HomeMy Public PortalAboutAudit Report - District- FY82Deloitte
Haskins+Sells
MIDPENINSULA REGIONAL OPEN
SPACE DISTRICT
FINANCIAL STATEMENTS FOR THE
YEAR ENDED JUNE 30, 1 982 AND
AUDITORS' OPINION
Deloitte
Haskins+Seils
Suite 1200
One Almaden Boulevard
San Jose, California 95113
(408)998-4000
Cable DEHANDS
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, 1982 and the
related statement of revenue, expenditures and changes in
fund balance - budget and actual of the general fund for
the year then ended. Our examination was made in accor-
dance 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 referred to above
present fairly the financial position of Midpeninsula
Regional Open Space District as of June 30, 1982 and the
results of its operations for the year then ended, in
conformity with generally accepted accounting principles
applied on a basis consistent with that of the preceding
year.
August 31, 1982
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
BALANCE SHEET
JUNE 30, 1982
ACCOUNT GROUPS
General Total
General Fixed General (Memorandum
Fund Assets Long Term Debt Only)
ASSETS AND OTHER DEBIT BALANCES
Cash (including interest bearing deposits
and short-term investments
of $7,207,216) $7,213,764 $7,213,764
Interest and other receivables 178,887 178,887
Prepaid expenditures and deposits 54,210 54,210
Land $31,025,245 31,025,245
Equipment 229,189 229,189.
Structures and improvements 211,367 211,367
Amount to be provided for retirement
of general long-term debt $8,828,213 8,828,213
TOTAL $7,446,861 $31,465,801 $8,828,213 347,740,875
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
Accrued liabilities
Advance from Town of Los Gatos
Deposits
Notes payable
Series A promissory notes
Total liabilities
Fund Equity:
Investment in general fixed assets
Fund balances:
Designated for debt service and
property acquisition
Undesignated
Total fund equity
TOTAL
See notes to financial statements.
$ 52,084
51,880
821,390
3,805
929,159
$6,068,213
2,760,000
8,828,213
$ 52,084
51,880
821,390
3,805
6,068,213
2,760,000
9,757,372
$31,465,801 31,465,801
53,332 53,332
6,464,370 6,464,370
6,517,702 31,465,801 37,983,503
$7,446,861 $31,465,801 $8,828,213 347.740,875
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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, 1982
REVENUES:
General property tax
State and Federal grants
Other taxes
Interest
Other
Total
EXPENDITURES:
Salaries and benefits
Professional services
Auto
Rent
Site operations
Utilities and
communication
Other
Property acquisition
Debt service:
Principal retirement
Repayment of short-term
loan
Interest
Total
EXCESS OF EXPENDITURES
OVER REVENUES
OTHER FINANCING
Proceeds from
Proceeds from
loan
Total
Budget
Actual
$ 4,561,341 $ 4,692,251
1,608,000 670,738
574,000 454,824
750,000 925,835
843_0000 107,067
8,336,341 6,850,715
SOURCES:
notes payable
short-term
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
FINANCING SOURCES OVER
EXPENDITURES
FUND BALANCE, JULY 1, 1981
FUND BALANCE, JUNE 30, 1982 $ 2,557,856 $ 6,517,702 $ 3.959,846
630,500
123,600
57,950
29,250
43,100
21,700
76,600
8,427,000
1,190,443
470,730
11,070,873 10,219,585
Variance
Favorable
(Unfavor-
able)
$ 130,910
(937,262)
(119,176)
175,835
(735,933)
(1,485,626)
29,937
15,071
4,505
(2,426)
6,837
(1,957)
12,543
2,298,101
3,041
(1,500,000)
(14,364)
851,288
(2,734,532) (3,368,870) (634,338)
600,563
108,529
53,445
31,676
36,263
23,657
64,057
6,128,899
1,187,402
1,500,000
485,094
3,094,184 3,094,184
1,500,000 1,500,000
4,594,184 4,594,184
1,225,314
5,292,388
3,959,846
(2,734,532)
5,292,388
See notes to financial statements.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Organization - The Midpeninsula Regional Open Space
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 accountings - The records of the District are
maintained on the modified accrual method of account-
ing. Under this method, revenues are generally recog-
nized in the period they become available and measur-
able, 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 - General fixed assets purchased
are stated at cost in the fixed asset group of
accounts. General fixed assets donated to the District
are stated at their estimated fair market value as of
the date received. Depreciation is not recorded for
general fixed assets.
General long-term debt - The principal portion of
long-term debt is recorded as a liability in the
general long-term debt account group.
2. GENERAL FIXED ASSETS
The changes in the general fixed assets account group
are as follows:
Land
Equipment
Structures and
improvements
Total
Balance
July 1, 1981
$24,958,902
224,717
153,283
Additions
$6,066,343
4,472
58,084
Balance
June 30, 1982
$31,025,245
229,189
211,367
$25,336.902 $6,128,899 $31,465,801
All fixed asset additions were acquired through general
fund expenditures.
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3. GENERAL LONG-TERM DEBT
Long-term debt issued to acquire land, equipment and
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, 1982 are as
follows:
General long-term debt, July 1, 1981
Proceeds from notes payable
Principal retirement
$ 6,921,431
3,094,184
(1,187,402)
General long-term debt, June 30, 1982 $ 8.828,213
Notes payable and Series A promissory notes bear
interest at rates from 4.6% to 10%. The weighted
average interest rates of long-term debt at June 30,
1982 is 6.75%. The debt matures through the year 2001
as follows:
Year Ending June 30: Principal
1983 $1,661,140
1984 1,602,578
1985 1,602,342
1986 1,581,612
1987 1,227,763
Thereafter 1,152,778
Total $8,828,213
Land with a cost of approximately $10,510,000 is
pledged as collateral for the notes payable.
4. LEASE OBLIGATIONS
Office facilities are leased under an operating lease
expiring in fiscal 1985. Minimum annual rentals are
as follows:
Year Ending June 30:
1983 $27,094
1984 27,094
1985 9,301
Total $63,489
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5. ADVANCE FROM TOWN OF LOS GATOS
In 1982 the District and the Town of Los Gatos entered
into a joint powers agreement to pursue the acquisi-
tion of a certain property. Under this agreement, Los
Gatos advanced $775,000 to the District to cover
one-half of the cost of acquiring the property,
including legal fees. Under the agreement the
District has agreed to match this amount. The
proposed acquisition is currently pending the outcome
of condemnation proceedings; therefore the amount
received by the District from Los Gatos is recorded as
a liability. The $775,000 has been reduced by
one-half of legal fees incurred to date ($9,798) and
has been increased by interest earned ($56,188).
6. RETIREMENT PLAN
District employees are covered under the Public
Employees Retirement System administered by the State
of California. The District manager is also covered
by the National Recreation and Park Association
Retirement Plan. Contributions to both plans for 1982
totaled $43,067. Pension benefits are funded as
accrued. The actuarially computed value of vested
benefits and plan assets applicable to District
employees is not available.
7. GIFT FUNDS
The District receives various contributions designated
for restricted uses which are included in the general
fund. Amounts received and expended in the current
year were as follows:
Monte Bello Gift Fund - $10,000 was contributed
towards the Monte Bello development project by the
Peninsula Open Space Trust. This contribution was
used for completion of a parking lot at the Monte
Bello Open Space preserve.
Green Foothill Skyline Memorial - $6,500 was
contributed to be used for property acquisition of
skyline foothills; it was spent to acquire property
in the Russian Ridge Open Space preserve.
Brenner Memorial - $70 was contributed to this fund
in 1982; the fund had a begining balance of
$2,803. The entire fund was expended in 1982 for
construction of the Stevens Creek watershed nature
trail in memory of Francis Brenner.
Holzhauser Memorial - $75 was contributed to this
fund in 1982; the fund now has a total balance of
$735. This amount will be used for the
Midpeninsula Regional Open Space DOCENT program in
memory of Elizabeth Holzhauser.
8. 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 the ranch compound.
Lease revenue received was approximately $79,000 in
1982. Minimum future lease revenues are not expected
to be significant.
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