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Multnomah County, Oregon Comprehensive Annual Financial Report

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Multnomah County, Oregon Comprehensive Annual Financial Report MULTNOMAH COUNTY, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT FISCAL YEAR ENDED JUNE 30, 2020 About the Cover A shelter worker at the Mount Scott Community Center sets up a bed while properly wearing a mask and social distancing to protect the most vulnerable population in the County. Many people and businesses are facing tough challenges due to the global pandemic. This shelter is operated by the City of Portland and Multnomah County’s Joint Office of Homeless Services (JOHS), which has set a national standard for how local governments can work cross-jurisdictionally to use resources more effectively and demonstrate that every member of their community is valued and sustained by local leaders, especially during a time of crisis. The Joint Office of Homeless Services has vastly increased its provision of shelter and outreach services to assist with Multnomah County’s COVID-19 response. The JOHS has established three new congregate shelters, six physical distancing motel shelters, and two voluntary isolation motel shelters to allow for physical distancing and adherence to other public health guidance in its existing congregate shelter system. Adam Brown, the Business Services Manager for the JOHS, stated, “We have an existing shelter system that we fund in non-COVID times. This additional capacity has allowed us to decompress that system, ensure proper physical distancing, and keep people safe.” If you would like to get involved and be a part of the effort to strengthen the community, please visit the website http://ahomeforeveryone.net/ and click on GET INVOLVED at the top. MULTNOMAH COUNTY, OREGON COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Prepared by: Department of County Management Eric Arellano, Chief Financial Officer 501 SE Hawthorne Blvd, Suite 531 Portland, Oregon 97214 MULTNOMAH COUNTY, OREGON Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement 16 Elected Officials 17 Principal Officers 18 Organizational Charts 19 FINANCIAL SECTION Report of Independent Auditors 23 Management's Discussion and Analysis 26 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 43 Statement of Activities 45 Fund Financial Statements: Governmental Funds: Balance Sheet 46 Reconciliation of the Balance Sheet to the Statement of Net Position 47 Statement of Revenues, Expenditures, and Changes in Fund Balances 48 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 49 Statements of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual: General Fund 50 Federal/State Program Fund 51 Proprietary Funds: Statement of Fund Net Position 52 Statement of Revenues, Expenses, and Changes in Fund Net Position 53 Statement of Cash Flows 54 Fiduciary Funds: Statement of Fiduciary Net Position 55 Statement of Changes in Fiduciary Net Position 56 MULTNOMAH COUNTY, OREGON Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (continued) Notes to Basic Financial Statements: I. Summary of significant accounting policies 57 II. Stewardship, compliance, and accountability 74 III. Detailed notes 76 IV. Other information 100 Required Supplementary Information: I. Postemployment benefits other than pensions: Retirement Health Insurance Account – Schedule of Proportionate Share (Asset) Liability 132 Schedule of Contributions 132 Multnomah County Postretirement Medical and Life Insurance Plan – Schedule of Changes in Total OPEB Liability and Related Ratios and Notes to the Schedule 133 II. Employee retirement systems, pension plan: Schedule of Proportionate Share of Net Pension (Asset) Liability 134 Schedule of Pension Contributions 134 III. Notes to required supplementary information 135 Combining and Individual Fund Statements and Schedules - Governmental Funds: Nonmajor Governmental Funds: Combining Balance Sheet 137 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 138 Nonmajor Special Revenue Funds: Combining Balance Sheet 139 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 142 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Road Fund 145 Bicycle Path Construction Fund 146 Recreation Fund 147 County School Fund 148 Animal Control Fund 149 Willamette River Bridges Fund 150 Library Fund 151 Special Excise Tax Fund 152 MULTNOMAH COUNTY, OREGON Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (continued) Land Corner Preservation Fund 153 Inmate Welfare Fund 154 CARES Act Local Government Fund 155 Justice Services Special Operations Fund 156 Oregon Historical Society Levy Fund 157 Video Lottery Fund 158 Library District Fund 159 Supportive Housing Fund 160 Debt Service Funds: Combining Balance Sheet 161 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 162 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Capital Debt Retirement Fund 163 PERS Pension Bond Sinking Fund 164 Capital Projects Funds: Combining Balance Sheet 165 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 168 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Downtown Courthouse Capital Project Fund 171 Asset Replacement Revolving Fund 172 Financed Projects Fund 173 Library Capital Construction Fund 174 Capital Improvement Fund 175 Information Technology Capital Fund 176 Asset Preservation Fund 177 Health Headquarters Capital Fund 178 Sellwood Bridge Replacement Fund 179 Hansen Building Replacement Fund 180 Enterprise Resource Planning Project Fund 181 Library District Capital Fund 182 Burnside Bridge Fund 183 Behavioral Health Resource Center Capital Fund 184 MULTNOMAH COUNTY, OREGON Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (continued) Combining and Individual Fund Statements and Schedules - Proprietary Funds: Enterprise Funds: Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Dunthorpe-Riverdale Service District No. 1 Fund 185 Mid County Service District No. 14 Fund 186 Behavioral Health Managed Care Fund 187 Internal Service Funds: Combining Statement of Net Position 188 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position 190 Combining Statement of Cash Flows 192 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Risk Management Fund 196 Fleet Management Fund 197 Fleet Asset Replacement Fund 198 Information Technology Fund 199 Mail Distribution Fund 200 Facilities Management Fund 201 Combining and Individual Fund Statements and Schedules - Fiduciary Funds: Custodial Funds: Statement of Fiduciary Net Position 202 Statement of Changes in Fiduciary Net Position 204 Other Financial Schedules: Property Tax Collections and Outstanding Balances 206 Capitalized Lease Obligations 207 Loans Payable Outstanding 208 Full Faith and Credit Bonds Outstanding 209 STATISTICAL INFORMATION SECTION Financial Trends: Net Position by Component 211 Changes in Net Position 213 Fund Balances, Governmental Funds 217 MULTNOMAH COUNTY, OREGON Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (continued) Changes in Fund Balances, Governmental Funds 219 Revenue Capacity: Program Revenues by Function/Program 221 Tax Revenues by Source, Governmental Funds 223 Assessed Valuation and Actual Values of Taxable Property 224 Property Tax Levies and Collections 225 Property Tax Rates - Direct and Overlapping Governments 226 Principal Taxpayers 227 Debt Capacity: Ratio of Outstanding Debt by Type 228 Ratios of General Bonded Debt Outstanding 229 Pledged-Revenue Coverage 230 Legal Debt Margin Information 231 Computation of Direct and Overlapping Debt 233 Demographic and Economic Information: Demographic and Economic Statistics 234 Principal Employers 235 Full Time Equivalent County Employees by Function/Program and Bargaining Unit 236 Operating Information: Operating Indicators by Function/Program 238 Capital Asset and Infrastructure Statistics by Function/Program 242 AUDIT COMMENTS AND DISCLOSURES Report of Independent Auditors on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Oregon Minimum Audit Standards 244 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 246 INTRODUCTORY SECTION INTRODUCTORY SECTION (This page intentionally left blank.) Department of County Management Finance & Risk Management Division December 23, 2020 Honorable County Chair, Board of County Commissioners and Citizens of Multnomah County, Oregon, We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of Multnomah County, Oregon, (the County) for the fiscal year ended June 30, 2020, together with the unmodified opinion of our independent certified public accountants, Moss Adams LLP. The CAFR is published to provide the Board of County Commissioners, County staff, our residents, and other interested readers with detailed financial information that presents the County’s financial position and activities of County departments. The Department of County Management is responsible
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