HomeMy Public PortalAboutAudit Report - District- FY85Deloitte
Haskins+Sells
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Financial Statments for the Year Ended
June 30, 1985 and Auditors' Opinion
Deloitte
Haskins Sells
Suite 1200
One Almaden Boulevard
San Jose, California 95113
(408) 998-4000
Telex: 346375
AUDITORS' OPINION
Board of Directors,
Midpeninsula Regional Open Space District:
We have examined the balance sheet of Midpeninsula Regional
Open Space District as of June 30, 1985 and the related
statement of revenues, expenditures and changes in fund
balance - budget and actual - of the general fund for the
year then ended. Our examination was made in accordance
with generally accepted auditing standards and, accord-
ingly, included such tests of the accounting records and
such other auditing procedures as we considered necessary
in the circumstances.
In our opinion, such financial statements present fairly
the financial position of Midpeninsula Regional Open Space
District as of June 30, 1985 and the results of its
operations and changes in its fund balance for the year
then ended, in conformity with generally accepted
accounting principles applied on a basis consistent with
that of the preceding year.
August 15, 1985
MIDPE NINSUL A REGIONAL OPEN SPACE DISTRICT
BALANCE SHEET, JUNE 30, 1985
ACCOUNT GROUPS
Gene ral T otal
General Fix ed Gen eral ( Memorandum
F und Assets Long -Term Debt Only)
ASSETS AND OTHER DEBIT BALANCES
Cash - interest bearing d eposits
and s hort-term inv estm ent s
Restricted cash
Investment in bonds (at co st)
Interest and other receivabl es
Prepaid expen ditures and deposit s
L and
Equipment
Structure s an d improvements
Amount to be provided for retirement
of gen eral long-term debt
TOTAL
LIABILITIES A ND FUND EQUITY
Liabilitie s:
Accounts payable
Accru ed liabilities
Lo ng-term debt
Total liabilities
Fund Equity:
Inve stment in ge neral fixed a sse ts
Fund balan ce
Total fund equity
TOTAL
See notes to financ ia l sta tements.
$7,230,548
1,082,900
173,400
481 ,678
28,067
$57,276,706
310,795
378,112
$ 7,230,548
1,082,900
173,400
481,678
28,067
57,276,706
310,795
378,112
$17,576,292 17,576,292
$8,996 ,593 $57 ,965,613 $17,576,292 $84,538 ,498
$ 125,182
75,378
200,560
$17,576,292
17,57,292
$ 125,182
75,378
17,576 292
17,77652
$57,965,613 57,965,613
013
8 796 033
8,796,033 57,965,613 66,761,646
$8 996,593 $57,965,613 $17 .576 ,292 $84 538,498
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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 JUNE 30, 1985
Budget
Variance
Favorable
Actual (Unfavorable)
REVENUES:
General property tax $ 5,589,000 $ 5,584,192 $ (4,808)
State and Federal grants 1,429,000 993,046 (435,954)
Other taxes 478,000 463,296 (14,704)
Interest 550,000 674,973 124,973
Gifts 500,000 1,791,727 1,291,727
Other 264,900 267,270 2,370
Total 8,810,900 9,774,504 963,604
EXPENDITURES:
Salaries and benefits 1,025,650 1,017,525 8,125
Professional services 155,400 205,679 (50,279)
Automobile expenses 62,300 55,297 7,003
Rent 47,450 42,665 4,785
Site supplies and services 61,800 65,520 (3,720)
Utilities and communications 34,750 32,613 2,137
Other 151,150 105,612 45,538
Property acquisition 7,905,200 5,675,328 2,229,872
Debt service:
Principal retirement 3,131,592 3,089,989 41,603
Interest and note issuance
costs 1,291,134 1,360,346 (69,212)
Total 13,866,426 11,650,574 2,215,852
EXPENDITURES OVER REVENUES (5,055,526) (1,876,070) 3,179,456
OTHER FINANCING SOURCES -
Proceeds from issuance
of long-term debt
1,925,000 4,095,000 2,170,000
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES (3,130,526) 2,218,930 5,349,456
FUND BALANCE, JULY 1, 1984 6,577,103 6,577,103
FUND BALANCE, JUNE 30, 1985 $ 3,446.577 $ 8,796.033 $5.349,456
See notes to financial statements.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization - The Midpeninsula Regional Open Space
District (District) was formed in 1972 to acquire and
preserve land and open space in the northern and western
portions of Santa Clara County. In June 1976, the southern
portion of San Mateo County was annexed to the District.
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 available and measurable, and
expenditures are recognized generally when the obligation
is incurred except for interest on long-term debt which is
recognized as an expenditure when due.
General fixed assets - Land, equipment, structures and
improvements purchased by the District are stated at cost
in the general fixed asset group of accounts. 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.
Long-term debt - The principal portion of long-term debt is
recorded as a liability in the general long-term debt
account group.
2. FIXED ASSETS
The changes in
the year ended
Land
Equipment
Structures and
improvements
Total
the general fixed
June 30, 1985 are
Balance
July 1, 1984
$51,688,461
283,784
331,737
$52,303,982
assets account
as follows:
group for
Additions
(net of Balance
retirements) June 30, 1985
$5,588,245 $57,276,706
27,011 310,795
46,375 378,112
$5,661,631 $57,965,613
All fixed asset additions during fiscal 1985 were acquired
through general fund expenditures.
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3. LONG-TERM DEBT
Long-term debt issued to acquire land, equipment,
structures and improvements is recorded in the general
long-term debt account group. The changes in the account
group for the year ended June 30, 1985 are as follows:
Long-term debt, July 1, 1984
Proceeds from issuance of notes payable
Principal retirements
$16,571,281
4,095,000
(3,089,989)
Long-term debt, June 30, 1985 $17.576,292
Long-term debt bears interest at rates from 6% to 11%. The
weighted average interest rate of debt outstanding at
June 30, 1985 is 7.84%. Maturities of long-term debt
principal are as follows:
Year Ending June 30: Principal
1986
1987
1988
1989
1990
Thereafter (through 2001)
$ 3,280,502
2,926,569
2,600,970
1,741,501
1,520,743
5,506,007
Total $17,576,292
Land with a cost of approximately $14,600,000 is pledged as
collateral for the long-term debt.
Cash of $1,082,900 is restricted by the terms of certain
notes. Interest earned may be withdrawn and used by the
District.
4. LEASE OBLIGATIONS
Office facilities are leased under an operating lease
expiring in fiscal 1986. Minimum annual rental is $13,416
for fiscal 1986.
5. RETIREMENT PLAN
District employees are covered under the Public Employees
Retirement System administered by the State of California.
The District manager is covered by the National Recreation
and Park Association Retirement Plan. Contributions to
both plans for fiscal 1985 totaled $75,783. Pension
benefits are funded as accrued. The actuarially computed
value of vested benefits and plan assets applicable to
District employees is not available.
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6. LEASE REVENUES
The District leases certain land and structures under
operating leases with terms varying from one to eighteen
years. In addition, in connection with the acquisition of
the Skyline Open Space Preserve in fiscal 1982, the
District leased back to the sellers for their lifetimes
(maximum term of 50 years) the structures comprising a
ranch compound.
Lease revenue received was approximately $211,000 in fiscal
1985. Future minimum lease revenues are not expected to be
significant.
7. GIFTS
During fiscal 1985 the District received gifts and project
contributions as follows:
Town of Los Gatos
Peninsula Open Space Trust
$1,691,727
100,000
Total $1.791,727
The funds were used to acquire specific property parcels.
8. LITIGATION
The District is named in certain claims and litigation.
Although the liability with respect to these claims and
litigation is not determinable at the present time, it is
the opinion of management, after consultation with counsel,
that the liability, if any, resulting therefrom will not
have a material effect on the District's financial position.
9. SUBSEQUENT EVENT
In August 1985 the District entered into an agreement to
acquire approximately 600 acres of land for cash of
$1,147,500 and promissory notes of $2,527,500.
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