HUMBOLDT COUNTY JUNE 30, 2018

Transcription

1 JUNE 30, 2018

2 June 30, 2018 TABLE OF CONTENTS FINANCIAL SECTION Independent Auditor s Report Management s Discussion and Analysis (required supplementary information) Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position Statement of Activities Page --- Fund Financial Statements: Governmental Funds: Balance Sheet Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position...18 Statement of Revenues, Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities...21 Proprietary Funds: Statement of Net Position...22 Statement of Revenues, Expenses, and Changes in Net Position...23 Statement of Cash Flows...24 Fiduciary Funds: Statement of Fiduciary Net Position...25 Statement of Changes in Fiduciary Net Position...26 Notes to the Financial Statements Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balances -- Budget and Actual: General Fund (Budgetary Basis) Major Special Revenue Funds: Indigent Fund...64 Road Fund Regional Transportation Fund th Judicial District Fund Indigent Medical Fund...70 Winnemucca Events Complex Fund...71 In-Lieu-of Tax Fund...72 Reconciliation of the General Fund (Budgetary Basis) to the General Fund (GAAP Basis)...73 Schedule of Changes in Total OPEB Liability and Related Ratios...74 Schedule of the County s Proportionate Share of the Net Pension Liability...75 Schedule of the County s Contributions...76 Notes to Required Supplementary Information...77

3 June 30, 2018 TABLE OF CONTENTS Page --- Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Combining Balance Sheet...78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances...79 Governmental Funds: Reconciliation of the General Fund (Budgetary Basis) to the General Fund (GAAP Basis) - Balance Sheet...80 Schedules of Revenues, Expenditures and Changes in Fund Balances Budget and Actual: General Fund (Budgetary Basis) Special Revenue Funds: Nonmajor Special Revenue Funds: Combining Balance Sheet Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Schedules of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual: Cooperative Extension Fund...95 Library Fund th Judicial District Drug Court Fund...97 Administrative Assessment Fund...98 Stabilization Fund...99 Check Restitution Fund Genetic Marker Testing Fund Assessor s Technology Fund Enhancement Fund Justice Court Administrative Assessment Fund Humboldt Fire District General Fund Library Memorial Fund Internally Reported (Budgetary Basis) Funds Reported as Part of the General Fund for External Reporting Purposes: Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balance Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Unemployment Insurance Fund Compensated Absence Fund...110

4 June 30, 2018 TABLE OF CONTENTS --- Page Capital Project Funds: Major Capital Project Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual: Building Reserve Fund Nonmajor Capital Project Fund: Balance Sheet Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual: Capital Projects Fund Enterprise Funds: Major Enterprise Funds: Humboldt Television Fund: Schedule of Revenues, Expenses, and Changes in Net Position Budget and Actual Schedule of Cash Flows Solid Waste Management Fund: Schedule of Revenues, Expenses, and Changes in Net Position Budget and Actual Schedule of Cash Flows McDermitt Sewer District Fund: Schedule of Revenues, Expenses, and Changes in Net Position Budget and Actual Schedule of Cash Flows Nonmajor Enterprise Funds: Combining Statement of Net Position Combining Statement of Revenues, Expenses, and Changes in Net Position Combining Statement of Cash Flows Quinn River Television District Fund: Schedule of Revenues, Expenses, and Changes in Net Position Budget and Actual Schedule of Cash Flows Denio Television District Fund: Schedule of Revenues, Expenses, and Changes in Net Position Budget and Actual Schedule of Cash Flows Golconda Water District Fund: Schedule of Revenues, Expenses, and Changes in Net Position Budget and Actual Schedule of Cash Flows Paradise Sewer District Fund: Schedule of Revenues, Expenses, and Changes in Net Position Budget and Actual Schedule of Cash Flows McDermitt Water District Fund: Schedule of Revenues, Expenses, and Changes in Net Position Budget and Actual Schedule of Cash Flows Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities Agency Funds

5 COMPLIANCE SECTION Independent Auditor s 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 Independent Auditor s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance Schedule of Expenditures of Federal Awards Notes to the Schedule of Expenditures of Federal Award Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings Schedule of Fees Imposed Subject to the Provisions of NRS Auditor s Comments: Statute Compliance Progress on Prior Year Statute Compliance Prior Year Recommendations Current Year Recommendations...155

6 ~ DRAKE R SE~Ass CIATES, LLC l.:i..'il CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's Report To the Honorable Board of Commissioners of Humboldt County, Nevada Report on Financial Statements We have audited the accompanying financial statements of the governmental act1v1t1es, the business-type activities, each major fund, and the aggregate remaining fund information of Humboldt County, Nevada as of and fo r the year ended June 30, 20 I 8, and the related notes to the financial statements, which collecti vely comprise the County's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible fo r the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express op1111ons on these financial statements based on our audit. We conducted our audit in accordance with aud iting standards generally accepted in the United States of America and the standards appli cable to financial aud its contained in Government Auditing Standards, issued by the Comptroller General of the Un ited States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the fin ancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity 's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonab leness of significant estimates made by management, as well as evaluating the cweral\ presentation of the financial statements.

7 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County, as of June 30, 2018, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Change in Accounting Principles As described in Note 16 to the financial statements, in fiscal year 2018, the County adopted new accounting guidance, GASBS N.75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions and GASBS No. 82, Pensions Issues - an Amendment of GASB Statements No. 67, No. 68, and No. 73. Our opinion is not modified with respect to these matters. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 4-11, budgetary comparison information on pages 62-63, reconciliation of the General Fund budgetary basis to GAAP basis on page 73, the schedules related to other post-employment benefits and pensions beginning on page 74, and the notes to RSI on page 77 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consi~ted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County's basic financial statements. The combining and individual nonmajor fund statements and schedules, budgetary comparison schedules, the auditor's comments, 2

8 and the limitation of fees for business licenses schedule are presented for purposes of additional analysis and are not a required part of the financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Unifor_m Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the financial statements. The combining and individual non-major fund financial statements, the budgetary comparison schedules, and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual non-major fund financial statements and schedules, budgetary comparison schedules, and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The auditor's comments, and the limitation of fees for business licenses schedule have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 25, 2019, on our consideration of the County's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the County's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County's internal control over financial reporting and compliance. Winnemucca, Nevada February 25,

9 Statement of Net Position June 30, 2018 Governmental Activities Business-type Activities Total ASSETS Cash and investments $ 44,258,187 $ 4,967,127 $ 49,225,314 Taxes receivable 58,217-58,217 Accounts receivable 225,738 95, ,170 Interest receivable 6,707 1,104 7,811 Prepaid items 102, ,500 Notes receivable Intergovernmental receivable 2,372,316 57,373 2,429,689 Internal balances 9,035 (9,035) - Capital assets: Land 2,382, ,374 2,684,757 Construction in progress 1,826, ,517 2,085,464 Other capital assets net of depreciation 50,204,034 3,086,126 53,290,160 Total assets 101,446,950 8,759, ,205,968 DEFERRED OUTFLOWS OF RESOURCES Pension-related amounts 5,391,673 59,840 5,451,513 Other postemployment benefits-related amounts 166, ,486 Total deferred outflows of resources 5,558,159 59,840 5,617,999 LIABILITIES Accounts payable 1,684,887 44,246 1,729,133 Accrued salaries and benefits 656,398 12, ,500 Intergovernmental payable 262, ,997 Unearned revenue 253, ,462 Noncurrent liabilities: Due within one year: Compensated absences 751, ,288 Current portion of bond payable - 4,376 4,376 Current portion of capital leases 98,885-98,885 Bond payable - 224, ,875 Capital leases 321, ,506 Net pension liability 25,074, ,567 25,178,470 Other postemployment benefits 3,640,317 3,357 3,643,674 Total liabilities 32,745, ,141 33,138,166 (continued) 12

10 Statement of Net Position June 30, 2018 Governmental Activities Business-type Activities Total DEFERRED INFLOWS OF RESOURCES Pension-related amounts $ 12,206,389 $ 101,188 $ 12,307,577 Other postemployment benefits-related amounts 68, ,328 Total deferred inflows of resources 12,274, ,295 12,375,905 NET POSITION Net investment in capital assets 54,413,364 3,417,766 57,831,130 Restricted for: County and city road projects 2,317,555-2,317,555 Indigent medical 1,068,527-1,068,527 Government stabilization 1,050,843-1,050,843 Purchase of capital assets 2,344,454-2,344,454 Assessor's technology 1,109,771-1,109,771 Local agricultural education 1,365,883-1,365,883 Other purposes 1,641,670-1,641,670 Unrestricted (3,326,593) 4,906,656 1,580,063 Total net position $ 61,985,474 $ 8,324,422 $ 70,309,896 The notes to the financial statements are an integral part of this statement. 13

11 Statement of Activities For the Year Ended June 30, 2018 Expenses Primary government: Governmental activities: General government 6,442,233 Charges for Services Program Revenues Operating Capital Grants and Grants and Contributions Contributions $ $ 1,058,989 $ 67,131 $ - Judicial 4,694,324 1,379, ,109 - Public safety 8,828,481 73, ,533 - Public works 5,466, , ,233 - Health 298, Welfare 555,833-9,966 - Culture and recreation 3,052, ,366 40,678 - Community support 2,281,741 23, ,707 - Interest on long-term debt 3, Total governmental activities 31,624,437 2,885,956 1,584,357 - Business-type activities: Television 256, ,642 10,246 - Solid waste management 800,881 1,139, Water and sewer 371, ,276-39,830 Total business-type activities 1,428,855 1,609,149 10,246 39,830 Total primary government $ 33,053,292 $ 4,495,105 $ 1,594,603 $ 39,830 General revenues: Property taxes Consolidated taxes Franchise taxes Motor vehicle fuel taxes Room taxes Miscellaneous revenues Unrestricted investment earnings Payments in-lieu of taxes Transfers: Total general revenues and transfers Change in net position Net position - beginning Prior Period Adjustment Net position - beginning Net position - ending 14

12 Net (Expenses) Revenues and Changes in Net Position Primary Government Governmental Activities Business-type Activities Total $ (5,316,113) $ - $ (5,316,113) (2,466,154) - (2,466,154) (8,520,799) - (8,520,799) (5,200,035) - (5,200,035) (298,986) - (298,986) (545,867) - (545,867) (2,769,374) - (2,769,374) (2,032,919) - (2,032,919) (3,877) - (3,877) (27,154,124) - (27,154,124) - 52,986 52, , ,350 - (160,966) (160,966) - 230, ,370 (27,154,124) 230,370 (26,923,754) 11,642,288-11,642,288 7,759,446-7,759, , ,717 2,879,748-2,879, , ,955 1,828,075 11,808 1,839, ,668 10, ,249 1,802,609-1,802, ,487 (101,487) - 27,369,993 (79,098) 27,290, , , ,141 66,506,615 8,190,884 74,697,499 (4,737,010) (17,734) (4,754,744) 61,769,605 8,173,150 69,942,755 $ 61,985,474 $ 8,324,422 $ 70,309,896 The notes to the financial statements are an integral part of this statement. 15

13 Balance Sheet Governmental Funds June 30, 2018 General Fund Indigent Fund Road Fund Regional Transportation Fund 6th Judicial District Fund Assets Cash and investments $ 14,705,467 $ 1,057,216 $ 532,132 $ 2,723,832 $ 6,821,105 Taxes receivable 31,513 2, ,915 Accounts receivable 175, , ,346 Interest receivable 4, Prepaid items , Notes receivable Due from other governments 1,585, , ,671 18,060 Due from other funds 39,087-51, Total assets $ 16,542,796 $ 1,060,237 $ 1,054,275 $ 2,983,806 $ 6,855,426 Liabilities Accounts payable $ 490,929 $ 3,165 $ 169,892 $ 666,251 $ 70,158 Accrued salaries and benefits 474,203 2,854 56,499-68,396 Due to other governments 87,405 80, ,030 Due to other funds 34, Unearned revenues 89, ,868 Total liabilities 1,177,027 86, , , ,933 Deferred Inflows of Resources Unavailable revenue - property taxes 31,513 2, ,915 Fund Balances Nonspendable Restricted 157, ,317,555 2,344 Committed 95, , ,884-6,531,234 Assigned Unassigned 15,080, Total fund balances 15,334, , ,884 2,317,555 6,533,578 Total liabilities, deferred inflows, and fund balances $ 16,542,796 $ 1,060,237 $ 1,054,275 $ 2,983,806 $ 6,855,426 16

14 Indigent Medical Fund Winnemucca Events Complex Fund In Lieu-of Tax Fund Building Reserve Fund Other Governmental Funds Total Governmental Funds $ 1,146,242 $ 1,296,180 $ 4,713,053 $ 1,455,427 $ 9,807,533 $ 44,258,187 2,295 3, ,785 58, ,255-1,621 23, , , , , ,763 2,372, ,450 $ 1,148,998 $ 1,396,586 $ 4,713,053 $ 1,457,813 $ 9,902,012 $ 47,115,002 $ 6,100 $ 66,889 $ - $ - $ 211,503 $ 1,684,887-17, , ,399 72,076 16, , ,997-41, ,008 81, ,462 78, , ,920 2,939,160 2,295 3, ,785 58, ,068, ,352,834 10,898,703-1,251,639-1,457,048 2,290,473 13,424, ,713, ,713, ,080,034 1,068,527 1,251,639 4,713,053 1,457,048 9,643,307 44,117,625 $ 1,148,998 $ 1,396,586 $ 4,713,053 $ 1,457,813 $ 9,902,012 $ 47,115,002 The notes to the financial statements are an integral part of this statement. 17

15 Total Governmental Fund Balances $ 44,117,625 Amounts reported for governmental activities in the statement of net position are different because: Reconciliation of the Balance Sheet To the Statement of Net Position Governmental Funds June 30, 2018 Capital assets used in governmental activities are not resources and therefore are not reported in the funds. Governmental capital assets $ 115,737,672 Less accumulated depreciation (61,324,308) Long-term liabilities, including bonds payable are not due and payable in the current period and therefore are not reported in the governmental funds. Other postemployment benefits asset (liability) (3,640,317) Net pension asset (liability) (25,074,903) Compensated absences (751,670) Capital leases payable (420,391) 54,413,364 (29,887,281) Deferred revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the governmental funds. 58,217 Deferred outflows and inflows of resources related to pensions and other postemployment benefits are applicable to future periods and, therefore, are not reported in the governmental funds. Deferred outflows of resources related to pensions 5,391,673 Deferred inflows of resources related to pensions (12,206,389) Deferred outflows of resources related to other postemployment benefits 166,486 Deferred inflows of resources related to other postemployment benefits (68,221) Net Position of Governmental Activities $ 61,985,474 The notes to the financial statements are an integral part of this statement. 18

16 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2018 General Fund Indigent Fund Road Fund Regional Transportation Fund 6th Judicial District Fund REVENUES Taxes $ 6,507,733 $ 529,296 $ - $ - $ 2,737,701 Licenses and permits 1,098, Intergovernmental revenue 8,481,335 27,483 2,090,683 1,397, ,412 Charges for services 514, ,008-21,530 Fines and forfeits 764, ,390 Donations Miscellaneous revenues 499,826 1,887 75,531 6,832 2,406 Total Revenues 17,866, ,666 2,402,222 1,404,341 2,910,439 EXPENDITURES Current: General government 6,408, Judicial 2,949, ,194,866 Public safety 7,731, ,470,814 Public works 22,626-3,132,052 1,163,706 - Health 304, Welfare - 235, Culture and recreation Community support 1,031, Intergovernmental expenditures 576, ,671 77,643-60,072 Debt service: Principal 23,548-10, Interest 3, Total Expenditures 19,051, ,951 3,220,426 1,163,706 2,725,752 Excess (deficiency) of revenues over (under) expenditures (1,185,243) 112,715 (818,204) 240, ,687 OTHER FINANCING SOURCES (USES) Proceeds from debt 376,200-77, Transfers in 35,488-1,000, Transfers out - (500) (10,000) - (133,000) Total Other Financing Sources (Uses) 411,688 (500) 1,067,818 - (133,000) Net Change in Fund Balances (773,555) 112, , ,635 51,687 Fund Balances - beginning 16,107, , ,270 2,076,920 6,481,891 Prior period adjustment Fund Balances - beginning, restated 16,107, , ,270 2,076,920 6,481,891 Fund Balances - ending $ 15,334,256 $ 970,778 $ 827,884 $ 2,317,555 $ 6,533,578 19

17 Indigent Medical Fund Winnemucca Events Complex Fund In Lieu-of Tax Fund Building Reserve Fund Other Governmental Funds Total Governmental Funds $ 421,168 $ 561,576 $ - $ 140,399 $ 768,018 $ 11,665, ,098, ,955 1,802, ,698 15,046, ,870-23,115 25,319 1,046, ,236 1,020,428-1,387, ,387,320 3,557 17,765-17,771 15, , ,725 2,576,486 1,802, ,285 1,780,015 31,906, ,778 6,830, ,159 4,895, ,045 9,258, ,318, , , ,674-3,913, ,099,484 5,012, ,854 1,905, , ,338 1,100, , , ,840 3,913, ,237,658 34,221,873 (39,115) (1,336,676) 1,802, ,285 (1,457,643) (2,314,950) , ,220,000 2,255,488 - (2,501) (2,000,000) - (8,000) (2,154,001) - (2,501) (2,000,000) - 1,212, ,505 (39,115) (1,339,177) (197,391) 181,285 (245,643) (1,759,445) 1,107,642 2,919,615 4,910,444 1,275,763 9,888,950 46,205,869 - (328,799) (328,799) 1,107,642 2,590,816 4,910,444 1,275,763 9,888,950 45,877,070 $ 1,068,527 $ 1,251,639 $ 4,713,053 $ 1,457,048 $ 9,643,307 $ 44,117,625 The notes to the financial statements are an integral part of this statement. 20

18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds To the Statement of Activities For the Year Ended June 30, 2018 Net Change in Fund Balances - Governmental Funds $ (1,759,445) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. The cost of those assets is depreciated over their estimated useful lives in the statement of activities. Expenditures for capital assets $ 4,722,366 Less current year depreciation (3,054,305) 1,668,061 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in governmental funds. Change in deferred revenue (41,370) Governmental funds report pension contributions as expenditures. However, in the Statement of Activities, the cost of pension benefits earned net of employee contributions is reported as pension expense. County pension contributions 1,635,678 Cost of benefits earned (875,518) County OPEB Contributions 166,486 Cost of OPEB benefits earned (144,522) 782,124 Loan proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of debt principal is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Debt transactions are: financial resources are not reported as revenues in the governmental fund statement. (454,018) Capital lease-principal payments 33,627 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. Change in long-term compensated absences (13,110) Change in Net Position of Governmental Activities $ 215,869 The notes to the financial statements are an integral part of this statement. 21

19 Statement of Net Position Proprietary Funds June 30, 2018 Humboldt Television Fund Business-type Activities - Enterprise Funds Solid Waste Management Fund McDermitt Sewer District Fund Other Enterprise Funds Totals Current Year ASSETS Current Assets: Cash and investments $ 1,007,563 $ 3,426,665 $ 147,093 $ 371,447 $ 4,952,768 Accounts receivable 11,028 69,936 3,941 10,527 95,432 Interest receivable - 1, ,104 Intergovernmental receivable 10,246 7,297-39,830 57,373 Total Current Assets 1,028,837 3,505, , ,804 5,106,677 Noncurrent Assets: Restricted cash ,359-14,359 Capital assets: Land , , ,374 Construction in progress 187, , ,517 Buildings 24,195-40,647 12,770 77,612 Machinery and equipment 741, ,676 91, ,853 1,233,832 Infrastructure - - 1,345,837 3,412,111 4,757,948 Less accumulated depreciation (720,740) (94,803) (656,833) (1,510,890) (2,983,266) Total capital assets (net of accumulated depreciation) 232,558 5, ,555 2,545,031 3,647,017 Total noncurrent assets 232,558 5, ,914 2,545,031 3,661,376 Total Assets 1,261,395 3,510,875 1,028,948 2,966,835 8,768,053 DEFERRED OUTFLOWS OF RESOURCES Pension-related amounts 14,258 28,231 1,745 15,606 59,840 LIABILITIES Current Liabilities: Accounts payable 3,443 4,997 9,089 26,717 44,246 Accrued liabilities 7,013 1, ,835 12,720 Due to other funds 1, ,500 9,035 Current portion of bond payable - - 4,376-4,376 Total Current Liabilities 11,991 6,810 13,524 38,052 70,377 Noncurrent Liabilities: Net pension liability 4,177 93, , ,567 Other postemployment benefits - 3, ,357 Bond payable , ,875 Total Noncurrent Liabilities 4,177 96, ,796 4, ,799 Total Liabilities 16, , ,320 42, ,176 DEFERRED INFLOWS OF RESOURCES Pension-related amounts 31,300 42,928 2,766 24, ,188 Other postemployment benefits-related amounts Total deferred inflows of resources 31,300 43,035 2,766 24, ,295 NET POSITION Net investment in capital assets 232,558 5, ,304 2,545,031 3,417,766 Unrestricted 995,627 3,386, , ,248 4,906,656 Total Net Position $ 1,228,185 $ 3,392,351 $ 788,607 $ 2,915,279 $ 8,324,422 The notes to the financial statements are an integral part of this statement. 22

20 Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended June 30, 2018 Humboldt Television Fund Business-type Activities - Enterprise Funds Solid Waste McDermitt Management Sewer District Fund Fund Other Enterprise Funds Totals Current Year OPERATING REVENUES Charges for Services: User fees $ 282,812 $ 1,139,231 $ 43,947 $ 143,159 $ 1,609,149 Grants 10, ,830 50,076 Miscellaneous 11, ,652 Total Operating Revenues 304,660 1,139,231 43, ,039 1,670,877 OPERATING EXPENSES Salaries and wages 90,818 37,531 5,400 50, ,565 Employee benefits 28,052 9,362 1,336 12,491 51,241 Services and supplies 84, ,310 31, ,076 1,029,815 Depreciation 21,229 1,678 37,431 92, ,066 Total Operating Expenses 224, ,881 75, ,111 1,418,687 Operating Income (Loss) 80, ,350 (31,291) (135,072) 252,190 NONOPERATING REVENUES (EXPENSES) Interest earnings - 10, ,581 Miscellaneous income Interest expense - - (10,168) - (10,168) Total Nonoperating Revenues (Expenses) - 10,581 (10,168) Income (Loss) Before Transfers 80, ,931 (41,459) (134,916) 252,759 TRANSFERS IN (OUT) Transfers out (100,667) (300) (210) (310) (101,487) Change in Net Position (20,464) 348,631 (41,669) (135,226) 151,272 NET POSITION, JULY 1 1,244,300 3,046, ,573 3,067,236 8,190,884 Prior Period Adjustment 4,349 (3,055) (2,297) (16,731) (17,734) NET POSITION, JULY 1, as restated 1,248,649 3,043, ,276 3,050,505 8,173,150 NET POSITION, JUNE 30 $ 1,228,185 $ 3,392,351 $ 788,607 $ 2,915,279 $ 8,324,422 The notes to the financial statements are an integral part of this statement. 23

21 Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2018 Humboldt Television Fund Business-type Activities - Enterprise Funds Solid Waste Management Fund McDermitt Sewer District Fund Other Enterprise Funds Totals Current Year CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 298,674 $ 1,145,112 $ 43,366 $ 141,026 $ 1,628,178 Cash payments for personnel costs (120,071) (48,947) (7,032) (63,452) (239,502) Cash payments for services and supplies (75,508) (753,904) (27,550) (137,789) (994,751) Net Cash Provided (Used) by Operating Activities 103, ,261 8,784 (60,215) 393,925 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers to other funds (100,667) (300) (210) (310) (101,487) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchases of capital assets (84,832) (84,832) Interest paid on debt service - - (10,168) - (10,168) Principal paid on debt service - - (4,191) - (4,191) Net Cash Provided (Used) by Financing Activities - - (14,359) (84,832) (99,191) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received - 10, ,237 Net Increase (Decrease) in Cash and Investments 2, ,042 (5,785) (145,201) 203,484 CASH AND INVESTMENTS, JULY 1 $ 1,005,135 $ 3,074,623 $ 167,237 $ 516,648 $ 4,763,643 CASH AND INVESTMENTS, JUNE 30 $ 1,007,563 $ 3,426,665 $ 161,452 $ 371,447 $ 4,967,127 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 80,203 $ 338,350 $ (31,291) $ (135,072) $ 252,190 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operations Depreciation 21,229 1,678 37,431 92, ,066 Change in assets and liabilities: (Increase) decrease in: Accounts receivable (5,986) 5,881 - (42,013) (42,118) Inventory 4,598 - (581) - 4,017 Increase (decrease) in: Accounts payable 4,252 (1,594) 3,521 24,287 30,466 Accrued salaries and benefits (1,201) (2,054) (296) (145) (3,696) Total adjustments 22,892 3,911 40,075 74, ,735 Net Cash Provided (Used) by Operating Activities $ 103,095 $ 342,261 $ 8,784 $ (60,215) $ 393,925 The notes to the financial statements are an integral part of this statement. 24

22 Statement of Fiduciary Net Position Fiduciary Funds June 30, 2018 AGENCY FUNDS INVESTMENT TRUST FUND ASSETS Cash and investments $ 4,084,509 $ 4,639,675 Interest receivable Total Assets $ 4,084,509 $ 4,640,265 LIABILITIES Due to other governments $ 3,768,710 $ - Funds held in trust for others 315,799 - Total Liabilities 4,084,509 - NET POSITION Held in trust $ - $ 4,640,265 The notes to the financial statements are an integral part of this statement. 25

23 Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2018 INVESTMENT TRUST FUND ADDITIONS Investment earnings: Interest $ 11,774 Net increase (decrease) in share transactions 868,753 Change in net position 880,527 Net position - beginning 3,759,738 Net position - ending $ 4,640,265 The notes to the financial statements are an integral part of this statement. 26

24 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements of Humboldt County have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standardsetting body for establishing governmental accounting and financial reporting principles. The GASB periodically updates its codification of the existing Governmental and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. A summary of the more significant accounting policies consistently applied in the preparation of the accompanying financial statements follows. A. Reporting Entity Humboldt County was incorporated as one of the original nine counties of the State of Nevada in 1861 and is governed by a five-member elected Board of Commissioners. The major operations of Humboldt County are property tax assessment and collections, public safety, road maintenance, judicial, recreation and administrative activities. These financial statements include the Humboldt Fire District General Fund, the Library Memorial Fund, the Quinn River Television Fund, the Denio Television District Fund, the McDermitt General Improvement District Fund, the Paradise Sewer District Fund, and the Golconda Water District Fund as component units of Humboldt County, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity. Component units include legally separate organizations for which the County is financially accountable or the Board has the ability to impose its will on these entities. Blended component units are, in substance, part of the primary government s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. All component units of the County are presented in this blended format. B. Basic Financial Statements Government-wide Statements The basic financial statements include both government-wide (based upon Humboldt County as a whole) and fund financial statements. The reporting focus is on either Humboldt County as a whole or major individual funds and nonmajor funds in the aggregate (within the fund financial statements). Both the government-wide and fund financial statements (within the basic financial statements) categorize primary activities as either governmental or business-type. The government-wide financial statements (the Statement of Net Position and Statement of Activities) report information on all of the non-fiduciary activities of Humboldt County. Eliminations have been made to minimize the double-counting of internal activities. Interfund activities relating to services provided and used between functions are not eliminated. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 27

25 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 As management of Humboldt County, we offer readers of Humboldt County s financial statements this narrative overview and analysis of the financial activities of Humboldt County for the fiscal year ended June 30, We encourage readers to consider the information presented here in conjunction with the financial statements and notes to the financial statements to gain a more complete picture of the information presented. All amounts, unless otherwise indicated, are expressed in whole dollars. Financial Highlights The assets and deferred outflows of resources of Humboldt County exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $70,309,896 (net position). Of this amount, $1,580,063 (unrestricted net position) may be used to meet the government s ongoing obligations to citizens and creditors. The auditor s report offers an unqualified opinion on the financial statements, the highest opinion that can be obtained. The government s total net position decreased by $4,387,603. This decrease is primarily the result of restatements of beginning net position resulting from an error correction in the Winnemucca Events Complex Fund and the implementation of GASBS No. 75 and 82 related to OPEB and Pension liabilities. The details of the net position restatement can be found in Note 15 to the financial statements. As of the close of the current fiscal year, Humboldt County s governmental funds reported the combined ending fund balances of $44,117,625, a decrease of $2,088,244 in comparison with the prior year, $328,799 of which was due to the error correction detailed in Note 15 to the financial statements. The remaining decrease can be attributed to expenditures increasing more than revenues over prior year. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to Humboldt County s basic financial statements. Humboldt County s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of Humboldt County s finances, in a manner similar to that of a private-sector business. The statement of net position presents information on all of Humboldt County s assets, deferred outflows, liabilities, deferred inflows, and net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of Humboldt County is improving or deteriorating. The statement of activities presents information showing how the government s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish the functions of Humboldt County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of Humboldt County include general government, public safety, public works, judicial, health, welfare, culture and recreation and community support. The business-type activities of Humboldt County include television services, solid waste management operations, and water and sewer services. The government-wide financial statements include Humboldt County itself (known as the primary government), and the library memorial fund, the general fund of the Humboldt Fire District, the Quinn River Television Fund, the Denio Television District Fund, the Golconda Water District Fund, the Paradise Sewer Fund, the McDermitt Water Fund and the McDermitt Sewer Fund, which are considered component units of Humboldt County and have been included in these statements. 4

26 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 The government-wide financial statements can be found on pages Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Humboldt County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of Humboldt County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Humboldt County maintains twenty-four individual governmental funds including two internally reported funds (reported as part of the general fund). Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, indigent fund, road fund, regional transportation fund, 6 th judicial district fund, indigent medical fund, Winnemucca events complex fund, in lieu-of tax fund, and the building reserve fund, all which are considered to be major funds. Data from the other thirteen governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. Humboldt County adopts an annual appropriated budget for all of its governmental and proprietary funds. A budgetary comparison schedule has been provided for the funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages of this report. Proprietary funds. Humboldt County maintains only one type of proprietary fund. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Humboldt County uses enterprise funds to account for its television fund, its solid waste management fund, and its special district television and water and sewer funds. Humboldt County does not utilize internal service funds, which are also a proprietary fund type. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the television fund, the solid waste management fund, and the McDermitt Sewer District Fund, all of which are considered to be major funds of Humboldt County, and combined information for the remaining special district television, water, and sewer funds, which are considered to be nonmajor funds of Humboldt County. The basic proprietary fund financial statements can be found on pages of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support Humboldt County s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund statements can be found on pages of this report. Notes to the financial statements and required supplementary information. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages of this report and the required supplementary information can be found on pages

27 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain supplementary information, including individual fund statements and schedules providing budget to actual comparisons. These schedules test compliance with budgetary constraints and management directives to enhance accountability at the fund and function level. This information may be found on pages of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government s financial position. In the case of Humboldt County, assets and deferred outflows exceeded liabilities and deferred inflows by $70,309,895 at the close of the most recent fiscal year. A large portion of Humboldt County s net position (82.3%) reflects its net investment in capital assets (e.g., land, buildings, infrastructure, machinery, and equipment). Humboldt County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. S NET POSITION* Governmental Activities Business-type Activities Total Current and other assets $47,033,586 $48,145,950 $5,112,001 $4,878,559 $52,145,587 $53,024,509 Capital assets 54,413,364 52,745,302 3,647,017 3,715,253 58,060,381 56,460,555 Total assets 101,446, ,891,252 8,759,018 8,593, ,205, ,485,064 Deferred Outflows of Resources Pension-related amounts 5,391,673 6,090,756 59,840 47,719 5,451,513 6,138,475 Other postemployment benefits-related amounts 166, ,486 - Total deferred outflows of resources 5,558,159 6,090,756 59,840 47,719 5,617,999 6,138,475 Long-term liabilities outstanding 29,887,281 28,901, , ,215 30,224,074 29,279,804 Other liabilities 2,857,744 1,840,493 56,348 27,243 2,914,092 1,867,736 Total liabilities 32,745,025 30,742, , ,458 33,138,166 31,147,540 Deferred Inflows of Resources Pension-related amounts 12,206,389 9,733, ,188 45,189 12,307,577 9,778,500 Other postemployment benefits-related amounts 68, ,328 - Total deferred inflows of resources 12,274,610 9,733, ,295 45,189 12,375,905 9,778,500 Net Position: Net investment in capital assets 54,413,364 52,745,302 3,417,766 3,715,253 57,831,130 56,460,555 Restricted 10,898,703 9,961, ,898,703 9,961,729 Unrestricted (3,326593) 3,799,584 4,906,656 4,475,631 1,580,063 8,275,215 Total net position $61,985,474 $66,506,615 $8,324,422 $8,190,884 $70,309,896 $74,697,499 *For more detailed information, see the government-wide Statement of Net Position and Notes to the Financial Statements. An additional portion of Humboldt County s net position ($10,898,703) represents resources subject to external restrictions (statutory, bond covenants or granting agency) on how they may be used. The remaining balance of unrestricted net position ($1,580,063) may be used to meet the government s ongoing obligations to citizens and creditors. 6

28 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 At the end of the current fiscal year, Humboldt County is able to report a positive balance in net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation held true for the prior fiscal year. Governmental activities, after factoring in the decrease due to the prior period adjustments related to the error correction and adoption of GASBS 75 and 82, increased Humboldt County s net position by $215,869, compared to a decrease of $2,421,427 in the prior year. Business-type activities increased the County s net position by $151,272, after factoring in the decrease due to the prior period adjustments related to the adoption of GASBS 75 and 82, compared to a decrease of $37,730 in the prior year. See Note 15 for additional information. The details of the changes are noted in the following table: S CHANGES IN NET POSITION Governmental Activities Business-type Activities Total Revenues: Program revenues: Charges for services $ 2,885,956 $ 2,848,621 $ 1,609,149 $ 1,533,626 $ 4,495,105 $ 4,382,247 Operating grants and contributions 1,584, ,803 10,246 3,786 1,594, ,589 Capital grants and contributions - 32,254 39,830-39,830 32,254 General revenues: Property taxes 11,642,288 9,124, ,642,288 9,124,288 Consolidated taxes 7,759,446 7,251, ,759,446 7,251,005 Franchise taxes 800, , , ,806 Motor vehicle fuel taxes 2,879,748 2,800, ,879,748 2,800,402 Room taxes 382, , , ,288 Miscellaneous 1,828, ,375 11,808 11,720 1,839, ,095 Unrestricted investment earnings 172, ,226 10,581 4, , ,184 Payments in-lieu of taxes 1,802,609 1,766, ,802,609 1,766,335 Insurance recoveries - 328, ,799 Total revenues 31,738,819 26,632,202 1,681,614 1,554,090 33,420,433 28,186,292 Expenses: General government 6,442,233 5,618, ,442,233 5,618,318 Public safety 8,828,481 8,233, ,828,481 8,233,431 Judicial 4,694,324 4,388, ,694,324 4,388,087 Public works 5,466,544 5,494, ,466,544 5,494,227 Health 298, , , ,775 Welfare 555, , , ,379 Culture and recreation 3,052,418 2,794, ,052,418 2,794,914 Community support 2,281,741 1,948, ,281,741 1,948,548 Interest on long-term debt 3, ,877 - Television , , , ,927 Solid waste management , , , ,972 Water and sewer , , , ,871 Total expenses 31,624,437 29,404,679 1,428,855 1,240,770 33,053,292 30,645,449 Increase (decrease) in net position before transfers 114,382 (2,772,477) 252, , ,140 (2,459,157) Transfers 101, ,050 (101,487) (351,050) - - Increase (decrease) in net position 215,869 (2,421,427) 151,272 (37,730) 367,140 (2,459,157) Net position - July 1, as restated 61,769,605 68,928,042 8,173,150 8,228,614 69,942,755 77,156,656 Net position - June 30, $61,985,474 $66,506,615 $8,324,422 $8,190,884 $70,309,896 $74,697,499 7

29 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Program Expenses and Revenues for Governmental Activities: The following table presents program expenses and revenues for governmental activities. To aid in the understanding of the Statement of Activities, some additional explanation is given. Of particular interest is the format which is significantly different than a typical Statement of Revenues, Expenses, and Changes in Fund Balance. You will notice expenses are listed in the first column with revenues from that particular program reported to the right. The result is a Net (Expense)/Revenue. The reason for this kind of format is to highlight the relative financial burden of each of the functions on the County s taxpayers. It also identifies how much each function draws from the general revenues or if it is self-financing through fees and grants. Overall, program revenues were insufficient in covering program expenses for governmental activities. The net program expenses of these governmental activities were, therefore, supported by general revenues, mainly taxes received and fund reserves applied. Expenses were up from prior year which were related negotiated increases in salary and benefits, the ongoing public safety communications program and replacement costs for the riding arena. The largest increases were in the general government ($823,915) and public safety ($595,050) functions. The three largest revenue sources for the County are property taxes, consolidated taxes and fuel taxes Governmental Activities: Program Expenses Program Revenues Net Program Exp/(Rev) General government $ 6,442,233 $ 5,618,318 $ 1,126,120 $ 1,061,968 $ (5,316,113) $ (4,556,350) Public safety 8,828,481 8,233, , ,060 (8,520,799) (8,014,371) Judicial 4,694,324 4,388,087 2,228,170 2,075,160 (2,466,154) (2,312,927) Public works 5,466,544 5,494, , ,413 (5,200,035) (5,385,814) Health 298, , (298,986) (320,775) Welfare 555, ,379 9,966 - (545,867) (606,379) Cultural and recreation 3,052,418 2,794, , ,871 (2,769,374) (2,562,043) Community support 2,281,741 1,948, ,822 35,206 (2,032,919) (1,913,342) Interest on long-term debt 3, (3,877) - Totals $31,624,437 $29,404,679 $4,470,313 $3,732,678 $(27,154,124) $(25,672,001) Program Expenses and Revenues for Business-type Activities: This table presents program expenses and revenues for business-type activities. Program revenues generated from business-type activities were sufficient to cover program expenses in the television fund and the solid waste management fund during the current year. Program Expenses Program Revenues Net Program Exp/(Rev) Business-Type Activities: Television $ 256,902 $ 199,927 $ 309,888 $ 264,991 $52,986 $ 65,064 Solid waste management 800, ,972 1,139,231 1,104, , ,836 Water and sewer 371, , , ,613 (160,966) (82,258) Totals $1,428,855 $1,240,770 $1,659,225 $1,533,626 $230,370 $296,642 8

30 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Financial Analysis of the Government s Funds As noted earlier, Humboldt County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of Humboldt County s governmental funds is to provide information on the near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing Humboldt County s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government s net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, Humboldt County s governmental funds reported combined ending fund balances of $44,117,625, a decrease of $2,088,244 in comparison with the prior year. The general fund is the chief operating fund of Humboldt County. At the end of the current fiscal year, unassigned fund balance of the general fund was $15,080,034 while the total fund balance reached $15,334,256. As a measure of the general fund s liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Unassigned fund balance represents 79% of total general fund expenditures. The fund balance of Humboldt County s general fund decreased $773,555 during the current year. The key factors in this decrease were the increases service & supplies expenditures and negotiated increases in salary and benefits. General fund revenues increased $2,229,241, or 14%, from the prior year. General fund expenditures increased over the prior fiscal year by $1,447,886. The indigent fund s ending fund balance increased $112,215 from the prior year. Total revenue increased $120,880 due mostly to net proceeds payments received. Expenditures increased $59,210 from the prior year. Humboldt County s road fund has an ending fund balance of $827,884 which is an increase of $249,614 from the prior year. This increase is primarily the result of a larger transfer in from the in-lieu-of tax fund and increased intergovernmental revenue. The regional transportation fund s ending fund balance increased $240,635 from the prior year. Revenues increased 5.3% from the prior fiscal year. Expenditures increased $120,354 due to increased road projects activity in the current fiscal year. The 6 th judicial district s fund balance increased $51,687 over the prior year. Current year revenues increased by $628,739 or 27.6% from the previous year and were due mostly to net proceeds payment. Expenditures increased slightly by $15,063 from the previous fiscal year. The indigent medical fund s ending fund balance decreased $39,115 or 3.5% over the prior year. Revenues increased by $88,063 or 26.2% over prior year. Expenditures were $47,040 or 9.2% lower than prior year. The decrease in expenditures was the result of a decrease in indigent medical assistance expenditures. The Winnemucca events complex fund has an ending fund balance of $1,251,639 which is a decrease of $1,667,976 over the prior year. Revenues increased by $983,053 or 61.7% over the prior year. This was largely the result of donations received from the WCVA for approximately ½ the cost of the new riding arena. Expenditures also increased by $2,911,344 over the prior year due to increases in capital outlay for the riding arena. The building reserve fund s ending fund balance increased $181,285. Revenues increased by $42,308 over prior year. Expenditures remained the same at zero. Proprietary funds. Humboldt County s proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail. 9

31 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Unrestricted net position at the end of the year amounted to $995,627 for the television fund, $3,386,478 for the solid waste management fund and $154,303 for the McDermitt sewer fund. The portion of net position invested in capital assets was $232,558 for the TV fund, $5,873 for the solid waste management fund and $634,304 for the McDermitt sewer fund. The total growth in net position for the funds was ($20,464), $348,631 and ($41,664) respectively. Other factors concerning the finances of these three funds have already been addressed in the discussion of Humboldt County s business-type activities. General Fund Budgetary Highlights Functions represent the legal level of budgetary control. Actual expenditures were 91% of appropriations and $1,836,069 less than the final budget. Capital Asset and Debt Administration Capital assets. Humboldt County s investment in capital assets for its governmental and business-type activities as of June 30, 2018, amounts to $58,060,381 (net of accumulated depreciation). This investment in capital assets includes land, buildings and systems, improvements, infrastructure and machinery and equipment. Humboldt County s investment in capital assets for the current fiscal year increased $1,668,062 in governmental activities. Business-type activities capital assets decreased ($59,379). S CAPITAL ASSETS (Net of Depreciation) Governmental Activities Business-type Activities Total Land and CIP $ 4,209,330 $ 3,704,681 $ 560,891 $ 490,364 $ 4,770,221 $ 4,195,045 Land improvements 247, , , ,552 Buildings/ improvements 11,284,709 8,844,300 2,847 3,146 11,287,556 8,847,446 Infrastructure 34,579,333 35,982,854 2,939, ,193 37,519,035 36,156,047 Equipment 4,092,172 3,909, ,577 3,039,693 4,235,749 6,949,608 Total $54,413,364 $52,745,302 $3,647,017 $3,706,396 $58,060,381 $56,451,698 Additional information on Humboldt County s capital assets can be found in Notes 1 (E) 5 and Note 5 of the notes to the financial statements. Long-term debt. McDermitt General Improvement District authorized a Series 2008 Revenue Bond on November 6, 2008 in the maximum aggregate principal sum of $270,000 for the purpose of improving and equipping a sanitary sewer project. S OUTSTANDING DEBT Governmental Activities Business-type Activities Total Compensated Absences Payable $ 751,670 $ 738,560 $ 618 $ - $ 752,288 $ 738,560 Net Pension Liability 25,074,903 26,572, , ,230 25,178,470 26,686,524 Other postemployment Benefits 3,640,317 1,590,735 3,357 30,335 3,643,674 1,621,070 Sewer Revenue Bond , , , ,650 Capital Leases 420, , ,391 Total $29,887,281 $28,901,589 $336,793 $378,215 $29,803,065 $29,279,804 10

32 MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Additional information on Humboldt County s long-term debt can be found in Notes 1 E (7 and 8) and Notes 8, 10, and 13 of the notes to the financial statements. Economic Factors and Next Year s Budget Humboldt County s Fiscal Year budget reflects a General Fund in which estimated revenues and other financing sources equal $14,223,506 and budgeted expenditures and other financing uses are $20,990,990. Fiscal Year is full of uncertainty, especially as it relates to revenues. The County has seen a slight increase in population and a decrease in assessed value. Combined Tax revenues have increased $508,441, the County is expected to receive Net Proceeds in although the amount is always uncertain. Fortunately, the County has budgeted very conservatively for this revenue in the FY budget. While projected expenditures are $20,573,890, actual expenditures should stay close to levels of $19,051,378, including a modest Cost of Living (2.0%) and Merit increase of 2.5% for those employees who qualify. Other expenditures included in the budget are the replacement costs of software needed in most departments as the County s computer software supplier, Advanced Data Systems, has announced that they will be closing at the end of The County also anticipates completing the next phase of the Public Safety Radio Project. The County's economy has seen housing prices stabilize in most categories, the mining industry employment numbers have been stable over the past year. Although consolidated taxes have seen a slight increase of 7%, the County has been very conservative in the 2019 budget estimate. The County's practice of budgeting conservatively on revenues and budgeting liberally on expenditures has resulted in a strong, fiscally responsible government. Humboldt County continues to maintain one of the lowest tax rates in the State of Nevada. Requests for Information This financial report is designed to provide a general overview of Humboldt County's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Humboldt County, Comptroller's Office, 50 W. Fifth Street, Room 203, Winnemucca, Nevada

33 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) In the government-wide Statement of Net Position, both the governmental and business-type activity columns are presented on a consolidated basis by column, and are reflected on a full accrual, economic resource basis which recognizes all long-term assets and receivables as well as long-term debt and obligations. Humboldt County s net position is reported in three parts net investment in capital assets, restricted, and unrestricted net position. The government-wide Statement of Activities reports both the gross and net cost of each of Humboldt County s functions and business-type activities. The functions are also supported by general government revenues (property and combined taxes, certain intergovernmental revenues, interest income not legally restricted for specific programs, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating grants and capital grants. Program revenues include charges to customers, operating grants and contributions and capital grants and contributions. Program revenues must be directly associated with the function or business-type activity. Operating grants include operating-specific and discretionary grants, while the capital grants reflect capital-specific grants. The net costs (by function or business-type activity) are normally covered by general revenue. C. Basic Financial Statements Fund Financial Statements The financial transactions of Humboldt County are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets, deferred outflows, liabilities, deferred inflows, fund equity, revenues and expenditures/expenses. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter is excluded from the government-wide financial statements. The emphasis in fund financial statements is on major funds in either governmental or business-type (proprietary) activity categories. Nonmajor funds by category are summarized into a single column. GASB Statement No. 34 sets forth minimum criteria (percentage of assets, liabilities, revenues or expenditures/expenses of either fund category or the governmental and business-type categories combined) for the determination of major funds. Humboldt County s management may electively add funds as major funds when it is determined the funds have specific community or management focus. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The focus of the governmental funds measurement in the fund financial statements is upon determination of financial position and changes in financial position (sources, uses and balances of financial resources) rather than upon net income. The focus for proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund s principal ongoing operations. Operating expenses for enterprise funds include the cost of sales and services, administrative 28

34 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) expenses and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The generally accepted accounting principles applicable are those similar to businesses in the private sector. Humboldt County s fiduciary funds are presented in the fiduciary fund financial statements by type. Since, by definition, these assets are held for the benefit of a third party and cannot be used to address activities or obligations of Humboldt County, these funds are not incorporated into the government-wide statements. Humboldt County reports the following major governmental funds: The General Fund is the government s primary operating fund. It is used to account for resources traditionally associated with Humboldt County that are not required legally or by sound financial management to be accounted in another fund. The Indigent Fund is used to account for resources and expenditures for indigent assistance. The Road Fund is used to account for resources and expenditures for Humboldt County s roads. The Regional Transportation Fund is used to account for resources and expenditures on road projects of regional significance. The 6 th Judicial District Fund is used to account for the resources and expenditures for the District Court and Juvenile Probation. The Winnemucca Events Complex Fund is used to account for the resources and expenditures associated with the operations of Humboldt County s fairgrounds and indoor events center. The Indigent Medical Fund is used to account for the resources and expenditures relating to indigent medical care. The In Lieu of Tax Fund is used to account for resources related to federal in lieu of taxes monies. The Building Reserve Fund is used to account for the resources and expenditures for major capital projects. Humboldt County reports the following major proprietary funds: The Humboldt Television Fund is used to account for television services provided to most of the residents of Humboldt County (some County residents are provided television services from other districts). 29

35 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The Solid Waste Management Fund is used to account for landfill operations of Humboldt County. The McDermitt Sewer Fund is used to account for sanitary sewer services to the residents of McDermitt. Additionally, Humboldt County reports the following fiduciary fund types: Agency funds are custodial in nature and do not involve measurement of results of operations. The funds account for assets held by the County as an agent for various governments, special districts and individuals. Included are funds for apportioned property and sales taxes, shared revenues and other financial resources for schools, hospital, special districts, boards and other state and city agencies; bonds posted with the District Court and Justice Courts; funds held for inmates housed at the County jail; unapportioned taxes for other local governments; and assets held on behalf of special districts, boards and other miscellaneous agencies. Investment trust fund is the external investment pool administered by Humboldt County. Voluntary participants include Humboldt County School District (Debt Service), Golconda Fire Protection District and Paradise Fire Protection District. D. Measurement Focus and Basis of Accounting The measurement focus describes the types of transactions and events that are reported in a fund s operating statement. Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. When revenues are due but will not be collected within 60 days after year-end, the receivable is recorded and an offsetting deferred revenue account is established. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, other postemployment benefits and claims and judgments, are recorded only when payment is due. 30

36 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Governmental revenues considered to be susceptible to accrual, and so recognized as revenues of the current fiscal period, are ad valorem taxes, interest, grant revenues and revenues collected and distributed by the State. These include consolidated taxes, government services taxes, and motor vehicle fuel taxes. Licenses and permits, fines, and charges for services are recognized as revenue when they are received. E. Financial Statement Presentation 1. Budgets and Budgetary Accounting: Annual budgets are adopted on a basis consistent with GAAP for all funds except trust and agency funds, which do not require budgets, and certain special revenue funds that do not meet the requirements to be considered a fund under U.S. GAAP. All annual appropriations lapse at fiscal year-end. Humboldt County adheres to the Local Government Budget and Finance Act (NRS ) incorporated within state statutes and the procedures set by the Department of Taxation to establish the budgetary data reflected in these financial statements. On or before April 15, the County submits a tentative budget to the Nevada Department of Taxation for the next fiscal year, commencing on July 1. Public hearings are held on or before the third Tuesday in May. The Board adopts the budget on or before June 1 and files it with the Nevada State Department of Taxation. In accordance with state statute, actual expenditures may not exceed budgetary appropriations of the various governmental functions (excluding the debt service function and certain intergovernmental expenditures) of the General Fund, Capital Projects Funds and Special Revenue Funds except as specifically permitted by NRS In proprietary funds, the sum of operating and non-operating expenses may not exceed total appropriations. All budget amounts presented in these financial statements and schedules reflect the amended budget which has been adjusted for legally authorized revisions of the annual budgets during the year. Original budgets are provided for the General Fund and major special revenue funds in compliance with reporting requirements. The Comptroller may approve budget adjustments within a function. Budget adjustments between functions or funds may be approved by the Comptroller with Board notification. Adjustments that affect fund balance or increase the original budget require Board approval. Encumbrance accounting is employed in governmental and proprietary funds. In governmental funds, encumbrances, which include purchase orders and contracts awarded for which goods and services have not been received at year-end, are re-appropriated in the subsequent year. 31

37 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2. Cash and Investments: For purposes of the statement of cash flows presented for proprietary funds, cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to cash and have an original maturity date of three months or less. Since all cash in proprietary funds is pooled with the rest of Humboldt County s cash and is available upon demand, all cash and investments in those funds are considered cash equivalents. All interest earned on cash deposits is recognized in the General Fund in accordance with Nevada Revised Statutes, except for amounts credited to various other funds in accordance with law or contract and is allocated based upon their combined investment balances. Investments are recorded at fair value. Humboldt County may invest in the following types of securities per Nevada Revised Statutes and : Obligations of the United States, or an agency or instrumentality of the United States, or a corporation sponsored by the government, maturing within ten (10) years from the date of purchase. Time certificates of deposit from commercial banks and insured savings and loan associations within the State of Nevada, and certain farm loan bonds. Certain securities issued by local governments of the State of Nevada and other securities expressly provided by other statutes, including repurchase agreements. Money market mutual funds that are registered with the Securities and Exchange Commission are AAA rated and invest only in securities of the Federal Government for fully collateralized repurchase agreements. State of Nevada Local Government Investment Pool. NRS requires Humboldt County s Treasurer or the appropriate officer to take physical possession of collateral in the name of Humboldt County for all securities except those subject to repurchase by the seller if Humboldt County has a fully perfected, first-priority interest having a fair market value equal to or greater than the repurchase price of the security. 32

38 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3. Investment Pool Investment Earnings: Interest income is recorded on the accrual basis in the investment pool. Net realized gains (losses) on investments are the sum of the differences between the cost (if purchased during the fiscal year) or the fair value of the investment at the beginning of the year, and the net selling price received for investments that are sold or matured. The net increase (decrease) in the fair value of investments in the investment pool is the difference between the cost (if purchased during the fiscal year) or the fair value of the investments at the beginning of the year, and the fair value of the investments at the end of the year. 4. Property Taxes Receivable: All real property in Humboldt County is subject to physical reappraisal every five years. Annual adjustments are made to the assessed valuation to reflect general changes in property values. The assessed valuation of the property and its improvements is computed at 35% of taxable value as defined by statute. Taxable value is defined as full cash value for land, replacement cost less straight-line depreciation for land improvements, and statutory depreciation for personal property. The maximum depreciation allowed is 75% of replacement cost. The maximum tax rate for all overlapping governmental units within any county, as established by the state constitution, is $5 per $100 assessed valuation. The combined overlapping rate for any county is further limited by state statute to $3.64 per $100 assessed valuation except in cases of severe financial emergency as defined in NRS Humboldt County s individual tax rate for fiscal year was $ per $100 of assessed valuation. The total combined rate was $ per $100 of assessed valuation in the unincorporated area of Humboldt County, exclusive of special district tax rates. Tax rates are levied by Humboldt County Commissioners immediately after the Nevada Tax Commission has certified the combined rate. Upon certification, the rates are transmitted to Humboldt County s Treasurer for billing. The tax rate levied is for the current fiscal year, July 1 to June 30, and the taxes are considered a lien against real property attaching on July 1. Taxes may be paid in four equal installments on the third Monday in August, and the first Mondays in October, January and March. Penalties are assessed if a taxpayer fails to pay an installment within ten days of the installment due date. After a twoyear waiting period, a tax deed is issued conveying the property to Humboldt County with a lien for back taxes. In 2005, the Nevada State Legislature passed Assembly Bill 489 which provides for a partial abatement of the ad valorem taxes levied on a qualified property. The abatement will limit the increase of a taxpayer s bill to 3% over the previous year s tax amount for a primary residence and some rental property. All other property will have a higher limit of 8%. 33

39 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Taxes on personal property are collected currently. Personal property declarations are mailed out annually and the tax is computed using percentages of taxable values established by the State Department of Taxation and the tax rates. The major classifications of personal property are commercial, agricultural and mobile homes. In Humboldt County, taxes on motor vehicles are collected by a state agency and remitted to Humboldt County based on statutory formulas as a part of combined taxes. Secured roll property taxes receivable reflect only those taxes receivable from the delinquent roll years. Delinquent taxes from all roll years prior to have been written off. No provision for uncollectible accounts has been established since management does not anticipate any material collection loss in respect to remaining balances. Personal property taxes receivable reflect only those taxes collected within 60 days of year-end. 5. Capital Assets: Capital assets, which include land, buildings, improvements, equipment, and infrastructure assets (e.g., roads, bridges, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by Humboldt County as assets with an initial, individual cost of more than $5,000 or more (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Significant projects in process are depreciated once the projects are placed in service. Prior to that time, they are reported as construction in progress. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of Humboldt County are depreciated using the straight-line method over the following estimated useful lives: Assets Years Buildings and improvements to buildings Improvements other than buildings Equipment and motor vehicles 5-15 Infrastructure

40 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 6. Net Proceeds of Mines: Net proceeds of mines are paid on an annual basis. For the year ended June 30, 2018, net proceeds of mines received on actual business from January through December 2017 are reflected in the financial statements. 7. Compensated Absences: It is Humboldt County s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. In proprietary funds, compensated absences are recorded when the liabilities are incurred. In governmental funds, the current portion is recorded as an expenditure. The entire amount is accounted for in the governmental column of the government-wide Statement of Net Position. The current portion of compensated absences is defined as those benefits accrued as a result of employees who have terminated employment by June 30. Agreements with the two employee associations provide for the payment of total accrued compensatory and vacation time in all cases. Accumulated sick leave benefits are payable to terminated employees who meet specific requirements set forth in the negotiated employee association contracts. 8. Long-term Obligations: In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. 9. Deferred Inflows/Outflows of Resources: In addition to assets, the statement of net position and/or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The County has two items that qualify for reporting in this category: deferred outflows for pension-related amounts and for other postemployment benefits-related amounts. These amounts are comprised of various balances, some of which are actuarily-determined and deferred and amortized over the expected remaining service lives of covered employees or five years, depending on the component being amortized. The others are comprised of the Count s contributions related to pension and other postemployment benefits made subsequent to the measurement date. These items are reported in the statements of net position. In addition to liabilities, the statement of net position and/or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County has three deferred inflow items. 35

41 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The first, unavailable revenue, arises only under a modified accrual basis of accounting and qualifies for reporting in this category. Accordingly, the item is reported only in the governmental funds balance sheet. The amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The unavailable revenues are from one source: property taxes. The second and third items are the collective deferred inflows related to net pension liability and other postemployment benefits liability arising under the economic resources measurement and accrual basis of accounting, which is reported in the statements of net position. 10. Interfund Activity: Interfund activity is reported either as a loan, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed at or near market rates, are treated as revenues and expenditures/expenses. Cost allocations for support services are revenue and expense in the fund financial statements and are eliminated in the government-wide Statement of Activities. 11. Net Position and Fund Balance: In government-wide and proprietary fund statements, equity is classified as net position and displayed in three components, if applicable: a. Net investment in capital assets consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net position consists of net position with constraints placed on their use, either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c. Unrestricted net position consists of the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted components of net position. Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The County s fund balance categories are as follows: a. Nonspendable fund balance amounts that are not in spendable form (such as inventory or prepaids) or are legally required to remain intact (such as notes receivable or principal of a permanent fund). 36

42 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) b. Restricted fund balance amounts constrained to specific purposes by their external providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. c. Committed fund balance amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority. Committed resources cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint. d. Assigned fund balance amounts a government intends to use for a specific purpose as expressed by the governing body or by an official or body to which the governing body delegates the authority. e. Unassigned fund balance represents the residual classifications for the general fund or deficit balances in other funds. The Board of Commissioners establishes (and modifies or rescinds) fund balance commitments by passage of a resolution. The County Administrator and Comptroller have been delegated authority to assign ending fund balance and to report any assigned funds to the Board of Commissioners at their next regular scheduled board meeting. It is the policy of the County to spend restricted fund balance first (unless legal requirements dictate otherwise) followed by committed, assigned, and unassigned fund balance. When both restricted and unrestricted resources are available for use, it is Humboldt County s policy to use restricted resources first, then unrestricted resources as they are needed. The Board also adopted a policy to maintain a minimum level of unrestricted fund balance for the General Fund at 10% of total general fund expenditures including other financing uses. By adopting this policy, the County wishes to avoid the need for service level reductions in the event of an economic downturn causing revenues to come in lower than budget. 12. Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 37

43 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 13. Comparative Data: Comparative data for the year ended June 30, 2017 has been extracted from the fiscal year 2017 financial statements. It has been provided to add comparability, but is not considered full disclosure of transactions for fiscal year Such information can only be obtained by referring to the audited financial statements for that year. 14. Stabilization Arrangement: The County has established a stabilization arrangement under NRS to stabilize operations and mitigate effects of natural disasters. Funds restricted in the Stabilization Fund must be used only if the total actual revenue falls short by 8% or more of the total anticipated revenue in the general fund for the fiscal year in which the County uses the funds. Additionally, the County Board of Commissioners must issue a formal declaration that a natural disaster exists before resources in the fund can be used to pay expenses incurred to mitigate the effects of the disaster. There are currently no provisions for additions to the stabilization fund. NOTE 2 STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY The County conformed to all significant statutory constraints on its financial administration during the year, with the following exceptions: Actual expenditures in the public works function of the General Fund exceeded appropriations by $526, an apparent violation of NRS Actual expenditures in the Paradise Sewer District Fund exceeded appropriations by $10,613, an apparent violation of NRS The Board of Commissioners of Humboldt County did not approve all minutes of their meetings within the latter of 45 days of the meeting or their next meeting, an apparent violation of NRS NOTE 3 CASH AND INVESTMENTS Deposits and investments The following schedule summarizes cash and investments for the County at June 30, 2018: Cash and Investment Balances Held By: Governmental Funds $ 44,258,187 Enterprise Funds 4,967,127 Fiduciary Funds 8,724,184 Total Cash and Investments $ 57,949,498 38

44 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 3 CASH AND INVESTMENTS (continued) Investments are carried at fair value. The following is a listing of those investments as of June 30, 2018: Investment Maturities Investment Type (in years) Fair Value Less than 1 1 to 5 6 to 10 U.S. Treasury Notes $ 1,508,712 $ 95,187 $ 1,413,525 $ - Government Agencies 869, , ,835 Asset Backed Fixed Income Securities 1,125,479-1,125,479 - Corporate Bonds 1,344, , ,823 - Mortgage Backed Securities 2,718, ,432 1,964,412 Money Market Mutual Funds 5,277,183 5,277, State of Nevada Local Government Investment Pool 5,113,214 5,113, Total Investments Total Cash (Carrying Amount) 17,957,432 39,992,066 10,984,049 34,566,350 4,421,136 5,191,414 2,552, ,302 Total Cash and Investments $ 57,949,498 $ 45,550,399 $ 9,612,550 $ 2,786,549 Investment Type Quality Ratings Average of Moody s and Standard & Poor s Fair Value AAA AA A Unrated Debt Securities U.S. Treasury Notes $ 1,508,712 $ - $1,508,712 $ - $ - Government Agencies 869, ,909-2,803 Asset Backed Fixed Income Securities 1,125, , ,416 Corporate Bonds 1,344,288-24,341 1,319,947 - Mortgage Backed Securities 2,718, ,223 1,865, ,700 Money Market Mutual Funds 5,277, ,277,183 State of Nevada Local Government Investment Pool 5,113, ,113,214 Total Investments 17,957,432 $1,011,286 $4,265,883 $1,319,947 $11,360,316 Total Cash (Carrying Amount) 39,992,066 Total Cash and Investments $ 57,949,498 The County is a voluntary participant in the State of Nevada Local Government Investment Pool (LGIP), which has regulatory oversight from the State of Nevada Board of Finance. The County s investments in the LGIP are equal to its original investment plus monthly allocations of interest income, and realized and unrealized gains and losses, which is the same as the value of the pool shares. The County s investment in the LGIP is reported at fair value. Wells Fargo determines the fair value of the investments on a monthly basis. 39

45 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 3 CASH AND INVESTMENTS (continued) Nevada Revised Statutes (NRS ) set forth acceptable investments for Nevada local governments. The County has not adopted a formal investment policy that would further limit its investment choices nor further limit its exposure to certain risks as set forth below. Interest Rate Risk Interest rate risk is the risk of possible reduction in the value of a security, especially a bond, resulting from a rise in interest rates. As noted above, the County does not have a formal investment policy that limits investment maturities to reduce its exposure to fair value losses arising from increasing interest rates beyond those specified in the Statute. Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligation and is a function of the credit quality ratings of investments. The LGIP is an unrated external investment pool and, as noted above, the County does not have a formal investment policy that specifies minimum acceptable credit ratings beyond what is specified in the Nevada Revised Statutes. Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the County s deposits may not be returned. The County s bank deposits are covered by Federal Deposit Insurance Corporation (FDIC) insurance and collateralized by the Office of the State Treasurer/Nevada Collateral Pool. External Investment Pool Humboldt County administers an external investment pool combining Humboldt County funds with voluntary investments from Humboldt County School District (Debt Service), Golconda Fire Protection District and Paradise Fire Protection District. There are no involuntary participants in the pool. The pool is not registered with the SEC and the Board of County Commissioners has overall responsibility for investment of funds including the external investment pool in accordance with NRS The Humboldt County Treasurer is delegated investment responsibilities. Monthly, Wells Fargo Bank determines the fair value of the pool s investments held by them. Each participant s share is equal to their original investment plus the monthly allocation of interest income. The County has not provided nor obtained any legally binding guarantees to support the value of shares. This is an unrated pool. Investment Type Fair Value/ Carrying Amount Principal Amount Number of Shares Interest Rate Maturity Dates Wells Fargo Savings $6,851,175 $6,851,175 Variable July 1,

46 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 3 CASH AND INVESTMENTS (continued) EXTERNAL INVESTMENT POOL CONDENSED FINANCIAL STATEMENTS STATEMENT OF NET POSITION JUNE 30, 2018 ASSETS: Wells Fargo Savings $ 6,851,175 NET POSITION HELD IN TRUST FOR POOL PARTICIPANTS: Net position consists of: Internal participant shares $ 2,211,500 External participant shares 4,639,675 Total Participant Shares Outstanding ($1.00 par) $ 6,851,175 STATEMENT OF CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2018 Net increase (decrease) in net position resulting from operations: Investment income (loss) $ 10,368 Net position, July 1 6,840,807 Net position, June 30 $ 6,851,175 NOTE 4 FAIR VALUE MEASUREMENTS The County categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of an asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The County has the following recurring fair value measurements as of June 30, 2018: Fair Value Measurements Using Investment Type Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs U.S. Treasury Notes $ 1,508,712 $ 1,508,712 $ - $ - Government Agencies 869, ,712 - Asset Backed Securities 1,125,479-1,125,479 - Corporate Bonds 1,344,288-1,344,288 - Mortgage Backed Securities 2,718,844-2,718,844 - Money Market Mutual Funds 5,277,183 5,277, State of Nevada Local Government Investment Pool 5,113,214 1,407,156 3,706,058 - Total Investments $17,957,432 $ 8,193,051 $ 9,764,381 $ - 41

47 NOTE 5 CAPITAL ASSETS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 Capital asset activity for the year ended June 30, 2018 was as follows: Beginning Balance Increases Decreases Ending Balance Governmental activities: Capital assets, not being depreciated: Land $ 2,382,383 $ - $ - $ 2,382,383 Construction in progress 1,322,298 3,309,994 (2,805,345) 1,826,947 Total capital assets, not being depreciated 3,704,681 3,309,994 (2,805,345) 4,209,330 Capital assets, being depreciated: Buildings 24,592,348 3,157,727-27,750,075 Improvements other than buildings 1,080, ,080,417 Infrastructure 66,702,288 33,770-66,736,058 Machinery and equipment 14,952,353 1,026,221 (16,782) 15,961,792 Total capital assets, being depreciated 107,327,406 4,217,718 (16,782) 111,528,342 Less accumulated depreciation for: Buildings (15,748,048) (717,318) - (16,465,366) Improvements other than buildings (776,865) (55,732) - (832,597) Infrastructure (30,719,434) (1,437,291) - (32,156,725) Machinery and equipment (11,042,438) (843,964) 16,782 (11,869,620) Total accumulated depreciation (58,286,785) (3,054,305) 16,782 (61,324,308) Total capital assets, being depreciated, net 49,040,621 1,163,413-50,204,034 Governmental activities capital assets, net $ 52,745,302 $ 4,473,407 $ (2,805,345) $ 54,413,364 Business-type activities: Capital assets, not being depreciated: Land $ 302,374 $ - $ - $ 302,374 Construction in progress 187,990 70, ,517 Total capital assets, not being depreciated 490,364 70, ,891 Capital asses, being depreciated: Buildings and improvements 77, ,612 Machinery and equipment 1,219,227 14,605-1,233,832 Infrastructure 4,757, ,757,948 Total capital assets, being depreciated 6,054,787 14,605-6,069,392 Less accumulated depreciation for: Buildings and improvements (74,466) (299) - (74,765) Machinery and equipment (1,046,034) (44,221) - (1,090,255) Infrastructure (1,709,700) (108,546) - (1,818,246) Total accumulated depreciation (2,830,200) (153,066) - (2,983,266) Total capital assets, being depreciated, net 3,224,587 (138,461) - 3,086,126 Business-type activities capital assets, net $ 3,714,951 $ (47,934) $ - $ 3,647,017 42

48 NOTE 5 CAPITAL ASSETS (continued) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 Depreciation expense was charged to functions/programs of Humboldt County as follows: Governmental activities: General government $ 119,178 Public safety 223,361 Judicial 11,979 Public works 1,755,653 Culture and recreation 182,198 Community support 761,936 Total depreciation expense governmental activities $ 3,054,305 Business-type activities: Television $ 31,095 Solid waste management 1,678 Water and sewer fees 120,293 Total depreciation expense business-type activities $ 157,390 NOTE 6 INTERFUND BALANCES AND TRANSFERS The composition of interfund balances as of June 30, 2018 is as follows: Due to/from other funds: Receivable Fund Payable Fund Amount Road Fund General Fund $ 34,896 6th Judicial District Fund 481 Nonmajor Governmental Funds 5,008 Winnemucca Events Complex Fund 1,943 Nonmajor Enterprise Funds 7,500 Humboldt Television Fund 1,535 Total Road Fund $ 51,363 General Fund Winnemucca Events Complex Fund $ 39,087 Total $ 90,450 Interfund receivables and payables include charges incurred by one fund for the benefit of another fund. An example of these types of charges is motor vehicle fuel. Bulk fuel is purchased by the road department for use by other funds. These charges are then allocated to the appropriate fund. Other examples include postage and copy charges. 43

49 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 6 INTERFUND BALANCES AND TRANSFERS (continued) Interfund transfers for the year ended June 30, 2018 are as follows: Transfers From: Transfers To: Amount 6th Judicial District General Fund $ 13,000 Nonmajor Governmental 120, ,000 Road Fund General Fund 10,000 Indigent Fund General Fund 500 Winnemucca Events Complex Fund General Fund 2,501 In Lieu of Tax Road Fund 1,000,000 Nonmajor Governmental 1,000,000 2,000,000 Nonmajor Governmental Funds General Fund 8,000 Solid Waste Fund General Fund 300 TV Fund General Fund 667 Nonmajor Governmental Fund 100, ,667 McDermitt Sewer District Fund General Fund 210 Nonmajor Enterprise Funds General Fund 310 Total Interfund Transfers $2,255,488 Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to spend them, (2) use of revenues collected in the In-Lieu-of Tax Fund to finance various programs accounted for in other funds in accordance with budgetary authorization and (3) to provide funding for the internally-reported compensated absences and unemployment compensation funds. 44

50 NOTE 7 COMMITMENTS NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 As of June 30, 2018, the County had the following commitments outstanding: Project Description Commitment Authorization Project Expended/ Retainage Balance at June 30, 2018 CSI Telecommunications Project $ 1,638,998 $ 1,219,338 $ 419,660 LSA Associates, Inc. 338,492 89, ,244 Devnet 591, , ,758 Tyler Technologies 265, ,373 47,049 Sierra Nevada Construction 863, , ,078 Other Projects 227, , ,579 NOTE 8 LONG TERM DEBT Totals $ 3,925,695 $ 2,500,327 $ 1,425,368 Capital leases. Humboldt County has entered into a lease agreement as lessee for financing the acquisition of 10 vehicles. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of its future minimum lease payments as of the inception date. The assets acquired through the capital lease are as follows at June 30, 2018: Governmental Activities Machinery and equipment $ 454,018 Less: Accumulated depreciation (45,402) Total $ 408,616 Amortization of leased equipment under capital assets is included with depreciation expense. 45

51 NOTE 8 LONG TERM DEBT (continued) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2018 were as follows: Year Ending June 30, Governmental Activities 2019 $ 109, , , , ,655 Total minimum lease payments 445,231 Less: amount representing interest (24,840) Present value of minimum lease payments $ 420,391 The liability for compensated absences is included in the noncurrent liabilities on the government-wide Statement of Net Position. For the governmental activities, compensated absences are generally liquidated by a combination of the major and nonmajor governmental funds with the majority liquidated from the General Fund. Changes in long-term liabilities. Long-term liability activity for the year ended June 30, 2018 was as follows: Governmental activities: Beginning Balance Additions Reductions Ending Balance Due Within One Year Compensated absences $ 738,560 $1,008,935 $ 995,825 $ 751,670 $ 751,670 Capital leases - 454,018 33, ,391 98,885 Governmental activities Long-term liabilities $ 738,560 $1,462,953 $1,029,452 $1,172,061 $ 850,555 Business-type activities: Compensated absences $ - $ 1,364 $ 746 $ 618 $ 618 Sewer Revenue Bond Series 2008 $ 233,442 $ - $ 4,191 $ 229,251 $ 4,376 Business-type activities Long-term liabilities $ 233,442 $ 1,364 $ 4,937 $ 229,869 $ 4,994 46

52 NOTE 8 LONG TERM DEBT (continued) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 McDermitt General Improvement District authorized a Series 2008 Revenue Bond on November 6, 2008 in the maximum aggregate principal sum of $270,000 for the purpose of improving and equipping a sanitary sewer project. The interest rate is 4.375% per annum, and payments are due on a semi-annual basis. Final payment will be due November 6, As of June 30, 2018, annual requirements to amortize the outstanding bond payable debt to maturity are projected to be as follows: Year Ended Business-Type Activities Revenue Bonds June 30, Principal Interest Total ,376 9,983 14, ,570 9,789 14, ,772 9,587 14, ,983 9,376 14, ,203 9,156 14, ,679 42,114 71, ,849 34,944 71, ,752 26,041 71, ,805 14,988 71, ,262 2,539 38,801 TOTAL $ 229,251 $ 168,517 $ 397,768 NOTE 9 RISK MANAGEMENT The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters, as are all entities. The County has joined together with similar public agencies (cities, counties and special districts) throughout the State of Nevada to create a pool under the Nevada Interlocal Cooperation Act. The Nevada Public Agency Insurance Pool (Pool) is a public entity risk pool currently operating as a common risk management and insurance program for its members. The County pays an annual premium and specific deductibles, as necessary, to the Pool for its general insurance coverage. The pool is considered a self-sustaining risk pool that will provide liability coverage for its members up to $10,000,000 per event and a $10,000,000 general aggregate per member. Property, crime and equipment breakdown coverage is provided to its members up to $300,000,000 per loss with various sub-limits established for earthquake, flood, equipment breakdown, and money and securities. The County has also joined together with similar public agencies effective April 1, 1996, to create a second pool under the Nevada Interlocal Cooperation Act. The Public Agency Compensation Trust (PACT) is an intergovernmental self-insurance association for workers compensation insurance. 47

53 NOTE 9 RISK MANAGEMENT (continued) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 The County pays premiums based upon payroll costs to the PACT. The PACT is considered a selfsustaining pool that will provide coverage based on established statutory limits. The County continues to carry commercial insurance for other risks of loss, including specific risks of loss not covered by the Pool (bonding and boiler coverage) and employee health and accident insurance. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. NOTE 10 PENSION PROGRAM For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of PERS and additions to/deductions from the plan s fiduciary net position have been determined on the same basis as they are reported by PERS. For this purpose, benefit payments including refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Plan Description. The County participates in a cost sharing multiple employer defined benefit pension plan administered by the Public Employees Retirement System of the State of Nevada (PERS). All fulltime and certain part-time employees of the County are covered by PERS. The Public Employees Retirement System of the State of Nevada issues a publicly available financial report that includes financial statements and required supplementary information for PERS. That report may be obtained on the PERS website at under Quick Links Publications. Benefits Provided. PERS provides retirement benefits, disability benefits, and survivor benefits, including annual cost of living adjustments, to plan members and their beneficiaries. Benefits, as required by Nevada Revised Statute 286, are determined by the number of years of accredited service at time of retirement and the member s highest average compensation in any 36 consecutive months with special provisions for members entering the System on or after January 1, 2010 and July 1, Monthly benefit allowances for members are computed as 2.5% of average compensation for each accredited year of service prior to July 1, For service earned on and after July 1, 2001, this multiplier is 2.67% of average compensation. For members entering the System on or after January 1, 2010, there is a 2.5% service time factor and for regular members entering the System on or after July 1, 2015, there is a 2.25% factor. The System offers several alternatives to the unmodified service retirement allowance which, in general, allow the retired employee to accept a reduced service retirement allowance payable monthly during their lifetime and various optional monthly payments to a named beneficiary after their death. Post-retirement increases are provided by authority of NRS Regular members entering the System prior to January 1, 2010, are eligible for retirement at age 65 with five years of service, at age 60 with ten years of service, or at any age with thirty years of service. Regular members entering the System on or after January 1, 2010, are eligible for retirement at age 65 with five years of service, or age 62 with ten years of service, or any age with thirty years of service. Regular members entering the System on or after July 1, 2015 are eligible for retirement at age 65 with 48

54 NOTE 10 PENSION PROGRAM (continued) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 five years of service, age 62 with ten years of service, age 55 with thirty years of service, or any age with thirty-three and one-third years of service. Police/Fire members are eligible for retirement at age 65 with five years of service, at age 55 with ten years of service, at age 50 with twenty years of service, or at any age with twenty-five years of service. Police/Fire members entering the System on or after January 1, 2010, are eligible for retirement at age 65 with five years of service, or age 60 with ten years of service, or age 50 with twenty years of service, or at any age with thirty years of service. Police/Fire members entering the System on or after July 1, 2015, are eligible for retirement at age 65 with five years of service, at age 60 with ten years of service, at age 50 with twenty years of service and at any age with 33 1/3 years of service. Only service performed in a position as a police officer or firefighter may be counted towards eligibility for retirement as Police/Fire accredited service. The normal ceiling limitation on monthly benefit allowances is 75% of average compensation. However, a member who has an effective date of membership before July 1, 1985, is entitled to a benefit of up to 90% of average compensation. Regular members become fully vested as to benefits upon completion of five years of service. Contributions. The authority for establishing and amending the obligation to make contributions, and member contribution rates, is set by statute. New hires, in agencies which did not elect the Employer-Pay Contribution (EPC) plan prior to July 1, 1983, have the option of selecting one of two contribution plans. One plan provides for matching employee and employer contributions, while the other plan provides for employer-pay contributions only. Under the matching Employee/Employer Contribution plan a member may, upon termination of service for which contribution is required, withdraw employee contributions which have been credited to their account. All membership rights and active service credit in PERS are canceled upon withdrawal of contributions from the member s account. If EPC was elected, the member cannot convert to the Employee/Employer Contribution plan. The County is required to contribute all amounts due for plan members under the Employer-Pay Contribution plan. The contribution requirements of the County are established by Chapter 286 of the Nevada Revised Statutes. The funding mechanism may only be amended through legislation. PERS basic funding policy provides for periodic contributions at a level pattern of cost as a percentage of salary throughout an employee s working lifetime in order to accumulate sufficient assets to pay benefits when due. PERS receives an actuarial valuation on an annual basis indicating the contribution rates required to fund PERS on an actuarial reserve basis. Contributions actually made are in accordance with the required rates established by the Nevada Legislature. These statutory rates are increased/decreased pursuit to NRS and For the fiscal year ended June 30, 2018, the Statutory Employer/Employee matching rate was 14.50% for Regular and 20.75% for Police/Fire. The Employer-Pay contribution rate was 28.00% for Regular and 40.50% for Police/Fire. 49

55 NOTE 10 PENSION PROGRAM (continued) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 County contributions of $1,660,739 were paid during the fiscal year ended June 30, 2018 and were recognized as additions to the plan s fiduciary net position, reducing the County s proportionate share of net pension liability for the fiscal year ended June 30, Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. At June 30, 2018, the County reported a liability of $25,178,470 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The County s proportion of the net pension liability was based on the County s total contributions due on wages relative to the total contributions for all employers for the period ended June 30, The County s proportion was %, as of June 30, 2017, which was a decrease of 0.009% from its proportion measured as of June 30, For the year ended June 30, 2018, the County recognized pension expense of $888,932. At June 30, 2018, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: $1,660,739 reported as deferred outflows related to pensions resulting from County contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30, 2019 $ (2,867,697) 2020 (1,644,395) 2021 (1,219,797) 2022 (1,560,188) 2023 (992,338) Thereafter (232,388) 50 Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ - $ 4,842,681 Changes of assumptions 1,670,351 - Net difference between projected and actual earnings on pension plan investments 2,024,113 1,913,442 Changes in proportion and differences between actual and proportionate share of contributions 96,310 5,551,454 County contributions subsequent to the measurement date 1,660,739 - Total $ 5,451,513 $ 12,307,577

56 NOTE 10 PENSION PROGRAM (continued) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 Actuarial assumptions. The total pension liability in the June 30, 2017 actuarial valuation was determined using the following assumptions, applied to all periods including the measurement: Inflation Rate 2.75% Payroll Growth 5.00%, including inflation Projected Salary Increases Regular: 4.25% to 9.15%, depending on service Police/Fire: 4.55% to 13.9%, depending on service Rates include inflation and productivity increases Investment Rate of Return 7.50% per year Productivity Pay Increase 0.50% Consumer Price Index 2.75% The actuarial assumptions used in the June 30, 2017 valuation were based on the results of the experience review completed in Mortality rates for non-disabled male regular members were based on the RP Combined Healthy Mortality Table projected to 2013 with Scale AA. Mortality rates for nondisabled female regular members were based on the RP-2000 Combined Healthy Mortality Table, projected to 2013 with Scale AA, set back one year. Mortality rates for all non-disabled police/fire members were based on the RP-2000 Combined Healthy Mortality Table projected to 2013 with Scale AA, set forward one year. The mortality table used in the actuarial valuation to project mortality rates for all disabled regular members and all disabled police/fire members is the RP-2000 Disabled Retiree Mortality Table projected to 2013 with Scale AA, set forward three years. PERS policies which determine the investment portfolio target asset allocation are established by the Board. The asset allocation is reviewed annually and is designed to meet the future risk and return needs of the System. The following was the Board-adopted policy target asset allocation as of June 30, 2017: Asset Class Target Allocation Long-Term Geometric Expected Real Rate of Return* Domestic equity 42% 5.50% International equity 18% 5.75% Domestic fixed income 30% 0.25% Private markets 10% 6.80% Total 100% *As of June 30, 2017, PERS long-term inflation assumption was 2.75%. 51

57 NOTE 10 PENSION PROGRAM (continued) NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 Discount rate. The discount rate used to measure the total pension liability was 7.50% as of June 30, The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, the pension plan s fiduciary net position at June 30, 2017, was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability as of June 30, Pension liability sensitivity. The following presents the County s proportionate share of the net pension liability, calculated using the discount rate of 7.50%, as well as what the County s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%) than the current discount rate: 1% Decrease (6.50%) Current Rate (7.50%) 1% Increase (8.50%) County s proportionate share of the net pension liability $38,062,818 $25,178,470 $14,477,819 Pension plan fiduciary net position. Detailed information about the pension plan s fiduciary net position is available in a separately-issued PERS Comprehensive Annual Financial Report (CAFR), available on the PERS website NOTE 11 LANDFILL CLOSURE AND POSTCLOSURE COSTS State and federal laws and regulations require the government to place a final cover on the Humboldt County Regional Landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site for 30 years after closure. During the year ended June 30, 1999, the County Commissioners approved the County s purchase of insurance to cover the costs of closure and post-closure of the landfill. The County is obligated under the insurance policy to an annual premium of $61,646 over 15 years, with the first payment due July 1, The County expects to close the landfill in the year At June 30, 2018, financial assurance relative to costs of closure and post-closure of the landfill was fulfilled through insurance coverage. NOTE 12 - CONTINGENCIES There are legal actions and claims pending against Humboldt County. The financial impact of these actions is not determinable at June 30, The effect of any resulting uninsured liability on the financial position or results of operations of the County is unknown. 52

58 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 13 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Descriptions. The County administers a single-employer defined benefit healthcare plan, Humboldt County Health Insurance Plan (HCHIP). Additionally, the County participates in the State of Nevada s Public Employees' Benefits Plan (PEBP), an agent multiple-employer defined benefit postemployment healthcare plan. Each plan provides medical, vision, dental, and life insurance benefits to eligible retired County employees and beneficiaries. No assets are accumulated in a trust that meets all of the criteria in GASB Statement No. 75, paragraph 4. Benefits Provided. Benefit provisions for the HCHIP are established pursuant to NRS and amended through negotiations between the County and the respective associations. NRS assigns the authority to establish benefit provisions to the Board of County Commissioners. The plan provides healthcare insurance for eligible retirees and their beneficiaries through the County s group health insurance plan, which covers both active and retired members. Under NRS eligible retirees are able to participate in the plan with blended rates, thereby benefitting from an implicit subsidy. Retirees are required to pay 100% of their premiums under the plan. To be eligible for coverage as a retiree, the employee must have qualified for and started his or her retirement benefits from Nevada Public Employee Retirement System (PERS), must have been eligible for benefits while employed by the County, and must have retired from the County at the time of their election to participate. As of June 30, 2018, 5 retirees had medical coverage and 8 retirees had life insurance only through this plan. The HCHIP does not issue a publicly available financial report. Benefit provisions for the PEBP are administered by the State of Nevada. NRS assigns the authority to establish and amend benefit provisions to the PEBP nine-member board of trustees. County employees who met the eligibility requirements effective September 1, 2008 for retirement within the Public Employee Retirement System had the option upon retirement to enroll in coverage under the EBP. NRS sunsetted the option to join PEBP for County employees who retired after November 29, Local governments are required to pay the same portion of cost of coverage for those persons joining PEBP that the State of Nevada pays for those persons retired from state service who have continued to participate in the plan. As of June 30, 2018, 57 County retirees were utilizing this benefit. The PEBP issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to Public Employee s Benefits Program, 901 S. Stewart Street, Suite 1001, Carson City, NV, 89701, by calling (775) or (800) , or by accessing the website at Employees Covered by Benefit Terms. As of the July 1, 2016 valuation date, the following employees were covered by benefit terms: HCHIP PEBP Active members currently receiving benefit payments 184 N/A no active Active members entitled to but not currently receiving benefit payments 4 employees in this plan Inactive members currently receiving benefit payments Total

59 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 13 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued) Contributions. For HCHIP, contribution requirements of the plan members and the County are established and may be amended through negotiations between the County and the associations. Retirees pay 100% of the pay-as-you-go premiums based on a blended rate that blends active participants and retirees. The County s contribution requirements for retirees relate to the implicit subsidy that results from using the blended rates and is determined in actuarial studies contracted for by the County. The implicit subsidy as determined by the actuary for fiscal year 2018 is $32,048. For the PEBP, NRS establishes the subsidies to be contributed toward the premium costs of the eligible retired County employees. Plan members receiving benefits have their monthly contribution deducted from their pension checks based on the health plan chosen by the retiree as reduced by the amount of the subsidy therefore, their contributions are not available. Subsidy rates vary with the type of plan and coverage elected by the retiree. The contribution requirements of plan members and the County are established and amended by the PEBP board of trustees. As a participating employer, the County is billed for the subsidy on a monthly basis and is legally required under NRS to provide for it. For fiscal year 2018, the County contributed $134,438 to the plan for current premiums. The County did not prefund any future benefits. Total OPEB Liability. The County s total OPEB liability of $3,643,674 was measured as of June 30, 2017, and was determined by actuarial valuations of both plans as of that date. Actuarial Assumptions. The total OPEB liability in the June 30, 2017 actuarial valuations was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018: HCHIP PEBP Inflation 2.75% per year 2.75% per year Salary Increase 4.0% per year N/A no active employees in this plan Funding Method Entry Age Normal Cost, closed group, level percent of pay Entry Age Normal Cost, closed group, level percent of pay Healthcare Cost Trend Rates: County Medical Premium and Pre- Medicare PEBP Subsidy Increase Medicare PEBP Subsidy Increase Effective July Actual Actual % 4.50% % 4.50% % 4.50% % 4.50% % 4.50% 2023 & Later 5.00% 4.50% 54

60 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 13 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued) Discount rate. A discount rate of 3.13% was applied in the measurement of the total OPEB liability. The discount rate is based on the index rate for 20-year high grade municipal bond rate. Mortality rates were based on the most recently published report of the Nevada Public Employees Retirement System, dated June 30, 2015, except for a different basis used to project future mortality improvements. These rates were derived from the RP-2000 Combined Healthy Table for males and the same set back one year for females. Adjustments for mortality improvements were made by applying the MacLeod Watts Scale The actuarial assumptions used in the June 30, 2017 valuations were based on the results of actuarial experience studies for the period July 1, 2016 January 1, Changes in the Total OPEB Liability. Changes in the total OPEB liability were as follows: HCHIP PEBP Total OPEB Balance at June 30, 2017 $1,523,462 $2,199,690 $3,723,152 Changes for the year: Service cost 166, ,553 Interest 44,967 57, ,155 Changes of assumptions (75,343) (116,913) (192,256) Benefit payments (24,287) (131,643) (155,930) Net changes 111,890 (191,368) (79,478) Balance at June 30, 2018 $1,635,352 $2,008,322 $3,643,674 Changes of assumptions and other inputs reflect a change in the discount rate from 4% in 2017 to 3.13% in Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability of the County, as well as what the County s total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.13%) or 1-percentage-point higher (4.13%) than the current discount rate. 1% Decrease (2.13%) Current Rate (3.13%) 1% Increase (4.13%) HCHIP $ 1,808,947 $ 1,635,352 $ 1,482,473 PEBP 2,284,298 2,008,322 1,784,246 Total OPEB Liability $ 4,093,245 $ 3,643,674 $ 3,266,719 55

61 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 13 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued) Sensitivity of the total OPEB liability to changes in the healthcare trend rates. The following presents the total OPEB liability of the County, as well as what the County s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (6% decreasing to 4%) or 1- percentage-point higher (8% decreasing to 6%) than the current healthcare cost trend rates. 1% Decrease (6% decreasing to 4%) Healthcare Cost Trend Rates (7% decreasing to 5%) 1% Increase (8% decreasing to 6%) HCHIP $ 1,410,651 $ 1,635,352 $ 1,935,127 PEBP 1,775,925 2,008,322 2,288,905 Total OPEB Liability $ 3,186,576 $ 3,643,674 $ 4,224,032 OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to OPEB. For the year ended June 30, 2018, the HCHIP recognized OPEB expense of $204,505 and the PEBP plan recognized a negative OPEB expense of $59,725 for a total OPEB expense of $144,780. At June 30, 2018, the County reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources HCHIP Changes in Assumptions $ - $ 68,328 Contributions Made Subsequent to the Measurement Date 32,048 - Total HCHIP $ 32,048 $ 68,328 PEBP Changes in Assumptions $ - $ - Contributions Made Subsequent to the Measurement Date 134,438 - Total PEBP $ 134,438 $ - Total Combined Changes in Assumptions $ - $ 68,328 Contributions Made Subsequent to the Measurement Date 166,486 - Total Combined $ 166,486 $ 68,328 56

62 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 13 POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (continued) The County will recognize the Contributions Made Subsequent to the Measurement Date in the next fiscal year. Amounts reported as deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended June 30, 2019 $ (7,015) 2020 (7,015) 2021 (7,015) 2022 (7,015) 2023 (7,015) Thereafter (33,253) 57

63 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 14 GOVERNMENTAL FUND BALANCES Governmental fund balances are classified as nonspendable, restricted, committed, assigned and/or unassigned based primarily on the extent to which the County is bound to observe constraints imposed on the use of the resources of the fund. A summary of governmental fund balances at June 30, 2018 is shown on the following pages. Fund Balances Nonspendable General Fund Indigent Fund Major Governmental Funds Road Fund Regional Transportation Fund 6 th Judicial District Fund Notes receivable $ 886 $ - $ - $ - $ - Restricted Unemployment claims 157, County and city road projects ,317,555 - Technology enhancements ,344 Indigent medical Government stabilization Purchase of capital assets Judicial support Check restitution Assessor's technology Local agricultural education Drug court enhancement Fire protection Library Committed Compensated absences 95, Road repairs and maintenance , th judicial court ,531,234 Winnemucca events center complex Indigent services - 970, Library Capital building projects Assigned Excess road fund expenditures Unassigned 15,080, Total fund balances $15,334,256 $ 970,778 $ 827,884 $ 2,317,555 $ 6,533,578 58

64 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 Indigent Medical Fund Major Governmental Funds Winnemucca Events Complex In Lieu-of- Fund Tax Fund Building Reserve Fund Other Governmental Funds Total Governmental Funds $ - $ - $ - $ - $ - $ , ,317, ,344 1,068, ,068, ,050,843 1,050, ,344,454 2,344, , , ,223 1, ,109,771 1,109, ,365,883 1,365, , , , , , , , , , , ,531,234-1,251, ,251, , ,290,473 2,290, ,457,048-1,457, ,713, ,713, ,080,034 $ 1,068,527 $ 1,251,639 $ 4,713,053 $ 1,457,048 $ 9,643,307 $ 44,117,625 59

65 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 15 ACCOUNTING CHANGES AND ACCOUNTING STANDARDS Correction of error. An error resulting in an understatement of previously reported deferred revenue related to net insurance proceeds in the Winnemucca Events Complex Fund was discovered during the current year. Accordingly, an adjustment of $328,799 was made to correct the balance and decrease the beginning fund balance in the governmental funds statement of revenues, expenditures, and changes in fund balances and the beginning net position of the governmental activities in the statement of activities. Accounting standards. As of July 1, 2017, the County adopted GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (GASBS 75), which improves accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial support of OPEB that is provided by other entities. As of July 1, 2017, the County also adopted GASB Statement No. 82, Pension Issues an Amendment of GASB Statements No. 67, No. 68, and No. 73 (GASBS 82). The implementation of this standard is to address issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The statement changed the classification of employer-paid member contributions from employer contributions to employee contributions and resulted in a prior period adjustment to restate deferred outflows of resources related to pensions. Additionally, the County has determined that due to a reallocation of salary and benefit charges to the districts it began reporting as blended component units during the prior fiscal year, pension liability and related deferred outflows and inflows in those funds will likely be material in coming years, and related adjustments have been recorded to reflect the adjusted beginning balances and net positions of those funds. Net position as of July 1, 2017 has been restated as follows for the correction of the error and for implementation of GASBS No. 75 and 82: Business- Governmental Activities Type Activities Total Government Net position previously reported at June 30, 2017 $ 66,506,615 $8,190,884 $74,697,499 Correction of error in Winnemucca Events Complex Fund (328,799) - (328,799) Prior period adjustment Implementation of GASBS 75: Total OPEB liability (2,129,211) 27,129 (2,102,082) Deferred outflows County contributions made during FY17 155, ,930 60

66 NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2018 NOTE 16 ACCOUNTING CHANGES AND ACCOUNTING STANDARDS (continued) Governmental Activities Business- Type Activities Total Government Prior period adjustment Implementation of GASBS 82 and re-allocation of beginning pension-related balances: Adjustment to deferred outflows of resources representing plan member contributions $ (1,644,593) $ (16,847) $ (1,661,440) Adjustment to deferred outflows and inflows of resources due to changes in employer proportions (790,337) (28,017) (818,354) Total prior period adjustment (4,737,010) (17,734) (4,754,744) Net position at June 30, 2017, restated $ 61,769,605 $8,173,150 $ 69,942,755 61

67 Required Supplementary Information General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - By Function and Department For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget REVENUES Taxes $ 3,486,748 $ 3,583,748 $ 6,507,733 $ 2,923,985 Licenses and permits 1,000,000 1,000,000 1,098,334 98,334 Intergovernmental revenues 6,800,385 6,800,385 8,481,335 1,680,950 Charges for services 326, , , ,105 Fines and forfeits 600, , , ,802 Miscellaneous 191, , , ,556 Total Revenues 12,404,133 12,501,133 17,865,865 5,364,732 EXPENDITURES BY FUNCTION AND DEPARTMENT Current: General Government: Commission 294, , ,897 (22,527) Administrator 366, , ,823 6,910 Elections 160, , ,954 2,996 Comptroller 360, , ,895 9,166 Assessor 698, , ,560 67,886 Treasurer 299, , ,229 18,731 Clerk 487, , ,004 44,662 Recorder 341, , ,228 27,142 Computer systems 612, , ,517 (48,853) Planning 116, ,820 84,900 31,920 Buildings and grounds 1,557,942 1,557,942 1,388, ,491 Communications 381, , ,775 15,755 Personnel 41,500 41,500 35,056 6,444 Miscellaneous 1,177,000 1,177, , ,735 Total General Government Function 6,897,012 6,929,012 6,205, ,458 Judicial: Justice Court 701, , ,002 79,758 District Attorney 1,654,508 1,654,508 1,513, ,046 Child Support 466, , ,253 42,723 Public Defender 264, , ,364 1,676 Alternate Public Defender 129, , ,867 1,833 Total Judicial Function 3,216,984 3,216,984 2,949, ,036 (continued) 62

68 Required Supplementary Information General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - By Function and Department For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget Public Safety: Sheriff $ 3,821,630 $ 3,821,630 $ 3,817,720 $ 3,910 Detention 2,893,220 2,893,220 2,455, ,635 Dispatch 1,202,850 1,202,850 1,045, ,878 Building Official 368, , , ,447 Task Force 149, , ,021 1,319 LEPC 60,000 60, ,931 Total Public Safety Function 8,495,350 8,495,350 7,731, ,120 Public Works 22,100 22,100 22,626 (526) Health: Health 158, , ,090 (3,936) Mosquito control 150, , ,639 7,361 Total Health Function 308, , ,729 3,425 Community Support 1,042,000 1,042,000 1,031,302 10,698 Intergovernmental Expenditures 606, , ,370 94,630 Debt service ,772 (26,772) Total Expenditures 20,587,600 20,684,600 18,848,531 1,836,069 Excess (deficiency) of revenues over (under) expenditures (8,183,467) (8,183,467) (982,666) 7,200,801 OTHER FINANCING SOURCES (USES) Proceeds from debt , ,200 Transfers out (71,200) (71,200) (67,491) 3,709 Contingency (350,000) (350,000) - 350,000 Total other financing sources and uses (421,200) (421,200) 308, ,909 Net change in fund balance (8,604,667) (8,604,667) (673,957) 7,930,710 Fund balance - beginning 9,713,461 9,713,461 15,754,877 6,041,416 Fund balance - ending $ 1,108,794 $ 1,108,794 $ 15,080,920 $ 13,972,126 The notes to the required supplementary information are an integral part of this statement. 63

69 Required Supplementary Information Indigent Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Variance to Budget Final Budget Actual Final Budget REVENUES Taxes: Property taxes $ 312,492 $ 312,492 $ 529,296 $ 216,804 Intergovernmental Revenue: Welfare set aside ,517 17,517 Emergency solution grant - 9,966 9,966 - Total Intergovernmental Revenue - 9,966 27,483 17,517 Miscellaneous 1,000 1,000 1, Total Revenues 313, , , ,208 EXPENDITURES Welfare Function: Institutional care 64,632 64,632 74,846 (10,214) Old age assistance ,000 (12,000) General assistance: Salaries and wages 49,180 49,180 49,263 (83) Employee benefits 28,040 28,040 26,338 1,702 Services and supplies 92, ,958 72,833 30,125 Total Welfare Function 234, , ,280 9,530 Intergovernmental Expenditure Function: Services and supplies 200, , ,671 (10,671) Total Expenditures 434, , ,951 (1,141) Excess (deficiency) of revenues over (under) expenditures (121,352) (121,352) 112, ,067 OTHER FINANCING SOURCES (USES) Transfers - out (500) (500) (500) - Net change in fund balance (121,852) (121,852) 112, ,067 Fund balance - beginning 694, , , ,494 Fund balance - ending $ 572,217 $ 572,217 $ 970,778 $ 398,561 The notes to the required supplementary information are an integral part of this statement. 64

70 Required Supplementary Information Road Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget REVENUES Intergovernmental Revenues: Federal grants $ 2,000 $ 2,000 $ 157,233 $ 155,233 Consolidated tax 381, , ,211 69,567 Motor vehicle fuel taxes 1.25 cents 455, , ,238 34,319 Motor vehicle fuel taxes 1.75 cents 190, , ,986 24,661 Motor vehicle fuel taxes 2.35 cents 722, , ,015 54,391 Total Intergovernmental Revenues 1,752,512 1,752,512 2,090, ,171 Charges for Services: Fuel sales reimbursements 229, , ,467 (46,533) Repair reimbursements 81,700 81,700 53,541 (28,159) Total Charges for Services 310, , ,008 (74,692) Miscellaneous 5,000 5,000 75,531 70,531 Total Revenues 2,068,212 2,068,212 2,402, ,010 EXPENDITURES Public Works Function: Highways and Street: Salaries and wages 1,150,660 1,150, , ,401 Employee benefits 607, , , ,988 Services and supplies 1,969,800 1,969,800 1,482, ,368 Capital outlay 110, , ,009 (51,009) Total Public Works Function 3,837,800 3,837,800 3,132, ,748 Intergovernmental Expenditure Function: Services and supplies ,643 (77,643) Debt service function: Principal ,078 (10,078) Interest (653) Total Debt service function ,731 (10,731) Total Expenditures 3,837,800 3,837,800 3,220, ,374 Excess (deficiency) of revenues over (under) expenditures (1,769,588) (1,769,588) (818,204) 951,384 65

71 Required Supplementary Information Road Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget (continued) OTHER FINANCING SOURCES (USES) Proceeds from debt $ - $ - $ 77,818 $ 77,818 Transfers - in 1,000,000 1,000,000 1,000,000 - Transfers - out (10,000) (10,000) (10,000) - Total Other Financing Sources (Uses) 990, ,000 1,067,818 77,818 Net change in fund balance (779,588) (779,588) 249,614 1,029,202 Fund balance - beginning 1,119,047 1,119, ,270 (540,777) Fund balance - ending $ 339,459 $ 339,459 $ 827,884 $ 488,425 The notes to the required supplementary information are an integral part of this statement. 66

72 Required Supplementary Information Regional Transportation Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget REVENUES Intergovernmental Revenue: Gasoline taxes $ 1,230,798 $ 1,230,798 $ 1,397,509 $ 166,711 Miscellaneous 1,000 1,000 6,832 5,832 Total Revenues 1,231,798 1,231,798 1,404, ,543 EXPENDITURES Public Works Function: Highways and Street: Capital outlay 1,650,000 1,650,000 1,163, ,294 Excess (deficiency) of revenues over (under) expenditures (418,202) (418,202) 240, ,837 Fund balance - beginning 1,426,857 1,426,857 2,076, ,063 Fund balance - ending $ 1,008,655 $ 1,008,655 $ 2,317,555 $ 1,308,900 The notes to the required supplementary information are an integral part of this statement. 67

73 Required Supplementary Information 6th Judicial District Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget REVENUES Taxes $ 1,616,240 $ 1,616,240 $ 2,737,701 $ 1,121,461 Intergovernmental Revenue: Grants: OJJDP formula grant ,174 26,174 Life is good grant Room and board ,230 21,230 Project magic grant ,822 22,822 Skills to pay bills ,000 30,000 Total Intergovernmental Revenues , ,412 Charges for Services ,530 21,530 Fines and Forfeits 15,000 15,000 48,390 33,390 Miscellaneous - - 2,406 2,406 Total Revenues 1,631,240 1,631,240 2,910,439 1,279,199 EXPENDITURES Judicial Function: District Court: Salaries and wages 466, , ,579 47,461 Employee benefits 228, , ,389 34,721 Services and supplies 759, , , ,604 Capital outlay 180, , ,000 Total Judicial Function 1,633,652 1,633,652 1,194, ,786 Public Safety Function: Juvenile Probation: Salaries and wages 904, , ,747 65,943 Employee benefits 469, , ,541 68,019 Services and supplies 414, , , ,629 Total Public Safety Function 1,788,405 1,788,405 1,470, ,591 (continued) 68

74 Required Supplementary Information 6th Judicial District Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget Intergovernmental Expenditure Function: Services and supplies $ 60,000 $ 60,000 $ 60,072 $ (72) Total Expenditures 3,482,057 3,482,057 2,725, ,305 Excess (deficiency) of revenues over expenditures (1,850,817) (1,850,817) 184,687 2,035,504 OTHER FINANCING SOURCES (USES) Transfers out (113,000) (133,000) (133,000) - Net change in fund balance (1,963,817) (1,983,817) 51,687 2,035,504 Fund balance - beginning 5,278,427 5,298,427 6,481,891 1,183,464 Fund balance - ending $ 3,314,610 $ 3,314,610 $ 6,533,578 $ 3,218,968 The notes to the required supplementary information are an integral part of this statement. 69

75 Required Supplementary Information Indigent Medical Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget REVENUES Taxes $ 248,651 $ 248,651 $ 421,168 $ 172,517 Miscellaneous 1,200 1,200 3,557 2,357 Total Revenues 249, , , ,874 EXPENDITURES Welfare Function: Services and supplies 707, , , ,606 Intergovernmental Expenditure Function: Services and supplies 155, , ,446 14,554 Total Expenditures 862, , , ,160 Excess (deficiency) of revenues over (under) expenditures (612,149) (612,149) (39,115) 573,034 Fund balance - beginning 667, ,772 1,107, ,870 Fund balance - ending $ 55,623 $ 55,623 $ 1,068,527 $ 1,012,904 The notes to the required supplementary information are an integral part of this statement. 70

76 Required Supplementary Information Winnemucca Events Complex Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget REVENUES Taxes $ 331,533 $ 512,199 $ 561,576 $ 49,377 Intergovernmental Revenue: Room taxes 250, , , ,955 Charges for Services 144, , ,870 82,870 Donations - 1,387,320 1,387,320 - Miscellaneous 600, ,000 17,765 (582,235) Total Revenues 1,325,533 2,893,519 2,576,486 (317,033) EXPENDITURES Culture and Recreation Function: Salaries and wages 347, , ,445 (35,086) Employee benefits 153, , ,266 29,116 Services and supplies 502, , ,359 84,541 Capital outlay 1,835,966 3,403,952 2,988, ,860 Total Expenditures 2,839,607 4,407,593 3,913, ,431 Excess (deficiency) of revenues over (under) expenditures (1,514,074) (1,514,074) (1,336,676) 177,398 OTHER FINANCING SOURCES (USES) Transfers out - - (2,501) (2,501) Net change in fund balance (1,514,074) (1,514,074) (1,339,177) 174,897 Fund balance - beginning 2,117,565 2,117,565 2,919, ,050 Prior period adjustment - - (328,799) (328,799) Fund balance - beginning, restated 2,117,565 2,117,565 2,590, ,251 Fund balance - ending $ 603,491 $ 603,491 $ 1,251,639 $ 648,148 The notes to the required supplementary information are an integral part of this statement. 71

77 Required Supplementary Information In-Lieu-of Tax Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, Budgeted Amounts 2018 Original Budget Final Budget Actual Variance to Final Budget REVENUES Intergovernmental Revenue: In-lieu-of tax payments $ 1,400,000 $ 1,400,000 $ 1,802,609 $ 402,609 OTHER FINANCING SOURCES (USES) Transfers out (2,000,000) (2,300,000) (2,000,000) 300,000 Net change in fund balance (600,000) (900,000) (197,391) 702,609 Fund balance - beginning 4,544,109 4,844,109 4,910,444 66,335 Fund balance - ending $ 3,944,109 $ 3,944,109 $ 4,713,053 $ 768,944 The notes to the required supplementary information are an integral part of this statement. 72

78 Required Supplementary Information Reconciliation of the General Fund (Budgetary Basis) to the General Fund (GAAP Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2018 General Fund Budgetary Basis Internally Reported Funds Eliminations General Fund GAAP Basis REVENUES Taxes $ 6,507,733 $ - $ - $ 6,507,733 Licenses and permits 1,098, ,098,334 Intergovernmental revenue 8,481, ,481,335 Charges for services 514, ,105 Fines and forfeits 764, ,802 Miscellaneous revenues 499, ,826 Total Revenues 17,865, ,866,135 EXPENDITURES Current: General government 6,205, ,847-6,408,401 Judicial 2,949, ,949,948 Public safety 7,731, ,731,230 Public works 22, ,626 Health 304, ,729 Community support 1,031, ,031,302 Intergovernmental expenditures 576, ,370 Debt service 26, ,772 Total Expenditures 18,848, ,847-19,051,378 Excess (deficiency) of revenues over (under) expenditures (982,666) (202,577) - (1,185,243) OTHER FINANCING SOURCES (USES) Proceeds from debt 376, ,200 Transfers in - 102,979 (67,491) 35,488 Transfers out (67,491) - 67,491 - Total Other Financing Sources (Uses) 308, , ,688 Net Change in Fund Balances (673,957) (99,598) - (773,555) Fund Balances - beginning 15,754, ,934-16,107,811 Fund Balances - ending $ 15,080,920 $ 253,336 $ - $ 15,334,256 The notes to the required supplementary information are an integral part of this statement. 73

79 Required Supplementary Information Schedule of Changes in Total OPEB Liability and Related Ratios Last 10 Fiscal Years 2018 PEBP Service Cost $ - Interest on the total OPEB Liability 57,188 Changes in assumptions (116,913) Benefit payments (131,643) Net changes (191,368) Total OPEB liability - beginning 2,199,690 Total OPEB liability - ending $ 2,008,322 Covered-employee payroll N/A Total OPEB liability as a percentage of covered-employee payroll N/A HCSDEHBP Service Cost $ 166,553 Interest on the total OPEB Liability 44,967 Changes in assumptions (75,343) Benefit payments (24,287) Net changes 111,890 Total OPEB liability - beginning 1,523,462 Total OPEB liability - ending $ 1,635,352 Covered-employee payroll $ 12,011,972 Total OPEB liability as a percentage of covered-employee payroll 13.61% Total Combined OPEB Liability Service Cost $ 166,553 Interest on the total OPEB Liability 102,155 Changes in assumptions (192,256) Benefit payments (155,930) Net changes (79,478) Total OPEB liability - beginning 3,723,152 Total OPEB liability - ending $ 3,643,674 Note: Complete data for this schedule is not available prior to The notes to the required supplementary information are an integral part of this schedule. 74

80 Required Supplementary Information Schedule of the County's Proportionate Share of the Net Pension Liability Public Employees' Retirement System of Nevada (PERS) Last 10 Fiscal Years Year Ended June 30 County's proportion of the net pension liability (asset) County's proportionate share of the net pension liability (asset) County's coveredemployee payroll County's proportionate share of the net pension liability (asset) as a percentage of its covered-employee payroll Plan fiduciary net position as a percentage of the total pension liability % $ 25,178,470 $ 10,657, % ~ % 26,686,520 10,656, % 74.42% % 25,482,108 10,965, % 72.23% % 23,296,447 11,590, % 75.13% 2014 * 29,394,061 11,364, % 76.31% 2013 * * 10,265,214 * 68.68% 2012 * * 10,642,369 * * 2011 * * 10,175,843 * * 2010 * * 10,078,447 * * 2009 * * 9,795,333 * * *Prospective implementation as of June 30, ~Information not yet available. The notes to the required supplementary information are an integral part of this schedule. 75

81 Required Supplementary Information Schedule of the County s Contributions Public Employees Retirement System of Nevada (PERS) Last 10 Fiscal Years Year Ended June 30 Statutorily determined contributions Contributions in relation to the actuarially determined contributions Contribution deficiency (excess) Coveredemployee payroll Contributions as a percentage of covered-employee payroll 2018 $ 1,660,739 $ 1,660,739 $ - $ 10,657, % ,294,315 3,294,315-10,656, % ,356,971 3,356,971-10,965, % ,432,351 3,432,351-11,590, % ,367,156 3,367,156-11,364, % ,947,536 2,947,536-10,265, % ,936,748 2,936,748-10,642, % ,596,664 2,596,664-10,175, % ,554,204 2,554,204-10,078, % ,339,276 2,339,276-9,795, % Note: Beginning with year ended June 30, 2016, all contributions shown reflect employer-paid contributions only, and employer-paid member contributions are excluded as required by Government Accounting Standards Board (GASB) Statement No. 82. The notes to the required supplementary information are an integral part of this schedule. 76

82 Notes to Required Supplementary Information June 30, 2018 Note 1 - Explanation of Differences Between General Fund (Budgetary Basis) and General Fund GAAP Basis The accompanying Reconciliation of the General Fund (Budgetary Basis) to the General Fund (GAAP Basis) presents balances combined for external financial reporting purposes. With the implementation of GASB Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, the budgetary basis of accounting for the General Fund differs from generally accepted accounting principles (GAAP). Guidance in GASB Statement 54 changed the definition of Special Revenue Funds for financial reporting purposes. Pursuant to statute, budget comparisons are required using the budget adopted. Two internally reported special revenue funds of the County (Unemployment Compensation Fund and Compensated Absences Fund) are combined with the General Fund for external reporting purposes to conform to generally accepted accounting principles. OPEB - Changes of Assumptions. Changes of assumptions and other inputs reflect a change in the discount rate from 4% in 2017 to 3.13% in OPEB - Plan Assets. No assets are accumulated in a trust that meets all of the following criteria of GASBS No. 75, paragraph 4, to pay benefits: Contributions from the employer and any nonemployer contributing entities, and earnings thereon, must be irrevocable. Plan assets must be dedicated to providing OPEB to Plan members in accordance with the benefit terms. Plan assets must be legally protected from the creditors of the employer, nonemployer contributing entities, the Plan administrator, and Plan members. Pension - Changes of Assumptions. Amounts reported for 2018 reflect an adjustment of the investment return rate from 8.00% to 7.50%, inflation rate for salary increases decreased from 3.50% to 2.75%, productivity pay increases decreased from 0.75% to 0.50%, with regular employee projected salary increases ranging from 4.60% to 9.75% and police/fire ranging from 5.25% to 14.5% in the 2017 report to regular employee ranges of 4.25% to 9.15% and police/fire ranging from 4.55% to 13.9% in the 2018 report. 77

83 Combining Balance Sheet Nonmajor Governmental Funds June 30, 2018 Special Revenue Capital Projects Funds Fund Total Assets Cash and investments $ 7,365,298 $ 2,442,235 $ 9,807,533 Taxes receivable 2, ,785 Accounts receivable 22, ,144 Interest receivable Due from other governments 67,763-67,763 Total assets $ 7,457,902 $ 2,444,110 $ 9,902,012 Liabilities Accounts payable $ 112,612 $ 98,891 $ 211,503 Accrued salaries and benefits 37,315-37,315 Due to other governments 2,094-2,094 Due to other funds 5,008-5,008 Total liabilities 157,029 98, ,920 Deferred Inflows of Resources Unavailable revenue - property taxes 2, ,785 Fund Balances Restricted 5,008,380 2,344,454 7,352,834 Committed 2,290,473-2,290,473 Total fund balances 7,298,853 2,344,454 9,643,307 Total liabilities, deferred inflows, and fund balances $ 7,457,902 $ 2,444,110 $ 9,902,012 78

84 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2018 Special Revenue Capital Projects Funds Fund Total REVENUES Taxes $ 627,626 $ 140,392 $ 768,018 Intergovernmental revenues 763, ,698 Charges for services 25,319-25,319 Fines and forfeits 207, ,236 Miscellaneous revenues 10,106 5,638 15,744 Total Revenues 1,633, ,030 1,780,015 EXPENDITURES Current: General government 421, ,778 Judicial 751, ,159 Public safety 56,045-56,045 Culture and recreation 1,099,484-1,099,484 Community support 191, , ,854 Intergovernmental - 35,338 35,338 Total Expenditures 2,519, ,920 3,237,658 Excess (deficiency) of revenues over (under) expenditures (885,753) (571,890) (1,457,643) OTHER FINANCING SOURCES (USES) Transfers in 120,000 1,100,000 1,220,000 Transfers out (8,000) - (8,000) Total other financing sources (uses) 112,000 1,100,000 1,212,000 Net Change in Fund Balances (773,753) 528,110 (245,643) Fund balances - beginning 8,072,606 1,816,344 9,888,950 Fund balances - ending $ 7,298,853 $ 2,344,454 $ 9,643,307 79

85 Reconciliation of the General Fund (Budgetary Basis) to the General Fund (GAAP Basis) Balance Sheet June 30, 2018 General Fund Internally Reported Funds General Fund Total Assets Cash and investments $ 14,449,800 $ 255,667 $ 14,705,467 Taxes receivable 31,513-31,513 Accounts receivable 175, ,525 Interest receivable 4, ,673 Notes receivable Due from other governments 1,585,645-1,585,645 Due from other funds 39,087-39,087 Total assets $ 16,287,106 $ 255,690 $ 16,542,796 Liabilities Accounts payable $ 489,270 $ 1,659 $ 490,929 Accrued salaries and benefits 473, ,203 Due to other governments 87,405-87,405 Due to other funds 34,896-34,896 Deferred revenue 89,594-89,594 Total liabilities 1,174,673 2,354 1,177,027 Deferred Inflows of Resources Unavailable revenue - property taxes 31,513-31,513 Fund Balances Nonspendable Restricted - 157, ,443 Committed - 95,893 95,893 Assigned Unassigned 15,080,034-15,080,034 Total fund balances 15,080, ,336 15,334,256 Total liabilities, deferred inflows, and fund balances $ 16,287,106 $ 255,690 $ 16,542,796 80

86 General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual REVENUES Taxes: Property taxes $ 3,414,748 $ 3,511,748 $ 6,291,007 $ 2,779,259 $ 4,952,386 Tax penalties 72,000 72, , , ,803 Total Taxes 3,486,748 3,583,748 6,507,733 2,923,985 5,083,189 Licenses and Permits: Business: Business licenses 40,000 40,000 50,069 10,069 48,406 Liquor licenses 5,000 5,000 4,680 (320) 4,200 Local gaming licenses 45,000 45,000 58,830 13,830 61,168 Franchise fees 750, , ,717 50, ,806 Nonbusiness: Building permits 140, , , ,310 Dog licenses 10,000 10,000 13,989 3,989 15,050 CCW permits 10,000 10,000 28,127 18,127 19,430 Marriage licenses - - 1,180 1,180 1,380 Other permits Total Licenses and Permits 1,000,000 1,000,000 1,098,334 98,334 1,116,823 Intergovernmental Revenues: Federal grants: Child support enforcement 200, , , , ,814 Consolidated task force ,758 31,758 22,603 Ots/joining forces ,485 45,485 60,062 Senior transportation grant , , ,502 SCAAP grant - - 1,875 1,875 5,765 Homeland security grant ,584 64,584 7,085 EMPG grant - - 1,906 1,906 3,000 SMART grant ,509 Body camera grant ,761 38,761 - Brazos tech grant ,927 28,927 - State grants: OHV grant ,357 44,357 - SERC grant ,337 OHV ride safe and smart grant ,930 Educational risk management grant - - 1,418 1,418 - United we stand grant ,995 Other Intergovernmental Revenues: Taylor grazing fees 20,000 20,000 38,204 18,204 39,416 NRA grant - - 3,700 3,700 6,650 City-county sharing agreement 350, , ,240 (84,760) 325,312 Humboldt river basin authority 52,000 52,000 20,129 (31,871) 45,000 (continued) 81

87 General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual Combined tax $ 6,038,385 $ 6,038,385 $ 7,139,073 $ 1,100,688 $ 6,748,012 Marijuana tax ,235 88,235 - State gaming license fees 140, , ,621 (5,379) 137,003 Total Intergovernmental Revenues 6,800,385 6,800,385 8,481,335 1,680,950 7,947,995 Charges for Services: General Government: Clerk fees 17,500 17,500 18,641 1,141 17,610 Candidate fees - - 1,270 1,270 - Recorder fees 110, , ,767 50, ,138 Recorder technology fees 10,000 10,000 31,096 21,096 18,123 Planning fees 9,000 9,000 9, ,775 Map fees 12,500 12,500 44,691 32,191 35,669 Subtotal General Government 159, , , , ,315 Judicial: Legal assistance fees 6,000 6,000 6, ,517 Law library fees 5,000 5,000 5, ,205 Bail bond fees 5,000 5,000 3,656 (1,344) 4,106 Civil action fees 42,000 42,000 64,703 22,703 62,587 Public administrator/guardian fees ,974 District court filing fees 10,000 10,000 17,442 7,442 16,643 Public defender fees 8,000 8,000 75,720 67,720 8,413 Subtotal Judicial 76,000 76, ,320 98, ,445 Public Safety: Sheriff fees 30,000 30,000 31,499 1,499 34,476 Detention fees 40,000 40,000 27,129 (12,871) 20,565 Detention meal preparation 10,000 10,000 2,856 (7,144) 5,933 Subtotal Public Safety 80,000 80,000 61,484 (18,516) 60,974 Other Charges for Services 11,000 11,000 12,416 1,416 11,475 Total Charges for Services 326, , , , ,209 Fines and Forfeits 600, , , , ,898 Miscellaneous Revenues: Interest earnings 150, , ,369 6, ,296 Miscellaneous 34,000 34, , , ,766 Geothermal lease ,061 49,061 46,704 Election reimbursement ,605 Forensic services 7,000 7,000 5,327 (1,673) 6,699 (continued) 82

88 General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual Restitution $ - $ - $ 813 $ 813 $ 92 Contributions ,705 Total Miscellaneous Revenues 191, , , , ,867 Total Revenues 12,404,133 12,501,133 17,865,865 5,364,732 15,635,981 EXPENDITURES BY FUNCTION AND ACTIVITY General Government Function: Legislative: Commissioners Salaries and wages 157, , , ,373 Employee benefits 97,390 97,390 90,397 6,993 76,173 Services and supplies 39,750 39,750 39, ,309 Capital outlay ,684 (30,684) - Subtotal Legislative 294, , ,897 (22,527) 280,855 Executive: County Administrator Salaries and wages 249, , ,866 2, ,304 Employee benefits 114, , ,612 5,961 97,585 Services and supplies 3,000 3,000 4,345 (1,345) 4,208 Subtotal Executive 366, , ,823 6, ,097 Elections: Services and supplies 160, , ,954 2,996 54,389 Finance: Comptroller: Salaries and wages 153, , ,252 (4,421) 135,782 Employee benefits 78,780 78,780 81,455 (2,675) 60,611 Services and supplies 127, , ,188 16, , , , ,895 9, ,870 Assessor: Salaries and wages 423, , ,989 29, ,477 Employee benefits 218, , ,355 27, ,030 Services and supplies 55,605 55,605 45,216 10,389 39, , , ,560 67, ,759 Treasurer: Salaries and wages 179, , ,671 6, ,241 (continued) 83

89 General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual Employee benefits $ 94,120 $ 94,120 $ 87,011 $ 7,109 $ 88,432 Services and supplies 26,700 26,700 21,547 5,153 19, , , ,229 18, ,781 Subtotal Finance 1,358,467 1,358,467 1,262,684 95,783 1,286,410 Other: Clerk: Salaries and wages 313, , ,993 25, ,971 Employee benefits 155, , ,891 16, ,471 Services and supplies 19,200 19,200 16,120 3,080 12, , , ,004 44, ,876 Recorder: Salaries and wages 173, , ,690 (130) 168,775 Employee benefits 92,490 92,490 87,384 5,106 84,789 Services and supplies 75,320 75,320 53,154 22,166 49, , , ,228 27, ,152 Computer Systems: Salaries and wages 158, , ,839 17, ,864 Employee benefits 75,034 75,034 57,198 17,836 58,824 Services and supplies 378, , ,480 (83,846) 163, , , ,517 (48,853) 351,326 Planning: Salaries and wages 51,100 51,100 51,545 (445) 62,573 Employee benefits 28,820 28,820 27,733 1,087 33,990 Services and supplies 36,900 36,900 5,622 31,278 5, , ,820 84,900 31, ,144 Buildings and Grounds: Salaries and wages 450, , ,406 7, ,312 Employee benefits 256, , ,973 17, ,463 Services and supplies 816, , , , ,148 Capital outlay 35,000 35,000 3,069 31,931-1,557,942 1,557,942 1,388, ,491 1,109,923 Communications: Salaries and wages 158, , ,952 37, ,548 Employee benefits 75,034 75,034 61,997 13,037 59,475 Services and supplies 147, , ,955 38, ,251 Capital outlay ,871 (72,871) - 381, , ,775 15, ,274 (continued) 84

90 General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual Personnel: Services and supplies $ 41,500 $ 41,500 $ 35,056 $ 6,444 $ 21,491 Miscellaneous: Insurance 575, , ,710 97, ,667 Insurance reserve 150, ,000 1, ,422 3,133 Humboldt river basin authority 60,000 60,000 30,041 29,959 54,756 Miscellaneous 392, , , , ,936 1,177,000 1,177, , , ,492 Subtotal Other 4,716,492 4,716,492 4,076, ,296 3,445,678 Total General Government Function 6,897,012 6,929,012 6,205, ,458 5,394,429 Judicial Function: Justice Court: Salaries and wages 407, , ,487 14, ,670 Employee benefits 211, , ,889 21, ,121 Services and supplies 83,500 83,500 39,626 43,874 45, , , ,002 79, ,363 District Attorney: Salaries and wages 971, , ,757 72, ,170 Employee benefits 451, , ,769 54, ,954 Services and supplies 111, ,700 85,920 25,780 71,953 Capital Outlay 119, , ,016 (12,448) - 1,654,508 1,654,508 1,513, ,046 1,431,077 Child Support: Salaries and wages 262, , ,765 16, ,672 Employee benefits 159, , ,563 28, ,429 Services and supplies 44,736 44,736 46,925 (2,189) 40, , , ,253 42, ,270 Public Defender: Salaries and wages 172, , ,763 (3,223) 186,722 Employee benefits 78,800 78,800 75,921 2,879 79,688 Services and supplies 12,700 12,700 10,680 2,020 7, , , ,364 1, ,178 Alternate Public Defender: Salaries and wages 85,850 85,850 97,250 (11,400) 3,302 (continued) 85

91 General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual Employee benefits $ 38,000 $ 38,000 $ 27,091 $ 10,909 $ 1,078 Services and supplies 5,850 5,850 3,526 2, , , ,867 1,833 4,380 Total Judicial Function 3,216,984 3,216,984 2,949, ,036 2,770,268 Public Safety Function: Sheriff: Salaries and wages 2,005,460 2,005,460 1,983,700 21,760 1,954,406 Employee benefits 1,110,670 1,110,670 1,011,875 98, ,798 Services and supplies 390, , ,491 (137,991) 358,692 Capital outlay 315, , ,654 21,346 20,257 3,821,630 3,821,630 3,817,720 3,910 3,325,153 Detention: Salaries and wages 1,441,890 1,441,890 1,412,677 29,213 1,443,542 Employee benefits 865, , ,456 73, ,005 Services and supplies 585, , , , ,174 Capital outlay ,601 2,893,220 2,893,220 2,455, ,635 2,619,322 Dispatch: Salaries and wages 610, , ,339 1, ,403 Employee benefits 332, , ,970 62, ,220 Services and supplies 260, , ,663 93, ,665 Capital outlay ,643 1,202,850 1,202,850 1,045, , ,931 Building Official: Salaries and wages 227, , ,655 58, ,467 Employee benefits 108, ,510 74,123 34,387 71,845 Services and supplies 31,900 31,900 20,085 11,815 14, , , , , ,142 Task Force: Salaries and wages 81,870 81,870 78,903 2,967 83,118 Employee benefits 45,470 45,470 44, ,758 Services and supplies 22,000 22,000 8,698 13,302 16,449 Capital outlay ,664 (15,664) - 149, , ,021 1, ,325 LEPC: Services and supplies 60,000 60, ,931 32,254 Total Public Safety Function 8,495,350 8,495,350 7,731, ,120 7,368,127 (continued) 86

92 General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual Public Works Function: Services and supplies $ 22,100 $ 22,100 $ 22,626 $ (526) $ 21,683 Health Function: Health: Services and supplies 158, , ,090 (3,936) 139,386 Mosquito Control: Services and supplies 150, , ,639 7, ,501 Total Health Function 308, , ,729 3, ,887 Culture and Recreation Function: Virgin Valley Campground: Services and supplies (2,500) Community Support Function: Services and supplies: Senior citizens 471, , ,188 49, ,115 Museum 236, , ,588 25, ,049 Senior transportation grant 210, , ,443 (18,443) 191,502 Range improvement districts 25,000 25,000 38,204 (13,204) 39,416 Western NV development ,625 NDOW Grant ,879 (32,879) - Fire protection 100, , , ,000 Total Community Support Function 1,042,000 1,042,000 1,031,302 10, ,707 Intergovernmental Expenditure Function: Services and supplies: City of Winnemucca gaming licenses 100, , , ,000 Airport 37, ,000 25,006 76,994 (1,628) Cemetery 35,000 35,000 39,538 (4,538) 34,775 Parks and recreation 400, , ,060 29, ,960 Animal control/spay neuter 25,000 25,000 35,000 (10,000) 34,000 Legal assistance 9,000 9,000 6,766 2,234 6,517 Total Intergovernmental Expenditure Function 606, , ,370 94, ,624 Debt service function: Principal ,548 (23,548) - Interest - - 3,224 (3,224) - Total Debt service function ,772 (26,772) - Total Expenditures 20,587,600 20,684,600 18,848,531 1,836,069 17,244,225 (continued) 87

93 General Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual Excess (deficiency) of revenues over expenditures $ (8,183,467) $ (8,183,467) $ (982,666) $ 7,200,801 $ (1,608,244) OTHER FINANCING SOURCES (USES) Proceeds from debt , ,200 - Transfers in Transfers out (71,200) (71,200) (67,491) 3,709 (65,980) Contingency (350,000) (350,000) - 350,000 - Total other financing sources (uses) (421,200) (421,200) 308, ,909 (65,980) Net change in fund balance (8,604,667) (8,604,667) (673,957) 7,930,710 (1,674,224) Fund balance - beginning 9,713,461 9,713,461 15,754,877 6,041,416 17,368,971 Prior period adjustment ,130 Fund balance - beginning, restated 9,713,461 9,713,461 15,754,877 6,041,416 17,429,101 Fund balance - ending $ 1,108,794 $ 1,108,794 $ 15,080,920 $ 13,972,126 $ 15,754,877 88

94 Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2018 (Page 1 of 2) Cooperative Extension Fund Library Fund 6th Judicial District Drug Court Fund Administrative Assessment Fund Assets Cash and investments $ 1,364,334 $ 2,347,917 $ 230,121 $ 153,602 Taxes receivable 1, Accounts receivable ,173 - Due from other governments 11,257 5,100 44,782 - Total assets $ 1,376,853 $ 2,353,017 $ 293,076 $ 153,602 Liabilities Accounts payable $ 4,018 $ 33,960 $ 49,862 $ 4,191 Accrued salaries and benefits 5,228 27,105 4,982 - Due to other governments Due to other funds 462 1, Total liabilities 9,708 62,544 54,844 4,191 Deferred Inflows of Resources Unavailable revenue - property taxes 1, Fund Balances Restricted 1,365, , ,411 Committed - 2,290, Total fund balances 1,365,883 2,290, , ,411 Total liabilities, deferred inflows, and fund balances $ 1,376,853 $ 2,353,017 $ 293,076 $ 153,602 89

95 Stabilization Fund Check Restitution Fund Genetic Marker Testing Fund Assessor's Technology Fund 911 Enhancement Fund $ 1,050,843 $ 1,323 $ 2,094 $ 1,126,332 $ 154, , $ 1,050,843 $ 1,323 $ 2,094 $ 1,126,332 $ 159,647 $ - $ 100 $ - $ 16,561 $ , ,094 16, ,050,843 1,223-1,109, , ,050,843 1,223-1,109, ,647 $ 1,050,843 $ 1,323 $ 2,094 $ 1,126,332 $ 159,647 90

96 Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2018 (Page 2 of 2) Justice Court Administrative Assessment Fund Humboldt Fire District General Fund Library Memorial Fund Total Nonmajor Special Revenue Funds Assets Cash and investments $ 274,560 $ 489,933 $ 169,240 $ 7,365,298 Taxes receivable ,020 Accounts receivable ,821 Due from other governments - 4,624 2,000 67,763 Total assets $ 274,560 $ 495,315 $ 171,240 $ 7,457,902 Liabilities Accounts payable - $ 1,349 $ 2,571 $ 112,612 Accrued salaries and benefits ,315 Due to other governments ,094 Due to other funds - 3,067-5,008 Total liabilities - 4,416 2, ,029 Deferred Inflows of Resources Unavailable revenue - property taxes ,020 Fund Balances Restricted 274, , ,669 5,008,380 Committed ,290,473 Total fund balances 274, , ,669 7,298,853 Total Liabilities, Deferred Inflows, and Fund Balances $ 274,560 $ 495,315 $ 171,240 $ 7,457,902 91

97 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 (Page 1 of 2) Cooperative Extension Fund Library Fund 6th Judicial Drug Court Fund Administrative Assessment Fund REVENUES Taxes $ 231,648 $ 31,043 $ - $ - Intergovernmental revenue 57,357 38, ,093 - Charges for services Fines and forfeits - 15,244 75,301 48,267 Miscellaneous revenues Total Revenues 289,512 85, ,586 48,267 EXPENDITURES Current: General government Judicial ,299 21,736 Public safety Culture and recreation - 1,086, Community support 191, Total Expenditures 191,272 1,086, ,299 21,736 Excess (deficiency) of revenues over (under) expenditures 98,240 (1,000,684) 15,287 26,531 OTHER FINANCING SOURCES (USES) Transfers in ,000 - Transfers out (1,000) (7,000) - - Total Other Financing Sources (Uses) (1,000) (7,000) 120,000 - Net Change in Fund Balances 97,240 (1,007,684) 135,287 26,531 Fund Balances - beginning 1,268,643 3,298, , ,880 Fund Balances - ending $ 1,365,883 $ 2,290,473 $ 238,232 $ 149,411 92

98 Stabilization Fund Check Restitution Fund Genetic Marker Testing Fund Assessor's Technology Fund 911 Enhancement Fund $ - $ - $ - $ 276,916 $ 56, , , ,916 56, , ,805 25, ,805 25, , (1,805) - (144,862) 56, (1,805) - (144,862) 56,012 1,050,843 3,028-1,254, ,635 $ 1,050,843 $ 1,223 $ - $ 1,109,771 $ 159,647 93

99 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2018 (Page 2 of 2) Justice Court Administrative Assessment Humboldt Fire District General Fund Library Memorial Fund Total Nonmajor Special Revenue Funds REVENUES Taxes $ - $ 32,007 $ - $ 627,626 Intergovernmental revenue - 23,570 2, ,698 Charges for services ,319 Fines and forfeits 68, ,236 Miscellaneous revenues - - 8,642 10,106 Total Revenues 68,424 55,577 10,642 1,633,985 EXPENDITURES Current: General government ,778 Judicial ,159 Public safety - 56,045-56,045 Culture and recreation ,070 1,099,484 Community support ,272 Total Expenditures - 56,045 13,070 2,519,738 Excess (deficiency) of revenues over (under) expenditures 68,424 (468) (2,428) (885,753) OTHER FINANCING SOURCES (USES) Transfers in ,000 Transfers out (8,000) Total Other Financing Sources (Uses) ,000 Net Change in Fund Balances 68,424 (468) (2,428) (773,753) Fund Balances - beginning 206, , ,097 8,072,606 Fund Balances - ending $ 274,560 $ 490,141 $ 168,669 $ 7,298,853 94

100 Cooperative Extension Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual 2017 Variance to Final Budget Actual REVENUES Taxes $ 136,758 $ 136,758 $ 231,648 $ 94,890 $ 183,851 Intergovernmental Revenue: Combined tax 48,514 48,514 57,357 8,843 54,215 Miscellaneous Total Revenues 185, , , , ,311 EXPENDITURES Community Support Function: Salaries and wages 89,970 89,970 90,641 (671) 87,913 Employee benefits 53,870 53,870 50,526 3,344 48,338 Services and supplies 93,775 93,775 50,105 43,670 40,717 Total Expenditures 237, , ,272 46, ,968 Excess (deficiency) of revenues over (under) expenditures (52,343) (52,343) 98, ,583 61,343 OTHER FINANCING SOURCES (USES) Transfers out (1,000) (1,000) (1,000) - (1,000) Net change in fund balance (53,343) (53,343) 97, ,583 60,343 Fund balance - beginning 1,090,763 1,090,763 1,268, ,880 1,208,300 Fund balance - ending $ 1,037,420 $ 1,037,420 $ 1,365,883 $ 328,463 $ 1,268,643 95

101 Library Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Taxes $ - $ - $ 31,043 $ 31,043 $ 5,278 Intergovernmental Revenue: Federal grants - - 5,100 5,100 5,100 State grants ,578 33,578 22,763 Total Intergovernmental Revenues ,678 38,678 27,863 Fines and Forfeits: Library fines 10,000 10,000 15,244 5,244 17,816 Miscellaneous ,800 Total Revenues 10,000 10,000 85,730 75,730 73,757 EXPENDITURES Culture and Recreation Function: Salaries and wages 579, , , , ,323 Employee benefits 356, , , , ,119 Services and supplies 807, , , , ,351 Capital outlay ,989 (16,989) - Total Expenditures 1,743,680 1,743,680 1,086, ,266 1,224,793 Excess (deficiency) of revenues over (under) expenditures (1,733,680) (1,733,680) (1,000,684) 732,996 (1,151,036) OTHER FINANCING SOURCES (USES) Transfers out (7,000) (7,000) (7,000) - (8,000) Net change in fund balance (1,740,680) (1,740,680) (1,007,684) 732,996 (1,159,036) Fund balance - beginning 2,040,540 2,040,540 3,298,157 1,257,617 4,457,193 Fund balance - ending $ 299,860 $ 299,860 $ 2,290,473 $ 1,990,613 $ 3,298,157 96

102 6th Judicial District Drug Court Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Intergovernmental Revenue: Federal grant $ 325,000 $ 325,000 $ 400,896 $ 75,896 $ 298,452 State grants 170, , ,197 71, ,100 Total Intergovernmental Revenues 495, , , , ,552 Fines and Forfeits ,301 75,301 13,724 Miscellaneous Total Revenues 495, , , , ,276 EXPENDITURES Judicial Function: Drug Court: Salaries and wages 111, ,395 95,191 16, ,364 Employee benefits 30,550 30,550 10,259 20,291 32,648 Services and supplies 566, , ,849 (29,919) 588,361 Total Expenditures 708, , ,299 6, ,373 Excess (deficiency) of revenues over (under) expenditures (213,875) (213,875) 15, ,162 (105,097) OTHER FINANCING SOURCES (USES) Transfers in 100, , ,000 20,000 - Transfers out (2,500) Total Other Financing Sources (Uses) 100, , ,000 20,000 (2,500) Net change in fund balance (113,875) (113,875) 135, ,162 (107,597) Fund balance - beginning 139, , ,945 (36,428) 210,542 Fund balance - ending $ 25,498 $ 25,498 $ 238,232 $ 192,734 $ 102,945 97

103 Administrative Assessment Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Fines and Forfeits: Court administrative assessment $ 40,000 $ 40,000 $ 48,267 $ 8,267 $ 48,759 EXPENDITURES Judicial Function: Justice Court: Services and supplies 60,000 60,000 21,736 38,264 20,767 Excess (deficiency) of revenues over (under) expenditures (20,000) (20,000) 26,531 46,531 27,992 Fund balance - beginning 64,887 64, ,880 57,993 94,888 Fund balance - ending $ 44,887 $ 44,887 $ 149,411 $ 104,524 $ 122,880 98

104 Stabilization Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual REVENUES Taxes: Property taxes $ - $ - $ - $ - $ - EXPENDITURES General Government Function: Services and supplies Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning 1,050,843 1,050,843 1,050,843-1,050,843 Fund balance - ending $ 1,050,843 $ 1,050,843 $ 1,050,843 $ - $ 1,050,843 99

105 Check Restitution Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Charges for Services: Check restitution $ 10,000 $ 10,000 $ - $ (10,000) $ 120 EXPENDITURES Judicial Function: Settlements 10,000 10, , Services and supplies - - 1,305 (1,305) 1,384 Total Expenditures 10,000 10,000 1,805 8,195 1,753 Excess (deficiency) of revenues over (under) expenditures - - (1,805) (1,805) (1,633) Fund balance - beginning 4,662 4,662 3,028 (1,634) 4,661 Fund balance - ending $ 4,662 $ 4,662 $ 1,223 $ (3,439) $ 3,

106 Genetic Marker Testing Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Charges for Services: Fees $ - $ - $ 25,319 $ 25,319 $ 24,092 EXPENDITURES Judicial Function: Services and supplies ,319 (25,319) 24,092 Excess (deficiency) of revenues over (under) expenditures Fund balance - beginning Fund balance - ending $ - $ - $ - $ - $ - 101

107 Assessor's Technology Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual REVENUES Taxes: Property taxes $ 70,000 $ 70,000 $ 276,916 $ 206,916 $ 158,367 EXPENDITURES General Government Function: Services and supplies 608, , , , ,668 Excess (deficiency) of revenues over (under) expenditures (538,000) (538,000) (144,862) 393,138 (126,301) Fund balance - beginning 1,268,933 1,268,933 1,254,633 (14,300) 1,380,934 Fund balance - ending $ 730,933 $ 730,933 $ 1,109,771 $ 378,838 $ 1,254,

108 911 Enhancement Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Taxes: Surcharge $ 50,000 $ 50,000 $ 56,012 $ 6,012 $ 56,640 EXPENDITURES Public Safety Function: Capital outlay ,934 Excess (deficiency) of revenues over (under) expenditures 50,000 50,000 56,012 6,012 7,706 Fund balance - beginning 96,455 96, ,635 7,180 95,929 Fund balance - ending $ 146,455 $ 146,455 $ 159,647 $ 13,192 $ 103,

109 Justice Court Administrative Assessment Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Fines and Forfeits: Court administrative assessment $ 30,000 $ 30,000 $ 68,424 $ 38,424 $ 68,480 Excess (deficiency) of revenues over (under) expenditures 30,000 30,000 68,424 38,424 68,480 Fund balance - beginning 167, , ,136 38, ,656 Fund balance - ending $ 197,656 $ 197,656 $ 274,560 $ 76,904 $ 206,

110 Humboldt Fire District General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Taxes: Property taxes $ 27,909 $ 27,909 $ 32,007 $ 4,098 $ 32,558 Intergovernmental Revenue: Combined tax 23,078 23,078 23, ,283 Total Revenues 50,987 50,987 55,577 4,590 54,841 EXPENDITURES Public Safety Function: Services and supplies 120, ,000 56,045 63,955 39,373 Capital outlay 35,000 35,000-35,000 - Total Public Safety 155, ,000 56,045 98,955 39,373 Excess (deficiency) of revenues over (under) expenditures (104,013) (104,013) (468) 103,545 15,468 Fund balance - beginning 373, , , , ,141 Fund balance - ending $ 269,346 $ 269,346 $ 490,141 $ 220,795 $ 490,

111 Library Memorial Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Grants $ - $ - $ 2,000 $ 2,000 $ - Miscellaneous 70,000 70,000 8,642 (61,358) 83,050 Total Revenues 70,000 70,000 10,642 (59,358) 83,050 EXPENDITURES Culture and Recreation Function: Services and supplies 80,000 80,000 13,070 66,930 11,926 Excess (deficiency) of revenues over (under) expenditures (10,000) (10,000) (2,428) 7,572 71,124 Fund balance - beginning 78,757 78, ,097 92,340 99,973 Fund balance - ending $ 68,757 $ 68,757 $ 168,669 $ 99,912 $ 171,

112 Internally Reported (Budgetary Basis) Funds Reported As Part of the General Fund for External Reporting Purposes Combining Balance Sheet June 30, 2018 Unemployment Insurance Fund Compensated Absences Fund Total Assets: Cash and investments $ 158,008 $ 97,659 $ 255,667 Interest receivable Total assets $ 158,008 $ 97,682 $ 255,690 Liabilities Accounts payable $ 565 $ 1,094 $ 1,659 Accrued salaries/benefits Total liabilities 565 1,789 2,354 Fund Balances Restricted 157, ,443 Committed - 95,893 95,893 Total fund balances 157,443 95, ,336 Total liabilities and fund balances $ 158,008 $ 97,682 $ 255,

113 Internally Reported (Budgetary Basis) Funds Reported As Part of the General Fund for External Reporting Purposes Combining Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2018 Unemployment Insurance Fund Compensated Absences Fund Total REVENUES Miscellaneous revenues $ - $ 270 $ 270 EXPENDITURES General Government Function 28, , ,847 Excess (deficiency) of revenues over (under) expenditures (28,012) (174,565) (202,577) OTHER FINANCING SOURCES (USES) Transfers in - 102, ,979 Net change in fund balance (28,012) (71,586) (99,598) Fund balance - beginning 185, , ,934 Fund balance - ending $ 157,443 $ 95,893 $ 253,

114 Unemployment Insurance Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Charges for Services: Fund assessments $ - $ - $ - $ - $ - EXPENDITURES General Government Function: Services and supplies 30,000 30,000 28,012 1,988 22,711 Excess (deficiency) of revenues over (under) expenditures (30,000) (30,000) (28,012) 1,988 (22,711) Fund balance - beginning 221, , ,455 (36,121) 208,166 Fund balance - ending $ 191,576 $ 191,576 $ 157,443 $ (34,133) $ 185,

115 Compensated Absence Fund (Budgetary Basis) Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Miscellaneous: Fund assessments $ 115,500 $ 115,500 $ - $ (115,500) $ 500 Interest Total Revenues 115, , (115,230) 913 EXPENDITURES General Government Function: Services and supplies 200, , ,835 25, ,556 Excess (deficiency) of revenues over (under) expenditures (84,500) (84,500) (174,565) (90,065) (335,643) OTHER FINANCING SOURCES (USES) Transfers in 103, , ,979 (721) 104,031 Net change in fund balance 19,200 19,200 (71,586) (90,786) (231,612) Fund balance - beginning 311, , ,479 (143,644) 399,091 Fund balance - ending $ 330,323 $ 330,323 $ 95,893 $ (234,430) $ 167,

116 Building Reserve Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual REVENUES Taxes: Property taxes $ 82,891 $ 82,891 $ 140,399 $ 57,508 $ 111,421 Charges for Services: Rents 27,600 27,600 23,115 (4,485) 27,556 Miscellaneous ,771 17,771 - Total Revenues 110, , ,285 70, ,977 Excess (deficiency) of revenues over (under) expenditures 110, , ,285 70, ,977 Fund balance - beginning 1,229,090 1,229,090 1,275,763 46,673 1,136,786 Fund balance - ending $ 1,339,581 $ 1,339,581 $ 1,457,048 $ 117,467 $ 1,275,

117 Balance Sheet Nonmajor Capital Projects Fund June 30, 2018 ASSETS Cash and investments $ 2,442,235 Taxes receivable 765 Accounts receivable 323 Interest receivable 787 Total assets $ 2,444,110 LIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES Liabilities: Accounts payable $ 98,891 Total liabilities 98,891 Deferred Inflows of Resources: Unavailable revenue - property taxes 765 Fund Balances: Restricted 2,344,454 Total liabilities, deferred inflows, and fund balances $ 2,444,

118 Nonmajor Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual REVENUES Taxes: Property taxes $ 82,891 $ 82, ,392 $ 57,501 $ 111,428 Miscellaneous - - 5,638 5,638 1,099 Total Revenues 82,891 82, ,030 63, ,527 EXPENDITURES Community Support Function: Capital outlay 1,400,000 1,400, , , ,373 Intergovernmental Expenditure Function: Services and supplies 38,000 38,000 35,338 2,662 28,022 Total Expenditures 1,438,000 1,438, , , ,395 Excess (deficiency) of revenues over (under) expenditures (1,355,109) (1,355,109) (571,890) 783,219 (573,868) OTHER FINANCING SOURCES (USES) Transfers in 1,400,000 1,400,000 1,100,000 (300,000) 1,550,000 Net change in fund balance 44,891 44, , , ,132 Fund balance - beginning 779, ,517 1,816,344 1,036, ,212 Fund balance - ending $ 824,408 $ 824,408 $ 2,344,454 $ 1,520,046 $ 1,816,

119 Humboldt Television Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual OPERATING REVENUES Charges for Services: User fees $ 210,000 $ 210,000 $ 282,812 $ 72,812 $ 242,362 PBS grant ,786 State grants ,246 10,246 - Miscellaneous revenue 10,000 10,000 11,602 1,602 11,650 Total Operating Revenues 220, , ,660 84, ,798 OPERATING EXPENSES Salaries and wages 94,644 94,644 90,818 3,826 66,077 Employee benefits 45,509 45,509 28,052 17,457 28,681 Services and supplies 127, ,140 84,358 42,782 66,924 Depreciation 50,000 50,000 21,229 28,771 26,650 Total Operating Expenses 317, , ,457 92, ,332 Operating Income (Loss) (97,293) (97,293) 80, ,496 69,466 TRANSFERS IN (OUT) Transfers out (400,700) (400,700) (100,667) 300,033 (350,750) Change in Net Position $ (497,993) $ (497,993) (20,464) $ 477,529 (281,284) Net position, July 1 1,244,300 1,525,584 Prior period adjustment 4,349 - Net position, July 1, restated 1,248,649 1,525,584 Net position, June 30 $ 1,228,185 $ 1,244,

120 Humboldt Television Fund Schedule of Cash Flows For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Actual Actual CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 298,674 $ 259,576 Cash payments for personnel costs (120,071) (93,525) Cash payments for services and supplies (75,508) (87,959) Net Cash Provided (Used) by Operating Activities 103,095 78,092 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers to other funds (100,667) (350,750) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchases of capital assets - (203,132) Net Increase (Decrease) in Cash and Investments 2,428 (475,790) CASH AND INVESTMENTS, JULY 1 1,005,135 1,480,925 CASH AND INVESTMENTS, JUNE 30 $ 1,007,563 $ 1,005,135 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 80,203 $ 69,466 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 21,229 26,650 Change in assets and liabilities: (Increase) decrease in: Accounts receivable (5,986) 1,778 Inventory 4,598 2,013 Increase (decrease) in: Accounts payable 4,252 (23,048) Accrued salaries and benefits (1,201) 1,233 Total Adjustments 22,892 8,626 Net Cash Provided (Used) by Operating Activities $ 103,095 $ 78,

121 Solid Waste Management Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget Actual Variance to Final Budget Actual OPERATING REVENUES Charges for Services: User fees $ 950,000 $ 950,000 $ 1,139,231 $ 189,231 $ 1,104,808 OPERATING EXPENSES Salaries and wages 45,199 45,199 37,531 7,668 33,332 Employee benefits 21,598 21,598 9,362 12,236 16,762 Services and supplies 938, , , , ,039 Depreciation 5,000 5,000 1,678 3, Total Operating Expenses 1,009,997 1,009, , , ,972 Operating Income (Loss) (59,997) (59,997) 338, , ,836 NONOPERATING REVENUES (EXPENSES) Interest earnings 1,500 1,500 10,581 9,081 4,958 Income Before Transfers (58,497) (58,497) 348, , ,794 TRANSFERS IN (OUT) Transfers out (300) (300) (300) - (300) Change in Net Position $ (58,797) $ (58,797) 348,631 $ 407, ,494 Net position, July 1 3,046,775 2,728,281 Prior period adjustment (3,055) - Net position, July 1, restated 3,043,720 2,728,281 Net position, June 30 $ 3,392,351 $ 3,046,

122 Solid Waste Management Fund Schedule of Cash Flows For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Actual Actual CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 1,145,112 $ 1,088,875 Cash payments for personnel costs (48,947) (47,035) Cash payments for services and supplies (753,904) (815,119) Net Cash Provided (Used) by Operating Activities 342, ,721 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchases of capital assets - (8,390) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers to other funds (300) (300) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 10,081 4,531 Net Increase (Decrease) in Cash and Investments 352, ,562 CASH AND INVESTMENTS, JULY 1 3,074,623 2,852,061 CASH AND INVESTMENTS, JUNE 30 $ 3,426,665 $ 3,074,623 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 338,350 $ 313,836 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operations: Depreciation 1, Change in assets and liabilities: (Increase) decrease in: Accounts receivable 5,881 (15,933) Increase (decrease) in: Accounts payable (1,594) (75,080) Accrued salaries and benefits (2,054) 3,059 Total Adjustments 3,911 (87,115) Net Cash Provided (Used) by Operating Activities $ 342,261 $ 226,

123 McDermitt Sewer District Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual OPERATING REVENUES Charges for Services: User fees $ 26,400 $ 26,400 $ 43,947 $ 17,547 $ 44,258 OPERATING EXPENSES Salaries and wages 2,116 2,116 5,400 (3,284) 2,170 Employee benefits 5,792 5,792 1,336 4, Services and supplies 36,013 36,013 31,071 4,942 23,883 Depreciation 40,000 40,000 37,431 2,569 38,108 Total Operating Expenses 83,921 83,921 75,238 8,683 64,547 Operating Income (Loss) (57,521) (57,521) (31,291) 26,230 (20,289) NONOPERATING REVENUES (EXPENSES) Interest expense (10,168) (10,168) (10,168) - (8,966) Income Before Transfers (67,689) (67,689) (41,459) 26,230 (29,255) TRANSFERS IN (OUT) Transfers out - - (210) (210) - Change in Net Position $ (67,689) $ (67,689) (41,669) $ 26,020 (29,255) Net position, July 1 832, ,828 Prior period adjustment (2,297) - Net position July 1, restated 830, ,828 Net position, June 30 $ 788,607 $ 832,

124 McDermitt Sewer District Fund Schedule of Cash Flows For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Actual Actual CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 43,366 $ 45,247 Cash payments for personnel costs (7,032) (4,143) Cash payments for services and supplies (27,550) (20,743) Net Cash Provided (Used) by Operating Activities 8,784 20,361 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers to other funds (210) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Interest paid on debt service (10,168) (8,966) Principal paid on debt service (4,191) (3,805) Net Cash Provided (Used) by Financing Activities (14,359) (12,771) Net Increase (Decrease) in Cash and Investments (5,785) 7,590 CASH AND INVESTMENTS, JULY 1 167, ,647 CASH AND INVESTMENTS, JUNE 30 $ 161,452 $ 167,237 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ (31,291) $ (20,289) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 37,431 38,108 Change in assets and liabilities: (Increase) decrease in: Accounts receivable (581) 989 Increase (decrease) in: Accounts payable 3,521 3,140 Accrued salaries and benefits (296) (1,587) Total Adjustments 40,075 40,650 Net Cash Provided (Used) by Operating Activities $ 8,784 $ 20,

125 Combining Statement of Net Position Nonmajor Enterprise Funds June 30, 2018 Quinn River Television District Fund ASSETS Current Assets: Cash and investments 192,116 Denio Television District Fund Golconda Water District Fund $ $ 34,924 $ 40,064 Accounts receivable - - 2,850 Intergovernmental receivable Total Current Assets 192,116 34,924 42,914 Noncurrent Assets: Capital assets: Land Construction in progress Buildings 7,970 4,800 - Machinery and equipment 193,202 11,715 1,985 Infrastructure - - 2,192,513 Less accumulated depreciation (155,344) (16,515) (779,396) Total capital assets (net of accumulated depreciation) 45,828-1,415,102 Total Assets 237,944 34,924 1,458,016 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pensions - - 9,128 LIABILITIES Current Liabilities: Accounts payable 1,655-4,633 Accrued liabilities - - 3,019 Due to other funds Total Current Liabilities 1,655-7,652 Noncurrent Liabilities: Net pension liability Total Liabilities 1,655-7,721 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions ,690 NET POSITION Net investment in capital assets 45,828-1,415,102 Unrestricted 190,461 34,924 30,631 Total Net Position $ 236,289 $ 34,924 $ 1,445,

126 Paradise Sewer District Fund McDermitt Water District Fund Total $ 22,451 $ 81,892 $ 371,447-7,677 10,527-39,830 39,830 22, , , , ,660-70,527 70, , , , , ,477 3,412,111 (145,073) (414,562) (1,510,890) 114, ,277 2,545, ,275 1,098,676 2,966,835-6,478 15,606 1,302 19,127 26, ,835 7,500-7,500 8,802 19,943 38,052-4,847 4,916 8,802 24,790 42,968-10,504 24, , ,277 2,545,031 13, , ,248 $ 128,473 $ 1,069,860 $ 2,915,

127 Combining Statement of Revenues, Expenses, and Changes in Net Position Nonmajor Enterprise Funds For the Year Ended June 30, 2018 Quinn River Television District Fund Denio Television District Fund Golconda Water District Fund OPERATING REVENUES Charges for Services: User fees $ 15,339 $ 1,491 $ 33,898 Grants Miscellaneous Total Operating Revenues 15,389 1,491 33,898 OPERATING EXPENSES Salaries and wages ,213 Employee benefits - - 7,447 Services and supplies 22, ,659 Depreciation 9, ,781 Total Operating Expenses 32, ,100 Operating Income (Loss) (16,774) 1,209 (114,202) NONOPERATING REVENUES (EXPENSES) Miscellaneous Income Income (Loss) Before Transfers (16,774) 1,209 (114,046) TRANSFERS IN (OUT) Transfers out - - (310) Change in Net Position (16,774) 1,209 (114,356) NET POSITION, JULY 1 253,063 33,715 1,566,650 Prior Period Adjustment - - (6,561) NET POSITION, JULY 1, restated 253,063 33,715 1,560,089 NET POSITION, JUNE 30 $ 236,289 $ 34,924 $ 1,445,

128 Paradise Sewer District Fund McDermitt Water District Fund Total $ 12,607 $ 79,824 $ 143,159-39,830 39, , , , ,336 50, ,965 12,491 17,534 60, ,076 5,758 28,323 92,728 23, , ,111 (11,031) 5,726 (135,072) (11,031) 5,726 (134,916) - - (310) (11,031) 5,726 (135,226) 139,504 1,074,304 3,067,236 - (10,170) (16,731) 139,504 1,064,134 3,050,505 $ 128,473 $ 1,069,860 $ 2,915,

129 Combining Statement of Cash Flows Nonmajor Enterprise Funds For the Year Ended June 30, 2018 Quinn River Television District Fund CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers 15,389 Denio Television District Fund Golconda Water District Fund $ $ 1,491 $ 33,062 Cash payments for personnel costs - - (36,827) Cash payments for services and supplies (20,722) (202) (59,279) Net Cash Provided (Used) by Operating Activities (5,333) 1,289 (63,044) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers to other funds - - (310) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchases of capital assets (14,305) - - CASH FLOWS FROM INVESTING ACTIVITIES: Interest received Net Increase (Decrease) in Cash and Investments (19,638) 1,289 (63,198) CASH AND INVESTMENTS, JULY 1 211,754 33, ,262 CASH AND INVESTMENTS, JUNE 30 $ 192,116 $ 34,924 $ 40,064 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ (16,774) $ 1,209 $ (114,202) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operations Depreciation 9, ,781 Change in assets and liabilities: (Increase) decrease in: Accounts receivable - - (836) Increase (decrease) in: Accounts payable 1,655-2,380 Accrued salaries and benefits Total adjustments 11, ,158 Net Cash Provided (Used) by Operating Activities $ (5,333) $ 1,289 $ (63,044) 124

130 Paradise Sewer District Fund McDermitt Water District Fund Total $ 12,607 $ 78,477 $ 141,026 (346) (26,279) (63,452) (8,732) (48,854) (137,789) 3,529 3,344 (60,215) - - (310) - (70,527) (84,832) ,529 (67,183) (145,201) 18, , ,648 $ 22,451 $ 81,892 $ 371,447 $ (11,031) $ 5,726 $ (135,072) 5,758 28,323 92,728 - (41,177) (42,013) 8,802 11,450 24,287 - (978) (145) 14,560 (2,382) 74,857 $ 3,529 $ 3,344 $ (60,215) 125

131 Quinn River Television District Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Original Budget Final Budget 2018 Actual Variance to Final Budget 2017 Actual OPERATING REVENUES Charges for Services: User fees $ 14,000 $ 14,000 $ 15,339 $ 1,339 $ 17,039 Miscellaneous income Total Operating Revenues 14,000 14,000 15,389 1,389 17,109 OPERATING EXPENSES Employee benefits Services and supplies 15,720 15,720 22,377 (6,657) 2,169 Depreciation 10,000 10,000 9, ,056 Capital outlay 23,000 23,000-23,000 - Total Operating Expenses 48,720 48,720 32,163 16,557 11,395 Operating Income (Loss) $ (34,720) $ (34,720) (16,774) $ 17,946 5,714 Net position, July 1 253, ,349 Net position, June 30 $ 236,289 $ 253,

132 Quinn River Television District Fund Schedule of Cash Flows For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Actual Actual CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 15,389 $ 17,109 Cash payments for personnel costs - (170) Cash payments for services and supplies (20,722) (2,169) Net Cash Provided (Used) by Operating Activities (5,333) 14,770 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchases of capital assets (14,305) - Net Increase (Decrease) in Cash and Investments (19,638) 14,770 CASH AND INVESTMENTS, JULY 1 211, ,984 CASH AND INVESTMENTS, JUNE 30 $ 192,116 $ 211,754 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ (16,774) $ 5,714 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 9,786 9,056 Change in assets and liabilities: Increase (decrease) in: Accounts payable 1,655 - Total Adjustments 11,441 9,056 Net Cash Provided (Used) by Operating Activities $ (5,333) $ 14,

133 Denio Television District Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual OPERATING REVENUES Charges for Services: User fees $ 1,600 $ 1,600 $ 1,491 $ (109) 1,804 OPERATING EXPENSES Services and supplies 1,500 1, , Depreciation Total Operating Expenses 2,000 2, , Operating Income (Loss) $ (400) $ (400) 1,209 $ 1,609 1,604 Net position, July 1 33,715 32,111 Net position, June 30 $ 34,924 $ 33,

134 Denio Television District Fund Schedule of Cash Flows For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Actual Actual CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 1,491 $ 1,804 Cash payments for services and supplies (202) (40) Net Cash Provided (Used) by Operating Activities 1,289 1,764 Net Increase (Decrease) in Cash and Investments 1,289 1,764 CASH AND INVESTMENTS, JULY 1 33,635 31,871 CASH AND INVESTMENTS, JUNE 30 $ 34,924 $ 33,635 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 1,209 $ 1,604 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation Total Adjustments Net Cash Provided (Used) by Operating Activities $ 1,289 $ 1,

135 Golconda Water District Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual OPERATING REVENUES Charges for Services: User fees $ 33,000 $ 33,000 $ 33,898 $ 898 $ 29,238 OPERATING EXPENSES Salaries and wages 40,141 40,141 30,213 9,928 2,396 Employee benefits 10,108 10,108 7,447 2, Services and supplies 99,500 99,500 61,659 37,841 40,332 Depreciation 50,000 50,000 48,781 1,219 48,781 Total Operating Expenses 199, , ,100 51,649 92,465 Operating Income (Loss) (166,749) (166,749) (114,202) 52,547 (63,227) NONOPERATING REVENUES (EXPENSES) Miscellaneous income (44) - Income Before Transfers (166,549) (166,549) (114,046) 52,503 (63,227) TRANSFERS IN (OUT) Transfers out - - (310) (310) - Change in Net Position $ (166,549) $ (166,549) (114,356) $ 52,193 (63,227) Net position, July 1 1,566,650 1,629,877 Prior period adjustment (6,561) - Net position, July 1, restated 1,560,089 1,629,877 Net position, June 30 $ 1,445,733 $ 1,566,

136 Golconda Water District Fund Schedule of Cash Flows For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Actual Actual CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 33,062 $ 30,380 Cash payments for personnel costs (36,827) (3,096) Cash payments for services and supplies (59,279) (45,358) Net Cash Provided (Used) by Operating Activities (63,044) (18,074) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers to other funds (310) - CASH FLOWS FROM INVESTING ACTIVITIES: Interest received Net Increase (Decrease) in Cash and Investments (63,198) (18,074) CASH AND INVESTMENTS, JULY 1 103, ,336 CASH AND INVESTMENTS, JUNE 30 $ 40,064 $ 103,262 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ (114,202) $ (63,227) Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 48,781 48,781 Change in assets and liabilities: (Increase) decrease in: Accounts receivable (836) 1,142 Increase (decrease) in: Accounts payable 2,380 (5,026) Accrued salaries and benefits Total Adjustments 51,158 45,153 Net Cash Provided (Used) by Operating Activities $ (63,044) $ (18,074) 131

137 Paradise Sewer District Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual OPERATING REVENUES Charges for Services: User fees $ 13,500 $ 13,500 $ 12,607 $ (893) $ 13,843 OPERATING EXPENSES Salaries and wages (267) 273 Employee benefits Services and supplies 6,725 6,725 17,534 (10,809) 4,402 Depreciation 5,800 5,800 5, ,934 Total Operating Expenses 13,025 13,025 23,638 (10,613) 10,944 Operating Income (Loss) $ 475 $ 475 (11,031) $ (11,506) 2,899 Net position, July 1 139, ,605 Net position, June 30 $ 128,473 $ 139,

138 Paradise Sewer District Fund Schedule of Cash Flows For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Actual Actual CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 12,607 $ 13,843 Cash payments for personnel costs (346) (608) Cash payments for services and supplies (8,732) (5,515) Net Cash Provided (Used) by Operating Activities 3,529 7,720 Net Increase (Decrease) in Cash and Investments 3,529 7,720 CASH AND INVESTMENTS, JULY 1 18,922 11,202 CASH AND INVESTMENTS, JUNE 30 $ 22,451 $ 18,922 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ (11,031) $ 2,899 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 5,758 5,934 Increase (decrease) in: Accounts payable 8,802 (1,113) Total Adjustments 14,560 4,821 Net Cash Provided (Used) by Operating Activities $ 3,529 $ 7,

139 McDermitt Water District Fund Schedule of Revenues, Expenses, and Changes in Net Position - Budget and Actual For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) 2018 Original Budget Final Budget Actual Variance to Final Budget 2017 Actual OPERATING REVENUES Charges for Services: User fees $ 60,000 $ 60,000 79,824 $ 19,824 $ 80,274 Grants ,830 39,830 - Total Operating Revenues 60,000 60, ,654 59,654 80,274 OPERATING EXPENSES Salaries and wages 15,000 15,000 20,336 (5,336) 5,119 Employee benefits 4,635 4,635 4,965 (330) 1,301 Services and supplies 42,467 42,467 60,304 (17,837) 38,491 Other 50,000 50,000-50,000 - Depreciation 20,100 20,100 28,323 (8,223) 28,038 Total Operating Expenses 132, , ,928 18,274 72,949 Operating Income (Loss) (72,202) (72,202) 5,726 77,928 7,325 Change in Net Position $ (72,202) $ (72,202) 5,726 $ 77,928 7,325 Net position, July 1 1,074,304 1,066,979 Prior period adjustment (10,170) - Net position, July 1, restated 1,064,134 1,066,979 Net position, June 30 $ 1,069,860 $ 1,074,

140 McDermitt Water District Fund Schedule of Cash Flows For the Year Ended June 30, 2018 (With comparative actual amounts for the fiscal year ended June 30, 2017) Actual Actual CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 78,477 $ 80,787 Cash payments for personnel costs (26,279) (5,923) Cash payments for services and supplies (48,854) (44,091) Net Cash Provided (Used) by Operating Activities 3,344 30,773 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchases of capital assets (70,527) - Grant receipts - 38,212 Net Cash Provided (Used) by Capital and Related Financing Activities (70,527) 38,212 Net Increase (Decrease) in Cash and Investments (67,183) 68,985 CASH AND INVESTMENTS, JULY 1 149,075 80,090 CASH AND INVESTMENTS, JUNE 30 $ 81,892 $ 149,075 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating Income (Loss) $ 5,726 $ 7,325 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Depreciation 28,323 28,038 Change in assets and liabilities: (Increase) decrease in: Accounts receivable (41,177) 513 Increase (decrease) in: Accounts payable 11,450 (5,600) Accrued salaries and benefits (978) 497 Total Adjustments (2,382) 23,448 Net Cash Provided (Used) by Operating Activities $ 3,344 $ 30,

141 Agency Funds Combining Statement of Changes in Assets and Liabilities For the Year Ended June 30, 2018 Balance Balance July 01, 2017 Additions Deductions June 30, 2018 City of Winnemucca: Assets: Cash and investments $ - $ 2,044,798 $ 2,013,851 $ 30,947 Liabilities: Due to other governments $ - $ 2,044,798 $ 2,013,851 $ 30,947 Court Ordered Restitution: Assets: Cash and investments $ 59,058 $ 27,474 $ 22,051 $ 64,481 Liabilities: Funds held in trust for others $ 59,058 $ 27,474 $ 22,051 $ 64,481 District Court Bail: Assets: Cash and investments $ 124,248 $ - $ 23,375 $ 100,873 Liabilities: Funds held in trust for others $ 124,248 $ - $ 23,375 $ 100,873 General Trust Fund: Assets: Cash and investments $ 15,834 $ - $ - $ 15,834 Liabilities: Due to other governments $ 15,834 $ - $ - $ 15,834 Humboldt County General Hospital: Assets: Cash and investments $ - $ 6,340,956 $ 6,254,795 $ 86,161 Liabilities: Due to other governments $ - $ 6,340,956 $ 6,254,795 $ 86,161 Humboldt County School District: Assets: Cash and investments $ 212 $ 10,534,726 $ 10,506,446 $ 28,492 Liabilities: Due to other governments $ 212 $ 10,534,726 $ 10,506,446 $ 28,492 (continued) 136

142 Agency Funds Combining Statement of Changes in Assets and Liabilities For the Year Ended June 30, 2018 Balance Balance July 01, 2017 Additions Deductions June 30, 2018 Humboldt Development Authority: Assets: Cash and investments $ 272,700 $ 68,441 $ 117,724 $ 223,417 Liabilities: Due to other governments $ 272,700 $ 68,441 $ 117,724 $ 223,417 Justice Court Bail: Assets: Cash and investments $ 79,468 $ - $ 30,954 $ 48,514 Liabilities: Funds held in trust for others $ 79,468 $ - $ 30,954 $ 48,514 Kings River GID: Assets: Cash and investments $ 12,627 $ 14,529 $ 15,441 $ 11,715 Liabilities: Due to other governments $ 12,627 $ 14,529 $ 15,441 $ 11,715 McDermitt Fire Protection District: Assets: Cash and investments $ 54,700 $ 23,302 $ 14,539 $ 63,463 Liabilities: Due to other governments $ 54,700 $ 23,302 $ 14,539 $ 63,463 Orovada Community Services District: Assets: Cash and investments $ 176,069 $ 63,996 $ 37,350 $ 202,715 Liabilities: Due to other governments $ 176,069 $ 63,996 $ 37,350 $ 202,715 Orovada Fire Protection District: Assets: Cash and investments $ 357,364 $ 90,616 $ 61,386 $ 386,594 Liabilities: Due to other governments $ 357,364 $ 90,616 $ 61,386 $ 386,594 Orovada General Improvement District: Assets: Cash and investments $ 189,782 $ 37,078 $ 77,259 $ 149,601 Liabilities: Due to other governments $ 189,782 $ 37,078 $ 77,259 $ 149,601 (continued) 137

143 Agency Funds Combining Statement of Changes in Assets and Liabilities For the Year Ended June 30, 2018 Balance Balance July 01, 2017 Additions Deductions June 30, 2018 Orovada Rodent Control District: Assets: Cash and investments $ 59,306 $ 20,530 $ 22,806 $ 57,030 Liabilities: Due to other governments $ 59,306 $ 20,530 $ 22,806 $ 57,030 Paradise Weed Control District: Assets: Cash and investments $ 194,904 $ 90,600 $ 107,380 $ 178,124 Liabilities: Due to other governments $ 194,904 $ 90,600 $ 107,380 $ 178,124 Pueblo Fire Protection District: Assets: Cash and investments $ 609,189 $ 116,000 $ 13,267 $ 711,922 Liabilities: Due to other governments $ 609,189 $ 116,000 $ 13,267 $ 711,922 Range Improvement: Assets: Cash and investments $ 24,426 $ 38,205 $ 7,590 $ 55,041 Liabilities: Due to other governments $ 24,426 $ 38,205 $ 7,590 $ 55,041 State Department of Wildlife: Assets: Cash and investments $ 1,986 $ 6,198 $ 2,354 $ 5,830 Liabilities: Due to other governments $ 1,986 $ 6,198 $ 2,354 $ 5,830 State of Nevada Trust: Assets: Cash and investments $ 132,689 $ 2,318,789 $ 2,264,504 $ 186,974 Liabilities: Due to other governments $ 132,689 $ 2,318,789 $ 2,264,504 $ 186,974 (continued) 138

144 Agency Funds Combining Statement of Changes in Assets and Liabilities For the Year Ended June 30, 2018 Balance Balance July 01, 2017 Additions Deductions June 30, 2018 Sheriff's Commissary: Assets: Cash and investments $ 81,832 $ - $ 1,157 $ 80,675 Liabilities: Funds held in trust for others $ 81,832 $ - $ 1,157 $ 80,675 Treasurer Trustee Acct. Assets: Cash and investments $ 21,254 $ 2 $ - $ 21,256 Liabilities: Funds held in trust for others $ 21,254 $ 2 $ - $ 21,256 Winnemucca Convention and Visitors Authority: Assets: Cash and investments $ 13,064 $ 532,895 $ 486,029 $ 59,930 Liabilities: Due to other governments $ 13,064 $ 532,895 $ 486,029 $ 59,930 Winnemucca Rural Fire Protection District: Assets: Cash and investments $ 1,108,784 $ 257,087 $ 163,262 $ 1,202,609 Liabilities: Due to other governments $ 1,108,784 $ 257,087 $ 163,262 $ 1,202,609 Other Collections: Assets: Cash and investments $ 183,349 $ 112,310 $ 183,348 $ 112,311 Liabilities: Due to other governments $ 183,349 $ 112,310 $ 183,348 $ 112,311 Totals, All Agency Funds: Assets: Cash and investments $ 3,772,845 $ 22,738,532 $ 22,426,868 $ 4,084,509 Liabilities: Due to other governments 3,406,985 22,711,056 22,349,331 3,768,710 Funds held in trust for others 365,860 27,476 77, ,799 Total Liabilities $ 3,772,845 $ 22,738,532 $ 22,426,868 $ 4,084,

145 ~ DRAKE R se~ass clates, LLc I.iii.ii CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor's 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 To the Honorable Board of Commissioners of Humboldt County, Nevada We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the govemmentar activities, the business-type activities, each major fund, and the aggregate remaining fund information of Humboldt County, Nevada, (the County) as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the County's basic financial statements, and have issued our report thereon dated February 25, Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the County's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County's internal control. Accordingly, we do not express an opinion on the effectiveness of the County's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or sign ificant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs that we consider to be significant deficiencies as items 20 I 8-00 I and

146 Compliance and Other Matters As part of obtaining reasonable assurance about whether the County's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and which are described in the accompanying schedule of findings and questioned costs as items and Humboldt County's Response to Findings The County's response to the findings identified in our audit is described in the accompanying schedule of findings and questioned costs. The County's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Winnemucca, Nevada February 25,

147 --=-=- D RAK E R SE~ASSOCIATES, LLC l:i.i.il CERTIFIED PU B LIC A CCOUNTANTS Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance Required bv the Uniform Guidance To the Honorable Board of County Commissioners of Humboldt County, Nevada Report on Compliance for Each Major Federal Program We have audited Hum boldt County, Nevada's (the County) compliance with the types of compliance requirements described in the 0MB Compliance Supplement that could have a direct and material effect on each of the County's major federal programs for the year ended June 30, The County's major federa l programs are identi fied in the summary of auditor's results section of the accompanying schedule of fi nd ings and questioned costs. Management's Responsibility Management is responsible for compliance with compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the County's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards app licable to fi nancial audits contained in Government Auditing Standards, issued by the Comptro ller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uni form Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not prov ide a legal determination of the County's compliance. 142

148 Opinion on Each Major Federal Program In our opinion, the County complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, Other Matters The results of our auditing procedures disclosed significant deficiencies, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as items and Our opinion on each major federal program is not modified with respect to these matters. The County's response to the significant deficiencies identified in our audit are described in the accompanying schedule of findings and questioned costs. The County's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control over Compliance Management of the County is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify 143