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COUNTY OF ALPINE ANNUAL FINANCIAL STATEMENTS JUNE 30, 2013 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Independent Auditor’s Report 1-2 Management’s Discussion and Analysis (Required Supplementary Information) 3-12 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 24-51 Required Supplementary Information: Schedule of Funding Progress – County Postemployment Healthcare Plan 52 Budgetary Comparison Schedules: General Fund 53-55 Road Fund 56 Mental Health Services Act 57 STPUD Mitigation Fund 58 Realignment Fund 59 Note to Required Supplementary Information 60 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining Fund Statements: Nonmajor Governmental Funds: Balance Sheet 61 Statement of Revenues, Expenditures and Changes in Fund Balances 62 Nonmajor Special Revenue Funds: Combining Balance Sheet 63-72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 73-82 Nonmajor Capital Projects Funds: Combining Balance Sheet 83-84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 85-86 ---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, 2013, 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 (Commission), 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, 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, 2013, 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. Emphasis of Matter As described in Note 1 to the basic financial statements, effective July 1, 2012, the County adopted the provisions of Government Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus; an amendment of GASB Statement No. 14 and No. 34. Our opinion is not modified with respect to these matters. 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 3-12, the schedule of funding progress on page 52, and the budgetary comparison information on pages 53-60 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 25, 2014, 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 25, 2014 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2013 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, 2013. 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 $38,846,836 (net position). Of this amount, $8,529,824 is unrestricted and available to meet ongoing obligations to citizens and creditors. $16,613,983 is restricted and must be used only for specific purposes and $13,703,029 is invested in capital assets, net of related debt. As of June 30, 2013, the County’s governmental funds reported combined fund balances of $26,975,675, an increase of $1,722,661 in comparison with the prior year. Of this increase. $5,319 is the result of adjustments to revenues reported in prior years and $1,717,342 is the amount that current year revenues exceeded current year expenditures. Amounts available for spending include restricted, committed, assigned and unassigned fund balances and total 92.88% of ending fund balance. Of this amount, $17,344,924 is restricted by law or externally imposed requirements, $3,244,892 is committed for specific purposes and $4,185,294 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 $488,741 or 7.73% of total General Fund expenditures. The County’s capital asset balances increased by $1,255,667 or 10% during the current fiscal year. The increase results from new purchases of $1,219,573 and construction additions of $1,119,056, reduced by $931,604 of depreciation on capital assets previously placed in service. New debt was used to finance $257,432 of the construction additions. The County’s long-term liabilities increased by $1,020,593 or 90.18% during the current fiscal year, primarily from the issuance of new capital-lease financing in the amount of $1,300,000 netted with $350,000 to retire the County’s older capital lease. The remainder of the change in long-term liabilities is the result of compensated absences which increased by 15% and the claims liability which increased by 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 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2013 4 report also contains other required supplementary information in addition to the basic financial statements themselves. 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, 2013 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, and the Realignment 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, 2013 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 2013 2012 2013 2012 2013 2012 Assets: Current and other assets 28,852 $ 27,823 $ 128 $ 51 $ 28,980 $ 27,874 $ Capital assets, net 13,791 12,528 26 34 13,817 12,562 Total assets 42,643 40,351 154 85 42,797 40,436 Liabilities: Current and other liabilities 732 1,003 168 91 900 1,094 Long-term liabilities 3,051 1,924 - - 3,051 1,924 Total liabilities 3,783 2,927 168 91 3,951 3,018 Net Position: Net invetment in capital assets 13,676 12,178 26 34 13,702 12,212 Restricted net position 16,614 15,288 - - 16,614 15,288 Unrestricted net position 8,570 9,958 (40) (40) 8,530 9,918 Total net position 38,860 $ 37,424 $ (14) $ $ 38,846 $ 37,418 $ 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 $38,846,836 at the close of the most recent fiscal year, increasing $1,428,545, or 3.8% 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 $1,326,166, or 8.67%. 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, 2013 7 Unrestricted net position in the amount of $8,529,824, or 22%, of total net position may be used to meet the County’s ongoing obligations to citizens and creditors. Unrestricted net position decreased $1,388,336, or 14%, because prior year surpluses were used to purchase capital assets, fund construction and payoff the County’s older capital lease balance. 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 the activity expects to receive reimbursement for current year expenditures in the next fiscal year when the claim with the grantor is amended. The County’s total net position increased $1,428,545 during the fiscal year ended June 30, 2013. When compared to the prior year, revenues decreased $2,002,008, or 11.25%, and expenses decreased $187,882, or 1.3%. 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 2013 2012 2013 2012 2013 2012 Revenues: Program revenues: Charges for services 1,828 $ 1,955 $ 5 $ 3 $ 1,833 $ 1,958 $ Operating grants and contributions 7,830 9,870 68 19 7,898 9,889 Capital grants and contributions 135 82 - - 135 82 General revenues: Property taxes 4,791 4,769 - - 4,791 4,769 Sales taxes 248 253 - - 248 253 Other taxes 604 465 - - 604 465 Unrestricted investment earnings 100 136 - - 100 136 Non-program grant revenues 180 240 - - 180 240 Total revenues 15,716 17,770 73 22 15,789 17,792 Expenses: General government 2,516 3,097 - - 2,516 3,097 Public protection 4,776 4,475 - - 4,776 4,475 Public ways and facilities 2,119 2,723 - - 2,119 2,723 Health and sanitation 2,535 2,085 - - 2,535 2,085 Public assistance 1,858 1,647 - - 1,858 1,647 Education 310 294 - - 310 294 Recreation 101 131 - - 101 131 Interest on long-term debt 70 28 - - 70 28 Alpine County Transit - - 81 75 81 75 Total expenses 14,285 14,480 81 75 14,366 14,555 Excess (deficiency) before transfers 1,431 3,290 (53) 1,423 3,237 Transfers - (45) - 45 - - Change in net position 1,431 3,245 1,423 3,237 Net position at beginning of year 37,424 31,358 2 37,418 31,360 Restatements 5 2,821 - - 5 2,821 Net position at end of the year 38,860 $ 37,424 $ (14) $ $ 38,846 $ 37,418 $ ---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 contributi 49.82% Capital grants a contribution 0.86% sion and Analy ne 30, 2013 am Revenues 013 – Governme 013 P ants ions and s ysis s – Governme ntal Activitie Property taxes 30.48% Re 8 ental Activiti es evenues es Other taxe 5.42% es Interest 0.6 spe Cha s 1 Revenues Expenses earnings 64% Grants not restricted to ecific program 1.15% arges for ervices 11.63% s ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2013 9 The County’s revenues decreased by $2,002,008, or 11.25%. The most significant changes in revenues are noted below: Increase (Decrease) Transient occupancy taxes 144,000 $ Leases and rents (200,000) Markleeville Pipeline grant (450,000) Public safety project grants (1,550,000) Interest and penalties on property tax collections 75,000 The County’s expenses decreased by $187,882, or 1.3%. The decrease is the result of county-wide efforts to reduce expenses to match available resources and to move towards achieving a structurally balanced budget. 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, 2013, the County’s governmental funds reported combined ending fund balances of $26,975,675, an increase of $1,722,661 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, $1,920,745, consists of amounts that are not spendable in form or are legally or contractually required to remain intact and primarily consists of inventories, advances receivable and deposits. The largest component of this balance is the deposit of $1,331,093 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, $17,344,924, 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 - $5,824,566 o Realignment Funding - $3,719,522 o Restricted to road maintenance and improvement - $1,590,610 o AB443 Enhancing Law Enforcement Activities - $1,018,537 Committed fund balance, $3,244,892, 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, $4,185,294, represents amounts intended for use as determined by the Board of Supervisors and also represents the residual balance in governmental funds other than ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2013 10 the General Fund. Assigned fund balances primarily consists of $1 million set aside for fiscal emergencies, $1,240,561 anticipated for funding next fiscal year’s General Fund shortfall in revenues, $450,000 for funding activities struggling with shrinking revenues and $591,566 set aside for on-going capital projects. Unassigned fund balance, $279,820, represents the residual classification for the General Fund netted against deficit balances in other governmental funds. General Fund Approximately 76.5%, or $4,352,765, 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 decreased by $704,263, or 59% over last year’s balance. The decrease supports management’s objective to continue reducing expenditures to match available resources. 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 90% of total General Fund expenditures and spendable fund balance is approximately 68.9%. Other Governmental Funds As compared with the prior year, the total fund balances of the remaining governmental funds increased 10.5%, or $2,016,967. The following significant changes occurred: During fiscal year 2013, the County established a new debt service fund to receive capital lease funding of $1.3 million. At June 30, 2013, the debt service fund had a balance of $1,004,131. In the aggregate, expenditures were less than revenues by $2,011,648. The Mental Health Services fund and the Realignment fund account for more than 50% of this surplus. GOVERNMENTAL FUND BUDGETARY HIGHLIGHTS The County’s final budget appropriations for expenditures for the General Fund differ from the original budget by $326,320, or 4.1%. Significant changes in appropriations included the following: Early payoff of capital lease - $300,000 Increased litigation costs - $124,000 Insurance casualty - $26,050 Cancelled capital asset purchases – ($40,000) Cost savings – ($84,000) Actual expenditures were less than budgeted appropriations by $871,194, or 10.5% of final budgeted appropriations. Differences between the final budget and actual amounts can be summarized as follows: ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2013 11 Cost savings of $131,700 for salaries and benefits were realized because some positions were vacant for part of the year. Employee medical insurance premiums were $96,000 less than estimated. Retire health insurance premiums were $19,800 more than anticipated. Some activities and projects outsourced to third parties experienced delays to the next fiscal year aggregating to cost savings of $214,000 in the current year. Contributions of $313,000 to fund construction in progress and other capital projects were delayed to the next fiscal year. Transfers of $126,000 as subsidies to other funds were considered not necessary. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital Assets The County’s capital assets for its governmental and business-type activities as of June 30, 2013 totaled $13.8 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 $1,255,667, or 10%. Major capital asset additions during the current fiscal year included: Communication tower construction - $193,317 Alpine County Government Center project - $721,333 Fire trucks - $635,094 Snow blower - $432,967 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 $2,152,689, an increase of $1,020,593 from the prior year. During the fiscal year ended June 30, 2013, the County paid off the existing capital lease balance of $350,000 but during the same time period finalized new capital lease financing of $1,300,000 to partially fund the Alpine County Government Center project. Other long-term liabilities include 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. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis For the Year Ended June 30, 2013 12 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 Auditor’s Office 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, 2013 Discrete Component Unit Alpine County Primary Government Children Governmental Business-Type and Families Activities Activities Totals Commission ASSETS Cash and investments 25,126,956 $ 128,023 $ 25,254,979 $ 195,408 $ Accounts receivable 145,099 - 145,099 - Taxes receivable 575,128 - 575,128 - Due from other governments 1,503,972 - 1,503,972 515 Interest receivable 18,371 94 18,465 - Prepaid expense 10,282 - 10,282 - Deposits 1,331,093 - 1,331,093 - Inventories 141,270 - 141,270 - Capital assets: Nondepreciable 2,660,856 - 2,660,856 - Depreciable, net 11,130,647 26,478 11,157,125 - Total Assets 42,643,674 154,595 42,798,269 195,923 LIABILITIES Accounts payable 475,675 883 476,558 36 Accrued salaries and benefits 252,734 857 253,591 - Accrued interest payable 3,998 - 3,998 - Unearned revenue - 166,490 166,490 - Long-term liabilities: Due within one year: Compensated absences 247,510 - 247,510 3,594 Capital leases 64,924 - 64,924 - Estimated liability for claims costs 378,189 - 378,189 - Due after one year: Compensated absences 247,510 - 247,510 - Capital leases 1,214,556 - 1,214,556 - Other post-employment benefits 898,107 - 898,107 - Total Liabilities 3,783,203 168,230 3,951,433 3,630 NET POSITION Net investment in capital assets 13,676,551 26,478 13,703,029 - Restricted 16,613,983 - 16,613,983 192,293 Unrestricted 8,569,937 (40,113) 8,529,824 - Total Net Position 38,860,471 $ (13,635) $ 38,846,836 $ 192,293 $ See accompanying notes to the basic financial statements. 13 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2013 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 2,515,849 $ 652,116 $ - $ - $ Public protection 4,775,423 505,051 1,714,149 - Public ways and facilities 2,119,193 317,094 1,515,991 134,915 Health and sanitation 2,535,434 313,276 2,705,347 - Public assistance 1,858,267 30,175 1,859,384 - Education 310,087 10,212 35,578 - Recreation and culture 101,179 - - - Interest on long-term debt 70,215 - - - Total Governmental Activities 14,285,647 1,827,924 7,830,449 134,915 Business-Type Activities Alpine Transit Service 81,360 5,437 67,853 - Total Primary Government 14,367,007 $ 1,833,361 $ 7,898,302 $ 134,915 $ Component Unit: Alpine County Children and and Families Commission 245,796 $ - $ 266,633 $ - $ 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: (1,863,733) $ - $ (1,863,733) $ General government (2,556,223) - (2,556,223) Public protection (151,193) - (151,193) Public ways and facilities 483,189 - 483,189 Health and sanitation 31,292 - 31,292 Public assistance (264,297) - (264,297) Education (101,179) - (101,179) Recreation and culture (70,215) - (70,215) Interest on long-term debt (4,492,359) - (4,492,359) Total Governmental Activities Business-Type Activities - (8,070) (8,070) Alpine Transit Service (4,492,359) (8,070) (4,500,429) Total Primary Government Component Unit: Alpine County Children and 20,837 $ and Families Commission GENERAL REVENUES AND TRANSFERS Taxes: 4,791,324 - 4,791,324 - Property taxes 247,534 - 247,534 - Sales and use taxes 574,460 - 574,460 - Transient occupancy taxes 29,915 - 29,915 - Other taxes Grants and other governmental revenues 180,234 - 180,234 - not restricted to specific programs 99,683 505 100,188 920 Unrestricted investment earnings 5,923,150 505 5,923,655 920 Total General Revenues 1,430,791 (7,565) 1,423,226 21,757 CHANGES IN NET POSITION 37,424,361 (6,070) 37,418,291 170,536 Net position, beginning of year 5,319 - 5,319 - Prior period adjustments 38,860,471 $ (13,635) $ 38,846,836 $ 192,293 $ NET POSITION, END OF YEAR ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2013 Mental General Road Health STPUD Fund Fund Services Act Mitigation ASSETS Cash and investments 4,665,121 $ 1,317,417 $ 5,728,080 $ 2,723,948 $ Accounts receivable 19,626 3,192 4,498 - Taxes receivable 535,456 - - - Due from other governments 139,284 336,937 133,281 - Interest receivable 5,358 987 3,927 2,136 Prepaid expenses 8,066 743 - - Deposits 1,331,093 - - - Inventories - 141,270 - - Due from other funds 167,218 114,912 9,712 565,031 Advances to other funds - - - 38,100 Total Assets 6,871,222 $ 1,915,458 $ 5,879,498 $ 3,329,215 $ LIABILITIES Accounts payable 149,072 $ 28,325 $ 22,378 $ - $ Accrued salaries and benefits 134,855 17,573 13,544 - Due to other funds 303,287 125,000 19,010 46,223 Advances from other funds - - - - Total Liabilities 587,214 170,898 54,932 46,223 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 592,084 11,937 - - FUND BALANCES Nonspendable 1,339,159 142,013 - 38,100 Restricted 322,706 1,590,610 5,824,566 - Committed - - - 3,244,892 Assigned 3,541,318 - - - Unassigned 488,741 - - - Total Fund Balances 5,691,924 1,732,623 5,824,566 3,282,992 Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,871,222 $ 1,915,458 $ 5,879,498 $ 3,329,215 $ See the accompany notes to the basic financial statements. 15 ---PAGE BREAK--- Realignment Other Fund Governmental Total ASSETS 4,014,855 $ 6,677,535 $ 25,126,956 $ Cash and investments - 117,783 145,099 Accounts receivable - 39,672 575,128 Taxes receivable 134,632 759,838 1,503,972 Due from other governments 2,852 3,111 18,371 Interest receivable - 1,473 10,282 Prepaid expenses - - 1,331,093 Deposits - - 141,270 Inventories 35,006 936,701 1,828,580 Due from other funds - - 38,100 Advances to other funds 4,187,345 $ 8,536,113 $ 30,718,851 $ Total Assets LIABILITIES - $ 275,900 $ 475,675 $ Accounts payable - 86,762 252,734 Accrued salaries and benefits 467,823 867,237 1,828,580 Due to other funds - 38,100 38,100 Advances from other funds 467,823 1,267,999 2,595,089 Total Liabilities DEFERRED INFLOWS OF RESOURCES - 544,066 1,148,087 Unavailable revenues FUND BALANCES - 401,473 1,920,745 Nonspendable 3,719,522 5,887,520 17,344,924 Restricted - - 3,244,892 Committed - 643,976 4,185,294 Assigned - (208,921) 279,820 Unassigned 3,719,522 6,724,048 26,975,675 Total Fund Balances Total Liabilities, Deferred Inflows 4,187,345 $ 8,536,113 $ 30,718,851 $ 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, 2013 Fund balance - total governmental funds 26,975,675 $ 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 57,074,485 $ Less: accumulated depreciation (43,282,982) 13,791,503 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 1,148,087 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 (378,189) Capital leases (1,279,480) Compensated absences (495,020) Other post employment benefits (898,107) Accrued interest payable (3,998) Net position of governmental activities 38,860,471 $ 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, 2013 Mental General Road Health STPUD Fund Fund Services Act Mitigation REVENUES Taxes 5,778,779 $ - $ - $ - $ Licenses and permits 33,717 765 - - Fines, forfeitures and penalties 191,436 488 - - Use of money and property 50,682 6,459 20,621 16,586 Intergovernmental 360,247 1,336,179 1,449,932 - Charges for services 255,209 356,597 - 162,809 Other revenues 38,618 18,721 12,023 - Total Revenues 6,708,688 1,719,209 1,482,576 179,395 EXPENDITURES Current: General government 2,559,348 - - - Public protection 2,765,077 - - - Public ways and facilities - 1,864,407 - - Health and sanitation 117,454 - 763,415 - Public assistance 493,719 - - - Education 292,557 - - - Recreation and cultural services 30,509 - - - Capital outlay 62,179 - - - Debt service: Principal - - - 350,000 Interest and issuance cost - - - 21,769 Total Expenditures 6,320,843 1,864,407 763,415 371,769 Excess (Deficiency) of Revenues Over (Under) Expenditures 387,845 (145,198) 719,161 (192,374) OTHER FINANCING SOURCES (USES) Issuance of capital lease financing - - - - Transfers in 142,653 125,000 - 300,000 Transfers out (824,804) - - (475,898) Total Other Financing Sources and Uses (682,151) 125,000 - (175,898) NET CHANGES IN FUND BALANCES (294,306) (20,198) 719,161 (368,272) Fund Balances, Beginning of Year 5,986,230 1,752,821 5,105,405 3,651,264 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 5,691,924 $ 1,732,623 $ 5,824,566 $ 3,282,992 $ See the accompanying notes to the basic financial statements. 17 ---PAGE BREAK--- Realignment Other Fund Governmental Total REVENUES - $ 73,657 $ 5,852,436 $ Taxes - 70,734 105,216 Licenses and permits - 1,819 193,743 Fines, forfeitures and penalties 14,067 35,489 143,904 Use of money and property 1,467,257 3,921,833 8,535,448 Intergovernmental - 834,930 1,609,545 Charges for services - 47,930 117,292 Other revenues 1,481,324 4,986,392 16,557,584 Total Revenues EXPENDITURES Current: - 81,905 2,641,253 General government - 1,623,633 4,388,710 Public protection - 465,847 2,330,254 Public ways and facilities - 1,466,826 2,347,695 Health and sanitation - 1,189,665 1,683,384 Public assistance - 8,994 301,551 Education - - 30,509 Recreation and cultural services - 1,915,148 1,977,327 Capital outlay Debt service: - 20,520 370,520 Principal - 47,270 69,039 Interest and issuance cost - 6,819,808 16,140,242 Total Expenditures Excess (Deficiency) of Revenues Over 1,481,324 (1,833,416) 417,342 (Under) Expenditures OTHER FINANCING SOURCES (USES) - 1,300,000 1,300,000 Issuance of capital lease financing - 2,366,306 2,933,959 Transfers in (1,002,407) (630,850) (2,933,959) Transfers out (1,002,407) 3,035,456 1,300,000 Total Other Financing Sources and Uses 478,917 1,202,040 1,717,342 NET CHANGES IN FUND BALANCES 3,240,605 5,516,689 25,253,014 Fund Balances, Beginning of Year - 5,319 5,319 Prior period adjustments 3,719,522 $ 6,724,048 $ 26,975,675 $ 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, 2013 Net change to fund balance - total governmental funds 1,717,342 $ 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 2,338,629 Less: current year depreciation (924,039) 1,414,590 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. (151,358) 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. (421,806) 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. Issuance of capital lease financing (1,300,000) Capital lease repayments 370,520 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 (1,176) Change in compensated absences (64,880) Change in estimated liability for claims costs (26,233) Change in other post-employment benefits (106,208) (198,497) Change in net position of governmental activities 1,430,791 $ 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, 2013 ASSETS Current Assets: Cash and investments 128,023 $ Interest receivable 94 Total Current Assets 128,117 Non-Current Assets: Equipment, net of accumulated depreciation 26,478 Total Assets 154,595 LIABILITIES Current Liabilities: Accounts payable 883 Accrued salaries and benefits 857 Unearned revenue 166,490 Total Current Liabilities 168,230 NET POSITION Net investment in capital assets 26,478 Unrestricted (40,113) Total Net Position (13,635) $ 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, 2013 OPERATING REVENUES Passenger fares 5,437 $ OPERATING EXPENSES Salaries and benefits 34,318 Adminstrative 21,518 Fuel and vehicle maintenance 7,321 Insurance 10,638 Depreciation 7,565 Total Operating Expenses 81,360 OPERATING INCOME (LOSS) (75,923) NON-OPERATING REVENUES (EXPENSES) Federal transit administration grants 22,853 Local Transportation Fund allocation 45,000 Interest 505 Total Non-Operating Revenues (Expenses) 68,358 CHANGE IN NET POSITION (7,565) Net Position, Beginning of Year (6,070) NET POSITION, END OF YEAR (13,635) $ 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, 2013 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 5,795 $ Cash paid to employees (33,461) Cash paid to suppliers for goods and services (42,866) Net Cash Used by Operating Activities (70,532) CASH FLOWS FROM INVESTING ACTIVITIES Interest allocations from pooled investments 480 Net Cash Provided by Investment Activities 480 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 144,646 Net Cash Provided by Noncapital Financing Activities 144,646 NET INCREASE IN CASH AND CASH EQUIVALENTS 74,594 Cash and Cash Equivalents, Beginning of Year 53,429 CASH AND CASH EQUIVALENTS, END OF YEAR 128,023 $ RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating loss (75,923) $ Adjustment to reconcile operating loss to net cash provided (used) by operating activities: Depreciation 7,565 Changes in assets and liabilities: Accounts receivable 358 Accounts payable (3,389) Accrued salaries and benefits 857 NET CASH USED BY OPERATING ACTIVITIES (70,532) $ See the accompanying notes to the basic financial statements. 21 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Fiduciary Net Position June 30, 2013 Investment Agency Trust Funds ASSETS Cash and investments 6,104,423 $ 456,429 $ Interest receivable 4,130 325 Total Assets 6,108,553 456,754 LIABILITIES Apportionments payable - 22,928 Agency obligations - 433,826 Total Liabilities - 456,754 NET POSITION Net position held in trust for investment pool participants 6,108,553 - Total Net Position 6,108,553 $ - $ 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, 2013 Investment Trust ADDITIONS Contributions to investment pool 4,208,883 $ Investment earnings 29,747 Total Additions 4,238,630 DEDUCTIONS Distributions from pooled investment accounts 4,170,642 Total Deductions 4,170,642 CHANGE IN NET POSITION 67,988 Net Position, Beginning of Year 6,040,565 NET POSITION, END OF YEAR 6,108,553 $ 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, 2013 25 Note 1: Summary of Significant Accounting Policies The accounting methods and procedures 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, 2013 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, 2013 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 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 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 28 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 has not provided nor obtained any legally binding guarantees during the year ended June 30, 2013, to support the value of pool shares. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 29 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, 2013, are recorded as prepaid expenses/items. Payments made in advance of the receipt of goods or property are recorded as deposits. In the fund financial statements, prepaid times 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 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 30 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, 2013, 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 by the County Auditor’s Office 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 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 31 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. 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 32 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. P. Implementation of Governmental Accounting Standards Board Statements The following GASB Statements have been implemented in the current financial statements: GASB Statement No. 61 – The Financial Reporting Entity: Omnibus. In November 2010, GASB issued this Statement to modify existing requirements for the assessment of potential component units (as stated in GASB Statement No. 14 – The Financial Reporting Entity and Statement No. 34 – Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments) in determining what should be included in the financial reporting entity and financial ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 33 reporting disclosure requirements. Using the new guidance, the County determined that GASB Statement No. 61 has an impact on this year’s financial statements resulting in the reporting of Alpine County Children and Families Commission as a discretely presented component unit of the County. GASB Statement No. 62 – Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This Statement incorporates into the GASB’s authoritative literature certain accounting and financial reporting guidance that is included in Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board Opinions, and Accounting Research Bulletins of the American Institute of Certified Public Accountants (AICPA) Committee on Accounting Procedures which does not conflict with or contradict other GASB pronouncements. The County incorporated this Statement in these financial statements for the fiscal year ended June 30, 2013. The implementation of this Statement did not have a significant impact on the County’s financial statements. GASB Statement No. 63 – The Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. In June 2011, GASB released this Statement to provide financial reporting guidance for two new financial statement elements introduced in Concepts Statement No. 4, Elements of Financial Statements – deferred outflows of resources and deferred inflows of resources. Deferred outflows of resources are defined as a consumption of net position that is applicable to a future reporting period. Deferred inflows of resources are defined as an acquisition of net position that is applicable to a future reporting period. Concepts Statement No. 4 also identifies net position as the residual of all other elements presented in a statement of financial position. Accordingly, the Statement also amends the net asset reporting requirements in GASB Statement No. 34 by incorporating deferred outflows of resources and deferred inflows of resources into the residual measure as net position, rather than net assets. As of July 1, 2012, the County adopted the provisions of this Statement, which did not have a significant impact on the County’s financial statements. Q. 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 March 2012, the GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities. The objective of this statement is to either properly classify certain items that were previously reported as assets and liabilities as deferred outflows of resources or deferred inflows of resources or recognize certain items that were previously reported as assets and liabilities as outflows of resources (expenses or expenditures) or inflows of resources (revenues). These determinations are based on the definitions of those elements in Concepts Statement No. 4, Elements of Financial Statements. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2014. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 34 In March 2012, the GASB issued Statement No. 66, Technical Corrections – 2012 – An Amendment of GASB Statements No. 10 and No. 62. The objective of this statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54 and No. 62. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2014. In June 2012, the GASB issued Statement No. 67, Financial Reporting for Pension Plans – An Amendment of GASB Statement No. 25. The objective of this statement is to improve financial reporting by state and local governmental pension plans. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2014. 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. 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. 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. Note 2: Cash and Investments At June 30, 2013, total County cash and investments were as follows: Cash: Cash on hand 221 $ Imprest accounts 355 Deposits 103,653 Total Cash 104,229 Investments: In Treasurer's Pool 30,547,074 Held with Third Party Agent 1,164,528 Total Cash and Investments 31,815,831 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 35 Total cash and investments at June 30, 2013 were presented on the County’s financial statements as follows: Primary government 25,254,979 $ Investment trust fund 6,104,423 Agency funds 456,429 Total Cash and Investments 31,815,831 $ 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, 2013 36 At June 30, 2013, 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% 10/15/13 - 8/31/16 1,590,000 $ 1,610,198 $ 683 Federal Agency Obligations 0.430% - 2.50% 8/20/13 - 3/9/18 4,725,000 4,789,299 631 Money Market Mutual Funds Variable On Demand 12,654 12,654 0 LAIF Variable On Demand 24,134,923 24,134,923 0 30,462,577 $ 30,547,074 $ 135 Investments held by Third Party Agent: Money Market Mutual Funds Variable On Demand 1,164,528 $ 1,164,528 $ 0 A copy of the County investment policy is available upon request from the Alpine County Treasurer-Tax Collector-Auditor-Controller at P.O. Box 266, Markleeville CA 96120. 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, 2013, the County’s portfolio WAM associated with the investment pool was 135 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, 2013 37 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, 2013. Credit Rating % Investments In Pool Moody's/S&P Holdings Federal Agency Obligations Aaa/AA+ 15.68% U.S. Treasuries Aaa/AA+ 5.27% Money Market Mutual Funds Aaa/AAA 0.04% LAIF Not Rated 79.01% 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, 2013, the County’s investment position in LAIF was $24,134,923, 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 $58.8 billion. Of that amount, 3.92% was invested in structured notes and asset-backed securities with the remaining 96.08% invested in other non-derivative financial products. The average maturity of PMIA investments was 278 days as of June 30, 2013. 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, 2013, involuntary participants of the County’s investment pool totaled $6,040,735. 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, 2013 38 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, 2013: Statement of Net Position Net position held for pool participants 30,650,948 $ Equity of internal pool participants 24,546,525 $ Equity of external pool participants 6,104,423 Total Net Position 30,650,948 $ Statement of Changes in Net Position Investment earnings 121,005 $ Investment expenses (16,600) Net contributions from pool participants 472,311 Decrease in Net Position 576,716 Net Position at July 1, 2012 30,074,232 Net Position at June 30, 2013 30,650,948 $ 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, 2013 39 The composition of interfund balances classified as due to / from other funds as of June 30, 2013 is as follows: Receivable Fund Payable Fund Amount General Fund Road Fund 125,000 $ Mental Health Services Act 6,901 Realignment Fund 282 Other Governmental Funds 35,035 167,218 Road Fund Other Governmental Funds 114,912 Mental Health Services Act Other Governmental Funds 9,712 STPUD Mitigation General Fund 300,000 Other Governmental Funds 265,031 565,031 Realignment Fund Other Governmental Funds 35,006 Other Governmental Funds General Fund 3,287 Mental Health Services Act 12,109 STPUD Mitigation 46,223 Realignment Fund 467,541 Other Governmental Funds 407,541 936,701 1,828,580 $ The composition of interfund balances classified as advances to and from other funds as of June 30, 2013 is as follows: Receivable Fund Payable Fund Amount Purpose STPUD Mitigation Other Governmental Funds 38,100 $ Capital asset funding ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 40 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, 2013: Transfers Between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Road Fund 125,000 $ STPUD Mitigation 300,000 Other Governmental Funds 399,804 824,804 STPUD Mitigation Other Governmental Funds 475,898 Realignment Fund General Fund 65,986 Other Governmental Funds 936,421 1,002,407 Other Governmental Funds General Fund 76,667 Other Governmental Funds 554,183 630,850 2,933,959 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 41 Note 4: Capital Assets Capital assets activity for the fiscal year ended June 30, 2013 was as follows: Balance Balance July 1, 2012 Additions Retirements Transfers June 30, 2013 Governmental Activities: Total capital assets, not being depreciated Land 1,119,288 $ - $ - $ - $ 1,119,288 $ Construction in progress 6,029,708 1,119,056 (151,358) (5,455,838) 1,541,568 Total capital assets, not being depreciated 7,148,996 1,119,056 (151,358) (5,455,838) 2,660,856 Total capital assets, being depreciated Structures and improvements 6,020,634 58,625 - 3,601,251 9,680,510 Equipment 7,022,667 1,160,948 - 1,854,587 10,038,202 Infrastructure 34,694,917 - - - 34,694,917 Total capital assets, being depreciated 47,738,218 1,219,573 - 5,455,838 54,413,629 Less accumulated depreciation for: Structures and improvements (2,878,469) (285,411) - - (3,163,880) Equipment (5,867,232) (611,221) - - (6,478,453) Infrastructure (33,613,242) (27,407) - - (33,640,649) Total accumulated depreciation (42,358,943) (924,039) - - (43,282,982) Total capital assets, being depreciated, net 5,379,275 295,534 - 5,455,838 11,130,647 Governmental activities capital assets, net 12,528,271 $ 1,414,590 $ (151,358) $ - $ 13,791,503 $ 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 (18,912) (7,565) - - (26,477) Total accumulated depreciation (18,912) (7,565) - - (26,477) Business-type capital assets, net 34,043 $ (7,565) $ - $ - $ 26,478 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 42 Depreciation expense was charged to governmental functions as follows: General government 354,490 $ Public protection 294,761 Public ways and facilities 182,799 Health and sanitation 9,102 Public assistance 13,279 Recreation and cultural services 69,608 Total depreciation expense - governmental activities 924,039 $ 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, 2013: Balance Balance Amounts Due July 1, 2012 Additions Retirements June 30, 2013 Within One Year Governmental Activities: Capital leases payable 350,000 $ 1,300,000 $ (370,520) $ 1,279,480 $ 64,924 $ Compensated absences 430,140 279,950 (215,070) 495,020 247,510 Liability for claims costs 351,956 398,497 (372,264) 378,189 378,189 1,132,096 $ 1,978,447 $ (957,854) $ 2,152,689 $ 690,623 $ The STPUD Mitigation 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 On March 19, 2013, the County Board of Supervisors approved entering into a capital lease financing for $1.3 million to partially fund construction costs for new and remodeled County offices and related facilities located in Markleeville and Woodfords. The project costs are estimated at $5,276,828, to be completed by June 2014. The term of the lease is 15 years with annual payments of $112,296 at an effective interest rate of 3.75 percent per annum. Payment of the lease is secured by the County’s existing administrative and court house buildings. The new structures and improvements will become the property of the County when all terms of the lease agreement are met. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 43 The following is a summary of the County’s capital lease agreement as of June 30, 2013: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2013 Alpine County Government Center 3.75% 1,279,480 $ Included in the governmental activities are the following capital asset amounts under capital leases: Construction in progress 257,432 $ As of June 30, 2013, future minimum lease payments under capital leases were as follows: Year Ending June 30: 2014 112,296 $ 2015 112,296 2016 112,296 2017 112,296 2018 112,296 2019-2023 561,478 2024-2028 561,478 Total Future Minimum Lease Payments 1,684,436 Less: Interest (404,956) Present Value of Minimum Lease Payments 1,279,480 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 44 Note 7: Net position / Fund Balances Fund balances of governmental funds at June 30, 2013 are as follows: Mental General Road Health STPUD Realignment Other Fund Fund Services Act Mitigation Fund Governmental Total Nonspendable: Permanent funds - $ - $ - $ - $ - $ 400,000 $ 400,000 $ Advances - - - 38,100 - - 38,100 Deposits 1,331,093 - - - - - 1,331,093 Prepaid expenses 8,066 743 - - - 1,473 10,282 Inventories - 141,270 - - - - 141,270 Total Nonspendable 1,339,159 142,013 - 38,100 - 401,473 1,920,745 Restricted: Public protection - - - - 387,337 1,980,142 2,367,479 Public ways and facilties - 1,590,610 - - - 568,403 2,159,013 Health and sanitation - - 5,824,566 - 2,028,519 1,092,189 8,945,274 Public assistance - - - - 1,303,666 574,342 1,878,008 Capital projects - - - - - 85,985 85,985 CSA - - - - - 418,307 418,307 Debt service - - - - - 1,004,131 1,004,131 Other 322,706 - - - - 164,021 486,727 Total Restricted 322,706 1,590,610 5,824,566 - 3,719,522 5,887,520 17,344,924 Committed: Capital projects - - - 3,244,892 - - 3,244,892 Total Committed - - - 3,244,892 - - 3,244,892 Assigned: General reserve 1,000,000 - - - - - 1,000,000 Cash flow 364,860 - - - - - 364,860 Critical services 425,000 - - - - - 425,000 Capital projects - - - - - 591,566 591,566 Post-employment benefits 510,897 - - - - - 510,897 Eliminate projected 2013-14 budgetary deficit 1,240,561 - - - - - 1,240,561 Other - - - - - 52,410 52,410 Total Assigned 3,541,318 - - - - 643,976 4,185,294 Unassigned 488,741 - - - - (208,921) 279,820 Total Fund Balances 5,691,924 $ 1,732,623 $ 5,824,566 $ 3,282,992 $ 3,719,522 $ 6,724,048 $ 26,975,675 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 45 Net position from governmental activities is of June 30, 2013, were restricted for the following purposes: Capital projects 85,985 $ Public protection 2,367,652 Public ways and facilities 2,301,026 Health and sanitation 8,945,274 Public assistance 1,879,308 County Service Area #1 418,307 Other: Trust for Public Land 452,410 Administrative Services 164,021 16,613,983 $ Deficit fund balances / net position as of June 30, 2013, were as follows: Governmental Funds: Markleeville Pipeline Prop. 50 Grant 87,591 $ County Road Improvement 58,565 Alpine County Government Center project 17,397 State OES Grants 6,767 Public Safety Miscellaneous Grants 8,145 District Attorney Victim Witness Grant 18,692 Alpine County Transportation Commission 11,763 Proprietary Funds Alpine Transit Service 13,635 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, 2013 46 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, 2012, as previously reported 37,424,361 $ 5,516,689 $ Restatements and corrections: Correct prior year revenues 5,319 5,319 Total restatements and corrections 5,319 5,319 Fund balances / net position, July 1, 2012, as restated 37,429,680 $ 5,522,008 $ 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, 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. With the exception of those members subject to PEPRA, 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 47 Administration. The required employer contribution rate for fiscal 2012/2013 was 15.577 percent for miscellaneous employees and 34.282 percent for safety employees. For those members subject to PEPRA, the required employer contribution rate for fiscal 2012/2013 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. For other than PEPRA members, 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 2012/2013, the County’s annual pension cost of $509,234 for the miscellaneous plan, $398,531 for the safety plan and $2,488 under PEPRA was equal to the County’s required and actual contributions. The required contribution was determined as part of the June 30, 2010 actuarial valuation for the cost-sharing pool. The table below presents three year trend information. Annual Percentage Net Pension of APC Pension Fiscal Year Ending: Cost (APC) Contributed Obligation Miscellaneous Plan: 6/30/2011 390,663 $ 100% - $ 6/30/2012 463,416 100% - 6/30/2013 509,234 100% - Safety Plan: 6/30/2011 304,567 $ 100% - $ 6/30/2012 374,113 100% - 6/30/2013 398,531 100% - PEPRA: 6/30/2013 2,488 100% - 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, 2013 48 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 502,078 $ Interest on prior year net OPEB obligation 29,686 Amortization of prior year net OPEB obligation (29,726) Annual OPEB Cost 502,038 Contributions made (395,830) Increase in net OPEB obligation 106,208 Net OPEB obligation, beginning of year 791,899 Net OPEB obligation, end of year 898,107 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Basic Financial Statements For the Year Ended June 30, 2013 49 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 2011 518,046 $ 465,778 $ 328,438 $ 70.51% 655,386 $ 2012 655,386 484,285 347,772 71.81% 791,899 2013 791,899 502,038 395,830 78.84% 898,107 Funded Status and Funding Progress The funded status of the plan as of January 1, 2011, the plan’s most recent actuarial valuation date, was as follows: Actuarial accrued liability (AAL) 7,331,896 $ Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 7,331,896 $ Funded ratio (actuarial value of plan assets / AAL) 0.00% Covered payroll (active plan members) 4,061,109 $ UAAL as a percentage of covered payroll 180.54% 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, 2013 50 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, 2011 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 4.5 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 9.5 percent in 2012, then by ½ percent less each year until 2016 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, 2011 was 29 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, 2013, the balance of the deposit was $1,331,093. 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, 2013 51 Changes in the balance of claims liability during the fiscal years ended June 30, 2013 and 2012 were as follows: 2013 2012 Unpaid claims, beginning of year 351,956 $ 302,347 $ Current year claims (including incurred but not reported) 398,497 254,910 Claims payments and changes in estimates (372,264) (205,301) Unpaid claims, end of the year 378,189 $ 351,956 $ 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, 2013, the County had ongoing construction commitments that totaled approximately $4.5 million. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2013 52 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% ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule General Fund Variance with For the Year Ended June 30, 2013 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 5,986,230 $ 5,986,230 $ 5,986,230 $ - $ RESOURCES (inflows): Taxes 5,173,316 5,173,316 5,778,779 605,463 Licenses and permits 32,695 32,695 33,717 1,022 Fines, forfeitures and penalties 3,020 2,120 43,834 41,714 Use of money and property 72,430 72,430 47,380 (25,050) Intergovernmental 429,150 394,975 360,247 (34,728) Charges for services 807,054 792,954 752,063 (40,891) Other revenues 25,000 51,050 33,696 (17,354) Transfers from other funds 246,078 295,253 142,653 (152,600) Amounts Available for Appropriation 12,774,973 12,801,023 13,178,599 377,576 CHARGES TO APPROPRIATIONS (outflows): General government: Board of Supervisors 518,290 509,290 503,207 6,083 Personnel 127,914 127,914 118,461 9,453 Auditor-Controller 394,969 369,969 357,273 12,696 OMB 87 Central Services 181,300 141,300 110,730 30,570 General Central Services 32,600 32,600 25,359 7,241 Information Technology 237,204 237,204 162,988 74,216 Treasurer-Tax Collector 207,581 207,581 207,748 (167) Assessors 345,724 335,724 325,457 10,267 Elections 20,632 20,632 18,415 2,217 Buildings & Grounds 500,076 526,126 426,384 99,742 Risk Management 142,500 140,000 64,086 75,914 Retiree Benefits 310,789 310,789 330,544 (19,755) Legal Counsel 244,196 368,196 274,965 93,231 Perry Walther Building 14,239 14,239 12,669 1,570 Total General Government 3,278,014 3,341,564 2,938,286 403,278 Public protection: County Clerk 224,026 224,026 217,557 6,469 Recorder 52,409 52,409 46,685 5,724 Surveyor / Engineer 20,000 20,000 11,325 8,675 Grand Jury 11,088 11,088 7,782 3,306 District Attorney 333,687 333,957 264,686 69,271 Public Defender 70,000 70,000 48,940 21,060 Sheriff / Coroner 1,608,059 1,608,059 1,559,799 48,260 Jail 55,000 55,000 55,000 - Communications 131,901 131,901 122,271 9,630 continued 53 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund Variance with For the Year Ended June 30, 2013 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Probation 91,580 91,580 85,480 6,100 Bear Valley Fire Department 44,988 44,988 25,045 19,943 Kirkwood Fire Department / EMS 12,500 12,500 - 12,500 East Slope Fire / EMS 203,522 203,522 195,067 8,455 Agricultural Commission 13,775 13,775 13,727 48 Planning Department 117,624 117,624 110,887 6,737 Local Agency Formation 2,179 2,179 741 1,438 Total Public Protection 2,992,338 2,992,608 2,764,992 227,616 Health and sanitation: County Emergency Services 89,000 89,000 70,073 18,927 Kirkwood EMS 18,398 18,398 211 18,187 Bear Valley EMS 12,665 12,665 12,436 229 Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 17,332 17,332 15,955 1,377 Total Health and Sanitation 159,259 159,259 120,539 38,720 Public assistance: Community Development 454,129 454,129 430,393 23,736 Social Services Assistance 98,350 98,350 62,951 35,399 General Relief 3,750 3,750 375 3,375 Total Public Assistance 556,229 556,229 493,719 62,510 Education: Superintendent of Schools 55,807 55,807 55,174 633 Library 243,226 243,226 237,383 5,843 Total Education 299,033 299,033 292,557 6,476 Recreation and cultural services: Museum 31,218 33,718 30,509 3,209 Transfers to other funds: General Contribution 662,698 922,698 793,313 129,385 Total Charges to Appropriations 7,978,789 8,305,109 7,433,915 871,194 BUDGETARY FUND BALANCE, JUNE 30 4,796,184 $ 4,495,914 $ 5,744,684 $ 1,248,770 $ continued 54 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2013 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 13,178,599 $ 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 (5,986,230) Revenues from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes 154,407 A87 cost reimbursement is a budgetary resource but is not current-year revenue for financial reporting purposes (495,435) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (142,653) Total revenues as reported on the statement of revenues expenditures, and changes in fund balances - governmental funds 6,708,688 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 7,433,915 $ 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 65,476 The County does not include the deposit held by the claims administrator for budgetary purposes 113,200 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 (495,435) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (796,313) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 6,320,843 $ 55 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund Variance with For the Year Ended June 30, 2013 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 1,752,821 $ 1,752,821 $ 1,752,821 $ - $ RESOURCES (inflows): Licenses and permits 600 600 765 165 Fines, forfeitures and penalties 1,000 1,000 488 (512) Use of money and property 11,200 11,200 6,459 (4,741) Intergovernmental 1,436,812 1,436,812 1,336,179 (100,633) Charges for services 450,000 450,000 478,977 28,977 Other revenues - - 18,721 18,721 Transfers from other funds 125,000 125,000 125,000 - Amounts Available for Appropriation 3,777,433 3,777,433 3,719,410 (58,023) CHARGES TO APPROPRIATIONS (outflows): Public ways and facilities 2,275,453 2,275,453 1,986,787 288,666 Total Charges to Appropriations 2,275,453 2,275,453 1,986,787 288,666 BUDGETARY FUND BALANCE, JUNE 30 1,501,980 $ 1,501,980 $ 1,732,623 $ 230,643 $ 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 3,719,410 $ 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 (1,752,821) Equipment rental revenue is generated intrafund and reported as a budgetary resource but eliminated for financial reporting purposes and not considered current-year revenue (122,380) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (125,000) Total revenues as reported on the statement of revenues expenditures and changes in fund balances - governmental funds 1,719,209 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,986,787 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 (122,380) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,864,407 $ 56 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act Variance with For the Year Ended June 30, 2013 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 5,105,405 $ 5,105,405 $ 5,105,405 $ - $ RESOURCES (inflows): Use of money and property 26,900 26,900 20,621 (6,279) Intergovernmental 737,422 737,422 1,449,932 712,510 Other revenues - - 12,023 12,023 Amounts Available for Appropriation 5,869,727 5,869,727 6,587,981 718,254 CHARGES TO APPROPRIATIONS (outflows): Health and Sanitation 1,022,780 1,022,780 763,415 259,365 Total Charges to Appropriations 1,022,780 1,022,780 763,415 259,365 BUDGETARY FUND BALANCE, JUNE 30 4,846,947 $ 4,846,947 $ 5,824,566 $ 977,619 $ 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 6,587,981 $ 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 (5,105,405) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,482,576 $ 57 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule STPUD Mitigation Variance with For the Year Ended June 30, 2013 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 3,651,264 $ 3,651,264 $ 3,651,264 $ - $ RESOURCES (inflows): Use of money and property 21,100 21,100 16,586 (4,514) Charges for services 150,000 150,000 162,809 12,809 Transfers in - 300,000 300,000 - Amounts Available for Appropriation 3,822,364 4,122,364 4,130,659 8,295 CHARGES TO APPROPRIATIONS (outflows): Debt service 72,000 372,000 371,769 231 Transfers out 3,200,000 2,493,583 475,898 2,017,685 Total Charges to Appropriations 3,272,000 2,865,583 847,667 2,017,916 BUDGETARY FUND BALANCE, JUNE 30 550,364 $ 1,256,781 $ 3,282,992 $ 2,026,211 $ 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 4,130,659 $ 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 (3,651,264) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (300,000) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 179,395 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 847,667 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (475,898) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 371,769 $ 58 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund Variance with For the Year Ended June 30, 2013 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 3,240,605 $ 3,240,605 $ 3,240,605 $ - $ RESOURCES (inflows): Use of money and property 20,400 20,400 14,067 (6,333) Intergovernmental 1,377,333 1,377,333 1,467,257 89,924 Amounts Available for Appropriation 4,638,338 4,638,338 4,721,929 83,591 CHARGES TO APPROPRIATIONS (outflows) Public protection - 15,000 - 15,000 Transfers out to other funds 1,059,083 1,059,083 1,002,407 56,676 Total Charges to Appropriations 1,059,083 1,074,083 1,002,407 71,676 BUDGETARY FUND BALANCE, JUNE 30 3,579,255 $ 3,564,255 $ 3,719,522 $ 155,267 $ 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 4,721,929 $ 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 (3,240,605) Total revenues as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 1,481,324 $ Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,002,407 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (1,002,407) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds - $ 59 ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2013 60 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, 2013 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total ASSETS Cash and investments 4,299,768 $ 452,097 $ 693,447 $ 1,232,223 $ 6,677,535 $ Accounts receivable 117,783 - - - 117,783 Taxes receivable 39,672 - - - 39,672 Due from other governments 615,365 - 144,473 - 759,838 Interest receivable 2,568 313 230 - 3,111 Prepaid expenses 1,473 - - - 1,473 Due from other funds 629,759 - 277,602 29,340 936,701 Total Assets 5,706,388 $ 452,410 $ 1,115,752 $ 1,261,563 $ 8,536,113 $ LIABILITIES Accounts payable 225,121 $ - $ 50,779 $ - $ 275,900 $ Accrued salaries and benefits 86,762 - - - 86,762 Due to other funds 199,831 - 409,974 257,432 867,237 Advances from other funds 38,100 - - - 38,100 Total Liabilities 549,814 - 460,753 257,432 1,267,999 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 403,065 - 141,001 - 544,066 FUND BALANCES Nonspendable 1,473 400,000 - - 401,473 Restricted 4,797,404 - 85,985 1,004,131 5,887,520 Assigned - 52,410 591,566 - 643,976 Unassigned (45,368) - (163,553) - (208,921) Total Fund Balances 4,753,509 452,410 513,998 1,004,131 6,724,048 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,706,388 $ 452,410 $ 1,115,752 $ 1,261,563 $ 8,536,113 $ 61 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2013 Permanent Special Fund Capital Debt Revenue TPL Tax Projects Service Funds Exchange Funds Fund Total REVENUES Taxes 73,657 $ - $ - $ - $ 73,657 $ Licenses and permits 70,734 - - - 70,734 Fines, forfeitures and penalties 1,819 - - - 1,819 Use of money and property 32,968 1,702 806 13 35,489 Intergovernmental 3,414,643 - 507,190 - 3,921,833 Charges for services 834,930 - - - 834,930 Other revenues 47,930 - - - 47,930 Total Revenues 4,476,681 1,702 507,996 13 4,986,392 EXPENDITURES Current: General government 80,516 1,389 - - 81,905 Public protection 1,623,633 - - - 1,623,633 Public ways and facilities 465,847 - - - 465,847 Health and sanitation 1,466,826 - - - 1,466,826 Public assistance 1,189,665 - - - 1,189,665 Education 8,994 - - - 8,994 Capital outlay 65,437 - 1,849,711 - 1,915,148 Debt service: Principal - - - 20,520 20,520 Interest and issuance cost - - - 47,270 47,270 Total Expenditures 4,900,918 1,389 1,849,711 67,790 6,819,808 Excess (Deficiency) of Revenues Over (Under) Expenditures (424,237) 313 (1,341,715) (67,777) (1,833,416) OTHER FINANCING SOURCES AND USES Issuance of capital lease financing - - - 1,300,000 1,300,000 Transfers in 1,189,413 - 1,147,553 29,340 2,366,306 Transfers out (373,418) - - (257,432) (630,850) Total Other Financing Sources (Uses) 815,995 - 1,147,553 1,071,908 3,035,456 NET CHANGES IN FUND BALANCES 391,758 313 (194,162) 1,004,131 1,202,040 Fund Balances, Beginning of Year 4,356,432 452,097 708,160 - 5,516,689 Prior period adjustments 5,319 - - - 5,319 FUND BALANCES, END OF YEAR 4,753,509 $ 452,410 $ 513,998 $ 1,004,131 $ 6,724,048 $ 62 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2013 State Prop Public Mental Drug and 36 Health Health Alcohol SACPA ASSETS Cash and investments (12,322) $ 172,716 $ 401,829 $ 281,250 $ Accounts receivable 12,487 11,577 - - Taxes receivable - - - - Due from other governments 20,756 70,568 - - Interest receivable 19 292 194 Prepaid expenses - - - - Due from other funds 119,165 - 12,085 - Total Assets 140,077 $ 254,880 $ 414,206 $ 281,444 $ LIABILITIES Accounts payable 14,916 $ 6,631 $ 16,322 $ - $ Accrued salaries and benefits 14,291 2,104 3,375 - Due to other funds 3,769 13,358 11,684 - Advances from other funds 38,100 - - - Total Liabilities 71,076 22,093 31,381 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues 19,801 24,326 - - FUND BALANCES Nonspendable - - - - Restricted 49,200 208,461 382,825 281,444 Unassigned - - - - Total Fund Balances 49,200 208,461 382,825 281,444 Total Liabilities, Deferred Inflows of Resources and Fund Balances 140,077 $ 254,880 $ 414,206 $ 281,444 $ continued 63 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 Social One-Stop Court Services Services Tobacco Services ASSETS Cash and investments 274,370 $ 15,271 $ 71,928 $ 28,543 $ Accounts receivable 1,199 6,045 - - Taxes receivable - - - - Due from other governments 163,904 - - - Interest receivable 194 10 34 16 Prepaid expenses 1,300 - - - Due from other funds 335,149 - 42,111 - Total Assets 776,116 $ 21,326 $ 114,073 $ 28,559 $ LIABILITIES Accounts payable 23,734 $ 4,612 $ 17,792 $ 28,517 $ Accrued salaries and benefits 18,042 - 1,814 - Due to other funds 6,143 5,365 28,589 - Advances from other funds - - - - Total Liabilities 47,919 9,977 48,195 28,517 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 163,904 - - - Fund Balances: Nonspendable 1,300 - - - Restricted 562,993 11,349 65,878 42 Unassigned - - - - Total Fund Balances 564,293 11,349 65,878 42 Total Liabilities, Deferred Inflows of Resources and Fund Balances 776,116 $ 21,326 $ 114,073 $ 28,559 $ continued 64 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 Water Fish and Rights Game Building Airport ASSETS Cash and investments 5,665 $ 50,048 $ 18,354 $ 35,491 $ Accounts receivable - 230 5,010 - Taxes receivable - - - - Due from other governments - - - - Interest receivable 4 48 8 21 Prepaid expenses - - - - Due from other funds - - - - Total Assets 5,669 $ 50,326 $ 23,372 $ 35,512 $ LIABILITIES Accounts payable - $ 600 $ 3,331 $ - $ Accrued salaries and benefits - - 5,344 - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - 600 8,675 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - - Fund Balances: Nonspendable - - - - Restricted 5,669 49,726 14,697 35,512 Unassigned - - - - Total Fund Balances 5,669 49,726 14,697 35,512 Total Liabilities, Deferred Inflows of Resources and Fund Balances 5,669 $ 50,326 $ 23,372 $ 35,512 $ continued 65 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 District Parking Attorney Youth CC Perf. Records Victim Offender Incentives Mgmt Witness Block Grant Fund ASSETS Cash and investments 32,415 $ 12,870 $ 90,770 $ 213,597 $ Accounts receivable - - 23,630 41,191 Taxes receivable - - - - Due from other governments - 11,444 - - Interest receivable 22 8 73 142 Prepaid expenses - - - - Due from other funds - - - - Total Assets 32,437 $ 24,322 $ 114,473 $ 254,930 $ LIABILITIES Accounts payable - $ - $ 31,409 $ - $ Accrued salaries and benefits 145 999 - - Due to other funds - 30,571 - - Advances from other funds - - - - Total Liabilities 145 31,570 31,409 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 11,444 - - Fund Balances: Nonspendable - - - - Restricted 32,292 - 83,064 254,930 Unassigned - (18,692) - - Total Fund Balances 32,292 (18,692) 83,064 254,930 Total Liabilities, Deferred Inflows of Resources and Fund Balances 32,437 $ 24,322 $ 114,473 $ 254,930 $ continued 66 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 Cal-Mmet Sheriff Sheriff COPS Sheriff Anti-Drug OHV Grant Grants Grants Grants ASSETS Cash and investments 167,581 $ 157,143 $ - $ 7,406 $ Accounts receivable - - 15,448 - Taxes receivable - - - - Due from other governments 26,255 18,950 - 10,458 Interest receivable 115 92 5 Prepaid expenses 50 - - - Due from other funds - 148 743 - Total Assets 194,001 $ 176,333 $ 16,190 $ 17,869 $ LIABILITIES Accounts payable - $ - $ 1,131 $ - $ Accrued salaries and benefits 6,888 - - - Due to other funds 148 4,857 2,114 - Advances from other funds - - - - Total Liabilities 7,036 4,857 3,245 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 5,314 Fund Balances: Nonspendable 50 - - - Restricted 186,915 171,476 12,945 12,555 Unassigned - - - - Total Fund Balances 186,965 171,476 12,945 12,555 Total Liabilities, Deferred Inflows of Resources and Fund Balances 194,001 $ 176,333 $ 16,190 $ 17,869 $ continued 67 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 State Law Assessor's Recorder's OES Enforcement Special Special Grants AB443 Revenue Fund Revenue Fund ASSETS Cash and investments - $ 939,307 $ 26,890 $ 99,083 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 17,817 71,631 - - Interest receivable (12) 635 19 68 Prepaid expenses - 98 - - Due from other funds - 36,128 - - Total Assets 17,805 $ 1,047,799 $ 26,909 $ 99,151 $ LIABILITIES Accounts payable 966 $ - $ - $ - $ Accrued salaries and benefits - 28,487 - - Due to other funds 21,036 677 - - Advances from other funds - - - - Total Liabilities 22,002 29,164 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues 2,570 - - - Fund Balances: Nonspendable - 98 - - Restricted - 1,018,537 26,909 99,151 Unassigned (6,767) - - - Total Fund Balances (6,767) 1,018,635 26,909 99,151 Total Liabilities, Deferred Inflows of Resources and Fund Balances 17,805 $ 1,047,799 $ 26,909 $ 99,151 $ continued 68 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste ASSETS Cash and investments 7,319 $ 416,733 $ 87,481 $ 32,499 $ Accounts receivable - - - 777 Taxes receivable - 23,972 - - Due from other governments - - - - Interest receivable 5 245 36 19 Prepaid expenses - - 25 - Due from other funds - - - - Total Assets 7,324 $ 440,950 $ 87,542 $ 33,295 $ LIABILITIES Accounts payable - $ 200 $ - $ 5,232 $ Accrued salaries and benefits - - 5,273 - Due to other funds - - 1,100 - Advances from other funds - - - - Total Liabilities - 200 6,373 5,232 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - 22,443 - - Fund Balances: Nonspendable - - 25 - Restricted 7,324 418,307 81,144 28,063 Unassigned - - - - Total Fund Balances 7,324 418,307 81,169 28,063 Total Liabilities, Deferred Inflows of Resources and Fund Balances 7,324 $ 440,950 $ 87,542 $ 33,295 $ continued 69 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 Alpine County Local State Transit Chamber of Transportation Transportation Assistance Commerce Commission Fund Fund Programs ASSETS Cash and investments - $ 69,028 $ 11,441 $ - $ Accounts receivable - - - - Taxes receivable - 15,700 - - Due from other governments 41,345 - 1,779 - Interest receivable 57 8 - Prepaid expenses - - - - Due from other funds 2,800 21,345 - - Total Assets 44,137 $ 106,130 $ 13,228 $ - $ LIABILITIES Accounts payable 22,500 $ - $ - $ - $ Accrued salaries and benefits - - - - Due to other funds 21,345 2,800 - - Advances from other funds - - - - Total Liabilities 43,845 2,800 - - DEFERRED INFLOWS OF RESOURCES Unavailable revenues 12,055 - - - Fund Balances: Nonspendable - - - - Restricted - 103,330 13,228 - Unassigned (11,763) - - - Total Fund Balances (11,763) 103,330 13,228 - Total Liabilities, Deferred Inflows of Resources and Fund Balances 44,137 $ 106,130 $ 13,228 $ - $ continued 70 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 Public Behavioral Fire SAFER Health Health Protection Grant Misc. Grants Misc. Grants ASSETS Cash and investments 103,697 $ - $ 130,589 $ 5,058 $ Accounts receivable 189 - - - Taxes receivable - - - - Due from other governments - - 118,380 - Interest receivable 117 - 95 1 Prepaid expenses - - - - Due from other funds - - 85 - Total Assets 104,003 $ - $ 249,149 $ 5,059 $ LIABILITIES Accounts payable 2,519 $ 1 $ 21,422 $ - $ Accrued salaries and benefits - - - - Due to other funds - - 38,088 - Advances from other funds - - - - Total Liabilities 2,519 1 59,510 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - 118,380 - Fund Balances: Nonspendable - - - - Restricted 101,484 - 71,259 5,059 Unassigned - - - Total Fund Balances 101,484 71,259 5,059 Total Liabilities, Deferred Inflows of Resources and Fund Balances 104,003 $ - $ 249,149 $ 5,059 $ continued 71 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2013 Public Other Safety Miscellaneous Misc. Grants Grants Total ASSETS Cash and investments 48 $ 345,670 $ 4,299,768 $ Accounts receivable - - 117,783 Taxes receivable - - 39,672 Due from other governments 13,078 29,000 615,365 Interest receivable 2 2,568 Prepaid expenses - - 1,473 Due from other funds - 60,000 629,759 Total Assets 13,120 $ 434,672 $ 5,706,388 $ LIABILITIES Accounts payable - $ 23,286 $ 225,121 $ Accrued salaries and benefits - - 86,762 Due to other funds 8,187 - 199,831 Advances from other funds - - 38,100 Total Liabilities 8,187 23,286 549,814 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 13,078 9,750 403,065 Fund Balances: Nonspendable - - 1,473 Restricted - 401,636 4,797,404 Unassigned (8,145) - (45,368) Total Fund Balances (8,145) 401,636 4,753,509 Total Liabilities, Deferred Inflows of Resources and Fund Balances 13,120 $ 434,672 $ 5,706,388 $ 72 ---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, 2013 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 13,946 65 1,645 1,056 Intergovernmental 126,784 189,120 194,305 - Charges for services 152,741 - - - Other revenues 2,808 - - - Total Revenues 296,279 189,185 195,950 1,056 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation 610,735 224,349 266,493 - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 610,735 224,349 266,493 - Excess (Deficiency) of Revenues Over (Under) Expenditures (314,456) (35,164) (70,543) 1,056 OTHER FINANCING SOURCES (USES) Transfers in 296,146 200,000 - - Transfers out - - - - Total Other Financing Sources (Uses) 296,146 200,000 - - NET CHANGES IN FUND BALANCES (18,310) 164,836 (70,543) 1,056 Fund Balances, Beginning of Year 67,510 43,625 453,368 280,388 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 49,200 $ 208,461 $ 382,825 $ 281,444 $ 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, 2013 Social One-Stop Court Services Services Tobacco Services REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 6,293 34 283 42 Intergovernmental 788,093 80,826 165,738 - Charges for services - - - - Other revenues 15,379 - - - Total Revenues 809,765 80,860 166,021 42 EXPENDITURES Current: General government - - - - Public protection - - - 28,517 Public ways and facilities - - - - Health and sanitation - - 173,048 - Public assistance 1,120,154 69,511 - - Education - - - - Capital outlay - - - - Total Expenditures 1,120,154 69,511 173,048 28,517 Excess (Deficiency) of Revenues Over (Under) Expenditures (310,389) 11,349 (7,027) (28,475) OTHER FINANCING SOURCES (USES) Transfers in 481,929 - 42,111 28,491 Transfers out (282) - (12,912) - Total Other Financing Sources (Uses) 481,647 - 29,199 28,491 NET CHANGES IN FUND BALANCES 171,258 11,349 22,172 16 Fund Balances, Beginning of Year 393,035 - 43,706 26 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 564,293 $ 11,349 $ 65,878 $ 42 $ 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, 2013 Water Fish and Rights Game Building Airport REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - 70,734 - Fines, forfeitures and penalties - 1,734 - - Use of money and property 27 172 170 127 Intergovernmental - - - 10,000 Charges for services - 52,125 27,834 - Other revenues - - 101 - Total Revenues 27 54,031 98,839 10,127 EXPENDITURES Current: General government - - - - Public protection - 57,202 159,807 - Public ways and facilities - - - 10,818 Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures - 57,202 159,807 10,818 Excess (Deficiency) of Revenues Over (Under) Expenditures 27 (3,171) (60,968) (691) OTHER FINANCING SOURCES (USES) Transfers in - - 21,371 - Transfers out - - - - Total Other Financing Sources (Uses) - - 21,371 - NET CHANGES IN FUND BALANCES 27 (3,171) (39,597) (691) Fund Balances, Beginning of Year 5,642 52,897 54,294 36,203 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 5,669 $ 49,726 $ 14,697 $ 35,512 $ 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, 2013 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 118 370 348 Intergovernmental - 59,751 135,926 164,764 Charges for services 4,943 - - - Other revenues - - - - Total Revenues 5,061 59,744 136,296 165,112 EXPENDITURES Current: General government 7,029 - - - Public protection - 49,116 119,319 6,086 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 7,029 49,116 119,319 6,086 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,968) 10,628 16,977 159,026 OTHER FINANCING SOURCES (USES) Transfers in 3,379 - - - Transfers out - - - - Total Other Financing Sources (Uses) 3,379 - - - NET CHANGES IN FUND BALANCES 1,411 10,628 16,977 159,026 Fund Balances, Beginning of Year 30,881 (29,320) 66,087 95,904 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 32,292 $ (18,692) $ 83,064 $ 254,930 $ 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, 2013 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 731 371 (153) Intergovernmental 119,035 129,212 48,954 36,873 Charges for services - - 650 - Other revenues - - - - Total Revenues 119,766 129,583 49,451 36,871 EXPENDITURES Current: General government - - - - Public protection 159,378 72,491 6,110 15,654 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 159,378 72,491 6,110 15,654 Excess (Deficiency) of Revenues Over (Under) Expenditures (39,612) 57,092 43,341 21,217 OTHER FINANCING SOURCES (USES) Transfers in - - 830 - Transfers out - - - (11,111) Total Other Financing Sources (Uses) - - 830 (11,111) NET CHANGES IN FUND BALANCES (39,612) 57,092 44,171 10,106 Fund Balances, Beginning of Year 226,577 114,384 (31,226) 2,449 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 186,965 $ 171,476 $ 12,945 $ 12,555 $ 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, 2013 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 (74) 3,750 105 368 Intergovernmental 92,744 470,500 - - Charges for services - - 4,006 5,799 Other revenues - 29,642 - - Total Revenues 92,670 503,892 4,111 6,167 EXPENDITURES Current: General government - - 6,366 7,121 Public protection 17,038 652,315 - - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 17,038 652,315 6,366 7,121 Excess (Deficiency) of Revenues Over (Under) Expenditures 75,632 (148,423) (2,255) (954) OTHER FINANCING SOURCES (USES) Transfers in - 45,889 - - Transfers out (66,178) (830) - - Total Other Financing Sources (Uses) (66,178) 45,059 - - NET CHANGES IN FUND BALANCES 9,454 (103,364) (2,255) (954) Fund Balances, Beginning of Year (16,221) 1,121,999 29,164 100,105 Prior period adjustments - - - - FUND BALANCES, END OF YEAR (6,767) $ 1,018,635 $ 26,909 $ 99,151 $ 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, 2013 County Search and Service Bear Valley Bear Valley Rescue Area No. 1 Public Safety Solid Waste REVENUES Taxes - $ 13,657 $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - 85 - - Use of money and property 44 1,316 136 129 Intergovernmental - 363 - - Charges for services - 247,994 245,191 91,214 Other revenues - - - - Total Revenues 44 263,415 245,327 91,343 EXPENDITURES Current: General government - - - - Public protection 2,841 - 185,199 - Public ways and facilities - 173,238 - - Health and sanitation - - - 87,531 Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 2,841 173,238 185,199 87,531 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,797) 90,177 60,128 3,812 OTHER FINANCING SOURCES (USES) Transfers in - 1,000 - 2,000 Transfers out - - (14,343) - Total Other Financing Sources (Uses) - 1,000 (14,343) 2,000 NET CHANGES IN FUND BALANCES (2,797) 91,177 45,785 5,812 Fund Balances, Beginning of Year 10,121 326,111 35,384 22,251 Prior period adjustments - 1,019 - - FUND BALANCES, END OF YEAR 7,324 $ 418,307 $ 81,169 $ 28,063 $ 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, 2013 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 (24) 200 31 - Intergovernmental 173,708 82,937 6,386 - Charges for services - - - - Other revenues - - - - Total Revenues 173,684 83,137 6,417 60,000 EXPENDITURES Current: General government - - - 60,000 Public protection - - - - Public ways and facilities 149,043 55,000 30,000 - Health and sanitation - - - - Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 149,043 55,000 30,000 60,000 Excess (Deficiency) of Revenues Over (Under) Expenditures 24,641 28,137 (23,583) - OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - NET CHANGES IN FUND BALANCES 24,641 28,137 (23,583) - Fund Balances, Beginning of Year (36,404) 70,893 36,811 - Prior period adjustments - 4,300 - - FUND BALANCES, END OF YEAR (11,763) $ 103,330 $ 13,228 $ - $ 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, 2013 Pubic Behavioral Fire SAFER Health Health Protection Grant Misc. Grants Misc. Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 733 - 548 - Intergovernmental 2,939 - 209,439 12,047 Charges for services 2,433 - - - Other revenues - - - - Total Revenues 6,105 - 209,987 12,047 EXPENDITURES Current: General government - - - - Public protection 8,349 - - - Public ways and facilities - - - - Health and sanitation - - 93,621 11,049 Public assistance - - - - Education - - - - Capital outlay - - - - Total Expenditures 8,349 - 93,621 11,049 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,244) - 116,366 998 OTHER FINANCING SOURCES (USES) Transfers in - 4 85 - Transfers out (100,000) - (126,226) - Total Other Financing Sources (Uses) (100,000) 4 (126,141) - NET CHANGES IN FUND BALANCES (102,244) 4 (9,775) 998 Fund Balances, Beginning of Year 203,728 81,034 4,061 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 101,484 $ $ 71,259 $ 5,059 $ continued 81 ---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, 2013 Public Other Safety Miscellaneous Misc. Grants Grants Total REVENUES Taxes - $ - $ 73,657 $ Licenses and permits - - 70,734 Fines, forfeitures and penalties - - 1,819 Use of money and property 34 36 32,968 Intergovernmental 41,649 72,550 3,414,643 Charges for services - - 834,930 Other revenues - - 47,930 Total Revenues 41,683 72,586 4,476,681 EXPENDITURES Current: General government - - 80,516 Public protection 28,296 55,915 1,623,633 Public ways and facilities - 47,748 465,847 Health and sanitation - - 1,466,826 Public assistance - - 1,189,665 Education - 8,994 8,994 Capital outlay - 65,437 65,437 Total Expenditures 28,296 178,094 4,900,918 Excess (Deficiency) of Revenues Over (Under) Expenditures 13,387 (105,508) (424,237) OTHER FINANCING SOURCES (USES) Transfers in - 66,178 1,189,413 Transfers out (41,532) (373,418) Total Other Financing Sources (Uses) (41,532) 66,174 815,995 NET CHANGES IN FUND BALANCES (28,145) (39,334) 391,758 Fund Balances, Beginning of Year 20,000 440,970 4,356,432 Prior period adjustments - - 5,319 FUND BALANCES, END OF YEAR (8,145) $ 401,636 $ 4,753,509 $ 82 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2013 Accumulated Alpine County Hawkin's Peak Markleeville Capital Government Communications Pipeline Vehicle Outlay Center Tower Prop 50 Grant Replacement ASSETS Cash and investments 234,843 $ - $ 196,552 $ - $ 166,701 $ Due from other governments - - - 88,778 - Interest receivable 158 (62) - (63) 116 Due from other funds - 277,602 - - - Total Assets 235,001 $ 277,540 $ 196,552 $ 88,715 $ 166,817 $ LIABILITIES Accounts payable 5,113 $ 29,906 $ 1,691 $ - $ - $ Due to other funds - 265,031 - 91,000 - Total Liabilities 5,113 294,937 1,691 91,000 - DEFERRED INFLOWS OF RESOURCES Unavailable revenues - - - 85,306 - FUND BALANCES Restricted - - - - - Assigned 229,888 - 194,861 - 166,817 Unassigned - (17,397) - (87,591) - Total Fund Balances 229,888 (17,397) 194,861 (87,591) 166,817 Total Liabilities, Deferred Inflows of Resources and Fund Balances 235,001 $ 277,540 $ 196,552 $ 88,715 $ 166,817 $ continued 83 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Capital Projects Funds June 30, 2013 Leviathan County Parks and Peak Road Recreation Communications Improvement Grant Tower Total ASSETS Cash and investments - $ 26 $ 95,325 $ 693,447 $ Due from other governments 55,695 - - 144,473 Interest receivable 8 5 68 230 Due from other funds - - - 277,602 Total Assets 55,703 $ 31 $ 95,393 $ 1,115,752 $ LIABILITIES Accounts payable 4,661 $ - $ 9,408 $ 50,779 $ Due to other funds 53,912 31 - 409,974 Total Liabilities 58,573 31 9,408 460,753 DEFERRED INFLOWS OF RESOURCES Unavailable revenues 55,695 - - 141,001 Fund Balances: Restricted - - 85,985 85,985 Assigned - - - 591,566 Unassigned (58,565) - - (163,553) Total Fund Balances (58,565) - 85,985 513,998 Total Liabilities, Deferred Inflows of Resources and Fund Balances 55,703 $ 31 $ 95,393 $ 1,115,752 $ 84 ---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, 2013 Accumulated Alpine County Hawkin's Peak Markleeville Capital Government Communications Pipeline Vehicle Outlay Center Tower Prop 50 Grant Replacement REVENUES Use of money and property 841 $ (54) $ - $ (1,137) $ 640 $ Intergovernmental - - - 415,612 - Total Revenues 841 (54) - 414,475 640 EXPENDITURES Capital outlay 169,941 721,333 11,955 - 677,715 Total Expenditures 169,941 721,333 11,955 - 677,715 Excess (Deficiency) of Revenues Over (Under) Expenditures (169,100) (721,387) (11,955) 414,475 (677,075) OTHER FINANCING SOURCES (USES) Transfers in 169,942 703,990 - - 273,621 Total Other Financing Sources (Uses) 169,942 703,990 - - 273,621 NET CHANGES IN FUND BALANCES 842 (17,397) (11,955) 414,475 (403,454) Fund Balances, Beginning of Year 229,046 - 206,816 (502,066) 570,271 FUND BALANCES, END OF YEAR 229,888 $ (17,397) $ 194,861 $ (87,591) $ 166,817 $ continued 85 ---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, 2013 Leviathan County Parks and Peak Road Recreation Communications Improvement Grant Tower Total REVENUES Use of money and property - $ - $ 516 $ 806 $ Intergovernmental 91,578 - - 507,190 Total Revenues 91,578 - 516 507,996 EXPENDITURES Capital outlay 86,955 - 181,812 1,849,711 Total Expenditures 86,955 - 181,812 1,849,711 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,623 - (181,296) (1,341,715) OTHER FINANCING SOURCES (USES) Transfers in - - - 1,147,553 Total Other Financing Sources (Uses) - - - 1,147,553 NET CHANGES IN FUND BALANCES 4,623 - (181,296) (194,162) Fund Balances, Beginning of Year (63,188) - 267,281 708,160 FUND BALANCES, END OF YEAR (58,565) $ - $ 85,985 $ 513,998 $ 86