COUNTY OF WASHINGTON _ PENNSYLVANIA - McElwee _ Quinn

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					                                                                                                                                                                                                                                                                          PRELIMINARY OFFICIAL STATEMENT DATED MAY 10, 2012
This Preliminary Official Statement and the information contained herein are subject to completion or amendment or other change without notice. The Bonds may not be sold nor may any offer to buy be accepted prior to the
time the Preliminary Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of   NEW ISSUE                                                                                              RATINGS: See “Ratings” herein
                                                                                                                                                                                                                                          BOOK-ENTRY-ONLY
                                                                                                                                                                                                                                          Interest on the Series A Bonds is included in the gross income of the owners of the Series A Bonds for federal income tax purposes. Bond
                                                                                                                                                                                                                                          Counsel will express no opinion on the federal income tax treatment of the Series A Bonds.
                                                                                                                                                                                                                                          In the opinion of Bond Counsel, assuming compliance with certain covenants of the County, interest on the Series B Bonds is excluded from gross
                                                                                                                                                                                                                                          income of the owners of the Series B Bonds for federal income tax purposes under existing law, as currently enacted and construed. Interest on
                                                                                                                                                                                                                                          the Series B Bonds is not an item of tax preference for purposes of either individual or corporate alternative minimum tax. Interest on the Series
                                                                                                                                                                                                                                          B Bonds may be indirectly subject to corporate alternative minimum tax and certain other taxes imposed on certain corporations as more fully
                                                                                                                                                                                                                                          described under the caption ‘TAX MATTERS – FEDERAL – Series B Bonds” herein.
                                                                                                                                                                                                                                          Under the laws of the Commonwealth of Pennsylvania, as currently enacted and construed, the Bonds are exempt from personal property taxes in
                                                                                                                                                                                                                                          Pennsylvania, and the interest on the Bonds is exempt from Pennsylvania personal income tax and Pennsylvania corporate net income tax.
the Bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction.




                                                                                                                                                                                                                                                                                                        $22,000,000*
                                                                                                                                                                                                                                                                                     COUNTY OF WASHINGTON
                                                                                                                                                                                                                                                                                       (Commonwealth of Pennsylvania)
                                                                                                                                                                                                                                                             $4,500,000 General Obligation Bonds, Federally Taxable Series A of 2012
                                                                                                                                                                                                                                                                      $17,500,000 General Obligation Bonds, Series B of 2012
                                                                                                                                                                                                                                          Dated: Date of Delivery of the Bonds                                                             Interest Payable: March 1 and September 1
                                                                                                                                                                                                                                          Due: September 1 (as shown on the inside front cover)                                             First Interest Payment: September 1, 2012
                                                                                                                                                                                                                                          The County of Washington, Pennsylvania (the “County”) will issue its General Obligation Bonds, Federally Taxable Series A of 2012 (the
                                                                                                                                                                                                                                          “Series A Bonds”) and its General Obligation Bonds, Series B of 2012 (the “Series B Bonds”), collectively hereinafter referred to as the “Bonds”
                                                                                                                                                                                                                                          as fully registered Bonds in the denomination of $5,000 and integral multiples thereof. The Bonds will mature as shown on the inside cover
                                                                                                                                                                                                                                          hereof. The principal of the Bonds will be paid to the registered owners thereof or assigns, when due, upon surrender of the Bonds at the
                                                                                                                                                                                                                                          designated corporate trust office of Wells Fargo Bank, N.A., Philadelphia, Pennsylvania, as paying agent (the “Paying Agent”). The Bonds will
                                                                                                                                                                                                                                          be registered in the name of Cede & Co. as the registered owner and nominee of The Depository Trust Company, New York, New York
                                                                                                                                                                                                                                          (“DTC”). Beneficial ownership of the Bonds may be acquired in denominations of $5,000 and integral multiples thereof only under the book-
                                                                                                                                                                                                                                          entry only system maintained by DTC through its brokers and dealers who are or act through DTC Participants. The purchasers of the Bonds will
                                                                                                                                                                                                                                          not receive physical delivery of the Bonds. For so long as any purchaser is the beneficial owner of a Bond, that purchaser must maintain an
                                                                                                                                                                                                                                          account with a broker or a dealer who is, or acts through, a DTC Participant to receive payment of principal of and interest on the Bonds. See
                                                                                                                                                                                                                                          “BOOK-ENTRY ONLY SYSTEM” herein. If under the circumstances described herein, Bonds are ever issued in certificate form, the Bonds
                                                                                                                                                                                                                                          will be subject to registration of transfer, exchange and payment as described herein.
                                                                                                                                                                                                                                          The Bonds are subject to optional and mandatory redemption prior to maturity as described herein.
                                                                                                                                                                                                                                          So long as Cede & Co., as nominee for DTC, is the registered owner of the Bonds, payments of the principal of, redemption premium, if any, and
                                                                                                                                                                                                                                          interest on the Bonds, when due for payment, will be made directly to DTC by the Paying Agent and DTC will in turn remit such payments to
                                                                                                                                                                                                                                          DTC Participants for subsequent disbursement to the Beneficial Owners of the Bonds. If the use of the Book-Entry Only system for the Bonds is
                                                                                                                                                                                                                                          ever discontinued, the principal of and redemption premium, if any, on each of the Bonds will be payable, when due, upon surrender of such
                                                                                                                                                                                                                                          Bond to the Paying Agent at its designated corporate trust office located presently in Minneapolis, Minnesota (or any successor paying agent at
                                                                                                                                                                                                                                          its designated office(s) and interest on such Bond will be payable by check and mailed to the person(s) in whose name(s) such Bond is registered
                                                                                                                                                                                                                                          as of the Record Date with respect to the particular interest payment date (See “THE BONDS”).
                                                                                                                                                                                                                                          In the Ordinance enacted by the Commissioners of the County of Washington, Pennsylvania (the “County”) on May 17, 2012, authorizing the
                                                                                                                                                                                                                                          issuance of the Bonds (the “Ordinance”), the County has covenanted with the registered owners of the Bonds that it will include the amount of
                                                                                                                                                                                                                                          the debt service to be paid on the Bonds for each fiscal year in which such sums are payable in its budget for that year and will appropriate such
                                                                                                                                                                                                                                          amounts to the payment of such debt service; and shall duly and punctually pay or cause to be paid from the Sinking Fund (hereinafter defined),
                                                                                                                                                                                                                                          or other revenues or funds of the County, the principal of, and interest on the Bonds on the dates, at the place and in the manner stated in the
                                                                                                                                                                                                                                          Bonds, according to the true intent and meaning thereof; and for such budgeting, appropriation and payment the County pledges its full faith,
                                                                                                                                                                                                                                          credit and taxing power. As provided in the Local Government Unit Debt Act of the Commonwealth of Pennsylvania, 53 Pa. C.S.A. §8001 et
                                                                                                                                                                                                                                          seq. (the “Act”), the foregoing covenant shall be specifically enforceable.
                                                                                                                                                                                                                                          THE BONDS ARE GENERAL OBLIGATIONS OF THE COUNTY OF WASHINGTON, PENNSYLVANIA (“WASHINGTON COUNTY”
                                                                                                                                                                                                                                          OR THE “COUNTY”), SECURED BY THE FULL FAITH, CREDIT AND TAXING POWER OF THE COUNTY. THE COUNTY HAS
                                                                                                                                                                                                                                          COVENANTED TO PAY, AS AND WHEN DUE, THE PRINCIPAL OF, ACCRETED VALUE OF AND INTEREST ON THE BONDS, TO
                                                                                                                                                                                                                                          INCLUDE IN ITS ANNUAL BUDGET SUCH AMOUNT AS DUE, AND TO APPROPRIATE SUCH AMOUNTS FOR SUCH PAYMENT.
                                                                                                                                                                                                                                          The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under an insurance policy to be issued concurrently
                                                                                                                                                                                                                                          with the delivery of the Bonds by ____________________. See “BOND INSURANCE” herein



                                                                                                                                                                                                                                          This cover page contains information for quick reference only and does not constitute a summary of this issue. Investors must read the entire
                                                                                                                                                                                                                                          Official Statement to obtain all information that will be necessary to make a fully-informed investment decision.

                                                                                                                                                                                                                                          The Bonds are offered for delivery when, as and if issued by the County and received by the Underwriter and subject to the approving legal
                                                                                                                                                                                                                                          opinion of Pepper Hamilton LLP, Pittsburgh, Pennsylvania, Bond Counsel and DiCarlo & Associates, Washington, Pennsylvania, Co-Bond
                                                                                                                                                                                                                                          Counsel. Certain legal matters will be passed upon by J. Lynn DeHaven, Washington, Pennsylvania, Solicitor for the County. It is expected that
                                                                                                                                                                                                                                          the Bonds in definitive form will be available for delivery in New York, New York on or about June 20, 2012.


                                                                                                                                                                                                                                                                             BOENNING & SCATTERGOOD, INC.
                                                                                                                                                                                                                                          ________________________
                                                                                                                                                                                                                                          *Preliminary, subject to change
                                                                                                                                                                                                                                          Official Statement Dated May ___, 2012
                                              $22,000,000*
                                      COUNTY OF WASHINGTON
                                    (Commonwealth of Pennsylvania)
                 $4,500,000 General Obligation Bonds, Federally Taxable Series A of 2012
                          $17,500,000 General Obligation Bonds, Series B of 2012

        MATURITIES, PRINCIPAL AMOUNTS, INTEREST RATES AND PRICES/YIELDS

Dated: Date of Delivery of the Bonds                                              Due: September 1, as shown below
                                                    SERIES A BONDS
                             Principal
         Year                Amount              Interest Rate           Yield               Price             CUSIP **
                                    $




                                                    SERIES B BONDS
                             Principal
         Year                Amount              Interest Rate           Yield               Price             CUSIP **
                                    $




________________________
*Preliminary, subject to change
**The above CUSIP (Committee on Uniform Securities Identification Procedures) numbers have been assigned by an
organization not affiliated with the County and the County is not responsible for the selection or use of the CUSIP numbers. The
CUSIP numbers are included solely for the convenience of bondholders and no representation is made as to the correctness of
such CUSIP numbers. CUSIP numbers assigned to securities may be changed during the term of such securities based on a
number of factors including, but not limited to, the refunding or defeasance of such issue or the use of secondary market financial
products. The County has not agreed to, and there is no duty or obligation to, update this Official Statement to reflect any change
or correction in the CUSIP numbers set forth above.
           This Official Statement does not constitute an offer to sell or a solicitation of an offer to buy the Bonds in any
jurisdiction to any person to whom it is unlawful to make such offer in such jurisdiction. No dealer, sales representative or
any other person has been authorized by the County or the Underwriter to give any information or to make any representation,
other than those contained herein, in connection with the offering of or solicitation for the Bonds, and if given or made, such
information or representation must not be relied upon.

          The information set forth herein has been obtained from the County and other sources which are believed to be
reliable but it is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation of, the
Underwriter. When the Constitution and statutes of the Commonwealth of Pennsylvania or other documents are referred
to, reference should be made to such Constitution, statutes or documents for complete statements of the matters referred to.
The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this
Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been
no change in any of the information set forth herein since the date herein, or the date as of which particular information is
given, if earlier. This Official Statement is not to be construed as a contract or agreement between the County and the
purchasers or owners, from time to time, of any of the Bonds.

          _____________ (“___”) makes no representation regarding the Bonds or the advisability of investing in the
Bonds. In addition, ____ has not independently verified, makes no representation regarding, and does not accept any
responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained
herein, or omitted herefrom, other than with respect to the accuracy of the information regarding ___ supplied by ___ and
presented under the heading “Bond Insurance” and “Appendix D - Specimen Municipal Bond Insurance Policy”.

        The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing the Bonds into
investment trusts) and others at prices lower than the public offering stated on the cover page hereof.

     IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVER-ALLOT OR EFFECT
TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL
ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF
COMMENCED, MAY BE DISCONTINUED AT ANY TIME WITHOUT NOTICE.

          If and when included in this Official Statement, the words "expects," "forecasts," "projects," "intends,"
"anticipates," "estimates," "assumes" and analogous expressions are intended to identify forward-looking statements and
any such statements inherently are subject to a variety of risks and uncertainties that could cause actual results to differ
materially from those that have been projected. Such risks and uncertainties which could affect the revenues and
obligations of the County include, among others, changes in economic conditions, mandates from other governments and
various other events, conditions and circumstances, many of which are beyond the control of the County. Such forward-
looking statements speak only as of the date of this Official Statement. The County disclaims any obligation or
undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any
changes in the County's expectations with regard thereto or any change in events, conditions or circumstances on which
any such statement is based.


                               __________________________________________________
                                                              TABLE OF CONTENTS
Introduction .......................................................................................................................................................1
Purpose of the Issue ..........................................................................................................................................1
    The Series A Bonds.....................................................................................................................................1
    The Series B Bonds .....................................................................................................................................1
Plan of Financing ..............................................................................................................................................2
    Swap Termination .......................................................................................................................................2
    The 1992 Refunding....................................................................................................................................2
    The 2002A Refunding.................................................................................................................................2
    The 2012 Capital Projects ...........................................................................................................................2
Security for the Bonds.......................................................................................................................................2
    Sinking Fund ...............................................................................................................................................3
    Actions in the Event of Default ..................................................................................................................3
Bond Insurance .................................................................................................................................................3
Bond Insurance Risk Factors ............................................................................................................................3
Description of the Bonds ..................................................................................................................................4
    General Description ....................................................................................................................................4
Book-Entry-Only System .................................................................................................................................5
    Disclaimer of Liability for Failures of DTC...............................................................................................6
    Discontinuation of Book Entry Only System .............................................................................................7
Redemption Provisions .....................................................................................................................................7
    Optional Redemption ..................................................................................................................................7
    Mandatory Redemption ..............................................................................................................................7
    Notice of Redemption .................................................................................................................................7
Sources and Uses of Funds ...............................................................................................................................8
Debt Service Schedule Federally Taxable Series A Bonds .............................................................................9
Debt Service Schedule Series B Bonds ......................................................................................................... 10
Net Debt Service on Outstanding County Issues .......................................................................................... 11
County Financial History ............................................................................................................................... 12
Future Financing ............................................................................................................................................ 12
Tax Matters - Federal ..................................................................................................................................... 12
    Series A Bonds ......................................................................................................................................... 12
    Series B Bonds ......................................................................................................................................... 12
    Original Issue Discount............................................................................................................................ 12
Tax Matters – Commonwealth of Pennsylvania ........................................................................................... 13
Negotiability of Bonds ................................................................................................................................... 13
Legal Opinions ............................................................................................................................................... 13
Continuing Disclosure Undertaking .............................................................................................................. 13
    Continuing Compliance ........................................................................................................................... 15
Financial Consultant ...................................................................................................................................... 15
Ratings ............................................................................................................................................................ 15
Underwriting .................................................................................................................................................. 15
Certification of Official Statement ................................................................................................................ 16
Verification of Mathematical Accuracy ........................................................................................................ 16
Miscellaneous................................................................................................................................................. 16
    No Litigation ............................................................................................................................................ 16
    Remedies .................................................................................................................................................. 16
    Other ......................................................................................................................................................... 17

Appendix A – Demographic and Economic Information of the County .................................................. A-1
Appendix B – County’s Annual Financial Report for the Year Ended December 31, 2010 ..................B-1
Appendix C – Form of Bond Counsel’s Opinion ..................................................................................C-1
Appendix D – Specimen Municipal Bond Insurance Policy ................................................................. D-1
                        COUNTY OF WASHINGTON
                  COMMONWEALTH OF PENNSYLVANIA
                                  Courthouse Square
                             100 West Beau Street, Suite 703
                                 Washington, PA 15301


                   BOARD OF COUNTY COMMISSIONERS

 Lawrence O. Maggi ........................................................................Chairman
 Diana Irey Vaughan. ............................................................... Commissioner
 Harlan G. Shober, JR. .............................................................. Commissioner


                            COUNTY ADMINISTRATION

Mary Helicke ............................................................................. Chief Clerk
Francis L. King.................................................................................. Treasurer
Michael L. Namie ............................................................................ Controller
Scott Fergus ........................................................... Director of Administration
Roger Metcalfe .................................................................. Director of Finance

                                          SOLICITOR
                                  J. Lynn DeHaven, Esquire
                                  Washington, Pennsylvania

                                      BOND COUNSEL
                                    Pepper Hamilton LLP
                                   Pittsburgh, Pennsylvania

                                   CO-BOND COUNSEL
                                   DiCarlo & Associates
                                  Washington, Pennsylvania

                                       PAYING AGENT
                                  Wells Fargo Bank, N.A.
                                 Philadelphia, Pennsylvania

                              FINANCIAL CONSULTANT
                                    VALCO Capital, Ltd.
                                    Ligonier, Pennsylvania

                                       UNDERWRITER
                               Boenning & Scattergood, Inc.
                                 Pittsburgh, Pennsylvania
[THIS PAGE INTENTIONALLY LEFT BLANK]
                                           OFFICIAL STATEMENT

                                            $22,000,000*
                                      COUNTY OF WASHINGTON
                                     (Commonwealth of Pennsylvania)
                $4,500,000* General Obligation Bonds, Federally Taxable Series A of 2012
                         $17,500,000* General Obligation Bonds, Series B of 2012

                                                 INTRODUCTION

         This Official Statement is furnished by the County of Washington, Commonwealth of Pennsylvania (the
“County”), in connection with the offering of its General Obligation Bonds, Federally Taxable Series A of 2012 in the
aggregate principal amount of $4,500,000* (the “Series A Bonds”) and its General Obligation Bonds, Series B of 2012
in the aggregate principal amount of $17,500,000* (the “Series B Bonds”) (the Series A Bonds and the Series B Bonds
are hereinafter collectively referred to as “the Bonds.”) The Bonds will bear interest at the rates listed on the inside
front cover page hereof from the date of delivery, payable semiannually on March 1 and September 1 of each year,
commencing September 1, 2012.

         The Bonds are being issued pursuant to an Ordinance of the Board of County Commissioners of the County,
enacted May 17, 2012 (the “Ordinance”), and in accordance with the Local Government Unit Debt Act, 53 Pa.C.S.
Chs. 80-82 (the “Act”) of the Commonwealth of Pennsylvania (the “Commonwealth”).

         The Bonds shall be issued in fully registered form, without coupons, in denominations of $5,000 or any
integral multiple thereof and will be dated the date of delivery. Principal of the Bonds will be paid at the designated
office of Wells Fargo Bank, N.A. as Paying Agent in Minneapolis, Minnesota. So long as DTC or its nominee,
Cede & Co., is the registered owner of the Bonds, such payments will be made directly to it as registered owner.
Disbursement of such payments to the DTC Participants is the responsibility of DTC and disbursement of such
payments to the Beneficial Owners is the responsibility of the DTC Participants and the Indirect Participants, as
more fully described herein.

          The information which follows contains summaries of the Ordinance, relevant provisions of Commonwealth
and Federal law, the County’s budget and the County’s financial statements. Such summaries do not purport to be
complete and reference is made to the Ordinance, the County’s budget and the County’s financial statements, copies of
which are on file and available for examination at the offices of the County. Reference is also made to the Bonds and
to the actual cited laws and regulations.

                                            PURPOSE OF THE ISSUE

The Series A Bonds

         The proceeds of the Series A Bonds, together with other available funds of the County, will provide funds
for: (1) funding termination of a swap related to the County’s General Obligation Bonds, Series of 2002 (see
“PLAN OF FINANCING – Swap Termination”); and (b) paying the costs and expenses of issuing the Series A
Bonds.

The Series B Bonds

         The proceeds of the Series B Bonds will provide funds for: (1) advance refunding a portion of the
Washington County Authority’s Guaranteed Lease Revenue Bonds, Series of 1992 (Capital Appreciation Bonds)
(See “PLAN OF FINANCING – the 1992 Refunding”); (2) currently refunding the County’s General Obligation
Bonds, Series of 2002A (See “PLAN OF FINANCING – The 2002A Refunding”); (3) funding various capital
projects of the County; (See “PLAN OF FINANCING – The 2012 Capital Projects”); and (4) paying the costs and
expenses of issuing the Series B Bonds.




______________________
*Preliminary, subject to change
                                                          -1-
                                               PLAN OF FINANCING

Swap Termination

         In May, 2005 the County entered into a swaption contract as a synthetic refunding of its 2002 General
Obligation Bonds, which contract was amended effective September 21, 2006 and again amended effective May 16,
2007. During 2007, the County paid a swap termination fee in order to terminate a portion of the swap in
conjunction with issuance of its Series of 2007 General Obligation Bonds. The proceeds of the Series A Bonds will
be used to pay a swap termination fee to terminate the remaining portion of the swap related to the County’s 2002
General Obligation Bonds.

The 1992 Refunding

         The 1992 Refunding consists of the advance refunding of $4,600,000 aggregate maturity value ($1.1
million aggregate initial value) of the Washington County Authority’s Guaranteed Lease Revenue Bonds, Series of
1992 (the “1992 Bonds”), consisting of:
            1.    $1,345,000* maturity value of the Bonds maturing on September 1, 2012.
            2.    $1,345,000* maturity value of the Bonds maturing on September 1, 2013.
            3.    $1,390,000* maturity value of the Bonds maturing on September 1, 2014.
            4.    $515,000* maturity value of the Bonds maturing on September 1, 2015.

Collectively, the 1992 Bonds indicated in 1-4 above are hereinafter referred to as the “1992 Refunded Bonds”.
Upon issuance of the Series B Bonds, a portion of the proceeds of the Bonds will be irrevocably deposited with The
Bank of New York Mellon Trust Company, N.A., Pittsburgh, Pennsylvania, (“BONY”) as Trustee for the 1992
Bonds, pursuant to an Escrow Deposit Agreement (the “Escrow Agreement”) between the County and BONY (the
“Escrow Agent”). The amount deposited pursuant to the Escrow Agreement will be invested in U.S. Government
Obligations (the “Escrow Obligations”) and will provide sufficient funds to pay at maturity, the accreted maturity
value of the 1992 Refunded Bonds. See “VERIFICATION OF MATHEMATICAL ACCURACY” herein.
_________________
*Estimated, subject to change

The 2002A Refunding

         The 2002A Refunding consists of the current refunding of $11,780,000 aggregate principal amount of the
County of Washington General Obligation Bonds, Series of 2002A (the “2002A Bonds”), maturing September 1,
2012 through and including September 1, 2027 (the “2002A Refunded Bonds”). Upon issuance of the Series B
Bonds, a portion of the proceeds of the Bonds will be irrevocably deposited with BONY, as paying agent for the
2002A Bonds, pursuant to an Escrow Deposit Agreement (the “Escrow Agreement”) between the County and
BONY, as Escrow Agent (the “Escrow Agent”). The amount deposited pursuant to the Escrow Agreement will be
invested in U.S. Government Obligations (the “Escrow Obligations”) and will provide sufficient funds to pay when
due the interest and principal on the 2002A Refunded Bonds to and including September 1, 2012 and to redeem by
optional redemption on September 1, 2012 at a redemption price of 100%, the outstanding 2002A Refunded Bonds.

The 2012 Capital Projects

        A portion of the proceeds of the Series B Bonds will provide funds for the following capital projects of the
County: (a) renovations and upgrading the County’s parking garage at the County correctional facility; (b)
purchase of equipment and IT project development, to include implementation of World CAMA and Tax system at
the County’s airport; (c) various renovations and restoration of the County Courthouse..


                                           SECURITY FOR THE BONDS

         The Bonds are general obligations of the County and are payable from the general taxes and revenues of the
County. The taxing powers of the County are described more fully herein in Appendix A. The County has covenanted
in the Ordinance that it (i) shall include the amount of the debt service to be paid on the Bonds, for each fiscal year of
the County in which such sums are payable, in its budget for that fiscal year, (ii) shall appropriate such amounts from
its general revenues for the payment of such debt service, and (iii) shall duly and punctually pay, or cause to be paid,


                                                           -2-
from its Sinking Fund (hereinafter defined) or any other of its revenues or funds, the principal or accreted value of each
of the Bonds and the interest thereon on the dates, at the place and in the manner stated in the Bonds. For such
budgeting, appropriation and payment, the County has irrevocably pledged its full faith, credit and taxing power.

Sinking Fund

          In the Ordinance, the County establishes a “Sinking Fund-General Obligation Bonds, Series A of 2012
(Taxable)” and “Sinking Fund-General Obligation Bonds, Series B of 2012”, (collectively, the “Sinking Fund”), which
shall be created and maintained with the Paying Agent as the sinking fund depository. The Sinking Fund is segregated
from all other funds of the County. The County shall deposit in the Sinking Fund a sufficient sum no later than the date
when principal or interest is to become due on the Bonds so that on each payment date the Sinking Fund will contain an
amount which, together with any other available funds therein, is sufficient to pay in full interest and principal then due
on the Bonds.

         The Sinking Fund shall be held by the Paying Agent, as sinking fund depository, and invested by the Paying
Agent in such securities or shall be deposited in such funds or accounts as are authorized by the Act, upon direction of
the County. Such deposits and securities shall be in the name of the County, but subject to withdrawal or collection
only by the Paying Agent, and such deposits and securities, together with the interest thereon, shall be a part of the
Sinking Fund.

          The Paying Agent is authorized without further order from the County to pay from the Sinking Fund the
principal of and interest on the Bonds when due and payable.

Actions in the Event of Default

          Subject to the exclusive representation of Bondholders by a trustee appointed under the Act as described in the
following paragraph, if the County fails or neglects to pay principal or interest on any of the Bonds as it becomes due
and payable, and such failure continues for thirty days, the holder of such Bond may bring suit in a court of appropriate
jurisdiction and venue and any judgment recovered shall have an appropriate priority upon the money next coming into
the treasury of the County, all as provided in the Act. The Act also provides other remedies to Bondholders to enforce
the County’s covenants in respect of payment of the Bonds.

         In the event the County defaults in the payment of the principal of, accreted value of or the interest on any
of the Bonds after the same shall become due, whether at the stated maturity or upon call for prior redemption, and
such default shall continue for thirty days, or if the County fails to comply with any provision of the Bonds or the
Ordinance, the Act provides that the holders of 25% in aggregate principal amount of the Bonds then outstanding
may, by appropriate action, appoint a trustee to represent the Bondholders. The trustee may, and upon written
request of the holders of 25% in principal amount of the Bonds then outstanding, and upon being provided with
indemnity satisfactory to it, shall take such action on behalf of the Bondholders as is more specifically set forth in
the Act. Such representation by the trustee shall be exclusive.

                                                 BOND INSURANCE

                                                     [Applied For]

                                       BOND INSURANCE RISK FACTORS

         The County has received a commitment for a bond insurance policy to guarantee the scheduled payment of
principal and interest on the Bonds. The following are risk factors relating to bond insurance.

         In the event of default in the payment of principal or interest with respect to the Bonds when all or some
becomes due, any owner of the Bonds shall have a claim under the applicable bond insurance policy (the “Policy")
for payment of such amount in default. However, if the date for payment of such principal or interest was advanced
by reason of mandatory or optional redemption of Bonds (or any portion thereof) or an acceleration of Bonds (or any
portion thereof) resulting from default or otherwise, other than an advancement of maturity pursuant to a mandatory
sinking fund redemption, payments under the Policy are to be made in such amounts and at such times as the
defaulted principal or interest would have been due had there not been any such advancement. The Policy does not
insure the payment of any redemption premium. Any payment of principal and interest in connection with a


                                                           -3-
mandatory or optional redemption of the Bonds which is recovered from the bond owner as a voidable preference
under applicable bankruptcy law is covered by the Policy, however, the issuer or obligor under the Policy (the
“Bond Insurer”) is not obligated to make payment of the amounts so recovered except at such times and in such
amounts as the recovered principal and interest would have been due absent such redemption.

          In the event the Bond Insurer becomes obligated to make payments with respect to the Bonds, no assurance
is given that such event will not adversely affect the market price of the Bonds or the marketability (liquidity) of the
Bonds.

         The long-term rating on the Bonds is dependent, in part, on the financial strength of the Bond Insurer and
its claims paying ability. The Bond Insurer’s financial strength and claims paying ability are predicated upon a
number of factors which could change over time. No assurance is given that the long-term rating of the Bond
Insurer and the rating on the Bonds insured by the Bond Insurer will not be subject to downgrade or withdrawal, and
such event could adversely affect the market price of the Bonds or the marketability (liquidity) of the Bonds. See
“RATINGS” herein.

        The obligations of the Bond Insurer under the Policy are general obligations of the Bond Insurer, and in an
event of default by the Bond Insurer the remedies available to the Bondholders may be limited by applicable
bankruptcy law or other similar laws related to insolvency.

         Neither the County nor the Financial Consultant nor the Underwriter has made any independent
investigation into the claims paying ability of the Bond Insurer, and no assurance or representation regarding the
financial strength or projected financial strength of the Bond Insurer is given.

                                         DESCRIPTION OF THE BONDS

General Description

          The Bonds will be issued in fully registered form, without coupons, in $5,000 denominations or integral
multiples thereof. They will mature on the dates set forth on the inside front cover page hereof. The Bonds will be
dated the Date of Delivery. The Bonds will bear interest at the rates set forth inside the front cover page hereof
payable on March 1 and September 1 (each an “Interest Payment Date”), commencing September 1, 2012, and are
issuable in denominations of $5,000 or any whole multiple thereof. The Bonds mature on the dates and in the
amounts set forth on the inside front cover page hereof. Each Bond shall be dated as of the date of its authentication
and shall bear interest (computed on the basis of a 360 day year comprised of twelve months of 30 days) from the
Interest Payment Date next preceding the date of authentication of such Bond, unless: (a) such Bond is
authenticated as of an Interest Payment Date, in which event such Bond shall bear interest from said Interest
Payment Date; or (b) such Bond is authenticated prior to September 1, 2012, in which event such Bond shall bear
interest from Date of Delivery; or (c) such Bond is authenticated after the fifteenth (15th) day of the month next
preceding each interest payment date (the “Record Date”) and before the next succeeding Interest Payment Date, in
which event such Bond shall bear interest from the next succeeding Interest Payment Date; or (d) as shown by the
records of the Paying Agent, interest on such Bond shall be in default, in which event such Bond shall bear interest
from the date on which interest was last paid on such Bond.

         The Bonds will be issued in fully registered form and, when issued, will be registered in the name of Cede
& Co., as registered owner and nominee of The Depository Trust Company (“DTC”). Purchases of the Bonds will
be made in book-entry only form, in denominations of $5,000 or any integral multiple thereof. Beneficial Owners
will not receive certificates representing their interest in the Bonds purchased. So long as Cede & Co. is the
registered owner, as nominee of DTC, references herein to the registered owners shall mean Cede & Co., as
aforesaid, and shall not mean the Beneficial Owners of the Bonds. See “Book-Entry Only System” below.

         Principal and interest on the Bonds will be paid by Wells Fargo Bank, N.A., as Paying Agent. So long as
DTC or its nominee, Cede & Co., is the registered owner of the Bonds, such payments will be made directly to it as
registered owner. Disbursement of such payments to the DTC Participants is the responsibility of DTC and
disbursement of such payments to the Beneficial Owners is the responsibility of the DTC Participants and the
Indirect Participants, as more fully described herein.




                                                          -4-
                                         BOOK-ENTRY ONLY SYSTEM

         The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds.
The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership
nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered
Bond will be issued for each maturity of the Bonds, in the aggregate principal amount of such maturity, and will be
deposited with DTC. SO LONG AS CEDE & CO. IS THE REGISTERED OWNER OF THE BONDS, AS
NOMINEE OF DTC, REFERENCES HEREIN TO THE BONDHOLDERS, BONDOWNERS OR REGISTERED
OWNERS OF THE BONDS SHALL MEAN CEDE & CO. AND SHALL NOT MEAN THE BENEFICIAL
OWNERS OF THE BONDS.

          DTC, the world’s largest depository, is a limited-purpose trust company organized under the New York
Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments from over 100 countries that DTC’s participants (“Direct
Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges
between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC, is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard &
Poor’s rating of “AA+.” The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.

          Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond
(“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will
not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership
interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on
behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests
in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.
         To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the
name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized
representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other
DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial
Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds
are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of their customers.
         Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Bond documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding
the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices
be provided directly to them.




                                                          -5-
       Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed,
DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
         Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds
unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures,
DTC mails an Omnibus Proxy to the County as soon as possible after the record date. The Omnibus Proxy assigns
Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
          Payments of principal of and interest on the Bonds and, if applicable, redemption premium, will be made to
Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to
credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the County
or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments
by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as if the case
with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the
responsibility of such Participant and not of DTC, the Paying Agent, or the County, subject to any statutory or
regulatory requirements as may be in effect from time to time. Payment of the principal of and interest on the Bonds
and, if applicable, redemption premium to Cede & Co. (or such other nominee as may be requested by an authorized
representative of DTC) is the responsibility of the County or the Paying Agent, disbursement of such payments to
Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will
be the responsibility of Direct and Indirect Participants.
         DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to the County or the Paying Agent. Under such circumstances, in the event that a successor
depository is not obtained, Bond certificates are required to be printed and delivered.
        The County may decide to discontinue use of the system of book-entry transfers through DTC (or a
successor securities depository). In that event, Bond certificates will be printed and delivered.
         The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the County believes to be reliable, but the County takes no responsibility for the accuracy thereof.
Disclaimer of Liability for Failures of DTC

    THE COUNTY, THE FINANCIAL CONSULTANT AND THE PAYING AGENT CANNOT AND DO NOT
GIVE ANY ASSURANCES THAT DTC, THE DTC PARTICIPANTS OR THE INDIRECT PARTICIPANTS
WILL DISTRIBUTE TO THE BENEFICIAL OWNERS OF THE BONDS (I) PAYMENTS OF PRINCIPAL OR
REDEMPTION PRICE OF OR INTEREST ON THE BONDS, (II) CERTIFICATES REPRESENTING AN
OWNERSHIP INTEREST OR OTHER CONFIRMATION OF BENEFICIAL OWNERSHIP INTERESTS IN
BONDS, OR (III) REDEMPTION OR OTHER NOTICES SENT TO DTC OR CEDE & CO., ITS NOMINEE, AS
THE REGISTERED OWNER OF THE BONDS, OR THAT THEY WILL DO SO ON A TIMELY BASIS OR
THAT DTC, DTC PARTICIPANTS OR INDIRECT PARTICIPANTS WILL SERVE AND ACT IN THE
MANNER DESCRIBED IN THIS OFFICIAL STATEMENT. THE CURRENT "RULES" APPLICABLE TO
DTC ARE ON FILE WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE CURRENT
"PROCEDURES" OF DTC TO BE FOLLOWED IN DEALING WITH DTC PARTICIPANTS ARE ON FILE
WITH DTC.

    NEITHER THE COUNTY, THE FINANCIAL CONSULTANT NOR THE PAYING AGENT WILL HAVE
ANY RESPONSIBILITY OR OBLIGATION TO ANY DTC PARTICIPANT, INDIRECT PARTICIPANT OR
BENEFICIAL OWNER OR ANY OTHER PERSON WITH RESPECT TO: (1) THE BONDS; (2) THE
ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DTC PARTICIPANT OR INDIRECT
PARTICIPANT; (3) THE PAYMENT BY DTC OR ANY DTC PARTICIPANT OR INDIRECT PARTICIPANT
OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL OR
REDEMPTION PRICE OF OR INTEREST ON THE BONDS; (4) THE DELIVERY BY DTC OR ANY DTC
PARTICIPANT OR INDIRECT PARTICIPANT OF ANY NOTICE TO ANY BENEFICIAL OWNER WHICH IS
REQUIRED OR PERMITTED UNDER THE TERMS OF THE ORDINANCE TO BE GIVEN TO
BONDHOLDERS; (5) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE
EVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (6) ANY OTHER ACTION TAKEN BY DTC
AS BONDHOLDER.



                                                         -6-
         So long as Cede & Co. is the registered owner of the Bonds, as nominee of DTC, references herein to the
bondholders or registered owners of the Bonds (other than under the caption “TAX EXEMPTION AND OTHER
TAX MATTERS”) shall mean Cede & Co. and shall not mean the beneficial owners of the Bonds. Payments made
by the Paying Agent to DTC or its nominee shall satisfy the County’s obligations with respect to the Bonds to the
extent of such payments.

Discontinuation of Book-Entry Only System

         DTC may determine to discontinue providing its service with respect to the Bonds at any time by giving
notice to the County and the Paying Agent and discharging its responsibilities with respect thereto under applicable
law. Upon the giving of such notice, the book-entry only system for the Bonds will be discontinued unless a
successor securities depository is appointed by the County.

         If the County and the Paying Agent concur that it would be in the best interests of the Holders of the Bonds
for the book-entry only system to be discontinued (in whole or in part), such book-entry only system shall be
discontinued (in whole or in part) in accordance with the provisions of the applicable procedures of DTC.

                                           REDEMPTION PROVISIONS

Optional Redemption

         The Bonds stated to mature on or after September 1,____, are subject to redemption prior to maturity at a
redemption price of 100% of the principal amount thereof, at the option of the County, in whole or in part, in such
order of maturities selected by the County, on ____________, or on any date thereafter, upon payment of the principal
amount to be redeemed, together with accrued interest thereon to the redemption date. In the event that less than all
Bonds of any particular maturity are to be redeemed, the Bonds to be redeemed shall be drawn by lot by the Paying
Agent.

Mandatory Redemption

         The Bonds maturing on September 1 ___, and September 1, ___, are subject to mandatory redemption by
the County in part, by lot, at a redemption price of 100% of the principal amount thereof plus accrued interest to the
date fixed for redemption, on September 1 in the years and in amounts set forth below:

    Bonds Maturing September 1, 20__                                            Bonds Maturing September 1, 20___
      Year             Principal Amount                                           Year            Principal Amount



                                   *                                                                              *
_______________
*Final Maturity

Notice of Redemption

         Any redemption of Bonds shall be upon notice effected by depositing a copy of the redemption notice in first
class mail, addressed to the registered owners of Bonds to be redeemed, not less than thirty (30) days and not more than
sixty (60) days prior to the date fixed for redemption, at the addresses shown on the registration books kept by the
Paying Agent as of the day such Bonds are selected for redemption; provided, however, that failure to give such notice
by mailing, or any defect therein or in the mailing thereof, shall not affect the validity of any proceeding for redemption
of other Bonds called for redemption as to which proper notice has been given.

         If at the time of mailing of any notice of optional redemption the County shall not have deposited with the
Paying Agent monies sufficient to redeem all the Bonds called for redemption, such notice shall state that it is subject
to the deposit of the redemption monies with the Paying Agent not later than the opening of business on the redemption
date and shall be of no effect unless such monies are so deposited.




                                                           -7-
         On the date designated for redemption, notice having been provided as aforesaid and money for payment of
the principal and accrued interest being held by the Paying Agent, interest on the Bonds and portions thereof so called
for redemption shall cease to accrue and such Bonds or portions thereof shall cease to be entitled to any benefit or
security under the Ordinance, and registered owners thereof shall have no rights with respect thereto, except to
receive payment of the principal to be redeemed and accrued interest thereon to the date fixed for redemption.

          If the redemption date for any Bonds shall be a Saturday, Sunday, legal holiday or a day on which banking
institutions in the Commonwealth are required or authorized by law or executive order to close, then the date for
payment of the principal, premium, if any, and interest upon such redemption shall be the next succeeding day which is
not a Saturday, Sunday, legal holiday or a day on which such banking institutions are required or authorized to close,
and payment on such date shall have the same force and effect as if made on the nominal date of redemption.

                                                     SOURCES AND USES OF FUNDS

The following sets forth the sources and uses of funds:

  Sources of Funds:
    Par Amount of Series A Bonds (Federally Taxable) ................................................... $
    Par Amount of Series B Bonds ....................................................................................
    Net Reoffering Premium/(Discount) ...........................................................................
               Total Sources of Funds ..................................................................................... $

  Uses of Funds:
    Deposit to Capital Projects Fund ................................................................................. $
    Deposit to Escrow Fund...............................................................................................
    Swap Termination Fee .................................................................................................
    Costs of Issuance (1)....................................................................................................
            Total Uses of Funds .......................................................................................... $
__________________
(1) Includes legal fees and expenses, underwriter’s discount, paying agent initial and redemption fees, financial
    consultant fees, rating fees, bond insurance premium, verification, printing of Preliminary and Official
    Statements, and other related expenses.




                                                                             -8-
                           DEBT SERVICE SCHEDULE
                     COUNTY OF WASHNGTON, PENNSYLVANIA
          GENERAL OBLIGATION BONDS, FEDERALLY TAXABLE SERIES A OF 2012

Dated: Date of Delivery of the Bonds                             Due: September 1, as shown below

                            Mandatory                                               Net Fiscal Year
                             Sinking                                                 Debt Service
                               Fund      Interest                 Total Principal    (Year Ending
   Date        Principal    Redemption    Rate        Interest     and Interest         12/31)




                                                -9-
                               DEBT SERVICE SCHEDULE
                         COUNTY OF WASHNGTON, PENNSYLVANIA
                       GENERAL OBLIGATION BONDS, SERIES B OF 2012

Dated: Date of Delivery of the Bonds                              Due: September 1, as shown below

                            Mandatory                                                Net Fiscal Year
                             Sinking                                                  Debt Service
                               Fund      Interest                  Total Principal    (Year Ending
   Date        Principal    Redemption    Rate         Interest     and Interest         12/31)




                                                -10-
                                                                    COUNTY OF WASHINGTON
                                         NET DEBT SERVICE ON OUTSTANDING COUNTY ISSUES BEFORE ISSUANCE OF THE BONDS(1)



                      Series 1992        Series 2002    Series 2003    Series 2003A     Series 2007A     Series 2007B   Debt Service   Debt Service      Total
         Year         Debt Service       Debt Service   Debt Service   Debt Service     Debt Service     Debt Service     Credits        Subsidy      Debt Service
         2012          $1,345,000          $608,558       $288,750          $784,945         $647,155       $321,650         -76,077      -200,000     $3,719,980
         2013           1,345,000            608,343        286,250          786,495           647,855        314,550       -124,234      -200,000      3,664,259
         2014           1,390,000            608,118        288,625          566,651           623,855        307,650       -111,733             0      3,673,166
         2015           1,390,000            607,888        290,750          562,296           625,155        191,450       -111,878             0      3,555,661
         2016           1,390,000            607,653        287,750          561,721           626,255        174,250       -112,299             0      3,535,330
         2017           1,390,000            607,413        289,625          564,701           622,255        172,250       -112,193             0      3,534,051
         2018           1,390,000            607,169        286,375          561,701           627,849        170,203       -112,364             0      3,530,933
         2019           1,390,000            606,919        288,000          562,396           627,927        173,016       -112,546             0      3,535,711
         2020           1,390,000            606,669        289,375          561,796           627,786        175,500       -112,999             0      3,538,127
         2021                   0            606,419      2,235,625           90,396           544,286        172,875       -112,942             0      3,536,659
         2022                   0            606,163      2,229,375           46,890           542,536        175,250       -113,158             0      3,487,055
         2023                   0          2,930,906              0                0           545,677        162,406       -102,307             0      3,536,682
         2024                   0          2,941,494              0                0           538,818        155,109        -92,661             0      3,542,760
         2025                   0          2,925,419              0                0           551,739        152,922        -92,408             0      3,537,673
         2026                   0          2,938,706              0                0           539,552        160,625        -92,408             0      3,546,476
         2027                   0          1,734,563              0                0         1,716,224        658,000       -586,579             0      3,522,208
         2028                   0                  0              0                0         3,402,880        633,500       -563,644             0      3,472,736
         2029                   0                  0              0                0         3,406,700      1,183,891     -1,032,523             0      3,558,067
         2030                   0                  0              0                0         3,403,260              0              0             0      3,403,260
         2031                   0                  0              0                0         3,475,000              0              0             0      3,475,000
         2032                   0                  0              0                0         3,425,000              0              0             0      3,425,000
         2033                   0                  0              0                0                 0              0              0             0              0
         2034                   0                  0              0                0                 0              0              0             0              0
         2035                   0                  0              0                0                 0              0              0             0              0
         2036                   0                  0              0                0                 0              0              0             0              0
         2037                   0                  0              0                0                 0              0              0             0              0
         Total        $12,420,000        $20,152,395     $7,060,500       $5,649,990     $27,767,764       $5,455,097   $-3,774,951      $-400,000    $74,330,794




______________________
*Preliminary, subject to change
(1) Totals may not add due to rounding
                                                                                      -11-
                                        COUNTY FINANCIAL HISTORY

         The County has never defaulted on the payment of lease rentals or debt service. The status of the County’s
present indebtedness is shown in the table entitled “Bonded Indebtedness” in Appendix A.


                                              FUTURE FINANCING

         At this time, the County anticipates an additional borrowing of approximately $8,000,000 within the next
two (2) years to finance the costs of a County-wide reassessment.

                                           TAX MATTERS - FEDERAL

Series A Bonds

        This advice with respect to the Series A Bonds is not intended or written to be used, and cannot be used, by
any person for the purpose of avoiding penalties under the Internal Revenue Code of 1986, as amended, and is
provided in support of the promotion and marketing of the Series A Bonds. Prospective owners of the Series A
Bonds should seek advice based on their particular circumstances from an independent tax advisor.

         Interest on the Series A Bonds is included in gross income of owners of the Series A Bonds for federal
income tax purposes. In addition, for tax years beginning after December 31, 2012, interest received by certain
individual, trust and estate holders of the Series A Bonds may, after certain adjustments and limitations, be subject
to a 3.8% “unearned income Medicare contributions tax” by virtue of its inclusion in the “net investment income” of
the holder under Section 1411 of the Code. Ownership of the Series A Bonds may result in other tax consequences
to certain taxpayers. Bond Counsel will express no opinion as to the federal income tax consequences of
purchasing, owning, and disposing of the Series A Bonds.

Series B Bonds

          In the opinion of Bond Counsel, assuming compliance with certain covenants of the County, interest on the
Series B Bonds is excluded from gross income of the owners of the Series B Bonds for federal income tax purposes
under existing law, as currently enacted and construed. Interest on the Series B Bonds is not an item of tax
preference under the Code for purposes of determining the alternative minimum tax imposed on individuals and
corporations. Interest on a Series B Bond held by a corporation (other than an S corporation, regulated investment
company, real estate investment trust or real estate mortgage investment conduit) may be indirectly subject to
alternative minimum tax because of its inclusion in the earnings and profits of the corporate holder. Interest on a
Series B Bond held by a foreign corporation may be subject to the branch profits tax imposed by the Code.

         Ownership of the Series B Bonds may give rise to collateral federal income tax consequences to certain
taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, S
corporations with Code Subchapter C earnings and profits, individual recipients of Social Security or Railroad
Retirement benefits and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or
carry the Series B Bonds. Bond Counsel expresses no opinion as to any such collateral federal income tax
consequences. Purchasers of the Series B Bonds should consult their own tax advisors as to such collateral federal
income tax consequences.

Original Issue Discount

         The initial public offering price of Series B Bonds of certain maturities may be greater than the amount
payable on such Series B Bonds at maturity. Bond Counsel expresses no opinion herein with respect to the
treatment of such excess of offering price over amounts payable at maturity (“original issue premium”). Investors
should seek advice thereon from their own tax advisor.

         The initial public offering price of Series B Bonds of certain maturities may be less than the amount
payable at maturity. The difference between the initial public offering price and the amount payable at maturity
constitutes original issue discount. Bond Counsel is of the opinion that the appropriate portion of such original issue


                                                         -12-
discount allocable to the original and each subsequent holder will, upon sale, exchange, redemption, or payment at
maturity, be treated as interest and excluded from gross income for federal income tax purposes to the same extent
as the stated interest on the Series B Bonds.

          The Code sets forth certain requirements which must be met subsequent to the issuance and delivery of the
Series B Bond for interest thereon to remain excludible from the gross income of the owners of the Series B Bonds
for federal income tax purposes. The County has covenanted in the Ordinance and a Tax Certificate to comply with
such requirements. Noncompliance with such requirements may cause the interest on the Series B Bonds to be
includible in the gross income of the owners of the Series B Bonds for federal income tax purposes, retroactive to
the date of issue of the Series B Bonds. The opinion of Bond Counsel assumes compliance with such covenants,
and Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not
taken) or events occurring (or not occurring) after the date of issuance of the Series B Bonds may affect the tax
status of interest on the Series B Bonds.

                        TAX MATTERS – COMMONWEALTH OF PENNSYLVANIA

         Bond Counsel is of the opinion that, under the laws of the Commonwealth of Pennsylvania, as currently
enacted and construed, the Bonds are exempt from personal property taxes in Pennsylvania, and the interest on the
Bonds is exempt from Pennsylvania personal income tax and Pennsylvania corporate net income tax.

         Pursuant to the provisions of Act 68 of 1993 of the Commonwealth of Pennsylvania (“Act 68”), profits,
gain or income from the sale of the Bonds shall be subject to Pennsylvania personal income tax and Pennsylvania
corporate net income tax.

         Bond Counsel expresses no opinion as to the treatment of original issue premium or original issue discount
in the computation of profits, gain or income from the sale of the Bonds pursuant to Act 68.

         Purchasers of the Bonds should consult their tax advisors regarding any pending or proposed legislation,
regulatory initiatives or litigation. The disclosures and opinions expressed herein are based upon existing legislation
and regulations as interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery
of the Bonds, and no opinion is expressed as of any date subsequent thereto or with respect to any proposed or
pending legislation, regulatory initiatives or litigation.

                                          NEGOTIABILITY OF BONDS

        The Bonds have all the qualities and incidents of securities under Article 8 of the Uniform Commercial
Code and are negotiable instruments, subject to the provisions for registration contained in the Ordinance.

                                                LEGAL OPINIONS

        Certain legal matters relating to the authorization and issuance of the Bonds will be subject to the
approving opinion of Pepper Hamilton LLP, Pittsburgh, Pennsylvania, as Bond Counsel and DiCarlo & Associates,
Washington, Pennsylvania, as Co-Bond Counsel. Certain legal matters will be passed upon for the County by J.
Lynn DeHaven, Esquire, Washington, Pennsylvania, as Solicitor to the County.

                                CONTINUING DISCLOSURE UNDERTAKING

         In accordance with the requirements of Rule 15c2-12 (the “Rule”), promulgated under the Securities
Exchange Act of 1934, as amended, by the Securities and Exchange Commission (the “Commission”), the County
will agree:

         (i)      To file annually with the Municipal Securities Rulemaking Board (the “MSRB”) through the
                  MSRB’s Electronic Municipal Market Access (EMMA) in such electronic format as is prescribed
                  by the MSRB and accompanied by such identifying information as prescribed by the MSRB, not
                  later than 275 days following the end of each fiscal year of the County, beginning with the fiscal
                  year ending December 31, 2012, the following financial information and operating data with
                  respect to the County which the County customarily prepares and makes public:



                                                         -13-
                 (a) a copy of the annual audited financial statements of the County prepared in accordance with
                     generally accepted municipal accounting principles in Pennsylvania, and audited in
                     accordance with generally accepted auditing standards;

                 (b) a copy of the County’s general fund budget for the current fiscal year;

                 (c) a list of the ten (10) largest real estate taxpayers and, for each, the total assessed value of real
                     estate for the new calendar year;

                 (d) the assessed value and market value of all taxable real estate for the new fiscal year;

                 (e) the current taxes and millage rates imposed for the new fiscal year; and

                 (f) the real property tax collection results for the most recent fiscal year, including (1) the real
                     estate levy imposed (expressed as both millage rate and an aggregate dollar amount); (2) the
                     dollar amount of real estate taxes collected that represented current collections; (3) the
                     amount of real estate taxes collected that represented taxes levied in prior years; (4) the total
                     amount of aggregate real estate taxes collected (expressed both as a percentage of the current
                     year’s levy and as an aggregate dollar amount);

        (ii)     to file in a timely manner not in excess of ten (10) business days after the occurrence of such
                 event, with the MSRB, in such electronic format as is prescribed by the MSRB and accompanied
                 by such identifying information as prescribed by the MSRB, notice of the occurrence of any of the
                 following events with respect to the Bonds:

                 (1)      principal and interest payment delinquencies;
                 (2)      non-payment related defaults, if material;
                 (3)      unscheduled draws on debt service reserves reflecting financial difficulties;
                 (4)      unscheduled draws on credit enhancements reflecting financial difficulties;
                 (5)      substitution of credit or liquidity providers, or their failure to perform;
                 (6)      adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
                          determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other
                          material notices or determinations with respect to the tax status of the Bonds or other
                          material events affecting the tax status of the Bonds;
                 (7)      modifications to the rights of Holders, if material;
                 (8)      Bond calls, if material, and tender offers;
                 (9)      defeasances;
                 (10)     release, substitution, or sale of property securing repayment of the Bonds, if material;
                 (11)     rating changes;
                 (12)     bankruptcy, insolvency, receivership or similar event of the Issuer;
                 (13)     the consummation of a merger, consolidation, or acquisition involving an obligated
                          person or the sale of all or substantially all of the assets of the obligated person, other
                          than in the ordinary course of business, the entry into a definitive agreement to undertake
                          such an action, or the termination of a definitive agreement relating to any such actions,
                          other than pursuant to its terms, if material; and
                 (14)     appointment of a successor or additional trustee, or the change of name of a trustee, if
                          material.
        (iii)    to file in a timely manner with the MSRB and accompanied by such identifying information as
                 prescribed by the MSRB, notice of a failure of the County to provide the required annual financial
                 information set forth in subparagraph (i) above on or before the date specified above.

          The County may from time to time choose to provide notice of the occurrence of certain other events, in
addition to those listed above, if, in the judgment of the County, such other event is material with respect to the
Bonds, but the County does not commit to provide notice of the occurrence of any material event except those
events listed above.




                                                         -14-
         The County reserves the right to terminate its respective obligation to provide annual financial information
and notices of material events, as summarized above, if and when such County is no longer an “obligated person”
with respect to the Bonds within the meaning of the Rule. The County acknowledges that its undertaking pursuant
to the Rule described under this heading is intended to be for the benefit of the holders of the Bonds and shall be
enforceable by the holders of such Bonds; provided that the Bondholders’ right to enforce the provisions of this
undertaking shall be limited to a right to obtain specific enforcement of the County’s obligations hereunder and any
failure by the County to comply with the provisions of this undertaking shall not be an event of default with respect
to the Bonds.

         Effective July 1, 2009, the MSRB was designated by the SEC to be the central repository for ongoing
disclosures by municipal issuers. Disclosure filings and notices are made available to investors through the MSRB’s
Electronic Municipal Market Access (EMMA) system which is accessible on the internet at http://emma.msrb.org.

Continuing Compliance

         The County in accordance with its Continuing Disclosure Agreement, has timely provided ongoing
disclosure of annual financial information and notice of material events affecting its securities to various
repositories.

        The County, however, inadvertently failed to file its annual financial information with MSRB through the
EMMA system since it was designated by the SEC as the central repository for ongoing disclosures. The County
has complied by making the annual financial information filings with the MRSB through EMMA for all years since
2007.
         The County will be entering into a Continuing Disclosure Certificate in connection with the Bonds in
which it will agree to provide continuing disclosure material and notice of material events affecting the Bonds on an
ongoing basis following Closing of the Bonds, as more specifically set forth herein.

                                          FINANCIAL CONSULTANT

          The County has retained VALCO Capital, Ltd., Ligonier, Pennsylvania, as financial consultant (the
“Financial Consultant”) in connection with the financial terms of the Bonds. The Financial Consultant is not
obligated to undertake, and has not undertaken to make, an independent verification or to assume responsibility for
the accuracy, completeness, or fairness, of the information contained in the Official Statement. The Financial
Consultant is an independent consulting firm and is not engaged in the business of underwriting, trading, or
distributing municipal securities or other public securities.

                                                    RATINGS

         Standard and Poor’s Ratings Services (the “Rating Agency”) is expected to assign its municipal bond rating
of “___” (___________ outlook) to this issue of Bonds with the understanding that upon delivery of the Bonds, a
policy insuring the payment when due of the principal of and interest on the Bonds will be issued by
___________________ (“___”). In addition, the Rating Agency has assigned an underlying rating of “A+” (stable
outlook) to the Bonds. Such ratings reflect only the views of such organizations and any desired explanation of the
significance of such ratings should be obtained from the Rating Agency furnishing the same. Generally, a rating
agency bases its rating on the information and materials furnished to it and on investigations, studies and
assumptions of its own. There is no assurance such ratings will continue for any given period of time or that such
ratings will not be revised downward or withdrawn entirely by the Rating Agency, if in the judgment of such Rating
Agency, circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an adverse
effect on the market price of the Bonds.
                                                UNDERWRITING

         The Bonds are being purchased for reoffering by Boenning & Scattergood, Inc. (the “Underwriter”). The
Underwriter has agreed to purchase the Bonds at an aggregate purchase price of $__________ (consisting of the par
amount of bonds plus/less net original issue premium/discount of $_______, and less Underwriter’s discount of
$__________) plus accrued interest, if any, to the date of Closing. The purchase contract for the Bonds provides
that the Underwriter will purchase all the Bonds, if any are purchased, and that the obligation to make such purchase
is subject to certain terms and conditions set forth in the Purchase Contract. The Underwriter may offer and sell


                                                        -15-
certain Bonds to certain dealers and others (including sales for deposit into investment trusts) at prices lower than
the public offering price stated on the cover page hereof. The Underwriter may over-allot or effect transactions
which stabilize or maintain the market price of the Bonds at levels above those which might otherwise prevail in the
open market; such stabilizing, if commenced, may be discontinued at any time without prior notice.

                                 CERTIFICATION OF OFFICIAL STATEMENT

         The County hereby states that the descriptions and statements herein are true and correct in all material
respects and it will confirm to the purchasers of the Bonds, by certificates signed by the Chairman of the County
Board of Commissioners, that to his knowledge such statements, as of the date hereof, are true and correct in all
material respects and do not contain any untrue statement of material fact or omit to state a material fact necessary to
make the statements herein, in light of the circumstances under which they were made, not misleading.

         All other information has been obtained from sources, which the County considers to be reliable and it
makes no warranty, guaranty or other representation with respect to the accuracy and completeness of such
information.

                             VERIFICATION OF MATHEMATICAL ACCURACY

         The arithmetical accuracy of the mathematical computations supporting the adequacy of the funds
deposited with the Escrow Agent, together with the investment earnings thereon, and an initial cash deposit, if
necessary, to effect the payment of the principal of and interest on the 1992 Refunded Bonds until the redemption
date and the arithmetical accuracy of the mathematical computations supporting the conclusion that the Bonds will
not be “arbitrage bonds” under Section 103(c) of the Internal Revenue Code of 1986, as amended, will be verified
by Causey Demgen & Moore, Denver Colorado, as a condition to the delivery of the Bonds.

                                                 MISCELLANEOUS
No Litigation

         There is no litigation of any nature, now pending or threatened seeking to restrain or enjoin the issuance or
sale of the Bonds being proposed, or contesting or affecting the validity of the Bonds or any proceedings of the
County with respect to the issuance or sale thereof, or the payment of the Bonds or existence or powers of the
County. There are no pending or threatened legal proceedings materially adversely affecting the ability of the
County to meet its obligations in connection with the Bond funding.

          As a condition of settlement for the Bonds, the County and its Solicitor will deliver a certificate stating that
there is no litigation, of any nature, pending or threatened against the County to restrain or enjoin the issuance, sale,
execution or delivery of the Bonds, or if any such litigation is pending or threatened, an opinion of counsel satisfactory
to the Underwriter that any such litigation is without merit.

Remedies

          The remedies available to Registered Owners upon any failure to pay principal of or interest on the Bonds
when due include those prescribed by the Debt Act. If such failure should continue for 30 days, the Registered
Owner will (subject to certain priorities) have the right to bring suit for the amount due him in the Court of Common
Pleas for Washington County, Pennsylvania. The Debt Act provides that any judgment shall have an appropriate
priority upon the moneys next coming into the treasury of the County. If the County defaults in the payment of
principal of or interest on the Bonds and such default continues for 30 days, or if the County fails to comply with
any provision of the Bonds or of the Ordinance, the Registered Owners of 25% in aggregate principal amount of the
Bonds may also appoint a trustee (who may be the Paying Agent) to represent the Registered Owners in the manner
set forth in the Debt Act. Such trustee may, and upon written request of the owners of 25% in aggregate principal
amount of the Bonds and being furnished with satisfactory indemnity shall, take one or more of the following
actions (which shall preclude certain other similar actions taken by others): (i) bring suit to enforce all rights of the
Registered Owners, (ii) bring suit on the Bonds, (iii) require the County to account as if it were a trustee of an
express trust for the Registered Owners of the Bonds for any pledged revenues received, (iv) petition the court to
levy, on property subject to ad valorem taxation, the amount due on the Bonds, (v) after 30 days prior written notice
to the County, declare the unpaid principal of the Bonds to be immediately due and payable with interest to the date
of payment (which may be annulled as described in the Debt Act), and (vi) by suit in equity, enjoin any acts or

                                                          -16-
things which may be unlawful or in violation of the rights of the Registered Owners all as set forth more fully in the
Debt Act. The taking of such action by such trustee shall preclude the taking of similar action by individual
Registered Owners of the Bonds.

         Pennsylvania's Financially Distressed Municipalities Act, Act No. 1987-47 (“Act 47”) became effective on
September 8, 1987. Under Act 47, upon a determination by the Pennsylvania Secretary of Community Affairs, now
Community and Economic Development (the “Secretary”) that a municipality is financially distressed (one
indication of which is a default in the payment of principal or interest on any bonds or notes) the Secretary shall
appoint a coordinator who shall prepare a plan for restoring the financial integrity to the municipality. The
coordinator shall file a proposed plan, publish notice of such filing in one or more local newspapers, receive written
comments on the proposed plan, hold a public meeting on the proposed plan, make any revisions thereto and submit
the final plan to the municipality's governing body. All creditors are entitled to written notice of the plan's final
adoption by the municipality's governing body. The intent of Act 47 is to provide for the adjustment of municipal
debt by negotiated agreement with creditors. The plan, however, may recommend that the municipality file for
relief under Chapter 9 of the United States Bankruptcy Code.

         The municipality's governing body is also authorized, subject to certain preconditions including insolvency
or an inability to meet its debts, to file for bankruptcy without a determination of financial distress. A bankruptcy
filing would operate as an automatic stay of the commencement or continuation of any judicial or other proceeding
against the municipality and its property. A plan for the adjustment of debts filed by a municipality in such a
proceeding could include provisions modifying or altering the rights of creditors, including the Registered Owners
of the Bonds. Such a plan, if confirmed by a court, binds all creditors who had notice or knowledge of the plan and
discharges all claims against the municipality provided for in the plan.

          The rights and remedies of bondholders are also subject to the provisions of Chapter 9 of the United States
Bankruptcy Code. In general, that Chapter permits, under prescribed circumstances, a political subdivision of a state
to file a petition for relief in a bankruptcy court of the United States if it is insolvent or unable to meet its debts as
they mature and desires to effect a plan to adjust its debt. Such plan may, on being approved by a certain percentage
of creditors and the court, include provisions modifying or altering the rights of creditors.

          Any reference herein to Act 47 or the United States Bankruptcy Code should not be taken as any indication
that the County intends to proceed under either of those statutes.

Other

         All references to the provisions of the Act, the Bonds, the Ordinance, and legal opinions and all documents
and certificates delivered at settlement for the Bonds described in this Official Statement are made subject to all the
specific provisions thereof, to which reference is hereby made for further information, and this Official Statement
does not purport to be a complete statement of any or all such provisions.




                                                          -17-
         All information, estimates and assumptions herein have been obtained from officials of the County, other
governmental bodies, trade and statistical services, and other sources which are believed to be reliable; but no
representations whatsoever are made that such estimates or assumptions are correct or will be realized. So far as any
statements herein involve matters of opinion, whether or not expressly so stated, they are intended as such and not
representations of fact.

        The County has authorized the distribution of this Official Statement.

                                                            COUNTY OF WASHINGTON, PENNSYLVANIA




                                                            Lawrence O. Maggi, Chairman
                                                            Board of Commissioners
                                                            County of Washington

ATTEST:




Mary Helicke, Chief Clerk




                                                         -18-
             APPENDIX A


DEMOGRAPHIC AND ECONOMIC INFORMATION
           OF THE COUNTY
[THIS PAGE INTENTIONALLY LEFT BLANK]
                                 COUNTY OF WASHINGTON
                      GOVERNMENT STRUCTURE AND GOVERNMENT SERVICES

Government Structures

        Counties and all forms of municipalities in Pennsylvania are political subdivisions of the Commonwealth
of Pennsylvania. In Pennsylvania, counties are classified by population. Washington County is a County of the
Fourth Class, having a 2010 Census population of 207,820. The County originally founded in 1781, is located in
western Pennsylvania, to the south of the City of Pittsburgh.

        The three member Board of County Commissioners is the legislative and executive branch of the County.
Members are elected to four year terms with the proviso that the Board be composed of at least one representative
from an alternate political party.

          The Commissioners are responsible for the overall operation of the County government including the
adoption of a final budget and tax levy, appointment of County department heads and members of County boards,
commissioners and authorities. Additionally, the County Commissioners authorize all contracts, expenditures and
debt of the County.

         The major statutory fiscal officers of the County are the Controller and Treasurer. Subject to the power and
duty of the County Commissioners to manage and administer the fiscal affairs of the County, the Controller
supervises all County fiscal affairs. The Controller’s Office provides pre and post fiscal year auditing of all County
expenditures. The Controller must file an annual accounting of all financial affairs of the County with the
Pennsylvania Department of Community Affairs by July 1 for the preceding fiscal year.

        The Treasurer is responsible for the receipt and disbursement of County funds. These disbursements,
however, must first be authorized by the Commissioners. The Finance Department, under supervision of the
Commissioners, is responsible for investing all County funds.

         County government is also composed of other operating departments, whose major functions are outlined
in the next section.

Government Services

         The functions specifically delegated to the County in the County Code and other state laws include
administration of elections and voter registration, assessment of property for taxation purposes, administration of the
courts, care of prisoners, recording of deeds, construction and maintenance of highway and bridges, construction and
administration of aviation facilities, park development, public health services and provision of infrastructures
improvements.

        Pennsylvania law also directs the County to provide for the administration of veteran’s affairs, scaling of
weights and measures, civil defense, fire investigation, community mental health services, child welfare, public
defender and other general services.

                     COUNTY BUDGETARY PROCESS AND ACCOUNTING SYSTEM

Budgetary Process

          The County Code requires that the Commissioners begin preparation of the budget at least thirty (30) days
prior to its adoption. The budget must be prepared using forms provided by the Department of the Community and
Economic Development of the Commonwealth.

          The proposed budget must be prepared and adopted no later than December 31, and notice thereof must be
published, and the proposed budget must be made available for public inspection for at least twenty (20) days prior
to the date set for adopting a budget.




                                                         A-1
          The budget must reflect as nearly as possible the estimated revenues and expenditures for the year for
which it is prepared and adopted. Within fifteen (15) days after the adoption of the budget, the Commissioners must
file a copy thereof in the office of the Department of Community and Economic Development.

Accounting System

         Washington County utilizes the modified accrual method of accounting which is organized and operated on
a fund basis. The County’s resources are allocated to and accounted for in separate sub-entities, called funds, based
upon the purpose for which they are to be spent and the means by which spending activities are controlled.

         Funds are accounting entities that are segregated for the purpose of the carrying on specific activities or
attaining certain objectives in accordance with special regulations, restrictions or limitations. Within each fund,
revenues are recorded when measured and available to pay liabilities of the current period. Expenditures are
recorded when liability is incurred (except for the interest on long term debt).

                   COUNTY OF WASHINGTON EMPLOYEES’ RETIREMENT SYSTEM

Plan Description

          The Washington County Retirement System (Plan) is a single employer defined benefit pension plan
governed by the County Pension Law Act 96 of 1971 (Act), as amended, enacted by the General Assembly of the
Commonwealth of Pennsylvania. All County employees become eligible to become Plan participants immediately
upon becoming an employee. Membership in the plan is optional for elected officials. The Plan requires each
member to contribute a percentage of their salary to the plan. The Plan provides retirement, disability, and death
benefits to Plan members and their beneficiaries. Cost-of-living adjustments (COLA) are provided at the discretion
of Washington County Employees’ Retirement Board. Separate stand-alone financial statements are issued for the
Plan and may be obtained from the County Controller’s Office.

         As of January 1, 2011, employee membership data related to the Plan was:

                   Participants:
                     Retirees and beneficiaries                              566
                     Deferred vested                                          56
                   Active Employees:
                     Vested                                                  669
                     Non-Vested                                              361
                   Total                                                   1,652

Contributions and Funding Policy

        The Plan’s funding policy provides for periodic employer contributions at actuarially determined rates that,
expressed as a percentage as of annual covered payroll, are sufficient to accumulate sufficient assets to pay benefits
when due. Level percentage of payroll employer contribution rates are determined using the aggregate actuarial
funding method and the same actuarial assumptions used to calculate the pension benefit calculation.

         As a condition of participation, employees are to contribute between 7% to 17% (currently 7%) of their
salary as stipulated in the Act. Interest is credited to employee accounts each year at the annual rate of 5.5% as
voted upon by the County Retirement Board.

         The County’s annual required contribution to the Plan for 2011 was $3,750,578.

         Effective January 1, 2010, the salary assumption was changed. The effect of changing the salary
assumption from 4.0% to 3.5% is that the actuarial accrued liability decreased by $1,578,169. The County
recognizes the fact that the resulting lower annual required contributions may be at the expense of higher future
annual required contributions.




                                                         A-2
Trend Information

                              Annual Pension Cost              Percentage of APC          Net Pension Obligation
      Year Ending                   (PAC)                         Contributed                    (Asset)
       12/31/08                   $ 91,925                          100.0%                     $           -
       12/31/09                    2,407,359                        100.0%                                 -
       12/31/10                    3,581,228                        100.0%                                 -
       12/31/11                    3,750,578                        100.0%                                 -

Funded Status

        The County’s funded status and related information for the plan as of the latest actuarial valuation date,
January 1, 2011, is as follows:

                       Actuarial                                                                       Excess
                        Accrued        Excess of Assets                                           (Deficiency) as a
Actuarial Value     Liability (AAL)     Over (Under)                                               Percentage of
   of Assets           Entry Age            AAL               Funded Ratio    Covered Payroll     Covered Payroll
 $95,337,039         $118,310,447       $(22,973,408)           80.58%         $40,421,525           (56.83%)

                             OTHER POST EMPLOYMENT BENEFITS (OPEB)

         In addition to the pension benefits, the County provides post-retirement health care benefits to certain
retired employees, in accordance with various union contracts and other employment agreements. The County funds
all County contributions on a pay-as-you-go basis. The benefit limits, funding policy and employee and employer
contributions are established and amended through union contracts or the County’s Board of Commissioners.

         The following table shows the components of the County’s annual OPEB cost for the year, the amount
actually contributed to the plan, and changes in the County’s net OPEB obligations.

                     Annual required contribution                            $4,544,738
                     Interest on net OPEB obligation                            272,394
                     Adjustment to annual required contribution               1,042,068

                     Annual OPEB cost                                         5,859,200
                     Contributions made                                       2,215,822

                     Increase (decrease) in net OPEB obligation               3,643,378
                     Net OPEB obligation (asset) beginning of year            4,639,539

                          Net OPEB obligation (asset) end of year            $8,282,917

        The schedule of funding progress as of the latest actuarial valuation date, January 1, 2010, for the
postemployment healthcare benefits is as follows:

                                           Unfunded
                       Actuarial            Accrued                                                 UAAL as a
                       Accrued              Liability                                              Percentage of
Actuarial Value     Liability (AAL)         (UAAL)            Funded Ratio    Covered Payroll     Covered Payroll
 of Assets (a)             (b)               (b)-(a)             (a)/(b)            (c)             [(b)-(a)/(c)]
      $-             $42,360,865          $42,360,865            0.00%         $40,609,970            104.3%




                                                        A-3
Three Year Trend Information

                                                                Percentage of AOC             Net OPEB Obligation
      Year Ending              Annual OPEB Cost (AOC)              Contributed                      (Asset)
       12/31/10                        4,445,542                       50%                          8,282,917
       12/31/09                        3,134,978                       54%                          4,639,539
       12/31/08                        4,596,579                       31%                          3,182,921

                                               LABOR RELATIONS

        There are approximately 1,067 employees of the County, including 775 union members and 281 full time
and 11 part time salaried employees.

         The table below outlines the various collective bargaining units representing County employees.

                                                                                                  Date of
                                      Description/Personnel             Number of                Contract
      Name of Union                          Included                   Employees                Expiration
      SEIU                             Service Employees               516 FT/55 PT              12/31/12
      PSSU                              Children & Youth                  61 FT                  12/31/12
      DPSA                              Sheriffs Deputies               23 FT/9 PT               12/31/13
      WCAPE                             Probation Officers                29 FT                  12/31/12
      Teamsters Union 205              Correction Officers             50 FT/17 PT               12/31/13
      Teamsters Union 249             Assistant PD’s & DA’s               15 FT                  12/31/11 (1)
________________
(1) Currently in arbitration

                                      SOURCES OF COUNTY REVENUES

         Washington County, as a fourth class county, is permitted to impose the following taxes:

Real Estate Taxes

          General County Purposes. No tax for general county purposes in a county of the fourth class, exclusive of
the requirements for the payment of interest and principal of the funded debt of any such county and for the payment
of rentals to any municipal authority, shall in any one year exceed the rate of twenty (20) mills on every dollar of the
adjusted valuation. Presently, the County’s real estate tax rate for general County purposes is 22.85 mills for the
2012 Fiscal Year.

          Rentals to a Municipal Authority. Tax for the payment of rentals to any municipal authority shall not
exceed the rate of ten (10) mills on every dollar of the adjusted valuation and shall be in addition to the twenty (20)
mill limitations for general county purposes. Presently, the County does not impose a real estate tax for the payment
of rentals to any municipal authority.

          Payments of Principal and Interest. An annual tax on all taxable real estate is permitted without limit to
provide for the payment of the interest and principal of the funded debt of the county. Presently, the County’s real
estate tax rate for payments of principal and interest of funded debt is 2.05 mills.

Other Taxes

          Personal Property Tax. The County personal property tax (money at interest tax), under the provisions of
the Act of June 17, 1972, P.L. 507, as amended, is a tax on certain intangible property enumerated in the said Act,
including stocks and bonds, owned or held by a Pennsylvania resident in his own right or as an active trustee, agent,
attorney-in-fact or in any other manner, except as executor or administrator of the estate of a non-resident decedent
or as a trustee for a religious, charitable or education organization. The tax is also imposed on the equitable interest
of a resident beneficiary of an out-of-state trust. Presently, the County does not impose a personal property tax.



                                                         A-4
          Occupation Tax. The rate of taxation fixed for any occupation tax levied by a county of the fourth, fifth,
sixth, seventh, or eighth class shall not in any one year exceed twenty (20) mills. The County Commissioners may,
by resolution, abolish the levy and collection of occupation taxes for county purposes. Presently, the County does
not impose an occupation tax.

        Per Capita Tax. The County Commissioners of counties of the fourth, fifth, sixth, seventh and eighth class
may levy and collect an annual per capita tax on persons for county purposes. Presently, the County does not
impose a per capita tax.

        Hotel Tax. The County Commissioners implemented a 3% hotel occupancy tax in August of 2001.

         No tax shall be levied and collected for county purposes on offices and posts of profits, or on professions,
trades and occupations at the same time during which a per capita tax on persons is levied and collected for county
purposes.

          Any per capita taxes levied upon and collected from any person shall not in any one year exceed a total of
five dollars ($5) for county purposes. Presently, the County does not impose a per capita tax.

                       COUNTY OF WASHINGTON REAL PROPERTY TAX RATES
                                    (Mills on Assessed Value)

                        2007             2008             2009            2010             2011            2012

   General            19.10              19.35           19.35            22.85            22.85           22.85
   Debt Service         2.30              2.05            2.05             2.05             2.05            2.05
   Total              21.40              21.40           21.40            24.90            24.90           24.90
_______________________
Source: County Officials

                                COUNTY OF WASHINGTON
          2011 MILLAGE RATES FOR MUNICIPALITIES, COUNTY AND SCHOOL DISTRICT

                                                                                School Rate
           Municipality               County Rate        Municipal Rate        (2011-2012)              Total
Avella Area School District
Cross Creek Township                      24.90               14.00               120.88               159.78
Hopewell Township                         24.90               12.00               120.88               157.78
Independence Township                     24.90               14.00               120.88               159.78
West Middletown Borough                   24.90               10.00               120.88               155.78
Bentworth School District
Bentleyville Borough                      24.90               29.00               117.30               171.20
Cokeburg Borough                          24.90               26.00               117.30               168.20
Ellsworth Borough                         24.90               19.00               117.30               161.20
North Bethlehem Township                  24.90               16.00               117.30               158.20
Somerset Township                         24.90               12.00               117.30               154.20
Bethlehem Center School
District
Beallsville Borough                       24.90               22.00               104.14               151.04
Centerville Borough                       24.90               37.00               104.14               166.040
Deemston Borough                          24.90               16.50               104.14               145.540
East Bethlehem Township                   24.90               29.00               104.14               158.040
Marianna Borough                          24.90               30.00               104.14               159.040
West Bethlehem Township                   24.90               17.20               104.14               146.240
Burgettstown Area School
District
Burgettstown Borough                      24.90               32.00               117.00               173.90
Hanover Township                          24.90                4.00               117.00               145.90


                                                        A-5
                                                                  School Rate
           Municipality           County Rate   Municipal Rate   (2011-2012)     Total
Jefferson Township                   24.90        10.00           117.00        151.90
Smith Township                       24.90        18.50           117.00        160.40
California Area School District
Allenport Borough                    24.90            27.00        91.07        142.97
California Borough                   24.90            35.00        91.07        150.97
Coal Center Borough                  24.90            29.00        91.07        144.97
Elco Borough                         24.90            18.20        91.07        134.17
Long Branch Borough                  24.90            11.00        91.07        126.97
Roscoe Borough                       24.90            13.00        91.07        128.97
West Pike Run Township               24.90            17.00        91.07        132.97
Canon-McMillan School
District
Canonsburg Borough                   24.90            37.33       105.41        167.64
Cecil Township                       24.90            16.00       105.41        146.31
North Strabane Township              24.90            11.48       105.41        141.79
Charleroi Area School District
Charleroi Borough                    24.90            42.15       127.00        194.05
Dunlevy Borough                      24.90            11.40       127.00        163.30
Fallowfield Township                 24.90            18.00       127.00        169.90
North Charleroi Borough              24.90            42.50       127.00        194.40
Speers Borough                       24.90            20.00       127.00        171.90
Stockdale Borough                    24.90            19.00       127.00        170.90
Twilight Borough                     24.90            16.00       127.00        167.90
Chartiers-Houston School
District
Chartiers Township                   24.90             9.00       106.50        140.40
Houston Borough                      24.90            29.00       106.50        160.40
Fort Cherry School District
McDonald Borough                     24.90            40.75       118.50        184.15
Midway Borough                       24.90            31.25       118.50        174.90
Mt. Pleasant Township                24.90            17.00       118.50        160.40
Robinson Township                    24.90            15.00       118.50        158.40
McGuffey School District
Blaine Township                      24.90            14.00       117.33        156.23
Buffalo Township                     24.90             7.00       117.33        149.23
Claysville Borough                   24.90            26.00       117.33        168.23
Donegal Township                     24.90            12.00       117.33        154.23
East Finley Township                 24.90             9.00       117.33        151.23
Green Hills Borough                  24.90             5.00       117.33        147.23
Morris Township                      24.90            12.00       117.33        154.23
South Franklin Township              24.90            11.00       117.33        153.23
West Finley Township                 24.90             6.00       117.33        148.23
Peters Township School District
Peters Township                      24.90            13.00        96.51        134.41
Ringgold School District
Carroll Township                     24.90             6.60       120.00        151.50
Donora Borough                       24.90            33.00       120.00        177.90
Finleyville Borough                  24.90            25.00       120.00        169.90
Monongahela City                     24.90            23.00       120.00        167.90
New Eagle Borough                    24.90            34.84       120.00        179.74
Nottingham Township                  24.90            10.20       120.00        155.10
Union Township                       24.90            12.00       120.00        156.90
Trinity Area School District
Amwell Township                      24.90             7.00       103.00        134.90
Canton Township                      24.90             5.50       103.00        133.40


                                                A-6
                                                                                 School Rate
          Municipality                County Rate        Municipal Rate         (2011-2012)               Total
North Franklin Township                  24.90             15.00                 103.00                  142.90
South Strabane Township                  24.90               7.50                103.00                  135.40
Washington School District
East Washington Borough                    24.90             28.00                127.00                 179.90
Washington City (Land)                     24.90            107.63                127.00                 259.53
Washington City (Buildings)                24.90              3.50                127.00                 155.40
____________________
Source: Pa. Department of Community and Economic Development, Municipal Statistics Reports; County 2012 Budget

                            COUNTY OF WASHINGTON
       COMBINED SUMMARY OF GENERAL FUND ASSETS, LIABILITIES AND FUND EQUITY

                                                                                                             2011
                                             2007              2008           2009             2010       (Unaudited)
ASSETS
 Cash and Cash Equivalents                 $11,771,212    $10,277,049       $7,662,035     $17,436,309    $17,957,657
 Taxes Receivable                            1,418,732       1,84,800        1,853,876       1,946,829      1,972,280
 Due From Other Governments                  6,368,884      6,969,433        8,212,695       4,760,174      4,971,592
 Interest and other                          1,084,328      1,068,265        1,469,735       1,409,275      2,249,000
 Loans receivable                                    -              -                -               -              -

   Total receivables                         8,871,944         9,932,498    11,536,306       8,116,278       9,192,872

Due from other funds                          538,341         556,688          715,027         797,850         269,500
Prepaids and other                            271,471         264,259          234,220         271,756         150,000
Interfund advances receivable                 442,706         333,904          493,623         493,466         494,000
   TOTAL ASSETS                           $21,895,674     $21,364,398      $20,641,211     $27,115,659      28,064,029

LIABILITIES
 Accounts Payable                           $3,096,059      $4,792,812       $3,57,631       3,212,800       5,531,067
 Accrued Payroll Expenses                    1,252,287       1,421,272       1,559,609       1,777,590       1,866,840
 Deferred Revenues                           2,633,795       1,823,968       1,936,977       2,095,563       2,044,000
 Due to other funds                          2,310,257          38,838          69,622          37,343             307
 Advances due to other funds                         -               -               -               -               -
  TOTAL LIABILITIES                          9,292,398       8,076,890       7,136,839       7,123,296       9,442,214

FUND BALANCE
 Reserved for:
  Encumbrances                                  31,647          204,630         53,015          53,015           152,974
  Prepaids                                     271,471          264,259        234,220         271,756           150,631
  Capital Projects                                   -                -              -               -                 -
  Debt service                                       -                -              -               -                 -
  Advances                                     442,706          333,904        493,623         493,466           493,500
  Human services                                     -                -              -               -                 -
 Unreserved, reported in:
  General Fund                              11,857,452      12,484,715      12,723,514      19,174,126      17,824,710
  Special Revenue Funds                              -               -               -               -               -
  TOTAL FUND BALANCE                        12,603,276      13,287,508      13,504,372      19,992,363      18,621,815

TOTAL LIABILITIES
 & FUND BALANCE                           $21,895,674     $21,364,398      $20,641,211     $27,115,659    $28,064,029

Source: County of Washington, Pennsylvania, Primary Government Financial Statements and Supplementary and
Additional Information.




                                                         A-7
                              COUNTY OF WASHINGTON
           COMPARATIVE SUMMARY OF GENERAL FUND REVENUES, EXPENDITURES AND
                             CHANGES IN FUND BALANCES

                                                                                                 2011
   Year Ended December 31            2007           2008           2009           2010        (Unaudited)

REVENUE
Taxes                             $ 27,459,199   $ 28,450,459   $ 29,054,141   $ 34,653,646   $34,727,000
Intergovernmental                   18,826,223     19,181,365     19,807,290     19,686,021    18,272,000
Charges for Services                 7,368,984      8,826,806      8,786,503     10,027,942    10,497,000
Fines and Forfeits                     100,092        111,716        112,164        117,272       117,421
Interest                             1,008,838        561,528        123,605        200,809       116,954
Miscellaneous                        2,051,786      1,892,445      2,665,242      2,685,915     2,750,000
TOTAL REVENUE                       56,815,122     59,024,319     60,548,945     67,371,605    66,480,375

EXPENDITURES
General Government                  9,130,000      9,594,882      9,786,758      9,770,469       9,950,000
General Government Judicial         9,088,305      9,924,254     10,427,542     10,585,689      11,065,000
Public Safety                      13,147,168     14,115,697     14,988,727     14,620,862      14,900,000
Human Services                     16,802,656     17,462,023     16,513,528     15,531,947      16,400,000
Culture and Recreation                179,285        187,917        193,555        193,555         199,500
Conservation and Development          303,061        308,561        315,508        308,512         316,000
Other                               3,994,993      3,923,966      5,736,433      7,882,338       7,850,000
TOTAL EXPENDITURES                 52,645,468     55,517,300     57,962,051     58,893,372      60,680,500


Excess (Deficiency) of Revenues
Over Expenditures                   4,169,654      3,507,019      2,586,894      8,478,233       5,799,875

OTHER FINANCING
SOURCES/(USES)
Sale of Capital Assets                       -          7,362          3,592          5,060          5,577
Real Estate Refunds/Misc.                    -      (228,080)      (151,239)      (180,302)      (156,000)
Operating Transfers In                  67,035              -        160,117              -
Operating Transfers Out            (3,320,000)    (2.602,069)    (2,382,500)    (1,815,000)    (7,020,000)

TOTAL OTHER FINANCING
SOURCES (USES)                     (3,252,965)    (2,822,787)    (2,370,030)    (1,990,242)    (7,170,423)

Net Change in Fund Balance            916,689        684,232        216,864      6,487,991     (1,370,548)

Beginning Fund Balance             11,686,587     12,603,276     13,287,508     13,504,372      19,992,363

End-Of-Year Fund Balance          $12,603,276    $13,287,508    $13,504,372    $19,992,363    $18,621,815

   Source: County of Washington, Pennsylvania, Primary Government Financial Statements and Supplementary and
   Additional Information for years 2006 through 2010 and unaudited year-end financials for 2011.




                                                    A-8
                                                                  2012 BUDGET
                                                             COUNTY OF WASHINGTON

                               Total All                    Liquid Fuels    Other Special Revenue   Other Governmental
                            Budgeted Funds   General Fund    Tax Fund               Funds                  Funds         Proprietary Funds   Fiduciary Funds
Assets – January 1st
Fund Equity                  $14,600,000     $3,600,000        $235,000            $4,715,000           $2,400,000          $3,650,000        $100,550,000

Revenues and Other
Financing Sources

Taxes                         37,491,446     34,513,235               -                     -            2,978,211                   -                   -
Licenses and Permits              24,000         24,000               -                     -                    -                   -                   -
Intergovernmental Rev.       105,667,868     18,706,501       3,870,520            64,647,072              250,000          18,193,775                   -
Charges for Services          24,100,434      8,986,000               -             1,728,000                    -          13,386,434                   -
Fines and Forfeits               120,000        120,000               -                     -                    -                   -                   -
Misc. Revenues                 4,520,815      3,051,500           2,000                63,835            1,384,980              18,500          10,850,000
Other Financing Sources        9,764,000          6,000               -             1,178,000            7,980,000             600,000          10,285,000
                                                                                            -                    -                   -                   -
TOTAL REVENUES AND
OTHER FINANCING
SOURCES                      181,688,563     65,407,236       3,872,520            67,616,907           12,593,191          32,198,709          21,135,000

TOTAL AVAILABLE
FOR APPROPRIATION            196,288,563     69,007,236       4,107,520            72,331,907           14,993,191          35,848,709         121,685,000

Expenditures and Other
Fiinancing Uses

General Gov’t – all other     16,203,805     10,977,805               -                     -            5,226,000                   -                    -
General Gov’t – Judicial      15,043,915     11,767,177               -             3,056,738              220,000                   -                    -
Public Safety                 21,268,354     16,706,990               -               109,831               95,000           4,356,533                    -
Public Works                   4,204,788              -       3,954,788                     -              250,000                   -                    -
Human Services               108,199,350     17,730,796               -            62,191,579              474,150          27,802,825                    -
Culture and Recreation           745,493        205,493               -                     -              540,000                   -                    -
Conservation & Develop.          333,038        333,038               -                     -                    -                   -                    -
Debt Service                   4,008,158              -               -                     -            4,008,158                   -                    -
Misc. Expenditures             8,800,572      8,700,572               -                     -              100,000                   -            6,367,008
Other Financing Uses           3,072,662      2,470,000               -                     -               30,000             572,662            9,805,000

TOTAL EXPENDITURES
& OTHER FINANCING
USES                         181,880,135     68,891,871       3,954,788            65,358,148           10,943,308          32,732,020          16,172,008

ASSETS –December 31
FUND EQUITY                  $14,408,428      $115,365         $152,732            $6,973,759           $4,049,883          $3,116,689        $105,512,992




                                                                           A-9
                                                          COUNTY OF WASHINGTON
                                                     REAL PROPERTY ASSESSMENT DATA

Year                                                                          Market Value         Assessed Value              Ratio
2004 ...................................................................... $7,101,360,000         $1,330,178,598             18.73%
2005 ........................................................................ 7,262,557,900         1,356,407,817             18.68%
2006 ........................................................................ 8,127,451,400         1,386,958,989             17.07%
2007 ........................................................................ 8,396,225,600         1,423,831,330             16.96%
2008 ........................................................................ 9,368,889,000         1,454,885,184             15.53%
2009 ........................................................................ 9,621,253,400         1,487,945,733             15.46%
2010 ...................................................................... 10,193,284,922          1,521,758,777             14.92%
2011 ........................................................................ 8,797,276,793 (1)     1,540,678,948 (1)         17.51%
2012 ........................................................................ 8,912,898,766 (2)     1,560,648,574 (1)         17.51%
_____________________
Source: Pennsylvania State Tax Equalization Board.
(1) County Administrative Officials
(2) Estimated by application of prior year’s ratio

                                               COUNTY OF WASHINGTON
                                  REAL PROPERTY ASSESSMENT DATA BY SCHOOL DISTRICT

                                                     2009                          2009                 2010                 2010
           School District                        Market Value                Assessed Value         Market Value       Assessed Value
Avella Area                                          $169,178,200                   $22,192,049         $175,812,957        $22,371,901
Bentworth                                              304,536,700                    43,072,511         319,680,322         43,298,917
Bethlehem-Center                                       245,826,900                    34,779,998         250,478,151         34,805,561
Burgettstown Area                                      368,538,300                    49,042,540         375,603,042         49,228,133
California Area                                        241,090,900                    35,950,820         252,465,884         35,630,584
Canon-McMillan                                      1,949,252,100                   321,533,748        2,192,024,008        347,479,959
Charleroi Area                                         339,708,800                    58,239,590         340,211,380         57,732,954
Chartiers-Houston                                      404,183,700                    60,487,673         434,620,603         62,025,255
Fort Cherry                                            346,292,000                    45,107,575         364,370,761         45,578,270
McGuffey                                               657,191,500                    85,457,070         676,260,643         86,650,079
Peters Township                                     1,830,086,400                   310,449,018        1,943,754,522        315,151,423
Ringgold                                               910,922,000                  140,386,107          960,572,303        141,320,578
Trinity Area                                        1,410,797,100                   210,058,087        1,441,044,823        209,335,299
Washington                                             443,648,800                    71,188,947         466,385,523         71,149,864
Total                             $9,621,253,400                                $1,487,945,733       $10,193,284,922     $1,521,758,777
_____________
Source: Pennsylvania State Tax Equalization Board




                                                                                 A-10
                                          COUNTY OF WASHINGTON
                                       REALTY TAX COLLECTION BOARD
                                                                                                        Total
                                                                                                    Collections as
                                                                                  Total Tax          Percent of
        Year           Assessed Value    Total Millage         Tax Levy           Collected*        Current Levy
        2002             1,268,196,899       17.5              22,193,446         21,841,915            98.42%
        2003             1,289,429,796       17.5              22,565,021         21,888,070            97.00%
        2004             1,320,018,112       21.4              28,248,388         27,717,572            98.12%
        2005             1,353,989,541       21.4              28,975,376         28,571,819            98.61%
        2006             1,388,320,710       21.4              29,710,063         29,590,979            99.60%
        2007             1,433,538,774       21.4              30,677,729         30,229,200            98.54%
        2008             1,477,288,532       21.4              31,613,974         30,912,077            97.78%
        2009             1,513,571,464       21.4              32,390,429         31,780,013            98.12%
        2010             1,535,178,184       24.9              38,225,936         37,237,220            97.41%
        2011             1,540,678,948       24.9              38,362,906         36,872,405            96.11%
________________________
Source: County Administrative Officials.
* Includes delinquent collections.

                                        COUNTY OF WASHINGTON
                                 TEN LARGEST REAL PROPERTY TAXPAYERS

                  Taxpayer                                 Business/Industry                    2012 Assessed Value
Consol Pa. Coal Company                       Natural Gas and High BTU Coal Producer                $32,779,243
CCR Pennsylvania Racing Inc.(1)               Racetrack and Casino Industry                          20,057,420
Tanger Properties LP                          Shopping Mall                                           4,937,196
Wash. Crown Ctr. Assoc                        Shopping Mall                                           4,930,396
Beau St. Associates                           Residential Rental Property Management                  3,750,000
WPP LLC                                       Coal/Natural Gas                                        3,206,265
Gustine Wash. Assoc. LTD                      Retail/Commercial                                       2,877,220
Noll, Frank et al                             Individual                                              2,486,134
Wash. Senior Care Corp.                       Senior and Elder Care Services                          2,297,243
Southpointe Hotel and Conf. Ctr.              Hotel and Conf. Ctr.                                    2,193,048
TOTAL                                                                                               $79,514,165
____________________
Source: County Administrative Officials.
(1)
    Taxpayer has filed assessment appeal.

      The ten largest taxpayers represent 5.1% of the total assessed valuation of the County as of December 31, 2012.




                                                          A-11
General Description of the Area

       Washington County (the “County”) is located southwest of Pittsburgh, with its nearest boundary about 10 miles from
the City of Washington located on the western fringes of the Appalachian Plateau. The County is bordered on the west by
West Virginia, on the south by Greene County, and on the east by Westmoreland and Fayette Counties. The County is
857.0 square miles, with 242.5 persons per square mile. As of the 2000 Census, as reported by the Pennsylvania
Department of Labor and Industry, Center for Workforce Information and Analysis, approximately 63.1% of the County is
Urban and 36.9% is rural.

      The County is comprised of 68 political subdivisions, including two third-class cities, one first-class township, 32
second-class townships and 33 boroughs. At the present time, population in the County is approximately 207,820,
according to the 2010 Census of population.

Industry

       Washington County is a blending of business industry and agriculture. Today Washington County continues to grow
from an economy once based on traditional industries to a center of high technology and advanced manufacturing.
According to the Pennsylvania Department of Labor and Industry for 2009, there were approximately 77,928 employees
and as of the first quarter of 2009, an average weekly wage of $782 or $40,664 per year, assuming a 40 hour work week.
       Washington County is part of the Southwest Corner of Pennsylvania Workforce Investment Area (WIA) as
designated by the Pennsylvania Department of Labor and Industry. The following table shows the breakdown by industry
sector in Washington County for base year 2009.

Employment and Wages by Industry Sector(1)


                                                                   Approximate
                                                   Employer        Employment                          Pennsylvania
    Industry                                        Units            (2010)          County Wage          Wage
    Agriculture, Forestry, Fishing & Hunting          16                  97             $17,424           $28,341
    Mining                                            38               1,512               86,632           68,328
    Utilities                                         14                 529               80,385           94,454
    Construction                                     619               6,420               55,408           53,076
    Manufacturing                                    242               8,875               50,413           53,662
    Wholesale Trade                                  337               3,746               59,413           65,535
    Retail Trade                                     683               9,557               23,722           24,972
    Transportation                                   112               2,532               43,511           38,857
    Information                                       60               1,213               66,560           63,553
    Finance & Insurance                              277               2,140               55,365           72,020
    Real Estate & Rental & Leasing                   143               1,207               97,517           46,494
    Professional & Technical Services                397               2,488               62,611           77,575
    Management Of Companies &
    Enterprises                                           31              1,463           103,250           101,140
    Administrative & Waste Services                      230              2,758            31,034            31,113
    Educational Services                                  43                819            31,097            48,404
    Health Care & Social Assistance                      945             12,607            38,032            42,516
    Arts, Entertainment & Recreation                      73              2,514            22,320            28,034
    Accommodation & Food Services                        405              6,629            13,673            15,156
    Other Services, Except Public Admin.                 495              3,022            26,214            27,564
    Federal Government                                    66                586            49,294            64,532
    State Government                                      25              1,555            58,412            51,723
    Local Government                                     183              7,227            38,407            43,747
    Total All Industries(2)                            5,434             79,495           $42,459           $45,732
___________________
(1) 2010 Annual Average
(2) County total includes Private, Federal, State and Local Government


                                                          A-12
Economic Development

       Washington County maintains a stable base of taxes, reduced cost of living and development initiatives. Southpointe
development is home to the headquarters of Fortune 500 corporations Mylan and Consol Energy. It is also home to the
Penguins Hockey practice facilities at the Iceoplex at Southpointe. Range Resources has also located its headquarters in
Washington County for the purpose of exploration and development of Marcellus Shale gas. The Meadows Racetrack and
Casino has served as a focal point of retail development and gaming activity in the County. Meadows is the 4th highest
gross revenue producer of the ten casinos in Pennsylvania.

Employment Wage Statistics

        The table below shows estimated average wage information for Washington County, Pennsylvania for the 1st quarter,
2009:

                             Total Average          Average Hourly            Average Weekly      Average Annual
     Area Name               Employment                 Wage                      Wage                Wage
Washington County            77,199                   $19.55              $782                          $40,664
Pennsylvania             5,454,466                     21.53               861                           44,772
_________________
Source: Labor Market Statistics, Quarterly Census of Employment and Wages

Trends in Labor Force, Employment and Unemployment(1)

      The following chart shows recent trends in employment and unemployment for Washington County and the
Commonwealth of Pennsylvania. (Data in thousands)

                                       2007           2008           2009          2010        2011         2012(2)
Washington County
Civilian Labor Force (000)             103.8         106.2           106.2         105.4       107.0        108.2
 Employment (000)                       99.1         100.6            98.1          96.7        99.3        100.8
 Unemployment (000)                      4.7           5.6             8.1           8.7         7.8          7.4
 Unemployment Rate                       4.5%          5.2%            7.6%          8.2%        7.3%         6.8%

Pennsylvania
Civilian Labor Force (000)            6,330.0        6,441.0         6,414.0       6,340.0     6,386.0       6,406.0
 Employment (000)                     6,055.0        6,099.0         5,895.0       5,791.0     5,879.0       5,927.0
 Unemployment (000)                     275.0          342.0           519.0         549.0       507.0         479.0
 Unemployment Rate                        4.3%           5.3%            8.1%          8.7%        7.9%          7.5%
_____________________
Source: Pennsylvania Department of Labor and Industry
(1) Annual not seasonally adjusted labor force, employment and unemployment data
(2) As of March 2012




                                                              A-13
Employment

      Major employers located within the County include:

                                                                              Approximate Number
 Employer                                                 Business               of Employees
 Washington Hospital                       Health Care & Social Assistance           2,306
 Consol PA Coal Company                    Mining                                    1,784
 Meadows Casino                            Arts, Entertainment and Recreation        1,500
 Monongahela Valley Hospital               Health Care & Social Assistance           1,112
 Washington County                         Public Administration                     1,073
 Giant Eagle, Inc.                         Retail Trade                                887
 State System of Higher Education          Educational Services                        842
 Canon McMillan School District            Public Education                            638
 State Government                          Government                                  560
 Peters Township School District           Public Education                            524
__________________________
Source: Pennsylvania Department of Labor and Industry (L&I) Center for Workforce Information and Analysis, 4th
Quarter 2011 initial data; and County Administrative Officials.

        Other major regional employers located in close proximity to the County include:

                                                                                    Approximate Number
 Employer                                                   Business                   of Employees
 University of Pittsburgh Medical Ctr.       Health Care                                   37,000
 United States Government                    Federal Government                            18,660
 Commonwealth of Pennsylvania                State Government                              13,661
 West Penn Allegheny Health System           Health Care                                   11,432
 University of Pittsburgh                    Educational Services                          11,261
 Wal-Mart Stores                             Retail Trade                                  10,030
 PNC Financial Services Group Inc.           Banking and Financial Services                 9,150
 Giant Eagle Inc.                            Retail Trade                                   8,347
 Allegheny County                            Government                                     7,194
 The Bank of New York Mellon                 Banking and Financial Services                 6,668

Population

        The following table shows recent population trends for the County of Washington and the Commonwealth of
Pennsylvania:

                                       1970             1980            1990            2000              2010
Washington County                    210,876         217,074        204,584          202,897           207,820
Commonwealth of Pennsylvania     11,800,766       11,864,751     11,881,643       12,281,054        12,702,379
_______________
Source: U.S. Department of Commerce, Bureau of the Census; Pennsylvania State Data Center.




                                                           A-14
Age Composition

        A breakdown of age composition for the County of Washington and the Commonwealth of Pennsylvania is
provided below:

                                                                        Population                    Population 65
                                               Total         Median        Under      Population          Years
                                             Population       Age        18 Years     18-64 Years       and Over
Washington County ........................      207,820       43.6         42,684        128,770           36,366
Commonwealth of Pennsylvania ....            12,702,379       40.1      2,792,155      7,950,917        1,959,307
____________
Source: U.S. Census Bureau, American FactFinder; Age Groups and Sex: 2010 – 2010 Census Summary File 1; QT-P1


Social and Economic Characteristics
                                                                           Median
                                       Average             Average        Household    Median Family        Per Capita
                                     Household Size       Family Size     Income(1)      Income             Income(1)
Washington County .............          2.42                2.99           49,687        63,690             26,045
Pennsylvania .......................     2.47                3.06           50,398        63,364             27,049
___________________
Source: U.S. Census Bureau, American FactFinder, Selected Economic Characteristics 2006-2010 American Community
Survey 5 Year Estimates – File DP02 and DP03

Occupied Housing Units

        A description of housing units for the City, Washington County and the Commonwealth of Pennsylvania is
provided below:
                                                             Occupied Housing Units           Average
                                     Housing                                     Median      Household
                                       Units          Total        Owner          Value        Size
Washington County                      92,469         83,604        64,597       130,300       2.55
Pennsylvania                        5,568,820      4,936,030     3,461,678       165,500       2.61
____________
Source: American FactFinder, 2010 American Community Survey 1 Year Estimates, Selected Housing Characteristics
DP04; 2010 Census Summary File 1 - Household Population and Household Type by Tenure 2010 – QT-H3.

Medical Facilities

         There are three general service hospitals located in Washington County. Washington Hospital, located in the City
of Washington, provides 239 beds and is a teaching hospital with an approved residency program and a professional School
of Nursing and School of X-Ray Technology. Canonsburg General Hospital, part of WestPenn Allegheny Health System,
provides 120 beds in the northern section of the County and has recently completed construction of a new facility in North
Strabane. The Mon Valley Hospital, an acute care hospital in Carroll Township is part of the Mon Valley Hospital System.
The 226-bed facility replaced two local acute care facilities.

Transportation

          There is a variety of transportation in Washington County, including a network of highways totaling 2,821 miles,
which makes overnight travel possible to most cities of the east and midwest. The County is also served by three railroads
and two shortlines, as well as 19 trucking companies based in the County, and three bus lines and three taxi companies.
Four airports are located in the County, including the Washington County Airport, which serves as a reliever for other
airports and is home to 100 aircraft, 37 T-hangars, seven businesses and seven corporate hangars. The airport has a partial
electronic guidance system for its 5,000 foot runway.




                                                                A-15
       The Pennsylvania Department of Transportation has completed construction of LR1099; a link from Route 70 to
the Monongahela Valley. The Monongahela Valley Expressway leads to the Pittsburgh Metropolitan Area from
Morgantown, West Virginia.

Educational Facilities

         There are 14 public school districts located within the County (student population approximately 31,000), as well
as several private and parochial schools (student population approximately 2,200). The County also has two colleges:
Washington and Jefferson College with a student enrollment of 1,519, and California University of Pennsylvania, a
member of the Pennsylvania State System of Higher Education, with a student enrollment of 9,400. Both offer
undergraduate and post-graduate studies. In addition, several trade and business schools are located within the County.

Police and Fire Protection

         Police protection is provided in every municipality by either a local department or the Pennsylvania State Police.
Fifty-two communities within the County have their own volunteer fire department, and service and mutual-aid agreements
provide fire protection to smaller communities. The City of Washington maintains its own full-time paid fire department.

                          DEBT OF THE COUNTY – COUNTY BORROWING CAPACITY

         The borrowing capacity of the County is regulated by the Act. The Act has established debt limitations for local
government units, including counties. Under the Act, the County may incur debt in an unlimited amount when such debt is
approved by a majority of the electorate of the County at either a general or special election. Non-electoral debt, or debt
not approved by the electorate, may not exceed 300% of the Borrowing Base of the County, as that term is defined in the
Act, after the deduction of any authorized exclusion. The aggregate net lease rental debt plus non-electoral debt incurred on
behalf of the County may not exceed 400% of the Borrowing Base after the deduction of authorized exclusions from lease
rentals and non-electoral debt. The Borrowing Base of the County is shown below.

     In determining compliance with the Act, the relationship of debt to adjusted revenues received over the most recent
three years is used. The foregoing is a calculation of the current “Borrowing Base”, which is the arithmetic average of the
total revenues of the County, including tax revenues for debt service not reflected in the General Fund, and after
adjustments by the exclusion of certain subsidies, reimbursements, pledged revenues and non-recurring items.

Calculation of Borrowing Base

                                                                                                         2011
Fiscal Year Ending December 31:                            2009                     2010              (unaudited)

Total Revenue received from
 all sources                                           $175,225,311           $172,159,717           $173,971,000
Less:
(1) State and Federal subsidies and
      reimbursements related to a
      particular project financed by debt                          0                       0                      0
(2) Revenues, receipts, assessments
      pledged for self-liquidating debt                   4,137,722               3,870,364              3,857,592
(3) Interest earnings on sinking funds                        9,256                   2,373                    626
(4) Grants and gifts in aid                              79,834,386              68,167,341             69,273,858
(5) Nonrecurring receipts                                     3,592                   5,060                  5,577

SUBTOTAL                                                $91,240,355           $100,114,579           $100,833,347

Total Net Revenues for the
three years ended December 31, 2011                                           $292,188,281

Borrowing Base - Total Net Revenues
Divided by 3                                                                    $97,396,094
____________
Source: County Officials

                                                           A-16
Borrowing Capacity
                                                                                            Nonelectoral and Lease
                                                     Nonelectoral Debt                           Rental Debt
Gross Borrowing Capacity                            $292,188,282.00 (1)                       $389,584,376.00 (2)
Principal Amount of Debt After Issuance
of the Bonds                                           49,385,219.50*                            51,889,526.05*
Less – Debt Certified as Self-Liquidating                          -                                        -
Net Outstanding Debt After Issuance of
the Bonds                                              49,385,219.50*                            51,889,526.05*
Remaining Borrowing Capacity After
Issuance of the Bonds                               $242,803,062.50*                          $337,694,849.95*
_________________________
*Estimated, subject to change.
(1) 300% of Borrowing Base
(2) 400% of Borrowing Base

          In addition, a County may utilize an additional debt limit of 100 percent of the Borrowing Base for additional non-
electoral or additional lease rental debt, or both, if the County has assumed county-wide responsibility for hospitals and
other public health services, air and water pollution control, flood control, environmental protection, water distribution and
supply systems, sewage and refuse collection and disposal systems, education at any level, highways, public transportation
or port operations, but such additional debt limit may be so utilized only to provide funds for and towards the cost of capital
facilities for any or any combination of the foregoing purposes. Debt, other than electoral debt, at any time incurred for
such purposes or any of them, may be assigned by ordinance to this additional debt limit, if the remaining borrowing
capacity within the regular limits is insufficient to finance other projects deemed necessary by the Board of County
Commissioners.

                                          COUNTY OF WASHINGTON
                                     OUTSTANDING BONDED INDEBTEDNESS


Outstanding Debt Prior to Issuance of the Bonds
                                                    Final              Original Amount             Outstanding
            Bond/Note Issue                        Maturity                of Issue                 Principal
G.O. Bonds and Notes (Non-Electoral)
   G.O. Note, Series of 2002                        9/1/2016            $      600,000.00          $      240,000.00
   G.O. Bonds, Series of 2002A                      9/1/2027                13,925,000.00              11,780,000.00
   G.O. Bonds, Series of 2003                       9/1/2022                 8,125,000.00               4,800,000.00
   G.O. Bonds, Series of 2003A                      9/1/2022                 8,305,000.00               4,745,000.00
   G.O. Bonds, Series of 2007A
   (CABS and CIBS)                                  9/1/2032             14,535,219.50              14,235,219.50
   G.O. Bonds, Series of 2007B (CIBS)               9/1/2029             4,095,000.00(1)             3,365,000.00(1)
Total G.O. Bonds and Notes                                              $49,585,219.50             $39,165,219.50

Revenue Bonds and Notes (Non-Electoral)

   Gtd. Lease Revenue Bonds, Series of
   1992 (Washington County Authority)
    (CABS)                                          9/1/2020            $17,162,970.20                 $2,504,306.55

Total Revenue Bonds and Notes                                           $17,162,970.20                 $2,504,306.55

Total Outstanding Non-Electoral and
Lease Rental Debt Before Issuance of the
Bonds                                                                 $66,748,189.70               $41,669,526.05
______________
Source: DCED Debt Statement as of 4/1/2012
 (1) Debt Service is self-supporting from contributions of participating municipalities.

                                                            A-17
                                          COUNTY OF WASHINGTON
                                     OUTSTANDING BONDED INDEBTEDNESS

Outstanding Debt After Issuance of the Bonds*
                                                                   Original Amount
           Bond/Note Issue                   Final Maturity            of Issue            Outstanding Principal

G.O. Bonds and Notes (Non-Electoral)
   G.O. Note, Series of 2002                    9/1/2016            $ 600,000.00              $ 240,000.00
   G.O. Bonds, Series of 2002A                  9/1/2027            13,925,000.00                      0.00
   G.O. Bonds, Series of 2003                   9/1/2022             8,125,000.00              4,800,000.00
   G.O. Bonds, Series of 2003A                  9/1/2022             8,305,000.00              4,745,000.00
   G.O. Bonds, Series of 2007A
   (CABS & CIBS)                                9/1/2032             14,535,219.50            14,235,219.50
   G.O. Bonds, Series of 2007B
   (CIBS)                                       9/1/2029              4,095,000.00(1)          3,365,000.00(1)
   G.O. Bonds (Federally Taxable),
  Series A of 2012                              9/1/2013              4,500,000.00*            4,500,000.00*
   G.O. Bonds, Series B of 2012                 9/1/2033             17,500,000.00*           17,500,000.00*

Total G.O. Bonds and Notes                                         $71,585,219.50*           $49,385,219.50*

Revenue Bonds and Notes (Non-
Electoral)

   Gtd. Lease Revenue Bonds, Series
   of 1992 (Washington County
   Authority) (CABS)                            9/1/2020           $17,162,970.20             $2,504,306.55

Total Revenue Bonds and Notes                                      $17,162,970.20             $2,504,306.55

Total Outstanding Non-Electoral and
Lease Rental Debt After Issuance of                                 $88,748,189.70*          $51,889,526.05*
the Bonds
_________________
 (1) Debt Service is self-supporting from contributions of participating municipalities.
* Estimated, subject to change.




                                                            A-18
                                            SUMMARY OF FINANCIAL FACTORS


Market Value of Taxable Real Estate – 2011(1) ................................................................. $ 8,912,898,766
Assessed Valuation of Taxable Real Estate – 2011(1) ........................................................ $ 1,560,648,574
Ratio of Assessed Valuation to Market Value ....................................................................        17.51%

Population
   2000 U.S. Census .........................................................................................................            202,897
   2010 U.S. Census .........................................................................................................            207,820

Direct Debt(2):
    General Obligation Bonds ............................................................................................ $            49,385,219
    Lease Rental Debt ........................................................................................................ $        2,504,306
    Total Direct Debt .......................................................................................................... $     51,889,526*

Total Direct Debt
     Less: Self-Liquidating Debt ......................................................................................... $                   -0-
     Total Net Direct Debt ................................................................................................... $       51,889,526*

Ratio of Net Direct Debt to:
     Market Value of Real Estate...........................................................................................                 .58%
     Assessed Valuation of Real Estate .................................................................................                   3.32%
     Population (2010) ........................................................................................................... $          249

Overlapping Debt
   School District – General Obligation and Lease Rental(3)(4) ........................................... $ 300,417,297
   Municipal Debt _ General Obligation and Lease Rental(4) ............................................. $ 181,294,467
               Total Overlapping Debt .............................................................................. $ 481,711,764

Total Net Direct and Overlapping Debt (Total Debt) ........................................................... $ 533,601,290*

Ratio of Total Debt to:
    Market Value of Taxable Real Estate – 2011 .................................................................                           5.99%
    Assessed Valuation of Taxable Real Estate – 2011 .......................................................                              34.19%
    Population (2010) ........................................................................................................... $         2,567

Ratio of Population (2010) to:
    Market Value of Real Estate........................................................................................... $              47,750
    Assessed Valuation of Real Estate ................................................................................. $                  7,387
_____________
*Estimated, subject to change
(1) Source: County Officials.
(2) Includes the Series of 2012 Bonds and original issue amount of outstanding capital appreciation bonds as
     reported by the Pennsylvania Department of Community and Economic Development (DCED) on 4/1/12.
(3) Estimated school district debt, net of state subsidy.
(4) Source: DCED as of April 1, 2012.




                                                                         A-19
[THIS PAGE INTENTIONALLY LEFT BLANK]
            APPENDIX B


 COUNTY’S ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2010
[THIS PAGE INTENTIONALLY LEFT BLANK]
County of Washington,
    Pennsylvania

     Single Audit

        2010




                        MaherDuessel
                         Certified PublicAccountants




               Pursuing the profession while promoting the public good~
                                                  www.md-cpas .com
[ THIS PAGE INTENTIONALLY LEFT BLANK ]
    COUNTY OF WASHINGTON, PENNSYLVANIA
                              2010 SINGLE AUDIT

                                   DIRECTORY


Independent Auditor's Report


Management's Discussion and Analysis


Primary Government Financial Statements:

  Table of Contents

  Primary Government Financial Statements                           1

  Required Supplementary Information                                55


Supplementary Information:

  Combining and Individual Fund Financial Statements                60

  Grants and Program Information                                    73

  Schedule of Expenditures of Federal Awards                        83

  Notes to Schedule of Expenditures of Federal Awards               85

  Schedule of Department of Public Welfare Financial Assistance     86


DPW-Funded Financial Assistance Program Exhibits:

  Independent Accountant's Report on "Agreed-Upon Procedures" for
    Department of Public Welfare Funded Financial Assistance
    Programs, Schedules, and Exhibits                               87

  Exhibits                                                          89
    COUNTY OF WASHINGTON, PENNSYLVANIA
                              2010 SINGLE AUDIT

                                  DIRECTORY
                                     (Continued)


Independent Auditor's Reports in Accordance with OMB
 Circular A-133:

  Independent Auditor's Report on Internal Control over Financial
    Reporting and on Compliance and Other Matters Based on an
    Audit of Primary Government Financial Statements Performed in
    Accordance with Government Auditing Standards                   118

  Independent Auditor's Report on Compliance with Requirements
    that Could Have a Direct and Material Effect on Each Major
    Federal and Pennsylvania Department of Public Welfare (DPW)
    Program and on Internal Control over Compliance in Accordance
    with OMB Circular A-133 and the DPW Compliance Supplement       120

  Schedule of Findings and Questioned Costs                         122

  Summary Schedule of Prior Audit Findings                          124
                                           Pittsburgh                Harrisburg                  Butler
                                           Three Gateway Center      3003 North Front Street     112 Hollywood Drive
                                           Six West                  Suite 101                   Su ite 204

~aJIerl)llessel
                                           Pittsburgh, PA 15222      Harrisburg, PA 17110        Butler, PA 16001
                                           Main 412.471.5500         Main 717.232.1230           Main 724.285.6800
Certified Public Accountants               Fax    412.471.5508       Fax   717.232.8230          Fax     724.285.6875




                                       Independent Auditor' s Report


Board of County Commissioners
County Controller
County of Washington, Pennsylvania

We have audited the accompanying primary government financial statements (financial statements) of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining fund
information of the County of Washington, Pennsylvania (County), as of and for the year ended December
31, 2010, which collectively comprise the basic financial statements of the County's primary government
as listed in the table of contents. These financial statements are the responsibility of the County's
management. 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 the Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements . An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.

The financial statements referred to above include only the primary government of the County, which
consists of all funds, organizations, institutions, agencies, departments, and offices that comprise the
County's legal entity. The financial statements do not include financial data for the County's legally
separate component units, which accounting principles generally accepted in the United States of America
require to be reported with the financial data of the County's primary government. As a result, the
financial statements do not purport to, and do not, present fairly the financial position of the reporting
entity of the County, as of December 31, 2010, and the changes in its financial position, and its cash
flows, where applicable, for the year then ended in conformity with accounting principles generally
accepted in the United States of America.

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 for the primary government of the County, as of December
31, 2010, and the respective changes in financial position and cash flows, where applicable, thereof and
the respective budgetary comparison for the General Fund, the Health Choices, Mental Health/Mental
Retardation, and Human Services Special Revenue Funds, and Debt Service Fund for the year then ended
in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards , we have also issued our report dated July 272011 ,
2011 on our consideration of the County'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 the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in

                                                             Pursuing the profession while promoting the public good"
                                                                                                www.md-cpas.com
Board of County Commissioners
County Controller
County of Washington, Pennsylvania
Independent Auditor's Report
Page Two


accordance with Government Auditing Standards and should be considered in assessing the results of our
audit.

Accounting principles generally accepted in the United States of America require that the management' s
discussion and analysis, the pension information, and OPEB information on pages i through xi and 55
through 58, respectively, 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 pali 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.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County's financial statements as a whole. The supplementary information listed is
presented for the purpose of additional analysis and is not a required part of the financial statements. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis
as required by the U.S. Office of Management and Budget Circular A-133 , Audits of States, Local
Governments, and Non-Profit Organizations, and is also not a required part of the financial statements.
Similarly, the accompanying schedule of Department of Public Welfare expenditures is presented for
purposes of additional analysis as required by the Commonwealth of Pennsylvania Department of Public
Welfare and is not a required part of the financial statements. The supplementary information is the
responsibility of management and was derived from and relate directly to the underlying accounting and
other records used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the financial statements or to the 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 financial statements
as a whole.



Pittsburgh, Pennsylvania
July 27, 2011
                            Management's Discussion and Analysis

The following Management's Discussion and Analysis (MD&A) of Washington County's
(County) financial statements provides an overview of the financial performance for the year
ended December 31 , 2010. It is recommended that it be read in conjunction with the basic
financial statements and the accompanying notes to those statements.

The MD&A is designed to focus on the current year's activities and resulting changes in the
County's financial position.

Financial Highlights

The General Fund reported an ending fund balance of $19,992,363, an increase of $6,487,991
from 2009.

The County had $50,212,369 of general obligation debt as of December 31, 2010.              This
represents a decrease of $1 ,506,126 from 2009.

The County had $19.6 million in unrestricted net assets as of December 31, 2010, an increase of
$2.8 million from the previous year.

The County has a bond rating of A+ from Standard & Poor's.

The County's real estate millage increased from 21.4 mills to 24.9 mills.

Overview of the Financial Statements

The MD&A is intended to serve as an introduction to the County's basic financial statements,
which consist of three components:

   1) Governmentwide financial statements
   2) Fund financial statements
   3) Notes to the financial statements

The basic financial statements present two different views of the County and will be explained in
more detail later in this narrative. In addition to the basic financial statements, this report
contains other supplemental information that will enhance the reader's understanding of the
financial condition of the County.

Government-wide Financial Statements

Government-wide financial statements provide information on governmental and business-type
activities in a manner similar to the private sector. The two government-wide financial
statements are the Statement of Net Assets and the Statement of Activities. Fiduciary activities,
whose resources are not available to finance County programs, are excluded from these
statements.



                                                 1
The Statement of Net Assets presents all of the County's assets and liabilities, recording the
difference between the two as net assets. Over time, increases or decreases in net assets measure
whether the County's financial position is improving or deteriorating.

The Statement of Activities presents information showing how the County's net assets changed
during 2010. Because it separates program revenue from general revenue, it shows to what
extent each program relies on real estate taxes, charges for services, and intergovernmental
revenues for funding.

All changes in net assets are reported using the accrual basis of accounting, similar to the method
used by most private-sector companies. The accrual basis of accounting requires that revenues
be reported when they are earned and expenses when goods and services are received.

Both statements report the following activities:

Governmental Activities - Most of the County's basic services are in this category, including
General Government, Judicial, Public Safety and Human Services. Real estate taxes, charges for
services, and intergovernmental revenue primarily fund these programs.

Business-type Activities - These include the County Health Center and 911 operations, and
intend to recover their costs of operations primarily through user charges.

Fund Financial Statements

Fund financial statements provide more detailed information about the County's funds with an
emphasis on major funds, not the County as a whole. A fund is a group of related accounts used
to maintain control over resources that have been segregated for specific activities.

The County has three types of funds:

Governmental Funds: These funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund statements focus on expendable
resources available at the end of the year.

Governmental fund statements provide a detailed short-term View of financial resources
available in the near future to finance County programs.

The County maintains a multitude of individual governmental funds. The following are listed as
maj or funds:
                       General Fund
                       Health Choices Fund
                       Mental Health/Mental Retardation Fund
                       Human Services Fund
                       Debt Service Fund




                                                   11
These have been identified as major funds based on criteria set forth in Governmental
Accounting Standards Board (GASB) Statement No. 34. Financial data for remaining
governmental funds are combined into a single presentation labeled Other Governmental Funds.

Proprietary Funds: Proprietary funds are financed and operated in a manner similar to private
business enterprises in which costs are recovered primarily through user charges. The type of
proprietary fund that the County uses for its Health Center and 911 operations is an Enterprise
Fund.

Fiduciary Funds: The County is the trustee, or fiduciary, for its employees' pension plan. In
addition, the County is also responsible for agency funds, which represent clearing accounts for
assets held by the County in its role as custodian until funds are allocated to private parties,
organizations, or government agencies to which they belong. Fiduciary activities are reported in
a similar manner to proprietary funds in a Statement of Fiduciary Net Assets and a Statement of
Changes in Fiduciary Net Assets. All fiduciary activities are excluded from the County's
government-wide financial statements because the assets of these funds are not available to
support County programs.

Notes to the Financial Statements
Notes to the basic financial statements provide additional information essential to a full
understanding of the detail provided in the government-wide and fund financial statements. The
notes begin on page 17 of this report.

Required Supplementary Information
Following the basic financial statements is additional Required Supplementary Information (RSI)
that further explains and supports information in the financial statements.




                                               111
Government-wide Statement of Net Assets

The following table summarizes the Statement of Net Assets as of December 31, 2010, and
compares it to 2009.

                                      Summary of Net Assets

                                             Governmental Activities                       Business-tvI1e Activ ities
                                          20 10                   2009                  20 10                      2009
Assets:
  Current and other assets            $   45 ,414, 153        $    39,014 ,925      $   10,837,015          $           9,7 15,8 11
  Capital assets                          57,945,718               59,448 , 124         12,440 ,833                 13,020,99 1
  Total Assets                        $   103,359,871         $    98,463 ,049      $   23 ,277,848         $       22,736,802


Liabilities:
  Current liabilities                 $   2 1,656,812         $    17,639, 123      $     7,021,478         $           5,916,022
  Other li abilities                      46,3 11 ,864             47,56 1,803             460,000                        675,000
  Tota l Liabilities                       67,968 ,676             65,2 00 ,926           7,48 1,478                    6,591 ,022


Net Assets:
  Invested in capital assets, net
    of related debt                        11 ,756,579             12, 19 0,694          11 ,765,833                12,140,991
  Restricted                                4,029 ,078                 4,249, 165
  Unrestricted                             19,605,538              16,822,264             4,030 ,537                    4,004,789
  Tota l Liabilities and Net Assets   $   103,359,87 1        $    98,463 ,049      $    23 ,277,848        $       22,736,802



NET ASSETS:

For 2010, net assets of governmental actiVIties increased by $3,002,762 to $35,391 ,195.
Unrestricted net assets, funds available for operations or payment of long-term debt, increased by
$2,783 ,274.

Infrastructure Assets

Washington County's total assets at December 31 , 2010 were $126,637,719. Of this amount,
$70,386,551 is in capital assets, which includes infrastructure. Historically, infrastructure has
not been reported or depreciated in governmental financial statements.

GASB Statement No. 34 requires that all capital assets, including infrastructure, be valued and
reported within the governmental activities column of the government-wide financial statement.
This statement does permit reporting in two stages. Prospective reporting of infrastructure
(Stage #1) is required during the first year, with retroactive reporting (Stage #2) required by the
year ended December 31, 2006. The County elected to implement both Stage # 1 and Stage #2 in
2003.




                                                         IV
                                   Summary of Changes in Net Assets
                            For the Years Ended December 31, 2010 and 2009

                                               Governmental Activities              Business-type Activities
                                               2010              2009               2010              2009
Revenues:
 Program Revenues:
  Charges for services                    $   10,582,770     $    9,591 ,123     $ 27,434,442      $ 25 ,762,926
  Operating grants and contributions          83 , 166,699       95 ,992,164          637,424
  Capital grants and contributions             1,676 ,822         2,762,909         2,195,519          3,605 ,861

 General Revenues:
  Property taxes                               37,661 ,517        32,064,316
  Investment earnings                             281 ,783           227,179            24,285            49,755
  Reimbursed expenses                           1,974,781          1,747,785
  Miscellaneous                                 3,009,633          2,222,063
       Total Revenues                         138,354,005        144,607,539       30,291 ,670        29,418 ,542


Expenses:
  General Government                           19,610,066         14,951 ,256
  Judicial                                     14,041 ,582        14,798,246
  Public Safety                                15 ,817,893        17,095,393         4,729,603         5,164,041
  Public Works                                  1,775 ,961         1,567,194
  Human Services                               80,204,904         92,587,087        26,411 ,477       24,097,578
  Culture and Recreation                           619,154           284,996
  Conservation and Development                     196,840         2,750,386
  Interest on long-term debt                    2,584,843          2,646,145
        Total Expenses                        134,851 ,243       146,680,703        31 ,141 ,080      29,261 ,619

Excess (deficiency) of revenues over            3,502,762         (2,073 ,164)        (849,410)          156,923
  expenses before transfers


Transfers                                        (500,000)          (812,500)          500,000           812,500
Change in Net Assets                            3,002,762         (2,885 ,664)        (349,410)          969,423

Net assets - beginning (restated)              32,388,433         35,274,097       16,145,780        15,176,357
Net assets - ending                       $    35,391 ,195   $    32,388,433     $ 15,796,370      $ 16,145,780




                                                       v
Governmental Activities

The following chart shows the composition of revenues for the year ended December 31, 2010:




Total governmentwide revenues of $138.4 million were derived primarily from program-based
operating grants, representing 59.60% of the total. Real estate taxes made up the second largest
source of revenue at 27.22%.




                                               vi
The following chart graphically depicts the governmentwide program expenses for the year
ended December 31, 2010:




                                 Program Expenses
                             Total Expenses: $134.9 million
                                            Human Services
                                               59.48%




                                                                            Culture & Recreation
                                                                                    .46%




                                                                                         Interest on
          Judicial                                                                     long-term debt
                                                                                           1.91%
          10.41 % Public Works
                                                                       Public Safety
                     1.32%
                                                                         11.73%
                                 Conservation &   General Government
                                  Development           14.54%
                                     .15%




                                                    Vll
Net Cost of Government Activities

The following table presents a summary of expenses, program revenues and the net cost of
services before taxes, investment earnings and other income. Total expenses were $134.9
million with a net cost of services of $39.4 million.


                     Net Cost of Washington County’s Governmental Activities
                         For the Years Ended December 31, 2010 and 2009

                                         Expenses                  Program revenues          Net cost of services

                                  2010              2009          2010          2009         2010           2009

General Government               19,610,066     14,951,256       3,744,434     2,817,897   15,865,632     12,133,359

Judicial                         14,041,582     14,798,246       6,842,156     6,825,011    7,199,426      7,973,235

Public Safety                    15,817,893     17,095,393       1,668,655     1,542,244   14,149,238     15,553,149

Public Works                      1,775,961         1,567,194    1,255,084     2,834,360     520,877       (1,267,166)

Human Services                   80,204,904     92,587,087      81,343,705    94,122,475   (1,138,801)     (1,535,388)

Culture and Recreation             619,154           284,996      246,775       151,581      372,379         133,415

Conservation and Development       196,840          2,750,386     325,482        52,628      (128,642)     2,697,758

Debt service                      2,584,843         2,646,145            0             0    2,584,843      2,646,145




           Totals               134,851,243    146,680,703      95,426,291   108,346,196   39,424,952     38,334,507


Financial Analysis of County's Funds

The County uses fund accounting to ensure compliance with finance-related legal requirements.

Governmental Funds

For the year ended December 31, 2010, Washington County had combined ending fund balances
of $28,772,277, an increase of $6,124,792 from 2009.

The following funds made up the County's major funds for 2010:

                     General Fund
                     Mental Health/Mental Retardation Fund
                     Health Choices Fund
                     Debt Service Fund
                     Human Services Fund


                                                      viii
The General Fund is the chief operating fund of the County. Unless otherwise required by
statute, contractual agreement, or policy, all County revenues and expenditures are recorded in
the General Fund. At the end of 2010, the total General Fund balance was $19,992,363, an
increase of $6,487,991 from 2009. An increase in real estate tax revenues and charges for
services were the primary causes for the increase in fund balance.

General Fund revenues increased by $6,822,660 during 2010, from $60,548,945 to $67,371 ,605 ,
while expenditures in the fund increased from $57,962,051 to $58 ,893 ,372. Health insurance
and pension-related costs were the two largest increases.

The Health Choices program was designed to introduce an integrated and coordinated health care
delivery system to serve medical assistance recipients requiring medical, psychiatric, and
substance abuse services through a capitated, mandatory managed-care program. The Health
Choices Fund had a year-end balance of$3,313 ,026, an increase of$55,216 from 2009.

The Mental Health/Mental Retardation special revenue fund had a year-end balance of $0. All
funds received were expended to provide services to MH/MR clients. Revenues in this fund
decreased to $11,854,326 from $26,875 ,610 and expenditures decreased from $27,245,610 to
$12,224,326. Beginning with fiscal year 2009-2010, the Pennsylvania Department of Public
Welfare stopped allocating Mental Retardation waiver funds to the counties and began making
direct payments to providers.

The Human Services Fund provides social services to eligible County residents and is funded by
state and federal grants. The 2010 fund balance decreased by $275,303 to $716,052.

The Debt Service Fund is used for the payment of long-term debt not associated with the
proprietary funds. The year-end fund balance decreased by $127,597 to $1,722,937.

Proprietary Fund

The County maintains two proprietary funds, both Enterprise Funds, to finance the County
Health Center and 911 operations. These Enterprise Funds provide the same type of information
found in government-wide financial statements, but in greater detail.

Total net assets of the Washington County Health Center at December 31, 2010 were
$9,936,298, an increase of $917,120 from 2009. The facility had an operating loss of $347,918
for 2010. The occupancy rate was over 93% in the 288-bed facility.

Total net assets of Emergency Communication 911 operations were $5,860,072, a decrease of
$1 ,266,530 from 2009. The decrease was a result of a significant reduction in grant funds from
the previous year.




                                               IX
     GENERAL FUND BUDGETARY HIGHLIGHTS

     General Fund Changes in Budget

    This section summarizes the major factors involved in the variances in revenue and expenditure
    budgets. Variances are between the original and final amended budget and the final amended
    budget and actual General Fund amounts.

    The annual budget is adopted in accordance with the County Code of the Commonwealth of
    Pennsylvania. Budgets are adopted on a departmental basis. During the course of the year,
    circumstances may occur which require a departmental budget to be increased. The Board of
    Commissioners, at a public meeting, must approve any adjustment that changes a department's
    total budget.

    Expenditures and Other Financing Uses Variances

    At the final meeting of the year, $150,000 was allocated to departments anticipated to exceed
    their original budgets. Of this amount, the largest adjustment was for workers compensation
    costs. The overall variance between the actual expenditures and the final budget was a positive
    variance of$3,530,107.

    Revenue Variances

    Variances between actual revenue and budgeted revenue for the year reflected a posltIve
    variance in the amount of $2,882,885. This was due to increases in real estate tax collections and
    charges for services.

    Capital Assets and Debt Administration

    The County's investment in capital assets, net of accumulated depreciation, amounted to
    $70,386,551 as of December 31 , 2010.

                                                  Summary of Capital Assets

                                           Governmental Activities             Business-type Activities          Balances as of December 31
                                           2010             2009               2010              2009              2010              2009

Land and improvements                 $    3,759,301    $    4,189,266     $                 $               $    3,759,301     $    4,189,266
Buildings and improvements                25,683,780        26,337,418         4,834,525         5,015,340       30,518,305         31 ,352,758
Furniture, fixtures , and equipment        5,615,064         5,788,746         6,884,579         7,886,728       12,499,643         13,675,474
Infrastructure                            21 ,244,098       21 ,725 ,619                                         21 ,244,098        21 ,725,619
Construction in progress                   1,643,475         1,407,075           721 ,729          118,923        2,365,204          1,525,998

  Total                               $ 57,945,718      $ 59,448,124       $ 12,440,833      $ 13,020,991    $ 70,386,551       $ 72,469, 115




                                                                      x
Highlights of amounts expended in 2010 for major capital assets include:

          •    $600,000 for renovations to County Buildings.

          •    $706,000 for new rehabilitation center at the County Health Center.

          •    $400,000 for improvements to the County Parks.

          •    $171,000 for improvements to County Bridges.

Long-Term Debt

As of December 31 , 2010, the County had outstanding debt of$50,212,369. This was a decrease
of $2,036,436 from the previous year.

Outstanding Debt as of December 31, 2010 and 2009

                               Govemmental Activities                Business-type Activities                  Totals
                               20 10           2009                  2010              2009            2010             2009
General obligation bonds   $ 39,601 ,647    $ 40,171 ,218        $    675,000      $     880,000   $ 40,276,647     $ 41 ,051 ,218
Lease rental debt             9,935,722       10,667,277                                              9,935 ,722      10,667,277

                Total      $ 49,537,369     $ 50,838,495         $    675,000      $     880,000   $ 50,212,369     $ 51 ,718,495


Economic Factors and the 2011 Budget

The real estate tax rate for 2011 remained at 24.9 mills.

The County's 2011 annual required contribution to the Retirement Fund is $3,750,578.

The $182 million consolidated budget for 2011 represents a 6.3% increase from 2010.

A County-wide property reassessment is scheduled to begin in the fall of2011.

Contacting the County's Financial Management

This financial report is designed to provide citizens, taxpayers, investors, customers, and
creditors with a general overview of Washington County's finances and to demonstrate
accountability for the funds it receives. Questions concerning the report or requests for
additional information should be directed to:

                                    Washington County Controller's Office
                                    Courthouse Square, Suite 403
                                    100 West Beau Street
                                    Washington, PA 15301




                                                            Xl
[ THIS PAGE INTENTIONALLY LEFT BLANK ]
                  COUNTY OF WASHINGTON, PENNSYLVANIA
                                             STATEMENT OF NET ASSETS

                                                      DECEMBER 31,2010


                                                                                       Primary Government
                                                                    Governmental          Business-type
                                                                     Activities             Activities           Total
                           Assets

Cash and cash equ ivalents                                      $      30,698,544       $     5,489,290      $   36,187,834
Residents' and other restricted funds                                                           155,809             155,809
Receivab les :
  Taxes rece ivable, net of allowance                                   2,121 ,422                                2,121 ,422
   Internal balances                                                        13,303               (13 ,303)
  Due from other governments                                            7,440,383              3,747,366         11,187,749
   Interest and other                                                   2,134,502              1,404,332          3,538,834
  Loans receivable                                                      2,290,396                                 2,290,396
Prepaid assets and other                                                   272,052                53,521             325,573
Fixed assets not being depreciated                                         79 1,51 1             721 ,729          1,513,240
Fixed assets, net of accumulated depreciation                          34,662,645             11,7 19,104        46,38 1,749
Infrastructure assets not being depreciated                              1,247,464                                 1,247,464
Infrastructure assets, net of accumu lated depreciation                2 1,244,098                               2 1,244,098
Deferred bond issue costs                                                  443,55 1                                  443 ,551

       Tota l Assets                                                   103,359,871            23 ,277,848        126,637,719

                       Liab ilities

Accounts payable                                                         8,427,466             1,403 ,007          9,830,473
Accrued payroll and related liabilities                                  1,981,145             1,254,724           3,235,869
Accrued interest payable                                                   516,222                                   516,222
Unearned revenue                                                         1,477,350             1,012,807           2,490,157
Net other post-emp loyment benefits ob ligation                          5,302,786             2,980,131           8,282,917
Residents' and other restricted funds                                                            155 ,809            155,809
Derivative liability                                                       82 1,695                                  821 ,695
Borrowing payable - swaption                                             1,035,148                                 1,035 ,148
Bonds payable:
  Amount due within one year                                             2,095,000               2 15,000          2,3 10,000
  Amount due in more than one year                                      47,442,369               460,000          47,902,369
  Net discount on bonds                                                     (6,277)                                    (6,277)
  Deferred refunding loss                                               (1,124,228)                               (l,124,228)

    Net bonds payab le                                                  48,406,864               675,000          49,08 1,864
       Total Liabilities                                                67,968,676             7,481,478          75,450,154

                       Net Assets

Invested in capital assets, net of related debt                         11,756,579            11,765,833          23,522,4 12
Restricted for :
  Human services                                                         4,029,078                                 4,029,078
Unrestricted                                                            19,605,538             4,030,537          23 ,636,075

       Total Net Assets                                          $      35,391,195       $    15,796,370     $    51 ,187,565




         The notes to the primary government financial statements are an integral part of this statement.
                                                       COUNTY OF WASHINGTON , PENNSYLVANIA
                                                                       STATEMENT OF ACTIVITIES
                                                                      YEAR ENDED DECEMBER 31, 2010


                                                                                                        Program Revenues        Net (Expense) Revenue and Change in Net Assets
                                                                                                             Operating           Capital      Prima!1 Government
                                                                                       Charges for           Grants and         Grants and       Governmental     Business-type
                        FunctionsfPrograms                  ~enses                      Services           Contributions       Contributions       Activities       Activities               Total

     ---l    Primary Government:
    =-
     (1)       Governmental activities:
    '"
     0           General government - administration         $
                                                             19,610,066           $        3,498,142      $          58,342    $      187,950     $ (15 ,865 ,632)   $                  $   (15 ,865,632)
    a
    0
                 General government - judicial               14,041 ,582                   4,821,975             2,020, 181                          (7 , 199,426)                            (7, 199,426)
                 Public safety                               15,817,893                      819,698                848,957                         (14,149 ,238)                           (14, 149,238)
     go
     (1)         Public works and enterprises                 1,775 ,96 1                    204,281                 68,644           982,159          (520 ,877)                               (520,877)
     ..,
    "t:l
                 Human services                              80,204,904                    1, 179,565           80, 164, 140                          1, 138,801                               1, 138,801
     3"          Culture and recreation                         619, 154                       59,109                                 187,666          (372 ,379)                               (372,379)
     "'
    --<          Conservation and development                   196,840                                               6,435           3 19,047            128,642                                 128,642
    (JQ
     0
                 Interest on long-term debt                 __2,584,843                                                                              (2 ,584,843)                             (2 ,584,843)
     -<
     (1)
     :;
     3             Total governmental activities                 134,851 ,243             10,582,770            83,166,699          1,676,822       (39,424,952)                            (39 ,424,952)
     (1)

     ~
     :n        Business-type activities:
      "
     '"'         Washington County Health Center                  26,411 ,477            25,958,537                637,424            711 , 148                             895 ,632             895,632
     '
     ["
     ()
                                                                   4,729,603              1,475 ,905                                1,484,371                            (1,769,3272         (1 ,769,327 2
                 Emergency Communication 911
N    V>
     ~

     ;'!;.                                                        31,141 ,080            27,434,442                637,424          2, 195 ,519                            (873,695)           (873 ,695)
     (1)
                   Total business-type activities
     3
     (1)
                                                             $ 165 ,992,323        $     38,017,212       $     83 ,804,123    $    3,872,341       (39,424 ,952)          (873 ,695)       (40,298,647)
     ~               Total Primary Government
     ~
     "'
     '"
                                                            General revenues:
     g:                                                      Taxes:
     (1)
                                                               Property taxes, levied for general purposes, net of uncollectibles                    37,661 ,517                            37,661 ,517
    ~
     -
     "'
    "t:l
                                                               Hotel tax                                                                              1, 127,611                             1,127,611
                                                             Interest                                                                                   281 ,783             24,285            306,068
     "'
     ::\
                                                                                                                                                      1,682 ,257                             1,682,257
     ,...,
     0                                                       Rents and royalties
     go                                                      Payments in lieu of taxes                                                                   150,277                               150,277
     U;"                                                                                                                                                                                      (351 ,525)
     V>                                                      Investment gain (loss) on swaption                                                        (351,525)
     ~

     ;'!;.                                                   Reimbursed expenses                                                                      1,974,781                              1,974,781
     (1)

     3                                                       Miscellaneous                                                                              401 ,013                               401 ,013
     (1)
                                                                                                                                                       (500 ,000)           500,000
     ~                                                       Transfers

                                                                    Total general revenues                                                           42,427,714             524,285          42,951 ,999

                                                                                Change in Net Assets                                                  3,002,762            (349 ,410)         2,653,352

                                                                                Net Assets:
                                                                                 Beginning of year (restated)                                        32,388,433          16, 145,780        48,534,213

                                                                                  End of year                                                     $ 35,391 , 195     $   15 ,796,3 70   $   51 , 187,565
                                                           COUNTY OF WASHINGTON, PENNSYLVANIA
                                                                   BALANCESHEET-GOVERNMENTALFUNDS
                                                                                        DECEMBER 31,2010


                                                                                                                                                               Other            Total
                                                                                    Health         Mental Health/          Human                Debt        Governmental     Governmental
                                                                 General            Choices       Mental Retardation       Services            Service         Funds            Funds
                                  Assets
     -l
     ::r-
     "
     ::>
     0
               Cash and cash equivalents                     $   17,436,309     $    3,705 ,455   $       3,200,398    $      1, 176,583   $    1,639,741   $   3,540,058    $ 30,698 ,544
     ~         Receivables:
     8           Taxes receivable, net of allowance               1,946,829                                                                      174,593                          2, 121 ,422
     1r          Due from other governments                       4,760,174                                 396,594           1,030,454           75 ,000         409,631         6,67 1,853
    'g           Interest and other                               1,409,275                                 330,619                                               394,608         2,134,502
     §           Loans receivable                                                                                                              2,290,396                          2,290,396
     ",
    ..;:J
    (JQ             Total receivables                             8,116,278                                 727,213           1,030,454        2,539,989          804,239        13 ,218, 173
     0
     <
     "
     :3        Due from other funds                                 797,850                                                                                        46,718           844,568
     3         Prepaids and other                                   271,756                                                                                           296           272,052
     "
     ;::.      Interfund advances receivable                        493 ,466                                                                                                        493 ,466
     ~
     ::>
     ",               Total Assets                           $ 27, 115 ,659     $   3,705,455     $       3,927,611    $      2,207,037    $   4, 179,730   $   4,391,311    $ 45 ,526,803
     ::>
     (")

     ~
w
    '"               Liabilities and Fund Balance
    ",



    "
    3
    "
    ~
             Liabilities:
               Accounts payable                              $    3,212,800     $     392,429     $       2,784, 127   $      1,441,524    $                $     596,586    $    8,427,466
    ",
    (l         Accrued payroll and related liabilities            1,777,590                                  38, 194             17,220                           148, 141        1,981 , 145
               Deferred revenue                                   2,095,563                               1,105 ,290             32,241        2,456,793           99,827         5,789,714
    '"
    ::>
               Due to other funds                                    37,343                                                                                        25 ,392           62,735
    5'

    "
    cr~
    2-
    '0
               Advances due to other funds

                    Total Liabilities                             7, 123 ,296         392,429             3,927,611           1,490,985        2,456,793
                                                                                                                                                                  493 ,466

                                                                                                                                                                1,363 ,412
                                                                                                                                                                                    493 ,466

                                                                                                                                                                                 16,754,526
    '"
    ::4-
    0
    ...,.,   Fund Balance:
    5'-        Reserved for:
    V;'
    ~            Encumbrances                                       53 ,015                                                                                       170,684           223 ,699
    ft           Prepaids                                          271,756                                                                                             296          272,052
    3            Capital projects                                                                                                                               2,253 ,615        2,253 ,615
    "
    ~            Debt service                                                                                                                  1,722,937                          1,722,937
                 Advances                                           493,466                                                                                                         493,466
                 Human services                                                     3,313 ,026                                  716,052                                           4,029,078
               Unreserved, reported in:
                 General Fund                                    19,174,126                                                                                                      19,174, 126
                 Special Revenue Funds                                                                                                                            603 ,304          603,304

                   Total Fund Balance                            19,992,363         3,313,026                                   716,052        1,722,937        3,027,899        28,772,277

                      Total Liabilities and Fnnd Balance     $ 27,115,659       $   3,705,455     $       3,927,611    $      2,207,037    $   4, 179,730   $   4,391 ,311   $ 45 ,526,803
                       COUNTY OF WASHINGTON, PENNSYLVANIA
                           RECONCILIA nON OF THE GOVERNMENTAL FUNDS
                          BALANCE SHEET TO THE STATEMENT OF NET ASSETS

                                                    DECEMBER 31 , 2010



Total Fund Balance - Governmental Funds                                                                        $ 28,772,277

   Amounts reported for governmental activities in the statement of net assets are different
   because:

    Capital assets used in governmental activities are not financial resources and, therefore,
    are not repOited as assets in governmental funds. The cost of the assets including
    infrastructure is $93 ,947,872 and the accumulated depreciation is $36,002,154.                              57,945,718

    Property taxes receivable will be collected next year but are not considered available
    soon enough to pay for the current period's expenditures and, therefore, are deferred in
    the funds.                                                                                                    2,021 ,968

    Amounts loaned that will be collected in future years but are not considered available
    soon enough to pay for the current period's expenditures and, therefore, are deferred in
    the funds.                                                                                                    2,290,396

    Government funds repOit the effect of issuance costs, premiums, discounts, and similar
    items when debt is first issued, whereas these amounts are deferred and amortized in the
    statement of net assets.                                                                                       1,574,056

    The Statement of Net Assets repott the effect of derivative instruments at fair value,
    whereas these amounts are not recorded in the government funds.                                               (1 ,856,843)

    Long-term liabilities, including bonds payable, accrued interest, and net post-
    employment benefits obligation, are not due and payable in the current period and,
    therefore, are not reported as liabilities in the funds. Long-term liabilities at year-end
    consist of:

                                                    Bonds payable                           $ (49,537,369)
                                                    Accrued interest on bonds                    (5 I 6,222)
                                                    Net post-employment benefits obligation    (5,302,786)       (55 ,356,377)

Total Net Assets - Governmental Activities                                                                     $ 35,391 ,195




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

                                                                4
                                     COUNTY OF WASHINGTON, PENNSYLVANIA
                  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
                                        GOVERNMENTAL FUNDS

                                                           YEAR ENDED DECEMBER 31, 20 10


                                                                                   Mental Health/                                           Other             Total
                                                                     Health           Mental               Human            Debt         Governmental      Governmental
                                                    General          Choices        Retardation            Services        Service          Funds             Funds
R evenues:
  Taxes                                          $ 34,653,646      $               $                   $                 $ 2,975,252     $                 $ 37,628,898
   Intergovernmental                               19,459,436       37,203 , 113        10,879,771         14,293, 135                       3,352,7 13      85,188, 168
  Charges for services                             10,027,942                              954,505                                             425, !O3      11,407,550
   Fines and forfeits                                 117,272                                                                                                   117,272
   Interest                                           200,809           41,818               5,495             12,686         2,372            18,903           282,083
  Other                                             2,912,500                               14,555             16,807       403 ,923          696,095         4,043,880

    Total reve nues                                67,371,605      37,244,931           11,85 4,326        14,322,628     3,381 ,547         4,492,814      138,667,851

Expenditures:
  Current:
    General government - administration             9,770,469                                                                                                 9,770,469
    General government - judicial                  10,585,689                                                                                2,572,747       13, 158,436
    Pub lic safety                                 14,620,862                                                                                   96,68 1      14,7 17,543
    Public works and enterprises                                                                                                             1,147,894        1,147,894
    Human services                                  15,53 1,947    37,189,715           12,224 ,326        14,597,931                                        79,543,9 19
    Cu lture and recreation                            193 ,555                                                                                                  193,555
    Conservation and deve lopment                      308,5 12                                                                                                  308,512
    Other                                            7,882,338                                                                                                7,8 82,338
  Debt service:
    Principal                                                                                                              2,025 ,000                         2,025,000
    Interest and fisca l charges                                                                                           1,727,822                          1,727,822
  Capital projects                                                                                                                           1,636,007        1,636,007

    Total expenditures                             58,893,372      37,189,7 15          12,224,326         14,597,93 1     3,752,822         5,453,329      132, 11 1,495

Excess (Defici ency) of Revenu es
  Over Expendit ures                                8,478,233           55 ,216           (370 ,000)         (275,303)      (37 1,275)        (960,5 15)       6,556,356

Oth er Fin a ncing Sources (Uses):
  Sale of capital assets                                 5,060                                                                                                      5,060
  Real estate refunds                                 (180,302)                                                                                                  (180,302)
  Loan repayment                                                                                                             243,678                              243 ,678
  Operating transfers in                                                                   370,000                                             945,534          1,315,534
  Operating transfers out                           ( 1,815,000)                                                                                  (534)       ( 1,815,534)

    Total other financing sources (uses)            ( 1,990,242)                           370,000                           243,678           945,000          (43 1,564)

Net Cha nge in F und Ba la nce                       6,487,99 1         55,216                               (275,303)      (127,597)           (15,515)       6, 124,792

F und Ba la nce:
  Begin ning of year                                13,504,372       3,257,810                                99 1,355     1,850,534         3,043,414        22,647,485

  End of year                                    $ 19,992,363      $ 3,3 I 3,026    $                  $      7 16,052   $ 1,722,937      $ 3,027,899      $ 28,772,277




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

                                                                                    5
                    COUNTY OF WASHINGTON, PENNSYL VANIA
           RECONCILIA nON OF THE STATEMENT OF REVENUES, EXPENDITURES,
              AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
                         TO THE STATEMENT OF ACTIVITIES

                                         YEAR ENDED DECEMBER 31, 2010


Net Change in Fund Balance - Governmental Funds                                                            $   6,124,792

  Amounts reported for governmental activities in the statement of activities are
  different because:

    Governmental funds report capital outlays as expenditures. However, in the
    statement of activities, the cost of those assets is allocated over their estimated
    useful lives as depreciation expense.
                                                       Capital outlays (net of deletions)   $ 1,413,059
                                                            Less: Depreciation expense       (2,915,465)       (1 ,502,406)

    Some taxes will not be collected for several months after the County of
    Washington's year-end, they are not considered as "available" revenues in the
    governmental funds. Deferred revenues increased by this amount during the year.                                32,619

    Loan repayments that will be collected in future years and, therefore, are not
    considered as "available" revenues in the governmental funds. Deferred revenues
    decreased by this amount during the year.                                                                    (243,678)

    The issuance of long-term obligations (e.g., bonds, leases, loans) provides current
    financial resources to governmental funds, while the repayment of the principal of
    long-term obligations consumes the current financial resources of governmental
    funds. Neither transaction, however, has any effect on net assets. Also,
    governmental funds report the effect of issuance costs, premiums, discounts, and
    similar items when debt is first issued, whereas these amounts are deferred and
    amortized in the statement of activities. This amount is the net effect of these
    differences in the treatment of long-term obligations and related items.                                    1,193 ,905

    Adjustment of accounting for prior year loan pool payments.                                                   111,672

    Investment income and loss related to derivative instruments is recogn ized as
    revenue within the statement of activities. This amount represents the change in
    the investment in derivative instruments during the year.                                                    (383 ,843)
    Liabilities incurred for post-employment benefits are not due and payable in the
    current period and, therefore, are not reported in the funds.                                              (2,336,691)

   Interest on long-term obligations in the statement of activities differs from the
   amount reported in the governmental funds because interest is recognized as an
   expenditure in the funds when it is due, and thus requires the use of current
   financial resources. In the statement of activities, interest expense is recognized as
   the interest accrues, regardless of when it is due. The change in accrued interest is
   shown here.                                                                                                       6,392

Change in Net Assets of Governmental Activities                                                            $ 3,002,762




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

                                                             6
             COUNTY OF WASHINGTON, PENNSYLVANIA
                  STATEMENT OF REVENUES, EXPENDITURES , AND
                 CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
                                GENERAL FUND

                                     YEAR ENDED DECEMBER 31 , 2010


                                                       Budgeted Amounts                    Actual         Variance with
                                                    Original        Final                 Amounts         Final Budget
Revenues:
  Taxes                                         $ 33 ,979,688      $ 33 ,979,688      $ 34,653 ,646       $     673 ,958
  Intergovernmental                               19,284,032         19,284,032         19,459,436              175,404
  Charges for services                             8,248 ,500         8,248,500         10,027,942            1,779,442
  Fines and forfeits                                  120,000            120,000           117,272                (2,728)
  Interest                                            200,500            200,500           200,809                   309
  Other                                            2,656,000          2,656,000          2,912,500              256,500

      Total revenues                                64,488,720         64,488 ,720        67,371 ,605         2,882,885

EXEenditures:
 Current:
   General government - administration              10,216,919         10,236,919          9,770,469            466,450
   General government - judicial                    10,991 ,025        11 ,001 ,025       10,585 ,689           415,336
   Public safety                                    15 ,554,950        15 ,594,950        14,620,862            974,088
   Human services                                   17,756,868         17,756,868         15 ,531,947         2,224,921
   Culture and recreation                               193 ,705           193 ,705           193 ,555              150
   Conservation and development                         318,512            318,512            308,512            10,000
   Other                                             7,391 ,500         7,321 ,500         7,882,338           (560,838)

      Total expenditures                            62,423,479         62,423 ,479        58,893 ,372         3,530,107

Excess (Deficiency) of Revenues
  Over Expenditures                                  2,065,241          2,065,241          8,478 ,233         6,412,992

Other Financing Sources (Uses):
  Sale of capital assets                                  6,000              6,000               5,060             (940)
 Real estate refunds                                  (200,000)          (200 ,000)          (180,302)           19,698
 Operating transfers out                            (2 ,070,000)       (2 ,070,000)        (1 ,815,000)         255 ,000

      Total other financing sources (uses)          (2,264,000)        (2 ,264,000)        (1 ,990,242)         273,758

Net Change in Fund Balance                      $     (198 ,759)   $     (198 ,759)   $    6,487,991      $ 6,686,750




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

                                                         7
        COUNTY OF WASHINGTON, PENNSYLVANIA
             STATEMENT OF REVENUES, EXPENDITURES, AND
           CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
               HEALTH CHOICES SPECIAL REVENUE FUND

                             YEAR ENDED DECEMBER 31 , 2010


                                                  Original and
                                                 Final Budgeted          Actual      Variance With
                                                    Amounts             Amounts       Final Budget
Revenues:
 Intergovernmental:
   State grant                                    $ 32,300,000      $ 35 ,349,948    $ 3,049,948
   Reinvestment                                      2,800,000         1,853,165        (946,835)
 Interest                                               60,300             41,818        (18,482)

   Total revenues                                     35 ,160,300       37,244,931       2,084,631

Expenditures:
 Human services                                       34,915 ,000       37,189,715       (2,274,715)

Excess (Deficiency) of Revenues
 Over Expenditures                                $      245,300    $       55,216   $    (190,084)




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

                                                 8
         COUNTY OF WASHINGTON, PENNSYLVANIA
          STATEMENT OF REVENUES, EXPENDITURES, AND
        CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
   MENTAL HEAL THiMENTAL RETARDATION SPECIAL REVENUE FUND

                              YEAR ENDED DECEMBER 31 , 2010



                                                Original and
                                               Final Budgeted           Actual
                                                  Amounts              Amounts            Variance
Revenues:
 Intergovernmental                             $   12,762,400      $ 10,879,771       $   (1 ,882,629)
 Charges for services                               1,506,000           954,505              (551 ,495)
 Interest                                             230,000             5,495              (224,505)
 Other                                                                   14,555                14,555

   Total revenues                                  14,498 ,400         11 ,854,326        (2,644,074)

Expenditures:
 Human services                                    14,874,839          12,224,326          2,650,513

Excess (Deficiency) of Revenues
 Over Expenditures                                     (376,439)         (370,000)              6,439

Other Financing Sources (Uses):
 Operating transfer in                                 370,000            370,000

Net Change in Fund Balance                     $         (6,439)   $                  $         6,439




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

                                                   9
            COUNTY OF WASHINGTON, PENNSYLVANIA
                  STATEMENT OF REVENUES, EXPENDITURES, AND
                CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
                    HUMAN SERVICES SPECIAL REVENUE FUND

                                  YEAR ENDED DECEMBER 31, 2010


                                                     Original and
                                                    Final Budgeted             Actual
                                                       Amounts                Amounts           Variance
Revenues:
 Intergovernmental:
   Federal grant - CCIS daycare                     $        4,243,208    $    4,258,737    $       15,529
   Federal grants - other human services                     2,486,361         3,933,099         1,446,738
   State grants - transportation                             1,901,110         1,781,006          (120,104)
   State grant - HSDF                                          560,081           349,598          (210,483)
   State grant - CCIS daycare                                3,762,844         3,603,436          (159,408)
   State grants - other human services                         456,028           367,259           (88,769)

     Total intergovernmental                             13,409,632           14,293,135            883,503

 Interest                                                        5,000            12,686              7,686
 Other                                                           7,240            16,807              9,567

     Total revenues                                      13 ,421,872          14,322,628            900,756

Expenditures:
 Human services:
   CCIS daycare                                              7,992,875         7,857,157            135,718
   Transportation                                            3,587,000         3,491,052             95,948
   HSDF                                                        560,081           382,791            177,290
   Other                                                     1,261,499         2,866,931         (1,605,432)

     Total expenditures                                      13,401,455       14,597,931         (1,196,476)

Excess (Deficiency) of Revenues
 Over Expenditures                                  $           20,417    $     (275,303)   $       (295,720)




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

                                                        10
            COUNTY OF WASHINGTON, PENNSYLVANIA
         STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
      IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND

                                 YEAR ENDED DECEMBER 31 , 2010



                                                    Original and
                                                   Final Budgeted           Actual
                                                      Amounts              Amounts            Variance
Revenues:
 Taxes                                             $    2,930,344     $     2,975,252     $         44,908
 Interest                                                  20,000               2,372              (17,628)
 Other                                                    727,475             403,923             (323 ,552)

     Total revenues                                     3,677,819           3,381,547             (296,272)

Expenditures:
 Debt service:
   Principal                                            2,230,000           2,025,000             205,000
   Interest and fiscal charges                          1,772,328           1,727,822              44,506

     Total expenditures                                 4,002,328           3,752,822             249,506

Excess (Deficiency) of Revenues
 Over Expenditures                                       (324,509)           (371,275)             (46,766)

Other Financing Sources (Uses):
 Loan repayment                                           250,000             243,678               (6,322)

     Total other financing sources (uses)                 250,000             243,678               (6,322)

Net Change in Fund Balance                          $     (74,509)     $     (127,597)    $        (53,088)




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

                                                   11
                     COUNTY OF WASHINGTON, PENNSYLVANIA
                                          STATEMENT OF NET ASSETS
                                             PROPRlETARY FUNDS

                                                   DECEMBER 31 , 2010


                                                                         Business-type Activities - Enterprise Funds
                                                                      Washington        Emergency
                                                                       County         Communication
                                                                     Health Center          911                 Total
                      Assets

Current assets:
 Cash and cash equivalents                                           $    4,386,647      $    1,102,643     $    5,489,290
 Residents' and other restricted funds                                      155,809                                155,809
 Receivables due from other funds                                            13,763                                 13 ,763
 Receivables due from other governments                                   3,747,366                              3,747,366
 Receivables - interest and other                                         1,261 ,305           143,027           1,404,332
 Prepaid assets and other                                                    51 ,944             1,577              53 ,521
   Total current assets                                                   9,616,834           1,247,247         10,864,081
Fixed assets not being depreciated                                          721 ,729                               721 ,729
Fixed assets, net of accumulated depreciation                             6,216,537           5,502,567         11,719,104
     Total Assets                                                         16,555,100          6,749,814         23,304,914

                    Liabilities

 Current liabilities:
  Accounts payable                                                         1,298,942           104,065           1,403,007
  Accrued payroll and related liabilities                                  1,112,461           142,263           1,254,724
  Due to other funds                                                          24,876             2,190              27,066
  Deferred revenue                                                           718,630           294,177           1,012,807
  Residents' and other restricted funds                                      155,809                               155,809
  Current portion of long-term debt                                          215,000                               215,000
     Total current liabilities                                             3,525,718            542,695          4,068,413
 Long-term liabilities:
  Net other post-employment benefits obligation                            2,633 ,084           347,047          2,980,131
  Long-term debt                                                             460,000                               460,000
     Total long-term liabilities                                           3,093 ,084           347,047          3,440,131
     Total Liabilities                                                     6,618,802            889,742          7,508,544
                    Net Assets

 Invested in capital assets, net of related debt                           6,263,266          5,502,567         11,765,833
 Unrestricted                                                              3,673,032            357,505          4,030,537
     Total Net Assets                                                 $    9,936,298      $   5,860,072     $ 15,796,370




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

                                                              12
                   COUNTY OF WASHINGTON, PENNSYLVANIA
       STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
                            PROPRlETARY FUNDS

                                        YEAR ENDED DECEMBER 31,2010


                                                                      Business-type Activities - Enterprise Funds
                                                                 Washington          Emergency
                                                                  County           Communication
                                                                Health Center            911                  Total

Operating Revenues :
 Charges for services and fees                                $ 25,958,537         $      1,475,905       $ 27,434,442

O perating Expenses:
  Patient/client services                                           25,787,182                              25,787,182
  Public safety                                                                          2, 16 1,388         2, 161,388
  Depreciation                                                        519,273            1,280,119           1,799,392

    Total operating expenses                                        26,306,455           3,441,507          29,747,962

     Operatin g Income (Loss)                                         (347,918)          (1 ,965,602)        (2,313,520)

Non-Operating Revenu es (Expenses):
 Wireless 911 grant revenue                                                               1,293,818           1,293,818
 Wireless 911 grant expenses                                                             (1,288,096)         (1,288,096)
 Fixed asset expenses                                                  (65,724)                                 (65 ,724)
 State grant revenue                                                 1,348,572                                1,348,572
 Interest expense                                                      (39,298)                                 (39,298)
 Interest income                                                        21,488                2,797              24,285

   Total non-operating revenues (expenses)                           1,265,038                8,519           1,273,557

     Income (Loss) Before F un d Transfers                             917,120           (1,957,083)         (1,039,963)

 Capital contributions                                                                      190,553             190,553
 Fund transfers in                                                     250,000              500,000             750,000
 Fund transfers out                                                   (250,000)                                (250,000)

C hange in Net Assets                                                  917,120           (1,266 ,530)          (349,410)

Net Assets :
 Beginning of year                                                   9,0 19,178           7,126,602          16, 145 ,780

 End of year                                                    $    9,936,298      $     5,860,072       $ 15,796,370




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

                                                           13
                            COUNTY OF WASHINGTON, PENNSYLVANIA
                                                  STATEMENT OF CASH FLOWS
                                                     PROPRIETARY FUNDS

                                                  YEAR ENDED DECEMBER 3 1,20 10


                                                                                         Business-type Activities - Enterprise Funds
                                                                                       Washington        Emergency
                                                                                        County         Communication
                                                                                      Health Center          911                Total

Cash F lows Fro m Operating Activities:
 Cash received fro m customers                                                       $    24,596,653        $    1,494,964      $ 26,091,617
 Cash payments for patient and client serv ices                                          (24,389,483)           (J ,896,523)        (26,286,006)

  Net cash provided by (used in) operating activities                                        207, 170             (40 I ,559)         ( 194,389)

Cash Flows From Ca pital and Related Financing Activities:
 Purchases of fixed assets                                                                (J ,057,985)             (36,420)          (1 ,094,405)
 Grant revenue                                                                               937,424              (150,822)              786,602
 Interest payments on bonds                                                                  (39,298)                                    (39,298)
 Principal payments on bonds                                                                (205,000)                                   (205,000)

  Net cash provided by (used in) capital and related financing activities                   (364,8 59)            (187,242)            (552, 101)

Cash Flows From Non-Capital Financing Activities:
 Payments for wireless expenses                                                                                 (J ,288,096)         (1,288,096)
 Reciept of wi reless grant revenue                                                                              1,293,8 18           1,293,8 18
 Operating transfers in                                                                      250,000               500,000              750,000
 Operating transfers out                                                                    (250,000)                                  (250,000)

 Net cash provided by (used in) non-capital financing activi ties                                                  505 ,722             505,722

Cash Flows From Investing Activities:
 Interest received on investments                                                              21 ,488                2,797              24,285

Net Increase (Decrease) in Cash and Cash Equivalents                                         (136, 201)            (80,282)            (2 16,483)

Cash and Cash Equivalents:
 Beginning of year                                                                         4,522,848             1,182,925            5,705 ,773

 End of year                                                                         $     4,386,647        $    1,102,643      $     5,489,290

Reconciliation of Operating Income (Loss) to Net Cash
 Provided (by) Used (in) Operating Activities:
 Operating income (loss)                                                             $       (347,9 18)     $ (1,965 ,602)      $ (2,3 13,520)
 Adjustments to reconcile operating income (loss) to net cash
   provided by (used in) operating activities:
      Depreciation and net amortization                                                       519,273            1,280, 119           1,799,392
       Change in:
         Accounts receivable                                                                 (189,318)               19,059             (170,259)
         Due from other goverrunents                                                       (1, 167,615)                              (1 ,167,615)
         Other current assets                                                                     4,061                (600)               3,461
         Accounts payable                                                                      111,3 32              92,02 1             203,353
         Due from other funds                                                                    (4,95 1)                                 (4,95 1)
         Due to other funds                                                                    ( 13 ,064)                795             (12,269)
         Net other post-employment benefits obligation                                      1,155,628               151 ,059          1,306,687
         Accrued salarieslbenefits                                                             139,742               21 ,590             161 ,332

 Net cas h provided by (used in) operating activities                                $        207,170       $     (40 1,559)    $      (194,389)




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

                                                                      14
      COUNTY OF WASHINGTON, PENNSYLVANIA
                      STATEMENT OF FIDUCIARY NET ASSETS
                              FIDUCIARY FUNDS
                               YEAR ENDED DECEMBER 31,2010


                                                                Pension
                                                                 Trust              Agency
                                                                 Fund               Funds
                      Assets

Cash and cash equivalents                                  $                    $     6,281,622
Investments (at fair value):
  U.S. government and related obligations                       16,721,753
  Common stock and other                                        73,002,477
  Corporate debt                                                 8,275,463
  Mortgage and other asset-backed securities                       835 ,594
Receivables:
  Interest                                                         237,415

    Total Assets                                                99,072,702            6,281,622


                   Liabilities

Accounts payable                                                    74,847
Due to other funds                                                                      768,530
Due to other governments                                                              1,591,655
Escrow liability                                                                      3,921,437

  Total Liabilities                                                 74,847            6,281 ,622

Net Assets Held in Trust for Pension Benefits               $   98,997,855      $




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

                                               15
           COUNTY OF WASHINGTON, PENNSYLVANIA
               STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
                             FIDUCIARY FUNDS
                                YEAR ENDED DECEMBER 31 , 2010


    Additions:
     Contributions:
      Employer                                                                     $      3,581,228
      Employee                                                                            2,871 ,094

        Total contributions                                                               6,452,322

    Investment income:
      Net appreciation in fair value of investments                                       9,090,996
      Interest and dividends                                                              1,760,066

                                                                                         10,851 ,062
     Investment expense                                                                    (403,098)

       Net investment income                                                             10,447,964

           Total additions                                                               16,900,286

    Deductions:

/    Benefits
     Refunds of contributions
                                                                                          4,803,840
                                                                                            983,995
     Administrative expense                                                                   2,338

           Total deductions                                                               5,790,173

    Change in Plan Net Assets                                                            11,110,113

    Fund Balance - Reserved for Employees'
     Pension Benefits (Plan Net Assets):
       Beginning of year                                                                 87,887,742

       End of year                                                                  $    98,997,855




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

                                                      16
  COUNTY OF WASHINGTON, PENNSYLVANIA
               NOTES TO THE PRIMARY GOVERNMENT
                     FINANCIAL STATEMENTS

                        YEAR ENDED DECEMBER 31, 2010


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  The County of Washington (County), a fourth class County, originally founded in
  1781 , is located in western Pennsylvania, to the south of the City of Pittsburgh. The
  County, operating under an elected three-member Board of Commissioners
  (Commissioners), provides services in many areas to its residents, including various
  general government, public safety, and health and welfare services.

  The primary government financial statements (financial statements) of the County
  have been prepared in accordance with accounting principles generally accepted in
  the United States of America (GAAP) as applied to governmental units. The
  Governmental Accounting Standards Board (GASB) is the authoritative standard-
  setting body for the establishment of governmental accounting and financial reporting
  principles. The more significant of these accounting policies are as follows:

  A. Reporting Entity

  The reporting entity for the County includes the accounts of all County operations,
  including administrative and judicial government, corrections, and health and welfare.
  These financial statements include the Primary Government (the County, a general
  purpose local government, and all funds, organizations, institutions, agencies,
  departments, and offices that are not legally separate from the County) and do not
  reflect all component units that meet the criteria for inclusion under GASB Statement
  No. 39, "Determining Whether Certain Organizations Are Component Units. "

  Consistent with applicable guidance, the criteria used by the County to evaluate the
  inclusion of potential component units within its reporting entity are financial
  accountability and the nature and significance of the relationship. The County is
  financially accountable for:

     1. Organizations that make up the legal County entity.

     2. Legally separate organizations if the Commissioners appoint a voting majority
        of the organization's governing body and the County is able to impose its will
        on the organization or if there is a potential for the organization to provide
        specific financial benefits to, or impose specific financial burdens on, the
        County.




                                          17
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31,2010


       a. Impose its Will - If the County can significantly influence the programs,
          projects, or activities of, or the level of services performed or provided by,
          the organization.
       b. Financial Benefit or Burden - Exists if the County (1) is entitled to the
          organization's resources, (2) is legally obligated or has otherwise assumed
          the obligation to finance the deficits of, or provide support to, the
          organization, or (3) is obligated in some manner for the debt of the
          organization.

   3. Organizations that are fiscally dependent on the County. Fiscal dependency is
      established if the organization is unable to adopt its budget, levy taxes or set
      rates or charges, or issue bonded debt without approval by the County.

Component Units:

The following separately administered organizations meet the criteria for inclusion in
the County's reporting entity. However, as described in Note 1, these financial
statements include only the primary government.

Washington County Authority

The Authority was created, pursuant to the Municipality Authorities Act of 1945,
primarily as a financing vehicle for County projects. The Authority's officers are
appointed by the Commissioners. Debt issued by the Authority on behalf of the
County is subject to guarantee by the County. Payments equal to related debt service
are made by the County under the terms of a lease agreement. Separately issued
audited financial statements of the Authority are available through the Authority's
administrative offices.

Washington County Tourist Promotion Agency

The Washington County Tourist Promotion Agency (Agency) was designed to
stimulate and increase the volume of tourism within the County. The Agency's
Board is appointed by the Commissioners. The Agency operates autonomously from
the County and is responsible for the designation of management. Debt issued by the
Agency on behalf of the County is subject to guarantee by the County. Separately
issued financial statements are available through the Agency's administrative offices.




                                         18
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31,2010


Related Organizations:

Following are organizations that have the majority of their governing board appointed
by the County Commissioners, without the County being financially accountable for
the organization:

Washington County Housing Authority

The Washington County Housing Authority (Housing County) administers HUD's
Section 8 housing program for the County and is funded through federal grants. The
Housing Authority's Board is appointed by the County Commissioners and operates
independently of any ongoing involvement of the County. The County must approve
the concept of any major capital expansion project, but are not financially
accountable for the Housing Authority.

Washington County Industrial Development Authority

The Washington County Industrial Development Authority (IDA) issues low interest,
tax-exempt bonds and uses the proceeds to finance projects intended to stimulate
economic growth in the County. The IDA's Board is appointed by the County
Commissioners and the IDA operates independently of any ongoing involvement of
the County. The County must approve the concept of any major bond issue of the
IDA but only in relation to the benefit to the County of the projects that will be
funded through the debt proceeds. The County has no legal responsibility for IDA
debt.

Washington County Redevelopment Authority

The Washington County Redevelopment Authority (RDA) administers state and
federal grant programs intended to stimulate urban revitalization and growth in the
County. The RDA's Board is appointed by the County Commissioners and the RDA
operates independently of any ongoing involvement of the County except that the
County is a contractual recipient of federal financial assistance under agreements with
the U.S. Department of Housing and Urban Development (HUD). The County has
authorized HUD to transmit funds under these programs directly to the RDA. HUD
recognizes RDA as the representative agency with program oversight responsibility.
These transactions do not meet the criteria for inclusion in the County's financial
statements.




                                         19
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31 , 2010


Washington County Hospital Authority

The Washington County Hospital Authority (Hospital Authority) issues low interest,
tax-exempt bonds to enable capital financing for hospitals and nursing homes. The
five members of the Hospital Authority's Board are appointed by the County
Commissioners. The Hospital Authority operates independently of any ongoing
involvement of the County. The County must approve the concept of any major
project of the Hospital Authority, but are not financially accountable for the Hospital
Authority. The County has no legal responsibility for Hospital Authority debt.

Washington County Conservation District

The Washington County Conservation District (Conservation District), whose Board
is appointed by the County Commissioners, provides services and programs intended
to address the conservation of the County's natural resources. The Conservation
District operates independently of any ongoing involvement of the County.

Washington County Drug and Alcohol Program - Single County

The Washington County Drug and Alcohol Program - Single County (D&A Program)
was established to provide treatment services through federal and state funded
programs to eligible residents of the County. The D&A Program Board of Directors
is comprised of eleven members. The County does not exercise significant control
over the D&A Program, and the D&A Program is independent of the County
regarding fiscal accountability, scope of public service, and financial assistance
program relationships.

Washington/Greene County Job Training Agency

The Washington/Greene County Job Training Agency (Training Agency) was
established as a separate non-profit entity as of September 1, 1995 to provide job-
training services through federal and state funded programs to eligible residents of
Washington and Greene Counties. The Training Agency's Board of Directors is
comprised of seventeen members, all of whom are subject to final approval prior to
appointment, by the Commissioners of the participating counties. No one County
exercises significant control over the Training Agency and the Training Agency is
independent of the counties regarding fiscal accountability, scope of public service,
and financial assistance program relationships. The Training Agency remains
independent of the County.




                                         20
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31, 2010


Washington County Fair Board

The Washington County Fair Board (Fair Board) is an eleven-member Board elected
from the general membership of the Washington County Agriculture Fair, Inc. The
Fair Board manages the annual agriculture fair as well as the maintenance and upkeep
of the grounds and facilities under a lease agreement with the County.

Southwest Behavioral Health Management, Inc.

Southwest Behavioral Health Management, Inc. (SBHM) is a private, non-profit
corporation incorporated for the purpose of monitoring the behavioral health services
of the Health Choices program.          SBHM operates primarily under funding
administered through six counties, one of which being the County, that j ointl y formed
the corporation.

Washington County Transportation Authority

The Washington County Transportation Authority (Transportation Authority) was
created in November 2001, pursuant to the Municipality Authorities Act of 1945, to
oversee County transportation operations. The Authority assumed responsibility for
services previously provided by the Human Services Authority and the County. The
Transportation Authority's Board is appointed by the Commissioners and one
commissioner serves as an advisory member of the Board. The Transportation
Authority's Board operates autonomously from the County and is responsible for the
designation of management.

B. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the non-fiduciary activities of the
primary government. For the most part, the effect of inter-fund activity has been
removed from these statements. Governmental activities, which normally are
supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for
serVices.

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. Program revenues
include 1) charges to customers or applicants who purchase, use, or directly benefit


                                         21
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31, 2010


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 as general revenues. Expenses
reported for functional activities include allocated indirect expenses.

Separate 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 are reported as separate
columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
and fiduciary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenues in the year for which they are
levied to the extent collectible. Grants and similar items are recognized as soon as all
eligibility requirements imposed by the grantor have been met.

Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered 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 County considers revenues to be available if they are collected within 30
days of the end of the current fiscal period. Property taxes are considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal
period. Grants and similar items are recognized as soon as all eligibility requirements
imposed by the grantor have been met. All other revenue items are considered to be
measurable and available only when cash is received by the County.

Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to
claims and judgments are recorded only when payment is due.

The Washington County Health Center patient revenue is reported at the estimated
net realizable amounts from the residents and third-party payers. Revenue under
third-party payer agreements is subject to audit and retroactive adjustment.


                                         22
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31,2010


Provisions for estimated third-party payer settlements are provided in the period the
related services are rendered. Differences between the estimated amounts accrued
and ultimate final settlements are reported as adjustments become known.

The accounts of the County are organized on the basis of funds. A fund is an
accounting entity with a self-balancing set of accounts established to record the
financial position and results of operations of a specific governmental activity.

The County reports the following major governmental funds:

   The General Fund is the principal operating fund of the County, which is used to
   account for all financial transactions except those required to be accounted for in
   other funds .

   The Health Choices Fund accounts for expenditures and reimbursement of
   Commonwealth of Pennsylvania Medical Assistance revenue related to the
   provision of a mandatory Behavioral Managed Care Program.

   The Mental Health/Mental Retardation Fund accounts for expenditures and
   reimbursement of revenue related to providing treatment services to individuals
   who suffer from mental disabilities.

   The Human Services Fund accounts for the provision of various social services to
   eligible County residents. These services are funded by various federal and state
   grants.

   The Debt Service Fund accounts for the servicing of general long-term debt not
   being financed by proprietary funds.

The County reports the following major proprietary funds:

   The Washington County Health Center operations, which are conducted on a fee-
   for-service basis in a manner similar to commercial enterprises, are accounted for
   as an Enterprise Fund. The County's intent is that the costs (expenses, including
   depreciation) of services to the general public be recovered primarily through user
   charges or cost reimbursement plans.

   The Emergency Communication 911 Fund, an Enterprise Fund, accounts for the
   operations of the County's emergency communication system, which is funded by




                                        23
COUNTY OF WASHINGTON, PENNSYLVANIA
              NOTES TO THE PRlMARY GOVERNMENT
                    FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31,2010


     phone user charges, County contributions, and State reimbursement for wireless
     expenses.

The County also reports the following other governmental funds:

 Special Revenue Funds

 The Special Revenue Funds are used to account for the proceeds of specific revenue
 sources (other than major capital projects) that are legally restricted to expenditures
 for specified purposes. Special Revenue Funds utilized to account for those
 financial activities include:

 •    The Airport Operating Fund accounts for the operation of the County Airport.

 •    The Liquid Fuels Fund accounts for state aid revenues used for building and
      improving roads and bridges.

 •    The Hazardous Materials Emergency Response Fund accounts for funds
      earmarked for the handling of emergency situations involving hazardous
      materials.

 •    The Domestic Relations Fund accounts for expenditures and reimbursement of
      revenue related to the operation of the County's child support enforcement
      program, which is funded by Federal and County funds.

 Capital Projects Funds

 The Capital Projects Funds are used to account for financial resources to be used for
 the acquisition or construction of major capital facilities other than those financed
 by proprietary funds. Capital Projects Funds utilized by the County include:

 •    The Airport Capital Projects Fund accounts for construction and renovation
      projects to the County Airport.

 •    The Capital Expenditures Fund accounts for capital projects funded by the
      County's General Fund and bond proceeds.

 Additionally, the County reports the following fund types:




                                         24
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRlMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31,2010


  Trust and Agency Funds

  Trust and Agency Funds are used to account for assets held by the County in a
  trustee capacity or as an agent for individuals, private organizations, · other
  governments, and other funds. These include the Employees ' Retirement Fund and
  Agency Funds.

  The Employees' Retirement Fund is used to account for the pension plan for County
  employees. The fund is a Pension Trust Fund and is accounted for in essentially the
  same manner as a proprietary fund, since capital maintenance is critical.

 Agency Funds are custodial in nature and do not involve measurement of results of
 operations. Agency Funds are used to account for cash collected by elected row
 officers (Recorder of Deeds, Register of Wills, Prothonotary, Clerk of Courts, and
 Sheriff) and other County offices that are subsequently disbursed to the County
 General Fund, other governments, or individuals for whom it was collected.

Private-sector standards of accounting and financial reporting issued prior to
December 1, 1989, generally are followed in both the government-wide and
proprietary fund financial statements to the extent that those standards do not conflict
with or contradict guidance of GASB. Governments also have the option of
following subsequent private-sector guidance for their business-type activities and
enterprise funds, subject to this same limitation. The County has elected not to follow
subsequent private-sector guidance.

D. Revenue Classification on Government-Wide Statement of Activities

Amounts reported as program revenues include 1) charges to customers or applicants
for goods, services, or privileges provided, 2) operating grants and contributions, and
3) capital grants and contributions, including special assessments.           Internally
dedicated resources are reported as general revenues rather than as program revenues .
Likewise, general revenues include real estate taxes.

Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services and
producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. The principal operating revenues of the Washington County
Health Center Enterprise Fund is patient charges and the Emergency Communications
911 Enterprise Fund is funded from charges to customers for services and State
grants. Operating expenses for the Enterprise Funds include the cost of services,


                                         25
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRlMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31 , 2010


administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as non-operating revenues and
expenses.

When both restricted and unrestricted resources are available for use, it is the
County's policy to use restricted resources first, then unrestricted resources as they
are needed.

E. Deposits and Investments

For the purposes of the statement of cash flows, the County's cash and cash
equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from the date of
acquisition.

Investments are stated at fair value.

F. Interfund Transactions

Advances between funds are accounted for in the appropriate interfund receivable and
payable accounts. Non-current portions of long-term interfund loans receivable
(reported as "Interfund advances receivable" in the General Fund) are equally offset
by a fund balance reserve account, which indicates that they do not constitute
"available spendable resources" because they are not a component of net current
assets.

G. Prepaid Items

Certain payments to vendors reflect costs applicable to future accounting periods and
are recorded as prepaid items in both government-wide and fund financial statements.

H. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable
governmental or business-type activities columns in the government-wide financial
statements. Capital assets are defined by the County as assets with an initial,
individual cost of more than $5 ,000 and an estimated useful life in excess of two
years. Such assets are recorded at historical cost or estimated historical cost if




                                        26
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31,2010


purchased or constructed. Donated capital assets are recorded at estimated fair
market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset
or materially extend assets lives are not capitalized. These costs are charged to
operations when incurred.

Property, plant, and equipment of the primary government are depreciated using the
straight-line method over the following estimated useful lives:

           Land improvements                     5 - 50 years
           Buildings and improvements            10 - 40 years
           Infrastructure (bridges)              60 years
           Infrastructure (other)                50 years
           Furniture and equipment               5 - 20 years

Inventories, principally supplies, are accounted for as expenditures when purchased.
The amount of inventory at December 31, 2010 is not significant.

1. Long-Term Liabilities

In the government-wide statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities.
Bond premiums and discounts, as a well as issuance costs, are deferred and amortized
over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. With the implementation of
GASB Statement No. 34, "Basic Financial Statements - and Management's
Discussion and Analysis - for State and Local Governments, " costs prior to January
1, 2003 have not been included in the County's statement of net assets as there was
no requirement to account for them retroactively, only prospectively.

In accordance with GASB Statement No. 23, "Accounting and Reporting for
Refunding of Debt for Proprietary Activities, " the excess of the reacquisition price
over the net carrying amount of refunded debt is recorded as a reduction to long-term
debt on the statement of net assets and amortized over the shorter of the term of the
refunding issue or refunded bonds.

In accordance with GASB Statement No. 53, "Accounting and Financial Reporting
for Derivative Instruments," the County's swaption contract did not qualify for hedge
accounting and is recorded at fair market value in the government wide statements as


                                        27
COUNTY OF WASHINGTON, PENNSYLVANIA
              NOTES TO THE PRIMARY GOVERNMENT
                    FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31, 2010


an investment. Current period changes in fair market value are recorded as investment
income.

In the fund financial statements, governmental fund types recognize bond premiums
and discounts, bond issue costs, and swaption agreements during the current period.
The face amount of debt and swaption proceeds issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance
costs, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.

J. Compensated Absences

Accumulated unpaid vacation pay is generally earned in the year prior to use. The
amount of accumulated vacation expected to be paid within twelve months is
recorded as a fund liability. The County converts unpaid accumulated sick leave to a
termination benefit provided certain restrictive criteria are met. The ultimate amounts
to be paid have not been determined; however, such payments have been, and are
expected to continue to be, immaterial. Accordingly, no liability for accumulated
sick leave has been recorded.

K. Fund Equity

In the fund financial statements, governmental funds report reservations of fund
balance for amounts that are not available for appropriation or are legally restricted
by outside parties for use for a specific purpose.

   Reserved

   Reserved is used to denote that portion of fund balance that is not available for
   expenditure appropriation or is legally segregated for a specific purpose.

   Unreserved

   Unreserved is used to denote that portion of the fund balance that is available for
   appropriation.




                                         28
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31,2010


L. Net Assets

The government-wide and proprietary fund financial statements are required to report
three components of net assets:

   •   Invested in capital assets, net of related debt - This component of net assets
       consists of capital assets net of accumulated depreciation and is reduced by
       the outstanding balances of any bonds, mortgages, notes, or other borrowings
       that are attributable to the acquisition, construction, or improvement of those
       assets.

   •   Restricted - This component of net assets consists of constraints placed on net
       asset use through external restrictions.

   •   Unrestricted - This component of net assets consists of net assets that do not
       meet the definition of "restricted" or "invested in capital assets, net of related
       debt."

M. Budgets and Budgetary Accounting

Formal budgetary accounting is employed as a management control for all
governmental funds of the County. The County follows these procedures m
establishing the budgetary data reflected in the financial statements:

1. During August and September, the department/agency management uses current
   financial status reports to develop financial projections for their programs for the
   ensuing year, which are then reviewed with the budget staff.

2. The Commissioners then review the submitted budgets with management.

3. Upon consolidation of the department and agency expenditure projections, the
   Commissioners ascertain the most viable financing method.

4. Subsequently, the finance department assembles the preliminary projections of
   revenues and expenditures into a final budget incorporating any revisions or
   adjustments resulting from the aforementioned Commissioners' review.

5. By early December, the final budget is presented to the Commissioners. Pursuant
   to budgetary requirements as set forth in the County Code, public notice is given
   that the final budget is available for inspection for a period of 20 days.


                                         29
COUNTY OF WASHINGTON, PENNSYLVANIA
               NOTES TO THE PRIMARY GOVERNMENT
                     FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31, 2010


6. After the 20-day inspection period, but no later than December 31, the
   Commissioners adopt the final budget by enacting an appropriate resolution.

The Commissioners may at any time, by resolution, make supplemental
appropriations for any lawful purpose from any funds on hand or estimated to be
received within the fiscal year and not otherwise appropriated, including the proceeds
of any borrowing now or hereafter authorized by law. The Commissioners may
authorize the transfer of any unencumbered balance of any appropriation item or any
portion thereof. The legal level of required Commissioner approval of budget
amendments is the individual fund level. The Commissioners made several
supplementary budgetary appropriations throughout the year. These budget changes
are reflected in the applicable budget to actual statements in the final budget amounts.

The Health Choices Special Revenue Fund and Human Services Special Revenue
Fund incurred actual expenditures that exceeded budgeted appropriations. The excess
appropriations were funded primarily by surplus revenue and then by available fund
balance. Miscellaneous other expenditures per the General Fund incurred actual
expenditures that exceeded budgeted appropriations. The excess appropriations were
funded by surplus revenues of the General Fund.

N. Encumbrance Accounting

Encumbrance accounting is employed in governmental funds. Encumbrances (e.g.,
purchase orders, contracts) outstanding at year-end are reported as reservations of
fund balances and do not constitute expenditures or liabilities because the
commitments will be reappropriated and honored during the subsequent year.

o. Health Choices Reinvestment Reserves
In accordance with Department of Public Welfare (DPW) regulations, capitation
revenues in excess of distributions and expenses may be used for reinvestment
planning or risk and contingency. These funds must be segregated from other
capitation funds and each kept in a separate account. The balance in the reinvestment
account at December 31, 2010 is $1,255,263. The balance in the Risk and
Contingency account at December 3 1, 2010 is $1,988,764.

P. Estimates

The preparation of the financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make


                                         30
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31,2010


estimates and assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results may differ than those estimates.

Q. Adoption of Pronouncements

Effective January 1,2010, the County adopted GASB Statement No. 53, "Accounting
and Financial Reporting for Derivative Instruments." This Statement addresses the
recognition, measurement, and disclosure of information regarding derivative
instruments entered into by state and local governments. The Statement specifically
requires governments to measure most derivative instruments at fair value in their
financial statements that are prepared using the accrual basis of accounting. As such,
beginning unrestricted net assets for governmental activities as of December 31, 2009
were restated to comply with the provision of this statement as follows:

Net assets unrestricted, December 31, 2009                             $     16,822,264

   Adjustment of prior year deferred revenue for upfront payment                599,310
   Establish borrowing payable - swaption                                    (1,002,830)
   Establish embedded derivative instrument                                    (470,170)

Net assets unrestricted, December 31,2009, as restated                 $     15,948,574

R. Pending Pronouncements

GASB has issued the following statements which will become effective in future
years as shown below. Management has not yet determined the impact of these
statements on the County's financial statements.

GASB Statement No. 54, "Fund Balance Reporting and Governmental Fund Type
Definitions." The objective of this Statement is to enhance the usefulness of fund
balance information by providing clearer fund balance classifications that can be
more consistently applied and by clarifying the existing governmental fund type
definitions. This Statement will become effective for the December 31, 2011 year-
end.

GASB Statement No. 62, "Codification of Accounting and Financial Reporting
Guidance Contained in Pre-November 30, 1989 FASB and AICPA
Pronouncements." The objective of this Statement is to codify into the GASB




                                         31
  COUNTY OF WASHINGTON, PENNSYLVANIA
               NOTES TO THE PRIMARY GOVERNMENT
                     FINANCIAL STATEMENTS

                       YEAR ENDED DECEMBER 31, 2010


  standards guidance located in FASB and AICP A pronouncements. This Statement
  will become effective for the December 31, 2012 year-end.

  GASB Statement No. 61, "The Financial Reporting Entity." The objective of this
  Statement is to have financial reporting entity financial statements be more relevant
  by improving guidance for including, presenting, and disclosing information about
  component units and equity interest transactions of a financial reporting entity. This
  Statement will become effective for the December 31, 2013 year-end.

  S. Subsequent Events

  Subsequent events have been evaluated through the Independent Auditor's Report
  date, which is the date the financial statements were available to be issued.


2. DEPOSITS AND INVESTMENTS

  Pennsylvania statutes provide for investment of governmental funds into certain
  authorized investment types including U.S. Treasury bills, other short-term U.S. and
  Pennsylvania government obligations, insured or collateralized time deposits, and
  certificates of deposit. The statutes do not prescribe regulations related to demand
  deposits; however, they do allow the pooling of governmental funds for investment
  purposes.

  In addition to the investments authorized for governmental funds, fiduciary fund
  investments may also be made in corporate stocks and bonds, real estate, and other
  investments consistent with sound business practice.

  The deposit and investment policy of the County adheres to state statutes and prudent
  business practice. Deposits of the governmental funds are either maintained in
  demand deposits, savings accounts, and/or certificates of deposit. There were no
  deposit or investment transactions during the year that were in violation of either the
  state statutes or the policy of the County.

  GASB Statement No. 40, "Deposit and Investment Risk Disclosures, " requires
  disclosures related to the following deposits and investment risks: credit risks
  (including custodial credit risk and concentrations of credit risk), interest rate risk,
  and foreign currency risk. The following is a description of the County's deposit and
  investment risk:




                                           32
COUNTY OF WASHINGTON, PENNSYLVANIA
           NOTES TO THE PRIMARY GOVERNMENT
                 FINANCIAL STATEMENTS

                   YEAR ENDED DECEMBER 31, 2010


 Custodial Credit Risk - For a deposit, custodial credit risk is the risk that in the
 event of a bank failure , the County's deposits may not be returned to it. The
 County does not have a formal deposit policy for custodial credit risk. As of
 December 31 , 2010, $1,222,075 of the County's $31,820,500 bank balance was
 insured by the Federal Deposit Insurance Corporation. The remaining ban1(
 balance of $30,598,425 was exposed to custodial credit risk, which is
 collateralized in accordance with Act 72 of the Pennsylvania state legislature,
 which requires the institution to pool collateral for all governmental deposits and
 have the collateral held by an approved custodian in the institution's name. These
 deposits have carrying amounts of $29,694,827 as of December 31 , 2010 and are
 classified as cash and cash equivalents in the statement of net assets.

 For an investment, custodial credit risk is the risk that in the event of the failure of
 the counterparty, the County will not be able to recover the value of its
 investments or collateral securities that are in the possession of an outside entity.
 The County does not have a formal investment policy for custodial credit risk.

 The County's cash equivalent investments are held with state investment pools
 (PLGIT and INVEST). The fair value of the County's position in the external
 investment pools is the same as the value of the pool shares. The underlying
 securities in these pools are held by either the counterparty or its custodial agent
 in a nominee name for the pool. These investments are not evidenced by specific
 securities relating to the County's shares or units in the pool. All investments in
 PLGIT and INVEST, which are not SEC-registered, are subject to oversight by
 the Commonwealth of Pennsylvania. As of December 31, 2010, the bank
 balances of the investments in PLGIT and INVEST are $5,186,076 and $200,727,
 respectively. The carrying value of the investments in PLGIT and INVEST of
 $5,192,620 and $200,727, respectively, is considered to be a cash equivalent for
 presentation on the statement of net assets and governmental fund balance sheet.

 In addition, included in cash and cash equivalents, the County also has money
 market investments with a carrying amount of $1,099,660 which are invested in
 short term U.S. treasury instruments and government agencies. The bank balance
 of the investments in money market funds is $1,099,657, which are not exposed to
 custodial credit risk.

 Credit risk - The risk that an issuer or other counterparty to an investment will not
 fulfill its obligations is called credit risk. The County has no formal investment
 policy that would limit its investment choices based on credit ratings by nationally
 recognized statistical rating organizations. As of December 31 , 2010, the


                                        33
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31, 2010


   County's investments in PLGIT and INVEST have received an AAAm rating
   from Standard & Poor's.

   Interest Rate Risk - The County has no formal investment policy that limits
   investment maturities as a means of managing its exposure to fair value losses
   arising from increasing interest rates. All investments in PLGIT and INVEST
   have an average maturity of less than one year.

Agency Funds

The County maintains bank accounts for the elected row officers and other County
offices. The balance of these accounts is reflected in the statement of fiduciary net
assets. Receipts and disbursements for these programs were $47,120,408 and
$49,354,436, respectively, for the year December 31, 2010. The carrying amount of
deposits for the row offices and other County offices was $6,281,622 and the bank
balance was $6,798,951. Of the bank balance, $178,101 was covered by federal
depository insurance. The remaining balance of $6,620,850 was collateralized in
accordance with Act 72 of the Pennsylvania state legislature, which requires the
institution to pool collateral for all governmental deposits and has the collateral held
by an approved custodian in the institution's name.

Pension Trust Fund

The Pension Trust Funds' investments are held separately from those of other County
Funds. Investments were consistent with those authorized.

As of December 31 , 2010, the County had the following cash equivalents and
investments in its Pension Trust Funds:




                                         34
                  COUNTY OF WASHINGTON, PENNSYLVANIA
                                    NOTES TO THE PRIMARY GOVERNMENT
                                          FINANCIAL STATEMENTS

                                             YEAR ENDED DECEMBER 3 1,2010


                                                                                  Investment Maturities from December 31,2010
                  Cash or                         Fair               Less than        1-5              6-1 0           11 - 15      16 or mo re
              Investment Type                  Market Va lue          1 year         Years             Years           Years          Years
U. S. government and related obligations      $    16,72 1,753   $     932,054    $ 6,649,020       $ 4,474,4 10    $ 2,997,826    $ 1,668 ,443
Corporate debt                                      8,275 ,463          51 ,396     2,803 , 138       4,639,049         781 ,880
Mortgage and other asset-backed securities            835,594                         222,051           240,462                        373 ,081

 Total debt securities                             25 ,832,810   $     983,450    $ 9,674,209       $ 9,3 53 ,921   $ 3,779,706    $ 2,041 ,524

Common stock                                       44,936,851
Mutual funds                                       28,065 ,626
 Total cash and investments reported
  on state ment of fiduciary net assets       $    98,835 ,287


                  The following is a description of the Pension Trust Funds ' deposit and investment
                  risks:

                         Credit risk - The risk that an issuer or other counterparty to an investment will not
                         fulfill its obligations is called credit risk. The Pension Trust Funds have no formal
                         investment policy that would limit its investment choices based on credit ratings
                         by nationally recognized statistical rating organizations. As of December 31,
                         2010, the Pension Trust Funds' investments in cash and cash equivalents have
                         received a rating of Aaa from Moody's. As of December 31 , 2010, the Pension
                         Trust Funds' investments in fixed income bonds have received the following
                         ratings from Moody's :

                                   Credit Quality Distribution for Securities with Credit Expos ure
                                                                            Market                Percentage of Total Pension
                  Investment Type             Moody's Rating                Value                      Trust Fund Bonds

                Fixed Income Bonds                 Aaa                 $     12,897,493                        49.9%
                Fixed Income Bonds                 Aal                          274,306                         1.1%
                Fixed Income Bonds                 Aa2                        1,052,636                         4.1%
                Fixed Income Bonds                 Aa3                        1,007,345                         3.9%
                Fixed Income Bonds                Unrated                    10,60 1,030                       41.0%
                                                                       $     25 ,832,810                       100%

                         Custodial Credit Risk - Custodial credit risk is the risk that in the event of the
                         failure of the bank or counterparty, the Pension Trust Funds will not be able to
                         recover the value of their deposits or investments or collateral securities that are



                                                                      35
  COUNTY OF WASHINGTON, PENNSYLVANIA
              NOTES TO THE PRIMARY GOVERNMENT
                    FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31 , 2010


     in the possession of an outside entity. The Pension Trust Funds do not have a
     formal deposit or investment policy for custodial credit risk. As of December 31,
     2010, the County' s pension investment balance, excluding mutual funds , of
     $70,769,661 (bank and book balance), was exposed to custodial credit risk.
     Pension Trust Funds' investments in mutual funds are not exposed to custodial
     credit risk because they are not evidenced by securities that exist in physical or
     book entry form.

     Concentration of Credit Risk - The County places no limit on the amount the
     County may invest in anyone issuer. At December 31 , 2010, the Fund had 5.85%
     of Pension Trust Funds invested in the Dodge & Cox International Stock Fund
     with a market value of $5,776,934, and 10.74% of Pension Trust Funds invested
     in the American New Perspective Fund with a market value of$10,618,406.

     Interest Rate Risk - The Pension Trust Funds do not have a formal deposit or
     investment policy that limits investment maturities as a means of managing its
     exposure to fair value losses arising from increasing interest rates.

  As further described in Note 12, the County has a derivative instrument that is
  accounted for as an investment. Credit and interest rate risks related to this
  investment are described in Note 12.


3. INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

  The General Fund is reimbursed by other funds for expenses paid on behalf of the
  other funds by the General Fund. The due from/to balances at year-end represent
  payments not yet made. All balances are expected to be paid within one year.

  Individual funds receivable and payable balances at year-end and transfers at
  December 31 , 2010 were as follows:




                                         36
  COUNTY OF WASHINGTON, PENNSYLVANIA
               NOTES TO THE PRIMARY GOVERNMENT
                     FINANCIAL STATEMENTS

                       YEAR ENDED DECEMBER 31,2010



                                                         Interfund           In terfund
                         Fund                           Receivables          Payab les
      Major Funds:
        General                                         $     797 ,850   $       37,343
        Washington County Health Center                        13,763            24,876
        Emergency Communication 911                                               2,190
      Other governmental funds                                 46,718            25,392
      Agency Funds                                                              768,530
                                                        $     858,331    $      858,331


                                                            Transfer         Transfer
                         Fund                                  In              Out
      Major Funds:
        General                                         $                $ 1,815,000
        Mental Health/Mental Retardation                      370,000
        Washington County Health Center                       250,000           250,000
        Emergency Communication 911                           500,000
      Other governmental funds                                945,534                534
                                                        $ 2,065,534      $ 2,065,534


4. CAPITAL ASSETS

  Capital asset activity for the year ended December 31, 2010 was as follows:




                                           37
        COUNTY OF WASHINGTON, PENNSYLVANIA
                          NOTES TO THE PRIMARY GOVERNMENT
                                FINANCIAL STATEMENTS

                                    YEAR ENDED DECEMBER 31,2010


                                                 Balance at                                                           Balance at
                                               January 1, 2010             Increases             Decreases         December 31,2010
Governmental Activities:
 Land and improvements                         $     8,269 ,329        $         17,660      $          23,525     $      8,263 ,464
 Buildings and improvements                         45,446 ,301                 436,336                                  45 ,882,637
 lnfi-astructure                                    26,418 ,140                                                          26 ,418,140
 Furniture and equipment                            11 ,585 ,176                746,550               591,570            11 ,740, 156
 Construction in progress                            1,407 ,075                 260,740                24 ,340            1,643,475
                                                    93 ,126 ,021               1,461,286              639 ,435           93 ,947,872
Less accumu lated depreciation for:
 Land and improvements                               4,080 ,063                  430,569                 6,469            4,504,163
 Buildings and improvements                         19,108 ,883                1,089,974                                 20 ,198,857
 Infr astructure                                     4,692 ,521                  481,521                                  5,174,042
 Furniture and equipment                             5,796 ,430                  913,401               584,739            6,125,092
                                                    33,677,897              2,915,465                  591 ,208          36,002,154
Governmental activities capital assets, net    $    59,448 ,124        $ (1 ,454,179)        $          48 ,227    $     57,945,718


                                                      Balance at                                                       Balance at
                                                   January 1,201   °           Increases             Decreases     December 31,2010
Business-type Activities:
 Buildings and improvements - Health Center        $ 13,006 ,174           $      156,413        $                 $     13 ,162,587
 Permanent fixtures - Health Center                   1,111 ,762                  151 ,456                                1,263,218
 Movable equipment - Health Center                    3,183,382                    81,586                11 ,989          3,252,979
 Emergency management building                          489 ,688                                                             489,688
 Emergency management equipment                      11,267,362                  226,973                                 11,494,335
 Construction in progress                               118:923                  721:729                118:923              721 ,729
                                                      29,177 ,291               1,338,157               130,912          30,384,536
Less accumu lated depreciation for:
  Buildings and improvements - Health Center           7,990,834                  337,228                                  8,328,062
  Movable equipment - Health Center                    2,964 ,129                 182,045                11 ,989           3,134,185
  Emergency management                                 5,201 ,337               1,280,119                                  6,481 ,456
                                                      16,156,300                1,799,392                11 ,989          17,943,703
Business-type activities capital assets, net       $ 13,020 ,991           $ (461 ,235)          $      118,923     $     12,440,833


        Depreciation expense was charged to functions/programs of the primary government
        as follows:




                                                      38
  COUNTY OF WASHINGTON, PENNSYLVANIA
               NOTES TO THE PRIMARY GOVERNMENT
                     FINANCIAL STATEMENTS

                       YEAR ENDED DECEMBER 31, 2010


                  Governmental Activities:
                   General government - administration      $ 1,439,065
                   General government - judicial                327,059
                   Public safety                                578,571
                   Public works and enterprises                 505,356
                   Human services                                39,466
                   Culture and recreation                        25,948
                      Total depreciation expense -
                       governmental activities               $ 2,915,465

                 Business-type Activities:
                   Washington County Health Center            $     519,273
                   Emergency Communication 911                    1,280,119
                       Total depreciation expense -
                        business-type activities              $ 1,799,392


5. WASHINGTON COUNTY EMPLOYEES' RETIREMENT SYSTEM

  Plan Description

  The Washington County Retirement System (plan) is a single employer defined
  benefit pension plan governed by the County Pension Law Act 96 of 1971 (Act), as
  amended, enacted by the General Assembly of the Commonwealth of Pennsylvania.
  All County employees become eligible to become plan participants immediately upon
  becoming an employee. Membership in the plan is optional for elected officials. The
  plan requires each member to contribute a percentage of their salary to the plan. The
  plan provides retirement, disability, and death benefits to plan members and their
  beneficiaries. Cost-of-living adjustments (COLA) are provided at the discretion of
  the Washington County Employees' Retirement Board.              Separate stand-alone
  financial statements are issued for the plan and may be obtained from the County
  Controller's Office.

  At January 1, 2011, the date of the most recent valuation, participants in the plan were
  as follows:




                                           39
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRlMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31 , 2010


                Participants:
                  Retirees and beneficiaries                   566
                  Deferred vested                               56
                 Active plan members:
                    Vested                                     669
                    Nonvested                                  361

                  Total                                       1,652

Summary of Significant Accounting Policies

Financial information of the County' s plan is presented on the accrual basis of
accounting. Plan member contributions are recognized in the period in which the
contributions are due. Employer contributions to the plan are recognized when due as
required by the Act. Benefits and refunds are recognized when due and payable in
accordance with the terms of the individual plan.

Investments of the plan are reported at fair value. Short-term investments are
reported at cost, which approximates fair value. Securities traded on a national or
international exchange are valued at the last repOlied sales price at current exchange
rates. Mortgages are valued on the basis of future principal and interest payments,
and are discounted at prevailing interest rates for similar instruments. The fair value
of real estate investments is based on independent appraisals. Investments that do not
have an established market are reported at estimated fair value.

Contributions and Funding Policy

The plan's funding policy provides for periodic employer contributions at actuarially
determined rates that, expressed as a percentage of annual covered payroll, are
sufficient to accumulate sufficient assets to pay benefits when due. Level percentage
of payroll employer contribution rates are determined using the aggregate actuarial
funding method and the same actuarial assumptions used to calculate the pension
benefit calculation.

As a condition of participation, employees are to contribute between 7% to 17%
(currently 7%) of their salary as stipulated in the Act. Interest is credited to employee
accounts each year at the annual rate of 5.5% as voted upon by the County Retirement
Board.




                                         40
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31, 2010


The County's annual required contribution to the Fund for 2010 was $3 ,581,228.

The County's annual pension cost and related information for the plan is as follows:

        Annual pension cost                               $ 3,581,228
        Contributions made                                $ 3,581,228
        Actuarial valuation date                             1/1/2011
        Amortization method                             Level Percentage
                                                            Closed
        Amortization period                                  30 years
                                                              Closed
        Actuarial cost method                               Entry Age
        Asset valuation method                              Five-Year
                                                            Smoothed
                                                             Market
       Actuarial assumptions:
        Investment rate of return                             7.50%
        Projected salary increases                            3.50%
        Underlying inflation rate                             3.00%

Effective January 1, 2010, the salary assumption was changed. The effect of
changing the salary assumption from 4.0% to 3.5% is that the actuarial accrued
liability decreased by $1,578,169. The County recognizes the fact that the resulting
lower annual required contributions may be at the expense of higher future annual
required contributions.

 Trend Information

                               Annual             Percentage            Net Pension
                               Pension             ofAPC                Obligation
     Year Ending              Cost (APC)          Contributed             (Asset)

      12/3112008             $      91,925             100.0%           $
      12/3112009                 2,407,359             100.0%
      12/3112010                 3,581,228             100.0%



                                           41
  COUNTY OF WASHINGTON, PENNSYLVANIA
                  NOTES TO THE PRIMARY GOVERNMENT
                        FINANCIAL STATEMENTS

                        YEAR ENDED DECEMBER 31,2010


  Funded Status

  The County's funded status and related information for the plan as of the latest
  actuarial valuation date, January 1,2011, is as follows:

                       Actuarial       Excess of                               Excess (Deficiency)
      Actuarial         Accrued         Assets                                   as a Percentage
      Value of      Liability (AAL)   Over (Under)     Funded     Covered          of Covered
       Assets          Entr~ Age         AAL            Ratio      Payroll           Payroll
    $ 95,337,039    $118,310,447      $ (22,973,408)   80.58%   $ 40,421,525       (56.83)%

  The required schedule of funding progress included as required supplementary
  information immediately following the notes to the primary government financial
  statements presents multi-year trend information about whether the actuarial value of
  plan assets is increasing or decreasing over time relative to the actuarial accrued
  liability for benefits.

  The Pension Trust Funds are invested in various types of financial instruments. This
  diversification of the investment portfolio serves to assist in mitigating the various
  types of risks associated with different types of financial instruments. Due to the
  level of risk associated with certain investments, it is at least reasonably possible that
  changes in the values of investments could occur and that such a change could
  materially affect the amount reported on the statement of fiduciary net assets. During
  2010, the Pension Trust Funds experienced a significant increase in market value due
  to changing market conditions which partially offset significant declines in market
  value recognized in prior periods.


6. OTHER POST-EMPLOYMENT BENEFITS (OPEB)

  In addition to the pension benefits described in Note 5, the County provides post-
  retirement health care benefits to certain retired employees, in accordance with the
  various union contracts and other employment agreements. The County funds all
  County contributions on a pay-as-you-go basis. The benefit limits, funding policy,
  and employee and employer contributions are established and amended through union
  contracts or the County's Board of Commissioners. The post-employment benefit
  plan (plan) is not accounted for as a trust fund, an irrevocable trust has not been
  established, and the plan does not issue a separate report.




                                            42
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRlMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31,2010


Plan Description. The County's plan is a single-employer defined benefit healthcare
plan that covers all employees of the County whose employment commenced before
April 1, 2004. The plan provides healthcare coverage to plan members and their
dependents.

Funding Policy. The County's contribution is based on projected pay-as-you-go
financing requirements. For fiscal year 2010, total cash disbursements for other post-
retirement benefit for current retirees or their dependents totaled $2,215,822. Active
employees' contributions for medical, dental, or vision insurances vary per contract
and position.

Annual OPEB Cost. The County's annual OPEB cost (expense) for the plan is
calculated based on the annual required contribution of the employer (ARC), an
amount actuarially determined in accordance with the parameters of GASB Statement
No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and to amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years.

Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the
future. Examples include economic assumptions about the discount rate and the
health care cost trend rates, medical assumptions, and demographic assumptions.
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary information
following the notes to the primary government financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is increasing
or decreasing over time relative to the actuarial accrued liabilities for benefits.

Actuarial Methods and Assumptions. Projections of benefits for financial reporting
purposes are based on the substantive plan (the plan as understood by the employer
and the 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 actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations.




                                         43
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                       YEAR ENDED DECEMBER 31,2010



The following table shows the components of the County's annual OPEB cost for the
year, the amount actually contributed to the plan, and changes in the County's net
OPEB obligations, as well as the assumptions used to calculate the net OPEB
obligation:

         Annual required contribution                       $         4,544,738
         Interest on net OPEB obligation                                272,394
         Adjustment to annual required contribution                   1,042,068

         Annual OPEB cost                                             5,859,200
         Contributions made                                          (2,215,822)

         Increase (decrease) in net OPEB obligation                   3,643,378
         Net OPEB obligation (asset), beginning of year               4,639,539

           Net OPEB obligation (asset), end of year         $         8,282,917



              Actuarial valuati on date                    111/2010

              Actuarial cost method                        Projected Unit Credit

              Amortization method                          Level dollar, open

              Asset valuation method                       Market Value

              Remaining amortization period                30 years

             Actuarial assumptions:
               Projected salary inflation     *            NIA

                Investment rateofretum      *              4.5%

                Health care inflation rates                12% initial, 5% ultimate

                * Inel udes inflation at                   3.(Yl;~



The County is required to have an actuarial valuation report performed biennially.
The County does not plan to fund the actuarial accrued liability nor is it required to be
recorded as a liability under current GASB standards.




                                                  44
  COUNTY OF WASHINGTON, PENNSYLVANIA
                  NOTES TO THE PRIMARY GOVERNMENT
                        FINANCIAL STATEMENTS

                        YEAR ENDED DECEMBER 31 , 2010


  The schedule of funding progress as of the latest actuarial valuation date, January 1,
  2010, for the postemployment healthcare benefits is as follows :

                                                                                                  UAAL as a
      Actuarial     Actuarial Accrued      Unfunded                                              Percentage of
       Value            Liability       Accrued Liability         Funded          Covered           Covered
      of Assets          (AAL)              (UAAL)                 Ratio          Payroll           Payroll
         (a)               (b)               (b )-(a)             (a)/(b)           (c)           [(b)-(a)]/(c)

                    $      42,360,865       $        42,360,865    0.0%         $ 40,609,970        104.3%

  Three-Year Trend Information

                           AnnualOPEB             Percentage of                NetOPEB
      Year Ending           Cost (AOC)           AOC Contributed            Obligation (Asset)
  December 31 , 2010      $    4,445 ,542                  50%              $       8,282,917
  December 31, 2009            3,134,978                   54%                      4,639,539
  December 31, 2008            4,596,579                   31%                      3,182,921


7. REAL ESTATE TAXES

  The County's property tax is levied each January 1 on the assessed values as of the
  prior November 15 for all real property located in the County. The assessed value at
  December 2010, upon which the 2010 levy was based, was $1,535 ,178,184.

  The County is limited by the laws of the Commonwealth of Pennsylvania to levy
  taxes up to $25.00 per $1 ,000 of assessed valuation for General Government
  Services, and limited to $10.00 per $1,000 of valuation for payment of rentals to any
  municipality and is unlimited for the payment of principal and interest on long-term
  debt. The tax rate to finance General Government Services other than the payment of
  principal and interest on long-term debt for the year ended December 31, 2010, was
  22.85 mills per $1 ,000. The tax rate to finance the payment of principal and interest
  on long-term debt for the year ended December 31, 2010 was 2.05 mills per $1,000.

  Taxes for 2010 were billed in January 2010 and were due on the following schedule:
  at two percent discount if paid by March 31, 20 10; at face value if paid between April
  1, 2010 and June 30, 2010; and at 10 percent penalty if paid between July 1, 2010 and



                                                45
         COUNTY OF WASHINGTON, PENNSYLVANIA
                       NOTES TO THE PRIMARY GOVERNMENT
                             FINANCIAL STATEMENTS

                              YEAR ENDED DECEMBER 31,2010


        January 15, 2011. The County placed liens on all property for which the 2010 tax
        was not paid by January 15, 2011. Current tax collections for the year ended
        December 31, 2010, were approximately 96 percent of the tax levy.

        Taxes receivable are reflected on the statement of net assets net of an allowance for
        doubtful accounts of$707,141.

    8. LONG-TERM DEBT

        The following is a summary of changes in long-term obligations of the County for the
        year ended December 31, 2010:

                                   Balance at          Additions                       Balance at
                                  December 31,           and                          December 31 ,      Due within
                                     2009              Accretion        Pa~ments          2010            one ~ear
Governmental Activities:
 Guaranteed Lease Reveme Bonds,
   Series of 1992                 $ 10,667,277     $      608,445   $    1,340,000    $ 9,935,722        $ 1,345,000
 General Obligation Bonds,
   Series of1998*                      (880,000)                          (205,000)         (675 ,000)       (165 ,000)
 General Obligation Bonds,
   Series of20 02A                    11,790,000                             5,000        11 ,785,000           5,000
 General Obligation Bonds,
   Series of20 03                     4,890,000                             45,000         4,845,000           45,000
 General Obligation Bonds,
   Series of20 03A                     5,935,000                           590,000         5,345 ,000         600,000
 General Obligation Bonds,
   Series of20 07A                    14,666,218          115,429           95,000        14,686,647          100,000
 General Obligation Bonds,
   Series of2007B                      3,770,000                           155,000         3,615,000          165,000
     Total Long-Tenn Debt         $ 50,838,495     $      723,874   $    2,025,000    $ 49,537,369       $ 2,095,000

Business-ty pe Activities:
  General Obligation Bonds,
    Series ofl998*                $     880,000    $                $      205,000    $      675,000     $    215,000

        * The refunding of the General Obligation Bonds, Series of 1998 was applied against
        the governmental activities portion of the debt as payment terms from the Washington
        County Health Center to the County remained unchanged as a result of the County's
        refunding payments. These excess amounts will be applied by the County to other
        debt service.


                                                   46
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31, 2010


General obligation debt payable at December 31 , 2010, is composed of the following
individual issues:

Guaranteed Lease Revenue Bonds, Series of 1992

The County has guaranteed the Series of 1992 Revenue Bonds (1992 Authority
Bonds) of the Washington County Authority (Authority), with an original principal
amount of $17,162,970. These 1992 Authority Bonds were issued primarily to
finance capital proj ects. Portions of the 1992 Authority Bonds were refunded by the
Guaranteed Lease Revenue Refunding Bonds, Series A of 1993, which were later
retired, and by the General Obligation Bonds, Series 2002A. Another portion of the
bonds, $4,777,357, was advance refunded with the General Obligation Bonds, Series
2007 A. After consideration of the refundings, the 1992 Authority Bonds consist
currently of Capital Appreciation Bonds with an aggregate original issuance amount
of $11,852,970 with maturity values of $350,000 to $1,865 ,000 annually through
2020 issued to yield rates from 6.35% to 6.85%. The Capital Appreciation Bonds
accrue and compound interest on a semi-annual basis and are carried at cost plus
accrued interest. Total maturity value of the Capital Appreciation Bonds is
$29,190,000.

General Obligation Bonds, Series of 1998

At December 31 , 2010, the balance of the 1998 Bonds payable was $0, as the bonds
were currently refunded with the proceeds of General Obligation Bonds, Series
2007A.

General Obligation Bonds, Series of 2002A and B

On March 1, 2002, the County issued General Obligation Bonds, Series of 2002A of
$13,925 ,000, and General Obligation Taxable Bonds, Series of2002B of $1 ,650,000
totaling $15,575,000 for the purpose of providing funds for the advance refunding of
the County's 1992 Bonds, a portion of the Guaranteed Lease Revenue Bonds, Series
of 1992, and the 1998 Bonds, and to fund various capital projects. A portion of the
2002A Bonds, $1,925,000, was advance refunded with the General Obligation Bonds,
Series 2007 A.

Interest payments are payable semi-annually on March 1 and September 1 with rates
ranging from 4.70% to 5.125% until maturity on the general obligation bonds. The
2002 Bonds have a final maturity date on September 1, 2027. The 2002 Bonds that
mature on and after September 1, 2013 are subject to redemption prior to maturity, at


                                        47
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31, 2010


the option of the County, on September 1,2012 or on any date thereafter, as specified
in the 2002 Bonds issuance offering statement.

General Obligation Bonds, Series of 2003

On March 15, 2003, the County issued $8,125,000 of General Obligation Bonds,
Series of 2003 (2003 Bonds). The proceeds of the 2003 Bonds were used to currently
refund the County's Guaranteed Lease Revenue Refunding Bonds, Series A of 1993.
A portion of the 2003 Bonds, $825,000, was advance refunded with the General
Obligation Bonds, Series 2007C.

Interest payments are payable semi-annually on June 1 and December 1 with rates
ranging from 4% to 5% until maturity. The 2003 Bonds have a final maturity date on
June 1, 2022. The 2003 Bonds that mature on and after June 1, 2022 are subject to
redemption prior to maturity, at the option of the County, on December 1,2013 or on
any date thereafter, as specified in the 2003 Bonds issuance offering statement.

General Obligation Bonds, Series of 2003A

On July 1, 2003, the County issued $8,305,000 of General Obligation Bonds (2003A
Bonds). The proceeds of the 2003A Bonds were used to advance refund $7,400,000
principal amount of the County's 1998 Bonds.

Interest payments are payable semi-annually on March 1 and September 1 with rates
ranging from 1.50% to 4.20% until maturity. The 2003A Bonds have a final maturity
date on September 1, 2022. The 2003A Bonds that mature on and after September 1,
2014 are subject to redemption prior to maturity, at the option of the County, on
September 1, 2013 or on any date thereafter.

Washington County Note Payable

The County borrowed $6 million from the Authority out of the proceeds of the
Authority's Series 1999 Capital Funding Revenue Bonds (Authority Bonds) for the
purpose of creating a pool of funds for various local municipalities' infrastructure
projects within the County. A portion of the note was repaid with proceeds from the
General Obligation Bonds, Series 2007B and the remaining balance was paid in full
during 2008.

During 2007, a sinking fund was established by the County related to loans
previously reported in the County loan pool. Monthly principal and interest payments


                                        48
    COUNTY OF WASHINGTON, PENNSYLVANIA
                 NOTES TO THE PRIMARY GOVERNMENT
                       FINANCIAL STATEMENTS

                         YEAR ENDED DECEMBER 31, 2010


    made by the local municipalities are deposited into the County' s sinking fund, the
    balance of which, together with any investment earnings, is used to pay amounts due
    on the General Obligation Bonds, Series 2007B . The sinking fund balance at
    December 31, 2010 totaled $1,099,660 and is reported as cash and cash equivalents
    on the balance sheet.

    General Obligation Bonds, Series of 2007 A, B, and C

    On May 17, 2007, the County issued $18 ,630,219 in General Obligation Bonds and
    $1 ,080,000 in General Obligation Taxable Bonds to advance refund portions of the
    1992, 2002A, and 2003 bond issuances, to current refund a portion of the 1998 bond
    issuance, to fund a capitalized interest deposit, to payoff a portion of the loan pool
    discussed above, and to fund various capital projects. Interest payments are payable
    semi-annually on March 1 and September 1 with rates ranging from 4.00% to 5.29%
    until maturity.

    A portion of the Series 2007 A Bonds consist of Capital Appreciation Bonds with an
    aggregate original issuance amount of $2,215,220 with maturity values of $3,475 ,000
    and $3,425,000 which mature in 2031 and 2032, respectively, issued to yield rates of


\   4.65% and 4.66%, respectively. The Capital Appreciation Bonds accrue and
    compound interest on a semi-annual basis and are carried at cost plus accrued interest.
    The 2007C Series was paid in full during 2008 .

    Annual debt service requirements are as follows:




                                            49
COUNTY OF WASHINGTON, PENNSYLVANIA
              NOTES TO THE PRIMARY GOVERNMENT
                    FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31 , 2010


                            Governmental Activities            Business-ty~   Activities
      Years               Principal         Interest           Principal         Interest
       2011           $    2,095 ,000    $     1,727,626   $      215,000     $     32,875
       2012                2,120,000           1,704,779          225,000           22,663
       2013                2,135 ,000          1,680,801          235,000           11,750
       2014                2,185 ,000          1,646,379
       2015                2,095 ,000          1,627,048
    2016-2020             10,815,000           7,701,726
    2021-2025             12,350,000           5,916,809
    2026-2030             17,535,000           2,490,668
    2031 -2032             1,685,220           4,684,780
                          53,015 ,220         29,180,616          675,000           67,288
Accreted interest         (4,008,161)          4,008,161

                      $ 49,007,059       $ 33,188,777      $      675,000      $    67,288

At December 31, 2010, the County has $12,865,000 of defeased debt outstanding
relating to the various debt issuances.

In conjunction with their swaption transaction described in Note 12, the County
received an up front cash payment. The upfront cash payment received by the
County was considered to be a borrowing at a rate of 3.176%. As of December 31,
2010, the borrowing had an outstanding balance of$1,035,148. No payments will be
made on the borrowing until the swaption is exercised by the counterparty. If
exercised, principal and interest payments will begin in March 2013 and will continue
until the borrowing'S final maturity in 2027, as summarized in the table below.
Interest is currently being accreted to the principal amount annually. Accreted
interest on the borrowing was $169,148 at December 31, 2010.




                                         50
  COUNTY OF WASHINGTON, PENNSYLVANIA
                NOTES TO THE PRIMARY GOVERNMENT
                      FINANCIAL STATEMENTS

                        YEAR ENDED DECEMBER 31 , 2010


        Year Ending
        December 31,               Principal            Interest           Total
            2011               $                    $                  $
            2012
            2013                        58,742              34,752            93,494
            2014                        60,622              32,872            93,494
            2015                        62,563              30,931            93,494
          2016-2020                    344,169             123,301           467,470
          2021-2025                    402,898              64,572           467,470
          2026-2029                    179,794               7,194           186,988
             Total             $     1,108,788      $      293,622     $    1,402,410
    Less: deferred interest            (73,640)
                               $     1,035,148

  Deferred interest represents interest not accreted as of year end.


9. CONTINGENCIES

  At year-end, various claims have been paid and closed where others are outstanding
  relating to workers' compensation injuries under existing insurance policies.
  Provisions are recorded in the General and Enterprise funds for benefit claims
  incurred but unpaid at December 31, 2010. For one particular claim the county has
  accrued a liability of $1 million, which represents the full amount of the County's
  insurance deductible, due to the probability of loss on the claim.

  Amounts received or receivable from grant agencies are subject to audit and
  adjustment by grantor agencies, principally the state government. Any disallowed
  claims, including amounts already collected, may constitute a liability of the
  applicable funds. The amount, if any, of expenditures which may be disallowed by
  the grantor cannot be determined at this time although the County expects such
  amounts, if any, to be immaterial.

  The County has been ordered by the court to conduct a reassessment of properties as
  a result of a filing by local school districts. Costs of complying with the court order
  are estimated to be as much as $7 million. The County anticipates issuing debt in




                                               51
   COUNTY OF WASHINGTON, PENNSYLVANIA
                 NOTES TO THE PRIMARY GOVERNMENT
                       FINANCIAL STATEMENTS

                         YEAR ENDED DECEMBER 31,2010


   order to conduct the reassessment. As of the date of this report, no new debt has been
   issued and no deadline to comply with the court order was established.

   There are various other matters of pending litigation in which the County is involved.
   The County believes it has meritorious defenses and intends to contest these matters.
   The amount of liability, if any, related to these matters is not subject to determination.
   Accordingly, the financial statements do not include any adjustment for possible
   effects.


10. RISK MANAGEMENT

   The County is exposed to various risks of loss related to torts; theft of, damage to and
   destruction of assets; errors and omissions; and natural disasters for which the County
   carries commercial insurance. There have been no significant changes in insurance
   coverage since the prior year.


11. GUARANTEE OF DEBT

   The County guarantees the debt service payments of the Fair Board bank loan. The
   original amount borrowed by the Fair Board was $600,000. For the year ended
   December 31, 2010, principal and interest payments totaled $50,032. The balance
   outstanding was approximately $243,989 at December 31, 2010, with an interest rate
   of 6.0%. During 2010, the County made no contributions to the Fair Board. County
   management does not anticipate any contributions being required in the future. The
   loan has a maturity date of September 1, 2016.


12. SwAPTION

   In May 2005, the County entered into a swaption contract that provided the County
   an up-front payment of $866,000. As a synthetic refunding of its 2002 General
   Obligation Bonds, this payment represents the present-value, risk-adjusted savings of
   a refunding as of June 1,2012, without issuing refunding bonds at May 2005. The
   swaption gave the counterparty the option to make the County enter into a pay-fixed,
   receive-variable interest rate swap on the first day of each month during the period
   commencing on, and including, October 1, 2012 and terminating on, September 1,
   2027. This contract was amended, effective September 21, 2006. It was amended a
   second time, effective May 16, 2007, due to issuance of the General Obligation
   Bonds 2007 Series.


                                             52
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                      YEAR ENDED DECEMBER 31, 2010


If the option is exercised, the County will current refund the existing 2002 General
Obligation Bonds as of the exercise date and will issue Variable Rate Refunding
Bonds (Refunding Bonds). The intention of the swap is to effectively change the
County's variable interest rate on the Refunding Bonds to a synthetic fixed rate of
4.874%.

Per the amended swap agreement, the County would receive interest at the variable
rate of 59.10% of the 10-year ISDA swap rate while paying a fixed rate of 4.874%.
The 10-year ISDA swap rate is designed to approximate the 10 year LIBOR (London
Interbank Offered Rate) rate. The interest payments are calculated based on a
notional amount of $11,775,000, which reduces beginning on September 1,2012 so
that the notional amount approximates the principal outstanding on the Refunding
Bonds. The swap would expire on September 1, 2027 consistent with the last
anticipated principal payment on the Refunding Bonds.

During 2007, the County paid a swap termination fee of $200,500 in order to
terminate the portion of the swap in conjunction with the General Obligation Bonds
2007 Series bond issue.

If the option is exercised, the County would make net swap payments as required by
the terms of the contract, that is, receiving a variable rate as noted above for the term
of the swap from the counterparty and making a fixed rate payment to the
counterparty.

As of December 31, 2010, the swaption had a fair value of ($821,695). As the
swaption is considered to be an investment type derivative instrument per accounting
standards, it is reported as a derivative liability on the statement of net assets. The
changes in fair market value of ($351,525) during fiscal year 2010, are recorded as a
component of investment income on the statement of activities. The mark to market
value is calculated using a combination of the zero-coupon method and an option
pricing model.

A portion of the upfront cash payment received by the County at the time the
swaption was entered into is considered to be a borrowing at a rate of 3.176%. As of
December 31, 2010, the borrowing had an outstanding balance of $1,035,148 and is
disclosed in more detail in Note 8.

The swap agreement requires the County to post collateral in the event its credit
rating falls below Baal as issued by Moody's Investors Service or BBB+ as issued by
Standard & Poor's. If the County does not post collateral, the swap may be


                                          53
COUNTY OF WASHINGTON, PENNSYLVANIA
             NOTES TO THE PRIMARY GOVERNMENT
                   FINANCIAL STATEMENTS

                     YEAR ENDED DECEMBER 31 , 2010


terminated by the counterparty. The County's credit rating is A+; therefore, no
collateral has been posted at December 31, 2010.

Through the use of derivative instruments sl,lch as this swaption, the County          IS
exposed to a variety of risks, including credit risk and interest rate risk.

   •   Credit risk is the risk that a counterparty will not fulfill its obligations.
       Although the underlying swap exposes the County to credit risk should the
       swap be executed, the swaption itself does not expose the County to credit
       risk. On December 31 , 2010, the swaption counterparty is rated Aa1 by
       Moody's Investors Services, Inc. and AA- by Standard & Poor's, nationally
       recognized statistical rating organizations. If the option was exercised and the
       counterparty failed to perform according to the terms of the swap agreement,
       there is some risk of loss to the County, up to the fair market value of the
       swaption. However, as of December 31, 2010, the swaption had a negative
       fair market value to the County and as such the County had no credit risk
       exposure related to this transaction. As of December 31, 2010, there is no
       collateral posted by the Counterparty related to this transaction, nor has there
       been any collateral posted since inception of the swaption.

   •   Interest rate risk is the risk that changes in interest rates will adversely affect
       the fair values of the County's financial instruments or the County's cash
       flows. The County's swaption is exercisable by the counterparty beginning in
       October 2012. The swaption is highly sensitive to changes in interest rates;
       changes in the variable rate will have a material effect on the swaption's fair
       market value. If exercised, the resulting interest rate swap will have
       scheduled maturity dates beginning in fiscal year 2013 through 2027.




                                          54
Required Supplementary
      Information
                                                COUNTY OF WASHINGTON, PENNSYLVANIA
                                                              SCHEDULE OF FUNDING PROGRESS
                                                                FOR THE PENSION TRUST FUND


                                                            Actuarial      Excess (Deficiency)                              Excess (Deficiency)
                     Actuarial             Actuarial         Accrued            of Assets                                     as a Percentage
                   . Valuation             Value of      Liability (AAL)      Over (Under)       Funded       Covered           of Covered
                       Date                 Assets          Entry Age             AAL             Ratio       Payroll              Payroll

        VJ
        (1l
                     1/1 /2011        $     95,337,039   $ 118,310,447     $     (22,973 ,408)   80.58%   $   40,421 ,525       (56.83%)
        (1l
        Pl
                     1/ 112010              90,805,227     112,823, 135          (22,017,908)    80.48%       40,609,970        (54.22%)
        ()
        ()           11112009               95,604,856     107,377,133           (11,772,277)    89.04%       40,348,624        (29. 18%)
        0

      "0
        a
        Pl
        ::l
      '-<
       ::l
      fJCI
       ::l
       0
       .-+
       (1l
               Source: Actuarial reports
       C/l
V'I    .-+
V'I    0
       C/l
       C
      "0
      "0
       (1l
       a
       (1l
       ::l
       .-+
       Pl
       .....
      '-<
       C/l
       ()
       ::l'"
       (1l
       0-
       S
       (1l
       :n
    COUNTY OF WASHINGTON, PENNSYLVANIA
     SCHEDULE OF CONTRIBUTIONS FROM EMPLOYERS AND
              OTHER CONTRIBUTING ENTITIES
               FOR THE PENSION TRUST FUND


             Annual                       Annual
             Calendar                    Required              Percentage
              Year                     Contributions           Contributed

               2005                $       2,041 ,325             100%
               2006                        1,833,433              100%
               2007                        1,489,947              100%
               2008                        2,801,192              100%
               2009                        2,871,092              100%
               2010                        3,581 ,228             100%


The information presented above was determined as part of the actuarial valuations for
the dates indicated.




                 See accompanying notes to supplementary schedules.

                                            56
                                              COUNTY OF WASHINGTON, PENNSYLVANIA
                                                             SCHEDULE OF FUNDING PROGRESS
                                                        FOR OTHER POST-EMPLOYMENT BENEFIT PLANS


                                                                                                                                    (Overfunded)/Unfunded
                                       (a)                 (b)              (Overfunded)            (alb)           (c)                Actuarial Accrued
                  Actuarial         Actuarial       Actuarial Accrued     Unfunded Actuarial       Funded         Covered        Liability (b-a) as a Percentage
                Valuation Date    Value of Asset        Liability          Accrued Liability        Ratio         Payroll         of Covered Payroll ((b-a)/c)

                   11112010       $                 $      42,360,865      $      42,360,865        0.0%        $ 40,609,970                104.3%
       \/J
       (1)
                   1/112008                                40,769,744             40,769,744        0.0%          38 ,272,892               106.5%
       (1)

       Pl
       (")
       (")
       0
       S      Note: Actuarial valuation as of01l01l08 represents the initial valuation for the plan as required under GASB Statement No. 45 (implemented in 2008).
       '0
       Pl           Actuarial valuation reports are only performed on a biennial basis for other post-employment benefit plans.
       ~
       5·
       (JQ
       :::s
       ...
       0
       (1)


l.Il
-.)
       ...
       en
       0
        en
        C
       '0
       '0
       (;
       S
       ...
       (1)
       :::s
       ~
       en
       (")
       ::r
       (1)
       0-
       C
       (;
       ~
          COUNTY OF WASHINGTON, PENNSYLVANIA
          NOTES TO REQUIRED SUPPLEMENTARY SCHEDULES

                           YEAR ENDED DECEMBER 31 , 2010


    1. PENSION INFORMATION

      The information presented in the required supplementary pension schedules was determined
      as part of the actuarial valuations at the dates indicated. Additional information as of the
      latest actuarial valuation follows:


                   Actuarial valuation date                         111 /2011

                    Actuarial cost method                          Entry Age



                    Amortization method                         Level Percentage
                                                                    Closed

                    Amortization period                              30 years
                                                                      Closed

                    Asset valuation method                          Five-Year

/                                                                   Smoothed
                                                                     Market
                    Actuarial assumptions:
                     Investment rate of return                        7.50%
                     Projected salary increases                       3.50%
                     Underlying inflation rate                        3.00%




                                                  58
      COUNTY OF WASHINGTON, PENNSYLVANIA
       NOTES TO REQUIRED SUPPLEMENTARY SCHEDULES

                          YEAR ENDED DECEMBER 31 , 2010


2. OPEB INFORMATION
  The information presented in the required supplementary OPEB schedules was determined as
  part of the actuarial valuations at the dates indicated. Additional information as of the latest
  actuarial valuation follows:

  Actuarial Data:

     Valuation date:                   1/ 1120 I 0

     Actuarial cost method:            Projected Unit Credit

     Amortization method :             Level dollar, open

     Amortization period:              30 years

     Asset valuation method            Market Value

  Economic Assumptions:

     Projected salary inflation    *                 N/A

     Investment rate of return    *                  4.50%

     Health care inflation rates       12% initial, 5% ultimate

     * Includes inflation at                         3.00%




                                                     59
Supplementary Information
[ THIS PAGE INTENTIONALLY LEFT BLANK ]
 County of Washington,
     Pennsylvania
Combining and Individual Fund
    Financial Statements
  Year Ended December 31 , 2010
                                                              COUNTY OF WASHINGTON, PENNSYLVANIA
                                                                                      OTHER GOVERNMENTAL FUNDS
                                                                                       COMBINING BALANCE SHEET
                                                                                                    DECEMBER 3 1,20 10


                                                                                                                                                                          Capital Projects
                                                                                           S[lecial Revenue Funds                                                              Funds
                                                                                                    Hazardous                                                                                                      Total
                                                                                                     Materials                                                                                                     Other
                                                            A irport                               Emergency            Domestic                         Airport                 Capital                        Governmental
                                                           O[lerati ng          Liquid Fuels        Res[lonse           Relations         Total      Ca[lital Pro jects       Ex[lend itures       Total           Funds

                           Assets

     Cash and cash equ ivalents                        $          8,255     $       828,972     $     136,524       $     201 ,241    $ 1, 174,992   $                    $      2,365 ,066    $   2,365,066    $ 3,540,058
     Due from other governments                                                      53,254             9,230             295 ,547        358,031                                   51,600            5 1,600       409,63 1
     Interest and other                                                               3,463               109              10,422           13,994                                 380,6 14          380,6 14         394,608
     Due from other fu nds                                                                                                 37,343           37,343                                   9,375             9,375           46 ,718
     Prepaids and other                                                                                                        296             296                                                                         296
             T ota l Assets                            $          8,255     $       885,689     $     145,863       $     544,849     $ 1,584,656    $                    $      ?,806,655     $   ? ,806,655   $ 4,39 1,3 11

             Lia bilities a nd Fund Balance

'"
0    Liabilities:
       Accounts payabl e                               $        24 ,105     $       171,527     $      18,264       $      2 1,968    $   235,864    $                    $        360,722     $     360,722    $    596,586
       Accrued payroll and related liabi lities                 10,155               32, 152            1,569             104,265         148,141                                                                    148,141
       Deferred revenue                                                              92 ,467            7,360                              99,827                                                                     99,827
       Due to other funds                                                                396            2,551                               2,947                                   22,445            22 ,445         25,392
       Advances due to other funds                                                                                        493 ,466        493,466                                                                    493 ,466

           Total Liab ilities                                   34,260              296,542            29,744             6 19,699        980 ,245                                 383 ,167          383 ,167       1,363,412

     Fund Balance:
       Reserved fo r:
         Encumbrances                                              811                                                                        811                                  169 ,873          169,8 73         170,684
         Prepaid expenses                                                                                                     296             296                                                                          296
         Capital proj ects                                                                                                                                                       2,253 ,6 15       2,253 ,615       2,253 ,615
       Unreserved, undesignated                                (26 ,8 16)          589, 147           11 6,11 9           (75 ,146)       603,304                                                                     603,304

           Total Fund Balance                                  (26,005)            589,147            11 6, 11 9          (74,850)        604,411                                ? ,423 ,488       2,423 ,488       3,027,899

              T ota l Liabilities and F und Ba lance   $         8,255      $      885,689      $     145 ,863      $     544,849     $ 1,584,656    $                    $      2,8 06 ,655   $   2,806,655    $ 4,3 9 1,311
                                                               COUNTY OF WASHINGTON, PENNSYLVANIA
                                                                   OTHER GOVERNMENTAL FUNDS
                                           COMBINING STATEMENT OF REVENUES , EXPENDITURES, AND CHANGES IN FUND BALANCE

                                                                                           YEAR ENDED DECEMBER 3 1, 2010


                                                                                                                                                                        Capital Projects
                                                                                       SEecial Revenue Funds                                                                Funds
                                                                                             Hazardous                                                                                                            Total
                                                                                              Materials                                                                                                           Other
                                                       Airport                               Emergency             Domestic                             Airport               Capital                          Governmental
                                                      °Eeratin g          Liguid Fuels        ResEonse             Relations          Total          CaEital Projects       EXEend itures        Total            Funds
     Revenues:
      Taxes                                       $                   $                     $                  $                  $                  $                  $                    $                 $
      Intergovernmental                                                       877,443            42,954             1,747, 15 1       2,667,548              20,836              664 ,329          685 , 165       3,352,7 I 3
      Charges for services                                204 ,250                               80,907               139,946           425 , I 03                                                                   425, I 03
      Interest                                                                   4,014              148                                   4,162                                   14,741            14,741            18,903
      Other                                                                                       4,775                10,8 00           15,575                                  680,5 7 0         680,520           696,095
          Total revenues                                  704,250             88 I ,457         128,784             1,897 ,89 7       3,112,388              20,836            1,359,590         1,380,426         4,49 7 ,8 I 4

     EXEenditures:
     Current:
       General government - judicial                                                                                2,572,747         2,572,747                                                                    2,572,747
       Public safety                                                                             96 ,68 1                                96 ,681                                                                       96,681
0-     Public works and enterprises                      252 ,275             895 ,6 I 9                                              1,147,894                                                                    1, 147,894
     Capital projects                                                                                                                                        21 ,370           1,614 ,637        1,636 ,007        1,636 ,007

          Total expenditures                             252 ,275             895 ,619           96 ,681            2,572,747         3,8 17,322            2 I ,370           1,614,637         1,636,007         5,453,329

     Excess (Deficiency) of Revenues
       Over Expenditures                                  (48 ,025)           (14, 162)          32,103              (674 ,850)        (704 ,934)              (534)            (255 ,047)        (255,58 I)        (960,515)

     Other Financing Sources (Uses):
      Operating transfers in                               45 ,000                                                    600,000          645 ,000                 534              300,000          300,534            945,534
      Operating transfers out                                                                                                                                                       (534)            (534)              (534)

          Total financing sources (uses)                   45,000                                                     600 ,000         645 ,000                 534              299,466          300,000            945,000

     Net Change in Fund Ba lance                           (3 ,025)           (14,162)           32,103               (74,850)          (59 ,934)                                 44,419            44,419           (15 ,5 15)

     Fund Balance:
       Beginning of year                                  (22 ,980)           603 ,309           84,016                                664,345                                 2,379,069         2,379,069         3,043 ,4 I 4

       End of year                                $       (26 ,005)   $       589,147       $   116,119        $      (74,850)    $    604,411       $                  $      2,423,488     $   2,423,488     $   3,027,899
               COUNTY OF WASHINGTON, PENNSYLVANIA
                                   SPECIAL REVENUE FUNDS

                            AIRPORT OPERATING FUND
                    STATEMENT OF REVENUES , EXPENDITURES, AND
                  CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

                                  YEAR ENDED DECEMBER 31 , 2010


                                                Budgeted Amounts               Actual
                                             Original       Final             Amounts          Variance
Revenues:
 Charges for services                    $    173 ,900    $   173 ,900    $     204,250    $       30,350

Expenditures:
 Public works and enterprises                 286,921         286,921           252,275            34,646

Excess (Deficiency) of Revenues
 Over Expenditures                           (113 ,021)       (113,021)         (48,025)           64,996

Other Financing Sources (Uses):
 Operating transfer in                        100,000         100,000            45,000           (55,000)

Net Change in Fund Balance               $     (13,021)   $    (13,021)   $      (3,025)   $        9,996




                                                    62
           COUNTY OF WASHINGTON, PENNSYLVANIA
                                  SPECIAL REVENUE FUNDS

                           LIQUID FUELS FUND
                STATEMENT OF REVENUES, EXPENDITURES, AND
              CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

                                 YEAR ENDED DECEMBER 31 , 2010


                                                 Original and
                                                Final Budgeted
                                                   Amounts              Actual          Variance
Revenues:
 Intergovernmental:
   State liquid fuels tax                           $   3,789,250   $    877,443    $ (2,911,807)
 Interest                                                   5,000          4,014            (986)

   Total revenues                                       3,794,250        881,457        (2,912,793)

Expenditures:
 Public works and enterprises:
   Highways and bridges                                 3,791,146        895,619        2,895,527

Excess (Deficiency) of Revenues
 Over Expenditures                                          3,104        (14,162)          (17,266)

Other Financing Sources (Uses):
 Operating transfer in                                     50,000                           50,000

Net Change in Fund Balance                          $      53,104   $    (14,162)   $       32,734




                                               63
          COUNTY OF WASHINGTON, PENNSYLVANIA
                              SPECIAL REVENUE FUNDS

           HAZARDOUS MATERIALS EMERGENCY RESPONSE FUND
              STATEMENT OF REVENUES, EXPENDITURES, AND
            CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

                             YEAR ENDED DECEMBER 31,2010



                                            Original and
                                          Final Budgeted         Actual
                                             Amounts            Amounts         Variance
Revenues:
 Intergovernmental:
   Federal grant                          $       9,000     $      26,196   $      17,196
   State grant                                    7,500            16,758           9,258
 Charges for services                            44,500            80,907          36,407
 Interest                                           150               148              (2)
 Other                                              500             4,775           4,275

     Total revenues                              61,650           128,784          67,134

Expenditures:
 Public safety                                    98,291           96,681            1,610

Excess (Deficiency) of Revenues
 Over Expenditures                        $      (36,641)   $      32,103   $       68,744




                                          64
               COUNTY OF WASHINGTON, PENNSYLVANIA
                                    SPECIAL REVENUE FUNDS

                              DOMESTIC RELATIONS FUND
                      STATEMENT OF REVENUES , EXPENDITURES, AND
                    CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

                                   YEAR ENDED DECEMBER 31 , 2010


                                                          Original and
                                                         Final Budgeted         Actual
                                                            Amounts            Amounts           Variance
Revenues:
 Intergovernmental:
   Department of Public Welfare - IV-D funds             $ 1,675,000       $ 1,491,652       $    (183 ,348)
   Department of Public Welfare - incentive                  275,000           255,499             (19,501)
 Charges for services                                        200,000           139,946             (60,054)
 Other                                                         5,000            10,800               5,800

   Total revenues                                             2,155,000         1,897,897          (257,103)

Expenditures:
 General government - judicial                                2,753,336         2,572,747          180,589

Excess (Deficiency) of Revenues Over Expenditures              (598,336)        (674,850)           (76,514)

Other Financing Sources (Uses):
 Operating transfer in                                         600,000           600,000

Net Change in Fund Balance                                $       1,664    $      (74,850)   $      (76,514)




                                                    65
        COUNTY OF WASHINGTON, PENNSYLVANIA
                             CAPITAL PROJECTS FUNDS

                   AIRPORT CAPITAL PROJECTS FUND
              STATEMENT OF REVENUES, EXPENDITURES, AND
            CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

                           YEAR ENDED DECEMBER 31, 2010



                                         Original and
                                        Final Budgeted        Actual
                                           Amounts           Amounts          Variance
Revenues:
 Intergovernmental:
   Federal grant                         $   475,000     $      20,836    $    (454,164)

Expenditures:
 Capital projects                            500,000            21,370          478,630

Excess (Deficiency) of Revenues
 Over Expenditures                            (25,000)            (534)          24,466

Other Financing Sources (Uses):
 Operating transfer in                        25,000              534            (24,466)

Net Change in Fund Balance               $               $                $




                                        66
        COUNTY OF WASHINGTON, PENNSYLVANIA
                              CAPITAL PROJECTS FUNDS

                     CAPITAL EXPENDITURES FUND
              STATEMENT OF REVENUES, EXPENDITURES, AND
            CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

                             YEAR ENDED DECEMBER 31, 2010


                                           Original and
                                          Final Budgeted          Actual
                                             Amounts             Amounts          Variance
Revenues:
 Intergovernmental                        $      150,000     $     664,329    $     514,329
 Interest                                         30,000            14,741          (15,259)
 Other                                           500,000           680,520          180,520

   Total revenues                                680,000          1,359,590         679,590

Expenditures:
 Capital projects                              1,705,000          1,614,637          90,363

Excess (Deficiency) of Revenues
 Over Expenditures                             (1,025,000)        (255,047)         769,953

Other Financing Sources (Uses):
 Operating transfers in                          300,000           300,000
 Operating transfers out                         (25,000)             (534)           24,466

   Total other financing sources (uses)          275,000           299,466            24,466

Net Change in Fund Balance                 $    (750,000)    $       44,419   $      794,4 19




                                          67
                                 COUNTY OF WASHINGTON, PENNSYLVANIA
                                                        FIDUCIARY FUNDS

                                                  ALL AGENCY FUNDS
                                               COMBINING BALANCE SHEET
                                                        DECEMBER 31,2010


                                                                                                                                   Court
                                                             Recorder           Register                       Clerk of         Administrator -
                                           Treasurer         of Deeds           of Wills    Prothonotary       Courts      ~ervi s ion      Fees
                     Assets

     Cash and cash equivalents         $       70,673    $    1,144,959    $      164,020   $   994,922    $     567,420    $          743 ,273


                   Liabilities
0\
00
     Due to other funds                $                 $                 $                $              $                $          743,273
     Due to other governments                 70,673          1,144,959           164,020
     Escrow liability                                                                           994,922          567,420

         Total Liabilities             $      70,673     $    1,144,959    $      164,020   $   994 ,922   $     567,420   $           743 ,273


                                            CYS                Tax             Domestic       Prison           Sheriffs
                                           Services           Claim            Relations    Commissary          Office              Total
                     Assets

     Cash and cash equivalents        $        13,489    $    1,675,727    $       59,893   $   342,987    $     504,259   $         6,281,622



                   Liabilities

     Due to other funds               $                 $        25 ,257   $                $              $               $           768,530
     Due to other governments                                   212 ,003                                                             1,591 ,655
     Escrow liability                         13,489          1,438,467            59,893       342,987          504,259             3,921 ,437

         Total Liabilities            $       13,489    $     1,675,727    $      59,893    $   342,987    $     504,259   $         6,281 ,622
             COUNTY OF WASHINGTON, PENNSYLVANIA
                              FIDUCIARY FUNDS

                       ALL AGENCY FUNDS
     COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

                              DECEMBER 31 , 2010


                                    Balance at                                        Balance at
                                    January 1,                                       December 3 I,
                                      2010             Additions        Deletions       2010
Treasurer:

               Assets

  Cash and cash equivalents     $       43,133     $      404,131   $      376,591   $        70,6 73

             Liabilities

  Due to other governments      $       43 ,133    $      404,131   $      376,591   $        70,673

Recorder of Deeds:

               Assets

  Cash and cash equivalents     $ 1, 191 ,881      $ 14,272,648     $ 14,319,570     $      1, 144,959

             Liabilities

  Due to other governments       $ 1,191,88 1      $ 14,272,648     $ 14,319,570     $      1,144,959

Register of Wills:

               Assets

  Cash and cash equivalents      $     148,218     $ 13 ,093 ,300   $ 13,077,498     $        164,020

             Liabilities

  Due to other governments       $      148,2 18   $ 13,093 ,3 00   $ 13 ,077,49 8   $        164,020

                                                                                         (Continued)




                                           69
             COUNTY OF WASHINGTON, PENNSYLVANIA
                                          FIDUCIARY FUNDS

                       ALL AGENCY FUNDS
     COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

                                          DECEMBER 31 , 2010
                                                 (Continued)



                                                 Balance at                                     Balance at
                                                 January 1,                                    December 31 ,
                                                   2010         Additions         Deletions       2010
Prothonotary:

                     Assets

  Cash and cash equivalents                  $ 3,329,132       $ 1,604,495    $ 3,938 ,705     $       994,922


                Liabilities

  Escrow liability                           $ 3,329,132       $ 1,604,495    $ 3,938,705      $       994,922


Clerk of Courts:

                     Assets

  Cash and cash equivalents                  $      624,507    $ 3,293,487    $ 3,350,574      $       567,420

                Liabilities

  Escrow liability                           $      624,507    $ 3,293,487    $ 3,350,574      $       567,420


Court Administrator - Supervision Fees:

                     Assets

  Cash and cash equivalents                  $      638,040    $   355 ,233   $      250,000   $       743,273

                Liabilities

  Due to other funds                         $       638,040   $   355,233    $      250,000   $       743 ,273

                                                                                                   (Continued)




                                                       70
             COUNTY OF WASHINGTON, PENNSYLVANIA
                              FIDUCIARY FUNDS

                       ALL AGENCY FUNDS
     COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
                              DECEMBER 31, 2010
                                      (Cantin ued)



                                    Balance at                                              Balance at
                                    January I,                                             December 31,
                                      2010               Additions          Deletions         2010
CYS Services:

                Assets

  Cash and cash equivalents     $       15,706       $         9,997    $        12,214    $       13,489

             Liabilities

  Escrow liability              $        15 ,706     $         9,997    $        12,2 14   $       13,489


Tax Claim:

                Assets

  Cash and cash equivalents     $ 1,724,75 1         $     8,913 ,726   $     8,962,750    $ 1,675,727

             Liabilities

  Due to other funds            $        39,065      $     2,081,828    $     2,095,636    $        25,257
  Due to other governments              231,004            6,905,021          6,924,022            212,003
  Escrow liability                    1,454,683            1,002,025          1,018 ,241         1,438 ,467

                                $ 1,724,752          $     9,988,874    $    10,037,899    $ 1,675,727

Domestic Relations:

                Assets

  Cash and cash equivalents     $        51 ,044     $     1,734,638    $     1,725,789     $       59,893

             Liabilities

  Escrow liability              $        51,044      $     1,734,638    $     1,725,789     $       59,893

                                                                                               (Continued)




                                            71
               COUNTY OF WASHINGTON, PENNSYLVANIA
                              FIDUCIARY FUNDS

                         ALL AGENCY FUNDS
       COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

                              DECEMBER 31,2010
                                       (Continued)




                                   Balance at                                              Balance at
                                   January 1,                                             December 31,
                                     2010                Additions          Deletions         2010
Pdson Commissary:

               Assets

  Cash and cash equivalents    $      310,961        $        356,513   $      324,487    $       342,987

            Lia bilities

  Escrow liability             $      310,961        $        356,513   $       324,487   $       342,987




Sheriffs Office:

               Assets

  Cash and cash equivalents    $      438,277        $      3,082,240   $     3,016,258   $       504,259

            Lia bilities

  Escrow liability             $      438,277        $      3,082,240   $     3,016,258   $       504,259

                                                                                              (Concluded)




                                            72
 County of Washington,
     Pennsylvania
Grant and Program Information
[ THIS PAGE INTENTIONALLY LEFT BLANK ]
   COUNTY OF WASHINGTON, PENNSYLVANIA
                   YEAR ENDED DECEMBER 31,2010

                           TABLE OF CONTENTS


Grant and Program Information:

 Aging Services - Schedule of Expenditures - Budget and Actual
  Program - Funded Contracts                                        73

 PCCD - Services to Victims of Juvenile Offenders - Subgrant No.
  2008 /200912010-VJ/VS-ST-19604 - Schedule of Program
  Revenues and Expenditures - for the Program Year Ended June
  30,2010                                                           74

 PCCD - Victim Services Within the Juvenile Justice System and to
  Underserved Population - Subgrant No. 2009 /2010-VF-05-19976
  Schedule of Program Revenues and Expenditures - for the
  Program Year Ended June 30, 2010                                  75

 PCCD - Offender Day Partial Treatment - Subgrant No. 2009-DA-
  ST-20252 - Schedule of Program Revenues and Expenditures -
  for the Program Year Ended June 30, 2010                          76

 PCCD - Rights and Services for Victims of Crime - Subgrant No.
  2009-VS-ST-19589 - Schedule of Program Revenues and
  Expenditures - for the Program Year Ended December 31 , 2010      77

 PCCD - Fast Track/Intermediate Punishment Program - Subgrant
  No . 2009/2010/2011-IP-ST-20021 - Schedule of Program
  Revenues and Expenditures - for the Program Year Ended June
  30, 2010                                                          78

 PCCD - Furlough into Service Program Expansion - Subgrant No.
  2005-JG-04-18965 - Schedule of Program Revenues and
  Expenditures - for the Program Year Ended June 30, 2010           79

 PCCD - Byrne Justice Assistance Grant Program - Subgrant No.
  200812010-JG/MH-04/ST-19601-2 - Schedule of Program
  Revenues and Expenditures - for the Program Year Ended
  September 30,2010                                                 80

 PCCD - Criminal Justice Advisory Boards Establishment Project -
  Washington County Vid - Subgrant No . 2006-JG-05-18050-3-
  Schedule of Program Revenues and Expenditures - for the
  Program Year Ended June 30, 2010                                   81

 DPW - Health Center Fund - Grant No . 4100046834 - Schedule of
  Revenues and Expenditures - for the Program Year Ended June
  30,2010                                                            82
    COUNTY OF WASHINGTON, PENNSYLVANIA
                     YEAR ENDED DECEMBER 31,2010

                             TABLE OF CONTENTS
                                      (Continued)

Schedule of Expenditures of Federal Awards and
 Schedule of Department of Public Welfare Financial
 Assistance:

 Schedule of Expenditures of Federal Awards                      83

 Notes to Schedule of Expenditures of Federal Awards             85

 Schedule of Department of Public Welfare Financial Assistance   86
            COUNTY OF WASHINGTON, PENNSYLVANIA
                               AGING SERVICES

              SCHEDULE OF EXPENDITURES - BUDGET AND ACTUAL
                      PROGRAM - FUNDED CONTRACTS

                             YEAR ENDED JUNE 30, 2010



                                                                              Vari ance -
                                                                              Favorable
                                             Budget            Actual       (Unfavorable)
Personal Services:
 Salaries                              $       839,947     $     831,132    $       8,815
 Fringe benefits                               374,252           380,986           (6,734)

   Total personal services                    1,214,199        1,212,118            2,081

Operating:
 Occupancy                                     103,021            89,914           13 ,107
 Communications                                 35,000            36,285           (1 ,285)
 Supplies                                       85,670            97,349          (11,679)
 Transportation                                 44,700            48,729           (4,029)
 Contracted services                             5,500             5,500
 Other                                           3,500             1,741            1,759

   Total operating                             277,391           279,518           (2,127)

     Total Expenditures                $      1,491 ,590   $    1,491,636   $         (46)




                                        73
            COUNTY OF WASHINGTON, PENNSYLVANIA
         PENNSYL VANIA COMMISSION ON CRIME AND DELINQUENCY-
              SERVICES TO VICTIMS OF JUVENILE OFFENDERS
               SUBGRANT NO. 2008/2009/20 10- VJ/VS-ST -19604

            SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES

                        FOR THE PROGRAM YEAR ENDED JUNE 30, 2010



                                                                                Variance -
                                                                                Favorable
                                                  Budget          Actual      (Unfavorable)
Revenues:
 State                                        $      97,786   $      62,544   $    (35 ,242)

Expenditures:
 Personnel                                           66,132          45,770         20,362
 Employee benefits                                   16,758          14,119          2,639
 Travel                                               4,450             415          4,035
 Supplies and other operating expenditures            6,252           2,240          4,012
 Other                                                4,194                          4,194

   Total expenditures                                97,786          62,544         35,242

Excess of Reven ues Over Expenditures         $               $               $




                                             74
            COUNTY OF WASHINGTON, PENNSYLVANIA
        PENNSYL VANIA COMMISSION ON CRIME AND DELINQUENCY-
      VICTIM SERVICES WITHIN THE JUVENILE JUSTICE SYSTEM AND TO
                      UNDERSERVED POPULATION
                   SUBGRANT NO. 2009/2010-VF-05- 19976

            SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES

                        FOR THE PROGRAM YEAR ENDED JUNE 30, 2010



                                                                                Variance -
                                                                                Favorable
                                                  Budget          Actual      (Unfavorable)
Reven ues:
 Federal                                      $     113,936   $      56,968   $    (56,968)
 In-kind match                                       48,672          36,281        (12,391)

   Total revenues                                   162,608          93,249        (69,359)

Expend itu res :
 Personnel                                          126,612          68,536         58,076
 Employee benefits                                   13,870          15,370         (1,500)
 Travel                                                                 578           (578)
 Supplies and other operating expenditures            2,066           1,275            791
 Consultants                                         20,060           7,490         12,570

   Total expenditures                               162,608          93,249         69,359

Excess of Revenues Over Expenditures          $               $               $




                                             75
            COUNTY OF WASHINGTON, PENNSYLVANIA
         PENNSYL VANIA COMMISSION ON CRIME AND DELINQUENCY-
                   OFFENDER DAY PARTIAL TREATMENT
                     SUBGRANT NO. 2009-DA-ST-202S2

            SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES

                         FOR THE PROGRAM YEAR ENDED JUNE 30, 2010



                                                                                  Variance -
                                                                                  Favorable
                                                   Budget           Actual      (Unfavorable)
Revenues:
 State                                         $     338,131    $     330,011   $     (8 ,120)

Expenditures:
 Personnel                                             5,924            6,017            (93)
 Travel                                                3,283                           3,283
 Supplies and other operating expend itures           17,319           12,445          4,874
 Consultants                                         311,605          311,549             56

    Total expenditures                               338,13 1         330,011           8,120

Excess of Revenues Over Expenditures           $                $               $




                                              76
            COUNTY OF WASHINGTON, PENNSYLVANIA
          PENNSYLVANIA COMMISSION ON CRIME AND DELINQUENCY-
                RIGHTS AND SERVICES FOR VICTIMS TO CRIME
                      SUBGRANT NO. 2009-VS-ST-19589

            SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES

                    FOR THE PROGRAM YEAR ENDED DECEMBER 31, 2010


                                                                                  Variance -
                                                                                  Favorable
                                                  Budget          Actual        (Unfavorable)
Revenues:
 State                                        $     213,800   $     190,397     _---'--_3'"- 03 )
                                                                               _$     (2 ,4_ -'-

Expenditures:
 Personnel                                          133,408         123,373             10,035
 Employee benefits                                   48,426          47,709                717
 Travel                                               6,178           2,53 1             3,647
 Supplies and other operating expenditures           16,940          16,533                407
 Other                                                8,848             25 1             8,597

   Total expenditures                               213,800         190,397             23,403

Excess of Revenues Over Expenditures          $               $                 $




                                             77
           COUNTY OF WASHINGTON, PENNSYLVANIA
        PENNSYLVANIA COMMISSION ON CRIME AND DELINQUENCY-
           FAST TRACK/INTERMEDIATE PUNISHMENT PROGRAM
                SUBGRANT NO. 2009/20 10/2011- IP-ST -20021

           SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES

                     FOR THE PROGRAM YEAR ENDED JUNE 30, 20 10


                                                                             Variance -
                                                                             Favorable
                                              Budget          Actual       (Unfavorable)
Reven ues:
 State                                    $     123,810   $      36,773    $    (87,037)
 New appropriation                              163,722          78,145         (85,577)

   Total revenues                               287,532         114,918        (172,614)

Expenditures:
 Personnel                                      287,532         114,9 18        172,6 14

Excess of Revenues Over Expenditures      $               $                $
                                                                           =====




                                         78
            COUNTY OF WASHINGTON, PENNSYLVANIA
         PENNSYLVANIA COMMISSION ON CRIME AND DELINQUENCY-
              FURLOUGH INTO SERVICE PROGRAM EXPANSION
                    SUBGRANT NO . 2005-JG-04-18965

            SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES

                        FOR THE PROGRAM YEAR ENDED JUNE 30, 20 10



                                                                                Variance -
                                                                                Favorable
                                                  Budget          Actual      (Unfavorable)
Revenues:
 Federal                                      $      46,085   $      44,811   $     (1,274)
 New appropriation                                   15,362          14,937           (425)

   Total revenues                                    61,447          59,748          (1,699)

Expenditures:
 Personnel                                           38,000          36,367           1,633
 Employee benefits                                    9,262          10,481          (1,219)
 Travel                                               1,000           1,163            (163)
 Equipment                                            5,685           5,895            (210)
 Supplies and other operating expenditures            4,500           4,403              97
 Other                                                3,000           1,439           1,561

   Total expenditures                                61,447          59,748           1,699

Excess of Revenues Over Expenditures          $               $               $      (3,398)




                                             79
          COUNTY OF WASHINGTON, PENNSYLVANIA
        PENNSYLVANIA COMMISSION ON CRIME AND DELINQUENCY-
             BYRNE JUSTICE ASSISTANCE GRANT PROGRAM
              SUB GRANT NO. 2008/201 0-JG/MH-04/ST-19601-2

           SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES

                     FOR THE PROGRAM YEAR ENDED SEPTEMBER 30, 2010


                                                                               Variance -
                                                                               Favorable
                                                Budget          Actual       (Unfavorable)
Reven ues:
 Federal                                    $      31,171   $      31,171    $
 State                                             93,515          93 ,515
 In-kind match                                     18,577          78,277          59,700

   Total revenues                                 143,263         202,963          59,700

Expenditures:
 Personnel                                        111,000         165,952          (54,952)
 Employee benefits                                 32,263          37,011           (4,748)

   Total expenditures                             143,263         202,963          (59,700)

Excess of Revenues Over Expenditures        $               $                $




                                           80
            COUNTY OF WASHINGTON, PENNSYLVANIA
          PENNSYLVANIA COMMISSION ON CRIME AND DELINQUENCY-
          CJAB ESTABLISHMENT PROJECT - WASHINGTON COUNTY VID
                      SUBGRANT NO. 2006-JG-05-18050-3

             SCHEDULE OF PROGRAM REVENUES AND EXPENDITURES

                        FOR THE PROGRAM YEAR ENDED JUNE 30, 2010


                                                                                        Variance -
                                                                                        Favorable
                                                          Budget          Actual      (Unfavorab le)
Reven ues:
 Federal                                         $            5,773   $       3,931   $      (1,842)
 New appropriation                                           17,318          11,793          (5,525)

    Total revenues                                           23,091          15,724          (7,367)

Expenditures:
 Supplies and other operating expenditures                   23,091          15,724           7,367
                                             -        -     -'---

Excess of Revenues Over Expenditures              $                   $               $
                                                                                      =====




                                             81
      COUNTY OF WASHINGTON, PENNSYLVANIA
                          DPW - HEALTH CENTER FUND
                            GRANT NO. 4100046834

              SCHEDULE OF REVENUES AND EXPENDITURES

                     FOR THE PROGRAM YEAR ENDED JUNE 30, 2010


                                                      Budget           Actual
Revenues:
 Pennsylvania Department of Public Welfare        $    1,200,000   $     102,461

Expenditures:
 Subgrant services                                     1,182,634         102,461
 Equipment                                                17,366

  Total expenditures                                   1,200,000         102,461

Excess of Revenues Over Expenditures              $                $




                                             82
      County of Washington,
          Pennsylvania
Schedule of Expenditures of Federal Awards
      and Schedule of Department of
    Public Welfare Financial Assistance
       Year Ended December 31,2010
                                                                COUNTY OF WASHINGTON, PENNSYLVANIA
                                                                     SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
                                                                                       YEAR ENDED DECEMBER 3 1, 2010
                                                                                                                                    Pass-Through
                                                                                                      Federal CFDA                    Grantor's                   Pa)nlents
Feder:!1 GrnnlOr/Pro£!<lm Title                                                                          Number                       Number                      Received            Expenditures

U.S. Department ofHeahh and Hum;!n Sen'ices
  Passed Through the Pennsylvania Department of Public Welfare :
     Temporary Assistance for Needy Fami lies                                                            93.558                                                        825 ,826              828 , 139
     Temporary Assistance for Needy Families - Maximum Participntion Project                             93.558                                                         33 ,772               67 ,544
     Temporary Assistance for Need)' Families - CCiS Day Care                                            93 .558                    DC08-639992                         64 .855               65 ,375

         Subtotal 93.558                                                                                                                                               924.453               96 1.058
    Child Support Enforcement                                                                            93 .563                  ME 3332114063                       1,288 ,690           1,263 ,954
    ARRA Child Support Enforcement                                                                       93 .563                                                        2 15. 119            215 , 119
    Child Support Enforcement· Incentive on Welfare Collections                                          93 .563          001 -02 [- 684 -6- [ 140· 2021 1-6 32                              255.499
         Subtola193.563                                                                                                                                               [.503.809            1.734.572
    Ch ild Welfare Services - Stale Grants - Title IV (8)" Children and Youth                            93 .645                                                         49,648                49,648
    Fosler Care - Title IV-E - Children and Youth                                                        93.658                                                      2,792,706             2,393 , 117
    ARM Fosler Care · Tille lV-E - Chi ldren and Youth                                                   93 .658                                                       119.870                91.057
        Subtotal 93.658                                                                                                                                               2.912.576            2.4 84.174

    Adoption Assistance                                                                                  93.659                                                       1,463 ,832           1, 178 ,9 30
    ARRA Adoption Assistance                                                                             93.659                                                         142.949               I 22J130
        Subtotal 93.659                                                                                                                                               1,606.n l            1.30 1.760
    Social Scrvices   Block   Grant -   Title XX - Children and Youth                                    93.667                                                         159,387              I (j6 ,755
    Social Services   Block   Grant-    Mcdicaid - Children and Youth                                    93 .667                                                          7,368                  7,368
    Social Services   Block   Grant -   Mental Health/ Ment:ll Retard:ltiOIl                             93.667                                                         155, 117             155 . 116
    Social Services   Block   Grant -   CCiS Day Care                                                    93.667         ME 9992-1 1670 and ME 9992-0 1670               584.167              582.654

        Sublottll 93 .667                                                                                                                                               906.039              91 1.893
    Child Care and Development Block Grant                                                               93.575                     DC OR-639992                      1,264 ,237            1,304,544
    Child Ctlre Mand:ltoT)' tlnd M:Jtching Funds of the Child
     Care :lnd Development Fund                                                                          93 .596                    DC08-639992                       1,88 1,573            l ,g8 1,573
    ARRA - Chi ld Care and Development Block Gr.mt                                                       93 .7 13                                                       364.9 13               364 ,9 13

        Subtotal CCDF C luster                                                                                                                                        3.5 10,723           3,55 1,030
    Chafee Foster Care Independence Program                                                              93 .674                                                         94.076               102,475
    Medical Assistance Transportation Program                                                            93 .778                   ME 6300229863                      2,019 ,62 1           1,427 ,49 1
    Medical Assistance Program - Mental Health/ Mental Retardation                                       93.77'11                                                     1,87 1, 183             260,6 10
    ARRA Medical Assistance Transport:ltion Program                                                      93 .778                   ME 6300229863                         80.205               213.303
        Subtotal 93.778                                                                                                                                               3,97 1.009            1.901.404

    Block Grants for Community Menl:l l Health Sen'ices                                                  93.958                                                         567,267               573 ,073

    Nation<ll Bioterrorism Hospit:ll Preparedness Program                                                93.889                                                               1,355

  Passed Through the Pennsylvania Department of State:
    Voting Access for Indi viduals with Dis:lbi li ties                                                  93 .6 17                                                          7.608                 9. 130

        Total U.S . Department of Health and Human Sen'ices                                                                                                          16,053,989            13.580.217
U.S Department of Housing and Urban Deve[opment

  Emergency Shelter Gr:lnts Program                                                                      14.23 1          S I 0-UC-4200 I I/S08 -UC-42001 I
                                                                                                                                   S09-UC-4200 II                                             253 ,483
  Community Development Block GnllltslEntillemenl Gmnts - HUD - Prescription Assist.                     14.218                         CD09 -33                                                12,485
  Supportive Housing Program - HUD SNAPS XIV                                                             14 .235                                                                              543 ,520
                                                                                                                       PA0277B3E010802, PA0282B3EO I0802
                                                                                                                       PA0300B3E010802 , PA0294B3EO I 0802
                                                                                                                       PA0295B3E010802, PA0302B3EO 10802
  Supportive Housing Program - HUD SNAPS XV                                                              14.235                 PA029 I B3EO I 0802                                           640,299
  Supportive Housing Progr:lm - HUD SNA PS XIII                                                          14.235            PA28B701007, PA28B701013
                                                                                                                           PA28B70 1003 , PA 28B70 10 10
                                                                                                                           PA28B701021 , PA28B701017
                                                                                                                           PA 28 B701002, PA28B701030                                           12. 103
        Subtotal 14.235                                                                                                                                                                     1.195.922
  Shelter Plus Care - HUD SNAPS V tl (S+C II)                                                            14.238                      PA28CI05001                                                13.899
  Passed Through Pennsylvania Department of Community and
    Economic Development:
      ARRA Homelessness Prevention and Rapid
        Re-Housing Program (Recovery Act Funded)                                                          14 .257                     C000046183                          57,047                59,050
  ARRA Homelessness Prevention and Rapid
    Re-Housin£ Program (Recovery Act Funded)                                                              14.257                   S-09-UY-42-00 I I                                          726 1 180
        Subtotal 14.257                                                                                                                                                                       785.230
        Total U.S. Department of Housi ng and Urban Development                                                                                                                             2.261.019

U.S. Department of Agriculture
  Passed Through the Pennsylvania Department of Public We lfare:
     State Admin istrative Matching Grants for the Supp lemental
       Nutrition Assistance Program                                                                       10.56 1                    DC-08-639992                                               59,678
  Passed Through Pennsylvania Department of Agriculture :
    Emergency food Assistance Program (Admini strative Costs)                                             10.568                    ME 4100036582                                               40,456
    ARRA Temporary Emergency Food Assistance Program (Adm inistrative Costs)                              10.568                    ME 446649-0 I                                                3352

        Subtotal 10.568                                                                                                                                                                         43.808
    Emergency Food Assistance Program (Food Commodities )                                                 10.569                      8-04·63- 13 1                                            386.893
        Total Emergency Food Assistance Program Cluster                                                                                                                                       430.10 1
        Total U.S . Department of Agriculture                                                                                                                                                  490379

                                                                                                                                                                                        (Continued)




                                                                               See notes to schedule of expenditures of federal awards.

                                                                                                          83
                                                    COUNTY OF WASHINGTON, PENNSYLVANIA
                                                        SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
                                                                            YEAR ENDED DECEMBER 31, 2010
                                                                                           (Continued)

                                                                                                                        Pass-Through
                                                                                           Federal CFDA                   Grantor's                    Payments
Federal GrantorlProgram Title (cont inued)                                                    Number                      Number                       Received   Expenditures

U.S. Department of Transportatio n
  Passed Through the Pennsylvania
    Department of Transportation :
       Highway Planning and Construction                                                      20.205                                                                      70,325
           Total U.S. Department of Transportation                                                                                                                        70,325

U.S. Department of the Interior
  Historic Preservation Fund Grants·in-Aid                                                    15.904                   42-07-PA-3070                                     108,345
           Total U.S . Department of Interi o r                                                                                                                          108,345

U.S. Department of Ju sti ce
  Passed Through the Pennsylvania Commission
     on Crime and Delinquency:
       Crime Victim Assistance                                                                16.575        2006- VF-05-17804 /20 I 0-VF-05-19976                         54,045
       Byrne Formula Grant Program                                                            16.579       2005-JG-04-189651 2005-JG-05 -1 8050-2                         32,499
       Victims   of juvenile Offenders                                                        16.738                  2008-DJ-BX-0024                                     20,589
       Edward    Byrne Memorial Ju stice    Assistance Grant    Program                       16 .738      2005 -JG-05-1 S050-2 /2006- JG-05-1 8050-                        1,729
       Edward    Byrne Memorial Ju st ice   Assistance Grant    Program                       16.738                                                                      3 I, 171
       Edward    Byrne Memorial Ju stice    Assista nce Grant   Program                       16.738                  2009-DJ-BX-0619                                     17,222
       Edward    Byrne Memorial Ju stice    Assistance Grant    Program                       16.738                  201O-DJ-BX-0861                                     61, 111
         Subtotal 16.738                                                                                                                                                 131 ,8 22
  ARRA Edward Byrne Memorial Justice Assistance Gran t
   Program/Grants to Units of Loca l Government
   (Recovery Act Funded)                                                                      16.804                  2009-0 1-BX-0082                                    47,494
           Total JAG Program Cluster                                                                                                                                     179,3 16

          Total U.S . Department of Justice                                                                                                                              265,860
U.S . Department of Homeland Securi ty
  Passed Through the Pennsylvania Emergency
     Management Agency (PEMA) :
       Emergency Management Performance Grants                                                97.042                                                                     125,635
          Total U .S. Department of Homeland Security                                                                                                                    125,635
U.S . Departmen t of Energy
  ARRA Energy Efficiency and Conservation Block Grant                                         81.128                   DE-SCOOO 1396                                     220,357
          Total U.S . Dep art ment of Energy                                                                                                                             220,357
U. S Depart ment of Education
   Passed Through the Pennsylvania Department
     of Public Welfare:
       Special Education - Grants for Infants and Families                                    84.18 1                                                                    1JJ,285
       ARR.A Special Educati on - Grants for Infants and Families                             84.393                                                                      4 1,245
          Subtotal Early Intervention ( IDE A) Cluster                                                                                                                    174,5 30
U S. General Services Administrat ion
  P assed through Pennsylvania Department of State:
       Election refor m payments                                                              39.0 11              4100033683 /4 100033685                                 50,972
  Passed Through the PEMA:
       Donation of Federal Surplus Personal Property                                          39.003                                                                      190,553

          Total U .S. General Services Administrat ion                                                                                                                   24 1,525
U.S. Department of Transportation Federal Aviation Administration
  Passed Through the Pennsylvania Department
     of Transportation:
       Airport Improvement Program                                                            20.106                                                                       20,302
          Total U.S . Department of Transportation. Federal Aviat ion Admini st ration                                                                                     20,302
U.S. ELECTION ASSISTANCE COMMISSION
  Passed through Pennsylvania Department of State:
      Help America Vote Act Requirements Payments                                             90.40 1                    41 00033686                                      130,239

Total Federal Financial Assistance per the County of Washington's
  primary government financial statements                                                                                                                              17,688,733
U .S. Department of Housing and Urban D evelopment
   Direct federal payments to a subrecipienl (See Note I) :
     Community Development Block Grant Program
       Entitlemen t Grants                                                                     14.218                                                                   3,860,721
     ARRA - Community Development Block Grant Program
       Entitlement Grants                                                                      14 .253                      428155                                        555,968
     HOME Investment Partnerships Program                                                      14.239                                                                     717 ,008

          Total U.S. Department of Housing and U rban Development                                                                                                       5, 133,697

            Total Federal Financial Assistance                                                                                                                         22,822,430

                                                                                                                                                                   (Concluded)




                                                                    See notes to schedule of expenditures of federa l awards.

                                                                                                84
           COUNTY OF WASHINGTON, PENNSYLVANIA
       NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

                                 YEAR ENDED DECEMBER 31, 2010


  (1) The County of Washington, Pennsylvania (County) is a contractual recipient of federal financial
      awards under agreements with the U.S. Department of Housing and Urban Development (HUD). The
      County has authorized HUD to transmit funds under these agreements directly to the Washington
      County Redevelopment Authority (RDA), which is the representative agency with program oversight
      responsibility. This infonnation is included in the County's schedule of expenditures of federal
      awards for informational purposes, although it has been excluded from the County' s primary
      government financial statements (see Note 1 to the County's primary government financial
      statements). The RDA has submitted, for their fiscal year ending June 30, 2010, a Single Audit
      Report to the County covering $2,573,453 of the expenditures shown on the previous pages . The
      remaining $2,560,243 of expenditures, representing the period July 1,2010 through December 31,
      2010, will be covered in the RDA's Single Audit Report of June 30, 2011.

      During the year ended December 31, 2010, the County received $884,464 passed through the
      Pennsylvania Department of Community and Economic Development (DCED) under CFDA 14.228.
      These funds are passed onto the RDA after receipt. The County has not presented this amount on the
      schedule of expenditures of federal awards as they have no authority over how the funds are spent,
      nor do they have any reporting or oversight responsibility for the federal funds.

  (2) This schedule is prepared in accordance with the modified accrual basis of accounting.

  (3) By program, the following amounts were passed-through to subrecipients:

                          Program                                           CFDA               $ Passed-through
E~rgency    Shelter Grants Program                                          14.231             $       217,928
Shelter Plus Care - HUD SNAPS VII (S+C IT)                                  14.238                       13,899
Supportive Housing Program - HUD SNAPS XV and XIII                          14.235                      638,603
Temporary Assistance for Needy Families                                    93.558                       828,139
ARRA - Temporary Emergency Food Assistance Program                          10.568                        3,352
Temporary E~rgency Food Assistance Program - Administrative                 10.568                       40,456
E~rgency Food Assistance Program (Food Commodities)                         10.569                       15,461
Foster Care - Title IV-E / Adoption Assistance                          93.658/93.659                 3,796,904
Medical Assistance Pro gram                                                93.778                     1,610,299
CDBG/Entitle~nt Grants - HUD                                                14.218                       12,485
E~rgency Shelter Grants Program - HUD SNAPS XIV                             14.231                      528,716
ARRA - HUD HPRP                                                             14.257                      712,863
ARRA - DCED - HPRP                                                          14.257                       59,050

  (4) Cash receipts are shown on the schedule on the cash basis of accounting as required by the
      Pennsylvania Department of Public Welfare and the Department of Community and Economic
      Development.



                                                     85
    COUNTY OF WASHINGTON, PENNSYLVANIA
          SCHEDULE OF DEPARTMENT OF PUBLIC WELFARE
                    FINANCIAL ASSISTANCE

                                   DECEMBER 31,2010


                                                              Combined F ederall
                            Program                           State Expenditures

Child Support Enforcement Program                             $        1,734,572   *
County Chi ldren and Youth Programs                                   15,061,267   *
Medical Assistance Transportation Program                              3,421,800
Human Services Development Fund                                          349,598
County Chi ld Care Information Services
 for Subsidized Child Day Care                                         7,862,173   *
Mental Heal thiMental Retardation                                     11,219,177   *
Health Center - Rehabi litation Wing                                     711,148
Combined Homeless Assistance Programs:
  Social Services Blod< Grant - Emergency Shelter Program                145,390
 Bridge Housing Program                                                   26,000
 Housing Assistance Program                                               73,105
 Case Management Program for the Homeless                                 50,000

                                                              $       40,654,230



* Denotes major programs for DPW testing purpose. The 2010 dollar threshold used to
 distinguish between type A and type B was $530,662. The amount expended under
 major DPW programs for the year ended December 31,2010 is $35,877,189.




                                               86
[ THIS PAGE INTENTIONALLY LEFT BLANK ]
  County of Washington,
      Pennsylvania
DPW - Funded Financial Assistance
       Program Exhibits
                                         Pittsburgh                 Harrisburg                  Butler
                                         Three Gateway Center       3003 North Front Street     112 Ho ll ywood Drive
                                         Six West                   Suite 101                   Suit e 204
                                         Pittsburgh, PA 15222
MaherDuessel                             Main 412 .471.5500
                                                                    Harrisburg, PA 17110
                                                                    Main 717.232.1230
                                                                                                Butler, PA 16001
                                                                                                Main 724.285.6800
Certified Public Accountants             Fax    412 .471 .5508      Fax    717 .232.8230        Fax     724.285.6875




   Independent Accountant's Report on "Agreed-Upon Procedures" for Department of Public Welfare
                  Funded Financial Assistance Programs, Schedules, and Exhibits

Board of County Commissioners
County Controller
County of Washington, Pennsylvania

We have performed the procedures enumerated below, which were agreed to by the Commonwealth of
Pennsylvania Department of Public Welfare (DPW), and the County of Washington solely to assist you
with respect to the financial schedules and exhibits required by the DPW Single Audit Supplement. The
County of Washington's management is responsible for the financial schedules and exhibits. This
engagement to apply agreed-upon procedures was performed in accordance with standards established by
the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the
responsibility of the DPW. Consequently, we make no representation regarding the sufficiency of the
procedures described below, either for the purpose for which this report has been requested, or for any
other purpose.

The procedures and associated findings are as follows:

a. We have verified by comparison of the amounts and classifications that the supplemental financial
   schedules and exhibits listed below, which summarize amounts reported to DPW for fiscal year ended
   June 30, 2010, have been accurately compiled and reflect the audited books and records of the County
   of Washington. We have also verified by comparison to the example schedules and exhibits that
   these schedules are presented, at a minimum, at the level of detail and in the format required by the
   DPW Single Audit Supplement pertaining to this period.

                                                Exhibit
        Program Name                            Number            Referenced ScheduleslExhibits

    Title IV-D Child Support                      A-I (a)         Comparison of Single Audit Expenditures
                                                                   and Reported Expenditures
                                                  A-I (b)         Child Support Enforcement - PACSES
                                                                   OCSE 157 Data Reliability Validation

    Medical Assistance Transportation                 III         Schedule of Revenues and Expenditures

    MHJMR                                      IV (a) MH          Schedule of Revenues, Expenditures,
                                                                   and Carryover Funds
                                               IV (b) MH          Report of Income and Expenditures
                                                                   Single Audit Supplement
                                               IV (c) MR          Schedule of Revenues, Expenditures,
                                                                   and Carryover Funds
                                                                   Single Audit Supplement
                                               IV (d) MR          Report of Income and Expenditures
                                                                   Single Audit Supplement
                                                  IV (e)          Cost Settlement Report (CSR)


                                                            Pursuing the profession while promoting the public good"
                                                                                                www.md-cpas.com


                                                       87
Board of County Commissioners
County Controller
County of Washington, Pennsylvania
Independent Accountant's Report on "Agreed-Upon Procedures"

                                                V (a) EI        Schedule of Revenues, Expenditures,
                                                                 and Carryover Funds
                                                                 Single Audit Supplement
                                                V (b) EI        Report of Income and Expenditures
                                                                 Single Audit Supplement

    Human Services Development Fund                 x           Schedule of Revenues and Expenditures

    CCIS Daycare                                 VIII (b)       Schedule of Child Care Information
                                                                  Services Recap for Fiscal Year 2010
                                                 XVIII (a)      Schedule of Revenues and Expenditures -
                                                                  Administrative Budget - Fund A
                                                 XVIII (b)      Schedule of Revenues and Expenditures-
                                                                  Administrative Budget - Fund C
                                                 XVIII (c)      Schedule of Revenues and Expenditures -
                                                                  Administrative Budget - TANF
                                                 XVIII (d)      Y ear-to-Date Administrative Expenditures
                                                                  Fund A (screenshot)
                                                 XVIII (e)      Y ear-to-Date Administrative Expenditures
                                                                  Fund C (screenshot)
                                                 XVIII (t)      Year-to-Date Administrative Expenditures
                                                                  TANF (screens hot)
                                                  XVIII (g)     Year-to-Date Administration/Family
                                                                  Support Services Budget Summary
                                                                  (screenshot)
                                                  XVIII (h)     Recap Report Summary (CCMIS)
                                                                  (screenshot)

    Combined Homeless Assistance Programs           XIX         Revenues and Expenses

 b. We have inquired of management regarding adjustments to reported revenues or expenditures, which
    were not reflected on the reports, submitted to DPW for the period in question.

 c. The processes detailed in paragraphs (a) and (b) above disclosed no adjustments and/or findings.

We were not engaged to, and did not, perform an examination, the objective of which would be the
expression of an opinion on the specified elements, accounts or items. Accordingly, we do not express
such an opinion. Had we performed additional procedures, other matters might have come to our
attention that would have been reported to you.

                                             ***** *****
This report is intended solely for the use of the Department of Public Welfare and should not be used by
those who have not agreed to the procedures, and taken responsibility for the sufficiency of the
procedures for their purposes. However, this report is a matter of public record and its distribution is not
limited.


Pittsburgh, Pennsylvania
July 27,2011



                                                     88
                                                                                                           COUNTY OF WASHINGTON, PENNSYLVANIA
                                                                                                            TITLE IV - D CHILD SUPPORT PROGRAM
                                                                                        COMPARI SON OF SINGLE AUDIT EXPENDITURES WITH THE REPORTED EXPENDITURES
                                                                                                          FOR THE FISCAL YEAR ENDED JUNE 30, 2010
                                                                                                                                                        Exh ibit A-I (a )


                                                                            S inJ.:le Audit Expenditures                                                                                   R"pOr1 EX llcnd itures                                                                          Single A udi t Ove r (Und e r~ Repor1ed


                                                                                   C. Ince nth'c Paid                                                                     B.                    C. Incentive                                                                                               C. Ince ntive
     QU:lrtcr Endi ng: 9/30/09            A. Tot:l.l      B. Unallow:lhl c               Co~ts              Net (A-B-q         AmtPa id            A. Tot al        Una llowable                Pa id Costs          Net (A -8 -C)         AmtP aid            A. T ob l           B. Una llow:l.blc       Paid Costs         Net (A-B-C)   Ami P aid
     1. Saiarv & Overhead             S      606.394     S         25. 148                                 1    58 1.246   1    383.6 22       $     606.394       $       25. 148                                  ~                  S     383.622          1            .   $                                             S
    2 Fees & Costs                                                                                                                                                                                                                                                                                                                          _$_-     -
                                                                                                                                                                                                                                                          -       -    -
    3. [nlcrest & Pro,gram Income
    4. Blood Testing Fees
                                              32,069
                                               1.993
                                                                        1.342                                    30.727             20.280             32.069                     1. 342                            ------w:m-                  20.280
                                                                                                                                                                                                                                                          ---                                                               - - - -
    5 Blood Testing Costs
                                                                                                                  1.993              1.3 1S             1.993                                                       -------r:993                 1.3 15
                                                                                                                                                                                                                                                          - --
                                               5.445                                                              5.445              3.594              5.445                                                                5.445               3.594
    6. ADP

     Net Total ( 1-2-3-4+5+6)                577.777                   23.806                                   553 .971   S       365 ,621    S      577,777                 23.806
                                                                                                                                                                                                                    ~                          365.621        $
                                                                                                                                                                                                                                                                                                                                             _'
                                                                                                                                                                                                                                                                                                                                            _1 _ -


                                                                                   C. Ince ntive Paid                                                                        B.                 C. lnccntivc                                                                                              C. {" ccoli,'c
    Qu:u1cr Ending: 12/31109              A. Tol .. 1        B. Una llow:tblc            Costs              Net ( A-B-C)       Am i P:l.id         A . Tot:!.!         UDl"ll lowable            P:l.id C osts       Net (A-B-C)           A m i Paid          A . Tota l          B. Un:dlowablc         Paid Cosb          Net (A-B-C)    Ami P:l id
    1 Salary & Overhead               S     67 1.525     S            27,72 1                              $    643.804    $      424.9 11     $     67 1.525      $            27.721                               $     643.804     $      424 .911        $                $                                             $              $
    2. Fees & Costs
    3. lnlerest & Pro,gram Income             38 .5 18                  1.6 13                                   36.905             24.3 57            38.5 18                    1.613                             ~                           24,357
    4. Blood Tcslin,g Fees                     2.011                                                              2,0 11             1.327              2.0 11                                                         2
                                                                                                                                                                                                                    - --.0-11-                   1.327                                                                      - ---
    5, Blood Test ill~ Costs                   4,873                                                              4,873              3.2 16             4,873                                                                4,873               3.216                                                                      - -- -
    6. ADP                                                                                                                                                                                                                                                - - -
                                                                                                                                                                                                                    - -- -                                                                                                  - - --
     Nel Total ( 1-2-3-4+5+6)               635,869                   26. 108                                  609,76 1           402.443            63 5,869                 26, 108                                $     609.76 1           402.443     _$
                                                                                                                                                                                                                                                           _--                                                                               _--
                                                                                                                                                                                                                                                                                                                                            _$



                                                                                  C. Ince ntive P aid                                                                        B.                 C. I nccnth'c                                                                                             C. Incen tive
    Q UOi rler Endi ng: 3/31/10        A. Total            8 . Un aJlow,.bJc            Costs               NCI(A-B-C)      Amt P aid           A. Tota l           Un;l llow;l.blc             Paid Costs           Net   (A~ B ~C)     A mtP:l id            A. T ol:l l         B. Un a llow:lhle       P'liti Cost...    Net (A~B-C)    A mi Pa id
    I.   Satan' & Overhead            1 6 12, 111        $           24.944                                $   587. 167    S 387.530           $ 612 . 11 1        $        24.944                                   S 587. 167        $    ]87.530           $                $
                                                                                                                                                                                                                                                                                                                            - $ - -- -      S
    2.   Fees & Costs
                                                                                                                                                                                                                                                          ---
    ].   Interest & Pro,gram Income          30,720                     1.266                                   29.454              19,440            30,720                      1.266                             ~          19.440
    4.   Blood Test in~ Fees                  4,075                                                              4.075               2.690             4.075                                                        ~ ~
~   5.   Blood Testi n~ Costs                  1.792                                                             1. 792              1. 18]            1.792                                                         1.792 ______. 83
                                                                                                                                                                                                                                1 1_
    6.   ADP

                                                                                                                                                                                                                                                           _
                                                                                                                                                                                                                                                          _1 _ _                                                                              _
                                                                                                                                                                                                                                                                                                                                            _ $ __
    Net Total (1 -2-3 -4+5+6)               579,108                   2],678                                   555.430            ]66.583            579.108                 2].678
                                                                                                                                                                                                                    ~                         366.583



                                                                                  C. Ince ntive P:l id                                                                   B.                     C. Incentive                                                                                              C. Incentive
    Q UOIrtcr E ndi ng: 6/30110           A. Total           B. Unltllow:lhle           Costs               Net (A-B-C)        A mt Paid           A. Total        Una llowlt b ie              P aid Costs         Net (A-B-C)            AmI Pa id       A, Tota l               B. Unallowable         P:l id Costs       NCI (A -B-C)   A mi Paid
    1.   Salary & o.'crhc.ad          S     655 ,102     1            26.024                               $    629,078    $      41 5. 19 1   $     655 .1 02     1      26.024                                    $ 629.078          $     415 . 191    $        .           $                                             S              $
    2.   Fees & Costs
    ].   Interest & Pro,gram Income          55,44 1                   2.214                                    53.227             35 .1 ]0           55.44 1                  2.214                                ~~
    4    Blood Tcst in,g Fees                 2.747                                                              2,747              1. 8 13            2.747                                                        --z.:747                    1.81 3
                                                                                                                                                                                                                                                          - --                                                              ----
    5.   Blood Testing Costs                  4.288                                                              4.288              2,830              4.288                                                                4.288               2.830
                                                                                                                                                                                                                                                                                                                            ----
    6.   ADP                                                                                                                                                                                                                                              ---                                                               ----
                                                                                                                                                                             2].810                                      577.392              38 1.U78    S                                                                                  _
                                                                                                                                                                                                                                                                                                                                            _1 __
    Net Total (1 -2-3-4+5+6)                60 1,202                  2].8 10                                  577 .]92           ]8 1.078     $     ~1 : ?21 __                                                    $
                 COUNTY OF WASHINGTON, PENNSYL VANIA
                               TITLE IV-D CHILD SUPPORT PROGRAM-
                                   CHILD SUPPORT ENFORCEMENT
                           PACSES OCSE 157 DATA RELIABILITY VALIDATION

                                 FOR THE FISCAL YEAR ENDED JUNE 30,2010

                                                           Exhibit A-l(b)



                       County: Washington                                         Year Ended: 6/30/10

                                                                                   Number of Cases          Case Problems
                      OCSE 157 Report Line Number                                    Reviewed                   Found

Line # 1    lV-D cases open at the end of the fisca l year.                                      4.00                       -


Line #2     IV -D cases open at the end of the fiscal year with support
            orders estab l ished.                                                                4.00                       -


Li ne #5    Ch ildren in IV-D cases open at the end of th e fisca l year that
            were born out of wed lock.                                                           4.00                       -


Line #6     Children in IV-D cases open at the end of the fisca l year who
            were born out of wed lock with paternity resolved.                                   4.00                       -


Line #2 1   Cases open at the end of the fiscal year in wh ich medical
            support is ordered                                                                   4.00                       -


Line #23    Cases open at the end of the fiscal year where health
            in surance is provided as ordered                                                    4.00                       -


Line #24    Total amou nt of current support due for the fisca l year fo r IV-D
            cases, excl uding emancipated children                                               4.00                       -


Line #25    Total amount of support disbursed as current support during
            the fiscal year for IV-D cases, exclud in g emancipated children                     4.00                       -


Line #28    Cases with arrears due during the fiscal year (I % I /08 - 9/30/09)                      4.00                   -


Li ne #29   Cases with Disbursements on arrears during the fiscal year
            (10/01 /08 - 9/30/09)                                                                    4.00                   -




                                                                    90
      COUNTY OF WASHINGTON, PENNSYLVANIA
          MEDICAL ASSISTANCE TRANSPORTATION PROGRAM
            SCHEDULE OF REVENUES AND EXPENDITURES

               FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010

                                       Exhibit III


                                                         Reported          Actual
Service Data

Expenditures:
 Group I Clients                                     $     2,810,226   $   2,810,226
 Group II Clients                                            679,743         679,743

   Total expenditures                                $     3,489,969   $   3,489,969

Allocation Data

Revenues:
 Department of Public Welfare                        $     3,486,840   $   3,486,840
 Interest income                                               3,129           3,129

   Total revenues                                          3,489,969       3,489,969

Funds Expended:
  Operating costs                                          3,251,534       3,251,534
 Administrative costs                                        238,435         238,435

   Total funds expended                                    3,489,969        3,489,969

Excess of Revenues Over Expenditures                 $                 $




                                           91
                                                        COUNTY OF WASHINGTON, PENNSYLVANIA
                                                                    MENTAL HEALTH SERVICES
                                                    SCHEDULE OF REVENUES , EXPENDITURES, AND CARRYOVER FUNDS

                                                         FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010

                                                                                           Exhibit IV (a) MH


                                                                   DPW Funds Avai lable                        Cost Eligible         Balance                    CSR State
                           Source of                                                           Total             forDPW                of          Grant Fund Grant Fund CSR - Promise TOTAL FUND
                          DPW Funding                     Carryover       Allotment          Allocation        Participation          Funds        Adjustments Adjustments Adjustments  BALANCE
                                                             (I)             (2)                (3)                 (4)                (5)            (6A)        (6B)        (6C)         (7)
      A. MH Services                                     $ 219,888       $7,031 , 116      $ 7,251,004        $ 7,234,662        $     16,342      $   23 ,893       $   -   $       -   $     40,235


      B.OTHERSTATEFUNDS
          1. Spec. Res.                                              -                 -                  -                  -                 -                 -       -        -                  -
          2. BH Initiative                                           -       526,751            526,751            526,751                     -                 -       -        -                  -
         3. BH IGT                                                   -              -                     -                  -                 -                 -       -        -                  -
         4. New Directio ns                                          -              -                     -                  -                 -                 -       -        -                  -
         5. Personal Care Homes                                      -              -                     -                  -                 -                 -       -        -                  -
'i)
IV       6. County Assistance Offices                                -              -                     -                  -                 -                 -       -        -                  -
         7. Facility and Services Enhancements                     -                -                     -                  -                 -                 -       -        -                  -
         8. Reserved                                               -                -                     -                  -                 -                 -       -        -                  -
         9. Total Other State                                      -         526,751           526,751             526,751                     -                 -       -        -                  -
      C. SSBG                                                      -          62,162            62, 162             62,162                     -                 -       -        -                  -
      D. CMHSBG                                                    -         584,684           584,684             584,684                     -                 -       -        -                  -
      E. OTHER FEDERAL FUNDS
         I. Maximi zi ng Participation Project                     -          45 ,029            45,029              3,634             41,395                    -       -        -           41 ,395
         2. Client Level Repo11ing Project
         3. PATH Homeless                                          -                -                    -                -                    -             -           -        -                  -
         4. Capitalization of POMS                                 -                -                    -                -                    -             -           -        -                  -
         5. MH Systems Transformation                              -                -                    -                -                    -             -           -        -                  -
         6. Youth Suicide Prevention                               -                -                    -                -                    -             -           -        -                  -
         7. Jail Diversion & Trauma Recovery                       -                -                    -                -                    -             -           -       -                   -
         8. Emergency Response - L.A. Fitness                      -                -                    -                -                    -             -           -       -                   -
         9. Terrorism Rel ated Disaster Relief                     -                -                 -                   -                    -             -           -       -                   -
         10. Hospital Prep Prog - Cris Counseling                  -           2,645              2,645                   -             2,645                -           -       -             2,645
         11. Biotersm Hosp Prep/Pub Hth Prep Resp           16,946                 -             16,946                   -            16,946                -           -       -            16,946
         12. Reserved                                              -               -                  -                   -                    -             -           -       -                   -
         13. Total Other Federal                            16,946           47,674             64,620               3,634            60,986                 -           -       -            60,986

      F. TOTAL                                           $ 236,834       $ 8,252,387       $ 8,489,221        $ 8,411 ,893       $    77,328       $   23 ,893       $   -   $   -       $   101 ,22 1
                         COUNTY OF WASHINGTON, PENNSYLVANIA
                                        MENTAL HEALTH PROGRAM
                                   REPORT OF INCOME AND EXPENDITURES
                                        SINGLE AUDIT SUPPLEMENT

                           FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 201 0

                                                     Exhibit IV (b) !VIR



                                                  Administrator's       Community       Intensive Case                      Day Treatment
                                                     Office               Services       Management         Outpatient        (Part Hosp.)
 I TOTAL ALLOCATION                              $               -      $          -   $               -    $        -      $              -
 II TOTAL EXPENDITURES                                1,892,875             729,432            478,676        71 1,849              381,063
III Costs Over Allocation
     A. County Funded Eli gible                                     -             -                    -               -                      -
     B. County Funded Ineligible                                    -             -                    -               -                      -
     C. Other Eli gible                                             -             -                    -               -                      -
     D . Other Ineligible                                           -         1,006                    -               -
     E . Total Costs Over Allocation                                -         1,006                    -               -                      -
IV . REVENUES
     A. Program Service Fees                                        -              -                   -               -              4,316
     B. Private Insurance Fees                                      -              -                   -        379,773             219,574
     C. Medical Assistance                                          -              -             33 ,564          7,708               5,796
     D . Medical Assistance - MA 325                                -              -                   -               -                   -
     E. Room and Board                                              -              -                   -               -                   -
     F. Earned Interest                                     4, 11 7                -                   -               -                   -
     G. Other                                           1,064,785            11 ,900                    -              -                   -
     H. Total Revenue                                   1,068,902            11,900              33 ,564        387,481             229,686
V. DPW REII'v1BURSEMENT
     A. Base Allocation 90%                              196,950            357,531                   -          74,705                       -
     B. Base Allocation 100%                                    -                  -           341 ,898                 -           15 1,377
     C. DPW Categorical Fund ing 90% Subtotal                   -                 -                     -               -                  -
     D. DPW Categorical Fund ing 100% Subtotal           524,462            308,863             103,2 14        149,253                       -
     E. SSBG 90% Adult                                          -                  -                   -                -                     -
         SSBG 90% Child                                             -              -                    -               -                     -
         SSBG 100% Adult                                            -              -                    -               -                     -
         SSBG 100% Child                                            -              -                    -               -                     -
     F. CMHSBG Non-Categorical Funding 90%                      -                  -                    -               -                     -
         CMHSBG Non-Categorical Funding 100%               80,677            10,406                     -        92, 11 0                     -
         CMHSBG Categorical Funding                                 -              -                    -               -                     -
VI. COUNTY MATCH
     10% County Match                                      21 ,8 84          39,726                     -         8,300                       -
VII TOTAL DPW REII'v1BURSEMENT
     AND COUNTY MATCH                                     823 ,973          7 16,526            445,112         324,368              151 ,377

VIII TOTAL CARRYOVER                             $                  -   $          -   $                -   $           -   $                 -

                                                                                                                                (Continued)




                                                               93
                                     COUNTY OF WASHINGTON, PENNSYLVANIA
                                                       MENTAL HEALTH PROGRAM
                                                  REPORT OF INCOME AND EXPENDITURES
                                                       SINGLE AUDIT SUPPLEMENT

                                        FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 20 10

                                                             Exhibit IV (b) MH, Con tin ued


                                                     Crisis      Community            Vocational     Soc Rehab        Fami ly         Commun ity     Family Based
                                                  Intervention   Employment         Rehabilitation     Services     Support Svcs     Res. Services     Services
  I. TOTAL ALLOCATION                             $          -   $        -         $            -   $          -   $           -    $           -   $            -
 II. TOTAL EXPENDITURES                             1,269,978       185,977              108,222        490,377          20, 118        2,5 17,878         57, 11 8
 III Costs Over Allocation
     A. County Funded E ligible                              -             -                     -              -               -                -                   -
     B. County Funded Ineligib le                            -             -                     -              -               -                                    -
     C. Other Eligible                                       -             -                     -              -               -                -                   -
     D. Other Ineligible                               14,272              -                     -           461                -             510                    -
     E. Total Costs Over All ocation                   14,272              -                     -           46 1               -             510                    -
IV. REVENUES
     A. Program Service Fees                          11 8,900             -                  899               -               -                -                   -
     B. Pri vate Insurance Fees                       2 16,085             -                     -              -               -                -                   -
     C. Medical Assistance                            232,996              -                  692               -               -                -          16,154
     D . Med ical Assistance - MA 325                        -             -                     -              -               -                -                   -
     E Room and Board                                        -             -                  375               -               -         284,77 1                   -
     F. Earned Interest                                      -          639                   28 1              -               -             5 19                   -
     G. Other                                             350        74,38 1               32,083         29,084                -           2, 121                   -
     H. Total Revenue                                 568,33 1       75,020                34,330         29 ,084               -         287,41 1          16, 154
 V. DPW REIMBURSEMENT
     A. Base Allocation 90%                            60,945        28,790                36,044         69,937            8,29 1        264,5 14                   -
     B. Base Allocation 100%                           36,000              -                     -              -                -               -          40,964
     C. DPW Categorical Funding 90% Subtotal                 -             -                     -              -                -               -                   -
     D. DPW Categori cal Fund ing 100% Subtotal       58 3,659       78 ,968               33,843        383 ,124          10,906       1,9 36,053                   -
     E SSBG 90% Adu lt                                       -             -                     -              -                -               -                   -
         SSBG 90% Chi ld                                     -             -                     -              -                -               -                   -
         SSBG 100% Ad ult                                    -             -                     -              -                -               -                   -
         SSBG 100% Chi ld                                    -             -                     -              -                -               -                   -
     F. CMHSBG Non-Categorical Funding 90%                   -             -                     -              -                -               -                   -
         CMHSBG Non-Categorical Funding 100%                 -             -                     -              -                -               -                   -
         CMHSBG Categorical Fund ing                         -             -                     -              -                -               -                   -
VI. COUNTY MATCH                                             -             -                     -              -                -               -                   -
     10% County Match                                   6,771         3,199                 4,005          7,771              92 1         29,390                    -
VII. TOTAL DPW REIMBURSEMENT
     AND COUNTY MATCH                                 687,375       110,957                73 ,892       460,832          20,118        2,229,957           40,964

VIII TOTAL CARRYOVER                              $          - $           -        $            -   $          -   $            - $             - $                 -

                                                                                                                                                       (Continued)




                                                                               94
                            COUNTY OF WASHINGTON, PENNSYLVANIA
                                           MENTAL HEALTH PROGRAM
                                      REPORT OF INCOME AND EXPENDITURES
                                           SINGLE AUDIT SUPPLEMENT

                              FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010

                                                Exh ibi t IV (b) MH, Continu ed




                                                 Comm Trtmnt   Admin                        Emerg             Hsng            Psych
                                                   Teams     Management                      Svcs           Suppt Svcs        Rehab        Total
  I. TOTAL ALLOCATION                            $         - $          -               $          -    $            -       $       - $ 8,489,22 1
 II. TOTAL EXPENDITURES                              103,860   1,244,291                     469,326           654,204        365 ,012  11 ,680,256
III. Costs Over Allocation
     A. County Funded Eligible                               -                     -               -                  -               -                -
     B. County Funded Ineligib le                            -                     -               -                  -               -                -
     C. Other Eligible                                       -                     -               -                  -               -                -
     D. Other Ineligib le                                    -               32,305            1,347                276               -          50,177
     E. Total Costs Over Allocation                          -               32,305            1,347                276               -          50, 177
IV. REVENUES
     A. Program Service Fees                                  -                   97                -                    -            -         124,2 12
     B. Private Insurance Fees                                -                    -                -                 -               -         815,432
     C. Medical Ass istance                                   -                    -                -                 -               -         296,910
     D. Medical Assistance - MA 325                           -                    -                -                 -               -                -
     E. Room and Board                                        -                    -                -            9,793                -         294,939
     F. Earned Interest                                       -               1, 186           4,760                  -              -           11 ,502
     G. Other                                                 -              19,439           72,675           163,895           9,584        1,480,297
     H. Total Revenue                                         -              20,722           77,435           173,688           9,584        3,023,292
 V. DPW REIMBURSEMENT
     A. Base Allocation 90%                                  -              306,902          210,590            138,861              -        1,754,060
     B. Base Allocation 100%                                 -                     -               -                   -      110,319           680,558
     C. DPW Categorical Funding 90% Subtotal                 -                     -               -                   -             -                -
     D. DPW Categorical Funding 100% Subtotal          103,860              461,79 1          81,373            325,951       245, 109        5,330,429
     E. SSBG 90% Adult                                       -                     -                -                    -           -                 -
        SSBG 90% Child                                       -                     -                -                    -            -                -
        SSBG 100% Adult                                      -               62,162                -                     -            -          62,162
        SSBG 100% Child                                      -                     -               -                     -            -                -
     F. CMHSBG Non-Categorical Funding 90%                    -                    -               -                     -            -               -
        CMHSBG Non-Categorical Funding 100%                   -             326,309           75,182                     -            -         584,684
        CMHSBG Categorical Funding                            -                    -                -                    -            -                -
VI. COUNTY MATCH                                                                                                                                      -
     10% County Match                                         -               34,100          23,399             15,428               -         194,894
VII. TOTAL DPW REIMBURSEMENT
     AND COUNTY MATCH                                  103,860             1,191 ,264        390,544            480,240       355,428         8,606,787

VIII. TOTAL CARRYOVER                             $           -        $            -   $           -   $                -   $        -   $      77,328

                                                                                                                                          (Concluded)




                                                                  95
                                                       COUNTY OF WASHINGTON, PENNSYLVANIA
                                                                 MENTAL RETARDATION SERVICES
                                                   SCHEDULE OF REVENUES, EXPENDITURES, AND CARRYOVER FUNDS
                                                                   SINGLE AUDIT SUPPLEMENT
                                                        FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 201 0
                                                                                         Exh ibit IV (c) MR


                                                                    DPW Funds Available                           Cost Eligible       Balance                    CSR State
                               Sources of              Carryover                               Total               forDPW               of          Grant Fund Grant Fund CSR Promise       Total
                              DPW Funding               Funds            Allotment           Allocation           Participation        Funds        Adjustments A djustments Adjustments Fund Balance
                                                          (I)               (2)                  (3)                   (4)              (5)            (6A)         (6B)        (6C)          (7)
      A. MR Services
         1. Community (NR/Res)                        $ 117, 178     $      719,580      $      836,758       $        668,67 1   $     168,087     $        -   $       - $          -   $   168,087
         2. SSBG                                                -            92,954              92,954                 92,954                -              -           -            -             -
         3. Reserved                                            -                 -                   -                       -               -              -           -            -             -
         4. Subtotal MR Services                         117, 178           812,534             929,712                761 ,625         168,087              -           -            -       168,087
      B. Waiver
         1. Waiver Administration                          1, 143           240,309             241 ,452               215,040           26,412              -          -             -        26,4 12
         2. Reserved                                    4 19,509           (419,509)                   -                     -                -              -          -             -              -
         3. Subtotal Waiver                             420,652            (179,200)            241,452                215,040           26,412              -          -             -        26,412
\0
0--
      C. Other
         1. Elwyn                                               -                    -                    -                   -                 -            -          -             -              -
         2. Money Follows the Person                            -                    -                    -                   -                 -            -          -             -              -
         3. Services for Individuals with Autism                -                    -                    -                   -                 -            -          -             -              -   ;

         4. Reserved                                            -                    -                    -                   -                 -            -          -             -              -
         5. Subtotal Other                                      -                    -                    -                   -                 -            -          -             -              -
      D. TOTAL                                        $ 537,830      $      633,334      $    1, 171 , 164    $        976,665    $     194,499     $        -   $      -    $        -   $   194,499
           COUNTY OF WASHINGTON, PENNSYLVANIA
                         MENTAL RETARDATION PROGRAM
                       REPORT OF INCOME AND EXPENDITURES
                            SINGLE AUDIT SUPPLEMENT
             FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010
                                        Exhibit IV Cd) MR



                                                   Administrator's    Home & Comm        Community
                                                      Office            Services         Habilitation
  I. TOTAL ALLOCATION                             $               -   $          -   $                  -
 II. TOTAL EXPENDITURES                                  394,903                               64,444
III. Costs Over A llocation
     A. County Funded Eligible                                    -              -                      -
     B. County Funded Ineligible                                  -              -                      -
     C. Other Eligible                                            -              -                      -
     D. Other Ineligible                                          -                                     -
     E. Total Costs Over Allocation                               -              -                      -
IV. REVENUES
     A. Program Service Fees                                      -
     B. Private Insurance Fees                                    -              -                      -
     C. Medical Assistance                                        -              -                      -
     D. Medical Assistance-Administrative Claim              5,336               -                      -
     E. Room and Board                                            -              -                      -
     F. Interest                                                  -                                     -
     G. Other                                               11,280                              19,300
     H. Total Revenue                                       16,616               -              19,300
V. DPW REIMBURSEMENT
     A. Base Allocation 90%                               142,120                -              40,630
     B. Base Allocation 100%                                    -                -                      -
     C. DPW Categorical Funding 90%                               -              -                      -
     D. DPW Categorical Funding 100%                      220,376
     E. SSBG 90% Adult                                            -              -                      -
        SSBG 90% Child                                            -              -                      -
        SSBG 100 % Adult                                          -              -
        SSBG 100% Child                                           -              -                      -
                                                                  -              -                      -
VI. COUNTY MATCH
       10% County Match                                     15,791               -               4,514
VII. TOTAL DPW REIMBURSEMENT
     AND COUNTY MATCH                                     378 ,287               -              45,144

VIII . TOTAL CARRYOVER                            $               -   $          -   $                  -
                                                                                         (Continued)




                                                   97
                  COUNTY OF WASHINGTON, PENNSYLVANIA
                                MENTAL RETARDATION PROGRAM
                              REPORT OF INCOME AND EXPENDITURES
                                   SINGLE AUDIT SUPPLEMENT
                     FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010
                                          Exhibit IV C MR, Continued
                                                      d)


                                                     Supports                                         Pre-Vocational
                                                   Coordination    Employment   Transportation           Services
  I. TOTAL ALLOCATION                              $          -    $        -   $             -   $                    -
 II. TOTAL EXPENDITURES                                612 ,364                        10,792                109,555
III. Costs Over Allocation
     A. County Funded E ligib le                               -            -                 -                        -
     B. County Funded Ineligible                               -            -                 -                        -
     C. Other E ligib le                                       -            -                 -                        -
     D . Other Ineligible                                                   -                 -                        -
     E. Total Costs Over Allocation                            -            -                 -                        -
IV. REVENUES
     A. Program Service Fees                               503              -                 -                        -
     B. Private Insurance Fees                                 -            -                 -                        -
     C. Medical Assistance                             339,190              -                 -                        -
     D. Medical Assistance-Administrative Claims               -            -                 -                        -
     E. Room and Board                                         -            -                 -                        -
     F. Interest                                              76            -                 -
     G. Other                                                  -            -                 -                 6,500
     H. Total Revenue                                  339,769              -                 -                 6,500
V. DPW REIMBURSEMENT
     A. Base Allocation 90%                                    -            -             2,842                42,008
     B. Base Allocation 100%                                   -            -                 -                        -
     C. DPW Categorical Funding 90%                    245,336              -                 -                        -
     D. DPW Categorical Funding 100%                           -                                                       -
     E. SSBG 90% Adult                                         -            -                 -                21,206
         SSBG 90% Child                                        -            -                 -                        -
         SSBG 100% Adult                                       -                          7,634                32,817
         SSBG 100% Child                                       -            -                 -                        -
VI. COUNTY MATCH
       10% County Match                                  27,259             -              316                  7,024
VII. TOTAL DPW REIMBURSEMENT
     AND COUNTY MATCH                                  272,595              -            10,792               103,055
tvIII TOTAL CARRYOVER                              $           -   $        -   $             -   $                    -
                                                                                                        (Continued)




                                                         98
          COUNTY OF WASHINGTON, PENNSYLVANIA
                        MENTAL RETARDATION PROGRAM
                      REPORT OF INCOME AND EXPENDITURES
                           SINGLE AUDIT SUPPLEMENT
            FOR THE TWELVE MONTH PERIOD ENDED ruNE 30, 2010

                                 Exhibit IV Cd) MR, Continued


                                                                     Community
                                                     FD/FS           Residential             Total
  I. TOTAL ALLOCATION                            $             - $                 - $       1,171,164
 II. TOTAL EXPENDITURES                                 35,799            222,592            1,450,449
III. Costs Over Allocation
     A. County Funded Eligible                                 -                   -                     -
     B. County Funded Ineligible                               -                   -                     -
     C. Other Eligible                                         -                   -                     -
     D. Other Ineligible                                       -                                         -
     E. Total Costs Over Allocation                            -                   -                     -
IV. REVENUES
     A. Program Service Fees                                   -                                    503
     B. Private Insurance Fees                                 -                   -                     -
     C. Medical Assistance                                     -                   -           339,190
     D. Medical Assistance-Administrative Claims               -                   -             5,336
     E. Room and Board                                         -           31 ,169              31,169
     F. Interest                                               -                   -                76
     G. Other                                                  -                   -            37,080
     H. Total Revenue                                          -           31,169              413,354
V. DPW REIMBURSEMENT
     A. Base Allocation 90%                             31,679             18,056              277,335
     B. Base Allocation 100%                                   -          140,664              140,664
     C. DPW Categorical Funding 90%                            -                   -           245,336
     D. DPW Categorical Funding 100%                                                           220,376
     E. SSBG 90% Adult                                         -                   -            21,206
        SSBG 90% Child                                         -                   -                     -
        SSBG 100% Adult                                      600           30,697                71 ,748
        SSBG 100% Child                                        -                   -                     -
VI. COUNTY MATCH
       10% County Match                                  3,520              2,006                60,430
VII. TOTAL DPW REIMBURSEMENT
     AND COUNTY MATCH                                   35,799            191,423             1,037,095

~III TOTAL CARRYOVER                             $             - $                 -   $        194,499

                                                                                           (Concluded)



                                                99
                                                COUNTY OF WASHINGTON, PENNSYLVANIA
                                             MENTAL HEALTHIMENTAL RETARDATION PROGRAM
                                         TARGETED SERVICES MANAGEMENT (TSM)/SUPPORTS COORDINATION (SC)
                                                            COST SETTLEMENT REPORT
                                                                                Exhibit IV (e)


    COUNTY/JOINDERJADMINISTRA TIVE ENTITY                     Washington                                                     FISCAL YEAR                         2009 - 2010
    PROVIDER NAME:                                            Washington County MHlMR
    MASTER PROVIDER INDEX (MP!)                               100227296
    SERVICE LOCATION                                          0006

    Total Approved Budget Expenditures                                  $            37 1,56 1



                                                                            Actual Un its
    1.   Service Delivery Analysis:
           MA Eligible Units :
             a. SC/Consolidated and PFDS (W721 0)                                      16,838
             b. TSMITSM (T I 17) °
           Non-MA Units (Non FFP):
                                                                                           47

             c. Base/Case Management

                  Combined Units                                                       16,885


    2.   Expenditures:                                                                                Expend itures                  Allocation               Lower Alloc/Expend
o
o
          Total Program Expenditures
              Waiver - Con & PIFDS (W721 0)                                                       $            370,527
              TSM (T IOI7)                                                                        $              1,034       $                    2,000   $                     1,034
              Base (CM)                                                                           $


                                                                                                       Revenues                  Lower Alloc/Expend       Underpayment/(Overpayment)
    3.   Revenues:
                                                                                                  $                   832    $                 1,034      $                     202
          TSM (TIOI7)

             c. Total TSM revenues                                                                $                   832

    4.   Lower of Allocation or Expenditures minus Revenues                                       MA Funding
                                                                                                  $                   202
                                                                                                                            Underpayment/(Overpayment)



                                                                              Amount
    7.   Reconciliation Recap:
           Overpayment
             a. PROMISe Adjustment Request                             $
           Underpayment
             h. PROMISe Gross Adjustment requested
               to initiate payment                                     $                    202
             c. No PROMISe Gross Adjustment
               requested

                                                                                                                                                                  (Continued)
                                             COUNTY OF WASHINGTON, PENNSYLVANIA
                                          MENTAL HEALTHIMENTAL RETARDATION PROGRAM
                                       TARGETED SERVICES MANAGEMENT (TSM)/SUPPORTS COORDINATION (SC)
                                                          COST SETTLEMENT REPORT
                                                             Exhibit IV (e), (Continued)


CSR   Summary:
A.     Total Program Expendi tures                            $             1,034
81.    TSM PROMISe Revenue                                    $               832
82.    PROM ISe ilioss Adj ustment req uested                 $               202
8.     Total adj usted MA Revenue                             $             1,034
                                                                                                       (Concluded)
                                    COUNTY OF WASHINGTON, PENNSYLVANIA
                                          EARLY INTERVENTION SERVICES
                             SCHEDULE OF REVENUES, EXPENDITURES, AND CARRYOVER FUNDS
                                             SINGLE AUDIT SUPPLEMENT

                                      FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 20 10
                                                                    Exhibit V (a) EI



                                                    DPW Funds Available                  Cost Eligible     Balance
                     Sources                 Carryover                Total               forDPW             of          Grant Fund       Total
                     ofDPW                    Funds    Allotment    Allocation           Participation      Funds        Adjustments   Fund Balance
                     Funding                    (1)       (2)           (3)                   (4)            (5)            (6A)            (7)

    A Early Intervention
      1. State Early Intervention             $ 226,958   $ 1,441 ,853   $ 1,668,811     $    633 ,160   $ 1,035 ,65 1   $        - $     1,035,651
      2. State Early Intervention - Training          -         6,283          6,283            5,416             867             -             867   i

      3. EI Administration                            -        93,179         93 , 179         88,742          4,437              -           4,437
o     4. Infants & Todd lers wi Disabil ities
N
      (Part C)                                        -      133,285         133,285          133 ,285               -            -               -
      5. IT&F Waiver Servo                       20,047      783,814         803,861          690,429        113,432              -         113,432
      6. IT&F Waiver Admin.                           -       28,632          28,632           28,632                -            -               -
      7. Reserved                                     -              -               -               -               -            -               -
                                                                                                                                                  -
    8 TOTAL                                 $ 247,005     $ 2,487,046    $ 2,734,051     $   1,579,664   $ 1, 154,387    $        - $     1,154,387
                 COUNTY OF WASHINGTON, PENNSYLVANIA
                                EARL Y INTERVENTION SERVICES
                             REPORT OF INCOME AND EXPENDITURES
                                  SINGLE AUDIT SUPPLEMENT
                   FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010

                                               Exhibit V (b) EI



                                                    Administrator's        Early        Supports
                                                       Office           Intervention   Coordination     Totals
  I. TOTAL ALLOCATION                               $             -     $           - $             - $ 2,734,051
 II. TOTAL EXPENDITURES                                   127,234          1,663 ,586       282,188     2,073,008
III. Costs Over All ocation
     A. County Funded Eligible                                      -               -              -             -
     B. County Funded Ineligib le                                   -               -              -             -
     C. Other Eligible                                              -               -              -             -
     D. Other Ineligib le                                           -               -              -             -
     E. Total Costs Over Allocation                                 -               -              -             -
IV. REVENUES
     A. Program Service Fees                                        -               -              -             -
     B. Private Insurance Fees                                      -               -              -             -
     C Medical Assistance - MA EI                                   -        236,071        161,65 1      397,722
     D Medical Assistance - Administrative Claims                   -               -              -             -
     E. Interest                                                    -               -              -             -
     F. Other                                                       -               -              -             -
     G Total Revenue                                                -        236,071        161 ,651      397,722
 V. DPW REIMBURSEMENT
     A. Base Allocation 90%                                         -               -              -             -
     B. Base Allocation 100%                                        -               -              -             -
     C. DPW Categorical Funding 90%                           88,742         663 ,378       108,483       860,603
     D. DPW Categorical Funding 100%                          28,632         690,429               -      719,061
VI. COUNTY MATCH
     10% County Match                                           9,860         73 ,708        12,054         95,622
VII. TOTAL DPW REIMBURSEMENT
     AND COUNTY MATCH                                         127,234       1,427,515       120,537      1,675,286

VIII. TOTAL CARRYOVER                               $               -   $           -   $          -   $ 1,154,387




                                                        103
      COUNTY OF WASHINGTON, PENNSYLVANIA
                HUMAN SERVICES DEVELOPMENT FUND
              SCHEDULE OF REVENUES AND EXPENDITURES

             FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010

                                       Exhibit X


                                                       Budget            Actual
Revenues:
 Pennsylvania Department of Public Welfare         $      424,546    $      424,546
 Interest income                                                                749

  Total revenues                                          424,546           425 ,295

Expenditures:
 Adult Services                                            31 ,052           29,693
 Aging Services                                            57,973            61 ,727
 Children and Youth Services                              211,348           211 ,348
 Mental Retardation Services                               25,800            25,800
 Generic Services                                          35,611            37,499
 Specialized Services                                      10,265            10,265
 Service Coordination                                      10,320             6,964
 County Administration                                     42,177            41 ,999

  Total expenditures                                      424,546           425 ,295

Excess of Revenues Over Expenditures               $                 $




                                             104
                                  COUNTY OF WASHINGTON, PENNSYLVANIA
                                                             CCIS DAYCARE
                                              SCHEDULE OF CHILD CARE INFORMATION SERVICES
                                                       RECAP FOR FISCAL YEAR 2010

                                                                                                                         Exhibit VIII (b)


     CONTRACTOR                           Washington County Commissioners                                                                                                           COUNTY              Washington
     FEDERAL ID NO:                       25-60010430                                                                                                                               PREPARED BY         Gina Steranko
     CONTRACT NO:                         DC-09-639992                                                                                                                              PHONE NO.:          724-250-4010

                                                                         LOW INCOME                                                                           FORMER T ANF                                    LI & FT
                                                                      ADMIN                                                      SERVICE                   ADMIN      SERVICE                                 TOTAL
     REVENUE
       DPW Funds                          $                                                     535 ,882                     $        5,737,629        $              86,460        $     958,493       $       7,318,464
       Interest                                            -",,-~.:d:t·                     -                                             3,567                                               594                   4,161
       Audit Adjustments                                                                                             -             -:.~                                         -                                        -
o
VI     Other (e.g. , Penalties)                                                                                      -           - .~.s                                         -                                         -
                                               .;:: . -;  ~;~-.;     l":~ i;<i.':~~~;'J~ ~t~~                                                      -        ..~~~     ~-"                           -                     -
                                                ~~ :~ ~~ !J~                 _ _ :.:.::_    ~-~.          ::                                       -       ~     ~ ~_       ~                       -                     -

                                  I              :;..::- , _ _ _   ~~~..     r:~ ~~:: w~.               -:" . "      ~)                            _       rL_~--='"   _F                           _                     _
                                               ;"J~t;_~·             .~ .. "     ~.__       _    loll   lJ-"                                       _         , ,- r    3                            _                     _


                                                         -.l-;~~~    _ • .:. •   -~:~:::.                                                          -                                              -              -


     TOTAL REVENUE                        $                                                     535,882                      $        5,741 ,196       $              86,460        $     959,087       $       7,322,625

     EXPENDITURES
       Final Report Totals                $                                                     500,147                      $       5,676,545         $              90,265        $     948,466       $       7,215,423
                                                         ~~11~ _~ ~- I.,   ~-                                            I                     _                                                  _                       _
                                                         ....;,a.::'..


                                      ~       ..fi                 -:'n'~ ~"tI_~.                          "_~
                                               ~_~l.
                                                          -,,['!

                                                           -                                               -                                   -

                                                                                                                                               -
                                                                                                                                                                -
                                                                                                                                                               _ jl~"~~
                                                                                                                                                                                                  -

                                                                                                                                                                                                  -
                                                                                                                                                                                                                -

                                                                                                                                                                                                                          -


                                      1       'too . •   _~~ '!. L. __            .£                             ~                             -                                                  -             -

                                  I                      ~'~ ~_-~::)~, ~ ~ ~                                                                   _                                                  _ _

     TOTAL EXPENDITURES                   $                                                     500, 147                     $       5,676,545         $              90,265        $     948,466       $       7,215,423
     TOTALDUEDPW                          $                                                      35,735                      $            64,651       $              (3 ,805) $           10,621       $        107,202


                                                                                                                                                                                                            (Continued)
                                                                                        COUNTY OF WASHINGTON, PENNSYLVANIA
                                                                                                           CCIS DA YCARE
                                                                                            SCHEDULE OF CHILD CARE INFORMA nON SERVICES
                                                                                                     RECAP FOR FISCAL YEAR 20 10

                                                                                                               Exhibit VlII(b), Continued


     CONTRACTOR                                   Washingto n County Commissioners                                    COUNTY                               Washington
     FEDERAL ID NO:                               25 -600 10430                                                       PREPARED BY                          Gina Steranko
     CONTRACT NO:                                 DC-09-639992                                                        PHONE NO.:                           724 -250-40 10

                                                                                   TANF                                                   STAT E                      SERVICE                 STATE                       FOOD STAMPS
                                     TANF                                                                                  TANF
                                      FSS                                                                                                 MOEIGA                                Genl          MOEIGA
                                                                                                                          TOTAL
                                                      Trainin   J       WS - Training       Working      WS-Working                        FSS                 State Moe     AssistlWS2       TOTAL            FSS                Service         Total
     REVENUE
       DPW Funds                 $    11 9. 111   $     261 ,871        $     37,896    $      77,773    $    3,441   $     500,092   $      25.025        $      78,000     $     2 12   $     103 ,237   $    39.608        $ 126,846       $    166,454
       Interest                                              137                  27               46            14             224                                   91              4               96                                91              91
       Audit Ad justments
       Other (e.g., Penalties)
                                                                    -                                             -
     TOTAL REVENUE               $    11 9, 111   $     262,008         $    37,923     $      77,8 19   $    3,455   $    500,3 16   $      25 ,025       $      78,09 1    $     216    $     103,333    $    39,608        $ 126,937      $     166,545



     EXPEN DITURES
       Final Report Totals       $    113.059     $     252,064         $    39,837     $      80,773    $    3,329   $    489,062    $      23.754        $      8 1,68 1   $     511    $     105,945    $    37.595        $ 124 ,288     $     16 1,883
                                                                                                                  -
                                                                                                                                                       I                                                                  I
o                                                             -
0>
     TOTAL EXPENDITURES               11 3,059          252,064              39,837            80,773         3,329        489,062          23 ,754               8 1,681          511          105,945         37,595            124 ,288         161 ;883

     TOTAL DUE DPW               $      6,052     $       9,943         $     (1,914) $        (2,954) $       126    $     11 ,254   $       1,271        $      (3, 589) $      (295) $        (2,6 13) $      2,01 3       $     2,649    $      _4~6~

                                                                                                                                                                                                                                             (Concluded)
        COUNTY OF WASHINGTON, PENNSYLVANIA
                                  CCIS DAYCARE
                     SCHEDULE OF REVENUES AND EXPENDITURES
                         ADMINISTRATIVE BUDGET - FUND A

                     FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010

                                              Exhibit XVIII (a)


                                                                      Budget                Actual

Revenues:
  Pennsylvania Department of Public Welfare                   $           606,473       $       606,473

EXEenditures:
 Personnel:
   Salaries and wages                                                     271 ,105              263,301
   Employee benefits                                                      125,576               115,756

        Total personnel                                                   396,68 1              379,057

  Operations:
   Occupancy                                                               38,250                29,138
   Communications:
      Telephone                                                             11 ,250                  4,415
      Advertising                                                           12,300                   2,773
      Printing                                                               7,500                     557
      Postage                                                               11 ,250                  9,006

        Total communications                                               42,300                    16,752

    Supplies                                                                9,600                    4,990
    Equipment (under $5,000)                                               22,800                    3,310
    Travel                                                                  3,500                      359
    Audit                                                                   3,490                    2,980
    Other:
      Insurance                                                             1,664                      622
      Miscellaneous                                                        25,476                      228

        Total other                                                         27,140                     850

    Indirect costs                                                             62,712                62,712

        Total operations                                                  209,792                121 ,091

           Total expenditures                                              606,473               500,147

Excess (Deficiency) of Revenues
 Over Expenditures                                                $                     $        106,326




                                                     107
        COUNTY OF WASHINGTON, PENNSYLVANIA
                                 CCIS DAYCARE
                    SCHEDULE OF REVENUES AND EXPENDITURES
                        ADMINISTRATIVE BUDGET - FUND C
                    FOR THE TWELVE MONTH PERlOD ENDED JUNE 30, 2010

                                     Exhibit XVIII (b)


                                                             Budget             Actual

Revenues:
 Pennsylvania Department of Public Welfare               $      99,133      $      99,133

Expenditures:
 Personnel:
   Salaries and wages                                           55,077             55,077
   Employee benefits                                            25 ,512            25 ,512

       Total personnel                                          80,589             80,589

 Operations:
    Occupancy                                                    2,250               2,250
  Communications:
    Telephone                                                         900                353
    Advertising                                                       600                135
    Printing                                                          600                 45
    Postage                                                           900                721

       Total communications                                      3,000               1,254

   Supplies                                                         900                  900
   Equipment (under $5 ,000)                                      1,500                  197
   Travel                                                           550                  100
   Audit                                                            570                  570
   Other:
     Insurance                                                      353                  136
     Miscellaneous                                                5,401                  250

       Total other                                                5,754                  385

   Indirect costs                                                 4,020              4,020

       Total operations                                          18,544              9,676

        Total expenditures                                       99,133             90,265

Excess of Revenues Over Expenditures                     $                  $        8,868




                                             108
         COUNTY OF WASHINGTON, PENNSYLVANIA
                               CCIS DAYCARE
                  SCHEDULE OF REVENUES AND EXPENDITURES
                       ADMINISTRATIVE BUDGET - TANF
                 FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010

                                     Exhibit XVIII (c)


                                                             Budget            Actual

Revenues:
 Pennsylvania Department of Public Welfare               $     199,088     $     199,088

Expenditures:
 Personnel:
   Salaries and wages                                           73,404            73 ,404
   Employee benefits                                            34,001            34,001

       Total personnel                                         107,405           107,405

 Operations:
    Occupancy                                                    4,500              4,500
  Communications:
    Telephone                                                    2,850              2,168
    Advertising                                                  2,100                859
    Printing                                                     1,900                297
    Postage                                                      2,850              2,295

       Total communications                                       9,700             5,620

   Supplies                                                       4,500             3,317
   Equipment (under $5,000)                                       5,700             1,914
    Travel                                                          950               352
   Audit                                                            940               940
   Other:
    Carry forward                                               35 ,700            35,700
    Insurance                                                       983               656
    Other                                                       15,042                337

     Indirect costs                                              13,668            13,668

      Total operations                                           91 ,683           67,003

          Total expenditures                                    199,088           174,408

Excess of Revenues Over Expenditures                     $                 $       24,680




                                             109
Administration/Fami ly Support Services Budget Detail
                                                                            Exh ibit XVIII (d)
                                                                                                                                                                       Help   I Logou t
                                    Penn sylvania's Enterprise (0 Link lnformotionJor Children Across Net'dorks
                                      Hom e   I   R&R   I   Pr'o vid e r   I Case I   Pay m ents         I   Rep orts   I Co rres pond ence I         Admini s tration

                                      Funds Hom e           I   Fund ing Streams        I   Al loca t ions     I   Avai lable r- unds   I   f"1 CCA   I   AeJ m rnjFam Sup 5'1(5 Budgets


Administration/Family Support Services                                                ISe lect.    . .
Budget Detail

    Fiscill Ye ar           Funding Source                         County                      Allocation Amount                              Unal l ocat e cl Funds
    FY 200 9 - 10         Low I ncoill e - Fu nd A                Washing to n                      $ 5 35,882 00                                 ( $7 0, 59 1. 00 )


 Budget Info rmat ion Detail for Washington


                                           Administration/Family Support Services Budget

 Budget Category                                   Budget Amount                            Expenditures YTD                         Last Updated Date

 Personnel
   Salaries                                                         $271,105.00                                     $263 , 300 .96                             07/09/2010
   Benefits                                                         $125,576.00                                     $115,755 .88                               07/09/2010
 Pers on nel Sub Total                                             $396,681.00                                     $379,056.84
Occupancy                                                            $38,250 .00                                     $29,138 . 16                              07/ 09/2010
Communications
  Telephone                                                           $11,250.00                                        $4,415.04                              05/07/2010
  Advertising                                                         $12,300.00                                        $2,773.24                              04/09/2010
  Printing                                                             $7,500.00                                        $557.20                                05/ 07/2010
  Postage                                                             $11,250.00                                      $9,006.25                                05/07/2010
Communications Sub Total                                             $42,300 .00                                    $16,751.73
Supp li es                                                             $9,600.00                                      $4,990.19                                05/07/2010
Equipm ent                                                            $22,800.00                                      $3,309.57                                07/09/2010
Travel                                                                 $3,500 .00                                       $358.93                                05/07/2010
Audit                                                                  $3,490.00                                      $2,980.00                                08/07/2009
Other
  Insurance                                                           $1,664.00                                         $622.26                                05/07/2010
  Lega l Costs                                                       $13,870.00                                           $0.00                                06/04/2009
  Other                                                              $11,606.00                                         $227.72                                05/07/2010
Other Sub Total                                                     $27,140.00                                         $849.98
Indirect Costs                                                       $62,712.00                                      $62,712.00                                07/ 09/20 10
Totals YTD                                                         $606,473.00                                     $500,147.40
NEW          EXPEND ITU RES         TRANSFERS .                  HISTORY                RETURN TO SUMMARY '




User1D: c-gi sl e ron I Office : CClS of Was hington County                                                                                                                     Production




                                                                                      110
Administration/Family Support Services Budget Detail

                                                                                     Exhibit XVIII (e)
                                                                                                                                                                     Help   I Logout
                                            Pennsylvania's Enterprise 10 Link lnformo(ionjor Children Across Networks
                                             Hom~    I   R& R   I   Provider    I Case I   Payments       I   Reports   I   Correspondence       I   Administration

                                             Fund s Horne           I   Funding Str,"ams     ! Allocations I     AvailClblc Funds       I   rvlCCA   I   Adm in/Fam Sup S'fCS BudgC'ts


Administration/Family Support Services                                                     ISelect. , ,                                                              il GO
Budget Detail

     F isca l Year                Funcling Source                          County                 Al location Amount                          Un a ll ocated Funds
     FY 2009-10                Former TANF - Fund C                       Wasllington                  $94,342.00                                 ($4,791.00)


 Budget Information Detail for Washington


                                                   Administration/ Family Support Services Budget

Budget Category                                           Budget Amount                      Expenditures YTD                          Last Updated Date

Personnel
  Sa laries                                                                   $55,077,00                           $55,077.00                                 07/09/2010
   Benefits                                                                   $25,512 .00                          $25,512.00                                 07/09/2010
Personnel Sub Total                                                          $80,589.00                           $80,589.0 0
Occupancy                                                                      $2,250.00                                $2,250.00                             07/09/2010
Communications
  Telephone                                                                       $900.00                                   $353 .20                          05/07/2010
   Advertising                                                                    $600.00                                   $135.28                           04/09/2010
  Printing                                                                        $600 .00                                   $44.69                           05/07/2010
  Postage                                                                         $900 .00                                  $720.50                           05/07/2010 .'
Co mm u nicati ons Sub Total                                                  $3,000.00                             $1,253.67
Supp li es                                                                       $900.00                              $900.00                                 07/09/2010
Equ i pment                                                                    $1,500.00                                    $196.82                           05/07/2010
Trave l                                                                          $550.00                                    $100,00                           07/09/2010
Audit                                                                            $570.00                                    $570.00                           08/07/2009
Other
 Insurance                                                                       $353.00                                    $135.76                           05/07/2010
  Lega l Costs                                                                 $2,941.00                                      $0.00                           06/04/2009
  Other                                                                        $2,460 .00                                   $249 .6B                          06/04/2010    i'>; ;

Other Sub Total                                                               $5,754.0 0                                 $385.44
I ndirect Costs                                                                $4,020.00                                $4,020.00                             07/09/2010 :>'.'
Totals YTD                                                                  $99,133.00                            $90,264.93
NEW          EXPEN DITUR ES'                TRANSFERS                    HISTOR'(; ·: '     RETURN TO SUMMARY '




liserlD: c-SJist!C rall I Office :   ens   of Wasilingtoll Cou nty                                                                                                             Production




                                                                                            III
Administration/Family Support Services Budget Detail
                                                                         Exhibit XVIII (Q

                                                                                                                                                  He lp   I Log out
                                           Pennsylvania's Enterprise 10 Link fnJormationjor Children Across Nel'.'1orks
                                            Hom e   I R&R I Provider I Case I Paym ents I Reports I Correspond ence I Admi ni stra tion

                                            Funds Home I Fu ndi ng St re am s       i ,6,llocations I Availa ble Fu nck; I I'· K CA I A.clm in/Fa f)l Sup Svcs Budge ts

 Administration/ Family Support Services                                       ISelect . ..
 Budget Detail

     Fiscal Year                   Funding So urce            County                  ,i ll ocation A m ount               Unallocated Funds
     FY 2009 - 10                      TANF                  Washin g ton                  $191,44 3. 10                        ($7, 644 8 1 )


 Budget Information Deta il for Washington


                                                 Administration/Family Support Services Budget

 Budget Category                                      Budget Amount                 Expenditures YTD                   Last Updated Date

 Person nel
   Salaries                                                          $73,404.00                        $73,404,00                         07/09/2010
   Benefits                                                          $34,001.00                       $34,001.00                          07/09/2010
Personnel Sub Total                                                $107/405.00                      $107,405.00
Occupancy                                                             $4, 500 ,00                      $4 ,500.00                         07/09/2010
Communications
 Teleph o n e                                                         $2,850,00                          $2,168.44                        07/09/2010 '
  Advertising                                                         $2,100,00                            $859.48                        07/09/2010
  Printing                                                            $1/900,00                            $296, 53                       07/09/2010
  Postage                                                             $2,850, 00                         $2,2 9 5.43                      07/09/2010
Communications Sub Total                                             $9/700.00                          $5,619.88
Suppli es                                                             $4,500,00                          $3,3 16,69                       07/09/2010
Equipm ent                                                            $5,700,00                          $1,913,78                        07/09/2010
Trave l                                                                 $950,00                            $351.90                        07/0 9/2010
Audit                                                                   $9 40 ,00                          $9 40 .00                      08/07/2009
Other
  Carry Forward                                                      $35,699.91                        $35,699,91                         12/09/2009
  Insurance                                                             $983.00                           $656 ,17                        07/09/2010
  Legal Costs                                                         $8,189,00                             $0,00                         06/04/2009
  Oth e r                                                             $6,853.00                          $336 .63                         06/04/2010
Other Sub Total                                                     $51,724 . 91                     $36/692.71
Indirect Costs                                                       $13,668,00                       $13,668.00                          07/09/2010
Totals YTD                                                         $199/087.91                      $174/407.96
NEW '         E X PENDITURES               TRANSFERS           HISTORY           RETURN TO SUMMARY




l/serI D : c-gisteriln   I   Orfice : CCIS of Washingto n Counlv                                                                                            ProdUClion




                                                                                       112
Admini stration/Family SuppOli Services Budget Summary

                                                                                                      Exhib it XVIII (g)
                                                                                                                                                                                  He lp   I   Logou t
                                               Pennsylvan ia's Enterprise                  (0   Link InJormationJor Ch ildren Across Net ~'Iorks
                                                   Ho m e   I   R&R   I   Provider    I   Case   I   Payments    I   Repo rt s   I   Cor respondence     I   A clm i ni st r'a ti o n

                                                   Fund s Hom e           I   Fu nd in g Streams      I tlllocatiollS I Avai lable      Funds   I    MCCA    I Adm ill/Fa m      Su p Svcs Budgets


Administration/Family Support Services Budg et Summary

                                 Fi sca.l Yea r                                                                                  Age n cy
                                 FY 2009 - 10                                                                                Co mm on wealt h




 Administ r ation/F a mily Suppo r t Se r v ices Alloca tion Info rm a t i on


                                                                                                                Office     IWa s h i n g to~ ::::1      FY 1 2009~ lo         3         GO -


     CCIS              county                             Funding Source                                 Admin/Fam Sup Svcs Allocation                          Expend i tures YTD
Was hing to n      Washington                                   d
                                         bQ w.J n~.QJ)1"L :..fyn. .A                                                                       $535,882.00                      $5 00 , 14 7 .40
                                         Fo r m e r TANF - Fu nd C                                                                          $94,342 .00                       $90,264 .93
                                         JA NE                                                                                             $191 ,443. 10                    $ 174,407.96 ;
                                                   2!i!l; t a fl9;L\"''-Qr.I$_ ~QRQrL~
                                         ~D.g[.Q.LEl                                                                                                  $0 .00                            $0.00
                                                     Page 1 o f 1




Use rl D- ( ·giste r·a n I Of fice :   eel S o f   W as l1ing t on Co un t y                                                                                                                  Production




                                                                                                          113
                                                          Exhibit XVIII (h)

             pennsylvania                          RE417 -Payment Recap Report
             Child Care IVorks                           CCIS :   Washington



 Funding Fiscal Year:   2009-10

 Provider:    ALL

                                                                                                              Ca re
                                                                               Expenditures     Ove rpayments Check                  T ota l

Washington


Washington
Low Income (Fund A) - Regular

    Totai" Low Income (Fund A) - Regula r                                      $5,619,202.79            $0.00    $2,153.4   $5,617,049.33
                                                                                                                        6
Low Income (Fund A) - Teen Parent

    Total Low Income (Fund A) - Te en Parent                                      $59 ,601.20           $0.00    $106 .02      $59,495.18
General Assistance/Work Support 2 - Regular

    Total General AssistanceIWork Su pport 2 - Regular                               $523.44            $0 .00    $12.73          $510.71
Former TANF (Fund C) - Regular

    Total Former TANF (Fund C) - Regular                                         $948,757.35            $0.00    $291 .12    $948,466.23
TANF Training - Regular

    Total TANF Training - Regular                                                $252,269.68            $0 .00   $205 .27    $252,064.41
TANF Work Support - Training - Regular

    Total TANF Work Support - Training - Regular                                  $39,837.00            $0.00      $0.00       $39,837 .00
TANF Working - Regular

    Total TANF Working - Regular                                                  $80,826.96            $0 .00    $54 .00      $80,772 .96
TANF Work Support - Working - Regular

    Total TANF Work Support - Working - Regular                                    $3,337.60            $0 .00     $8.88        $3,328.72
TANF State MOE - Regular

    Total TANF State MOE - Reg-ular                                               $81,700.77            $0 .00    $20.00       $81,680.77
Food Stamps - Regular

    Total Food Stamps - Regular                                                  $124,376.69            $0.00     $88.52     $124,288.17

Washington Total                                                              $7,210,433.48            $0.00 $2,940.0 $7,207,493.48
                                                                                                                     0
Washington                                               Total                $7,210,433 .48           $0.00 $2 ,940.0 $7,207,493.48
                                                                                                                     0


Washington County Funding Source Totals:

               Low Income (Fund A)                                             $5,678,803.99            $0.00    $2,259.4   $5,676,544.51
                                                                                                                       8




               General AssistanceIWork Support 2                                    $523.44             $0.00     $12.73         $510.71




                                                         RE417 -Payment Recap Report                                           Page 1 or 3



                                                                   114                                                         (Continued)
                                                                                               Exhibit XVIII (h)

  •                              pe:n?sylyani ~                                           RE417-Payment Recap Report
   f!j;J
   • •. ~ : ;.~:-. ~~ " ""': .
                                 C/u/ci ( '(I rc IV
                                  ."
                                                   orA's
                                       ' , ;:~':~'J::; ," .   • '. ,..,. '. :~,:. "
                                                                                               CCIS:   Washington

Funding Fiscal Year:                                            2009-1                °
Provider:                         ALL

                                                                                                                                                 Care
                                                                                                                    Expenditures    Overpayments Check                  Total



                                            Former TANF (Fund C)                                                     $948,757,35           $0,00    $29 1,12    $948,466,23




                                           TANF Training                                                             $252 ,269,68          $0,00    $205,27     $252,06441




                                           TANF Work Support - Training                                               $39,837,00           $0,00      $0,00       $39 ,837,00




                                          TANF Working                                                                $80,826,96           $0,00     $54,00       $80,772,96




                                          TANF Work Support - Working                                                  $3,337,60           $0,00      $8,88        $3,328,72




                                          TANF State MOE                                                              $81,700D             $0,00     $20,00       $81,680 ,77




                                          Food Stamps                                                                $124,376,69           $0 ,00    $88,52     $124,288,17




                                         Washington County Total:                                                   $7,210,433,48          $0,00    $2,940,0   $7,207,493A8
                                                                                                                                                           0
CCIS Funding Source Totals:



                                         Low Income (Fund A)                                                        $5,678,803,99          $0,00    $2,259.4   $5,676,544 ,51
                                                                                                                                                           8




                                         General Assistance/Work Support 2                                               $523,44           $0,00     $12,73          $510 ,71




                                        Former TANF (Fund C)                                                         $948,757,35           $0,00    $291,12     $948,466,23




                                                                                               RE417 -Payment Recap Report                                        Page 2 of 3



                                                                                                                                                                     Continued
                                                                                                            115
                                                                 Exhibit XVIII (h)

             pennsylvani a                                RE417-Payment Recap Report
             <,r    ;'[    :
                           ....   ,',;   f    ,\   .'.f
             Child ((ire IYorks                                CCIS :   Wa s hington

Funding Fiscal Year :                        2009·10

Provid er:         ALL

                                                                                                                    Care
                                                                                       Expenditure s   Overpayments Ch eck                T o tal

                          TANF Training                                                 $252 ,269.68           $0 .00   $205.27    $252 ,064.41




                          TANF Work Support· Training                                    $39,837.00            $0 .00     $0 .00    $39, 837.00




                          TANF Working                                                   $80,826 ,96           $0 ,00    $54,00     $80 ,772.96




                          TANF Work Support - Working                                     $3,337 .60           $0.00      $8.88      $3 ,328.72




                          TANF State MOE                                                 $81 ,700.77           $0 .00    $20.00     $81,680.77




                          Food Stamps                                                   $124,376.69            $0 .00    $88 .52   $124,288.17

eels   Grand Total:                                                                $7,210,433.48              $0,00 $2,940 .0 $7,207,493.48
                                                                                                                              o




                                                               RE417 -Pa yment Recap Report                                         Page 3 of 3



                                                                                 116                                                  Continued
                                      COUNTY OF WASHINGTON, PENNSYLVANIA
                                              COMBINED HOMELESS ASSISTANCE PROGRAMS
                                                      REVENUES AND EXPENSES

                                              FOR THE TWELVE MONTH PERIOD ENDED JUNE 30, 2010

                                                                               Ex hib it XIX


       1. SOURCES OF FUNDING                                                                                                             TOTAL AV AILABLE
                                                                                                                                              FUNDS
       DPW Allocation                                                                                                                  A   $          276,661
       Client Contributions                                                                                                            B                     -
       Other                                                                                                                           C                     -
       Interest Earned                                                                                                                 D                  317
                                                                                          TOTAL HAP FUNDING (A+B+C+D=E)                E               276,978

       II. EXPENSES             Bridge        Case            Rental          Emergency       Innovative Supportive                        TOTAL EXPENSES
                                Housing       Management      Assistance      Shelter         Housing Services
       On Behalf of Clients               -                           21 ,300               -                                  -       F                2 1,300
       Personnel                          -          55,051           33 ,156                                                  -       G                88,207
-..J
       Operating                     18,788           1,3 I 7          6,896          114,619                                  -       H               141 ,620
       Fixed Assets\Equipment             -                                -                                                   -       I                       -
              SUBTOTAL               18,788          56,368          61 ,352             114,619                               -       J               251 ,127

                                                                                 County Administration (Max Total 10% HAP Funding KI                    25 ,85 1
                                                                                 Total HAP Expenses (J+K=L)                       IL        $          276,978

                                                                                 T()t~   Une)(pended Funds (E-L= )                 I        $
      County of Washington,
          Pennsylvania
Independent Auditor's Reports in Accordance
        with OMB Circular A-133

      Year Ended December 31 , 2010
                                         Pittsburgh                 Harrisburg                  Butler
                                         Three Gateway Center       3003 North Front Street     112 Ho ll ywood Drive
                                         Six West                   Suite 101                   Suite 204
                                         Pittsburgh, PA 15222                                   Butler, PA 16001
MaherDuessel                             Main 412 .471.5500
                                                                    Harrisburg, PA 17110
                                                                    Main 717. 232.1230          Main 724.285.6800
Certified Public Accountants             Fax    412 .471. 5508      Fax    7 17.232.8230        Fax    724. 285.6875




         Independent Auditor's Report on Internal Control over Financial Reporting and on
    Compliance and Other Matters Based on an Audit of Primary Government Financial Statements
                  Performed in Accordance with Government Auditing Standards

Board of County Commissioners
County Controller
County of Washington, Pennsylvania

We have audited the primary government financial statements (financial statements) of the governmental
activities, the business-type activities, each major fund , and the aggregate remaining fund information of
the County of Washington, Pennsylvania (County), as of and for the year ended December 31 , 2010,
which collectively comprise the County's basic financial statements and have issued our report thereon
dated July 27, 2011. 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.

Internal Control over Financial Reporting

In planning and performing our audit, we considered the County's internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on
the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
County's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the County's internal control over financial reporting.

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 County's financial statements will not be prevented, or detected and corrected on a
timely basis .

Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting that might be deficiencies, significant deficiencies, or material weaknesses . We did
not identify any deficiencies in internal control over financial reporting that we consider to be material
weaknesses, as defined above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the County's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards .
                                                            Pursuing the profession while promoting the public good~
                                                                                               www.md-cpas.com


                                                     118
Board of County Commissioners
County Controller
County of Washington, Pennsylvania
Independent Auditor's Report on Internal Control over
  Financial Reporting and on Compliance and Other Matters


We noted certain other matters that we reported to management of the County in a separate letter dated
July 27,2011.

                                           **********

This report is intended solely for the information and use of the Board of County Commissioners, County
Controller, audit committee, management, others within the County, federal and state awarding agencies,
and pass-through entities and is not intended to be and should not be used by anyone other than these
specified parties.




Pittsburgh, Pennsylvania
July 27,2011




                                                  119
                                        Pittsburgh                 Harrisburg                  Butler
                                        Three Gateway Center       3003 North Front Street     112 Hollywood Drive
                                        Six West                   Suite 101                   Suite 204
                                                                                               Butler, PA 16001
MaherDuessel                            Pittsburgh, PA 15222
                                        Main 412.471.5500
                                                                   Harrisbu rg, PA 17110
                                                                   Main 717.232.1230           Main 724.285.6800
Certified Public Accountants            Fax    412.47 1.5508       Fax    717.232.8230         Fax    724.28 5.6875




Independent Auditor' s Report on Compliance with Requirements That Could Have a Direct and Material
    Effect on Each Major Federal and Pennsylvania Department of Public Welfare (DPW) Program
          and on Internal Control over Compliance in Accordance with OMB Circular A-133
                                and the DPW Compliance Supplement

Board of County Commissioners
County Controller
County of Washington, Pennsylvania

Compliance

We have audited the County of Washington's, Pennsylvania (County), compliance requirements
described in the u.S. Office of Management and Budget (OMB) Circular A-J33 Compliance Supplement
and the Pennsylvania Department of Public Welfare (DPW) Compliance Supplement that could have a
direct and material effect on each of its major federal and DPW programs for the year ended December
31, 2010. The County's major federal programs are identified in the summary of auditor's results section
of the accompanying schedule of findings and questioned costs. The County's major DPW programs are
identified on the Schedule of DPW Financial Assistance. Compliance with the requirements of laws,
regulations, contracts, and grants applicable to each of its major federal and DPW programs is the
responsibility of the County's management. Our responsibility is to express an opinion on the County's
compliance based on our audit.

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 OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations, and the DPW Compliance Supplement.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred
to above that could have a direct and material effect on a major federal program occurred. An audit
includes examining, on a test basis, evidence about the County's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe that our
audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the
County's compliance with those requirements.

In our opinion, the County complied, in all material respects, with the compliance requirements referred
to above that could have a direct and material effect on each of its major federal programs and DPW
programs for the year ended December 31 , 2010.

Internal Control over Compliance

Management of the County is responsible for establishing and maintaining effective internal control over
compliance with the requirements of laws, regulations, contracts, and grants applicable to federal and
DPW programs . In planning and performing our audit, we considered the County's internal control over
compliance with the requirements that could have a direct and material effect on a major federal and
DPW program in order to determine our auditing procedures for the purpose of expressing our opinion on
compliance and to test and report on internal control over compliance in accordance with OMB Circular
                                                           Pursuing the profession while promoting the public good~
                                                                                               www.md-c pas. com

                                                     120
Board of County Commissioners
County Controller
County of Washington, Pennsylvania
Independent Auditor's RepOlt on Compliance with Requirements
 That Could Have a Direct and Material Effect on Each Major
 Federal and Pennsylvania Department of Public Welfare Program


A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the County's internal
control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal or DPW 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 or
DPW program wi ll not be prevented, or detected and corrected, on a timely basis.

Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above.

                                            **********

This report is intended solely for the information and use of the Board of Commissioners, County
Controller, audit committee, management, others within the County, federal and state awarding agencies,
and pass-through entities and is not intended to be and should not be used by anyone other than these
specified parties.



Pittsburgh, Pennsylvania
July 27, 2011




                                                   121
           COUNTY OF WASHINGTON, PENNSYLVANIA
                  SCHEDULE OF FINDINGS AND QUESTIONED COSTS

                                YEAR ENDED DECEMBER 31 , 2010




I.   Summary of Audit Results

     1. Type of auditor's report issued: Unqualified

     2. Internal control over financial reporting:

            Material weakness(es) identified? 0 yes IZl no
            Significant deficiencies identified that are not considered to be material weakness(es)?
            Dyes IZl none reported

     3. Noncompliance material to financial statements noted?    0   yes   IZl no
     4. Internal control over major programs:

            Material weakness(es) identified? 0 yes IZl no
            Significant deficiencies identified that are not considered to be material weakness(es)?
            Dyes IZl none reported

     5. Type of auditor's report issued on compliance for major programs: Unqualified


     6. Any audit findings disclosed that are required to be reported in accordance with Section
           510(a) of Circular A-I33? 0 yes IZl no

     7. Major Programs:

         CFDA Number(s)                  Name of Federal Program or Cluster
         14.235                          Supportive Housing Program - HUD SNAPS XIII, XIV,
                                          XV
         14.257                          ARRA Homelessness Prevention and Rapid Re-
                                          Housing Program (Recovery Act Funded)
         81.128                          ARRA Energy Efficiency and Conservation Block Grant
                                         Early Intervention Services Cluster:
         84.181                           Special Education - Grants for Infants and Families
         84.393                           ARRA Special Education - Grants for Infants and
                                           Families, Recovery Act
         93.563                          Child Support Enforcement!ARRA Child Support
                                          Enforcement
         93.658                          Foster Care - Title IV-E
         93.659                          Adoption Assistance!ARRA Adoption Assistance
         93.958                          Block Grants for Community Mental
                                         Health Services



                                                     122
          COUNTY OF WASHINGTON, PENNSYLVANIA
                SCHEDULE OF FINDINGS AND QUESTIONED COSTS

                              YEAR ENDED DECEMBER 31,2010

                                        CCDF Cluster:
       93.575                            Child Care and Development Block Grant
       93.596                            Child Care Mandatory and Matching Funds of the Child
                                          Care and Development Fund
       93.713                            ARRA - Child Care and Development Block Grant

    8. Dollar threshold used to distinguish between type A and type B programs: $530,662

    9. Auditee qualified as low-risk auditee?   D yes ~ no
II. Findings related to the financial statements which are required to be reported in accordance
    with GAGAS.

                                   No matters were reported.

III. Findings and questioned costs for federal awards.

                                   No matters were reported.




                                                 123
COUNTY OF WASHINGTON, PENNSYLVANIA
  SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS

          YEAR ENDED DECEMBER 31,2010



                   NONE NOTED




                       124
         APPENDIX C


FORM OF BOND COUNSEL OPINION
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                             [FORM BOND COUNSEL OPINION]




                                         June 20, 2012


County of Washington
100 West Beau Street
Washington, PA 15301

               Re:    County of Washington, Pennsylvania
                      $ _______ General Obligation Bonds, Federally Taxable Series A of 2012
                      $_______ General Obligation Bonds, Series B of 2012

               You have requested our opinion as to the legality of the general obligation bonds
which consist of General Obligation Bonds, Federally Taxable Series A of 2012 (the “Series A
Bonds”) and $___________ General Obligation Bonds, Series B of 2012 (the “Series B Bonds,”
together with the Series A Bonds, the “Bonds”). The Bonds are issued by the County of
Washington, Pennsylvania (the “County”), under the provisions of the Pennsylvania Local
Government Unit Debt Act, 53 Pa. Cons. Stat. §8001 et. seq., as amended (the “Act”), and
pursuant to an Ordinance duly adopted by the Board of Commissioners of the County (the
“Council”) on May 17, 2012 (the “Ordinance”). The Series A Bonds are being issued for the
purpose of providing funds to: (1) fund termination of a swap related to the County’s General
Obligation Bonds, Series of 2002 ; and (2) pay the costs and expenses of issuing the Series A
Bonds (the” Series A Project”). The Series B Bonds are being issued for the purpose of
providing funds to: (1) advance refund a portion of the Washington County Authority’s
Guaranteed Lease Revenue Bonds, Series of 1992 (Capital Appreciation Bonds); (2) currently
refund the County’s General Obligation Bonds, Series of 2002A; (3) fund various capital
projects of the County; and (4) pay the costs and expenses of issuing the Series B Bonds (the
“Series B Project,” together with the Series A Project, the “Project”).

                 The County has covenanted in the Ordinance (i) to include the amount of debt
service for the Bonds for each fiscal year in which such sums are due and payable in its budget
for that year, (ii) to appropriate such amounts from its general revenues for the payment of such
debt service, and (iii) to duly and punctually pay, or cause to be paid, from its sinking funds or
any other of its revenues or funds, the principal or redemption price of, and interest on, the
Bonds at the dates and places and in the manner stated in the Bonds, according to the true intent
and meaning thereof; for such budgeting, appropriation and payment the County in the
Ordinance has pledged its full faith, credit and taxing power.

               As Bond Counsel for the County, we have examined the relevant provisions of the
Constitution of the Commonwealth of Pennsylvania (the “Constitution”); the Acts of Assembly


#16000948 v1
County of Washington
June 20, 2012
Page 2


pursuant to which the Bonds are authorized, issued and sold; the transcript of proceedings filed
with the Pennsylvania Department of Community and Economic Development (the
“Department”); and certain statements, affidavits and other documents which we have
considered pertinent.

               In rendering this opinion we have examined and relied upon (a) the opinion of
counsel to the County with respect, inter alia, to the due adoption by the County of the
Ordinance in accordance with applicable laws and (b) the accuracy of the statements and
representations and the performance by the County of its covenants set forth in the Ordinance
and the County’s Tax Certificate delivered on this date in connection with the issuance of the
Bonds.

                As to questions of fact material to our opinion, we have relied upon the
representations of the County contained in the Ordinance and in the certified proceedings and
other certifications of public officials and others furnished to us without undertaking to verify the
same by independent investigation.

               Based on the foregoing, we are of the opinion that:

              1.     The County is authorized under the provisions of the Constitution and
laws of the Commonwealth of Pennsylvania to issue the Bonds for the purposes above set forth,
and the County has authorized the issuance thereof.

               2.      Assuming the County’s debt statement as filed with the Department is
accurate and correct, the outstanding debt of the County, including debt represented by the
Bonds, is within the debt limitations of the Act.

               3.     The Bonds are a valid and binding general obligation of the County
payable from the revenues of the County from whatever source derived, which revenues, at the
time of the issuance and sale of the Bonds, include ad valorem taxes levied upon all the taxable
property within the County, without limitation as to rate or amount.

               4.     Under the laws of the Commonwealth of Pennsylvania, as currently
enacted and construed, the Bonds are exempt from personal property taxes in Pennsylvania and
the interest on the Bonds is exempt from personal income tax and Pennsylvania corporate net
income tax.

              5.     Interest on the Series B Bonds is excluded from the gross income of the
owners of the Series B Bonds for federal income tax purposes under existing law, as currently
enacted and construed. Interest on the Series B Bonds is not an item of tax preference for


#16000948 v1
County of Washington
June 20, 2012
Page 3


purposes of the federal alternative minimum tax imposed upon individuals and corporations.
Interest on a Series B Bond held by a corporation (other than an S corporation, regulated
investment company, real estate investment trust or real estate mortgage investment conduit)
may be indirectly subject to alternative minimum tax because of its inclusion in the earnings and
profits of the corporate holder. Interest on a Series B Bond held by a foreign corporation may be
subject to the branch profits tax imposed by the Internal Revenue Code of 1986, as amended (the
“Code”).

               Ownership of the Series B Bonds may give rise to collateral federal income tax
consequences to certain taxpayers, including, without limitation, financial institutions, property
and casualty insurance companies, S corporations with Subchapter C earnings and profits,
individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may
be deemed to have incurred or continued indebtedness to purchase or carry the Series B Bonds.
We express no opinion as to such collateral federal income tax consequences.

               [The initial public offering price of the Series B Bonds of certain maturities (the
“Discount Bonds”) is less than the amount payable at maturity. An amount not less than the
difference between the initial public offering price of the Discount Bonds and the amount
payable at maturity constitutes original issue discount. We are of the opinion that the appropriate
portion of such original issue discount allocable to the original and each subsequent holder of a
Discount Bond, will, upon sale, exchange, redemption or payment at maturity of such Discount
Bond, be treated as interest and excluded from gross income for federal income tax purposes to
the same extent as the stated interest on the Discount Bonds.]

                In providing this opinion, we advise you that it may be determined in the future
that interest on the Series B Bonds, retroactive to the date of issuance thereof or prospectively,
will not be excluded from the gross income of the owners of the Series B Bonds for federal
income tax purposes if certain requirements of the Code are not met. The County has
covenanted in the Ordinance to comply with such requirements.

               We express no opinion herein as to the accuracy, adequacy or completeness of the
Official Statement relating to the Bonds.

                The rights of the owners of the Bonds and the enforceability of the Bonds may be
limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting
creditors’ rights generally and by equitable principles, whether considered at law or in equity.



                                             PEPPER HAMILTON LLP


#16000948 v1
[ THIS PAGE INTENTIONALLY LEFT BLANK ]
              APPENDIX D


SPECIMEN MUNCIPAL BOND INSURANCE POLICY
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[MUNICIPAL BOND INSURANCE APPLIED FOR]
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