Audit Report Rincon Valley Fire Protection District 2008

Sonoma County Auditor Controller [phone]

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RINCON VALLEY FIRE PROTECTION DISTRICT ANNUAL REPORTFOR THE FISCAL YEAR ENDED JUNE 30, 2008 RODNEY A. DOLE SONOMA COUNTY AUDITOR-CONTROLLER TREASURER-TAX COLLECTOR RINCON VALLEY FIRE PROTECTION DISTRICT Annual Report For the Fiscal Year Ended June 30, 2008 T A B L E O F C O N T E N T S Page Auditor-Controller’s Report Management’s Discussion and Analysis........................................................................... 1-5 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ....................................................................................... 6 ent of Activities ......................................................................................... 7 Fund Financial Statements: Balance Sheet – Governmental Funds ................................................................. 8 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets ....................................................................... 9 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ....................................... 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities ...................................... 11 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budgets ...

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RINCON VALLEY FIRE PROTECTION DISTRICT ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2008

 

RODNEY A. DOLE SONOMA COUNTY   AUDITOR - CONTROLLER   TREASURER - TAX COLLECTOR

 

 

RINCON VALLEY FIRE PROTECTION DISTRICT   Annual Report For the Fiscal Year Ended June 30, 2008

T A B L E O F C O N T E N T S

 Page

          Auditor-Controller’s Report   Management’s Discussion and Analysis........................................................................... 1-5   Basic Financial Statements:  Government-wide Financial Statements: Statement of Net Assets ....................................................................................... 6 Statement of Activities ......................................................................................... 7 Fund Financial Statements: Balance Sheet – Governmental Funds ................................................................. 8 Reconciliation of the Governmental Funds Balance Sheet  to the Statement of Net Assets ....................................................................... 9 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ....................................... 10 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities ...................................... 11 Statement of Revenues, Expenditures, and Changes in Fund Balance – Budgets and Actual - General Fund ............................................................... 12 Budgets and Actual - Special Revenue Fund ................................................. 13   Notes to the Basic Financial Statements .......................................................................... 14-26   Required Supplementary Information: Schedule of Funding Status – Miscellaneous Plan....................................................... 27 Schedule of Funding Status – Safety Plan.................................................................... 27   Roster of Board Members ................................................................................................ 28            

 

DONNA M. DUNK   ASSISTANT AUDITOR-CONTROLLER ROBERT BOITANO   ASSISTANT TREASURER   PAM JOHNSTON   ASSISTANT TAX COLLECTOR / AUDITOR

 Auditor-Controller  Treasurer-Tax Collector  RODNEY A. DOLE County of Sonoma     AUDITOR-CONTROLLER 585 FISCAL DRIVE TREASURER -TAX COLLECTOR SUITE 101F  SANTA ROSA, CALIFORNIA  95403-2819  [phone]  FAX [phone]                 Board of Directors Rincon Valley Fire Protection District Santa Rosa, CA   Auditor-Controller’s Report     We have audited the accompanying basic financial statements of the Rincon Valley Fire Protection District (the District), as of and for the year ended June 30, 2008, which collectively comprise the basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District’s management. Our responsibility is to express an opinion on the financial statements based on our audit.   We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and 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 opinion.   As described in Note IV.C of the Notes to the Basic Financial Statements, the Auditor-Controller is mandated by various statutes within the California Government Code to perform certain accounting, auditing and financial reporting functions. These activities, in themselves, necessarily impair the auditor’s independence. However, we believe adequate safeguards and divisions of responsibility exist.   In our opinion, except for the effects, if any, of the impairment to auditor independence, the basic financial statements referred to above present fairly, in all material respects, the financial position of the District as of June 30, 2008, and the respective changes in its financial position for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

February 10, 2009      

 

 

Management’s Discussion and Analysis

    As management of the Rincon Valley Fire Protection District (the District) we offer readers of the District’s financial statements this narrative overview and analysis of the financial activities of the District for the fiscal year ended June 30, 2008. We encourage readers to consider the information presented here in conjunction with the District’s financial statements and the accompanying notes to the financial statements.     Financial Highlights   •   The assets of the District exceeded its liabilities at the close of the most recent fiscal year by $4,239,088 (net assets). Of this amount, $1,117,197 (unrestricted net assets) may be used to meet the government’s ongoing obligations to citizens and creditors. •   The District’s total net assets increased by $486,482. This increase is a result of revenues exceeding expenses in the governmental activities. •   As of the close of the current fiscal year, the District’s governmental funds reported an ending fund balance of $3,023,068, an increase of $599,001, in comparison with the prior year. Approximately 49% of this total amount is available for spending at the government’s discretion (unreserved fund balance). •   At the end of the year, unreserved fund balance for the general fund was $1,474,785 or 35% of the total general fund expenditures of $4,236,983. •   The District’s total long-term debt increased by $21,618 (6%) during the current fiscal year.   Overview of the Financial Statements   This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements. The District’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 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 District’s finances, in a manner similar to a private- sector business.   The statement of net assets presents information on all of the District’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 District is improving or deteriorating.     The statement of activities presents information showing how the government’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 flows.  

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Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).   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 District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District’s funds are governmental funds.   Governmental funds funds are used to account for essentially the same functions: Governmental reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.   Because the focus of governmental funds is narrower than that of the 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 fund balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.   The District uses governmental funds to account for its activities, which include fire protection services in the district boundaries. The district adopts an annual appropriated budget for its funds. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget.   Notes to the financial statements: The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.     Government-wide Financial Analysis   The District applied Governmental Accounting Standards Board (GASB) Statement No. 34 in this report.   As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets exceeded liabilities by $4,239,088 at the close of the most recent fiscal year.   A large portion of the District’s net assets (37%) reflects its investment in capital assets (e.g., land, buildings and improvements and equipment). The District uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.    

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Net Assets June 30, 2008

$ 3,117,816 1,573,608 4,691,424 357,588 94,748 452,336

Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets 1,573,608 Restricted for capital replacement 1,493,159 Restricted for mitigation fund 55,124 Unrestricted 1,117,197 Total net assets $ 4,239,088     The balance of unrestricted net assets ($1,117,197) may be used to meet the District’s ongoing obligations to citizens and vendors.   At the end of the current fiscal year, the District is able to report positive balances in all categories of net assets. The same held true for the prior fiscal year.   Governmental activities: Governmental activities increased the District’s net assets by $486,482. This increase is a result of revenues exceeding expenses in the governmental activities.                                

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Chan es in Net Assets For the Fiscal Year Ended June 30, 2008

$ 233,918 4,507,706 94,360 4,835,984

4,349,502 486,482 3,752,606 $ 4,239,088  

    Revenues: Program revenues: Public safety - fire protection General revenues: Property taxes Investment income and other Total revenues Expenses: Public safety - fire protection Increase in net assets Net assets - beginning of the year Net assets - end of the year   Financial Analysis of the Government’s Funds   As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-related requirements.   Governmental funds:District’s governmental fund is to provide information onThe focus of the near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the District’s financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.     As of the end of the current fiscal year, the District’s governmental fund reported ending fund balance of $3,023,068, an increase of $599,001 in comparison with the prior year. Approximately 49% of the total amount constitutes unreserved fund balance, which is available for spending at the government’s discretion. The remainder of fund balance is reserved for capital improvements or in a special revenue fund.   The general fund is the chief operating fund of the District. At the end of the current fiscal year, unreserved fund balance of the general fund was $1,474,785, while the total fund balance was $2,967,944. As a measure of the general fund’s liquidity, it may be useful to compare unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 35% of total general fund expenditures.     General Fund Budgetary Highlights

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  There were no changes to the original adopted budget.     Capital Asset and Debt Administration   Capital assets.The District’s investment in capital assets, as of June 30, 2008, amounts to $1,573,608 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, and equipment. The total decrease in the District’s investment in capital assets for the current fiscal year was $90,901.   Major capital asset events during the current fiscal year included the following:   •    ($117,386)Depreciation of the capital assets •    $ 5,213Purchase of equipment •    $ 21,272Purchase in building improvements   Additional information on the District’s capital assets can be found in note III.B of this report.   Debt Administration: At the end of the current fiscal year, the District had total long-term obligations outstanding of $357,588 in compensated absences. During the current fiscal year, the District’s total long-term debt increased by $21,618.     Economic Factors and Next Year’s Budgets and Rates     Continuing increase in health insurance rates. • •   Possible reduction of intergovernmental revenue due to State of California budget crisis.   All of these factors were considered in preparing the District’s budget for the fiscal year ending June 30, 2009.   Request for Information     This financial report is designed to provide a general overview of the District’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 District, P.O. Box 530, Windsor, California 95492.

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RINCON VALLEY FIRE PROTECTION DISTRICT Statement of Net Assets June 30, 2008

Assets Cash and investments Due from other government Flat charges receivable Capital assets (net of accumulated depreciation) Non-depreciable Depreciable, net of depreciation Total assets Liabilities Accounts payable Non-current liabilities: Compensated absences - Due in more than one year Total liabilities Net Assets Invested in capital assets, net of related debt Restricted for capital replacement Restricted for mitigation fund Unrestricted Total net assets

$

$

The notes to the basic financial statements are an integral part of this statement.

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3,005,299 60,973 51,544 82,363 1,491,245 4,691,424

94,748 357,588 452,336

1,573,608 1,493,159 55,124 1,117,197 4,239,088

 

 

RINCON VALLEY FIRE PROTECTION DISTRICT Statement of Activities For the Fiscal Year Ended June 30, 2008

Pro ram Expenses Public safety - fire protection Salaries and employee benefits Services and supplies Depreciation Total program expenses Pro ram Revenues Charges for services Intergovernmental revenue Licenses and permits Other charges for services Total charges for services Capital Grants and Contributions FEMA grant revenue Operating Grants and Contributions FEMA grant revenue Total program revenues Net program revenues (expenses) General revenues Property taxes Investment earnings Total general revenues Change in net assets Net assets, beginning of year Net assets, end of year

 

$

$

The notes to the basic financial statements are an integral part of this statement.

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3,733,391 498,725 117,386 4,349,502

197,673 1,620 18,947 218,240 9,058 6,620 233,918 (4,115,584)

4,507,706 94,360 4,602,066 486,482 3,752,606 4,239,088

 

 

RINCON VALLEY FIRE PROTECTION DISTRICT Balance Sheet Governmental Funds June 30, 2008

Total Special Governmenta General Revenue Funds $ 2,951,075 $ 54,224 $ 3,005,299 60,973 60,973 50,644 900 51,544 $ 3,062,692 $ 55,124 $ 3,117,816

$ 94,748  $  94,748

Assets Cash and investments Due from other government Flat charges receivable Total assets Liabilities and Fund Balances Liabilities: Accounts payable Fund balances: Unreserved 1,404,354 1,404,354 Unreserved, designated for unemployment insurance  70,431  70,431 Reserved for capital improvements  1,493,159  1,493,159 Reserved for mitigation  $ 55,124  55,124 Total fund balances 2,967,944 55,124 3,023,068 Total liabilities and fund balances $ 3,062,692 $ 55,124 $ 3,117,816

The notes to the basic financial statements are an integral part of this statement.                      

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