HomeMy Public PortalAboutAudit Report - District- FY78MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
FINANCIAL STATEMENTS
with
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 1978
ELMER FOX,WESTHEIMER & CO.
CERTIFIED PUBLIC ACCOUNTANTS
Y
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
BOARD OF DIRECTORS
Position
President Harry A. Turner
Vice -President Katherine Duffy
Secretary Richard S. Bishop
Treasurer Barbara Green
Member Nonette G. Hanko
Member Edward G. Shelley
Member Daniel G. Wendin
ADMINISTRATION
General Manager ā¢ Herbert A. Grench
Land Manager/Assistant General Manager Jon H. Olson
Controller Mike Foster
or
r
CONTENTS
Page
Report of Certified Public Accountants 1
Financial statements: 2
Combined balance sheet - all funds and account groups
Combined statement of revenues, expenditures and changes
in fund balances - all funds 3
Statement of revenues, expenditures and changes in fund 4
balance - budget and actual, general fund 5
Statement of long-term indebtedness transactions
Statement of changes in general fixed assets 5 S
Notes to financial statements
ELMER FOX, WESTHEIMER & CO,
CERTIFIED PUBLIC ACCOUNTANTS
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
Midpeninsula Regional Open Space District
Los Altos, California
We have examined the financial statements of the various funds
and account groups of Midpeninsula Regional Open Space District as of
June 30, 1978 and for the year then ended as listed in the preceding
table of contents. Our examination was made in accordance with generally
accepted auditing standards and accordingly, included such tests of the
accounting records and such other auditing procedures as we considered
necessary in the circumstances.
In our opinion, the financial statements listed in the preceding
table of contents present fairly the financial position of Midpeninsula
Regional Open Space District at June 30, 1978 and the results of its
operations and changes in fund balances for the year then ended, in
conformity with generally accepted accounting principles applied on a
basis consistent with that of the preceding year after giving retroactive
effect to the changes in accounting discussed in Note 2, with which we
concur.
atA^faJ Fr c k/ 5 es,
Oakland, California
August 5, 1978
,
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
COMBINED BALANCE SHEET
ALL FUNDS AND ACCOUNT GROUPS
June 30, 1978
Government Funds
Property Debt
General Acquisition Service
Fund Fund Fund
ASSETS AND OTHER DEBITS
Cash - unrestricted $ 277,756 $ - $ -
Cash - restricted by the board of
directors 5,181,608 1,061,530 1,356,86
Interest receivable 101,093 - -
Accounts receivable 3,572 - -
Prepaid expenses and deposits 8,552 - -
Land - - -
Structures and improvements - - -
Equipment - - _
Amount to be provided (including
amounts available in general fund
restricted cash) for retirement
of general long-term debt - - -
$5,572,581 $1,061,530 $1,356,86
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 74,896 $ - $ _
Accrued salaries and benefits 6,575 - -
Notes payable - - -
Series "A" promissory notes payable - - -
81,471
Fund balance:
Designated ^for obligations and
commitments 5,181,608
Investment in general fixed assets -
Undesignated 309,502
5,491,110
$5.572.581
1,061,530
1,061,530
$1,061,530
The accompanying notes are an integral
part of the financial statements.
1,356,86
1,356,86
$1,356.86
2
.
Account Groups
General General
Fixed Long-term
Assets Debt
$ - $
11,239,714
111,962
163,472
2
2
$11,515,148
11,515,148
11,515,148
$11,515,148
7,592,782
$7,592,782
2,992,782
4,600,000
7,592,782
$7,592,782
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
ALL FUNDS
Year ended June 30, 1978
Sources of financial resources
Revenues:
General property taxes
Aid from other governmental agencies:
Homeowner's property tax relief
Business inventory property tax relief
Federal grant
State grant (California)
Interest
Rents
Gifts
Miscellaneous
Total revenues
Other sources:
Proceeds of long-term debt
Transfer from general fund
Transfer from property acquisition fund
Total sources of financial
resources
Uses of financial resources
Expenditures:
Salaries, wages and employee benefits
Services and supplies
Fixed assets:
Investment in land and improvements
Equipment purchases
Debt service:
Principal payment
Interest
Total expenditures
Other uses:
Transfer to property acquisition fund
Transfer to debt service fund
Transfer to general fund
Transfer to debt service fund
General
Fund
$3,321,789
189,406
112,319
26,414
394,243
7,551
9,265
925
4,061,912
513,782
4,575,694
354,100.ā
232,124 ā
70,910
Property
Acquisition
Fund
13,782
600,000
613,782
Debt
Service
Fund
4,580,850 1,619,150
517,899 276,706
- 320,000
5,712,531 2,215,856
3,817,219
657,134 3,817,219
517,899
276,706
513,782
320,000
628,848
230,146
858,994
Total uses of financial
resources 1,451,739 4,651,001 858,994
Net increase in fund balance during the year 3,123,955 1,061,530 1,356,862
Fund balance at beginning of year 2,367,155
Fund balance at end of year $5.491,110 $1.061,530 $1.356,862
The accompanying notes are an integral
part of the financial statements.
3
STATEMENT OF REVENUES, EXPENDITURES AND
FUND BALANCE - BUDGET AND ACTUAL
GENERAL FUND
Year ended June 30, 1978 Over (under)
Budget Actual budget
Sources of financial resources
Revenues: $3,245,300 $3,321,789 $ 76,489
General property taxes
Aid from other governmental agencies: 189,406 9,10
6
Homeowner's property tax relief 180,300 119 316 (9,106)
Business inventory property tax relief 115,800 26,414 (3,484
Federal grant - 180,000 394,243 214,243
Interest 10,500 7,551 (2,949)
Rents - 9,265 9,265
Gifts 925 925
Miscellaneous
Total revenues $3.731.900 4,061,912 $330.012
Other sources: 513,782
Transfer from property acquisition fund
Total sources of financial resources
4,575,694
Uses of financial resources
Expenditures: $ 301,400 307,262 $ 5,862
Salaries 68,100 46,838 (21,262)
Employee benefits
369,500 354,100 (15,400)
Professional and specialized services 96,200 90,460 (5,740)
Printing and duplicating 19,100 18,202 2(444)
898)
23,700 21,256 ,
Auto expense 23 600 22,542 (1,058)
Site operations, maintenance and repair 17 100 22,009 4,909
Office and equipment rents 10,300 12,270 1,970
Telephone and postage 5,600 9,267 3,667
Field equipment and supplies 12,600 7,700 (4,900)
Director's fees 5,600 5,673 73
Office supplies and equipment 10,300 6,617 (3,683)
Conferences and meetings 6,000 6,335 335
Insurance 3,000 6,217 3,217
Utilities 3,600 2,729 (871.)
Dues and subscriptions 5,000 847 (4,153)
Advertising 2,400 - (2,400)
Miscellaneous
244,100 232,124 (11,976)
Equipment purchases
70,700 70,910 210
Total expenditures $ 684.300 657,134 S(274166)
Other uses:
Transfer to property acquisition fund
Transfer to debt service fund
Total uses of financial resources
Net increase in fund balance during the year
Fund balance at beginning of year
Fund balance at end of year
The accompanying notes are an integral
part of the financial statements.
517,899
276,706
1,451,739
3,123,955
2,367,155
S5,491.110
4
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
STATEMENT OF LONG-TERM INDEBTEDNESS TRANSACTIONS
Year ended June 30, 1978
Long-t
erm indebtedness, June 30, 1977 $2,021,630
Incurred: 4,600,000
Negotiable promissory notes issued for cash 1,600,000
Notes issued in connection with purchase of land 600,000)
Retired
Long-t
erm indebtedness, June 30, 1978 $7,592,782
STATEMENT OF CHANGES IN GENERAL FIXED ASSETS
Year ended June 30, 1978
Balance Balance
July 1, 1977 Additions June 30, 1978
Land $7,473,390 $3,766,324 $11,239,714
Structures and improvements 61,067 50,895 111,962
Equipment 92,562 70,910 163,472
Total $7,627,019 $3,888,129 $11,515,148
Sources of additions:
General fund purchases
Property acquisition fund:
Purchased $3,217,219
Acquired by gift 600,000
$ 70,910
3,817,219
$3,888,129
The accompanying notes are an integral
part of the financial statements.
5
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT .
NOTES TO FINANCIAL STATEMENTS
June 30, 1978
1.
Summary of accounting policies
The Midpeninsula Regional Open Space District was formed 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.
The District utilizes the principles of fund accounting normally
used by governmental agencies. The following separate self -balancing funds
or groups of accounts are included in the financial statements:
a) General fund - To account for all revenue and expenditures not
reflected elsewhere.
b) Property acquisition fund
for the accumulation of
use in, the acquisition
- A capital projects fund to account
financial resources for, and their
of land and improvements.
c) Debt service fund - To account for the accumulation of resources
for and in payment of principal and interest on general long-
term debt.
d) General long-term debt - To provide a group of accounts to
reflect the long-term debt outstanding.
e) General fixed assets - To provide a group of accounts to main-
tain a continuous, cumulative record of property and equipment
owned by the District. All assets purchased by the District
are recorded at cost; assets acquired by gift are recorded
at appraisal value at the date of gift.
Under this method of accounting, the District, in common with most
government agencies, does not provide for depreciation.
The accrual basis of accounting is followed by the property acquisi-
tion fund. The general fund and debt service fund utilize the modified
accrual basis. Modifications in such method are as follows:
a) Revenues are generally recognized in the period received.
b) Interest on long-term debt is recognized as an expenditure when
payment is due.
6
2. Change in accounting
In prior years, land acquisitions and debt services transactions
were reported in the District's general fund. The accompanying financial
statements for the year ending June 30, 1978 reflect these transactions in
land acquisition and debt service funds respectively, as discussed in Note 1.
This change had no effect on fund balance as previously reported at June 30,
1977.
Also, in prior years, the District utilized the following practices
which have been discontinued:
a) Accounting for encumbrances (unfulfilled puichase and other
commitments for which liabilities have not yet been
incurred).
b) Accruing interest on long-term debt prior to the due date of
payment.
The retroactive effect of these changes on fund balance of the general fund
is as follows:
Fund balance, June 30, 1977:
As originally reported $2,109,039
Eliminate reserve for encumbrances 200,941
Eliminate accrued interest 57,175
As restated $2.367.155
3. Cash deposited with County of Santa Clara
The District entrusts its cash not required for current expendi-
tures with the County of Santa Clara. The County Treasurer invests such
funds and pays the District its share of interest earned.
4. Restricted cash - special fund reserve
As a result of the passage of Proposition 13 in the June, 1978
election, the District is faced with a major reduction in future revenue
from property taxes. The Board of Directors determined that the District
has contractual obligations for notes sold and land purchased in addition
to committed expenditures for projects anticipated to be consumated in the
1978-79 year; as a result, on June 28, 1978, the Board established a special
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4. Restricted cash - special fund reserve (continued)
funded reserve for the discharge of obligations and completion of committed
projects, in the amount of $7,600,000. Cash in this amount is shown as
restricted in the accompanying combined balance sheet as follows:
General fund
Property acquisition fund
Debt service fund
In addition, fund balances of these funds
these obligations and commitments.
Certain additions
$5,181,608
1,061,530
1,356,862
$7.600.000
are shown as designated for
to the reserve for interest and other required
expenditures will have to be obtained from future revenue.
5. Notes payable
The District has acquired land through the issuance of long-term
debt. Principal balances at June 30, 1978 are as follows:
6.50% note
annually
6.50% note
annually
6.50% note
annually
5.90% note payable at $53,730 plus interest
annually through December 10, 1981
5.90% note payable at $71,000 plus interest
annually through December 15, 1981
5.75% note payable at $120,000 plus interest
annually through December 10, 1981
5.50% note payable, interest due semi-annually
beginning August 31, 1977, principal payable
in full on January 31, 1979
6.00% note payable at $160,000 plus interest
annually through December 2, 1987
payable
through
payable
through
payable
through
at $12,500 plus interest
November 3, 1985
at $17,500 plus interest
November 3, 1985
at $16,560 plus interest
July 31, 1984
8
$ 100,000
140,000
115,920
201,488
88,750
450,000
296,624
1,600,000
$2.992,782
iā¢
5. Notes able (continued)
Promissory notes, Series A, were issued in July 1977. Interest
rates range from 4-1/2 to 6-1/2%, payable semi-annually commencing January 15,
1978. Principal in the amount of $460,000 will mature and become payable on
July 15th of each year commencing July 15, 1978 and terminating July 15,
1987. The notes are not subject to call or redemption prior to their stated
maturity dates.
Balance of Series A notes payable June 30, 1978 $4.600.000
6. Commitments
The District has contracted for office space in Los Altos,
California for a period of three years, commencing November 1, 1977, with
an option to renew for five years at an increased rate. Rent is payable
as follows:
Year ending June 30, 1979
Year ending June 30, 1980
Year ending June 30, 1981
$ 24,804
24,804
8,268
S 57.876
7. Retirement plan
The District has elected to be covered under the Public Employee's
Retirement System administered by the State of California. The District
manager is also covered by the retirement plan of the National Recreation
and Park Association. Contributions to both plans for 1977-1978 totaled
$21,447. Pension benefits are funded as accrued.
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