HomeMy Public PortalAboutAudit Report - District- FY99MIDPENINSULA REGIONAL
OPEN SPACE DISTRICT
Financial Statements and
Report of Independent Certified Public Accountants
March 31, 1999
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Report of Independent Certified Public Accountants
The Board of Directors
Midpeninsula Regional Open Space District
We have audited the accompanying general-purpose financial statements of the Midpeninsula Regional Open
Space District (the "District") as of and for the year ended March 31, 1999. These general-purpose financial
statements are the responsibility of the District's management. Our responsibility is to express an opinion on
these general-purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the general-purpose financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the general-purpose financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
general-purpose financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the general-purpose financial statements referred to above present fairly, in all material respects,
the financial position of the District at March 31, 1999, and the results of operations for the year then ended in
conformity with generally accepted accounting principles.
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Sari Jose, California
May 21, 1999
150 Almaden Blvd.
P.O. Box 6779
San Jose, CA 95113
Ted: 408 275-9000
Fax: 408 275-0582
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Midpeninsula Regional Open Space District
COMBINED BALANCE SHEET
March 31, 1999
Account Groups
ASSETS
Cash, including interest -bearing deposits and
cash equivalents
Restricted cash and cash equivalents
Unrestricted investments
Restricted investments
Property tax and other receivables
Prepaid expenses
Option for land/lease
Land
Structures and improvements
Equipment
Amount available in General Fund
Amount to be provided for retirement of general
long-term debt
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
Liabilities
Accounts payable
Accrued liabilities
Deposits
Deferred revenue
Long-term debt
Total liabilities
Fund equity
Investment in general fixed assets
Fund balance - unrestricted
Fund balance - restricted for land deposit
Total fund equity
TOTAL LIABILITIES AND FUND EQUITY
See accompanying notes to financial statements.
General
Fund
$ 23,215,124 $
1,748,192
443,109
2,946,156
3,807,335
23,352
10,500,000
General General
Fixed Long -Term
Assets Debt
166,654,984
8,726,095
1,763,180
Total
(Memorandum
Only)
$ 23,215,124
1,748,192
443,109
2,946,156
3,807,335
23,352
1^_,500,000
166,654,984
8,726,095
1,763,180
5,137,459 5,137,459
94,936,529 94,936,529
$ 42,683,268 $ 177,144,259 $ IC0,073,988 $ 319,901,515
$ 160,922 $
184,590
29,825
327,101
702,438
177,144,259
31,480,830
10,500,000
41,980,830 177,144,259
$ 160,922
184,590
29,825
327,101
100,073,988 100,073,988
100,073,988 100,776,426
177,144,259
31,480,830
10,500,000
219,125,089
$ 42,683,268 $ 177,144 259 $ 100,073,988 $ 319,901,515
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Midpeninsula Regional Open Space District
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - GENERAL FUND
For the year ended March 31, 1999
REVENUES
General property tax
State grants
Other property taxes
Interest
Rental income and other
Total
EXPENDITURES
Salaries and benefits
Professional services
Vehicle expenses
Rent
Site supplies and services
Utilities and communications
Other
Acquisitions:
Land
Structures and improvements
Equipment
Debt service
Principal retirement
Interest
Reserve fund used toward refunding
Total
Budget Actual
Variance
Favorable
(Unfavorable)
$11,957,000 $12,638,834 $ 681,834
465,000 793,988 328,988
185,000 143,936 (41,064)
900,000 1,317,218 417,218
965,000 1,155,440 190,440
14,472,000 16, 049,416 1,577,416
3,637,450 3,496,879 140,571
385,200 420,397 (35,197)
157,450 149,843 7,607
17,950 27,124 (9,174)
242,400 225,599 16,801
359,250 132,968 226,282
377,225 521,056 (143,831)
'.574,500 4,237,955 7,336,545
871,250 621,868 249,382
51,000 169,932 (8,932)
2,027,100 2,002,055 25,045
4,440,400 4,865,192 (424,792)
642,391 (642,391)
24,251,175 17,513,259 6,737,916
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (9,779,175) (1,463,843) 8,315,332
OTHER FINANCING SOURCES (USES)
Proceeds from lease
Proceeds from issuance of long-term debt, net
Proceeds from refunding debt, net
Payment to refunded debt escrow agent
Total
32,000
(32,000)
21,716,473 21,716,473
7,129,275 7,129,275
(7.125,599) (7,125,599).
32,000 21120,149 21.688,149
REVENUES AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES (9,747,175) 20,256,306 30,003,481
Fund balance, April 1, 1998
Fund balance, March 31, 1999
See accompanying notes to financial statements.
21,724,524 21,724,524
$11,977,349 $41,980,8.30 $ 30,003,481
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Midpeninsula Regional Open Space District
NOTES TO FINANCIAL STATEMENTS
March 31, 1999
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
1. Organization
The Midpeninsula Regional Open Space District (the "District") was formed in 1972 to acquire and
preserve open space land in the northern and western portions of Santa Clara County. In June 1976, the
southern and eastern portion of San Mateo County was annexed to the District. The District annexed a
small portion of the northern tip of Santa Cruz County in 1992.
2. Reporting Entity
The District and the Midpeninsula Regional Open Space District Financing Authority (the "Authority")
have a financial and operational relationship which meets the reporting entity definition criteria of
Governmental Accounting Standards Board ("GASB") Statement No. 14, The Financial Reporting Entity,
for inclusion of the Authority as a component unit of the District. Accordingly, the financial activities of
the Authority have been included in the financial statements of the District.
The following are those aspects of the relationship between the District and the Authority which satisfy
GASB No. 14 criteria.
Accountability
1. The Authority's Board of Directors was appointed by the District's Board of Directors, except for
the member appointed by the Board of Supervisors of Santa Clara County.
2. The District is able to impose its will upon the Authority, based on the following:
• All major financing arrangements, contracts, and other transactions of the Authority must have
the consent of the District.
• The District exercised significant influence over operations of the Authority. The District is the
sole obligator for any obligations issued by the Authority.
3. The Authority provides specific financial benefits or imposes specific financial burdens on the
District based upon the following:
• Any deficits incurred by the Authority will be reflected in the payments of the District.
• Any surpluses of the Authority revert to the District.
Scope of Public Service
The Authority is organized as a joint powers authority pursuant to the California Government Code.
The Authority was formed for the sole purpose of providing financing assistance to the District to
fund the acquisition of land to preserve and use as open space. The District intends to manage and
occupy all properties financed by the Authority.
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Midpeninsula Regional Open Space District
NO FES TO FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial Presentation
For financial presentation purposes, the Authority's financial activity has been blended, or combined,
with the financial data of the District. The financial statements present the Authority's financial
activity within the General Fund and the Account Groups. The -1-996 and 1999 Revenue Bonds issued
by the Authority are included in the General Long -Term Debt Account Group.
3. Basis of Accounting
The records of the District are maintained on the modified accrual basis of accounting. Under this
method, revenues are generally recognized in the period they become measurable and available, and
expenditures are generally recognized when the obligation is incurred, except for interest on long-term
debt, which is recognized as an expenditure when due. Substantially all revenues are susceptible to
accrual.
4. Investments
Investments are stated at fair value. The type of investments made by the District are restricted by state
law.
5.. Budgets and Budgetary Accounting
The Board of Directors of the District adopts an annual operating budget on or before March 31 for the
ensuing fiscal year. The Board of Directors may amend the budget by resolution during the fiscal year.
All appropriations lapse at the end of the fiscal year. The budget is presented on a basis consistent with
generally accepted accounting principles.
6. General Fixed Assets
Land, structures, improvements, and equipment purchased by the District are stated at cost in the General
Fixed Assets Account Group. Assets donated to the District are stated at their estimated fair market value
as of the date received. Depreciation is not recorded for fixed assets,
7, Long-term Debt
The principal portion of long-term debt is recorded as a liability in the General Long -Term Debt Account
Group.
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Midpeninsula Regional Open Space District
NOTES TO FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
7. Property Tax Levy, Collection and Maximum Rates
The State of California ("State") Constitution Article XIII A provides that the combined maximum
property tax rate on any given property may not exceed one percent of its assessed value unless an
additional amount for general obligation debt has been approved by voters. Assessed value is calculated at
100 percent of market value as defined by Article XIII A and may be increased by no more than two
percent per year unless the property is sold or transferred. The State Legislature has determined the
method of distribution of receipts from the one percent tax levy among the counties, cities, school
districts and other districts.
The District receives property tax revenues from Santa Clara and San Mateo Counties. The Counties
assess properties, bill for and collect property taxes as follows:
Secured Unsecured
Valuation dates March 1
Lien/Levy dates July 1
Due dates 50% on November 1
50% on February 1
Delinquent as of December 10 (for November)
April 10 (for February)
March 1
March 1
July 1
August 31
Property taxes are distributed to the District by the Counties following their collection.
Unsecured taxes are levied on personal property other than real estate, land and buildings. These taxes are
secured by liens on the property being taxed.
Property tax revenue is recognized in accordance with GASB Interpretation 5, Property Tax Revenue
Recognition in Governmental Funds, which states that such revenue he recorded when it becomes
measurable and available. Available means collected within the current period or expected to be collected
soon thereafter to be used to pay liabilities of the current period (not to exceed 60 days).
8. Compensated Absences
Vacation pay is recorded as an expenditure in the year earned. Sick leave is recorded as an expenditure
when paid.
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Midpeninsula Regional Open Space District
NOTES TO FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)
9. Use of Estimates
In preparing financial statements in conformity with generally accepted accounting principles,
management is required to make estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the -date of the financial statements, as
well as revenues and expenses during the reporting period. Actual results could differ from those
estimates.
10. Total (Memorandum Only)
The column in the financial statements captioned "Total (Memorandum Only)" is presented for purposes
of additional analysis and is not a required part of the basic financial statements. This information is not
comparable to a consolidation and does not present financial position in conformity with generally
accepted accounting principles.
NOTE B - CHANGE IN ACCOUNTING PRINCIPLES
Effective April 1, 1998, the District adopted Statement No. 27 of GASB, Accounting Standards for Pensions by
State and Local Governmental Employers, which applies to employers with fiscal years beginning after June 15,
1997. GASB Statement No. 27 sets forth the criteria for recognition and measurement of pension expense or
benefit and any related liability or asset related to the District's participation in the California Public
Employees Retirement Systems (CaIPERS). GASB Statement No. 27 also requires certain disclosures as
presented in Note H. Adoption of this principle had no impact on the District's fund balance.
Effective April 1, 1998, the District adopted Statement No. 32 of GASB, Accounting and Financial Reporting
for Internal Revenue Code Section 457 Deferred Compensation Plans ("Section 457 Plans'). This statement
requires employers to remove from the balance sheet, any assets and corresponding liabilities related to
Section 457 Plans once the plan assets are transferred to a trust which is for the exclusive benefit of
participants and their beneficiaries. The District did have in place such a trust held with ICMA Retirement
Corporation for the Section 457 Plan on April 1, 1998, in accordance with an August 20, 1996 change to the
Internal Revenue Code. Accordingly, the District has removed the plan assets and corresponding liability
from the balance sheet. This change in accounting has no impact on the District's fund balance.
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Midpeninsula Regional Open Space District
NOTES TO FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE C - CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of the following at March 31, 1999:
Deposits
Cash on hand - unrestricted
Cash in banks - restricted
Pooled Funds
Cash in Santa Clara County Treasury - unrestricted
Cash in Santa Clara County Treasury - restricted
19,663
8,562
23,195,461
1,739,630
Cash balances held in banks are insured up to $100,000 by the Federal Depository Insurance Corporation.
The Santa Clara County investment pool is subject to legal restrictions, and additional restrictions prescribed
by the County.
NOTE D - INVESTMENTS
The District maintains certain restricted investments for purposes of satisfying the future requirements of its
long-term debt. The District also maintains certain unrestricted investments that are held by Santa Clara
County. All investments held are U.S. Government securities with a maturity date of August 31, 1999. All
U.S. Government securities are insured or collateralized with securities held by the District or its agent in the
District's name. The total fair value of the investments is $3,401,754 at March 31, 1999, which approximates
their cost.
NOTE E — OPTION FOR LAND/LEASE
On March 10, 1999, the District entered into an Agreement for Option and Purchase of Real Property (an
"Agreement") and advanced $10,500,000 to the seller in connection with that agreement. The $10,500,000
advance represents consideration for the District's exclusive option to purchase 805 acres of land (referred to
as the "upper" portion of the property) for public open space. The District may exercise this option during a
five-year period conditioned upon the occurrence of various events, which include the seller receiving
approvals to develop adjoining property. The $10,500,000 also represents consideration for the District's
nine-year lease of the 805 acres for open space purposes. The $10,500,000 is secured by a promissory note and
deed of trust. The promissory note bears interest at 6% and matures on March 10, 2004 when the entire
$10,500,000 plus interest must be remitted to the District should the District not exercise its option or should
the seller decide to "unwind" the transaction. If the District exercises its option, $10,000,000 will remain
with the seller as it represents the purchase price of the 805 acres. $500,000 will remain with the seller as a
deposit on the lower portion described below. Should the seller develop the lower portion, the District may
receive development refunds as high as $11,000,000, depending on the development density.
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NOTES TO FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE E - OPTION FOR LAND/LEASE (continued)
The District also received an option to purchase the leasehold property and an additional 260 -acre adjacent
parcel known as the "lower" portion for an additional $14,500,000, for a total purchase price $25,000,000.
The initial option expired as of March 31, 1999 and was extended to June 30, 1999 with an additional
payment of $250,000. The $250,000 is not refundable, but will be applied toward the purchase of the
property, if the option is exercised early. If the District ultimately purchases the property, it will be
preserved in its natural condition and named the Bear Creek Open Space Preserve. The District had not
exercised its option as of March 31, 1999.
NOTE F - FIXED ASSETS
Changes in the General Fixed Assets Account Group for the year ended March 31, 1999, were as follows:
Land
Structures and improvements
Equipment
NOTE G - LONG-TERM DEBT
Balances
April 1,
1998
$ 162,417,029
8,104,227
1,682,504
$ 172,203,760
Additions
4,237,955
621,868
169,932
5,029,755
Retirements
89,256
$ 89,256
Balances
March 31,
1999
$ 166,654,984
8,726,095
1,763,180
$ 177,144,259
Long-term debt issued to acquire land, structures and improvements, and equipment is recorded in the
General Long -Term Debt Account Group. Changes in the account group for the year ended March 31, 1999
were as follows:
Long-term debt, April 1, 1998
Issuance of bonds payable
Principal reductions through refunding
Principal repayments
Long-term debt, March 31, 1999
$ 79,758,026
29,663,017
(7,345,000)
(2,002,055)
$103,073,988
The following is a detail of the long-term debt of the District as of March 31, 1999:
• Four notes payable aggregating debt of $700,770 bearing interest at fixed rates from 6% to 7% at March 31,
1999 and are collateralized by land.
• 1990 Notes, principal balance of $12,615,000, bearing interest at rates ranging from 6.50% to 7.50%,
maturing annually from September 1, 1995 through September 1, 2010.
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Midpeninsula Regional Open Space District
NOTES TO FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE G - LONG-TERM DEBT (continued)
• 1993 Certificates of Participation including Serial Certificates with a principal balance of $6,210,000,
bearing interest at rates ranging from 2.90% to 5.6%, maturing annually from September 1, 1994 through
September 1, 2009, This issue also includes $4,345,000 of 5.70% Term Certificates due on September 1,
2014 and $5,910,000 of 5.75% Term Certificates due on September 1, 2020.
• 1995 Notes, principal balance of $11,400,000, comprised of $1,255,000 of Serial Notes, bearing interest at
rates ranging from 5,75% to 7%, maturing annually from September 1, 1998 through September 1, 2009,
and $10,145,000 of 7% term notes due on September 1, 2014,
• 1996 Notes, principal balance of $29,230,201, including $18,095,000 of Current Interest Bonds, bearing
interest at rates ranging from 3,9% to 5.75% maturing annually from September 1, 1997 through
September 1, 2012. This issue also includes $4,900,000 of Current Interest Term Bonds, bearing interest at
5.9% due September 1, 2014 and $6,235,201 of Capital Appreciation Bonds, bearing interest at rates
ranging from 6.2% to 6.3%, maturing annually from September 1, 2015 through September 1, 2026,
• 1999 Revenue Bonds of $29,663,017, including $15,775,000 of Current Interest Bonds, bearing interest at
rates ranging from 3.7% to 4.6%, maturing annually from September 1, 2000 through September 1, 2014.
This issue also includes $13,888,017 Capital Appreciation Bonds, bearing interest at rates ranging from
5.2% to 5.4%, maturing annually from September 1, 2015 through September 1, 2030.
All notes are payable from limited ad valorem property taxes levied on all taxable property within the
District. The District has not pledged its full faith and credit or taxing power for payment of the notes nor
are the notes collateralized by any District property, except for the four notes totaling $770,770 described
above.
Maturities of long-term debt are as follows:
Year ending March 31, Principal Interest Total
2000 $ 1,848,213 $ 4,618,855 $ 6,467,068
2001 2,369,450 4,441,582 6,811,032
2002 2,601,789 4,306,956 6,908,745
2003 3,347,088 4,157,727 7,504,815
2004 3,113,226 3,961,349 7,074,575
Thereafter through 2030 86,794,222 45,997,128 132,791,350
$ 100,073,988 $ 67,483,597 $ 167,557,585
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Midpeninsula Regional Open Space District
NOTES TO FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE G - LONG-TERM DEBT (continued)
A portion of the net proceeds of the 1999 Revenue Bonds was used to advance refund $7,345,000 of
outstanding Promissory Notes originally issued in 1992. The advance refunding met the requirements of an
in substance debt defeasance. The Promissory notes were defeased by placing funds in irrevocable trusts to
provide for all future debt service payments on the old Promissory Notes. Accordingly, the trust account
assets and the liability for defeased Promissory Notes are not included in the District's financial statements.
The 1992 notes have been removed from the general long-term debt account group. The cash requirements
necessary to service the old debt of $10,967,050 as compared with those related to the new debt of
$19,041,509 result in an economic loss of $57,155. The primary purpose of the issuance of the 1999 Revenue
Bonds was to generate enough cash flow to fund current land acquisitions. The goal of the District is to
preserve as much open space property as possible. In order to finance the new acquisitions, refinancing part
of the old debt was necessary. Thus, the economic loss equates to the additional cost of financing.
NOTE H - EMPLOYEES' RETIREMENT PLAN
Plan Description - The District's defined benefit pension plan, Public Employee Retirement System (PERS)
provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan
members and beneficiaries. The PERS is part of the Miscellaneous portion of the California Public Employee
Retirement System (CalPERS), an agent multiple employer plan administered by CalPERS, which acts as a
common investment and administrative agent for participating public employers within the State of
California. A menu of benefit provisions as well as other requirements are established by State statutes
within the Public Employees' Retirement Law. The District selects optional benefit provisions from the
benefit menu by contract with CalPERS and adopts those benefits through District resolution. CalPERS
issues a separate comprehensive annual financial report. Copies of the CalPERS' annual financial report may
be obtained from the CaIPERS Executive Office - 400 P Street - Sacramento, CA 95814.
Funding Policy - Active plan members in the PERS are required to contribute 7% of their annual covered
salary. The District is required to contribute the actuarially determined remaining amounts necessary to fund
the benefits for its members. The actuarial methods and assumptions used are those adopted by the CaIPERS
Board of Administration. The required employer contribution rate for fiscal 1998/99 was 3.1%. The
contribution requirements of the plan are established by State statute and the employer contribution rate is
established and may be amended by CalPERS.
Annual Pension Cost - For fiscal year 1998/99, the District's annual pension cost was $338,599 and the
District actually contributed $338,599. The required contribution for fiscal year 1998/99 was determined as
part of the June 30, 1997 actuarial valuation using the entry age normal actuarial cost method with the
contributions determined as a percent of pay. The actuarial assumptions included (a) 8.25% investment rate
of return (net of administrative expenses); (b) projected salary increases that vary by duration of service; and
(c) 2% cost -of -living adjustment. Both (a) and (b) include an inflation component of 3.5%. The actuarial
value of the District's assets was determined using a technique that smoothes the effect of short-term volatility
in the market value of investments over a three year period. The District's unfunded actuarial excess assets is
being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization
period at June 30, 1997 was 17 years.
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NOTES TO FINANCIAL STATEMENTS (continued)
March 31, 1999
NOTE H - EMPLOYEES' RETIREMENT PLAN (continued)
Three -Year Trend Information for the Fund
Fiscal Year ending
6/30/97
6/30/98
6/30/99
Valuation
Date
6/30/95
6/30/96
6/30/97
Entry Age
Normal
Accrued
Liability
$ 3,749,211
4,715,902
5,078,750
$
Annual Percentage
Pension of APC
Cost (APC) _ Contributed
199,985
201,520
338,599
Required Supplementary Information
Funded Status of Plan
Actuarial
Value of
Assets
$ 3,936,485
4,705,140
5,676,800
Unfunded/
(Overfunded)
Liability
(187,274)
10,762
(598,050)
NOTE I - DEFERRED COMPENSATION PLAN
Funded
Ratio
100%
100%
100%
Annual
Covered
Payroll
105.0%
99.8%
111.8%
$ 2,530,402
2,361,398
2,41.3,032
Net
Pension
Obligation
UALL As a
To of Payroll
(7.401%)
0.456%
(24.784%)
In 1988, the District established a deferred compensation plan for its employees in accordance with California
Government Code Section 53212 and Internal Revenue Code Section 457. The plan, available to all District
employees, permits them to defer a portion of their salary until future years. The deferred compensation is
not available to employees until termination, retirement, death or unforeseeable emergency.
All amounts under the ICMA Retirement Corporation plan are held in trust and, as such, are not reflected on
the accompanying balance sheet as discussed in Note B.
NOTE J - LEASE REVENUE
The District leases certain land and structures to others under operating leases with terms generally on a
month -to -month basis. Lease revenue of $607,180 was received during the year ended March 31, 1999.
NOTE K - LITIGATION
The District is named in certain claims and litigation. In the opinion of management, after consultation with
counsel, the liability, if any, resulting therefrom will not have a, material effect on the District's financial
position.
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SUPPLEMENTARY INFORMATION
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San Jose, California
May 21, 1999
Report of Independent Certified Public Accountants
on Required Supplementary Information
Board of Directors
Midpeninsula Regional Open Space District
Our audit was conducted for the purpose of forming an opinion on the general-purpose financial statements taken
as a whole of the Midpeninsula Regional Open Space District ("District") as of and for the year ended March 31,
1999, which are presented in the preceding section of this report. The supplementary information on page 16 is not
a required part of the general-purpose financial statements, but is supplementary information required by the
Governmental Accounting Standards Board, We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and do not express an opinion on it. In
addition, we do not provide assurance that the District is or will become Year 2000 compliant, that the District's
Year 2000 remediation efforts will be successful in whole or in part, or that parties with which the District does
business are or will become Year 2000 compliant.
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YEAR 2000 SUPPLEMENTAL INFORMATION
Year ended March 31, 1999
Year 2000 Compliance Program
The District began addressing Y2K compliance in December 1998, by conducting an inventory of systems likely to be
impacted by potential Y2K issues, and determining key tasks which needed to be implemented in order to assure that all
systems would be compliant by the end of 1999. Following is a summary of tasks the District has either completed or is
in the process of completing to accomplish Year 2000 compliance:
1. Assurance that software programs and
vendors for mission critical functions (such
as payroll, accounting, etc.) are Y2K
compliant.
2. Determine that
workstation an.d
compliant.
operating systems on
server computers are
3. Determine that networking software is
Y2K compliant.
4. Determine that the District's standard
office suite is Y2K compliant.
5. Determine that other specialized software
programs are Y2K compliant.
6. Assurance that District's telephone system
is Y2K compliant.
Completed. Received certification that critical programs or vendors
are compliant: Timespan accounting software, CaIPERS reporting
systems, ICMA Retirement Corporation (deferred compensation
program), and AccuChex payroll system.
Completed. All computer workstations have been upgraded to
Windows 95, 98 or NT 4.0,and bios testing has been completed on
each machine.
To be completed by August 30 1999. LA.Ntastic 8.0 is Y2K
compliant, and is in the process of being installed on each
workstation and the server.
Completed. The District has standardized its office suite to
Microsoft Office 97, which is compliant, and loaded on all
workstations.
To be completed by August 30, 1999. Specialized software used in
Planning for mapping and graphics (Adobe Illustrator and ArcView
GIS software) is being assessed for compliance. Adobe Illustrator is
compliant.
Completed. The District upgraded its telephone system in July
1999 for Y2K compliance.
SUPPLIERS, SERVICE PROVIDERS AND
EQUIPMENT, AND ENVIRONMENTAL
OPERATIONS
Evaluate potential for impact from external
providers' systems (banks, vendors, utility
providers, etc.) and internal equipment
(HVAC, security, fire alarm systems, etc.)
To be completed by September 30, 1999. District has formed a
Y2K Assessment Committee, which is presently meeting with
various program groups for input on potential external and internal
impacts. Once impacts are evaluated, compliance assurance will be
delegated to appropriate staff, with compliance deadline of
September 30, 1999. Upon completion of compliance, the
Committee will issue detailed guidelines for staff on Y2K
compliance issues both departmentally and District -wide, including
a checklist for year-end procedures to assure a smooth transition
from December 31, 1999, to January 1, 2000,
Midpeninsula Regional Open Space District does not assert that it will be Y2K compliant with regard to computer
systems and other electronic equipment, only that work is either completed or in process.
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