NEVADA LEGISLATURE’S INTERIM FINANCE COMMITTEE’S COMMITTEE ON INDUSTRIAL PROGRAMS
(NRS 209.4817)
Friday, September 21, 2018 1:00 p.m.
Grant Sawyer State Office Building Room 4412 555 East Washington Avenue Las Vegas, Nevada
Videoconference to:
Legislative Building Room 3138 401 South Carson Street Carson City, Nevada
STATE OF NEVADA LEGISLATIVE COUNSEL BUREAU
LEGISLATIVE COMMISSION (775) 684-6800 INTERIM FINANCE COMMITTEE (775) 684-6821 JASON FRIERSON, Assemblyman, Chairman JOYCE WOODHOUSE, Senator, Chair Rick Combs, Director, Secretary Mark Krmpotic, Fiscal Analyst Cindy Jones, Fiscal Analyst CARSON CITY OFFICE: Legislative Building, 401 S. Carson Street LAS VEGAS OFFICE: Carson City, Nevada 89701-4747 555 E. Washington Avenue, Room 4400 Fax No.: (775) 684-6600 Las Vegas, Nevada 89101-1072 RICK COMBS, Director (775) 684-6800 Fax No.: (702) 486-2810 BRENDA J. ERDOES, Legislative Counsel (775) 684-6830 MELISA R. AGUON, Legislative Services Officer (702) 486-2800 ROCKY COOPER, Legislative Auditor (775) 684-6815 MICHAEL STEWART, Research Director (775) 684-6825
MEETING NOTICE AND AGENDA
Name of Organization: NEVADA LEGISLATURE'S INTERIM FINANCE COMMITTEE’S COMMITTEE ON INDUSTRIAL PROGRAMS (NRS 209.4817)
Date and Time of Meeting: SEPTEMBER 21, 2018 – 1:00 p.m.
Place of Meeting: Grant Sawyer State Office Building Room 4412 555 East Washington Avenue Las Vegas, Nevada
Note: Some members of the Committee may be attending the meeting and other persons may observe the meeting and provide testimony through a simultaneous videoconference conducted at the following location: Legislative Building Room 3138 401 South Carson Street Carson City, Nevada
If you cannot attend the meeting, you can listen to it live over the Internet. The address for the Nevada Legislature website is http://www.leg.state.nv.us. Click on the link “Calendar of Meetings – View.”
Note: Please provide the secretary with electronic or written copies of testimony and visual presentations if you wish to have complete versions included as exhibits with the minutes.
A G E N D A
Note: Items on this agenda may be taken in a different order than listed. Two or more agenda items may be combined for consideration. An item may be removed from this agenda or discussion relating to an item on this agenda may be delayed at any time.
I. ROLL CALL.
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II. PUBLIC COMMENT. (Because of time considerations, speakers are urged to avoid repetition of comments made by previous speakers. A person may also have comments added to the minutes of the meeting by submitting them in writing either in addition to testifying or in lieu of testifying. Written comments may be submitted in person or by email, facsimile, or mail before, during, or after the meeting.)
For III. APPROVAL OF MINUTES OF THE MEETING OF THE NEVADA Possible LEGISLATURE'S INTERIM FINANCE COMMITTEE’S COMMITTEE ON Action INDUSTRIAL PROGRAMS FOR JUNE 22, 2018.
For IV. STATUS REPORT ON OUTSTANDING DEBT OWED TO PRISON INDUSTRIES. Possible Action
For V. REVIEW THE NUMBER OF INMATES THAT WORKED JULY 2014 THROUGH Possible JUNE 2018. Action
For VI. REVIEW THE DEDUCTIONS FROM INMATE WAGES FOR ROOM AND Possible BOARD, THE PRISONS CAPITAL IMPROVEMENT FUND, AND THE VICTIMS Action OF CRIME FUND – FY 2016, FY 2017, AND FY 2018.
For VII. REVIEW SILVER STATE INDUSTRIES’ FINANCIAL STATEMENTS FOR THE Possible FISCAL YEAR ENDING JUNE 30, 2018. Action For VIII. STATUS OF AND PROPOSED EXPENDITURES FROM FUND FOR NEW Possible Action CONSTRUCTION OF FACILITIES FOR PRISON INDUSTRIES – NRS 209.192.
For IX. INFORMATION ITEM: DISCUSSION OF STATUS OF APPROVED NEW Possible Action PRISON INDUSTRY PROGRAMS – NRS 209.4818. A. Nevada Organics, Inc. B. Erickson Framing Holdings, LLC. C. Sewing Collection, Inc.
For X. DISCUSSION OF AND RECOMMENDATIONS REGARDING POTENTIAL Possible Action PRISON INDUSTRY PROGRAM – NRS 209.4818 – Ink2Work, LLC.
XI. UPUBLIC COMMENT. (Because of time considerations, speakers are urged to avoid repetition of comments made by previous speakers. A person may also have comments added to the minutes of the meeting by submitting them in writing either in addition to testifying or in lieu of testifying. Written comments may be submitted in person or by email, facsimile, or mail before, during, or after the meeting.)
XII. ADJOURNMENT.
Note: We are pleased to make reasonable accommodations for persons with disabilities who wish to attend the meeting. If special arrangements for the meeting are necessary, please notify the Fiscal Analysis Division of the Legislative Counsel Bureau, in writing, at the Legislative Building, 401 South Carson Street, Carson City, Nevada 89701-4747, or call the Fiscal Analysis Division at (775) 684-6821 as soon as possible.
2 2 Notice of this meeting was posted in the following Carson City and Las Vegas, Nevada, locations: Blasdel Building, 209 East Musser Street; City Hall, 201 North Carson Street; Legislative Building, 401 South Carson Street; and Legislative Counsel Bureau, Las Vegas Office, Grant Sawyer State Office Building, 555 East Washington Avenue. Notice of this meeting was faxed, e-mailed, or hand delivered for posting to the following Carson City and Las Vegas, Nevada, locations: Capitol Press Corps, Basement, Capitol Building, 101 North Carson Street; Clark County Government Center, Administrative Services, 500 South Grand Central Parkway; and Capitol Police, Grant Sawyer State Office Building, 555 East Washington Avenue. Notice of this meeting was posted on the Internet through the Nevada Legislature’s website at www.leg.state.nv.us.
Supporting public material provided to Subcommittee members for this meeting may be requested from Donna Thomas, Committee Secretary, at 775-684-6822 or Carla Ulrych, Fiscal Analysis Division of the Legislative Counsel Bureau at 775-684-6821, and is/will be available at the following locations: Meeting locations and the Nevada Legislature’s website at www.leg.state.nv.us.
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MINUTES OF THE MEETING OF THE NEVADA LEGISLATURE'S INTERIM FINANCE COMMITTEE’S COMMITTEE ON INDUSTRIAL PROGRAMS FOR JUNE 22, 2018
MINUTES OF THE NEVADA LEGISLATURE’S INTERIM FINANCE COMMITTEE’S COMMITTEE ON INDUSTRIAL PROGRAMS (NRS 209.4817) June 22, 2018
The fourth meeting of the 2017-18 Interim for the Nevada Legislature’s Interim Finance Committee’s Committee on Industrial Programs was held at 1:00 p.m. on Friday, June 22, 2018, in Room 4401 of the Grant Sawyer State Office Building in Las Vegas, Nevada. The meeting was simultaneously videoconferenced to Room 3138 of the Legislative Building in Carson City.
COMMITTEE MEMBERS PRESENT IN LAS VEGAS: Senator David Parks, Chairman Assemblywoman Daniele Monroe-Moreno Bruce Aguilera, Representing Business James Dzurenda, Director, Nevada Department of Corrections Randy Soltero, Representing Organized Labor Beverly Williams, Representing Organized Labor
COMMITTEE MEMBERS PRESENT IN CARSON CITY: Jeffrey Haag, Administrator, Purchasing Division, Department of Administration
COMMITTEE MEMBERS ABSENT: Senator Pete Goicoechea Assemblyman James Oscarson Allen J. Puliz, Representing Manufacturing Pete Aguilar, Representing Manufacturing
STAFF MEMBERS PRESENT IN LAS VEGAS: Kristina Shea, Program Analyst, Fiscal Analysis Division Brody Leiser, Senior Program Analyst
STAFF MEMBERS PRESENT IN CARSON CITY: Nick Anthony, Senior Principal Deputy Legislative Counsel, Legal Division Donna Thomas, Secretary, Fiscal Division
OTHERS PRESENT IN LAS VEGAS: Diane Dastal, Administrative Services Officer II, NDOC Bill Quenga, Marketing Coordinator, Prison Industries, NDOC Justin Pope, Supervisor, Prison Ranch, NDOC
OTHERS PRESENT IN CARSON CITY: Mary Byington, Supervisor, Prison Industries, NDOC
5 EXHIBITS: Exhibit A: Agenda and Meeting Packet
I. ROLL CALL.
Chair Parks called the meeting of the Nevada Legislature’s Interim Finance Committee’s Committee on Industrial Programs to order at 1:07 p.m. The secretary called roll. All members were present except for Senator Goicoechea, Assemblyman Oscarson and Mr. Puliz who were excused.
Chair Parks stated that the recommendation on the appointment of the Deputy Director of Industrial Programs was not included on the meeting agenda. He said it was his understanding that David Tristan, Acting Deputy Director of Industrial Programs, had several interim projects to complete before his transition out of the position. He noted the topic would be addressed at a future meeting of the Committee on Industrial Programs.
II. PUBLIC COMMENT.
There was no public comment.
III. APPROVAL OF MINUTES OF THE MEETING OF THE NEVADA LEGISLATURE'S INTERIM FINANCE COMMITTEE’S COMMITTEE ON INDUSTRIAL PROGRAMS FOR MARCH 16, 2018.
Senator Parks requested a motion for approval of the minutes of the March 16, 2018, meeting.
ASSEMBLYWOMAN MONROE MORENO MOVED TO APPROVE THE MINUTES OF THE MARCH 16, 2018, MEETING OF THE NEVADA LEGISLATURE’S INTERIM FINANCE COMMITTEE’S COMMITTEE ON INDUSTRIAL PROGRAMS.
MR. AGUILERA SECONDED THE MOTION. THE MOTION CARRIED UNANIMOUSLY.
IV. APPOINTMENT OF ALTERNATE MEMBERS FOR COMMITTEE ON INDUSTRIAL PROGRAMS – NRS 209.4817.
Chair Parks stated that NRS 209.4817 provided for the appointment of alternate members for the Committee on Industrial Programs. The recommended alternate members would serve for a two-year term. He noted that Robby Conway, was appointed as an alternate for Beverly Williams, who was a non-legislative member of the Committee. Chair Parks indicated that Robby Conway previously served on the Committee and wanted to be considered for reappointment.
6 MR. SOLTERO MOVED TO APPROVE THE APPOINTMENT OF ROBBY CONWAY AS AN ALTERNATE MEMBER FOR BEVERLY WILLIAMS FOR THE COMMITTEE ON INDUSTRIAL PROGRAMS.
ASSEMBLYWOMAN MONORE MORENO SECONDED THE MOTION. THE MOTION CARRIED UNAMIOUSLY.
V. STATUS REPORT ON OUTSTANDING DEBT OWED TO PRISON INDUSTRIES.
Diane Dastal, Administrative Services Officer II, Nevada Department of Corrections summarized the status report on outstanding debt owed to Prison Industries (PI), Tab V of the meeting packet (Exhibit A). She noted the customer aging report was current as of March 31, 2018, and the receivables totaled $415,791. The largest balances outstanding on the aging report were noted with an asterisk and made up the top ten accounts with balances due, and owed $360,998 or 87 percent of the total receivables. Six of the top ten accounts were government agencies and the other four accounts were private customers that had continued business with PI. Looking at the 31 – 120 days past due column, all but two customers were government agencies and currently the two private customers have paid; however, not all of the government agencies have paid. She noted that, typically, government agencies seemed to take longer to remit their payments at the end of a fiscal year, but she was confident they would.
Responding to a question from Assemblywomen Monroe Moreno, Ms. Dastal stated that there were two private customers that have paid, but the remaining eight accounts were government agencies and not all of them have paid to date. She noted that PI never had a bad debt from a government agency. She said the private customer that paid was Open Air Movies.
Chair Parks asked what type of business Open Air Movies was engaged in that was shown on the customer aging report.
Mr. Quenga replied that Open Air Movies was a privately-owned company that provided large inflatable screens, which were produced at the Lovelock Correctional Center. The screens come with an air pump and could be used outdoors. The screens could be up to 20 feet high and 20 feet wide or larger.
VI. REVIEW THE NUMBER OF INMATES THAT WORKED JULY 2014 THROUGH MARCH 2018.
Ms. Dastal directed the Committee to the report on the number of inmates that worked from July 2014 through March 2018, Tab VI of the meeting packet (Exhibit A). She stated in FY 2015, PI averaged 492 offenders working or 4.1 percent of the offender population; in FY 2016, PI averaged 482 offenders working or 3.6 percent of the offender population; and in FY 2017, PI averaged 465 offenders working or 3.3 percent of the total offender population. She stated the first nine months of FY 2018 had an average of 3.6 percent of the prison population working with 495 offenders. Ms. Dastal noted the number of offenders working in FY 2017 had been flat, with 496 offenders working in July 2017 and
7 495 offenders working in March 2018. The average prison population decreased slightly by 232 offenders compared to the start of Fiscal Year 2017. Fiscal Year 2017 started with an average of 14,070 offenders working and an average of 13,838 offenders working in March 2018, or a 1.5 percent decrease, which was relatively flat also.
Chair Parks asked Ms. Dastal about the increase in the Auto/Upholstery Shop from 13 inmates working in February 2018 to 45 inmates working in March 2018, and Ms. Dastal replied that she did not have that data but would look into the reason and provide the information to the Committee.
VII. REVIEW THE DEDUCTIONS FROM INMATE WAGES FOR ROOM AND BOARD, THE PRISON INDUSTRY CAPITAL IMPROVEMENT FUND, AND THE VICTIMS OF CRIME FUND – FY 2016, FY 2017 AND FY 2018 YEAR-TO-DATE.
Ms. Dastal summarized the deductions from the inmate wages for room and board, the Prison Industry Capital Improvement Fund (CIP) and the Victims of Crime Fund, Tab VII of the meeting packet (Exhibit A). She stated that 24.5 percent of the wages for offenders were deducted for room and board; 5 percent of wages for offenders were deducted for the Victims of Crime Fund; and 5 percent of wages were deducted for the Prison Industry CIP fund. In FY 2016, $405,016 in wages were deducted from offenders’ wages for the three funds; in FY 2017, $450,620 in wages were deducted for the three funds; and for the first nine months of FY 2018, $353,461 in wages were deducted, which was $251,009 for room and board; and $51,226 was deducted for the Victims of Crime Fund and PI CIP, respectively. Ms. Dastal noted that it looked like PI would end the year with $471,000 deducted from inmate wages, a 14 percent increase over FY 2016 and a 4 percent increase over FY 2017.
Chair Parks commented that he recently toured the Florence McClure Women’s Correctional Center with Assemblywoman Monroe Moreno and staff, which was very informative.
VIII. REVIEW SILVER STATE INDUSTRIES FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDING MARCH 31, 2018.
Ms. Dastal reviewed the financial statements from Silver State Industries, Tab VIII of the meeting packet (Exhibit A). The cash for the Prison Industries increased approximately $525,000 or 25 percent compared to the same period last year. The total cash for the Prison Ranch decreased approximately $87,000 or 7 percent. The total unrestricted cash balance for both the PI and the Ranch increased approximately $438,000 or 13 percent. The PI capital restricted cash balance increased by $68,000 or 20 percent. Retained earnings increased approximately $455,000 or 14 percent.
Continuing to the Consolidated Statement of Operations, Ms. Dastal stated the net income for the three quarters of FY 2018 was approximately $196,000, a decrease of approximately $48,000 or 20 percent over the same time last year. She said that PI contributed approximately $115,000 toward program support; the Prison Ranch contributed
8 approximately $36,000; and PI Capital Projects Fund contributed approximately $45,000 toward program support.
Ms. Dastal stated that the fund equity for PI has increased $455,000 or 8 percent compared to the same time last year. Central Administration Statement of Operations showed that total revenue was down $88,000; license plate fees were down $19,000; and administrative fees for Diamond Mountain Distributors were down approximately $77,000. She indicated that PI increased the price of sorting playing cards from $9.50 to $10.00 a case, which would take a while to catch up with the financials. General and Administrative Expenses decreased approximately $135,000 and the big change was that there was no bad debt expense in FY 2018. The State Cost Allocation deceased approximately $112,000. The total loss decreased $66,000 ending the nine months with $111,000 net loss.
Continuing, Ms. Dastal moved to the Northern Nevada Correctional Center (NNCC) Mattress Shop Statement of Operations, Tab VIII of the meeting packet (Exhibit A), and noted sales for the Mattress Shop decreased approximately $95,000 or 28 percent. The mattress factory’s contribution toward program support decreased approximately $77,000; however, it had a $27,000 contribution toward program support.
Mr. Quenga reported that NNCC was awarded the mattress bid for NDOC through the bidding process with State Procurement. He said he obtained some purchase orders for mattresses, which were currently being produced. He stated that approximately 300 mattresses were currently in production, which had to be completed by the end of the fiscal year. In addition, he was working with the Washoe County and Carson City Sheriff’s Office, to provide mattresses with built in pillows for the local jails.
Chair Parks asked if there were any discussions with the Las Vegas Metropolitan Police, Sheriff’s Office, Clark County Detention Center or the Cities of Henderson about purchasing mattresses through PI.
Mr. Quenga replied that PI was registered with Clark County Purchasing and he was yet to get any bids; however, recently there was some interest in purchasing PREA shower curtains.
Assemblywoman Monroe Moreno said that she heard that the City of North Las Vegas was considering reopening the C Unit at the North Las Vegas Jail within 12 to 18 months. She thought it would be worthwhile to talk to the new Interim Police Chief and the City Manager to inform them of the products provided by PI before another company approached them.
Mr. Quenga replied that PI would make contact and send out samples to the Interim Police Chief and City Manager.
Chair Parks added that John Jay Lee, the Major of North Las Vegas, was a long-term state legislator, and thought he would be interested in the products produced by PI.
9 Continuing with her presentation, Ms. Dastal stated that NNCC Printing/Bindery Shop sales decreased approximately $40,000 and earnings available for program support decreased by approximately $20,000. The Print Shop still ended the nine months in the black with approximately $24,000 available for program support.
Mr. Quenga stated that PI was starting to see an increase in sales and products for the Print/Bindery Shop. He noted that the Print/Bindery shop was working on a sublimation patch, which was printed on polymer material and applied with a Merrill’s Stitcher. He noted that instead of a fully embroidered patch, many companies were going to the sublimation patch. He said PI was working with the Department of Wildlife and other agencies on patches for their uniforms, which seemed to be working out well. He indicated he reached out to the Las Vegas Chamber of Commerce, visitor centers and other entities to try to get more work for PI. In addition, he was working with the Special Olympics on t-shirts and patches for their Torch Run. He noted that the Special Olympics has a convention in November, which he planned on attending to promote PI and its products.
Chair Parks commented that during his recent tour of the Florence McClure Women’s Correctional Facility, he noticed the shoulder patches on the correctional officers’ uniforms and was very impressed with the patches.
Ms. Dastal indicated that the Statement of Operations for the Furniture and Metal Shop showed the Furniture Shop revenue decreased approximately $32,000; however, the shop was currently busy with $180,000 in open orders. She said the shop had more open orders than sales all year and the end of the year was also busy. The Furniture Shop and Metal Shop combined – Furniture had 31 percent of the sales and Metal had 69 percent of the sales. Applying that percentage to the $68,322 in general and administrative expenses, currently the Furniture Shop experienced a $33,768 loss; however, she expected that to turn around with all the open orders. Sales for the Metal Shop decreased about $324,000 and contributed $89,919 to general and administrative expenses. If PI used the Metal Shop’s 69 percent share of sales and applied that percentage to general and administrative expenses, there would be approximately a $43,000 contribution toward program support.
Mr. Quenga noted that he expected the Furniture Shop to turn around. He stated that Matt Brown, Supervisor, Furniture Shop, has reached out to county agencies and received calls from other entities for work. He said the Furniture Shop has a huge project installing bulletproof glass for the Secretary of State’s Office in Carson City, and the Nevada Office of Cyber Defense has contacted PI requesting a quote for desks and other office items. In addition, Nevada Department of Motor Vehicles (DMV) purchased chairs from PI, which they were pleased with. He noted that the DMV previously purchased its chairs from a different company and once the castor, arm or mechanism broke on a chair, the chair was out of commission. He added that PI had a good warranty program for the chairs, and chairs could be serviced in house or replaced if broken. In addition, he was working with the Department of Health and Human Services, Western Nevada College and the Nevada Mining Association on quotes for various items.
10 Chair Parks asked if there was there a possibility of using the parts from the broken DMV chairs for repairs, or cannibalizing the broken chairs to make them usable for other agencies, although they would have to consider workers’ compensation claims and the long-term health of employees.
Mr. Quenga replied that he has not thought of using the parts from the broken chairs but would have that discussion with the DMV. He said it was good idea to reuse the parts and turn the chairs over. He added that the chairs that DMV purchased from the Furniture Shop were a better quality than the chairs previously purchased by the DMV.
Ms. Dastal moved to the SDCC Auto and Upholstery Shop Statement of Operations, Tab VIII (Exhibit A), which showed that auto sales totaled $85,000. Between the Auto Shop and card sorting operation at HDSP, PI experienced a combined $28,000 loss, which included two motorcycles that were sold at a loss. She added that the Auto Shop was currently working with Opportunity Village on an envelope project, which would bring more revenue to the Auto Shop.
Mr. Quenga stated that he has been working with the supervisor of the Auto Shop to erase the revenue loss to the Auto and Upholstery Shop. He noted that he was working closely with Opportunity Village and was in the process of completing a greeting card order. He said there were approximately 400,000 cards that needed to be sorted, which consisted of the envelopes, cards, and bellyband, a translucent band to hold the card and envelope together. He said the job was recently completed and was very successful. He looked forward to working with Opportunity Village on future projects.
Mr. Aguilera asked why direct labor costs were up by $9,400 and material costs were high for the Auto and Upholstery Shop compared to the last year, and Ms. Dastal replied that two motorcycles from 2006 were sold at a huge loss, which always showed on the shop’s overhead.
Chairman Parks stated that the motorcycles were good and a great effort, but it was hard to find the right buyers for the motorcycles.
Mr. Quenga added that the Auto Shop was sitting on the motorcycles for some time so they kept depreciating; therefore, after much discussion PI decided to sell the motorcycles. He noted that one motorcycle was sold to a customer in Arizona, and the other customer was from Texas.
Moving to the Garment Factory Statement of Operations, Ms. Dastal noted garment sales increased 45 percent or $275,000 compared to the same period in FY 2016. She added that the Garment Factory was the best performing shop. Earnings available for program support increased from $59,000 to $236,000.
Mr. Quenga stated that the Garment Factory had over $1.0 million in business and he commended the supervisor of the shop. He said the Garment Factory had a private customer that serviced county jails and similar operations, and although he could not name
11 the product made by the shop, he said it was a high-quality product used for suicide rooms in institutions.
Chair Parks asked about the excess drapery material that was left at the Garment Factory from a previous project, and Mr. Quenga replied that a lot of the material was from overruns on a project. He stated the excess material was returned to the customer since it was their property. Mr. Quenga added that he was starting to see an increase in the drapery operation, which was somewhat surprising. He indicated the drapery operation slowed down so the shop started making t-shirts. However, the shop was starting to pick up with three large customers that serviced new motels and hotels with a need for draperies, which were manufactured through the Drapery Shop.
Chair Parks said it was his understanding that the Lovelock Correctional Center had a substantial amount of space to expand new industries.
Mr. Quenga replied that the space on one side of the Garment Factory was utilized; however, there was still approximately 5,000 square feet available on the east side of the facility. Currently, that area was being used for storage. He added that a manufacturing company from Sparks, Nevada, needed backs and bottoms of chairs sewed and was going to tour the facility soon. There was no capacity at NNCC, although he would like to expand that facility. However, PI could employ more inmates at the Lovelock Correctional Center because of the sewing operation already in place. He said the company was local, and excited and wanted to know how many inmates they could employ and when the inmates were being released so they could hire them upon release at $13.00 per hour with benefits.
Ms. Dastal directed the Committee to the Prison Ranch Statement of Operations, Tab VIII (Exhibit A). She said total sales decreased approximately $61,000 compared to the same period in FY 2017, which in part was due to the Bureau of Land Management (BLM) horse headcount. She stated that PI had a new contact with the BLM effective June 6, 2018. Head count was currently at 812 horses and the BLM advised PI to expect more horses. With the old agreement, the daily per diem rate on 812 horses was $3.56 per horse and was now $5.10 per horse, which was $1.54 more per horse per day. She noted that the formula was still on a per diem basis, but obviously they were receiving more per diem then previously. The training fees, which were a separate per diem, PI proposed $2,310 per horse, but the BLM countered with $1,890 per horse, which was accepted. The Prison Ranch ended with a contribution to program support of approximately $36,000.
Mr. Aguilera stated that the livestock non-cash inventory adjustment and the revenue for the crops seemed higher than the previous year, and Ms. Dastal replied the decrease in livestock revenue usually reflected livestock that died or other situations.
Justin Pope, Manager, Prison Ranch, replied that there were inventory adjustments for hay based on what was fed to the horses. For example, in 2017, the Ranch used a lot more hay to feed the horses, because the Ranch was unable to put the cows out in pasture, which would cause an inventory influx. The same influx could happen with cattle based on the market, and he would adjust the number of cattle at the Ranch. Currently, the Ranch
12 would keep some heifers to build up its herd, because beef prices were not great. Therefore, the Ranch was better off building its herd and buying more cattle. When the market turned around, the Ranch would end up selling the beef and the inventory would change and the adjustment would be different.
Chair Parks noted that Ms. Dastal indicated that trained horses were sold to the BLM for $1,890 per horse, and Ms. Dastal replied that the previous contract per diem rate on 112 horses was $3.56 and the new contract rate was $5.10 per horse.
Mr. Pope indicated that the Prison Ranch charged the BLM $1,150 per trained horse, which was increased in the new contract.
Mr. Haag asked Mr. Pope about the new contract with BLM because there were successful gains in the contract. He asked if the state was capped at the number of horses it could expect. In addition, he asked if he was given any indication as to how the current head count may be impacted based on the new agreement.
Mr. Pope replied that the BLM would not provide any indication on the number of horses the state could receive. However, he has been talking to the lead of the horse program for Nevada, who indicated the BLM was going to conduct some emergency gathers, and there was a chance the state would get 300 to 400 ungelded horses to be gelded at the Prison Ranch, which was unusual. He said it was an opportunity to get more horses, which was what he was hoping for. In addition, there would be more gathers in 2018 and he expected the number of horses to increase substantially with that gather.
Assemblywoman Monroe Moreno asked if the Prison Ranch needed to employ more inmates if the number of horses increased substantially.
Mr. Pope replied that less inmates were used on the holding side, so only one or two additional inmates were needed to keep up with the task of feeding the horses, trimming hoofs and for additional care of the horses. Currently, four inmates were employed for the feeding program and care of the horses. However, at least two more inmates would be needed if the horse count increased to approximately 1,600 horses.
Ms. Dastal continued with the Schedule of Interfund Sales, which showed that the gross profits from PI the nine months ending March 31, 2018, was $195,811 available for program support.
Mr. Quenga added that he has been working with State Procurement, Nevada Division of State Parks and the Department of Wildlife in utilizing some of state property at the Mason Valley Wildlife Refuge for hay production because of the escalating hay prices. He indicated that he was working on an interlocal agreement with the two agencies and hoped to have a contract soon to grow hay to help support the horse and cattle program and reduce operating costs.
13 Chair Parks added the state was very fortunate to get some large parcels of land along the East Walker River to expand its parks and recreation operation. He said that some of the parcels were associated with fully operational farm ventures, and it was a good idea to preserve the land to keep the operations functional. He added that it seemed like a good opportunity for the Prison Ranch operation.
IX. STATUS OF AND PROPOSED EXPENITURES FROM FUND FOR NEW CONSTRUCTION OF FACILITIES FOR PRISON INDUSTRIES – NRS 209.192.
Chair Parks stated that the department was requesting $233,315 in proposed equipment funding through the Construction of Facilities for Prison Industries Fund. He said that pursuant to NRS 209.192, before any money could be spent from the Fund for New Construction of Facilities, the Director of Corrections should submit a proposal for the expenditure to the Committee on Industrial Programs. The State Board of Examiners would then make a determination whether the expenditure was appropriate and necessary, and if so, make a recommendation to the Interim Finance Committee that the expenditure be approved. The Committee may wish to defer recommendations of the Feeder Steers ($75,000) and Game Birds ($7,500) until the next Committee meeting to allow the necessary time to vet the potential new industries pursuant to NRS 209.4818 due to concerns regarding potential impacts on private industries.
Ms. Dastal referred to Tab VIII (Exhibit A) and stated the Capital Improvement Project (CIP) ending balance decreased $31,000 from FY 2014 to FY 2018, as a result of PI purchasing $297,118 in needed equipment in FY 2016. The beginning CIP balance at the start of FY 2018 was $371,715 and wage assessments totaled $61,149 for 11 months. Interest received was $3,832 for the first nine months of FY 2018 and the current CIP balance was $436,696. She noted that PI wanted to purchase $233,315 more in new equipment. She noted the list of Silver State Industries proposed purchases through the CIP Fund seemed lengthy, but was scaled down to half of the requested purchases.
Chair Parks asked for approval of the proposed expenditures with the exception of the Feeder Steers and Game Birds.
Mr. Aguilera stated that if the Feeder Steers and Game Birds were not approved it would reduce expenditures approximately $100,000, and Chair Parks agreed.
Mr. Haag asked if the request for the baileigh box and pan brakes complimented an existing industry or if it was for a new product line, and Mr. Quenga replied that PI was working with Nevada State Parks and needed the equipment for benches and barbeque pits, because the current equipment was antiquated and slowed down production. Therefore, the machine requested would help PI provide a more precise and a better quality for existing products.
14 MR. HAAG MOVED TO APPROVE THE PROPOSED EXPENDITURES FROM THE CIP FUND WITH THE EXCEPTION OF THE FEEDER STEERS AND GAME BIRDS.
MR. SOLTERO SECONDED THE MOTION, THE MOTIION CARRIED UNAMIOUSLY.
X. INFORMATION ITEM: DISCUSSION OF STATUS OF APPROVED NEW PRISON INDUSTRIES PROGRAMS – NRS 209.4818.
Mr. Quenga stated that Nevada Organics, LLC, started operating on March 3, 2018, and currently employed 13 inmates at the site. He stated that the owner wanted to increase to 15 inmates. He said the operation with the new owner was running smoothly and was a clean operation.
Continuing, Mr. Quenga said that Erickson Framing NV, LLC, started operating on June 5, 2018. He noted that one officer was assigned to transport four inmates from the NNCC in Carson City to the work site in Reno. He indicated that Erickson Framing was a wood framing company that made doors and wall panels. The company added three additional inmates on June 12, 2018, and currently eight inmates were working at the site. The company also requested an additional inmate worker. Mr. Quenga said that he, along with the shop foreman and a human resource representative from Erickson Framing, interviewed 14 inmates prior to the selection and the company was impressed with the inmates. He noted that all 14 inmates interviewed were employable. He said the inmates were placed in groups, because the company wanted to gradually employ the inmates so that the civilian workers would not feel threatened. He said the company was a week behind in production and indicated that the inmates added a lot of value to their production. Mr. Quenga stated that upon release the offenders working could get a job with Erickson Framing to erect the trusses and wall panels. He added that he planned on interviewing an additional ten inmates to have a continuous list of inmates available to work. He noted he lost one inmate because of a disciplinary action within the department.
Mr. Quenga stated that recently he had a conference call with the vice president of Sewing Collection and the company was holding off on the contract with PI because they were looking at signing a contract with a major company. Therefore, the outcome of that contract would determine whether Sewing Collection proceeded with the PI contract. He added that Sewing Collection was highly interested in conversations with PI, so it was still on the table. He said the company wanted to close its 10,000 square foot operation in Mexico that employed approximately 25 to 30 workers. He noted the operation in Mexico was not keeping up with production and things were missing, so the owner wanted to move the operation to Nevada, which was costly to transport goods across the border. He said Sewing Collection was working with Oregon and Ohio, but was still interested in a western distribution center in Nevada.
15 XI. INFORMATION ITEM: DISCUSSION OF PROPOSED NEW PRISON INDUSTRY PROGRAM – NRS 209.4818 – Ink2Work, LLC.
Mr. Quenga stated that he has been in contact with a representative from Ink2Work, LLC, for approximately a year on the possibility of a potential new prison industry recycling ink cartridges. He added that Terry Hubert, Ink2Work has visited the Southern Desert Correctional Facility (SDCC) and High Desert State Prison (HDSP) and showed an interest in employing inmates. He indicated the company had operations with correctional industries in Virginia, and in Europe.
Terry Hubert, Ink2Work stated that Ink2Work existed to provide employment opportunities to people furthest from work. He said the company was founded in 2010 in the United Kingdom (UK) as a social enterprise. He noted that there was a particular form of business structure in the UK called a Community Interest Company, which was halfway between a profit and nonprofit, and the company reinvested the profit of the business back into programs to provide employment opportunities for people.
Mr. Hubert stated that primarily, Ink2Work worked with offenders in custody, in addition to service users for drug abuse programs and veterans that come into contact with the criminal justice system. In the UK, the company operated workshops in all types of secure environments from maximum security prisons to fully open conditions, and the program has proven flexible enough to work in either environment. In 2014, Ink2Work began a cooperative arrangement agreement with the Department of Corrections in Virginia and operated a workshop in the Indian Creek Correctional Facility, which was an experimental facility described as a two-year community college with barbed wire designed to take long sentence drug offenders in their last two years of incarceration through a program of educational work to prepare them for release.
Continuing, Mr. Hubert stated the vehicle Ink2Work used to prepare inmates for release were printer cartridges, because they are ubiquitous with approximately 400,000 million sold a year. The cartridges lend themselves very well because to produce the product, the remanufacture in the process was very labor intensive and was a fairly complex electrical mechanical devise that required manual disassembly and rebuild and could not be automated. Consequently, the remanufacture of the cartridge has moved to low cost economies, either in Eastern Europe or South East Asia, such as Cambodia, Thailand and China.
Mr. Hubert explained that his background was in technology and he worked for Hewlett Packard (HP) for 12 years in a variety of manufacturing roles in the UK and United States, and for 10 years with the Seagate Technology, a disk drive manufacturer. He said Ink2Work took the same sig sigma type approach as it used to build the original product to remanufacture them. He noted that there was a negative perception for a remanufactured printer cartridge because the industry was being characterized by ultra low-cost and it becomes a drill and fill fix. Therefore, rather than disassemble a toner cartridge and rebuild it with new component, a hole was drilled in the side, the puller and uturner were removed, tape was put over the gap, and then people would cross their fingers and hoped for the best.
16 However, extremely high temperature was used to fuse the toner to the paper, so if the puller was dumped, because of the differential rates of expansion, basically the tape comes off and the toner comes out, and most people that have used remanufactured cartridges have had that type of experience.
Mr. Hubert stated that Ink2Work’s cartridge remanufacture process was completely different. The empty printer cartridge was dismantled, cleaned and rebuilt with new components, which included drums, seals, and a chip, and then was refilled with the same volume of toner or ink as a new cartridge. The cartridge was sealed and tested on a printer to produce a high-quality output. He stated that process achieved two things – for the offender it provided a huge amount of satisfaction from being able to take the desperate parts and turn them into something that functioned well. For the company, as he was aware from his background at HP, 90 percent of cartridges fail, also called dead-on-arrival, and if a 100 percent end-of-line test was performed the opportunity for error was eliminated. He noted the second biggest issue was called info mortality, a cartridge was put into the printer to print, and three pages printed and the machine jammed because the gears inside the cartridge were not assembled correctly. Mr. Hubert stated that consequently, in Virginia, 69,000 toner cartridges to date have been shipped, and the annualized failure rate was approximately 4 percent, which meant there were incidence of failure 4 times in 1,000 cartridges. For a new cartridge, approximately 9 percent failed, so 9 cartridges per 1,000 had incidence of failure. He stated that the Committee might wonder why the revel to achieve a higher performance than a new cartridge, which was simply because Ink2Work conducted a 100 percent end-of-line test.
Continuing, in terms of customer satisfaction for Ink2Work, there were no complaints and the customers were getting a good quality cartridge. In terms of the offender community, Mr. Hubert said that he found from the start that the work was interesting and exciting for inmates and it was not a simple mechanical alteration. The offenders were excited about the job and formed an informal quality circle and would offer suggestions to achieve faster speed and more reliability. In addition, the job was teaching people not only simple manufacturing skills, which in itself was capable of being subject to a vocational qualification, but it was also teaching the offenders things like sig sigma, which was total quality technique designed to reduce variation and therefore waste. He noted that people may think there was no value in teaching people the sig sigmatic process if there was no indigenous printer cartridge remanufacturing in the United States. However, he explained the sig sigma process was used across a variety of industries, for example, a Big Mac could be bought in Las Vegas, Tokyo or London and be exactly the same, because McDonalds used the sig sigma process. Citing another example, Mr. Hubert stated a Toyota Corolla made in Japan or Tennessee were identical because Toyota used sig sigmatic to reduce variations. Therefore, offenders with those demonstrated skills were very attractive to potential employers. He noted the Ink2Work used a statistical process control so the offenders buy into the whole program, which was very successful.
Mr. Hubert stated that from a social point of view, the process worked very well. Environmentally, the printer cartridges that were consumed by state governments were primarily HP because it dominated the market. Originally, the cartridges were manufactured
17 in China, but looking at the life cycle of that cartridge, the cartridge was made in China then shipped to a distribution center in the U.S., possibly Florida or Texas, and then transported to a government office in Nevada. If the cartridge was recycled through HP, the cartridge was shipped back to China and crushed to use in low volume, low value plastics. In contrast, Ink2Work took the same cartridge and moved it to a prison 40 miles away, it was remanufactured and brought back into town and instead of traveling 16,000 miles, the cartridge traveled 80 miles, so the sustainability impact was huge, which had environmental benefits. Economically, another advantage was that the program was self-funding and did not require capital expenditures and the little capital expenditure there was, was provided by Ink2Work; however, more importantly, there was a significant level of cost reduction to state government purchases. For example, one of Ink2Work’s largest customers in Virginia were the Virginia State Police. The first year Ink2Work operated in Virginia, the Virginia State Police spent $334,000 buying new original equipment manufacturers (OEM) cartridges and by switching to the remanufactured cartridges from Virginia Correctional Enterprises, the state saved $84,000 in the first year, a significant 20 percent savings, which he believed was equivalent to the cost of a police cruiser in Virginia.
Mr. Hubert added that he has seen a similar level of performance in the UK and Ink2Work supplied the Ministry of Justice and Ministry of Defense with very comparable levels of quality to new cartridges.
Mr. Aguilera asked how companies would get access to the cartridges, and Mr. Hubert stated companies had to be extremely careful about what was coming into a secure environment, such as the prison system. He noted that Ink2Work does not have a program where users could ship cartridges to a prison, because if people were sorting empty cartridges and the confederate knew those people were sorting the cartridges, it would be very easy to slip contraband into the cartridge. Therefore, Ink2Work worked with a broker, and the broker sorted between five and seven million cartridges per month, so the large end user would be provided a link for shipping labels to send the product to the broker, so statistically, the chance of an individual cartridge making it back to a particular person in prison was impossible.
Mr. Aguilera asked how long it took to dismantle the old cartridge, reassemble it and fill with ink, and Mr. Hubert replied it depended on the printer cartridge, which could vary from the size of a matchbook, which would take three minutes to reassemble, to the size of a medium desk, which could take an hour-and-a-half. He added that it varied according to complexity of the cartridge. Obviously, there was a learning curve, so as the offenders get more adept to building the products there was significant reduction in cycle time without any corresponding issues with quality.
Mr. Aguilera asked if the manufacturers of the copy equipment had issues with using the reassembled ink cartridges from the standpoint of their warranty.
Mr. Hubert replied that issue of warranties for printer cartridges was vexed, but the Federal Government in the Magnuson-Moss Warranty Act, enacted in 1975, essentially stated that if a product was provided that relied on a consumable item, warranties could not be invalid
18 if someone used a third-party product. He believed the Act was instigated when the large three Automobile manufactures tried to sue Jiffy Lube and Grease Monkey. He added that HP led the market by far and a statement on its website noted that the use of a non-HP cartridge would not invalidate a customer’s warranty; however, they would charge a lot on the material to repair a piece of equipment if it was proven to be an issue with the cartridge. He added the warranty offered by Ink2Work would indemnify a customer against that situation.
Chair Parks asked if Ink2Work had a local presence at this time, and Mr. Hubert replied that they would be starting from scratch in Nevada. He noted that there was an existing demand because there was a distribution center in Malibu, California, which has proven to be more expensive than the company thought. He noted the company would like to relocate the Malibu distribution center to Nevada, which had an existing customer base that the state could initially support, and then the operation would be supplemented with a manufacturing facility in one of the two prisons in Nevada and the operation would gradually grow.
He added that one thing that Ink2Work learned from having business in Europe and in the State of Virginia, was that they needed to build the operation with baby steps and not giant leaps. However, he was confident the operation would grow quickly in Nevada.
Chair Parks asked Mr. Quenga if he was looking at both HDSP and Southern Desert Correctional Center (SDCC) as potential locations for the operation, and Mr. Quenga agreed. He said he would like to set up a small operation at SDCC and the distribution and remanufacturing of the cartridges at HDSP. He noted that Volvo opened an operation in North Carolina that used offenders, who were gaining sig sigma process skills and obtaining employment with the Volvo Corporation upon release.
Assemblywoman Monroe Moreno asked the number of inmates required to start up the operation and how long would it take to train staff and inmates to get the program operational.
Mr. Hubert replied that they were looking at two operations in Nevada – a distribution center and a warehousing and remanufacturing center. He noted that distribution center would probably take four to six weeks to set up and train the offenders. In terms of cartridge remanufacturing, typically they would monitor customer’s usage and find two or three high volume cartridges and then a team would set up the manufacturing operation, which was straightforward and not complicated. Following, the team would provide training to staff and the offenders. Typically, by the end of the week of training the operation would be up and ready to go. He said that in the beginning the cycle time to build a cartridge might be 60 minutes and three months later it would be down to 25 minutes. Therefore, the operation could be started fairly quickly, and then the cycle time would go down from there. Mr. Hubert stated that they used job cards, which showed each of the functions that needed to be performed, both in the disassembly and reassembly, so the offenders had a constant reminder of what they were doing on a particular task. In addition, there were essentially measurement points at each stage of the process where the success rate was measured, for example, how many times the cartridge failed at that particular point, which allowed them
19 to intercede and change the process. He reiterated that the process was very straightforward. Mr. Hubert stated that the distribution and warehousing operation would initially employ eight to ten offenders, and the remanufacturing facility would also employ eight to ten offenders to start the operation.
Chair Parks thanked Mr. Hubert for his presentation. He stated that pursuant to NRS 209.4818, the Committee may wish to request NDOC prepare the reports and studies required to determine the impact of Ink2Work, LLC, on private industries. Once the appropriate studies were completed, NDOC would submit the studies for inclusion in the meeting packet for the next Committee on Industrial Programs meeting scheduled for September 21, 2018.
Assemblywoman Monroe Moreno asked if the bonding issue with Sewing Collection had been resolved, and Mr. Quenga replied that the owner of Sewing Collection was hesitant on the surety bond, but after recent conversation, the vice president of the company was looking at a personal guarantee. He stated there were three options – the security agreement, surety bond or the personal guarantee.
Chair Parks noted for the record that Agenda Items X and XI were combined.
Chair Parks asked Mr. Haag if the State of Nevada had experience using recycled toner cartridges, and Mr. Haag replied the state did not. He said the he and the previous Deputy Director of Prison Industries, Brian Connett had the opportunity to meet with Ink2Work, and the company certainly seemed to have merit at the time, and it was something the state was open to exploring. Initially, what comes to mind was that the majority of copy companies included a toner replacement program in their contract. Therefore, the state would have to understand that part of it and identify certain agencies that could enter into a pilot program for the recycled toner cartridges. He believed the issue was the concern of the agencies in the reliability of the products, but if the run rate was four cartridges that failed for every thousand produced, he thought the state could certainly develop confidence in the product.
Mr. Aguilera asked if Ink2Work has ever approached a major company, such as Staples, to see if the company was interested in the product, which could be sold less than the original cartridge as long as it did not affect the warranty. He added that once the company was up and running in Nevada, he would provide the information to the purchasing director for MGM Grand in Las Vegas.
Mr. Hubert responded that Ink2Work has had dialogue with the two largest office suppliers in the U.S., which were Staples and Office Depot. However, the challenge was that those companies had such aggressive pricing from their vendors in Southeast Asia and it was very difficult to compete with them. In addition, the other issue with the largest office suppliers was that they wanted to start with huge volumes and Ink2work needed to build up to those volumes to be able to satisfy their demand. However, one of the manufactures of the office supply company was based in Chicago and Ink2work met with them recently about potentially supplying the cartridges and they could then supply the larger companies, but it was margin stacking exercise and was challenging but something to consider.
20 Mr. Hubert stated that when the state leased a printer or copier and paid a fee per page and the company supplied the toner cartridges and maintenance, he stated that Ink2Work had the exact same environment in Virginia and the U.K. He stated that in practice, he found that the Information Technology (IT) departments would mandate the use of network printers, but wrenching printers away from individual users was extremely difficult. For example in Virginia, the state IT department mandated that users could no longer buy desktop laser printers, so instead purchased desktop ink printers. Therefore, half of Ink2Works volume in Virginia was selling ink cartridges for the printers, which he thought would be a similar situation in Nevada, certainly anecdotally in the government offices that he visited in Nevada.
XII. PUBLIC COMMENT.
There was no public comment.
XIII. ADJOURNMENT.
The meeting was adjourned at 2:32 p.m.
Respectfully submitted,
______Donna Thomas, Committee Secretary
APPROVED:
______Senator David Parks, Chairman
Date: ______
I:\ONGOING\Committees\Prison Industries\1 2017-2018 Biennium\1 September 21, 2018\Meeting Packet\FINAL 6-22-18 PI Minutes.docx
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IV
STATUS REPORT ON OUTSTANDING DEBT OWED TO PRISON INDUSTRIES SILVER STATE INDUSTRIES CUSTOMER LEDGER AGING BY DUE DATE REPORT Date: 06/30/18 0 ‐ 30 31 ‐ 60 61 ‐ 90 91 ‐ 120 121 + Cust ID Customer Name 05/31 ‐ 06/30 05/01 ‐ 05/30 04/01 ‐ 04/30 03/02 ‐ 03/31 Prior ‐ 03/01 Balance BU1020 BUREAU OF LAND MGT. $40,654.04 $0.00 $0.00 $0.00 $0.00 $40,654.04 * CA1008 DAIRY FARMERS OF AMERICA $5,153.47 $0.00 $0.00 $0.00 $0.00 $5,153.47 CA1017 CARSON FOOTBALL BOOSTERS $0.00 $75.00 $0.00 $0.00 $0.00 $75.00 CA1019 CARSON CITY LIBRARY $4,235.00 $0.00 $0.00 $0.00 $0.00 $4,235.00 CA1025 CARSON JUVENILE CENTER $351.00 $0.00 $195.00 $0.00 $0.00 $546.00 CA1043 CARSON CITY SHERIFF ‐ SPEC $1,248.00 $0.00 $0.00 $0.00 $0.00 $1,248.00 CI1006 CITY OF CARSON, SHERIFF $80.00 $0.00 $0.00 $0.00 $0.00 $80.00 DI1025 DIAMOND MOUNTAIN DIST. $51,066.95 $0.00 $0.00 $0.00 $0.00 $51,066.95 * DO1001 DOUGLAS COUNTY HUMAN RES. $27.50 $0.00 $0.00 $0.00 $0.00 $27.50 DO1010 D C NINTH JUDICIAL DISTRICT $133.00 $0.00 $0.00 $0.00 $0.00 $133.00 DO1018 DOUGLAS COUNTY SHERIFF'S $1,218.00 $0.00 $0.00 $0.00 $0.00 $1,218.00 DO1035 DOUGLAS CO. PUBLIC WORKS $0.00 $1,692.00 $0.00 $0.00 $0.00 $1,692.00 EA1020 EASTERN STAR GRAND CHAPT $155.00 $0.00 $0.00 $0.00 $0.00 $155.00 EM1005 ELY EMPLOYEES' ASSOCIATION $84.00 $0.00 $0.00 $0.00 $0.00 $84.00 EM1008 EMPLOYEES' ASSOCIATION $136.00 $0.00 $0.00 $0.00 $0.00 $136.00 ER1000 ERICKSON FRAMING NV, LLC $14,069.18 $0.00 $0.00 $0.00 $0.00 $14,069.18 FE1020 FERGUSON SAFETY PRODUCTS $14,660.05 $0.00 $0.00 $0.00 $0.00 $14,660.05 * JA1010 JACOBS TRADING CO. $28,239.49 $0.00 $0.00 $0.00 $0.00 $28,239.49 * LY1000 LYON COUNTY SHERIFF'S OFFICE $104.80 $0.00 $0.00 $0.00 $0.00 $104.80 LY1002 LYON COUNTY SCHOOL DIST. $530.00 $0.00 $0.00 $0.00 $0.00 $530.00 MA1008 MELODY MARCH $45.00 $0.00 $0.00 $0.00 $0.00 $45.00 NE1017 NEVADA SUPREME COURT $7,244.00 $0.00 $0.00 $0.00 $0.00 $7,244.00 NE1041 NEVADA ORGANICS, LLC $6,422.67 $0.00 $0.00 $0.00 $0.00 $6,422.67 NO1005 NORTHAMERICAN AG PROD. $4,114.70 $0.00 $0.00 $0.00 $0.00 $4,114.70 OP1020 OPORTUNITY VILLAGE $4,307.79 $0.00 $0.00 $0.00 $0.00 $4,307.79 OP1030 OPEN AIR MOVIES $3,314.24 $0.00 $0.00 $0.00 $0.00 $3,314.24 VA1003 VARIOUS CUSTOMERS‐COD $28,436.10 $0.00 $0.00 $0.00 $0.00 $28,436.10 VI1000 VINYL PRODUCTS $58.00 $0.00 $0.00 $0.00 $0.00 $58.00 VV1005 VIETNAM VETERANS #989 $0.00 $215.00 $0.00 $0.00 $0.00 $215.00 VV1010 VIETNAM VETERANS #388 $131.00 $0.00 $0.00 $0.00 $0.00 $131.00 WE1009 WESTERN NEVADA COLLEGE $3,648.50 $0.00 $0.00 $0.00 $0.00 $3,648.50 WI1002 WITTENBERG HALL $1,306.50 $0.00 $0.00 $0.00 $0.00 $1,306.50 WO1035 WORLD CLASS EQUINE $4,093.82 $3,331.29 $3.35 $0.00 $0.00 $7,428.46 YY1005 NDOC ADMIN PERSONNEL $3,412.00 $0.00 $0.00 $0.00 $0.00 $3,412.00 YY1007 NDOC CENTRAL TRANSPORT $13.20 $0.00 $0.00 $155.10 $0.00 $168.30 YY1011 ELY STATE PRISON $16,295.46 $0.00 $0.00 $0.00 $0.00 $16,295.46 * YY1012 ELY CONSERVATION CAMP $910.00 $0.00 $0.00 $0.00 $0.00 $910.00 YY1015 HUMBOLDT CONS. CAMP $4,790.16 $0.00 $0.00 $0.00 $0.00 $4,790.16 YY1016 THREE LAKES CONS. CAMP $213.00 $0.00 $0.00 $0.00 $0.00 $213.00 YY1017 LOVELOCK CORR. CTR. $6,124.00 $0.00 $0.00 $0.00 $0.00 $6,124.00 YY1018 NDOC INSPECTOR GENERAL $3,777.50 $0.00 $0.00 $0.00 $0.00 $3,777.50 YY1020 JEAN CONSERVATION CAMP $6,434.76 $0.00 $0.00 $0.00 $0.00 $6,434.76 YY1021 HIGH DESERT STATE PRISON $422.00 $212.50 $0.00 $0.00 $0.00 $634.50 YY1023 NDOC ADMIN‐MILK $42,328.80 $35,807.80 $36,552.60 $0.00 $0.00 $114,689.20 * 23 24
0 ‐ 30 31 ‐ 60 61 ‐ 90 91 ‐ 120 121 + Cust ID Customer Name 05/31 ‐ 06/30 05/01 ‐ 05/30 04/01 ‐ 04/30 03/02 ‐ 03/31 Prior ‐ 03/01 Balance YY1029 NO NV CORR CTR $12,466.22 $0.00 $16,815.00 $0.00 $0.00 $29,281.22 * YY1038 PI STORE/NSP TRADING POST $22.00 $20.00 $0.00 $0.00 $0.00 $42.00 YY1040 CASA GRANDE TRANSITIONAL $9,402.00 $0.00 $0.00 $0.00 $0.00 $9,402.00 YY1042 NO NV TRANSITIONAL HOUSING $1,620.24 $0.00 $0.00 $0.00 $0.00 $1,620.24 YY1045 WARM SPRINGS C.C. $6,776.44 $0.00 $0.00 $0.00 $0.00 $6,776.44 YY1049 PIOCHE CONSERVATION CAMP $3,403.20 $0.00 $0.00 $0.00 $0.00 $3,403.20 YY1050 PURCHASING ‐ NDOC OFFICE $4,877.00 $0.00 $0.00 $0.00 $0.00 $4,877.00 YY1051 SO DESERT CORR CTR $7,958.00 $0.00 $0.00 $0.00 $0.00 $7,958.00 YY1056 FMWCC ‐ CANTEEN $444.00 $0.00 $0.00 $0.00 $0.00 $444.00 YY1057 STEWART CONS. CAMP $117.00 $0.00 $0.00 $0.00 $0.00 $117.00 YY1058 FLORENCE MCCLURE WOMEN $5,394.50 $0.00 $0.00 $0.00 $0.00 $5,394.50 YY1063 WELLS CONSERVATION CAMP $5,427.04 $0.00 $0.00 $0.00 $0.00 $5,427.04 YY1067 STEWART CONS CAMP‐CANTEEN $62.00 $0.00 $0.00 $0.00 $0.00 $62.00 YY1070 HIGH DESERT STATE PRISON‐CAN $1,148.00 $0.00 $0.00 $0.00 $0.00 $1,148.00 YY1072 PI CASA GRANDE STORE $729.00 $0.00 $0.00 $0.00 $0.00 $729.00 YY1110 TONOPAH CONS CAMP‐CANTEEN $109.50 $0.00 $0.00 $0.00 $0.00 $109.50 YY1135 NDOC INMATE PURCHASES $1,406.00 $0.00 $0.00 $0.00 $0.00 $1,406.00 ZZ1000 ADMINISTRATION DEPART,EMT $120.00 $0.00 $0.00 $0.00 $0.00 $120.00 ZZ1002 ADMINISTRATIVE SERVICES $0.00 $41.00 $0.00 $0.00 $0.00 $41.00 ZZ1005 AGING DIVISION LAS VEGAS $5,626.00 $0.00 $0.00 $0.00 $0.00 $5,626.00 ZZ1006 AGING DIVISION CARSON CITY $7,799.00 $0.00 $0.00 $0.00 $0.00 $7,799.00 ZZ1011 ATTORNEY GENERAL'S OFFICE $497.50 $0.00 $0.00 $0.00 $0.00 $497.50 ZZ1037 EMPLOYMENT, TRAINING & REH $1,336.25 $0.00 $0.00 $0.00 $0.00 $1,336.25 ZZ1046 GOVERNOR'S OFFICE $42.50 $46.50 $0.00 $0.00 $0.00 $89.00 ZZ1055 GAMING CONTROL BOARD $0.00 $47.75 $0.00 $0.00 $0.00 $47.75 ZZ1076 INDUSTRIAL RELATIONS‐CARSON $20,796.00 $0.00 $0.00 $0.00 $0.00 $20,796.00 * ZZ1082 DMV/NV INVESTIGATIONS DIV. $636.00 $0.00 $0.00 $0.00 $0.00 $636.00 ZZ1083 DEPT OF MOTOR VEH‐SPARKS $168.00 $0.00 $0.00 $0.00 $0.00 $168.00 ZZ1089 LEGISLATIVE COUNSEL BUREAU $182.82 $317.00 $0.00 $0.00 $0.00 $499.82 ZZ1090 LIBRARY & ARCHIVES $1,091.50 $0.00 $0.00 $0.00 $0.00 $1,091.50 ZZ1103 MOTOR VEHICLES DEPT. $115,241.00 $73.50 $0.00 $0.00 $0.00 $115,314.50 * ZZ1110 DEPT OF PUBLIC SAFETY $3,796.00 $0.00 $0.00 $0.00 $0.00 $3,796.00 ZZ1121 NV STATE PURCHASING $1,315.00 $0.00 $0.00 $0.00 $0.00 $1,315.00 ZZ1129 SECRETARY OF STATE $34,076.00 $0.00 $0.00 $0.00 $0.00 $34,076.00 * ZZ1141 TRANSPORTATION DEPT. $90.00 $0.00 $0.00 $0.00 $0.00 $90.00 ZZ1148 NEVADA STATE WELFARE $289.90 $125.00 $0.00 $0.00 $130.00 $544.90 ZZ1169 HUMAN RES‐EARLY INTERVENT $13,733.00 $0.00 $0.00 $0.00 $0.00 $13,733.00 ZZ1187 DIVISION OF WATER RESOURC $91.90 $0.00 $0.00 $0.00 $0.00 $91.90 ZZ1208 DEPT OF AG. ESTRAY HORSE $621.00 $0.00 $0.00 $0.00 $0.00 $621.00 ZZ1226 HEALTH & HUMAN SERVICES $1,006.00 $0.00 $0.00 $0.00 $0.00 $1,006.00 ZZ1297 DEPT OF PUBLIC SAFETY ‐ NHF $5,525.00 $0.00 $0.00 $0.00 $0.00 $5,525.00 ZZ1310 NV DIVISION OF FORESTRY $522.00 $0.00 $0.00 $0.00 $0.00 $522.00 AGING TOTALS: $585,953.19 $42,004.34 $53,565.95 $155.10 $130.00 $681,808.58
AGING PERCENTAGES: 86% 6% 8% 0% 0% 100% * Indicates top ten customer balances
REVIEW THE NUMBER OF INMATES THAT WORKED JULY 2014 THROUGH JUNE 2018
V
NDOC Industrial Programs Report of Offenders Working FY 2015 FY 2015 Mo. INST SHOP Jul‐14 Aug‐14 Sep‐14 Oct‐14 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15 Apr‐15 May‐15 Jun‐15 AVG HDSP DMD (private) 128 131 127 121 111 106 111 114 114 128 133 140 122 LCC Garment 99 97 96 92 88 88 87 87 85 84 83 83 89 NNCC Metal 17 16 17 23 23 23 21 22 21 21 21 21 21 NNCC Furniture 35 34 34 34 29 27 33 28 28 27 32 30 31 NNCC Mattress 12 12 12 12 12 12 12 12 12 12 10 10 12 NNCC Printing/Book Bindery 24 26 25 22 25 21 23 25 25 23 23 27 24 SCC Ranch 22 20 21 20 21 18 17 18 22 25 24 23 21 SCC Horses 23 21 20 24 20 17 18 17 19 19 19 17 20 SCC Tag Plant 11 9 8 11 11 11 9 14 14 12 12 12 11 SDCC Auto/Upholstery 23 20 18 21 21 21 21 21 22 24 23 24 22 ISCC M‐Truss (community) 3 2 2 ‐ 1 1 ‐ ‐ ‐ ‐ ‐ ‐ 1 SDCC DMD (private) 35 35 39 35 33 34 29 29 44 43 29 27 34 SDCC Opportunity Village 24 28 35 34 36 43 43 39 40 38 39 37 36 FMWCC Jacobs Trading (private) 59 56 56 56 55 51 15 55 26 26 26 25 42 WSCC DMD (private) 765566761010667
Grand Total 522 513 515 510 492 479 446 487 482 492 480 482 492
Average Offender Population 12,797 12,791 12,786 12,831 12,791 12,792 12,833 12,866 12,944 13,034 13,046 12,999 12,876 Percent of Offender Population Working 4.1% 4.0% 4.0% 4.0% 3.8% 3.7% 3.5% 3.8% 3.7% 3.8% 3.7% 3.7% 4.1% 25 26
NDOC Industrial Programs Report of Offenders Working FY 2016 FY 2016 Mo. INST SHOP Jul‐15 Aug‐15 Sep‐15 Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 AVG HDSP DMD (private) 273 115 103 103 144 143 139 132 131 130 125 123 139 LCC Garment 83 91 90 89 86 87 68 84 82 98 119 104 91 NNCC Metal 22 22 21 28 22 23 23 23 24 24 24 24 24 NNCC Furniture 34 31 29 34 31 31 29 28 27 29 30 30 31 LCC Mattress 10 11 11 12 12 12 12 12 11 11 13 13 13 NNCC Printing/Book Bindery 27 26 26 27 25 30 28 26 27 29 27 26 28 SCC Ranch 27 23 22 24 26 24 20 19 30 19 19 20 24 SCC Horses 22 21 20 21 22 26 26 28 34 31 31 31 27 SCC Tag Plant 15 15 15 15 12 16 16 15 15 14 16 16 16 SDCC Auto/Upholstery 22 20 19 16 18 17 18 17 16 16 16 17 19 SDCC DMD (private) 32 7 26 20 25 20 20 20 19 18 17 16 21 SDCC Opportunity Village 39 39 36 36 37 33 34 31 31 32 31 33 35 FMWCC Jacobs Trading (private) 22 20 19 19 16 16 16 15 15 15 15 15 18 WSCC DMD (private) 7888888898 7 7 9
Grand Total 635 449 445 452 484 486 457 458 471 474 490 475 482
Average Offender Population 13,082 13,156 13,133 13,251 13,290 13,413 13,413 13,432 13,558 13,624 13,646 13,685 13,391 Percent of Offender Population Working 4.9% 3.4% 3.4% 3.4% 3.6% 3.6% 3.4% 3.4% 3.5% 3.5% 3.6% 3.5% 3.6% NDOC Industrial Programs Report of Offenders Working FY 2017 FY 2017 Mo. INST SHOP Jul‐16 Aug‐16 Sep‐16 Oct‐16 Nov‐16 Dec‐16 Jan‐17 Feb‐17 Mar‐17 Apr‐17 May‐17 Jun‐17 AVG HDSP DMD (private) 120 108 96 88 88 131 136 140 141 135 127 125 121 LCC Garment 100 100 106 95 104 104 102 102 93 137 110 111 106 NNCC Metal 24 24 26 25 24 27 27 26 27 29 27 27 27 NNCC Furniture 29 30 28 28 30 31 27 26 29 27 38 32 31 NNCC Mattress 13 12 11 11 12 12 12 12 12 13 12 12 13 NNCC Printing/Book Bindery 26 27 34 26 25 38 33 33 31 31 31 31 31 SCC Ranch 20 22 21 26 20 22 23 22 23 21 27 28 24 SCC Horses 30 29 25 28 26 27 25 25 26 23 23 26 27 SCC Tag Plant 14 14 19 18 18 18 15 15 18 17 17 18 18 SDCC Auto/Upholstery 16 16 17 17 21 19 18 18 20 21 20 20 20 SDCC DMD (private) 30 25 25 26 24 31 31 33 36 34 36 36 32 SDCC Opportunity Village 9000000000 0 0 2 FMWCC Jacobs Trading (private) 15 15 14 14 19 17 17 18 18 18 18 18 18 WSCC DMD (private) 9887799989 101010
Grand Total 455 430 430 409 418 486 475 479 482 515 496 494 465
Average Offender Population 13,686 13,697 14,021 14,050 14,094 14,153 14,091 14,108 14,169 14,151 14,179 14,117 14,096 Percent of Offender Population Working 3.3% 3.1% 3.1% 2.9% 3.0% 3.4% 3.4% 3.4% 3.4% 3.6% 3.5% 3.5% 3.3% 27 28
NDOC Industrial Programs Report of Offenders Working FY 2018 FY 2018 Mo. INST SHOP Jul‐17 Aug‐17 Sep‐17 Oct‐17 Nov‐17 Dec‐17 Jan‐18 Feb‐18 Mar‐18 Apr‐18 May‐18 Jun‐18 AVG HDSP DMD (private) 131 129 148 165 164 163 144 151 146 147 160 170 152 LCC Garment 110 109 101 104 114 114 108 99 102 105 104 106 106 NNCC Metal 28 27 27 25 28 21 20 20 21 19 19 18 23 NNCC Furniture 33 31 31 32 32 24 28 24 25 29 26 26 28 NNCC Mattress 12 12 12 11 11 11 11 10 9 9 10 9 11 NNCC Printing/Book Bindery 35 30 33 29 28 29 28 25 23 24 29 27 28 SCC Ranch 25 25 24 22 28 27 29 28 26 27 30 29 27 SCC Horses 23 28 29 26 22 22 24 29 26 26 25 24 25 SCC Erickson Framing NV (private) 0000000000 0 8 1 SCC Tag Plant 18 18 16 16 15 14 14 14 14 16 19 16 16 SDCC Auto/Upholstery 19 19 18 18 16 16 15 13 15 15 17 19 17 SDCC Opportunity Village ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 6 21 2 SDCC DMD (private) 34 34 33 33 34 33 33 31 32 32 29 27 32 FMWCC Jacobs Trading (private) 18 18 18 18 18 18 18 17 18 16 16 17 18 WSCC DMD (private) 10 10 10 9999888 8 8 9
Grand Total 496 490 500 508 519 501 481 469 465 473 498 525 494
Average Offender Population 14,070 14,060 14,074 13,681 13,592 13,325 13,804 13,800 13,838 13,820 13,805 13,760 13,805 Percent of Offender Population Working 3.5% 3.5% 3.6% 3.7% 3.8% 3.8% 3.5% 3.4% 3.4% 3.4% 3.6% 3.8% 3.6%
REVIEW THE DEDUCTIONS FROM INMATE WAGES FOR ROOM AND BOARD, THE PRISON INDUSTRY CAPITAL IMPROVEMENT FUND, AND THE VICTIMS OF CRIME FUND FY 2016, FY 2017 AND FY 2018
VI
NEVADA DEPARTMENT OF CORRECTIONS Prison Industries Payroll Assessments FY 2016 FY 2017 FY 2018 a) R & B b) VCF c) PICI Total a) R & B b) VCF c) PICI Total a) R & B b) VCF c) PICI Total Northern Nevada Correctional Ctr. 64,712 13,206 13,206 91,124 68,549 13,990 13,990 96,529 50,792 10,367 10,367 71,526 Stewart Conservation Camp 53,018 10,820 10,820 74,658 58,650 11,970 11,970 82,590 52,945 10,806 10,806 74,557 Lovelock Correctional Ctr. 52,849 10,785 10,785 74,419 64,550 13,173 13,173 90,896 92,422 18,863 18,863 130,148 Florence McClure Womens' Correctional Ctr. 39,131 7,986 7,986 55,103 54,187 11,058 11,058 76,303 52,215 10,657 10,657 73,529 Southern Desert Correctional Ctr. 28,571 5,831 5,831 40,233 23,453 4,786 4,786 33,025 25,547 5,214 5,214 35,975 Warm Springs Correctional Ctr. 2,875 587 587 4,049 3,670 749.0 749.0 5,168.0 2,830 578 578 3,986 High Desert State Prison 46464 9483 9483 65,430 46947 9581 9581 66,109 47,694 9,734 9,734 67,162 Total $ 287,620 58,698$ 58,698$ 405,016$ 320,006$ 65,307$ 65,307$ 450,620$ 324,445$ 66,219$ 66,219$ 456,883$
a) Room and Board (R & B)
Twenty‐Four and one‐half percent of the offender's gross wages are assessed to defray some of the costs incured by the State to house the offenders.
b) Victims of Crime Fund (VCF)
Five percent of the offender's gross wages are assessed for the Fund for Compensation of Victims of Crime.
c) Prison Industries Capital Improvement Fund (PICI)
Five percent of the offenders' gross wages are assessed for capital projects to house new or expanded Prison Industry programs. 29 30
REVIEW SILVER STATE INDUSTRIES’ FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDING JUNE 30, 2018
VII
NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES
FINANCIAL STATEMENTS FOR THE YEAR ENDING JUNE 30, 2018 WITH COMPARATIVE JUNE 30, 2017 FINANCIAL STATEMENTS
31 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES
TABLE OF CONTENTS
Page
Consolidated Balance Sheet 1
Consolidated Statements of Operations (With Interfund Sales Eliminated) 2
Consolidated Statements of Operations (by Budget Account with Interfund Sales Eliminated) 3
Consolidated Statements of Changes in Retained Earnings 4
Consolidated Statements of Cash Flows 5
Statements of Operations: Central Administration 6 NNCC Mattress 7 NNCC Print/Bindery 8 NNCC Furniture and Metal 9 SDCC Auto and Upholstery 10 LCC Garment 11 Prison Ranch 12
Schedule of Interfund Sales 14
Notes 16
32 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES CONSOLIDATED BALANCE SHEETS As of June 30, 2018 and 2017
ASSETS Increase (Decrease) Current Assets: 2018 2017 Change Percent Cash - Unrestricted (Note 1f) Prison Industries $ 2,514,606 $ 2,115,949 $ 398,657 18.8% Prison Ranch 1,321,893 1,170,440 $ 151,453 12.9% Total Unrestricted Cash $ 3,836,499 3,286,389 $ 550,110 16.7% Accounts Receivable (Note 8) 681,809 816,723 $ (134,914) -16.5% Less Allowance for Doubtful Accounts (Note 16) (4,953) (4,953) -$ 0.0% Net Accounts Receivable 676,856 811,770 $ (134,914) -16.6% Treasurer's Interest Receivable (Note 12a) 14,021 5,138 $ 8,883 172.9% PI Capital Revenue Receivable (Note 13b) 5,071 6,468 $ (1,397) -21.6% Deposits - Business Licenses (Note 6) 15,000 15,000 -$ 0.0% Livestock (Notes 1c & 7) 309,330 295,970 $ 13,360 4.5% Inventories (Notes 1b & 3) 801,391 667,475 $ 133,916 20.1% Ranch's Hay-Purchased & Harvested (Note 1c) 197,322 378,578 $ (181,256) -47.9% Total Current Assets 2,018,991 2,180,399 $ (161,408) -7.4% Land, land improvements, property and equipment at cost (Note 2) 4,207,844 4,207,844 -$ 0.0% Less accumulated depreciation (3,720,297) (3,600,200) $ (120,097) 3.3% Net Property and Equipment 487,547 607,644 $ (120,097) -19.8% Other Assets: Cash - Restricted - PI Capital (Note 1f) 436,696 364,331 $ 72,365 19.9% Total Other Assets 436,696 364,331 $ 72,365 19.9% Total Assets $ 6,779,733 $ 6,438,763 $ 340,970 5.3%
LIABILITIES AND CAPITAL BALANCE Current Liabilities: Accounts Payable (Note 9) $ 243,425 $ 410,001 $ (166,576) -40.6% Unearned Revenue (Note 5) 145,420 119,997 $ 25,423 21.2% Rent and Other Deposits 9,400 9,400 -$ 0.0% Wages Payable - - -$ 0.0% Current Accrued Compensated Absences (Note 11) 84,616 84,616 -$ 0.0% Total Current Liabilities 482,861 624,014 $ (141,153) -22.6% Long-Term Liabilities: Accrued Compensated Absences (Note 11) 73,962 73,962 -$ 0.0% Total Long-Term Liabilities 73,962 73,962 -$ 0.0% Total Liabilities 556,823 697,976 $ (141,153) -20.2% Capital: Contributed Capital $ 2,193,440 2,193,440 -$ 0.0% Retained Earnings 4,029,470 3,547,347 $ 482,123 13.6% Total Capital 6,222,910 5,740,787 $ 482,123 8.4% Total Liabilities and Capital Balance $ 6,779,733 $ 6,438,763 $ 340,970 5.3%
The accompanying notes are an integral part of these financial statements. -1- 33 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES CONSOLIDATED STATEMENTS OF OPERATIONS (With Interfund Sales Eliminated) For the year ending June 30, 2018 and 2017
June 30, Increase (Decrease) June 30, 2018 2017 Change Percent Revenue from Operations: Industry Sales $ 2,754,653 $ 3,237,548 $ (482,895) -14.9% Less Cost of Sales (1,813,446) (2,121,662) $ 308,216 -14.5% Gross Profit from Industry sales $ 941,207 1,115,886 $ (174,679) -15.7% Ranch Sales 1,947,889 2,225,933 $ (278,044) -12.5% Less Cost of Sales (1,382,964) (1,618,466) $ 235,502 -14.6% Gross Profit from Ranch sales 564,925 607,467 $ (42,542) -7.0% Industry Freight 2,193 6,273 $ (4,080) -65.0% General Manufacturing Expenses: (965,581) (1,085,129) $ 119,548 -11.0% Net Income from Operations: 542,745 644,497 $ (101,752) -15.8% General and Administrative Expenses: (1,104,609) (1,220,304) $ 115,695 -9.5% Other Income and Expenses 1,043,987 1,078,887 $ (34,900) -3.2% $ (20,956) -4.2% Net Income (Loss) $ 482,123 $ 503,079
34 The accompanying notes are an integral part of these financial statements. -2- NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES CONSOLIDATED STATEMENTS OF OPERATIONS By Budget Account (With Interfund Sales Eliminated) For the year ending June 30, 2018 and 2017
Budget Account 3719 - Prison Industries June 30, Increase (Decrease) June 30, 2018 2017 Change Percent Revenue from Operations: Industry Sales $ 2,754,653 $ 3,237,548 $ (482,895) -14.9% Less Cost of Sales $ (1,813,446) (2,121,662) $ 308,216 -14.5% Gross Profit from Industry sales $ 941,207 1,115,886 $ (174,679) -15.7% Industry Freight 2,193 6,273 $ (4,080) -65.0% Institutional Overhead Expenses: (458,539) (518,640) $ 60,101 -11.6% Net Income from Operations: 484,862 603,519 $ (118,657) -19.7% General and Administrative Expenses: (1,104,609) (1,220,304) $ 115,695 -9.5% Other Income and Expenses 986,424 1,025,344 $ (38,920) -3.8% $ (41,881) -10.3% Net Income (Loss) $ 366,677 $ 408,558
Budget Account 3727 - Prison Ranch June 30, June 30, 2018 2017 Revenue from Operations: Ranch Sales $ 1,947,889 $ 2,225,933 $ (278,044) -12.5% Less Cost of Sales (1,382,964) (1,618,466) $ 235,502 -14.6% Gross Profit from Ranch sales $ 564,925 607,467 $ (42,542) -7.0% Institutional Overhead Expenses: (507,042) (566,489) $ 59,447 -10.5% $ 16,905 41.3% Net Income (Loss) $ 57,883 $ 40,978
Budget Account 3728 - P I Capital Projects June 30, June 30, 2018 2017 Revenue: Inmate Wage Assessments $ 66,219 $ 65,161 $ 1,058 1.6% Capital Improvements (Depreciation) (14,343) (14,343) -$ 0.0% Other Income (Interest) 5,687 2,725 $ 2,962 108.7% $ 4,020 7.5% Net Income (Loss) $ 57,563 $ 53,543
The accompanying notes are an integral part of these financial statements. -3- 35 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES CONSOLIDATED STATEMENTS OF CHANGES IN RETAINED EARNINGS For the year ending June 30, 2018 and 2017
June 30, June 30, Increase (Decrease) 2018 2017 Change Percent
Unreserved Retained Earnings at Beginning of Year $ 3,547,347 $ 3,044,268 $ 503,079 16.5% Current Period Net Income 482,123 503,079 $ (20,956) -4.2% Prior Period Adjustment - -$ 0.0% Unreserved Retained Earnings at End of Year 4,029,470 3,547,347 $ 482,123 13.6%
Contributed Capital 2,193,440 2,193,440 -$ 0.0%
Total Fund Equity $ 6,222,910 $ 5,740,787 $ 482,123 8.4%
36 The accompanying notes are an integral part of these financial statements. -4- NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the year ending June 30, 2018 and 2017 June 30, Increase (Decrease) Revenue: June 30, 2018 2017 Change Percent Cash Flows From Operating Activities: Net Income $ 482,123 $ 503,079 $ (20,956) -4.2% Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 120,096 120,096 -$ 0.0% Decrease (Increase) in Net Accounts Receivable 134,914 (171,370) $ 306,284 -178.7% Decrease (Increase) in Interest Receivable (8,883) (4,772) $ (4,111) 86.1% Decrease (Increase) in Prepaid Expenses - - -$ 0.0% Decrease (Increase) in PI Capital Revenue Receivable 1,397 3,019 $ (1,622) -53.7% Increase (Decrease) in Deposits - - -$ 0.0% Decrease (Increase) in Inventories 33,980 76,219 $ (42,239) -55.4% Increase (Decrease) in Accounts Payable (166,576) 121,788 $ (288,364) -236.8% Increase (Decrease) in Unearned Revenue 25,423 34,659 $ (9,236) -26.6% Decrease (Increase) in Rent Deposits - 5,000 $ (5,000) -100.0% Increase (Decrease) in Wages Payable - (57,282) $ 57,282 -100.0% Increase (Decrease) in Accrued Compensated Absences - (16,956) $ 16,956 -100.0% Net Cash Provided by Operating Activities $ 622,474 613,480 $ 8,994 1.5% Net Increase in cash 622,474 613,480 $ 8,994 1.5% Cash at beginning of year Unrestricted 3,286,389 2,689,310 $ 597,079 22.2% Restricted 364,331 3,650,720 363,280 $ 1,051 0.3% Cash at end of period Unrestricted 3,836,499 3,286,389 $ 550,110 16.7% Restricted 436,696 364,331 $ 72,365 19.9% Total Cash at end of period $ 4,273,195 $ 3,650,720 $ 622,475 17.1%
The accompanying notes are an integral part of these financial statements. -5- 37 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES CENTRAL ADMINISTRATION Statements of Operations For the year ending June 30, 2018 and 2017 Increase (Decrease) Revenue: June 30, 2018 2017 Change Percent License Plate Fees $ 719,450 $ 738,576 $ (19,126) -2.6% Capital Improvement 66,219 65,161 $ 1,058 1.6% Rental Income: Dayton Valley Turf 26,400 26,400 -$ 0.0% Diamond Mountain Distributors 85,200 90,000 $ (4,800) -5.3% Jacob's Trading Company 7,200 7,200 -$ 0.0% Total Rental Income 118,800 123,600 $ (4,800) -3.9% Administrative Fees: (Net of reimbursements) Jacob's Trading Company 13,859 23,675 $ (9,816) -41.5% Miscellaneous Programs 48 75 $ (27) -36.0% Diamond Mountain Distributors (15,860) 56,698 $ (72,558) -128.0% Erickson Framing NV 9,889 Prison Ranch 48,000 48,000 -$ 0.0% Total Administrative Fees 55,936 128,448 $ (72,512) -56.5% Miscellaneous Revenue 29,301 3,756 $ 25,545 680.1% Total Revenue $ 989,706 $ 1,059,541 $ (69,835) -6.6%
General and Administrative Expenses: June 30, 2018 2017 Change Percent Staff Salaries $ 509,819 $ 458,657 $ 51,162 11.2% Staff Fringe Benefits and other Payroll expenses 200,256 179,047$ 21,209 11.8% Travel expenses 8,799 11,637$ (2,838) -24.4% Rent 43,630 37,461$ 6,169 16.5% Miscellaneous Office expenses 2,197 2,630 $ (433) -16.5% Telephone 13,879 12,338$ 1,541 12.5% Postage and Mailing 1,565 1,119 $ 446 39.9% Advertising/Public Relations 219 7,875$ (7,656) -97.2% General Insurance 11,904 7,254$ 4,650 64.1% Vehicle Operating expenses 8,793 4,775 $ 4,018 84.1% Dues and Subscriptions 4,301 2,506 $ 1,795 71.6% Depreciation expense 86,579 86,579 -$ 0.0% Utilities 3,604 2,356 $ 1,248 53.0% Bad Debt expense (Note 16) - 70,000 $ (70,000) -100.0% State Cost Allocation 145,015 270,373 $ (125,358) -46.4% Attorney General Cost Allocation 37,585 40,032 $ (2,447) -6.1% EITS Assessment 5,516 4,964 $ 552 11.1% Purchasing Assessment 5,788 5,769 $ 19 0.3% Credit Card Processing Fees 6,985 7,068 $ (83) -1.2% Committee on Industrial Programs Reimbursement 3,667 863 $ 2,804 324.9% Equipment Rental 3,588 3,588 -$ 0.0% Miscellaneous expenses 1,487 8,169 $ (6,682) -81.8% Total General and Administrative Expenses $ (1,105,539) (1,225,060) $ 119,521 -9.8% Net Income from Operations (115,833) (165,519) $ 49,686 -30.0% Other Income (expense) CIP Improvements (14,343) (14,343) $ 14,343 -100% Interest Revenue 56,839 28,547 $ 28,292 99.1% Finance Charges 80 181 $ (101) -55.8% Earnings available for program support or (Net Loss) $ (73,257) $ (151,134) $ 77,877 -51.5%
38 The accompanying notes are an integral part of these financial statements. -6- NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES NNCC MATTRESS Statements of Operations For the year ending June 30, 2018 and 2017
June 30, Increase (Decrease) Revenue: June 30, 2018 2017 Change Percent Sales - Mattress $ 312,247 $ 367,844 $ (55,597) -15.1% Less Cost of Sales: Direct Labor $ 12,367 16,582 $ (4,215) -25.4% Materials 177,606 197,443 $ (19,837) -10.0% Overhead 22,147 24,144 $ (1,997) -8.3% Total Cost of Sales (212,120) (238,169) $ 26,049 -10.9% Gross Profit 100,127 129,675$ (29,548) -22.8% Freight Revenues 10,468 21,155 $ (10,687) -50.5% Freight Expenses (16,399) (14,517) $ (1,882) 13.0% Freight (Net of Revenues/Expenses) (5,931) 6,638 $ (12,569) -189.3% Contribution to G & A expenses - Mattress $ 94,196 136,313 $ (42,117) -30.9%
General and Administrative Manufacturing Expenses: Salaries 15,740 16,293 $ (553) -3.4% Fringe Benefits and other Payroll expenses 8,250 6,460$ 1,790 27.7% Inmate Labor - Office 3,411 6,045 $ (2,634) -43.6% Inmate Workers' Compensation Insurance 832 1,050 $ (218) -20.8% Travel 440 238 $ 202 84.9% Miscellaneous Office expenses 1,200 1,010 $ 190 18.8% Telephone - 207 $ (207) -100.0% Dues and Subscriptions 352 922 $ (570) -61.8% Improvements and Small Equipment - 646 $ (646) -100.0% Building & Grounds Improvements 195 16 $ 179 1118.8% Utilities 2,898 3,908 $ (1,010) -25.8% Miscellaneous expenses 1,242 2,356 $ (1,114) -47.3% Capitalized Institutional Overhead (1,650) 162 $ (1,812) -1118.5% Total General and Administrative Manufacturing Expenses (32,910) (39,313) $ 6,403 -16.3% Earnings available for program support or (Net Loss) $ 61,286 $ 97,000 $ (35,714) -36.8%
The accompanying notes are an integral part of these financial statements. -7- 39 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES NNCC PRINTING/BINDERY Statements of Operations For the year ending June 30, 2018 and 2017
June 30, Increase (Decrease) Revenue: June 30, 2018 2017 Change Percent Sales $ 448,609 $ 525,506 $ (76,897) -14.6% Less Cost of Sales: Direct Labor $ 22,543 34,631 $ (12,088) -34.9% Materials 219,050 257,863$ (38,813) -15.1% Overhead 56,656 56,649 $ 7 0.0% Total Cost of Sales (298,249) (349,143) $ 50,894 -14.6% Gross Profit 150,360 176,363$ (26,003) -14.7% Freight Revenues 9,909 10,506 $ (597) -5.7% Freight Expenses (9,145) (10,513) $ 1,368 -13.0% Freight (Net of Revenues/Expenses) 764 (7) $ 771 -11014% Contribution to G & A expenses $ 151,124 176,356 $ (25,232) -14.3%
General and Administrative Manufacturing Expenses: Salaries 71,451 69,800 $ 1,651 2.4% Fringe Benefits and other Payroll expenses 22,854 21,251 $ 1,603 7.5% Inmate Labor - Office 7,941 7,742 $ 199 2.6% Inmate Workers' Compensation Insurance 1,041 1,181 $ (140) -11.9% Travel 1,320 910 $ 410 45.1% Miscellaneous Office expenses 3,389 1,544 $ 1,845 119.5% Telephone 273 207 $ 66 31.9% Advertising/Public Relations 117 - $ 117 100.0% Dues and Subscriptions 512 458 $ 54 11.8% Improvements and Small Equipment - 2,500 $ (2,500) -100.0% Building & Ground Improvements 319 - $ 319 100.0% Utilities 3,405 1,460 $ 1,945 133.2% Miscellaneous expenses 1,154 1,360 $ (206) -15.1% Capitalized Institutional Overhead (299) 128 $ (427) -333.6% Total General and Administrative Manufacturing Expenses (113,477) (108,541) $ (4,936) 4.5% Earnings available for program support or (Net Loss) $ 37,647 $ 67,815 $ (30,168) -44.5%
40 The accompanying notes are an integral part of these financial statements. -8- NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES NNCC FURNITURE AND METAL Statements of Operations For the year ending June 30, 2018 and 2017
June 30, Increase (Decrease) Revenue: June 30, 2018 2017 Change Percent Sales - Furniture $ 414,724 $ 455,035 $ (40,311) -8.9% Less Cost of Sales: Direct Labor $ 9,925 16,590 $ (6,665) -40.2% Materials 194,584 262,959 $ (68,375) -26.0% Overhead 39,475 54,357 $ (14,882) -27.4% Total Cost of Sales (243,984) (333,906) $ 89,922 -26.9% Gross Profit 170,740 121,129 $ 49,611 41.0% Freight Revenues 16,495 9,211 $ 7,284 79.1% Freight Expenses (17,000) (4,600) $ (12,400) 269.6% Freight (Net of Revenues/Expenses) (505) 4,611 $ (5,116) -111.0% Contribution to G & A expenses $ 170,235 125,740 $ 44,495 35.4%
Sales - Metal 396,386 847,650 $ (451,264) -53.2% Less Cost of Sales: Direct Labor 31,562 95,409 $ (63,847) -66.9% Materials 209,097 431,013 $ (221,916) -51.5% Overhead 55,161 101,623 $ (46,462) -45.7% Total Cost of Sales (295,820) (628,045) $ 332,225 -52.9% Contribution to G & A expenses $ 100,566 219,605 $ (119,039) -54.2%
General and Administrative Manufacturing Expenses: Salaries 31,479 32,586$ (1,107) -3.4% Fringe Benefits and other Payroll expenses 16,500 12,921$ 3,579 27.7% Inmate Labor - Office 9,483 9,637 $ (154) -1.6% Inmate Workers' Compensation Insurance 3,041 4,400$ (1,359) -30.9% Travel 1,343 1,323 $ 20 1.5% Miscellaneous Office expenses 6,955 6,361 $ 594 9.3% Telephone 546 414 $ 132 31.9% Bond Expense 400 500 $ (100) -20.0% Dues and Subscriptions 54 173 $ (119) -68.8% Improvements and Small Equipment - 3,000 $ (3,000) -100.0% Building & Grounds Improvements 95 425 $ (330) -77.6% Utilities 21,245 26,422 $ (5,177) -19.6% Miscellaneous expenses 8,323 12,758 $ (4,435) -34.8% Capitalized Institutional Overhead (8,000) 18,364 $ (26,364) -143.6% Total General and Administrative Manufacturing Expenses (91,464) (129,284) $ 37,820 -29.3% Earnings available for program support or (Net Loss) $ 179,337 $ 216,061 $ (36,724) -17.0%
The accompanying notes are an integral part of these financial statements. -9- 41 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES SDCC AUTO and UPHOLSTERY Statements of Operations For the year ending June 30, 2018 and 2017
June 30, Increase (Decrease) Revenue: June 30, 2018 2017 Change Percent Sales From Auto/Upholstery $ 91,173 $ 174,300 $ (83,127) -47.7% Less Cost of Sales: Direct Labor $ 14,805 8,725 $ 6,080 69.7% Materials 48,953 46,939 $ 2,014 4.3% Overhead 25,916 38,255 $ (12,339) -32.3% Total Cost of Sales (89,674) (93,919) $ 4,245 -4.5% Gross Profit 1,499 80,381 $ (78,882) -98.1% Contribution to G & A expenses - Auto/Upholstery $ 1,499 80,381 $ (78,882) -98.1%
Net Proceeds from Manpower Operations: Diamond Mountain Distributors 10,223 5,039 $ 5,184 102.9% Opportunity Village 1,482 (78) $ 1,560 -2000.0% Contribution to G & A expenses - Manpower Operations 11,705 4,961 $ 6,744 135.9%
General and Administrative Manufacturing Expenses: Salaries 39,532 47,843 $ (8,311) -17.4% Fringe Benefits and other Payroll expenses 12,515 28,641$ (16,126) -56.3% Inmate Labor - Office 10,072 9,873 $ 199 2.0% Inmate Workers' Compensation Insurance 827 888 $ (61) -6.9% Miscellaneous Office expenses 294 2,073$ (1,779) -85.8% Telephone 1,043 756 $ 287 38.0% Postage and Mailing 390 990 $ (600) -60.6% Bond Expense - 500 $ (500) -100.0% Dues, Subscriptions, and Licenses 327 327 -$ 0.0% Building and Grounds Improvements - 109 $ (109) -100.0% Utilities 10,405 13,873 $ (3,468) -25.0% Miscellaneous expenses 3,780 4,003 $ (223) -5.6% Capitalized Institutional Overhead (2,083) (6,068) $ 3,985 -65.7% Warranty expense 2,280 188 $ 2,092 1112.8% Total General and Administrative Manufacturing Expenses (79,382) (103,996) $ 24,614 -23.7% Earnings available for program support or (Net Loss) $ (66,178) $ (18,654) $ (47,524) 254.8%
42 The accompanying notes are an integral part of these financial statements. -10- NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES LCC GARMENT FACTORY Statements of Operations For the year ending June 30, 2018 and 2017
June 30, Increase (Decrease) Revenue: June 30, 2017 2017 Change Percent Sales - Garment $ 1,113,760 $ 881,796 $ 231,964 26.3% Less Cost of Sales: Direct Labor $ 293,286 182,019 $ 111,267 61.1% Materials 287,591 216,723 $ 70,868 32.7% Overhead 109,872 86,740 $ 23,132 26.7% Total Cost of Sales (690,749) (485,482) $ (205,267) 42.3% Gross Profit 423,011 396,314 $ 26,697 6.7% Freight Revenues 58,050 28,077 $ 29,973 106.8% Freight Expenses (50,185) (33,046) $ (17,139) 51.9% Freight (Net of Revenues/Expenses) 7,865 (4,969) $ 12,834 -258.3% Contribution to G & A expenses $ 430,876 391,345 $ 39,531 10.1%
General and Administrative Manufacturing Expenses: Salaries 59,130 57,427 $ 1,703 3.0% Fringe Benefits and other Payroll expenses 36,019 34,013 $ 2,006 5.9% Inmate Labor - Office 18,151 15,648 $ 2,503 16.0% Inmate Workers' Compensation Insurance 8,940 6,244 $ 2,696 43.2% Travel 140 1,482 $ (1,342) -90.6% Miscellaneous Office expenses 7,496 5,750 $ 1,746 30.4% Telephone 712 610 $ 102 16.7% Postage and Mailing 68 420 $ (352) -83.8% Dues and Registrations - 360 $ (360) -100.0% Building and Grounds Improvements 454 3,059 $ (2,605) -85.2% Utilities 10,450 13,505 $ (3,055) -22.6% Miscellaneous expenses 4,119 2,720 $ 1,399 51.4% Capitalized Institutional Overhead (208) (907) $ 699 -77.1% Total General and Administrative Manufacturing Expenses (145,471) (140,331) $ (5,140) 3.7% Earnings available for program support $ 285,405 $ 251,014 $ 34,391 13.7%
The accompanying notes are an integral part of these financial statements. -11- 43 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES PRISON RANCH Statements of Operations For the year ending June 30, 2018 and 2017 June 30, Revenue: June 30, 2018 2017 Increase (Decrease) Revenue - Livestock Change Percent Sales $ 89,796 $ 91,486 $ (1,690) -1.8% Non-Cash Inventory Adjustments 14,260 3,230 $ 11,030 341.5% Total Revenue $ 104,056 94,716 $ 9,340 9.9% Less Cost of Sales: Direct Labor 5,735 6,581 $ (846) -12.9% Materials 62,789 50,682$ 12,107 23.9% Overhead 11,707 8,775 $ 2,932 33.4% Total Cost of Sales (80,231) (66,038) $ (14,193) 21.5% Contribution to G & A expenses - Livestock $ 23,825 28,678 $ (4,853) -16.9% Sales - Dairy 550,585 522,160 $ 28,425 5.4% Less Cost of Sales: Direct Labor 63,683 51,715 $ 11,968 23.1% Materials 211,101 235,564 $ (24,463) -10.4% Overhead 141,122 126,287 $ 14,835 11.7% Total Cost of Sales (415,906) (413,566) $ (2,340) 0.6% Contribution to G & A expenses - Dairy 134,679 108,594 $ 26,085 24.0% Revenue - Crops Sales 146,388 127,918 $ 18,470 14.4% Non-Cash Inventory Adjustments (38,608) 15,864 $ (54,472) -343.4% Total Revenue 107,780 143,782 $ (36,002) -25.0% Less Cost of Sales: Direct Labor 24,431 28,672 $ (4,241) -14.8% Materials 4,710 2,960 $ 1,750 59.1% Overhead 56,957 106,842 $ (49,885) -46.7% Total Cost of Sales (86,098) (138,474) $ 52,376 -37.8% (Gross Loss) Contribution to G & A expenses - Crops 21,682 5,308 $ 16,374 308.5% Boarding Fees - Estray Horses 10,026 8,321 $ 1,705 20.5% Less Cost of Sales: Direct Labor - - -$ 0.0% Materials 5,712 1,221 $ 4,491 367.8% Overhead - 2,319 $ (2,319) -100.0% Total Cost of Sales (5,712) (3,540) $ (2,172) 61.4% Contribution to G & A expenses - Estray Horse Boarding 4,314 4,781 $ (467) -9.8% Boarding Fees - BLM (Wild) Horses 1,232,809 1,521,265 $ (288,456) -19.0% Less Cost of Sales: Direct Labor 73,867 116,263 $ (42,396) -36.5% Materials 581,793 760,741 $ (178,948) -23.5% Overhead 226,726 211,861 $ 14,865 7.0% Total Cost of Sales (882,386) (1,088,865) $ 206,479 -19.0% Contribution to G & A expenses - BLM Wild Horse Boarding 350,423 432,400 $ (81,977) -19.0% Composting Project 64,654 48,764 $ 15,890 32.6% Less Cost of Sales: Direct Labor 34,652 21,058 $ 13,594 64.6% Overhead - - -$ 0.0% Total Cost of Sales (34,652) (21,058) $ (13,594) 64.6% Contribution to G & A expenses - Composting Project $ 30,002 $ 27,706 $ 2,296 8.3%
44 The accompanying notes are an integral part of these financial statements. -12- NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES PRISON RANCH Statements of Operations For the year ending June 30, 2018 and 2017 (Continued) June 30, June 30, 2018 2017 Increase (Decrease) General and Administrative Ranch Expenses: Change Percent Salaries - Staff $ 243,940 $ 270,207 $ (26,267) -9.7% Fringe Benefits and other Payroll expenses 105,933 99,937$ 5,996 6.0% Inmate Labor - Office 7,364 13,880$ (6,516) -46.9% Inmate Workers' Compensation Insurance 4,971 5,584 $ (613) -11.0% Travel expenses 534 1,979 $ (1,445) -73.0% Miscellaneous Office expenses 1,993 3,010$ (1,017) -33.8% Telephone 845 780 $ 65 8.3% Freight, Postage and Mailing 24 40 $ (16) -40.0% Advertising/Public Relations 584 581 $ 3 0.5% Insurance 14,977 9,238$ 5,739 62.1% Dues and Subscriptions - 347 $ (347) -100.0% Building and Grounds Improvements 3,075 9,315$ (6,240) -67.0% Utilities 45,578 69,943$ (24,365) -34.8% State Cost Allocation 17,394 18,729$ (1,335) -7.1% EITS Assessment 1,741 1,113 $ 628 56.4% Purchasing Assessment 6,957 7,204 $ (247) -3.4% Vehicle Operations 224 1,446 $ (1,222) -84.5% Miscellaneous expenses 2,908 5,156 $ (2,248) -43.6% Administration Fees 48,000 48,000 -$ 0.0%
Total General and Administrative Manufacturing Expenses $ (507,042) $ (566,489) $ 59,447 -10.5% Earnings available for program support or (Net loss) $ 57,883 $ 40,978 $ 16,905 41.3%
The accompanying notes are an integral part of these financial statements. -13- 45 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES SCHEDULE OF INTERFUND SALES For the year ending June 30, 2018 and 2017
PER STATEMENTS AFTER OF INTERFUND REMOVING OPERATIONS SALES INTERFUND SALES June 30, Increase (Decrease) Revenue: June 30, 2018 2017 Change Percent Industry Sales $ 2,776,899 $ (22,246) $ 2,754,653 $ 3,237,548 $ (482,895) -14.9% Less Cost of Sales (1,830,596) 17,150 (1,813,446) (2,121,662) $ 308,216 -14.5% Gross Profit from Industry Sales 946,303 (5,096) $ 941,207 $ 1,115,886 $ (174,679) -15.7% Ranch Sales 2,069,910 (122,021) 1,947,889 2,225,933 $ (278,044) -12.5% Less Cost of Sales (1,504,985) 122,021 (1,382,964) (1,618,466) $ 235,502 -14.6% Gross Profit from Ranch Sales 564,925 - 564,925 607,467 $ (42,542) -7.0% Freight (Net of Revenues/Expenses) 2,193 2,193 6,273 $ (4,080) -65.0% General Manufacturing Expenses: Staff Salaries 461,272 461,272 494,156 $ (32,884) -6.7% Staff Fringe Benefits and other Payroll expenses 202,071 202,071 203,223 $ (1,152) -0.6% Inmate Labor 56,422 56,422 62,825 $ (6,403) -10.2% Inmate Worker's Compensation Ins. 19,652 19,652 19,347 $ 305 1.6% Travel expenses 3,777 3,777 5,932 $ (2,155) -36.3% Office expenses 21,327 (3,666) 17,661 17,504 $ 157 0.9% Telephone 3,419 3,419 2,974 $ 445 15.0% Postage and Mailing 482 482 1,450 $ (968) -66.8% Advertising/Public Relations 701 (194) 507 - $ 507 100.0% Insurance/Bond Expense 15,377 15,377 10,238 $ 5,139 50.2% Dues and Subscriptions 1,245 1,245 2,587 $ (1,342) -51.9% Improvements and Small Equipment - - 6,146 $ (6,146) -100.0% Building & Grounds Improvements 4,138 4,138 12,924 $ (8,786) -68.0% Utilities 93,981 93,981 129,111 $ (35,130) -27.2% Administrative Fees 48,000 48,000 48,000 -$ 0.0% State Cost Allocation - Ranch 17,394 17,394 18,729$ (1,335) -7.1% EITS Assessment - Ranch 1,741 1,741 1,113 $ 628 56.4% Purchasing Assessment - Ranch 6,957 6,957 7,204 $ (247) -3.4% Vehicle Operations - Ranch 224 224 1,446 $ (1,222) -84.5% Miscellaneous expenses 21,526 (306) 21,220 28,353 $ (7,133) -25.2% Capitalized Institutional Overhead (12,240) (12,240) 11,679 $ (23,919) -204.8% Warranty expense 2,280 2,280 188 $ 2,092 1112.8% Total General Manufacturing Expenses: (969,746) (4,166) (965,581) (1,085,129) $ 119,548 -11.0% Net Income from Operations: $ 543,675 $ 930 $ 542,745 $ 644,497 $ (101,752) -15.8%
46 The accompanying notes are an integral part of these financial statements. -14- NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES SCHEDULE OF INTERFUND SALES For the year ending June 30, 2018 and 2017 (Continued)
PER STATEMENTS AFTER OF ELIMINATION REMOVING OPERATIONS ENTRIES INTERFUND SALES June 30, June 30, 2018 2017 General and Increase (Decrease) Administrative Expenses: Change Percent Staff Salaries $ 509,819 $ 509,819 $ 458,657 $ 51,162 11.2% Staff Fringe Benefits and other Payroll expenses 200,256 200,256 179,047 $ 21,209 11.8% Travel expenses 8,799 8,799 11,637 $ (2,838) -24.4% Rent 43,630 43,630 37,461 $ 6,169 16.5% Office expenses 2,197 (212) 1,985 2,411 $ (426) -17.7% Telephone 13,879 13,879 12,338 $ 1,541 12.5% Postage and Mailing 1,565 1,565 1,119 $ 446 39.9% Advertising/Public Relations 219 (219) - 3,749 $ (3,749) -100.0% General Insurance 11,904 11,904 7,254 $ 4,650 64.1% Vehicle expenses 8,793 (499) 8,294 4,364 $ 3,930 90.1% Dues and Subscriptions 4,301 4,301 2,506 $ 1,795 71.6% Depreciation expense 86,579 86,579 86,579 -$ 0.0% Utilities 3,604 3,604 2,356 $ 1,248 53.0% Bad Debt expense - - 70,000 $ (70,000) -100.0% State Cost Allocation 145,015 145,015 270,373 $ (125,358) -46.4% Attorney General Cost Allocation 37,585 37,585 40,032 $ (2,447) -6.1% EITS Assessment 5,516 5,516 4,964 $ 552 11.1% Purchasing Assessment 5,788 5,788 5,769 $ 19 0.3% Credit Card Processing Fees 6,985 6,985 7,068 $ (83) -1.2% Committee on Industrial Programs Rei 3,667 3,667 863 $ 2,804 324.9% Equipment Rental 3,588 3,588 3,588 -$ 0.0% Miscellaneous expenses 1,487 1,487 8,169 $ (6,682) -81.8% Total General and Administrative Expenses (1,105,539) (930) $ (1,104,609) $ (1,220,304) $ 115,695 -9.5% Other Income (Expenses) Interest Revenue 56,839 56,839 28,547 $ 28,292 99.1% Finance Charges 80 80 181 $ (101) -55.8% License Plate Fees 719,450 719,450 738,576 $ (19,126) -2.6% Capital Improvement 51,876 51,876 50,818 $ 1,058 2.1% Rental Income 118,800 118,800 123,600 $ (4,800) -3.9% Administrative Fees 67,641 67,641 133,409 $ (65,768) -49.3% Miscellaneous Revenue 29,301 29,301 3,756 $ 25,545 680.1% Earnings Available for Program Support $ 482,123 $ - $ 482,123 $ 503,079 $ (20,956) -4.2%
The accompanying notes are an integral part of these financial statements. -15- 47 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
1. Summary of Significant Accounting Policies
(a) Organization
Silver State Industries is a division of the Nevada Department of Corrections. The division produces and sells various products and services to governmental and private organizations as well as individuals.
(b) Inventories
Inventories are stated at the lower of cost or market, using the first-in, first-out method.
(c) Livestock and Crops
The Ranch’s Dairy and Livestock sections use the unit-livestock-price method of valuing their livestock inventories, except for any livestock purchased, which is valued at the lower of cost or market. Crops are valued using the farm-price method of valuation.
(d) Land Improvements, Property, and Equipment
Land improvements, property, and equipment are stated at cost and are depreciated over their estimated useful lives of 3 to 40 years using the straight-line method. The capitalization threshold is established by the Nevada Controller’s office is currently is $5,000 for equipment and $100,000 for buildings.
(e) Income Taxes
Silver State Industries is a division of the Nevada Department of Corrections, and is organized exclusively for public purposes and, accordingly, is exempt from federal income taxes.
(f) Cash
The cash of Silver State Industries is under the direct control of the Controller of the State of Nevada. The cash balance is accounted for with other state funds and is classified as an enterprise fund on the state’s balance sheet. Silver State Industries classifies cash as either nonrestricted or restricted as follows: (1) Nonrestricted cash is made up of cash received by Prison Industries (budget account 3719) and Prison Ranch (budget account 3727) and may be expended, within budgetary constraints, to support the day-to-day activities of the division. (2) Restricted cash is made up of revenue received by P I Capital Projects (budget account 3728) is restricted in its use. NRS 209.192 states that it may be used to relocate, expand, upgrade or modify an existing industry in the industrial program to enhance or improve operations or security. It allows for the purchase or lease of equipment to be used for the training of offenders or Prison Industries’ operation. It may pay or fund the operations of Prison Industries and advertise and promote good and services provided by PI. It is funded by five percent of each offender’s gross wages who works for Silver State Industries either directly or through a private company under contract with Silver State Industries.
(g) Reporting Entity
Governmental Accounting and Financial Reporting Principles require that combined financial statements be presented for governmental entities which present financial statements in accordance with generally accepted accounting principles. The accompanying financial statements are not intended to present the combined financial activities of the Department of Corrections taken as a
16 48 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
whole. They are intended only to present the financial activities of Fund 525, Prison Industry Fund dba Silver State Industries, which is composed of the Prison Industry, Prison Ranch, and PI Capital Improvement budget accounts.
(h) Basis of Accounting
The financial statements of Silver State Industries are prepared on the accrual basis of accounting. Under the accrual basis, revenues are recognized when they are earned and expenses are recognized when they are incurred.
(i) Encumbrances
An encumbrance system is utilized as a form of budgetary control to account for purchase orders, contracts, or other legal commitments. For budgetary purposes, encumbrances are recorded as expenses in the accounting period in which the encumbrance was originally established. For financial reporting purposes, encumbrances are recorded as expenses in the accounting period in which the liability is incurred, in accordance with generally accepted accounting principles.
2. Land, Land Improvements, Property, and Equipment
Land, land improvements, property, and equipment consist of the following:
2018 2017
Land 153,140 153,140 Land Improvements 1,982,000 1,982,000 Buildings 908,227 908,227 Furniture and Equipment 1,164,476 1,164,476 Fixed Assets at Cost 4,207,844 4,207,844 Less Accumulated Depreciation (3,720,297) (3,600,200) Net Fixed Assets $ 487,547 $ 607,644
Depreciation expense was applied to either cost of sales through overhead or general and administrative expenses, depending on the nature of the capital asset. At June 30, 2018, and 2017, depreciation expense was applied as follows:
Cost Center 2018 2017 Central Administration 86,579 86,579 NNCC Mattress 00 NNCC Metal 0 0 NNCC Furniture 00 Ranch Livestock 0 0 Ranch Crops 12,646 12,646 Ranch Dairy 6,529 6,529 CIP Fund 14,343 14,343 Total Depreciation Expense $ 120,097 $ 120,097
17 49 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
3. Inventories Inventories at June 30, 2018, consisted of the following:
Cost Center Raw Materials Work in Finished Operating Total Process Goods Supplies NNCC 82,090 0 33,386 0 115,476 Mattress NNCC 87,910 6,195 10,550 1,063 105,718 Print/Bindery NNCC Metal 35,112 40,283 0 6,095 81,490 NNCC 69,837 100,800 23,772 5,875 200,284 Furniture SDCC Auto 62,779 71,280 1,153 2,176 137,388 SDCC 2,864 0 0 0 2,864 BigHouse Choppers LCC Garment 119,123 0 39,050 0 158,173
Total $ 459,715 $ 218,558 $ 107,911 $ 15,209 $ 801,391
Inventories at June 30, 2017, consisted of the following:
Cost Center Raw Materials Work in Finished Operating Total Process Goods Supplies NNCC 55,915 0 37,166 0 93,081 Mattress NNCC 50,442 0 279 1,494 52,215 Print/Bindery NNCC Metal 31,997 101,326 0 5,840 139,163 NNCC 69,320 21,416 18,257 6,114 115,107 Furniture SDCC Auto 63,346 47,215 4,645 774 115,980 SDCC 2,870 0 35,568 0 38,438 BigHouse Choppers LCC Garment 93,322 0 20,169 0 113,491
Total $ 367,212 $ 169,957 $ 116,084 $ 14,222 $ 667,475
18 50 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
4. Commitments and Contingencies Silver State Industries administrative offices are located at the Casa Grande facility in Las Vegas and the Stewart Facility in Carson City. There are no contracts in place for either of these facilities. As such, no provisions for commitments are included in these financial statements. 5. Unearned Revenue
Unearned revenue represents moneys that customers have paid in advance of receiving merchandise or from overpaying their account. At June 30, 2018, and 2017, $145,420 and $119,997 of such moneys had been received, respectively. 6. Deposits
Silver State Industries no longer manufactures “Bighouse Choppers™”, which are custom-made motorcycles. However, Industries still manufactures metal utility trailers. In order to obtain business licenses through the Nevada Department of Motor Vehicles, deposits totaling $15,000 were made for licenses to manufacture trailers and to act as a dealer.
19 51 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
7. Livestock
The Ranch’s Livestock inventory at June 30, 2018, consisted of the following:
Type of Number in Unit— Dairy Livestock Total Livestock Herd Livestock Value Holstein Bred 33 1,250 0 41,250 41,250 Heifers Milking Cows 82 900 73,800 73,800 Beef Calves 65 500 0 32,500 32,500 Beef Cows 83 1,200 0 99,600 99,600 Unweaned 12 50 0 600 600 Calves Yearling 4 450 0 1,800 1,800 Holstein Heifers Weaned 38 250 0 9,500 9,500 Heifers Weaned 1 700 0 700 700 Holstein Breeding Bulls Beef Bulls 2 2,500 0 5,000 5,000 Dairy Bulls 3 1,000 3,000 0 3,000 Dry Cows 21 900 18,900 0 18,900 Yearling Beef 4 600 0 2,400 2,400 Heifers Weaned 6 180 0 1,080 1,080 Holstein Steers Beef Heifers 16 1,200 19,200 19,200 Bred Grand Total 370 $ 95,700 $ 213,630 $ 309,330
20 52 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
The Ranch’s Livestock inventory at June 30, 2017, consisted of the following:
Type of Number in Unit— Dairy Livestock Total Livestock Herd Livestock Value Holstein Bred 37 1,250 0 46,250 46,250 Heifers Milking Cows 85 900 76,500 0 76,500 Beef Calves 49 500 0 24,500 24,500 Beef Cows 79 1,200 0 94,800 94,800 Unweaned 13 50 0 650 650 Calves Yearling 0 450 0 0 0 Holstein Heifers Weaned 33 250 0 8,250 8,250 Heifers Weaned 0 700 0 0 0 Holstein Breeding Bulls Beef Bulls 2 2,500 0 5,000 5,000 Dairy Bulls 3 1,000 3,000 0 3,000 Dry Cows 19 900 17,100 0 17,100 Yearling Beef 28 600 0 16,800 16,800 Heifers Weaned 4 180 0 720 720 Holstein Steers Beef Heifers 2 1,200 0 2,400 2,400 Bred Grand Total 354 $ 96,600 $ 199,370 $ 295,970
8. Accounts Receivable
Accounts receivable at June 30, 2018, consist of the following:
CUSTOMER TYPE AMOUNT PERCENTAGE OF TOTAL Private Sector 170,289 25.0% Department of Corrections 233,469 34.2% Other State Agencies 219,032 32.1% Other Governments 59,019 8.7% Total Accounts Receivable 681,809 Less Allowance for Doubtful (4,953) Accounts Net Realizable Value $ 676,856
21 53 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
The Department of Corrections, state agencies, and other governments are not a bad debt concern. PI has not experienced any problems in collecting their balances. The private sector accounts receivables consist of 22 individual accounts as of June 30, 2018. The largest private sector account’s balance represents 7.5% of the total receivables at $51,067. The second largest customer accounts receivables balance is $28,239 or 4.1% of the receivables. Coming in third is $14,660 for 2.2% of total receivables. Fourth is $14,069 with a 2.1% share while fifth is $7,428 at 1.1%. All other private sector customers have minimal balances. All customers have subsequently paid their balances owed.
Accounts receivable at June 30, 2017, consist of the following:
CUSTOMER TYPE AMOUNT PERCENTAGE OF TOTAL Private Sector 178,397 21.8% Department of Corrections 183,220 22.4% Other State Agencies 202,960 24.9% Other Governments 252,146 30.9% Total Accounts Receivable 816,723 Less Allowance for Doubtful (4,953) Accounts Net Realizable Value $ 811,770
In fiscal year 2017 private sector accounts receivables consisted of 21 individual accounts as of June 30, 2017. The largest private sector account’s balance represented 4% of the total receivables at $32,979. The second largest customer accounts receivables balance was $14,690 or 1.8% of the receivables. Next was $12,594 for 1.5% of total receivables. All other private sector customers had minimal balances. All customers subsequently paid their balances owed.
9. Accounts Payable
Accounts payable at June 30, 2018, consisted of the following:
GROUP AMOUNT Private Section Vendors 156,085 Department of Corrections 54,747 Other State Agencies 32,593 Total $ 243,425
Accounts payable at June 30, 2017, consisted of the following:
GROUP AMOUNT Private Section Vendors 54,728 Department of Corrections 89,008 Other State Agencies 266,265 Total $ 410,001
22 54 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
10. Retirement Plan
The employees of the Department of Corrections participate in one or the other of two retirement plans administered by the Nevada Public Employees’ Retirement System. Each has two sub-plans; Regular members and Police/Fire members. Under the Employee/Employer Contribution Plan, the employee and Silver State Industries each contribute 14.5% (Regular) or 20.75% (Police/Fire) of the employee’s gross earnings not including overtime and/or terminal leave. Under the Employer-Pay Contribution Plan, Silver State Industries alone contributes 28% (Regular) or 40.5% (Police/Fire) of the employee’s gross earnings not including overtime and/or terminal leave. NRS 286.110 provides that a participating public employer, which includes State agencies, is not liable for any obligations of the Public Employees’ Retirement System. Current contribution rates and income of the Public Employees’ Retirement System are actuarially projected to fully fund its obligations over a 23-year period. The state's ending net pension liability for Prison Industries was (amount pending) as of June 30, 2018, and $2,578,539 as of June 30, 2017.
11. Annual and Sick Leave Benefits
When compensatory time, annual leave, and sick leave benefits are not taken as they are earned, they accumulate to be carried over to the next year, except for annual leave in excess of 30 days. Accumulated annual leave and compensatory time are payable upon termination; however, sick leave is not, except that unused sick leave over 30 days may be partially compensated upon retirement, termination, or death, calculated at a rate of 50% of the value had it been used. The estimated liability as of June 30, 2018, was (amount pending) and at June 30, 2017, was $158,578.
12. Interest and Finance Charge Revenue
(a) Interest Revenue
Silver State Industries (SSI) deposits all cash receipts into the State of Nevada’s bank account. All cash transferred from other State agencies, is made via a billing claim or journal voucher into SSI’s budget account. At the end of each quarter, the State Treasurer’s office computes and transfers interest earned into SSI’s budget account. During the years ended June 30, 2018, and 2017, interest received was $56,839 and $28,547, respectively.
(b) Finance Charge Revenue
During fiscal year 1993, the State Legislature passed a bill directing Silver State Industries to charge a 1.5% per month finance charge on private sector sale invoices not paid when due. During the years ended June 30, 2018, and 2017, finance charge revenue amounted to $80 and $181, respectively.
13. Offender Labor
The major objective of the prison industry program is to provide jobs for offenders and, as such, offenders are the major source of labor used in Silver State Industries’ operations. Silver State Industries uses two methods of working offenders. The first is through its own operations. No income or social security taxes are withheld from the offenders’ wages. Gross wages are reported to the individual and the Internal Revenue Service via a Form 1099. The second method is through private industries operating within an institution. The employer withholds income and social security taxes from the offender wages.
In both cases above, assessments are made from the offenders’ gross wages to support the following programs:
23 55 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
(a) Room and Board (R & B) Twenty-four and one-half percent of offenders’ gross wages are assessed to defray some of the costs incurred by the State to house the offenders. (b) Victims of Crimes Fund (VCF) Five percent of offenders’ gross wages are assessed for this fund. (c) Prison Industries Capital Improvement Fund (PICI) Five percent of offenders’ gross wages are assessed for future Prison Industry programs. During the year ended June 30, 2018, the following are the assessments made to the corresponding program they supported:
INSTITUTION (a)R & B (b)VCF (c)PICI TOTAL NNCC 50,792 10,367 10,367 71,526 SCC 52,945 10,806 10,806 74,557 LCC 92,422 18,863 18,863 130,148 FMWCC 52,215 10,657 10,657 73,529 SDCC 25,547 5,214 5,214 35,975 WSCC 2,830 578 578 3,986 HDSP 47,694 9,734 9,734 67,162
Total $ 324,445 $ 66,219 $ 66,219 $ 456,883
During the year ended June 30, 2017, the following are the assessments made to the corresponding program they supported:
INSTITUTION (a)R & B (b)VCF (c)PICI TOTAL NNCC 68,549 13,990 13,990 96,529 SCC 58,650 11,970 11,970 82,590 LCC 64,550 13,173 13,173 90,896 FMWCC 54,187 11,058 11,058 76,303 SDCC 23,453 4,786 4,786 33,025 WSCC 3,670 749 749 5,168 HDSP 46,947 9,581 9,581 66,109
Total $ 320,006 $ 65,307 $ 65,307 $ 450,620
Silver State Industries pays Workers’ Compensation premiums for all offenders working through Prison Industries unless a participating partner is self-insured. Applicable private companies are then billed by Silver State Industries for reimbursement.
24 56 NEVADA DEPARTMENT OF CORRECTIONS SILVER STATE INDUSTRIES Notes to Financial Statements for the Years Ended June 30, 2018 and 2017
14. Related Party Transactions
The buildings and facilities used by the various prison industries, except the Prison Ranch, are provided by the institution where they are located, including the majority of maintenance. Silver State Industries did not recognize any costs for these facilities other than utility consumption within these financial statements. Prison Industries reimburses each institution for their pro-rata share of utility consumption. The cost centers, within Silver State Industries, sell and purchase items to and from each other. Sales and purchases are stated at fair value within the applicable Statement of Operations and are eliminated on the Consolidated Statement of Operations. Elimination entries are reflected on the accompanying Schedule of Interfund Sales.
15. Accrued Warranties
At June 30, 2018, and 2017, Silver State Industries expensed warranty expense as it occurred. PI did not accrue any warranty expense for the years ending June 30, 2018 and 2017.
16. Bad Debt Expense
Bad debt expense represents sales recognized in prior fiscal years that are deemed uncollectible in the current year. The majority of the expenses are moneys due Silver State Industries from individuals or corporations that have filed bankruptcy or have gone out of business. Any amounts subsequently collected are treated as miscellaneous income by the central administration in the year collected. Any balances owed by individuals or businesses are forwarded to the State Controller for help in collection. Amounts written-off in the current year represent one uncollectible account.
Prison Industries did not have any uncollectable accounts this fiscal year. We believe that all accounts are collectable. The allowance for doubtful accounts balances at the beginning and the end of the fiscal year totaled $4,953
17. Utilities
In both 2018 and 2017, the cost of utilities has been allocated to private industries according to what the Nevada Department of Corrections charged Prison Industries.
25 57 58
VIII
STATUS OF AND PROPOSED EXPENDITURES FROM FUND FOR NEW CONSTRUCTION OF FACILITIES FOR PRISON INDUSTRIES – NRS 209.192
FUND FOR NEW CONSTRUCTION OF FACILITIES FOR PRISON INDUSTRIES Historical Revenues and Expenditures for FY 2014 through FY 2018
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Beginning Balance: $373,827 $467,938 $539,940 $303,821 $371,715
Revenue: Inmate Wage Assessments: $93,385 $70,282 $58,508 $65,161 $66,219 Interest Income: $726 $1,720 $2,490 $2,725 $5,687 Rebate: $7 Total Revenue: $94,111 $72,002 $60,999 $67,893 $71,906
Expenditures Incurred: $0 $0 $297,118 $0 $0
Ending Balance: $467,938 $539,940 $303,821 $371,715 $443,621
59 Silver State Industries Proposed Purchases from CIP Fund
Number of Total New or Additiona Dollar Existing l Proposed Equipment Shop Amount Description Program Offenders Skills Learned Calf health & care, range management, Feeder Steers would be raised for approximately six months before sold for a profit. facility maintenance, horsemanship, Feeder Steers SCC Ranch 75,000$ Goal is to increase their weight by 1.9 lbs. per day. New 2 equipment operation 4 to 5 during Currently using tents to house calves. A permanent structure would get the calves out of dismantli the wind. China Springs Youth Camp has a barn in Gardnerville that they would donate ng & to us. Funds would go towards dismantling the barn, transportation, site assessment and resurrecti General construction processes, Barn Relocation SCC Ranch 30,000$ preparation, and erecting the structure on Ranch property. Existing on equipment/tool operation Best practices for raising game birds, Raising game birds would need initial start‐up costs of birds and site development. Birds producing viable stock for sale while Game Birds SCC Ranch 7,500$ would be purchased at young age and would be sold to the public once matured. New 2 keeping death loss to a minimum LCC Two each bar tack machines used to reinforce stress points on all products manufactured Use and development of skills with an Bar tack Machines Garment 9,080$ by the Garment factory. Existing 2 industry standard sewing machine. LCC Use and development of skills with an Button Holler Garment 4,505$ Buttonholer would be utilized on pant and shirt line to expedite production. Existing 1 industry standard sewing machine. LCC Off arm machine used for pants, jumpsuits, boxers, and scrubs to assist with production Use and development of skills with an Off Arm Machine Garment 3,720$ increase. Existing 1 industry standard sewing machine. LCC Use and development of skills with an Off Arm Machine Garment 7,440$ Two each off arm machine to expand t‐shirt production line. Existing 2 industry standard sewing machine. LCC Use and development of skills with an Cutting Knife Garment 2,800$ Cutting knife will be utilized on private production lines to increase daily production. Existing 1 industry standard sewing machine. LCC Products require waistbanders to attach waistbands to boxers, jumpsuits, and other Use and development of skills with an Waistbander Garment 2,690$ clothing to assist with production increase. Existing 1 industry standard cutting machine. LCC Two each overlock machines surges together material using multiple lines to create Use and development of skills with an Ultra Overlock HS Garment 2,840$ durable seam. Will assist with t‐shirt production. Existing 2 industry standard sewing machine. LCC Two each cover stitch machine seams together layers of fabric with a double stitch in a Use and development of skills with an Cover stitch flat machine Garment 3,790$ crisscross pattern for maximum durability. Existing 2 industry standard sewing machine. LCC Two each top/bottom cover stitch machines would assist with keeping up with Use and development of skills with an Top/Bottom Cover stitch Garment 4,180$ production. Existing 2 industry standard sewing machine. LCC Used for the garment factory machines Task Station Chairs Garment $ 1,450 Ten each chairs for offender workers to accompany new machines. Existing 0 above LCC Used for the garment factory machines Sewing Stations Garment 5,620$ Ten each sewing stations for offender workers to accompany new machines. Existing 0 above SDCC Current plasma cutter is 10‐years‐old and past its useful life. It is needed for auto Plasma cutter skills pertaining to Plasma Cutter Auto 600$ restoration jobs. Existing 0 automotive body repair. Welding skills pertaining to automotive SDCC Current MIG welder is 10‐years‐old and past its useful life. It is needed for auto body repair. Possibly obtain welding MIG Welder Auto 2,935$ restoration jobs. Existing 0 certification. Welding skills pertaining to automotive SDCC Current TIG welder is 10‐years‐old and past its useful life. It is needed for auto body repair. Possibly obtain welding TIG Welder Auto 2,839$ restoration jobs. Existing 0 certification. Two computer workstations @ $500 each and one server @ $500. Current computers SDCC are approximately ten‐years‐old and well past their useful life. Computers are needed to Computer skills, generate quotes, help Computers Auto 1,500$ conduct day‐to‐day operations in the auto shop. Existing 0 track materials for jobs
NNCC Sewing machine head for Tape Edge machine which applies seam tape to connect border Sewing machine skills and procedure for Tape Edge Head Mattress 7,990$ and panel on a mattress would improve quality of mattress products. Existing 0 border and tape edging on mattresses. NNCC Current single needle sewing machine is approximately 20‐years‐old and beyond its Sewing machine skills and different types Sewing Machine Mattress 2,995$ useful life. Will assist with production of products. Existing 0 of sewing applications.
NNCC Applies mattress tape for box spring cover. Current machine is approximately 20‐years‐ Box Spring Binder Machine Mattress 16,044$ old and has outlived its useful life. Repairs are costly and result in loss of productivity. Existing 0 Different types of sewing applications.
Collects wood chips and saw dust from all machines being used in shops. Currently they Assists with keeping offenders healthy are forced to unattach and reattach fittings to different machines. Will assist with and reduces respiratory claims. This is a NNCC cleaning the air and reduces dust contamination. Will result in increased safety for all health issue. Could prevent respiratory Dust Collection System Furniture 1,204$ workers. Existing 0 medical claims in the future.
Assists with keeping offenders healthy and reduces respiratory claims. This is a NNCC Four each air filters for shops. This would assist with the elimination of dust problems. health issue. Could prevent respiratory Heavy Duty Filtration SystemFurniture 1,429$ Collects particles throughout the shop. Reduces health hazards. Existing 0 medical claims in the future. Steamer revives foam on old furniture and takes wrinkles out of materials. Current NNCC model has exceeded its life expectancy. Have large customer that requires steamer to Produce and manufacture better quality High Pressure Steamer Furniture 392$ work with their product. Existing 2 products. Dedicated Mortise machine allows for consistent and accurate mortising on all wood NNCC work. Currently use chisel. Will allow for more production of custom and existing Current technology and more precise Heavy Duty Mortise MachinFurniture 1,664$ products. Existing 1 manufacturing and production.
NNCC Table saw with safety integrated. Detects human contact and stops saw blade to prevent How to cut materials in a safer manner Saw Stop Cabinet Saw Furniture 4,790$ or reduce injury. Would reduce personal injury, provide safer wood cutting environment. Existing 1 and produce quality products. Allows for precision bends on sheet metal. The metal shop currently outsources any NNCC materials that require precision bends. Allows PI to manufacture more products and to Precision bends at different angles and Baileigh Box and Pan Brake Metal 9,987$ reduce costs from outsourcing. New 1 produce quality products. Used for preparation of structural wide flange beams to be full penetration welded. Will NNCC result in uniform product and will save considerable time. Will reduce labor cost and that Obtain AWS Full Penetration Welding Full Pen Prep Plate Metal 2,410$ time would allow us to produce more product. Existing 2 Certification.
NNCC Two at $4,450.38 each welders would replace worn out welders which are constantly Welding skills. May obtain an AWS MIG Welders Metal 8,901$ breaking down and require costly parts, resulting in a loss of production. Existing 1 Welding certification
60 Sandblaster unit used in preparation of products to be powder coated and painted. NNCC Current sandblaster has outlived its useful life and continues to need costly repairs. Prepare products to be powder coated or Pressure Abrasive Blaster Metal 725$ Increase production of product for preparation of powder coating and painting. Existing 1 painted.
Four each conveyors would allow larger beams to move safety in and out of horizontal NNCC saw would result in added safety for maneuvering large flange beams to be moved and Create safer environment and how to Roller Conveyors Metal 660$ prepared for precision cuts with our horizontal beam saw. Existing 1 make a more precise cut.
Compressor for sandblaster unit. Currently using compressor for other functions that have to be stopped when sandblasting. Needed in unison with pressure abrasive blaster NNCC and current compressors. Existing compressors are beyond capacity. Would allow to Prepare products to be powder coated Air Compressor Metal 4,550$ operate all functions that require air in auto shop, auto body paint, and upholstery shop. Existing 0 and painted.
Welding gun specific for use in aluminum welding. Current equipment produces dirty NNCC welds which require extensive labor to clean and make cosmetically pleasing. We have Work on specialty metal welding. May Welding Gun Metal 1,085$ been approached by customers to weld aluminum products. Existing 1 obtain an AWS welding certification. Total requests $ 233,315 29
61 Northern Administration Brian Sandoval 5500 Snyder Ave. Governor Carson City, NV 89701 (775) 887-3285 James Dzurenda Director Southern Administration 3955 W. Russell Rd. State of Nevada Las Vegas, NV 89118 (702) 486-9938 Department of Corrections
DATE: August 21, 2018
TO: Committee on Industrial Programs
FROM: James E. Dzurenda, Director
SUBJECT: Impact studies for Animal Breeders
The Prison Ranch would like to expand their operations to include raising feeder steers and game birds. The Ranch would like to purchase steers and fund start-up operations to raise game birds out of the Prison Industries capital improvement fund.
Per NRS 209.459 and 209.461, the Director of the Department of Corrections is required to obtain a detailed written analysis on the estimated impact of the new industry on private industry in Nevada. SSI has reached out to the Department of Employment, Training and Rehabilitation (DETR), the Governor’s Office of Economic Development, the Department of Business and Industry, and Representatives of organized labor in Nevada.
The written analysis must include, without limitation: 1. The number of private companies in this State currently providing the types of products and services offered in the proposed contract. 2. The number of residents of this State currently employed by such private companies. 3. The number of offenders that would be employed under the contract. 4. The skills that the offenders would acquire under the contract.
Attached are reports and e-mails from the Department of Employment, Training and Rehabilitation (DETR), the Governor’s Office of Economic Development (GOED), the Department of Business and Industry, and representatives of organized labor in this State.
DETR estimated that there are 1,800 animal breeders in the Carson City area. Those breeders earn a $20.98 per hour mean wage and $12.30 per hour 10th percentile wage. The Ranch is projecting that they would work two offenders with the feeder steer program and two offenders with the game bird program.
The Governor’s Office on Economic Development has provided the following information on Animal Breeders:
62 GOED determined that by adding four jobs in the Animal Production category would result in an initial effect of $124,378, a $15,678 direct effect, a $2,902 indirect effect, and a $16,049 induced effect. This would produce a $159,008 change in earnings with four initial jobs in the state. The effect on taxes on production and imports from adding the four jobs is $12,410 locally, $8,761 to the state, and $2,751 federally. Scenario results showed that four jobs would be created in the Agriculture, Forestry, Fishing and Hunting, two in Management occupations and two jobs in Farming, Fishing, and Forestry occupations.
The Department of Business and Industry does not perform Impact Studies and referred us to DETR. Organized labor does not have any objections with the Ranch operating a feeder steer program and a game bird program.
The offenders would learn about breeding, customer service, interpersonal skills, oral communication, diversity, a work ethic, responsibility, dependability, teamwork, strategic thinking, motivation, planning/organizing, professionalism, the importance of quality and quantity, safety and security, adaptability, initiative, etc.
These programs would provide valuable offender job training and would assist the Nevada Department of Corrections with room and board as deductions are taken out of the workers’ pay. Additionally, more contributions would be made to the Victims of Crime fund and Prison Industries’ Capital Improvement fund. PI’s financial position would also be enhanced.
Prison Industries strives to reduce government operating costs, provide offenders the skills necessary to successfully re-enter society, and enhance the safe operation of correctional facilities.
63 Parameters
Regions
Code Description
16180 Carson City, NV
Industry Scenario
Code Description Change Type Change Value
112000 Animal Production Jobs 4
Input-Output Year
2017
Changes to Animal Production $159,008 5 $24,922 Change in Taxes on Production Change in Earnings Change in Jobs and Imports (TPI) 1.28 Multiplier 1.21 Multiplier
Emsi Q3 2018 Data Set | www.economicmodeling.com 1 64 Effect on earnings from adding 4 jobs to Animal Production $124,378 $15,678 $2,902 $16,049 Initial Direct Indirect Induced 1.00 Multiplier 0.13 Multiplier 0.02 Multiplier 0.13 Multiplier
Effect on jobs from adding 4 jobs to Animal Production 4 0 0 0 Initial Direct Indirect Induced 1.00 Multiplier 0.10 Multiplier 0.02 Multiplier 0.09 Multiplier
Effect on taxes on production and imports from adding 4 jobs to Animal Production $12,410 $9,761 $2,751 Local State Federal
Emsi Q3 2018 Data Set | www.economicmodeling.com 2 65 Scenario Results - Industry
Change in NAICS Industry Jobs
Agriculture, Forestry, Fishing and 11 4 Hunting Mining, Quarrying, and Oil and Gas 21 0 Extraction 22 Utilities 0 23 Construction 0 31 Manufacturing 0 42 Wholesale Trade 0 44 Retail Trade 0 48 Transportation and Warehousing 0 51 Information 0 52 Finance and Insurance 0 53 Real Estate and Rental and Leasing 0 Professional, Scientific, and Technical 54 0 Services Management of Companies and 55 0 Enterprises Administrative and Support and 56 Waste Management and Remediation 0 Services 61 Educational Services 0 62 Health Care and Social Assistance 0 71 Arts, Entertainment, and Recreation 0 72 Accommodation and Food Services 0 Other Services (except Public 81 0 Administration) 90 Government 0
Emsi Q3 2018 Data Set | www.economicmodeling.com 3 66 Scenario Results - Occupation
Change in SOC Occupation Jobs
11-0000 Management Occupations 2 Business and Financial Operations 13-0000 0 Occupations 15-0000 Computer and Mathematical Occupations 0 17-0000 Architecture and Engineering Occupations 0 Life, Physical, and Social Science 19-0000 0 Occupations 21-0000 Community and Social Service Occupations 0 23-0000 Legal Occupations 0 25-0000 Education, Training, and Library Occupations 0 Arts, Design, Entertainment, Sports, and 27-0000 0 Media Occupations Healthcare Practitioners and Technical 29-0000 0 Occupations 31-0000 Healthcare Support Occupations 0 33-0000 Protective Service Occupations 0 Food Preparation and Serving Related 35-0000 0 Occupations Building and Grounds Cleaning and 37-0000 0 Maintenance Occupations 39-0000 Personal Care and Service Occupations 0 41-0000 Sales and Related Occupations 0 Office and Administrative Support 43-0000 0 Occupations 45-0000 Farming, Fishing, and Forestry Occupations 2 47-0000 Construction and Extraction Occupations 0 Installation, Maintenance, and Repair 49-0000 0 Occupations 51-0000 Production Occupations 0 Transportation and Material Moving 53-0000 0 Occupations 55-0000 Military-only occupations 0 99-0000 Unclassified Occupation 0
Emsi Q3 2018 Data Set | www.economicmodeling.com 4 67 Scenario Results - Demographics
Change in Demographics Jobs
Female 14-18 0 Male 14-18 0 Female 19-21 0 Male 19-21 0 Female 22-24 0 Male 22-24 0 Female 25-34 0 Male 25-34 1 Female 35-44 0 Male 35-44 1 Female 45-54 0 Male 45-54 1 Female 55-64 0 Male 55-64 1 Female 65-99 0 Male 65-99 1
Emsi Q3 2018 Data Set | www.economicmodeling.com 5 68 Data Sources and Calculations
Input-Output Data The input-output model in this report is Emsi's gravitational flows multi-regional social account matrix model (MR-SAM). It is based on data from the Census Bureau's Current Population Survey and American Community Survey; as well as the Bureau of Economic Analysis' National Income and Product Accounts, Input-Output Make and Use Tables, and Gross State Product data. In addition, several Emsi in-house data sets are used, as well as data from Oak Ridge National Labs on the cost of transportation between counties.
State Data Sources This report uses state data from the following agencies: Nevada Department of Employment, Training and Rehabilitation, Information Development and Processing Division, Research and Analysis Bureau
Emsi Q3 2018 Data Set | www.economicmodeling.com 6 69 70
Percentile Estimated Mean Annual 10th 25th 50th 75th 90th SOC Occupation Employment Wage Average
1) Ink2Work Indian Springs, Clark County Las Vegas MSA OES Wages, 2017 43-9061 Office Clerks, General 20,800 $16.94 $9.50 $11.94 $16.27 $21.23 $25.21 $35,230 Assemblers and Fabricators, All Other, 51-2098** Including Team Assemblers 2,880 $15.48 $9.81 $11.22 $13.93 $18.48 $24.93 $32,190
2) PI's Ranch Carson City, Carson City Carson City MSA OES Wages, 2017 45-2021*** Animal Breeders 1,800 $20.98 $12.30 $13.96 $18.06 $25.31 N/A $43,450
* Not Available for specified area: shown are state ** New 2018 SOC code *** Not Available for specified area or state: shown are National estimates N/A: Not available
Source Links: OES Wage and Employment Data http://nevadaworkforce.com/ OES Data comes from the Occupational Employment Statistics program of the https://data.bls.gov/oes/#/home
OES Description *The OES survey is a semi-annual mail survey of non-farm establishments. The BLS produces The survey materials and selects The establishments to be surveyed. *OES survey samples are drawn from the universe of non-farm employers covered by the State's Unemployment Insurance (UI) system. *Establishments to be surveyed are selected in order to obtain data from every metropolitan area and State, across all surveyed industries, and from establishments of varying sizes. *Employees' included are all part-time and full-time workers who are paid a wage or salary. The survey does not cover the self-employed, owners and partners in unincorporated firms, household workers, or unpaid family workers. 71 72
IX
INFORMATION ITEM: DISCUSSION OF STATUS OF APPROVED NEW PRISON INDUTRY PROGRAMS – NRS 209.4818
A. Nevada Organics, Inc. B. Erickson Framing Holdings, LLC. C. Sewing Collection, Inc.
Northern Administration Brian Sandoval 5500 Snyder Ave. Governor Carson City, NV 89701 (775) 887‐3285 James Dzurenda Director Southern Administration 3955 W. Russell Rd. State of Nevada Las Vegas, NV 89118 (702) 486‐9938 Department of Corrections
August 13, 2018
Re: Status update of new industries
Erickson Framing NV, LLC. Erickson Framing’s contract was approved by the BOE in April. The contract has now been fully executed. Erickson started with four offender workers the first week in June. They worked themselves up to eight by the end of June. They currently have ten workers. They have informed PI that they would like to add a second shift with another officer and with ten additional workers.
Nevada Organics Inc.
Nevada Organics’ contract was approved in March. It has been fully executed and compost work operating under Nevada Organics started in April. They currently have 12 offender workers. They are using the old Full Circle Compost site as they await approval for the new site from the Nevada Division of Environmental Protection. It may be another six months before Environmental Protection approves the new site.
Sewing Collection Inc. The Sewing Collection Inc. (SCI) informed us that they would like to move forward with a partnership and close down their Mexico operation once they get fully operational with Prison Industries. SCI is working to secure another hanger contract so make sure they have enough hangers for us. They were hesitant about a partnership with PI as they did not care for any of the options to guarantee payment; however, they have decided to go with a personal guarantee. The NDOC is in the process of revising the contract we originally prepared so we can proceed to the BOE for approval.
73 74
DISCUSSION OF AND RECOMMENDATIONS REGARDING POTENTIAL PRISON INDUSTRY PROGRAM NRS 209.4818 - Ink2Work, LLC.
X
Northern Administration Brian Sandoval 5500 Snyder Ave. Governor Carson City, NV 89701 (775) 887-3285 James Dzurenda Director Southern Administration 3955 W. Russell Rd. State of Nevada Las Vegas, NV 89118 (702) 486-9938 Department of Corrections
DATE: August 21, 2018
TO: Committee on Industrial Programs
FROM: James E. Dzurenda, Director
SUBJECT: Impact studies for Ink2Work
Silver State Industries (SSI) would like to partner with Ink2Work, LLC, using offender labor for their operations. Ink2Work is in the business of recycling larger printer cartridges for businesses. They currently operate out of Ventura, California; however, they would like to shut down that location. They also operate out of Belmarsh prison in London and Indian Creek Correctional Center in Virginia.
Per NRS 209.459 and 209.461, the Director of the Department of Corrections is required to obtain a detailed written analysis on the estimated impact of the contract on private industry in Nevada. SSI has reached out to the Department of Employment, Training and Rehabilitation (DETR), the Governor’s Office of Economic Development, the Department of Business and Industry, and Representatives of organized labor in Nevada.
The written analysis must include, without limitation: 1. The number of private companies in this State currently providing the types of products and services offered in the proposed contract. 2. The number of residents of this State currently employed by such private companies. 3. The number of offenders that would be employed under the contract. 4. The skills that the offenders would acquire under the contract.
Attached are reports and e-mails from the Department of Employment, Training and Rehabilitation (DETR), the Governor’s Office of Economic Development (GOED), the Department of Business and Industry, and representatives of organized labor in this State.
DETR has estimated that there are 20,800 office clerks in Clark County. Office clerks earn a mean wage of $16.94 per hour and a 10th percentile wage of $9.50 per hour. Ink2Work is projecting it would need one office clerk. Ink2Work is classifying the remainder of their workers as assemblers. DETR estimated that there are 2,880 assemblers and fabricators in Clark County. Assemblers and fabricators receive a mean wage of $16.48 per hour and a 10th percentile wage of $9.81 per hour. Ink2Work would like to start with 9 to 14 assemblers.
The Governor’s Office on Economic Development (GOED) classified Ink2Work ink cartridge recycling and rebuilding as computer and office machine repair and maintenance. Ten additional jobs in this 75 category would result in an initial $515,705 effect, a $72,027 direct effect, a $21,679 indirect effect, and a $226,862 induced effect. This would produce 17 additional jobs in the state, and would result in additional taxes on production and imports of $36,666 locally, $29,383 to the state, and $10,516 federal. Scenario results showed that one job each would be created in the following occupations: retail trade; real estate and rental and leasing; professional, scientific, and technical services; administrative and support and waste management and remediation services; health care and social assistance; accommodation and food services; management occupations; computer and mathematical occupations; food preparation and serving related occupations; transportation and material moving occupations. GOED is projecting two additional jobs with sales and related occupations and with office and administrative support occupations. Installation, maintenance, and repair occupations are projected to have an additional six jobs.
As you can see by the attached e-mail from the Deputy Director of the Department of Business and Industry, their agency does not perform Impact Studies and referred us to DETR. Additionally, organized labor does not have an issue with Ink2Work.
The offenders would learn assembling skills and about remanufacturing ink cartridges, customer service, interpersonal skills, oral communication, diversity, a work ethic, responsibility, dependability, teamwork, strategic thinking, motivation, planning/organizing, professionalism, the importance of quality and quantity, safety and security, adaptability, initiative, etc.
These programs would provide valuable offender job training and would assist the Nevada Department of Corrections with room and board as deductions are taken out of the workers’ pay. Additionally, more contributions would be made to the Victims of Crime fund and Prison Industries’ Capital Improvement fund. PI’s financial position would also be enhanced.
Prison Industries strives to reduce government operating costs, provide offenders the skills necessary to successfully re-enter society, and enhance the safe operation of correctional facilities.
76 Parameters
Regions
Code Description
32003 Clark County, NV
Industry Scenario
Code Description Change Type Change Value
Computer and Office Machine 811212 Jobs 10 Repair and Maintenance
Input-Output Year
2017
Changes to Computer and Office Machine Repair and Maintenance $836,273 17 $76,566 Change in Taxes on Production Change in Earnings Change in Jobs and Imports (TPI) 1.62 Multiplier 1.68 Multiplier
Emsi Q3 2018 Data Set | www.economicmodeling.com 1 77 Effect on earnings from adding 10 jobs to Computer and Office Machine Repair and Maintenance $515,705 $72,027 $21,679 $226,862 Initial Direct Indirect Induced 1.00 Multiplier 0.14 Multiplier 0.04 Multiplier 0.44 Multiplier
Effect on jobs from adding 10 jobs to Computer and Office Machine Repair and Maintenance 10 2 0 5 Initial Direct Indirect Induced 1.00 Multiplier 0.15 Multiplier 0.05 Multiplier 0.48 Multiplier
Effect on taxes on production and imports from adding 10 jobs to Computer and Office Machine Repair and Maintenance $36,666 $29,383 $10,516 Local State Federal
Emsi Q3 2018 Data Set | www.economicmodeling.com 2 78 Scenario Results - Industry
Change in NAICS Industry Jobs
Agriculture, Forestry, Fishing and 11 0 Hunting Mining, Quarrying, and Oil and Gas 21 0 Extraction 22 Utilities 0 23 Construction 0 31 Manufacturing 0 42 Wholesale Trade 0 44 Retail Trade 1 48 Transportation and Warehousing 0 51 Information 0 52 Finance and Insurance 0 53 Real Estate and Rental and Leasing 1 Professional, Scientific, and Technical 54 1 Services Management of Companies and 55 0 Enterprises Administrative and Support and 56 Waste Management and Remediation 1 Services 61 Educational Services 0 62 Health Care and Social Assistance 1 71 Arts, Entertainment, and Recreation 0 72 Accommodation and Food Services 1 Other Services (except Public 81 11 Administration) 90 Government 0
Emsi Q3 2018 Data Set | www.economicmodeling.com 3 79 Scenario Results - Occupation
Change in SOC Occupation Jobs
11-0000 Management Occupations 1 13-0000 Business and Financial Operations Occupations 0 15-0000 Computer and Mathematical Occupations 1 17-0000 Architecture and Engineering Occupations 0 19-0000 Life, Physical, and Social Science Occupations 0 21-0000 Community and Social Service Occupations 0 23-0000 Legal Occupations 0 25-0000 Education, Training, and Library Occupations 0 Arts, Design, Entertainment, Sports, and Media 27-0000 0 Occupations Healthcare Practitioners and Technical 29-0000 0 Occupations 31-0000 Healthcare Support Occupations 0 33-0000 Protective Service Occupations 0 Food Preparation and Serving Related 35-0000 1 Occupations Building and Grounds Cleaning and 37-0000 0 Maintenance Occupations 39-0000 Personal Care and Service Occupations 0 41-0000 Sales and Related Occupations 2 43-0000 Office and Administrative Support Occupations 2 45-0000 Farming, Fishing, and Forestry Occupations 0 47-0000 Construction and Extraction Occupations 0 Installation, Maintenance, and Repair 49-0000 6 Occupations 51-0000 Production Occupations 0 Transportation and Material Moving 53-0000 1 Occupations 55-0000 Military-only occupations 0 99-0000 Unclassified Occupation 0
Emsi Q3 2018 Data Set | www.economicmodeling.com 4 80 Scenario Results - Demographics
Change in Demographics Jobs
Female 14-18 0 Male 14-18 0 Female 19-21 0 Male 19-21 0 Female 22-24 0 Male 22-24 0 Female 25-34 1 Male 25-34 2 Female 35-44 1 Male 35-44 3 Female 45-54 1 Male 45-54 3 Female 55-64 1 Male 55-64 2 Female 65-99 0 Male 65-99 1
Emsi Q3 2018 Data Set | www.economicmodeling.com 5 81 Data Sources and Calculations
Input-Output Data The input-output model in this report is Emsi's gravitational flows multi-regional social account matrix model (MR-SAM). It is based on data from the Census Bureau's Current Population Survey and American Community Survey; as well as the Bureau of Economic Analysis' National Income and Product Accounts, Input-Output Make and Use Tables, and Gross State Product data. In addition, several Emsi in-house data sets are used, as well as data from Oak Ridge National Labs on the cost of transportation between counties.
State Data Sources This report uses state data from the following agencies: Nevada Department of Employment, Training and Rehabilitation, Information Development and Processing Division, Research and Analysis Bureau
Emsi Q3 2018 Data Set | www.economicmodeling.com 6 82 83 84