SALT LAKE COUNTY, UTAH COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED DECEMBER 31, 2019 Prepared by: Salt Lake County Mayor’s Financial Administration Published: June 24, 2020 SALT LAKE COUNTY Comprehensive Annual Financial Report—Table of Contents Year Ended December 31, 2019 Page INTRODUCTORY SECTION Table of Contents.............................................................................................................................................................................. 1 Transmittal Letter.............................................................................................................................................................................. 5 Certificate of Achievement for Excellence in Financial Reporting.................................................................................................. 11 Organizational Chart......................................................................................................................................................................... 12 FINANCIAL SECTION Independent Auditor’s Report........................................................................................................................................................... 16 Management’s Discussion and Analysis (MD&A)........................................................................................................................... 20 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position............................................................................................................................................................... 36 Statement of Activities................................................................................................................................................................... 37 Governmental Fund Financial Statements: Balance Sheet................................................................................................................................................................................. 38 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position................................................... 39 Statement of Revenues, Expenditures, and Changes in Fund Balances......................................................................................... 40 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities............................................................................................................................................ 41 Statements of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual—Budgetary Basis: General Fund................................................................................................................................................................................ 42 Grant Programs Special Revenue Fund....................................................................................................................................... 43 Transportation Preservation Special Revenue Fund.................................................................................................................... 44 Tourism, Recreation, Cultural, and Convention (TRCC) Special Revenue Fund....................................................................... 45 Proprietary Fund Financial Statements: Statement of Net Position............................................................................................................................................................... 46 Statement of Revenues, Expenses, and Changes in Net Position.................................................................................................. 47 Statement of Cash Flows................................................................................................................................................................ 48 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position.............................................................................................................................................. 49 Statement of Changes in Fiduciary Net Position........................................................................................................................... 50 Notes to the Basic Financial Statements: Note 1-Summary of Significant Accounting Policies.................................................................................................................... 51 Note 2-Fair Value Measurements.................................................................................................................................................. 59 Note 3-Deposits and Investments................................................................................................................................................... 59 Note 4-Property and Other Taxes................................................................................................................................................... 62 1 SALT LAKE COUNTY Comprehensive Annual Financial Report—Table of Contents Year Ended December 31, 2019 Page Note 5-Receivables........................................................................................................................................................................ 63 Note 6-Accounts Payable and Accrued Expenses.......................................................................................................................... 65 Note 7-Interfund Receivables and Payables................................................................................................................................... 65 Note 8-Capital Assets..................................................................................................................................................................... 66 Note 9-Long-Term Liabilities........................................................................................................................................................ 68 Note 10-State Retirement Plans..................................................................................................................................................... 75 Note 11-Other Postemployment Benefits...................................................................................................................................... 80 Note 12-Risk Management............................................................................................................................................................. 83 Note 13-Construction and Other Significant Commitments.......................................................................................................... 83 Note 14-Joint Ventures and Undivided Interests........................................................................................................................... 85 Note 15-Budgetary to GAAP Reporting Reconciliation................................................................................................................ 89 Note 16-Interfund Transfers........................................................................................................................................................... 90 Note 17-Conduit Debt.................................................................................................................................................................... 90 Note 18-Related Party Transactions............................................................................................................................................... 91 Note 19-Endowments..................................................................................................................................................................... 91 Note 20-Subsequent Events........................................................................................................................................................... 91 Required Supplementary Information: Information about Infrastructure Assets Reported Using the Modified Approach........................................................................... 94 Schedules of the County’s Proportionate Share of the Net Pension Liability (Asset)—Utah Retirement Systems........................ 96 Schedules of County Contributions—Utah Retirement Systems..................................................................................................... 98 Schedules of Changes in the County’s Net OPEB Liability and Related Ratios—Other Postemployment Benefit Plan............... 100 Schedules of County Contributions—Other Postemployment Benefit Plan.................................................................................... 101 Schedules of County Investment Returns—Other Postemployment Benefit Plan........................................................................... 101 Notes to the Required Supplementary Information........................................................................................................................... 102 Supplementary Information—Combining Statements and Individual Fund Statements and Other Schedules: Major Governmental Funds: Schedules of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual—Budgetary Basis: General Fund............................................................................................................................................................................