CONTRA COSTA COMMUNITY COLLEGE DISTRICT MEASURE A BOND OVERSIGHT COMMITTEE AGENDA

Transcription

1 CONTRA COSTA COMMUNITY COLLEGE DISTRICT MEASURE A BOND OVERSIGHT COMMITTEE AGENDA I. CALL MEETING TO ORDER January 16, 2013 Campus Tour: 2:00 p.m. 3:00 p.m. Meeting: 3:00 p.m. 5:00 p.m. Trophy Room Diablo Valley College II. III. IV. PRESENTATIONS FROM THE PUBLIC WELCOME AND INTRODUCTIONS ACTION ITEMS a. *Review and approve October 17, 2012 minutes (Committee Chair) b. *Review and recommend for acceptance to the Governing Board the bond audits for year ended June 30, 2012 (James Marta & Co. CPA) V. INFORMATION a. Review of the 2012 annual bond measure report (Tim Leong) b. Committee Chair s report to the Governing Board (John alamin) c. CalBOC Board (Tim Leong) d. *Measure A 2002 update (Ray Pyle) e. *Measure A 2006 update (Ray Pyle) f. Costsaving measures (Ray Pyle) i. Districtdeferred maintenance ii. Mechanisms designed to reduce the cost of professional fees iii. Mechanisms to reduce the costs of site preparation iv. Recommendations for joint use of core facilities v. Mechanisms to reduce costs by efficiencies in school site design vi. Recommendations for the use of costeffective and efficient reusable plans VI. VII. VIII. IX. REPORTS a. Chancellor (Helen Benjamin) b. Contra Costa College (Denise Noldon) c. Diablo Valley College (Peter Garcia) d. Los Medanos College (Bob Kratochvil) COMMENTS FROM COMMITTEE MEMBERS a. Future agenda items COMMITTEE INFORMATION a. *Committee membership list (Committee Chair) b. *Committee meeting schedule for (Committee Chair) OTHER X. ADJOURN *Attachment

2 Contra Costa Community College District Measure A Bond Oversight Committee Minutes October 17, :00 p.m. 5:00 p.m. Meeting 5:00p.m. 6:00 p.m. New Member Orientation Governing Board Room District Office Present: Absent: Staff: Jagjit Bhambra, James Clay, John Cottrell, Jasmine Ramezanzadeh, Enrique Ruiz, William van Dyk, Mauna Wagner Jess Hurtado, Debora van Eckhardt Peter Garcia, Bob Kratochvil, Denise Noldon, John alamin, Ray Pyle, Tim Leong, Christina Chellew I. CALL MEETING TO ORDER The meeting was called to order by Committee Chair, James Clay, at 3:07 p.m. II. PRESENTATIONS FROM THE PUBLIC There were no presentations from the public. III. WELCOME AND INTRODUCTIONS COMMITTEE AND GUESTS Mr. Pyle introduced the District Office capital improvements program management team, which includes individuals from the facilities department, finance department, and the purchasing department, to the committee. IV. ACTION ITEM A. The July 18, 2012 meeting minutes were unanimously approved. B. Mr. Leong handed out a copy of the draft letter to the public for the committee to review. He explained that this letter combined with other documents will be made available to the public electronically on the District website and hard copies of the pamphlets will be sent to the county libraries. He reminded everyone that the purpose of this annual report to the community is to keep the public informed about the District s spending of the bonds. He thanked Mr. Clay, Dr. van Dyk, and Ms. Wagner for their help in drafting the letter to the community. He gave the committee a moment to review the letter and asked for any comments or questions on revisions that may need to be made or areas they would like highlighted. Dr. van Dyk highlighted the sentence that indicated the administering the bond expenditures is well within industry standards. Mr. Ruiz asked that EMT be spelled out and possibly mention the cities that the colleges are located in. Ms. Wagner explained that the colleges and their addresses are included in the context of the pamphlet. Mr. Ross suggested that it is included in the bullet of the audit that there were no problems found. Mr. Clay explained that that information was included later using auditor language. Mr. Ruiz asked if we could include where the audit report is located. Ms.

3 Wagner added that community should be capitalized. Mr. Clay noted that under the audit section it should specify that the audit is in reference to the prior fiscal year and that due to the time it takes to complete an audit, the audits are not completed until between December and January of the following fiscal year. Dr. alamin asked that we add annual to the audit bullet so the community knows that the District has an audit performed on an annual basis. Mr. Leong recapped on the suggested revisions with the committee and the commi. Mr. Clay moved on to the informational items since there were no other questions or comments. V. INFORMATION A. Measure A 2002 Update District Overview Mr. Pyle reminded everyone that mitigation plans are in place to cover the projected cost increases for various projects at Contra Costa College (CCC). He explained that the cost increase will be covered by reallocating funds from other projects, which will be reflected on the bond project report when the budget transfers have been entered. He noted that there were no additions to the completed project list and that he and his staff are currently in the final stages of work under the 2002 bond, with a few projects left at Los Medanos College (LMC) and CCC, but all projects at Diablo Valley College (DVC) are completed. He concluded stating that no budget adjustments were made at the program level during this reporting period. CCC Mr. Pyle reminded the committee that the Music Building Remodel had extensive hazardous material abatement, beyond what was initially expected, and that there were unexpected structural deficiencies discovered after the framing was exposed. Therefore, this has significantly impacted the cost and schedule of this project. He noted that the project is completed for the most part so conversations are taking place with the campus to discuss moving plans into the new building since it is in the middle of the fall semester. Mr. Pyle explained that the VA Building Renovation project originally had four mechanical doors, but a fifth mechanical door was added which impacted the projected schedule. Mr. Pyle explained that he and his staff have met with California Geologic Survey staff and the architects to put a new projected schedule in place for the New College Center project. He stated that the projected schedule has been moved from December 2015 to February Dr. van Dyk asked if a start date has been established and Mr. Pyle explained that this project will probably to go out for bid in the summer of He clarified that these are only estimated start dates based on discussion with state staff. Mr. Pyle moved forward to the Parking Lot 16 Repair project which will go through design and then be held up prior to bid. He reminded everyone that if additional funds are needed for the music building, then this project will move to the 2006 bond project list and the rest of the funds for this project will be used for the music building

4 2002 project. He added also that the project administration and construction management budget has been impacted by the delays as well due to the Music Building Remodel project and noted that the overall campus project Admin/CM is partially funded in both the 2002 and 2006 bond funds. Mr. Pyle noted that the Gym Annex Elevator project has been delayed which also extended the amount of time required to manage 2002 bond projects beyond what was originally anticipated so a budget adjustment has been made during this reporting period to account for the extended performance period. Mr. Pyle reviewed the budget adjustments noting that campus contingency funds were moved to Music Building Remodel project and Project Admin/CM to cover projections. He noted the net change of 14k which represents the interest revenue that came in to the campus at various times. DVC Mr. Pyle noted that the next quarterly report should reflect all 2002 DVC projects completed. Mr. Pyle concluded the DVC update with the budget adjustments noting that no significant adjustments were made. He explained that the adjustments that were made were to close expenses. LMC Mr. Pyle explained that time will be spent with President Kratochvil to discuss strategies for expense adjustments with the campus contingency fund. Mr. Pyle concluded stating that no budget adjustments were made at LMC during this reporting period B. Measure A 2006 update District Overview Mr. Pyle began by stating that he is working with finance to update the estimated interest as he reminded everyone that the interest rate is much lower than anticipated. Mr. Ross noted that if interest rates are high then construction prices could be estimated high as well because businesses are doing well. Mr. Pyle reminded the committee that the unallocated revenue and program level contingencies will be used to hedge this interest shortfall if needed. He commented that the IT infrastructure project has completed at the District Office (DO) and is currently being done at DVC. He concluded stating that no budget adjustments were made at the program level during this reporting period. CCC Mr. Pyle reminded the committee that during Phase II of the Athletic Field project, it was found that there had been a 1974 pool project that was not certified as being Field Act compliant. He explained that the new policy with the Division of the State

5 Architect is that they will not approve another project until that previous project is certified. He noted that it has since been certified as of May 2012 which allows the project to move forward, but that this has resulted in a project delay. Mr. Pyle reminded the committee that the Physical Education Annex Renovation project was delayed due to lack of a state bond on the November 2010 election ballot for funding and the earliest funding fiscal year will be Mr. Pyle explained that the Parking Lot 16 Repair project from the 2002 bond project list expenses will be moved under the scope of the Infrastructure Improvements project once 2002 bonds are fully expensed. Mr. Pyle concluded stating that no budget adjustments were made at CCC during this reporting period DVC Mr. Pyle continued discussion with the Ball Field Restoration project delay due to bids coming in approximately 200k over the construction budget. He explained that the bids were cancelled and bids will go back out in January before companies have filled up on construction projects and attempt to receive bid prices that fall within the District s construction budget. President Garcia clarified that all monies for this project are planned for which is why it is important to stay on target for the construction budget. Mr. Ross asked if the Project Labor Agreement was approved. Mr. Pyle explained that the agreement was approved at the December 2011 Governing Board meeting, but it was not signed. He further explained that the agreement was renegotiated and brought back to the October 2012 Governing Board meeting as the Project Stabilization Agreement, where it was approved. Mr. Pyle noted that he is currently gathering signatures and the threshold for the agreement is for projects with an estimated construction cost of 2M. LMC Mr. Pyle began by noting that the Nursing/EMT Remodel project should be completed under budget. He continued by reminding the committee that the project delay with the Student Services project is mainly due to the project delay in the Nursing/EMT Remodel project. Mr. Pyle reminded the committee that the Physical Education project was also delayed due to lack of a state bond on the November 2010 election ballot for funding and the earliest funding fiscal year will be Mr. Pyle reviewed the budget adjustments noting that Parking Lot B project came in under budget so left over budget was moved into a contingency fund. Mr. Ross asked what the difference is between contingency and future projects. Mr. Pyle explained that it is simply a holding place because all funds have to be accounted for somewhere. Mr. Ross asked if there is a timeline after all projects are completed to expense funds. Mr. Pyle explained that a bond measure would not be closed with any funds in it. He continued by clarifying that if any funds are remaining

6 the District would find smaller projects like infrastructure, Athletics, and/or IT projects that fit underneath the bond language. Dr. van Dyk asked if monies could be moved from one campus to another. Mr. Pyle explained that it could be done if approved by District management and the Governing Board, but more importantly only if it goes along with the bond language. C. Costsaving measures Mr. Pyle stated that there was nothing to report on costsaving measures at this time. D. Next Issuance and Sale of Bonds Dr. alamin spoke on refunding 106M of current general obligation bonds to generate approximately 14M in savings for taxpayers. He explained that the bonds will be sold tomorrow morning at 6:30 a.m. so the District will be waiting for a phone call around 10:00 a.m. to confirm. He continued by stating that this is a good way to utilize the market and help save the taxpayers money. He noted that the District is anticipating going out for a new issuance in late 2013 or early 2014 and that now is the time to make sure all locations have projects in queue over a 34 year span. Mr. Ruiz asked if the refunding was coming from the 2002 issuance or the 2006 issuance. Dr. alamin explained that it will be from both. VI. REPORTS A. Chancellor Dr. Benjamin was absent. B. CCC President Noldon reported that CCC is in the punch list phase of the Music Building Renovation project. She explained that staff is collecting warranties, cataloging, receiving, and insuring that good tracking mechanisms are in place. She noted that the campus is looking forward to the New College Center project to get underway. Mr. Ruiz asked if there were college level purchasing options. Mr. Pyle responded that the DO has a purchasing staff that is in charge of the equipment purchases of the building while working with campus staff. C. DVC President Garcia commented that having centralized purchasing has been a blessing and that the major equipment is beginning to be delivered into the new student services building. He noted that all feedback has been positive and departments are ready to move into the new student services in about two weeks. He noted that the total property left in old building is only around 2,500. D. LMC President Kratochvil echoed Mr. Pyle s comments of the purchasing and facilities staff with appreciation to the work that they do. He reported that the next project will be the whole east side of the main college complex building will be renovated and

7 that access points to that building will be complicated for students, so LMC is working on clearly posting navigation routes for students to get around the construction that will last approximately two years. He noted that ADA accessibility is being looked at as well. He explained that a lot of demolition will be starting the second or third week of December and hoped the timing will work with winter break. VII. COMMENTS FROM COMMITTEE MEMBERS Ms. Wagner asked about the response to the Grand Jury Report. Dr. alamin explained that the Grand Jury has not reported anything back yet for next steps. Mr. Clay asked about Brown Act Training and Dr. alamin explained that would be covered directly after this meeting. VIII. COMMITTEE INFORMATION A. The updated membership list was included with the meeting packet. B. The meeting schedule was included with the meeting packet. IX. OTHER Mr. Leong took the committee picture that will be published in the annual informational flyer to the community. X. ADJOURN The meeting was adjourned by Committee Chair, James Clay, at 4:20pm.

8 CONTRA COSTA COMMUNITY COLLEGE DISTRICT 2002 GENERAL OBLIGATION BOND FUND MEASURE A PERFORMANCE AUDIT June 30, 2012

9 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND2002 MEASURE A FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Independent Auditors' Report 1 Authority for Issuance 2 Purpose of Issuance 2 Authority for the Audit 2 Objectives of the Audit 3 Scope of the Audit 3 Financial Summary 3 Procedures Performed 5 Conclusion 5 Schedule of Findings 6

10 James Marta & Company Certified Public Accountants Accounting, Auditing, Consulting, and Tax INDEPENDENT AUDITORS REPORT Board of Trustees And Citizens Bond Oversight Committee Contra Costa Community College District Martinez, California We were engaged to conduct a performance audit of the Contra Costa Community College District (the District), 2002 Measure A Building Fund for the year ended June 30, We conducted this performance audit in accordance with the standards applicable to performance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our conclusion based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our conclusions based on our audit objectives. Our audit was limited to the objectives listed within the report which includes determining the District s compliance with the performance requirements as referred to in Proposition 39 and outlined in Article XIIIA, Section 1(b)(3)(C) of the California Constitution. Management is responsible for the District s compliance with those requirements. In planning and performing our performance audit, we obtained an understanding of the District s 2002 Measure A Building Fund internal control in order to determine if the internal controls were adequate to help ensure the District s compliance with the requirements of Proposition 39 and outlined in Article XIIIA, Section 1 (b)(3)(c) of the California Constitution. Accordingly, we do not express an opinion on the effectiveness of the District s 2002 Measure A Building Fund internal control. The results of our tests indicated that the District 2002 Measure A Building Fund were expended only for the specific projects approved by the voters, in accordance with Proposition 39 and outlined in Article XIIIA, Section 1 (b)(3)(c) of the California Constitution. James Marta & Company Certified Public Accountants December 10, Howe Avenue Suite E3, Sacramento, California Phone: (916) Fax: (916) jmarta@jpmcpa.com

11 CONTRA COSTA COMMUNITY COLLEGE DISTRICT AUTHORITY FOR ISSUANCE BUILDING FUND2002 MEASURE A FOR THE YEAR ENDED JUNE 30, 2012 The 2002 Measure A General Obligation Bonds are issued pursuant to the Constitution and laws of the State of California (the State), including the provisions of Chapters 1 and 1.5 of Part 10 of the California Education Code, and other applicable provisions of law. The District received authorization at an election held on March 5, 2002, to issue bonds of the District in an aggregate principal amount not to exceed 120,000,000 to finance specific construction and renovation projects approved by eligible voters within the District. The proposition required approval by at least 55 percent of the votes cast by eligible voters within the District (the 2002 Authorization). The Bonds represent the first, second, and third series of the authorized bonds to be issued under the 2002 Authorization. PURPOSE OF ISSUE The net proceeds of the Bonds and any other series of general obligation bonds issued under the Authorization will be used for the purposes specified in the District bond proposition submitted at the Election, which include providing funds needed to continue to renovate and modernize District facilities. The funds will be used to repair outmoded facilities (for energy savings, safety, and handicapped accessibility improvements), and update facilities used by vocational programs (for fire science, nursing, police, culinary arts, technical programs, etc), and transfer programs at Contra Costa College, Diablo Valley College, Los Medanos College, and San Ramon Valley Center, and the Brentwood/Delta Science Centers. AUTHORITY FOR THE AUDIT On November 7, 2000, California voters approved Proposition 39, the Smaller Classes, Safer Schools and Financial Accountability Act. Proposition 39 amended portions of the California Constitution to provide for the issuance of general obligation bonds by school districts, community college districts, or county offices of education, for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of rental property for school facilities, upon approval by 55% of the electorate. In addition to reducing the approval threshold from twothirds to 55%, Proposition 39 and the enacting legislation (AB 1908 and AB 2659) requires the following accountability measures as codified in Education Code sections : 1. Requires that the proceeds from the sale of the bonds be used only for the purposes specified in Article XIIIA, Section 1(b)(3)(C) of the California Constitution, and not for any other purpose, including teacher and administrator salaries and other district operating expenses. 2. The district must list the specific facilities projects to be funded in the ballot measure, and must certify that the governing board has evaluated safety, class size reduction and information technology needs in developing the project list. 3. Requires the district to appoint a citizen's oversight committee. 2

12 CONTRA COSTA COMMUNITY COLLEGE DISTRICT AUTHORITY FOR THE AUDIT (continued) BUILDING FUND2002 MEASURE A FOR THE YEAR ENDED JUNE 30, Requires the district to conduct an annual independent financial audit and performance audit in accordance with the Government Auditing Standards issued by the Comptroller General of the United States of the bond proceeds until all of the proceeds have been expended. 5. Requires the district to conduct an annual independent performance audit to ensure that the funds have been expended only on the specific projects listed. OBJECTIVES OF THE AUDIT 1. Determine whether expenditures charged to the Building Fund 2002 Measure A Fund have been made in accordance with the bond project list approved by the voters through the approval of the 2002 Measure A. 2. Determine whether salary transactions, charged to the Building Fund 2002 Measure A Fund were in support of the 2002 Measure A and not for District general administration or operations. SCOPE OF THE AUDIT The scope of our performance audit covered the period of July 1, 2011 to June 30, The population of expenditures tested included all object and project codes associated with the bond projects. The propriety of expenditures for capital projects and maintenance projects funded through other State or local funding sources, other than proceeds of the bonds, were not included within the scope of the audit. Expenditures incurred subsequent to June 30, 2012 were not reviewed or included within the scope of our audit or in this report. FINANCIAL SUMMARY 1. The 2002 general obligation bond funds in the amount of 120,000,000 were authorized at an election of the registered voters of the District held on March 5, The first series of the 2002 bonds was issued in July 2002 and in the principal amount of 50,000,000. The second series of the 2002 bonds was issued in August 2004 and in the principal amount of 45,000,000. The third series of the 2002 bonds was issued in May 2006 and in the principal amount of 25,000, Total expenditure of bond funds as of June 30, 2012, were 125,474,505. 3

13 CONTRA COSTA COMMUNITY COLLEGE DISTRICT FINANCIAL SUMMARY (continued) BUILDING FUND2002 MEASURE A FOR THE YEAR ENDED JUNE 30, An analysis of expenditures is as follows as of June 30, 2012 is as follows: Prior 7/1/2011 to Periods 6/30/2012 Total Expenditures Salaries and benefits 553, ,099 Services and operating expenditures 2,653, ,096 2,810,486 Capital outlay 117,150,460 4,960, ,110,920 Total expenditures 120,356,949 5,117, ,474,505 Available unspent funds from the bonds as of June 30, 2012 are: Prior 7/1/2011 to Periods 6/30/2012 Total Net available proceeds for construction 120,000, ,000,000 Local revenue 3,600 3,600 Interest earned 9,787,042 34,956 9,821,998 Total revenues received 129,790,642 34, ,825,598 Total expenditures (125,474,505) Amount available 4,351, As of June 30, 2012, the Building Fund 2002 Measure A had the following commitments with respect to unfinished capital projects: Capital Project Remaining Contract Commitment Contra Costa College Card Access 11,924 Construction Management 6,443 Gym Anex Elevator 50,722 Music Building 601,271 New College Center 1,462,136 VA Building Renovation 39,085 2,171,581 4

14 CONTRA COSTA COMMUNITY COLLEGE DISTRICT PROCEDURES PERFORMED BUILDING FUND2002 MEASURE A FOR THE YEAR ENDED JUNE 30, 2012 We obtained the general ledger and the project expenditure reports prepared by the District for the fiscal year ended June 30, 2012 for the Building Fund 2002 Measure A. Within the fiscal year audited, we obtained the actual invoices and other supporting documentation for a sample of expenditures to ensure compliance with the requirements of Article XIIIA, Section 1(b)(3)(C) of the California Constitution and Measure A as to the approved bond projects list. We performed the following procedures: 1. We selected a sample of expenditures for the period starting July 1, 2011 and ending June 30, 2012, and reviewed supporting documentation to ensure that such funds were properly expended on the specific projects listed in the ballot text. 2. Our sample included transactions totaling 2,395,072. This represents 47 percent of the total expenditures of 5,117,556, including expenditures related to transferred funds. 3. We verified that funds from the Building Fund 2002 Measure A were generally expended for the construction, renovation, furnishing and equipping of District facilities constituting authorized bond projects. In addition, we verified that funds held in the Building Fund 2002 Measure A were used for salaries of administrators only to the extent they perform administrative oversight work on construction projects as allowable per Opinion issued on November 9, 2004 by the State of California Attorney General. CONCLUSION The results of our tests indicated that, in all significant respects, the Contra Costa Community College District has properly accounted for the expenditures held in the Building Fund 2002 Measure A fund and that such expenditures were made for authorized Bond projects. Further, it was noted that funds held in the Building Fund 2002 Measure A, and expended by the District, were used for salaries of administrators only to the extent they perform administrative oversight work on construction projects as allowable per Opinion issued on November 9, 2004 by the State of California Attorney General. James Marta & Company Certified Public Accountants December 10,

15 No matters were reported. CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND2002 MEASURE A SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30,

16 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A FINANCIAL AUDIT JUNE 30, 2012

17 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT 1 BASIC FINANCIAL STATEMENTS Balance Sheet 2 Statement of Revenues, Expenditures, and Changes in Fund Balance 3 Notes to the Financial Statements 4 OTHER INDEPENDENT AUDITOR S REPORTS Report on Internal Control Over Financial Reporting and on Compliance and on Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 11 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Financial Statement Findings 13 Schedule of Prior Audit Findings 14

18 James Marta & Company Certified Public Accountants Accounting, Auditing, Consulting, and Tax INDEPENDENT AUDITORS' REPORT Governing Board and Measure A Citizens Oversight Committee Contra Costa Community College District Martinez, California We have audited the accompanying financial statements of the Contra Costa Community College District Building Fund 2002 Measure A, as of and for the year ended June 30, 2012, as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Building Fund 2002 Measure A Bond Funds of the Contra Costa Community College District at June 30, 2012, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1, the financial statements present only the Building Fund specific to the 2002 Measure A Bond Funds and are not intended to present fairly the financial position and results of operations of the Contra Costa Community College District in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2012, on our consideration of the District Building Fund's (2002 Measure A) internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in conjunction with this report in considering the results of our audit. James Marta & Company Certified Public Accountants December 10, Howe Avenue Suite E3, Sacramento, California Phone: (916) Fax: (916) jmarta@jpmcpa.com

19 BASIC FINANCIAL STATEMENTS

20 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A BALANCE SHEET JUNE 30, 2012 ASSETS Cash and cash equivalents 5,124,567 Accounts receivable 7,551 Due from other funds 7,700 Other assets 384,439 Total assets 5,524,257 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable 1,047,905 Due to other funds 125,259 Total liabilities 1,173,164 FUND BALANCE Restricted 4,351,093 Total liabilities and fund balance 5,524,257 The accompanying notes are an integral part of these financial statements. 2

21 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Investment income 34,956 EXPENDITURES Books and supplies 5,139 Services and other operating expendiures 151,957 Capital outlay 4,960,460 Total Expenditures 5,117,556 Excess of Revenue over (under) Expenditures (5,082,600) Fund Balance, Beginning of Year 9,433,693 Fund Balance, End of Year 4,351,093 The accompanying notes are an integral part of these financial statements. 3

22 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND (2002 MEASURE A) NOTES TO FINANCIAL STATEMENTS JUNE 30, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Contra Costa Community College District Building Fund 2002 Measure A conforms to accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants. The Contra Costa Community College District Building Fund 2002 Measure A accounts for financial transactions in accordance with the policies and procedures of the California College Budget and Accounting Manual. A. REPORTING ENTITY The Contra Costa Community College District (the "District") is a public educational agency operating under the applicable laws and regulations of the State of California It is governed by a five member Governing Board elected by registered voters of the District, which comprises an area in Contra Costa County. The District was established in 1949 and serves students in posteducation. These financial statements were prepared to comply with the requirements of proposition 39 related to the 55% voter approval requirements for bond issues and include only the Building Fund 2002 Measure A established to account for the expenditures of the general obligation bonds approved on March 5, These financial statements are not intended to present fairly the complete financial position and results of operations of the Contra Costa Community College District in conformity with generally accepted accounting principles. The Committee s oversight goals include ensuring expenditures are within the language of the ballot measure and advising the District s Governing Board on various projects. The citizens' oversight committee must include, among others, representation of a bona fide taxpayers association, a business organization and a senior citizens organization. No district employees or vendors are allowed to serve on the citizens' oversight committee. The financial statements presented are for the individual Measure A General Obligation Bond Building Fund and are not intended to be a complete presentation of the District s financial position or results of operations. B. FUND ACCOUNTING The accounts of the District are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of selfbalancing accounts that comprise its assets, liabilities, fund equity or retained earnings, revenues, and expenditures or expenses, as appropriate. District resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The proceeds from the sale of general obligation bonds and the subsequent expenditure of the bond funds are accounted for in the Building fund of the District. Any premium received from the sale of the bonds is deposited in the Bond and Interest Redemption fund of the District. The Measure A Bond Building Fund forms part and not all of the net assets in the District s Building Fund which contains other sources of funding. 4

23 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 C. ACCOUNTING POLICIES The District prepares its financial statements in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA) and complies with the policies and procedures of the California College Budget and Accounting Manual. The District is also required to follow the pronouncements of the Financial Accounting Standards Board (FASB) issued through November 30, 1989 (when applicable) that do not conflict with or contradict GASB pronouncements. In addition, the District has the option to apply FASB pronouncements issued after that date to businesstype activities and enterprise funds, if applicable. The District does not currently have any business activities or enterprise funds that require the District to follow the pronouncement of the FASB. D. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurement made, regardless of the measurement focus applied. The financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. Available means the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the District, available means collectible within the current period or within 60 days after yearend. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. E. BUDGETS AND BUDGETARY ACCOUNTING Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. By state law, the District's governing board must adopt a final budget no later than July 1. A public hearing must be conducted to receive comments prior to adoption. The District's governing board satisfied these requirements. F. ENCUMBRANCES Encumbrance accounting is used in all budgeted funds to reserve portions of applicable appropriations for which commitments have been made. Encumbrances are recorded for purchase orders, contracts, and other commitments when they are written. Encumbrances are liquidated when the commitments are paid. All encumbrances are liquidated at June 30. 5

24 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 G. DEPOSITS AND INVESTMENTS The District is considered to be an involuntary participant in an external investment pool as the District is required to deposit all receipts and collections of monies with their County Treasurer (Education Code Section 41001).The County is authorized to deposit cash and invest excess funds by California Government Code Section et seq. The District is authorized under California Government Code to make direct investments in local agency bonds, notes, or warrants within the State; U.S. Treasury instruments; registered State warrants or treasury notes; securities of the U.S. Government, or its agencies; bankers acceptances; commercial paper; certificates of deposit placed with commercial banks and/or savings and loan companies; repurchase or reverse repurchase agreements; medium term corporate notes; shares of beneficial interest issued by diversified management companies; certificates of participation; obligations with first priority security; and collateralized mortgage obligations. Investments with original maturities greater than one year are stated at fair value. Fair value is estimated based on quoted market prices at yearend. All investments not required to be reported at fair value are stated at cost or amortized cost. H. CAPITAL AND LONGTERM DEBT The accounting and reporting treatment applied to the capital assets and longterm liabilities associated with the General Obligation Bond Fund is accounted for on a spending or financial flow measurement focus. This means that only current assets and liabilities are generally included on the balance sheet. The reported fund balances is considered a measure of available spendable resources. Thus, the capital assets and longterm liabilities associated with the Measure A General Obligation Bond Fund are accounted for in the basic financial statements of the District. I. FUND BALANCES GOVERNMENTAL FUNDS Fund balances of the governmental funds are classified as follows: Nonspendable amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact. Restricted amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. Committed amounts that can be used only for specific purposes determined by a formal action of the governing board. The governing board is the highest level of decisionmaking authority for the District. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by the governing board. 6

25 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 I. FUND BALANCES GOVERNMENTAL FUNDS (continued) Assigned amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the District's adopted policy, only the governing board or chief business officer may assign amounts for specific purposes. Unassigned all other spendable amounts. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the District considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the District considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the governing board has provided otherwise in its commitment or assignment actions. J. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. K. NEW ACCOUNTING PRONOUNCEMENTS In November 2010, the GASB issued GASB Statement No. 61, The Financial Reporting Entity: Omnibusan amendment of GASB Statements No. 14 and No. 34. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14, The Financial Reporting Entity, and the related financial reporting requirements of Statement No. 34, Basic Financial Statementsand Management's Discussion and Analysisfor State and Local Governments, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements. The provisions of this Statement are effective for financial statements for periods beginning after June 15, Earlier application is encouraged. 7

26 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, CASH AND INVESTMENTS Cash and investments as of June 30, 2012 consist of Cash in the County Treasury of 5,124,567. A. County in County Treasury Cash in County Treasury consists of District cash held by the Contra Costa County Treasury that is invested in the county investment pool. The Treasury permits negative cash balances so long as the District s total cash in county treasury has a positive balance. The fair value of the District's investment in the pool is reported in the financial statements at amounts that are based upon the District's prorata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to the amortized cost of that portfolio). The weighted average maturity of the pool is 151 days. The pool is rated AAAf by Standard and Poor s. Interest Rate Risk. Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an investment. Generally, as the length of the maturity of an investment increases, the greater the sensitivity of its fair value to changes in market interest rates. The District manages its exposure to interest rate risk by investing in the County Treasury that purchases a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measure by the assignment of a rating by a nationally recognized statistical rating organization. The Building Fund 2002 Measure A only invests in County Pooled Investment Funds which are not required to be rated. Custodial Credit Risk Deposits This is the risk that in the event of a bank failure, the Building Fund 2002 Measure A or District's deposits may not be returned to it. The Building Fund 2002 Measure A does not have any deposits subject to custodial credit risk. 3. ACCOUNTS RECEIVABLE Accounts receivable at June 30, 2012, consists of interest receivable of 7, INTERFUND TRANSACTIONS Interfund receivables/payables (Due To/Due From) As of June 30, 2012, the Building Fund 2002 Measure A has an amount of 7,700 due from other capital project funds. In addition, the Building Fund 2002 Measure A owes 125,259 to other capital project funds for the Contra Costa College s College Center. 8

27 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, ACCOUNTS PAYABLE Accounts payable at June 30, 2012, consists of the following: Vendor payables 663,466 Construction retention 384,439 Total accounts payable 1,047, MEASURE A GENERAL OBLIGATION BONDS On November 7, 2000, California voters approved Proposition 39, the Smaller Classes, Safer Schools and Financial Accountability Act. Proposition 39 amended portions of the California Constitution to provide for the issuance of general obligation bonds by school districts, community college districts, or county offices of education, for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of rental property for school facilities. The Bonds were issued in the amount of 120,000,000 The Bonds are payable from the proceeds of ad valorem property taxes which the Board of Supervisors of Contra Costa County are obligated to levy and collect on all taxable property in the District for the payment of the accreted value or conversion value of and interest on the Bonds. 7. FUND BALANCES The entire fund balance is restricted for specific capital projects of the District. 8. COMMITMENTS AND CONTINGENCIES As of June 30, 2012, the Building Fund 2002 Measure A had the following commitments with respect to unfinished capital projects: Remaining Contract Capital Project Commitment Contra Costa College Card Access 11,924 Construction Management 6,443 Gym Anex Elevator 50,722 Music Building 601,271 New College Center 1,462,136 VA Building Renovation 39,085 2,171,581 9

28 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, SUBSEQUENT EVENTS District management evaluated its June 30, 2012 financial statements for subsequent events through December 10, 2012, the date these financial statements were available to be issued. Management is not aware of any subsequent events that would require recognition or disclosure in the financial statements. 10

29 INDEPENDENT AUDITORS' REPORT

30 James Marta & Company Certified Public Accountants Accounting, Auditing, Consulting, and Tax INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Governing Board and Citizens Oversight Committee Contra Costa Community College District Martinez, California We have audited the accompanying financial statements of the Contra Costa Community College District (the District) Building Fund (2002 Measure A), as of and for the year ended June 30, 2012, and have issued our report thereon dated December 10, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of Contra Costa Community College District is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Contra Costa Community College District Building Fund s (2002 Measure A) internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Contra Costa Community College District Building Fund s (2002 Measure A) internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Contra Costa Community College District Building Fund s (2002 Measure A) internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above Howe Avenue, Suite E3, Sacramento, CA (916) fax (916) jmarta@jpmcpa.com

31 Compliance and Other Matters As part of obtaining reasonable assurance about whether Contra Costa Community College District Building Fund s (2002 Measure A) financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the governing board, management, and the 2002 Measure A Citizen Oversight Committee, and is not intended to be and should not be used by anyone other than these specified parties. James Marta & Company Certified Public Accountants December 10,

32 SCHEDULE OF FINDINGS AND QUESTIONED COSTS

33 No matters were reported. CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND (2002 MEASURE A) FINANCIAL STATEMENT FINDINGS JUNE 30,

34 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2002 MEASURE A SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS JUNE 30, 2012 No matters were reported. 14

35 CONTRA COSTA COMMUNITY COLLEGE DISTRICT 2006 GENERAL OBLIGATION BOND FUND MEASURE A PERFORMANCE AUDIT June 30, 2012

36 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND2006 MEASURE A FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Independent Auditors' Report 1 Authority for Issuance 2 Purpose of Issuance 2 Authority for the Audit 2 Objectives of the Audit 3 Scope of the Audit 3 Financial Summary 3 Procedures Performed 6 Conclusion 6 Schedule of Findings 7

37 James Marta & Company Certified Public Accountants Accounting, Auditing, Consulting, and Tax INDEPENDENT AUDITORS REPORT Board of Trustees And Citizens Bond Oversight Committee Contra Costa Community College District Martinez, California We were engaged to conduct a performance audit of the Contra Costa Community College District (the District), 2006 Measure A Building Fund for the fiscal year ended June 30, We conducted this performance audit in accordance with the standards applicable to performance audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our conclusion based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our conclusions based on our audit objectives. Our audit was limited to the objectives listed within the report which includes determining the District s compliance with the performance requirements as referred to in Proposition 39 and outlined in Article XIIIA, Section 1(b)(3)(C) of the California Constitution. Management is responsible for the District s compliance with those requirements. In planning and performing our performance audit, we obtained an understanding of the District s 2006 Measure A Building Fund internal control in order to determine if the internal controls were adequate to help ensure the District s compliance with the requirements of Proposition 39 and outlined in Article XIIIA, Section 1 (b)(3)(c) of the California Constitution. Accordingly, we do not express an opinion on the effectiveness of the District s 2002 Measure A Building Fund internal control. The results of our tests indicated that the District 2006 Measure A Building Fund were expended only for the specific projects approved by the voters, in accordance with Proposition 39 and outlined in Article XIIIA, Section 1 (b)(3)(c) of the California Constitution. James Marta & Company Certified Public Accountants December 10, Howe Avenue Suite E3, Sacramento, California Phone: (916) Fax: (916) jmarta@jpmcpa.com

38 CONTRA COSTA COMMUNITY COLLEGE DISTRICT AUTHORITY FOR ISSUANCE BUILDING FUND2006 MEASURE A FOR THE YEAR ENDED JUNE 30, 2012 The 2006 Measure A General Obligation Bonds are issued pursuant to the Constitution and laws of the State of California (the State), including the provisions of Chapters 1 and 1.5 of Part 10 of the California Education Code, and other applicable provisions of law. The District received authorization at an election held on March 6, 2006, to issue bonds of the District in an aggregate principal amount not to exceed 286,500,000 to finance specific construction and renovation projects approved by eligible voters within the District. The proposition required approval by at least 55 percent of the votes cast by eligible voters within the District (the 2006 Authorization). The Bonds represent the first and second series of the authorized bonds to be issued under the 2006 Authorization. PURPOSE OF ISSUE The net proceeds of the Bonds and any other series of general obligation bonds issued under the Authorization will be used for the purposes specified in the District bond proposition submitted at the Election, which include providing funds needed to continue to renovate and modernize District facilities. The funds will be used to renovate aging college facilities (making energy savings, safety, and handicapped accessibility improvements), and update facilities used by transfer, career, and vocational students (for math, science, nursing, technology and other programs), at Contra Costa College, Diablo Valley College, Los Medanos College, San Ramon Valley and Brentwood Centers. AUTHORITY FOR THE AUDIT On November 7, 2000, California voters approved Proposition 39, the Smaller Classes, Safer Schools and Financial Accountability Act. Proposition 39 amended portions of the California Constitution to provide for the issuance of general obligation bonds by school districts, community college districts, or county offices of education, for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of rental property for school facilities, upon approval by 55% of the electorate. In addition to reducing the approval threshold from twothirds to 55%, Proposition 39 and the enacting legislation (AB 1908 and AB 2659) requires the following accountability measures as codified in Education Code sections : 1. Requires that the proceeds from the sale of the bonds be used only for the purposes specified in Article XIIIA, Section 1(b)(3)(C) of the California Constitution, and not for any other purpose, including teacher and administrator salaries and other district operating expenses. 2. The district must list the specific facilities projects to be funded in the ballot measure, and must certify that the governing board has evaluated safety, class size reduction and information technology needs in developing the project list. 3. Requires the district to appoint a citizen's oversight committee. 2

39 CONTRA COSTA COMMUNITY COLLEGE DISTRICT AUTHORITY FOR THE AUDIT (continued) BUILDING FUND2006 MEASURE A FOR THE YEAR ENDED JUNE 30, Requires the district to conduct an annual independent financial audit and performance audit in accordance with the Government Auditing Standards issued by the Comptroller General of the United States of the bond proceeds until all of the proceeds have been expended. 5. Requires the district to conduct an annual independent performance audit to ensure that the funds have been expended only on the specific projects listed. OBJECTIVES OF THE AUDIT 1. Determine whether expenditures charged to the Building Fund 2006 Measure A Fund have been made in accordance with the bond project list approved by the voters through the approval of 2006 Measure A. 2. Determine whether salary transactions, charged to the Building Fund 2006 Measure A Fund were in support of Measure A and not for District general administration or operations. SCOPE OF THE AUDIT The scope of our performance audit covered the period of July 1, 2011 to June 30, The population of expenditures tested included all object and project codes associated with the bond projects. The propriety of expenditures for capital projects and maintenance projects funded through other State or local funding sources, other than proceeds of the bonds, were not included within the scope of the audit. Expenditures incurred subsequent to June 30, 2012 were not reviewed or included within the scope of our audit or in this report. FINANCIAL SUMMARY 1. The 2006 general obligation bond funds in the amount of 286,500,000 were authorized at an election of the registered voters of the District held on March 6, The first series of the 2006 bonds was issued in August 2007, in the principal amount of 73,000,000. The second series of the 2006 bonds was issued in March 2010 in the principal amount of 73,000, Total expenditures as of June 30, 2012, were 96,610,998. 3

40 CONTRA COSTA COMMUNITY COLLEGE DISTRICT FINANCIAL SUMMARY (continued) BUILDING FUND2006 MEASURE A FOR THE YEAR ENDED JUNE 30, An analysis of expenditures is as follows as of June 30, 2012 is as follows: Prior 7/1/2011 to Periods 6/30/2012 Total Expenditures Salaries and benefits 2,333,011 1,311,895 3,644,906 Supplies Services and operating expenditures 2,596, ,384 3,200,019 Capital outlay 62,813,968 26,952,025 89,765,993 Total expenditures 67,743,694 28,867,304 96,610,998 Available unspent funds from the bonds as of June 30, 2012 are: Prior 7/1/2011 to Periods 6/30/2012 Total Net available proceeds for construction 146,000, ,000,000 Local revenue 7,639, ,260 7,929,770 Interest earned 3,169, ,934 3,512,168 Total revenues received 156,808, , ,441,938 Total expenditures and transfers (96,610,998) Amount available 60,830,940 4

41 CONTRA COSTA COMMUNITY COLLEGE DISTRICT FINANCIAL SUMMARY (continued) BUILDING FUND2006 MEASURE A FOR THE YEAR ENDED JUNE 30, As of June 30, 2012, the Building Fund 2006 Measure A had the following commitments with respect to unfinished capital projects: Capital Project Remaining Contract Commitment Contra Costa College Athletic Field 37,727 Construction Management 39,275 Infrastructure Improvements 293,387 New College Center 401,784 Seismic Retrofit Various Buildings 1,631 Diablo Valley College Commons Area Development 29,158,952 Softball & Baseball Field Renovation 38,150 Student Services Center 1,100,842 Los Medanos College New Brentwood Center 36,367 Nursing/EMT Remodel 349,110 District Office IT Infrastructure 8,474,258 Monitoring Base Commissioning 37,220 DistrictWide Energy Conservation Study 5,674 Master Plan 18,656 39,993,033 5

42 CONTRA COSTA COMMUNITY COLLEGE DISTRICT PROCEDURES PERFORMED BUILDING FUND2006 MEASURE A FOR THE YEAR ENDED JUNE 30, 2012 We obtained the general ledger and the project expenditure reports prepared by the District for the fiscal year ended June 30, 2012 for the Building Fund 2006 Measure A. Within the fiscal year audited, we obtained the actual invoices and other supporting documentation for a sample of expenditures to ensure compliance with the requirements of Article XIIIA, Section 1(b)(3)(C) of the California Constitution and Measure A as to the approved bond projects list. We performed the following procedures: 1. We selected a sample of expenditures for the period starting July 1, 2011 and ending June 30, 2012, and reviewed supporting documentation to ensure that such funds were properly expended on the specific projects listed in the ballot text. 2. Our sample included nonpayroll transactions totaling 7,604,226. This represents 28 percent of the nonpayroll expenditures of 27,555,409. We also examined payroll related expenditures aggregating 174,685, which is 13% of the payroll related expenditures. 3. We verified that funds from the Building Fund 2006 Measure A were generally expended for the construction, renovation, furnishing and equipping of District facilities constituting authorized bond projects. In addition, we verified that funds held in the Building Fund 2006 Measure A were used for salaries of administrators only to the extent they perform administrative oversight work on construction projects as allowable per Opinion issued on November 9, 2004 by the State of California Attorney General. CONCLUSION The results of our tests indicated that, in all significant respects, the Contra Costa Community College District has properly accounted for the expenditures held in the Building Fund 2006 Measure A fund and that such expenditures were made for authorized Bond projects. Further, it was noted that funds held in the Building Fund 2006 Measure A, and expended by the District, were used for salaries of administrators only to the extent they perform administrative oversight work on construction projects as allowable per Opinion issued on November 9, 2004 by the State of California Attorney General. James Marta & Company Certified Public Accountants December 10,

43 No matters were reported. CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND2006 MEASURE A SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED June 30,

44 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A FINANCIAL AUDIT JUNE 30, 2012

45 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A TABLE OF CONTENTS JUNE 30, 2012 PAGE INDEPENDENT AUDITOR'S REPORT 1 BASIC FINANCIAL STATEMENTS Balance Sheet 2 Statement of Revenues, Expenditures, and Changes in Fund Balance 3 Notes to the Financial Statements 4 OTHER INDEPENDENT AUDITOR S REPORTS Report on Internal Control Over Financial Reporting and on Compliance and on Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 11 SCHEDULE OF FINDINGS AND QUESTIONED COSTS Financial Statement Findings 13 Schedule of Prior Audit Findings 14

46 James Marta & Company Certified Public Accountants Accounting, Auditing, Consulting, and Tax INDEPENDENT AUDITORS' REPORT Governing Board and Measure A Citizens Oversight Committee Contra Costa Community College District Martinez, California We have audited the accompanying financial statements of the Contra Costa Community College District Building Fund 2006 Measure A, as of and for the fiscal year ended June 30, 2012, as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Building Fund 2006 Measure A Bond Funds of the Contra Costa Community College District at June 30, 2012, and the results of its operations for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1, the financial statements present only the Building Fund specific to the 2006 Measure A Bond Funds and are not intended to present fairly the financial position and results of operations of the Contra Costa Community College District in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2012, on our consideration of the District Building Fund's (2006 Measure A) internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in conjunction with this report in considering the results of our audit. James Marta & Company Certified Public Accountants December 10, Howe Avenue Suite E3, Sacramento, California Phone: (916) Fax: (916) jmarta@jpmcpa.com

47 BASIC FINANCIAL STATEMENTS

48 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A BALANCE SHEET JUNE 30, 2012 ASSETS Cash and cash equivalents 64,119,542 Accounts receivable 76,580 Due from other funds 174,582 Prepaid expenses 4,000 Total assets 64,374,704 LIABILITIES AND FUND BALANCE LIABILITIES Accounts payable 3,542,728 Due to other funds 1,036 Total liabilities 3,543,764 FUND BALANCE Restricted 60,830,940 Total liabilities and fund balance 64,374,704 The accompanying notes are an integral part of these financial statements. 2

49 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Investment income 342,934 Other local revenue 290,260 Total Revenues 633,194 EXPENDITURES Payroll and benefits 1,311,895 Books and supplies Services and operating expenditures 603,384 Capital Outlay 26,952,025 Total Expenditures 28,867,304 Excess of Revenue over (under) Expenditures (28,234,110) Fund Balance, Beginning of Year 89,065,050 Fund Balance, End of Year 60,830,940 The accompanying notes are an integral part of these financial statements. 3

50 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND (2006 MEASURE A) NOTES TO FINANCIAL STATEMENTS JUNE 30, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Contra Costa Community College District Building Fund 2006 Measure A conforms to accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants. The Contra Costa Community College District Building Fund 2006 Measure A accounts for financial transactions in accordance with the policies and procedures of the California College Budget and Accounting Manual. A. REPORTING ENTITY The Contra Costa Community College District (the "District") is a public educational agency operating under the applicable laws and regulations of the State of California It is governed by a five member Governing Board elected by registered voters of the District, which comprises an area in Contra Costa County. The District was established in 1949 and serves students in posteducation. These financial statements were prepared to comply with the requirements of proposition 39 related to the 55% voter approval requirements for bond issues and include only the Building Fund 2006 Measure A established to account for the expenditures of the general obligation bonds approved on March 6, These financial statements are not intended to present fairly the complete financial position and results of operations of the Contra Costa Community College District in conformity with generally accepted accounting principles. The Committee s oversight goals include ensuring expenditures are within the language of the ballot measure and advising the District s Governing Board on various projects. The citizens' oversight committee must include, among others, representation of a bona fide taxpayers association, a business organization and a senior citizens organization. No district employees or vendors are allowed to serve on the citizens' oversight committee. The financial statements presented are for the individual Measure A General Obligation Bond Building Fund and are not intended to be a complete presentation of the District s financial position or results of operations. B. FUND ACCOUNTING The accounts of the District are organized on the basis of funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of selfbalancing accounts that comprise its assets, liabilities, fund equity or retained earnings, revenues, and expenditures or expenses, as appropriate. District resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The proceeds from the sale of general obligation bonds and the subsequent expenditure of the bond funds are accounted for in the Building fund of the District. Any premium received from the sale of the bonds is deposited in the Bond and Interest Redemption fund of the District. The Measure A Bond Building Fund forms part and not all of the net assets in the District s Building Fund which contains other sources of funding. 4

51 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 C. ACCOUNTING POLICIES The District prepares its financial statements in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of Certified Public Accountants (AICPA) and complies with the policies and procedures of the California College Budget and Accounting Manual. The District is also required to follow the pronouncements of the Financial Accounting Standards Board (FASB) issued through November 30, 1989 (when applicable) that do not conflict with or contradict GASB pronouncements. In addition, the District has the option to apply FASB pronouncements issued after that date to businesstype activities and enterprise funds, if applicable. The District does not currently have any business activities or enterprise funds that require the District to follow the pronouncement of the FASB. D. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurement made, regardless of the measurement focus applied. The financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. On a modified accrual basis, revenue is recorded in the fiscal year in which the resources are measurable and become available. Available means the resources will be collected within the current fiscal year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal year. For the District, available means collectible within the current period or within 60 days after yearend. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. E. BUDGETS AND BUDGETARY ACCOUNTING Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. By state law, the District's governing board must adopt a final budget no later than July 1. A public hearing must be conducted to receive comments prior to adoption. The District's governing board satisfied these requirements. F. ENCUMBRANCES Encumbrance accounting is used in all budgeted funds to reserve portions of applicable appropriations for which commitments have been made. Encumbrances are recorded for purchase orders, contracts, and other commitments when they are written. Encumbrances are liquidated when the commitments are paid. All encumbrances are liquidated at June 30. 5

52 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 G. DEPOSITS AND INVESTMENTS The District is considered to be an involuntary participant in an external investment pool as the District is required to deposit all receipts and collections of monies with their County Treasurer (Education Code Section 41001).The County is authorized to deposit cash and invest excess funds by California Government Code Section et seq. The District is authorized under California Government Code to make direct investments in local agency bonds, notes, or warrants within the State; U.S. Treasury instruments; registered State warrants or treasury notes; securities of the U.S. Government, or its agencies; bankers acceptances; commercial paper; certificates of deposit placed with commercial banks and/or savings and loan companies; repurchase or reverse repurchase agreements; medium term corporate notes; shares of beneficial interest issued by diversified management companies; certificates of participation; obligations with first priority security; and collateralized mortgage obligations. Investments with original maturities greater than one year are stated at fair value. Fair value is estimated based on quoted market prices at yearend. All investments not required to be reported at fair value are stated at cost or amortized cost. H. CAPITAL AND LONGTERM DEBT The accounting and reporting treatment applied to the capital assets and longterm liabilities associated with the General Obligation Bond Fund is accounted for on a spending or financial flow measurement focus. This means that only current assets and liabilities are generally included on the balance sheet. The reported fund balances is considered a measure of available spendable resources. Thus, the capital assets and longterm liabilities associated with the Measure A General Obligation Bond Fund are accounted for in the basic financial statements of the District. I. FUND BALANCES GOVERNMENTAL FUNDS Fund balances of the governmental funds are classified as follows: Nonspendable amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact. Restricted amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments. Committed amounts that can be used only for specific purposes determined by a formal action of the governing board. The governing board is the highest level of decisionmaking authority for the District. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by the governing board. 6

53 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 I. FUND BALANCES GOVERNMENTAL FUNDS (continued) Assigned amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Under the District's adopted policy, only the governing board or chief business officer may assign amounts for specific purposes. Unassigned all other spendable amounts. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the District considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the District considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the governing board has provided otherwise in its commitment or assignment actions. J. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. K. NEW ACCOUNTING PRONCOUNCEMENTS In November 2010, the GASB issued GASB Statement No. 61, The Financial Reporting Entity: Omnibusan amendment of GASB Statements No. 14 and No. 34. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14, The Financial Reporting Entity, and the related financial reporting requirements of Statement No. 34, Basic Financial Statementsand Management's Discussion and Analysisfor State and Local Governments, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements. The provisions of this Statement are effective for financial statements for periods beginning after June 15, Earlier application is encouraged. 7

54 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, CASH AND INVESTMENTS Cash and investments as of June 30, 2012 consist of the following: Cash in county treasury 40,380,524 Local agency investment fund 23,739,018 Total Cash and Equivalents 64,119,542 A. County in County Treasury Cash in County Treasury consists of District cash held by the Contra Costa County Treasury that is invested in the county investment pool. The Treasury permits negative cash balances so long as the District s total cash in county treasury has a positive balance. The fair value of the District's investment in the pool is reported in the financial statements at amounts that are based upon the District's prorata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to the amortized cost of that portfolio). The weighted average maturity of the pool is 151 days. The pool is rated AAAf by Standard and Poor s. B. Local Agency Investment Fund (LAIF) The District may also invest in the State of California s Local Agency Investment Fund (LAIF) administered by the State Treasurer. California law restricts the Treasurer to investments in the following categories: U.S. Government securities, securities of federally sponsored agencies, domestic corporate bonds, interest bearing time deposits in California banks and savings and loan associations, primerated commercial paper, repurchase and reverse repurchase agreements, security loans, banker s acceptances, negotiable certificates of deposit and loans to various bond funds. Investments in LAIF are highly liquid, as deposits can be converted to cash within twentyfour hours without loss of interest or principal. The full faith and credit of the State of California secure investments in LAIF. LAIF has a weighted average maturity of 237 days. LAIF is currently unrated as to credit risk. LAIF investments are audited annually by the Pooled Money Investment Board and the State Controller s Office. Copies of this audit may be obtained from the State Treasurer s Office, 915 Capitol Mall, Sacramento, CA The Pooled Money Investment Board has established policies, goals and objectives to make certain that their goal of safety, liquidity, and yield are not jeopardized and that prudent management prevails. LAIF has a continuing audit process throughout the year. The State Controller s Office, as well as an inhouse audit process involving three separate divisions, audits all investments on a daily basis. Interest Rate Risk. Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an investment. Generally, as the length of the maturity of an investment increases, the greater the sensitivity of its fair value to changes in market interest rates. The District manages its exposure to interest rate risk by investing in the County Treasury that purchases a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 8

55 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, CASH AND INVESTMENTS Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measure by the assignment of a rating by a nationally recognized statistical rating organization. The Building Fund 2006 Measure A only invests in County Pooled Investment Funds which are not required to be rated. Custodial Credit Risk Deposits This is the risk that in the event of a bank failure, the Building Fund 2006 Measure A or District's deposits may not be returned to it. The Building Fund 2006 Measure A does not have any deposits subject to custodial credit risk. 3. ACCOUNTS RECEIVABLE Accounts receivable at June 30, 2012, consists of interest receivable of 76, INTERFUND TRANSACTIONS Interfund receivables/payables (Due To/Due From) As of June 30, 2012, the Building Fund 2006 Measure A has an amount of 174,582 due from other capital project funds. In addition, the Building Fund 2006 Measure A owes 1,036 to other capital project funds due to small expense transfers done at year end. 5. ACCOUNTS PAYABLE Accounts payable at June 30, 2012, consists of the following: Vendor payables 3,538,728 Construction retention 4,000 Total accounts payable 3,542, MEASURE A GENERAL OBLIGATION BONDS On November 7, 2000, California voters approved Proposition 39, the Smaller Classes, Safer Schools and Financial Accountability Act. Proposition 39 amended portions of the California Constitution to provide for the issuance of general obligation bonds by school districts, community college districts, or county offices of education, for the construction, reconstruction, rehabilitation, or replacement of school facilities, including the furnishing and equipping of school facilities, or the acquisition or lease of rental property for school facilities. The Bonds were issued in the amount of 286,500,000 The Bonds are payable from the proceeds of ad valorem property taxes which the Board of Supervisors of Contra Costa County are obligated to levy and collect on all taxable property in the District for the payment of the accreted value or conversion value of and interest on the Bonds. 9

56 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A NOTES TO FINANCIAL STATEMENTS JUNE 30, FUND BALANCES The entire fund balance is restricted for specific capital projects of the District. 8. COMMITMENTS AND CONTINGENCIES As of June 30, 2012, the Building Fund 2006 Measure A had the following commitments with respect to unfinished capital projects: Capital Project Remaining Contract Commitment Contra Costa College Athletic Field 37,727 Construction Management 39,275 Infrastructure Improvements 293,387 New College Center 401,784 Seismic Retrofit Various Buildings 1,631 Diablo Valley College Commons Area Development 29,158,952 Softball & Baseball Field Renovation 38,150 Student Services Center 1,100,842 Los Medanos College New Brentwood Center 36,367 Nursing/EMT Remodel 349,110 District Office IT Infrastructure 8,474,258 Monitoring Base Commissioning 37,220 DistrictWide Energy Conservation Study 5,674 Master Plan 18,656 39,993, SUBSEQUENT EVENTS District management evaluated its June 30, 2012 financial statements for subsequent events through December 10, 2012, the date these financial statements were available to be issued. Management is not aware of any subsequent events that would require recognition or disclosure in the financial statements. 10

57 INDEPENDENT AUDITORS' REPORT

58 James Marta & Company Certified Public Accountants Accounting, Auditing, Consulting, and Tax INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Governing Board and Citizens Oversight Committee Contra Costa Community College District Martinez, California We have audited the accompanying financial statements of the Contra Costa Community College District (the District) Building Fund (2006 Measure A), as of and for the year ended June 30, 2012, and have issued our report thereon dated December 10, We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of Contra Costa Community College District is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Contra Costa Community College District Building Fund s (2006 Measure A) internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Contra Costa Community College District Building Fund s (2006 Measure A) internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Contra Costa Community College District Building Fund s (2006 Measure A) internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above Howe Avenue, Suite E3, Sacramento, CA (916) fax (916) jmarta@jpmcpa.com

59 Compliance and Other Matters As part of obtaining reasonable assurance about whether Contra Costa Community College District Building Fund s (2006 Measure A) financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the governing board, management, and the 2006 Measure A Citizen Oversight Committee, and is not intended to be and should not be used by anyone other than these specified parties. James Marta & Company Certified Public Accountants December 10,

60 SCHEDULE OF FINDINGS AND QUESTIONED COSTS

61 No matters were reported. CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND (2006 MEASURE A) FINANCIAL STATEMENT FINDINGS JUNE 30,

62 CONTRA COSTA COMMUNITY COLLEGE DISTRICT BUILDING FUND 2006 MEASURE A SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS JUNE 30, 2012 No matters were reported. 14

63 CONTRA COSTA COMMUNITY COLLEGE DISTRICT Measure A 2002 and Measure A 2006 Bond Oversight Committee Quarterly Report January 16,

64 OVERVIEW 2002 Bond January 16,

65 Contra Costa Community College District 2002 Bond Program Allocation As of December 31, 2012 % Remaining Remaining Campus Allocation Expenses Projection After Projection of Allocation Projects Contra Costa College* 44,684,321 42,864,522 44,824,321 (140,000) *** 0% Diablo Valley College* 38,263,324 38,263,323 38,263,324 0% Los Medanos College 41,473,018 40,567,065 40,567, ,953 2% Total College Allocations 124,420, ,694, ,654, ,953 1% District Building Projects 676, , ,933 Program Allocation 4,706,393 4,706,391 4,706,393 Total Program 129,803, ,078, ,038, ,953 1% Approved Bond Revenue 120,000,000 Interest** 9,803,989 *Includes contingency and interest **Through December 31, 2012 ***Projected shortfall due to the Music Building increases will be covered by reprograming funds from the Parking Lot 16 project K:\Oversight Presentation\FY12.13\January 2013\2002 Bond projection & Expenses December

66 Contra Costa Community College District 2002 Bond Projects Completed As of December 31, 2012 Contra Costa College Project Project # Completion Date Bond Cost Vocational Technology Remodel C576 December ,788,062 ADA Path of Travel C501 May ,914 Perimeter Fencing C584 July ,316 Library Building Remodel C580 July ,883,920 ADA Improvements C520 August ,292 AA Roofing C522 July ,903 Remodel Student Activities C575 Deferred 1,072,165 Smart Classrooms C515 November ,183 Remodel Applied Arts Building C577 April ,642,750 Athletic Field ResurfacingPhase l (Partial) C605 May ,498 Student Service Center C572 June ,976,209 Art Building Seismic C578 Cancelled 332,865 Diablo Valley College Total 27,416,076 Project Project # Completion Date Bond Cost Life/Health Science Remodel D552 January ,679,638 Life Science Remodel for Labs D275 August ,398,395 Tech Education Swing Space D550 October ,106 Gas Line Replacement D525 June ,039 New Bookstore D551 October ,334,067 Tech Education Seismic Upgrade D272 August ,205 San Ramon Center D276 November ,506,168 Planetarium D570 January ,582,123 Commons Area Development (Partial) D611 November ,092 Repair and Renovation D501519, 590 November ,828,529 Project Admin/CM D599 November ,000 Remodel Student Activities D556 Cancelled 336,962 Los Medanos College Total 38,263,324 Project Project # Completion Date Bond Cost Planetarium L570 July ,005,795 Art Area Remodel L573 October ,359,600 Remodel College Complex L566 January ,583 Core Building Remodel L573 June ,680 Information Resource Center L274 February ,994,216 Math Building L565 C April ,861,589 Brentwood Expansion Phase 1 L567 April ,374 Science Building L565 B March ,669,778 Site Prep/New Quad Area L565 A April ,494,099 Brentwood Expansion Phase 2 L567 March ,645 Total 36,047,360 5

67 Contra Costa Community College District 2002 Bond Repair and Renovation Projects Completed As of December 31, 2012 Contra Costa College Project Project # Bond Cost Accessibility for Disabled ,714 Electrical Systems ,495 Safety Systems ,711 Campus Infrastructure ,460 Exterior Lighting ,716 Exterior Refinishing ,786 Grounds & Fields 507 1,082,690 Path & Roadway Repairs ,267 Roofing ,819 Signage ,195 Energy Management Systems ,166 HVAC Replacement ,704 Interior Refinishing ,123 Restrooms ,222 Tech & Network Wiring ,034 Window Replacement ,800 Planeterium Renovation ,851 Baseball Sunscreen ,776 Paving Rehabilitation ,377 BioScience HVAC ,967 Total 4,873,871 Diablo Valley College Project Project # Bond Cost Parking Island Landscaping ,358 Accessibility for Disabled ,800 Electrical Systems ,871 Safety Systems ,569 Campus Infrastructure ,307 Exterior Lighting ,568 Exterior Refinishing ,419 BFL Water Proofing ,114 Grounds & Fields ,230 Path & Roadway Repairs 508 1,568,590 Roofing ,914 Signage ,368 Energy Management Systems ,607 Hardware Replacement ,301 HVAC Replacement 513 2,905,845 Interior Refinishing ,050 Restrooms 516 (351) Tech & Network Wiring ,199 LHS Ceiling Replacement ,251 Window Replacement ,519 Total 9,828,528 Los Medanos College Project Project # Bond Cost Accessibility for Disabled ,271 Electrical Systems 502 5,248 Safety Systems ,746 Campus Infrastructure ,217 Exterior Lighting ,181 Exterior Refinishing ,939 Grounds & Fields ,434 Path & Roadway Repairs 508 2,160,906 Roofing ,408 Signage ,718 Energy Management Systems ,411 Hardware Replacement 512 7,481 HVAC Replacement ,409 Interior Lighting 514 5,263 Interior Refinishing ,157 Restrooms 516 2,794 Tech & Network Wiring ,975 Window Replacement ,079 Baseball Scoreboard (closed) ,067 Total 4,419,705 6

68 PROJECT CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 PROJECT DESCRIPTION: Install minor capital improvements and update, repair and replace aged building and site components for the District Office. PROJECT BUDGET g Budget Est At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 676, , , , , , , , ,933 PROJECT PROJECT BUDGET g Budget Est At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 833, , , , , , , , ,724 PROJECT PROJECT BUDGET g Budget Est At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 529, , , , , , , , ,401 PROJECT Repair and Renovation General Services Project # Project # PROJECT DESCRIPTION: Investment services bank charges and escrow charges O O901A Revenue Bond Expenses Project # O902A PROJECT DESCRIPTION: Bond issue expense Program Studies Project # O905A PROJECT DESCRIPTION: Programwide studies and reports such as California Environmental Quality Act (CEQA), Facility Assessment and Environmental Impact Report (EIR) reports. PROJECT BUDGET g Budget Est At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 1,420,947 1,420,947 1,420,947 1,420,947 1,420,947 1,420,947 1,420,946 1,420,946 1,420,946 7

69 PROJECT CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 Project Administration Project # O599A PROJECT DESCRIPTION: Provide administrative support for the 2002 Bond. PROJECT BUDGET g Budget Est At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 1,922,320 1,922,320 1,922,320 1,922,320 1,922,320 1,922,320 1,922,320 1,922,320 1,922,320 8

70 DO QUARTERLY REPORT OVERVIEW 2002 BUDGET ADJUSTMENTS Previous Oversight Current Oversight Budget Reason for Project Name Project # Funding Budget Budget Budget Changes Change Repair and Renovation O State Bond 676, ,933 Other General Services O901A State Bond 833, ,724 Other Revenue Bond Expenses O902A State Bond 529, ,401 Other Program Studies O905A State Bond 1,420,948 1,420,948 Other Project Administration O599A State Bond 1,922,320 1,922,320 Other NET CHANGE 9

71 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 Remodel Music Building Project # C581A PROJECT DESCRIPTION: The existing music building is being renovated to address seismic strengthening, general interior improvements and data systems upgrades. PROJECT SCHEDULE y Planned Completion: December 2012 PROJECT BUDGET y Budget Est. At Completion Variance 3% Paid to Date Budget Funding State Bond Other Total Funding 4,302,995 1,209,678 3,093,317 4,302,995 4,442,995 1,209,678 3,233,317 4,442,995 (140,000) (140,000) (140,000) 3,876,289 1,209,678 2,666,612 3,876,289 COMMENTS: Construction began in September Extensive hazardous material abatement, beyond what was initially expected, has significantly impacted the cost and schedule on this project. Final items remaining to complete are audio visual installation, security and irrigation. 501,519,583, PROJECT CCC Repair and Renovation Project # 585,587,588, 591, 610 PROJECT DESCRIPTION: Install minor capital improvements and update, repair and replace aged building and site components. Includes baseball field sun screen, bio science HVAC, planetarium, paving rehabilitation and utility upgrade. PROJECT SCHEDULE g Planned Completion: Ongoing PROJECT BUDGET g Budget Est. At Completion Variance 0.0% Paid to Date Budget Funding 5,712,496 5,712,497 (0) 5,712,496 State 87,385 87,385 87,385 Bond 5,618,697 5,618,698 (0) 5,618,698 Other 6,413 6,413 6,413 Total Funding 5,712,496 5,712,496 (0) 5,712,496 COMMENTS: There are no repair and renovation projects active at this time. 11

72 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 VA Building Renovation Project # C585 PROJECT DESCRIPTION: This cosmetic rehabilitation will add metal panel siding to the west and south side of the building to match metal panel siding added on the east end as part of the computer technology center remodel, will replace rollup doors, will replace the roof, and will paint the north side of the building, including window frames. PROJECT SCHEDULE g Planned Completion: October 2012 PROJECT BUDGET g Budget Est. At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 649, ,291 66, , , ,291 66, , , ,290 33, ,390 COMMENTS: Project to modify 4 rollup doors started in July In an effort to meet department's program needs, a fifth door was added and the schedule was extended from August to October. Doors are currently in operation. Only minor punch list items remain. PROJECT CCC Card Access Project # C523 PROJECT DESCRIPTION: Provide card access security for various buildings on CCC campus. PROJECT SCHEDULE g Planned Completion: May 2013 PROJECT BUDGET g Budget Est. At Completion Variance 0.0% Paid to Date Budget Funding State 205, ,000 30,771 Bond 29,838 29,838 29,839 Other 175, , Total Funding 205, ,000 30,771 COMMENTS: Additional scope was developed to include District, LMC and DVC card access upgrades. Project had been on hold pending approval of a new District standard for the controller software. Project is currently out for bid. Bids shall be received in December with construction start anticipated for the end of January

73 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 New College Center Project # C617 PROJECT DESCRIPTION: A new college complex consisting of the new student activities building, the new classroom building and the quad area. PROJECT SCHEDULE g Planned Completion: February 2016 PROJECT BUDGET g Budget Est. At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 4,756,544 1,902,746 2,853,798 4,756,544 4,756,544 1,902,746 2,853,798 4,756,544 4,501,365 1,902,746 2,598,620 4,501,365 COMMENTS: California Geological Survey office has completed and approved their review of the project for the modified seismic building zones. DSA has completed and approved the backcheck review of the construction documents. Additional reviews by Contra Costa County Health Department and West County Wastewater District are currently underway. Project is planned for bidding in January PROJECT CCC Parking Lot 16 Repair Project # C524 PROJECT DESCRIPTION: Review and provide engineering analysis and repair damaged parking lot 16. PROJECT SCHEDULE g Planned Completion: TBD PROJECT BUDGET g Budget Est. At Completion Variance 0.0% Paid to Date Budget Funding State 429, ,380 41,166 Bond 39,474 39,474 39,475 Other 389, ,906 1,691 Total Funding 429, ,380 41,166 COMMENTS: Design is in progress. This project will be held up prior to bid due to the projected budget shortfall on the Music building remodel project. 13

74 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 Gym Annex Elevator Project # C526 PROJECT DESCRIPTION: This project will add an elevator to the gym annex so students with disability can access the entire building. PROJECT SCHEDULE y Planned Completion: August 2013 PROJECT BUDGET g Budget Est. At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 500, , , , , ,000 31,877 31,877 31,877 COMMENTS: Lionakis Architects submitted 50% Construction Documents to the District at the end of November The fire alarm pathway is currently being evaluated. PROJECT CCC Project Admin/CM Project # C599 PROJECT DESCRIPTION: Provide fulltime onsite construction management services to coordinate and oversee construction projects on the campus throught design, construction and occupancy phases. PROJECT BUDGET r Budget Est. At Completion Variance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 799, , , , , , , , , ,900 73, ,477 COMMENTS: Project delays have extended the amount of time required to manage 2002 bond projects beyond what was originally anticipated at CCC. A budget adjustment has been made during this reporting period to add new interest received this period. 14

75 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 Campus Contingency Project # N/A PROJECT DESCRIPTION: Funds from projects that have been completed and financially closed out. PROJECT BUDGET g Budget Est. At Completion Variance 0.0% Paid to Date Budget Funding 0 0 State Bond Other Total Funding COMMENTS: All contingency funds have been transferred to the Music Building Remodel project. 15

76 2002 Bond Financial Summary December 31, 2012 Active Projects CCC 2002 Bond Budget Estimated at Completion Expenses Remodel Music Building 4,302,995 4,442,995 3,876,289 Repair and Renovation 5,625,110 5,625,111 5,625,111 VA Building Renovation 649, , ,390 Card Access 205, ,000 30,771 New College Center 4,756,544 4,756,544 4,501,365 Parking Lot 16 Repair 429, ,380 41,166 Project Admin/CM 799, , ,477 Campus Contingency 0 Gym Annex Elevator 500, ,000 31,877 Total Active Projects 17,268,244 17,408,245 15,448,446 Closed Projects ADA Path of Travel 836, , ,914 ADA Improvements 289, , ,292 Remodel Student Activities 1,072,165 1,072,165 1,072,165 Vocational Technology Remodel 5,788,062 5,788,062 5,788,062 Art Building Seismic 332, , ,865 Library Building Remodel 6,883,920 6,883,920 6,883,920 AA Roofing 332, , ,903 Smart Classrooms 417, , ,183 Remodel Applied Arts Bldg 1,642,750 1,642,750 1,642,750 Athletic Field Resurfacing Phase l (Partial) 629, , ,498 Student Service Center 8,976,209 8,976,209 8,976,209 Perimeter Fencing 214, , ,316 Total Closed Projects 27,416,076 27,416,077 27,416,077 Total 44,684,321 44,824,321 42,864,523 16

77 CCC QUARTERLY REPORT OVERVIEW 2002 BUDGET ADJUSTMENTS Previous Oversight Current Oversight Budget Reason for Project Name Project # Funding Budget Budget Budget Changes Change Remodel Applied Arts Bldg C577A State Bond 801, ,733 (0) Other 841, ,017 0 Remodel Music Building C581A State Bond 1,209,678 1,209,678 0 Other 3,093,317 3,093,317 (0) Repair and Renovation 501,519,583, 585,587,588, 591, State 87,385 87, Bond 5,618,697 5,618,697 (0) Other 6,413 6,413 0 VA Building Renovation C585 State 0 Bond 583, ,291 (0) Other 66,180 66,180 (0) Card Access C523 State 0 Bond 29,838 29,838 0 Other 175, ,162 0 New College Center C617 State 0 Bond 1,902,746 1,902,746 (0) Other 2,853,798 2,853,798 0 Parking Lot 16 Repair C524 State 0 Bond 39,474 39,474 0 Other 389, ,906 (0) Gym Annex Elevator C526 State 0 Bond 0 Other 500, ,000 0 Project Admin/CM C599 State 0 Bond 651, ,900 0 Other 144, ,844 3,371 Campus Contingency N/A State 0 Bond 0 Other 0 0 NET CHANGE 3,372 Interest received as of 12/30/2012 used to increase budget amount for this project. 17

78 2002 Bond Financial Summary December 31, 2012 Active Projects DVC 2002 Bond Budget Estimated at Completion Expenses Total Active Projects Closed Projects Tech Education Seismic Upgrade 158, , ,205 Life Science Remodel for Labs 1,398,395 1,398,395 1,398,395 San Ramon Center 9,506,168 9,506,168 9,506,168 Tech Education Swing Space 513, , ,106 New Bookstore 9,334,067 9,334,067 9,334,067 Commons Area Development (Pa 468, , ,092 Gas Line Replacement 108, , ,039 Life/Health Science Remodel 3,679,638 3,679,638 3,679,638 Planetarium & Museum 2,582,123 2,582,123 2,582,123 Repair and Renovation 9,828,529 9,828,529 9,828,529 Project Admin/CM 350, , ,000 Remodel Student Activities 336, , ,962 Total Closed Projects 38,263,324 38,263,324 38,263,324 Total 38,263,324 38,263,324 38,263,324 MEASURE A 2002 BOND PROGRAM FOR DVC IS CLOSED 19

79 PROJECT LMC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 PROJECT SCHEDULE g Planned Completion: Ongoing PROJECT BUDGET Budget Funding State Bond Other Total Funding Repair and Renovation Project # g L501518, L 521 PROJECT DESCRIPTION: Install minor capital improvements and update, repair, and replace aged building and site components. Includes baseball scoreboard. Budget Est. At CompletioVariance 0.0% Paid to Date 4,665,155 4,665,155 4,665, , , ,449 4,419,706 4,419,706 4,419,705 4,665,155 4,665,155 4,665,154 COMMENTS: There are no repair and renovation projects active at this time. PROJECT LMC Project Adm/CM Project # L599 PROJECT DESCRIPTION: Providing fulltime onsite construction management services to coordinate and oversee construction projects on campus throughout design, construction and occupancy phases. PROJECT BUDGET g Budget Est. At CompletioVariance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 100, , , , , , , , ,000 COMMENTS: 21

80 PROJECT LMC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2002 BOND DECEMBER 2012 Campus Contingency Project # N/A PROJECT DESCRIPTION: Funds from projects that have been completed and financially closed out. PROJECT BUDGET g Budget Est. At CompletioVariance 0.0% Paid to Date Budget Funding State Bond Other Total Funding 905, , , , , ,953 COMMENTS: The campus project manager is scoping some roof repair projects to apply to these funds. 22

81 2002 Bond Financial Summary December 31, 2012 LMC 2002 Bond Budget Estimated at Completion Expenses Active Projects Repair and Renovation 4,419,706 4,419,706 4,419,705 Project Adm/CM 100, , ,000 Campus Contingency 905,953 Total Active Projects 5,425,659 4,519,706 4,519,705 Closed Projects Information Resource Center 3,994,216 3,994,216 3,994,216 Art Area Remodel 1,359,600 1,359,600 1,359,600 Core Building Remodel 409, , ,680 Brentwood Center Phase 1 58,374 58,374 58,374 Brentwood Center Phase 2 86,645 86,645 86,645 Remodel College Complex 107, , ,583 Planetarium 1,005,795 1,005,795 1,005,795 Science Building 12,669,778 12,669,778 12,669,778 Math Building 2,861,589 2,861,589 2,861,589 Site Prep/New Quad Area 13,494,099 13,494,099 13,494,099 Total Closed Projects 36,047,359 36,047,359 36,047,359 Total 41,473,018 40,567,065 40,567,064 23

82 LMC QUARTERLY REPORT OVERVIEW 2002 BUDGET ADJUSTMENTS Previous Oversight Current Oversight Budget Reason for Project Name Project # Funding Budget Budget Budget Changes Change Repair and Renovation L501518, L521 State 245, ,449 Bond 4,419,706 4,419,706 Other Project Adm/CM L599 State Bond 100, ,000 Other Campus Contingency D611 State Bond Other 905, ,953 NET CHANGE 24

83 OVERVIEW 2006 Bond January 16,

84 Contra Costa Community College District 2006 Bond Program Allocation As of December 31, 2012 % Remaining Remaining Campus Allocation Expenses Projection After Projection of Allocation Projects Contra Costa College 85,633,334 4,733,467 85,633,334 0% Diablo Valley College 70,433,333 36,075,575 70,433,333 0% Los Medanos College 69,333,333 20,720,886 69,333,333 0% Total College Allocations 225,400,000 61,529, ,400,000 0% Districtwide Projects Energy Management 36,087,097 35,789,195 36,087,097 0% IT Infrastructure Upgrades 13,700,000 4,069,599 13,700,000 0% Program Allocation 26,312,903 8,112,404 26,312,903 0% Total Districtwide Projects 76,100,000 47,971,198 76,100,000 0% Program Allocation Total 301,500, ,501, ,500,000 0% Approved Bond Revenue 286,500,000 Additional Revenue Estimated Actual to Date Rebates 8,651,000 8,094,013 Interest 10,000,000 3,549,944 Total Additional Revenue 18,651,000 11,643,957 Total Program 305,151,000 Unallocated Revenue (estimated) 3,651,000 K:\Oversight Presentation\FY12.13\January 2013\2006 Bond Projection & Expenses December

85 Costra Costa College Project Project # Completion Date Bond Cost BioSci Remodel for Art N/A Cancelled New Science Bldg Planning C631 August ,211 Diablo Valley College Total 91,211 Project Project # Completion Date Bond Cost Athletic Fields D605 April ,766,668 Walnut Creek Real Estate Valuation D625 4,900 Soccer Field D627 October ,948 Parking Lot Repaving D621 June ,175,031 Los Medanos College Contra Costa Community College District 2006 Bond Projects Completed As December 31, 2012 Total 4,443,547 Project Project # Completion Date Bond Cost Athletic Fields L605 May ,950,743 Parking Lot B L626 June ,932 Total 3,936,675 District Project Project # Completion Date Bond Cost P415,416, Energy Management 417,607 January ,743,347 Total 35,743,347 27

86 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT Program Studies Project # P901, P902 PROJECT DESCRIPTION: Programwide studies and reports, Master Plans for each college and other studies that have a districtwide scope such as access control, utility mapping and other standards development initiatives. PROJECT BUDGET Planned Completion: Ongoing Budget Funding State Bond Other Total Funding PROJECT Budget Est. At Completion Variance 0% Paid to Date 3,000,000 3,000,000 2,296,617 3,000,000 3,000,000 2,296,617 3,000,000 3,000,000 2,296,617 Program and Project Management Project # P599A PROJECT DESCRIPTION: Provide administrative support for the 2006 Bond. Primarily labor at program level, and consultant services. PROJECT BUDGET Planned Completion: Ongoing Budget Funding State Bond Other Budget Est. At Completion Variance 0% Paid to Date 11,000,000 11,000,000 5,032,364 11,000,000 11,000,000 5,032,364 Total Funding PROJECT 11,000,000 11,000,000 5,032,364 Other Related Charges Project # P599B PROJECT DESCRIPTION: Expenses for office supplies, equipments, travel and conferences, software licenses and other special studies. PROJECT BUDGET Planned Completion: Ongoing Budget Funding State Bond Other Total Funding Budget Est. At Completion Variance 0% Paid to Date 1,700,000 1,700, ,279 1,700,000 1,700, ,279 1,700,000 1,700, ,279 28

87 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT Financing Fees Project # P925 PROJECT DESCRIPTION: Cost to issue bonds including bond counsel, financial adviser and paying agents. PROJECT BUDGET Budget Funding State Bond Other Total Funding PROJECT Budget Est. At Completion Variance 0% Paid to Date 1,100,000 1,100, ,987 1,100,000 1,100, ,987 1,100,000 1,100, ,987 Contingency Project # P999 PROJECT DESCRIPTION: Program wide contingency funds held in reserve for unforeseen cost increases. PROJECT BUDGET Budget Funding State Bond Other Total Funding PROJECT Budget Est. At Completion Variance 0% Paid to Date 8,700,000 8,700, , ,000 8,400,000 8,400,000 8,700,000 8,700,000 Districtwide Future Projects Project # N/A PROJECT DESCRIPTION: Excess funds that become available when district projects come in under budget. PROJECT BUDGET Budget Funding State Bond Other Total Funding Budget Est. At Completion Variance 0% Paid to Date 594, , , , , ,932 29

88 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT PROJECT DESCRIPTION: PROJECT BUDGET Budget Funding State Bond Other Total Funding PROJECT Districtwide Unallocated Funds Project # N/A Budget Est. At Completion Variance 0% Paid to Date 3,651,000 3,651,000 3,651,000 3,651,000 3,651,000 3,651,000 Monitoring Based Commissioning Project # P632 PROJECT DESCRIPTION: This project will adjust the mechanical system controls on various buildings to be more energy efficient. PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Funding State Bond Other Total Funding Budget Est. At Completion Variance 0% Paid to Date 343, ,750 45, , ,750 45, , ,750 45,848 COMMENTS: Electricity and gas metering is being installed at the San Ramon Campus. PROJECT Energy Conservation Study Project # P903 PROJECT DESCRIPTION: Professional Services for evaluating energy conservation measures Districtwide and help determine the feasibility and scope of individual projects, construction estimates, return on investment, submit rebate and loan application forms, help write bid specifications, and provide construction administration and commissioning as needed. PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Funding State Bond Other Total Funding Budget Est. At Completion Variance 0% Paid to Date 217, ,971 20, , ,971 20, , ,971 20,157 COMMENTS: Project is on hold due to staffing cuts. 30

89 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT IT Infrastructure Project # P609 PROJECT DESCRIPTION: IT upgrades Districtwide. PROJECT SCHEDULE Planned Completion: March 2014 PROJECT BUDGET Budget Funding State Bond Other Total Funding Budget Est. At Completion Variance 0% Paid to Date 13,700,000 13,700,000 4,069,599 12,500,000 12,500,000 4,069,599 1,200,000 1,200,000 13,700,000 13,700,000 4,069,599 COMMENTS: Work is underway at the District Office building and at DVC. 31

90 DO QUARTERLY REPORT OVERVIEW BUDGET ADJUSTMENTS 2006 BOND Previous Oversight Current Oversight Budget Reason for Project Name Project # Funding Budget Budget Budget Changes Change IT Infrastructure P609 State Bond 12,500,000 12,500,000 Other 1,200,000 1,200,000 Monitoring Based Commissioning P632 State Bond 343, ,750 Other Program Studies P901, P902 State Bond 3,000,000 3,000,000 Other Program and Project Management P599A State Bond 11,000,000 11,000,000 Other Financing Fees P925 State Bond 1,100,000 1,100,000 Other Other Related Charges P599B State Bond 1,700,000 1,700,000 Other Contingency P999 State Bond 300, ,000 Other 8,400,000 8,400,000 Energy Conservation Study P903 State Bond 217, ,971 Other Districtwide Future Projects N/A State Bond 602, ,015 Other NET CHANGE 32

91 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT SCHEDULE Planned Completion: July 2013 PROJECT BUDGET Budget Est. At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 3,305,950 3,305,950 3,305,950 3,305,950 3,305,950 3,305,950 2,965,759 2,965,759 2,965,759 COMMENTS: This project is funded by the 2006 bond with an additional 629,498 from the 2002 bond to supplement the project funding. A separate design package has been developed for the ADA and Fire and Life Safety required improvements to the concession, restroom and storage areas. Phase ll was being held up by a 1974 pool project that was not certified as Field Act compliant when it was completed. The pool project was finally certified this year. Phase II bids were received in December 2012 with an anticipated construction start of January PROJECT CCC Athletic Field Project # C605 PROJECT DESCRIPTION: Work consists of demolition and resurfacing of the track and football field, associated grading and concrete flatwork, track events, fencing and landscaping. Site work includes placement of electrical and low voltage infrastructure for future work. Physical Education Annex Renovation Project # C608 PROJECT DESCRIPTION: The building will be remodeled to provide a modern circuit training laboratory/exercise facility, aerobics, and other physical fitness and wellness instructional spaces. Improvements include utility infrastructure, ADA code improvements and restroom renovations. PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Est. At Completion Variance 0% Paid to Date Budget Funding State 9,235,000 3,792,000 9,235,000 3,792,000 45,118 Bond 5,443,000 5,443,000 45,118 Other Total Funding 9,235,000 9,235,000 45,118 COMMENTS: This project was previously approved for funding by the California Community College System Office Facilities Planning Unit. However, due to lack of a state bond on the November 2010 election ballot to fund this project, the project was resubmitted for consideration in the 2012/2013 funding year. The State Chancellor's Office recently moved the earliest funding fiscal year to 2014/15. 33

92 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 New College Center Project # C617 PROJECT DESCRIPTION: A new college complex consisting of the new student activities building, the new classroom building and the quad area. PROJECT SCHEDULE Planned Completion: February 2016 PROJECT BUDGET Budget Est. At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 67,618,950 67,618,950 67,618,950 67,618,950 67,618,950 67,618, , , ,526 COMMENTS: California Geological Survey office has completed and approved their review of the project for the modified seismic building zones. DSA has completed and approved the backcheck review of the construction documents. Additional reviews by Contra Costa Health Department and West County Wastewater District are currently underway. Project is planned for bidding in January PROJECT CCC ADA Improvement Projects Project # N/A PROJECT DESCRIPTION: A budget line item in the Bond program has been established on each campus and funding has been allocated for future projects to remove barriers to access that were identified in an American with Disability Act study and transition plan. PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Est. At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 528, , , , , ,551 COMMENTS: Campus and District staff are currently reviewing the transition plans and developing a list of access barrier removal projects. After draft project lists are complete, they will be taken to the college councils for review and consensus when faculty return from summer break. 34

93 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 Infrastructure Improvements Project # C587 PROJECT DESCRIPTION: Bond funding has been allocated for various projects to upgrade aging infrastructure such as utilities and parking lots. A portion of the 12 KV high voltage upgrade is funded under this project. PROJECT SCHEDULE Planned Completion: December 2012 PROJECT BUDGET Budget Est. At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 1,350,938 1,350,938 1,350,938 1,350,938 1,350,938 1,350, , , ,668 COMMENTS: Electrical tiein of new PG&E service was completed in June. Energizing of new switchgear was completed in July. Switchgear enclosure was completed at the end of November Remaining punch list items shall be completed by the end of December PROJECT CCC PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Funding State Bond Other Seismic Retrofit Various Buildings Project # C633 PROJECT DESCRIPTION: This project will seismically retrofit several buildings on campus. There are no modernization or upgrades associated with this work. Budget Est. At Completion Variance 0% Paid to Date 2,300,000 2,300,000 22,620 2,300,000 2,300,000 22,620 Total Funding 2,300,000 2,300,000 22,620 COMMENTS: The contract for the design effort to retrofit several buildings at Contra Costa College was approved by Governing Board on July 27, Engineers are gathering data and will be meeting with user groups soon. 35

94 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT CCC AA Renovation 2015 Project # N/A PROJECT DESCRIPTION: Remodel of various spaces in the AA Building including culinary and administrative offices, which will be vacated following completion of the new college center project. PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Est. At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 2,340,000 2,340,000 2,340,000 2,340,000 2,340,000 2,340,000 COMMENTS: Planned renovation when occupants relocate to the new Student Activities building in PROJECT CCC Campus Project Admin/CM Project # C599 PROJECT DESCRIPTION: Providing fulltime onsite construction management services to coordinate and oversee construction projects on campus throughout design, construction and occupancy phases. PROJECT BUDGET Budget Est. At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 1,700,000 1,700,000 1,700,000 1,700,000 1,700,000 1,700, , , ,565 COMMENTS: 36

95 PROJECT CCC CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 Future Projects Project # C999 PROJECT DESCRIPTION: Funding for projects in early preliminary planning which have had no expenses yet. PROJECT BUDGET Budget Est. At Completion Variance 0% Paid to Date Budget Funding State 954, ,734 Bond 954, ,734 Other Total Funding 954, ,734 COMMENTS: 37

96 2006 Bond Financial Summary December 31, 2012 CCC 2006 Bond Budget Estimated at Completion Expenses Active Projects Athletic Field 3,305,950 3,305,950 2,965,759 Physical Education Annex Renovation 5,443,000 5,443,000 45,118 College Center 67,618,950 67,618, ,526 ADA Improvement Projects 528, ,551 Infrastructure Improvements 1,350,938 1,350, ,668 AA Renovation ,340,000 2,340,000 Seismic Retrofit Various Buildings 2,300,000 2,300,000 22,620 Campus Project Admin/CM 1,700,000 1,700, ,565 Future Projects 954, ,734 Active & Future Projects 85,542,123 85,542,123 4,642,256 Closed Projects New Science Bldg Planning 91,211 91,211 91,211 Total Closed Projects 91,211 91,211 91,211 Total 85,633,334 85,633,334 4,733,467 38

97 CCC QUARTERLY REPORT OVERVIEW BUDGET ADJUSTMENTS 2006 BOND Previous Oversight Current Oversight Budget Reason for Project Name Project # Funding Budget Budget Budget Changes Change Athletic Field C605 State Bond 3,305,950 3,305,950 Other Physical Education Annex Renovation C608 State 3,792,000 3,792,000 Bond 5,443,000 5,443,000 Other New College Center C617 State Bond 67,618,950 67,618,950 Other ADA Improvement Projects N/A State Bond 528, ,551 Other Infrastructure Improvements C587 State Bond 1,350,938 1,350,938 Other Campus Project Admin/CM C599 State Bond 1,700,000 1,700,000 Other Future Projects C999 State Bond 954, ,734 Other Seismic Retrofit Various Buildings C633 State Bond Other 2,300,000 2,300,000 AA Renovation 2015 N/A State Bond 2,340,000 2,340,000 Other NET CHANGE 39

98 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT DVC Commons Area Development Project # D611 PROJECT DESCRIPTION: New buildings and site improvements for culinary arts program, food services, all student services functions and a new central commons area. PROJECT SCHEDULE Planned Completion: January 2015 PROJECT BUDGET Budget Est At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 53,151,938 51,551,938 1,600,000 53,151,938 53,151,938 51,551,938 1,600,000 53,151,938 30,713,609 30,257, ,553 30,713,609 COMMENTS: Phase 2, the new Student Services Center, is completed and occupied. Phase 3, abatement and demolition of the old Student Services Building is underway. PROJECT DVC Engineering Techonology Project # D628 PROJECT DESCRIPTION: This project renovates the entire Engineering Technology building to upgrade technology space and to support new technology programs. PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Est At Completion Variance 0% Paid to Date Budget 20,827,000 20,827,000 State Bond Other Total Funding 10,646,000 10,646,000 9,533,852 9,533, , ,148 20,827,000 20,827,000 COMMENTS: This project was previously approved for funding by the California Community College System Office Facilities Planning Unit. However, due to lack of a state bond on the November 2010 election ballot to fund this project, the project was resubmitted for consideration in the 2012/2013 funding year. The State Chancellor's Office recently moved the earliest funding fiscal year to 2014/15. 41

99 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT DVC PE Building/Gym/Locker Renovation Project # N/A PROJECT DESCRIPTION: Renovate physical education spaces. PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Est At Completion Variance Paid to Date Budget Funding State Bond Other Total Funding 608, , , , , ,159 COMMENTS: Future project in very early planning stages. Scope will be dependent upon amount of funding used by other projects. PROJECT DVC Ball Field Restoration Project # D634 PROJECT DESCRIPTION: Renovation and upgrade of softball and baseball field components such as dugouts, bleachers, and backstops. PROJECT SCHEDULE Planned Completion: November 2013 PROJECT BUDGET Budget Funding State Bond Other Total Funding Budget Est At Completion Variance Paid to Date 1,500,000 1,500, ,931 1,500,000 1,500, ,931 1,500,000 1,500, ,931 COMMENTS: Verde Design has provided the design documents for the softball and baseball field improvements. The project has been approved by the Division of State Architect. The project was bid in May All bids were above the construction budget. The project will be rebid in January 2013 hoping that more competitive bids come in. Construction would begin in June

100 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT DVC ADA Improvement Projects Project # N/A PROJECT DESCRIPTION: A budget line item in the Bond program has been established on each campus and funding has been allocated for future projects to remove barriers to access that were identified in an American with Disability Act study and transition plan. PROJECT SCHEDULE Planned Completion: TBD PROJECT BUDGET Budget Est At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 527, , , , , ,744 COMMENTS: Campus and District staff have reviewed the transition plans and the campus has developed a preliminary list of access barrier removal projects. They have initially selected a project to make the four bathrooms in the LA building accessible. A request for qualifications to be used to select an architect firm is now being developed. PROJECT DVC Campus Project Admin/CM Project # D599 PROJECT DESCRIPTION: Providing fulltime onsite construction management services to coordinate and oversee construction projects on campus throughout design, construction and occupancy phases. PROJECT BUDGET Budget Est At Completion Variance 0% Paid to Date Budget Funding State 1,200,000 1,200, ,489 Bond 1,200,000 1,200, ,489 Other Total Funding 1,200,000 1,200, ,489 COMMENTS: 43

101 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT DVC Future Projects Project # D999 PROJECT DESCRIPTION: Funding for projects in early preliminary planning which have had no expenses yet. PROJECT BUDGET Budget Est At Completion Variance Paid to Date Budget Funding State 468, ,092 Bond 468, ,092 Other Total Funding 468, ,092 COMMENTS: 44

102 2006 Bond Financial Summary December 31, 2012 DVC 2006 Bond Budget Estimated at Completion Expenses Active Projects Commons Area Development 52,151,938 52,151,938 30,713,609 Engineering Technology 9,533,852 9,533,852 ADA Improvement Projects 527, ,744 PE Building/Gym/Locker Renovation 608, ,159 Ball Field Restoration 1,500,000 1,500, ,931 Campus Project Admin/CM 1,200,000 1,200, ,489 Future Projects 468, ,092 Total Active Projects 65,989,785 65,989,785 31,632,028 Closed Projects Athletic Fields 2,766,669 2,766,669 2,766,668 Parking Lot Repaving 1,175,031 1,175,031 1,175,031 Soccer Field Renovation 496, , ,948 Walnut Creek Real Estate Valuation 4,900 4,900 4,900 Total Closed Projects 4,443,548 4,443,548 4,443,547 Total 70,433,333 70,433,333 36,075,575 45

103 DVC QUARTERLY REPORT OVERVIEW BUDGET ADJUSTMENTS 2006 BOND Previous Oversight Current Oversight Budget Reason for Project Name Project # Funding Budget Budget Budget Changes Change Commons Area Development D611 State Bond 51,556,187 51,551,938 (4,249.41) Partial project expenses were covered under 2002 Bond Other 1,600,000 1,600,000 Engineering Techonology D628 State 10,646,000 10,646,000 Bond 9,533,852 9,533,852 Other 647, ,148 PE Building/Gym/Locker Renovation N/A State Bond 608, ,159 Other Ball Field Restoration D634 State Bond Other 1,500,000 1,500,000 ADA Improvement Projects N/A State Bond 527, ,744 Other Campus Project Admin/CM D599 State Bond 1,200,000 1,200,000 Other Future Projects D999 State Partial project expenses for Commons Area Development were Bond 463, ,092 4, covered under 2002 Bond thus creating a contingency amount for Other 2006 Bond. NET CHANGE 0 46

104 CONTRA COSTA COMMUNITY COLLEGE DISTRICT QUARTERLY PROJECT REPORT 2006 BOND DECEMBER 2012 PROJECT LMC Student Services Project # L612 PROJECT DESCRIPTION: Remodel of 27,920 sq.ft. of college complex now containing all of admissions, administration, nursing, business services and central services to accommodate student services. Project to include all architectural and engineering work, DSA coordination, construction and inspections. PROJECT SCHEDULE Planned Completion: June 2015 PROJECT BUDGET Budget Est At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 25,309,363 24,309,363 1,000,000 25,309,363 25,309,363 24,309,363 1,000,000 25,309,363 4,963,648 4,963,648 4,963,648 COMMENTS: Project was bid in November and contract awarded in December Interim Swing Space remodel projects are 100% completed for spaces in support of the Student Services Remodel project. All Swing Space projects are in Closeout Phase. The schedule is being revised to reflect delay stemming from the nurse project. PROJECT LMC Nursing /EMT Remodel Project # L614 PROJECT DESCRIPTION: Planning, design and construction for the renovation of LMC's nursing complex to accommodate the relocated and expanded nursing and EMT program functions. PROJECT SCHEDULE Planned Completion: June 2012 PROJECT BUDGET Budget Est At Completion Variance 0% Paid to Date Budget Funding State Bond Other Total Funding 5,662,234 5,662,234 5,662,234 5,662,234 5,662,234 5,662,234 5,553,817 5,553,817 5,553,817 COMMENTS: Construction is 100% completed. The Nursing and EMT departments have moved into the newly renovated spaces and are in operation. The project is in Closeout Phase. Additional work requested by College staff beyond original contract is in progress. This project came in over 700,000 under budget. 47