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MINUTES - 05182004 - C57
TO: BOARD OF SUPERVISORS Uumtra FROM- JOHN SWEETEN, County Administrator tor Costa All% DATE: MAY 10, 2004 uounty If SUBJECT: SINGLE AUDIT REPORT FOR FISCAL,YEAR ENDED JUNE 30, 2003 SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND OND AND JUSTIFICATION RECEIVE single audit reports prepared by Caporicci & Larson. CPA, for the fiscal year ended June 30, 2003 and REFER it to the Board's Finance Committee and the County Administrator for review and follow-gip. A KQROU D- nder federal law; programs administered by Contra Caste County that are fully or partially funded with federal funds are subject to an annual review called the single edit. The purpose of the single audit is to review and determine compliance and integrity of federally funded programs. Caporicci & Larson, an independent certified public accounting firm, conducted the edit and has submitted it to the County. CONTINUED ON ATTACHMENT� —,e--YES SIGNATURE��" '':"EEG iMMENDA"f'#L3N OF COUNTY ADMINISTRATOR - REi,OMM3E#� ION(OF BARD COMMITTEE __,,:�APPROV OTH R 9j tQ� 1 TI€ I F`S A I ' ; ' r C APPRC?�s'E AS RECOMMENDED a Ya OTHER R VOTE OF SUPERVISORS I HEREBY CERTIFY TINA T THIS IS A's RUE r i AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ASSENT—L, � AND ENTERED ON THE MINUTEOF THE BOARD OF SUPERVISORS ON THE DATE AYES,._--NOES: SHOWN. ASSENT: ABSTAIN: ATTESTED: MAY 18,2004 CONTACT: JULIE FTA X9253 3555-1077 JOHN SWEETEN,CLERK OF T ISE BOARD OF SUPERVISORS ASIDC,NTY ADMINISTRATOR CC: COUNTY a4 MIN'S'9RATOR At,#€3ITOR-CON TROLLER LISA DRIS OLL,STAFF,FINANCE COMMI 1TEE By 2003 Single Audit Reports May 10, 2004 Page 2 In November 1999, the Board of Supervisors established a policy and procedure for addressing the annual findings and recommendations of the County's external auditors. The policy directs that all letters from the County's independent audit firm addressed to the Board be referred to the Board's Finance Committee, accompanied by a copy of the prior year's audit findings and recommendations. When the Finance Committee schedules the audit report for Board consideration, it will be accompanied by a report from the County Administrator that identifies what corrective action has been taken or is planned to be taken on each audit recommendation. c&L Caporicci&Larson Certifled Public Accountants November 14,2003 To the Honorable Board of Supervisors of the County of Contra Costa Martinez,California We have audited the basic financial statements of the County of Contra Costa, California (County) for the year ended June 30,2003,and have issued our report thereon dated November 1 ,2003. Professional standards require that we provide you with the following information related to our audit. Our Responsibilfty under Generally Accepted Auditing Standards and Government Au.ditin Standards Our responsibility, as described by professional standards, is to plan and perforin our audit to obtain reasonable,but not absolute, assurance about whether the basic financial statements are free of material misstatement. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud and defalcations,may exist and not be detected by us. As part of our audit,we considered the internal control of the County. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the basic financial statements are free of material misstatement, we performed tests of the County's compliance with certain provisions of laws, regulations,contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such.provisions. SigLifficant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement,we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the County are described in Dote 1 to the basic financial statements. We noted no transactions entered into by the County during the year that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. `£cy Free FSA:(877n,852-2200 "Fadi Frte Fax:(866)435-0927 ,10 ra cf? e.,Suite,13C5 5?84-DA2wayAvenue 777 Caznp�us Coa� o s.R;i.,Suite 200 (0)`13"Street,Sate 19173 CSad=d:Califcrria 94,112 Co-ia.Mena,Ca*fffh ul 92626 Sammento,CaHfomia 95825 San Diego-,Caii.°brn!a 92,101 To the Honorable Beard of Supervisors of the County of Contra Costa 4 T ' of California Accounting Estimates Accounting estimates are an integral part of the basic financial statements prepared by management and are based on manageanent's knowledge and experience about past and current events and assurnptiorss about future events. Certain accounting estimates are particularly sensitive because of their significance to the basic financial statements and because of the possibility that future events affecting them may differ significantly from those expected. Managernent's estimates are based on certain facts and circumstances at the time. We evaluated the key factors and assumptions used to develop the accounting estimates in determining that it was reasonable in relation to the basic financial statements taken as a whole. Siznificant Audit Adjustments For purposes of this letter,professional standards define a significant audit adjustment as a proposed correction of the basic financial statements that, in our judgment,may.not have,been detected except through our auditing procedures. These adjustments may include those proposed by us but not recorded by the County that could potentially cause fixture financial statements to be materially misstated, even though we have concluded that such adjustments are not material to the current financial statements to be materially misstated, evert though we have concluded that such adjustments are not material to the current financial statements. We proposed no audit adjustments that could, in our judgment, either individually or in the aggregate, have a significant effect on the County's financial reporting process. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the basic financial statements or the auditors' report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Cather Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second operon" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's basic financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. 2 To the Honorable Board of Supervisors of the County of Contra Costa 'Martinez, California Issues Discussed prior to Retention of IndeRendent Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year as the County's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing the County's audit. This information is intended solely for the use of the members of the Board of Supervisors and management of the County of Contra Costa and should not be used for any ether purpose. However, this report is a matter of public record,and its distribution is not limited. Very truly yours, e. � Caporicci&Larsen Oakland,California t i 3 County E Of s i i 3 Contra Martinez, California E 3 s Single Audit Reports .dor the year ended June 30, 2003 G C&Ll 3 Caporicci&Larson j Certifted Public accountants County of Contra Costa Table of Contents Pa e Independent Auditors' Report on Compliance and on Internal Control over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...... ....................................................................................................1 Independent Auditors' Report on Compliance with Requirements Applicable to each Major Program,Internal Control over Compliance and the Schedule of Expenditures of Federal Awards in accordance with OMB Circular A-133 and Supplemental Schedules of Revenue and Expenditures Prepared by the Contra Costa County Community Services Department........................................................................3 Schedule of Expenditures of Federal Awards.......... ....... .............. ................ ............ .........—.... .................5 Notes to the Schedule of Expenditures of Federal Awards.............................................—...........................9 Schedule of Findings and Questioned Costs................................................................. ................................15 Summary Schedules of Prior Audit Findings ............... ............... ............... ...................... ................ 18 Supplemental Schedules: Supplemental Schedules of Revenues and Expenditures Prepared by the Contra Costa Community Services Department.................................................20 Caporieci&Larson Certifted Public Accountants INDEPENDENT AUDITORS"REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING RASED ON AN AUDIT OF BASIC.FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Hoard of Supervisors County of Contra Costa,California Martinez,California We have audited the basic financial statements of the County of Contra Costa, California (County), as of and for the year ended June 30,2003,and have issued our report thereon dated:November 14,2003. We conducted our audit in accordance with generally accepted auditing standards in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether the County's basic financial statements are free of material misstatement, we performed tests of its compliance with certain previsions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However,providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the County's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements on amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Board of Supervisors, County management, and federal awarding agencies and pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties. Oakland,California November 14,2003 :.69 Free Ph:(877)862-2200 Tot:Free IF=( 4)436-0427 S9akklkd 01%ftffe cmmty Swc�tt2* San Dies* i so Grand Ave.,Suite 1365 3:84-D ea,-,aay Avenue 777 C=pus Co=_orl.-Rd.,Suitt 2W 600"W Street,Sime 1900 02kland,COitbrrla 94612 Costa Mesa,Caiiicmia 92626 Sacramento,Gaff ernnis 93825 Sari Diego, 92101 This page intentionally left blank 2 .................... ..................................................................................................... .................................................................._._.................................................................................................................. ......... ......... ......... ................................... ................................................................._ _ _ _ ...................................................................................... ................................................... . ..._.._. ............................. Caporicci&Larson C'erttfled Public accountants INDEPENDENT AUDITORS'REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM,INTERNAL CONTROL OVER COMPLIANCE AND THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE WITH OMB CIRCULAR A-133 AND SUPPLEMENTAL SCHEDULES OF REVENUE AND EXPENDITURES PREPARED BY THE CONTRA COSTA COUNTY COMMUNITY SERVICES DEPARTMENT To the Board of Supervisors County of Contra Costa,California Martinez,California Compliance We have audited the compliance of the County of Contra Costa, California (County), with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2003. The County's major federal programs are identified in the summary of auditor's results section of the accompanying schedules of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the County's management. Our responsibility is to express an opinion on the County's compliance based on our audit. The County's basic financial statements include the operations of the County of Contra Costa Housing Authority (Authority) that reported expenditures of federal awards of $79,607,574, which are not included in the schedule of expenditures of federal awards during the year ended June 30, 2003. Our audit, described below, dial not include the operations of the Authority because they engaged other auditors to perform an audit in accordance with OMB Circular A-133,Audits of States, Local Governments, and Non-Profit Organizations (OMB Circular A-1.33). We conducted our audit of compliance in accordance with generally accepted auditing standards in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable 'assurance about whether noncompliance with the types of compliance requirements referred to above that, could have a direct and material effect on a major federal program.occurred. An audit includes examining, on a test basis, evidence about the County's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the County's compliance with those requirements. In our opinion,the County complied, in all anterial respects, with the requirements',referred to above that are applicable to each of its major federal programs for the year ended June 30, 2003. However, the results of our auditing procedures disclosed instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are described in the accompanying schedule of findings and questioned costs as item 03-1. Toil Free Ph:(877)862-2200 =oil lime Ruc(866)436--0927 siaa�eT orimue ceussty 8scrameAlm San Dies* i5�fr a c Ave.,Seite 3365 3184.•DAirway Avenue 777 0rnpus Commons Rd.;Suite 200 600 lwl Stmee,Suite�qm Oakland,Cai'uor is 946.2 Cosa Mesa,Cahzorn;a 92626 Sac a zento,California 95825 Sat,Diego,California 92101 To the board of Supervisors County of Contra Costa,California Martinez,California Page 2 Internal Control Over Compliance The management of the County is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws,regulations,contracts and grants applicable to federal programs. In planning and performing our audit, we considered the County's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determined our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133. We noted a matter involving the internal control over compliance and its operation} that we consider to be a reportable condition. Deportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over compliance that, in our judgment, could adversely affect the County's ability to administer a major federal program in accordance with the applicable requirements of laws, regulations, contracts, and grants.. The reportable condition is described in the accompanying schedule of findings and questioned costs as item 03-1. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with the applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions that are also considered to be material weaknesses. However,we believe that the reportable condition described above is not a material weakness. Schedule of Expenditures of Federal Awards and Supplemental Schedules of Revenue and Expenditures We have audited the basic financial statements of the County of Contra Costa, California (County), as of and for the year ended June 30,2003,and have issued our report thereon dated November 14,2003. Our audit was performed for the purpose of forming opinions on the financial statements, which collectively comprise the basic financial statements of the County. The accompanying Schedule of Expenditures of Federal Awards and Supplemental Schedules of Revenues and Expenditures prepared by the County's Community Services Department are presented for purposes of additional analysis as required by OMB Circular A-133 and the State Department of Community Services and Development, respectively, and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion.,is fairly stated,in all material respects,in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the Board of Supervisors, County management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other then these specified parties. Oakland,California November 14,2003 _ County of Contra Costa Single Audit Report Schedule of Expenditures of Federal Awards For the year ended June 30,2003 Catalog of Federal Amount of Domestic Expenditures Assistance Federal Provided to Federal Grantor/Pass-Through Grantor/Program Title Number(CFDA) Expenditures Subrw'pients U.S.DEPARTMENT OF AGRICULTURE — Pass-Through State Department of Education: Food Donation 10.550 $ 324,320 $ - Pass-Through State Department of Social Services: Food Stamp Cluster: Food Stamps 10.551* 27,974 - State Administrative Matching Grants for Food Stamp 10.561* 6,314,935 Sub-total Food Stamp Cluster 6,342,909 - Pass-Through State Department of Aging: Nutrition Services Incentive 10.570 257,404 Pass-Through State Department of Agriculture: Special Supplemental Nutrition Program for Women,Infants and Children(WIC) 10.557 2,371,220 - Sub-total Pass-Through Programs 9,295,853 Total U.S.Department of Agriculture $ 9,295,853 $ -- U.S.DEPARTMENT OF MOUSING AND URBAN DEVELOPMENT Direct Programs: Community Development Block Grants/Entitlement Grants 14.218* $ 4,980,348 $ 2,238,816 Emergency Shelter Grants Program 14.231 127,778 29,920 HOME Investment Partnerships Program 14.239 2,189,564 1,829,207 Housing Opportunities for Persons with AIDS 14.241 753,461 648,742 Total U.S.Department of Housing and Urban Development $ 8,051,151 $ 4,746,685 U.S.DEPARTMENT OF JUSTICE Direct Programs: Juvenile Justice and Delinquency Prevention-Special Emp 16.541 $ 65,539 $ - Local Law Enforcement Block Grant 16.592 122,653 - Local Forensic Lab Improvement Program 16.580 806 Drug Court Discretionary Grant Program 16.585 98,362 98,362 Violent Offender Incarceration 16.586* 12,467,712 - Grants to Encourage Arrest Policies and Enforcement of Protection Orders 16.590 74,984 Weed and Seed 16.595 222,718 - State Criminal Alien Assistance Program 16.606 442,143 - Bulletproof Vest Program 16.607 15 067 Public Safety Partnership and Community Oriented Policing Grants 16.710 390,765 45,000 Sub-total Direct Programs 13,900,749 143,362 See Notes to the Schedule of Expenditures of Federal Awards. *Denotes Major Program 5 County of Contra Costa Single Audit Report Schedule of Expenditures of Federal Awards,Continued For the year ended June 30,2003 Catalog of Federal Amount of Doan estic Expen&tures Assistance Federal Provided to Federal Grantor/Pass-Through Grantor/Program. Title Number(CFDA) Expenditures Subrecipients U.S.DEPARTMENT OF JUSTICE,Continued Sub-total from previous page $ 13,900,749 143,362 Pass-Through State Office of Criminal justice Planning: uvenile Accountability Incentive Block Grants 16.523 173,490 69,775 Victim Witness Assistance Program 16.575 221,736 - Byrne Formula Grant Program 16.579 638,564 - Violence Against Women Formula Grants 16.588 123,762 - Sub-total Pass-Through Programs 1,157,552 69,775 Total U.S.Department of Justice $ 15,058,301 $ 213,137 U.S.DEPARTMENT OF LABOR Pass-Through State Employment Development Department(EDD): Senior Community Services Employment Program 17.235 $ 97,349 $ - 1-i1-B 17.249* 865,003 - Welfare-to-Work Grants to States and localities 17.253 360,337 - Workforce Investment Act(WIA)Cluster: WIA Adult Program 17.258 1,976,898 - WIA Youth Activities 17.259 328,514 - WIA Dislocated Worker 17.260 2,158,604 - Sub-total WIA Cluster 5,464,016 - Total U.S.Department of Labor $ 6,786,705 $ - U.S.DEPARTMENT OF TRANSPORTATION Direct Program: Airport Improvement Program 20.106 $ 138,786 $ - Pass-Through State Department of Transportation: Highway Planning and Construction 20.205 1,644,276 - Pass-Through State Office of Traffic Safety: State and Community Highway Safety 20.600 35,313 22,891 Sub-total Pass-Through Programs 1,679,589 22,891 Total U.S.Department of Transportation $ 1,818,375 $ 2201 ENVIRONMENTAL PROTECTION AGENCY Direct Programs: Surveys,Studies,investigations and Special Purpose Grant 66.606 $ 39,710 $ Solid Waste Management Assistance 66.808 11,000 - Total Environmental Protection Agency $ 50,710 $ - U.S.DEPARTMENT OF ENERGY Pass-"trough State Department of Community Services and Development: Weatherizanon Assistance for Low-Income Persons 81.042 $ 162,863 $ Total U.S.Department of Energy $ 162,863 $ - See Notes to the Schedule of Expenditures of Federal Awards. *Denotes Major Program 6 County of Contra Costa Single Audit Deport Schedule of Expenditures of Federal Awards, Continued For the year ended June 30,2003 Catalog of Federal Amount of Domestic Expenditures Assistance Federal Provided to Federal Gra.nior/Pass-Through Grantor/Program Title Number(CFDA) Expenditures Subrecipients FEDERAL EMERGENCY MANAGEMENT AGENCY Direct Programs: Emergency Food and Shelter National Board Program 83.523 $ 50,000 $ 50,000 Sub-total Direct Programs 50,000 50,000 Pass-Through State Office of Emergency Services: Public Assistance Grants 83.544 467,349 - Hazard Mitigation Grants 83.548 255,233 Sub-total Pass-Through Programs 722,582 - Total Federal Emergency Management Agency $ 772,582 $ 50,000 U.S.DEPARTMENT OF EDUCATION Pass-Through State Department of Alcohol and Drug Programs: Safe and Drug-Free Schools and Communities-State Grants 84.186 $ 32,764 $ 15,578 Total U.S.Department of Education $ 32,764 $ 15,578 U.S.DEPARTMENT OF HEALTH AND HUMAN SERVICES Direct Programs: National Family Caregiver Support 93.052 $ 89,779 $ - Health Center Grants for Homeless Populations 93.151 289,008 - Grants to Provide Outpatient Early Intervention Services with Respect to HMV Disease 93.918 310,302 49,473 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances(SED) 93.104* 1,254,162 646,186 Hansen's Disease National Ambulatory Care Program 93.215 357,549 - Consaiidated Knowledge Development and Application Program 93.230* 802,551 581,832 SYNERGY Program 93.243 410,362 407,770 Community Access Program 93.252 448,542 - Head Start 93.600 22,974,024 1,915,586 Sub-total Direct Programs 26,936,279 3,600,847 Pass-Through State Department of Aging: Special Programs for the Aging-Title VII,Chapter 3-Programs for Prevention of Elder Abuse,Neglect,and Exploitation 93.041 13,010 - Special Programs for the Aging-Title VII,Chapter 2-Long-Term Care Ombudsman Service for Older Individuals 93.042 38,987 - Special Programs for.Aging-Title III,Part F-Disease Prevention and Health Promotion Services 93.043 418,423 - Aging Cluster: Special Programs for Aging-Title III,Part B-Grants for Supportive Services and Senior Centers 93.044 3,996,721 - Special Programs for the Aging-Title III,Part C-Nutrition Services 93.045 940,614 - Special Programs for the Aging-Title III,Part D-IHSS 93.046 51,809 - Sub-total Aging Cluster 4,989,144 - Sub-total 31,925,423 3,600,847 See Notes to the Schedule of Expenditures of Federal Awards. * Denotes'Major Program 7 County of Contra Costa Single Audit Report Schedule of Expenditures of Federal Awards,Continued For the year ended June 30,2003 Catalog of Federal Amount of Domestic Expenditures Assistance Federal Provided to Federal Grantor/Pass-Through Grantor/Program Title Number(CFDA) Expenditures Subrecipients U.S.DEPARTMENT OF HEALTH AND HUMAN SERVICES,Continued Sub-total from previous page $ 31,925,423 3600847 Centers for Medicare Services(CMS)Research, Demonstrations and Evaluations 93.779 36,721 - Pass-Through State Department of Alcohol and Drug Programs: Block Grants for Community Mental Health Services 93.958 1,573,454 300,000 Block Grants for Prevention and Treatment of Substance A 93.959 6,592,953 4,718,123 Pass-Through State Department of Community Services and Development: Law-Income Home Energy Assistance 93.568 1,475,976 - Community Services Block Grant 93.569 676,564 276,230 Pass-Through State Department of Education: Child Care Mandatory and Matching Funds of the Child Care and Development Fund 93.596 446,930 - Child Care and Development Block Grant 93.575 4,147,858 - Pass-Through State Department of Health&Human Services: Project Grants and Cooperative Agreements for Tuberculosis Control.Programs 93.116 186,800 - Projects for Assistance in Transition from Homelessness 93.150 100,821 100182= Disabilities Prevention 93.184 1,612,784 - Immunization Grants 93.268 189,450 - HIV Emergency Relief Projects Grants 93.914 1,569,424 1,038,464 HIV Care Formula Grants 93.917 161,200 4,000 HIV Prevention Activities-Health Department Based 93.940 365,000 262,763 HIV/AIDS Surveillance 93.944 40,000 - Materna:and Child Health Services Block Grant to the State 93.994* 1,619,980 410,81 Pass-Through State Department of Social Services: Promoting Safe and Stable Families 93.556 600,799 - Temporary Assistance to Needy Families 93.558* 85,259,196 - Child Support Enforcement 93.563 14,459,440 - Refugee and Entrant Assistance-State Administered Program 93.566 144,418 - Child Welfare Services-State Grants 93.645 931,708 - Foster Care-Title W-C 93.658* 29,598,646 - Adoption Assistance 93.659 5,938,219 - Independent Living 93.674 597,573 - Medical Assistance Program 93.778 691,750 Subtotal Pass-Through Programs 164,477,228 7,110,482 Total U.S.Department of Health and Human Services $ 191,413,507 $ 10,711,329 U.S.DEPARTMENT OF HOMELAND SECURITY State Domestic Preparedness 97.004 $ 154,634 $ _ - OFFICE OF THE PRESIDENT Pass-Through San Mateo County Sheriff: High Intensity Drug Trafficking Area 99.999 46,120 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 233,643,565 $ 15,759,620 See Notes to the Schedule of Expenditures of Federal Awards. Denotes Major Program 8 County of Contra Costa Single Audit Report Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30,2003 1. GENERAL The Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal awards programs of the County of Contra Costa, California (County), except for the awards related to the County of Contra Costa Housing Authority (Authority). The Authority conducted a separate single audit in accordance with OMB A-133. The County's reporting entity is defined in note IA of the County's basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through to the County from other governmental agencies, are included on the Schedule. 2. BASIS OF ACCOUNTING The Schedule is presented using the modified accrual basis of accounting for governmental funds and full accrual basis of accounting for proprietary funds, which are described in note 1 of the County's basic financial statements. 3. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS The majority of the federal award expenditures are reported in the County's basic financial statements in the general fund and special revenue funds. Revenues and expenditures related to the value of food stamps issued under the Food Stamps program are not reported in the County's basic financial statements as they are non-cash awards. Expenditures related to the Food Donation Program are not reflected in the County's basic financial statements as these represent aid-in-kind. 4. LOAN PROGRAMS The County has provided loans under several U.S. Department of Housing and Urban Development programs. These loans are made to carry out activities for affordable housing and economic development. The programs are administered both internally and by servicing and trust arrangements with financial institutions to collect loan repayments. The funds will be returned to the County programs upon repayment of the principal and interest,and will be recorded as program income at that time. The following is a summary of the loan programs maintained by the County along with the outstanding loan receivable balances at June 30,2003° CFDA Amount Program Title Number Outstanding Community Development Block Grant 14.218 $ 12,246,127 HOME Investment Partnerships Program 14.239 17,143,591 Housing Opportunities for Persons with AIDS 14.241 2,174,242 $ 31,563,960 9 County of Contra Costa Single Audit Report Notes to the Schedule of Expenditures of Federal Awards, Continued For the year ended June 30, 2003 5. PROGRAMS FUNDED THROUGH THE STATE DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT The following table,requested by the State, is a summary of expenditures for selected programs funded through the State Department of Community Services and Development for the year evaded June 30, 2003: CFDA Program Title Number Amount Weatherization Assistance for low-income Person 81.042 $ 162,863 Low-income Home Energy Assistance 93.568 $ 1,475,976 Community Services Block Grants 93.569 $ 676,564 The detail of these programs, by contracts, is included in. the Supplemental Schedules section of this report. The amounts reported in the Supplemental Schedules are on the cash basis. 6. SUMMARY OF FEDERAL EXPENDITURES OF THE AUTHORITY The Authority's expenditures are excluded from the Schedule because they are separately audited. The programs of the Authority as of March 31,2003 were as follows: CFDA Federal Program Title Number Expenditures U.S.Department of Housing and Urban Development i ow Income Housing Assistance Program Section 8 Moderate Rehabilitation 14.856 $ 120,781 Section 8 Housing Choice Voucher 14.871 661685,908 Public Housing Drug Elimination Program 14.854 242,829 Economic Development and Supportive Services Program.(EDSS) 14.864 57,405 Resident Opportunity and Supportive Services(ROSS) 14.870 15,587 Shelter Plus Care 14.238 1,880,753 Public and Indian Housing 14.850 6,697,203 Public Housing Capital Fund 14.872 1,755,684 Public housing Comprehensive improvement Assistance Program(CTAP) 14.852 82,392 Public Housing Comprehensive Grant Program 14.859 11854,935 Community Development Block Grants 14.218 107,536 Rental Rehabilitation N/A 34,105 Total U.S.Department of Housing and Urban Development 79,535,118 U.S.Department of Health and Human Services Health Center Grants for Homeless Populations 93.151 72,456 Total Federal Expenditures $ 79,607,574 10 County of Contra Costa - Single Audit Report Notes to the Schedule of Expenditures of Federal Awards,Continued For the year ended June 30,2003 7, PROGRAMS FUNDED THROUGH THE STATE OFFICE OF CRIMINAL JUSTICE PLANNING (OCJP) A. The following represents federal expenditures for the year ended June 30,2003,for programs passed through the Office of Criminal Justice Planning(OCJP): 1. Anti-Drug Abuse Enforcement Grant(DCO2150070) Actual Match Budget Expenditures Expenditures Total Variance Personal services $ 631,676 $ 631,676 $ - $ 631,676 $ - Operating expenses 6,888 6,888 - 6,888 Equipment __ - -- - Total $ 638,564 $ 638,564 $ - $ 638,564 $ 2. Local Forensic Laboratory Improvement Program(LF00010070) Actual Match Budget Expenditures Expenditures Total Variance Personal services $ - $ - $ - $ - $ - Operating expenses 17,000 806 - 806 16,194 Equipment - - - - Total $ 17,000 $ 806 $ - $ 806 $ 16,194 3. Juvenile Accountability(11'01020070) Actual Match Budget Expenditures Expenditures Total Variance Personal services $ 89,474 $ 80,52.7 $ 8,947 $ 89,474 $ - Operating expenses 80,976 72,878 8,098 80,976 - Equipment 21,878 19,658 2,184 21,842 36 Total $ 192,328 $ 173,063 $ 19,229 $ 192,292 $ 36 4. Juvenile Accountability (IP02010070) Actual Match Budget Expenditures Expenditures Total Variance Personal services $ 124,735 $ 427 $ 47 $ 474 $ 124,262 Operating expenses 38,645 - - - 38,645 Equipment - - - Total $ 163,380 $ 427 $ 47 $ 474 $ 162,906 11 County of Contra Costa Single Audit Report Notes to the Schedule of Expenditures of Federal Awards, Continued For the year ended June 30,2063 7. PROGRAMS FUNDED THROUGH THE STATE OFFICE OF CRIMINAL JUSTICE PLANNING (OCJP),Continued A. The following represents federal expenditures for the year ended June 30,2003,for programs passed through the Office of Criminal Justice Planning(OCJP),Continued: S. Violence Against Women(PU02010070) Actual batch Budget Expenditures Expenditures Total Variance Personal services $ 131,483 $ 98,612 $ 32,871 $ 131,483 $ - Operating expenses 1,850 1,125 375 1,500 350 Equipment - - - - Total $ 133,333 $ 99,737 $ 33,246 $ 132,983 $ 350 6. Violence Against Women(PU38010070) Actual Match Budget Expenditures Expenditures Total Variance Personal services $ 506,584 $ 23,462 $ 7,821 $ 31,282 $ 475,302 Operating expenses 6,750 563 188 750 6,000 Equipment - - - - Total $ 513,334 $ 24,024 $ 8,008 $ 32,032 $ 481,302 B. The following represents state expenditures for the year ended June 30, 2003, for programs sponsored by the Office of Criminal Justice Planning (OCJP) and are included as required by the OCJP Grantee Handbook: 1. Statutory Rape Vertical Prosecution(SR02060070) Actual Match Budget Expenditures Expenditures Total Variance Personal services $ 133,650 $ 133,650 $ - $ 133,650 $ - Operating expenses 1,350 1,350 - 1,350 Equipment - - - - _ Totals $ 135,000 $ 135,000 $ - $ 135,000 $ - 12 County of Contra Costa Single Audit Report Notes to the Schedule of Expenditures of Federal Awards,Continued For the year ended June 30,2003 7. PROGRAMS FUNDED THROUGH THE STATE OFFICE OF CRIMINAL JUSTICE PLANNING (OCJP),Continued Po The following represents state expenditures for the year ended June 30, 2003, for programs sponsored by the Office of Criminal Justice Planning (OCJP) and are included as required by the OCJP Grantee Handbook,Continued: 2. Career Criminal Prosecution(CP01120070) Actual Mate Budget Expenditures Expenditures Total Variance Personal services $ 330,072 $ 330,072 $ - $ 330,072 $ Operating expenses 3,334 3,334 - 3,334 Equipment - - Totals $ 333,406 $ 333,406 $ - $ 333,406 $ 3, Major Narcotics Vendor Prosecution(NV02040070) Actual Match Budget Expenditures Expenditures Total Variance Personal services $ 127,245 $ 127,245 $ - $ 127,245 $ Operating expenses 1,285 1,285 - 1,285 - Equipment .�... - - - Totals $ 128,530 $ 128,530 $ - $ 128,530 $ 4. Victim.Witness Assistance Program(VW00190070) Actual Match Budget Expenditures Expenditures "Total Variance Personal services $ 1,272,366 $ 521,495 $ - $ 521,495 $ 750,871 Operating expenses 133,051 45,636 - 45,636 87,415 Equipment 70,994 43,540 - 43,540 27,454 Totals $ 1,476,411 $ 610,671 $ - $ 61.0,571 $ 865,740 13 County of Contra Costa Single Audit Report Notes to the Schedule of Expenditures of Federal Awards, Continued For the year ended June 30,2003 7< PROGRAMS FUNDED THROUGH THE STATE OFFICE OF CRIMINAL JUSTICE PLANNING (OCJP),Continued B. The following represents state expenditures for the year ended June 30, 2003, for programs sponsored by the Office of Criminal Justice Planning (OCJP) and are included as required by the OCJP Grantee Handbook,Continued: 5. Cold Hit Program(CG00010070) Actual Match Budget Expenditures_ Expenditures Total Variance Personal services $ 110,812 $ 17,522 $ - $ 17,522 $ 93,290 Operating expenses 24,440 4,476 - 4,476 19,964- Equipment 9,964Equipment 65,670 4,689 - 4,689 60,981 Totals $ 200,922 $ 26,687 $ - $ 26,687 $ 174,235 6. focal Forensic Laboratory Improvement Program(LF00010070) Actual Match Budget Expenditures Expenditures Total Variance Personal services $ - $ - $ - $ - $ - Operatmg expenses 922,757 55:,479 - 551,479 371,278 Equipment 1,260,166 184,959 - 184,959 1,075,207 Totals $ 2,182,923 $ 736,438 $ - $ 736,438 $ 1,446,485 14 ................................. _.................._............._.................................................._.. .. ..................................................................................................................................................... .... ......... ......... ......... ......_. __ _ .. _....._ ........................................................... .. .. ....... ... ................................................ ..........................................................................._.. ......... . ........ ....... County of Contra Costa Single Audit Report Schedule of Findings and Questioned Costs For the year ended June 30,2003 A. SUMMARY OF AUDIT RESULTS 1. The auditors' report expresses an unqualified opinion on the basic financial statements of the County of Contra Costa (County). 2. No reportable conditions relating to the audit of the financial statements are reported in the basic financial statements. 3. No instances of noncompliance material to the financial statements of the County were disclosed during the audit. 4. No reportable conditions relating to the audit of the major federal award programs is reported in the basic financial statements. 5. The auditors' report on compliance for the major federal award programs for the County expresses an unqualified opinion. 6. Audit findings relative to the major federal award programs for the County are reported in Part C of this Schedule below. The finding related to the six-month eligibility re-determination(form FC2). 7. The programs tested as major programs include: Major program Expenditures Food Stamp Administration $ 6,342,909 Community Development Block Grant 4,980,348 Violent Offender incarceration 12,467,712 Hl-B 865,003 Mental Health Services for Children with SED 1,254,162 Consolidated Knowledge Development 802,551 Maternal and Child Health Services 1,619,980 Temporary Assistance to Needy Families 85,259,196 Foster Care-Title TV-C 29,598,646 Total Major Program Expenditures $ 143,190,507 Total Federal Award Expenditures $ 233,643,565 Percent of Total Federal Award Expenditures 61.29% 8. The threshold for distinguishing Types A and B programs was$3,000,000. 9. The County was determined to be a high risk auditee. 15 County of Contra Costa Single Audit Report Schedule of Findings and Questioned Costs, Continued For the year ended June 30,2003 B. FINDINGS-FINANCIAL STATEMENTS AUDIT No matters were reported. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT 03-1 U.S.DEPARTMENT OF HEALTH AND HUMAN SERVICES Foster Care--Title 1V-E, (CFDA Number 93.638) --Eligibility Passed through the State of California,Department of Social Services Administered by the County's Employment and Human Services Department Criteria In accordance with OMB Circular A-133, grantees are required to abide by the eligibility requirements as documented in the individual grant agreements of the respective programs. For the Foster Care program, eligibility requires that a re- deter:nination be performed every six months on participants to ensure that they still qualify for the federal program benefits. Condition During the performance of our audit, we noted that for eight out of the tern case files selected for testing, the periodic six-month eligibility re-determination (form FC2) was performed after the six-month requirement. Previously, the form FC2 was not performed. Context and Effect by ensuring that periodic re-determinations are performed timely,changes in income and property for the child's foster care case are reviewed to ensure that Foster Care assistance is being issued in the correct amount. Recomxrnendation We recommended that the County strengthen its controls governing the periodic eligibility re-determination process to ensure that it is performed in a timely manner. Management's Response In response to the 2002 finding, the department reassigned responsibility for initiating the reinvestigations from Children's Services Program to the Foster Care Program, which is directly accountable for ensuring that the investigations occur timely. To facilitate the timely initiation of reinvestigations, the Case Data System that is used for Foster Care Eligibility is being used to identify reinvestigations that are due 30, 60, and 90 days in advance. The Eligibility Worker in Foster Care can then prompt the Clerical Specialist to generate the reinvestigation form and forward it to the Social Worker for review and processing. Eligibility Staff track to assure the forms are returned and the Reinvestigation is completed and recorded by the Eligibility Worker. 16 ................................................. ............................................................................................. ......... ......... ......... ......... ............ ._................. ........ ......... ......... .......... .......... . ......... ....... ............. ..... ...... ... County of Contra Costa Single Audit Report Schedule of Findings and Questioned Costs, Continued For the year ended June 30, 2003 C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT, Continued Management`s Response, Continued Additionally, recognizing that the previous decentralization of Clerical Specialists who support the reinvestigation process may have been contributing to the reinvestigation backlog, the department added a new Clerical Supervisor position under the Poster Care Program to provide central supervision of the Clerical Specialists. With a more concentrated focus on the reinvestigation backlog, the department is now monitoring not only the completion of investigations,but also the initiation of new investigations. These corrective actions have significantly reduced the backlog of eligibility reinvestigations. For example, front. September 2002 to December 2003, the backlog of reinvestigations was reduced from 1300 to 29. The auditor's 2003 finding, though still cause for concern and ongoing diligence, actually recognized that all ten test files had current completed reinvestigations and PC2 forms on file. The fact that eight of ten reinvestigations were not conducted timely for the audit report period is indicative of the backlog of overdue reinvestigations that have been addressed and completed. As the backlog has been substantially cleared and with the implementation of the corrective actions described above, it is expected that the periodic six-month eligibility redetermination will be,henceforth,performed timely. 17 County of Contra Costa Single Audit Report Summary Schedules of Prior Audit Findings For the year ended June 30,2003 The following is the status of audit findings reported in the prior year's schedule of findings and questioned costs:. 02-7. U.S DEPARTMENT OF HEALTH AND HUMAN SERVICES Foster Care-Title IV-E, (CFDA Number 93.658) -Eligibility Passed through the State of California,Department of Social Services Administered by the County's Employment and Human Services Department Criteria In accordance with OMB Circular A-7.33, grantees are required to abide by the eligibility requirements as documented in the individual grant agreements of the respective programs. For the Foster Care program, eligibility requires that a re- determination be performed every six months on participants to ensure that they still qualify for the federal program benefits. Condition During the performance of our audit, we noted that for twenty-four out of forty case files selected for testing, the periodic six-month eligibility re-determination (form FC2)had not been performed. This is a repeat finding from the prior year. Context and Effect Ey ensuring that periodic re-determinations are performed timely,changes in income and property for the child's foster care case are reviewed to ensure that Foster Care assistance is being issued in the correct amount. Recommendation We recommended that the County strengthen its controls governing the periodic eligibility re-determination process to ensure that it is performed. Management's Response We are implementing a new process intended to eliminate overdue reinvestigations and maintain all reinvestigations in a current status. This new process uses the court hearing date assigned to each child as the due date for the reinvestigation for that case,both coming due bi-annually. We anticipate that once we have completed a full 6 month cycle, all overdue reinvestigations will be substantially reduced or eliminated. We will continue to work with this process until we achieve the goal of no overdue reinvestigations. We will however, continue to look for new ways to consistently reinvestigate program cases every six months. Status In progress. Eligibility re-determination continues to be a finding. See current year finding. 18 SUPPLEMENTAL SCHEDULES 19 County of Coma Costa Community Services Department Supplemental Schedule of Revenues and Expenditures Summary Schedule For the year ended June 30,2003 Catalog of Federal Domestic Assistance Total DCSD Contract No. Number(CFDA) Expenditures 02C-1409 Weatherization 81.042 $ 125,312 03C-1459 Weatherizaaon 81.042 37,551 Total $ 162,863 0113-5009 ECIP 93.568 $ 3,221 018-5009 Assurance 16 93.568 869 018-5009 HEAP-Outreach 93.568 - 01B-5009 Weatherization 93.568 - 02B-5159 ECIP 93.568 201,537 028-5159 Assurance 16 93.568 80,657 028-5159 HEAP-Outreach 93.568 33,533 0213-5159 Weat_herization 93.568 327,074 0313-5210 ECIP 93.568 104,359 038-5210 Assurance 16 93.568 29,116 03B-5210 HEAP-Outreach 93.568 10,679 038-5210 Weatherization 93.568 203,019 01X-6039 CAL-LIHEAP Intake Costs 93.568 43,246 0IX-6009 CAL-LIHEAP Outreach&Training Costs 93.568 118,362 0IX-6009 CAL-LIHEAP Administrative Costs 93.568 49,624 01X-6009 CAL-LIHEAP Weatherization 93.568 259,484 0IX-6009 CAL-LIHEAP EVP ECIS/CAP 93.568 4,942 0IX-6009 CAL-LIHEAP EVP E CIS/CAP Administrative Costs 93.568 - 0IX-6009 CAL-LTa IEAP EVP Weatherization 93.568 16,254 Total $ 1,475,976 02F-4208 CSBG 93.569 $ 509,214 03F-4308 CSBG 93.569 167,350 Total $ 676,564 20 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No.02C-1409 Weatherization (CFEIA #81.042) For the year ended June 30,2003 Total Deported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 124,976 $ 124,976 $ 124,976 Total revenue $ 124,976 $ 124,976 $ 124,976 EXPENDITURES: Administrative: Salaries&wages $ 743 $ 743 $ 1,329 Fringe benefits 252 252 448 Facilities 333 333 262 Telephone-communication 102 102 200 Accounting 2,995 2,995 2,618 Office supplies 247 247 793 Miscellaneous 198 198 600 Total administrative 4,870 4,870 6,250 Other Program: Training and technical assistance 3,453 3,453 2,245 Health and safety - - 12,500 Total other program 3,453 3,453 14,745 Program operations: Measures 104,530 104,530 84,812 Outreach 5,561 5,561 12,219 Intake 2,331 2,331 5,122 Client education 4,567 4,567 1,829 Total program operations 116,989 116,989 103,982 Total expenditures $ 125,312 $ 125,312 $ 124,977 21 County of Centra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 0304459 Weatherization (CFDA #81.042) For the year ended June 30,2003 Tota:Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ - $ - $ 121,210 Total revenue $ - $ _ $ 121,210 EXPENDITURES: Administrative: Salaries&wages $ - $ - $ 925 Fringe benefits - - 444 Facilities - - 414 Telephone-communication - _ 126 Accounting 643 643 3,597 Office supplies 489 489 309 Miscellaneous 9 9 245 Total administrative 1,141 1,141 6,060 Other Program: Training and technical assistance - - 3,310 Health and safety - - 25,000 T otal other program - - 28,310 Program operations: Measures 36,410 36,410 77,592 Outreach - - 4,128 Intake - - 1,730 Client education - - 3,390 Total program operations 36,410 36,410 86,840 Total expenditures $ 37,551 $ 37,551 $ 121,210 22 .................................................... .................................................................................................................._.. ......... ......... ......... .......... .. ..... . .._.__. .................... _._...... ......... ......... ......... ........ ............................ ..... .. _ _ _ _ _ ......... .......__ .......... ........................................ _..........................................................................._. . ........................... ....... County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 01B-5009 ECIP (CFDA #93.563) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVElrti.;E: Grant revenue $ 37,555 $ 37,555 $ 164,841 Total revenue $ 37,555 $ 37,555 $ 164,841 EXPENDITURES: Administrative: Salaries&wages $ 286 $ 286 $ 26,914 Fringe benefits 96 96 6,703 Facilities 96 96 1,585 Travel in-state - - 232 Tei./communication - - 145 Accounting 128 128 2,176 Office Supplies 177 177 13 Miscellaneous 1,912 1,912 1,733 Intake - - 208 Total administrative 2,695 2,695 39,709 Program: Outreach cost(5%max.) 526 526 14,550 Furnace repair - - _ Furnace replacement - - 110,582 Total program 526 526 125,132 Dotal expenditures $ 3,221 $ 3,221 $ 164,841 23 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. OIB-5009 Assurance 16 (CFDA #93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 24,018 $ 24,018 $ 66,182 Total revenue $ 24,018 $ 24,018 $ 66,182 EXPENDITURES: Program: Assurance 16 Activities $ 869 $ 869 66,182 Total expenditures $ 869 $ 869 $ 66,1182 24 ................................. ............................................................................................ ............................................................. ..................................................................................... .......................................................... ............................................................- ............................................................................................ ...................... County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. OIB-5009 HEAP OUTREACH (CFDA #93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 16,025 $ 16,025 $ 26,191 Total revenue $ 16,025 $ 16,025 $ 26,151 EXPENDITURES: Program: HERAP Outreach $ - $ - $ 26,191. Total expenditures $ - $ - $ 26,191 25 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 0113-5009 Weatherization(CFDA#93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 81,665 $ 81,665 $ 349,523 Total revenue $ 81,665 $ 81,665 $ 349,523 EXPENDITURES: Administrative: Salaries&wages $ - $ - $ 2,651 Fringe benefits - - 1,011 Facilities - - 1,131 Utilities - - - Equipment - - - Telephone-communication - - 247 Training - - - Travel in-state - - 132 Accounting - 13,055 Audit costs - Insurance-bonding - - - Office supplies - - 868 Miscellaneous - - 501 Intake - - 8,366 Total administrative - - 27,962 Program: Training - - 370 Travel in-state - - 1,061 Outreach - - 16,153 Dwelling assessment - 23,388 Equipment - - - Weatherization materials - - 155,076 Labor - - 106,047 Storage - - 2,635 Maintenance-repair - - 14,315 Miscellaneous - - 2,516 Total program - - 321.,561 Total expenditures $ - $ - $ 349,523 26 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 028-5159 ECIP (CFDA #93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 201,537 $ 201,537 $ 201,969 Total revenue $ 201,537 $ 201,537 $ 201,969 EXPENDITURES: Administrative: Salaries&wages $ 19,141 $ 19,141 $ 15,153 Fringe benefits 7,379 7,379 5,570 Facilities 33 33 2,500 Equipment - - 5,000 Travel in-state - - 1,500 Tel./communication 479 479 3,362 Accounting 12,287 12,287 6,700 Office supplies 329 329 1,800 Miscellaneous 3,308 3,308 2,126 Intake 5,675 5,675 5,000 Total administrative 48,631 48,631 48,711 Program: Outreach cost(5%max.) 18,630 18,630 1-8,630 Furnace repair 9,496 9,496 - Furnace replacement 124,780 124,780 134,628 Total program 152,906 152,906 153,258 Total expenditures $ 201,537 $ 201,537 $ 201,969 27 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 02B-5159 Assurance 16 (CFDA #93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 80,657 $ 80,657 $ 80,657 Total revenue $ 80,657 $ 80,657 $ 80,657 EXPENDITURES: Program: Assurance 16 activities $ 80,657 $ 80,657 $ 80,657 Total expenditures $ 80,657 $ 80,657 $ 80,657 28 ............................................. ....................................................................................................... ......... ......... ............... ......... ............. .... ......... ......... ........ .... ......... ......... ................. _ .................................. _........... ................................... __ _ ........................................................................................................... . County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 02B-5159 HEAP-Outreach (CFDA #93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 33,533 $ 33,533 $ 33,533 Total revenue $ 33,533 $ 33,533 $ 33,533 EXPENDITURES: Program: HEAP Outreach $ 33,533 $ 33,533 $ 33,533 Total expenditures $ 33,533 $ 33,533 $ 33,533 29 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 02B-5159 Weatherization (CFDA#93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 363,183 $ 363,183 $ 403,298 Total revenue $ 363,183 $ 363,183 $ 403,298 EXPENDITURES: Admin=istrative: Salaries&wages $ 2,512 $ 2,512 $ 3,053 Fringe benefits 1,803 1,803 1,164 Facilities 1,301 1,301 1,303 Equipment - - 1,500 Telephone-communication - - 284 Travel in-state 258 258 152 Accounting 1.0,483 10,483 1,030 Office supplies 1,896 1,896 1,000 Miscellaneous 349 349 577 Intake 926 926 8,130 Total administrative 19,528 19,528 32,193 Program: Training 1,205 1,205 424 Travel in-state - - 1,215 Outreach 20,179 20,179 21,448 Dwelling assessment 23,908 23,908 23,776 Equipment - - 25,000 Weatherization materials 172,198 172,198 166,542 Labor 63,155 63,155 10,412 Storage - - 3,017 Maintenance-repair 9,837 9,837 16,389 Miscellaneous 7,064 7,064 2,882 Total program 297,546 297,546 271,105 Total expenditures $ 317,074 $ 317,074 $ 303,298 30 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 03B-5210 ECIP (CFDA #93.563) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 9,650 $ 9,650 $ 150,340 Total revenue $ 9,650 $ 9,650 $ 150,340 EXPENDITURES: Administrative: Salaries&wages $ 7,342 $ 7,342 $ 19,991 Fringe benefits 5,477 5,477 9,332 Facilities - - 1,500 Travel in-state - - 11000 Tel./communication 19 19 540 Accounting 1,381 1,381 9,877 Office supplies 87 87 1,343 Miscellaneous 4,879 4,879 1,162 Intake 3,208 3,208 9,645 Total administrative 22,393 22.393 54,390 Program: Outreach cost(5%max.) 5,131 5;131 19,989 Furnace repair and replacement 76,835 76,835 75,961 Total program. 81,966 81,966 95,950 Total expenditures $ 104,359 $ 104,359 $ 150,340 31 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 0313-5210 Assurance 16 (CFDA #93.568) For the year ended June 30, 2003 Total Reported Tota-Budgeted Amount Amount Amount REVENUE: Grant revenue $ 3,022 $ 3,022 $ 90,751 Total revenue $ 3,022 $ 3,022 $ 90,751 EXPENDITURES: Program: Assurance 16 activities $ 29,116 $ 29,116 $ 90,751 Total expenditures $ 29,116 $ 29,116 $ 90,751 32 ............................... ..................................................................................... ........ ...........................................................1.11,11,1111.1.11.............................. ...... ................................................... . ....... ........................................................- ...................................................................................... ....................................................................................... Counter of Contra Cosh Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 03B-5210 HEAP-Outreach (CFDA#93.563) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ - $ - $ 35,983 Total revenue $ - $ - $ 35,983 EXPENDITURES- Program: 14-EAP Outreach $ 10,679 $ 10,679 $ 10,679 Total expenditures $ 10,679 $ 10,.679 $ 10,679 33 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 038-5210 Weatherization (CFDA #93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 60,311 $ 60,311 $ 454,511 Total revenue $ 60,311 $ 60,311 $ 454,5111 EXPENDITURES: Administrative: Salaries&wages $ 123 $ 123 $ 2,113 Fringe benefits 114 114 1,070 Facilities 681 681 2,041 Accounting 4,586 4,586 22,931 Office supplies 1,957 1,957 1,516 Miscellaneous 644 644 2,152 Intake - - 4,538 Total administrative 8,105 8,105 36,361 Program: Training 1,753 1,753 1,158 Outreach 9,573 9,573 22,818 Dwelling assessment 19,151 19,151 32,676 Equipment - - 27,000 Weat,erization materials 123,242 123,242 212,017 Labor 32,478 32,478 94,458 Storage - - 2,000 Maintenance-repair 7,751 7,751 13,463 Miscellaneous 966 966 9,560 Total program 194,914 194,914 415,150 Total expenditures $ 203,019 $ 203,0619 $ 451,511 34 _........................................ ---------............................................................................... _......................................................_.....__.............................__..... ......... ......... ......... ....................................... ....... ................. ... .. ............................................................................................................. . .. .. . ... .......... . County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. OIX-6009 CAL-LIHEAP Intake Costs (CFDA#93.568) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 43,246 $ 43,246 $ 68,172 Total revenue $ 43,246 $ 43;246 $ 68,172 EXPENDITURES: Program: intake $ 43,246 $ 43,246 $ 68,172 Total expenditures $ 43,246 $ 43,246 $ 68,172 35 County of Conga Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 01X-6009 CAL-LIHEAP Outreach &Training Costs (CFDA I#93.568) For the year ended June 30,2003 Total Reported 'Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 118,362 $ 118,362 $ 137,655 Total revenue $ 118,362 $ 118,362 $ 137,655 EXPENDITURES: Program: Outreach $ 65,317 $ 65,317 $ 86,000 Training for consumers 53,045 53,045 51,655 Tectal expenditures $ 118,362 $ 118,362 $ 137,655 36 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 01X-6009 CAL-LIHEAP Administrative Costs (CFDA #93.563) For the year ended June 30, 20033 Total reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 49,624 $ 49,624 $ 71,995 otal revenue $ 49,624 $ 49,624 $ 71,995 EXPENDITURES: Administrative: Salaries&wages $ 23,303 $ 23,303 $ 47,124 Fringe benefits 10,952 20,952 14,662 Facilities - - 11574 Travel in-state 164 164 230 lel./communications 348 343 213 Accounting 9,561 9,561 11,162 Office supplies 5,160 5,160 350 Miscellaneous 136 136 2,680 Total expenditures $ 49,624 $ 49,624 $ 77,995 37 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 01X-6009 CAL-LIHEAP Weatherization (CFDA#93.563) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Brant revenue $ 357,116 $ 357,116 $ 552,916 Total revenue $ 357,116 $ 357,116 $ 552,916 EXPENDITURES: Administrative: Salaries&wages $ 1,364 $ 1,364 $ 3,562 Fringe benefits 1,047 1,047 1,358 Facilities - - 1,520 Staffing training 1,604 1,604 332 Travel ln-State 105 105 - Telephone-communication 202 202 178 Accounting 5,442 5,442 17,540 Office supplies 2,149 2,149 1,166 Miscellaneous - - 674 Total administrative cost 11,913 11,913 26,330 Program: Staff training - - 638 Travel in-state - - 1,830 Dwelling assessment 18,598 13,598 40,326 Weatherization materials 189,888 189,838 267,380 Tabor 20,956 20,956 182,348 Storage 1,737 1,737 4,544- Maintenance ,544Maintenance-repair 15,069 15,069 24,682 Miscellaneous 1,323 1,323 4,338 Total program costs 247,571 247,571 526,586 Total expenditures $ 259,484 $ 259,484 $ - 552,916 38 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 01X-6009 CAL-LIHEAP EVP SCIS/CAP (CFDA #93.560 For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 4,942 $ 4,942 $ 4,982 "otal revenue $ 4,942 $ 4,942 $ 4,982 EXPENDITURES- Program: Intake $ 1,923 $ 1,923 $ 1.,923 Outreach 3,019 3,019 3,059 Total expenditures $ 4,942 $ 4,942 $ 4,982 39 County- of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No.01X-6009 CAL-LIHEAP EVP ECIS/CAP Administration Costs (CFDA ##93.563) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ - $ - $ 1,272 Total revenue $ - $ - $ 1,2.72 EXPENDITURES: Program: Salaries&wages $ - $ - $ 867 Fringe'benefits _ - 216 Facilities - - 51 Travei in-state _ 7 Tel./communications - 5 Accounting - 74 Miscellaneous - - 56 Total expenditures $ - $ $ 1,272 40 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 01X-6009 CAL-LIFIEAP EVP Weatherization(CFDA #93.568) For the year ended June 30,20013 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 18,904 $ 18,904 $ 19,180 Total revenue $ 18,904 $ 18,904 $ 19,180 EXPENDITURES: Administrative: Salaries&gages $ - $ - $ 124 Fringe benefits - - 47 Facilities - - 53 Staffing training - - 12 Telephone-communication - - 6 Accounting 380 380 608 Office supplies - - 43 Miscellaneous - - 23 Total administrative cost 380 380 913 Program: Staff training - - 22 Travel in-state - - 63 Dwelling assessment 1,092 1,092 11399 Weatherization materials 9,018 9,018 9,275 Labor 5,038 5,038 6,343 Storage - - 158 Maintenance-repair 559 559 856 Miscellaneous 167 167 151 Total program costs 15,874 15,874 18,267 Total expenditures $ 16,254 $ 16,254 $ 19,180 41 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 02F-4208 CSBG (CFDA #93,569) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE: Grant revenue $ 521,808 $ 521,808 $ 678,089 Total revenue $ 521,808 $ 521,808 $ 678,089 EXPENDITURES: Administrative: Salaries&wages $ 42,831 $ 42,831 $ 100,300 Fringe benefits 22,563 22,563 38,839 Travel 4,689 4,689 10,500 Space(rent/lease) 21,216 21,216 45,000 Consumable supplies 8,042 8,042 6,000 Equipment lease/purchase 33,035 33,035 30,000 Consultant Services 65,354 65,354 67,517 Other costs 42,884 42,884 85,746 Total administrative 240,614 240,614 383,902 Program: Salaries&wages 11,926 11,926 24,523 Fringe benefits 4,205 4,205 9,496 Consultant Services (5,462) (5,462) - Contract services 24,640 24,640 10,000 Subcontractors 233,291 233,291 250,168 Total program 268,600 268,600 294,187 Total expenditures $ 509,214 $ 509,214 $ 678,089 42 ................................................ ........................................................................_......................................................................................................................... .......... ........ ............... .................... .................. ........................................ ..........._............................. ....... _ ................_..... .......... .. .................... .......... ........................................................................................ _ _ _ _1111._ ._....... ...._._.. 11..11 County of Contra Costa Community Services Department Supplemental Schedule of Revenues and Expenditures DCSD Contract No. 03F4308 CSBG (CFDA #93.569) For the year ended June 30,2003 Total Reported Total Budgeted Amount Amount Amount REVENUE; Grant revenue $ 219,440 $ 219,440 $ 645,787 Total revenue $ 219,440 $ 219,440 $ 645,787 EXPENDITURES: Administrative: Salaries&wages $ 50,893 $ 50,893 $ 109,258 Fringe benefits 26,184 26,184 52,816 Travel 4,714 4,714 10,500 Space(rent/lease) 249 249 42,000 Consumable supplies 962 962 7,000 Equipment lease/purchase 7,873 7,873 27,400 Consultant Services 6,187 6,187 10,670 Other costs 27,350 27,350 69,098 Total administrative 124,412 124,412 328,742 Program: Salaries&wages - - 119,398 Fringe benefits - - 27,717 Consultant Se:vzces - - - Contract services - - 20,000 Subcontractors 42,938 42,938 119,930 Tota:program 42,938 42,938 287,045 Total expenditures $ 167,350 $ 167,350 $ 615,787 43 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY (A Component Unit of the County of Contra Costa, California) Independent Auditors' Reports, Management's Discussion and Analysis, Basic Financial Statements, and Supplementary Information For the Fiscal Year Ended June 30,2003 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY For the Fiscal Year Ended June 30,2003 TABLE OF CONTE-NTS Page(s) IndependentAuditors' Report ................. ...... ........ ...... ...................................... ................ ............1 -2 Management's Discussion and Analysis(Required Supplementary Information)..........................3—4 Basic Financial Statements: Statementof Net Assets ......................... ....................................................... ........ ........ ......................5 Statement of Revenues, Expenses and Changes in Net Assets................................................................6 Statementof Cash Flows......... ......................................................... .....................................................7 Notes to the Basic Financial Statements..................................................................... ....................9- 15 Supplementary Information: Combining Schedule of Net Assets by Bond Program.................................................................. 18 - 19 Combining Schedule of Revenues, Expenses and Chang-Is in Net Assets by Bond Program.................. .......... ....................—...........20-21 Combining Schedule of Cash Flows by Bond Program................................................................22 -23 Other Report: Independent Auditors' Report on Compliance and on Internal Control Over Financial Repotting Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards........ ...............—................................... ...............25 u&L INDEPENDENT AUDrrORS`REPORT To the Board of Directors of the County of Contra Costa Public Financing Authority Martinez,California We have audited the accompanying financial statements of the business-type activities of the County of Contra Costa Public :financing Authority (Authority), a component unit of the County of Contra Costa, California., as of and for the year ended June 30, 2003, which collectively comprise the Authority's basic financial statements as listed in the table of contents. These financial statements',are the responsibility of the Authority's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in theUnited States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion,the basic financial statements referred to above present fairly,in all material respects, the financial position of the business-type activities of the Authority as of June 30, 2003, and the respective changes in financial position and cash flows for the year then ended in conformity with generally accepted accounting principles in the United States. In accordance with. Governnwnt Auditing Standards, we have also issued our report dated November 14, 2003 on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The accompanying Required Supplementary Information, such as Management's Discussion and Analysis, is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the :methods of measurement and presentation of the Required Supplementary Information. However,we did not audit the information and express no opinion on it. Oakland,California November 14,2003 is Free Pb:(877)862-22fY,- Free Fast:( )436--4427 O*Md 0-6-r—ty Sacramento Semi Diego lt!G GvwdAve„Suite 13.55 3184-0 Akway k-, :u.e 777 Campus Corms Rd.,Suite 200 6W,1B'°Stmer,Suite 1900 Oaks,--nd,C"Ib n_a 94612 Ccmm Mesa,Ca.°'fbm:192625 Sacniment©,C i ortua 95825 San Diego,CaTsf mia 92101 This gage intentionally left blank, 2 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY Management's Discussion and Analysis For the Year Ended June 30,2003 The following discussion and analysis of the County of Contra Costa Public Financing Authority (Authority) financial performance provides an overview of its financial activities for the fiscal year ended June 30, 2003. Members of the Contra Costa County (County) Auditor-Controller's Office prepared this discussion and analysis.Please react it in conjunction with the Authority's basic financial statements,which begin on page 5. Financial Highlights • In September 2002, the Authority issued $25.44 million in lease revenue bonds (2002 Series 13), with interest rates ranging from 2.0% to 4.6%. The proceeds will be used to defease $25,870,000 of 1992 Certificates of Participation (Consolidated Capital Projects issue), issued by the Contra Costa County Public Facilities Corporation. s Cash receipts from leases during fhe year totaled. $11.7 million and were used to pay debt service requirements for fiscal year 2002/03. • Payments to the County, Contra Costa County Redevelopment Agency (County RDA) and the City of Oakley Redevelopment Agency (Oakley RDA) for capital facilities and equipment during fiscal year 2002/03 were$1 million. Basic Financial Statements The basic financial statements consist of the Authority's Enterprise Fund, which is more fully described in the notes to the basic financial statements. The ;Enterprise Fund is used to account for the financing of public capital improvements provided by the Authority to the County's governmental and proprietary operations and the County RISA and Oakley RDA. The financial statements provide both long-and short- term financial information and information about cash flows. ITnder GASB Statement No. 34, the Authority's financial statements are presented as follows: 1. Staterraent of net assets; 2. Statement of revenues, expenses and change in net assets; and 3. Statement of cash flows. The following table presents the Authority's net assets as of June 30, 2003 and June 30,2002: June 30, June 30, Change 2003 2002 Change($) M Current assets $ 88,626,240 $ 116,063,707 $ (27,437,467) (23.54) Nor-current assets 243,426,133228,973,255 14,442,878 6.31 Total assets 332,042,373 345,036,962 (12,994,589) Current liabilities 73,032,942 105,275,488 (32,242,546) (30.63) Noncurrent liabilities 252,244,064 235,570,000_ 16,674,064 7.08 Tota'liabilities 325,277,006 340,845,488 (15,568,482) (4.57) Net assets restricted for debt service 8 6,765,367 $ 4,192,474 S 2,573,893 51.41 3 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY Management's Discussion and Analysis(Continued) For the Year Ended June 30,2003 The following table presents the Authority's change in net assets for the fiscal year ended June 30,2003: June 30, June 30,2003 2002 Change($) Clzangc(°/g} Operating revenues(expenses): Interest earned on leases $ 11,735,946 $ 10,848,946 $ 887,000 8.18 Reimbursements to Contra Costa County -----�53,811 {122 8 j 2,733�N 4,891.74 Operating income 11,682,135 _1-0,847,868 834,267 7.69 Non-operating revenues(expenses): - Investment income 2,472,513 4,887,608 (2,415,095) (49.41; Interest expense (12,296,099) (11,401,740) (894,359) 7.84 Contributions from.Contra Costa County 287,493 760,000 (472,507) (62.17) Contributions to Contra Costa County 1,467,229 (2,135,054) 33,603,283 (:68.69) Contributions to Contra Costa County Redevelopment Agency (855,484) (1,519,082) 663,598 (43.68) Contributions to City of Oakley Redevelopment Agency _ (143,974} (616,978) 473 004 (7b.6� Total expenses x,068,322) (I0,026,24� 957,924 9_5( 5) Change in net assets 2,613,813 821,622 1,792,191 218.13 Net assets,beginning of year 4,151,554 3,369,852 781,702_ _ 23.20 Net assets,end of year $ 6,765,367 $ 4,191,474 $ 2,573,893 61.41 Long-term Debt The long-term debt of the Authority at .Tune 30, 2003 included $52,105,000 of outstanding tax allocation revenue bonds, $31,700,000 of certificates of participation., $:62,010,000 of lease revenue bonds and $6,130,000 of revenue bonds. The Authority's long-term debt will be repaid through lease agreements with the County, the County RDA and the Oakley RDA that are structured to meet principal and interest requirements when due. During the year, the outstanding debt was reduced by principal payments of $9,065,000. Also, during the year, the Autbority issued $25,440,000 of lease revenue bonds.. More detailed information about the Authority's long-term debt is presented in Note 5 to the basic financial statements. Request for Information This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the Authority's finances and to demonstrate the Authority's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the County of Contra Costa, Auditor-Controller's Office, 625 Court Street,Martinez, California, 94553. 4 CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY Staten-tent of Net Assets June 30, 2003 Assets: Current assets: Restricted cans and cash equivalents 65,912,229 Restricted investments 1.0,038,192 Interest receivable-investments 282,282 Interest receivable-investment in leases 3,053,537 Net investment in leases -current portion 9,340,000 Total current assets 88,626,2403 Nora-current assets: Deferred charges 811,133 Net investment in leases -non current _ 242 6035 000 Total assets 332,042,373 Liabilities: Current liabilities: Accounts payable 3,112,098 Interest(sayable 3,053,537 Due to Contra Costa County 20,864,082 Due to Contra Costa.County Redevelopment Agency 32,436,025 Due to City of Oakley Redevelopment Agency 5,161,208 Deposits payable to Contra Costa County 11,375,205 Total current liabilities 76,002,155 Long-term liabilities: Due within one year 9,360,049 Due in more than one year 242,884,015 Total liabilities 328,246,219 Net assets restricted for debt service $ 3,796,154 See accompanying notes to the basic financial statements. 5 CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY Statement of Revenues, Expenses and Ganges in Net Assets For the Fiscal Year Ended June 30, 2003 Operating revenues: Interest earned on leases from Contra Costa County $ 11,735,946 Operating expenses: Fiscal charges and amortization expense - 53,811 Operating income 11,682,135 Nonoperating revenues (expenses): Investment income 2,472,513 Interest expense (12,296,099) Contributions to Contra Costa County (1,254,411) Contributions to Contra Costa County Redevelopment Agency (855,484) Contributions to City of Oakley Redevelopment Agency (143,974) Total nonoperating revenues (expenses) (12,077,455)_ Change in net assets (395,320) Net assets,beginning of year 4,191,474 Net assets, end of year $ 3,796,154 See accompanying notes to the basic financial statements. 6 .................... ................................................... -.......................................................................... - -......... ......... .......... ..__ _ - ......... ................ .. ........... - ......... ........... .......... ......... - ......... ......... ......... - - -. ......... ..................... - ........................................................_ - -............................................................._.. .. ........ .......... ....... -_ CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY Statement of Cash Flaws For the Fiscal Year Ended Juane 30, 2003 Cash receipts from lessee,principal portion 8,850,023 Cash receipts from lessee, interest portion 11,991,203 Payments to Contra Costa County 11,915) Net cash provided by operating activities 20,829,311 Cash flows from noncapital financing activities: Payments to Contra Costa County (32,615,855) Payments to Contra Costa County Redevelopment Agency (1,178,568) Net cash used in noncapital and related financing activities (33,794,423) Cash flows from capital financing activities: Proceeds from bond issuance 25,757,435 Cash receipts from Contra Costa County Public Facilities Corporation 3,532,439 Cash receipts from Contra Costa County 381,163 Cash payments to refunded bond escrow agent (26,996,064) Cash payments for principal on bands (9,065,000) Cash payments for interest on bonds (12,354,750) Cash payments for cast of issuance on bonds (441,378) Net cash used ins capital financing activities (19,186,155) Cash flows from investing activities: Sales of investments 14,946,251 Cash received from earnings on investments and cash equivalents 2,564,077 Net cash provided by investing activities 17,510,328 Net change in cash and cash equivalents (14,640,939) Cash and cash equivalents,beginning of year 80,553,168 Cash and cash equivalents, end of year $ 65,912,229 Reconciliation of operating income to net cash provided by operating activities: Operating income $ 11,682,135 Adjustments to reconcile operating income to net cash provided by operating activities: Amortization of deferred.charges 41,800 Changes in operating assets and liabilities: Decrease in investment in lease 9,065,000 Decrease in interest receivable -investment in lease 40,280 Increase in accounts payable 96 Net cash provided by operating activities $ 20,829,311 See accompanying notes to the basic financial statements. 7 This page intentionally left blank. 8 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY Notes to the Basic Financial Statements For the Year Ended June 30, 2003 NOTE 1--REPORTING ENTITY The County of Contra Costa Public Financing Authority (Authority) is a joint powers authority, organized pursuant to a Joint Exercise of Powers Resolution (Resolution), dated as of April 7, 1992,between the County of Contra Costa(County) and the Contra Costa County Redevelopment Agency (Redevelopment Agency). The Resolution was entered into pursuant to the Government Code of the State of California, commencing with Section 5500. The Authority is a separate entity constituting a public instrumentality of the State of California and was formed for the public purpose of assisting in financing and refinancing projects for the benefit of the County and Redevelopment Agency. The basic financial statements present only the Authority and are not intended to present fairly the financial position and charges in financial position and cash flows of the County or the Redevelopment Agency in conformity with accounting principles generally accepted in the United States of America (GAAP). The Board of Supervisors of the County constitutes the Board of Directors of the Authority. As such, the Authority is an integral part of the County, and accordingly, the accompanying basic financial statements are blended as a component unit within the basic financial statements prepared by the County. A component unit is a separate legal entity. Administrative and related normal business expenses incurred in the day-to-day operations of the Authority are provided by the County and Redevelopment Agency and are not included in the accompanying basic financial statements. Such expenses are considered insignificant to the Authority's operations. The Authority obtains financing for the County and Redevelopment Agency sponsored projects using lease agreements signed by the County and Redevelopment Agency as collateral. The agreements provide sufficient resources to repay the debt incurred by the Authority to finance projects. NOTE 2-m SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis ofPresentation and Accounting All activities of the Authority are accounted for within a single enterprise fund. An enterprise fund is used to account for the Authority's operations because the County and Redevelopment Agency's lease payments to the Authority secure the debt issued by the Authority. The accounting and financial reporting treatment applied to the Authority is determined by its measurement focus. The transactions of the Authority are accounted for using the flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operations are included on the statement of net assets. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the fund's principal ongoing operations. The principal operating revenue of the Authority is lease interest income from the County and the Redevelopment Agency. Operating expenses for the Authority include the cost of administrating the services. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 9 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY Notes to the Basic Financial Statements(Continued) For the Year Ended.Tune 30, 2003 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the proprietary fund financial statements to the extent that dose standards do not conflict with or contradict guidance of the GASB. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The Autharity has elected not to follow subsequent private-sector guidance. (b) Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original purchase maturities of three months or less. (e) Investment Valuation Investments in nonparticipating interest earning contracts (including guaranteed investment contracts) are reported at cost, and all other investments are reported at fair value. Fair value is defined as the amount that the Authority could reasonably expect to receive for an investment in a current sale between a willing buyer and seller and is generally measured by quoted market prices. (d) Net Investment in Leases As detailed in Note 4, debt service on the outstanding lease revenue bonds are funded with lease payments made by the County and the Redevelopment Agency to the Authority for the use of equipment and facilities acquired or constructed with bond proceeds issued by the Authority. In the lease agreements relating to the bonds, the County and the Redevelopment Agency have covenanted to make rental payments in amounts corresponding to the Authority's debt service requirements and related costs. Net investment in 'Leases reflects the present value of remaining future lease payments due from the County and the Redevelopment Agency. To the extent that funds are unexpended upon completion of all projects, such funds will be used to retire outstanding debt and rental payments required from the County and the Redevelopment Agency will be reduced accordingly. (e) Net Assets Net assets comprise various net earnings from operating and nonoperating revenues and expenses. Net assets are classified as restricted fior debt service. This consists of funds held by the trustee for the repayment of debt principal and interest or as reserves. Estimates The preparation of basic financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. 10 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY Notes to the Basic Financial Statements(Continued) For the Year Ended Tune 30,2003 NOTE 3—INVESTMENTS Provisions of the Authority's bond trust agreements require that certain accounts be established. These accounts are held by trustees and fiscal agents for debt service payments, reserves and capita` improvernent projects. These funds have been invested only as permitted by specific state statues governing their investment or applicable .Authority ordinance, resolution or bond indenture. Investments have been classified as restricted on the statement of net assets because their use is litnited by bond covenants. The Authority also has restricted cash pooled with the County. These investments are held in individually directed investment accounts with the County Treasurer for the purpose of maximizing earnings until principal and interest payments come due. Statutes authorize the County to invest in obligations of the United States Treasury, federal agencies and municipalities; State Treasurer's Local Agency Investment Fund (LAIF); commercial paper rated A-1 by the Standard & Poor's Corporation or P-1 by Moody's Commercial Paper record; bankers' acceptances; repurchase agreements; reverse repurchase agreements; rnediu:�-term notes; negotiable certificates of deposits; mutual funds and investments in accordance writli the statutory provisions governing the issuance of bonds. As of Tune 30, 2003, the Authority's investment in the California .Asset Management Program (CAMP) pool is $11,850,012. A board of five trustees who are officials or employees of public agencies has oversight responsibility for CAMP. The value of the pool shares in CAMP, which may be withdrawn, is determined on an amortized cost basis, which is different than the fair value of the Authority's position in the pool. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of Eve members as designated by State Statute. The value of the pool shares in LA1F that may be withdrawn is determined on the amortized cost basis,which is different from the fair value of the Agency's position in the pool. In accordance with Government Code Sections 27130-27137, an investment oversight committee reviews the quarterly investment reports prepared by the Treasurer. The fair value of the Authority's position in the pool is the same as the value of the pool shares. Additional information regarding custodial risk categorization of the Authority's pooled investments is presented in the notes to the Redevelopment Agency's basic financial statements. Infonrnation is not available on whether the various mutual funds in which the Authority has invested used,held, or wrote derivative financial products during the year ended.Tune 30, 2003. Custodial Credit Risk For financial reporting purposes, investments are categorized to give an indication of the level of custodial credit risk assumed by the entity at year-end. Category 1 includes investments that are insured or registered, or with securities held by the Authority or its agent in the Authority's name. Category 2 includes uninsured and unregistered investments, with securities held by the counterparty's trust department or agent in the Authority's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent, but not in the Authority's name. COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY Notes to the Basic Financial Statements(Continued) For the Year Ended June 30, 2003 NOTE 3—INVESTMENTS(Continued) All investments held by the Authority at June 30, 2003 were not subject to custodia'_ credit risk, and are summarized as follows: Fair Value Guaranteed inves rnent contracts $ 10,038,192 Mutual funds 24,586,870 California Asset Management Program—2A7-like pool 11,850,012 State of California Local Agency Investment Fund 27,342,342 Pooled cash with Contra Costa County 2,133,005 Total investments $ 75,950,421 NOTE 4-NET INVESTMENT IN LEASES The Authority's net investment in leases at June 30, 2003 is as follows: Tax A-ocation Certificates Lease Fiscal Year Ending Revenue of Revenue Revenue June 30, Bonds Participation Bonds Bonds Tota' 2004 3,785,479 2,745,884 14,189,779 804,984 21,526,126 2005 3,783,518 2,741,648 14,202,006 768,673 21,495,845 2006 3,767,635 2,744,288 14,218,904 776,520 21,507,347 2007 3,767,963 2,748,264 14,233,114 792,310 21,541,651 2008 3,775,261 2,747,908 14,270,996 566,324 21,360,489 2009—2013 18,833,889 13,730,375 60,776,243 2,668,361 96,008,868 2014—2018 18,783,039 13,739,125 54,979,428 1,897,883 89,399,475 2019—2023 18,690,301 8,234,587 41,441,129 - 68,366,018 2024—2028 18,852,059 - 29,699,662 - 48,551,721 2029-2032 3,827,771 - - - 3,827,772 Total future minimum lease payments to be - received 97,866,915 49,432,079 258,011,261 8,275,055 413,585,312 Less unearned interest income (45,761,915) (17,732,079) (96,001,261) (2,145,055) (161,640,310) Net investment in lease 52,1105,000 31,700,000 162,010,000 6,130,000 251,945,000 Less current portion (960,000) (1,145,00 (6,720,000) (735,000) (9,560,000) Long-term portion $51,145,000 $30,555,000 $ 155,290,000 $5,395,000 $242,385,000 12 ........................ ................................................................ ......................................._.............................. ........ . ......... ......... . ................. ......................................................................... ...... ......... ................._ _. ................. .................................................................................................. COUNTY OF CONTRA,COSTA PUBLIC FINANCING AUTHORITY Notes to the Basic Financial Statements(Continued) For the Year Ended;Tune 30, 2003 NOTE 5-LONG-TERM ERM DEBT Changes in long-term deist during the fiscal year ended June 30, 2003 were as follows: Amount Due within One Typeedness Jul 1,2002 Additions Retirements June 30,2003 Year ^of indebtedness - --- Tax Allocation Revenue Bonds: 1992 Series A $ 7,425,000 $ - $ 165,000 $ 7,260,000 S 175,000 1995 Series 21525,000 - 50,000 2,475,000 50,000 1999 Series A 43,070,000 - 700,000 42,370,000 735,000 53,020,000 - 915,000 52,105,000 960,000 Certificates of Participation: Series of:997 32,795,000 - 1,095,000 31,700,000 1,145,000 Lease Revenue Bonds: 1998 Refunding Series A 23,385,000 - 550,000 22,835,000 570,000 1999 Refunding Series A 65,775,000 - 2,885,000 62,890,000 3,000,000 2001 Refunding Series A 17,595,000 - 450,000 17,145,000 465,000 2001 Refunding Series B 23,775,000 - 525,000 23,250,000 545,000 2002 Refunding Series A 12,650,000 155,000 12,495,000 330,000 2002 Refunding Series B - 25,440,000 2,045,000 23,395,000 1,810,000 43,180,000 25,440,000 6,610,000 152,010,000 6,720,000 Revenue Bonds,2001 Series A 6,575,000 - 445,000 6,130,000 735,000 Total $235,570,000 $25,440,000 $9,065,000 $ 251,945,000 $ 9,560,000 Long-tern debt at June 30, 2003 consisted of the following: Annual Princ;pal Original Outstanding Interest Installments Issue at June 30, Type of indebtedness(purpos) Maturity Rates (in thousands} Amount 2003 Tax allocation revenue bonds: 1992 Series A 2024 5.25-7.00% $ 155-645 $29,315,000 $ 7,260,000 1995 Series B 2026 4.25-6.90 45-200 2,735,000 2,475,000 1999 Series A 2029 4.00-5.13 475-3,250 44,615,000 43,770,000 52,105,000 Certificates ofparticipation: Series of 1997 2021 3.55-5.10 655-2,610 34,910,000 31_,700,000 Lease revenue bonds: 1998 Refunding Series A 2025 3.80-5.15 525- 1,745 24,695,000 22,835,000 1999 Refunding Series A 2028 3,00-5.25 1,245-3,855 74,685,000 62,890,000 2001 Refunding Series A 2026 3.15-4.15 345-1,165 18,030,000 17,145,000 2001 Refunding Series B 2027 4.25-5.20 525-1,615 23,775,000 23,250,000 2002 Refunding Series A 2027 2.75-5.00 155-760 12,650,000 12,495,000 2002 Refunding Series B 2019 2.00-4.60 930-2,090 25,440,000 23,395,000 162,010,000 Revenue bands: 2001 Series A 9/1/02—9/1/14 5.40-6.00 390-555 9,640,000 _ 6,130,000 Total 5251,945,000 13 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY Notes to the Basic Financial Statements(Continued) For the Year Ended June 30, 2003 NOTE 5-LONG-TERM DEBT(Continued) Bond Issuance In September 2002, the Authority issued $25,440,000 of Lease Revenue Bonds (2002 Series B), of which the costs of issuance amounted to $429,678. The proceeds will be used to anance the construction of various capital projects of the County,purchase a reserve fund surety bo:.d and pay costs of issuance relating to the 2002 Series B bonds. Repayment Requirements Feature debt service requirements for the outstanding long-team debt, including sinking fund payments, are as follows: Tax Allocation Revenue Bonds Certificates of Participation Year ending.Tune 30: Princi a__ Interest ?principal Interest 2004 960,000 2,825,479 1,145,000 1,600,884 2005 1,005,000 2,778,518 1,190,000 1,551,648 2006 1,040,000 2,727,635 1,245,000 1,499,288 2007 1,095,000 2,672,963 1,305,000 1,443,264 2008 1,160,600 2,615,261 1,365,000 1,382,908 2009-2013 6,775,000 12,058,889 7,875,000 5,855,375 2014-2018 8,905,000 9,878,039 10,135,000 3,604,125 2019-2023 11,750,000 6,940,301 7,440,000 794,588 2024—2028 15,685,000 3,167,059 - - 2029—2032 3,730,000 97,772 - Total requirements $ 52,105,000 $45,761,915 $ 31,700,000 $ 17,732,079 Lease Revenue Bonds _ Revenue Bonds Year ending June 30: Principal. __. Interest Principal interest 2004 6,720,000 7,469,779 515,000 289,984 2005 61980,000 7,222,006 500,000 268,673 2006 7,255,000 6,963,904 530,000 246,520 2007 7,540,000 6,693,114 570,000 222,310 2008 7,860,000 6,410,996 365,000 201,324 2009—2013 33,225,000 27,551,243 1,945,000 723,361 2014—2018 35,760,000 19,219,428 1,705,000 192,883 2019—2023 30.320,000 11,121,129 - - 2024—2028 26,350,000 3,349,662 - - 2029—2032 - - 'fatal requirements $ 162,010,000 $96,001,261 $6,130,000 $2,145,055 14 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY Notes to the Basic Financial Statements(Continued) For the Year Ended June 30, 2403 NOTE 6--RELATED PARTY TRANSACTIONS .ease.Agreements with the County and Redevelopment Agency The Authority receives all of its lease revenues from the County and the:Redevelopment Agency. Tl:e County leases certain buildings and leasehold improvements from the Authority under leases through June , 2028. The Redevelopment Agency leases certain buildings and leasehold improvements from the Authority under leases through August 1, 2025. Lease payments made during the fiscal year ended June 30,2003 were$11,735,946. NOTE 7-RISK.MANAGEMENT The Authority is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets, errors and omissions; and natural disasters. The Authority is included as part of the County's self-insurance program for public liability. As such, the Authority is obligated to reimburse the County for the unfavorable outcome of any claims paid on behalf of the Authority. At June 30, 2003, there are no significant claims outstanding in the self-insurance program for which the Authority is obligated. There have been no claims during the past three fiscal years that have exceeded excess insurance coverage. 15 This page intentionally left blark. 16 ... .............. SUPPLEMENTARY INFORMATION ANIS OTHER REPORT 17 CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY Combining Schedule of Net Assets June 30,2003 1992 1995B 1999 1997 Tax Tax Tax Certificates Allocation Allocation_ Allocation of Bonds Bonds Bonds Participation. Assets: Current assets: Restricted cash and cash equivalents $ 12,824,188 $ 877,457 $ 27,802,988 $ 11364,595 Restricted investments - - 3,938,938 2,721,266 Interest receivable-investments 13,162 766 122,762 7 1,164 Interest receivable-investment in leases 214,067 68,619 903,978 667,034 Internal balances - - -Net investment in leases-current portion 175,000 50,000 735,000 1,145,000 Total current assets 13,226,417 996,842 33,503,666 5,969,059 Noncurrent assets: Deferred charges - - -Net investment in leases-not,current 7,085,000 2,425,000 41,635,000 30,555,000 Total assets 20,311,417 3,421,842 75,138,666 36,524,059 Liabilities: Current liabilities: Acco.:nts payable - - _ Interest payable 214,067 68,619 903,978 667,034 Dae to Contra Costa County 154 2 12,340 1,321,392 Due to Contra Costa County RDA 9,856,367 454,999 22,124,659 Due to Oakley RDA 1,275,113 - 3,886,095 s Deposits payable to Contra Costa County 665,074 219,046 3,938,938 2,752,1138 Total current liabilities 12,010,775 742,666 30,866,010 4,740,564 Long-term liabilities: Due within one year 175,000 50,000 735,000 1,145,000 Due in more than one year 7,085,000 2,425,000 41,635,000 30,555,300 Totalliabilities 19,270,775 3,217,666 73,236,010 36,440,564 Net assets restricted for debt service $ 1,040,642 $ 204,176 $ 1,902,656 $ 83,495 18 1998 1999 2001 A 2001 B 2002 A 2002 B Lease Lease Lease Lease 2001 lease Lease Revenue Revenue Revenue Revenue Reassessment Revenue Revenue Bonds Bonds Bonds Bonds Bonds Bonds Bonds Total $ 22,339 $ 9,678,865 $ 1,103,915 $ 4,331,967 $ 386,915 $ 6,875,684 $ 643,316 $65,912,229 1,792,629 1,585,359 - - - - - 10,038,192 42,732 218 984 - 26 30,313 155 282,282 478,805 249,422 63,214 96,235 193,323 45,707 73,133 3,053,537 - (39,920) - 39,920 - - 570,000 3,000,000 465,000 545,000 515,000 330,000 1,810,000 9,340,000 2,906,505 14,473,944 1,633,113 4,973„202 1,095,264 7,321,624 2,526,604 88,626,240 - - - - - 406,325 404,808 811,133 22,265,000 59,890,000 16,680,000 22,705,000 5,615,000 12,165,000 21,585,000 242,605,000 25,171,505 74,363,944 18,313,113 27,678,202 6,710,264 19,892,949 24,516,412 332,042,373 - 3,112,098 _ - - - - 3,112,098 478,805 249,422 63,214 96,235 193,323 45,707 73,133 3,053,537 22,102 6,521,825 1,104,899 4,331,967 - 6,905,930 643,471 20,864,082 - - - - - 32,436,025 A - - - 5,161,208 1,792,629 - - _ - 337,078 - 1,670,302 11,375,205 2,293,536 9„883,345 1,168,113 4,428,202 530,401 6,951,637 2,386,906 76,002,155 570,000 3,000,000 465,000 545,000 515,000 330,000 1,830,049 9,360,049 22,265,000 59,890,000 16,680,000 22,705,400 5,615,000 12,165,000 21,864,015 242,884,015 25,128,536 72,773,345 18,313,113 27,678,202 6,660,401 19,446,637 26,080,970 328,246,219 $ 42,969 $ 1,590,599 $ - $ - $ 49,863 $ 446,312 $ (1,564,558) $ 3,796,154 19 CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY Combining Schedule of Revenues,Expenses and Changes in Net Assets For the Fiscal Year Ended June 30,2003 1992 1995B 1999 1997 Tax Tax ax Certificates Allocation Allocation Allocation_ of Bonds Bonds Bonds Participation Operating revenues: Interest earned on leases from Contra Costa County $ 519,016 $ 163,560 $ 2,198,179 $ 1,628,030 Operating expenses: Reimbursements to Contra Costa Conray 745 51 1,083 - Operating income 518,271 163,509 2,197,096 1,628,030 Nonoperating revenues(expense): Ir vestdnent incorne 188,315 2,487 1,077,073 191,994 interest expense (514,709) (164,914) (2,183,169) (1,704,826) Contributions from Contra Costa County Contributions to Contra Costa County - (6,349) (451,335) Contributions to Contra Costa County RDA (144,114) - (711,373) - Contributions to Oakley RI7A (17,870) - (126,104) - Tranfers in/(out) - - Tota nonoperating(expenses) (488,378) (168,776} (1,943,570) (1,964,167) Change in net assets 29,893 (5,267) 253,526 (336,137) Net assets,beginning of year,as previously reported 1,010,749 209,443 1,649,130 419,632 Net assets,end ofyear $ 1,040,642 $ 204,176 $ 1,902,656 $ 83,495 20 ............................... _............................................................ .............................................................................._. ......... ......... ..................... ....... ......... ............ ......... .................................. _......................................................... ......... .......................................................................................... ................................................................................................... 1998 :999 2001 A 2001 B 2002 A 2002 B Lease Lease Lease Lease 2001 Lease Lease Revenue Revenue Revenue Revenue Reassessment Revenue Revenue Bonds Bonds Bonds Bonds Bonds Bands Bonds Total $ 1,048,078 $ 2,660,406 $ 772,595 $ 1,175,269 $ 266,623 $ 552,390 $ 751,800 $11,735,946 - - - - 10,132 16,930 24,870 53,811 1,048,078 2,660,406 772,595 1,175,269 256,491 535,460 726,930 11682,135 103,257 309,447 48,468 260,055 5,002 172,101 114,314 2,472,51-3 (1,151.,034) (3,098,845) (772,595) 111,175,269) (244,918) (552,391) (733,429) (12,296,099) (323) (242,828) (48,468) (260,055) (21,637) (221,345) (2,071) (1,254,411) _ _ _ _ - (855,484) (143,974) 1,957,795_ - - - (287,493) _ (1,670,302) (1,048,100; (1,074,431) {772,595} (1,175,269) (261,553) (889,128) (2291,488} (12,077,455) (22) 1,585,975 - - (5,062) (353,668) (1,564,558) (395,320) 42,991 4,624 - - 54,925 799,980 - 4,191,474 $ 42,969 $ 1,590,599 $ - $ - $ 49,863 $ 446,312 $ (1,564,558) $ 3,796,154 21 CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY Combining Statement of Cash Flows For the Fiscal Year Ended June 30,2003 1992 1995B 1999 1997. Tax Tax Tax Certificates Allocation Allocation Allocation of Bonds Bonds � Bonds Participation Cash flows from operating activities: - — - - Cash receipts from lessee,principal portion $ 165,000 $ 50,000 700,000 $ 1,095,000 Cash receipts froze lessee,interest portion 523,760 164,685 2,199,03 1,547,422 Payments to Contra Costa County (627) (73) (1,083) - Net cash provided by(used in)operating activities 688,133 214,612 2,897,980 2,742,422 Cash flows from noncapital financing activities: Transfer to 1999 Lease Revenue Bonds(reserve account) - - _ Payments to Contra.Costa Colony - - (156,31.2) '1,636,696) Payments to Contra Costa County RDA (699,013) (3,907) (475,648) - Net cash(used in)noncapital and related financing activities (699,013) (3,907) (631,960) (1,536,696) Cash flows from capita'financing activities: Proceeds from bond issuance - _ d Cash receipts from Contra Costa County Public Fac.Corp - Cash receipts from Contra Costa County - Cash payments to refunded bond escrow agent - _ Cash payments for principal on bonds (1.65,000) (50,000) (700,000) (1,095,0001) Cash payments for interest on bonds (519,453) (165,039) (2,184,053) (1,724,218) Cash payments for bonds cost of issuance Net cash provided by(used in)capital and related financing activities (684,453) (216,039) (2,884,053) (2,819,218) Cash flows from investing activities: Sales of investments - - ;,760,069 148,416 Cash.received from earnings on investments and cast;equivalents 176,828 11,951 1,05{,027 189,634 Net cash.provided by investing activities 1.76,828 1.1,951 2,811,096 338,050 Net change in cash and cash equivalents (518,505) 6,617 2,193,053 (1,375,442-1 Cash and cash equivalents,beginning of year 13,342,593 870,840 25,509,925 2,740,037 Cash and cash equivalents,end of year $12,824,188 877,457 $ 27,802,988 $ 1,364,595 Reconciliation of operating loss to net cash used in operating activities: Operating income(loss) $ 518,271 $ 163,509 $ 2,197,096 $ 1,628,030 Adjustments to reconcile operating income(loss) to net cash used in operating activities: Amortization of deferred charges - - - Changes in operating assets and liabilities: (Increase)in investment in lease 165,000 50,000 700,000 1,095,003 (Increase)in interest receivable-investment in lease 4,744 1,125 884 19,392 (Increase)in accounts payable 118 (22) - - Net cash provided by operating activities $ 688,133 $ 214,612 $ 2,897,980 $ 2,742,422 22 1998 1999 2001 A 2001 B 2002 A 2002 B Lease Lease Lease Lease 2001 Lease Lease Revenue Revenue Revenue Revenue Reassess:rent Revenue Revenue Bonds Bonds Bonds Bonds Bonds Bonds Bonds iota: $ 550,000 $ 2,670,023 $ 450,000 $ 525,000 $ 445,000 $ 155,000 $ 2,045,000 $ 8,850,023 1,057,588 2,885,000 773,870 1,177,128 331,275 552,745 678,667 11,991,203 - - - - (10,132) - - (11,915} 1,607,588 5,555,023 1,223,870 1,702,128 766,143 707,745 _ 2,723,667 20,829,311 - 1,957,795 - - - (287,493) (1,670,302) - (5,286,538) (5,191,459) (15,137,314) - (5,207,536) - (32,635,855) - - (1,178,568) (3,328,743) ® (5,191,459) (15,137,314) - (5,495,029) (1,670,302) (33,794,423) 25,757,435 25,757,435 3,532,439 3,532,439 381,163 381,163 - (26,996,064) (26,996,064) (550,000) (2,885,000) (450,000) (525,000) (445,000) (155,000} (2,045,000) (9,065,000) (1,150,544) (3,108,462) (773,870) (1,177,128) (309,570) (552,740 (678,667) (12,354,750) (11,700) (429,678) (441,378) (1,710,544) (5,993,462) (1,223,870) (1,702,128) (754,570) (719,446) (478,372) (19,186,155} - 13,037,766 - - - - - 14,946,251 103,257 364,242 54,632 395,238 4,976 143,469 68,323 2,564,077 103,257 13,402,008 54,632 395,238 4,976 143,969 68,323 17,510,328 301 9,634,826 (5,136,827} (14,742,076) 16,549 (5,362,761) 643,316 (14,640,939) 22,038 _ 44,039 6,240,742 19,074,043 370,366 12,238,445 - 80,553,168 22,339 $ 9,678,865 $ 1,103,915 $ 4,331,967 $ 386,915 $ 6,875,684 $ 643,316 $ 65,912,229 $ 1,048,078 $ 2,660,406 $ 772,595 $ 1,175,269 $ 256,491 $ 535,460 $ 726,930 $ 11,682,135 - - - - - 16,930 24,870 41,800 550,000 2,885,000 450,000 525,000 445,000 155,000 2,045,000 9,065,000 9,51,0 9,617 1,275 1,859 64,652 355 (73,133) 40,280 - - - - - 96 $ 1,607,588 $ 5,555,023 $ 1,223,870 $ 1,702,128 $ 766,143 $ 707,745 �$ 2,723,667 $ 20,829,311 23 This page intentional Ily left blank. 24 .......................... . . . ............................................... . .................... .......... ............... ........ ..................................................................... ................... Caporicci&Larson f C'ertifted Public Accountants INDEPENDENT AUDITORS'REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors of the County of Contra Costa Public Financing Authority Martinez,California We have audited the accompanying basic financial statements of the County of Contra Costa Public Financing Authority (Authority), a component unit of the County of Contra Costa, California (County), as of and for the year ended June 30,2003, and have issued our report thereon dated November 14,2003. We conducted our audit in accordance with generally accepted auditing standards in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. ComRliance As part of obtaining reasonable assurance about whether the Authority`s basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, noncompliance with which could have a direct and material effect on the determination of basic financial statement mounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly,we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Governmen t Auditing Standards. Internal Control Over Financial Reportinn� In planning and performing our audit, we considered the Authority's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal contrail components does not reduce to a relatively low level the risk that material misstatements in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving internal control over financial reporting and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of the Authority's management and Board of Directors and is not intended to be and should not be used by anyone other thann these specified parties. Oakland,California November 14,2403 Ib.0 Free Ph:(877)862-22£'ia3 Toll Free Fax:1,866)436--0927 53akkand ormse County sacramento San Diego S W GiandA-,e.,State 1365 31184-DAI-•wavAwnue 777 Csnmpus Crammoais Rd.,Sui:e 200 SGC°B"Street,suite 1900 oa,dp_d,call&rnla 94612 Costa Men,Cali€mia 92626 Sacraments,Cafifor:zia 95625 Sx^_Diego,Ca'—?arnL 92101 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION FINANCIAL STATEMENTS JUNE 30, 2003 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT 1 MANAGEMENT'S DISCUSSION AND ANALYSIS 3 - 5 FINANCIAL SECTION: Basic Financial Statements: Component-amide Financial Statements: Statement of Net Assets 9 Statement of Activities and Changes in Net Assets 10 Fund Financial Statements: Governmental Funds: Balance Sheet 12 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 13 Statement of Revenues, Expenditures and Changes in Fund Balances 14 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances of the Statement of Activities 15 Proprietary Funds: Statement of Net Asset 16 Statement of Revenues, Expenses and Changes in Net Assets 17 Statement of Cash Flows 18 NOTES TO FINANCIAL STATEMENTS 19 - 29 SUPPLEMENTARY INFORMATION: Balance Sheet/Statement of Net Assets - 1992 Certificates of Participation (Board of Education Central Office Building) 32 1997 Refunding Certificates of Participation (Merrithew Memorial Hospital Replacement Project) 34 Statements of Revenues, Expenditures and Changes in Fund Balances/Statement of Activities - 1992 Certificates of Participation (Board of Education Central Office Building) 36 1992 Certificates of Participation (Consolidated Capital Facilities Project) 38 1997 Refunding Certificates of Participation (Merrithew Memorial Hospital Replacement Project) 40 Caporied&Larson Corti ted Public Accountants INDEPENDENT AUDITORS'REPORT Board of Directors of the Contra Costa County Pubic Facilities Corporation Martinez,California We have audited the accompanying financial statements of the governmental activities and each major fund of the Contra Costa County Public Facilities Corporation (Corporation), a component unit of the County of Contra Costa, California (County), as of and for the year ended June 30, 2003, which collectively comprise the Corporation's basic financial statements as listed in the table of contents. These basic financial statements are the responsibility of the Corporation's management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also - includes assessing the accounting principles used and significant estimates madeby management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of the Corporation as of June 30,2003, and the respective changes in financial position for the year then ended in conformity with generally accepted accounting principles in the United States. The accompanying Required Supplementary Information, such as management's discussion and analysis, as listed in the table of contents is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures,which consisted principally of inquires of management regarding the methods of measurement and presentation of the Required Supplementary Information. However, we did not audit the information and express no opinion on it. Cour audit was conducted for the purpose of forming an opinion on the basic financial statements. The accompanying supplementary information is presented for purpose of additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Oakland,California November 14,2003 Toll F-me Ph:(877)862-2200 Tol:Free Fax:(BC>-)436--0927 Ozklznd €3rango County satra7' entto San Dim 180 Gm. Ave.,5:::;W 1365 3184-DAim-ay Svenue 777 C==Js Comtsmors Ad.,SWIte 2G0 600"B'stme,,Stdte 1900 OaUird,Caafbrnla 44512 Costa Mesa,CaMrnla 92626 Sacramc-nto,CaLorr?a 95825 sari.Diego,Cr1.4" ' is 92101 MANAGEMENT' S DISCUSSION ANIS ANALYSIS z CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2003 As management of the Contra Costa County Public Facilities Corporation (the "Corporation") , a component unit of Contra Costa County (the "County") , we offer readers of the Corporation's financial statements this narrative overview and analysis of the financial activities of the Public Facilities Corporation for the fiscal year ended June 30, 2003. We encourage readers to consider the information presented here in conjunction with the Public Facilities Corporation's financial statements, which begin on page 9. Financial highlights The assets of the Public Facilities Corporation exceeded its liabilities at June 30, 2003 by $11,354,832 (net assets) . Total assets are $143,897,068 and total liabilities are $132,542,236. As of the close of the current fiscal year, the Corporation's fund balances/net assets reported a balance of $11,354,832. This represents a decrease of $4,194,738 from the prior year, of which $3,535,588 was attributable to the defeasement of the 1992 Certificates of Participation related to the Consolidated Capital Facilities Project. Total revenues for the year were $7,941,629 with total expenses being $8,535,177. The deficiency of revenues over expenditures was $593,548. The Corporation's capital outlays for the year were $20,417. Overview of the Financial Statements The discussion and analysis is intended to serve as an introduction to the Corporation's basic financial statements. The basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains the individual issue financial statements and a report of all combining funds as supplementary information in addition to the basic financial statements themselves. COMPONENT-WIDE FINANCIAL STATEMENTS: The component-wide financial statements are designed to provide readers with a broad overview of the Corporation's finances, in a manner similar to a private- sector business. The statement of net assets presents information on all of the Corporation's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Corporation is improving or deteriorating. The statement of activities presents information showing how the Corporation's net assets changed during the most recent year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of timing of related cash flows. 3 FUND FINANCIAL STATEMENTS: A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Corporation, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the Corporation can be divided into two categories: governmental funds and proprietary funds. Government Fund Government funds are used to account for essentially the same function reported as governmental activities in the government-wide financial statements. However, unlike the component-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the component-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the component-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-terns financing decisions. The Corporation maintains two individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in the fund balances for the Education and Facility Lease Funds, which are considered major funds. Proprietary funds account for operations that provide services to the general public on a continuing basis or to internal Corporation departments. Proprietary funds provide the same type of information contained in the business-type activities portion of the component-wide financial statements, only in more detail. The Corporation maintains one type of proprietary fund, an enterprise fund. Enterprise funds report the same functions presented as business-type Activities in the component-wide financial statements. The Corporation uses enterprise funds to account for the 1997 Certificates of Participation regarding the Merrithew Memorial Hospital Replacement Project, which is classified as a major fund. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the component-wide and fund financial statements. The notes to the financial statements can be found on pages 19 through 29 of this report. Supplementary Information The individual issue financial statements are presented for purposes of additional analysis only. These statements can be found on pages 32 through 41 of this report. Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. in the case of the Corporation, assets exceeded liabilities by $11,354,832 at June 30, 2003. By far the largest portion of the Corporation's assets (91 percent) reflects its lease payments receivable from the County. 4 ......._...................................................................................................................... LONG-TERM DEBT: At the and of the fiscal year, the Corporation had total debt outstanding of $131,380,000. The total debt outstanding is comprised of two remaining certificates of participation payable: $2,400,000 related to the 1992 Board of Education Central Office Buildings and $128,980,000 related to the 1997 Refunding Merrithew Memorial Hospital Replacement Project. The latest ratings assigned by the Moody's Rating Conmtittee are Aaa rating for both certificates of participation. Management is not aware of any changes in these ratings during the year. During the current fiscal year the 1992 Certificates of Participation related to the Consolidated Capital Facilities Project were defeased. The related total outstanding debt of $25,870,000 was paid off in full on December 2, 2002. The liability for those Certificates has been removed from the debt of the Corporation. The purpose of the defeasement was to lower the debt service costs for the County- 5 FINANCIAL SECTION 7 8 _........................_............................................._......,.. _.. _........................................................................................................................................................................................................................... CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENT OF NET ASSETS JUNE 30, 2003 Primary Government Governmental Business-Type Activities Activities Total ASSETS: Cash and investments (Note 3) $ 497,217 $ 10,857,61.5 $ 11,354,832 Accrued interest receivable 31,123 1,131,113 1,162,236 Lease payments receivable (Note 4) 2,400,000 128,980,000 131,380,000 Tectal Assets $2,928,340 $140,968,728 $1.43,897,068 LIBILITIES: Accrued interest payable $ 31,123 $ 1,1.31,1.13 $ 1,162,236 Long-term liabilities _ Due within one year (Note 5) 340,000 3,730,000 4,070,000 Due in more than one year (Note 5) 2,060,000 125,250,000 127,310,000 Total Liabilities $2,431,123 $130,111.,113 $132,542,236 NET ASSETS: Restricted for - Debt service $ 497,217 $ 10,857,615 $ 11,354,832 Total Net Assets $ 497,217 $ 10,857,615 $ 11,354,832 See accompanying notes. 9 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2003 Eazpens es Functions/Programs Primary Government: Governmental Activities Education $ 21,391 Interest on debt 159,629 Total Governmental Activities $ 181,020 Business-type Activities - County hospital $1,257,096 Interest on debt 7,097,061 Total Business-type Activities $8,354,1157 Total Primary Government $8,535,177 See accompanying notes. io ........................................................................................................................................................................ ....................... ....................... .. .......................... ............................. ........I....... Net (Expense) Revenue Program Revenues and Changes in Net Assets Charges Operating Capital For Grants and Grants and Governmental Business-Type Services Contributions Contributions Activities Activities Total $ 159,481 $ 136,090 $ - $ 139,090 <159,629> - <159,629> $ 159,481 $ m $ - $ <21,539> $ - $ <21,539> $7,097,061 $ 5,639,965 $ 5,639,965 <7,097,061> <7,097,061> $7,097,061 $ - $ - $ - $<1,257,096> $<1,257,096> $7,256,542 $ - $ - $ <21,539> $<1,257,096> $<1,278,635> GENERAL REVENUES Investment earnings $ 71,216 $ 613,871 $ 685,087 TRANSFERS <3,601,190> - <3,601,190> Total general revenues and transfers $<3,529,974> $ 613,871 $<2,916,103> Changes in net assets $<3,551,513> $ <643,225> $<4,194,738> NET ASSETS, BEGINNING OF YEAR 4,046,730 11,500,840 15,549,570 NET ASSSETS, END OF YEAR $ 497,217 $10,857,615 $11,354,832 li CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2003 Facility Education Lease Total ASSETS: Cassa and investments $ 497,217 $ - $ 497,21.7 Interest receivable 31,123 - 31.,123 Lease payments receivable 2,400,000 - 2,400,000 Total Assets $2,925,340 $ - $2,925,340 LIABILITIES AND FUND BALANCES: Liabilities - Interest payable $ 31,123 $ - $ 31,123 Short-term notes payable 340,000 - 340,000 Deferred revenue 2,060,000 - 2,060,000 Total Liabilities $2,431,123 $ - $2,431,123 Fund Balances Debt service $ 497,217 $ - $ 497,217 Total Fund Balances $ 497,217 $ - $ 497,217 Total Liabilities and Fund Balance $2,925,340 $ - $2,925,340 See accompanying notes. 12 _..................__........................................................ _.......................................................................................................................................................................1111.. ....... ......... ......... ......... ......... ............ _. . ......... ......... ......... .................................................. ......... .........1.11.....1 . CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEbMNNT OF NET ASSETS JUNE 30, 2003 Fund balances - total governmental funds (Page 12) $ 497,217 Amounts reported for governmental activities in the statement of net assets are different because - Lease payment receivable due in more than one year are not available to pay current- period expenditures and, therefore, are deferred in the governmental funds 2,060,000 Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental. funds - Certificate of participation e2,060,000> Net assets of governmental activities (Page 11) $ 497,217 See accompanying notes. 13 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2003 Facility Education Lease Total Revenues: Interest income $ 5,466 $ 65,750 $ 71,216 Lease payments 1.59,481 - 159,481 Total Revenues $164,947 $ 65,750 $ 230,697 Expenditures: Current - Administration fee $ - $ 148 $ 1.48 Payments to Contra Costa County Hoard of Education 21,391 - 21,39- Debt service - Interest 159,481. - 159,48: Total Expenditures $180,872 $ 1.48 S 181,020 Excess (Deficiency" of Revenues Over (Under) Expenditures $<15,925> $ 65,602 $ 49,677 Other Financing Sources (Uses) : Transfers out to escrow agent for defeasance of 1992 Certificates of Participation $<3,601,190> $<3,601,190> Transfers in - internal. activities 1,727 1.,727 Transfers out - internal. activities <1,727> <1,727> Total Other Financing Sources (Uses) $ - $<3,601,190> $<3,601,190> Net Change in Fund Balances $<15,925> $<3,535,588> $<3,551,513> Fund Balances at Beginning of Year $513,142 $ 3,535,588 $ 4,048,730 Fund Balances at End of Year $497,217 $ - $ 497,217 See accompanying notes. 14 .................................................................................................. _...........................................................................................................................................................__.......... _ ........ _ ................... ...... . CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2003 Net change in fund balances - total governmental funds (Page 14) $e3,551,513> Amounts reported for governmental activities in the statement of activities are different because - Revenues that were deferred in the governmental funds because there were unavailable are reported in as current revenue. The amount represents the change in deferred revenue from the prior year <557> Long-term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets - This amount represents the proceeds from certificates of participation e340,000> This amount represents certificates of participation repayments 340,000 Interest expense on Long-term debt is reported in the Component-wide Statement of Activities and Changes in Net Assets, but they do not require the use of current financial resources. The following amount represents the change in accrued interest expense from the prior year 557 Change in net assets of governmental activities (Page 10) $<3,551,513> See accompanying notes. 3s CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30 2003 Enterprise Fund County Hospital Assets: Current assets - Cash and investments $ 10,857,615 Accrued interest receivable 1.,131,113 Lease payment receivable 3,330,000 Total Current Assets $ 15,718,728 Noncurrent assets - Lease payment receivable $125,250,000 Total Noncurrent Assets $125,250,000 Total Assets $140,968,728 Liabilities: Current liabilities - Interest payable $ 7.,133.,1.13 Current portion of long-term liabilities 3,730,000 Total Current Liabilities $ 4,861,113 Noncurrent portion of long-term liabilities - Certificates of participation $1.25,250,000 Total Noncurrent Liabilities $125,250,000 Total Liabilities $130,111,113 Net Assets: Reserved for debt service $ 10,857,615 Total Net Assets $ 10,857,615 See accompanying notes. 16 ............................................................................................... .............................................................................................................................................................................................................. ...... ......... ......... ......... . ........ ........ _ .................. _..... _...._. ..._......................................................... CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2003 Enterprise Fund County, HosEita.� Operating Revenues: Lease payments $ 7,097,061 Total Operating Revenues $ 7,097,061 Operating Expenses: Administration fee $ 4,726 Total Operating Expenses $ 4,726 Operating income $ 7,092,335 Nonoperating Revenues (Expenses) : Capital outlay $ <20,417> Interest expense <7,097,061> Investment income 613,871 Payments to Contra Costa County <1,231,953> Total Nonoperating Revenues (Expenses) $<7,735,560> Change in Net Assets $ <643,225> Total Net Assets at Beginning of the Year $11,500,840 Tota. Net Assets at the End of Year $10,857,615 See accompanying notes. 17 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2003 Enter2rise Fund County Hospital Cash Flows from Operating Activities: Cash received from lease payments $ 10,666,144 Cash payments for administration fee <28,104> Net Cash Provided by Operating Activities $ 10,638,040 Cash Flows from Noncapital Financing Activities: Payments to Contra Costa County $ <1,231,953> Net Cash Used for Noncapital Financing Activities $ <1,231,953> Cash Flows from Capital and Related Financing Activities: Cash paid for capital outlay $ <20,417> Interest paid <7,122,958> Principal paid on bonds and certificates <3,570,000> Net Cash Used for Capital and Related Financing Activities $<10,713,375> Cash Flows from Investing Activities: Interest received on investments $ 640,685 Net Cash Provided by Investing Activities $ 640,685 Net (decrease) in Cash and Cash Equivalents $ <666,603> Cash and Cash Equivalents at the Beginning of Year 11,524,218 Cash and Cash Equivalents at the End of Year $ 10,857,615 Reconciliation of Operating Loss to Net Cash Used for Operating Activities: Operating income $ 7,092,335 Adjustments to Reconcile Operating Loss to net Cash Provided by (Used for) Operating Activities: Changes in operating assets and liabilities - Decrease in - Lease payment receivable 3,570,000 (Decrease) in - Accounts payable and accrued liabilities <23,378> Deferred revenue <917> Net Cash Provided by Operating Activities $ 1.0,638,040 See accompanying notes. 18 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 NOTE 1 - Description of Reporting Entity: The Contra Costa County Public Facilities Corporation (the "Corporation") was incorporated November 12, 1981 as a non-profit, public benefit corporation formed to provide financing for the acquisition, construction, improvement and remodeling of public buildings and facilities for Contra Costa County (the "County") , California. The Corporation is exempt from Federal and State taxation. The Corporation is a blended component unit of the County of Contra Costa. Despite the Corporation being legally separate from the County, it is so intertwined with the County that it is, in substance, the same as the County. Due to the fact that the Corporation's governing body is substantially the same as the governing body of Contra Costa County and the fact that the Corporation provides services entirely and exclusively to the County of Contra Costa, even though it does not provide service directly to it, the Corporation's financial statements are included in the County financial statements as a whole using the blending method. U.S. Bans Trust, NA and BNY Western Trust Company, NA serve as trustees for the various debt issues which have not been subject to an in substance defeasance. The Trustee receives and disburses all monies and holds investments and titles to all properties. Corporate properties and related debt issues at June 30, 2009 are as follows: Property Board of Education $ 4,950,000 1992 Certificates of Central Office Building, Participation Pleasant Hill Merrithew Memorial Hospital $145,340,000 1997 Refunding Replacement Project, Certificates of Martinez Participation i9 CONTRA COSTF. COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 DOTE 2 - Accounting Policies: (A) Basis of presentation - Fund Accounting The Corporation is treated as a debt service fund by Contra Costa County. Debt service funds are used to account for the accumulation of resources for, and the repayment of, long-term, debt principal and interest. To ensure compliance with the provisions of the trust agreements, the accounts are maintained on a "Fund Accounting" basis. Revenues, expenditures, and other sources and uses of funds are classified, for accounting and reporting purposes, into funds by activities or objectives. Separate accounts are kept for each debt issue and all financial transactions are recorded and reported by the funds which constitute the issue. The Contra Costa County Public Facilities Corporation adopted the provisions of Government Accounting Standards Board Statement No. 34, Basic .Financial Statements _ and Management's Discussion and Analysis For State and Focal Governments; and Statement No. 37, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments: Omnibus, as of June 30, 2002. in June 2001, the GASB issued Statement No. 38, Certain Financial Statement Note Disclosures. This statement modifies, adds and deletes various note disclosure requirements. Those requirements address revenue recognition policies, actions taken in response to legal violations, debt service requirements, variable--rate debt, receivable and payable balances, interfund transfers and balances, and short-term debt. The Corporation implemented the provisions of this statement, and the accompanying notes to the basic financial statements are presented in accordance with its requirements. (B) Measurement Focus, (iasis of Accounting Financial Statement Presentation Component-wide financial statements: The component-wide financial statements focus on governmental and business-type activities. The financial statements distinguish between the governmental and business-type activities of the primary government. The statement of net assets and the statement of activities are prepared using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred regardless of the timing of the related cash flows. 20 CONTRA COSTA COUNTY" PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 NOTE 2 _ Accounting Policies (Continued) : The statement of net assets presents the financial position of the primary government (governmental and business-type activities) . The statement is presented under the `°net assets" format of assets minus liabilities equal net assets. The statement of activities and changes in net assets reports the results of the Corporation's operations for governmental and business-type activities. Fund financial statements: Government fund financial statements include the Balance Sheet and the Statement of Revenues, Expenditures, and Changes in Fund Balance for the major governmental funds. The funds which are considered governmental funds are the 1992 Certificates of Participation for the Board of Education Central Office Building and the 1992 Certificates of Participation for the Consolidated Capital Facilities Project. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Corporation considers revenues to be available if they are collected within 50 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. Proprietary fund financial statements include the Statement of Net Assets, the Statement of Revenues, Expenses and Changes in Net Assets, and the Statement of Cash Flows. Proprietary funds focus upon the determination of operating income, changes in net assets, financial position, and cash flows. These funds adhere to generally accepted accounting principles applicable to those similar to businesses in the private sector. Interest income associated with the current fiscal period is considered to be susceptible to accrual and so has been recognized as revenue of the current fiscal period. All other revenue items are considered to be measurable and available Only when cash is received by the Corporation. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the component- wide and fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. 21 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 NOTE 2 - Accounting Policies (Continued) : (C) Description of funds The following is a description of the funds used by the Corporation - Administrative Fund - The Administrative Fund is used to pay the administrative costs of the Corporation with respect to the project. Sources of funds are transferred amounts from issuance proceeds, interest earnings transferred from the Revenue Fund, and payments from Contra Costa County. Principal 'Fund - The Principal Fund makes security principal payments. Funds are obtained by transfers from the Revenue Fund which collects the lease payments. Interest Fund The Interest Fund makes security interest payments. Funds are obtained by transfers from the Revenue Fund which collects the lease payments. Reserve Fund The Reserve Fund consists of two sub-funds. The Insurance Reserve Fund and the Certificate Reserve Fund. The sub-funds receive their resources from the proceeds of debt issue. The Insurance Reserve Fund pays for project repairs or replacements not covered by insurance. The Certificate Reserve fund makes certificate principal and interest payments. Acquisition Fund - The Acquisition Fund is a construction fund whose principal source is an amount allocated from the proceeds of debt issued. This fund pays for project construction costs. Revenue Fund - The Revenue Fund consists of two sub-funds. The Lease Fund receives a portion of proceeds from debt issuance and allocates amounts to the Principal and Interest Fund for debt service requirements before the relevant capital project is due to be completed. The Base Rental Fund collects lessee lease payments and makes transfers to the Principal and Interest Funds to meet debt service requirements after project completion. Issuance Cost Fund - The Issuance Cost Fund is used to pay for costs associated with the issuance and defeasance of debt. Funds are allocated from debt proceeds for this purpose. (D) Total (Memo) Columns - These columns on the accompanying balance sheets and statements of revenues, expenditures, and changes in fund balances are presented as additional analytical data only. They do not represent consolidated financial information. (E) Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principals 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 financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 22 ........................................................................................................................................................................................................................................................................................................................... CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION MOTES TO FINANCIAL, STATEMENTS JUNE 30, 2003 NOTE 3 - Cash and Investments: Statutes and trust agreements authorize the Corporation to invest in obligations of the United States Treasury, federal agencies, municipalities, commercial pager rated A-1 by Standard & Poor's Corporation or P-1 by Mdoody's Commercial Paper Record, time certificates of deposit, negotiable certificates of deposit, bankers' acceptances, repurchase agreements, and other statutory investment trusts and funds. At June 30, 2003, the Corporation held the following investments: Category Carrying Fair 1 2 3 Amount Value Commercial paper $1.0,704,555 $ - $ - $10,704,555 $10,704,555 Uncategorized Investments: Joint Power - Asset Management Program Funds 1,556 1.,556 Investment in Permitted Money Fund 648,621 645,621 $11,354,832 $11.,354,832 Category 1 includes investments that are insured or registered or for which the securities are held by the Corporation or it's agent in the Corporation's name. Category 2 includes uninsured and unregistered investments where the securities are held by the counterparty's trust department or agent in the Corporation's name or in agent's nominee name with subsidiary records listing the Corporation as the legal owner. Category 3 includes uninsured and unregistered investments in which securities are held by the counterparty or by its trust department or agent but not in the Corporation's name. Investments not evidenced by securities that exist in physical or book form cannot be categorized. The Corporation has no Category 2 or 3 investments at ,lune 30, 2003. Investment transactions are recorded on the trade date. Investments in non-participating interest-earning investment contracts (certificates of deposits and guaranteed investment contracts) are stated at cost, and all other investments are at fair value. Fair value is defined as the amount that the Corporation could reasonably expect to receive for an investment in a current sale between a willing buyer and seller and is generally measured by craoted market prices. When an increase in market value is due to temporary market fluctuations and is considered immaterial, the investment is stated at cost. All securities are intended to be held until maturity. The commercial paper was held until maturity on August 1, 2003. 23 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 NOTE 4 - Lease Payments Receivable and Deferred Revenues: The Corporation leases its buildings currently in use to Contra Costa County under sales-type lease agreements. Lease terms are for 6 to 30 years and generally coincide with the maturity date of the related financing, in general, lease payments to the Corporation equal debt service requirements and are payable preceding the month in which principal and/or interest payments are due. During the fiscal year ended June 30, 2003, the Corporation received $11,146,542 in lease payments from the County. Minimum lease payments are receivable in fiscal years ending June 30, as follows - 2004 $ 11,128,335 2005 11,125,843 2006 11,116,094 2007 11,097,139 2008 11,081,879 2009-2013 53,488,621. 2014-2018 52,798,865 2019+ 52,469,375 $214,306,151. Less amount representing interest <82,926,1.51> Principal outstanding $131,380,000 Less current portion c4,070,000> Noncurrent portion $127,310,000 24 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 NOTE 5 - Long-Terse Debt: Following is a summary of changes in long-term debt for the year ended June 30, 2003 - Balance - July 1, 2002 $161,140,000 Principal payments <3,890,000> Principal payment on defeased 1992 Certificate of Participation <25,870,000> Total debt outstanding at June 30, 2003 $131,380,000 Less current portion <4,070,000> Long-term debt outstanding at June 30, 2003 $1.27,310,000 Following is a schedule of repayment requirements for long-term obligations outstanding at June 30, 2003 Fiscal Year Ended June 30 2004 $ 11,128,335 2005 11,125,843 2006 11,116,094 2007 11,097,139 2008 11,081,€#79 2009-2013 53,488,621 2014-2018 52,798,865 2019+ 52,469,375 $214,306,151 Less amount representing interest <82,926,151> Principal outstanding $131,380,000 Less current portion <4,070,000> Noncurrent portion $127,310,000 25 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 MOTE 5 -- Long-Terser Debt (Continued.) Individual certificates of participation payable at June 30, 2003 are as follows: Fiscal Merrithew Hospital Ended Replacement Project Board of Education June 30 Principal Interest Principal Interest 2004 $ 3,730,000 $ 6,918,824 $ 340,000 $139,511. 2005 3,925,000 6,717,880 365,000 1.17,963 2006 4,130,000 6,506,436 385,000 94,658 2007 4,350,000 6,267,524 410,000 69,615 2008 4,610,000 5,998,724 430,000 43,155 2009-2013 27,100,000 25,903,816 470,000 14,805 2014-2018 35,245,000 17,553,866 - - 2019+ 45,890,000 6,579,375 - - $128,980,000 $82,446,445 $2,400,000 $479,707 Original issue amount $145,340,000 $4,950,000 Remaining installment amounts (in $ 3,730 $ 340 thousands) $ 10,185 $ 470 Final payment 2022 2008 Remaining interest rates M 5.1-6.0 6.1-6.3 26 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 MOTE 6 - Fund Balances: All Fund balances are designated and/or restricted by the trust agreements which control the uses of the proceeds of the various security issues. NOTE 7 Payments To/From Contra Costa County and the Board of Education: Pursuant to the trust agreements between the Corporation, the County and the Board of Education, any excess revenue, generated either by the sale of certificates of participation or investments, is required to be paid to the County or the Board of Education after specified corporate internal requirements are met. Also, as required by the trust agreements, the County and the Board will pay to the Corporation additional rents to cover certain expenses incurred by the Corporation. NOTE 8 - Magee Park: In May of 1987, Contra Costa County and the Town of Danville each purchased an undivided one-half interest in Magee Park under a joint powers agreement. Upon the close of escrow, title to the property was passed to the Corporation contingent on its ability to obtain financing to purchase the property. The property will be reflected in the financial statements of the Corporation when financing is obtained. NOTE 9 - Risk Management: As provided in the various lease agreements, the County purchases fire, extended coverage, flood, earthquake, and rental loss insurance. Earthquake coverage is not required for certain leased properties. The County has a $600 million limit of liability per occurrence and $200 million in the aggregate annually for the peril of flood. The County also shares a $90 million limit of liability in the aggregate annually regarding earthquakes. The basic deductible under the property insurance program described above is $10,000 per occurrence, a $100,000 deductible per occurrence applies to losses caused by flood. With respect to peril of earthquake, a minimum 5% per " unit" deductible is applicable. The County is self-insured up to $1 million per occurrence for public liability claims and maintains $25 million of excess protection with commercial insurance companies. 27 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 NOTE 10 - Rebate Liability: Interest on obligations of the Corporation is excludable from the gross income of the owners. Internal Revenue Code Section 148 was enacted to minimize the arbitrage benefits from investing gross proceeds of tax- exempt obligations in higher yielding investments and to remove arbitrage incentives to issue more tax-exempt obligations, to issue tax-exempt obligations earlier, or to leave tax-exempt obligations outstanding longer than is necessary to accomplish the governmental purpose for which the obligations were issued. To accomplish these purposes, Section 148 restricts the direct and indirect investment of tax-exempt obligation proceeds in higher yielding investments and requires that certain earnings on higher yielding investments be rebated to the United States. The Corporation completed interim arbitrage rebate analysis on all issues and had no rebate liability as of June 30, 1999. NOTE 11 - Advance Refunding of Debt: In prior years, the Corporation has defeased certificates of participation by placing a portion of the proceeds of new debt issuance into irrevocable trust to provide for all future debt service payments on the certificates. Accordingly, the trust account assets and the liability for the defeased debt are not included in the financial statements of the Corporation. On June 30, 2003, $26,499,012 in outstanding certificates of participation are considered defeased. NOTE - 12 - Defeasance of Debt: In July, 2002, Contra Costa County Public Finance Authority (a separate entity from the Corporation) issued $25,440,000 in lease revenue bonds with interest rates ranging from 2.00 to 4.60 percent, to defease the 1992 Consolidated Capital Facilities Project Certificate of Participation with a remaining principal balance of $25,870,000. The purpose of the defeasance was to lower debt service costs for the County. A total of $26,996,063 was used to purchase securities which were held in irrevocable trust with an escrow agent to provide for all future debt service payments on the 1992 Certificates. The Public Finance Authority deposited $25,309,221 and the Corporation deposited $3,601,190. Of that amount, $3,532,027 was used in the defeasance and $69,163 was excess funds due to the County. As a result, the 1992 Certificates are considered defeased and the liability for those Certificates has been removed from the financial statements of the Corporation. 28 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION NOTES TO FINANCIAL STATEMENTS JUNE 30, 2003 NOTE 12 - Defeasance of Debt (Continued) : in consideration for the Public Finance Authority's escrow deposit, the Corporation, the BNY Western Trust Company, NA (trustee of the 1992 Certificates of Participation) and the County signed a Termination Agreement on September 5, 2002. Pursuant to the agreement, the Corporation and prior trustee unconditionally granted, transferred and assigned to the County without recourse all of their right, title and interest in and to the Consolidated Capital Facilities Project and the prior facility lease, excepting only the right to receive base rental to be paid from the escrow fund. The defeased debt was paid off in full on December 2, 2002. The refunding of the 1992 Certificates of Participation resulted in an economic gain of $1,152,183 (difference between the present values of the debt service on the old and new debt) . 29 30 ............................. ................................................................................................................................................................................................ ................................................................... ......................... ...............- ........................ ......................... SUPPLEMENTAL INFORMATION CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION BALANCE SHEET/STATEMENT OF NET ASSETS 1992 CERTIFICATES OF PARTICIPATION (BOARD OF EDUCATION CENTRAL. OFFICE BUILDING) JUNE 30, 2003 Administrative Principal T-nterest Reserve Fund Fund Fund Fund ASSETS Current Assets - Investments $6,609 $ 1 $490,583 Accrued interest receivable - - - Lease payments receivable - - - Total current assets $6,609 $ 1 $ - $490,583 Noncurrent Assets - Lease payments receivable $ - $ - $ _ $ Total assets 561609 $ 1 $ - $490,553 LIABILITIES AND NET ASSETS Current Liabilities - Deferred revenue Current portion of long- term debt Interest payable Total current liabilities Noncurrent Liabilities Deferred revenue Noncurrent portion of long-terns debt Total noncurrent liabilities $ - $ Total liabilities $ - $ - $ - $ Fund 'Balances/Net Assets - Restricted for debt service $6,609 $ 1 $ - $490,583 Total liabilities and fund balances/net assets $6,609 $ 1 $ - $490,587 32 _...-.._...._...................................................................................... ...._....................._......._..........._,........._,........................................................................................................................................................__............ ....._.. ......... ............ ... . ...... ... ... ...... .................._................. _... ............ ...................................................... ......_...... __ Acquisition Revenue Total Statement of Fund Fund (Memo) Adjustments Net Assets $ 20 $ 497,217 $ 497,217 31,123 31,123 31,123 340,000 340,000 340,000 -- $ 371,143 $ 868,340 $ - $ 868,340 $ - $2,060,000 $2,060,000 $ - $2,060,000 $ - $2,431,143 $2,928,340 $ - $2,928,340 $ 340,000 $ 340,000 $ <340,000> $ - - - 340,000 340,000 31,123 31,123 - 31,123 $ - $ 371,123 $ 371,123 $ - $ 371123 $2,060,000 $2,060,000 $<2,060,000> $ - 2,060,000 21060,000 $ - $2,060,000 $2,060,000 $ - $2,060,000 $ - $2,431,123 $2,431,123 $ - $2,431,123 $ - $ 20 $ 497,217 $ - $ 497,217 $ - $2,431,143 $2,928,340 $ - $2,928,340 33 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION BALANCE SHEET/STATEMENT OF NET ASSETS 1997 REFUNDING CERTIFICATES OF PARTICIPATION (MERRITHEW MEMORIAL ��yy��HOSPITAL ��I�REPLACEMENT PROTECT) JUNE 30, 2003 Administrative Principal Interest Reserve Fund Fund Fund Fund ASSETS Current Assets - Investments $1,555 $10,555,192 Accrued interest receivable - - Lease payments receivable - s Total current assets $1,555 $� $� $10,555,192 Noncurrent Assets Lease payments receivable $ $® $� $ Total assets $1,555 $- $- $1.0,855,1.92 LIABILITIES ANIS NET ASSETS Current liabilities - Deferred revenue Current portion of long-term debt Interest payable Total current liabilities Noncurrent Liabilities - Deferred revenue Noncurrent portion of long-term debt Total noncurrent liabilities Total liabilities Fund Balances/Net Assets - Restricted for debt service $1,555 $- $m $10,855,192 Total liabilities and fund balances/net assets $1,555 $- $- $10,855,192 34 Acquisition revenue Issuance Total Statemet of Fund Fund Cost Fund (Memo) Adjustments Net .Assets 757 $111 $ 10,857,615 $ 10,857,615 1,131,113 - 1,131,113 1,131,113 3,730,000 - 3,730,000 3,730,000 S- $ 4,861,870 $111. $ 15,718,728 $ - $ 15,718,728 $- $125,250,000 $ - $125,250,000 $ - $125,250,000 $m $130,111,870 $111 $1.40,968,728 $ - $140,968,728 $ 3,730,000 $ 3,730,000 $ <3,730,000> $ - - - 3,730,000 3,730,000 1,1.31.,1.1.3 1,131,113 - 1,131,113 $- $ 4,861,113 $ - $ 4,861,113 $ $ 4,861,113 $125,250,000 $3.25,250,000 $<125,250,000> $ - 125,250,000 125,250,000 $- $125,250,000 $ - $1.25,250,000 $ - $125,250,000 $- $130,111,113 $ - $130,111,113 $ - $130,1.11,113 $� $ 757 $111. $ 10,857,615 $ - $ 10,857,615 $- $130,1.11.,870 $111. $140,968,728 $ - $140,968,728 35 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES/STATEMENT OF ACTIVITIES 1992 CERTIFICATES OF PARTICIPATION (BOARD OF EDUCATION CENTRAL OFFICE BUILDING) FOR THE YEAR ENDED JUNE 30, 2003 Administrative Principal Interest Reserve Fund Fund Fund. Fund Revenues - Interest income $ 67 $ 4 $ 5,089 Lease payments - - - Total revenues $ 67 $ 4 $ $ 51089 Expenditures - Current: Payments to Contra Costa County Board of Education $ - $ - $ 21.,391 Debt Service: Principal 320,000 m _ Interest - 1.59,481 - Total expenditures $ -- $ 320,000 $ 159,481 $ 21.,391 Excess (deficiency) of revenues over expenditures S 67 $<319,996> $<159,481> $<16,302> Other financing sources (uses) - Transfers in - internal activities $ 319,223 $ 159,481 $ 1,063 Transfers out - internal activities - - - Total other financing sources (uses) $ - $ 31.9,223 $ 159,481 $ 1,063 Excess (deficiency) of revenues and transfers in over expenditures and transfers out $ 67 $ <773> $<1.5,239> Fund balances/net assets - July 1, 2002 6,542 774 505,826 Fund balances/net assets a June 30, 2003 $6,609 $ 1 $ - $490,587 36 __ _._.... .-_........ .. ......... ......... .......... Statement Acquisition Revenue Total, of Fund Fund (Memo) Adjustments Activities $ 306 $ 5,466 $ - $ 5,466 479,481 479,481. <320,000> 159,481 $ - $ 479,787 $484,947 $<320,000> $164,947 $ 21,391 $ - $ 21,391 320,000 <320,000> - 159,481 - 159,481 $ - $ - $500,872 $<320,000> $180,872 $ - $ 479,787 $<15,925> $ - $<15,925> $ - $479,767 $<479,767> <479,767> <479,767> 479,767 $� $<479,767> $ - $ - $ - $ 20 $<15,925> $<15,925> 513,142 513,1.42 $ - $ 20 $497,217 $ - $497,217 37 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUNIS BALANCES/STATEMENT OF ACTIVITIES 1992 CERTIFICATES OF PARTICIPATION (CONSOLIDATED CAPITAL FACILITIES PROJECT) FOR TETE YEAR ENDED JUNE 30, 2003 Administrative Principal Interest Reserve Fund Fund Fund Fuad Revenues - Interest income $ 2 $ - $ - $ 64,337 Expenditures - Current. Administration fee $ - $ - $ - $ 2 Excess (deficiency) of revenues over expenditures $ 2 $ - $ - $ 64,335 other financing sources (uses) - Transfers out to escrow agent for defeasance of 1992 Certificates of Participation $ - $<3,330,356> Transfers in - internam activities - 3.,727 Transfers out - Internal. activities <644> - Total other financing sources (uses) $<644> $ - $ - $<3,336,629> Excess (deficiency) of revenues transfers in over expenditures and transfers out $<642> $<3,272,294> Fund balances/net assets - July 1, 2002 642 3,272,294 Fund balances/net assets - June 30, 2003 $ - $ 38 _.................................................................................................................................................................................................................................................................. Acquistion Revenue Total Statement Fund Fund (memo) Adjustments of Activities $ 789 $ 622 $ 65,750 $ - $ 65,750 $ 15 $ 131 $ 148 $ - $ 148 $ 774 $ 491 $ 65,602 $ - $ 65,602 $<260,282> $<2,552> $<3,601,190> $<3,601,190> m - 1,727 1,727 <1,083> <1.,727> <1,727> $<261,365> $<2,552> $<3,601,190> $ - $<3,601,190> $<260,591> $<2,061> $<3,535,588> $<3,535,588> 260,591 2,061 3,535,588 3,535,588 39 CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES/STATEMENT OF ACTIVITIES 1997 REFUNDING CERTIFICATES OF PARTICIPATION (MERRITHEW MEMORIAL HOSPITAL REPLACEMENT PROJECT) FOR THE YEAR ENDED JUNE 30, 2003 Administrative Principal Interest Fund Fund Fund. Revenues - Interest income $ 23 Lease payment a Total, revenues $ 23 $ m S o Expenditures - Current; Administration fees $ - $ - Payments to Contra Costa County - - Debt service: Principal. 3,570,000 - Interest - 7,097,051 Capital outlay - - Total expenditures $ - $ 3,570,000 $ 7,097,051 Excess (deficiency) of revenues over expenditures $ 23 $e3,570,000> $c7,097,061> Other financing sources (uses) - Transfers in - internal activities $ - $ 3,570,000 $ 7,097,061 Transfers out - internal activities <13> o t9> Total other financing sources (uses) $ <13> $ 3,570,000 $ 7,097,052 Excess (deficiency) of revenues and transfers in over expenditures and transfers out $ 10 $ <9> Fund balances/net assets - July 1, 2002 1,545 9 Fund balances/net assets - June 30, 2003 $1,555 40 Statement Reserve Acquisition Revenue Issuance Total of Fund Fund Fund Cost Fund (Memo) Adjustments Activities $ 607,071 288 $ 6,489 $ 613,871 $ - $ 613,871. - - 10,667,061 10,667,061 <3,570,000> 7,097,061 $ 607,071 $ 288 $ 20,673,550 $ - $11,280,932 $ <3,570,000> $ 7,710,932 $ 3,125 $ - $ 1,601 $ 4,726 $ - $ 4,726 - - 1,231,953 1,231,953 - 1„231,953 - 3,570,000 <3,570,000> - - - 7,097,061 - 7,097,061 - 20,417 - 20,417 - 20,417 $ 3,125 $ 20,417 $ 1,233,554 $ - $1.1,924,157 $ <3,570,000> $ 8,354,157 $ 603,946 $ <20,129> $ 9,439,996 $ - $ <643,225> $ _ - $ <643,225> $ 94,129 $ - $ 1,218,667 $11,979,857 $<11,979,857> <1,207,833> <104,941> <10,667,061> <11,979,857> 11.,979,857 $<1,113,704> $ <104,941> $ <9,448,394> $ - $ - $ - $ - $ <509,758> $ <125,070> $ <8,398> $ - $ <643,225> $ <643,225> 11,364,950 125,070 91155 112 21,500,840 11,500,840 $10,855,192 $ - $ 757 $121 $10,857,615 $ - $10,857,615 41