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HomeMy WebLinkAboutMINUTES - 11091993 - 1.53 . _ Contra Costa TO: BOARD OF SUPERVISORS Col,1 / r c'uhJ � ����JJ FROM: Harvey E. Bragdon Director of Community Development DATE: November 9, 1993 SUBJECT: Audit of Financial Statements 1983 , 1985 and 1991 Contra Costa Home Mortgage Revenue Bonds SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Accept Audit Report on the Financial Statements completed by Maze and Associates for Fiscal Year 1992/93 of the following programs: 1983 Contra Costa Home Mortgage Revenue Bonds, 1985 Contra Costa Home Mortgage Revenue Bonds and 1991 Contra Costa Home Mortgage Finance Authority Bonds. FISCAL IMPACT None. BACKGROUND/REASONS FOR RECOMMENDATIONS The Indentures for the above referenced Home Mortgage Revenue Bond Programs provide that an annual audit of the financial statements be . completed. Maze and Associates have completed the audit of the respective programs as of June 30, 1993 and submitted its report. CONTINUED ON ATTACHMENT: YES. SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR R C ENDA _ON OF BO D COMMITTEE . APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON ly93 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT :�T ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ?ABSTAIN: MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. cc: Community Development CAO (via Risk Management) ATTESTED County Counsel PHIL BATCHELOR, CLERK OF Auditor (c/o Nona) THE BOARD OF SUPERVISORS Contractor AND COUNTY ADMINISTRATOR BY , DEPUTY DSAh sral Vbondaud.bos - ,„; I i ', j i i '. i I .I '� i i i + i I • I I� i /.' • 1 ' CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 1993 AND 1992 1 CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND Financial Statements For the Years Ended June 30, 1993 and 1992 1 Table of Contents ' Independent Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Financial Statements: Combined Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Combined Statements of Revenues, Expenses and Changes in Retained Earnings . . . . . . . . . . . . 4 Combined Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 ' Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ' Supplementary Information: Combining Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ' Combining Statements of Revenues, Expenses and Changes in Retained Earnings . . . . . . . . . . . 12 1 This Page Left Blank Intentionally AjAZE & ASSOCIATES ACCOUNTANCY CORPORATION 1670 Riviera Avenue -Suite 100 Walnut Creek, California 94596 (510) 930-0902 • FAX 930-0135 ' INDEPENDENT AUDITOR'S REPORT ' To the Board of Supervisors of Contra Costa County ' Wehave audited the financial statements of the Contra Costa County 1983 Mortgage Revenue Bond Fund(Fund) as of and for the year ended June 30, 1993, as listed in the table of contents. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements ' based on our audit. The financial statements as of June 30, 1992 were audited by other auditors,whose report dated September 18, 1992 was unqualified. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance as to 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.. ' In our opinion, the financial statements referred to above present fairly in all material respects the financial position of the Fund at June 30, 1993,and the results of its operations and cash flows for the year then ended,in ' conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying Supplementary Information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in our audit of the financial statements, and in our opinion is fairly stated in all ' material respects when considered in relation to the financial statements taken as a whole. L August 19, 1993 A Professional Corporation ' CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND ' COMBINED BALANCE SHEETS June 30 1993 1992 ASSETS ' Investments (Note 2) $1,084,589 $1,401,400 ' Mortgage loans receivable (Note 3) 6,615,860 10,685,604 Interest receivable 16,634 18,728 ' Matured mortgage loans and interest receivable from mortgage servicers (Note 3) 1,396 10,954 Investment in real estate (Note 1) 93,942 Total Assets $7,718,479 $12,210,628 LIABILITIES ' Mortgage revenue bonds -net(Note 4) $6,634,751 $11,098,494 Interest payable 51,807 86,711 Accrued liabilities 1,234 1,316 Total Liabilities 6,687,792 11,186,521 RETAINED EARNINGS Reserved for debt service 1,030,687 1,024,107 Total Liabilities and Retained Earnings $7,718,479 $12,210,628 ' See accompanying notes to financial statements ' 3 CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND COMBINED STATEMENTS OF REVENUES, EXPENSES ' AND CHANGES IN RETAINED EARNINGS For The Years Ended June 30 i 1993 1992 REVENUES Interest from mortgage loans $865,978 $1,232,468 t Interest from investments 169,735 176,001 , Total Revenues 1,035,713 1,408,469 EXPENSES ' Interest and amortization 904,899 1,281,367 Adminstrative 22,852 24,801 Mortgage servicing fees 22,455 32,368 ' Insurance 2,042 3,160 ' Total Expenses 952,248 1,341,696 OPERATING INCOME 83,465 66,773 , EXTRAORDINARY LOSS ON EARLY REDEMPTION OF BONDS (Note 4) (76,885) (69,157) ' NET INCOME (LOSS) 6,580 (2,384) Retained earnings at beginning of year 1,024,107 1,026,491 Retained earnings at end of year $1,030,687 $1,024,107 See accompanying notes to financial statements 4 ' CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND COMBINED STATEMENTS OF CASH FLOWS ' For The Years Ended June 30 1993 1992 CASH FLOWS FROM OPERATING ACTIVITIES Mortgage loan collections: ' Principal $3,977,147 $3,688,945 Interest 874,189 1,264,734 Proceeds from sale of real estate 93,943 ' Cash paid for operating expenses 46,512 (69,192) Cash Flows From Operating Activities 4,991,791 4,884,487 ' CASH FLOWS FROM INVESTING ACTIVITIES Interest collected from investments 171,829 177,486 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Mortgage revenue bond payments: ' Principal (4,555,000) (3,760,000) Interest (925,431) (1,288,869) Cash Flows From Noncapital ' Financing Activities (5,480,431) (5,048,869) Net Cash Flows (316,811) 13,104 ' Investments at beginning of year 1,401,400 1,388,296 Investments at end of year $1,084,589 $1,401,400 RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating Income $83,465 $66,773 Adjustments to reconcile operating income to cash flows from operating activities: Interest expense 890,527 1,260,124 Amortization of bond discount and issuance costs 14,372 21,243 Interest from investments (169,735) (176,001) Changes in asset and liabilities: ' Decrease in mortgage loans receivable 4,069,743 3,688,945 (Increase) decrease in mature mortgage loans and related interest receivable 9,558 37,892 ' (Increase) decrease in investment in real estate 93,943 (13,046) Increase (decrease) in accrued liabilities (82) (1,443) ' Total adjustments 4,908,326 4,817,714. Cash Flows From Operating Activities $4,991,791 $4,884,487 ' See accompanying notes to financial statements 5 CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND Notes to Financial Statements NOTE I -SIGNIFICANT ACCOUNTING POLICIES Operations-The Contra Costa County 1983 Mortgage Revenue Bond Fund(Fund)was established under the California Health and Safety Code and a June 1,1983 indenture(Indenture)agreement between Contra Costa County (County)and Bank of America(Trustee)for the purpose of providing mortgage loans on owner occupied single family dwellings from the proceeds of Mortgage Revenue Bonds(1983 Bonds)issued by the County. The County is the administrator of the Fund,overseeing the Trustee and mortgage servicers and maintaining the financial records of the Fund. ReportingEntity- The accompanying financial statements include only the operations of the Fund,which is not considered an integral part of the County. Bads of Accounting- The Fund's financial statements have been prepared on the accrual method of accounting under which revenues are recorded when earned and expenses are recorded when incurred. Cash and Equivalents are stated at cost and consist of bank deposits,money market funds or highly liquid securities which are readily.convertible into cash. 1nvc,stmcntinR=1&tatc included foreclosed real estate recorded at the outstanding mortgage loan balance as of the date of foreclosure. During year end June 30, 1993 the real estate was sold for cash at no gain or loss to the Fund. BdndEVscountandLvsuancv Costs represent costs of issuing the Mortgage Revenue Bonds. These costs are netted against and amortized over the term of the Mortgage Revenue Bonds,using the effective interest rate method. Rocla%siAmdons-For the year ended June 30, 1993,certain account classifications have been changed to improve Jinancial statement presentation. For comparative purposes, prior year balances have been reclassified to conform with the 1992-93 presentation. NOTE 2-INVESTMENTS Investments at June 30, 1993 and 1992 comprise: June 30 Description 1993 1992 Investment Agreement $630,545 $1,030,169 Money Market Funds 454,044 371,231 Total Cash and Equivalents $1,084,589 $1,401,400 6 ' CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND Notes to Financial Statements NOTE 2-INVESTMENTS (Continued) The Trustee and First National Bank of Saint Paul,Minnesota,have Investment Agreements which require the Bank to pay interest at rates of from 7% to 9.14%, compounded semiannually, each May 13 and November 13 until December 1,2105. The Investment Agreements may be terminated earlier by retiring all outstanding Mortgage Revenue Bonds or by withdrawing the remaining moneys. The Investment Agreements are collateralized with U.S.Treasury Securities held by the Bank. ' NOTE 3 -MORTGAGE LOANS RECEIVABLE ' The Mortgage Loans Receivable are secured by first deeds of trust on the underlying property,bear interest at 9.5% per year, are due thirty years from the date issued and are guaranteed by private mortgage ' insurance. Details of the Mortgage Loans Receivable outstanding at June 30, 1993 are as follows: Current $6,608,370 Collections delinquent over 60 days 7,490 Total $6,615,860 The County and Trustee have signed agreements with several Mortgage Servicers which require the ' Mortgage Servicers to collect mortgage loan receipts when due and to remit such receipts to the Trustee; maintain private mortgage insurance,standard hazard insurance and earthquake insurance,if available,on the underlying property;and to enforce foreclosure proceedings,if necessary,to collect delinquent loans_ NOTE 4- 1983 MORTGAGE REVENUE BONDS The outstanding balance of the 1983 Bonds at June 30, 1993 and 1992 was: ' June 30 ' Bonds Maturing June 1: Bond Type Interest Rate 1993 1992 1993 Serial 8.6% $160,000 ' 1994 Serial 8.7% $100,000 170,000 1995 Serial 8.8% 115,000 185,000 2001 Tenn 9.125% 925,000 1,530,000 ' 2015 Term 9.25% 5,605,000 9,255,000 Total principal amount outstanding 6,745,000 11,300,000 Less unamortized bond discount and issue costs (110,249) (201,506) Mortgage Revenue Bonds-Net $6,634,751 $11,098,494 7 CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND Notes to Financial Statements NOTE 4-MORTGAGE REVENUE BONDS (Continued) Investments,mortgage loan collections and Fund revenues are pledged to repay principal and interest on the 1983 Bonds, If the assets available in the Fund are not sufficient to repay the bonds in full,principal and accrued interest will be paid on a pro rata basis in accordance with the provisions of the Indenture,after the payment of expenses necessary to protect the interests of the bondholders. Principal payments are due each June I and interest is due each June I and December 1. Tenn Bonds maturing June 1,2001 and June 1,2015 are subject to mandatory redemption,at par,beginning June 1,199S and June 1,2001,respectively. The Indenture requires that prepayments of Mortgage Loans must be used to redeem 1983 Bonds at par. When Bonds are redeemed early a portion of unamortized bond discount and issue costs are expensed and recorded as an extraordinary loss on early redemption of bonds. During the years ended June 30,1993 and 1992, Mortgage Loan prepayments were used to redeem$4,430,000 and$3,575,000,respectively,of 1983 Bonds at par prior to their scheduled maturity,which resulted in extraordinary losses on early redemption of bonds of$76,885 and$69,157,respectively. 8 ' SUPPLEMENTAL INFORMATION As provided in the Indenture, the following funds have been established and are maintained by the Trustee: RevenueFund-All revenues except interest from cash and equivalents are deposited in this fund. Resources in this fund are transferred to the remaining funds as needed. CapitalRe meFund-Monies are used to make up any deficiency in the Non-mortgage Investment Income ' Fund,Interest Fund or Principal Fund and for paying fees and expenses of the County which do not exceed certain limits outlined in the Indenture. Non mortgage Investment Income Fund- All profits derived from cash and equivalents in any fund established under the Indenture are to be deposited into this fund. ' Principal Fund- Monies are used to repay the principal of the Mortgage Revenue Bonds. Interest Fund- Monies are used to pay the interest on the bonds. Redemption Fund- Monies are used to redeem the Mortgage Revenue Bonds prior to their scheduled ' maturity. 9 CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND COMBINING BALANCE SHEETS ' Non-mortgage ' Revenue Capital Investment Principal Fund Reserve Fund Income Fund Fund ASSETS Investments $309,432 $341,931 Mortgage loans receivable 6,615,860 Interest receivable $16,634 , Mature mortgage loans and interest , receivable from mortgage servicers 1,396 Investment in real estate , Total Assets $6,926,688 $341,931 $16,634 LIABILITIES ' Mortgage revenue bonds - net $6,634,751 Interest payable Accrued liabilities 1,234 ' Total Liabilities 6,635,985 ' RETAINED EARNINGS Reserved for debt service 290,703 $341,931 $16,634 , Total Liabilities and Retained Earnings $6,926,688 $341,931 $16,634 ' 10 , i ' June 30 Interest Redemption Fund Fund 1993 1992 ' $433,226 $1,084,589 $1,401,400 6,615,860 10,685,604 ' 16,634 18,728 ' 1,396 10,954 ' 93,942 $433,226 $7,718,479 $12,210,628 $6,634,751 $11,098,494 $51,807 51,807 86,711 i1,234 1,316 ' 51,807 6,687,792 11,186,521 ' (51,807) $433,226 1,030,687 1,024,107 $433,226 $7,718,479 $12,210,628 i ' 11 CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND COMBINING STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS Non-mortgage Revenue Capital Investment Principal Interest , Fund Reserve Fund Income Fund Fund Fund REVENUES Interest from mortgage loans $865,978 Interest from investments $169,735 ' Total Revenues 865,978 169,735 , EXPENSES Interest 14,372 $890,527 ' Administrative 22,852 , Mortgage servicing fees 22,455 Insurance 2,042 , Total Expenses 61,721 890,527 ' OPERATING INCOME (LOSS) 804,257 169,735 (890,527) INTERFUND TRANSFERS IN 4,832,521 $125,000 925,431 , INTERFUND TRANSFERS (OUT) (5,678,265) ($105,696) (171,829) (125,000) EXTRAORDINARY LOSS ON EARLY ' REDEMPTION OF BONDS (76,895) NET INCOME (LOSS) (118,372) (105,696) (2,094) 34,904 ' Retained earnings at beginning of year 409,075 447,627 18,728 (86,7111 Retained earnings at end of year $290,703 $341,931 $16,634 ($51,807) 12 ' For the Years Ended June 30 Redemption Fund 1993 1992 ' $865,978 $1,232,468 ' 169,735 176,001 1,035,713 1,408,469 904,899 1,281,367 22,852 24,801 22,455 32,368 2,042 3,160 ' 952,248 1,341,696 83,465 66,773 ' $4,627,838 10,510,790 9,036,133 (4,430,000) (10,510,790) (9,036,133) (76,885) (69,157) ' 197,838 6,580 (2,384) ' 235,388 1,024,107 1,026,491 $433,226 $1,030,687 $1,024,107 ' 13 CONTRA COSTA COUNTY 1983 MORTGAGE REVENUE BOND FUND FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 1993 AND 1992 AN ZE & J ® A SSO CI "®! TES ES ACCOUNTANCY CORPORATION r� CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND FINANCIAL STATEMENTS FOR THE YEARS ENDED -� JUNE 30, 1993 AND 1992 71J A l J i J .i I d J AZE & 1%o,%ASS0lA TES ACCOUNTANCY CORPORATION i i ! CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND FINANCIAL STATEMENTS ! FOR THE YEARS ENDED JUNE 30, 1993 AND 1992 i ! . 1 i i 1 1 1 This Page Left Blank Intentionally 1 1 1 - 1 1 1 1 CONTRA COSTA COUNTY ' 1985 MORTGAGE REVENUE BOND FUND Financial Statements For the Years Ended June 30, 1993 and 1992 Table of Contents ' P-a= tIndependent Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Financial Statements: ' Combined Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Combined Statements of Revenues,Expenses ' and Changes in Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Combined Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Supplementary Information: Combining Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 1 Combining Statements of Revenues,Expenses and Changes in Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1 1 1 i 1 1 This Page Left Blank Intentionally 1 . 1 i 1 i 1 1 1 1 1 1 1 AJAZE & ASSOCIATES ACCOUNTANCY CORPORATION 1670 Riviera Avenue-Suite 100 Walnut Creek, California 94596 (510) 930-0902 • FAX 930-0135 ' INDEPENDENT AUDITOR'S REPORT ' To the Board of Supervisors of Contra Costa County We have audited thefinancial statements of theContra Costa County 1985 Mortgage Revenue Band Fund(Fund) as of and for the year ended June 30, 1993,as listed in the table of contents. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements ' based on our audit. The financial statements as of June 30, 1992 were audited by other auditors,whose report dated September 18, 1992 was unqualified. ' We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance as to 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. In our opinion, the financial statements referred to above present fairly in all material respects the financial position of the Fund at June 30, 1993,and the results of its operations and cash flows for the year then ended,in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying Supplementary Information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in our audit of the financial statements, and in our opinion is fairly stated in all ' material respects when considered in relation to the financial statements taken as a whole. ' August 19, 1993 A Professional Corporotion This Page Left Blank Intentionally 1 1 ' CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND COMBINED BALANCE SHEETS June 30 ' 1993 1992 ASSETS ' Investments (Note 2) $684,303 $761,359 Mortgage loans receivable (Note 3) 2,245,918 5,254,776 Interest receivable 984 2,893 Matured mortgage loans and interest receivable from mortgage servicers (Note 3) 110,053 17,630 ' Prepaid insurance 6,014 20,636 Total Assets $3,047,272 $6,057,294 LIABILITIES ' . Mortgage revenue bonds (Note 4) $1,332,140 $4,102,839 ' Interest payable 917,654 1,162,295 Accrued liabilities 16,986 19,534 ' Total Liabilities 2,266,780 5,284,668 ' RETAINED EARNINGS Reserved for debt service 780,492 772,626 Total Liabilities and Retained Earnings $3,047,272 $6,057,294 ' See accompanying notes to financial statements ' 3 CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND COMBINED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Years Ended June 30 1993 1992 REVENUES Interest from mortgage loans $385,578 $795,976 Interest from investments 84,698 116,316 Total Revenues 470,276 912,292 EXPENSES Interest 376,597 724,847 Administrative 12,469 18,089 Mortgage servicing fees 8,683 17,209 Insurance 26,589 40,556 Total Expenses 424,338 800,701 OPERATING INCOME 45,938 111,591 EXTRAORDINARY LOSS ON EARLY REDEMPTION OF BONDS (Note 4) (38,072) (82,137) NET INCOME 7,866 29,454 Retained earnings at beginning of year 772,626 743,172 Retained earnings at end of year $780,492 $772,626 See accompanying notes to financial statements 4 CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND ' COMBINED STATEMENTS OF CASH FLOWS For The Years Ended June 30 ' 1993 1992 ' CASH FLOWS FROM OPERATING ACTIVITIES Mortgage loan collections: Principal $2,915,644 $3,385,232 Interest 386,370 745,039 ' Cash paid for operating expenses (35,668) (64,816) Cash Flows From Operating Activities 3,266,346 4,065,455 ' CASH FLOWS FROM INVESTING ACTIVITIES Interest collected from investments 86,607 118,963 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Mortgage revenue bond payments: ' Principal (2,814,060) (3,862,567) Interest (615,949) (778,186) ' Cash Flows From Noncapital Financing Activities (3,430,009) (4,640,753) ' Net Cash Flows (77,056) (456,335) Investments at beginning of year 761,359 1,217,694 Investments at end of year $684,303 $761,359 ' RECONCILIATION OF OPERATING INCOME TO CASH FLOWS FROM OPERATING ACTIVITIES Operating Income $45,938 $111,591 Adjustments to reconcile operating income to cash flows from operating activities: Interest expense 371,309 714,471 Amortization of bond discount and issuance costs 5,290 10,376 ' Amortization of discount on mortgage loans receivable (5,912) (71,301) Interest from investments (84,698) (116,316) Changes in asset and liabilities: Decrease in mortgage loans receivable 3,014,770 3,385,232 (Increase) decrease in matured mortgage loans and related interest receivable (92,422) 19,648 (Increase) decrease in prepaid insurance 14,622 17,429 ' Increase (decrease) in accrued liabilities (2,549) (5,675) Total Adjustments 3,220,410 3,953,864 ' Cash Flows From Operating Activities $3,266,348 $4,065,455 ' See accompanying notes to financial statements 5 CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND ' Notes to Financial Statements NOTE 1 -SIGNIFICANT ACCOUNTING POLICIES Qpmdons-The Contra Costa County 1985 Mortgage Revenue Bond Fund(Fund)was established under , the California Health and Safety Code and an April 1, 1985 Indenture Agreement (Indenture) between Contra Costa County (County) and First Interstate Bank, Inc. (Trustee) for the purpose of providing , mortgage loans on owner occupied single family dwellings from the proceeds of Mortgage Revenue Bonds (1985 Bonds)issued by the County. The County is the administrator of the Fund,overseeing the Trustee and mortgage servicers and maintaining the financial records of the Fund. , RepoitingEntity- The accompanying financial statements include only the operations of the Fund,which ' is not considered a component unit or integral part of the County. Basis of Accounting- The Fund's financial statements have been prepared on the accrual method of accounting,under which revenues are recorded when earned and expenses are recorded when incurred. ' Investments are stated at cost and consist of money market funds or investment agreements which are , readily convertible into cash. Bond DiscountandlssuanccCosts represent costs of issuing the Mortgage Revenue Bonds. These costs ' are netted against.the principal balance of the Mortgage Loans and amortized over their term. MortgageLoan Discounts represent costs of making mortgage loans through developers of homes. These , costs are netted against the principal balances of the mortgage loans and amortized over their term. Redassi6rations-For the year ended June 30, 1993,certain account classifications have been changed to . improve financial statement presentation. For comparative purposes, prior year balances have been , reclassified to conform with the 1992-93 presentation. NOTE 2-INVESTMENTS Investments at June 30, 1993 and 1992 comprised: ' June 30 ' Description 1993 1992 Investment Agreements $677,324 $548,152 ' Money Market Funds 6,979 213,207 Total Investments $684,303 $761,359 ' The Trustee and Zions First National Bank have Investment Agreements which require the Bank to pay ' interest at rates of 8%to 9.52%,compounded semiannually,each May 1 and November 1 until May 1,2018. The Investment Agreements may be terminated earlier by retiring all outstanding 1985 Bonds or by withdrawing the remaining moneys. The Investment Agreements are collateralized by $58,032 principal , amount of certificates of deposit and$619,292 principal amount of money market funds investing in foreign securities. 6 , CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND Notes to Financial Statements NOTE 3 -MORTGAGE LOANS ' Mortgage Loans are secured by first deeds of trust on the underlying property,bear interest at 10.15%,are due thirty years from the date issued and are guaranteed by private mortgage insurance. Details of the Mortgage Loans outstanding at June 30, 1993 are as follows: Current $2,242,944 Collections delinquent over 60 days 2,974 Total $2,245,918 The County and Trustee have signed agreements with several Mortgage Servicers which require the Mortgage Servicers to collect mortgage loan receipts when due and to remit such receipts to the Trustee; maintain private mortgage insurance,standard hazard insurance and earthquake insurance,if available,on the underlying property and to enforce foreclosure proceedings,if necessary,to collect delinquent loans. ' NOTE 4-MORTGAGE REVENUE BONDS ' The outstanding balance of 1985 Bonds at June 30, 1993 and 1992 was: ' June 30 Interest Maturity Dates Bond Type Rate 1993 1992 1996-2001 Municipal Multiplier 9.4-9.75% $129,262 808,323 ' 2011 Term 9.125% 670,000 2,805,000 2018 Municipal Multiplier 10.625% 575,976 575,976 ' Total principal amount outstanding 1,375,238 4,189,299 Less unamortized bond discount and issue costs (43,098) (86,460) Mortgage Revenue Bonds-Net $1,332,140 $4,102,839 Principal payments are due each May 1 and November 1. Interest on the Term Bonds is due each May 1 and November 1. The Municipal Multiplier Bonds bear interest from 9.4% to 10.625%; interest is compounded semiannually each May 1 and November 1 but is not payable until maturity or redemption. ' 1985 Bonds maturing on May 1, 2011 and May 1, 2018 are subject to mandatory redemption, at par, beginning May 1,2005 and May 1,2011,respectively. Interest accrued on Municipal Multiplier Bonds is included as interest payable in the accompanying financial statements. 7 CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND Notes to Financial Statements NOTE 4-MORTGAGE REVENUE BONDS(Continued) The Indenture requires thatprepayments of Mortgage Loans must be used to redeem the 1985 Bonds at par. ' Q When bonds are redeemed early a portion of unamortized bond discount and issue costs are expensed and recorded as an extraordinary loss on early redemption of bonds. During the years ended June 30, 1993 and ' 1992, Mortgage Loan prepayments were used to redeem$3,171,884 and$3,557,567, respectively,of 1985 Bonds at par prior to their scheduled maturity,which resulted in extraordinary losses on early redemption of bonds of$38,072 and$82,137,respectively. t Investments,mortgage loan collections and Fund revenues are pledged to repay principal and interest on ' the 1985 Bonds. If the assets available in the Fund are not sufficient to repay the bonds in full,principal and accrued interest will be paid on a pro rata basis in accordance with the provisions of the Indenture,after the payment of expenses necessary to protect the interests of the bondholders. ' 8 SUPPLEMENTAL INFORMATION ' As provided in the Indenture,the following funds have been established and are maintained by the Trustee: Program Expenw Fund-Monies are used to pay administrative expenses. ' RevenueFimd-All revenues except interest from cash and equivalents are deposited in this fund. Resources in this fund are transferred to the remaining funds as needed. ' CapitalReserve Fund-Monies are used to make up any deficiency in the Interest Fund or Principal Fund and for paying fees and expenses of the County which do not exceed certain limits outlined in the Indenture. ' Non mortgage Investment Income Fund- All profits derived from cash and equivalents in any fund established under the Indenture are to be deposited into this fund. ' PrrncrpalFund-Monies are used to pay the principal of the Mortgage Revenue Bonds. IntemstFund-Monies are used to pay the interest on the Mortgage Revenue Bonds. Redemption Fund- Monies are used to redeem the Mortgage Revenue Bonds prior to their scheduled ' maturity. ' 9 CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND COMBINING BALANCE SHEETS Program Non-mortgage Expense Revenue Capital Investment ' Fund Fund Reserve Fund Income Fund ASSETS ' Investments $86 $626,170 $58,032 Mortgage loans receivable 2,245,918 ' Interest receivable $984 , Mature mortgage loans and interest receivable from mortgage servicers 110,053 ' Prepaid insurance 6,014 Total Assets $6,100 $2,982,141 $58,032 $984 LIABILITIES , Mortgage revenue bonds $1,332,140 Interest payable Accrued liabilities $1,167 15,819 , Total Liabilities 1,167 1,347,959 RETAINED EARNINGS ' Reserved for debt service 4,933 1,634,182 $58,032 $984 ' Total Liabilities and Retained Earnings $6,100 $2,982,141 $58,032 $984 10 1 ' June 30 Principal Interest Redemption ' Fund Fund Fund 1993 1992 ' $15 $684,303 $761,359 2,245,918 5,254,776 984 2,893 110,053 17,630 6,014 20,636 ' $15 $3,047,272 $6,057,294 $1,332,140 $4,102,839 ' $917,654 917,654 1,162,295 16,986 19,534 ' 917,654 2,266,780 5,284,668 (917,654) $15 780,492 772,626 ' $15 $3,047,272 $6,057,294 t 1 11 CONTRA COSTA COUNTY 1985 MORTGAGE REVENUE BOND FUND COMBINING STATEMENTS OF REVENUES, EXPENSES , AND CHANGES IN RETAINED EARNINGS Program Non-mortgage Expense Revenue Capital Investment Principal ' Fund Fund Reserve Fund Income Fund Fund REVENUES Interest from mortgage loans $385,578 Interest from investments $84,698 Total Revenues 385,578 84,698 i EXPENSES Interest 5,288 Administrative $12,469 ' Mortgage servicing fees 8,683 Insurance 26,589 Total Expenses 47,741 5,288 ' OPERATING INCOME (LOSS) (47,741) 380,290 84,698 INTERFUND TRANSFERS IN 33,850 2,962,771 $30,086 $40,000 , INTERFUND TRANSFERS (OUT) (3,493,900) (65,058) (83,714) (40,000) EXTRAORDINARY LOSS ON EARLY ' REDEMPTION OF BONDS (38,072) NET INCOME (LOSS) (13,891) (188,911) (34,972) 984 , Retained earnings at beginning of year 18,824 1,823,093 93,004 ' Retained earnings at end of year $4,933 $1,634,182 $58,032 $984 12 i For the Years Ended June 30 ' Interest Redemption Fund Fund 1993 1992 $385,578 $795,976 84,698 116,316 470,276 912,292 I $371,309 376,597 724,847 12,469 18,089 8,683 17,209 26,589 40,556 ' 371,309 424,338 800,701 (371,309) 45,938 111,591 ' 615,950 $3,171,899 6,854,556 8,791,841 (3,171,884) (6,854,556) (8,791,841) i (38,072) (82,137) 244,641 15 7,866 29,454 ' (1,162,295) 772,626 743,172 ($917,654) $15 $780,492 $772,626 13 1 1 1 1 1 This Page Left Blank Intentionally ! ! i ! 1 1 1 1 CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND ' FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 1993 AND 1992 1 CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND Financial Statements For the Years Ended June 30, 1993 and 1992 Table of Contents Eau Independent Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Financial Statements: Combined Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Combined Statements of Revenues,Expenses and Changes in Retained Earnings . . . . . . . . . . . . 4 Combined Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Supplementary Information: Combining Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Combining Statements of Revenues,Expenses and Changes in Retained Earnings . . . . . . . . . . . 12 This Page Left Blank Intentionally AJAZE & ASSOCIATES ACCOUNTANCY CORPORATION 1670 Riviera Avenue -Suite 100 Walnut Creek, California 94596 (510) 930-0902 • FAX 930-0135 INDEPENDENT AUDITOR'S REPORT To the Board of Supervisors of Contra Costa County We have audited the financial statements of the Contra Costa County Home Mortgage Finance Authority,1991 Taxable Home Mortgage Revenue Refunding Bond Fund(Fund)as of and for the year ended June 30, 1993,as listed in the table of contents. These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audit.The financial statements as of June 30, 1992 were audited by other auditors,whose report dated September 18, 1992 was unqualified. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance as to 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. In our opinion, the financial statements referred to above present fairly in all material respects the financial position of the Fund at June 30, 1993,and the results of its operations and cash flows for the year then ended,in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying Supplementary Information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in our audit of the financial statements, and in our opinion is fairly stated in all material respects when considered in relation to the financial statements taken as a whole. August 19, 1993 l _ 1 A Professional Corporation 1 i i 1 This Page Left Blank Intentionally 1 . 1 1 i i i i i i 1 ' CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY ' 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND COMBINED BALANCE SHEETS June 30 1993 1992 ' ASSETS Investment agreement(Note 2) $1,341,386 $4,164,257 Mortgage loans receivable (Note 3) 3,370,639 5,768,960 Interest receivable 21,703 67,899 Matured mortgage loans and interest 1 receivable from mortgage servicers (Note 3) 13,536 708 Prepaid administrative fees 5,757 23,947 Total Assets $4,753,021 $10,025,771 ' LIABILITIES Mortgage revenue refunding bonds (Note 4) $2,953,985 $8,186,902 Interest payable 840,358 880,637 Accrued liabilities 2,333 Total Liabilities 3,794,343 9,069,872 RETAINED EARNINGS ' Reserved for debt service 958,678 955,899 Total Retained Earnings 958,678 955,899 Total Liabilities and Retained Earnings $4,753,021 $10,025,771 ' See accompanying notes to financial statements 3 CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY ' 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND COMBINED STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Years Ended June 30 ' 1993 1992 REVENUES Interest from mortgage loans $511,636 $959,596 Interest from investment agreement 113,567 162,237 Total Revenues 625,203 1,121,833 ' EXPENSES ' Interest 535,771 1,059,156 Administrative 49,598 42,231 ' Mortgage servicing fees 11,976 21,621 ' Insurance. 25,079 88,486 Total Expenses 622,424 1,211,494 ' OPERATING INCOME (LOSS) 2,779 (89,661) Retained earnings at beginning of year 955,899 1,045,560 Retained earnings at end of year $958,678 $955,899 , See accompanying notes to financial statements ' 4 ' CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND COMBINED STATEMENTS OF CASH FLOWS ' For The Years Ended June 30 1993 1992 CASH FLOWS FROM OPERATING ACTIVITIES ' Mortgage loan collections: Principal $2,397,142 $6,246,851 Interest 499,985 958,889 Cash paid for operating expenses (70,796) (173,952) ' Cash Flows From Operating Activities 2,826,331 7,031,788 CASH FLOWS FROM INVESTING ACTIVITIES Interest collected from investment agreement 159,765 94,338 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Mortgage revenue refunding bond payments: Principal (5,226,812) (3,639,948) Interest (582,155) (184,139) Cash received from sale of bonds and registered coupons 12,055,027 Cash assumed from 1984 issue 421,071 Cash paid for 1984 escrow fund (11,391,323) Cash paid for costs of issuance (222,557) Cash Flows From Noncapital Financing Activities (5,808,967) (2,961,869) Net Cash Flows (2,822,871) 4,164,257 Investment agreement at beginning of year 4,164,257 Investment agreement at end of year $1,341,386 $4,164,257 RECONCILIATION OF OPERATING INCOME (LOSS) ' TO CASH FLOWS FROM OPERATING ACTIVITIES Operating Income (Loss) $2,779 ($89,661) Adjustments to reconcile operating income ' (loss) to cash flows from operating activities: Interest expense 541,875 1,064,776 Amortization of registered coupons premium (99,057) (91,205) Amortization of bond discount and issuance costs 92,952 85,585 Interest from investment agreement (113,568) (162,237) Changes in assets and liabilities: Decrease in mortgage loans receivable 2,398,321 6,246,851 (Increase)decrease in mature mortgage ' loans and related interest receivable (12,829) (707) (Increase)decrease in prepaid administrative fees 18,191 (23,947) Increase (decrease) in accrued liabilities (2,333) 2,333 ' Total Adjustments 2,823,552 7,121,449 Cash Flows From Operating Activities $2,826,331 $7,031,788 ' See accompanying notes to financial statements 5 CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND Notes to Financial Statements NOTE 1 -SIGNIFICANT ACCOUNTING POLICIES ' Operations-The Contra Costa County Home Mortgage Finance Authority(Authority)was created under ' the California Government Code by a May 1, 1984 joint exercise of powers agreement between Contra Costa County(County)and the City of Antioch. In 1984, the Authority issued the 1984 Home Mortgage Revenue Bonds (1984 Bonds) for the purpose of providing home mortgage loans in the County. These ' Bonds were defeased using the proceeds of Taxable Home Mortgage Revenue Refunding Bonds issued July 1, 1991 (1991 Bonds)and separate Registered Coupons,which entitle those bond holders who purchased them to additional 1991 Bond interest payments. ' The Contra Costa County Home Mortgage Finance Authority 1991 Taxable Home Mortgage Revenue Refunding Bond Fund(Fund)was established under the California Health and Safety Code and a July 1, , 1991 Indenture agreement (Indenture) between the County and First Trust California (Trustee). The County is the administrator of the Fund,overseeing the Trustee and mortgage servicers and maintaining the financial records of the Fund. , ReportingEntily-.The accompanying financial statements include only the operations of the Fund,which is not considered a component unit or integral part of the County. I Basis ofAcaounting - The Fund's financial statements have been prepared on the accrual method of accounting,under which revenues are recorded when earned and expenses are recorded when incurred. ' InvestmentAgrmmentis stated at cost and is readily convertible into cash. Registercd Coupon Premium and Bond Discount and Lssuance Costs represent a premium collected from the sale of Registered Coupons and the costs of issuing the 1991 Bonds. These costs are netted against the outstanding principal balance of the 1991 Bonds and amortized over their term. ' RerJasssi6cations-For the year ended June 30, 1993,certain account classifications have been changed to improve financial statement presentation. For comparative purposes, prior year balances have been ' reclassified to conform with the 1992-93 presentation. NOTE 2-INVESTMENT AGREEMENT ' Coincident with the issuance of the 1991 Bonds on July 1, 1991,the Trustee and Berkshire Hathaway,Inc. signed an Investment Agreement under which Berkshire Hathaway pays interest at 6.4%, compounded semiannually each March 1 and September 1 until March 1, 2009. The Investment Agreement may be terminated earlier by retiring all outstanding Mortgage Revenue Refunding Bonds or by withdrawing the remaining moneys. '. Under the terms of the Investment Agreement,the Fund may deposit and withdraw amounts as required; all amounts on deposit earn interest. , 6 ' CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND ' Notes to Financial Statements ' NOTE 3 - MORTGAGE LOANS Mortgage Loans are secured by first deeds of trust on the underlying property,bear interest at 10.9%,are ' due thirty years from the date issued and are guaranteed by private mortgage insurance. Details of the Mortgage Loans outstanding at June 30, 1993 are as follows: ' Current $3,366,264 Collections delinquent over 60 days 4,375 ' Total $3,370,639 The County and Trustee have signed agreements with several Mortgage Servicers which require the Mortgage Servicers to collect mortgage loan receipts when due and to remit such receipts to the Trustee, maintain private mortgage insurance,standard hazard insurance and earthquake insurance,if available,on the underlying property and to enforce foreclosure proceedings,if necessary,to collect delinquent loans. NOTE 4-MORTGAGE REVENUE REFUNDING BONDS ' A. 1991 Bonds ' On July 1, 1991 the Authority issued 1991 Taxable Home Mortgage Revenue Refunding Bonds in the original principal amount of$11,817,856. At June 30, 1993 and 1992,outstanding 1991 Bonds comprised: ' Principal Balance,June 30 Maturity Date Interest Rate 1993 1992 ' September 1,2001 8.6% $126,179 $52352,991 March 1,2009 9.5% 228242917 2,8242917 1 Total Principal Amount Outstanding 2,951,096 8,177,908 ' Deduct unamortized bond discount and issue costs (44,019) (136,971) Add unamortized portion of premium from Registered Coupons 46,908 145,965 ' Mortgage Revenue Refunding Bonds-Net $2,953,985 $8,186,902 7 CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND Notes to Financial Statements , NOTE 4-MORTGAGE REVENUE REFUNDING BONDS (Continued) , Interest on the 1991 Bonds is compounded semiannually each March 1 and September 1,but is not payable until maturity or redemption. ' The investment agreement,mortgage loan receipts and Fund revenues are pledged to repay principal and interest on the 1991 Bonds. ' I3 Registerad Coupons Registered Coupons due March 1,2001 and 2009 were issued in conjunction with the 1991 Bonds. These ' Coupons entitle the holder to receive additional interest on the 1991 Bonds. Interest is compounded semiannually at 1.05%for Registered Coupons maturing March 1,2001 and 1.95%for Registered Coupons ' maturing March 1,2009 on the unpaid principal and interest on the 1991 Bonds. In addition,accumulated unpaid amounts of accrued interest evidenced by the Registered Coupons bear interest at the rate of 10.55% compounded semiannually. C. Rademption Provisions 991 Bonds and Registered Coupons are subject to mandato redemption on an September ' Outstanding 1 g p J mandatory P Y P 1 or March 1,from deposits in the Revenue Fund in excess of amounts needed to pay program expenses and , required to be deposited into the Reserve Fund. However, all 1991 Bonds and accrued interest must be redeemed prior to the redemption of any Registered Coupons. If assets available in the Fund are not sufficient to repay the 1991 Bonds.in full, principal and accrued , interest is to be paid on a pro rata basis in accordance with the provisions of the Indenture, after the payment of expenses necessary to protect the interest of the bondholders. ' The Indenture requires that prepayments of Mortgage Loans received by the Trustee must be used to redeem 1991 Bonds on the next June 1 at par. During the years ended June 30, 1993 and 1992, Mortgage Loans prepayments were used to redeem$5,808,967 and$3,639,948,respectively,of 1984 Bonds at par prior to their scheduled maturity. D I)Icfeasanac of 1994 Bonds , A portion of the proceeds of the 1991 Bonds was used to defease the Authority's 1984 Bonds. These , proceeds were used to purchase U.S. Government Securities,which were deposited in an irrevocable trust with an escrow agent to provide for all future debt service on the 1984 Bonds,which are considered to be defeased. ' 8 SUPPLEMENTAL INFORMATION As provided in the Indenture,the following funds have been established and are maintained by the Trustee: Program Expense Fund-Monies are used to pay of administrative expenses. RevenueFund-All revenues except interest from cash and equivalents are deposited in this fund. Resources in this fund are transferred to the remaining funds as needed. Reserve Fund-Monies are used to make up any deficiency in the Bond Fund. ' Bond Fund- Monies are used to pay the principal, accrued interest and Registered Coupons of the Mortgage Revenue Bonds. 1 ' 9 r r CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND COMBINING BALANCE SHEETS r Program Expense Revenue Reserve Bond r Fund Fund Fund Fund ASSETS Investment agreement $1,047,708 $136,567 $157,111 Mortgage loans receivable 3,370,639 , Interest income 21,703 ' Mature mortgage loans and interest receivable from mortgage servicers 13,536 , Prepaid administrative fees $5,757 Total Assets $5,757 $4,453,586 $136,567 $157,111 ' LIABILITIES ' Mortgage revenue refunding bonds $2,953,985 Interest payable 840,358 r Accrued liabilities r Total Liabilities 3,794,343 RETAINED EARNINGS , Reserved for debt service $5,757 659,243 $136,567 $157,111 , Total Liabilities and Retained Earnings $5,757 $4,453,586 $136,567 $157,111 1 1 10 June 30 1 1993 1992 $1,341,386 $4,164,257 ' 3,370,639 5,768,960 21,703 67,899 13,536 707 ' 5,757 23,948 ' $4,753,021 $10,025,771 ' $2,953,985 $8,186,902 ' 840,358 880,637 2,333 3,794,343 9,069,872 958,678 955,899 $4,753,021 $10,025,771 1 ' 11 CONTRA COSTA COUNTY HOME MORTGAGE FINANCE AUTHORITY 1991 TAXABLE HOME MORTGAGE REVENUE REFUNDING BOND FUND COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN RETAIN-ED EARNINGS Program Expense Revenue Reserve Bond Fund Fund Fund Fund REVENUES Interest from mortgage loans $511,636 Interest from investment agreement 113,567 Total Revenues 625,203 EXPENSES. . Interest 535,771 Administrative $49,598 Mortgage servicing fees 11,976 Insurance 25,079 Total Expenses 86,653 535,771 OPERATING INCOME (LOSS) (86,653) 89,432 INTERFUND TRANSFERS IN 70,796 5,808,966 $8,962 $5,884,981 INTERFUND TRANSFERS (OUT) (5,807,635) (157,103) (5,808,967) NET INCOME (LOSS) (15,857) 90,763 (148,141) 76,014 Retained earnings beginning of year 21,614 568,480 284,708 81,097 Retained earnings at end of year $5,757 $659,243 $136,567 $157,111 12 For the Years Ended ' June 30 1993 1992 ' 511,636 $959,596 ' 113,567 162,237 ' 625,203 1,121,833 ' 535,771 1,059,156 ' 49,598 42,231 11,976 21,621 ' 25,079 88,486 ' 622,424 1,211,494 2,779 (89,661) 11,773,705 51,642,404 (11,773,705) (51,642,404) 2,779 (89,661) ' 955,899 1,045,560 $958,678 $955,899 1 ' 13 INSTRUCTIONS To COMPLETE WRITTEN APPLICATION FOR UNRESTRICTED CERTIFIED COPY OF A BIRTH RECORD Birth Certificate Information: Print or.type number of copies requested Print or type name of registrant Print or type date of birth Print or type city of birth Print or type father's name Print or type mother's maiden name Applicant Information: Print r t a erNsoTn Mor eCrinoSeTA COUNTY Print ortOOZA94 JrgAq&�ftCE AUTHORITY Print or type mailing address of person ordering(,oDv,if different than address above J Print or type teWMffiAuYh"LHft0MErA&tWTri QAEdhiding area code 3 Using the list below,check the box next to the code section in item 3 on the front of this application that authorizes you to obtAl*AMOAfitg(rAg"MEWSf a birth record: 103L2�(c)(1)The reXQ&X#f-PTAWV4Man of the registrant "oJUNE 30, 1993 AND 1992 t 103526(c)(2)A party entitled to receive t e record as a result of a court order,or an attorney or a licensed adoption agency seeking the birth record in order to comply with the requirements of Section 3140 or 7603 of the Family Code. 103526(c)(3)A member of a law enforcement agency or a representative of another governmental agency, as provided by law,who is conducting official bvsmess. 103526(c)(4)A child,grandparent,grandchild,sibling,spouse or domestic partner of the registrant. 103526(c)(5)An attorney representing the registrant or the registrant's estate,or any person or agency empowered by statute or appointed by a court to act on behalf of the registrant or the registrant's estate. y . 103526(c)(6)Any funeral director who orders certified copies of a death certificate on behalf of any individual specified in paragraphs(I)to(5),inclusive,of subdivision(a)or Section 7100 of the Health and Safety Code DO NOT COMPLETE THIS PART UNTIL YOU ARE WITH THE NOTARY PUBLIC WHO WILL PREPARE THE CERTIFICATE OF ACKNOWLEDGEMENT IN ITEM 5. Section 103526 of the California flealth and Safety Code requires anyone requesting an unrestricted certified copy of a birth record to complete and sign a sworn statement under penalty of perjury. Certificate of Acknowledgement Complete items I to 3 on the front of this application then bring to a notary public.Complete and sign the sworn statement in item 4 in front of the notary public.Request the notary acknowledge your signature in the sworn statement in item 4. Mail the original application with the appropriate fee($19.00 general public or$10.00 government agencies only). To:Contra Cost4 Rec % P.O.Box 3501 Martinez,CA`94553.-- Birth written unrestricted app 04/06 mil Z ZE & J A Oe%i ATES SS ACCOUNTANCY CORPORATION