HomeMy WebLinkAboutItem 8.1 Chabot-Las Positas Attch 1
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CITY OF DUBLIN
Fiscal Year 2008-2009
COMMUNITY GROUP!ORGANIZATION
_:':: Yu~': _,:':'-', -' - _' ,,'
ApPLICATION FOR FUNDS
AGENCY NAME: CHABOT- S OSITAS OMMUNTIYCOLLEGEDISTRICTI
PROPOSED PROJECT/PROGRAM NAME:
CITY OF DUBLIN-EMPLOYMENT AND TRAINING SERV
FUNDING AMOUNT REQUESTED: $15,000.
SECTION 2
Page 2 of 16
CITY OF DUBLIN
Fiscal Year 2008-2009
ApPLICATION FOR FUNDS
1. Please select one expense category: 0 Capital X Operating
Mailing Address
Street Address
2. Applicant Information:
City Pleasanton
Robert Kratochvil
Executive Director/Chairperson
Carlo V ecchiarelli
Board President (if applicable)
atochvil@laspositascollege.edu
Email
Email
Please list the Primary Project Contact Person who would be able to answer questions about this application and
project/program during the funding period.
John Alves
Director
Contact Person for ProjectlProgram Job Title
925-485-5266 JAlves@c1pccd.org
Work Phone Email
925-485-5273
Fax
Federal Tax Identification No. (required) 94-167063
City of Dublin Business License No. (required) 10043
SECTION 2
Page 3 of 16
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City of Dublin
Fiscal Year 2008-2009
Application for Funds
3. Proposed Project/Program Information (Do not describe Organization.)
,,,
Please note: City Council Grant F e distribute on eimbursement basis. If your Agency
needs a 100% disbursement at the beginning of the Fiscal Year, please indicate this
below and please provide justification for this need.
DAgency is requesting 100% disbursement at the beginning of the Fiscal Year. If selecting this
option, please provide justification in the blank s below.
X Agency is not requesting 100% disbursement at the begInnmg ofthe Fiscal Year.
If selecting this option, please provide the frequency that reimbursements will
submitted to the City in the blank space below;.e.g.,monthly, quarterly, at project
completion, etc.
Amount of Funds Requested $ 15,000.
(Maximum $25,000 per project.)
Proposed ProjectlProgramN ame:
Proposed ProjectlProgram Date(s~:
End 06/30/2009
We respectfully request the funds be dispersed monthly.
SECTION 2
Page 4 of 16
City of Dublin
Fiscal Year 2008-2009
Application for Funds
a. How would the requested funds be used?
· Describe, in detail, the PRQPOSED PROJECTIPROGRAM (not the Agency).
· Bulleted text is accepta.ble~
· Identify if the proposed proje.cttprogram is a new service, or extension of an
existing one.
· An additional page may be addeq, ifneeded.
Please see attachment~G, pages 1 and 2.
b. How would the PROPOSED PROJECTIPROGRAM address an unmet community
need and improve the quality of life for Dublin residents. Why is this project/program
needed? (Additional page may be added, if needed):
c. What documentation/data/records supporttlle need for this PROPOSED
PROJECT/PROGRAM? Please identify your data sources. (Additional page may be
added, if needed.)
Please see attachment G, page 4.
SECTION 2
Page 5 of 16
Fiscal Year 2008-2009
City of Dublin
Application for Funds
d.
e.
Specify the PROPOSEDPRO;JEC!IPROGR.A:M population to be served.
Projects/programs must be evaluated to de rmine if they are being carried out efficiently
and if project/program goals are bein met. Pleas describe how you plan to mo tor
your project/program's success pact.
· An additional page may be added, if nee
f.
Specify numbers of clients served by agency, then by PROPOSED
PROJECT IPROGR.A:M:
6000
600
SECTION 2
Page 6 of 16
City of Dublin
Fiscal Year 2008-2009
Application for Funds
5. Financial Information - Operating Budget
a. Expense Budget
15,000.
Further Comments/Explanations (if necessary):
* * These budget figures are an . i ated and represent our best estimate.
SECTION 2
Page 7 of 16
City of Dublin
Fiscal Year 2008-2009
Application for Funds
b. Revenue Budget
City of Dublin
Chabot-Las Positas General Employment and
Community College Training Services-City of
District/Tri-Valley Dublin residents (youth
One-Stop Career and adults
Center
Total
Non-Committed/R
(specify source)
NA
TOTAL $342,269.
**This budget is an anticipated number and represents our best estimate. It is not our final budget allocation.
Generally, the Alameda County Workforces Investment Board conveys our final budget allocation in July of each
program year (i.e. July 2007). Therefore, these are anticipated amounts only.
SECTION 2
Page 8 of 16
City of Dublin
Fiscal Year 2008-2009
Application for Funds
6.
General Agency Information
x
Past grant applicants may check this box in lieu of completing item 6 (a-d) if the
program/organizational description the City is correct and current.
a.
List all years that Organization has previouslyreceiv:ed City of Dublin funding (not
Community Development Block Grant- CDBG).
b.
Describe the population(s) served by the Organization.
c.
Describe all the services the Organization currently provides to Dublin residents.
· An additional page may be added, if needed.
d.
Has your agency ever previously received funds from the City of Dublin? If yes,
please specify in what Fiscal Years and the amount received each year.
SECTION 2
Page 9 of 16
City of Dublin
Fiscal Year 2008-2009
Application for Funds
o Only one (1) copy per A!!encv of each of the following is required, even with multiple
projects/programs. su b mitted.
o Applications without the following documents will not be reviewed for funding.
o Please label attachments: ABC et
7. Required Attachments:
o A. Names of Governing Board; .identify current Board officers.
o B.
.
o C. Most recent audit report or tax return (if applicable).
o D. Resolution, letter or other document providing evidence of
Board/Organization approval of application, and date approval was granted.
· Board/Organization approval may bependi
->~ ;:>-\'>-,':,- - "-" --< ,'-'.
o E. Organization's certificate of insurance showing coverage for liability and
workers' compensation.
of. Application Verification Declaration Signature Page.
o G. Signed affidavit form from each collaborating agency named in proposed
project/program plan (if applicable).
o H. Copy of IRS Letter of Determination indicating tax exempt status.
SECTION 2
Page 10 of 16
City of Dublin
Fiscal Year 2008-2009
Attachment D
Application for Funds
ApPLICATION VERIFICATION
I attest that the information contained in this FY 2008.:2009 grant application is accurate and that
the funds requested will not supplant any ot secured by the organization.
Attached is a resolution, letter, or other document pr ding evidence that the Board of Directors
approved the application as submitted. Successful applicants are required to submit a summary
report as soon as possible after submittin the reimbursement re uest, but not later than August
30,2009. Failure to submit.a report tin i r future funding.
Robert Kratochvil
Executive Director
Signatures:
Carlo Vecchiarelli
Board President/Chairperson
Date
**16 page Grant application submitted electronically pending board approval**
John Alves
Directo r,
Submitted Grant application electronically
1/23/08
SECTION 2
Page 11 of 16
City of Dublin
Fiscal Year 2008-2009
Application for Funds
COLLABORATION AGENCY
AFFIDAVIT FORM
o This form is to be completed by each collaborating organization as named by the
applicant agency in the proposed prQject/program.
o Completed forms must be submitted at time of application.
Collaborating Agency Name:
Agency Division/Department:
Project/Program Title:
Project/Program Role Description (i.e., facility space, staff support, etc.):
Title
Agency ProjectZProgram Contact Person
Phone
Email
I attest that the applicant agency and our organization agree to work collaboratively to implement
the proposed project/program as identified in the FY 2008-2009 funding application.
Executive Director
Date
Project/Program Contact Person
Date
SECTION 2
Page 12 of 16
CITY OF DUBLIN
Fiscal Year 2008-2009
COMMUNITY GROUP/ORGANIZATIONAL FUNDING PROGRAM
REQUEST FOR REIMBURSEMENT
PROJECTIPROGRAM NAME
AGENCY NAME
MAILING ADDRESS FORREIMBURSEMENT:
MENT REQUESTED THIS PERIOD
$
TOTAL Amount;, e
(If requesting project/program "start-up" funding, please describe initial funding use above.)
I attest that the above listed expenses are accurate and true and have been used as represented in
the approved funding application.
Submitted by:
Signature:
Date:
SECTION 2
Page 13 of 16
CITY OF DUBLIN
Fiscal Year 2008-2009
COMMUNITY GROUP/ORGANIZATIONAL FUNDING PROGRAM
SUMMARY REpORT
(Summary Report must be completed and submitted prior to August 31, 2009.)
TOTAL REIMBURSEMENT RECEIVED
$
AGENCY NAME
MAILING ADDRESS:
TELEPHONE:
PROJECTlPROGRAM NAME:
TOTAL FUNDING AMOUNT AWARDED
$
1.) How has the PROJECTIPROGRAM addressed anunmet community need and improved
the quality of life for Dublin residents. (Additional page may be added, if needed):
2.) Please evaluate the success of your project/program. Were the goals outlined in the
application met? Was the project/program carried out efficiently? Please use the objectives
identified in your application to discuss your program/project's success and impact. Include any
documentation/data/records you have that support your conclusions.
SECTION 2
Page 14 of 16
City of Dublin
Fiscal Year 2008-2009
SUMMARY REPOR T
3) How many total participants were.served bytliis project/program?
',",
, -, ~
How many of those participants are Dliblin residents?
I attest that the above listed information is a
Submitted by:
Signature:
SECTION 2
Page 15 of 16
AGREEMENT BETWEEN
CITY OF DUBLIN
AND
Chabot-Las Positas Community College District/Tri-Vallev One-Stop Career Center
THIS AGREEMENT, dated for identificationthis~ day of _ 2008, is entered into
between the City of Dublin ("City") and TVOS.
RECITALS
A. TVOS has asked City to contribute $15,000. (Fifteen Thousand Dollars) for use by
TVOS to cover operational costs in order to provide the services as described in Exhibit
A. The services rendered pursuant to this agreement will be for the period July 1,2008
through June 30, 2009.
B. City has determined that it is in the interest oftheresidents of the City of Dublin to make
a donation of $ (. Dollars) for such purpose, provided certain
conditions are met to ensure that the services will benefit the residents of City.
AGREEMENT
City and TVOS agree as follows:
1. Recitals
The foregoing recitals are true and correct and are part ofthis agreement.
2. City Donation
City shall donate $ ( . Dollars) to be used by TVOS to be used for
operational support for Employment and Training Services as described in Exhibit A to
this Agreement. The donation shall be paid upon invoice to the City.
3. Records
TVOS shall maintain records for project/program review, evaluation, audit and/or other
purposes and make them available to City upon request.
4. Periodic Reports
Upon request by City, TVOS shall provide reports describing the progress made by
TVOS accomplishingthegoals and objectives outlined in the work plan.
CITY OF DUBLIN
Dated:
By:
Richard C. Ambrose, City Manager
Dated:
By:
John Alves, Director
SECTION 2
Page 16 of 16
Attachment A
CHAB()T-Ll\S P()SITAS
COMMUNlT'I' COLLEGE DISTRICT
Members of the Board
· Dr. Hal G. Gin (Board Secretary) represents Trustee Area 6 (Hayward, San
Lorenzo) since 2005.
· Dr. Barbara Mertes represents Trustee Area 7 (Livermore and portions of
Pleasanton) since 2000.
· Ms. Isobel F. Dvorsky represents Trustee Area 2 (San Leandro) since 1985.
· Mr. Carlo Vecchiarelli (Board President) represents Trustee Area 5 (Pleasanton,
Dublin, Sunol) since 2004.
· Mr. Donald L. "Dobie" Gelles represents Trustee Area 4 (Castro Valley and
portions of Oakland) since 1998.
· Dr. Alison Lewis represents Trustee Area 1 (Hayward) since March of 1991.
· Dr. Arnulfo Cedillo represents Trustee Area 3 (Union City and South Hayward)
since 1985.
Attachment B
Connectin;? People with Opportunities.for EmjJ/IJyment
Chabot-Las Positas College Community College District
Tri- Valley One-Stop Career Center
For Fiscal Year 2007-2008
Revenue:
Grants:
Alameda County Workforce Investment Board $327,269.
*Inc1udes proposed project (City of Dublin) 15,000.
Total Revenue
Budgeted Expenses:
Prof. Experts/Prog. Leaders
OAASDHI Other Class Employees
SUI Other Class Employees
WCI Other Class Employees
ARS-Class Other
Office Supplies
Special Printing
Program/Operating Supplies
Periodicals
Program Contingencies
Travel Expense
Conference
Institutional Memberships
Telephone Service
Rental Facilities
Special Advertising
Postal & Delivery Services
Software Licensing
Student Transportation
Business Expense
Other Equipment
Computer/Software
Scholarships
Books/Supplies
Total
342.269.
$206,928.
4,200.
600.
4,000.
11,000.
1,000.
500.
300.
300.
25,869.
3,000.
2,000.
550.
3,200.
55,073.
650.
399.
3,200.
500.
1,000.
500.
500.
1,000.
1,000.
$327,269.
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CHABOT-LAS POSITAS
COMMUNIIY COLLEGE DISTRlCT
I
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W.roSLTAS
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ANNuAL FlNANCIAL REpORT
JUNE 30, 2006
TABLE OF CONTENTS
JUNE 30, 2006
FINANCIAL SECTION
Independent Auditors' Report
Management's Discussions and Analysis
Statements of Net Assets
Statements of Revenues, Expenses, and Changes in Net Assets
Statements of Cash Flows
Notes to Financial Statements
2
4
15
16
17
19
SUPPLEMENTARY INFORMATION
District Organization
Schedule of Expenditures of Federal Awards
Schedule of Expenditures of State Awards
Schedule of Workload Measures for State General Apportionment
Schedule of Annual Apprenticeship Hours of Instruction
Reconciliation of Annual Financial and Budget Report with Fund Financial Statements
Reconciliation of Governmental Fund Balance Sheets to the Statement of Net Assets
Note to Supplementary Information
43
44
45
46
47
48
49
50
INDEPENDENT AUDITORS' REPORTS
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
Report on Compliance with Requirements Applicable to Each Major Program
and Internal Control over Compliance in Accordance with OMB Circular A-133
Report on State Compliance
52
54
56
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Summary of Auditors' Results
Financial Statement Findings and Recommendations
Federal Awards Findings and Questioned Costs
State Awards Findings and Questioned Costs
Summary Schedule of Prior Audit Findings
59
60
61
62
65
FINANCIAL SECTION
1
f'
INDEPENDENT AUDITORS' REPORT
Board of Trustees
Chabot-Las Positas Community College District
Pleasanton, California
We have audited the accompanying basic financial statements of the Chabot-Las Positas Community College
District (the District) as of and for the years ended June 30, 2006 and 2005 as listed in the table of contents.
These financial statements are the responsibility of the District's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the am01mts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall basic financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial
position of the Chabot-Las Positas Community College District as of June 30, 2006 and 2005, and the respective
changes in financial position and cash flows, for the years then ended in confonnity with accounting principles
generally accepted in the United States of America.
The Management's Discussion and Analysis, as listed in the Table of Contents, is not a required part of the basic
financial statements, but is supplementary information required by accounting principles generally accepted in the
United States of America. This supplementary information is the responsibility of the District's management We
have applied certain limited procedures, consisting principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit the
. information and express no opinion on it.
In accordance with Government Auditing Standards, we have also issued our report dated April 27, 2007, on our
consideration of the District's internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of or testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
2
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements. The supplementaIy information listed in the table of contents,
including the Schedule of Expenditures ofFedera1 Awards, which is required by U.S. Office of Management and
Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such information bas
been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion,
are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Vc:u.r-\..uu. 'K. \T~)D~
Pleasanton, California \J
April 27, 2007
L CD "l'tY
l
3
MANAGE:MENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
Fonrth Year of GASB 34 Acconntin2' Standards
In June 1999, the Governmental Accounting Standard's Board ("GASB") released Statement No. 34, "Basic
Financial Statements and Management's Discussion and Analysis for State and Local Governments, II which
established new reporting formats for annual statements. In November 1999, GASB released Statement No. 35,
"Basic Financial Statements and Management's Discussion and Analysis for Public Colleges and Universities,"
which applied the new reporting models to public colleges and universities. In its "Accounting Advisory No.
2001-01 ", the State Chancellor's Office opined that the California Community Colleges would best benefit from,
and would "therefore implement," the business-type activities ("BTA") reporting model, as outlined inGASB
Statement No. 34.
The annual report consists of three basic financial statements that provide information on the District as a whole:
the Statement of Net Assets; the Statement of Revenues, Expenses, and Changes in Net Assets; and the Statement
of Cash Flows. These statements are designed to emulate corporate presentation models, whereby all District
activities are consolidated into one total. The focus of the Statement of Net Assets is designed to be similar to
"bottom line" results for the District. This statement combines and consolidates current financial resomces (short-
term spendable resources) with capital assets. The Statement of Revenues, Expenses, and Changes in Net Assets
focuses on both the gross costs, and the net costs, of District activities, which are supported mainly by property
taxes, state apportionment, and other state revenues. This approach is intended to surmnarize and simplify the
analysis of cost of various District services to students and the public.
The following discussion and analysis provides an overview of the District's financial activities.
Financial and Enrollment Hil!hlil!hts
)> As of June 30, 2006, the District's total net assets are $111,569,355. Total net assets of the District increased
$8.9 million, or about 8.7%, over the previous year, due primarily to the net increase in capital invesiments
associated with the Measure B Bond fund.
)> The voters within the bOlmdaries of the Chabot-Las Positas Community College District approved Measme B
on March 4, 2004. The District, by virtue of this voter approval has the authority to issue up to $498 million
in General Obligation Bonds over the next several years. The Board authorized the first issuance of bonds
totaling $100 million dollars and the proceeds were in the possession of the District on August 19,2004.
During this fiscal year the Board authorized the District to refinance the original issuance of the Measure B
Bonds.
)> The District's Budget was designed to fund faculty, staff, direct program expenditures and support services to
serve 17,031, full-time equivalent students for General Apportionment purposes for the 2005-06 year.
Although, the actual reported FTES of 16,538 for 2005-06 was below budgeted target, it still resulted in an
increase of202 FIES from 2004-05 and student demand for services remained strong.
)> The District's salary expenses increased 8%, benefit expenses increased 17.6% and expenses for supplies,
materials, capital outlay, student aid and other expenses and services increased $122.3 million of which $95
million are direct expenses related to the refinancing of Measure B Bond Funds and approximately $20
million are due to increased construction and capital outlay activity.
4
. MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
~ Enrollment and enrollment growth: The State budget provided a 9.6% increased funding level to expand
system-wide capacity by 30,000 full-time students and also increase funding per student (FTES) by $303, or
6.6%.
~ Equalization: $30 million is provided to equalize credit rates among districts. These funds allow 58 districts
to increase their funding per credit FfES toward the 90th percentile (Los Angeles CCD). This represents
approximately $0.52 million dollars of equalization funding for the District.
~ Scheduled Maintenance and Instructional Equipment Block Grant: Funding for these purposes
experienced an increase of $2.4 million dollars statewide for 2005-06.
~ Cost-of-Iiving adjustment The budget provides a 4.23% cost-of-1iving adjustment for apportionments and a
1.76% cost-of-living adjustment for some state funded categorical programs (Matriculation, EOPS and
DSPS).
~ Enrollment Fee: Dming the 2005-06, the enrollment fees charged remained $26 per unit.
*" The District's General Fund operating deficit at the end of the fiscal year was $1.67 million dollars.
FULL-TIME EQUIVALENT STUDENT (FTES) ENROLLMENTS
1993-1994 9,235 -3.8 3,419 -4.6 12,704 -3.6
1994-1995 8,593 -7.0 3,197 -6.5 11,790 -7.2
1995-1996 9,007 4.8 3,603 12.7 12,610 7.0
1996-1997 9,354 3.9 3,820 6.0 13,174 4.5
1997-1998 9,171 -2.0 4,098 7.3 13,269 1.0
1998-1999 9,636 5.1 4,581 11.8 14,217 7.1
1999-2000 9,868 2.4 4,678 2.1 14,546 2.3
2000-2001 10,005 1.4 4,982 6.5 14,987 3.0
.
2001-2002 10,569 5.6 5,508 10.6 16,078 7.3
2002-2003 10 ,928 3.4 6,120 11.1 17,048 6.0
2003-2004 10,326 -5.8 5,707 -7.2 16,033 -6.3
2004-2005 10,477 1.4 5,886 3.0 16,363 2.0
2005-2006 10,367 -1.1 6,171 4.6 16,538 1.1
2006-2007 10,422 1.0 6,447 5.0 16,869 2.0
Projected
5
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
Statement of Net Assets
The Statement of Net Assets includes all assets and liabilities using the accrual basis of acconnting, which is
similar to the acconnting method used by most private-sector institutions. Net assets, the difference between
assets and liabilities, are one way to measure the financial health of the District. Total net assets of the District
increased $8.9 million., or about 8.7%, over the previous year, due primarily to the net increase in capital
investments associated with the Measure B Bond fund.
ASSETS 2006 2005 2004
Current Assets
Cash and short-term investments $ 17,921,729 $ 15,862,922 $ 17,274,212
Receivables 17,211,739 14,790,351 10,163,688
Inventories, prepaid expenses and other 2,090,639 2,711,649 1,178,311
Total Current Assets 37,224,107 33,364,922 28,616,211
Non-current assets
Cash and investment restricted 112,357,404 113,685,188 8,095,379
Capital assets, net 101,070,579 83,954,287 69,891,705
Total Noncurrent Assets 213,427,983 197,639,475 77,987,084
TOTAL ASSETS 250,652,090 231,004,397 106,603,295
LIABILITIES
Current Liabilities
Acconnts payable, and accrued liabilities 11,128,966 11,606,821 6,041,923
Deferred revenues 5,934,889 5,419,601 3,758,089
Amonnts held in trust 1,213,400 1,095,130. 973,024
Long-term liabilities - current portion 9,511,769 7,011,024 727,311
Total Current Liabilities 27,789,024 25,132,576 11,500,347
Noncurrent Liabilities
Long-term liabilities 111,293,711 103,222,288 11,328,192
TOTAL LIABILITIES 139,082,735 128,354,864 22,828,539
Net Assets
Investment in capital assets, net of debt 79,374,369 73,563,079 62,888,955
Restricted 13,966,819 18,012,225 7,498,406
Unrestricted 18,228,167 11,074,229 13,387,395
TOTAL NET ASSETS $ 111,569,355 $ 102,649,533 $ 83,774,756
The priinary components of cash and short-term investments are the general-fund ending balance ($12.5 million),
composed of the 5% general reserve for economic uncertainties, designated reserves committed to specific
purposes, e.g., one-time monies initiatives and carryover and the restricted funds ending balance; debt-funding for
the District's life-time, retiree health benefits ($2.6 million); and property sale fund-District owned property in
Castro Valley (Nike site - $1.96 million).
6
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30,2006
Accounts receivable primarily represents fimding owed to the District by Federal, State and local governments, as
well as other sources such as tuition and fees. State apportionment and other state receivables is approximately
$10.6 million. Local grants receivable by District is approximately $1.7 million. State grants receivable makes
up another $0.4 million, and the total owed to the District by the Federal government is an additional $0.3 million,
and student receivables is approximately $23 million.
Tbe primary components of the 2005-06 increase in accounts receivable were the $2.8 million deferral of the June
apportionment payment, the $7.5 million state reimbursement claim for th~ construction costs of the LPC
Multidisciplinary Building, and the 4th quarter interest accrual of $1.3 million primarily associated with the
Measure B Bond Fund.
Inventories and prepaid items respectively represent inventory for the Bookstore, and prepayments for: Measure B
Bond election and advertising; and the first half of principal and interest debt service payment for the District
office Lease Revenue Bond.
Restricted cash and investment of $112 million consists of funds related to the Measure B Bond Funds totaling
$96.1 million, associated required reserves of $12 million which are deposited in a debt service fimd held by
Alameda County, and an additional $3.9 million of other restricted funds. The balance of the cash and investment
includes cash deposit of other major funds held in the County Treasury and other banking and financial
institutions. Net capital assets represent the Districfs original investment in land, site improvements, buildings
and equipment, less accumulated depreciation.
Accounts payable and accrued liabilities primarily represent year-end accruals for services and goods received by
the District during fiscal year 2005-06, for which payment would not be made nntil 2006-07. The accOlmts
payable amount primarily represents debt on vendor invoices. Accrued liabilities principally represent vendor
invoices in the amount of approximately $8.3 million and deferred salaries and benefits payable for the months of
June and July, which totals $1.8 million.
Deferred revenues represent prepayments received by the District, for which the amounts have yet to be earned.
Of this amount, $3.4 million represents student tuition and registration fees, received during 2005-06, for the
2006-07 summer and fall terms. The other $2.4 million represents funding for grants and contracts, whose terms
and conditions extend beyond the 2005-06 fiscal year. The $0.5 million increase in 2005-06 is directly due to
deferral of contract education revenue. .
Other current liabilities are composed of that portion of long-term lease and financing debt'that is to be paid
during 2006-07.
Tbe District's non-current liabilities primarily consist of: the accumulated liability for accrued employee
compensated absences ($1.5 million); the remaining debt on the Measure B Bond Fund ($104.8 million); the
remaining debt on the lease revenue bonds payable for the purchase of the District office and capitalized lease
obligations for the purchase of various equipment throughout the District ($30 thousand), and other long term
liability including bond premiums of $14.5 million.
7
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
Net Assets - June 30,2006
Unrestricted
16%
~
~-~
Capital Assets
71%
The largest component of the District's "net assets" is the investment in capital assets (net of related debt), $79.4
million. This represents the District's initial cost for property, plant, and equipment, less accumulated
depreciation, less any remaining debt used for the initial purchase. The next largest component is $18.2 million in
unrestricted assets, of this amount $13.96 million has been set aside for the 5% general reserve for economic
uncertainties, designated reserves committed to specific pUIposes, restricted reserves required by law and
undesignated reserves,. The remaining $14.0 million is the District's "restricted assets". which represents assets
whose use is earmarked for specific purposes, such as grant and construction projects. The primary component of
the 2005-06 increase in net assets is due primarily to the net increase in capital investments associated with the
Measure B Bond Fund.
Statement of Revenues, Expenses, and Changes in Net Assets
The Statement of Revenues, Expenses and Changes in Net Assets represents the financial results of the District's
"operations," as well as its "non-operating activities." The distinction between these two activities involves the
concepts of "exchange" and "non-exchange." An operating activity is one in which a "direct payment"/exchange
is made (by one party to another) for the receipt of specified goods or services, i.e., the payor is the one receiving
benefit. As an example, tuition fees, paid by a student, is an "exchange" for instructional services. Likewise,
grant and contract funding received (on the condition that the District provides specific/contracted services), is
also an "exchange." Both are therefore recorded as "operating revenue." The receipt of state apportionments and
property taxes, however, do not include this "exchange" relationship between "payment" and the "receipt of
benefit." Such revenues are deemed "non-exchange" transactions, and are therefore treated as "non-operating"
activities.
Because the primary sources of funding that support the District's instructional activities comes from state
apportionment, and local property taxes, tbe financial results of the District's "operations" will result in a net
operating loss.
8
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
The primary components of "tuition and fees" are the $26 per unit enrollment fee that is charged to all students
registering for classes, and the additional $156 per unit fee that is charged to all non-resident students. The
discrepancy between these fees is due to the fact that resident student instruction is largely subsidized by local
property taxes and state apportionment. Non-resident students must pay for the full cost of instruction.
Respectively, these two revenue-streams account for $6.5 and $1.2 million. Another $1.0 million is collected in
the form of parking permits. The remainder is collected from an assortment of other student fees.
The largest component of the District's operating revenues is non-capital grants and contracts. Of these, the
largest sub-components are from funding received from the Federal grants ($9.3 million) to include funding for
vocational training and higher education programs and State grants ($6.8 million) for categorical programs, such
as DSP&S, EOP&S, and Matriculation to name a few. Included in local grants and contracts ($6.2 million) are all
of the contracted education services, as well as all other, "miscellaneous service-revenue received by the District. .
The revenue for auxiliary enterprises consists primarily of revenue from the District's bookstore and the current
portion of the retirees unfunded medical benefit liability. These two enterprise operations account for $3.9
million and $2.6 million dollars respectively.
The principal components of the District's non-operating revenue are: non-capital state apportionment, local
property taxes, non-capital grants and contracts, other. state funding, and interest income. All of this revenue is
received to support the District's instructional activities.
The "state apportionments, capital" revenues principally represent state funding for state capital projects and
deferred maintenance programs.
Total Revenue - June 30, 2006
Auxiliary Enterprise
10.%
Internal Service
7%
Tuition and Fees
27%
9
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
OPERATING REVENUES
Tuition and fees
Grants and contracts, noncapital
Auxiliary enterprises
Internal service charges
Total operating revenues
OPERATING EXPENSES
Salaries and benefits
Supplies, materials and other operating
Equipment, maintenance and repairs
Depreciation
Total operating expenses
Operating loss
NON-OPERATING REVENUES
(EXPENSES)
State apportionments, non capital
Local property taxes
State taxes and other revenue
Investment income
Other non-operating revenues and
expenditures
Total non-operating revenues
Loss before other revenues,
expenses, gains or losses
State appOrtionments, capital
Increase/decrease in net assets
Net assets - beginning of year
Net assets - end of year
2006
$ 10,295,151
21,477,956
3,900,303
2,581,824
38,255,234
80,890,262
27,106,481
193,834
3,659,662
111 ,850,239
(73,595,005)
40,253,325
36,660,457
2,952,660
2,706,643
(8,174,323)
74,398,762
803,757
8,116,065
8,919,822
102,649,533
$ 111,569,355
2005
$ 9,718,844 $
24,380,289
4,114,302
2,151,520
40,364,955
74,821,033
28,057,741
1,971,317
2,522,310
107,372,401
(67,007,446)
36,632,704
35,514,690
1,774,015
2,392,374
(1,480,804)
74,832,979
7,825,533
11,049,244
18,874,777
83,774,756
$ 102,649,533 $
2004
8,789,144
17,139,384
4,191,839
30,120,367
67,609,459
22,425,224
1,781,978
2,651,762
94,468,423
(64,348,056)
27,378,401
31,109,158
2,529,602
337,278
90,201
61,444,640
(2,903,416)
2,392,922
(510,494)
84,285,250
83,774,756
The largest component of the District's operating expense is the cost associated with salaries and benefits.
. Approximately 73% percent ofthe total expense is spent in this area. Supplies and other expenses accOlmt for an
additional 24% of total expenses and depreciation and equipment maintenance and utilities account for the
remainder. The supplies and other expense category includes insurance premiums, facilities rental, equipment
repair, as well as supplies and a host of other expenses necessary to the operation of the District.
10
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
Operating Expenses - June 30, 2006
Equipment and
Depreciation
3%
Supplies and Other
Expenses
24%
Benefits
18%
Operating Expenses by Functional Classification
Operating Expenses by Function
Instructional activities
Academic support
Student services
Operation and maintenance of plant
Institutional support
Community services and economic development
Ancillary services, auxiliary services
Student aid
Physical property
Depreciation
Total Operating Expenses by Function
2006
$ 46,565,724
7,222,639
10,993,231
7,986,789
13,312,053
1,201,903
10,636,585
8,805,847
1,465,806
3,659,662
$ 111,850,239
Salaries
55%
2005
$ 44,611,863 $
3,745,294
14,448,481
6,876,030
19,238,756
918,744
2,874,200
9,194,992
2,941,731
2,522,310
$ 107,372,401 $
2004
37,832,015
3,548,220
16,895,372
8,856,134
11 ,881,189
981,864
1,798,607
7,117,532
2,905,728
2,651,762
94,468,423
The Functional Expense chart incorporates all District funds appropriations for fiscal year 2005-06 and as
required in accordance with GASB Statement No. 35, a depreciation expense has been added. In 2005-06, the
District granted a salary increase of 5.62%. The greatest expense in 2005-06 was in the area of instruction at
42%. Institutional support totaled 12% and academic support was 6%. These costs were accommodated by
increases in non-capital apportionment revenue and categorical funding for part time faculty salary increase,
which the District also received during this period.
11
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
The Student Services expense (10%) includes counseling and guichince services and expenses associated with a
number of state and categorical programs to include, Matriculation, Disabled Student Services Program (DSP &
S), Extended Opportunity Programs & Services (BOPS), Financial Aid Administration, and Veteran Services.
Student aid was 8%.
The bulk of the ancillary services and auxiliary operations percentage (10%) encompasses the bookstore
operation. Also included in this category are expenses. for the child care center, contract education department,
food service operation, parking operation, and student and co-curricular activities. In prior years the child care
center expenses were included with instructional activities.
The Community Services and Economic Development (1 %), includes community services recreation, classes, and
facility use. Plant Maintenance and Operation was 7%. The smallest functional expense percentage is in the area
of the physical property category (1%), and depreciation (3%) which consists of a number of building
improvements and alterations that took place throughout the District.
Operating Expenses by Functional Classification - 2006
Physical Property
1%
Depreciation
3%
Auxiliary Services
10%
Instruction
42%
Institutional Support
12%
Operation and Maintenance of
Plant
7%
Student Services
10%
Academic Support
6%
12
MANAGE:MENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
Statement of Cash Flows
The Statement of Cash Flows presents detailed information about the cash activity of the District during the year.
The statement is divided into five parts. The first part deals with the operating cash flows, and shows the net cash
used by the operating activities of the District The second section reflects cash flows from non-capital financing
activities. The third section deals with the net cash used by financing activities related to the acquisition of capital
and related items. The fourth section reflects the cash received from investing activities, and shows the purchases,
proceeds, and interest received from investing activities. The fifth section, (not summarized here) reconciles the
net cash activity to the net operating loss on the Statement of Revenue, Expenses and Changes in Net Asset.
2006
2005
2004
Cash provided by (used in)
Operating activities
Non-capital fmancing activities
Capital and related financing activities
Investing activities
Net increase (decrease) in cash
Cash - beginning of year
Cash - end of year
$ (60,939,952)
78,646,611
(19,019,449)
2,028,186
715,396
129,123,608
$ 129,839,004
$ (58,827,676)
69,873,723
92,212,123
1,717,650
104,975,820
24,147,788
$ 129,123,608
$
(64,990,449)
61,678,047
(2,784,233)
355,625
(5,741,010)
29,888,798
24,147,788
$
Capital Asset and Debt Administration
Capital Assets
At JtUle 30, 2006, the District had a net $101.1 million in a broad range of capital assets, including land,
buildings, and furniture and equipment. Tbis amOtUlt represents a net increase (including additions, deductions,
and depreciation) of $17.0 million, or 20.4 percent, from last year. We present more detailed information
regarding our capital assets in Note 4 of the financial statements.
Long-Term Debt
At the end of this year, the District bad $104.8 million in debt outstanding versus $105.7 million last year, a
substantial increase, due to the issuance of the $89 million of GO Bonds netted with repayments of bonds. .Other
obligations include lease revenue bonds, children's center loan, compensated absences payable, and bond
. premiums amortizable over the life of the bond. We present more detailed information regarding our long-term
liabilities in Note 8 of the financial statements.
13
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2006
Economic Factors that will Affect the Future
The District is dependent on the State of California for a majority of its revenue. State law and regulation further
specify the allowed uses of state revenue. The most important element of state funding is the General
Apportionment calculation, which accounts for 79% of the District's total General Fund, Unrestricted, operating
revenue. Although the District receives local income from property tax proceeds and student enrollment fees,
these local income sources are included in the state Base Apportionment calculation.
The District will closely monitor state economic forecasts and other information available to the district to
develop sound financial plans for the future.
CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, students, and investors and creditors with a
general overview of the District's fmances and to show the District's accmmtabiIity for the money it receives. If
you have questions about this report or need any additional financial information, contact the Department of
Business Services at Chabot-Las Positas Community College District, 5020 Franklin Drive, Pleasanton,
California 94588, or e-mail atjnahIen@clpccd.cc.ca.us.
14
STATEl\1ENTS OF NET ASSETS
JUNE 30, 2006 AND 2005
2006 2005
ASSETS
Current Assets
Cash and cash equivalents $ 6,186,994 $ 5,380,094
Investments 11,734,735 10,482,828
AccOlmts receivable 15,107,853 11,776,319
Student receivable, net 2,103,886 3,014,032
Deferred charges 1,144,754 1,456,084
Prepaid expenses 22,264 10,149
Stores inventories 887,022 932,783
Other current assets 36,599 312,633
Total Current Assets 37,224,107 33,364,922
Noncnrrent Assets
Restricted cash and cash equivalents 112,357,404 113,685,188
Nondepreciable capital assets 16,483,804 19,183,518
Depreciable capital assets, net of depreciation 84,586,775 64,770,769
Total Noncurrent Assets 213,427,983 197,639,475
TOTAL ASSETS 250,652,090 231,004,397
LIABILITIES
Current Liabilities
Deficit cash 4,490
Accounts payable 10,105,207 10,152,872
Interest payable, unrestricted 1,019,269 1,453,949
Deferred revenue 5,934,889 5,419,601
Amounts held in trust on behalf of others 1,213,400 1,095,130
Bonds payable - current portion 8,330,000 6,665,000
Lease revenue bond payable - current portion 150,000 150,000
Lease obligations - current portion 20,071 23,597
Other long-term liabilities - current portion 1,011,698 172,427
Total Current Liabilities 27,789,024 25,132,576
Noncurrent Liabilities
Compensated absences payable - noncurrent portion 1,516,917 ] ,657,844
Bonds payable - noncurrent portion 90,945,850 93,335,000
Lease revenue bond payable - noncurrent portion 5,145,000. 5,295,000
Lease obligations - noncurrent portion 7,593 26,206
Other long-term liabilities - noncurrent portion 13,678,351 2,908,238
Total Noncurrent Liabilities 111,293,711 103,222,288
TOTAL LIABILITIES 139,082,735 128,354,864
NET ASSETS
Invested in capital assets, net of related debt 79,374,369 73,563,079
Restricted for:
Debt service 12,483,238 13,143,218
Capital projects 1,483,581 2,838,074
U mestricted 18,228,167 13,105,162
TOTAL NET ASSETS $ 111,569,355 $ 102,649,533
The accompanying notes are an integral part of these financial statements.
15
STATEl\iENTS OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
FOR THE YEARS ENDED JUNE 30, 2006 AND 2005
2006 2005
OPERATING REVENUES
Student Tuition and Fees $ 13,279,126 $ 12,697,885
Less: Scholarship discount and allowance (2,983,975) (2,979,041 )
Net tuition and fees 10,295,151 9,718,844
Grants and Contracts, non capital:
Federal 9,372,352 10,423,967
State 9,018,249 8,167,813
Local 3,087,355 5,788,509
Auxiliary Enterprise Sales and Charges 3,900,303 4,114,302
Internal Service Sales and Charges 2,581,824 2,151,520
TOTAL OPERATING REVENUES 38,255,234 40,364,955
OPERATING EXPENSES
Salaries 61,127,956 56,778,967
Employee benefits 19,762,306 18,042,066
Supplies, materials, and other operating expenses and services 27,106,481 28,057,741
Equipment, maintenance, and repairs 193,834 1,971,317
Depreciation 3,659,662 2,522,3] 0
TOTAL OPERATING EXPENSES 111,850,239 107,372,401
OPERATING LOSS (73,595,005) (67,007,446)
NONOPERATING REVENUES (EXPENSES)
State apportionments, non capital 40,253,325 36,632,704
Local property taxes 36,660,457 35,514,690
State taxes and other revenues 2,952,660 1,774,015
Investment income, net 2,706,643 2,392,374
Interest expense on capital related debt (9,503,576) (2,029,423)
Interest income on capital asset-related debt, net 235,752 120,525
Transfer from agency fund 24,139
Transfer to agency fund (3,250) (15,000)
Other nonoperating revenue 1,096,751 418,955
TOTAL NONOPERATING REVENUES (EXPENSES) 74,398,762 74,832,979
INCOME BEFORE OTHER REVENUES AND EXPENSES 803,757 7,825,533
State revenues, capital 7,741,238 11,049,244-
Local revenues, capital 374,827
TOTAL INCOME BEFORE OTHER
OTHER REVENUES AND EXPENSES 8,1I6,065 11,049,244-
INCREASE IN NET ASSETS 8,919,822 18,874,777
NET ASSETS, BEGINNING OF YEAR 102,649,533 83,774,756
NET ASSETS, END OF YEAR $ 111,569,355 $ 102,649,533
The accompanying notes are an integral part of these financial statements.
16
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30,2006 AND 2005
CASH FLOWS FROM OPERATING ACTMTIES
Tuition and fees
Non capital grants and contracts
Payments to vendors for supplies and services
Payments to or on behalf of employees
Payments to students for scholarships and grants
Auxiliary enterprise sales and charges:
Other operating receipts (payments)
Net Cash Flows From Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
State apportionments
Property taxes
State taxes and other apportionments
Other nonoperating
Net Cash Flows From Noncapital Financing Activities
CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES
Purchase of capital assets
Proceeds from capital debt
State revenue, capital projects
Deferred cost on issuance of debt
Principal paid on capital debt
Interest paid on capital debt
Interest received on capital asset-related debt
Net Cash Flows From Capital Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received from investments
Net Cash Flows From Investing Activities
NET INCREASE IN CASH AND CASH EQUIV ALENfS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASHEQUIV ALENTS. END OF YEAR
The accompanying notes are an integral part of these financial statements.
17
2006 2005
$ 13,335,785 $ 8,438,792
25,743,819 26,517,043
(17,274,047) (15,620,379)
(80,621,249) (72,946,086)
(8,754,657) (8,800,965)
6,512,127 3,583,919
118,270
(60,939,952) (58,827,676)
37,571,229 32,648,468
36,660,457 35,514,690
3,266,808 1,774,015
1,148,117 (63,450)
78,646,611 69,873,723
(20,775,954) (16,687,255)
104,001,324 102,810,665
450,211 11,886,351
311,330
(93,288,229) (4,230,873)
(9,938,256) (1,446,240)
220,125 ( 120,525)
(19,019,449) 92,212,123
2,028,186 1,717,650
2,028,186 1,717,650
715,396 104,975,820
129,123,608 24,147,788
$ 129,839,004 $ 129,123,608
STATEMENTS OF CASH FLOWS, Continued
FOR THE YEARS ENDED JUNE 30, 2006 AND 2005
RECONCILIATION OF NET OPERATING LOSS TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating Loss
Adjustments to Reconcile Operating Loss to Net Cash Flows
from Operating Activities:
Depreciation expense
Changes in Assets and Liabilities:
Receivables, net
Inventories
Prepaid items
Accounts payable and accrued liabilities
Deferred revenue
Funds held for others
Total Adjustments
Net Cash Flows From Operating Activities
CASH AND CASH EQUIVALENTS CONSIST OF THE FOLLOWING:
Cash in banks
Cash in county treasury
Total Cash and Cash Equivalents
NON CASH TRANSACTIONS
On behalf payments for benefits
The accompanying notes are an integral part of these financial statements.
18
2006
$ (73,595,005)
3,659,662
5,219,143
45,761
263,919
(97,791)
3,446,089
118,270
12,655,053
$ (60,939,952)
$ 6,186,994
123,652,010
$ 129,839,004
$ 1,336,829
2005
$ (67,007,446)
2,522,310
(1,231,863)
(162,840)
(1,231,593)
6,574,081
1,661,512
48,163
8,179,770
$ (58,827,676)
$ 5,380,094
123,743,514
$ 129,123,608
$ 1,602,783
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POliCIES
Organization
The Chabot-Las Positas Commtmity College District (the District) was established in 1961 as a political
subdivision of the State of California and provides post secondary educational services to residents of Alameda
County and the st.nTounding area. The District operates under a locally elected seven-member Board of Trustees
form of government, which establishes the policies and procedures by which the District operates. The Board
must approve the annual budgets for the General Fund, special revenue funds, and capital project funds, but these
budgets are managed at the department level. Currently, the District operates two campuses/colleges located
within Alameda County. While the District is a political subdivision of the State of California, it is not a
component unit of the State in accordance with the provisions of Governmental Accounting Standards Board
(GASB) Statement No. 39.
Fmancial Reporting Entity
During the year ended Jnne 30, 2004, the District adopted GASB Statement No. 39, Determining Whether Certain
Organizations are Component Units. This statement amends GASB Statement No. 14, The Financial Reporting
Entity, to provide additional guidance to determine whether certain organizations, for which the District is not
financially accountable, should be reported as component units based on the natlrre and significance of their
relationship with the District
The District identified the Chabot-Las Positas Colleges Fonndation (Foundation) and the Chabot - Las Positas
Community College District Financing Corporation (Corporation) as potential component units. The District has
elected not to present the Foundation as a component tmit because the Foundation's assets, liabilities, and
disbursements directly to the District are not considered to be significant to the District. The Corporation is
presented as a component unit as the board is controlled by the board of the District
Under generally accepted accounting principles established by the GASB, the financial reporting entity consist of
the Chabot - Las Positas Community College District, as well as the following component units.
· Chabot - Las Positas Community College District Financing Corporation
The Chabot - Las Positas Community College District Financing Corporation (Corporation) is a legally
separate organization component unit of the District The Corporation was fanned to isSue debt
specifically for the acquisition and construction of capital assets for the District. The Board of Trustees of
the Corporation is the same as the Board of Trustees of the District The fmanciaI activity has been
"blended" or consolidated within the financial statements as the District as if the activity was the
District's. lndividually-prepared financial statements are not prepared for the Chabot - Las Positas
Community CoIIege District Financing Corporation.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
For financial reporting purposes, the District is considered a special-purpose government engaged only in
business-type activities. Accordingly, the District's fmancial statements have been presented using the economic
resources measurement focus and the accrual basis of accounting. Under the accrual basis, revenues are
recognized when earned, and expenses are recorded when an obligation has been incurred. All significant
intra-agency and intra-fund transactions have been eliminated.
19
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is
recorded on the accrual basis when the exchange takes place. Available means that the resources will be collected
within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of
the cmrent fiscal year. For the District, available means expected to be received within 60 days of fiscal year-end.
Nonexchange transactions, in which the District receives value without directly giving equal value in retmn,
include State apportionments, property taxes, certain grants, entitlements, and donations. Revenue from State
apportionments is generally recognized in the fiscal year in which it is apportioned from the State. Revenue from
property taxes is recognized in the fiscal year in which the taxes are received. Revenue from certain grants,
entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been
satisfied. Eligibility requirements include time and pmpose requirements.
The accounting policies of the District conform to accounting principles generally accepted in the United State of
America (US GAAP) as applicable to colleges and universities, as well as those prescribed by the California
Community Colleges Chancellor's Office. The District reports are based on all applicable GASB
pronouncements, as well as applicable FASB pronouncements issued on or before November 30, 1989, unless
those pronouncements conflict or contradict GASB pronouncements. When applicable, certain prior year
amounts bave been reclassified to conform to current year presentation.
The financial statements are presented in accordance with the reporting model as prescribed in GASB Statement
No. 34, Basic Financial Statements and Management's Discussions and Analysis for State and Local
Governments, and GASB Statement No. 35, Basic Financial Statements and Management 's Discussions and
Analysisfor Public Colleges and Universities, as amended by GASB Statements No. 37 and 38. The Busmess
type activities model followed by the District requires the following components of the District's financial
statements:
· Management's Discussion and Analysis
· Basic Financial Statements for the District as a whole including:
o Statement of Net Assets
o Statement of Revenues, Expenses and Changes in Net Assets
o Statement of Cash Flows
· Notes to the Financial Statements
The foUowing is a summary of the more significant policies:
Cash and Cash Equivalents
The District's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of one year or less from the date of acquisition. Cash equivalents also
include cash with county treasury balances for pmposes of the statement of cash flows.
20
NOTES TO FINANCIAL STATE:MENTS
JUNE 30, 2006 AND 2005
Investments
In accordance with GASB Statement No. 31, Accounting and Reportingfor Certain Investments and for
External Investment Pools, investments are stated at fair value. Fair value is estimated based on published
market prices at year-end. Investments for which there are no quoted market prices are not material.
Accounts Receivable
Accounts receivable include amounts due from the Federal, State and/or local governments, or private
sources, in connection with reimbursement of allowable expenditures made pursuant to the District's grants
and contracts. AccOlmts receivable also consist of tuition and fee charges to students and auxiliary enterprise
services provided to students, faculty, and st:af:t: the majority of each residing in the State of California. The
District provides for an allowance for uncoIlecnble aCC01.mts as an estimation of amounts that may not be
received. This allowance is increased by 5 percent of total outstanding student receivables each year. The
allowance was estimated at $375,000 and $0 for the years ended June 30,2006 and 2005, respectively.
Prepaid Expenditures
Prepaid expenditures or expenses represent payments made to vendors for services that will benefit periods
beyond June 30.
Inventory
Inventory consists primarily of bookstore merchandise and cafeteria food and supplies held for resale to the
students and faculty of the colleges. Inventories are stated at cost, utilizing the weighted average method.
The cost is recorded as an expense as the inventory is consumed. .
Capital Assets and Depreciation
Capital assets are long-lived assets of the District as a whole and include land, construction-in-progress,
buildings, leasehold improvements, and equipment. The District maintains an initial unit cost capitalization
threshold of $1,000. Assets are recorded at historical cost, or estimated historical cost, when purchased or
constructed. The District does not possess any infrastructure. Donated capital assets are recorded at
estimated fair market value at the date of donation. Improvements. are capitalized; the costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend an asset's life are not.
Major outlays for capital improvements are capitalized as construction-in-progress as the projects are
constructed.
Depreciation of capital assets is computed and recorded by the straight-line method. Estimated useful lives of
the various classes of depreciable capital assets are as follows: buildings, 25 to 50 years; improvements, 25 to
50 years, equipment, 3 to 8 years.
Accrued Liabilities and Long-term Obligations
AIl payables, accrued liabilities, and long-term obligations are reported in the entity-wide financial
statements.
21
NOTES TO FINANCIAL STATE:MENTS
JUNE 30, 2006 AND 2005
Deferred Issuance Costs, Premiums, and Discounts
In the government-wide financial statements and in the proprietary fund type financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund statement of net assets. Bond premiums and discounts, as well as
issuance costs, are deferred and amortized over the life of the bonds using the straight line method.
Compensated Absences
Accumulated unpaid employee vacation benefits are accrued as a liability as the benefits are earned. The
entire compensated absence liability is reported on the entity-wide financial statements. The amounts have
been recorded in the fund from which the employees, who have accumulated the leave, are paid.
Sick leave is accumulated without limit for each employee based upon negotiated contracts. Leave with pay
is provided when employees are absent for health reasons; however, the employees do not gain a vested right
to accumulated sick leave. Employees are never paid for any sick leave balance at termination of
employment or any other time. Therefore, the value of accumulated sick leave is not recognized as a liability
in the District's financial statements. However, credit for unused sick leave is applicable to all classified
school members who retire after January I, 1999. At retirement, each member will receive .004 year of
service credit for each day of unused sick leave.
Deferred Revenue
Deferred revenue arises when potential revenue does not meet both the "measurable" and "available" criteria
for recognition in the current period or when resources are received by the District prior to the incurrence of
qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the
District has a legal claim to the resources, the liability for deferred revenue is removed from the combined
balance sheet and revenue is recognized. Deferred revenues include (1) amounts received for tuition and fees
prior to the end of the fiscal year that are related to the subsequent fiscal year and (2) amounts received from
Federal and State grants received before the eligibility requirements are met are recorded as deferred revenue.
Net Assets
GASB Statements No. 34 and No. 35 report equity as "Net Assets." Net assets are classified according to
external donor restrictions or availability of assets for satisfaction of District obligations according to the
following net asset categories:
Invested in Capital Assets. Net of Related Debt: Capital Assets, net of accumulated depreciation and
outstanding principal balances of debt attributable to the acquisition, construction, or improvement of
those assets.
Restricted - Nonexpendable: Net assets whose use by the District has been externally restricted in
perpetuity .
Restricted - Expendable: Net assets whose use by the District is subject to externally imposed
constraints that can be fulfilled by actions of the District pursuant to those constraints or by the passage of
time.
22
NOTES TO FINANCIAL STATKMENTS
JUNE 30, 2006 AND 2005
Unrestricted:. Net assets that are not subject to externally imposed cons1raints. Unrestricted net assets
, may be designated for specific purposes by action of the Board of Trustees or may otherwise be limited
by contractual agreements with outside parties.
When both restricted and mrrestricted resources are available for use, it is the District's practice to use
restricted resources first and the unrestricted resources when they are needed.
Operating Revenues and Expenses
Classification of Revenues - The District has classified its revenues as either operating or nonoperating
according to the following criteria:
Operating revenues - Operating revenues include activities that have the characteristics of exchange
transactions, such as, (1) student tuition and fees, net of scholarship discounts and allowances, (2) sales
and services of auxiliary enterprises, net of scholarship discounts and allowances, (3) most Federal, State,
and local grants and contracts, and (4) interest on institutional student loans.
Nonoperating revenues - Nonoperating revenues include activities that have the characteristics of
nonexchange transactions, such as State apportionments, property taxes, invesbnent income, gifts and
contributions, and other revenue sources described in GASB Statement No. 34.
Oassificatiou of Expenses - Nearly all the District's expenses are from exchange transactions and are
classified as either operating or nonoperating according to the following criteria:
Operating expenses - Operating expenses are necessary costs to provide the services of the District and
include employee salaries and benefits, supplies, operating expenses, and student financial aid.
Nonoperating expenses - Nonoperating expenses include interest expense and other expenses not
directly related to the services of the District.
State Apportionments
Certain current year apportionments from the State are based on financial and statistical information of the
previous year. Any corrections due to the recalculation of the apportionment are made in February oithe
subsequent year and are recorded in the District's financial records when received.
Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results may differ from those estimates.
Property Tax
Secured property taxes attach as an enforceable lien on propew as of January 1. The County Assessor is
responsible for assessment of all taxable real property. Taxes are payable in two installments on November 1
and February 1 and become delinquent on December 10 and Apri.110, respectively. Unsecured property taxes
23
l"lU.lJ!..iS IU lfI.NANClAL STATKMENTS
JUNE 30, 2006 AND 2005
are payable in one installment on or before August 31. The County of Alameda bills and collects the taxes on
behalf of the District Local property tax revenues are recorded when received.
Federal Financial Assistance Programs
The District participates in federally funded Pell Grants, SEOG Grants, and Federal Work-Study; as well as
other programs funded by the Federal government. Financial aid to students is either reported as operating
expenses or scholarship allowances, which reduce revenues. The amount reported as operating expense
represents the portion of aid that was provided to the student in the form of cash. Scholarship allowances
represent the portion of aid provided to students in the form of reduced tuition. These programs are audited in
accordance with the Single Audit Act Amendments of 1996, and the U.S. Office of Management and Budget's
revised Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and the related
Compliance Supplement. During the year ended June 30, 2006 and 2005, the District distributed $1,482,215
and $1,404,720 in direct lending of Federal Family Education Loans from the U.S. Department of Education.
These amounts have not been included as revenues or expenses within the accompanying financial statements
as the amounts were passed directly to qualifying students however the amounts are included on the Schedule
of Federal Financial Assistance.
New Accounting Pronouncements
· GASB Statement No. 42: In November 2003, GASB issued Statement No. 42, Accounting and Financial
Reportingfor Impairment of Capital Assets andfor Insurance Recoveries. This statement establishes
accounting and financial reporting standards for impairment of capital assets. The provisions of this
statement are effective for periods beginning after December 2004 and have been implemented by the District
in fiscal year 2005-2006.
· GASB Statement No. 43: In April 2004, GASB issued Statement No. 43, Financial Reportingfor
Postemployment Benefits Other than Pension Plans. The standards in this statement apply for trust funds
included in the fmancial reports of plan sponsors or employers, as well as for the stand-alone financial reports
of OPEB plans or the public employee retirements systems, or other third parties that administer them. The
provisions of this statement are effective for periods beginning after December 15,2005. The District is not a
plan sponsor of an OPEB Plan.
· GASB Statement No. 45: In June 2004, GASB issued Statement No. 45, Accounting and Financial
Reporting by Employers for Postemployment Benefits Other than Pensions. 1bisstatement establishes
standards for the measurement; recognition and display of OPEB expense, expenditures and related liabilities
or assets, note disclosures and., if applicable, required supplementary information in the financial reports of
State and local governmental employers. This statement generally provides for prospective implementation _
that is, that employers set the beginning net OPEB obligation at zero as of the beginning of the initial year.
The District is in the process of determining the impact the implementation of this statement will have on the
government-wide statements of net assets and activities. Ibis statement is effective for periods beginning
after December 15,2006, depending upon the size of the governmental entities' financial activity. The
District will be implementing the requirements of this standard in the 2008-2009 fiscal year.
24
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
. GASB Statement No. 46: In December 2004, GASB issued Statement No. 46, Net Assets Restricted by
Enabling Legislation, an amendment of GASB No. 34. This statement clarifies that a legally enforceable
enabling legislation restriction is one that a party external to a government can compel a government to honor.
Accordingly, it clarifies the determination of restricted net assets within the statement of net assets. The
District has implemented this statement
· GASB Statement No. 47: In June 2005, GASB issued Statement No. 47, Accountingfor Termination
Benefits. This statement establishes accounting standards for termination benefits. The District has
implemented this statement.
Comparative Financial Information
Comparative financial information for the prior year has been presented for additional analysis; certain amounts
presented in the prior year data have been reclassified in order to be consistent with the current year's
presentation.
NOTE 2 - CASH AND INVESTMENTS
Policies and Practices
The District is authorized under California Government Code to make direct investments in local agency bonds,
notes, or warrants within the State; U.S. Treasury instruments; registered State warrants or treasury notes;
securities ofthe U.S. Government; or its agencies; bankers acceptances; commercial paper; certificates of deposit
placed with commercial banks and/or savings and loan companies; repurchase or reverse repurchase agreements;
medium term corporate notes; shares of beneficial interest issued by diversified management companies,
certificates of participation, obligations with first priority security; and collateralized mortgage obligations.
Investment in County Treasury - The District is considered to be an involuntary participant in an external
investment pool as the District is required to deposit all receipts and collections of monies with their County
Treasurer (Education Code Section 41001). The fair value of the District's investment in the pool is reported in
the accounting financial statements at amounts based upon the District's pro-rata share of the fair value provided
by the County Treasurer for the entire portfolio (in relation to the amortized cost of that portfolio). The balance
available for withdrawal is based on the accounting records maintained by the County Treasurer, which is
recorded on the amortized cost basis.
25
l"lUIJ!..~ IU .lf1.NANLtAL STATE~NTS
JUNE 30, 2006 AND 2005
General Authorizations
Limitations as they relate to interest rate risk; credit risk, and concentration of credit risk are indicated in the
schedules below:
Authorized
Investment Type
Local Agency Bonds, Notes, Warrants
Registered State Bonds, Notes, Warrants
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptance
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
R~erneRepurchaseAgreements
Medium-term Corporate Notes
Mutual Funds
Money Market Mutual Funds
Mortgage Pass-Though Securities
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
Joint Powers Authority Pools
Authorized Under Debt Agreements
Maximum
Remaining
Maturity
5 years
5 years
5 years
5 years
180 days
270 days
5 years
1 year
92 days
5 years
NIA
NIA
5 years
N/A
N/A
N/A
. Maximum
Percentage
of Portfolio
None
None
100%
None
40%
25%
30%
None
20% of base
30%
20%
20%
20%
None
None
None
Maxirnmn
Investment
In One Issuer
None
None
None
None
30%
10%
None
None
None
None
10%
10%
None
None
None
None
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements rather than
the general provisions of the California Government Code. These provisions allow for the acquisition of
investment agreements with maturities of up to 30 years.
Summary of Deposits and Investments
Deposits and investments as of June 30, 2006, are classified in the accompanying financial statements as follows:
Cash on hand and in banks
Cash in revolving
Cash awaiting deposit
Investment with fiscal agent
Investments
Total Deposits and Investments
26
$ 5,174,177
73,600
499,088
440,129
124,092,139
$ 130,279,133
NUTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. The District manages its exposure to interest rate risk by purchasing a
combination of shorter term and longer term investments and by timing cash flows from maturities so that a
portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash
flow and liquidity needed for operations.
Weighted Average Maturity
The District monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of
its portfolio. Information about the weighted average maturity of the District's portfolio is presented in the
following schedule:
Total
Fair
Value
$ 440,129
123,992,865
$ 124,432,994
Weighted
Average
Maturity
In Years
N/A
1.00
Investment Type
Notes, mortgages, and contracts
County Pool
Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by the California Government Code, the District's investment
policy, or debt agreements, and the actual rating as of the year-end for each investment type.
Total
Fair
Value
$ 440,129
123,992,865
$ 124,432,994
Minimum
Legal
Rating
None
None
Not Required
To Be
Rated
Investment Type
Notes, mortgages, and contracts
County Pool
$
AAA
$
Rating as of Year End
Aa Unrated
$ $ 440,129
123;992,865
$ $ 124,432,994
$
$
Concentration of Credit Risk
The investment policy of the District contains no limitations on the amount that can be invested in anyone issuer
beyond the stipulated by the California Government code. The District does not have investments in anyone
issuer that represent five percent or more of the total investments.
27
NUTES TO !l'.INANClAL STATEMENTS
JUNE 30, 2006 AND 2005
Custodial Credit Risk - Deposits
This is the risk that in the event of a bank failure, the District's deposits may not be returned to it The District
does not have a policy for custodial credit risk As of June 30, 2006, $5,724,000 of the District's bank balance of
$6,240,000 was exposed to custodial credit risk because it was uninsured and collateralized with securities held
by the pledging financial institution's trust department or agent; but not in the name of the District
NOTE 3 - ACCOUNTS RECEIVABLE
ACCOl.mts receivable for the District consisted primarily of intergovernmental grants, entitlements, interest, and
other local sources. The District has determined $375,000 and $0 of accounts receivable at June 30.2006 and
2005 may be uncollectible and has set up a corresponding allowance for doubtful accounts.
The accounts receivable are as follows:
2006
Federal Government
Categorical aid
State Government
Apportionment
Categorical aid
Lottery
Other State sources
Local Government
Interest
Other local sources
Total
$ 328.867
2,804,196
491,946
478,618
7,665,854
1,425,623
1,912,749
$ 15,107,853
Student receivables
Less allowance for bad debt
Student loan receivables
Student receivables, net
$ 2.324,825
(375,000)
154,061
$ 2.103,886.
28
2005
$ 588,638
3.052,901
283,715
931,335
747,166
6,172,564
$ 11.776,319
$ 3,014,032
$ 3,014,032
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
NOTE 4 - CAPITAL ASSETS
Capital asset activity for the District for the fiscal year ended June 30, 2006, was as follows:
Balance Balance
Beginning End
of Year Additions Deductions of Year
Capital Assets Not Being Depreciated
Land $ 2,087,458 $ $ $ 2,087,458
Construction in progress 17,096,060 11,856,411 14,556,125 14,396,346
Total Capital Assets Not Being Depreciated 19,183,518 11 ,856,411 14,556,125 16,483,804
Capital Assets Being Depreciated
Buildings and improvements 87,194,761 17,644,931 104,839,692
Furniture and equipment 14,863,155 5,830,737 20,693,892
Total Capital Assets Being Depreciated 102,057,916 23,475,668 125,533,584
Total Capital Assets 121,241,434 35,332,079 14,556,125 142,017,388
Less Accumulated Depreciation
Buildings and improvements 24,993,175 2,042,103 27,035;178
Furniture and equipment 12,293,972 1,617,559 13,911,531
Total Accumulated Depreciation 37,287,147 3,659,662 40,946,809
Subtotal Capital Assets Being Depreciated 64,770,769 19,816,006 84,586,775
Net Capital Assets $ 83,954,287 $31,672,417 $14,556,125 $ 101,070,579
Depreciation expense for the year was $3,659,662.
29
1. H-' ~ L~ ~ V ..l" .Ll.,.tU.~L.1AL ".I. A.l.l!ilV.1.l!.l'l I:S
JUNE 30, 2006 AND 2005
Capital asset activity for the District for the fiscal year ended June 30, 2005, was as follows:
Balance Balance
Beginning End
of Year Additions Deductions of Year
Capital Assets Not Being Depreciated
Land $ 2,087,458 $ $ $ 2,087,458
Construction in progress 2,728,267 14,725,376 357,583 17,096,060
Total Capital Assets Not Being Depreciated 4,815,725 14,725,376 357,583 19,183,518
Capital Assets Being Depreciated
Buildings and improvements 85,330,480 1,864,281 87,194,761
Furniture and equipment 14,510,337 486,779 133,961 14,863,155
Total Capital Assets Being Depreciated 99,840,817 2,351,060 133,961 102,057,916
Total Capital Assets 104,656,542 17,076,436 491,544 121,241,434
Less Accumulated Depreciation
Buildings and improvements 23,375,090 1,618,085 24,993,175
Furniture and equipment 11,389,747 904,225 12,293,972
Total Accumulated Depreciation 34,764,837 2,522,310 37,287,147
Net Capital Assets $ 69,891,705 $14,554,126 $ 491,544 $ 83,954,287
Depreciation expense for the year was $2,522,310.
NOTE 5 - INTERFUND TRANSACTIONS
Interfund ReceivableslPayables (Due To/Dne From)
Interfund receivable and payable balances consist of amounts owed between funds as a result of the time lag
between the date that (1) inferfimd goods and services are provided or reimbursable expenditures occur,
(2) transactions recorded in the accounting system and (3) payments between funds occur. These interfund
transactions have been eliminated through consolidation within the entity-wide financial statements.
30
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
Operating Transfers
Operating transfers between District governmental funds are used to (I) move revenues from the fimd that statute
or budget requires to collect them to the fund that statute or budget requires to expend them, (2) move receipts
restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments
become due, and (3) use unrestricted revenues collected in the General Fund to finance various programs
accounted for in other funds in accordance with budgetary authorizations. These operating transfers have been
eliminated through consolidation within the entity-wide financial statements.
NOTE 6 -ACCOUNTS PAYABLE
Accounts payable for the District consisted of the following:
Accrued payroll
Vendor
Federal categorical
Total
2006
$ 1,783,994
8,266,597
54,616
$ 10,105,207
NOTE 7 - DEFERRED REVENUE
Deferred revenue at consisted of the following:
Federal financial assistance
State categorical aid
Enrollment fees
Other local
2006
$ 47,975
970,373
3,400,888
1,515,653
$ 5,934,889
Total
31
2005
$ 1,374,054
8,778,818
$ 10,152,872
2005
$ 218,242
3,776,898
1,424,461
$ 5,419,601
l~U J.E~ TV .r-mANLlAL iSlATEMENTS
JUNE 30, 2006 AND 2005
NOTE 8 - LONG-TERM OBliGATIONS
Long-term Obligations Summary
The changes in the District's long-term obligations during the 2006 fiscal year consisted of the following:
Balance Balance
Beginning End Due in
of Year Additions Deductions of Year One Year
Bonds and Notes Payable
General obligation bonds $ 100,000,000 $ 89,275,850 $ 90,000,000 $ 99,275,850 $ 8,330,000
Unamortized bond premimns 2,810,665 14,725,474 3,056,090 14,480,049 981,698
Subtotal general obligation bonds 102,810,665 104,001,324 93,056,090 113,755,899 9,311,698
Lease revenue bonds 5,445,000 150,000 5,295,000 150,000
Children center loan 270,000 60,000 210,000 30,000
Total Bonds and Notes Payable 108,525,665 104,001,324 93,266,090 119,260,899 9,491,698
Other Liabilities
Compensated absences 1,657,844 140,927 1,516,917
Capital leases 49,803 22,139 27,664 20,071
Total Other Liabilities 1,707,647 163,066 1,544,581 20,071
Total Long-term Debt $ 110,233,312 $104,001,324 $ 93,429,156 $ 120,805,480 $ 9,511,769
The changes in the District's long-term obligations during the 2005 fiscal year consisted of the following:
Balance Balance
Beginning End Due in
of Year Additions Deductions of Year One Year
Bonds and Notes Payable
General obligation bonds $ $100,000,000 $ $ 100,000,000 $ 6,665,000
Unamortized bond premium 2,810,665 2,810,665 112,427
Subtotal general obligation bonds 102,810,665 102,810,665 6,777,427
Lease revenue bonds 5,590,000 145,000 5,445,000 150,000
Certificates of participation 3,355,000 3,355,000
Co-generation loan 670,185 670,185
Children center loan 270,000 270,000 60,000
Total Bonds and Notes Payable 9,885,185 102,810,665 4,170,185 108,525,665 6,987,427
Other Liabilities
Capital leases 110,491 60,688 49,803 23,597
Compensated absences 2,059,827 401,983 1,657,844
Total Other Liabilities 2,170,318 462,671 1,707,647 23,597
Total Long-term Debt $ 12,055,503 $ 102,810,665 $ 4,632,856 $ 110,233,312 $ 7,01l,024
32
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
Description of Debt
The general obligation bond funds were authorized at an election of the registered voters of the District held on
March 2, 2004. The bonds were authorized at an issuance of $498,000,000 principal amount for the purpose of
financing the acquisition, construction and modernization of facilities. The first series of the bonds were issued in
2004 and sold in the amoWlt of $100,000,000. In 2006, $90}000,000 of the Series A bonds were refimded by
issuing a refunding bond in the amoWlt of $89,275,850. The refunding bond generated a premium of $14,725,474
which resulted in $14,696,664 of additional cash received for bond projects. At June 30, 2006, $99,275,850 was
outstanding. Interest rates on the bonds are 3.500 to 5.000 percent. Payments on the general obligation bonds are
paid by the Bond Interest and Bond Redemption Fund.
The lease revenue bonds were issued in July 2002 in the amount of $5,735,000 for the purchase of a building for
the District offices. At June 30, 2006, $5,295,000 was outstanding. The bonds mature through August 2027 with
interest rates ranging from 4.5% to 6.0%. Payments on the lease revenue bonds are paid by the Capital Outlay
Projects Fund.
The children's center loans were issued in 2003 in the amount of $300,000 interest free to finance the pm-chase
and installation of relocatab1e child-care facilities on the Chabot College campus. At June 30, 2006, $210,000
was outstanding. The loans mature through December 2012. Payments of the loans are paid by Child
Development Fund.
The District has utilized capital leases purchase agreements to purchase primarily equipment. The current balance
on lease purchase agreements is $27,664 and will be paid through 2008.
Debt Maturity
General Obligation Bonds
Bonds Bonds
Issue Maturity Interest Original Outstanding Outstanding
Date Date Rate Issue July 1,2005 Issued Redeemed June 30, 2006
2004 2011 3.500-5.000% $100,000,000 $100,000,000 $ $ 90,000,000 $ 10,000,000
2006 2021 3.500-5.000% $ 89,275,849 89,275,850 89,275,850
$100,000,000 $ 89,275,850 $ 90,000,000 $ 99,275,850
33
l''1Ul~~ TU .lIl.NANLlAL iSlAlL~.I.Yl:S
JUNE 30, 2006 AND 2005
The bonds mature through 2021 as follows:
Fiscal Year
2007
2008
2009
2010
2011
2012-2016
2017-2021
2022
Total
Interest accreted to date
Total including accreted interest
Lease Revenue Bonds
Year Ending
June 30,
2007
2008
2009
2010
2011
2012-2016
2017-2021
2022-2026
2027-2028
Total
34
Principal
$ 8,330,000
6,125,000
6,340,000
6,565,000
6,820,000
21,031,599
34,874,251
9,190,000
$ 99,275,850
Interest to
Maturity
$ 2,982,686
3,413,163
3,194,650
2,953,425
2,683,350
26,964,317
12,545,312
227,500
54,964,403
460,342
$ 55,424,745
Total
$ 11,312,686
9,538,163
9,534,650
9,518,425
9,503,350
47,995,916
47,419,563
9,417,500
$ 154,240,253
460,342
$ 154,700,595
Principal Interest Total
$ 150,000 $ 238,903 $ 388,903
155,000 235,047 390,047
160,000 230,515 390,515
165,000 225,188 390,188
170,000 219,325 389,325
965,000 980,825 1,945,825
1,230,000 720,837 1,950,837
1,560,000 384,100 1,944,100
740,000 37,500 777,500
$ 5,295,000 $ 3,272,240 $ 8,567,240
NUTIi:S TU }'lNANClAL STATEMENTS
.JUNE 30, 2006 AND 2005
Chlldren's Center Loan
Fiscal Year
2007
2008
2009
2010
2011
2012-2016
Total
Principal
$ 30,000
30,000
30,000
30,000
30,000
60,000
$ 210,000
Capital Leases
The District has entered into various capital lease arrangements and has recorded capital assets with
corresponding accumulated depreciation. As of June 30, 2006, the District's liability on lease agreements with
option to purchase is sunnnarized below: .
Year Ending
June 30,
2007
2008
Total
Less: Amount Representing Interest
Present Value of Minimum Lease Payments
Lease
Payment
$ 16,178
12,943
29,121
1,457
$ 27,664
Defeasance of Debt Obligations
On March 29, 2006, General Obligation Bonds in the amount of $89,275,849 were issued at a premium of
$14,725,494, with interest rates ranging .from 3.5 percent to 5.0 percent The General Obligation Bonds were
issued to defease and redeem $90,000,000 of2004 Series A bonds. As a result of the advancerefunding, the
District reduced its total debt service requirements by approximately $12,000,000 and received an additional
premium of $14,000,000. The advance refunding resulted in a small economic gain (difference between the
present value of the debt service payments on the old and new debt). .
. The District has defeased the bond issues by creating a separate irrevocable trust fund. New debt has been issued
and the proceeds have been used to purchase U. S. government securities and placed in the trust fund. The
investments and fixed earnings from the investments are sufficient to fully service the defeased debt until the debt
is called or matures. For financial reporting pmposes, the debt has been considered defeased and therefore,
removed as a liability from the District's Long-Term Obligations. As ofJune 30, 2006, $88,099,655 was placed
in an irrevocable trust fund to defease debt outstanding but removed from the Long-Term Obligations, of
$90,000,000_
35
l~UTES TU .lilNANClAL STATEMENTS
JUNE 30, 2006 AND 2005
NOTE 9 - POSTEMPLOYMENT BENEFITS
The District provides medical, dental, and vision insurance coverage, as prescnbed in the various employee union
contracts, to retirees meeting plan eligibility requirements. Eligible employees retiring from the District may
become eligible for these benefits when the requirements are met. The eligibility requirement for employees
participating in Public Employees' Retirement System (PERS) is a minimum age of 55 and a minimum ten years
of continuous service with the District. Additional age and service criteria may be required. The eligibility
requirement for employees participating in State Teachers' Retirement System (STRS) is a minimum age of 60
with five years of service, or age 50 with 30 years of service. In addition, the District also has minimum
continuous service requirements for retirement that range from three years to ten years and varies by employee
class. The District recognizes expenditures for these post-employment health benefits on a pay as you go basis.
The District offers subsidized health insurance benefits to all employees who retire from the District and meet the
age and serviced requirement for eligibility. Group medical coverage is provided for academic retirees hired on
or after April 1, 1986 and classified retirees hired on or after July 1, 1984. Such benefits are required through the
District's union contracts. The amount of the District's contribution per employee towards such annual premiums
is determined according to the collective bargaining agreements. The District recognizes the costs of providing
those benefits and related costs when paid. Active plan participants at June 30, 2006 totaled 306. Payments for
retired employees totaled $2,788,201 for the year ended June 30, 2006 and were recorded as expenses.
The District partially funds the Accumulated Postretirement Benefit Obligation ("APBO"), which is defined as
the present value of the projected benefits that have already been earned. Based on an actuarial study performed
in 2005 (the most recent available), the APBO was estimated to be approximately $81.4 million. Funds set aside
for ftmding purposes were $2,663,372 at June 30, 2006.
NOTE 10 - RISK MANAGEMENT
Property and Liability
The District is exposed to various risks ofIoss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. During fiscal year ending June 30, 2006, the District
contracted with the Protected Insurance Program for Schools JP A (pIPS) for workers' compensation and
Statewide Association of Community Colleges (SW ACe) for property and liabilities insurance coverage. Settled
claims have not exceeded this commercial coverage in any of the past three years. There has not been a
significant reduction in coverage from the prior year.
36
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
Workers' Compensation
For fiscal year 2005-2006, the District participated in the Protected Insurance Program for Schools JPA (pIPS), an
insurance purchasing pool. The District is self insured for the first $1,000,000 of each workers' compensation
claim. The intent of the JP A is to achieve the benefit of a reduced premium for the District by virtue of its
grouping and representation with other participants in the JP A. The workers' compensation experience of the
participating districts is calculated as one experience, and a common premium rate is applied to all districts in the
JP A. Each participant pays its workers' compensation premium based on its individual rate. Total savings are
then calculated and each participant's individual performance is compared to the overall saving. A participant will
then either receive money from or be required to contribute to the "equity-pooling fund." This "equity pooling"
arrangement insures that each participant shares equally in the overall performance of the JP A. Participation in
the JPA is limited to K-12 and community college districts that can meet the JP A's selection criteria.
NOTE 11 - EMPLOYEE RETIREMENT SYSTEMS
Qualified employees are covered under multiple-employer contributory retirement plans maintained by agencies
of the State of California. Certificated employees are members of the State Teachers' Retirement System (STRS)
and classified employees are members of the California Public Employees'Retirement System (CalPERS).
STRS
Plan Description
All certificated employees and those employees meeting minimum standards adopted by the Board of Governors
of the California Community Colleges and employed 50 percent or more in a full-time equivalent position,
participate in the Defined Benefit Plan (DB Plan). Part-time educators hired under a contract ofIess than
50 percent or on an hourly or daily basis without contract may elect membership in the Cash Balance Benefit
Program (CB Benefit Program). Since January 1, 1999, both of these plans have been part of the State Teachers'
Retirement Plan (STRS), a cost-sharing, multiple-employer contributory public employee retirement system. The
State Teachers' Retirement Law (part 13 of the California Education Code, Section 22000 et seq.) established
benefit provisions for STRS. Copies of the STRS annual financial report may be obtained from the STRS
Executive Office, 7667 Folsom Boulevard, Sacramento, California 95851.
37
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
The STRS, a defined benefit pension plan., provides retirement; disability, and death benefits, and depending on
which component of the STRS the employee is in, post-retirement cost-of-living adjustments may also be offered.
Employees in the DB Plan attaining the age of 60 with five years of credited California service (service) are
eligIble for "normal" retirement and are entitled to a monthly benefit of two percent of their final compensation
for each year of service. Final compensation is generally defined as the average salary earnable for the highest
three consecutive years of service. The plan permits early retirement options at age 55 or as early as age 50 with
at least 30 years of service. While early retirement can reduce the two percent age factor used at age 60, service
of 30 or more years will increase the percentage age factor to be applied. Disability benefits are generally the
maximum of 50 percent of final compensation for most applicants. EligIble dependent children can increase this
benefit up to a maximum of 90 percent of final compensation. After five years of credited service, members
become 100 percent vested in retirement benefits earned to date. If a member's employment is terminated, the
accumulated member contributions are refundable. The features of the CB Benefit Program include immediate
vesting, variable contribution rates that can be bargained, guaranteed interest rates, and flexible retirement
options. Participation in the CB Benefit Program is optional; however, if the employee selects the CB Benefit
Program and their basis of employment changes to half time or more, the member will automatically become a
member of the DB Plan.
Funding Policy
Active members of the DB Plan are required to contribute eight percent of their salary while the District is
required to contribute an actuarially determined rate. The actuarial methods and assumptions used for
determining the rate are those adopted by the STRS Teachers' Retirement Board. The required employer
contnbution rate for fiscal year 2005-2006 was 8.25 percent of annual payroll. The contribution requirements of
the plan members are established by State statute. The CB Benefit Program is an alternative STRS contnbution
plan for instructors. Instructors who choose not to sign up for the DB Plan or FICA may participate in the CB
Benefit Program. The District contribution rate for the CB Benefit Program is always a minimum of four percent
with the sum of the District and employee contribution always being equal or greater than eight percent.
Annual Pension Cost
The District's total contributions to STRS for the fiscal years ended June 30, 2006, 2005, and 2004, were
$2,447,924, $2,209,252, and $2,128,103, respectively, and equal 100 percent of the required contributions for
each year.
CalPERS
Plan Description
All full-time classified employees participate in the CaIPERS, an agent multiple-employer contributory public
employee retirement system that act as a common investment and administrative agent for participating public
entities within the State of California. The Chabot-Las Positas Community College District is part of a "cost-
sharing" pool with CalPERS. Employees are eligible for retirement as early as age 50 with five years of service.
At age 55, the employee is entitled to a monthly benefit of2.0 percent offinal compensation for each year of
service credit Retirement compensation is reduced if the plan is coordinated with Social Security. Retirement
after age 55 will increase the percentage rate to a maximum of2.5 percent at age 63 with an increased rate. The
plan also provides death and disability benefits. Retirement benefits fully vest after five years of credited service.
Upon separation from the Fund, members' accumulated contnbutions are refundable with interest credited through
the date of separation.
38
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
The Public Employees' Retirement Law (part 3 of the California Government Code, Section 20000 et seq.)
establishes benefit provisions for CalPERS. CalPERS issues a separate comprehensive annual financial report
that includes financial statements and required supplementary information. Copies of the CalPERS annual
financial report may be obtained from the CalPERS Executive Office, 400 P Street; Sacramento, California
95814.
Funding Policy
Active plan members are required to contnbute seven percent of their salary (seven percent of monthly salary
over $133.33 if the member participates in Social Security), and the District is required to contribute an
actuarially determined rate. The actuarial methods and assumptions used for determining the rate are those
adopted by the CalPERS Board of Administration. The District's contribution rate to CaIPERS for fiscal year
2005-2006 was 9.952 percent of annual payroll.
Annual Pension Cost
The District's contn1mtions to CalPERS for fiscal years ending June 30, 2006, 2005, and 2004, were $1,793,096,
$1,496,120, and $1,799,316, respectively, and equaled 100 percent of the required contnbutions for each year.
On Behalf Payments
The State of California makes contnbutions to STRS and CalPERS on behalf of the District. These payments
consist of State General Food contributions to STRS which amoooted to $1,336,829 (4.517 percent) of salaries
subject to STRS. A contribution to CalPERS was not required for the year ended June 30, 2006. These amounts
have been reflected in the basic financial statements as a component of nonoperating revenue and employee
benefit expense.
Deferred Compensation
The District offers its employees a CalPERS administered 457 Deferred Compensation Program (the Program).
The Program, available to all permanent employees, permits them to defer a portion of pre-tax salary into
investment of an individual's own choosing until future years. The deferred compensation is not available to the
employees or their beneficiaries until termination, retirement, death, or an unforeseeable emergency. The
CalPERS Board controls the investment and administrative functions of the CalPERS 457 Deferred
Compensation Program. The Board for the exclusive benefit ofparticipating employees holds the assets in trust
for added security.
39
l~UTEIS TU ....lNANl.:!AL STATEMENTS
JUNE 30, 2006 AND 2005
NOTE 12 - COMMITMENTS AND CONTINGENCIES
Grants
The District receives financial assistance from Federal and State agencies in the form of grants. The disbursement
of fimds received lIDder these programs generally requires compliance with terms and conditions specified in the
grant agreements and are subject to audit by the grantor agencies. Any disallowed claims resulting from such
audits could become a liability of the General Fund or other applicable fimds. However, in the opinion of
management, any such disallowed claims will not have a material adverse effect on the overall financial position
of the District at June 30,2006.
Litigation
The District is involved in various litigation arising from the normal course of business. In the opinion of
management and legal cOlIDSel, the disposition of all litigation pending is not expected to have a material adverse
effect on the overall financial position of the District at June 30, 2006.
Construction Commitments
As ofJlme 30, 2006, the District had the following commitments with respect to the unfinished capital projects:
CAPITAL PROJECT
Program Level Services
4000 Student Counseling - Chabot College
Building 700 Social SciencelLanguage Arts-Chabot College
PE Complex/Athletic Fields - Chabot College
Classrooms 300, 500, 800, 900 - Chabot College
Other Buildings and Site Preparation - Chabot College
MD Building - Las Positas College
SSC & Administrative Building - Las Positas College
College Center for Arts - Las Positas College
Child Development Center - Las Positas College
PE Phase IT - Las Positas College
Other Buildings and Site Preparation - Chabot College
Remaining
Construction
Commitment
$ 2,642,149
2,337,641
1,074,577
3,099,362
1,543,610
1,826,596
7,712,438
3,401,000
2,420,175
709,649
612,150
422,940
$ 27,802,287
Expected
Date of
Completion
Jlm-07
Dec-09
Jun-08
Dec-09iJun-09
Jun-07
Dec-07
Jun-lO
Jun-09
Dec-08
Jun-07
Jun-07
The projects are funded through a combination of general obligation bonds and capital project apportionments
from the State Chancellor's Office.
40
NOTES TO FINANCIAL STATRMENTS
JUNE 30, 2006 AND 2005
NOTE 13 - PAR17CIPA170N IN PUBLIC ENTITY RISK POOLS AND JOINT POWERS AUTHORITIES
The District is a member of the Protected Insurance Program for Schools JP A (pIPS). The District pays annual
premiums for its workers' compensation and dental insurance coverage. The relationship between the District and
the JPA is such that it is not a component unit of the District for financial reporting purposes.
The JP As have budgeting and financial reporting requirements independent of member units and their financial
statements are not presented in these financial statements; however, transactions between the JP As and the
District are included in these statements. Audited [mancial statements are available from the respective entities.
The District's share of year-end assets, liabilities, or fund equity has not been calculated.
Dur:iD.g the year ended June 30, 2006, the District made payments of $951 ,678 to PIPS for its workers'
compensation coverage and $455,789 to Statewide Association of Community Colleges for property and liability
msurance.
41
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SUPPLEMENTARY INFORMATION
42
DISTIDCTORGAmZATION
.JUNE 30, 2006
The Chabot-Las Positas Community College District was established on July 1, 1961, and is comprised ofan area
of approximately 588 square miles located in Alameda County. There were no changes in the boundaries of the
District dming the current year.
BOARD OF TRUSTEES
MEMBER OFFICE TERM EXPIRES
Ms. Isobel Dvorsky President 2006
Dr. Amulfo Cedillo Secretary 2008
Mr. Donald Gelles Trustee 2006
Dr. Hal Gin Trustee 2006
Dr. Alison Lewis Trustee 2008
Dr. Barbara Mertes Trustee 2008
Mr. Carlo Vecchiarelli Trustee 2008
ADMINISTRATION
Dr. SusanA. Cota
Mr. Lorenzo Legaspi
Dr. Joel Kinnamon
Chancellor
Vice Chancellor, Business Services
Vice Chancellor, Educational Services
43
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2006
Pass-Through
Federal Entity
Federal GrantorlPass- Through CFDA IdentifYing Federal
Grantor/Program or Cluster Title Number Number Expenditures
u.s. DEPARTMENT OF AGRICULTURE
Pass Through Programs From:
California State Department of Education
Child and Adult Care Food Program 10.558 OI-2962-IA $ 98,3 51
The National Youth Sports Program Fund - Summer Food
Service Program for Children 10.559 01 -2962-1A 19,915
Total U.S. Department of Agriculture 118,266
u.s. DEPARTMENT OF LABOR
Pass Through Programs From:
County of Alameda
Workforce Investment Board 17.259 C95-0187 101,563
Workforce Inves1lnent Act (WIA Title 1) 17262 C95-0187 486,766
Total U.S. Department of Labor 588,329
National Science Foundation Mathematical and Physical Sciences 47.049 [2] 2,588
Total National Science Foundation 2,588
U.S. DEPARTMENT OF EDUCATION
Student Financial Aid Cluster [I)
Federal Supplemental Educational Opportunity Grant Program (FSEOG) 84.007 [2] 231,473
Federal Family Education Loans (FFEL) 84.032 [2] 1,482,215
Federal College Work Study Program (FWS) 84.033 [2] 155,750
Federal Pell Grant Program (PELL) . 84.063 [2] 6,851,899
Total Student Financial Aid Cluster 8,721,337
Higher Education - Institutional Aid 84.031 [2] 63,590
TRlO - Student Support Services 84.042A [2] 162,699
Subtotal Direct Programs 8,947,626
Pass Through Programs From:
California Community Colleges Chancellor's Office
Vocational Education - Basic Grants to States[l] 84.048 OI-COI-007 448,264
Alameda County PIC Job Training Partnership Agreement
Tech-Prep Education 84.243 C95-0 187 20
Tech Prep - Eden Regional Occupational Program 82.243 C95-0187 3,324
Subtotal Pass Tbrough Programs 451,608
Total U.S. Department of Education 9,399,234
U.S. DEPARTMENT OF HEALTII AND HUMAN SERVICES
Pass Through Programs From:
California Community Colleges Chancellor's Office
Temporary Assistance for Needy Families (T ANF) 93.558 [2] 58,486
The National Youth Sports Program Fund-
Community Services Block Grant - Discretionary Awards 93.570 [2] 54,794 ,;
California Department of Education
Parent Infantffoddler Caregivers (pITC) 93.575 [2] 154,050
Child, Family & Community Services - Head Start 93.600 [2] 714,742
Child, Family & Community Services - Community Action to
Reach Out to Infants (CARl) Program 93.658 C95-0187 22,349
Total U.S. Department of Health and Human Services 1,004,421
Total Expenditures of Federal Awards $ 11, 112,838
[1] Tested as a Major Program.
[2] Pass-Through Entity Identifying Number Not Available or Not Applicable.
See accompanying note to supplementary information.
44
SCHEDULE OF EXPENDITURES OF STATE AWARDS
FOR THE YEAR ENDED JUNE 30, 2006
Program Revenues Total
Cash Accounts Deferred Total Program
Program Received Receivable Income Revenue Expenditures
GENERAL FUND
Lottery (Prop 20) $ 369,413 $ 335,077 $ 335,077 $ 369,413 $ 325,409
EOPS 911,857 1,728 910,129 910,129
DSPS 1,198,310 1,198,310 1,198,310
TANF, State Share 27,378 17,504 630 44,252 44,252
CaIWorks 297,145 51,045 246,100 246,100
TTIP 381,389 187,913 193,476 193,476
CARE 132,359 132,359 132,359
BF AP Financial Aid Admin 556,604 556,604 556,604
Matriculation 802,107 802,107 802,107
Matriculation, Non Credit 8,295 8,295 8,295
Faculty & Staff Development 600 600
Faculty & Staff Diversity 20,375 20,375 20,375
Instructional Equipment 289,465 130,420 159,045 171,655
Instructional Equipment -Block Grant 773,423 252,218 521,205 521,205
F oster Care, CC 71,144 50,648 12l,792 109,784
Child Development Training Consort, CC 18,274 1,886 16,388 16,388
Child Development Training Consort, LPC 12,845 165 12,680 12,680
F oster Care, LPC 68,629 31,517 100,146 100,146
CARl Pre-Training, CC 5,215 5,215 5,215
TRDP, Americorps 04-05 (1,594) 14,129 12,535 12,535
TRDP,AJnericorps05-06 13 ,220 13,220 13,220
West Ed Personnel Prep Grant 6,558 2,879 3,679 3,679
West Ed Early Intervention Grant, LPC 10,000 3,968 6,032 6,032
CAN Grant (725) (725) 1,357
Workability III 67,616 5,880 73,496 75,533
Bay Project 6,000 21,633 1,844 25,789 25,789
Economic Development Grant, CC 9,075 9,075
Economic Development Grant, IDRC (35,83 I) (35,831 )
CACFP Food Program 5,235 5,235 5,235
State PreschoollPart Day 283,030 283,030 301,521
State Preschool/Wrap Around 326,229 326,229 302,543
Tri Cities Children's Center Grant 197,059 197,059 401,806
CDE Facility Repair, 04-05 22,280 22,280 10,560
CDE Pre Kindegaaien Resource Grant 2,338 2,338 2,338
State Preschool Material Grant 2,178 2,178 512
State CDE Resource Grant (67) (67)
Total State Programs $6,841,870 $ 491,946 $ 970,373 6,363,443 $ 6,537,149
See accompanying note to supplementary information.
45
SCHEDULE OF WORKLOAD MEASURES FOR STATE
GENERAL APPORTIONMENT
FOR THE YEAR ENDED JUNE 30, 2006
Reported
Data
Audit
Adjustments
Audited
Data
CATEGORIES
A. Credit Full-Time Equivalent Student (FTES)
1. Summer
2. Weekly census
3. Daily census
4. Actual hours of attendance
5. Independent study/work experience
Subtotal
1,743 1,743
11,637 11,637
1,154 1,154
596 596
726 726
15,856 15,856
35 35
646 646
681 681
16,537 16,537
B. Noncredit FTES
1. Summer
2. Actual hours of attendance
Subtotal
Total FTES
C. Basic Skills Courses
1. Credit
2. Noncredit
1,328
1,328
Total Basic Skills FTES
D. FTES Generated in Leased Space
663
E. Gross Square Foot~e
1. Existing facilities
2. New facilities
Total Gross Square Footage
844,656
64,737
909,393
See accompanying note to supplementary information.
46
SCHEDULE OF ANNUAL APPRENTICESHIP HOURS OF INSTRUCTION
FOR THE YEAR ENDED JUNE 30, 2006
Reported
Data
Audit
Adjustments
Audited
Data
July 1 - December 31, 2005
January 1 - April 15, 2006
April 16 - June 30, 2006
Total
20,459
. 2,043
18,787
41,289
20,459
2,043
18,787
41,289
See accompanying note to supplementary information.
47
RECONCILIATION OF ANNUAL FINANCIAL AND BUDGET REPORT
WITH FUND FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Summarized below are the fund balance reconciliations between the Annual Financial and Budget Report
(CCFS-311) and the fimd financial statements.
Child Capital Bond Bookstore Student
General Development Projects Construction Enterprise Financial Aid
FUND BALANCE
Balance, June 30, 2006, (CCFS-311) $ 12,904,873 $ 67,75& $ 4,632,582 $82,069,614 $ 3,422,013 $ 472,454
Decrease in:
AccOImts receivable 17,124 374,830 14,312,126
Increase in:
Accounts payable (175,396) (65,408) (I 7,717)
Balance, June 30, 2006,
Fund Financial Statement $12,729,477 $ 84,882 $ 5,007,412 $96,381,740 $ 3,356,605 $ 454,737
See accompanying note to supplementary information.
48
RECONCILIATION OF GOVERNMENTAL FUND BALANCE SHEETS TO THE
STATEMENT OF NET ASSETS
JUNE 30, 2006
Amounts Reported for Governmental Activities in the Statement
of Net Assets are Different Because:
Total Fund Balance:
General Fund
Special Revenue Funds
Capital Project Funds
Debt Service Funds
Enterprise Funds
Internal Service Funds
Fiduciary Funds
Total Fund Balance - All District Funds
Capital assets used in governmental activities are not finan~ial resources and,
therefore, are not reported as assets in governmental fimds.
The cost of capital assets is
Accumulated depreciation is
Less :fixed assets already recorded in the enterprise funds
In governmental funds, unmatured interest on long-term debt is recognized in
the period when it is due. On the government-wide statements, unmatured
interest on long-term debt is recognized when it is incurred.
Expenditures relating to issuance of debt were recognized on the modified
accrual basis, but are recorded as deferred charges on the accrual basis and
amortized over the life of the bonds.
Long-term liabilities at year end consist of:
Bonds payable
Unamortized premium on general obligation bonds
Capital leases payable
Lease revenue bonds
Compensated absences
Children's center loan
Total Net Assets
See accompanying note to supplementary information.
49
$12,729,477
3,630,329
97,865,321
12,483,238
3,356,605
2,663,372
454,737
142,017,388
(40,946,809)
(2,004,308)
99,275,850
14,480,049
27,664 .
5,295,000
1,516,917
210,000
$ 133,183,079
99,066,271
(1,019,269)
1,144,754
(120,805,480)
$ 111,569,355
NOTE TO SUPPLEMENTARY INFORMATION
JUNE 30, 2006
NOTE I-PURPOSE OFSCHEDULES
Schedule of Expenditures of Federal Awards
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the District
and is presented on the modified accrual basis of accounting. The information in this schedule is presented in
accordance with the requirements of the United States Office of Management and Budget Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Schedule of Expenditures of State Awards
The accompanying schedule of expenditures of State awards includes the State grant activity of the District and is
presented on the modified accrual basis of accounting. Therefore, some amounts presented in this schedule may
differ from amounts presented in, or used in the preparation of, the financial statements.
Schedule of Workload Measures for State General Apportionment and Schedule of Annual Apprenticeship
lIoursofln~ction
Full-Time Equivalent Students (FfES) is a measurement of the number of pupils attending classes of the District.
The purpose of attendance accounting from a fiscal standpoint is to provide the basis on which apportionments of
State funds are made to community college districts. These schedules provide information regarding the
attendance of students throughout the District.
Reconciliation of Annual Financial and Budget Report with Fund Financial Statements
This schedule provides the infonnation necessary to reconcile the ftmd balance of all funds reported on the Form
CCFS-311 to the ftmd financial statements.
Reconciliation of the Governmental Fund Balance Sheets to the Statement of Net Assets
This schedule provides a reconciliation of the adjustments necessary to bring the District's fund fmancial
statements, prepared on a modified accrual basis, to the accrual basis required under GASB Statement No. 35.
50
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INDEPENDENT AUDITORS' REpORTS
51
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FlNANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE 'WITH GOVERNMENT AUDITING STANDARDS
Board of Trustees
Chabot-Las Positas Community College District
Pleasanton, California
We have audited the basic financial statements of Chabot-Las Positas Connnunity College District (the District)
as of and for the years ended June 30, 2006 and 2005, and have issued our report thereon dated April 27, 2007.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issUed by the
Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Chabot-Las Positas Community College District's internal
control over financial reporting in order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and not to provide an opinion on the internal control over financial reporting.
Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the
internal control that might be material weamesses. A material wealmess is a reportable condition in which the
design or operation of one or more of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a timely period by employees in the normal course
of perfonning their assigned functions. We noted no matters involving the internal control over financial
reporting and its operation that we consider to be material wealmesses. However, we noted other matters
involving the internal control over financial reporting that we have reported to the management of Chabot Las
Positas Community College District in a separate letter dated April 27, 2006.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Chabot-Las Positas Community College District's basic
financial statements are free of material misstatement, we performed tests of its compliance with certain
provisions ofIaws, regulations, contracts, and grant agreements, noncompliance with which could have a direct
and material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
52
Community Colleges Chancellor's Office, and the District's .Federal and State awardmg agencIes and pass-through
entities and is not intended to be and should not be used by anyone other than these specified parties.
V~K ~;DQ
Pleasanton, California
April 27, 2007
l!-, c.. 0 ~ 'i-P
\
53
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH O:MB cm.CULAR A-133
Board of Trustees
Chabot-Las Positas Community College District
Pleasanton, California
Compliance
We have audited the compliance of Chabot-Las Positas Community College District (the District) with the types
of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-I33
Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30,
2006. The District's major Federal programs are identified in the Summary of Auditor's Results section of the
accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements ofIaws,
regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of the
District's management. Our responsibility is to express an opinion on the District's compliance based on our
audit
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America, the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States of America, and OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major Federal
program occlnTed. An audit includes examining, on a test basis, evidence. about the District's compliance willi
those requirements and performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal
determination on the District's compliance with those requirements.
In our opinion, Chabot-Las Positas Community College District complied, in all material respects, with the
requirements referred to above that are applicable to each of its major Federal programs for the year ended
June 30, 2006.
54
The management of Chabot-Las Positas Community College District is responsible for establishing and
maintaining effective internal control over compliance with requirements oflaws, regulations, contracts, and
grants applicable to Federal programs. In planning and performing our audit, we considered Chabot-Las Positas
Community College District's internal control over compliance with requirements that could have a direct and
material effect on a major Federal program in order to determine our auditing procedmes for the purpose of
expressing om opinion on compliance and to test and report on internal control over compliance in accordance
with OMB Circular A-133.
Om consideration of the internal control over compliance would not necessarily disclose all matters in the internal
control that might be material weaImesses. A material weaImess is a condition in which the design or operation of
one or more of the internal control components does not reduce to a relatively low level the risk that
noncompliance with applicable requirements oflaws, regulations, contracts, and grants that would be material in
relation to a maj or Federal program being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned fimctions. We noted no matters involving the
internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of the Board of Trustees, District Management, the California
Community Colleges Chancellor's Office, and the District's Federal and" State awarding agencies and pass-through
entities and is not intended to be and should not be used by anyone other than these specified parties.
Y~K.)-r~ln~ LCD~-;e.P
Pleasanton, California "J I
April 27, 2007
55
INDEPENDENT AUDITORS' REPORT ON STATE COMPLIANCE
Board of Trustees
Chabot-Las Positas Community College District
Pleasanton, California
We have audited the basic financial statements of the Chabot-Las Positas Community College District (the
District) for the years ended June 30, 2006 and 2005, and have issued om report thereon dated April 27, 2007.
Our audit was made in accordance with auditing standards generally accepted in the United States of America and
the standards for financial and compliance audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States of America and, accordingly, included such tests of the accounting
records and such other auditing procedmes as we considered necessary in the circumstances.
In connection with the audit referred to above, we selected and tested transactions and records to determine the
District's compliance with the following State laws and regulations in accordance with Section 400 of the
Chancellor's Office's California Community Colleges Contracted Audit Manual (CDAM).
General Directive
. :MIS Implementation - Required Data Elements
Administration
. Open Enrollment
· Minimum Conditions - Standards of Scholarship
. Student Fee - Instructional Materials and Health Fees
. Apportionment of Instructional Service Agreements/Contracts
. Residency Determination for Credit Comses
· Concurrent Enrollment ofK-12 Students in Community College Credit Comses
· Enrollment Fee
. Students Actively Enrolled
· Salaries of Classroom Instructors (50% Law)
. Use of Matriculation Funds
· CalWORKS - Use of State and Federal T ANF Funding
· Allocation of Costs (DSPS and EOPS)
. Non Credit Courses
56
an opinion on the District's compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute of
Certified Public Accountants and, accordingly, included examining, on a test basis, evidence about the District's
compliance with those requirements and performing such other procedmes as we considered necessary in the
circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination
does not provide a legal determination on the District's compliance with specified requirements.
In our opinion, except as described in the Schedule of State Award Findings and Questioned Costs, the Chabot-
Las Positas Conmnmity College District complied, in all material respects, with the aforementioned requirements
for the year ended June 30, 2006.
This report is intended solely for the infonnation of the Board of Trustees, District Management; the California
Community Colleges Chancellor's Office, the California Department of Finance, and the California Department of
Education, and is not intended to be and should not be used by anyone other than these specified parties.
Vo..v-Wu...K.ll~IDO ~ Qo 'ttP
Pleasanton, California ,
Apri127, 2007
57
SCHEDULE OF FINDlNGS AND QUESTIONED COSTS
58
SUMMARY OF AUDITORS' RESULTS
FOR THE YEAR ENDED JUNE 30, 2006
FINANCIAL STATEMENTS
Type of auditors' report issued:
Internal control over financial reporting:
Material weaknesses identified?
Reporting conditions identified not considered to be material weaknesses?
Noncompliance material to financial statements noted?
FEDERAL AWARDS
Internal control over major programs:
Material weaknesses identified?
Reporting conditions identified not considered to be material weaknesses?
Type of auditors' report issued on compliance for major programs:
Any audit findings disclosed that are required to be reported in accordance with
Circular A-133, Section SI0(a)
Identification of major programs:
CFDA Numbers
84.007, 84.032, 84.033, 84.063
84.048
Name of Federal PrOgram or Cluster
Student Financial Aid Clusters
Vocational Education-Basic Grants to States
Dollar threshold used to distinguish between Type A and Type B programs:
Auditee qualified as low-risk auditee?
STA'IE AWARDS
Internal control over State programs:
Material weaknesses identified?
Reporting conditions identified not considered to be material weaknesses?
Type of auditors' report issued on compliance for State programs:
59
Unqualified
No
Yes
No
No
None reported
Unqualified
No
$ 333,385
No
No
Yes
Qualified
FINANCIAL STATEMENT FINDINGS AND RECOM:M:ENDATIONS
FOR THE YEAR ENDED JUNE 30, 2006
None reported.
60
FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2006
None reported.
61
STATE AWARDS FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2006
The following :findings represent instances of noncompliance and/or questioned costs relating to State program
laws and regulations.
2006-1
Non Credit Courses
Criteria or Specific Requirements: Under CCR, Title 5 Sections 5002(c), 55150, and 58050, the
District is required to complete the self assessment checklist for all non-credit courses.
Condition: During our testing for State Compliance of non -credit Courses, we noted that the district
does not review their practices and procedures relative to the non-credit courses on an annual basis,
or submit a report on the results of the review. Additionally, non-credit self assessment checklists
were not prepared.
Questioned Cost: None
Context: During our visits to the college campuses we requested to review the self assessments
performed on noncredit courses.
Effect: The District is not in compliance with the monitoring regulations governing the terms of nOD
credit courses.
Cause: The campuses do not perform self assessment checklists for noncredit courses.
Recommendation: We recommend the District investigate the requirements and parameters of CCR,
Title 5 Sections 5002(c), 55150, and 58050 and retroactively complete the self-assessment checklists.
We recommend the District retain those checklists to demonstrate the district's compliance with
regulations over non credit courses.
District Response: The District will require each college to complete the self-assessment checklist
for all non-credit course offerings as required by Title 5.
2006-2
Students Actively Enrolled
Criteria or Specific Requirements: Under the California Code of Regulations, Title V, section
58003.1,58004,58005, and 58051, for attendance accounting purposes, districts are required to clear
the rolls of all inactive students as of each course section's drop date. The drop date shall be no later
than the end of business of the date immediately preceding the beginning of the census week in
weekly census procedure courses, or the day immediately preceding census day in daily census
procedure courses, and is the date used to clear the rolls of the inactive enrollment for attendance
accounting purposes. For noncredit distance learning courses, the drop date to clear the rolls of
inactive students shall be the day prior to each of the two census dates.
Condition: We noted that not all instructors submitted census rosters. Each district shall claim for
apportionment purposes only the attendance of students actively enrolled in a course section as of the
census date. District instructors are the individuals who possess the most accurate knowledge of
which students are actively enrolled at any time, and therefore, serve as the most effective way to
verify the enrollment information is accurate through reviewing and certifying their enrollment
rosters after each census date.
62
iSTAT.E A W AK.lJiS .l1li~lJli~u~ Al"llJ \.lUL~~lVl~.I!i.u '--v.;)~ i:)
FOR THE YEAR ENDED JUNE 30, 2006
Questioned Cost: Unlmown.
Context: Student FfES are determined based on students listed as enrolled as of census date.
Instructors should submit updated rosters informing admissions and records of any students who
should be dropped as of the applicable census dates. Failure to do so could cause the inclusion of
FTES for students who have never attended the course but have not fonnally completed the process
to withdraw from the course by the census date.
Effect: Failure to submit certified census rosters, results in difficulties in determining if students
were dropped at the appropriate point in time to ensure that FTES are properly reported and that state
funding is correctly determined. Census rosters not submitted to admissions and records indicate that
FTES may be overstated or understated.
Cause: During our testing of Student Active Enrollment, we noted that not all instructors are turning
in the census rosters following the census date.
Recommendation: We recommend the District remind instructors that certified census rosters
(certified either on line or on paper) are required to be submitted shortly after each census date.
District Response: The Colleges will implement new processes to ensure that all faculty submit
their enrollment rosters as required.
2006-3
Instructional Materials Fees
Criteria or Specific Requirements: Per Education Code Section 76365, districts are permitted to
require students to purchase instructional materials, but must demonstrate that the District supplies
the materials at a cost that is no more than the district's actual cost.
Condition: The District was unable to provide support fO,r the amount established as the
instructional material fee.
Questioned Cost: None.
Context: The amount set as instructional material fees may either be too high and exceed the
allowable cap, or lower than the allowable amount, in which case District operations are subsidizing
the instructional material purchases.
Effect: The District does not !mow if it is in compliance with the requirement for the upper limit on
the amount established as instructional material fees.
Cause: During our testing of Student Fees-Instructional Materials, the district was unable to provide
us with invoices that support the District's cost of instructional materials.
Recommendation: The district should develop a method to keep track of all costs for instructional
materials and compare that cost to the fee charged to students to determine if the District has charged
more than its actual costs to students.
63
0....tS...L.Ci .tS..l'l' ~~ .1.'.u."IULl"l\.J~ rtl"lU 'lU.Ci~.L.1.'-'J."I.CiJJ '""''-'0.1. ~
FOR THE YEAR ENDED JUNE 30, 2006
District Response: The District will review and update its methodology for developing course fees
and the subsequent tracking of costs to ensure that the fee charged is in compliance with student fee
regulations.
2006-4
Salaries of Classroom Instructors
Criteria or Specific Requirements: Education Code 84362, commonly mown as the 50% law
requires that a minimum of 50% of a District's current expense of education be spent on for salaries
of classroom instructors.
Condition: During our review of classification of instructor salaries used in calculating the 50%
test, we noted two instances where a total of $18,066 of reassigned time was erroneously coded to
instructional time. Therefore, these amounts were erroneously included in the numerator of the 50%
law calculation.
Questioned Cost: None.
Context: We reviewed five instructors with reassigned time totaling $90,225 and noted two
instances where there were classification errors.
Effect: The numerator of the formula calculating the 50% test for salaries of classroom instructors
was too high by the $18,066 of reassigned time that was erroneously included. After reduction the
numerator by $18,066, the District continued to meet the 50% threshold.
Cause: Inappropriate coding of instructor salaries in the financial system
Recommendation: We recommend the District review coding of faculty reassigned time to verify
that all those. individuals with reassigned time are classified as such in the financial system in order to
produce accurate reports for use in calculating the 50% test.
District Response: The District will add a step to the year-end closing process to verify all
reassigned time is coded to the proper object of expenditure code as prescribed in the State
Accounting Manual.
64
;:SUIVJ.MAKr iSL.I::I..J!..UULJ!.. UJ:1 rKlUK AUV.l.l .rll'lVll~u-~
FOR THE YEAR ENDED JUNE 30, 2005
Except as specified in previous sections of this report, smmnarlzed below is the current status of all audit findings
reported in the prior year's schedule of audit findings and questioned costs.
Financial Statement Findings
2005-1
Employment EligI"bility Verification Form (1-9 Form)
Criteria or Specific Requirements: The Immigration Reform and Control Act of 1986 mandates
employers to verifY authorization to work in the United States for anyone hired after November 6,
1986. 1-9 Forms are required to be completed and signed by both employer and employee prior to
commencement of employment
Coudition: During our review of the payroll and personnel files, we noted 1-9 forms were not
consistently maintained as required by the Deparbnent of Justice, Immigration and Naturalization
Service (INS).
Questioned Costs: None
Context: The above condition was noted dming the internal control walkthrough procedures for
payroll and personnel records. Six of the ten forms requested for review were unable to be located.
Effect: The District is not in compliance with the immigration laws and regulations.
Cause: Procedures and internal controls over payrolIJpersonnel records should be strengthened to
ensure district's compliance with laws and regulations.
Recommendation: We recommend the personnel department investigate reason for missing forms
and address and consider the need to review all personnel files in order to verifY that every employee
hired after 1986 has a form 1-9 which is completed and certified to by the signatures of both the
employer and a District representative.
Current Status
Implemented.
65
--.............'1'.&..1............... ......._~____ _A .A....'-A._..._.....__....A. .........,_.........__
FOR THE YEAR ENDED JUNE 30, 2005
State Award Findings
2005-2
Census Procedures and Calculation
Criteria or Specific Requirements: Under the California Code of regulations, Title 5, section
58003 a Community College District is required to calculate the units offuIl-time equivalent student
hours for the pmpose of determining the State funding to be received. Ftnihermore, under this
regulation, sUbsection 58030, the District is required to adopt procedures for the retention of support
documentation which will enable an independent determination regarding the accuracy of tabulations
submitted by the district to the Chancellor's Office as the basis of its claim for State support. Such
support documentation procedures shall provide for accurate and timely attendance and contact hour
data and shall be so structured as to provide for internal controls.
Condition: During our testing of State Compliance requirements under required data elements at Las
Positas College, it was noted that several students were not accurately recorded as withdrawing from
a class. Several students were marked by the instructor as being dropped from the course on census
date in August, however, per the FTES software system some students were not recorded as
withdrawn until September.
Questioned Costs: Based on the audit procedures applied to the daily census courses mentioned
below an error rate of 7% (Calculation: course generated 4A3FTES divided by the AOFTES (3
students) that is questionable). Applying this error rate to the amount of FTES reported on the
Attendance Apportionment report (CCFS-320) of 495.36 F1ES for daily census courses results in a
total potential of 35 FTES in question. Based on the District's calculation of funding per credit FTES
amount of $3,088.71, the total questioned cost is $108,105.
Context: The above condition was noted during the audit procedures prescnbed under the Required
Data Elements section of the State Controllers Audit Guide, May 2005. Religious Studies class
(21185) roster on the census date of August 30, 2004 was selected for review. During the audit
procedures, we noted that one of the causes of the discrepancies in withdrawal dates is due to the fact
that several instructors did not certify their scantrons until September 22, 2004.
Effect: The District has over reported the number of full-time equivalent students that are eligible for
State fimding. The College has performed fi.nther investigation to determine the extent of the
discrepancies. In order to recalculate the FIES, the College reviewed every census roster for Fall
2004 and Spring 2005. Through this process, the College identified 201 faculty census rosters that
had attendance discrepancies in comparison to Banner data. Those census rosters represented the
total possible over claimed FIES. From scantrons, the College further determined that there were
417 students with drop dates that were different from the dates recorded FTES software system. The
College contacted each instructor and requested additional support for accurate drop dates for these
students. From this information, the College was able to reach a conclusion that 21 FfES were
claimed in error which equates to approximately $63,600 of State funding. The 2005-2006 P-I report
was reduced by 21 FIES to accommodate the 21 FIES overage from 2004-2005.
66
FOR THE YEAR ENDED JUNE 30, 2005
Cause: Procedures and internal controls over the accumulation of data used to accumulate and report
FTES accurately needs to be strengthened to ensure that the census procedures comply with the
regulations. .
Recommendation: The College should determine a method of ensuring that census date drops are
accurately captured on the census date. The drop date should be the earlier of the census date or the
self withdrawal date. If a student has, in person or via the Internet, withdrawn himself or herself after
the census date, but before the instructor has returned the census count, there should be a discrepancy
flag notifying the College to investigate this student and determine the appropriate drop date. At
present, we were unable to see that there is a method in place to notify the Admissions and Records
personnel that the instructor certified the student should be dropped as of census date and instead the
FTES data system shows the student's record as indicates a self-withdrawal at a later date.
Current Status
Implemented
2005-3
Remedial Course Monitoring
Criteria or Specific Requirements: Under the California Code of Regulations, Title 5, Division 6,
subsection 55756.5 the District is required to implement procedures for the monitoring of a student's
need for remedial course work. This requirement also includes monitoring that no student receives
more than 30 semester (45 quarter) units of credit for such classes.
Condition: Chabot and Las Positas
Colleges were unable to locate a written policy for the above compliance requirement.
Questioned Costs: There are no questioned costs associated with the above condition.
Context: The above condition was noted during the audit procedures prescribed under the Standards
of Scholarship section of the State Controllers Audit Guide, May 2005.
Effect: The Colleges may be allowing students to attend a greater number of remedial courses than
allowed to be fimded by public funds.
Cause: Unknown
Recommendation: The Colleges should investigate the requirements and parameters of CCR
55756.5 in order to adopt a policy on the allowable limits of remedial coursework. With the adopted
policy the Colleges should include a monitoring control that will allow testing of compliance with the
State requirements.
Current Status
Implemented
67
FOR THE YEAR ENDED JUNE 30,2005
2005-4
Standards of Scholarship - Course Repetition
Criteria or Specific Requirements: Under the California Code of Regulations, Title V, subsection
58161, specific criteria must be met for a District to claim repeated courses for State apportionment
Additionally, the regulations have placed a limit on the number of times a student repeating a course
can be claimed for apportionment These regulations require the District to identify and evaluate
each repeating student and to reduce FTES for those amounts associated with students that have
exceeded the apportionment limit of three repeats.
Condition: At Las Posits College certain classes allow students to repeat the course several times, as
is allowable in various situations. However, in all cases there are a maximum number oftimes for
which the course repeat may be claimed for apportionment. During our audit of the State
Compliance requirements, we noted that the District is not reducing apportionment for the FI'E's
associated with repeated classes exceeding the maximum of three repeats allowable for
apportionment purposes. The registration system is designed to allow the District to indicate if a
class allows only the original course plus three repeats or an unlimited number of repeats, however
there is no mechanism to reduce FfES apportionment for those students repeating a class more than
three times.
Questioned Costs: Unknown due to no system tracking the number of repeats exceeding the three
allowable repeats.
Context: The above condition was noted during the audit procedures prescribed under the Standards
of Scholarship section of the State Controllers Audit Guide, May 2005.
Effect: Not deducting for unallowable repeats results in overreporting ofFfES for State
Apportionment, and thus resulted in the District having been over paid by the State.
Cause: The registration system is not tracking and removing repeat courses not allowed for
apportionment purposes from totals reported for apportionment.
Recommendation: Maintaining a system to track and evaluate FTEs generated from repeatable
course work is important in ensuring the correct reporting for the number of FTEs and therefore the
calculation of state apportionment revenues. In order to comply with the State regulations, the
College should implement a method of identifYing and deducting repeats unallowable for
apportionment purposes.
Current Status
Implemented.
68
City of Dublin
Fiscal Year 2008-2009
Attachment D
Application for Funds
ApPLICATION VERIFICATION
I attest that the information contained in this FY 2008-2009 grant application is accurate and that
the funds requested will not supplant any other mOIl" es secured by the organization.
Attached is a resolution, letter, or other document providi evidence that the Board of Directors
\::,;:."','.,,,":',--,-,-,,< -","/'-'.'-- '
approved the application as submitted. Successful applican are required to submit a summary
report as soon as possible after submitf the reimburse t requ t, but not later than August
30,2009. Failure to submit a report w lity for.e funding.
;;
i
Robert Kratochvil
Executive Director
Signatures:
Carlo Vecchiarelli
Board President/Chairperson
Date
**16 page Grant application submitted electronically pending board approval**
~~::ct~:.es ..;;1I~ !lk~
" "
Submitted GdIi:t application electronically
1/23/08
SECTION 2
Page 11 of 16
~,\ \ ... , ~M.M\;- t....
SWACC CERTIFICATE OF COVERAGE ISSUE DATE 07/20/07
I
ADMINISTRATOR: LICENSE # 0451271 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
KEENAN & ASSOCIATES ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
1111 Broadway HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
Suite 2000 ALTER THE COVERAGES AFFORDED BY TH E COVERAGE
Oakland CA 94607 DOCUMENTS BELOW.
COVERED PARTY: ENTITIES AFFORDING COVERAGE
ENTITY A Statewide Assoc. of
Chabot-Las Positas Comm. College Dist. Community Colleges
5020 Franklin Drive
Pleasanton, CA 94588-3354
ATTN: Lorenzo Legaspi
THIS IS TO CERTIFY THAT THE COVERAGES LISTED BELOW HAVE BEEN ISSUED TO THE COVERED PARTY NAMED ABOVE FOR THE PERIOD INDICATED, NOTWITHSTANDING
ANY REQUIREMENT. TERM, OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN
THE COVERAGE AFFORDED HEREIN IS SUBJECT TO ALL THE TERMS, AND CONDITIONS OF SUCH COVERAGE DOCUMENTS.
ENT TYPE OF COVERAGE COVERAGE EFFECTIVE I MEMBER
LTR DOCUMENTS EXPIRATION DATE RETAINED LIMIT LIMITS
I DEDUCTIBLE
GENERAL LIABILITY
A [XlGENERAl LIABILITY SWC0150007 07/01/07 COMBINED SINGLE LIMIT
[ ]CLAIMS MADE [X]OCCURRENCE EACH OCCURRENCE
[X]GOVERNMENT CODES 07/01/08 $2 5 , 0 0 0 $1,000,000
[XjERRORS & OMISSIONS
[ 1
AUTOMOBILE LIABILITY
[X1ANY AUTO COMBINED SINGLE LIMIT
A [X]HIRED AUTO SWC0150007 07/01/07 EACH OCCURRENCE
[X]NON-OWNED AUTO 07/01/08 $2 5 , 0 0 0 $1,000,000
[xJGARAGE LIABILITY
[XJAUTO PHYSICAL DAMAGE
PROPERTY SWC0150007 07/01/07
A All RISK 07/01/08 $1 0 , 0 0 0 $250,000,000
EXCLUDES EARTHQUAKE & FLOOD EACH OCCURRENCE
A STUDENT PROFESSIONAL LIABILITY SWC0150007 07/01/07
07/01/08 $5 I 0 0 0 $ Inc11.1ded
EACH OCCURRENCE
DESCRIPTION OF OPERATIONS I LOCA TrONS I VEHICLES I RESTRICTIONS I SPECIAL PROVISIONS:
As respects to the City Grant Recipient Agreement between Las positas
Community College, dba Tri-Valley One-Stop Career Center and the City of
Pleasanton dated 7/11/07.
CERTIFICATE HOLDER: CANCEUAllON ...... SHOULD ANY OF THE ABOVE DESCRIBED COVERAGES BE
CANCELED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING ENTITY! JPA
CITY OF PLEASANTON WILL ~~:e;.MAIL 30 DAYS VvRITTEN NonCE TO THE CERTlFlCA TE
200 Old Bernal Avenue HOLDER NAMED TO THE LEFT, CltRmc~~~~~~~
Pleasanton, CA 94566 !M~~~KfJm~~~~~~~JID1~
~N:~~!:l;:~~)tWXMr<!X3X
g;>~ r?~
ATTN: Nelson Fialho, City Manager AUTHORIZED REPRESENTATIVE
K&A. .P/l..06/2000 1 0 f 1
#S83533/M77153
R3M
A.C.# 83533
STATEWIDE ASSOCIATION OF COMMUNITY COLLEGES
ENDORSEMENT
ADDITIONAL COVERED PARTY
COVERED PARTY
COVERAGE DOCUMENT
ADMINISTRATOR
Chabot-Las Positas Comm.
College Dist.
SWC0150007
KEENAN & ASSOCIATES
Subject to all its terms, conditions, exclusions and endorsements, such additional
covered party as is afforded by the coverage document shall also apply to the
following entity but only as respects to liability arising directly from the actions and
activities of the covered party described under "as respects" below.
Additional Covered Party:
CITY OF PLEASANT ON
200 Old Bernal Avenue
Pleasanton, CA 94566
As Respects:
As respects to the city Grant Recipient Agreement between
Las positas Community College, dba Tri-Valley One-Stop
Career Center and the City of Pleasanton dated 7/11/07.
The City of Pleasanton,its elective and appointed boarsd,
commissions, agents, employees, and volunteers are included
as Additional Covered Parties but only as respects to the
sole neglience of Chabot-Las positas Community College
District.
This coverage shall be primary to the certificate holders
coverage as respects the actions and activities of the
Covered Party due to their sole ~egligence.
cP~ 7612--
Authorized Representative
~~.\.~M.e.nT r
Internal Revenue Service
i:e: January 3, 2007
Department of the Treasury
P. O. Box 2508
Cincinnati,OH 45201
CHABOT-LAS POSITAS COMMUNITY COLLEGE
DISTRICT
5020 FRANKUN DRIVE
PLEASANTON CA 94588-0000
Person to Contact:
Mr. Schatz ID 31-08701
Customer Service Representative
Toll Free Telephone Number:
877 -829-5500
Federal Identification Number: .
94-1670563
Dear Sir or Madam:
This is in response to your request of January 3,2007, regarding your organization's federal tax status.
Our records indicate that your organization may be a governmental instrumentality or a political subdivision of
a state.
~IO provision of the Internal Revenue Code imposes a tax on the income of governmental units (such as states
ld their political subdivisions). Therefore, it has been the position of the Service that income of governmental
its is not generally subject to federal income taxation. If, however, an entity is not itself a governmental unit
\ \..ir an "integral part" thereof), its income will be subject to tax unless an exclusion or exemption applies.
One exclusion is provided by section 115(1) of the Code, which excludes from gross income:
"...income derived from ... the exercise of any essential governmental function and
accruing to a State or any political subdivision thereof ...n
Your organization's income may not be subject to tax, either because the organization is a governmental unit
(or an "integral part" thereof), or because the income is excluded under section 115. In addition, your
organization may also be eligible to receive charitable contributions, which are deductible for federal income,
estate, and gift tax purposes. Also, your organization is probably exempt from many federal excise taxes.
Your orgs.nization may obtain a letter ruling on its status under section 115 by following the procedures
specified in Rev. Proc. 2002-1 or its successor.
Your organization may also qualify for exemption from federal income tax as an organization described in
section 501 (c)(3) of the Code. If the organization is an entity separate from the state, county, or municipal
government, and if it does not have powers or purposes inconsistent with exemption (such as the power to tax
or to exercise enforcement of regulatory powers), your organization would qualify under section 501 (c)(3). To
apply for exemption, complete Form 1023 and pay the required user fee.
Attachment G
a. How would the requested funds be used?
· Describe, in detaiL the PROPOSED PROJECT/PROGRAM (not the
agency).
· Bulleted text is acceptable.
· Identify if the proposed project/program is a new service, or extension of
an existing one.
The Tri-Valley One-Stop Career Center, which is primarily funded by the Alameda
County Workforce Investment Board (ACWIB) and fiscally operated by Las Positas
Community College, is applying for funding to support the continuing efforts of our
career center.
Our overall mission is to provide resources and services in support of employers and all
job, training and education seekers. All services are free of charge to our community.
Specifically, the additional funding would be used to continue to serve Dublin residents
in the following ways:
.
Requested funds would be used to provide workforce development
activities to Dublin citizens categorically classified as job seekers, laid off
workers, youth, new entrants to the workforce, veterans, persons with
disabilities, ex offenders and services for employers.
This program is an extension of services offered at the Chabot-Las Positas
College/Tri- Valley One-Stop Career Center acting in compliance with the
Federal Workforce Investment Act of 1998.
.
Examples of service to be offered are as follows; Core, intensive training and to provide
outreach services to youth.
Core services consist of labor market information, initial assessment of skill levels, job
search and placement assistance. Initial assessment and development of Individual
Employment Plan, vocational counseling, development of professional resume(s),
personalized and video-taped mock interview sessions and feedback, job development
and job referrals, financial assistance addressing mental health concerns, testing services
(i.e. typing tests, software assessment skills tests, etc), financial assistance to purchase
appropriate textbooks or job-specific equipment/licenses (i.e. tool sets, nursing uniforms,
Hazmat endorsements, etc), reimbursement of certain parking fees, reimbursement of
certain transportation fees; vocational training programs; job retention services; and on-
the-job training (OlT) services.
1
Intensive services are available to eligible unemployed individuals who have completed
at least on core service, but have not been able to obtain employment, or employed
individuals needing additional services to obtain or keep employment that will lead to
personal self-sufficiency.
The youth component outreach services started in May 2006. It has provided
employment and educational services as well as career exploration services to Dublin
youth ages 14-21. The Tri- Valley One-Stop Career Center has created a youth friendly
area within the facility which includes job listings for youth, books, and other materials
specifically addressing the needs of our young customers. Goals are to continue the
expansion of the youth program, to include the following;
· Provide on-going outreach, employment and vocational counseling
services to Dublin youth, with a particular focus on at-risk, foster youth
and youth with disabilities:
· Meet with youth at local High Schools and Dublin Library, work closely
with High School Counselors and Workability Coordinators,
Apprenticeship program coordinators, participate in High School or local
Youth Job Fairs, participate in other events relating to youth employment,
work with local businesses to create youth-friendly jobs, provide
opportunities for volunteer work, job shadowing, or internships.
· Increase the selection of books and materials (i.e. DVDs, software, test
preparation books, job search guidance books for youth, apprenticeship
training materials, etc.)
b. How would the PROPOSED PROJECT/PROGRAM address an unmet
community need and improve the quality of life for Dublin residents. Why is this
project/program needed?
The past contributions of the City of Dublin have played a significant role in the success
we have had in providing resources and services to job, education, and training seekers to
the city's residents. The $15,000 requested funds would address the ever present need for
Dublin residents to have access to up-to-date local area job market information and
workforce related services designed for local needs. This, in turn, would help streamline
the process for people seeking to gain entry into and or transition from an ever changing
and fast paced employment sector. The program is needed because it would promote an
improved quality of life for the people of Dublin through increases in gainful
employment, job retention, earnings and occupational skills improvement, thereby
reducing public assistance.
2
ADULT SERVICES
A forecast for a possible recession looms into the 2008/2009 fiscal year. We therefore
anticipate a stronger need for the services ofthe Chabot-Las Positas College/Tri-Valley
One-Stop Career Center to meet the impending lay-offs from the financial/mortgage
industry which has already started to affect Dublin residents.
Additionally, Dublin residents who visit our center repeatedly and on a regular
basis are experiencing unemployment issues, and psychosocial concerns are on
the rise and need to be addressed, i.e. divorce, substance abuse, mental health
issues, fear oflosing one's home or not being able to provide for one's family.
Staff assisted job search guidance and strategizing, labor marker research,
vocational and personal counseling, job development, retraining for skills
upgrading, and appropriate referrals, to name a few, may all be services useful in
stabilizing their situations and providing assistance in once again becoming
economically self-sufficient through proper employment.
Another large group from within our Dublin service area that seeks our assistance
is comprised of individuals wishing to re-enter the workforce after a prolonged
absence (i.e. 3 years+). Mainly, these are women who have stayed home to raise
their children or have taken care of an ailing parent. At some point in time, they
either wish or need to rejoin the workforce and to contribute financially to their
families. More often than not, these customers lack the in-demand skill, expertise
and knowledge of the existing labor market conditions necessary to compete in
today's economy. Our comprehensive services allow them to become
reacquainted with the world of work and obtain the necessary skills and tools to
increase the marketability of their skill.
The job market remains a competitive field and many job seekers and career
changers need up-to-date and in-demand skills to compete for open positions or
retain their current jobs. Many others are currently employed but may need to or
wish to upgrade their skills in order to become more marketable and subsequently
being able to compete for higher paying and in-demand occupations. Our
services prepare worker and job seekers for new and in-demand job opportunities
in high growth, high-demand, and economically vital industries/sectors of the
local and or American economy.
YOUTH SERVICES .
On a daily basis, students drop out of High School and even Middle School. Without a
high school diploma, many of these individuals will most likely enter a perpetual cycle of
unemployment, government assistance, and possibly prison. According to the California
Department of Education, almost one-third of high school students drop out. This
problem is further exacerbated by the fact that another third will graduate without the
credits needed to attend a four-year university. While many may try to attend college, a
large percentage fail as they do not have the skill to decide on a major or understand how
the classes relate to the world of work.
'"'
.)
Youth, in particular at-risk, foster youth and those with disabilities face particular
challenges when it comes to job search and decision making about future careers and or
educational choices. The purpose of our youth service is to provide assistance to young
people in their vocational endeavors and to help them develop skills, habits and attitudes
conducive to job success and personal growth.
Many youth in our Dublin service area are unaware of potential employers. While many
have a need to work in order to assist in the provision of the family or to become
financially independent, they lack the skill and the knowledge of how to locate and
secure employment. With a strong vocational project, many of these youth will have
assistance in locating appropriate and fulfilling work or making appropriate educational
choices.
In addition, the State of California - Department of Children and Family services - now
mandates that all foster youth register with their local One-Stop Career Center upon
turning 15 YZ. Henceforth, our One-Stop is busy trying to accommodate and assist our
local foster youth.
Overall, the program and services will assist Dublin residents, both youth and adults, to
become economically self-sufficient and to empower them with the skills, tools, and
resources to remain competitive in a rapidly changing global economy. The Dublin
community will ultimately be able to reap the benefits of an educated and competitive
workforce.
c. What documentation/data records support the need for this PROPOSED
PROJECT/PROGRAM? Please identify your data sources.
Based upon the SmartWare tracking software for the 2007 fiscal year, the Chabot-Las
Positas College/Tri- Valley One-Stop Career Center provided basic to intensive services
to 1,180 Dublin residents. The basic services included but were not limited to access to
high speed internet, fax, telephone, copy machine (at no charge) and work related
workshops to more intensive type services such as career counseling, mock interviews
and referrals to various social service type agencies. Only five Dublin residents working
with individual Case Managers/Career Counselors out of the I, 180 served were deemed
unable to keep or obtain new employment with their current skill sets. Those five were
placed in further intensive training programs. The training is still ongoing for those five
and the cost of that training thus far totaled $18,744.00. All of the above services
mentioned were provided to all 1,180 Dublin residents free of charge. As the
mortgage/financial services crisis continues it is affecting a broad spectrum of workers
ranging from construction, title, real estate, banking/loan institutions etc., and it will be
critical to continue funding the One-Stop Career Center. It is this agency's contention
that not only will there be a great need for our services in the East Bay as a whole but for
some residents of Dublin specifically. As such, we are requesting $15,000 to be able to
meet the additional and extraordinary challenges of the mortgage/financial services crisis.
d. Specify the PROPOSED PROJECT/PROGRAM population to be served.
4
.
All Dublin youth, ages 14-21, with a particular emphasis on at-risk, foster
youth, and youth with disabilities.
Dublin adult population (18+) (i.e. laid off workers, long-term
unemployed or underemployed individuals, individuals wishing to reenter
the workforce, individuals in need of skills upgrade training, vocational
counseling, or strategic job search guidance)
.
e. Projects/programs must be evaluated to determine if they are being carried out
efficiently and if project/program goals are being met. Please describe how you
plan to monitor your project/program's success and impact.
In regards to monitoring the program's success and impact on the individual participants,
all participants enrolled in the intensive services program component are being tracked
and followed up continuously throughout enrollment and for up to 12 months after the
program completion by our Case Managers. Therefore, Case Managers are able to
develop excellent rapport and close relationships with those clients receiving intensive
services, i.e., training or counseling services. Case Managers are able to keep accurate
records and data on a client's educational and training achievements as well as
employment and job retention information. Certain data, i.e. a client's training and
employment status are also being reported to and monitored by the Alameda County
Workforce Investment Board, with data supported by the Employment Development
Department based on the participant's social security number. Based on our submitted
information as well as the data provided by the (EDD), Alameda County (WIB) issues
monthly progress reports as well as a final annual report. The reports are made available
to staff, all Board members, all ACWIB staff, community partnership agencies, and other
local One-Stop Career Center staff.
Clients who are not enrolled in the intensive component of the program are being
followed up with using our tracking software and database information - 'SmartWare.'
In addition, we mail surveys to all previously enrolled customers exploring their level of
satisfaction with the project as well as ideas for improvement.
Alameda County (WIB) also conducts an annual 'customer satisfaction' survey, which is
being given to all enrolled and non-enrolled (universal) customers. Since the survey's
inception four years ago, the Chabot-LasPositas/Tri-Valley One-Stop Career Center has
ranked highest the last three years among all 14 career centers (in Alameda and Contra
Costa counties included in the survey. As a result, we received the "Goldstar for
Exemplary Customer Service" award.
5
.. . Infinite pO<frJwiLitied
Castro Valley
Centerville
Dublin
Extension Services
Fremont Main
Irvington
Newark
Niles
San Lorenzo
Union City
LIBRARY
January 24,2008
To Whom It May Concern:
The Tri-Valley One Stop Career Center has been working with the Dublin Library as a
partner since we moved to our new location in April, 2003. We have established an
effective working relationship that takes advantage of our resources and helps each of our
organizations better serve the community.
This past year the focus has been on their Teen Advocate Program. Once a month for 2
hours, a career counselor from One Stop would come to the library and be available to
teens and their parents. During these valuable one on one sessions, the counselor
answered questions regarding jobs, gave help with career planning, advised teens on
continuing education & helped them figure out what to do next. This was a convenient,
welcoming environment that made it easy for teens to get the needed direction to fulfill their
future goals.
The Tri-Valley One Stop Career Center has been a welcome partner for the Library. The
staff are experts in their field and provide a free, easily accessible service to the
unemployed and those wanting to change jobs or careers. Offering workshops at the
library broadens their base and exposes the wider community to the excellent service they
provide. As librarians, we are frequently asked for information on how to go about finding a
job or a new career. The Library has an excellent and extensive collection of employment
and career resources but it is with pleasure that we can also offer patrons with confidence
the additional personal expertise they can receive from the Tri-Valley One Stop Career
Center.
The benefit to Dublin citizens is that the Career Center, in cooperation with the Library,
really helps people find jobs. It's an invaluable service to the community. The Library
welcomes this partnership and highly supports the endeavors of the Tri-Valley One Stop
Career Center.
Sincerely,
Donna Leach, Teen Services Librarian
Dublin Library
200 Civic Plaza
Dublin, CA 94568-2383
925-828-1315
FAX 925-828-9296
www.aclibrary.org