Single Audit Report - 2020

Financial Statements and Federal Single
Audit Report
City of Cheney
For the period January 1, 2020 through December 31, 2020
Published December 9, 2021 Find out what’s new at SAO

by scanning this code with
Report No. 1029494
your smartphone’s camera
Office of the Washington State Auditor
Pat McCarthy
December 9, 2021
Mayor and City Council

City of Cheney
Cheney, Washington
Report on Financial Statements and Federal Single Audit

Please find attached our report on the City of Cheney’s financial statements and compliance with
federal laws and regulations.
We are issuing this report in order to provide information on the City’s financial condition.
Sincerely,
Olympia, WA
Americans with Disabilities

In accordance with the Americans with Disabilities Act, we will make this document available in
alternative formats. For more information, please contact our Office at (564) 999-0950, TDD
Relay at (800) 833-6388, or email our webmaster at webmaster@sao.wa.gov.
Insurance Building, P.O. Box 40021  Olympia, Washington 98504-0021  (564) 999-0950  Pat.McCarthy@sao.wa.gov
TABLE OF CONTENTS
Schedule of Findings and Questioned Costs................................................................................... 4
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..................................................................................................... 6
Independent Auditor's Report on Compliance for Each Major Federal Program and Report on
Internal Control Over Compliance in Accordance With the Uniform Guidance ........................... 8
Independent Auditor's Report on the Financial Statements .......................................................... 11
Financial Section........................................................................................................................... 14
About the State Auditor's Office ................................................................................................... 82
Office of the Washington State Auditor sao.wa.gov Page 3

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
City of Cheney
January 1, 2020 through December 31, 2020
SECTION I – SUMMARY OF AUDITOR’S RESULTS

The results of our audit of the City of Cheney are summarized below in accordance with Title 2
U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Financial Statements
We issued an unmodified opinion on the fair presentation of the financial statements of the
governmental activities, the business-type activities, each major fund and the aggregate remaining
fund information in accordance with accounting principles generally accepted in the United States
of America (GAAP).
Internal Control over Financial Reporting:
• Significant Deficiencies: We reported no deficiencies in the design or operation of internal

control over financial reporting that we consider to be significant deficiencies.
• Material Weaknesses: We identified no deficiencies that we consider to be material

weaknesses.
We noted no instances of noncompliance that were material to the financial statements of the City.
Federal Awards
Internal Control over Major Programs:
• Significant Deficiencies: We reported no deficiencies in the design or operation of internal

control over major federal programs that we consider to be significant deficiencies.
• Material Weaknesses: We identified no deficiencies that we consider to be material

weaknesses.
We issued an unmodified opinion on the City’s compliance with requirements applicable to its
major federal program.
We reported no findings that are required to be disclosed in accordance with 2 CFR 200.516(a).

Identification of Major Federal Programs
The following program was selected as a major program in our audit of compliance in accordance
with the Uniform Guidance.
CFDA No. Program or Cluster Title

20.205 Highway Planning and Construction Cluster – Highway Planning and
Construction
The dollar threshold used to distinguish between Type A and Type B programs, as prescribed by
the Uniform Guidance, was $750,000.
The City did not qualify as a low-risk auditee under the Uniform Guidance.
SECTION II – FINANCIAL STATEMENT FINDINGS

None reported.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED

COSTS
None reported.

INDEPENDENT AUDITOR’S REPORT
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
City of Cheney

City of Cheney
Cheney, Washington
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities, the business-type activities, each major fund and the aggregate remaining
fund information of the City of Cheney, as of and for the year ended December 31, 2020, and the
related notes to the financial statements, which collectively comprise the City’s basic financial
statements, and have issued our report thereon dated November 22, 2021.
As discussed in Note 20 to the financial statements, the full extent of the COVID-19 pandemic’s
direct or indirect financial impact on the District is unknown. Management’s plans in response to
this matter are also described in Note 20.
INTERNAL CONTROL OVER FINANCIAL REPORTING

In planning and performing our audit of the financial statements, we considered the City’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 City’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the City’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of

deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. 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.
COMPLIANCE AND OTHER MATTERS

As part of obtaining reasonable assurance about whether the City’s financial statements are free
from material misstatement, we performed tests of the City’s compliance with certain provisions
of laws, regulations, contracts and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing
an opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required
to be reported under Government Auditing Standards.
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
City’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 City’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose. However, this
report is a matter of public record and its distribution is not limited. It also serves to disseminate
information to the public as a reporting tool to help citizens assess government operations.
Pat McCarthy, State Auditor

Olympia, WA
November 22, 2021

Report on Compliance for Each Major Federal Program and Report on Internal
Control over Compliance in Accordance with the Uniform Guidance
City of Cheney

City of Cheney
Cheney, Washington
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL

PROGRAM
We have audited the compliance of the City of Cheney, with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that could
have a direct and material effect on each of the City’s major federal programs for the year ended
December 31, 2020. The City’s major federal programs are identified in the accompanying
Schedule of Findings and Questioned Costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal
programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Those standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred.
An audit includes examining, on a test basis, evidence about the City’s compliance with those
requirements and performing such other procedures as we considered necessary in the
circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. Our audit does not provide a legal determination on the City’s compliance.
Opinion on Each Major Federal Program

In our opinion, the City complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended December 31, 2020.
Other Matters
We noted certain matters that we will report to the management of the City in a separate letter
dated December 3, 2021. Our opinion on each major federal program is not modified with respect
to these matters.
REPORT ON INTERNAL CONTROL OVER COMPLIANCE

Management of the City is responsible for establishing and maintaining effective internal control
over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the City’s internal control over compliance
with the types of requirements that could have a direct and material effect on each major federal
program in order to determine the auditing procedures that are appropriate in the circumstances
for the purpose of expressing an opinion on compliance for each major federal program and to test
and report on internal control over compliance in accordance with the Uniform Guidance, but not
for the purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. We did not identify any deficiencies
in internal control over compliance that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
We noted certain matters that we will report to the management of the City in a separate letter
dated December 3, 2021.
Purpose of this Report

The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose. However, this report is a matter of public record and its distribution is not limited. It also
serves to disseminate information to the public as a reporting tool to help citizens assess
government operations.

Olympia, WA
November 22, 2021

Report on the Financial Statements
City of Cheney

City of Cheney
Cheney, Washington
REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund and the aggregate remaining fund information of the City
of Cheney, as of and for the year ended December 31, 2020, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed on page 14.
Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions 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 from 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 City’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 City’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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund and the aggregate remaining fund information of the City of Cheney, as of
December 31, 2020, and the respective changes in financial position and, where applicable, cash
flows thereof, and the respective budgetary comparison for the General and Parks & Recreation
funds for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Matters of Emphasis
As discussed in Note 20 to the financial statements, the full extent of the COVID-19 pandemic’s
direct or indirect financial impact on the District is unknown. Management’s plans in response to
this matter are also described in Note 20. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and required supplementary information listed on page 14
be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic or historical context. We have applied certain
limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary and Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements as a whole. The accompanying
Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as
required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance).This schedule is 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 basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated, in all material respects, in relation to the basic financial statements
taken as a whole.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING

STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated
November 22, 2021 on our consideration of the City’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on 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 City’s internal control over financial reporting and compliance.

Olympia, WA
November 22, 2021

FINANCIAL SECTION
City of Cheney
REQUIRED SUPPLEMENTARY INFORMATION

Management’s Discussion and Analysis – 2020
BASIC FINANCIAL STATEMENTS

Statement of Net Position – 2020
Statement of Activities – 2020
Balance Sheet – Governmental Funds– 2020
Reconciliation of Total Governmental Fund Balances to Net Position of Governmental
Activities – 2020
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental
Funds – 2020
Reconciliation of Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities – 2020
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual
– General Fund – 2020
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget to Actual
– Parks and Recreation Fund – 2020
Statement of Net Position – Proprietary Funds – 2020
Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds
– 2020
Statement of Cash Flows – Proprietary Funds – 2020
Statement of Fiduciary Net Position – Fiduciary Funds – 2020
Statement of Changes in Fiduciary Net Position – Fiduciary Funds – 2020
Notes to the Basic Financial Statements – 2020

Schedule of Proportionate Share of the Net Pension Liability – PERS 1, PERS 2/3,
LEOFF 1, and LEOFF 2 – 2020
Schedule of Employer Contributions – PERS 1, PERS 2/3, and LEOFF 2 – 2020
Schedule of Changes in Total OPEB Liability and Related Ratios – LEOFF 1 Retirees –
2020

SUPPLEMENTARY AND OTHER INFORMATION
Schedule of Expenditures of Federal Awards – 2020
Notes to the Schedule of Expenditures of Federal Awards – 2020

/dzK&,Ez͕t^,/E'dKE
DĂŶĂŐĞŵĞŶƚ͛ƐŝƐĐƵƐƐŝŽŶĂŶĚŶĂůǇƐŝƐ
&ŽƌƚŚĞzĞĂƌŶĚĞĚĞĐĞŵďĞƌϯϭ͕ϮϬϮϬ

ƐŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇ͕ǁĞŽĨĨĞƌƚŚĞƌĞĂĚĞƌƐŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ
ƚŚŝƐŶĂƌƌĂƚŝǀĞŽǀĞƌǀŝĞǁĂŶĚĂŶĂůǇƐŝƐŽĨƚŚĞĨŝŶĂŶĐŝĂůĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇĨŽƌƚŚĞĨŝƐĐĂůǇĞĂƌĞŶĚĞĚ
ĞĐĞŵďĞƌϯϭ͕ϮϬϮϬ͘

&/EE/>,/',>/',d^

x dŚĞĂƐƐĞƚƐĂŶĚĚĞĨĞƌƌĞĚŽƵƚĨůŽǁƐŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇĞǆĐĞĞĚĞĚŝƚƐůŝĂďŝůŝƚŝĞƐĂŶĚĚĞĨĞƌƌĞĚŝŶĨůŽǁƐ
ĂƚƚŚĞĐůŽƐĞŽĨƚŚĞŵŽƐƚƌĞĐĞŶƚĨŝƐĐĂůǇĞĂƌďǇΨϰϵ͕Ϯϴϲ͕Ϭϲϯ͘KĨƚŚŝƐĂŵŽƵŶƚ͕Ψϳ͕ϵϴϭ͕ϴϱϵŵĂǇďĞ
ƵƐĞĚƚŽŵĞĞƚƚŚĞŐŽǀĞƌŶŵĞŶƚ͛ƐŽŶŐŽŝŶŐŽďůŝŐĂƚŝŽŶƐƚŽĐŝƚŝǌĞŶƐĂŶĚĐƌĞĚŝƚŽƌƐ͘
x dŚĞŐŽǀĞƌŶŵĞŶƚ͛ƐƚŽƚĂůŶĞƚƉŽƐŝƚŝŽŶŝŶĐƌĞĂƐĞĚŝŶϮϬϮϬďǇΨϮ͕ϲϱϴ͕ϳϴϭŽƌϲй͘dŚĞĐŚĂŶŐĞŝŶŶĞƚ
ƉŽƐŝƚŝŽŶŝƐŝŶůĂƌŐĞƉĂƌƚĚƵĞƚŽ͗
R ŽƚŚĚĞĨĞƌƌĞĚŝŶĨůŽǁƐĂŶĚŽƵƚĨůŽǁƐƌĞůĂƚĞĚƚŽƉĞŶƐŝŽŶƐŝŶĐƌĞĂƐĞĚƚŚĞƚŽƚĂůŶĞƚƉŽƐŝƚŝŽŶ
ŝŶďŽƚŚŐŽǀĞƌŶŵĞŶƚĂůĂŶĚďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐ͘
R ZĞƉĂǇŵĞŶƚŽĨďƵƐŝŶĞƐƐͲƚǇƉĞĚĞďƚĐŽŶƚŝŶƵĞƐƚŽŝŵƉƌŽǀĞƚŚĞŶĞƚƉŽƐŝƚŝŽŶŽĨƚŚĞďƵƐŝŶĞƐƐͲ
ƚǇƉĞĨƵŶĚƐ͘
R dŚĞŝƚǇƌĞĐĞŝǀĞĚZ^ĨƵŶĚŝŶŐŽĨΨϱϱϴ͕ϰϱϬƚŽĂƐƐŝƐƚǁŝƚŚƚŚĞĞǆƉĞŶƐĞƐƌĞůĂƚĞĚƚŽƚŚĞ
Ks/ƉĂŶĚĞŵŝĐ͘
R dŚĞŝƚǇƌĞĐĞŝǀĞĚĂůĂƌŐĞĨĞĚĞƌĂůŐƌĂŶƚĨŽƌƐƚƌĞĞƚƉƌŽũĞĐƚƐ͘
x ƚ ƚŚĞ ĐůŽƐĞ ŽĨ ƚŚĞĐƵƌƌĞŶƚ ĨŝƐĐĂů ǇĞĂƌ͕ ƚŚĞ ŝƚǇŽĨ ŚĞŶĞǇ͛Ɛ ŐŽǀĞƌŶŵĞŶƚĂů ĨƵŶĚƐ ďĂůĂŶĐĞ ƐŚĞĞƚ
ƌĞƉŽƌƚĞĚ ĐŽŵďŝŶĞĚ ĞŶĚŝŶŐ ĨƵŶĚ ďĂůĂŶĐĞƐ ŽĨ Ψϴ͕ϳϰϱ͕Ϯϱϴ͕ ĂŶ ŝŶĐƌĞĂƐĞ ŽĨ Ψϴϱϴ͕ϱϱϳ Žƌ ϭϭй ŝŶ
ĐŽŵƉĂƌŝƐŽŶǁŝƚŚƚŚĞƉƌŝŽƌǇĞĂƌ͘Ψϯ͕ϵϱϭ͕ϳϲϵŽĨƚŚŝƐĂŵŽƵŶƚŝƐĂǀĂŝůĂďůĞĨŽƌƐƉĞŶĚŝŶŐĂƚƚŚĞŝƚǇ͛Ɛ
ĚŝƐĐƌĞƚŝŽŶ͘dŚŝƐŝƐƚŚĞĨŽƵƌƚŚǇĞĂƌŝŶĂƌŽǁǁŚĞƌĞƚŚĞŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐďĂůĂŶĐĞƐŚĞĞƚŚĂƐ
ĞǆƉĞƌŝĞŶĐĞĚŐƌŽǁƚŚ͘dŚŝƐĂĐƚŝŽŶŝƐůĂƌŐĞůǇĚƵĞƚŽĐŽŶƚŝŶƵĞĚĂŶĂůǇƐŝƐŽĨďŽƚŚĞǆƉĞĐƚĞĚƌĞǀĞŶƵĞƐ
ĂŶĚďƵĚŐĞƚĞĚĞǆƉĞŶƐĞƐ͘
x ůƚŚŽƵŐŚŶĞƚƉŽƐŝƚŝŽŶƐĂǁĂƐůŝŐŚƚŝŶĐƌĞĂƐĞ͕ƚŚĞŝƚǇŝƐƌĞǀŝĞǁŝŶŐƚŚĞƌĞĚƵĐĞĚƌĞǀĞŶƵĞƐŽƵƌĐĞƐĂŶĚ
ƚŚĞŝƌƌĞďŽƵŶĚĂƐďƵƐŝŶĞƐƐĞƐƌĞŽƉĞŶŝŶƚŚĞƉŚĂƐĞĚƌĞŽƉĞŶŝŶŐƉůĂŶ͗
R ^ĂůĞƐdĂǆ
R WƌŽƉĞƌƚǇƚĂǆ
R hƚŝůŝƚǇdĂǆZĞĐĞŝǀĂďůĞƐ
R ƵŝůĚŝŶŐWĞƌŵŝƚƐ
R WĂƌŬŝŶŐDĞƚĞƌZĞǀĞŶƵĞƐ

KsZs/tK&d,&/EE/>^ddDEd^

dŚŝƐĚŝƐĐƵƐƐŝŽŶĂŶĚĂŶĂůǇƐŝƐŝƐŝŶƚĞŶĚĞĚƚŽƐĞƌǀĞĂƐĂŶŝŶƚƌŽĚƵĐƚŝŽŶƚŽƚŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐďĂƐŝĐĨŝŶĂŶĐŝĂů
ƐƚĂƚĞŵĞŶƚƐ͘dŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐďĂƐŝĐĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĐŽŵƉƌŝƐĞƚŚƌĞĞĐŽŵƉŽŶĞŶƚƐ͗ϭͿŐŽǀĞƌŶŵĞŶƚͲ
ǁŝĚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ϮͿĨƵŶĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ĂŶĚϯͿŶŽƚĞƐƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘dŚŝƐ
ƌĞƉŽƌƚĂůƐŽĐŽŶƚĂŝŶƐŽƚŚĞƌŝŶĨŽƌŵĂƚŝŽŶŝŶĂĚĚŝƚŝŽŶƚŽƚŚĞďĂƐŝĐĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƚŚĞŵƐĞůǀĞƐ͘

'ŽǀĞƌŶŵĞŶƚͲtŝĚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ

dŚĞŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞĚĞƐŝŐŶĞĚƚŽƉƌŽǀŝĚĞƌĞĂĚĞƌƐǁŝƚŚĂďƌŽĂĚŽǀĞƌǀŝĞǁŽĨƚŚĞ
ŝƚǇŽĨŚĞŶĞǇ͛ƐĨŝŶĂŶĐĞƐ͕ŝŶĂŵĂŶŶĞƌƐŝŵŝůĂƌƚŽƉƌŝǀĂƚĞͲƐĞĐƚŽƌďƵƐŝŶĞƐƐĞƐ͘

Page 16

/dzK&,Ez͕t^,/E'dKE

dŚĞƐƚĂƚĞŵĞŶƚŽĨŶĞƚƉŽƐŝƚŝŽŶƉƌĞƐĞŶƚƐŝŶĨŽƌŵĂƚŝŽŶŽŶĂůůŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐĂƐƐĞƚƐ͕ĚĞĨĞƌƌĞĚŽƵƚĨůŽǁƐ͕
ůŝĂďŝůŝƚŝĞƐ͕ ĂŶĚ ĚĞĨĞƌƌĞĚ ŝŶĨůŽǁƐ ǁŝƚŚ ƚŚĞ ĚŝĨĨĞƌĞŶĐĞ ƌĞƉŽƌƚĞĚ ĂƐ ŶĞƚ ƉŽƐŝƚŝŽŶ͘ KǀĞƌ ƚŝŵĞ͕ ŝŶĐƌĞĂƐĞƐ Žƌ
ĚĞĐƌĞĂƐĞƐŝŶŶĞƚƉŽƐŝƚŝŽŶŵĂǇƐĞƌǀĞĂƐĂƵƐĞĨƵůŝŶĚŝĐĂƚŽƌŽĨǁŚĞƚŚĞƌƚŚĞĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶŽĨƚŚĞŝƚǇŽĨ
ŚĞŶĞǇŝƐŝŵƉƌŽǀŝŶŐŽƌĚĞƚĞƌŝŽƌĂƚŝŶŐ͘

dŚĞ ƐƚĂƚĞŵĞŶƚ ŽĨ ĂĐƚŝǀŝƚŝĞƐƉƌĞƐĞŶƚƐ ŝŶĨŽƌŵĂƚŝŽŶ ƐŚŽǁŝŶŐ ŚŽǁ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚ͛Ɛ ŶĞƚ ƉŽƐŝƚŝŽŶ ĐŚĂŶŐĞĚ
ĚƵƌŝŶŐƚŚĞĨŝƐĐĂůǇĞĂƌ͘ůůĐŚĂŶŐĞƐŝŶŶĞƚƉŽƐŝƚŝŽŶĂƌĞƌĞƉŽƌƚĞĚĂƐƐŽŽŶĂƐƚŚĞƵŶĚĞƌůǇŝŶŐĞǀĞŶƚŐŝǀŝŶŐƌŝƐĞ
ƚŽƚŚĞĐŚĂŶŐĞŽĐĐƵƌƐ͕ƌĞŐĂƌĚůĞƐƐŽĨƚŚĞƚŝŵŝŶŐŽĨƌĞůĂƚĞĚĐĂƐŚĨůŽǁƐ͘dŚƵƐ͕ƌĞǀĞŶƵĞƐĂŶĚĞǆƉĞŶƐĞƐĂƌĞ
ƌĞƉŽƌƚĞĚŝŶƚŚŝƐƐƚĂƚĞŵĞŶƚĨŽƌƐŽŵĞŝƚĞŵƐƚŚĂƚǁŝůůƌĞƐƵůƚŝŶĐĂƐŚĨůŽǁƐŝŶĨƵƚƵƌĞƉĞƌŝŽĚƐ;Ğ͘Ő͘ƵŶĐŽůůĞĐƚĞĚ
ƚĂǆĞƐĂŶĚĞĂƌŶĞĚďƵƚƵŶƵƐĞĚǀĂĐĂƚŝŽŶůĞĂǀĞͿ͘

ŽƚŚ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĚŝƐƚŝŶŐƵŝƐŚ ĨƵŶĐƚŝŽŶƐ ŽĨ ƚŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ ƚŚĂƚ ĂƌĞ
ƉƌŝŶĐŝƉĂůůǇ ƐƵƉƉŽƌƚĞĚ ďǇ ƚĂǆĞƐ ĂŶĚ ŝŶƚĞƌŐŽǀĞƌŶŵĞŶƚĂů ƌĞǀĞŶƵĞƐ ;ŐŽǀĞƌŶŵĞŶƚĂů ĂĐƚŝǀŝƚŝĞƐͿ ĨƌŽŵ ŽƚŚĞƌ
ĨƵŶĐƚŝŽŶƐ ƚŚĂƚ ĂƌĞ ŝŶƚĞŶĚĞĚ ƚŽ ƌĞĐŽǀĞƌ Ăůů Žƌ Ă ƐŝŐŶŝĨŝĐĂŶƚ ƉŽƌƚŝŽŶ ŽĨ ƚŚĞŝƌ ĐŽƐƚƐ ƚŚƌŽƵŐŚ ƵƐĞƌ ĨĞĞƐ ĂŶĚ
ĐŚĂƌŐĞƐ ;ďƵƐŝŶĞƐƐͲƚǇƉĞ ĂĐƚŝǀŝƚŝĞƐͿ͘ dŚĞ ŐŽǀĞƌŶŵĞŶƚĂů ĂĐƚŝǀŝƚŝĞƐ ŝŶ ƚŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ ŝŶĐůƵĚĞ ŐĞŶĞƌĂů
ŐŽǀĞƌŶŵĞŶƚ͕ĨŝŶĂŶĐĞ͕ƉŽůŝĐĞ͕ĨŝƌĞ͕ƐƚƌĞĞƚƐ͕ƉůĂŶŶŝŶŐ͕ďƵŝůĚŝŶŐ͕ŵƵŶŝĐŝƉĂůĐŽƵƌƚ͕ĂŶĚĐƵůƚƵƌĞĂŶĚƌĞĐƌĞĂƚŝŽŶ͘
dŚĞďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇŝŶĐůƵĚĞĞůĞĐƚƌŝĐ͕ǁĂƚĞƌ͕ŐĂƌďĂŐĞĂŶĚƐĞǁĞƌ͘

&ƵŶĚ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ

ĨƵŶĚŝƐĂŐƌŽƵƉŝŶŐŽĨƌĞůĂƚĞĚĂĐĐŽƵŶƚƐƚŚĂƚŝƐƵƐĞĚƚŽŵĂŝŶƚĂŝŶĐŽŶƚƌŽůŽǀĞƌƌĞƐŽƵƌĐĞƐƚŚĂƚŚĂǀĞďĞĞŶ
ƐĞŐƌĞŐĂƚĞĚĨŽƌƐƉĞĐŝĨŝĐĂĐƚŝǀŝƚŝĞƐŽƌŽďũĞĐƚŝǀĞƐ͘dŚĞŝƚǇŽĨŚĞŶĞǇ͕ůŝŬĞŽƚŚĞƌůŽĐĂůŐŽǀĞƌŶŵĞŶƚƐ͕ƵƐĞƐ
ĨƵŶĚĂĐĐŽƵŶƚŝŶŐƚŽĞŶƐƵƌĞĂŶĚĚĞŵŽŶƐƚƌĂƚĞĐŽŵƉůŝĂŶĐĞǁŝƚŚĨŝŶĂŶĐĞͲƌĞůĂƚĞĚůĞŐĂůƌĞƋƵŝƌĞŵĞŶƚƐ͘ůůŽĨ
ƚŚĞ ĨƵŶĚƐ ŽĨ ƚŚĞŝƚǇŽĨ ŚĞŶĞǇ ĐĂŶ ďĞ ĚŝǀŝĚĞĚ ŝŶƚŽƚŚƌĞĞ ĐĂƚĞŐŽƌŝĞƐ͗ 'ŽǀĞƌŶŵĞŶƚĂů͕WƌŽƉƌŝĞƚĂƌǇ͕ ĂŶĚ
&ŝĚƵĐŝĂƌǇ͘

'ŽǀĞƌŶŵĞŶƚĂů&ƵŶĚƐ͘'ŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐĂƌĞƵƐĞĚƚŽĂĐĐŽƵŶƚĨŽƌĞƐƐĞŶƚŝĂůůǇƚŚĞƐĂŵĞĨƵŶĐƚŝŽŶƐ
ƌĞƉŽƌƚĞĚ ĂƐ ŐŽǀĞƌŶŵĞŶƚĂů ĂĐƚŝǀŝƚŝĞƐ ŝŶ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͘ ,ŽǁĞǀĞƌ͕
ƵŶůŝŬĞƚŚĞŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽĐƵƐ
ŽŶŶĞĂƌͲƚĞƌŵŝŶĨůŽǁƐĂŶĚŽƵƚĨůŽǁƐŽĨƐƉĞŶĚĂďůĞƌĞƐŽƵƌĐĞƐ͕ĂƐǁĞůůĂƐŽŶďĂůĂŶĐĞƐŽĨƐƉĞŶĚĂďůĞ
ƌĞƐŽƵƌĐĞƐĂǀĂŝůĂďůĞĂƚƚŚĞĞŶĚŽĨƚŚĞĨŝƐĐĂůǇĞĂƌ͘^ƵĐŚŝŶĨŽƌŵĂƚŝŽŶŵĂǇďĞƵƐĞĨƵůŝŶĞǀĂůƵĂƚŝŶŐĂ
ŐŽǀĞƌŶŵĞŶƚ͛ƐŶĞĂƌƚĞƌŵĨŝŶĂŶĐŝĂůƌĞƋƵŝƌĞŵĞŶƚƐ͘

ĞĐĂƵƐĞƚŚĞĨŽĐƵƐŽĨŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐŝƐŶĂƌƌŽǁĞƌƚŚĂŶƚŚĂƚŽĨƚŚĞŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞĨŝŶĂŶĐŝĂů
ƐƚĂƚĞŵĞŶƚƐ͕ŝƚŝƐƵƐĞĨƵůƚŽĐŽŵƉĂƌĞƚŚĞŝŶĨŽƌŵĂƚŝŽŶƉƌĞƐĞŶƚĞĚĨŽƌŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐǁŝƚŚƐŝŵŝůĂƌ
ŝŶĨŽƌŵĂƚŝŽŶ ƉƌĞƐĞŶƚĞĚ ĨŽƌŐŽǀĞƌŶŵĞŶƚ ĂĐƚŝǀŝƚŝĞƐ ŝŶƚŚĞ ŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͘
ǇĚŽŝŶŐƐŽ͕ƌĞĂĚĞƌƐŵĂǇďĞƚƚĞƌƵŶĚĞƌƐƚĂŶĚƚŚĞůŽŶŐͲƚĞƌŵŝŵƉĂĐƚŽĨƚŚĞŐŽǀĞƌŶŵĞŶƚ͛ƐŶĞĂƌͲƚĞƌŵ
ĨƵŶĚŝŶŐ ĚĞĐŝƐŝŽŶƐ͘ ŽƚŚ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚĂů ĨƵŶĚƐ ďĂůĂŶĐĞ ƐŚĞĞƚ ĂŶĚ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚĂů ĨƵŶĚ
ƐƚĂƚĞŵĞŶƚ ŽĨ ƌĞǀĞŶƵĞƐ͕ ĞǆƉĞŶĚŝƚƵƌĞƐ͕ ĂŶĚ ĐŚĂŶŐĞƐ ŝŶ ĨƵŶĚ ďĂůĂŶĐĞ ƉƌŽǀŝĚĞ Ă ƌĞĐŽŶĐŝůŝĂƚŝŽŶ ƚŽ
ĨĂĐŝůŝƚĂƚĞƚŚŝƐĐŽŵƉĂƌŝƐŽŶďĞƚǁĞĞŶŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐĂŶĚŐŽǀĞƌŶŵĞŶƚĂůĂĐƚŝǀŝƚŝĞƐ͘

dŚĞŝƚǇŵĂŝŶƚĂŝŶƐϭϱŝŶĚŝǀŝĚƵĂůŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐ͘/ŶĨŽƌŵĂƚŝŽŶŝƐƉƌĞƐĞŶƚĞĚƐĞƉĂƌĂƚĞůǇŝŶƚŚĞ
ŐŽǀĞƌŶŵĞŶƚĂů ĨƵŶĚ ďĂůĂŶĐĞ ƐŚĞĞƚ ĂŶĚ ŝŶ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚĂů ĨƵŶĚ ƐƚĂƚĞŵĞŶƚ ŽĨ ƌĞǀĞŶƵĞƐ͕
ĞǆƉĞŶĚŝƚƵƌĞƐ͕ĂŶĚĐŚĂŶŐĞƐŝŶĨƵŶĚďĂůĂŶĐĞ͘dŚĞŐĞŶĞƌĂůĨƵŶĚĂŶĚƚŚĞƉĂƌŬƐĂŶĚƌĞĐƌĞĂƚŝŽŶĨƵŶĚ

Page 17

/dzK&,Ez͕t^,/E'dKE

ĂƌĞďŽƚŚƌĞƉŽƌƚĞĚĂƐŐŽǀĞƌŶŵĞŶƚĂůŵĂũŽƌĨƵŶĚƐŝŶϮϬϮϬ͘ĂƚĂĨƌŽŵƚŚĞŽƚŚĞƌϭϯŐŽǀĞƌŶŵĞŶƚĂů
ĨƵŶĚƐĂƌĞĐŽŶƐŝĚĞƌĞĚƚŽďĞŶŽŶͲŵĂũŽƌĂŶĚĂƌĞĐŽŵďŝŶĞĚŝŶƚŽĂƐŝŶŐůĞ͕ĂŐŐƌĞŐĂƚĞĚƉƌĞƐĞŶƚĂƚŝŽŶ͘

dŚĞŝƚǇŽĨŚĞŶĞǇĂĚŽƉƚƐĂŶĂŶŶƵĂůĂƉƉƌŽƉƌŝĂƚĞĚďƵĚŐĞƚĨŽƌĂůůŐŽǀĞƌŶŵĞŶƚĂůĂŶĚƉƌŽƉƌŝĞƚĂƌǇ
ĨƵŶĚƐ͘ ďƵĚŐĞƚĂƌǇ ĐŽŵƉĂƌŝƐŽŶ ƐƚĂƚĞŵĞŶƚ ŚĂƐ ďĞĞŶ ƉƌŽǀŝĚĞĚ ĨŽƌ ƚŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ͛Ɛ ŵĂũŽƌ
ŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚ͕ƚŚĞŐĞŶĞƌĂůĨƵŶĚ͕ƚŽĚĞŵŽŶƐƚƌĂƚĞĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚŝƐďƵĚŐĞƚ͘

WƌŽƉƌŝĞƚĂƌǇ &ƵŶĚƐ͘ dŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇŵĂŝŶƚĂŝŶƐ ƚǁŽ ƚǇƉĞƐŽĨ ƉƌŽƉƌŝĞƚĂƌǇ ĨƵŶĚƐ͘ ŶƚĞƌƉƌŝƐĞ
ĨƵŶĚƐ ĂƌĞ ƵƐĞĚ ƚŽ ƌĞƉŽƌƚ ƚŚĞ ƐĂŵĞ ĨƵŶĐƚŝŽŶ ƉƌĞƐĞŶƚĞĚ ĂƐ ďƵƐŝŶĞƐƐͲƚǇƉĞ ĂĐƚŝǀŝƚŝĞƐ ŝŶ ƚŚĞ
ŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘dŚĞŝƚǇŽĨŚĞŶĞǇƵƐĞƐĞŶƚĞƌƉƌŝƐĞĨƵŶĚƐƚŽĂĐĐŽƵŶƚĨŽƌ
ŝƚƐĞůĞĐƚƌŝĐ͕ǁĂƚĞƌ͕ƐŽůŝĚǁĂƐƚĞ͕ĂŶĚƐĞǁĞƌŽƉĞƌĂƚŝŽŶƐ͘/ŶƚĞƌŶĂůƐĞƌǀŝĐĞĨƵŶĚƐĂƌĞĂŶĂĐĐŽƵŶƚŝŶŐ
ĚĞǀŝĐĞ ƵƐĞĚ ƚŽ ĂĐĐƵŵƵůĂƚĞ ĂŶĚ ĂůůŽĐĂƚĞ ĐŽƐƚƐ ŝŶƚĞƌŶĂůůǇ ĂŵŽŶŐ ƚŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ͛Ɛ ǀĂƌŝŽƵƐ
ĨƵŶĐƚŝŽŶƐ͘ dŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ ƵƐĞƐ ŝŶƚĞƌŶĂů ƐĞƌǀŝĐĞ ĨƵŶĚƐ ƚŽ ĂĐĐŽƵŶƚ ĨŽƌ ĞƋƵŝƉŵĞŶƚ ƌĞŶƚĂů͕
ŵĞĐŚĂŶŝĐĂůƐŚŽƉĂŶĚƵŶĞŵƉůŽǇŵĞŶƚ͘ĞĐĂƵƐĞƚŚĞƐĞĨƵŶĚƐƉƌĞĚŽŵŝŶĂƚĞůǇďĞŶĞĨŝƚŐŽǀĞƌŶŵĞŶƚĂů
ƌĂƚŚĞƌƚŚĂŶďƵƐŝŶĞƐƐͲƚǇƉĞĨƵŶĐƚŝŽŶƐ͕ƚŚĞǇŚĂǀĞďĞĞŶŝŶĐůƵĚĞĚǁŝƚŚŝŶŐŽǀĞƌŶŵĞŶƚĂůĂĐƚŝǀŝƚŝĞƐŝŶ
ƚŚĞŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘

WƌŽƉƌŝĞƚĂƌǇ ĨƵŶĚƐ ƉƌŽǀŝĚĞ ƚŚĞ ƐĂŵĞ ƚǇƉĞ ŽĨ ŝŶĨŽƌŵĂƚŝŽŶ ĂƐ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞ ĨŝŶĂŶĐŝĂů
ƐƚĂƚĞŵĞŶƚƐ͕ ŽŶůǇ ŝŶ ŵŽƌĞ ĚĞƚĂŝů͘ dŚĞ ƉƌŽƉƌŝĞƚĂƌǇ ĨƵŶĚ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ƉƌŽǀŝĚĞ ƐĞƉĂƌĂƚĞ
ŝŶĨŽƌŵĂƚŝŽŶĨŽƌĞůĞĐƚƌŝĐ͕ǁĂƚĞƌ͕ƐŽůŝĚǁĂƐƚĞ͕ĂŶĚƐĞǁĞƌ͕ĂůůŽĨǁŚŝĐŚĂƌĞĐŽŶƐŝĚĞƌĞĚƚŽďĞŵĂũŽƌ
ĨƵŶĚƐŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇ͘ŽŶǀĞƌƐĞůǇ͕ƚŚĞŝŶƚĞƌŶĂůƐĞƌǀŝĐĞĨƵŶĚƐĂƌĞĐŽŵďŝŶĞĚŝŶƚŽĂƐŝŶŐůĞ͕
ĂŐŐƌĞŐĂƚĞƉƌĞƐĞŶƚĂƚŝŽŶŽŶƚŚĞƉƌŽƉƌŝĞƚĂƌǇĨƵŶĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘

&ŝĚƵĐŝĂƌǇ&ƵŶĚƐ͘&ŝĚƵĐŝĂƌǇĨƵŶĚƐĂƌĞƵƐĞĚƚŽĂĐĐŽƵŶƚĨŽƌƌĞƐŽƵƌĐĞƐŚĞůĚĨŽƌƚŚĞďĞŶĞĨŝƚŽĨƉĂƌƚŝĞƐ
ŽƵƚƐŝĚĞ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚ͘ &ŝĚƵĐŝĂƌǇ ĨƵŶĚƐ ĂƌĞ ŶŽƚ ƌĞĨůĞĐƚĞĚ ŝŶ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞ ĨŝŶĂŶĐŝĂů
ƐƚĂƚĞŵĞŶƚƐďĞĐĂƵƐĞƌĞƐŽƵƌĐĞƐŽĨƚŚŽƐĞĨƵŶĚƐĂƌĞŶŽƚĂǀĂŝůĂďůĞƚŽƐƵƉƉŽƌƚƚŚĞŝƚǇŽĨŚĞŶĞǇ͛Ɛ
ŽǁŶƉƌŽŐƌĂŵƐ͘dŚĞĂĐĐŽƵŶƚŝŶŐƵƐĞĚĨŽƌĨŝĚƵĐŝĂƌǇĨƵŶĚƐŝƐŵƵĐŚůŝŬĞƚŚĂƚƵƐĞĚĨŽƌƉƌŽƉƌŝĞƚĂƌǇ
ĨƵŶĚƐ͘

EŽƚĞƐƚŽƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ

dŚĞŶŽƚĞƐƉƌŽǀŝĚĞĂĚĚŝƚŝŽŶĂůŝŶĨŽƌŵĂƚŝŽŶƚŚĂƚŝƐĞƐƐĞŶƚŝĂůƚŽĂĨƵůůƵŶĚĞƌƐƚĂŶĚŝŶŐŽĨƚŚĞĚĂƚĂƉƌŽǀŝĚĞĚŝŶ
ƚŚĞŐŽǀĞƌŶŵĞŶƚͲǁŝĚĞĂŶĚĨƵŶĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘

'KsZEDEdͲt/&/EE/>E>z^/^

Ɛ ŶŽƚĞĚ ĞĂƌůŝĞƌ͕ ŶĞƚ ƉŽƐŝƚŝŽŶ ŵĂǇ ƐĞƌǀĞ ŽǀĞƌ ƚŝŵĞ ĂƐ Ă ƵƐĞĨƵů ŝŶĚŝĐĂƚŽƌ ŽĨ Ă ŐŽǀĞƌŶŵĞŶƚĂů ĨŝŶĂŶĐŝĂů
ƉŽƐŝƚŝŽŶ͘/ŶƚŚĞĐĂƐĞŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇ͕ĂƐƐĞƚƐĞǆĐĞĞĚĞĚůŝĂďŝůŝƚŝĞƐďǇΨϰϵ͕Ϯϴϲ͕ϬϲϯĂƚƚŚĞĐůŽƐĞŽĨϮϬϮϬ͕
ĂŶŝŶĐƌĞĂƐĞŽĨϲйŽǀĞƌϮϬϭϵ͘

ǇĨĂƌƚŚĞůĂƌŐĞƐƚƉŽƌƚŝŽŶŽĨƚŚĞŝƚǇ͛ƐŶĞƚƉŽƐŝƚŝŽŶ;ϳϰйͿƌĞĨůĞĐƚƐƚŚĞŝŶǀĞƐƚŵĞŶƚŝŶĐĂƉŝƚĂůĂƐƐĞƚƐ;Ğ͘Ő͘
ůĂŶĚ͕ďƵŝůĚŝŶŐƐ͕ĞƋƵŝƉŵĞŶƚ͕ŝŵƉƌŽǀĞŵĞŶƚƐ͕ĂŶĚŝŶĨƌĂƐƚƌƵĐƚƵƌĞͿ͖ůĞƐƐĂŶǇƌĞůĂƚĞĚŽƵƚƐƚĂŶĚŝŶŐĚĞďƚƵƐĞĚƚŽ
ĂĐƋƵŝƌĞ ƚŚŽƐĞ ĂƐƐĞƚƐ͘ dŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ ƵƐĞƐ ƚŚĞƐĞ ĐĂƉŝƚĂů ĂƐƐĞƚƐ ƚŽ ƉƌŽǀŝĚĞ ƐĞƌǀŝĐĞƐ ƚŽ ĐŝƚŝǌĞŶƐ͖
ĐŽŶƐĞƋƵĞŶƚůǇ͕ ƚŚĞƐĞ ĂƐƐĞƚƐ ĂƌĞ ŶŽƚ ĂǀĂŝůĂďůĞ ĨŽƌ ĨƵƚƵƌĞ ƐƉĞŶĚŝŶŐ͘ ůƚŚŽƵŐŚ ƚŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ͛Ɛ

Page 18

/dzK&,Ez͕t^,/E'dKE

ŝŶǀĞƐƚŵĞŶƚŝŶĐĂƉŝƚĂůĂƐƐĞƚƐŝƐƌĞƉŽƌƚĞĚŶĞƚŽĨƌĞůĂƚĞĚĚĞďƚ͕ŝƚƐŚŽƵůĚďĞŶŽƚĞĚƚŚĂƚƚŚĞƌĞƐŽƵƌĐĞƐŶĞĞĚĞĚ
ƚŽƌĞƉĂǇƚŚŝƐĚĞďƚŵƵƐƚďĞƉƌŽǀŝĚĞĚĨƌŽŵŽƚŚĞƌƐŽƵƌĐĞƐ͕ƐŝŶĐĞƚŚĞĐĂƉŝƚĂůĂƐƐĞƚƐƚŚĞŵƐĞůǀĞƐĐĂŶŶŽƚďĞ
ƵƐĞĚƚŽůŝƋƵŝĚĂƚĞƚŚĞƐĞůŝĂďŝůŝƚŝĞƐ͘

dŚĞƚĂďůĞďĞůŽǁŝůůƵƐƚƌĂƚĞƐĂĐŽŵƉĂƌĂƚŝǀĞǀŝĞǁŽĨEĞƚWŽƐŝƚŝŽŶĨŽƌďŽƚŚƚŚĞŐŽǀĞƌŶŵĞŶƚĂůĂŶĚďƵƐŝŶĞƐƐͲ
ƚǇƉĞĂĐƚŝǀŝƚŝĞƐĨŽƌƚŚĞĨŝƐĐĂůǇĞĂƌƐĞŶĚŝŶŐϮϬϮϬĂŶĚϮϬϭϵ͘

ŝƚǇŽĨŚĞŶĞǇ͕tĂƐŚŝŶŐƚŽŶʹEĞƚWŽƐŝƚŝŽŶ

'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐ ƵƐŝŶĞƐƐͲdǇƉĞĐƚŝǀŝƚŝĞƐ dŽƚĂů
ϮϬϮϬ ϮϬϭϵ ϮϬϮϬ ϮϬϭϵ ϮϬϮϬ ϮϬϭϵ

ƵƌƌĞŶƚĂŶĚKƚŚĞƌƐƐĞƚƐ ΨϭϬ͕ϱϮϴ͕ϮϮϬ Ψϵ͕ϲϴϬ͕ϲϬϮ Ψϭϭ͕ϭϲϲ͕ϭϭϳ Ψϵ͕ϵϱϮ͕ϲϰϵ ΨϮϭ͕ϲϵϰ͕ϯϯϳ Ψϭϵ͕ϲϯϯ͕Ϯϱϭ
ĂƉŝƚĂůƐƐĞƚƐ ϭϳ͕ϱϵϬ͕ϴϲϲ ϭϳ͕ϭϯϯ͕ϯϬϲ Ϯϰ͕ϱϮϱ͕Ϯϭϭ Ϯϰ͕ϴϱϱ͕ϰϰϳ ϰϮ͕ϭϭϲ͕Ϭϳϳ ϰϭ͕ϵϴϴ͕ϳϱϯ
dŽƚĂůƐƐĞƚƐ Ϯϴ͕ϭϭϵ͕Ϭϴϲ Ϯϲ͕ϴϭϯ͕ϵϬϴ ϯϱ͕ϲϵϭ͕ϯϮϴ ϯϰ͕ϴϬϴ͕Ϭϵϲ ϲϯ͕ϴϭϬ͕ϰϭϰ ϲϭ͕ϲϮϮ͕ϬϬϰ

ĞĨĞƌƌĞĚKƵƚĨůŽǁƐŽĨZĞƐŽƵƌĐĞƐ ϳϭϲ͕ϲϳϲ ϰϴϴ͕ϳϰϬ ϴϬϭ͕ϯϴϬ Ϯϱϰ͕ϳϵϭ ϭ͕ϱϭϴ͕Ϭϱϲ ϳϰϯ͕ϱϯϭ

>ŽŶŐͲdĞƌŵ>ŝĂďŝůŝƚŝĞƐKƵƚƐƚĂŶĚŝŶŐ ϱ͕ϳϵϲ͕ϭϲϴ ϰ͕ϵϯϵ͕ϭϭϮ ϱ͕ϳϯϬ͕ϭϳϯ ϱ͕ϴϬϴ͕ϳϯϬ ϭϭ͕ϱϮϲ͕ϯϰϭ ϭϬ͕ϳϰϳ͕ϴϰϮ
KƚŚĞƌ>ŝĂďŝůŝƚŝĞƐ ϵϱϴ͕ϵϵϲ ϵϲϵ͕ϳϴϯ Ϯ͕ϰϵϮ͕ϵϰϬ Ϯ͕ϯϳϵ͕ϵϵϬ ϯ͕ϰϱϭ͕ϵϯϲ ϯ͕ϯϰϵ͕ϳϳϯ
dŽƚĂů>ŝĂďŝůŝƚŝĞƐ ϲ͕ϳϱϱ͕ϭϲϰ ϱ͕ϵϬϴ͕ϴϵϱ ϴ͕ϮϮϯ͕ϭϭϯ ϴ͕ϭϴϴ͕ϳϮϬ ϭϰ͕ϵϳϴ͕Ϯϳϳ ϭϰ͕Ϭϵϳ͕ϲϭϱ

ĞĨĞƌƌĞĚ/ŶĨůŽǁƐŽĨZĞƐŽƵƌĐĞƐ ϲϱϳ͕ϱϳϱ ϭ͕ϬϱϬ͕ϬϬϴ ϰϬϲ͕ϱϱϱ ϱϵϬ͕ϲϯϬ ϭ͕Ϭϲϰ͕ϭϯϬ ϭ͕ϲϰϬ͕ϲϯϴ

EĞƚWŽƐŝƚŝŽŶ͗
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ϭϳ͕Ϭϱϳ͕ϰϬϲ ϭϲ͕ϱϱϴ͕ϯϬϲ ϭϵ͕ϰϵϭ͕ϭϵϯ ϭϵ͕ϭϬϴ͕ϯϲϬ ϯϲ͕ϱϰϴ͕ϱϵϵ ϯϱ͕ϲϲϲ͕ϲϲϲ
ZĞƐƚƌŝĐƚĞĚ ϯ͕ϵϰϬ͕ϵϵϴ ϯ͕ϬϮϵ͕Ϭϴϯ ϴϭϰ͕ϲϬϳ ϴϬϴ͕ϭϵϬ ϰ͕ϳϱϱ͕ϲϬϱ ϯ͕ϴϯϳ͕Ϯϳϯ
hŶƌĞƐƚƌŝĐƚĞĚ ϰϮϰ͕ϲϭϵ ϳϱϲ͕ϯϱϲ ϳ͕ϱϱϳ͕ϮϰϬ ϲ͕ϯϲϲ͕ϵϴϳ ϳ͕ϵϴϭ͕ϴϱϵ ϳ͕ϭϮϯ͕ϯϰϯ
dŽƚĂůEĞƚWŽƐŝƚŝŽŶ ΨϮϭ͕ϰϮϯ͕ϬϮϯ ΨϮϬ͕ϯϰϯ͕ϳϰϱ ΨϮϳ͕ϴϲϯ͕ϬϰϬ ΨϮϲ͕Ϯϴϯ͕ϱϯϳ Ψϰϵ͕Ϯϴϲ͕Ϭϲϯ Ψϰϲ͕ϲϮϳ͕ϮϴϮ

/ŶĂĚĚŝƚŝŽŶƚŽƚŚĞϳϰйŽĨŶĞƚƉŽƐŝƚŝŽŶŝŶǀĞƐƚĞĚŝŶĐĂƉŝƚĂůĂƐƐĞƚƐ͕ϭϬйŽĨŶĞƚƉŽƐŝƚŝŽŶŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇ
ƌĞƉƌĞƐĞŶƚƐƌĞƐŽƵƌĐĞƐƚŚĂƚĂƌĞƐƵďũĞĐƚƚŽĞǆƚĞƌŶĂůƌĞƐƚƌŝĐƚŝŽŶƐŽŶŚŽǁƚŚĞǇŵĂǇďĞƵƐĞĚ͘dŚĞƌĞŵĂŝŶŝŶŐ
ďĂůĂŶĐĞŽĨƵŶƌĞƐƚƌŝĐƚĞĚŶĞƚƉŽƐŝƚŝŽŶ͕Ψϳ͕ϵϴϭ͕ϴϱϵ;ϭϲйͿŵĂǇďĞƵƐĞĚƚŽŵĞĞƚƚŚĞŐŽǀĞƌŶŵĞŶƚ͛ƐŽŶŐŽŝŶŐ
ŽďůŝŐĂƚŝŽŶƚŽƚŚĞĐŝƚŝǌĞŶƐĂŶĚĐƌĞĚŝƚŽƌƐ͘

'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐ

'ŽǀĞƌŶŵĞŶƚĂů ĂĐƚŝǀŝƚŝĞƐ ŝŶĐƌĞĂƐĞĚ ƚŚĞ ŶĞƚ ƉŽƐŝƚŝŽŶ ŽĨ ƚŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ ďǇ Ψϭ͕Ϭϳϵ͕Ϯϳϴ͘ ůƚŚŽƵŐŚ
ŐŽǀĞƌŶŵĞŶƚĂůƌĞǀĞŶƵĞƐǁĞƌĞŝŵƉĂĐƚĞĚďǇKs/Ͳϭϵ͕ƚŚĞŝƚǇƚŽŽŬŐƌĞĂƚĐĂƌĞŝŶĂůƐŽƌĞĚƵĐŝŶŐĞǆƉĞŶƐĞƐ
ƐŽĞƐƚĂďůŝƐŚĞĚƌĞƐĞƌǀĞƐǁŽƵůĚŶŽƚďĞŶĞŐĂƚŝǀĞůǇŝŵƉĂĐƚĞĚ͘

WĂƌŬƐ ĂŶĚ ZĞĐƌĞĂƚŝŽŶ ƐĂǁ ƚŚĞ ůĂƌŐĞƐƚ ƌĞĚƵĐƚŝŽŶ ŝŶ ƌĞǀĞŶƵĞ ƚŚƌŽƵŐŚ ĐůĂƐƐ ĐĂŶĐĞůůĂƚŝŽŶƐ͘ tŝƚŚ ƚŚŽƐĞ
ĐĂŶĐĞůůĂƚŝŽŶƐ͕ƉƌŽŐƌĂŵĐŽƐƚƐǁĞƌĞĂůƐŽĞůŝŵŝŶĂƚĞĚůĞĂǀŝŶŐƚŚĞĨƵŶĚŝŶĂŶĞĂƌůǇŶĞƚǌĞƌŽŝŵƉĂĐƚ͘

<ĞǇĞůĞŵĞŶƚƐŽĨƚŚŝƐĐŚĂŶŐĞŝŶŶĞƚƉŽƐŝƚŝŽŶĂƌĞĚŝƐƉůĂǇĞĚŝŶƚŚĞƚĂďůĞŽŶƚŚĞĨŽůůŽǁŝŶŐƚĂďůĞ͗

Page 19

/dzK&,Ez͕t^,/E'dKE

ŝƚǇŽĨŚĞŶĞǇ͕tĂƐŚŝŶŐƚŽŶʹ^ƚĂƚĞŵĞŶƚŽĨĐƚŝǀŝƚŝĞƐ
'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐ ƵƐŝŶĞƐƐͲƚǇƉĞĐƚŝǀŝƚŝĞƐ dŽƚĂů

ZĞǀĞŶƵĞƐ͗
WƌŽŐƌĂŵZĞǀĞŶƵĞƐ
ŚĂƌŐĞƐĨŽƌ^ĞƌǀŝĐĞƐ Ψϭ͕ϰϴϴ͕ϬϲϬ ΨϮ͕ϰϴϮ͕Ϭϰϭ Ψϭϱ͕ϱϴϯ͕ϴϲϲ ϭϲ͕Ϯϲϭ͕ϳϯϯ Ψϭϳ͕Ϭϳϭ͕ϵϮϲ Ψϭϴ͕ϳϰϯ͕ϳϳϰ
KƉĞƌĂƚŝŶŐ'ƌĂŶƚƐͬŽŶƚƌŝďƵƚŝŽŶƐ ϳϮϳ͕ϭϭϴ ϱϰϭ͕ϰϬϮ ϯϵϲ͕ϴϴϲ Ϯϱϳ͕ϴϳϱ ϭ͕ϭϮϰ͕ϬϬϰ ϳϵϵ͕Ϯϳϳ
ĂƉŝƚĂů'ƌĂŶƚƐͬŽŶƚƌŝďƵƚŝŽŶƐ ϭ͕ϭϳϬ͕ϴϴϯ ϯϯϵ͕ϰϵϵ ϵϵϵ͕ϱϮϱ ϭ͕ϮϮϮ͕ϱϳϳ Ϯ͕ϭϳϬ͕ϰϬϴ ϭ͕ϱϲϮ͕Ϭϳϲ
'ĞŶĞƌĂůZĞǀĞŶƵĞƐ
WƌŽƉĞƌƚǇdĂǆ Ϯ͕ϱϯϮ͕ϴϰϰ Ϯ͕ϯϮϱ͕ϳϲϯ Ͳ Ͳ Ϯ͕ϱϯϮ͕ϴϰϰ Ϯ͕ϯϮϱ͕ϳϲϯ
ZĞƚĂŝů^ĂůĞƐͬhƐĞdĂǆ Ϯ͕Ϯϳϲ͕ϭϯϬ Ϯ͕ϱϳϭ͕ϱϭϭ Ͳ Ͳ Ϯ͕Ϯϳϲ͕ϭϯϬ Ϯ͕ϱϳϭ͕ϱϭϭ
hƚŝůŝƚǇdĂǆ Ϯ͕Ϯϱϰ͕Ϭϭϳ Ϯ͕ϯϵϯ͕ϱϮϰ Ͳ Ͳ Ϯ͕Ϯϱϰ͕Ϭϭϳ Ϯ͕ϯϵϯ͕ϱϮϰ
KƚŚĞƌ ϴϴϵ͕ϱϵϮ ϵϴϰ͕ϳϬϲ ϲϵ͕ϬϰϮ ϭϰϯ͕ϴϴϱ ϵϱϴ͕ϲϯϰ ϭ͕ϭϮϴ͕ϱϵϭ
dŽƚĂůZĞǀĞŶƵĞ ϭϭ͕ϯϯϴ͕ϲϰϰ ϭϭ͕ϲϯϴ͕ϰϰϲ ϭϳ͕Ϭϰϵ͕ϯϭϵ ϭϳ͕ϴϴϲ͕ϬϳϬ Ϯϴ͕ϯϴϳ͕ϵϲϯ Ϯϵ͕ϱϮϰ͕ϱϭϲ

ǆƉĞŶƐĞƐ͗
'ĞŶĞƌĂů'ŽǀĞƌŶŵĞŶƚ ϵϰϬ͕Ϭϰϯ ϳϯϳ͕ϬϮϴ Ͳ Ͳ ϵϰϬ͕Ϭϰϯ ϳϯϳ͕ϬϮϴ
:ƵĚŝĐŝĂů ϮϵϬ͕ϵϴϵ ϮϴϮ͕Ϯϲϯ Ͳ Ͳ ϮϵϬ͕ϵϴϵ ϮϴϮ͕Ϯϲϯ
WƵďůŝĐ^ĂĨĞƚǇ ϲ͕ϭϮϭ͕ϴϬϮ ϰ͕ϱϴϭ͕ϳϬϭ Ͳ Ͳ ϲ͕ϭϮϭ͕ϴϬϮ ϰ͕ϱϴϭ͕ϳϬϭ
dƌĂŶƐƉŽƌƚĂƚŝŽŶ ϭ͕ϰϭϮ͕ϴϵϵ ϭ͕ϱϯϳ͕Ϯϴϳ Ͳ Ͳ ϭ͕ϰϭϮ͕ϴϵϵ ϭ͕ϱϯϳ͕Ϯϴϳ
ĐŽŶŽŵŝĐŶǀŝƌŽŶŵĞŶƚ ϰϵϲ͕ϳϰϳ ϱϯϴ͕ϵϵϬ Ͳ Ͳ ϰϵϲ͕ϳϰϳ ϱϯϴ͕ϵϵϬ
DĞŶƚĂůͬWŚǇƐŝĐĂů,ĞĂůƚŚ ϯ͕ϱϱϳ ϯ͕ϯϮϯ Ͳ Ͳ ϯ͕ϱϱϳ ϯ͕ϯϮϯ
ƵůƚƵƌĞĂŶĚZĞĐƌĞĂƚŝŽŶ ϵϲϬ͕ϭϱϮ ϭ͕ϮϱϬ͕ϰϳϬ Ͳ Ͳ ϵϲϬ͕ϭϱϮ ϭ͕ϮϱϬ͕ϰϳϬ
/ŶƚĞƌĞƐƚ ϯϯ͕ϭϳϳ ϯϮ͕ϯϵϬ Ͳ Ͳ ϯϯ͕ϭϳϳ ϯϮ͕ϯϵϬ
ůĞĐƚƌŝĐ ϵ͕ϯϯϬ͕ϱϴϰ ϵ͕ϱϮϱ͕Ϯϯϴ ϵ͕ϯϯϬ͕ϱϴϰ ϵ͕ϱϮϱ͕Ϯϯϴ
tĂƚĞƌ ϭ͕ϱϵϴ͕ϯϴϬ Ϯ͕ϭϲϰ͕Ϭϳϵ ϭ͕ϱϵϴ͕ϯϴϬ Ϯ͕ϭϲϰ͕Ϭϳϵ
^ŽůŝĚtĂƐƚĞ ϭ͕ϱϬϵ͕ϭϬϰ ϭ͕ϰϲϬ͕ϳϱϭ ϭ͕ϱϬϵ͕ϭϬϰ ϭ͕ϰϲϬ͕ϳϱϭ
^ĞǁĞƌ ϯ͕Ϭϯϭ͕ϳϰϴ Ϯ͕ϳϴϮ͕ϴϰϴ ϯ͕Ϭϯϭ͕ϳϰϴ Ϯ͕ϳϴϮ͕ϴϰϴ
dŽƚĂůǆƉĞŶƐĞƐ ϭϬ͕Ϯϱϵ͕ϯϲϲ ϴ͕ϵϲϯ͕ϰϱϮ ϭϱ͕ϰϲϵ͕ϴϭϲ ϭϱ͕ϵϯϮ͕ϵϭϲ Ϯϱ͕ϳϮϵ͕ϭϴϮ ϭϱ͕ϵϯϮ͕ϵϭϲ

ŚĂŶŐĞŝŶEĞƚWŽƐŝƚŝŽŶ ϭ͕Ϭϳϵ͕Ϯϳϴ Ϯ͕ϲϳϰ͕ϵϵϰ ϭ͕ϱϳϵ͕ϱϬϯ ϭ͕ϵϱϯ͕ϭϱϰ Ϯ͕ϲϱϴ͕ϳϴϭ ϰ͕ϲϮϴ͕ϭϰϴ
EĞƚWŽƐŝƚŝŽŶʹ:ĂŶƵĂƌǇϭ ϮϬ͕ϯϰϯ͕ϳϰϱ ϭϳ͕ϲϲϴ͕ϳϱϭ Ϯϲ͕Ϯϴϯ͕ϱϯϳ Ϯϰ͕ϯϯϬ͕ϯϴϯ ϰϲ͕ϲϮϳ͕ϮϴϮ ϰϭ͕ϵϵϵ͕ϭϯϰ
EĞƚWŽƐŝƚŝŽŶʹĞĐĞŵďĞƌϯϭ ΨϮϭ͕ϰϮϯ͕ϬϮϯ ΨϮϬ͕ϯϰϯ͕ϳϰϱ ΨϮϳ͕ϴϲϯ͕ϬϰϬ ΨϮϲ͕Ϯϴϯ͕ϱϯϳ Ψϰϵ͕Ϯϴϲ͕Ϭϲϯ Ψϰϲ͕ϲϮϳ͕ϮϴϮ

dŚĞƚŽƚĂůŐŽǀĞƌŶŵĞŶƚĂůƌĞǀĞŶƵĞŝŶϮϬϮϬĚĞĐƌĞĂƐĞĚďǇϯйǁŝƚŚĚĞĐƌĞĂƐĞƐŝŶĐŚĂƌŐĞƐĨŽƌƐĞƌǀŝĐĞƐ͕ƐĂůĞƐƚĂǆ͕
ĂŶĚƵƚŝůŝƚǇƚĂǆ͘WƌŽƉĞƌƚǇƚĂǆŵĂŝŶƚĂŝŶĞĚĂƐƚĞĂĚǇŝŶĐƌĞĂƐĞĂŶĚŐƌĂŶƚƐƐĂǁĂŵĂƌŬĞĚŝŶĐƌĞĂƐĞĚƵĞƚŽ
ĨĞĚĞƌĂůĐŽǀŝĚĨƵŶĚŝŶŐ͘
dŚĞŐƌĂƉŚƐďĞůŽǁŝůůƵƐƚƌĂƚĞƚŚĞďƌĞĂŬŽƵƚŽĨŐŽǀĞƌŶŵĞŶƚĂůƌĞǀĞŶƵĞƐ͕ĞǆƉĞŶƐĞƐ͕ĂŶĚƚŚĞƐƉĞĐŝĨŝĐĂůůŽĐĂƚŝŽŶ
ŽĨĂůůŐŽǀĞƌŶŵĞŶƚĂůƌĞǀĞŶƵĞƐ͘

Page 20

/dzK&,Ez͕t^,/E'dKE

WƌŽŐƌĂŵZĞǀĞŶƵĞƐĂŶĚǆƉĞŶƐĞƐ
ϵ͕ϬϬϬ͕ϬϬϬ
ϴ͕ϬϬϬ͕ϬϬϬ
ϳ͕ϬϬϬ͕ϬϬϬ
ϲ͕ϬϬϬ͕ϬϬϬ
ϱ͕ϬϬϬ͕ϬϬϬ
ϰ͕ϬϬϬ͕ϬϬϬ
ϯ͕ϬϬϬ͕ϬϬϬ
Ϯ͕ϬϬϬ͕ϬϬϬ
ϭ͕ϬϬϬ͕ϬϬϬ
Ͳ
ZĞǀĞŶƵĞƐ
ǆƉĞŶƐĞƐ

ZĞǀĞŶƵĞďǇ^ŽƵƌĐĞ
KƚŚĞƌ
ϭй ŚĂƌŐĞƐĨŽƌ
^ĞƌǀŝĐĞƐ
KƉĞƌĂƚŝŶŐ'ƌĂŶƚƐ
ϭϯй
ǆĐŝƐĞdĂǆĞƐ ĂŶĚŽŶƌŝďƵƚŝŽŶƐ
ϴй ϲй
hƚŝůŝƚǇdĂǆĞƐ
ĂƉƚŝĂů'ƌĂŶƚƐ
ϮϬй
ĂŶĚŽŶƚƌŝďƵƚŝŽŶƐ
ϭϬй
ZĞƚĂŝů^ĂůĞƐdĂǆ
ϮϬй
WƌŽƉĞƌƚǇdĂǆ
ϮϮй

Page 21

/dzK&,Ez͕t^,/E'dKE

ƵƐŝŶĞƐƐͲdǇƉĞĐƚŝǀŝƚŝĞƐ

ƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐŶĞƚƉŽƐŝƚŝŽŶŝŶĐƌĞĂƐĞĚŝŶϮϬϮϬďǇΨϭ͕ϱϳϵ͕ϱϬϯ͘dŚĞŝŶĐƌĞĂƐĞ͕ŝŶƉĂƌƚ͕ŝƐĚƵĞƚŽƚŚĞ
ƉĂŶĚĞŵŝĐĂŶĚƚŚĞĂĚĚŝƚŝŽŶĂůƚŝŵĞƌĞƐŝĚĞŶƚƐƐƉĞŶƚŝŶƚŚĞŝƌƌĞƐŝĚĞŶĐĞ͘tŚŝůĞŵŽƐƚƐĞƌǀŝĐĞƐƌĞŵĂŝŶĞĚĂĐƚŝǀĞ͕
ďĂƐĞ ĐŚĂƌŐĞƐ ǁĞƌĞ ƚŚĞ ŽŶůǇ ƌĞǀĞŶƵĞ ůĞĂǀŝŶŐ Ă ƐŚŽƌƚĨĂůů ŝŶ ĂŶƚŝĐŝƉĂƚĞĚ ƵƚŝůŝƚǇ ƵƐĂŐĞ ĐŚĂƌŐĞƐ͘ tŝƚŚ ƚŚĞ
ƌĞĚƵĐƚŝŽŶŽĨƌĞǀĞŶƵĞƐ͕ŵĂŶǇƉƌŽũĞĐƚƐǁĞƌĞĚĞůĂǇĞĚƵŶƚŝůĂĐŽŶƐŝƐƚĞŶƚƌĞǀĞŶƵĞƌĂƚĞƐƚƌĞĂŵŝƐƌĞƐƚŽƌĞĚ͘

ZĞǀĞŶƵĞĂŶĚǆƉĞŶƐĞƐ
ϭϮ͕ϬϬϬ͕ϬϬϬ
ϭϬ͕ϬϬϬ͕ϬϬϬ
ϴ͕ϬϬϬ͕ϬϬϬ
ϲ͕ϬϬϬ͕ϬϬϬ ZĞǀĞŶƵĞ
ǆƉĞŶƐĞƐ
ϰ͕ϬϬϬ͕ϬϬϬ
Ϯ͕ϬϬϬ͕ϬϬϬ
Ͳ
>ŝŐŚƚ tĂƚĞƌ ^ŽůŝĚtĂƐƚĞ ^ĞǁĞƌ

ZĞǀĞŶƵĞďǇ^ŽƵƌĐĞ ĂƉŝƚĂů'ƌĂŶƚƐ
ĂŶĚŽŶƚƌŝďƵƚŝŽŶƐ
KƉĞƌĂƚŝŶŐ'ƌĂŶƚƐ ϲй
ĂŶĚ
ŽŶƚƌŝďƵƚŝŽŶƐ
ϯй
ŚĂƌŐĞƐĨŽƌ
^ĞƌǀŝĐĞƐ
ϵϭй

Page 22

/dzK&,Ez͕t^,/E'dKE

&/EE/>E>z^/^K&'KsZEDEd͛^&hE^

ƐŶŽƚĞĚĞĂƌůŝĞƌ͕ƚŚĞŝƚǇŽĨŚĞŶĞǇƵƐĞƐĨƵŶĚĂĐĐŽƵŶƚŝŶŐƚŽĞŶƐƵƌĞĂŶĚĚĞŵŽŶƐƚƌĂƚĞĐŽŵƉůŝĂŶĐĞǁŝƚŚ
ĨŝŶĂŶĐĞͲƌĞůĂƚĞĚůĞŐĂůƌĞƋƵŝƌĞŵĞŶƚƐ͘

'ŽǀĞƌŶŵĞŶƚĂů&ƵŶĚƐ

dŚĞ ĨŽĐƵƐ ŽĨ ƚŚĞŝƚǇŽĨ ŚĞŶĞǇ͛Ɛ ŐŽǀĞƌŶŵĞŶƚĂů ĨƵŶĚƐ ŝƐ ƚŽ ƉƌŽǀŝĚĞ ŝŶĨŽƌŵĂƚŝŽŶ ŽŶ ŶĞĂƌͲƚĞƌŵ ŝŶĨůŽǁƐ͕
ŽƵƚĨůŽǁƐ͕ ĂŶĚ ďĂůĂŶĐĞƐ ŽĨ ŶŽŶͲƐƉĞŶĚĂďůĞ͕ ƌĞƐƚƌŝĐƚĞĚ͕ ĐŽŵŵŝƚƚĞĚ͕ ĂƐƐŝŐŶĞĚ ĂŶĚ ƵŶĂƐƐŝŐŶĞĚ ƌĞƐŽƵƌĐĞƐ͘
^ƵĐŚŝŶĨŽƌŵĂƚŝŽŶŝƐƵƐĞĨƵůŝŶĂƐƐĞƐƐŝŶŐƚŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐĨŝŶĂŶĐŝĂůƌĞƋƵŝƌĞŵĞŶƚƐ͘ŶƵŶĂƐƐŝŐŶĞĚĨƵŶĚ
ďĂůĂŶĐĞŵĂǇƐĞƌǀĞĂƐĂƵƐĞĨƵůŵĞĂƐƵƌĞŽĨĂŐŽǀĞƌŶŵĞŶƚ͛ƐŶĞƚƌĞƐŽƵƌĐĞƐĂǀĂŝůĂďůĞĨŽƌƐƉĞŶĚŝŶŐĂƚƚŚĞĞŶĚ
ŽĨƚŚĞĨŝƐĐĂůǇĞĂƌ͘

ƚƚŚĞĐůŽƐĞŽĨϮϬϮϬ͕ƚŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐďĂůĂŶĐĞƐŚĞĞƚƌĞƉŽƌƚĞĚĐŽŵďŝŶĞĚĞŶĚŝŶŐ
ĨƵŶĚďĂůĂŶĐĞƐ;ĂůůƚǇƉĞƐͿŽĨΨϴ͕ϳϰϱ͕Ϯϱϴ͕ĂŶŝŶĐƌĞĂƐĞŽĨΨϴϱϴ͕ϱϱϳŝŶĐŽŵƉĂƌŝƐŽŶǁŝƚŚƚŚĞƉƌŝŽƌǇĞĂƌ͘dŚĞ
ŝƚǇĐŽŶƚŝŶƵĞƐƚŽĐĂƌĞĨƵůůǇƐƚƵĚǇƌĞǀĞŶƵĞƐĂŶĚĞǆƉĞŶƐĞƐŝŶĂůůĨƵŶĚƐ͘ϮϬϮϬŵĂƌŬƐƚŚĞĨŝŶĂůǇĞĂƌŽĨƚŚĞ
ǀŽƚĞƌĂƉƉƌŽǀĞĚůĞǀǇůŝĨƚ͘dŚĞůŽƐƐŽĨƚŚŝƐĨƵŶĚŝŶŐǁŝůůŝŵƉĂĐƚƉƵďůŝĐƐĂĨĞƚǇĂŶĚƚŚĞŝƌĂďŝůŝƚǇŵĂŝŶƚĂŝŶƚŚĞŝƌ
ƉƌŽŐƌĂŵƐĂŶĚĞƋƵŝƉŵĞŶƚŶĞĞĚƐ͘^ƚƵĚǇĂŶĚĐŽŶƐŝĚĞƌĂƚŝŽŶŝƐďĞŝŶŐŐŝǀĞŶƚŽĂƌĞƉůĂĐĞŵĞŶƚϲǇĞĂƌůĞǀǇůŝĨƚ͘

dŚĞŐĞŶĞƌĂůĨƵŶĚŝƐƚŚĞĐŚŝĞĨŽƉĞƌĂƚŝŶŐĨƵŶĚŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇ͘ƚƚŚĞĐůŽƐĞŽĨϮϬϮϬ͕Ψϯ͕ϵϳϮ͕ϱϯϰŝƐ
ƵŶĂƐƐŝŐŶĞĚĂŶĚĂǀĂŝůĂďůĞĨŽƌƐƉĞŶĚŝŶŐĂƚƚŚĞŝƚǇ͛ƐĚŝƐĐƌĞƚŝŽŶ͘ƐĂŵĞĂƐƵƌĞŽĨƚŚĞŐĞŶĞƌĂůĨƵŶĚ͛ƐůŝƋƵŝĚŝƚǇ͕
ŝƚŝƐƵƐĞĨƵůƚŽĐŽŵƉĂƌĞƚŚĞƚŽƚĂůŽĨƵŶĂƐƐŝŐŶĞĚ͕ĂƐƐŝŐŶĞĚĂŶĚĐŽŵŵŝƚƚĞĚĨƵŶĚďĂůĂŶĐĞƚŽƚŽƚĂůŐĞŶĞƌĂůĨƵŶĚ
ĞǆƉĞŶĚŝƚƵƌĞƐ͘ /Ŷ ϮϬϮϬ͕ ƚŚĂƚ ĨƵŶĚ ďĂůĂŶĐĞ ƌĂƚŝŽ ŝƐ ϱϱй ĐŽŵƉĂƌĞĚ ƚŽϱϮй ĨŽƌ ƚŚĞ ƉƌŝŽƌ ĨŝƐĐĂůǇĞĂƌ͘ dŚĞ
ĚŝĨĨĞƌĞŶĐĞŝŶƚŚĞƌĂƚŝŽŝƐƌĞƐƵůƚŝŶŐĨƌŽŵƚŚĞŝŶĐƌĞĂƐĞĚƵŶĂƐƐŝŐŶĞĚĨƵŶĚďĂůĂŶĐĞ͘

WƌŽƉƌŝĞƚĂƌǇ&ƵŶĚƐ

dŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐƉƌŽƉƌŝĞƚĂƌǇĨƵŶĚƐƉƌŽǀŝĚĞƚŚĞƐĂŵĞƚǇƉĞŽĨŝŶĨŽƌŵĂƚŝŽŶĨŽƵŶĚŝŶƚŚĞŐŽǀĞƌŶŵĞŶƚͲ
ǁŝĚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐďƵƚŝŶŵŽƌĞĚĞƚĂŝů͘dŚĞŶĞƚƉŽƐŝƚŝŽŶĂƚƚŚĞĐůŽƐĞŽĨϮϬϮϬĨŽƌĂůůĨŽƵƌƵƚŝůŝƚŝĞƐŝƐ
ĂƐĨŽůůŽǁƐ͗

ŝƚǇŽĨŚĞŶĞǇ͕tĂƐŚŝŶŐƚŽŶʹZĞĐĂƉŽĨWƌŽƉƌŝĞƚĂƌǇ&ƵŶĚƐEĞƚWŽƐŝƚŝŽŶ

&ƵŶĚ hŶƌĞƐƚƌŝĐƚĞĚEĞƚWŽƐŝƚŝŽŶ dŽƚĂůEĞƚWŽƐŝƚŝŽŶ

>ŝŐŚƚ Ψϱ͕ϰϳϳ͕ϴϬϭ Ψϭϭ͕ϳϳϰ͕ϳϬϴ
tĂƚĞƌ Ͳϰϱϯ͕ϭϵϰ ϲ͕Ϯϭϱ͕ϰϬϲ
^ŽůŝĚtĂƐƚĞ ϳϴϵ͕ϯϯϱ ϭ͕ϳϳϳ͕ϯϴϲ
^ĞǁĞƌ ϭ͕ϳϰϯ͕Ϯϵϴ ϴ͕Ϭϵϱ͕ϱϰϬ
dŽƚĂů Ψϳ͕ϱϱϳ͕ϮϰϬ ΨϮϳ͕ϴϲϯ͕ϬϰϬ

'EZ>&hEh'dZz,/',>/',d^

dŚĞĨŽůůŽǁŝŶŐƚĂďůĞŝůůƵƐƚƌĂƚĞƐƚŚĞŐĞŶĞƌĂůĨƵŶĚďƵĚŐĞƚŝŶĐůƵĚŝŶŐƚŚĞŽƌŝŐŝŶĂůďƵĚŐĞƚ͕ĂŵĞŶĚŵĞŶƚƐ͕ĨŝŶĂů
ďƵĚŐĞƚĂŶĚĂĐƚƵĂůĨƵŶĚĞǆƉĞŶƐĞĚ͘&ŽƌƉƵƌƉŽƐĞƐŽĨƚŚŝƐĚŝƐĐůŽƐƵƌĞ͕ŽƚŚĞƌĨŝŶĂŶĐŝŶŐƵƐĞƐĂƌĞĂůƐŽŝŶĐůƵĚĞĚ
ŝŶƚŚŝƐƚĂďůĞĂƐŝƐĞŶĚŝŶŐĨƵŶĚďĂůĂŶĐĞ͘ĚĞƚĂŝůďƵĚŐĞƚƚŽĂĐƚƵĂůƐƚĂƚĞŵĞŶƚƐŝƐƉƌĞƐĞŶƚĞĚǁŝƚŚƚŚĞĨŝŶĂŶĐŝĂů
ƐƚĂƚĞŵĞŶƚƐůĂƚĞƌŝŶƚŚŝƐĚŽĐƵŵĞŶƚ͘

Page 23

/dzK&,Ez͕t^,/E'dKE

'ĞŶĞƌĂů&ƵŶĚ
KƌŝŐŝŶĂů ŵĞŶĚŵĞŶƚƐ &ŝŶĂů ĐƚƵĂů ƵĚŐĞƚsĂƌŝĂŶĐĞ
ƵĚŐĞƚ ƵĚŐĞƚ
Ψϵ͕ϭϵϬ͕ϬϬϬ Ψϭϲϭ͕ϵϬϬ Ψϵ͕ϯϱϭ͕ϵϬϬ Ψϳ͕ϳϴϳ͕ϰϬϴ Ψϭ͕ϱϲϰ͕ϰϵϮ

dŚĞƉŽƐŝƚŝǀĞďƵĚŐĞƚǀĂƌŝĂŶĐĞŝƐƉƌŝŵĂƌŝůǇƚŚĞƌĞƐƵůƚŽĨƚŚĞĂůůŽĐĂƚŝŽŶŽĨĨŝŶĂŶĐĞĂŶĚĞǆĞĐƵƚŝǀĞĐŚĂƌŐĞƐƚŽ
ƚŚĞƉƌŽƉƌŝĞƚĂƌǇĨƵŶĚƐ͘dŚĞĐŽƐƚŝƐƚƌĂŶƐĨĞƌƌĞĚƚŽƚŚŽƐĞĨƵŶĚƐ͕ƌĞŵŽǀŝŶŐƚŚĞĞǆƉĞŶƐĞĨƌŽŵƚŚĞŐĞŶĞƌĂů
ĨƵŶĚ͘

W/d>^^dEdD/E/^dZd/KE

ĂƉŝƚĂůƐƐĞƚƐ

dŚĞ ŝƚǇŽĨ ŚĞŶĞǇ͛Ɛ ŝŶǀĞƐƚŵĞŶƚ ŝŶ ĐĂƉŝƚĂů ĂƐƐĞƚƐ ĨŽƌ ŝƚƐ ŐŽǀĞƌŶŵĞŶƚ ĂŶĚ ďƵƐŝŶĞƐƐͲƚǇƉĞ ĂĐƚŝǀŝƚŝĞƐ ĂƐ ŽĨ
ĞĐĞŵďĞƌϯϭ͕ϮϬϮϬĂŵŽƵŶƚƐƚŽΨϰϮ͕ϭϭϲ͕Ϭϳϳ;ŶĞƚŽĨĂĐĐƵŵƵůĂƚĞĚĚĞƉƌĞĐŝĂƚŝŽŶͿ͘dŚŝƐŝŶǀĞƐƚŵĞŶƚŝŶĐĂƉŝƚĂů
ĂƐƐĞƚƐ ŝŶĐůƵĚĞƐ ůĂŶĚ͕ ďƵŝůĚŝŶŐ͕ ŝŵƉƌŽǀĞŵĞŶƚƐ͕ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ ŵĂĐŚŝŶĞƌǇ ĂŶĚ ĞƋƵŝƉŵĞŶƚ͕ ĂŶĚ ƉĂƌŬ
ĨĂĐŝůŝƚŝĞƐ͘dŚĞƚŽƚĂůŝŶĐƌĞĂƐĞŝŶƚŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐŝŶǀĞƐƚŵĞŶƚŝŶĐĂƉŝƚĂůĂƐƐĞƚƐĨŽƌƚŚĞĐƵƌƌĞŶƚĨŝƐĐĂůǇĞĂƌ
ǁĂƐ͘ϯй;ϯйŝŶĐƌĞĂƐĞŝŶŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐĂŶĚϭйĚĞĐƌĞĂƐĞŝŶďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐͿ͘

DĂũŽƌĐĂƉŝƚĂůĂƐƐĞƚƐĞǀĞŶƚƐ;ŽǀĞƌΨϱϬ͕ϬϬϬͿƉƵƌĐŚĂƐĞĚϮϬϮϬŝŶĐůƵĚĞĚƚŚĞĨŽůůŽǁŝŶŐ͗

x &ŝƌĞ^ƚĂƚŝŽŶZŽŽĨWƌŽũĞĐƚ
x &ŝƌĞĞƉĂƌƚŵĞŶƚŝƌWĂĐŬƐ
x WĞĚĞƐƚƌŝĂŶͬŝĐǇĐůĞ^ĂĨĞƚǇ^ƚƌĞĞƚWƌŽũĞĐƚ
x ƌƚĞƌŝĂů^ƚƌĞĞƚʹtĂƐŚŝŶŐƚŽŶ^ƚWƌŽũĞĐƚ
x WŽůŝĐĞĂƌ;ϮͿ
x >ŝŐŚƚʹŽǀĞƌĞĚ^ƚŽƌĂŐĞWƌŽũĞĐƚ
x >ŝŐŚƚʹEĞǁƵŵƉdƌƵĐŬ
x >ŝŐŚƚͲ&ŝŶĂŶĐĞĞƉĂƌƚŵĞŶƚZĞŵŽĚĞůʹŵƉůŽǇĞĞ^ĞƉĂƌĂƚŝŽŶ
x tĂƚĞƌʹtĞůůηϯWƌŽũĞĐƚĂŶĚWƵŵƉ,ŽƵƐĞ
x ^ĞǁĞƌʹEĞǁĂŵĞƌĂsĂŶ
x ^ĞǁĞƌʹWƵƌƉůĞWŝƉĞWƌŽũĞĐƚ

ŝƚǇŽĨŚĞŶĞǇ͕tĂƐŚŝŶŐƚŽŶʹ ĂƉŝƚĂůƐƐĞƚƐ;ŶĞƚŽĨĚĞƉƌĞĐŝĂƚŝŽŶͿ

>ĂŶĚ Ψϭ͕ϮϬϲ͕ϱϳϬ Ψϭ͕ϮϬϲ͕ϱϳϬ Ψϵϯϯ͕Ϭϱϴ Ψϵϯϯ͕Ϭϱϴ ΨϮ͕ϭϯϵ͕ϲϮϴ ΨϮ͕ϭϯϵ͕ϲϮϴ
ƵŝůĚŝŶŐƐ ϭ͕ϰϳϴ͕ϯϲϭ ϭ͕ϱϯϬ͕Ϭϳϳ ϵ͕ϰϳϰ͕ϴϲϯ ϵ͕ϲϵϭ͕ϳϲϲ ϭϬ͕ϵϱϯ͕ϮϮϰ ϭϭ͕ϮϮϭ͕ϴϰϯ
/ŵƉƌŽǀĞŵĞŶƚƐ Ͳ Ͳ ϭ͕ϴϬϱ͕ϳϮϮ ϭ͕ϴϮϵ͕ϵϯϭ ϭ͕ϴϬϱ͕ϳϮϮ ϭ͕ϴϮϵ͕ϵϯϭ
/ŶĨƌĂƐƚƌƵĐƚƵƌĞ ϭϯ͕Ϭϯϳ͕ϴϯϲ ϭϮ͕ϲϮϴ͕ϵϬϱ ϵ͕ϭϭϰ͕ϵϰϮ ϵ͕Ϭϱϴ͕ϯϴϮ ϮϮ͕ϭϱϮ͕ϳϳϴ Ϯϭ͕ϲϴϳ͕Ϯϴϳ
ƋƵŝƉŵĞŶƚ ϭ͕ϴϱϲ͕ϲϮϲ ϭ͕ϳϲϳ͕ϭϲϴ ϯ͕ϭϵϲ͕ϰϯϯ ϯ͕ϮϴϬ͕ϰϳϯ ϱ͕Ϭϱϯ͕Ϭϱϵ ϱ͕Ϭϰϳ͕ϲϰϭ
ŽŶƐƚƌƵĐƚŝŽŶŝŶWƌŽŐƌĞƐƐ ϭϭ͕ϰϳϯ ϱϴϲ ϭϵϯ ϲϭ͕ϴϯϳ ϭϭ͕ϲϲϲ ϲϮ͕ϰϮϯ
dŽƚĂů Ψϭϳ͕ϱϵϬ͕ϴϲϲ Ψϭϳ͕ϭϯϯ͕ϯϬϲ ΨϮϰ͕ϱϮϱ͕Ϯϭϭ ΨϮϰ͕ϴϱϱ͕ϰϰϳ ΨϰϮ͕ϭϭϲ͕Ϭϳϳ Ψϰϭ͕ϵϴϴ͕ϳϱϯ
&ŽƌĂĚĚŝƚŝŽŶĂůĚĞƚĂŝůĞĚĐĂƉŝƚĂůĂƐƐĞƚŝŶĨŽƌŵĂƚŝŽŶ͕ƉůĞĂƐĞƐĞĞEŽƚĞϲͲĂƉŝƚĂůƐƐĞƚƐ͘

Page 24

/dzK&,Ez͕t^,/E'dKE

>ŽŶŐͲdĞƌŵĞďƚ

ƚƚŚĞĞŶĚŽĨϮϬϮϬ͕ƚŚĞŝƚǇŽĨŚĞŶĞǇŚĂĚůŽŶŐͲƚĞƌŵĚĞďƚƚŽƚĂůŝŶŐΨϲ͕ϱϰϮ͕ϭϭϯŝŶďŽƚŚŐŽǀĞƌŶŵĞŶƚĂůĂŶĚ
ďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐ͘KĨƚŚŝƐƚŽƚĂůĚĞďƚ͕Ψϭϭϴ͕ϯϲϵŝƐďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐĚƵĞĨŽƌWƵďůŝĐtŽƌŬƐdƌƵƐƚ
&ƵŶĚ>ŽĂŶƐ͕Ψϰ͕ϵϭϱ͕ϲϱϵƌĞƉƌĞƐĞŶƚƐďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐĨŽƌĞƉĂƌƚŵĞŶƚŽĨĐŽůŽŐǇ>ŽĂŶƐ͘Ψϴϴ͕ϱϰϭŝƐ
ĂŐŽǀĞƌŶŵĞŶƚĂůĐĂƉŝƚĂůůĞĂƐĞĂŶĚΨϰϳϬ͕ϬϬϬƌĞƉƌĞƐĞŶƚƐƚŚĞĚĞďƚĨƌŽŵƚŚĞtĂƐŚŝŶŐƚŽŶ^ƚĂƚĞ>ŽĐĂůWƌŽŐƌĂŵ͘
/ŶƚĞƌĨƵŶĚĞďƚĐŽŶƐŝƐƚƐŽĨΨϭϳϰ͕ϱϱϰŝŶŐŽǀĞƌŶŵĞŶƚĂůŝŶƚĞƌĨƵŶĚůŽĂŶƐĨŽƌƋƵŝƉŵĞŶƚZĞŶƚĂůWƵƌĐŚĂƐĞƐ͕ĂŶĚ
Ψϳϳϰ͕ϵϵϬŝŶďƵƐŝŶĞƐƐͲƚǇƉĞŝŶƚĞƌĨƵŶĚůŽĂŶƐ͘

ŝƚǇŽĨŚĞŶĞǇ͕tĂƐŚŝŶŐƚŽŶʹKƵƚƐƚĂŶĚŝŶŐĞďƚ

Wt<^dƌƵƐƚ&ƵŶĚ ΨͲ ΨͲ Ψϭϭϴ͕ϯϲϵ ΨϭϰϮ͕ϬϰϮ Ψϭϭϴ͕ϯϲϵ ΨϭϰϮ͕ϬϰϮ
ĞƉĂƌƚŵĞŶƚŽĨĐŽůŽŐǇ Ͳ Ͳ ϰ͕ϵϭϱ͕ϲϱϵ ϱ͕ϲϬϱ͕Ϭϰϱ ϰ͕ϵϭϱ͕ϲϱϵ ϱ͕ϲϬϱ͕Ϭϰϱ
/ŶƚĞƌĨƵŶĚ>ŽĂŶ ϭϳϰ͕ϱϱϰ ϭϵϳ͕ϳϭϱ ϳϳϰ͕ϵϵϬ Ͳ ϵϰϵ͕ϱϰϰ ϭϵϳ͕ϳϭϱ
ĂƉŝƚĂů>ĞĂƐĞ ϴϴ͕ϱϰϭ ϰϯ͕ϰϲϯ Ͳ Ͳ ϴϴ͕ϱϰϭ ϰϯ͕ϰϲϯ
t^ddƌĞĂƐƵƌĞƌͬ>K> ϰϳϬ͕ϬϬϬ ϱϬϬ͕ϬϬϬ Ͳ Ͳ ϰϳϬ͕ϬϬϬ ϱϬϬ͕ϬϬϬ
dŽƚĂů Ψϳϯϯ͕Ϭϵϱ Ψϳϰϭ͕ϭϳϴ Ψϱ͕ϴϬϵ͕Ϭϭϴ Ψϱ͕ϳϰϳ͕Ϭϴϳ Ψϲ͕ϱϰϮ͕ϭϭϯ Ψϲ͕ϰϴϴ͕Ϯϲϱ
dŚĞŝƚǇŽĨŚĞŶĞǇ͛ƐƚŽƚĂůůŽŶŐͲƚĞƌŵĚĞďƚŝŶĐƌĞĂƐĞĚďǇΨϱϯ͕ϴϰϴ;ϰйͿ͘

&ŽƌĂĚĚŝƚŝŽŶĂůĚĞƚĂŝůĞĚůŽŶŐͲƚĞƌŵĚĞďƚŝŶĨŽƌŵĂƚŝŽŶ͕ŝŶĐůƵĚŝŶŐƐŚŽƌƚƚĞƌŵĚĞďƚƉĂǇĂďůĞŝŶϮϬϮϬ͕ƉůĞĂƐĞƐĞĞ
EŽƚĞϭϮͲ>ŽŶŐͲdĞƌŵ>ŝĂďŝůŝƚŝĞƐ͘

KEKD/&dKZ^E,Ez/Ed,&hdhZ

dŚĞ^ƚĂƚĞŽĨtĂƐŚŝŶŐƚŽŶŽƉĞƌĂƚĞƐƉƌŝŵĂƌŝůǇƵƐŝŶŐƉƌŽƉĞƌƚǇ͕ƐĂůĞƐ͕ƵƚŝůŝƚǇĂŶĚŐĂƐƚĂǆĞƐ͘/ŶĐŽŵƉĂƌŝƐŽŶ͕
ƚŚĞŝƚǇŽĨŚĞŶĞǇƉƌŝŵĂƌŝůǇƌĞůŝĞƐŽŶƐĂůĞƐ͕ƉƌŽƉĞƌƚǇĂŶĚƵƚŝůŝƚǇƚĂǆĞƐ͕ŝŶĂĚĚŝƚŝŽŶƚŽĂůŝŵŝƚĞĚĂƌƌĂǇŽĨ
ƉĞƌŵŝƚƚĞĚŽƚŚĞƌƚĂǆĞƐ͕ĨĞĞƐ͕ĂŶĚƐƚĂƚĞĂŶĚĨĞĚĞƌĂůŐƌĂŶƚƐƚŽƐƵƉƉŽƌƚŐŽǀĞƌŶŵĞŶƚĂůĂĐƚŝǀŝƚŝĞƐ͘KǀĞƌƚŚĞ
ƉĂƐƚ ĚĞĐĂĚĞ͕ ƐƚĂƚĞ ƐŚĂƌĞĚ ƌĞǀĞŶƵĞƐ ŚĂǀĞ ĚĞĐƌĞĂƐĞĚ ƉůĂĐŝŶŐ ĂŶ ŝŶĐƌĞĂƐĞĚ ďƵƌĚĞŶ ŽŶ ŝƚǇ ƌĞǀĞŶƵĞ ƚŽ
ŵĂŝŶƚĂŝŶĞƐƐĞŶƚŝĂůĐŝƚǇƐĞƌǀŝĐĞƐ͘

&ŽƌďƵƐŝŶĞƐƐͲƚǇƉĞĂĐƚŝǀŝƚŝĞƐ͕ƚŚĞƵƐĞƌƉĂǇƐĂƌĞůĂƚĞĚĨĞĞĨŽƌĐŚĂƌŐĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞƐĞƌǀŝĐĞ͘dŚĞƌĞĂƌĞ
ŶŽ ŐŽǀĞƌŶŵĞŶƚĂů ƚĂǆĞƐ Žƌ ĨĞĞƐ ĨŽƌ ďƵƐŝŶĞƐƐͲƚǇƉĞ ĂĐƚŝǀŝƚŝĞƐ͘ dŚĞ ŝƚǇ ŽƵŶĐŝů ŚĂƐ ĂƉƉƌŽǀĞĚ ƐŵĂůů ƌĂƚĞ
ĂĚũƵƐƚŵĞŶƚƐŝŶϮϬϭϳ͕ϮϬϭϴ͕ĂŶĚϮϬϭϵƚŽŽĨĨƐĞƚƚŚĞƌŝƐĞŝŶŽƉĞƌĂƚŝŽŶĂůĐŽƐƚƐĂƐǁĞůůĂƐŵĞĞƚƚŚĞŚŝŐŚĞƌ
ƉƌŝĐĞƐĨŽƌƉƵƌĐŚĂƐĞĚƉŽǁĞƌĂŶĚǁŽƌŬĐŽŵƉůĞƚŝŶŐĂƌĞͲĚƌŝůůĂŶĚŝŵƉƌŽǀĞŵĞŶƚƚŽǁĞůůηϯĂůůŽǁŝŶŐĂŵŽƌĞ
ƐƵƐƚĂŝŶĂďůĞĨůŽǁŽĨǁĂƚĞƌŝŶƚŚĞƐƵŵŵĞƌŵŽŶƚŚƐƚŽŽƵƌĐŝƚŝǌĞŶƐĚƵƌŝŶŐŝƌƌŝŐĂƚŝŽŶƐĞĂƐŽŶ͘

dŚĞ ƐĂůĞƐ ƚĂǆ ƌĞǀĞŶƵĞ ƌĞĐĞŝǀĞĚ ďǇ ƚŚĞ ŝƚǇ ŽĨ ŚĞŶĞǇ ŝƐ ŚĞĂǀŝůǇ ƚŝĞĚ ƚŽ ůĂƌŐĞ ĐĂƉŝƚĂů ĂŶĚ ĚĞǀĞůŽƉŵĞŶƚ
ƉƌŽũĞĐƚƐďŽƚŚǁŝƚŚŝŶŽƵƌŝƚǇůŝŵŝƚƐĂŶĚŽŶƚŚĞĂƐƚĞƌŶtĂƐŚŝŶŐƚŽŶhŶŝǀĞƌƐŝƚǇĂŵƉƵƐ͘tĞĐŽŶƚŝŶƵĞƚŽ
ƐƵƉƉŽƌƚƚŚĞhŶŝǀĞƌƐŝƚǇŝŶƚŚĞŝƌĞĨĨŽƌƚƐĨŽƌďƌŝŶŐŝŶŐĐĂƉŝƚĂůŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚŚĞƵŶŝǀĞƌƐŝƚǇĐĂŵƉƵƐ͘^ĂůĞƐ
ƚĂǆǁĂƐůŽǁĞƌŝŶϮϬϮϬĚƵĞƚŽƚŚĞKs/ͲϭϵďƵƐŝŶĞƐƐĐůŽƐƵƌĞƐŝŶĂĚĚŝƚŝŽŶƚŽƚŚĞƐƚƵĚĞŶƚƐĨƌŽŵĂƐƚĞƌŶ
tĂƐŚŝŶŐƚŽŶhŶŝǀĞƌƐŝƚǇůĞĂǀŝŶŐƚŽǁŶƚŽĐŽŶƚŝŶƵĞƚŚĞŝƌƐƚƵĚŝĞƐƌĞŵŽƚĞůǇ͘

ŚĞŶĞǇĐŽŶƚŝŶƵĞƐƚŽƉƌŽŵŽƚĞƚŚĞĂĐƋƵŝƐŝƚŝŽŶŽĨƉƌŽƉĞƌƚǇĂǀĂŝůĂďůĞǁŝƚŚŝŶƚŚĞŚĞŶĞǇŽŵŵĞƌĐĞWĂƌŬĂŶĚ
ĞŶĐŽƵƌĂŐĞƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨďƵƐŝŶĞƐƐǁŝƚŚƚŚĞŝƚǇ͘dŚĞŽŵŵĞƌĐĞWĂƌŬĞŶũŽǇƐƵƚŝůŝƚŝĞƐƚŽƚŚĞĐƵƌďĂŶĚ
ŝƐƌĞĂĚǇƚŽĚĞǀĞůŽƉĨŽƌĨƵƚƵƌĞďƵƐŝŶĞƐƐŶĞĞĚƐ͘

Page 25

/dzK&,Ez͕t^,/E'dKE

dŚĞ ŝƚǇ ĐŽŶƚŝŶƵĞƐ ƚŽ ůŽŽŬ ĨŽƌ ĂŶĚ ĚĞǀĞůŽƉ ĂĚĚŝƚŝŽŶĂů ƌĞǀĞŶƵĞ ƐŽƵƌĐĞƐ ƚŽ ƉƌŽǀŝĚĞ ƚŚĞ ŽƵƚƐƚĂŶĚŝŶŐ
ŐŽǀĞƌŶŵĞŶƚĂůƐĞƌǀŝĐĞƐŽƵƌĐŝƚŝǌĞŶƐŚĂǀĞĐŽŵĞƚŽĞŶũŽǇ͘dŚĞŝƚǇŽĨŚĞŶĞǇƉůĂĐĞƐĂŚŝŐŚĞŵƉŚĂƐŝƐŽŶ
ŵĂŝŶƚĂŝŶŝŶŐĂŶĚĞŶƌŝĐŚŝŶŐĂŚŝŐŚƋƵĂůŝƚǇŽĨůŝĨĞĨŽƌŽƵƌĐŝƚŝǌĞŶƌǇ͘dŚĞŝƚǇŚĂƐƉůĂĐĞĚĂŚŝŐŚƉƌŝŽƌŝƚǇŽŶ
ƌĞƐƚŽƌŝŶŐ ŐŽǀĞƌŶŵĞŶƚĂů ƌĞƐĞƌǀĞƐ ƚŽ ƚŚĞ Ϯϱй ĚĞƐŝƌĞĚ ƌĞƐĞƌǀĞ ďĂůĂŶĐĞƐ ĂŶĚ ǁĂƐ ĂďůĞ ƚŽ ŵĂŝŶƚĂŝŶ ƚŚŽƐĞ
ƌĞƐĞƌǀĞƐŝŶƚŚĞŐĞŶĞƌĂůĨƵŶĚŝŶϮϬϮϬ͘

&ŝŶĂůůǇ͕ĂƚƚŚĞĐƌĞĂƚŝŽŶŽĨƚŚŝƐƌĞƉŽƌƚ͕ƚŚĞŝƚǇ͕ŝŶĐŽŵďŝŶĂƚŝŽŶǁŝƚŚ^ƉŽŬĂŶĞŽƵŶƚǇ͕^ƚĂƚĞŽĨtĂƐŚŝŶŐƚŽŶ͕
ĂŶĚƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͕ŝƐĐŽŶƚŝŶƵŝŶŐƚŽŵĂŶĂŐĞƚŚĞKs/ͲϭϵƉĂŶĚĞŵŝĐ͘/ŶĂĚĚŝƚŝŽŶƚŽŵĂŝŶƚĂŝŶŝŶŐĂŶ
ĞĨĨĞĐƚŝǀĞĂŶĚĐŽŶƚŝŶƵŽƵƐŐŽǀĞƌŶŵĞŶƚ͕ĞŶƐƵƌŝŶŐƚŚĞƐĂĨĞƚǇŽĨŽƵƌĐŝƚŝǌĞŶƐĂŶĚĞŵƉůŽǇĞĞƐ͕ƚŚĞŝƚǇŝƐŝŶĂ
ĐŽŶƚŝŶƵŽƵƐĂŶĂůǇƐŝƐŽĨŚŽǁƚŚŝƐƵŶĞǆƉĞĐƚĞĚĞǀĞŶƚǁŝůůĂĨĨĞĐƚŽƵƌŝƚǇĞĐŽŶŽŵŝĐĂůůǇ͘ZĞǀĞŶƵĞƐĂƌĞďĞŝŶŐ
ƌĞǀŝĞǁĞĚĂƐǁĞůůĂƐďƵĚŐĞƚĞĚĞǆƉĞŶƐĞƐĂŶĚƉƌŽũĞĐƚƐ͘dŚĞŝƚǇŵĂŝŶƚĂŝŶĞĚƚŚĞŶĞĞĚƚŽŬĞĞƉƌĞƐĞƌǀĞƐŝŶ
ƉůĂĐĞǁŚŝůĞŵĂŝŶƚĂŝŶŝŶŐĐŽƌĞƐĞƌǀŝĐĞƐĂŶĚƉƌŽŐƌĂŵƐ͘dŚĞDĂǇŽƌĚĞĐůĂƌĞĚĂŶĞŵĞƌŐĞŶĐǇĂŶĚƚŚĞŝƚǇǁŝůů
ĐŽŶƚŝŶƵĞƚŽƐĞĞŬďŽƚŚƐƚĂƚĞĂŶĚĨĞĚĞƌĂůĨƵŶĚŝŶŐ͕ŝŶĂĚĚŝƚŝŽŶƚŽƚŚĞZ^ĨƵŶĚƐĂůƌĞĂĚǇƌĞĐĞŝǀĞĚ͕ƚŽŽĨĨƐĞƚ
ƵŶĨŽƌĞƐĞĞŶĐŽƐƚƐĂŶĚůŽƐƐŽĨƌĞǀĞŶƵĞ͘

ZYh^d^&KZ/E&KZDd/KE

dŚŝƐĨŝŶĂŶĐŝĂůƌĞƉŽƌƚŝƐĚĞƐŝŐŶĞĚƚŽƉƌŽǀŝĚĞĂŐĞŶĞƌĂůŽǀĞƌǀŝĞǁŽĨƚŚĞŝƚǇŽĨŚĞŶĞǇĨŽƌĂůůƚŚŽƐĞǁŝƚŚĂŶ
ŝŶƚĞƌĞƐƚ ŝŶ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚ͛Ɛ ĨŝŶĂŶĐĞƐ͘ YƵĞƐƚŝŽŶƐ ĐŽŶĐĞƌŶŝŶŐ ĂŶǇ ŽĨ ƚŚĞ ŝŶĨŽƌŵĂƚŝŽŶ ƉƌŽǀŝĚĞĚ ŝŶ ƚŚŝƐ
ƌĞƉŽƌƚŽƌƌĞƋƵĞƐƚƐĨŽƌĂĚĚŝƚŝŽŶĂůŝŶĨŽƌŵĂƚŝŽŶƐŚŽƵůĚďĞĚŝƌĞĐƚĞĚƚŽ͗

ŝŶĚǇEŝĞŵĞŝĞƌ͕&ŝŶĂŶĐĞŝƌĞĐƚŽƌ
ŝƚǇŽĨŚĞŶĞǇ͕tĂƐŚŝŶŐƚŽŶ
ϲϬϵ^ĞĐŽŶĚ^ƚƌĞĞƚ
ŚĞŶĞǇ͕tϵϵϬϬϰ
ĐŶŝĞŵĞŝĞƌΛĐŝƚǇŽĨĐŚĞŶĞǇ͘ŽƌŐ
;ϱϬϵͿϰϵϴͲϵϮϭϱ

Page 26
/dzK&,Ez͕t^,/E'dKE
^ƚĂƚĞŵĞŶƚŽĨEĞƚWŽƐŝƚŝŽŶ
ĞĐĞŵďĞƌϯϭ͕ϮϬϮϬ
'ŽǀĞƌŶŵĞŶƚĂů ƵƐŝŶĞƐƐͲdǇƉĞ ϮϬϮϬ

ĐƚŝǀŝƚŝĞƐ ĐƚŝǀŝƚŝĞƐ dŽƚĂů
ƐƐĞƚƐ
ĂƐŚĂŶĚĂƐŚƋƵŝǀĂůĞŶƚƐ Ψϳ͕ϴϱϭ͕ϴϬϴ Ψϲ͕ϵϮϮ͕ϲϯϰ Ψϭϰ͕ϳϳϰ͕ϰϰϮ
/ŶǀĞƐƚŵĞŶƚƐ Ͳ
ZĞƐƚƌŝĐƚĞĚƐƐĞƚƐ Ͳ ϲϱϴ͕ϱϱϲ ϲϱϴ͕ϱϱϲ
ZĞĐĞŝǀĂďůĞƐ͗
dĂǆĞƐ;hƚŝůŝƚǇĂŶĚWƌŽƉĞƌƚǇͿ ϭ͕ϬϮϳ͕ϯϳϲ ϭ͕ϲϲϯ͕ϬϬϲ Ϯ͕ϲϵϬ͕ϯϴϮ
KƚŚĞƌ ϱϵϱ͕ϰϭϴ Ϯϭ͕ϳϮϵ ϲϭϳ͕ϭϰϳ
/ŶƚĞƌŶĂůĂůĂŶĐĞƐ ;ϭϳϰ͕ϱϱϰͿ ϭϳϰ͕ϱϱϰ Ͳ
ƵĞĨƌŽŵKƚŚĞƌ'ŽǀĞƌŶŵĞŶƚƐͬ&ƵŶĚƐ ϴϴ͕ϲϬϯ Ϯϵϵ͕Ϯϱϯ ϯϴϳ͕ϴϱϲ
DĂƚĞƌŝĂůƐĂŶĚ^ƵƉƉůŝĞƐ/ŶǀĞŶƚŽƌǇ ϲ͕ϴϮϱ ϳϯϯ͕ϭϮϱ ϳϯϵ͕ϵϱϬ
WƌĞƉĂŝĚǆƉĞŶƐĞƐ ϰϮ͕ϬϴϮ Ϯϰ͕ϳϴϵ ϲϲ͕ϴϳϭ
>ĂŶĚ ϭ͕ϮϬϲ͕ϱϳϬ ϵϯϯ͕Ϭϱϴ Ϯ͕ϭϯϵ͕ϲϮϴ
ĞƉƌĞĐŝĂďůĞĂƉŝƚĂůƐƐĞƚƐ͕EĞƚ ϭϲ͕ϯϳϮ͕ϴϮϯ Ϯϯ͕ϱϵϭ͕ϵϲϬ ϯϵ͕ϵϲϰ͕ϳϴϯ
ŽŶƐƚƌƵĐƚŝŽŶŝŶWƌŽŐƌĞƐƐ ϭϭ͕ϰϳϯ ϭϵϯ ϭϭ͕ϲϲϲ
EĞƚWĞŶƐŝŽŶƐƐĞƚ ϭ͕ϬϵϬ͕ϲϲϮ ϲϲϴ͕ϰϳϭ ϭ͕ϳϱϵ͕ϭϯϯ
dŽƚĂůƐƐĞƚƐ Ϯϴ͕ϭϭϵ͕Ϭϴϲ ϯϱ͕ϲϵϭ͕ϯϮϴ ϲϯ͕ϴϭϬ͕ϰϭϰ
ĞĨĞƌƌĞĚKƵƚĨůŽǁƐŽĨZĞƐŽƵƌĐĞƐ
ZĞůĂƚĞĚƚŽKW ϯϲ͕ϭϲϲ Ͳ ϯϲ͕ϭϲϲ
ZĞůĂƚĞĚƚŽƐƐĞƚZĞƚŝƌĞŵĞŶƚKďůŝŐĂƚŝŽŶƐ ϯϬ͕ϬϬϬ ϰϬϬ͕ϬϬϬ ϰϯϬ͕ϬϬϬ
ZĞůĂƚĞĚƚŽWĞŶƐŝŽŶƐ ϲϱϬ͕ϱϭϬ ϰϬϭ͕ϯϴϬ ϭ͕Ϭϱϭ͕ϴϵϬ
dŽƚĂůĞĨĞƌƌĞĚKƵƚĨůŽǁƐŽĨZĞƐŽƵƌĐĞƐ ϳϭϲ͕ϲϳϲ ϴϬϭ͕ϯϴϬ ϭ͕ϱϭϴ͕Ϭϱϲ
>ŝĂďŝůŝƚŝĞƐ
ĐĐŽƵŶƚƐWĂǇĂďůĞ ϭϱϲ͕Ϯϭϵ ϭ͕ϬϵϬ͕ϳϲϱ ϭ͕Ϯϰϲ͕ϵϴϰ
ZĞƚĂŝŶĂŐĞWĂǇĂďůĞ Ϯϯ͕ϳϲϳ ϭϱ͕ϰϳϴ ϯϵ͕Ϯϰϱ
hŶĞĂƌŶĞĚZĞǀĞŶƵĞ ϵϱ͕ϯϭϮ ϰϮ͕ϯϲϬ ϭϯϳ͕ϲϳϮ
ƵĞƚŽKƚŚĞƌ&ƵŶĚƐ ϭϬϰ͕ϬϯϬ ϭϬϰ͕ϬϯϬ
/ŶƚĞƌĞƐƚWĂǇĂďůĞͲƵƌƌĞŶƚĞďƚ ϳϱϳ ϳϱϳ
ĂƉŝƚĂů>ĞĂƐĞWĂǇĂďůĞ ϮϬ͕ϵϳϳ ϮϬ͕ϵϳϳ
ǆƚĞƌŶĂůĞďƚWĂǇĂďůĞͲ;ƵĞŝŶŽŶĞǇĞĂƌͿ ϰϬ͕ϳϳϬ ϲϰϮ͕ϮϲϮ ϲϴϯ͕ϬϯϮ
tĂŐĞƐWĂǇĂďůĞ ϭϲ͕ϰϱϴ ϭϲ͕ϰϱϴ
ŽŵƉĞŶƐĂƚĞĚďƐĞŶĐĞƐͲƵƌƌĞŶƚ ϯϳϰ͕ϵϮϭ ϭϳϮ͕ϰϰϬ ϱϰϳ͕ϯϲϭ
KƚŚĞƌWŽƐƚŵƉůŽǇŵĞŶƚ>ŝĂďŝůŝƚǇͲƵƌƌĞŶƚ ϭϰϬ͕ϬϬϬ Ͳ ϭϰϬ͕ϬϬϬ
>ŽŶŐͲdĞƌŵ>ŝĂďŝůŝƚŝĞƐ͗
ƐƐĞƚZĞƚŝƌĞŵĞŶƚKďůŝŐĂƚŝŽŶƐ ϯϬ͕ϬϬϬ ϰϬϬ͕ϬϬϬ ϰϯϬ͕ϬϬϬ
>ŽŶŐdĞƌŵĞďƚ ϰϵϮ͕ϲϵϬ ϰ͕ϯϵϭ͕ϳϱϲ ϰ͕ϴϴϰ͕ϰϰϲ
ĂƉŝƚĂů>ĞĂƐĞ ϲϳ͕ϱϲϰ ϲϳ͕ϱϲϰ
ŽŵƉĞŶƐĂƚĞĚďƐĞŶĐĞƐWĂǇĂďůĞ ϵϬϵ͕ϵϬϵ Ϯϲϭ͕ϵϴϭ ϭ͕ϭϳϭ͕ϴϵϬ
KƚŚĞƌWŽƐƚŵƉůŽǇŵĞŶƚ>ŝĂďŝůŝƚǇ ϯ͕ϭϵϮ͕ϯϰϲ Ͳ ϯ͕ϭϵϮ͕ϯϰϲ
EĞƚWĞŶƐŝŽŶ>ŝĂďŝůŝƚǇ ϭ͕ϭϬϯ͕ϲϱϵ ϲϳϲ͕ϰϯϲ ϭ͕ϳϴϬ͕Ϭϵϱ
ĞƉŽƐŝƚƐ ϯ͕ϬϬϬ ϱϭϮ͕ϰϮϬ ϱϭϱ͕ϰϮϬ
dŽƚĂů>ŝĂďŝůŝƚŝĞƐ ϲ͕ϳϱϱ͕ϭϲϰ ϴ͕ϮϮϯ͕ϭϭϯ ϭϰ͕ϵϳϴ͕Ϯϳϳ
ĞĨĞƌƌĞĚ/ŶĨůŽǁƐŽĨZĞƐŽƵƌĐĞƐ
ĞĨĞƌƌĞĚ/ŶĨůŽǁƐZĞůĂƚĞĚƚŽWĞŶƐŝŽŶƐ ϲϱϳ͕ϱϳϱ ϰϬϲ͕ϱϱϱ ϭ͕Ϭϲϰ͕ϭϯϬ
dŽƚĂůĞĨĞƌƌĞĚŝŶĨůŽǁƐŽĨZĞƐŽƵƌĐĞƐ ϲϱϳ͕ϱϳϱ ϰϬϲ͕ϱϱϱ ϭ͕Ϭϲϰ͕ϭϯϬ
EĞƚWŽƐŝƚŝŽŶ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ϭϳ͕Ϭϱϳ͕ϰϬϲ ϭϵ͕ϰϵϭ͕ϭϵϯ ϯϲ͕ϱϰϴ͕ϱϵϵ
ZĞƐƚƌŝĐƚĞĚĨŽƌ͗ Ͳ Ͳ
/ŶǀĞŶƚŽƌŝĞƐĂŶĚƌĞƐƚƌŝĐƚĞĚƉƵƌƉŽƐĞƐ ϯ͕Ϯϰϭ͕ϰϯϰ ϯ͕Ϯϰϭ͕ϰϯϰ
EĞƚWĞŶƐŝŽŶƐƐĞƚ ϲϵϵ͕ϱϲϰ ϲϲϴ͕ϰϳϭ ϭ͕ϯϲϴ͕Ϭϯϱ
Ğďƚ^ĞƌǀŝĐĞ Ͳ ϭϰϲ͕ϭϯϲ ϭϰϲ͕ϭϯϲ
hŶƌĞƐƚƌŝĐƚĞĚ;ĚĞĨŝĐŝƚͿ ϰϮϰ͕ϲϭϵ ϳ͕ϱϱϳ͕ϮϰϬ ϳ͕ϵϴϭ͕ϴϱϵ
dŽƚĂůEĞƚWŽƐŝƚŝŽŶ ΨϮϭ͕ϰϮϯ͕ϬϮϯ ΨϮϳ͕ϴϲϯ͕ϬϰϬ Ψϰϵ͕Ϯϴϲ͕Ϭϲϯ
dŚĞEŽƚĞƐƚŽƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐĂƌĞĂŶ/ŶƚĞŐƌĂůWĂƌƚŽĨƚŚŝƐ^ƚĂƚĞŵĞŶƚ
Page 27
CITY OF CHENEY, WASHINGTON
Statement of Activities
For the Fiscal Year Ended December 31, 2020
Net (Expenses) Revenue and

Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-Type Total
Expenses Services Contributions Contributions Activities Activities
Governmental Activities:
General Government 940,043 35,499 315,842 - (588,702) (588,702)
Judicial 290,989 172,389 23,678 - (94,922) (94,922)
Public Safety 6,121,802 822,843 357,397 - (4,941,562) (4,941,562)
Transportation 1,412,899 121,257 3,090 1,170,883 (117,669) (117,669)
Economic Environment 496,747 130,040 - - (366,707) (366,707)
Mental and Physical Health 3,557 - - - (3,557) (3,557)
Culture and Recreation 960,152 206,032 27,111 - (727,009) (727,009)
Interest 33,177 - - - (33,177) (33,177)
- - -
Total Governmental Activities 10,259,366 1,488,060 727,118 1,170,883 (6,873,305) - (6,873,305)
-
Business-Type Activities: -
Light 9,330,584 9,229,436 309,770 110,191 318,813 318,813
Water 1,598,380 1,853,575 36,100 133,790 425,085 425,085
Solid Waste 1,509,104 1,522,996 23,686 - 37,578 37,578
Sewer 3,031,748 2,977,859 27,330 755,544 728,985 728,985
-
Total Business-Type Activities 15,469,816 15,583,866 396,886 999,525 - 1,510,461 1,510,461
Total Government 25,729,182 17,071,926 1,124,004 2,170,408 (6,873,305) 1,510,461 (5,362,844)
Property Taxes 2,532,844 2,532,844

Retail Sales & Use Tax 2,276,130 2,276,130
Utility Taxes 2,254,017 2,254,017
Excise Taxes 842,123 842,123
Settlements/Judgements - -
Interest 47,469 69,042 116,511
Total General Revenues 7,952,583 69,042 7,952,583
Change in Net Position 1,079,278 1,579,503 2,658,781
Net Position - Beginning of Year 20,343,745 26,283,537 46,627,282
Net Position - End of Year $ 21,423,023 $ 27,863,040 $ 49,286,063
Page 28
The Notes to the Financial Statements are an Integral Part of this Statement
`

Balance Sheet
Governmental Funds
December 31, 2020
Major Funds Other Total

General Parks & Governmental Governmental
Recreation Funds Funds
Assets and Outflows of Resources

Cash and Cash Equivalents $ 3,318,992 $ 1,062,764 $ 3,219,019 $ 7,600,775
Receivables
Taxes - Property/Utility 690,926 76,334 260,116 1,027,376
Contracts/Lease 419,043 - 419,043
Municipal Court 166,467 - - 166,467
Interfund - -
Other 2,834 3,905 3,169 9,908
Inventories - 5,924 5,924
Prepayments 39,477 72 2,533 42,082
Due from Other Governments 8,158 36 77,734 85,928
Total Assets 4,645,897 1,143,111 3,568,495 9,357,503
Liabilities and Fund Balances

Liabilities:
Accounts Payable 84,536 39,168 29,201 152,905
Due to Other Funds 104,030 104,030
Retainage Payable - - 23,767 23,767
Other Payables/Current Liabilities - - 5,000 5,000
Unearned Revenue 214,149 11,779 - 225,928
Deposits 3,000 - - 3,000
Total Liabilities 405,715 50,947 57,968 514,630
Deferred Inflows of Resources

Unavailable Tax 84,100 - 13,515 97,615
Total Deferred inflows of Resources 84,100 - 13,515 97,615
Fund Balances
Nonspendable - - 5,924 5,924
Restricted - 519,548 2,301,688 2,821,236
Committed - 19,415 400,783 420,198
Assigned 183,548 553,201 809,382 1,546,131
Unassigned 3,972,534 - (20,765) 3,951,769
Total Fund Balance 4,156,082 1,092,164 3,497,012 8,745,258
Total Liabilities and Fund Balance $ 4,645,897 $ 1,143,111 $ 3,568,495 $ 9,357,503
Page 29
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities
December 31, 2020
Amounts reported for governmental activities in the statement of net position are different because:
Total Governmental Fund Balances: $ 8,745,258
Capital Assets used in governmental activities are not

financial resources and therefore are not reported in the
funds. These assets consist of:
Land 1,206,570
Buildings and structures 4,812,411
Improvements 1,765
Infrastructure 35,355,821
Machinery and Equipment 5,011,217
CIP 11,473
Less: Accumulated Depreciation (29,028,761) 17,370,496
Deferred Outflows related to Pension and OPEB - not presented in 686,676

fund financial statements
Municipal Court and Property Tax receivables are reported at the fund 233,231
level with current year deferred liabilities. The government wide statement
does not report the current year liability.
Net Pension Assets are reported in the government-wide statements 1,090,662

of Net Position, not in the individual fund statements.
Long-term liabilities, including compensated absences payable are not due and (1,284,830)
payable in the current period and, therefore, are not reported in the
governmental funds.
Long-term liabilities, including other post employment benefits payable (3,332,346)

are not due and payable in the current period and therefore, are
not reported in the governmental funds.
Long-Term liabilities, including capital lease payable and LOCAL , are not
due and payable in the current period and therefore, are not reported in (622,001)
the governmental funds.
Long-Term liabilities, including net pension liability, are not due (1,103,659)
and payable in the current period and therefore, are not reported in
the governmental funds.
Deferred Inflows related to Pension - not presented in (657,575)

fund financial statements
Internal service funds are used by management to charge the costs of 297,111
certain activities to individual funds. Total assets and liabilities of
the internal service funds are included in governmental activities in
the statement of net position.
Net Position of Governmental Activities $ 21,423,023
Page 30
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
Major Funds Other Total

General Parks & Governmental Governmental
Recreation Funds Funds
Revenues
Taxes $ 5,267,674 $ 521,184 $ 1,518,897 $ 7,307,755
Licenses and Permits 114,527 - 25,815 140,342
Intergovernmental 839,835 10,754 1,516,377 2,366,966
Charges for Services 963,850 206,032 40,403 1,210,285
Fines and Forfeits 103,458 - - 103,458
Miscellaneous 47,151 23,179 18,827 89,157
Total Revenues 7,336,495 761,149 3,120,319 11,217,963
Expenditures
General Government 1,176,976 - 28,681 1,205,657
Public Safety 4,934,279 - 562,480 5,496,759
Economic Environment 509,634 - 6,475 516,109
Mental and Physical Health 3,557 - - 3,557
Culture and Recreation 1,159 792,626 - 793,785
Transportation - - 443,238 443,238
Debt Service: Principal 50,249 - 43,463 93,712
Debt Service: Interest 28,160 - 1,454 29,614
Street Construction - - 1,437,392 1,437,392
Purchase of Capital Assets 270,939 38,127 138,749 447,815
Total Expenditures 6,974,953 830,753 2,661,932 10,467,638
Excess of Revenues over Expenditures 361,542 (69,604) 458,387 750,325
Other Financing Sources (Uses)

Increase (decrease) fund equity - - (558) (558)
Proceeds from Sale of Capital Assets - - - -
Transfers In - 125,000 125,000
Transfers Out (125,000) (125,000)
Lease Proceeds 108,790 - - 108,790
Total Other Financing Sources (Uses) (16,210) - 124,442 108,232
Net Change in Fund Balances 345,332 (69,604) 582,829 858,557
Fund Balances - Beginning of Year 3,810,750 1,161,768 2,914,183 7,886,701
Total Fund Balance End of Year $ 4,156,082 $ 1,092,164 $ 3,497,012 $ 8,745,258
Page 31
Reconciliation of Statement of Revenues, Expenditures and Changes
In Fund Balances of Governmental Funds to the Statement of Activities
Net Change in Fund Balance - Total Governmental Funds $ 858,557
Amounts reported for Governmental activities in the statement of

activities are different because:
Internal Service Funds are not included in the Statement of 26,539

Revenues, Expenditures and Changes in Fund Balances. Those
Internal Service Funds are included in the Governmental Activities
section of the Statement of Activities because they directly benefit
governmental funds. This is the net change in position for the Internal
Service Funds
Depreciation Expense, and Wages Payable for Governmental Funds (1,774,728)

are not included in the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balance. They are included in the
Governmental Funds on the Statement of Activities.
Other Post Employment Benefits Payable for Governmental Funds (274,085)

are not included in the Governmental Funds Statement
of Revenues, Expenditures, and Changes in Fund Balance. The
diffference of the OPEB Liability and the actual amount paid on the
"pay as you go basis" is included in the Governmental Funds on the
Statement of Activities.
Debt Service (lease payment) made on the new Capital Lease 93,712
is removed from governmental expenditures and a reduction
of the Long-Term Liability is made.
Premium Amoritization of LOCAL Fire Truck 11,540
Removal of other Financing Sources (108,790)
Capital Items are included on the Governmental Funds 1,885,810

Statement of Revenues, Expenditures, and Changes in Fund
Balance. These expenses are moved to capital assets on the
Statement of Net Position and are not shown on the Statement of
Activities. Annual Depreciation is given in the Statement of Activities
to show assets as they are used.
Governmental fund statements report the current year uncollected 4,707

revenue. The government-wide statements include the past two years
as part of the reported revenue. This amount is the difference between
the total court receivable and deferred revenue plus the property
tax unavailable revenue on the Governmental Fund Statement.
Pension Expense and LEOFF 2 state contribution for Pensions are not 356,016
included in the Governmental funds but included in the Statement of
Activities
Change in Net Position of Governmental Activities $ 1,079,278
Page 32
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual
For the Year Ended December 31, 2020
Budgeted Amounts Variance with

Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Taxes $ 5,330,600 $ 5,330,600 $ 5,267,674 $ (62,926)
Licenses and Permits 250,400 250,400 114,527 (135,873)
Intergovernmental 325,500 329,200 839,835 510,635
Charges for Services 2,455,900 2,455,900 963,850 (1,492,050)
Fines and Forfeits 150,500 150,500 103,458 (47,042)
Miscellaneous 477,100 482,600 47,151 (435,449)
Total Revenues 8,990,000 8,999,200 7,336,495 (1,662,705)
Expenditures
General Government 2,710,600 2,859,300 1,176,976 1,682,324
Public Safety 4,944,100 4,982,300 4,934,279 48,021
Physical Environment 388,300 388,300 - 388,300
Economic Environment 546,800 546,800 509,634 37,166
Mental and Physical Health 3,400 3,400 3,557 (157)
Culture and Recreation 3,100 3,100 1,159 1,941
Capital 220,000 263,400 270,939 (7,539)
Debt Service: Principal 53,000 53,000 50,249 2,751
Debt Service: Interest 27,300 27,300 28,160 (860)
-
Total Expenditures 8,896,600 9,126,900 6,974,953 2,151,947
Excess of Revenues over Expenditures 93,400 (127,700) 361,542 489,242

Lease - Fire Packs - - 108,790 108,790
Operating Transfers In/Out (125,000) (125,000) (125,000) -
-
Total Other Financing Sources (Uses) (125,000) (125,000) (16,210) 108,790
Net Change in Fund Balances (31,600) (252,700) 345,332 598,032

-
Fund Balances - Beginning of Year 200,000 352,700 3,810,750 3,458,050
Total Fund Balance - End of Year $ 168,400 $ 100,000 $ 4,156,082 $ 4,056,082
Page 33
Parks and Recreation Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget to Actual
Budgeted Amounts Variance with

Actual Final Budget -
Original Final Amounts Positive (Negative)
Revenues
Taxes $ 570,200 $ 570,200 $ 521,184 $ (49,016)
Intergovernmental 13,500 13,500 10,754 (2,746)
Charges for Services 605,700 605,700 206,032 (399,668)
Miscellaneous 81,000 81,000 23,179 (57,821)
Total Revenues 1,270,400 1,270,400 761,149 (509,251)
Expenditures
Culture and Recreation 1,252,400 1,252,400 792,626 459,774
Capital 660,000 660,000 38,127 621,873
-
Total Expenditures 1,912,400 1,912,400 830,753 1,081,647
Excess of Revenues over Expenditures (642,000) (642,000) (69,604) 572,396

Insurance Recoveries - - - -
Operating Transfer In/Out - - - -
Increases (Decreases) in Fund Balance - -
-
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balances (642,000) (642,000) (69,604) 572,396

-
Fund Balances - Beginning of Year 642,000 642,000 1,161,768 519,768
Total Fund Balance - End of Year $ - $ - $ 1,092,164 $ 1,092,164
Page 34
/dzK&,Ez͕t^,/E'dKE
^ƚĂƚĞŵĞŶƚŽĨEĞƚWŽƐŝƚŝŽŶ
WƌŽƉƌŝĞƚĂƌǇ&ƵŶĚƐ
ĞĐĞŵďĞƌϯϭ͕ϮϬϮϬ
dŽƚĂů /ŶƚĞƌŶĂů
^ŽůŝĚ ŶƚĞƌƉƌŝƐĞ ^ĞƌǀŝĐĞ
>ŝŐŚƚ tĂƚĞƌ tĂƐƚĞ ^ĞǁĞƌ &ƵŶĚƐ &ƵŶĚƐ
ƐƐĞƚƐ
ĂƐŚĂŶĚĂƐŚƋƵŝǀĂůĞŶƚƐ Ψϰ͕ϱϮϱ͕ϳϳϲ ΨϮϬϬ͕ϱϲϱ Ψϴϱϴ͕ϭϵϲ Ψϭ͕ϯϯϴ͕Ϭϵϳ Ψϲ͕ϵϮϮ͕ϲϯϰ Ψ Ϯϱϭ͕Ϭϯϯ
ZĞĐĞŝǀĂďůĞƐ
hƚŝůŝƚǇ ϭ͕Ϭϲϳ͕ϴϲϯ ϭϰϯ͕ϰϭϳ ϭϰϵ͕ϵϮϮ ϯϬϭ͕ϴϬϰ ϭ͕ϲϲϯ͕ϬϬϲ Ͳ
KƚŚĞƌ Ͳ ϭϭ͕ϳϱϵ Ͳ ϵ͕ϵϳϬ
Ϯϭ͕ϳϮϵ Ϯ͕ϲϳϱ
'ŽǀĞƌŶŵĞŶƚĂůhŶŝƚƐ ϭϬϰ͕ϬϯϬ ϳϮ͕ϳϱϬ Ϯ͕ϰϮϲ ϭϮϬ͕Ϭϰϳ Ϯϵϵ͕Ϯϱϯ Ͳ
/ŶƚĞƌĨƵŶĚůŽĂŶ ϱϰϭ͕Ϯϰϲ Ͳ Ͳ ϰϬϴ͕Ϯϵϴ ϵϰϵ͕ϱϰϰ Ͳ
/ŶǀĞŶƚŽƌŝĞƐ ϰϰϰ͕ϴϲϱ ϭϯϳ͕ϵϵϰ Ͳ ϭϱϬ͕Ϯϲϲ ϳϯϯ͕ϭϮϱ ϵϬϭ
WƌĞƉĂŝĚǆƉĞŶƐĞƐ ϭϭ͕ϭϵϬ ϰ͕ϮϴϮ ϰ͕ϮϴϮ ϱ͕Ϭϯϱ
Ϯϰ͕ϳϴϵ Ͳ
dŽƚĂůƵƌƌĞŶƚƐƐĞƚƐ ϲ͕ϲϵϰ͕ϵϳϬ ϱϳϬ͕ϳϲϳ ϭ͕Ϭϭϰ͕ϴϮϲ Ϯ͕ϯϯϯ͕ϱϭϳ ϭϬ͕ϲϭϰ͕ϬϴϬ Ϯϱϰ͕ϲϬϵ

EŽŶĐƵƌƌĞŶƚƐƐĞƚƐ
ZĞƐƚƌŝĐƚĞĚĐĂƐŚ͕ĐĂƐŚĞƋƵŝǀ͕Θ/ŶǀĞƐƚ
Ğďƚ^ĞƌǀŝĐĞŽŶǀĞŶĂŶƚ Ͳ Ͳ ϭϰϲ͕ϭϯϲ ϭϰϲ͕ϭϯϲ Ͳ
ƵƐƚŽĚŝĂů ϱϭϭ͕ϴϮϬ Ͳ ϲϬϬ Ͳ ϱϭϮ͕ϰϮϬ Ͳ
dŽƚĂůZĞƐƚƌŝĐƚĞĚƐƐĞƚƐ ϱϭϭ͕ϴϮϬ Ͳ ϲϬϬ ϭϰϲ͕ϭϯϲ ϲϱϴ͕ϱϱϲ Ͳ
EĞƚWĞŶƐŝŽŶƐƐĞƚ ϯϬϬ͕ϴϭϮ ϴϲ͕ϵϬϭ ϴϲ͕ϵϬϭ ϭϵϯ͕ϴϱϳ ϲϲϴ͕ϰϳϭ Ͳ
ĂƉŝƚĂůƐƐĞƚƐ
>ĂŶĚ ϭϳϱ͕ϱϯϰ ϮϮ͕ϯϴϲ Ͳ ϳϯϱ͕ϭϯϴ ϵϯϯ͕Ϭϱϴ Ͳ
ƵŝůĚŝŶŐĂŶĚ^ƚƌƵĐƚƵƌĞƐ ϰ͕Ϯϲϯ͕ϰϱϳ ϰ͕ϯϱϯ͕ϬϱϬ ϳϭϱ͕ϭϲϴ ϭϯ͕ϴϲϭ͕ϱϴϱ Ϯϯ͕ϭϵϯ͕ϮϲϬ Ͳ
KƚŚĞƌ/ŵƉƌŽǀĞŵĞŶƚƐ Ϯϯϵ͕Ϭϯϲ ϯϲ͕ϱϯϱ ϭϵϰ͕ϯϮϰ ϭ͕ϵϮϲ͕ϳϱϬ Ϯ͕ϯϵϲ͕ϲϰϱ Ϯ͕ϴϯϯ
DĂĐŚŝŶĞƌǇĂŶĚƋƵŝƉŵĞŶƚ Ϯ͕ϱϴϬ͕ϬϭϬ ϱϭϮ͕ϱϭϭ ϭ͕ϴϬϭ͕ϰϴϭ ϯ͕ϴϮϮ͕ϱϭϰ ϴ͕ϳϭϲ͕ϱϭϲ ϴϯϮ͕Ϯϲϯ

/ŶĨƌĂƐƚƌƵĐƚƵƌĞ ϭϭ͕Ϭϰϳ͕ϲϳϮ ϭϬ͕ϮϮϭ͕ϮϮϵ Ͳ ϭϬ͕ϭϴϯ͕ϴϬϲ ϯϭ͕ϰϱϮ͕ϳϬϳ Ͳ
t/W ϭϵϯ Ͳ Ͳ Ͳ ϭϵϯ Ͳ
>ĞƐƐ͗ĐĐƵŵƵůĂƚĞĚĞƉƌ ;ϭϮ͕ϯϬϵ͕ϴϬϳͿ ;ϴ͕ϱϲϰ͕ϬϭϮͿ ;ϭ͕ϴϬϵ͕ϴϮϯͿ ;ϭϵ͕ϰϴϯ͕ϱϮϲͿ ;ϰϮ͕ϭϲϳ͕ϭϲϴͿ ;ϲϭϰ͕ϳϮϲͿ
dŽƚĂůĂƉŝƚĂůƐƐĞƚƐ
;ŶĞƚŽĨĂĐĐƵŵƵůĂƚĞĚĚĞƉƌͿ ϱ͕ϵϵϲ͕Ϭϵϱ ϲ͕ϱϴϭ͕ϲϵϵ ϵϬϭ͕ϭϱϬ ϭϭ͕Ϭϰϲ͕Ϯϲϳ Ϯϰ͕ϱϮϱ͕Ϯϭϭ ϮϮϬ͕ϯϳϬ

dŽƚĂůEŽŶĐƵƌƌĞŶƚƐƐĞƚƐ ϲ͕ϴϬϴ͕ϳϮϳ ϲ͕ϲϲϴ͕ϲϬϬ ϵϴϴ͕ϲϱϭ ϭϭ͕ϯϴϲ͕ϮϲϬ Ϯϱ͕ϴϱϮ͕Ϯϯϴ ϮϮϬ͕ϯϳϬ

dŽƚĂůƐƐĞƚƐ ϭϯ͕ϱϬϯ͕ϲϵϳ ϳ͕Ϯϯϵ͕ϯϲϳ Ϯ͕ϬϬϯ͕ϰϳϳ ϭϯ͕ϳϭϵ͕ϳϳϳ ϯϲ͕ϰϲϲ͕ϯϭϴ ϰϳϰ͕ϵϳϵ

ĞĨĞƌƌĞĚKƵƚĨůŽǁƐ
ZĞůĂƚĞĚƚŽƐƐĞƚZĞƚŝƌĞŵĞŶƚKďůŝŐĂƚŝŽŶƐ Ͳ ϰϬϬ͕ϬϬϬ Ͳ Ͳ ϰϬϬ͕ϬϬϬ
ZĞůĂƚĞĚƚŽWĞŶƐŝŽŶƐ ϭϴϬ͕ϲϮϭ ϱϮ͕ϭϳϵ ϱϮ͕ϭϳϵ ϭϭϲ͕ϰϬϭ ϰϬϭ͕ϯϴϬ
ĞĨĞƌƌĞĚKƵƚĨůŽǁZĞůĂƚĞĚƚŽWĞŶƐŝŽŶƐ ϭϴϬ͕ϲϮϭ ϰϱϮ͕ϭϳϵ ϱϮ͕ϭϳϵ ϭϭϲ͕ϰϬϭ ϴϬϭ͕ϯϴϬ Ͳ
>ŝĂďŝůŝƚŝĞƐ
ƵƌƌĞŶƚ>ŝĂďŝůŝƚŝĞƐ
ĐĐŽƵŶƚƐWĂǇĂďůĞ ϲϲϬ͕ϱϱϯ ϴϵ͕ϲϬϯ ϵϴ͕ϰϳϲ ϮϰϮ͕ϭϯϯ ϭ͕ϬϵϬ͕ϳϲϱ ϯ͕ϯϭϰ
ZĞƚĂŝŶĂŐĞWĂǇĂďůĞ ϲ͕ϰϰϭ ϵ͕Ϭϯϳ Ͳ Ͳ ϭϱ͕ϰϳϴ Ͳ
>ŽĂŶƐWĂǇĂďůĞ͗^ŚŽƌƚdĞƌŵ
/ŶƚĞƌĨƵŶĚ;ĚƵĞŝŶϮϬϮϬͿ Ͳ ϴϲ͕ϭϭϬ Ͳ Ͳ ϴϲ͕ϭϭϬ Ϯϯ͕ϭϲϭ
ǆƚĞƌŶĂů;ĚƵĞŝŶϮϬϮϬͿ Ͳ Ͳ Ͳ ϲϰϮ͕ϮϲϮ ϲϰϮ͕ϮϲϮ Ͳ
ĐĐƌƵĞĚ/ŶƚĞƌĞƐƚWĂǇĂďůĞ ϳϱϳ ϳϱϳ
hŶĞĂƌŶĞĚZĞǀĞŶƵĞ ϰϮ͕ϯϲϬ Ͳ Ͳ Ͳ ϰϮ͕ϯϲϬ Ͳ
tĂŐĞƐWĂǇĂďůĞ ϭϲ͕ϰϱϴ Ͳ ϭϲ͕ϰϱϴ
ŽŵƉĞŶƐĂƚĞĚďƐĞŶĐĞƐ͗^ŚŽƌƚƚĞƌŵ ϴϭ͕Ϭϲϴ Ϯϯ͕ϱϴϬ ϭϱ͕ϵϴϵ ϱϭ͕ϴϬϯ
ϭϳϮ͕ϰϰϬ Ͳ
dŽƚĂůƵƌƌĞŶƚ>ŝĂďŝůŝƚŝĞƐ ϴϬϲ͕ϴϴϬ ϮϬϴ͕ϯϯϬ ϭϭϰ͕ϰϲϱ ϵϯϲ͕ϵϱϱ Ϯ͕Ϭϲϲ͕ϲϯϬ Ϯϲ͕ϰϳϱ
EŽŶĐƵƌƌĞŶƚ>ŝĂďŝůƚŝĞƐ
ƐƐĞƚZĞƚŝƌĞŵĞŶƚKďůŝŐĂƚŝŽŶƐ ϰϬϬ͕ϬϬϬ ϰϬϬ͕ϬϬϬ
>ŽĂŶƐWĂǇĂďůĞ Ͳ Ͳ Ͳ ϰ͕ϯϵϭ͕ϳϱϲ ϰ͕ϯϵϭ͕ϳϱϲ Ͳ
/ŶƚĞƌĨƵŶĚ>ŽĂŶWĂǇĂďůĞ Ͳ ϲϴϴ͕ϴϴϬ Ͳ ϲϴϴ͕ϴϴϬ ϭϱϭ͕ϯϵϯ

ŽŶƐƵŵĞƌĞƉŽƐŝƚƐWĂǇĂďůĞ ϱϭϭ͕ϴϮϬ Ͳ ϲϬϬ Ͳ ϱϭϮ͕ϰϮϬ Ͳ
ŽŵƉĞŶƐĂƚĞĚďƐĞŶĐĞƐ͗>ŽŶŐdĞƌŵ ϭϬϯ͕ϱϲϰ ϯϴ͕ϭϰϭ ϮϮ͕ϰϭϲ ϵϳ͕ϴϲϬ
Ϯϲϭ͕ϵϴϭ Ͳ
EĞƚWĞŶƐŝŽŶ>ŝĂďŝůŝƚǇ ϯϬϰ͕ϯϵϲ ϴϳ͕ϵϯϳ ϴϳ͕ϵϯϳ ϭϵϲ͕ϭϲϲ ϲϳϲ͕ϰϯϲ Ͳ
dŽƚĂůEŽŶĐƵƌƌĞŶƚ>ŝĂďŝůŝƚŝĞƐ ϵϭϵ͕ϳϴϬ ϭ͕Ϯϭϰ͕ϵϱϴ ϭϭϬ͕ϵϱϯ ϰ͕ϲϴϱ͕ϳϴϮ ϲ͕ϵϯϭ͕ϰϳϯ ϭϱϭ͕ϯϵϯ

dŽƚĂů>ŝĂďŝůŝƚŝĞƐ ϭ͕ϳϮϲ͕ϲϲϬ ϭ͕ϰϮϯ͕Ϯϴϴ ϮϮϱ͕ϰϭϴ ϱ͕ϲϮϮ͕ϳϯϳ ϴ͕ϵϵϴ͕ϭϬϯ ϭϳϳ͕ϴϲϴ

ĞĨĞƌƌĞĚ/ŶĨůŽǁZĞůĂƚĞĚƚŽWĞŶƐŝŽŶƐ ϭϴϮ͕ϵϱϬ ϱϮ͕ϴϱϮ ϱϮ͕ϴϱϮ ϭϭϳ͕ϵϬϭ ϰϬϲ͕ϱϱϱ Ͳ
EĞƚWŽƐŝƚŝŽŶ
EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ϱ͕ϵϵϲ͕Ϭϵϱ ϲ͕ϱϴϭ͕ϲϵϵ ϵϬϭ͕ϭϱϬ ϲ͕ϬϭϮ͕Ϯϰϵ ϭϵ͕ϰϵϭ͕ϭϵϯ ϮϮϬ͕ϯϳϬ

ZĞƐƚƌŝĐƚĞĚ ϯϬϬ͕ϴϭϮ ϴϲ͕ϵϬϭ ϴϳ͕ϱϬϭ ϯϯϵ͕ϵϵϯ ϴϭϱ͕ϮϬϳ ϵϬϭ
hŶƌĞƐƚƌŝĐƚĞĚ ϱ͕ϰϳϳ͕ϴϬϭ ;ϰϱϯ͕ϭϵϰͿ ϳϴϴ͕ϳϯϱ ϭ͕ϳϰϯ͕Ϯϵϴ ϳ͕ϱϱϲ͕ϲϰϬ ϳϱ͕ϴϰϬ
dŽƚĂůEĞƚWŽƐŝƚŝŽŶ Ψϭϭ͕ϳϳϰ͕ϳϬϴ Ψϲ͕Ϯϭϱ͕ϰϬϲ Ψϭ͕ϳϳϳ͕ϯϴϲ Ψϴ͕Ϭϵϱ͕ϱϰϬ ΨϮϳ͕ϴϲϯ͕ϬϰϬ Ψ Ϯϵϳ͕ϭϭϭ
dŚĞEŽƚĞƐƚŽƚŚĞ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐĂƌĞĂŶ/ŶƚĞŐƌĂůWĂƌƚŽĨƚŚŝƐ^ƚĂƚĞŵĞŶƚ
Page 35
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
Total Internal
Solid Enterprise Service
Light Water Waste Sewer Funds Funds
Operating Revenues:
Charges for Services $ 9,229,436 $ 1,853,575 $ 1,522,996 $ 2,977,859 $ 15,583,866 $ 115,387
Other Operating Revenues 4,033 1,824 1,082 2,507 9,446 -
Total Operating Revenues 9,233,469 1,855,399 1,524,078 2,980,366 15,593,312 115,387
Operating Expenses:
Purchased Power 5,843,830 - - - 5,843,830 -
Administration 842,694 621,018 158,203 1,378,997 3,000,912 60,051
Depreciation 428,279 430,242 148,910 911,116 1,918,547 25,821
Recycling Center/Litter Control - - 18,259 - 18,259 -
Solid Waste Collection - - 969,805 - 969,805 -
Maintenance 1,361,510 348,354 - 333,453 2,043,317 -
Customer Accounting/Cost Allocation 589,876 168,452 213,927 405,368 1,377,623 -
Fiber Operations 11,518 - - - 11,518 -
Total Operating Expenses 9,077,707 1,568,066 1,509,104 3,028,934 15,183,811 85,872
Operating Income (Loss) 155,762 287,333 14,974 (48,568) 409,501 29,515
NonOperating Revenues (Expenses)

Investment Earnings 43,199 5 3,225 22,613 69,042 587
Interest Expense - (30,314) (2,814) (33,128) (3,563)
Miscellaneous Revenue 128,484 22,031 4,046 627 155,188 -
Intergovernmental 171,850 12,245 18,558 19,196 221,849 -
Sale of Surplus 5,403 - - 5,000 10,403 -
Conservation (252,877) - - - (252,877) -
Total Nonoperating Revenue/ 96,059 3,967 25,829 44,622 170,477 (2,976)
(Expenses)
Income (loss) before contributions 251,821 291,300 40,803 (3,946) 579,978 26,539
Capital Contributions 110,191 133,790 - 755,544 999,525 -
Increase (Decrease) in Net Position 362,012 425,090 40,803 751,598 1,579,503 26,539
Net Position, January 1 11,412,696 5,790,316 1,736,583 7,343,942 26,283,537 270,572
Net Position, December 31 $ 11,774,708 $ 6,215,406 $ 1,777,386 $ 8,095,540 $ 27,863,040 $ 297,111
Page 36
Statement of Cash Flow
Proprietary Funds
Total Internal
Solid Enterprise Service
Light Water Waste Sewer Funds Funds
Cash Flow from Operating Activity

Received from Customers $ 9,174,172 $ 1,824,673 $ 1,511,506 $ 2,935,697 $ 15,446,048 $ 114,092
Payments for goods and services (8,578,052) (1,308,008) (1,343,510) (2,048,557) (13,278,127) (61,761)
Net cash provided by operations $ 596,120 $ 516,665 $ 167,996 $ 887,140 $ 2,167,921 $ 52,331
Cash Flow Non Capital Financing Activities

Received from other sources 310,398 96,428 22,004 97,275 526,105 -
Payments nonoperating expense (252,877) - - - (252,877) (26,724)
Interest on interfund loan 18,872 (30,314) - 15,735 4,293 -
Interfund Loan 4,144 (206,910) - 225,927 23,161 -
Net cash nonoperating activities 80,537 (140,796) 22,004 338,937 300,682 (26,724)
Cash Flow from Investing Activities

Receipts of interest & dividends 24,327 5 3,225 6,878 34,435 587
Net cash investing activity 24,327 5 3,225 6,878 34,435 587
Cash Flow Capital Financing

Received from grants and loans - 86,878 - 591,914 678,792 -
Payments/interest on debts - - - (715,883) (715,883) -
Payments for capital acquistions (390,148) (262,552) (35,581) (900,029) (1,588,310) (7,500)
Net cash used in capital financing (390,148) (175,675) (35,581) (1,023,998) (1,625,402) (7,500)
Net Increase in cash equivalents 310,836 200,200 157,644 208,957 877,636 18,694
Cash and Equivalents, January 1 4,726,760 365 701,152 1,275,276 6,703,553 232,338
Cash and Equivalents, December 31 $ 5,037,596 $ 200,565 $ 858,796 $ 1,484,233 $ 7,581,189 $ 251,032
Reconciliation of operating income to net

cash provided (used) by operating
activities
Operating Income (Loss) $ 155,762 $ 287,333 $ 14,974 $ (48,568) $ 409,501 $ 29,515
Adjustments used to reconcile operating

income to net cash provided (used) by
operating activities
Depreciation 428,278 430,242 148,910 911,116 1,918,546 25,821

Pension Expense (85,363) (35,236) (22,196) (61,388) (204,183) -
(Increase) decrease in acct receivable (59,297) (30,726) (11,654) (44,669) (146,346) (1,295)
(Increase) decrease in inventories (8,149) (32,543) - 15,280 (25,412) 278
(Increase) decrease in prepaid expenses (301) (376) (376) 204 (849) -
Increase (decrease) in acct payable 133,728 (78,169) 35,011 106,392 196,962 (1,988)
Increase (decrease) in compensated - - - - -
absences payable 25,306 (23,860) 3,327 8,773 13,546 -
Increase (decrease) customer credits 6,156 - - - 6,156 -
Adjustment to Net Position - See Note 19 - - - - - -
Total Adjustments 440,358 229,332 153,022 935,708 1,758,420 22,816
Net Cash Provided by Operating Activities $ 596,120 $ 516,665 $ 167,996 $ 887,140 $ 2,167,921 $ 52,331
Page 37
Statement of Fiduciary Net Position
Fiduciary Funds
December 31, 2020
Custodial Funds
2020
Assets
Cash and Cash Equivalents $ 26,368
Receivable 5
Investments -
Total Assets 26,373
Deferred Outflows of Resources -
Liabilities
Custodial Accounts 22,852
Accounts Payable -
Total Liabilities 22,852
Deferred Inflows of Resources -
Net Position
Restricted for:
Outreach 3461
STA 60
Other Governments
Individuals
Total Net Position $ 3,521
Page 38
Statement of Changes Fiduciary Net Position
Fiduciary Funds
Total
Custodial
Funds
Additions
Contributions $ 62,519
Total Additions 62,519
Deductions
Payments to other governments 52,804
Payments to employees 6,666
Total Deductions 59,470
Increase (Decrease) in Fiduciary Net Position 3,049
Net Position - Beginning 472
Net Position - Ending $ 3,521
Page 39
Notes to the Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Cheney have been prepared in conformity with generally accepted
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards
Board (GASB) is the accepted standard setting body for establishing governmental accounting and
financial reporting principles. The significant accounting policies are described below.
A. Reporting Entity
The City of Cheney was incorporated November 28, 1883 and operates under the laws of the State of
Washington applicable to a non-charter code city with a mayor-council form of government. The City
is governed by an elected mayor and seven elected council members.
As required by the generally accepted accounting principles, the City’s financial statements include
the financial position and results of operations of all funds that are controlled by or dependent on the
City. The financial statements include the assets and liabilities of all funds for which the City has a
custodial or trust responsibility.
Control by the City was determined on the basis of budget adoption and resource allocation criteria.
Dependence on the City was determined by the City’s obligation to redeem the organization’s debts,
to finance the organization’s deficits, and the extent to which subsidies from the City constitute a
major portion of the organization’s total non-grant resources. Applying these criteria, the financial
statements do not include the financial position or results of operations for:
Spokane County Library District. The City does not review their budget and is not responsible for
the District’s debt. The City does have an agreement with the District to provide space for the
library.
Spokane County Air Pollution Control Authority. The City has no involvement in the Authority’s
budget, enforcement or maintenance. The authority for this organization is granted by the State
and makes mandatory membership of all small cities. Contributions from the cities are set by
formula and are mandatory.
Spokane County Alcoholism Program. The City has no alcoholism program; thus the County
handles all programs relating to alcoholism for all cities without appropriate programs. State law
allows for this type of arrangement whenever a city cannot put in place a program. Assessment is
a percentage of the alcohol tax which is disbursed to the County to conduct the alcoholism
program.
B. Basis of Presentation - Government-Wide and Fund Financial Statements
The government–wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
Page 40
reported separately from business-type activities, which rely to a significant extent on fees and
charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function
or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with
a specific function or segment. Our policy is to allocate indirect costs to a specific function or segment.
Program revenues include 1) charges to customers who purchase, use or directly benefit from goods,
services, or privileges provided by the given function and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Internally dedicated resources are reported as general revenues rather than program revenues. Taxes
and other items not property included among program revenues are reported instead as general
revenues.
As a general rule the effect of the interfund activity has been eliminated for the government-wide
financial statements.
Separate fund financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial statements.
Major individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements.
The City of Cheney reports the following major governmental funds:
General Fund. This is the City’s primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
Parks and Recreation Fund. The Parks and Recreation fund accounts for all financial resources
associated with the offering of recreation activities, maintenance and operations of all park and
recreation facilities including parks, community pool, and the Wren Pierson Community Center.
The Parks and Recreation fund financial statement includes the operating fund and the capital
fund.
The City of Cheney reports the following major enterprise funds: Light, Water, Solid Waste and Sewer.
Light Fund. This fund accounts for the operations of providing electrical utility services.
Water Fund. This fund accounts for operations of providing water utility services.
Solid Waste Fund. This fund accounts for the operations of providing solid waste collection and
recycling services.
Sewer Fund. This fund accounts for the operations of providing wastewater collection and
wastewater treatment services.
Page 41
Additionally, the City of Cheney reports the following fund types:
Internal Service Funds. These funds account for unemployment compensation, equipment rental,
and mechanical shop services provided to other departments on a cost-reimbursement basis.
Fiduciary Funds. These funds are custodial in nature and account for funds received and then
disbursed to other agencies. Included in this group are Project Outreach for utility assistance
donations, STA Bus Passes, Municipal Court payments for the state, Employee contributions and
disbursements for the City Sponsored 125 Cafeteria Plan.
C. Measurement Focus, Basis of Accounting
1. Government Wide and Governmental Funds

The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, similar to the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as both are measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the City considers revenues to be available if they are collected within 60 days of the
end of the current fiscal period. The City considers property taxes as available if they are collected
within 60 days after year end. Expenditures generally are recorded when a liability is incurred, as
under accrual accounting. However, debt services expenditures, as well as expenditures related to
compensated absences and claims and judgements, are recorded only when payment is due.
Property taxes, sales taxes, utility taxes, licenses, and interest are considered to be susceptible to
accrual and so have been recognized as revenues of the current fiscal period. General capital asset
acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt
and acquisitions under capital leases are reported as other financing sources.
The City’s general spending prioritization policy is to consider restricted resources first, followed by
committed, assigned, and unassigned amounts when expenditures have been incurred for which
resources in more than one classification could be used.
2. Proprietary Funds
Proprietary fund statements are reported using the same economic resources measurement focus
and full-accrual basis of accounting. Revenues are recorded when earned and expenses are recorded
when liability is incurred regardless of the timing of cash flows.
Page 42
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund’s principal ongoing operations. The principal operating
revenues of the City of Cheney are charges for services. Operating expenses for the City proprietary
funds include purchased power, infrastructure maintenance, solid waste disposal costs, sewer
collection and treatment, administrative expenses, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. Budgetary Information
1. Scope of Budget
Annual appropriated budgets are adopted for all funds, except for agency funds. Governmental
fund budgets are adopted on the modified-accrual basis of accounting and the proprietary fund
budgets are adopted using the accrual basis of accounting.
Annual appropriated budgets are adopted at the level of the fund, and the budgets constitute the
legal authority of expenditures at that level. Subsidiary revenue and expenditure ledgers are
used to compare budgeted amounts with actual revenues and expenditures. Annual
appropriations for all funds lapse at year end.
Encumbrance accounting is employed in all funds. Encumbrances (purchase orders) outstanding

at year end do not constitute expenditures or liabilities because commitments will be re-
appropriated and honored during the subsequent year.
2. Amending the Budget

The Finance Director is authorized to transfer budgeted amounts between two object classes
within departments, except for changes to salaries. Budget transfers for wages and related
benefits can only be authorized by the Mayor or City Administrator. Any revisions that alter the
total expenditures in a fund, or that affect the number of authorized employee positions, salary
ranges, or other conditions of employment must be authorized by City Council.
When the City of Cheney determines that it is in the best interest of the City of Cheney to increase
or decrease the appropriation for a particular fund or department, it may do so by ordinance
approved by one more than the majority after presentation to the City Council and opportunity
for the community to review and comment during the open public meeting.
The budget amounts shown in the financial statements are the final authorized amounts as
revised during the year.
The financial statements contain the original and final budget information. The original budget is
the first complete appropriated budget. The final budget is the original budget adjusted by all
reserves, transfers, and other legally authorized changes applicable for the fiscal year.
Page 43
3. Excess of Expenditures over Appropriations

Two funds completed the 2020 fiscal year with excess expenditures over appropriations.
The Street Fund exceeded the authorized operating budget (exclusive of ending fund balance) of
$404,600 by $9,475. The Street Fund is presented in combination with the Street Equipment
Reserve Fund and the Bicycle Safety Fund in the financial statements as a non-major
governmental fund.
The Garbage Fund exceeded the authorized budget of $1,490,100 by $7,941.
Both budget overages resulted from the year end cost allocation settle up when the actual costs
of the Public Works Administration were allocated to the Street, Water, Garbage and Sewer funds.
The settle up is based on timekeeping for all public works administration employees in the month
of September. The Public Works Director’s time is allocated based on his time allocated on all
public works projects throughout the year.
4. Deficit Net Position

The Arterial Street Fund, a non-major governmental fund, reports a fund deficit of -$20,765 due
to unpaid retainage payable at year end.
E. Assets, Liabilities, Fund Balance, Net Position
1. Cash and Cash Equivalents

It is the City of Cheney’s policy to invest all temporary cash surpluses. At December 31, 2020, the
treasurer was holding $15,432,995 of which $13,452,214 is invested in in short term investments.
This amount is classified on the balance sheet as cash and cash equivalents as well as investments
in various funds. The interest on these investments is prorated to the various funds.
The amounts reported as cash and cash equivalents can also include compensating balances
maintained with certain banks in lieu of payments for services rendered. The average
compensating balance maintained during 2020 was $3,027,529.
For purposes of the statement of cash flows, the City of Cheney considers all highly liquid
investments (including restricted assets) with a maturity of three months or less when purchased
to be cash equivalents.
2. Investments (Deposits and Investments Note No. 4.)
3. Receivables
Taxes receivable consist of property taxes, utility taxes, and sales taxes. Property taxes include
related interest and penalties. (See Property Tax Note No. 5).
Page 44
The City of Cheney assesses the following utility taxes on City of Cheney utilities:
Electric 14.75% *
Water 11%
Solid Waste 6%
Sewer 11%
*14.75% electric utility tax is broken down into 6% electric, 4% Residential Street, and 4.75% Parks
and Recreation
Customer accounts receivable consist of amounts owed from private individuals or organizations
for goods and services including amounts owed for which billings have not been prepared.
4. Amounts Due to and from Other Funds, Governments and Interfund Loans
Activities between funds, that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year, are referred to as “interfund loans receivable/payable.”
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as internal balances. A
separate schedule of interfund loans receivable and payable is furnished in Note 15, Interfund
Balances and Transfers.
5. Inventories
Inventories on governmental funds consist of expendable supplies held for consumption. The
cost is recorded as expenditure at the time the individual items are consumed. The reserve for
inventory is equal to the ending amount of inventory to indicate that a portion of the fund balance
is not available for future expenditures. A comparison to market value is not considered
necessary.
Inventories in proprietary funds are valued by the weighted average method which approximates
to market value.
6. Restricted Assets and Liabilities

These accounts contains customer deposits in both the Light and Solid Waste Funds as well as
restricted cash for debt service in the sewer fund. In the sewer fund, this amount is the final two
payments relating to the DOE#1 Loan received with the 1994 expansion of the Wastewater
Treatment Plant. The current portion of related liabilities is shown as Payables from Current
Restricted Assets. Specific debt service requirements are described in (Long Term Debt Note No.
10).
The restricted assets (cash) of the enterprise funds are composed of the following:
Enterprise Funds
Light Fund - Customer Deposits $511,820
Solid Waste Fund – Customer Deposits 600
Sewer Fund – Payment of Debt 146,136
Total $658,556
Page 45
7. Capital Assets (Capital Assets Note No. 6)

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
sidewalks and similar items), are reported in the applicable governmental or business-type
columns in the government-wide financial statements. Capital assets are defined by the City of
Cheney as assets with an initial, individual cost of more than $7,500 and an estimated useful life
of five or more years. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at the acquisition value at the
date of donation.
Costs for additions or improvements to capital assets are capitalized when they increase the
effectiveness or efficiency of the asset.
The cost for normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset, are not capitalized.
Capitalization thresholds, depreciation methods, and estimated useful lives of capital assets
reported in the government-wide statements and proprietary funds are as follows:
Capitalization Depreciation Method Estimated Useful Life

Threshold
Building and Improvements $7,500 Straight-Line 10 - 40 Years
Equipment $7,500 Straight-Line 5 – 30 Years
Roads-Collectors and Arterials $7,500 Straight-Line 20 years
Electrical Distribution Systems $7,500 Straight-Line 20 – 30 Years
Water Systems $7,500 Straight-Line 20 – 100 Years
Sewer Collection and Treatment $7,500 Straight-Line 20 – 75 Years
8. Compensated Absences
Compensated absences are absences for which employees will be paid, such as vacation, sick,
part-time sick, and comp time earned leave. All vacation, sick, part-time sick, and comp time
earned pay is accrued when incurred in the government-wide and proprietary fund financial
statements.
Vacation pay may be accumulated and carried into future fiscal years, up to thirty (30) days. This
leave is payable upon separation, retirement or death.
Department Heads, Mid-Management, and Management employees may accumulate a

maximum sick leave of 180 days. 100% of outstanding sick leave up to 30 days, 31 st – 180th day
will be compensated at 25% upon retirement, separation, or death.
Non-union employees may accumulate a maximum sick leave of 180 days. 100% of outstanding
sick leave up to 30 days, 31st – 180th day will be compensated at 25% upon retirement, separation,
or death.
Sick leave may accumulate to a total of 180 days for AFSCME S members. 100% of outstanding
sick leave for the 30 days, 25% for the 31st – 180th day is payable upon retirement or death. Upon
separation or layoff, AFSCME S member is eligible for 25% of all sick leave over 480 hours.
Page 46
Sick leave may accumulate to a total of 150 days for AFSCME C members. 100% of outstanding
sick leave for the 24 days, 25% for 25th– 150th day is payable upon retirement, death, or layoff.
Part-time sick leave may be taken by any part-time employee after 90 days of employment. There
is no cash-out of part-time sick allowed upon separation, retirement, or death.
Comp time earned may be paid out upon request, and any remaining accrual is payable upon
separation, retirement, or death.
Members of IBEW may accumulate 120 days of sick leave and upon death, retirement, or
permanent layoff after five (5) years of service will receive 100% of the first 24 days, and 25% of
the remainder, in cash.
LEOFF II members of the IAFF may accumulate 40 shifts of sick leave and receive 25% upon
retirement.
LEOFF II (law enforcement) may accumulate 120 days sick leave and will receive 25% upon
retirement.
The City of Cheney accrual is based on 100% of hours accrued up to contracted limits, based on
the vesting method.
Unpaid Amounts at 12/31/20

Governmental Funds $1,284,830
Proprietary Funds 434,421
Total $1,719,251
The above table shows the total sick, vacation, and comp time accruals at December 31, 2020.
The financial statements have broken the amounts out to show short-term and long-term
liabilities. In addition, there is $16,458 accumulated as wages/benefits payable in Business Type
Activities (Light Fund).
9. Pensions
For purposes of measuring net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, pension expense, information about the fiduciary net
position of all state sponsored pension plans and additions to/deductions from those plans’
fiduciary net position have been determined on the same basis as they are reported by the
Washington State Department of Retirement Systems. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in
accordance with the benefit terms. Investments are reported at fair value.
10. Other Accrued Liabilities

These accounts consist of accrued wages and accrued employee benefits.
11. Long-Term Debt (Long-Term Debt Note No. 10).
Page 47
12. Unearned Revenues

This account includes amounts recognized as receivables but not revenues in governmental funds
because the revenue recognition criteria have not been met. The City of Cheney reports unearned
revenue of $225,928. The primary makeup of the unearned revenue in the governmental
activities is $78,433 from a long-term lease of City property and $135,616 resulting from the
municipal court fees in collections as well as $11,779 in recreation fees paid in 2020 to be used in
2021.
13. Fund Balance Classification

The City of Cheney recognizes the following fund balance components per Governmental
Accounting Standards Board (GASB) No. 54:
x Nonspendable Fund Balance

o Portion of net resources that cannot be spent because of their form.
o Portion of net resources that cannot be spent because they must be maintained
intact.
x Restricted Fund Balance
o Limitations imposed by creditors, grantor, contributors, or laws and regulations
of other governments.
o Limitations imposed by law through constitutional provisions or enabling
legislation (RCW).
x Committed Fund Balance
o Limitation imposed at the highest level of decision making.
o Committed fund balance must be set annually by City Council.
x Assigned Fund Balance
o Intended use by body designated for that purpose.
o Assigned fund balance is set annually by Finance Committee of City Council.
x Unassigned Fund Balance
o Total fund balance in the general fund in excess of nonspendable, restricted,
committed, and assigned fund balance.
o Excess of nonspendable, restricted, and committed fund balance over fund
balance in special revenue funds.
14. Fund Balance Details

The City of Cheney will spend the fund balances in the following order:
1. Restricted
2. Committed
3. Assigned
Process for Committing Funds

x The City Council, being the highest decision-making authority of the City of Cheney, shall
be the sole designator of committed funds.
Page 48
x The Finance Director will, at a minimum on an annual basis, and before the end of the
fiscal year, bring a resolution to the City Council with a listing of resources to be
committed to specific special revenue funds.
x Such resources can only be removed from that commitment by the City Council
x GASB 54 states approval of annual budget does not qualify as commitment of resources.
Governmental Funds – Fund Balance Designation – Detail by Specific Purpose

Fund Balances General Parks Other Total
and Governmental
Recreation Funds
Nonspendable:
Inventory $- $ $5,924 $5,924
Restricted for:
Public Safety 730,437 730,437
Culture and Recreation 519,548 519,548
Tourism 215,441 215,441
Capital 1,355,810 1,355,810
Subtotal – Restricted $- $519,548 $2,301,688 $2,821,236
Committed to:
Road Construction/Streets 151,048 151,048
City Beautification 99,962 99,962
Subtotal - Committed $- $19,415 $400,783 $420,198
Assigned to:
General Government 94,386 94,386
Road Construction/Streets 239,962 239,962
Information Technology 89,162 89,162
Tourism 8,695 8,695
City Beautification 4,002 4,002
Capital 43,711 43,711
$183,548 $553,201 $809,382 $1,546,131
Unassigned: $3,972,534 $-20,765 $3,951,769
Totals $4,156,082 $1,092,164 $3,497,012 $8,745,258
Page 49
15. Minimum Fund Balance

The City of Cheney will maintain an adequate unrestricted fund balance to allow for a cash reserve
and for cash flow purposes in current and future fiscal periods. This fund balance will be reported
in the committed, assigned, and unassigned categories of the general fund in the annual financial
report.
Fund balance will be monitored closely by the Finance Director. If the fund balance should change
(+/-) by 5% annually, the Finance Director will report the variance to the City Administrator and
Mayor and prepare a plan for use or replenishment of fund balance.
NOTE 2 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
There have been no material violations of finance-related legal or contractual provisions.
NOTE 3 - ACCOUNTING AND REPORTING CHANGES
The City of Cheney has implemented GASB 83 – Asset Retirement Obligations in 2020. Please see NOTE
13 for additional information and detail reporting.
The implementation of GASB 87 – Leases has been delayed by the Government Accounting Standards
Board (GASB) until the 2022 fiscal year due to the global Covid-19 pandemic. The City of Cheney will
implement the standard at that time.
NOTE 4 – DEPOSITS AND INVESTMENTS
A. Deposits
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of a failure of a depository financial institution, the City
of Cheney would not be able to recover deposits or will not be able to recover collateral securities that
are in possession of an outside party. The City of Cheney’s deposits and certificates of deposit are mostly
covered by federal depository insurance (FDIC) or by collateral held in a multiple financial institution
collateral pool administered by the Washington Public Deposit Protection Commission (PDPC).
The City of Cheney does not have a deposit policy for custodial credit risk. At December 31, 2020, there
were no balances exposed to custodial credit risk.
The City of Cheney’s deposits are entirely covered by federal depository insurance (FDIC) or by collateral
help in a multiple financial institution collateral pool administered by Washington Public Deposit
Protection Commission(PDPC).
On December 31, 2020, the carrying amount of the City’s cash demand deposit was $1,971,797. Petty
Cash on hand was $12,500. The Cafeteria program balance was $6,666. Additionally, the City of Cheney
Municipal Court recorded a carrying amount in the court account of $16,186.
Page 50
The City of Cheney does not have a deposit policy for custodial credit risk. At December 31, 2020, there
were no balances exposed to custodial credit risk.
B. Investments
Investments are subject to the following risks:
Interest Rate Risk: Interest rate risk is the risk the City of Cheney may face should interest rate
variances affect the fair value of investments. The City of Cheney does not have a formal policy
that addresses interest rate risk.
Credit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not
fulfill its obligations. The City of Cheney does not have a formal policy that addresses credit risk.
Concentration of Credit Risk: Concentration of credit risk is the risk of loss attributable to the
magnitude of an investment of a single issuer. The City of Cheney does not have a formal policy
for concentration of credit risk.
Investments in Local Government Investment Pool (LGIP)
The City of Cheney is a voluntary participant in the Local Government Investment Pool, an external
investment pool operated by the Washington State Treasurer. The pool is not rated and not registered
with the SEC. Rather, oversight is provided by the State Finance Committee in accordance with Chapter
43.250 RCW. Investments in the LGIP are reported at amortized cost, which is the same as the value of
the pool per share. The LGIP does not impose any restrictions on participant withdrawals.
The Office of the State Treasurer prepares a stand-alone financial report for the pool. A copy of the report
is available from the Office of the State Treasurer, PO Box 40200, Olympia, Washington 98504-0200,
online at http://www.tre.wa.gov.
As of December 31, 2020, the City of Cheney held the following investments:
Investment Fair Value Total

State Investment Pool $13,452,214 $13,452,214
NOTE 5 – PROPERTY TAX

The County Treasurer acts as an agent to collect property tax levied in County for all taxing authorities.
Property Tax Calendar

January 1 Tax is levied and become and enforceable lien against properties.
February 14 Tax bills are mailed.
April 30 First of two equal installment payments is due.
May 31 Assessed value of property established for next year’s levy at 100% of market value
October 31 Second installment is due.
Page 51
Property tax is recorded as a receivable and revenue when levied. Property tax collected in advance of
the fiscal year to which it applies is recorded as deferred inflow and recognized as revenue of the period
to which it applies. No allowance for uncollectible tax is established because delinquent taxes are
considered fully collectible. Prior year levies were recorded using the same principal, and delinquent taxes
are evaluated annually.
The City of Cheney may levy up to $3.375 per $1,000 of assessed valuation for general governmental
services. The City of Cheney’s regular levy for 2020 was $3.10 per $1,000 on an assessed valuation of
$704,274,338 for a total regular levy of $2,182,900 before adjustments by the Spokane County Assessor.
The Emergency Medical Service Levy is in year 2 of 6. The 2020 EMS Levy was $.50 per $1,000 on an
assessed valuation of $704,274,338 for a total levy of $352,100.
Washington State Constitution and Washington State Law, RCW 84.52.043 limit the rate.
NOTE 6 – CAPITAL ASSETS
A. Capital Assets
Capital assets activity for the year ended December 31, 2020 was as follows:
Beginning Increases Decreases/ Ending Balance
Balance 1/1/2020 Adjustments 12/31/2020
Governmental Activities
Capital Assets, not being depreciated:

Land $1,206,570 $- $ $1,206,570
Work in Progress/Not yet Assigned 586 10,887 - 11,473
Capital Assets, being depreciated
Buildings 4,718,122 94,289 4,812,411
Other Improvements 4,598 4,598
Machinery & Equipment 5,457,545 350,743 35,191 5,843,479
Infrastructure 33,918,429 1,437,392 35,355,821
Total Capital Assets being depreciated 44,098,694 1,882,424 35,191 46,016,309
Less Accumulated Depreciation for:
Buildings 3,188,045 146,006 3,334,051
Other Improvements 4,598 4,598
Machinery & Equipment 3,690,377 261,285 35,191 3,986,853
Infrastructure 21,289,524 1,028,460 22,317,984
Total Accumulated Depreciation 28,172,544 1,435,751 35,191 29,643,486
Total Capital Assets, being depreciated, Net 15,926,150 446,673 19,372,823
Governmental Activity, Capital Assets, Net $17,133,306 $457,560 $- $17,590,866
Page 52
Beginning Increases Decreases/ Ending Balance

Balance 1/1/2020 Adjustments 12/31/2020
Business-Type Activities
Capital Assets, not being depreciated:
Land $933,058 $- $- $933,058
Work in Progress/Not yet Assigned 61,837 - -61,644 193
Capital Assets, being depreciated
Buildings 22,694,554 498,706 23,193,260
Other Improvements 2,396,645 2,396,645
Machinery & Equipment 8,501,735 336,978 -122,200 8,716,516
Infrastructure 30,948,112 814,271 -309,676 31,452,707
Total Assets being depreciated 64,541,049 1,649,955 -431,876 65,759,128
Less Accumulated Depreciation for:
Building 13,002,788 715,609 13,718,397
Other Improvements 566,714 24,209 590,923
Machinery & Equipment 5,221,265 421,018 -122,200 5,520,083
Infrastructure 21,889,730 757,711 -309,676 22,337,765
Total Accumulated Depreciation 40,680,497 1,918,547 -431,876 42,167,168
Total Capital Assets, being depreciated, net 23,860,552 -268,592 23,591,960
Business-type Activity, Capital Assets, Net $24,855,447 $-268,592 $-61,644 $24,525,211
Depreciation expense was charged to functions/programs of the primary government as follows:
General Government $122,113
Security of Persons/Property 183,036
Economic Environment 1,646
Transportation 914,351
Culture and Recreation 214,605
Total Depreciation – Governmental Activities $1,435,751
Business-Type Activities:
Light $428,279
Water 430,242
Solid Waste 148,910
Sewer 911,116
Total Depreciation – Business type Activities $1,918,547
All reported capital assets of the City of Cheney are depreciated except for land and assets reported as
construction in process. Improvements are commonly depreciated over the remaining useful life of the
related capital assets. Useful lives for infrastructure were estimated based on the City’s historical records
of necessary improvements and replacement.
NOTE 7 - PENSION PLANS
The following table represents the aggregate pension amounts for all plans subject to the requirements
of the GASB Statement 68, Accounting and Financial Reporting for Pensions for the year 2020.
Page 53
Aggregate Pension Amounts – All Plans

Pension Liabilities -$1,780,095
Pension Assets $1,759,133
Deferred outflows of resources $1,051,890
Deferred inflows of resources -$1,064,130
Pension expense/expenditures $293,344
Substantially all City of Cheney full-time and qualifying part-time employees participate in one of the
following statewide retirement systems administered by the Washington State Department of Retirement
Systems, under cost-sharing multiple-employer public employee defined benefit retirement plans. The
state Legislature establishes, and amends, laws pertaining to the creation and administration of all public
retirement systems.
The Department of Retirement Systems (DRS), a department within the primary government of the State
of Washington, issues a publicly available comprehensive annual financial report (CAFR) that includes
financial statements and required supplementary information for each plan. The DRS CAFR may be
obtained by writing to: Department of Retirement Systems, Communications Unit, P.O. Box 48380,
Olympia, WA 98504-8380; or it may be downloaded from the DRS website at www.drs.wa.gov.
Public Employees’ Retirement System (PERS) Plans 1, 2, and 3
PERS members include employees of local governments. PERS is comprised of three separate pension
plans for membership purposes. PERS 1 plans 1 and 2 are defined benefit programs, and PERS plan 3 is a
defined benefit plan with a defined contribution component.
PERS Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined as
two percent of the member’s average final compensation (AFC) times the member’s years of service. The
AFC is the average of the member’s 24 highest consecutive service months. Members are eligible for
retirement from active status at any age with at least 30 years of service, at age 55 with at least 25 years
of service, or at age 60 with at least five years of service. Members retiring from active status prior to the
age of 65 may receive actuarially reduced benefits. Retirement benefits are actuarially reduced to reflect
the choice of a survivor benefit. Other benefits include duty and non-duty disability payments, an optional
cost-of-living adjustment (COLA), and a one-time duty-related death benefit, if found eligible by the
Department of Labor and Industries. PERS 1 members were vested after the completion of five years of
eligible service. The plan was closed to new entrants on September 30, 1977.
Contributions
The PERS Plan 1 member contribution rate is established by State statute at 6 percent. The employer
contribution rate is developed by the Office of the State Actuary and includes an administrative expense
component that is currently set at 0.18 percent. Each biennium, the state Pension Funding Council adopts
Plan 1 employer contribution rates. The PERS Plan 1 required contribution rates (expressed as a
percentage of covered payroll) for 2020 were as follows:
Page 54
PERS Plan 1
Actual Contribution Rates: Employer Employee*
January – August 2020
PERS Plan 1 7.92% 6.00%
PERS Plan 1 UAAL 4.76% -
Administrative Fee 0.18% -
Total 12.86% 6.00%
September -December 2020
PERS Plan 1 7.92% 6.00%
Administration Fee 0.18% -
Total 12.97% 6.00%
* For employees participating in JBM, the contribution rate was 12.26%
PERS Plan 2/3 provides retirement, disability and death benefits. Retirement benefits are determined as
two percent of the member’s average final compensation (AFC) times the member’s years of service for
Plan 2 and 1 percent of AFC for Plan 3. The AFC is the average of the member’s 60 highest-paid
consecutive service months. There is no cap on years of service credit. Members are eligible for
retirement with a full benefit at 65 with at least five years of service credit. Retirement before age 65 is
considered an early retirement. PERS Plan 2/3 members who have at least 20 years of service credit and
are 55 years of age or older, are eligible for early retirement with a benefit that is reduced by a factor that
varies according to age for each year before age 65. PERS Plan 2/3 members who have 30 or more years
of service credit and are at least 55 years old can retire under one of two provisions:
x With a benefit that is reduced by three percent for each year before age 65; or
x With a benefit that has a smaller (or no) reduction (depending on age) that imposes stricter
return-to-work rules.
PERS Plan 2/3 members hired on or after May 1, 2013 have the option to retire early by accepting a
reduction of five percent for each year of retirement before age 65. This option is available only to those
who are age 55 or older and have at least 30 years of service credit. PERS Plan 2/3 retirement benefits
are also actuarially reduced to reflect the choice of a survivor benefit. Other PERS Plan 2/3 benefits
include duty and non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at
three percent annually and a one-time duty related death benefit, if found eligible by the Department of
Labor and Industries. PERS 2 members are vested after completing five years of eligible service. Plan 3
members are vested in the defined benefit portion of their plan after ten years of service; or after five
years of service if 12 months of that service are earned after age 44.
PERS Plan 3 defined contribution benefits are totally dependent on employee contributions and
investment earnings on those contributions. PERS Plan 3 members choose their contribution rate upon
joining membership and have a chance to change rates upon changing employers. As established by
statute, Plan 3 required defined contribution rates are set at a minimum of 5 percent and escalate to 15
percent with a choice of six options. Employers do not contribute to the defined contribution benefits.
PERS Plan 3 members are immediately vested in the defined contribution portion of their plan.
Page 55
Contributions
The PERS Plan 2/3 employer and employee contribution rates are developed by the Office of the State
Actuary to fully fund Plan 2 and the defined benefit portion of Plan 3. The Plan 2/3 employer rates include
a component to address the PERS Plan 1 UAAL and an administrative expense that is currently set at 0.18
percent. Each biennium, the state Pension Funding Council adopts Plan 2 employer and employee
contribution rates and Plan 3 contribution rates. The PERS Plan 2/3 required contribution rates (expressed
as a percentage of covered payroll) for 2020 were as follows:
PERS Plan 2/3

Actual Contribution Rates: Employer 2/3 Employee 2*
January - August 2020
PERS Plan 2/3 7.92% 7.90%
Employee PERS Plan 3 Varies
Total 12.86% 7.90%
September - December 2020
PERS Plan 2/3 7.92% 7.90%
Employee PERS Plan 3 Varies
Total 12.97% 7.90%
* For employees participating in JBM, the contribution rate was 19.75%.
The City of Cheney’s actual PERS plan contributions were $632,873 to PERS Plan 2/3 for the year ended
December 31, 2020.
Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF)
LEOFF membership includes all full-time, fully compensated, local law enforcement commissioned
officers, firefighters, and as of July 24, 2005, emergency medical technicians. LEOFF is comprised of two
separate defined benefit plans.
LEOFF Plan 1 provides retirement, disability and death benefits. Retirement benefits are determined per
year of service calculated as a percent of final average salary (FAS) as follows:
x 20+ years of service – 2.0% of FAS

x 10-19 years of service – 1.5% of FAS
x 5-9 years of service – 1% of FAS
The FAS is the basic monthly salary received at the time of retirement, provided a member has held the
same position or rank for 12 months preceding the date of retirement. Otherwise, it is the average of the
Page 56
highest consecutive 24 months’ salary within the last ten years of service. Members are eligible for
retirement with five years of service at the age of 50. Other benefits include duty and non-duty disability
payments, a cost-of living adjustment (COLA), and a one-time duty-related death benefit, if found eligible
by the Department of Labor and Industries. LEOFF 1 members were vested after the completion of five
years of eligible service. The plan was closed to new entrants on September 30, 1977.
Contributions
Starting on July 1, 2000, LEOFF Plan 1 employers and employees contribute zero percent, as long as the
plan remains fully funded. The LEOFF Plan I had no required employer or employee contributions for fiscal
year 2018. Employers paid only the administrative expense of 0.18 percent of covered payroll.
LEOFF Plan 2 provides retirement, disability and death benefits. Retirement benefits are determined as
two percent of the final average salary (FAS) per year of service (the FAS is based on the highest
consecutive 60 months). Members are eligible for retirement with a full benefit at 53 with at least five
years of service credit. Members who retire prior to the age of 53 receive reduced benefits. If the member
has at least 20 years of service and is age 50, the reduction is three percent for each year prior to age 53.
Otherwise, the benefits are actuarially reduced for each year prior to age 53. LEOFF 2 retirement benefits
are also actuarially reduced to reflect the choice of a survivor benefit. Other benefits include duty and
non-duty disability payments, a cost-of-living allowance (based on the CPI), capped at three percent
annually and a one-time duty-related death benefit, if found eligible by the Department of Labor and
Industries. LEOFF 2 members are vested after the completion of five years of eligible service.
Contributions
The LEOFF Plan 2 employer and employee contribution rates are developed by the Office of the State
Actuary to fully fund Plan 2. The employer rate included an administrative expense component set at 0.18
percent. Plan 2 employers and employees are required to pay at the level adopted by the LEOFF Plan 2
Retirement Board.
Effective July 1, 2017, when a LOEFF employer charges a fee or recovers costs for services rendered by a
LEOFF 2 member to a non-LEOFF 2 employer, the LEOFF employer must cover both the employer and
state contributions on the LEOFF 2 basic salary earned for those services. The state contribution rate
(expressed as a percentage of covered payroll) was 3.44% as of July 1, 2020.
The LEOFF Plan 2 required contribution rates (expressed as a percentage of covered payroll) for 2020 were
as follows:
LEOFF Plan 2
Actual Contribution Rates: Employer Employee
January – December 2020
State and local governments 5.15% 8.59%
Total 5.33% 8.59%
The City of Cheney’s actual contributions to the plan were $139,545 for the year ended December 31,
2020.
Page 57
The Legislature, by means of a special funding arrangement, appropriates money from the state General
Fund to supplement the current service liability and fund the prior service costs of Plan 2 in accordance
with the recommendations of the Pension Funding Council and the LEOFF Plan 2 Retirement Board. This
special funding situation is not mandated by the state constitution and could be changed by statute. For
the state fiscal year ending June 30, 2020, the state contributed $76,297,643 to LEOFF Plan 2. The amount
recognized by the City of Cheney as its proportionate share of this amount is $91,578.
Actuarial Assumptions
The total pension liability (TPL) for each of the DRS plans was determined using the most recent actuarial
valuation completed in 2019 with a valuation date of June 30, 2019. The actuarial assumptions used in
the valuation were based on the results of the Office of the State Actuary’s (OSA) 2013-2018 Experience
Study and the 2019 Economic Experience Study.
Additional assumptions for subsequent events and law changes are current as of the 2019 actuarial
valuation report. The TPL was calculated as of the valuation date and rolled forward to the measurement
date of June 30, 2020. Plan liabilities were rolled forward from June 30, 2019, to June 30, 2020, reflecting
each plan’s normal cost (using the entry-age cost method), assumed interest and actual benefit payments.
x Inflation: 2.75% total economic inflation; 3.50% salary inflation

x Salary increases: In addition to the base 3.50% salary inflation assumption, salaries are also
expected to grow by promotions and longevity.
x Investment rate of return: 7.4%
Mortality rates were developed using the Society of Actuaries’ Pub. H-2020 mortality rates, which vary by
member status, as the base table. The OSA applied age offsets for each system, as appropriate, to better
tailor the mortality rates to the demographics of each plan. OSA applied the long-term MP-2017
generational improvement scale, also developed by the Society Actuaries, to project mortality rates for
every year after the 2010 base table. Mortality rates are applied on a generational basis; meaning, each
member is assumed to receive additional mortality improvements in each future year throughout his or
her lifetime.
There were changes in methods and assumptions since the last valuation.
x OSA updated its demographic assumptions based on the results of its latest demographic experience
study. See OSA’s 2013-2018 Demographic Experience Study at leg.wa.gov/osa.
x OSA updated the Early Retirement Factors and Joint-and-Survivor factors used in its model to match
the ones implemented by DRS on October 1, 2020. These factors are used to value benefits for
members who elect to retire early and for survivors of members that die prior to retirement.
x The valuation includes liabilities and assets for Plan 3 members purchasing Total Allocation Portfolio
annuities when determining contribution rates and funded status.
x OSA simplified its modeling of medical premium reimbursements for survivors of duty-related deaths
in LEOFF 2.
Page 58
x OSA changed its method of updating certain data items that change annually, including the public
safety duty-related death lump sum and Washington state average wage. OSA set these values at
2018 and will project them into the future using assumptions until the next Demographic Experience
Study in 2025. See leg.wa.gov/osa for more information on this method change.
Discount Rate
The discount rate used to measure the total pension liability for all DRS plans was 7.4 percent.
To determine that rate, an asset sufficiency test was completed to test whether each pension plan’s
fiduciary net position was sufficient to make all projected future benefit payments for current plan
members. Based on OSA’s assumptions, the pension plans’ fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-
term expected rate of return of 7.4 percent was used to determine the total liability.
Long-Term Expected Rate of Return
The long-term expected rate of return on the DRS pension plan investments of 7.4 percent was
determined using a building-block-method. In selecting this assumption, the Office of the State Actuary
(OSA) reviewed the historical experience data, considered the historical conditions that produced past
annual investment returns, and considered capital market assumptions and simulated expected
investment returns provided by the Washington State Investment Board (WSIB). The WSIB uses the
capital market assumptions and their target asset allocation to simulate future investment returns over
various time horizons.
Estimated Rates of Return by Asset Class
Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s
target asset allocation as of June 30, 2020, are summarized in the table below. The inflation component
used to create the table is 2.2 percent and represents the WSIB’s most recent long-term estimate of broad
economic inflation.
% Long-Term Expected Real Rate of

Asset Class Target Allocation Return Arithmetic
Fixed Income 20% 2.20%
Tangible Assets 7% 5.10%
Real Estate 18% 5.80%
Global Equity 32% 6.30%
Private Equity 23% 9.30%
100%
Sensitivity of Net Pension Asset
The table below presents the City of Cheney’s proportionate share of the net pension liability calculated
using the discount rate of 7.4 percent, as well as what the City of Cheney’s proportionate share of the net
Page 59
pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (6.4
percent) or 1-percentage point higher (8.4 percent) than the current rate.
1% Decrease (6.4%) Current Discount Rate (7.4%) 1% Increase (8.4%)

PERS 1 $1,523,979 $1,216,695 $948,711
PERS 2/3 $3,505,626 $563,400 -$1,859,524
LEOFF 1 -$216,262 -$265,694 -$308,462
LEOFF 2 -$29,566 -$1,493,438 -$2,692,058
Pension Plan Fiduciary Net Position
Detailed information about the State’s pension plans’ fiduciary net position is available in the separately
issued DRS financial report.
Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
At June 30, 2020, the City of Cheney reported a total pension asset of $1,759,133 and a total pension
liability of $1,780,095 for its proportionate share of the net pension liabilities as follows:
Asset/Liability
PERS 1 (Liability) ($1,216,695)
PERS 2/3 (Liability) ($563,400)
LEOFF 1 (Asset) $265,694
LEOFF 2 (Asset) $1,493,438
The amount of the liability (asset) reported above for LEOFF Plans 1 and 2 reflects a reduction for State
pension support provided to the City of Cheney. The amount recognized by the City of Cheney as its
proportionate share of the net pension liability/(asset), the related State support, and the total portion of
the net pension liability/(asset) that was associated with the City of Cheney were as follows:
LEOFF 1 Asset LEOFF 2 Asset

Employer’s proportionate share $-265,694 $-1,493,438
State’s proportionate share of the
net pension asset associated with -1,797,150 -954,941
employer
TOTAL $-2,062,844 $-2,448,379
Page 60
At June 30, the City of Cheney’s proportionate share of the collective net pension liabilities was as follows:
Proportionate Proportionate Change in

Share 6/30/19 Share 6/30/20 Proportion
PERS 1 .029899% .034462% .004563%
PERS 2/3 .037073% .044052% .006979%
LEOFF 1 .013767% .014069% .000302%
LEOFF 2 .067636% .073213% .005577%
Employer contribution transmittals received and processed by the DRS for the fiscal year ended June 30
are used as the basis for determining each employer’s proportionate share of the collective pension
amounts reported by the DRS in the Schedules of Employer and Nonemployer Allocations for all plans
except LEOFF 1.
LEOFF Plan 1 allocation percentages are based on the total historical employer contributions to LEOFF 1
from 1971 through 2000 and the retirement benefit payments in fiscal year 2019. Historical data was
obtained from a 2011 study by the Office of the State Actuary (OSA). In fiscal year 2017, the state of
Washington contributed 87.12 percent of LEOFF 1 employer contributions and all other employers
contributed the remaining 12.88 percent of employer contributions. LEOFF 1 is fully funded and no
further employer contributions have been required since June 2000. If the plan becomes underfunded,
funding of the remaining liability will require new legislation. The allocation method the plan chose
reflects the projected long-term contribution effort based on historical data.
In fiscal year 2020, the state of Washington contributed 39 percent of LEOFF 2 employer contributions
pursuant to RCW 41.27.725 and all other employers contributed the remaining 61 percent of employer
contributions.
The collective net pension liability (asset) was measured as of June 30, 2020, and the actuarial valuation
date on which the total pension liability (asset) is based was as of June 30, 2019, with update procedures
used to roll forward the total pension liability to the measurement date.
Pension Expense
For the year ended December 31, 2020, the City of Cheney recognized pension expense as follows:
Pension Expense
PERS 1 $243,367
PERS 2/3 23,573
LEOFF 1 -19,006
LEOFF 2 45,410
TOTAL $293,344
Page 61
Deferred Outflows of Resources and Deferred Inflows of Resources
At December 31, 2020, the City of Cheney reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources.
PERS 1 Deferred Outflows of Deferred Inflows

Resources of Resources
Differences between expected & actual experience $0 $0
Net difference between projected and actual $0 $-6,774
investment earnings on pension plan investments
Changes of assumptions $0 $0
Changes in proportion and differences between $0 $0
contributions and proportionate share of
contributions
Contributions subsequent to the measurement date $121,186 $0
TOTAL $121,186 $-6,774
PERS 2/3 Deferred Outflows Deferred Inflows of
of Resources Resources
Differences between expected & actual experience $201,689 $-70,607
Changes of assumptions $8,024 $-384,851
Changes in proportion and differences between $171,386 $-182,187
contributions
TOTAL $584,170 $-666,258
LEOFF 1 Deferred Outflows of Deferred Inflows of

Resources Resources
Differences between expected & actual experience $0 $0
Changes of assumptions $0 $0
Changes in proportion and differences between $0 $0
contributions
Contributions subsequent to the measurement $0 $0
date
TOTAL $0 $-2,779
Page 62
LEOFF 2 Deferred Outflows of Deferred Inflows of

Resources Resources
Differences between expected & actual experience $206,642 $-26,487
Changes of assumptions $2,164 $-231,250
Changes in proportion and differences between $66,953 $-113,936
contributions
TOTAL $346,534 $-388,319
Deferred outflows of resources related to pensions resulting from the City of Cheney’s contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the
year ended December 31, 2020. Other amounts reported as deferred outflows and deferred inflows of
resources related to pensions will be recognized in pension expense as follows.
Year ended December 31: PERS 1 PERS2/3 LEOFF 1 LEOFF 2

2020 -$30,741 -$246,523 -$9,921 -$117,272
2021 -967 -68,627 -517 -18,665
2022 9,380 -2,732 2,820 18,215
2023 15,554 48,689 4,839 46,080
2024 - -19,528 - -13,926
Thereafter - 3,563 - -26,993
Total -$6,774 -$285,158 -$2,779 -$112,561
NOTE 8 - DEFINED BENEFIT OTHER POSTEMPLOYMENT BENEFIT (OPEB) PLANS
The following table represents the aggregate OPEB amounts for all plans subject to the requirement of
GASB Statement 75 for the year 2020:
Aggregate OPEB Amounts

OPEB Liabilities $3,332,346
Deferred Outflows of Resources $36,166
OPEB Expenses/Expenditures $396,404
Plan Description
As required by the Revised Code of Washington (RCW) Chapter 41.26, the City provides lifetime medical
care for members of the Law Enforcement Officers and Firefighters (LEOFF) retirement system hired
before October 1, 1977 under a defined benefit healthcare plan administered by the City. The members
necessary hospital, medical, and nursing care expenses not payable by worker’s compensation, social
security, insurance provided by another employer, other pension plan, or any other similar source are
covered. Most medical coverage for eligible retirees is provided by one of the city’s employee medical
insurance programs. Under the authorization of the LEOFF Disability Board, direct payment is made for
Page 63
other retiree medical expenses not covered by standard medical plan benefit provisions. Financial
reporting for the LEOFF retiree healthcare plan is included in the City’s Annual Report.
Funding Policy
Funding for LEOFF retire healthcare costs is provided entirely by the city as required by RCW. The City’s
funding policy is based upon pay-as-you-go financing requirements. There are no assets accumulated in
a trust account to fund the OPEB liability. The City of Cheney has six retired and no active LEOFF 1
employees.
Calculation of OPEB Liability

The City of Cheney used the alternative measurement permitted under GASB Statement No. 75. The
Office of the State Actuary (OCA) relied on the 2016 LEOFF 1 Medical Benefits Actuarial Valuation Report
in creating the AMM tool available to local governments with under 100 qualifying employees. The
specific assumptions made by the OCA in preparing the tool are:
x Any active members will immediately retire after the measurement date of the report.
x Assumed each cohort to be 100% male.
x OCA selected the four age-based cohorts for the AMM tool based upon the overall distribution of
the LOEFF 1 eligible population.
x Medical and Long-term care costs were projected form June 30, 2018 to the measurement date
of June 30, 2019 using the healthcare trend rate detailed in the 2018 LEOFF 1 Medical Benefits
Actuarial Valuation Report.
Below are the assumptions and methodology used for the OPEB calculations as provided by the
Washington State Actuary under the alternative measurement method.
x Actuarial Valuation Date 06/30/2020

x Actuarial Measurement Date 06/30/2020
x Discount Rate - Beginning Measurement Year 3.50%
x Discount Rate - Ending of Measurement Year 2.21%
Please see the Required Supplementary Information for the additional disclosure.
The following table provides the actuarial assumptions in the AMM tool:
Sensitivity of the Total OPEB Liability
The following presents the City of Cheney’s OPEB liability.
1% Decrease Total OPEB Liability 1% Increase
Discount Rate $3,761,584 $3,332,346 $2,970,222

Healthcare Trend - 6% $2,987,636 $3,332,346 $3,730,505
Page 64
Change in Total OPEB Liability
City of Cheney - Other Post Employment Benefits

Total OPEB Liability at 1/1/2020 $3,057,870
Service Cost -
Interest 104,910
Change in Benefit Terms -
*Changes Experience Data and Assumptions 291,494
Estimated Benefit Payments -121,928
Total OPEB Liability at 12/31/2020 $3,332,346
At December 31, 2020, the City of Cheney reported deferred outflows and/or deferred inflows of
resources related to OPEB from the following sources:
Deferred Outflows of Deferred Inflows of

Resources Resources
Differences between expected and actual $ $
experience
Change of assumptions
Payments subsequent to the measurement 36,166
date
Total $36,166 $0
Deferred outflows of resources of $36,166 resulting from payments subsequent to the measurement date
will be recognized as a reduction of the total OPEB liability in the year ended December 31, 2021.
A 10-year change in OPEB liability is presented as follows:
Year Ending Total OPEB Liability Change from Previous Year

2020 $3,332,346 $274,476
2019 $3,057,870 -$857,624
2018 $3,915,494 -$130,424
2017 $4,045,918 $1,935,612
2016 $2,110,306 -$104,123
2015 $2,214,429 -$144,915
2014 $2,359,344 -$87,276
2013 $2,446,620 -$194,894
2012 $2,641,514 -$101,763
2011 $2,743,277 -$157,371
*2010 - 2016 is calculated under the previous GASB standard.
NOTE 9 – RISK MANAGEMENT
The City of Cheney is a member of the Washington Cities Insurance Authority (WCIA). Utilizing Chapter
48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation Act), nine cities
originally formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling
Page 65
mechanism for jointly purchasing insurance, jointly self-insuring, and / or jointly contracting for risk
management services. WCIA has a total of 162 members.
New members initially contract for a three-year term, and thereafter automatically renew on an annual
basis. A one-year withdrawal notice is required before membership can be terminated. Termination does
not relieve a former member from its unresolved loss history incurred during membership.
Liability coverage is written on an occurrence basis, without deductibles. Coverage includes general,
automobile, police, errors or omissions, stop gap, employment practices and employee benefits liability.
Limits are $4 million per occurrence in the self-insured layer, and $21 million in limits above the self-
insured layer is provided by reinsurance. Total limits are $25 million per occurrence subject to aggregates
and sublimits. The Board of Directors determines the limits and terms of coverage annually.
Insurance for property, automobile physical damage, fidelity, inland marine, and boiler and machinery
coverage are purchased on a group basis. Various deductibles apply by type of coverage. Property
coverage is self-funded from the members’ deductible to $750,000, for all perils other than flood and
earthquake, and insured above that to $400 million per occurrence subject to aggregates and sublimits.
Automobile physical damage coverage is self-funded from the members’ deductible to $250,000 and
insured above that to $100 million per occurrence subject to aggregates and sublimits.
In-house services include risk management consultation, loss control field services, and claims and
litigation administration. WCIA contracts for certain claims investigations, consultants for personnel and
land use issues, insurance brokerage, actuarial, and lobbyist services.
WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as
determined by an outside, independent actuary. The assessment covers loss, loss adjustment,
reinsurance and other administrative expenses. As outlined in the Interlocal agreement, WCIA retains the
right to additionally assess the membership for any funding shortfall.
An investment committee, using investment brokers, produces additional revenue by investment of

WCIA’s assets in financial instruments which comply with all State guidelines.
A Board of Directors governs WCIA, which is comprised of one designated representative from each
member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy
direction for the organization. The WCIA Executive Director reports to the Executive Committee and is
responsible for conducting the day-to-day operations of WCIA.
Medical Insurance
The City of Cheney, Washington is a member of the Association of Washington Cities Employee Benefit
Trust Health Care Program (AWC Trust HCP). Chapter 48.62 RCW provides that two or more local
government entities may, by Interlocal agreement under Chapter 39.34 RCW, form together or join a pool
Page 66
or organization for the joint purchasing of insurance, and/or joint self-insurance, to the same extent that
they may individually purchase insurance, or self-insure.
An agreement to form a pooling arrangement was made pursuant to the provisions of Chapter 39.34 RCW,
the Interlocal Cooperation Act. The AWC Trust HCP was formed on January 1, 2014 when participating
cities, towns, and non-city entities of the AWC Employee Benefit Trust in the State of Washington joined
together by signing an Interlocal Governmental Agreement to jointly self-insure certain health benefit
plans and programs for participating employees, their covered dependents and other beneficiaries
through a designated account within the Trust.
As of December 31, 2020, 262 cities/towns/non-city entities participate in the AWC Trust HCP.
The AWC Trust HCP allows members to establish a program of joint insurance and provides health and
welfare services to all participating members.
In April 2020, the Board of Trustees adopted a large employer policy, requiring newly enrolling groups
with 600 or more employees to submit medical claims experience data in order to receive a quote for
medical coverage. Outside of this, the AWC Trust HCP pools claims without regard to individual member
experience. The pool is actuarially rated each year with the assumption of projected claims run-out for all
current members.
The AWC Trust HCP includes medical, dental and vision insurance through the following carriers: Kaiser
Foundation Health Plan of Washington, Kaiser Foundation Health Plan of Washington Options, Inc.,
Regence BlueShield, Asuris Northwest Health, Delta Dental of Washington, and Vision Service Plan. Eligible
members are cities and towns within the state of Washington. Non-City Entities (public agency, public
corporation, intergovernmental agency, or political subdivision within the state of Washington) are
eligible to apply for coverage into the AWC Trust HCP, submitting application to the Board of Trustees for
review as required in the Trust Agreement.
Participating employers pay monthly premiums to the AWC Trust HCP. The AWC Trust HCP is responsible
for payment of all covered claims. In 2019, the AWC Trust HCP purchased stop loss insurance for
Regence/Asuris plans at an Individual Stop Loss (ISL) of $1.5 million through Life Map, and Kaiser ISL at
$1,000,000 with Companion Life through ASG Risk Management. The aggregate policy is for 200% of
expected medical claims.
Participating employers’ contract to remain in the AWC Trust HCP for a minimum of three years.
Participating employers with over 250 employees must provide written notice of termination of all
coverage a minimum of 12 months in advance of the termination date, and participating employers with
under 250 employees must provide written notice of termination of all coverage a minimum of 6
months in advance of termination date. When all coverage is being terminated, termination will only
occur on December 31. Participating employers terminating a group or line of coverage must notify the
AWC Trust HCP a minimum of 60 days prior to termination. A participating employer’s termination will
Page 67
not obligate that member to past debts, or further contributions to the AWC Trust HCP. Similarly, the
terminating member forfeits all rights and interest to the AWC Trust HCP account.
The operations of the Health Care Program are managed by the Board of Trustees or its delegates. The
Board of Trustees is comprised of four regionally elected officials from Trust member cities or towns, the
Employee Benefit Advisory Committee Chair and Vice Chair, and two appointed individuals from the
AWC Board of Directors, who are from Trust member cities or towns. The Trustees or its appointed
delegates review and analyze Health Care Program related matters and make operational decisions
regarding premium contributions, reserves, plan options and benefits in compliance with Chapter 48.62
RCW. The Board of Trustees has decision authority consistent with the Trust Agreement, Health Care
Program policies, Chapter 48.62 RCW and Chapter 200-110-WAC.
The accounting records of the AWC Trust HCP are maintained in accordance with methods prescribed by
the State Auditor’s office under the authority of Chapter 43.09 RCW. The AWC Trust HCP also follows
applicable accounting standards established by the Governmental Accounting Standards Board
(“GASB”). In 2018, the retiree medical plan subsidy was eliminated, and is noted as such in the report for
the fiscal year ending December 31, 2018. Year-end financial reporting is done on an accrual basis and
submitted to the Office of the State Auditor as required by Chapter 200-110 WAC. The audit report for
the AWC Trust HCP is available from the Washington State Auditor’s office.
NOTE 10 – LONG TERM DEBT
The following schedule of Long-Term Debt provides a listing of outstanding external debt of the City. As
of December 31, 2020, has outstanding debt obligations consisting of:
Issue Purpose Year Fund Type Original Interest Federal

Amount Rate Arbitrage?
DOE #1 WWTP Construction - 2004 Business-Type $2,481,246 1.5% N
PWTF #6 WWTP Expansion 2006 Business-Type $448,700 5% N
DOE #2 WWTP Expansion 2010 Business-Type $11,569,000 0% N
DOE #3 Sewer Improvement 2018 Business-Type $45,454 1% N
Police Capital Lease Financing of 2017 Governmental $165,834 3.327% N
Lease Police Cars Activities
WA ST/LOCAL Financing of Fire Truck 2018 Governmental $525,000 2.825% N
Activities
Fire Capital Lease Financing of Fire 2020 Governmental $108,790 3.594% N
Lease Air Packs Activities
Page 68
The annual requirements to amortize the above listed debt, including interest are as follows:
Business-Type Governmental
Year Ending December 31, Principal Interest Principal Interest Total
2021 642,262 1,316 55,977 25,807 $725,362
2022 569,841 551 56,730 23,303 650,425
2023 559,517 355 57,512 20,772 638,156
2024 559,517 237 63,321 18,088 641,163
2025 559,517 118 40,000 15,250 614,885
2026 – 2030 2,143,373 0 230,000 43,750 2,417,123
2031 0 0 55,000 1,375 56,375
Total $5,034,027 $2,577 $558,540 $148,345 $5,743,489
All above referenced long-term debt has a fixed interest rate.
Governmental Bond Premium Amortization
Year Ending December 31,

2021 5,770
2022 5,770
2023 5,770
2024 5,770
2025 5,770
2026-2029 28,850
2030 5,760
Total $63,460
NOTE 11 - LEASES
A. Operating Leases
The City of Cheney leases various pieces office equipment under noncancelable operating leases. Total
cost for such leases was $23,647 for the year ended December 31, 2020.
The future minimum lease payments for these leases are as follows:
Year Ending December 31, Amount

2021 16,721
2022 8,835
2023 8,835
2024 8,835
Total $43,226
B. Capital Leases
The City of Cheney has capital lease agreements for the purchase of police cars, and in 2020, the purchase
of fire air packs. In 2020, the City entered into a lease agreement for financing fire air packs for a total of
$161,090 with a down payment of $52,300.
The lease agreements qualify as a capital lease for accounting purposes; therefore, have been recorded
at the present value of its future minimum lease payments as of the inception date.
Page 69
The assets acquired through capital leases are as follows:

Asset Governmental Activities
Police: Cars (3) $165,834
Less: Accumulated Depreciation -140,074
Fire: 108,790
Less: Accumulated Depreciation -1,813
Total $132,737
Below is the remaining obligation of the lease payments as of 2020.

Year Ending December 31 Governmental Activities
2021 $20,977
2022 21,731
2023 22,512
2024 23,321
C. Long-Term Operating Leases on City Property

The City of Cheney entered into a ten-year lease agreement on use of City Property. The lease began
September, 2016 with regular lease payments to beginning January, 2017. The lease has an auto increase
in 2019 and will be reviewed against the property assessed valuation in 2021, 2023, and 2025. The total
contract is being held as a receivable in the governmental activities. The following is a table displaying
the amount of revenue to be received annually and the revenue to be recognized in the financial
statements:
Year Ending Annual Lease Recognized

Payment Revenue
2016 $0 $4,007
2017 13,200 13,740
2018 13,200 13,740
2019 14,400 13,740
2020 14,400 13,740
2021 * 14,400 13,740
2022 14,400 13,740
2023 * 14,400 13,740
2024 14,400 13,740
2025 * 14,400 13,740
2026 10,200 9,733
Totals $137,400 $137,400
Property will be reassessed and contract lease payment will be
adjusted to increases in the assessed valuation.
D. Long-Term Lease Purchase Agreement

The City of Cheney entered into two additional lease purchase agreements in 2019. The total number of
lease purchase agreements for property at the Cheney Industrial Park is now three. The first agreement
was made in 2018 for 8.3 years. The two agreements in 2019 are both 200-month agreements - 16.67
years. All purchases recognize the full sale in the year of contract initiation with the sale and gain on sale
of Capital Assets and an established receivable to record the monthly lease payments. The annual lease
payment is increased with a CPI in April of every year. The table below illustrates the initial transaction
Page 70
of establishing the lease purchase agreements and the expected lease payments (without the CPI
adjustment in future years) to complete the sale of the property.
Year Ending Beginning Sale Price on Land Lease Payments Ending

Receivable Receivable
2018 $0 $100,000 $10,000 $90,000
2019 90,000 295,330 18,150 367,180
2020 - - 30,044 337,136
2021 - - 30,044 307,092
2022 - - 30,044 277,048
2023 - - 30,044 247,004
2024 - - 30,044 216,960
2025 - 2029 - - 104,736 112,224
2030 - 3034 - - 88,600 23,624
2035 - 2036 - - 23,624 0
NOTE 12 - CHANGES IN LONG-TERM LIABILITIES
During the year ended December 31, 2020, the following changes occurred in long-term liabilities:
Beginning Ending Current L-T

Long-Term Additions Reductions Long-Term Portion Due
1/1/2020 12/31/2020 One Year
Interfund Loan Payable $197,715 $0 $23,161 $174,554 $23,161
Capital Leases 43,463 108,970 63,892 88,541 20,977
External Loan Payable 500,000 0 30,000 470,000 35,000
Unamortized Premium 69,230 0 5,770 63,460 5,770
Asset Retirement Obligation 0 30,000 0 30,000 0
OPEB Payable 3,057,870 274,476 0 3,332,346 140,000
Pension Liability 966,290 137,369 0 1,103,659 0
Compensated Absences 920,032 364,798 0 1,284,830 374,921
Government Activity
Long-Term Liabilities $5,754,600 $915,613 $122,823 $6,547,390 $599,829
Business-Type Activities:
External Loan Payable $5,747,087 $ $713,069 $5,034,018 $642,262
Asset Retirement Obligations 0 400,000 0 400,000 0
Pension Obligations 543,538 132,898 0 676,436 0
Compensated Absences 423,504 10,917 0 434,421 172,440
Business-type Activity
Long-Term Liabilities $6,714,129 $543,815 $713,069 $6,544,875 $814,702
Internal service funds predominately serve the governmental funds and any long-term liability for the
internal service funds would be included in the above governmental activities. The interfund loan payable
in the governmental activities is being held in the internal service funds.
Page 71
NOTE 13 – ASSETS RETIREMENT OBLIGATIONS (ARO)
Asset retirement obligation is a legally enforceable liability associated with the retirement of a tangible
capital asset. The City of Cheney is reporting asset retirement obligations (ARO) in both the governmental
activities and business type activities.
Governmental Activities – Underground Storage Tank

A. The underground storage tank was installed in 1998. The tank is double lined and has leak
detection installed on the tank. To date, there have been no leaks reported on the tank. Although
fully depreciated, the tank is being reported as an ARO due to the scheduled replacement in the
next two years.
B. The Public Works Department provided the estimate on removal, fill and soil testing that will be
required by the Department of Ecology when removing the tank.
C. The following Table displays the install costs, depreciation, and the ARO reported for this asset.
Asset Install Date Install Cost Depreciation Remaining ARO Reported

Useful Life
Fuel Tank 1998 $30,800 30,800 0 $30,000
Total ARO - Governmental Activities $30,000
Business Type Activities – Water Wells

A. The City of Cheney has five (5) water wells with remaining useful life and three (3) that have met
their and are exceeding their estimated useful life. Each well has different specifications on well
depth and diameters. Not all wells are being utilized year round as the water requirements vary
depending on temperature during the summer months.
B. The City of Cheney retired a well in 2019 with a closure cost of $80,000 and is reporting that cost
for each remaining well.
C. The following table displays the remaining undepreciated water wells:
Asset Install Date Install Cost Depreciation Remaining ARO Reported

Useful Life
Well #3 2018 $1,884,013 $122,112 47 $80,000
Well #4 1991 42,585 16,734 31 80,000
Well #6 1995 289,297 117,376 35 80,000
Well #7 1995 161,801 73,800 35 80,000
Well #8 2007 688,266 171,394 37 80,000
Total ARO - Business Type Activities $400,000
The City of Cheney owns and operates a Waste Water Treatment Plant as part of the Sewer Fund. The
plant was originally constructed in 1994, expanded in 2009, and includes wetlands. There are 17 separate
pieces of equipment/buildings/wetlands that are currently actively being depreciated for a total value of
$4,385,037 net of depreciation. The Washington State Department of Ecology (DOE) governs funding
and management of wastewater projects and would have oversight on closure and retirement. DOE has
Page 72
notified the City there are no closure and disposal costs to be estimated at this time and all related costs
will be addressed in the design/work plans and specs of any component being replaced or upgraded. The
City will continue to study any ARO costs associated with the facility and wetlands.
NOTE 14 – CONTINGENCIES AND LITIGATION
In the opinion of the management, the City’s insurance policies and/or self-insurance reserves are
adequate to pay all known pending claims.
The City participates in a number of federal and state assisted programs. These grants are subject to audit
by the grantors or their representatives. Such audits could result in requests for reimbursement to grantor
agencies for expenditures disallowed under the terms of the grants. The City of Cheney management
believes that all disallowances, if any, would be immaterial.
NOTE 15 – RESTRICTED NET POSITION
The government-wide statement of net position reports $3,241,434 of restricted component of net
position in the Governmental Activities for inventories and restricted revenues and $699,564 for the Net
Pension Asset. Additionally, the City of Cheney reports $146,136 of restricted component of net position
in the Business-Type Activities for debt service and $668,471 as restricted for Net Pension Asset.
NOTE 16 – INTERFUND BALANCES AND TRANSFERS
A. Interfund Balances
Interfund balances at December 31, 2020 were as follows:
Due From
Equipment Rental Water Total
Light 153,751 387,495 541,246
Due To
Sewer 20,803 387,495 408,298
Total $174,554 $774,990 $949,544
The interfund balances are a result of interfund loans. The City of Cheney utilizes reserve balances
in other funds to provide short and long term interfund loans to other funds. The interest rate is
1% above what the loaning fund is receiving from the Washington State Investment Pool. The
loans, their purpose, and expectation of being repaid within one calendar year from the date of
these statements are listed below:
Loan Purpose Repaid in 2021

Equipment Rental Purchase of Mower with Trailer No
Equipment Rental Purchase of Grader No
Equipment Rental Purchase of Street Sander No
Water Well #3 Re-drill and Improvement No
Page 73
B. Interfund Transfers
Interfund transfers at December 31, 2020 were as follows:
General Total
Transfer
Fund Regular – Purpose

To
Street Fund $125,000 Regular – Street Operations $125,000

Total $125,000 $125,000
NOTE 17 – RECEIVABLE AND PAYABLE BALANCES
A. Receivables
Receivables at December 31, 2020 were as follows:
Governmental Activities Business-Type Activities Total

Taxes (Utility & Property) $1,027,376 $1,663,006 $2,690,382
Other 595,418 21,729 617,147
Due from Other 88,603 299,253 387,856
Governments/Funds (net)
Interfund Loan (net) -174,554 174,554 -
Totals $1,536,843 $2,158,542 $3,695,385
B. Payables
Payables at December 31, 2020 were as follows:
Governmental Activities Business-Type Activities Total

Accounts $156,219 $1,090,765 $1,246,984
Custodial Accounts - 41,860 41,860
Retainage 23,767 15,478 39,245
Due to other Fund 104,030 - 104,030
Interest - 757 757
Capital Lease 20,977 - 20,977
Totals $304,993 $1,148,860 $1,453,853
NOTE 18 – INTERFUND COST ALLOCATIONS
The City annually records and monitors time spent by the Office of the Mayor and the Finance Department
for the Finance and Executive charges and the Public Works Administration Staff for the Public Works
Administration charges to accurately reflect the time charge to the proprietary funds for those charges
for services performed by the general fund. The funds are classified as an operating expense in the Street,
Light, Water, Solid Waste and Sewer funds and are recorded in the General Fund. At year end, the
revenue is closed into the general fund expense accounts to allow for one expense to be recorded in the
financial statements for those operating expenses. In 2020 $886,438 was closed in the expense accounts
in the Mayor’s office, Finance Department, and Legal Services division. $432,916 was closed into Public
Works Administration to account for the maintenance and operations cost of Public Works
Administration.
Page 74
NOTE 19 – INCREASES/DECREASES TO FUND EQUITY
The City posted a minimal number of decreases to fund equity in 2020 on the fund financial statements.
The total amount of $558 was a result of a reduction of receivable for the annual jail billing.
NOTE 20 – COVID-19 PANDEMIC
In February 2020, the Governor of the State of Washington declared a state of emergency in response to
the spread of the deadly new virus known as COVID-19. In the months following the declaration,
precautionary measures to slow the spread of the virus were ordered. These measures included closing
schools, cancelling public events, limiting public and private gatherings, and restricting business
operations, travel and non-essential activities. The length of time these measures will continue to be in
place, and the full extent of the financial impact on the City is unknown at this time.
The City of Cheney response to the declaration of emergency was swift and encompassed all departments
and operations. The safety of employees and citizens was the driving for behind implementing safety
standards in sanitization, employee separation, split work shifts, and remote work sites when available.
The City applied for, and received, $558,450 in CARES funding in response to the costs associated with the
pandemic. Those additional costs include employee costs, sanitization, employee separation, utility
assistance to citizens, and small business grants.
Page 75
REQUIRED SUPPLEMENTARY INFORMATION - State Sponsored Plans
City of Cheney, Washington
Schedule of Proportionate Share of the Net Pension Liability
As of June 30, 2020
Last 6 Fiscal Years
PERS 1
2020 2019 2018 2017 2016 2015
Employer's proportion of the net pension liability (asset) % 0.034462 0.029899 0.03444 0.034173 0.036263 0.035051
Employer's proportionate share of the net pension liability $ 1,216,695 1,149,723 1,538,102 1,621,536 1,947,494 1,833,493
Covered Payroll $ 3,607,104 4,096,437 4,465,687 4,213,038 4,247,577 3,932,716
Employer's proportionate share of the net pension liability as a

percentage of covered employee payroll % 33.73% 28.07% 34.44% 38.49% 45.85% 46.62%
Plan fiduciary net position as a percentage of the total pension

liability % 68.64% 67.12% 63.22% 61.24% 57.03% 59.10%
PERS 2/3
2020 2019 2018 2017 2016 2015
Employer's proportionate share of the net pension liability $ 563,400 360,105 727,374 1,466,874 2,258,112 1,556,388
Covered Payroll $ 3,607,104 4,029,489 4,390,802 4,139,171 4,176,635 3,865,082


liability % 97.22% 97.77% 95.77% 90.97% 85.82% 89.20%
LEOFF 1
2020 2019 2018 2017 2016 2015
Employer's proportionate share of the net pension Asset $ (265,694) (272,120) (255,750) (200,212) (139,449) (169,466)
State's proportionate share of the net pension liability (asset)

associated with the employer $ (1,797,150) (1,840,613) (1,729,885) (1,354,231) (943,231)
Total $ (2,062,844) (2,112,733) (1,985,635) (1,554,443) (1,082,680) (169,466)
Covered Payroll $ - - - - - -


liability % 146.88% 148.78% 144.42% 135.96% 123.74% 127.36%
LEOFF 2
2020 2019 2018 2017 2016 2015
Employer's proportionate share of the net pension asset $ (1,493,438) (1,566,918) (1,486,201) (971,845) (409,328) (700,610)
State's proportionate share of the net pension liability (asset)

associated with the employer $ (954,941) (1,026,122) (962,287) (630,418) (266,852) (104,139)
Total $ (2,448,379) (2,593,040) (2,448,488) (1,602,263) (676,180) (804,749)
Covered Payroll $ 2362250 2,362,250 2,371,959 2,190,794 2,131,986 1,978,447

percentage of covered employee payroll % -63.22% -66.33% -62.66% -44.36% -19.20% -35.41%

liability % 115.83% 119.43% 118.50% 113.36% 106.04% 111.67%
Page 76
REQUIRED SUPPLEMENTARY INFORMATION - State Sponsored Plans
Schedule of Employer Contributions
As of December 31 , 2020
Last 6 Fiscal Years
PERS 1
2020 2019 2018 2017 2016 2015
Statutorily or contractually required contributions $ 235,417 253,859 230,205 217,988 207,365 180,544
Contributions in relation to the statutorily or

contractually required contributions $ (235,417) (253,859) (230,205) (217,988) (207,365) (180,544)
Contribution deficiency (excess) $ - - - - - -
Covered Payroll $ 4,906,820 4,635,371 4,490,567 4,344,343 4,178,552 4,025,502
Contributions as a percentage of covered payroll % 4.80% 5.48% 5.13% 5.02% 4.96% 4.49%
PERS 2/3
2020 2019 2018 2017 2016 2015

Covered Payroll $ 4,906,820 4,577,255 4,416,706 4,269,402 4,105,769 3,957,114
LEOFF 2
2019 2019 2018 2017 2016 2015

Covered Payroll $ 2,592,830 2,590,380 2,506,429 2,241,639 2,188,461 2,075,966
Page 77

Schedule of Changes in Total OPEB Liability and Related Ratios
LEOFF 1 Retirees
For the year ended December 31, 2020
Last 3 Fiscal Years*
2020 2019 2018
Total OPEB liability - beginning $ 3,057,870 $ 3,915,494 $ 4,045,918

Service cost 0 0 0
Interest 104,910 148,928 142,337
Changes in benefit terms 0 0 0
Differences between expected and actual experience 291,494 (870,795) (131,460)
Changes of assumptions 0 0 0
Benefit payments (121,928) (135,757) (141,301)
Other changes
Total OPEB liability - ending 3,332,346 3,057,870 3,915,494
Covered-employee payroll $ - $ - $ -
Total OPEB liability as a % of covered payroll 0.00% 0.00% 0.00%
Notes to Schedule:
* Until a full 10-year trend is compiled, only information for those years available is presented.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75.
There are no active employees in the City of Cheney OPEB program, therefore there
is no covered payroll, or OPEB liability as a % of covered payroll.
Page 78
City of Cheney
Schedule of Expenditures of Federal Awards
Expenditures
From Pass- Passed through

Federal Agency CFDA Other Award Through From Direct to
(Pass-Through Agency) Federal Program Number Number Awards Awards Total Subrecipients Note
FOOD AND NUTRITION Child and Adult Care 10.558 #PR2001 892 - 892 - 1
SERVICE, AGRICULTURE, Food Program
DEPARTMENT OF (via OSPI)
Total CFDA 10.558: 1,961 - 1,961 -
AGRICULTURE, DEPARTMENT WILLIAMS FORK FIRE 10.U01 CO-ARF- 13,309 - 13,309 - 1

OF (via Department of Natural 000641,
Resources) FD2008
AGRICULTURE, DEPARTMENT EAST TROUBLESOME 10.U02 0-611.92, WY- 594 - 594 - 1

OF (via Department of Natural CREEK FIRE MRF-000408
Resources)
OFFICE OF JUSTICE Bulletproof Vest 16.607 #PD2001 - 1,066 1,066 - 1, 3

PROGRAMS, JUSTICE, Partnership Program
DEPARTMENT OF
Highway Planning and Construction Cluster

FEDERAL HIGHWAY Highway Planning and 20.205 STPUS-7681 676,347 - 676,347 - 1, 3
ADMINISTRATION, Construction (004), LA-9549,
TRANSPORTATION, #A19001
DEPARTMENT OF (via WSDOT)
Total Highway Planning and Construction Cluster: 676,347 - 676,347 -
Highway Safety Cluster
Page 79
The accompanying notes are an integral part of this schedule.
City of Cheney
Schedule of Expenditures of Federal Awards
Expenditures
From Pass- Passed through

Federal Agency CFDA Other Award Through From Direct to
(Pass-Through Agency) Federal Program Number Number Awards Awards Total Subrecipients Note
NATIONAL HIGHWAY TRAFFIC State and Community 20.600 #PD2003 618 - 618 - 1
SAFETY ADMINISTRATION, Highway Safety
TRANSPORTATION,
DEPARTMENT OF (via WASPC)
Total Highway Safety Cluster: 618 - 618 -
DEPARTMENTAL OFFICES, COVID 19 - 21.019 MY2001 5,002 - 5,002 - 1, 3

TREASURY, DEPARTMENT OF Coronavirus Relief Fund
THE (via AOC)
DEPARTMENTAL OFFICES, COVID 19 - 21.019 MY2001 558,450 - 558,450 - 1, 3
TREASURY, DEPARTMENT OF Coronavirus Relief Fund
THE (via WA Dept of Commerce)
Total CFDA 21.019: 563,452 - 563,452 -
FEDERAL EMERGENCY COVID 19 - Assistance 97.044 MY2001 3,763 - 3,763 - 1, 3

MANAGEMENT AGENCY, to Firefighters Grant
HOMELAND SECURITY,
DEPARTMENT OF (via FEMA)
Total Federal Awards Expended: 1,260,044 1,066 1,261,110 -
Page 80
The accompanying notes are an integral part of this schedule.
Notes to the Schedule of Expenditures of Federal Awards

Note 1 - Basis of Accounting

This schedule is prepared on the same basis of accounting as the City of Cheney's
financial statements. The City of Cheney uses the modified accrual basis of accounting.
Note 2 - Indirect Cost Rate

The City of Cheney has not elected to use the 10-percent de minimis indirect cost rate
allowed under the Uniform Guidance.
Note 3 - Program Costs

The amounts shown as current year expenditures represent only federal grant portion
of the program costs. Entire program costs, including the City of Cheney's portion, are more
than shown. Such expenditures are recognized following, as applicable, either the cost
principles in the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments, or the cost principles contained in Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
Page 81
ABOUT THE STATE AUDITOR’S OFFICE
The State Auditor’s Office is established in the Washington State Constitution and is part of the
executive branch of state government. The State Auditor is elected by the people of Washington
and serves four-year terms.
We work with state agencies, local governments and the public to achieve our vision of increasing
trust in government by helping governments work better and deliver higher value.
In fulfilling our mission to provide citizens with independent and transparent examinations of how
state and local governments use public funds, we hold ourselves to those same standards by
continually improving our audit quality and operational efficiency, and by developing highly
engaged and committed employees.
As an agency, the State Auditor’s Office has the independence necessary to objectively perform
audits, attestation engagements and investigations. Our work is designed to comply with
professional standards as well as to satisfy the requirements of federal, state and local laws. The
Office also has an extensive quality control program and undergoes regular external peer review
to ensure our work meets the highest possible standards of accuracy, objectivity and clarity.
Our audits look at financial information and compliance with federal, state and local laws for all
local governments, including schools, and all state agencies, including institutions of higher
education. In addition, we conduct performance audits and cybersecurity audits of state agencies
and local governments, as well as state whistleblower, fraud and citizen hotline investigations.
The results of our work are available to everyone through the more than 2,000 reports we publish
each year on our website, www.sao.wa.gov. Additionally, we share regular news and other
information via an email subscription service and social media channels.
We take our role as partners in accountability seriously. The Office provides training and technical
assistance to governments both directly and through partnerships with other governmental support
organizations.
Stay connected at sao.wa.gov Other ways to stay in touch

• Find your audit team • Main telephone:
• Request public records (564) 999-0950
• Search BARS manuals (GAAP and
cash), and find reporting templates • Toll-free Citizen Hotline:
• Learn about our training workshops (866) 902-3900
and on-demand videos
• Email:
• Discover which governments serve you
webmaster@sao.wa.gov
— enter an address on our map
• Explore public financial data
with the Financial Intelligence Tool

Single Audit Report - 2020

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Single Audit Report - 2020

Uploaded by

Copyright:

Available Formats

Financial Statements and Federal Single

Published December 9, 2021 Find out what’s new at SAO

Mayor and City Council

Report on Financial Statements and Federal Single Audit

Americans with Disabilities

Independent Auditor's Report on the Financial Statements .......................................................... 11

About the State Auditor's Office ................................................................................................... 82

Office of the Washington State Auditor sao.wa.gov Page 3

SECTION I – SUMMARY OF AUDITOR’S RESULTS

Internal Control over Financial Reporting:

• Significant Deficiencies: We reported no deficiencies in the design or operation of internal

• Material Weaknesses: We identified no deficiencies that we consider to be material

• Significant Deficiencies: We reported no deficiencies in the design or operation of internal

• Material Weaknesses: We identified no deficiencies that we consider to be material

Office of the Washington State Auditor sao.wa.gov Page 4

CFDA No. Program or Cluster Title

SECTION II – FINANCIAL STATEMENT FINDINGS

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED

Office of the Washington State Auditor sao.wa.gov Page 5

Mayor and City Council

INTERNAL CONTROL OVER FINANCIAL REPORTING

Office of the Washington State Auditor sao.wa.gov Page 6

COMPLIANCE AND OTHER MATTERS

PURPOSE OF THIS REPORT

Pat McCarthy, State Auditor

Office of the Washington State Auditor sao.wa.gov Page 7

Mayor and City Council

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL

Office of the Washington State Auditor sao.wa.gov Page 8

Opinion on Each Major Federal Program

REPORT ON INTERNAL CONTROL OVER COMPLIANCE

Office of the Washington State Auditor sao.wa.gov Page 9

Purpose of this Report

Pat McCarthy, State Auditor

Office of the Washington State Auditor sao.wa.gov Page 10

Mayor and City Council

REPORT ON THE FINANCIAL STATEMENTS

Management’s Responsibility for the Financial Statements

Office of the Washington State Auditor sao.wa.gov Page 11

Office of the Washington State Auditor sao.wa.gov Page 12

OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING

Pat McCarthy, State Auditor

Office of the Washington State Auditor sao.wa.gov Page 13

REQUIRED SUPPLEMENTARY INFORMATION

BASIC FINANCIAL STATEMENTS

REQUIRED SUPPLEMENTARY INFORMATION

Office of the Washington State Auditor sao.wa.gov Page 14

Office of the Washington State Auditor sao.wa.gov Page 15

ϮϬϮϬ ϮϬϭϵ ϮϬϮϬ ϮϬϭϵ ϮϬϮϬ ϮϬϭϵ

'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐ ƵƐŝŶĞƐƐͲƚǇƉĞĐƚŝǀŝƚŝĞƐ dŽƚĂů

'ŽǀĞƌŶŵĞŶƚĂů ƵƐŝŶĞƐƐͲdǇƉĞ ϮϬϮϬ

Net (Expenses) Revenue and

Total Government 25,729,182 17,071,926 1,124,004 2,170,408 (6,873,305) 1,510,461 (5,362,844)

Property Taxes 2,532,844 2,532,844

Total General Revenues 7,952,583 69,042 7,952,583

Change in Net Position 1,079,278 1,579,503 2,658,781

Net Position - Beginning of Year 20,343,745 26,283,537 46,627,282

Net Position - End of Year $ 21,423,023 $ 27,863,040 $ 49,286,063

CITY OF CHENEY, WASHINGTON

Major Funds Other Total

Assets and Outflows of Resources

Liabilities and Fund Balances

Deferred Inflows of Resources

Total Liabilities and Fund Balance $ 4,645,897 $ 1,143,111 $ 3,568,495 $ 9,357,503

'ŽǀĞƌŶŵĞŶƚĂůĐƚŝǀŝƚŝĞƐ ƵƐŝŶĞƐƐͲƚǇƉĞĐƚŝǀŝƚŝĞƐ dŽƚĂů

'ŽǀĞƌŶŵĞŶƚĂů ƵƐŝŶĞƐƐͲdǇƉĞ ϮϬϮϬ

ĞĨĞƌƌĞĚ/ŶĨůŽǁZĞůĂƚĞĚƚŽWĞŶƐŝŽŶƐ ϭϴϮ͕ϵϱϬ ϱϮ͕ϴϱϮ ϱϮ͕ϴϱϮ ϭϭϳ͕ϵϬϭ ϰϬϲ͕ϱϱϱ Ͳ

EĞƚ/ŶǀĞƐƚŵĞŶƚŝŶĂƉŝƚĂůƐƐĞƚƐ ϱ͕ϵϵϲ͕Ϭϵϱ ϲ͕ϱϴϭ͕ϲϵϵ ϵϬϭ͕ϭϱϬ ϲ͕ϬϭϮ͕Ϯϰϵ ϭϵ͕ϰϵϭ͕ϭϵϯ ϮϮϬ͕ϯϳϬ