HARRIS COUNTY, TEXAS MONTHLY FINANCIAL REPORT (Unaudited and Unadjusted) November 2018 MICHAEL POST, CPA, MBA HARRIS COUNTY AUDITOR HARRIS COUNTY, TEXAS MONTHLY FINANCIAL REPORT (UNAUDITED AND UNADJUSTED) November 30, 2018 TABLE OF CONTENTS PAGE DESCRIPTION NUMBER County Auditor's Letter of Transmittal Executive Summary o Highlights of Harris County's Financial Statements i-iii o Cash and Investment Balances (General Fund 1000 and All Funds) Three Year Comparison iv o General Fund 1000 - First Year Comparison of Expenditures by Function v o General Fund 1000 - Salaries and Benefits by Function vi o General Fund Projected Cash Flow vii Fund Financial Statements: o Balance Sheet - Governmental Funds 1 o Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 2 o Statement of Net Position - Proprietary Funds 3 o Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 4 o Statement of Fiduciary Net Assets - Fiduciary Funds 5 Combining and Individual Fund Information: o Combining Balance Sheet - Nonmajor Governmental Funds - Summary 7 o Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds - Summary 8 o Combining Balance Sheet - Nonmajor Governmental Funds - Special Revenue 10-17 o Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds - Special Revenue 18-25 o Combining Balance Sheet - Nonmajor Governmental Funds - Debt Service 26 o Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds - Debt Service 27 o Combining Balance Sheet - Nonmajor Governmental Funds - Capital Projects 28 o Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds - Capital Projects 29 o Combining Statement of Net Position - Nonmajor Enterprise Funds 30 o Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Enterprise Funds 31 o Combining Statement of Net Position - Internal Service Funds 32 o Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 33 o Combining Statement of Fiduciary Assets and Liabilities - Agency Funds 34-36 Other Supplementary Information: o Schedule of Capital Assets 37 o Schedule of Transfers 38 HARRIS COUNTY, TEXAS MONTHLY FINANCIAL REPORT (UNAUDITED AND UNADJUSTED) November 30, 2018 TABLE OF CONTENTS PAGE DESCRIPTION NUMBER o Schedule of Debt - Commercial Paper and Bonded Debt - All Funds 39 o Schedule of Debt Requirements - Bonded Debt 40 o Monthly Interest Rate Swap Position 41 o Accounts and Notes Receivable Schedules 42-45 o Statement of Cash Receipts and Disbursements 46-51 Budget Status: o Revenue and Other Financing Sources Status - By Fund 53-55 o Summary Expenditures and Transfers Out Budget Status - By Fund 56-61 o General Governmental Fund Expenditures and Transfers Out Budget Status - By 62-64 Department o Capital Projects GL Balances 65-77 Gary Gray, C.P.A. 1001 Preston, Suite 800 First Assistant County Auditor Houston, Texas 77002-1817 (832) 927-4600 Leslie Wilks Garcia, C.P.A., C.F.E. FAX (713) 755-8932 Chief Assistant County Auditor Help Line (832) 927-4558 Audit Division MICHAEL POST, C.P.A., M.B.A. HARRIS COUNTY AUDITOR January 8, 2019 Honorable District Judges of Harris County and Honorable Members of the Harris County Commissioners Court: The unaudited and unadjusted Monthly Financial Report of Harris County, Texas as of and for the month ending November 30, 2018 is submitted herewith in accordance with Section 114.023 of the Texas Local Government Code and was prepared by the County Auditor’s Office staff. The statements are reported on a budgetary basis which is not in accordance with generally accepted accounting principles. Due to the statutory duties of the County Auditor, I am not independent with regard to these financial reports as defined by the professional standards of the American Institute of Certified Public Accountants. However, these financial statements were prepared and the financial accounting records were maintained with objectivity and due professional care. The Monthly Financial Report is presented in five sections: Executive Summary, Fund Financial Statements, Combining and Individual Fund Information, Other Supplementary Information, and Budget Status. The Executive Summary section contains charts depicting multi-year trends of selected financial information and indicators. The Financial Statement section contains the Governmental Funds Balance Sheet, the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances, the Proprietary Funds Statement of Net Assets, the Proprietary Funds Statement of Revenues, Expenses and Changes in Net Assets, and the Fiduciary Funds Statement of Net Assets. The Combining and Individual Fund Information section contains individual fund statements for Special Revenue Funds, Debt Service Funds, Capital Projects Funds, Non-major Enterprise Funds, Internal Service Funds, and Agency Funds. The Other Supplementary Information Section contains information on debt, operating transfers, notes receivable, accounts receivable, and receipts and disbursements. The Budget Status section contains comparisons of actual revenue and other financing sources with estimated revenue and other financing sources by fund; actual expenditures and transfers out with appropriations and transfers out by fund; capital project expenditures by department; and General Fund expenditures and transfers out and appropriations by department. Should you have any questions concerning this report, please do not hesitate to contact the County Auditor’s Office at (832) 927-4600. Sincerely, Michael Post, C.P.A., M.B.A. County Auditor EXECUTIVE SUMMARY Highlights of Harris County’s Financial Statements Fiscal Month 9 of 12 November 30, 2018 Unaudited Interim Monthly Financial Reports The monthly financial statements are prepared on a budgetary basis, which is not in accordance with Generally Accepted Accounting Principles (GAAP). However, these financial statements and accounting records are prepared and maintained with objectivity and due professional care. General Fund (1000) Revenues and Expenditures The County’s major sources of revenue are taxes and charges for services. Property Tax revenues for the General Fund account for approximately 80% of total revenues each fiscal year. There was a $23.1M increase in Tax revenue as compared to this time last year. Higher taxable values and new construction are the two factors driving this growth. On October 9, 2018, Commissioners Court adopted the total Harris County Maintenance and Operations tax rate of $0.34500 for Tax Year 2018 (FY 2019). This rate applies to the General Operating Fund and the Public Improvement Contingency Fund. Total Revenues and Transfers In are $39.2M greater than the prior year. Intergovernmental revenue increased by $3.9M, primarily as a result of additional mixed beverage tax funds of $1.5M and indigent defense funds of $1.7M. The $10.9M increase in Charges for Services can largely be attributed to increases in the following categories: $3.9M in patrol service fees, $1.2M in auto registration fees, $1.7M in fees of office, $1.2M in automobile commissions, and $1.2M in Motor Vehicle Sales Taxes (MVST) compared to the prior year. In addition, Miscellaneous revenue increased $2.6M compared to the prior year primarily due to $2.4M received from the Flood Control District as part of a service agreement with CTS. Overall Expenditures and Transfers Out increased by $139.6M over last year. This is attributable to several factors including increases in Salaries and Benefits, Services and Other, Utilities, and Travel & Transportation spending. Most of the Salaries growth occurred in law enforcement, Central Technology Services Department, County Attorney’s Office, Constable Precinct 4, County Clerk and District Attorney's Office. Salaries were also higher because there were three pay periods in November compared to two last November. However, spending decreases in Materials and Supplies, Miscellaneous and Capital Outlay provided offsets that held the overall increases in this category to the $139.6M mentioned above. i Highlights of Harris County’s Financial Statements Fiscal Month 9 of 12 November 30, 2018 The following chart summarizes the comparison of revenues and expenditures between current fiscal year-to-date and prior fiscal year-to-date on a cash basis. General Fund (1000) Comparison of Current Year to Prior Year Revenues and Expenditures (Excluding Encumbrances) Cash Basis 2019 Current to Fis cal Prior Prior Year Year-to-Date Year-to-Date Increase Percentage General Fund 1000 Actual Actual (Decrease) Change Revenues and Transfers In Taxes $ 105,168,764 $ 82,033,559 $ 23,135,205 28.20% Intergovernmental 38,963,509 35,107,796 3,855,713 10.98% Charges for Services 194,553,637 183,611,452 10,942,185 5.96% Fines and Forfeitures 13,442,871 13,821,509 (378,638) -2.74% Rentals & Parks 1,016,172 778,323 237,849 30.56% Interest 9,008,213 4,151,716 4,856,497 116.98% Miscellaneous 34,969,401 32,376,561 2,592,840 8.01% Transfers In 5,107,599 11,195,220 (6,087,621) -54.38% Total Revenues and Transfers In $ 402,230,166 $ 363,076,136 $ 39,154,030 10.78% Expenditures and Transfers Out Salaries (including benefits) $ 953,317,995 $ 882,747,560 $ 70,570,435 7.99% Materials and Supplies 36,668,939 37,485,775 (816,836) -2.18% Services and Other 190,119,933 168,667,234 21,452,699 12.72% Utilities 24,866,372 23,061,629 1,804,743 7.83% Travel and Transportation 15,662,468 13,618,191 2,044,277 15.01% Miscellaneous 52,679,227 56,521,558 (3,842,331) -6.80% Capital Outlay 21,864,884 33,210,290 (11,345,406) -34.16% Transfers Out 79,362,502 19,608,830 59,753,672 304.73% Total Expenditures and Transfers Out $ 1,374,542,320 $ 1,234,921,067 $ 139,621,253 11.31% Revenues and Transfers In minus Expenditures and Transfers Out $ (972,312,154) $ (871,844,931) $ (100,467,223) -11.52% General Fund (1000) Budget The FY 2019 budget for the General Fund was adopted on February 13, 2018.