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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 C C 0 C 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. 3 C C C 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. - 4 C 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. 5 C: C CC 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. - 6 c C