Open Space Audit Report 08

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SONOMA COUNTY AGRICULTURAL PRESERVATION AND OPEN SPACE DISTRICT ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2008 RODNEY A. DOLE SONOMA COUNTY AUDITOR-CONTROLLER TREASURER-TAX COLLECTOR SONOMA COUNTY AGRICULTURAL PRESERVATION AND OPEN SPACE DISTRICT Annual Report For the Fiscal Year Ended June 30, 2008 TABLE OF CONTENTS Page Introduction Auditor-Controller’s Report Management’s Discussion and Analysis .............................................................................. 1 – 6 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Assets ........................................................................................... 7 Statement of Activities ............................................................................................. 8 Fund Financial Statements: Balance Sheet – Governmental Fund ....................................................................... 9 Reconciliation of Balance Sheet to Statement of Net Assets.................................... 10 Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Fund .................................................. 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Fund to the Statement of Activities ............................................... 12 Notes to the Basic Financial ...

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• Publié par: Fuiv
• Nombre de lectures: 23
• Langue: English

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SONOMA COUNTY AGRICULTURAL PRESERVATION AND OPEN SPACE DISTRICT   ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2008

       

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

 

 

  SONOMA COUNTY AGRICULTURAL PRESERVATION AND OPEN SPACE 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

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    Introduction    Auditor-Controller’s Report   Management’s Discussion and Analysis    – 6.............................................................................. 1   Basic Financial Statements:  Government-wide Financial Statements:  Statement of Net Assets ........................................................................................... 7  Statement of Activities ............................................................................................. 8  Fund Financial Statements:  Balance Sheet – Governmental Fund ....................................................................... 9  Reconciliation of Balance Sheet to Statement of Net Assets.................................... 10  Statement of Revenues, Expenditures, and  Changes in Fund Balance – Governmental Fund .................................................. 11  Reconciliation of the Statement of Revenues,  Expenditures and Changes in Fund Balance of  Governmental Fund to the Statement of Activities ............................................... 12     Notes to the Basic Financial Statements .............................................................................. 13 – 24   Required Supplementary Information................................................................................... 25   Other Supplementary Information……………………. ....................................................... 26 - 41        

 

 

Introduction     The Sonoma County Agricultural Preservation & Open Space District (“the District) was created in 1990 by a vote of the Sonoma County electorate. The mission of the Sonoma County Agricultural Preservation and Open Space District (District) is to permanently preserve the diverse landscapes of Sonoma County for future generations, including working farms and ranches; greenbelts and community separators between and around urban areas, natural areas and wildlife habitat, and land for public access and passive recreation. Since its inception, the District has protected over 75,000 acres at a cost of $269 million; and today, ranks as one of the top open space and farmland conservation programs in the nation.   The District is a separate legal entity and has specific purposes and powers, which are set out in Public Resources Code Sections 5500 et seq. 1   Primaryfinancing for the District comes from a voter-approved 0.25 percent sales tax. The District is thus different from Sonoma County departments, which are created by the Board of Supervisors for internal administrative convenience, but are not separate legal entities.   The 5-member Open Space Authority levies the sales tax and ensures that the District’s open space purchases are consistent with the voter-approved expenditure plan. The Authority currently contracts with the District to acquire open space (planning, appraisal, negotiation and stewardship) and pays directly into escrow for the acquisitions. The District partners with willing landowners, public agencies and non-profit organizations to protect land permanently from being developed, through agreements with landowners (conservation easements) and through outright purchase of land.   The District’s status as a separate legal entity with specific powers affects the types of activities in which the District may engage. Unlike Sonoma County, which generally may spend its general fund revenues for activities the Board of Supervisors determines benefit the public good, 2 further the purposes specified in thethe District may only expend its sales tax revenue to voter approved Expenditure Plan. 3  Unlike the County, the District has no general land use authority, and does not exercise general regulatory “police powers.”   Because of the separate powers and revenue sources of the District, the District’s revenues, expenses and assets are held and accounted for separately from Sonoma County’s. 4  When County officials perform services for the District, they are separately paid for those services by the District, pursuant to agreements between the District and the County. Similarly, when District personnel perform services for the County, the County pays the Agency for those services. Payments are subject to fiscal oversight by the Sonoma County Open Space Authority, to assure the public that they are consistent with the Expenditure Plan and that they are based on                                                   1   See Public Resources Code Sections 5506.5 and 5506.6 and Sonoma County Measure A, 1990 General Election ballot. Unless otherwise specified, all section references are to the Public Resources Code.   2   See Government Code Section 26227.   3   See Revenue & Taxation Code Section 7285.5 and the contract between the District and the Sonoma County Open Space Authority. See alsoGolden Bridge District v. Luehring(1970) 4 Cal. App.3d 204.      4 Sonoma County Ordinance no 5677R (“The Sonoma County Open Space, Clean Water andSee Section 4 of Farmland Protection Measure”).

 

 

actual cost. The District holds separate title to its real property and assets, and the County may not use District property or funds for County purposes absent an appropriate agreement that is consistent with the voter approved Expenditure Plan. The District is also subject to different laws than the County regarding acquisition and disposition of property. 5                

   

   

   

                                                    5   For instance, see Public Resources Section 5540.

 

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 Sonoma County Agriculture Preservation and Open Space District Santa Rosa, CA Auditor-Controller’s Report     We have audited the accompanying basic financial statements of the Sonoma County Agricultural Preservation and Open Space 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.   The Management’s Discussion and Analysis (MD&A) on pages 1 through 6 and the budgetary comparison information on page 25 are not a required part of the basic financial statements but are supplementary information required by the Government Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.     April 9, 2009

 

Management’s Discussion and Analysis

    As management of the Sonoma County Agriculture Preservation and Open Space 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 (pages 7-12) and the accompanying notes to the basic financial statements (pages 13-24).     Financial Highlights   •   2007 the County of Sonoma issued Measure F Sales Tax Revenue bonds.On November 7, The proceeds from these bonds have been and will be the primary source of funding until the proceeds have been completely spent. During fiscal year 2007-08, the District received $58,173,819 in transfers from County of Sonoma bond proceeds. $37,486,332 was used for retirement of debt related to prior year land purchases, and $20,687,487 was used for land and easement purchases.   •   liabilities at the close of the most recent fiscal year byDistrict assets exceeded its $271,722,437 (net assets). The District reported unrestricted net assets of $2,331,211.   •    majority of this increase,The District’s total net assets increased by $58,874,450. The $58,173,819, is due to transfers from the County of Sonoma for the retirement of debt related to purchases of land and easements, as well as purchases of land and easements.   •   The District’s total debt decreased $31,818,980 or 99.4 percent during the current fiscal year due to debt service payments.       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.    

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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. 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., unused vacation leave).   The government-wide financial statements can be found on pages 7 – 8 of this report.   Fund financial statements. fund is a grouping of related accounts that is used to maintain A 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.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 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 preservation of open space in the district’s 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.   The basic governmental fund financial statements can be found on pages 9 – 12 of this report.   Notes to the basic 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. The notes to the basic financial statements can be found on pages 13 – 24 of this report.            

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    Government-wide Financial Analysis   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 $271,722,437 at the close of the most recent fiscal year.   By far the largest portion of the District’s net assets reflects its investment in capital assets (e.g., land and easements).   Net Assets Increase 2008 2007 (Decrease) Current and other assets $ 3,203,405 $ 2,613,169 $ 590,236 Capital assets 268,812,213 247,304,548 21,507,665 Total assets 272,015,618 249,917,717 22,097,901 Long-term liabilities outstanding 166,836 21,964,407 (21,797,571) Other liabilities outstanding 126,345 15,105,323 (14,978,978) Total liabilities 293,181 37,069,730 (36,776,549) Net assets: Invested in capital assets, net of related debt 268,795,547 215,497,160 53,298,387 Restricted 595,679 1,371,323 (775,644) Unrestricted 2,331,211 (4,020,496) 6,351,707 Total net assets $ 271,722,437 $ 212,847,987 $ 58,874,450       The balance of the unrestricted net assets is $2,331,211 and may be used to meet the District’s ongoing obligations.     At the end of the current fiscal year, the District is able to report positive balances for the government as a whole.   Governmental activities. activities  Governmentalincreased the District’s net assets by $58,874,450 due to transfers from the County of Sonoma.   3 --

 

Changes in Net Assets Increase 2008 2007 (Decrease)

$ 4,449,511 $ 23,893,689 $ (19,444,178)  413,032 134,854 278,178  4,862,543 24,028,543 (19,166,000)

 4,170,650 5,618,497 (1,447,847)  4,170,650 5,618,497 (1,447,847)

Revenues: Program Revenues: Open space preservation General Revenues: Investment income and other Total revenues Expenses: Program Expenses: Open space preservation Total expenses Other financing sources (uses) Transfers in - contribution from the County 58,173,819 - 58,173,819 Transfers in - miscellaneous 16,335 16,335 - Transfers out - primary government (7,597) - (7,597) Increase (decrease) in net assets 58,874,450 18,410,046 40,464,404 Net assets - beginning of the year, as restated 212,847,987 194,437,941 18,410,046 Net assets - end of the year $ 271,722,437 $ 212,847,987 $ 58,874,450       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.The focus of the District’s governmental funds is to provide information on 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.   The general fund is the chief operating fund of the District. As of the end of the current fiscal year, the District’s governmental funds reported ending fund balance of $3,093,726, an increase of $5,547,805 in comparison with the prior year. Unreserved fund balance is $752,587. The remainder of fund balance is reserved for future financing commitments or restricted donations.  

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  General Fund Budgetary Highlights   Material differences between the original budget and the final amended budget are due primarily to the transfer from the County of Sonoma to fund the purchases of land and easements.     Capital Asset and Debt Administration   Capital assets.The District’s investment in capital assets, as of June 30, 2008, amounts to $268,812,213. This investment in capital assets includes land, easements and pre-acquisition costs. The total increase in the District’s investment in capital assets for the current fiscal year was $21,289,557.   Major capital asset events during the current fiscal year included the following:   •   During the year, a total of 3,885 acres of land was protected in perpetuity through the acquisition of 7 fee/conservation easements. The acquisitions were financed with a transfer from the County of Sonoma, and contributions from the Sonoma County Open Space Authority.   Additional information on the District’s capital assets can be found in Note III.C on page 21 of this report.   Debt administration.At the end of the current fiscal year, the District had total current obligations outstanding of $16,666. During the current fiscal year, the District’s total long-term obligations decreased by $31,818,980.   Additional information on the District's long term debt can be found in Note III.D on page 22 of this report.  

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Economic Factors and Next Year’s Budgets and Rates   •   Primary funding for the District comes from the voter approved one quarter percent sales tax. The tax was initially imposed for a period of 20 years ending the first quarter of 2011. In November 2006 the voters passed Measure F, the initiative which extends the tax for another 20 years ending the first quarter of 2031.   •   Possible decrease in sales tax revenues would affect funding available for acquisition of interests in land and intergovernmental revenue received.   •   The proceeds from the County of Sonoma bonds will continue to be the primary source of funding for land and easement acquisition until they have been exhausted. Net proceeds from the issuance of the bonds totaled $84,343,101. As of June 30, 2008 the District has spent $58,173,819 of these proceeds leaving a balance of $26,169,282 available for FY 2008-09.    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 Sonoma County Agricultural Preservation and Open Space District, 747 Mendocino Avenue, Suite 100, Santa Rosa, CA 95401-4850.          

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