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County of Delaware, Pennsylvania

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County of Delaware, Pennsylvania County of Delaware, Pennsylvania Comprehensive Annual Financial Report Year Ended December 31, 2019 Prepared by Joanne Phillips, Esq. Controller County of Delaware, Pennsylvania Table of Contents December 31, 2019 Page Introductory Section Transmittal Letter 5 GFOA Certificate of Achievement 10 Organizational Chart 11 Principal County Officials 12 Financial Section Independent Auditors' Report 14 Management's Discussion and Analysis 16 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position 28 Statement of Activities 29 Fund Financial Statements: Balance Sheet - Governmental Funds 30 Reconciliation of the Balance Sheet Governmental Funds to the Statement of Net Position 31 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 32 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 33 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Comparison - General Fund 34 Statement of Net Position - Proprietary Funds 35 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 36 Statement of Cash Flows - Proprietary Funds 37 Statement of Fiduciary Net Position - Fiduciary Funds 38 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 39 Notes to Financial Statements 40 1 County of Delaware, Pennsylvania Table of Contents December 31, 2019 Page Required Supplementary Information Schedule of Changes in Net Other Post-Employment Benefit Liability and Related Ratios 84 Schedule of Changes in the County's Net Pension Liability (Asset) and Related Ratios 85 Schedule of Employer Contributions 86 Schedule of Investment Returns 87 Combining Statements and Schedules Governmental Fund Types: General Fund: Description of Fund 88 Schedule of Expenditures Compared to Budget 89 Health and Human Service Funds: Description of Sub-Funds 92 Combining Balance Sheet Schedule 93 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance 95 Nonmajor Governmental Funds: Description of Sub-Funds 98 Combining Balance Sheet 99 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 101 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Liquid Fuels Fund 103 Capital Projects Funds: Description of Sub-Funds 104 Combining Balance Sheet Schedule 105 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 106 2 County of Delaware, Pennsylvania Table of Contents December 31, 2019 Page Proprietary Fund Types: Internal Service Funds: Description of Sub-Funds 107 Combining Statement of Net Position 108 Combining Statement of Revenues, Expenses and Changes in Net Position 109 Combining Statement of Cash Flows 110 Component Units: Description of Component Units 111 Combining Statement of Net Position 112 Combining Statement of Activities 113 Capital Assets: Schedule of Changes in Capital Assets by Function 115 3 County of Delaware, Pennsylvania Table of Contents December 31, 2019 Statistical Section Table Page Financial Trends Net Position by Component - Government-Wide 1 118 Changes in Net Position - Government-Wide 2 119 Fund Balances - Governmental Funds 3 121 Changes in Fund Balances - Governmental Funds 4 122 Revenue Capacity Assessed Value and Estimated Actual Value of Taxable Property 5 123 Direct and Overlapping Real Estate Tax Rates 6 124 Principal Property Taxpayers 7 125 Property Tax Levies and Collections 8 126 Debt Capacity Ratio of Outstanding Debt by Type 9 127 Direct and Overlapping Governmental Activities Debt 10 128 Computation of Legal Debt Margin 11 130 Demographic and Economic Information Demographic and Economic Statistics 12 131 Principal Employers 13 132 Operating Information Full-Time Equivalent County Government Employees by Function/Program 14 133 Operating Indicators by Function/Program 15 134 Capital Asset Statistics by Function/Program 16 135 4 THIS PAGE INTENTIONALLY LEFT BLANK Introductory Section CONTROLLER OF DELAWARE COUNTY GOVERNMENT CENTER BUILDING 201 W. FRONT STREET MEDIA, PENNSYLVANIA 19063 PHONE 610-891-4441 Joanne Phillips, Esq. FAX NUMBER 610-566-3256 Robert W. Scott, Esq. CONTROLLER SOLICITOR Jeffrey J. Powers, C.P.A. FIRST DEPUTY CONTROLLER Rick Megaro, C.P.P. DEPUTY CONTROLLER June 29, 2020 To the Citizens of the County of Delaware, Pennsylvania: I am pleased to present the Comprehensive Annual Financial Report of the County of Delaware, Pennsylvania (the County) for the year ended December 31, 2019. This Comprehensive Annual Financial Report (CAFR) was prepared by the Controller's Office in conjunction with the independent certified public accounting firm of Baker Tilly Virchow Krause, LLP, whose opinion accompanies the basic financial statements contained in the Financial Section of this report. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rests with the County. We believe the data, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the County as measured by the financial activity of its funds; and that all disclosures necessary to enable the reader to gain an understanding of the County's financial affairs have been included. The Management's Discussion and Analysis (MD&A) immediately follows the Independent Auditors' Report and provides a narrative introduction, overview and analysis of the basic financial statements. MD&A complements this letter and should be read in conjunction with it. Our County, the oldest settled area of Pennsylvania, is a Home Rule Charter county that is governed by a council of five members who are elected to staggered four-year terms. In 2019, three members of Council completed their terms on County Council. County Council is responsible for all legislative and administrative functions of County government. Although County Council has overall responsibility for all actions of County departments, the Executive Director, who is appointed by County Council, is directly responsible for the operations of certain departments as outlined in the Home Rule Charter and County Administrative Code. The primary administrative level staff assistance is provided to County Council by the Executive Director and the County Clerk. Legal guidance and representation of the County is provided by the County Solicitor. The powers and duties of County Council are many. The Home Rule Charter provides County Council with the authority to pass ordinances, resolutions, emergency orders, and proclamations and the responsibility to provide budgets and personnel to meet the needs of the people of Delaware County. County Council is responsible for adopting a budget each year. The budget includes setting taxes and fees sufficient to raise funds needed for budgeted expenditures. To raise funds for major capital projects, County Council also authorizes the sale of bonds and notes. In addition, many of the County's administered social services programs are funded by federal and state grants. 5 This report includes all funds of the County. County Council decides the best means of providing services contemplated by the Home Rule Charter. The County provides a variety of services to the citizens of the County, including social service programs, economic development, administration of justice, funding for the operation and maintenance of the County's correctional institution, operation of a County long-term care nursing home, the administration of elections, recreational opportunities and general governmental services. In addition to general County activities, County Council has fiscal accountability for the Delaware County Solid Waste Authority, the Economic Development Oversight Board, the Delaware County Redevelopment Authority and the Delaware County Chester Waterfront Industrial Development Authority. Consequently, these component units are included in the County’s financial report. County Council also has responsibility to appoint members to boards of a number of authorities and advisory boards, but the County's accountability for these entities does not extend beyond the appointments and these authorities are not included in the report. Further, in response to the Right to Know law in the Commonwealth of Pennsylvania, the County maintains an Open Records Office. This office, with the assistance of the County’s departments, is responsible for ensuring the County's compliance with the law and facilitating access to government documents. In 2019 the County's Open Records Office responded to 401 requests. Controller's Office and Internal Controls The Controller is the elected financial officer of the County and as such is independent of the executive and legislative branches of County government. The current Controller is a licensed attorney in the Commonwealth of Pennsylvania and worked cooperatively with the independent auditors when they performed this annual audit. In addition, the County Controller's Office is required to serve in the capacity of internal auditor for the County. During the year, the Controller's Office staff, together with the services of independent certified public accountants, worked to maintain the integrity of the County system of internal accounting controls and conducted internal control reviews on departments and offices. Management of the County is responsible for establishing and maintaining
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