Loading...
HomeMy Public PortalAboutAudit Report - District- FY77MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FINANCIAL STATEMENTS with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS YEAR ENDED JUNE 30, 1977 ELMER FOX, WESTHEIMER & CO. CERTIFIED PUBLIC ACCOUNTANTS MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BOARD OF DIRECTORS Position President Daniel Wendin Vice -President Harry Turner Secretary Barbara Green Treasurer Nonette Hanko Member Richard Bishop Member Katherine' Duffy Member Edward Shelley ADMINISTRATION General Manager Assistant General Manager Controller Herbert Grench Jon Olson John Melton CONTENTS Report of Certified Public Accountants Page 1 Financial statements: Balance sheet 2 Statement of revenue 3 Statement of expenditures 4 Statement of long-term indebtedness transactions 5 Statement of changes in fund balance 5 Notes tofinancial statements 6 ELMER FOX, WESTHE!MER & 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 balance sheet of Midpeninsula Regional Open Space District as of June 30, 1977 and the related statements of revenue, expenditures, long-term indebtedness transactions, and changes in fund balances for the year then ended. 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 designated above present fairly the financial position of Midpeninsula Regional Open Space District at June 30, 1977 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 preceeding year. U4 -.iv 6T -y, tve-4/44A-s. 5 60. Oakland, California August 4, 1977 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT SUMMARY OF ASSETS, OTHER DEBITS, LIABILITIES AND FUND BALANCES ALL FUNDS AND ACCOUNT GROUPS COMBINED June 30, 1978 ASSETS AND OTHER DEBITS Assets: Cash - unrestricted Cash - restricted by the Board of Directors Interest and other receivables Prepaid expenses and deposits Land, at cost Structures and improvements, at cost Equipment, at cost Other debits: Amount to be provided for retirement of long-term debt (a portion of this is funded in restricted cash) LIABILITIES AND FUND BALANCES $ 277,756 7,600,000 104,665 8,552 11,239,714 111,962 163,472 19,506,121 7,592,782 S27,098,903 Liabilities: Accounts payable and accrued expenses $ 81,471 Notes payable 7,592,782 7,674,253 Fund balances: Designated for obligations and commitments 7,600,000 Invested in general fixed assets 11,515,148 Undesignated 309,502 S27,098.903 SUMMARY OF SOURCES AND USES OF FINANCIAL RESOURCES ALL FUNDS COMBINED Year ended June 30, 1978 Sources of financial resources: Revenues: General property taxes $3,321,789 Gift 609,265 Interest 394,243 Homeowner's property tax relief 189,406 Business inventory property tax relief 112,319 Federal and State grants 40,196 Miscellaneous 27,339 $ 4,694,557 Other sources: Proceeds of issuance of long-term debt 6,200,000 10,894,557 Uses of financial resources: Expenditures: Salaries and employee benefits 354,100 Services and supplies 232,124 Purchase of property and equipment 3,888,129 Principal and interest payments on notes payable 858,994 Excess of sources over uses 5,333,347 S 5.561.210 The accompanying Summary of Assets, Other Debits, Liabilities and Fund Balances of the Midpeninsula Regional Open Space District as of June 30, 1978 and the Summary' of Sources and Uses of Financial Resources for the year then ended have been con- densed from the annual financial report which has been audited by independent certified public accountants and which is on file at the District's office, 745 Distel Circle, Los Altos, California, 94022. MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BALANCE SHEET - ALL FUNDS June. 30, 1977 Investment General General in general long-term fund fixed assets debt ASSETS AND OTHER DEBITS Cash: Wells Fargo Bank $ 28,437 $ - $ Union Bank 9,995 Deposited with County of Santa Clara 2,356,156 - - Petty cash 200 - - 2,394,788 Interest receivable 32,016 - Prepaid expenses and deposits 5,476 - - Land - 7,473,390' - Structures and improvements ,.61,067 - Equipment - 92,562 Future note repayment requirements - 2,021,630 $2,432,280 $7,627,019 $2,021,630 LIABILITIES, RESERVE AND FUND BALANCES Liabilities: Accounts payable $ 41,027 $ - $ - Security deposit 15,000 - Accrued salaries and benefits 9,098 - - Accrued interest 57,175 - Notes payable - - 2,021,630 122,300 - 2,021,630 Commitments Reserve and fund balances: Reserve for encumbrances Investment in general fixed assets Fund balance 200,941 2,109,039 $2,432,280 7,627,019 $7,627,019 $2,021,630 The accompanying notes are an integral part of the financial statements. 2 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF REVENUE - GENERAL FUND Year ended June 30, 1977 General property taxes $2,059,359 Aid from other governmental agencies: Homeowner's property tax relief 126,873 Business inventory property tax relief 95,445 Federal grant 98,097 State grant (California) 124,038 Other 80 444,533 Revenue from use of money and property: Interest Rents 118,432 3,789 122,221 Other revenues: Gifts 4,300 Miscellaneous 95 4,395 $2,630,508 The accompanyingnotes are an integral part of the financial statements. 3 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF EXPENDITURES - GENERAL FUND Year ended June 30, 1977 Salaries, wages and employee benefits: Salaries $ 214,754 Retirement 17,666 Employee group insurance 14,809 Educational assistance 347 247,576 Services and supplies: Professional and specialized services Printing and duplicating Auto expense Election expense Maintenance and repair Office and equipment rents Acquisition services and expenses Telephone and postage Directors' fees Field equipment and supplies Office supplies and equipment Conferences and meetings 70,607 18,975 16,139 13,879 13,794 13,698 13,078 9,769 7,750 7,665 7,504 5,799 Insurance 3,967 Advertising 3,965 Dues and subscriptions 2,564 Site operations and maintenance 2,186 211,339 Notes payable: Principal paid 46,560 Interest paid and accrued 85,387 131,947 Fixed assets: Investment in land and improvements Investment in equipment 999,574 40,278 1,039,852 $1,630,714 The accompanying notes are an integral part of the financial statements. 4 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF LONG-TERM INDEBTEDNESS TRANSACTIONS Year ended June 30, 1977 Long-term indebtedness, July 1, 1976 $ 449,040 Incurred 1,619,150 Retired (46,560) Long-term indebtedness, June 30, 1977 $2,021,630 STATEMENT OF CHANGES IN FUND BALANCE Year ended June 30, 1977 Investment General in general fund fixed assets Balance at June 30, 1976 Add: Encumbrances at June 30, 1976 26,248 Fixed assets acquired: Through long-term indebtedness Through current expenditures Excess of revenue over expenditures: Revenue 2,630,508 Expenditures 1,630,714 999,794 Deduct: Encumbrances at June 30, 1977 200,941 Balance at June 30, 1977 $2,109,039 The accompanying notes are an integral part of the financial statements. $1,283,938 $4,968,017 1,619,150 1,039,852 2,659,002 $7,627,019 5 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS June 30, 1977 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 as prescribed for special districts by the State Controller. The following separate self -balancing funds or groups of accounts are included in the financial statements, all reflecting the accrual basis of accounting. (a) General fund - To account for all income and expenditures not reflected elsewhere. (b) General long-term debt - To provide a group of accounts to reflect the long-term debt outstanding. ) General fixed assets - To provide a group of accounts to maintain 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 District reflects amounts appropriated from existing fund balance as a reserve for encumbrances at each year end. Expenditures relating to these encumbrances are reflected in the year expended. 2. 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. 6 3. 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 1976 - 1977 totaled $17,666. Pension benefits are funded as accrued. Notes payable The District has acquired land through the issuance of long-term debt. Notes payable at June 30, 1977 consist of the following: 6.50% note payable at $12,500 plus interest annually through November 3, 1985 6.50% note payable at $17,500 plus interest annually through November 3, 1985 6.50% note payable at $16,560 plus interest annually through July 31, 1984 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, 1978 $ :112,500 157,500 132,480 268,650 355,000 600,000 395,500 $2,021,630 The District intends to call for redemption $1,619,150 of the above notes to be paid from the issuance of negotiable promissory notes described in Note 7. Encumbrances Encumbrances at June 30, 1977 consist of the following: Note payment including interest on July 31, 1977 Note payment including interest on August 15, 1977 Interest payment on note payable on August 31, 1977 $ 17,278 180,159 3,504 $200,941 7 6. Commitments The District has contracted for office space in Los Altos, California for a period of five years, which commenced October 1, 1973. The lease may be terminated at. the option of the District each September 30th. Rent is payable as follows: Year ending June 30, 1978 Year ending June 30, 1979 $7,632 1,908 $9,540 7. Issuance of negotiable promissory notes The District issued $4,600,000 principal amount of negotiable promissory notes, Series A, in July 1977. The notes represent the first series in a total authorization of $10,000,000. 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. Note proceeds of the Midpeninsula Regional Open Space District will be utilized primarily for acquisition of land for open space purposes and for redemption of existing District notes sold to finance other land purchases. 8 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BALANCE SHEET - ALL FUNDS Twelve Months 6/30/77 ASSETS AND OTHER DEBITS Investment General. General in general long-term fund fixed assets debt Cash: Wells Fargo and Union Banks $ 19,663 Deposited with County of Santa Clara 2,356,156 Petty Cash 200 $2,376,019 Accounts receivable - Interest receivable. 32,016 Prepaid expenses and deposits 5,476 Land and improvements - Equipment - Future note repayment requirements -. 7,521,327-' 92,562 2,021.,630 $2,413,511 $7,613,889 - $2,021,630 LIABILITIES,RESERVE AND FUND BALANCES Liabilities: Accounts Payable Accrued -Salaries & Benefits Security Deposit Payable Notes; Payable Reserve and fund balances: Reserve for encumbrances Investment in general. fixed assets Fund balance 22,260 9,098 15,000 46,358 2,367,153 $2,413,511 7,613,889 $7,613,889 2,021,630 $2,021,630 $2,021,630 1 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF REVENUE -,GENERAL FUND Twelve Months 6/30/77 General property taxes Aid from other governmental agencies: Homeowner's property tax relief Business inventory property tax relief Other Federal grant State grant Revenue from use of money and property: Interest Rents $2,059,359 126,873 95,445 80 98,097 124,038 444,533 118,432 3,789 122,221 Other revenues: Gifts 4,300 Miscellaneous 95 4,395 $2,630,508 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF EXPENDITURES.- GENERAL FUND Twelve Months 6/30/77 Salaries, wages and employee benefits: Salaries $ 214,754 Retirement 17,666 Employee group insurance 14,809 Educational assistance 347 247,576 Services and supplies: Professional and specialized services 75,718 Election expense 13,879 Printing and duplicating 18,975 Office Rent 8,993 Directors' fees 7,750 Office supplies and equipment 7,504 Auto expense 16,139 Telephone and postage 9,.769 Dues and subscriptions 2,564 Field equipment and supplies 12,370 Conferences and meetings 5,799 Insurance 3,967 Site operations and maintenance 35,452 Acquisition expenses 1,078 Advertising 3,965 Maintenance and repair 548 $224,470 Payments on notes payable: Principal Interest Fixed assets: Investment in land and improvements Investment in equipment 46,560 28,213 74,773 986,444 40,278 1,026,722 $1,573,541 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF LONG-TERM INDEBTEDNESS TRANSACTIONS Twelve Months 6/30/77 Long-term indebtedness, July 1, 1976. Incurred Retired Long-term indebtedness, June 30, 1977 $ 449,040 1,619,150 (46,560) $2,021,630 STATEMENT OF CHANGES IN FUND BALANCES Twelve Months 6/30/77 General fund Balance at June 30, 1976 $1,283,938 Add: Encumbrances at June 30,1976 Fixed assets acquired: Through long -+term indebtedness Through current expenditures A41 Excess of revenue over expenditures Revenue Expenditures Balance at June 30, 1977 26,248 2,630,508 1,573,541 1,056,967 Investment in general fixed assets $4,968,017 1,619,150 1,026,722 2,645,872