HomeMy WebLinkAboutMINUTES - 04112006 - C.70 C. o
TO: BOARD OF SUPERVISORS ? �_ Contra
FROM: JOHN CULLEN, County Administrator ;;I; Y s Costa
DATE: APRIL 4, 2006
co -: County ux�;
SUBJECT: SINGLE AUDIT REPORTS FOR FISCAL YEAR ENDED JUNE 30, 2005
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SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
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RECEIVE single audit reports prepared by Caporicci & Larson, CPA, for the fiscal year ended
June 30, 2005 and REFER them to the Board's Finance Committee and the County
Administrator for review and follow-up.
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BACKGROUND:
Under federal law, programs administered by Contra Costa County that are fully or partially
funded with federal fundsare subject to an annual review called the single audit. 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
audit and has submitted it to the County.
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CONTINUED ON ATTACHMENT: L-YE-S SIGNATURE: _
`RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEN AT ON OF BOARD COMMITTEE
_4,-APPROVE OTHER j
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SIGNATURE(S): T-
ACTION OF BOA D N[!!- // t� /� O4� APPROVE AS RECOMMENDED X O R
�� Vi I
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VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
UNANIMOUS(ABSENT ' ) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
AYES: NOES: SHOWN.
ABSENT: ABSTAIN:
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ATTESTED: APRIL 11,2006
CONTACT: JULIE ENEA(925)335-1077 JOHN CULLEN,CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
CC: COUNTY ADMINISTRATOR
AUDITOR-CONTROLLER
LISA DRISCOLL,STAFF,FINANCE COMMITTEE
BY DEPUTY
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2005 Single Audit Reports April 4, 2006
Page 2
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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.
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County
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of
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Contra Costa
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1 Martinez, California
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1 Single Audit Reports
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1 For the year ended June 30, 2005
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C&L
1 Caporicci&Larson
Certified Public Accountants
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County of Contra Costa ,
' Table of Contents
� Paye
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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
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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
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Schedule of Expenditures of Federal Awards..................................................................................................5
Notes to the Schedule of Expenditures of Federal Awards.........................................................................11
Schedule of Findings and Questioned Costs..................................................................................................15
Summary Schedules of Prior Audit Findinigs................................................................................................20
Supplemental Schedules: i
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Supplemental Schedule of Expenditures for Federal and State Awards
Prepared by the Contra Costa Employment and Human Services Department.........................22
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Supplemental Schedules of Revenues and Expenditures
Prepared by the Contra Costa Community Services Department.................................................24
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C&L
iCaporicci&Larson
Certified Public Accountants
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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 Supervisors �
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County of Contra Costa,California
' Martinez,California
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We have audited the basic financial statements of the County of Contra Costa,California (County),as of and
' for the year ended June 30, 2005, and have issued our report thereon dated November 30, 2005. 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.
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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 provisions 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
t 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 Governinent Auditing
Standards.
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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 1 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
tinternal 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 t nancial 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 that1we consider to be material weaknesses. However, we noted other
matters involving the internal control over financial reporting, which we have reported to management of
the County in a separate letter dated November 30,2005.
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.
� e." �
Oakland,California
November 30,2005 I
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Toll Free Ph:(877)862-2200 � Toll Free Fax:(866)436r0927
Oakland Orange County Sacramento San Diego
180 Grand Ave.,Suite 1365 3184-D Airway Avenue 777 Campus Commons Rd.,Suite 200 4858 Mercury,Suite 106
Oakland,California 94612 Costa Mesa,California 92626 Sacramento,California 95825 San Diego,California 92111
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C&L
Caporicci&Larson
Certified PublicAcconntants
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
rj We have audited the compliance of the County of Contra Costa, California (County), with the types of
A 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, 2005. 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 $95,892,521, which are not
included in the accompanying schedule of expenditures of federal awards during the year ended June
30, 2005. Our audit, described below,I did 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-133).
We conducted our audit of compliance lin accordance with generally accepted auditing standards in the
United States; the standards applicablei to financial audits contained in Government Auditing Standards,
1 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 sof 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.
1 In our opinion, the County complied, u1 all material respects, with the requirements referred to above
that are applicable to each of its major federal programs for the year ended June 30, 2005. 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 items 05-1 to 05-5.
Toll Free Ph:(877)862-2200 Toll Free Fax:(866)436-0927
Oakland Orange County Sacramento San Diego
180 Grand Ave.,Suite 1365 3184-D Ainvav Avenue 777 Campus Commons Rd.,Suite 200 4858 Mercurv,Suite 106
Oakland,California 94612 Costa Mesa,California 92626 Sacramento,California 95825 San Diego,California 92111
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 determine 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 several matters involving the internal control over compliance and its operation that we
consider to be reportable conditions. Reportable 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
conditions are described in the accompanying schedule of findings and questioned costs as items 05-1 to . ,
05-5.
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 allmatters in the internal control that
might be reportable conditions that are also considered to be material weaknesses. However, we believe
that the reportable conditions described above are not material weaknesses.
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 t
and for the year ended June 30, 2005, and have issued our report thereon dated November 30, 2005. 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 i.
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 30, 2005
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County of Contra Costa
Single Audit Reports
rSchedule of Expenditures of Federal Awards
For the year ended June 30,2005 ✓
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 AGRICULTURE
Pass-Through State Department of Forestry:
Volunteer Fire Assistance Program 10.000 $ 2,779 $
Pass-Through State Department of Education:
School Breakfast and Lunch Quvenile Hall) 10.550 303,857
Pass-Through State Department of Social Services:
Food Stamp Cluster: -
State Administrative Matching Grants for Food Stamp 10.561* 7,847,423
Sub-total Food Stamp Cluster 7,847,423 -
Pass-Through State Department of Agriculture:
Special Supplemental Nutrition Program for
Women,Infants and Children(WIC) 10.557 2,466,705 -
' Pass-Through State Department of Aging:
Senior Farmer's Market 10.576 11,778
Sub-total Pass-Through Programs 10,632,542 -
Total U.S.Department of Agriculture i. $ 10,632,542 $ -
U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Direct Programs:
Community Development Block Grants/Entitlement Grants 14.218* $ 8,036,321 $ 5,087,365
Emergency Shelter Grants Program 14.231 156,213 55,184
Homeless Program Multi Service Centers 14.235 420,049 412,891
HOME Investment Partnerships Program 14.239* 4,048,881 3,559,839
Housing Opportunities for Persons with AIDS 14.241 438,542 301,032
Opportunities for Youth-Youthbuild Program 14.243 318,423 318,423
Sub-total Direct Programs 13,418,429 9,734,734
Pass-Through State Department of Housing and Community:
Emergency Shelter Grants Program 14.231 113,127 113,127
Sub-total Pass-Through Programs 113,127 113,127
Total U.S.Department of Housing and Urban Development $ 13,531,556 $ 9,847,861
U.S.DEPARTMENT OF JUSTICE
Direct Programs:
Southwest Border Prosecution Initiative 16.000 $ 7,393 $ -
Federal Forfeiture 16.000 7,446 -
Truancy Reduction Demonstration Program 16.541 38,691
National Institute of Justice DNA Backlog Reduction 16.560 8,546
National Institute of justice DNA Capacity Enhancement Program 16.560 94,086 -
Local Law Enforcement Block Grant 16.592 125,724 -
Grants to Encourage Arrest Policies and Enforcement of Protection Orders 16.590 256,307 94,042
State Criminal Alien Assistance Program 16.606 500,000 -
' Public Safety Partnership and Community Oriented Policing Grants 16.710 335,496 -
Sub-total Direct Programs 1,373,689 94,042
' See Notes to the Schedule of Expenditures of Federal Awards.
*Denotes Major Program 5
County of Contra Costa
Single Audit Reports
Schedule of Expenditures of Federal Awards, Continued
For the year ended June 30,2005
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 JUSTICE,Continued '
Pass-Through State Department of Corrections:
Violent Offenders Incarceration Program 16.586* 4,447,885
Pass-Through State Office of Criminal Justice Planning:
Juvenile Accountability Incentive Block Grants 16.523 112,974 -
Coverdell 2004 Training Program 16.560 8,118 -
Crime Against Peace Officers 16.579 141,900
Violence Against Women Formula Grants 16.588 83,313 -
Pass-Through State Office of Emergency Services:
Victim Witness Assistance Program 16.575 148,872 -
Regional Anti-Drug Program 16.579 741,626 -
Crime Against Peace Officers 16.579 42,748 -
Sub-total Pass-Through Programs 5,727,436
Total U.S.Department of Justice $ 7,101,125 $ 94,042
U.S.DEPARTMENT OF LABOR
Pass-Through State Employment Development Department(EDD):
Workforce Investment Act(WIA)Cluster:
WIA Adult Program 17.258* $ 1,489,404 -
WIA Youth Activities 17.259* 1,290,579 -
WIA Dislocated Worker 17.260* 1,646,627 -
Sub-total WIA Cluster 4,426,610 -
Total U.S.Department of Labor $ 4,426,610 $ -
U.S.DEPARTMENT OF TRANSPORTATION
Direct Programs:
Airport Improvement Program 20.106 $ 499,148 $ -
Sub-total Direct Programs 499,148 -
Pass-Through State Department of Transportation:
Highway Planning and Construction 20.205 349,229
Pass-Through State Office of Traffic Safety:
State and Community Highway Safety 20.601* 170,111 100,543
Pass-Through State Office of Emergency Services:
Hazardous Materials Emergency Preparedness Grant 20.703 9,945 -
Sub-total Pass-Through Programs 529,285 100,543
Total U.S.Department of Transportation $ 1,028,433 $ 100,543
U.S.DEPARTMENT OF TREASURY
Pass-Through Secretary of State Office
Help America Vote Act(HAVA) 39.011 $ 104,463 $ -
Pass-Through State Office of the State Librarian ,
Library Services&Technology Act 45.310 69,090 -
Total U.S.Department of Treasury $ 173,553 $ -
See Notes to the Schedule of Expenditures of Federal Awards. '
*Denotes Major Program 6
County of Contra Costa -
Single Audit Reports
Schedule of Expenditures of Federal Awards, Continued
For the year ended June 30, 2005
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Catalog of Federal Amount of
Domestic Expenditures
Assistance Federal Provided to
Federal Grantor/Pass-Through Grantor/Program Title Number(CFDA) Expenditures Subrecipients
ENVIRONMENTAL PROTECTION AGENCY
Direct Programs:
Brownfields Assessment and Cleanup Cooperative Agreements 66.818 $ 49,259 $ -
1 Total Environmental Protection Agency $ 49,259 $ -
U.S.DEPARTMENT OF ENERGY
Pass-Through State Department of Community Services and Development:
Weatherization Assistance for Low-Income Persons 81.042 $ 132,451 $ -
Total U.S.Department of Energy $ 132,451 $ -
FEDERAL EMERGENCY MANAGEMENT AGENCY
Direct Programs:
Emergency Food and Shelter National Board Program 83.523 $ 60,000 $ 60,000
Sub-total Direct Programs 60,000 60,000
Total Federal Emergency Management Agency $ 60,000 $ 60,000
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 $ 359,573 $ 270,638
Total U.S.Department of Education $ 359,573 $ 270,638
' U.S.DEPARTMENT OF HEALTH AND HUMAN SERVICES
Direct Programs:
I HRSA Chronic Homelessness 92.224 $ 276,196 $ 265,527
National Family Caregiver Support 93.052 114,024
Health Center Grants for Homeless Populations 93.224 304,008
Grants to Provide Outpatient Early Intervention Services
with Respect to HIV Disease 193,918 334,736 45,200
Comprehensive Community Mental Health Services for Children with
Serious Emotional Disturbances(SED) 93.104 1,171,790 352,542
Hansen's Disease National Ambulatory Care Program 93.215 358,409 -
Consolidated Knowledge Development and Application Program 93.230 523,233 504,112
SYNERGY Program 93.243 537,169 537,169
Transitional Living Program for Homeless Youth 93.550 150,000 150,000
Head Start 93.600* 16,570,417 1,999,516
Basic Center Grant 93.623 105,000 105,000
Family to Family System of Care 93.670* 571,501 -
Safe and Bright Futures for Children Initiative 93.990 25,559 24,065
Sub-total Direct Programs $ 21,042,042 S 3,983,131
' See Notes to the Schedule of Expenditures of Federal Awards.
*Denotes Major Program 7
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County of Contra Costa
Single Audit Reports ,
Schedule of Expenditures of Federal Awards, Continued
For the year ended June 30,2005
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
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 $ 13,293 $ 13,293
Special Programs for the Aging-Title VII,Chapter 2-Long-Term
Care Ombudsman Service for Older Individuals 93.042 43,727 43,727
Special Programs for Aging-Title III,Part D-Disease Prevention and
Health Promotion Services 93.043 46,618 -
National Family Caregiver Support 93.052 320,843 320,843
Nutrition Services Incentive Program(NSIP)Formally CFDA#10.570 under USDA 93.053* 270,828 270,828
Medical Assistance Program(Medicaid;title XIX MSSP) 93.778* 679,112 125,000
Centers for Medicare and MedicAid Svcs-Research Demonstrations and
Evaluations(H1CAP) 93.779* 31,783 11,883
Aging Cluster: ,
Special Programs for Aging-Title III,Part B-Grants for Supportive
Services and Senior Centers 93.04=4* 1,176,356 579,335
Special Programs for the Aging-Title III,Part C-Nutrition Services 93.045* 1,182,244 1,182,244 '
Sub-total Aging Cluster 2,358,600 1,761,579
Pass-Through State Department of Alcohol and Drug Programs:
Block Grants for Community Mental Health Services 93.958* 1,576,376 368,915
Block Grants for Prevention and Treatment of Substance A 93.959* 6,027,542 4,085,253
Pass-Through State Department of Community Services and Development:
Low-Income Home Energy Assistance 93.568* 695,608 - ,
Community Services Block Grant 93.569* 690,781 30,000
Pass-Through State Department of Education:
Child Care Mandatory and Matching Funds of the Child
Care and Development Fund 93.596* 809,412 704,456
Child Care and Development Block Grant 93.575* 4,193,528 3,505,413
Pass-Through State Department of Health&Human Services: '
Project Grants and Cooperative Agreements for
Tuberculosis Control Programs 93.116 150,905 -
Projects for Assistance in Transition from Homelessness 93.150 126,933 111,684
Disabilities Prevention 93.184* 2,044,768 -
Community Access Program 93.252 157,324
Immunization Grants 93.268 208,145 -
Bioterrorism Preparedness 93.283* 1,414,478 171,022
:HIV Emergency Relief Projects Grants 93.915 1,446,026 954,565
HIV Care Formula Grants 93.917 156,558 24,090
Maternal and Child Health Services Block Grant to the State 93.994 2,026,180 436,334 ,
Sub-total Pass-Through Programs 25,489,368 12,938,885
See Notes to the Schedule of Expenditures of Federal Awards.
*Denotes Major Program 8
County of Contra Costa ..
Single Audit Reports
Schedule of Expenditures of Federal Awards, Continued:
For the year ended June 30, 2005
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 Pass-Through Programs from previous page 25,489,368 12,938,885
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Pass-Through State Department of Social Services:
Chris Adams/Summit 93.000 360,000
Promoting Safe and Stable Families 93.556 1,505,754
Temporary Assistance to Needy Families 93.558 94,515,626
Child Support Enforcement 93.563* 12,641,674 =
Refugee and Entrant Assistance-State Administered Pr6gram 93.566 142,999
Child Welfare Services-State Grants 93.645 725,136 -
Foster Care-Title IV-E 93.658*. 32,083,087 -
Adoption Assistance 93.659* 7,041,253
Social Services Block Grant 93.667 684,242
Independent Living 93.674 574,509
Medical Assistance Program 93.778* 3,149,097 -
Sub-total Pass-Through Programs 178,912,745 12,938,885
Total U.S.Department of Health and Human Services $ 199,954,787 $ 16,922,016
_U.S.DEPARTMENT OF HOMELAND SECURITY
_Direct Programs:
Respiratory Protection Program 97.044 $ 154,298 $ -
Sub-total Direct Programs 154,298 -
Pass-Through State Office of Emergency Services:
State Domestic Preparedness 97.004* 1,726,722 259,596
FY 04 Emergency Management Performance 97.042 162,410 32,500
Sub-total Pass-Through Programs 1,889,132 292,096
Total U.S.Department of Homeland Security $ 2,043,430 $ 292,096
OFFICE OF THE PRESIDENT
Pass-Through San Mateo County Sheriff:
High Intensity Drug Trafficking Area 99.999 $ 110,065 $ -
Total Office of the President $ 110,065 $ -
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 239,603,384 $ 27,587,196
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*Denotes Major Program 9
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Countyof Contra Costa
Single Audit Reports
Notes to the Schedule of Expenditures of Federal Awards
For the year ended June 30,2005 1
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) that conducted a separate single audit in
accordance with OMB A-133. The County's reporting entity is defined in Note 1A 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
1 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
I 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, 2005:
CFDA Amount
I Program Title Number Outstanding
Community Development Block Grant 14.218 $ 24,708,608
HOME Investment Partnerships Program 14.239 21,858,018
Housing Opportunities for Persons with AIDS 14.241 3,214,242
$ 49,780,868
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County of Contra Costa
Single Audit Reports
Notes to the Schedule of Expenditures of Federal Awards, Continued
For the year ended June 30, 2005
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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 ended June 30, '
2005:
Federal
CFDA
Program Title Number Amount
Weatherization Assistance for low-Income Person 81.042 $ 132,451
Low-Income Home Energy Assistance 93.568 S 695,608
Community Services Block Grants 93.569 $ 690,781
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 accompanying Schedule because they are
separately audited. The programs of the Authority for the year ended March 31,2005 were as follows:
CFDA Federal
Program Title Number Expenditures '
U.S.Department of Housing and Urban Development
Community Development Block Grant 14.218 $ 82,957
Low Income Housing Assistance Program Section 8 Moderate Rehabilitation 14.856 139,593
Housing Choice Voucher 14.871 85,249,853
Section 8 Housing Choice Voucher 14.855 34,964
Shelter Plus Care 14.238 2,671,780 '
Public and Indian Housing 14.850 3,750,821
Public Housing Capital Fund 14.872 3,945,831
Camp DEFY(Drug Education for Youth) 16.609 16,722
Total U.S.Department of Housing and Urban Development $ 95,892,521
12
County of Contra Costa
7�
Single Audit Reports
1 Notes to the Schedule of Expenditures of Federal Awards, Continued
For the year ended June 30,2005
I
7. PROGRAMS FUNDED THROUGH1 THE STATE OFFICE OF CRIMINAL JUSTICE PLANNING
(OCJP)
A. The following represents federal expenditures for the year ended June 30,2005,for programs passed,
through the Office of Criminal Justice Planning (OCJP):
1. Coverdell 2004 Training Program Grant(CQ03020070) CFDA#16.560
iActual Match
Budget Expenditures Expenditures . . Total Variance
Personal services $ $ - $ = $ - $ -
Operating expenses 29,595 8,118 8,118 21,477
Equipment - - - - -
Total $ 29,595 $ 8,118 $ - $ 8,118 $ 21,477
2. Victim Witness Assistance Center (VW04230070) CFDA #16.575
Actual State Match
Budget Expenditures Expenditures Total Variance
Personal services $ 325,219 $ 81,561 $ 145,000 $ 226,561 $ 98,658
Operating expenses. 143,227 631166 .112,297 . 175,463 (32,236)
Equipment 20,052 4,145 7,367 11,512 8,540
Total $ 488,498 $ 148,872 $ 264,664 $ 413,536 $ 74,962
3. Juvenile Accountability (IP02010070) CFDA#16.523
Actual Hard Match
' Budget I Expenditures Expenditures Total Variance
Personal services $ 125,527 $ 112,974 $ 12,553 $ 125,527 $ -
Operating expenses - - - -
1 Equipment - - - - -
Total $ 125,527 $ 112,974 $ 12,553 $ 125,527 $ -
4. Violence Against Women (PU04030070) CFDA #16.588
Actual State Match
Budget Expenditures Expenditures Total Variance
Personal services $ 111,084 $ 83,313 $ 27,771 $ 111,084 $ -
' Operating expenses
Equipment
Total $ 111,084 $ 83,313 $ 27,771 $ 111,084 $ -
1 I
13
I •
County of Contra Costa
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2005
7. PROGRAMS FUNDED THROUGH THE STATE OFFICE OF CRIMINAL JUSTICE PLANNING
(OCJP),Continued
A. The following represents federal expenditures for the year ended June 30,2005, for programs passed
through the Office of Criminal Justice Planning (OCJP),continued:
5. Crimes Against Peace Officers (VG03010070) CFDA #16.579 '
Actual Match
Budget Expenditures Expenditures Total Variance
Personal services $ 198,000 $ 42,748 $ - $ 42,748 $ 155,252
Operating expenses 2,000 - - - 2,000
Equipment - - - - -
Totals $ 200,000 $ 42,748 $ - $ 42,748 $ 157,252
6. Regional Anti-Drug Program(DC04170070) CFDA #16.579
Actual Match
Budget Expenditures Expenditures Total Variance
Personal services $ 734,210 $ 734,210 $ - $ 734,210 $ -
Operating expenses 7,416 7,416 - 7,416 -
Equipment - - - -
Totals $ 741,626 $ 741,626 $ - $ 741,626 $ -
B. The following represents state expenditures for the year ended June 30, 2005, for programs ,
sponsored by the Office of Criminal Justice Planning (OCJP) and are included as required by the
OCJP Grantee Handbook: ,
1. Vertical Prosecution Program (VB04020070)
Actual Match
Budget Expenditures Expenditures Total Variance
Personal services $ 276,728 $ 276,728 $ - $ 276,728 $ -
Operating expenses 2,795 2,795 - 2,795 -
Equipment - - - -
Totals $ 279,523 $ 279,523 $ - $ 279,523 $ -
14 ,
County of Contra Costa
Single Audit Reports
Schedule of Findings and Questioned Costs.
For the year ended June 30,2005
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.
a7. The programs tested as major programs include:
0 _ Major Program: Expenditures
State Administrative Matching Grants for Food Stamp $ 7,847,423
Community Development Block Grants/Entitlement Grants. 8,036,321
HOME Investment Partnerships Program 4,048,881
Violent Offenders Incarceration Program 4,447,885
WIA Adult Program 1,489,404
WIA Youth Activities 1,290,579
WIA Dislocated Worker 1,646,627
State and Community Highway Safety 170,111
<� Head Start 16,570,417
Family to Family System of Care 571,501
i
Nutrition Services Incentive Program(NS1P)Formally CFDA#10.570 under USDA 270,828
Medical Assistance Program(Medicaid;title XIX MSSP) 679,112
Centers for Medicare and MedicAid Svcs-Research Demonstrations and
Evaluations(HICAP) 31,783
i
Special Programs for Aging-Title III,Part B-Grants for Supportive
Services and Senior Centers 1,176,356
Special Programs for the Aging-Title III,Part C-Nutrition Services 1,182,244
Block Grants for Community Mental Health Services 1,576,376
Block Grants for Prevention and Treatment of Substance A 6,027,542
Low-Income Home Energy Assistance 695,608
i
Community Services Block Grant 690,781
Child Care Mandatory and Matching Funds of the Child
Care and Development Fund 809,412
Sub-total 59,259,191
15
County of Contra Costa ,
Single Audit Reports
Schedule of Findings and Questioned Costs, Continued
.For the year ended June 30, 2004
A. SUMMARY OF AUDIT RESULTS,Continued
7. The programs tested as major programs include,continued:
Major Program Expenditures '
Sub-total from previous page $ 59,259,191
Child Care and Development Block Grant 4,193,528
Disabilities Prevention 2,044,768
Bioterrorism Preparedness 1,414,478
Child Support Enforcement 12,641,674
Foster Care-Title N-C 32,083,087
Adoption Assistance 7,041,253
Medical Assistance Program 3,149,097
State Domestic Preparedness 1,726,722
Total Major Program Expenditures $ 123,553,798
Total Federal Award Expenditures $ 239,603,384
Percent of Total Federal Award Expenditures 51.57%
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. r
B. FINDINGS-FINANCIAL STATEMENTS AUDIT
No matters were reported. ,
16
iCounty of Contra Costa
Single Audit Reports
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30,2004
C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAM AUDIT .
i05-1 U.S. DEPARTMENT OF LABOR
Workers Investment Act Grant-Youth, (CFDA Number 17.259) - Eligibility
' Passed through the State of California,Employment Development Department
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 in the individual grant agreements of the respective
programs. The Workerforce Investment Act Grant - Youth agreement requires that
the income of applicants be verified to determine eligibility.
Condition During the performance of our audit, we noted that two of the ten applicants tested
did not have income verification documented in the applicants' files.
Questioned Costs The amount for questioned costs could not be determined.
Context and Effect Documentation of income verification needs to be maintained in order to verify the
eligibility of the applicant to participate in the program.
Recommendation We recommended that the County strengthen its controls by providing periodic
review of applicant files to ensure that all necessary documentation to support the
applicants' eligibility has been obtained.
Management's
Response The Contra Costa Workforce Development Board will assign its case management
supervisors to quarterly review Workforce Investment Act Youth files. A limited
number of files will be selected randomly, excluding files reviewed within the last 12
months. A quarterly file review checklist has been developed and will serve to guide,
facilitate, and document the review of each file selected. One copy of each checklist
will be held in a central file at the Workforce Development Board office and a second
I copy placed in the participant's file. Case managers will immediately correct any
case files found to be missing required case documentation. Corrections to
incomplete or inaccurate files will be noted on the quarterly review for tracking
purposes.
117
County of Contra Costa
Single Audit Reports
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30, 2004
1
C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT,
Continued ,
0.3-2 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Head Start Grant, (CFDA Number 93.600) -Eligibility '
Administered by the County's Community Services Department
Criteria In accordance with OMB Circular A-133, grantees are required to abide by the '
eligibility requirements in the individual grant agreements of the respective
programs. The Head Start Grant agreement requires that the income of applicants be
verified to determine eligibility.
Condition During the performance of our audit, we noted that two of the ten applicants tested
did not have income verification documented in the applicants' files. '
Questioned Costs The amount for questioned costs could not be determined.
Context and Effect Documentation of income verification needs to be maintained in order to verify the ,
eligibility of the applicant to participate in the program.
Recommendation We recommended that the County strengthen its controls by providing periodic ,
review of applicant files to ensure that all necessary documentation to support the
applicants' eligibility has been obtained.
Management's
Response Contra Costa County management is implementing a new income documentation
procedure to ensure adherence to Head Start regulations. The new procedure
requires appropriate staff to conduct monthly reviews of client-children's files to
ensure that income documentation, including signed verification by staff, are
obtained. It is anticipated that staff will be fully trained and the new procedure
implemented no later than June 1,2006.
18 '
County of Contra Costa
Single Audit Reports
Schedule of Findings and Questioned Costs, Continued
For the year ended June 30,2004
C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL. AWARD PROGRAM AUDIT,
. Continued
05-3 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Substance Abuse and Mental Health Services Block Grant (SAMHSA), (CFDA
Number 93.658) -Eligibility
Passed through the State of California, Department of Mental Health
Administered by the County's Health Services Department .
Criteria In accordance with OMB Circular A-133, grantees are required to abide by the.
1 eligibility requirements in the individual grant agreements of the respective
programs. The SAMHSA Grant agreement requires that the County maintain
applicant files which contain verification of the applicants' identity and inability to
pay for services to determine eligibility.
Condition- During the performance of our audit, we noted that the County did not retain the
i� detailed client services reports used to prepare their claim for reimbursement.
Therefore,verification of patient eligibility could not be determined.
Questioned Costs The amount for questioned costs could not be determined.
Context and Effect Maintaining detailed records to support the amounts claimed for reimbursement,will
serves as a means to test and verify the eligibility of the applicants that participated in
the program.
Recommendation We recommended that the County strengthen its controls by requiring that detailed
supporting documentation for amounts claimed be maintained.
' Management's
Response Contra Costa County management agrees to implement procedures to maintain the
detailed applicant files supporting the client's identity and inability to pay for
services for all reimbursements claimed under the grant. Management will insure
that the detailed client service reports are available for use in the verification of
patient eligibility for services provided under the grant program. It is anticipated
that this procedure will be implemented no later than April 15,2006.
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County o Contra Costa
a '
Single Audit Report ,
Summary Schedules of Prior Audit Findings
For the year ended June 30,2004
1
C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT,
Continued ,
The following is the status of audit findings reported in the prior year's schedule of findings and
questioned costs: '
04-1 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Community Service Block Grant, (CFDA Number 93.569) -Eligibility '
Passed through the State of California, Department of Community Services and
Development
Administered by the County's Community Services Department ,
Criteria In accordance with OMB Circular A-133, grantees are required to abide by the
eligibility requirements in the individual grant agreements of the respective
programs. The Community Service Block Grant agreement requires that functional
timesheets be maintained for individuals who are charging time to the program to
support the eligibility of their salaries for reimbursement. '
Condition During the performance of our audit, we noted that the salaries of the advocates for
37 families charged to the program were not supported by functional timesheets. '
Their time charged to the program was estimated and a journal entry was prepared
to charge the program for a portion of their salaries.
Questioned Costs The amount for questioned costs could not be determined.
Context and Effect By ensuring that functional timesheets are maintained, it serves to document the '
actual time which the advocates performed services for the program. This will also
help ensure that claims for salary reimbursements are accurate.
Recommendation We recommended that the County strengthen its controls by providing periodic '
� g g
review of functional timesheets to ensure that they are prepared correctly and in a
timely manner. ,
Management's
Response On a monthly basis the fiscal unit of the Community Services Department will review
the family advocates' timesheets to make sure that the hours worked are
appropriately charged to the correct program and that the timesheets are submitted
in a timely manner.
Status Implemented.
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xi SUPPLEMENTAL SCHEDULES
21
County of Contra Costa
Employment and Human Services Department
Supplemental Schedule of Expenditures for Federal and State Awards
Summary Schedule
For the year ended June 30,2005 ,
Catalog of Federal '
Federal/State Grantor Domestic Grant/
Pass-through Grantor Assistance Contract State Federal ,
Program Title Number(CFDA) Number Expenditures Expenditures
Federal Awards
U.S.Department of Health&Human
Services Aging Cluster
Passed through CA Dept of Aging: 93.044 AP-0405-07 $ 132,546 $ 1,176,356 '
Special Programs for Aging-Title III Part B
Grants for Supportive Services and
Senior Centers
Special Programs for Aging Title IIIC, 93.045 AP-0405-07 122,067 1,182,244
Nutrition Services
Nutrition Services Incentive Program 93.053 AP-0405-07 - 270,828
(NSIP)
Special Programs for Aging-Title III Part D 93.043 AP-0405-07 2,310 46,618 ,
Disease Prevention and Health Promotion
Services
National Family Caregiver Support Title III 93.052 AP-0405-07 - 320,843
Part E
Special Programs for Aging Title VII A 93.042 AP-0405-07 6,274 43,727
Chapter 2 Long Term Care Ombudsman
Services for Older Individuals ,
Special Programs for Aging Title VII B 93.041 AP-0405-07 594 13,293
Chapter 3 Programs for Prevention of
Elder Abuse,Neglect and Exploitation
Centers for Medicare and Medicaid Services 93.779 HI-0405-07 - 31,783
(CMS)Research,Demonstrations and
Evaluations(Health Insurance Counseling
and Advocacy Program,HICAP)
Medical Assistance Program(Medicaid 93.778 MS-0405-27 222,096 679,112
Title XIX)Multi-Senior Services Program
MSSP
U.S.Department of Agriculture '
Passed through CA Dept of Aging:
Senior Farmer's Market 10.576 - 11,778
Total Expenditures Federal Awards $ 485,887 $ 3,776,582
22 '
Countyof Contra Costa
.
Employment and Human Services Department
Supplemental Schedule of Expenditures-for Federal and State Awards
Summary Schedule, Continued
' For the year ended June 30,2005
Catalog of Federal
Federal/State Grantor Domestic Grant/
' Pass-through Grantor Assistance Contract State Federal
Program Title Number(CFDA) Number Expenditures Expenditures
State Awards
California Department of Aging
Direct State Programs:
Ombudsman Initiative Federal Citation Penalty AP-0405-07 $ 36,524 $ -
CBSP-Brown Bag AP-0405-07 23,277 -
CBSP-ADCRC AP-0405-07 80,000
CBSP-Linkages AP-0405-07 221,636 =
CBSP-Respite AP-0405-07 10,394
HICAP Reimbursement HI-0405-07 78,815 -
HICAP FUND HI-0405-07 39,361 -
Total Expenditures State Awards - $ 490,007 $ -
23
County of Contra Costa
Community Services Department
Supplemental Schedule of Revenues and Expenditures
Summary Schedule
For the year ended June 30,2005
Catalog of Federal '
Domestic
Assistance Total '
DCSD Contract No. Number(CFDA) Expenditures
04C-1509 Weatherization 81.042 $ 101,122 '
05C-1559 Weatherization 81.042 31,329
Total $ 132,451
04B-5260 ECIP 93.568 $ 36,660 ,
04B-5260 Assurance 16 93.568 47,840
04B-5260 HEAP-Outreach 93.568 15,006
04B-5260 ECIP and HEAP Intake Costs 93.568 8,447
04B-5260 ECIP and HEAP Administrative Costs 93.568 39,608
04B-5260 Weatherization 93.568 222,701
058-5309 ECIP 93.568 28,758
05B-5309 Assurance 16 93.568 36,151
05B-5309 HEAP-Outreach 93.568 14,127
05B-5309 ECIP and HEAP Intake Costs 93.568 10,902
05B-5309 ECIP and HEAP Administrative Costs 93.568 26,540
0413-5260 Weatherization 93.568 208,868
Total $ 695,608
0417-4433 Community Services Block Grant 93.569 $ 452,395
0517-4608 Community Services Block Grant 93.569 238,386
Total $ 690,781 ,
24 '
' County of Contra Costa
Community Services Department
Supplemental Schedule of Revenues and Expenditures.. ,
DCSD Contract No. 04C-1509 Weatherization (CFDA #81.042)
' For the year ended June 30,2005
Total Recorded Total Reported Total Budgeted
Amount Amount Amount
REVENUE:
Grant revenue $ 123,404 $ 123,404 $ 123,404
Total revenue $ 123,404 $ 123,404 $ 123,404
EXPENDITURES:
Administrative: -
Salaries&wages $ - -$ $
Fringe benefits - - -
Facilities - - =
Telephone-communication
Accounting 5,513 5,513 6,170
Office supplies - - _
Miscellaneous
Total administrative 5,513 5,513 6,170
' Other Program:
Training and technical assistance - - 3,419 .
Health and safety 1,150 1,150 5,000
Total other program 1,150 1,150 8,419
Program operations:
Measures 80,486 80,486 100,645
Outreach 5,807 5,807 4,102
1 Intake 3,773 3,773 1,044
Client education 4,393 4,393 3,024
Total program operations 94,459 94,459 108,815
ITotal expenditures $ 101,122 $ 101,122 $ 123,404
' 25
County of Contra Costa
Community Services Department '
Supplemental Schedule of Revenues and Expenditures
DCSD Contract No. 05C-1559 Weatherization (CFDA #81.042)
For the year ended June 30, 2005 '
Total Recorded Total Reported Total Budgeted t
Amount Amount Amount
REVENUE: '
Grant revenue $ - $ - $ 123,945
Total revenue $ - $ - $ 123,945 ,
EXPENDITURES:
Administrative:
Salaries&wages $ - $ - $ -
Fringe benefits - - -
Facilities
Telephone-communication - -
Accounting 1,288 1,288 6,198
Office supplies - - -
Miscellaneous - - -
Total administrative 1,288 1,288 6,198
Other Program:
Training and technical assistance 362 362 3,449
Health and safety - - 5,226 '
Total other program 362 362 8,675
Program operations:
Client education 1,077 1,077 4,124
Direct program activities 23,592 23,592 92,166
Intake 1,265 1,265 4,270 '
Outreach 3,329 3,329 7,392
Workers compensation 416 416 1,120
Total program operations 29,679 29,679 109,072 ,
Total expenditures $ 31,329 $ 31,329 $ 123,945
1
26 '
County of Contra Costa
Community Services Department
Supplemental Schedule of Revenues and Expenditures,.
DCSD Contract No. 04B-5260 LIHEAP ASSURANCE 16,INTAKE,ECIP and HEAP (CFDA #93.568)
For the year ended June 30,2005
Total Recorded Total Reported Total Budgeted
Amount Amount Amount
REVENUE:
Grant revenue $ 219,507 $ 219,507 $ 294,989
Total revenue $ 219,507 $ 219,507 $ 294,989
EXPENDITURES:
' Administrative:
Section 3-Administrative Costs $ 39,608 $ 39,608 $ 55,575
Total administrative 39,608 39,608 55,575
' Program:
Section 1-Assurance 16 Program Costs 47,840 47,840 87,340
Section 2-Intake Program Costs for HEAP and ECIP
(eligibility determination) 8,447 8,447 22,211
Section 4-ECIP Program Costs
Outreach(5%of total ECIP allocation) 1,187 1,187 18,771
Furnace Repairs and Replacements 35,473 35,473 77,304
Subtotal Section 4 36,660 36,660 96,075
Section 5'-' HEAP Outreach and WPO Program Costs
Outreach(5%of total HEAP allocation) 15,006 15,006 33,788
Subtotal Section 5 15,006 15,006 33,788
Total expenditures $ 147,561 $ 147,561 $ 294,989
27
County of Contra Costa
Community Services Department '
Supplemental Schedule of Revenues and Expenditures
DCSD Contract No. 04B-5260 Weatherization (CFDA #93.568)
For the year ended June 30,2005 '
Total Recorded Total Reported Total Budgeted '
Amount Amount Amount
REVENUE:
Grant revenue $ 360,779 $ 360,779 $ 457,786
Total revenue $ 360,779 $ 360,779 $ 457,786
EXPENDITURES:
Administrative: '
Administrative Costs $ 18,116 $ 18,116 $ 36,550
Total administrative 18,116 18,116 36,550
Program:
Intake(eligibility determination) 4,448 4,448 8,727
Program Costs 181,298 181,298 381,963 '
Other Program Costs
Outreach 15,452 15,452 21,819
Training 3,387 3,387 8,727 '
Total program 204,585 204,585 421,236
Total expenditures $ 222,701 $ 222,701 $ 457,786 ,
28 '
County of Contra Costa
Community Services Department
Supplemental Schedule of Revenues and Expenditures
DCSD Contract No. 0513-5309 LIHEAP ASSURANCE 16, INTAKE, ECIP and HEAP (CFDA #93.568)
' For the year ended June 30,2005
Total Recorded Total Reported Total Budgeted
Amount Amount Amount
REVENUE:
Grant revenue $ 66,556 $ 66,556 $ 304,694
Total revenue $ 66,556 $ 66,556 $ 304,694
EXPENDITURES:
Administrative:
Section 3-Administrative Costs I $ 26,540 $ 26,540 $ 59,157
Total administrative 26,540 26,540 59,157
Program:
Section 1-Assurance 16 Program Costs 36,151 36,151 95,814
Section 2-Intake Program Costs for HEAP and ECIP
(eligibility determination) 10,902 10,902 24,478
Section 4-ECIP Program Costs
' Cooling Service Repair/Replacement 1,844 1,844 20,612
Heating Service Repair/Replacement 16,012 16,012 48,095
Outreach I 10,902 10,902 20,192
' Subtotal Section 4 28,758 28,758 88,899
Section 5-HEAP Outreach and WPO Program Costs
' Outreach 14,127 14,127 36,346
Subtotal Section 4 14,127 14,127 36,346
' Total expenditures $ 116,478 $ 116,478 $ 304,694
1 I
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County of Contra Costa
Community Services Department '
Supplemental Schedule of Revenues and Expenditures
DCSD Contract No. 05B-5309 Weatherization (CFDA#93.568) 7.
For the year ended June 30,2005 '
Total Recorded Total Reported Total Budgeted '
Amount Amount Amount
REVENUE: '
Grant revenue $ 132,680 $ 132,680 $ 495,677
Total revenue $ 132,680 $ 132,680 $ 495,677
EXPENDITURES:
Administrative: '
Administrative Costs $ 15,412 $ 15,412 $ 39,814
Intake - - - '
Total administrative 15,412 15,412 39,814
Program:
Program Costs 192,883 192,883 445,949 '
Other Program Costs
Outreach - - -
Training 573 573 9,914 '
Total program 193,456 193,456 455,863
Total expenditures $ 208,868 $ 208,868 $ 495,677 ,
30 '
w
' Countyof Contra Costa
,
Community Services Department
' Supplemental Schedule of Revenues aind Expenditures
DCSD Contract No. 04F-4433 CSBG (CFDA #93.569)
For the year ended June 30,2005
Total Recorded Total Reported Total Budgeted
Amount Amount Amount
REVENUE:
' Grant revenue $ 421,121 $ 421,121 $ 641,225
' Total revenue $ 421,121 $ 421,121 $ 641,225
EXPENDITURES:
' Administrative:
Salaries&wages $ 66,474 $ 66,474 $ 149,137
Fringe benefits 34,846 34,846 72,406
Travel 4,822 4,822 22,600
Space(rent/lease) 38,430 38,430 30,000
Consumable supplies 3,045 3,045 5,096
Equipment lease/purchase 68,863 68,863 20,000
Other costs 64,018 64,018 66,044
Total administrative 280,498 280,498 365,283
Program:
Salaries&wages 75,881 75,881 161,926
' Fringe benefits 60,665 60,665 78,616
Contract services 5,351 5,351 5,400
Subcontractors 30,000 30,000 30,000
' Total program 171,897 171,897 275,942
Total expenditures $ 452,395 $ 452,395 $ 641,225
31
County of Contra Costa
Community Services Department
Supplemental Schedule of Revenues and Expenditures
DCSD Contract No. 05F4608 CSBG (CFDA #93.569)
For the year ended June 30, 2005 '
Total Recorded Total Reported Total Budgeted i
Amount Amount Amount
REVENUE: '
Grant revenue $ 233,580 $ 233,580 $ 637,035
Total revenue $ 233,580 $ 233,580 $ 637,035 '
EXPENDITURES:
Administrative:
Salaries&wages $ 52,351 $ 52,351 $ 105,581
Fringe benefits 32,206 32,206 61,556
Travel - - 2,500
Space(rent/lease) 32,280 32,280 33,000
Consumable supplies 2,605 2,605 5,000
Equipment lease/purchase - - - '
Consultant Services - - -
Other costs 33,658 33,658 18,515 '
Total administrative 153,100 153,100 226,152
Program:
Salaries&wages 51,645 51,645 234,286
Fringe benefits 33,641 33,641 136,597
Contract services - - 10,000 '
Subcontractors - - 30,000
Total program 85,286 85,286 410,883
Total expenditures $ 238,386 $ 238,386 $ 637,035 '
32 ,
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COUNTY OF CONTRA COSTA
' REDEVELOPMENT AGENCY
�(A component unit of the
County of Contra Costa, California)
I
Independent Auditors' Reports
'
Management's Discussion and Analysis,
Basic Financial Statements, and
Supplementary Information
' For the Fiscal Year Ended June 30, 2005
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
For the Fiscal Year Ended June 30, 2005
Table of Contents
' I Page(s)
Independent Auditors' Report.................................................................................. 1 - 2
1 Management's Discussion and Analysis (Required Supplementary Information) ................. 3 - 7
i
Basic Financial Statements:
Government-wide Financial Statements - Governmental Activities:
Statement of Net Assets.......I................................................................................8
Statement of Activities ........................................................................................9
Fund Financial Statements - Governmental Funds:
i
BalanceSheet........................................................................................... to- 11
' Reconciliation of the Balance(Sheet of Governmental Funds to the
Statement of Net Assets of Governmental Activities.............................................. 12
Statement of Revenues, Expenditures and Changes in
' Fund Balances ..................................................................................... 13 - 14
Reconciliation of the Statement of Revenues, Expenditures, and
' Changes in Fund Balances of Governmental Funds to the
Statement of Activities of Governmental Activities ............................................... 15
Fund Financial Statements - Fiduciary Fund:
' . Statement of Changes in Fiduciary Net Assets.:.;...................................................... 16
Notes to Basic Financial Statements .................................................................... 17 - 26
' Supplementary Information (Combining Financial Statements):
Other Governmental Funds:
Combining Balance Sheet............................................................................. 27 - 28
' Combining Statement of Revenues, Expenditures and Changes in
FundBalances .....................................................................................29 - 30
' 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....................................................... 31 - 32
1
C&L
Caporicci&Larson
Certified Ptiblic Accountants
INDEPENDENT AUDITORS'REPORT
I
To the Board of Directors
Contra Costa County Redevelopment Agency
' Martinez,California
We have audited the accompanying financial statements of the governmental activities, each major
fund and the aggregate remaining fund information of the Contra Costa County Redevelopment
Agency (Agency), a component unit of the County of Contra Costa, California, as of and for the fiscal
year ended June 30, 2005, which collectively comprise the Agency's basic financial statements as listed
' in the accompanying table of contents. These financial statements are the responsibility of the
Agency's management. Our responsibility is to express opinions on these financial statements based
on our audit.
1 We conducted our audit in accordance1with generally accepted auditing standards in the United States
and the standards applicable to financial audits contained in Governinent 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
opinions.
In our opinion, the basic financial statements referred to above present fairly, in all material respects,
the financial position of the governmlental activities, each major fund and the aggregate remaining
fund information of the Agency as of June 30, 2005, and the respective changes in financial position
thereof for the fiscal year then ended in conformity with generally accepted accounting principles in
' the United States.
In accordance with Government Auditing Standards, we have also issued our report dated November 30,
' 2005 on our consideration of the Agency'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 Gozlerninent Auditing Standards and should be
read in conjunction with this report in considering the results of our audit.
As described in Note 2 to the basic financial statements, the Agency adopted Government Accounting
Standards Board No.40,Deposit and Inz)estnient Risk Disclosures, (an amendment of GASB Statement No. 3).
The accompanying Required Supplementary Information, such as Management's Discussion and
' Analysis (MD&A), as listed in the accompanying table of contents, is not a required part of the basic
financial statements but is supplementary information required by the Governmental Accounting
Toll Free Ph:(877)862-2200Toll Frcc Pax:(866)416-0927
Oakland Orange County Sacramento San Diego
' 180 Grand Ave.,Suite 1365 3184-D Airway Avenue 777 Campus Commons Rd.,Suite 200 4858 Mercury,Suite 105
Oakland,California 94612 Costa:Mesa,California 92626 Sacramento,California 95825 San Diego,California 92111
To the Board of Directors
Contra Costa County Redevelopment Agency '
Martinez,California
Page 2
1
Standards Board. We have applied certain limited procedures,which consisted principally of inquiries
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.
Our audit was conducted for the purpose of forming an opinion on the financial statements that '
collectively comprise the Agency's basic financial statements. The supplementary information
identified in the accompanying table of contents is presented for purposes of additional analysis and is
not a required part of the basic financial statements of the Agency. 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. '
exmj;ed �
Oakland,California
November 30,2005 '
2 '
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Management's Discussion and Analysis
June 30, 2005
i
' As management of the Contra Costa County Redevelopment Agency (Agency), a component unit of the
County of Contra Costa (County), we offer readers of the Agency's financial statements this narrative
overview and analysis of the financial activities of the Agency for the fiscal year ended June 30, 2005.
' Readers are encouraged to consider the following information in conjunction with the Agency's
financial statements.
FINANCIAL HIGHLIGHTS
' . The assets of the Agency excee ded its liabilities by $1,737,782 (net assets). Of this amount,
$87,878 is invested in capital assets, $14,134,881 is restricted for various purposes, and
$12,484,977 is an unrestricted deficit.
The Agency's governmental funds reported an ending fund balance of$85,147,063, a decrease of
$166,956 over prior year's fund balance.
' . The Agency had general revenues of $14,424,703, program revenues (operating and capital
contributions) of$1,017,201 andl program expenses of$14,859,100.
OVERVIEW OF THE FINANCIAL STATEMENTS
The Agency's basic financial statements are comprised of three components: 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the Agency's finances, in a manner similar to a private-sector
' business.
The statement of net assets presentsl information on all of the Agency'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 Agency is improving or declining.
The statement of activities presents information showing how the Agency's net assets changed during
' the most recent fiscal year. All clianges in net assets are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods.
The government-wide financial statements report on the functions of the Agency that is principally
' supported by taxes and intergovernmental revenues (governmental activities). The Agency's principal
function is to improve, rehabilitate and develop certain areas within the County.
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 Agency, like other
state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. Governmental funds are used to account for the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-
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
3
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the fiscal year. Such information may be useful in evaluating aovernment's near-term financing
'
g g
requirements.
The Agency maintains major governmental funds according to their type (e.g., capital projects and debt '
service funds) for each of its five project areas in the governmental funds balance sheet and the
governmental funds statement of revenues, expenditures, and changes in fund balances.
The governmental funds focus is narrower than that of the government-wide financial statements; '
therefore it is useful to compare the information presented in the governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By '
doing so, readers may better understand the long-term impact of the government's near-term financial
decisions. The governmental funds balance sheet and the governmental funds statement of revenues,
expenditures, and changes in fund balances each provide a reconciliation to facilitate this comparison '
between the governmental funds and governmental activities.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. '
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following table presents a comparative analysis of current and prior year balances on the statement '
of net assets for the governmental activities:
Change Change
June 30,2005 June 30,2004 ($) (%) '
Assets,other than capital assets $ 93,453,227 $ 94,340,959 $ (887,732) -0.94%
Capital assets 87,878 87,878 - 0.00%
Total assets 93,541,105 94,428,837 (887,732) -0.94% '
Current liabilities 3,202,384 3,644,059 (441,675) -12.12%
Noncurrent liabilities 88,600,939 89,629,800 (1,028,861) -1.15%
Total liabilities 91,803,323 93,273,859 (1,470,536) -1.58% '
Net assets:
Invested in capital assets 87,878 87,878 - 0.00%
Restricted 14,134,881 29,149,758 (15,014,877) -51.51%
Unrestricted deficit (12,484,977) (28,082,658) 15,597,681 -55.54% '
Net assets $ 1,737,782 $ 1,154,978 $ 582,804 50.46%
The Agency's assets decreased slightly over the previous year. Within the assets category, there was a ,
significant change between restricted and unrestricted cash and investments due to a reclassification.
All bond proceeds to be used for capital and housing projects held by the trustee are now classified as
restricted. '
The Agency's liabilities decreased over the previous year as a result of principal debt service payments
made during the year and a decrease in accounts payable. The accounts payable and due to Contra ,
Costa County balances dropped by a net $422,085 over the previous year due to less project activity at
year-end.
The Agency's net assets increased as a result of favorable changes in operations, whereby revenues '
exceeded current year spending. The favorable results from operations will be explained under the
analysis for the statement of activities. During the year, the Pleasant Hill BART Redevelopment
Plan was amended to increase the tax increment limit and the bonded limit, which enabled the ,
Agency to meet the 120% debt service coverage requirement and, therefore, the release of the
escrowed portion of the 2003 Series A Tax Allocation Bonds. Accordingly, the original
proceeds of$13,290,000 and accrued interest was released from the eligibility restriction causing '
the large change within restricted net assets.
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The following table presents a comparative"analysis ofcurrent and prior year changes in net assets of
governmental activities on the statement of activities:
' Change Change
June 30,2005 June 30,2004 ($) (%)
Revenues:
General revenue:
Taxes $ 11,795,362 $ 11,125,219 670,143 6.02%
Investment income . 11,429,957 824,867 605,090 73.36%
' Other 1,199,384 56,929 1,142,455 2006.81%
Program revenue:
Capital contributions 949,701 640,610 309,091 48.25%
' Operating contributions 67,500 - 67,500 0.00%
Total revenues 15,441,904 12,647,625 2,794,279 22.09%
Expenses:
Community development 19,251,097 5,584,623 3,666,474 65.65%
' Housing 990,973 2,486,167 (1,495,194) -60.14%
Debt service 14,617,030 4,205,177 411,853 9.79%
Total expenses 14,859,100 12,275,967 2,583,133 21.04%
Change in net assets 582,804 371,658 211;146 56.81%
Net assets,beginning of year 1,154,978 783,320 371,658 47.45%
Net assets,end of year $ 1,737,782 $ 1,154,978 $ 582,804 50.46%
1 As noted earlier, net assets may serve over time as a useful indicator of a government's improving or
declining financial position. In the case of the Agency, assets exceeded liabilities by $1,737,782, an
improvement over the previous year by 50.46%. "
The Agency's primary source of revenue.,is property'taxes, referred to in the accompanying basic
I financial statements as "property tax increment The 6.02% growth in property taxes represents a
slow down in the assessed values within the Agency's five project areas, which has seen double digit
growth in past years. Property taxes allocated to the Agency are computed in the following manner:
a. The assessed valuation of all property within each Agency project area is determined on
the date of adoption of the Redevelopment Plan by a designation of a fiscal year
assessment roll.
' b. A portion of the property taxes related to the incremental increase in assessed values
after the adoption of the Redevelopment Plan are allocated to the Agency; all taxes on
' the "frozen" assessed valuation of the property are allocated to the County and other
agencies receiving taxes from the project area in addition to mandatory pass-through
amounts.
Other significant changes in revenues include a significant increase in investment income, other
revenues and capital contributions. !Investment income rose primarily as a result of a higher yield on
investments held over the previous year and a full year's investment of the 2003 Series A and B Tax
1 Allocation Bond proceeds held by trustees. Other revenues include a return of residual receipts in the
amount of $1,115,573 on the sale)of properties within Nantucket Cove, as part of the Bay Point
Residential Infill Project. Capital contributions had a net increase of$309,091 as a result of(1) a new
grant from Contra Costa County, using developer fees for the Greenspace Project within the Pleasant
Hill BART project area; (2) a one-time receipt in fiscal year 2003/04, which was return to source
proceeds from the Unocal refinery; and (3) other small changes within the existing grant sources.
5
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The community development expenses increased $3,666,474 over the previous year due to a significant '
increase in the number of capital projects. Some of the more notable projects include the following, (1)
the various BART Station projects in Pleasant Hill, including the completion of the temporary parking '
site, the replacement parking, the Greenspace Project and the Iron Horse Trail overcrossing; (2) the
North Broadway Project in Bay Point; (3) the relocation of the Agency's offices from the County's
downtown executive offices to the Summit Center, business park within Martinez, CA; (4) the increase '
in the State mandated Educational Revenue Augmentation Fund; and (5) two capital projects within
North Richmond both the 3rd Street enhancements and the Youthbuild Program.
The housing expenses decreased $1,495,194 over the previous year due to a decrease of activity in '
housing projects. The primary cause of the drop in housing projects is the completion of the housing
portion of the North Broadway Project in Bay Point during fiscal year 2003/04, which was slightly
offset by an increase in the Pleasant Hill Park Regency project during fiscal year 2004/05. ,
FUND FINANCIAL ANALYSIS
As noted earlier, the Agency uses fund accounting to ensure and demonstrate compliance with finance- '
related legal requirements. The Agency's governmental funds are discussed below:
Governmental funds. The focus of the Agency's governmental funds is to provide information on near- '
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Agency's financing requirements. In particular, fund balance may serve as a useful measure of a
government's net resources available for spending for program purposes in future years. '
The Agency's governmental funds reported an ending fund balance of $85,147,063. The Agency's
major source of revenue is incremental property taxes and major source of financing is tax allocation ,
bonds. The major uses of these funds are to construct improvements that eliminate slums and blight
within the project areas. The fund balance primarily represents the accumulation of incremental
property tax, unspent proceeds from tax allocation bonds, and investment income. The fund balance is '
reserved for legal restrictions and contractual commitments, including restrictions for encumbrances
with third parties, bond proceeds with purpose restrictions, funds required to be used for the childcare
facilities and landscaping, low and moderate housing activities, and debt service payments. Unreserved ,
fund balance represents available funds to be budgeted for future projects in accordance with annually
adopted budgets.
The Agency's change in fund balances in the amount of$166,956 was due to current year expenditures '
exceeding revenues, as analyzed in the discussion of the changes in the statements of activities above
with a few exceptions. These exceptions relate to differences in the accrual and modified accrual bases
of accounting, as follows: (1) the recognition of grant revenues in the fund financial statements during '
the year collected, as they were not considered "available" in the year the reimbursable cost was
incurred; (2) the principal payments on debt service are an expenditure in governmental funds, but a
reduction of a liability in the government-wide financial statements; and (3) accrued interest on '
advances and other debt items are considered expenses in the government-wide financial statements, but
not on the governmental funds as they do not represent a reduction of financial resources.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. The Agency's investment in capital assets represents land in the amount of $87,878.
Additional information on the Agency's capital assets can be found in Note 2(f) to the basic financial '
statements.
6
' Long-Term Liabilities. The Agency's longterm liabiliiies•is comprised of the following:
Tax Allocation Bonds j net of debt related items $ 82,307,271
Advances from Contra Costa County 6,293,668
Total long-term liabilities $ 88,600,939
Additional information on the Agency's Long-Term Liabilities can be found in the Note 6 to the basic
financial statements.
FUTURE ECONOMIC FACTORSI
' The State of California is continuing to divert property tax increment, through the Educational Revenue
Augmentation Fund. The Agency paid $806,352 in May 2005 and will be required to make a payment
of the same amount in May 2006. These payments were budgeted and incorporated into the overall use
of property tax increment.
' REQUESTS FOR INFORMATION
' This financial report is designed to provide a general overview of the Agency's finances for all those
with an interest. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Redevelopment Director, Contra Costa
County Redevelopment Agency, 2530 Arnold Drive, Suite 190, Martinez, CA 94553.
1
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY'
' STATEMENT OF NET ASSETS
GOVERNMENTAL ACTIVITIES
JUNE 30, 2005
ASSETS
Cash and investments $ 18,614,747
Receivables 1,378,494
' Due from Contra Costa County 74,363
Restricted cash and investments 67,500,798
Notes receivable 4,465,248
' Land held for resale 781,045
Deferred charges I 638,532.
Nondepreciable capital assets - land 87,878
' Total assets 93,541,105
LIABILITIES
Accounts payable and accrued liabilities 144,773
Due to Contra Costa County 1,198,984
Accrued interest 1,858,227
Deposits payable 400
Noncurrent liabilities:
Due within one year I 1,080,144
Due in more than one year 87,520,795
' Total liabilities 91,803,323
NET ASSETS
Invested in capital assets 87,878
' Restricted for:
Debt service 11,023,108
Housing projects 2,554,073
Programs with purpose restriction 557,700
Unrestricted deficit (12,484,977)
Total net assets $ 1,737,782
See accompanying notes to the basic financial statements.
8
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY '
STATEMENT OF ACTIVITIES '
GOVERNMENTAL ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2005
Capital Debt
Total Projects Housing Service '
EXPENSES
General administration $ 1,353,798 $ 1,350,746 $ 3,052 $ -
Fiscal agreement pass-throughs 999,307 999,307 -
County administration fee 115,860 92,688 23,172 -
Educational Revenue
Augmentation Fund payment 806,352 806,352 -
Capital projects 3,494,416 3,182,817 311,599 -
Housing projects 1,031,525 378,375 653,150 -
Community activities 1,423,165 1,423,165 - -
Economic development 217,170 217,170 - - '
Planning activities 164,743 164,743 - -
Intergovernmental 635,734 635,734 - -
Interest on debt 4,617,030 - - 4,617,030 '
Total expenses 14,859,100 9,251,097 990,973 4,617,030
PROGRAM REVENUES '
Capital contributions 949,701 949,701 - -
Operating contributions 67,500 67,500 -Net expenses (13,841,899) $ (8,233,896) $ (990,973) $ (4,617,030) '
GENERAL REVENUES
Property tax increment 11,795,362
Investment income 1,429,957 ,
Other 1,199,384
Total general revenues 14,424,703
CHANGES IN NET ASSETS 582,804
NET ASSETS, BEGINNING OF YEAR 1,154,978
NET ASSETS, END OF YEAR $ 1,737,782 '
See accompanying notes to the basic financial statements.
9
CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
I
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30,2005
' Pleasant Hill BART
Capital Housing Debt
Projects Projects Service
Fund Fund Fund
ASSETS
Cash and investments $ 9,986,801 $ 1,335,150 $ 1,600,653
Interest receivable 78,201 1,305 66,432
Taxes receivable 201,643 49,307
Accounts receivable - - -
Due from Contra Costa County 63,948 - -
', Due from other funds 35,896 - -
Restricted cash and investments 42,266,035 6,152,184
Notes receivable - 350,000 -
1 Land held for resale 85,784 - -
Total assets $ 52,718,308 $ 1,735,762 $ 7,819,269
LIABILITIES
-- Accounts payable and
accrued liabilities $ 37,248 $ $
Due to Contra Costa County 791,471 913 65
Due to other funds 2,553 = -
Accrued interest 1,160,640
Deposits payable - - -
Deferred revenue - 350,000 -
Total liabilities 831,272 350,913 1,160,705
FUND BALANCES
Reserved for:
Encumbrances 837,310
Land held for resale 85,784 - -
Bond proceeds with purpose restriction 41,634,568 - -
Childcare facilities program 524,407
Landscaping funds
Housing projects - 1,384,849 -
Debt service - - 6,658,564
' Unreserved, reported in
Capital projects funds 8,804,967 - -
Total fund balances 51,887,036 1,384,849 6,658,564
Total liabilities and fund balances $ 52,718,308 $ 1,735,762 $ 7,819,269
' See accompanying notes to the basic financial statements.
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Bay Point North Richmond '
Capital Housing Housing Other
Projects Projects Projects Governmental
Fund Fund Fund Funds Total ,
$ 1,457,593 $ 358,654 $ 551,535 $ 3,324,361 $ 18,614,747
4,604 1,415 2,756 65,137 219,850 '
269,701 67,425 50,628 401,640 1,040,344
- 25,725 - 92;575 118,300
3,501 - - 6,914 74,363
- - 10,222 2,553 48,671 '
2,162,200 735,601 1,319,523 14,865,255 67,500,798
- 2,692,461 1,314,660 108,127 4,465,248
34,111 190,010 10,222 460,918 781,045
$ 3,931,710 $ 4,071,291 $ 3,259,546 $ 19,327,480 $ 92,863,366
$ 546 $ - $ - $ 106,979 $ 144,773 '
97,258 398 230 308,649 1,198,984
24,672 - - 21,446 48,671 '
- - - 697,587 1,858,227
- - 400 400
- 2,692,461 1,314,660 108,127 4,465,248
122,476 2,692,859 1,314,890 1,243,188 7,716,303 ,
984,108 356,275 20,083 1,207,997 3,405,773
34,111 190,010 10,222 460,918 781,045
2,162,200 735,601 1,319,523 11,056,191 56,908,083
28,271 - - - 552,678 ,
- - - 5,022 5,022
96,546 594,828 760,136 2,836,359
- - - 4,461,391 11,119,955 '
600,544 - - 132,637 9,538,148
3,809,234 1,378,432 1,944,656 18,084,292 85,147,063 ,
$ 3,931,710 $ 4,071,291 $ 3,259,546 $ 19,327,480 $ 92,863,366
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CONTRA COSTA COUNTY REDEVELOPMENT'AGENCY i
I
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS OF GOVERNMENTAL ACTIVITIES
JUNE 30,2005
I
Fund balances of all governmental funds(page 11) $ 85,147,063
Amounts reported for governmental activit�es in the
' statement of net assets are different because:
Costs of issuance related to the tax alllocation bonds are capitalized and
amortized over the life of the new bonds. 638,532
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the governmental funds. 87,878
Notes receivables are not available to pay for current period expenditures
and, therefore, are deferred on the modified accrual basis of accounting. 4,465,248
I
Long-term liabilities, including advances from Contra Costa County and
bonds payable, are not due and payable in the current period and, therefore,
are not reported in the governmental funds.
Advances from Contra Costa County $ (6,293,668)
1995A Tax Allocation Bonds (1,405,000)
1995B Tax Allocation Bonds , (2,370,000)
' 1999 Tax Allocation Bonds (34,030,000)
2003A Tax Allocation Bonds (42,820,000)
2003B Tax Allocation Bonds (2,420,000)
' Discount on tax allocation bonds 581,297
Deferred amount on refunding 156,432 (88,600,939) .
Net assets of governmental activities(page 8) $ 1,737,782
See accompanying notes to the basic financial statements.
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY '
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS ,
FOR THE FISCAL YEAR ENDED JUNE 30,2005
Pleasant Hill BART
Capital Housing Debt '
Projects Projects Service
Fund Fund Fund
REVENUES
Property tax increment $ 2,369,279 $ 1,225,542 $ 2,532,891 ,
Intergovernmental 606,497 - -
Investment income 824,184 14,723 171,466
Other revenue 27,748 - -
Total revenues 3.827,708 1,240.265 2,704,357 ,
EXPENDITURES
Current:
General administration 442,874 64 132
Fiscal agreement pass-throughs 220,001 - -
County administration fee 50,181 12,545 -
Educational Revenue
Augmentation Fund payment 501,150 -
Redevelopment projects:
Capital projects 1,330,301 -
Housing projects - 653,150
Community activities 1,357,535 -
Economic development -
Planning activities 117,751 -
Debt service:
Principal repayment - 715,000 '
Interest - 2,787,737
Intergovernmental 635.734 -
Total expenditures 4,655,527 665,759 3,502,869
EXCESS(DEFICIENCY)OF REVENUES '
OVER(UNDER)EXPENDITURES (827,819) 574,506 (798,512)
OTHER FINANCING SOURCES(USES)
Transfers in - 980,181
Transfers out (980,181) -
Total other financing sources(uses) (980,181) - 980.181
NET CHANGE IN FUND BALANCES (1,808,000) 574,506 181,669 '
FUND BALANCES,BEGINNING OF YEAR 53,695.036 810,343 6,476,895
FUND BALANCES,END OF YEAR $ 51,887,036 $ 1.384,849 $ 6,658,564
See accompanying notes to the basic financial statements.
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Bay Point North Richmond
' Capital Housing Housing Other
Projects Projects Projects Governmental
Fund Fund Fund Funds Total
$ 1,246,327 $ 490,847 $ 297,676 $ 3,632,800 $ 11,795,362
735,441 1,341,938
45,961 12,729 24,088 336,806 1,429,957
1,123,223 - 40.444 7,969 1,199.384
' 2,415,511 503,576 362,208 4,713,016 15,766,641
I
265,851 1,128 923 621,041 1,332,013
'�. 441,059 - - 338,247 999,307
18,292 4,573 2,709 27,560 115,860
133,694 - - 171,508 806,352
1,138,426 311,599 714,090 3,494,416
Y'
9,000 - 368,423 1,030,573
35,715 I = 29,915 1,423,165
217,170 217,170
19,146 27,846 164,743
- 535,000 1,250,000
1,676,527 4,464,264
- - 635,734
' 2,061,183 317,300 1 3,632 4,727,327 15,933,597
354,328 186,276 358,576 (14,311) (166,956)
' - 529,986 1,510,167
(247,642) (137,400) (144,944) (1,510,167)
- (247,642) (137,400) 385,042
' 354,328 (61,366) 221,176 370,731 (166,956)
3,454,906 1,439,798 1,723,480 17,713,561 85,314,019
$ 3,809,234 $ 1,378,432 $ 1,944,656 $ 18,084,292 $ 85.147,063
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY ,
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE '
STATEMENT OF ACTIVITIES OF GOVERNMENTAL ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2005
Net change in fund balances-total governmental funds(page 14) $ (166,956) '
Amounts reported for governmental activities in the
statement of activities are different because: '
Revenue recognition of grants and loans receivable (256,364)
Proceeds and interest accrued on advances from Contra Costa County are deferred ,
until an undesignated time in the future and, therefore, do not represent revenueE
or expenditures on the modified accrual basis of accounting. Payment of bond
principal is an expenditure in the governmental funds, but the payment reduceE ,
long-term liabilities in the statement of net assets.
Accrued interest on Contra Costa County advances (122,910)
Proceeds from Contra Costa County advances (68,373)
Principal payments on tax allocation bonds 1,250,000
Amortization of deferred charges (22,737)
Amortization of discount on refunding (29,856) '
Change in net assets of governmental activities(page 9) $ 582,804
See accompanying notes to the basic financial statements. '
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CONTRA COSTA COUN'T'Y REDEVELOPMENT AGENCY
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' STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
OAKLEY PRIVATE-PURPOSE TRUST FUND.
FOR THE FISCAL YEAR ENDED JUNE 30, 2005
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DEDUCTIONS
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Intergovernmental -payment to the Oakley Redevelopment Agency $ (3,319)
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NET ASSETS, BEGINNING OF YEAR 3,319
- NET ASSETS, END OF YEAR $ -
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See accompanying notes to the basic financial statements.
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements
For the Fiscal Year Ended June 30, 2005
(1) Reporting Entity
' The Contra Costa County Redevelopment Agency (Agency) was created on December 6, 1983, for
the purpose of redeveloping certain areas of Contra Costa County (County), designated as project
areas. Currently, the members of the County Board of Supervisors serve as the Agency directors.
iThe County and Agency entered into a joint exercise of powers agreement dated April 7, 1992
establishing the County of Contra Costa Public Financing Authority (Authority). The Authority is
also governed by the Board of Supervisors, and as such, is an integral part of the County and
Agency. Accordingly, all of thelAuthority's debt activity relating to the Agency is blended within
the accompanying basic financial statements. See the long-term liabilities note (Note 6) for tax
allocation bonds issued by the AuI thority.
The accompanying basic financial statements are included as a blended component unit in the
County's basic financial statements.
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The Agency is responsible for five project areas as of June 30, 2005, which are Pleasant Hill
r' BART, Bay Point, North Richmond, Rodeo and Montalvin Manor Project Areas. Effective July 1,
2000, the City of Oakley Redevelopment Agency assumed the rights, powers, responsibilities and
obligations of the Oakley Project Area; which was previously a project area managed by the
Agency. During fiscal year ended June 30, 2004, the City of Oakley Redevelopment Agency
(Oakley) defeased all Authority issued debt on behalf of the Oakley Project Area, thus, eliminating
the need for the private-purpose trust fund. As a result, the remaining assets of the private-purpose
trust fund were returned to Oakley during fiscal year ended June 30, 2005. The Agency has
' initiated efforts towards adopting a new project area in the unincorporated community of El
Sobrante, however, those activities have been temporarily suspended pending land use plan changes
for the community.
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' (2) Summary of Significant Accounting Policies
The significant accounting policies of the Agency used in preparation of the accompanying basic
financial statements are as follows:
(a) Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on the Agency's activities. The effect of interfund activity has
' been removed from these statements. The Agency is only engaged in governmental activities,
which normally are.supported by taxes and intergovernmental revenues.
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When both restricted and unrestricted net assets are available, unrestricted resources are used
only after the restricted resources are depleted.
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The statement of activities' demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable
with a specific function. Program revenues include grants that are restricted to meeting the
operational or capital requirements of a particular function. Taxes and other items not properly
included among program revenues are reported instead as general revenues.
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY 1
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2005 1
(b)Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide financial statements and the private-purpose trust fund are reported 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 cash flows. Incremental property taxes are recognized as revenues in the year for
which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements have been met.
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 if they
are collected within 60 days of the end of the current fiscal year. Incremental property taxes,
intergovernmental revenues and investment income associated with the current fiscal period are
all considered being susceptible to accrual and so have been recognized as revenues of the
current fiscal period. All other revenue items are considered to be measurable and available
only when the Agency receives cash. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. Interest on long-term obligations is generally recognized
when paid. However, where resources have been provided during the current year for payment '
of interest due early in the following year, the expenditure and related liability are accrued.
The Agency reports the following major governmental funds: '
Capital Projects Funds for the Pleasant Hill BART and Bay Point Project Areas —
These funds are used to account for financial resources designated for the acquisition or 1
construction of land and capital facilities or significant repairs or improvements thereto.
Housing Projects Funds for the Pleasant Hill BART, Bay Point and North Richmond
Project Areas — These funds are used to account for financial resources designated for '
increasing and improving the supply of housing for persons and families of low or
moderate income.
Pleasant Hill BART Debt Service Fund — This fund is used to account for the
accumulation of resources for, and the payment of long-term debt principal and interest.
The Oakley Private-Purpose Trust Fund (a Fiduciary Fund Type) is used to account for the ,
assets held by the Agency in a trustee capacity for the City of Oakley Redevelopment Agency.
All remaining funds have been transferred to the City of Oakley and, accordingly, the private- 1
purpose trust fund has been closed by Agency.
(c) Investments
The Agency records investment transactions on the trade date. Investments in nonparticipating
interest-earning investment contracts (guaranteed investment contracts) are reported at cost, and
all other investments are at fair value. Fair value is defined as the amount that the Agency 1
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.
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' CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the Basic Financial Statement's (Continued)
' For the Fiscal Year Ended June 30, 2005
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(d) Notes Receivable
' For the purposes of the fund financial statements, expenditures related to long-term notes
arising from housing programs are charged to operations upon funding' and the notes are
recorded with an offset to a deferred revenue account. For purposes of the government-wide
' financial statements, long-term notes are not offset by deferred revenue.
(e) Land Held for Resale
' Land acquired by the Agency for future sale is capitalized in the government-wide financial
statements and the fund financial statements. Such land is carried at the lower of cost or
estimated net realizable value. Land held for resale recorded in the fund financial statements is
' offset by a reservation of fund balance to indicate that the assets do not constitute available
spendable resources.
Capital Assets
Capital assets are recorded at historical cost. Capital expenditures for certain projects,
including acquisition of real property, site clearance and project improvements, are charged to
expenditures when incurred and only capitalized in the government-wide financial statements
when the Agency.itself will own and maintain the assets acquired or constructed. As of June
30, 2005, the Agency's capital assets consist of land valued at $87,878 located in the North
' Richmond project area. There were no land additions or reductions during the current year.
(g) Property Tax Increment
California Redevelopment Law provides a means for financing and refinancing redevelopment
projects based upon the allocation of taxes collected within a project area. The assessed
valuation of a project areal prior to adoption of the redevelopment plan, or base roll, is
' established and, except for any period during which the assessed valuation drops below the base
roll, the taxing authorities thereafter receive the taxes produced by the levy of the current tax
rate upon the base roll. Property taxes collected upon an increase in assessed valuation over the
' base roll are called tax increments. Each year the redevelopment project area receives this .
incremental amount. In some project areas the Agency has elected to pass-through a portion of
its annual tax increment to various special districts under agreements with those districts, while
in one project area, Montalvin Manor Project Area, the State law provides for a formula pass-
through to all taxing authorities. The annual tax increment may be pledged by a redevelopment
agency for the repayment of indebtedness incurred in financing or refinancing the project area.
Incremental property taxes are recognized as revenue when claimed and available from local
' taxing authorities. Contra Costa County assesses, collects and apportions property taxes as
follows:
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' Secured Unsecured
Lien dates January 1 January 1
Levy dates January 1 January 1
Due dates (delinquent after) 50% on November 1 January 1
(December 10) (August 31)
50% on February 1
' (April 10)
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY '
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2005 '
Secured taxes are secured by liens on the property being taxed. The term "unsecured" refers to taxes
on personal property other than land and buildings. Supplemental property taxes are levied based on '
changes in assessed values between the date of real property sales and construction and the next normal
assessment date.
(h) Restricted Net Assets
Net assets, presented in the government-wide financial statements, should be reported as
restricted when certain constraints are placed on net asset use. The purpose of the restrictions '
are as follows:
• Restrictions for debt service consist of funds held by the trustee for the repayment of '
debt principal and interest or as reserves.
• Restrictions for housing projects consist of amounts required to be used for housing
projects benefiting families with low and moderate income, as defined in the California '
Health and Safety Code.
• Restrictions for Programs with purpose restriction consists of developer fees collected
through the County's Child Care Facilities Ordinance for the purpose of creation or
expansion of child care services within the redevelopment project areas and consists of
a small landscaping program. '
(i) Use of Estimates
The preparation of basic financial statements in conformity with accounting principles generally '
accepted in the United States of America requires management to make certain estimates and
assumptions that affect certain reported amounts and.disclosures. Accordingly, actual results
may differ from those estimates. '
(j)Implementation of New Accounting Pronouncement
As of June 30, 2005, the Agency adopted the provisions of Governmental Accounting Standards '
Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosures — an amendment of
GASB Statement No. 3. The Statement modifies the custodial credit risk disclosures required
by GASB Statement No. 3, Deposits with Financial institutions, Investments (Including '
Repurchase Agreements), and Reverse Repurchase Agreements, and addresses deposit and
investment risks related to credit risk, concentration of credit risk, interest rate risk, and foreign
currency risk. The disclosure changes related to implementing this pronouncement are reflected '
in Note 3.
(3) Cash and Investments '
The Agency's cash and investments consist of the following at June 30, 2005:
Total '
Cash and investments (unrestricted) $ 18,614,747
Restricted cash and investments 67,500,798
Total cash and investments $ 86,115,545 '
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' CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2605
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As permitted by the Government Code, the Agency directs the County Treasurer to make specific
investments separate from the County lpool of investments. Statutes and bond indentures authorize the
Agency to invest in the State Treasurer's Local Agency Investment Fund (LAIF); obligations of the
U.S. Treasury or its agencies; neg6tiable certificates of deposit; bankers acceptances; commercial
paper; mutual funds invested in U.S. Government securities; and investment agreements in form and
' substance approved by the Trustee (including certain guaranteed investment contracts).
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Cash and investments under the County Treasurer's control, including the cash pool, are subject to
' regulatory oversight by the Treasury Oversight Committee, as required by the California
Government Code Section 271341. The fair value of the Agency's position in the cash pool is the
same as the value of the cash pool shares.
' The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board
consists of five members as designated by State Statute. The value of the pool shares in LAIF that
may be withdrawn is determined Ion the amortized cost basis, which is different from the fair value
of the Agency's position in the pool. As of June 30, 2005, the Agency's proportionate share of
structured notes and asset-backed securities held by the LAIF was $521,772 or 2.406% of the
Agency's investment in LAIF. Information is not available on whether the various mutual funds in
which the Agency has invested, used, held, or wrote derivative financial products during the year
ended June 30, 2005. .
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Custodial Credit Risk I.
The amounts placed on deposit with banks were covered by federal depository insurance.
Accordingly, there is no exposure to custodial credit risk as of and for the year ended June 30,
2005. There were no investments held by the Agency that were subject to custodial credit risk.
Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
' the investment. This risk is measured by the assignment of a rating by nationally recognized
statistical rating organization. lThe Agency has mitigated this risk by placing most of its
investments in an external investment pool. A summary of the Agency's credit ratings is as
follows:
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Type of Investment Credit Rating
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' Guaranteed investment contracts Unrated
Mutual funds Aaa/AAAm
California Asset Management Program Unrated
County Treasurer's cash pool Unrated
' State Treasurer's Local Agency Investment Fund Unrated
' Concentration of Credit Risk
Concentration of credit risk is the risk that the failure of any one issuer would place undue financial
burden on the Agency. This risk is addressed'by disclosing by amount and by issuer investments in
' any one issuer that represent 5 .percent or more of total investments of the Agency. Investments
issued by or explicitly guaranteed by the U.S. Government and investments in mutual funds,
external investment pools, and other pooled investments are exempt from this disclosure
' requirement, as they.are normally diversified themselves. Accordingly, the Agency is not exposed
to concentration of credit risk asl of and for the year ended June 30, 2005.
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY '
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2005 '
Interest Rate Risk
Interest rate risk is the risk that changes in market rates will adversely affect the fair market value '
of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of
its fair value to changes in the market rates. At June 30, 2005, the fair values of the Agency's
investments are as follows:
Investment Maturities(or weighted average maturities*)
Under 31-180 23-24 Total Fair
Type of Investment 30 Days Days Years Value ,
Guaranteed investment contracts $ - $ - $ 3,431,878 $ 3,431,878
Mutual funds* 52,188,072 - - 52,188,072
California Asset Management Program* 7,636,068 - 7,636,068 '
County Treasurer's cash pool* - 1,149,505 1,149,505
State Treasurer's LAIF* 21,686,305 21.686,305
Total investments $ 59,824.140 $ 22.835,810 $ 3,431,878 86,091,828
Deposits with banks 23,717
Total cash and investments $ 86,115,545
Under the provisions of the 1999 Series A Tax Allocation Bond (1999 Bonds) indentures, the '
proceeds deposited into the reserve funds were invested in guaranteed investment contracts that
have a maturity date equivalent to the last payment owed on the 1999 bonds. These reserve '
accounts are reported in debt service funds. As of June 30, 2005, the amount of reserve funds held
by the trustee for the 1999 Bonds was $3,431,878.
Restricted Cash and Investments '
Under the provisions of the various tax allocation bond indentures, portions of the proceeds were
deposited in an amount required to be held in reserve accounts, in an amount to necessary to make
interest payments on escrowed bonds until the restriction was released, and in an amount required '
to be used for specified purposes. As of June 30, 2005, the amount held by the trustee in these
restrictive accounts was $67,500,798.
(4) Interfund Transactions ,
Interfund Receivables/Payables -For the year ended June 30, 2005, the composition of Interfund t
balances reported in the governmental funds, which represents short-term borrowings to cover cash
flow needs or amounts that were determined to be owed subsequent to year-end, were as follows:
Fund reporting receivable Fund reporting payable Amount '
Pleasant Hill BART Capital Projects Fund Bay Point Capital Projects Fund $ 14,450
Pleasant Hill BART Capital Projects Fund Other governmental funds 21,446
North Richmond Housing Projects Fund Bay Point Capital Projects Fund 10,222 '
Other governmental funds Pleasant Hill BART Capital Projects Fund 2,553
Total $48,671
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' CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2005
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Interfund Transfers — For the year ended June 30, 2005, transfers between individual funds were
as follows:
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Receiving Fund Disbursing Fund Transferred
' Pleasant Hill BART Debt Pleasant Hill BART Capital
Service Fund Projects Fund $ 980,181 A
Other governmental funds Bay Point Housing Capital
' Projects Fund 247,642 B
Other governmental funds North Richmond Housing Projects
Fund 137,400 B
Other governmental funds Other governmental funds 144,944 B
Total $ 1,510,167
1 A. During the year ended June 30, 2005, the escrow funds related to the 2003 Series A Tax Allocationi Bonds
were released from restriction as the Pleasant Hill BART Project Area successfully amended its tax increment
limit and bond limit. Accordingly, a portion of the escrow funds ($980,181) were transferred to a reserve
account held by the trustee,as security for the bondholders.
B. Reimbursement of debt service by the housing project funds related to the bond proceeds used fro projects
that benefit housing for families of low and moderate income.
(5) Notes Receivable "I
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A summary of notes receivable, by project, at June 30, 2005 is as follows:
' Coggins Square Apartments $ 350,000
RCD/O'Brien Group 2,252,462
Alves Lane Partners 439,999
Parkway Estates 733,000
North Richmond Senior Housing Project 581,660
Rodeo Facade Rehabilitation Loan Program 33,127
' Rodeo Senior Housing Project 75,000
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$4,465,248
At June 30, 2005, the Agency Ihas recorded $4,465,248 in deferred revenue to offset the notes
receivable balance. As the deferred revenue has been established to defer assets that are not
considered available financial resources, the deferred revenue has been removed from the
' government-wide financial statements and are included within the unrestricted net assets balance.
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY '
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2005 t
.(6) Long-Term Liabilities
The following is a summary of changes to long-term liabilities for the year ended June 30, '
2005:
Amount Due ,
Balance Balance Within One
July 1,2004 Additions Retirements June 30,2005 Year
Tax allocation bonds: '
1995 Series A $ 1,440,000 $ - $ 35,000 $ 1,405,000 $ 35,000
1995 Series B 2,425,000 - 55,000 2,370,000 55,000
1999 Series A 36,640,000 - 610,000 35,030,000 630,000
2003 Series A 43,345,000 - 525,000 42,820,000 375,000 '
2003 Series B 2,445,000 - 25,000 2,420,000 15,000
Total tax allocation bonds 84,295,000 - 1,250,000 83,045,000 1,110,000
Other debt items: '
Original issue discount (601,996) - (20,699) (581,297) (20,699)
Deferred amount on
refunding (165,589) (9,157) (156,432) (9,157)
Total other debt items (767,585) - (29,856) (737,729) (29,856) '
Advances from the County:
Pleasant Hill BART Housing
Projects Fund 3,994,649 63,810 - 4,058,459 -
North Richmond Housing '
Projects Fund 640,948 15,000 - 655,948
North Richmond Capital
Projects Fund 872,332 24,009 - 896,341
North Richmond Debt '
Service Fund 94,456 2,391 - 96,847
Rodeo Capital Project Fund - 68,373 - 68,373
Montalvin Manor Capital
Projects Fund 209,470 7,415 - 216,885
El Sobrante Capital Projects
Fund 290,530 10,285 - 300,815 -
Total advances from the
County 6,102,385 191,283 - 6,293,668
Total long-term liabilities $89,629,800 $ 191,283 $ 1,220,144 $88,600,939 $ 1,080,144
Tax Allocation Bonds
The Agency's tax allocation bonds at June 30, 2005 follow (amounts in thousands): '
Annual Original ,
Interest Principal Issue Outstanding at
Maturity Rates Installments Amount June 30,2005
1995 Series A 2002-2025 3.90-6.00% $20- 115 $1,645 $1,405
1995 Series B 2002-2025 4.50-7.25% 40-200 2,735 2,370 '
1999 Series A 2002-2028 4.00-5.13% 450-3,250 . 44,615 34,030
2003 Series A 2004-2033 3.00-5.625% 375- 19,700 43,345 42,820
2003 Series B 2004-2033 3.00-5.625% 15- 1,940 2,445 2,420
Total $83,045 '
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' CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2005
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The Authority, on behalf of the Agency, issued the 1992 Series A, 1995 Series B, 1999 Series A,
2003 Series A, and 2003 Series B Tax Allocation Bonds. The Association of Bay Area
' Governments, on behalf of the Agency, issued the 1995 Series A Tax Allocation Bonds. The tax
allocation bonds are used to finance various redevelopment and housing projects of the Agency.
Debt service payments are made from property tax increment.
1 Future bond debt service requirements on tax allocation bonds are as follows:
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' Year ended June 30: Principal Interest
2006 $ 1,110,000 $ 4,436,118
2007 I 1,395,000 4,386,590
2008 1,450,000 4,329,281
' 2009 1,505,000 4,266,772
2010 1,575,000 4,198,704
2011 -2015 9,075,000 19,733,063
2016-2020 11,705,000 17,009,710
2021 -2025 15,290,000 13,312,546
2026-2030 19,900,000 7,948,026
2031 -2035 1 20,040,000 1,457,933
Total $83,045,000 $81,078,743
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Advances from the County
;,. Of the outstanding advance of $4,058,459 received by the Pleasant Hill BART Housing Projects
Fund, $4,007,558 was received for the purchase of land and subsequent repayment of a note
payable related to that land and $508,901 was. received as reimbursement for housing site
acquisition and preparation costs! The advances bear interest at 3% per annum. Interest as reported
in the government-wide financial,statements was $63,810 for the current year. Repayment of these
advances will be made when sufficient tax increment funds become available.
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The outstanding advance of$655,948 received by the North Richmond Housing Projects 'Fund was
originally made for specific project costs related to.the North Richmond Senior Housing Projects.
The advance bears interest at Al per annum. Interest as reported in the government-wide financial
statements was $15,000 for the' current year. Repayment of this advance will be made when
sufficient tax increment funds become available.
' The outstanding advance of$896,341 received by the North Richmond Capital Projects Fund was
originally made for specific project costs related to the North Richmond Commercial Center
Project. The advance bears interest at 3% per annum. Interest as reported in the government-wide
'. financial statements was $24,009 for the current year. Repayment of this advance will be made
when sufficient tax increment funds become available.
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The outstanding advance of $ 96,847 received by the North Richmond Debt Service Fund was
originally made to finance operations and improvements not associated with specific projects. The
advance bears interest at 3% per annum. Interest as reported on the government-wide financial
I statements was $2,391 for the I current year. Repayment of these advances will be made when
sufficient tax increment funds become available.
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY '
Notes to the Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2005 '
The outstanding advance of$68,373 received by the Rodeo Capital Projects Fund was used towards
the acquisition of property in the Town Square Mixed Use project. The advance bears no interest. '
Repayment will be made when sufficient tax increment funds become available.
The outstanding advance of$216,885 received by the Montalvin Manor Capital Projects Fund was
originally made to finance the redevelopment plan adoption. The advance bears interest at 1.77% '
per annum. Interest as reported on the government-wide financial statements was $7,415 for the
current year. Repayment will be made when sufficient tax increment funds become available.
The outstanding advance of$300,815 received by the El Sobrante Capital Projects Fund was made ,
to finance the redevelopment plan adoption. The advance bears interest at 1.77% per annum.
Interest as reported on the government-wide financial statements was $10,285 for the current year. ,
The advance will be due and payable only if the Redevelopment Plan for the El Sobrante Project
Area is adopted by the Contra Costa County Board of Supervisors, otherwise, it will be forgiven.
The pledge of tax increment funds to the County is subordinated to any such pledge of funds that '
the Agency makes in connection with the sale of bonds, notes or similar Agency obligations.
(7) Relationship with Contra Costa County '
The Agency and the County are closely related but separate legal entities. The Agency does not
have any employees and does not have facilities separate from the County. Therefore, a portion of '
the Agency's expenditures represents services provided to the Agency by the County. In addition,
the County performs project improvements and provides administrative services for projects. For
the year ended June 30, 2005, the Agency paid approximately $3,383,408 during the year and owed '
$1,198,984 at the end of the year to the County for project improvements and administrative
services incurred.
(8) Fiscal Agreement Pass-throughs '
The Agency has property tax pass-through agreements with various taxing agencies in existence
when the Agency was formed. Under these agreements, the Agency passes through to these various
taxing agencies, a portion of the property tax increments it would otherwise have received. In
fiscal year 2004/05, the County passed through property tax increments totaling $999,307 directly
to these agencies. '
(9) Contingencies
The Agency 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 Agency is included as part of the
County's self-insurance program for public liability. As such, the Agency is obligated to reimburse
the County for the unfavorable outcome of any claims paid on behalf of the Agency. At June 30, '
2005, there are no significant claims outstanding in the self-insurance program for which the
Agency is obligated. There have been no claims during the past three years that have exceeded
excess insurance coverage. '
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' CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
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Notes to the Basic Financial Statements (Continued)
' For the Fiscal Year Ended June 30, 2005
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(10) Commitments -Educational Revenue Augmentation Fund
' On August 5, 2004, SB 1096 was signed into law requiring redevelopment agencies statewide to
shift for two years (2004-2006) the amount of$250 million in property tax increment revenues to
the State of California Educational Revenue Augmentation Fund as a way to reduce the State's
' 2004-2006 budget deficit. The Agency's share of this revenue shift is $806,352 for each of the
two years. Accordingly, a payment was made on May 10, 2005 and the next payment will be
made on May 10, 2006.
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1 CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
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COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
' OTHER GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30,2005
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Bay Point North Richmond
' Debt Capital Debt
Service Projects Service
Fund Fund Fund
REVENUES
Property tax increment I $ 717,059 $ 721,064 $ 469,639
' Intergovernmental -27 509,186 -
Investment income 60,8 82.015 33,874
Other revenue
Total revenues 777,886 1,312,265 503,513
' EXPENDITURES
Current:
General administration 159 264,572 196
Fiscal agreement pass-throughs - - -
' County administration fee 10,835
Educational Revenue
Augmentation Fund payment 80,771
Redevelopment projects:
Capital projects 447,690
' Housing projects 368,423
Community activities 20,528
Economic activities 44,910
Planning activities 17,846 -
Debt service:
Principal repayment 240,000 155,000
Interest 795,603 492,449
Costs of issuance
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' Total expenditures 1,035,762 1,255,575 647.645
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (257,876) 56,690 (144,132)
OTHER FINANCING SOURCES(USES)
Proceeds from tax allocation bonds -
'� Discount on tax allocation bonds -
Transfers in 247,642 137,400
Transfers out
Total other financing sources(uses) 247,642 - 137,400
CHANGE IN FUND BALANCES (10,234) 56,690 (6,732)
FUND BALANCES,BEGINNING OF YEAR 2,225,403 5,458,397 1,347,345
FUND BALANCES,END OF YEAR . $ 2,215,169 $ 5,515,087 $ 1,340,613
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Rodeo Montalvin Manor El Sobrante
Capital Housing Debt Capital Housing Capital ,
Projects Projects Service Projects Projects Projects
Fund Fund Fund Fund Fund Fund Total
S 885.379 S 308.677 S 349.328 $ 145,323 $ 36,331 S - S 3,632,800
158,755 - - - - 67,500 735,441 '
114,350 24,852 20,888 - 336,806
7,969 - - 7,969
1.166,453 333,529 370,216 145.323 36.331 67,500 4,713.016
277,692 937 90 76,212 - 1,183 621,041 '
338,247 - - - - - 338,247
11,711 2,928 1,669 417 27,560 ,
90,737 - - - 171,508
263,635 2,765 714,090
- - 368.423 '
9,387 29,915
172,260 217,170
10,000 27,846
- 140,000 535,000 '
388,475 1,676,527
1,173,669 3,865 528,565 80,646 417 1.183 4,727,327
(7,216) 329,664 (158,349) 64,677 35,914 66,317 (14,311) '
144,944 529,986
(144,944) (144,944)
(144,944) 144,944 385.042
(7,216) 184,720 (13,405) 64,677 35,914 66,317 370,731 '
5,982,009 1,939,117 919,014 (35,494) - (122,230) 17,713,561
S 5.974,793 $ 2,123,837 $ 905,609 $ 29,183 S 35,914 $ (55,913) S 18,084,292
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CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
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COMBINING BALANCE SHEET
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FUNDS
JUNE 30,2005
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Bay Point Porth Richmond
' Debt Capital Debt
Service Projects Service
Fund Fund Fund
ASSETS
Cash and investments S 604,447 S 553,406 $ 384,296
' Interest receivable 23,353 9,894 12,406
Taxes receivable 202,512
Accounts receivable 92,012
Due from Contra Costa County - 3,460 -
Due from other funds
' Restricted cash and investments 1,918,580 4,793,773 1.148,753
Notes receivable
Land held for resale
Total assets S 2,546,380 S 5,655,057 $ 1,545,455
LIABILITIES
Accounts payable and
accrued liabilities $ $ 105,355 S
Due to Contra Costa County 70 25,142 88
Due to other funds 9,473 -
•, Accrued interest 331,141 - 204,754
Deposits payable
Deferred revenue
Total liabilities 331.211 139,970 204,842
rFUND BALANCES
Reserved for:
Encumbrances I - 117,187 -
Land held for resale -
Bond proceeds with purpose restriction - 4,793,773 -
Landscaping funds
Housing projects
Debt service 2,215,169 1,340.613
Unreserved:
' Capital project funds - 604,127 -
Total fund balances 2,215,169 5.515,087 1,340,613
Total liabilities and fund balances $1 2,546,380 $ 5,655.057 S 1,545,455 . .
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Rodeo Monlalvin Manor EI Sobrante
Capital (lousing Debt Capital Housing Capital '
Projects Projects Service Projects Projects Projects
Fund Fund Fund Fund Fund Fund Total
$ 585,335 S 686,572 S 318,211 $ 98,531 S 31,729 S 61,834 S 3,324,361
9,779 2,280 7,425 - - - 65,137 ,
142,446 35,612 - 16,856 4.214 401,640
563 - - - 92,575
3,420 34 - 6.914
- - 2,553 2,553
5,050,986 1,211,432 741,731 - 14,865,255 '
33,127 75,000 108,127
272,735 188,183 460.918
$ 6,098,391 $ 2,199,079 $ 1,067,367 S 115,421 $ 35,943 $ 64,387 $ 19,327,480
S 1,624 S - $ - S S - S - $ 106,979
78,974 242 66 83,738 29 120,300 308,649
9,473 - - 2,500 - 21,446
- 161,692 - 697,587 '
400 - - 400
33,127 75,000 108,127
123,598 75,242 161,758 86,238 29 120,300 1,243,188
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1,075,810 - - 15,000 - 1,207,997
272,735 188,183 - - - - 460,918
5,050.986 1,211,432 11,056,191 '
5,022 - - 5,022
- 724,222 - 35,914 760,136
- 905,609 - 4,461,391
(429,760) 14,183 (55,913) 132,637 '
5,974,793 2,123,837 905,609 29,183 35,914 (55,913) 18,084,292
S 6,098,391 $ 2,199,079 $ 1,067,367 S 115,421 $ 35,943 S 64,387 $ 19,327,480
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C&L
Caporicci&Larson
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER FINANCIAL REPORTING BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENT
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors I
' Contra Costa County Redevelopment Agency
Martinez,California
We have audited the financial statements of the governmental activities, each major fund and the
aggregate remaining fund information of the Contra Costa County Redevelopment Agency (the
Agency), a component unit of the County of Contra Costa, California, as of and for the fiscal year
ended June 30, 2005, which collectively comprise the Agency's basic financial statements and have
issued our report thereon dated November 30, 2005. We conducted our audit in accordance with
generally accepted auditing standards lin 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 Agency's basic financial statements are
free of material misstatement, we preformed tests of its compliance with certain provisions of laws,
.regulations,contracts and grants,noncompliance with which could have a direct and material effect on
the determination of basic financial statement amounts. Such provisions include those provisions laws
and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies,
issued by the State Controller and is interpreted in the Suggested Auditing Procedures for Accomplishing
1 Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and
Auditing Committee of the California Society of Certified Public Accountants. 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.
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Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Agency'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
i control components does not reduce to a relatively low level the risk that 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 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 members of the Agency's Board of
Directors, management, and the State Controller and is not intended to be and should not be used by
anyone other than these specified parties.
e" -�"`"
Oakland,California
' November 30,2005
Toll Free 11h:(877)862-2200 Toll Free Fax:(866)436-0927
Oakland Orange County Sacramento San Diego
' 180 Grand Ave.,Suite 1365 3184-D Airway Avenue 777 Campus Commons Rd.,Suite 200 4858 Mercury-,Suite 105
Oakland,California 94612 Costa Mesa,California 92626 Sacramento,California 95825 San Diego.California 92111
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COUNTY OF CONTRA COSTA
1 PUBLIC FACILITIES CORPORATION
(A component unit of the
1 County of Contra Costa, California)
Basic Financial Statements,
Independent Auditors' Report and
1 Management's Discussion and Analysis
Year Ended June 30, 2005
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i' COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION
Year Ended June 30, 2005
' TABLE OF CONTENTS
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Page(s)
Independent Auditors Report 1 - 2
Managements Discussion and Analysis (Required Supplementary Information) ........3 - 4
' Basic Financial Statements:
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Statement of Net Assets ........................................................................................................5
Statement of Revenues, Expenses and Changes in Net Assets .............................................6
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Statement of Cash Flows ......................................................................................................7
Notes to the Basic Financial Statements ........................................................................8 - 13
Supplementary Information:
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iCombining Schedule of Net Assets by Bond Program ......................................................14
Combining Schedule of Revenues,(Expenses and Changes in
' Net Assets by Bond Program ........................................................................................15
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Combining Schedule of Cash Flows by Bond Program ....................................................16
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C&L
r Caporicci&Larson
Certified Public Accountants
INDEPENDENT AUDITORS"REPORT
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Board of Directors of the I
Contra Costa County Pubic Facilities Corporation
Martinez,California
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We have audited the accompanying financial statements of the business-type activities of the County of
' Contra Costa Public Facilities Corporation (Corporation), a component unit of the County of Contra
Costa, California, as of and for the year ended June 30, 2005, which collectively comprise the
Corporation's basic financial statements as listed in the table of contents. These financial statements are
the responsibility of the Corporation'sI 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 the United States.
rThose standards require that we planl 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 thel overall basic financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
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In our opinion, the basic financial statements referred to above present fairly, in all material respects,
r the financial position of the business-type activities of the Corporation as of June 30, 2005, and the
respective changes in financial positiori for the year then ended in conformity with generally accepted
accounting principles in the United States.
' As described in Note 2 to the basic financial statements, the Corporation adopted Government
Accounting Standards Board No. 40, I Deposit and Investment Risk Disclosures, (an anwndinent of GASB
Statement No. 3).
The accompanying Required Supplementary Information, such as Management's Discussion and
r 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.
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' Our 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
1 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.
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Oakland,California
r November 30,2005
Toll Free Ph:(877)862-2200 'lull Free Fax:(866)436-0927
Oakland Orange County Sacramento San Diego
r 180 Grand Ave.,Suite 1365 3184-D Airway Avenue 777 Campus Commons Rd.,Suite 200 4858 Mercury,Suite 105
oakland,California 94612 Costa Mesa,California 92626 Sacramento,California 95825 San Diego,California 92111
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COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION
Management's Discussion and.Analysis
Year Ended June 30, 2005
The following discussion and analysis of the County of Contra Costa Public Facilities
Corporation ("Corporation") financial performance provides an overview of its financial
activities for the year ended June 30, 2005. The Contra Costa County ("County")
Auditor-Controller's Office prepared this discussion and analysis. Please read it in
conjunction with the accompanying basic financial statements of the Corporation.
Financial Highlights I
• The assets of the Corporation exceeded its liabilities by$11,450,343 at June 30, 2005.
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• Net assets increased by$74,942 during the year ended June 30, 2005.
1 Basic Financial Statements 1
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1 The basic financial statements consist of the Corporation's Enterprise Fund, which is
more fully described in the notes to the basic financial statements. The Enterprise Fund
is used to account for the financing of public capital improvements provided by the
Corporation to the County's governmental and proprietary operations. The financial
statements provide both long- and short-term financial information and information
about cash flows. Under Governmental Accounting Standards Board Statement No. 34,
' the Corporation's financial statements are presented as follows:
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• Statement of net assets;
' • Statement of revenues, expenses and change in net assets; and
• Statement of cash flows.
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' Over time, net assets may serve as a useful indicator of whether a government's
financial condition is improving 1 or deteriorating. The following table presents the
' Corporation's net assets as of June 130, 2005 and 2004 (amounts in thousands):
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1 June 30, June 30, Change Change
2005 2004 ($) (%)
Current assets 1 $17,086 $16,805 $ 281 1.7%
Non-current assets 1 118,505 123,020 (4,515) 3.7
Total assets 1 135,591 139,825 (4,234) 3.0
Current liabilities 1 5,635 5,429 206 3.8
Noncurrent liabilities 118,505 123,020 (4,515) (3-6)
Total liabilities 1 124,140 128,449 (4,309) 3.4
Net assets restricted for debt service I $11.450 11 375 $ 75 :7
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The decrease in non-current assets is the reduction of the Corporation's net investment
in leases resulting from lease payments received from the County and the Board of
Education. The decrease in non-current liabilities is due to the payment of certificates of
participation principal.
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COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION '
Management's Discussion and Analysis (Continued)
Year Ended June 30, 2005
The following table presents the Corporation's change in net assets for the year ended '
June 30, 2005 (amounts in thousands):
June 30, June 30, Change Change '
2005 2004 ($) (%)
Operating revenue $6,215 $6,436 ($221) (3.4%)
Operating expense (2) _(L6) 84 97.7
Operating income 6,213 6,350 L1371 (2.2)
Non-operating revenues(expenses):
Investment income 679 705 (26) (3.7) '
Interest expense (6,817) (7,035) 218 3_1
Net non-operating expenses6 138 (6,330) 192 3_0
Change in net assets 75 20 55 275.0
Net assets,beginning of year 11,375 11,355 20 .2 '
Net assets,end of year 11 450 11 375 75 .7%
The decreases in operating revenue and interest expense are due to the reduction in the
outstanding principal of certificates of participation and investment in leases.
Request for Information
This financial report is designed to provide our citizens, taxpayers, customers, investors
.and creditors with a general overview of the Corporation's finances and to demonstrate '
the Corporation'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.
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CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION
Statement of Net Assets
I.. .• June 30, 2005
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Assets
Current Assets:
Cash and Cash Equivalents $ 802,279
Restricted Investments 10,548,034
Interest Receivable - Investments 100,030
Interest Recevable - Investments in Leases 1,120,263
Net Investment in Leases - Current Portion 4,515,000
Total Current Assets 17,085,606
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Noncurrent Assets -Net Investment in
' Leases -Non-current Portion 118,505,000
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Total Assets 135,590,606
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Liabilities
Current Liabilities:
Interest Payable 1,120,263
Long-term Debt - Due Within One Year 4,515,000
Total Current Liabilities 5,635,263
Long-term Debt - Due in More Than One Year 118,505,000
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' Total Liabilities 124,140,263
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Net Assets - Restricted for Debt Service $ 11,450,343
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See notes to basic financial.statements.
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CONTRA COSTA COUNTY PUBLIC FACILITIES.CORPORATION '
Statement of Revenues, Expenses and Changes in Net Assets '
Year Ended June 30, 2005
Operating Revenue
Interest Earned on Leases 6,214,565 '
Operating Expenses '
Administration Fee (2,226)
Operating Income 6,212,339 '
Non-operating Revenues (Expenses)
Interest Expense (6,816,799) '
Investment Income 679,402
Net Non-operating Revenues (Expenses) (6,137,397)
Change in Net Assets 74,942 '
Total Net Assets, July 1, 2004 11,375,401
Total Net Assets, June 30, 2005 11,450,343
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See notes to basic financial statements.
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CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION
Statement of Cash Flows
Year Ended June 30, 2005
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Cash Flows From Operating Activities 1
Receipts from lessee,principal 1 $ 4,290,000
' Receipts from lessee,interest 6,233,610
Payments for administrative fees 1 (2,226)
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Net cash provided by operating activities 10,521,384
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Cash Flows From Capital And Related 1
i, Financing Activities
Payments for debt principal 1 (4,290,000)
Payments for debt interest 1 (6,835,844)
Net cash used by capital and related financing activities (11,125,844)
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Cash Flows From Investing Activities 1
Receipts from earnings on investments and cash equivalents 613,986
:. Maturities of investments 42,422,843
Purchases of investments 1 (42,259,790)
' Net cash provided by investing activities 777,039
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' Net Increase In Cash And Cash Equivalents 172,579
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Cash And Cash Equivalents,July 1, 2004 1 629,700
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Cash And Cash Equivalents,June 30, 2005 $ 802,279
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RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATINGIACTIVITIES:
Operating income 1 $ 6,212,339
Adjustments to reconcile operating income to net cash
provided by operating activities: I
Decrease in net investment in leases 4,290,000
Decrease in interest receivable investment in leases 19,045
Net cash provided by operating activities $ 10,521,384
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' COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION
Notes Ito Basic Financial Statements
Year Ended June 30, 2005
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NOTE 1 - REPORTING ENTITY
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' The County of Contra.Costa Public)Facilities Corporation ("Corporation") is a joint powers
Corporation, organized in November 1981 as a non-profit, public benefit corporation. Its
purpose is to provide financial assistance to the County of Contra Costa ("County"),
' California and the Contra Costa County Board of Education by financing the.acquisition,
construction, improvement and remodeling of public buildings and facilities. The
Corporation is exempt from federal and state taxation.
The basic financial statements present only the Corporation and are not intended to present
the financial position and changes in financial position and cash flows of the County. The
' board of directors of the Corporation is composed of five individuals who serve until
resignation, removal or death; vacancies are filled by vote of the remaining board members.
The Corporation is an integral part iof the County, and accordingly, the accompanying basic
financial statements are blended as a component unit within the basic financial statements
prepared by the County.
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Administrative expenses incurred in the day-to-day operations of the Corporation, such as
personnel costs, office expenses and management, are provided by the County and are not
included in the accompanying basic financial statements. Such expenses are considered
insignificant to the Corporation's operations.
The Corporation obtains financing Ifor the County-sponsored projects using lease agreements
signed by the County as collateral. The agreements provide sufficient resources to repay the
debt incurred by the Corporation to finance projects.
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' NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
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' Basis of Presentation and Accounting
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All activities of the Corporation are accounted for within a single enterprise fund. The
County's and Board of Education's lease payments to the Corporation secure the debt issued
by the Corporation. The accounting and financial reporting treatment applied to the
Corporation is determined by its measurement focus. The transactions of the Corporation
' are accounted for using the flow of economic resources measurement focus. With this
measurement focus, all assets ands liabilities associated with the operations are included on
the statement of net assets.
Enterprise funds distinguish operating revenues and expenses from non-operating 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
' Corporation is the collection of lease interest revenue from the County. Operating expenses
for the Corporation include the trustee fees. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses.
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COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION '
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
NOTE 2 - 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
those standards do not conflict with or contradict guidance of the Governmental Accounting
Standards Board. 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 Corporation has elected not to follow subsequent private-sector guidance.
Cash and Cash Equivalents
Cash and cash equivalents include money market mutual funds and all highly liquid
investments with original purchase maturities of three months or less.
Investment Valuation
Investments are reported at fair value. Fair value is defined as the amount that the.
Corporation could reasonably expect to receive in a current sale between a willing buyer and ,
seller and is generally measured by quoted market prices. Investment transactions are
recorded on the trade date.
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 Board of Education to the Corporation for the
use of equipment and facilities acquired or constructed with bond proceeds issued by the
Corporation. In the lease agreements relating to the bonds, the County and the Board of '
Education have covenanted to make rental payments in amounts corresponding to the
Corporation'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 Board of ,
Education. To the extent that funds are unexpended upon completion of all projects, such
funds will be used to retire outstanding debt; rental payments required from the County and
the Board of Education will be reduced accordingly. t
Net Assets '
Net assets comprise various net earnings from operating and nonoperating revenues and
expenses. Net assets are classified as restricted for debt service. '
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COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
1 NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
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' Estimates
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The preparation of basic financial statements in conformity with generally accepted
' accounting principles requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results may differ from those
estimates. I
Implementation of New Accounting Pronouncement
As of June 30, 2005, the Corporation adopted the provisions of Governmental Accounting
Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosures — an
amendment of GASB Statement No. 3. The Statement modifies the custodial credit risk
disclosures required by GASB Statement No. 3, Deposits with Financial institutions,
Investments (Including Repurchase Agreements), and Reverse Repurchase Agreements, and
addresses deposit and investment risks related to credit risk, concentration of credit risk,
interest rate risk, and foreign currency risk. The disclosure changes related to implementing
this pronouncement are reflected in Note 3.
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NOTE 3—CASH AND INVESTMENTS
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The following table summarizes the,fair value of the Corporation's cash and investments at
June 30, 2005:
Investments—commercial paper $10,548,034
' Cash equivalents - mutual funds 802,279
Total cash and investments $11,350,313
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The Corporation's investments are held by trustees in accordance with provisions of the
Corporation's bond trust agreements. Funds held by the trustees have been invested only as
permitted by the California Government Code or applicable Corporation resolution or bond
' indenture. The trust indentures place no limit on the amount the Corporation may invest in
one issuer.
The commercial paper issued by (General Electric Corp. matures November 1, 2005 and
represents 93% of the Corporation's total cash and investments .at June 30, 2005. This
commercial paper is rated Al+/Pll+. The mutual funds are available to the Corporation at
any time and are rated AAA. i
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Investments have been classified as restricted on the statement of net assets because their use
is limited by bond covenants.
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COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION '
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
NOTE 4- NET INVESTMENT IN LEASES 1
The Corporation leases buildings currently in use to the County and the Board of ,
Education under lease agreements. Lease terms are for six to thirty years and lease
payments to the Corporation are structured so as to be sufficient in amount and timing to
repay the related debt when due. During the year ended June 30, 2005, the Corporation '
received $10,523,610 in lease payments from the County and the Board of Education.
The Corporation's net investment in leases at June 30, 2005 is as follows: 1
Year ending June 30:
2006 $11,116,090 '
2007 11,097,138
2008 11,081,879
2009 11,105,661
2010 10,612,778
2011 -2015 51,057,494
2016 -2020 52,682,516
2021 -2023 31,438,600 1
Total future minimum lease payments
to be received 190,192,156 ,
Less unearned interest income (67,l 72,156)
Net investment in lease 123,020,000
Less current portion (4.515.000)
Long-term portion $118,505,000 1
NOTE 5 - LONG-TERM DEBT
Following is a summary of the Corporation's changes in long-term debt during the year
ended June 30, 2005:
Current '
Balance Balance Portion
July 1,2004 Retirements June 30,2005 June 30,2005 '
Certificates of Participation:
1997 Merrithew Hospital Replacement $ 125,250,000 $(3,925,000) $121,325,000 $4,130,000
1992 Board of Education 2,060,000 (365,000) 1,695,000 385,000 '
Total $ 127,310,000 $(4,290,000) $123,020,000 $4,515,000
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' COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
NOTE 5 -LONG-TERM DEBT (Continued)
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' Long-term debt at June 30, 2005 consisted of the following:
Annual
Principal Original
Interest Installments Issue
Maturity Rates (in thousands) Amount
Certificates of Participation:
1997 Merrithew Hospital Replacement. 2022 5.1-6.0% $3,925 - 10,185 $ 145,340,000
1992 Board of Education 2008 6.1-6.3 365- 1,695 4,950,000
,1 Future debt service requirements for the outstanding certificates of participation, including
sinking fund payments, are as follows:
1992 Board of Education 1997 Merrithew Hospital Replacement
Principal I Interest Principal Interest
Year ending June 30: 1
2006 $ 385,000 $94,658 $4,130,000 $6,506,432
2007 410,0001 69,615 4,350,000 6,267,523
2008 430,000, 43,155 4,610,000 5,998,724
2009 470,0001 14,805 4,885,000 5,735,856
2010 5,135,000 5,477,778
2011-2015 30,080,000 20,977,494
' 2016-2020 39,145,000 13,537,516
2021-2022 28,990,000 2,448,600
Total Requirement $1,695,0001 $222,233 $121,325,000 $66,949,923
NOTE 6- RISK MANAGEMENT
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The Corporation 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 Corporation is
included as part of the County's self-insurance program for public liability. As such, the
Corporation is obligated to reimburse the County for the unfavorable outcome of any claims
paid on behalf of the Corporation. At June 30, 2005, there are no significant claims
outstanding in the self-insurance program for which the Corporation is obligated. There have
been no claims during the past 'three fiscal years that have exceeded excess insurance
coverage.
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NOTE 7—MAGEE PARK
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In May 1987, the County and thel Town of Danville each purchased an undivided one-half
0 interest in Magee Park under a joint powers agreement in the amount of$1,140,000. Upon
the close of escrow, title to the property was passed to the Corporation contingent on its
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COUNTY OF CONTRA COSTA PUBLIC FACILITIES CORPORATION ,
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
NOTE 7—MAGEE PARK(Continued) ,
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 8—ADVANCE REFUNDING OF DEBT '
In prior years, the Corporation defeased 1992 Consolidated Capital Facilities Project
Certificates of Participation by placing a portion of the proceeds of a new debt issuance into
an 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, 2005, $25,365,000 of ,
outstanding certificates of participation are considered defeased.
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CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION
Combining Schedule of Net Assets
I- June 30,2005
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1997
1 1992 Refunding
Certificates of Certificates
Participation of Participation Total
' Assets 1
Current Assets:
Cash and Cash Equivalents 1 $ 499,898 $ 302,381 $ 802,279
' Restricted Investments 10,548,034 10,548,034
Interest Receivable- Investments 100,030 100,030
Interest Receivable-Investment in Leases 17,788 1,102,475 1,120,263
Net Investment in Leases - Current Portion 385,000 4,130,000 4,515,000
Total Current Assets 1 902,686. 16,182,920 17,085,606
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Noncurrent Assets - Net Investment in
Leases -Non current-Portion 1,310,000 117,195,000 118,505,000
Total Assets 1 2,212,686 133377920 135,590,606
' Liabilities 1
Current Liabilities:
' Interest Payable 1 17,788 1,102,475 1,120,263
Long-term Debt-Due Within One Year 385,000 4,130,000 4,515,000
Total Current Liabilities 1 402,788 5,232,475 5,635,263
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Long-term Debt-Due in More Than IOne Year 1,310,000 117,195,000 118,505,000
Total Liabilities I 1,712,788 122,427,475 124,140,263
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Net Assets -Restricted for Debt Service) $ 499,898 $ 10,950,445 $ 11,450,343
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CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION '
Combining Schedule of Revenues, Expenses and Changes in Net Assets '
Year Ended June 30, 2005
1997 '
1992 Refunding
Certificates of Certificates '
Participation of Participation Total
Operating Revenue
Interest Earned on Leases $113,819 $6,100,746 $6,214,565 ,
Operating Expense '
Administration Fee (2,226) (2,226)
Operating Income 113,819 6,098,520 6,212,339
Non-operating Revenues (Expenses)
Interest Expense (116,091) (6,700,708) (6,816,799)
Investment Income 7,272 672,130 679,402
Net Non-operating Revenues (Expenses) (108,819) (6,028,578) (6,137,397) '
Change in Net Assets 5,000 69,942 74,942 '
Total Net Assets, July 1, 2004 494,898 10,880,503 11,375,401 ,
Total Net Assets, June 30, 2005 $499,898 $10,950,445 $11,450,343
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CONTRA COSTA COUNTY PUBLIC FACILITIES CORPORATION
Combining Schedule of Cash Flows
Ycar Ended June 30,2005
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1997
1992 Refunding
' Certificates of Certificatev
Participation of Participation Total
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Cash Flows From Operating Activities 1
Receipts from lessee,principal 1 $ 365,000 $ 3,925,000 S 4,290,000
Receipts from lessee,interest 115,692 6,117,918 6,233,fi 10
Payments for administrative fees l (2,226) (2,226)
Net cash provided by operating activities I 480,692 10,040,692 10,521,384
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Cash Flows From Capital And Related 1
Financing Activities
Payments for debt principal I (365,000) (3,925,000) (4,290,000)
Payments for debt interest (117,964) (6,717,880) (6,835,844)
Net cash used by capital and related financing activities (482,964) (10,642,880) (11,125,844)
Cash Flows From Investing Activities
' Receipts from earnings on investments and cash equivalents 7,272 606,714 613,986
Maturities of investments 42,422,843 42,422,843
Purchases of investments 1 (42,259,790) (42,259,790)
Net cash provided by investing activities I 7,272 769,767 777,039
Net Increase In Cash And Cash Equivalents 1 5,000 167,579 172,579
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Cash And Cash Equivalents,July 1,2004 1 494,898 134,802 629,700
Cash And Cash Equivalents,June 30,2005
q I $ 499,898 $ 302,381 S 802,279
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Reconciliation Of Operating Income To Net 1
Cash Provided By Operating Activities:
Operating income $ 113,819 $ 6,098,520 $ 6,212,339
Adjustments to reconcile operating income to net leash
provided by operating activities: I
Decrease in net investment in leases 1 365,000 3,925,000 4,290,000
Decrease in interest receivable-investment in leases 1,873 17,172 19,045
' Net cash provided by operating activities l $ 480,692 S 10,040,692 $ 10,521.384
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COUNTY OF CONTRA COSTA
PUBLIC FINANCING AUTHORITY
' (A component unit of the
County' of Contra Costa, California)
' Basic Financial Statements,
Independent Auditors' Report and
' Management's Discussion and Analysis
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For the Year Ended June 30, 2005
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
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Year Ended June 30, 2005
1 TABLE OF CONTENTS
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1 Page(s)
IndependentAuditors' Report ............................................................................................1 - 2
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Management's Discussion and Analysis (Required Supplementary Information) ........3 - 5
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1 Basic Financial Statements:
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Statement of Net Assets ..................I.....................................................................................6
Statement of Revenues, Expenses and Changes in Net Assets .............................................7
1 Statement of Cash Flows ................;......................................................................................8
Notes to the Basic Financial Statements ........................................ ..............................9 - 16
Supplementary Information:
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1 Combining Schedule of Net Assets by-Bond Program .............:........................................17 - 18
Combining Schedule of Revenues, Expenses
1 and Changes in Net Assets by Bond Program ..............................................................19-20
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Combining Schedule of Cash Flows by'Bond Program ....................................................21 - 22
Independent Auditors Report on Compliance and on
1 Internal Control Over Financial Reporting Based on an
Audit of Basic Financial Statements Performed in
Accordance with Government Auditing Standards ...............................................................23
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C&L
1 Caporicci&Larson ,
Certified Public Accountants INDEPENDENT AUDITORS 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, 2005,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 the United States
and the standards applicable to financial audits contained in Governinent 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.
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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, 2005, 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 Governrnerrt Auditing Standards, we have also issued our report dated November 30,
2005 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 inl accordance with Government Auditing Standards and should be
read in conjunction with this report in considering the results of our audit.
1 As described in Note 2 to the basic financial statements, the Authority adopted Government
Accounting Standards Board No. 40, Deposit and Investment Risk Disclosures, ( an amendment of GASB
Stateinent No. 3).
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The accompanying Required Supplementary Information, such as Management's Discussion and
I 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.
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Oakland,California
' November 30, 2005
Toll Free Ph:(877)862-2200 Toll Free Fax:(866)436-0927
Oakland Orange County Sacramento San Diego
t 180 Grand Ave.,Suite 1365 3184-D Airway Avenue 777 Campus Commons Rd.,Suite 200 4858 Mercury,Suitc 105
Oakland,California 94612 Costa Mesa,California 92626 Sacramento,California 95825 San Diego,California 92111
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COUNTY OF CONTRA ICOSTA PUBLIC FINANCING AUTHORITY
Management's Discussion and Analysis
Year Ended June 30, 2005
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 year ended June 30, 2005. The Contra Costa County ("County")
Auditor-Controller's Office prepared this discussion and analysis. Please read it in
conjunction with the accompanying basic financial statements of the Authority.
Financial Highlights I
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• Cash receipts from leases during the year totaled approximately $24.8 million and
were used to pay debt service requirements for the year ended June 30, 2005.
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• Payments to the County and the County Redevelopment Agency ("County RDA") for
capital facilities and equipment during the year ended June 30, 2005 was
approximately$19.9 million. I
Basic Financial Statements
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The basic financial statements consist of the Authority's Enterprise Fund, which is more
fully described in the notes to the basic financial statements. The Enterprise Fund is used
to account for the financing of public capital improvements provided by the Authority to
the County's governmental and proprietary operations, and the County RDA. The
financial statements provide both long- and short-term financial information and
information about cash flows. The Authority's financial statements are presented as
follows:
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' • Statement of net assets; 1
• Statement of revenues, expenses and change in net assets; and
• Statement of cash flows. 1
Financial Analysis 1
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The following table presents the Authority's net assets as of June 30, 2005 and 2004
(amounts in thousands): 1
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June 30, June 30, Change Change
1 2005 2004 ($) (%)
Current assets $ 97,586 $114,827 $(17,241) (15)%
Non-current assets 1 271,090 282,424 (11,334) (4)
Total assets 368,676 397,251 (28,575) M
Current liabilities 1 98,081 114,328 (16,427) (14)
Non-current liabilities 269,244 280,526 (11,282)
Total liabilities 1 367,325 394,854 (27,529)
Net assets-restricted for debt service X1,351 $ 2 3 7 $-(I 06)
(44)%
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY '
Management's Discussion and Analysis (Continued)
Year Ended June 30, 2005
The decrease in current assets from the prior year is primarily due to the use of bond ,
proceeds to construct buildings and improvements. Non-current assets decreased as a
result of the County and County RDA paying lease payments to the Authority, reducing '
its investment in leases. Current liabilities decreased primarily as a result of a $12.7
million decrease in due to the County; as bond proceeds were used during the year, the
liability to the County was also reduced. Non-current liabilities decreased as a result of
the Authority's scheduled repayments of long-term debt.
The following table presents the Authority's change in net assets for the year ended June
30, 2005 (amounts is thousands):
June 30, June 30, Change Change '
2005 2004 M (%)
Operating revenues $ 13,907 $ 13,734 $ 173 1%
Operating expenses (1) 22 21 105
Operating income 13,906 13,712 194 1
Non-operating revenues(expenses):
Investment income 1,354 1,197 157 13
Interest expense (14,003) (13,480) (523) (4)
Contributions to County (1,187) (338) (849) (251)
Contributions to County RDA (1,117) (2,355) 1,238 53 ,
Contributions to Oakley RDA - 135 135 100
Net non-operating expenses (14,953) (15,111) 158 1
Change in net assets (1,047) (1,399) 352 25
Net assets,beginning of year 2,397 3,796 (1,399) 37
Net assets,end of year 1 351_ _ 2 397 $ 1046 44 °
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Fluctuations in revenues and expenses were minor and result primarily from slight ,
increases in scheduled interest revenue and expense related to higher lease and debt
maturities during fiscal year 2004-05.
Long-term Debt
The long-term debt of the Authority at June 30, 2005 included $81,640,000 of
outstanding tax allocation revenue bonds, $29,365,000 of certificates of participation,
$164,900,000 of lease revenue bonds and $5,115,000 of reassessment revenue bonds.
The Authority's long-term debt will be repaid through lease agreements with the County
and the County RDA that are structured to meet principal and interest requirements
when due. During the year, the outstanding debt was reduced by principal payments of
$11,040,000. '
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Management'siDiscussion and Analysis (Continued)
Year Ended June 30, 2005
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 04553.
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1 CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY
Statement of Net Assets
June 30,2005
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' ASSETS 1
Current assets:
Restricted cash and cash equivalents 1 $ 72,770,598
Restricted investments 9,527,951
Interest receivable- investments 328,915
Interest receivable-investment in leases 3,663,525
Net investment in leases-current portion 11,295,000
rTotal current assets 1 97,585,989
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Non-current assets:
Deferred charges 1,364,850
Net investment in leases-not current 1 269,725,000
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Total non-current assets 1 271,089,850
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Total assets 1 368,675,839
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LIABILITIES 1
Current liabilities: 1
Interest payable 1 3,663,525
Due to Contra Costa County 6,202,254
Due to Contra Costa County Redevelopment Agency 57,607,687
Deferred revenue 3,208,360
Deposits payable to Contra Costa County 16,134,076
Long-term debt-due within one years 11,265,144
ITotal current liabilities 1 98,081,046
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Long-term debt-due in more than one year 269,244,112
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Total liabilities 367,325,158
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NET ASSETS-Restricted for debt service 1 $ 1,350,681
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See notes to basic financial statements.
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CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY
Statement of Revenues, Expenses and Changes in Net Assets
For the Year Ended June 30,2005 ,
OPERATING REVENUE ,
Interest earned on leases from Contra Costa County $ 13,907,232
OPERATING EXPENSE
Trustee fees 872
Operating income 13,906,360
NON-OPERATING REVENUES(EXPENSES)
Investment income 1,354,095
Interest expense (14,003,043)
Contributions to Contra Costa County (1,186,779)
Contributions to Contra Costa County Redevelopment Agency (1,117,295)
Net non-operating expenses (14,953,022)
Change in net assets (1,046,662)
NET ASSETS,July 1,2004 2,397,343
NET ASSETS,June 30,2005 $ 1,350,681
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1 CONTRA COSTA COUNTY PUBLIC FINANCING AUTHORITY
I Statement of Cash Flows
For•the Year Ended June 30,2005
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CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from lessee,principal $ 11,040,000
Receipts from lessee, interest 13,801,659
Payments for administrative fees (872)
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Net cash provided by operating activities 24,840,787
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CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:
Payments to Contra Costa County 1 (13,876,233)
Payments to Contra Costa County Redevelopment Agency (5,985,952)
r� Net cash used by non-capital financing activities (19,862,185)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Payments for principal on bonds 1 (11,040,000)
Payments for interest on bonds 1 (13,845,326)
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Net cash provided by capital and related financing activities (24,885,326)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments 1 3181
Purchases of investments 1 (3,431,878)
1 Receipts from earnings on investments andlcash equivalents 2,425,208
s� Net cash provided by investing activities (1,003,489)
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NET CHANGE IN CASH AND CASH EQUIVALENTS (20,910,213)
CASH AND CASH EQUIVALENTS,July 1,12004 93,680,811
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CASH AND CASH EQUIVALENTS,June 30,2005 $ 72,770,598
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED
BY OPERATING ACTIVITIES: 1
Operating income 1 $ 13,906,360
Changes in operating assets and liabilities
Decrease in net investment in leases 11,040,000
Increase in interest receivable-investment in leases (105,573)
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Net cash provided by operating activities $ 24,840,787
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1 COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Notes to Basic Financial Statements
Year Ended June 30;2005
NOTE 1- REPORTING ENTITY
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The County of Contra Costa Public Financing Authority ("Authority") is a joint powers
authority, organized in April 1992 pursuant to a Joint Exercise of Powers Resolution
("Resolution") between the County of Contra Costa ("County") and the Contra Costa County
Redevelopment Agency ("County RDA"). The Resolution was entered into pursuant to the
Government Code of the State of California, commencing with Section 6500. The Authority
is a separate legal 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 County RDA.
1 The basic financial statements present only the Authority and are not intended to present
fairly the financial position and changes in financial position and cash flows of the County or
the County RDA in conformity with accounting principles generally accepted in the United
States of America. 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.
Administrative expenses incurred in the day-to-day operations of the Authority, such as
personnel costs, office expenses and management, are provided by the County and County
RDA 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 County RDA sponsored projects using
lease agreements signed by the County and County RDA as collateral. The agreements
provide sufficient resources to repay the debt incurred by the Authority to finance projects.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Accounting
All activities of the Authority are accounted for within a single enterprise fund. The County
and County RDA'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
liabilities associated with the operations are included on the statement of net assets.
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
.NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Enterprise funds distinguish operating revenues and expenses from non-operating 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 the collection of lease interest revenue from the County and the County RDA.
Operating expenses for the Authority include the cost of administering the services. All
revenues and expenses not meeting this definition are reported as non-operating revenues
and expenses.
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
those standards do not conflict with or contradict guidance of the Governmental Accounting
Standards Board. 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 Authority has elected not to follow subsequent private-sector guidance.
Cash and Cash Equivalents '
Cash and cash equivalents include money market mutual funds and all highly liquid
investments with original purchase maturities of three months or less. Cash in the County '
pool and in the State of California Local Agency Investment Fund are considered to be
demand deposits and are therefore classified as cash equivalents.
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 in a current
sale between a willing buyer and seller and is generally measured by quoted market prices.
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 County RDA to the Authority for the use of
buildings and leasehold improvements acquired or constructed with bond proceeds issued
by the Authority. In the lease agreements relating to the bonds, the County and the County
RDA 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 County RDA. To the
extent that funds are unexpended upon completion of all projects, such funds will be used to '
retire outstanding debt; rental payments required from the County and the County RDA will
be reduced accordingly.
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Notes to Basic Financial Statements (Continued)
Year Ended June 30,2005
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
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Net Assets
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Net assets comprise various net earnings from operating and nonoperating revenues and
expenses. Net assets are classified as restricted for debt service.
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Estimates . .
The preparation of basic financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly, actual results may differ from those
estimates. :
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.� Implementation of New Accounting Pronouncement
As of June 30, 2005, the Authority adopted the provisions of Governmental Accounting
Standards Board (GASB) Statement No. 40, Deposit and Investment Risk Disclosures — an
'j amendment of GASB Statement No. 3. The Statement modifies the custodial credit risk
disclosures required by GASB Statement No. 3, Deposits with Financial institutions,
Investments (Including Repurchase Agreements), and Reverse Repurchase Agreements, and
addresses deposit and investment asks related to credit risk, concentration of credit risk,
interest rate risk, and foreign currency risk. The disclosure changes related to implementing
this pronouncement are reflected in Note 3.
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NOTE 3—CASH AND INVESTMENTS
The following table summarizes they fair value of the Authority's cash and investments at
June 30, 2005:
1 Guaranteed investment contracts $ 9,527,951
Mutual funds 55,114,180
' California Asset Management Program- 2A7-like pool 7,957,570
State of California Local Agency Investment Fund 9,645,585
Pooled cash with Contra Costa County 53,263
' Total cash and investments $82,298,549
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Provisions of the Authority's bond trust agreements require that certain trust accounts be
established. These accounts are held by trustees and fiscal agents for debt service payments,
reserves and capital improvement projects. The funds in these trust accounts have been
invested only as permitted by specific state statutes governing their investment or applicable
Authority ordinance, resolution or,bond indenture. The trust indentures place no limit on the
amount the Authority may invest in one issuer. Investments that represent.more than 5% of
the Authority's investments are the California Asset Management Program ("CAMP"), the
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY 0
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
NOTE 37 CASH AND INVESTMENTS (Continued)
State Treasurer's Local Agency Investment Fund ("LAIF") and mutual funds. Investments
have been classified as restricted on the statement of net assets because their use is limited
by bond covenants.
The California Government Code authorizes the Authority to invest in obligations of the
United States Treasury, federal agencies, state of California and municipalities; LAIF;
commercial paper; bankers' acceptances; repurchase agreements; medium-term corporate
notes; negotiable certificates of deposits;.mutual funds and investments in accordance with
the statutory provisions governing the issuance of bonds.
Guaranteed Investment Contracts
The maturity dates and interest rates of guaranteed investment contracts at June 30, 2005
were as follows:
Interest
Fund Maturity Date Rate Amount ,
• 1999 Tax Allocation Bonds August 1, 2028 5.750% $3,431,878
• 1997 Certificates of Participation February 1, 2021 5.761 2,718,085
• 1998 Lease Revenue Bonds August 1, 2024 5.721 1,792,629 '
• 1999 Lease Revenue Bonds June 13, 2019 5.245 1,585,359
j9,5 2 7 951
Mutual Funds ,
Mutual funds are rated AAA and are available to the Authority at any time. Information 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 June 30, 2005.
California Asset Management Program ,
As of June 30, 2005, the Authority's investment in the California Asset Management ,
Program ("CAMP") pool is $7,957,570. 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.
State Treasurer's Local Agency Investment Fund
As of June 30, 2005, the Authority's investment in the California Local Agency Investment
Fund ("LAIF") was $9,645,585. The Local Investment Advisory Board has oversight '
responsibility for LAIF. The Board consists of five members as designated by State statute.
The value of the pool shares in LAIF that may be withdrawn is determined on the amortized
cost basis, which is different than the fair value of the Authority's position in the pool.
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Notes to Basic Financial Statements (Continued)
Year Ended June 30,2005
iNOTE 3 —CASH AND INVESTMENTS (Continued)
i
Pooled cash with Contra Costa Coui:ty
The Authority's restricted cash pooled with the County at June 30, 2005 is $53,263. This
cash is held in individually directed I investment accounts with the County Treasurer for the
purpose of maximizing earnings until principal and interest payments come due. Cash and
investments in the County pool are subject to oversight by the Treasury Oversight
Committee. The fair value of the Authority's position in the;County pool is the same as the
value of the cash pool shares.
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NOTE 4 -NET INVESTMENT INi LEASES
I
The Authority receives its lease revenues from the County and the County RDA. The
County and`�County RDA lease certain buildings and leasehold improvements from the
Authority under leases through 2033. Lease payments received from the County and County
RDA during the year ended June 30, 2005 were approximately $24,842,000. The
Authority's net investment in leases'at June 30, 2005 is as follows:
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Tax
Allocation Certificates Lease Reassessment
_ Year Ending Revenue 1 of Revenue Revenue
June 30: Bonds Participation Bonds Bonds Total
2006 $5,445,580 $2,744,289 $16,051,258 $788,048 $25,029,175
.2007 5,658,481 1 2,748,264 16,060,790 804,993 25,272,528
2008 5,658,776 1 2,747,908 16,103,565 574,628 25,084,877.
2009 5,652,899 2,748,070 14,562,375 583,020 23,546,364
2010 5,652,662 1 2,744,430 13,361,388 579,495 22,337,975
1
2011 -2015 28,209,723 1 13,732,700 66,337,358 2,540,413 110,820,194
2016-2020 28,131,490 1 13,731,863 52,609,495 959,825 95,432,673
2021 —2025 28,014,962 2,747,025 42,960,954 73,722,941
' 2026—2030 28,294,662 1 17,707,083 46,001,745
2031 —2035 22,872,438 1 '22,872,438
Total future minimum 1
lease payments to be
' received 163,591,673 1 43,944,549 255,754,266 6,830,422 470,120,910
Less unearned interest
t income 81,951,673 1 14,579,549 90,854,266 1,715,422 189 100 910
Net investment in
lease 81,640,000 29,365,000 164,900,000 5,115,000 281,020,000
t Less current portion 1,075,000 1 1,245,000 8,445,000 530,000 11,295,000
Long-term portion $80,565,000 $28.120,000 $156.455.000 $4.585.000 $269.725.000
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
NOTE 5—LONG-TERM DEBT
Following is a summary of the Authority's changes in long-term debt during the year
ended June 30, 2005:
Balance Balance Due within
July 1,2004 Additions Retirements June 30,2005 One Year
Tax Allocation Bonds:
1992 Series A
1995 Series B $ 2,425,000 $ 55,000 $ 2,370,000 $55,000 '
1999 Series A 34,640,000 610,000 34,030,000 630,000
2003 Series A 43,345,000 525,000 42,820,000 375,000
2003 Series B 2,445,000 25,000 2,420,000 15,000
82,855,000 1,215,000 81,640,000 1,075,000
Certificates of Participation-
1997 Series 30,555,000 1,190,000 29,365,000 1,245,000
Lease Revenue Bonds:
1998 Refunding Series A 22,265,000 600,000 21,665,000 625,000 ,
1999 Refunding Series A 59,890,000 3,115,000 56,775,000 3,235,000
2001 Refunding Series A 16,680,000 480,000 16,200,000 495,000
2001 Refunding Series B 22,705,000 570,000 22,135,000 595,000
2002 Refunding Series A 12,165,000 345,000 11,820,000 360,000
2002 Refunding Series B 21,585,000 1,870,000 19,715,000 1,945,000
2003 Refunding Series A 17,745,000 1,155,000 16,590,000 1,190,000
173,035,000 8,135,000 164,900,000 8,445,000 '
Reassessment Revenue Bonds-
2001 Series A 5,615,000 500,000 5,115,000 530,000
Total 292,060,000 11,040,000 281,020,000 11,295,000
Discount/premium-net (488,459) 22,285 (510,744) (29,856) '
Net long-term debt outstanding $291,571,541 $ - $11,062,285 $280,509,256 $11,265,144
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
NOTE 5- LONG-TERM DEBT (Continued)
I
Long-term debt at June 30, 2005 consisted of the following:
Annual
' Principal Original
Interest Installments Issue
Type of indebtedness Maturity Rates (in thousands) Amount
Tax allocation revenue bonds: 1
1 1995 Series B 1 2026 5.60-6.90% $55- 1,520 $2,735,000
1999 Series A 2029 4.20-5.45 680-21,990 44,615,000
2003 Series A 2034 3.00-5.625 375 - 19,700 43,345,000
'
2003SeriesB 2034 3.00-5.625 15 - 1,940 2,445,000
Certificates of participation-
Series 1997 2021 4.40-5.25 1,190—9,680 34,910,000
1
Lease revenue bonds: 1
1998 Refunding Series A 1 2025 4.30-5.35 600-6,435 24,695,000
1999 Refunding Series A 1 2028 4.00-5.00 1,390—17,690 74,685,000
2001 Refunding Series A 1 2026 3.55 -4.80 480-4,355 18,030,000
2001 Refunding Series B 1 2027 4.25 -5.25 570-5,995 23,775,000
2002 Refunding Series A 1 2027 2.75 -5.00 345-760 12,650,000
2002 Refunding Series B 1 2019 3.00-4.60 930-2,090 25,440,000
2003 Refunding Series A 2028 2.00-5.00 365- 1,240 18,500,000
I
Reassessment revenue bonds-
.2001 Series A 2015 4.25 -5.60 360-570 6,575,000
i
Defeased Debt
1
In July 2000, the City of Oakley Redevelopment Agency assumed the rights,
responsibilities, powers and obligations of the Oakley Project Area, a project area of the
County RDA. In December 2003, the City of Oakley Redevelopment Agency issued tax
allocation bonds and used a portion of the proceeds to prepay its lease to the Authority. The
amount received by the Authority of $7,763,247 was placed in an irrevocable trust to
provide all future debt service payments on the Oakley Project Area portion of the 1999 tax
allocation bonds. The balance of the bonds outstanding at June 30, 2005 of$6,845,000 are
' considered defeased and have been removed from the financial statements.
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COUNTY OF CONTRA COSTA PUBLIC FINANCING AUTHORITY
Notes to Basic Financial Statements (Continued)
Year Ended June 30, 2005
NOTE 5—LONG-TERM DEBT (Continued)
Repayment Requirements
Future debt service requirements for the outstanding long-teen debt, including sinking fund '
payments, are as follows:
Tax Allocation Bonds Certificates ofParticination
Year ending June 30: Principal Interest Principal Interest
2006 $ 1,075,000 $ 4,349,580 $ 1,245,000 $ 1,499,289
2007 1,355,000 4,302,235 1,305,000 1,443,264
2008 1,410,000 4,247,296 1,365,000 1,382,908
2009 1,465,000 4,187,168 1,430,000 1,318,070
2010 1,530,000 4,121,664 1,495,000 1,249,430
2011 - 2015 8,810,000 19,393,958 8,695,000 5,037,700 ,
2016 - 2020 11,355,000 16,767,511 11,220,000 2,511,863
2021 - 2025 14,815,000 13,198,499 2,610,000 137,025
2026 - 2030 19,785,000 8,511,835 - -
2031 —2035 20,040,000 2,348,438 - -
Total requirements $81,640,000 $81,428,184 $29,365,000 $14,579.549
Lease Revenue Bonds Reassessment Revenue Bonds
Year ending June 30: Principal Interest Principal Interest
2006 $ 8,445,000 $ 7,598,971 $ 530,000 $ 258,048 ,
2007 8,750,000 7,304,381 570,000 234,993
2008 9,100,000 6,993,869 365,000 209,628
2009 7,925,000 6,630,263 390,000 - 193,020 '
2010 7,050,000 6,302,467 405,000 174,495
2011 - 2015 39,705,000 26,598,365 1,970,000 570,413 '
2016 - 2020 35,540,000 17,047,579 885,000 74,825
2021 - 2025 34,180,000 8,773,583 - -
2026 - 2030 14,205,000 1,272,083
Total requirements $164,900,000 $88,521,561 $5,115,000 $1,715,422
NOTE 6 -RISK MANAGEMENT
T related f ,
The Authority is exposed to various asks of loss re at d to torts, theft o , damage to, a
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, 2005, 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.
16
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' Caporicci&Larson
Certified Ptiblic Accotnttcrnts
' 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, 2004, and have issued our report thereon dated November 12,
2004. We conducted our audit in accordance with generally accepted auditing standards in the United
tStates and the standards applicable to financial audits contained in Governinent Auditing Standards,
issued by the Comptroller General of the United States.
' Compliance
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 Goverinttent Auditing Standards.
' Internal Control Over Financial Reporting
.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 control
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 than these specified
parties.
Oakland,California
' November 12,2004
Toll Free Ph:(877)862-2200 Toll Free Fax:(866)436-0927
Oakland Orange County Sacramento San Diego
180 Grand Ave.,Suite 1365 3184-D Ainva%.Avenue 777 Campus Commons Rd.,Suite 200 4858 Mercury,Suite 105
Oakland,California 94612 Costa Mesa,California 92626 Sacramento,California 95825 San Diego,California 92111