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HomeMy WebLinkAboutMINUTES - 08032004 - C.52 BOARD OF SUPERVISORS ir►. + Millie Greenberg Centra Costa 03 August 2004 County SUBJECT: Audit Requirement for Reclamation District No.2065 SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RF MMPNO,AT,IONa AUTHORIZE Reclamation District No.2065 to submit audits to the County Auditor-Controller every two years instead of annually, so long as its annual budgeted revenues do not exceed$100,000, in accordance with the provisions of Government Code Section 26909. if its annual budgeted revenues exceed$100,000, it must submit annual audits. BACKGROUND, The Board of Trustees of the Reclamation District has unanimously requested the Board of Supervisors to take this action because of the high cost of the annual audit($3000)relative to its limited budget($70,000)and limited financial activity. The District maintains its funds in the County Treasury and all receipts and disbursements are recorded in the County Auditor-Controller's Finance System. ATTACHMENT: r'� YES SIGNATURE: ,- zw` RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMME�DATION Y OF BOARD� COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON s APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT } AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE.MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED .? J PN SWEETEN,CLERIC OF THE BOARD OF PERVISORS AND COUNTY ADMINISTRATOR 4e ­=06PUTY BY— CC: CAO Sup.Greenberg Jack Cooper,Principal Auditor Dante John Nomellini,Jr.,Secretary and Attorney Reclamation District 20165 P.O.Box 1461 Stockton,CA 95201 RECLAMATION DISTRICT NO. 2065 ("Veale Tract") 235 East Weber Avenue (95202) P.O. Box 1461 Stockton, California 95201 Telephone: (209) 465-5883 Pax: (209) 465-3956 Trustees Secretary and Attorney Thomas E. Baldocchi Dante John Nomellini,Jr. Coleman Foley Marc Frelier May 27, 2004 `, Office of the Clerk MAY 2 0" 20,04 of the Board of Supervisors Contra Costa Count ry P'�ar `' #� ` � 651 Pine Street Martinez, CA 94553 Re: Request for Permission to Replace Annual Audit With a Biennial Audit. Dear Clerk: I am the secretary and attorney for Reclamation District No. 2065 (Veale Tract) , (hereinafter"RD 2065") located within Contra Costa County. (A map showing the general location of RD 2065, i.e., "Veale Tract," is attached hereto.) California Government Code section 26909, subdivision(f), provides: A special district may, by unanimous request of the governing board of the special district, with unanimous approval of the board of supervisors, replace the annual audit with a biennial audit covering a two-year period or, if the district's annual budget does not exceed an amount specified by the board of supervisors, an audit covering a five-year period. (A complete copy of section 26909 is attached hereto.) Since annual audits for RD 2065 are currently costing upwards of$3,000.00, and since RD 2065 is a relatively small district both physically(i.e., the entire district is only 1,363.20 acres) and financially(i.e., its landowner assessments are less than$70,000.00 per year), last year the governing board of RD 2065 unanimously passed the attached resolution requesting permission from the Board of Supervisors of Contra Costa County to replace its annual audit Page 1 of 2 with a biennial audit covering a two-year period. As set forth in said resolution, "The Board of Trustees of RD 2065 respectfully submits that such a replacement is warranted given the high cost of such audits relative to [RD 2065s] limited budget and limited financial activity." Enclosed are copies of RD 2065 annual audit reports for the last three years as well as copies of the invoices for the casts to prepare such audits for the last two years. Accordingly, RD 2065 hereby requests that this matter be brought before the Board of Supervisors for their consideration. If there is anything further which RD 2065 can or must do to properly bring this matter before the Board of Supervisors or otherwise process this request, please do not hesitate to contact me(please ask for"Dan Jr."). Thank you very much for your time and attention to this matter. Very tru ours, Dante John Nomellini, Jr. DJWdjr Enclosures/Exhibits: A. Map showing location of RD 2065 ("Veale Tract"); B. Complete copy of Government Code section 26909; C. Copy of Board of Trustee's resolution requesting permission to switch to a biennial audit; D. Copies of RD 2065's annual audits for the last tl�see fiscal years; E. Copies of invoices for the cost of preparing the last two annual audits. Page 2 of 2 Exhibit A to RD 2065's Request for Permission to Replace Annual Audit With a Biennial Audit. •iAORAMHNTO {{f t kAgwaWNTG So.MANGNIOG 0V.TA AAfA'\ `� GMfkOOYlf LOS FNOBd; �j ar _ _--- . •NNO �w aA.. cawwiip� � .`iAiow .A!wu F. mpTxGT qs TAC PUMON0G PLANT i P y O;tTA F O } OWANVANwfb WAWf ONM ♦' Ft J — � AYCA A,NA +WW NOH artANn rwAar �• RY i gkiw0 � gyt TASmtek i StANB wT� 3 rT t� U— K+NGw Y MaOT A40 Vwfn W4NNKN Viii `*tN lIFOK IAACT `� IILANo dA T� LW O 'N TAAwwM4i TrffCAO4t iOM TKeANKFKN $VffUN MARSH _y�",� Wtsd10 RWR WW Kff SALINITY CONTROL {y_Ss y t'T Twi:GT rkagy �n COIWYiV+kw [' - rkAGT AIO iLANGG ,$j YAAGT YAx WGk4{. S i � V �'; �, iw8 MONOA .p SwfAwAw wLA�NiO i 0 liLANO rkAOT GGti-. S J TANG%_ ¢{E u y'4 ¢Q A FfT"fl{8U11: 16AiiMM98 V OCT PAAfaNGY �— •AHTIOCH � NGrGW1H'r 'rh/ A1owT• Y t P.♦, tAaC NWG4..Y+NG NK 'PACT LNNOGG iANo CT •AKG i iFCON iii '0,"'0,K. ••�+-•w•`^..+'y t iLYMI to." Owls ]k FCf r VCAAf IK4FN0 COMMA WMA ASSfkvoew —a, LGNi^aOkiK t .y�a, YTacet7aa Location of Project l/j1✓L O ffinfNYGG �w —M MACY Ut rwAGT NAKG urwA AO.;* OfSCOVfAv i• wl2cT w RAY ooti Aeiarw wKON 1aaNs „+ rA.cT � 3 WHk ux,ON HtANO AG;pA. G<PTiR WLaNO fi N MANT$CAW rA« ".0""' aA""Y O,fFMk; TRACY TAAO T ST;WAAi O[LTA PUMNNG PLANT 4UMPIwC PLANT 9 YYYIII � TAV,OT SOUTH 0— PUMHWG PLANT z o a � s TNACY Scale in Miles Location Map Reclamation District leo. 2065 Veale Tract MURRAY BURNS&KIEMEN-Consulting Civil Er Cneers 1615 29th Street Ste 300,Sacramento CA 95816-(916)456-4400 Plate 1 Exhibit B to RD 2065's Request for Permission to Replace Annual Audit With a Biennial Audit. Page i of 3 Westlaw. Page I West's Ann.Cal.Gov.Code §26909 P> West's Annotated California Codes Currentness Government Code(Refs&Annos) Title 3.Government of Counties(Refs&Annos) Division 2.Officers(Refs&Annos) Part 3.Other Officers(Refs&Annos) 'Q Chapter 4.Auditor(Refs&Annos) 'w Article 1. Duties Generally(Refs&Annos) w§ 26909. Audit of special purpose districts; reports; costs; financial review as substitute; conditions (a) The county auditor shall either make or contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of every special purpose district within the county for which an audit by a certified public, accountant or public accountant is not otherwise provided. In each case, the minimum requirements of the audit shall be prescribed by the Controller and shall conform to generally accepted auditing standards. (b) Where an audit of a district's accounts and records is made by a certified public accountant or public accountant, the minimum requirements of the audit shall be prescribed by the Controller and shall conform to generally accepted auditing standards, and a report thereof shall be filed with the Controller and with the county' auditor of the county in which the district is located. The report shall be filed within 12 months of the end of the fiscal year or years under examination. (c) Any costs incurred by the county auditor, including contracts with, or employment of, certified public accountants or public accountants, in making an audit of every special purpose district pursuant to this section shall be borne by the district and shalt be a charge against any unencumbered funds of the district available for the purpose. (d) For joint districts lying within two or more counties, the above provisions shall apply to the auditor of the county in which the treasury is located. (e)The county controller, or ex officio county controller, shall effect this section in those counties having a county controller,or ex officio county controller. Copr. C West 2004 No Claim to Orig.U.S.Govt.Works http-.//print.westlaw.corn/delivery.html?dest=atp&dataid=AO055800000019100003006924... 5/27/2004 Page 2 of 3 Page 2 West's Ann.Cal.Gov.Code §26909 (f) A special district may, by unanimous request of the governing board of the special district, with unanimou3a4*approval of the board of supervisors,replace the annual audit with a biennial audit covering a two-year period or, the district's annual budget does not exceed an amount specified by the board of supervisors, an audit covering five-year period. Notwithstanding the foregoing provisions of this section to the contrary, districts shall be exempt from the requirement of an annual audit if the financial statements are audited by the Controller to satisfy federal audit requirements. (g) A board of supervisors may substitute a financial review in accordance with definitions promulgated by the United States General Accounting Office for the audit of a special district as required by this section, provided that all of the following conditions are met: (1)The board of supervisors is the governing board of the district. (2)The special districts revenues and expenditures are transacted through the county's financial systems. (3)The special district's annual revenues do not exceed one hundred thousand dollars($100,000). CREDITS) (Added by Stats.1955, c. 1895, p. 3509, § 1. Amended by Stats.1957, c. 1967, p. 3508, § 1; Stats.1961, c. 1097, P. 2827, § 1; Stats.1963, c. 847, p. 2072, § 1; Stats.1974, c. 903, p. 1908, § 1, eff. Sept. 19, 1974; Stats.1979, c. 703,p.2181, §2;Stats.1981,c. 800,p.3097, §4; Stats.1986,c.982, § 10; Stats.1997,c.246(A.B.788), § 1.) CROSS REFERENCES Public cemetery districts,finances,audits of accounts and records,see Government Code§26909. Recreation and park districts,provision for regular audits,see Public Resources Code § 5788.25. CODE OF REGULATIONS REFERENCES Auditing requirements for special districts,see 2 Cal.Code of Regs. § 1131.1 et seq. Copr. Q West 2004 No Claim to Orig.U.S.Govt. Works http://print.westlaw.com/delivery.html?dest=atp&dataid=AO05 5 800000019100003006924... 5/27/2004 Page 3 of 3 Page 3 West's Ann.Cal.Gov.Code§26949 LIBRARY REFERENCES 1988 Main Volume Counties C-84. C.J.S.Counties § 132. Legal Jurisprudences 56 Am Jur 2d Municipal Corporations,Counties,and Other Political Subdivisions §235. Additional References McKinney's Cal Dag Counties § 38. West`s Ann.Cal.Gov.Cotte §26909,CA GOVT§26909 Current with urgency legislation through Ch.43&Res.Ch. 1 of 2004 Reg.Sess., Ch. I (end)of 3rd Ex.Sess.,Chs. I &2(Prop. 57)& Res.Ch. I (Prop. 58) of 5th Ex.Sess.,&Props.55&56 Copr. 0 2004 West,a Thomson business END OF DOCUMENT Copr.C West 2004 No Claim to Orig. U.S.Govt. Works http.//print.,,vestlaw.com/delivery.html?dest=atp&dataid=AO055 800000019100003006924... 5/27/2004 Exhibit C to RD 2065's Request for Permission to Replace Annual Audit With a Biennial Audit. RESOLUTION OF THE BOARD OF TRUSTEES OF RECLAMATION DISTRICT NO.2065(VEALE TRACT) ------------- REQUEST TO REPLACE ANNUAL AUDIT WITH A BIENNIAL AUDIT COVERING A TWO-FEAR PERIOD (Gov. Cade, §26909,subd. (f)) RESOLVED that, pursuant to California Government Cade section 26909, subdivision (f), the three-member Board of Trustees of Reclamation District No. 2065 ("RD 2065"), Contra Costa County, California, hereby unanimously requests permission from the Contra Costa County Board of Supervisors to replace its annual audit with a biennial audit covering a two-year period. The Board of Trustees of RD 2055 respectfully submits that such a replacement is warranted given the high cost of such audits relative to its limited budget and limited financial activity. Dated: —/ ` 24 Coleman Foley Trustee Dated:/,,- Thomas Baldocchi Trustee Dated: /d } Marc Frelier Trustee Exhibit D to RD 2065's Request for Permission to Replace Annual Audit With a Biennial Audit. RECLAMATION DISTRICT NO. 2065 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS'REPORT JUNE 30, 2001 CONTENTS PAGE INDEPENDENT AUDITORS'REPORT 1 FINANCIAL STATEMENTS COMBINED STATEMENT OF ASSETS, LIABILITIES AND FUND EQUITY- GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS ARISING FROM CASH TRANSACTIONS 2 COMBINED STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS AND CHANGES IN FUND BALANCES --GOVERNMENTAL FUND TYPES 3 STATEMENT OF CHANGES IN GENERAL FLED ASSETS ACCOUNT GROUP ARISING FROM CASH TRANSACTIONS 4 NOTES TO FINANCIAL STATEMENTS 5 r CROCE & COMPANY Accountancy Corporation INDEPENDENT AUDITORS'REPORT Board of Trustees Reclamation District No. 2065 We have audited the accompanying combined statement of assets, liabilities and fund equity --- governmental fund types and account groups arising from cash transactions of Reclamation District No. 2065 as of June 30, 2001, and the related statement of cash receipts, cash disbursements and changes in fund balances—governmental fund types and statement of changes in general fixed assets account group arising from cash transactions for the year then ended. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as discussed in the following paragraphs, we conducted our audit in accordance with auditing standards generally accepted in the United States of America. , Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note A, these financial statements were prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles. As explained in Note C,prior to July 1, 1995,the District did not maintain detailed records of the historical cost of general fixed assets and such costs cannot be determined. Therefore, we do not express an opinion on the accompanying general fixed assets account group statement of assets, liabilities and fund equity or the statement of changes in general fixed assets account group arising from cash transactions. In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had the District been able to provide us with adequate records regarding the historical cost of general fixed assets, the financial statements referred to above present fairly, in all material respects, the assets, liabilities and fund equity of Reclamation District No. 2065 at June 30, 2001, and its cash receipts, cash disbursements and changes in fund equity and changes in general fixed assets account group for the year then ended, in conformity with the basis of accounting described in Note A. CROCE & COMPANY Accountancy Corporation Stockton, California November 19, 2001 RECLAMATION DISTRICT NO. 2065 COMBINED STATEMENT OF ASSETS, LIABILITIES AND FUND EQUITY— GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS ARISING FROM CASH TRANSACTIONS June 30, 2001 Governmental Fund Types __ _ Account Groups General General Total Special fixed long-term (Memorandum General revenue assets debt PRIY) ASSETS Cash and investments Cash in bank $ 37,296 $ - $ f $ r $ 37,296 Contra Costa County Treasurer 164 93 257 General fixed assets - - 10,510 - 10,510 Amount to be provided for the retirement of general long- term debt - - - __78,000 78,000 Total assets 10,510 78 000 12 6 LIABILITIES AND FUND EQUITY Liabilities Registered warrant payable S - $ - 78,000 78,000 Total liabilities - - - 78,000 78,000 Fund equity Fund balance—unreserved 37,460 93 - - 37,553 Investment in general fixed assets - - 10,510 = 10,510 Total fund equity 37,460 93 10,510 48,063 Total liabilities and fund equity S 93 10,510 $__7_aM 1 The accompanying nates are an integral part of this financial statement. 2 RECLAMATION DISTRICT NO. 2065 COMBINED STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS AND CHANGES IN FUND BALANCES-GOVERNMENTAL FUND TYPES Year ended June 30, 2001 Governmental Fund Types Total Special (Memorandum General revenue only) Cash receipts State assistance $ 74,207 $ - $ 74,207 Assessments 52,969 - 52,969 Interest 120 - 120 t Total cash receipts 127,296 - 127,296 Cash disbursements - Vegetation control 15,669 15,669 Engineering 11,836 - 11,836 Levee repairs and maintenance 9,445 9,445 Legal fees 6,675 6,675 Insurance 6,256 _ 6,256 Utilities 5,283 Y 5,283 Accounting fees 3,500 3,500 Rodent control 3,430 - 3,430 Pump repairs and maintenance 1,367 = 1,367 Bank charges 6 6 Debt service Principal 26,000 - 26,000 Interest 8,320 - 8,320 Total cash disbursements 97.787 - 97,787 Excess of cash receipts over cash disbursements 29,509 - 29.509 Other financing sources Transfer of registered warrant payable to the general long-term debt account group 104,000 - 104.000 Total other financing sources 104»000 - 104,000 Excess of cash receipts and other financing sources over cash disbursements and other financing uses 133,509 - 133,509 Fund balance(deficit),beginning of year (96»049) 93 (95»956) Fund balance, end of year 37,460 8 93 $ 37,553 The accompanying notes are an integral part of this financial statement. 3 RECLAMATION DISTRICT NO. 2065 STATEMENT OF CHANGES IN GENERA`C,FIXED ASSETS ACCOUNT GROLT, ARISING FROM CASH TRANSACTIONS Year ended June 30, 2001 Balance Balance July-1, 2000 Additions Deletions June 30, 2001 Equipment $ 10.510, The accompanying nates are an integral part of this financial statement. 4 RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2001 NOTE A—SUMMARY OF ACCOUNTING POLICIES The District formed on April 2, 1923, under Sections 50000 et seq. of Division 15 of the California State Water Code to provide drainage, irrigation, and complete reclamation of lands within District boundaries. It is governed by a three-member board of trustees, each elected by the landowners to a four-year term. A summary of significant accounting policies applied in the preparation of the accompanying financial statements follows. Reportin enti The District management considered all potential component units for inclusion in the reporting entity by applying the criteria set forth in generally accepted accounting principles. The District concluded that there are no potential component units which should be included in the reporting entity, Fund accountin The accounts of the District are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The District has created one type of fund (governmental), which is comprised of two funds, and two account groups. Each fund is accounted for by a separate set of self-balancing accounts that comprises its assets, liabilities, fund balance, revenues and. expenditures. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws, regulations or other restrictions. The two funds and two account groups are described below: Governmental Fund Types--These are the funds through which most governmental functions typically are financed. The funds included in this category are as follows: General fund — This fund is established to account for resources devoted to financing the general services that the District performs. General tax revenues and other sources of revenue used to finance the fundamental operations of the District are included in this fund. This fund is charged with all costs of operating the government for which a separate fund has not been established. r (continued) 5 RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2001 NOTE A--SUMMARY OF ACCOUNTING POLICIES (CONTIlv'UED} Special revenue fund — This fund is established to account for proceeds of specific revenue sources other than special assessments, expendable trusts or major capital projects that are legally restricted to expenditures for specified purposes. Generally, resources accounted for in this fund originate from state and federal programs. Account Group — This is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. The District has two account groups which are described below. General fixed assets — This 'is not a fund but rather an account group that is used to account for general fixed assets acquired principally for general purposes. Purchases of general fixed assets are recorded as expenditures at the time of purchase. Such assets are capitalized in the general fixed assets account group at cost. General long-term debt—The general long-term debt account group is used to account for unmatured general long-term indebtedness of the District. Basis of accounting The District's financial statements were prepared utilizing the cash basis of accounting. Revenues are recognized when received and expenditures are recognized when paid. Demand warrants The District is authorized under the California State Water Code to issue demand warrants. Assessments ' Assessments are levied at the discretion of the Board of Trustees. Assessments are based on the total land or acreage held by the landowners within the District. (Continued) 6 RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2001 NOTE A—SUMMARY OF ACCOUNTING POLICIES Concentrations The District is comprised of three landowners of which two landowners' shares represent 96% of the total assessment valuation of District land. Budgetan.accountiLig The District does not utilize formal budgetary procedures and is not required to adopt such g � p q p procedures by law. Total columns The combined statement of assets, liabilities and fund equity— governmental fund types and account groups arising from cash transactions and the combined statement of cash receipts, cash disbursements and changes in fund balances — governmental fund types include total columns that are described as memorandum only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position and results of operations or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. NOTE R—CASH AND INVESTMENTS Cash and investments of the Districts as of June 30, 2001 consist of the following: Carrying Bank Fair amount balance value Deposits Insured(FDIC) Investments in external investmentp ool Contra Costa County Treasurer Deposits in commercial accounts are insured by the FDIC. Cash on deposit with the Contra Costa County Treasurer is invested in a pooled fund maintained by the Treasurer. These funds are pooled with other County deposits for investment purposes by the County Treasurer. The County Treasurer is responsible for the control and safekeeping of all instruments of title for all investments of the funds. The carrying value approximates fair value as of June 30, 2001. 7 RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2001 NOTE C—GENERAL FIXED ASSETS Prior to July 1, 1995, the District did not maintain detailed records of the historical cost of general fixed assets and such costs cannot be determined. NOTE D--REGISTERED WARRANT PAYABLE/LONG•-TER�TM DEBT General long-term debt is used to account for long-term debt related to District registered warrants issued as security for a loan payable to the Bank of Lodi. The loan was issued February 23, 1999 in the amount of$130,000 to finance levee repairs and maintenance. The loan will be repaid from future assessments in five equal principal installments of$26,000 plus accrued interest at 8%. The loan matures February 23, 2004. Principal maturities of general long-term debt are as follows: Year ending June 30 2002 $ 26,000 2003 26,000 2004 _ 26.000 78,000 A schedule of changes in the long-term debt accounted for in theeneral long-term debt g g account group for the year ended June 30, 2001 follows: Beginning balance - g g ance $ Transfer W..July 1, 2000 from general fund 104,000 Registered warrants issued Prepayments on registered warrant redemptions (26,000 $ 7 General long-term debt outstanding consists of a registered warrant held by the Bank of Lodi. Warrant No. Amount 673 $ 130,000 Less prepayments to June 30, 2001 52 000 8 RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2001 NOTE E—STATE AND FEDERAL ASSISTANCE The District is participating in the California Delta Levee Subventions Program (AB-360), This program provides state financial assistance to local agencies responsible for maintenance ofnonproject levees in the Sacramento-San Joaquin Delta.. NOTE F—INSURANCE The District is covered by the following types of insurance as of June 30, 2001: Coverage Limits of Liability Bodily injury and property damage S 5,000,000110,000,000 Personal injury and advertising injury 5,000,000110,000,000 Professional liability 5,000,000110,000,000 Wrongful acts 5,000,000110,000,000 Fire damage 1,000,000 per fire Medical expense 10,000 per person Blanket building and personal property 2,500,000 Employee dishonesty 250,000 NOTE G--GOVERNING BOARD As of June 30,2001, the three members of the District's Board of Trustees were as follows: Trustee Term expires Thomas E. Baldocchi November 2003 Coleman Foley September 2004 Marc R. Frelier September 2004 NOTE H—RELATED PARTY TRANSACTIONS The .District paid Thomas E. Baldocchi $1,200 for pump repairs and maintenance during the year ended June 30, 2001. Thomas E. Baldocchi served on the District's Board of Trustees during;the year ended June 30, 2001. 9 RECLAMATION DISTRICT NO. 2065 PLNANCIAL STATEMENITS AND INDEPENDENT AUDITORS'REPORT JUNE 30, 2002 CONTENTS PAGE INDEPENDENT AUDITORS'REPORT 1 FINANCIAL STATEMENTS COMBINED BALANCE SHEET-GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS 2 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUNIS TYPES 3 STATEMENT OF CHANGES IN GENERAL FIXED ASSETS ACCOUNT GROUP 4 NOTES TO FINANCIAL STATEMENTS 5 ROLE & %,,.'O PANY Accountancy Corporation INDEPENDENT AUDITORS'REPORT Board of Trustees Reclamation District No. 2065 We have audited the accompanying combined balance sheet — governmental fund types and account groups of Reclamation District No. 2065 as of June 30, 2002, and the related statement of revenues, expenditures and changes in fund balances--governmental fund types and statement of changes in general fixed assets for the year then ended. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as discussed in the following paragraphs, we conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. The District has kept its records and has prepared its financial statements for previous years on the cash basis of accounting. This method recognizes revenues when received and expenditures when paid. As described in Note A to the financial statements, the District adopted the modified accrual basis of accounting as of July 1, 2001 which recognizes revenues when they become both available and measurable and expenditures in the accounting period in which the liability is incurred. The appropriate adjustments have been made to fund balance as of July 1, 2001. As explained in Note C, prior to July 1, 1995, the District did not maintain detailed records of the historical cost of general fixed assets and such costs cannot be determined. Therefore, we do not express an opinion on the accompanying general fixed assets account group balance sheet or the statement of changes in general fixed assets. In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had the District been able to provide us with adequate records regarding the historical cost of general fixed assets, the financial statements referred to above present fairly, in all material respects, the financial position of Reclamation District No. 2065 at June 30, 2002, and its revenues, expenditures and changes in fund balance and changes in general fixed assets account group for the year then ended, in conformity with the accounting principles generally acre in the United Sta of erica. PANY Accountancy Corporation Stockton, California September 27, 2002 RECLAMATION DISTRICT NO. 2065 COMBLNED BALANCE SHEET--GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS June 30, 2002 Governmental Fund Types Account Groins General General Total Special fixed long-term (Memorandum General revenue assets debt one } ASSETS Cash and investments - - - Contra Costa County Treasurer $ 37,455 $ $ $ $ 37,455 Prepaid insurance 2,782 - - - 2,782 General fixed assets - - 11,710 - 11,710 Amount to be provided for the retirement of general long - - - 51000 52,000 term debt Total assets S 52,,000 LIABILITIES AND FUND EQUITY Liabilities Registered warrant payable S - S - $ - $ 52,000 $ 52,000 Accounts payable 11,283 - - - 11,283 Warrants payable _3,020 - - - 3.020 Total liabilities 14,303 - - 52,000 66,303 Fund equity Fund balance--unreserved 25,934 - - - 25,934 Investment in general fixed assets - 11,710 11,710 - Total fund equity 25,934 11,710 37,644 • Total liabilities and fined equity 40.237 The accompanying notes are an integral part of this financial statement. 2 RECLAMATION DISTRICT NO. 2065 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -GOVERNMENTAL FUND TYPES Year ended June 30, 2002 Governmental Fund Types-__ Total Special (Memorandum General revenue only) Revenues Assessments $ 58,212 $ - $ 58,212 State assistance 28,849 - 28,849 Interest 49 49 Total revenues 87,110 - 87,114 Expenditures Legal fees 9,465 - 9,065 Vegetation control 8,614 - 8,614 Utilities 6,655 6,655 Engineering 5,579 - 5,579 Insurance 3,178 - 3,178 Accounting fees 2,775 - 2,775 Levee repairs and maintenance 1,820 - 1,820 Rodent control 884 - 884 Pump repairs and maintenance 141 - 141 g Bank charges 20 - 20 Capital outlay 1,200 - 1,200 Debt service Principal 26,000 - 26,000 Interest 6,240 - 6,240 Total expenditures 72,167 - 72,167 Excess of revenues over expenditures 14,943 - 14.943 Other financing sources (uses) Operating transfers in(out) 93 {93) - Total other financing sources 93 (93) - Excess of cash receipts and other financing sources over cash disbursements and other financing uses 15,036 (93) 14,943 ir Fund balance,beginning of year As previously reported 37,460 93 37,553 Adjustment from the cash basis of accounting to the modified accrual basis of accounting (Note A) (26,562 - (26,562) Fund balance, end of year $ 25.934 - 25 934 The accompanying notes are an integral part of this financial statement. 3 RECLAMATION DISTRICT NO. 2065 STATEMENT OF CHANGES IN GENERAL FIXED ASSETS ACCOUNT GROUP Year ended June 30, 2002 Balance Balance July 1, 2001 Additions Deletions June 30, 2402 Equipment $ 11510 L 20 S 11.714 The accompanying notes are an integral part of this financial statement. p3 11 S 3 T' Ij } 4 RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2002 NOTE A o SUMMARY OF ACCOUNTING POLICIES The District formed on April 2, 1923, under Sections 50000 et seq. of Division 15 of the California State 'Water Code to provide drainage, irrigation, and complete reclamation of lands within District boundaries. It is governed by a three-member board of trustees, each elected by the landowners or appointed by the County Board of Supervisors to a four-year term. A summary of significant accounting policies applied in the preparation of the accompanying financial statements follows. Repvrtink entity The District management considered all potential component units for inclusion in the reporting entity by applying the criteria set forth in generally accepted accounting principles. The District concluded that there are no potential component units which should be included in the reporting entity. .Fund accounting The accounts of the District are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The District has created one type of fund (governmental), which is comprised of two funds, and two account groups. Each fund is accounted for by a separate set of self-balancing accounts that comprises its assets, liabilities, fund balance, revenues and expenditures. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws,regulations or other restrictions. The two funds and two account groups are described below: Governmental Fund Types—These are the funds through which most governmental functions typically are financed. The funds included in this category are as follows: General fund — This fund is established to account for resources devoted to financing the general services that the District performs. General tax revenues and other sources of revenue used to finance the fundamental operations of the District are included in this fund. This fund is charged with all costs of operating the government for which a separate fund has not been established. (Continued) 5 r r RECLAMATION DISTRICT NO. 2065 NOTES TO FRgANCIAL STATEMENTS June 30, 2002 MOTE A—SUMMARY OF ACCOUNTING POLICIES (CONTDtUED) Special revenue fund — This fund is established to account for proceeds of specific revenue sources other than special assessments, expendable trusts or major capital projects that are legally restricted to expenditures for specified purposes. Generally, resources accounted for in this fund originate from state and federal programs. Account Group - This is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. The District has two account groups which are described below. General fixed assets — This is not a fund but rather an account group that is used to account for general fixed assets acquired principally for general purposes. Purchases of general fixed assets are recorded as expenditures at the time of purchase. Such assets are capitalized in the general fixed assets account group at cost. General long-term debt—The general long-term debt account group is used to account for unmatured general long-term indebtedness of the District. Basis of accountin During prior years, the District's governmental funds utilized the cash basis of accounting. Revenues were recognized when received and expenditures were recognized when paid. For the fiscal year beginning July 1, 2001, the District changed to a modified accrual basis of accounting which is required by accounting principles generally accepted in the United States of America. Under this method, revenues are recognized in the accounting period in which they become both available and measurable. The District considers property tax assessments as available if they are collected within 45 days after year-end. Expenditures are recognized { in the accounting period in which the fund liability is incurred. Demand warrants The District is authorized under the California State Water Code to issue demand warrants. Assessments Assessments are levied at the discretion of the Board of Trustees. Assessments are based on the total land or acreage held by the landowners within the District. (Continued) 6 A RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2002 NOTE A—SUMMARY OF ACCOUNTING POLICIES Concentrations E.j The District is comprised of four landowners of which two landowners' shares represent 95% of the total assessment valuation of District land. Budgetan accounting The District does not utilize formai budgetary procedures and is not required to adopt such procedures by law. Total columns The combined financial statements include total columns that are described as memorandum only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position and results of operations or changes in financial position in conformity with accounting principles generally accepted in the United States of America. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. a Estimates I The preparation of combined financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. G NOTE B—CASH AND INVESTMENTS Cash and investments of the District as of Tune 30, 2002 consist of the following: Carrying Fair Investments in external investment pool amount value Contra Costa County Treasurer 37,455 S m3'7.455 Cash on deposit with the Contra Costa County Treasurer is invested in a pooled fund maintained by the Treasurer. These funds are pooled with other County deposits for investment purposes by the County Treasurer. The County Treasurer is responsible for the control and safekeeping of all instruments of title for all investments of the funds. The carrying value approximates fair value as of June 30, 2002. 7 RECLANI IA.TION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2002 NOTE C--GENERAL FIXED ASSETS Prior to July 1, 1995, the District did not maintain detailed records of the historical cost of general fixed assets and such costs cannot be determined. NOTE D —REGISTERED WARRANT PAYABLE/LONG-TER.ML DEBT General long-term debt is used to account for long-term debt related to District registered warrants issued as security for a loan payable to the Bank of Lodi. The loan was issued February 23, 1999 in the amount of$130,000 to finance levee repairs and maintenance. The current amount outstanding at June 30, 2002 is $52,000. The loan will be repaid from future assessments in five equal principal installments of$26,000 plus accrued interest at 8%. The loan.matures February 23, 2004, Principal maturities of general long-term debt are as follows: Year ending June 30, 2003 $ 26,000 2004 26.000 52000 A schedule of changes in the long-term debt accounted for in the general long-term debt account group for the year ended June 30, 2002 follows: Beginning balance $ 78,000 F Registered warrants issued - Prepayments on registered warrant redemptions 26 400) E General long-term debt outstanding consists of a registered warrant held by the Bank of Lodi. Warrant?.To. Amount 673 $ 130,404 Less prepayments to June 30, 2002 (78,000) $ 52.000 8 -s RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2002 x NOTE E--STATE AND FEDERAL ASSISTANCE The District is participating in the California Delta Levee Subventions Program. This program provides state financial assistance to local agencies responsible for maintenance of nonproject levees in the Sacramento-San Joaquin Delta. NOTE F—INSURANCE The District is covered by the following types of insurance as of June 30, 2002: Coverage Limits of Liability e Bodily injury and property damage $ 5,000,000110,000,000 Personal injury and advertising injury 5,000,000110,000,000 Professional liability 5,000,000110,000,000 Wrongful acts 5,000,000110,000,000 Fire damage 1,000,000 per fire Medical expense 10,000 per person Blanket building and personal property 2,500,000 Employee dishonesty 250,000 NOTE G— GOVERNING BOARD As of June 30, 2002, the three members of the District's Board of Trustees were as follows: Trustee Term expires Thomas E. Baldocchi November 2003 Coleman Foley September 2004 Marc R. Frelier September 2004 NOTE H—RELATED PARTY TRANSACTIONS The District paid Thomas E. Baldocchi $1,820 for levee repairs and maintenance during the year ended June 30, 2002. Thomas E. Baldocchi served on the District's .Board of Trustees during the year ended June 30, 2002. 4 f 9 I I RECLAMATION DISTRICT NO. 2065 FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS'REPORT I JUNE 30,2003 CROCE & COMPANY Accountancy Corporation s CONTENTS PAGE INDEPENDENT AUDITORS`REPORT I FINANCIAL STATEMENTS COMBINED BALANCE SHEET-GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS 2 COMBINED STATEMENT OF REVENUES, EXPENDITUTRES AND CHANGES IN FUND BALANCES (DEFICIT)-GOVERNMENTAL FUND TYPES 3 STATEMENT OF CHANGES IN GENERAL FIXED ASSETS ACCOUNT GROUP 4 NOTES TO FINANCIAL STATEMENTS 5 ROE & COMPANY Accountancy Corporation INDEPENDENT AUDITORS"REPORT Board of Trustees Reclamation District No. 2065 We have audited the accompanying combined balance sheet -- governmental fund types and account groups of Reclamation District No. 2065 as of June 30, 2003, and the related statement of revenues, expenditures and changes in fund balances (deficit) -- governmental fund types and statement of changes in general fixed assets for the year then ended. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United Mates of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As explained in Note C, prior to July 1, 1995, the District slid not maintain detailed records of the historical cost of general fixed assets and such costs cannot be determined. Therefore, we do not express an opinion on the accompanying general fixed assets account group balance sheet or the statement of changes in general fixed assets. In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had the District been able to provide us with adequate records regarding the historical cost of general fixed assets, the financial statements referred to above present fairly, in all material respects, the financial position of Reclamation District No. 2065 at June 30, 2003, and its revenues, expenditures and changes in fund balance and changes in general fixed assets account group for the year then d, in conformity with the accounting principles generally aec in the United States Amen a. I ANY Accountancy Corporation Stockton, California August 29, 2003 I a RECLAMATION DISTRICT NO.2065 COMBINED BALANCE SHEET--GOVERNMENTAL FUND TYPES AND ACCOUNT GROUPS June 30, 2003 G Governmental Fund Types Account Groups General General Total a� Special fixed long-term (Memorandum ; t. General revenue assets debt only) i ASSETS Cash and investments Contra Costa County Treasurer $ 10,426 $ - $ - $ - $ 10,426 General fixed assets - - 11,710 - 11,710 Amount to be provided for the retirement of general long- term debt - - - 26,000 26,000 Total assets26 $ —-_ LIABILITIES AND FUND EQUITY Liabilities Registered warrant payable $ - $ - $ - $ 26,000 $ 26,000 Accounts payable 18,023 - _ - 18,023 Warrants payable 3,089 - - - 3,089 Total liabilities 21,112 - - 26,000 47,112 Fund equity (deficit) Fund balance(deficit)–unreserved (10,686) - - - (10,686) Investment in general fixed assets - - 11,710 - 11,710 Total fund equity 10,686 - 11,710 - 1,02.4 Total liabilities and fund equity - &�. 0 6 0S 48,136 The accompanying nates are an integral part of this financial statement. ___ .... 5 RECLAMATION DISTRICT NO. 2065 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICIT)—GOVERNMENTAL FUND T'Y'PES Year ended June 30, 2003 _Governmental Fund Types Total -- Special (Memorandum General revenue on1 Revenues Assessments $ 28,000 $ - $ 28,000 State assistance 7,560 - 7,560 Total.revenues 35,560 - 35,560 Expenditures Engineering 18,226 - 18,226 Utilities 11,786 11,786 Legal fees 3,925 - 3,925 Insurance 3,281 - 3,281 Accounting fees3,200 - 3,200 Levee repairs and maintenance 889 - 889 Pump repairs and maintenance 484 - 484 Office 220 - 220 County charges 9 - 9 Debt service Principal 26,000 - 26,400 Interest -- 4,160 - 4,160 Total expenditures __- 72,180 - 72,180 Excess (deficiency) of revenues over ' expenditures (36,620) - (36;620) Fund balance, beginning of year 25,934 - 25,934 Fund balance(deficit), end of year $ 0 686) The accompanying notes are an integral part of this financial statement. RECLAMATION DISTRICT NO. 2065 STATEMENT OF CHANGES IN GENERAL FIXED ASSETS ACCOUNT CROUP Year ended June 30,2003 Balance Balance July 1, 2002 Additions Deletions June 30, 2003 Equipment 11,710 The accompanying notes are an integral part of this financial statement. t 4 { RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A—SUMMARY OF ACCOUNTING POLICIES The District formed on April 2, 1923, under Sections 50000 et seq. of Division 15 of the California State Water Code to provide drainage, irrigation, and complete reclamation of lands within District boundaries. It is governed by a three-member board of trustees, each elected by the landowners or appointed by the County Board of Supervisors to a four-year term. A summary of significant accounting policies applied in the preparation of the accompanying financial statements follows. Reporting entity The District management considered all potential component units for inclusion in the reporting entity by applying the criteria set forth in generally accepted accounting principles. The District concluded that there are no potential component units which should be included in the reporting entity. Fund qccour tin The accounts of the District are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The District has created one type of fund (governmental), which is comprised of two funds, and two account groups. Each fund is accounted for by a separate set of self-balancing accounts that comprises its assets, liabilities, fund balance, revenues and expenditures. The individual funds account for the governmental resources allocated to them for the purpose of carrying on specific activities in accordance with laws,regulations or other restrictions. The two funds and two account groups are described below: Governmental Fund Types—These are the funds through which most governmental functions typically are financed. The funds included in this category are as follows: General fund—This fund is established to account for resources devoted to financing the general services that the District performs. General tax revenues and other sources of revenue used to finance the fundamental operations of the District are included in this fund. This fund is charged with all costs of operating the government for which a separate fund has not been established. (Continued) �, 5 RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A—SUMMARY OF ACCOUNTING POLICIES (CONTINUED) Special revenue fund — This fund is established to account for proceeds of specific revenue sources other than special assessments, expendable trusts or major capital projects that are legally restricted to expenditures for specified purposes. Generally, resources accounted for in this fund originate from state and federal programs. Account Group — This is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. The District has two account groups which are described below. General fixed assets — This is not a fund but rather an account group that is used to account for general fixed assets acquired principally for general purposes. Purchases of general fixed assets are recorded as expenditures at the time of purchase. Such assets are capitalized in the general fixed assets account group at cost. General long-term debt—The general long-term debt account group is used to account for unmatured general long-term indebtedness of the District. Basis of accounting The District recognizes exchange and nonexchange transactions and other revenues under the modified accrual basis of accounting. Under this method, revenues are recognized in the accounting period in which they become both available and measurable. The District considers other revenues as available if they are collected within 45 days after year-end and apply to the year ended June 30, 2003. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unrnatured interest on general long-term debt which is recognized when due. Demand warrants The District is authorized under the California State Water Code to issue demand warrants. Assessments Assessments are levied at the discretion of the Board of Trustees. Assessments are based on the total land or acreage held by the landowners within the District. (Continued) 6 a RECLAMATION DISTRICT NO 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE A—SUMMARY OF ACCOUNTING POLICIES Concentrations The District is comprised of four landowners of which two landowners' shares represent 95% of the total assessment valuation of District land. Budl etaryaccountin_ The District does not utilize formal budgetary procedures and is not required to adopt such procedures by law. Total columns The combined financial statements include total columns that are described as memorandum only to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position and results of operations or changes in financial position in conformity with accounting principles generally accepted in the United States of America. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Estimates The preparation of combined financial statements in conformity with accounting principles generally accepted in the United States of America requires management to mare estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE B--CASH AND INVESTMENTS Cash and investments of the District as of June 30, 2003 consist of the following: Carrying Fair r amount value Investments in external investment pool Contra Costa County Treasurer S 10,426 ?42 Cash on deposit with the Contra Costa County Treasurer is invested in a pooled fund maintained by the Treasurer. These funds are pooled with other County deposits for investment purposes by the County Treasurer. The County Treasurer is responsible for the control and safekeeping of all instruments of title for all investments of the funds. The carrying value approximates fair value as of June 30, 2003. 7 RECLAMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE C—GENERAL FIXED ASSETS Prior to July 1, 1995, the District did not maintain detailed records of the historical cost of general fixed assets and such costs cannot be determined. NOTE D—REGISTERED WARRANT PAYABLE/LONG-TERM DEBT General long-term debt is used to account for long-term debt related to District registered warrants issued as security for a loan payable to the Bank of Lodi. The loan was issued February 23, 1999 in the amount of$130,000 to finance levee repairs and maintenance. The current amount outstanding at June 30, 2003 is $26,000. The loan will be repaid from future assessments in five equal principal installments of$26,000 plus accrued interest at 8%. The loan matures February 23,2004. A schedule of changes in the long-term debt accounted for in the general long-term debt account group for the year ended June 30, 2003 follows: Beginning balance $ 52,000 Registered warrants issued - Prepayments on registered warrant redemptions 26.000) 26,000 General long-term debt outstanding consists of a registered warrant held by the Bank of Lodi. Warrant No. Amount 1. 673 $ 130,000 Less prepayments to June 30, 2003 04,OUO O 26,000 NOTE E--STATE AND FEDERAL ASSISTANCE The District is participating in the California Delta Levee Subventions Program. This program provides state financial assistance to local agencies responsible for maintenance of nonproject levees in the Sacramento-San Joaquin Delta... 8 RECLAIMATION DISTRICT NO. 2065 NOTES TO FINANCIAL STATEMENTS June 30, 2003 NOTE F—INSURANCE The District is covered by the fallowing types of insurance as of June 30, 2003: Coverage Limits of liability Bodily injury and property damage $ 1,000,000/3,000,000 Personal injury and advertising injury 1,000,000/3,000,000 Professional liability 1,000,000/3,000,000 Wrongful acts 1,000,000/3,000,000 Fire damage 1,000,000 per fire Automobile liability 1,000,000 Employee dishonesty 250,000 NOTE G—GOVERNING BOARD As of June 30, 2003, the three members of the District's Board of Trustees were as follows: Trustee Term expires Thomas E. Baldocchi November 2003 Coleman Foley September 2004 Marc R. Frelier September 2004 MOTE H—GENERAL FUND DEFICIT The District has a general fund deficit of$10,686. Management intends to reduce this deficit through future assessments. t w Exhibit it E to RD 2065's Request for Permission to Replace Annual Audit With a Biennial Audit. Croce & Company Accountancy Corporation Dost Office Box 1607 Stockton,CA 95201-1607 Phone: (209)943-2222 FAX: (209)943-2220 ***Invoice *** Invoice Date: November 30,2002 Reclamation District No. 2065 Invoice Dumber: 00173122 5-3rd Street,Suite 1200 Client Dumber: 06784-00 San Francisco,CA 94103 Far professional services through November 15, 2002. Preparation of audited financial statements with independent auditors'report for the year ended June 30, 2002. Engagement fee. 2,975.00 Amount which applies to compiling the Special Districts (200.00) Financial Transactions Report for the year ended June 30, 2002. We are still waiting for the revised software from the State Controller's Office and will provide and bill for this service once performed. Amount due for the audited financial statements is $2775.00. Total Invoice Amount $ 2,775.00 *Please return one copy of this invoice with your Payment Fees are due upon receipt and become delinquent after 60 days. A 1%service charge per month will be added for each month or partial month of delinquency. Croce & Company E Accountancy Corporation 1 ryi Post Office Box 1607 ` NOV tF Stockton,CA 95201-1607 Phone: (204)943-2222 PAX: (209)943-2 0 ***Invoice ** Invoice Date; November 20,2003 Reclamation District No. 20155 Invoice Number: 00176862 c/o Dan No ellini,Jr. Client number: 06784-00 235 Bast Weber Avenue Stockton,CA 95202 For profer sionul services through November 15, 2003. Preparation of audited financial statements with independent auditors'report for the year ended June 30, 2001 Total Invoice Amount $ 3,095.00 *.Please return one coup of this invoice with pour payment Pees are due upon receipt and become delinquent after 60 days. A I%service charge per month will be added for each month or partial month of delinquency.