tax stability to utility scale solar production
property owners and developers, which subsequently encourages the development of utility scale solar
production (Note 3 following ORS 307.175). Property constituting a solar project located in an unincorporated
county area is exempt from property taxes when an agreement has been made between the governing body
of the county and the owner of the solar project. The agreement is limited to 20 consecutive years. The last
day an agreement could be made was January 1, 2022.
Tax Abatement
For the fiscal year ended June 30, 2023, the District’s property tax revenues were abated by an estimated
$3,725 under the following programs:
For the fiscal year ended June 30, 2023, the District’s property tax revenues were not impacted by tax
abatement programs administered by other governments.
Tax Abatement Program
Taxes Abated Fiscal
Year Ended
June 30, 2023
Nonprofit Low-Income Rental Housing 373$
Property for Low-income Rental 405
Enterprise Zone Businesses 2,716
Construction in Process in an Enterprise Zone 26
Solar Projects 205
Total property tax abated 3,725$
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Notes to Financial Statements
June 30, 2023
Note 6 - Risk Management
The District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets;
errors and omissions; injuries to employees and others; and natural disasters for which the District
participates in Deschutes County's self-insurance program. There have been no settlements in excess of
insurance coverage and reserves in the past three fiscal years.
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Required Supplementary Information
For the Fiscal Year Ended June 30, 2023
Deschutes County Extension
and 4-H County Service District
A Component Unit of Deschutes County, Oregon
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – General Fund
For the Fiscal Year Ended June 30, 2023
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Investment earnings 2,671$ 2,671$ 9,067$ 6,396$
Taxes - property 653,684 653,684 659,447 5,763
Total revenues 656,355 656,355 668,514 12,159
EXPENDITURES
Current:
General services 681,758 681,758 634,854 46,904
Not allocated to organizational units:
Contingency 272,559 272,559 - 272,559
Debt service 60,276 60,276 60,275 1
Total expenditures 1,014,593 1,014,593 695,129 319,464
Net change in fund balances (358,238) (358,238) (26,615) 331,623
Fund balances, budget basis - beginning of year 358,238 358,238 402,627 44,389
Fund balances, budget basis - end of year -$ -$ 376,012 376,012$
Unrealized loss on investments (15,294)
Fund balances, GAAP basis - end of year 360,718$
Budgeted Amounts
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Other Supplementary Information
For the Fiscal Year Ended June 30, 2023
Deschutes County Extension and
4-H County Service District
A Component Unit of Deschutes County, Oregon
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Schedule of Property Tax Transactions
For the Fiscal Year Ended June 30, 2023
Beginning Taxes
Balance and Interest Receivable
Tax Year 2022-23 Levy Adjustments (Discounts)Collections June 30, 2023
2022-2023 676,371$ (556)$ (17,697)$ 651,984$ 6,134$
2021-2022 5,599 (295) 124 2,935 2,493
2020-2021 2,128 (13) 113 958 1,270
2019-2020 1,209 (7) 155 919 438
2018-2019 348 (22) 57 277 106
2017-2018 119 (22) 16 56 57
2016-2017 51 (1) 8 24 34
2015-2016 (39) (1) 3 8 (45)
2014-2015 37 (1) 1 4 33
Prior 140 - 3 9 134
Totals $ 685,963 $ (918) $ (17,217) 657,174 $ 10,654
Adjustments for accruals
June 30, 2022 (881)
June 30, 2023 939
Other tax distribution 2,215
Modified accrual basis tax revenue 659,447$
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Report of Independent Auditors on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Deschutes County Commissioners
Deschutes County Extension and 4-H County Service District
(A Component Unit of Deschutes County, Oregon)
Bend, Oregon
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities and the major fund of the Deschutes County Extension and 4-H County
Service District (the District), a component unit of Deschutes County, Oregon, as of and for the year
ended June 30, 2023, 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 30,
2023.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the District's financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that were not identified.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Eugene, Oregon
November 30, 2023
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Deschutes County Extension and 4-H County Service District
A Component Unit of Deschutes County, Oregon
Audit Comments and Disclosures Required by State Regulations
June 30, 2023
Audit Comments and Disclosures Required by State Regulations
Oregon Administrative Rules 162-010-0000 through 162-010-0320 of the Minimum Standards for Audits of
Oregon Municipal Corporations, prescribed by the Secretary of State in cooperation with the Oregon State
Board of Accountancy, enumerate the financial statements, schedules, comments, and disclosures required
in audit reports. The required statements and schedules are set forth in the preceding sections of this report.
Required comments and disclosures related to the audit of such statements and schedules are set forth in
the following pages.
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Report of Independent Auditors Required by Oregon State
Regulations
Deschutes County Commissioners
Deschutes County Extension and 4-H County Service District
(A Component Unit of Deschutes County, Oregon)
Bend, Oregon
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States the financial statements of the governmental
activities and the major fund of Deschutes County Extension and 4-H County Service District (the
District), a component unit of Deschutes County, Oregon, as of and for the year ended June 30,
2023, 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 30, 2023.
Compliance
As part of obtaining reasonable assurance about whether the District’s basic financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, including provisions of Oregon Revised Statutes (ORS)
as specified in Oregon Administrative Rules (OAR) 162-010-0000 to 162-010-0330, of the Minimum
Standards for Audits of Oregon Municipal Corporations, noncompliance with which could have a
direct and material effect on the financial statements. However, providing an opinion on compliance
with those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion.
We performed procedures to the extent we considered necessary to address the required comments
and disclosures which included, but were not limited to, the following:
Accounting records and internal control
Public fund deposits
Budget
Insurance and fidelity bonds
Investments
In connection with our testing, nothing came to our attention that caused us to believe the District was
not in substantial compliance with certain provisions of laws, regulations, contracts, and grant
agreements, including the provisions of ORS as specified in OAR 162-010-0000 through
162-010-0330 of the Minimum Standards for Audits of Oregon Municipal Corporations.
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Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. Accordingly, this communication is not suitable for any
other purpose.
This report is intended solely for the information and use of the County Commissioners and
management of the District and the Oregon Secretary of State and is not intended to be and should
not be used by anyone other than these parties.
Amanda McCleary-Moore, Partner
For Moss Adams LLP
Eugene, Oregon
November 30, 2023
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