Legals April 17, 2019

Legal Notice Bonner County Natural Resources Committee The Board of Bonner County Commissioners are calling for letters of interest from persons interested in serving on the Bonner County Natural Resources Committee to advise the Bonner County Board of Commissioners in coordinating with Federal and State governments on natural resource issues impacting Bonner County. There is one (1) at-large position available for this Committee. The Board of Commissioners are looking for residents from Bonner County. The terms of commitment are indefinite. The committee meets once a month on the third (3rd) Friday at 3:00 p.m. at the Bonner County Administration Building. Please send a letter of interest to: Board of Bonner County Commissioners, 1500 Highway 2, Suite 308, Sandpoint, ID 83864. Or e-mail letter to jessi.webster@bonnercountyid.gov Letters of interest should be received no later than 5:00 p.m. on May 10, 2019. SNP LEGAL 6699 AD# 284138 APRIL 17, 24, MAY 1, 2019

PUBLIC NOTICE CITY OF PRIEST RIVER QUARTERLY FINANCIAL REPORT FISCAL YEAR 2019 SECOND QUARTER ENDING MARCH 31, 2019 FY19 BUDGET FY19 YEAR TO DATE PERCENT OF BUDGET GENERAL FUND Receipts $1,330,505.00 $1,473,422.59 110.74% Expenditures Personnel Expenses $600,901.00 $277,909.64 46.25% Operating & Other Expenses $270,952.00 $115,822.89 42.75% Capital Outlay $458,652.00 $ 21,476.84 4.68% Total Expenditures $1,330,505.00 $415,209.37 31.21% STREET FUND Receipts $2,401,820.00 $372,640.43 15.51% Expenditures Personnel Expenses $170,472.00 $ 76,580.40 44.92% Operating & Other Expenses $156,242.00 $ 74,602.60 47.75% Capital Outlay $2,075,106.00 $205,517.82 9.90% Total Expenditures $2,401,820.00 $356,700.82 14.85% WATER FUND Receipts $518,459.00 $204,771.28 39.50% Debt Service Receipts $181,756.00 $ 95,259.78 52.41% Total Receipts $700,215.00 $300,031.06 42.85% Expenditures Personnel Expenses $211,330.00 $ 94,924.56 44.92% Operating & Other Expenses $246,028.00 $101,759.27 41.36% Capital Outlay $60,837.00 $ 0.00 0.00% Debt Service $182,020.00 $ 262.76 .14% Total Expenditures $700,215.00 $196,946.59 28.13% WASTEWATER FUND Receipts $3,233,975.00 $232,932.30 7.20% Debt Service Receipts $185,837.00 $95,484.35 51.38% Total Receipts $3,419,812.00 $328,416.65 9.60% Expenditures Personnel Expenses $162,977.00 $76,361.36 46.85% Operating & Other Expenses $178,988.00 $88,822.12 49.62% Capital Outlay $2,891.395.00 $88,118.64 3.05% Debt Service $186,452.00 $613.10 .33% Total Expenditures $3,419,812.00 $253,915.22 7.42% IMPACT FEE FUND Receipt $12,841.00 $930.80 7.25% Expenditures Personnel Expenses $0.00 $0.00 0.00% Operating & Other Expenses $250.00 $0.00 0.00% Capital Outlay $12,591.00 $0.00 0.00% Total Expenditures $12,841.00 $0.00 0.00% Citizens are invited to inspect the detailed supporting records of the above financial statement. Laurel Thomas, CMC, City Clerk/Treasurer Laurel Thomas, CMC, City Clerk/Treasurer SNP LEGAL 6700 AD# 284147 APRIL 17, 2019

STATE TIMBER SALE CR200366, SHEEP TO MARKET A public oral auction will be conducted at the Idaho Department of Lands office, 2550 Highway 2 W., Sandpoint, ID 83864, at 9:00 a.m. local time, on Monday, May 13, 2019 for an estimated 3,490 MBF of timber marked or otherwise designated for cutting. In addition, there is an unestimated volume of forest products that may be removed at the option of the purchaser. Prior to bidding, eligible bidders shall present a certified check or bank draft payable to Treasurer, State of Idaho, or a bid bond acceptable to the State, in the amount of $47,753.60 which is 10% of the appraised net sale value of $477,536.00. The successful bidder's deposit will be forfeited to the State should the bidder fail to complete the contract. The State will not accept bids from parties who are delinquent on payments on existing state contracts. The average starting minimum bid price is $139.89 per MBF. The sale is located within Section 36, Township 54N, Range 04W, B.M., Bonner County, State of Idaho. Sale duration is 4 years. The sale may include blowdown and/or insect and disease infected timber which may result in additional volume and recovery reductions. Interested purchasers should carefully examine the sale and make their own estimates as to volume recovery, surface conditions, and proposed construction prior to bidding on the sale. Additional information concerning the timber and conditions of sale is available to the public and interested bidders on the department's timber sale website at http://web.idl.idaho.gov/timbersale/Search.aspx or from the Idaho Department of Lands office, Sandpoint, Idaho. Please note purchaser insurance requirements posted on the timber sale website. The Department of Lands, as authorized by the State Board of Land Commissioners reserves the right to reject any and all bids provided that good and sufficient grounds for rejecting the bid shall be stated in the rejection notice and shall not be in violation of applicable law. If you are disabled and need some form of accommodation, please call (208) 263-5104 five days prior to the date of sale. For text telephone services, please call 1-800-377-3529. SNP LEGAL 6688 AD# 283687 APRIL 17, 24, MAY 1, 8, 2019

STATE TIMBER SALE CR100464, LOST BEAVER A public oral auction will be conducted at the Idaho Department of Lands office, 4053 Cavanaugh Bay Road, Coolin, ID 83821, at 9:00 a.m. local time, on Thursday, May 9, 2019 for an estimated 3,800 MBF of timber marked or otherwise designated for cutting. In addition, there is an unestimated volume of forest products that may be removed at the option of the purchaser. Prior to bidding, eligible bidders shall present a certified check or bank draft payable to Treasurer, State of Idaho, or a bid bond acceptable to the State, in the amount of $73,062.70 which is 10% of the appraised net sale value of $730,627.00. The successful bidder's deposit will be forfeited to the State should the bidder fail to complete the contract. The State will not accept bids from parties who are delinquent on payments on existing state contracts. The average starting minimum bid price is $212.87 per MBF. The sale is located within Sections 23, 24 and 26, Township 59N, Range 04W, B.M., Bonner County, State of Idaho. Sale duration is 3 years. The sale may include blowdown and/or insect and disease infected timber which may result in additional volume and recovery reductions. Interested purchasers should carefully examine the sale and make their own estimates as to volume recovery, surface conditions, and proposed construction prior to bidding on the sale. Additional information concerning the timber and conditions of sale is available to the public and interested bidders on the department's timber sale website at http://web.idl.idaho.gov/timbersale/Search.aspx or from the Idaho Department of Lands office, Coolin, Idaho. Please note purchaser insurance requirements posted on the timber sale website. The Department of Lands, as authorized by the State Board of Land Commissioners reserves the right to reject any and all bids provided that good and sufficient grounds for rejecting the bid shall be stated in the rejection notice and shall not be in violation of applicable law. If you are disabled and need some form of accommodation, please call (208) 443-2516 five days prior to the date of sale. For text telephone services, please call 1-800-377-3529. SNP LEGAL 6687 AD# 283678 APRIL 17, 24, MAY 1, 8, 2019

NOTICE OF TRUSTEE'S SALE On Tuesday, the 30th day of July, 2019, at the hour of 11:00 o'clock, a.m. Pacific Time, in the office of Attorney J. T. Diehl, located at 106 West Superior Street, Sandpoint, County of Bonner, State of Idaho, Attorney J. T. DIEHL, as Successor Trustee to Alliance Title and Escrow Corp., will sell at public auction, to the highest bidder, for cash, in lawful money of the United States of America, all payable at the time of the sale, the following described real property, situated in the County of Bonner, State of Idaho, and described as follows: Lot 20, SCHWEITZER RESORT TRACTS, according to the plat thereof, recorded in Book 3 of Plats, Page 1, records of Bonner County, Idaho. The Successor Trustee has no knowledge of a more particular description of the above referenced real property, but for the purposes of compliance with Idaho Code §60-113, the Trustee has been informed that the address of NKN Scott Lane, Sandpoint, Idaho 83864, may sometimes be associated with said real property. Said sale shall be made without covenant or warranty regarding title, possession or encumbrances to satisfy the obligation secured by and pursuant to the power of sale conferred in the Deed of Trust executed by TONY HAYES and MERRY A. BROWN-HAYES, husband and wife, (referred to as Grantor), to Alliance Title & Escrow Corp. and to its Successor Trustee, Attorney J. T. Diehl, for the benefit and security of JOSEPH G. LAPHAM, JR. 401(K) PLAN, as Beneficiary, recorded on February 14, 2008, as Instrument No. 746288 records of Bonner County, Idaho. The above Grantor is named to comply with Idaho Code §45-1506(4)(a). No representation is made that it is or is not presently responsible for this obligation. The default for which this sale is to be made is the failure to pay the monthly installments when due under the Deed of Trust and Promissory Note; together with service charges, late fees and any other costs, fees or expenses incurred by Beneficiary and/or Trustee associated with this foreclosure; the failure to pay the past due real estate taxes owing to Bonner County; and the failure to pay and properly discharge liens and encumbrances filed against the property. As of March 19, 2019, the principal balance owing is $47,599.80, together with interest accrued thereon in the sum of $6,945.23, for a total of principal and interest due and owing as of March 19, 2019, of $54,545.03, which principal amount continues to accrue interest at the per diem rate of $9.129 per day. In addition to the principal and the interest continuing to accrue there are also late charges, default fees, attorney's fees, trustee's fees, insurance, unpaid and accruing taxes, assessments, and other expenses associated with recording and mailing. All delinquent amounts are now due, together with any accruing charges and interest, unpaid and accruing taxes, assessments, trustee's fees, attorney's fees, recording costs, mailing fees and any additional amounts advanced to protect the security associated with this foreclosure, and that the Beneficiary elects to sell or cause the trust property to be sold to satisfy said obligation. DATED this 27th day of March, 2019. /s/ J. T. Diehl Attorney J. T. DIEHL, Successor Trustee 106 W. Superior Street Sandpoint, ID 83864 (208) 263-8529 SNP LEGAL 6675 AD# 281510 APRIL 3, 10, 17, 24, 2019

Financial Statements December 31, 2018 Pend Oreille Hospital District Pend Oreille Hospital District Table of Contents December 31, 2018 Independent Auditor's Report 1 Financial Statements Statement of Net Position and Governmental Fund Balance Sheet 3 Statement of Activities and Governmental Fund Statement of Revenues, Expenditures, and Changes in Net Position 4 Notes to Financial Statements 5 Supplementary Information District Revenue Compared with Maintenance and Operational Expenditures of the Hospital 8 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 9 Schedule of Findings and Responses 11 Independent Auditor's Report The Board of Directors Pend Oreille Hospital District Sandpoint, Idaho Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and the major fund of Pend Oreille Hospital District (the District), as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the District's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund of the District, as of December 31, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Management has omitted the management's discussion and analysis and the budgetary comparison analysis that the accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by the missing information. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District's financial statements. The supplementary information, the District Revenue Compared with Maintenance and Operational Expenditures of the Hospital (supplementary information), is presented for purposes of additional analysis and is not a required part of the financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 26, 2019 on our consideration of the District'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 solely 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 effectiveness of the District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance. Boise, Idaho March 26, 2019 Pend Oreille Hospital District Statement of Net Position and Governmental Fund Balance Sheet December 31, 2018 Governmental Adjustments Statement of Fund Note 2 Net Position Assets Property taxes receivable $ 1,147.752 $ $ 1,147,752 $ 1,147,752 $ $ 1,147,752 Liabilities, Deferred Inflow and Net Position Liability, due to Bonner General Hospital, Inc. $ 613,042 $ 534,710 $ 1,147,752 Deferred inflow, resources received in advance-property tax revenue 534,710 (534,710) $ - Net position - - - _____________________________________________ $ 1,147,752 $ - $ 1,147,752 Pend Oreille Hospital District Statement of Activities and Governmental Fund Statement of Revenues, Expenditures, and Changes in Net Position Year Ended December 31, 2018 Government Adjustments Statement Fund Note 3 Activities Revenue Property taxes $ 1,259,346 $ 49,181 $ 1,308,527 Total revenue 1,259,346 49,181 1,308.527 Expenditures In support of Bonner General Hospital, Inc 1,259,346 49,181 1,308,527 Total expenditures 1,259,346 49,181 1,308,527 Excess of Revenues over Expenditures - - - Net Position, Beginning of Year - - - Net Position, End of Year $ - - $ - ___________ ___________ __________ Pend Oreille Hospital District Notes to Financial Statements December 31, 2018 Note 1-Summary of Organization and Significant Accounting Policies Pend Oreille Hospital District (the District) is a political subdivision of the State of Idaho and was established to support and/or operate hospital facilities within the District, the geographical boundaries of which include the city of Sandpoint and approximately two-thirds of Bonner County, Idaho. Bonner General Hospital, Inc. (the Hospital) is a tax-exempt Idaho corporation organized for the purpose of constructing, maintaining, operating, and holding title to the Hospital facility in Bonner County. A cooperative agreement has existed between the District and the Hospital since 1981. This agreement provides that the Boards will jointly formulate the Hospital's operating budget and that certain operating costs shall be the responsibility of the District to be paid from the tax revenue available to the District. The District functions as an intermediary through which property taxes are levied for the purpose of providing financial support to the Hospital by Board resolution, toward payment of maintenance and operation expenditures. The financial statements of the District have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Financial Reporting Entity These statements present only the funds of the District in conformity with generally accepted accounting principles. Government-Wide and Fund Financial Statements The government-wide column of the financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government. 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 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. There were no program revenues in 2018. Taxes and other items not properly included among program revenues are reported instead as general revenues. As allowed under GASB 34, the District is reported as a "Single Purpose Entity."This allows for the government-wide financial statements to be combined with the fund-level, which is the General Fund, financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide column of the financial statements is reported using the economic resources measurement focus and the accrual basis of accounting. 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. Pend Oreille Hospital District Notes to Financial Statements December 31, 2018 The governmental fund column of the financial statements is 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 government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The District reports the following major governmental fund: General Fund -The District is a general fund. The general fund is used for all financial resources except those required to be accounted for in another fund. Property Taxes Receivable and Deferred Inflows of Resources Property taxes are recognized as revenue when the amount of taxes levied is measurable, and proceeds are available to finance current period expenditures. Available tax proceeds include property tax receivables expected to be collected within 60 days after year end. Property taxes attach as liens on properties on January 1, and are levied in September of each year. Tax notices are sent to taxpayers during November, with tax payments scheduled to be collected on or before December 20. Taxpayers may pay all or one half of their tax liability on or before December 20, and if one half of the amount is paid, they may pay the remaining balance by the following June 20. Since the District is on a December 31 fiscal year end, property taxes levied during September for collection in December are recorded as revenue. The succeeding year's June collections are recorded as deferred inflows of resources at the District's year end and recognized as revenue in the following fiscal year. Bonner County bills and collects taxes for the District. Deferred inflows of resources represent an increase in net position that applies to future periods and so will not be recognized as an inflow of resources (revenue) until then. The deferred inflows of resources reported in the financial statements are related to property taxes. Property taxes will be recognized as revenue in the year they become available. Liability, due to Bonner General Hospital, Inc. The liability, due to Bonner General Hospital, Inc. includes the property taxes to be received that will be transferred to Bonner General Hospital, Inc. Note 2-Explanation of Differences Between the Governmental Funds Balance Sheet and the Statement of Net Position "Total fund balances"in the District's governmental fund may differ from the "net position"of the governmental activities reported in the statement of net position as a result of the long-term economic focus of the statement of net position versus the current financial resources focus of the governmental fund balance sheet. Some of the property taxes receivable are not available to pay for current period expenditures and, therefore, are deferred inflows at the fund level $ 534,710 Some payments to Bonner General Hospital, Inc. are not due and payable in the current period and, therefore, are not reported at the fund level. All liabilities - both current and long-term are reported on the statement of net position. $ (534,710) Note 3-Explanation of Differences Between Governmental Fund Operating Statements and the Statement of Activities The "net change in fund balances"for governmental funds may differ from the "change in net position"for governmental activities reported in the statement of activities as a result of the long-term economic focus of the statement of activities versus the current financial resource focus of the governmental funds. Some property tax revenue in the statement of activities that does not provide current financial resources is not reported as revenue at the fund level. $ 49,181 Some expenditures in support of Bonner General Hospital, Inc. in the statement of activities that does not use current financial resources is not reported as expenditure at the fund level. $ 49,181 Supplementary Information December 31, 2018 Pend Oreille Hospital District Pend Oreille Hospital District District Revenue Compared with Maintenance and Operational Expenditures of the Hospital Year Ended December 31, 2018 Revenue $ 1,308,527 Maintenance and Operational Expenditure Maintenance 1,044,100 Rental/leased equipment 2,025,682 Fuel 1,004 Electricity 250,964 Gas 74,464 Water 72,159 Garbage disposal 46,305 Telephone 50,093 Insurance 763,579 Total maintenance and operational expenditures 4,328,350 Excess of Maintenance and Operational Expenditures of Bonner General Hospital, Inc., Over District Revenue $ (3,019,823) Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards The Board of Directors Pend Oreille Hospital District Sandpoint, Idaho We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities and major fund of Pend Oreille Hospital District (the District) as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our report thereon dated March 26, 2019. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify certain deficiencies in internal control, describe in the accompanying schedule of findings and responses as item 2018-1 that we consider to be a material weakness. Compliance and Other Matters As part of obtaining reasonable assurance about whether the District's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, and contracts, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The District's Response to Findings The District's response to the findings identified in our audit is described in the accompanying schedule of findings. The District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Boise, Idaho March 26, 2019 Pend Oreille Hospital District Schedule of Findings and Responses Year Ended December 31, 2018 Material Weakness 2018-1 Financial Statement Preparation Condition: Management does not have an internal control system in place designed to provide for the preparation of the financial statements being audited. Criteria: The District does not have an internal control system designed to provide for the preparation of the financial statements and accompanying notes to the financial statements. This circumstance is not unusual in an organization of this size. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of the cost or other conditions. Effect: Management must rely on the auditing firm to report financial data reliably in accordance with generally accepted accounting principles. Cause: The size of the organization and the limited number of accounting personnel makes it difficult to implement this level of internal control. Recommendation: Management should consider the costs and benefits of preparing their own report. Management's Response: Management is in agreement with the finding. Corrective Action Plan (CAP) Actions Planned in Response to Finding: We will rely on our auditors to prepare the financial statements. Explanation of Disagreement: None Planned Completion for Correction Action: Undetermined Plan to Monitor Completion of Corrective Action: Undetermined SNP LEGAL 6686 AD# 283613 APRIL 17, 2019