YANKTON COUNTY AUDIT REPORT For the Two Years...

YANKTON COUNTY

AUDIT REPORT

For the Two Years Ended December 31, 2015

YANKTON COUNTY COUNTY OFFICIALS December 31, 2015

Board of Commissioners: Todd Woods, Chairman

Donna Freng Debra Bodenstedt

Raymon Epp Don Kettering

Auditor:

Patty Hojem

Treasurer: Patty Vavra

State’s Attorney: Robert Klimisch

Register of Deeds:

Brian Hunhoff

Sheriff: Jim Vlahakis

YANKTON COUNTY TABLE OF CONTENTS

Page 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 1 Schedule of Prior Audit Findings 3 Schedule of Current Audit Findings 3 Independent Auditor’s Report 5 Basic Financial Statements Government-wide Financial Statements: As of December 31, 2015: Statement of Net Position--Modified Cash Basis 7 For the Year Ended December 31, 2015: Statement of Activities--Modified Cash Basis 8 For the Year Ended December 31, 2014: Statement of Activities--Modified Cash Basis 9 Fund Financial Statements: Governmental Funds As of December 31, 2015: Balance Sheet--Modified Cash Basis 10 For the Year Ended December 31, 2015: Statement of Revenues, Expenditures and Changes in Fund Balances--Modified Cash Basis 12 For the Year Ended December 31, 2014: Statement of Revenues, Expenditures and Changes in Fund Balances--Modified Cash Basis 16 Fiduciary Funds As of December 31, 2015: Statement of Fiduciary Net Position--Modified Cash Basis 20 Notes to the Modified Cash Basis Financial Statements 21

Supplementary Information:

For the Year Ended December 31, 2015: Budgetary Comparison Schedule--Modified Cash Basis--General Fund 34 Budgetary Comparison Schedule--Modified Cash Basis--Road and Bridge Fund 36 For the Year Ended December 31, 2014: Budgetary Comparison Schedule--Modified Cash Basis--General Fund 37 Budgetary Comparison Schedule--Modified Cash Basis--Road and Bridge Fund 39 Notes to the Supplementary Information – Budgetary Comparison Schedules 40 Schedule of the County’s Proportionate Share of the Net Pension Liability (Asset) 41 Notes to the Supplementary Information – Pension Schedules 42 Schedule of Changes in Long-Term Debt 43

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

County Commission Yankton County Yankton, South Dakota 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 modified cash basis of accounting financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Yankton County, South Dakota (County), as of December 31, 2015, and for each of the years in the biennial period then ended, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements and have issued our report thereon dated April 4, 2017.

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 combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the County’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or 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 significant 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. However, material weaknesses may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Current Audit Findings that we consider to be a significant deficiency. We consider the deficiency described in the accompanying Schedule of Current Audit Findings as item No. 2015-001 to be a significant deficiency.

1

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, and contracts, 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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

County’s Response to Findings The County did not wish to respond to the findings identified in our audit.

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 County’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. As required by South Dakota Codified Law 4-11-11, this report is a matter of public record and its distribution is not limited.

Martin L. Guindon, CPA Auditor General April 4, 2017

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YANKTON COUNTY SCHEDULE OF PRIOR AND CURRENT AUDIT FINDINGS

SCHEDULE OF PRIOR AUDIT FINDINGS

Prior Audit Findings: The prior audit report contained no written audit findings.

SCHEDULE OF CURRENT AUDIT FINDINGS Current Audit Findings: Internal Control-Related Findings - Significant Deficiency:

Financial Reporting Errors Finding No. 2015-001: Internal accounting controls over financial reporting for the annual financial report for the year ended December 31, 2015 were inadequate resulting in inaccurate information being presented to users of the annual financial report. Analysis: We noted the following significant error in the County’s annual financial report for the year ended December 31, 2015:

In June of 2015, the County entered into an advanced crossover debt refunding transaction. The transactions related to the debt refunding were not reflected in the 2015 financial statements resulting in a net understatement of Net Position at December 31, 2015 of $4,675,751.91. In addition, Governmental Accounting Standards Board (GASB) requires that the County’s fund financial statements report major funds individually and nonmajor funds in the aggregate. The Safety Center Debt Service Fund was incorrectly reported as part of the Other Governmental Funds in 2015 when it should have been reported separately as a major fund.

Other less significant errors were also noted in the County’s annual financial report. We were able to correct the material reporting errors and therefore have issued an unmodified auditor’s opinion on the financial statements contained in this audit report. However, users of the annual financial report received information of diminished reliability.

RECOMMENDATION:

1. We recommend the County strengthen internal accounting controls over financial reporting. Management’s Response: Management chose not to respond to this finding.

3

Compliance and Other Matters:

Reconciliation of Unpaid Taxes Finding No. 2015-002: The County did not perform an annual reconciliation between the unpaid taxes on the tax list to the unpaid balance of taxes in the tax list account as required by South Dakota Codified Law (SDCL) 10-17-9. Analysis: SDCL 10-17-9 states: “…The auditor shall reconcile the unpaid taxes shown in the tax lists that are no more than six years old to the unpaid balance of taxes in the tax list account each December thirty-first or within thirty days thereafter.” We noted there were no reconciliations performed of the tax lists to the unpaid balances in the tax list accounts as required per the SDCL in 2015 or 2014.

RECOMMENDATION:

2. We recommend the County annually perform a reconciliation of unpaid taxes as required by SDCL 10-17-9.

Management’s Response: Management chose not to respond to this finding.

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INDEPENDENT AUDITOR’S REPORT County Commission Yankton County Yankton, South Dakota

Report on the Financial Statements We have audited the accompanying modified cash basis of accounting financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Yankton County, South Dakota (County), as of December 31, 2015, and for each of the years in the biennial period then ended, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the Table of Contents.

Management’s Responsibility for the Financial Statements The County’s management is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting described in Note 1.c.; this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is responsible for the design, implementation, and maintenance of internal controls 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 an opinion on these financial statements based on our audit. We conducted our audit 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. 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 financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’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 County’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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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 on a modified cash basis of accounting of the governmental activities, each major fund, and the aggregate remaining fund information of Yankton County as of December 31, 2015, and the respective changes in financial position thereof for each of the years in the biennial period then ended in accordance with the modified cash basis of accounting described in Note 1.c. to the financial statements.

Basis of Accounting We draw attention to Note 1.c. of the financial statements, which describes the basis of accounting. The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Other Matters

Supplementary Information Our audit was conducted for the purpose of forming opinions on the modified cash basis of accounting financial statements that collectively comprise the County’s basic financial statements. The Budgetary Comparison Schedules, the Schedule of the County’s Proportionate Share of the Net Pension Liability (Asset), and the Schedule of Changes in Long-Term Debt listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the 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 information is fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 4, 2017, 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 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 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.

Martin L. Guindon, CPA Auditor General April 4, 2017

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Governmental

Activities

ASSETS:

Cash and Cash Equivalents 6,118,097.43$

Cash with Fiscal Agent 4,675,751.91

TOTAL ASSETS 10,793,849.34$

NET POSITION:

Restricted For: (See Note 5)

Debt Service Purposes 4,725,322.94$

Other Purposes 1,047,308.51

Unrestricted 5,021,217.89

TOTAL NET POSITION 10,793,849.34$

The notes to the financial statements are an integral part of this statement.

YANKTON COUNTY

STATEMENT OF NET POSITION - MODIFIED CASH BASIS

December 31, 2015

Primary Government

7

Net (Expense) Revenue

and Changes in

Net Position

Operating Primary Government

Charges for Grants and Governmental

Functions/Programs Expenses Services Contributions Activities

Primary Government:

Governmental Activities:

General Government 2,517,366.02$ 418,854.15$ 144,042.34$ (1,954,469.53)$

Public Safety 3,470,768.60 1,531,247.59 279,237.53 (1,660,283.48)

Public Works 4,123,307.16 82,989.13 1,919,682.57 (2,120,635.46)

Health and Welfare 1,399,272.80 915,231.59 (484,041.21)

Culture and Recreation 146,463.31 (146,463.31)

Conservation of Natural Resources 306,033.68 4,340.89 (301,692.79)

Urban and Economic Development 234,674.13 21,559.00 (213,115.13)

*Interest on Long-Term Debt 253,430.56 (253,430.56)

Total Primary Government 12,451,316.26$ 2,974,222.35$ 2,342,962.44$ (7,134,131.47)

General Revenues:

Taxes:

* The County does not have interest expense Property Taxes 6,417,812.03

related to the functions presented above. This Wheel Tax 450,375.13

amount includes indirect interest expense State Shared Revenues 171,876.83

on general long-term debt. Grants and Contributions not Restricted to Specific Programs 5,949.00

Unrestricted Investment Earnings 26,465.66

Debt Issued 4,775,277.70

Miscellaneous Revenue 61,267.89

Total General Revenues 11,909,024.24

Change in Net Position 4,774,892.77

Net Position - Beginning 6,018,956.57

NET POSITION - ENDING 10,793,849.34$


YANKTON COUNTY

STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS

For the Year Ended December 31, 2015

Program Revenues

8

Net (Expense) Revenue

and Changes in

Net Position

Operating Primary Government

Charges for Grants and Governmental

Functions/Programs Expenses Services Contributions Activities

Primary Government:

Governmental Activities:

General Government 2,589,954.95$ 399,130.05$ 131,961.47$ (2,058,863.43)$

Public Safety 2,971,245.08 963,168.47 355,320.34 (1,652,756.27)

Public Works 4,189,004.39 103,079.68 1,725,036.25 (2,360,888.46)

Health and Welfare 1,432,602.58 817,595.63 (615,006.95)

Culture and Recreation 129,075.89 (129,075.89)

Conservation of Natural Resources 220,744.20 835.20 (219,909.00)

Urban and Economic Development 168,211.46 32,830.00 (135,381.46)

*Interest on Long-Term Debt 282,055.11 (282,055.11)

Total Primary Government 11,982,893.66$ 2,316,639.03$ 2,212,318.06$ (7,453,936.57)

General Revenues:

Taxes:

* The County does not have interest expense Property Taxes 6,301,732.71

related to the functions presented above. This Wheel Tax 448,964.86

amount includes indirect interest expense State Shared Revenues 160,990.82

on general long-term debt. Grants and Contributions not Restricted to Specific Programs 6,019.00

Unrestricted Investment Earnings 11,064.58

Miscellaneous Revenue 15,518.34

Total General Revenues 6,944,290.31

Change in Net Position (509,646.26)

Net Position - Beginning 6,612,352.83

Adjustments:

Overstatement of 2013 Tax Deed Revenue (83,750.00)

Adjusted Net Position - Beginning 6,528,602.83

NET POSITION - ENDING 6,018,956.57$


YANKTON COUNTY

STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS


Program Revenues

9

Safety Center Other Total

General Road and Bridge Debt Service Governmental Governmental

Fund Fund Fund Funds Funds

ASSETS:

Cash and Cash Equivalents 4,935,705.66$ 67,906.71$ 49,571.03$ 1,064,914.03$ 6,118,097.43$

Cash with Fiscal Agent 4,675,751.91 4,675,751.91

TOTAL ASSETS 4,935,705.66$ 67,906.71$ 4,725,322.94$ 1,064,914.03$ 10,793,849.34$

FUND BALANCES: (See Note 1.j.)

Restricted $ $ 4,725,322.94$ 1,047,308.51$ 5,772,631.45$

Assigned 3,901,246.81 67,906.71 17,605.52 3,986,759.04

Unassigned 1,034,458.85 1,034,458.85

TOTAL FUND BALANCES 4,935,705.66$ 67,906.71$ 4,725,322.94$ 1,064,914.03$ 10,793,849.34$


YANKTON COUNTY

BALANCE SHEET - MODIFIED CASH BASIS

GOVERNMENTAL FUNDS

December 31, 2015

10

(blank page)

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Revenues:

Taxes:

General Property Taxes--Current 5,323,091.45$ 346,955.05$ 619,348.26$ 54,841.10$ 6,344,235.86$

General Property Taxes--Delinquent 42,749.25 2,451.52 5,118.38 441.97 50,761.12

Penalties and Interest 12,171.54 591.82 1,438.92 125.68 14,327.96

Telephone Tax (Outside) 1,146.05 1,146.05

Mobile Home Tax 2,378.63 291.29 276.28 24.33 2,970.53

Wheel Tax 450,375.13 450,375.13

Tax Deed Revenue 3,908.78 424.21 37.52 4,370.51

Licenses and Permits 39,072.00 375.00 39,447.00

Intergovernmental Revenue:

Federal Grants 13,108.28 49,505.66 62,613.94

Federal Shared Revenue 299.48 34.59 3.09 337.16

Federal Payments in Lieu of Taxes 5,949.00 5,949.00

State Grants 106,196.78 5,000.00 111,196.78

State Shared Revenue:

Bank Franchise 54,395.44 1,729.05 56,124.49

Motor Vehicle Licenses 1,558,487.94 1,558,487.94

Prorate License Fees 77,561.74 77,561.74

Abused and Neglected Child Defense 12,389.77 12,389.77

63 3/4% Mobile Home 16,660.34 16,660.34

Secondary Road Motor Vehicle Remittances 132,536.43 132,536.43

Telecommunications Gross Receipts Tax 115,752.34 115,752.34

Motor Vehicle 1/4% 5,611.20 5,611.20

Motor Fuel Tax 8,369.26 8,369.26

911 Remittances 222,185.29 222,185.29

Other State Shared Revenue 126,066.86 126,066.86

Other Intergovernmental Revenue 8,945.73 8,945.73

Charges for Goods and Services:

General Government:

Treasurer's Fees 31,293.87 31,293.87

Register of Deeds' Fees 225,846.60 15,049.30 240,895.90

Legal Services 72,506.29 72,506.29

YANKTON COUNTY

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - MODIFIED CASH BASIS

GOVERNMENTAL FUNDS


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Clerk of Courts Fees 29,122.82 29,122.82

Other Fees 21,020.27 7,072.00 28,092.27

Public Safety:

Law Enforcement 146,996.72 146,996.72

Prisoner Care 985,811.50 985,811.50

Sobriety Testing 64,345.00 64,345.00

Other 293,054.60 293,054.60

Public Works:

Road Maintenance Contract Charges 79,387.18 79,387.18

Other 3,226.95 3,226.95

Health and Welfare:

Economic Assistance:

Poor Lien Recoveries 17,278.93 17,278.93

Health Assistance:

Ambulance 749,454.21 749,454.21

Women, Infants and Children 19,851.18 19,851.18

Mental Health Services 128,647.27 128,647.27

Conservation of Natural Resources 4,340.89 4,340.89

Fines and Forfeits:

Costs 24,150.32 24,150.32

Forfeits 15,419.45 15,419.45

Miscellaneous Revenue:

Investment Earnings 9,277.58 372.99 15,766.55 1,048.54 26,465.66

Rent 900.00 900.00

Contributions and Donations 2,000.00 2,300.00 4,300.00

Other 2,771.64 4,777.40 19,187.10 156.95 26,893.09

Total Revenues 8,233,855.26 2,810,215.95 661,594.29 715,191.03 12,420,856.53

Expenditures:

General Government:

Legislative:

Board of County Commissioners 110,754.72 110,754.72

Elections 33,239.18 33,239.18

Judicial System 316,292.45 316,292.45

Financial Administration:

Auditor 202,719.72 202,719.72

Treasurer 261,882.51 261,882.51

Data Processing 81,024.91 81,024.91

Legal Services:

State's Attorney 389,928.84 389,928.84


Other Administration:

General Government Building 142,398.00 47,932.16 190,330.16

Director of Equalization 399,989.58 399,989.58

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Register of Deeds 220,130.63 220,130.63

Veterans Service Officer 25,908.94 25,908.94

Predatory Animal 3,128.11 3,128.11

Other 277,154.79 277,154.79

Public Safety:

Law Enforcement:

Sheriff 1,025,072.54 1,025,072.54

County Jail 1,182,195.96 218,015.08 1,400,211.04

Coroner 22,728.69 22,728.69

Juvenile Detention 33,231.39 33,231.39

Protective and Emergency Services:

Emergency and Disaster Services 88,994.44 249,517.56 338,512.00

Communication Center 161,675.81 161,675.81

Other Protective and Emergency 16,680.25 16,680.25

Public Works:

Highways and Bridges:

Highways, Roads and Bridges 4,128,909.57 4,128,909.57

Transportation:

Airport 15,000.00 15,000.00

Health and Welfare:


Support of Poor 99,594.24 99,594.24

Public Welfare 5,000.00 5,000.00

Food Stamp Distribution 45,000.00 45,000.00

Other 7,155.16 7,155.16

Health Assistance:

County Nurse 57,915.68 57,915.68

Ambulance 901,659.03 901,659.03


Social Services:

Domestic Abuse 5,000.00 5,000.00

Mental Health Services:

Mentally Ill 136,070.62 136,070.62


(Continued)

YANKTON COUNTY


GOVERNMENTAL FUNDS

14

Mental Health Centers 57,206.50 57,206.50

Mental Illness Board 64,282.38 64,282.38

Culture and Recreation:

Culture:

Public Library 20,000.00 20,000.00

Historical Sites 84,500.00 84,500.00

Other 2,575.00 2,575.00

Recreation:

Senior Center 39,388.31 39,388.31

Conservation of Natural Resources:

Soil Conservation:

County Extension 152,691.77 152,691.77

Soil Conservation Districts 46,681.91 46,681.91

Weed and Pest Control 105,660.00 105,660.00

Water Conservation:

Drainage Commissions 1,000.00 1,000.00

Urban and Economic Development:

Urban Development:

Planning and Zoning 152,174.13 152,174.13

Economic Development:

Tourism, Industrial or Recreational Development 82,500.00 82,500.00

Debt Service 739,241.72 739,241.72

Total Expenditures 6,942,558.15 4,128,909.57 739,241.72 682,140.61 12,492,850.05

Excess of Revenues Over (Under) Expenditures 1,291,297.11 (1,318,693.62) (77,647.43) 33,050.42 (71,993.52)

Other Financing Sources (Uses):

Transfers In 1,100,000.00 182,200.00 1,282,200.00

Transfers Out (1,282,200.00) (1,282,200.00)

Long-Term Debt Issued 4,720,000.00 4,720,000.00

Insurance Proceeds 9,513.42 18,906.37 13,114.00 41,533.79

Sale of County Property 30,074.80 30,074.80

Premium on Bonds Issued 55,277.70 55,277.70

Total Other Financing Sources (Uses) (1,242,611.78) 1,118,906.37 4,775,277.70 195,314.00 4,846,886.29

Net Change in Fund Balance 48,685.33 (199,787.25) 4,697,630.27 228,364.42 4,774,892.77

Fund Balance - Beginning 4,887,020.33 267,693.96 27,692.67 836,549.61 6,018,956.57

FUND BALANCE - ENDING 4,935,705.66$ 67,906.71$ 4,725,322.94$ 1,064,914.03$ 10,793,849.34$


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Other Total

General Road and Bridge Governmental Governmental

Fund Fund Funds Funds

Revenues:

Taxes:

General Property Taxes--Current 5,185,327.84$ 339,189.63$ 672,632.93$ 6,197,150.40$

General Property Taxes--Delinquent 45,900.73 4,853.02 6,068.34 56,822.09

Penalties and Interest 13,049.59 1,161.35 1,732.09 15,943.03

Telephone Tax (Outside) 1,230.52 1,230.52

Mobile Home Tax 2,748.11 334.59 354.35 3,437.05

Wheel Tax 448,964.86 448,964.86

Tax Deed Revenue 20,871.17 3,781.71 2,496.74 27,149.62

Licenses and Permits 52,487.00 52,487.00


Federal Grants 19,836.00 97,690.52 117,526.52

Federal Shared Revenue 332.98 3.67 336.65

Federal Payments in Lieu of Taxes 6,019.00 6,019.00

State Grants 46,643.84 17,082.00 63,725.84


Bank Franchise 38,138.92 1,212.30 39,351.22

Motor Vehicle Licenses 1,491,852.41 1,491,852.41

Prorate License Fees 77,444.24 77,444.24


63 3/4% Mobile Home 10,726.56 10,726.56

Secondary Road Motor Vehicle Remittances 136,644.97 136,644.97

Telecommunications Gross Receipts Tax 121,639.60 121,639.60

Motor Vehicle 1/4% 5,095.70 5,095.70

Motor Fuel Tax 8,368.07 8,368.07

911 Remittances 220,751.33 220,751.33

Other Intergovernmental Revenue 66,568.63 66,568.63


General Government:

Treasurer's Fees 31,996.99 31,996.99

Register of Deeds' Fees 201,824.80 14,558.86 216,383.66

Legal Services 59,591.81 59,591.81

Clerk of Courts Fees 32,952.02 32,952.02

Other Fees 32,795.57 5,942.00 38,737.57

YANKTON COUNTY


GOVERNMENTAL FUNDS


16

Public Safety:

Law Enforcement 126,267.94 126,267.94

Prisoner Care 699,053.89 699,053.89

Sobriety Testing 55,715.00 55,715.00

Other 52,998.51 52,998.51

Public Works:

Road Maintenance Contract Charges 102,194.13 102,194.13

Other 885.55 885.55

Health and Welfare:


Poor Lien Recoveries 6,913.41 6,913.41

Health Assistance:

Ambulance 685,157.06 685,157.06


Mental Health Services 104,631.62 104,631.62

Conservation of Natural Resources 835.20 835.20

Fines and Forfeits:

Costs 23,239.13 23,239.13

Forfeits 4,730.00 4,730.00


Investment Earnings 8,958.95 1,009.59 1,096.04 11,064.58

Rent 975.00 975.00

Contributions and Donations 5,030.00 5,030.00

Other 9,820.58 83.33 44.43 9,948.34

Total Revenues 7,694,834.28 2,628,706.31 1,149,166.81 11,472,707.40

Expenditures:

General Government:

Legislative:

Board of County Commissioners 149,285.28 149,285.28

Elections 39,264.94 39,264.94

Judicial System 324,864.27 324,864.27


Auditor 179,747.13 179,747.13

Treasurer 252,976.08 252,976.08

Data Processing 91,044.87 91,044.87

Legal Services:

State's Attorney 357,637.04 357,637.04



General Government Building 217,541.66 86,082.59 303,624.25

Director of Equalization 364,239.81 364,239.81

Register of Deeds 202,716.48 202,716.48

17

Other Total

General Road and Bridge Governmental Governmental

Fund Fund Funds Funds

Veterans Service Officer 21,170.11 21,170.11

Predatory Animal 3,506.92 3,506.92

Other 282,534.97 282,534.97

Public Safety:

Law Enforcement:

Sheriff 965,067.69 965,067.69

County Jail 1,066,608.77 64,885.00 1,131,493.77

Coroner 18,606.28 18,606.28

Juvenile Detention 54,911.88 54,911.88


Emergency and Disaster Services 303,348.71 303,348.71

Communication Center 112,665.50 112,665.50

Other Protective and Emergency 19,995.68 19,995.68

Public Works:


Highways, Roads and Bridges 3,247,417.85 3,247,417.85

Transportation:

Airport 15,000.00 15,000.00

Health and Welfare:


Support of Poor 88,760.69 88,760.69

Food Stamp Distribution 45,000.00 45,000.00

Other 5,230.00 5,230.00

Health Assistance:

County Nurse 55,855.71 55,855.71

Health Services 600.00 600.00

Ambulance 963,876.43 963,876.43


Social Services:

Domestic Abuse 5,000.00 5,000.00


Mentally Ill 111,342.77 111,342.77

Mental Health Centers 90,000.00 90,000.00

Mental Illness Board 51,652.75 51,652.75


(Continued)

YANKTON COUNTY


GOVERNMENTAL FUNDS

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Culture:

Public Library 20,000.00 20,000.00

Historical Sites 86,000.00 86,000.00

Other 2,575.00 2,575.00

Recreation:

Senior Center 20,500.89 20,500.89


Soil Conservation:

County Extension 117,592.63 117,592.63

Soil Conservation Districts 39,321.45 39,321.45

Weed and Pest Control 62,830.12 62,830.12

Water Conservation:

Drainage Commissions 1,000.00 1,000.00


Urban Development:

Planning and Zoning 125,711.46 125,711.46


Tourism, Industrial or Recreational Development 42,500.00 42,500.00

Debt Service 472,930.54 193,270.37 940,879.08 1,607,079.99

Total Expenditures 7,064,978.75 3,440,688.22 1,512,860.88 12,018,527.85

Excess of Revenues Over (Under) Expenditures 629,855.53 (811,981.91) (363,694.07) (545,820.45)


Transfers In 17,450.10 300,000.00 166,312.54 483,762.64

Transfers Out (466,312.54) (17,450.10) (483,762.64)

Insurance Proceeds 30,922.90 4,711.29 35,634.19

Sale of County Property 540.00 540.00

Total Other Financing Sources (Uses) (417,399.54) 304,711.29 148,862.44 36,174.19

Net Change in Fund Balance 212,455.99 (507,270.62) (214,831.63) (509,646.26)

Fund Balance - Beginning 4,758,314.34 774,964.58 1,079,073.91 6,612,352.83

Adjustments:

Overstatement of 2013 Tax Deed Revenue (83,750.00) (83,750.00)

Adjusted Fund Balance - Beginning 4,674,564.34 774,964.58 1,079,073.91 6,528,602.83

FUND BALANCE - ENDING 4,887,020.33$ 267,693.96$ 864,242.28$ 6,018,956.57$


19

Agency

Funds

ASSETS:

Cash and Cash Equivalents 732,367.65$

TOTAL ASSETS 732,367.65$

NET POSITION:

Net Position Held in Agency Capacity 732,367.65$

TOTAL NET POSITION 732,367.65$


YANKTON COUNTY

STATEMENT OF FIDUCIARY NET POSITION - MODIFIED CASH BASIS

FIDUCIARY FUNDS

December 31, 2015

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YANKTON COUNTY NOTES TO THE MODIFIED CASH BASIS FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As discussed further in Note 1.c., these financial statements are presented on a modified cash basis of accounting. The modified cash basis of accounting differs from accounting principles generally accepted in the United States of America (GAAP). Generally accepted accounting principles include all relevant Governmental Accounting Standards Board (GASB) pronouncements.

a. Financial Reporting Entity:

The reporting entity of Yankton County (County), consists of the primary government (which includes all of the funds, organizations, institutions, agencies, departments, and offices that make up the legal entity, plus those funds for which the primary government has a fiduciary responsibility); those organizations for which the primary government is financially accountable; and other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the financial reporting entity’s financial statements to be misleading or incomplete.

b. Basis of Presentation:

Government-wide Financial Statements:

The Statement of Net Position and Statement of Activities display information about the

reporting entity as a whole. They include all funds of the reporting entity except for fiduciary funds. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues.

The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the County’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by recipients of goods and services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: Fund financial statements of the reporting entity are organized into funds, each of which is

considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into two major categories: governmental and fiduciary. An emphasis is placed on major funds within the governmental category. A fund is considered major if it is the primary operating fund of the County or it meets the following criteria:

1. Total assets, liabilities, revenues, or expenditures/expenses of the individual

governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type, and

2. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined, or

21

3. Management has elected to classify one or more governmental or enterprise funds as major for consistency in reporting from year to year, or because of public interest in the fund’s operations.

The funds of the County financial reporting entity are described below:

Governmental Funds:

General Fund – The General Fund is the general operating fund of the County. It is used to account for all financial resources except those required to be accounted for in another fund. The General Fund is always considered to be a major fund.

Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue sources (other than trusts for individuals, private organizations, or other governments or for major capital projects) that are legally restricted to expenditures for specified purposes.

Road and Bridge Fund – to account for funds credited to the road and bridge fund pursuant to SDCL 32-11-4.2 to be used by the board of county commissioners for grading, constructing, planing, dragging, and maintaining county highways and also for dragging, maintaining, and grading secondary roads. Proper equipment for dragging, grading, and maintaining highways, such as graders, tractors, drags, maintainers, and planers may be purchased from the road and bridge fund. (SDCL 32-11-2 and 32-11-4.2) This is a major fund. The remaining special revenue funds are not considered major funds: 911 Service, Jail Improvement, Emergency Management, Domestic Abuse, 24/7 Sobriety, County Building, and Modernization and Preservation Relief. These funds are reported on the fund financial statements as “Other Governmental Funds.”

Debt Service Funds – Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related costs.

Safety Center Debt Service Fund – to account for property taxes which may be used only for the payment of the debt principal, interest, and related costs. This is a major fund for 2015 only.

Capital Projects Funds – Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds or trust funds for individuals, private organizations, or other governments).

Safety Center Capital Projects Fund – to account for financial resources to be used for the construction of the new Safety Center. This is not a major fund.

Fiduciary Funds:

Fiduciary funds consist of the following sub-category and are never considered to be major

funds:

Agency Funds – Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Agency funds are used to account for the accumulation and distribution of property tax revenues and various pass-through funds.

22

c. Measurement Focus and Basis of Accounting:

Measurement focus is a term used to describe “how” transactions are recorded within the various financial statements. Basis of accounting refers to “when” revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus. The County’s basis of accounting is the modified cash basis, which is a basis of accounting other than USGAAP. Under USGAAP, transactions are recorded in the accounts when revenues are earned and liabilities are incurred. Under the modified cash basis, transactions are recorded when cash is received or disbursed. Measurement Focus: In the government-wide Statement of Net Position and Statement of Activities, governmental activities are presented using the economic resources measurement focus, applied within the limitations of the modified cash basis of accounting as defined below. In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used, applied within the limitations of the modified cash basis of accounting. Basis of Accounting: In the government-wide Statement of Net Position and Statement of Activities and the fund financial statements, governmental activities are presented using a modified cash basis of accounting. The modified cash basis of accounting involves the measurement of cash and cash equivalents and changes in cash and cash equivalents resulting from cash receipt and disbursement transactions. Under the modified cash basis of accounting, the statement of financial position reports only cash and cash equivalents (those investments with terms to maturity of 90 days (three months) or less at the date of acquisition). Under the modified cash basis of accounting, transactions are recorded in the accounts when cash and/or cash equivalents are received or disbursed and assets and liabilities are recognized to the extent that cash has been received or disbursed. The acceptable modification to the cash basis of accounting implemented by the County in these financial statements is:

Recording long-term investments in marketable securities (those with maturities more than 90-days (three months) from the date of acquisition) acquired with cash assets at cost.

As a result of the use of this modified cash basis of accounting, certain assets and their related revenues (such as accounts receivable and revenue for billed or provided services not yet collected) and certain liabilities and their related expenses (such as accounts payable and expenses for goods or services received but not yet paid, and accrued expenses and liabilities) are not recorded in these financial statements.

If the County applied USGAAP, the fund financial statements for governmental funds would

use the modified accrual basis of accounting. All government-wide financial statements would be presented on the accrual basis of accounting.

d. Deposits and Investments: For the purpose of financial reporting, “cash and cash equivalents” includes all demand and

savings accounts and certificates of deposit or short-term investments with a term to maturity

23

at date of acquisition of three months or less. Investments in open-end mutual fund shares, or similar investments in external investment pools, are also considered to be cash equivalents.

e. Capital Assets:

Capital assets include land, buildings, machinery and equipment, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Infrastructure assets are long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years than most capital assets.

As discussed in Note 1.c. above, the government-wide Statement of Net Position and Statement of Activities and the fund financial statements are presented using a modified cash basis of accounting. The County has not elected to modify their cash basis presentation by recording capital assets arising from cash transactions and depreciating those assets where appropriate so any capital assets owned by the County and the related depreciation are not reported on the financial statements of the County.

f. Long-Term Liabilities:

Long-term liabilities include, but are not limited to, General Obligation Bonds, Revenue Bonds, Certificates of Participation, Financing (Capital Acquisition) Leases, and Compensated Absences. As discussed in Note 1.c. above, the government-wide Statement of Net Position and Statement of Activities and the fund financial statements are presented using a modified cash basis of accounting. The County has not elected to modify their cash basis presentation by recording long-term debt arising from cash transactions so any outstanding indebtedness is not reported on the financial statements of the County. The County does report the principal and interest payments on long-term debt as Debt Service expenditures on the Statement of Revenues, Expenditures and Changes in Fund Balances. On the Statement of Activities the principal portion of these Debt Service payments are reported within the appropriate expense function while the interest portion is reported as Interest on Long-Term Debt. The County has presented as Supplementary Information a Schedule of Changes in Long-Term Debt along with related notes that include details of any outstanding Long-Term Debt.

g. Program Revenues:

Program revenues derive directly from the program itself or from parties other than the County’s taxpayers or citizenry, as a whole. Program revenues are classified into three categories, as follows:

1. Charges for services – These arise from charges to customers, applicants, or others

who purchase, use, or directly benefit from the goods, services, or privileges provided, or are otherwise directly affected by the services.

2. Program-specific operating grants and contributions – These arise from mandatory and voluntary non-exchange transactions with other governments, organizations, or individuals that are restricted for use in a particular program.

3. Program-specific capital grants and contributions – These arise from mandatory and voluntary non-exchange transactions with other governments, organizations, or individuals that are restricted for the acquisition of capital assets for use in a particular program.

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h. Equity Classifications: Government-wide Financial Statements: Equity is classified as Net Position and is displayed in two components:

1. Restricted Net Position – Consists of net position with constraints placed on their use either by (a) external groups such as creditors, grantors, contributors, or laws and regulations of other governments; or (b) law through constitutional provisions or enabling legislation.

2. Unrestricted Net Position – All other net position that do not meet the definition of Restricted Net Position.

Fund Financial Statements: Governmental fund equity is classified as fund balance, and may distinguish between

“Nonspendable”, “Restricted”, “Committed”, “Assigned”, and “Unassigned” components. Agency Funds have no fund equity. The Net Position is reported as Net Position Held in Agency Capacity.

i. Application of Net Position:

It is the County’s policy to first use restricted net position, prior to the use of unrestricted net

position, when an expense is incurred for purposes for which both restricted and unrestricted net positions are available.

j. Fund Balance Classification Policies and Procedures:

In accordance with Government Accounting Standards Board (GASB) No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, the County classifies governmental fund balances as follows: Nonspendable – includes fund balance amounts that cannot be spent either because it is

not in spendable form or because of legal or contractual constraints. Restricted – includes fund balance amounts that are constrained for specific purposes

which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation.

Committed – includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority and does not lapse at year-end.

Assigned – includes fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. Fund Balance may be assigned by the County Commissioners.

Unassigned – includes positive fund balance within the General Fund which has not been classified within the above mentioned categories and negative fund balances in other governmental funds.

The County uses restricted/committed amounts first when both restricted and unrestricted fund balance is available unless there are legal documents/contracts that prohibit doing this, such as a grant agreement requiring dollar for dollar spending. Additionally, the Government would first use committed, then assigned, and lastly unassigned amounts of unrestricted fund balance when expenditures are made. The Government does not have a formal minimum fund balance policy.

25

The purpose of each major special revenue fund and revenue source is listed below: Major Special Revenue Fund Revenue Source Road and Bridge Fund Motor Vehicle Licenses, Grants, Taxes, and

Intergovernmental Revenue

26

A schedule of fund balances is provided as follows:

YANKTON COUNTY DISCLOSURE OF FUND BALANCES REPORTED ON BALANCE SHEET

GOVERNMENTAL FUNDS DECEMBER 31, 2015

Road

Safety Center Other

Total

General

and Bridge

Debt Service Governmental

Governmental

Fund

Fund

Fund Funds

Funds

Fund Balances:

Restricted For: County Buildings and Structures Purposes $ $ $

$ 150,875.03 $ 150,875.03

24/7 Sobriety Purposes 87,892.88 87,892.88 Modernization and Preservation Relief Purposes

53,407.58 53,407.58

Safety Center Capital Projects Purposes

6,069.48 6,069.48

Jail Building Purposes 283,299.30 283,299.30 911 Service Purposes 434,510.91 434,510.91 Domestic Abuse Purposes 31,253.33 31,253.33 Debt Service Purposes 4,725,322.94 4,725,322.94 Assigned To: Applied to Next Year’s Budget 2,377,389.00 2,377,389.00 Capital Outlay Accumulations 66,000.00 66,000.00 Road and Bridge Purposes 291,857.81 67,906.71 359,764.52 Jail Improvement Purposes 36,000.00 36,000.00 Government Center Improvement Purposes 30,000.00

30,000.00

Fleeges Bridge Purposes 1,100,000.00 1,100,000.00 Emergency Management Purposes

17,605.52 17,605.52

Unassigned 1,034,458.85 1,034,458.85

Total Fund Balances $ 4,935,705.66 $ 67,906.71 $ 4,725,322.94 $ 1,064,914.03 $ 10,793,849.34

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2. VIOLATIONS OF FINANCE-RELATED LEGAL AND CONTRACTUAL PROVISIONS

The County is prohibited by statute from spending in excess of appropriated amounts at the department level. The following represents the significant overdrafts of the expenditures compared to appropriations:

Year Ended Year Ended 12/31/2014 12/31/2015

General Fund: Activity Data Processing $ $ 424.91 General Government Buildings $ 1,511.66 Other Administration $ 787.97 Mentally Ill $ 99,942.77 Mental Illness Board $ 51,652.75 Road and Bridge Fund: Activity Debt Service $ 193,270.37

The Board of County Commissioners plan to take the following actions to address these violations:

The overdrafts related to the Mentally Ill and Mental Illness Board in CY2014 were the result of an error that occurred from the preliminary budget to the final version of the budget. The preliminary budget did include a $100,000 budget for the Mentally Ill and $55,000 budget for the Mental Illness Board; however this was omitted from the final budget and therefore did not have proper board approval. The Debt Service overdraft was due to not adopting specific line item budget for this amount. The County will monitor the budget more closely in the future.

3. DEPOSITS AND INVESTMENTS CREDIT RISK, CONCENTRATIONS OF CREDIT RISK AND

INTEREST RATE RISK

The County follows the practice of aggregating the cash assets of various funds to maximize cash management efficiency and returns. Various restrictions on deposits and investments are imposed by statutes. These restrictions are summarized below: Deposits – The County’s cash deposits are made in qualified public depositories as defined by SDCL 4-6A-1, 7-20-1, 7-20-1.1, and 7-20-1.2, and may be in the form of demand or time deposits. Qualified depositories are required by SDCL 4-6A-3 to maintain at all times, segregated from their other assets, eligible collateral having a value equal to at least 100 percent of the public deposit accounts which exceed deposit insurance such as the FDIC and NCUA. In lieu of pledging eligible securities, a qualified public depository may furnish irrevocable standby letters of credit issued by federal home loan banks accompanied by written evidence of that bank’s public debt rating which may not be less than “AA” or a qualified public depository may furnish a corporate surety bond of a corporation authorized to do business in South Dakota. Investments – In general, SDCL 4-5-6 permits County funds to be invested only in (a) securities of the United States and securities guaranteed by the United States Government either directly or indirectly; or (b) repurchase agreements fully collateralized by securities described in (a) above; or in shares of an open-end, no-load fund administered by an investment company whose investments are in securities described in (a) above and repurchase agreements described in (b) above. Also, SDCL 4-5-9 requires investments to be in the physical custody of the political subdivision or may be deposited in a safekeeping account with any bank or trust company designated by the political subdivision as its fiscal agent.

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Credit Risk – State law limits eligible investments for the County, as discussed above. The County has no investment policy that would further limit its investment choices.

Custodial Credit Risk – Deposits – The risk that, in the event of a depository failure, the County’s

deposits may not be returned to it. The County does not have a deposit policy for custodial credit risk.

Concentration of Credit Risk – The County places no limit on the amount that may be invested in any one issuer. Interest Rate Risk – The County does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Assignment of Investment Income – State law allows income from deposits and investments to be credited to either the General Fund or the fund making the investment. The County’s policy is to credit all income from investments to the fund making the investment.

4. PROPERTY TAXES

Property taxes are levied on or before October 1, of the year preceding the start of the fiscal year. They attach as an enforceable lien on property, and become due and payable as of the following January 1, the first day of the fiscal year. Taxes are payable in two installments on or before April 30 and October 31 of the fiscal year. The County is permitted by several state statutes to levy varying amounts of taxes per $1,000 of taxable valuation on taxable real property in the County.

5. RESTRICTED NET POSITION Restricted Net Position for the year ended December 31, 2015 was as follows:

Major Purposes:

Debt Service Purposes $ 4,725,322.94

Other Purposes:

911 Service Purposes 434,510.91

County Buildings and Structures Purposes 150,875.03

Domestic Abuse Purposes 31,253.33

Jail Building Purposes 283,299.30

24/7 Sobriety Purposes 87,892.88

Modernization and Preservation Relief Purposes 53,407.58

Safety Center Capital Projects Purposes 6,069.48

Total Other Purposes 1,047,308.51

Total Restricted Net Position $ 5,772,631.45

These balances are restricted due to federal grant, debt covenants, and statutory requirements.

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6. INTERFUND TRANSFERS Interfund transfers for the year ended December 31, 2015 were as follows:

Transfers To:

Road Other

and Bridge Governmental

Transfers From: Fund Funds Total

Major Funds:

General Fund $ 1,100,000.00 $ 182,200.00 $ 1,282,200.00 Interfund transfers for the year ended December 31, 2014 were as follows:

Transfers To:

Road Other

General and Bridge Governmental

Transfers From: Fund Fund Funds Total

Major Funds:

General Fund $ $ 300,000.00 $ 166,312.54 $ 466,312.54

Other Governmental Funds:

WIC Fund 17,450.10 17,450.10

Total $ 17,450.10 $ 300,000.00 $ 166,312.54 $ 483,762.64

The County typically budgets transfers to the Road and Bridge Fund and the Emergency Management Fund (Other Governmental Funds) to conduct the indispensable functions of the County. In 2014, the County closed the Women, Infants and Children (WIC) Fund and will subsequently operate this program though the General Fund.

7. RETIREMENT PLAN

Plan Information: All employees, working more than 20 hours per week during the year, participate in the South Dakota Retirement System (SDRS), a cost sharing, multiple employer defined benefit pension plan administered by SDRS to provide retirement benefits for employees of the State of South Dakota and its political subdivisions. The SDRS provides retirement, disability, and survivor benefits. The right to receive retirement benefits vests after three years of credited service. Authority for establishing, administering and amending plan provisions are found in SDCL 3-12. The SDRS issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained at http://sdrs.sd.gov/publications.aspx or by writing to the SDRS, P.O. Box 1098, Pierre, SD 57501-1098 or by calling (605) 773-3731. Benefits Provided: SDRS has three different classes of employees, Class A, Class B public safety and Class B judicial. Class A retirement benefits are determined as 1.7 percent prior to 2008 and 1.55 percent thereafter of the employee’s final 3-year average compensation times the employee’s years of service. Employees with 3 years of service are eligible to retire at age 55. Class B public safety benefits are determined as 2.4 percent for service prior to 2008 and 2.0 percent thereafter of employee final average compensation. Class B judicial benefits are determined as 3.733 percent for service prior to 2008 and 3.333 percent thereafter of employee final average compensation. All Class B employees with 3 years of service are eligible to retire at age 45. Employees are eligible for service-related disability benefits regardless of length of service. Three years of service is required

30

http://sdrs.sd.gov/publications.aspx

for nonservice-related disability eligibility. Disability benefits are determined in the same manner as retirement benefits but are payable immediately without an actuarial reduction. Death benefits are a percent of the employee’s final average salary. The annual increase in the amount of the SDRS benefits payable on each July 1

st is indexed to the

consumer price index (CPI) based on SDRS funded status:

If the SDRS market value funded ratio is 100% or more – 3.1% COLA If the SDRS market value funded ratio is 80.0% to 99.9%, index with the CPI

90.0% to 99.9% funded — 2.1% minimum and 2.8% maximum COLA 80.0% to 90.0% funded — 2.1% minimum and 2.4% maximum COLA

If the SDRS market value funded ratio is less than 80% -- 2.1% COLA

All benefits except those depending on the Member’s Accumulated Contributions are annually increased by the Cost-of-Living Adjustment. Contributions: Per SDCL 3-12, contribution requirements of the active employees and the participating employers are established and may be amended by the SDRS Board. Covered employees are required by state statute to contribute the following percentages of their salary to the plan; Class A Members, 6.0% of salary; Class B Judicial Members, 9.0% of salary; and Class B Public Safety Members, 8.0% of salary. State statute also requires the employer to contribute an amount equal to the employee’s contribution. State statute also requires the employer to make an additional contribution in the amount of 6.2 percent for any compensation exceeding the maximum taxable amount for social security for general employees only. The County’s share of contributions to the SDRS for the calendar years ended December 31, 2015, 2014, and 2013 were $258,459.45, $226,424.13, and $221,511.25, respectively, equal to the required contributions each year.

Pension Liabilities (Assets): At June 30, 2015, SDRS is 104.1% funded and accordingly has a net pension asset. The

proportionate shares of the components of the net pension asset of South Dakota Retirement System, for the County as of June 30, 2015 are as follows:

Proportionate share of net position restricted for pension benefits

$ 23,631,677.36

Less proportionate share of total pension liability 22,701,613.02

Proportionate share of net pension liability (asset) $ (930,064.34)

The net pension liability (asset) was measured as of June 30, 2015 and the total pension liability

(asset) used to calculate the net pension liability (asset) was based on a projection of the County’s share of contributions to the pension plan relative to the contributions of all participating entities. At June 30, 2015, the County’s proportion was 0.2192883%, which is an increase of 0.0060278% from its proportion measured as of June 30, 2014.

Actuarial Assumptions: The total pension liability (asset) in the June 30, 2015 actuarial valuation was determined using the

following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25 percent Salary Increases 5.83 percent at entry to 3.87 percent after 30 years of service Investment Rate of Return 7.25 percent through 2016 and 7.50 percent thereafter, net of

pension plan investment expense Mortality rates were based on the RP-2000 Employee Mortality Table for males and females, as

appropriate.

31

The actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2005 through June 30, 2011. The mortality assumptions were revised based on an extension of the experience study including mortality experience through June 30, 2013.

Investment portfolio management is the statutory responsibility of the South Dakota Investment

Council (SDIC), which may utilize the services of external money managers for management of a portion of the portfolio. SDIC is governed by the Prudent Man Rule (i.e., the council should use the same degree of care as a prudent man). Current SDIC investment policies dictate limits on the percentage of assets invested in various types of vehicles (equities, fixed income securities, real estate, cash, private equity, etc.). The long-term expected rate of return on pension plan investments was determined using a method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of real rates of return for each major asset class included in the pension plan’s target asset allocation as of June 30, 2015 (see the discussion of the pension plan’s investment policy) are summarized in the following table using geometric means:

Asset Class

Target Allocation

Long-Term Expected Real Rate of Return

Global Equity 61.0% 4.5% Fixed Income 27.0% 1.8% Real Estate 10.0% 5.2% Cash 2.0% 0.0%

Total 100%

Discount Rate: The discount rate used to measure the total pension liability (asset) was 7.25 percent through 2016

and 7.50% thereafter. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that matching employer contributions from will be made at rates equal to the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all future benefit payments of current plan members. 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 (asset).

Sensitivity of liability (asset) to changes in the discount rate: The following presents the County’s proportionate share of net pension liability (asset) calculated

using the discount rate of 7.25 percent through 2016 and 7.50 percent thereafter, as well as what the County’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage point lower (6.25/6.50%) or 1-percentage point higher (8.25/8.50%) than the current rate:

1% Decrease

Current Discount

Rate

1%

Increase

County’s proportionate share of the net pension liability (asset)

$ 2,340,961.53

$ (930,064.34)

$ (3,597,304.23)

Pension Plan Fiduciary Net Position: Detailed information about the plan’s fiduciary net position is available in the separately issued

SDRS financial report.

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8. SIGNIFICANT CONTINGENCIES – LITIGATION

At December 31, 2015, the County was involved in several lawsuits. No determination can be made at this time regarding the potential outcome of these lawsuits. However, as discussed in the Risk Management note, the County has liability coverage for itself and its employees with a commercial insurance carrier. Therefore, no material effects are anticipated to the County as a result of the potential outcome of these lawsuits.

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. During the period ended December 31, 2015, the County managed its risks as follows: Employee Health Insurance:

The County purchases health insurance for its employees from a commercial insurance carrier. Settled claims resulting from these risks have not exceeded the liability coverage during the past three years.

Liability Insurance:

The County purchases liability insurance for risks related to torts; theft or damage to property; and errors and omissions of public officials from a commercial insurance carrier. Settled claims resulting from these risks have not exceeded the liability coverage during the past three years.

Worker's Compensation:

The County joined the South Dakota Municipal League Worker's Compensation Fund (Fund), a public entity risk pool currently operating as a common risk management and insurance program for South Dakota local government entities. The objective of the Fund is to formulate, develop, and administer, on behalf of the member organizations, a program of worker’s compensation coverage, to obtain lower costs for that coverage, and to develop a comprehensive loss control program. The County’s responsibility is to initiate and maintain a safety program to give its employees safe and sanitary working conditions and to promptly report to and cooperate with the Fund to resolve any worker’s compensation claims. The County pays an annual premium, to provide worker's compensation coverage for its employees, under a self-funded program and the premiums are accrued based on the ultimate cost of the experience to date of the Fund members. Coverage limits are set by state statute. The pool pays the first $650,000 of any claim per individual. The pool has reinsurance which covers up to statutory limits in addition to a separate combined employer liability limit of $2,000,000 per incident.

The County does not carry additional insurance to cover claims in excess of the upper limit. Settled claims resulting from these risks have not exceeded the liability coverage over the past three years. Unemployment Benefits:

The County has elected to be self-insured and retain all risk for liabilities resulting from claims for unemployment benefits.

During the two years ended December 31, 2015, seven claims were filed for unemployment benefits. These claims resulted in the payment of benefits in the amount of $7,892.36. At December 31, 2015, no claims had been filed and were outstanding. It is not anticipated that any additional claims for unemployment benefits will be filed in the next year.

33

Variance with

Final Budget

Original Final Actual Amounts Positive (Negative)

Revenues:

Taxes:

General Property Taxes--Current 5,369,895.00$ 5,369,895.00$ 5,323,091.45$ (46,803.55)$

General Property Taxes--Delinquent 44,000.00 44,000.00 42,749.25 (1,250.75)

Penalties and Interest 12,000.00 12,000.00 12,171.54 171.54

Telephone Tax (Outside) 1,100.00 1,100.00 1,146.05 46.05

Mobile Home Tax 3,000.00 3,000.00 2,378.63 (621.37)

Tax Deed Revenue 0.00 0.00 3,908.78 3,908.78

Licenses and Permits 40,000.00 40,000.00 39,072.00 (928.00)


Federal Grants 15,000.00 15,000.00 13,108.28 (1,891.72)


Federal Payments in Lieu of Taxes 6,600.00 6,600.00 5,949.00 (651.00)

State Grants 6,000.00 6,000.00 106,196.78 100,196.78


Bank Franchise 39,000.00 39,000.00 54,395.44 15,395.44

Abused and Neglected Child Defense 3,000.00 3,000.00 12,389.77 9,389.77

Telecommunications Gross Receipts Tax 150,000.00 150,000.00 115,752.34 (34,247.66)

Motor Vehicle 1/4% 5,000.00 5,000.00 5,611.20 611.20

Other Intergovernmental Revenue 50,500.00 50,500.00 8,945.73 (41,554.27)


General Government:

Treasurer's Fees 33,580.00 33,580.00 31,293.87 (2,286.13)

Register of Deeds' Fees 244,000.00 244,000.00 225,846.60 (18,153.40)

Legal Services 77,500.00 77,500.00 72,506.29 (4,993.71)

Clerk of Courts Fees 40,000.00 40,000.00 29,122.82 (10,877.18)

Other Fees 18,825.00 18,825.00 21,020.27 2,195.27

Public Safety:

Law Enforcement 151,500.00 151,500.00 146,996.72 (4,503.28)

Prisoner Care 503,000.00 503,000.00 985,811.50 482,811.50

Health and Welfare:


Poor Lien Recoveries 15,000.00 15,000.00 17,278.93 2,278.93

Health Assistance:

Ambulance 665,000.00 665,000.00 749,454.21 84,454.21

Women, Infants and Children 16,500.00 16,500.00 19,851.18 3,351.18

Mental Health Services 90,000.00 90,000.00 128,647.27 38,647.27

Conservation of Natural Resources 16,500.00 16,500.00 4,340.89 (12,159.11)

Fines and Forfeits:

Costs 13,000.00 13,000.00 24,150.32 11,150.32

Forfeits 10,000.00 10,000.00 15,419.45 5,419.45


Investment Earnings 10,000.00 10,000.00 9,277.58 (722.42)

Rent 1,000.00 1,000.00 900.00 (100.00)

Contributions and Donations 0.00 0.00 2,000.00 2,000.00

Other 10,000.00 10,000.00 2,771.64 (7,228.36)

Total Revenues 7,660,500.00 7,660,500.00 8,233,855.26 573,355.26

Expenditures:

General Government:

Legislative:

Board of County Commissioners 114,060.00 114,060.00 110,754.72 3,305.28

Contingency 200,000.00 200,000.00

Amount Transferred (174,900.00) 25,100.00

Elections 12,650.00 33,250.00 33,239.18 10.82

Judicial System 282,200.00 327,200.00 316,292.45 10,907.55


Auditor 225,793.00 225,793.00 202,719.72 23,073.28

Treasurer 281,388.00 281,388.00 261,882.51 19,505.49

Data Processing 63,000.00 80,600.00 81,024.91 (424.91)

Legal Services:

State's Attorney 391,521.00 391,521.00 389,928.84 1,592.16



General Government Building 142,331.00 142,431.00 142,398.00 33.00

Director of Equalization 400,814.00 400,814.00 399,989.58 824.42

Register of Deeds 224,602.00 224,602.00 220,130.63 4,471.37

Veterans Service Officer 31,230.00 31,230.00 25,908.94 5,321.06

Predatory Animal 3,600.00 3,600.00 3,128.11 471.89

Other 265,192.00 277,192.00 277,154.79 37.21

SUPPLEMENTARY INFORMATION

Budgeted Amounts

YANKTON COUNTY

BUDGETARY COMPARISON SCHEDULE - MODIFIED CASH BASIS

GENERAL FUND


34

Variance with

Final Budget



Budgeted Amounts

YANKTON COUNTY


GENERAL FUND


(Continued)

Public Safety:

Law Enforcement:

Sheriff 1,059,392.00 1,059,392.00 1,025,072.54 34,319.46

County Jail 1,150,559.00 1,182,259.00 1,182,195.96 63.04

Coroner 44,350.00 44,350.00 22,728.69 21,621.31

Juvenile Detention 107,543.00 107,543.00 33,231.39 74,311.61


Emergency and Disaster Services 0.00 89,000.00 88,994.44 5.56

Other Protective and Emergency 22,537.00 22,537.00 16,680.25 5,856.75

Public Works:

Transportation:

Airport 15,000.00 15,000.00 15,000.00 0.00

Health and Welfare:


Support of Poor 257,300.00 257,300.00 99,594.24 157,705.76

Public Welfare 0.00 5,000.00 5,000.00 0.00

Food Stamp Distribution 45,000.00 45,000.00 45,000.00 0.00

Other 20,000.00 20,000.00 7,155.16 12,844.84

Health Assistance:

County Nurse 74,774.00 74,774.00 57,915.68 16,858.32

Health Services 600.00 600.00 0.00 600.00

Ambulance 1,110,853.00 1,112,527.78 901,659.03 210,868.75

Women, Infants and Children 20,636.00 20,636.00 20,516.29 119.71


Mentally Ill 100,000.00 136,100.00 136,070.62 29.38

Mental Health Centers 90,000.00 90,000.00 57,206.50 32,793.50

Mental Illness Board 55,000.00 64,300.00 64,282.38 17.62


Culture:

Public Library 20,000.00 20,000.00 20,000.00 0.00

Historical Sites 85,600.00 85,600.00 84,500.00 1,100.00

Other 2,575.00 2,575.00 2,575.00 0.00

Recreation:

Senior Center 47,100.00 47,100.00 39,388.31 7,711.69


Soil Conservation:

County Extension 158,377.00 158,377.00 152,691.77 5,685.23

Soil Conservation Districts 48,562.00 48,562.00 46,681.91 1,880.09

Weed and Pest Control 129,559.00 141,123.00 105,660.00 35,463.00

Water Conservation:

Drainage Commissions 1,000.00 1,000.00 1,000.00 0.00


Urban Development:

Planning and Zoning 163,323.00 163,323.00 152,174.13 11,148.87


Tourism, Industrial or Recreational Development 40,000.00 82,500.00 82,500.00 0.00

Total Expenditures 7,528,021.00 7,675,259.78 6,942,558.15 732,701.63

Excess of Revenues Over (Under) Expenditures 132,479.00 (14,759.78) 1,291,297.11 1,306,056.89


Transfers Out (950,000.00) (1,282,200.00) (1,282,200.00) 0.00

Insurance Proceeds 0.00 0.00 9,513.42 9,513.42

Sale of County Property 5,000.00 5,000.00 30,074.80 25,074.80

Total Other Financing Sources (Uses) (945,000.00) (1,277,200.00) (1,242,611.78) 34,588.22

Net Change in Fund Balance (812,521.00) (1,291,959.78) 48,685.33 1,340,645.11

Fund Balance - Beginning 4,887,020.33 4,887,020.33 4,887,020.33 0.00

FUND BALANCE - ENDING 4,074,499.33$ 3,595,060.55$ 4,935,705.66$ 1,340,645.11$

35

Variance with

Final Budget


Revenues:

Taxes:

General Property Taxes--Current 350,759.00$ 350,759.00$ 346,955.05$ (3,803.95)$

General Property Taxes--Delinquent 3,100.00 3,100.00 2,451.52 (648.48)

Penalties and Interest 1,000.00 1,000.00 591.82 (408.18)

Mobile Home Tax 600.00 600.00 291.29 (308.71)

Wheel Tax 460,000.00 460,000.00 450,375.13 (9,624.87)

Licenses and Permits 0.00 0.00 375.00 375.00



Bank Franchise 1,300.00 1,300.00 1,729.05 429.05

Motor Vehicle Licenses 1,300,000.00 1,300,000.00 1,558,487.94 258,487.94

State Highway Fund (former 10% game) 10,000.00 10,000.00 0.00 (10,000.00)

Prorate License Fees 88,000.00 88,000.00 77,561.74 (10,438.26)

63 3/4% Mobile Home 8,000.00 8,000.00 16,660.34 8,660.34

Secondary Road Motor Vehicle Remittances 100,000.00 100,000.00 132,536.43 32,536.43

Motor Fuel Tax 10,000.00 10,000.00 8,369.26 (1,630.74)

Other State Shared Revenue 0.00 0.00 126,066.86 126,066.86


Public Works:

Road Maintenance Contract Charges 60,000.00 60,000.00 79,387.18 19,387.18

Other 5,000.00 5,000.00 3,226.95 (1,773.05)


Investment Earnings 1,100.00 1,100.00 372.99 (727.01)

Other 500.00 500.00 4,777.40 4,277.40

Total Revenues 2,399,359.00 2,399,359.00 2,810,215.95 410,856.95

Expenditures:

Public Works:


Highways, Roads and Bridges 3,779,985.00 4,144,195.25 4,128,909.57 15,285.68

Excess of Revenues Over (Under) Expenditures (1,380,626.00) (1,744,836.25) (1,318,693.62) 426,142.63


Transfers In 860,000.00 860,000.00 1,100,000.00 240,000.00


Total Other Financing Sources (Uses) 860,000.00 860,000.00 1,118,906.37 258,906.37

Net Change in Fund Balance (520,626.00) (884,836.25) (199,787.25) 685,049.00

Fund Balance - Beginning 267,693.96 267,693.96 267,693.96 0.00

FUND BALANCE - ENDING (252,932.04)$ (617,142.29)$ 67,906.71$ 685,049.00$


Budgeted Amounts

YANKTON COUNTY


ROAD AND BRIDGE FUND


36

Variance with

Final Budget


Revenues:

Taxes:

General Property Taxes--Current 5,235,301.00$ 5,235,301.00$ 5,185,327.84$ (49,973.16)$


Penalties and Interest 10,000.00 10,000.00 13,049.59 3,049.59

Telephone Tax (Outside) 0.00 0.00 1,230.52 1,230.52

Mobile Home Tax 3,000.00 3,000.00 2,748.11 (251.89)

Tax Deed Revenue 0.00 0.00 20,871.17 20,871.17

Licenses and Permits 40,000.00 40,000.00 52,487.00 12,487.00


Federal Grants 38,000.00 38,000.00 19,836.00 (18,164.00)


Federal Payments in Lieu of Taxes 6,600.00 6,600.00 6,019.00 (581.00)

State Grants 5,000.00 5,000.00 46,643.84 41,643.84


Bank Franchise 36,000.00 36,000.00 38,138.92 2,138.92


Telecommunications Gross Receipts Tax 150,000.00 150,000.00 121,639.60 (28,360.40)

Motor Vehicle 1/4% 4,000.00 4,000.00 5,095.70 1,095.70

Other Intergovernmental Revenue 40,500.00 40,500.00 66,568.63 26,068.63


General Government:

Treasurer's Fees 30,925.00 30,925.00 31,996.99 1,071.99

Register of Deeds' Fees 234,000.00 234,000.00 201,824.80 (32,175.20)

Legal Services 82,200.00 82,200.00 59,591.81 (22,608.19)

Clerk of Courts Fees 40,000.00 40,000.00 32,952.02 (7,047.98)

Other Fees 20,325.00 20,325.00 32,795.57 12,470.57

Public Safety:

Law Enforcement 150,500.00 150,500.00 126,267.94 (24,232.06)

Prisoner Care 550,700.00 550,700.00 699,053.89 148,353.89

Health and Welfare:


Poor Lien Recoveries 15,000.00 15,000.00 6,913.41 (8,086.59)

Health Assistance:

Ambulance 655,000.00 655,000.00 685,157.06 30,157.06

Women, Infants and Children 0.00 0.00 20,893.54 20,893.54

Mental Health Services 71,000.00 71,000.00 104,631.62 33,631.62

Conservation of Natural Resources 16,100.00 16,100.00 835.20 (15,264.80)

Fines and Forfeits:

Costs 10,000.00 10,000.00 23,239.13 13,239.13

Forfeits 10,000.00 10,000.00 4,730.00 (5,270.00)


Investment Earnings 15,000.00 15,000.00 8,958.95 (6,041.05)

Rent 0.00 0.00 975.00 975.00

Contributions and Donations 1,000.00 1,000.00 5,030.00 4,030.00

Other 8,000.00 8,000.00 9,820.58 1,820.58

Total Revenues 7,516,151.00 7,516,151.00 7,694,834.28 178,683.28

Expenditures:

General Government:

Legislative:

Board of County Commissioners 108,524.00 150,524.00 149,285.28 1,238.72

Contingency 200,000.00 200,000.00

Amount Transferred (98,000.00) 102,000.00

Elections 48,620.00 48,620.00 39,264.94 9,355.06

Judicial System 253,300.00 326,300.00 324,864.27 1,435.73


Auditor 234,686.00 234,686.00 179,747.13 54,938.87

Treasurer 272,935.00 272,935.00 252,976.08 19,958.92

Data Processing 60,000.00 91,300.00 91,044.87 255.13

Legal Services:

State's Attorney 371,153.00 371,153.00 357,637.04 13,515.96



General Government Building 138,530.00 216,030.00 217,541.66 (1,511.66)

Director of Equalization 369,594.00 369,594.00 364,239.81 5,354.19

Register of Deeds 206,104.00 206,104.00 202,716.48 3,387.52

Veterans Service Officer 30,349.00 30,349.00 21,170.11 9,178.89

Predatory Animal 3,507.00 3,507.00 3,506.92 0.08

Other 260,747.00 281,747.00 282,534.97 (787.97)


Budgeted Amounts

YANKTON COUNTY


GENERAL FUND


37

Variance with

Final Budget



Budgeted Amounts

YANKTON COUNTY


GENERAL FUND


(Continued)

Public Safety:

Law Enforcement:

Sheriff 1,003,719.00 1,003,719.00 965,067.69 38,651.31

County Jail 1,065,069.00 1,083,030.00 1,066,608.77 16,421.23

Coroner 17,714.00 18,714.00 18,606.28 107.72

Juvenile Detention 104,431.00 104,431.00 54,911.88 49,519.12


Other Protective and Emergency 20,750.00 20,750.00 19,995.68 754.32

Public Works:

Transportation:

Airport 15,000.00 15,000.00 15,000.00 0.00

Health and Welfare:


Support of Poor 272,750.00 272,750.00 88,760.69 183,989.31

Food Stamp Distribution 45,000.00 45,000.00 45,000.00 0.00

Other 20,000.00 20,000.00 5,230.00 14,770.00

Health Assistance:

County Nurse 71,652.00 71,652.00 55,855.71 15,796.29

Health Services 600.00 600.00 600.00 0.00

Ambulance 1,002,429.00 1,007,429.00 963,876.43 43,552.57

Women, Infants and Children 20,162.00 20,162.00 17,635.65 2,526.35


Mentally Ill 0.00 11,400.00 111,342.77 (99,942.77)

Mental Health Centers 100,000.00 100,000.00 90,000.00 10,000.00

Mental Illness Board 0.00 0.00 51,652.75 (51,652.75)


Culture:

Public Library 20,000.00 20,000.00 20,000.00 0.00

Historical Sites 84,000.00 86,000.00 86,000.00 0.00

Other 2,575.00 2,575.00 2,575.00 0.00

Recreation:

Senior Center 56,500.00 56,500.00 20,500.89 35,999.11


Soil Conservation:

County Extension 138,840.00 138,840.00 117,592.63 21,247.37

Soil Conservation Districts 47,149.00 47,149.00 39,321.45 7,827.55

Weed and Pest Control 128,164.00 128,164.00 62,830.12 65,333.88

Water Conservation:

Drainage Commissions 1,000.00 1,000.00 1,000.00 0.00


Urban Development:

Planning and Zoning 148,258.00 150,258.00 125,711.46 24,546.54


Tourism, Industrial or Recreational Development 50,000.00 50,000.00 42,500.00 7,500.00

Debt Service 65,000.00 473,142.19 472,930.54 211.65


Excess of Revenues Over (Under) Expenditures 437,340.00 (156,963.19) 629,855.53 786,818.72


Transfers In 0.00 0.00 17,450.10 17,450.10

Transfers Out (920,000.00) (920,000.00) (466,312.54) 453,687.46

Insurance Proceeds 3,000.00 3,000.00 30,922.90 27,922.90

Sale of County Property 10,000.00 10,000.00 540.00 (9,460.00)

Total Other Financing Sources (Uses) (907,000.00) (907,000.00) (417,399.54) 489,600.46

Net Change in Fund Balance (469,660.00) (1,063,963.19) 212,455.99 1,276,419.18

Fund Balance - Beginning 4,758,314.34 4,758,314.34 4,758,314.34 0.00

Adjustments:

Overstatement of 2013 Tax Deed Revenue 0.00 0.00 (83,750.00) (83,750.00)

Adjusted Fund Balance - Beginning 4,758,314.34 4,758,314.34 4,674,564.34 (83,750.00)

FUND BALANCE - ENDING 4,288,654.34$ 3,694,351.15$ 4,887,020.33$ 1,192,669.18$

38

Variance with

Final Budget


Revenues:

Taxes:

General Property Taxes--Current 342,004.00$ 342,004.00$ 339,189.63$ (2,814.37)$


Penalties and Interest 1,000.00 1,000.00 1,161.35 161.35

Mobile Home Tax 500.00 500.00 334.59 (165.41)

Wheel Tax 450,000.00 450,000.00 448,964.86 (1,035.14)

Tax Deed Revenue 0.00 0.00 3,781.71 3,781.71



Bank Franchise 1,150.00 1,150.00 1,212.30 62.30

Motor Vehicle Licenses 1,300,000.00 1,300,000.00 1,491,852.41 191,852.41

State Highway Fund (former 10% game) 10,000.00 10,000.00 0.00 (10,000.00)

Prorate License Fees 85,000.00 85,000.00 77,444.24 (7,555.76)

63 3/4% Mobile Home 5,000.00 5,000.00 10,726.56 5,726.56

Secondary Road Motor Vehicle Remittances 95,000.00 95,000.00 136,644.97 41,644.97

Motor Fuel Tax 3,000.00 3,000.00 8,368.07 5,368.07


Public Works:

Road Maintenance Contract Charges 40,000.00 40,000.00 102,194.13 62,194.13

Other 9,000.00 9,000.00 885.55 (8,114.45)


Investment Earnings 1,000.00 1,000.00 1,009.59 9.59

Other 500.00 500.00 83.33 (416.67)

Total Revenues 2,345,654.00 2,345,654.00 2,628,706.31 283,052.31

Expenditures:

Public Works:


Highways, Roads and Bridges 3,642,351.00 3,854,955.18 3,247,417.85 607,537.33

Debt Service 0.00 0.00 193,270.37 (193,270.37)


Excess of Revenues Over (Under) Expenditures (1,296,697.00) (1,509,301.18) (811,981.91) 697,319.27


Transfers In 860,000.00 860,000.00 300,000.00 (560,000.00)


Total Other Financing Sources (Uses) 860,000.00 860,000.00 304,711.29 (555,288.71)

Net Change in Fund Balance (436,697.00) (649,301.18) (507,270.62) 142,030.56

Fund Balance - Beginning 774,964.58 774,964.58 774,964.58 0.00

FUND BALANCE - ENDING 338,267.58$ 125,663.40$ 267,693.96$ 142,030.56$


Budgeted Amounts

YANKTON COUNTY


ROAD AND BRIDGE FUND


39

YANKTON COUNTY NOTES TO THE SUPPLEMENTARY INFORMATION

Schedules of Budgetary Comparisons for the General Fund and for each major Special Revenue Fund with a legally required budget

Note 1. Budgets and Budgetary Accounting:

The County follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Between the fifteenth and thirtieth days of July in each year the Board of County

Commissioners prepares and files with the County Auditor a provisional budget for the following year, containing a detailed estimate of cash balances, revenues, and expenditures.

2. Prior to the first Tuesday in September in each year a notice of budget hearing is

published once each week for two successive weeks, and the text of the provisional budget is published with the first publication.

3. The Board of County Commissioners holds a meeting for the purpose of considering

the provisional budget on or prior to the first Tuesday in September in each year. Such hearings must be concluded by October first. Changes made to the provisional budget are entered at length in the minutes of the Board of County Commissioners.

4. Before October first of each year the Board of County Commissioners adopts an

annual budget for the ensuing year. The adopted budget is filed in the office of the County Auditor.

5. After adoption by the Board of County Commissioners, the operating budget is legally

binding and actual expenditures for each purpose cannot exceed the amounts budgeted, except as indicated in number 7.

6. A line item for contingencies may be included in the annual budget. Such a line item

may not exceed 5 percent of the total county budget.

7. If it is determined during the year that sufficient amounts have not been budgeted, state statute allows the adoption of supplemental budgets.

8. Unexpended appropriations lapse at year end unless encumbered by resolution of the

Board of County Commissioners.

9. Formal budgetary integration is employed as a management control device during the year for the General Fund and special revenue funds.

40

2015 2014

County's proportion of the net pension

liability (asset) 0.2192883% 0.2132605%

County's proportionate share of net

pension liability (asset) (930,064.34)$ (1,536,454.69)$

County's covered-employee payroll 3,619,040.16$ 3,365,158.49$

County's proportionate share of the net

pension liability (asset) as a percentage

of its covered-employee payroll -25.70% -45.66%

Plan fiduciary net position as a

percentage of the total pension

liability (asset) 104.1% 107.3%


SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION

LIABILITY (ASSET)

* The amounts presented for each fiscal year were determined as of the measurement

date of the collective net pension liability (asset) which is 6/30. Until a full 10-year trend

is compiled, the County will present information for those years for which information is

available.

South Dakota Retirement System

*Last 10 Fiscal Years

YANKTON COUNTY

41

YANKTON COUNTY NOTES TO THE SUPPLEMENTARY INFORMATION

Schedule of the Proportionate Share of the Net Pension Liability (Asset)

Changes of benefit terms: No significant changes. Changes of assumptions: No significant changes.

42

Add Less

Long-Term Debt New Debt Long-Term Debt

Indebtedness January 1, 2014 Debt Retired December 31, 2015

Governmental Long-Term Debt:

Bonds Payable 5,810,000.00$ 4,720,000.00$ 795,000.00$ 9,735,000.00$

Other Long Term Debt Payable 934,224.88 934,224.88 0.00

Total 6,744,224.88$ 4,720,000.00$ 1,729,224.88$ 9,735,000.00$

Note 1 - Long-Term Debt:

Debt payable at December 31, 2015 is comprised of the following:

General Obligation Bonds:

5,015,000.00$

4,720,000.00$

Fund

Note 2 - Crossover Debt Refunding:

In 2015 the County issued $4,720,000 in General Obligation Crossover Advance Refunds Bonds, Series 2015 with

an average interest rate of 1.914 percent to refund the following:

Average Unpaid Principal at

Date Issued Project Interest Rate Time of Refunding

April 10, 2006 General Obligation Law 4.33% 5,015,000.00$

Enforcement Center Bonds-

Series 2006A


Original Final Maturity Date of December 1, 2025, Refunded from escrow on December 1, 2016,

General Obligation Crossover Advance Refunding Bonds-Series 2015, 1.15% to 3.00 Percent Interest,

Final Maturity Date of December 1, 2025, Bond Payments are made from the Safety Center Debt Service

YANKTON COUNTY

SCHEDULE OF CHANGES IN LONG-TERM DEBT

For the Two Years Ended December 31, 2015

General Obligation Law Enforcement Center Bonds-Series 2006A, 3.75% to 4.125% Percent Interest,

Bond Payments are made from the Safety Center Debt Service Fund

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YANKTON COUNTY AUDIT REPORT For the Two Years...

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Transcript of YANKTON COUNTY AUDIT REPORT For the Two Years...