2019 COUNTY OF ALLEGHENY PENNSYLVANIA Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 PREPARED BY CHELSA WAGNER, CONTROLLER 2019 County of Allegheny Comprehensive Annual Financial Report Contents INTRODUCTORY SECTION Controller's Letter of Transmittal ............................................................................................................ 1 GFOA Certificate of Achievement ......................................................................................................... 17 Organizational Chart .............................................................................................................................. 19 Officials of Allegheny County ............................................................................................................... 21 FINANCIAL SECTION Independent Auditor's Report ............................................................................................................... 23 Management's Discussion and Analysis ............................................................................................. 29 Basic Financial Statements ................................................................................................................... 51 Government-wide Financial Statements ............................................................................... 53 Statement of Net Position ....................................................................................... 53 Statement of Activities ........................................................................................... 56 Governmental Fund Financial Statements ............................................................................ 58 Balance Sheet ........................................................................................................ 58 Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Position ................................................................................................................. 63 Statement of Revenues, Expenditures and Changes in Fund Balances ....................... 64 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities................................. 68 Proprietary Fund Financial Statements ................................................................................. 69 Statement of Net Position ....................................................................................... 69 Statement of Revenues, Expenses and Changes in Net Position ................................ 70 Statement of Cash Flows ........................................................................................ 71 Fiduciary Fund Financial Statements .................................................................................... 72 Statement of Fiduciary Net Position ......................................................................... 72 Statement of Changes in Fiduciary Net Position ....................................................... 74 Component Unit Financial Statements ................................................................................. 76 Statement of Net Position ....................................................................................... 76 Statement of Activities ........................................................................................... 82 2019 County of Allegheny Comprehensive Annual Financial Report Contents Notes to Financial Statements ............................................................................................. 85 (1) Summary of Significant Accounting Policies ...................................................... 85 (2) Legal Compliance ......................................................................................... 119 (3) Cash and Investments .................................................................................. 120 (4) Property and Sales Tax Revenue and Receivables ........................................... 135 (5) Capital Assets ............................................................................................... 139 (6) Risk Management ......................................................................................... 145 (7) Short-Term Debt .......................................................................................... 148 (8) Long-Term Debt ........................................................................................... 149 (9) Interfund Receivables, Payables and Transfers ............................................... 164 (10) Retirement Benefits ...................................................................................... 165 (11) Postemployment Benefits Other Than Pension Benefits ................................... 186 (12) Contingencies ............................................................................................... 199 (13) Related Party Transactions (see Note 1) ......................................................... 202 (14) Derivative Financial Instruments .................................................................... 204 (15) Tax Abatements ........................................................................................... 206 (16) Subsequent Events ....................................................................................... 208 Required Supplementary Information ................................................................................................ 209 Budgetary Comparison Schedule - General Fund ................................................................ 211 Notes to Required Supplementary Information ................................................................... 212 Schedule of Changes in the County's Net Pension Liability and Related Ratios...................... 213 Schedule of County Contributions...................................................................................... 214 Schedule of Changes in PAT's Net Pension Liability and Related Ratios – ATU ...................... 217 Schedule of Changes in PAT's Net Pension Liability and Related Ratios – IBEW .................... 218 Schedule of Changes in PAT's Net Pension Liability and Related Ratios – NonRep ................ 219 Schedule of PAT Contributions .......................................................................................... 220 Schedule of Changes in CCAC's Net Pension Liability and Related Ratios .............................. 222 Schedule of Changes in the County’s Total OPEB Liability and Related Ratios ....................... 223 Schedule of Changes in ACAA's OPEB Liability and Related Ratios ....................................... 224 Schedule of Changes in CCAC's OPEB Liability and Related Ratios ....................................... 225 Schedule of Changes in PAT's OPEB Liability and Related Ratios – ATU ............................... 226 Schedule of Changes in PAT's OPEB Liability and Related Ratios – IBEW ............................. 227 2019 County of Allegheny Comprehensive Annual Financial Report Contents Schedule of Changes in PAT's OPEB Liability and Related Ratios – NonRep .......................... 228 Supplementary Information ................................................................................................................. 229 Combining Other Governmental Funds Financial Statements: .............................................. 231 Combining Balance Sheet - Other Governmental Funds .......................................... 233 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Other Governmental Funds ................................................................................. 234 General Fund: .................................................................................................................. 235 A-1 Balance Sheet ................................................................................................ 237 A-2 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ........................................................................................................... 239 A-3 Schedule of Operating Expenditures - Budget and Actual ................................. 242 Special Revenue Funds: ................................................................................................... 261 B-1 Balance Sheet Schedule ................................................................................. 263 B-2 Schedule of Revenues, Expenditures and Changes in Fund Balances ................. 265 B-3 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Transportation Fund .......................................................................... 266 B-4 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Liquid Fuel Tax Fund ......................................................................... 267 B-5 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Infrastructure Support Fund ............................................................... 268 B-6 Schedule of Resources and Uses of Federal and State Grant Programs - County Grants Fund ............................................................................................. 269 B-7 Schedule of Resources and Uses of Federal and State Grant Programs - Human Service Grants Fund ................................................................................