Audit Report 2008 Spud Point Enterprise Fund

Sonoma County Auditor Controller Treasurer Tax Collector [phone]

Description

COUNTY OF SONOMA SPUD POINT ENTERPRISE FUND ANNUAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2008 COUNTY OF SONOMA SPUD POINT MARINA ENTERPRISE FUND Annual Report For the Fiscal Year Ended June 30, 2008 TABLE OF CONTENTS Page Auditor-Controller’s Report Basic Financial Statements: Statement of Net Assets ................................................................................................. 1 ent of Revenues, Expenses and Change in Fund Net Assets .............................. 2 Statement of Cash Flows 3 Notes to the Basic Financial Statements ........................................................................ 4 – 14 Auditor-Controller Treasurer-Tax Collector RODNEY A. DOLE County of Sonoma DONNA M. DUNK AUDITOR-CONTROLLER 585 FISCAL DRIVE ASSISTANT TREASURER -TAX COLLECTOR SUITE 101F AUDITOR-CONTROLLER SANTA ROSA, CALIFORNIA 95403-2819 ROBERT BOITANO (707) 565-2631 ASSISTANT FAX [phone] TREASURER PAM JOHNSTON ASSISTANT TAX COLLECTOR / AUDITOR Mary Burns, Director Sonoma County Regional Parks 2300 County Center Drive, Suite 120 Santa Rosa, CA 95403 Auditor-Controller’s Report We have audited the accompanying financial statements of the Spud Point Marina Enterprise Fund (the Marina), as of and for the year ended June 30, 2008, which collectively comprise the basic financial statements as listed in ...

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

Extrait

COUNTY OF SONOMA  SPUD POINT ENTERPRISE FUND 

ANNUAL REPORT  FOR THE FISCAL YEAR ENDED  JUNE 30, 2008 

COUNTY OF SONOMA  SPUD POINT MARINA ENTERPRISE FUND 

Auditor-Controller’s Report

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

Basic Financial Statements:  Statement of Net Assets ................................................................................................. 1  Statement of Revenues, Expenses and Change in Fund Net Assets .............................. 2  Statement of Cash Flows................................................................................................. 3  Notes to the Basic Financial Statements ........................................................................ 4 – 14 

RODNEY A. DOLE AUDITOR-CONTROLLER TREASURER -TAX COLLECTOR

Auditor-Controller  Treasurer-Tax Collector  County of Sonoma 585 FISCAL DRIVE SUITE 101F SANTA ROSA, CALIFORNIA 95403-2819 [phone] FAX [phone]

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

Mary Burns, Director Sonoma County Regional Parks 2300 County Center Drive, Suite 120 Santa Rosa, CA 95403 Auditor-Controller’s Report We have audited the accompanying financial statements of the Spud Point Marina Enterprise Fund (the Marina), 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 Marina’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 III.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. As discussed in Note I.A., the basic financial statements of the Marina are intended to present the financial position, and the changes in financial position and cash flows of only that portion of the business-type activities and the aggregate remaining fund information of the County of Sonoma that is attributable to the transactions of the Marina. They do not purport to, and do not, present fairly the financial position of the County of Sonoma as of June 30, 2008, and the changes in its financial position and its cash flows, where applicable, for the year then ended in conformity with accounting principles generally accepted in the United States of America. 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 Spud Point Marina Enterprise Fund as of June 30, 2008 and the respective changes in its financial position and cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The Marina has not presented the management’s discussion and analysis information that the Government Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements.

October 10, 2008

COUNTY OF SONOMA  SPUD POINT MARINA ENTERPRISE FUND  Statement of Net Assets  June 30, 2008 

Assets Current assets: Cash and investments Petty cash Cash with trustee Accounts receivable, net of allowance for doubtful accounts Inventory Total current assets Noncurrent assets: Customer deposits Capital assets, net of accumulated depreciation Total noncurrent assets Total assets Liabilities  Current liabilities: Accounts payable and accrued liabilities Deferred revenue Interest payable Advances from other governments Total current liabilities Customer de osits a able from restricted assets Noncurrent liabilities: Accrued vacation and sick leave Advances from other governments Total noncurrent assets Total liabilities Net Assets Investment in capital assets, net of related debt Unrestricte Total net assets The notes to the financial statements are an integral part of this statement.

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$

$

772,453 950 10,158 75,264 60,009 918,834 49,009 4,199,404 4,248,413 5,167,247

147,004 93,288 165,000 192,456 597,748 49,009 16,748 3,807,544 3,824,292 4,471,049 199,404 496,794 696,198

 COUNTY OF SONOMA SPUD POINT MARINA ENTERPRISE FUND  Statement of Revenues, Expenses and Chan e in Fund Net Assets  Enterprise Fund  For the Fiscal Year Ended June 30, 2008 

Operatin Revenues Costs for sales and services Charges for services Total operating revenues Operatin Expenses Costs for sales and services Salaries and employee benefits Services and supplies Depreciation and amortization Long term debt - Interest Bad debt expense Total operating expenses Operating loss Non-Operatin Revenues (Expenses) Operating transfer Interest income Total nonoperating revenues (expenses) Change in net assets Net assets, beginning of year Net assets, end of year

$ 1,928,329 1,928,329

432,294 1,451,319 52,344 165,000 15,211 2,116,168 (187,839) 381,926 25,421 407,347 219,508 476,690 $ 696,198

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

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 COUNTY OF SONOMA  SPUD POINT MARINA ENTERPRISE FUND Statement of Cash Flows June 30, 2008 Cash Flows from Operatin Activities: Receipts from customers Payments to suppliers Payments to employees Net cash provided by operating activities Cash Flows from Capital and Related Financin  Activities: Principal paid on capital debt Transfer from other funds Net cash provided by capital and related financing activities Cash Flows from Investin Activities: Interest in pooled cash Net increase in cash and cash equivalents Cash and cash equivalents, July 1 Cash and cash equivalents, June 30 Reconciliation of Operatin Income (Loss) to Net Cash Provided (Used) b Operatin Activities: Operating loss Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense Increase in accounts receivable Increase in inventory Decrease in accounts payable Increase in other liabilities Decrease in deferred revenue Decrease in deposits from others Decrease in accrued vacation and sick leave Increase in interest payable Total adjustments Net cash provided by operating activities The notes to the financial statements are an integral part of this statement.

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$

$ $

$

1,852,577 (1,530,154) (434,562) (112,139) (2,000,000) 381,926 (1,618,074) 25,421 (1,704,792) 2,537,362 832,570 (187,839) 52,344 (36,500) (23,502) (56,074) 741 (17,351) (6,690) (2,268) 165,000 75,700 (112,139)

I .

COUNTY OF SONOMA  SPUD POINT MARINA ENTERPRISE FUND  Notes to the Basic Financial Statements  June 30, 2008 

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The Spud Point Marina Enterprise Fund (the Marina) is operated and maintained by the Regional Parks Department of the County of Sonoma. Since the completion of its construction in June 1985, the 244 berths at the Marina have been allocated to 80% commercial fishing vessels and 20% for pleasure crafts. In addition to berth rentals, another major source of revenue is a service dock selling fuel and ice, and a wide variety of oil and engine products. These and several other services and concessions must generate revenue for the Marina in order to repay its debts and to maintain the continuity of its enterprise activities. B. Basis of Presentation The Marina uses proprietary (enterprise) funds to account for its activities. Proprietary funds are used to account for operations that are financed and operated in a manner similar to a private business enterprise where the intent of the governing body is that the cost of providing goods or services to individuals outside the governing body, on a continuing basis, be financed or recovered primarily through user charges. The Marina’s financial statements are a part of the County of Sonoma’s annual financial statements. C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The Marina conforms with accounting principles generally accepted in the United States of America as applicable to governmental entities. Financial statements for the Marina are reported using the economic resources measurement focus and the accrual basis of accounting. All assets and liabilities associated with the operation of the Marina are included on the statement of net assets. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. The Marina has elected under Governmental Accounting Standards Board (GASB) Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting , to apply all applicable GASB pronouncements as well as any applicable pronouncements of the Financial Standards Accounting Board, the Accounting Principals Board or any Accounting Research Bulletins issued on or before November 30, 1989, unless those

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D.

COUNTY OF SONOMA  SPUD POINT MARINA ENTERPRISE FUND  Notes to the Basic Financial Statements  June 30, 2008 

pronouncements conflict with or contradict GASB pronouncements. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards that, along with subsequent GASB pronouncements (Statements and Interpretations), are generally accepted accounting principles in the United States of America. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary fund’s principle ongoing operations. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Assets, Liabilities, and Net Assets 1. Cash and Investments In accordance with GASB Statement No. 31 the Marina reports cash and investments at fair value in the statement of net assets and recognizes the corresponding change in the fair value of investments in the year in which the change occurred. For purposes of the accompanying statement of cash flows, all highly liquid investments with maturity of three months or less when purchased are considered to be cash equivalents. 2. Receivables and Payables a. Accounts Receivable Accounts receivable represent revenues earned but not received or deposited as of June 30, 2008. b. Deferred Revenue Deferred revenue represents the prepaid berthing rent received but not yet earned as of June 30, 2008.

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3. 4.

5. 6.

COUNTY OF SONOMA  SPUD POINT MARINA ENTERPRISE FUND  Notes to the Basic Financial Statements  June 30, 2008 

c. Customer Deposits Payable Customer deposits payable represent berthing and key deposits required at the inception of the lease agreement. Inventory Inventories are valued at cost using the first-in, first-out (FIFO) method. Compensated Absences Vacation and sick leave are recorded at the time the benefits are earned. Accrued vacation is paid at 100% upon retirement or separation from employment. One fourth of accrued sick leave is paid to an employee upon separation or retirement, and is included as a liability. Capital Assets Capital assets are stated at cost or estimated historical cost. Depreciation is computed using the straight-line method over an estimated life of 5 to 50 years. Net Assets Net assets are classified into three components: 1) invested in capital assets, net of related debt, 2) restricted, and 3) unrestricted. These classifications are defined as follows: •  Invested in capital assets – 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 or 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 entity, not restricted for any project or other purpose.

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COUNTY OF SONOMA  SPUD POINT MARINA ENTERPRISE FUND  Notes to the Basic Financial Statements  June 30, 2008 

When both restricted and unrestricted net assets are available, restricted resources are used only after unrestricted resources are depleted. II. DETAILED NOTES A. Cash and Investments The Marina follows the County’s practice of pooling cash and investments of all funds with the County Treasurer, except for funds held by Bank of America and cash on hand used as a revolving change fund. Deposits with the bank are FDIC insured up to $250,000. The amount of cash at June 30 follows: Cash in County Treasury Cash with Bank of America Cash on Hand Total

$ 821,462 * 10,158 950 $ 832,570

* Cash in County Treasury includes $49,009 of restricted cash. Investment in the Sonoma County Treasurer’s Investment Pool The Marina's cash is pooled with the Sonoma County Treasurer, who acts as a disbursing agent for the Marina. The fair value of the Marina’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Marina’s pro-rata share of the fair value provided by the Treasury Pool for the entire Treasury Pool portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on accounting records maintained by the Treasury Pool, which are recorded on an amortized cost basis. Interest earned on investments pooled with the County is allocated quarterly to the appropriate fund based on its respective average daily balance for that quarter. The Treasury Oversight Committee has regulatory oversight for all monies deposited into the Treasury Pool. Investment Guidelines The Marina's pooled cash and investments are invested pursuant to investment policy guidelines established by the County Treasurer and approved by the Board of Supervisors. The objectives of the policy are, in order of priority: safety of capital,

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