DIST	DESCRIPTION	AMOUNT

001C	COUNTY OUTSIDE CITIES W/ OC FIRE AUTH	379,560,830.63
001D	COUNTY INSIDE CITIES W/ OC FIRE AUTH	0.00
001E	COUNTY INSIDE CITIES W/O OC FIRE AUTH	-48.18
002A	ORANGE COUNTY PUBLIC LIBRARY	45,551,562.71
051A	ANAHEIM CITY	7,615,592.98
052B	BREA CITY	1,693,030.27
053B	FULLERTON CITY	4,998,257.10
054A	HUNTINGTON BEACH CITY	11,600,778.72
055B	LAGUNA BEACH CITY	4,046,178.48
055F	LAGUNA BEACH CITY-1979 ANNEX	201.93
056A	LA HABRA CITY	1,598,016.35
057A	NEWPORT BEACH CITY	8,542,106.44
058B	ORANGE CITY	4,615,136.33
059A	PLACENTIA CITY	1,848,768.93
060B	SAN CLEMENTE CITY	3,704,759.92
061B	SANTA ANA CITY	8,213,543.77
062B	SEAL BEACH CITY	1,571,464.29
063B	TUSTIN CITY	2,057,852.08
064A	BUENA PARK CITY	1,604,351.65
065B	COSTA MESA CITY	5,013,260.24
066A	LA PALMA CITY	639,085.20
067A	STANTON CITY	367,048.59
068A	GARDEN GROVE CITY	3,413,437.80
068C	GARDEN GROVE CITY ANX W/O PARAMEDICS TAX	17,805.40
069A	CYPRESS CITY	1,374,608.34
070A	WESTMINSTER CITY	630,246.44
071A	FOUNTAIN VALLEY CITY	2,199,452.68
072A	LOS ALAMITOS CITY	500,917.81
073A	SAN JUAN CAPISTRANO CITY	1,463,430.84
073B	SAN JUAN CAPISTRANO CITY-R/T 97.70 ANNEX	87,180.27
074A	VILLA PARK CITY	347,346.15
075A	YORBA LINDA CITY	1,233,991.75
076A	IRVINE CITY	3,029,572.09
077A	MISSION VIEJO CITY	1,881,650.62
078A	DANA POINT CITY	4,090,254.91
079A	LAGUNA NIGUEL CITY	449,510.22
080A	LAKE FOREST CITY	168,880.97
081A	LAGUNA HILLS CITY	60,390.84
084A	ALISO VIEJO CITY-	647,668.44
703A	ORANGE COUNTY CEMETERY DISTRICT	2,144,036.43
706A	ORANGE COUNTY FIRE AUTHORITY	-10,682,827.57
708A	ORANGE COUNTY TRANSIT AUTHORITY	7,162,758.30
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	31,098,602.32
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	11,194,875.80
716A	BUENA PARK LIBRARY DISTRICT	834,635.95
717A	PLACENTIA LIBRARY DISTRICT	1,847,407.78
721B	CYPRESS MUNI LIGHTING DIST #2	39,768.48
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	3,499,847.78
748B	CYPRESS RECREATION & PARK DIST.	885,756.76
750A	SILVERADO-MODJESKA RECREATION & PARK DIS	33,013.41
757B	COSTA MESA SANITARY DIST-	135,746.91
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	909,854.15
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	1,185,325.06
760A	MIDWAY CITY SANITARY DIST	1,660,655.10
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	1,169,567.89
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	445,056.10
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	1,551,650.31
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	35,347.53
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	554,791.82
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	2,306,110.88
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	87,798.24
790A	COUNTY SERVICE AREA # 13-LA MIRADA	612.18
797A	COUNTY SERVICE AREA # 20-LA HABRA	5,049.36
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	870,112.59
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	5,495.25
800B	SOUTH COAST WATER-CAP BCH WATR ID2-ZN6	269,673.01
803A	EAST ORANGE COUNTY WATER DISTRICT	485,436.88
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	1,622,243.29
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	5,241.11
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	49,300.32
808B	TRABUCO CANYON WATER DIST	1,066,172.55
809A	SANTIAGO COUNTY WATER DISTRICT	212,335.11
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	806,367.08
812A	YORBA LINDA CO WATER DIST	979,469.75
914A	YORBA LINDA GREENBELT MAINT. DIST #1	3,084.31
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	162,142.97
916E	ORANGE CO SANITATION DIST (OLD OCSD#3)	2,799,682.78
916F	ORANGE CO SANITATION DIST (OLD OCSD#5)	1,568,254.65
916G	ORANGE CO SANITATION DIST (OLD OCSD#6)	708,415.87
916H	ORANGE CO SANITATION DIST (OLD OCSD#7)	336,162.52
916J	ORANGE CO SANITATION DIST (OLD OCSD#11)	1,477,723.02
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	0.00
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	1,539,441.71
932A	SURFSIDE COLONY STORM WATER PROTECTION D	96,468.11
941A	IRVINE CITY-OCSLM DISTRICT #10	444,457.34
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	81,242.32
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	46,986.78
965A	COSTA MESA-VEHICLE PARKING DIST #1	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	22.80
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI	4,836.13
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	76,309.76
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	74,724.61
980A	STANTON MUNI HWY LIGHTING DISTRICT	26,569.30
981A	EL TORO WATER DISTRICT	444,883.55
982B	IRVINE RANCH WATER DIST	118,740.93
982C	IRVINE RANCH WATER DIST IMP DIST #1	64,082.29
982E	IRVINE RANCH WATER DIST IMP DIST #2	91,894.61
982F	IRVINE RANCH WATER DIST IMP DIST #3	73,618.59
982G	IRVINE RANCH WATER DIST IMP DIST 104	185,513.94
982H	IRVINE RANCH WATER DIST IMP DIST 204	470,507.26
982K	IRVINE RANCH WATER DIST IMP DIST 105	17.67
982L	IRVINE RANCH WATER DIST IMP DIST 206	19,976.27
982W	IRVINE RANCH WATER DIST IMP DIST 250	17.59
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	1,133,191.37
984B	MOULTON-NIGUEL WATER DIST	4,289,837.52
984C	MOULTON-NIGUEL WATER DIST-I D # 1	1,636,022.09
984D	MOULTON-NIGUEL WATER DIST-I D # 2	28,025.02
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	310,702.33
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	778,048.33
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	1,822,420.54
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	1,750,181.09
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	691,987.52
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	376,684.02
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	355,190.23
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	132,490.26
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	1,570,625.78
984U	MOULTON-NIGUEL WATER DIST-I D # 8	46,417.36
986B	SANTA MARGARITA WATER DISTRICT	333,289.44
986C	SANTA MARGARITA WATER IMP DIST #1	1,043.83
986D	SANTA MARGARITA WATER IMP DIST #2	28,933.66
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	3,572.72
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	659.53
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	934.68
995B	SUNSET BEACH SANITARY DISTRICT	89,935.46

	TOTAL	607,211,503.02

Budget Transfers Within a Fund/Agency

SUBJECT:

BUDGET TRANSFERS WITHIN A FUND/AGENCY
NUMBER:

A.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 12/01

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

All transfers of appropriations between expenditure object accounts within a fund/agency must be submitted to the Auditor-Controller on an Expense Budget Transfer form. (See Exhibit I.) All transfers of appropriations from the salary and benefit expenditure object accounts must also receive County Executive Office (CEO) approval. All transfers of estimated revenues between revenue source accounts within a fund/agency must be submitted to the Auditor-Controller on a Revenue Budget Transfer form. (See Exhibit II.)

Transfers of appropriations or estimated revenues between fund/agencies and transfers of appropriations from the appropriation for contingencies are not covered by this County Accounting Procedure (CAP), and cannot be made on Budget Transfer forms. These types of transfers require approval of the Board of Supervisors. Refer to CAP No. A.2., Changes to Appropriations, Estimated Revenues, and Reserves, for these types of transfers.

1.1 Purpose

To provide forms and procedures for making budget transfers between expenditure object accounts and revenue source accounts within a County fund/agency, in accordance with applicable statutes and Board of Supervisors (Board) resolutions.

1.2 Authority

To provide forms and procedures for making budget transfers between expenditure object accounts and revenue source accounts within a County fund/agency, in accordance with applicable statutes and Board of Supervisors (Board) resolutions.

1.2.1 State of California Government Code

Sections 29120 and 29121
Section 29120 limits obligations to appropriated amounts. Section 29121 states that "…the official authorizing the obligation in an amount known by him to be in excess of the unencumbered balance of the appropriation against which it is drawn is liable therefore personally and upon his official bond."

Section 29125
Section 29125 provides that the Board may make transfers and revisions with respect to the appropriations as specified in the resolution of adoption of the budget, except with respect to transfers from the appropriation for contingencies (which are covered by Section 29130), by a majority action formally adopted by the Board. Section 29125 also allows the Board to designate a County official to approve transfers and revisions of appropriations within a budget unit, which is defined as a fund/agency in the County Budget. (See Section 1.2.2 of this procedure for the Board's delegation of this authority to the Auditor-Controller.)

1.2.2 Board of Supervisors' Resolution No. 97-415

Adopted pursuant to Government Code Section 29125, Board Resolution No. 97-415 dated September 16, 1997, delegates to the Auditor-Controller the power and authority to make transfers and revisions of appropriations within a budget unit, with the exception of transfers of appropriations from salary and benefit account codes, which must receive CEO approval. A budget unit is a discrete fund/agency in the County Budget.

1.3 Definitions

1.3.1 Appropriations

A legal authorization granted by the Board to make expenditures and to incur obligations for specific purposes, as provided for in the Board's annual adoption of the County Budget, and as changed thereafter by budget transfers and by changes to the Budget made by the Board. An appropriation is limited in amount and in the time it may be expended. Appropriations in the County Budget are controlled at the major object of expenditure, also called "category" of expenditure, which are:

Salaries and Employee Benefits (Object Codes 0100-0490)

Services and Supplies (Object Codes 0500-2890)

Other Charges (Object Codes 3000-3900)

Equipment (Object Code 4000)

Land, by Project (Object Code 4100, Controlled by Organization Code)

Buildings and Improvements, by Project (Object Code 4200, Controlled by Organization Code)

Other Financing Uses (Object Codes 4700-4809)

Residual Equity Transfers (Object Codes 5000-5009)

Contingencies (Object Code 5200)

Miscellaneous (Object Codes 5300-5500)

In addition, Operating Transfers Out (Object Codes 4800-4809) and Residual Equity Transfers Out (Object Codes 5000-5009) are controlled at the Object level

1.3.2 Estimated Revenues

The budgeted financing sources, exclusive of fund balance available and reserve cancellations, expected to be received or accrued during the fiscal year to finance the budgeted appropriations. Refer to the County's Chart of Accounts Manual for the individual revenue source codes and the type of revenue to be recorded in each one.

1.3.3 Fund

A separate fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and equities or fund balances, and changes to those accounts, are recorded and segregated to carry on specific activities. Separate funds are normally only established when required by the State Constitution, State statute, Federal law, court order, other applicable laws, Federal or State regulations, or Board policy. For example, the County General Fund, Fund 100, is a fund comprising a number of subsidiary agencies, or departments. Other examples of separate County funds are the Road Fund No. 115, the Orange County Library Fund No. 120, and the Orange County Flood Control District Fund No. 400.

1.3.4 Agency

A separate budget unit within a fund that classifies a grouping of expenditure requirements into accounting or organizational units that are deemed necessary or desirable for financial and administrative control purposes. For example, the separate County departments within the County General Fund, Fund No. 100, are each budgeted in a separate agency code: Agency 003 for the Auditor-Controller, Agency 042 for the Health Care Agency, Agency 060 for the Sheriff-Coroner, etc. The fund/agency combination defines a unique budgetary unit within a fund. For example, Fund/Agency 100/003 is the Auditor-Controller within the General Fund.

This procedure only applies to transfers of appropriations or estimated revenues within a single individual fund/agency. For transfers of appropriations or estimated revenues between agencies in the same fund, refer to CAP No. A.2., Changes to Appropriations, Estimated Revenues, and Reserves.

2. PROCEDURE

2.1 Expense Budget Transfers

Transfers of appropriations between expenditure objects within a fund/agency are submitted on the Expense Budget Transfer form (See Exhibit I). The following information is required and must be completed on the form:

FUND and AGCY: Enter the Fund and Agency code from the Chart of Accounts Manual for each line item being decreased or increased.

ORG and ACTV: Enter the Organization and Activity code for each line item being decreased or increased.

ORG and ACTV codes should be verified using the Organization Index table (ORGN) or Organization table (ORG2) in the Advantage Financial System (AFNS). Organization codes beginning with "L" are always required for Land (Object Code 4100) and beginning with "P" are always required for Buildings and Improvements (Object Code 4200) to identify the particular capital project.

OBJ: Enter the Expenditure Object account code from the Chart of Accounts Manual for each line item being decreased or increased.

DECREASE and INCREASE: Enter the dollar amounts of decreases and increases in whole dollars only (no cents, not even ".00") for each line item being decreased or increased.

For all decreases, line item coding and budget amounts should be verified using the Expense Budget Summary Inquiry table (EESM) in AFNS. If any line item coding or budget amount on a budget transfer form is submitted which creates a deficit, none of the line items on the budget transfer form will be processed.

DESCRIPTION: Enter the description of the accounts for each line item being decreased or increased. Account descriptions are available from the County Chart of Accounts Manual. Descriptions for land or building projects or acquisitions should also include the name of the specific project or acquisition.

TOTALS: Enter the total for the "Decrease" and "Increase" column in whole dollars only (no cents, not even ".00"). Totals for the "Decrease" and "Increase" columns must equal each other.

EXPLANATION: State the reason for the budget transfer.

NAME OF ORIGINATING DEPARTMENT/AGENCY and AGENCY CODE: Enter the department/agency name and fund/agency code of the department that is submitting the budget transfer form.

NAME OF CONTACT PERSON, PHONE NUMBER, and EMAIL ADDRESS: Enter the name, phone number, and email address of a contact person in the budget section at the department/agency submitting the budget transfer form.

DEPARTMENT/AGENCY AUTHORIZED SIGNATURE and DATE: A person authorized to sign for budget transfers for the department/agency submitting the request must sign and date the budget transfer form.

CEO APPROVAL: If the Expense Budget Transfer includes a transfer from any Salaries and Benefits account (Object Codes 0100 through 0490), the form must be submitted to the CEO for approval. If approved by the CEO, the CEO then submits the form to the Auditor-Controller. If no transfer from Salaries and Benefits is included, submit the form directly to the Auditor-Controller General Ledger Unit.

The Expense Budget Transfer form (Exhibit I) cannot be used for transfers between different agencies in the same fund or for transfers from the Appropriation for Contingencies. These require Board approval. See CAP No. A.2., Changes to Appropriations, Estimated Revenues, and Reserves, for procedures for these types of transfers.

2.2 Revenue Budget Transfers

Transfers of estimated revenues between revenue source accounts within a fund/agency are submitted on the Revenue Budget Transfer form (See Exhibit II). The following information is required and must be completed on the form:

FUND and AGCY: Enter the Fund and Agency code from the Chart of Accounts Manual for each line item being decreased or increased.

ORG and ACTV: Enter the Organization and Activity code for each line item being decreased or increased.

ORG and ACTV codes should be verified using the Organization Index table (ORGN) or Organization table (ORG2) in AFNS.

REV SRCE and SUB REV: Enter the Revenue Source account code from the Chart of Accounts Manual and Sub-Revenue code for each line item being decreased or increased. The Sub-Revenue code should be verified using the Sub-Revenue Source table (SREV) in AFNS.

REVISED BUDGET: Use the Revenue Budget Summary Inquiry table (RSUM) in AFNS, "Current Amount" column for the revenue source code being decreased or increased. Enter the calculated amount after taking into account the decrease or increase being made, in whole dollars only (no cents, not even ".00") for each line item being decreased or increased.

DECREASE and INCREASE: Enter the dollar amounts of decreases and increases in whole dollars only (no cents, not even ".00") for each line item being decreased or increased.

For all decreases, line item coding and budget amounts should be verified using the Revenue Budget Summary Inquiry table (RSUM) in AFNS. If any line item coding or budget amount on a budget transfer form is submitted which creates a negative revenue budget amount, none of the line items on the budget transfer form will be processed.

DESCRIPTION: Enter the description of the accounts for each line item being decreased or increased. Account descriptions are available from the County Chart of Accounts Manual.

TOTALS: Enter the total for the "Revised Budget," "Decrease," and "Increase" column in whole dollars only (no cents, not even ".00"). Totals for the "Decrease" and "Increase" columns must equal each other.

EXPLANATION: State the reason for the budget transfer.

NAME OF ORIGINATING DEPARTMENT/AGENCY and AGENCY CODE: Enter the department/agency name and fund/agency code of the department that is submitting the budget transfer form.

NAME OF CONTACT PERSON, PHONE NUMBER, and EMAIL ADDRESS: Enter the name, phone number, and email address of a contact person in the budget section at the department/agency submitting the budget transfer form.

DEPARTMENT/AGENCY AUTHORIZED SIGNATURE and DATE: A person authorized to sign for budget transfers for the department/agency submitting the request must sign and date the budget transfer form.

Submit the completed and signed form to the Auditor-Controller General Ledger Unit.

The Revenue Budget Transfer form (Exhibit II) cannot be used for transfers between different agencies in the same fund. These require Board approval. See CAP No. A.2., Changes to Appropriations, Estimated Revenues, and Reserves, for procedures for these types of transfers.

Back to Top

Changes to Appropriations, Estimated Revenues, and Reserves

SUBJECT:

CHANGES TO APPROPRIATIONS, ESTIMATED REVENUES, AND RESERVES
NUMBER:

A.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 12/01

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

1.1 Purpose

1.2 Authority

1.3 Definitions

2. PROCEDURE

2.1 Budget Transfers

2.2 Appropriation of Unanticipated Financing

2.3 Budgeted and Unbudgeted Interfund Transfers

2.4 Appropriation of Reserve Cancellations/Decreases

2.5 Transfers of Appropriations Between General Fund Agencies

2.6 Appropriation for Contingencies

2.7 Increases to Reserves

EXHIBITS

Exhibit I - Expense Budget Transfer Form

Exhibit II - Revenue Budget Transfer Form

Exhibit III - Agenda Item Transmittal Form

SUBJECT:

CHANGES TO APPROPRIATIONS, ESTIMATED REVENUES, AND RESERVES
NUMBER:

A.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 12/01

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

The following states the County's policy pursuant to State law:

Any increases to appropriations and estimated revenues in the County budget must be submitted to the Board of Supervisors ("Board") and approved by a four-fifths vote of the Board.

Budget increases in one County fund/agency resulting from receipt of unbudgeted transfers of monies from another County fund/agency must also be approved by a four-fifths vote of the Board, and must be accompanied by a cash transfer from the transferring fund/agency to the receiving fund/agency.

Transfers of appropriations between fund/agencies in the County General Fund must be submitted to the Board and approved by a majority vote of the Board. Refer to County Accounting Procedure (CAP) No. A.1., Budget Transfers Within a Fund/Agency.

Transfers of appropriations within a fund/agency budget must be submitted to the Auditor-Controller for approval, with the exception of transfers from the salary and benefit account codes, which must also be approved by the County Executive Office (CEO). Refer to CAP No. A.1., Budget Transfers Within a Fund/Agency.

Any transfers from Contingency appropriations or from Fund Balance Reserve (Reserve) account codes (excluding the General Reserve, balance sheet reserves, and Reserve for Encumbrances - see Sections 2.7.3 and 2.7.4 below) must be submitted to the Board and approved by a four-fifths vote of the Board.

This policy and procedure applies only to those County funds governed by the County Budget Act, Government Code Sections 29000 through 29144. Funds governed by the County Budget Act include all those Board-governed County funds listed as being covered by appropriations control in the annual "Appropriations Control" letter sent out by the Auditor-Controller in April of each year.

1.1 Purpose

To ensure that changes to the County's budget are made in accordance with applicable State law and County policy.

1.2 Authority

1.2.1 State of California Government Code

Section 25252
Section 25252 allows the Board to establish and abolish funds as necessary for the transaction of the business of the County, and to transfer money from one fund to another, as the public interest requires. This section also allows the Board, by resolution, to authorize the County Auditor-Controller to perform these functions (also reference Section 1.2.2, Resolution No. 91-1143).

Section 29009
Section 29009 requires that in the Proposed and Final County Budgets, the budgetary requirements shall equal the available financing. In other words, the budget for each fund must be balanced.

Section 29084
Section 29084 allows the Board to establish in the budget an appropriation or appropriations for contingencies, by either one or a combination of the following methods:

Setting aside an amount within a fund not to exceed 15 percent of the total appropriations from the respective fund, exclusive of the amount of the contingency appropriation.

Setting aside an amount in a separate contingency fund, or in the County General Fund, not to exceed 15 percent of the total appropriations contained in the budget, exclusive of all appropriations for bonded debt service and all appropriations for contingencies. The total appropriations on which the 15 percent limitation is based must exclude the total appropriations for each fund having a contingency appropriation established under (a).

Section 29086
Section 29086 requires that the General Reserve, which is Balance Sheet Account Code 9850 in the County's General Ledger, for any particular fund can only be established, cancelled, increased, or decreased at the time of adopting the Final County Budget.

Section 29125
Section 29125 provides that the Board may make transfers and revisions with respect to the appropriations specified in the resolution of adoption of the budget, except with respect to transfers from the appropriation for contingencies (which are covered by Section 29130), by a majority action formally adopted by the Board. Section 29125 also allows the Board to designate a County official to approve transfers and revisions of appropriations within a budget unit, defined as a fund/agency in the County Budget (see Section 1.2.2, Resolution No. 97-415).

Section 29130
Section 29130 requires that any increases in appropriations resulting from transfers from appropriations for contingencies, amounts made available from Reserve account codes, and any unanticipated increases in available financing (such as revenues received in excess of budgeted amounts), must be approved by a four-fifths vote of the Board

1.2.2 Board of Supervisors' Resolutions

Resolution No. 97-415
Adopted pursuant to Government Code Section 29125, Board Resolution No. 97-415, dated September 16, 1997, delegates to the Auditor-Controller the power and authority to make transfers and revisions of appropriations within a budget unit, with the exception of transfers of appropriations from salary and benefit account codes, which must receive CEO approval. A budget unit is a discrete fund/agency code in the County Budget.

Resolution No. 91-1143
Adopted pursuant to Government Code Section 25252, Board Resolution No. 91-1143, dated October 1, 1991, authorizes the Auditor-Controller to establish and abolish funds/agencies, and to transfer money between funds/agencies in circumstances where both of the following conditions exist:

The Board has authority over the funds; and

The Board has provided for such transfers in the budget that is
applicable to the period in which the transfers are to be made.

Resolution No. 91-260A
Also adopted pursuant to Government Code Section 25252, Board Resolution No. 91-260A, dated March 19, 1991, authorizes the Auditor-Controller to transfer monies between various funds, as required in the Resolution of Issuance for each of the Mello-Roos Districts, the Trust Indentures for the Orange County Development Agency, and the Trust Indenture for each of the Certificate of Participation bond financing issues.

1.2.3 Accounting Standards and Procedures Manual

The State Controller's Manual, Accounting Standards and Procedures for Counties, provides definitions and specific accounting treatment for budgetary changes.

1.3 Definitions

1.3.1 Agency

A separate budget unit within a fund that classifies a grouping of expenditure requirements into accounting or organizational units that are deemed necessary or desirable for financial and administrative control purposes. For example, the separate County departments within the County General Fund, Fund No. 100, are each budgeted in a separate agency code: Agency 003 for the Auditor-Controller, Agency 042 for the Health Care Agency, Agency 060 for the Sheriff-Coroner, etc.

1.3.2 Appropriation for Contingencies

A budgetary provision representing a set-aside by the Board pursuant to Government Code Section 29084 to meet unforeseen expenditure requirements. An Appropriation for Contingencies is recorded in Expenditure Object Code (Object Code) 5200.

1.3.3 Appropriations

A legal authorization granted by the Board to make expenditures and to incur obligations for specific purposes, as provided for in the Board's annual adoption of the County Budget, and as changed thereafter by budget transfers and by changes to the Budget made by the Board. An appropriation is limited in amount and in the time it may be expended. Appropriations in the County Budget are controlled at the major object of expenditure, also called "category" of expenditure, which are:

Salaries and Employee Benefits (Object Codes 0100-0490).

Services and Supplies (Object Codes 0500-2890).

Other Charges (Object Codes 3000-3900).

Equipment (Object Code 4000).

Land, by Project (Object Code 4100, controlled by Organization Code)

Buildings and Improvements, by Project (Object Code 4200, controlled by Organization Code)

Other Financing Uses (Object Codes 4700-4809)

Residual Equity Transfers (Object Codes 5000-5009)

Contingencies (Object Code 5200)

Miscellaneous (Object Codes 5300-5500).

In addition, Operating Transfers Out (Object Codes 4800-4809) and Residual Equity Transfers Out (Object Codes 5000-5009) are unique as they are controlled by each Object Code rather than the object category.

1.3.4 Available Financing

The sum of all sources of funding that can be utilized to meet the budget requirements for a fund for the fiscal year. Available financing consists of:

Fund balance available (FBA), plus

Estimated revenues, plus

Reserve cancellations or decreases, plus

Mid-year cancellations of prior year encumbrances.

The total budgeted available financing must equal the total budgeted financing requirements, which consist of appropriations plus increases to reserves.

1.3.5 Budget Transfers

Transfers of appropriations or estimated revenues between different object codes or revenue source codes within a fund/agency. Refer to CAP No. A.1., Budget Transfers Within a Fund/Agency.

1.3.6 Encumbrances

Reserves against appropriations representing commitments made by the County to unperformed (executory) contracts (see Definition 1.3.11 below), purchase orders, and other obligations for receipt of goods and services. Encumbrances represent the estimated amount of expenditures ultimately to result if unperformed contracts and purchase orders in process are completed. Encumbrances are recorded when contracts and purchase orders are entered into, in order to ensure that sufficient appropriations will be available to pay vendors and contractors when the goods and services are actually received. Refer to CAP No. A.3., Encumbrances, for a detailed description of the encumbering process.

1.3.7 Estimated Revenues

The budgeted financing sources, exclusive of FBA and reserve cancellations, expected to be received or accrued during the fiscal year to finance the budgeted appropriations.

1.3.8 Fund

A separate fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and equities or fund balances, and changes to those accounts, are recorded and segregated to carry on specific activities. Separate funds are normally established only when required by the State Constitution, State statute, Federal law, court order, other applicable laws, Federal or State regulations, or Board policy. For example, the County General Fund, Fund 100, is a fund comprised of a number of subsidiary agencies, or departments. Other examples of separate County funds are the Road Fund No. 115, the Orange County Library Fund No. 120, and the Orange County Flood Control District Fund No. 400.

1.3.9 Fund Balance Available (FBA)

The unreserved, undesignated, unencumbered year-end carryover amount remaining in a fund that can be utilized as a financing source for the following year's budgeted appropriations. The fiscal year-end FBA carried over into the next budget year is generally equal to:

FBA from the beginning of the year

Plus: Revenues received and accrued during the year
Reserve cancellations
Encumbrance cancellations (current and prior year)

Less: Expenditures paid and accrued during the year
Encumbrances entered into during the year
Reserves increased or added during the year.

1.3.10 Reserve

An amount set aside in a fund for a specific purpose. A reserve is not available for financing budget requirements, and can only be made available for appropriation by a specific action of the Board by four-fifths vote, pursuant to Government Code Section 29130.

1.3.11 Reserve

An amount set aside in a fund for a specific purpose. A reserve is not available for financing budget requirements, and can only be made available for appropriation by a specific action of the Board by four-fifths vote, pursuant to Government Code Section 29130.

1.3.12 Unperformed (Executory) Contracts

A contract that has not yet been fully completed or performed, or a contract, the obligation (performance) of which relates to the future.

2. PROCEDURE

2.1 Budget Transfers

Budget transfers of appropriations within a fund/agency (i.e., within a distinct budget unit or department/agency) must be submitted to the Auditor-Controller on an Expense Budget Transfer Form (refer to Exhibit I). If a transfer is being made from any of the Salaries and Employee Benefits objects to any other expenditure category, the Expense Budget Transfer Form must be submitted to the CEO first for approval. Budget transfers of estimated revenues within a fund/agency must be submitted to the Auditor-Controller on a Revenue Budget Transfer Form (refer to Exhibit II).

Transfers of appropriations between agencies or from the Appropriation for Contingencies cannot be processed on an Expense Budget Transfer Form, and transfers of estimated revenues between agencies cannot be processed on the Revenue Budget Transfer Form.

Refer to CAP No. A.1., Budget Transfers Within a Fund/Agency, for more detail on completing and submitting the Expense Budget Transfer Form (Exhibit I) and the Revenue Budget Transfer Form (Exhibit II).

2.2 Appropriation of Unanticipated Financing

2.2.1 Appropriation of Unanticipated Revenue

If during the fiscal year a particular program or department/agency receives revenues in excess of its budgeted revenues, and if the department/agency desires to expend the excess revenues, and has no other appropriations available, then, with CEO approval the department/agency must either submit an Agenda Item Transmittal (AIT) Form (refer to Exhibit III) to the Clerk of the Board, requesting that the Board appropriate the unanticipated revenues, or submit the request to the CEO for inclusion in a Quarterly Budget Report. Unless there is an urgent need for the additional appropriations, these types of budget changes should generally be included in a CEO Quarterly Budget Report to the Board. At a minimum, the AIT, or request to the CEO, should contain the following information (in addition to the standard information required for an AIT):

A complete description of the unanticipated revenue source and the particular program or project which it is funding.

An explanation as to why the revenues are being received in excess of the budgeted estimate, and that no other appropriations are available to fund the new budgetary requirement.

Recommended Actions directing the Auditor-Controller to increase the estimated revenue in the appropriate revenue source codes and to increase the appropriations in the appropriate object codes, in accordance with Government Code Section 29130 with the following conditions:

The revenue source codes and object codes must be identified, including: Fund-Agency-Revenue Source and Sub-Revenue Code, Object Code, Activity and, if required, Organization Code.

Increases to appropriations in the Land Account (Object Code 4100) and the Buildings and Improvements Account (Object Code 4200) must also specify the Organization Code for the particular capital project.

The total of the recommended estimated revenue increases must always equal the total of the recommended appropriations increases.

The Recommended Actions must include language stating that Government Code Section 29130 requires a four-fifths vote of the Board.

Whenever possible, actions to appropriate unanticipated revenue should be included in one of the CEO's regular Quarterly Budget Reports to the Board.

2.2.2 Budget Changes Due to Actual Fund Balance Available in Excess of or Less Than Budget

The County's Final Budget is adopted each year at the end of June utilizing estimated FBAs for each County fund, because the actual FBAs will not be known until all year-end accruals are made and the books close in early August. In November each year, the CEO files the First Quarter Budget Report with the Board, which, among other budgetary actions, contains all budgetary changes necessary to balance all County funds to their FBAs. Before the First Quarter Budget Report is filed, the CEO contacts all departments which control funds outside the County General Fund (excluding Enterprise Funds and Internal Service Funds) to determine which expenditure, estimated revenue, or reserve account codes will be used to balance the financing requirements for each fund to actual FBA and final estimated revenues.

The Recommended Actions in the First Quarter Budget Report directing the Auditor-Controller to increase or decrease appropriations, estimated revenue, and/or reserve account codes to balance to final FBA must include the following information:

The Object Codes, Revenue Source and Sub-Revenue source codes, as well as required Organization and Activity codes, and/or Reserve account codes with appropriate Reporting Category code, must be identified.

Increases or decreases to appropriations in the Land Account (Object Code 4100) and the Buildings and Improvements Account (Object Code 4200) must also specify the Organization Code for the particular capital project.

The total of the recommended appropriations/estimated revenue/reserve increases or decreases for each fund must equal the total increase or decrease in FBA.

A statement that the appropriation increases and reserve increases must be approved by a four-fifths vote of the Board as required by Government Code Section 29130.

2.3 Budgeted and Unbudgeted Interfund Transfers

2.3.1 Budgeted Interfund Transfers

Budgeted interfund transfers may be processed at any time during the fiscal year, either by journal voucher or by a memo authorizing the Auditor-Controller to process a journal voucher to make the transfer. Appropriations for transfers between funds that are included in the County's Final Budget are shown in the Operating Transfers Out accounts (Object Codes 4800-4809) and the Residual Equity Transfers Out accounts (Object Codes 5000-5009) in each appropriate fund. Each fund receiving a transfer contains an equal amount of estimated revenue in the Operating Transfers In accounts (Revenue Source Codes 7810-7819) and Residual Equity Transfers In accounts (Revenue Source Codes 7900-7909).

2.3.2 Unbudgeted Interfund Transfers

The Board must approve interfund transfers not contained in the Budget, and any increases to budgeted interfund transfers in excess of the amounts contained in the Budget. The department responsible for the fund/agency that will be making the unbudgeted interfund transfer must submit an AIT to the Board, or a request to the CEO for inclusion in a Quarterly Budget Report, containing, in addition to the standard AIT requirements, the following information:

An explanation of the necessity for the unbudgeted interfund transfer, or transfer in excess of the budgeted amount, including the purpose for which the transferred funds will be expended.

Recommended Actions to direct the Auditor-Controller to make the following budgetary and transfer entries:

Decrease appropriations by the required amount in another specific object code of the transferring fund, and increase appropriations by the same amount in the appropriate Interfund Transfers Out or Residual Equity Transfers Out account code in the transferring fund. (This action provides the necessary appropriations to make the interfund transfer from the transferring fund.)

Make an Operating Transfer or Residual Equity Transfer, as appropriate, of cash from the transferring fund to the receiving fund, specifying the Transfer Out account code to be used in the transferring fund and the Transfer In account code to be used in the receiving fund. (This action actually move the funds, in cash, from the transferring fund to the receiving fund and records the corresponding expenditure in the transferring fund and revenue in the receiving fund.)

Increase estimated revenues in the appropriate Operating Transfer In or Residual Equity Transfer In account code in the receiving fund, and increase appropriations in an equal amount in whatever object codes are required to be increased in the receiving fund. (This action appropriates the unbudgeted Transfer In revenue in the receiving fund so that it can be expended.)

All of the account codes in the Recommended Actions Section of the AIT must be specified as to Fund, Agency, Object and Revenue Source and Sub-Revenue Codes, plus required Organization and Activity codes.

The appropriate 2-digit Sub-Object and Sub-Revenue Source Codes must be specified for the Transfer In and Transfer Out account codes (refer to the County of Orange Chart of Accounts Manual for details on coding Operating Transfers and Residual Equity Transfers).

The budgetary entries in the transferring and receiving funds must balance and the Transfers Out must equal the Transfers In.

A statement that the appropriations and estimated revenue increases must be approved by a four-fifths vote of the Board as required by Government Code Section 29130.

Whenever possible, unbudgeted interfund transfer actions should be included in one of the CEO's regular Quarterly Budget Reports to the Board.

2.3.3 Restrictions on Appropriation Transfers Between Funds

Government Code Sections 29130, 29125, and 29009 require that the transfer of appropriations from one County fund to another must be approved by the Board as described in Section 2.3.2 above. Appropriations may not be transferred between funds without Board approval for the following reasons:

A simple transfer of appropriations from one fund to another fund without the required interfund transfer does not provide a source of revenue or other financing to support the additional appropriations in the receiving fund.

A transfer of appropriations without the required interfund cash transfer leaves the receiving fund with no cash to make the necessary expenditures and results in a cash deficit in the receiving fund.

2.4 Appropriation of Reserve Cancellations/Decreases

2.4.1 Budgeted Reserve Cancellations/Decreases

Generally, cancellations or decreases of amounts in fund balance reserve account codes should only be requested as part of the budget process. The budgeted cancellation or decrease of an amount in a reserve account code provides additional financing for the appropriation requirements of the fund in which the reserve is cancelled or decreased. The Auditor-Controller records budgeted reserve cancellations and decreases in the budget/accounting system after the Board adopts the Final Budget.

2.4.2 Unbudgeted Reserve Cancellations/Decreases

Except for the General Reserve, Balance Sheet Account Code 9850, (see Section 2.4.3 below), in order to cancel or decrease a fund balance reserve mid-year, an AIT must be filed with the Board containing the following information (in addition to the standard AIT requirements):

A description of the reserve account code being cancelled or decreased, and the purpose for which the reserve was originally established.

An explanation of the necessity for making the reserve available for appropriation mid-year.

A description of the purpose for which the cancelled or decreased reserves will be used.

Recommended Actions to direct the Auditor-Controller to decrease or cancel the reserve account code by a specific amount, to increase FBA by the same amount, and to appropriate the increased financing in specific object codes, in accordance with Government Code Section 29130, with the following conditions:

The reserve account codes to be cancelled or decreased must be identified by Fund-Agency-Balance Sheet Account-Reporting Category, and the increased appropriations must be identified by Fund-Agency-Object Code, plus required Organization and Activity Codes.

The total of the increased appropriations in the object codes must equal the total of the reserve cancellations and decreases.

A statement that the appropriation increases must be approved by a four-fifths vote of the Board as required by Government Code Section 29130.

Whenever possible, unbudgeted reserve cancellation/decrease actions should be included in one of the CEO's regular Quarterly Budget Reports to the Board.

2.4.3 General Reserve Cancellations/Decreases

As provided in Government Code Section 29086, the General Reserve of each County fund, Balance Sheet Account Code 9850, can only be cancelled or decreased at the time of the adoption of the Final County Budget (except in the case of a legally declared emergency). Therefore, no mid-year changes are allowed to the General Reserve Account code of any County fund.

2.5 Transfers of Appropriations Between General Fund Agencies

2.5.1 Prior Approval by CEO

Requests for transfers of appropriations between agencies in the General Fund must be approved by the CEO before submission to the Board for approval. Transfers of appropriations between General Fund agencies will be approved by the CEO only if there are no unanticipated revenues or other sources of financing or other available appropriations in the requesting department's/agency's budget to fund the required appropriations.

2.5.2 Approval by Board

Once approval is obtained from the CEO, the department/agency must prepare an AIT for submittal to the Board, containing, in addition to the standard AIT requirements, the following:

A detailed description of the reason for the budget overrun being addressed by the transfer of appropriations from another agency.

An explanation that there are no unanticipated sources of financing to fund the required appropriation, and that there are no other available appropriations in the applicable agency to fund the budget overrun.

An explanation of why appropriations are available in the transferring agency, why the appropriations can be made available to the receiving agency, and why the transfer will not adversely impact the transferring agency's budget.

Recommended Actions directing the Auditor-Controller to decrease appropriations in the agency which is transferring appropriations, and to increase appropriations in the agency which is receiving the appropriations with the following conditions:

The object codes must be identified by Fund-Agency-Object Code, plus required Organization and Activity codes.

The total of the amounts of the increased appropriations must equal the total of the amounts of the decreased appropriations.

Whenever possible, transfers of appropriations between General Fund agencies should be included in one of the CEO's regular Quarterly Budget Reports to the Board.

Appropriations cannot be transferred from an agency within the General Fund to another County fund, unless approved by the Board as an unbudgeted interfund transfer as described in Section 2.3.2 above.

2.5.3 Transfers of Estimated Revenues Between General Fund Agencies

If for some reason there is a need to transfer budgeted estimated revenue amounts between agencies within the General Fund, for example, because responsibility for a particular revenue source is moved from one County agency to another due to a change in State law or regulation, the same procedures as specified in Sections 2.5.1 and 2.5.2 above should be followed. The specific Revenue Source and Sub-Revenue Source codings and amounts must be detailed, and the decreases in the transferring agency's estimated revenues must equal the increases in the transferee agency's estimated revenues. An explanation as to the reason for the estimated revenue transfer must be included on the AIT. Any associated appropriation transfers must also be included with the information specified in Section 2.5.2.

Whenever possible, transfers of estimated revenues between General Fund agencies should be included in one of the CEO's regular Quarterly Budget Reports to the Board.

Estimated revenues cannot be transferred from an agency within the General Fund to another County fund, unless approved by the Board as part of an unbudgeted interfund transfer as described in Section 2.3.2 above.

2.6 Appropriation for Contingencies

2.6.1 General Fund Appropriation for Contingencies

2.6.1.1 Prior Approval by CEO

All requests for a transfer of appropriations from the General Fund Appropriation for Contingencies (Object Code 5200) must receive prior approval from the CEO before being submitted to the Board. Transfers of appropriations from the General Fund Appropriation for Contingencies are only approved by the CEO as a last resort, and only if the requesting department:

Has no other unanticipated sources of financing to appropriate, and

Has no other appropriations within its own budget to cover the budget overrun, and

Has no appropriations available in another agency within the General Fund that it controls, to cover the budget overrun.

2.6.1.2 Approval by Board

After approval has been obtained from the CEO, the transfer from the General Fund Appropriation for Contingencies must be submitted to the Board on an AIT containing, in addition to the standard AIT requirements, the following:

A description of the budgetary requirement causing the need for a transfer from the Appropriation for Contingencies.

A detailed explanation of why other appropriations are not available to fund the budgetary requirement.

A statement that no sources of financing in excess of budget are available to be appropriated to meet the budgetary requirement.

A statement that no available appropriations in any other agency within the General Fund controlled by the department are available to fund the budget overrun.

Recommended Actions to direct the Auditor-Controller to decrease appropriations in General Fund Appropriation for Contingencies Account, Fund 100-Agency 099-Object Code 5200, and to increase appropriations in the appropriate agency object codes, in accordance with Government Code Section 29130 with the following conditions:

The object codes to be increased must be identified by Fund 100 -Agency Number-Object Code, with required Organization and Activity codes.

The total amount transferred from Contingency must equal the total of the increased appropriations in the specific object codes being increased.

The Recommended Actions must include language stating that Government Code Section 29130 requires a four-fifths vote of the Board.

Whenever possible, transfers of appropriations from the General Fund Appropriation for Contingencies should be included in one of the CEO's regular Quarterly Budget Reports to the Board.

General Fund Contingency Appropriations cannot be transferred to a fund outside the General Fund unless approved by the Board as an unbudgeted interfund transfer as described in Section 2.3.2 above.

2.6.2 Other Fund Contingencies

Transfers from the Appropriation for Contingencies, Object Code 5200, within any other County fund must also be submitted to the Board on an AIT and approved by a four-fifths vote, pursuant to Government Code Section 29130. The same information noted above in Section 2.6.1.2 for General Fund Contingency transfers must be contained on the AIT, except that the fund and agency codes will be the appropriate codes for the particular fund/agency for which the contingency transfer is being requested.

Whenever possible, transfers of appropriations from a fund's Appropriation for Contingencies should be included in one of the CEO's regular Quarterly Budget Reports to the Board.

An Appropriation for Contingencies in each County fund may only be utilized within that fund. It cannot be transferred to any other County fund.

2.7 Increases to Reserves

2.7.1 Budgeted Reserve Increases

Increases to reserves of fund balance are normally provided for in the annual County Budget at the request of the department/agency responsible for the fund in which a reserve is being increased. Increases to reserves should be included in the budget submittal to the CEO. The reserve increase must include the description and the Reporting Category number of the specific reserve being increased. After the Board adopts the Final Budget, the Auditor-Controller books the reserve increases into the appropriate General Ledger fund balance reserve account codes.

2.7.2 Unbudgeted Reserve Increases

Mid-year requests for increases to reserves must be pre-approved by the CEO, and should be included in one of the CEO's Quarterly Budget Reports to the Board, for specific approval by the Board. There must be a source of financing for the reserve increase, which can be:

Unanticipated revenues in excess of budgeted amounts.

Reduction to an expenditure appropriation.

Actions to increase reserves must include the following information:

Reasons for the increase to the reserve and the planned uses for the
reserve.

Description of the sources of financing for the reserve increase.

Recommended Actions directing the Auditor-Controller to:

Decrease specific Object Code appropriations by specified amounts, or increase specified Estimated Revenue Source and Sub-Revenue account codes by specified amounts. The required Organization and Activity codes must also be specified.

Increase specific Fund Balance Reserve account codes by specified amounts, identified by description, Balance Sheet Account Code, and Reporting Category Number.

The total of the amounts of decreased appropriations and/or increased estimated revenues must equal the total of reserve increases.

2.7.3 General Reserve

As provided in Government Code Section 29086, the General Reserve of each County fund, Balance Sheet Account Code 9850, can only be established or increased at the time of the adoption of the Final County Budget. Therefore, no mid-year changes are allowed to the General Reserve of any County fund

2.7.4 Balance Sheet Reserves

Reserves of fund balance are established to offset balance sheet account codes that represent assets not available to be appropriated and spent by a fund. For example, a fund that has loaned cash to another fund or to a third party on a long-term basis (longer than one fiscal year) must establish a reserve of fund balance to prevent that amount of cash from being appropriated and spent for another purpose. Examples of fund balance reserves to offset balance sheet account codes are:

Fund Balance Reserved for Debt Service (Balance Sheet Account
Code 9814).

Fund Balance Reserved for Loans (Balance Sheet Account Code 9816).

Fund Balance Reserved for Prepaid Costs/Expenses (Balance Sheet
Account Code 9818).

Fund Balance Reserved for Inventory of Materials and Supplies (Balance
Sheet Account Code 9819).

Fund Balance Reserved for Land and Improvements Held for
Resale (Balance Sheet Account Code 9823).

Fund Balance Reserved for Imprest Cash Funds (Balance Sheet
Account Code 9829).

Fund Balance Reserved for Encumbrances (Balance Sheet Account
Code 9900).

Refer to the County's Chart of Accounts Manual for further information and requirements on balance sheet account reserves.

These reserves are automatically booked each year by the Auditor-Controller to match the balances of the associated balance sheet account codes. No department/agency or Board action is required to change these reserve balances.

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Encumbrances

SUBJECT:

ENCUMBRANCES
NUMBER:

A.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS, AGENCIES, AND DISTRICTS

EFFECTIVE: 6/78
REVISED: 7/84, 12/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Commitments related to purchase orders, contracts, or obligations, which are chargeable to appropriations, shall have sufficient appropriations encumbered (reserved) to ensure appropriations are available to pay invoiced amounts.

1.1 Purpose

To establish a procedure for encumbering appropriations for purchase orders, contracts, and other commitments authorizing delivery of merchandise or rendering of services. An encumbrance system reduces the possibility of commitments being made in excess of budgeted appropriations due to the lag time between issuance of purchase orders, contracts, and other obligations, and the actual provision of services or goods and subsequent receipt of invoices and billings from the vendors and contractors.

1.2 Authority

1.2.1 State of California Government Code Section 26881

Authorizes the Auditor-Controller, upon order from the Board of Supervisors, to prescribe and exercise general supervision over the accounting forms and methods for all departments, agencies, and districts under the control of the Board of Supervisors.

1.2.2 Board of Supervisors' Resolution No. 82-162, dated February 2, 1982

Authorizes the Auditor-Controller to prescribe the accounting policies for departments, agencies, and districts under the control of the Board of Supervisors.

1.3 Definitions

1.3.1 Encumbrances

An anticipated expenditure in the form of purchase orders, contracts, and other commitments that are chargeable to an appropriation and for which part of the appropriation is reserved. The appropriation remains encumbered until payment is made, or the obligation expires, or cancellation occurs, at which time some or all of the encumbrance is reversed. An encumbrance is not an expenditure or a liability but merely a reserve of appropriations. Expenditures and/or liabilities are recorded when, and if, goods are actually provided or services are actually rendered.

1.3.2 Appropriations

The authorization by the Board of Supervisors (Board) to make expenditures and to incur obligations for specific purposes, as provided for in the Board's adoption of the County Budget, and as changed thereafter by budget transfers and changes to the budget made by the Board.

1.3.3 Unencumbered Balance of Appropriation

That portion of an appropriation not yet expended or encumbered. Any such balance remaining at the end of the fiscal year shall revert to the available balance of the fund from which appropriated.

1.3.4 Proprietary Funds

The enterprise and internal service funds established within the 280 through 299 series of fund numbers. These funds are treated differently than other funds for budgeting, accounting, and encumbering, as described in Section 2.3.

2. PROCEDURE

2.1 Encumbering Appropriations

2.1.1 One-Time Purchases

One-time Centralized Purchase Order documents, referred to as PC's, are always encumbered for the full amount of the contract obligation without regard to having multiple payment periods or scheduled delivery dates.

2.1.2 Renewable Price Agreements

Price Agreement documents, referred to as PA's, are not encumbered by themselves but use subordinate agreements called PG's. PG's are used by departments/agencies to encumber the maximum obligation that may occur over the following 12-month period. At the beginning of the next 12-month period, the remaining obligation is encumbered or an amount equal to an additional 12-month period is encumbered, depending on when the obligation expires. (For details on the types and examples of PA's, please refer to the County's Purchasing Training Manual.)

Certain exceptions are made for proprietary funds (see Section 2.3) and for Board-approved Social Services Agency and Health Care Agency contracts which are substantially offset by Federal and State revenues (see Section 2.4).

2.1.3 Real Property Acquisitions

Board-approved acquisitions of real property, such as eminent domain actions, are encumbered for the amount estimated by the Public Facilities and Resources Department and the County Executive Office/Real Estate Division.

2.2 Obligations Not Encumbered

2.2.1 Future Year's Obligations

Purchase orders/contracts that specify effective dates in a future fiscal year will not be encumbered until that fiscal year.

2.2.2 Other

Appropriations are not encumbered for:

Utilities,

Inventory items (Balance Sheet Account Code 8500), or

Any fund for which appropriation control is not maintained by the Auditor-Controller.

2.3 Encumbrances for Proprietary Funds

Enterprise and internal service funds need to match revenues and expenses on a full accrual basis in accordance with generally accepted accounting principles for proprietary funds. Therefore, contracts for monthly services are only encumbered through the end of the fiscal year in these funds. One-time purchase orders/contracts are encumbered for the entire amount. Standing purchase orders/contracts that are paid upon approval of invoice are encumbered for the full amount.

2.4 Encumbrances for Revenue-Reimbursed Contracts: Social Services
Agency and Health Care Agency

The Social Services Agency and the Health Care Agency award materially large Board-approved contracts every year for social and community services and health care programs that are substantially (at least 50 percent) reimbursed by Federal and State program revenues. Because revenues are based on expenditures, not encumbrances, unreimbursed year-end encumbrance carryovers cause variances to occur between budgeted and actual net County costs. For these types of large contracts, Board approval should include specific instructions for the Auditor-Controller to follow on how much to encumber for the current fiscal year ending June 30 and the following fiscal year(s) beginning July 1.

2.5 Encumbering Sequence

2.5.1 New Obligations

2.5.1.1 EPS Encumbrances

When a department/agency creates a purchase order document through the Extended Purchasing System (EPS), the department/agency is certifying that sufficient appropriations are available to defray the cost of the purchase. A PC or PG created through EPS is automatically encumbered. The encumbrance entry reduces the department's/agency's unencumbered balance of appropriations, and creates a reserve of fund balance in the fund in which the encumbrance is recorded.

2.5.1.2 Non-EPS Encumbrances

Certain Board approved contracts such as social service provider, community service provider, architect and engineer services, construction, consultant, and health care provider contracts not created through EPS are encumbered by the Auditor-Controller Claims Section or by agency accounting units where claims processing is decentralized.

2.5.2 Modifications

Contract alterations or changes to terms and conditions, clauses, or language are referred to as modifications. When contract obligations or account codings change, encumbrances may either be increased or decreased through EPS, or through the Auditor-Controller Claims Section/agency accounting unit, depending on the original agreement document used.

2.5.3 Encumbrances Reduced for Payments

As each payment is processed, an entry is made against the purchase order/contract, and an equal amount of encumbrance is reversed. At the end of the contract period, any remaining encumbrance balance is reversed when the Auditor-Controller Claims/agency accounting unit staff is advised by memo, or if noted on the final payment. Any encumbrance balance still remaining is carried over as a prior year encumbrance in the next fiscal year. It does not create new appropriations in the next fiscal year budget.

2.5.4 Encumbrances Reduced for Year-End Accruals

As a part of the closing process each fiscal year, the Auditor-Controller Claims Section/agency accounting unit inputs expenditure accrual transactions into the accounting system for purchase order/contract expenditure obligations greater than $5,000. Departments/agencies notify the Auditor-Controller Claims Section/agency accounting unit by memo of the amount to be accrued. As these expenditure accrual transactions are recorded, equal amounts of encumbrances are automatically reversed. The accrued amounts are then reversed in July and the related encumbrances are reestablished.

Department/agency accounting and fiscal staff may also use journal vouchers to accrue expenditures at year-end for non-encumbered contract/purchase orders. Journal voucher accruals do not reduce encumbrances and therefore should not be used to record accrual entries for encumbered contract/purchase orders.

2.5.5 Appropriations Encumbered at Fiscal Year-End

At fiscal year-end, unused open encumbrances are carried forward to the new fiscal year. These carried-forward encumbrances are referred to as prior year encumbrances in subsequent fiscal year accounting records. Appropriations are not carried forward or created in the new fiscal year for these prior year encumbrances. Also, prior year encumbrances or prior year expenditures do not impact the current year budget appropriations. Expenditures charged to these prior years' encumbered appropriations are referred to as prior year expenditures in the accounting system, and equal amounts of the prior year encumbrances are reversed.

2.5.6 Canceling an Encumbrance

2.5.6.1 Current Year Encumbrances

A current year encumbrance may be cancelled by expiration or cancellation of the purchase order/contract. This is accomplished by either the Deputy Purchasing Agent issuing a modification or by memo to the Auditor-Controller Claims Section/agency accounting unit. When this occurs, available unencumbered appropriations are increased and available for other expenditures/encumbrances of the department/agency.

2.5.6.2 Prior Year Encumbrances

Prior year encumbrances must be canceled by sending a memo to the Auditor-Controller Claims Section/agency accounting unit, specifying the purchase order or contract and requesting the cancellation of all or a portion of the unneeded outstanding encumbrance. Available unencumbered appropriations for the subsequent fiscal year are not increased by the cancellation of prior year encumbrances.

2.6 Annual Review of Prior Year Encumbrances

Prior year encumbrances reduce funds' available financing because reserves of fund balance are maintained for all encumbrances. Therefore, if prior years' encumbered purchase orders/contracts are no longer required they must be cancelled.

Near the end of each fiscal year, all departments/agencies must review prior year encumbrances to determine which are still needed and which can be cancelled. Departments/agencies must request cancellation of those encumbrances that are no longer necessary by sending a memo to the Auditor-Controller Claims Section/agency accounting unit, detailing the encumbrances to be cancelled by purchase order/contract number and dollar amount. When prior year encumbrances are cancelled, fund balance available is increased. Board approval is required to appropriate any fund balance increase resulting from cancelled prior year encumbrances.

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Billing for Materials & Services on Auditor-Controller Invoices

SUBJECT:

BILLING FOR MATERIALS & SERVICES ON AUDITOR-CONTROLLER INVOICES
NUMBER:

B.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS
GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 12/8/83
REVISED: 01/02

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose

1.2 Authority

1.3 Definitions

1.4 Forms

2. PROCEDURE

2.1 Billings

2.2 Correction of Invoiced Amounts

2.3 Amounts Less Than $25

2.4 Delinquent Invoices

EXHIBITS

Exhibit I - County of Orange Auditor-Controller Invoice Form No. 003 F8500-5.1

Exhibit II - County of Orange Auditor-Controller Credit Memo Form No. 003 F8500-256

Exhibit III - List of Exceptions

Exhibit IV - Invoice/Credit Memo Transmittal

Exhibit V - County Billing Policy (for Cities and Other Outside Contracting Entities)

SUBJECT:

BILLING FOR MATERIALS & SERVICES ON AUDITOR-CONTROLLER INVOICES
NUMBER:

B.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS
GOVERNED BY THE BOARD OF SUPERVISORS
EFFECTIVE:

12/8/83
REVISED: 01/02

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

All departments/agencies governed by the Board of Supervisors shall, whenever legally permissible, bill governmental agencies, private organizations, and individuals when the amount due for County-provided materials and/or services is $25 or more. This procedure does not address billings for loans, notes receivables, overpayments made by the County, or the recovery of assistance payments.

Invoices should be prepared in a timely manner, generally within 10 working days from the receipt of all billing information and should include all allowable overhead. Amounts due of less than $25 shall be paid at the time the materials and/or services are provided. If this is not practical, the amount shall be billed on letterhead or other form at the discretion of the department/agency (see Section 2.3 of this procedure).

Amounts due the County for certain categories of County-provided materials and/or services are excluded from this policy and procedure for various legal, administrative, and accounting reasons. These exceptions are listed in Exhibit III by department/agency, description of service, type of billing, and reason for exclusion from this policy and procedure. Only the exceptions listed in Exhibit III are excluded from this policy and procedure. Further exceptions must be approved by the Auditor-Controller.

All departments/agencies governed by the Board of Supervisors should review current policies regarding assessment of late charges or penalties, including the County Billing Policy for contracted services (see Exhibit V). Whenever applicable, billings should include the appropriate late charges, fees, or penalties in order to achieve full cost recovery.

1.1 Purpose

To formally record, on a timely basis, all obligations due the County, in order to provide better control over monies due, place into effect a positive uniform collection and follow-up procedure, ensure that the County's financial statements will properly reflect accounts receivables, properly record payments, and to comply with generally accepted accounting principles.

1.2 Authority

1.2.1 Board of Supervisors' Resolution No. 64-185, dated February 11, 1964

Authorizes and directs the Auditor-Controller to institute a system of centralized accounting and control of accounts receivable for all departments of the County of Orange.

1.2.2 Board of Supervisors' Resolution No. 82-162, dated February 2, 1982

Authorizes the Auditor-Controller to prescribe the accounting policies for departments, agencies, and districts under the control of the Board of Supervisors. Describes the duties and responsibilities of the Auditor-Controller, relating in part to the general supervision over the accounting forms and methods of keeping accounts.

1.2.3 Board of Supervisors' Minute Order Dated October 27, 1992

Describes the County Billing Policy for contracted County-provided materials and/or services to cities and other outside contracting entities. This policy and procedure includes provisions for late charges for delinquent payments, and for discounts for early payments.

1.3 Definitions

1.3.1 Billing

A written statement, usually itemized, of charges for materials provided and/or services rendered, on County of Orange Auditor-Controller Invoice Form No. 003 F8500-5.1 (Exhibit I). Billings may be accompanied by special forms required by the recipient or by the department/agency.

1.3.2 Credit Memo

A written statement on County of Orange Credit Memo Form (Credit Memo) No. 003 F8500-256 (Exhibit II), or other form, which must include proper signature authorization, as defined under Section 2.2.1 of this procedure, and which is used to reduce the amount of an unpaid billing.

1.3.3 Accounts Receivable Subsidiary Ledger

A listing, by fund/agency and by invoice number, of all open (unpaid) receivable accounts for each department/agency. Each subsidiary ledger for the invoices set up in the Auditor-Controller Accounts Receivable System should total to the dollar amount of Balance Sheet Account Codes 8200 (Accounts Receivable Miscellaneous - A-C) and/or 8470 (Due From Other Governmental Agencies- A-C), for each fund/agency. Balance Sheet Account Codes 8200 and 8470 are used only by the Auditor-Controller Collections Unit. Each subsidiary ledger for invoices not forwarded to the Collections Unit should total to the dollar amount of Balance Sheet Account Codes 8210 (Accounts Receivable, Miscellaneous) or 8480 (Due From Other Governmental Agencies), if recorded in the General Ledger.

1.4 Forms

1.4.1 Invoice Form

The County of Orange Auditor-Controller Invoice Form No. 003 F8500-5.1 is a standard 4-part form available from PFRD Publishing Services. (See Exhibit I.)

1.4.2 Special Invoice or Claim Forms

Invoice or claim forms required by the recipient or issued by the department/agency.

1.4.3 Credit Memo

County of Orange Credit Memo Form No. 003 F8500-256 is a standard 4-part form available from PFRD Publishing Services. (See Exhibit II.)

1.4.4 Invoice/Credit Memo Transmittal

The Invoice/Credit Memo Transmittal is utilized as a transfer of accountability and batch summary document for Invoice and Credit Memo copies submitted to the Auditor-Controller. (See Exhibit IV.)

2. PROCEDURE

2.1 Billings

2.1.1 Preparation of County of Orange Auditor-Controller Invoice Form

Billings prepared on the Auditor-Controller Invoice Form (Exhibit I) must be typed, written, or printed legibly for correct data entry, and must contain the following information:

Date prepared.

Full name and complete address and phone number of recipient of service and/or material.

Social Security Number of recipient (optional). Applicable if billed to an individual.

Indication if the recipient is a government agency (appropriate box marked with an "x").

Complete account coding within the designated spaces (refer to County of Orange Chart of Accounts):

Fund

Agency

Organization (if applicable)

Object Code, Revenue Source or Balance Sheet Account (whichever is applicable)

Sub-Object or Sub Revenue Source Code (if applicable)

Job Number (if applicable)

Reporting Category (if applicable)

Purchase Order Number (if applicable).

Name and phone number of preparer.

Quantity of items or number of hours, etc. being billed (if applicable).

Description of material provided and/or service rendered, including dates of service or shipment.

Price per unit (material) or per hour (service) (if applicable).

Total amount due.

2.1.2 Special Invoice or Claim Form(s)

Prepare any special invoice or claim form(s), which are required by the recipient or issued by your department/agency to supplement the Auditor-Controller Invoice. Include a copy of such forms with the Auditor-Controller copy of the Invoice (Exhibit I). (See Section 2.1.4.2.)

2.1.3 Preparation of Invoice/Credit Memo Transmittal

Prepare an Invoice/Credit Memo Transmittal (Exhibit IV) for each batch of invoice copies sent to the Auditor-Controller. Complete the form with the following information:

Date.

Name of department/agency.

Beginning and ending numbers of each sequence of invoices issued.

Total dollar amount of each sequence of invoices issued.

Grand total dollar amount of invoices in the batch.

Name and phone number of preparer.

Credit Memo amounts shown in brackets

2.1.4 Distribution of Invoices

2.1.4.1 Auditor-Controller Invoice Form

White original and blue carbon copy - mail to recipient.

Pink carbon copy - send to the Collections Unit along with the Invoice/Credit Memo Transmittal.

Gold carbon copy - retain for department/agency file.

2.1.4.2 Special Invoice or Claim Form(s)

Original - mail to recipient.

Copy - send to the Collections Unit attached to the pink copy of the Auditor-Controller Invoice Form.

Copy - retain for department/agency file.

2.1.5 Recording Accounts Receivable

The Collections Unit records each billing in the County accounting records by means of an automated or manual journal voucher. The total amount due on the invoice is recorded in the General Ledger to the corresponding fund/agency and Balance Sheet Account Code 8200 (Accounts Receivable, Miscellaneous - A-C) or 8470 (Due to Other Governmental Agencies - A-C) as a departmental/agency account receivable.

2.1.6 Review of Accounts Receivable

A copy of each department's/agency's monthly subsidiary accounts receivable ledger is distributed each month by the Collections Unit.

Each department should reconcile its own records to the Auditor-Controller Accounts Receivable Subsidiary Ledger at least once each month to check for any errors and update outstanding balances. Notify the Collections Unit in writing of necessary corrections so that they may make appropriate adjustments.

2.1.7 Coding of Payments Received on Accounts Receivable

Payments on Auditor-Controller Invoices should be received at the Collections Unit. However, if payments are received at the originating department, then the deposit order for these payments should be coded to Balance Sheet Account Code 8200 (Accounts Receivable-Miscellaneous - A-C) or to 8470 (Due to Other Governmental Agencies - A-C). Include the invoice number as a reference. Do not code payments received on invoiced accounts to a revenue source code, or the invoice will remain open and unpaid on the Auditor-Controller's records, and collection actions will be initiated against the recipient. Contact the Collections Unit if any questions arise concerning proper coding of payments on the Invoices.

2.2 Correction of Invoiced Amounts

2.2.1 Correction of Overbilled Amounts

To correct an amount billed in excess of the amount actually due, prepare a Credit Memo or other form to decrease the amount originally billed (applies only to outstanding invoices). The Credit Memo must contain the following information:

Date prepared.

Name and address of recipient.

Account coding.

Number of the invoice being corrected.

Reason for the adjustment.

Amount of the credit.

Signature of the department accounting manager or similar position who manages the invoicing process. This may be delegated by submitting an authorized signature list to the Accounts Receivable Manager.

Distribute the Credit Memo copies as follows:

Original - mail to the recipient, unless the recipient does not require a credit memo, as in the case of some State-funded programs.

Auditor-Controller copies - send to the Collections Unit with an Invoice/Credit Memo Transmittal Form.

Departmental copy - retain for departmental/agency file.

2.2.2 Correction of Underbilled Amounts

To correct an amount billed which is less than the amount actually due, prepare a Credit Memo or other form canceling the total amount of the original billing. Issue a new invoice for the correct amount, following the procedures in Section 2.1 of this policy and procedure.

2.2.3 Invoice/Credit Memo Transmittal

Prepare an Invoice/Credit Memo Transmittal Form (see Exhibit IV) as described in Section 2.1.3 for each credit memo copy or batch of credit memo copies submitted to the Auditor-Controller. Show the dollar amount on the Transmittal Form as a credit amount in brackets.

2.3 Amounts Less than $25

Collect amounts due to the County of less than $25 at the time services are rendered or materials are provided. No invoices are to be prepared for amounts due of less than $25, because the cost of invoice processing exceeds the amount billed.

If it is not administratively practical to require payment at the time services are rendered or materials are provided, at the discretion of the department/agency, amounts less than $25 may be billed on department/agency letterhead or other form. The letterhead or form should contain the following information:

Name of department/agency.

Description and date materials and/or services provided.

Dollar amount due.

Account coding.

Give the form to the recipient to be mailed in with his or her payment. Maintain a photocopy, and if not paid in thirty (30) days, follow up with a second request. If the amount due is not paid after the second request, submit an Application for Discharge from Accountability to the Auditor-Controller, as described in County Accounting Procedure No. B.3. - Discharge of Accountability for Collections. Do not send a copy of the letterhead or other form to the Auditor-Controller. Because of the cost of processing, accounts less than $25 are not recorded as accounts receivable in the General Ledger.

2.4 Delinquent Invoices

The departmental/agency accounting unit refers invoices that are not paid within thirty (30) days to the Collections Unit. Collection efforts, including mailing of collection letters, telephone contact, skip-tracing procedures, and filing court actions, are pursued by the Collections Unit depending upon the amount of the invoice.

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Billing Rates and Indirect Costs

SUBJECT:

BILLING RATES AND INDIRECT COSTS
NUMBER:

B.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE:

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose 1

1.2 Authority 2

1.3 Definitions 3

2. PROCEDURE

2.1 Review Controlling Statutes, Agreements, and Regulations 8

2.2 Determine the Purpose of Billing Rate or Indirect Cost 8

2.3 Consistency 8

2.4 Select an Appropriate Allocation Base 9

2.5 Determine Timing vs. Sources of Information 9

2.6 Calculations of Billing Rates and of Indirect Costs 10

2.7 Calculation of Billing Rate 14

2.8 Default Indirect Cost Rate 14

2.9 Updating Indirect Costs, Fees, and Rates 14

2.10 Reviews of Indirect Costs 14

2.11 Record Keeping Requirements for Specific Cost Elements 15

2.12 Retention of Records 15

2.13 Additional Guidance 15

EXHIBITS

Exhibit I Departmental Indirect Cost Rate Calculation

Exhibit II Billing Rate Calculation

SUBJECT:

BILLING RATES AND INDIRECT COSTS
NUMBER:

B.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE:

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

County policy for charging the costs of County services to outside agencies, businesses, and individuals, and other County funds, is for full cost recovery whenever possible. This necessitates that departments'/agencies' billings include appropriate County and department/agency indirect costs.

1.1 Purpose

The purpose of this procedure is to provide basic guidelines for calculating department billing rates and indirect costs. If any provisions of this procedure are in conflict with applicable state/federal regulations those other regulations govern.

1.2 Authority

1.2.1 Federal Office of Management and Budget (OMB) Circular A-87, Cost
Principles for State, Local, and Indian Tribal Governments, (revised 1995;
amended 1997)

A-87 is the primary regulation for determining indirect costs chargeable to federal and state awards.

1.2.2 Federal Department of Health and Human Services (DHHS) publication
ASMB C-10 Implementation Guide for OMB Circular A-87 (revised
1997; formerly OASC-10)

ASMB C-10 amplifies and comments on the provisions of A-87. It provides general guidelines for determining direct and indirect costs applicable to federal programs and for preparing and submitting cost allocation plans.

1.2.3 State Controller's Handbook of Cost Plan Procedures for California Counties

The Handbook supplements A-87 and ASMB C-10 and provides guidance that is specific to California counties.

1.2.4 Accounting Standards and Procedures Manual

The State Controller's Accounting Standards and Procedures for Counties provides generally accepted accounting principles and procedures.

1.2.5 State of California Government Code Section 51350

Authorizes counties to charge cities for costs incurred in providing services that are contracted or authorized by law.

1.2.6 State of California Government Code Sections 54985 et al.

Authorize counties to charge fees to recover the costs of providing services.

1.2.7 Board of Supervisors Resolution No. 68-566, dated May 28, 1968

Authorizes the Auditor-Controller to compute, or review and approve, all billing rates charged by County departments and districts, and requires inclusion of both departmental and general overhead factors when computing costs and determining charges for services.

1.2.8 Board of Supervisors Resolution No. 77-346, dated March 8, 1977

Clarifies the policies and procedures for including indirect costs in grant applications.

1.2.9 Board of Supervisors Resolution No. 77-1194, dated July 19, 1977

Established policy of charging General Fund overhead costs to specific districts and funds.

1.2.10 Board of Supervisors Resolution No. No. 77-1983, dated Dec. 20, 1977

Established policy of charging General Fund overhead costs to special districts & County service areas governed by the Board of Supervisors.

1.3 Definitions

Following are definitions of terms used in this procedure.

1.3.1 Base

When allocating costs, calculating an indirect cost rate, or determining fees, costs are divided by an appropriate factor that is referred to as the base. Allocations and fees usually have bases related to the unit of work processed (e.g., one document), or the increment of service time (e.g., productive hour), or the use of an item (e.g., miles driven, square footage occupied, machine hours used). Indirect cost rates usually have a base of salaries or salaries and employee benefits (S&EB).

1.3.2 Billing Rates

Billing rates comprise direct and indirect costs of providing a product or service divided by the unit of that product or service (e.g., service hour, completion of a specified service, unit of product provided).

1.3.3 Direct Costs

Costs that can readily be identified with (i.e., tied to, traced to) specific functions, programs, jobs, or activities. Examples of direct costs include S&EB of program staff, expenditures incurred specifically to carry out a program, and charges through the Job Cost Accounting System to a billable work assignment.

1.3.4 Future Costs

Costs associated with, or attributable to, current services that will not be paid until a future period. If applicable, these costs should be determined and a portion of them included in current, indirect cost calculations. As an example, closure costs for County landfills must be estimated and included in current indirect costs. Other, possible future costs could be: extraordinary maintenance costs, allowances for defaults on collections, potential liability/damage claims, or estimated costs for statutory/regulatory changes. Future costs can be diverse; therefore, take time to consider what they might be and whether they should be built into current indirect cost calculations. The primary consideration is whether costs that will be paid in the future are attributable to current operations or service recipients.

1.3.5 Indirect Costs

Costs incurred for common or joint purposes that benefit most of a department's/agency's operations and that cannot be directly associated with particular operations without unreasonably excessive efforts. Indirect costs may comprise one or more of the following components: (1) indirect costs of the department/agency; (2) indirect costs of the department's/agency's divisions or other organizational units; and (3) County General support service costs as determined by the County Wide Cost Allocation Plan (CWCAP).

When indirect costs are recovered through an agreement between the County and another entity, or a state/federally funded program, they may be limited by the agreement or by what state/federal agencies allow. See specific agreements or program reimbursement guidelines.

1.3.5.1 County Wide Cost Allocation Plan (CWCAP)

CWCAP (also referred to as the "cost plan") is an annual allocation of the indirect costs of building and equipment depreciation and of County General Fund support services to those County departments, agencies, and funds that receive the benefits of those fixed assets and services. CWCAP allocates costs using bases (e.g., direct billings, hours paid, checks processed, expenditures) that correlate with the benefits/services received.

Annual CWCAP allocations are based on service departments'/agencies' actual costs from two years prior (e.g., FY 2002-03 CWCAP is based upon FY 2000-01 actual costs). Because support departments often direct bill other departments/agencies for services provided, CWCAP reduces total cost allocations for direct billed amounts.

Although CWCAP allocates costs to the departments/ agencies within the County General Fund, the costs are not charged to them; only costs allocated to funds outside the County General Fund are charged ("debt service" and "agency" fund types are not charged). CWCAP allocations of building and equipment depreciation costs are not charged to funds unless the assets were paid for by the County General Fund.

CWCAP costs allocated to a department/agency, whether charged or not, are indirect costs to that department/agency. Departments/agencies should include these costs when determining their fees and billing rates.

Auditor-Controller Cost Studies prepares CWCAP each fiscal year for the upcoming fiscal year. For information related to CWCAP contact staff in that unit.

1.3.5.2 Department-wide and Division/Program-level Indirect Costs

Departments have indirect costs (e.g., administration and support) which benefit their entire organization. Individual divisions/programs within departments may have their own indirect costs (e.g., managers and supervisors), which may need to be determined and recovered.

Often only department-wide indirect costs need to be determined. Sometimes division/program-level indirect costs must be determined if they support a program but cannot be recovered as direct costs of that program.

1.3.5.3 Indirect Cost Rate (Percentage)

An indirect cost rate refers to indirect costs divided by an appropriate base (typically salaries or S&EB).

1.3.5.4 Indirect Cost Rate Proposals (ICRPs)

ICRPs are a specific form of departmental indirect cost rate calculation. They are addressed by A-87, Attachment E and must conform to state/federal regulations, terminology, and preparation methodologies. An ICRP rate is stated as a percentage that represents the ratio of total department/ agency indirect costs and CWCAP costs to a base (e.g., salaries, S&EB). A department/agency can apply that percentage to base amounts (e.g., salaries) of functions, programs, or activities to determine its indirect costs.

For more information about ICRPs, see A-87, Attachment E, or contact Auditor-Controller Cost Studies.

1.3.5.5 Overhead

The term overhead is not used elsewhere in this procedure. Although it is a commonly used term, it sometimes refers to an entity's indirect costs, and it sometimes refers only to indirect, fixed costs (e.g., facility costs).

1.3.6 Labor Burden

This is a combination of the costs of employees' non-productive time and fringe benefits (e.g., insurance, retirement) that is typically calculated as a percentage of base pay and is applied to employees' hourly pay rates. It is often used as a factor in the Job Cost Accounting System to charge appropriate amounts of labor burden costs whenever employees charge direct hours to jobs. Inclusion of a labor burden factor helps recover costs of employees' non-productive time and fringe benefits.

1.3.7 Organizational Unit (Organizational Level)

As used in this procedure, the term organizational unit refers to the County Accounting & Personnel System (CAPS) term for organizational unit designations within a fund/agency.

1.3.8 Revenue (Credit) Offsets

These are revenues or credits that reduce/offset the costs of providing a product or service. These receipts, or reductions of expenditures, reduce or offset cost items allocable to billed programs/activities. Examples of such transactions include purchase discounts, rebates, allowances, recoveries, indemnities on losses, insurance refunds, gains on a sale of fixed assets, and adjustments resulting from overpayments or erroneous charges. To the extent that credits accruing to, or received by, a department/agency relate to allowable program/activity costs, a proportionate share of the credit must be utilized as a cost reduction to the program/activity. For state/federal awards this cost reduction is required by A-87.

1.3.9 Roll Forward (Carry Forward)

A-87 requires that CWCAP contain roll forward calculations for all departments (excluding the support departments being allocated). County departments with federally funded programs (e.g., SSA) must use these roll forward amounts. Other County departments generally do not use roll forward amounts, even though the amounts are shown for them. Roll forward amounts represent an adjustment of the costs used in CWCAP two fiscal years previous. The earlier year's CWCAP costs were estimates for that year. Two years later we have actual costs. The differences between the estimated cost allocations and the actual cost allocations are roll forward amounts.

1.3.10 Time/Hours

Following are definitions of different units of employee time (hours). When calculating hourly fees and rates, an appropriate time base must be used.

1.3.10.1 Non-Productive Time

An employee's total paid time includes a combination of productive (see 1.3.10.3) and non-productive time. Non-productive time is non-work time and includes:

paid time away from the job, of which the major types are: vacations, sick leave, paid holidays, compensatory time off, jury duty;

paid time at work not directly performing a department's/ agency's tasks/operations (e.g., training and break time).

Properly calculating total non-productive time provides the basis for calculating productive time and hourly rates based upon productive time.

Employees often include their break time in the time they charge to work assignments. If break time is not charged directly to work assignments, and if it is separately listed on employees' time sheets, then it should be included as a component of non-productive time.

1.3.10.2 Overtime Hours

Hours worked in excess of regular straight-time hours. Overtime hours should be billed at different rates than regular hours. Consequently, it may be necessary to determine incremental cost adjustments for overtime work. Overtime compensation usually entails higher hourly pay offset by lower benefit costs; these compensation differences can be used to calculate an adjustment to basic hourly billing rates.

1.3.10.3 Productive Time

Productive time is on-the-job work time. Productive time is usually calculated by deducting non-productive time (see 1.3.10.1) from total time. Productive time is used as a base when determining productive hourly rates.

CAPS report HR67A10 provides productive and non-productive hours and cost information. The report is calculated from payroll; therefore, it does not show departments'/agencies' internal non-productive time, such as break time and training time.

If actual productive hours cannot be determined in a cost effective manner, the State Controller generally allows (for state funded/mandated programs) the use of a default of 1,800 productive annual hours based upon a total of 2,080 annual hours.

1.3.10.4 Standard Times (Measured Clock Times to Perform Services)

These are standard times needed to perform tasks, and they are sometimes used to calculate fees for performing a task (e.g., processing a document). Under-recovery of costs may occur when using fees based upon standard times if the rates are calculated using bases of total hours (e.g., 2,080 hours/year) or productive hours. When developing billing rates using standard times, a position's costs should be spread over the hours charged to work assignments (see 1.3.10.5). Under-recovery may also occur if standard times are not designed to recover non-task times such as wait time (e.g., wait time between serving customers), filing, or responding to inquiries.

1.3.10.5 Time Charged to Work Assignments

Time charged to work assignments represents time that employees charge to their primary work assignments, whether billed or not, and generally excludes their indirect work such as record keeping, maintenance, filing, and training. It will usually be less than productive hours; consequently, it will result in higher hourly rates. If a significant portion of productive time is not charged to work assignments, then a base of time charged to work assignments may be more appropriate than productive time for recovering costs. This distinction is important when deciding on an appropriate base for a billing rate. See the example in Exhibit II attached to this Procedure, which emphasizes the differing results from different time bases.

1.3.10.6 Total Hours

Total hours, such as 2,080 hours/year may be an appropriate base for calculating a full year's S&EB costs. It may also be appropriate when billing a percentage of a position's costs. It is usually an inappropriate base for calculating an hourly billing rate.

2. PROCEDURE

2.1 Review Controlling Statutes, Agreements, and Regulations

Review statutes, agreements, and regulations that govern the specific billing rates or indirect costs. This procedure cites only general statutes and regulations; often, other rules apply (e.g., funding agency's claiming instructions, grant guidelines). If rates or fees are for a funded program, identify any claiming limitations, calculation methodologies, and unallowable costs specified by the agreement or claiming guidelines.

2.2 Determine the Purpose of Billing Rate or Indirect Cost

Before preparing a billing rate or an indirect cost amount or rate, clearly determine the intended purpose/use (e.g., bill other departments, include in a grant claim, charge public for costs of a service) and the type of result that will be needed (e.g., amount/hour, amount/product, percentage rate). To help clarify the purpose, consider the following:

What costs are to be recovered (i.e., costs of an entire organization or costs for particular services/personnel)?

Do some customer groups incur different costs that should be billed differently?

How will billings be done?

Will there be one or multiple billing rates/methodologies?

What product or service unit will be billed (e.g., one photocopied sheet or one service hour)?

What cost base will be used (e.g., salaries, S&EB, productive S&EB, assignment hours)? Calculations can be directed toward the desired unit of measure.

Does the department/agency want a single, combined indirect cost rate for all of its units? Regulations permit a single, overall rate if operations are similar in nature, and if units' individual indirect cost rates would not be materially different.

Are multiple rates needed because of diverse operations that have widely varying indirect costs among divisions, organizations, or programs? If so, departments/agencies may need to calculate indirect costs at the division or organization level.

2.3 Consistency

If a department calculates multiple rates or fees it must treat costs consistently for the different calculations. The same costs cannot be indirect costs for one rate/fee and direct costs in another rate/fee calculation. For example Accounting Assistants cannot be 100 percent indirect costs when calculating one rate and direct costs when calculating another rate. However, a cost element (e.g., Accounting Assistants' S&EB) may be split into direct and indirect components, which are allocated differently.

2.4 Select an Appropriate Allocation Base

If a rate is being calculated, select an allocation base that corresponds with how the rate will be used. Depending on the need, rates may include all costs (i.e., both direct and indirect costs), or they may be limited to specific components. Fees will generally include all costs and use an allocation base that is the unit of product or hour of service that will be charged. When the rate is an indirect cost rate, the allocation base will generally be either salaries or S&EB.

2.5 Determine Timing vs. Sources of Information

When cost studies are prepared after a period to which they will apply that fiscal year's actual cost information can be used. For example, state-mandated cost ICRP studies are prepared after the end of the fiscal year to which they will apply. Refer to County Accounting Procedure (CAP) No. B.5, State-Mandated Costs and Claims for Reimbursement for more information of state-mandated cost claims.

Often studies are prepared before or during the period to which they will apply, and the costs will be either actual costs from a previous period or estimated costs (e.g., budgeted amounts) for the period of study.

2.6 Calculations of Billing Rates and of Indirect Costs

These steps are to aid in calculating billing rates and/or indirect costs/rates applicable to services and products. Many of the steps apply both to billing rates and to indirect costs. Indirect costs are just one component of billing rates. The primary components of most billing rates are the direct costs associated with the product or service.

2.6.1 Determine Costs

Regardless of how costs are classified and distributed, account for all costs, including unallowable costs. Expenditures (individually and in total) must agree to supporting financial source documentation (e.g., CAPS accounting reports such as Expenditure Budget to Actual reports and Job Cost Accounting reports). Itemizing and grouping costs should usually be done to aid referencing back to original source documentation and to associate costs with a funding entity's required claiming categories. If necessary, obtain organization level expenditure data (e.g., level 01, 02, 03) from CAPS to identify costs for a particular function, program, or activity.

2.6.2 Identify Credits and Revenue Offsets

Identify any rebates, refunds, recoveries, credits, or carry-forward adjustments that were received or accrued. Deduct amounts that represent credits/offsets to costs.

2.6.3 Categorize Costs

Once all costs have been listed, sort them into categories of unallowable costs, allowable indirect costs, and allowable direct costs.

2.6.3.1 Determine Unallowable Costs

Review costs for allowability under applicable regulations. Allowable costs must be necessary and reasonable. Unallowable costs must be identified and excluded. Regulations cited in section 1.2, above, provide guidance on costs that are allowable, unallowable, or allowable under specified conditions.

Below is a partial list of the most common allowable/ unallowable expenses according to A-87, Attachment B. Even if unallowed by a federal program, some costs may be includable when determining rates or fees that will be charged to others (e.g., landfill fee, permit fee).

Allowable Costs:

Accounting

Communications

Depr./use allowances

Materials and supplies

Personnel services

Purchasing

Auditing services

Fringe benefits

Maintenance and repair

Personnel administration

Printing and reproduction

Training and education

Unallowable Costs:

Bad debts (cannot be charged to the federal government unless provided for in the applicable federal regulations)

Legislative expenses

Fund raising

Entertainment

Lobbying

Public relations

Contingencies

If unallowable costs are base unit costs, they must receive an allocated share of indirect costs. For example, costs of issuing bonds are unallowable; nevertheless, a share of indirect costs must be allocated to staff working on bond issuance activities.

Costs Allowable Under Certain Circumstances (see *, below):

Some interest and other financial costs (see A-87)

Memberships, subscriptions, and professional activities

Reference materials

Meetings and conferences

* According to A-87, the above costs may be allowable provided: (1) benefits received are related to the function, program, or activity; (2) the cost is reasonable relative to the value of the service benefit received; and (3) the department/agency does not devote a substantial part of its activities to influencing legislation. Whenever allowability is in doubt, discuss with the funding agency and obtain specific advance approval.

2.6.3.2 Categorize Direct and Indirect Costs

Group department and County direct and indirect costs. Exclude items from indirect costs if they have been, or will be, claimed as direct costs. For example, some programs receive funding to reimburse the costs of fixed asset purchases; if so, they must ensure that corresponding portions of their fixed assets' depreciation are excluded from CWCAP costs.

Personnel Costs: Sort all positions into direct and indirect categories. Some positions may have portions of their time in both categories. An organization chart is usually helpful when determining whether positions are direct or indirect. Directors, assistant directors, division managers, administrative staff, secretaries, clerks, systems/computer support personnel, receptionists, analysts, accounting staff, and technicians should be considered when identifying indirect positions since most of these support more than one function.

Services and Supplies Costs: Examine expenditure line items and determine whether they benefit one program (direct) or multiple cost objectives (indirect). Costs such as telephone, office supplies, and office equipment maintenance are typically treated as indirect. Some costs may be direct with respect to one department, but indirect with respect to another; classification depends on the particular department/agency and the type of activity.

CWCAP Costs: The Auditor-Controller allocates CWCAP costs (see section 1.3.5.1) to most departments/agencies at the fund-agency level, not at individual organization levels. If an indirect cost rate is being calculated for the entire department/agency, include the entire CWCAP allocation to the agency (generally excluding roll forward). Use the CWCAP that is for the same year as the indirect cost rate.

2.6.4 Allocate Allowable Indirect Costs

Developing a single indirect cost rate for an entire department/agency is the easiest option and entails dividing all indirect costs by a single base. If usage of indirect support is reasonably equal among units, indirect costs may be uniformly allocated to all organizational units.

When some organizational units use significantly more or less resources than others, greater or lesser amounts of indirect costs should be allocated to them. Developing multiple indirect rates for a department/agency requires allocating indirect costs to the department's/agency's organizational units. Methods of allocation depend on how similar (or dissimilar) units' operations are and how they share indirect resources.

2.6.4.1 Single Rate for Entire Department

When a County department/agency has only one major function, program, or activity, or when all of its major functions, programs, or activities benefit from allowable indirect costs to approximately the same degree, a single rate for the entire department/agency may be prepared. Allowable indirect costs are divided by the selected cost base (e.g., salaries, S&EB).

2.6.4.2 Multiple Rates for Department's Functions

Departments/agencies that have several major functions, programs, or activities that benefit, in widely varying degrees, from its allowable indirect costs may have functional indirect cost rates that would be significantly different from one another. If that appears to be the case, cost rates will need to be determined for each major function. Group indirect costs into functional cost pools (e.g., general administration, divisional administration, building occupancy) that have similar characteristics. Then, allocate each cost pool among benefiting functions, programs, or activities by means of bases that best reflect the relative benefits received. When doing this, similar groups of programs may be combined.

Many cost factors associated with a function, program, or activity may be adaptable for use as allocation bases provided (1) they can readily be expressed in terms of dollars or other quantitative measures (e.g., total direct costs, direct salaries, staff hours applied, square feet used, hours of usage, number of documents processed, population served, etc.), and (2) they are common to the benefited functions. For other bases for cost distribution refer to ASMB C-10, Appendix 3.

It may also be necessary to allocate CWCAP among the department's/agency's individual organizations. If so, use a reasonable allocation base for each CWCAP line item (e.g., allocate building depreciation based upon square footage or employee counts; allocate equipment depreciation based upon AC42 depreciation details or equipment expenditures; allocate A-C Payroll costs based upon hours paid). If some organizations receive significantly more or less central support than other organizations, they should also receive relatively greater or lesser allocations of CWCAP. Re-allocations should distribute CWCAP costs in proportion to the benefits the organizations receive. For example, County Counsel provides outstationed attorney staff to John Wayne Airport and when calculating County Counsel hourly billing rates the building depreciation portion of County Counsel's CWCAP is re-allocated with none directly allocated to outstationed staff.

2.6.5 Calculate an Indirect Cost Rate

Compute an indirect cost rate by dividing total remaining indirect costs by the direct cost base selected for distribution of the indirect costs. In most cases, the direct base is either direct salaries or direct S&EB. However, other bases, such as total direct costs less capital expenditures, may be used when they can be demonstrated to be more equitable. See Exhibit I for a simplified example of a departmental indirect cost rate calculation.

2.7 Calculation of Billing Rate

A billing rate can be determined by combining direct and indirect costs and dividing them by the unit of service. See Exhibit II for a simplified example of a billing rate calculation.

2.8 Default Indirect Cost Rate

Some state/federal programs allow an indirect cost rate (encompassing both CWCAP and department indirect costs) of 10 percent instead of preparing an indirect cost rate study. This can save the time and cost of preparing a rate study; however, using a 10 percent indirect cost rate usually under-recovers indirect costs.

A-87, Attachment A, paragraph G allows a 10 percent default indirect cost rate for billing one County department's/agency's costs to another (see this A-87 section for details).

2.9 Updating Indirect Costs, Fees, and Rates

Indirect costs, fees, and rates should be reviewed periodically to determine whether they require updating. If updating is needed, the study may be entirely redone. Alternatively, it may be possible to adjust for inflationary changes or to update specific cost elements. Implementing fee changes will generally require Board of Supervisors approval.

2.10 Reviews of Indirect Costs

When a department/agency calculates its own indirect costs, it may, if desired, submit its calculations to Auditor-Controller Cost Studies for review. Even when a department/agency contracts with a consultant to prepare its rate study, Auditor-Controller Cost Studies is available to review the consultant's work.

2.11 Record Keeping Requirements for Specific Cost Elements

This procedure has not discussed record keeping requirements for specific costs elements, such as personnel costs. Documentation requirements are covered by A-87, department policies, and agreements.

2.12 Retention of Records

Documentation should be retained for a minimum of three years after the year to which the cost study applies. If applicable, departments/agencies should review their grantor agency's specific record retention requirements.

2.13 Additional Guidance

For additional information regarding CWCAP, departmental indirect costs/ rates, or ICRPs, contact the Auditor-Controller's Cost Studies.

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Discharge of Accountability for Collections

SUBJECT:

DISCHARGE OF ACCOUNTABILITY FOR COLLECTIONS
NUMBER:

B.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 5/83
REVISED: 8/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

The Auditor-Controller may, at his discretion, discharge from further accountability any County department, officer, or employee charged by law with the collection of money which is due and payable if:

The amounts are too small to justify the cost of collection.

The likelihood of collection does not warrant the expense involved.

The amount has been otherwise lawfully compromised or adjusted.

Such discharge of accountability shall only be made upon consideration and approval of a verified application filed by the department, agency, or district head with the Auditor-Controller. Such discharge of accountability does not constitute a release of any persons from liability for payment of any amount due the County.

1.1 Purpose

To establish uniform procedures for preparation of requests by departments/ agencies/districts and approval by the Auditor-Controller of discharges of accountability for collection of money due the County.

1.2 Authority

1.2.1 State of California Government Code Sections 25257 to 25259.5

These sections govern the discharge of accountability of debts due and payable to the County and allow the Board of Supervisors, by resolution, to authorize the County Auditor-Controller to discharge any department, officer, or employee from accountability for collection.

1.2.2 State of California Code of Civil Procedure Sections 335 to 339.3

These sections prescribe the various statutes of limitations for commencing action on amounts payable to the County.

1.2.3 Board of Supervisors' Resolution No. 79-675

This resolution, dated May 8, 1979, authorizes the Auditor-Controller to discharge any department, officer, or employee from accountability for collection.

1.3 Definitions

1.3.1 Officer

"Officer of the County," includes any elective or appointed officer of the County, and any person in charge of any office, department, service, or institution of the County, or a division or branch thereof, and as enumerated in Section 24000 of the Government Code.

1.3.2 Money

Includes any County or district tax assessment, penalty, cost, license fee or any fine, assessment or penalty, or any money which is due and payable to the County or district for any reason.

2. PROCEDURE

2.1 Application for Discharge of Accountability

Departments, agencies, or districts desiring discharge of accountability of amounts considered uncollectible shall file with the Auditor-Controller Accounts Receivable Unit an "Application for Discharge of Accountability," (Exhibit I attached). The application for a discharge of accountability shall include:

The amount owing.

Except where disclosure of such information is prohibited by state or federal law, the names of the debtors or persons liable and the amounts owed by each, which may be by reference to specific documents incorporated thereby in the application.

The estimated cost of collection, or a statement that the likelihood of collection does not warrant the expense involved, or a specific reference to the official records establishing that the amount owed has been compromised or adjusted. The applicant shall furnish such additional information, as the Auditor-Controller deems necessary, to determine that the request for discharge is justified.

Any other fact warranting the discharge.

A verification by the applicant that the facts stated in the application are true and correct.

For accounts $1,000 or greater, the applicant is required to provide documentation such as a death certificate, bankruptcy notice or explanation as to why the account is uncollectible.

Attach a separate listing of names and amounts owed if all the accounts cannot be listed on the application form. The application must be signed by the department, agency, or district head applying for the discharge of accountability.

2.2 Auditor-Controller Review

The Auditor-Controller or his designee shall review the application and determine those amounts that will be discharged.

One copy of the application signed by the Auditor-Controller or his designee indicating those amounts discharged, shall be returned to the applicant. The original shall be filed with the Auditor-Controller Accounts Receivable Unit.

2.3 Referral to Board of Supervisors

Any amounts not discharged by the Auditor-Controller shall be submitted by the Officer or employee to the Board of Supervisors for disposition.

2.4 Annual Report

On or before August 3lst of each year, the Auditor-Controller Accounts Receivable Unit shall submit a report to the Auditor-Controller listing those applicants whose requests for relief of accountability have been approved and the amounts for which accountability was discharged during the preceding fiscal year.

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Insufficient Funds Checks

SUBJECT:

INSUFFICIENT FUNDS CHECKS
NUMBER:

B.4.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS
GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 01/79
REVISED: 12/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

All County departments and agencies shall charge and attempt to collect a returned check service charge on all checks payable to the County of Orange that are returned unpaid by the bank, with certain exceptions as enumerated below in Section 2. All departments and agencies shall charge a $25 returned check service charge for the first returned check, and a $35 charge for each subsequent returned check by the same payor, pursuant to California Civil Code Section 1719. If the payor fails to pay the amount of the check, the returned check service charge, and the mailing costs of the demand letter 30 days after mailing a proper written demand, the payor could be liable instead for the amount of the check and treble damages.

This Policy and Procedure does not apply to the County Treasurer-Tax Collector. That department is covered by separate law covering insufficient funds checks.

1.1 Purpose

The intent of this procedure is to provide more efficient and cost effective collection of returned checks by imposing a service charge and pursuing treble damages when appropriate. This will partially compensate the County for additional time spent on collection efforts, and also may provide a deterrent to future writers of checks on insufficient funds. The service charge is to be $25 or $35, as applicable, and treble damages are to be three times the amount of the returned check, but in no case less than $100 or more than $1,500, in accordance with Civil Code Section 1719.

1.2 Authority

1.2.1 State of California Civil Code Section 1719

California Civil Code Section 1719 imposes the $25/$35 returned check service charge on payors of checks on insufficient funds, provides for imposition of treble damages for failure to pay after demand for payment, and provides for certain exceptions.

1.2.2 State of California Government Code Sections 25257 to 25259.5

California Government Code Sections 25257 to 25259.5 govern the discharge of accountability of debts due and payable to the County and allow the Board of Supervisors, by resolution, to authorize the County Auditor-Controller to discharge any department, officer, or employee from accountability for collection.

1.2.3 Board of Supervisors' Resolution No. 79-675 dated May 8, 1979

Board Resolution No. 79-675 authorized the Auditor-Controller to discharge County departments, officers, and employees from accountability for collection of debts due and payable to the County.

1.2.4 Board of Supervisors' Resolution No. 00-445 dated December 5, 2000

Board Resolution No. 00-445 directs all departments and agencies to charge the returned check service charge provided in Civil Code Section 1719 (with the exception of the Treasurer-Tax Collector).

1.3 Definitions

1.3.1 Insufficient Funds Checks/Checks Returned from the Bank Unpaid

"Insufficient Funds Checks," "Checks Returned from the Bank Unpaid," or "Nonsufficient Funds Checks (NSF Checks)" are terms used interchangeably. They include, but are not limited to, checks returned because of: insufficient funds, closed accounts, stop payments, incorrect date, inconsistency in amounts, incorrect signature, and/or lack of signature.

1.3.2 Treble Damages

Treble damages is an additional amount for which the writer of a returned check shall be liable for if the check amount plus the returned check service charge and the mailing cost are not paid within 30 days of the date that the County mails, by certified mail, a written demand for payment. In addition to the amount of the check, the writer of a returned check shall be liable for treble damages of three times the amount of the returned check, but in no case less than $100 or more than $1,500. When a person becomes liable for treble damages through a court judgment, the returned check service charge and mailing cost of the demand notice no longer apply.

1.4 Allowable Waivers of Returned Check Service Charges

1.4.1 Civil Code Section 1719 Waivers

The returned check service charge shall be waived in those instances as provided in Civil Code Section 1719 as follows:

The payor of the check has stopped payment in order to resolve a good faith dispute, as defined in Civil Code Section 1719(b), with the payee (the County), as provided in Civil Code Section 1719(a)(3).

The payor of the check presents the County with written confirmation by the payor's financial institution that the check was returned to the County by the financial institution due to an error on the part of the financial institution, as provided in Civil Code Section 1719(a)(4).

The payor of the check presents the County with written confirmation that the payor's account had insufficient funds as a result of a delay in the regularly scheduled transfer of, or the posting of, a direct deposit of a social security or government benefit assistance payment, as provided in Civil Code Section 1719(a)(5).

The payor of the check has become liable for treble damages for a check that is the subject of a written demand, as provided in Civil Code Section 1719(a)(2).

1.4.2 Department/Agency Waivers

Board Resolution No. 00-445 authorizes County department/agency directors to waive the returned check service charge in the following instances:

The department/agency finds that the payor of the check is indigent, and further efforts at collection of the service charge would be fruitless due to the indigence of the payor.

The department/agency determines that the collection of a returned check service charge from a particular payor would be adverse to the effective provision of County services to that payor under the program being provided by the department/agency, such as, behavioral health services or other health services.

The department/agency determines that very few returned checks in small dollar amounts are handled by the department/agency, and that charging and collecting the returned check service charge would occur so infrequently that the cost of charging and collecting the returned check service charge would exceed the amount of additional collected service charges.

2. PROCEDURE

2.1 Collection by Auditor-Controller

The Auditor-Controller provides returned check collection services for many County departments, agencies, and districts. The procedures in this Section 2.1 apply to insufficient funds checks for those departments, agencies, and districts.

2.1.1 County Treasurer-Tax Collector and Bank Procedures

The County Treasurer-Tax Collector forwards checks received by County departments, agencies, and districts to Bank of America for deposit. Bank of America re-deposits any "unpaid" checks in an attempt to clear checks covered by a subsequent deposit. Checks returned "unpaid" after the redeposit are returned to the County Treasurer-Tax Collector. The County Treasurer-Tax Collector retains the returned checks payable to that office and forwards the remaining returned checks to the Auditor-Controller, together with copies of the Notice of Checks Returned Form (refer to Exhibit I of this procedure).

2.1.2 Journal Voucher Preparation and Notification

Upon receipt of the returned checks, the Auditor-Controller General Ledger Section makes the appropriate journal entries to cancel the payments, and forwards notification of each returned check to the payee department, agency, or district.

2.1.3 Auditor-Controller Collection Procedures

The Auditor-Controller Collections/Accounts Receivable Section sends a letter to the writer of a returned check, requesting payment by cashier's check or money order (refer to Exhibit II of this procedure), and, if payment has not been received, sends a follow-up demand letter, by certified mail, two weeks from the date that the first demand letter was mailed (refer to Exhibit III of this procedure). The Auditor-Controller Collections/Accounts Receivable Section also utilizes other reasonable means available to obtain payment when cost effective (e.g., state tax intercepts, outside collection services). If payment is received for the original amount due, but the returned check service charge is omitted, the Auditor-Controller will make reasonable efforts as described above to collect the service charge.

2.1.4 Legal Action

If payment has not been received within thirty (30) days from the date the certified letter was mailed, the Auditor-Controller initiates legal action against the payor for the amount of the check plus treble damages.

2.1.5 Collection of Payment

When a payment is received by the Auditor-Controller as a result of Auditor-Controller collection efforts, the Auditor-Controller notifies the payee department, agency, or district, and deposits the original amount of the check plus the returned check service charge in the appropriate fund of the payee department, agency or district. The original amount of the check is credited to the account that was credited when payment was first made, and the service charge is credited to Revenue Source Code 7690, "Returned Check Charges." Treble damages received as a result of Auditor-Controller collection efforts are deposited in Auditor-Controller Fund/Agency 100/003, Revenue Source Code 7670, "Miscellaneous Revenue," sub revenue 21.

2.1.4 Relief of Accountability

After all collection efforts have been exhausted, the Auditor-Controller grants relief of accountability, in accordance with Government Code Sections 25257 through 25259.5 and County Accounting Procedure (CAP) #B.3., Discharge of Accountability for Collections, and notifies the affected department, agency, or district when relief of accountability has been authorized.

2.2 Limited Responsibility for Collection by Certain Departments/Agencies

Due to legal restrictions or department/agency preference, certain departments/agencies are responsible for their own initial efforts for collection of returned checks, and are excluded from the initial collection process of the Auditor-Controller described above in Section 2.1. These departments/agencies are:

Clerk of the Board of Supervisors

Community Services Agency - Public Administrator/Public Guardian

County Clerk-Recorder

District Attorney - Family Support

John Wayne Airport

Sheriff-Coroner - Marshal Division

Orange County Housing Authority

Probation

Social Services Agency

Other small agencies who have infrequent returned checks and do not use Auditor-Controller Collection Services.

The procedures in this Section 2.2 are applicable to the above-listed departments/agencies.

2.2.1 Receipt of Returned Checks/Journal Entries

The County Treasurer-Tax Collector retains the returned checks payable to that office and forwards the remaining returned checks to the Auditor-Controller Collections/Accounts Receivable Section, together with copies of the Notice of Checks Returned Form. The Treasurer-Tax Collector also sends copies of the Notice of Checks Returned Form to the Auditor-Controller General Ledger Section. Upon receipt of the Notice of Checks Returned Form, the Auditor-Controller General Ledger Section makes the appropriate journal entries to cancel the payments. The Auditor-Controller Collections/Accounts Receivable Section then forwards the returned checks to the departments/agencies listed above, along with the Notice of Checks Returned Form.

2.2.2 Department/Agency Collection Responsibilities

The payee department/agency has a responsibility both to monitor their own returned checks and the applicability of the $25 or $35 returned check service charge, and make a reasonable effort to collect the returned checks and the applicable returned check service charge. The payee department/agency must attempt to contact the payor by telephone and, if the telephone contact fails, send a letter requesting payment (refer to Exhibit II of this procedure). Notification of possible legal action should be included in this correspondence.

If payment is not received, the payee department/agency sends a follow-up demand letter, by certified mail, two weeks from the date that phone contact was first made or the first demand letter was mailed (refer to Exhibit III of this procedure).

2.2.3 Referral to Auditor-Controller

If payment has not been received within thirty (30) days from the date the certified letter was mailed, the returned checks, together with copies of all correspondence, may be referred to the Auditor-Controller Collections/Accounts Receivable Section for final collection efforts and the enforcement of treble damages. If payment is received, the Auditor-Controller Collections/Accounts Receivable Section notifies the payee department/agency. The original amount of the check is credited to the account that was credited when payment was first made, and the service charge is credited to Revenue Source Code 7690 in a fund of the payee department/agency. Treble damages received as a result of Auditor-Controller collection efforts are deposited in Auditor-Controller Fund/Agency 100/003, Revenue Source Code 7670, sub revenue 21.

2.2.4 Relief of Accountability

After all collection efforts have been exhausted by the Auditor-Controller, the payee department/agency is notified. The payee department/agency must request relief of accountability in accordance with Government Code Sections 25257 through 25259.5 and CAP #19, Discharge of Accountability for Collections. The Auditor-Controller notifies the payee department/agency when the write-off has been made.

2.3 Notification to the Public

Departments/agencies are responsible for providing appropriate signage and notification to the public of insufficient funds check service charges. Examples of appropriate notification are signs placed on counters or statements printed on invoices or envelopes.

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State-Mandated Costs and Claims for Reimbursement

SUBJECT:

STATE-MANDATED COSTS AND CLAIMS FOR REIMBURSEMENT
NUMBER:

B.5.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS/AGENCIES AND DISTRICTS

EFFECTIVE: 1/1/81
REVISED: 07/2000

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

All County departments/agencies and districts governed by the Board of Supervisors shall determine, document and claim reimbursement for "costs mandated by the State." Claims for reimbursement are to be prepared by the affected entities, reviewed by the Auditor-Controller, and filed with the State Controller. Annual reimbursement claims for costs incurred during the previous fiscal year and estimated claims for costs to be incurred during the current fiscal year must be filed with the State Controller's Office (SCO) and postmarked on or before January 15 following the fiscal year in which the expenditures occurred. Initial reimbursement claims (first-time claims) for reimbursement of costs of a previously unfunded mandated program must be filed within 120 days from the date of issuance of the claiming instructions by the SCO for the program.

1.1 Purpose

To maximize County recovery of the costs of State-mandated functions and to sufficiently document those costs to avoid potential audit disallowances.

1.2 Authority

1.2.1 State Constitution

Article XIII B, Section 6, of the California Constitution (Proposition 4, November 6, 1979). Since 1979, legislative changes to State-mandated programs have been made annually.

1.2.2 Government Code Sections 17500 through 17630

The sections in this chapter of the Government Code provide for the implementation of Section 6 of Article XIIIB of the California Constitution by defining the procedures for reimbursements to local agencies for costs mandated by the State. Sections 17525-17533 establish the role of the Commission on State Mandates to act as a quasi-judicial body in accordance with the requirements of Section 6 of Article XIIIB. Sections 17615 and 17616 describe the establishment of a system of state mandate apportionments to streamline the reimbursement process.

1.2.3 Board Resolution

Board of Supervisors' Resolution No. 82-162 dated February 2, 1982 authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors.

1.3 Definitions

1.3.1 State-Mandated Costs

Any increased costs which the County is required to incur after July 1, 1980, as a result of any State statute enacted on or after January 1, 1975, or any executive order implementing any State statute enacted on or after January 1, 1975, which mandates a new program or higher level of service of an existing program. Reimbursable mandated costs are subject to limitations. (See Section 3.2.4.)

1.3.2 Commission on State Mandates (COSM or Commission)

A quasi-judicial body that receives, hears, and decides on test claims, adopts Parameters and Guidelines, establishes statewide cost estimates and hears and decides on incorrect reduction claims. The Commission was created in 1985, and has seven members.

1.3.3 Test Claim

The administrative procedure available to County departments/agencies seeking reimbursement for a law or an executive order believed to contain a State mandate. Filing a test claim with the COSM is the first step in the reimbursement process. The Commission holds a hearing to decide by majority vote whether or not a reimbursable mandate exists. A successful test claim filed by a local entity establishes the right to claim for all local agencies similarly situated.

1.3.4 Parameters and Guidelines

Parameters and Guidelines for claiming are developed by the test claimant when the COSM determines that a mandate exists. The Parameters and Guidelines describe allowable program costs and other requirements of claiming, and must be adopted by the COSM.

1.3.5 Statewide Cost Estimate

An estimate of costs associated with a particular mandate, performed via a survey of eligible claimants by COSM staff. After approving the costs, the Commission requests funding, generally through a claims bill, that is subject to legislative review and approval.

1.3.6 Claiming Instructions

Claiming instructions are developed and issued by the State Controller for State-recognized mandates. Claiming instructions set forth deadlines, provide descriptions of allowable costs, and provide forms to local agencies who are then able to file actual and estimated claims with the State Controller.

1.3.7 Indirect Cost Rate Proposal (ICRP)

A specific form of department indirect cost rate calculation that conforms to state and federal regulations, terminology, and preparation methodologies. ICRPs are specifically addressed by OMB Circular A-87, Attachment E. An ICRP rate is stated as a percentage that represents the ratio of total department indirect costs and County Wide Cost Allocation Plan (CWCAP) costs to a base (e.g., salaries.) That percentage can then be applied to the base amount (e.g., salaries) of a function, program, or activity, within the department to determine its total indirect costs.

1.3.8 Field Audit

An on-site review of supporting documentation done by the SCO. Not all claims are field audited. A claim is subject to audit by the Controller no later than two years after the end of the calendar year in which the claim is filed or last amended. If no funds are appropriated for the program for the fiscal year in which the claim is made, the time for the State Controller to initiate an audit commences from the date of the initial payment of the claim.

1.3.9 Deficiency Appropriation

A deficiency appropriation occurs when the State Budget does not appropriate enough funds for reimbursement to a particular mandated program. The State Controller must make a request for a deficiency appropriation to cover the shortfall.

1.3.10 State Mandate Apportionment System

The State Mandate Apportionment System (SMAS) is a method of paying certain mandated programs as apportionments. This method is utilized whenever a program has been approved for inclusion in SMAS by the COSM.

1.3.11 Countywide Cost Allocation Plan (CWCAP)

A complex cost study that allocates the costs of County support departments (such as Public Facilities and Resources Department/Facilities Operations, Auditor-Controller, Data Systems, and the County Executive Office) to operating program departments, for claiming and reimbursement purposes. The CWCAP is compiled under the guidelines established by the Federal Government for claiming Federal reimbursements under Office of Management and Budget (OMB) Circular A-87, "Cost Principles for State and Local Governments." This publication can be accessed on the OMB website at the following address: http://www.whitehouse.gov/omb/grants/index.html.

1.3.12 California State Association of Counties (CSAC)

An organization which assists member counties in obtaining reimbursement for their mandated costs. The County of Orange is a CSAC member.

2. RESPONSIBILITIES

2.1 Responsibilities of Departments/Agencies and Districts Governed by the Board of Supervisors

County departments, agencies, and districts governed by the Board of Supervisors are responsible for the following State-mandated cost-related functions:

Identify reimbursable mandated costs.

Implement procedures for documenting mandated costs.

Prepare claims for reimbursement from the State. Gather and maintain proper documentation to support claim for possible audit or further review by the SCO.

Submit accurate and timely claims to the Auditor-Controller Financial Reporting/Mandated Costs Unit for reviewing and filing with the State.

Analyze legislation and executive orders that affect them, and determine if a reimbursable mandate exists.

Consult with the Auditor-Controller Financial Reporting/Mandated Costs Unit and the California State Association of Counties (CSAC) to analyze prospective test claims, and to determine if a test claim should be filed. If a test claim is necessary, prepare it for submittal to the COSM.

2.2 Auditor-Controller Financial Reporting/Mandated Costs Unit's Responsibilities

It is the responsibility of the Auditor-Controller Financial Reporting/Mandated Costs Unit to provide departments/agencies and districts assistance with:

Determining whether reimbursement may be obtained for costs under a particular State mandate.

Establishing documentation requirements and procedures.

Reviewing all claims being submitted to the State for reimbursement of mandated costs (see Section 3.4), and filing these claims with the State.

Coordinating State audits of County claims by assisting auditors, attending audit entrance and exit conferences, and compiling audit report replies.

Coordinating responses to the Commission's requests for developing Statewide Cost Estimate Surveys.

Coordinating and notifying departments/agencies and districts of workshops and meetings regarding State mandated cost claiming.

3. PROCEDURES

3.1 Determining Mandates

3.1.1 Identifying a Mandate

Departments/agencies and districts governed by the Board of Supervisors review legislation and executive orders that affect them to determine if the statute at issue contains a reimbursable mandate. To determine if a mandate is reimbursable, it must meet the following criteria:

3.1.1.1 Minimum Requirements for a Reimbursable Mandate

Statute was enacted after 1975.

Statute contains a new program or higher level of service in an existing program which must be performed by a local agency.

The program is a governmental service to the public, or a situation unique to government.

Meeting the above criteria indicates that a mandate may exist. Further research and review is required. The Auditor-Controller Financial Reporting/Mandated Costs Unit and the CSAC should be notified at this time.

3.1.1.2 Disclaimers of a Reimbursable Mandate

Even though a mandate may exist, it may be disclaimed due to constitutional or statutory disclaimers. The following criteria should be used:

Did a local agency request the legislation?

Does the law in question create or eliminate a crime or infraction, or change a penalty?

Does the law or regulation affirm a court action?

Does the law or regulation implement a federal mandate?

Does the law or regulation implement a voter approved mandate?

Does the law or regulation lead to offsetting cost savings?

Does the law or regulation provide that a fee may be charged that will offset the cost?

Answering "yes" to the above questions means that there may be limitations in pursuing the mandate. With the exception of A and B, which are constitutionally provided for, however, a "yes" answer to the remaining questions should not automatically lead to the conclusion that the mandate is disqualified.

3.1.2 Identifying Increased Costs

After determining that a mandate exists, potential increased costs need to be identified to determine whether to pursue a test claim. The Government Code provides that a mandate must increase costs by more than $200 in a fiscal year to be pursued. Increased costs are identified as:

Costs originating with the implementation of the mandate.

Costs of increased levels of efforts.

3.1.3 Filing a Test Claim

Test claims are submitted to and heard by the COSM in Sacramento. Any local agency can file a test claim on behalf of all local agencies in the State. The lead claimant is the first agency to file the test claim documents with the Commission. The Commission votes to deny or find a mandate, and a written decision is prepared which must be affirmed by the Commission. If the decision is unfavorable to the test claimant, a lawsuit may be filed in Superior Court. If the decision is favorable, the Parameters and Guidelines process is initiated. The ruling applies to all County governments, not just to the test claimant.

3.1.4 Parameters and Guidelines

Parameters and Guidelines are prepared by the test claimant and submitted to the Commission staff within 60 days of the written decision. Parameters and Guidelines are the basis upon which claims will be paid. After the Parameters and Guidelines have been adopted, the Commission must adopt an estimate of statewide costs resulting from the mandate. Statewide Cost Estimates exceeding $1,000,000 are reported to the Legislature and the amount is included in a local government claims bill.

The overall process of filing the initial test claim to approving the mandate takes approximately 12 months.

3.2 Types of Claims

There are four types of claims for costs mandated by the State:

3.2.1 Reimbursement Claim

Initial reimbursement claims are first-time claims seeking reimbursement of costs for one or more prior fiscal years of a program which was previously unfunded. Claims are due 120 days from the date when claiming instructions are issued by the SCO for the program.

Annual reimbursement claims are for mandates that have been previously funded and are for costs incurred in the prior fiscal year. These claims must be filed by January 15 following the fiscal year in which costs were incurred for the program.

3.2.2 Estimated Claim

Estimated Claims are filed with the SCO during the fiscal year in which the mandated costs are to be incurred. Estimated claims may be filed in conjunction with an initial reimbursement claim, annual reimbursement claim, or singularly at other times.

3.2.3 Entitlement Claim

An Entitlement Claim is filed with the SCO for the sole purpose of establishing or adjusting a base year entitlement for a mandated program that has been included in the State Mandate Apportionment System (SMAS). When the claims are approved and a base year entitlement amount is determined, the claimant will receive an apportionment reflective of the program's current year costs.

3.2.4 Incorrect Reduction Claim

An Incorrect Reduction Claim is a claim filed with the COSM when a local agency believes a reimbursement claim has been incorrectly reduced by the State Controller. The Commission has legal authority to reverse or sustain all or part of the State Controller's reductions.

3.3 Filing a Reimbursement Claim

3.3.1 Claiming Instructions

Claiming Instructions are prepared by the State Controller and describe specific requirements for filing a claim. For the most part, the Controller's claiming instructions are identical to the Parameters and Guidelines that have been approved by the Commission. The claiming instructions indicate the amount of money appropriated for each mandate and provide an individual set of filing guidelines and forms required for filing the claim.

3.3.2 Claimable Costs

Claimable costs consist of both direct and indirect costs. These include the following:

Direct labor and benefits

Services and supplies directly attributable to the mandate

Department/agency indirect costs

Countywide indirect costs (CWCAP)

3.3.3 Documentation

For the claim to be considered properly filed, the claim must include supporting documentation as specified in the instructions to substantiate the costs claimed. In addition, the claimant must explain the labor activities performed by each employee for whom costs were claimed. It is very important to have good time-keeping records. Detailed timesheets are the preferred supporting documentation for claiming labor costs. Refer to the mandate instructions for specific source documentation requirements. Also refer to OMB Circular A-87, Attachment B, Section 11.

3.3.4 Record Retention

For auditing purposes, the State requires that documentation to support actual costs claimed must be retained for a period of two years after the end of the calendar year in which the reimbursement claim is filed or last amended. In addition, documentation should be retained until the claim has been fully reimbursed by the State, and all audit adjustments have been resolved.

3.4 Claims Review Assistance by the Auditor-Controller Financial Reporting/Mandated Costs Unit

All claims filed by departments/agencies shall be reviewed by the Auditor-Controller Financial Reporting/Mandated Costs Unit before mailing to the State. The Unit will assist by:

Providing departments/agencies and districts with claiming instructions and/or Parameters and Guidelines.

Providing assistance on the preparation of claims.

Reviewing completed claims for accuracy and documentation.

Signing the certification on all claims.

Mailing claims to the State.

Monitoring the status of claims filed with the State.

Allocating the CWCAP portion of the funds received from the State, and preparing the journal voucher for distribution of funds to the departments/agencies and districts.

3.5 Deadlines

In order to obtain 100% reimbursement of costs, annual claims must be mailed by January 15 following the fiscal year in which the expenditures occurred. First-time claims must be filed within 120 days from date of issuance of the claiming instructions. Claims filed within one year of the deadline will be reduced by a late penalty of 10%, not to exceed $1,000. Claims filed more than one year after the deadline will not be accepted.

3.6 Claim Reduction

Reimbursement claims submitted to the SCO undergo a desk audit review. Departments/agencies may be called during this period to answer clarifying questions or to provide additional information for the claim. The State Controller may reduce the claim if they think that it is incorrect.

After payment has been made, a claim may be field-audited by the State Controller's Field Audits Division. Should the State Auditor feel that an excessive amount has been claimed, or that funds claimed for activities are not covered under the mandate, the SCO will reduce the claim. The SCO sends a letter to the claimant advising of the reduction and requesting that the claimant remit a warrant to the State for the amount due. Failure to do so results in the SCO offsetting the amount from the next payment due to the claimant for state-mandated cost programs.

If the County does not concur with a claim reduction taken by the SCO, the County has the option to file an Incorrect Reduction Claim (see Section 3.2.4) with the COSM and argue for restoration of the reduction. If the Commission's action is unsatisfactory, the department/agency can file suit in Superior Court.

3.7 Claim Payment

Effective July 1996, the State Controller is required to pay any eligible claim within 60 days of the filing deadline or 15 days after the appropriation is provided, whichever is later.

Interest is due if the Controller's payment is more than 365 days after the adoption of the Statewide Cost Estimate for an initial claim made, or beginning on the 61st day following a claiming deadline, whichever is later.

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Cash Advance - Revolving Funds

SUBJECT:

CASH ADVANCES - REVOLVING FUNDS
NUMBER:

C.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS/AGENCIES

EFFECTIVE: 12/92
REVISED: 06/93, 02/02

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose

1.2 Authority

1.3 Definitions

2. PROCEDURE

2.1 Cash Advance Request

2.2 Reimbursement Claim

2.3 Repayment of Unused Portion of Cash Advance

2.4 Recording the Receipt of Claim and Unused Portion of Cash Advance by the Custodian

2.5 Reimbursement of Expenses in Excess of Cash Advance

2.6 Reimbursing the Fund

2.7 Monitoring Cash Advances in the Revolving Fund

2.8 Certification of No Advances Outstanding

2.9 Liability of Unauthorized Expenditures

2.10 Use of Credit Card Encouraged

EXHIBITS

Exhibit I - Cash Advance Request Form

SUBJECT:

CASH ADVANCES - REVOLVING FUNDS
NUMBER:

C.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS/AGENCIES

EFFECTIVE: 12/92
REVISED: 06/93, 02/02

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Regular cash advances for travel or expenses related to such travel shall be issued from the revolving funds used for petty cash disbursements established for each County department/agency, according to the provisions of County Accounting Procedure (CAP) #C.7., Revolving Cash Funds. As stated in Section 2.7 of this policy, cash advances for travel should be monitored separately from other revolving fund activities, and a separate account should be maintained.

Cash advances shall be made only to Officers or their duly authorized representatives.

1.1 Purpose

Cash advances are issued to avoid causing hardship to employees who would otherwise have to use their own funds when traveling on County business.

1.2 Authority

1.2.1 Board of Supervisors' Minute Order Item No. 21, dated March 16, 1999

Established the County of Orange Administrative Procedure No. 017-02, County Business Travel and Reimbursement of Related Expenses.

1.2.2 Board of Supervisors' Resolution No. 85-1684, dated November 26, 1985

Establishes revolving funds, provides for expense limitation, and authorizes the functions of the Auditor-Controller and the Purchasing Agent to be performed.

1.2.3 Board of Supervisors' Resolution No. 92-1008, dated September 15, 1992

Amends Resolution No. 85-1684 to set the limit for individual expenses at $1,000.

1.2.4 Board of Supervisors' Resolution No. 92-1274, dated November 17, 1992

Revises the policy for the issuance of cash advances for travel expenses incurred by Officers and employees.

1.2.5 State of California Government Code Sections 29320 to 29334

Authorizes the Board to delegate authority to the Auditor-Controller to establish revolving funds for the use of any Officer.

1.3 Definitions

1.3.1 Officer

"Officer" includes any elective or appointed officer of the County, and any person in charge of any office, department, service, or institution of the County, or a division or branch thereof, and as enumerated in Section 24000 of the Government Code.

1.3.2 Authorized Representatives

An Officer may designate one or more individuals as authorized to receive cash advances.

1.3.3 Cash Advance

A payment of cash to Officers, or their authorized representatives, to provide for traveling or expenses, other than automobile mileage, related to such travel.

1.3.4 Requestor

The person requesting a cash advance.

2. PROCEDURE

2.1 Cash Advance Request

2.1.1 Cash Advance Request Form

For a cash advance to be issued, a Cash Advance Request form shall be prepared. (See Exhibit I.) Cash advances must be approved by a person authorized by the Officer. The person authorizing the cash advances should not have other revolving fund (custodian, check signer, or reconciliation) duties. Advances over $1,000 must be approved by the Officer, or, in his/her absence, by another member of management in the Officer's department/agency. The person approving the cash advance shall sign the Cash Advance Request form in the box marked "Approved By."

2.1.2 Employee Signed Statement

The following statement shall be included in the body of the Cash Advance Request form and signed by the employee to whom the advance is issued:

"I accept full responsibility for safeguarding the above amount advanced from time of receipt until repayment. I agree that I am responsible for obtaining all necessary receipts documenting travel expenses and will file a Mileage & Other Expenses Claim with the revolving fund custodian no later than five (5) working days after returning from my trip. At that time, I will repay any excess amount advanced over claimed actual travel expenses to the custodian. I further authorize that any cash advanced to me that is not claimed or repaid can be deducted from any amount due to me from the County of Orange."

The requestor shall sign and date the Cash Advance Request in the box marked "Signature of Requestor."

2.1.3 Reasonable Cash Advance

The amount advanced should be reasonable and approximately equal to the amount to be used during the travel event. The cash advance should not be issued unreasonably far in advance of the travel event.

2.1.4 Issuance of Cash Advance

The approved Cash Advance Request form shall be submitted to the revolving fund custodian, who shall issue the check for the cash advance. No advances will be made unless the Cash Advance Request is properly completed. The person who physically receives the cash advance from the custodian shall sign and date the Cash Advance Request in the box marked "Received By."

The cash advance shall be issued in the form of a check payable to the person whose name appears in the "Name of Requestor" box on the Cash Advance Request form. Drawing checks to "cash" or signing blank checks is prohibited.

2.2 Reimbursement Claim

2.2.1 Mileage and Other Expenses Claim Form

The requestor shall file a Mileage and Other Expenses Claim form with the custodian of the revolving fund, itemizing the actual and necessary expenses. The claim shall be submitted within five (5) working days after the completion of the event for which the advance is made. Refer to the back of the Mileage and Other Expenses Claim form for a description of the types of expenses requiring receipts. The date and the amount of the cash advance should be noted on the Mileage and Other Expenses Claim form.

2.2.2 Automobile Mileage Expenses Excluded

Mileage expenses for the operation of a private automobile shall not be included with cash advances. The employee should submit a separate claim to the Auditor-Controller for the reimbursement of mileage expenses.

2.2.3 Review of Mileage and Other Expenses Claim Form

The Mileage and Other Expenses Claim form should be subject to the same review process required for any other Mileage and Other Expense Claim form, to insure that expenses are appropriate and required receipts are attached. The form must be signed by an employee who is authorized to approve such claims for payment.

2.3 Repayment of Unused Portion of Cash Advance

The requestor shall return any unused portion of the cash advance to the revolving fund custodian. The unused portion must be returned, with the Mileage and Other Expenses Claim form, within five (5) working days after the completion of the event for which the advance was made. This repayment shall be in the form of a personal check, and not cash, made payable to the Officer, to minimize the risk associated with the handling of cash.

If a check submitted for repayment is returned for insufficient funds, the requestor has not fulfilled this requirement, and may be subject to service charges and damages as provided by CAP #B.4., Insufficient Funds Checks.

2.4 Recording the Receipt of Claim and Unused Portion of Cash Advance by the Custodian

Immediately upon receipt of the Mileage and Other Expenses Claim form, the revolving fund custodian shall sign and date the Cash Advance Request in the box marked "Claim Received By," and post the amount of the claim to the box marked "Amount of Claim." Immediately upon receipt of any unused portion of the cash advance, the custodian of the revolving fund shall sign and date the Cash Advance Request form in the box marked "Repayment Received By," post the amount of the repayment to the box marked "Amount of Repayment," and deposit the check into the checking account used for the revolving fund. The custodian shall otherwise record and deposit this receipt in the same manner as other reimbursements to revolving funds.

A copy of the Cash Advance Request form, signed by the custodian to acknowledge receipt of the claim and repayment, if any, shall be issued to the requestor.

2.5 Reimbursement of Expenses in Excess of Cash Advance

The revolving fund custodian shall reimburse the requestor, from the revolving fund, for any claimed actual travel expenses in excess of the cash advance. This payment shall be in the form of a petty cash check, and not cash, made payable to the requestor, to minimize the risk associated with the handling of cash.

2.6 Reimbursing the Revolving Fund

When a department/agency wishes to have its revolving fund reimbursed for cash advance travel expenses, the custodian shall complete a Petty Cash/Cash Advance Reimbursement claim envelope and enclose all Mileage and Other Expenses Claim forms and supporting documents. An authorized signer, a person who does not have custodian, check signer or reconciliation duties, reviews the envelope's contents for propriety, signs and seals the envelope, and submits it to the Auditor-Controller Claims and Disbursing Section.

Claims for reimbursement for cash advance travel expenses shall be submitted separately from regular revolving fund reimbursement claims.

A more complete discussion of the accounting for revolving funds can be found in CAP #C.7., Revolving Cash Fund.

2.7 Monitoring Cash Advances in the Revolving Fund

Cash advances for travel should be monitored separately from other revolving fund activities, but a specified amount attributable to cash advances need not be separately established. For example, a revolving fund of $10,000 may at various times have $2,000, $3,000, or $4,000 of outstanding cash advances, for which a separate accounting should be maintained. Each department/agency shall monitor the outstanding cash advances on a regular basis.

2.8 Certification of No Advances Outstanding

Signing and submitting the Petty Cash/Cash Reimbursement claim envelope for reimbursement of the revolving fund shall represent department/agency certification that all cash advances were made in accordance with policies and procedures established for petty cash funds and cash advances for travel purposes. Such signature and submittal is also a representation that any cash advances outstanding for more than 30 days after completion of the travel event have been brought to the attention of the department head and are being actively pursued for collection at the earliest possible time.

2.9 Unauthorized Expenses

Expenses not consistent with County policy will not be reimbursed by the Auditor-Controller.

2.10 Use of Purchasing Card/Credit Card Encouraged

In lieu of using cash advances, departments/agencies may use purchasing cards for employee travel expenses, or should encourage employees to record travel expenses on personal credit cards and seek direct reimbursement using a Mileage and Other Expenses Claim form, unless the use of credit cards is not feasible for a given situation. Eliminating the need for a cash advance facilitates record-keeping and reduces the portion of revolving fund cash tied up in cash advances.

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Cash Difference Fund

SUBJECT:

CASH DIFFERENCE FUND
NUMBER:

C.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: October 1, 1979
REVISED: 4/83, 2/2000

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

The Board of Supervisors may establish a cash difference fund for an officer of the County pursuant to Government Code Sections 29370 through 29390.1. The accountability for the use of cash difference funds is to the Board of Supervisors.

Applications to establish, increase, reduce, discontinue, or replenish cash difference funds are made to the County Auditor-Controller, who is authorized to perform the functions of the Board under Government Code Section 29370.1 and Board Resolution Number 99-135 dated April 6, 1999.

1.1 Purpose

The purpose of this procedure is to assist officers of the County to establish, increase, reduce, replenish, and discontinue cash difference funds in conformance with requirements set forth in Government Code Sections 29370 through 29390.1.

1.2 Authority

Authority
Subject

California Government Code Sections 29370 through 29390.1
Establishment and replenishment of county cash difference funds.

Board of Supervisors' Resolution No. 83-354 dated March 8, 1983
Authorizes Auditor-Controller to perform the functions of the Board to replenish cash difference funds.

Board of Supervisors' Resolution No. 99-135 dated April 6, 1999
Authorizes Auditor-Controller to perform the functions of the Board to establish, increase, reduce and discontinue cash difference funds.

1.3 Definitions

1.3.1 Officer

"Officer of the County", includes any elective or appointed officer of the County, and any person in charge of any office, department, service, or institution of the County, or a division or branch thereof, and as enumerated in Section 24000 of the Government Code.

1.3.2 Cash Shortage

Deficits occurring from employee mishandling of cash receipts or disbursements. These deficits occur during daily operations such as accepting money and making change in over-the-counter transactions.

1.3.3 Cash Loss

Loss or deficit occurring due to a theft or mysterious disappearance.

2. PROCEDURE

2.1 Establishing or Increasing Fund

2.1.1 Written Request

An officer wishing to establish or increase a cash difference fund shall send a written request to the Auditor-Controller General Ledger Unit, stating the need for the fund or the reason for the increase, and the amount requested.

2.1.2 Auditor-Controller Review

The Auditor-Controller reviews the request for County procedural and operating rules compliance. If the request is approved, the Auditor-Controller authorizes the issuance of a check establishing or increasing the fund. The Auditor-Controller assesses the size of requests for increases based on prior activity for cash difference fund replenishments.

2.1.3 Internal Control Weaknesses

The Auditor-Controller may elect not to increase the fund of a department or agency with material cash difference fund internal control weaknesses until such weaknesses are corrected. Frequent replenishments for employees with chronic shortage problems may constitute evidence of internal control weaknesses.

2.2 Use of Fund

2.2.1 Increase Amount Tendered

The cash difference fund may be used to increase an amount tendered to any officer on an account when an underpayment of $10.00 or less exists.

NOTE: Each County officer should analyze each situation and determine if use of cash difference funds for this purpose is both cost-effective and beneficial to the County. A County officer has the prerogative of not using the fund for this purpose or for setting a limit less than the $10.00 maximum.

2.2.2 Reimburse Cash Shortage

The cash difference fund may be used to reimburse a cash shortage of County funds. The reimbursement shall not exceed the amount in the cash difference fund.

NOTE: If the shortage exceeds the cash on hand in the cash difference fund, a written application to the Auditor-Controller can be made to have the fund replenished. (See Section 2.3 following.)

2.2.3 Not Used to Replenish Cash Losses

Cash difference funds cannot be used to replenish cash losses. Any evidence of burglary, theft or mysterious disappearance of County funds should be immediately reported to the Sheriff-Coroner or appropriate police agency. For additional requirements, refer to County Accounting Procedure (CAP) No. C.3., "Cash Losses."

2.2.4 Report to Officer

In accordance with Government Code Section 29373 in a department or agency with a cash difference fund, the director or department head shall be provided with a written report setting forth the exact sum of any cash deficit or overage by the close of each business day. The report shall be prepared by the person who receives and disburses money placed in his or her custody as directed by law or by official authority.

2.3 Replenishment of Fund

2.3.1 Application for Replenishment

Application for replenishment shall be in writing to the Auditor-Controller. Each application must include the following:

Itemization of each cash shortage and/or underpayment.

Dates of occurrences.

Names of employees whose accounts were reimbursed from the fund.

2.3.2 Statements Included in Replenishment Application

Individual cash shortages of $10.00 or more must reference the following applicable statements:

Circumstances of the deficit have been reviewed by management and there is no evidence of fraud or gross negligence.

Where necessary, specific steps have been taken to modify procedures and increase control to preclude similar instances from occurring. (Briefly describe new or revised procedures.)

Individuals accountable for cash shortages have not had a history of cash shortages, or if they have had a history, they have received additional counseling and training.

2.3.3 Authorized Signature

Application for replenishment must be signed by the department/agency head, or, in case of his/her absence, by the Chief Deputy or an Assistant Director.

2.3.4 Auditor-Controller Review

The Auditor-Controller reviews the application for replenishment for compliance with procedures and determines the amount of replenishment. If the Auditor-Controller does not concur with the application, it is returned to the department/agency for correction or completion.

2.3.5 Issuance of Check

After concurrence, the Auditor-Controller issues a check to the officer who requested replenishment. The replenishment is charged to expenditure Object Code 1701, "Cash Difference," in the fund/agency of the department/agency in which the shortages were incurred.

2.3.6 Amount of Replenishment

An application for replenishment should not exceed the total amount of the cash difference fund. Applications should be prepared considering the time required for review and check preparation.

2.3.7 Recovery of Shortage

If a shortage for which the cash difference fund has already been replenished is recovered, the department or agency shall restore this amount into the cash difference fund and reduce the subsequent request for replenishment. Each such recovery should be noted as a separate item on the request for replenishment.

2.4 Discontinuance of Fund

2.4.1 Written Request

The officer may send a written request to the Auditor-Controller General Ledger Unit to discontinue the cash difference fund. Upon receipt of the request, the Auditor-Controller directs the officer or designee to deposit any unused balance of the cash difference fund into the County treasury and to submit an accounting for the portion of the fund that was used, in accordance with Government Code Section 29379.

2.4.2 Deposit of Unused Balance

The deposit of the unused balance of the cash difference fund is recorded in Balance Sheet Account Code 8030, "Cash Difference Funds," on a deposit order. The deposit order shall be prepared in accordance with CAP No. C.4., "Deposits."

2.4.3 Final Accounting

The officer submits a final accounting report with the information required for replenishments as described in Sections 2.3.1 through 2.3.3 of this Procedure. The report must account for any remaining balance of the cash difference fund that is not deposited according to Section 2.4.2 of this procedure.

Upon receipt of the final accounting from the officer, the Auditor-Controller prepares a journal voucher to record the used portion of the fund as expenditures in Object Code 1701, "Cash Difference," with an offsetting entry reducing Balance Sheet Account Code 8030, "Cash Difference Funds."

2.5 Transfer of Fund

The cash difference fund will be transferred whenever a change in County officers occurs and the outgoing and incoming officers are both available and willing to sign the transfer request.

2.5.1 Statement of Assets Transferred

The outgoing and incoming officers submit a Statement of Assets Transferred to the Auditor-Controller General Ledger Unit to transfer the cash difference fund and other assets from the outgoing to the incoming officer. Both officers must sign the Statement. See CAP No. M.4., "Requirements of Elected Officials Assuming or Leaving Office."

2.5.2 Auditor-Controller Approval of Transfer

Upon receipt of the Statement of Assets Transferred, the Auditor-Controller notes the transfer in the cash difference fund records. A written confirmation of the transfer is sent to each of the affected officers.

2.6 Termination of Officer

The cash difference fund must be discontinued whenever an outgoing officer's employment is terminated or the outgoing officer is unavailable or unwilling to sign a Statement of Assets Transferred Form as described in CAP No. M.4.. In such circumstances, the final deposit and the final accounting are submitted by the incoming or interim officer.

2.7 Safeguarding the Fund

Funds granted to an officer must be retained in safekeeping equipment within the department/agency or in a bank checking account, or both. The County Treasurer will normally assist in establishing a checking account to avoid bank charges.

2.8 Annual Report

The Auditor-Controller shall render a written report and give an account to the Board of Supervisors of cash difference funds used at the end of each fiscal year and at such other times as the Board directs or the Auditor-Controller determines is necessary. The Annual Report will contain a summary of cash difference fund establishments, replenishments, increases, reductions, transfers, and discontinuances requested and received by each department/agency.

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Cash Losses

SUBJECT:

CASH LOSSES
NUMBER:

C.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENT, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 1/01/84
REVISED: 5/24/88, 6/99, 6/01, 4/05

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

County officers may be relieved of accountability for a cash loss in any of their accounts pursuant to Government Code Sections 29390 through 29390.1. Officers' accountability for cash losses is to the Board of Supervisors. The Auditor-Controller is authorized to perform the functions of the Board of Supervisors in providing relief of accountability and replenishing losses not exceeding $2,500 in County funds. For losses exceeding $2,500 in County funds, the Auditor-Controller submits applications for replenishment to the Board of Supervisors.

All requests for replenishment of cash losses are made in writing to the Auditor-Controller. The Auditor-Controller forwards copies of all reported cash losses to the Internal Audit Department. Upon receipt of cash loss information, the Auditor-Controller reviews the adequacy of the department/agency's request and the circumstances of the loss, and determines whether an investigation is needed. Once appropriate investigative steps have been completed, the Auditor-Controller may provide relief of accountability and replenishment of the loss or may submit a request to the Board.

1.1 Purpose

1.1.1 Cash Loss

The purpose of this procedure is to assist County officers with replenishing and obtaining relief of accountability for a loss in any of their accounts as allowed by Government Code Sections 29390 through 29390.1.

1.1.2 Cash Difference Fund

This procedure does not apply to the establishment, use, replenishment, or discontinuance of cash difference funds, which are used to reimburse cash shortages. For additional information, refer to County Of Orange Accounting Manual Procedure C-2, Cash Difference Fund.

1.2 Authority

1.2.1 Government Code Sections 29390 and 29390.1

California Government Code Sections 29390 and 29390.1 provide for the Board of Supervisors to relieve officers of accountability for cash losses and to delegate the function to the Auditor-Controller.

1.2.2 Board Resolutions

Board of Supervisors Resolutions No. 83-354, dated March 8, 1983, and No. 05-003, dated February 15, 2005, authorize the Auditor-Controller to perform the functions of the Board to replenish cash losses not exceeding $2,500.

1.3 Definitions

1.3.1 Officer

"Officer of the County" includes any elective or appointive officer of the County, and any person in charge of any office, department, service, or institution of the County, or a division or branch thereof, and as enumerated in Section 24000 of the Government Code.

1.3.2 Cash Shortage

Cash shortages are different than cash losses; they are deficits that occur from employee mishandling of cash receipts or disbursements. These deficits may occur during daily operations such as accepting money and making change in over-the-counter transactions. Cash shortages are covered by Procedure C-2, Cash Difference Fund.

1.3.3 Cash Loss

Losses or deficits occurring due to a theft or mysterious disappearance or from an unintentional receipt of counterfeit money.

1.3.4 Reimbursement

As used in this procedure, the term "reimbursement" encompasses the Auditor-Controller recordation of entries to book revenue and offsetting expenditure amounts, and the check payments to replenish cash fund losses (e.g., losses from petty cash).

2. PROCEDURE

2.1 Relief of Accountability for Cash Losses of Less Than $1,000

2.1.1 Immediate Report to Sheriff/Law Enforcement and CEO/Risk Management

Visual or suspected evidence of burglary, theft, or mysterious disappearance of County funds should be immediately reported to the Sheriff or the appropriate law enforcement agency and CEO/Risk Management. Any cash loss, regardless of amount, should be reported to CEO/Risk Management. After notifying the Sheriff (or appropriate police agency), the department/agency must contact CEO/Risk Management. The County purchases a number of commercial insurance policies, and deductibles vary. Additionally, smaller losses at one point in time may develop into larger losses. Therefore, it is important to report the loss to CEO/Risk Management because it may be covered, partially or entirely, by commercial insurance. Comments regarding insurance coverage should be addressed in the department/agency's letter to the Auditor-Controller (see Section 2.1.5).

2.1.2 Counterfeit Bills

Counterfeit bills should be immediately reported and transmitted to the Department of the Treasury/United States Secret Service. It will provide a written receipt for the counterfeit bill(s). The department/agency should contact the County Treasurer's Office for the address of the Department of the Treasury. If a bank identifies counterfeit bills in a County deposit, it forwards them directly to the Secret Service and deducts the amount from the department/agency's deposit.

2.1.3 Employee Fraud or Gross Negligence

If employee fraud or gross negligence is suspected, separate action is required. The department/agency should obtain as much relevant information as possible regarding the incident, and if further investigation is warranted, it should inform the appropriate departments (e.g., District Attorney, Sheriff, local law enforcement agency, Internal Audit Department, CEO/Risk Management, and County Executive Office). At a minimum, it should notify the District Attorney and the Sheriff (or appropriate law enforcement agency). They can suggest additional steps to be taken.

2.1.4 Restitution for Thefts of Funds

Occasionally departments/agencies receive restitution for their cash losses. Even when restitution appears to be available and forthcoming, departments/agencies should submit requests for relief of accountability. They should not postpone their requests until after all restitution payments have been received. Once a loss has been investigated by a department/agency and by other, appropriate agencies, it should promptly submit its request for relief of accountability and reimbursement to the Auditor-Controller (see Section 2.1.5). The amount specified for relief and reimbursement should be the amount of unrecovered loss (i.e., original cash loss minus insurance recoveries and minus restitution payments already received). This amount should disregard and not be reduced for possible future restitution. When the Auditor-Controller prepares final documents for relief of accountability and reimbursement of loss, it will contact the department/agency to obtain an updated amount of unreimbursed loss.

After obtaining relief of accountability and reimbursement, departments/ agencies may receive additional restitution payments. If so, they should account for these restitution payments as revenue.

2.1.5 Submittal of Documentation to Auditor-Controller

To obtain relief of accountability and reimbursement for a cash loss, departments/agencies must prepare and submit a letter to the Auditor-Controller's Cost Studies/Mandated Audits Unit describing the circumstances of the loss. The letter must be signed by the department/agency head, or in his/her absence, by the Chief Deputy or Assistant Director. The letter must reference the following:

Management has reviewed circumstances of the loss, and there is no evidence of employee fraud or gross negligence. Or, if there is employee fraud and/or gross negligence, describe the steps taken to recover County funds.

The unit/section in which the loss occurred does not have a history of losses. Or, if it has a history of cash losses, the department/agency has provided employees of the unit/section with additional counseling or training.

The loss did not involve the department's executive personnel.

The loss is not reimbursable by insurance.

Where necessary, procedures have been modified and controls increased to help preclude similar instances from occurring in the future. Specifically describe any new or revised procedures the department has implemented.

2.1.6 Auditor-Controller Action

Upon receipt of a department/agency's written request and cash loss information, the Auditor-Controller reviews its adequacy. The Auditor-Controller provides a copy of the request to the Internal Audit Department.

2.1.7 Relief of Accountability and Replenishment of Loss

Based upon the department/agency's remediation of related control weaknesses, the Auditor-Controller grants relief of accountability to the officer and replenishes the cash loss. For most reimbursements of deposit or revenue losses, a journal voucher is prepared, charging expenditure object 1702, "Cash Losses," of the department/agency that incurred the loss and crediting the deposit account or the revenue source. For most reimbursements of petty cash losses, a check is prepared charging the department/agency's expenditure object 1702 and crediting cash. The Auditor-Controller's General Ledger Unit sends a copy of the relief of accountability statement and of the replenishment document (e.g., journal voucher or request for check) to both the department/agency and the Internal Audit Department. See Procedure B-2, Discharge of Accountability for Collections, for additional information regarding relief of accountability.

2.2 Relief of Accountability for Cash Losses of $1,000 to $2,500

Procedures for handling cash losses of $1,000 to $2,500 correspond to those for relief of accountability for cash losses of less than $1,000 (see Section 2.1), with the following additional requirements:

2.2.1 Submittal of Documentation to Auditor-Controller

In addition to documentation required under section 2.1.5, departments/agencies must provide the Auditor-Controller with copies of any Sheriff or police reports and with other internal department documentation regarding the cash loss.

2.2.2 Request for Investigation by the Internal Audit Department

The Auditor-Controller requests that the Internal Audit Department investigate the incident. The Internal Audit Department reviews documents and correspondence pertaining to the loss and interviews employees and/or department/agency management. Depending on the circumstances and the amount of the loss, the Internal Audit Department may visit the site where the loss occurred. If controls are determined to be inadequate, the Internal Audit Department makes specific recommendations to the department/agency to strengthen controls and provides a copy of the recommendations to the Cost Studies & Mandated Audits Unit. The department/agency provides a letter to the Internal Audit Department, with a copy to the Cost Studies & Mandated Audits Unit, describing its implementation of the recommendations or of satisfactory alternatives to rectify identified control weakness(es).

2.2.3 Internal Audit Department Opinion and Recommendation

The Internal Audit Department provides the Auditor-Controller with an opinion on the adequacy of the department/agency's cash controls in the area where the loss occurred. It also recommends whether the Auditor-Controller should provide relief of accountability and approval for replenishing the loss.

If the Internal Audit Department does not recommend relief of accountability and reimbursement of the loss, the department/agency may need to prepare an ASR to the Board of Supervisors.

2.2.4 Auditor-Controller Action

The Auditor-Controller, upon receiving the Internal Audit Department's recommendation, issues a payment or prepares a journal voucher. The Auditor-Controller's General Ledger Unit sends a copy of the relief of accountability statement and of the replenishment document (e.g., journal voucher or request for check) to both the department/agency and the Internal Audit Department.

2.3 Relief of Accountability for Cash Losses in Excess of $2,500

Procedures for handling cash losses in excess of $2,500 correspond to those for relief of accountability for cash losses of $1,000 to $2,500 and (see Section 2.2), with the following additional requirements:

2.3.1 District Attorney Review

The Auditor-Controller submits cash loss documentation to the District Attorney for review and evaluation as to whether the loss resulted from employee fraud or gross negligence. The results of the District Attorney's review are submitted along with other documentation to the Internal Audit Department for its review and recommendation.

2.3.2 Preparation of ASR Approving Relief of Accountability/Loss Reimbursement

Based on the Internal Audit Department recommendation to grant relief, the Auditor-Controller's Cost Studies & Mandated Audits Unit prepares an ASR. The ASR includes a brief description of additional controls established by the department/agency, or a statement regarding adequacy of existing controls, and the following two recommended actions:

Relieve the County officer of accountability for the loss.

Approve reimbursement for the loss and direct the Auditor-Controller to issue a payment or prepare a journal voucher.

If the Internal Audit Department does not recommend relief of accountability and reimbursement of the loss, the department/agency may need to prepare its own ASR to the Board of Supervisors.

2.3.3 Board of Supervisors Meeting

The Cost Studies & Mandated Audits Unit informs the department/agency of the scheduled date for the agenda item. A representative of the department/agency where the loss occurred must be present at the Board of Supervisors meeting to answer any questions regarding the incident.

2.3.4 Board Action

The Board of Supervisors may provide relief of accountability and authorize the Auditor-Controller to reimburse the officer.

2.3.5 Auditor-Controller Action

The Auditor-Controller, on receipt of a certified copy of the Board's action granting relief, issues a payment or prepares a journal voucher. The Auditor-Controller's General Ledger Unit sends a copy of the relief of accountability statement and of the replenishment document (e.g., journal voucher or request for check) to both the department/agency and the Internal Audit Department.

2.4 Auditor-Controller Reporting of Cash Loss Reimbursements

2.4.1 Quarterly Reporting Requirements

After a calendar quarter during which the Auditor-Controller reimburses an individual cash loss that exceeds $1,000, it prepares a written report to the Board of Supervisors giving an account of each cash loss reimbursement that exceeded $1,000.

2.4.2 Annual Reporting Requirements

The Auditor-Controller prepares a written report to the Board of Supervisors giving an account of cash loss reimbursements it made during the fiscal year. This report shall be made after the end of each fiscal year and at such other times as the Board of Supervisors directs or the Auditor-Controller deems necessary.

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Deposits

SUBJECT:

DEPOSITS
NUMBER:

C.4.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 12/83
REVISED: 02/01, 01/12

singed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions

2. INTERNAL CONTROLS

2.1 Segregation of Duties
2.2 Accountability
2.3 Deposit Order Verification by Departments/Agencies
2.4 Endorsement of Checks
2.5 Check Payee / Payor Identification
2.6 Counterfeit Bills
2.7 Payment/Electronic Cards
2.8 Timely Deposits - Special Circumstances

3. PREPARING THE DEPOSIT ORDER

3.1 Deposit Order Sections

4. TRANSMITTING DEPOSIT ORDERS

4.1 Transmitting Department or Agency
4.2 Auditor-Controller

5. BANK DEPOSIT

5.1 Armored Car Messenger Service
5.2 Delivery to Treasurer-Tax Collector
5.3 Direct Deposit at Local Bank Branch
5.4 Alternate Deposit Method

6. DEPOSIT ORDER CODE CORRECTIONS

EXHIBITS

Exhibit I - Deposit Order Form

Exhibit II - Department /Agency Deposit Order Form after Fax Transmittal

Exhibit III - Deposit Order Code Correction Memo

Exhibit IV - County of Orange Payment Card Industry Data Security Standards Policy

SUBJECT:

DEPOSITS
NUMBER:

C.4.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 12/83
REVISED: 02/01, 01/12

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

All monies collected or received by County departments/agencies shall be deposited, whenever practical, with the County Treasurer-Tax Collector, or other legal depository, no later than the working day following the date received, except for trust fund monies which must be deposited on the date received according to law. If it is not practical to deposit monies by the working day following the date received, then deposits should be made at least monthly or whenever $100 is accumulated, whichever occurs first. Special circumstances, such as remote locations, may warrant a larger accumulation of monies before a deposit is practical.

1.1 Purpose

To provide adequate internal control over all County receipts and to maximize interest earnings and cash flow.

1.2 Authority

1.2.1 Board of Supervisors' Resolution No. 82-162

Board of Supervisors' Resolution No. 82-162, dated February 2, 1982, authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors.

1.2.2 Board of Supervisors' Resolution No. 94-1128

Board of Supervisors' Resolution No. 94-1128 allows T-TC to accept Discover Card for property taxes.

1.2.3 Board of Supervisors' Resolution No. 96-575

Board of Supervisors' Resolution No. 96-575 approves County use of Master Card, Visa, and debit cards for the various reasons allowed in the Government Code Section 6159 and Revenue & Tax Code 2511.1.

1.2.4 Board of Supervisors’ Resolution No. 98-436

Board of Supervisors’ Resolution No. 98-436 approves T-TC accept American Express.

1.2.5 Minute Order dated June 13, 2000; Agenda Item 74

Minute Order dated June 13, 2000; Agenda Item 74 approves JWA to accept American Express.

1.2.6 Board of Supervisors’ Resolution No. 02-095

Board of Supervisors’ Resolution No. 02-095 approves use of internet for payment cards under T-TC’s Wells Fargo agreement.

1.2.7 Government Code Section 27008

Government Code Section 27008 requires the certificate of the auditor for all deposits made in the County Treasury.

1.2.8 Government Code Section 6159

Government Code Section 6159 authorizes Counties to accept payment cards and allows fee to be charged upon Board of Supervisors approval.

1.2.9 Revenue & Tax Code 2511.1

Revenue & Tax Code 2511.1 authorizes Counties to accept payment cards for property taxes and allows fee to be charged upon Board of Supervisors approval.

1.3 Definitions

1.3.1 Monies

Includes currency, coins, checks, warrants, money orders, payment/electronic cards, etc.

1.3.2 Initial Collection Records

Handwritten cash receipt copies (refer to County Accounting Procedure (CAP) No. C.5., Handwritten Cash Receipts), calculator tapes or customized forms documenting County receipts.

1.3.3 Forms

County of Orange Deposit Order Form (See Exhibit I.) This 4-part form is distributed as follows:

White - Tax Collector

Goldenrod - Auditor-Controller official file copy

Canary - Department/Agency official file copy

Pink - Auditor-Controller memo copy

1.3.4 Validated Deposit Order

Canary-colored copy returned to department/agency by Treasurer-Tax Collector.

1.3.5 County Accounting and Personnel System/Advantage Financial System
(CAPS AFNS)

County accounting system used to access current financial information through the use of various tables.

1.3.6 County Accounting Procedure (CAP)

Accounting procedures established by the Auditor-Controller.

2. INTERNAL CONTROLS

As stated in CAP No. S.2., Internal Control Systems, "All County departments/agencies shall maintain effective internal control systems as an integral part of their management practices. This is because management has primary responsibility for establishing and maintaining the internal control system."

2.1 Segregation of Duties

Responsibilities for receiving and depositing monies should be segregated between several employees to establish internal control over collections. An essential segregation of duties is having someone other than the employee receiving monies preparing the Deposit Order. Similarly, the person verifying the final Deposit Order should not be the person who prepared it. (See Section 2.3 of this Procedure.) Another essential segregation of duties is having a supervisor or individual with no other cashiering or depositing duties comparing each amount on the Deposit Order to the initial collection records, to help ensure that all collections received were deposited.

2.2 Accountability

Accountability should be established when monies are initially collected or received by preparing some type of Initial Collection Record (examples include receipt forms, lists and calculator tapes.) This Initial Collection Record should be signed and dated by the person receiving the monies. Over-the-counter receipts or field collections should be documented by the issuance of a County of Orange handwritten cash receipt or a cash register receipt. Mail collections should be documented by the preparation of a detailed listing by an employee with no other deposit or cashiering responsibilities.

Additionally, when monies are subsequently transferred between employees during the collection and deposit process, the employees should document the transfer of accountability in writing. It should be stressed to employees that it is to their own benefit to verify the amounts being transferred to them, prior to signing for the funds. In the event of a loss, the transfer of accountability provides management with a method to determine where, when and possibly how the loss occurred.

2.3 Deposit Order Verification by Departments/Agencies

Upon receipt of the validated Deposit Order, the department/agency shall compare it to the original Deposit Order and to the Initial Collection Records to ensure that no unauthorized changes were made and that all collections were deposited. An independent person with no receipt or Deposit Order preparation duties shall perform this comparison.

2.4 Endorsement of Checks

All negotiable instruments, such as checks, warrants, and money orders, should be endorsed with a restrictive endorsement stamp immediately upon receipt.

2.5 Check Payee / Payor Identification

The payee on each check should be the County of Orange, a County department/agency name, or a department head/agency director. Each check received over the counter should have the payor's name, address, and telephone number imprinted. The person accepting a check should write payor identification such as driver's license number on the check. All of this information provides documentation that may be needed for subsequent collection efforts.

2.6 Counterfeit Bills

Some departments/agencies have incurred cash losses because they unknowingly have accepted counterfeit bills. Departments/agencies should use the most effective, practical counterfeit detection devices available to prevent acceptance of counterfeit bills.

When the Treasurer-Tax Collector is notified by the bank of a counterfeit bill, the accepting department/agency will be charged for the loss. See CAP No. C.3., Cash Losses, for relief of accountability and replenishment procedures for losses attributable to counterfeit bills.

2.7 Payment/Electronic Cards

In order to prevent fraud and protect cardholder information, any department/agency (merchant) within the County of Orange that processes credit card transactions must maintain compliance with the Payment Card Industry Data Security Standards (PCI DSS).

Failure to comply with PCI Data Security Standards (See Exhibit IV) can result in losing the ability to process card payments, being assessed hefty fines imposed by card associations, and/or violation of federal or state law.

While PCI DSS compliance is the responsibility of each merchant, the overall program is managed by the County Treasurer. Compliance will be verified and monitored by the Treasurer’s Office, regardless of which processing bank the agency uses. Please contact the Treasurer’s Cash Management division for further information and documentation at cashmgmt@ttc.ocgov.com.

2.8 Timely Deposits - Special Circumstances

2.8.1 Remote Locations

Each department/agency making a deposit from a remote location should analyze the cost of processing the deposit in employee time and mileage compared to the risk of loss, lost interest earnings, and decreased cash flow, and determine the optimum deposit amount for each remote location.

Deposits at these locations should be made at least monthly, or whenever the optimum amount is accumulated, whichever occurs first.

2.8.2 Other Special Circumstances

Special circumstances, other than remoteness of location, may warrant an accumulation of monies greater than the $100 stated in the Policy section before a deposit is practical. Such circumstances should be reviewed with the Auditor-Controller before a decision is made to use an amount greater than $100.

3. PREPARING THE DEPOSIT ORDER

Deposit Orders should be prepared to record the receipt of monies. Deposit Orders should not be used to record movement of monies that have previously been recorded by a Deposit Order. Movement of monies should be recorded by a journal voucher prepared in accordance with CAP No. J.3., Journal Voucher Preparation and Review. Therefore, negative (bracketed) entries on deposit orders should be a rarity. Only refunds or reimbursements should be recorded with a bracketed entry on deposit orders. Additionally, these types of transactions should be fully explained in the explanation area of the deposit order.

To help ensure that the deposit order information is input correctly, the deposit order information should be legible. The Deposit Order can be prepared using a photocopied template. The information should be printed or typed neatly, in large, dark font. A font size of at least 10 should be used for computer-generated deposit orders.

3.1 Deposit Order Sections

Following the three distinct sections of the Deposit Order (See Exhibit II,) the following information should be included:

3.1.1 The Upper Section

The "Agency/Department" box at the top of the Form shall display the name of the department/agency. The "Agency Code" box at the top of the Deposit Order Form is used to identify the preparing agency (e.g., 003 for Auditor-Controller.) The Auditor-Controller Administrative Services Unit will assign the "Deposit Number."

3.1.2 The Middle Section

3.1.2.1 General Description

The "General Description" area at the left of the Form shall include a brief description of the type and source of monies being deposited for each line on the Deposit Order. If the Deposit Order Form can accommodate the information, the description should include check number, invoice number, invoice payor, and date received, if different than date of deposit, etc.

Include any invoice numbers for accounts receivable in the "General Description" area.

3.1.2.2 Account Coding

Following the Deposit Order columns, the proper account coding for a deposit order should include:

COLUMN REVENUE SOURCE CODES BALANCE SHEET
(B/S ACCT) CODES

FUND Required Required

AGCY Required Required

ORG Required for Org Code Users Do Not Use

ACTV Optional Optional

REV SOURCE Required Do Not Use

SUB REV Optional Do Not Use

JOB Required for Job Users Do Not Use

REPT CATG Do Not Use Optional

B/S ACCT Do Not Use Required

OBJ Do Not Use Do Not Use

SUB OBJ Do Not Use Do Not Use

All payments received for County invoices originally booked as accounts receivable should be coded to:

Balance Sheet Account Code 8200, "Accounts Receivable, Misc. A/C," for invoices billed to individuals or businesses, or

Balance Sheet Account Code 8470, "Due from Other Governmental Agencies-A/C," for governmental invoices, or

Other appropriate Accounts Receivable accounts.

County General agencies (001-100) should use Fund 100. Trust fund agencies (301-399) should use Fund 300. Other agencies should use the appropriate funds for the monies being deposited.

3.1.2.3 Amounts

Record the amount to be deposited for each line of account coding. The preparer of the Deposit Order should verify that the total agrees to the total of the Initial Collection Records.

The "Total Deposit" should equal the sum of the individual amounts listed in the "Amount" column and should be mathematically correct.

3.1.2.4 Explanation

The "Explanation" area at the bottom of the Deposit Order Form should display additional information about the deposit, such as an explanation if the date of deposit is different from the date of receipt. Any additional pertinent information should also be included in this area.

3.1.3 The Lower Section

In this section are boxes for the preparer's name and phone number, and a box for a supervisor to document that he/she reviewed the document for accuracy and completeness.

The Treasurer-Tax Collector will validate the deposit order and an Auditor-Controller Deputy will sign the Deposit Order in the designated area at the bottom of the form.

4. TRANSMITTING DEPOSIT ORDERS

4.1 Transmitting Department or Agency

The department/agency forwards the completed Deposit Order to the Auditor-Controller. Deposit Orders must be received in the Auditor-Controller General Ledger Unit before 1:00 p.m. Deposit Orders received after that time may not be included in the accounting system processing until the next day.

4.1.1 Deposit Order Transmittal

The preferred method of transmittal is via fax to the Auditor-Controller General Ledger Unit. If the Deposit Order was transmitted via fax, and to prevent against duplicate entry, the department/agency should make a notation on the original Deposit Order form stating that it was "Faxed" along with the fax date and time. (See Exhibit II.) The original Deposit Order form should not be sent to the Auditor-Controller or the Treasurer-Tax Collector but rather should be retained by the department/agency.

Prepared Deposit Orders can also be hand-delivered to the Auditor-Controller Administrative Services Unit, or monies with adequate account coding can be hand-delivered to the Auditor-Controller Accounts Receivable Unit, where the monies will be included in the Accounts Receivable daily deposit.

The Treasurer-Tax Collector will return the canary-colored copy of the processed Deposit Order to the departments/agencies confirming the deposit.

4.1.2 Duplicate Deposit Orders

Departments/agencies must not submit the same Deposit Order twice. If a department/agency is not certain whether a Deposit Order has already been transmitted, they should contact the Auditor-Controller General Ledger Unit before transmitting it again.

If the total dollar amount of a Deposit Order is determined to be incorrect and the current month is still in progress, a written explanation of the correction should be sent to Auditor-Controller General Ledger Unit to process. If the month has passed or if the correction is for anything other than the total dollar amount (also see Section 6,) a written explanation of the correction should be sent to the Auditor-Controller, Accounts Receivable Unit in the format shown in Exhibit III.

4.1.3 Deposit Order Log

Departments/agencies are encouraged to maintain a log of their Deposit Orders and to reconcile the log to the monthly and semi-monthly General Ledgers or regularly to the FLX2 and FLX4 tables in CAPS AFNS, to help ensure that their deposits were recorded properly and accurately.

4.2 Auditor-Controller

The Auditor-Controller records the receipt of the Deposit Order on a log that lists the date, transmitting department/agency, and total amount of the deposit. The Auditor-Controller creates a multi-part Deposit Order Form by photocopying the faxed copy, assigns a sequential identification number to the Deposit Order, and submits the Deposit Order for data entry. The Auditor-Controller retains the pink-colored copy and forwards the other copies to the Treasurer-Tax Collector for validation and further distribution.

5. BANK DEPOSIT

The department/agency places all monies and bank deposit slips in a sealed moneybag. That moneybag can then be sent to the bank using one of the following methods:

5.1 Armored Car Messenger Service

The preferred method for transporting County funds for deposit is the use of an armored car. An armored car messenger picks up the sealed moneybag and delivers the bag to the bank. Arrangements for an armored car messenger should be made with the Treasurer-Tax Collector.

5.2 Delivery to Treasurer-Tax Collector

The department/agency can deliver the sealed bag directly to the Treasurer-Tax Collector cash counter. It is located in Room G58, Building 12 in the Civic Center complex.

5.3 Direct Deposit at Local Bank Branch

An alternative to an armored carrier pickup or delivery to the cash counter is delivery of the deposit directly to a local bank branch, currently the Bank of America. It does not require a sealed bag; however, for security purposes one may be used.

5.4 Alternate Deposit Method

If the department/agency has infrequent deposits, the monies can be hand-delivered to Auditor-Controller Accounts Receivable Unit as noted above in Section 4.1.1.

6. DEPOSIT ORDER CODE CORRECTIONS

Unless authorized by the Auditor-Controller Accounts Receivable Unit, all journal voucher entries to record Deposit Order coding corrections shall be prepared by the Auditor-Controller Accounts Receivable Unit. The department/agency requesting the correction should send a memo in the format shown on Exhibit III to request the correction.

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Handwritten Cash Receipts

SUBJECT:

HANDWRITTEN CASH RECEIPTS
NUMBER:

C.5.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 7/77
REVISED: 04/01

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

If a cash register is not being used, a handwritten cash receipt shall be issued to the payor of money whenever money is received directly from such payor by a County department, agency or district. This policy is not intended to apply to monies received through the mail.

In accordance with County Accounting Procedure (CAP) #C.4., Deposits, all monies collected or received by County departments/agencies shall be deposited, whenever practical, with the County Treasurer-Tax Collector, or other legal depository, no later than the working day following the date received, except for trust fund monies which, by law, must be deposited on the date received.

1.1 Purpose

To provide for control and accountability over monies received, and properly record remittances when cash registers are not available. To define the uniform procedures for approving, stocking, issuing, and accounting for authorized handwritten cash receipt forms.

1.2 Authority

Board of Supervisors' Resolution No. 82-162, dated February 2, 1982 authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors.

1.3 Definitions

1.3.1 Monies

Includes currency, coins, checks, warrants, money orders, etc.

1.3.2 Forms

County of Orange Cash Receipt form (F850-58.2), a three-part form. (See Exhibit I.)

Special cash receipt forms approved by the fiscal manager of a department/agency.

2. RESPONSIBILITIES

2.1 Ordering Cash Receipt Forms

2.1.1 Cash Receipt Forms

The Uniform Cash Receipt Form F850-58.2, (see Exhibit I), approved by the Auditor-Controller, shall be used to the extent practical. If a special cash receipt form is required, the approval of the Auditor-Controller Administrative Services Unit shall be obtained before such form will be ordered by the Public Facilities and Resources Department/Publishing Services Division (Publishing Services).

2.1.2 Ordering Cash Receipt Forms

All cash receipt forms shall be ordered through Publishing Services. Departments/agencies shall prepare a memo and a printing requisition to Publishing Services requesting the printing of the cash receipts forms.

2.1.3 Publishing Services Responsibilities

Publishing Services shall maintain a listing of previously issued cash receipt forms and shall issue requested forms in sequential order.

2.2 Agency/Departmental Custodianship

2.2.1 Custodian

One employee from each department/agency/district shall be appointed as custodian of the cash receipt forms. It is preferable that the custodian has no other cash receipting duties. A back-up custodian can be appointed at the discretion of the department/agency/district.

2.2.2 Duties of the Custodian

Receive all cash receipt forms from Publishing Services.

Maintain a record of all used and unused cash receipt forms (see Exhibit II). This record shall include the following information:

Date received from Publishing Services.

Beginning serial number.

Ending serial number.

Name and signature of the employee issued the cash receipt forms.

Initials of the custodian issuing the forms.

Date returned.

Signature or initials of the employee returning the forms.

Initials of the custodian receiving the returned forms.

Issue cash receipt forms in sequential order only to authorized employees.

Collect all used cash receipt forms from the employee to whom they were issued before issuing any additional unused receipt forms to the employee.

Safeguard forms and inventory records.

Store both the unused and completed cash receipt forms in a secure location accessible only to the custodian.

Store the record of all cash receipt forms in a location, separate from the cash receipt forms, accessible only to the custodian.

Have an inventory of the cash receipt forms performed periodically by an employee with no custodial or cashiering duties. (See CAP #S.2., Internal Control Systems, for further discussion of segregation of duties.)

2.3 Accountability

The authorized employee receiving unused cash receipt forms shall use, control, and safeguard the receipts until returned to the custodian and relieved of accountability. Forms shall be issued to employees only on an as-needed basis. Any forms that will not be used in the future are to be returned to the custodian.

2.4 Uses

Cash receipt forms shall be used for the receipt and acceptance of monies by a department/agency/district. They are not to be used for any other purpose.

2.5 Issuance and Preparation of Cash Receipt Forms

2.5.1 Issuance

Issue individual receipts sequentially.

2.5.2 Preparation

Complete the cash receipt form with the information indicated (see Exhibit I).

Transaction number, for internal purposes, e.g., Permit Number, License Number, or Case Number.

Dollar amount of the transaction.

Name of payor.

Date of transaction.

Address, if pertinent.

Brief description of transaction, e.g., payment for license or permit, fine, bail, deposit, etc.

Amount of cash received and/or check number.

Complete County Account Coding.

Name of department, agency, or district, if applicable.

Signature of person receiving payment and preparing the receipt.

2.5.3 Distribution

Distribute copies of the receipt as follows:

Uniform Cash Receipt Form (booklet type)
Original - To person making payment.
1st Copy - Retain attached in book.
2nd Copy - Accompanies prepared deposit order. (See CAP #C.4..)

Special Cash Receipts Forms
Procedures for distribution shall be developed by the Auditor-Controller for use by the department/agency/district based upon the requirements of the department/agency/district.

2.6 Voiding

Cash receipt forms voided due to errors or for any other reason shall be marked "VOID". All copies of the voided forms shall be retained, attached to the cash receipt form booklet.

2.7 Retention

Used cash receipt forms or sets of special receipt forms and inventory records may be destroyed five years after the date of the last receipt.

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Overage Fund

SUBJECT:

OVERAGE FUND
NUMBER:

C.6.

DEPARTMENTS & DISTRICTS AFFECTED:

All Agencies, Departments, and Districts Governed by the Board of Supervisors

EFFECTIVE: 10/20/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Frequently, cash receipts for County departments and agencies exceed revenues for which they are collected. These overages are placed in the County Overage Fund. The fund is used to accumulate overages over the period of one fiscal year. At the end of each fiscal year, balances are transferred out of the Overage Fund to the County General Fund as revenue.

The Overage Fund is established in conjunction with cash difference funds.
(See County Accounting Procedure No. C.2., Cash Difference Fund.)

1.1 Purpose

The purpose of this procedure is to establish accounting guidelines for the recording of overages and their distribution.

1.2 Authority

Authority

Subject

Government Code Sections 29370-29390.1 Establishment of overage and cash difference funds

Board of Supervisors Resolution 83-354 dated March 8, 1983 Authorization for Auditor-Controller to transfer money from the Overage Fund to the County General Fund

1.3 Definitions

1.3.1 Overage

Excess cash receipts occurring from employee processing of cash receipts. These overages occur during daily operations such as accepting money and making change in over-the-counter transactions. Typically, overages are the result of inadvertent failure to return adequate change to persons making payments to the County. For purposes of this procedure, and as defined in Government Code section 29375.1, an overage occurs when the amount paid to the County does not exceed the amount due to the County, for any individual receipt, by more than $10.

1.3.2 Overage Fund

A fund established to accumulate overages over the period of a fiscal year. At the end of each fiscal year, balances are transferred out of the Overage Fund to the County General Fund as revenue.

1.3.3 Officer

"Officer of the County" includes any elective or appointive officer of the County, and any person in charge of any office, department, service, or institution of the County, or a division or branch thereof, and as enumerated in Section 24000 of the Government Code.

2. PROCEDURE

2.1 Recording Overages

2.1.1 Cash Receipt Forms

When a department or agency determines that cash receipts exceed fees, fines, etc. for which they are collected, and the payor of the overage cannot be identified, the department or agency records the excess amount in Fund 101, the Overage Fund. Per Government Code section 29375.1, the overage may only be transferred to the County Overage Fund when the amount paid to the County does not exceed the amount due to the County for any individual receipt, by more than $10. When the deposit order is prepared to record collections for a location, the amount of the Overage is recorded as follows:

Fund: 101

Agency: Agency used for recording the revenue or other receipt for which the overpayment was made. For example, an overpayment of revenue recorded in Fund 100, Agency 003, Revenue Source Code 7590, Other Charges for Services should be recorded in Fund 101, Agency 003, Balance Sheet Account 9990, Fund Balance - Unreserved - Undesignated - Inferred.

Balance Sheet Account - 9990

See Exhibit I.

2.2 Report to Officer

In a department or agency with a cash difference fund, the director or department head shall be provided with a written report setting forth the exact sum of any cash deficit or overage by the close of each business day. The report shall be prepared by the person who receives and disburses money placed in his or her custody as directed by law or by official authority.

2.3 Balances in the Overage Fund

As overages are recorded during each fiscal year, the balances are accumulated in separate accounts for each department or agency. For example, the balance in Fund 100, Agency 003, Balance Sheet Account 9990 represents overages transferred by the Auditor-Controller.

2.4 Transferring Overage Fund Balances

After the final deposit orders are recorded for a fiscal year, the Auditor-Controller transfers overage balances to the County General Fund as revenue.

2.5 Annual Report to the Board of Supervisors

At the end of each fiscal year, the Auditor-Controller shall render a written report and give an account of the Overage Fund.

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Revolving Cash Fund

SUBJECT:

REVOLVING CASH FUND
NUMBER:

C.7.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 12/92
REVISED: 11/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions
1.4 Unauthorized Uses

2. PROCEDURES

2.1 Establishing or Increasing the Fund
2.2 Making Disbursements from the Fund
2.3 Reimbursing the Fund
2.4 Safeguarding the Fund
2.5 Cash Shortages and Overages
2.6 Decreasing the Fund
2.7 Transferring the Fund
2.8 Discontinuing the Fund
2.9 Internal Audit Department/CEO Purchasing: Independent Reviews

EXHIBITS

Exhibit I - Revolving Cash Fund Voucher

Exhibit II - Revolving Cash Fund/Cash Advance Reimbursement Form

SUBJECT:

REVOLVING CASH FUND
NUMBER:

C.7.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 12/92
REVISED: 11/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Certain Officers of the County may use a revolving cash fund in accordance with guidelines established by the Auditor-Controller, County Purchasing Agent, Board of Supervisors, and State of California.

1.1 Purpose

The purpose of this procedure is to define the authorized uses of a revolving cash fund and to advise County Officers how to properly establish, increase, spend, replenish, safeguard, reduce, transfer, and discontinue a revolving cash fund in accordance with Board of Supervisors, Auditor-Controller, and State of California policies.

1.2 Authority

1.2.1 State of California Government Code Sections 29320 through 29334

Authorizes the Board to delegate authority to the Auditor-Controller to establish revolving funds for offices, departments/agencies, and institutions.

1.2.2 Board of Supervisors' Resolution No. 85-1684 dated November 26, 1985

Establishes revolving funds, provides for expenditure limitations, and authorizes the functions of the Auditor-Controller and the Purchasing Agent to be performed.

1.2.3 Board of Supervisors' Resolution No. 92-1008 dated September 15, 1992

Amends Resolution No. 85-1684 to set the limit for individual expenditures at $1,000.

1.3 Definitions

1.3.1 Officer

"Officer of the County" includes any elective or appointive officer of the County and any person in charge of any office, department, service, or institution of the County, or a division or branch thereof and as enumerated in Section 24000 of the Government Code.

1.3.2 Revolving Cash Fund

A fund in which a fixed amount of money is set aside for:

making change, or

handling disbursements that do not exceed $1,000 for individual purchases, including sales tax and any delivery costs, or

making cash advances for traveling or other expenses related to such travel that do not exceed $1,000 for each cash advance, or

making cash advances for traveling or other expenses related to such travel over $1,000 that are approved by the department head.

1.3.3 Individual Purchase

An "individual purchase" is the total of all receipts from a vendor on a specific day. Transactions from a particular vendor cannot exceed $1,000 per day including tax and shipping.

1.3.4 Cash Advance

A payment of cash to County employees to provide for traveling or other expenses related to such travel. Cash advances for travel are discussed in more detail in County Accounting Procedure (CAP) No. C.1., Cash Advances - Revolving Funds.

1.3.5 Fixed Asset Component

A "fixed asset component" is an integral part or piece of the fixed asset.

1.4 Unauthorized Uses

1.4.1 Circumvention of County Bidding Process

The revolving fund may not be used to circumvent the bidding process as established in the County Of Orange Contract Policy Manual. Examples include:

Splitting large purchases of goods and/or services into smaller components in order to avoid exceeding the bid requirements or Board approval limits set in the Contract Policy Manual.

Procuring supplies and/or services that are available through existing countywide or departmental contracts.

Purchasing additional supplies and/or services from a contract vendor in lieu of using a change order or contract modification.

Purchasing publishing services that are available through PFRD Publishing Services.

Purchasing components of fixed asset items to avoid normal budgetary and approval requirements for fixed assets.

Purchasing items without required special approvals (such as alterations to County-owned buildings) or items that have Contract Policy limitations (see the Contract Policy Manual for details).

1.4.2 Payment for Services

The revolving cash fund cannot be used to pay for services, (e.g., repairs, spraying for insects), if the service provider is not on the CEO Purchasing Insurance Master Control Listing. Service providers on the listing have provided CEO Purchasing with a Certificate of Insurance naming the County as an additional insured. The user must certify on the invoice "Insurance Verified." Reimbursement will not be made if the invoice is not certified.

1.4.3 Delivery Charges

Delivery charges are not to be paid from the revolving cash fund when the Purchasing Agent or Deputy Purchasing Agent has not authorized the delivery charges on a purchase order or by separate memo.

1.4.4 Employee Check Cashing/Loans

The fund must not be used to cash checks or loan money to employees (except advances for properly pre-authorized revolving cash purchases and travel advances).

1.4.5 1099 Requirements

Revolving funds should not be used to purchase services from sole proprietorships or partnerships due to the 1099 tax form reporting requirements.

1.4.6 Deposits/Advances

"Good Faith" deposits or advances that can be refunded before an event (e.g., conference or seminar) occurs will not be reimbursed to the revolving cash fund until the event has occurred.

1.4.7 Unethical Practices/Conflicts of Interest

This fund may not be used for unethical purposes. Unethical purposes include the purchasing of items from sources who represent a conflict of interest, (e.g., employee relatives), have been barred from doing business with the County, are unlicensed contractors, exchange gratuities for business considerations, or other practices which violate fair and ethical business standards. An Officer for whom the fund is established will have an obligation to monitor the fund's use to ensure that unethical practices are not occurring.

1.4.8 Extraordinary Circumstances

If an Officer, for whom the revolving fund is established, authorized an individual purchase exceeding $1,000, or a purchase for an unauthorized use defined above, the Purchasing Agent may approve such purchases provided that the Officer submits written justification explaining the extraordinary circumstances which led to the transaction. The Purchasing Agent will review the explanation and make a determination regarding its validity. If the Purchasing Agent determines that it is valid and that the purchase was reasonable and generally met competitive procurement standards, the Purchasing Agent shall transmit the approval to the Auditor-Controller by memorandum. The Officer will be advised by the Purchasing Agent of each such approval. Any purchases not approved by the Purchasing Agent in this manner may be referred by the department head to the Board of Supervisors for approval.

2. PROCEDURES

2.1 Establishing or Increasing the Fund

2.1.1 Written Request to CEO

Any Officer wishing to establish or increase a revolving cash fund must forward a written request to the Purchasing Agent, stating the need for the fund or the reason for the increase, and the amount requested. The Purchasing Agent will review the request and forward it to the Auditor-Controller General Ledger Unit with a recommendation.

2.1.2 Auditor-Controller Review

The Auditor-Controller reviews the request and the Purchasing Agent's recommendations for compliance with statutory provisions and County procedures and operating rules, and authorizes the issuance of a check establishing or increasing the fund. The Auditor-Controller will assess the size of the fund needed based on revolving cash, Purchasing Card usage, and cash advance activity.

2.1.3 Material Control Weaknesses

The Auditor-Controller may elect not to increase the fund of a department/agency with significant revolving cash fund internal control weaknesses until such weaknesses are corrected.

2.1.4 Treasurer-Tax Collector Assistance

Upon notification from the Auditor-Controller General Ledger Unit, the County Treasurer-Tax Collector will assist a department/agency in establishing a checking account without bank service charges.

2.2 Making Disbursements from the Fund

2.2.1 Approval by Authorized Individual

Purchases or cash advances from the revolving cash fund must be approved by an authorized person who does not also have revolving fund custodian, check signer, or reconciliation duties.

2.2.2 Revolving Cash Voucher/Supporting Documentation

Before disbursing currency or issuing a revolving cash fund check to reimburse an employee for a purchase, the fund custodian is to record the final purchase amount and expenditure coding on a Revolving Cash Fund Voucher (Exhibit I). The custodian is to examine all supporting documents (e.g., handwritten or cash register receipts) for appropriateness, and obtain signatures from the persons approving the purchase and receiving the reimbursement. When monies are disbursed from the fund, all supporting documents should be immediately canceled by the custodian (e.g., by marking "Paid by check no. 18762" thereon).

2.2.3 Advanced Amounts

Before advancing revolving fund cash for purchases, the fund custodian must record the advance on a Revolving Cash Fund Voucher (Exhibit I) and obtain proper signatures. The employee receiving the advance must later return the original receipts and/or money totaling the advanced amount to the custodian, who should then examine the voucher and all supporting documents for appropriateness and immediately cancel all supporting documents.

2.2.4 Travel Cash Advances

Disbursements for cash advances for travel should be issued in accordance with CAP No. C.1., Cash Advances - Revolving Funds.

2.2.5 Checks to "Cash"/ Blank Checks

Drawing checks to "cash" or signing blank checks is prohibited. Checks should be made out to the vendor or to the employee, whichever is appropriate.

2.3 Reimbursing the Fund

2.3.1 Revolving Cash Reimbursements

When a department/agency wishes to have its fund reimbursed for expenses other than cash advance travel expenditures, a Revolving Cash Fund/Cash Advance Reimbursement claim (Exhibit II) envelope is completed, and Revolving Cash Fund Vouchers (Exhibit I), with all supporting documents attached, are enclosed. An authorized signer reviews the envelope's contents for propriety, signs and seals the envelope, and submits to the Auditor-Controller Claims and Disbursing Section. All reimbursements will be provided by means of electronic funds transfer, unless otherwise specified with the Treasurer-Tax Collector's Cash Management Officer.

2.3.2 Travel Cash Advance Reimbursements

When a department/agency wishes to have its fund reimbursed for cash advance travel expenses, the custodian shall complete a Revolving Cash Fund/Cash Advance Reimbursement claim envelope and enclose all Mileage and Other Expenses Claim forms and supporting documents attached. An authorized signer reviews the envelope's contents for propriety, signs and seals the envelope, and submits to the Auditor-Controller Claims and Disbursing Section.

Claims for reimbursement for cash advance travel expenditures shall be submitted separately from other reimbursement claims.

Refer to CAP No. C.1., Cash Advances - Revolving Funds, for detailed procedures regarding cash advances.

2.3.3 Certification of Invoice Copies/Faxes

Original invoices or receipts must accompany all vouchers included in revolving fund reimbursement requests. Departments may submit a copy or fax of an original invoice or receipt only if it includes a certification that the original has been lost or destroyed and the item has not previously been reimbursed. The certification must be signed by someone within the department/agency who is authorized to approve purchases and is not the revolving cash custodian.

2.3.4 Canceled Checks

Canceled checks (if received from the bank) should be retained by the department/agency for five years, and should not be placed in Revolving Cash Fund/Cash Advance Reimbursement envelopes.

2.3.5 Auditor-Controller Review

The Auditor-Controller will review the claim, deduct amounts for any item(s) not authorized pursuant to this procedure, and issue payment to the Officer for the approved amount.

2.3.6 Unauthorized Purchases

Purchases of a type not authorized by the Auditor-Controller or the Purchasing Agent represent a personal liability of the Officer.

2.3.7 Department/Agency Certification

Signing and submitting the Revolving Cash Fund/Cash Advance Reimbursement claim envelope for reimbursement of the revolving fund shall represent department/agency certification that all expenditures/cash advances were made in accordance with policies and procedures established for revolving cash funds and cash advances for travel purposes.

Signature and submittal is also a representation that any cash advances outstanding more than 60 days after completion of the travel event have been brought to the attention of the department head and are being actively pursued for collection at the earliest possible time.

2.4 Safeguarding the Fund

2.4.1 Fund Custodian

Custodianship for each revolving fund must be vested in only one person. Another person, however, should have controlled access to the fund in case of absence or emergency. There should be a separate custodian for each fund (i.e., change fund assignment or revolving cash fund assignment at each departmental location with an assigned fund). The custodian of the fund must not have any other cash handling responsibilities, including the ability to sign checks or authorize revolving fund disbursements.

2.4.2 Currency/Checking

Monies in the revolving cash fund may be in the form of currency, or in a bank checking account, or a combination of both. The amount of currency should be held to a minimum to safeguard against theft or misplacement of funds.

2.4.3 Unused Checks/Voided Checks

All unused checks should be adequately safeguarded and periodically inventoried. Voided checks should be retained for five years.

2.4.4 Checking Account Reconciliations

Bank checking accounts should be reconciled monthly by an independent person with no revolving fund duties. Reconciliations should also include an inspection of canceled checks for signatures and proper endorsement, and a comparison of checks to check register for number, payee, date and amount. Unusual reconciling items should be brought to the attention of management. The reconciliations should be initialed and dated by the preparer to document timeliness and responsibility. Also, the reconciliations should be reviewed, initialed, and dated by a supervisor.

2.4.5 Fund Reconciliations

A reconciliation of the revolving fund shall be performed once per month by a person with no other revolving fund duties. The revolving fund should reconcile to the checking account balance, the revolving fund cash balance, and the unreplenished balance as recorded on Revolving Cash Fund Vouchers (Exhibit I) and Revolving Cash Fund/Cash Advance Reimbursements requests (Exhibit II). The same individual can perform the fund reconciliation, and the checking account reconciliation, described in section 2.4.4.

2.4.6 Travel Cash Advances

Cash advances for travel should be monitored separately from other revolving fund activities, but a specified amount attributable to cash advances does not need to be separately established. For example, a revolving fund of $10,000 may have at various times $2,000, $4,000, or $3,000 of outstanding cash advances, for which a separate accounting should be maintained. (See CAP C.1., Cash Advances - Revolving Funds.)

2.4.7 Surprise Cash Counts

Surprise cash counts of revolving fund monies should be conducted at frequent intervals and be conducted by someone other than the fund custodian. The department should maintain a record of the date and the amount counted and resolve any issues identified.

2.5 Cash Shortages and Overages

2.5.1 Cash Shortages

Cash shortages in a revolving cash fund should be replenished in accordance with CAP No. C.2., Cash Difference Fund. Departments without a Cash Difference Fund must follow CAP No. C.3., Cash Losses.

2.5.2 Cash Overages

Cash overages should be resolved based upon how they originated. If they resulted from a canceled payment for which a revolving cash fund reimbursement has already been received, they should be listed as a credit against other expenditures on the next reimbursement request. If they resulted from normal cash handling procedures, they must be deposited into the County's Overage Fund. Refer to CAP No. C.6., Overage Fund, for more detailed procedures.

2.6 Decreasing the Fund

An Officer wishing to decrease the amount of an established revolving cash fund may do so by notifying the Purchasing Agent in writing, and depositing the amount of the reduction into the County Treasury. The Purchasing Agent will forward the notification to the Auditor-Controller.

2.7 Transferring the Fund

The procedure for transferring a revolving cash fund will be followed whenever an outgoing Officer's duties or responsibilities change and he/she is no longer responsible for the revolving cash fund, and the outgoing and incoming Officers are both available and willing to sign the transfer request. This procedure is explained in CAP No. M.4., Requirements of Elected or Appointed Officials Assuming or Leaving Office.

2.8 Discontinuing the Fund

2.8.1 County Accounting Procedure No. M.4.

A revolving cash fund may be discontinued in accordance with procedures explained in CAP No. M.4., Requirements of Elected or Appointed Officials Assuming or Leaving Office.

2.8.2 Material Control Weaknesses

Either the Auditor-Controller or the Purchasing Agent can recommend discontinuance of the fund of a department/agency with material revolving cash fund internal control weaknesses.

2.9 Internal Audit Department/CEO Purchasing; Independent Reviews

The Internal Audit Department and CEO Purchasing will periodically review department/agency revolving cash fund functions for cost effectiveness, internal controls, and overall appropriateness.

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Compensation of County Boards, Commissions and Committees

SUBJECT:

COMPENSATION OF COUNTY BOARDS, COMMISSIONS AND COMMITTEES

NUMBER:

D.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 03/02/80
REVISED: 06/2001

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Orange County board, commission and committee members will be reimbursed in accordance with the legal authority establishing payment.

1.1 Purpose

To provide compensation for services and reimbursement for expenses rendered by members of County boards, commissions, and committees.

1.2 Authority

1.2.1 Board of Supervisors' Resolution No. 65-696, dated May 25, 1965

Requires that all claims against the County be presented to the County of Orange not later than one year after the accrual of the cause of action, pursuant to Government Code Section 935.

1.2.2 Board of Supervisors' Resolution No. 75-710, dated May 20, 1975

Established procedures for reimbursement of expenses incurred by County board, committee and commission members.

1.2.3 Board of Supervisors' Resolution No. 77-1889, dated December 6, 1977

Authorizes mileage reimbursement to County employees serving on boards, committees, and commissions.

1.2.4 Board of Supervisors' Resolution No. 84-327, dated March 6,1984

Authorizes the Auditor-Controller to reimburse County board and commission members for expenses from attendance at local training sessions and seminars after approval has been obtained by the County Executive Office.

1.2.5 Board of Supervisors' Minute Order Item No. 33, dated November 25, 1997

Amends Board of Supervisors' Resolution No. 75-710, which established procedures for reimbursement of expenses incurred by County board, committee and commission members.

1.2.6 Board of Supervisors' Minute Order Item No. 21, dated March 16, 1999

Established the County of Orange Administrative Procedure No. 017-02, County Business Travel and Reimbursement of Related Expenses.

1.2.7 State of California Government Code Sections 31000.1 to 31000.2

Authorizes the payment of reasonable and necessary expenses and of special allowances, such as per meeting stipends, to members of County boards, commissions or committees.

1.2.8 Board of Supervisors' Resolution No. 82-162, dated February 2, 1982

Authorizes the Auditor-Controller to prescribe the accounting policies and forms for departments, agencies, and districts under the control of the Board of Supervisors.

2. PROCEDURE

General provisions for providing reimbursement for services rendered by members of County boards, commissions, and committees are listed in the County of Orange Administrative Procedure No. 017-13, Operation of County Boards, Committees, and Commissions. The section relevant to this County Accounting Procedure is attached; refer to Exhibit I of this procedure for guidelines.

Current boards, commissions and committees that are eligible for reimbursement and/or compensation can be found on the County Intranet site at http://ocintranet.ocgov.com/ from the drop-down menu. From the drop-down menu, select "Boards, Commissions and Committees." Select the "Open" area from the home page, and then select "Reports" from the top of the Open Area page. On the Report Selection page, highlight Board Appointments, select the board, commission or committee from the drop down menu, and then select "Run Report." This report includes a listing of the current members of each County board, commission or committee, the expenses eligible for reimbursement, the amount of compensation authorized, and the legal authority authorizing payment. If you have any questions regarding this information on the Intranet, or if you cannot access the Intranet, please contact the Clerk of the Board.

Either a Request for Check(s)/Attendance Sheet form (Exhibit II) or a Commissions, Committees, Volunteers and Advisory Boards Mileage, Stipends and Other Expenses Claim Form (Exhibit III) must be completed and delivered to the Auditor-Controller Department for payment processing. Below is an explanation of the uses and requirements of each form.

2.1 Request for Check(s)/Attendance Sheet (Exhibit II)

This form should be used when members of the board, commission or committee are eligible for receiving only a flat fee for their related services (e.g., $50 per meeting). One claim should be submitted for the entire board, commission or committee. This eliminates the need for individual member claim requests.

The board, commission or committee must submit the completed claim to the department, agency or district authorized to approve the claim. Once approved, the department, agency or district forwards the original claim to the Auditor-Controller for payment. To expedite payment, the claim should be filed with the Auditor-Controller on a calendar month basis on or before the tenth day of the succeeding month. A claim must be filed within a year from the date the expense was incurred.

The following items must be included on the form:

Name of the board, commission or committee filing the claim

Applicable account coding for the board, commission or committee

Name, address and social security number of each member requesting payment

Date(s) and meeting(s) attended for each member requesting payment

Dollar amount payable to each member requesting payment

Signature of each member

Total dollar amount of the expenditure for the claim

2.2 Mileage, Stipends and Other Expenses Claim Form (Exhibit III)

Each member of the board, commission or committee that is eligible for related mileage and/or other expenses should use this form. Before filing this claim form, please read carefully the attached "Filing and Preparation Instructions," including the related rules and regulations. While these rules and regulations apply to most County boards, commissions and committees, members should also make themselves aware of any variances by also reading the State statutes and the Board of Supervisors' ordinance, resolution or minute order establishing reimbursement.

The County Executive Office must approve all requests for reimbursement of expenses for attendance at local training sessions and seminars before reimbursement is requested from the Auditor-Controller.

In completing this form, some of the more important points to remember are:

Each board, commission or committee member must submit the completed claim to the department, agency or district authorized to approve the claim.

The claim should be filed on a calendar month basis and within one year from the date the expense was incurred.

The name of the board, commission or committee should be shown in the box designated "Commission/Committee/Advisory Board/ or Department/Agency Name." The department, agency or district responsible for approving the claim should also be given here.

The address of the assigned meeting place should be given in the box designated "Address of Assigned Office." The street address and city must be given.

The legal authorization for the claim should be shown on the first line of the body of the form. The specific minute order, resolution number, ordinance number or State statute must be shown on the claim.

The claim must include the claimant's name and the address to which payment is to be mailed.

List each meeting separately by recording the date, street address, city, number of allowable miles traveled and other allowable related expenses in the columns designated. If more than one page is needed to complete the claim, be sure to reenter, on all pages, name, name of board, commission or committee, and the authorizing department, agency or district.

Supporting documentation must be attached and all receipts should show proof of payment.

Total all of the columns and compute the allowable mileage; be sure to enter the amount allowed per mile. Summarize the claim by account code and post in the box provided.

The "Minimum Mileage Reimbursement" does not apply to board, commission and committee members.

Sign and date the claim.

Once approved, the department, agency or district forwards the original copy to the Auditor-Controller for payment.

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Educational Revenue Augmentation Fund Contributions 1997 - 1998

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 1997 - 1998

DIST	DESCRIPTION	TRA COUNT	AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND		164,444,480.63
002A	ORANGE COUNTY PUBLIC LIBRARY		18,211,312.23
051A	ANAHEIM CITY		3,686,470.25
052B	BREA CITY		951,949.58
053B	FULLERTON CITY		2,362,040.41
054A	HUNTINGTON BEACH CITY		5,496,782.44
055B	LAGUNA BEACH CITY		1,362,676.53
056A	LA HABRA CITY		793,801.42
057A	NEWPORT BEACH CITY		3,588,075.93
058A	NEWPORT BEACH CITY		-
058B	ORANGE CITY		2,525,164.07
059A	PLACENTIA CITY		892,828.90
060B	SAN CLEMENTE CITY		1,257,623.88
061B	SANTA ANA CITY		4,644,355.13
062B	SEAL BEACH CITY		645,981.81
063B	TUSTIN CITY		977,461.23
064A	BUENA PARK CITY		1,085,775.91
065B	COSTA MESA CITY		2,481,155.44
066A	LA PALMA CITY		371,181.54
067A	STANTON CITY		335,073.29
068A	GARDEN GROVE CITY		1,756,456.37
069A	CYPRESS CITY		761,354.61
070A	WESTMINSTER CITY		586,738.96
071A	FOUNTAIN VALLEY CITY		1,060,540.80
072A	LOS ALAMITOS CITY		259,525.56
073A	SAN JUAN CAPISTRANO CITY		652,078.12
074A	VILLA PARK CITY		171,722.92
075A	YORBA LINDA CITY		578,782.30
076A	IRVINE CITY		1,196,204.48
077A	MISSION VIEJO CITY		966,443.06
078A	DANA POINT CITY		1,620,825.38
079A	LAGUNA-NIGUEL CITY		208,748.71
080A	LAKE FOREST CITY		79,067.38
081A	LAGUNA HILLS CITY		16,216.85
703A	ORANGE COUNTY CEMETERY DISTRICT		889,014.68
706A	ORANGE COUNTY FIRE AUTHORITY		(3,994,563.33)
708A	ORANGE COUNTY TRANSPORTATION AUTHORITY		3,098,525.69
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT		13,452,303.34
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26		4,842,744.91
716A	BUENA PARK LIBRARY DISTRICT		545,600.79
717A	PLACENTIA LIBRARY DISTRICT		823,577.93
721B	CYPRESS CITY MUNI LIGHTING DIST #2		22,032.33
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT		1,513,767.99
748B	CYPRESS RECREATION & PARK DIST.		491,035.83
750A	SILVERADO-MODJESKA RECREATION & PARK DIS		27,276.54
757B	COSTA MESA SANITARY DIST-BASIC		64,823.76
758A	SOUTH COAST WATER-DANA POINT SANI ZN 3		431,110.78
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST		650,257.90
760A	MIDWAY CITY SANITARY DIST		1,270,537.32
766A	SOUTH COAST WATER DIST-SEWER ZN 2		380,973.25
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST		132,001.48
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT		441,131.47
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST		6,456.85
777A	THREE ARCH BAY COMMUNITY SERVICES DIST		171,505.66
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.		1,087,504.05
781B	COUNTY SERVICE AREA # 4-LEISURE WORLD		284,344.83
781C	COUNTY SERVICE AREA # 4-ZONE A		44,149.12
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST		43,790.11
790A	COUNTY SERVICE AREA # 13-LA MIRADA		299.58
797A	COUNTY SERVICE AREA # 20-LA HABRA		3,403.81
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT		368,422.50
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA		2,795.75
800B	SOUTH COAST WATER-CAP BCH WATER-ZN 6		115,943.99
803A	EAST ORANGE COUNTY WATER DISTRICT		242,161.58
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST		560,862.01
805C	LAGUNA BEACH SUB CO WATER-LAG CANYON ANX		3,119.41
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST		22,335.85
808B	TRABUCO CANYON WATER DIST		535,169.13
809A	SANTIAGO COUNTY WATER DISTRICT		193,301.40
810A	SOUTH COAST WATER DIST-ZONE 1 WATER		274,355.78
812A	YORBA LINDA CO WATER DIST		471,596.54
853A	TRI-CITIES MUNICIPAL WATER DIST		-
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4		38,669.98
914A	YORBA LINDA GREENBELT MAINT. DIST #1		1,569.73
915A	ORANGE CO SANITATION DIST #1		-
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)		78,646.10
918A	ORANGE CO SANITATION DIST (OLD OCSD#3)		1,506,801.90
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)		520,753.97
921A	ORANGE CO SANITATION DIST (OLD OCSD#6)		320,579.25
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)		966,952.91
926A	ORANGE CO SANITATION DIST (OLD OCSD#11)		694,391.78
932A	SURFSIDE COLONY STORM WATER PROTECTION D		17,621.59
941A	IRVINE CITY-OCSLM DISTRICT #10		220,226.32
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1		28,609.36
957A	LA PALMA MUNI LIGHTING DIST NO. 1		-
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1		24,873.75
960A	ORANGE CO WATER DISTRICT		-
961A	ORANGE CO WATER DISTRICT WATER RESERVE		-
965A	COSTA MESA-VEHICLE PARKING DIST #1		27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2		21.29
967A	GARDEN GROVE-VEHICLE PARKING DIST #2		91.88
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI		1,774.93
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1		32,205.34
971A	WESTMINSTER MUNI HWY LIGHTING DIST.		69,565.63
980A	STANTON MUNI HWY LIGHTING DISTRICT		24,479.37
981A	EL TORO WATER DISTRICT		239,155.51
982B	IRVINE RANCH WATER DIST		60,637.69
982C	IRVINE RANCH WATER DIST IMP DIST #1		31,790.53
982E	IRVINE RANCH WATER DIST IMP DIST #2		37,060.85
982F	IRVINE RANCH WATER DIST IMP DIST #3		30,384.28
982G	IRVINE RANCH WATER DIST IMP DIST #104		23,599.29
982H	IRVINE RANCH WATER DIST IMP DIST #204		54,624.95
982K	IRVINE RANCH WATER DIST IMP DIST 105		45.87
982L	IRVINE RANCH WATER DIST IMP DIST 206		3,636.76
982W	IRVINE RANCH WATER DIST IMP DIST 250		45.85
983A	LOS ALISOS WATER DISTRICT		437,715.00
984B	MOULTON-NIGUEL WATER DIST		1,788,084.08
984C	MOULTON-NIGUEL WATER DIST-I D # 1		794,020.55
984D	MOULTON-NIGUEL WATER DIST-I D # 2		15,276.26
984E	MOULTON-NIGUEL WATER DIST-I D # 2A		169,361.44
984G	MOULTON-NIGUEL WATER DIST-I D # 3A		423,208.44
984H	MOULTON-NIGUEL WATER DIST-I D # 1A		887,350.64
984K	MOULTON-NIGUEL WATER DIST-I D # 4A		586,008.28
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1		187,746.13
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2		171,604.78
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3		183,172.45
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3		68,326.21
984R	MOULTON-NIGUEL WATER DIST-I D # 5A		752,971.60
984U	MOULTON-NIGUEL WATER DIST-I D # 8		26,518.04
986B	SANTA MARGARITA WATER DISTRICT		96,487.46
986C	SANTA MARGARITA WATER IMP DIST #1		520.38
986D	SANTA MARGARITA WATER IMP DIST #2		7,939.60
987F	YORBA LINDA LANDSCAPE MAINT DIST #7		1,970.46
987G	YORBA LINDA LANDSCAPE MAINT DIST #8		328.99
987H	YORBA LINDA LANDSCAPE MAINT DIST #9		545.09
995B	SUNSET BEACH SANITARY DISTRICT		29,390.44

	TOTAL		267,131,957.59

Educational Revenue Augmentation Fund Contributions 1998 - 1999

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 1998 - 1999

DIST	DESCRIPTION	TRA COUNT	AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND		174,106,931.50
002A	ORANGE COUNTY PUBLIC LIBRARY		19,484,304.77
051A	ANAHEIM CITY		3,842,305.09
052B	BREA CITY		978,650.20
053B	FULLERTON CITY		2,407,535.61
054A	HUNTINGTON BEACH CITY		5,738,848.21
055B	LAGUNA BEACH CITY		1,463,216.81
056A	LA HABRA CITY		855,693.71
057A	NEWPORT BEACH CITY		3,894,808.80
058A	ORANGE CITY		297.37
058B	ORANGE CITY		2,641,942.90
059A	PLACENTIA CITY		892,038.06
060B	SAN CLEMENTE CITY		1,325,708.58
061B	SANTA ANA CITY		4,807,182.78
062B	SEAL BEACH CITY		670,018.49
063B	TUSTIN CITY		1,072,565.90
064A	BUENA PARK CITY		1,101,204.53
065B	COSTA MESA CITY		2,545,215.67
066A	LA PALMA CITY		380,319.42
067A	STANTON CITY		348,376.78
068A	GARDEN GROVE CITY		1,813,666.41
069A	CYPRESS CITY		797,583.17
070A	WESTMINSTER CITY		601,658.56
071A	FOUNTAIN VALLEY CITY		1,100,727.12
072A	LOS ALAMITOS CITY		267,916.16
073A	SAN JUAN CAPISTRANO CITY		711,771.36
074A	VILLA PARK CITY		179,684.04
075A	YORBA LINDA CITY		612,269.84
076A	IRVINE CITY		1,258,626.87
077A	MISSION VIEJO CITY		1,031,065.47
078A	DANA POINT CITY		1,783,392.70
079A	LAGUNA-NIGUEL CITY		221,811.98
080A	LAKE FOREST CITY		84,804.58
081A	LAGUNA HILLS CITY		33,457.87
703A	ORANGE COUNTY CEMETERY DISTRICT		949,696.34
706A	ORANGE COUNTY FIRE AUTHORITY		(4,321,307.31)
708A	ORANGE COUNTY TRANSPORTATION AUTHORITY		3,287,130.09
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT		14,271,119.06
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26		5,137,492.12
716A	BUENA PARK LIBRARY DISTRICT		553,427.23
717A	PLACENTIA LIBRARY DISTRICT		886,570.48
721B	CYPRESS CITY MUNI LIGHTING DIST #2		23,056.36
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT		1,605,781.91
748B	CYPRESS RECREATION & PARK DIST.		513,998.10
750A	SILVERADO-MODJESKA RECREATION & PARK DIS		27,364.06
757B	COSTA MESA SANITARY DIST-BASIC		66,796.29
758A	SOUTH COAST WATER-DANA POINT SANI ZN 3		447,073.34
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST		668,125.12
760A	MIDWAY CITY SANITARY DIST		1,304,125.34
766A	SOUTH COAST WATER DIST-SEWER ZN 2		422,893.43
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST		142,667.83
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT		512,420.55
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST		6,456.85
777A	THREE ARCH BAY COMMUNITY SERVICES DIST		182,212.79
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.		1,152,204.10
781B	COUNTY SERVICE AREA # 4-LEISURE WORLD		297,931.94
781C	COUNTY SERVICE AREA # 4-ZONE A		45,743.37
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST		45,730.70
790A	COUNTY SERVICE AREA # 13-LA MIRADA		313.68
797A	COUNTY SERVICE AREA # 20-LA HABRA		3,403.26
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT		390,345.82
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA		2,893.46
800B	SOUTH COAST WATER-CAP BCH WATER-ZN 6		122,844.38
803A	EAST ORANGE COUNTY WATER DISTRICT		253,556.60
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST		606,368.99
805C	LAGUNA BEACH SUB CO WATER-LAG CANYON ANX		2,447.25
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST		23,325.82
808B	TRABUCO CANYON WATER DIST		571,944.53
809A	SANTIAGO COUNTY WATER DISTRICT		193,264.64
810A	SOUTH COAST WATER DIST-ZONE 1 WATER		302,070.01
812A	YORBA LINDA CO WATER DIST		493,078.61
853A	TRI-CITIES MUNICIPAL WATER DIST		-
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4		41,948.01
914A	YORBA LINDA GREENBELT MAINT. DIST #1		1,638.70
915A	ORANGE CO SANITATION DIST #1		-
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)		82,122.56
918A	ORANGE CO SANITATION DIST (OLD OCSD#3)		1,557,599.78
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)		566,915.93
921A	ORANGE CO SANITATION DIST (OLD OCSD#6)		358,670.14
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)		1,009,217.43
926A	ORANGE CO SANITATION DIST (OLD OCSD#11)		723,801.23
932A	SURFSIDE COLONY STORM WATER PROTECTION D		17,621.59
941A	IRVINE CITY-OCSLM DISTRICT #10		229,419.48
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1		30,345.70
957A	LA PALMA MUNI LIGHTING DIST NO. 1		-
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1		25,805.74
960A	ORANGE CO WATER DISTRICT		-
961A	ORANGE CO WATER DISTRICT WATER RESERVE		-
965A	COSTA MESA-VEHICLE PARKING DIST #1		27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2		21.37
967A	GARDEN GROVE-VEHICLE PARKING DIST #2		92.18
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI		1,903.78
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1		33,742.31
971A	WESTMINSTER MUNI HWY LIGHTING DIST.		71,256.02
980A	STANTON MUNI HWY LIGHTING DISTRICT		25,443.21
981A	EL TORO WATER DISTRICT		252,133.58
982B	IRVINE RANCH WATER DIST		65,654.70
982C	IRVINE RANCH WATER DIST IMP DIST #1		33,501.27
982E	IRVINE RANCH WATER DIST IMP DIST #2		40,624.92
982F	IRVINE RANCH WATER DIST IMP DIST #3		30,883.78
982G	IRVINE RANCH WATER DIST IMP DIST #104		28,524.03
982H	IRVINE RANCH WATER DIST IMP DIST #204		67,213.36
982K	IRVINE RANCH WATER DIST IMP DIST 105		45.60
982L	IRVINE RANCH WATER DIST IMP DIST 206		3,975.81
982W	IRVINE RANCH WATER DIST IMP DIST 250		45.58
983A	LOS ALISOS WATER DISTRICT		484,680.27
984B	MOULTON-NIGUEL WATER DIST		1,927,233.39
984C	MOULTON-NIGUEL WATER DIST-I D # 1		838,557.74
984D	MOULTON-NIGUEL WATER DIST-I D # 2		15,778.12
984E	MOULTON-NIGUEL WATER DIST-I D # 2A		174,925.55
984G	MOULTON-NIGUEL WATER DIST-I D # 3A		441,054.90
984H	MOULTON-NIGUEL WATER DIST-I D # 1A		937,084.86
984K	MOULTON-NIGUEL WATER DIST-I D # 4A		652,504.60
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1		218,596.84
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2		179,686.72
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3		191,382.88
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3		71,388.71
984R	MOULTON-NIGUEL WATER DIST-I D # 5A		804,577.28
984U	MOULTON-NIGUEL WATER DIST-I D # 8		27,380.16
986B	SANTA MARGARITA WATER DISTRICT		109,561.95
986C	SANTA MARGARITA WATER IMP DIST #1		562.36
986D	SANTA MARGARITA WATER IMP DIST #2		10,041.18
987F	YORBA LINDA LANDSCAPE MAINT DIST #7		2,036.41
987G	YORBA LINDA LANDSCAPE MAINT DIST #8		341.46
987H	YORBA LINDA LANDSCAPE MAINT DIST #9		614.86
995B	SUNSET BEACH SANITARY DISTRICT		30,261.91

	TOTAL		282,668,616.27

Educational Revenue Augmentation Fund Contributions 1999 - 2000

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 1999 - 2000

DIST	DESCRIPTION	TRA COUNT	AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND	4232	188,481,617.37
002A	ORANGE COUNTY PUBLIC LIBRARY	3225	21,402,237.00
051A	ANAHEIM CITY	246	4,030,890.49
052B	BREA CITY	47	1,027,134.45
053B	FULLERTON CITY	67	2,540,015.76
054A	HUNTINGTON BEACH CITY	38	6,225,025.94
055B	LAGUNA BEACH CITY	48	1,619,941.93
056A	LA HABRA CITY	84	906,368.08
057A	NEWPORT BEACH CITY	112	4,171,644.65
058A	NEWPORT BEACH CITY	1	297.90
058B	ORANGE CITY	249	2,794,027.41
059A	PLACENTIA CITY	44	967,373.97
060B	SAN CLEMENTE CITY	28	1,469,648.35
061B	SANTA ANA CITY	117	5,004,546.61
062B	SEAL BEACH CITY	23	705,612.81
063B	TUSTIN CITY	157	1,177,599.31
064A	BUENA PARK CITY	44	1,156,797.84
065B	COSTA MESA CITY	219	2,716,735.08
066A	LA PALMA CITY	39	393,638.85
067A	STANTON CITY	122	363,176.20
068A	GARDEN GROVE CITY	404	1,916,484.71
069A	CYPRESS CITY	46	819,591.81
070A	WESTMINSTER CITY	136	631,018.71
071A	FOUNTAIN VALLEY CITY	26	1,165,183.02
072A	LOS ALAMITOS CITY	20	279,540.81
073A	SAN JUAN CAPISTRANO CITY	66	786,885.59
074A	VILLA PARK CITY	12	191,210.46
075A	YORBA LINDA CITY	143	657,723.29
076A	IRVINE CITY	218	1,360,979.09
077A	MISSION VIEJO CITY	122	1,109,413.94
078A	DANA POINT CITY	155	2,024,209.48
079A	LAGUNA-NIGUEL CITY	97	248,335.67
080A	LAKE FOREST CITY	130	93,234.50
081A	LAGUNA HILLS CITY	77	36,063.32
703A	ORANGE COUNTY CEMETERY DISTRICT	3088	1,035,914.06
706A	ORANGE COUNTY FIRE AUTHORITY	2036	(4,798,339.96)
708A	ORANGE COUNTY TRANSPORTATION AUTHORITY	4221	3,560,021.99
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	4228	15,455,960.12
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	4228	5,564,012.30
716A	BUENA PARK LIBRARY DISTRICT	46	582,110.79
717A	PLACENTIA LIBRARY DISTRICT	43	962,261.18
721B	CYPRESS CITY MUNI LIGHTING DIST #2	34	23,714.82
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	4208	1,739,297.92
748B	CYPRESS RECREATION & PARK DIST.	45	528,559.56
750A	SILVERADO-MODJESKA RECREATION & PARK DIS	37	28,307.47
757B	COSTA MESA SANITARY DIST-BASIC	145	71,877.27
758A	SOUTH COAST WATER-DANA POINT SANI ZN 3	41	487,660.37
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	207	702,253.38
760A	MIDWAY CITY SANITARY DIST	85	1,370,741.79
766A	SOUTH COAST WATER DIST-SEWER ZN 2	49	478,277.00
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	2	167,758.99
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	2	590,601.40
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	1	6,456.85
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	2	209,390.71
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	92	1,281,276.13
781B	COUNTY SERVICE AREA # 4-LEISURE WORLD	54	320,946.16
781C	COUNTY SERVICE AREA # 4-ZONE A	2	48,604.83
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	162	48,448.57
790A	COUNTY SERVICE AREA # 13-LA MIRADA	1	326.59
797A	COUNTY SERVICE AREA # 20-LA HABRA	4	3,491.43
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	3	419,934.54
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	3	3,143.86
800B	SOUTH COAST WATER-CAP BCH WATER-ZN 6	71	132,456.61
803A	EAST ORANGE COUNTY WATER DISTRICT	352	266,449.71
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	29	677,218.23
805C	LAGUNA BEACH SUB CO WATER-LAG CANYON ANX	2	2,835.00
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	21	24,664.43
808B	TRABUCO CANYON WATER DIST	31	634,403.89
809A	SANTIAGO COUNTY WATER DISTRICT	45	192,211.43
810A	SOUTH COAST WATER DIST-ZONE 1 WATER	82	342,973.39
812A	YORBA LINDA CO WATER DIST	104	529,403.42
853A	TRI-CITIES MUNICIPAL WATER DIST	83	-
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4	90	46,421.07
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2	1,773.39
915A	ORANGE CO SANITATION DIST #1	47	-
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	750	85,989.13
918A	ORANGE CO SANITATION DIST (OLD OCSD#3)	913	1,643,709.08
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	68	633,038.06
921A	ORANGE CO SANITATION DIST (OLD OCSD#6)	186	362,195.60
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	721	1,054,996.05
926A	ORANGE CO SANITATION DIST (OLD OCSD#11)	20	785,359.05
932A	SURFSIDE COLONY STORM WATER PROTECTION D	1	17,621.59
941A	IRVINE CITY-OCSLM DISTRICT #10	48	248,372.24
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	11	33,782.21
957A	LA PALMA MUNI LIGHTING DIST NO. 1	28	-
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	31	27,404.40
960A	ORANGE CO WATER DISTRICT	2603	-
961A	ORANGE CO WATER DISTRICT WATER RESERVE	2496	-
965A	COSTA MESA-VEHICLE PARKING DIST #1	2	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	2	21.30
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	2	92.18
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI	1	2,086.82
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	13	36,905.59
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	124	74,784.79
980A	STANTON MUNI HWY LIGHTING DISTRICT	87	26,617.16
981A	EL TORO WATER DISTRICT	110	270,730.56
982B	IRVINE RANCH WATER DIST	12	71,443.81
982C	IRVINE RANCH WATER DIST IMP DIST #1	61	35,759.24
982E	IRVINE RANCH WATER DIST IMP DIST #2	25	43,903.46
982F	IRVINE RANCH WATER DIST IMP DIST #3	23	34,035.88
982G	IRVINE RANCH WATER DIST IMP DIST #3	37	36,126.53
982H	IRVINE RANCH WATER DIST IMP DIST #3	28	88,013.93
982K	IRVINE RANCH WATER DIST IMP DIST 105	2	60.48
982L	IRVINE RANCH WATER DIST IMP DIST 206	53	4,568.11
982W	IRVINE RANCH WATER DIST IMP DIST 250	2	60.47
983A	LOS ALISOS WATER DISTRICT	79	549,545.91
984B	MOULTON-NIGUEL WATER DIST	260	2,238,641.06
984C	MOULTON-NIGUEL WATER DIST-I D # 1	75	932,675.69
984D	MOULTON-NIGUEL WATER DIST-I D # 2	29	17,089.94
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	29	189,469.45
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	46	458,338.35
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	80	1,042,016.30
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	51	811,856.54
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	19	283,286.78
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	12	226,881.84
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	20	207,880.12
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	20	77,542.56
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	17	912,691.22
984U	MOULTON-NIGUEL WATER DIST-I D # 8	7	29,887.56
986B	SANTA MARGARITA WATER DISTRICT	146	128,395.37
986C	SANTA MARGARITA WATER IMP DIST #1	35	614.87
986D	SANTA MARGARITA WATER IMP DIST #2	26	12,623.79
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	2	2,164.71
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	2	344.38
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	1	665.65
995B	SUNSET BEACH SANITARY DISTRICT	6	31,632.65

	TOTAL		305,989,975.43

Educational Revenue Augmentation Fund Contributions 2000 - 2001

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2000 - 2001

DIST	DESCRIPTION	TRA COUNT	AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND	4351	206,551,202.68
002A	ORANGE COUNTY PUBLIC LIBRARY	3344	23,617,475.34
051A	ANAHEIM CITY	246	4,420,442.40
052B	BREA CITY	47	1,086,113.71
053B	FULLERTON CITY	67	2,751,841.58
054A	HUNTINGTON BEACH CITY	38	6,746,437.86
055B	LAGUNA BEACH CITY	48	1,774,423.10
056A	LA HABRA CITY	84	980,943.30
057A	NEWPORT BEACH CITY	113	4,610,295.42
058B	ORANGE CITY	249	2,955,169.66
059A	PLACENTIA CITY	44	1,045,851.82
060B	SAN CLEMENTE CITY	28	1,639,523.24
061B	SANTA ANA CITY	117	5,329,863.07
062B	SEAL BEACH CITY	22	749,845.97
063B	TUSTIN CITY	157	1,304,170.90
064A	BUENA PARK CITY	44	1,227,699.02
065B	COSTA MESA CITY	220	2,985,457.80
066A	LA PALMA CITY	39	413,737.32
067A	STANTON CITY	122	386,065.72
068A	GARDEN GROVE CITY	407	2,070,095.01
069A	CYPRESS CITY	46	879,892.70
070A	WESTMINSTER CITY	138	667,252.23
071A	FOUNTAIN VALLEY CITY	26	1,232,134.62
072A	LOS ALAMITOS CITY	20	301,265.40
073A	SAN JUAN CAPISTRANO CITY	71	851,947.46
074A	VILLA PARK CITY	12	208,577.29
075A	YORBA LINDA CITY	143	703,357.05
076A	IRVINE CITY	210	1,500,110.37
077A	MISSION VIEJO CITY	125	1,195,536.01
078A	DANA POINT CITY	155	2,155,669.34
079A	LAGUNA-NIGUEL CITY	97	267,116.47
080A	LAKE FOREST CITY	130	102,334.76
081A	LAGUNA HILLS CITY	79	38,496.19
703A	ORANGE COUNTY CEMETERY DISTRICT	3206	1,143,295.75
706A	ORANGE COUNTY FIRE AUTHORITY	2149	(5,323,958.00)
708A	ORANGE COUNTY TRANSPORTATION AUTHORITY	4340	3,900,255.90
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	4347	16,933,216.62
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	4347	6,095,791.20
716A	BUENA PARK LIBRARY DISTRICT	46	619,610.24
717A	PLACENTIA LIBRARY DISTRICT	43	1,040,847.67
721B	CYPRESS CITY MUNI LIGHTING DIST #2	34	25,442.45
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	4327	1,905,570.24
748B	CYPRESS RECREATION & PARK DIST.	45	566,421.36
750A	SILVERADO-MODJESKA RECREATION & PARK DIST	37	29,317.16
757B	COSTA MESA SANITARY DIST-BASIC AREA	150	78,874.70
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	41	520,486.40
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	208	745,483.04
760A	MIDWAY CITY SANITARY DIST	85	1,474,252.97
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	49	520,491.38
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	2	190,670.57
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	2	651,188.11
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	1	6,456.85
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	2	227,864.41
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	92	1,373,153.99
781B	COUNTY SERVICE AREA # 4-LEISURE WORLD	65	360,034.30
781C	COUNTY SERVICE AREA # 4-ZONE A	3	52,118.04
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	163	52,055.36
790A	COUNTY SERVICE AREA # 13-LA MIRADA	1	353.32
797A	COUNTY SERVICE AREA # 20-LA HABRA	4	3,572.83
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	3	453,003.34
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	3	3,290.47
800B	SOUTH COAST WATER-CAP BCH WATER-ZN 6	71	142,044.04
803A	EAST ORANGE COUNTY WATER DISTRICT	353	283,805.99
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	29	739,916.08
805C	LAGUNA BEACH SUB CO WATER-LAG CANYON ANX	2	3,047.02
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	21	26,573.18
808B	TRABUCO CANYON WATER DIST	38	703,610.56
809A	SANTIAGO COUNTY WATER DISTRICT	45	199,859.18
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	82	370,139.19
812A	YORBA LINDA CO WATER DIST	103	567,709.05
853A	TRI-CITIES MUNICIPAL WATER DIST	83	-
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4	96	49,869.97
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2	1,853.22
915A	ORANGE CO SANITATION DIST #1	47	-
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	751	92,957.97
918A	ORANGE CO SANITATION DIST (OLD OCSD#3)	916	1,758,917.86
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	68	706,570.36
921A	ORANGE CO SANITATION DIST (OLD OCSD#6)	187	400,249.96
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	736	1,137,931.31
926A	ORANGE CO SANITATION DIST (OLD OCSD#11)	20	852,470.78
932A	SURFSIDE COLONY STORM WATER PROTECTION D	1	17,621.59
941A	IRVINE CITY-OCSLM DISTRICT #10	48	264,385.77
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	11	38,833.72
957A	LA PALMA MUNI LIGHTING DIST NO. 1	28	-
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	31	28,942.53
960A	ORANGE CO WATER DISTRICT	2623	-
961A	ORANGE CO WATER DISTRICT WATER RESERVE	2514	-
965A	COSTA MESA-VEHICLE PARKING DIST #1	2	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	2	21.33
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI	1	2,280.79
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	13	39,961.82
980A	STANTON MUNI HWY LIGHTING DISTRICT	87	28,248.87
981A	EL TORO WATER DISTRICT	121	296,064.38
982B	IRVINE RANCH WATER DIST	12	76,625.15
982C	IRVINE RANCH WATER DIST IMP DIST #1	61	37,666.85
982E	IRVINE RANCH WATER DIST IMP DIST #2	25	50,552.04
982F	IRVINE RANCH WATER DIST IMP DIST #3	23	36,787.07
982G	IRVINE RANCH WATER DIST IMP DIST #3	37	45,711.81
982H	IRVINE RANCH WATER DIST IMP DIST #3	28	114,627.89
982K	IRVINE RANCH WATER DIST IMP DIST 105	2	61.22
982L	IRVINE RANCH WATER DIST IMP DIST 206	53	5,122.12
982W	IRVINE RANCH WATER DIST IMP DIST 250	2	61.19
983A	LOS ALISOS WATER DISTRICT	80	623,868.38
984B	MOULTON-NIGUEL WATER DIST	270	2,500,075.16
984C	MOULTON-NIGUEL WATER DIST-I D # 1	75	995,514.63
984D	MOULTON-NIGUEL WATER DIST-I D # 2	30	18,282.56
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	30	202,691.66
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	47	487,946.32
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	80	1,112,090.81
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	56	956,689.53
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	24	352,561.06
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	12	243,671.88
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	20	221,499.64
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	20	82,622.83
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	17	976,309.24
984U	MOULTON-NIGUEL WATER DIST-I D # 8	7	32,085.12
986B	SANTA MARGARITA WATER DISTRICT	212	148,951.21
986C	SANTA MARGARITA WATER IMP DIST #1	34	667.39
986D	SANTA MARGARITA WATER IMP DIST #2	31	15,006.01
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	2	2,253.08
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	2	381.79
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	1	658.52
995B	SUNSET BEACH SANITARY DISTRICT	6	32,955.49

	TOTAL		334,606,645.39

Educational Revenue Augmentation Fund Contributions 2001 - 2002

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2001 - 2002

DIST	DESCRIPTION	TRA COUNT	AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND	4333	225,274,561.02
002A	ORANGE COUNTY PUBLIC LIBRARY	3320	25,853,617.64
051A	ANAHEIM CITY	246	4,932,600.59
052B	BREA CITY	49	1,130,748.30
053B	FULLERTON CITY	67	2,944,208.30
054A	HUNTINGTON BEACH CITY	38	7,299,007.43
055B	LAGUNA BEACH CITY	48	1,971,026.39
056A	LA HABRA CITY	84	1,051,442.12
057A	NEWPORT BEACH CITY	113	5,014,754.38
058B	ORANGE CITY	249	3,137,374.71
059A	PLACENTIA CITY	44	1,128,150.54
060B	SAN CLEMENTE CITY	28	1,849,609.13
061B	SANTA ANA CITY	117	5,693,903.39
062B	SEAL BEACH CITY	23	820,603.66
063B	TUSTIN CITY	157	1,376,233.42
064A	BUENA PARK CITY	44	1,301,619.47
065B	COSTA MESA CITY	222	3,199,122.89
066A	LA PALMA CITY	39	444,157.85
067A	STANTON CITY	125	365,415.43
068A	GARDEN GROVE CITY	407	2,219,403.69
069A	CYPRESS CITY	46	922,077.78
070A	WESTMINSTER CITY	138	630,929.98
071A	FOUNTAIN VALLEY CITY	26	1,304,069.37
072A	LOS ALAMITOS CITY	20	316,941.06
073A	SAN JUAN CAPISTRANO CITY	71	914,868.05
074A	VILLA PARK CITY	12	224,974.35
075A	YORBA LINDA CITY	143	757,710.60
076A	IRVINE CITY	209	1,636,113.25
077A	MISSION VIEJO CITY	125	1,276,361.67
078A	DANA POINT CITY	148	2,445,270.99
079A	LAGUNA-NIGUEL CITY	98	290,055.34
080A	LAKE FOREST CITY	129	111,147.33
081A	LAGUNA HILLS CITY	74	40,564.88
703A	ORANGE COUNTY CEMETERY DISTRICT	3152	1,254,982.84
706A	ORANGE COUNTY FIRE AUTHORITY	2116	(5,893,465.82)
708A	ORANGE COUNTY TRANSPORTATION AUTHORITY	4307	4,254,022.03
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	4330	18,469,225.48
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	4327	6,648,700.41
716A	BUENA PARK LIBRARY DISTRICT	46	656,978.74
717A	PLACENTIA LIBRARY DISTRICT	43	1,123,267.49
721B	CYPRESS MUNI LIGHTING DIST #2	33	26,662.33
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	4281	2,078,457.75
748B	CYPRESS RECREATION & PARK DIST.	45	593,894.78
750A	SILVERADO-MODJESKA RECREATION & PARK DIST	37	30,791.67
757B	COSTA MESA SANITARY DIST-BASIC AREA	149	85,096.34
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	41	561,744.43
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	209	790,049.71
760A	MIDWAY CITY SANITARY DIST	85	1,436,713.38
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	50	599,318.98
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	2	218,216.72
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	2	749,345.69
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	1	6,456.85
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	2	265,577.03
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	88	1,481,439.15
781B	COUNTY SERVICE AREA # 4-LEISURE WORLD	23	386,525.55
781C	COUNTY SERVICE AREA # 4-ZONE A	2	55,260.98
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	159	55,558.28
790A	COUNTY SERVICE AREA # 13-LA MIRADA	1	389.98
797A	COUNTY SERVICE AREA # 20-LA HABRA	4	3,789.56
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	3	488,557.17
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	3	3,480.45
800B	SOUTH COAST WATER-CAP BCH WATER-ZN 6	71	155,021.95
803A	EAST ORANGE COUNTY WATER DISTRICT	351	303,633.37
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	29	821,726.82
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	2	3,386.01
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	21	28,698.71
808B	TRABUCO CANYON WATER DIST	45	737,271.83
809A	SANTIAGO COUNTY WATER DISTRICT	45	204,110.62
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	81	421,896.42
812A	YORBA LINDA CO WATER DIST	102	614,006.06
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4	95	54,345.68
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2	1,943.73
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	752	102,050.80
918A	ORANGE CO SANITATION DIST (OLD OCSD#3)	923	1,848,762.03
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	67	788,182.86
921A	ORANGE CO SANITATION DIST (OLD OCSD#6)	190	427,765.64
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	724	1,218,195.05
926A	ORANGE CO SANITATION DIST (OLD OCSD#11)	20	925,958.41
932A	SURFSIDE COLONY STORM WATER PROTECTION	1	17,621.59
941A	IRVINE CITY-OCSLM DISTRICT #10	48	283,654.83
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	11	42,916.06
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	31	30,728.80
965A	COSTA MESA-VEHICLE PARKING DIST #1	2	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	2	21.34
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DIST	1	2,479.43
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	13	43,756.47
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	126	74,808.74
980A	STANTON MUNI HWY LIGHTING DISTRICT	87	26,718.81
981A	EL TORO WATER DISTRICT	115	315,601.39
982B	IRVINE RANCH WATER DIST	20	80,579.14
982G	IRVINE RANCH WATER DIST IMP DIST #3	37	59,634.73
982H	IRVINE RANCH WATER DIST IMP DIST #3	28	151,412.71
982K	IRVINE RANCH WATER DIST IMP DIST 105	2	62.43
982L	IRVINE RANCH WATER DIST IMP DIST 206	53	5,758.42
982W	IRVINE RANCH WATER DIST IMP DIST 250	2	62.40
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	79	699,853.14
984B	MOULTON-NIGUEL WATER DIST	272	2,710,898.53
984C	MOULTON-NIGUEL WATER DIST-I D # 1	75	1,069,626.54
984D	MOULTON-NIGUEL WATER DIST-I D # 2	29	19,170.57
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	29	212,536.36
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	47	513,163.92
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	80	1,194,283.41
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	61	1,049,981.75
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	29	395,198.00
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	12	254,941.03
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	20	234,636.49
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	20	87,522.98
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	17	1,067,426.79
984U	MOULTON-NIGUEL WATER DIST-I D # 8	7	33,891.88
986B	SANTA MARGARITA WATER DISTRICT	182	171,171.76
986C	SANTA MARGARITA WATER IMP DIST #1	34	718.72
986D	SANTA MARGARITA WATER IMP DIST #2	31	17,455.97
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	2	2,383.77
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	2	377.59
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	1	727.89
995B	SUNSET BEACH SANITARY DISTRICT	6	35,246.14

	TOTAL		364,010,035.84

Educational Revenue Augmentation Fund Contributions 2002 - 2003

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2002 - 2003

DIST	DESCRIPTION	TRA COUNT	AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND	4443	244,917,635.25
002A	ORANGE COUNTY PUBLIC LIBRARY	3425	28,004,442.09
051A	ANAHEIM CITY	249	5,782,861.84
052B	BREA CITY	51	1,168,955.87
053B	FULLERTON CITY	67	3,194,835.92
054A	HUNTINGTON BEACH CITY	38	7,891,956.03
055B	LAGUNA BEACH CITY	48	2,143,108.40
056A	LA HABRA CITY	84	1,097,548.38
057A	NEWPORT BEACH CITY	113	5,348,503.12
058B	ORANGE CITY	250	3,306,406.69
059A	PLACENTIA CITY	44	1,218,999.22
060B	SAN CLEMENTE CITY	28	2,064,754.51
061B	SANTA ANA CITY	117	5,994,914.39
062B	SEAL BEACH CITY	23	917,043.83
063B	TUSTIN CITY	157	1,428,394.38
064A	BUENA PARK CITY	44	1,382,609.62
065B	COSTA MESA CITY	222	3,386,857.42
066A	LA PALMA CITY	39	457,104.48
067A	STANTON CITY	125	365,569.26
068A	GARDEN GROVE CITY	408	2,345,027.56
069A	CYPRESS CITY	46	978,499.64
070A	WESTMINSTER CITY	144	631,186.54
071A	FOUNTAIN VALLEY CITY	26	1,365,027.35
072A	LOS ALAMITOS CITY	20	331,112.50
073A	SAN JUAN CAPISTRANO CITY	71	971,486.88
074A	VILLA PARK CITY	12	239,786.93
075A	YORBA LINDA CITY	143	802,000.58
076A	IRVINE CITY	214	1,750,435.15
077A	MISSION VIEJO CITY	125	1,345,384.22
078A	DANA POINT CITY	148	2,680,941.80
079A	LAGUNA-NIGUEL CITY	98	308,991.18
080A	LAKE FOREST CITY	129	119,647.01
081A	LAGUNA HILLS CITY	74	42,686.51
703A	ORANGE COUNTY CEMETERY DISTRICT	3254	1,371,764.09
706A	ORANGE COUNTY FIRE AUTHORITY	2213	(6,434,104.91)
708A	ORANGE COUNTY TRANSPORTATION AUTHORITY	4417	4,623,218.36
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	4440	20,072,285.79
713A	ORG CO HARBORS, BEACHES & PARKS CSA 26	4437	7,225,746.85
716A	BUENA PARK LIBRARY DISTRICT	47	698,126.42
717A	PLACENTIA LIBRARY DISTRICT	43	1,214,323.04
721B	CYPRESS MUNI LIGHTING DIST #2	33	28,311.24
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	4388	2,258,882.05
748B	CYPRESS RECREATION & PARK DIST.	45	630,583.17
750A	SILVERADO-MODJESKA RECREATION & PARK DIST	37	32,936.69
757B	COSTA MESA SANITARY DIST-BASIC AREA	149	90,320.06
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	41	588,008.93
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	209	830,887.79
760A	MIDWAY CITY SANITARY DIST	85	1,459,934.47
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	50	666,412.66
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	2	233,921.43
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	2	810,347.68
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	1	6,456.85
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	2	292,100.59
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	88	1,578,056.21
781B	COUNTY SERVICE AREA # 4-LEISURE WORLD	25	409,430.91
781C	COUNTY SERVICE AREA # 4-ZONE A	2	58,829.40
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	169	58,833.07
790A	COUNTY SERVICE AREA # 13-LA MIRADA	1	415.65
797A	COUNTY SERVICE AREA # 20-LA HABRA	4	3,894.16
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	3	519,475.13
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	3	3,692.93
800B	SOUTH COAST WATER-CAP BCH WATER-ZN 6	71	162,093.28
803A	EAST ORANGE COUNTY WATER DISTRICT	361	322,160.50
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	29	888,584.90
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	2	3,756.40
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	21	30,649.67
808B	TRABUCO CANYON WATER DIST	40	777,947.32
809A	SANTIAGO COUNTY WATER DISTRICT	45	217,247.13
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	81	468,154.14
812A	YORBA LINDA CO WATER DIST	102	655,945.18
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4	95	57,509.37
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2	2,077.59
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	755	114,687.86
918A	ORANGE CO SANITATION DIST (OLD OCSD#3)	933	1,955,677.94
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	97	870,747.34
921A	ORANGE CO SANITATION DIST (OLD OCSD#6)	190	454,737.62
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	725	1,281,064.46
926A	ORANGE CO SANITATION DIST (OLD OCSD#11)	20	1,012,138.68
932A	SURFSIDE COLONY STORM WATER PROTECTION	1	17,621.59
941A	IRVINE CITY-OCSLM DISTRICT #10	48	298,728.02
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	11	46,029.82
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	31	32,454.29
965A	COSTA MESA-VEHICLE PARKING DIST #1	2	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	2	21.63
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DIST	1	2,682.56
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	13	46,905.21
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	132	74,846.28
980A	STANTON MUNI HWY LIGHTING DISTRICT	87	26,697.67
981A	EL TORO WATER DISTRICT	117	332,499.84
982B	IRVINE RANCH WATER DIST	12	84,773.75
982C	IRVINE RANCH WATER DIST IMP DIST #1	61	42,546.35
982E	IRVINE RANCH WATER DIST IMP DIST #2	25	61,649.91
982F	IRVINE RANCH WATER DIST IMP DIST #3	23	41,600.72
982F	IRVINE RANCH WATER DIST IMP DIST #3	61	72,680.13
982F	IRVINE RANCH WATER DIST IMP DIST #3	47	186,244.03
982K	IRVINE RANCH WATER DIST IMP DIST 105	2	63.60
982L	IRVINE RANCH WATER DIST IMP DIST 206	72	6,518.97
982W	IRVINE RANCH WATER DIST IMP DIST 250	2	63.56
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	79	771,339.53
984B	MOULTON-NIGUEL WATER DIST	304	2,911,992.97
984C	MOULTON-NIGUEL WATER DIST-I D # 1	75	1,134,206.34
984D	MOULTON-NIGUEL WATER DIST-I D # 2	29	20,203.86
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	29	223,992.03
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	47	538,217.06
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	80	1,266,167.76
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	87	1,149,309.16
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	43	440,465.69
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	23	269,232.50
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	21	246,834.52
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	21	92,072.95
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	17	1,125,273.37
984U	MOULTON-NIGUEL WATER DIST-I D # 8	7	35,341.94
986B	SANTA MARGARITA WATER DISTRICT	196	193,864.72
986C	SANTA MARGARITA WATER IMP DIST #1	34	759.52
986D	SANTA MARGARITA WATER IMP DIST #2	31	20,101.42
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	2	2,490.83
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	2	393.01
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	1	765.91
995B	SUNSET BEACH SANITARY DISTRICT	6	39,315.08

	TOTAL		394,450,073.39

Educational Revenue Augmentation Fund Contributions 2003 - 2004

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2003 - 2004

DIST	DESCRIPTION	TRA COUNT	AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND	4456	261,247,391.29
002A	ORANGE COUNTY PUBLIC LIBRARY	3425	30,341,736.16
051A	ANAHEIM CITY	252	5,608,008.46
052B	BREA CITY	51	1,237,627.06
053B	FULLERTON CITY	67	3,473,961.31
054A	HUNTINGTON BEACH CITY	39	8,386,394.56
055B	LAGUNA BEACH CITY	48	2,359,172.12
056A	LA HABRA CITY	84	1,178,479.86
057A	NEWPORT BEACH CITY	113	5,729,585.37
058B	ORANGE CITY	251	3,548,110.60
059A	PLACENTIA CITY	44	1,308,027.95
060B	SAN CLEMENTE CITY	29	2,289,941.98
061B	SANTA ANA CITY	117	6,322,228.92
062B	SEAL BEACH CITY	24	1,015,402.45
063B	TUSTIN CITY	160	1,525,579.63
064A	BUENA PARK CITY	54	1,411,056.95
065B	COSTA MESA CITY	224	3,574,396.90
066A	LA PALMA CITY	39	481,325.33
067A	STANTON CITY	125	366,491.50
068A	GARDEN GROVE CITY	420	2,496,020.46
069A	CYPRESS CITY	46	1,049,738.08
070A	WESTMINSTER CITY	144	631,097.27
071A	FOUNTAIN VALLEY CITY	26	1,467,245.27
072A	LOS ALAMITOS CITY	20	352,631.29
073A	SAN JUAN CAPISTRANO CITY	71	1,038,043.21
074A	VILLA PARK CITY	12	254,306.78
075A	YORBA LINDA CITY	144	865,438.01
076A	IRVINE CITY	210	1,862,327.98
077A	MISSION VIEJO CITY	123	1,423,397.62
078A	DANA POINT CITY	148	2,872,614.53
079A	LAGUNA-NIGUEL CITY	98	330,011.64
080A	LAKE FOREST CITY	129	129,050.65
081A	LAGUNA HILLS CITY	74	45,479.41
703A	ORANGE COUNTY CEMETERY DISTRICT	3254	1,460,602.69
706A	ORANGE COUNTY FIRE AUTHORITY	2192	(7,007,324.49)
708A	ORANGE COUNTY TRANSPORTATION AUTHORITY	4429	4,933,073.94
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	4453	21,417,579.87
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	4450	7,710,009.41
716A	BUENA PARK LIBRARY DISTRICT	54	723,134.89
717A	PLACENTIA LIBRARY DISTRICT	43	1,304,043.31
721B	CYPRESS MUNI LIGHTING DIST #2	33	30,331.43
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	4403	2,410,304.35
748B	CYPRESS RECREATION & PARK DIST.	45	675,977.99
750A	SILVERADO-MODJESKA RECREATION & PARK DIST	37	33,276.58
757B	COSTA MESA SANITARY DIST-BASIC AREA	179	94,677.53
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	41	644,551.89
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	216	884,656.68
760A	MIDWAY CITY SANITARY DIST	85	1,484,916.68
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	50	724,453.18
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	2	250,664.02
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	2	882,666.43
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	1	23,582.27
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	2	322,588.96
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	88	1,683,561.75
781B	COUNTY SERVICE AREA # 4-LEISURE WORLD	24	434,882.64
781C	COUNTY SERVICE AREA # 4-ZONE A	2	63,087.96
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	178	62,898.76
790A	COUNTY SERVICE AREA # 13-LA MIRADA	1	434.73
797A	COUNTY SERVICE AREA # 20-LA HABRA	4	4,034.67
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	3	558,845.06
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	3	3,959.35
800B	SOUTH COAST WATER-CAP BCH WATER-ZN 6	71	177,595.05
803A	EAST ORANGE COUNTY WATER DISTRICT	371	344,461.13
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	29	968,867.80
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	2	4,095.21
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	21	33,108.22
808B	TRABUCO CANYON WATER DIST	40	820,526.44
809A	SANTIAGO COUNTY WATER DISTRICT	45	223,086.77
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	81	507,982.07
812A	YORBA LINDA CO WATER DIST	102	710,504.98
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4	94	61,384.84
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2	2,194.42
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	730	116,808.69
916E	ORANGE CO SANITATION DIST (OLD OCSD#3)	950	2,075,170.42
916F	ORANGE CO SANITATION DIST (OLD OCSD#5)	66	962,564.57
916G	ORANGE CO SANITATION DIST (OLD OCSD#6)	217	487,311.69
916H	ORANGE CO SANITATION DIST (OLD OCSD#7)	741	1,308,275.48
916J	ORANGE CO SANITATION DIST (OLD OCSD#11)	21	1,073,379.83
932A	SURFSIDE COLONY STORM WATER PROTECTION	1	64,359.15
941A	IRVINE CITY-OCSLM DISTRICT #10	48	311,690.97
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	11	50,154.34
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	31	35,064.75
965A	COSTA MESA-VEHICLE PARKING DIST #1	2	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	2	21.70
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DIST	1	2,895.18
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	13	51,143.45
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	132	74,841.40
980A	STANTON MUNI HWY LIGHTING DISTRICT	87	26,686.25
981A	EL TORO WATER DISTRICT	116	350,741.54
982B	IRVINE RANCH WATER DIST	12	90,426.76
982C	IRVINE RANCH WATER DIST IMP DIST #1	61	45,936.12
982E	IRVINE RANCH WATER DIST IMP DIST #2	25	65,254.85
982F	IRVINE RANCH WATER DIST IMP DIST #3	23	43,205.97
982G	IRVINE RANCH WATER DIST IMP DIST #104	40	84,685.98
982H	IRVINE RANCH WATER DIST IMP DIST #204	31	216,633.68
982K	IRVINE RANCH WATER DIST IMP DIST 105	2	39.08
982L	IRVINE RANCH WATER DIST IMP DIST 206	53	7,942.97
982W	IRVINE RANCH WATER DIST IMP DIST 250	2	39.03
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	79	846,089.22
984B	MOULTON-NIGUEL WATER DIST	277	3,128,320.71
984C	MOULTON-NIGUEL WATER DIST-I D # 1	75	1,211,088.92
984D	MOULTON-NIGUEL WATER DIST-I D # 2	29	21,599.79
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	29	239,467.89
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	46	568,665.78
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	80	1,352,085.81
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	67	1,245,719.82
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	33	480,575.06
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	13	287,160.63
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	21	264,186.24
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	21	98,545.25
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	17	1,197,154.44
984U	MOULTON-NIGUEL WATER DIST-I D # 8	7	36,464.36
986B	SANTA MARGARITA WATER DISTRICT	203	219,017.68
986C	SANTA MARGARITA WATER IMP DIST #1	34	804.13
986D	SANTA MARGARITA WATER IMP DIST #2	31	22,247.51
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	2	2,698.04
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	2	479.17
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	1	787.94
995B	SUNSET BEACH SANITARY DISTRICT	7	54,706.46

	TOTAL		420,714,859.41

Educational Revenue Augmentation Fund Contributions 2004 - 2005

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2004 - 2005

DIST	DESCRIPTION	ERAF I & II AMOUNT	ERAF III AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND	283,310,942.84	27,730,861.00
001D	COUNTY OF ORANGE GENERAL FUND	-	0
001E	COUNTY OF ORANGE GENERAL FUND	(48.18)	0
002A	ORANGE COUNTY PUBLIC LIBRARY	33,110,472.96	0
051A	ANAHEIM CITY	5,970,902.53	3,749,671.40
051A	ALISO VIEJO CITY	-	293,538.02
052B	BREA CITY	1,341,244.22	655,261.02
053B	FULLERTON CITY	3,819,778.72	1,448,166.14
054A	HUNTINGTON BEACH CITY	9,040,865.27	2,498,725.02
055B	LAGUNA BEACH CITY	2,657,651.04	711,985.60
055B	LAGUNA BEACH CITY-1979 ANNEX	87.67	0
056A	LA HABRA CITY	1,258,751.99	655,838.38
057A	NEWPORT BEACH CITY	6,159,800.80	2,264,301.77
058B	ORANGE CITY	3,804,988.45	1,790,297.34
059A	PLACENTIA CITY	1,414,395.70	518,215.89
060B	SAN CLEMENTE CITY	2,586,310.13	759,858.87
061B	SANTA ANA CITY	6,832,583.84	3,238,530.14
062B	SEAL BEACH CITY	1,088,215.40	315,362.26
063B	TUSTIN CITY	1,615,595.94	1,012,334.48
064A	BUENA PARK CITY	1,444,471.14	903,811.37
065B	COSTA MESA CITY	3,787,239.98	1,964,365.55
066A	LA PALMA CITY	515,452.41	190,833.88
067A	STANTON CITY	367,309.94	298,229.31
068A	GARDEN GROVE CITY	2,687,758.19	1,469,260.10
068C	GARDEN GROVE CITY ANX W/O PARAMEDICS TAX	14,253.35	0
069A	CYPRESS CITY	1,110,079.24	583,833.65
070A	WESTMINSTER CITY	631,260.00	898,281.46
071A	FOUNTAIN VALLEY CITY	1,589,066.26	672,390.35
072A	LOS ALAMITOS CITY	381,269.53	166,257.90
073A	SAN JUAN CAPISTRANO CITY	1,125,237.14	476,922.17
074A	VILLA PARK CITY	274,751.20	66,542.04
075A	YORBA LINDA CITY	937,513.54	718,964.49
076A	IRVINE CITY	2,051,568.77	2,408,972.26
077A	MISSION VIEJO CITY	1,516,434.69	1,305,798.00
078A	DANA POINT CITY	2,967,511.82	405,259.32
079A	LAGUNA-NIGUEL CITY	357,525.31	589,170.54
080A	LAKE FOREST CITY	136,470.30	795,462.60
081A	LAGUNA HILLS CITY	49,243.61	481,891.11
082A	LAGUNA WOODS CITY	-	171,700.64
083A	RANCHO SANTA MARGARITA CITY	-	437,533.00
703A	ORANGE COUNTY CEMETERY DISTRICT	1,586,307.99	84,511.20
706A	ORANGE COUNTY FIRE AUTHORITY	(7,678,249.52)	0
708A	ORANGE COUNTY TRANSIT AUTHORITY	5,349,991.92	0
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	23,227,730.40	4,061,277.30
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	8,361,609.16	3,022,633.40
716A	BUENA PARK LIBRARY DISTRICT	749,525.77	0
717A	PLACENTIA LIBRARY DISTRICT	1,410,900.91	0
721B	CYPRESS MUNI LIGHTING DIST #2	32,109.02	0
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	2,614,043.72	0
748B	CYPRESS RECREATION & PARK DIST.	714,026.90	246,936.30
750A	SILVERADO-MODJESKA RECREATION & PARK DIST	33,806.23	3,085.90
757B	COSTA MESA SANITARY DIST-	101,077.70	130,449.00
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	701,881.18	571,639.80
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	955,024.02	939,085.30
760A	MIDWAY CITY SANITARY DIST	1,515,365.22	429,125.20
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	802,224.84	0
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	276,788.39	55,878.90
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	972,597.84	80,687.80
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	25,843.08	5,700.30
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	363,002.07	47,588.00
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	1,829,512.33	236,760.12
781B	COUNTY SERVICE AREA # 4-NOW ALISO VIEJO CITY	457,737.44	0
781C	COUNTY SERVICE AREA # 4-ZNA ALISO VIEJO CITY	67,956.01	0
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	67,567.98	0
790A	COUNTY SERVICE AREA # 13-LA MIRADA	482.24	175.40
797A	COUNTY SERVICE AREA # 20-LA HABRA	4,250.20	882.90
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	608,159.39	35,495.20
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	4,333.86	1,280.60
800B	SOUTH COAST WATER-CAP BCH WATR ID#2-ZN 6	192,919.90	194,476.73
803A	EAST ORANGE COUNTY WATER DISTRICT	374,915.79	543,583.50
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	1,062,187.74	860,800.40
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	4,467.41	0
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	35,994.65	30,380.70
808B	TRABUCO CANYON WATER DIST	880,839.07	804,076.00
809A	SANTIAGO COUNTY WATER DISTRICT	214,559.23	59,204.00
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	560,125.31	1,228,885.76
812A	YORBA LINDA CO WATER DIST	763,999.93	793,014.00
848A	WESTERN MUNICIPAL WATER DISTRICT	-	0.95
849B	ELSINORE VALLEY MUNICIPAL WATER DISTRICT	-	7.85
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4	66,822.83	547,152.00
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2,364.10	0
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	125,441.84	16,198,043.90
916E	ORANGE CO SANITATION DIST (OLD OCSD#3)	2,225,442.31	0
916F	ORANGE CO SANITATION DIST (OLD OCSD#5)	1,038,102.03	0
916G	ORANGE CO SANITATION DIST (OLD OCSD#6)	528,274.03	0
916H	ORANGE CO SANITATION DIST (OLD OCSD#7)	177,257.70	0
916J	ORANGE CO SANITATION DIST (OLD OCSD#11)	1,152,860.02	0
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	-	0
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	1,211,602.30	0
932A	SURFSIDE COLONY STORM WATER PROTECTION D	70,529.22	2,209.10
941A	IRVINE CITY-OCSLM DISTRICT #10	329,860.14	0
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	54,520.53	0
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	37,354.67	0
960A	ORANGE COUNTY WATER DISTRICT	-	7,407,739.00
965A	COSTA MESA-VEHICLE PARKING DIST #1	27.88	0
966A	COSTA MESA-VEHICLE PARKING DIST #2	21.42	0
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	92.77	0
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DIST	3,122.20	0
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	55,730.39	0
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	74,860.72	0
980A	STANTON MUNI HWY LIGHTING DISTRICT	26,726.98	0
981A	EL TORO WATER DISTRICT	369,547.89	463,771.00
982B	IRVINE RANCH WATER DIST	97,501.45	9,711,800.00
982C	IRVINE RANCH WATER DIST IMP DIST #1	48,210.20	0
982E	IRVINE RANCH WATER DIST IMP DIST #2	70,281.25	0
982F	IRVINE RANCH WATER DIST IMP DIST #3	46,362.02	0
982G	IRVINE RANCH WATER DIST IMP DIST 104	97,937.31	0
982H	IRVINE RANCH WATER DIST IMP DIST 204	251,945.52	0
982K	IRVINE RANCH WATER DIST IMP DIST 105	39.73	0
982L	IRVINE RANCH WATER DIST IMP DIST 206	11,572.02	0
982W	IRVINE RANCH WATER DIST IMP DIST 250	39.68	0
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	895,866.02	0
984B	MOULTON-NIGUEL WATER DIST	3,374,074.61	5,856,706.80
984C	MOULTON-NIGUEL WATER DIST-I D # 1	1,311,357.16	0
984D	MOULTON-NIGUEL WATER DIST-I D # 2	23,738.19	0
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	263,175.49	0
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	601,378.70	0
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	1,463,551.22	0
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	1,345,720.85	0
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	519,507.98	0
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	309,017.41	0
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	285,633.83	0
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	106,545.35	0
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	1,278,211.20	0
984U	MOULTON-NIGUEL WATER DIST-I D # 8	39,032.27	0
986B	SANTA MARGARITA WATER DISTRICT	250,707.36	3,245,037.00
986C	SANTA MARGARITA WATER IMP DIST #1	859.13	0
986D	SANTA MARGARITA WATER IMP DIST #2	23,875.82	0
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	2,848.18	0
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	480.65	0
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	825.31	0
995B	SUNSET BEACH SANITARY DISTRICT	59,039.22	53,158.60

	TOTAL	455,532,468.16	120,601,666.99

Educational Revenue Augmentation Fund Contributions 2005 - 2006

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2005 - 2006

DIST	DESCRIPTION	ERAF I & II AMOUNT	ERAF III AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND	311,735,644.70	27,730,861.00
001D	COUNTY OF ORANGE GENERAL FUND	-	0
001E	COUNTY OF ORANGE GENERAL FUND	(48.18)	0
002A	ORANGE COUNTY PUBLIC LIBRARY	36,776,375.13	0
051A	ANAHEIM CITY	6,420,537.98	3,749,671.40
051A	ALISO VIEJO CITY	-	293,538.02
052B	BREA CITY	1,462,924.68	655,261.02
053B	FULLERTON CITY	4,132,953.35	1,448,166.14
054A	HUNTINGTON BEACH CITY	9,609,980.84	2,498,725.02
055B	LAGUNA BEACH CITY	2,951,488.89	711,985.60
055B	LAGUNA BEACH CITY-1979 ANNEX	82.38	0
056A	LA HABRA CITY	1,372,264.99	655,838.38
057A	NEWPORT BEACH CITY	6,850,479.91	2,264,301.77
058B	ORANGE CITY	4,100,911.70	1,790,297.34
059A	PLACENTIA CITY	1,566,747.59	518,215.89
060B	SAN CLEMENTE CITY	2,973,695.91	759,858.87
061B	SANTA ANA CITY	7,484,335.51	3,238,530.14
062B	SEAL BEACH CITY	1,174,001.98	315,362.26
063B	TUSTIN CITY	1,735,630.96	1,012,334.48
064A	BUENA PARK CITY	1,478,958.46	903,811.37
065B	COSTA MESA CITY	4,129,773.03	1,964,365.55
066A	LA PALMA CITY	548,518.83	190,833.88
067A	STANTON CITY	367,597.00	298,229.31
068A	GARDEN GROVE CITY	2,957,849.58	1,469,260.10
068C	GARDEN GROVE CITY ANX W/O PARAMEDICS TAX	15,791.04	0
069A	CYPRESS CITY	1,193,710.17	583,833.65
070A	WESTMINSTER CITY	631,252.99	898,281.46
071A	FOUNTAIN VALLEY CITY	1,745,156.44	672,390.35
072A	LOS ALAMITOS CITY	415,375.03	166,257.90
073A	SAN JUAN CAPISTRANO CITY	1,225,040.00	476,922.17
074A	VILLA PARK CITY	294,797.73	66,542.04
075A	YORBA LINDA CITY	1,043,644.18	718,964.49
076A	IRVINE CITY	2,324,102.19	2,408,972.26
077A	MISSION VIEJO CITY	1,656,001.46	1,305,798.00
078A	DANA POINT CITY	3,310,288.68	405,259.32
079A	LAGUNA-NIGUEL CITY	390,243.12	589,170.54
080A	LAKE FOREST CITY	146,731.63	795,462.60
081A	LAGUNA HILLS CITY	53,753.72	481,891.11
082A	LAGUNA WOODS CITY	-	171,700.64
083A	RANCHO SANTA MARGARITA CITY	-	437,533.00
703A	ORANGE COUNTY CEMETERY DISTRICT	1,753,983.82	84,511.20
706A	ORANGE COUNTY FIRE AUTHORITY	(8,588,420.60)	0
708A	ORANGE COUNTY TRANSIT AUTHORITY	5,886,849.71	0
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	25,558,654.67	4,061,277.30
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	9,200,658.81	3,022,633.40
716A	BUENA PARK LIBRARY DISTRICT	770,639.36	0
717A	PLACENTIA LIBRARY DISTRICT	1,564,909.26	0
721B	CYPRESS MUNI LIGHTING DIST #2	34,511.72	0
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	2,876,363.22	0
748B	CYPRESS RECREATION & PARK DIST.	767,837.43	246,936.30
750A	SILVERADO-MODJESKA RECREATION & PARK DIST	34,065.52	3,085.90
757B	COSTA MESA SANITARY DIST-	108,973.15	130,449.00
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	772,879.86	571,639.80
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	1,044,465.80	939,085.30
760A	MIDWAY CITY SANITARY DIST	1,559,426.52	429,125.20
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	879,927.89	0
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	316,225.09	55,878.90
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	1,066,155.70	80,687.80
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	27,869.85	5,700.30
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	400,754.64	47,588.00
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	1,994,770.22	236,760.12
781B	COUNTY SERVICE AREA # 4-NOW ALISO VIEJO CITY	497,584.70	0
781C	COUNTY SERVICE AREA # 4-ZNA ALISO VIEJO CITY	74,868.21	0
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	72,876.17	0
790A	COUNTY SERVICE AREA # 13-LA MIRADA	533.06	175.40
797A	COUNTY SERVICE AREA # 20-LA HABRA	4,483.84	882.90
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	665,344.73	35,495.20
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	4,886.27	1,280.60
800B	SOUTH COAST WATER-CAP BCH WATR ID#2-ZN 6	217,995.14	194,476.73
803A	EAST ORANGE COUNTY WATER DISTRICT	407,732.57	543,583.50
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	1,185,773.65	860,800.40
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	4,713.95	0
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	39,162.83	30,380.70
808B	TRABUCO CANYON WATER DIST	943,027.44	804,076.00
809A	SANTIAGO COUNTY WATER DISTRICT	216,519.62	59,204.00
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	614,320.65	1,228,885.76
812A	YORBA LINDA CO WATER DIST	834,087.93	793,014.00
848A	WESTERN MUNICIPAL WATER DISTRICT	-	0.95
849B	ELSINORE VALLEY MUNICIPAL WATER DISTRICT	-	7.85
865B	CAPISTRANO VALLEY WATER DIST-OCWD #4	72,846.85	547,152.00
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2,517.86	0
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	135,360.17	16,198,043.90
916E	ORANGE CO SANITATION DIST (OLD OCSD#3)	2,398,339.11	0
916F	ORANGE CO SANITATION DIST (OLD OCSD#5)	1,167,564.81	0
916G	ORANGE CO SANITATION DIST (OLD OCSD#6)	583,789.57	0
916H	ORANGE CO SANITATION DIST (OLD OCSD#7)	221,171.83	0
916J	ORANGE CO SANITATION DIST (OLD OCSD#11)	1,224,670.54	0
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	-	0
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	1,340,984.75	0
932A	SURFSIDE COLONY STORM WATER PROTECTION D	76,060.54	2,209.10
941A	IRVINE CITY-OCSLM DISTRICT #10	362,390.49	0
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	59,514.24	0
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	40,494.60	0
960A	ORANGE COUNTY WATER DISTRICT	-	7,407,739.00
965A	COSTA MESA-VEHICLE PARKING DIST #1	27.88	0
966A	COSTA MESA-VEHICLE PARKING DIST #2	22.81	0
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	92.77	0
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DIST	3,516.80	0
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	61,028.82	0
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	74,863.57	0
980A	STANTON MUNI HWY LIGHTING DISTRICT	26,700.14	0
981A	EL TORO WATER DISTRICT	400,859.77	463,771.00
982B	IRVINE RANCH WATER DIST	107,012.36	9,711,800.00
982C	IRVINE RANCH WATER DIST IMP DIST #1	51,483.40	0
982E	IRVINE RANCH WATER DIST IMP DIST #2	75,469.16	0
982F	IRVINE RANCH WATER DIST IMP DIST #3	49,535.34	0
982G	IRVINE RANCH WATER DIST IMP DIST 104	120,537.22	0
982H	IRVINE RANCH WATER DIST IMP DIST 204	312,854.79	0
982K	IRVINE RANCH WATER DIST IMP DIST 105	33.97	0
982L	IRVINE RANCH WATER DIST IMP DIST 206	16,271.13	0
982W	IRVINE RANCH WATER DIST IMP DIST 250	33.91	0
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	963,038.67	0
984B	MOULTON-NIGUEL WATER DIST	3,693,754.55	5,856,706.80
984C	MOULTON-NIGUEL WATER DIST-I D # 1	1,435,359.42	0
984D	MOULTON-NIGUEL WATER DIST-I D # 2	25,519.72	0
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	282,927.02	0
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	674,508.85	0
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	1,600,005.34	0
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	1,473,021.84	0
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	565,227.98	0
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	339,567.13	0
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	319,693.71	0
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	119,249.86	0
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	1,392,861.10	0
984U	MOULTON-NIGUEL WATER DIST-I D # 8	41,183.63	0
986B	SANTA MARGARITA WATER DISTRICT	288,717.61	3,245,037.00
986C	SANTA MARGARITA WATER IMP DIST #1	925.30	0
986D	SANTA MARGARITA WATER IMP DIST #2	26,058.85	0
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	3,071.01	0
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	540.15	0
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	848.53	0
995B	SUNSET BEACH SANITARY DISTRICT	65,880.08	53,158.60

	TOTAL	500,390,015.55	120,601,666.99

Educational Revenue Augmentation Fund Contributions 2006 - 2007

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2006 - 2007

DIST	DESCRIPTION	AMOUNT

001C	COUNTY OF ORANGE GENERAL FUND	345,305,224.87
982E	IRVINE RANCH WATER DIST IMP DIST #2	82,850.94
982F	IRVINE RANCH WATER DIST IMP DIST #3	55,362.72
982G	IRVINE RANCH WATER DIST IMP DIST 104	142,737.60
001D	COUNTY OF ORANGE GENERAL FUND	0.00
001E	COUNTY OF ORANGE GENERAL FUND	-48.18
002A	ORANGE COUNTY PUBLIC LIBRARY	40,810,619.42
051A	ANAHEIM CITY	7,373,465.88
052B	BREA CITY	1,580,862.09
053B	FULLERTON CITY	4,543,208.85
054A	HUNTINGTON BEACH CITY	10,508,475.54
055B	LAGUNA BEACH CITY	3,245,378.44
055F	LAGUNA BEACH CITY-1979 ANNEX	84.03
056A	LA HABRA CITY	1,524,106.96
057A	NEWPORT BEACH CITY	7,395,109.19
058B	ORANGE CITY	4,412,843.68
059A	PLACENTIA CITY	1,728,694.77
060B	SAN CLEMENTE CITY	3,393,060.35
061B	SANTA ANA CITY	8,380,134.93
062B	SEAL BEACH CITY	1,282,660.15
063B	TUSTIN CITY	1,914,980.22
064A	BUENA PARK CITY	1,562,069.17
065B	COSTA MESA CITY	4,532,397.58
066A	LA PALMA CITY	588,349.60
067A	STANTON CITY	368,426.03
068A	GARDEN GROVE CITY	3,265,185.98
068C	GARDEN GROVE CITY ANX W/O PARAMEDICS TAX	16,712.91
069A	CYPRESS CITY	1,278,434.74
070A	WESTMINSTER CITY	631,289.39
071A	FOUNTAIN VALLEY CITY	1,889,802.44
072A	LOS ALAMITOS CITY	440,613.75
073A	SAN JUAN CAPISTRANO CITY	1,428,706.93
074A	VILLA PARK CITY	316,678.76
075A	YORBA LINDA CITY	1,155,101.37
076A	IRVINE CITY	2,589,579.17
077A	MISSION VIEJO CITY	1,799,530.03
078A	DANA POINT CITY	3,639,030.31
079A	LAGUNA-NIGUEL CITY	428,065.59
080A	LAKE FOREST CITY	158,973.21
081A	LAGUNA HILLS CITY	58,320.81
082A	LAGUNA WOODS CITY	0.00
083A	RANCHO SANTA MARGARITA CITY	0.00
084A	ALISO VIEJO CITY	490,025.56
703A	ORANGE COUNTY CEMETERY DISTRICT	1,949,529.10
706A	ORANGE COUNTY FIRE AUTHORITY	-9,572,051.22
708A	ORANGE COUNTY TRANSIT AUTHORITY	6,519,029.75
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	28,303,557.49
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	10,188,724.49
716A	BUENA PARK LIBRARY DISTRICT	815,179.25
717A	PLACENTIA LIBRARY DISTRICT	1,727,174.97
721B	CYPRESS MUNI LIGHTING DIST #2	36,977.81
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	3,185,283.73
748B	CYPRESS RECREATION & PARK DIST.	823,402.34
750A	SILVERADO-MODJESKA RECREATION & PARK DIST	34,285.06
757B	COSTA MESA SANITARY DIST-	121,465.14
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	856,230.04
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	1,147,596.78
760A	MIDWAY CITY SANITARY DIST	1,598,964.17
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	956,623.00
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	356,134.27
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	1,211,847.31
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	30,337.32
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	435,094.89
780B	LAGUNA-NIGUEL CSD ( now city of Laguna Niguel)	2,190,610.34
781B	COUNTY SERVICE AREA # 4- now City of Aliso Viejo	132,683.49
781C	COUNTY SERVICE AREA # 4-ZN A now City Aliso Viejo	0.00
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	79,069.66
790A	COUNTY SERVICE AREA # 13-LA MIRADA	566.06
797A	COUNTY SERVICE AREA # 20-LA HABRA	4,918.07
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	727,964.53
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	5,189.30
800B	SOUTH COAST WATER-CAP BCH WATR ID#2-ZN6	243,269.43
803A	EAST ORANGE COUNTY WATER DISTRICT	443,196.50
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	1,311,440.22
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	5,088.65
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	42,109.83
808B	TRABUCO CANYON WATER DIST	1,027,490.23
809A	SANTIAGO COUNTY WATER DISTRICT	217,254.21
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	668,147.80
812A	YORBA LINDA CO WATER DIST	903,715.58
848A	Western Municipal Water District	0.00
849B	Elsinore Valley Municipal Water District	0.00
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2,821.96
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	152,255.61
916E	ORANGE CO SANITATION DIST (OLD OCSD#3)	2,591,118.87
916F	ORANGE CO SANITATION DIST (OLD OCSD#5)	1,313,730.25
916G	ORANGE CO SANITATION DIST (OLD OCSD#6)	639,661.79
916H	ORANGE CO SANITATION DIST (OLD OCSD#7)	246,522.89
916J	ORANGE CO SANITATION DIST (OLD OCSD#11)	1,336,571.17
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	0.00
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	1,439,430.54
932A	SURFSIDE COLONY STORM WATER PROTECTION D	82,794.57
941A	IRVINE CITY-OCSLM DISTRICT #10	393,917.86
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	65,724.07
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	44,038.16
960A	ORANGE COUNTY WATER DISTRICT	0.00
965A	COSTA MESA-VEHICLE PARKING DIST #1	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	21.43
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI	4,035.00
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	68,821.74
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	74,844.65
980A	STANTON MUNI HWY LIGHTING DISTRICT	26,653.65
981A	EL TORO WATER DISTRICT	435,070.86
982B	IRVINE RANCH WATER DIST	116,595.34
982C	IRVINE RANCH WATER DIST IMP DIST #1	58,363.74
982H	IRVINE RANCH WATER DIST IMP DIST 204	374,507.24
982K	IRVINE RANCH WATER DIST IMP DIST 105	36.37
982L	IRVINE RANCH WATER DIST IMP DIST 206	18,397.85
982W	IRVINE RANCH WATER DIST IMP DIST 250	36.31
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	1,045,772.31
984B	MOULTON-NIGUEL WATER DIST	4,075,067.15
984C	MOULTON-NIGUEL WATER DIST-I D # 1	1,570,853.58
984D	MOULTON-NIGUEL WATER DIST-I D # 2	27,430.17
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	304,107.59
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	734,650.37
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	1,750,366.74
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	1,647,425.06
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	634,546.03
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	385,316.01
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	346,717.55
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	129,329.95
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	1,506,286.40
984U	MOULTON-NIGUEL WATER DIST-I D # 8	44,136.97
986B	SANTA MARGARITA WATER DISTRICT	324,351.25
986C	SANTA MARGARITA WATER IMP DIST #1	1,005.07
986D	SANTA MARGARITA WATER IMP DIST #2	28,239.19
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	3,287.88
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	672.32
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	922.99
995B	SUNSET BEACH SANITARY DISTRICT	73,374.32

	TOTAL	553,165,156.84

Educational Revenue Augmentation Fund Contributions 2007 - 2008

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2007 - 2008

DIST	DESCRIPTION	AMOUNT

001C	COUNTY OUTSIDE CITIES W/ OC FIRE AUTH	373,270,835.77
001D	COUNTY INSIDE CITIES W/ OC FIRE AUTH	0.00
001E	COUNTY INSIDE CITIES W/O OC FIRE AUTH	-48.18
002A	ORANGE COUNTY PUBLIC LIBRARY	44,664,951.69
051A	ANAHEIM CITY	7,562,355.04
052B	BREA CITY	1,667,260.97
053B	FULLERTON CITY	4,859,426.29
054A	HUNTINGTON BEACH CITY	11,196,002.77
055B	LAGUNA BEACH CITY	3,580,149.25
055F	LAGUNA BEACH CITY-1979 ANNEX	83.84
056A	LA HABRA CITY	1,641,334.22
057A	NEWPORT BEACH CITY	8,015,025.99
058B	ORANGE CITY	4,678,742.33
059A	PLACENTIA CITY	1,854,848.16
060B	SAN CLEMENTE CITY	3,724,732.11
061B	SANTA ANA CITY	9,094,323.87
062B	SEAL BEACH CITY	1,409,543.39
063B	TUSTIN CITY	2,070,356.79
064A	BUENA PARK CITY	1,620,819.00
065B	COSTA MESA CITY	4,913,875.71
066A	LA PALMA CITY	618,764.47
067A	STANTON CITY	368,399.49
068A	GARDEN GROVE CITY	3,508,553.31
068C	GARDEN GROVE CITY ANX W/O PARAMEDICS TAX	18,316.18
069A	CYPRESS CITY	1,350,156.72
070A	WESTMINSTER CITY	630,900.37
071A	FOUNTAIN VALLEY CITY	2,088,806.14
072A	LOS ALAMITOS CITY	470,542.73
073A	SAN JUAN CAPISTRANO CITY	1,479,028.75
073B	SAN JUAN CAPISTRANO CITY-R/T 97.70 ANNEX	88,535.04
074A	VILLA PARK CITY	336,601.21
075A	YORBA LINDA CITY	1,226,567.45
076A	IRVINE CITY	2,897,087.53
077A	MISSION VIEJO CITY	1,907,971.03
078A	DANA POINT CITY	4,005,670.86
079A	LAGUNA NIGUEL CITY	455,861.59
080A	LAKE FOREST CITY	168,876.75
081A	LAGUNA HILLS CITY	63,336.32
084A	ALISO VIEJO CITY-	526,415.72
703A	ORANGE COUNTY CEMETERY DISTRICT	2,112,507.53
706A	ORANGE COUNTY FIRE AUTHORITY	-10,505,217.68
708A	ORANGE COUNTY TRANSIT AUTHORITY	7,046,990.22
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	30,595,954.48
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	11,013,887.99
716A	BUENA PARK LIBRARY DISTRICT	847,674.44
717A	PLACENTIA LIBRARY DISTRICT	1,854,114.63
721B	CYPRESS MUNI LIGHTING DIST #2	39,070.96
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	3,443,308.08
748B	CYPRESS RECREATION & PARK DIST.	870,969.67
750A	SILVERADO-MODJESKA RECREATION & PARK DIS	35,038.27
757B	COSTA MESA SANITARY DIST-	132,659.42
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	968,115.49
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	1,227,274.50
760A	MIDWAY CITY SANITARY DIST	1,640,104.01
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	1,069,431.19
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	383,229.26
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	1,334,493.58
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	33,924.21
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	473,912.88
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	2,336,036.71
781B	COUNTY SERVICE AREA # 4-LEISURE WORLD	142,550.60
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	84,495.41
790A	COUNTY SERVICE AREA # 13-LA MIRADA	594.59
797A	COUNTY SERVICE AREA # 20-LA HABRA	5,111.92
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	794,579.20
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	5,595.74
800B	SOUTH COAST WATER-CAP BCH WATR ID2-ZN6	269,475.95
803A	EAST ORANGE COUNTY WATER DISTRICT	476,468.56
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	1,443,182.00
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	5,125.20
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	45,283.96
808B	TRABUCO CANYON WATER DIST	1,093,761.68
809A	SANTIAGO COUNTY WATER DISTRICT	222,538.63
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	741,828.92
812A	YORBA LINDA CO WATER DIST	966,400.20
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2,993.20
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	159,520.38
916E	ORANGE CO SANITATION DIST (OLD OCSD#3)	2,762,318.29
916F	ORANGE CO SANITATION DIST (OLD OCSD#5)	1,432,252.07
916G	ORANGE CO SANITATION DIST (OLD OCSD#6)	691,271.12
916H	ORANGE CO SANITATION DIST (OLD OCSD#7)	280,827.85
916J	ORANGE CO SANITATION DIST (OLD OCSD#11)	1,426,817.12
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	1,583,718.45
932A	SURFSIDE COLONY STORM WATER PROTECTION D	92,583.66
941A	IRVINE CITY-OCSLM DISTRICT #10	424,916.27
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	72,548.32
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	46,899.52
965A	COSTA MESA-VEHICLE PARKING DIST #1	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	21.70
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI	4,398.98
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	74,050.48
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	74,796.16
980A	STANTON MUNI HWY LIGHTING DISTRICT	26,613.16
981A	EL TORO WATER DISTRICT	468,422.19
982B	IRVINE RANCH WATER DIST	124,335.58
982C	IRVINE RANCH WATER DIST IMP DIST #1	59,773.47
982E	IRVINE RANCH WATER DIST IMP DIST #2	90,792.63
982F	IRVINE RANCH WATER DIST IMP DIST #3	67,693.10
982G	IRVINE RANCH WATER DIST IMP DIST 104	159,766.47
982H	IRVINE RANCH WATER DIST IMP DIST 204	419,456.28
982K	IRVINE RANCH WATER DIST IMP DIST 105	35.16
982L	IRVINE RANCH WATER DIST IMP DIST 206	20,424.52
982W	IRVINE RANCH WATER DIST IMP DIST 250	35.09
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	1,120,141.55
984B	MOULTON-NIGUEL WATER DIST	4,340,962.82
984C	MOULTON-NIGUEL WATER DIST-I D # 1	1,668,804.22
984D	MOULTON-NIGUEL WATER DIST-I D # 2	29,119.67
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	322,838.46
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	780,528.94
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	1,857,370.69
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	1,764,212.15
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	683,233.80
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	409,405.12
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	365,327.05
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	136,271.42
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	1,586,330.84
984U	MOULTON-NIGUEL WATER DIST-I D # 8	45,707.60
986B	SANTA MARGARITA WATER DISTRICT	354,209.29
986C	SANTA MARGARITA WATER IMP DIST #1	1,064.79
986D	SANTA MARGARITA WATER IMP DIST #2	29,915.42
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	3,531.86
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	708.79
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	952.69
995B	SUNSET BEACH SANITARY DISTRICT	84,190.21

	TOTAL	597,437,712.32

Educational Revenue Augmentation Fund Contributions 2008 - 2009

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2008 - 2009

DIST	DESCRIPTION	AMOUNT

001C	COUNTY OUTSIDE CITIES W/ OC FIRE AUTH	385,645,432.57
001D	COUNTY INSIDE CITIES W/ OC FIRE AUTH	0.00
001E	COUNTY INSIDE CITIES W/O OC FIRE AUTH	-48.18
002A	ORANGE COUNTY PUBLIC LIBRARY	46,279,455.61
051A	ANAHEIM CITY	7,786,346.72
052B	BREA CITY	1,725,048.86
053B	FULLERTON CITY	5,008,712.98
054A	HUNTINGTON BEACH CITY	11,517,192.31
055B	LAGUNA BEACH CITY	3,831,667.11
055F	LAGUNA BEACH CITY-1979 ANNEX	225.63
056A	LA HABRA CITY	1,672,744.35
057A	NEWPORT BEACH CITY	8,389,900.31
058B	ORANGE CITY	4,742,829.38
059A	PLACENTIA CITY	1,885,244.79
060B	SAN CLEMENTE CITY	3,823,604.68
061B	SANTA ANA CITY	9,141,947.84
062B	SEAL BEACH CITY	1,550,318.12
063B	TUSTIN CITY	2,126,875.09
064A	BUENA PARK CITY	1,634,163.95
065B	COSTA MESA CITY	5,101,110.49
066A	LA PALMA CITY	632,435.22
067A	STANTON CITY	368,183.01
068A	GARDEN GROVE CITY	3,573,419.39
068C	GARDEN GROVE CITY ANX W/O PARAMEDICS TAX	18,431.56
069A	CYPRESS CITY	1,397,174.18
070A	WESTMINSTER CITY	630,844.92
071A	FOUNTAIN VALLEY CITY	2,105,175.19
072A	LOS ALAMITOS CITY	490,865.48
073A	SAN JUAN CAPISTRANO CITY	1,515,812.09
073B	SAN JUAN CAPISTRANO CITY-R/T 97.70 ANNEX	89,656.50
074A	VILLA PARK CITY	347,941.24
075A	YORBA LINDA CITY	1,249,363.96
076A	IRVINE CITY	3,099,482.18
077A	MISSION VIEJO CITY	1,910,258.52
078A	DANA POINT CITY	4,190,674.49
079A	LAGUNA NIGUEL CITY	461,983.22
080A	LAKE FOREST CITY	173,547.15
081A	LAGUNA HILLS CITY	62,377.00
084A	ALISO VIEJO CITY-	676,524.60
703A	ORANGE COUNTY CEMETERY DISTRICT	2,184,839.25
706A	ORANGE COUNTY FIRE AUTHORITY	-10,885,840.37
708A	ORANGE COUNTY TRANSIT AUTHORITY	7,277,069.77
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	31,595,043.29
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	11,373,532.76
716A	BUENA PARK LIBRARY DISTRICT	850,449.51
717A	PLACENTIA LIBRARY DISTRICT	1,884,104.97
721B	CYPRESS MUNI LIGHTING DIST #2	40,430.30
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	3,555,729.92
748B	CYPRESS RECREATION & PARK DIST.	900,585.91
750A	SILVERADO-MODJESKA RECREATION & PARK DIS	35,448.56
757B	COSTA MESA SANITARY DIST-	137,982.56
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	955,675.78
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	1,248,617.17
760A	MIDWAY CITY SANITARY DIST	1,655,107.13
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	1,133,598.79
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	410,576.43
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	1,423,798.99
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	34,699.29
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	517,557.67
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	2,369,252.87
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	86,663.33
790A	COUNTY SERVICE AREA # 13-LA MIRADA	610.17
797A	COUNTY SERVICE AREA # 20-LA HABRA	5,215.56
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	834,533.32
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	5,692.44
800B	SOUTH COAST WATER-CAP BCH WATR ID2-ZN6	278,017.06
803A	EAST ORANGE COUNTY WATER DISTRICT	489,185.59
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	1,542,413.89
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	5,096.25
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	49,272.58
808B	TRABUCO CANYON WATER DIST	1,105,847.77
809A	SANTIAGO COUNTY WATER DISTRICT	224,852.67
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	783,365.90
812A	YORBA LINDA CO WATER DIST	988,420.28
914A	YORBA LINDA GREENBELT MAINT. DIST #1	3,041.48
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	164,435.96
916E	ORANGE CO SANITATION DIST (OLD OCSD#3)	2,834,750.14
916F	ORANGE CO SANITATION DIST (OLD OCSD#5)	1,515,759.00
916G	ORANGE CO SANITATION DIST (OLD OCSD#6)	716,675.47
916H	ORANGE CO SANITATION DIST (OLD OCSD#7)	310,751.54
916J	ORANGE CO SANITATION DIST (OLD OCSD#11)	1,461,759.02
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	0.00
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	1,684,829.85
932A	SURFSIDE COLONY STORM WATER PROTECTION D	94,698.97
941A	IRVINE CITY-OCSLM DISTRICT #10	454,765.74
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	77,641.03
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	47,936.96
965A	COSTA MESA-VEHICLE PARKING DIST #1	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	22.80
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI	4,587.01
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	76,512.74
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	74,790.11
980A	STANTON MUNI HWY LIGHTING DISTRICT	26,595.76
981A	EL TORO WATER DISTRICT	468,528.02
982B	IRVINE RANCH WATER DIST	123,507.39
982C	IRVINE RANCH WATER DIST IMP DIST #1	63,327.72
982E	IRVINE RANCH WATER DIST IMP DIST #2	94,130.74
982F	IRVINE RANCH WATER DIST IMP DIST #3	71,650.47
982G	IRVINE RANCH WATER DIST IMP DIST 104	176,789.88
982H	IRVINE RANCH WATER DIST IMP DIST 204	462,932.08
982K	IRVINE RANCH WATER DIST IMP DIST 105	35.78
982L	IRVINE RANCH WATER DIST IMP DIST 206	20,385.49
982W	IRVINE RANCH WATER DIST IMP DIST 250	35.71
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	1,168,232.63
984B	MOULTON-NIGUEL WATER DIST	4,435,518.21
984C	MOULTON-NIGUEL WATER DIST-I D # 1	1,687,835.26
984D	MOULTON-NIGUEL WATER DIST-I D # 2	29,088.22
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	322,489.80
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	784,828.57
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	1,879,202.83
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	1,824,798.51
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	717,802.55
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	404,417.35
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	368,542.56
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	137,470.83
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	1,599,580.05
984U	MOULTON-NIGUEL WATER DIST-I D # 8	47,030.76
986B	SANTA MARGARITA WATER DISTRICT	353,267.38
986C	SANTA MARGARITA WATER IMP DIST #1	1,062.25
986D	SANTA MARGARITA WATER IMP DIST #2	30,096.29
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	3,610.82
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	704.02
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	918.47
995B	SUNSET BEACH SANITARY DISTRICT	86,099.90

	TOTAL	616,867,964.64

Educational Revenue Augmentation Fund Contributions 2009 - 2010

CONTRIBUTIONS BY TAXING AGENCY TO THE
EDUCATIONAL REVENUE AUGMENTATION FUND
Fiscal Year 2009 - 2010

DIST	DESCRIPTION	AMOUNT

001C	COUNTY OUTSIDE CITIES W/ OC FIRE AUTH	380,750,658.23
001D	COUNTY INSIDE CITIES W/ OC FIRE AUTH	0.00
001E	COUNTY INSIDE CITIES W/O OC FIRE AUTH	-48.18
002A	ORANGE COUNTY PUBLIC LIBRARY	45,802,539.49
051A	ANAHEIM CITY	7,660,575.87
052B	BREA CITY	1,679,929.47
053B	FULLERTON CITY	4,968,073.68
054A	HUNTINGTON BEACH CITY	11,538,530.82
055B	LAGUNA BEACH CITY	3,976,813.08
055F	LAGUNA BEACH CITY-1979 ANNEX	88.86
056A	LA HABRA CITY	1,600,080.20
057A	NEWPORT BEACH CITY	8,500,949.07
058B	ORANGE CITY	4,597,750.01
059A	PLACENTIA CITY	1,843,409.87
060B	SAN CLEMENTE CITY	3,759,484.04
061B	SANTA ANA CITY	8,299,116.34
062B	SEAL BEACH CITY	1,544,664.18
063B	TUSTIN CITY	2,082,205.21
064A	BUENA PARK CITY	1,599,328.03
065B	COSTA MESA CITY	5,122,986.71
066A	LA PALMA CITY	628,443.29
067A	STANTON CITY	367,124.20
068A	GARDEN GROVE CITY	3,432,074.15
068C	GARDEN GROVE CITY ANX W/O PARAMEDICS TAX	18,170.38
069A	CYPRESS CITY	1,376,771.95
070A	WESTMINSTER CITY	630,349.42
071A	FOUNTAIN VALLEY CITY	2,135,015.50
072A	LOS ALAMITOS CITY	492,824.43
073A	SAN JUAN CAPISTRANO CITY	1,474,544.88
073B	SAN JUAN CAPISTRANO CITY-R/T 97.70 ANNEX	87,918.71
074A	VILLA PARK CITY	349,031.50
075A	YORBA LINDA CITY	1,226,225.62
076A	IRVINE CITY	3,106,402.04
077A	MISSION VIEJO CITY	1,869,898.34
078A	DANA POINT CITY	4,105,282.75
079A	LAGUNA NIGUEL CITY	449,097.24
080A	LAKE FOREST CITY	170,591.11
081A	LAGUNA HILLS CITY	61,629.48
084A	ALISO VIEJO CITY-	662,800.19
703A	ORANGE COUNTY CEMETERY DISTRICT	2,158,256.97
706A	ORANGE COUNTY FIRE AUTHORITY	-10,752,894.15
708A	ORANGE COUNTY TRANSIT AUTHORITY	7,185,085.31
710A	ORANGE COUNTY FLOOD CONTROL DISTRICT	31,195,790.74
713A	ORG CO HARBORS,BEACHES & PARKS CSA 26	11,229,794.18
716A	BUENA PARK LIBRARY DISTRICT	831,028.91
717A	PLACENTIA LIBRARY DISTRICT	1,841,635.97
721B	CYPRESS MUNI LIGHTING DIST #2	39,840.98
744A	ORANGE COUNTY VECTOR CONTROL DISTRICT	3,510,764.86
748B	CYPRESS RECREATION & PARK DIST.	887,588.90
750A	SILVERADO-MODJESKA RECREATION & PARK DIS	34,810.66
757B	COSTA MESA SANITARY DIST-	138,872.29
758A	SOUTH COAST WATER-DANA POINT SANI-ZN 3	941,663.68
759B	GARDEN GROVE SUBSIDIARY SANITARY DIST	1,193,999.78
760A	MIDWAY CITY SANITARY DIST	1,652,049.89
766A	SOUTH COAST WATER-SCWD#1S SEWER-ZN 2	1,144,049.14
774A	CAPISTRANO BAY COMMUNITY SERVICE DIST	433,417.67
775A	EMERALD BAY COMMUNITY SERVICE DISTRICT	1,494,628.81
776A	SURFSIDE COLONY COMMUNITY SERVICE DIST	35,720.15
777A	THREE ARCH BAY COMMUNITY SERVICES DIST	555,275.79
780B	LAGUNA-NIGUEL COMMUNITY SERVICES DIST.	2,302,283.20
782B	NORTH TUSTIN LANDSCP & LTG ASSMT DIST	86,254.79
790A	COUNTY SERVICE AREA # 13-LA MIRADA	608.31
797A	COUNTY SERVICE AREA # 20-LA HABRA	5,124.68
798A	ROSSMOOR COMMUNITY SERVICES DISTRICT	846,082.98
799A	COUNTY SERVICE AREA # 22-E YORBA LINDA	5,681.89
800B	SOUTH COAST WATER-CAP BCH WATR ID2-ZN6	276,215.11
803A	EAST ORANGE COUNTY WATER DISTRICT	484,559.85
805B	LAGUNA BEACH SUBSIDIARY CO WATER DIST	1,598,388.76
805C	LAGUNA BEACH SUBSIDIARY CO WATER-LAG CYN	5,275.97
806A	ROSSMOOR/ LOS ALAMITOS AREA SEWER DIST	48,147.14
808B	TRABUCO CANYON WATER DIST	1,089,132.54
809A	SANTIAGO COUNTY WATER DISTRICT	223,257.90
810A	SOUTH COAST WATER-SCWD-ZN 1 WATER	790,094.24
812A	YORBA LINDA CO WATER DIST	975,543.10
914A	YORBA LINDA GREENBELT MAINT. DIST #1	2,985.54
916A	ORANGE CO SANITATION DIST (OLD OCSD#2)	162,000.31
916E	ORANGE CO SANITATION DIST (OLD OCSD#3)	2,782,898.60
916F	ORANGE CO SANITATION DIST (OLD OCSD#5)	1,549,570.92
916G	ORANGE CO SANITATION DIST (OLD OCSD#6)	712,254.53
916H	ORANGE CO SANITATION DIST (OLD OCSD#7)	377,088.38
916J	ORANGE CO SANITATION DIST (OLD OCSD#11)	1,466,961.64
919A	ORANGE CO SANITATION DIST (OLD OCSD#5)	0.00
922A	ORANGE CO SANITATION DIST (OLD OCSD#7)	1,610,404.75
932A	SURFSIDE COLONY STORM WATER PROTECTION D	97,485.04
941A	IRVINE CITY-OCSLM DISTRICT #10	460,056.85
955A	LAGUNA BEACH MUNI ST LIGHTING DIST #1	80,345.19
958A	YORBA LINDA MUNI ST LTG MAINT DIST #1	46,729.86
965A	COSTA MESA-VEHICLE PARKING DIST #1	27.88
966A	COSTA MESA-VEHICLE PARKING DIST #2	22.80
967A	GARDEN GROVE-VEHICLE PARKING DIST #2	92.77
969A	NEWPORT BEACH AD#50-BALBOA ISLAND LTG DI	4,740.62
970A	SAN CLEMENTE ST LTG & LANDSCP DIST #1	76,999.85
971A	WESTMINSTER MUNI HWY LIGHTING DIST.	74,731.31
980A	STANTON MUNI HWY LIGHTING DISTRICT	26,594.91
981A	EL TORO WATER DISTRICT	456,975.31
982B	IRVINE RANCH WATER DIST	117,948.77
982C	IRVINE RANCH WATER DIST IMP DIST #1	63,289.85
982E	IRVINE RANCH WATER DIST IMP DIST #2	92,976.67
982F	IRVINE RANCH WATER DIST IMP DIST #3	74,956.37
982G	IRVINE RANCH WATER DIST IMP DIST 104	184,993.57
982H	IRVINE RANCH WATER DIST IMP DIST 204	472,089.19
982K	IRVINE RANCH WATER DIST IMP DIST 105	19.12
982L	IRVINE RANCH WATER DIST IMP DIST 206	19,890.30
982W	IRVINE RANCH WATER DIST IMP DIST 250	19.03
983A	IRVINE RANCH WATER DIST-LOS ALISOS WATER	1,159,600.97
984B	MOULTON-NIGUEL WATER DIST	4,310,275.64
984C	MOULTON-NIGUEL WATER DIST-I D # 1	1,638,088.43
984D	MOULTON-NIGUEL WATER DIST-I D # 2	28,102.54
984E	MOULTON-NIGUEL WATER DIST-I D # 2A	311,562.03
984G	MOULTON-NIGUEL WATER DIST-I D # 3A	766,711.63
984H	MOULTON-NIGUEL WATER DIST-I D # 1A	1,824,901.53
984K	MOULTON-NIGUEL WATER DIST-I D # 4A	1,771,933.82
984L	MOULTON-NIGUEL WATER DIST-I D # 4A1	702,650.16
984M	MOULTON-NIGUEL WATER DIST-I D # 4A2	376,635.37
984N	MOULTON-NIGUEL WATER DIST-I D # 4A3	358,961.53
984P	MOULTON-NIGUEL WATER DIST-I D # 4-3	133,896.96
984R	MOULTON-NIGUEL WATER DIST-I D # 5A	1,564,602.26
984U	MOULTON-NIGUEL WATER DIST-I D # 8	46,144.31
986B	SANTA MARGARITA WATER DISTRICT	335,351.59
986C	SANTA MARGARITA WATER IMP DIST #1	1,041.50
986D	SANTA MARGARITA WATER IMP DIST #2	29,378.63
987F	YORBA LINDA LANDSCAPE MAINT DIST #7	3,645.79
987G	YORBA LINDA LANDSCAPE MAINT DIST #8	664.37
987H	YORBA LINDA LANDSCAPE MAINT DIST #9	940.72
995B	SUNSET BEACH SANITARY DISTRICT	90,832.94

	TOTAL	608,930,433.80

Accounting Coding Changes for Major Department/Agency Reorganization

SUBJECT:

ACCOUNTING CODING CHANGES FOR MAJOR DEPARTMENT/AGENCY REORGANIZATION
NUMBER:

F.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS, AGENCIES, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 10/01/94
Revised: 05/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

When major department/agency reorganizations take place, it is the responsibility of the department/agency involved to oversee the reorganization process and make certain that all of the necessary tasks are completed on schedule.

1.1 Purpose

To provide guidelines for major department/agency reorganizations where agency account codes are impacted and changes in agency account codes are required.

1.2 Authority

Board of Supervisors' Resolution No. 82-162 dated February 2, 1982 authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors.

1.3 Definition

1.3.1 Major Agency Reorganization

A "major agency reorganization" is defined as a reorganization at the department/agency level that involves a consolidation or separation of departments/agencies which impact the existing agency account codes being used, as well as possibly other coding. Major reorganizations normally require approval of the Board of Supervisors (Board) and must be reviewed and approved by the County Executive Office (CEO) before being submitted to the Board. Major reorganizations should be coordinated with the annual budget process. A "minor reorganization" is defined as an internal reorganization within a department/agency at the organization level, and does not impact the existing agency account codes being used.

1.3.2 Advantage Financial System (AFNS)

AFNS is the County's corporate financial and purchasing system.

1.3.3 Advantage Human Resources System (AHRS)

AHRS is the County's personnel and payroll system.

1.3.4 CAPS

CAPS is the umbrella acronym for the County Accounting and Personnel System comprised of the AFNS and AHRS systems.

1.4 Responsibilities

1.4.1 Coordination Meeting

For a major reorganization, the department/agency involved should set up a coordination meeting as soon as possible with the AFNS operational areas that might be affected as follows:

County Executive Office (CEO):

County Budget Office

Purchasing

Auditor-Controller (A/C):

CAPS Systems Administration

Revenue & Budget Unit

General Ledger Unit

Claims Section

Systems (if the department/agency is a job cost user)

Tax Unit (if the department/agency receives property tax revenue)

Agency Accounting Unit (if applicable)

1.4.2 Human Resources

In addition, if Human Resources is affected by the reorganization, include the following AHRS operational units:

CEO/Human Resources - Records

A/C - Payroll

A/C - Systems

2. PROCEDURE

Before the transfer of expense budget and revenue budget data, expenditures, revenues, encumbrances, balance sheet account balances, and positions/employees can take place, the appropriate chart of accounts tables and payroll master tables must be updated for the new agency codes, organization codes, activity codes, etc. in AFNS and AHRS. Departmental/agency systems that interface with CAPS may need to be revised to reflect new account codes resulting from the reorganization. Examples of such systems might be payroll feeder systems, JV/PV interface files, etc.

3. GUIDELINES

The following provides some general guidelines and contacts for coordination of the reorganization process.

3.1 Expense Budget and Revenue Budget Amounts

3.1.1 Contacts

A/C General Ledger Manager
A/C General Ledger Supervisor

3.1.2 How Accomplished

The General Ledger Unit will enter online Expense Budget (EB) or Revenue Budget (RB) documents to transfer current fiscal year appropriations and estimated revenue balances to the new account coding. Generally, these transfers will require an Agenda Item Transmittal (AIT) for approval by the Board. The department/agency involved in the reorganization will be responsible for providing the necessary information in the AIT or on Expense Budget Transfer of Revenue Budget Transfer forms in the format needed for data entry.

3.2 Current Year Open Purchase Requisition (RX) and Stock Requisition (SR) Documents

3.2.1 Contacts

CEO/Purchasing Manager
CEO/CAPS - EPS/ICS Control

3.2.2 How Accomplished

The department/agency will be responsible for entering online RX and SR modifications to its open purchase and stock requisitions to change the account coding.

3.3 Current Year Open EPS Purchase Orders (PC and PG Documents)

3.3.1 Contacts

CEO/Purchasing Manager
CEO/CAPS - EPS/ICS Control

3.3.2 How Accomplished

For current year Centralized Purchase Orders (PC) and Price Agreement Orders (PG) originally created online by the department/agency that is being reorganized, the department/agency will be responsible for entering PC and PG modifications to revise the account coding to the new coding.

3.4 Current Year Open Contract Encumbrances (PO Documents)

3.4.1 Contacts

Central A/C Contract Processing:

A/C Claims Manager

A/C Non-PO Claims Unit Supervisor

Decentralized Contract Processing:

A/C Agency Accounting Manager

3.4.2 How Accomplished

Central A/C Contract Processing: For current year contract encumbrances (PO documents), the Non-PO Claims Unit will enter online PO modifications to revise the old coding to the new coding. The department/agency involved in the reorganization will be responsible for providing the necessary information to the Non-PO Claims Unit in a format required by the Non-PO Claims Unit.

Decentralized Contract Processing: For current year contract encumbrances, the A/C Agency Accounting Unit will enter online PO modifications to revise the old coding to the new coding.

3.5 Prior Year Open Purchase Requisitions (RX), Stock Requisitions (SR),
EPS Purchase Orders (PC, PG), and Contract Encumbrances (PO)

3.5.1 Contacts

CEO/Purchasing Manager
CEO/CAPS - EPS/ICS Control
A/C Claims Manager (for contract encumbrances)
A/C Non-PO Claims Unit Supervisor (for contract encumbrances)
A/C Agency Accounting Unit (if applicable) (for contract encumbrances)

3.5.2 How Accomplished

For prior year open purchase requisitions (RX), stock requisitions (SR), EPS purchase orders (PC, PG), and contract encumbrances (PO), there are only two options available:

Leave the prior year documents as they are and process them in the normal way against the old coding.

Modify the documents to zero or cancel the documents, whichever is appropriate, and re-enter them in the current year with the new coding as new requisitions, purchase orders, and contract encumbrances.

3.6 YTD Expenditure Balances, Revenue Balances, and Balance Sheet
Account Balances

3.6.1 Contacts

A/C General Ledger Manager
A/C General Ledger Supervisor
A/C Agency Accounting Unit (if applicable)

3.6.2 How Accomplished

The department/agency involved in the reorganization will be responsible for preparing journal voucher forms to transfer the year-to-date actual expenditure, revenue, or balance sheet account balances to the new account coding. The journal voucher forms will be submitted to the General Ledger Unit for review and entry to AFNS.

3.7 Account Code Changes Necessary for Various Service Billings

3.7.1 Contacts

CEO/CIO
A/C PFRD Accounting Manager
Sheriff/Communications

3.7.2 How Accomplished

The department/agency involved in the reorganization will be responsible for contacting the service provider Agency Accounting Unit or appropriate contact and notifying it of the account coding changes that will affect the various service billings. The service billings include:

Equipment Billing

Pool Vehicles - PFRD

Assigned Vehicles - PFRD

CUTS Billing

Utilities - PFRD

Telephones - CEO/CIO

Job Billing

Data Systems - CEO/CIO

Facilities Operations - PFRD

Communications - Sheriff/Communications

Architect & Engineering Services - PFRD

OCTNET Billing - CEO/CIO

3.8 Account Code Changes Necessary for Various Service Billings

3.8.1 Contacts

Department/Agency Human Resources Section
CEO/Human Resources - Records
A/C - Central Payroll
A/C - Systems/CAPS Labor Distribution
A/C - CAPS Systems Administration

3.8.2 How Accomplished

The department/agency involved in the reorganization will be responsible for contacting its human resources section, CEO/Human Resources, A/C Central Payroll, A/C Systems and A/C CAPS Administration, notifying them of its intent to reorganize. This will allow all of the above parties to assist in coordinating and determining the appropriate updates to the AHRS employee and position database, to the AHRS reference tables, and to the operating procedure documentation required to implement the reorganization.

3.9 Expense and Revenue Budget Impact (AFNS/Advanced Budget Preparation)

3.9.1 Contacts

CEO/ County Budget Office Manager
CEO/Budget System Administrator

3.9.2 How Accomplished

The department/agency involved in the reorganization will notify the CEO County Budget Office of its intent to reorganize. Once determinations are made as to where prior budget amounts will reside, a realignment transaction (RN) can be processed. If the reorganization involves a change of activity code(s), the CEO Budget System Administrator will make the change to the ACTV table and work with A/C Systems staff to ensure that all changes in organization codes, budget levels, and activity codes are appropriately implemented.

3.10 Job Cost Master Table Changes

3.10.1 Contacts

A/C Systems/Cost
A/C Agency Accounting Unit (if applicable)

3.10.2 How Accomplished

The department/agency involved in the reorganization will notify the A/C Systems cost team of its intent to reorganize. Once a determination of impact to the Job System is made, A/C Systems will assist the department/agency in updating the appropriate Job Master Tables as needed.

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Contributions to Internal Service & Enterprise Funds

SUBJECT:

CONTRIBUTIONS TO INTERNAL SERVICE AND ENTERPRISE FUNDS

NUMBER:

F.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS/AGENCIES

EFFECTIVE: 07/01/84

1. POLICY

Cash contributions made by the County General Fund, or other funds, to Proprietary (Internal Service and Enterprise) Funds are to be budgeted and accounted for as appropriations and expenditures in the contributor fund and as estimated revenues and revenues in the recipient fund. Contributions of fixed assets are to be recorded as investment in Proprietary Funds in the contributor fund and as contributed capital in the recipient Proprietary Funds.

1.1 Purpose

To account for contributions as prescribed by the State Controller's Accounting Standards and Procedures for Counties, as revised effective July 1984.

1.2 Authority

1.2.1 Board of Supervisors Resolution Ho. 82-162 authorizing the Auditor-Controller to prescribe accounting policies, and

1.2.2 Accounting Standards and Procedures for Counties, State of California, Chapter 13.

1.3 Definitions

1.3.1 Internal Service Funds

Internal Service Funds are those funds in the 2800-2999 range of fund numbers which are used to account for financing of goods and/or services provided by one department/agency to other departments/agencies on a cost-reimbursement basis.

1.3.2 Enterprise Funds

Enterprise Funds are those funds in the 2800-2999 range of fund numbers which are used to account for operations financed primarily by user charges.

1.3.3 Proprietary Funds

Proprietary Funds is the term used to describe the operational nature of Enterprise and Internal Service Funds. Accounting records for Proprietary Funds are maintained on a basis of accounting different than that used for governmental funds (such as the General Fund). Proprietary Funds use the accrual basis of accounting in essentially the same manner as in commercial accounting. Recognition for transactions occurs when revenues are earned and when expenses are incurred.

2. PROCEDURE

2.1 Cash Contributions

2.1.1 Basis for Cash Contributions

Cash contributions to Internal Service Funds are generally made to cover the following:

Start-up costs of a new Internal Service Fund

First-time acquisitions of fixed asset equipment items.

Increased cost of fixed asset equipment replacement over the equipment's original cost.

Cash contributions to Enterprise Funds are generally made to cover the following:

Start-up costs of a new Enterprise Fund.

Partial funding of operations on an ongoing basis.

Operating deficits.

The amount of required cash contributions is determined by the department/agency responsible for the recipient fund, and is subject to review and approval by the County Administrative Office. The Agenda Item Transmittal is prepared by the responsible department/agency and is submitted to the Auditor-Controller for concurrence prior to being submitted to the County Administrative Office and the Board of Supervisors for approval.

2.1.2 Responsibility for Budgeting

The Auditor-Controller is responsible for budgeting cash contributions to Proprietary Funds based upon amounts requested by the responsible department/agency (2.1.1 above) and approved by the CAO.

2.1.3 Recording Budgetary Entries

Appropriations for contributions from the County General Fund are budgeted in the Miscellaneous FUBU (0352) in the Residual Equity Transfers Out object (500). The first three digits of the recipient fund number are used as a subobject. Estimated revenues for contributions to be received are budgeted in the recipient fund in the Residual Equity Transfers In object (783). A 010 subobject is used for contributions from the County General Fund. For contributor funds other than the County General Fund, the first three digits of the contributor fund number are used as a subobject. For example, a contribution from the Revenue Sharing Fund (1221) is budgeted as 783-122 in the recipient fund.

2.1.4 Budget Adjustments

Any mid-year adjustments to budgeted amounts must be coordinated with the Auditor-Controller's Office. The originating department/agency is responsible for preparing the Agenda Item Transmittal (AlT) and requesting review and concurrence by the Auditor-Controller's Office prior to being sent to the CAO and the Board of Supervisors for approval.

2.1.5 Approval for Cash Contributions

During the year, Board of Supervisors approval must be obtained for each transfer of budgeted contributions from the General Fund, or other contributor fund, to Proprietary Funds.

2.1.6 Recording Cash Contributions

Upon Board approval, the Auditor-Controller charges 0352-500-XXX (or other contributor fund's object 500) and transfers cash to the appropriate fund. The Auditor-Controller also debits the 806 object (Investment in Internal Service and Enterprise Funds) using the first three digits of the recipient fund as a subobject, and credits the 950 object (Balance to Investments in Proprietary Funds) of the contributing fund.

The transfers are recorded to the 783-XXX revenue object in the recipient fund. At year end, the Auditor-Controller closes the accumulated amounts in object 783 to the Contributions from Other Funds equity account (982).

2.2 Fixed Asset Contributions

2.2.1 Approval for Fixed Asset Contributions

During the year, Board of Supervisors approval must be obtained for each contribution of fixed assets.

2.2.2 Recording Fixed Asset Contributions

After Board approval has been obtained for fixed asset contributions, the following entries are recorded in the respective funds.

In the contributing fund:

Debit 0100 - 806 - 2XX - Investment in Internal Service and Enterprise Funds
Credit 0100 - 950 - 806 - Balance to Investments in Proprietary Funds

In the recipient fund:

Debit 2XX1 - 86X - Fixed Asset Account
Credit 2XX1 - 982 - 010 - Contributions from Other Funds

2.2.3 Alternative Method of Procuring Fixed Assets

Fixed Assets may be sold to Proprietary Funds at fair market value subject to normal budgetary/approval considerations. This type of transaction must be coordinated through GSA Procurement/Surplus.

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Requesting Establishment/Deletion of Funds/Agencies

SUBJECT:

REQUESTING ESTABLISHMENT/DELETION OF FUNDS/AGENCIES

NUMBER:

F.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS, AGENCIES, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 11/19/96
REVISED: 1/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Funds and agencies must be established, and obsolete funds and agencies must be deleted, either by action of the Board of Supervisors (Board) or by request to the Auditor-Controller, with the concurrence of the County Executive Office (CEO).

1.1 Purpose

To provide control over, and establish a procedure for, creating new funds and new agencies, and deleting obsolete funds and agencies, from the County's Chart of Accounts.

1.2 Authority

1.2.1 Government Code Section 25252

Government Code Section 25252 allows the Board to establish or abolish funds as necessary for the proper transaction of the business of the County, and provides that the Board may by resolution authorize the Auditor-Controller to perform these functions.

1.2.2 Board of Supervisors Resolution No. 71-1006

Board Resolution No. 71-1006 dated September 14, 1971 authorized the Auditor-Controller to establish and abolish funds as provided in Government Code Section 25252.

1.2.3 Government Code Section 53684

Government Code Section 53684 allows the County Treasurer, upon approval of the Board, to accept deposits of funds from local agencies into the County Treasury, upon the adoption of a resolution by the legislative or governing body of the local agency authorizing the investment of funds and with the consent of the County Treasurer.

1.2.4 Board of Supervisors Resolution No. 97-550

Board Resolution No. 97-550 dated December 16, 1997 authorized the Treasurer-Tax Collector to deposit excess funds of local agencies into the County Treasury pursuant to Government Code Section 53684, subject to Board approval of each local agency's participation, and the prohibition of participation by agencies located outside of Orange County.

1.3 Definition

1.3.1 Fund

A fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions or limitations.

1.3.2 Agency

For multiple-agency funds (Fund 100 - General Fund, Fund 101 - Cash Overage Fund, and Fund 300 - Non-Interest Earning Trust Fund), agencies are subsets of the funds. Agencies are classifications of expenditure requirements into appropriately identified accounting, budgetary, or cost centers, as deemed necessary for management control of the County's operations. For example, agencies within the County General Fund denote separate County departments and agencies. Similarly, agencies within Trust Fund 300 denote separate non-interest earning trust accounts administered by separate County departments and agencies. For multiple-agency funds, agencies utilize one common cash account. For all other funds, the agency number and the fund number are the same.

2. PROCEDURE

2.1 Requirement for New Fund or Agency

2.1.1 Legal/Policy Requirement

In order to be established, a new fund or a new agency must be required by state statute or regulation, federal law or regulation, court order, or other legal requirement, or must have a compelling policy or administrative reason for being established.

2.1.2 County Executive Office Approval

The policy or administrative reason for the fund or agency must be discussed with and approved by the CEO before a request to establish the fund or agency is prepared.

2.2 Approvals for Establishment of Fund or Agency

2.2.1 Board of Supervisors' Approval

A new fund or agency which is required to be established by the Board, because the statute, regulation or other authority requires that the fund or agency be established by Board action, must be submitted to the Board on an Agenda Item Transmittal (AIT). The AIT must be submitted to the Auditor-Controller and to the CEO for review, and concurrence must be obtained from the CEO.

2.2.2 Auditor-Controller/CEO Approval

A new fund or agency which does not require Board action to be established must first be discussed with and approved by the CEO (see 2.1.2 above) before a request to establish the fund or agency is prepared. If authorized by the CEO, the department/agency must request the new fund or agency to be established by a letter to the Auditor-Controller, signed by the department/agency head, with a copy to the appropriate CEO analyst. Auditor-Controller staff will review the request and send the original to the CEO for concurrence before the fund or agency is opened.

2.2.3 Board Approval: Mid-Year Creation

If the fund or agency is a budgeted fund, is created mid-year, and will require expenditure authority mid-year, the creation of the fund or agency and the establishment of estimated revenues and appropriations pursuant to Government Code Section 29130 must be submitted to the Board on an AIT, regardless of whether or not the fund or agency would otherwise require Board action to be established. The AIT must be submitted to the Auditor-Controller and the CEO for review, and concurrence must be obtained from the CEO. The mid-year establishment of appropriations and estimated revenue for the new fund or agency requires a four-fifths (4/5) vote of the Board, pursuant to Government Code Section 29130.

2.3 Request for Establishment: Required Information

The AIT or request letter must contain the following information:

The legal authority for establishing the new fund or agency;

If no legal authority, the policy/administrative reason or other authority for establishing the fund or agency;

Whether or not the fund or agency is a budgeted fund or agency, and if available, the Activity Code to be used for this budget;

A description of the revenue sources for the fund or agency, and the uses of the fund or agency;

Any expiration date for the fund or agency;

Whether the fund will earn its own interest, or if it does not, which other fund should receive the interest earned on balances in the new fund (this does not apply to new agencies);

If the fund will not earn its own interest, the reason for the redirection of interest: legal or contractual provision, or management decision;

The specific account codings and dollar amounts of appropriations and estimated revenues to be established for the fund or agency, if the fund or agency is being established pursuant to 2.2.3 above; and

The responsible controlling department for the new fund or new agency.

For funds with separate cash accounts, the planned disposition of any residual account balances when the fund is closed. Include legal or other authority for the distribution.

2.4 Authorized Signature List

Once the new fund or agency is approved by the Board, or by the CEO and the Auditor-Controller, authorized signature lists for the new fund or agency must be submitted to those departments which require them (Auditor-Controller, CEO/Human Resources, CEO/Purchasing, etc.).

2.5 Department/Agency Head Responsibility

Department/Agency heads are responsible for all funds/agencies under their control and must ensure that staff are monitoring all activity in their funds/agencies, and that all subsidiary ledger accounts for their funds/agencies are reconciled to the County's General Ledger balances.

2.6 Department/Agency Head Responsibility

2.6.1 Procedure

Funds/Agencies that are no longer required and which were originally created by action of the Board must be deleted by the Board on an AIT explaining the reasons for the deletion of the funds/agencies. Funds/Agencies which were originally created by request to the Auditor-Controller and CEO must be deleted by a letter to the Auditor-Controller, signed by the department/agency head, with a copy to the appropriate CEO analyst, explaining the reasons for deletion of the fund/agency. The Auditor-Controller will obtain CEO concurrence on all fund/agency deletions.

2.6.2 Request for Deletion: Required Information

The AIT to the Board or the letter to the Auditor-Controller must include the following information:

The name and number of the fund/agency being deleted.

The specific reasons for the deletion of the fund/agency.

The successor fund/agency which will receive any residual account balances and interest earnings from the deleted fund/agency.

If transfer of residual balances between a deleted fund/agency and a successor fund/agency will require budgetary or other actions which require Board approval, then the deletion of the fund/agency and the related budgetary actions must be included in the AIT to the Board, regardless of how the fund/agency was originally established.

If specific legal or contractual authority for the disposition of residual account balances is not available, the department or agency requesting closure should obtain County Counsel approval of the planned transfer.

2.7 Non-Board Governed Funds/Agencies

2.7.1 Definition

Non-Board governed funds/agencies are funds/agencies established in the County Treasury by the Treasurer-Tax Collector over which the County Board has no authority, such as school district funds/agencies and funds/agencies requested by non-Board governed independent special districts and cities which use the County Treasury.

2.7.2 Requirements for Non-Board Governed Funds/Agencies

Board approval is required for new funds and agencies for non-Board governed agencies who are voluntary participants in the County Treasury, such as cities and independent locally governed special districts not otherwise required to maintain their funds in the County Treasury.

Other non-Board governed funds/agencies, such as school districts and independent special districts which are legally required to use the County Treasury, are established or deleted by letter from the Treasurer-Tax Collector, school districts or independent special district to the Auditor-Controller. The same information required in 2.3 above is required for these types of funds/agencies.

In addition to the information required in 2.3, all non-Board governed agencies must provide the statute or other legal reference which allows or requires them to deposit funds in the County Treasury, and must provide the full and complete legal name of their entity.

A copy of the Auditor-Controller's letter establishing these types of funds/agencies is sent to the CEO. CEO concurrence for these types of funds/agencies will only be required for pooled funds/agencies or other types of Treasurer funds/agencies which may impact County-governed funds/agencies, such as commingled interest pool funds/agencies.

2.8 Report to Board and Treasury Committees

The Auditor-Controller will submit a semi-annual report on an AIT (consent calendar) to the Board, with copies to the Treasury Oversight Committee, the Treasury Advisory Committee, and the CEO, listing all new funds and new agencies established and all funds/agencies deleted during the prior six months, including all non-Board funds established/deleted under 2.7 above. A brief summary of the purpose and authority for each new fund and agency will be included in the report, with a reference to the fact that copies of the requests, Board actions, and other supporting detail for the creation/deletion of the funds and agencies are available at the Auditor-Controller Department.

2.9 Annual Update of County Chart of Accounts

In January each year, the Auditor-Controller will send a comprehensive update to all holders of the County's Chart of Accounts (Orange Book) which will include all funds and agencies added and deleted during the prior twelve months.

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Fiduciary Funds

SUBJECT:

FIDUCIARY FUNDS
NUMBER:

F.4.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 3/04

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

1.1 Purpose

1.2 Authority

1.3 Definitions

2. PROCEDURE

2.1 Uses of Fiduciary Funds

2.2 Establishing a Fiduciary Fund

2.3 Fiduciary Fund Checks

2.4 Other Transactions Affecting Fiduciary Funds

2.5 Fiduciary Fund Accounts

2.6 Department/Agency Fiduciary Fund Responsibilities

2.7 Disposition of Fiduciary Funds

2.8 Restrictions on Fiduciary Funds

EXHIBITS

Exhibit I - Request for Trust Fund Check Form

Exhibit II - Request for Check Form

1. POLICY

Certain monies and other assets held under the control of a County department or agency on behalf of, or for distribution to, third parties such as individuals, private organizations, corporations and other businesses, and other non-County governmental agencies, are to be maintained in fiduciary funds. Fiduciary funds are to be used and accounted for in accordance with applicable legal requirements; Federal, State, and other governmental regulations; trust agreements, trust indentures, or other fiduciary agreements; and generally accepted accounting principles.

1.1 Purpose

To establish procedures for the creation, use, monitoring, reconciliation, and disposition of fiduciary funds.

1.2 Authority

1.2.1 Government Code Section 26881
Government Code Section 26881 provides that the County Auditor-Controller, upon order of the Board of Supervisors ("Board"), shall prescribe and shall exercise a general supervision over the accounting forms and the method of keeping the accounts of all offices, departments and institutions under the control of the Board.

1.2.2 Board of Supervisors Resolution No. 82-162
Pursuant to Government Code Section 26881, Board Resolution No. 82-162 dated February 2, 1982 authorizes and directs the Auditor-Controller to prescribe and exercise general supervision over accounting forms and methods of keeping the accounts of all County departments and agencies and districts governed by the Board.

1.2.3 Government Code Section 25252
Government Code Section 25252 authorizes the Board to establish or abolish funds as necessary for the proper transaction of County business, and provides that the Board may by resolution authorize the Auditor-Controller to perform these functions.

1.2.4 Board Resolution No. 71-1006
Board Resolution No. 71-1006 dated September 14, 1971 authorizes the Auditor-Controller to establish and abolish funds as provided in Government Code Section 25252.

1.2.5 Government Code Section 29802
Government Code Section 29802 allows the Board of Supervisors to authorize the Auditor-Controller to issue replacement checks for stale-dated checks.

1.2.6 Board Resolution No. 00-148
Board Resolution No. 00-148 dated May 2, 2000 authorizes the Auditor-Controller, pursuant to Government Code Section 29802, to issue replacement checks for stale-dated checks.

1.2.7 GASB 34
Governmental Accounting Standards Board Statement No. 34- Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments ("GASB 34"), issued June 1999, and effective July 1, 2001 for Orange County and other large governmental agencies, established new accounting and financial reporting requirements for state and local governments. One of the major changes involved the classification of, definition of, and accounting for various types of fiduciary funds.

1.3 Definitions

1.3.1 Fiduciary Funds
Fiduciary funds are separate funds that are used to record assets held by departments and agencies in a trustee capacity or as an agent for individuals, private organizations, or other governmental agencies, and therefore the assets of fiduciary funds cannot be used to support the County's own programs. Fiduciary funds are classified into four different types:

Pension trust funds

Investment trust funds

Private-purpose trust funds

Agency funds

1.3.2 Pension Trust Funds
Pension (and other employee benefit) trust funds are used to report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contribution plans, other postemployment benefit plans, or other employee benefit plans. An example of a pension trust fund is Fund 167- Extra-Help Retirement Plan, administered by the Treasurer-Tax Collector.

1.3.3 Investment Trust Funds
Investment trust funds are used to report the external portion of investment pools reported by a sponsoring government. The portions of the Treasurer-Tax Collector's commingled investment pool applicable to non-County agencies such as the schools and independent special districts are reported as investment trust funds.

1.3.4 Private-Purpose Trust Funds
Private-Purpose trust funds are used to report all other trust arrangements under which principal and income benefit individuals, private organizations, or other governments. Examples of private-purpose trust funds are the Public Administrator and Public Guardian Trust Funds Nos. 164 and 165, and the Child Support Trust Fund No. 154.

1.3.5 Agency Funds
Agency funds are used to report resources held by the County in a purely custodial capacity. Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.
Examples of agency funds are the Unapportioned Property Tax funds, which are used to accumulate collections of property taxes and from which the collections are apportioned to all property tax receiving agencies in the County - cities, schools, special districts, redevelopment agencies, and County funds.
Other examples of agency funds are the various funds held by departments and agencies in the Fund 300 series of fund/agencies, which are temporarily held before disbursement to non-County third parties such as individuals, private non-governmental organizations such as businesses, and non-County governmental agencies.

1.3.6 Public Purpose "Trust" Funds
Public purpose "trust" funds are not true fiduciary or trust funds. These funds are established to hold grant monies or other reimbursements for expenditures on County programs, only in those cases where Federal requirements, State laws or regulations, court orders, or some other legal or regulatory requirements require that the monies be held in a separate fund prior to transfer to the operating fund where expenditures are to be reimbursed. These types of funds are accounted for as agency funds.
If the monies are not required to be held in a separate fund, they should be accounted for directly in the fund where they will be spent, recorded either directly to revenue if the qualifying expenditures have already been spent, or in a liability account or deferred revenue account until qualifying expenditures are spent.
Restrictions on establishing public purpose "trust" funds are described in Paragraph 2.1.7 of this Procedure.

1.3.7 Authorized Signer
A department/agency director may designate one or more individuals as authorized signers for his or her fiduciary fund transactions. The authorized signer may request issuance, cancellation, or reissuance of fiduciary fund checks.
Checks for fiduciary fund/agencies in the Fund 300 series are issued on County "trust" checks. Checks for fiduciary funds in all other numeric series are issued on County accounts payable checks. See County of Orange Accounting Manual Procedure M-1, Authorized Signature List for procedures on preparing and revising authorized signature lists.

2. PROCEDURE

2.1 Uses of Fiduciary Funds

2.1.1 Private-Purpose Trust Funds
A private-purpose trust fund is used to receive, hold and disburse to third parties certain monies deposited with a department/agency under the terms of a trust agreement or trust indenture, pursuant to legal requirements, or pursuant to the department's/agency's fiduciary responsibilities. The use of the private-purpose trust fund must be authorized by the Board in the form of an agreement or contract, by statutory or other legal or regulatory requirements, by court order, or by specific trustee/custodian/agent/fiduciary responsibilities required of the department/agency director. The department/agency director may only use the monies of the fund for payments which are legally payable out of the deposits of the trust fund to non-County third parties such as individuals, private organizations, businesses, and other governmental agencies which are not governed by the Board. County department and agency directors are personally liable for misuse of fiduciary private-purpose trust funds.

2.1.2 Examples of Private-Purpose Trust Funds
Examples of private-purpose trust funds currently used by County departments and agencies are:

Child Support Collections Trust Fund No. 154

Public Administrator Trust Fund No. 164

Public Guardian Trust Fund No. 165

Life Insurance Revolving Trust Fund/Agency 300/304

Dependent Care Assistance Trust Fund/Agency 300/307

Use of private-purpose trust funds is strictly limited to those situations where there is an actual or implied fiduciary trust agreement or indenture required by specific agreement, Board resolution, legal requirement, or the statutory and fiduciary responsibilities of the particular department or agency.

2.1.3 Performance Guarantees and Negotiable Instruments
A private-purpose trust fund should be used to account for performance guarantees and negotiable instruments in accordance with County of Orange Accounting Manual Procedure M-3, Performance Guarantees and Negotiable Instruments.

2.1.4 Agency Funds
Agency funds are used to report resources held by the County in a purely custodial capacity. Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. Agency funds are differentiated from private-purpose trust funds by the fact that there is no express or implied trust agreement or trust indenture, and the County is simply holding the funds for eventual allocation or disbursement to other non-County parties such as individuals, private organizations, or non-County governmental agencies, pursuant to statutory or other legal or regulatory requirements.

2.1.5 Examples of Agency Funds
Examples of agency funds currently used by County departments and agencies are:

Various agencies in the Fund 300 series of agency numbers, used to temporarily hold funds for distribution to third parties

Property tax and interest unapportioned funds in the 600 series of fund numbers, used to deposit and allocate property taxes and interest earnings to other governmental agencies, such as cities, school districts, and independent special districts

Housing and Community Development Deferred Loan Program Fund 177 and Amortized Loan Program Fund 180, used to make low-cost housing loans which are repaid when houses are sold

Public Safety Sales Tax Fund 212, used to deposit and disburse to cities and the County the proceeds of the special State half-cent sales tax for public safety purposes

2.1.6 Unidentified Deposits
An agency fund should be used to temporarily account for unidentified deposits from third parties until they are either identified and can be transferred to the identified third party to which they belong, or until they are escheated in accordance with County of Orange Accounting Manual Procedure R-1, Escheatment of Unclaimed Money.

2.1.7 Public Purpose "Trust" Funds
Public purpose "trust" funds are not true fiduciary or trust funds. These funds are established to hold grant monies or other reimbursements for expenditures on County programs, only in those cases where Federal requirements, State laws or regulations, court orders, or some other legal or regulatory requirements require that the monies be held in a separate fund prior to transfer to the operating fund where expenditures are to be reimbursed. These types of funds are accounted for as agency funds for operational purposes but are reclassified to the operating funds they ultimately benefit for financial statement reporting purposes.
If the monies are not required to be held in a separate fund, they should be accounted for directly in the fund where they will be spent, recorded either directly to revenue if the qualifying expenditures have already been spent, or in a liability account or deferred revenue account until qualifying expenditures are spent.

Separate agency funds will only be established for these types of public purpose "trust" monies when a separate fund is required by one of the following: Federal law or regulation

State Constitution, statute, or regulation

Court Order

Contract or agreement with another party

County ordinance or resolution

Board policy

Valid administrative requirement, for example, funds are required to earn interest and cannot be commingled in the related operating fund

2.1.8 Pension Trust and Investment Trust Funds
Pension trust funds and investment trust funds are established and used only by the Treasurer-Tax Collector, and should not be utilized by any other department or agency.

2.2 Establishing a Fiduciary Fund

2.2.1 New Fiduciary Funds
New fiduciary funds are established by the Auditor-Controller based upon Board resolution or minute order, or upon a written request signed by the requesting department/agency director. Refer to County of Orange Accounting Manual Procedure F-3, Requesting Establishment/Deletion of Funds/Agencies. All of the required information about the new fiduciary fund specified in Section 2.3 of Procedure F-3 must be included in the Board resolution or minute order or written department/agency director request, including the legal or other authority for the fund and the reason and purpose for establishing the fund.
In addition, an explanation must be provided of the specific legal, regulatory, or administrative authorities or reasons for establishing and accounting for the new fund as a separate fiduciary fund rather than as a regular budgeted governmental or proprietary fund or as part of another pre-existing budgeted fund. New fiduciary funds will only be established if they qualify as agency or private-purpose trust funds as defined and described above.
The only exceptions to this policy are noted in Section 2.2.2 below.

2.2.2 Separate Public Purpose Fund Required
A new fiduciary agency fund will only be established for public purpose "trust" revenues, such as Federal or State grants or other reimbursements from other agencies for County program expenditures, when a separate fund is specifically required by one of the following:

Federal law or regulation

State Constitution, statute, or regulation

Court order

Contract or agreement with another party

County ordinance or resolution

Board policy

Valid administrative requirement, for example, funds are required to earn interest and cannot be commingled in the related operating fund

2.2.3 Separate Public Purpose Fund Not Required
If a separate fund is not required for public purpose monies, such as grant funds from the Federal or State governments or other reimbursements from other agencies for County program expenditures, for any of the reasons indicated in Section 2.2.2 above, then the monies are deposited to one of the following accounts in the operating fund and accounted for as indicated:

Revenue Account:Deposit the funds directly into an appropriate revenue account of the fund in which the expenditures were made, provided that the qualifying expenditures have already been spent or will be spent or accrued before the end of the fiscal year in which the revenue is received.

Liability Account: Deposit the funds directly into an appropriate liability account (e.g. Account 9340-Due to Other Governmental Agencies) of the fund in which the reimbursable expenditures will be made, if the qualifying expenditures have not yet been spent. Debit the liability account and credit an appropriate revenue account when qualifying expenditures are spent or accrued on the program. If qualifying expenditures will not be spent or accrued within 60 days after June 30, a deferred revenue account should be used as explained in the next bullet.

Deferred Revenue Account: Deposit the funds directly into an appropriate deferred revenue account (e.g., Account 9540-Deferred Revenue-Unearned) of the fund in which the reimbursable expenditures will be made, if the qualifying expenditures are not expected to be booked until 60 days following the end of the fiscal year, June 30, in which the revenues were received. Record a debit to the deferred revenue account and a credit to an appropriate revenue account when the qualifying expenditures are actually spent on the program in the following fiscal year.

2.3 Fiduciary Fund Checks

2.3.1 Fiduciary Fund Trust Checks
Fiduciary fund checks for disbursements made from the Fund 300 series of agency numbers (agency numbers 301-399) are issued on "trust fund checks".
These checks are prepared based upon authorized "Request for Trust Fund Check" forms (see Exhibit I) signed by an authorized signer. Authorized signers of "Request for Trust Fund Check" forms must be on the "Authorized Signature List" filed with the Auditor-Controller. Please refer to Section 1.3.7 of this Procedure, and to County of Orange Accounting Manual Procedure M-1, Authorized Signature List.

2.3.2 Fiduciary Fund Accounts Payable Checks
Payments made from fiduciary funds that are not in the Fund 300 series are processed on regular County accounts payable checks. Backup documentation for these payments should be submitted to the Auditor-Controller Claims and Disbursing Section based on the standard requirements for the particular type of payment being made. If payments are made using the "Request for Check" form (see Exhibit II), an authorized signer must sign the form, and the authorized signer must be on the department's/agency's authorized signature list for the fund from which the payment is made. Please refer to Section 1.3.7 of this Procedure, and to County of Orange Accounting Manual Procedure M-1, Authorized Signature List.

2.3.3 Check Cancellations
Once issued, fiduciary fund checks may only be cancelled by the Auditor-Controller upon receipt of a written request to cancel the check. The request must be signed by an authorized signer for "Request for Trust Fund Check" forms, in the case of a check issued from the Fund 300 series, or by an authorized signer for payments from the applicable fund in the case of an accounts payable check. The request for check cancellation should be sent to the Check Writing Unit of the Auditor-Controller's Claims and Disbursing Section.

2.3.4 Stale-Dated Checks
County trust and accounts payable checks become stale-dated and void six months from their issue dates. Stale-dated checks will not be paid by the County's bank. The dollar amount of any stale-dated check issued from the Fund 300 series of agency numbers is transferred by the Auditor-Controller to the County General Fund to General Fund level revenue (Fund/Agency 100/100). The dollar amount of stale-dated accounts payable checks is transferred back to the fund from which the check was issued.

2.3.5 Reissuance of Stale-Dated Checks
A stale-dated check may be reissued up to two years after the check's void date, based upon a request from the department or agency. The request must be in the form of a memo, signed by an authorized signer for the fund from which the check was issued, and sent to the Auditor-Controller's Check Writing Unit. The dollar amount of a reissued check will be transferred back from the County General Fund to the originating fiduciary fund by the Auditor-Controller, if the check was issued from the Fund 300 series of agency numbers.

2.4 Other Transactions Affecting Fiduciary Funds

2.4.1 Journal Vouchers
Journal Voucher forms are utilized to record transactions such as transfers of funds into or out of fiduciary funds from or to other funds in the County Treasury. Refer to County of Orange Accounting Manual Procedure J-3, Journal Voucher Preparation and Review.

2.4.2 Deposit Orders
Deposits of monies to fiduciary funds are made on Deposit Order forms, as discussed in County of Orange Accounting Manual Procedure C-4, Deposits.

2.5 Fiduciary Fund Accounts

2.5.1 Asset and Liability/Equity Accounts
Fiduciary fund entries are usually only made to asset and liability/equity accounts. Fiduciary funds are normally not budgeted funds and do not utilize revenue and expenditure accounts. The standard account balances in fiduciary funds are the Cash Account 8010 and the Balance-Trust Funds Account 9200. Other balance sheet accounts may be used as appropriate, depending upon the nature of the fiduciary fund. For example, deposits from other parties are coded to the 9100 through 9160 series of accounts, depending on the type of deposit. Monies held for other governmental agencies are coded to the 9340 Account-Due to Other Governmental Agencies. Refer to the County of Orange Chart of Accounts for appropriate codings.

2.5.2 Reporting Categories
Reporting category codes should be used to provide for more detailed identification of fiduciary fund amounts. For example, deposits from other parties should be identified by unique reporting categories to identify each depositing party separately.

2.6 Department/Agency Fiduciary Fund Responsibilities

2.6.1 Accountability for Fiduciary Funds
Departments and agencies are responsible for the fiduciary funds under their control, and are accountable for all transactions of and all monies held in their fiduciary funds. County department and agency directors are personally liable for misuse of fiduciary funds under their control.

2.6.2 Maintenance of Authorized Signature List
Departments and agencies are responsible for maintaining an updated "Authorized Signature List" on file with the Auditor-Controller, with the signatures of those employees currently authorized to sign payment requests, journal vouchers, and other transactions for fiduciary funds. Refer to County of Orange Accounting Manual Procedure M-1, Authorized Signature List.

2.6.3 Control of "Request for Trust Fund Check" Forms
Departments and agencies are responsible for maintaining all "Request for Trust Fund Check" forms in a secured location to prevent unauthorized access. Only a minimum number of individuals should have direct access to these forms.
A control log of all "Request for Trust Fund Check" forms should be maintained. The log and blank forms must be safeguarded by an individual having no other trust fund responsibilities. The log must indicate:

The number, sequence, and the date delivered of the forms

The forms issued, to which authorized individual they were issued, and the date issued

Periodic verification of forms issued and remaining

The issuance of forms in numerical sequence

2.6.4 Payment Documentation
Departments and agencies must maintain adequate documentation on file supporting each payment request from a fiduciary fund. Supporting documentation should be cancelled or marked in some way at the time the payment request is made to prevent it from being reused.

2.6.5 Reconciliation of Fiduciary Funds
Departments and agencies are responsible for reconciling, at least monthly, each fiduciary fund balance per the department's or agency's subsidiary ledger records or other detailed records to the Auditor-Controller's General Ledger balance shown for the fiduciary fund. This reconciliation should be performed by a person having no other fiduciary fund responsibilities. The reconciliations must identify the differences between the department's or agency's detailed or subsidiary records and the General Ledger balance of the fund, the reasons for those differences, and the planned disposition of any reconciling items.
Reconciliations should be documented and retained for five years.

2.6.6 Unresolved Reconciling Items
Reconciling items that come up during the reconciliation process that cannot be specifically identified or resolved should be disposed of as follows, depending on the nature of the items:

Monies Due to Others-Any monies in fiduciary funds that can be identified to third party depositors or creditors that are due to them should be paid out if the conditions for refund have been met.

Unclaimed Deposits-Any unclaimed deposits or other unclaimed monies from third parties held in fiduciary funds should be handled in accordance with County of Orange Accounting Manual Procedure R-1, Escheatment of Unclaimed Money.

Monies Held for Other Funds-Any monies in a fiduciary fund that are being held for transfer to other funds -- for example, Federal or State grant monies for reimbursement of County expenditures on Federal and State programs -- should be transferred as revenue to the appropriate funds where the expenditures were incurred, provided, of course, that qualifying expenditures actually have been made.
This treatment also applies to donations from third parties for expenditure on County programs where the qualifying expenditures have been made.

Monies Refundable to Other Agencies-Any monies held in a fiduciary fund that are from Federal, State, or other governmental agencies for reimbursement of County expenditures that are in excess of allowable expenditures, or are for programs or projects that will not be implemented or have closed, should either be refunded to the applicable agency or transferred to an appropriate County fund in accordance with applicable agreements, guidelines, or regulations.

Cash Overages-If a reconciling item is due to a cash overage, it should be processed pursuant to County of Orange Accounting Manual Procedure C-6, Overage Fund.

Unidentified Items-Reconciling items which cannot be identified at all and do not fit into any of the above categories should be handled in accordance with County of Orange Accounting Manual Procedure R-1, Escheatment of Unclaimed Money.

2.6.7 Unreconciled Fiduciary Fund Balances
If the subsidiary ledger or detailed records maintained by the department or agency for a fiduciary fund totals to a balance that is greater than the General Ledger balance (after allowing for all other identified reconciling items), the shortage in the General Ledger balance should be handled as follows:

Cash Shortages-Follow County of Orange Accounting Manual Procedure C-2, Cash Difference Fund, if the shortage is a cash shortage resulting from mishandling of cash receipts and disbursements, as defined in Procedure C-2.

Cash Losses-Follow County of Orange Accounting Manual Procedure C-3, Cash Losses, if the shortage is due to a cash loss as defined in Procedure C-3.

2.6.8 Document Retention
Departments and agencies must retain copies of all "Request for Trust Fund Check" forms, filed in numerical sequence with supporting documents, and also retain all copies of any voided forms in the numerical sequence file, for at least five years. Copies of all backup documentation for accounts payable checks issued from fiduciary funds must also be retained for at least five years. Copies of all other transaction documentation, such as journal vouchers and deposit orders, and of the monthly fiduciary fund reconciliations, must also be retained for at least five years.

2.7 Disposition of Fiduciary Funds

2.7.1 Unclaimed Funds
Any unclaimed monies in a fiduciary fund must be handled in accordance with County of Orange Accounting Manual Procedure R-1, Escheatment of Unclaimed Money.

2.7.2 Closing Fiduciary Funds
A fiduciary fund which is no longer required by a department or agency should be closed in accordance with County of Orange Accounting Manual Procedure F-3, Requesting Establishment/Deletion of Funds/Agencies.

2.7.3 Department/Agency Director Change
The fiduciary funds of a department or agency director leaving office must be handled in accordance with County of Orange Accounting Manual Procedure M-4, Requirements of Elected or Appointed Officials Assuming or Leaving Office.

2.8 Restrictions on Fiduciary Funds

2.8.1 Restricted Funds
Fiduciary funds are not funds available to the responsible department or agency, and must not be used to directly finance the operations of a department or agency.
The only exceptions to this restriction are as indicated in Paragraph 2.7.1 of this Procedure.
Fiduciary fund monies must not be paid directly from the fiduciary fund for salaries and benefits, purchases of supplies or services, equipment purchases, capital project expenditures, or for any other County operating or capital expenditures, because such payments bypass appropriations and budgetary control, and are therefore unauthorized. The department or agency director is personally liable for such payments made directly from fiduciary funds. Specific Board authorization must be obtained if such payments must be made directly from a fiduciary fund.

2.8.2 Unbudgeted Funds
Fiduciary funds are not usually budgeted funds, and do not normally have appropriations, estimated revenues, expenses, or revenues.

2.8.3 Cash/Balance Control
Departments and agencies must never pay out or transfer out of a fiduciary fund amounts in excess of the cash or of the fund/agency balance of a fiduciary fund or fiduciary fund/agency.

2.8.4 Interest Earnings
Fiduciary funds which are required by law, regulation, or Board direction to earn their own interest are established as separate interest earning funds, and interest revenue and the related investment expenses are recorded directly to the fiduciary fund. Fiduciary agency funds that are not required to earn their own interest are established as agencies within Fund 300, and the interest earnings and related investment expenses applicable to all agencies in Fund 300 are credited to the County General Fund.

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Accounting for Lease-Purchases ( Capital Leases )

SUBJECT:

ACCOUNTING FOR LEASE PURCHASES (CAPITAL LEASES)
NUMBER:

FA.1.

DEPARTMENTS & DISTRICTS AFFECTED:

DEPARTMENTS/AGENCIES/DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 7-1-80
REVISED: 7/84, 04/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Lease purchases of fixed assets are to be accounted for in a manner similar to purchases of fixed assets with long-term credit terms.

1.1 Purpose

To account for lease purchases in accordance with generally accepted accounting principles.

1.2 Authority

Authority
Subject

Board of Supervisors' Resolution No. 82-162
Authorizes the Auditor-Controller to prescribe accounting policies.

Accounting Standards and Procedures for Counties, State of California, Ch. 11.17 to 11.20.

Defines capital and operating leases.

Financial Accounting Standards Board Statement No. 13, as amended and interpreted.
Establishes standards of financial accounting and reporting for leases.

1.3 Definitions

1.3.1 Lease Purchases (Capital Leases)

Leases of fixed assets which transfer substantially all benefits and risks of ownership to the lessee. A lease meeting any one of the following criteria is considered to be a lease purchase:

The lease transfers ownership of the property to the County by the end of the lease term.

The lease contains a bargain purchase option, exercisable at lessee's option, to purchase the lease property for a price which is sufficiently lower than the expected fair value of the property at the date the option becomes exercisable so that exercise of the option appears, at the inception of the lease, to be reasonably assured.

The lease term is equal to at least 75% of the remaining estimated economic useful life of the leased property. (This is not applicable if the lease begins in the last 25% of the asset's total useful life.)

The present value of the required lease payments equals or exceeds 90% of the fair value of the lease property. (This is not applicable if the lease begins in the last 25% of the asset's total useful life.)

1.3.2 Operating Leases

All leases other than lease purchases. Lease payments are charged to the appropriate lease expenditure/expense account, Object Code 2100 (Rents and Leases - Equipment) for equipment and Object Code 2200 (Rents and Leases - Buildings and Improvements) for real property.

2. PROCEDURE

2.1 Budgeting

Appropriations for lease purchases are to be budgeted using the appropriate debt service (debt principal and interest) expenditure objects (see Exhibit II). Principal payments are to be budgeted and recorded in Object Code 3251 (Lease Purchase Principal Payment) and interest payments in Object Code 3351 (Lease Purchase Interest Payment).

2.2 Identification of Lease Purchases

All lease purchases must be identified as such by the acquiring department/agency or by CEO/Purchasing. At the inception of any lease, the department or agency must complete the Lease Certification Form (Exhibit I) to determine whether the lease is a lease purchase or operating lease. The head of the department/agency signs the completed form, which is then forwarded to the Auditor-Controller General Ledger Unit for approval. The department/agency should maintain copies of the documentation that supports the lease classification.

Purchase Orders must have a completed principal/interest payment schedule (see Exhibit II) attached to the Auditor-Controller's copy. When there are multiple items being acquired on a Purchase Order, the principal/interest totals for each fixed asset must be provided. The Deputy Purchasing Agent should obtain this payment schedule from the vendor.

Note: Some leases fall under the provisions of the County's Public Financing Policies and Procedures and may require approval by the Public Finance Advisory Committee prior to submission to the Board. The CEO Public Finance Manager should be consulted for guidance prior to initiating any lease.

2.3 Accounting Treatment

2.3.1 Capitalization

Upon making the first payment, the Auditor-Controller capitalizes the asset by recording it in the Fixed Asset Accounting System. The recorded cost of the asset is the total principal to be paid over the life of the lease.

2.3.2 Depreciation

The asset is depreciated in accordance with the normal depreciation policy of the lessee fund over the asset's life.

2.3.3 Principal Balance

Each year, the General Long-Term Debt Account Group is adjusted by the Auditor-Controller Department to reflect the remaining principal balance due on lease purchases by non-proprietary funds.

2.3.4 Financial Statement Presentation

For financial statement presentation, debt principal payments by proprietary funds (enterprise and internal service funds) are reclassified as reductions of debt principal instead of expense.

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Fixed Asset Expenditure Coding

SUBJECT:

FIXED ASSET EXPENDITURE CODING
NUMBER:

FA.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 1/1/85
REVISED: 7/1/89, 7/6/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions

2. PROCEDURES

2.1 Land
2.2 Buildings and Improvements
2.3 Equipment
2.4 Treatment of Costs Subsequent to Acquisition
2.5 Choosing the Proper Expenditure Code

SUBJECT:

FIXED ASSET EXPENDITURE CODING
NUMBER:

FA.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 1/1/85
REVISED: 7/1/89, 7/6/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Each department/agency is responsible for using the proper coding for budgeting and payment of expenditures for land, buildings and improvements, and equipment based on whether the expenditures are maintenance, betterments, additions, or alterations.

1.1 Purpose

To establish procedures and guidelines for departments/agencies to use in selecting the appropriate expenditure coding for land, buildings and improvements, and equipment based on the definitions of maintenance, betterments, additions, and alterations transactions.

1.2 Authority

Authority
Subject

Board of Supervisors Resolution No. 82-162 dated February 2, 1982
Authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors.

Board of Supervisors Resolution No. 93-1390 December 14, 1993
Authorizes the Auditor-Controller to revise the County's procedures for fixed assets.

Accounting Standards and Procedures for Counties, published by the California State Controller's Office.
Provides State guidelines and procedures for fixed asset accounting.

1.3 Definitions

1.3.1 Fixed Assets

Tangible assets of significant value having a utility which extends beyond the current year that are broadly classified as land, buildings and improvements, and equipment.

1.3.2 Land

The investment in real estate other than buildings and improvements.

1.3.3 Buildings and Improvements

Physical property of a permanent nature, examples of which are buildings, structures, monuments, fences, retaining walls, pavement, sidewalks, bridges, docks and waterfront improvements, tunnels, viaducts, canals, and anything else which adds value to property. This would include the cost of improvements made by the County to leased property. Fixtures are permanent attachments to structures which are not intended to be removed, and which function as part of the structure, such as boilers, lighting fixtures, and plumbing, heating and ventilating systems.

1.3.4 Equipment

Moveable property of a relatively permanent nature with a significant value. "Significant value" is defined as a cost of $5,000 or more. "Relatively permanent" is defined as a useful life of one year or longer.

1.3.5 Maintenance

Expenditures which neither materially add to the value of property nor appreciably prolong its life, but merely keep it in an ordinary, efficient operating condition. Maintenance costs are not capitalized.

1.3.6 Capitalized Expenditures (Betterments)

Expenditures which materially add to the value of property or appreciably extend its life. The cost of capitalized expenditures should be added to the book value of the asset where the original cost of a component being improved can be specifically identified. If a component is being replaced, the cost of the old component should be written off and the new cost capitalized. Capitalized expenditures are on occasion referred to as betterments.

The decision as to whether an expenditure should be capitalized shall be made by an evaluation of engineering, physical, or other relevant factors apart from cost.

With respect to buildings and improvements, a "significant" betterment is defined as one which results in an improvement of at least $150,000.

1.3.7 Additions

New and separate units or extensions of existing units are considered fixed assets. As with betterments, the test of significance is applied.

1.3.8 Alterations

Changes in the physical structure or arrangement of fixed assets, the cost of which does not qualify as an increase in fixed assets under the foregoing definitions of betterments and additions. Alterations are not capitalized.

2. PROCEDURES

2.1 Land

2.1.1 Coding

Fixed asset land is budgeted in and charged to the "Land" account, Object Code 4100. Agencies which use organization reporting must use unique organization codes, ranging from L001 - L999, in conjunction with Object Code 4100 to identify the specific project.

2.1.2 Costs to be Included

The cost of land includes all expenditures in connection with its acquisition, such as:

Purchase price

Appraisal and negotiation fees

Surveying fees

Cost of consents

Condemnation costs

Clearing land for use

Demolishing or removing structures

Filing costs

Relocation costs

2.1.3 Donations

If acquired by donation, the fair market value at the date received is considered the cost of the land. See County of Orange Accounting Manual Procedure(CAP) No. R.2., "Monetary and Property Gifts: Acceptance, Reporting and Disbursement."

2.1.4 Cost Reductions

Receipts from the sale of salvage should be credited against the land cost if the sale is directly connected with the acquisition of the land and the salvage is sold within a reasonable period of time after acquiring the land.

2.1.5 Rights-of-Way

The purchase of rights-of-way (easements) where title is not acquired by the County should be recorded as "Rights-of-Way", Object Code 3600.

2.1.6 Land and Building Acquired as Single Parcel

The value of the land should be determined separately from the value of the building and the amounts should be coded to Object Codes 4100, "Land" and 4200, "Buildings and Improvements" respectively.

2.2 Buildings and Improvements

2.2.1 Coding

Fixed asset buildings and improvements are budgeted in and charged to Object Code 4200. Agencies which use organization reporting must use unique organization codes, ranging from P001 - P999, in conjunction with Object Code 4200 to identify the specific project.

2.2.2 Costs Included

The cost of buildings and improvements includes all expenditures in connection with their acquisition, such as:

Purchase price or construction cost

Fixtures attached to the structure

Broker and architect fees

Permits and licenses

Condemnation costs

Insurance during construction

Major alterations or improvements of existing structures

Non-removable leasehold improvements

Accident or injury costs

Net interest cost during construction

Payment of damages

2.2.3 Cost Reductions

The cost should be reduced for:v

Sale of salvage from materials charged against the construction

Discounts, allowances and rebates secured

Amounts recovered through surrender of liability and casualty insurance.

2.2.4 Donations

If acquired by donation, the fair market value at the date received is considered the cost of the buildings or improvements. See CAP No. R.2., "Monetary and Property Gifts: Acceptance, Reporting and Disbursement."

2.2.5 Test of Significance

New buildings and improvements of $150,000 and over and significant betterments and additions are capitalized and coded to Object Code 4200. New buildings and improvements under $150,000 and non-significant alterations are not capitalized and are coded to the appropriate services and supplies account such as "Minor Alterations and Improvements," Object Code 1402.

2.2.6 Fixtures

Items of equipment which are permanently installed or attached to a structure, and are not intended to be removed, and which function as part of the structure, are not considered fixed asset equipment. These items are added to the overall cost of the structure, and are coded to Object Code 4200.

2.2.7 Infrastructure Assets

Construction on street, road, site improvements, and flood control projects fall within the definition of "Buildings and Improvements." However, because of the possibility of "pyramiding" costs, and a serious question as to whether the value derived from capitalization justifies the work of maintaining accurate records of capital value, expenditures for these types of construction projects are capitalized as Object Code 4200 during the year, but are deleted by the Auditor-Controller from the fixed asset listing upon receiving the notice of completion. Agencies which use organization reporting must use unique organization codes, ranging from P001 - P999, in conjunction with Object Code 4200 to identify the specific project.

2.3 Equipment

2.3.1 Costs Included

The cost of equipment includes:

Purchase price or construction costs, less discounts

Trade-in allowance

Freight

Sales, Use, Transportation, or other taxes

Installation costs

2.3.2 Coding

Equipment items are budgeted in and charged to the "Equipment" account, Object Code 4000. Equipment replacement expenditures are charged to Object Code 4000 when: (1) the replacement unit fits the "Equipment" definition of Section 1.3.4 of this procedure; and (2) the replacement unit is an identifiable/functional unit by itself (a component rather than an integral part of a larger unit).

2.3.3 Test of Significance

Equipment items must have a cost of $5,000 or more and a useful life of one year or longer to be coded to Object Code 4000. Equipment items which do not qualify as fixed assets are budgeted in and charged to the appropriate Services and Supplies account, such as Object Code 1809, "Minor Office

Equipment to be Controlled." Replacement units which become part of a larger asset which is not functional without the replacement should be charged to Object Code 1300, "Maintenance - Equipment."

2.3.4 Donations

If acquired by donation, the fair market value at the date received is considered the cost of the equipment item. See CAP No. 32, "Monetary and Property Gifts: Acceptance, Reporting and Disbursement."

2.3.5 Cost Test

In some instances the cost test is applied to aggregates of units of similar type or purpose, such as shelving and filing drawers that create a filing system, rather than to the units themselves. Object Code 4000 should be used for equipment components when: (1) the components are to be assembled, and; (2) the combined cost of the assembled components exceeds $5,000, and; (3) the assembled unit would be coded to Object Code 4000 if purchased in an assembled state, or; (4) the components qualify as fixed assets in and of themselves.

In order to improve consistency in coding certain types of expenditures, the following guidelines are established by the State Controller's Office:

2.3.5.1 Modular Furniture

When purchasing modular furniture only those components which individually cost over $5,000 are charged to Object Code 4000. All other components are charged to Object Code 1809. This policy also applies to library shelving units purchased for use by the Orange County Public Library. This policy also applies to combination modular furniture/panels/partitions.

2.3.5.2 Panels/Partitions

When purchasing panels/partitions in a group with a combined total cost of $150,000 or more, the expenditure should be coded to "Buildings and Improvements," Object Code 4200, with an organization code that identifies the structure being improved. Individual panel/partition purchases that cost less than $150,000 should be coded to "Maintenance - Minor Alterations and Improvements," Object Code 1402. Combination modular furniture/panels/partitions should be coded as described in Section 2.3.5.1 - Modular Furniture, above.

2.3.5.3 Software

Related volumes of software with a combined cost of $5,000 or more are charged to Object Code 4000. The cost of software developed in-house is not capitalized. Vendor alterations to software are charged to maintenance if the alterations are made to keep the software in a usable state. For example, if rate structure by a program must be updated periodically, this alteration would be maintenance.

2.3.5.4 Replacement Parts on Heavy Equipment

The high cost of replacement parts for heavy equipment, such as tires, transmissions, engines, blades, etc., would qualify for capitalization under the State Controller's guidelines. However, the nature of these expenditures is such that the damaged parts are replaced, sent out for repair, and then put back into inventory for future use, and therefore are essentially spare parts for ordinary maintenance. These expenditures represent ordinary maintenance for heavy equipment, and because these costs do not provide for extending the useful life of the asset but simply allow the asset to be used for its estimated useful life, these types of expenditures should be coded to Object Code 1300. This treatment pertains to heavy equipment only and does not change the capitalization policy for similar types of expenditures in other areas (e.g., dump truck rehabilitation would still be coded to Object Code 4000).

2.3.6 Fixtures

Items of equipment which are permanently installed or attached to a structure, and are not intended to be removed, and which function as part of the structure, are not considered fixed asset equipment. The cost of these items should be added to the overall cost of the structure.

2.4 Treatment of Costs Subsequent to Acquisition

Expenditures on fixed assets which are incurred after the original acquisition are defined and recorded as follows:

2.4.1 Significant Expenditures - Building

Capitalized expenditures (betterments) and additions of at least $150,000 are budgeted in and charged to the "Buildings and Improvements" account, Object Code 4200. Agencies which use organization reporting must use unique organization codes, ranging from P001 - P999, in conjunction with Object Code 4200 to identify the specific project.

2.4.2 Significant Expenditures - Equipment

Capitalized expenditures and additions of at least $5,000 are budgeted in and charged to the "Equipment" account, Object Code 4000.

2.4.3 Expenditures not Meeting the Test of Significance - Building

Maintenance and alterations less than $150,000 are budgeted in and charged to the appropriate services and supplies account such as:

1400 Maintenance - Buildings, Improvements and grounds

1402 Minor Alterations and Improvements

2.4.4 Expenditures not Meeting the Test of Significance - Equipment

Maintenance and alterations less than $5,000 are budgeted in and charged to the appropriate services and supplies account such as:

1300 Maintenance - Equipment

1809 Minor Office Equipment

2.5 Choosing the Proper Expenditure Code

Expenditure Amount Object Code

Maintenance Any 1300/1400/1402

Land Any 4100 *

Buildings & Improvements

New
$1 - $149,999
$150,000 - Up 1402
4200 *

Betterments
$1 - $149,999
$150,000 - Up 1402
4200 *

Alterations
$1 - $149,999
$1 - $149,999
$150,000 - Up 1402
1403 (PFRD only)
4200 *

Equipment

New
$1 - $4,999 1509/1809/2309/2409

Betterments & Additions
$1 - $149,999
$150,000 - Up 1402
4200 *

Alterations
$1 - $149,999
$1 - $149,999
$150,000 - Up 1402
1403 (PFRD only)
4200 *

* Agencies which use organization reporting must use unique organization codes, ranging from L001 - L999 for Object Code 4100, and P001 - P999 for Object Code 4200, to identify the specific project.

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Fixed Assets - Depreciation ( Auditor-Controller Only )

SUBJECT:

FIXED ASSETS - DEPRECIATION
NUMBER:

FA.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS
GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 7/01/79
REVISED: 7/22/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Depreciation shall be computed for equipment and for structures and improvements using the straight- line method, and limited to the total cost of the item, less its estimated salvage value. Each fixed asset shall be depreciated over its estimated useful life.

Depreciation shall be computed on a "full-month basis," with no depreciation being taken in the month of acquisition. Depreciation shall start on the first day of the month following the month of acquisition. A full month of depreciation shall be taken for the month of disposition, regardless of the specific date of disposition during the month.

The only exception to using the "full-month basis" is for funds where depreciation was calculated prior to July 1, 1979. For these funds, depreciation of fixed assets acquired before July 1, 1979 will continue using the same useful lives and a "full-year basis," but with a full-year's depreciation computed for the year of disposal.

1.1 Purpose

To establish procedures to ensure accurate computation of depreciation on County fixed assets. County fixed assets are depreciated to allocate appropriate costs to reimbursable programs and used in the income determination process for proprietary funds.

1.2 Authority

Authority
Subject

Chapter 15, Section 15.27 of the State Controller's Manual, Accounting Standards and Procedures for Counties

Discusses the application of depreciation and methodology.

National Council on Governmental depreciation Accounting (NCGA), Governmental Accounting and Financial Reporting Principles Statement 1.

Discusses treatment of for financial reporting purposes.

OMB Circular A-87

Defines depreciation and discusses methodology and allowances.

1.3 Definitions

1.3.1 Straight-Line Depreciation Method and Formula

The straight-line method of depreciation spreads the cost of a fixed asset equally over the estimated useful life of the asset. The following formula is used in computing depreciation on the "full-month basis."

d = (c - s - a) x m / [(12 x y) - r]

d = current annual depreciation

c = cost of asset

s = salvage value

a = accumulated depreciation through prior year

m = number of months in current year applicable

y = useful life in years

r = accumulated months depreciated through prior year

1.3.2 Proprietary Funds

Proprietary funds are income determining or commercial type funds used to account for ongoing government organizations or activities that are similar to those of the private sector.

The measurement focus is based upon determination of net income, financial position, and changes in financial position. Proprietary funds include the Airport and Integrated Waste Management Enterprise Funds; and the Telephone, Unemployment Insurance, County Indemnity Health, Workers' Compensation, Property & Casualty Risk, Retiree Medical, Transportation, Reprographics, and Self-Insured Benefits Internal Service Funds. (See Section 2.)

1.3.3 Fixed Assets

Tangible assets of significant value having a utility which extends beyond the current year that are broadly classified as land, buildings and improvements, and equipment.

1.3.4 Equipment

Moveable property of a relatively permanent nature with a significant value. Significant value is defined as a cost of $5,000 or more. "Relatively permanent" is defined as a useful life of one year or longer.

1.3.5 Buildings and Improvements

Physical property of a permanent nature, examples of which are buildings, structures, monuments, fences, retaining walls, pavement, sidewalks, bridges, docks and waterfront improvements, tunnels, viaducts, canals, and anything else which adds value to property. This would include the cost of improvements made by the County to leased property. Fixtures are permanent attachments to structures which are not intended to be removed, and which function as part of the structure, such as boilers, lighting fixtures, and plumbing, heating and ventilating systems.

1.3.6 Capitalized Expenditures (Betterments)

Expenditures which materially add to the value of property or appreciably extend its life. The cost of capitalized expenditures should be added to the book value of the asset where the original cost of a component being improved can be specifically identified. If a component is being replaced, the cost of the old component should be written off and the new cost capitalized. Capitalized expenditures are on occasion referred to as betterments.

The decision as to whether an expenditure should be capitalized shall be made by an evaluation of engineering, physical, or other relevant factors apart from cost.

With respect to buildings and improvements, a "significant" betterment is defined as one which results in an improvement of at least $150,000.

2. ACCOUNTING PROCEDURES

2.1 General Fixed Assets Account Group

The General Fixed Assets Account Group is used to establish accounting control and accountability for the County's general fixed assets. The general fixed assets include all fixed assets except those accounted for in proprietary funds. Depreciation of general fixed assets is calculated for cost allocation purposes only. Accumulated depreciation is not recorded in the General Fixed Assets Account Group.

2.2 Proprietary Funds

Because of the measurement focus of proprietary funds (Section 1.3.2), depreciation expense and accumulated depreciation are recorded in the accounts of such funds.

3. STANDARD USEFUL LIVES

3.1 Equipment Useful Lives

The following list of standard useful lives will be used for all equipment acquired on or after July 1, 1979 and certain equipment purchased prior to July 1, 1979:

Equipment Years

Air conditioners 10

Boats - Large boats (fire boats, patrol boats, etc.) 15

Boats - Small boats 10

Communications equipment (except ISF) 10

Communications equipment (ISF) 10

Computer equipment (large systems with a cost of $100,000 or more) 5

Computer equipment (personal computers, data processing equipment, hardware) 5

Computer software (programs) 5

Cooking equipment 10

Dogs 5

Drafting equipment 10

Furniture - Office furniture 10

Gas engines, pumps (large) 10

Horses 10

Ice machines 10

Lab/medical equipment 10

Mechanical files 5

Microfilm cameras 10

Microfilm equipment 10

Photocopiers 5

Photographic equipment (cameras, projectors, etc.) 10

Printing, bindery, inserting equipment 15

Repair and maintenance equipment 10

Small engines/light motorized equipment 3

Steam generating systems 20

Surveying equipment 10

Trailers 10

Vehicles - Fire engines 15

Vehicles - Heavy duty vehicles 10

Vehicles - Light trucks 5

Vehicles - Paramedic vans 5

Vehicles - Police vehicles 2

Vehicles - Police vehicles (unmarked, under cover) 5

Vehicles - Regular vehicles 5

3.2 Structures and Improvements Useful Lives

3.2.1 Pre-Fiscal Year 1979-80

The following useful lives were assigned to structures and improvements completed prior to Fiscal Year 1979-80 and for which depreciation was calculated:

Structures and Improvements Years

All buildings 30

Reservoirs 50

All other Structures and Improvements 20

3.2.2 Fiscal Year 1979-80 and After

The following useful lives will be assigned to structures and improvements completed in Fiscal Year 1979-80 and after, utilizing component breakdowns and existing items not previously depreciated.

Buildings: Years

Basic Structure 45

Ventilating and heating systems 10

Air conditioning (up to 5 tons) 20

Air conditioning (5 - 15 tons) 15

Air conditioning (20 or more tons) 20

Electrical and lighting systems 20

Elevators/escalators 20

Plumbing pipes and fixtures 20

Sidewalks, parking, and landscaping 20

Fire alrams,/sprinkler systems 20

Improvements other than Buildings: Years

Resevoirs 50

All other (parks, tiedowns, runways, transmission lines, etc.) 20

3.3 Guidelines for Useful Lives

These standard useful lives for equipment, structures, improvements, and structural components are general guidelines based on Internal Revenue Service publications and specific requirements for the County of Orange. The useful lives assigned may be based on actual experience when available, although deviations from the above guidelines should be justified by the department/agency that owns the asset. Such justifications should be submitted in advance in writing to the manager of the General Ledger Unit. The useful lives for components of structures should be determined for each structure based on materiality and availability of cost data.

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Fixed Assets - Equipment

SUBJECT:

FIXED ASSETS - EQUIPMENT
NUMBER:

FA.4.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 01/01/85
REVISED: 01/88, 01/94, 06/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions

2. ACCOUNTING PROCEDURES

2.1 Budget Classification and Account Coding
2.2 Receipt of Equipment
2.3 Issuance of Fixed Asset Number by Auditor-Controller
2.4 Fixed Asset Document (FAD)
2.5 Fixed Asset Identification Tag
2.6 Preassigned Fixed Asset Numbers
2.7 Equipment Listings
2.8 Equipment Purchased for Transfer to Another Agency or Fund
2.9 Sales of Fixed Assets Between Funds
2.10 Surplus, Transfer, Loan, Donation, or Trade-In of Equipment
2.11 Stolen Equipment
2.12 Damage to or Destruction of Equipment
2.13 Missing Equipment
2.14 Assets Dismantled for Parts
2.15 Obsolete Software/Computer Programs
2.16 Physical Inventory of Equipment
2.17 Auditor-Controller Report to Board of Supervisors

3. CONTROL PROCEDURES: FIXED ASSSETS-EQUIPMENT

3.1 Property Officer's Designee
3.2 Property Officer
3.3 Location Control
3.4 Physical Control

4. PHYSICAL SECURITY: ALL COUNTY PROPERTY

4.1 Department/Agency Head and Property Officer Responsibility
4.2 Property Security Suggestions
4.3 Controlled Equipment: Equipment Under $ 5,000

EXHIBITS

Exhibit I - Disposition Order Card (DOC) and Fixed Asset Document (FAD)

Exhibit II - Fixed Assets Tagging Suggestions

Exhibit III - Procedures for the Disposal of Surplus Equipment

Exhibit IV - Property Security Suggestions

SUBJECT:

FIXED ASSETS - EQUIPMENT
NUMBER:

FA.4.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 01/01/85
REVISED: 01/88, 01/94, 06/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Each department/agency head is accountable for all fixed asset equipment items assigned to him/her and shall file with the Auditor-Controller a certified inventory of all County fixed asset equipment items in his/her charge as of the date specified in the schedule of fixed asset inventory dates prepared by the Auditor-Controller pursuant to Title I, Division 4, Article 5 of the Codified Ordinances of the County of Orange.

The Auditor-Controller shall maintain a central inventory record of fixed asset equipment items acquired by, or under the responsibility of, each department/agency head.

1.1 Purpose

To establish procedures to properly account for and control equipment.

1.2 Authority

Authority
Subject

Government Code Section 24051
Inventory of Equipment

Codified Ordinances of the County of Orange, Title I, Division 4, Article 5
Inventory of Equipment

Accounting Standards and Procedures for Counties, State of California
Control of Fixed Assets; Accounting for Fixed Assets; Inventory of Equipment

Board of Supervisors' Resolution No. 93-1390 dated December 14, 1993 Delegation of Fixed Assets Policies and Procedures Revisions to Auditor-Controller

1.3 Definitions

1.3.1 Fixed Assets

The State Controller's Manual, Accounting Standards and Procedures for Counties, defines fixed assets as: "tangible assets of significant value having a utility which extends beyond the current year." Generally, fixed assets are classified in three categories: land, buildings and improvements, and equipment.

1.3.2 Equipment

Equipment is defined as movable property of a relatively permanent nature with a significant value. Equipment items which cost $5,000 or more, including sales taxes, freight charges, and any other taxes, are classified as fixed assets.

Equipment items are capitalized and are maintained in the County's central Fixed Asset Accounting System.

1.3.3 Installed Equipment or Fixtures

Items of equipment which are permanently installed in a building or structure and are not intended to be removed, such as plumbing fixtures, are considered part of the building, and the cost of these items is added to the overall cost of the building or structure.

1.3.4 Field Equipment

Field equipment is checked out from a pool of such items from a central location for use away from that location. Examples of field equipment are County cars in the PFRD/Transportation pool, and maintenance and repair equipment kept at PFRD/Facilities Operations.

1.3.5 Property Officer

The property officer is a department or agency employee who has been designated by the department or agency head as being accountable for equipment for which the department or agency is responsible, although the ultimate responsibility for the equipment remains with the department or agency head.

1.3.6 Property Officer's Designee

The property officer's designee is an employee in the department or agency designated by the property officer to perform any of the functions described in this procedure for the property officer. Any duties in this procedure to be performed by the property officer can be performed by the property officer's designee.

1.3.7 Fixed Asset Document (FAD)

A Fixed Asset Document (FAD) is a card prepared for each equipment item. The FAD displays the fixed asset number, location information, description, serial number, and other identifying information. See Exhibit I.

1.3.8 Disposition Order Card (DOC)

A Disposition Order Card (DOC) is a document prepared when an agency is disposing of an equipment item. The DOC displays the fixed asset number, disposition date, and other information about the disposed equipment. See Exhibit I.

2. ACCOUNTING PROCEDURES

2.1 Budget Classification and Account Coding

All equipment items which cost $5,000 or more, including sales tax, installation, freight charges, and any other taxes, are classified as fixed assets.

Equipment items are budgeted in and charged to the "Equipment" account, Object Code 4000, or, in the case of lease-purchased equipment, to the "Lease Purchase Principal Payment" account, Object Code 3251, and the "Lease Purchase Interest Payment" account, Object Code 3351.

Refer to County Accounting Procedure (CAP) No. FA.2., "Fixed Asset Expenditure Coding," for details on specific items that are included in or excluded from the equipment classification.

2.2 Receipt of Equipment

When a department or agency receives an equipment item, the receiver copy of the purchase order or the partial receiving report is completed and signed. The receiver or partial receiving report is then signed by the department or agency property officer, to acknowledge acceptance of accountability for the fixed asset. If the property officer is also authorized to sign receiving reports for payment, the signature of the property officer on the "AUTHORIZED SIGNATURE" line of the receiver or partial receiving report can signify both approval for payment and acceptance by the property officer. After all required signatures are affixed, the receiver or partial receiving report is forwarded to the Claims and Disbursing Section of the Auditor-Controller. If the receiver contains location information, the Auditor-Controller General Ledger Unit can input this location information into the Fixed Asset Accounting System.

2.3 Issuance of Fixed Asset Number by Auditor-Controller

After receipt of the receiver or partial receiving report and payment for the item by the Auditor-Controller, a fixed asset number is assigned to the equipment item by the General Ledger Unit.

Refer to Section 2.6 of this procedure for procedures for fixed asset numbers preassigned to certain departments or agencies.

2.4 Fixed Asset Document (FAD)

A FAD showing the assigned fixed asset number and location information is sent by the Auditor-Controller to the department or agency responsible for the equipment item.

2.5 Fixed Asset Identification Tag

The Auditor-Controller sends the responsible department or agency a fixed asset identification tag to be affixed to the equipment item. The fixed asset identification tag displays the fixed asset number as shown on the FAD furnished by the Auditor-Controller.

All equipment items are identified for inventory and control purposes by the fixed asset tag, except for:

Items of installed equipment which are considered as part of the structure or other system to which they are attached.

Items to which the fixed asset identification tags cannot be affixed because of the odd sizes or shapes of the items, or because of the manner in which the items are used. If the County property tag will not adhere to an item because of size, shape or use of the item, the department or agency should affix the assigned number in some other manner, i.e., engraving, inscribing, stenciling, etching, or painting the number on the item itself, or labeling the box in which it is kept. The number must be affixed in some way that will ensure identification for accountability.

It is the responsibility of each department or agency head to ensure each fixed asset item is identified by the assigned tag number immediately upon receipt of the tag.

Refer to Exhibit II of this procedure for suggestions on where to affix the fixed asset tag to various types of equipment items.

Refer to Section 2.6 of this procedure for procedures for fixed asset numbers preassigned to departments or agencies.

2.6 Preassigned Fixed Asset Numbers

The Auditor-Controller issues preassigned sets of fixed asset tags/numbers to departments or agencies for use in tagging fixed assets when received. In order to set up fixed assets in the fixed asset system timely and avoid errors, department or agency staff involved in assigning fixed asset numbers must observe the following procedures:

2.6.1 Fixed Asset Number on Receiver

The fixed asset number(s) must be noted on the receiver copy of the purchase order. Fixed asset items cannot be included in the fixed asset system until a number has been assigned. The total price of the item must be $5,000 or more with discounts included.

2.6.2 Lease Purchases

Send to the Auditor-Controller a list of equipment obtained by lease purchase and the fixed asset numbers assigned to the equipment purchased.

2.6.3 Partial Payments

A fixed asset number must be assigned when a partial payment is made even though the equipment item has not been received. The Auditor-Controller must set up the item in the fixed asset system when the first payment is made. The department or agency must keep track of the number assigned until the equipment item is actually received and tagged.

2.6.4 Department or Agency Responsibility

Department or agency staff must keep track of all fixed asset numbers assigned to them. Auditor-Controller staff cannot research the history of fixed asset numbers assigned by department or agency staff.

2.7 Equipment Listings

Each year after the June 30 records are complete, the Auditor-Controller provides a listing of fixed asset equipment items for which each department or agency is accountable. This list is provided so each department or agency can ensure that their fixed asset records are in agreement with the official fixed asset records maintained by the Auditor-Controller. The annual fixed asset listing should also be used to conduct interim inventories as discussed in Section 3.4.4.

2.8 Equipment Purchased for Transfer to Another Agency or Fund

2.8.1 Background and Description

This procedure is used for fixed assets purchased by one agency or fund for transfer to another agency or fund. This procedure should not be used for older assets which are being surplussed for eventual transfer to another agency. Section 2.10 applies in those instances. Examples of the types of transfers covered by this procedure are shown below:

2.8.1.1 CEO/Information & Technology Equipment

Section 2.8 applies when equipment is purchased by Agency Nos. 037 (Data Systems) and 038 (Data Systems Development Projects) on behalf of other agencies and is transferred to their ownership without an accompanying transfer of appropriations. See Sections 2.8.2, 2.8.3, and 2.8.4.

Normally, for CEO/Information & Technology equipment purchases, appropriations will be transferred from 037 Data Systems or 038 Data Systems Development Projects to the owner agency and the equipment will be purchased directly from the owner agency, in which case this procedure would not apply.

2.8.1.2 Bond-Financed Equipmen

Section 2.8 applies when equipment is purchased by a bond-financed fund, but ownership is transferred to the user agencies, such as Probation or PFRD.

2.8.1.3 Equipment Purchased By a Fund for Transfer to Another Fund: No Reimbursement Required

Section 2.8 applies when equipment is purchased by one fund on behalf of another fund, where no reimbursement to the purchasing fund is required from the receiving fund. This situation normally occurs where a fund which receives revenue for a specific program purchases equipment for another fund which operates that program. For example, equipment purchased by the Sheriff's Narcotics Program Fund No. 132, which will be transferred to the Sheriff-Coroner Agency No. 060, would be covered by this procedure. See Section 2.8.5.

2.8.1.4 Restriction

This procedure is solely intended to apply to newly purchased assets which are purchased by one fund or agency, but where ownership is intended to be transferred to a different fund or agency, with no requirement for reimbursement by the receiving fund/agency to the transferor fund/agency. The surplus procedure in Section 2.10 should be used for older assets which one agency wishes to surplus and another agency wishes to receive.

2.8.2 Fixed Asset Numbers Assigned to CEO/Information & Technology

The Auditor-Controller assigns CEO/Information & Technology a block of fixed asset numbers to be used for CEO/Information & Technology equipment and software purchased by CEO/Information & Technology in Agencies 037 or 038.

2.8.3 CEO/Information & Technology Fixed Asset Number Assignment

Upon receipt of equipment, CEO/Information & Technology assigns a fixed asset number, tags the equipment, and prepares a "dummy" FAD, which is completed and forwarded to the Auditor-Controller after payment for the equipment is made and the cost data is obtained from the Expense Budget to Actual report. The Auditor-Controller processes the "dummy" FAD, and forwards the permanent FAD to CEO/Information & Technology.

2.8.4 Transfer List

CEO/Information & Technology prepares a listing of assets, including fixed asset numbers, to be transferred from the purchasing fund/agency which purchased the assets to the receiving fund/agency, attaches the FADs for those assets, and obtains the signatures of both the purchasing (the CEO or his/her designee) and receiving agency head or their designees on the listing. No DOCs are required. CEO/Information & Technology sends the listing with attached FADs to the Auditor-Controller.

2.8.5 Transfers Not Involving CEO/Information & Technology

For transfers of equipment between funds/agencies not involving CEO/Information & Technology, where one fund/agency has purchased equipment on behalf of another fund/agency, the purchasing fund/agency prepares a listing of assets, including fixed asset numbers, to be transferred from the purchasing fund/agency which purchased the assets to the receiving fund/agency, attaches the FADs for those assets, and obtains the signatures of both the purchasing and receiving agency heads or their designees on the listing. No DOCs are required. The listing with attached FADs is sent to the Auditor-Controller. If the purchasing and receiving agency head is one and the same, only one signature is required on the listing of assets.

2.8.6 Auditor-Controller Preparation of DOCs

The Auditor-Controller fills out DOCs based on the transfer list and attached FADs, and makes the changes to the fixed asset system to transfer responsibility for the assets from the fund/agency which purchased the assets to the receiving fund/agency which will be responsible for the assets. The Auditor-Controller sends the new FADs to the receiving agency.

2.8.7 Fixed Asset Inventory

The transferred assets will appear on the fixed asset inventory of the receiving agency, but will continue to reflect the fund/agency which originally purchased the assets as the source of financing of the assets.

2.8.8 Accounting Entries for Internal Service Funds (ISFs)

Fixed assets transferred to ISFs require special accounting entries to ensure that depreciation expense is offset against a revenue account if revenue is not recovered elsewhere (i.e., through the billing rates). Following are the entries required to accomplish this:

Debit Credit

A. Equipment xxx.xx

Deferred Revenue
xxx.xx

B. Depreciation Expense xxx.xx

Accumulated Depreciation
xxx.xx

Deferred Revenue
xxx.xx

Revenue
xxx.xx

To record the depreciation and the offsetting revenue.

2.9 Sales of Fixed Assets between Funds

When a fixed asset owned by one fund is sold to another County fund, requiring reimbursement from the receiving fund to the selling fund, the responsible property officers send a memo to the General Ledger Unit detailing the fixed asset description, fixed asset number, and sales price. A FAD must also be submitted with the memo. General Ledger prepares the accounting entries necessary to record the sale and transfers the item from the selling fund to the buying fund in the fixed asset records.

2.10 Surplus, Transfer, Loan, Donation, Trade-In of Equipment

2.10.1 Disposals and Transfers

Disposals and transfers of surplus equipment shall be performed in accordance with Exhibit III, "Procedures for the Disposal of Surplus Equipment." Exhibit III is not included as it is dependent on the County's surplus procedure which has not yet been finalized.

2.10.2 Loans to Another Agency

When a fixed asset item is loaned to another agency, documentation of the loan must be prepared and retained by the property officer. The record of the loan must be signed by the property officers of both agencies in order to document the transfer of accountability.

2.10.3 Equipment Traded In

If old equipment is traded in for new equipment, the agency must show the full description of the equipment being traded in, including the fixed asset number, on the requisition for the new equipment. A DOC for the equipment being traded in must be completed and sent with a FAD to the Auditor-Controller. The purchase order must be cross-referenced on the DOC, and the "Traded-In" box must be checked. The purchase order for the new equipment should list the traded-in equipment, fixed asset number and trade-in amount.

2.10.4 Vehicle Disposals

Surplus vehicles remain in the fixed asset records of the owning agency until the vehicle is auctioned or scrapped. Following are the steps to be taken when a vehicle is declared surplus and ultimately removed from the fixed asset records:

2.10.4.1 Auctioned Vehicles

When vehicles are auctioned by the Transportation ISF, FADs and DOCs are retained by the owner department or agency until after the vehicles are sold. After the auction, PFRD/Transportation sends a list of auctioned vehicles to the Auditor-Controller General Ledger Unit. The list of auctioned vehicles shows the net proceeds received for each one.

The owner department or agency prepares a DOC for each disposed vehicle, and sends the FADs, DOCs, and a list of auctioned vehicles to the Auditor-Controller General Ledger Unit. Upon receipt of the FADs, DOCs and lists of auctioned vehicles, the General Ledger Unit removes the assets from the fixed asset records.

2.10.4.2 Scrapped or Junked Vehicles

The owner department or agency must send a written declaration that the vehicle will be junked to PFRD/Transportation. PFRD obtains a "junked slip" (customer receipt indicating that the vehicle has been junked) from the Department of Motor Vehicles for scrapped or junked vehicles. A copy of the "junked slip" is sent to the requesting department or agency.

The owner department or agency prepares a DOC for each disposed vehicle. The FADs, DOCs, and junked slips are sent to the Auditor-Controller General Ledger Unit. Upon receipt of the FADs, DOCs and junked slips, the General Ledger Unit removes the assets from the fixed asset records.

2.10.5 Donations of Equipment to Other Organizations or Governmental Agencies

Donations of County-owned equipment to other organizations or governmental agencies must be approved by the Board of Supervisors (Board). After Board approval, the property officer of the agency donating the asset should prepare a DOC for the donated equipment. The DOC, the FAD for the donated equipment, and a copy of the Minute Order or Resolution approving the donation should be sent to the Auditor-Controller. The asset will be removed from the records upon receipt of the completed documents.

2.10.6 Equipment Exchanges with Other Governmental Agencies

Any swaps of County-owned equipment to other governmental agencies in exchange for other equipment must be approved by the Board. The Board action shall contain a description and cost or estimated cost of the equipment being acquired. After Board approval, the property officer of the agency donating the asset should prepare a DOC for the equipment being given to the other governmental agency. The DOC, the FAD for the exchanged equipment, and a copy of the Minute Order or Resolution approving the exchange should be sent to the Auditor-Controller. Upon receipt of the completed documents, the equipment being given to the other governmental agency will be removed from the records. Any equipment acquired in the trade will be added to the records.

2.10.7 Retirement of Dogs or Other Animals

When a dog or other animal is to be retired and removed from the fixed asset records, the property officer of the owner agency should prepare a DOC. The DOC, a FAD, and a memo explaining the circumstances of the retirement, signed by the property officer, should be sent to the Auditor-Controller. The records for the animal will be removed upon receipt of the completed documents.

2.11 Stolen Equipment

2.11.1 Procedure

When fixed assets are discovered to be missing and are believed to have been stolen, the agency must immediately contact the law enforcement agency having jurisdiction (either the County Sheriff-Coroner or a local city police department). Immediately after the Sheriff/police report is completed, the agency must investigate the loss and advise the Auditor-Controller and CEO/Risk Management in writing of the items stolen and the related fixed asset numbers, stating the probability of recovery of the fixed assets, and requesting deletion of the items from the fixed asset inventory and relief of accountability for the items. The letter must also describe the circumstances of the loss and the specific steps which have been taken to modify procedures and increase controls to preclude similar incidents from occurring in the future. A copy of the letter must be sent to CEO/Risk Management by the agency. The letter must be signed by the agency head, or, in his/her absence, by the chief deputy or an assistant director. A copy of the report of the law enforcement agency making the investigation of the suspected theft must be attached to the letter.

The Sheriff/police, Auditor-Controller and CEO/Risk Management must be notified immediately upon discovery of the loss. Late notification may interfere with filing an insurance claim for recovery of the cost of the stolen asset.

2.11.2 Security Analysis

If the agency believes that security procedures may be inadequate, it may request a special security analysis be conducted by the Sheriff-Coroner.

2.11.3 Agency Head Appearance at Board Hearing

The agency head is required to appear at the Board meeting at which the request for deletion of fixed assets is heard, to respond to any possible inquiries regarding agency security procedures. See Section 2.17.

2.12 Damage to or Destruction of Equipment

When a fixed asset equipment item is either irreparably damaged or totally destroyed by fire, collision, vandalism, or any other accidental or natural cause, the incident must be investigated and a letter must be submitted immediately by the department or agency to the Auditor-Controller, giving the fixed asset description and number, a description of the circumstances of the damage or destruction, and a report of any findings and recommendations to prevent a reoccurrence. The letter must request removal of the item from the fixed asset inventory and relief of accountability for the item. The letter must be signed by the department or agency head or, in his/her absence, by the chief deputy or an assistant director, and a copy of the letter must be sent to CEO/Risk Management.

2.13 Missing Equipment

When a department or agency determines that a fixed asset equipment item is irretrievably lost, not stolen or destroyed, a letter must be submitted to the Auditor-Controller stating the fixed asset description and number, and an explanation for the missing item. The letter should request deletion of the missing item from the fixed asset inventory and relief of accountability for the item. The letter must be signed by the department or agency head or, in his/her absence, by the chief deputy or an assistant director, and must include a report of any changes to policies and procedures to prevent a reoccurrence. A copy of the letter should be sent to CEO/Risk Management by the agency. The Auditor-Controller includes the fixed asset item in the next fixed asset write-off package submitted to the Board.

2.14 Assets Dismantled for Parts

If an agency needs to dismantle equipment for spare parts and as a result, the original equipment item will no longer be operational or identifiable, the property officer prepares a DOC, attaching a copy of the FAD, and a letter justifying the need for dismantling the asset. These documents must be prepared at the time that the asset is dismantled. The letter must be signed by the agency head or, in his/her absence, by the chief deputy or an assistant director, and forwarded to the Auditor-Controller. The Auditor-Controller includes the equipment in the next fixed asset write-off package submitted to the Board.

2.15 Obsolete Software/Computer Programs

When a computer program that has been recorded as equipment is replaced or is no longer being used, it is often erased or otherwise removed from the storage device of the computer(s) on which it was being used. If an agency needs to dispose of obsolete software and, as a result, the original software is no longer operational, the property officer prepares a DOC, attaching a copy of the FAD, and a letter justifying the need for disposing of the software. These documents must be prepared at the time that the asset is removed. The letter must be signed by the department or agency head or, in his/her absence, by the chief deputy or an assistant director, and forwarded to the Auditor-Controller. The Auditor-Controller includes the equipment in the next fixed asset write-off package submitted to the Board.

2.16 Physical Inventory of Equipment

Federal Office of Management and Budget Circular A-87 (OMB A-87), requires that every County agency head file a certified inventory of fixed assets with the County Auditor-Controller not less than once every two years. On the date specified in the schedule of property inventory dates prepared by the Auditor-Controller, each agency must perform an inventory of the fixed assets under its control. Inventory procedures and requirements are described inCAP No. FA.5., "Physical Inventory of Fixed Assets."

2.17 Auditor-Controller Report to Board of Supervisors

Three times each year (approximately January, May and September), the Auditor-Controller reports to the Board all missing, stolen, damaged, dismantled and destroyed fixed assets. The report lists all such assets for which all documentation has been completed since the preceding fixed asset write-off report. See reporting schedule in CAP No. FA.2 "Physical Inventory of Fixed Assets." The Auditor-Controller requests authorization to delete these items from the fixed asset inventory and to relieve the department or agency head of accountability. Copies of pertinent documentation are submitted to the Board with the report. When action is taken by the Board authorizing the Auditor-Controller to delete the equipment items from the fixed asset inventory, the Auditor-Controller issues a DOC to delete the equipment and sends a copy to the department or agency that is accountable for the assets.

3. CONTROL PROCEDURES: FIXED ASSETS - EQUIPMENT

3.1 Property Officer's Designee

The property officer's designee is designated by the property officer to perform any of the functions described in this procedure for the property officer. The property officer's designee shall be in the same department or agency as the property officer. Any duties referenced in this procedure to be performed by the property officer can be performed by the property officer's designee. The property officer must submit a list of his/her designees to the Auditor-Controller General Ledger Unit Manager each time designees are assigned or changed.

3.2 Property Officer

3.2.1 Designation of Property Officer

Each department or agency head designates an employee within the department or agency as the property officer. Each department or agency submits written notification to the Auditor-Controller of the name, title and telephone number of the person designated and submits written notification each time the property officer is changed.

3.2.2 Responsibilities of Property Officer

3.2.2.1 Approval of Receivers

The property officer must sign all receiving reports for fixed asset equipment items before they are forwarded to the Auditor-Controller, as described in Section 2.2 of these procedures.

3.2.2.2 Assignment of Equipment to Locations

The property officer assigns fixed asset equipment items to a responsible individual at each location in the department or agency. Locations are selected as described in Section 3.3.1.

3.2.2.3 Affixing of Equipment Identification Tags

Upon receipt of the fixed asset tag from the Auditor-Controller, the property officer directs the responsible individual to affix the tag to the equipment and updates the lists described in Section 3.3.4. The property officer also updates the central inventory records by adding location information to the FAD. An updated FAD copy must be returned to the Auditor-Controller for processing.

3.2.2.4 Fixed Asset Records

As described in Sections 3.3.6 and 3.3.7, the property officer maintains, coordinates, and reconciles the department or agency fixed asset location records.

3.2.2.5 Physical Security

The property officer is responsible for implementing and maintaining effective physical security measures for fixed assets and for all other department or agency property.

3.2.2.6 Inventory

The property officer is responsible for coordinating inventories of property under the control of the department or agency, for assembling the certified fixed asset inventory documentation, and for preparing the sixty-day follow-up for missing items, as described in CAP No. FA.2.

3.2.2.7 Disposition Order Cards (DOCs)

The property officer is responsible for ensuring the DOCs are completed timely and accurately for all actions involving fixed assets which require preparation of a DOC.

3.2.2.8 Stolen, Destroyed, Dismantled, and Damaged Fixed Assets

The property officer is responsible for preparing the required letter and for following up on incidents of stolen, destroyed, dismantled and damaged fixed assets.

3.3 Location Control

3.3.1 Selection of Locations

The property officer selects locations of the department or agency for location control of fixed assets. Locations should correspond to one or more offices or geographical work site locations in the department or agency.

3.3.2 Assignment of Equipment to Responsible Individual

The property officer assigns fixed asset equipment items to a responsible individual at each location in the department or agency. Locations are selected as described in Section 3.3.1.

3.3.3 List of Employees Responsible for Equipment

The property officer prepares and maintains a department- or agency-wide list of the names, locations, and telephone numbers of all responsible individuals.

3.3.4 Location Equipment Lists

The property officer provides the responsible individual at each location a listing of fixed assets under his/her control. The property officer is responsible for maintaining a complete listing of fixed assets under the control of each responsible individual.

3.3.5 Changes in Physical Location

The location equipment lists are maintained by the responsible individual at each location. Changes in physical location must be documented and reported to the property officer on the day on which they occur.

3.3.6 Location Records

The property officer maintains a current record, by location, of all fixed assets within the department or agency. If no other method is available within the department or agency, the following method can be employed by the property officer to maintain location records:

Utilizing the FADs issued by the Auditor-Controller, sort by location with divider cards separating each location. If locations are identified by organization codes, the Auditor-Controller can provide a computer listing of equipment in location order upon request. These listings can be manually updated for additions and deletions. The Auditor-Controller's computer listing is updated for location changes by submitting updated FADs to the Auditor-Controller.

3.3.7 Reconciliation of Location Records to Auditor-Controller Records

Location records must be reconciled in total by the property officer to the Auditor-Controller's records at least once each year to ensure that department or agency records are in agreement with the Auditor-Controller's fixed asset equipment records. One way this may be accomplished is by performing an interim, annual inventory. Documentation of the reconciliation must be retained by the property officer.

3.4 Physical Control

3.4.1 Securing Unassigned Portable Equipment

All unassigned portable equipment items must be maintained in a secured area and are the responsibility of the designated responsible person at that specific location. This procedure is directed toward portable equipment items available for check out by various department or agency employees for use away from the assigned location. These items must be secured at all times when not in use by means of locked cabinets or locked storerooms. Issuance of these items shall be in accordance with the procedures in Section 3.4.3.

3.4.2 Securing Permanently Assigned Equipment

Easily portable equipment items permanently assigned to department or agency personnel for in-office use should be secured daily by being locked in desks or stored in a locked cabinet when not in use.

3.4.3 Sign-Out / Sign-In Log

Only authorized personnel are permitted to sign out field equipment. A sign-out / sign-in log must be maintained by the responsible individual at each location. Although the format is discretionary, it must include the following:

Description of Item.

Serial number and fixed asset number.

Name of user.

Date and time checked out and returned.

Signature of user, both in and out.

Issuer's initials, both out and in.

This log is used for checking out and returning all equipment items designated for field use.

3.4.4 Interim Inventories

The property officer takes random samples of fixed asset inventories throughout the year to serve as an internal control device and to provide to the department or agency identification of potential internal control inadequacies on a current basis. Such inventories of randomly selected locations are performed as often as deemed necessary by the property officer.

3.4.5 Physical Security Measures

Additional physical security measures for all County property are discussed in Section 4 of these procedures.

4. PHYSICAL SECURITY: ALL COUNTY PROPERTY

4.1 Department or Agency Head and Property Officer Responsibility

Each department or agency head is responsible for ensuring that all County property under his/her control is adequately protected from theft, loss, damage, and destruction. The property officer of each department or agency develops and implements procedures necessary to safeguard all County property under the control of the department or agency, including both fixed assets and controlled equipment.

4.2 Property Security Suggestions

The security measures included on the attached Exhibit IV, "Property Security Suggestions," should be considered for implementation by each department or agency. The responsibility for determining the cost-effectiveness of implementing these security suggestions rests with each department or agency. The cost of the security measures must be weighed against the cost of the assets exposed to loss, the incidence of crime in the area of a particular office, the ease of access to the office, and budgetary constraints.

4.3 Controlled Equipment: Equipment Under $5,000

Each department or agency is responsible for establishing adequate inventory controls for controlled equipment, which is movable property having a utility that extends beyond the current year and a cost of less than $5,000. As with all internal controls, management is responsible for assessing the expected benefits and related cost of control procedures. Therefore, the decision as to which equipment should be controlled is one which must be made by management. Equipment items which are easily portable and susceptible to theft should be controlled. Additionally, there may be other equipment items that should be controlled if specific circumstances and/or dollar values indicate the need for control.

Procedures similar to those described in Section 3 must be utilized for all controlled equipment. Periodic inventories of controlled equipment must be performed, using a serial number or a department or agency assigned number to identify the equipment for inventory purposes. The Internal Audit Department reviews and comments upon the adequacy of the internal procedures and inventory controls covering controlled equipment as part of each regularly scheduled department or agency audit.

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Physical Inventory of Fixed Assets

SUBJECT:

PHYSICAL INVENTORY OF FIXED ASSETS
NUMBER:

FA.5.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 11/78
REVISED: 01/94, 12/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions

2. ACCOUNTING PROCEDURES

2.1 Before Inventory
2.2 During Inventory
2.3 After Inventory
2.4 Reporting Schedule

3. DEFICIENCIES IN DEPARTMENTAL OR AGENCY INVENTORY PROCEDURES

3.1 General Ledger Review/Property Officer Response
3.2 Referral to Auditor-Controller Cost Studies/Mandated Audits
3.3 Referral to Internal Audit Department
3.4 Unresolved Deficiencies
3.5 Issuance of Acceptance Letter

EXHIBITS

Exhibit I - Inventory of County Property Form

Exhibit II - Listing of Exceptions to Fixed Asset Inventory

Exhibit III - Fixed Asset Inventory Procedures Questionnaire

Exhibit IV - Fixed Asset Inventory Sixty-Day Follow-Up Letter

Exhibit V - Reporting Schedule for Physical Inventories and Missing, Stolen, Damaged, Dismantled and Destroyed Fixed Asset Equipment Items

SUBJECT:

PHYSICAL INVENTORY OF FIXED ASSETS
NUMBER:

FA.5.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 11/78
REVISED: 01/94, 12/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Each department, agency, and district shall conduct an inventory of fixed assets as of the date specified in the schedule of fixed asset inventory dates prepared by the Auditor-Controller pursuant to Title I, Division 4, Article 5 of the Codified Ordinances of Orange County. The certified fixed asset inventory listing must be filed with the Auditor-Controller no later than the last day of the month following the month in which the inventory was started.

1.1 Purpose

To establish a policy and related procedures to ensure an accurate and complete count of fixed asset items.

1.2 Authority

Authority
Subject

Government Code Section 24051
Requires periodic inventory of equipment

Codified Ordinances of the County of Orange, Title I, Division 4, Article 5
County implementation of Section 24051 "Inventory of Equipment," permits staggered inventory schedule for various county departments and agencies

Accounting Standards and Procedures for Counties, State of California
Control of Fixed Assets; Accounting for Fixed Assets; Inventory of Equipment

Board of Supervisors' Resolution No. 93-1390 dated December 14, 1993
Delegation of Fixed Assets Policies and Procedures Revisions to Auditor-Controller, Including Establishment of $5,000 Minimum Capitalization Limit

Federal Office of Management and Budget Circular A-87(OMB A-87) Requires that every County agency head file a certified inventory of fixed assets with the County Auditor-Controller not less than once every two years. On the date specified in the schedule of property inventory dates prepared by the Auditor-Controller, each agency must perform an inventory of the fixed assets under its control.

1.3 Definitions

1.3.1 Fixed Assets

The State Controller's Manual, "Accounting Standards and Procedures for Counties," defines fixed assets as "tangible assets of significant value having a utility that extends beyond the current year." Generally, fixed assets are classified in three categories: land, buildings and improvements, and equipment. Fixed assets include equipment which costs $5,000 or more, including sales taxes, freight charges, and installation.

1.3.2 Equipment

Equipment is defined as movable property of a relatively permanent nature with a significant value. Equipment items that cost $5,000 or more, including sales taxes, freight charges, and any other taxes, are classified as fixed assets.

Equipment items are capitalized and are maintained in the County's central fixed asset accounting system.

1.3.3 Property Officer

The Property Officer is an employee within a department/agency who has been designated by the department/agency head as being accountable for the property charged to the department/agency, although the ultimate responsibility for the property remains with the department/agency head. The Property Officer must report directly to the department/agency head. The Property Officer is responsible for overall supervision of the inventory and for assembling the required documentation of the inventory.

1.3.4 Coordinator

The Coordinator is the individual responsible for the planning, coordination and control of the physical inventory. If the Coordinator is not also the Property Officer, he or she must report directly to the Property Officer during his/her tenure as coordinator.

1.3.5 Count Team

The Count Team is comprised of the following two individuals:

Locator - The individual responsible for identifying and calling out the description and identification number of the asset.

Recorder - The individual responsible for recording the data called out by the locator.

2. PROCEDURES

Upon notification from the Auditor-Controller's Department that a fixed asset inventory is required, the Property Officer prepares written instructions for the Coordinator and Count Team incorporating the procedures listed below. The instructions are to be submitted by the Property Officer to the Auditor-Controller General Ledger Unit for review and approval. Any anticipated deviations from these standard procedures should be discussed with and authorized by the Auditor-Controller General Ledger Unit prior to conducting the inventory.

To facilitate a complete and accurate count, the Auditor-Controller Department has developed the following standard procedures for the physical inventory of fixed assets. To assure a complete and accurate inventory, the instructions must be followed and the count teams must proceed in an orderly and systematic manner. The Auditor-Controller Department will provide an official fixed asset listing (computer printout) prior to the inventory date.

RESPONSIBILITY
STEP
ACTION

2.1 Before Inventory

Coordinator 1. Assigns individuals to count teams.

2. Establishes times and locations for the teams.

3. Sends a copy of the department's/ agency's inventory procedures to the Auditor-Controller General Ledger Unit for review. Notifies the Auditor-Controller of the inventory date.

4. Distributes inventory procedures and instructions, makes specific assignments, and answers any questions for the count teams. It is recommended that the department/agency Property Officer schedule and conduct a pre-inventory meeting at which all participating persons are present.

Auditor-Controller 5. Reviews the department's/agency's inventory procedures for compliance with this Procedure. Notifies the department/agency of any required additions or changes.

2.2 During Inventory THE LOCATOR AND RECORDER CAN ALTERNATE DUTIES DURING THE COURSE OF THE INVENTORY

Count Team - Locator:
Tagged Fixed Assets
6. The Locator shall progress through rooms and buildings in a systematic manner so that all assets will be inventoried.

Reads the fixed asset number from the standard County fixed asset tag together with the description and the serial number, if applicable.

Marks the fixed asset to indicate that it has been inventoried.

Count Team - Recorder:
Tagged Fixed Assets
7.

Repeats the data as read and traces each item to the fixed asset listing.

Indicates that the item has been accounted for and adds location information to the Fixed Asset Document (FAD), if desired, to update the Fixed Asset Accounting System records, or records location information for updating departmental location lists.

Records, on an exceptions listing, those tagged items that are not on the fixed asset listing.

Count Team - Locator:
Untagged Fixed Assets
8. Calls out the description, serial number, and location of untagged fixed assets. These assets shall be marked so that they can be easily identified later.

Count Team - Recorder:
Untagged Fixed Assets
9. Records untagged fixed assets on an exceptions listing.

Count Team - Locator:
Mutilated Fixed Asset Tags
10. Identifies mutilated fixed asset tags and marks the assets so that they can be easily identified later.

Count Team - Recorder:
Mutilated Fixed Asset Tags
11. Records assets with mutilated fixed asset tags on a separate listing.

2.3 After Inventory

Coordinator
12. Forwards any updated FADS to the Auditor-Controller General Ledger Unit to revise the master location records of fixed assets.

13. Replaces all mutilated fixed asset tags. (Step 11)

14. Consolidates the list of all tagged items not on the inventory listing (Step 7), and takes the necessary steps to have them placed on the final inventory listing.

15. Consolidates the list of all untagged items (Step 9) and determines the proper fixed asset numbers from the Inventory listing. Supervises the tagging of these items.

16. Examines the inventory listing and prepares a list of all fixed assets that have not been located and inventoried.

Property Officer 17. Prepares the Certified Inventory

The Property Officer prepares a final inventory listing, certified by the department/agency head, and submits it and the list of exceptions to the Auditor-Controller General Ledger Unit no later than the last day of the month following the month in which the inventory was started.

The certified inventory shall consist of the following:

Inventory of County Property Form
The Inventory of County Property certification form (Form F0132-150) shall be signed by the department/ agency head. In the case of a department/agency head changeover inventory, the incoming department/ agency head signs the "Receipt of Incoming Officer" portion of the form. See Exhibit I.

Listing of Exceptions
The listing of exceptions to the computer printout of the inventory includes items listed on the printout which were not found, and items found which were not listed on the printout. All exceptions must be fully explained. Any missing items which have previously been reported to the Auditor-Controller as having been stolen should be so noted. Exhibit II of this procedure displays an example of a properly completed listing of fixed asset inventory exceptions.

Computer Printout - Inventory Listing
The computer printout of the fixed asset inventory supplied by the Auditor-Controller General Ledger Unit shall be submitted with the Inventory of County Property form and the exception listing. The Auditor-Controller printout must be submitted to ensure that all fixed assets are included in the inventory

18. Directs department/agency personnel to attempt to locate all missing items and to determine the reasons for the loss of the missing items.

19. Prepares the Fixed Assets Inventory Procedures Questionnaire (Exhibit III), signed by the department/agency head, and submits it to the Auditor-Controller General Ledger Unit no later than the last day of the month following the month in which the inventory was started.

Property Officer 20. Prepares the Sixty-Day Follow-Up Letter

The department or agency is permitted sixty (60) calendar days from the end of the month in which the inventory was taken to locate any items reported missing on the inventory certification or, if some items still cannot be found, to determine the reasons for the shortage.

On or before the end of this sixty (60) day period, the Property Officer files a letter with the Auditor-Controller. The letter shall

Report items found,

Report items still missing,

Include explanations for the items still missing,

Request deletion of the missing items from the fixed asset inventory and relief of accountability for the items, and

Report any findings and resulting recommendations to prevent a reoccurrence of missing items.

The letter must be signed by the department/agency head, or in his/her absence by the Chief Deputy or an Assistant Director. A copy of the letter shall be sent by the department/agency to the County Executive Office (CEO) Risk Management Division. Exhibit IV of this procedure displays an example of a properly prepared sixty-day follow-up letter.

Auditor-Controller 21. Inspects documents submitted by the department or agency for deficiencies in the inventory procedure. If there are no unresolved deficiencies, the Auditor-Controller sends a letter to accept the inventory to the department or agency head. This letter is signed by the Auditor-Controller and is distributed to the CEO and the departmental/agency property officer. Any recommendations for improvements of fixed asset controls are contained in this letter.

2.4 Reporting Schedule

A reporting schedule for physical inventories and missing, stolen, damaged, dismantled and destroyed fixed asset equipment items is shown in Exhibit V.

3. Deficiencies in Departmental or Agency Inventory Procedures

3.1 General Ledger Review/Property Officer Response

The Fixed Asset Inventory Procedures Questionnaire, written departmental inventory procedures, Inventory of County Property Form, listing of exceptions, and Sixty-Day Follow-Up Letter will be reviewed by the Auditor-Controller General Ledger Unit for compliance with this procedure. If this review reveals apparent deficiencies, the General Ledger Manager will attempt to resolve the problems with the departmental or agency Property Officer.

3.2 Referral to Auditor-Controller Cost Studies/Mandated Audits

If inventory procedure problems cannot be resolved by the Auditor-Controller General Ledger Manager and the departmental/agency Property Officer, the General Ledger Manager shall communicate his/her concerns to the Auditor-Controller Cost Studies/Mandated Audits Manager. The General Ledger Manager shall send the following:

Written descriptions of any apparent deficiencies in the inventory procedure

The Fixed Asset Inventory Procedures Questionnaire for the affected department/agency

Departmental/agency procedures for conducting the inventory

Inventory of County Property Form, listing of exceptions, and Sixty Day Follow-Up Letter

The Cost Studies/Mandated Audits Manager shall attempt to resolve the inventory problems with the affected department/agency.

3.3 Referral to Internal Audit Department

If the Auditor-Controller Cost Studies/Mandated Audits Manager cannot resolve the inventory problems with the department/agency, the Auditor-Controller will refer the inventory to the Internal Audit Department, requesting further review. The Internal Audit Department will then perform whatever procedures it deems necessary to audit the inventory. Internal Audit will provide recommendations of corrective action in a written audit report in accordance with Administrative Procedure No. 1 of the Audit Oversight Committee, which includes distribution to the Auditor-Controller, CEO, Board of Supervisors, Clerk of the Board, and situationally includes distribution to the District Attorney.

3.4 Unresolved Deficiencies

If inventory deficiencies cannot be corrected based on review by the Internal Audit Department, the issues will be presented by the Internal Audit Department to the Audit Oversight Committee for resolution in accordance with Audit Oversight Committee Administrative Procedure No. 1.

3.5 Issuance of Acceptance Letter

Once corrective action is taken as determined by the Auditor-Controller Cost Studies/Mandated Audits Manager, or by the Internal Audit Department if requested by the Auditor-Controller, the Auditor-Controller will send the letter of acceptance of the inventory to the department/agency director. See Step 21 of Section 2.3, above.

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Capital Asset Impairments

SUBJECT:

CAPITAL ASSET IMPAIRMENTS
NUMBER:

FA.6.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 6/06

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Each department/agency head is accountable for all capital assets assigned to him/her and shall notify the Auditor-Controller of any potential impairment of these assets as soon as possible.

1.1 Purpose

To establish procedures and guidelines for departments/agencies to use in reporting the possible impairment of capital assets.

1.2 Authority

Governmental Accounting Standards Board Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries (GASB 42), issued in November 2003, which became effective for the County of Orange beginning with Fiscal Year 2005-06.

1.3 Definitions

1.3.1 Capital Assets

The State Controller"s Manual, Accounting Standards and Procedures for Counties, defines capital assets as "tangible assets of significant value that have a utility that extends beyond the current year." Generally, capital assets are broadly classified as land, buildings and improvements, infrastructure, and equipment.

1.3.2 Impaired Capital Asset

A capital asset is considered impaired when its service utility has declined significantly and unexpectedly.

1.3.3 Service Utility

The usable capacity an asset was expected to provide when the capital asset was acquired.

2. PROCEDURES

GASB 42 establishes accounting and financial reporting standards for impairment of capital assets, including equipment, land, buildings and improvements, and infrastructure. The following procedures are established to evaluate major events affecting capital assets to determine if the asset is impaired. The value of any capital asset that has been significantly impaired as defined in GASB 42 must be adjusted and reported on the financial statements. Financial statement disclosures are required for impaired capital assets still in use, impaired capital assets that are idle, and for insurance recoveries.

GASB 42 emphasizes that the County is only required to assess the possibility that a capital asset is impaired if the circumstances indicating potential impairment are prominent, conspicuous and known to department/agency management and prompted discussion with the Board of Supervisors or reported in the media. The Statement further states that absent such events, the County is not required to perform additional procedures to identify potential capital asset impairments beyond those already performed as part of their normal operations. Exhibit A summarizes the capital asset impairment decision process.

Based on the specific guidelines discussed in the above paragraph, departments and agencies are required to complete the Notification of Capital Asset Impairments (Exhibit D) to identify potential impairments and to test whether the impairment has occurred for only those capital assets that have experienced significant events or changes in circumstances other than the normal decline in service utility. The completed form should be sent to both the Auditor-Controller General Ledger Unit and CEO- Risk Management.

2.1 Completing the Notification of Capital Asset Impairment Form (Exhibit D)

2.1.1 Part A: Potential Indicators of Impairments

The first step in identifying potential capital asset impairment, where the service utility of the asset has been significantly impaired, is to determine if any of the following circumstances exist. Examples have been provided for illustrative purposes:

1. Evidence of physical damage

Example - A building damaged by fire or flood requiring restoration efforts to restore service utility.

2. Changes in legal or environmental factor that affect usage

Example - The useful life of underground storage tanks was significantly curtailed by the adoption of more stringent environmental regulations.

3. Technological change or obsolescence

Example - A scanning electron microscope that is rarely used because newer equipment provides better service.

4. Change in the manner or expected duration of use

Example - A building that the County has decided to sell and is not being used.

5. Construction stoppage

Example - A permanent stoppage of building construction following the discovery of an endangered species at the construction site.

2.1.2 Part B: Impairment Tests

The presence of one of the potential indicators does not necessarily indicate that impairment has occurred. Two impairment tests, both of which must be met, should be applied once a capital asset has been identified as potentially impaired as described in Section 2.1.1.

Test 1 Is the magnitude of the decline in service utility significant?

The guidance in GASB 42 is intended to apply only to losses in service utility that are likely to be significant to the County. If the cost to restore the asset to continue operation is significant in relation to the service utility of the asset, this impairment test might be met.

Test 2 Is the decline in service utility unexpected or is it part of the normal life cycle of the capital asset?

Management is not expected to foresee with accuracy the useful life of a capital asset or the service utility throughout its useful life. It is only natural that capital assets lose service capacity with age and use. Such foreseeable changes are not evidence of capital asset impairment. Additionally, sometimes the level of demand for a capital asset is significantly less than anticipated. Such reduced demand should not, of itself, be treated as a capital asset impairment.

Is the capital asset still in use? If no, provide the date the asset was taken out of service.

2.1.3 Part C: Temporary Impairments and Capital Assets That Do Not Meet Impairment Test

Generally, capital asset impairment should be considered permanent (e.g. physical damage) and the asset"s value must be adjusted. However, in certain circumstances (e.g., change in the manner or duration of use, technological changes, changes in manner of use, or construction stoppage) evidence may be available to demonstrate that the impairment will be temporary. In such circumstances, no impairment loss would need to be recognized in the financial statements.

1 Is the impairment temporary? If yes, give dates the asset was not in use.

The department must have sufficient evidence to prove the impairment is temporary. For example, construction on an airport runway is stopped because of lack of funding. However, funding from the State is expected to be approved in the future. In this circumstance, there is evidence the impairment is temporary and no impairment loss would be reported.

2 An event or circumstance indicated possible impairment but the Impairment Tests (detailed in Section 2.1.2) were not met.

Has the useful life of the asset changed because of the event or circumstance? If yes, indicate new estimated useful life.

2.1.4 Part D: Insurance Recovery

The impairment loss of a capital asset must be reported on the financial statements net of any associated insurance recoveries.

1 Was any insurance recovery received for the capital asset impairment? If yes, reference the transaction or deposit order number and date.

2.2 Measurement of Capital Asset Impairment

Based on the information provided by departments/agencies on the Notification of Capital Asset Impairments Form, the Auditor-Controller will make any calculations necessary to measure the impairment and adjust the value of the asset to comply with GASB 42 requirements. The following methods are used to measure the impairment loss for capital assets that will continue to be used by the County. See Exhibit B for a summary of the measurement methods.

2.2.1 Restoration Cost Approach

The restoration cost approach is generally used to measure the estimated cost to repair physical damage and restore the asset to its original condition so it can continue to be used by the department.

2.2.2 Service Units Approach

Impairments that are caused by changes in legal requirements, environmental factors, technological changes or obsolescence, or change in the manner or duration of use generally will be measured using the service units approach. This approach determines the amount of the impairment based on the loss of productivity provide by the asset before and after the impairment occurred. The cost of the loss of productivity is the impairment loss reported on the financial statements.

2.2.3 Deflated Depreciated Replacement Cost Approach

This approach is an alternative method that can be used when the impairment is caused by a change in the manner or duration or use of the asset. This method calculates what the depreciated cost of a replacement capital asset would be as a means to determine the relative portion of the historical cost of the impaired capital asset. This estimated current cost of the replacement asset is depreciated to reflect the age of the impaired asset, and then deflated to convert it to historical cost dollars.

2.3 Impaired Capital Assets No Longer in Use

The value of an impaired capital asset that is no longer used by the County will be adjusted by the Auditor-Controller to the lower of carrying value or fair market value.

2.4 Department or Agency Head Certification

Each year after the June 30 records are complete, the Auditor-Controller will send to each department or agency director a certification form (Exhibit C) to sign certifying whether he/she is aware of any capital asset impairments in accordance with this procedure. The certification form will be submitted to the Auditor-Controller General Ledger Unit

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How the Property Tax System Works

The Assessor (1) establishes the assessed value of your property by appraising your property as required by State Law. The assessed value of your property is placed on a list called the Assessment Roll.

The Assessor then sends the Property Owner (2) a valuation card/ letter which contains the valuation of the property as of January 1. Around the same time, the Assessor sends the Assessment Roll to the Auditor Controller (3).

The Auditor Controller (3) calculates the ad valorem tax rates and applies them, along with Mello Roos taxes and special assessments from taxing authorities (5) such as cities, schools, county and special districts, to the assessed value from the Assessment Roll, creating the Extended Tax Roll.

The Tax Collector (4) uses the Extended Tax Roll to print the Tax Bill which is sent to the Property Owner. When the Tax Bill is paid, the Tax Collector records that payment against the tax balance due and releases the money to the Auditor Controller(3).

The Auditor Controller (3) then distributes the tax dollars to the appropriate taxing authorities (5), such as cities, schools, county and special districts. (See "Where Your Tax Dollar Goes")

See "How the Revision/Refund Tax System Works"

How the Revision/Refund Tax System Works

The Assessor(1) sends the Property Owner (2) a valuation card/ letter which contains the valuation of the property as of January 1. If the Property Owner disagrees with the valuation, they may contact the Assessor's Office and discuss the reason for the valuation. If the Assessor agrees that the valuation should be changed, the Assessor will notify the Auditor Controller (4).

In the event the Property Owner is not satisfied with the result, they may then file an appeal with the Clerk of the Board's (3) Assessment Appeals Board. The Assessment Appeals Board will hold a hearing on the appeal and forward the results to the Auditor Controller.(4)

If there has been a change in valuation, the Auditor Controller will recalculate the taxes due and send the results to the Tax Collector.(5)

The Tax Collector will then send either a Revised Tax Bill or a Refund to the Property Owner.

See "How the Property Tax System Works"

Cost Applied and Interfund Transactions

SUBJECT:

COST APPLIED AND INTERFUND TRANSACTIONS
NUMBER:

J.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 2/1/78
REVISED: 7/1/84, 1/1/91, 5/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions

2. PROCEDURES

2.1 Authorized Cost Transfers
2.2 Use of Cost Applied, Revenue, or Reimbursement
2.3 Budgeting for Cost Transfers
2.4 Accumulating Costs to be Transferred
2.5 Frequency of Cost Transfers
2.6 Other Types of Cost Transfers
2.7 Cost Transfer Methodology

COUNTY ACCOUNTING PROCEDURES MANUAL
AUDITOR-CONTROLLER, COUNTY OF ORANGE

SUBJECT:

COST APPLIED AND INTERFUND TRANSACTIONS
NUMBER:

J.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 2/1/78
REVISED: 7/1/84, 1/1/91, 5/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Interdepartmental and interfund service charges are to be billed to the user department, agency, or district in each of the following instances:

The user department, agency, or district receives reimbursement from outside funding sources such as the State and Federal governments; or

The user fund is outside the General Fund; or

In cases when the County Executive Office (CEO) determines the desirability of cost transfers, such as when use of a service may be controllable by the user department, agency, district or fund.

Billable charges between County General Fund departments and agencies are to be cost applied. Billable charges between funds are to be coded as either revenue or reimbursement depending upon the nature of the charges.

1.1 Purpose

To establish a procedure for determining and processing charges for services and materials between departments, agencies, and districts.

1.2 Authority

Authority
Subject

Government Code Section 26881 & Board of Supervisors Resolution No. 82-162 dated February 2, 1982
Authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors.

Board of Supervisors Resolution No. 97-414 dated September 16, 1997
Establishes the current cost transfer policy.

1.3 Definitions

1.3.1 Cost Transfer

A cost transfer is a billing for costs of materials and services provided by one department or fund to another. Cost transfers can be classified into one of three categories: cost applied, revenue, or reimbursement.

1.3.2 Cost Applied

A cost applied is a cost transfer between agencies within the County General Fund. Cost applieds are credited to Object 5100, "Intrafund Transfers," in the charging agency.

Example 1: Sheriff charges to departments/agencies within the County General Fund for transportation and specific security services provided.

Example 2: PFRD charges to departments/agencies within the County General Fund for alterations and improvements.

Example 3: Employee physicals funded through HCA (Agency 042) for other the County General Fund departments.

1.3.3 Revenue (Quasi-External Transaction)

A revenue (quasi-external transaction) is a cost transfer by one fund to another fund for staff services performed or for the sale of materials between different funds. All charges by Internal Service and Enterprise Funds are recorded as revenue.

Example 1: PFRD charges to special district funds for services provided.

Example 2: PFRD charges to proprietary funds for administrative services provided.

Example 3: Telephone Internal Service Fund charges to departments and agencies.

1.3.4 Reimbursement

A reimbursement is a repayment of amounts remitted on behalf of another fund. These are interfund transactions that constitute reimbursements to a fund and are for expenditures initially made from one fund that properly apply to another fund. These transactions are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund being reimbursed. Wherever possible, items shall be directly budgeted, encumbered and paid from the benefiting fund in order to minimize double budgeting and unnecessary reimbursement transactions.

Example 1: A contract funded through PFRD (Fund 100, Agency 080) for service provided to Harbors, Beaches, and Parks (Fund 405), Flood Control (Fund 400), and Road (Fund 115).

Example 2: Employee physicals funded through HCA (Fund 100, Agency 042) for funds other than the County General Fund.

2. PROCEDURES

2.1 Authorized Cost Transfers

During the budget process, the CEO will spot check the cost applied detail of service departments to insure that they comply with the cost applied policy. Service departments will be required to provide details of cost applieds in their budgets. Departments have primary responsibility to notify customer departments and achieve agreement on services and charges. CEO resolution of differences is a last resort.

2.2 Use of Cost Applied, Revenue, or Reimbursement

The following describes the use of the three types of cost transfers. With each type, a debit entry is made to the billed entity's object which best identifies the service or supply received. The credit entry is dependent upon the type of transfer.

2.2.1 Cost Applied

Cost transfers between agencies within the County General Fund are recorded as cost applied entries. The County General Fund is comprised of all agency numbers from 001 through 099 within the County General Fund 100. A credit entry is recorded to the billing department's/agency's Object 5100 account.

2.2.2 Revenue

Cost transfers for services and/or supplies from one fund to another fund are recorded as revenue in the charging fund, and to an appropriate expenditure account in the fund being billed. For these cost transfers, a credit entry is recorded to an appropriate revenue account of the billing department/agency.

2.2.3 Reimbursement

Cost transfers for repayment of contract/purchase order charges incurred by one fund which properly belong to another fund are recorded as reimbursements. Reimbursements for "Services and Supplies" expenditures are recorded as credits to the billing fund's "Services and Supplies Reimbursements" account, Object 2900. Reimbursements for "Other Charges" expenditures are coded to the "Other Charges Reimbursements" account, Object 3950. Reimbursements for Capital Projects (Agency 036) expenditures are coded to the "Building and Improvements Reimbursements" account, Object 4209. Use the same Organization code ("P" Org) that is used in the "Buildings and Improvements" account, in Object 4200, to identify the capital project.

2.3 Budgeting for Cost Transfers

The budgeting requirements for cost transfers vary depending upon whether the transfer is a cost applied, a reimbursement, or a revenue.

2.3.1 Cost Applied

Budget specific appropriations, as required, offset by negative appropriations in the Object 5100 account. During the budget process, complete the Cost Applied Detail Schedule as directed in the CEO's Budget Manual. Inform the departments/agencies which will be billed of the estimated amount of these charges. The user department's concurrence should appear on the charging department's Cost Applied Detail Schedule.

2.3.2 Revenue

Budget specific appropriations, as required, offset by estimated revenues in the appropriate revenue sources/sub-sources for the projected charges to other funds. Inform the departments/agencies which will be billed of the estimated amount of these charges.

2.3.3 Reimbursement

Budget specific "Services and Supplies" appropriations, as required, offset by negative appropriations in the "Services and Supplies Reimbursements" account, Object 2900. Budget specific "Other Charges" appropriations, as required, offset by negative appropriations in the "Other Charges Reimbursements" account, Object 3950. Budget specific "Buildings and Improvements" appropriations, as required, offset by negative appropriations in the "Building and Improvements" account, Object 4209. Complete the appropriate detail forms as directed by the CEO in the Budget Manual. Inform the departments/agencies which will be billed of the estimated amount of these charges and receive concurrence.

2.3.4 Rates Used for Budgeting

Whenever possible, billing rates are set at the beginning of the year to be used the entire year. User departments project a specified number of units at that rate for budget purposes.

2.3.5 Budget Modifications and Mid-Year Budget Adjustments for Cost Transfers

Departments are expected to absorb most changes within existing appropriations. Departments should recognize unanticipated revenues where possible to help absorb other charges. The CEO may recommend an appropriation transfer from elsewhere in the General Fund as a last resort. Expense Budget transfers from other objects should be processed through the Auditor-Controller. Transfers from Salaries and Employee Benefits require CEO approval per Board of Supervisors' Resolution #97-415 dated September 16, 1997. Increases to overall appropriations and estimated revenues or cost applied objects require approval by the Board of Supervisors, by 4/5 approval.

2.4 Accumulating Costs to be Transferred

Billing departments must adequately document the computation of costs transferred to other departments/agencies/districts. Acceptable methods of computing and accumulating such costs include:

2.4.1 Job Cost Accounting

The job cost accounting system may be used to accumulate costs and charges for billing to user departments. Charges for some services provided by the Public Facilities & Resources Department are automatically billed through the job cost accounting system.

2.4.2 Org (Organization)

Org (Organization) coding may be used to accumulate charges to user departments. However, the Org accounting system must be utilized as an organizational accounting system, and not solely as a cost accounting system.

2.4.3 Other Cost Accumulation Methods

If the billing department does not utilize job cost accounting and cannot accumulate costs by Org, an alternate record of costs to be transferred must be maintained. The documentation must provide a clear audit trail of all the components included in the costs transferred, such as names of employees occupying the positions involved in the cost transfer, salaries and fringe benefits of the employees, allocation of services and supplies, directly identified services and supplies expenditures, and allocation of divisional and departmental indirect costs.

2.5 Frequency of Cost Transfers

Recurring cost transfers should be recorded on a monthly basis, unless the amount is immaterial to the department being billed, in which case the billing can be made quarterly.

2.6 Other Types of Cost Transfers

In addition to the preceding standard cost transfers, there are other, infrequently used transfers/adjustments. When cost transfers such as these are needed, they must be requested by a memo to the Auditor-Controller's General Ledger Unit. Such requests should fully explain the transaction.

2.6.1 Allocation of Shared Expenditure

Occasionally a department may be billed for charges which should be allocated to several departments. The costs belonging to other departments are charged to the appropriate expenditure object in the other departments, with an equal amount offset against the original department's expenditure object.

2.6.2 Sales of Supplies Between Departments

Occasionally a department may have an overstock of a supply item which another department may need. These supplies may be sold by charging the buying department and crediting the selling department's expenditure object.

2.6.3 Corrections

Occasionally a department may be incorrectly charged for an item. In order to correct the error, the proper department is charged and the original department's expenditure object is offset.

2.7 Cost Transfer Methodology

All cost transfer transactions are recorded on journal voucher forms. Cost transfers processed automatically through the job cost accounting system or other automated billing systems produce automated journal vouchers which automatically update the accounting system. Manually prepared cost transfers are posted to journal voucher forms by the billing department's staff and are submitted to the Auditor-Controller General Ledger unit for processing. See County Accounting Policy and Procedure No. 27, "Journal Voucher Preparation and Review" for details on preparing journal voucher forms (See Note below).

Note: CAP No. 27, " Journal Voucher Preparation and Review," has not yet been completed.

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Fiscal Year-End Expenditure and Revenue Accruals

SUBJECT:

FISCAL YEAR-END EXPENDITURE AND REVENUE ACCRUALS

NUMBER:

J.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS
GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 01/01

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions

2. PROCEDURES

2.1 Available Appropriations
2.2 Journal Voucher Accruals
2.3 Claims Accruals
2.4 Deposit Order Accruals
2.5 Payroll Accruals
2.6 Other Specific Accruals

EXHIBITS

Exhibit I - Example of an Accrual on a Journal Voucher

Exhibit II - Example of an Accrual Reversal on a Journal Voucher

SUBJECT:

FISCAL YEAR-END EXPENDITURE AND REVENUE ACCRUALS

NUMBER:

J.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS
GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 01/01

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Revenues, expenditures, and expenses of County funds for a given fiscal year must be recorded properly within that fiscal year. Therefore, it is sometimes necessary to accrue some revenues, expenditures, or expense transactions during the year-end closing process. It is the County's policy to accrue only transactions that individually equal or exceed $5,000.

1.1 Purpose

The purpose of this procedure is to establish guidelines for recording accruals at the end of each fiscal year in accordance with Generally Accepted Accounting Principles (GAAP) and federal, state and County program requirements.

1.2 Authority

1.2.1 State of California Government Code Sections 29120-29122 and 30200

Sections 29120-29122 prohibit the authorization of obligations that exceed appropriations.

Section 30200 authorizes the State Controller to prescribe uniform accounting principles for counties.

1.2.2 State of California Accounting Standards and Procedures for Counties

Sections 1.17, 1.18, and 2.27 define accrual and modified accrual bases for accounting and the timing of accrual transactions.

Sections 8.13, 8.14, and 8.15 define the types of transactions that are accrued.

Sections 8.31 and 8.32 define year-end revenue and expenditure accruals.

1.2.3 Governmental Accounting Standards Board

The Codification of Governmental Accounting and Financial Reporting Standards, Sections 1100, 1600, C50, C60, G60, L10, L20, P20, P70, and P80 prescribe GAAP for governments for revenue, expenditure, and expense accruals, with specific guidelines for transactions such as claims and judgments, compensated absences, grants, landfill closure and postclosure costs, leases, pension costs, property taxes, and proprietary fund accounting.

1.2.4 Board of Supervisors' Resolution No. 82-162

Resolution No. 82-162, dated February 2, 1982, authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors (Board).

1.3 Definitions

1.3.1 Accrual

A transaction to record revenues or expenditures/expenses in the accounting period to which they are attributable, although the related cash receipts or disbursements may not be recorded until the subsequent accounting period. Due to the magnitude of the amounts transacted by the County, accruals should only be made for transactions that individually equal or exceed $5,000.

Because cash transactions cannot be processed after June 30, revenue accruals are usually recorded by accounts receivable entries, while expenditure and expense accruals are usually recorded by liability entries. Accruals can be based on estimates or actual transactions.

1.3.2 Fiscal Year

The annual accounting period for the County is the fiscal year of July 1 through June 30. The month of June is referred to as Period 12. The accounting books for the County for the month of June are held open into July for additional June entries, and this is referred to as Period 13. Period 13 is divided into several scheduled intervals. At each interval, report updates are run (Point Runs). The Auditor-Controller General Ledger Unit schedules the intervals and specifies various types of transactions that are due by specified cutoff dates. Accrual transactions for the fiscal year are recorded after June 30 until the books are closed.

1.3.3 Governmental Funds

General, special revenue, capital projects and debt service funds. These funds use the modified accrual basis of accounting. (See Section 2.2.1.2.)

1.3.4 Proprietary Funds

Enterprise and internal service funds. These funds use the full accrual basis of accounting. (See Section 2.2.1.1.)

1.3.5 Revenue

In governmental funds, revenues are inflows of resources from external parties that do not have to be repaid. Revenues are booked or recognized when they are available and measurable.

In proprietary funds, revenues are inflows or other enhancements of assets or settlements of liabilities during an accounting period. Revenues are earned by delivering or producing goods, or by rendering services, and are recognized when they are earned.

Because cash cannot be booked after June 30, revenue is accrued using receivable accounts.

1.3.6 Expenditure/Expense

The term "expenditure" applies only to expendable trust and governmental funds. Expenditures are outflows of resources to external parties. Expenditures are booked or recognized when the liability is incurred.

The term "expense" applies only to proprietary funds. Expenses are outflows or other consumption of assets or incurrences of liabilities during an accounting period. Expenses are incurred in the process of delivering or producing goods, or of rendering services, and are booked or recognized when they are incurred.

Because cash cannot be booked after June 30, expenditures and expenses are accrued using liability accounts.

1.3.7 Encumbrance

An anticipated expenditure in the form of purchase orders, contracts, and other commitments that are chargeable to an appropriation and for which part of the appropriation is reserved. The appropriation remains encumbered until payment is made, or the obligation expires, or cancellation occurs, at which time some or all of the encumbrance is reversed. An encumbrance is not an expenditure or a liability but merely a reserve of appropriations. Expenditures and/or liabilities are recorded when, and if, goods are actually provided or services are actually rendered. For further detail on encumbrances, refer to County Accounting Procedure (CAP) No. A.3., Encumbrances.

Journal voucher accruals do not reduce encumbrances and therefore should not be used to record accrual entries for encumbered contract/purchase orders. Therefore, accruals of expenditures or expenses against encumbrances must be processed through the Auditor-Controller Claims Unit in order to reduce the encumbrance.

1.3.8 Appropriations

The authorization by the Board to make expenditures and to incur obligations for specific purposes, as provided for in the Board's adoption of the County Budget, and as changed thereafter by budget transfers and changes to the budget made by the Board.

1.3.9 Journal Voucher

Journal vouchers are the documents used to record year-end accruals. For further detail on journal vouchers, refer to CAP No. J.3., Journal Voucher Preparation and Review.

1.3.10 Budget Transfers

Budget transfers are the documents used to transfer appropriations from one expenditure object or revenue code to another within a fund/agency.

2. PROCEDURES

2.1 Available Appropriations

2.1.1 Appropriations for Expenditures

The budget established for expenditures/expenses (i.e. appropriations) should be sufficient to cover any purchases including accruals at year-end. Departments should continually monitor the sufficiency of their appropriations.

Appropriations control is also for the protection of the department/agency, since Government Code Section 29121 states that "...obligations incurred or paid in excess of the unencumbered balance of the amounts authorized in the budget appropriations are not a liability of the county or special district, but the official authorizing the obligation in an amount known by him to be in excess of the unencumbered balance of the appropriation against which it is drawn is liable therefor personally and upon his official bond."

At year-end, budget transfers requiring Board action must be submitted to the Board prior to the Board's last meeting in June. Budget transfers not requiring Board approval must be submitted to the Auditor-Controller General Ledger Unit by June 30. Transfers of appropriations from salaries and employee benefits require CEO/Budget Office approval. Budget transfers will be processed after June 30 only for appropriation deficit eliminations and will be coordinated by the Auditor-Controller General Ledger Unit and submitted to the Board.

Payment vouchers and/or checks will be held if they overdraw appropriations at the major object (also called "object category") account code level, at the land parcel/organization code level for land purchases, or at the project/organization code level for capital projects. General Ledger staff will request necessary budget transfers to cover deficits. Payments being held will be released when the appropriation deficit is resolved.

2.1.2 Appropriations for Encumbrances

Departments/agencies are responsible for ensuring that appropriations are available to enable contract/purchase orders to be encumbered at the end of the fiscal year. Agenda item transmittals for Board-approved contract encumbrances must be submitted by the deadline for the final meeting in June. If a budget transfer is necessary, it must be delivered to the Auditor-Controller General Ledger Unit by June 30.

2.2 Journal Voucher Accruals

2.2.1 Fund Classification for Accruals

2.2.1.1 Full Accrual Basis Funds

Under the full accrual basis, revenues are recognized when they are earned (the right-to-receive has occurred), and expenses are recognized when they are incurred. Proprietary funds and non-expendable trust funds record transactions on the full accrual basis.

2.2.1.2 Modified Accrual Basis Funds

Under the modified accrual basis, revenues are recognized when they are both measurable and available to finance expenditures of the current period. Expenditures are generally recognized when the related fund liability is incurred. The governmental funds and expendable trust funds record transactions on the modified accrual basis.

2.2.1.3 Cash Basis Funds

June revenues or expenditures are not accrued in cash basis funds. After June 30, changes are recorded in asset and liability accounts that occur in cash basis funds because of accruals recorded in full accrual or modified accrual funds. Pension trust, investment trust, and agency funds, including departmental trust funds, record transactions on a cash basis.

Pension trust funds are accrual basis funds, but the financial statements for the Retirement Fund are based on December 31 data. Investment trust and agency funds, including departmental trust funds, are custodial in nature and do not involve measurement of results of operations. Therefore, no accruals in June are necessary.

For financial reporting purposes, balances in these funds are adjusted to full or modified accrual basis, if necessary.

2.2.2 Expenditure/Expense Accruals

Accruals should be recorded for incurred expenditures/expenses for which outflows of cash or other assets will not occur until after June 30. To record such accruals, expenditures/expenses are charged, and liabilities are booked. At the beginning of the following fiscal year, one of two types of entries is recorded:

For accruals based on estimates, the expenditure/expense and liability entries are reversed. The actual payments are charged to the expenditure/expense account.

For accruals based on actual amounts, the accrual entries are not reversed. Cash is transferred and the liability account is reduced.

2.2.3 Revenue Accruals

To record earned but uncollected revenues, an account receivable is booked and revenue accounts are credited. At the beginning of the following fiscal year, one of two types of entries is recorded:

For accruals based on estimates, the account receivable and revenue entries are reversed. When the actual revenues are collected, they are credited to the revenue account.

For accruals based on actual amounts, the accrual entries are not reversed. The actual receipt of revenue is credited directly to the accounts receivable account.

2.2.4 Journal Voucher Information

The accrual journal voucher should include a description that references the subsequent journal voucher or deposit order that books the accrual reversal or the actual expenditure or receipt of cash. The accrual journal voucher and the subsequent reversing entry (if applicable) must be submitted together to the Auditor-Controller General Ledger Unit..

2.2.5 Cash Transfers

Cash transfers for June business can only be made through noon on the last working day of June. After that time, all of the usual cash entries on journal vouchers must be replaced with receivable/liability entries. (See attached JV examples, entries [2], [3], and [4] on Exhibits I and II.) The receivable/liability entries should not be made until after June 30.

2.2.6 Cash Transfers

Cash transfers for June business can only be made through noon on the last working day of June. After that time, all of the usual cash entries on journal vouchers must be replaced with receivable/liability entries. (See attached JV examples, entries [2], [3], and [4] on Exhibits I and II.) The receivable/liability entries should not be made until after June 30.

2.2.7 Journal Voucher Preparation and Submittal

Accrual journal vouchers should include a description that references the subsequent journal voucher or deposit order that books the accrual reversal or the actual expenditure or receipt of cash. The accrual journal voucher and the subsequent reversing entries must be submitted together to the Auditor-Controller General Ledger Unit.

Accruals recorded via journal voucher must include sufficient explanations and supporting schedules explaining the accruals.

Journal voucher expenditure accruals may not include any transactions for which encumbrances have already been recorded or for any transactions that are valued at less than $5,000.

The Auditor-Controller General Ledger Unit must receive all department/agency journal vouchers by noon on each established deadline set by the Auditor-Controller for each fiscal year.

Journal Vouchers submitted during July must be boldly identified as either June or July business. This identification should be at the top of the document near the space provided for the journal voucher number.

For further details on journal voucher procedures, refer to CAP No. J.3., Journal Voucher Preparation and Review.

2.3 Claims Accruals

2.3.1 Payment Voucher Accruals

Accounts payable liabilities in excess of $5,000 will be accrued by the Auditor-Controller Claims Unit. To be recorded as payment vouchers for a given fiscal year, the following documents must be received by the deadline that is established each fiscal year by the Claims Unit:

Receivers and partial receivers (must show actual date received)

Invoices (with approving signatures)

Claims for payment

Revolving fund (petty cash) replenishment requests

NOTE: All documents must have the proper expenditure coding, vendor name and contract/purchase order number. Documents must be identified as either June or July business.

2.3.2 Other Claims Accruals

Accruals of claims that will be paid by the Auditor-Controller Claims Unit must be processed by the Claims Unit to ensure that encumbrance entries are properly processed. Expenditure accruals are necessary when payments for current year obligations cannot be processed by the Claims Unit's deadline. Accruals may be based on actual charges or on estimates. Documents received within one or two working days of the deadline for payment voucher accruals may be accrued by the Claims Unit through the accrual process.

2.4 Deposit Order Accruals

Up through the cutoff date for Period 13, Point Run #2, July deposit orders must include a detailed description of the cash received and the actual date of the collections. The fiscal year of the collections must be indicated on each deposit order.

The word ACCRUED must be written next to items being accrued if a journal voucher is prepared to record accruals for deposit orders. If all items on the deposit order are being accrued, ALL ITEMS ACCRUED must be written. At a minimum, any individual line item on a deposit order of $5,000 or more should be accrued if it meets the criteria for accrual.

Correction memos for each fiscal year's invoices and deposit orders must be submitted to the Auditor-Controller Accounts Receivable Unit by the deadline it establishes. This allows time for processing the information through the accounts receivable system.

2.5 Payroll Accruals

Payroll expenditures are accrued for June workdays that are not paid by June 30. In July, accruals are reversed and actual expenditures for the entire pay period are recorded.

2.6 Other Specific Accruals

There are specific rules and procedures for certain revenue, expense, and expenditure accruals. Examples are claims and judgments, incurred but not reported claims, compensated absences, grants, landfill closure and postclosure costs, leases, pension costs, and property taxes. Any questions on these types of accruals should be directed to the manager of the Auditor-Controller General Ledger Unit.

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Journal Voucher Preparation and Review

SUBJECT:

JOURNAL VOUCHER PREPARATION AND REVIEW
NUMBER:

J.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS
GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 1/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions

2. ACCOUNTING PROCEDURES

2.1 Use of Journal Voucher Form
2.2 Preparation of Journal Voucher Form
2.3 Signature Authority
2.4 Assignment of Journal Voucher Numbers
2.5 Auditor-Controller Review of Journal Vouchers
2.6 Auditor-Controller Approval of Journal Vouchers Over $5,000,000
2.7 Deposit Order Corrections
2.8 Automated Journal Voucher Interface Transactions
2.9 Deadline for Submitting Journal Vouchers
2.10 Restrictions on Transactions Recorded in Certain Funds or Agencies
2.11 Disbursements of Cash
2.12 Treasurer-Tax Collector Investment Transactions
2.13 Corrections of Journal Vouchers or Checks
2.14 Auditor-Controller Only Transactions

EXHIBITS

Exhibit I - Journal Voucher Form

Exhibit II - Job Cost Journal Voucher Form

SUBJECT:

JOURNAL VOUCHER PREPARATION AND REVIEW
NUMBER:

J.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS
GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 1/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Many accounting transactions are recorded on Journal Vouchers. Journal Vouchers are prepared by Auditor-Controller accounting staff and by authorized individuals in various departments and agencies. Collectively, the Journal Vouchers serve as the General Journal for the County of Orange.

To ensure that transactions are recorded according to accounting principles, legal requirements, County policy, and the coding restrictions of the computerized financial information system, Journal Vouchers are reviewed by the General Ledger Unit of the County Auditor-Controller.

1.1 Purpose

The purpose of this procedure is to establish preparation and review guidelines and criteria for approving transactions recorded on Journal Vouchers.

1.2 Authority

Authority
Subject

Government Code Section 26881, and Board of Supervisors' Resolution No. 82-162 dated February 2, 1982
Auditor-Controller prescription of and supervision over accounting forms and methods

Accounting Standards and Procedures for Counties, Sections 3.04, 3.05, and 3.12
Journals, General Ledgers, and Journal Entries

1.3 Definitions

1.3.1 Journal Voucher

Journal Vouchers are documents used to record accounting adjustments, accruals, transfers, and other transactions not automatically recorded through the processing of source documents in the County accounting system. The controls described in this Procedure do not apply to automated interface transactions as described in detail in Section 2.8.

Other documents may also be used to record accounting transactions; for example, Deposit Orders are used to record cash receipts. See Exhibit I for an example of the Journal Voucher form. All PC-generated Journal Voucher forms must be in this basic format.

1.3.2 Cost Applied and Interfund Transactions

These are interdepartmental billings, including cost transfers, cost applied transactions, etc., as defined in County Accounting Procedure (CAP) No. J.1., Cost Applied and Interfund Transactions.

1.3.3 Transaction

A transaction is an event that causes a change in the assets, liabilities, fund balance, or retained earnings of a fund. Transactions are recorded as journal entries on Journal Vouchers.

1.3.4 Debit

A debit is an increase to assets or expenditures, or a decrease to liabilities, fund balance, retained earnings, or revenues. Debits are recorded in the left columns of Journal Vouchers.

1.3.5 Credit

A credit is an increase to liabilities, fund balance, retained earnings, or revenues, or a decrease to assets or expenditures. Credits are recorded in the right columns of Journal Vouchers.

1.3.6 Fund

A fund is a fiscal and accounting entity with a self-balancing set of accounts established for the purpose of carrying on specific activities, or attaining certain objectives, in accordance with specific regulations, restrictions, or limitations.

1.3.7 Agency

In the County accounting system, an agency is a designated subset of a fund. Most County departments or agencies use an assigned agency number within the County General Fund.

1.3.8 Operating Transfers Out

Legally authorized transfers of funds from a fund receiving revenue to another fund through which the resources will be expended. Operating transfers out are recorded in the 4800 through 4809 object codes, depending on the number of the fund to which the transfer is being made. Operating transfers out must be appropriated in the Board-approved budget, or a separate Board action is required to provide the necessary appropriations.

1.3.9 Residual Equity Transfers Out

Nonrecurring or nonroutine transfers of equity between funds. Residual equity transfers out are recorded in the 5000 through 5009 object codes, depending on the number of the fund to which the transfer is being made. Residual equity transfers out must be appropriated in the Board-approved budget or a separate Board action is required to provide the necessary appropriations.

2. PROCEDURES

2.1 Use of Journal Voucher Form

The Journal Voucher form is used to record charges from one fund or agency to other funds or agencies, to allocate revenues and expenditures from one fund or agency to other funds and agencies, to record operating and residual equity transfers from one fund to another fund, to allocate expenditures and revenues to different organizations and/or activities within a fund or agency, and to make corrections to other transactions.

2.2 Preparation of Journal Voucher Form

The Journal Voucher form must be filled out completely and conform to the following minimum requirements:

Description field is limited to 25 characters.

Agency No. of the preparing agency must be filled in.

Journal Voucher No. should be left blank and will be completed by the Auditor-Controller General Ledger Unit. (See Section 2.4 of this Procedure.)

All required account coding information must be filled in.

Cash entries must be posted to the columns labeled "For Cash (8010) Entries Only."

The total of debit amounts must equal the total of credit amounts.

A detailed description of the purpose of the Journal Voucher must be included in the "Explanation" section of the form.

The preparer must sign in the "Prepared By" section, date the Journal Voucher, and include his/her telephone number.

Indicate under the "CC:" section who should receive copies of the Journal Voucher.

Back-up documentation must be attached to the Journal Voucher to support the amounts included on the form. If the documentation is too voluminous, a reference must be included in the "Explanation" section indicating that back-up for the Journal Voucher is available at the preparing department and referencing the files containing the documentation.

The "Approved By" section must be signed by an authorized signer for the department or agency. (See Section 2.3 of this Procedure.)

It is the responsibility of the department/agency staff preparing and authorizing the Journal Voucher to insure that the transaction being recorded is:

Legal

Budgeted

Adequately supported by auditable documentation

2.3 Signature Authority

2.3.1 Authorized Signer

Each Journal Voucher must be signed in the "Approved By" section by a person included on the department's/agency's Authorized Signature List on file with the Auditor-Controller. The signature must appear on the Authorized Signature List for the Funds or Agencies with expenditure or cash reduction transactions on the Journal Voucher, with the exception of Journal Vouchers to record cost applied and interfund transactions. The signer must have specific authority to sign Journal Vouchers, be listed on the Authorized Signature List with authorization to sign in the absence of the Department Head, or be the Department Head. Journal Vouchers prepared for departments or agencies with agency accounting support from the Auditor-Controller must be signed by an authorized person from the accounting staff.

2.3.2 Cost Applieds/Interfund Billings

Some Journal Vouchers record cost applied transactions or interfund billings between agencies or funds. Funds or agencies that are billed on a journal voucher may be controlled by departments or agencies other than the department or agency preparing the Journal Voucher. A person authorized to sign for the billing department or agency recording the reimbursement must sign such Journal Vouchers. The General Ledger Manager shall review such transactions to determine whether they appear to be reasonable before approving the Journal Vouchers and submitting them for processing.

2.3.3 Form of Authorization

An authorized signature may appear in handwritten form or as initials adjacent to typed or machine-printed names. Only original documents will be processed. Photocopies will not be accepted. Journal Vouchers that lack authorized signatures in the correct form will be returned to the submitting department or agency.

2.4 Assignment of Journal Voucher Numbers

The Auditor-Controller General Ledger Unit assigns a Journal Voucher transaction number to each Journal Voucher received. The transaction number identifies the month of processing, the department or agency submitting the Journal Voucher, and the sequential position of the transaction in the month. For example, the fifth Journal Voucher submitted by the Auditor-Controller in October would bear the number JV 003 10-00005.

2.5 Auditor-Controller Review of Journal Vouchers

2.5.1 General Ledger Unit Responsibility

The Auditor-Controller General Ledger Unit Manager or other designated Deputy reviews and signs Journal Vouchers before the documents are submitted for processing.

2.5.2 Journal Voucher Requirements

Certain types of transactions or transactions in certain funds are subject to legal or policy restrictions. The Auditor-Controller shall withhold Journal Vouchers from processing if they violate the following guidelines:

Transactions must be logical and correct in form.

Debits and credits must be equal for the Journal Voucher as a whole and for each fund.

Transactions must be recorded with proper account coding. The account coding must be appropriate for the type of transaction being recorded.

The Journal Voucher form must be prepared in the proper form. For example, balance sheet accounts must be in the correct column.

Cash entries (8010) must be properly recorded, without Agency account coding, and in the appropriate columns.

Adequate descriptions of transactions including a detailed description of the purpose of the Journal Voucher must appear on all Journal Vouchers.

It is the responsibility of the department/agency staff preparing and authorizing the Journal Voucher to insure that the transaction being recorded is:

Legal

Budgeted

Adequately supported by auditable documentation

2.5.3 Large Dollar Amount Transactions

The Auditor-Controller reviews transactions of large dollar amounts to determine whether they create appropriations or cash deficits. Journal Vouchers that would create deficits are withheld until the preparing department or agency can make appropriate adjustments.

2.5.4 Department/Agency Account Monitoring

Auditor-Controller review of Journal Vouchers is not a substitute for departmental/agency monitoring of accounts. All departments and agencies are responsible for frequent inspection of ledgers to verify that no inappropriate transactions are recorded.

2.5.5 Interfund Billings

The Auditor-Controller reviews interfund billings for reasonableness. If a transaction appears to be unreasonable, the department being billed will be called for verification before the Journal Voucher is submitted for processing.

Interfund billings must be approved as part of the budget process, and agreed upon by both the department/agency being charged and the billing department/agency. Journal voucher charges in excess of arranged amounts should be submitted by the billing department/agency to the department/ agency being charged for review prior to transmittal to the Auditor-Controller for processing. Refer to CAP No. J.1., Cost Applied and Interfund Transactions.

2.5.6 Interfund Loans

The Auditor-Controller verifies that any Journal Vouchers recording interfund loans have been approved by the Board of Supervisors. Journal Vouchers to record loans without Board approval or in excess of approved amounts will be withheld from processing until Board approval is obtained.

2.5.7 Land and Structures and Improvements

Journal Vouchers to record expenditures for land or structures and improvements will not be processed without correct project identification.

2.5.7.1 Land Expenditures, Object 4100

Transactions with expenditures in Object 4100 must include an organization code (ORG) to identify the specific land project or parcel. Land ORGs begin with the letter "L." See CAP No. FA.2., Fixed Asset Expenditure Coding.

2.5.7.2 Buildings and Improvements, Object 4200

Transactions with expenditures in Object 4200 must include an ORG to identify the specific structure being built or purchased. Object 4200 ORGs for most departments or agencies begin with the letter "P." Entries to cost apply 4200 charges using the 4209 account, Buildings and Improvements Reimbursements, must charge the expenditure to Object 4200 in the fund or agency being billed. See CAP No. FA.2., Fixed Asset Expenditure Coding.

2.5.8 Fund Balance Unreserved Account 9990

Transactions involving the Fund Balance Unreserved Account 9990, are not permitted. The only exceptions are Board-approved changes to reserves and transactions in the 101 Overage Fund and 650 School Control Fund.

2.5.9 Operating Transfers and Residual Equity Transfers

The Auditor-Controller verifies that Board-approved appropriations are available for all transactions involving operating transfers out or residual equity transfers out.

2.5.10 Job Charge Correction Journal Vouchers

Special Journal Vouchers for job charge corrections cannot contain any cash transactions. Corrections involving multiple funds must be corrected on conventional Journal Voucher forms. See Exhibit II.

2.6 Auditor-Controller Approval of Journal Vouchers Over $5,000,000

2.6.1 Journal Vouchers Under $5,000,000

If the total of any debit or credit column of a manually prepared Journal Voucher is less than $5,000,000, the General Ledger Manager or other designated Deputy may sign the Journal Voucher after proper review and submit it for processing.

2.6.2 $5,000,000 to $25,000,000

If the total of any debit or credit column is $5,000,000 or above, up to a total of $24,999,999, the Journal Voucher must be

reviewed and initialed by the General Ledger Manager or other designated Deputy, and

signed by an Accountant/Auditor Manager I or above.

2.6.3 $25,000,000 or Above

If the total of any debit or credit column is $25,000,000 or above, the Journal Voucher must be

reviewed and initialed by the General Ledger Manager or other designated Deputy,

reviewed and initialed by an Accountant/Auditor Manager or above, and

reviewed and signed by a Division Chief, the Chief Deputy or the Auditor-Controller.

2.7 Deposit Order Corrections

Except for H&CD Accounting, corrections to Deposit Orders must be corrected by Journal Vouchers prepared by the Auditor-Controller/Accounts Receivable Unit. A department or agency that desires a Deposit Order correction sends a memo to the Supervisor of the Auditor-Controller/Accounts Receivable Unit referencing the date and number of the Deposit Order to be corrected and explaining the reason for the correction.

2.8 Automated Journal Voucher Interface Transactions

Some transactions are transmitted to the accounting system, and ultimately to the accounting ledgers, as automated interface transactions. The transaction data is entered into departmental computer systems by the preparers. This data is transferred into the central accounting system via computer tape input or other electronic transfers. No paper document is sent to General Ledger for review prior to entry into the system. A hard copy of the transactions is sent to General Ledger for filing after the transactions have been processed.

There are certain system controls to prevent fundamental errors in the automated transactions. However, transactions are not reviewed for available appropriations, cash, or other restrictions until after they are processed. Departments and agencies that process automated Journal Voucher transactions are responsible for insuring that the transactions are legal, budgeted, and adequately supported by auditable documentation.

2.9 Deadline for Submitting Journal Vouchers

The daily deadline for submitting Journal Vouchers is 12:00 noon. Journal Vouchers submitted to the Auditor-Controller/General Ledger Unit after 12:00 PM may not be submitted for processing until the following day.

2.10 Restrictions on Transactions Recorded in Certain Funds or Agencies

2.10.1 Professional Consultants Recovery Agency 018

Billings to 018 require approval by CEO/Public Finance.

2.10.2 Employees Retirement Fund 157

Transactions other than payroll transactions are not permitted. The Orange County Employees' Retirement System (OCERS) is separate from the County accounting system for non-payroll transactions. Bills for services are processed by sending invoices to OCERS.

2.10.3 Local Transportation Funds 184 and 187

Charges are not normally recorded against these funds. Journal Vouchers with such billings are reviewed by the Orange County Transportation Authority (OCTA), Auditor-Controller/Claims and Disbursing, and the Auditor-Controller before they are processed.

2.10.4 Victim/Witness Fund 266

Billings to the Victim/Witness Fund 266 should be sent to Superior Court for approval.

2.10.5 Agencies in the Trust Fund 300 Series

Withdrawals from the Trust Fund 300 series agencies can only be recorded by the authorized personnel from the controlling department or agency.

2.10.6 School Control Fund 650

Transactions affecting Fund 650, except for the monthly JV prepared from the Department of Education reconciliation, should be withheld until the Treasurer-Tax Collector has been notified. Only the Auditor-Controller and Treasurer-Tax Collector record transactions for Fund 650.

2.11 Disbursements of Cash

Generally, disbursements of cash from County funds to external entities or individuals must be recorded on checks, electronic funds transfers (EFTs) or wire transfers for which approval is subject to control and review by the Auditor-Controller Claims and Disbursing Section. Cash credit entries on Journal Vouchers are usually only recorded for interfund transfers, with the following exceptions:

Corrections of check issuances prepared by the General Ledger Unit cash reconciliation staff.

ZBA (zero balance account) distributions for self-insured programs. Board approval for such agreements is required by law. A copy of Board approval for each agreement is maintained in the General Ledger Manager's files.

School Control Fund 650 disbursements: Checks issued by the Department of Education are not processed through the County accounting system. The following Journal Voucher entries are recorded to adjust the cash balance in the County accounting system:

Monthly disbursements and receipts not posted in the County accounting system: The General Ledger Unit prepares this transaction based on the cash reconciliation report submitted by the Department of Education.

NMUSD "sweep" transactions: The Newport-Mesa Unified School District (NMUSD) disburses money from the Department of Education bank account. The Treasurer-Tax Collector prepares Journal Vouchers to record these disbursements, based on information provided by the bank.

Disbursements to school districts (wire transfers): The Treasurer-Tax Collector records Journal Vouchers for disbursements from the Department of Education bank account to various school districts. A signed copy of the school district authorization must be attached to the Journal Voucher.

2.12 Treasurer-Tax Collector Investment Transactions

Journal Vouchers from the Treasurer-Tax Collector involving account 8070, Specific Investments, must include attached "Income Summary" schedules showing the sale of investments or "Daily Investments" schedules showing the purchase of investments. The attached schedules should show the funds and dollar amounts for the sale or purchases of investments.

Journal Vouchers with 8070 transactions must display a statement that the transfers do not include any inter-fund sales. This statement must be signed or initialed on the face of the Journal Voucher.

2.13 Corrections of Journal Vouchers or Checks

If a Journal Voucher records a significant correction to a previous Journal Voucher or to a check, the person who signs as Deputy must add a cc to the General Ledger Accounting Supervisor. To provide an audit trail, the General Ledger Accounting Supervisor marks the original document with the corrected entries and the correcting Journal Voucher number. Significant corrections include changes to dollar amounts, funds, agencies, objects, revenue sources, and/or balance sheet accounts.

2.14 Auditor-Controller Only Transactions

Some Journal Vouchers contain transactions that are not entered into the Treasurer-Tax Collector system because they have already been recorded in the Treasurer-Tax Collector's system. Excluded transactions include:

Clearing fund entries for outstanding checks (e.g., special P, AP and WE Journal Vouchers)

Transactions to cancel "trust" checks from the Trust Fund 300 series agencies

School Control Fund 650 entries prepared from the monthly Department of Education reconciliation.

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Loose Document Page

Annual Report

Authorized Signature List

SUBJECT:

AUTHORIZED SIGNATURE LIST
NUMBER:

M.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS, AGENCIES, AND DISTRICTS

EFFECTIVE: 06/10/85

1. POLICY

Each County department/agency/district requiring disbursements shall maintain an updated list of authorized signatures for the purpose of verifying department/agency/district employee signatures placed on various documents sent to the Auditor-Controller.

1.1 Purpose

To insure that the action requested has been properly authorized.

1.2 Authority

Auditor-Controller Policy; Board of Supervisors Resolution No. 82-162, dated February 2, 1982.

1.3 Definitions

See Authorized Signature List form attached for documents covered by this policy.

2. ACCOUNTING PROCEDURES

2.1 The following information must be submitted to the Auditor-Controller on the attached form:

2.1.1 The name of the department, agency or district.

2.1.2 The names and signatures of employees authorized to sign documents. The name should be typed below the line with the employee's signature directly above.

2.1.3 The names and signatures of employees authorized to act in the absence of the head of the department/agency or district. Names and titles must be typed followed by the appropriate employee's signatures.

2.1.4 All fund budget units and trust fund budget units under the responsibility of the head of the department/agency or district that are subject to the list.

2.1.5 A check mark indicating whether the list is a "new" list which voids all previous lists; or an "additional" list adding additional names as authorized signatures. Only one box should be checked and an effective date is to be indicated.

2.2 The list must be signed by the head of the department, agency or district unless another employee has been otherwise authorized by the Board of Supervisors or district board.

2.3 In order to insure that unauthorized names are not added to the list, blank lines are to be lined through before the department/ agency head signs the form, as indicated on the attached sample list.

2.4 When signing the various documents, the employee's signature must appear on that document as it is displayed on the Authorized Signature List submitted to the Auditor-Controller.

2.5 Facsimile signatures on documents or papers filed with this office are acceptable, provided that the authorized signature list has both the personal written signature and the stamped signature of the individual authorized to sign. The responsibility for any misuse of a facsimile signature stamp is entirely that of the head of the related department, agency or district. As a matter of good internal control and protection, the use of such stamps should be limited. Further, internal procedures must be established to ensure that responsibility for their use in any given case be clearly identified.

2.6 Authorized signature lists are to be reviewed yearly by departments/agencies/districts and new lists prepared if substantial changes are required to existing lists.

2.7 Deletion of authorized signatures may be accomplished by submitting a memo stating the request and signed by either the head of the department, agency, or district, or a person authorized to act in the absence of the head of the department, agency, or district.

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Jury Duty & Witness Fees Earned by County Employees

SUBJECT:

JURY DUTY AND WITNESS FEES EARNED BY COUNTY EMPLOYEES
NUMBER:

M.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS, AGENCIES, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 4/30/79
REVISED: 4/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

All County employees are to repay to the County, compensation received for jury duty and witness fees, exclusive of mileage, when an employee has been called for jury duty or is answering a subpoena as a witness during the employee's regular scheduled working hours for which the employee is also paid their regular salary.

1.1 Purpose

To comply with provisions of the Personnel and Salary Resolution.

1.2 Authority

1.2.1 Personnel and Salary Resolution

Personnel and Salary Resolution, Article 8, Sections 6 and 7 explains the provisions of Jury Duty and Witness leave.

1.2.2 State of California Government Code Section 1230

Government Code Section 1230 allows the County to grant leaves of absence, with pay, to employees to appear as witnesses, except where the employee is a litigant, or to serve on a jury.

1.2.3 Board of Supervisors' Resolution No. 82-162

Board of Supervisors' Resolution No. 82-162 dated February 2, 1982 establishes the Auditor-Controller's authority and responsibilities.

2. ACCOUNTING PROCEDURES

2.1 Notification of Departments/Agencies

The employee shall notify the department/agency that he or she has been called for jury duty or to answer a subpoena as a witness.

2.2 Department/Agency Responsibility

The department/agency shall inform the employee that he or she is required to repay the related fees. The department/agency is also responsible for ensuring that these fees are repaid to the County. The department/agency should request that the employee provide a copy of the jury summons, jury duty certificate, or subpoena as proof of service.

2.3 Payroll Reporting

The department/agency shall report such absences on the payroll attendance report in the "Other" column as "JD" for jury duty and "LP" (Leave with Pay) for witness leave. If the department/agency uses timesheets, it shall report such absences in the regular codes column as either "JD" or "LP".

2.4 Repayment of Fees

When the employee receives payment for serving as a juror or as a witness, the fees, exclusive of mileage, must be remitted, either by mail or in person to the employee's department/agency for deposit with the County Treasurer. Checks must be made payable to the County of Orange and identified as being a remittance for juror or witness fees. The employee is entitled to keep any portion of the fee that relates to hours for which the employee did not receive his or her regular salary.

Jury duty and witness fees should be coded to the fund/agency from which the employee's salary is paid as revenue source code 7670, "Miscellaneous Revenue."

2.5 Deadline for Repayment

The employee shall repay these fees within 45 days after his or her related absence. If the employee refuses to pay, the department will invoice the employee in accordance with County Accounting Procedure # B.1., "Billing for Materials and Services on Auditor-Controller Invoices" The Auditor-Controller Accounts Receivable Section will take the necessary steps to attempt collection.

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Performance Guaranties and Negotiable Instruments

SUBJECT:

PERFORMANCE GUARANTIES AND NEGOTIABLE INSTRUMENTS
NUMBER:

M.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 5/1/86
REVISED: 2/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Performance guaranties and equivalent substituted legal instruments used to guarantee performance and all negotiable instruments in the possession of a department/agency/district as defined under Sections 1.3.1 and 1.3.4 of this policy shall be recorded in a trust fund. Specific information concerning these instruments shall be maintained by the department/agency/district in a subsidiary ledger. All other performance guaranties as defined in Section 1.3.3 should not be recorded in the General Ledger, as these instruments have no monetary value. Each department/agency/district shall provide the necessary security and control consistent with the below-listed procedures to safeguard these assets.

1.1 Purpose

To provide security, accountability, and central control for all performance guaranties and their equivalent substituted legal documents and all negotiable instruments received by the County.

1.2 Authority

Authority
Subject

Board of Supervisors' Resolution No. 82-162, dated February 2, 1982. Authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors.

1.3 Definitions

1.3.1 Performance Guaranty

A performance guaranty is any legal instrument given to the County for the purpose of assuring that a second party will perform as contractually agreed and/or for the purpose of offsetting any financial loss due to the second party's noncompliance with a contractual agreement. Examples of performance guaranties are letters of credit, savings passbooks or time certificates with the power of attorney, notes receivable or installment notes secured by deeds of trust. These performance guaranties must be recorded in the trust funds and in subsidiary ledgers. See Section 2.

1.3.2 Savings Passbook: Conditional Power of Attorney

A conditional power of attorney over a savings passbook should provide that a failure of the agreed-upon performance will give the County the right to negotiate the instrument for restitution purposes.

1.3.3 Other Types of Performance Guaranties

All other performance guaranties, for purposes of this policy, are a guaranty of faithful performance of a contract and protection for the County against loss due to the mobility or refusal of a contractor to perform his contract. Examples of performance guaranties are completion bonds, contract bonds, escrow agreements, indemnity agreements, indemnity bonds, and surety bonds. Some of these instruments, such as completion bonds, are not payable upon demand and require a court order to collect monies due the County. These documents, therefore, have no financial value. These types of performance guaranties are not recorded in trust funds, but a listing of these instruments should be maintained by the department and a periodic inventory of them conducted. See Section 3.

1.3.4 Negotiable Instruments

Negotiable instruments are written unconditional promises to pay in money a sum certain upon demand or at a particular future time. Examples of negotiable instruments are: promissory notes, drafts or bills of exchange, checks, and certificates of deposit. Negotiable instruments must be recorded in trust funds and subsidiary ledgers. See Section 2.

2. PROCEDURES FOR PERFORMANCE GUARANTIES AND NEGOTIABLE INSTRUMENTS THAT ARE RECORDED IN A TRUST FUND AS DEFINED UNDER SECTIONS 1.3.1 AND 1.3.4 OF POLICY

2.1 Accountability

2.1.1 Trust Fund / Written Procedures / Subsidiary Ledger / Inventory

All departments/agencies/districts maintaining guaranties and negotiable instruments must have a trust fund and written procedures regarding the handling and safeguarding of these instruments. A subsidiary ledger of these instruments must be maintained which balances to the trust fund balance. The responsibility for the receipt, maintenance, and disposition of the performance guaranties and negotiable instruments is to be fixed in a single person whenever possible. That is, each department/agency/district handling guaranties and negotiable instruments should designate one employee as being responsible for ensuring compliance with this policy and related procedures. On a monthly basis, each department/agency/district maintaining guaranties and negotiable instruments should reconcile these items to their respective ledgers and trust fund. An actual inventory of the instruments themselves should be taken at least semiannually. The Auditor-Controller should be advised in writing of any needed adjustments to the trust fund of the department/agency/district.

2.1.2 Board of Supervisors/County Counsel Approval

All performance guaranties and negotiable instruments shall be presented to the Board of Supervisors or their designated representative for acceptance or rejection and for the purpose of establishing the conditions necessary for the returning of the guaranty. The conditions for return should be clearly documented at the time of acceptance. County Counsel should review and approve all guaranties/negotiable instruments as to whether or not the terms used are adequate to make the necessary assignment. Once County Counsel has approved the form of a particular type of instrument, like instruments need not be submitted for approval in like situations.

2.1.3 Subsidiary Ledgers

All departments/agencies/districts having guaranties/negotiable instruments in their possession shall maintain a ledger of all such documents which includes the following information:

The date the guaranty/negotiable instrument was received.

The reasons or purpose for obtaining the guaranty/negotiable instrument.

The name and address of the person/entity from whom the guaranty/negotiable instrument was received.

A complete description of the guaranty/negotiable instrument including type, amount, issue date, maturity date, and reference numbers such as account number, note number, bank or surety company, or other pertinent descriptive information concerning the instrument.

The date the guaranty/negotiable instrument was returned to its depositor.

The expiration date if applicable.

The name of the person/entity to whom the guaranty/negotiable instrument was released and, if different from the depositor, an explanation including documentation of appropriate authority. Also, a signed receipt from the person/entity to whom the guaranty instrument was released must be obtained.

2.1.4 Trust Fund Coding

The value of all performance guaranties and negotiable instruments in the possession of the department/agency/ district and any financial transaction involving a guaranty/negotiable instrument is recorded by a journal voucher in the trust fund of the department/agency/ district. Performance guaranties and negotiable instruments are recorded to Balance Sheet Account Code 8080, "Certificates of Deposit/Security Deposits," and to Balance Sheet Account Code 9200, "Balance - Trust Funds."

2.1.5 Deposit of Cash and Checks

Cash and checks received for guaranty purposes shall be deposited in the County Treasury on a daily basis by each department/agency/district in their trust fund (xxx-9200 - "Monies Held for Others"). Deposits should be made in accordance with County Accounting Procedure No. 8, "Deposits," unless the Clerk of the Board of Supervisors is holding a guaranty/negotiable instrument prior to acceptance of a bid. Once a bid is accepted, cash or checks should be deposited as described above. If rejected, these assets should be returned by certified mail, return receipt requested, or in person upon presentation of proper identification and after obtaining a signed receipt.

2.2 Security

2.2.1 Locked Safe/Restricted Access

All departments/agencies/districts are to secure their guaranties and negotiable instruments in a locked safe with access restricted to a minimum number of authorized personnel.

2.2.2 Safe Deposit Box

Those departments/agencies/districts who are unable to provide adequate security shall immediately obtain a safe deposit box to store their performance guaranties and negotiable instruments. The safe deposit box acquisition should be coordinated through the Treasurer-Tax Collector's Office.

2.2.3 Instruments Held by County

Whenever possible, guaranty instruments should be held by the County rather than with a third party. For example, the practice of accepting the power of attorney over a savings passbook left at the savings institution is to be discouraged, and the County should retain the passbook with conditional power of attorney.

2.3 Release

2.3.1 Release Conditions

Performance guaranties/negotiable instruments shall be released according to the conditions established at the time of their acceptance.

2.3.2 Acceptance/Release by Board of Supervisors

If the performance guaranty/negotiable instrument has been formally accepted by the Board of Supervisors, then it must be released by formal action of the Board of Supervisors unless at the time of acceptance, the Board's original action delegates the authority for release to someone else or specifically states that the guaranty/negotiable instrument is to be released in some other manner.

2.3.3 Acceptance/Release by Board Designee

If the performance guaranty/negotiable instrument was originally accepted by the Board of Supervisors' designee, then the release should be authorized by this same designee within the limits of the specifically delegated authority.

3. PROCEDURES FOR PERFORMANCE GUARANTIES AND NEGOTIABLE INSTRUMENTS THAT ARE RECORDED IN A TRUST FUND AS DEFINED UNDER SECTIONS 1.3.1 AND 1.3.4 OF POLICY

3.1 Accountability/Written Procedures

All departments/agencies/districts with performance guaranties that have no monetary value shall have written procedures describing the receiving and handling of these guaranties which fixes the responsibility for verifying that required instruments are received and properly filed.

3.2 Listing

A listing of all performance guaranties that have no monetary value shall be maintained, and the listing shall include the following information:

The date the guaranty was received.

The name and address of the person/entity from whom the guaranty was received.

Contract name/ID number.

Time period that the guaranty is in effect.

The date the guaranty was returned to its depositor.

3.3 Inventory/Secure Restricted Access/Release

At least once each year these documents must be reviewed to determine that all instruments are on file and in effect, and that all instruments listed on the ledger are physically accounted for. These instruments should be placed in a secure location with access restricted to a minimum number of authorized personnel. The release of these performance guaranties shall be in accordance with the conditions established at the time of acceptance.

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Requirements of Elected or Appointed Officials Assuming or Leaving Office

SUBJECT:

REQUIREMENTS OF ELECTED OR APPOINTED OFFICIALS ASSUMING OR LEAVING OFFICE

NUMBER:

M.4.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS, AGENCIES, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 5/87
REVISED: 7/91, 5/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

When a change in County officers occurs, accountability for assets must be transferred from the outgoing officer to the incoming officer. These procedures are only to be followed when an officer responsible for assets leaves office and a new officer assumes office. These include instances where a department head, agency director, or elected official retires, resigns, is not reelected, or is replaced by the Board of Supervisors (Board). These procedures are optional when assets or programs are transferred between existing officers. (Both officers are responsible to see that the official County records are changed to reflect the transfer.)

1.1 Purpose

To assist elected or appointed officers in transferring accountability for assets from the outgoing officer to the incoming officer.

1.2 Authority

1.2.1 State of California Government Code Sections:

Government Code Section No.
Subject

1094 Prohibited Conflict of Interest

1360 - 1367 Oath of Office

29320 - 29330 Revolving Funds

24050 Completion of County Business

24200 Assuming Office

29370 - 29390.1 Cash Difference Fund

1.2.2 Board of Supervisors' Resolutions:

Board Resolution No.
Date Subject

85-1684 11-26-85
Revolving Funds

82-162 02-02-82 Auditor-Controller's Authority

93-1390 12-14-93 Fixed Assets

99-135 04-06-99 Cash Difference Funds

1.3 Definitions

1.3.1 Officer

"Officer of the County" includes any elective or appointed officer of the County, and any person in charge of any office, department, service, or institution of the County, or a division or branch thereof, and as enumerated in Section 24000 of the Government Code.

1.3.2 Statement of Assets Transferred Form

Form prepared and signed by the outgoing and incoming officers documenting the assets transferred between the two officers. See Attachment 1.

2. TRANSFERRING ASSETS

2.1 General

2.1.1 Responsibility for Changeover Procedures

Primary responsibility for effecting the changeover lies with the outgoing officer.

2.1.2 Notification to Auditor-Controller General Ledger Unit

When it is known that a change in County officers will occur, the outgoing officer should immediately notify the Auditor-Controller General Ledger Unit to ensure sufficient time for planning changeover procedures.

2.2 Revolving Fund

The revolving fund may either be discontinued by the outgoing officer, or transferred to the incoming officer, depending on circumstances as described below:

2.2.1 Discontinuing the Revolving Fund

The procedure for the discontinuance of the revolving fund will be followed whenever the outgoing officer's employment is terminated, or when the outgoing officer is unavailable or unwilling to sign the "Statement of Assets Transferred" form.

A revolving fund may be discontinued by written notice to the Director of the County Executive Office (CEO) Administrative Services (Director). An accounting of the fund, as of the date of the request for discontinuance by the outgoing officer, must be sent to the Auditor-Controller General Ledger Unit.

Any cash balance remaining must be deposited into the County Treasury as stipulated in Government Code Section 29330.

The Director will review, and if appropriate approve, the request to discontinue the fund and forward it to the Auditor-Controller General Ledger Unit.

The outgoing officer will submit a final claim for authorized expenditures to the Auditor-Controller Claims Section. The final claim will include written instructions informing the Auditor-Controller to offset these expenditures against the revolving fund balance recorded in the General Ledger. This offset, plus any remaining cash balance deposited into the County Treasury should equal the total authorized revolving fund.

2.2.2 Transferring the Revolving Fund

The procedure for transferring the revolving fund will be followed whenever the outgoing officer is no longer responsible for County assets, and the outgoing and incoming officers are both available and willing to sign the transfer request.

The transfer of the fund from one officer to another may be effected by forwarding a request signed by both officers to the Director, who will review it and forward it to the Auditor-Controller with his recommendations.

After receiving the Director's approval of the transfer request, the Auditor-Controller will note the transfer in the revolving cash fund records and a written confirmation of the transfer will be sent to each of the affected officers.

2.3 Cash Difference Fund

The cash difference fund may either be discontinued by the outgoing officer or transferred to the incoming officer, depending on circumstances as described below:

2.3.1 Discontinuing the Cash Difference Fund and Establishing a New Cash Difference Fund

The cash difference fund must be discontinued whenever an outgoing officer's employment is terminated or the outgoing officer is unavailable or unwilling to sign a "Statement of Assets Transferred Form." In such circumstances, requests to discontinue the old fund are submitted by the incoming or interim officer.

2.3.1.1 Discontinuing the Cash Difference Fund

The incoming or interim officer sends a written request to the Auditor-Controller General Ledger Unit to discontinue the cash difference fund. Upon receipt of the request, the Auditor-Controller directs the officer or designee to deposit any unused balance of the cash difference fund into the County treasury and to submit an accounting for the portion of the fund that was used. See County Accounting Procedure (CAP) No. C.2., "Cash Difference Fund," Section 2.4.

2.3.1.2 Establishing a New Cash Difference Fund

The interim or incoming officer sends a written request to the Auditor-Controller General Ledger Unit, stating the need for the fund and the amount requested. The Auditor-Controller reviews the request for County procedural and operating rules compliance. If the request is approved, the Auditor-Controller authorizes the issuance of a check establishing the fund. See Section 2.1.

2.3.2 Transferring the Cash Difference Fund

The cash difference fund will be transferred whenever a change in County officers occurs and the outgoing and incoming officers are both available and willing to sign the transfer request. The outgoing and incoming officers submit a written request to the Auditor-Controller General Ledger Unit to transfer the cash difference fund from the outgoing to the incoming officer. Both officers must sign the request. Upon receipt of the written transfer request, the Auditor-Controller notes the transfer in the cash difference fund records. A written confirmation of the transfer is sent to each of the affected officers. See CAP No. C.2., "Cash Difference Fund," Section 2.5.

2.4 Fixed Assets

The cash difference fund may either be discontinued by the outgoing officer or transferred to the incoming officer, depending on circumstances as described below:

2.4.1 Physical Inventory Required

A physical inventory of fixed assets is required only if it has been more than one year since the last departmental fixed asset inventory or there are still unresolved deficiencies in inventory procedures or controls from the department's previous fixed asset inventory. When a physical inventory is required, CAP No. FA.5., "Physical Inventory of Fixed Assets," will be followed. This inventory will change the department's/agency's regularly scheduled biennial physical inventory date.

2.4.2 Physical Inventory Not Required

When a physical inventory is not required, the outgoing officer should contact the Auditor-Controller General Ledger Unit and obtain an official fixed asset listing for the department/agency and a copy of the "Inventory of County Property" form (Inventory Form). See CAP No. FA.5., "Physical Inventory of Fixed Assets", for a copy of inventory form. The Inventory Form should be completed with an "as of" date that is the same as the actual date of the department/agency head changeover. The following should be attached to the Inventory Form:

The Auditor-Controller's official fixed asset listing for the department/agency.

A list of all asset activity (purchase, disposal, surplus) from the date of the official fixed asset listing to the date of the changeover.

After the Inventory Form has been completed, and all required supporting documentation is attached, it shall be signed by the outgoing and incoming officers. These procedures do not change the department's/agency's regularly scheduled biennial physical inventory date.

2.4.3 Physical Inventory Requested

In cases where a physical inventory is not required, an incoming officer may request that one be performed. This inventory will change the department's/agency's regularly scheduled biennial physical inventory date if CAP No. FA.5., "Physical Inventory of Fixed Assets," procedures are followed.

2.5 Statement of Assets Transferred Form

Complete and sign the "Statement of Assets Transferred" form for all General Ledger and unrecorded assets, except fixed assets and controlled equipment, transferred to the incoming officer. This form will be sent to the outgoing officer by the Auditor-Controller General Ledger Unit. Following are the types of items which must be on this form. See Attachment 1.

2.5.1 Revolving Funds

List the funds transferred from the outgoing officer to the incoming officer. This amount will be zero if the fund was discontinued rather than transferred.

2.5.2 Cash Difference Funds

List the cash difference funds transferred from the outgoing to the incoming officer. The amount will be zero if the fund was discontinued rather than transferred.

2.5.3 Cash on Hand

This should be the cash account balance for each fund administered by the officer as of the date of the changeover. Use the balance per the Auditor-Controller's General Ledger. If necessary, manually adjust the balance by adding/subtracting from the amount in the General Ledger, receipts/disbursements which have been received or disbursed between the date of the General Ledger and the date of the changeover.

2.5.3.1 Trust and Agency Funds

Include cash balances of all trust or agency funds. The 300-series funds fall within this category.

2.5.3.2 All Other Funds

Report cash balances of all funds not reported as trust or agency. The manager of the Auditor-Controller General Ledger unit can provide the classification of a particular fund.

2.5.4 Accounts Receivable

List all accounts receivable, regardless of whether they are recorded or are not recorded in the Auditor-Controller General Ledger. A separate line on the form is provided for each type of account receivable.

2.5.5 Performance Guarantees and Negotiable Instruments

List the amount of all performance guarantees with a financial value (letters of credit, savings passbooks or time certificates with the power of attorney, notes receivable or installment notes secured by deeds of trust); negotiable instruments (promissory notes, drafts or bills of exchange, checks, and certificates of deposit); and performance guarantees that are not payable upon demand and require a court order to collect monies (completion bonds, contract bonds, escrow agreements, indemnity agreements, indemnity bonds, and surety bonds) as of the date of the changeover.

2.5.6 Undeposited Cash Receipts

List the amount of cash receipts on hand on the changeover date that has not yet been deposited into the County Treasury.

2.5.7 Postal Deposits

List the amounts on deposit with the U.S. Postal Service for postage due and business reply and any postage meter balances as of the date of the changeover.

2.5.8 Bank Accounts (other than petty cash revolving funds)

List the amount of any bank time deposits, savings accounts, trust accounts, or checking accounts as of the date of the changeover, other than revolving funds already listed under Section 2.5.1.

2.5.9 Other Cash

List the amount of any other cash on hand on the day of the changeover that has not been included in any other category.

2.5.10 Supplies Inventory

List the Materials and Supplies Inventory balance as of the date of the changeover. Use the balance in the Auditor-Controller's General Ledger. If necessary, manually adjust the balance by adding/subtracting from the amount per the General Ledger receipts/disbursements which have been received or disbursed between the date of the General Ledger and the date of the changeover.

2.5.11 Other Assets

List all other assets such as cash in County treasury, interest receivable, investments with trustee, etc., as of the changeover date that are not included in another category.

After the "Statement of Assets Transferred" form has been completed, it should be signed by both the outgoing and incoming officers and forwarded to the Auditor-Controller General Ledger Unit. Upon review and acceptance of the completed "Statement of Assets Transferred" and "Inventory of County Property" forms, the Auditor-Controller General Ledger Unit will notify the outgoing and incoming officers in writing that the transfer of accountability is complete.

3. ADDITIONAL REQUIREMENTS

3.1 Legal Requirements

The outgoing and incoming officers should contact County Counsel for the legal requirements pertinent to leaving office or accepting the duties of the office.

3.2 Outgoing Officer

3.2.1 Travel Advance

Any outstanding travel advances must be repaid by direct payment to the Auditor-Controller Claims Section.

3.2.2 Reimbursement of Mileage and Other Expenses

For outgoing officers terminating County employment, final claims for reimbursement of mileage or other expenses should be filed with the Auditor-Controller as soon as possible, but no later than one year from the date the expense was incurred.

3.2.3 Completion of County Business

Complete any other County business prior to the expiration of the term of office.

3.3 Incoming Officer

3.3.1 Appointment Resolution

A certified copy of the Board appointment resolution must be filed with the Auditor-Controller Claims Section to establish the officer's position in the official books and records of the County.

3.3.2 Signature Authorization

3.3.2.1 Auditor-Controller

Before the Auditor-Controller can process department/agency claims, payroll and grants, a new signature authorization must be filed with the Auditor-Controller by the incoming officer. See CAP No. M.1., "Authorized Signature List," for detailed procedures.

3.3.2.2 CEO/Human Resources

Before the CEO/Human Resources Department can process payroll changes (e.g. merit increases, promotions, etc.) a new signature authorization list must be filed by the incoming officer. Contact the CEO/Human Resources Department for copies of the signature authorization form and procedures for filing the new list.

3.3.2.3 CEO/Purchasing

Before CEO/Purchasing or Deputy Purchasing Agents can process purchase requisitions and purchase documents, a new signature authorization list must be filed with CEO/Purchasing and the department/agencies Deputy Purchasing Agent by the incoming officer. Contact CEO/Purchasing for copies of the signature authorization form and procedures for filing a new list.

3.3.2.4 Bank

New signature cards must be filed with any bank where departments/agencies monies are maintained in a time deposit, savings account, trust account, revolving account, or checking account.

3.3.3 Certificate of Prohibited Conflict of Interest

Before the Auditor-Controller can approve payments submitted by departments/agencies, the incoming officer must file a Certificate of Prohibited Interest with the Auditor-Controller Claims Section See Attachment 2.

3.3.4 Official Bond

In order to update the County's blanket official bond, departments/agencies must notify CEO/Risk Management by memo of changes to departments/agencies officials. The memo should include names of officials leaving office and names of new officials assuming office.

3.3.5 Oath of Office

Unless otherwise provided, before any officer begins the duties of his/her office, he/she shall take the oath or affirmation set forth in Section 3 of Article XX of the Constitution of California.

3.3.6 Assuming Office

Elected County officers shall take office at 12 o'clock noon on the first Monday after the January 1st succeeding their election.

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Map of Cities of Orange County

Escheatment of Unclaimed Money

SUBJECT:

ESCHEATMENT OF UNCLAIMED MONEY
NUMBER:

R.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 1/1/89
Revised : 1/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Each head of a County agency, department, and/or district is responsible for money deposited in his/her trust fund(s) or otherwise in his/her custody. Accordingly, he/she must file by the following March 1 with the Treasurer-Tax Collector a report as of December 31 of each year of all such monies which have been held unclaimed for three or more years.

1.1 Purpose

To establish a policy and related procedures for reporting monies held by departments/ agencies/ districts which have been unclaimed for three or more years, for identifying which of such monies can be escheated to the County, and for transferring such escheated monies to the County General Fund.

1.2 Authority

State of California Government Code Sections 50050 through 50056.

1.3 Definitions

1.3.1 Escheatment

The term "escheatment" generally means the legal transfer to a government entity of property that has not been claimed by the legal owners. As used in Policy and Procedure Number 18, "escheatment" is the legal transfer to the County of unclaimed money as defined in Paragraph 1.3.2.

1.3.2 Unclaimed Money

Unclaimed money consists of funds which are not the property of the County but remain in the County treasury or in the custody of a County officer for three or more years without a claim being filed by the legal owner(s), except in the following situations:

The apparent legal owners of the money and their address, phone number, or other evidence of their whereabouts are known.

The money is held in deposit pending decision in a court case.

The money is covered by a special legal restriction of law, or is subject to a claim by another governmental agency. The money is to be retained beyond three years because of the provisions of Probate Code Section 7663. See Section 2.2 of this procedure.

The amount of an individual item is under $15 or the depositor's name is unknown. Such items can be transferred after one year, without publication. See Section 2.3.3 of this procedure.

1.3.3 Trust Fund

A trust fund is a fund used to hold assets for individuals, private organizations, or other governmental units.

1.3.4 Liability/Deposit Accounts; Trust Fund Accounts

Liability/deposit accounts are general ledger accounts 9100 through 9160.

9100 Condemnation Deposits - Trust Funds
9110 Customer Deposits
9120 Development Deposits
9130 Refundable Deposits
9140 Uncleared Specific Donations
9150 Liability for Earned Credits
9160 Liability for Relinquished Credits

Trust fund account balances are recorded in account 9200.

9200 Balance - Trust Funds

1.3.5 Officer

"Officer of the County," as defined in Government Code Section 29320, includes any elective or appointive officer of a county, superior court, or judicial district, and any person in charge of any office, department, service, or institution of the county, or a division or branch thereof and as enumerated in Section 24000 of the Government Code.

2. PROCEDURE

2.1 Request by Agencies/Departments/Districts:

By the end of each January, the Treasurer-Tax Collector shall distribute the Schedule of Accounts form and instructions to all affected departments/agencies/districts. Agencies/departments/districts shall complete a copy of the Schedule of Accounts form as required. (See sample form at end of these procedures.) The completed form shall be submitted to the Treasurer-Tax Collector by March 1.

2.2 Notification of Known Apparent Owners of Unclaimed Money

Agencies/departments/districts must make a reasonable effort to locate and notify owners of unclaimed money included on the Schedule of Accounts form. Before preparing this form the agency/department/district must notify apparent owners of unclaimed money held three or more years. If addresses of apparent owners are known, notification must be in writing, sent by certified mail, with return receipt requested. Any phone calls made to apparent owners must be documented to provide a record that adequate notification was made.

The period to claim money for deposits recorded pursuant to Probate Code Section 7663 can be extended beyond three years. Section 7663 deposits are recorded by the Public Administrator for estates without beneficiaries. The County can release such deposits to a blood relative of the deceased or a blood relative of the deceased's predeceased spouse. For infants or persons of unsound mind, the period to claim money is extended until one year from the date on which his or her disability ceases.

If the apparent owners state that they are unwilling or unable to claim the money, the money can then be listed as escheated on the Schedule of Accounts form. If the apparent owners wish to submit a claim for the money, normal department/agency payment procedures for the particular type of claim involved should be followed. If the money is not disbursed before December 31, it should be listed in the "Other Money Three or More Years Old" section of the Schedule of Accounts.

2.3 Preparation of Schedule of Accounts Form

2.3.1 General Instructions

Complete the original Schedule of Accounts form and make one copy. Submit the form by March 1 as follows:

Original to Treasurer-Tax Collector
One copy to department/agency file

Submit a separate form for each trust fund and/or each individual liability/deposit account. Complete each section of the form as described in the following paragraphs.

2.3.2 Unclaimed Money Three (3) or More Years Old - Escheat

In this section of the form, list unclaimed money held for three or more years for which the apparent owners have been properly notified and are unwilling or unable to claim the money. Do not list in this section money held on deposit pending decision in a court case, money covered by a special legal restriction or law, or money subject to a claim by another governmental agency.

Some unclaimed money may represent restitution collected on behalf of victims by the Probation Department. A mark should be placed in the "Victim Restitution" column to denote such funds.

2.3.3 Unclaimed Money - Less than $15 or Name of Depositor Unknown, and One (1) or More Years Old - Escheat

In this section of the form, list unclaimed money held for one or more years for which the individual items are less than fifteen ($15) dollars or for which the depositor's name is unknown. Do not list in this section money held on deposit pending decision in a court case, money covered by a special legal restriction or law, or money subject to a claim by another governmental agency.

Some unclaimed money may represent restitution collected on behalf of victims by the Probation Department. A mark should be placed in the "Victim Restitution" column to denote such funds.

2.3.4 Other Money Three (3) or More Years Old - Do Not Escheat

In this section of the form, list all other money held for three or more years, claimed or unclaimed, which is not listed in the escheated money section. Do not list in this section money held on deposit pending decision in a court case, money covered by a special legal restriction or law, or money subject to a claim by another governmental agency.

2.3.5 Total of All Other Money in Fund

In this section of the form, post the total of all other money in the trust fund or the liability/deposit account.

2.3.6 Grand Total

The "Grand Total" must equal the total trust fund balance as of December 31, or the total of the liability/deposit account as of December 31.

2.3.7 Signatures

The preparer of the form signs on the "Prepared By" line. The department/agency/district head signs on the "Trust Officer" line. By his or her signature, the department/ agency/ district head authorizes the Auditor-Controller, after action has been taken by the Treasurer-Tax Collector and the Board of Supervisors as described in Paragraphs 2.4 and 2.5, to transfer escheated money to the General Fund. The department/agency/district head also certifies that proper notice has been given to all known and apparent legal and beneficial owners of unclaimed money to be escheated whose whereabouts are known.

2.4 Escheated Money: Less Than $15 or Name of Depositor Unknown

Upon receipt of the Schedule of Accounts forms from the departments/ agencies/districts, the Treasurer-Tax Collector shall compile a list of escheated money for amounts of less than $15 or any amounts where the depositors' names are unknown from the Schedule of Accounts forms. The Treasurer-Tax Collector then shall request the Board of Supervisors to issue a resolution escheating such money and directing the Auditor-Controller to transfer it to the County General Fund. Upon receipt of a certified copy of the Board Resolution, The Auditor-Controller shall transfer the escheated money to the General Fund.

2.5 Escheated Money: $15 or More

2.5.1 Public Notice

Upon receipt of the Schedule of Accounts forms from the departments/agencies/districts, the Treasurer-Tax Collector shall issue a notice listing all escheated money amounts of $15 or more, to be published once a week for two successive weeks in a local newspaper with a countywide circulation and distribution. The notice shall state the amount of money, the name of the depositor, the fund in which it is held, and that the money will become property of the County of Orange on a designated date not less than forty-five days nor more than sixty days after the first publication of the notice.

2.5.2 Removal of Item from List

2.5.2.1 Procedure for Party of Interest to File Claim for Unclaimed Money.

Upon or prior to publication, a party of interest may file a claim with the Treasurer-Tax Collector which must include the claimant's name, address, amount of claim, the grounds on which the claim is founded, and any other information that may be required by the Treasurer-Tax Collector. The claim shall be filed before the date the unclaimed money becomes the property of the local agency as provided under Section 50051. Pursuant to Section 50056, the Treasurer-Tax Collector may delegate the responsibility for accepting or rejecting the claim and releasing the money to the department/agency/district that submitted the Schedule of Accounts form to which the claim applies.

The department/agency/district shall accept or reject that claim. If rejected, the department/agency/district shall notify the Treasurer-Tax Collector that the claim will not be honored. If accepted and notwithstanding the provisions of Section 50052, the department/agency/district may release, to the depositor of the unclaimed money or their heir, beneficiary, or duly appointed representative, unclaimed money if claimed prior to the date the money becomes the property of the local agency upon submitting proof satisfactory to the department/agency/district. The department/ agency/district consequently can direct the Auditor-Controller to issue a check for the amount of the accepted claim by way of a properly signed authorized claim. The department/ agency/district shall notify the Treasurer-Tax Collector that the amount of the claim should be removed from the monies to be escheated.

2.5.2.2 Court Action Upon Rejection of Claim by Treasurer-Tax Collector

If the claim is rejected by the Treasurer-Tax Collector, the party who submitted the claim may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within the county in which the notice is published, and serves a copy of the complaint and the summons issued thereon upon the Treasurer-Tax Collector. The copy of the complaint and summons shall be served within 30 days of receiving notice that the claim was rejected. The Treasurer-Tax Collector shall withhold the release of the portion of unclaimed money for which a court action has been filed as provided in this section until a decision is rendered by the court.

2.5.2.3 County Officer Request to Remove Item from List

If an officer or head of a department/agency/district uncovers a restriction applicable to an item or the published notice of escheated money, he or she must send a written request to the Treasurer-Tax Collector to remove it from the list of money to be escheated.

2.5.3 Board of Supervisors' Actions

After the date designated in the public notice has passed, the County Treasurer-Tax Collector shall request the Board of Supervisors to issue a Resolution escheating the money as listed and directing the Auditor-Controller to transfer it to the appropriate fund. In the case of money collected on behalf of victims and so identified by the Probation Department according to Section 2.3.2 or 2.3.3, above, the Auditor-Controller shall be directed to transfer the money to the Victim Restitution Fund. All other money shall be transferred to the County General Fund.

2.5.4 Transfer to General Fund or Victim Restitution Fund

Upon receipt of a certified copy of the Board Resolution, the Auditor-Controller shall transfer the escheated money to the County General Fund or to the Victim Restitution Fund. Copies of the journal voucher transferring the escheated money to the General Fund or to the Victim Restitution Fund shall be sent to all affected departments/ agencies/districts by the Auditor-Controller.

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Monetary & Property Gifts: Acceptance, Reporting, & Disbursement

SUBJECT:

MONETARY AND PROPERTY GIFTS: ACCEPTANCE, REPORTING AND DISBURSEMENT

NUMBER:

R.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 7/85
REVISED: 9/90, 12/93, 3/00

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

Agency and department heads have the authority to accept on behalf of the Board of Supervisors (Board) gifts, bequests and devises of money or property with a value not to exceed $10,000 per gift. Appropriations are required if a department/agency wishes to make an expenditure due to the receipt of monetary gifts by the County. Gifts in excess of $10,000 are to be reported directly to the Board for acceptance. For gifts, bequests and devises of $5,000 or more, but not exceeding $10,000, departments/agencies shall also notify each Board office via off-agenda letters of such gifts and donations immediately upon receipt. For gifts, bequests, and devises under $5,000, departments/agencies shall use their own discretion in deciding whether to advise the Board. The value of all donated property will be determined by the donor.

1.1 Purpose

To establish a procedure for the acceptance, reporting, depositing, and disbursement of monetary donations and a procedure for acceptance and reporting of property donations received by the County.

1.2 Authority

Authority
Subject

Government Code Section 25355
Acceptance of gifts by the Board

Government Code Section 25356
Treatment of specified and unspecified donations.

Government Code Section 29130
Making funds available for appropriation.

Internal Revenue Code Sec. 170(f)(8)(B)(i)
Requirements of the receipt given to the donor by the donee.

Internal Revenue Code Sec. 6050L
Disposal of donations within 2 years.

Internal Revenue Form 8283 Instructions
Donee acknowledgment

Board of Supervisors' Resolution
No. 93-1235 Delegation of authorization to accept gifts.

1.3 Definitions

1.3.1 Monetary Donations

Monetary donations include currency, checks, money orders, etc.

1.3.2 Property Donations

Property donations include fixed assets and controlled equipment as defined in County Accounting Procedures (CAP) No. FA.2., Fixed Asset Expenditure Coding, and No. FA.4., Fixed Assets--Equipment, and any other property of significant value.

1.3.3 Fair Market Value

Fair market value is the price at which property would change hands between a willing buyer and seller, neither having to buy or sell and both having reasonable knowledge of all the necessary facts.

2. PROCEDURES

2.1 Receipts

The recipient agency shall acknowledge the acceptance of a gift by giving the donor a receipt or a letter of acceptance.

2.1.1 Monetary Donation Receipt

Enter the amount of currency, check number, name of donor, and date of transaction on the uniform cash receipt form F850-58.2. Refer to CAP No. C.5., Handwritten Cash Receipts.

2.1.2 Property Donation Letter of Acceptance

Describe each gift of property on agency letterhead. Include the donor's name and the date the property was received.

2.2 Deposits

Monetary gifts for specified purposes shall be deposited to the appropriate fund/agency (budgeted fund/agency or trust fund) under Revenue Source Code 7670, "Miscellaneous Revenue" for budgeted funds/agencies, and Balance Sheet Account Code 9200, "Balance-Trust Funds" for unbudgeted trust and other special funds. Monetary gifts received for unspecified purposes should be deposited into the County General fund. Such gifts should be deposited in accordance with CAP No. C.4., Deposits.

2.3 Board Reports and Approval

2.3.1 Donations Over $10,000

A listing of monetary and property donations accepted by departments/ agencies which are each in excess of $10,000 must be submitted directly to the Board for approval on an Agenda Item Transmittal (AIT).

2.3.2 Donations of $5,000 to $10,000

For monetary donations of $5,000 or more but not exceeding $10,000, and for property donations valued at $5,000 or more but not exceeding $10,000, departments/agencies shall notify each Board office via an off-agenda letter of each such donation immediately upon receipt.

2.3.3 Donations Under $5,000

For monetary donations under $5,000 and property donations valued at under $5,000, departments/agencies shall use their own discretion in deciding whether to advise the Board of such donations.

2.4 Transfers from Trust Funds

Departments/agencies which deposit monetary donations into a trust fund because the donations are restricted to a specified purpose must transfer those donations periodically from the trust fund to Revenue Source Code 7670, "Miscellaneous Revenue," in the General Fund, or in other funds outside the General Fund as appropriate, in order to expend the monies for the specified purposes. The expenditures cannot be made directly out of the trust fund.

2.5 Appropriations of Unanticipated Revenue

If the department/agency does not have sufficient appropriations to cover the expenditures related to the donations, an AIT must be submitted to the Board identifying Revenue Source Code 7670, "Miscellaneous Revenue," to be increased and requesting that monies be appropriated in an equal amount according to Section 29130 of the Government Code. Pursuant to Section 29130, gifts received must be either in excess of anticipated amounts or not specifically set forth in the department/agency budget.

2.6 Property Donations

2.6.1 Reporting

Property donations with a minimum fair market value equal to or greater than the fixed asset amount per CAP No. FA.2., Fixed Asset Expenditure Coding, and department/agency-controlled equipment, must be reported to the Department/Agency Property Officer. Property donations that qualify as fixed assets must also be reported to the General Ledger Unit of the Auditor-Controller Department for inclusion into the agency's central fixed assets inventory records. Send a memo to the General Ledger Unit listing a description of the donated asset, the dollar value, and the date received. Attach copies of any relevant documentation such as a copy of the letter of acceptance given to the donor.

2.6.2 Value

The value of donated property is the responsibility of the donor. If the donor does not place a value on the property, or it is felt that the value has been overstated or understated by the donor, then the department/agency should make a reasonable estimate of its fair market value.

For all donations over $500, the donor is required to file Form 8283 with the Internal Revenue Service (IRS) along with written appraisals supporting the value of the donation. This form also requires the donee to acknowledge the donation and to receive a copy of the written appraisals (see Section 2.8).

If the value of donated property, such as land or structures and improvements, remains unknown, the department/agency may wish to hire an independent appraiser. The department/agency should have documentation showing that the value assigned to the asset is reasonable.

2.7 Records of Donations

Departments/Agencies shall maintain internal records of all gifts, bequests, and devises of money and property. No formal reports of donations are required except as noted in Section 2.3.

2.8 Completion of IRS Donee Acknowledgment

The department/agency receiving the donation is required to fill out Part IV of IRS Form 8283 upon receipt from the donor. This form is only required for donated property valued in excess of $500, and the department/agency should receive a copy of Section B of the form, which includes the appraisal summary for the property donated.

2.9 Disposal of Donated Items Within 2 Years

The department/agency is required to file IRS Form 8282 if donated property valued at more than $500 is disposed of within 2 years of initial donation, except for property which was consumed or distributed for charitable purposes. This form must be filed within 125 days after disposal and a copy must be sent to the donor of the property.

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Revenue Policy, Requirements & Responsibilities

SUBJECT:

REVENUE POLICY, REQUIREMENTS & RESPONSIBILITIES
NUMBER:

R.3.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL DEPARTMENTS, AGENCIES, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 10/79
12/83, 10/99

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

All County departments, agencies, commissions, and special districts shall generate revenue from non-property tax sources wherever possible; however, such proposed revenues shall be reasonably related to services provided. No fee or service charge may exceed the estimated amount required to provide the service for which the fee or charge is levied. All grants, joint-power agreements, lease agreements, and revenue producing contracts shall include provisions for full County cost recovery wherever possible unless other provisions have been approved by the County Executive Office, (CEO) in writing.

All fee schedules, except fees fixed by statute, shall be subject to approval by the Board of Supervisors.

Revenue estimates included in the County Budget for each revenue source shall be the amounts that are reasonably expected to be earned during a fiscal year.

1.1 Purpose

To establish a Countywide revenue policy and related procedure, including the requirements and responsibilities concerning non-property tax revenues that will aid in the effective management of such revenue.

1.2 Authority

Authority
Subject

Board of Supervisors Resolution No. 96-97 dated February 6, 1996
Authorized the elimination of the Revenue Proposal revenue Committee and development of a new revenue policy and procedure.

Board of Supervisors Resolution No. 78-1691 dated November 14, 1978
Approved revenue management responsibilities for the Auditor-Controller, CEO, and individual Departments.

Board of Supervisors Resolution No. 78-946 dated June 20, 1978
Authorized the Revenue Search Committee Report.

Government Code Section 29040
Directs County officials in charge of budget units to file estimates of available financing, financing requirements, and any other matter required by the Board.

Government Code Sections 66016-66018
Requires counties to hold an open public meeting prior to approving new or increased fees or service charges.

Public Resources Code Section 21080 (b)(8) Exempts new and increased fees from requirements of the California Environmental Quality Act, as long as a finding is included in the Board action specifically stating that the new or increased fees are only for meeting operating expenses.

1.3 Definitions

1.3.1 Non-Property Tax Revenues

Non-property tax revenues include revenues such as: licenses, permits, fines, fees, leases, rents, concessions, royalties, taxes-other than on property, state and federal aid, and service charges. They do not include property taxes.

1.3.2 Property Tax Revenues

Property tax revenues include ad valorem property taxes, special taxes, or an assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership, including a user fee or charge for a property-related service.

1.3.3 Full Cost Recovery

The concept that all departmental/agency and County General overhead costs are included in allocations of overhead to direct services so that fees, rates or charges include recovery of all County costs.

1.3.4 Automatic Fee Increase Factor

The percentage change factor represents the estimated increased costs which should be annually added to existing rates when it is impractical to conduct a complete cost study. The index factor should be based on information such as the consumer price index (CPI).

2. REQUIREMENTS

2.1 Frequency of Cost Recovery Rate Updates

All cost recovery revenue rates shall be updated at least once each year to reflect current costs. When the cost associated with making this annual determination appears to be excessive, with the approval of CEO and the Auditor-Controller, a complete update shall be made no later than every third year.

2.2 Automatic Fee Increase Factors

For non-property tax revenue rates updated other than annually, an "Automatic Fee Increase Factor" shall be adopted at the same time the rate is established. The Auditor-Controller will provide the necessary price index factor to departments, agencies, commissions, or special districts, upon request.

3. RESPONSIBILITIES

3.1 Departments, Agencies, Commissions, and Special Districts

Each department, agency, commission, and special district is responsible for the management of its revenue sources. This includes:

3.1.1 Coding

Accurate coding of revenue deposits.

3.1.2 Invoices

Prompt submission of invoices requesting payments and reimbursements.

3.1.3 Revenue Projections

Periodic projections of year-end revenue as requested by the Auditor-Controller with explanation of significant variances (as defined by Auditor-Controller) from budgeted revenue.

3.1.4 Revenue Budgets

Accurate budgeting of revenues for budget purposes and provision of explanations of significant changes (as defined by Auditor-Controller) from prior years.

3.1.5 Full Cost Recovery

Updating of existing revenue rates to ensure full cost recovery, with the assistance of the Auditor-Controller, consistent with Board of Supervisor's policies.

3.1.6 Revenue Alternatives

Examining different revenue alternatives and making specific recommendations for consideration by the Board of Supervisors.

3.1.7 Revenue Data

Providing revenue data requested by the Auditor-Controller for use in fulfilling its responsibilities.

3.1.8 Revenue Monitoring

Monitoring receipt of revenues compared to budget, determining reasons for revenue shortfalls, and taking corrective action to maximize revenues.

3.2 Auditor-Controller

Responsibilities of the staff of the Auditor-Controller Department include:

3.2.1 Revenue and Budget

Monitoring and reviewing actual revenue. Monitoring fee revisions implemented by departments/agencies. Reviewing revenue estimates of departments, agencies, commissions, and special districts for reasonableness, consistency, and accuracy for inclusion in the Proposed and Final Budgets.

3.2.2 Collections

Recording invoices and collecting revenue, including collecting delinquent accounts receivable referred by departments and agencies.

3.2.3 Cost Studies

Preparing the Countywide Cost Allocation Plan (CWCAP) which provides the basis for distributing County General overhead. Calculating various cost recovery fees and charges. Performing cost studies for updating certain fees and billing rates.

3.2.4 Financial Reporting/Mandated Costs/Grants

Coordinating State-mandated cost programs and assisting departments in filing reimbursement claims. Reviewing and pre-auditing grants requiring Auditor-Controller oversight. Assisting departments in complying with grant accounting requirements.

3.3 County Executive Office

The County Executive Office shall provide budgetary and program coordination to assist County departments, agencies, commissions, and special districts in meeting their revenue responsibilities including:

3.3.1 Revenue Policies

Examining revenue policies of departments, agencies, commissions, and special districts for compliance with budgetary requirements, full cost recovery, and other Board of Supervisors' policies.

3.3.2 Budgetary Impact

Reviewing the budgetary impact of revenue estimates and budget requests of departments/agencies for consolidation into the County Budget.

3.3.3 Major Revenue Policy Items

Reporting on the County Budget to the Board of Supervisors, together with identification of and recommendations on any major revenue policy items.

3.3.4 Revenue Issues

Assisting in the coordination of fees, service charges, and cost applications between departments, agencies, commissions, and special districts.

3.3.5 Legislation

Monitoring all state and federal legislation which significantly affects County revenue. Coordinating with the affected County office and assisting its staff with the proposed, implemented, revised, or rescinded legislative action.

3.4 Clerk of the Board

The Clerk of the Board shall assist County departments, agencies, commissions, and special districts in meeting the notice requirements for new and increased services fees, which are to be approved by the Board of Supervisors.

Departments/Agencies must contact the Clerk of the Board to determine notice requirements and format. Specific notice requirements are dependent on what government code section applies.

3.5 Checklist for New or Revised Fees

3.5.1 Fee Checklist Form

All new and revised departmental/agency fees (except those listed in 3.5.3) presented to the Board of Supervisors on Agenda Item Transmittals (AIT) must be accompanied by a completed checklistsee attached copy of "Fee Checklist For ASR Submission"

3.5.2 Auditor-Controller and CEO Review

The Auditor-Controller and the CEO will perform a limited review to determine that the checklist is signed off and that the data and justification contained in the AIT appear reasonable.

3.5.3 Exceptions to Fee Checklist

A completed fee checklist form is not required for the following types of fees or revenues:

Fees established by state statute

Fees requiring legislative changes

Grant applications

Contracts with the State

Contracts with the Federal government

Leases and franchises

Mandated cost claims

4. LEGAL REQUIREMENTS

4.1 Detailed Cost and Revenue Data

AIT for new fees and fee increases must contain detailed information concerning the costs to be covered by the fee and the expected amount of revenue to be generated (Cal. Constitution, Article XIIIA, Section 4; Mills v. County of Trinity (1980) 108 Cal. App. 3d 656; Public Resources Code Section 21080 (b) (8) and Government Code Section 66016). This information must be included on the Fee Checklist with supporting detail.

4.2 Public Hearing Prior to Adoption

Government Code Section 66018 requires that at least one open and noticed public hearing, at which oral or written presentations can be made, must be held by the Board of Supervisors before adoption or modification of fees is made, except for fees covered by other specific statutory notice requirements. Notice of the hearing and details of the cost and revenue data must be published at least 10 days prior to the Board meeting

4.3 Compliance with CEQA

Each AIT for new fees or increases in fees must contain a statement that the item is exempt from compliance with the California Environmental Quality Act (CEQA) under Public Resources Code Section 21080 (b) (8), which specifically exempts from CEQA the establishment or modification of rates, charges, or fees which are for the purpose of covering applicable expenditures. The AIT must contain a written finding in accordance with Public Resources Code Section 21080 (b) (8) that an exemption from CEQA is claimed, setting forth with specificity the basis for the claim of exemption.

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Development of Financial Computer Systems

SUBJECT:

DEVELOPMENT OF FINANCIAL COMPUTER SYSTEMS
NUMBER:

S.1.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 02/05

1. POLICY

At the beginning of a financial information system development, the owner of the system (County department) is required to (1) notify the Auditor-Controller and Internal Audit Department and (2) ensure adequate internal controls are present in the system.

1.1 Purpose

1.1.1 Notifications
To prescribe the appropriate notifications when implementing a financial information system.

1.1.2 Internal Controls
To designate the responsibility for ensuring financial information systems include appropriate internal controls.

1.2 Authority

Board of Supervisor's Resolutions No. 82-162, dated February 2, 1982, and 85-337, dated March 12, 1985.

1.3 Definitions

1.3.1 Development
Creation of, purchase of, implementation of, substantial modification or changes to, or upgrade of a computer system.

1.3.2 Financial Information System
Any computer system which includes but is not necessarily limited to the recording and processing of fines, fees, invoices, collections, receivables, cost applications and other revenue or expenses.

1.3.3 Internal Controls
A process, effected by the management and other personnel of a department, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

Safeguarding of assets.

Effectiveness and efficiency of operations.

Reliability of financial reporting.

Compliance with applicable laws, regulations, and contracts.

Internal controls should assist in ensuring that accurate data is produced, sensitive information is protected, the system is available and maintainable, and all operations are performed as directed by management.

1.3.4 Notification
A formal memo as prescribed, signed by the department head.

1.4 Forms

1.4.1 Required Memo for Notification of Financial System Development Projects. See (Exhibit I)

2. PROCEDURES

2.1 Notification

Departments are required to notify the Auditor-Controller and the Internal Audit Department during the planning phase (at the beginning of the system development lifecycle) for a new or upgraded financial information system. First, the department will determine with the Auditor-Controller whether the new system or upgrade will interface with any of the Auditor-Controller's systems. Then, the department will send written notification as follows:

2.1.1 Financial Systems that DO Interface with any Auditor-Controller System
The department must: (1) contact the Auditor-Controller's Information Technology Division to help coordinate system requirements, design specifications and testing, and (2) notify the Internal Audit Department in writing, providing a brief description of the system to be implemented or upgraded including the project's scope and objectives, preliminary cost estimates, projected timelines, and internal control responsibility.

2.1.2 Financial Systems that DO NOT Interface with any Auditor-Controller System
The department must notify the Internal Audit Department in writing, providing a brief description of the system to be implemented or upgraded including the project's scope and objectives, preliminary cost estimates, projected timelines, and internal control responsibility.

2.1.3 Internal Audit Department Review
Upon notification from the Department, the Internal Audit Department will determine whether or not to review the new system or upgrade. Available audit resources and technical expertise will be considered. The Internal Audit Department will notify the department in writing whether or not a review will be performed. The review could include an on-site review of the system or a desk review of pertinent documents. After the Internal Audit Department's review is completed, they will issue a letter to the department describing the results of their review.

2.2 Controls

2.2.1 Departmental Responsibility for System Contols
Neither the Internal Audit Department or the Auditor-Controller have the resources or charter to provide project management or ensure all necessary controls are designed and embedded in the new system or upgrade.
The responsibility for designing and ensuring a financial information system has appropriate internal controls and that such controls are properly maintained, rests solely with the management of the department responsible for the financial information system. Internal controls for a financial information system should address, at a minimum, the following areas:

Information Security - The financial information system should ensure the logical use of I/T resources is restricted by adequate identification, authentication, and access controls that link users and resources with access rules.

Audit Trails - The financial information system should be designed so that documentation exists to follow a transaction from its initiation to its conclusion (and vice versa), as well as identify what changes have been made, when, and by whom.

Segregation of Duties - The financial information should have system controls that prevent the same user from authorizing, processing, recording/inputting, or reviewing/verifying/reconciling a transaction.

Documentation - The financial information system should include user procedure manuals, operations manuals, and training materials.

2.2.2 Internal Control Information Sources
Management should consider consulting professional/authoritative internal control sources for guidance, including:

County of Orange Accounting Manual Procedure S-2, Internal Control Systems

County of Orange Internal Audit Department

United States General Accounting Office (GAO) and related Financial Information Systems Control Audit Manual (FISCAM)

Information System Audit and Control Association (ISACA) and related Control Objectives for Business and Related Information Technology (CobIT)

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Internal Control Systems

SUBJECT:

INTERNAL CONTROL SYSTEMS
NUMBER:

S.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 01/86
REVISED: 09/2000

signed
_________________________________
David E. Sundstrom, Auditor-Controller

TABLE OF CONTENTS

1. POLICY

1.1 Purpose
1.2 Authority
1.3 Definitions

2. COMPONENTS OF INTERNAL CONTROL

2.1 Control Environment
2.2 Risk Assessment
2.3 Control Activities
2.4 Information and Communication
2.5 Monitoring

3. STANDARDS OF INTERNAL CONTROLS

3.1 Segregation of Duties
3.2 Access to Assets
3.3 Authorization, Execution, and Recording of Transactions
3.4 Documentation of System
3.5 Integrity and Competent Personnel
3.6 Supervision
3.7 Monitoring Controls
3.8 Reasonable Assurance
3.9 Supportive Attitude
3.10 Control Objectives

4. RESPONSIBILITIES OF DEPARTMENTS/AGENCIES AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

4.1 Establish and Maintain a Systems of Internal Control
4.2 Determine that the System is Functioning as Prescribed and is Modified, As Appropriate, for Changes in Conditions.
4.3 Document and Communicate the System of Internal Control to All Employees.

5. RESPONSIBILITIES OF THE INTERNAL AUDIT DEPARTMENT

5.1 Periodic Reviews
5.2 Written Reports
5.3 Follow-up Audits

6. RESPONSIBILITIES OF THE AUDITOR-CONTROLLER DEPARTMENT

6.1 Policies
6.2 Procedures
6.3 Systems

SUBJECT:

INTERNAL CONTROL SYSTEMS
NUMBER:

S.2.

DEPARTMENTS & DISTRICTS AFFECTED:

ALL AGENCIES, DEPARTMENTS, AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

EFFECTIVE: 01/86
REVISED: 09/2000

signed
_________________________________
David E. Sundstrom, Auditor-Controller

1. POLICY

All County departments/agencies shall maintain effective internal control systems as an integral part of their management practices. This is because management has primary responsibility for establishing and maintaining the internal control system. All levels of management must be involved in assessing and strengthening internal controls. Effective internal control systems should provide management with reasonable, but not absolute, assurance that assets are safeguarded from unauthorized access, use or disposition; transactions are executed in accordance with management's authorizations; financial and statistical records and reports are reliable; applicable laws, regulations and policies are adhered to; and resources are efficiently and effectively managed.

Control systems shall be continuously evaluated and weaknesses, when detected, must be promptly corrected. New programs shall be designed to incorporate effective systems of internal control.

1.1 Purpose

To prescribe policies and standards to be followed by departments/agencies in establishing and maintaining internal control systems in their operations and administrative activities.

1.2 Authority

1.2.1 Committee of Sponsoring Organizations of the Treadway Commissions(COSO)

Internal control-integrated framework dated February 1992, which set criteria for evaluating an entity's internal control structure.

1.2.2 Board of Supervisors' Resolution No. 82-162, dated February 2, 1982

Authorizes the Auditor-Controller to prescribe the accounting policies for all offices, departments, and institutions under the control of the Board of Supervisors.

1.2.3 Board of Supervisors' Resolution No. 85-337, dated March 12, 1985

Establishes that all County departments/agencies maintain effective internal control systems, as an integral part of their management practices. Also, establishes that all levels of management shall be involved in evaluating control systems on an on-going basis and, when detected, ensuring weaknesses are promptly corrected. (Responsibility for periodic reviews of control systems now belongs to the Internal Audit Department, rather than the Auditor-Controller Department, per Board Resolution No. 95-271.)

1.2.4 Board of Supervisors' Resolution No. 95-271, dated April 25, 1995

Establishes the Internal Audit Department as independent from the Auditor-Controller Department, and authorizes the Internal Audit Department to perform the Auditor-Controller's legally required audits, if requested by the Auditor-Controller.

1.3 Definitions

1.3.1 Internal Control

A process - effected by an entity's board of supervisors, management, and other personnel - designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

Effectiveness and efficiency of operations

Reliability of financial reporting

Compliance with applicable laws and regulations

1.3.2 Standards of Internal Controls

Elements of a satisfactory system of internal controls. (See Section 3 for specific standards.)

1.3.3 Documentation of Internal Controls

Any material used to describe the internal control system, which communicates responsibilities and authorities and serves as a reference for persons reviewing the internal controls and their function. Such material can include written policies, organization charts, procedural write-ups, manuals, memoranda, flow-charts, software, and related written materials.

2. COMPONENTS OF INTERNAL CONTROL

Internal control consists of five interrelated components, which are control environment, risk assessment, control activities, information and communication, and monitoring.

2.1 Control Environment

Sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure. Control environment encompasses the following factors: integrity and ethical values, commitment to competence, board of supervisors or audit committee participation, management's philosophy and operating style, organizational structure, assignment of authority and responsibility, and human resource policies and practices.

2.2 Risk Assessment

The entity's identification and analysis of relevant risks in regards to the achievement of its objectives and to form a basis for determining how the risks should be managed. Risks can arise or change due to circumstances such as the following: changes in operating environment, new personnel, new or revamped information systems, rapid growth, new technology, new activities, restructuring, or changing accounting pronouncements.

2.3 Control Activities

The policies and procedures that help ensure management that necessary actions are taken to address risks to achieve the entity's objectives, which include:

Performance Reviews - Comparisons and analysis of actual performance versus budgets, or program objectives to actual outcomes.

Information Processing - Controls to check accuracy, completeness, and authorization of transactions, which include computer system general controls and application controls.

Physical Controls - Activities encompassing the physical security of assets, including adequate safeguards such as secured facilities; security over access to assets and records; security management over information systems (e.g. protection against computer viruses and "hacking"); and periodic counting and comparison with amounts shown on control records.

Segregation of Duties - Assigning different people the responsibilities of authorizing transactions, recording transactions, and maintaining custody of assets with the intent to reduce the opportunities to allow any person to be in a position to both perpetrate and conceal errors or irregularities.

2.4 Information and Communication

The identification, capture, and exchange of information in a form and time frame that enable people to carry out their responsibilities.

Information - Includes the accounting system, which consists of the methods and records established to record, process, summarize and report transactions and to maintain accountability for the related assets, liabilities, and equity (funds). Information systems produce reports containing operational, financial, and compliance-related information that makes it possible to run and control an organization. An information system encompasses methods and records that

Identify and record all valid transactions.

Describe timely and sufficiently detailed transactions to permit
proper classification for financial reporting.

Measure the value of transactions to permit recording their proper
financial value in the financial statements.

Determine the time period in which transactions occurred to permit
recording of transactions in the proper accounting period.

Present properly the transactions and related disclosures in the
financial statements.

Communication - Involves providing an understanding of individual roles and responsibilities pertaining to internal control over financial reporting. Communication takes such forms as policy manuals, accounting and financial reporting manuals, memoranda, oral communication, and management actions.

2.5 Monitoring

A process that assesses the quality of internal control performance over time. It involves assessing the design and operation of controls on a timely basis and taking necessary corrective actions. This process is accomplished through ongoing monitoring activities of internal controls and separate evaluations of internal controls, or a combination of the two. Ongoing monitoring activities should be built into the normal recurring activities of an entity and should include regular management and supervisory duties. Internal auditors or personnel performing similar functions contribute to the monitoring of an entity's activities through separate evaluations. However, the entity's management is ultimately responsible for effectively monitoring controls.

3. STANDARDS OF INTERNAL CONTROLS

A satisfactory system of internal control shall include, but not be limited to, the following standards:

3.1 Segregation of Duties

A plan of organization that provides segregation of duties appropriate for proper safeguarding of County assets. Key duties such as authorizing, approving or recording transactions, issuing or receiving assets, making payments, and reviewing or auditing shall be assigned to separate individuals to minimize the risk of loss. A satisfactory internal control system depends largely on the elimination of opportunities to perpetrate and then conceal errors or irregularities. This in turn depends on the assignment of work in such a fashion that no one individual controls all phases of an activity or transaction.

3.2 Access to Assets

Access to County assets should be limited to authorized personnel who require these assets in the performance of their assigned duties. Access includes both direct physical access and indirect access through the preparation or processing of documents that authorize the use or disposition of resources.

3.3 Authorization, Execution, and Recording of Transactions

A system of authorization and record-keeping procedures is needed to provide effective accounting control over assets, liabilities, revenues, and expenditures. Independent evidence shall be maintained to document that authorizations are issued by persons acting within the scope of their authority and that transactions conform with the terms of the authorizations. Documentation shall provide an adequate audit trail. Transactions shall be accurate, timely, properly recorded, and properly classified. Computer system controls should be utilized to safeguard records and preserve data integrity.

3.4 Documentation of System

All departments/agencies should have an established system of policies and procedures to be followed in the performance of duties and functions. Such a system shall include, but not be limited to, documentation of internal controls, accountability for resources and recording of financial transactions, and such documentation shall be communicated and made available to all employees and auditors.

3.5 Integrity and Competent Personnel

Key personnel should have high standards of integrity, and be competent through education, training, or experience to accomplish their assigned duties.

3.6 Supervision

Qualified and continuous supervision shall be provided to assure that approved procedures are followed and are operating as intended. Lines of personal responsibility and accountability shall be clear. Supervision should be competent and continuing so as to ensure the achievement of internal control objectives.

3.7 Monitoring Controls

An effective system of internal review by both the department/agency and the Internal Audit Department should be established. Managers should take action when control deviations requiring action are noted.

3.8 Reasonable Assurance

Internal control systems shall provide reasonable, but not absolute, assurance that the internal control objectives will be achieved. This standard recognizes that the cost of internal controls should not exceed the benefits derived therefrom, and that the benefits consist of reductions in the risks of failing to achieve the stated objectives.

3.9 Supportive Attitude

Executives, managers and employees should maintain a supportive attitude towards internal controls.

3.10 Control Objectives

Control objectives are to be identified or developed for each organizational activity.

4. RESPONSIBILITIES OF DEPARTMENT/AGENCIES AND DISTRICTS GOVERNED BY THE BOARD OF SUPERVISORS

4.1 Establish and Maintain a System or Systems of Internal Control.

4.1.1 Responsibility

Designate specific responsibility for determining that department/agency internal control systems are developed, maintained, reviewed and improved as necessary.

4.1.2 Coordination

Provide for coordination between organizational units within the department/agency and with other departments/agencies' in matters concerning internal control.

4.1.3 Standards

Require each internal control system to meet the standards of internal control described in Section 3. (Standards of Internal Controls).

4.1.4 Guidelines

4.2 Determine that the System is Functioning as Prescribed and is Modified, as Appropriate, for Changes in Conditions.

4.2.1 Review

Review internal control systems on an ongoing basis to determine whether controls are operating as intended and are effective.

4.2.2 Resolution of Deficiencies Identified by Department/Agency Personnel

Provide prompt and proper resolution of deficiencies identified by department/agency personnel.

4.2.3 Resolution of Deficiencies Identified by Other Parties

Provide prompt and proper resolution of deficiencies noted during audits by the Internal Audit Department, external auditors, and/or consultants.

4.3.4 Risk Identification

On an on-going basis, identify potential risks that could hinder the department/agency from realizing management's objectives (i.e., effectiveness, efficiency, compliance with laws and regulations, and proper financial reporting) and determine how to manage those risks.

4.3 Document and Communicate the System of Internal Control to all Employees.

4.3.1 Written Policies and Procedures

Establish written policies and procedures that supplement the policies and procedures in the Auditor-Controller's County Accounting Procedures Manual, to assure intended functioning of internal control systems. These policies and procedures should set forth in writing the specific procedures to be followed, and should be communicated and made available to all employees.

4.3.2 Performance Appraisals

Reflect effectiveness in developing internal controls and in resolving and implementing appropriate audit recommendations in the performance appraisals of personnel.

5. RESPONSIBILITIES OF THE INTERNAL AUDIT DEPARTMENT

The Internal Audit Department shall assist management in the monitoring of internal controls through:

5.1 Periodic Reviews

Make periodic reviews of internal control systems including documentation and compliance to determine whether policies and standards established by a department/agency are adequate, properly implemented, and being followed.

5.2 Written Reports

Prepare written reports summarizing deficiencies in existing internal control systems accompanied by recommendations for improving those deficiencies. Distribute the reports in accordance with Audit Oversight Committee procedures.

5.3 Follow-up Audits

Conduct follow-up reviews of department/agency efforts to respond to audit findings and recommendations.

6. RESPONSIBILITIES OF THE AUDITOR CONTROLLER DEPARTMENT

The Internal Audit Department shall assist management in the monitoring of internal controls through:

6.1 Policies

Develop and maintain County Accounting Procedures, and make them available to all departments/agencies.

6.2 Procedures

Prepare written reports summarizing deficiencies in existing internal control systems accompanied by recommendations for improving those deficiencies. Distribute the reports in accordance with Audit Oversight Committee procedures.

6.3 Systems

Develop financial accounting systems with built-in controls that safeguard and maintain the integrity of the accounting information that is submitted.

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Where the Typical Orange County Property Tax Dollar Goes

(Locally Assessed 1% Basic Levy)

pie chart

Due to new property tax legislation effective for the 2004-2005 fiscal year, the County and the cities will receive property taxes from the schools' allocation to replace local sales taxes and vehicle license fees transferred to the State. The State is required to backfill the schools' revenues.

Orange County receives the lowest share of Property Tax in the entire state of California.

One percent (1%) of the County's funds support the County Library, a non-general fund department.

The largest share of all Property Taxes supports school districts.

The Orange County Fire Authority is included with the Special Districts.

See "How the Property Tax System Works"

Educational Revenue Augmentation Fund Contributions 2010 - 2011