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COUNTY OF SAN BENITO STATE OF CALIFORNIA

COMPREHENSIVE ANNUAL FINANCIAL REPORT

For The Fiscal Year Ended June 30, 2014

Prepared and submitted by the Office of the Auditor-Controller Joe Paul Gonzalez

COUNTY OF SAN BENITO

Table of Contents Page INTRODUCTORY SECTION: Letter of Transmittal i‐iii

Organization Chart iv List of Elected and Appointed Officials v

FINANCIAL SECTION:

Independent Auditor's Report 1 Management's Discussion and Analysis 3

BASIC FINANCIAL STATEMENTS: Government‐Wide Financial Statements:

Statement of Net Position 15 Statement of Activities 16

Fund Financial Statements: Governmental Funds:

Balance Sheet ‐ Governmental Funds 17 Reconciliation of the Balance Sheet ‐ Governmental Funds to the Government‐Wide Statement of Net Position 18

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government‐Wide

Statement of Activities 20 Proprietary Funds:

Statement of Net Position 21 Statement of Revenues, Expenses and Changes in Net Position 22 Statement of Cash Flows 23

Fiduciary Funds: Statement of Fiduciary Net Position 24 Statement of Changes in Fiduciary Net Position 25

Notes to the Basic Financial Statements 26

REQUIRED SUPPLEMENT ARY INFORMATION: Public Employee’s Retirement System (PERS) Schedule of Funding Progress 51 Retiree Health Care Plan (OPEB) Schedule of Funding Progress 52 Budgetary Principles 53

Budgetary Comparison Schedule ‐ General Fund 54 Budgetary Comparison Schedule ‐ Human Services Agency 62 Budgetary Comparison Schedule ‐ Road Fund 63 Budgetary Comparison Schedule ‐ Mental Health Fu nd 64

SUPPLEMENTARY INFORMATION: Non‐major Governmental Funds Nonmajor Special Revenue Funds

Combining Balance Sheet 65 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 69

Required Budgetary Comparison Schedules ‐ Individual Special Revenue Funds Fish and Game 73 Victim Witness 74


Table of Contents (Continued) Page FINANCIAL SECTION (Continued):

Emergency Medical Services 75 Migrant Labor Camp 76 Community Services Workforce Development (CSWD) 77 Mosquito Abatement 78 County Service Areas (CSAs) 79 Family Support 80 Public Authority 81 Substance Abuse 82 Public Health 83 Cal Fire 84

Combining Balance Sheet ‐ Nonmajor Governmental Funds 85 Combining Statement of Revenue, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds 86 Required Budgetary Comparison Schedules ‐ Individual Special Revenue Funds

Capital Projects Fund 87 Required Budgetary Comparison Schedules ‐ Proprietary Fund

Solid Waste Fund 88

STATISTICAL SECTION (UNAUDITED): Financial Trends:

Net Position by Component 89 Changes in Net Position 90 Fund Balances of Governmental Funds 92 Changes in Fund Balance ‐ Governmental Funds 93

Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property 94 Principal Property Taxpayers 95 Property Tax Levies and Collections 96 Property Tax Rates as % of Assessed Value 97

Debt Capacity:

Ratios of Net General Bonded Debt Outstanding 98 Ratio of Annual Debt Service Expenditures 99 Ratio of Outstanding Debt by Type 100 Legal Debt Margin 101

Demographic and Economic Information: Demographics and Economic Statistics 102 Construction and Building Activity 103

Operating Information:

Full‐time Equivalent County Government Employees by Department and by Function 104

JOE PAUL GONZALEZ CLERK, AUDITOR & RECORDER

E‐Mail: [email protected]‐benito.ca.us

OFFICE OF THE COUNTY AUDITOR

481 Fourth Street, Second Floor Hollister, California 95023

Telephone: (831) 636‐4090 Facsimile: (831) 635‐9340

COUNTY OF SAN BENITO March 30, 2015 To the Honorable Board of Supervisors and Citizens of San Benito County: I am pleased to present this Fiscal‐Year 2013‐2014 Comprehensive Annual Financial Report (CAFR) for the County of San Benito. This CAFR in intended to present information above and beyond what is required by generally accepted accounting principles or State Law. This CAFR is in compliance with Sections 25250 & 25253 of the Government Code of the State of California. These statutes require all general‐purpose local governments to issue an annual report on the financial position and activities of that government. The report must be presented in conformance with generally accepted accounting principles (GAAP) and must be audited by an independent firm of certified public accountants (CPA). The independent CPA conducts the audit in conformance with generally accepted auditing standards (GAAS) and generally accepted government auditing standards (GAGAS). The financial statements contained in this CAFR meet these requirements. This report contains management’s representations and is prepared by the Office of the County Auditor. Consequently, management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive internal control framework that is established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. The County of San Benito’s financial statements have been audited by Grace and Associates, a firm of licensed certified public accountants, who have issued an unmodified (“clean”) opinion on the County’s financial statements for the fiscal year ended June 30, 2014. The auditors have concluded, based on their audit that the financial statements combined with the accompanying Notes, present fairly, in all material respects, the financial condition of San Benito County as of June 30, 2014. The independent auditor’s report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the County of San Benito includes the broader, federally mandated “single audit” designed to meet the special needs of federal grantor agencies. The standards governing single audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the County of San Benito’s separately issued Single Audit Report.

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mailto:[email protected]

mailto:[email protected]

Management is required by the Government Accounting Standards Board to provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A) in conjunction with financial statement reporting. This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The County of San Benito’s MD&A can be found immediately following the report of the independent auditors. The CAFR is organized into three sections:

The Introductory Section is intended to familiarize the reader with the organizational structure of the County, the nature and scope of the services it provides, and the specifics of its legal operating environment.

The Financial Section includes the independent auditor’s report on the basic financial

statements, MD&A, audited basic financial statements, note disclosures and supporting statements, and schedules necessary to provide readers with a comprehensive understanding of the county’s financial activities of the past fiscal year.

The Statistical Section provides the reader with additional historic perspective, context, and

detail to assist in using the information in the financial statements. It provides information in five categories: Financial trends; revenue capacity; debt capacity; demographic and economic information; and operating information.

PROFILE OF THE COUNTY OF SAN BENITO Overview of the County San Benito County is located in the northwestern part of the State of California and is located approximately 85 miles south of San Francisco. The County of San Benito currently occupies over 1,396 square miles and serves a population of 57,997. Open space and agricultural land account for a great majority of this area. San Benito County was formed in 1874 from a portion of Monterey County. Thirteen years later, the state legislature expanded the county to include land in Fresno and Merced counties. Territorially, it has remained unchanged since 1887.

The western and southern boundary of San Benito County is established by a coastal range of mountains known as the Gabilans. To the east lie the Diablo Mountain range and Panoche Valley, separating San Benito County from Merced and Fresno Counties. To the north, the Pajaro River creates the Santa Clara and Santa Cruz County boundaries. San Benito County is the valley that stretches between these geographical features and reaches nearly eighty miles south to the Mustang Ridge. These lands are rich in Mexican and Spanish heritage. The fertile soil of the San Juan Valley portion of San Benito County is known for the colorful fields of row crops and prolific orchards.

San Benito County government is comprised of ten publicly elected officials including a five‐member Board of Supervisors, the Clerk‐Auditor‐Recorder, the Assessor, the District Attorney, the Sheriff‐Coroner and the Treasurer‐Tax Collector‐Public Administrator. A County Administrative Officer (CAO) is appointed by the Board of Supervisors and functions as the Chief Executive. Averaging 395 full time equivalent employees, the County government provides a full range of public services including public safety, roads and facilities, social services, administrative services, health services, sanitation, library, parks and recreational facilities and a variety of other general governmental services. Every resident of the County, directly or indirectly, benefits from these services. Most services performed by the County are provided for all residents, regardless of whether those residents live in cities or unincorporated areas.

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In accordance with the County Budget Act in the California Government Code, the County adopts a finalbudget each year. This annual budget serves as the foundation for the County's financial planning andcontrol. The County maintains budgetary controls to assure compliance with legal provisions embodiedin the annual appropriated budget approved by the Board. If appropriations are not sufficient, Board ofSupervisors-approved appropriation transfers are required before commitments or expenditures arepermitted. Unencumbered annual appropriations lapse at year-end.

FACTORS AFFECTING FINANCIAL CONDITION

Local Economy

The County of San Benito's economy has continued to see positive signs of economic recovery after theglobal recession in the real estate and construction industry and the financial market meltdown. Homeprices have been significantly affected throughout the County. The Net Assessed Value of taxableproperty along with the total taxes levied, are still below the FY 2007 levels. Retail sales County-widehave been declining for two years. The recession in San Benito County continues to send mixed signalsof improvement in 2015. The unemployment rate improved from 13.9% in 2012 to 11.1% in 2013, but ishigher that the state's average of 7.3%. There was an increase in personal income of 2% in the sameperiod, giving hope that the worst is over and the economy is on the upswing. All of these factors willimpact the County's revenue and tax base.

Acknowledgments

The preparation of this report on a timely basis could not be accomplished without the efficient anddedicated services of the Accounting Division of the Office of the Auditor. I would like to express myappreciation to all members of the Auditor's Office and County departments who assisted andcontributed to its preparation. I would also like to thank the members of the Board of Supervisors andthe County Administrator for their interest and support, and for their leadership, planning andconducting the financial operations of the County in a responsible and progressive manner. I also thankthe accounting firm of Grace and Associates for their assistance and guidance in the preparation of thisreport.

Respectfully submitted,

911J-v~~Joe Paul GonzalezClerk, Auditor and Recorder

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San Benito County Elected and Appointed Officials

Elected Officials

Board of Supervisors:

Margie Barrios District 1

Anthony Botelho District 2

Robert Rivas District 3

Jerry Muenzer, Chair District 4

Jaime De La Cruz District 5

Assessor Tom Slavich

Clerk, Auditor, Recorder Joe Paul Gonzalez

District Attorney Candice Hooper

Sheriff - Coroner Darren Thompson

Treasurer, Tax Collector, Public Administrator Mary Lou Andrade

Appointed Officials

Agricultural Commissioner – Sealer of Weights & Measures Ron Ross

Chief Probation Officer (Interim) Ted Baraan

County Administrative Officer Ray Espinosa

County Counsel Matthew Granger

County Health Officer Vacant

Director (Interim) - Child Support Services Jamie Murray

Director - County Library Nora Conte

Interim Director - Health & Human Services Agency James Rydingsword

Director - Integrated Waste Management Mandy Rose

Director - Mental Health Services Alan Yamamoto

Director (Interim)- Planning & Building Byron Turner

Director - U.C. Cooperative Ext. Service Lynn Schmitt-McQuitty

Public Works Administrator Vacant

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GRACE & ASSOCIATESCertified Public Accountants and Consultants

INDEPENDENT AUDITOR'S REPORT

To the Board of SupervisorsCounty of San Benito

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activity,the aggregate discretely presented component units, each major fund, and the aggregate remaining fundinformation of County of San Benito, State of California, as of and for the year ended June 30, 2014, and therelated notes to the financial statements, which collectively comprise the County's basic financial statements aslisted in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordancewith accounting principles generally accepted in the United States of America; this includes the design,implementation, and maintenance of internal control relevant to the preparation and fair presentation of financialstatements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America and the standardsapplicable to financial audits contained in Government AUditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express nosuch opinion. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of significant accounting estimates made by management, as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respectivefinancial position of the governmental activities, the business-type activity, the aggregate discretely presentedcomponent units, each major fund, and the aggregate remaining fund information of the County of San Benito,State of California, as of June 30, 2014, and the respective changes in financial position, and, where applicable,cash flows thereof for the year then ended in accordance with accounting principles generally accepted in theUnited States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management'sdiscussion and analysis and budgetary comparison information on pages 3-14 and 53-89 be presented tosupplement the basic financial statements. Such information, although not a part of the basic financial statements,is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, or historical context.

1341 First Street. Hollister, California 95023 • Fax (831) 637-6637 / Phone (831) 637-7408

2600 Garden Road, Suite 320 • Monterey, California 93940 • (831) 373-4957

We have applied certain limited procedures to the required supplementary information in accordance with auditingstandards generally accepted in the United States of America, which consisted of inquiries of management aboutthe methods of preparing the information and comparing the information for consistency with management'sresponses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit ofthe basic financial statements. We do not express an opinion or provide any assurance on the informationbecause the limited procedures do not provide us with sufficient evidence to express an opinion or provide anyassurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprisethe County of San Benito, State of California's basic financial statements. The introductory section, combining andindividual nonmajor fund financial statements, and statistical section, are presented for purposes of additionalanalysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and werederived from and relate directly to the underlying accounting and other records used to prepare the basic financialstatements. Such information has been subjected to the auditing procedures applied in the audit of the basicfinancial statements and certain additional procedures, including comparing and reconciling such informationdirectly to the underlying accounting and other records used to prepare the basic financial statements or to thebasic financial statements themselves, and other additional procedures in accordance with auditing standardsgenerally accepted in the United States of America. In our opinion, the combining and individual nonmajor fundfinancial statements and the schedule of expenditures of federal awards are fairly stated in all material respects inrelation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit ofthe basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government AUditing Standards

In accordance with Government AUditing Standards, we have also issued our report dated March 30, 2015, onour consideration of the County of San Benito, State of California's internal control over financial reporting and onour tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and othermatters. The purpose of that report is to describe the scope of our testing of internal control over financialreporting and compliance and the results of that testing, and not to provide an opinion on internal control overfinancial reporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering County of San Benito, State of California's internal control overfinancial reporting and compliance .

./~~ ~/6P~5Hollister, CaliforniaMarch 30, 2015

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COUNTY OF SAN BENITO MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2014 As management of the County of San Benito, we offer readers of the County’s financial statements this narrative overview and analysis of the financial activities of the County of San Benito for the fiscal year ended June 30, 2014. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal letter at the front of this report and the County’s financial statements which follow this section. FINANCIAL HIGHLIGHTS

The assets of the County exceeded its liabilities plus deferred inflows of resources at the close of the fiscal year by $132,251,945 (net position). Of this total, $37,184,682 represented unrestricted net position, which will be available to meet the County’s ongoing obligations to citizens and creditors. The remaining $95,067,263 represents the County’s net investment in capital assets.

The County’s total net position increased by $5,846,248 during the current fiscal year. The

increase in net position represents the degree to which revenues exceeded expenses.

At the close of the current fiscal year, the County’s governmental funds reported combined fund balances of $38,406,091, an increase of $1,809,778 in comparison with the prior year. Approximately 40% of this amount ($15,346,214) is available for spending at the government’s discretion (unassigned fund balance).

At the end of the current fiscal year, unrestricted fund balance (the total of the committed,

assigned, and unassigned components of fund balance) for the general fund was $16,342,158, or approximately 64% of total general fund expenditures.

Tax revenue increased by 5.7% compared to the previous year.

Landfill total net position increased by $461 thousand to $5.7 million.

OVERVIEW OF THE FINANCIAL STATEMENTS The discussion and analysis provided here are intended to serve as an introduction to the County of San Benito’s basic financial statements. The County of San Benito’s basic financial statements consist of three components: 1) government‐wide financial statements, 2) fund financial statements, and 3) the notes to the financial statements. This report also includes supplementary information intended to furnish additional detail to support 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. The Statement of Net Position presents information on all of the County’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating.

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OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) The Statement of Activities presents information showing how the County of San Benito’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government‐wide financial statements distinguish functions of the County of San Benito 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 cost through user fees and charges (business‐type activities). The governmental activities of the County of San Benito include general government, public protection, public ways and facilities, health and sanitation, public assistance, education, and recreation and cultural services. The county has one business‐type activity, the John Smith Landfill (solid waste fund). Component units are included in the basic financial statements and consist of legally separate entities for which the County is financially accountable, and have the same, or substantially the same board as the County or provides services entirely to the County. The County Service Areas (CSA’s) are an example of these. Financial data of the CSA’s are combined with the presentation of the primary government’s financial data and are therefore referred to as a “blended” component unit (see Note 1 for more details). On the other hand, a “discretely presented” component unit is one that is presented separately in the financial statements to emphasize its independence from the primary government. The County of San Benito has one discretely presented component unit, First 5 San Benito. The government‐wide financial statements can be found on pages 15 – 16 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that are 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 are separated 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 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 assessing 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 Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and government‐wide statements. The County of San Benito maintains 31 individual governmental funds. For financial reporting purposes, information is presented separately for major funds: the General Fund, the Human Services Agency

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OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) Fund, the Road Fund, and the Mental Health Fund. 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 these four funds. Information for the remaining 27 governmental funds is combined into the presentation of Other Governmental Funds. Individual fund data for each of these non‐major governmental funds is provided in the form of combining statements located under the Other Supplementary Information section in this report, starting on page 65. The governmental funds financial statements can be found on pages 17 – 20 of this report. Proprietary funds include Enterprise Funds and Internal Service Funds. Enterprise funds report the same functions presented as the business‐type activities in the government‐wide financial statements. The County has one enterprise fund used to account for its Landfill‐Solid Waste Operations. Internal service funds are used to accumulate and allocate costs internally among the County’s various functions. As these services are primarily a benefit to government rather than business‐type functions, they would be included in the government‐wide financial statements. The County does not currently use any Internal Service funds. The proprietary fund financial statements can be found on pages 21 – 23 of this report. Fiduciary funds are used to account for resources that are held for the benefit of third parties outside of the County. Fiduciary funds are not available to support the County’s own programs. The County uses an Investment Trust Funds statement to detail the additions and deductions of net assets in the form of investment income, and receipt and withdrawals by depositors. As fiduciary funds are not County funds, detailed analysis of them will not be included in this discussion. The basic fiduciary fund financial statements can be found on pages 24 – 25 of this report. Notes to the Basic Financial Statements. The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government‐wide and fund financial statements. The notes to the financial statements can be found starting on page 26 of this report. 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 pension and other post employment benefits (OPEB) to its employees. Required supplementary information can be found beginning on page 51 of this report. This section also includes budgetary comparison schedules which compare the budgeted amounts for the fiscal year with the actual activity for the County’s Major Governmental Funds ‐ the General Fund, the Human Services Agency Fund, the Road Fund and the Mental Health Fund. This information shows how well the County stayed within the budget constraints it set for itself. The notes to the required supplementary information discuss the County’s budgetary basis of accounting and the policies and regulations it adheres to.

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OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) Combining and Individual Fund Statements and Schedules The financial statements of the County’s non‐major funds are represented here. It includes all other Special Revenue Funds and the Capital Projects Fund and can be found beginning on page 65 of this report. Additional budget‐to‐actual comparison schedules are presented for all individual special revenue funds for which annual budgets are legally adopted, along with the budget‐to‐actual comparison for the Capital Projects Fund.

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GOVERNMENT‐WIDE OVERALL FINANCIAL ANALYSIS The net position over time, may serve as a useful indicator of a government’s financial position. In the case of the County, assets exceeded liabilities by $127 million at the close of the most recent fiscal year.

County of San Benito Condensed Statement of Net Position

(in thousands)

Governmental Activities Business‐type Activities Total Percent 2014 2013 2014 2013 2014 2013 Change Assets: Current and other assets $ 57,210 $ 49,593 $ 9,848 $ 9,246 $ 67,058 $ 58,839 14% Capital assets, net 94,120 93,205 947 907 95,067 94,112 1%

Total assets 151,330 142,798 10,795 10,153 162,125 152,951 6% Liabilities: Current and other liabilities 19,684 16,559 68 93 19,752 16,652 19% Long‐term liabilities 5,054 5,032 5,067 4,861 10,121 9,893 2%

Total liabilities 24,738 21,591 5,135 4,954 29,873 26,545 13% Net Position: Net investment in capital assets 94,120 92,067 947 907 95,067 92,974 2% Unrestricted 32,472 29,140 4,713 4,292 37,185 33,432 11%

Total net position $ 126,592 $ 121,207 $ 5,660 $ 5,199 $ 132,252 $ 126,406 5% By far, the largest portion of the County’s net position (72%) reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The County uses these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending. Although the County’s investment in capital assets is reported net of related debt, it should be noted that the resources used to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Total government‐wide (governmental and business‐type activities) net position increased during the current year over the prior fiscal year. Total assets increased by $9.2 million, a positive change of 6%, and liabilities increased by $3.3 million, an increase of 13%. Total net position increased by $5.8 million, or an increase of 5% over last year. Governmental Activities. During the current fiscal year, net position for governmental activities increased $5.4 million from the prior fiscal year for an ending balance of $126.6 million. The increase was mainly attributed to the overall reduction in spending to bring it in line with the associated program revenues, which remained relatively level from previous year. Business‐type Activities: The business‐type activities are represented by the County’s landfill and total assets increased by $642 thousand during the year. Total liabilities increased by $181 thousand. The long‐term liabilities of $5.1 million are for the eventual closure and post‐closure cost of the Landfill when it reaches capacity. Total net position increased $461 thousand, to $5.7 million.

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GOVERNMENT‐WIDE OVERALL FINANCIAL ANALYSIS (Continued)

Changes in Net Position For the Fiscal Year Ended June 30, 2014

(in thousands) Governmental Activities Business‐type Activities Total Percent 2014 2013 2014 2013 2014 2013 Change Revenues: Program revenues: Charges for services $ 14,430 $ 10,005 $ 1,650 $ 1,300 $ 16,080 $ 11,305 42% Operating grants and contributions 34,169 36,863 – – 34,169 36,863 ‐7% Capital grants and contributions 5,381 3,448 – – 5,381 3,448 56%

General revenues: Property taxes 12,452 11,987 – – 12,452 11,987 4% Other taxes 2,643 2,300 – – 2,643 2,300 15% Interest and investment earnings 186 204 41 57 227 261 ‐13% Other revenue 551 450 – – 551 450 22%

Total revenues 69,812 65,257 1,691 1,357 71,503 66,614 7%

Expenses: General government 2,873 3,683 – – 2,873 3,683 ‐22% Public protection 24,900 25,517 – – 24,900 25,517 ‐2% Public ways and facilities 6,325 6,655 – – 6,325 6,655 ‐5% Health and sanitation 9,514 9,927 – – 9,514 9,927 ‐4% Public assistance 19,624 16,678 – – 19,624 16,678 18% Education 1,006 820 – – 1,006 820 23% Recreation and cultural services 182 179 – – 182 179 2% Interest on long‐term debt 3 5 – – 3 5 ‐40% Solid waste – – 1,230 1,208 1,230 1,208 2%

Total expenses 64,427 63,464 1,230 1,208 65,657 64,672 2%

Change in net position 5,385 1,793 461 149 5,846 1,942 201%

Net position, beginning 121,207 119,414 5,199 5,050 126,406 124,464 2%

Net position, ending $ 126,592 $ 121,207 $ 5,660 $ 5,199 $ 132,252 $ 126,406 5% Changes in Net Position. Total governmental activities revenue showed an increase of $4.5 million for the year. Program revenue, which includes charges for services (service charges, fines and fees) and grants, increased from last year by $4.0 million, to $54.0 million. General revenues increased $891 thousand to $15.8 million. Expenditures for the fiscal year were $64.4 million, an increase of $963 thousand from last year. The change in net position was positive this year at $5.4 million, compared to an increase of $1.8 million in the previous year, with the ending net position totaling $126.6 million. Business‐type activities (Landfill) had total revenue of $1.7 million, an increase of $334 thousand over the previous year. Total expenditures were $1.2 million, an increase of $22 thousand over last year. The change in net position was $461 thousand compared with $149 thousand for the prior year. Ending net position totaled $5.7 million.

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GOVERNMENT‐WIDE OVERALL FINANCIAL ANALYSIS (Continued) FINANCIAL ANALYSIS OF COUNTY’S FUNDS As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with budgetary and legal requirements. Governmental Funds: 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. As of the end of the fiscal year, the County’s governmental funds reported total fund balances of $38.4 million, an increase of $1.8 million from the prior year. Approximately 40% ($15 million) constitutes the Unassigned fund balance, which represents the General Fund’s resources that are not classified in the other categories and are considered available for future needs. The Restricted funds of $6.7 million or 17.4% are funds with constraints placed on their use by those external to the County. The Assigned funds of $16.1 million or 42.0% are earmarked to meet the County’s current and future needs. These funds are held in special revenue funds to be used for the purpose of those funds (see the Fund Balance section of Note 1 ‐ Summary of Significant Accounting Policies). The Nonspendable balance is approximately $230 thousand or .6% of total fund balance and is made up of inventories and prepaid expenditures which cannot be spent because of their form. The general government functions are included in the General Fund, Special Revenue Funds and the Capital Projects Fund. Included in these funds are the special districts governed by the County Board of Supervisors. The focus of the County’s governmental funds is to provide information on near‐term inflows, outflows, and balances of resources. Such information is useful in assessing the County’s financing requirements. The primary focus is to assess and analyze comparable activity between the current and prior fiscal year. The major activities and results in each category are highlighted. All other non‐major governmental funds have been combined into a single Other Governmental Funds column. General Fund The General Fund is the chief operating fund of the County. All County activities not included in a separate fund are included in the General Fund. At June 30, 2014, unassigned fund balance totaled $16.3 million, while the total fund balance amounted to $16.5 million. As measures of the general fund’s liquidity, it is useful to note that the unassigned fund balance represents 64% of the total fund expenditures. Expenditures decreased 5.0% ($1.3 million) over last year. Total revenues decreased .13% ($36 thousand) from the prior fiscal year. Human Services Agency Fund At June 30, 2014, the restricted fund balance totaled $2.4 million, a decrease of 45.5% over the prior year, with expenditures increasing $1.1 million and revenues increasing $1.3 million. Road Fund At June 30, 2014, the assigned fund balance totaled $1.5 million, a decrease of $742 thousand over the prior year. Revenues decreased by $230 thousand while expenditures decreased $494 thousand over the previous year.

9

FINANCIAL ANALYSIS OF COUNTY’S FUNDS (Continued) Mental Health Fund At June 30, 2014, the restricted fund balance totaled $1.7 million, a decrease of $24 thousand over the prior year. Revenues increased by $711 thousand while expenditures increased $264 thousand over the previous year. Other Governmental Funds The sum of the restricted, assigned and unassigned fund balances of the remaining governmental funds increased $1.4 million, to a balance of $16.2 million. Included in this sum are all of the County Special Revenue funds and the County’s Capital Projects Fund. Proprietary Funds The County’s proprietary Landfill‐Solid Waste Fund had a 26.9% increase in operating revenues and a 1.9% increase in operating expenses, for a total net operation gain of $420 thousand. Revenues – The following table presents the revenues by category from various sources as well as the amounts and changes from the prior year in the governmental funds.

Revenues Classified by Source (in thousands)

FY 2014 FY 2013 Change Amount % of Total Amount % of Total Amount % of Change Taxes $ 15,686 23.1% $ 15,208 23.3% $ 478 3.1% Licenses and permits 989 1.5% 874 1.4% 115 13.1% Aid from other governments 40,239 59.4% 39,942 61.2% 297 0.7% Use of money or property 362 0.5% 399 0.6% (37) ‐9.3% Fines, forfeit, and penalties 1,014 1.5% 1,315 2.0% (301) ‐22.9% Charges for services 8,761 13.0% 6,797 10.4% 1,964 28.9% Miscellaneous revenue 680 1.0% 722 1.1% (42) ‐5.8% Total $ 67,731 100.0% $ 65,257 100.0% $ 2,474 3.8% Tax revenues account for approximately 23% of all revenues received by the County. This year’s total was $15.7 million, up $478 thousand from last year’s figure. License and permit revenues were $989 thousand compared to $874 thousand the previous year. Aid from other governments and agencies, which represents approximately 59% of the County’s revenue, increased by $297 thousand from the prior year, on total revenue of $40.2 million. Revenues from the use of money or property, including investment earnings, ended the year at $362 thousand, compared to the prior year of $399 thousand. Fines, forfeitures and penalties revenue decreased 22.9%, or $301 thousand from the previous year. Charges for services total revenue increased 28.9% or $2.0 million from the previous year.

10

FINANCIAL ANALYSIS OF COUNTY’S FUNDS (Continued) Expenditures – The following table presents expenditures by function compared to prior year’s amounts in the governmental funds.

Expenditures by Function (in thousands)

FY 2014 FY 2013 Change Amount % of Total Amount % of Total Amount % of Change General government $ 2,863 4.3% $ 3,751 5.6% $ (888) ‐23.7% Public protection 24,274 36.8% 25,674 38.4% (1,400) ‐5.5% Public ways and facilities 2,860 4.3% 4,368 6.5% (1,508) ‐34.5% Health and sanitation 9,483 14.4% 9,931 14.9% (448) ‐4.5% Public assistance 19,533 29.7% 18,440 27.6% 1,093 5.9% Education 985 1.5% 813 1.2% 172 21.2% Recreation and cultural services 125 0.2% 582 0.9% (457) ‐78.5% Capital outlay 5,434 8.2% 2,895 4.3% 2,539 87.7% Debt service 364 0.6% 366 0.6% (2) 0.5% Total $ 65,921 100.0% $ 66,820 100.0% $ (899) ‐1.3% General government expenditures decreased by $888 thousand over last year. Public protection expenditures decreased by $1.4 million over the previous fiscal year. Public ways and facilities expenditures were $2.9 million, a 34.5% decrease from the prior year Health and sanitation decreased from last year’s totals by $448 thousand. Public assistance expenditures increased by $1.1 million, an increase of 5.9% over the previous year. Education expenditures increased $172 thousand, reflecting an increase of 21.2% over the previous year. Recreation and cultural services consisting of County parks and recreation programs, had a decrease of $457 thousand. The second year’s payment was paid to the John Smith landfill (Landfill –Solid Waste Fund) against a loan, made up of $361 thousand in principal and $3 thousand in interest. Proprietary Funds The County has one enterprise‐type proprietary fund, the John Smith landfill (Landfill‐Solid Waste Fund). Total revenue for the Landfill‐Solid Waste Fund was $1.7 million, approximately $350 thousand more than last year. The Landfill‐Solid Waste Fund had $1.3 million in revenue from charges for services, a 35.9% increase over the previous year of $959 thousand. Licenses and permits were $347 thousand, an increase of $6 thousand, or 1.7%. Interest revenue amounted to $41 thousand, a decrease from last year of $16 thousand. Expenditures for the year totaled $1.2 million, an increase of $22 thousand. The Landfill’s change in net position was an increase of $461 thousand to an ending balance of $5.7 million.

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V. BUDGETARY HIGHLIGHTS Each year the County adopts an annual budget and monitors it closely during the fiscal year to ensure that the budgeted figures are close to the amounts actually expended and received. Emphasis is placed on the County’s major funds: General Fund, Human Services Agency Fund, Road Fund, Mental Health Fund, Other Governmental Funds as well as the Landfill Fund. The General Fund is the largest of the major funds, and also the chief operating fund for the County. The budget included $33.3 million in General Fund revenues for the fiscal year. Actual revenue for the year was $29.2 million. General fund tax revenues were budgeted at $13.3 million. The total of taxes received was $14.3 million. Revenue from licenses and permits was budgeted at $841 thousand with actual revenue received of $1.0 million. Aid from other governments was budgeted at $5.9 million with the actual revenue received at $6.4 million. Use of money was budgeted at $255 thousand and $225 thousand was received. Fines and penalties were budgeted for $964 thousand with actual revenues of $997 thousand. Charges for services were budgeted at $5.2 million and the actual revenue came in at $4.2 million. Miscellaneous revenue was initially budgeted at $6.8 million with actual revenue of $2.1 million. Budgeted expenditures for the year were $34.6 million while the actual expenditures totaled $25.9 million. General government was budgeted at $9.6 million and actual expenditures were $3.4 million. Public protection was budgeted at $22.1 million and had expenditures of $20.7 million. Public assistance was budgeted for $289 thousand and actual expenditures were $352 thousand. Education had budgeted $1.1 million and spent $985 thousand. Parks and recreation had an ending budget of $188 thousand and actual expenditures were $125 thousand. Debt service budgeted $370 thousand and spent $364 thousand. Actual transfers in totaled $1.7 million. Transfers out totaled $545 thousand for the year, leaving the ending General Fund Balance of $16.5 million, an increase of $3.3 million. The Human Services Agency Fund (H.S.A) received $16 million in revenue for the year, $206 thousand more than budgeted. The actual expenditures were $15.5 million and budgeted expenditures were $17.5 million. An additional $165 thousand was received through transfers from the General Fund for support. The ending fund balance for H.S.A. was $2.4 million, a decrease of $2.0 million from the previous year’s ending balance. Road Fund revenue was budgeted at $45.2 million while actual revenue was only $4.5 million and transfers in were budgeted and actual transfers in were $ –0–. Expenditures were budgeted at $47.3 million while actual expenditures were $5.3 million. There were fewer projects worked on than anticipated and therefore, less revenue reimbursement from the State or other sources. The ending fund balance for the Road fund was $1.58 million, reflecting the decrease of $790 thousand from the previous year’s ending balance. The Mental Health Fund budgeted revenues of $7.69 million for fiscal year 2013‐14. Actual activity for the year included revenue received of $5.8 million. Budgeted expenditures were $7.69 million and actual expenditures were $5.7 million. The actual net change in fund balance was a decrease of $24 thousand, with an ending fund balance of $1.7 million for the year. Other Governmental Funds include a capital projects fund and twenty‐six special revenue funds that finance specific services for the benefit of County constituents. Among those are the impact fee funds, equipment, miscellaneous income, as well as various protective and health services. Individual fund budget to actual information is included in the Supplementary Information section of the financial statements which begins on page 73.

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V. BUDGETARY HIGHLIGHTS (Continued) Landfill-Solid Waste Fund received $1.7 million in total revenues, had $1.2 million of expenditures, ending with $420 thousand of Net Operating Income for an ending fund balance of $5.7 million. The Landfill Fund includes capital outlay in their appropriations and recording of expenditures for budgetary control and capitalizes these at year end for financial reporting purposes. VI. CAPITAL ASSETS AND DEBT ADMINISTRATION A. Capital Assets Valuation has been established for the County’s infrastructure, property improvements and equipment, and a schedule of depreciation has been prepared for each capital asset class. The County Landfill capital assets are discussed separately in this report. Assets classed as infrastructure include roads, bridges, bike paths and culverts- storm drains. Roads are depreciated at 35 years for larger, major traffic carrying streets and 50 years for minor, less utilized streets. Bridges are depreciated at 50 years, as are bike paths. Culverts and storm drains are depreciated at 30 years for metal culverts and 50 years for concrete. All infrastructure capital assets are depreciated using the straight line method and the county uses the “Basic Approach” as defined by GASB No. 34 for infrastructure reporting. Assets classed as property improvements include all improvements to land or existing structures owned by the County. Land is not depreciated by the County. Improvements that are full-scale buildings are depreciated for 30 years. All other improvements are depreciated for 15 years. All improvements are depreciated using the straight line method. Assets classed as equipment are either individual or grouped assets that have a cost of $3 thousand or more. These assets are grouped as vehicles, computers, or furniture and equipment on the schedules. All assets in this class are depreciated at 3 years using the straight line method. The original cost of County infrastructure is $168 million with accumulated depreciation of $101 million, including the addition of $3.2 million of depreciation for the year. The net asset value, or unrecovered cost of infrastructure, is $67 million. Original cost of property improvements is $22 million with no additions for the year. Depreciation for the year was $809 thousand, bringing total accumulated depreciation to $11.2 million. Unrecovered cost (net asset value) at the end of the year is $11 million. Capital asset equipment added $304 thousand, bringing the total original cost to $14.2 million. Accumulated depreciation came to a total of $13.6 million, including $600 thousand in depreciation for the year. The ending net asset value is $600 thousand. B. Long-Term Debt The County’s compensated absences, the amount of time employees have earned and retained for vacation and comp time that is payable to them at some time in the future, was a total of $2.9 million. This is a decrease of $219 thousand from the previous year for all employees. As employees sever their relations with County employment either by retirement or termination, all or a portion of their accumulated compensated absences become due and payable to them.

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VI. CAPITAL ASSETS AND DEBT ADMINISTRATION (Continued) A State audit in FY 2006‐07 covering a ten year period uncovered a miscalculation of the growth factor to ERAF (Educational Revenue Augmentation Fund) giving an incorrect carry forward to the AB 8 system resulting in an under‐allocation of $4.6 million, with the county’s portion being $2.9 million. The County has asked the State to provide technical assistance in this matter and the State has agreed to do so. The county is currently requesting forgiveness from the state legislature for this amount. VII. ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES

The General Fund’s 2014 budget, the County’s largest fund that supports basic governmental functions, has projected revenue from taxes to grow at a modest increase of only 2.8% over the prior year actual revenues. The General Fund revenue from taxes represents roughly 52% of the discretionary revenue of the County, with a reduction in other remaining revenue sources, representing a total overall decrease of the General Fund’s discretionary revenue of $2.27 million, or a decrease of 8%. VIII. REQUEST FOR INFORMATION This financial report is designed to provide a general overview of the County’s finances and assist anyone interested in the County’s financial condition. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the San Benito County Auditor, 481 Fourth Street, 2nd Floor, Hollister, CA 95023.

14

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS


Statement of Net PositionJune 30, 2014

Primary Government Component UnitsGovernmental Business‐ type First Five of

Assets Activities Activities Total San BenitoCash and investments:

Held in County treasury 43,171,686$ 8,472,073$ 51,643,759$ 1,044,702$ Other bank accounts 9,075,357 126,650 9,202,007 ‐ Imprest cash 4,643 ‐ 4,643 ‐ Accounts receivable 4,725,874 1,249,174 5,975,048 ‐ Due from other government agencies ‐ ‐ ‐ 211,613 Inventories and other assets 232,686 ‐ 232,686 ‐ Capital Assets: Nondepreciable 6,722,285 313,079 7,035,364 ‐ Depreciable, net 87,397,678 634,221 88,031,899 ‐

Total Assets 151,330,209 10,795,197 162,125,406 1,256,315 Liabilities Accounts payable and accrued liabilities 5,156,537 63,895 5,220,432 140,457 Due to other government agencies 2,913,221 ‐ 2,913,221 ‐ Deposits with others 626,669 ‐ 626,669 ‐ Unearned revenue 10,328,241 ‐ 10,328,241 92,200 Long‐ Term Liabilities: Portion due or payable within one year: Interfund Payable 376,200 ‐ 376,200 ‐ Compensated absences 283,239 3,915 287,154 ‐ Portion due or payable after one year: Interfund Payable 384,835 ‐ 384,835 ‐ Compensated absences 2,549,149 35,239 2,584,388 ‐ Liability for unpaid claims 2,119,863 ‐ 2,119,863 ‐ Liability for closure and postclosure costs ‐ 5,032,458 5,032,458 ‐

Total Liabilities 24,737,954 5,135,507 29,873,461 232,657 Net Position Invested in capital assets, net of related deb 94,119,963 947,300 95,067,263 ‐ Unrestricted 32,472,292 4,712,390 37,184,682 1,023,658

Total Net Position 126,592,255$ 5,659,690$ 132,251,945$ 1,023,658$

The accompanying notes are an integral part of these financial statements.

15


Statement of ActivitiesFor the Year Ended June 30, 2014

Program RevenuesComponent

Fees, Fines and Operating Capital Primary Government UnitsCharges for Grants and Grants and Governmental Business‐Type First Five of

Functions/ Programs Expenses Services Contributions Contributions Activities Activities Total San BenitoPrimary Government: Governmental Activities: General government 2,872,536$ 1,135,198$ 41,786$ ‐$ (1,695,552)$ ‐$ (1,695,552)$ ‐$ Public protection 24,900,347 8,593,707 4,818,657 795,052 (10,692,931) ‐ (10,692,931) ‐ Public ways and facilities 6,324,848 3,800,870 1,594,133 4,383,431 3,453,586 ‐ 3,453,586 ‐ Health and sanitation 9,513,485 590,513 9,098,669 ‐ 175,697 ‐ 175,697 ‐ Public assistance 19,623,809 88,761 18,529,814 202,582 (802,652) ‐ (802,652) ‐ Education 1,006,320 42,402 73,157 ‐ (890,761) ‐ (890,761) ‐ Recreation and culture 182,163 178,408 13,064 ‐ 9,309 ‐ 9,309 ‐ Debt Service: Interest 2,924 ‐ ‐ ‐ (2,924) ‐ (2,924) ‐

Total Governmental Activities 64,426,432 14,429,859 34,169,280 5,381,065 (10,446,228) ‐ (10,446,228) ‐

Business‐ type Activities: Solid Waste 1,230,478 1,650,139 ‐ ‐ ‐ 419,661 419,661

Total Primary Government 65,656,910 16,079,998 34,169,280 5,381,065 (10,446,228) 419,661 (10,026,567)

Component Units: First Five of San Benito 657,048 ‐ 690,672 ‐ Total Component Units 657,048 ‐ 690,672 ‐ 33,624

General Revenues: Taxes: Property taxes 12,451,983 ‐ 12,451,983 ‐ Sales and use taxes 1,390,428 ‐ 1,390,428 ‐ Franchise taxes 488,469 ‐ 488,469 ‐ Other taxes 764,008 ‐ 764,008 ‐ Unrestricted interest and investment earnings 185,960 41,400 227,360 4,899 Miscellaneous 550,567 ‐ 550,567 27,577 Total General Revenues 15,831,415 41,400 15,872,815 32,476

Change in Net Position 5,385,187 461,061 5,846,248 66,100

Net position ‐ July 1 121,207,068 5,198,629 126,405,697 957,558

Net position ‐ June 30 126,592,255$ 5,659,690$ 132,251,945$ 1,023,658$

Net (Expense) Revenue and Changes in Net Position


16

BASIC FINANCIAL STATEMENTS

FUND FINANCIAL STATEMENTS


Balance SheetGovernmental Funds

June 30, 2014

Human Other Services Mental Governmental

General Agency Road Health Funds Total

Assets

Cash and investments:

Held in County treasury 14,627,008$ 2,815,661$ 1,581,477$ 6,994,899$ 17,152,641$ 43,171,686$ Other bank accounts 4,238,040 ‐ ‐ ‐ 4,837,317 9,075,357 Imprest cash 1,193 ‐ ‐ 3,450 ‐ 4,643 Receivables 609,604 17,200 1,986,835 1,024,769 1,087,466 4,725,874 Due from other funds 3,350,540 ‐ ‐ ‐ ‐ 3,350,540 Inventories and prepaid items 166,047 995 63,644 ‐ 2,000 232,686

Total Assets 22,992,432 2,833,856 3,631,956 8,023,118 23,079,424 60,560,786

Liabilities

Accounts payable and accrued liabilities 3,078,579 195,888 513,255 302,559 1,066,256 5,156,537 Due to other funds ‐ ‐ ‐ ‐ 3,350,540 3,350,540 Deposits from others 1,083,814 ‐ ‐ ‐ 19,995 1,103,809 Due to other governments 32,421 ‐ ‐ ‐ ‐ 32,421 Unearned revenue 2,186,571 223,070 6,029,585 1,889,015 10,328,241 Liability for self insurance 102,842 ‐ ‐ ‐ ‐ 102,842

Total Liabilities 6,484,227 418,958 513,255 6,332,144 6,325,806 20,074,390

Deferred Inflows of Resources

Unavailable revenues ‐ ‐ 1,542,183 ‐ 538,122 2,080,305

Fund Balances Nonspendable 166,047 ‐ 63,644 ‐ ‐ 229,691 Restricted ‐ 2,414,898 ‐ 1,690,974 2,563,712 6,669,584 Assigned ‐ ‐ 1,512,874 ‐ 14,647,728 16,160,602 Unassigned 16,342,158 ‐ ‐ ‐ (995,944) 15,346,214 Total Fund Balances 16,508,205 2,414,898 1,576,518 1,690,974 16,215,496 38,406,091

Total Liabilities, Deferred Inflows of Resources and Fund Balances 22,992,432$ 2,833,856$ 3,631,956$ 8,023,118$ 23,079,424$ 60,560,786$


17


Reconciliation of the Balance Sheet ‐ Governmental Funds to the Government‐Wide Statement of Net Position

June 30, 2014

Fund Balance ‐ Total governmental funds 38,406,091$

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. 94,119,963

Long‐term liabilities are not due and payable in the current period,and therefore, are not reported in the governmental funds.

Note Payable (761,035)$ Change in Risk Managememt (1,539,881) Due to the State of California ERAF (2,880,800) Compensated absences (2,832,388) (8,014,104)

Deferred Inflow of Resources 2,080,305

Net position of governmental activities 126,592,255$


18


Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental Funds

For the Year Ended June 30, 2014

Human Other

Services Mental Governmental

General Agency Road Health Funds Total

Revenues:

Taxes 14,277,919$ ‐$ ‐$ ‐$ 1,407,594$ 15,685,513$ Licenses and permits 988,892 ‐ ‐ ‐ 988,892 Aid from other governments 6,369,394 15,951,314 4,395,913 5,632,289 7,890,458 40,239,368 Use of money or property 224,861 18,790 12,580 26,232 79,621 362,084 Fines, forfeits and penalties 996,960 ‐ ‐ ‐ 17,306 1,014,266 Charges for services 4,184,099 ‐ ‐ 134,475 4,442,246 8,760,820 Miscellaneous revenue 464,308 54,506 99,283 ‐ 62,274 680,371

Total revenues 27,506,433 16,024,610 4,507,776 5,792,996 13,899,499 67,731,314 Expenditures:

Current: General government 2,852,758 ‐ ‐ ‐ 10,771 2,863,529 Public protection 20,690,629 ‐ ‐ ‐ 3,582,968 24,273,597 Public ways and facilities ‐ ‐ 2,334,654 ‐ 525,885 2,860,539 Health and sanitation ‐ ‐ ‐ 5,747,660 3,734,993 9,482,653 Public assistance 352,043 15,492,731 ‐ ‐ 3,688,235 19,533,009 Education 985,158 ‐ ‐ ‐ ‐ 985,158 Recreation and culture 125,063 ‐ ‐ ‐ ‐ 125,063 Debt Service: Principal 361,000 ‐ ‐ ‐ ‐ 361,000 Interest 2,924 ‐ ‐ ‐ ‐ 2,924 Capital outlay General government ‐ ‐ ‐ ‐ 800,129 800,129 Public protection ‐ ‐ ‐ ‐ 830,126 830,126 Public ways and facilities ‐ ‐ 2,963,262 ‐ 116,202 3,079,464 Public assistance ‐ ‐ ‐ ‐ 6,711 6,711 Recreation and culture ‐ ‐ ‐ ‐ 717,634 717,634

Total expenditures 25,369,575 15,492,731 5,297,916 5,747,660 14,013,654 65,921,536 Excess (deficiency) of revenues over (under) expenditures 2,136,858 531,879 (790,140) 45,336 (114,155) 1,809,778

Other Financing Sources (Uses):

Issuance of debt ‐ ‐ ‐ ‐ ‐ ‐ Transfers in 1,678,977 165,195 ‐ 45,772 2,991,189 4,881,133 Transfers out (544,892) (2,710,814) ‐ (114,933) (1,510,494) (4,881,133) Total other financing sources (uses) 1,134,085 (2,545,619) ‐ (69,161) 1,480,695 ‐

Net change in fund balances 3,270,943 (2,013,740) (790,140) (23,825) 1,366,540 1,809,778

Fund balances, beginning of year 13,237,262 4,428,638 2,366,658 1,714,799 14,848,956 36,596,313

Fund balances, end of year 16,508,205$ 2,414,898$ 1,576,518$ 1,690,974$ 16,215,496$ 38,406,091$


19


Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the

Government‐Wide Statement of Activities June 30, 2014

Net change to fund balance‐ Total governmental funds 1,809,778$

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 these assets is allocatedover their estimated useful lives and reported as depreciation expense.

Expenditures for general capital assets, infrastructure 5,547,123$ Less current year depreciation (4,632,179) 914,944

Revenues in the statement of activities that do not provide current financial resources are not reorted as revenues in the funds. 2,080,305

Repayment of debt principal is an expenditure in the governmental

funds, but the repayment reduces long‐term liabilities in the statement of net assets.

Note Payable 361,000

Some expenses reported in the statement of activities do notrequire the use of current financial resources and, therefore, arenot reported as expenditures in governmental funds.

Change in compensated absences 219,160

Change in net position of governmental activities 5,385,187$


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Statement of Net PositionPropriety FundJune 30, 2014

Business‐typeActivities

Solid Waste

Fund

Assets

Current Assets: Cash and investments 3,566,265$ Accounts Receivable 527,174 Total Current Assets 4,093,439

Noncurrent Assets: Loan receivable 722,000 Restricted Assets: Cash and investments for closure cost 5,032,458

Capital Assets: Nondepreciable: Land 313,079

Depreciable: Structures and improvements 867,085

Equipment 74,145

Accumulated depreciation (307,009)

Total Noncurrent Assets 6,701,758 Total Assets 10,795,197

Liabilities

Current Liabilities: Accounts payable and accrued liabilities 63,895 Total Current Liabilities 63,895

Long‐ Term Liabilities: Liability for compensated absences 39,154 Post‐ retirement health benefits Liability for closure and postclosure costs 5,032,458 Total Long‐term Liabilities 5,071,612 Total Liabilities 5,135,507

Net Position

Net investment in capital assets 947,300 Unrestricted 4,712,390 Total Net Position of business‐type activities 5,659,690$


21


Statement of Revenues, Expenses and Changes in Net PositionProprietary Funds



Solid Waste

Fund

Operating Revenues:

Charges for services 1,302,722$ Other operating revenues 347,417 Total Operating Revenues 1,650,139

Operating Expenses: Salaries, wages and employee benefits 242,391 Services and supplies 713,876 Landfill closure and postclosure charges 222,667 Depreciation and amortization 51,544 Total Operating Expense 1,230,478

Net Operating Income 419,661

Non‐ Operating Revenues (Expenses)

Interest income 41,400 Total Non‐Operating Revenues (Expenses) 41,400

Change in Net Position 461,061

Net Position ‐ Beginning of Year 5,198,629

Net Position ‐ End of Year 5,659,690$


22


Statement of Cash FlowsProprietary Funds



Solid Waste

Fund

Cash Flows from Operating Activities

Receipts from customers 1,519,757$ Payments to suppliers for goods and services (738,614) Payments to employees for salaries and benefits (250,863)

Net cash provided by operating activities 530,280

Cash Flows from Capital and Related Financing Activities

Loan Receivable 361,000 Cash purchase of capital assets (91,672)

Net cash provided by capital and related financing activities 269,328

Cash Flows from Investing Activities

Interest received 41,400 Net cash provided by investing activities 41,400

Net Increase (Decrease) in Cash and Cash Equivalents 841,008 Cash and cash equivalents, July 1 7,757,715 Cash and cash equivalents, June 30 8,598,723$

Reconciliation of cash and cash equivalents

to the Statement of Net Position

Current assets ‐ cash and investments 3,566,265$ Restricted assets ‐ cash and investments 5,032,458

8,598,723$

Reconciliation of operating income (loss)

to net cash provided by (used in) operating activities:

Operating income 419,661$ Adjustments to reconcile operating income

to net cash provided by operating activities: Depreciation and amortization 51,544

(Increase) decrease in receivables (130,382) Prepaid items ‐ Due from other governmental agencies ‐ Capital Assets ‐ Increase (decrease) in accounts payable (24,738) Increase (decrease) in landfill closure and postclosure charge 222,667 Increase (decrease) in compensated absences (8,472) Total adjustments 110,619 Net cash provided by operating activities 530,280$


23


Statement of Fiduciary Net PositionFiduciary FundsJune 30, 2014

Investment Agency Assets Trust Funds Total

Current Assets: Cash and investments 69,153,359$ 8,672,650$ 77,826,009$ Taxes receivable ‐ 5,011,465 5,011,465

Total Assets 69,153,359 13,684,115 82,837,474

Liabilities

Liabilities:

Agency obligations ‐ 13,684,115 13,684,115

Total Liabilities ‐ 13,684,115$ 13,684,115

Net Position

Held in trust for pool participants 69,153,359 69,153,359

Total Net Position 69,153,359$ 69,153,359$


24


Statement of Changes in Fiduciary Net PositionInvestment Trust Funds


Investment

Trust

Additions:

Contributions to pooled investments 316,294,156$ Investment Income (net of administrative expense) 315,348

Total additions 316,609,504

Deductions:

Distributions from pooled investments (325,532,689)

Total deductions (325,532,689)

Change in net position (8,923,185)

Net position, beginning of year 78,076,544

Net position, end of year 69,153,359$


25


INDEX TO THE NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2014

Page

1. Summary of Significant Accounting Policies 26

2. Cash and Investments 35

3. Interfund Transactions 39

4. Receivables 40

5. Capital Assets 41

6. Long‐Term Debt 43

7. Contingencies. 43

8. Leases 44

9. County Employee’s Retirement Plan 44

10. Excess of Expenditures Over Appropriations in Individual Funds 46

11. Deficit Fund Balances 46

12. Closure and Post‐closure Care Cost 47

13. Other Post‐Employment Benefits (OPEB) 47

14. Risk Management 49

15. New Authoritative Pronouncements 50


NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2014

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Description of the Reporting Entity The County of San Benito (County), was created pursuant to general law as a subdivision of the State of California. It is governed by a five-member elected Board of Supervisors. As required by generally accepted accounting principles, the accompanying financial statements present the County (the primary government) and its component units, entities for which the government is considered to be financially accountable and has a potential financial benefit/burden relationship under the criteria set by Government Auditing Standards Board (GASB) Statements No. 61. 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, so data from these units are combined with the data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize they are legally separate from the County. Each component unit has a June 30th year-end. Blended Component Units • County Service Areas (CSA) CSAs are special districts established by the Board of Supervisors for the purpose of providing specific services to County residents. Although the CSAs are legally separate from the County, they are reported as if they were part of the primary government because they are governed by the County Board of Supervisors and the Board has operational responsibility for the CSAs. The books and records of these CSAs are maintained by the County, and their activities are reported within non-major governmental funds. CSA #4 Santa Rosa Acres CSA #30 McCloskey Acres CSA #5 Hillcrest/ El Toro CSA #31 Stonegate CSA #8 Bonnie View CSA #33 Fallon/Fairview CSA #9 Ridgemark CSA #34 Ausaymas Estates CSA #11 Barnes Lane CSA #35 Union Heights CSA #16 Holiday Estates CSA #36 Advanced Life Support CSA #19 Springwood CSA #42 Lemmon Acres CSA #21 Long Acres CSA #45 Rancho Larios CSA #22 Cielo Vista CSA #46 Quail Hollow CSA #23 Rancho San Joaquin CSA #47 Oak Creek CSA #24 Santa Ana Acres CSA #48 Dry Creek Estates

CSA #25 Vineyard Estates CSA #49 Hollister Ranch Estates CSA #28 Heatherwood CSA #50 Dunnville CSA #29 Brown/ Magladry CSA #53 Riverview Estates CSA #54 Pacheco Creek Estates

26

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Discretely Presented Component Units • First 5 San Benito The FIRST 5 San Benito (FIRST 5) was created under the provisions of the California Children and Families Act of 1998 (the Act). The Act became law in 1998 when California voters approved Proposition 10, authorizing the State to levy a tax on tobacco products to pay for programs to promote the healthy development of young children. FIRST 5’s board consists of nine members, three of whom are officers of the County, while the remaining seven are appointed by the Board. FIRST 5 does not provide a financial benefit nor impose a financial burden on the County. However, due to the nature and significance of FIRST 5’s relationship with the County, FIRST 5 is a discretely presented component unit of the County. Separate audited financial statements may be obtained from First Five San Benito, 1011 Line Street, Suite 10, Hollister, CA 95023. B. Basis of Presentation and Measurement Focus Government‐Wide Financial Statements The Statement of Net Position and statement of activities display information about the primary government (County) and its component units. These statements include the financial activities of the overall government, except for fiduciary activities. All internal balances in the statement of net position have been eliminated with the exception of those representing balances between governmental activities and the business‐type activities, which are presented as interfund balances. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business‐type activities of the County. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business‐type activities, which rely to a significant extent on fees charged to external parties. The Statement of Activities presents a comparison between program expenses and program revenues for each segment of the business‐type activities of the County and for each function of the County’s governmental activities. Program expenses include direct expenses, which are clearly identifiable with a specific function, and allocated indirect expenses. The County follows the cost principles and procedures issued from the U.S. Office of Management and Budget, Circular A‐87 to allocate indirect expenses. This provides specific direction for determining cost applicable to Federal award recipients and the County allocates these indirect cost rates to all operating departments in accordance with this criteria. Each year, the County’s Indirect Cost Plan is reviewed and approved by the California State Controller’s Office, the County’s cognizant agency, as a Federal award recipient. 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.

27

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operation. The principal operating revenues of the County’s enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and 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 safety and protection, public ways and facilities, health and sanitation, public assistance, education and recreation services.

• The Human Services Agency is used to account for all revenues and expenditures necessary

to carry out basic governmental activities of the County that relate to health programs, children’s programs and veterans services, such as public health, veteran’s services, public guardian, and drug and alcohol programs.

• The Road Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the County that relate to public ways not accounted for through other funds.

• The Mental Health Fund is used to account for the revenue and expenditures necessary to

provide quality care for the people who experience severe or chronic psychological and emotional distress.

The County reports the following major enterprise fund:

• The Solid Waste Fund is used to account for operations of the solid waste handling activity. The County reports the following additional fund types:

• The Investment Trust Fund accounts for the assets of legally separate entities that deposit cash with the County Treasurer. These entities include school and community college districts, other special districts governed by local boards, regional boards and authorities and pass through funds for tax collections for independent agencies. 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 local

governments.

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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The government-wide, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and accrual basis of accounting. Agency funds have no measurement focus and report only assets and liabilities. However, agency funds use the accrual basis of accounting when recognizing receivables and payables. 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 are reported using the current financial resources measurement focus and the modified basis of accounting. Under this method, revenues are recognized when measurable and available (“susceptible to accrual”). The County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. 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 assets acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and capital leases are reported as other financing sources. C. Cash and Investments

The County follows the practice of pooling cash and investments of all funds with the County Treasurer, except for certain amounts which are generally held by outside custodians and classified as “other bank accounts” on the accompanying financial statements. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. The County is required by the California Integrated Waste Management Board to set aside the amounts identified as Restricted Cash in the Landfill Enterprise Fund to assure that these amounts will be available in a timely manner for the closure and/or postclosure maintenance cost of the Solid Waste Fund, as specified in the California Public Resources Code. These amounts are reported as restricted, non-current assets in the statement of Net Position of the Propriety Fund. The County has cash and investments for the restricted amounts that are held in the Tobacco Settlement Fund and in the General Fund with Trindel Insurance. Trindel Insurance is the County’s claims-servicing joint powers agency for self insurance. These amounts are managed for the specific purposes specified in the agreements with these agents. At June 30, 2014, the County had reported $4,837,317 in the Tobacco Securitization Fund and $4,238,040 in the General Fund with Trindel Insurance. State statutes authorize the County to invest its surplus cash in obligations of the U.S. Treasury, agencies and instrumentalities, corporate bonds rated P-1 by Standard & Poor’s Corporation or A-1 by Moody’s Investor Service, bankers’ acceptances, certificates of deposit, commercial paper, repurchase agreements, and the State of California Local Agency Investment Fund. Gains and losses are recognized upon sale based upon the specific identification method. Investments in nonparticipating, interest earning investment contracts (guaranteed investment contracts) are reported at cost, commercial paper with maturities of less than 90 days are reported at amortized cost and all other investments are reported at fair value. The fair values of investments are obtained by using quotations from independent published sources.

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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The County participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pooled funds in derivatives and similar transactions. LAIF’s investments are subject to credit risk with the full faith of the State of California collateralizing these investments. In addition, these derivatives and similar transactions are subject to market risk as to change in interest rates. LAIF’s investments are managed by the State Treasurer. The Fund is not SEC registered, but is required to invest according to California Government Code. A Local Investment Advisory Board has oversight responsibility for LAIF. Interest income earned on pooled cash and investments is allocated quarterly to the appropriate funds for the quarter in which the interest was earned. D. Receivables The County does not calculate an allowance for uncollectible accounts. The County considers all receivables to be collectible until they are proven to be uncollectible. At that time, the County asks for approval from the Board of Supervisors to write-off any uncollectible receivables. E. Inventories and Prepaid Items Inventories are valued at cost using first-in/first-out (FIFO) method and consist of expendable supplies. The cost is recorded as an expenditure at the time individual inventory items are consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. Reported inventories and prepaid items of governmental funds are equally offset by corresponding nonspendable portion of fund balance to indicate that they are not expendable available financial resources. F. Capital Assets Capital assets include public domain general capital assets consisting of roads, bridges, water/sewer, lighting system, drainage systems, flood control and other infrastructure. 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 two years. 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. Depreciation begins when the asset is placed in service and ends in the fiscal year that it is retired from service or is fully depreciated.

The estimated useful lives are as follows: Roads and bridges 35 to 50 years

Infrastructure (except for the maintained pavement subsystem) 15 to 50 years

Structures and improvements 15 to 50 years Equipment 3 to 25 years

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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Deferred Outflows/Inflows of Resources The County recognizes deferred outflows of resources and deferred inflows of resources in accordance with GASB Statement No. 60 and GASB Statement No 65. In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The county currently does not have any amounts to report under this section. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. In the Government-Wide Financial Statements, unearned revenue is a liability reported when revenue has been received prior to revenue recognition. The county currently does not have any amounts to report under this section. H. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. I. Compensated Absences The County allows employees to accumulate unused sick leave and unused vacation leave up to a specified maximum cap based on an employee’s bargaining unit or management group. Sick leave is paid only upon retirement at half the employee’s hourly rate. Upon separation, all accrued vacation is paid to the employee. County employees can also accrue comp time which is payable upon separation. The County accrues accumulated unpaid compensated absences when earned (or estimated to be earned) by the employee. All vacation and comp time is accrued when incurred in the government-wide and proprietary fund statements. J. Other Long-term Obligations In the government-wide financial statements and the proprietary fund types in the fund financial statements, long-term debt and other long-term obligation are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using a method that approximates the effective interest method. Bond issuance costs are reported as expenses in the period incurred. Bonds payable are reported net of the applicable bond premium or discount. Gains or losses from advance refundings are deferred and amortized as interest expense over the life of the new refunding debt.

31

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) In the fund financial statements, governmental fund types recognize bond premium and discount, during the current period. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. K. Property Taxes The State of California Constitution, Article XIIIA provides that the combined maximum property tax rate on any given property may not exceed 1% of its assessed value unless an additional amount for general obligation debt has been approved by the voters. Assessed value is calculated at 100% of market value as defined by Article XIIIA and may be increased by no more than 2% per year unless the property is sold or transferred. These general property tax rates do not apply to taxes levied to pay the interest and redemption charges on any indebtedness incurred prior to June 6, 1978, or subsequently approved by the voters. Supplemental property taxes are levied on a pro rata basis when changes in assessed valuation occur due to sales transactions or the completion of construction. The State Legislature has determined the method of distribution among the counties, cities, school districts, and other districts of receipts from the 1% property tax levy. Property taxes are levied by San Benito County on January 1 and are payable in two installments on April 10 and December 10. San Benito County bills and collects its own property taxes and also collects such taxes for cities, schools and special districts. Property tax revenues are recognized when levied to the extent they result in current receivables. The County assesses properties and bills for and collects property taxes as follows:

Secured Unsecured Valuation/lien dates January 1 January 1 Levy dates January 1 January 1 Due dates (delinquent as of) 50% on November 1 (December 10) March 1 (August 31) 50% on February 1 (April 10) The term “unsecured” refers to taxes on personal property other than land and buildings. These taxes are secured by liens on the property being taxed. The county adopted the Alternate Method of Property Tax Allocation (commonly referred to as the Teeter Plan). Under the Teeter Plan, the County Auditor‐Controller, an elected official, is authorized to pay 100% of the property taxes billed (secured, supplemental and debt service) to the taxing agencies within the County. The County recognizes property tax revenues in the period for which the taxes are levied. Previously, such taxes were allocated and paid as the taxes were collected. L. 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” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., 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 “interfund balances”. Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.

32

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 proprietary funds are netted as part of the reconciliation to the government‐wide presentation. M. Estimates The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. N. 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 on or before August 30. Budgeted expenditures are enacted into law through the passage of an Appropriation Ordinance. This ordinance mandates the maximum authorized expenditures for the fiscal year and cannot be exceeded except by subsequent amendments to the budget by the County’s Board of Supervisors. An operating budget is adopted each fiscal year for the majority of the Governmental Funds. Expenditures are controlled at the department level for the County. Department level expenditures may not legally exceed appropriations. Any amendments or transfers of appropriations between departments or funds are authorized by the County Administrator’s office and must be approved by the Board of Supervisors. Supplementary appropriations normally financed by unanticipated revenues during the year must be approved by the Board of Supervisors. Pursuant to Board Resolution, the County Administrative Officer and/or appointed department head are authorized to approve transfers and revisions of appropriations under $25,000 within a single budget unit as deemed necessary and appropriate unless it is to a capital asset object. Transfers to capital asset objects must be approved by the Board of Supervisors. Budgeted amounts in the budgetary financial schedules are reported as originally adopted and as amended during the fiscal year by resolutions approved by the Board of Supervisors. The budget approved by the Board of Supervisors for the general fund includes budgeted expenditures and reimbursements for amounts disbursed on behalf of other Governmental Funds. Actual reimbursements for these items have been eliminated in the accompanying budgetary financial schedules. Accordingly, the related budgets for these items have also been eliminated in order to provide a meaningful comparison of actual and budgeted results of operations. Encumbrances outstanding at year‐end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Unencumbered appropriations lapse at year‐end. Encumbered appropriations are carried forward in the ensuing year’s budget. At June 30, 2014, there were no encumbrances outstanding. O. Net Position The government‐wide and business‐type activities financial statements utilize a net position presentation. Net position represents the difference between assets plus deferred outflows of resources and liabilities plus deferred inflows of resources and are displayed in three components:

33

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Net Investment 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 Position – This category represents net position that is subject to constraints either (1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position – This category represents the net position of the County, not restricted for any project or other purpose. When both restricted and unrestricted net assets are available, restricted resources are used first, then unrestricted resources as they are needed. P. Fund Balances Fund balance classifications are based primarily on the extent to which the County is bound to honor constraints on the use of the resources reported in each governmental fund. The County reports the following classifications: Nonspendable fund balance – This category represents amounts that cannot be spent because they are either not spendable in form or legally or contractually required to remain intact. Restricted fund balance – This category represents amounts with constraints placed on their use by those external to the County, including creditors, grantors, contributors or laws and regulations of other governments. It also includes constraints imposed by law through constitutional provisions or enabling legislation. Committed fund balance – This category represents amounts that can only be used for specific purposes determined by formal action (ordinance) 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 (ordinance) that imposed the limitation needs to occur no later than the close of the reporting period. Assigned fund balance – This category represents amounts that are constrained by the County’s intent to be used 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 the purpose. Unassigned fund balance – This category represents the residual classification that includes amounts not contained in the other classifications. The County’s board establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution. When restricted and unrestricted resources are available for use, it is the County’s policy to use restricted resources first, followed by the unrestricted resources that are committed, assigned and unassigned, in this order as they are needed.

34

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Balance Policy: Fund balance of governmental funds is reported in various categories based on the nature of any limitation requiring the use of resources for specific purposes. The government itself can establish limitations on the use of resources through either a commitment (committed fund balance) or an assignment (assigned fund balance). The purpose of the County’s fund balance policy is to maintain a prudent level of financial resources to protect against reducing service levels or raising taxes and fees because of temporary revenue shortfalls or unpredicted one‐time expenditures. The county believes that sound financial management principles require that sufficient funds be retained by the County to provide a stable financial base at all times. To retain this stable financial base, the County needs to maintain unrestricted fund balance in its county funds sufficient to fund cash flows of the County and to provide financial reserves for unanticipated expenditures and/or revenue shortfalls of an emergency nature. Committed, assigned and unassigned fund balances are considered unrestricted. NOTE 2. CASH AND INVESTMENTS The County maintains a cash and investment pool for the purpose of increasing interest income through pooled investment activities. This pool, which is available for use by all funds, is displayed on the basic financial statements as “Cash and Investments.” Interest earned on the investment pool is distributed to the participating funds quarterly using a formula based on the average daily cash balance of each fund. Cash and investments with the County Treasurer are invested pursuant to investment policy guidelines established by the County Treasurer. Investments made by the Treasurer are regulated by the California Government Code and by the County’s investment policy. The objectives of the policy are, in order of priority, safety of principal, liquidity, availability and yield. The County investment pool is not registered with the Securities and Exchange Commission as an investment company. A. Custodial Credit Risk‐County of San Benito Policy: Deposits Cash balances held in banks are qualified as “public funds”. These funds must be collateralized by the Depository at a rate of 110%. The Depository agent must file with the Administrator of the Local Agency Security of the State of California an agreement to comply in all aspects with the provisions of Title 5, Division 2, Part 1, Chapter 4, Article 2 (commencing with Section 53630) of the Government code. The County follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on a quarterly basis to the various funds based on their average daily cash balance and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

35

NOTE 2. CASH AND INVESTMENTS (Continued) Investments The County’s investment policy requires that securities be registered in the name of the County. All safekeeping receipts for investment instruments are held in accounts in the County’s name and all securities are registered in the County’s name. Interest Rate Risk Investments are made based upon prevailing market conditions at the time of the transaction with the intent to hold the instrument until maturity. If the yield of the portfolio can be improved upon the sale of an investment, prior to its maturity, with the reinvestment of the proceeds, then this provision is also allowed. In accordance with its investment policy, the County manages its interest rate risk by limiting the weighted average maturity of its investment portfolio to three years or less. No security, at the time of purchase, shall have a maturity exceeding five (5) years. At June 30, 2014 the County had the following investment maturities: 2014 $ 43,360,305 2015 29,785,723 2016 48,392,344 2017 8,000,904 2018 3,011,670 Total $ 132,550,946 Concentration of Credit Risk Credit risk in the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Concentration of credit risk is the risk of loss attributed to the magnitude of an investment in a single issuer. The County Treasurer mitigates these risks by holding a diversified portfolio of high quality investments. The adopted investment policy contains specific limitations on investments by credit quality, maturity length and the maximum allocation by asset class. The amount in the Local Agency Investment Fund (LAIF), managed by the State Treasurer for the State of California, is $64.8 billion at June 30, 2014. The state pools these funds with those of other local agencies in the state and invests the cash as prescribed by the California Government Code. These pooled funds are carried at cost, which approximates market value. Interest earned is deposited quarterly into participating funds. Any investment gains/losses are shared proportionately by all funds in the pool. Funds are accessible and transferable to the County’s bank accounts on the same day for amounts under $10,000,000 and require a twenty-four (24) hour notice for larger amounts. The Local Agency Investment Fund has a very diversified and regulated investment portfolio; the fund is not insured by either the State of California or the Federal Government.

36

NOTE 2. CASH AND INVESTMENTS (Continued) Summary of Cash and Investments The County had the following cash and investments at June 30, 2014: Cash in bank $ 686,216 Investments 132,550,946 Total Cash in Treasury 133,237,162 Less: outstanding checks (4,138,011) Total cash and investments $ 129,099,151 Credit Risk As of June 30, 2014, the County of San Benito’s investments were rated by Standard & Poor’s and Moody’s Investor Services as follows: Rating as of Year End Standard & % of Investment Type Cost Poor's Moody's Portfolio Commercial Paper $ 4,996,850 Not rated Not rated 3.77% Commercial Paper 4,996,840 Not rated Not rated 3.77% Negotiable CDs 5,000,000 Not rated Not rated 3.77% Negotiable CDs 5,003,082 Not rated Not rated 3.77% Negotiable CDs 5,019,750 A+ Aa2 3.79% Negotiable CDs 5,002,012 Not rated Not rated 3.77% Negotiable CDs 5,004,585 Not rated Not rated 3.78% Negotiable CDs 7,003,511 Not rated Not rated 5.29% Negotiable CDs 2,000,796 Not rated Not rated 1.51% Negotiable CDs 5,000,000 Not rated Not rated 3.77% Negotiable CDs 3,000,904 Not rated Aa3 2.26% Negotiable CDs 5,000,983 Not rated Not rated 3.77% Medium Term Notes 4,922,834 A A3 3.71% Medium Term Notes 4,923,870 AA+ A1 3.72% Medium Term Notes 4,866,615 Not rated A1 3.67% Medium Term Notes 5,004,780 AA Aa3 3.78% Medium Term Notes 3,011,670 AA- Aa2 2.27% Medium Term Notes 6,041,214 AA Aa2 4.56% Medium Term Notes 1,822,979 Not rated Aaa 1.38% Medium Term Notes 4,917,500 A+ A2 3.71% Medium Term Notes 3,020,400 AA- Aa2 2.28% Medium Term Notes 4,020,600 AA- Aa3 3.03% Medium Term Notes 4,469,171 AA- Aa2 3.37% State Investment Pool 28,500,000 Not rated Not rated 21.50% Total $ 132,550,946 100.00%

Generally, credit risk is the risk that an insurer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assessment 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.

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NOTE 2. CASH AND INVESTMENTS (Continued) The fair value of the Treasurer’s investments is determined on a quarterly basis. Values are obtained from the securities custodian for registered securities. The County is authorized to enter into reverse repurchase agreements, but entered into no such agreements during the year. B. Deposits and Non-Negotiable Certificates of Deposit All demand deposits with banking institutions and non-negotiable certificates of deposit are entirely insured or collateralized. California Government Code Section 53652 requires California banks and savings and loan associations to secure a County’s deposits by pledging government securities as collateral. The market value of pledged securities must equal at least 110% of a County’s deposits. California law also allows financial institutions to secure county deposits by pledging first trust deed mortgage notes that have a value of 150% of a county’s total deposits. The County may waive collateral requirements for deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC). At year-end the carrying amount of the County’s Treasury deposits with banking institutions was $686,216. Any difference between the carrying amount of the County’s deposits and the bank balance is a result of transactions in transit. Of the bank balance, $250,000 was covered by federal depository insurance and $436,216 was covered by collateral pledged by the financial institution. C. Condensed Investment Pool Information The following represents a condensed statement of net position and statement of changes in net position for the activity in the Treasurer’s investment pool as of and for the year ended June 30, 2014: Statement of Net Position Total Internal External Investment Assets Participants Participants Pool

Net pooled cash and investments $ 59,945,792 $ 69,153,359 $ 129,099,151 Net Position

Net position held for internal pool participants and external pool participants (voluntary and involuntary) $ 59,945,792 $ 69,153,359 $ 129,099,151 Condensed Statement of Changes in Net Position (Internal and External) Total Investment Pool Net position as of July 1, 2013 $ 129,807,959 Net change in pooled cash and investments (708,808) Net position as of June 30, 2014 $ 129,099,151

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NOTE 3. INTERFUND TRANSACTIONS Interfund Receivables/Payable The composition of interfund balances as of June 30, 2014 is as follows: Receivable Fund Payable Fund Amount Purpose Due to/from other funds: General Fund Victim Witness Fund $ 36,439 Interfund borrowing General Fund Tobacco Securitization Fund 3,029,326 Interfund borrowing General Fund CSWD Fund 284,775 Interfund borrowing $ 3,350,540 Amounts due to and from other funds are from temporary loans to cover deficit cash balances at year-end. These amounts will be repaid in the following fiscal year. Transfers Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various County operations and re-allocations of special revenue. The following schedule briefly summarizes the County’s transfer activities: Transfer From Transfer To Amount Purpose General Fund Human Services Agency $ 165,195 Funding for operations General Fund Mental Health Fund 45,772 Funding for operations General Fund Public Authority 150,000 Funding for operations General Fund Cal Fire 180,000 Funding for operations General Fund Mosquito 3,925 Funding for operations Human Services Agency Fund Public Authority 925,096 Funding for operations Human Services Agency Fund General Fund 1,600,000 Funding for operations Human Services Agency Fund Capital Projects Fund 185,718 Funding for capital outlay Mental Health Fund Capital Projects Fund 114,933 Funding for capital outlay Fire Impact Fee Fund Capital Projects Fund 324,575 Funding for capital outlay Jail/Juvenile Hall Impact Fund General Fund 43,404 Funding for operations Tobacco Settlement Fund Capital Projects Fund 328,867 Funding for capital outlay Road Equipment Impact Capital Projects Fund 116,202 Funding for equipment UNET Fund General Fund 35,573 Funding for operations Parks Impact Fund Capital Projects Fund 661,873 Funding for capital outlay $ 4,881,133

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NOTE 3. INTERFUND TRANSACTIONS (Continued) Loan Receivable The Landfill Fund made a loan to the Capital Project Fund for the New Sheriff’s Administration/County Permit Center Building in Fiscal Year 2010/11 in the amount of $1,805,000. The balance remaining as of June 30, 2014 is $722,000. For the last three years, payments on the loan have been paid for out of the Tobacco Securitization Fund. Future scheduled payments of principle and interest are estimated by the following schedule with interest based on the County’s Treasurer’s Investment Pool: Fiscal Year Principle Interest Total Remaining 2014/15 $ 363,000 $ 7,000 $ 370,000 $ 359,000 2015/16 $ 359,000 $ 3,500 $ 365,000 $ – Future payments to the Landfill Fund are determined during each year’s budgetary process with available resources of the various Capital Improvement Funds. NOTE 4. RECEIVABLES Receivables as of June 30, 2014, for the County’s individual major, nonmajor and enterprise fund are as follows: Governmental Funds: Total Human Other Govern- Services Mental Govern- mental General Agency Road Health mental Funds

Receivables: Accounts – net $ 609,604 $ 169 $ 1,986,835 $ – $ 413,353 $ 3,009,961 Due from other agencies – 17,031 – 1,024,769 674,113 1,715,913 Totals $ 609,604 $ 17,200 $ 1,986,835 $ 1,024,769 $ 1,087,466 $ 4,725,874

Proprietary Fund: Solid Waste Fund

Accounts – net $ 527,174 Loan receivable 722,000 Totals $ 1,249,174

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NOTE 5. CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2014 was as follows: Balance Transfers & Balance June 30, 2013 Additions Retirement Adjustments June 30, 2014

Governmental Activities Capital assets, not being depreciated: Land $ 1,221,028 $ – $ – $ – $ 1,221,028 Construction in progress 9,261,987 5,242,934 – (443,823) 14,061,098

Total capital assets not being depreciated 10,483,015 5,242,934 – (443,823) 15,282,126

Capital assets, being depreciated: Infrastructure 168,000,092 – – 443,823 168,443,915 Improvements 22,177,516 – – – 22,177,516 Equipment 13,918,568 304,189 – – 14,222,757

Total capital assets, being depreciated 204,096,176 304,189 – 443,823 204,844,188

Less accumulated depreciation for: Infrastructure (98,029,317) (3,223,655) – – (101,252,972) Improvements (10,387,954) (809,354) – – (11,197,308) Equipment (12,956,901) (599,170) – – (13,556,071)

Total accumulated depreciation (121,374,172) (4,632,179) – – (126,006,351)

Total capital assets, being depreciated, net 82,722,004 (4,327,990) – 443,823 78,837,837

Governmental ‐ type activities capital assets, net $ 93,205,019 $ 914,944 $ – $ – $ 94,119,963

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NOTE 5. CAPITAL ASSETS (Continued) Balance Transfers & Balance June 30, 2013 Additions Retirement Adjustments June 30, 2014 Business ‐ Type Activities Capital assets, not being depreciated: Land $ 313,079 $ – $ – $ – $ 313,079 Construction in progress – 60,823 – – 60,823 313,079 60,823 – – 373,902 Capital assets, being depreciated: Improvements 806,262 – – – 806,262 Equipment 43,296 30,849 – – 74,145

Total capital assets, being depreciated 849,558 30,849 – – 880,407 Less accumulated depreciation (255,465) (51,544) – – (307,009) Total capital assets, being depreciated, net 594,093 (20,695) – – 573,398 Business‐type activities capital assets, net $ 907,172 $ 40,128 $ – $ – $ 947,300 Depreciation

Depreciation expense was charged to governmental functions as follows:

General government $ 185,451 Public safety 674,663 Public ways and facilities 3,611,146 Health and sanitation 28,931 Public assistance 59,211 Education 15,501 Recreation and cultural services 57,276 Total Depreciation Expense – Governmental Functions $ 4,632,179

Depreciation expense was charged to the business‐type function as follows:

Solid Waste – County Landfill $ 51,544

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NOTE 6. LONG‐TERM DEBT A. Summary of Long‐Term Debt Long‐term liabilities at June 30, 2014 consisted of the following: The following is a summary of long‐term liabilities transactions for the fiscal year ended June 30, 2014: Balance Balance Amounts Due June 30, 2013 Additions Retirement June 30, 2014 Within One Year Governmental Activities: Interfund payable $ 1,122,035 $ – $ (361,000) $ 761,035 $ 376,200 Compensated absences 3,051,548 – (219,160) 2,832,388 283,239 Liability for unpaid claims 1,523,933 595,930 – 2,119,863 –

Total Governmental Activities Long ‐Term Liabilities $ 5,697,516 $ 595,930 $ (580,160) $ 5,713,286 $ 659,439 Business‐ Type Activities: Compensated absences $ 47,626 $ – $ (8,472) $ 39,154 $ 3,915 Closure and post closure 4,818,391 214,067 – 5,032,458 –

Total Business‐ Type Activities Long‐ Term Liabilities $ 4,866,017 $ 214,067 $ (8,472) $ 5,071,612 $ 3,915 NOTE 7. CONTINGENCIES A. Litigation There are many lawsuits pending in which the County is involved. Some of the lawsuits have been filed solely against the County, while in others, the County is one of a group of defendants. The County Counsel has indicated that the potential uninsured claims against the County resulting from such litigation would not materially affect the financial statements of the County. B. Grants The County participates in a number of federal and state programs that are fully or partially funded by grants received from other governmental entities. The County participates in other federal and state programs where County costs are recovered on a reimbursable basis. Grant expenditures and reimbursements are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with the relevant regulations, the County may be required to reimburse the appropriate governmental agency. As of June 30, 2014, significant amounts of grant expenditures and records relating to reimbursements have not been audited, but the County believes that disallowed expenditures or reimbursements, if any, based on subsequent audits will not have a material effect on any of the individual governmental funds or the overall financial position of the County.

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NOTE 8. LEASES A. Operating Leases The County rents various office space and equipment for normal operations. All of these leases contain options to renew the lease at the end of the lease terms. Remaining noncancellable, subject to non-appropriation, minimum future payments on these leases are as follows:

June 30 Total 2015 $ 409,515 2016 409,515 2017 409,515 2018 409,515 2019 409,515 2020 – 2024 2,047,575 $ 4,095,150 Rent expenditures were $389,449 for the year ended June 30, 2014. NOTE 9. COUNTY EMPLOYEE’S RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) A. Plan Description The County of San Benito contributes to the California Public Employees Retirement Systems (PERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A menu of benefit provisions, as well as other requirements, are established by State statutes within the Public Employees’ Retirement Law. The County selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local County ordinance. CalPERS issues a separate comprehensive annual financial report which is available to the public. Copies of the CalPERS’ annual financial report may be obtained by contacting the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814. B. Funding Policy Active plan members in PERS are required to contribute a percentage of their annual covered salary, which is 7% for miscellaneous employees and 9% for public safety employees. Due to collective bargaining agreement, the County pays various percentages of the required member contribution. The County is required to contribute at an actuarially determined rate. For fiscal year 2013-14, the employer rate is 14.058% for miscellaneous members and 33.008% for safety members. The contribution requirements of the plan members are established by state statute and the employer contribution rate is established and may be amended by PERS. On September 12, 2012, the California Public Employees’ Pension Reform Act of 2013 (PEPRA) was signed into law. PEPRA took effect January 1, 2013 and affects new CalPERS members on or after January 1, 2013 through provisions affecting benefit formulas, the definition of what comprises pensionable earnings, limits on pensionable earnings, and other matters. The new law also calls for new members to pay 50% of the normal cost of benefits. The County had employees subject to the new PEPRA formulas as of June 30, 2014. The contribution rate for those employees is 12.25% for PEPRA safety employees and 6.5% for PEPRA miscellaneous employees.

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NOTE 9. COUNTY EMPLOYEE’S RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (Continued) Annual Pension Cost For fiscal year 2013–14, the County’s required and actual contribution was $5,368,239. Of this amount the annual pension cost to the county was $3,825,021 and $1,543,218 was paid by employees. Annual Percentage Fiscal Pension of APC Year Ended Cost (APC) Contributed Safety Plan: 6/30/14 $ 1,848,667 100% 6/30/13 $ 2,042,353 100% 6/30/12 $ 2,311,395 100% PEPRA Safety Plan: 6/30/14 $ 64,565 100% 6/30/13 7,255 100% Miscellaneous Plan: 6/30/14 $ 3,125,788 100% 6/30/13 $ 3,386,500 100% 6/30/12 $ 3,744,398 100% PEPRA Miscellaneous Plan: 6/30/14 $ 329,219 100% 6/30/13 36,515 100% The required contributions for fiscal year 2013–14 was determined as part of the June 30, 2011 actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 7.50% investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 3.3% to 14.2% depending on age, service and type of employment, and (c) 3% cost-of-living adjustment. Both (a) and (b) include an inflation component of 2.75%. The actuarial value of plan assets was determined using a technique that smoothes the effect of the short-term volatility in the market value of investments over a two to five year period depending on the size of investment gains and/or losses. The unfunded actuarial accrued liability (or excess assets) is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period at June 30, 2011 was twenty-two years for the miscellaneous group and sixteen years for the public safety group.

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NOTE 9. COUNTY EMPLOYEE’S RETIREMENT PLAN (DEFINED BENEFIT PENSION PLAN) (Continued) Funding Status and Funding Progress The following is the funded status information for each plan as of June 30, 2013, the most recent actuarial valuation date: Actuarial Annual UL as a Accrued Value Unfunded Funded Covered Percentage Liability of Assets Liability (UL) Ratio Payroll of Payroll (a) (b) (a)‐(b) (b)/(a) (c) [(a)‐(b)]/(c) Public Safety $ 45,258,456 $33,293,071 $11,965,385 73.6% $ 4,647,803 257.4% PEPRA Public Safety 8,819 12,944 (4,125) 146.8% 123,884 – Miscellaneous $125,360,857 $90,695,771 $34,665,086 72.3% $17,876,013 193.9% 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 the plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. NOTE. 10 EXCESS OF EXPENDITURES OVER APPROPRIATIONS IN INDIVIDUAL FUNDS The following funds reported an excess of expenditures over appropriations for the fiscal year ended June 30, 2014: Fish and Game $ 1,618 Cal Fire $ 13,424 NOTE 11. DEFICIT FUND BALANCES The special revenue fund Victim Witness had a net operating loss in which their expenditures exceeded their revenues by $24,285, increasing their ending deficit fund balance to a total of $38,181. The Stonegate Well Project, within one of the County’s Special Service Districts, had a deficit fund balance of $437,463, which is being funded through future property tax assessments under the authority of California’s voter approved Proposition 218 process. The fund created for Capital Projects incurred a net operating loss of $274,955, increasing their ending deficit fund balance to $520,300.

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NOTE 12. CLOSURE AND POSTCLOSURE CARE COSTS State and federal laws and regulations require that the County of San Benito place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to operating expenses related to current activities at the landfill, an expense provision and related liability are being recognized based on the future closure and post‐ closure care costs that will be incurred near or after the date the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of the landfill used during the year. The engineering estimated remaining permitted capacity at June 30, 2014 was 4,804,818 cubic yards, or 35.3%. The actual cost of closure and postclosure care may be higher due to inflation, changes in technology, or changes in landfill laws and regulations. The estimated liability for landfill closure and postclosure care costs has a balance of $5,032,458 as of June 30, 2014. The County holds cash and investments of $5,032,458 as of June 30, 2014 for the purpose of financing the closure and postclosure care. The California Environmental Protection Agency, Department of Resources Recycling and Recovery (CalRecycle) holds a beneficiary authority in the form of an “Enterprise Fund and Pledge of Revenue Agreement” in the closure and postclosure funds. On April 1, 2014, Waste Connections Inc, the contract operator of the landfill, notified the County that they were exercising their right to enter into a new Landfill Operating Agreement. One of the conditions of the new Agreement was the transfer of the closure and postclosure liability from the County to Waste Connections Inc. Waste Connections Inc. posted surety bonds with CalRecycle to cover the liability. On July 9, 2014, CalRecycle accepted the surety bonds as a substitute for the “Enterprise Fund and Pledge of Revenue Agreement” thereby freeing the dedicated County Enterprise funds held for this purpose. The County plans to release funds in the amount of $5,032,458 held in the Enterprise Fund to the General Fund Reserve. NOTE 13. OTHER POST‐EMPLOYMENT BENEFITS (OPEB) Plan Description The County of San Benito Retiree Healthcare Plan (Plan) is a single‐employer defined benefit healthcare plan administered by the County. The Plan provides healthcare insurance benefits to eligible retirees. The County has been under contract with CalPERS for medical plan coverage since 1993 for their employees, as provided by the Public Employee’s Medical and Hospital and Car Act (PEMHCA). The County provides postemployment health care benefits, in accordance with the health care regulations of the Public Employees Retirement System, to all employees, their spouses, and eligible dependents, who retire through CalPERS from the County on or after attaining age 50 with at least five years of service. Currently, 192 retirees meet those eligibility requirements. Funding Policy The contribution requirements of the plan members and the County are established and may be amended by the County. The County prefunds the plan through the California Employers’ Retiree Benefit Trust (CERBT) by contributing at least 100% of the annual required contribution.

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NOTE 13. OTHER POST-EMPLOYMENT BENEFITS (OPEB) (Continued) The annual required contribution (ARC) is an amount actuarially determined in accordance with the parameters of GASB Statement No. 45 – Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pension. The County’s 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 fiscal year 2013-14 ARC is $3,272,047. CERBT is a tax-qualified irrevocable trust organized under Internal Revenue Code Section 115 and established to pre-fund retiree healthcare benefits. CERBT issues a publicly available financial report including GASB 43 – Financial Reporting for Postemployment Benefit Plans Other than Pension Plans disclosure information in aggregate with other CERBT participating employers. That report may be obtained by contacting CalPERS, Executive Office, 400 P Street, Sacramento, CA 95814. Annual OPEB Cost and Net OPEB Obligation For fiscal year 2013-14, the County’s annual OPEB cost (expense) of $3,272,047 is detailed as follows: Annual Required Contribution:

Normal Cost $ 1,591,083 Amortization of Initial UAAL 1,449,570 Interest to 06/30/14 231,394

Total ARC (and Annual OPEB Cost) $ 3,272,047 Net OPEB Obligation at beginning of year $ – Plus Projected Annual OPEB Cost

a. Interest on Net OPEB Obligation at beginning of year – b. ARC for current fiscal year 3,272,047 c. ARC adjustment for current fiscal year – d. Projected Annual OPEB Cost (a.+b.+c) $ 3,272,047

Less Expected Total Employer Contribution (3,272,047) Expected Net OPEB Obligation @ 06/30/2014 $ –

Funded Status and Funding Progress The funded status of the plan, based on an actuarial valuation as of July 1, 2013, the plan’s most recent actuarial valuation date, was as follows:

Actuarial accrued liability (AAL) $ 30,241,842 Actuarial value of plan assets $ 14,563,383 Unfunded actuarial accrued liability (UAAL) $ 15,678,459 Funded ratio (actuarial value of plan assets/AAL) 48.2% Projected covered payroll (active Plan members) $ 35,582,000 UAAL as a percent of covered payroll 44.06%

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NOTE 13. OTHER POST-EMPLOYMENT BENEFITS (OPEB) (Continued) 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 cost 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 July 1, 2013 actuarial valuation, the entry age normal level percent of pay actuarial cost method was used. The actuarial assumptions included a 7.61% investment rate of return (net of administrative expenses), which is the expected long-term investment return on CERBT investments, and an annual healthcare minimum cost trend of 7.5%. The UAAL is being amortized over a 30 year period using the level-percentage of pay method on an open basis. The remaining amortization period at June 30, 2014 was 29 years. NOTE 14. 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 is a member of a joint powers agency (JPA), which self-insures the first $100,000 of general liability per occurrence and the first $300,000 of Workers’ Compensation per occurrence. The liability rests with the County. The County also belongs to another larger JPA called the County Supervisors Association of California Excess Insurance Authority (CSACEIA). CSACEIA along with other commercial carriers increases the coverage for general liability to $15 million. Also, CSACEIA, with other commercial carriers, covers replacement cost on property to $600 million with a $25,000 deductible for real property and a $20,000 deductible for vehicles. Trindel covers all but $1,000 of these deductibles, per occurrence. 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. The actuarial expected claims liabilities at year end, projected with a 50% confidence level at June 30, 2014 are $2,119,863.

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NOTE 15. NEW AUTHORITATIVE PRONOUNCMENTS The Governmental Accounting Standards Board (GASB) has released the following new

standards which are not yet effective. In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for

Pensions an amendment of GASB Statement No. 27 and No. 50. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures. Note disclosures and required supplementary information requirements about pensions are also addressed.

The requirements of this Statement will improve the decision-usefulness of information in

employer and governmental nonemployer contributing entity financial reports and will enhance its value for assessing accountability and interperiod equity by requiring recognition of the entire net pension liability and a more comprehensive measure of pension expense.

This Statement will be effective for the year ending June 30, 2015. In January 2013, GASB issued Statement No. 69, Government Combinations and Disposals

of Government Operations. This Statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations.

This Statement requires disclosures to be made about government combination and

disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions. This Statement will be effective for the year ending June 30, 2015.

GASB Statement No. 71, Pension Transitions for Contributions Made Subsequent to the

Measurement Date – an amendment of GASB Statement No. 68 was issued to address an issue regarding application of the transition provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. This Statement amends GASB Statement No. 68 to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any, made subsequent to the measurement date of the beginning net pension liability. This Statement will be effective for the year ending June 30, 2015.

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REQUIRED SUPPLEMENTARY INFORMATION

COUNTY OF SAN BENITO PUBLIC EMPLOYEE’S RETIREMENT SYSTEM (PERS) SCHEDULE OF FUNDING PROGRESS The tables below show a three-year analysis of the actuarial value of assets as a percentage of the actuarial accrued liability and the unfunded actuarial accrued liability as a percentage of the annual covered payroll as of June 30: Funded Status of Safety Employees UL as a Annual Percentage Valuation Accrued Actuarial Unfunded Funded Covered of Covered Date Liabilities Assets Liabilities Ratio Payroll Payroll 6/30/2013 $ 45,258,456 $ 33,293,071 $ 11,965,385 73.6% $ 4,647,803 257.4% 6/30/2012 $ 43,099,354 $ 29,389,045 $ 13,710,309 68.2% $ 5,436,666 252.2% 6/30/2011 $ 41,070,174 $ 29,260,646 $ 6,809,528 71.3% $ 5,813,712 117.1% Funded Status of PEPRA Safety Employees UL as a Annual Percentage Valuation Accrued Actuarial Unfunded Funded Covered of Covered Date Liabilities Assets Liabilities Ratio Payroll Payroll 6/30/2013 $ 8,819 $ 12,944 $ (4,125) 146.8% $ 123,884 – 6/30/2012 N/A 6/30/2011 N/A Funded Status of Miscellaneous Employees UL as a Annual Percentage Valuation Accrued Actuarial Unfunded Funded Covered of Covered Date Liabilities Assets Liabilities Ratio Payroll Payroll 6/30/2013 $ 125,360,857 $ 90,695,771 $ 34,665,086 72.3% $ 17,876,013 193.9% 6/30/2012 $ 118,815,278 $ 96,892,870 $ 21,922,408 81.5% $ 19,891,927 110.2% 6/30/2011 $ 113,742,014 $ 91,557,920 $ 22,184,094 80.5% $ 23,166,572 95.8%

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COUNTY OF SAN BENITO RETIREE HEALTHCARE PLAN (OPEB) SCHEDULE OF FUNDING PROGRESS Funded Status of Retiree Healthcare Plan UL as a Actuarial Actuarial Unfunded Annual Percentage Valuation Accrued Value of Actuarial Funded Covered of Covered Date Liabilities Assets Liabilities Ratio Payroll Payroll 6/30/2014 $ 30,241,842 $ 14,563,383 $ 15,678,459 48.2% $ 35,582,000 44.06% 6/30/2013 $ 36,752,366 $ 11,690,231 $ 25,062,135 31.8% $ 27,443,958 91.32% 6/30/2012 $ 38,236,685 $ 9,224,234 $ 29,012,451 24.1% $ 27,787,223 104.41% 6/30/2011 $ 34,663,524 $ 6,134,682 $ 28,528,842 17.7% $ 26,912,564 106.01%

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BUDGETARY PRINCIPLES

In accordance with Chapter 1, Division 3, Title 3, of the Government Code of the State of California, known as the “Budget Act,” the County adopts a budget for each fiscal year on or before October 2. Budgeted expenditures are enacted into law through the passage of an Appropriation Resolution. This resolution mandates the maximum authorized expenditures for the fiscal year and cannot be exceeded except by subsequent amendments to the budget by the County’s Board of Supervisors.

An operating budget is adopted each fiscal year from all Governmental Funds, the Capital Project Fund and the County’s Proprietary Fund. Expenditures are controlled at the object level within budget units for the County. The object level within a budget unit is the level at which expenditures may not legally exceed appropriations. Any amendments or transfers of appropriations between object levels within the same budget unit or between departments or funds are authorized by the County Administrator’s office and must be approved by the Board of Supervisors.

Supplementary appropriations normally financed by unanticipated revenues during the year must be approved by the Board of Supervisors. Pursuant to Board Resolution, the County Administrator is authorized to approve transfers and revision of appropriations under $25,000 within a single budget unit as deemed necessary and appropriate. Budgeted amounts in the budgetary financial schedules are reported as originally adopted and are amended during the fiscal year by resolutions approved by the Board of Supervisors.

The budget approved by the Board of Supervisors for the general fund includes budgeted expenditures and reimbursements for amounts disbursed on behalf of other Governmental Funds. Actual reimbursements for these items have been eliminated in the accompanying budgetary financial schedules. Accordingly, the related budgets for these items have also been eliminated in order to provide a meaningful comparison of actual and budgeted results of operations.

Budgets are adopted on a basis consistent with GAAP except for the following classifications:

• Proceeds from the sale of asset and the issuance of new debt are reported as revenues for budgetary purposes, however, for GAAP purposes are reported as other financing sources. For the fiscal year ending June 30, 2014, there were no such activities.

The budgets for the governmental funds may include an object level known as “intrafund transfers” in the charges for appropriations. This object level is an accounting mechanism used by the County to show reimbursements between operations within the same fund (an example would be the General Fund). Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary accounting in the General and Special Revenue Funds. Encumbrances outstanding at year-end are reported as reservations of fund balance since they do not constitute expenditures or liabilities. Encumbrances at year end are rebudgeted in the new year. For the fiscal year ending June 30, 2014, there were no recorded encumbrances outstanding at year end for any of the Governmental Funds.

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Budgetary Comparison ScheduleGeneral Fund

For the Year Ended June 30, 2014Variance withFinal Budget

Budgeted Amounts Positive

Original Final Actual Amounts (Negative)

FUND BALANCE, BEGINNING 13,350,071$ 13,350,071$ 13,237,262$ (112,809)$

RESOURCES (INFLOWS)

Taxes 13,325,525 13,325,525 14,277,919 952,394 Licenses and permits 840,820 840,820 988,892 148,072 Fines, forfeits and penalties 902,780 963,602 996,960 33,358 Use of money or property 255,450 255,450 224,861 (30,589) Aid from other governments 5,939,474 5,939,474 6,369,394 429,920 Charges for services 5,170,942 5,170,942 4,184,099 (986,843) Other Revenue 4,375,311 4,375,311 464,308 (3,911,003) Interfund Transfers In 2,392,040 2,392,040 1,678,977 (713,063)

Total Resources (Inflows) 33,202,342$ 33,263,164$ 29,185,410$ (4,077,754)$

CHARGES TO APPROPRIATIONS (OUTFLOWS)

General Government

Non‐Departmental

Services & Supplies 535,000 610,208 599,528 10,680 Other Charges ‐ 287,268 287,268 ‐ Transfers Out 1,060,935 710,862 544,892 165,970 Total Non‐Departmental 1,595,935 1,608,338 1,431,688 176,650

Board of Supervisors

Salaries & Benefits 365,544 365,544 365,120 424 Services & Supplies 43,250 43,250 46,183 (2,933) Other Charges 300 300 ‐ 300 Indirect Cost 38,880 38,880 38,880 ‐ Total 447,974 447,974 450,183 (2,209)

Clerk of the Board of Supervisors

Salaries & Benefits 128,747 128,747 132,334 (3,587) Services & Supplies 7,985 7,985 3,163 4,822 Indirect Cost 67,721 67,721 67,721 ‐ Total 204,453 204,453 203,218 1,235

Administrative Officer

Salaries & Benefits 516,702 516,702 408,629 108,073 Services & Supplies 18,100 18,100 32,915 (14,815) Indirect Cost (235,000) (235,000) (512,077) 277,077 Total 299,802 299,802 (70,533) 370,335

Information Technology

Salaries & Benefits 419,143 404,143 287,967 116,176 Services & Supplies 73,550 73,550 102,419 (28,869) Indirect Cost (115,000) (115,000) (431,179) 316,179 Total 377,693 362,693 (40,793) 403,486

(Continued)

54






Geographical Information Systems


County Counsel

Salaries & Benefits 569,731 569,731 541,564 28,167 Services & Supplies 40,705 40,705 37,058 3,647 Indirect Cost (234,431) (234,431) (824,083) 589,652 Total 376,005 376,005 (245,461) 621,466

County Auditor/Controller

Salaries & Benefits 941,329 941,329 820,360 120,969 Services & Supplies 167,755 167,755 145,717 22,038 Indirect Cost (395,900) (395,900) (813,955) 418,055 Total 713,184 713,184 152,122 561,062

County Treasurer

Salaries & Benefits 282,066 282,066 265,272 16,794 Services & Supplies 35,125 35,125 34,831 294 Indirect Cost 16,085 16,085 16,085 ‐ Total 333,276 333,276 316,188 17,088

County Assessor

Salaries & Benefits 1,182,612 1,182,612 1,216,548 (33,936) Services & Supplies 140,840 140,840 141,936 (1,096) Indirect Cost 167,370 167,370 167,370 ‐ Total 1,490,822 1,490,822 1,525,854 (35,032)

Tax Collector

Salaries & Benefits 291,981 291,981 243,595 48,386 Services & Supplies 49,588 49,588 35,799 13,789 Indirect Cost 29,892 29,892 29,892 ‐ Total 371,461 371,461 309,286 62,175

Internal Services

Salaries & Benefits 306,496 306,496 228,140 78,356 Services & Supplies 155,875 155,875 242,349 (86,474) Indirect Cost (274,406) (274,406) (398,076) 123,670 Total 187,965 187,965 72,413 115,552

Elections


(Continued)

55






Maintenance ‐ Buildings & Grounds

Salaries & Benefits 170,413 170,413 255,778 (85,365) Services & Supplies 475,394 475,394 363,468 111,926 Fixed Assets 20,000 20,000 8,410 11,590 Indirect Cost ‐ ‐ (618,335) 618,335 Total 665,807 665,807 9,321 656,486

Risk Management

Salaries & Benefits ‐ ‐ 14,378 (14,378) Services & Supplies ‐ ‐ 6,050 (6,050) Other Charges 1,753,291 (323,014) 2,076,305 Indirect Cost ‐ ‐ (1,054,424) 1,054,424 Total ‐ 1,753,291 (1,357,010) 3,110,301

Total General Government 7,744,698 9,552,152 3,397,650 6,154,502

Public Protection

Grand Jury

Services & Supplies 19,500 19,500 19,435 65 Indirect Cost 6,950 6,950 6,950 ‐ Total 26,450 26,450 26,385 65

District Attorney

Salaries & Benefits 1,053,630 1,053,630 1,054,604 (974) Services & Supplies 62,445 62,445 71,269 (8,824) Indirect Cost 109,612 109,612 109,612 ‐ Total 1,225,687 1,225,687 1,235,485 (9,798)

Public Defender

Services & Supplies 1,021,132 1,021,132 840,888 180,244 Indirect Cost 12,834 12,834 12,834 ‐ Total 1,033,966 1,033,966 853,722 180,244

Sheriff ‐ Operations Division

Salaries & Benefits 3,510,169 3,510,169 3,347,216 162,953 Services & Supplies 431,735 431,735 435,211 (3,476) Fixed Assets ‐ 47,711 49,701 (1,990) Indirect Cost 753,355 753,355 753,355 ‐ Total 4,695,259 4,742,970 4,585,483 157,487

911 Communications Center

Salaries & Benefits 63,652 63,652 43,762 19,890 Services & Supplies 526,993 526,993 511,035 15,958 Total 590,645 590,645 554,797 35,848

(Continued)

56






UNET ‐ Anti‐Drug Task Force

Salaries & Benefits ‐ ‐ ‐ ‐ Services & Supplies 55,987 107,297 99,206 8,091 Indirect Cost 5,509 5,509 5,509 ‐ Total 61,496 112,806 104,715 8,091

Sheriff's Grant

Salaries & Benefits 303,364 303,364 320,758 (17,394) Services & Supplies 17,411 17,411 38,538 (21,127) Total 320,775 320,775 359,296 (38,521)

Corrections Division ‐ Jail

Salaries & Benefits 3,175,905 3,179,905 3,039,657 140,248 Services & Supplies 1,350,185 1,350,185 1,375,960 (25,775) Fixed Assets ‐ 6,000 13,248 (7,248) Indirect Cost 168,514 168,514 158,728 9,786 Total 4,694,604 4,704,604 4,587,593 117,011

Probation Department

Salaries & Benefits 1,845,200 1,845,200 1,623,080 222,120 Services & Supplies 259,415 259,415 330,024 (70,609) Other Charges 1,000 1,000 49 951 Fixed Assets ‐ ‐ 38,866 (38,866) Indirect Cost 192,111 192,111 192,111 ‐ Total 2,297,726 2,297,726 2,184,130 113,596

Juvenile Detention Facility

Salaries & Benefits 1,152,611 1,152,611 1,132,783 19,828 Services & Supplies 346,900 346,900 312,654 34,246 Other Charges 25,000 25,000 586 24,414 Indirect Cost 79,703 79,703 79,703 ‐ Total 1,604,214 1,604,214 1,525,726 78,488

Gang Prevention

Salaries & Benefits 179,325 179,325 144,526 34,799 Services & Supplies 23,570 23,570 8,941 14,629 Fixed Assets ‐ ‐ 999 (999) Indirect Cost 9,047 9,047 9,047 ‐ Total 211,942 211,942 163,513 48,429

Agricultural Commissioner

Salaries & Benefits 702,687 702,687 724,888 (22,201) Services & Supplies 67,200 67,200 58,906 8,294 Indirect Cost 67,876 67,876 67,876 ‐ Total 837,763 837,763 851,670 (13,907)

(Continued)

57






Public Works ‐ Administration & Engineering

Salaries & Benefits 371,356 371,356 235,074 136,282 Services & Supplies 47,383 47,383 50,614 (3,231) Indirect Cost 15,741 15,741 15,741 ‐ Total 434,480 434,480 301,429 133,051

County Clerk


County Recorder

Salaries & Benefits 262,049 262,049 205,946 56,103 Services & Supplies 149,931 149,931 101,414 48,517 Indirect Cost 44,690 44,690 39,924 4,766 Total 456,670 456,670 347,284 109,386

Coroner

Services & Supplies 77,970 77,970 62,582 15,388 Other Charges 4,000 4,000 3,168 832 Indirect Cost 2,436 2,436 2,436 ‐ Total 84,406 84,406 68,186 16,220

Public Administrator

Services & Supplies 5,160 5,160 3,767 1,393 Indirect Cost 4,670 4,670 4,670 ‐ Total 9,830 9,830 8,437 1,393

Office of Emergency Services


Planning and Building Department

Salaries & Benefits 736,587 736,587 564,785 171,802 Services & Supplies 207,750 207,750 254,890 (47,140) Fixed Assets 3,286 3,286 ‐ 3,286 Indirect Cost 274,741 274,741 285,305 (10,564) Total 1,222,364 1,222,364 1,104,980 117,384

Animal Control & Veterinarian Services

Services & Supplies 236,000 236,000 252,336 (16,336) Indirect Cost 4,806 4,806 4,806 ‐ Total 240,806 240,806 257,142 (16,336)

(Continued)

58






Housing & Economic Development

Salaries & Benefits 58,967 58,967 43,441 15,526 Services & Supplies 10,000 10,000 10,550 (550) Other Charges 100,000 100,000 ‐ 100,000 Indirect Cost 5,803 5,803 5,803 ‐ Total 174,770 174,770 59,794 114,976

Abandoned Vehicle Abatement

Salaries & Benefits 49,911 49,911 49,729 182 Services & Supplies 4,200 4,200 4,572 (372) Indirect Cost 2,245 2,245 2,245 ‐ Total 56,356 56,356 56,546 (190)

General Plan Update

Salaries & Benefits ‐ ‐ 34,262 (34,262) Services & Supplies ‐ ‐ 71,057 (71,057) Total ‐ ‐ 105,319 (105,319)

Land Development Projects

Services & Supplies 581,672 581,672 217,244 364,428 Total 581,672 581,672 217,244 364,428

COG/Transit

Salaries & Benefits 777,495 777,495 817,280 (39,785) Indirect Cost 25,000 25,000 24,551 449 Total 802,495 802,495 841,831 (39,336)

Total Public Protection 21,998,796 22,107,817 20,690,629 1,417,188

Public Assistance

County Medical Services Program

Other Charges 37,018 37,018 37,018 ‐ Indirect Cost 511 511 511 ‐ Total 37,529 37,529 37,529 ‐

Aid to Indigents

Salaries & Benefits ‐ ‐ 1,831 (1,831) Services & Supplies ‐ ‐ 15 (15) Other Charges 5,000 100,000 165,090 (65,090) Total 5,000 100,000 166,936 (66,936)

(Continued)

59






Contributions to Community Organizations

Other Charges 78,000 78,000 74,343 3,657 Indirect Cost 755 755 755 ‐ Total 78,755 78,755 75,098 3,657

Veterans Services

Salaries & Benefits ‐ ‐ 2,185 Services & Supplies 76,877 76,877 74,025 2,852 Indirect Cost (3,730) (3,730) (3,730) ‐ Total 73,147 73,147 72,480 2,852

Total Public Assistance 194,431 289,431 352,043 (60,427)

Education

First Five

Salaries & Benefits 185,395 185,395 141,152 44,243 Other Charges ‐ ‐ ‐ ‐ Indirect Cost 35,000 35,000 3,800 31,200 Total 220,395 220,395 144,952 75,443

County Library

Salaries & Benefits 559,892 559,892 567,947 (8,055) Services & Supplies 66,050 91,050 92,017 (967) Indirect Cost 157,218 157,218 157,218 ‐ Total 783,160 808,160 817,182 (9,022)

Agricultural Extension

Services & Supplies 28,950 28,950 27,031 1,919 Indirect Cost (4,007) (4,007) (4,007) Total 24,943 24,943 23,024 1,919

Total Education 1,028,498 1,053,498 985,158 68,340

Parks and Recreation

Veterans Memorial Park

Salaries & Benefits 54,292 54,292 58,547 (4,255) Services & Supplies 50,045 50,045 4,723 45,322 Fixed Assets 10,000 10,000 ‐ 10,000 Indirect Cost (4,122) (4,122) (4,122) ‐ Total 110,215 110,215 59,148 51,067

(Continued)

60






Historical & San Justo Reservoir Parks


Total Parks and Recreation 188,385 188,385 125,063 63,322

Debt Service

Long Term Debt Repayment

Other Financing Uses 370,000 370,000 363,924 6,076 Total Debt Service 370,000 370,000 363,924 6,076

Contingencies

General Fund Contingency

Miscellaneous 1,093,166 1,076,838 ‐ 1,076,838 Total Contingency 1,093,166 1,076,838 ‐ ‐

Total Charges to Appropriations (Outflows) 32,617,974 34,638,121 25,914,467 7,649,001

Net Change in Fund Balance 584,368 (1,374,957) 3,270,943 4,645,900

Ending Fund Balance, 06/30/2014 13,934,439$ 11,975,114$ 16,508,205$ 4,533,091$

(Concluded)

61


Budgetary Comparison ScheduleHuman Services Agency Fund Special Revenue Fund


Variance withFinal Budget



Revenues:

Use of money or property 15,000$ 15,000$ 18,790$ 3,790$ Aid from other governments 15,495,562 15,495,562 15,951,314 455,752 Other revenue 308,195 308,195 54,506 (253,689) Total Revenues 15,818,757 15,818,757 16,024,610 205,853

Expenditures:

Current: Salaries & Benefits 7,232,872 7,232,872 6,183,517 1,049,355 Services & Supplies 960,429 960,429 1,128,750 (168,321) Other Charges 8,149,500 8,149,500 6,935,561 1,213,939 Capital Assets 137,500 137,500 19,522 117,978 Indirect Costs 1,032,488 1,032,488 1,225,379 (192,891) Total Expenditures 17,512,789 17,512,789 15,492,731 2,020,058 Excess (deficiency) of revenues over expenditures (1,694,032) (1,694,032) 531,879 2,225,911


Transfers in ‐ ‐ 165,195 165,195 Transfers out (1,600,000) (1,600,000) (2,710,814) (1,110,814) Total other financing sources (uses) (1,600,000) (1,600,000) (2,545,619) (945,619)

Net change in fund balance (3,294,032) (3,294,032) (2,013,740) 1,280,292

Fund balance, beginning of year 4,428,638 4,428,638 4,428,638 ‐

Fund balance, end of year 1,134,606$ 1,134,606$ 2,414,898$ 1,280,292$

62


Budgetary Comparison ScheduleRoad Fund Special Revenue FundFor the Year Ended June 30, 2014


Budgeted Amounts 210 Positive


Revenues:

Use of money or property 4 20,000$ 20,000$ 12,580$ (7,420)$ Aid from other governments 4 5,950,238 5,950,238 4,395,913 (1,554,325) Other revenue 39,314,704 39,314,704 99,283 (39,215,421) Total Revenues 45,284,942 45,284,942 4,507,776 (40,777,166)

Expenditures:

Current: Salaries & Benefits 1,700,432 1,700,432 1,560,298 140,134 Services & Supplies 942,400 942,400 472,977 469,423 Other Charges 187,319 187,319 301,379 (114,060) Capital Assets 44,551,061 44,551,061 2,963,262 41,587,799 Total Expenditures 47,381,212 47,381,212 5,297,916 42,083,296 Excess (deficiency) of revenues over expenditures (2,096,270) (2,096,270) (790,140) 1,306,130

Other Financing Sources (Uses): Transfers in 2,096,270 2,096,270 ‐ (2,096,270) Transfers out ‐ ‐ ‐ ‐ Total other financing sources (uses) 2,096,270 2,096,270 ‐ (2,096,270)

Net change in fund balances ‐ ‐ (790,140) (790,140)

Fund balances, beginning of year 3 2,366,659 2,366,659 2,366,658 (1)

Fund balances, end of year 2,366,659$ 2,366,659$ 1,576,518$ (790,141)$

63


Budgetary Comparison ScheduleMental Health Fund Special Revenue Fund





Revenues:

Use of money or property ‐$ ‐$ 26,232$ 26,232$ Aid from other governments 5,642,448 5,642,448 5,632,289 (10,159) Charges for services 914,818 914,818 134,475 (780,343) Other revenue 1,126,272 1,126,272 ‐ (1,126,272) Total Revenues 7,683,538 7,683,538 5,792,996 (1,890,542)

Expenditures:

Current: Salaries & Benefits 4,419,965 4,419,965 3,582,734 837,231 Services & Supplies 1,578,400 1,578,400 1,559,073 19,327 Other Charges 1,266,067 1,266,067 306,423 959,644 Indirect Costs 419,106 419,106 299,430 119,676 Total Expenditures 7,683,538 7,683,538 5,747,660 1,935,878 Excess (deficiency) of revenues over expenditures ‐ ‐ 45,336 45,336


Transfer In ‐ ‐ 45,772 45,772 Transfer Out (1,080,000) (1,080,000) (114,933) 965,067 Total other financing sources (uses) (1,080,000) (1,080,000) (69,161) 1,010,839

Net change in fund balance (1,080,000) (1,080,000) (23,825) 1,056,175

Fund balance, beginning of year 1,714,799 1,714,799 1,714,799 ‐

Fund balance, end of year 634,799$ 634,799$ 1,690,974$ 1,056,175$

64

SUPPLEMENTARY INFORMATION


Combining Balance SheetNonmajor Special Revenue Funds

June 30, 2014

Emergency Migrant

Fish and Victim Medical Labor Mosquito Game UNET Witness Services Camp CSWD Abatement

AssetsCash and investments in Treasury 2,048$ ‐$ ‐$ 137,187$ 213,583$ ‐$ 50,042$ Restricted cash and investmentsReceivables ‐ 4,750 87,757 312,285 ‐ Inventories and other assets ‐ ‐ ‐ ‐ ‐ 2,000 ‐ Total Assets 2,048 ‐ ‐ 141,937 301,340 314,285 50,042

LiabilitiesAccounts payable and accrued liabilities ‐ ‐ 1,742 29,763 12,501 22,624 2,996 Due to other funds ‐ ‐ 36,439 ‐ ‐ 284,773 ‐ Other liabilities ‐ ‐ ‐ ‐ 15,679 ‐ ‐ Unearned revenues ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Liabilities ‐ ‐ 38,181 29,763 28,180 307,397 2,996

Deferred Inflows of ResourcesUnavailable revenues ‐ ‐ ‐ ‐ ‐ ‐ ‐

Fund Balances Restricted ‐ ‐ ‐ ‐ ‐ ‐ Assigned 2,048 ‐ ‐ 112,174 273,160 6,888 47,046 Unassigned ‐ ‐ (38,181) ‐ ‐ ‐ ‐ Total Fund Balances 2,048 ‐ (38,181) 112,174 273,160 6,888 47,046 Total Liabilities, Deferred Inflows of Resources and Fund Balance 2,048$ ‐$ ‐$ 141,937$ 301,340$ 314,285$ 50,042$


65



June 30, 2014

AssetsCash and investments in TreasuryRestricted cash and investmentsReceivablesInventories and other assets Total Assets

LiabilitiesAccounts payable and accrued liabilitiesDue to other fundsOther liabilitiesUnearned revenues Total Liabilities

Deferred Inflows of ResourcesUnavailable revenues

Fund Balances Restricted Assigned Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources and Fund Balance

County

Service Family Public Substance Public Public SafetyAreas Support Authority Abuse Health Realignment Cal Fire

1,010,474$ 68,777$ 285,941$ 39,953$ 939,229$ 1,846,198$ 273,697$ ‐$

‐ ‐ 103,831 88,844 20,885 50,000 5,761 ‐ ‐ ‐ ‐ ‐ ‐ ‐

1,010,474 68,777 389,772 128,797 960,114 1,896,198 279,458

76,928 31,990 1,607 26,652 153,358 ‐ 278,743 ‐ ‐ ‐ ‐ ‐ ‐ ‐

4,316 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,889,015 ‐

81,244 31,990 1,607 26,652 153,358 1,889,015 278,743

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,366,693 36,787 388,165 102,145 806,756 7,183 715 (437,463) ‐ ‐ ‐ ‐ ‐ ‐ 929,230 36,787 388,165 102,145 806,756 7,183 715

1,010,474$ 68,777$ 389,772$ 128,797$ 960,114$ 3,785,213$ 279,458$


66



June 30, 2014





Tobacco County Fire Sheriff Equip Jail & Juvenile Habatat Road Equip. Road CapitalSettlement Impact Impact Impact Impact Impr. Impact Project

‐$ 527,250$ 127,135$ ‐$ 978,682$ 1,131,469$ 2,563,712$ 4,837,317

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

4,837,317 527,250 127,135 ‐ 978,682 1,131,469 2,563,712

‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,029,326 ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

3,029,326 ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ 2,563,712 1,807,991 527,250 127,135 ‐ 978,682 1,131,469 ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,807,991 527,250 127,135 ‐ 978,682 1,131,469 2,563,712

4,837,317$ 527,250$ 127,135$ ‐$ 978,682$ 1,131,469$ 2,563,712$


67



June 30, 2014





Total

Santa Ana Traffic Inclusionary Special RevenueParks Storm Drain Impact Housing Home Funds

2,278,346$ 379,242$ 3,194,603$ 11,916$ 1,061,334$ 17,120,818$ 4,837,317

‐ ‐ ‐ ‐ ‐ 674,113 ‐ ‐ ‐ ‐ ‐ 2,000

2,278,346 379,242 3,194,603 11,916 1,061,334 22,634,248

‐ ‐ ‐ ‐ ‐ 638,902 ‐ ‐ ‐ ‐ ‐ 3,350,540 ‐ ‐ ‐ ‐ ‐ 19,995 ‐ ‐ ‐ ‐ ‐ 1,889,015 ‐ ‐ ‐ ‐ ‐ 5,898,452

‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ 2,563,712 2,278,346 379,242 3,194,603 11,916 1,061,334 14,647,728

‐ ‐ ‐ ‐ ‐ (475,644) 2,278,346 379,242 3,194,603 11,916 1,061,334 16,735,796

2,278,346$ 379,242$ 3,194,603$ 11,916$ 1,061,334$ 22,634,248$


68


Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Special Revenue FundsFor the Year Ended June 30, 2014

Emergency Migrant Fish and Victim Medical Labor MosquitoGame UNET Witness Services Camp CSWD Abatement

Revenues:

Taxes ‐$ ‐$ ‐$ 320,944$ ‐$ ‐$ 191,447$ Fines, forfeitures and penalties 728 ‐ ‐ 16,578 ‐ ‐ ‐ Use of money and property 14 ‐ ‐ 640 ‐ 2,994 140 Aid from other governments ‐ ‐ 86,281 ‐ 395,715 1,707,837 ‐

Charges for services ‐ ‐ 8,418 84,960 ‐ ‐ ‐ Other revenue ‐ ‐ ‐ ‐ 8,763 46,908 ‐ Total revenues 742 ‐ 94,699 423,122 404,478 1,757,739 191,587 Expenditures:

Current: General government ‐ ‐ ‐ ‐ ‐ ‐ ‐ Public protection 2,318 ‐ 118,984 498,070 ‐ ‐ ‐ Public ways and facilities ‐ ‐ ‐ ‐ ‐ ‐ ‐ Health and sanitation ‐ ‐ ‐ ‐ ‐ ‐ 191,747 Public assistance ‐ ‐ ‐ ‐ 472,970 1,767,919 ‐ Recreation and culture ‐ ‐ ‐ ‐ ‐ ‐ Capital outlay ‐ ‐ ‐ ‐ ‐ ‐ ‐ Debt Service: Principal Interest Total expenditures 2,318 ‐ 118,984 498,070 472,970 1,767,919 191,747

Excess (deficiency) of revenues over (under) expenditures (1,576) ‐ (24,285) (74,948) (68,492) (10,180) (160) Other Financing Sources (uses):

Issuance of debt ‐ ‐ ‐ ‐ ‐ ‐ ‐ Transfers in ‐ ‐ ‐ ‐ ‐ ‐ 3,925 Transfers out ‐ (35,573) ‐ ‐ ‐ ‐ Total other financing sources (uses) ‐ (35,573) ‐ ‐ ‐ ‐ 3,925

Net Change in Fund Balance (1,576) (35,573) (24,285) (74,948) (68,492) (10,180) 3,765

Fund balances, beginning of year 3,624 35,573 (13,896) 187,122 341,652 17,068 43,281

Fund balances, end of year 2,048$ ‐$ (38,181)$ 112,174$ 273,160$ 6,888$ 47,046$


69



Revenues:

Taxes Fines, forfeitures and penalties Use of money and property Aid from other governments

Charges for services Other revenue Total revenuesExpenditures:

Current: General government

Public protection Public ways and facilities Health and sanitation Public assistance Recreation and culture Capital outlay Debt Service: Principal Interest Total expenditures

Excess (deficiency) of revenues over (under) expendituresOther Financing Sources (uses):

Issuance of debt Transfers in Transfers out Total other financing sources (uses)

Net Change in Fund Balance

Fund balances, beginning of year

Fund balances, end of year

CountyService Family Public Substance Public Public SafetyAreas Support Authority Abuse Health Realignment Cal Fire

90,618$ ‐$ ‐$ ‐$ ‐$ ‐$ 804,585$ ‐ ‐ ‐ ‐ ‐ ‐ ‐

3,080 356 160 ‐ 1,460 7,183 665 922 1,513,909 369,847 1,001,464 2,330,441 ‐ 24,530

791,694 ‐ ‐ 4,525 555,888 ‐ ‐ ‐ ‐ ‐ ‐ 2,408 ‐ ‐

886,314 1,514,265 370,007 1,005,989 2,890,197 7,183 829,780

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,843,456 ‐ ‐ ‐ ‐ 1,120,140

525,885 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,215,756 2,327,490 ‐ ‐ ‐ ‐ 1,447,346 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

525,885 1,843,456 1,447,346 1,215,756 2,327,490 ‐ 1,120,140

360,429 (329,191) (1,077,339) (209,767) 562,707 7,183 (290,360)

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,075,096 ‐ ‐ ‐ 180,000 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,075,096 ‐ ‐ ‐ 180,000

360,429 (329,191) (2,243) (209,767) 562,707 7,183 (110,360)

568,801 365,978 390,408 311,912 244,049 ‐ 111,075

929,230$ 36,787$ 388,165$ 102,145$ 806,756$ 7,183$ 715$


70



Revenues:










Tobacco County Fire Sheriff Equip Jail & Juvenile Habitat Road Equip. Road Capital

Settlement Impact Impact Impact Impact Impr. Impact Project Parks

‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3,845 483 79 4,498 5,657 11,901 13,299 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ 33,676 40,782 43,325 15,846 47,002 2,551,811 128,718 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 37,521 41,265 43,404 20,344 52,659 2,563,712 142,017

10,771 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

10,771 ‐ ‐ ‐ ‐ ‐ ‐ ‐

(10,771) 37,521 41,265 43,404 20,344 52,659 2,563,712 142,017

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

(328,867) (324,575) ‐ (43,404) ‐ (116,202) ‐ (661,873) (328,867) (324,575) ‐ (43,404) ‐ (116,202) ‐ (661,873)

(339,638) (287,054) 41,265 ‐ 20,344 (63,543) 2,563,712 (519,856)

2,147,629 814,304 85,870 ‐ 958,338 1,195,012 ‐ 2,798,202

1,807,991$ 527,250$ 127,135$ ‐$ 978,682$ 1,131,469$ 2,563,712$ 2,278,346$


71



Revenues:










TotalSanta Ana Traffic Inclusionary Special RevenueStorm Drain Impact Housing Home Funds

‐$ ‐$ ‐$ ‐$ 1,407,594$ ‐ ‐ ‐ ‐ 17,306

1,700 14,516 55 3,124 75,849 ‐ ‐ ‐ ‐ 7,430,946

24,120 111,481 ‐ ‐ 4,442,246 ‐ ‐ ‐ 3,800 61,879

25,820 125,997 55 6,924 13,435,820

‐ ‐ ‐ ‐ 10,771 ‐ ‐ ‐ ‐ 3,582,968 ‐ ‐ ‐ ‐ 525,885 ‐ ‐ ‐ ‐ 3,734,993 ‐ ‐ ‐ ‐ 3,688,235

‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ ‐

‐ ‐ ‐ ‐ 11,542,852

25,820 125,997 55 6,924 1,892,968

‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,259,021 ‐ ‐ ‐ ‐ (1,510,494) ‐ ‐ ‐ ‐ (251,473)

25,820 125,997 55 6,924 1,641,495 353,422 3,068,606 11,861 1,054,410 15,094,301

379,242$ 3,194,603$ 11,916$ 1,061,334$ 16,735,796$


72


Budgetary Comparison ScheduleFish and Game Special Revenue FundFor the Year Ended June 30, 2014




Revenues:

Fines, forfeits and penalties 300$ 300$ 728$ 428$ Use of money or property 10 10 14 4 Total Revenues 310 310 742 432

Expenditures:

Current: Other Charges 700 700 2,318 (1,618) Total Expenditures 700 700 2,318 (1,618) Excess (deficiency) of revenues over expenditures (390) (390) (1,576) (1,186)

Net change in fund balance (390) (390) (1,576) (1,186)

Fund balance, beginning of year 3,624 3,624 3,624 ‐

Fund balance, end of year 3,234$ 3,234$ 2,048$ (1,186)$

73


Budgetary Comparison ScheduleVictim Witness Special Revenue FundFor the Year Ended June 30, 2014




Revenues:

Aid from other governments 113,176$ 113,176$ 86,281$ (26,895)$ Charges for services ‐ ‐ 8,418 8,418 Other revenue 6,000 6,000 ‐ (6,000) Total Revenues 119,176 119,176 94,699 (24,477)

Expenditures:

Current: Salaries & Benefits 116,797 116,797 110,150 6,647 Services & Supplies 2,535 2,535 2,470 65 Other Charges ‐ ‐ 6,364 (6,364) Indirect Costs 6,483 6,483 ‐ 6,483 Total Expenditures 125,815 125,815 118,984 6,830 Excess (deficiency) of revenues over expenditures (6,639) (6,639) (24,285) (17,647)

Net change in fund balance (6,639) (6,639) (24,285) (17,647)

Fund balance, beginning of year (13,896) (13,896) (13,896) ‐

Fund balance, end of year (20,535)$ (20,535)$ (38,181)$ (17,647)$

74


Budgetary Comparison ScheduleEmergency Medical Services Special Revenue Fund





Revenues:

Taxes 321,986$ 321,986$ 320,944$ (1,042)$ Fines, forfeits and penalties ‐ ‐ 16,578 16,578 Use of money or property 350 350 640 290 Charges for services 18,000 18,000 84,960 66,960 Other revenue 122,368 122,368 ‐ (122,368) Total Revenues 462,704 462,704 423,122 (39,582)

Expenditures:

Current: Salaries & Benefits 357,861 357,861 380,098 (22,237) Services & Supplies 102,443 102,443 87,883 14,560 Other Charges 9,000 9,000 30,090 (21,090)

30,723 30,723 ‐ 30,723 Total Expenditures 500,027 500,027 498,070 1,956 Excess (deficiency) of revenues over expenditures (37,323) (37,323) (74,948) (37,626)




75


Budgetary Comparison ScheduleMigrant Labor Camp Special Revenue Fund





Revenues:

Aid from other governments 428,155$ 428,155$ 395,715$ (32,440)$ Other revenue ‐ ‐ 8,763 8,763 Total Revenues 428,155 428,155 404,478 (23,677)

Expenditures:

Current: Salaries & Benefits 330,383 330,383 222,561 107,822 Services & Supplies 145,890 145,890 231,246 (85,356) Other Charges ‐ ‐ 19,355 (19,355) Indirect Costs 19,412 19,412 ‐ 19,412 Total Expenditures 495,685 495,685 473,163 22,522 Excess (deficiency) of revenues over expenditures (67,530) (67,530) (68,685) (1,155)




76


Budgetary Comparison ScheduleCommunity Services Workforce Development (CSWD) Special Revenue Fund





Revenues:

Use of money or property ‐$ ‐$ 2,994$ 2,994$ Aid from other governments 1,997,236 1,997,236 1,707,837 (289,399) Other revenue ‐ ‐ 46,908 46,908 Total Revenues 1,997,236 1,997,236 1,757,739 (239,497)

Expenditures:

Current: Salaries & Benefits 954,368 954,368 1,041,261 (86,893) Services & Supplies 353,433 353,433 152,833 200,600 Other Charges 604,665 604,665 573,826 30,839 Indirect Costs 84,770 84,770 ‐ 84,770 Total Expenditures 1,997,236 1,997,236 1,767,919 229,316 Excess (deficiency) of revenues over expenditures ‐ ‐ (10,180) (10,181)

Net change in fund balance ‐ ‐ (10,180) (10,181)



77


Budgetary Comparison Schedule Mosquito Abatement Special Revenue Fund





Revenues:

Taxes 194,800$ 194,800$ 191,447$ (3,353)$ Use of money or property ‐ ‐ 140 140 Other revenue 3,925 3,925 ‐ (3,925) Total Revenues 198,725 198,725 191,587 (7,138)

Expenditures:

Current: Salaries & Benefits 164,154 164,154 136,591 27,563 Services & Supplies 49,000 49,000 42,311 6,689 Other Charges ‐ ‐ 12,845 (12,845) Indirect Costs 8,166 8,166 ‐ 8,166 Total Expenditures 221,320 221,320 191,747 29,574 Excess (deficiency) of revenues over expenditures (22,595) (22,595) (160) 22,436


Transfer In ‐ ‐ 3,925 (3,925) Total other financing sources (uses) ‐ ‐ 3,925 (3,925)

Net change in fund balance (22,595) (22,595) 3,765 18,511


Fund balance, end of year 20,686$ 20,686$ 47,046$ 18,511$

78


Budgetary Comparison ScheduleCounty Service Areas (CSAs) Special Revenue Fund





Revenues:

Taxes 854,865$ 854,865$ 90,618$ 764,247$ Use of money or property 6,446 6,446 3,080 3,366 Aid from other governments ‐ ‐ 922 (922) Charges for services ‐ ‐ 791,694 (791,694) Total Revenues 861,311 861,311 886,314 (25,003)

Expenditures:

Current: Salaries & Benefits 131,841 131,841 43,349 88,492 Services & Supplies 746,185 746,185 375,818 370,367 Other Costs ‐ ‐ 43,042 (43,042) Capital Assets ‐ ‐ 63,676 (63,676) Debt Service 200,252 200,252 ‐ 200,252 Total Expenditures 1,078,278 1,078,278 525,885 552,393 Excess (deficiency) of revenues over expenditures (216,967) (216,967) 360,429 527,390


Issuance of debt 282,298 282,298 ‐ (282,298) Total other financing sources (uses) 1,343,861 1,343,861 ‐ (282,298)

Net change in fund balance 1,126,894 1,126,894 360,429 245,092


Fund balance, end of year 1,695,695$ 1,695,695$ 929,230$ 245,092$

79


Budgetary Comparison ScheduleFamily Support Special Revenue Fund





Revenues:

Use of money or property ‐$ ‐$ 356$ 356$ Aid from other governments 1,885,134 1,885,134 1,513,909 (371,225) Total Revenues 1,885,134 1,885,134 1,514,265 (370,869)

Expenditures:

Current: Salaries & Benefits 1,584,032 1,584,032 1,555,415 28,617 Services & Supplies 208,850 208,850 194,529 14,321 Other Charges ‐ ‐ 93,513 (93,513) Indirect Costs 92,252 92,252 ‐ 92,252 Total Expenditures 1,885,134 1,885,134 1,843,456 41,678 Excess (deficiency) of revenues over expenditures ‐ ‐ (329,191) (329,191)




80


Budgetary Comparison SchedulePublic Authority Special Revenue Fund





Revenues:

Use of money or property 1,000$ 1,000$ 160$ (840)$ Aid from other governments 1,233,052 1,233,052 369,847 (863,205) Other revenue 300,000 300,000 ‐ (300,000) Total Revenues 1,534,052 1,534,052 370,007 (1,164,045)

Expenditures:

Current: Salaries & Benefits 119,570 119,570 135,003 (15,433) Services & Supplies 21,582 21,582 17,672 3,910 Other Charges 1,354,000 1,354,000 1,294,672 59,328 Indirect Costs 38,900 38,900 ‐ 38,900 Total Expenditures 1,534,052 1,534,052 1,447,346 86,706 Excess (deficiency) of revenues over expenditures ‐ ‐ (1,077,339) (1,077,339)


Transfers in ‐ ‐ 1,075,096 1,075,096 Total other financing sources (uses) ‐ ‐ 1,075,096 1,075,096




81


Budgetary Comparison ScheduleSubstance Abuse Special Revenue Fund





Revenues:

Aid from other governments 1,313,508$ 1,313,508$ 1,001,464$ (312,044)$ Charges for services 9,962 9,962 4,525 (5,437) Other revenue 80,060 80,060 ‐ (80,060) Total Revenues 1,403,530 1,403,530 1,005,989 (397,541)

Expenditures:

Current: Salaries & Benefits 1,073,040 1,073,040 927,359 145,681 Services & Supplies 204,990 204,990 167,928 37,062 Other Charges 60,000 60,000 59,584 416 Indirect Costs 65,500 65,500 60,885 4,615 Total Expenditures 1,403,530 1,403,530 1,215,756 187,774 Excess (deficiency) of revenues over expenditures ‐ ‐ (209,767) (209,767)




82


Budgetary Comparison SchedulePublic Health Special Revenue FundFor the Year Ended June 30, 2014




Revenues:

Use of money or property ‐$ ‐$ 1,460$ 1,460$ Aid from other governments 2,356,662 2,356,662 2,330,441 (26,221) Charges for services 401,180 401,180 555,888 154,708 Other revenue 78,861 78,861 2,408 (76,453) Total Revenues 2,836,703 2,836,703 2,890,197 53,494

Expenditures:

Current: Salaries & Benefits 2,218,097 2,218,097 1,954,128 263,969 Services & Supplies 355,194 355,194 286,375 68,819 Other Charges 144,300 144,300 53,007 91,293 Indirect Costs 152,097 152,097 33,980 118,117 Total Expenditures 2,869,688 2,869,688 2,327,490 542,198 Excess (deficiency) of revenues over expenditures (32,985) (32,985) 562,707 595,692

Net change in fund balance (32,985) (32,985) 562,707 595,692


Fund balance, end of year 211,064$ 211,064$ 806,756$ 595,692$

83


Budgetary Comparison ScheduleCal Fire Special Revenue Fund





Revenues:

Taxes 826,900$ 826,900$ 804,585$ (22,315)$ Use of money or property 1,020 1,020 665 (355) Aid from other governments 8,900 8,900 24,530 15,630 Other revenue 269,895 269,895 ‐ (269,895) Total Revenues 1,106,715 1,106,715 829,780 (276,935)

Expenditures:

Current: Services & Supplies 1,106,715 1,106,715 1,106,715 ‐ Other Charges ‐ ‐ 13,424 (13,424) Total Expenditures 1,106,715 1,106,715 1,120,140 (13,424) Excess (deficiency) of revenues over expenditures ‐ ‐ (290,360) (290,359)


Transfers in ‐ ‐ 180,000 180,000 Total other financing sources (uses) ‐ ‐ 180,000 180,000



Fund balance, end of year 111,075$ 111,075$ 715$ (110,359)$

84


Combining Balance SheetNonmajor Governmental Funds

June 30, 2014

Capital Total Other

Special Revenue Projects Governmental

Funds Fund Funds

Assets

Cash and investments in Treasury 17,120,818$ 31,823$ 17,152,641$ Restricted assets: Cash with fiscal agent 4,837,317 ‐ 4,837,317 Receivables: Due from other governmental agencies 674,113 ‐ 674,113 Accounts receivable ‐ 413,353 413,353 Inventories and other assets 2,000 ‐ 2,000 Total Assets 22,634,248 445,176 23,079,424

Liabilities

Accounts payable and accrued liabilities 638,902 427,354 1,066,256 Due to other funds 3,350,540 ‐ 3,350,540 Other liabilities 19,995 ‐ 19,995 Unearned revenues 1,889,015 ‐ 1,889,015

Total Liabilities 5,898,452 427,354 6,325,806

Deferred Inflows of Resources

Unavailable revenues ‐ 538,122 538,122

Fund Balances

Assigned 17,211,440 ‐ 17,211,440 Unassigned (475,644) (520,300) (995,944)

Total Fund Balances 16,735,796 (520,300) 16,215,496

Total Liabilities, Deferred Inflows of

Resources and Fund Balances 22,634,248$ 445,176$ 23,079,424$

85


Combining Statement of Revenues, Expenditures, and Changes in Fund BalancesNonmajor Governmental FundsFor the Year Ended June 30, 2014

Capital Total OtherSpecial Revenue Projects Governmental

Funds Fund Funds

Revenues:

Taxes 1,407,594$ ‐$ 1,407,594$ Aid from other governmental agencies 7,430,946 459,512 7,890,458 Use of money or property 75,849 3,772 79,621

Fines, forfeitures and penalties 17,306 ‐ 17,306 Charges for services 4,442,246 ‐ 4,442,246 Miscellaneous revenue 61,879 395 62,274 Total Revenues 13,435,820 463,679 13,899,499

Expenditures:

Current: General government 10,771 ‐ 10,771 Public protection 3,582,968 ‐ 3,582,968 Public ways and facilities 525,885 ‐ 525,885 Health and sanitation 3,734,993 ‐ 3,734,993 Public assistance 3,688,235 ‐ 3,688,235 Capital outlay: General government ‐ 800,129 800,129 Public protection ‐ 830,126 830,126 Public ways and facilities ‐ 116,202 116,202 Public assistance ‐ 6,711 6,711 Recreation and culture ‐ 717,634 717,634 Total Expenditures 11,542,852 2,470,802 14,013,654 Excess (deficiency) of revenues over (under) expenditures 1,892,968 (2,007,123) (114,155)

Other Financing Sources (uses):

Transfers in 1,259,021 1,732,168 2,991,189 Transfers out (1,510,494) ‐ (1,510,494) Total other financing sources (uses) (251,473) 1,732,168 1,480,695

Net change in fund balances 1,641,495 (274,955) 1,366,540

Fund balances, beginning of year 15,094,301 (245,345) 14,848,956

Fund balances, end of year 16,735,796$ (520,300)$ 16,215,496$

86


Budgetary Comparison ScheduleCapital Projects Fund





Revenues:

Use of money or property ‐$ ‐$ 3,772$ 3,772$ Aid from other governments 2,103,842 2,103,842 459,512 (1,644,330) Other revenue ‐ ‐ 395 395 Total Revenues 2,103,842 2,103,842 463,679 (1,640,163)

Expenditures:

Current: Services & Supplies 897,351 897,351 ‐ 897,351 Capital Outlay 10,452,488 10,452,488 2,470,802 7,981,686 Total Expenditures 11,349,839 11,349,839 2,470,802 8,879,037 Excess (deficiency) of revenues over expenditures (9,245,997) (9,245,997) (2,007,123) 7,238,874


Transfers in 9,245,997 9,245,997 1,732,168 (7,513,829) Total other financing sources (uses) 9,245,997 9,245,997 1,732,168 (7,513,829)


Fund balance, beginning of year (245,345) (245,345) (245,345) ‐

Fund balance, end of year (245,345)$ (245,345)$ (520,300)$ (274,955)$

87


Budgetary Comparison ScheduleSolid Waste Fund





Operating Revenues:

Charges for services 1,133,322$ 1,133,322$ 1,302,722$ 169,400$ Other revenues 204,360 204,360 347,417 143,057

Total Operating Revenues 1,337,682 1,337,682 1,650,139 312,457

Operating Expenditures:

Salaries & Benefits 269,166 269,166 242,391 26,775 Services & Supplies 972,988 972,988 713,876 259,112 Other Charges ‐ Landfill closure cost ‐ ‐ 222,667 (222,667) Depreciation & Amortization ‐ ‐ 51,544 (51,544) Fixed assets 34,000 ‐ 34,000 Indirect Costs 56,000 56,000 ‐ 56,000

Total Operating Expense 1,298,154 1,332,154 1,230,478 101,676 Excess (deficiency) of revenues over expenditures 39,528 5,528 419,661 414,133

Non‐operating Revenues (Expense):

Interest Income 75,000 75,000 41,400 (33,600) Total Non‐Operating Revenues (Expenses) 75,000 75,000 41,400 (33,600)

Net Income 114,528 80,528 461,061 380,533

Net Position ‐ Beginning of Year 5,198,629 5,313,157 5,198,629 (114,528)

Net Position ‐ End of Year 5,313,157$ 5,393,685$ 5,659,690$ 266,005$

88

STATISTICAL SECTION The information in this section is not covered by the Independent Auditor’s Report, but is presented as supplemental data for the benefit of the readers of the comprehensive financial report. Financial Trends These schedules contain trend information to help the reader understand how the County’s financial performance and well‐being have changed over time. (Pages 89‐93) Revenue Capacity These schedules contain information to help the reader assess the County’s most significant local revenue sources, property tax and sales tax. (Pages 94‐97) Debt Capacity These schedules present information to help the reader assess the affordability of the County’s current levels of outstanding debt and the County’s ability to issue additional debt in the future. (Pages 98‐101) Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the County’s financial activities take place. (Pages 102‐103) Operating Information These schedule contains information on government employees for each function and detailed by department, (pages 104‐105)


Net Position by Component

Last Nine Years(accrual basis of accounting)

Fiscal Year Ended June 30,Governmental activities 2014 2013 2012 2011 2010 2009 2008 2007 2006

Invested in capital assets, net of related de 94,119,963$ 92,067,037$ 89,058,169$ 92,475,014$ 91,060,584$ 91,509,750$ 91,371,397$ 91,989,265$ 89,447,837$ Restricted ‐ ‐ ‐ 225,314 225,314 243,451 243,451 243,451 243,451 Unrestricted 32,472,292 29,140,032 30,355,364 34,887,387 45,527,244 53,799,469 57,893,181 65,179,628 60,963,226

Total governmental activities net assets 126,592,255$ 121,207,069$ 119,413,533$ 127,587,715$ 136,813,142$ 145,552,670$ 149,508,029$ 157,412,344$ 150,654,514$

Business‐type activitiesInvested in capital assets, net of related de 947,300$ 907,172$ 845,725$ 596,388$ 488,115$ 317,136$ 327,951$ 338,766$ 372,389$ Restricted

Unrestricted 4,712,390 4,291,455 4,203,473 4,145,519 4,188,533 3,934,792 3,987,072 3,311,890 2,664,719 Total business‐type activities net assets 5,659,690$ 5,198,627$ 5,049,198$ 4,741,907$ 4,676,648$ 4,251,928$ 4,315,023$ 3,650,656$ 3,037,108$

Primary government

Invested in capital assets, net of related de 95,067,263$ 92,974,209$ 89,903,894$ 93,071,402$ 91,548,699$ 91,826,886$ 91,699,348$ 92,328,031$ 89,820,226$ Restricted ‐ ‐ ‐ 225,314 225,314 243,451 243,451 243,451 243,451 Unrestricted 37,184,682 33,431,487 34,558,837 39,032,906 49,715,777 57,734,261 61,880,253 68,491,518 63,627,945

Total primary government net assets 132,251,945$ 126,405,696$ 124,462,731$ 132,329,622$ 141,489,790$ 149,804,598$ 153,823,052$ 161,063,000$ 153,691,622$

Notes:

(1) Trend information is available only for the last eight years due to the implementation of GASB 34, restated for GASB 54.

(2) Accounting standards require that net assets be reported in three components in the financial statements: invested in capital assets, net of related debt; restricted; and unrestricted. Net assets are considered restricted when 1) externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of other governments or 2) imposed by law through constitutional provisions or enabling legislation.

Source:

San Benito County Clerk, Auditor and Recorder

89

COUNTY OF MONTEREY

Changes in Net PositionLast Eight Years

(accrual basis of accounting)

Fiscal Year Ended June 30,Expenses (by function)

Governmental activities 2014 2013 2012 2011 2010 2009 2008 2007

General government 2,872,536$ 3,682,386$ 9,867,243$ 6,058,757$ 6,124,809$ 8,988,827$ 6,529,937$ 4,676,027$ Public protection 24,900,347 25,516,934 26,978,343 30,771,788 29,132,253 28,570,852 26,247,820 23,867,211 Public ways and facilities 6,324,848 6,655,356 7,038,005 8,221,996 7,942,193 7,615,680 14,064,473 9,381,688 Health and sanitation 9,513,485 9,926,853 9,658,580 9,504,909 10,443,296 9,795,150 9,449,693 7,947,986 Public assistance 19,623,809 16,677,671 19,450,340 20,428,859 21,503,579 19,653,854 18,393,087 17,600,174 Education 1,006,320 820,203 839,647 1,557,718 1,134,128 987,627 989,859 841,283 Recreation and culture 182,163 179,184 437,982 562,217 229,023 855,593 296,996 226,039 Debt Service: Interest 2,924 5,299 13,182 11,896 12,321 47,658 41,111 21,553

Total Governmental Activities expenses 64,426,432 63,463,886 74,283,322 77,118,140 76,521,602 76,515,241 76,012,976 64,561,961

Business‐ type activities: Solid waste 1,230,478 1,208,059 1,239,238 1,012,760 1,036,231 1,340,849 714,968 755,654 Total business‐type activities expenses 1,230,478 1,208,059 1,239,238 1,012,760 1,036,231 1,340,849 714,968 755,654

Total Primary Government Expenses 65,656,910 64,671,945 75,522,560 78,130,900 77,557,833 77,856,090 76,727,944 65,317,615

Program Revenues (by function)Governmental activities Charges for service: General government 1,135,198 2,400,487 1,247,423 1,787,088 1,454,124 2,846,454 1,585,381 2,213,111 Public protection 8,593,707 5,683,470 6,375,969 5,988,777 5,093,445 4,692,125 4,632,088 3,760,471 Public ways and facilities 3,800,870 1,145,966 1,512,540 1,045,309 897,820 1,551,404 1,706,418 2,725,567 Health and sanitation 590,513 611,245 881,440 899,220 1,126,518 730,704 858,828 721,654 Public assistance 88,761 16,086 132,347 367,225 53,604 675,515 14,146 858,635 Education 42,402 31,554 134,701 376,365 62,226 38,459 36,114 19,549 Recreation and culture 178,408 116,590 108,311 91,736 70,494 160,413 189,489 368,574 Operating grants and contributions 34,169,280 36,862,728 38,914,593 40,186,593 39,131,033 40,698,912 38,757,539 39,344,025 Capital grants and contributions 5,381,065 3,448,335 1,304,425 1,048,873 2,649,825 2,740,904 ‐ ‐ Total governmental activities program revenues 53,980,204 50,316,461 50,611,749 51,791,186 50,539,089 54,134,890 47,780,003 50,011,586

Business‐type activities: Charges for services Solid Waste 1,650,139 1,300,126 1,402,743 1,210,964 1,347,746 1,068,164 1,110,902 1,057,285 Total Business‐type activities revenue 1,650,139 1,300,126 1,402,743 1,210,964 1,347,746 1,068,164 1,110,902 1,057,285 Total Primary Government Program Revenues 55,630,343 51,616,587 52,014,492 53,002,150 51,886,835 55,203,054 48,890,905 51,068,871

Notes:

(1) Trend information is available only for the last eight years due to the implementation of GASB 34.Source: San Benito County Clerk, Auditor and Recorder

90

COUNTY OF MONTEREY

Changes in Net PositionLast Eight Years

(accrual basis of accounting)

Fiscal Year Ended June 30,

2014 2013 2012 2011 2010 2009 2008 2007

Net (Expenses)/Revenue Governmental activities (10,446,228) (13,147,425) (23,671,573) (25,326,954) (25,982,513) (22,380,351) (28,232,973) (14,550,375) Business‐type activities 419,661 92,067 163,505 198,204 311,515 (272,685) 395,934 301,631 Total Primary Net (Expenses)/Revenue (10,026,567) (13,055,358) (23,508,068) (25,128,750) (25,670,998) (22,653,036) (27,837,039) (14,248,744)

General Revenues and Other Changes in Net Assets Governmental activities: Taxes: Property taxes 12,451,983 11,987,365 11,350,510 11,894,375 12,170,639 14,969,680 15,687,145 14,056,402 Sales and use taxes 1,390,428 1,517,488 1,391,853 1,258,710 1,067,883 1,216,365 1,263,107 1,359,768 Franchise taxes 488,469 421,712 442,047 443,428 431,446 390,068 396,690 405,431 Other taxes 764,008 360,818 367,715 300,983 307,810 337,718 85,697 451,540 Unrestricted interest and investment earnings 185,960 203,534 461,213 75,720 398,888 1,006,021 1,556,510 2,542,185 Miscellaneous 550,567 450,045 1,477,376 1,965,192 2,866,319 505,140 1,339,509 1,407,730 Transfers ‐ 6,678 163,119 Total governmental activities 15,831,415 14,940,962 15,497,392 16,101,527 17,242,985 18,424,992 20,328,658 20,223,056 Business‐type activities: Other taxes ‐ ‐ ‐ ‐ 33,633 17,320 (6,975) 18,412 Transfers ‐ ‐ ‐ (163,119) ‐ ‐ ‐ ‐ Unrestricted interest and investment earnings 41,400 57,362 143,786 30,174 79,572 192,270 275,408 293,505 Total business‐type activities 41,400 57,362 143,786 (132,945) 113,205 209,590 268,433 311,917 Total Primary Government 15,872,815 14,998,324 15,641,178 15,968,582 17,356,190 18,634,582 20,597,091 20,534,973

Change in Net Position Governmental activities 5,385,187 1,793,537 (8,174,181) (9,225,427) (8,739,528) (3,955,359) (7,904,315) 5,672,681 Business‐type activities 461,061 149,429 307,291 65,259 424,720 (63,095) 664,367 613,548

Total Primary Government 5,846,248$ 1,942,966$ (7,866,890)$ (9,160,168)$ (8,314,808)$ (4,018,454)$ (7,239,948)$ 6,286,229$

Notes:

(1) Trend information is available only for the last eight years due to the implementation of GASB 34.Source: San Benito County Clerk, Auditor and Recorder

91


Fund Balances of Governmental FundsLast Ten Fiscal Years

(modified accrual basis of accounting)

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

General FundReserved ‐ ‐ ‐ 3,063,761$ 451,322$ 737,316$ 639,557$ 561,696$ 1,041,947$ Unreserved ‐ ‐ ‐ 17,435,187 25,836,693 24,190,206 25,659,308 23,427,677 19,011,301 Nonspendable 166,047$ 8,583$ 503,686$ 276,138$ ‐ ‐ ‐ ‐ ‐ ‐ Assigned 1,629,420 1,319,553 Unassigned 16,342,158 11,599,259 10,741,330 17,290,531 ‐ ‐ ‐ ‐ ‐ ‐

Total general fund 16,508,205$ 13,237,262$ 12,564,569$ 17,566,669$ 20,498,948$ 26,288,015$ 24,927,522$ 26,298,865$ 23,989,373$ 20,053,248$

All Other Governmental FundsReserved ‐ ‐ ‐ ‐ ‐ 507,309 7,045,395 10,441,836 7,522,188 Unreserved, reported in

Special revenue funds ‐ ‐ ‐ 31,267,815 34,037,109 39,725,259 38,736,491 32,866,262 28,512,336 Capital project fund ‐ ‐ ‐ ‐ ‐ ‐ 365,786 793,903 573,674

Nonspendable 63,644 111,752 135,876 111,062 ‐ ‐ ‐ ‐ ‐ ‐ Restricted 6,669,584 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Committed ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Assigned 16,160,602 24,172,212 25,672,149 27,084,479 ‐ ‐ ‐ ‐ ‐ ‐ Unassigned (995,944) (924,913) (213,777) ‐ ‐ ‐ ‐ ‐ ‐ ‐

Total all other governmental funds 21,897,886 23,359,051 25,594,248 27,195,541 31,267,815 34,037,109 40,232,568 46,147,672 44,102,001 36,608,198

Total governmental fund balances 38,406,091$ 36,596,313$ 38,158,817$ 44,762,210$ 51,766,763$ 60,325,124$ 65,160,090$ 72,446,537$ 68,091,374$ 56,661,446$

92


Changes in Fund Balance ‐ Governmental FundsLast Ten Fiscal Years

(modified accrual basis of accounting)Fiscal Year Ended June 30,

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005Revenues: Taxes 15,685,513$ 15,207,822$ 14,444,893$ 14,560,800$ 15,110,446$ 16,324,293$ 16,889,149$ 15,867,711$ 17,787,198$ 11,940,873$ Licenses and permits 988,892 874,270 764,244 890,078 802,321 859,554 1,219,250 1,064,655 989,970 3,217,512 Aid from other governments 40,239,368 39,942,184 40,498,522 42,392,956 41,790,197 43,622,820 37,810,749 39,344,024 29,268,107 34,841,519 Use of money or property 362,084 398,684 995,570 304,774 643,485 1,988,669 3,111,864 3,962,590 4,638,593 1,299,370 Fines, forfeits and penalties 1,014,266 1,315,372 1,109,556 1,311,104 884,903 1,204,310 1,173,016 1,192,802 7,951,142 715,535 Charges for services 8,760,820 6,796,601 7,376,382 7,144,250 5,950,541 7,645,493 6,946,304 6,684,357 6,391,817 4,859,248 Miscellaneous revenue 680,371 722,489 913,295 1,116,027 869,279 914,743 958,329 2,118,502 4,283,530 7,178,310

Total revenues 67,731,314 65,257,422 66,102,462 67,719,989 66,051,172 72,559,882 68,108,661 70,234,641 71,310,357 64,052,367 Expenditures: Current: General government 2,863,529 3,750,873 9,713,466 5,186,443 5,848,111 8,473,325 6,847,551 4,542,937 6,325,377 6,925,099 Public protection 24,273,597 25,674,417 26,698,531 32,234,130 28,458,308 27,804,398 26,176,299 24,121,566 21,662,477 17,977,927 Public ways and facilities 2,860,539 4,367,858 3,606,701 4,950,124 4,597,656 4,327,411 10,253,316 6,032,801 4,902,433 1,650,000 Health and sanitation 9,482,653 9,930,586 9,651,858 9,173,126 10,216,601 9,768,354 9,604,141 7,968,913 7,059,162 12,220,272 Public assistance 19,533,009 18,439,911 19,562,543 20,404,239 20,926,997 19,880,854 18,410,390 17,653,652 17,140,568 18,756,428 Education 985,158 812,642 791,108 1,456,158 1,046,484 937,628 1,022,611 819,141 561,190 579,245 Recreation and culture 125,063 581,967 377,356 729,216 193,013 803,730 388,845 210,810 176,324 181,561 Capital outlay 5,434,064 2,895,373 1,706,788 2,390,945 3,095,496 5,213,309 2,452,508 4,297,734 1,789,736 5,423,258 Debt Service: Principal 361,000 361,000 591,000 225,000 210,000 205,000 195,000 185,000 203,482 170,000 Interest 2,924 5,299 13,182 17,290 16,867 33,508 44,446 46,923 59,678 70,436

Total expenditures 65,921,536 66,819,926 72,712,533 76,766,671 74,609,533 77,447,517 75,395,107 65,879,477 59,880,427 63,954,226 Excess (deficiency) of revenues over (under) expenditures 1,809,778 (1,562,504) (6,610,071) (9,046,682) (8,558,361) (4,887,635) (7,286,446) 4,355,164 11,429,929 98,141

Other Financing Sources (Uses): Transfers in 4,881,133 2,363,061 4,470,443 6,792,657 4,267,633 11,716,662 10,183,215 4,670,987 4,226,701 577,983 Transfers out (4,881,133) (2,363,061) (4,463,765) (6,629,538) (4,267,633) (11,716,662) (10,183,215) (4,670,987) (4,226,701) (577,983) Proceds from borrowing ‐ ‐ ‐ 1,879,008 ‐ ‐ ‐ ‐ ‐ ‐ Capital leases ‐ ‐ ‐ ‐ ‐ 52,668 ‐ ‐ ‐ ‐ Total other financing sources (uses) ‐ ‐ 6,678 2,042,127 ‐ 52,668 ‐ ‐ ‐ ‐

Net change in fund balances 1,809,778 (1,562,504) (6,603,393) (7,004,555) (8,558,361) (4,834,967) (7,286,446) 4,355,164 11,429,929 98,141

Fund balances, beginning of year 36,596,313 38,158,817 44,762,210 51,766,765 60,325,124 65,160,091 72,446,536 68,091,373 56,661,446 53,175,835

Fund balances, end of year 38,406,091$ 36,596,313$ 38,158,817$ 44,762,210$ 51,766,763$ 60,325,124$ 65,160,090$ 72,446,537$ 68,091,375$ 53,273,976$

93


Assessed Value and Estimated Actual Value of Taxable PropertyLast Ten Fiscal Years

(in thousands)

Fiscal Year End June 30 Secured a Unsecured b Utility c Total Exempt d

Net Assessed Taxable Value e

Total Direct Tax Rate

2014 5,662,510 323,416 126,599 6,112,525 161,736 5,950,789 1.00%

2013 5,357,366 281,741 120,244 5,759,351 160,959 5,598,392 1.00%

2012 5,461,504 262,487 114,048 5,838,039 150,543 5,687,496 1.00%

2011 5,600,542 254,491 109,094 5,964,127 142,180 5,821,947 1.00%

2010 5,903,395 264,930 108,569 6,276,894 145,296 6,131,598 1.00%

2009 6,466,350 252,700 105,350 6,824,400 140,031 6,684,369 1.00%

2008 6,573,600 216,000 98,000 6,887,600 136,712 6,750,888 1.00%

2007 6,180,300 208,500 93,600 6,482,400 134,670 6,347,730 1.00%

2006 5,605,300 198,400 91,400 5,895,100 127,644 5,767,456 1.00%

2005 5,121,100 199,500 85,900 5,406,500 128,451 5,278,049 1.00%

a

b Unsecured property is generally personal property including machinery, equipment, tools and supplies.c State regulated utility property. These are assessed by the State Board of Equalization.d

e

Data Source: San Benito County Assessor's Annual Reports

Gross Assessed Value

Secured property is generally real property, defined as land, mines, minerals, timber and improvements such as buildings, structures, crops, trees and vines.

Exempt properties include full and partial exclusions/exemptions provided by the State Constitution and the legislature that relieve certain taxpayers from the burden of paying property taxes.Due to the 1978 passage of the property tax initiative Proposition 13, the County does not track the estimated actual value of all county properties. Under Prop. 13 property is assessed at the 1978 market value with an annual increase limited to the lesser of 2% or the CPI on properties not involved in a change of ownership or properties that did not undergo new construction. Newly acquired property is assessed at its new market value (usually the purchase price) and the value of any new construction is added to the existing base value of a parcel. As a result, similar properties can have substantially different assessed values based on the date of purchase. Additionally, Prop. 13 limits the property tax rate to 1% of assessed value plus the rate necessary to fund local voter‐approved bonds and special assessments.

94


Principal Property TaxpayersJune 30, 2014 and June 30, 2013 (in millions)

Fiscal Year Ended June 30, 2014Assessed

Taxpayer Value

Pacific Gas & Electric Co. 100.1

Granite Rock Co. 99.6

Natural Selection Foods LLC 49.7

Property Reserve Inc. 29.8

McCormick Selph Inc. a Calif. Corp 26.7

Stone Canyon Ranch LLC 26.7

Northpointe Associates LLC 19.0

TLF‐SJB LLC A Calif LTD Liab Company 18.0

AT&T California 15.6

El Rancho San Benito LLC a Delaware Ltd. Liab. Co. 15.1

Fiscal Year Ended June 30, 2013AssessedAssessed

Taxpayer Value

Pacific Gas & Electric Co. 94.8

Granite Rock Co. 57.3

Natural Selection Foods LLC 44.3

Property Reserve Inc. 28.6

Stone Canyon Ranch LLC 26.1

McCormick Selph Inc./Pacific Scientific 23.9

AT&T California 15.4

Roberts, Janet P Family Trust 15.3

TLF‐SJB LLC A Calif LTD Liab Company 14.9

Diageo Chateau & Estate Wines 14.4

95


Property Tax Levies and CollectionsLast Ten Fiscal Years

Year Ending 6/30: Taxes Levied (1) Amount

Percentage of Levy Amount

Percentage of Levy

2014 71,540,713 70,535,083 99% NA 70,535,083 99%

2013 67,648,211 66,400,726 98% 663,088 67,063,814 99%

2012 68,224,241 66,178,276 97% 1,362,547 67,540,823 99%

2011 69,133,645 66,871,670 97% 1,738,688 68,610,358 99%

2010 72,320,271 68,747,433 95% 2,852,910 71,600,342 99%

2009 79,082,862 74,064,443 94% 4,672,013 78,736,456 100%

2008 79,711,678 73,316,595 92% 6,224,187 79,540,783 100%

2007 74,808,177 70,833,100 95% 3,790,908 74,624,009 100%

2006 67,560,351 65,691,290 97% 1,795,021 67,486,311 100%

2005 60,955,118 57,690,904 95% 1,205,175 58,896,079 97%

Taxes Levied includes the Secured, Unsecured and Unitary Tax levy for the County and school

Collections Within the Fiscal Year of Levy Total Collections to DateCollections in

Subsequent Years

districts, cities and special districts under the supervision of independent governing boards.

Note (1) Based on final levy after adjustments

Source: San Benito County Auditor

96


Property Tax Rates as % of Assessed ValueDirect and Overlapping Governments

Last Ten Fiscal Years(Unaudited)

Cities

2014 1.000 n/a 0.0248 ‐ 0.0987 0.0300 ‐ 0.2800

2013 1.000 n/a 0.0257 ‐ 0.1107 0.0311 ‐ 0.2811

2012 1.000 n/a 0.0217 ‐ 0.0955 0.0008 ‐ 0.2798

2011 1.000 n/a 0.0199 ‐ 0.0889 0.0008 ‐ 0.2784

2010 1.000 n/a 0.0163 ‐ 0.0887 0.0010 ‐ 0.2762

2009 1.000 n/a 0.0138 ‐ 0.0816 0.0008 ‐ 0.2734

2008 1.000 n/a 0.0138 ‐ 0.0781 0.0012 ‐ 0.2730

2007 1.000 n/a 0.0121 ‐ 0.0894 0.0009 ‐ 0.2736

2006 1.000 n/a 0.0130 ‐ 0.0609 0.0010 ‐ 0.2750

2005 1.000 n/a 0.0135 ‐ 0.0855 0.0007 ‐ 0.2500

Source: San Benito County Auditor

Fiscal

Year

County of

San Benito

Range of overlapping Rates (%):

Schools Special Districts

97


Ratios of Net General Bonded Debt OutstandingLast Ten Fiscal Years

(Unaudited)

(Inthousands,exceptPopulationandPerCapita)Restrictedfor NetAssessed Percentageof Net

General Principal NetBonded TaxableValue TaxableValue BondedDebtFiscalYear BondedDebt Repayment Debt ofProperty ofProperty Population PerCapita2013‐14 ‐ ‐ ‐ 5,950,789 0.00% 57,997 0.002012‐13 ‐ ‐ ‐ 5,598,392 0.00% 57,146 0.002011‐12 ‐ ‐ ‐ 5,687,496 0.00% 56,643 0.002010‐11 235 ‐ 235 5,821,947 0.00% 55,948 4.202009‐10 455 ‐ 455 6,131,598 0.01% 58,388 7.792008‐09 665 ‐ 665 6,684,369 0.01% 58,016 11.462007‐08 870 ‐ 870 6,750,888 0.01% 57,784 15.062006‐07 1,065 ‐ 1,065 6,347,730 0.02% 57,803 18.422005‐06 1,250 ‐ 1,250 5,767,456 0.02% 57,513 21.732004‐05 1,430 ‐ 1,430 5,278,049 0.03% 56,006 25.53

Notes:

DebtinformationisderivedfromtheSanBenitoCountyAudits.TaxablevalueofpropertyisderivedfromtheSanBenitoCountyAssessor'sAnnualReports.Thesourceforpopulationfiguresfor2001‐2005istheCaliforniaBureauofAnalysis.Populationfiguresfor2006‐2013asofJanuary1isestimatedbytheCaliforniaDepartmentofFinance.

98


Ratio of Annual Debt Service ExpendituresTo Total General Governmental Expenditrues


Ratio of DebtService to

Total General General

Total Debt Government Government

Fiscal Year Principal Interest Service Expenditures Expenditures

2013‐14 ‐ ‐ ‐ 2,872,536 0.00%

2012‐13 ‐ ‐ ‐ 3,682,386 0.00%

2011‐12 230,000 5,060 235,060 9,867,243 2.38%

2010‐11 225,000 17,290 242,290 5,186,443 4.67%

2009‐10 210,000 16,867 226,867 5,848,111 3.88%

2008‐09 205,000 33,508 238,508 8,473,325 2.81%

2007‐08 195,000 44,446 239,446 6,847,551 3.50%

2006‐07 185,000 46,923 231,923 4,542,937 5.11%

2005‐06 203,482 59,678 263,160 6,325,377 4.16%

2004‐05 170,000 70,436 240,436 6,925,099 3.47%

Notes:

Total general government and debt service expenditures from the San Benito County Audits, Statement of Revenues, Expenditures and Changes in Fund Balances.

99


Ratio of Outstanding Debt by TypeLast Ten Fiscal Years (in thousands, except per capita)

Fiscal YearGovernmental Activities: 2013‐14 2012‐13 2011‐12 2010‐11 2009‐10 2008‐09 2007‐08 2006‐07 2005‐06 2004‐05 Bonds Payable Capital Leases 0 0 0 0 18 77 120 36 2 1

Certificates of Participation 0 0 0 235 455 665 870 1,065 1,250 1,430

Loans Payable Pension Obligation Bonds Total Governmental Activities 0 0 0 235 473 742 990 1,101 1,252 1,431

Business‐type Activities: Capital Leases Certificates of Participation Landfill Closure & Post‐closure 5,032 4,818 4,521 4,304 4,189 3,948 3,435 3,225 3,005 1,911

Pension Obligation Bonds Total Business‐type Activities 5,032 4,818 4,521 4,304 4,189 3,948 3,435 3,225 3,005 1,911

Total Primary Government 5,032 4,818 4,521 4,539 4,662 4,690 4,425 4,326 4,257 3,342

Percentage of Personal Income 0.22% 0.22% 0.22% 0.23% 0.22% 0.22% 0.22% 0.22% 0.23% 0.19%

Per Capita 87 84 80 81 84 81 77 75 74 60

Notes:

Personal income source figures for PPI and population figures for Per Capita in years 2001‐02 through 2004‐05 are from the California Bureau of Economic

Analysis. For years 2005‐06 through 2010‐14 figures are from the California Department of Finance (see "Demographics and Economic statistics").Financial information derived from San Benito County annual audits.

100


Legal Debt Margin


(In thousands)

Net Debt Limit‐ Restricted for Legal Total Net DebtFiscal Assessed 5% of General Principal Total Net Debt to the DebtYear Value Assessed Value Bonded Debt Repayment Debt Margin Limit as a %

2013‐14 5,950,789 297,539 ‐ ‐ ‐ 297,539 0.00%

2012‐13 5,598,392 279,920 ‐ ‐ ‐ 279,920 0.00%

2011‐12 5,687,496 284,375 ‐ ‐ ‐ 284,375 0.00%

2010‐11 5,821,947 291,097 235 ‐ 235 290,862 0.08%

2009‐10 6,131,598 306,580 455 ‐ 455 306,125 0.15%

2008‐09 6,684,369 334,218 665 ‐ 665 333,553 0.20%

2007‐08 6,750,888 337,544 870 ‐ 870 336,674 0.26%

2006‐07 6,347,730 317,387 1,065 ‐ 1,065 316,322 0.34%

2005‐06 5,767,456 288,373 1,250 ‐ 1,250 287,123 0.43%

2004‐05 5,278,049 263,902 1,430 ‐ 1,430 262,472 0.54%

Notes:

Net assessed value (of property) is derived from the San Benito County Assessor's Annual Reports. Debt information

is derived from the San Benito County Annual Audits. Legal Debt Margin is the Debt Limit less Total Net Debt.

DEBT LIMIT DEBT APPLICABLE TO LIMIT

101


Demographics and Economic StatisticsLast Ten Years

For the Year Ending 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Population (a) 57,517 57,079 55,946 55,350 55,093 55,043 55,000 54,895 55,153 55,287

Personal Income (In thousands) (b) 2,221,249 2,161,410 2,024,630 1,882,370 1,858,066 1,959,040 1,969,783 1,859,490 1,748,023 1,709,183

Per Capita Personal Income (b) 38,619 37,867 36,189 33,904 34,133 36,100 36,429 34,356 31,988 31,162

County Unemployment Rate (c) 11.10% 13.90% 15.90% 17.20% 14.30% 9.60% 7.20% 7.20% 8.10% 9.60%

Notes:

(a) Source: California Department of Finance Demeographic Research Unit State/County Population Estimates

(b) Source: U.S. Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income, 2013(c) Source: U.S. Department of Labor, Bureau of Labor Statistics, Labor force data by county, annual averages.

102


Construction and Building ActivityLast Ten Years

Residential Building Construction Percent Permits Percent

Year Valuation Change Issued Change

2013 32,983,998 227.54% 143 248.78%

2012 10,070,188 11.51% 41 28.13%

2011 9,030,401 ‐10.34% 32 ‐31.91%2010 10,071,340 ‐11.33% 47 17.50%

2009 11,357,787 142.79% 40 110.53%

2008 4,678,036 ‐60.21% 19 ‐38.71%2007 11,757,693 64.16% 31 3.33%

2006 7,162,149 ‐50.34% 30 ‐65.91%2005 14,422,153 ‐30.82% 88 ‐21.43%2004 20,846,110 41.93% 112 15.46%

2003 14,687,209 ‐40.67% 97 ‐32.17%

Source: U.S. Census Bureau (http://censtats.census.gov/cgi‐bin/bldgprmt/bldgdisp.pl).

103


Full‐time Equivalent County Government Employees by Department and by FunctionLast Ten Fiscal Years (Unaudited)

Fund Budget Program/

No. Unit Job Class Title 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

General Government

1001 100 Board of Supervisors 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0

1001 102 Clerk of the Board of Supervisors 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.8 1.8

1001 105 County Administrative Officer 4.0 4.0 4.0 3.8 3.8 3.8 3.8 3.2 2.8 4.0

1001 106 Information Technology ‐ ‐ 3.0 4.0 4.0 5.0 5.0 5.0 4.0 5.0

1001 107 GIS ‐ ‐ ‐ 0.2 0.2 0.5 1.0 1.0 1.0 1.0

1001 109 County Counsel 5.5 5.5 5.5 7.0 7.0 7.0 6.0 6.0 3.7 3.8

1001 110 Auditor's Office 12.1 12.1 11.1 12.1 11.1 11.7 11.7 10.7 7.5 9.8

1001 112 Treasurer 2.8 2.5 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8

1001 114 Assessor 14.0 14.0 14.0 15.0 15.0 15.0 15.0 15.0 10.0 10.0

1001 116 Tax Collector 3.5 3.8 4.3 4.3 4.3 4.3 4.3 3.3 2.8 3.3

1001 130 Internal Services 3.0 4.0 3.8 3.8 3.8 4.5 4.5 3.8 2.8 3.5

1001 140 Elections 3.1 3.1 3.5 3.5 3.8 3.1 3.3 3.3 2.8 2.8

1001 160 Buildings & Grounds Maintenance 6.1 6.2 5.2 5.2 5.2 5.7 5.7 4.5 3.4 1.8

1001 190 Risk Management ‐ ‐ ‐ 0.5 0.5 0.5 0.5 0.5 0.5 0.0

Total General Government 61.1 62.2 64.0 69.0 68.3 70.7 70.4 65.9 50.6 54.5

Public Protection

1001 206 District Attorney 10.0 10.0 11.5 12.5 13.5 13.5 12.5 11.0 9.0 9.0

1001 210 Sheriff's Operations 34.5 35.5 40.5 38.5 40.5 36.5 36.5 30.3 21.5 23.0

1001 211 Marshal's Office 2.0 2.0 1.8 1.8 1.8 1.8 1.8 0.0 0.0 0.0

1001 212 Communications 14.8 14.8 19.0 19.5 19.5 17.0 15.5 14.8 0.0 0.0

1001 220 Jail 30.5 31.5 32.5 32.5 32.5 30.5 30.5 25.5 24.5 25.5

1001 224 Probation Department 21.0 21.0 22.5 22.5 22.5 19.5 19.5 17.0 18.0 18.0

1001 226 Juvenile Hall 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 12.0 12.0

1001 228 Gang Prevention Program 1.0 2.0 2.0 2.0 1.8

1001 250 Agricultural Commissioner & Sealer of Weights and M 7.5 7.5 7.0 8.0 8.0 7.3 7.0 7.0 6.6 6.6

1001 259 County Clerk 1.6 1.6 2.0 2.0 2.0 1.8 1.2 1.2 0.2 0.5

1001 260 County Recorder 4.1 4.1 4.3 5.5 7.1 3.9 3.9 2.9 0.4 3.0

1001 263 Emergency Service 2.1 2.1 1.0 1.5 1.5 2.0 1.5 1.5 1.0 1.0

1001 265 Planning 15.0 15.0 14.0 14.4 14.4 10.9 11.0 9.0 5.0 5.0

1001 267 Housing & Economic Development ‐ ‐ ‐ 1.0 1.0 1.0 1.0 1.0 1.0 1.0

1001 271 Abandoned Vehicle Abatement ‐ ‐ ‐ 0.4 0.4 0.4 0.5 0.5 0.5 0.5

1001 275 LAFCO ‐ ‐ ‐ ‐ 0.5 0.5 0.5 0.0 0.0 0.0

2224 216 Child Support Services 28.0 28.0 24.0 24.0 24.0 21.0 20.0 19.0 21.0 19.0

2510 208 Victim ‐ Witness Program 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0 1.0

104


Full‐time Equivalent County Government Employees by Department and by FunctionLast Ten Fiscal Years (Unaudited)

Fund Budget Program/

No. Unit Job Class Title 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2012/13

2515 101 UNET Anti‐Drug Task Force 2.5 2.5 1.0 1.0 1.0 1.0 1.0 1.0 0.0 0.0

2516 101 Sheriff's State Grants ‐ ‐ ‐ 3.0 1.0 2.0 2.0 0.0 1.0 1.3

2610 101 Mosquito Abatement ‐ ‐ 0.5 1.5 1.5 1.2 1.4 1.4 1.4 1.5

Total Public Protection 188.7 190.7 196.6 204.5 207.6 186.8 183.3 159.0 126.1 129.6

Public Ways and Facilities

1001 256 PW Administration & Engineering 10.1 10.1 9.7 11.6 9.4 9.1 7.8 5.5 4.5 5.3

2101 303 Road Maintenance 19.8 20.3 19.3 19.3 22.8 20.0 21.3 20.1 20.1 20.4

2101 305 Council of Governments (COG) 9.0 9.0 9.0 9.5 9.5 9.5 8.0 8.0 8.0 8.0

2700 200 CSA Maintenance & Operations 3.1 3.1 3.1 3.1 3.2 1.8 1.8 1.1 1.1 0.0

Total Public Ways and Facilities 41.9 42.4 41.0 43.4 44.9 40.4 38.8 34.6 33.7 33.6

Health and Sanitation

2221 406 Mental Health 25.8 26.8 36.0 36.5 36.5 42.3 42.3 42.3 42.3 43.3

2225 409 Substance Abuse Treatment Program 10.0 10.0 7.8 8.8 8.8 11.8 11.8 11.8 11.8 11.8

2214 400 Public Health Programs 34.4 34.4 37.3 37.0 36.8 27.6 24.5 20.7 18.7 19.9

3010 101 Integrated Waste Management & Resource Recovery 1.2 1.2 1.2 2.2 2.2 2.3 2.3 2.3 2.0 2.0

Total Health and Sanitation 71.4 72.4 82.2 84.5 84.2 83.9 80.8 77.0 74.7 77.0

Public Assistance

2211 500 Human Services Agency 60.5 64.5 65.0 67.0 69.0 67.5 72.3 71.5 70.5 81.0

2211 532 Family Resource Center (FRC) 5.0 ‐ 4.0 ‐ 0.0 0.0 0.0 0.0 0.0 0.0

2212 512 In‐Home Supportive Services Public Authority 1.5 1.5 1.5 1.5 1.5 1.5 2.0 2.0 1.0 1.0

2216 101 Emergency Medical Services 1.3 3.0 3.0 3.0 3.0 3.0

2404 12 C.S.W.D. Department 13.3 13.5 10.8 9.8 9.8 13.3 13.0 10.3 8.3 8.0

2550 101 Migrant Labor Housing Center 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0

4101 101 First 5 ‐ ‐ ‐ ‐ 3.0 3.0 3.0 3.0 2.0 2.0

Total Public Assistance 83.3 82.5 84.3 81.3 87.5 91.3 96.3 92.8 87.8 98.0

Education

1001 610 County Library 7.5 7.5 9.0 9.0 9.0 8.5 8.0 7.5 5.0 5.0

1001 620 Ag Extension / Farm Advisor 1.0 1.0 1.0 1.0 1.0 1.0 0.8 0.0 0.0 0.0

Total Education 8.5 8.5 10.0 10.0 10.0 9.5 8.8 7.5 5.0 5.0

Recreation and Culture

1001 700 Veterans Memorial Park 1.2 1.2 1.2 1.2 1.2 0.9 0.9 0.9 0.9 0.7

1001 702 Parks 0.7 0.7 0.6 1.2 1.2 0.9 0.9 0.7 0.7 0.7

Total Recreation and Culture 1.8 1.8 1.7 2.3 2.3 1.8 1.8 1.6 1.6 1.4

Total Positions 456.5 460.4 479.7 494.9 504.9 484.4 480.0 438.3 379.3 399.0

105


SINGLE AUDIT REPORT

JUNE 30, 2014

COUNTY OF SAN BENITOSingle Audit Report

For the Year Ended June 30,2014

Table of Contents

Independent Auditor's Report on Internal Control over Financial

Reporting and on Compliance and Other Matters Based on an

Audit of Financial Statements Performed in Accordance with

Government Auditing Standards

Independent Auditor's Report on Compliance for each Major

Program and on internal control over compliance required

by OMB Circular A-133

Schedule of Expenditures of Federal Awards

Notes to Schedule of Expenditures of Federal Awards

Schedule of Findings and Questioned Costs

Supplementary Information:

L1HEAP 13B-5032

CSBG 13F-3034

Page

1

3

6

8

9

11

12


INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ONCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of SupervisorsCounty of San BenitoHollister, California

We have audited, in accordance with the auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government AUditing Standards issued by theComptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, the aggregate discretely presented component units, each major fund, and the aggregateremaining fund information of County of San Benito, State of California, as of and for the year ended June 30,2014, and the related notes to the financial statements, which collectively comprise County of San Benito, State ofCalifornia's basic financial statements, and have issued our report thereon dated March 30, 2015.

Internal Control over Financial Reporting

In planning and performing our audit of the financial statements, we considered County of San Benito, State ofCalifornia's internal control over financial reporting (internal control) to determine the audit procedures that areappropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but notfor the purpose of expressing an opinion on the effectiveness of County of San Benito, State of California'sinternal control. Accordingly, we do not express an opinion on the effectiveness of County of San Benito, State ofCalifornia's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management oremployees, in the normal course of performing their assigned functions, to prevent, or detect and correct,misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internalcontrol, such that there is a reasonable possibility that a material misstatement of the entity's financial statementswill not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or acombination of deficiencies, in internal control that is less severe than a material weakness, yet important enoughto merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this sectionand was not designed to identify all deficiencies in internal control that might be material weaknesses or,significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internalcontrol that we consider to be material weaknesses. However, material weaknesses may exist that have not beenidentified.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether County of San Benito, State of California's financialstatements are free from material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and materialeffect on the determination of financial statement amounts. However, providing an opinion on compliance withthose provisions was not an objective of our audit, and accordingly, we do not express such an opinion. Theresults of our tests disclosed no instances of noncompliance or other matters that are required to be reportedunder Government Auditing Standards.

We noted certain matters that we reported to management of County of San Benito, in a separate letter datedMarch 30, 2015.



Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprisethe County of San Benito basic financial statements. The supplementary information on pages 12 through 14 ofthis report is presented for purposes of additional analysis and are not a required part of the basic financialstatements.

The L1HEAP and CSBG statements are the responsibility of management and were derived from and relatedirectly to the underlying accounting and other records used to prepare the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the basic financial statementsand certain additional procedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the basic financial statements or to the basic financial statementsthemselves,' and other additional procedures in accordance with auditing standards generally accepted in theUnited States of America. In our opinion, the L1HEAP and CSBG statements are fairly stated, in all materialrespects, in relation to the basic financial statements as a whole.

Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and theresults of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or oncompliance. This report is an integral part of an audit performed in accordance with Government AuditingStandards in considering the entity's internal control and compliance. Accordingly, this communication is notsuitable for any other purpose.

. 91 / /J . A - - - 1- . /ll1lls~·9~Jr-Hollister, CaliforniaMarch 30, 2015

2


INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAMAND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133

To the Board of SupervisorsCounty of San BenitoHollister, California

Report on Compliance for Each Major Federal Program

We have audited County of San Benito, State of California's compliance with the types of compliancerequirements described in the OMS Circular A-133 Compliance Supplement that could have a direct and materialeffect on each of County of San Benito, State of California's major federal programs for the year ended June 30,2014. County of San Benito, State of California's major federal programs are identified in the summary of auditor'sresults section of the accompanying schedule of findings and questioned costs.

Management's Responsibility

Management IS responsible for compliance with the requirements of laws, regulations, contracts, and grantsapplicable to its federal programs.

Auditor's Responsibility

Our responsibility is to express an opinion on compliance for each of County of San Benito, State of California'smajor federal programs based on our audit of the types of compliance requirements referred to above. Weconducted our audit of compliance in accordance with auditing standards generally accepted in the United Statesof America; the standards applicable to financial audits contained in Government Auditing Standards, issued bythe Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, andNon-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit toobtain reasonable assurance about whether noncompliance with the types of compliance requirements referred toabove that could have a direct and material effect on a major federal program occurred. An audit includesexamining, on a test basis, evidence about County of San Benito, State of California's compliance with thoserequirements and performing such other procedures as we considered necessary in the circumstances.

We believe that our audit provides a reasonable basis for our opinion on compliance for each major federalprogram. However, our audit does not provide a legal determination of County of San Benito, State of California'scompliance ..

Opinion on Each Major Federal Program

In our opinion, County of San Benito, State of California, complied, in all material respects, with the types ofcompliance requirements referred to above that could have a direct and material effect on each of its majorfederal programs for the year ended June 30, 2014.

Report on Internal Control over Compliance

Management of County of San Benito, State of California, is responsible for establishing and maintaining effectiveinternal control over compliance with the types of compliance requirements referred to above. In planning andperforming our audit of compliance, we considered County of San Benito, State of California's internal controlover compliance with the types of requirements that could have a direct and material effect on each major federalprogram to determine the auditing procedures that are appropriate in the circumstances for the purpose of

3



expressing an opinion on compliance for each major federal program and to test and report on internal controlover compliance in accordance with OMS Circular A-133, but not for the purpose of expressing an opinion on theeffectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectivenessof County of San Benito, State of California's internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliancedoes not allow management or employees, in the normal course of performing their assigned functions, to prevent,or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timelybasis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, ininternal control over compliance, such that there is a reasonable possibility that material noncompliance with atype of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timelybasis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,in internal control over compliance with a type of compliance requirement of a federal program that is less severethan a material weakness in internal control over compliance, yet important enough to merit attention by thosecharged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraphof this section and was not designed to identify all deficiencies in internal control over compliance that might bematerial weaknesses or significant deficiencies. We did not identify any deficiencies in internal control overcompliance that we consider to be material weaknesses. However, material weaknesses may exist that have notbeen identified.

Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133

We have audited the financial statements of the governmental activities, the business-type activities, theaggregate discretely presented component units, each major fund, and the aggregate remaining fund informationof County of San Benito, State of California, as of and for the year ended June 30, 2014, and the related notes tothe financial statements, which collectively comprise County of San Benito, State of California's basic financialstatements. We issued our report thereon dated March 30, 2015, which contained unmodified opinions on thosefinancial statements. Our audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the basic financial statements. The accompanying schedule of expenditures of federalawards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a requiredpart of the basic financial statements. Such information is the responsibility of management and was derived fromand relates directly to the underlying accounting and other records used to prepare the basic financial statements.The information has been subjected to the auditing procedures applied in the audit of the financial statements andcertain additional procedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the basic financial statements or to the basic financial statementsthemselves, and other additional procedures in accordance with auditing standards generally accepted in theUnited States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in allmaterial respects in relation to the basic financial statements as a whole.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprisethe County of San Benito basic financial statements. The supplementary information on pages 12 through 14 ofthis report is presented for purposes of additional analysis and are not a required part of the basic financialstatements.

The L1HEAP and CSSG statements are the responsibility of management and were derived from and relatedirectly to the underlying accounting and other records used to prepare the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the basic financial statementsand certain additional procedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the basic financial statements or to the basic financial statementsthemselves, and other additional procedures in accordance with auditing standards generally accepted in theUnited States of America. In our opinion, the L1HEAP and CSBG statements are fairly stated, in all materialrespects, in relation to the basic financial statements as a whole.

4

The purpose of this report on internal control over compliance is solely to describe the scope of our testing ofinternal control over compliance and the results of that testing based on the requirements of OMS Circular A-133.Accordingly, this report is not suitable for any other purpose.

Hollister, CaliforniaMarch 30, 2015

5


Schedule of Expenditures of Federal AwardsFor the Year Ended June 30,2014

Federal Grantor/Pass-Through Grantor/Program Title

Federal

CFDA

Number

Pass-Through

Grantor's

Numbers

FY 2013/2014

Disbursements/

Expenditures

U.S. Department of Education

Passed through the State Department of Mental Health Substance Abuse

and Mental Health Services Administration (SAMHSA)

IDEA-County Office of Education

Total U.S. Department of Education

U.S. Department of Housing and Urban Development

Passed through the State Department of Housing and

Community DevelopmentCommunity Development Block GranVState Program

Helping Hands

Housing Of People With AIDS

Total U.S. Department of Housing and Urban Development

U.S. Department of Justice

Passed through State Office of Emergency Services

Victim Witness

Anti-Drug Abuse Program

Total U.S. Department of Justice

U.S. Department of Labor

WIA -Adult

WIA- Adult

WIA-Adult

WIA - Youth

WIA - Youth

WIA - Youth

WIA - Dislocated Worker



25% CA Multi-Sector Grant

WIA - Rapid Response



Subtotal DOL WIA Cluster

Total U.S. Department of Labor

U.S. Department of Transportation

Passed through State Department of Transportation

Highway Planning and Construction - FHWA



Highway Planning and Construction - FHWAHighway Planning and Construction - FHWA





Highway Planning and Construction - FHWAHighway Planning and Construction - FHWA



Total U.S. Department of Transportation

*Major Program

6

84.027

14.228

14.235

14.541

16.500

16738

17.258 •

17.258 •

17.258 •

17.259 •

17.259 •

17.259 •

17.278 •

17278 •

17.278 •

17.278 •

17.278 •

17.278 •

17.278 •

20.205 •

20.205 •

20.205 •

20.205 •20.205 •

20.205 •

20.205 •

20.205 •

20.205 •

20.205 •

20.205 •

20.205 •

20.205 •

09-14468-1035-01

12-STBG-8410

CA1072B9T0611 0

N/A

VW 13-30-350

BSCC 637-12

M91041/Code201

K386320/Code202

K491041/Code202

K386320/Code 301

K491041/Code 301

K594784/Code 301

K386320/Code 502

K491041/Code 501

K491041/Code 502

13-W067

K491041/Code 540

K491041/Code 541

K386320/Code 541

BRLS-5943(043)

BRLS-5943(056)

BRLO-5943(062)

BRLS-5943(063)HSIPL-5943(060)

STPLX-5943(057)

HSIPL-5943(058)

HSIPL-5943(059)

BRLKS-NBIL(501 )

BRLO-5943(054)

BRLO-NBIL(055)

BRLO-NBIL(531)

HSIPL-5943(064)

$ 17,808

17,808

286,829

106,004

31,036

423,869

47,157

91,728

138,885

4,867

22,023

157,611

5,452

203,205

6,961

53,562

27,283

239,613

60,488

32,744

102,536

18,829

935,174

935,174

123,446

74,834

144,261

91,620154,490

4,01049,388

32,847

121,393

53,195

231,721

290,417

1,598

1,373,220


Schedule of Expenditures of Federal AwardsFor theYear Ended June 30,2014

U. S. Department of Health and Human Services

Passed through the State Department of Social Services

Preservation of Safe and Stable Families 93.556 N/A 45,569

Temporary Assistance for Needy Families 93.558 * N/A 2,885,635

CalWorks 93.558 * N/A 1,531,096Child Welfare 93.558 * N/A 242,636

Child Support Enforcement 93.563 * N/A 1,214,317

Child Welfare-State Grants 93.645 N/A 49,086

Foster Care - Title IV-E 93.658 * N/A 560,375Child Welfare Service 93.658 * N/A 599,536

Foster Care Administration 93.658 * N/A 12,407

CCl - Foster Family Homes 93.658 * N/A 2,547

Adoption Assistance 93.659 N/A 427,289

Independent Living 93.674 N/A 22,496

Subtotal 7,592,989

Passed through the State Department of Health

CDC Public Health Emergency Preparedness (PHEP) 93.069 N/A 126,389

Cities Readiness Initiative (CRI) 93.074 N/A 13,950

California Children's Services (CCS) 93.767 N/A 262,649

Medi-Cal - Title XX 93.778 * N/A 1,712,000

Hospital Preparedness Program (HPP) 93.889 N/A 116,691

Maternal Child Health 93.994 200235-2 125,245

Child Health and Disability Prevention 93.994 N/A 99,198

Child Health and Disability Prevention - Foster Care 93.994 N/A 9,850

Adolescent Family Life Program 93.995 200235.2 53,616

Subtotal 2,519,588

Passed through the State Department of Mental Health Substance Abuse

and Mental Health Services Administration

(SAMHSA) 93.958 1946001347J5 46,071

Substance Abuse Prevention and Treatment 93.959 * N/A 615,836

Medical Assistance Prog - (Fed Fin Participation FFP) 93.778 * 1946001347J5 1,398,592

Subtotal 2,060,499

Passed through State Department of Community Services and Development

low Income Home Energy Assistance Program 93.568 11B-5733 (2,377)

low Income Home Energy Assistance Program 93.568 12B-5832 (2,491)

low Income Home Energy Assistance Program 93.568 13B-5032 89,266

low Income Home Energy Assistance Program 93.568 14B-5032 48,502

Subtotal 132,900

Community Services Block Grant 93.569 13F-3034 112,551Community Services Block Grant 93.569 14F-4434 109,299

Subtotal 221,850

Total Department of Health and Human Services 12,527,826

U.S. Department of Homeland Securitv

FED-HSG - Emergency Management Performance Grant 97.042 2012-0027 136,985

Total U.S. Department of Homeland Security 136,985

Total Expenditures of Federal Awards $ 15,553,767

·Major Program

7


Notes to Schedule of Expenditures of Federal AwardsFor the Year Ended June 30, 2014

Note 1: Basis of Presentation

The accompanying Schedule of expenditures of federal awards (the Schedule) includes thefederal grant activity of the County of San Benito. The information in this Schedule is presentedin accordance with the requirements of OMB Circular A-133, Audits of States, LocalGovernments, and Non-Profit Organizations. Because the Schedule presents only a selectedportion of the operations of the County of San Benito, it is not intended to and does not presentthe financial position, changes in net assets or cash flows of the County of San Benito

Note 2: Summary of Significant Accounting Policies

A. The accompanying Schedule of Expenditures of Federal Awards is prepared on a basisother than that used to record transactions in the accounting records and as reported in thebasic financial statements. Sources of information for preparation of the Schedule ofExpenditures of Federal Awards varies, depending on the accounting practices andreporting requirements of the department implementing the program.

B. Pass-through entity identifying numbers are presented where available.

Note 3: Relationship to Financial Statements

The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree,in all material respects, to amounts reported within the County's financial statements. Federalaward revenues are reported principally in the County's financial statements asintergovernmental revenues in the General and Special Revenue funds.

Note 4: American Recovery and Reinvestment Act - ARRA

There were no expenditures of ARRA funds included in the Schedule of Expenditures of FederalAwards for the County of San Benito for the fiscal year ended June 30, 2014.

8


Schedule of Findings and Questioned CostsFor the Year Ended June 30,2014

Section 1Financial Statements-Summary of Auditor's Results

1. Type of auditor's report issued:

2. Internal control over financial reporting:a. Material weaknesses identified?b. Significant deficiencies identified not

considered to be material weaknesses?

3. Noncompliance material to financial statements noted?

Federal Awards

1. Internal control over major programs:a. Material weaknesses identified?b. Significant deficiencies identified not considered

to be material weaknesses?

2. Type of auditor's report issued on compliancefor major programs:

3. Any audit findings disclosed that are required to beReported in accordance with Circular OMB A-133,Section 510 (a)?

4. Identification of major programs:

CFDA Number20.20593.558

93.56393.658

93.95993.778

17.258, 17.259 and 17.278

5. Dollar threshold used to distinguish betweenType A and Type B programs

6. Auditee qualified as a low-risk auditee underOMB Circular A-133, Section 530?

9

Unmodified

No

None Reported

No

No

None Reported

Unmodified

No

Name of Federal ProgramHighway Planning & ConstructionTemporary Assistance for NeedyFamilies/Child Welfare/Cal WorksChild Support EnforcementFoster Care-Title IV-EIChild Welfare ServiceFoster Family HomesSubstance Abuse Prevent/TreatMedi-Cal-Title XXMedical Assistance Program-FFPWIA Cluster

$466,613

Yes


Schedule of Findings and Questioned CostsFor the Year Ended June 30, 2014

Section 2

Financial Statement Findings

None Reported.

Section 3

Federal Award Findings and Questioned Costs

None Reported.

Section 4

Status of Prior Year Findings and Questioned Costs

None Reported.

10


Supplemental Statement of Revenues & Expenditures

L1HEAP2402048 138-5032

Federal Catalog No. 93.568

FY 13/14 For The Period January 1, 2013-January 31, 2014

Total

ReportedJan 1 2013 July 1201.3 Jan. 1,2014 Total Expenses Total

through through through Audited Contract ProgramJune 30 2013 Dec. 31, 2013 Jan. 31,2014 Costs 10B-5633 BUdget

Grant Revenue $ 25,899.00 $ 88,216.00 $ 1,061.00 $115,176.00 $115,176.00 $ 131,568.00Interest Income

Other Income

Deferred Interest Earned

Deferred Revenue EarnedDeferred grant Revenue

Deferred Interest Earned

Total revenue 25,899.00 88,216.00 1,061.00 115,176.00 115,176.00 131,568.00

Expenditures

AdministrationAdministrative Costs 10,39600 3,554.00 198.00 14,148.00 14,148.00 14,148.00Total Administration Cost 10,396.00 3,554.00 198.00 14,148.00 14,148.00 14,148.00

Program ExpendituresOutreach 3,399 10,984 14,383 14,383 15,036Intake 10,210 8,838 3,751 22,799 22,799 24,058

Assurance 16 4,705 12,819 4,144 21,668 21,668 22,474

Training 98 1,711 1,809 1,809 1,809

ECIP-WPO 490 3,553 4,043 4,043 4,043

Automation Supplemental 36,315 36,315 36,315 50,000

Total Program Expenditures 15,503 30,320 55,194 101,017 101,017 117,420

Total Expenses $ 25,899 $ 33,874 $ 55,392 $ 115,165 $ 115,165 $ 131,568

11

2402027

Revenue

Grant Revenue

Interest Income

COUNTY OF SAN BENITOSupplemental Statement of Revenues and Expenditures

CSBG Contract No. 13F-3034

Federal Catalog No. 93.569

For the Period Jan 1,2013 through December 31,2013

1-Jan-13 Jul-13 Total Total Total

through through Audited Reported Budget

30-Jun-13 Dec-13 Costs Expenses

$ 177,383 $ 68,505 $ 245,888

Total Revenue $ 177,383 $ 68,505 $ 245,888

Expenditures

Administration

Salaries & Wages $ 20,410 $ 10,301 $ 30,711 $ 30,711 $ 31,994

Fringe Benefits 12,697 6,625 19,322 19,322 18,557

Operation Expenses 10,780 9,706 20,486 20,486 23,163

Other Costs

Sub Total Administration Costs 43,887 26,632 70,519 70,519 73,714

Program

Salaries & Wages 23,763 44,602 68,365 68,365 66,131

Fringe Benefits 15,510 23,740 39,250 39,250 38,356

Operation Expenses 13,887 13,474 27,361 27,361 27,699

Other Costs 36,290 4,103 40,393 40,393 39,987

Sub Total Personnel Costs 89,450 85,919 175,369 175,369 172,173

Total All Costs $ 133,337 $ 112,551 $ 245,888 $ 245,888 $ 245,887

12

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