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COUNTY OF ALPINE ANNUAL FINANCIAL STATEMENTS JUNE 30, 2014 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Independent Auditor’s Report 1-2 Management’s Discussion and Analysis (Required Supplementary Information) 3-11 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position 13 Statement of Activities 14 Fund Financial Statements: Governmental Funds: Balance Sheet 15 Reconciliation of the Balance Sheet to the Statement of Net Position 16 Statement of Revenues, Expenditures and Changes in Fund Balances 17 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 18 Proprietary Funds: Statement of Net Position 19 Statement of Revenues, Expenses and Changes in Fund Net Position 20 Statement of Cash Flows 21 Fiduciary Funds: Statement of Fiduciary Net Position 22 Statement of Changes in Fiduciary Net Position 23 Notes to the Basic Financial Statements 24-50 Required Supplementary Information: Schedule of Funding Progress – County Postemployment Healthcare Plan 51 Budgetary Comparison Schedules: General Fund 52-54 Road Fund 55 Mental Health Services Act 56 STPUD Mitigation Fund 57 Realignment Fund 58 Note to Required Supplementary Information 59 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining Fund Statements: Nonmajor Governmental Funds: Balance Sheet 60 Statement of Revenues, Expenditures and Changes in Fund Balances 61 Nonmajor Special Revenue Funds: Combining Balance Sheet 62-71 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 72-81 Nonmajor Capital Projects Funds: Combining Balance Sheet 82-83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 84-85 ---PAGE BREAK--- 1 INDEPENDENT AUDITOR’S REPORT To the Board of Supervisors County of Alpine Markleeville, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County of Alpine, California (the County) as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the County’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Alpine County Children and Families Commission (the Commission), the discretely presented component unit, which represent 100% of the assets, net position, and revenues of the discretely presented component unit. Those statements were audited by other auditors whose report has been furnished to us, and in our opinion, insofar as it relates to the amounts included for the Commission, is based solely on the report of other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the County’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the County’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. ---PAGE BREAK--- 2 Opinions In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County of Alpine, California, as of June 30, 2014, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3-11, the schedule of funding progress on page 51, and the budgetary comparison information on pages 52-59 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s basic financial statements. The combining nonmajor fund financial statements, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining nonmajor fund financial statements, as listed in the table of contents, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 23, 2015, on our consideration of the County’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the County’s internal control over financial reporting and compliance. Clovis, California March 23, 2015 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2014 3 As management of the County of Alpine (County), we offer readers of the County’s financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended June 30, 2014. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the County’s financial statements, which immediately follow this section. Financial Highlights The assets of the County exceeded its liabilities at the close of the most recent fiscal year by $39,265,863 (net position). Of this amount, $5,973,896 is unrestricted and available to meet ongoing obligations to citizens and creditors. $17,378,238 is restricted and must be used only for specific purposes and $15,913,729 is invested in capital assets, net of related debt. As of June 30, 2014, the County’s governmental funds reported combined fund balances of $24,409,036, a decrease of $2,566,639 in comparison with the prior year. Of this decrease, $4,583 is the result of adjustments to expenditures reported in the prior year and $2,562,056 is the amount that current year expenditures exceeded current year revenues. Amounts available for spending include restricted, committed, assigned and unassigned fund balances and total 92.81% of ending fund balance. Of this amount, $17,477,551 is restricted by law or externally imposed requirements, $1,034,211 is committed for specific purposes and $3,657,412 is assigned for specific purposes based on the intent of the Board of Supervisors. At the end of the current fiscal year, unassigned fund balance for the General Fund was $842,351 or 10.88% of total General Fund expenditures. The County’s capital asset balances increased by $3,310,304 or 24% during the current fiscal year. The increase results from new purchases of $525,584 and construction additions of $4,910,333, reduced by $1,081,869 of depreciation on capital assets previously placed in service. Project costs of $1,043,744 were removed from construction in process because projects were abandoned during the year or accumulated costs incurred did not qualify for capitalization. The County’s long-term liabilities decreased by $18,220 or 0.85% during the current fiscal year. An increase in the claims liability of $69,590 was more than offset by decreases in the capital lease and compensated absence liabilities. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements. The County’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other required supplementary information in addition to the basic financial statements themselves. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2014 4 Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the County’s finances, in a manner similar to a private-sector business. These statements provide both long- term and short-term information about the County’s overall financial status. The Statement of Net Position presents information on all of the County’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The Statement of Activities presents information showing how the County’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flow. Thus revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public protection, public ways and facilities, health and sanitation, public assistance, education and recreation and cultural services. The business-type activities of the County include Alpine County Transit. The government-wide financial statements include the following blended component units: County Service Area #1 and Alpine Transportation Commission. These component units are included in the County’s reporting entity because of the significance of their financial or operational relationship and their mutual governing body. The Alpine County Children and Families Commission is included as a discretely presented component unit. The Commission is considered a component unit of the County because the County’s Board of Supervisors appoints commission members and commission members serve at the pleasure of the County’s Board. However, because the County Board of Supervisors and the Commission’s Board are not substantially the same, the Commission was discretely presented in the County’s government-wide financial statements. 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 County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the County can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2014 5 Governmental Funds Governmental funds are used to account for essentially 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 how cash and other financial assets can readily be converted to available resources and the balances left at year-end that are available for spending. Such information may be useful in determining what financial resources are available in the near future to finance the County’s programs. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for 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 financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The County maintains several individual governmental funds organized according to their type (special revenue, permanent, debt service and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, the Road Fund, the Mental Health Services Act Fund, the STPUD Mitigation Fund, the Realignment Fund and the Alpine County Government Center Fund, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The County adopts an annual appropriated budget for its General Fund, special revenue, permanent, debt service and capital projects funds. A budgetary comparison schedule has been provided for the General Fund and each major special revenue fund to demonstrate compliance with the budget. Proprietary Funds The County maintains one of two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The County uses an enterprise fund to account for Alpine County Transit. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the County’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2014 6 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. Other information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the County’s progress in funding its obligation to provide other postemployment benefits to its employees. The combining statements referred to earlier in connection with non-major governmental funds are presented immediately following the required supplementary information. GOVERNMENT-WIDE FINANCIAL ANALYSIS Summary of Net Position As of June 30, (in thousands) Governmental Activities Business-Type Activities Total 2014 2013 2014 2013 2014 2013 Assets: Current and other assets 26,509 $ 28,852 $ 82 $ 128 $ 26,591 $ 28,980 $ Capital assets, net 17,109 13,791 19 26 17,128 13,817 Total assets 43,618 42,643 101 154 43,719 42,797 Liabilities: Current and other liabilities 1,187 732 122 168 1,309 900 Long-term liabilities 3,144 3,051 - - 3,144 3,051 Total liabilities 4,331 3,783 122 168 4,453 3,951 Net Position: Net invetment in capital assets 15,895 13,676 19 26 15,914 13,702 Restricted net position 17,378 16,614 - - 17,378 16,614 Unrestricted net position 6,014 8,570 (40) (40) 5,974 8,530 Total net position 39,287 $ 38,860 $ (21) $ (14) $ 39,266 $ 38,846 $ As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets exceeded liabilities by $39,265,863 at the close of the most recent fiscal year, increasing $419,027, or 1.1% during the year. The largest portion of the County’s net position is restricted net position representing resources that are subject to external restrictions on how they may be used. During the fiscal year, restricted net position increased $764,255, or 4.6%. The next largest portion of the County’s net position is its net investment in capital assets land, infrastructure, buildings and improvements and machinery and equipment), less any related outstanding debt used to acquire those assets. The County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2014 7 Unrestricted net position in the amount of $5,973,896, or 15%, of total net position may be used to meet the County’s ongoing obligations to citizens and creditors. Unrestricted net position decreased $2,555,928, or 30%, because prior year surpluses were used to purchase capital assets, finance construction and provide matching funds on federal and state grants. At the end of the current fiscal year, the County reported positive balances in all three categories of net position. While the County’s sole business-type activity ended the year in a deficit net position, this was because of a funding shortfall that occurred in a previous year and not because of current year activity. The County’s total net position increased $419,027 during the fiscal year ended June 30, 2014. When compared to the prior year, revenues increased $304,008, or 1.93%, and expenses increased $1,303,624, or The following table shows the changes in net position for governmental and business-type activities. Changes in Net Position Year ended June 30, (in thousands) Governmental Activities Business-Type Activities Total 2014 2013 2014 2013 2014 2013 Revenues: Program revenues: Charges for services 1,962 $ 1,828 $ 7 $ 5 $ 1,969 $ 1,833 $ Operating grants and contributions 8,030 7,830 59 68 8,089 7,898 Capital grants and contributions 145 135 - - 145 135 General revenues: Property taxes 4,915 4,791 - - 4,915 4,791 Sales taxes 229 248 - - 229 248 Other taxes 510 604 - - 510 604 Unrestricted investment earnings 68 100 1 - 69 100 Non-program grant revenues 168 180 - - 168 180 Total revenues 16,027 15,716 67 73 16,094 15,789 Expenses: General government 3,326 2,516 - - 3,326 2,516 Public protection 5,641 4,776 - - 5,641 4,776 Public ways and facilities 2,067 2,119 - - 2,067 2,119 Health and sanitation 2,493 2,535 - - 2,493 2,535 Public assistance 1,629 1,858 - - 1,629 1,858 Education 314 310 - - 314 310 Recreation 79 101 - - 79 101 Interest on long-term debt 47 70 - - 47 70 Alpine County Transit - - 74 81 74 81 Total expenses 15,596 14,285 74 81 15,670 14,366 Change in net position 431 1,431 424 1,423 Net position at beginning of year 38,860 37,424 (14) 38,846 37,418 Restatements 5 - - 5 Net position at end of the year 39,287 $ 38,860 $ (21) $ (14) $ 39,266 $ 38,846 $ ---PAGE BREAK--- COUNTY Managem For the Ye Expenses Year ende (in thousa Revenues Year ende 10 20 30 40 50 60 C OF ALPINE ment’s Discuss ear Ended Ju s and Progra ed June 30, 2 ands) s by Source – ed June 30, 2 0 000 000 000 000 000 000 Operating gra and contribut 50.10% Capital grants a contribution 0.90% sion and Analy ne 30, 2014 am Revenues 014 – Governme 014 P ants ions and s ysis s – Governme ntal Activitie Property taxes 30.67% Re 8 ental Activiti es evenues es Other taxe 4.61% es Interest e 0.42 spe Cha s 1 Revenues Expenses earnings 2% Grants not restricted to ecific program 1.05% arges for ervices 12.24% s ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2014 9 The County’s revenues increased by $304,008, or just 1.93%. The County’s expenses increased by $1,303,624, or The increase is the mostly the result of the write- off of project costs from construction in process because projects were abandoned during the year or accumulated costs incurred did not qualify for capitalization. Govermental Funds As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The focus of the County’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the County’s financing requirements. At June 30, 2014, the County’s governmental funds reported combined ending fund balances of $24,409,036, a decrease of $2,566,639 in comparison with the prior year. The components of fund balance are as follows, and with the exception of nonspendable fund balance, are available for appropriation at any time: Nonspendable fund balance, $1,755,402, consists of amounts that are not spendable in form or are legally or contractually required to remain intact. The largest component of this balance is the deposit of $1,215,260 held by Trindel, the County’s insurance claims processor. Nonspendable fund balance also includes $400,000 representing the corpus portion of the County’s one permanent fund. Restricted fund balance, $17,477,551, consists of amounts with constraints externally imposed by creditors, grantors, laws, regulations and enabling legislation. While these amount are available for appropriation at any time, the nature of the expenditures are constrained by external providers. Significant components of this balance include: o Mental Health Services Act - $6,008,673 o Realignment funding - $4,610,643 o Restricted to road maintenance and improvement - $1,726,913 o AB443 Enhancing Law Enforcement Activities - $653,631 Committed fund balance, $1,034,211, consists of amounts that have been committed to specific purposes by the Board of Supervisors and consists of amounts set aside for future capital related projects. This balance consist solely of STPUD Mitigation funding which the Board of Supervisors by resolution has set aside for capital related improvements. Assigned fund balance, $3,657,412, represents amounts intended for use as determined by the Board of Supervisors and also represents the residual balance in governmental funds other than the General Fund. Assigned fund balances primarily consists of $1 million set aside for fiscal emergencies, $1,113,335 anticipated for funding next fiscal year’s General Fund shortfall in revenues, $450,000 for funding activities struggling with shrinking revenues, $512,268 set aside for unfunded other postemployment liabilities and $290,290 set aside for on-going capital projects. Unassigned fund balance, $484,460, represents the residual classification for the General Fund netted against deficit balances in other governmental funds. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2014 10 General Fund Approximately 80%, or $4,844,434, of the General Fund’s fund balance is available to meet the County’s current and future needs. With the approval of the Board of Supervisors, County management can earmark a portion of fund balance to a particular function, project or activity, and can also earmark it for purposes beyond the current year, within the constraints applied to the various categories of fund balance. With the exception of the nonspendable portion, fund balances are available for appropriation at any time. The General Fund is the County’s main operating fund. During the year, unassigned fund balance in the General Fund increased by $353,610, or 72% over last year’s balance. As a measure of the General Fund’s liquidity, it is useful to compare both total fund balance and spendable fund balance to total General Fund expenditures. Total fund balance is approximately 78% of total General Fund expenditures and spendable fund balance is approximately 62.6%. Both measures are less favorable when compared to the prior year (90% and 68.9%, respectively for the prior year). This generally is because significant one-time expenditures which were higher than prior years relied primarily on prior year surpluses for funding. Other Governmental Funds As compared with the prior year, the total fund balances of the remaining governmental funds decreased 13.8%, or $2,938,903. The decrease results from utilizing prior year special revenues to fund certain general fund operations, to pay for one-time expenditures that include the purchase of capital assets and investments in county facilities and also to provide matching funds for federal and state grants. GOVERNMENTAL FUND BUDGETARY HIGHLIGHTS The County’s final budget appropriations for expenditures for the General Fund differ from the original budget by $359,929, or 3.9%. Significant changes in appropriations included using unanticipated revenues to fund one-time spending that was unknown at the time the original budget was adopted. Actual expenditures were less than budgeted appropriations by $1,255,513, or 13% of final budgeted appropriations. Differences between the final budget and actual amounts are mostly the result of cost savings but also include delays experienced when scheduled projects funded by the general fund did not occur as anticipated. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County’s capital assets for its governmental and business-type activities as of June 30, 2014 totaled $17.1 million. Capital assets include land, buildings and improvements, machinery and equipment, park facilities, roads and bridges. The total net increase (including the effect of depreciation) in the County’s capital assets for the current fiscal year was $3,310,304, or 24%. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2014 11 Major capital asset additions during the current fiscal year included: Alpine County Government Center project - $4,444,881 Acquisition of former guard station property - $101,311 Fire trucks and equipment - $270,000 Computer, copiers and other electronic equipment - $113,600 At June 30, 2014, the County wrote off $1,043,744 of construction in progress costs that included $735,390 for the Leviathan Peak Communications project which was transferred to the California Highway Patrol and $308,354 for costs which did not qualify for capitalization. Additional information on the County’s capital assets can be found in Note 4 to the basic financial statements. Debt Administration At the end of the current fiscal year, the County had total long-term liabilities outstanding of $2,134,469, a decrease of $18,220 from the prior year. Long-term liabilities include one capital lease, compensated absences and the liability for future claims costs. Additional information on the County’s long-term liabilities can be found in Note 5 to the basic financial statements. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Alpine County Finance Department at P.O. Box 266, Markleeville, California 96120. ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Statement of Net Position June 30, 2014 Discrete Component Unit Alpine County Primary Government Children Governmental Business-Type and Families Activities Activities Totals Commission ASSETS Cash and investments 23,136,778 $ 83,688 $ 23,220,466 $ 250,009 $ Accounts receivable 22,067 - 22,067 - Taxes receivable 425,362 - 425,362 - Due from other governments 1,555,189 - 1,555,189 760 Interest receivable 12,119 47 12,166 - Prepaid expense 4,494 - 4,494 - Deposits 1,215,260 - 1,215,260 - Inventories 135,648 - 135,648 - Interfund balances 1,627 (1,627) - - Capital assets: Nondepreciable 5,198,451 - 5,198,451 - Depreciable, net 11,910,921 18,913 11,929,834 - Total Assets 43,617,916 101,021 43,718,937 250,769 LIABILITIES Accounts payable 791,105 157 791,262 660 Accrued salaries and benefits 241,851 1,014 242,865 - Accrued interest payable 3,796 - 3,796 - Unearned revenue 150,000 121,050 271,050 - Long-term liabilities: Due within one year: Compensated absences 236,067 - 236,067 7,055 Capital leases 67,382 - 67,382 - Estimated liability for claims costs 447,779 - 447,779 - Due after one year: Compensated absences 236,067 - 236,067 - Capital leases 1,147,174 - 1,147,174 - Other post-employment benefits 1,009,632 - 1,009,632 - Total Liabilities 4,330,853 122,221 4,453,074 7,715 NET POSITION Net investment in capital assets 15,894,816 18,913 15,913,729 - Restricted 17,378,238 - 17,378,238 243,054 Unrestricted 6,014,009 (40,113) 5,973,896 - Total Net Position 39,287,063 $ (21,200) $ 39,265,863 $ 243,054 $ See accompanying notes to the basic financial statements. 13 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2014 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: General government 3,325,328 $ 757,519 $ - $ - $ Public protection 5,641,170 580,303 1,961,500 - Public ways and facilities 2,067,316 300,818 1,347,611 145,298 Health and sanitation 2,493,267 273,429 2,833,759 - Public assistance 1,628,816 23,717 1,871,674 - Education 314,282 26,428 15,738 - Recreation and culture 79,324 - - - Interest on long-term debt 47,169 - - - Total Governmental Activities 15,596,672 1,962,214 8,030,282 145,298 Business-Type Activities Alpine Transit Service 73,959 7,100 58,982 - Total Primary Government 15,670,631 $ 1,969,314 $ 8,089,264 $ 145,298 $ Component Unit: Alpine County Children and and Families Commission 202,264 $ - $ 252,353 $ - $ GENERAL REVENUES AND TRANSFERS Taxes: Property taxes Sales and use taxes Transient occupancy taxes Other taxes Grants and other governmental revenues not restricted to specific programs Unrestricted investment earnings Total General Revenues CHANGES IN NET POSITION Net position, beginning of year Prior period adjustments NET POSITION, END OF YEAR See the accompanying notes to the basic financial statements. 14 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Position Discrete Primary Government Component Unit Alpine County Business- Children Governmental Type and Families Activities Activities Total Commission FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: (2,567,809) $ - $ (2,567,809) $ General government (3,099,367) - (3,099,367) Public protection (273,589) - (273,589) Public ways and facilities 613,921 - 613,921 Health and sanitation 266,575 - 266,575 Public assistance (272,116) - (272,116) Education (79,324) - (79,324) Recreation and culture (47,169) - (47,169) Interest on long-term debt (5,458,878) - (5,458,878) Total Governmental Activities Business-Type Activities - (7,877) (7,877) Alpine Transit Service (5,458,878) (7,877) (5,466,755) Total Primary Government Component Unit: Alpine County Children and 50,089 $ and Families Commission GENERAL REVENUES AND TRANSFERS Taxes: 4,915,197 - 4,915,197 - Property taxes 228,612 - 228,612 - Sales and use taxes 481,833 - 481,833 - Transient occupancy taxes 28,297 - 28,297 - Other taxes Grants and other governmental revenues 167,808 - 167,808 - not restricted to specific programs 68,306 312 68,618 672 Unrestricted investment earnings 5,890,053 312 5,890,365 672 Total General Revenues 431,175 (7,565) 423,610 50,761 CHANGES IN NET POSITION 38,860,471 (13,635) 38,846,836 192,293 Net position, beginning of year (4,583) - (4,583) - Prior period adjustments 39,287,063 $ (21,200) $ 39,265,863 $ 243,054 $ NET POSITION, END OF YEAR ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2014 Mental General Road Health STPUD Fund Fund Services Act Mitigation ASSETS Cash and investments 4,656,240 $ 1,809,797 $ 5,902,797 $ 1,033,640 $ Accounts receivable 17,239 19 508 - Taxes receivable 401,657 - - - Due from other governments 278,171 21,100 148,818 - Interest receivable 2,927 906 2,929 571 Prepaid expenses 4,494 - - - Deposits 1,215,260 - - - Inventories - 135,648 - - Due from other funds 419,377 101,044 2,370 - Total Assets 6,995,365 $ 2,068,514 $ 6,057,422 $ 1,034,211 $ LIABILITIES Accounts payable 208,429 $ 26,014 $ 33,899 $ - $ Accrued salaries and benefits 152,303 17,437 14,292 - Due to other funds 28,057 2,981 558 - Unearned revenues - 150,000 - - Total Liabilities 388,789 196,432 48,749 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues 542,388 9,521 - - FUND BALANCES Nonspendable 1,219,754 135,648 - - Restricted 687,595 1,726,913 6,008,673 - Committed - - - 1,034,211 Assigned 3,314,488 - - - Unassigned 842,351 - - - Total Fund Balances 6,064,188 1,862,561 6,008,673 1,034,211 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,995,365 $ 2,068,514 $ 6,057,422 $ 1,034,211 $ See the accompany notes to the basic financial statements. 15 ---PAGE BREAK--- Alpine County Realignment Government Other Fund Center Governmental Total ASSETS 4,720,756 $ - $ 5,013,548 $ 23,136,778 $ Cash and investments 103 - 4,198 22,067 Accounts receivable - - 23,705 425,362 Taxes receivable 203,603 - 903,497 1,555,189 Due from other governments 2,353 - 2,433 12,119 Interest receivable - - - 4,494 Prepaid expenses - - - 1,215,260 Deposits - - - 135,648 Inventories 10,287 - 298,117 831,195 Due from other funds 4,937,102 $ - $ 6,245,498 $ 27,338,112 $ Total Assets LIABILITIES - $ 215,840 $ 306,923 $ 791,105 $ Accounts payable - - 57,819 241,851 Accrued salaries and benefits 326,459 21,944 449,569 829,568 Due to other funds - - - 150,000 Advances from other funds 326,459 237,784 814,311 2,012,524 Total Liabilities DEFERRED INFLOWS OF RESOURCES - - 364,643 916,552 Unavailable revenues FUND BALANCES - - 400,000 1,755,402 Nonspendable 4,610,643 - 4,443,727 17,477,551 Restricted - - - 1,034,211 Committed - - 342,924 3,657,412 Assigned - (237,784) (120,107) 484,460 Unassigned 4,610,643 (237,784) 5,066,544 24,409,036 Total Fund Balances Total Liabilities, Deferred Inflows 4,937,102 $ - $ 6,245,498 $ 27,338,112 $ of Resources and Fund Balances ---PAGE BREAK--- COUNTY OF ALPINE Reconciliation of the Balance Sheet to the Statement of Net Position Governmental Funds June 30, 2014 Fund balance - total governmental funds 24,409,036 $ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds Governmental capital assets 61,397,458 $ Less: accumulated depreciation (44,288,086) 17,109,372 Revenues that are not available and, therefore, do not meet the modified accrual criteria are deferred in the governmental funds but are recorded in the statement of activities 916,552 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds Estimated liability for claims costs (447,779) Capital leases (1,214,556) Compensated absences (472,134) Other post employment benefits (1,009,632) Accrued interest payable (3,796) Net position of governmental activities 39,287,063 $ See the accompanying notes to the basic financial statements. 16 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2014 Mental General Road Health STPUD Fund Fund Services Act Mitigation REVENUES Taxes 5,963,093 $ - $ - $ - $ Licenses and permits 35,635 1,095 - - Fines, forfeitures and penalties 187,509 825 - - Use of money and property 37,022 4,519 15,782 4,420 Intergovernmental 842,611 1,091,808 1,127,136 - Charges for services 353,599 307,602 - 154,438 Other revenues 74,782 12,164 4,076 - Total Revenues 7,494,251 1,418,013 1,146,994 158,858 EXPENDITURES Current: General government 2,574,012 - - - Public protection 4,147,327 - - - Public ways and facilities - 1,288,075 - - Health and sanitation 134,760 - 962,887 - Public assistance 500,141 - - - Education 295,392 - - - Recreation and cultural services 32,583 - - - Capital outlay 58,410 - - - Debt service: Principal - - - - Interest and issuance cost - - - - Total Expenditures 7,742,625 1,288,075 962,887 - Excess (Deficiency) of Revenues Over (Under) Expenditures (248,374) 129,938 184,107 158,858 OTHER FINANCING SOURCES (USES) Issuance of capital lease financing - - - - Transfers in 1,366,176 - - - Transfers out (745,538) - - (2,407,639) Total Other Financing Sources and Uses 620,638 - - (2,407,639) NET CHANGES IN FUND BALANCES 372,264 129,938 184,107 (2,248,781) Fund Balances, Beginning of Year 5,691,924 1,732,623 5,824,566 3,282,992 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 6,064,188 $ 1,862,561 $ 6,008,673 $ 1,034,211 $ See the accompanying notes to the basic financial statements. 17 ---PAGE BREAK--- Alpine County Realignment Government Other Fund Center Governmental Total REVENUES - $ - $ 69,993 $ 6,033,086 $ Taxes - - 78,777 115,507 Licenses and permits - - 1,755 190,089 Fines, forfeitures and penalties 11,768 - 33,637 107,148 Use of money and property 1,663,886 - 3,754,097 8,479,538 Intergovernmental - - 828,636 1,644,275 Charges for services - - 12,163 103,185 Other revenues 1,675,654 - 4,779,058 16,672,828 Total Revenues EXPENDITURES Current: - - 83,730 2,657,742 General government 787 - 518,191 4,666,305 Public protection - - 694,321 1,982,396 Public ways and facilities - - 1,618,139 2,715,786 Health and sanitation - - 1,197,233 1,697,374 Public assistance - - 9,506 304,898 Education - - - 32,583 Recreation and cultural services - 4,444,881 562,213 5,065,504 Capital outlay Debt service: - - 64,924 64,924 Principal - - 47,372 47,372 Interest and issuance cost 787 4,444,881 4,795,629 19,234,884 Total Expenditures Excess (Deficiency) of Revenues Over 1,674,867 (4,444,881) (16,571) (2,562,056) (Under) Expenditures OTHER FINANCING SOURCES (USES) - - - - Issuance of capital lease financing - 4,224,494 1,454,489 7,045,159 Transfers in (783,746) - (3,108,236) (7,045,159) Transfers out (783,746) 4,224,494 (1,653,747) - Total Other Financing Sources and Uses 891,121 (220,387) (1,670,318) (2,562,056) NET CHANGES IN FUND BALANCES 3,719,522 (17,397) 6,741,445 26,975,675 Fund Balances, Beginning of Year - - (4,583) (4,583) Prior period adjustments 4,610,643 $ (237,784) $ 5,066,544 $ 24,409,036 $ FUND BALANCES, END OF YEAR ---PAGE BREAK--- COUNTY OF ALPINE Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities Governmental Funds For the Year Ended June 30, 2014 Net change to fund balance - total governmental funds (2,562,056) $ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Expenditures for general capital assets, infrastructure, and other related capital asset adjustments 5,435,917 Less: current year depreciation (1,074,304) 4,361,613 Governmental funds report the disposal of assets only to the extent proceeds are received from the disposition. In the statement of activities, a gain or loss is reported for each disposal based on the difference between the proceeds and the book value of the capital assets being disposed. This is the total of construction in progress projects that either did not meet the criteria for capitalization or were abandoned during the fiscal year. (1,043,744) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds (unavailable revenues). Revenue in the statement of activities is not limited by availability, so certain revenues have been reduced by the amounts that were unavailable at the beginning of the year and increased by the amounts that were unavailable at the end of the year. (231,535) Issuance of long-term debt provides current financial resources to governmental funds. Repayment of debt principal is an expenditure in the governmental funds. Neither has any effect on net position. Capital lease repayments 64,924 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Change in accrued interest on long-term debt 202 Change in compensated absences 22,886 Change in estimated liability for claims costs (69,590) Change in other post-employment benefits (111,525) (158,027) Change in net position of governmental activities 431,175 $ See the accompanying notes to the basic financial statements. 18 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Net Position Proprietary Funds - Alpine Transit Service June 30, 2014 ASSETS Current Assets: Cash and investments 83,688 $ Interest receivable 47 Total Current Assets 83,735 Non-Current Assets: Equipment, net of accumulated depreciation 18,913 Total Assets 102,648 LIABILITIES Current Liabilities: Accounts payable 157 Accrued salaries and benefits 1,014 Due to other funds 1,627 Unearned revenue 121,050 Total Current Liabilities 123,848 NET POSITION Net investment in capital assets 18,913 Unrestricted (40,113) Total Net Position (21,200) $ See the accompanying notes to the basic financial statements. 19 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2014 OPERATING REVENUES Passenger fares 7,100 $ OPERATING EXPENSES Salaries and benefits 37,312 Adminstrative 16,987 Fuel and vehicle maintenance 8,513 Insurance 3,582 Depreciation 7,565 Total Operating Expenses 73,959 OPERATING INCOME (LOSS) (66,859) NON-OPERATING REVENUES (EXPENSES) Federal transit administration grants 25,982 Local Transportation Fund allocation 33,000 Interest 312 Total Non-Operating Revenues (Expenses) 59,294 CHANGE IN NET POSITION (7,565) Net Position, Beginning of Year (13,635) NET POSITION, END OF YEAR (21,200) $ See the accompanying notes to the basic financial statements. 20 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Cash Flows Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2014 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 7,100 $ Cash paid to employees (37,155) Cash paid to suppliers for goods and services (28,181) Net Cash Used by Operating Activities (58,236) CASH FLOWS FROM INVESTING ACTIVITIES Interest allocations from pooled investments 359 Net Cash Provided by Investment Activities 359 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 13,542 Net Cash Provided by Noncapital Financing Activities 13,542 NET INCREASE IN CASH AND CASH EQUIVALENTS (44,335) Cash and Cash Equivalents, Beginning of Year 128,023 CASH AND CASH EQUIVALENTS, END OF YEAR 83,688 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (66,859) $ Adjustment to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 7,565 Changes in assets and liabilities: Accounts payable (726) Accrued salaries and benefits 157 Interfund payables 1,627 NET CASH USED BY OPERATING ACTIVITIES (58,236) $ See the accompanying notes to the basic financial statements. 21 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Fiduciary Net Position June 30, 2014 Investment Agency Trust Funds ASSETS Cash and investments 6,331,804 $ 462,741 $ Interest receivable 3,212 13,640 Total Assets 6,335,016 476,381 LIABILITIES Apportionments payable - - Agency obligations - 476,381 Total Liabilities - 476,381 NET POSITION Net position held in trust for investment pool participants 6,335,016 - Total Net Position 6,335,016 $ - $ See the accompanying notes to the basic financial statements. 22 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2014 Investment Trust ADDITIONS Contributions to investment pool 5,075,200 $ Investment earnings 16,709 Total Additions 5,091,909 DEDUCTIONS Distributions from pooled investment accounts 4,865,446 Total Deductions 4,865,446 CHANGE IN NET POSITION 226,463 Net Position, Beginning of Year 6,108,553 NET POSITION, END OF YEAR 6,335,016 $ See the accompanying notes to the basic financial statements. 23 ---PAGE BREAK--- 24 NOTES TO FINANCIAL STATEMENTS The notes provided in the financial section of this report are considered an integral and essential part of adequate disclosure and fair presentation of this report. The notes include a summary of significant accounting policies for the County, and other necessary disclosures of pertinent matters related to the financial position of the County. The notes express significant insight to the financial statements and are conjunctive to understanding the rationale for presentation of the financial statements and information contained in this document. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 25 Note 1: Summary of Significant Accounting Policies The accounting methods adopted by the County conform to accounting principles generally accepted in the United States of America as applied to governmental entities. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the County’s accounting policies are described below. A. Description of the Reporting Entity The County is a legal subdivision of the State of California whereby it can exercise the powers specified by the constitution and statutes of the State of California. The County operates under an Administrator-Board of Supervisors form of government with legislative and executive control held by an elected five member Board of Supervisors. Major services provided by the County to its citizens include: public protection, public ways and facilities, health and sanitation, public assistance, education, culture and recreation and general services. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable under the criteria set by Governmental Accounting Standards Board (GASB) Statement No. 61, “Financial Reporting Entity: Omnibus”. Reporting for component units on the County’s financial statements can be blended or discretely presented. Blended component units, although legally separate entities, are, in substance, part of the government’s operations. Blended component units are an extension of the County and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the basic financial statements to emphasize they are legally separate from the County. Each component unit has a June 30th year-end. Blended Component Units. The County Service Area #1 and Alpine County Local Transportation Commission are districts governed by the County Board of Supervisors. The component unit’s governing body is substantially the same as the primary government; hence, these units are presented by blending them with the primary government. Financial statements for the Alpine County Local Transportation Commission can be obtained at P.O. Box 266, Markleeville CA 96120. Discretely Presented Component Units. The nine members of the Alpine County Children and Families Commission are appointed by the Alpine County Board of Supervisors and may be removed at any time without cause. Because the County Board of Supervisors can impose their will on the Commission, the Commission is considered a component unit of the County. The Commission is discretely presented because the two boards are not substantially the same and their operations are separate. Separately issued financial statements may be obtained by contacting the Commission at 100 Foothill Road, Suite D-3, Markleeville, California 96120. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 26 B. Basis of Presentation Government-Wide Financial Statements The statement of net position and statement of activities display information about the primary government (the County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the County. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties. The statement of activities presents a comparison between program expenses and program revenues for each segment of the business-type activities of the County and for each function of the County’s governmental activities. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. Fund Financial Statements The fund financial statements provide information about the County’s funds, including fiduciary funds and blended component units. Separate statements for each fund category – governmental, proprietary and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds. Proprietary fund operating revenues include charges for the goods or services provided by the fund as part of its principal activity and result from exchange transactions. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses include the costs of providing services and delivering goods. All other expenses not meeting this definition are reported as nonoperating expenses. The County reports the following major governmental funds: The General Fund is the County’s primary operating fund and is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that are not accounted for through other funds. For the County, the General Fund includes such activities as public protection, public ways and facilities, health and sanitation, public assistance, education, recreation services and general services. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 27 The Road Fund was established to provide for maintenance and construction of roadways. Revenues consist primarily of the County’s share of state highway use tax and are supplemented by federal and state funds. The Mental Health Services Act Fund was established to account for Proposition 63 passed in 2004 to expand and further develop mental health services in the County. The STPUD Mitigation Fund was established to account for mitigation/compensation fees received annually from the South Tahoe Public Utility District. The Realignment Fund was established to account for State realigned revenues generated from sales taxes and vehicle license fees that are restricted to expenditure for specific social, health, mental health and public safety programs. The Alpine County Government Center Fund was established to account for financial resources used for the construction and renovation of facilities and buildings that include the Alpine County Government Center, Community Development, Courthouse, Library, Archives and District Attorney. The County reports its only enterprise fund described below as a major fund: The Alpine Transit Service Fund provides public transit services in the County. The County reports the following fiduciary fund types: The Investment Trust Fund accounts for the assets of legally separate entities, which invest in the County Treasurer’s investment pool. These entities include one school district and several special districts governed by local boards. These funds represent the assets, primarily cash and investments, and the related liability of the County to disburse these monies on demand. The Agency Funds account for assets held by the County as an agent for various individuals or other local governments. These funds are custodial in nature and do not involve measurement of results or operations. Such funds have no equity accounts since all assets are due to individuals or entities at some future time. C. Basis of Accounting The government-wide, proprietary and investment trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales taxes are recognized when the underlying transactions take ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 28 place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. Governmental funds financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. Property taxes, sales and other taxes, interest, certain state and federal grants and charges for services are accrued when their receipt occurs within sixty days of the end of the fiscal year so as to be both measurable and available. Licenses, permits, fines, forfeitures, and other revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Agency funds apply the accrual basis of accounting but do not have a measurement focus. D. Cash and Cash Equivalents For purposes of the accompanying statement of cash flows, the enterprise fund considers all highly liquid investments with a maturity of three months or less when purchased and their equity in the County Treasurer’s investment pool to be cash equivalents. E. Investments California Government Code Section 53600, et seq., authorizes the County to invest in obligations of the U.S. Treasury, agencies and instrumentalities, obligations of the state or any local agency of the State of California, bankers’ acceptances, commercial paper, negotiable certificates of deposits, repurchase agreements or reverse repurchase agreements, medium-term notes issued by corporations and the State of California Local Agency Investment Fund. The County Treasurer may also invest in certain open-ended mutual funds permitted by the Government Code. The County follows the practice of pooling cash and investments of all funds with the County Treasurer. The Alpine County Treasury Pool (Pool) is not registered as an investment company with the Securities and Exchange Commission (SEC) nor is it an SEC Rule 2a7-like pool. Interest earned on pooled investments is apportioned quarterly to certain participating funds based upon each fund’s average deposit balance with all remaining interest deposited in the County’s General Fund. Investments are stated at fair value in the statement of net position and balance sheet and the corresponding changes in the fair value of investments are recognized in the year in which the change occurred. Except for the County’s investment in the California Local Agency Investment Fund (LAIF), fair value is determined annually based on quoted market prices received from the securities custodian. The County’s investment in LAIF is determined on an amortized basis which approximates fair value. The value of the participants’ pool shares is based on amortized cost, which is different than fair value. The County ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 29 has not provided nor obtained any legally binding guarantees during the year ended June 30, 2014, to support the value of pool shares. F. Inventory Inventories are valued at cost on a moving average basis. The cost is recorded as expenditures at the time individual inventory items are consumed. Inventories reported in the governmental funds are equally offset by a nonspendable fund balance amount, which indicates that inventories do not represent expendable available financial sources. Inventories in the Road fund, a major special revenue fund, consist of road supplies, fuel and various consumable items. G. Prepaid Expenses/Items and Deposits Payments made for services that will benefit periods beyond June 30, 2014, are recorded as prepaid expenses/items. Payments made in advance of the receipt of goods or property is recorded as deposits. In the fund financial statements, prepaid items and deposits are offset by a corresponding nonspendable portion of fund balance to indicate they are not available for appropriation and are not expendable available financial resources. H. Capital Assets Capital assets include land, land improvements, buildings and improvements, machinery and equipment and infrastructure. Assets that are purchased or constructed are reported at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair market value on the date contributed. Capital outlays are recorded as expenditures in the governmental funds and as additions to capital assets in the proprietary and the government-wide financial statements, in accordance with the County’s capitalization policy. The County defines capital assets as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of one year. Capital assets used in operations are depreciated or amortized (assets under capital leases) using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the government-wide statements and proprietary funds. The estimated useful lives are as follows: Infrastructure (roads and bridges) 40 to 60 years Land improvements 15 years Structures and improvements 15 to 40 years Machinery and equipment 3 to 7 years ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 30 I. Compensated Absences County employees are entitled to certain compensated absences based on their length of employment and position held. Vacation pay is subject to certain maximum accumulations and is payable upon separation from County employment. Employees accrue vacation at the rate of 10 to 20 days per year dependent on length of employment. Unused vacation time accrued is payable at 100 percent of the accrual at separation of employment up to a maximum of 30 days. Sick leave is accrued at the rate of 12 days per year. At termination, accrued sick leave is payable at 20 percent to those with fewer than five years of service and 25 percent to those with more than five years of service. The County accounts for compensated absences (unpaid vacation, sick leave and compensatory time) in accordance with GASB Statement No. 16. Because vacation, sick leave and other compensated absence balances do not require the use of current financial resources, no liability is recorded within the governmental funds. In governmental funds, compensated absences are recorded as expenditures in the year paid. The liability for compensated absences is reflected in the government-wide statement of net position in the period that the benefits accrue to employees. J. Deferred Outflows / Inflows of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. As of June 30, 2014, the County had no deferred outflows of resources. In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The County had deferred inflows of resources consisting of unavailable revenues reported under the modified accrual basis of accounting in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, intergovernmental, and other sources as appropriate. The amounts are deferred and recognized as revenues in the period the amounts become available. K. Property Tax Revenue Property taxes, including tax rates, are regulated by the State and are administered locally by the County. The County is responsible for assessing, collecting and distributing property taxes in accordance with state law. Property taxes attach as an enforceable lien at January 1. Taxes are levied on July 1 and are payable in two installments, December 10 and April 10. All general property taxes are allocated to the various taxing entities per the legislation implementing Article XIII of the California Constitution (commonly referred to as Proposition 13). General property taxes are based either on a flat one percent rate applied to the 1975/1976 full value of the property or on one percent of the sales price of the property on sales transactions and construction after the 1975/1976 valuation. Taxable values on properties (exclusive of increases related to sales and construction) can rise at a ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 31 maximum rate of two percent per year. The method of allocation used by the County is subject to review by the State of California. The County recognizes property tax revenues in the period for which the taxes are levied. L. Interfund Transactions Interfund transactions are reflected as loans, services provided, reimbursements or transfers. Loans reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” the current portion of interfund loans) or “advances to/from other funds the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance amount in the applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or business-type activities are netted as part of the reconciliation to the government-wide presentation. M. Net Position The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as follows: Net Investment in Capital Assets – This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. Restricted Net position – This category presents external restrictions imposed by creditors, grantors, contributors or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted Net position – This category represents net position of the County, not restricted for any project or other purpose. When both restricted and unrestricted net position is available, the County considers restricted net position to have been depleted before unrestricted net position is applied. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 32 N. Fund Balance In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the County is bound to honor constraints on how specific amounts can be spent. Nonspendable fund balance – Amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to remain intact. Restricted fund balance – Amounts with constraints placed on their use that are externally imposed by creditors, grantors, contributors, or laws and regulations of other governments. Constraints may also be imposed by law through constitutional provisions or enabling legislation. Committed fund balance – Amounts that can only be used for specific purposes determined by formal action of the County’s highest level of decision-making authority (the Board of Supervisors) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. Assigned fund balance – Amounts that are constrained by the County’s intent to use resources for specific purposes. The intent can be established at either the highest level of decision-making or by a body or an official designated for that purpose. This is also the classification for residual fund balance in all governmental funds other than the General Fund. Unassigned fund balance – The residual classification for the County’s General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if the expenditures incurred for specific purposes exceed the amounts restricted, committed or assigned to those purposes deficit fund balance). The Board of Supervisors establishes, modifies or rescinds fund balance commitments and assignments by passage of an ordinance or resolution and through adoption of the budget and subsequent budget amendments that occur throughout the year. When both restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, followed by committed, assigned and unassigned resources as they are needed. O. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 33 P. Future Pronouncements The County is currently analyzing its accounting and financial reporting practices to determine the potential impact on the financial statements of the following recently issued GASB Statements: In June 2012, the GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of GASB Statement No. 27. The objective of this statement is to improve accounting and financial reporting by state and local governmental pensions. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2015. Management has not determined the effect of this statement. In January 2013, the GASB issued Statement No. 69, Government Combinations and Disposals of Government Operations. The objective of this statement is to improve accounting and financial reporting related to government combinations and disposals of government operations. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2015. Management has determined that this statement is unlikely to have a significant impact on the County’s financial statements. In April 2013, the GASB issued Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. The objective of this statement is to improve accounting and financial reporting by state and local governments that extend and receive nonexchange financial guarantees. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2015. Management has not determined the effect of this statement. Note 2: Cash and Investments At June 30, 2014, total County cash and investments were as follows: Cash: Cash on hand 68 $ Imprest accounts 355 Deposits 501,408 Total Cash 501,831 Investments: In Treasurer's Pool 29,513,180 Total Cash and Investments 30,015,011 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 34 Total cash and investments at June 30, 2014 were presented on the County’s financial statements as follows: Primary government 23,220,466 $ Investment trust fund 6,331,804 Agency funds 462,741 Total Cash and Investments 30,015,011 $ The investment pool includes both voluntary and involuntary participation from external entities. The State of California statutes require certain districts and other governmental entities to maintain their cash surplus with the County Treasurer. Investments The County’s cash and investments are invested by the County Treasurer. The Treasury Oversight Committee has oversight for all monies deposited into the Treasury Pool. Such amounts are invested in accordance with investment policy guidelines established by the County Treasurer and reviewed and approved by the Board of Supervisors. The objectives of the policy are, in order of priority, safety of principal, liquidity and yield. The policy addresses the soundness of financial institutions in which the County will deposit funds, types of investment instruments as permitted by California Government Code and the percentage of the portfolio that may be invested in certain instruments. The table below identifies the investment types that are authorized for the County by the California Government Code or the County’s investment policy, where more restrictive. The table also identifies certain provisions of the County’s investment policy that address interest rate risk, credit risk and concentration risk. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio in One Issuer Local Agency Bonds 1 Year 5% None U.S. Treasury Obligations 5 Years None None U.S. Agency Obligations 5 Years None None Collateralized Bank Deposits 1 Year 10% None Money Market Mutual Funds N/A 15% 10% Notes Issued by Corporations Under FDIC, TLGP 5 Years None None Local Agency Investment Fund (LAIF) N/A None None ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 35 At June 30, 2014, the County had the following investments: Weighted Fair Average Maturity Interest Rates Maturities Par Value (Days) Investments in Investment Pool: U.S. Treasuries 0.250% - 2.50% 8/31/14 - 11/30/16 1,590,000 $ 1,600,244 $ 475 Federal Agency Obligations 0.430% - 3.85% 7/28/14 - 3/9/18 4,830,000 4,853,024 677 Money Market Mutual Funds Variable On Demand 19,555 19,555 0 LAIF Variable On Demand 23,040,357 23,040,357 0 29,479,912 $ 29,513,180 $ 139 A copy of the County investment policy is available upon request from the Alpine County Finance Department at P.O. Box 266, Markleeville CA 96120 or by calling (530) 694-2284. Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The general rule is the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The County manages its exposure to declines in fair value by purchasing a combination of shorter term and longer term investments and by timing maturities to provide the necessary cash flow and liquidity needed for operations. The County monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity (WAM) of its portfolio. At June 30, 2014, the County’s portfolio WAM associated with the investment pool was 139 days. Credit Risk – Generally, custodial credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. It is the County’s policy to purchase investments meeting ratings requirements established by the California Government Code. Concentration of Credit Risk – State law limits investments in money market mutual funds, collateralized bank deposits and local agency bonds to no more than 15%, 10% and respectively, of the investment pool at the time of purchase. State law also limits investments in any one money market mutual fund to no more than 10% of the investment pool at the time of purchase. The County’s investment policy adheres to these limitations established by California Government Code. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 36 The following is a summary of the credit quality distribution and concentration of credit risk by investment type as a percentage of the County’s Investment Pool’s fair value at June 30, 2014. Credit Rating % Investments In Pool Moody's/S&P/Finch Holdings Federal Agency Obligations Aaa/AA+/AAA 16.44% U.S. Treasuries Aaa/AA+/AAA 5.42% Money Market Mutual Funds Aaa/AAA/AAA 0.07% LAIF Not Rated 78.07% 100.00% Custodial Credit Risk – The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. At year end, the County’s investment pool had no securities exposed to custodial credit risk. Investment in the Local Agency Investment Fund The County Treasurer’s Pool maintains an investment in the State of California Local Agency Investment Fund (LAIF). LAIF is part of the Pooled Money Investment Account (PMIA), an investment pool consisting of funds held by the State in addition to those deposited in LAIF. All PMIA funds are managed by the Investment Division of the State Treasurer’s Office. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California Government Code. Participants in the pool include voluntary and involuntary participants, such as special districts and school districts for which there are legal provisions regarding their investments. The Local Investment Advisory Board has oversight responsibility for LAIF. This Board consists of five members as designated by State Statute. At June 30, 2014, the County’s investment position in LAIF was $23,040,357, which approximates fair value and is the same as the value of the pool shares which is determined on an amortized cost basis. Withdrawals from LAIF are done on a dollar to dollar basis. The total amount invested by all public agencies in PMIA on that day was $64.8 billion. Of that amount, 1.86% was invested in structured notes and asset-backed securities with the remaining 98.14% invested in other non-derivative financial products. The average maturity of PMIA investments was 232 days as of June 30, 2014. County Investment Pool The County’s Investment Pool includes amounts held for its one school district whose participation in the Treasury Pool is mandated by State code. At June 30, 2014, involuntary participants of the County’s investment pool totaled $6,239,481. The County investment pool is not registered with the Securities and Exchange Commission as an investment company. Investments made by the Treasurer are regulated by the California Government Code and by the County’s investment policy. The County has established a treasury oversight committee to monitor and review the management of public funds maintained in the investment pool in accordance with Article 6, Section 27131 of the California Government Code. The oversight committee and the Board of Supervisors review and approve the investment policy annually. The County Treasurer prepares and submits a comprehensive investment report to the members of the ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 37 oversight committee and the investment pool participants every month. The report covers the type of investments in the pool, maturity dates, par value, actual costs and fair value. The following represents a condensed statement of net position and changes in net position for the County’s investment pool as of June 30, 2014: Statement of Net Position Net position held for pool participants 30,014,656 $ Equity of internal pool participants 23,682,852 $ Equity of external pool participants 6,331,804 Total Net Position 30,014,656 $ Statement of Changes in Net Position Investment earnings 120,615 $ Investment expenses (25,835) Net withdrawals by pool participants (731,072) Decrease in Net Position (636,292) Net Position at July 1, 2013 30,650,948 Net Position at June 30, 2014 30,014,656 $ Note 3: Interfund Transactions Interfund Receivables and Payables Interfund receivables and payables result from the time lag between the dates that transactions are recorded in the accounting system and the date payments between funds are made. Interfund receivables and payables also result from short-term loans to participants in the County’s Investment Pool whose investment accounts are deficit. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 38 The composition of interfund balances classified as due to / from other funds as of June 30, 2014 is as follows: Receivable Fund Payable Fund Amount General Fund Road Fund 2,981 $ Realignment Fund 145,718 Alpine County Government Center 21,944 Transit 540 Other Governmental Funds 248,194 419,377 Road Fund General Fund 22,591 Mental Health Services Act 558 Transit 1,087 Other Governmental Funds 76,808 101,044 Mental Health Services Act Other Governmental Funds 2,370 Realignment Fund Other Governmental Funds 10,287 Other Governmental Funds General Fund 5,466 Realignment Fund 180,741 Other Governmental Funds 111,910 298,117 831,195 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 39 Transfers Transfers are indicative of funding for capital projects, lease payments for debt service, subsidies of various County operations and re-allocations of special revenues. The following schedules summarize the County’s transfer activity during the fiscal year ended June 30, 2014: Transfers Between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Alpine County Government Center 245,000 $ Other Governmental Funds 500,538 745,538 STPUD Mitigation Alpine County Government Center 2,295,343 Other Governmental Funds 112,296 2,407,639 Realignment Fund General Fund 159,158 Alpine County Government Center 20,000 Other Governmental Funds 604,588 783,746 Other Governmental Funds General Fund 1,207,018 Alpine County Government Center 1,664,151 Other Governmental Funds 237,067 3,108,236 7,045,159 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 40 Note 4: Capital Assets Capital assets activity for the fiscal year ended June 30, 2014 was as follows: Balance Balance July 1, 2013 Additions Retirements Transfers June 30, 2014 Governmental Activities: Total capital assets, not being depreciated Land 1,119,288 $ - $ - $ 101,311 $ 1,220,599 $ Construction in progress 1,541,568 4,910,333 (1,043,744) (1,430,305) 3,977,852 Total capital assets, not being depreciated 2,660,856 4,910,333 (1,043,744) (1,328,994) 5,198,451 Total capital assets, being depreciated Structures and improvements 9,680,510 120,808 - 1,116,402 10,917,720 Equipment 10,038,202 404,776 (69,200) 212,592 10,586,370 Infrastructure 34,694,917 - - - 34,694,917 Total capital assets, being depreciated 54,413,629 525,584 (69,200) 1,328,994 56,199,007 Less accumulated depreciation for: Structures and improvements (3,163,880) (366,543) - - (3,530,423) Equipment (6,478,453) (680,354) 69,200 - (7,089,607) Infrastructure (33,640,649) (27,407) - - (33,668,056) Total accumulated depreciation (43,282,982) (1,074,304) 69,200 - (44,288,086) Total capital assets, being depreciated, net 11,130,647 (548,720) - 1,328,994 11,910,921 Governmental activities capital assets, net 13,791,503 $ 4,361,613 $ (1,043,744) $ - $ 17,109,372 $ Business-type Activities: Total capital assets, being depreciated Equipment 52,955 $ - $ - $ - $ 52,955 $ Total capital assets, being depreciated 52,955 - - - 52,955 Less accumulated depreciation for: Equipment (26,477) (7,565) - - (34,042) Total accumulated depreciation (26,477) (7,565) - - (34,042) Business-type capital assets, net 26,478 $ (7,565) $ - $ - $ 18,913 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 41 Depreciation expense was charged to governmental functions as follows: General government 163,747 $ Public protection 574,245 Public ways and facilities 202,813 Health and sanitation 12,505 Public assistance 73,180 Education 2,238 Recreation and cultural services 45,576 Total depreciation expense - governmental activities 1,074,304 $ Depreciation expense was charged to the business-type activities as follows: Alpine Transit Service 7,565 $ Note 5: Long-Term Liabilities The following is a summary of long-term liabilities activity for the fiscal year ended June 30, 2014: Balance Balance Amounts Due July 1, 2013 Additions Retirements June 30, 2014 Within One Year Governmental Activities: Capital leases payable 1,279,480 $ - $ (64,924) $ 1,214,556 $ 67,382 $ Compensated absences 495,020 224,624 (247,510) 472,134 236,067 Liability for claims costs 378,189 451,284 (381,694) 447,779 447,779 2,152,689 $ 675,908 $ (694,128) $ 2,134,469 $ 751,228 $ The Debt Service Fund is responsible for the payments on the County’s capital lease. Liabilities for compensated absences are generally liquidated by the General Fund and special revenue funds. Claims are paid by the General Fund. Note 6: Capital Lease The County leases certain facilities under a lease obligation accounted for as capital leases where the related facilities will become property of the County when all terms of the lease agreement is met. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 42 The following is a summary of the County’s capital lease agreement as of June 30, 2014: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2014 Alpine County Government Center 3.75% 1,214,556 $ Included in the governmental activities are the following capital asset amounts under capital leases: Accumulated Cost Depreciation Book Value Construction in progress 200,760 $ - $ 200,760 $ Community Dev. building 943,884 11,798 932,086 Sheriff secure storage facility 155,356 1,942 153,414 1,300,000 $ 13,740 $ 1,286,260 $ As of June 30, 2014, future minimum lease payments under capital leases were as follows: Year Ending June 30: 2015 112,296 $ 2016 112,296 2017 112,296 2018 112,296 2019 112,296 2020-2024 561,478 2025-2028 449,183 Total Future Minimum Lease Payments 1,572,141 Less: Interest (357,585) Present Value of Minimum Lease Payments 1,214,556 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 43 Note 7: Net position / Fund Balances Fund balances of governmental funds at June 30, 2014 are as follows: General Road Health STPUD Realignment Government Other Fund Fund Services Act Mitigation Fund Center Governmental Total Nonspendable: Permanent funds - $ - $ - $ - $ - $ - $ 400,000 $ 400,000 $ Deposits 1,215,260 - - - - - - 1,215,260 Prepaid expenses 4,494 - - - - - - 4,494 Inventories - 135,648 - - - - - 135,648 Total Nonspendable 1,219,754 135,648 - - - - 400,000 1,755,402 Restricted: Public protection - - - - 245,690 - 2,041,544 2,287,234 Public ways and facilties - 1,726,913 - - - - 104,804 1,831,717 Health and sanitation - - 6,008,673 - 1,964,170 - 1,527,347 9,500,190 Public assistance - - - - 2,400,783 - - 2,400,783 Capital projects - - - - - - 69,193 69,193 CSA - - - - - - 556,436 556,436 Other 687,595 - - - - - 144,403 831,998 Total Restricted 687,595 1,726,913 6,008,673 - 4,610,643 - 4,443,727 17,477,551 Committed: Capital projects - - - 1,034,211 - - - 1,034,211 Total Committed - - - 1,034,211 - - - 1,034,211 Assigned: General reserve 1,000,000 - - - - - - 1,000,000 Cash flow 263,885 - - - - - - 263,885 Critical services 425,000 - - - - - - 425,000 Capital projects - - - - - - 290,290 290,290 Post-employment benefits 512,268 - - - - - - 512,268 Eliminate projected 2014-15 budgetary deficit 1,113,335 - - - - - - 1,113,335 Other - - - - - - 52,634 52,634 Total Assigned 3,314,488 - - - - - 342,924 3,657,412 Unassigned 842,351 - - - - (237,784) (120,107) 484,460 Total Fund Balances 6,064,188 $ 1,862,561 $ 6,008,673 $ 1,034,211 $ 4,610,643 $ (237,784) $ 5,066,544 $ 24,409,036 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 44 Net position from governmental activities as of June 30, 2014, was restricted for the following purposes: Capital projects 69,193 $ Public protection 2,287,234 Public ways and facilities 1,967,365 Health and sanitation 9,500,190 Public assistance 2,398,285 County Service Area #1 556,436 Other: Trust for Public Land 452,634 Administrative Services 146,901 17,378,238 $ Deficit fund balances / net position as of June 30, 2014, were as follows: Governmental Funds: Alpine County Government Center 237,784 $ Markleeville Pipeline Prop. 50 Grant 1,982 County Road Improvement 17,776 State OES Grants 6,785 District Attorney Victim Witness Grant 22,619 Alpine County Transportation Commission 70,945 Proprietary Funds Alpine Transit Service 21,200 Fund deficits in the governmental funds result from the deferral of revenues collected more than sixty days after the end of the fiscal year. The collection of receivables in the next fiscal year is expected to eliminate the fund deficit balances. The deficit net position balance in the Alpine Transit Service fund results from insufficient revenues in a prior fiscal year. Contributions in the future from other sources will eliminate the deficit balance. Restatements of Fund Balance / Net Position Adjustments resulting from errors or a change to comply with provisions of the accounting standards are treated as adjustments to prior periods. Accordingly, the County reports these changes as restatements of beginning fund balance / net position. Restatements as of the beginning of the fiscal year were made to correct revenues received in the current year that should have been recognized in a previous fiscal year. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 45 The impact of the restatements on the fund balances / net position as previously reported is presented below: Government-Wide Fund Statements Statements Other Governmental Governmental Activities Funds Fund balance / net position, June 30, 2013, as previously reported 38,860,471 $ 6,741,445 $ Restatements and corrections: Correct prior year expenditures (4,583) (4,583) Total restatements and corrections (4,583) (4,583) Fund balances / net position, July 1, 2013, as restated 38,855,888 $ 6,736,862 $ Note 8: County Employees Retirement Plan (Defined Benefit Pension Plan) Plan Description The County of Alpine contributes to the California Public Employees Retirement System (PERS), a cost- sharing multiple-employer public employee retirement system that acts as a common investment and administrative agent for participating public entities within the State of California. PERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members and beneficiaries. Benefit provisions and all other requirements are established by statute. Copies of PERS annual financial report may be obtained from their executive office – Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811. The California Public Employees’ Pension Reform Act of 2013 (PEPRA) was signed into law by Governor Jerry Brown in early September with an effective date of January 1, 2013. The new law is complex and broad-reaching. All employees hired after January 1, 2013, with the exception of employees who are eligible for reciprocity with another qualified California retirement system and certain other limited exceptions, are subject to the requirements of PEPRA which include new benefit formulas, final compensation period calculations and new contribution requirements. Funding Policy Miscellaneous plan members are required to contribute 7 percent of their annual covered salary. Safety plan members are required to contribute 9 percent of their annual covered salary. Members subject to PEPRA are required to contribute 6.5% for miscellaneous plan members and 12.25% for safety plan members. The County is required to contribute the actuarial determined remaining amounts necessary to fund the benefits of its members. The County has committed to contribute a portion of the required employee contribution in addition to its own required contributions. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 46 contribution rate for fiscal 2013/2014 was 16.302 percent for miscellaneous employees and 35.752 percent for safety employees. For those members subject to PEPRA, the required employer contribution rate for fiscal 2013/2014 was limited to 6.7 percent for miscellaneous employees and 12.25 percent for safety employees. The contribution requirements of the plan are established by State statute and the employer contribution rate is established and may be amended by PERS. The County is required to contribute the remaining amounts necessary to fund the benefits of its members using the actuarial basis adopted by the PERS Board of Administrators. Annual Pension Cost For fiscal year 2013/2014, the County’s annual pension cost of $521,732 for the miscellaneous plan, $395,394 for the safety plan and $19,134 under PEPRA was equal to the County’s required and actual contributions. The required contribution was determined as part of the June 30, 2011 actuarial valuation for the cost-sharing pools for Alpine’s miscellaneous and safety plans. The initial PEPRA contribution rates were determined by PERS and are effective until June 30, 2015. PEPRA contribution rates will be revised beginning with the June 30, 2013 actuarial valuation which will set the contribution rates beginning July 1, 2015. The table below presents three year trend information. Annual Percentage Net Pension of APC Pension Fiscal Year Ending: Cost (APC) Contributed Obligation Miscellaneous Plan: 6/30/2012 463,416 $ 100% - $ 6/30/2013 509,234 100% - 6/30/2014 521,732 100% - Safety Plan: 6/30/2012 374,113 $ 100% - $ 6/30/2013 398,531 100% - 6/30/2014 395,394 100% - PEPRA: 6/30/2013 2,488 100% - 6/30/2014 19,134 100% - Note 9: Other Post-Employment Benefits (OPEB) Plan Description The County provides retiree healthcare benefits to qualifying employees retiring directly from the County. Benefits include medical, dental and vision plan coverage and the benefit level is determined by date of hire and length of service. Benefits are provided through the County of Alpine Retiree Healthcare plan, a single-employer defined benefit healthcare plan administered by the County. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 47 Retirees not yet eligible for Medicare supplement coverage receive the same coverage and the same cost sharing formula as active employees until age 65. After becoming eligible for Medicare, retirees and/or their dependents who wish to retain coverage must enroll in an available plan offered by AARP. The County pays a specific dollar amount toward the cost of retiree coverage and, depending on the date of employment, may also pay a portion of the coverage for the retiree’s spouse or eligible dependents. Funding Policy The contribution requirements of the plan members and the County are established and may be amended by the County. The County is not pre-funding the plan. Annual OPEB Cost and Net OPEB Obligation The County’s OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC). The ARC is an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The County ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize the unfunded actuarial liability over a period of 30 years. The following table shows the County’s annual OPEB cost for the year, the amount actually contributed to the plan, and the resulting net OPEB obligation. Annual required contribution 536,961 $ Interest on prior year net OPEB obligation 35,924 Amortization of prior year net OPEB obligation (39,268) Annual OPEB Cost 533,617 Contributions made (422,092) Increase in net OPEB obligation 111,525 Net OPEB obligation, beginning of year 898,107 Net OPEB obligation, end of year 1,009,632 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 48 The County’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB obligation for the current and prior two years are as follows: Net Percentage Net Year Pension Annual Annual of Annual Pension Ended Obligation OPEB Actual OPEB Cost Obligation June 30: Beginning of Year Cost Contributions Contributed End of Year 2012 655,386 $ 484,285 $ 347,772 $ 71.81% 791,899 $ 2013 791,899 502,038 395,830 78.84% 898,107 2014 898,107 533,617 422,092 79.10% 1,009,632 Funded Status and Funding Progress The funded status of the plan as of January 1, 2014, the plan’s most recent actuarial valuation date, was as follows: Actuarial accrued liability (AAL) 7,919,738 $ Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 7,919,738 $ Funded ratio (actuarial value of plan assets / AAL) 0.00% Covered payroll (active plan members) 4,560,109 $ UAAL as a percentage of covered payroll 173.67% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the basic financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 49 to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2014 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 4.0 percent investment rate of return (net of administrative expenses). Salary increases were estimated at 3.25 percent per year. Information on mortality, turnover and retirement rates was based on CalPERS public agency data. Healthcare costs were forecasted to increase by 8.5 percent in 2016, then by ½ percent less each year until 2023 at which time increases would level off at 5 percent per year thereafter. The actuarial value of assets is equal to the market value. The UAAL is being amortized as a level percentage of projected payrolls over 30 years on a closed basis. The remaining amortization period at January 1, 2014 was 26 years. Note 10: Risk Management The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The County participates in a joint powers agreement established in 1980 to provide coverage for workers’ compensation and general liability exposures and to pay for the administration of the program. The Joint Powers Agreement established for its members the Trindel Insurance Fund (Trindel). The agreement for the formation of Trindel provides that the system will be self-sustaining through member premiums and will reinsure through a commercial company for claims in excess of self-insured retention. Trindel retains a self-insured retention of $125,000 for workers’ compensation and $100,000 for general liability. Above the self-insured retention, excess insurance coverage is up to a limit of $25 million for both programs. Trindel Insurance Fund is classified as a claims-servicing or account pool, wherein the County retains the risk of loss and is considered self-insured with regard to liability coverage for general and property liability, workers compensation and medical malpractice. The County currently reports all of its risk management activities in its General Fund. Premiums due to Trindel are reported when incurred. Settled claims resulting from risks have not exceeded the commercial insurance coverage in any of the past fiscal years. The County holds a deposit with Trindel Insurance from which claims are paid. At June 30, 2014, the balance of the deposit was $1,215,260. Each member of Trindel pays an annual premium to the insurance system which is evaluated each year based on the number of personnel, estimated payroll and an experience factor. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2014 50 Changes in the balance of claims liability during the fiscal years ended June 30, 2014 and 2013 were as follows: 2014 2013 Unpaid claims, beginning of year 378,189 $ 351,956 $ Current year claims (including incurred but not reported) 451,284 398,497 Claims payments and changes in estimates (381,694) (372,264) Unpaid claims, end of the year 447,779 $ 378,189 $ Note 11: Commitments and Contingencies Claims and Judgments The County has received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material. Litigation The County is a party to several claims and actions pending. None of these claims are reflected in these financial statements. Legal counsel believes that none of the pending claims or lawsuits, either separately or in the aggregate, will have a material financial impact on the financial statements. Construction Commitments At June 30, 2014, the County had ongoing construction commitments that totaled approximately $643,000. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2014 51 Schedule of Funding Progress – Retirement Plan Information for the individual plans with less than 100 employees is no longer available. Information is available on a pooled-basis only and can be obtained from CalPERS, 400 Q Street, Sacramento, CA 95814. Schedule of Funding Progress – Retiree Healthcare Plan Entry Age Normal Actuarial Unfunded Annual UAAL as Valuation Accrued Value of (Overfunded) Funded Covered a % of Date Liability Assets Liability Ratio Payroll Payroll January 1, 2008 8,364,946 $ - $ 8,364,946 $ 0.00% 4,380,489 $ 190.96% January 1, 2011 7,146,425 - 7,146,425 0.00% 3,809,470 187.60% January 1, 2014 7,919,738 - 7,919,738 0.00% 4,560,109 173.67% ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule General Fund Variance with For the Year Ended June 30, 2014 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 5,691,924 $ 5,691,924 $ 5,691,924 $ - $ RESOURCES (inflows): Taxes 5,206,000 5,206,000 5,963,093 757,093 Licenses and permits 33,255 33,255 35,635 2,380 Fines, forfeitures and penalties 22,050 22,050 45,283 23,233 Use of money and property 30,220 30,220 34,510 4,290 Intergovernmental 1,059,686 1,103,689 842,611 (261,078) Charges for services 493,195 512,064 602,906 90,842 Other revenues 31,760 40,760 74,782 34,022 Transfers from other funds 1,201,207 1,403,883 1,366,190 (37,693) Amounts Available for Appropriation 13,769,297 14,043,845 14,656,934 613,089 CHARGES TO APPROPRIATIONS (outflows): General government: Board of Supervisors 452,387 452,387 409,169 43,218 Personnel 121,233 121,233 74,489 46,744 Auditor-Controller 374,843 374,843 343,321 31,522 OMB 87 Central Services 140,217 163,217 117,120 46,097 General Central Services 32,600 32,600 26,803 5,797 Information Technology 172,107 183,957 151,069 32,888 Treasurer-Tax Collector 211,615 211,615 204,553 7,062 Assessor 304,454 304,454 287,581 16,873 Elections 20,632 24,507 17,862 6,645 Buildings & Grounds 519,542 517,442 477,989 39,453 Risk Management 72,025 72,025 42,131 29,894 Retiree Benefits 379,615 379,615 356,330 23,285 Legal Counsel 197,400 197,400 184,584 12,816 Total General Government 2,998,670 3,035,295 2,693,001 342,294 Public protection: County Clerk 228,890 228,890 220,237 8,653 Recorder 92,544 92,544 88,580 3,964 Surveyor / Engineer 20,000 20,000 7,487 12,513 Grand Jury 8,841 8,841 5,490 3,351 District Attorney 264,101 264,101 233,932 30,169 Public Defender 70,000 70,000 37,462 32,538 Sheriff / Coroner 2,768,668 2,839,638 2,727,710 111,928 Jail 55,000 55,000 27,552 27,448 Sheriff Grants 475,888 656,367 428,126 228,241 Communications 152,900 128,900 121,664 7,236 continued 52 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund Variance with For the Year Ended June 30, 2014 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Probation 85,013 91,097 89,186 1,911 Bear Valley Fire Department 43,718 56,608 42,934 13,674 Kirkwood Fire Department 12,500 12,500 - 12,500 East Slope Fire / EMS 218,783 258,362 240,220 18,142 Agricultural Commission 13,775 13,775 13,727 48 Planning Department 148,292 148,292 110,158 38,134 Local Agency Formation 2,179 2,179 758 1,421 Total Public Protection 4,661,092 4,947,094 4,395,223 551,871 Health and sanitation: County Emergency Services 89,000 89,000 83,321 5,679 Kirkwood EMS 18,338 18,338 2,784 15,554 Bear Valley EMS 13,587 13,587 12,521 1,066 Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 13,070 13,070 13,468 (398) Total Health and Sanitation 155,859 155,859 133,958 21,901 Public assistance: Community Development 454,344 454,344 440,366 13,978 Social Services Assistance 98,350 98,350 59,399 38,951 General Relief 3,750 3,750 375 3,375 Total Public Assistance 556,444 556,444 500,140 56,304 Education: Superintendent of Schools 57,482 57,482 56,703 779 Library 255,243 257,795 238,688 19,107 Total Education 312,725 315,277 295,391 19,886 Recreation and cultural services: Museum 33,063 33,063 32,583 480 Transfers to other funds: General Contribution 600,081 634,831 372,054 262,777 Total Charges to Appropriations 9,317,934 9,677,863 8,422,350 1,255,513 BUDGETARY FUND BALANCE, JUNE 30 4,451,363 $ 4,365,982 $ 6,234,584 $ 1,868,602 $ continued 53 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2014 Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 14,656,934 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (5,691,924) Revenues from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes 148,306 A87 cost reimbursement is a budgetary resource but is not current-year revenue for financial reporting purposes (252,875) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (1,366,190) Total revenues as reported on the statement of revenues expenditures, and changes in fund balances - governmental funds 7,494,251 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 8,422,350 $ Differences - budget to GAAP: Expenditures from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as charges to appropriations for budgetary purposes 60,685 The County does not include the deposit held by the claims administrator for budgetary purposes 115,833 A87 cost reimbursement reported as a reduction of expenditures for financial reporting purposes but is not budgeted as a charge to appropriations for budgetary purposes (252,875) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (603,368) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 7,742,625 $ 54 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund Variance with For the Year Ended June 30, 2014 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 1,732,623 $ 1,732,623 $ 1,732,623 $ - $ RESOURCES (inflows): Licenses and permits 600 600 1,095 495 Fines, forfeitures and penalties 500 500 825 325 Use of money and property 5,500 5,500 4,519 (981) Intergovernmental 877,865 877,865 1,091,808 213,943 Charges for services 477,000 477,000 418,538 (58,462) Other revenues - - 12,164 12,164 Amounts Available for Appropriation 3,094,088 3,094,088 3,261,572 167,484 CHARGES TO APPROPRIATIONS (outflows): Public ways and facilities 1,765,154 1,765,154 1,399,011 366,143 Total Charges to Appropriations 1,765,154 1,765,154 1,399,011 366,143 BUDGETARY FUND BALANCE, JUNE 30 1,328,934 $ 1,328,934 $ 1,862,561 $ 533,627 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 3,261,572 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (1,732,623) Equipment rental revenue is generated intrafund and reported as a budgetary resource but eliminated for financial reporting purposes and not considered current-year revenue (110,936) Total revenues as reported on the statement of revenues expenditures and changes in fund balances - governmental funds 1,418,013 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,399,011 Differences - budget to GAAP: Equipment rental expenditures is generated intrafund and reported as expenditures for budgetary purposes but eliminated for financial reporting purposes and not considered current-year expenditures (110,936) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,288,075 $ 55 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act Variance with For the Year Ended June 30, 2014 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 5,824,566 $ 5,824,566 $ 5,824,566 $ - $ RESOURCES (inflows): Use of money and property 15,000 15,000 15,782 782 Intergovernmental 889,200 889,200 1,127,136 237,936 Other revenues 6,750 6,750 4,076 (2,674) Amounts Available for Appropriation 6,735,516 6,735,516 6,971,560 236,044 CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 1,086,093 1,160,773 962,887 197,886 Total Charges to Appropriations 1,086,093 1,160,773 962,887 197,886 BUDGETARY FUND BALANCE, JUNE 30 5,649,423 $ 5,574,743 $ 6,008,673 $ 433,930 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 6,971,560 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (5,824,566) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,146,994 $ 56 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule STPUD Mitigation Variance with For the Year Ended June 30, 2014 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 3,282,992 $ 3,282,992 $ 3,282,992 $ - $ RESOURCES (inflows): Use of money and property 1,000 1,000 4,420 3,420 Charges for services 149,110 149,110 154,438 5,328 Amounts Available for Appropriation 3,433,102 3,433,102 3,441,850 8,748 CHARGES TO APPROPRIATIONS (outflows): Transfers out 2,144,994 2,407,643 2,407,639 4 Total Charges to Appropriations 2,144,994 2,407,643 2,407,639 4 BUDGETARY FUND BALANCE, JUNE 30 1,288,108 $ 1,025,459 $ 1,034,211 $ 8,752 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 3,441,850 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (3,282,992) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 158,858 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 2,407,639 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (2,407,639) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds - $ 57 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund Variance with For the Year Ended June 30, 2014 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 3,719,522 $ 3,719,522 $ 3,719,522 $ - $ RESOURCES (inflows): Use of money and property 9,000 9,000 11,768 2,768 Intergovernmental 1,321,683 1,321,683 1,663,886 342,203 Amounts Available for Appropriation 5,050,205 5,050,205 5,395,176 344,971 CHARGES TO APPROPRIATIONS (outflows) Public protection 15,000 15,000 787 14,213 Transfers out to other funds 993,105 1,027,243 783,746 243,497 Total Charges to Appropriations 1,008,105 1,042,243 784,533 257,710 BUDGETARY FUND BALANCE, JUNE 30 4,042,100 $ 4,007,962 $ 4,610,643 $ 602,681 $ Reconciliation of Budgetary Inflows and Outflows to GAAP Revenues and Expenditures Sources / inflows of resources: Actual amounts available for appropriation from the budgetary comparison schedule 5,395,176 $ Differences - budget to GAAP: The fund balance at the beginning of the year is a budgetary resource but is not current-year revenue for financial reporting purposes (3,719,522) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,675,654 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 784,533 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (783,746) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 787 $ 58 ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2014 59 BUDGETARY BASIS OF ACCOUNTING In accordance with the provisions of Sections 29000 and 29143, inclusive, of the California Government Code and other statutory provisions, commonly known as the County Budget Act, the County prepares a budget for each fiscal year. A tentative budget approved no later than June 30 of each year establishes the legal authority for county spending in the following fiscal year until a final budget is adopted on or before October 2nd. Prior to adoption of the final budget, a public hearing is held to receive comments prior to adoption. From the effective date of the budget, which is adopted and controlled at the departmental level, the amounts stated therein as proposed expenditures become appropriations to the various County departments. However, the legal level of control is the fund level. The Board of Supervisors may amend the budget by resolution during the fiscal year. Department heads may, upon approval of the Treasurer- Tax Collector-Auditor Controller and the County Administrative Officer, make transfers from one object or purpose to another within the same budget unit. All other budget amendments must be approved by the County Board of Supervisors. It is the final revised budget that is presented in the required supplementary information section of this financial report. Appropriations lapse at year end. Budgets are adopted for the General Fund, all special revenue funds, permanent fund and capital projects funds. Accounting principles applied for purposes of developing data on a budgetary basis are materially the same as those used to present financial statements in conformity with GAAP, except that transfers are regarded as inflows of resources for budgetary purposes and not revenues for GAAP financial statement presentation purposes and transfers out are considered outflows of resources for budgetary purposes but not expenditures for GAAP financial statement presentation purposes. ---PAGE BREAK--- SUPPLEMENTARY INFORMATION Combining Fund Statements ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Governmental Funds June 30, 2014 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total ASSETS Cash and investments 4,201,821 $ 452,410 $ 359,317 $ - $ 5,013,548 $ Accounts receivable 4,198 - - - 4,198 Taxes receivable 23,705 - - - 23,705 Due from other governments 838,039 - 65,458 - 903,497 Interest receivable 2,053 224 156 - 2,433 Due from other funds 298,117 - - - 298,117 Total Assets 5,367,933 $ 452,634 $ 424,931 $ - $ 6,245,498 $ LIABILITIES Accounts payable 300,219 $ - $ 6,704 $ - $ 306,923 $ Accrued salaries and benefits 57,819 - - - 57,819 Due to other funds 388,467 - 61,102 - 449,569 Total Liabilities 746,505 - 67,806 - 814,311 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 347,243 - 17,400 - 364,643 FUND BALANCES Nonspendable - 400,000 - - 400,000 Restricted 4,374,534 - 69,193 - 4,443,727 Assigned - - 290,290 - 290,290 Unassigned (100,349) - (19,758) - (120,107) Total Fund Balances 4,274,185 400,000 339,725 - 5,013,910 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,367,933 $ 400,000 $ 424,931 $ - $ 6,192,864 $ 60 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2014 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total REVENUES Taxes 69,993 $ - $ - $ - $ 69,993 $ Licenses and permits 78,777 - - - 78,777 Fines, forfeitures and penalties 1,755 - - - 1,755 Use of money and property 32,336 224 1,057 20 33,637 Intergovernmental 3,550,804 - 203,293 - 3,754,097 Charges for services 815,172 - 13,464 - 828,636 Other revenues 12,163 - - - 12,163 Total Revenues 4,561,000 224 217,814 20 4,779,058 EXPENDITURES Current: General government 83,730 - - - 83,730 Public protection 518,191 - - - 518,191 Public ways and facilities 694,321 - - - 694,321 Health and sanitation 1,618,139 - - - 1,618,139 Public assistance 1,197,233 - - - 1,197,233 Education 9,506 - - - 9,506 Capital outlay - - 562,213 - 562,213 Debt service: Principal - - - 64,924 64,924 Interest and issuance cost - - - 47,372 47,372 Total Expenditures 4,121,120 - 562,213 112,296 4,795,629 Excess (Deficiency) of Revenues Over (Under) Expenditures 439,880 224 (344,399) (112,276) (16,571) OTHER FINANCING SOURCES AND USES Transfers in 916,085 - 426,108 112,296 1,454,489 Transfers out (1,830,706) - (273,379) (1,004,151) (3,108,236) Total Other Financing Sources (Uses) (914,621) - 152,729 (891,855) (1,653,747) NET CHANGES IN FUND BALANCES (474,741) 224 (191,670) (1,004,131) (1,670,318) Fund Balances, Beginning of Year 4,753,509 452,410 531,395 1,004,131 6,741,445 Prior period adjustments (4,583) - - - (4,583) FUND BALANCES, END OF YEAR 4,274,185 $ 452,634 $ 339,725 $ - $ 5,066,544 $ 61 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2014 State Prop Public Mental Drug and 36 Health Health Alcohol SACPA ASSETS Cash and investments 50 $ 185,142 $ 509,229 $ 282,059 $ Accounts receivable 4,132 - - - Taxes receivable - - - - Due from other governments 139,443 23,201 84,491 - Interest receivable (12) 98 219 140 Due from other funds 74,689 2,416 - - Total Assets 218,302 $ 210,857 $ 593,939 $ 282,199 $ LIABILITIES Accounts payable 9,525 $ 11,264 $ 108,755 $ - $ Accrued salaries and benefits 20,634 3,295 2,215 - Due to other funds 10,287 790 1,580 - Total Liabilities 40,446 15,349 112,550 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues 34,533 - - - FUND BALANCES Restricted 143,323 195,508 481,389 282,199 Unassigned - - - - Total Fund Balances 143,323 195,508 481,389 282,199 Total Liabilities, Deferred Inflows of Resources and Fund Balances 218,302 $ 210,857 $ 593,939 $ 282,199 $ continued 62 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 Social One-Stop Court Services Services Tobacco Services ASSETS Cash and investments 406,225 $ 5,903 $ 94,261 $ 28,555 $ Accounts receivable 66 - - - Taxes receivable - - - - Due from other governments 129,704 12,028 - - Interest receivable 177 4 53 12 Due from other funds 151,430 - - - Total Assets 687,602 $ 17,935 $ 94,314 $ 28,567 $ LIABILITIES Accounts payable 14,593 $ 675 $ 2,058 $ 28,513 $ Accrued salaries and benefits 21,801 773 2,230 - Due to other funds 459 5,028 3,808 - Total Liabilities 36,853 6,476 8,096 28,513 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 125,758 - - - Fund Balances: Restricted 524,991 11,459 86,218 54 Unassigned - - - - Total Fund Balances 524,991 11,459 86,218 54 Total Liabilities, Deferred Inflows of Resources and Fund Balances 687,602 $ 17,935 $ 94,314 $ 28,567 $ continued 63 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 Water Fish and Rights Game Building Airport ASSETS Cash and investments 5,681 $ 50,171 $ 30,425 $ 43,960 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 3 32 10 20 Due from other funds - - - - Total Assets 5,684 $ 50,203 $ 30,435 $ 43,980 $ LIABILITIES Accounts payable - $ 682 $ 5,222 $ - $ Accrued salaries and benefits - - 4,123 - Due to other funds - - 912 45 Total Liabilities - 682 10,257 45 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Fund Balances: Restricted 5,684 49,521 20,178 43,935 Unassigned - - - - Total Fund Balances 5,684 49,521 20,178 43,935 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,684 $ 50,203 $ 30,435 $ 43,980 $ continued 64 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund ASSETS Cash and investments 19,119 $ 12,030 $ 108,160 $ 295,840 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 14,903 26,393 19,335 Interest receivable 16 7 51 147 Due from other funds - - - - Total Assets 19,135 $ 26,940 $ 134,604 $ 315,322 $ LIABILITIES Accounts payable - $ 1,264 $ 31,677 $ - $ Accrued salaries and benefits - 1,128 - - Due to other funds - 32,264 2,485 2,829 Total Liabilities - 34,656 34,162 2,829 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 14,903 - - Fund Balances: Restricted 19,135 - 100,442 312,493 Unassigned - (22,619) - - Total Fund Balances 19,135 (22,619) 100,442 312,493 Total Liabilities, Deferred Inflows of Resources and Fund Balances 19,135 $ 26,940 $ 134,604 $ 315,322 $ continued 65 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants ASSETS Cash and investments 47,863 $ 276,949 $ 327 $ 17,902 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 16,742 20,478 - - Interest receivable 24 133 - 9 Due from other funds - - - - Total Assets 64,629 $ 297,560 $ 327 $ 17,911 $ LIABILITIES Accounts payable - $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 16,742 - - - Total Liabilities 16,742 - - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Fund Balances: Restricted 47,887 297,560 327 17,911 Unassigned - - - - Total Fund Balances 47,887 297,560 327 17,911 Total Liabilities, Deferred Inflows of Resources and Fund Balances 64,629 $ 297,560 $ 327 $ 17,911 $ continued 66 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 State Law Assessor's Recorder's OES Enforcement Special Special Grants AB443 Revenue Fund Revenue Fund ASSETS Cash and investments - $ 700,663 $ 24,425 $ 97,800 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 83,145 - - Interest receivable 341 12 48 Due from other funds - 6,782 - - Total Assets $ 790,931 $ 24,437 $ 97,848 $ LIABILITIES Accounts payable - $ 196 $ 203 $ - $ Accrued salaries and benefits - - - - Due to other funds 6,782 137,104 - - Total Liabilities 6,782 137,300 203 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Fund Balances: Restricted - 653,631 24,234 97,848 Unassigned (6,785) - - - Total Fund Balances (6,785) 653,631 24,234 97,848 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 790,931 $ 24,437 $ 97,848 $ continued 67 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste ASSETS Cash and investments 7,340 $ 556,320 $ 114,936 $ 32,651 $ Accounts receivable - - - - Taxes receivable - 18,305 - - Due from other governments - - - - Interest receivable 4 271 71 15 Due from other funds - - - - Total Assets 7,344 $ 574,896 $ 115,007 $ 32,666 $ LIABILITIES Accounts payable - $ 400 $ - $ 2,883 $ Accrued salaries and benefits - - 1,620 - Due to other funds - 297 - - Total Liabilities - 697 1,620 2,883 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 17,763 - - Fund Balances: Restricted 7,344 556,436 113,387 29,783 Unassigned - - - - Total Fund Balances 7,344 556,436 113,387 29,783 Total Liabilities, Deferred Inflows of Resources and Fund Balances 7,344 $ 574,896 $ 115,007 $ 32,666 $ continued 68 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs ASSETS Cash and investments - $ 21,947 $ 2,654 $ 14,786 $ Accounts receivable - - - - Taxes receivable - 5,400 - - Due from other governments 71,889 - 1,781 - Interest receivable (23) 29 4 - Due from other funds 2,800 - - - Total Assets 74,666 $ 27,376 $ 4,439 $ 14,786 $ LIABILITIES Accounts payable 24,182 $ - $ - $ 14,786 $ Accrued salaries and benefits - - - - Due to other funds 49,540 2,800 - - Total Liabilities 73,722 2,800 - 14,786 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 71,889 - - - Fund Balances: Restricted - 24,576 4,439 - Unassigned (70,945) - - - Total Fund Balances (70,945) 24,576 4,439 - Total Liabilities, Deferred Inflows of Resources and Fund Balances 74,666 $ 27,376 $ 4,439 $ 14,786 $ continued 69 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 Title III Public Fire Secure Rural SAFER Health Protection Schools Grant Misc. Grants ASSETS Cash and investments 8,249 $ 146,672 $ - $ 43,532 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - - - 183,608 Interest receivable 3 73 - 60 Due from other funds - - - - Total Assets 8,252 $ 146,745 $ - $ 227,200 $ LIABILITIES Accounts payable - $ 204 $ - $ 43,137 $ Accrued salaries and benefits - - - - Due to other funds - 12,000 - 54,391 Total Liabilities - 12,204 - 97,528 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 71,499 Fund Balances: Restricted 8,252 134,541 - 58,173 Unassigned - - - - Total Fund Balances 8,252 134,541 - 58,173 Total Liabilities, Deferred Inflows of Resources and Fund Balances 8,252 $ 146,745 $ - $ 227,200 $ continued 70 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2014 Behavioral Public Other Health Safety Miscellaneous Misc. Grants Misc. Grants Grants Total ASSETS Cash and investments 5,061 $ 4,934 $ - $ 4,201,821 $ Accounts receivable - - - 4,198 Taxes receivable - - - 23,705 Due from other governments - - 10,898 838,039 Interest receivable 3 2 - 2,053 Due from other funds - - 60,000 298,117 Total Assets 5,064 $ 4,936 $ 70,898 $ 5,367,933 $ LIABILITIES Accounts payable - $ - $ - $ 300,219 $ Accrued salaries and benefits - - - 57,819 Due to other funds - - 48,324 388,467 Total Liabilities - - 48,324 746,505 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - 10,898 347,243 Fund Balances: Restricted 5,064 4,936 11,676 4,374,534 Unassigned - - - (100,349) Total Fund Balances 5,064 4,936 11,676 4,274,185 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,064 $ 4,936 $ 70,898 $ 5,367,933 $ 71 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 State Prop Public Mental Drug and 36 Health Health Alcohol SACPA REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 15,746 528 1,170 755 Intergovernmental 173,664 260,410 482,138 - Charges for services 135,119 1,907 - - Other revenues 913 - - - Total Revenues 325,442 262,845 483,308 755 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation 607,370 275,798 384,744 - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 607,370 275,798 384,744 - Excess (Deficiency) of Revenues Over (Under) Expenditures (281,928) (12,953) 98,564 755 OTHER FINANCING SOURCES (USES) Transfers in 376,051 - - - Transfers out - - - - Total Other Financing Sources (Uses) 376,051 - - - NET CHANGES IN FUND BALANCES 94,123 (12,953) 98,564 755 Fund Balances, Beginning of Year 49,200 208,461 382,825 281,444 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 143,323 $ 195,508 $ 481,389 $ 282,199 $ continued 72 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 Social One-Stop Court Services Services Tobacco Services REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 6,134 23 270 34 Intergovernmental 729,674 62,167 126,567 - Charges for services - - - - Other revenues 11,219 - - - Total Revenues 747,027 62,190 126,837 34 EXPENDITURES Current: General government - - - - Public protection - - - 28,513 Public ways and facilities - - - - Health and sanitation - - 92,089 - Public assistance 1,135,153 62,080 - - Education - - - - Capital outlay - - - - Total Expenditures 1,135,153 62,080 92,089 28,513 Excess (Deficiency) of Revenues Over (Under) Expenditures (388,126) 110 34,748 (28,479) OTHER FINANCING SOURCES (USES) Transfers in 348,824 - - 28,491 Transfers out - - (14,408) - Total Other Financing Sources (Uses) 348,824 - (14,408) 28,491 NET CHANGES IN FUND BALANCES (39,302) 110 20,340 12 Fund Balances, Beginning of Year 564,293 11,349 65,878 42 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 524,991 $ 11,459 $ 86,218 $ 54 $ continued 73 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 Water Fish and Rights Game Building Airport REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - 78,777 - Fines, forfeitures and penalties - 1,755 - - Use of money and property 15 131 65 97 Intergovernmental - - - 10,000 Charges for services - 51,816 34,086 - Other revenues - - 31 - Total Revenues 15 53,702 112,959 10,097 EXPENDITURES Current: General government - - - - Public protection - 53,907 152,518 - Public ways and facilities - - - 1,674 Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures - 53,907 152,518 1,674 Excess (Deficiency) of Revenues Over (Under) Expenditures 15 (205) (39,559) 8,423 OTHER FINANCING SOURCES (USES) Transfers in - - 45,040 - Transfers out - - - - Total Other Financing Sources (Uses) - - 45,040 - NET CHANGES IN FUND BALANCES 15 (205) 5,481 8,423 Fund Balances, Beginning of Year 5,669 49,726 14,697 35,512 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 5,684 $ 49,521 $ 20,178 $ 43,935 $ continued 74 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 85 29 264 729 Intergovernmental - 39,636 123,155 77,339 Charges for services 4,464 - - - Other revenues - - - - Total Revenues 4,549 39,665 123,419 78,068 EXPENDITURES Current: General government 17,706 - - - Public protection - 43,592 96,100 9,190 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 17,706 43,592 96,100 9,190 Excess (Deficiency) of Revenues Over (Under) Expenditures (13,157) (3,927) 27,319 68,878 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (9,941) (11,315) Total Other Financing Sources (Uses) - - (9,941) (11,315) NET CHANGES IN FUND BALANCES (13,157) (3,927) 17,378 57,563 Fund Balances, Beginning of Year 32,292 (18,692) 83,064 254,930 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 19,135 $ (22,619) $ 100,442 $ 312,493 $ continued 75 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 459 584 24 42 Intergovernmental - 130,500 - 5,314 Charges for services - - - - Other revenues - - - - Total Revenues 459 131,084 24 5,356 EXPENDITURES Current: General government - - - - Public protection - - 82 - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures - - 82 - Excess (Deficiency) of Revenues Over (Under) Expenditures 459 131,084 (58) 5,356 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (139,537) (5,000) (12,560) - Total Other Financing Sources (Uses) (139,537) (5,000) (12,560) - NET CHANGES IN FUND BALANCES (139,078) 126,084 (12,618) 5,356 Fund Balances, Beginning of Year 186,965 171,476 12,945 12,555 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 47,887 $ 297,560 $ 327 $ 17,911 $ continued 76 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 State Law OES Enforcement Assessor's Recorder's FEMA AB443 Trust Trust REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (18) 2,164 69 263 Intergovernmental - 529,500 - - Charges for services - - 3,280 4,412 Other revenues - - - - Total Revenues (18) 531,664 3,349 4,675 EXPENDITURES Current: General government - - 6,024 - Public protection - 32,488 - 5,978 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures - 32,488 6,024 5,978 Excess (Deficiency) of Revenues Over (Under) Expenditures (18) 499,176 (2,675) (1,303) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - (864,180) - - Total Other Financing Sources (Uses) - (864,180) - - NET CHANGES IN FUND BALANCES (18) (365,004) (2,675) (1,303) Fund Balances, Beginning of Year (6,767) 1,018,635 26,909 99,151 Prior period adjustments - - - - FUND BALANCES, END OF YEAR (6,785) $ 653,631 $ 24,234 $ 97,848 $ continued 77 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste REVENUES Taxes - $ 9,993 $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 20 1,271 254 4 Intergovernmental - 350 - - Charges for services - 248,198 253,400 75,234 Other revenues - - - - Total Revenues 20 259,812 253,654 75,238 EXPENDITURES Current: General government - - - - Public protection - - 62,006 - Public ways and facilities - 122,683 - - Health and sanitation - - - 75,518 Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures - 122,683 62,006 75,518 Excess (Deficiency) of Revenues Over (Under) Expenditures 20 137,129 191,648 (280) OTHER FINANCING SOURCES (USES) Transfers in - 1,000 - 2,000 Transfers out - - (159,430) - Total Other Financing Sources (Uses) - 1,000 (159,430) 2,000 NET CHANGES IN FUND BALANCES 20 138,129 32,218 1,720 Fund Balances, Beginning of Year 7,324 418,307 81,169 28,063 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 7,344 $ 556,436 $ 113,387 $ 29,783 $ continued 78 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs REVENUES Taxes - $ - $ - $ 60,000 $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (93) 280 35 - Intergovernmental 105,862 123,966 6,176 - Charges for services - - - - Other revenues - - - - Total Revenues 105,769 124,246 6,211 60,000 EXPENDITURES Current: General government - - - 60,000 Public protection - - - - Public ways and facilities 160,368 203,000 15,000 - Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 160,368 203,000 15,000 60,000 Excess (Deficiency) of Revenues Over (Under) Expenditures (54,599) (78,754) (8,789) - OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - NET CHANGES IN FUND BALANCES (54,599) (78,754) (8,789) - Fund Balances, Beginning of Year (11,763) 103,330 13,228 - Prior period adjustments (4,583) - - - FUND BALANCES, END OF YEAR (70,945) $ 24,576 $ 4,439 $ - $ continued 79 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 Title III Pubic Fire Secure Rural SAFER Health Protection Schools Grant Misc. Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 168 397 1 322 Intergovernmental - 32,749 - 305,868 Charges for services 3,256 - - - Other revenues - - - - Total Revenues 3,424 33,146 1 306,190 EXPENDITURES Current: General government - - - - Public protection - 13,284 - - Public ways and facilities - - - - Health and sanitation - - - 171,597 Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures - 13,284 - 171,597 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,424 19,862 1 134,593 OTHER FINANCING SOURCES (USES) Transfers in - 114,679 - - Transfers out (96,656) - - (147,679) Total Other Financing Sources (Uses) (96,656) 114,679 - (147,679) NET CHANGES IN FUND BALANCES (93,232) 134,541 1 (13,086) Fund Balances, Beginning of Year 101,484 - 71,259 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 8,252 $ 134,541 $ - $ 58,173 $ continued 80 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2014 Behavioral Public Other Health Safety Miscellaneous Misc. Grants Misc. Grants Grants Total REVENUES Taxes - $ - $ - $ 69,993 $ Licenses and permits - - - 78,777 Fines, forfeitures and penalties - - - 1,755 Use of money and property 5 3 7 32,336 Intergovernmental 11,023 13,078 201,668 3,550,804 Charges for services - - - 815,172 Other revenues - - - 12,163 Total Revenues 11,028 13,081 201,675 4,561,000 EXPENDITURES Current: General government - - - 83,730 Public protection - - 20,533 518,191 Public ways and facilities - - 191,596 694,321 Health and sanitation 11,023 - - 1,618,139 Public assistance - - - 1,197,233 Education - - 9,506 9,506 Capital outlay - - - - Total Expenditures 11,023 - 221,635 4,121,120 Excess (Deficiency) of Revenues Over (Under) Expenditures 5 13,081 (19,960) 439,880 OTHER FINANCING SOURCES (USES) Transfers in - - - 916,085 Transfers out - - (370,000) (1,830,706) Total Other Financing Sources (Uses) - - (370,000) (914,621) NET CHANGES IN FUND BALANCES 5 13,081 (389,960) (474,741) Fund Balances, Beginning of Year 5,059 (8,145) 401,636 4,753,509 Prior period adjustments - - - (4,583) FUND BALANCES, END OF YEAR 5,064 $ 4,936 $ 11,676 $ 4,274,185 $ 81 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2014 Accumulated Hawkin's Peak Markleeville Capital Communications Pipeline Vehicle Outlay Tower Prop 50 Grant Replacement ASSETS Cash and investments 400 $ 106,456 $ - $ 183,302 $ Due from other governments - - - - Interest receivable 76 - 1 56 Total Assets 476 $ 106,456 $ 1 $ 183,358 $ LIABILITIES Accounts payable - $ - $ - $ - $ Due to other funds - - 1,983 - Total Liabilities - - 1,983 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - FUND BALANCES Restricted - - - - Assigned 476 106,456 - 183,358 Unassigned - - (1,982) - Total Fund Balances 476 106,456 (1,982) 183,358 Total Liabilities, Deferred Inflows of Resources and Fund Balances 476 $ 106,456 $ 1 $ 183,358 $ continued 82 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2014 Leviathan County Parks and Peak Road Recreation Communications Improvement Grant Tower Total ASSETS Cash and investments - $ - $ 69,159 $ 359,317 $ Due from other governments 65,458 - - 65,458 Interest receivable (11) - 34 156 Total Assets 65,447 $ - $ 69,193 $ 424,931 $ LIABILITIES Accounts payable 6,704 $ - $ - $ 6,704 $ Due to other funds 59,119 - - 61,102 Total Liabilities 65,823 - - 67,806 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 17,400 - - 17,400 Fund Balances: Restricted - - 69,193 69,193 Assigned - - - 290,290 Unassigned (17,776) - - (19,758) Total Fund Balances (17,776) - 69,193 339,725 Total Liabilities, Deferred Inflows of Resources and Fund Balances 65,447 $ - $ 69,193 $ 424,931 $ 83 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended June 30, 2014 Accumulated Hawkin's Peak Markleeville Capital Communications Pipeline Vehicle Outlay Tower Prop 50 Grant Replacement REVENUES Use of money and property 588 $ - $ (83) $ 378 $ Intergovernmental - - 85,692 - Charges for services - - - 13,464 Total Revenues 588 - 85,609 13,842 EXPENDITURES Capital outlay 62,232 154,019 - 252,184 Total Expenditures 62,232 154,019 - 252,184 Excess (Deficiency) of Revenues Over (Under) Expenditures (61,644) (154,019) 85,609 (238,342) OTHER FINANCING SOURCES (USES) Transfers in 62,232 108,993 - 254,883 Transfers out (230,000) (43,379) - - Total Other Financing Sources (Uses) (167,768) 65,614 - 254,883 NET CHANGES IN FUND BALANCES (229,412) (88,405) 85,609 16,541 Fund Balances, Beginning of Year 229,888 194,861 (87,591) 166,817 FUND BALANCES, END OF YEAR 476 $ 106,456 $ (1,982) $ 183,358 $ continued 84 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Capital Projects Funds For the Year Ended June 30, 2014 Leviathan County Parks and Peak Road Recreation Communications Improvement Grant Tower Total REVENUES Use of money and property (20) $ - $ 194 $ 1,057 $ Intergovernmental 117,601 - - 203,293 Charges for services - - - 13,464 Total Revenues 117,581 - 194 217,814 EXPENDITURES Capital outlay 76,792 - 16,986 562,213 Total Expenditures 76,792 - 16,986 562,213 Excess (Deficiency) of Revenues Over (Under) Expenditures 40,789 - (16,792) (344,399) OTHER FINANCING SOURCES (USES) Transfers in - - - 426,108 Transfers out - - - (273,379) Total Other Financing Sources (Uses) - - - 152,729 NET CHANGES IN FUND BALANCES 40,789 - (16,792) (191,670) Fund Balances, Beginning of Year (58,565) - 85,985 531,395 FUND BALANCES, END OF YEAR (17,776) $ - $ 69,193 $ 339,725 $ 85