Cabell Huntington BOH 2018

RFP# 18-128
Cabell County
bhm cpa group, inc.

CE R T IFIE D PUB LI C A CCOUN T A N T S
CABELL-HUNTINGTON BOARD OF HEALTH

CABELL COUNTY, WEST VIRGINIA
REGULAR AUDIT
For the Year Ended June 30, 2018

Fiscal Year Audited Under GAGAS: 2018
One East Campus View Blvd. Suite 300 • Columbus, OH 43235 • (614) 430-0590 • FAX (614) 448-4519
PO Box 875 • 129 Pinckney Street • Circleville, OH 43113 • (740) 474-5210 • FAX (740) 474-7319
PO Box 687 • 528 S. West Street • Piketon, OH 45661 • (740) 289-4131 • FAX (740) 289-3639
PO Box 325 . Huntington, West Virginia 25708 . (304) 521-2648
www.bhmcpagroup.com
TABLE OF CONTENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018
TITLE PAGE
Independent Auditor’s Report ....................................................................................................................... 1
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ........................................................................................................................ 4
Statement of Activities.............................................................................................................................. 5
Fund Financial Statements:
Balance Sheet – Governmental Fund ...................................................................................................... 6
Reconciliation of Governmental Fund Balance to

Net position of Governmental Activities ................................................................................................ 7
Statement of Revenues, Expenditures and Changes in

Fund Balance - Governmental Fund ..................................................................................................... 8
Reconciliation of the Statement of Revenues, Expenditures and

Changes in Fund Balance – Governmental Fund to the
Statement of Activities............................................................................................................................ 9
Statement of Revenues, Expenditures and Changes in Fund

Balance – Budget and Actual – General Fund .................................................................................... 10
Statement of Fiduciary Assets and Liabilities ........................................................................................ 11
Notes to the Financial Statements .............................................................................................................. 12
Schedule of the Board’s Proportionate Share of the Net Pension Liability................................................. 27

Schedule of Board Contributions – West Virginia Public Employees Retirement System ......................... 28
Schedule of the Board’s Proportionate Share of Net OPEB Liability .......................................................... 29
Schedule of Board Contributions – West Virginia Retiree Health Benefit Trust ......................................... 30
Report on Internal Control Over Financial Reporting and on Compliance and

Other Matters Required by Government Auditing Standards ................................................................... 31
bhm cpa group, inc.
Independent Auditor’s Report
Cabell-Huntington Board of Health

Cabell County, West Virginia
703 7th Avenue
Huntington, West Virginia 25701
To the Board of Directors:
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the major fund, and the
aggregate remaining fund information of the Cabell-Huntington Board of Health, Cabell County, West Virginia
(the Board), as of and for the year ended June 30, 2018 and the related notes to the financial statements, which
collectively comprise the Board’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for preparing and fairly presenting these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes designing, implementing,
and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to opine on these financial statements based on our audit. We audited in accordance with
auditing standards generally accepted in the United States of America and the financial audit standards in the
Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan
and perform the audit to reasonably assure the financial statements are free from material misstatement.
An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected
depend on our judgment, including assessing the risks of material financial statement misstatement, whether due
to fraud or error. In assessing those risks, we consider internal control relevant to the Board’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not to the extent needed to opine on the effectiveness of the Board’s internal control.
Accordingly, we express no opinion. An audit also includes evaluating the appropriateness of management’s
accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of
the overall financial statement presentation.
We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinions.
PO Box • Huntington, West Virginia 25708 • (304) 521-2648
www.bhmcpagroup.com
1
Board of Directors
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the major fund, and the aggregate remaining fund information of
the Cabell-Huntington Board of Health, Cabell County, West Virginia, as of June 30, 2018, and the respective
changes in financial position and where applicable, the budgetary comparison for the General Fund for the year
then ended in conformity with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As described in Note 12 to the financial statements, during the year ended June 30, 2018, the Board adopted the
provisions of Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pensions. We did not modify our opinion regarding this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require this presentation to include
Management’s Discussion and Analysis, the information related to the defined benefit pension plan, and the
information related to the other postemployment benefits listed in the table of contents to supplement the basic
financial statements. Although this information is not part of the basic financial statements, the Governmental
Accounting Standards Board considers it essential for placing the basic financial statements in an appropriate
operational, economic, or historical context. The Board has omitted the management’s discussion and analysis.
Our opinion on the basic financial statements is not affected by this missing information.
We applied certain limited procedures to the required supplementary information related to pensions and other
postemployment benefits 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, to 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 and opinion or provide any other assurance.
2
Board of Directors
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2019, on our
consideration of the Board’s internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements and other matters. That report describes the scope
of our internal control testing over financial reporting and compliance, and the results of that testing, and does not
opine 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 Board’s internal control over
financial reporting and compliance.
BHM CPA Group, Inc

Huntington, West Virginia
March 27, 2019
3
STATEMENT OF NET POSITION
AS OF JUNE 30, 2018
Governmental
Activities
ASSETS
Current:
Equity in Pooled Cash and Cash Equivalents $ 2,678,385
Receivables:
Intergovernmental Receivable 148,859
Property Taxes Receivable 176,895
Prepaid Expenses 17,661
Total Current Assets 3,021,800
Capital Assets:
Land 579,500
Land Improvements 136,165
Buildings 2,465,965
Equipment 362,475
Vehicles 21,030
Less: Accumulated Depreciation (1,166,981)
Net Capital Assets 2,398,154
Total Assets 5,419,954
Deferred Outflows of Resources - Pensions 236,722
Deferred Outflows of Resources - OPEB 67,083
Total Deferred Outflows of Resources 303,805
TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 5,723,759
LIABILITIES, DEFERRED INFLOWS OF RESOURCES

AND NET POSITION
Current Liabilities:
Accounts Payable $ 105,772
Accrued Payroll Taxes and Withholdings 102,685
Total Current Liabilities 208,457

Long-Term Liabilities:
Compensated Absences 96,053
Net Other Post Employment Benefits (OPEB) Payable 743,677
Net Pension Liabilities 477,965
Total Long-Term Liabilities 1,317,695
Total Liabilities 1,526,152
Deferred Inflows of Resources:
Unearned grant revenue 36,228
Pensions 149,526
OPEB 187,989
Total Deferred Inflows of Resources 373,743
Total Liabilities and Deferred Inflows of Resources 1,899,895

Net Position:
Net Investment in Capital Assets 2,398,154
Unrestricted 1,425,710
Total Net Position 3,823,864
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION $ 5,723,759
See Accompanying Notes.
4
STATEMENT OF ACTIVITIES
AS OF JUNE 30, 2018
Net (Expense) Revenue

and Changes in
Program Revenues Net Position
Charges
for Operating Grants Governmental
Expenses Services and Contributions Activities
Functions/Programs
Governmental Activities:
Breast & Cervical Cancer $ 3,538 $ - $ - $ (3,538)
Family Planning 74,378 - 51,567 (22,811)
Hepatitis B Grant 1,650 - - (1,650)
Immunizations 428,293 - 6,539 (421,754)
Lab Screening 12,822 - - (12,822)
PH 170,059 216,427 - 46,368
Sexually Transmitted Disease 86,154 - - (86,154)
Tuberculosis 35,911 - 1,650 (34,261)
Threat Preparedness 153,345 - 113,620 (39,725)
Harm Reduction 291,053 61,163 (229,890)
Community Health Promotion 142,913 - - (142,913)
Epidemiology 144,749 - 80,000 (64,749)
Environmental Health 597,978 - - (597,978)
Tobacco Prevention 5,085 - 9,704 4,619
Office Management/Administration 1,128,525 - - (1,128,525)
Total Governmental Activities $ 3,276,453 $ 216,427 $ 324,243 (2,735,783)
General Revenues:
Property Taxes 1,410,942
Intergovernmental:
State 652,386
Local 2,000
Interest 45,427
Rental Income 47,560
Miscellaneous 28,216
Total General Revenues: 2,186,531
Change in Net Position (549,252)
Net Position - Beginning of Year - Restated, See Note 12 4,373,116
Net Position - End of Year $ 3,823,864
5
BALANCE SHEET - GOVERNMENTAL FUND
AS OF JUNE 30, 2018
General
ASSETS
Current:
Equity in Pooled Cash and Cash Equivalents $ 2,678,385
Intergovernmental Receivable 148,859
Taxes Receivable 176,895
Prepaid Expenses 17,661
TOTAL ASSETS $ 3,021,800
LIABILITIES, DEFERRED INFLOWS OF RESOURCES

AND FUND BALANCE
Liabilities:
Accounts Payable $ 105,772
Accrued Payroll Taxes and Withholdings 102,685
Total Liabilities 208,457
Deferred Inflows of Resources:
Unavailable Revenue - Property Taxes & Grants 213,122
Total Liabilities and Deferred Inflows of Resources 421,579
Fund Balance:
Unassigned 2,600,221
Total Fund Balance 2,600,221
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCE $ 3,021,800
6
RECONCILIATION OF GOVERNMENTAL FUND BALANCE TO
NET POSITION OF GOVERNMENTAL ACTIVITIES
AS OF JUNE 30, 2018
Total governmental fund balance $ 2,600,221
Amounts reported for governmental activities in the Statement of Net Position are different
because:
Capital assets used in governmental activities are not financial resources

and, therefore not reported in the funds. 2,398,154
The net pension liability is not due and payable in the current period; therefore, the
liability and related deferred inflows/outflows are not reported in the funds.
Deferred outflows of resources related to pensions 236,722
Deferred outflows of resources related to OPEB 67,083
Deferred inflows of resources related to pensions (149,526)
Deferred inflows of resources related to OPEB (187,989)
Net Pension Liability (477,965)
Net OPEB Liability (743,677)
Long-term liabilities are not due in the current period and therefore are not
reported in the funds:
Compensated absences (96,053)
Certain revenue are not received during the available period and therefore are
recorded as a deferred inflow of resources in the funds. 176,894
Net Position of governmental activities $ 3,823,864
7
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN
FUND BALANCE - GOVERNMENTAL FUND
AS OF JUNE 30, 2018
General
REVENUES:
Property Taxes $ 1,396,901

Intergovernmental:
Federal 274,981
State 640,485
Local 2,000
Charges for Services 216,427
Interest 45,427
Rental Income 47,560
Other Grants 61,163
Miscellaneous Revenue 28,216
Total Revenues 2,713,160
EXPENDITURES:
Current:
Breast & Cervical Cancer 3,537
Family Planning 77,181
Immunizations 432,130
Lab Screening 13,383
Sexually Transmitted Disease 89,472
Tuberculosis 37,334
Hepatitis B 1,650
Threat Preparedness 156,426
Harm Reduction 294,231
Community Health Promotion 144,959
Epidemiology 149,458
Environmental Health 629,363
Tobacco Prevention 4,603
Public Health 175,468
Office Management/Administration 1,093,805
Total Expenditures 3,303,000
Net Change in Fund Balance (589,840)
Fund Balance - Beginning of Year 3,190,061
Fund Balance - End of Year $ 2,600,221
8
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES
AS OF JUNE 30, 2018
Amounts reported for governmental activities in the Statement of Activities are different
because:
Net change in fund balance - governmental fund $ (589,840)
Governmental funds report capital outlays as expenditures. However in the statement

of activities the costs of those assets is allocated over their estimated useful lives and
reported as depreciation expense. This is the amount of depreciation and capital
asset additions in the current period.
Depreciation expense (74,317)
Capital asset additions 8,899
Expenses related to compensated absences reported in the statement of activities do

not require the use of current financial resources and therefore are not reported as
expenditures in the governmental funds. This is the change in compensated
absences from Fiscal Year 2017 to Fiscal Year 2018. 5,498
Contractually required contributions are reported as expenditures in governmental

funds; however, the statement of activities reports these amounts as deferred outflows. 225,395
Except for amounts reported as deferred inflows/outflows, changes in the net pension/OPEB
liabilities are reported as pension/OPEB expense in the statement of activities. (138,928)
Revenues in the statement of activities that do not provide current financial resources
are not reported as revenues in the funds. 14,041
Change in net position of governmental activities $ (549,252)

9
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND
BALANCE - BUDGET AND ACTUAL - GENERAL FUND
(GAAP BASIS)
AS OF JUNE 30, 2018
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Property Taxes $ 1,450,901 $ 1,450,901 $ 1,396,901 $ (54,000)

Intergovernmental:
Federal 292,725 292,725 274,981 (17,744)
State 661,626 661,626 640,485 (21,141)
Local 2,000 2,000 2,000 -
Charges for Services 114,640 114,640 216,427 101,787
Other 289,815 289,815 182,366 (107,449)
Total Revenues $ 2,811,707 $ 2,811,707 $ 2,713,160 $ (98,547)
EXPENDITURES:
Salaries $ 1,562,014 $ 1,562,014 $ 1,599,680 $ (37,666)

Current Operating Expense 1,249,693 1,249,693 1,703,320 (453,627)
Total Expenditures 2,811,707 2,811,707 3,303,000 (491,293)
Net Change in Fund Balance - - (589,840) (589,840)
Fund Balance - Beginning of Year 3,190,061 3,190,061 3,190,061 -
Fund Balance - End of Year $ 3,190,061 $ 3,190,061 $ 2,600,221 $ (589,840)
10
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUND
AS OF JUNE 30, 2018
Benedum
Foundation
ASSETS
Equity in Pooled Cash $ 22,789
Total Assets $ 22,789
LIABILITIES
Undistributed Monies $ 22,789
Total Liabilities $ 22,789
11
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2018
NOTE 1 - NATURE OF ORGANIZATION AND REPORTING ENTITY
The accounting policies and the presentation of the financial report of the Cabell-Huntington Board of Health (the
Board) have been designed to conform to generally accepted accounting principles as applicable to government units,
in accordance with the Governmental Accounting Standards Board (GASB). GASB embodies the official
pronouncements previously issued by the National Council on Governmental Accounting (NGCA).
Reporting Entity
The Cabell-Huntington Board of Health was created by West Virginia Code §16-2-5 to direct, supervise, and carry
out matters relating to the public health for the combined territorial limits of the participating entities. The combined
board consists of at least six members appointed by the participating entities, each serving a five-year term. The board
of health provides the following basic public services and programs in accordance with the state public health
performance-based standards:
Community Health Promotions

Environmental Health Promotions
Communicable or Reportable Disease Prevention and Control
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Presentation
The basic financial statements of the Cabell-Huntington Board of Health 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. Following are the more significant of the Board’s accounting policies.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (the statement of net position and the statement of activities) report
information of all the activities of the primary government and its component units, if any. Governmental activities,
are usually funded by taxes and intergovernmental revenues.
The statement of net position presents the financial condition of the governmental activities of the Board at year end.
The statement of activities demonstrates the degree to which the direct expense 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.
Program revenues include: 1) charges to customers who purchase, use or directly benefit from goods, services or
privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not properly included
among program revenues are reported instead as general revenues.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-Wide Financial Statements
The government-wide financial statements are prepared using a flow of economic resources measurement focus and
the accrual basis of accounting. All assets, deferred outflows of resources, liabilities and deferred inflows of resources
associated with the operation of the Board are included on the statement of net position. The statement of activities
presents increases (e.g., revenues) and decreases (e.g., expenses) in total net position. Revenue is recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Revenues
due from levying authorities are recognized as revenue in the year for which they are levied. Grants and similar items
are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
12
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)
Government-Wide Financial Statements (Continued)
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, and 2) operating grants and contributions. Internally dedicated resources are reported as general revenues
rather than as program revenues.
Governmental Fund Financial Statements
The governmental fund financial statements are reported using the current financial resources measurement focus and
the modified-accrual basis of accounting. Revenue is recognized as soon as it is both measurable and available.
Revenue is considered to be available if it is collected within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the Board considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred,
as under accrual accounting.
Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue, recording of
deferred outflows and inflows of resources, the recording of net pension liabilities, and in the presentation of expenses
versus expenditures.
Fund Accounting
The Board uses funds to report its financial position and the results of its operations. The General Fund is the only
fund maintained by the Board and considered to be a major fund for reporting purposes. Fund accounting is designed
to demonstrate legal compliance and to aid financial management by segregating transactions related to certain
government functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. The
difference between governmental fund assets plus deferred outflows and liabilities plus deferred inflows of resources
is reported as fund balance. The following summarizes the major governmental fund that is presented in the
accompanying financial statements:
Governmental fund type:

General Fund – This fund is the general operating fund of the Board.
Fiduciary fund type:

Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into
four classifications: pension trust funds, investment trust funds, private-purpose trust funds and agency funds. The
Board’s fiduciary fund is an agency fund which is custodial in nature (assets equals liabilities) and does not involve
measurement of results of operations. The Boards’ agency fund accounts for the Clyde Worthington Benedum
Foundation cash.
D. Cash and Cash Equivalents
For the Board, cash and cash equivalents are considered to be cash on hand, demand deposit and short-term
investments with original maturities of less than three months from the date of acquisition.
Investments are reported at fair value, which is determined using selected bases. Short-term investments are reported
at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last
reported sales price at current exchange rates. Managed funds related to the retirement systems not listed on an
established market are reported at estimated fair value as determined by the respective fund managers based on quoted
sales prices of underlying securities. Cash deposits are reported at carrying amount, which reasonably estimates fair
value.
13
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Cash and Cash Equivalents (Continued)
State statutes authorize the government to invest in the State Investment Pool or the Municipal Bond Commission or
to invest such funds in the following classes of securities: Obligations of the United States or any agency thereof,
certificates of deposit (which mature in less than one year), general and direct obligations of the State of West Virginia,
obligations of the federal national mortgage association; indebtedness secured by first lien deed of trusts for property
situated within this state if the payment is substantially insured or guaranteed by the federal government, pooled
mortgage trusts (subject to limitations); indebtedness of any private corporation that is properly graded as in the top
two or three highest rating grades; interest earning deposits which are fully insured or collateralized. Funds registered
with the S.E.C. which have fund assets over three hundred million dollars.
State statute limitation concerning the aforementioned investments include the following: at no time can investment
portfolios consist of more than seventy-five percent of the indebtedness of any private corporation nor can the portfolio
have over twenty-five percent of its portfolio consisting of the indebtedness of a private corporation’s debt which
matures in less than one year; at no time may more than nine percent of the portfolio be invested in securities issued
by a single private corporation or association; and at no time can more than sixty percent of the portfolio be invested
in equity mutual funds.
E. Marketing and Advertising Cost
All marketing and advertising costs incurred have been treated as expenses of operations. Advertising expense for
2018 was $18,863.
F. Prepaid Expenses
Payments made to vendors for services that will benefit periods beyond June 30, 2018 are recorded as prepaid items
by using the consumption method. A current asset for the prepaid amount is recorded at the time of the purchase and
an expense is reported in the year in which services are consumed.
G. Capital Assets
Capital assets which include land, buildings and improvements, equipment, and vehicles are reported in the
government-wide financial statements. Capital assets are defined by the government as assets with an initia1,
individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated assets are recorded at estimated fair
market value at the date of the donation
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives
are not included as part of capital assets.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Capital assets of the primary government are depreciated using the straight-line method over the following useful
lives:
Asset Useful Life
Buildings and Improvements 10-40 Year

Equipment 5-10 Years
Vehicles 4 Years
14
H. Compensated Absences
The liability for compensated absences reported in the government-wide financial statements consist of unpaid,
accumulated annual vacation balances. The liability has been calculated using the vesting method, in which leave
amounts for both employees who currently are eligible to receive termination payments and other employees who are
expected to become eligible in the future to receive such payment upon termination are included.
The entire compensated absence liability is reported in the government-wide financial statements while no liability is
recorded in the governmental funds.
Upon retirement an employee may elect to use any accrued sick leave balances to increase their years of service at
retirement but do not have the option for the Board to pay them a cash payout.
I. Accrued Liabilities and Long-Term Obligations
All payables, accrued liabilities, and long-term obligations are reported in the government-wide financial statements.
In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in
full from current financial resources are reported as obligations of the funds. However, claims and judgments,
compensated absences, and contractually required pension contributions that will be paid from governmental funds
are reported as a liability in the fund financial statements only to the extent that they are due for payment during the
current year.
J. Deferred Outflows/Inflows of Resources
In addition to assets and liabilities, the statement of financial position may report deferred outflows/inflows of
resources. Deferred outflows of resources represent a consumption of net position that applies to a future period and
will not be recognized as an outflow of resources (expense/expenditure) until that time. Deferred inflows of resources
represent an acquisition of net position that applies to a future period and will not be recognized as an inflow of
resources (revenue) until that time. The Board reported deferred inflows and outflows of resources related to pensions
and to OPEB for 2018 in the Statement of Net Position.
K. Use of Resources
When both restricted and unrestricted resources are available for use, generally it is the Board’s policy to use restricted
resources first, then unrestricted resources, as they are needed.
L. Fund Balance
Fund balance is divided into five classifications based primarily on the extent to which the Board is bound to observe
constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows:
 Non-spendable fund balances include amounts that cannot be spent because they are in a non-spendable form,
such as inventory, or prepaid expense amounts, or they are legally or contractually required to be maintained
intact, such as the corpus of a permanent fund.
 Restricted fund balances are restricted due to legal restrictions from creditors (such as through other debt
covenants), grantors, contributors, or laws and regulations of other governments or by legally enforceable
enabling legislation or constitutional provisions.
15
L. Fund Balance (Continued)
 Committed fund balances are amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action of the highest level of decision-making authority, which for the Board of Health is
the five-member Board. Said specific purposes and amounts are recorded in the official Board minutes of the
fiscal year ended June 30, 2018. Those committed amounts cannot be used for any other purpose unless the
Board removes or changes the specified use by taking the same type of action it employed to previously
commit those amounts. Committed fund balance also incorporates contractual obligations to the extent that
existing resources in the fund have been specifically committed for use in satisfying those contractual
requirements.
 Assigned fund balances are constrained by the intent to use funds for specific purposes, but are neither
restricted nor committed. Intent can be expressed by the five-member Board or by a body or official to whom
the Board has delegated the authority to assign amounts to be used for specific purposes. By reporting
particular amounts that are not restricted or committed in a special revenue, capital projects, debt service, or
permanent fund, the Board has assigned those amounts to the purposes of the respective funds.
 Unassigned fund balance is the residual classification for the general fund. This classification represents fund
balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to
specific purposes within the General Fund. In other funds, any negative fund balances would be unassigned.
The Board only reported unassigned fund balance for the fiscal year ended June 30, 2018.
The Board applies restricted resources first when expenditures are incurred for purposes for which either restricted or
unrestricted (committed, assigned and unassigned) amounts are available. Similarly, within unrestricted fund balance,
committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are
incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.
M. Net Position
Net position represents the difference between all other elements on the statement of financial position. Net
investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding
balance of any borrowing used for the acquisition, construction, or improvement of those assets. Net position is
reported as restricted when there are limitations imposed on its use either through constitutional provisions or enabling
legislation adopted by the Board or through external restrictions imposed by creditors, grantors, or laws or regulations
of other governments. An example of net position restricted for other purposes includes activities for various federal
grants and programs. Net position is reported as unrestricted when the net position does not meet the definition of
“net investment in capital assets” or “restricted net position”. The Board’s policy is to first apply restricted resources
when an expense is incurred for purposes for which both restricted and unrestricted net position is available.
N. Estimates
The preparation of the financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
O. Inventory
The Board considers inventories of materials and supplies as expended at the time of purchase. Therefore, they do
not appear in the Board’s financial statements.
16
P. Net Pension Liability
For purposes of measuring the net pension liability and deferred outflows/inflows of the resources related to pensions,
and pension expense, information about the fiduciary net pension of the Board’s Public Employee Retirement System
(PERS), and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as
they are reported by PERS. For this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Q. Net Other Post-Employment Benefits (OPEB) Liability
For purposes of measuring the net OPEB liability and deferred outflows/inflows of the resources related to other post-
employment benefits, and other post-employment benefit expenses, information about the fiduciary net position of
the Board’s Other Post-Employment Benefits Plan (OPEB) of the West Virginia Retiree Health Benefit Trust Fund
(RHBTF) and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis
as they are reported by the RHBTF. 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.
Detailed information on the investment valuation can be found in the plans’ financial statements.
NOTE 3 – BUDGET
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the General Fund.
The Board prepares its budget on the modified accrual basis of accounting. The budget is required to be submitted to
the State Department of Health. The governing body made no material supplementary budgetary appropriations during
the year which were required to be reported to the state. Encumbrance accounting is not employed as an extension of
the formal budgetary process.
NOTE 4 - DEPOSITS WITH FINANCIAL INSTITUTIONS
Custodial credit risk for deposits is the risk that in the event of bank failure, the Board will not be able to recover
deposits or collateral securities that are in the possession of an outside party. As of June 30, 2018, the Board’s bank
balances of $2,710,236 were covered by federal depository insurance and securities held by the pledging financial
institution’s trust department or agent in the entity’s name.
The Boards reconciled cash balance at June 30, 2018 is as follows:
Cash and Cash Equivalents Reconciliation

Book Balance - Cash $2,677,185
Petty Cash 1,200
Benedum Local Inc. Grant - Cash 22,789
Total Cash and Cash Equivalents $2,701,174
NOTE 5 – RECEIVABLES
Receivables at June 30, 2018 consisted primarily of intergovernmental receivables arising from grants, entitlements,
or shared revenues and property taxes in the amount of $148,859. All receivables are considered fully collectible.
A summary of intergovernmental receivables is as follows:
Threat Preparedness Grant $102,583

Epidemiologist Grant 46,276
$148,859
17
NOTE 6 – CAPITAL ASSETS
Capital assets activity for the fiscal year ended June 30, 2018 was as follows:
Balance Balance
6/30/2017 Increases Decreases 6/30/2018
Non-Depreciable Capital Assets:
Land $579,500 $- $- $579,500
Total Non-Depreciable Capital Assets 579,500 - - 579,500
Depreciable Capital Assets:
Buildings and Structures * 2,465,965 - - 2,465,965
Land Improvements 136,165 - - 136,165
Equipment * 464,158 8,899 (110,582) 362,475
Vehicles 41,273 - (20,243) 21,030
Total Capital Assets Being Depreciated 3,107,561 8,899 (130,825) 2,985,635
Less Accumulated Depreciation For:
Buildings and Structures * 686,804 64,869 - 751,673
Land Improvements* 57,701 7,039 - 64,740
Equipment * 437,711 2,409 (110,582) 329,538
Vehicles 41,273 - (20,243) 21,030
Total Accumulated Depreciation 1,223,489 74,317 (130,825) 1,166,981
Total Capital Assets Being
Depreciated, Net 1,884,072 (65,418) - 1,818,654
Total Capital Assets, Net of
Accumulated Depreciation $2,463,572 $(65,418) $- $2,398,154
* - Certain reclassifications were made to beginning balances of capital assets and accumulated depreciation
between capital assets classes which did not have an effect on beginning net position.
Depreciation expense was charged to programs of the governmental activities as follows:
Depreciation
Program Name Expense
Office Management/Administration $74,317
NOTE 7 – RETIREMENT HEALTH PLAN
The Board participates in the West Virginia Other Post-Employment Benefit Plan (OPEB) of the West Virginia Retiree
Health Benefit Trust Fund (RHBTF), a cost sharing multiple-employer defined benefit post-employment healthcare
plan for eligible employees administered by the West Virginia Public Employee Insurance Agency (WVPEIA). The
OPEB Plan provides retiree post-employment health care benefits for participating state and local government
employers.
The provisions of the Code of West Virginia, 1931, as amended (the Code), assigns the authority to establish and
amend benefit plans to the WVPEIA Board of Trustees. The WVPEIA issues a publicly available financial report that
includes financial statements and required supplementary information for the OPEB plan. That report may be obtained
by writing to West Virginia Public Employees Insurance Agency, 601 57th Street, Charleston, WV 25304, or from
the WVPEIA website at www.peia.wv.gov. The Board’s required contributions for OPEB for fiscal year 2018 were
$67,083.
18
NOTE 7 – RETIREMENT HEALTH PLAN (CONTINUED)
Net OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
The projections of the net OPEB liability are based on the substantive plan (the plan as understood by the employer
and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern
of sharing of benefit costs between the employer and plan members to that point. The projection of the net OPEB
liability does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern
of cost-sharing between the employer and plan members in the future. The actuarial methods and assumptions used
include techniques that are designed to reduce the effects of short-term volatility in actuarial estimated liabilities and
the actuarial value of assets, consistent with the long-term perspective of the calculations. However, the preparation
of any estimate of future post-employment costs requires consideration of a broad array of complex social and
economic events. Future changes in the healthcare reform, changes in reimbursement methodology, the emergence of
new and expensive medical procedures and prescription drugs option, changes in the investment rate of return and
other matters increase the level of uncertainty of such estimates. As such, the estimate of post employment program
costs contains considerable uncertainty and variability and actual experience may vary significantly by the current
estimated net OPEB liability.
The net OPEB liability reported as of June 30, 2018 was measured as of June 30, 2016 and rolled forward to June 30,
2017, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation
as of that date. The Board’s proportion of the net OPEB liability was based on the Board’s share of contributions to
the OPEB plan relative to the projected contributions of all participating entities. Following is information related to
the proportionate share as well as the OPEB expense:
Proportionate Share of the

Net OPEB – Current Year 0.030243184%
Proportionate Share of the
Net OPEB – Prior Year 0.039117547%
Change in Proportionate Share (0.008874363%)
Proportion of the Net OPEB
Liability $743,677
OPEB Expense $22,369
At June 30, 2018, the Board reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources:
Deferred Outflows of Resources

Board contributions subsequent to
the measurement date $67,083
Total $67,083
Deferred Inflows of Resources

Differences between expected and actual
economic experience $ 2,490
Net differences between expected and actual earnings
on OPEB plan investments 11,870
Changes in proportion and differences between
employer contributions and proportionate share
of contributions 173,629
Total $187,989
19
Net OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Continued)
$67,083 reported as deferred outflows of resources related to pension resulting from Board contributions subsequent
to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2019.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be
recognized in OPEB expense as follows:
Fiscal Year Ending June 30:

2019 $ 50,387
2020 50,387
2021 50,387
2022 36,828
Total $ 187,989
Actuarial assumptions
The total OPEB liability was determined by an actuarial valuation as of June 30, 2016, rolled forward to June 30,
2017, using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise
specified:
Inflation 2.75%
Salary increases Dependent upon pension system ranging from 3.00% to 6.50%,
including inflation
Investment rate of return 7.15%, net of OPEB plan investment expense, including
inflation
Healthcare cost trend rates Actual trend used for fiscal year 2017. For fiscal years on and
after 2018, trend starts at 8.50% and 9.75% for pre and post-
Medicare, respectively, and gradually decreases to an ultimate
trend of 4.50%. Excess trend rate of 0.14% and 0.29% for pre
and post-Medicare, respectively, is added to healthcare trend
rates pertaining to per capita claims costs beginning in 2020 to
account for the Excise Tax.
Actuarial cost method Entry Age Normal Cost Method
Amortization method Level percentage of payroll over a 21-year closed period
Remaining amortization period 21 years closed as of June 30, 2016
Mortality rates were based on the RP-2000 Healthy Annuitant Mortality Table projected with Scale AA on a fully
generational basis for PERS and TRS. RP-2000 Healthy Annuitant Mortality Table projected to 2025 with scale BB
for Troopers A and B. Pre-Retirement: RP-2000 Non-Annuitant Mortality Table projected with Scale AA on a fully
generational basis for PERS and TRS. RP-2000 Non-Annuitant Mortality Table projected to 2020 with Scale BB for
Troopers A and B.
The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience
study for the period July 1, 2010 - June 30, 2015.
The long-term expected rate of return of 7.15% on OPEB plan investments was determined by a combination of an
expected long-term rate of return of 7.50% for long-term assets invested with the West Virginia Investment
Management Board (WVIMB) and an expected short-term rate of return of 3.0% for assets invested with the West
Virginia Board of Treasury Investments (WVBTI). Long-term pre-funding assets are invested with the WVIMB. The
strategic asset allocation consists of 27.5% U.S. equity, 27.5% International equity, 7.5% core fixed income, 7.5%
high yield fixed income, 10% private equity, 10% hedge funds and 10% real estate invested. Short-term assets used
to pay current year benefits and expenses are invested with the WVBTI.
20
The long-term rate of return on OPEB plan investments were determined using a building block method in which
estimates of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation)
was developed for each major asset class. These ranges were combined to produce the long-term expected rate of
return by weighting the expected future real rates of return by the target asset allocation percentages and by adding
expected inflation. Best estimates of long-term geometric rates are summarized in the following table:
Long-Term Expected
Asset Class Real Rate of Return
Large Cap Domestic 17.0%

Non-Large Cap Domestic 22.0
International Qualified 24.6
International Non-Qualified 24.3
International Equity 26.2
Short-Term Fixed 0.5
Total Return Fixed Income 6.7
Core Fixed Income 0.1
Hedge Fund 5.7
Private Equity 19.6
Real Estate 8.3
Opportunistic Income 4.8
Cash 0.0
Discount rate
The discount rate used to measure the total OPEB liability was 7.15%. The projection of cash flows used to determine
the discount rate assumed that RHBT contributions would be made at rates equal to the actuarially determined
contribution rates, in accordance with prefunding and investment policies. Future pre-funding assumptions include a
$30 million annual contribution from the State through 2037. Based on those assumptions, and that the Plan is expected
to be fully funded by fiscal year ended June 30, 2036, the OPEB plan's 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 on OPEB plan investments was applied to all periods of projected benefit payments to determine the
total OPEB liability. Discount rates are subject to change between measurement dates. The discount rate used to
measure the total OPEB liability at June 30, 2016 is a 0.45% increase from the June 30, 2015 valuation.
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the RHBT, as well as what the RHBT's net OPEB liability would
be if it were calculated using a discount rate that is 1-percentage point lower (6.15%) or 1-percentage-point higher
(8.15%) than the current discount rate:
1% Decrease Discount Rate 1% Increase

(6.15%) (7.15%) (8.15%)
Net OPEB liability $ 865,926 $ 743,677 $ 642,053
21
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates.
The following presents the net OPEB liability of the Plan, as well as what the Plan's net OPEB liability would be if
it were calculated using healthcare cost trend rates that are 1-percentage-point lower or higher:
(8.5% decreasing
(7.5% decreasing to 4.5%) (9.5% decreasing
To 3.5%) Healthcare Cost To 5.5%)
1% Decrease Trend Rates 1% Increase
Net OPEB liability $ 624,699 $ 743,677 $ 889,193
Other key assumptions

The projection assumes that the capped subsidy aggregate contribution limit of $150 million for 2017 would increase
by $10 million per year on and after 2018. Additionally, the per member subsidy is projected to increase by at least
3.0% per year but no more than the healthcare trend inflation assumption such that the product of the projected
subsidy and projected members is less than the projected aggregated capped costs; and the member's share of
plan costs is expected remain stable as a percentage of total costs following the year that the program is fully
funded. After 2035, the program is projected to be fully funded and the sponsor is assumed to contribute the residual
portion of normal cost and operational expenses needed to maintain a funded ratio of 100% in future years. In
addition, after 2035, the member's share of total plan costs is assumed to remain stable at approximately 61% of
total plan costs. These assumptions produced per member annual capped subsidy increases of 3.0% per year from
2018 to 2023 and 4.5% per year after 2023.
Members hired on or after July 1, 2010, are required to pay 100% of expected cost of coverage, resulting in no
implicit or explicit employer cost. Consequently, these members are excluded from the actuarial valuation.
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM AND PLANS
Board employees participate in the West Virginia Public Employees Retirement System (PERS). This plan is a cost
sharing multiple-employer public employee retirement system created by the State of West Virginia.
All eligible full-time employees must participate. Among those employees not eligible for plan membership are
members and retirees of other state retirement systems. Employees hired before July 1, 2015 may retire with full
benefits at age 60 with a minimum of 5 years of credited service or when the member’s age plus his/her years of
service is equal to or greater than 80 provided that the employee has reached age 55. An individual with 5 or more
consecutive years of service who terminates employment prior to retirement can choose to leave contributions with
the system and will be eligible for retirement benefits at age 62. Members are entitled to a yearly retirement benefit
of 2% of their highest averaged salary over 3 consecutive years out of the last 10 years of earnings multiplied by the
years of service. Payments are made monthly to the retiree and the retiree can choose from 3 retirement options.
In accordance with Chapter 5, Article 10 of the West Virginia State Code, employees hired prior to July 1, 2015 are
required to contribute 4.5% of their annual salary to PERS with the Board contributing 11.0%. Employees hired after
July 1, 2015 are required to contribute 6.0% of their annual salary with the Municipality contributing 11.0%.
Further benefit, trend and other information regarding this plan is presented in the PERS annual financial report,
which may be obtained by writing to the Public Employees’ Retirement System, 4101 MacCorkle Avenue SE,
Charleston, WV 25304.
22
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM AND PLANS (CONTINUED)
Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
At fiscal year-end, the Board reported the following liabilities for its proportionate share of the net pension liabilities.
The net pension liabilities were measured as of June 30, 2017, and the total pension liability used to calculate the net
pension liabilities were determined by the actuarial assumptions and methods described in the appropriate section of
this note. The Board’s proportion of the net pension liabilities was based on a projection of the Board’s long-term
share of contributions to the pension plans relative to the projected contributions of all participating governments,
actuarially determined. At June 30, 2018, the Board reported the following proportions and increase/decreases from
its proportion reported as of June 30, 2017.
PERS
Amount for proportionate share of net pension liability – Current Year $477,965
Percentage for proportionate share of net pension liability-Current Year 0.110731%
Percentage for proportionate share of net pension liability-Prior Year 0.111270%
Increase/(decrease)% from prior proportion measured (0.000539%)
Pension expense for the year ended June 30, 2018 $116,559
The Board reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Deferred
Outflows Inflows
of Resources of Resources
Differences between expected and actual experience $ 42,535 $ 1,057

Differences between expected and actual earnings
on plan investments - 116,201
Changes in proportion and differences between government
contributions and proportionate share of contributions 35,875 7,477
Changes in assumptions - 24,791
Contributions subsequent to the measurement date 158,312 -
$ 236,722 $ 149,526
The amount reported as deferred outflows of resources related to pensions resulting from contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other
amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Fiscal Year Ending June 30:
2019 ($32,193)
2020 61,032
2021 (349)
2022 (99,606)
Total ($71,116)
23
NOTE 8 – EMPLOYEE RETIREMENT SYSTEM AND PLANS (CONTINUED)
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of June 30, 2017 for all plans, using the
following actuarial assumptions, applied to all periods included in the measurement.
Inflation Rate 3.00%

Salary Increases 3.00% – 6.00%
Investment Rate of Return 7.50%
Mortality rates for non-disabled participants were based on the 1983 Group Annuity Mortality Table for males and
the 1971 Group annuity Table for females, as appropriate. Mortality rates for disabled participants were based on the
1983 Group annuity Mortality Table for Males and Revenue Ruling 96-7 for Females.
The actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience
study for the period July 1, 2016 through June 30, 2017.
The long-term expected rate of return on pension plan investments were determined using a building-block method in
which best-estimate rates of expected future real rates of returns (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation. The target allocation and best estimate of arithmetic real rates of return for each
major asset class included are summarized in the following chart:
Long-term Expected Target Asset

Investment Real Rate of Return Allocation
U.S. Equity 7.0% 27.5%

International Equity 7.7% 27.5%
Core Fixed Income 2.7% 7.5%
High Yield Fixed Income 5.5% 7.5%
Real Estate 7.0% 10.0%
Private Equity 9.4% 10.0%
Hedge Funds 4.7% 10.0%
100.0%
Discount Rate
The discount rate used to measure the total pension liability was 7.5 percent for PERS. The projection of cash flows
used to determine the discount rate assumed that the plan member contributions will be made at the current
contribution rate and that the government contributions to all plans will be made at contractually required rates,
actuarially determined. Based on those assumptions, the pension plans’ fiduciary net position was projected to be
available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-
term expected rate of return on pension plan investments were applied to all periods of projected benefit payments to
determine the total pension liability. The following chart presents the sensitivity of the net pension liability to changes
in the discount rate, calculated using the discount rate as used in the actuarial evaluation, and what the net pension
liability would be if it were calculated using a discount rate that is 1 – percentage point lower or 1 – percentage point
higher than the current rate:
1% Discount 1%
Decrease Rate Increase
6.5% 7.5% 8.5%
Board’s proportionate share of the net pension
liability (asset) $1,323,217 $477,965 ($236,689)
24
NOTE 9 – RISK MANAGEMENT
The Board is exposed to various risks or loss related to torts, theft, or damage to and destruction of assets, errors and
omissions, injuries to employees, and natural disasters. The Board, pursuant to the provisions of State law, participates
in the following risk management programs administered by the State.
Public Employees Insurance Agency (PEIA):
The Board provides employees health and basic life insurance benefits through the Public Employees Insurance
Agency. PEIA was established by the State of West Virginia to provide a program of health and life insurance for
employees of State agencies, institutions of higher learning, boards of education, and component units of the State. In
addition, local governmental agencies and certain charitable and public service organizations may request to be
covered. PEIA provides a general employee benefit insurance program which includes hospital, surgical, major
medical, prescription drug and basic life and accidental death. Fund underwriting and rate setting policies are
established by the PEIA Finance Board. The cost of all coverage as determined by the Finance Board is paid by the
participants.
Coverage under these programs is limited to $1 million lifetime for health and $10,000 of life insurance coverage.
Members may purchase up to an additional $500,000 of life insurance coverage. Premiums are established by PEIA
and are paid monthly. The PEIA risk pool retains the risk for the health and prescription features of its indemnity
plan, has fully transferred the risks of coverage of the Managed Care Organization (MCO) Plan to the plan provider
and has transferred risk of life insurance coverage to a third-party insurer.
Workers Compensation Fund (WCF):
Workers Compensation coverage is provided for the Board by BrickStreet Insurance.
The WCF risk pool retains the risk related to the compensation of injured employees under the program.
Other Commercial Coverage:
The Board is exposed to various other risks of loss related to torts; theft of, or damage to and destruction of assets;
errors and omissions; injuries to employees; terrorism; natural disasters; and employee dishonesty for which the Board
purchases commercial insurance coverage.
During the year ended June 30, 2018 the Board did not reduce insurance coverage from coverage levels in place as of
June 30, 2017. No settlements have exceeded coverage levels in place during the past three years.
NOTE 10 – LONG-TERM LIABILITIES
The Board’s long-term liability requirements as of June 30, 2018 are as follows:
Balance Balance Due Within

Name/ Description 6/30/2017* Additions Deletions 6/30/2018 One Year
Compensated Absences $ 101,551 $ - $ 5,498 $ 96,053 $ -
Net Pension Liability 1,022,703 - 544,738 477,965 -
Other Post Employment Benefits 971,416 - 227,739 743,677 -
Total Long-term Liabilities $ 2,095,670 $ - $ 777,975 $ 1,317,695 $ -
*As restated for GASB 75, see Note 12 for additional information.
25
NOTE 11 – CONTINGENT LIABILITIES
The Board participates in federal grants that are subject to financial and compliance audits by grantor agencies or their
representatives. These audits could lead to a request for reimbursement to the grantor agency for expenditures
disallowed under the terms of the grant.
The Board believes that disallowed claims, if any, will not have a material effect on the financial condition of the
Board.
NOTE 12 - NEW ACCOUNTING PRINCIPLES
For the fiscal year ended June 30, 2018, the Board has implemented Governmental Accounting Standards Board
(GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,
Statement No. 82, Pension Issues-An Amendment of GASB Statements No. 67, No. 68, and No. 73, and GASB
Statement No. 85, Omnibus 2017.
GASB Statement No. 75 (GASB 75) establishes accounting and financial reporting requirements for governmental
employers who have other post-employment benefits (OPEB) plans. The implementation of GASB Statement No. 75
did have an effect on the financial statements of the Board as denoted below and certain additional disclosures have
been made in the notes to the basic financial statements.
Net position, July 1, 2017-As previously stated $4,114,818

Adjustment of Net OPEB Liability per GASB 75 196,179
Board Share of 2017 Employer Contributions 62,119
Net position, July 1, 2017-As restated $4,373,116
GASB Statement No. 82 addresses certain issues that have been raised with respect to Statements No. 67, Financial
Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and
Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and
Amendments to Certain Provisions of GASB Statements 67 and 68. GASB Statement No. 82 did not have an effect
on the financial statements of the Board.
GASB Statement No. 85 addresses a variety of topics including issues related to blending component units, goodwill,
fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits
[OPEB]). GASB Statement No. 85 did not have an effect on the financial statements of the Board.
NOTE 13 – SUBSEQUENT EVENTS
The Board has evaluated events subsequent to the date of the basic financial statements through March 27, 2019. No
events have occurred subsequent to the date of the financial statements through March 27, 2019 that would require
adjustment or disclosure in the financial statements.
26
Cabell-Huntington Board of Health Cabell County, WV
Schedule of the Board's Proportionate Share of the Net Pension Liability
West Virginia Public Employees Retirement System
Last Five Years *
2017 2016 2015 2014 2013
Total plan pension liability $6,816,742,000 $6,616,588,000 $ 6,411,960,000 $ 6,130,174,000 $ 5,911,263,000
Plan net position 6,385,097,000 5,697,470,000 5,853,556,000 5,761,109,000 4,999,633,000
Net pension liability $ 431,645,000 $ 919,118,000 $ 558,404,000 $ 369,065,000 $ 911,630,000
Board's proportion of the net pension liability 0.11073100% 0.11127000% 0.10102500% 0.10368500% 0.09928300%
Board's proportionate share of the

net pension liability $ 477,965 $ 1,022,703 $ 564,128 $ 382,664 $ 905,090
Board's covered-employee payroll $ 1,519,817 $ 1,533,289 $ 1,370,393 $ 1,388,448 $ 1,932,386
Board's proportionate share of the net

pension liability as a percentage of its
covered-employee payroll 31.40% 66.70% 41.20% 27.60% 46.80%
Plan fiduciary net position as a percentage

of the total pension liability 93.67% 86.11% 91.29% 93.98% 79.70%
* - Information for years prior to 2013 was not available.
27
Schedule of Board Contributions
West Virginia Public Employees Retirement System
Last Five Years *
2018 2017 2016 2015 2014
Contractually required contribution $ 158,312 $ 182,378 $ 206,994 $ 191,855 $ 201,325
Contributions in relation to the contractually

required contribution (158,312) (182,378) (206,994) (191,855) (201,325)
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Board covered-employee payroll $ 1,439,200 $ 1,519,817 $ 1,533,289 $ 1,370,393 $ 1,388,448
Contributions as a percentage of covered-employee payroll 11.00% 12.00% 13.50% 14.00% 14.50%
28
Schedule of the Board's Proportionate Share of the Net OPEB Liability
West Virginia Retiree Health Benefit Trust Fund
Last Two Years *
2017 2016
Total plan OPEB liability $ 3,282,900,408 $ 3,168,993,251
Plan net position 823,911,315 685,668,000
Net OPEB liability $ 2,458,989,093 $ 2,483,325,251
Board's proportion of the net OPEB liability 0.03024318% 0.03911755%
Board's proportionate share of the

net OPEB liability $ 743,677 $ 971,416
Board's covered payroll (1) N/A N/A
Board's proportionate share of the net

OPEB liability as a percentage of its
covered payroll (1) N/A N/A
Plan fiduciary net position as a percentage

of the total OPEB liability 25.10% 21.64%

(1) This is not applicable as the Board does not have payroll for these employees as they
are already retired.
29
Schedule of Board Contributions
West Virginia Retiree Health Benefit Trust Fund
Last Three Years *
2018 2017 2016
Contractually required contribution $ 67,083 $ 62,119 $ 62,127
Contributions in relation to the contractually

required contribution (67,083) (62,119) (62,127)
Contribution deficiency (excess) $ - $ - $ -
Board covered payroll (1) N/A N/A N/A
Contributions as a percentage of covered payroll (1) N/A N/A N/A

(1) This is not applicable as the Board does not have payroll for these employees as they
are already retired.
30
bhm cpa group, inc.
Report on Internal Control Over Financial Reporting and on Compliance

and Other Matters Required by Government Auditing Standards

Cabell County, West Virginia
703 7th Avenue
Huntington, West Virginia 25701
To the Board of Directors:
We have audited, in accordance with auditing standards generally accepted in the United States and the
Comptroller General of the United States’ Government Auditing Standards, the financial statements of the
governmental activities, the major fund, and the aggregate remaining fund information of the Cabell-Huntington
Board of Health, Cabell County, (the Board) as of and for the year ended June 30, 2018, and the related notes to
the financial statements, which collectively comprise the Board’s basic financial statements and have issued our
report thereon dated March 27, 2019, wherein we noted the Board adopted new accounting guidance in
Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions.
Internal Control Over Financial Reporting
As part of our financial statement audit, we considered the Board’s internal control over financial reporting
(internal control) to determine the audit procedures appropriate in the circumstances to the extent necessary to
support our opinions on the financial statements, but not to the extent necessary to opine on the effectiveness of
the Board’s internal control. Accordingly, we have not opined on it.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, when performing their assigned functions, to prevent, or detect and timely correct misstatements. A
material weakness is a deficiency, or combination of internal control deficiencies resulting in a reasonable
possibility that internal control will not prevent or detect and timely correct a material misstatement of the
Board’s financial statements. A significant deficiency is a deficiency, or combination of deficiencies, in internal
control that is less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies. Given these limitations, we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, unidentified material weaknesses or significant deficiencies may
exist.
.
PO Box • Huntington, West Virginia 25708 • (304) 521-2648
www.bhmcpagroup.com
31
Board of Directors
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Required by Government Auditing Standards
Page 2
Compliance and Other Matters
As part of reasonably assuring whether the Board’s financial statements are free of material misstatement, we
tested its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance
with which could directly and materially affect the determination of financial statement amounts. However,
opining on compliance with those provisions was not an objective of our audit and accordingly, we do not express
an opinion. The results of our tests disclosed no instances of noncompliance or other matters we must report under
Government Auditing Standards.
Purpose of this Report
This report only describes the scope of our internal control and compliance testing and our testing results, and
does not opine on the effectiveness of the Board’s internal control or on compliance. This report is an integral
part of an audit performed under Government Auditing Standards in considering the Board’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
BHM CPA Group, Inc

Huntington, West Virginia
March 27, 2019
32

Cabell Huntington BOH 2018

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RFP# 18-128

bhm cpa group, inc.

CABELL-HUNTINGTON BOARD OF HEALTH

For the Year Ended June 30, 2018

Independent Auditor’s Report ....................................................................................................................... 1

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ........................................................................................................................ 4

Fund Financial Statements:

Balance Sheet – Governmental Fund ...................................................................................................... 6

Reconciliation of Governmental Fund Balance to

Statement of Revenues, Expenditures and Changes in

Reconciliation of the Statement of Revenues, Expenditures and

Statement of Revenues, Expenditures and Changes in Fund

Statement of Fiduciary Assets and Liabilities ........................................................................................ 11

Notes to the Financial Statements .............................................................................................................. 12

Schedule of the Board’s Proportionate Share of the Net Pension Liability................................................. 27

Report on Internal Control Over Financial Reporting and on Compliance and

Independent Auditor’s Report

Cabell-Huntington Board of Health

To the Board of Directors:

Report on the Financial Statements

Management’s Responsibility for the Financial Statements

Required Supplementary Information

Other Reporting Required by Government Auditing Standards

BHM CPA Group, Inc

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 5,723,759

LIABILITIES, DEFERRED INFLOWS OF RESOURCES

Total Current Liabilities 208,457

Total Deferred Inflows of Resources 373,743

Total Liabilities and Deferred Inflows of Resources 1,899,895

Net (Expense) Revenue

Total Governmental Activities $ 3,276,453 $ 216,427 $ 324,243 (2,735,783)

Total General Revenues: 2,186,531

Change in Net Position (549,252)

Net Position - Beginning of Year - Restated, See Note 12 4,373,116

Net Position - End of Year $ 3,823,864

See Accompanying Notes.

TOTAL ASSETS $ 3,021,800

LIABILITIES, DEFERRED INFLOWS OF RESOURCES

See Accompanying Notes.

Total governmental fund balance $ 2,600,221

Capital assets used in governmental activities are not financial resources

Net Position of governmental activities $ 3,823,864

See Accompanying Notes.

Property Taxes $ 1,396,901

Total Revenues 2,713,160

Total Expenditures 3,303,000

Net Change in Fund Balance (589,840)

Fund Balance - Beginning of Year 3,190,061

Fund Balance - End of Year $ 2,600,221

See Accompanying Notes.

Net change in fund balance - governmental fund $ (589,840)

Governmental funds report capital outlays as expenditures. However in the statement

Expenses related to compensated absences reported in the statement of activities do

Contractually required contributions are reported as expenditures in governmental

Change in net position of governmental activities $ (549,252)

See Accompanying Notes.

Property Taxes $ 1,450,901 $ 1,450,901 $ 1,396,901 $ (54,000)

Total Revenues $ 2,811,707 $ 2,811,707 $ 2,713,160 $ (98,547)

Salaries $ 1,562,014 $ 1,562,014 $ 1,599,680 $ (37,666)

Total Expenditures 2,811,707 2,811,707 3,303,000 (491,293)