Document Alpinecountyca_doc_d4ae3ece6d

COUNTY OF ALPINE ANNUAL FINANCIAL STATEMENTS JUNE 30, 2012 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Independent Auditor’s Report 1-2 Management’s Discussion and Analysis (Required Supplementary Information) 3-11 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets 12 Statement of Activities 13 Fund Financial Statements: Governmental Funds: Balance Sheet 14 Reconciliation of the Balance Sheet to the Statement of Net Assets 15 Statement of Revenues, Expenditures and Changes in Fund Balances 16 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 17 Proprietary Funds Statement of Net Assets 18 Statement of Revenues, Expenses and Changes in Fund Net Assets 19 Statement of Cash Flows 20 Fiduciary Funds: Statement of Fiduciary Net Assets 21 Statement of Changes in Fiduciary Net Assets 22 Notes to the Basic Financial Statements 23-48 Required Supplementary Information: Schedule of Funding Progress – County Postemployment Healthcare Plan 49 Budgetary Comparison Schedules: General Fund 50-52 Road Fund 53 Mental Health Services Act 54 STPUD Mitigation Fund 55 Realignment Fund 56 Note to Required Supplementary Information 57 ---PAGE BREAK--- COUNTY OF ALPINE Table of Contents Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Balance Sheet 58 Statement of Revenues, Expenditures and Changes in Fund Balances 59 Nonmajor Special Revenue Funds: Combining Balance Sheet 60-69 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 70-79 Nonmajor Capital Projects Funds: Combining Balance Sheet 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 81 ---PAGE BREAK--- 1 INDEPENDENT AUDITOR’S REPORT Board of Supervisors and Grand Jury County of Alpine Markleeville, California 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, 2012, which collectively comprise the County’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the County’s management. Our responsibility is to express opinions on these financial statements based on our audit. 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 of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to previously 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, as of June 30, 2012, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated March 21, 2013, 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 and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of funding progress, and the budgetary comparison information on pages 3 through 11, page 49, and pages 50 through 57 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the ---PAGE BREAK--- 2 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County’s financial statements. The combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the 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 and individual nonmajor fund financial statements and are fairly stated in all material respects in relation to the financial statements as a whole. Clovis, California March 21, 2013 ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis Fiscal Year Ended June 30, 2012 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, 2012. 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 $37,418,291 (net assets). Of this amount, $9,918,160 in unrestricted net assets is available to meet ongoing obligations to citizens and creditors. $15,287,817 in restricted net assets must be used only for specific purposes and $12,212,314 is invested in capital assets, net of related debt.  As of June 30, 2012, the County’s governmental funds reported combined fund balances of $25,253,014, an increase of $3,198,353 in comparison with the prior year. Of this increase. $2,821,972 is the result of adjustments to revenues and/or expenditures reported in prior years and $376,381 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 90.2% of ending fund balance. Of this amount, $14,669,445 is restricted by law or externally imposed requirements, $3,787,762 is committed for specific purposes and $3,800,347 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 $1,193,004 or 21.6% of total General Fund expenditures.  The County’s long-term liabilities increased by $58,099 or 5.4% during the current fiscal year, primarily due to the accumulation of compensated absences by employees. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the County’s basic financial statements. The County’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other required supplementary information in addition to the basic financial statements themselves. 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. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis Fiscal Year Ended June 30, 2012 4 The Statement of Net Assets presents information on all of the County’s assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The Statement of Activities presents information showing how the County’s net assets changed during the most recent fiscal year. All changes in net assets 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. 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. 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, ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis Fiscal Year Ended June 30, 2012 5 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 and capital projects). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund, the Road Fund, the Mental Health Services Act Fund, the STPUD Mitigation Fund, the Realignment Fund, the Hawkin’s Peak Communications Project and the Markleeville Pipeline Prop. 50 Grant Fund 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 funds, permanent fund 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. 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. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis Fiscal Year Ended June 30, 2012 6 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 Assets As of June 30, (in thousands) 2012 2011 2012 2011 2012 2011 Assets: Current and other assets 27,823 $ 26,984 $ 51 $ 46 $ 27,874 $ 27,030 $ Capital assets, net 12,528 9,784 34 42 12,562 9,826 Total assets 40,351 36,768 85 88 40,436 36,856 Liabilities: Current and other liabilities 1,003 3,682 91 86 1,094 3,768 Long-term liabilities 1,924 1,729 - - 1,924 1,729 Total liabilities 2,927 5,411 91 86 3,018 5,497 Net assets: Invested in capital assets, net of debt 12,178 9,384 34 42 12,212 9,426 Restricted net assets 15,288 14,889 - - 15,288 14,889 Unrestricted net assets 9,958 7,084 (40) (40) 9,918 7,044 Total net assets 37,424 $ 31,357 $ $ 2 $ 37,418 $ 31,359 $ Governmental Activities Business-Type Activities Total As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the County, assets exceeded liabilities by $37,418,291 at the close of the most recent fiscal year, increasing $6,059,324, or 19.32% during the year. By far the largest portion of the County’s net assets is restricted net assets representing resources that are subject to external restrictions on how they may be used. During the fiscal year, restricted net assets increased $398,691, or 2.68%. Another portion of the County’s net assets is its 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. Unrestricted net assets in the amount of $9,918,160 or 26.51% of total net assets may be used to meet the County’s ongoing obligations to citizens and creditors. Unrestricted net assets increased $2,874,474 or 40.81% because certain resources internally committed by resolution of the County’s Board of Supervisors qualified as restricted net assets in the fund statements but did not meet the definition of restricted net assets established by GASB Statement No. 34 for the government-wide statement. As a result, net assets of $3,435,204 incorrectly restricted at June 30, 2011 were correctly classified as unrestricted at June 30, 2012. ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis Fiscal Year Ended June 30, 2012 7 At the end of the current fiscal year, the County reported positive balances in all three categories of net assets, both for the County as a whole, as well as for its separate governmental activities. The County’s total net assets increased $6,059,324 during the fiscal year ended June 30, 2012. When compared to the prior year, revenues increased $76,888, 0.4%, and expenses increased $1,633,375, or 12.6%. The following table shows the changes in net assets for governmental and business-type activities. Changes in Net Assets Year ended June 30, (in thousands) Governmental Business-Type Activities Activities Total 2012 2011 2012 2011 2012 2011 Revenues: Program revenues: Charges for services 1,955 $ 883 $ 3 $ 3 $ 1,958 $ 886 $ Operating grants and contributions 9,870 8,257 19 63 9,889 8,320 Capital grants and contributions 82 1,461 - - 82 1,461 General revenues: Property taxes 4,769 5,394 - - 4,769 5,394 Sales taxes 253 340 - - 253 340 Other taxes 465 549 - - 465 549 Unrestricted investment earnings 136 765 - - 136 765 Non-program grant revenues 240 - - - 240 - Total revenues 17,770 17,649 22 66 17,792 17,715 Expenses: General government 3,097 3,950 - - 3,097 3,950 Public protection 4,475 4,136 - - 4,475 4,136 Public ways and facilities 2,723 1,655 - - 2,723 1,655 Health and sanitation 2,085 1,582 - - 2,085 1,582 Public assistance 1,647 1,103 - - 1,647 1,103 Education 294 271 - - 294 271 Recreation 131 122 - - 131 122 Interest on long-term debt 28 28 - - 28 28 Alpine County Transit - - 75 74 75 74 Total expenses 14,480 12,847 75 74 14,555 12,921 Excess (deficiency) before transfers 3,290 4,802 (53) 3,237 4,794 Transfers (45) - 45 - - - Change in net assets 3,245 4,802 3,237 4,794 Net assets at beginning of year 31,358 26,555 2 10 31,360 26,565 Restatements 2,821 - - - 2,821 - Net assets at end of the year 37,424 $ 31,357 $ $ 2 $ 37,418 $ 31,359 $ ---PAGE BREAK--- COUNTY Managem Fiscal Yea Expenses Year ende (in thousa Revenues Year ende 5 10 15 20 25 30 35 40 45 50 C OF ALPINE ment’s Discuss ar Ended June s and Progra ed June 30, 2 ands) s by Source – ed June 30, 2 0 500 000 500 000 500 000 500 000 500 000 Operatin and cont 55.5 Capital grants a contribution 0.46% sion and Analy e 30, 2012 am Revenues 012 – Governme 012 Proper 26. ng grants tributions 54% and ns ysis s – Governme ntal Activitie rty taxes 84% Re 8 ental Activiti es O evenues es Other taxes 4.04% Interest earn 0.77% Gr res specif Cha se 11 Revenues Expenses nings rants not stricted to fic programs 1.35% arges for ervices 1.00% ---PAGE BREAK--- COUNTY OF ALPINE Management’s Discussion and Analysis Fiscal Year Ended June 30, 2012 9 The County’s revenues increased by $76,888, or 0.4%. The most significant changes in revenues are noted below: Increase (Decrease) Property taxes (353,000) $ Leases and rents (319,000) Senate bill no. 678 (probation) 100,000 Mental Health Services Act (1,720,000) Realignment revenues 827,000 Public safety grants 2,042,000 Highway construction grant (1,049,000) The County’s expenses increased by $1,633,375, or 12.6%. Approximately half of this increase represents the completion of the Markleeville Pipeline project that was expensed in the current year. Since future maintenance of the pipeline is not the County’s responsibility, the cost of the pipeline was expensed in the current year. The remainder of the increase is from a higher volume of general maintenance projects this year most of which did not meet the definition or threshold for capitalization in the government-wide financial statements. 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, 2012, the County’s governmental funds reported combined ending fund balances of $25,253,014, an increase of $3,198,353 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, $2,480,886, consists of amounts that are not spendable in form or are legally or contractually required to be maintained intact and primarily consists of inventories, advances receivable and deposits. It also includes $400,000 representing the corpus portion of the County’s one permanent fund.  Restricted fund balance, $14,669,445, 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.  Committed fund balance, $3,787,762, 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.  Assigned fund balance, $3,800,347, 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 Fiscal Year Ended June 30, 2012 10 the General Fund. Assigned fund balances primarily consists of amounts set aside for fiscal emergencies and the amount anticipated for funding next fiscal year’s shortfall in revenues.  Unassigned fund balance, $514,574, represents the residual classification for the General Fund netted against deficit balances in other governmental funds. General Fund Approximately 75.9%, or $4,541,937, 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 $3,606,853, or 75.1% over last year’s balance. The financial statements for the prior year did not report any assignments and the decrease represents assignments created or continued by actions taken by the County’s Board including among other items a general reserve of $1 million and use of $1,190,046 to balance next year’s anticipated shortfall in revenues against appropriations. 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 108.4% of total General Fund expenditures. Other Governmental Funds As compared with the prior year, the total fund balances of the remaining governmental funds increased 20.9%, or $3,326,688. The following significant changes occurred:  Prior period adjustment of $2,538,734 primarily to comply with Government Accounting Standards Board Statement No. 33 by including in fund balance those unspent revenues that were previously reported as unearned.  In the aggregate, expenditures were less than revenues by $787,954. GOVERNMENTAL FUND BUDGETARY HIGHLIGHTS The County’s final budget appropriations for expenditures for the General Fund differ from the original budget by $82,563, or less than No significant changes between final and original appropriations occurred. Actual expenditures were less than budgeted appropriations by $1,024,278, or 11.7% 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 Fiscal Year Ended June 30, 2012 11  Cost savings of $77,000 for salaries and benefits were realized because some positions were vacant for part of the year.  Retire health insurance premiums were $30,000 less than anticipated.  The need for additional radios and other small equipment and the repair of this equipment was less than anticipated resulting in cost savings of $92,000.  Social service assistance payments required of the General Fund was $40,000 less that estimated.  Not all of the employment development activities occurred as plan, resulting in cost savings of $27,000.  Some activities and projects outsourced to third parties experienced delays to the next fiscal year aggregating to cost savings of $233,000 in the current year.  Capital asset replacements of $300,000 were avoided and plans to purchase these assets were cancelled or abandoned.  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, 2012 totaled $12.5 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 $2,736,159, or 27.8%. Major capital asset additions during the current fiscal year included $3,357,452 for partial construction of two communications towers which were still in progress at the end of the fiscal year and $366,628 to purchase snow plows. 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 $1,132,096. Total long-term liabilities included the following one capital lease, compensated absences and the liability for future claims costs. Additional information on the County’s long-term liabilities can be found in Note 5 to the basic financial statements. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the County’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Alpine County 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 Assets June 30, 2012 Governmental Business-Type Activities Activities Totals ASSETS Cash and investments 22,698,631 $ 53,429 $ 22,752,060 $ Accounts receivable 22,771 18 22,789 Taxes receivable 1,146,011 - 1,146,011 Due from other governments 1,963,975 - 1,963,975 Interest receivable 28,458 69 28,527 Deposits 1,844,293 - 1,844,293 Inventories 116,275 - 116,275 Internal balances 2,888 (2,888) - Capital assets: Nondepreciable 7,148,996 - 7,148,996 Depreciable, net 5,379,275 34,043 5,413,318 Total Assets 40,351,573 84,671 40,436,244 LIABILITIES Accounts payable 772,642 59 772,701 Accrued salaries and benefits 227,753 985 228,738 Accrued interest payable 2,822 - 2,822 Unearned revenue - 89,697 89,697 Long-term liabilities: Due within one year: Compensated absences 215,070 - 215,070 Capital leases 50,000 - 50,000 Estimated liability for claims costs 351,956 - 351,956 Due after one year: Compensated absences 215,070 - 215,070 Capital leases 300,000 - 300,000 Other post employment benefits 791,899 - 791,899 Total Liabilities 2,927,212 90,741 3,017,953 NET ASSETS Investment in capital assets, net of related debt 12,178,271 34,043 12,212,314 Restricted 15,287,817 - 15,287,817 Unrestricted 9,958,273 (40,113) 9,918,160 Total Net Assets 37,424,361 $ (6,070) $ 37,418,291 $ See accompanying notes to the basic financial statements. 12 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Activities For the Year Ended June 30, 2012 Program Revenues Fees, Fines and Operating Capital Charges for Grants and Grants and Expenses Services Contributions Contributions FUNCTION / PROGRAM ACTIVITIES Primary Government Governmental Activities: General government 3,097,136 $ 870,844 $ 17,213 $ - $ Public protection 4,475,379 840,909 3,349,774 - Public ways and facilities 2,722,653 74,578 2,076,679 82,327 Health and sanitation 2,084,886 149,790 2,106,263 - Public assistance 1,647,204 8,296 2,319,787 - Education 293,607 10,304 - - Recreation and culture 131,458 - - - Interest on long term debt 27,816 - - - Total Governmental Activities 14,480,139 1,954,721 9,869,716 82,327 Business-Type Activities Alpine Transit Service 74,750 2,999 18,927 - Total Alpine County 14,554,889 $ 1,957,720 $ 9,888,643 $ 82,327 $ 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 Transfers Total General Revenues and Transfers CHANGE IN NET ASSETS Net assets, beginning of year Prior period adjustments NET ASSETS, END OF YEAR See the accompanying notes to the basic financial statements. 13 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Assets Business- Governmental Type Activities Activities Total (2,209,079) $ - $ (2,209,079) $ (284,696) - (284,696) (489,069) - (489,069) 171,167 - 171,167 680,879 - 680,879 (283,303) - (283,303) (131,458) - (131,458) (27,816) - (27,816) (2,573,375) - (2,573,375) - (52,824) (52,824) (2,573,375) (52,824) (2,626,199) 4,768,768 - 4,768,768 253,109 - 253,109 430,702 - 430,702 34,057 - 34,057 240,199 - 240,199 136,457 259 136,716 (45,000) 45,000 - 5,818,292 45,259 5,863,551 3,244,917 (7,565) 3,237,352 31,357,472 1,495 31,358,967 2,821,972 - 2,821,972 37,424,361 $ (6,070) $ 37,418,291 $ ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ---PAGE BREAK--- COUNTY OF ALPINE Balance Sheet Governmental Funds June 30, 2012 Mental General Road Health STPUD Fund Fund Services Act Mitigation ASSETS Cash and investments 4,083,109 $ 984,628 $ 5,145,104 $ 3,577,119 $ Accounts receivable 18,042 1,772 - - Taxes receivable 1,091,930 - - - Due from other governments 189,893 14,413 - - Interest receivable 9,020 1,868 5,334 3,827 Deposits 1,444,293 - - - Inventories - 116,275 - - Due from other funds 163,615 723,951 - - Advances to other funds - - - 70,318 Total Assets 6,999,902 $ 1,842,907 $ 5,150,438 $ 3,651,264 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 228,379 $ 15,744 $ 31,841 $ - $ Accrued salaries and benefits 121,404 17,201 9,252 - Deferred revenue 646,458 14,413 - - Due to other funds 17,431 42,728 3,940 - Advances from other funds - - - - Total Liabilities 1,013,672 90,086 45,033 - Fund Balances: Nonspendable 1,444,293 116,275 - 70,318 Restricted - 1,636,546 5,105,405 - Committed - - - 3,580,946 Assigned 3,348,933 - - - Unassigned 1,193,004 - - - Total Fund Balances 5,986,230 1,752,821 5,105,405 3,651,264 Total Liabilities and Fund Balances 6,999,902 $ 1,842,907 $ 5,150,438 $ 3,651,264 $ See the accompany notes to the basic financial statements. 14 ---PAGE BREAK--- Hawkin's Peak Markleeville Realignment Communications Pipeline Other Fund Tower Prop 50 Grant Governmental Total 3,415,342 $ 198,920 $ - $ 5,294,409 $ 22,698,631 $ - - - 2,957 22,771 - - - 54,081 1,146,011 130,252 - 701,304 928,113 1,963,975 3,550 - (762) 5,621 28,458 - - - 400,000 1,844,293 - - - - 116,275 38,015 10,110 7,055 851,912 1,794,658 50,000 - - - 120,318 3,637,159 $ 209,030 $ 707,597 $ 7,537,093 $ 29,735,390 $ - $ 2,214 $ - $ 494,464 $ 772,642 $ - - - 79,896 227,753 - - 501,304 407,718 1,569,893 396,554 - 708,359 622,758 1,791,770 - - - 120,318 120,318 396,554 2,214 1,209,663 1,725,154 4,482,376 50,000 - - 800,000 2,480,886 3,190,605 - - 4,736,889 14,669,445 - 206,816 - - 3,787,762 - - - 451,414 3,800,347 - - (502,066) (176,364) 514,574 3,240,605 206,816 (502,066) 5,811,939 25,253,014 3,637,159 $ 209,030 $ 707,597 $ 7,537,093 $ 29,735,390 $ ---PAGE BREAK--- COUNTY OF ALPINE Governmental Funds Reconciliation of the Balance Sheet to the Statement of Net Assets June 30, 2012 Fund balance - total governmental funds 25,253,014 $ Amounts reported for governmental activities in the statement of net assets 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 54,887,214 $ Less: accumulated depreciation (42,358,943) 12,528,271 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 1,569,893 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 (351,956) Capital leases (350,000) Compensated absences (430,140) Other post employment benefits (791,899) Accrued interest payable (2,822) Net assets of governmental activities 37,424,361 $ See the accompanying notes to the basic financial statements. 15 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2012 Mental General Road Health STPUD Fund Fund Services Act Mitigation REVENUES Taxes 5,542,421 $ - $ - $ - $ Licenses and permits 38,378 675 - - Fines, forfeitures and penalties 224,116 638 - - Use of money and property 57,357 9,075 27,288 24,048 Intergovernmental 502,957 1,061,364 914,400 - Charges for services 325,683 425,986 - 166,109 Other revenues 30,812 4,064 1,452 - Total Revenues 6,721,724 1,501,802 943,140 190,157 EXPENDITURES Current: General government 2,044,799 - - - Public protection 2,508,211 - - - Public ways and facilities - 1,463,540 - - Health and sanitation 113,428 - 373,566 - Public assistance 544,437 - - - Education 279,919 - - - Recreation and cultural services 30,709 - - - Capital outlay - 495,079 - - Debt service: Principal - - - 50,000 Interest - - - 24,994 Total Expenditures 5,521,503 1,958,619 373,566 74,994 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,200,221 (456,817) 569,574 115,163 OTHER FINANCING SOURCES (USES) Transfers in 65,393 673,684 300 - Transfers out (1,677,187) - - - Sale of assets - - - - Total Other Financing Sources and Uses (1,611,794) 673,684 300 - NET CHANGE IN FUND BALANCES (411,573) 216,867 569,874 115,163 Fund Balances, Beginning of Year 6,114,565 1,535,954 2,341,430 3,536,101 Prior period adjustments 283,238 - 2,194,101 - FUND BALANCES, END OF YEAR 5,986,230 $ 1,752,821 $ 5,105,405 $ 3,651,264 $ See the accompanying notes to the basic financial statements. 16 ---PAGE BREAK--- Hawkin's Peak Markleeville Realignment Communications Pipeline Other Fund Tower Prop 50 Grant Governmental Total - $ - $ - $ 314,502 $ 5,856,923 $ - - - 56,442 95,495 - - - 1,794 226,548 17,829 - (2,538) 241,390 374,449 1,418,628 - 268,703 5,706,627 9,872,679 - - - 515,779 1,433,557 - - - 12,316 48,644 1,436,457 - 266,165 6,848,850 17,908,295 - - - 79,286 2,124,085 - - - 1,816,364 4,324,575 - - - 367,639 1,831,179 - - - 1,757,511 2,244,505 - - - 1,300,025 1,844,462 - - - - 279,919 - - - - 30,709 - 2,704,830 680,596 856,360 4,736,865 - - - - 50,000 - - - - 24,994 - 2,704,830 680,596 6,177,185 17,491,293 1,436,457 (2,704,830) (414,431) 671,665 417,002 - 2,159,654 2,085 2,622,542 5,523,658 (1,455,074) - - (2,436,397) (5,568,658) - - - 4,379 4,379 (1,455,074) 2,159,654 2,085 190,524 (40,621) (18,617) (545,176) (412,346) 862,189 376,381 3,258,438 751,992 (89,720) 4,605,901 22,054,661 784 - - 343,849 2,821,972 3,240,605 $ 206,816 $ (502,066) $ 5,811,939 $ 25,253,014 $ ---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, 2012 Net change to fund balance - total governmental funds 376,381 $ 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 4,455,011 Less: current year depreciation (789,028) 3,665,983 Governmental funds report the disposal of assets to the extent proceeds are received from the sale. In the statement of activities, a gain or loss results when the cost of the capital asset less any accumulated depreciation is more or less than the proceeds received. A loss also results when any construction in progress project consisting of past and current accumulated expenditures does not result in capitalization. This amount represents projects with construction in progress which were abandoned or did not result in capitalization of an asset. (922,259) Revenues not available to pay for current-period expenditures are deferred in the governmental funds 322,246 Repayment of dept principal is an expenditure in the governmetnal funds, but the repayment reduces long-term liabilities in the statement of net assets Principal repayments: Capital leases 50,000 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 (2,822) Change in compensated absences (58,490) Change in estimated liability for claims costs (49,609) Change in other post employment benefits (136,513) (247,434) Change in net assets of governmental activities 3,244,917 $ See the accompanying notes to the basic financial statements. 17 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Fund Net Assets Proprietary Funds - Alpine Transit Service June 30, 2012 ASSETS Current Assets: Cash and investments 53,429 $ Accounts receivable 18 Interest receivable 69 Due from other funds 340 Total Current Assets 53,856 Non-Current Assets Equipment, net of accumulated depreciation 34,043 Total Assets 87,899 LIABILITIES Current Liabilities: Accounts payable 59 Accrued salaries and benefits 985 Deferred revenue 89,697 Due to other funds 3,228 Total Current Liabilities 93,969 NET ASSETS Invested in capital assets, net of related debt 34,043 Unrestricted (40,113) Total Net Assets (Deficit) (6,070) $ See the accompanying notes to the basic financial statements. 18 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2012 OPERATING REVENUES Fare revenues 2,999 $ OPERATING EXPENSES Salaries and benefits 20,304 Adminstrative 28,478 Fuel and vehicle maintenance 7,523 Insurance 10,880 Depreciation 7,565 Total Operating Expenses 74,750 OPERATING INCOME (LOSS) (71,751) NON-OPERATING REVENUES (EXPENSES) Federal transit administration grants 25,000 Local Transportation Fund carryover adjustment (6,073) Interest 259 Total Non-Operating Revenues (Expenses) 19,186 Change in net assets before transfers (52,565) Transfers in 45,000 CHANGE IN NET ASSETS (7,565) Net Assets, Beginning of Year 1,495 NET ASSETS, END OF YEAR (6,070) $ See the accompanying notes to the basic financial statements. 19 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Cash Flows Proprietary Funds - Alpine Transit Service For the Year Ended June 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts from customers and users 2,641 $ Cash paid to employees (19,319) Cash paid to suppliers for goods and services (46,422) Net Cash Used by Operating Activities (63,100) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 299 Net Cash Provided by Investment Activities 299 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Operating grants and other support 70,000 Net Cash Provided by Noncapital Financing Activities 70,000 NET INCREASE IN CASH AND CASH EQUIVALENTS 7,199 Cash and Cash Equivalances, Beginning of Year 46,230 CASH AND CASH EQUIVALENTS, END OF YEAR 53,429 $ RECONCILIATION OF OPERATING LOSS TO NET CASH USED BY OPERATING ACTIVITIES Operating loss (71,751) Adjustment to reconcile operating loss to net cash used by operating activities: Depreciation 7,565 Change in assets and liabilities: Accounts receivable (18) Due from other funds (340) Accounts payable (2,769) Accrued salaries and benefits 985 Due to other funds 3,228 NET CASH USED BY OPERATING ACTIVITIES (63,100) $ See the accompanying notes to the basic financial statements. 20 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Fiduciary Net Assets June 30, 2012 Investment Agency Trust Funds ASSETS Cash and investments 6,040,565 $ 1,281,892 $ Interest receivable - 21,889 Total Assets 6,040,565 1,303,781 LIABILITIES Apportionments payable - 51,828 Agency obligations - 1,251,953 Total Liabilities - 1,303,781 NET ASSETS Net assets held in trust for investment pool participants 6,040,565 - Total Net Assets 6,040,565 $ - $ See the accompanying notes to the basic financial statements. 21 ---PAGE BREAK--- COUNTY OF ALPINE Statement of Changes in Fiduciary Net Assets For the Year Ended June 30, 2012 Investment Trust ADDITIONS Contributions to investment pool 4,405,028 $ Investment earnings 41,232 Total Additions 4,446,260 DEDUCTIONS Distributions from pooled investment accounts 5,037,957 Total Deductions 5,037,957 CHANGE IN NET ASSETS (591,697) Net Assets, Beginning of Year 6,632,262 NET ASSETS, END OF YEAR 6,040,565 $ See the accompanying notes to the basic financial statements. 22 ---PAGE BREAK--- 23 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 disclosure 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 Financial Statements Fiscal Year Ended June 30, 2012 24 Note 1: Summary of Significant Accounting Policies A. Description of the Reporting Entity The County operates under an Administrator-Board of Supervisors form of government and provides the following services: public protection, public ways and facilities, health and sanitation, public assistance, education, culture and recreation and general services. The accounting methods and procedures adopted by the County conform to generally accepted accounting principles as applied to governmental entities. 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. 14. 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. There are no component units of the County which meet the criteria for discrete presentation. B. Basis of Presentation Government-Wide Financial Statements The statement of net assets 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 25 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 are charges for the goods or services provided by the fund as part of its principal activity. 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 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.  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 Hawkin’s Peak Communications Tower Fund was established to account for financial resources to be used for the acquisition and construction of the Hawkin’s Peak Radio Communications Facility. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 26  The Markleeville Pipeline Prop. 50 Grant Fund was established to account for financial resources for the acquisition and construction of the Markleeville Water Line Replacement Project. 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 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. For its governmental activities, business-type activities and proprietary funds, the County applies all applicable GASB pronouncements as well as any applicable pronouncements of the Financial Accounting ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 27 Standards Board, the Accounting Principles Board or any Accounting Research Bulletins issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. Under GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the County has elected to apply private-sector guidance issued after November 30, 1989 to its business-type activities and enterprise fund unless those pronouncements conflict with or contradict existing GASB pronouncements. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards, which, along with subsequent GASB pronouncements (Statements and Interpretations), are accounting principles generally accepted in the United States of America (GAAP). 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 assets 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, 2012, to support the value of pool shares. F. Inventory ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 28 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, 2012, are recorded as prepaid expenses/items. Payments made in advance of the receipt of goods or property is recorded as deposits. In the fund financial statements, prepaid 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 separation of employment up to a maximum of 30 days. Sick leave is accrued at the rate of 12 days per ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 29 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 assets in the period that the benefits accrue to employees. J. 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’s 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. K. Interfund Transactions Interfund transactions are reflected as loans, services provided, reimbursements or transfers. Loans are 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 30 L. Net Assets The government-wide and proprietary fund financial statements utilize a net assets presentation. Net assets are categorized as follows:  Invested in Capital Assets, Net of Related Debt – This category groups all capital assets, including infrastructure, into one component of net assets. 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 Assets – 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 Assets – This category represents net assets of the County, not restricted for any project or other purpose. M. Fund Balance In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the County is bound to honor constraints on how specific amounts can be spent.  Nonspendable fund balance – Amounts that cannot be spent because they are either not in spendable form or are legally or contractually required to remain intact.  Restricted fund balance – Amounts with constraints placed on their use that are externally imposed by creditors, grantors, contributors, or laws and regulations of other governments. Constraints may also be imposed by law through constitutional provisions or enabling legislation.  Committed fund balance – Amounts that can only be used for specific purposes determined by formal action of the County’s highest level of decision-making authority (the Board of Supervisors) and that remain binding unless removed in the same manner. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period.  Assigned fund balance – Amounts that are constrained by the County’s intent to use resources for specific purposes. The intent can be established at either the highest level of decision making or by a body or an official designated for that purpose. This is also the classification for residual fund balance in all governmental funds other than the General Fund.  Unassigned fund balance – The residual classification for the County’s General Fund that includes amounts not contained in the other classifications. In other funds, the unassigned classification is used only if the expenditures incurred for specific purposes exceed the amounts restricted, committed or assigned to those purposes deficit fund balance). ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 31 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. N. 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. O. 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 November 2010, the GASB issued Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The objective of this statement is to improve financial reporting by addressing issues related to service concession arrangements (SCAs), which are a type of public-private or public- public partnerships. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2013. In November 2010, the GASB issued Statement No. 61, The Financial Rerporting Entity: Omnibus – An Amendment of GASB Statements No. 14 and No. 34. The objective of this statement is to improve financial reporting for a governmental financial reporting entity. This statement modifies certain requirements for inclusion of component units in the financial reporting entity. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2013. In December 2010, the GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2013. In June 2011, the GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. GASB Statement No. 63 provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources, introduced and defined in GASB Concepts Statement No. 4. This statement amends the net assets reporting requirements in Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, and other pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. The requirements of this statement are effective for the County’s fiscal year ending June 30, 2013. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 32 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. 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. Note 2: Cash and Investments At June 30, 2012, total County cash and investments were as follows: Cash: Cash on hand 439 $ Imprest accounts 285 Deposits 224,085 Total Cash 224,809 Investments: In Treasurer's Pool 29,849,708 Total Cash and Investments 30,074,517 $ Total cash and investments at June 30, 2012 were presented on the County’s financial statements as follows: Primary government 22,752,060 $ Investment trust fund 6,040,565 Agency funds 1,281,892 Total Cash and Investments 30,074,517 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 33 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 At June 30, 2012, 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 - 4.250% 9/30/12 - 8/31/16 1,580,000 $ 1,600,982 $ 690 Federal Agency Obligations 0.500% - 4.875% 8/22/12- 8/25/16 4,625,000 4,735,749 704 Money Market Mutual Funds Variable On Demand 12,220 12,220 0 LAIF Variable On Demand 23,500,757 23,500,757 0 29,717,977 $ 29,849,708 $ 144 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 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 34 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, 2012, the County’s portfolio WAM was 144 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. 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, 2012. Credit Rating % Investments In Pool Moody's/S&P Holdings Federal Agency Obligations Aaa/AA+ 15.87% U.S. Treasuries Aaa/AA+ 5.36% Money Market Mutual Funds Aaa/AAA 0.04% LAIF Not Rated 78.73% 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, 2012, the County’s investment position in LAIF was $23,500,757, ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 35 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 $60.5 billion. Of that amount, 3.47% was invested in structured notes and asset-backed securities with the remaining 96.53% invested in other non-derivative financial products. The average maturity of PMIA investments was 270 days as of June 30, 2012. 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, 2012, involuntary participants of the County’s investment pool totaled $5,938,977. 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 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 assets and changes in net assets for the County’s investment pool as of June 30, 2012: Statement of Net Assets Net assets held for pool participants 30,074,232 $ Equity of internal pool participants 24,033,667 $ Equity of external pool participants 6,040,565 Total Net Assets 30,074,232 $ Statement of Changes in Net Assets Investment earnings 175,129 $ Investment expenses (26,899) Net distribution to pool participants (1,019,664) Decrease in Net Assets (871,434) Net Assets at July 1, 2011 30,945,666 Net Assets at June 30, 2012 30,074,232 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 36 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. The composition of interfund balances classified as due to / from other funds as of June 30, 2012 is as follows: Receivable Fund Payable Fund Amount General Fund Road Fund 17,758 $ Mental Health Services Act 734 Realignment Fund 11,123 Other Governmental Funds 132,214 Alpine Transit Service 1,786 163,615 Road Fund General Fund 12,781 Mental Health Services Act 339 Markleeville Pipeline Prop. 50 Grant 708,359 Other Governmental Funds 1,030 Alpine Transit Service 1,442 723,951 Realignment Fund Other Governmental Funds 38,015 Hawkin's Peak Comm. Tower Other Governmental Funds 10,110 Markleeville Pipeline Prop. 50 Grant Road Fund 4,970 Other Governmental Funds 2,085 7,055 Other Governmental Funds General Fund 4,650 Road Fund 20,000 Mental Health Services Act 2,851 Realignment Fund 385,431 Other Governmental Funds 438,980 851,912 Alpine Transit Service Mental Health Services Act 16 Other Governmental Funds 324 340 1,794,998 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 37 The composition of interfund balances classified as advances to and from other funds as of June 30, 2012 is as follows: Receivable Fund Payable Fund Amount Purpose STPUD Mitigation Other Governmental Funds 70,318 $ Capital asset funding Realignment Fund Other Governmental Funds 50,000 Operational funding 120,318 $ 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, 2012: Transfers Between Governmental and Business-Type Activities: Transfer From Transfer To Amount Other Governmental Funds Alpine Transit Service 45,000 $ Transfers Between Funds within the Governmental Activities: Transfer From Transfer To Amount General Fund Road Fund 623,684 $ Other Governmental Funds 1,053,503 1,677,187 Realignment Fund General Fund 23,697 Mental Health Services Act 300 Other Governmental Funds 1,431,077 1,455,074 Other Governmental Funds General Fund 41,696 Road Fund 50,000 Hawkin's Peak Comm. Tower 2,159,654 Markleeville Pipeline Prop. 50 Grant 2,085 Other Governmental Funds 137,962 2,391,397 5,523,658 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 38 Note 4: Capital Assets Capital asset activity for the fiscal year ended June 30, 2012 was as follows: Balance Balance July 1, 2011 Additions Retirements Transfers June 30, 2012 Governmental Activities: Total capital assets, not being depreciated Land 1,119,288 $ - $ - $ - $ 1,119,288 $ Construction in progress 3,187,191 3,084,180 (241,663) - 6,029,708 Total capital assets, not being depreciated 4,306,479 3,084,180 (241,663) - 7,148,996 Total capital assets, being depreciated Structures and improvements 5,939,775 80,859 - - 6,020,634 Equipment 6,569,766 609,376 (156,475) - 7,022,667 Infrastructure 34,694,917 - - - 34,694,917 Total capital assets, being depreciated 47,204,458 690,235 (156,475) - 47,738,218 Less accumulated depreciation for: Structures and improvements (2,658,876) (219,593) - - (2,878,469) Equipment (5,468,425) (555,282) 156,475 - (5,867,232) Infrastructure (33,599,089) (14,153) - - (33,613,242) Total accumulated depreciation (41,726,390) (789,028) 156,475 - (42,358,943) Total capital assets, being depreciated, net 5,478,068 (98,793) - - 5,379,275 Governmental activities capital assets, net 9,784,547 $ 2,985,387 $ (241,663) $ - $ 12,528,271 $ 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 (11,347) (7,565) - - (18,912) Total accumulated depreciation (11,347) (7,565) - - (18,912) Business-type capital assets, net 41,608 $ (7,565) $ - $ - $ 34,043 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 39 Depreciation expense was charged to governmental functions as follows: General government 225,516 $ Public protection 228,098 Public ways and facilities 214,047 Health and sanitation 9,102 Public assistance 17,005 Recreation and cultural services 95,260 Total depreciation expense - governmental activities 789,028 $ 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, 2012: Balance Balance Amounts Due July 1, 2011 Additions Retirements June 30, 2012 Within One Year Governmental Activities: Capital leases payable 400,000 $ - $ (50,000) $ 350,000 $ 50,000 $ Compensated absences 371,650 244,315 (185,825) 430,140 215,070 Liability for claims costs 302,347 254,910 (205,301) 351,956 351,956 1,073,997 $ 499,225 $ (441,126) $ 1,132,096 $ 617,026 $ 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 40 Note 6: Capital Lease The County has entered into a certain lease agreement under which the related building will become the property of the County when all terms of the lease agreement are met. The following is a summary of the County’s capital lease agreement as of June 30, 2012: Present Value Stated of Remaining Interest Payments as of Rate June 30, 2012 Social Services Building 6.45% 350,000 $ The cost of the building purchased through the capital lease is as follows: Social Services Building 795,000 $ Less: accumulated depreciation (445,000) Net 350,000 $ As of June 30, 2012, future minimum lease payments under capital leases were as follows: Year Ending June 30: 2013 71,769 $ 2014 68,544 2015 75,158 2016 71,288 2017 67,417 2018 73,386 Total Future Minimum Lease Payments 427,562 Less: Interest (77,562) Present Value of Minimum Lease Payments 350,000 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 41 Note 7: Net Assets / Fund Balances Fund balances of governmental funds at June 30, 2012 are as follows: Mental Hawkin's Peak Markleeville General Road Health STPUD Realignment Comm. Pipeline Other Fund Fund Services Act Mitigation Fund Tower Prop 50 Grant Governmental Total Nonspendable: Permanent funds - $ - $ - $ - $ - $ - $ - $ 400,000 $ 400,000 $ Advances - - - 70,318 50,000 - - - 120,318 Deposits 1,444,293 - - - - - - 400,000 1,844,293 Inventories - 116,275 - - - - - - 116,275 Total Nonspendable 1,444,293 116,275 - 70,318 50,000 - - 800,000 2,480,886 Restricted: Public protection - - - - 185,480 - - 1,949,556 2,135,036 Public ways and facilties - 1,636,546 - - - - - 639,185 2,275,731 Health and sanitation - - 5,105,405 - 2,064,142 - - 995,929 8,165,476 Public assistance - - - - 940,983 - - 393,035 1,334,018 Capital projects - - - - - - - 267,281 267,281 CSA - - - - - - - 326,111 326,111 Other - - - - - - - 165,792 165,792 Total Restricted - 1,636,546 5,105,405 - 3,190,605 - - 4,736,889 14,669,445 Committed: Capital projects - - - 3,580,946 - 206,816 - - 3,787,762 Total Committed - - - 3,580,946 - 206,816 - - 3,787,762 Assigned: General reserve 1,000,000 - - - - - - - 1,000,000 Cash flow 555,969 - - - - - - - 555,969 Critical services 425,000 - - - - - - - 425,000 Capital projects 177,918 - - - - - - 399,317 577,235 Eliminate projected 2012- 13 budgetary deficit 1,190,046 - - - - - - - 1,190,046 Other - - - - - - - 52,097 52,097 Total Assigned 3,348,933 - - - - - - 451,414 3,800,347 Unassigned 1,193,004 - - - - - (502,066) (176,364) 514,574 Total Fund Balances 5,986,230 $ 1,752,821 $ 5,105,405 $ 3,651,264 $ 3,240,605 $ 206,816 $ (502,066) $ 5,811,939 $ 25,253,014 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 42 Net assets from governmental activities as of June 30, 2012, were restricted for the following purposes: Capital projects 267,281 $ Public protection 2,135,036 Public ways and facilities 2,392,006 Health and sanitation 8,215,476 Public assistance 1,334,018 County Service Area #1 326,111 Other: Trust for Public Land 452,097 Administrative Services 165,792 15,287,817 $ Deficit fund balances / net assets as of June 30, 2012, were as follows: Governmental funds: Markleeville Pipeline Prop. 50 Grant 502,066 $ County Road Improvement 63,188 State OES Grants 16,221 Sheriff Anti-drug Grants 31,226 District Attorney Victim Witness Grant 29,320 Alpine County Transportation Commission 36,404 Proprietary Funds Alpine Transit Service 6,070 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 asset balance in the Alpine Transit Service fund results from insufficient revenues in a prior fiscal year. Contributions in the future from the County’s general fund will eliminate the deficit balance. Restatements of Fund Balance / Net Assets 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 assets. Restatements as of the beginning of the fiscal year were made for the following reasons:  Unearned revenues as previously reported in the general fund and special revenue funds restricted neither by purpose or time were eliminated to comply with GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions. These revenues result from expenditure- driven or reimbursement-type grants that do not qualify for revenue deferral. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 43  Correct revenues recognized twice in a previous fiscal year when former trust fund accounts were closed. The impact of the restatements on the fund balances / net assets as previously reported is presented below: Government-Wide Fund Statements Statements Mental Other Governmental General Health Realignment Governmental Activities Fund Services Act Fund Funds Fund balance / net assets, June 30, 2011, as previously reported 31,357,472 $ 6,114,565 $ 2,341,430 $ 3,258,438 $ 4,605,117 $ Restatements and corrections: Eliminate unearned revenues 3,007,653 283,238 2,194,101 172,565 357,749 Correct prior year revenues (185,681) - - (171,781) (13,900) Total restatements and corrections 2,821,972 283,238 2,194,101 784 343,849 Fund balances / net assets, July 1, 2011, as restated 34,179,444 $ 6,397,803 $ 4,535,531 $ 3,259,222 $ 4,948,966 $ Reclassifications of Fund Balance / Net Assets Certain amounts in the prior year statements have been reclassified for comparison purposes to conform to the current year presentation. This resulted in neither an increase nor a decrease to amounts reported as fund balance or net assets for the County as a whole. 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 44 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. The County is required to contribute the actuarial determined remaining amounts necessary to fund the benefits of its members. The County has committed to contribute a portion of the required employee contribution in addition to its own required contributions. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for fiscal 2011/2012 was 15.398 percent for miscellaneous employees and 33.518 percent for safety employees. The contribution requirements of the plan are established by State statute and the employer contribution rate is established and may be amended by PERS. The County is required to contribute the remaining amounts necessary to fund the benefits of its members using the actuarial basis adopted by the PERS Board of Administrators. Annual Pension Cost For fiscal year 2011/2012, the County’s annual pension cost of $463,416 for the miscellaneous plan and $374,113 for the safety plan was equal to the County’s required and actual contributions. The required contribution was determined as part of the June 30, 2009 actuarial valuation for the cost-sharing pool. The tables below present three year trend information. Annual Percentage Net Pension of APC Pension Fiscal Year Ending: Cost (APC) Contributed Obligation Miscellaneous Plan: 6/30/2010 391,967 $ 100% - $ 6/30/2011 390,663 100% - 6/30/2012 463,416 100% - Safety Plan: 6/30/2010 291,816 $ 100% - $ 6/30/2011 304,567 100% - 6/30/2012 374,113 100% - Note 9: Other Post-Retirement 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 Financial Statements Fiscal Year Ended June 30, 2012 45 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 483,500 $ Interest on prior year net OPEB obligation 27,211 Amortization of prior year net OPEB obligation (26,426) Annual OPEB Cost 484,285 Contributions made (347,772) Increase in net OPEB obligation 136,513 Net OPEB obligation, beginning of year 655,386 Net OPEB obligation, end of year 791,899 $ 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 2010 - $ 813,627 $ 295,581 $ 36.33% 518,046 $ 2011 518,046 465,778 328,438 70.51% 655,386 2012 655,386 484,285 347,772 71.81% 791,899 ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 46 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) 7,257,453 $ Actuarial value of plan assets - Unfunded actuarial accrued liability (UAAL) 7,257,453 $ Funded ratio (actuarial value of plan assets / AAL) 0.00% Covered payroll (active plan members) 3,933,278 $ UAAL as a percentage of covered payroll 184.51% 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 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 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. ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 47 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, 2012, the balance of the deposit was $1,444,293. 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. Changes in the balance of claims liability during the fiscal years ended June 30, 2012 and 2011 was as follows: 2012 2011 Unpaid claims, beginning of year 302,347 $ 300,166 $ Current year claims (including incurred but not reported) 254,910 164,237 Claims payments and changes in estimates (205,301) (162,056) Unpaid claims, end of the year 351,956 $ 302,347 $ ---PAGE BREAK--- COUNTY OF ALPINE Notes to the Financial Statements Fiscal Year Ended June 30, 2012 48 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, 2012, the County had ongoing construction commitments that totaled approximately $3.9 million. Note 12: Subsequent Events In accordance with accounting standards generally accepted in the United States, subsequent events have been evaluated through March 21, 2013, the date in which the financial statements have been issued. 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. Total project costs are estimated at $4,999,179 to be completed by March 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 will be secured by the County’s existing administrative and court house buildings. ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION ---PAGE BREAK--- COUNTY OF ALPINE Required Supplementary Information Fiscal Year Ended June 30, 2012 49 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, 2012 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 6,114,565 $ 6,114,565 $ 6,114,565 $ - $ RESOURCES (inflows): Taxes 5,373,159 5,273,159 5,542,421 269,262 Licenses and permits 32,695 32,695 38,378 5,683 Fines, forfeitures and penalties 3,020 3,020 50,615 47,595 Use of money and property 72,700 70,300 52,976 (17,324) Intergovernmental 434,405 434,405 502,957 68,552 Charges for services 704,275 750,207 854,201 103,994 Other revenues 25,000 30,000 30,812 812 Transfers from other funds 80,000 70,000 65,393 (4,607) Amounts Available for Appropriation 12,839,819 12,778,351 13,252,318 473,967 CHARGES TO APPROPRIATIONS (outflows) General government: Board of Supervisors 437,764 389,997 358,450 31,547 Personnel 239,297 240,372 89,729 150,643 Auditor-Controller 285,904 290,472 287,265 3,207 OMB 87 Central Services 392,800 392,800 134,568 258,232 General Central Services 31,200 31,200 27,122 4,078 Information Technology 148,007 133,007 91,725 41,282 Treasurer-Tax Collector 297,835 303,281 293,952 9,329 Assessors 312,726 319,421 294,313 25,108 Elections 20,307 29,079 23,533 5,546 Buildings & Grounds 457,519 449,837 397,604 52,233 Risk Management 89,809 75,883 48,017 27,866 Retiree Benefits 310,789 310,789 280,837 29,952 Legal Counsel 244,206 284,323 275,141 9,182 Perry Walther Building 14,262 14,262 14,499 (237) Total General Government 3,282,425 3,264,723 2,616,755 647,968 Public protection: County Clerk 207,533 218,596 210,465 8,131 Surveyor / Engineer 20,000 10,000 6,852 3,148 Grand Jury 18,493 11,399 8,883 2,516 Vertical Prosecution 22,055 22,116 3,902 18,214 District Attorney 256,188 261,573 246,120 15,453 Public Defender 70,000 70,000 53,480 16,520 Sheriff / Coroner 1,353,981 1,397,050 1,460,690 (63,640) Jail - 36,000 - 36,000 Communications 90,400 130,088 82,935 47,153 50 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund Variance with For the Year Ended June 30, 2012 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Probation 81,972 91,543 92,768 (1,225) Bear Valley Fire Department 43,535 40,780 29,200 11,580 Kirkwood Fire Department / EMS 12,500 12,500 2,077 10,423 East Slope Fire / EMS 248,993 230,792 192,777 38,015 Agricultural Commission 13,730 13,730 13,727 3 Planning Department 112,746 107,115 103,313 3,802 Local Agency Formation 2,179 2,179 1,064 1,115 Total Public Protection 2,554,305 2,655,461 2,508,253 147,208 Health and sanitation: County Emergency Services 98,642 83,254 67,263 15,991 Kirkwood EMS 18,420 18,409 204 18,205 Bear Valley EMS 12,665 12,665 9,740 2,925 Local Health Department 21,864 21,864 21,864 - Solid Waste & Recycling 17,322 17,856 17,357 499 Total Health and Sanitation 168,913 154,048 116,428 37,620 Public assistance: Community Development 450,018 442,623 434,947 7,676 Social Services Assistance 154,350 154,350 109,450 44,900 General Relief 3,750 3,750 40 3,710 Total Public Assistance 608,118 600,723 544,437 56,286 Education: Superintendent of Schools 54,497 54,497 53,864 633 Library 232,211 233,421 226,055 7,366 Total Education 286,708 287,918 279,919 7,999 Recreation and cultural services: Museum 31,155 31,314 30,709 605 Transfers to other funds General Contribution 1,752,246 1,772,246 1,645,654 126,592 Total Charges to Appropriations 8,683,870 8,766,433 7,742,155 1,024,278 Prior period adjustment - - 283,238 283,238 BUDGETARY FUND BALANCE, JUNE 30 4,155,949 $ 4,011,918 $ 5,793,401 $ 1,781,483 $ 51 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule (continued) General Fund For the Year Ended June 30, 2012 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 13,252,318 $ 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 (6,114,565) Revenues from sub-funds combined with the General Fund for financial reporting purposes are not budgeted as available for appropriation for budgetary purposes 181,013 A87 cost reimbursement is a budgetary resource but is not current-year revenue for financial reporting purposes (531,649) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (65,393) Total revenues as reported on the statement of revenues, expenditures, and changes 6,721,724 $ in fund balances - governmental funds Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 7,742,155 $ 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 117,769 The County does not include the deposit held by the claims administrator for budgetary purposes (129,585) 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 (531,649) Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (1,677,187) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds 5,521,503 $ 52 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Road Fund Variance with For the Year Ended June 30, 2012 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 1,535,954 $ 1,535,954 $ 1,535,954 $ - $ RESOURCES (inflows): Licenses and permits 500 500 675 175 Fines, forfeitures and penalties 1,000 1,000 638 (362) Use of money and property 11,350 11,350 9,075 (2,275) Intergovernmental 855,622 855,622 1,061,364 205,742 Charges for services 309,000 309,000 425,986 116,986 Other revenues - - 4,064 4,064 Transfers from other funds 583,684 583,684 673,684 90,000 Amounts Available for Appropriation 3,297,110 3,297,110 3,711,440 414,330 CHARGES TO APPROPRIATIONS (outflows) Public ways and facilities 2,352,985 2,532,985 1,958,619 574,366 Total Charges to Appropriations 2,352,985 2,532,985 1,958,619 574,366 BUDGETARY FUND BALANCE, JUNE 30 944,125 $ 764,125 $ 1,752,821 $ 988,696 $ 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 3,711,440 $ 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 (1,535,954) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (673,684) Total revenues as reported on the statement of revenues, expenditures, and changes 1,501,802 $ in fund balances - governmental funds 53 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Mental Health Services Act Variance with For the Year Ended June 30, 2012 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 4,535,531 $ 4,535,531 $ 2,341,430 $ (2,194,101) $ RESOURCES (inflows): Use of money and property 24,000 26,100 27,288 1,188 Intergovernmental 737,422 737,422 914,400 176,978 Other revenues - 600 1,452 852 Transfers from other funds - - 300 300 Amounts Available for Appropriation 5,296,953 5,299,653 3,284,870 (2,014,783) CHARGES TO APPROPRIATIONS (outflows) Health and Sanitation 490,159 685,673 373,566 312,107 Total Charges to Appropriations 490,159 685,673 373,566 312,107 Prior period adjustment - - 2,194,101 2,194,101 BUDGETARY FUND BALANCE, JUNE 30 4,806,794 $ 4,613,980 $ 5,105,405 $ 491,425 $ 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 3,284,870 $ 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 (2,341,430) Transfers from other funds are inflows of budgetary resources but are not revenues for financial reporting purposes (300) Total revenues as reported on the statement of revenues, expenditures, and changes 943,140 $ in fund balances - governmental funds 54 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule STPUD Mitigation Variance with For the Year Ended June 30, 2012 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 3,536,101 $ 3,536,101 $ 3,536,101 $ - $ RESOURCES (inflows): Use of money and property 33,802 33,802 24,048 (9,754) Charges for services 150,000 150,000 166,109 16,109 Amounts Available for Appropriation 3,719,903 3,719,903 3,726,258 6,355 CHARGES TO APPROPRIATIONS (outflows) Debt service 70,315 74,994 74,994 - Total Charges to Appropriations 70,315 74,994 74,994 - BUDGETARY FUND BALANCE, JUNE 30 3,649,588 $ 3,644,909 $ 3,651,264 $ 6,355 $ 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 3,726,258 $ 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 (3,536,101) Total revenues as reported on the statement of revenues, expenditures, and changes 190,157 $ in fund balances - governmental funds 55 ---PAGE BREAK--- COUNTY OF ALPINE Budgetary Comparison Schedule Realignment Fund Variance with For the Year Ended June 30, 2012 Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) BUDGETARY FUND BALANCE, JULY 1 3,258,438 $ 3,258,438 $ 3,258,438 $ - $ RESOURCES (inflows): Use of money and property 31,200 31,593 17,829 (13,764) Intergovernmental 1,044,671 1,458,824 1,418,628 (40,196) Amounts Available for Appropriation 4,334,309 4,748,855 4,694,895 (53,960) CHARGES TO APPROPRIATIONS (outflows) Transfers out to other funds 1,256,843 1,705,713 1,455,074 250,639 Total Charges to Appropriations 1,256,843 1,705,713 1,455,074 250,639 Prior period adjustment - - 784 784 BUDGETARY FUND BALANCE, JUNE 30 3,077,466 $ 3,043,142 $ 3,240,605 $ 197,463 $ 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 4,694,895 $ 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 (3,258,438) Total revenues as reported on the statement of revenues, expenditures, and changes 1,436,457 $ in fund balances - governmental funds Uses / outflows of resources: Actual charges to appropriations from the budgetary comparison schedule above 1,455,074 Differences - budget to GAAP: Transfers to other funds are outflows of budgetary resources but are not expenditures for financial reporting purposes (1,455,074) Total expenditures as reported on the statement of revenues, expenditures and changes in fund balances - governmental funds - $ 56 ---PAGE BREAK--- COUNTY OF ALPINE Note to Required Supplementary Information Fiscal Year Ended June 30, 2012 57 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 and Individual Fund Statements and Schedules ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Governmental Funds June 30, 2012 Permanent Special Fund Capital Revenue TPL Tax Projects Funds Exchange Funds Total ASSETS Cash and investments 4,086,696 $ 454,431 $ 753,282 $ 5,294,409 $ Accounts receivable 2,957 - - 2,957 Taxes receivable 54,081 - - 54,081 Due from other governments 864,087 - 64,026 928,113 Interest receivable 4,119 489 1,013 5,621 Deposits - - 400,000 400,000 Due from other funds 848,856 - 3,056 851,912 Total Assets 5,860,796 $ 454,920 $ 1,221,377 $ 7,537,093 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 396,581 $ 2,823 $ 95,060 $ 494,464 $ Accrued salaries and benefits 79,896 - - 79,896 Deferred revenue 343,692 - 64,026 407,718 Due to other funds 563,877 - 58,881 622,758 Advances from other funds 120,318 - - 120,318 Total Liabilities 1,504,364 2,823 217,967 1,725,154 Fund Balances: Nonspendable - 400,000 400,000 800,000 Restricted 4,469,608 - 267,281 4,736,889 Assigned - 52,097 399,317 451,414 Unassigned (113,176) - (63,188) (176,364) Total Fund Balances 4,356,432 452,097 1,003,410 5,811,939 Total Liabilities and Fund Balances 5,860,796 $ 454,920 $ 1,221,377 $ 7,537,093 $ 58 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended June 30, 2012 Permanent Special Fund Capital Revenue TPL Tax Projects Funds Exchange Funds Total REVENUES Taxes 314,502 $ - $ - $ 314,502 $ Licenses and permits 56,442 - - 56,442 Fines, forfeitures and penalties 1,794 - - 1,794 Use of money and property 33,671 2,403 205,316 241,390 Intergovernmental 5,702,739 - 3,888 5,706,627 Charges for services 515,779 - - 515,779 Other revenues 12,316 - - 12,316 Total Revenues 6,637,243 2,403 209,204 6,848,850 EXPENDITURES Current: General government 76,463 2,823 - 79,286 Public protection 1,816,364 - - 1,816,364 Public ways and facilities 367,639 - - 367,639 Health and sanitation 1,757,511 - - 1,757,511 Public assistance 1,300,025 - - 1,300,025 Capital outlay 35,956 - 820,404 856,360 Total Expenditures 5,353,958 2,823 820,404 6,177,185 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,283,285 (420) (611,200) 671,665 OTHER FINANCING SOURCES (USES) Transfers in 1,826,805 - 795,737 2,622,542 Transfers out (2,406,397) - (30,000) (2,436,397) Sale of assets 4,379 - - 4,379 Total Other Financing Sources and Uses (575,213) - 765,737 190,524 NET CHANGE IN FUND BALANCES 708,072 (420) 154,537 862,189 Fund Balances, Beginning of Year 3,290,611 466,417 848,873 4,605,901 Prior period adjustments 357,749 (13,900) - 343,849 FUND BALANCES, END OF YEAR 4,356,432 $ 452,097 $ 1,003,410 $ 5,811,939 $ 59 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Special Revenue Funds June 30, 2012 State Prop Public Mental Drug and 36 Health Health Alcohol SACPA ASSETS Cash and investments 50 $ 72,419 $ 543,748 $ 280,087 $ Accounts receivable 1,094 - - - Taxes receivable - - - - Due from other governments 60,014 - 29,196 - Interest receivable - 153 554 301 Due from other funds 184,985 - - - Total Assets 246,143 $ 72,572 $ 573,498 $ 280,388 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 9,541 $ 18,575 $ 107,028 $ - $ Accrued salaries and benefits 7,499 3,566 4,119 - Deferred revenue 35,533 - - - Due to other funds 55,742 6,806 8,983 - Advances from other funds 70,318 - - - Total Liabilities 178,633 28,947 120,130 - Fund Balances: Restricted 67,510 43,625 453,368 280,388 Unassigned - - - - Total Fund Balances 67,510 43,625 453,368 280,388 Total Liabilities and Fund Balances 246,143 $ 72,572 $ 573,498 $ 280,388 $ continued 60 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 Social Court Water Services Tobacco Services Rights ASSETS Cash and investments 243,333 $ 70,599 $ 28,578 $ 5,642 $ Accounts receivable 934 - - - Taxes receivable - - - - Due from other governments 87,389 - - - Interest receivable 274 83 26 - Due from other funds 280,585 191 - - Total Assets 612,515 $ 70,873 $ 28,604 $ 5,642 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 66,179 $ 24,505 $ 28,578 $ - $ Accrued salaries and benefits 16,642 1,812 - - Deferred revenue 87,389 - - - Due to other funds 49,270 850 - - Advances from other funds - - - - Total Liabilities 219,480 27,167 28,578 - Fund Balances: Restricted 393,035 43,706 26 5,642 Unassigned - - - - Total Fund Balances 393,035 43,706 26 5,642 Total Liabilities and Fund Balances 612,515 $ 70,873 $ 28,604 $ 5,642 $ continued 61 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 Parking Fish and Records Game Building Airport Mgmt ASSETS Cash and investments 52,624 $ 65,454 $ 36,233 $ 31,050 $ Accounts receivable 263 665 - - Taxes receivable - - - - Due from other governments - - - - Interest receivable 78 72 40 34 Due from other funds - - - - Total Assets 52,965 $ 66,191 $ 36,273 $ 31,084 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable - $ 1,041 $ - $ 39 $ Accrued salaries and benefits - 3,986 - - Deferred revenue - - - - Due to other funds 68 6,870 70 164 Advances from other funds - - - - Total Liabilities 68 11,897 70 203 Fund Balances: Restricted 52,897 54,294 36,203 30,881 Unassigned - - - - Total Fund Balances 52,897 54,294 36,203 30,881 Total Liabilities and Fund Balances 52,965 $ 66,191 $ 36,273 $ 31,084 $ continued 62 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 District Attorney Youth CC Perf. Victim Offender Incentives COPS Witness Block Grant Fund Grant ASSETS Cash and investments - $ 75,591 $ 70,904 $ 210,346 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 31,393 - 25,000 19,380 Interest receivable - 75 - 233 Due from other funds 1,051 - - 13,652 Total Assets 32,444 $ 75,666 $ 95,904 $ 243,611 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 7,718 $ 9,579 $ - $ - $ Accrued salaries and benefits 985 - - 6,799 Deferred revenue 22,340 - - - Due to other funds 30,721 - - 10,235 Advances from other funds - - - - Total Liabilities 61,764 9,579 - 17,034 Fund Balances: Restricted - 66,087 95,904 226,577 Unassigned (29,320) - - - Total Fund Balances (29,320) 66,087 95,904 226,577 Total Liabilities and Fund Balances 32,444 $ 75,666 $ 95,904 $ 243,611 $ continued 63 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 Cal-Mmet Sheriff Sheriff State Sheriff Anti-Drug OHV OES Grants Grants Grants Grants ASSETS Cash and investments 58,196 $ - $ - $ - $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 98,073 135,181 27,112 41,609 Interest receivable 24 (125) (14) (28) Due from other funds 5,509 2,220 - 244 Total Assets 161,802 $ 137,276 $ 27,098 $ 41,825 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable - $ 5,994 $ - $ 2,842 $ Accrued salaries and benefits 4,915 5,088 833 1,342 Deferred revenue 1,740 27,146 7,562 10,550 Due to other funds 40,763 130,274 16,254 43,312 Advances from other funds - - - - Total Liabilities 47,418 168,502 24,649 58,046 Fund Balances: Restricted 114,384 - 2,449 - Unassigned - (31,226) - (16,221) Total Fund Balances 114,384 (31,226) 2,449 (16,221) Total Liabilities and Fund Balances 161,802 $ 137,276 $ 27,098 $ 41,825 $ continued 64 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 Law Assessor's Recorder's Enforcement Special Special Search and AB443 Revenue Fund Revenue Fund Rescue ASSETS Cash and investments 1,026,976 $ 29,347 $ 100,000 $ 10,121 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments 129,015 - - - Interest receivable 1,165 31 107 - Due from other funds 3,741 - - - Total Assets 1,160,897 $ 29,378 $ 100,107 $ 10,121 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 16,118 $ 214 $ 2 $ - $ Accrued salaries and benefits 13,056 - - - Deferred revenue - - - - Due to other funds 9,724 - - - Advances from other funds - - - - Total Liabilities 38,898 214 2 - Fund Balances: Restricted 1,121,999 29,164 100,105 10,121 Unassigned - - - - Total Fund Balances 1,121,999 29,164 100,105 10,121 Total Liabilities and Fund Balances 1,160,897 $ 29,378 $ 100,107 $ 10,121 $ continued 65 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 County Alpine County Service Bear Valley Bear Valley Transportation Area No. 1 Public Safety Solid Waste Commission ASSETS Cash and investments 288,791 $ 31,000 $ 37,135 $ - $ Accounts receivable - - - - Taxes receivable 39,667 10,862 994 - Due from other governments 362 - - 62,745 Interest receivable 413 62 42 (23) Due from other funds - - - 2,800 Total Assets 329,233 $ 41,924 $ 38,171 $ 65,522 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable - $ 325 $ 15,920 $ 26,228 $ Accrued salaries and benefits - 6,215 - - Deferred revenue - - - 50,745 Due to other funds 3,122 - - 24,953 Advances from other funds - - - - Total Liabilities 3,122 6,540 15,920 101,926 Fund Balances: Restricted 326,111 35,384 22,251 - Unassigned - - - (36,404) Total Fund Balances 326,111 35,384 22,251 (36,404) Total Liabilities and Fund Balances 329,233 $ 41,924 $ 38,171 $ 65,522 $ continued 66 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 Local State Transit Chamber of Transportation Assistance Commerce Fire Fund Fund Programs Protection ASSETS Cash and investments 48,120 $ 35,092 $ 17,609 $ 203,511 $ Accounts receivable 1 - - - Taxes receivable 2,558 - - - Due from other governments - 1,681 - - Interest receivable 88 38 - 217 Due from other funds 22,926 - - - Total Assets 73,693 $ 36,811 $ 17,609 $ 203,728 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable - $ - $ 17,594 $ - $ Accrued salaries and benefits - - - - Deferred revenue - - - - Due to other funds 2,800 - 15 - Advances from other funds - - - - Total Liabilities 2,800 - 17,609 - Fund Balances: Restricted 70,893 36,811 - 203,728 Unassigned - - - - Total Fund Balances 70,893 36,811 - 203,728 Total Liabilities and Fund Balances 73,693 $ 36,811 $ 17,609 $ 203,728 $ continued 67 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 Public Behavioral Public SAFER Health Health Safety Grant Misc. Grants Misc. Grants Misc. Grants ASSETS Cash and investments - $ 202,084 $ 4,061 $ 20,058 $ Accounts receivable - - - - Taxes receivable - - - - Due from other governments - 98,387 - - Interest receivable - 188 - - Due from other funds - 262 - - Total Assets - $ 300,921 $ 4,061 $ 20,058 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable - $ 30,777 $ - $ - $ Accrued salaries and benefits - 3,039 - - Deferred revenue - 98,387 - - Due to other funds 5 37,684 - 58 Advances from other funds - 50,000 - - Total Liabilities 5 219,887 - 58 Fund Balances: Restricted - 81,034 4,061 20,000 Unassigned - - - Total Fund Balances 81,034 4,061 20,000 Total Liabilities and Fund Balances - $ 300,921 $ 4,061 $ 20,058 $ continued 68 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet (continued) Nonmajor Special Revenue Funds June 30, 2012 Other Miscellaneous Grants Total ASSETS Cash and investments 187,937 $ 4,086,696 $ Accounts receivable - 2,957 Taxes receivable - 54,081 Due from other governments 17,550 864,087 Interest receivable 11 4,119 Due from other funds 330,690 848,856 Total Assets 536,188 $ 5,860,796 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 7,784 $ 396,581 $ Accrued salaries and benefits - 79,896 Deferred revenue 2,300 343,692 Due to other funds 85,134 563,877 Advances from other funds - 120,318 Total Liabilities 95,218 1,504,364 Fund Balances: Restricted 440,970 4,469,608 Unassigned - (113,176) Total Fund Balances 440,970 4,356,432 Total Liabilities and Fund Balances 536,188 $ 5,860,796 $ 69 ---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, 2012 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 14,588 309 2,814 1,481 Intergovernmental 124,315 35,606 252,479 - Charges for services 96,641 - - - Other revenues 2,475 - - - Total Revenues 238,019 35,915 255,293 1,481 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation 448,690 423,394 371,857 - Public assistance - - - - Capital outlay - - - - Total Expenditures 448,690 423,394 371,857 - Excess (Deficiency) of Revenues Over (Under) Expenditures (210,671) (387,479) (116,564) 1,481 OTHER FINANCING SOURCES (USES) Transfers in 225,064 400,300 300 - Transfers out - - - - Sale of assets - - - - Total Other Financing Sources and Uses 225,064 400,300 300 - NET CHANGE IN FUND BALANCES 14,393 12,821 (116,264) 1,481 Fund Balances, Beginning of Year 53,117 30,804 569,632 - Prior period adjustments - - - 278,907 FUND BALANCES, END OF YEAR 67,510 $ 43,625 $ 453,368 $ 280,388 $ continued 70 ---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, 2012 Social Court Water Services Tobacco Services Rights REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 203 531 65 24 Intergovernmental 677,883 122,943 - - Charges for services - - - - Other revenues 8,296 - - - Total Revenues 686,382 123,474 65 24 EXPENDITURES Current: General government - - - - Public protection - - 28,578 - Public ways and facilities - - - - Health and sanitation - 182,570 - - Public assistance 1,300,025 - - - Capital outlay 6,217 - - - Total Expenditures 1,306,242 182,570 28,578 - Excess (Deficiency) of Revenues Over (Under) Expenditures (619,860) (59,096) (28,513) 24 OTHER FINANCING SOURCES (USES) Transfers in 880,716 - 28,491 - Transfers out - - - - Sale of assets 4,379 - - - Total Other Financing Sources and Uses 885,095 - 28,491 - NET CHANGE IN FUND BALANCES 265,235 (59,096) (22) 24 Fund Balances, Beginning of Year 127,800 23,960 48 5,618 Prior period adjustments - 78,842 - - FUND BALANCES, END OF YEAR 393,035 $ 43,706 $ 26 $ 5,642 $ continued 71 ---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, 2012 Parking Fish and Records Game Building Airport Mgmt REVENUES Taxes - $ - $ - $ - $ Licenses and permits - 53,544 - - Fines, forfeitures and penalties 1,671 - - - Use of money and property 257 501 134 159 Intergovernmental 38 - 30,000 - Charges for services 51,000 25,337 - 5,368 Other revenues 250 1,295 - - Total Revenues 53,216 80,677 30,134 5,527 EXPENDITURES Current: General government - - - 7,104 Public protection 57,649 170,925 - - Public ways and facilities - - 4,451 - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 57,649 170,925 4,451 7,104 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,433) (90,248) 25,683 (1,577) OTHER FINANCING SOURCES (USES) Transfers in - 31,573 - 3,379 Transfers out - - - - Sale of assets - - - - Total Other Financing Sources and Uses - 31,573 - 3,379 NET CHANGE IN FUND BALANCES (4,433) (58,675) 25,683 1,802 Fund Balances, Beginning of Year 57,330 112,969 10,520 29,079 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 52,897 $ 54,294 $ 36,203 $ 30,881 $ continued 72 ---PAGE BREAK--- COUNTY OF ALPINE Combining Statement of Revenues, Expenditures and Changes in Fund Balances (continued) Nonmajor Special Revenue Funds For the Year Ended June 30, 2012 District Attorney Youth CC Perf. Victim Offender Incentives COPS Witness Block Grant Fund Grant REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 303 - 1,411 Intergovernmental 45,057 98,196 100,000 950,090 Charges for services - - - - Other revenues - - - - Total Revenues 45,055 98,499 100,000 951,501 EXPENDITURES Current: General government - - - - Public protection 54,505 96,737 - 164,731 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures 54,505 96,737 - 164,731 Excess (Deficiency) of Revenues Over (Under) Expenditures (9,450) 1,762 100,000 786,770 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (4,096) (762,849) Sale of assets - - - - Total Other Financing Sources and Uses - - (4,096) (762,849) NET CHANGE IN FUND BALANCES (9,450) 1,762 95,904 23,921 Fund Balances, Beginning of Year (19,870) 64,325 - 202,656 Prior period adjustments - - - - FUND BALANCES, END OF YEAR (29,320) $ 66,087 $ 95,904 $ 226,577 $ 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, 2012 Cal-Mmet Sheriff Sheriff State Sheriff Anti-Drug OHV OES Grants Grants Grants FEMA REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 607 47 754 869 Intergovernmental 263,088 295,565 33,246 1,221,613 Charges for services - - - - Other revenues - - - - Total Revenues 263,695 295,612 34,000 1,222,482 EXPENDITURES Current: General government - - - - Public protection 144,528 214,431 27,945 49,923 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay 1,898 23,368 - - Total Expenditures 146,426 237,799 27,945 49,923 Excess (Deficiency) of Revenues Over (Under) Expenditures 117,269 57,813 6,055 1,172,559 OTHER FINANCING SOURCES (USES) Transfers in 3,923 1,144 - - Transfers out - - - (1,001,805) Sale of assets - - - - Total Other Financing Sources and Uses 3,923 1,144 - (1,001,805) NET CHANGE IN FUND BALANCES 121,192 58,957 6,055 170,754 Fund Balances, Beginning of Year (6,808) (90,183) (3,606) (186,975) Prior period adjustments - - - - FUND BALANCES, END OF YEAR 114,384 $ (31,226) $ 2,449 $ (16,221) $ 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, 2012 Law Enforcement Assessor's Recorder's Search and AB443 Trust Trust Rescue REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property 3,625 155 519 43 Intergovernmental 525,624 - - - Charges for services - 4,654 5,179 - Other revenues - - - - Total Revenues 529,249 4,809 5,698 43 EXPENDITURES Current: General government - 5,998 3,361 - Public protection 485,638 - - - Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay 4,473 - - - Total Expenditures 490,111 5,998 3,361 - Excess (Deficiency) of Revenues Over (Under) Expenditures 39,138 (1,189) 2,337 43 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (154,989) - - - Sale of assets - - - - Total Other Financing Sources and Uses (154,989) - - - NET CHANGE IN FUND BALANCES (115,851) (1,189) 2,337 43 Fund Balances, Beginning of Year 1,237,850 30,353 97,768 10,078 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 1,121,999 $ 29,164 $ 100,105 $ 10,121 $ 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, 2012 County Alpine County Service Bear Valley Bear Valley Transportation Area No. 1 Public Safety Solid Waste Commission REVENUES Taxes 254,502 $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties 123 - - - Use of money and property 2,023 36 156 (256) Intergovernmental 362 - - 139,082 Charges for services - 235,670 91,930 - Other revenues - - - - Total Revenues 257,010 235,706 92,086 138,826 EXPENDITURES Current: General government - - - - Public protection - 208,089 - - Public ways and facilities 140,871 - - 174,569 Health and sanitation - - 90,214 - Public assistance - - - - Capital outlay - - - - Total Expenditures 140,871 208,089 90,214 174,569 Excess (Deficiency) of Revenues Over (Under) Expenditures 116,139 27,617 1,872 (35,743) OTHER FINANCING SOURCES (USES) Transfers in 1,000 - 2,000 30,000 Transfers out - - - - Sale of assets - - - - Total Other Financing Sources and Uses 1,000 - 2,000 30,000 NET CHANGE IN FUND BALANCES 117,139 27,617 3,872 (5,743) Fund Balances, Beginning of Year 208,972 7,767 18,379 (30,661) Prior period adjustments - - - - FUND BALANCES, END OF YEAR 326,111 $ 35,384 $ 22,251 $ (36,404) $ 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, 2012 Local State Transit Chamber of Transportation Assistance Commerce Fire Fund Fund Programs Protection REVENUES Taxes - $ - $ 60,000 $ - $ Licenses and permits - - - 2,898 Fines, forfeitures and penalties - - - - Use of money and property 401 170 - 1,067 Intergovernmental 74,477 6,416 - - Charges for services - - - - Other revenues - - - - Total Revenues 74,878 6,586 60,000 3,965 EXPENDITURES Current: General government - - 60,000 - Public protection - - - 13,044 Public ways and facilities - - - - Health and sanitation - - - - Public assistance - - - - Capital outlay - - - - Total Expenditures - - 60,000 13,044 Excess (Deficiency) of Revenues Over (Under) Expenditures 74,878 6,586 - (9,079) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out (75,000) - - - Sale of assets - - - - Total Other Financing Sources and Uses (75,000) - - - NET CHANGE IN FUND BALANCES (122) 6,586 - (9,079) Fund Balances, Beginning of Year 71,015 30,225 - 212,807 Prior period adjustments - - - - FUND BALANCES, END OF YEAR 70,893 $ 36,811 $ - $ 203,728 $ 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, 2012 Pubic Behavioral Public SAFER Health Health Safety Grant Misc. Grants Misc. Grants Misc. Grants REVENUES Taxes - $ - $ - $ - $ Licenses and permits - - - - Fines, forfeitures and penalties - - - - Use of money and property (28) 600 58 Intergovernmental - 266,059 10,000 265,000 Charges for services - - - - Other revenues - - - - Total Revenues (28) 266,659 9,992 265,058 EXPENDITURES Current: General government - - - - Public protection - - - - Public ways and facilities - - - - Health and sanitation - 212,586 10,000 - Public assistance - - - - Capital outlay - - - - Total Expenditures - 212,586 10,000 - Excess (Deficiency) of Revenues Over (Under) Expenditures (28) 54,073 265,058 OTHER FINANCING SOURCES (USES) Transfers in 7,543 14,547 - - Transfers out - (52,147) - (245,058) Sale of assets - - - - Total Other Financing Sources and Uses 7,543 (37,600) - (245,058) NET CHANGE IN FUND BALANCES 7,515 16,473 20,000 Fund Balances, Beginning of Year (7,520) 64,561 4,069 - Prior period adjustments - - - - FUND BALANCES, END OF YEAR $ 81,034 $ 4,061 $ 20,000 $ 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, 2012 Other Miscellaneous Grants Total REVENUES Taxes - $ 314,502 $ Licenses and permits - 56,442 Fines, forfeitures and penalties - 1,794 Use of money and property 55 33,671 Intergovernmental 165,600 5,702,739 Charges for services - 515,779 Other revenues - 12,316 Total Revenues 165,655 6,637,243 EXPENDITURES Current: General government - 76,463 Public protection 99,641 1,816,364 Public ways and facilities 47,748 367,639 Health and sanitation 18,200 1,757,511 Public assistance - 1,300,025 Capital outlay - 35,956 Total Expenditures 165,589 5,353,958 Excess (Deficiency) of Revenues Over (Under) Expenditures 66 1,283,285 OTHER FINANCING SOURCES (USES) Transfers in 196,825 1,826,805 Transfers out (110,453) (2,406,397) Sale of assets - 4,379 Total Other Financing Sources and Uses 86,372 (575,213) NET CHANGE IN FUND BALANCES 86,438 708,072 Fund Balances, Beginning of Year 354,532 3,290,611 Prior period adjustments - 357,749 FUND BALANCES, END OF YEAR 440,970 $ 4,356,432 $ 79 ---PAGE BREAK--- COUNTY OF ALPINE Combining Balance Sheet Nonmajor Capital Projects Funds June 30, 2012 Leviathan Accumulated County Parks and Peak Capital Vehicle Road Recreation Communications Outlay Replacement Improvement Grant Tower Total ASSETS Cash and investments 288,856 $ 170,088 $ - $ - $ 294,338 $ 753,282 $ Due from other governments - - 64,026 - - 64,026 Interest receivable 494 183 (23) - 359 1,013 Deposits - 400,000 - - - 400,000 Due from other funds - - - 3,056 - 3,056 Total Assets 289,350 $ 570,271 $ 64,003 $ 3,056 $ 294,697 $ 1,221,377 $ LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 60,304 $ - $ 7,340 $ - $ 27,416 $ 95,060 $ Deferred revenue - - 64,026 - - 64,026 Due to other funds - - 55,825 3,056 - 58,881 Total Liabilities 60,304 - 127,191 3,056 27,416 217,967 Fund Balances: Nonspendable - 400,000 - - - 400,000 Restricted - - - - 267,281 267,281 Assigned 229,046 170,271 - - - 399,317 Unassigned - - (63,188) - - (63,188) Total Fund Balances 229,046 570,271 (63,188) - 267,281 1,003,410 Total Liabilities and Fund Balances 289,350 $ 570,271 $ 64,003 $ 3,056 $ 294,697 $ 1,221,377 $ 80 ---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, 2012 Leviathan Accumulated County Parks and Peak Capital Vehicle Road Recreation Communications Outlay Replacement Improvement Grant Tower Total REVENUES Use of money and property 1,528 $ 899 $ 31 $ 18 $ 202,840 $ 205,316 $ Intergovernmental - - 3,888 - - 3,888 Total Revenues 1,528 899 3,919 18 202,840 209,204 EXPENDITURES Capital outlay 407,540 - 60,242 - 352,622 820,404 Total Expenditures 407,540 - 60,242 - 352,622 820,404 Excess (Deficiency) of Revenues Over (Under) Expenditures (406,012) 899 (56,323) 18 (149,782) (611,200) OTHER FINANCING SOURCES (USES) Transfers in 392,681 400,000 - 3,056 - 795,737 Transfers out (30,000) - - - - (30,000) Total Other Financing Sources and Uses 362,681 400,000 - 3,056 - 765,737 NET CHANGE IN FUND BALANCES (43,331) 400,899 (56,323) 3,074 (149,782) 154,537 Fund Balances, Beginning of Year 272,377 169,372 (6,865) (3,074) 417,063 848,873 FUND BALANCES, END OF YEAR 229,046 $ 570,271 $ (63,188) $ - $ 267,281 $ 1,003,410 $ 81