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Cameron County FY 2018 CAFR

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Cameron County FY 2018 CAFR CAMERON COUNTY, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018 MARTHA GALARZA, CPA COUNTY AUDITOR CAMERON COUNTY, TEXAS Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2018 TABLE OF CONTENTS PAGE INTRODUCTORY SECTION Letter of Transmittal 1 GFOA Certificate of Achievement 20 Organization Chart 21 Elected Officials 22 FINANCIAL SECTION 23 Independent Auditors’ Report 25 Management’s Discussion and Analysis 29 Basic Financial Statements: 43 Government-wide Financial Statements: Statement of Net Position 44 Statement of Activities 46 Fund Financial Statements: Balance Sheet – Governmental Funds 47 Reconciliation of Balance Sheet of Governmental Funds to the Statement of Net Position 48 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds 49 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 50 Statement of Net Position – Proprietary Funds 51 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds 53 Statement of Cash Flows – Proprietary Funds 54 Statement of Fiduciary Net Position – Fiduciary Funds 55 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 56 Notes to the Basic Financial Statements 57 Required Supplementary Information: 115 Schedule of Changes in Net Pension Liability and Related Ratios 116 Schedule of Employer Contributions 117 Schedule of Changes in Total OPEB Liability and Related Ratios – Med Claims 118 Schedule of Employer Contributions –Med Claims 119 Schedule of Changes in Total OPEB Liability and Related Ratios – GTL 120 Schedule of Employer Contributions –GTL 121 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund 122 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – Special Road and Bridge Fund 123 Notes to Required Supplementary Information 124 Supplementary Information: 125 Combining and Individual Funds Statements and Schedules: Combining Balance Sheet – Non-major Governmental Funds 126 iii CAMERON COUNTY, TEXAS Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2018 TABLE OF CONTENTS PAGE Supplementary Information (Continued): Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Non-major Governmental Funds 134 Major Governmental Funds 142 Schedule of Revenues, Expenditures and Changes in Fund Balance General Fund 143 Road and Bridge Fund 151 Schedules of Revenues, Expenditures and Changes in Fund Balances Budget to Actual Non-major Special Revenue Funds 153 Non-major Capital Project Funds 194 Non-major Debt Service Fund 202 Non-Major Enterprise Funds 205 Combining Statement of Net Position – Non-major Enterprise Funds 206 Combining Statement of Revenues, Expenses and Changes in Net Position- Non-major Enterprise Funds 207 Combining Statement of Cash Flows – Non-major Enterprise Funds 208 Trust and Agency Funds 209 Combining Statement of Fiduciary Net Position – Private Purpose Trust Funds 211 Combining Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds 212 Combining Statement of Fiduciary Assets and Liabilities – Agency Funds 213 Combining Statement of Changes in Fiduciary Assets and Liabilities – Agency Funds 216 Capital Assets Used in the Operation of Governmental Funds: 222 Comparative Schedule by Source 223 Schedule of Changes in Capital Assets by Function and Activity 224 Schedule of Changes in Capital Assets by Function 225 Component Units 226 Combining Statements of Net Position-Governmental Funds-Component Units 227 Statement of Activities-Component Units 228 Balance Sheet-Component Units 229 Combining Statement of Revenues, Expenditures and Changes in Net Position:-Governmental Funds- Component Units 230 STATISTICAL SECTION: 231 Governmental-Wide information: Net position by Component-For the Last Ten Fiscal Years 232 Governmental-Wide Revenues-For the Last Ten Fiscal Years 233 Governmental-Wide Expenses by Function-For the Last Ten Fiscal Years 233 Fund Information: General Governmental Revenues by Source - Last Ten Fiscal Years 233 General Governmental Expenditures by Function - Last Ten Fiscal Years 233 Fund Balances, Governmental Funds-Last Ten Fiscal Years 234 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 236 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years 236 Property Tax Levies and Collections - Last Ten Fiscal Years 237 Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years 238 iv CAMERON COUNTY, TEXAS Comprehensive Annual Financial Report For the Fiscal Year Ended September 30, 2018 TABLE OF CONTENTS PAGE STATISTICAL SECTION (Continued): Computation of Direct and Estimated Overlapping Debt 239 Ten Principal Taxpayers - Fiscal Year 2018 239 Ten Principal Employers – Fiscal Year 2018 239 Computation of Legal Debt Margin 240 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years 240 Ratio of Outstanding Debt by Type – Last Ten Fiscal Years 241 Ratio of General Bonded Debt Outstanding-Last Ten Fiscal Years 241 Revenue Bond Coverage - Park System and International Toll Bridge System – Last Ten Fiscal Years 242 Demographic Statistics - Last Ten Fiscal Years 243 Construction, Bank Deposits and Property Value - Last Ten Fiscal Years 243 Full-time Equivalent County Government Employees by Function 244 Operating indicators 245 SINGLE AUDIT: 246 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 247 Independent Auditors’ Report on Compliance for each Major Program and on Internal Control over Compliance required by the Uniform Guidance and the State of Texas Single Audit Circular 249 Schedule of Expenditures of Federal Awards 251 Schedule of Expenditures of State Awards 254 Notes to Schedule of Expenditures of Federal / State Awards 257 Schedule of Findings and Questioned Costs 258 v COUNTY AUDITOR CAMERON COUNTY, TEXAS P.O. Box 3846 Brownsville, Texas 78523 (956) 544-0822 Martha Galarza COUNTY AUDITOR March 28, 2019 Honorable District Judges of Cameron County and Honorable Members of the Cameron County Commissioners’ Court The County Auditor’s Office (the “Auditor’s Office”) is pleased to present the Comprehensive Annual Financial Report (“CAFR”) of Cameron County, Texas (the “County”) for the fiscal year ended September 30, 2018. This report is submitted in accordance with Section 114.025 of the Texas Local Government Code and has been prepared by the County Auditor’s staff. Responsibility for the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with the County. We believe the data presented is accurate in all material respects and presents fairly the financial position and results of operations of the County in accordance with generally accepted accounting principles (“GAAP”). All disclosures necessary to enable the reader to gain an understanding of the County’s financial activities have been included. The County is required to provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a MD&A. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent auditors’ report. The accounting and reporting policies of the County reflected in the accompanying financial statements conform to accounting principles generally acceptable in the United States of America applicable to state and local governments. Accounting principles generally accepted in the United States of America for local governments are those promulgated by the Governmental Accounting Standards Board (GASB) in Governmental Accounting and Financial Reporting Standards. The financial report has been prepared in accordance with GASB Statement No. 34, “Basic Financial Statements – and Management‘s Discussion and Analysis – for State and Local Governments”, issued in June 1999 and implemented by the County in FY2003. The effect of implementing all of the above-mentioned accounting standards are discussed in Note 1 to the basic financial statements. THE REPORTING ENTITY AND IT SERVICES The combined financial statements of Cameron County, Texas as a financial reporting entity report all activities, organizations, and functions of Cameron County, both as a primary government and its legally separate component units for which (1) the elected officials of the County are financially accountable and/or (2) exclusion of component units activities would cause the County’s financial statements to be misleading or incomplete. The County’s component units have been reported as blended with the County as the primary government or discrete (separate) component unit, as appropriate. Criteria used by the County for including activities in preparing these financial statements are in conformity with Governmental Accounting Standards Board Statement No. 14 - The Financial Reporting Entity, as amended by GASB 61- The Financial Reporting Entity: Omnibus. Based on the foregoing criteria, the operations of the following component units have been included in this year’s report: Cameron County Regional Mobility Authority
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