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