i-com's financial statements audit report from the washington state auditor's office

8/8/2019 I-COM's Financial Statements Audit Report from the Washington State Auditor's Office

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August 30, 2010

Board of DirectorsI-COMOak Harbor, Washington

Report on Financial Statements

Please find attached our report on I-COMs financial statements.

We are issuing this report in order to provide information on the Centers financial condition.

Sincerely,

BRIAN SONNTAG, CGFMSTATE AUDITOR

Washington State AuditorBrian Sonntag

Insurance Building, P.O. Box 40021 Olympia, Washington 98504-0021 (360) 902-0370 TDD Relay (800) 833-6388

FAX (360) 753-0646 http://www.sao.wa.gov


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Table of Contents

I-COMIsland County

January 1, 2007 through December 31, 2008

Schedule of Audit Findings and Responses ............................................................................... 1

Independent Auditors Report on Internal Control over Financial Reporting and onCompliance and Other Matters in Accordance with Government Auditing Standards................. 4

Independent Auditors Report on Financial Statements .............................................................. 6

Financial Section ........................................................................................................................ 8


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Schedule of Audit Findings and Responses

I-COMIsland County


1. The Island County Emergency Services Communication Centers internalcontrols over financial statement preparation are inadequate.

Background:

Island County Emergency Services Communication Centers (I-COM)management, thestate Legislature, state and federal agencies and bondholders rely on the information infinancial statements and reports to make decisions. I -COM management is responsiblefor designing and following internal controls that provide reasonable assuranceregarding the reliability of financial reporting.

Our audit identified material weaknesses in controls that adversely affect the Centersability to produce reliable financial statements and notes to the financial statements.Government Auditing Standards, prescribed by the Comptroller General of the UnitedStates, require the auditor to communicate significant deficiencies, as defined below inthe Applicable Laws and Regulations section, as a finding.

Description of Condition

The following internal controls weaknesses were identified during our audit, when takentogether, represent a material weakness:

I-COM staff responsible for the preparation of the financial statements did nothave adequate technical knowledge to accurately prepare financial statements inaccordance with reporting requirements.

I-COMs financial statements contained errors that were not detected by itsemployees. The statements were not reviewed in sufficient detail to identify theerrors before they were submitted for audit.

Cause of Condition

This was I-COMs first financial statement audit. I-COM staff has not had the training orexperience necessary to accurately prepare the financial statements.

Effect of Condition

Our audit noted that:

Cash and investments were understated on the financial statements by $225,397and $180,220 in 2007 and 2008, respectively.

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Washington State Auditor's Office1


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Salaries and wages were overstated on the financial statements by $211,533and $247,030 in 2007 and 2008, respectively.

Personnel benefits were understated on the financial statements by $181,976and $245,541 in 2007 and 2008, respectively.

I-COM later corrected the errors; however, these deficiencies in internal controls make itreasonably possible more serious misstatements could occur and not be prevented ordetected by the Center in the future.

Recommendation

We recommend staff in charge of financial statement preparation receive training in thepreparation of financial statements.

In addition, we recommend I-COM perform a detailed review of the financial statements,by a knowledgeable person, to ensure the prepared annual report is accurate.

Centers Response

I-COM will follow the State Auditors recommendations. It is important to note that therewas no misappropriation of funds, and any errors in financial reporting have beencorrected to the satisfaction of the State Auditors Office. All accounts maintained byI-COM are reconciled on a monthly basis with oversight by the Director. The individualresponsible for preparing the annual financial reports will receive additional training on anongoing basis to ensure future reporting compliance.

Auditors Remarks

We thank the Center for its cooperation and assistance during the audit andacknowledge its commitment to improving the condition described. We will review thestatus of this issue during our next audit.

Applicable Laws and Regulations

RCW 43.09.200 states:

The state auditor shall formulate, prescribe, and install a system ofaccounting and reporting for all local governments, which shall be uniformfor every public institution, and every public office, and every publicaccount of the same class.

The system shall exhibit true accounts and detailed statements of fundscollected, received, and expended for account of the public for anypurpose whatever, and by all public officers, employees, or other persons.

The accounts shall show the receipt, use, and disposition of all publicproperty, and the income, if any, derived there from; all sources of publicincome, and the amounts due and received from each source; allreceipts, vouchers, and other documents kept, or required to be kept,necessary to isolate and prove the validity of every transaction; all

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Independent Auditors Report on Internal

Control over Financial Reporting and on

Compliance and Other Matters in Accordance

with Government Auditing Standards

I-COMIsland County



We have audited the financial statements of I-COM, Island County, Washington, as of and forthe years ended December 31, 2008 and 2007, and have issued our report thereon datedApril 15, 2010.

We conducted our audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to the financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.

INTERNAL CONTROL OVER FINANCIAL REPORTING

In planning and performing our audits, we considered the Centers internal control over financialreporting as a basis for designing our auditing procedures for the purpose of expressing ouropinion on the financial statements, but not for the purpose of expressing an opinion on theeffectiveness of the Centers internal control over financial reporting. Accordingly, we do notexpress an opinion on the effectiveness of the Centers internal control over financial reporting.

Our consideration of internal control over financial reporting was for the limited purposedescribed in the preceding paragraph and would not necessarily identify all deficiencies ininternal control over financial reporting that might be significant deficiencies or materialweaknesses. However, as discussed below, we identified certain deficiencies involving theinternal control over financial reporting that we consider to be significant deficiencies.

A control deficiency exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, toprevent or detect misstatements on a timely basis. A significant deficiency is a controldeficiency, or combination of control deficiencies, that adversely affects the Center's ability toinitiate, authorize, record, process or report financial data reliably in accordance with generallyaccepted accounting principles such that there is more than a remote likelihood that amisstatement of the Center's financial statements that is more than inconsequential will not beprevented or detected by the Center's internal control over financial reporting.

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A material weakness is a significant deficiency, or combination of significant deficiencies, thatresults in more than a remote likelihood that a material misstatement of the financial statementswill not be prevented or detected by the Center's internal control. Our consideration of theinternal control over financial reporting was for the limited purpose described in the firstparagraph of this section and would not necessarily identify all deficiencies in the internal controlthat might be significant deficiencies and, accordingly, would not necessarily disclose all

significant deficiencies that are also considered to be material weaknesses. We consider thedeficiencies described in the accompanying Schedule of Audit Findings and Responses asFinding 1 to be material weaknesses.

COMPLIANCE AND OTHER MATTERS

As part of obtaining reasonable assurance about whether the Center s financial statements arefree of material misstatement, we performed tests of the Center s compliance with certainprovisions of laws, regulations, contracts and grant agreements, noncompliance with whichcould 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 ouraudit, and accordingly, we do not express such an opinion.

The results of our tests disclosed no instances of noncompliance or other matters that arerequired to be reported under Government Auditing Standards.

The Centers response to the finding identified in our audit is described in the accompanyingSchedule of Audit Findings and Responses. We did not audit the Centers response and,accordingly, we express no opinion on it.

This report is intended for the information and use of management and the Board of Directors.However, this report is a matter of public record and its distribution is not limited. It also servesto disseminate information to the public as a reporting tool to help citizens assess governmentoperations.


April 15, 2010

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Independent Auditors Report on Financial

Statements

I-COMIsland County



We have audited the accompanying financial statements of I-COM, Island County, Washington,for the years ended December 31, 2008 and 2007. These financial statements are the

responsibility of the Centers management. Our responsibility is to express an opinion on thesefinancial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in theUnited States of America and the standards applicable to financial audits contained inGovernment Auditing Standards, issued by the Comptroller General of the United States.Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audits provide a reasonable basis for our opinion.

As described in Note 1b to the financial statements, the Center prepares its financial statementson the basis of accounting that demonstrates compliance with Washington State statutes andthe Budgeting, Accounting and Reporting System (BARS) manual prescribed by the StateAuditor, which is a comprehensive basis of accounting other than generally acceptedaccounting principles.

In our opinion, the financial statements referred to above present fairly, in all material respects,the financial position and results of operations of I-COM, for the years ended December 31,2008 and 2007, on the basis of accounting described in Note 1b.

In accordance with Government Auditing Standards, we have also issued our report on our

consideration of the Centers internal control over financial reporting and on our tests of itscompliance with certain provisions of laws, regulations, contracts and grant agreements andother matters. The purpose of that report is to describe the scope of our testing of internalcontrol over financial reporting and compliance and the results of that testing, and not to providean opinion on the internal control over financial reporting or on compliance. That report is anintegral part of an audit performed in accordance with Government Auditing Standards andshould be considered in assessing the results of our audits.

Our audits were performed for the purpose of forming an opinion on the financial statementstaken as a whole. The accompanying Schedules of Long-Term Debt are presented for

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purposes of additional analysis as required by the prescribed BARS manual. These schedulesare not a required part of the financial statements. Such information has been subjected to theauditing procedures applied in the audit of the financial statements and, in our opinion, is fairlystated, in all material respects, in relation to the financial statements taken as a whole.


April 15, 2010

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Financial Section

I-COMIsland County


FINANCIAL STATEMENTS

Fund Resources and Uses Arising from Cash Transactions 2008Fund Resources and Uses Arising from Cash Transactions 2007Notes to Financial Statements 2008Notes to Financial Statements 2007

SUPPLEMENTAL INFORMATION

Schedule of Long-Term Debt 2008Schedule of Long-Term Debt 2007

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MCAG No. 0951 Statement C-1

OPERATING RECEIPTS

Charges for Services (User Fees) 1,284,992.00$

Intergornmental (State Grants) 40,943.00$

Miscellaneous (Other) 43,761.00$

Total Operating Receipts 1,369,696.00$

OPERATING DISBURSEMENTS

Salaries & Wages 952,970.98$

Personnel Benefits 444,468.62$

Supplies 18,443.83$

Other Services & Charges 475,165.49$

Intergovernmental Services 6,619.00$

Total Operating Expenses 1,897,667.92$

Operating Income (Loss) (527,971.92)$

NON-OPERATING RECEIPTS

Investment Income (incl. Interest Earned) 6,414.01$

Taxes (E911 Excise Tax) 529,350.00$

Proceeds from Sale of Investments (investments cashed) 200,000.00$

Other Non-Operating Receipts (xfers into Payroll Acct) 1,100,000.00$

Other Non-Operating Receipts (misc. deposits) 9,907.87$

Total Nonoperating Receipts 1,845,671.88$

NON-OPERATING DISBURSEMENTS

Purchase of Capital Assets 63,651.00$

Long-Term Debt Payments - Principal 38,853.43$

Long-Term Debt Payments - Interest 14,848.57$

Purchase of Investments 150,000.00$

Other Non-Operating Disbursements (xfers out of Co Acct) 1,100,000.00$

Total Nonoperating Disbursements 1,367,353.00$

Net increase (decrease) in net cash and investments (49,653.04)$

Beginning balance of net cash and investments 516,748.99$

Ending balance of net cash and investments 467,095.95$

The Accompanying Notes Are An Integral Part Of This Schedule.

Island County Emergency Services Communications Center (I-COM 911)

Statement of Activities Arising from Cash Transactions For the Year Ended December 31, 2008

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MCAG No. 0951 Statement C-1

OPERATING RECEIPTS (REVENUE)

Charges for Services (User Fees) 1,265,878.00$

Intergornmental (State Grants) 503,087.38$

Miscellaneous (Other) 36,294.59$Total Operating Receipts 1,805,259.97$

OPERATING DISBURSEMENTS (EXPENDITURES)

Salaries & Wages 888,467.31$

Personnel Benefits 345,035.41$

Supplies 20,141.78$

Other Services & Charges 401,579.23$

Total Operating Expenses 1,655,223.73$

Operating Income 150,036.24$

NON-OPERATING RECEIPTS (REVENUE)

Investment Income 7,982.38$

Taxes (E911 Excise Tax) 507,650.07$Proceeds from Sale of Investments (investments cashed) 75,000.00$

Other Non-Operating Receipts (xfers into Payroll Acct) 1,200,000.00$

Other Non-Operating Receipts (misc. deposits) 19,230.83$

Total Nonoperating Receipts 1,809,863.28$

NON-OPERATING DISBURSEMENTS (EXPENDITURES)

Purchase of Capital Assets 488,552.15$

Long-Term Debt Payments - Principal 34,995.60$

Long-Term Debt Payments - Interest 18,706.40$

Purchase of Investments 50,000.00$

Other Non-Operating Disbursements (misc. checks) 12,466.17$

Other Non-Operating Disbursements (xfers out of Co Acct) 1,200,000.00$

Total Nonoperating Disbursements 1,804,720.32$

Net increase (decrease) in net cash and investments 155,179.20$

Beginning balance of net cash and investments 361,569.79$

Ending balance of net cash and investments 516,748.99$

The Accompanying Notes Are An Integral Part Of This Schedule.

Island County Emergency Services Communications Center (I-COM 911)

Statement of Activities Arising from Cash Transactions For the Year Ended December 31, 2007

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Island County Emergency Services Communications Center (I-COM)Notes to Financial Statements


The following notes are an integral part of the accompanying financial statements.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe Island County Emergency Services Communications Center was incorporated under the applicablelaws of the State of Washington. The following is a summary of the more significant policies, includingidentification of those policies which result in material departures from generally accepted accountingprinciples:

A. Reporting Entity

The Island County Emergency Services Communications Center (I-COM) is an interlocal agencyproviding Enhanced 9-1-1 services and consolidated law enforcement, fire and emergency medicaldispatch to the citizens of Island County.

I-COM is governed by a seven member Board of Directors who are responsible for appointing theDirector and overseeing the Centers affairs.

The accounting policies of the Center conform to the Budgeting, Accounting and Reporting System(BARS) for Category Two Local Governments prescribed by the State Auditor. For financial reportingpurposes, the Center includes all funds that are controlled by or dependent on the Centers board ofdirectors. Control by or dependence on the Center was determined on the basis of taxing authority,general obligations of the Center, and obligation of the Center to finance any deficits that occur or receiptof significant subsidies to finance certain Center operations.

B. Basis of Presentation

Accounting records for the Center are maintained in accordance with methods prescribed by the StateAuditor under the authority of the Washington State law, Chapter 43.09 RCW. The accounts of the

Center are organized on the basis of funds, each of which is considered a separate accounting entity.Fund accounting is designed to demonstrate legal compliance and to aid financial management bysegregation transactions related to certain Center functions or activities. Each fund is accounted for witha separate set of self-balancing accounts that comprise its cash and investments, revenues, andexpenditures. The Centers resources are allocated to and accounted for in individual funds dependingon what they are to be spent for and how they are controlled.

C. Basis of Accounting And Reporting

Basis of accounting refers to revenues and expenditures, or expenses that are recognized in theaccounts, and reported in the financial statements. The Centers funds are operated on the cash basisof accounting. Under the cash basis of accounting, revenues are recognized when received in cash

rather than when measurable and available, and expenditures are recognized when warrants are issuedrather than when incurred. Purchases of fixed assets are expensed during the year acquired and nogeneral fixed asset account group is established.

The Centers financial statements are excerpted from accounting records maintained for the Center byIsland County in accordance with the method prescribed by the State Auditor under the Authority ofWashington State law, Chapter 43.09, RCW. The financial statements are presented on the cash basis.

The financial statements do not present the financial position of the Center and are not intended topresent results of operations in conformity with generally accepted accounting principles.

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D. Budgets And Budgetary Accounting

The Centers budget procedures are mandated by RCW 52.16.070. The director of the Center isrequired annually, by law, to prepare and certify a budget of the requirements of each Center fund, anddeliver it to the legislative authority of the county in ample time for tax levies to be made for Centerpurposes.

Beyond preparation and certification of the annual budget, the Center is not required by law to maintainbudgetary accounting. However, except as authorized by the issuance and sale of general obligationbonds, the creation of local improvement Centers, and the issuance of local improvement bonds andwarrants of the Center, the board of directors may not incur expenditures in excess of the aggregateamount of taxes levied for that year, revenues derived from all other sources, and the cash balances onhand in the expense and reserve funds of the Center on the first day of that year.

In the event there are unpaid warrants drawn on any Center funds for expenditures and obligationsincurred and outstanding at the end of any calendar year, the warrants may be paid from taxes collectedin the subsequent year or years and from other income.

E. Duties Of The Island County Treasurer

As required by law, the County Treasurer is charged with receiving and disbursing Center revenues,collecting taxes and assessments authorized and levied and to credit Center revenues to the properfund.

The County Treasurer also pays out money received for the account of the Center on warrants issued bythe County Auditor against the proper funds of the Center. The warrants are issued on vouchersapproved and signed by a majority of the Centers Board of Directors and by the Director.

The County Treasurer is the ex officio treasurer for I-COM. In this capacity, the County Treasurerreceived deposits and transacts investments on the Centers behalf. The investments are held by theCounty Treasurer on behalf of the Center. Center investments are in the Washington State InvestmentPool pursuant to the requirements of Washington State law per Chapter 39.54 of the Revised Code of

Washington. Investments are stated at cost.

The County Treasurer is required to report monthly in writing to the director of the Center the amount ofmoney held by the County in each fund and the amount of receipts and disbursements for each fundduring the preceding month.

F. Revenues And Expenditures

Under the cash basis of accounting:

Charges for services, interest on investments and rents generally are considered measurablewhen received in cash in governmental funds.

Taxes that have been collected by the County Treasurer but not remitted are not consideredmeasurable and available until actually transferred to the Centers funds.

Proceeds from sale or loss of fixed assets are recognized as miscellaneous revenues. This is adeparture from generally accepted accounting principles which require that such proceeds beaccounted as other financing sources and uses.

All other revenues are either not measurable or considered not available until collected.

Expenditures are recognized when warrants are issued. Compensated absences are reportedas expenditures when liquidated from expendable available financial resources.

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Note 2 - Taxes

The County Treasurer acts as an agent to collect taxes levied in the County for all taxing authorities.Collections are distributed at the end of each month. The Center recognized tax revenues when cash isrecorded as received by the County.

Note 3 - Fixed Assets

The Center does not maintain a general fixed assets account group. However, a subsidiary list of fixedassets is maintained and annual physical inventories are taken.

Note 4 - Pension Plans

Substantially all Center full time and qualifying part-time employees participate in PERS II or IIIadministered by the Department of Retirement Systems, under cost-sharing multiple-employer publicemployee retirement systems. Actuarial information is on a system-wide basis and is not consideredpertinent to the Centers financial statements. Contributions to the systems by both employee andemployer are based upon gross wages covered by the plan.

Historical trend or other information regarding each plan is presented in the State Department of

Retirement Systems 2002 annual financial report. A copy of this report may be obtained at:

Department of Retirement SystemsP.O. Box 48380Olympia, WA 98505-8380

Note 5 - Contingent Liabilities And Litigation

In the opinion of management, there are no known contingencies, that would not be adequately coveredby the Centers insurance carrier.

Note 6 Long-Term Debt

The accompanying Schedule of Long-Term Debt (09) provides a listing of the outstanding debt of I-COMand summarizes I-COMs debt transactions for 2007. The debt service payment for the fiscal year beingreported and future payment requirements, including interest, are as follows:

Year General Obligations Bonds Revenue Bonds Other Debt Total Debt

2008 $0.00 $0.00 $53,702.00 $53,702.00

2009 $0.00 $0.00 $53,702.00 $53,702.00

2010 $0.00 $0.00 $53,702.00 $53,702.00

2011 $0.00 $0.00 $53,702.00 $53,702.00

2012 $0.00 $0.00 $53,702.00 $53,702.00

TOTALS $0.00 $0.00 $268,510.00 $268,510.00

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Island County Emergency Services Communications Center (I-COM)Notes to Financial Statements


The following notes are an integral part of the accompanying financial statements.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe Island County Emergency Services Communications Center was incorporated under the applicablelaws of the State of Washington. The following is a summary of the more significant policies, includingidentification of those policies which result in material departures from generally accepted accountingprinciples:

A. Reporting Entity

The Island County Emergency Services Communications Center (I-COM) is an interlocal agencyproviding Enhanced 9-1-1 services and consolidated law enforcement, fire and emergency medicaldispatch to the citizens of Island County.

I-COM is governed by a seven member Board of Directors who are responsible for appointing theDirector and overseeing the Centers affairs.

The accounting policies of the Center conform to the Budgeting, Accounting and Reporting System(BARS) for Category Two Local Governments prescribed by the State Auditor. For financial reportingpurposes, the Center includes all funds that are controlled by or dependent on the Centers board ofdirectors. Control by or dependence on the Center was determined on the basis of taxing authority,general obligations of the Center, and obligation of the Center to finance any deficits that occur or receiptof significant subsidies to finance certain Center operations.

B. Basis of Presentation

Accounting records for the Center are maintained in accordance with methods prescribed by the StateAuditor under the authority of the Washington State law, Chapter 43.09 RCW. The accounts of the

Center are organized on the basis of funds, each of which is considered a separate accounting entity.Fund accounting is designed to demonstrate legal compliance and to aid financial management bysegregation transactions related to certain Center functions or activities. Each fund is accounted for witha separate set of self-balancing accounts that comprise its cash and investments, revenues, andexpenditures. The Centers resources are allocated to and accounted for in individual funds dependingon what they are to be spent for and how they are controlled.

C. Basis of Accounting And Reporting

Basis of accounting refers to revenues and expenditures, or expenses that are recognized in theaccounts, and reported in the financial statements. The Centers funds are operated on the cash basisof accounting. Under the cash basis of accounting, revenues are recognized when received in cash

rather than when measurable and available, and expenditures are recognized when warrants are issuedrather than when incurred. Purchases of fixed assets are expensed during the year acquired and nogeneral fixed asset account group is established.

The Centers financial statements are excerpted from accounting records maintained for the Center byIsland County in accordance with the method prescribed by the State Auditor under the Authority ofWashington State law, Chapter 43.09, RCW. The financial statements are presented on the cash basis.

The financial statements do not present the financial position of the Center and are not intended topresent results of operations in conformity with generally accepted accounting principles.

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D. Budgets And Budgetary Accounting

The Centers budget procedures are mandated by RCW 52.16.070. The director of the Center isrequired annually, by law, to prepare and certify a budget of the requirements of each Center fund, anddeliver it to the legislative authority of the county in ample time for tax levies to be made for Centerpurposes.

Beyond preparation and certification of the annual budget, the Center is not required by law to maintainbudgetary accounting. However, except as authorized by the issuance and sale of general obligationbonds, the creation of local improvement Centers, and the issuance of local improvement bonds andwarrants of the Center, the board of directors may not incur expenditures in excess of the aggregateamount of taxes levied for that year, revenues derived from all other sources, and the cash balances onhand in the expense and reserve funds of the Center on the first day of that year.

In the event there are unpaid warrants drawn on any Center funds for expenditures and obligationsincurred and outstanding at the end of any calendar year, the warrants may be paid from taxes collectedin the subsequent year or years and from other income.

E. Duties Of The Island County Treasurer

As required by law, the County Treasurer is charged with receiving and disbursing Center revenues,collecting taxes and assessments authorized and levied and to credit Center revenues to the properfund.

The County Treasurer also pays out money received for the account of the Center on warrants issued bythe County Auditor against the proper funds of the Center. The warrants are issued on vouchersapproved and signed by a majority of the Centers Board of Directors and by the Director.

The County Treasurer is the ex officio treasurer for I-COM. In this capacity, the County Treasurerreceived deposits and transacts investments on the Centers behalf. The investments are held by theCounty Treasurer on behalf of the Center. Center investments are in the Washington State InvestmentPool pursuant to the requirements of Washington State law per Chapter 39.54 of the Revised Code of

Washington. Investments are stated at cost.

The County Treasurer is required to report monthly in writing to the director of the Center the amount ofmoney held by the County in each fund and the amount of receipts and disbursements for each fundduring the preceding month.

F. Revenues And Expenditures

Under the cash basis of accounting:

Charges for services, interest on investments and rents generally are considered measurablewhen received in cash in governmental funds.

Taxes that have been collected by the County Treasurer but not remitted are not consideredmeasurable and available until actually transferred to the Centers funds.

Proceeds from sale or loss of fixed assets are recognized as miscellaneous revenues. This is adeparture from generally accepted accounting principles which require that such proceeds beaccounted as other financing sources and uses.

All other revenues are either not measurable or considered not available until collected.

Expenditures are recognized when warrants are issued. Compensated absences are reportedas expenditures when liquidated from expendable available financial resources.

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Note 2 - Taxes

The County Treasurer acts as an agent to collect taxes levied in the County for all taxing authorities.Collections are distributed at the end of each month. The Center recognized tax revenues when cash isrecorded as received by the County.

Note 3 - Fixed Assets

The Center does not maintain a general fixed assets account group. However, a subsidiary list of fixedassets is maintained and annual physical inventories are taken.

Note 4 - Pension Plans

Substantially all Center full time and qualifying part-time employees participate in PERS II or IIIadministered by the Department of Retirement Systems, under cost-sharing multiple-employer publicemployee retirement systems. Actuarial information is on a system-wide basis and is not consideredpertinent to the Centers financial statements. Contributions to the systems by both employee andemployer are based upon gross wages covered by the plan.

Historical trend or other information regarding each plan is presented in the State Department of

Retirement Systems 2002 annual financial report. A copy of this report may be obtained at:

Department of Retirement SystemsP.O. Box 48380Olympia, WA 98505-8380

Note 5 - Contingent Liabilities And Litigation

In the opinion of management, there are no known contingencies that would not be adequately coveredby the Centers insurance carrier.

Note 6 Long-Term Debt

The accompanying Schedule of Long-Term Debt (09) provides a listing of the outstanding debt of I-COMand summarizes I-COMs debt transactions for 2007. The debt service payment for the fiscal year beingreported and future payment requirements, including interest, are as follows:

Year General Obligations Bonds Revenue Bonds Other Debt Total Debt

2007 $0.00 $0.00 $53,702.00 $53,702.00

2008 $0.00 $0.00 $53,702.00 $53,702.00

2009 $0.00 $0.00 $53,702.00 $53,702.00

2010 $0.00 $0.00 $53,702.00 $53,702.00

2011 $0.00 $0.00 $53,702.00 $53,702.00

2012 $0.00 $0.00 $53,702.00 $53,702.00TOTALS $0.00 $0.00 $322,212.00 $322,212.00

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MCAGNO.0951

SCHEDULE9

___x___

G.O.Debt

______

Re

venueDebt

______

As

sessmentDebt

IDNo.

Dateof

Original

Issuance

Dateof

Maturity

Beginning

Outstanding

Debt01/01/08

Amount

Issuedin

CurrentYear

BARSCode

forReceipt

Receiv

ingFund

Nu

mber

AmountRedeemed

inCurrentYear

(Payments-

PrincipalOnly)

BARSCodefor

Redemption

Redeeming

F

undNumber

EndingOutstanding

Debt12/31/08

263.91

10/27/2005

6/30/2012

270,478.26

$

-

$

N/A

N/A

38,853.43

$

596.28.03

752

231,624.83

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

Total

270,478.26

$

-

$

38,853.43

$

231,624.83

$

NOTE:

Totalpaymentamountwas$5

3,702.00,$38,853.43ofwhichwenttoPrincipaland$14,

848.57wenttoInterest.

TheAccompanyingNotesAreAnIntegralPartOfThisSchedule.

IslandCountyEmergencyServicesCommunicationsCenter(I-COM9

11)

SCHEDULEOFLO

NGTERMD

EBT

FortheYearEndedD

ecember31,2008

_________________________________________________________________________________________________________

Washington State Auditor's Office

17


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MCAGNO.0951

SCHEDULE9

___x___

G.O.Debt

______

Re

venueDebt

______

As

sessmentDebt

IDNo.

Dateof

Original

Issuance

Dateof

Maturity

Beginning

Outstanding

Debt01/01/07

Amount

Issuedin

CurrentYear

BARSCode

forReceipt

Receiv

ingFund

Nu

mber

AmountRedeemed

inCurrentYear

(Payments-

PrincipalOnly)

BARSCodefor

Redemption

Redeeming

F

undNumber

EndingOutstanding

Debt12/31/07

263.91

10/27/2005

6/30/2012

305,473.86

$

-

$

N/A

N/A

34,995.60

$

596.28.03

752

270,478.26

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

Total

305,473.86

$

-

$

34,995.60

$

270,478.26

$

NOTE:

Totalpaymentamountwas$5

3,702.00,$34,995.60ofwhichwenttoPrincipaland$18,

706.40wenttoInterest.

TheAccompanyingNotesAreAnIntegralPartOfThisSchedule.

FortheYearEndedD

ecember31,2007

IslandCountyEmergencyServicesCommunicationsCenter(I-COM9

11)

SCHEDULEOFLO

NGTERMD

EBT

_________________________________________________________________________________________________________

Washington State Auditor's Office

18


22/22

ABOUT THE STATEAUDITOR'S OFFICE

The State Auditor's Office is established in the state's Constitution and is part of the executivebranch of state government. The State Auditor is elected by the citizens of Washington and servesfour-year terms.

Our mission is to work in cooperation with our audit clients and citizens as an advocate forgovernment accountability. As an elected agency, the State Auditor's Office has the independencenecessary to objectively perform audits and investigations. Our audits are designed to comply withprofessional standards as well as to satisfy the requirements of federal, state, and local laws.

The State Auditor's Office employees are located around the state to deliver our services effectively

and efficiently.

Our audits look at financial information and compliance with state, federal and local laws on the partof all local governments, including schools, and all state agencies, including institutions of highereducation. In addition, we conduct performance audits of state agencies and local governments andfraud, whistleblower and citizen hotline investigations.

The results of our work are widely distributed through a variety of reports, which are available onour Web site and through our free, electronic subscription service. We continue to refine ourreporting efforts to ensure the results of our audits are useful and understandable.

We take our role as partners in accountability seriously. We provide training and technical

assistance to governments and have an extensive quality assurance program.

State Auditor Brian Sonntag, CGFMChief of Staff Ted RuttDeputy Chief of Staff Doug CochranChief Policy Advisor Jerry PugnettiDirector of Audit Chuck Pfeil, CPADirector of Special Investigations Jim Brittain, CPADirector for Legal Affairs Jan Jutte, CPA, CGFMDirector of Quality Assurance Ivan Dansereau

Local Government Liaison Mike MurphyCommunications Director Mindy ChambersPublic Records Officer Mary LeiderMain number (360) 902-0370Toll-free Citizen Hotline (866) 902-3900

Website www.sao.wa.govSubscription Service https://www.sao.wa.gov/EN/News/Subscriptions/
http://www.sao.wa.gov/http://www.sao.wa.gov/http://www.sao.wa.gov/

i-com's financial statements audit report from the washington state auditor's office

Documents