Josephine County, Oregon Audit Results COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE January 30, 2019
Agenda Better Together: Moss Adams & Josephine County, Oregon 1.Engagement Team 2.Nature of Services Provided 3.Auditor Opinions/Reports 4.Internal control related matters 2 5.Communications to Those Charged with Governance 6.County Statistics 7.New Standards
Engagement Team Better Together: Moss Adams & Josephine County, Oregon Amanda McCleary-Moore , CPA, Partner AMANDA.MCCLEARY-MOORE@MOSSADAMS.COM (541) 732-3865 Kim Reno , CPA, Manager KIM.RENO@MOSSADAMS.COM 3 (541) 732-3823 Cayleigh Lee, Senior, In-Charge CAYLEIGH.LEE@MOSSADAMS.COM (541) 732-3831
Nature of Services Provided Better Together: Moss Adams & Josephine County, Oregon 1 2 Assistance with, and technical Audit the County financial review of each respective CAFR statements in accordance with for compliance with GAAP as well GAAS and GAGAS as GFOA Certificate of Excellence requirements 3 4 Compliance testing/reporting Single Audit of federal grant under Oregon Minimum Audit programs under Uniform Guidance 4 Standards 6 5 Reporting - Overall audit plan, Agreed upon procedures – landfill audit results, communicating Exam – jail levy internal controls findings and noncompliance
Critical Audit Areas Better Together: Moss Adams & Josephine County, Oregon • Internal controls / IT environment • Cash & Investments • Revenues & Receivables • Capital Assets • Long Term Debt 5 • Accrued Liabilities – PERS, OPEB • Grants • Financial Close & Reporting • Oregon Minimum Standards
Better Together: Moss Adams & Josephine County, Oregon Audit Opinion/ Reports Government Oregon Uniform Financial Auditing Levy Exam Minimum guidance Statements Standards Standards Report 6 No reportable County was Unmodified No reportable Unmodified findings found in (clean) opinion findings (clean) opinion compliance over on financial managements statement assertions which included the County did not operate at the 185 jail bed capacity
Communications to Those Charged with Governance Better Together: Moss Adams & Josephine County, Oregon • Planned scope and timing • Significant accounting policies • Management judgments & accounting estimates • Audit adjustments made and passed • Three audit adjustments – Unearned Timber sales and two eliminations of 7 Interfund balances • One ‘passed’ adjustments – restatement of opening net position related to implementation of GASB 75 • Management’s consultation with other accountants • No disagreements with management • No difficulties in performing the audit
Communications to Those Charged with Governance Better Together: Moss Adams & Josephine County, Oregon • BEST PRACTICES • Financial close and reporting process • Reporting – Airport improvement program 8
County-wide Revenues Better Together: Moss Adams & Jackson County, Oregon IN MILLIONS $80 $68 $70 $60 $49 $47 $50 $42 $41 $40 9 $30 $30 $28 $30 $20 $14 $14 $13 $11 $8 $10 $6 $5 $6 $- Grants and Contributions Charges for Services Property Tax Revenue Total Revenue 2015 2016 2017 2018
County-wide Expenses Better Together: Moss Adams & Jackson County, Oregon IN MILLIONS $25 $21 $20 $20 $18 $15 $14 $13 $13 $12 10 $10 $10 $9 $9 $8 $7 $7 $7 $6 $6 $5 $6 $5 $4 $5 $1 $1 $1 $1 $- General Government Public Safety Public Works HHS Other Total Busines Type 2015 2016 2017 2018
Net Position TRENDS NOTED Better Together: Moss Adams & Jackson County, Oregon IN MILLIONS $68.2 $67.7 $66.1 $70.0 $62.0 $58.5 $57.7 $57.4 $55.2 $60.0 $54.6 $54.5 $50.0 $40.0 $30.0 11 $11.2 $20.0 $11.4 $10.5 $8.9 $8.4 $10.0 $2.6 $1.3 $- 2014 2015 2016 2017 2018 $(4.4) $(5.2) $(10.0) $(10.8) $(20.0) Total Net investment in capital assets Restricted Unrestricted
General Fund - Balance TRENDS NOTED Better Together: Moss Adams & Jackson County, Oregon IN MILLIONS $13.2 $14.0 $12.0 $9.4 $10.0 $8.5 $7.8 $7.9 $8.0 12 $5.4 $4.9 $4.7 $4.7 $6.0 $4.3 $3.9 $3.4 $4.0 $2.0 $- 2015 2016 2017 2018 Revenues Expenses Fund Balance - Excludes transfers in (out)
General Fund Cash & Investments Better Together: Moss Adams & Jackson County, Oregon IN MILLIONS $6.5 $7.0 $6.1 $6.0 $5.0 $3.6 13 $4.0 $3.1 $3.0 $2.0 $1.0 $- June 2015 June 2016 June 2017 June 2018
County-wide Debt Better Together: Moss Adams & Jackson County, Oregon IN MILLIONS $11.8 $12.0 $10.5 $10.5 $10.0 $7.7 $8.0 14 $6.0 $4.0 $1.4 $1.5 $1.3 $1.2 $2.0 $- June 2015 June 2016 June 2017 June 2018 Bonds and loans due in one year Bonds and loans due in more than one year
General Fund as % of Expenditures Better Together: Moss Adams & Jackson County, Oregon TRENDS NOTED 89% 90% 80% 70% 57% 60% 43% 40% 15 50% 40% 30% 20% 10% 0% June 2015 June 2016 June 2017 June 2018
Property Taxes Better Together: Moss Adams & Jackson County, Oregon Total Direct Tax Rate Per $1,000 of Value $1.36 $1.40 $1.20 $1.00 $0.59 16 $0.80 $0.60 $0.40 $0.20 $- Josephine County '18 4 County Average '18 *Counties included: Jackson, Klamath, Curry, Douglas
New Standards Better Together: Moss Adams & Josephine County, Oregon GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions – effective for June 30, 2018 fiscal year GASB Statement No. 83, Certain Asset Retirement Obligations – effective for June 30, 2019 fiscal year GASB Statement No. 84, Fiduciary Activities – effective for June 30, 2020 fiscal year GASB Statement No 85, Omnibus 2017 – effective for June 30, 2018 fiscal year 17 GASB Statement No. 86, Certain Debt Extinguishment Issues – effective for June 30, 2018 fiscal year GASB Statement No. 87, Leases – effective for June 30, 2021 fiscal year
The material appearing in this presentation is for informational purposes only and should not be construed as advice of any kind, including, without limitation, legal, accounting, or investment advice. This information is not intended to create, and receipt does not constitute, a legal relationship, including, but nor limited to, an accountant-client relationship. Although this information may have been prepared by professionals, it should not be used as a substitute for professional services. If legal, accounting, investment, or other professional advice is required, the services of a professional should be sought. Assurance, tax, and consulting offered through Moss Adams LLP. Wealth management offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.
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