COUNTY OF VICTORIA TEXAS 2009.pdf · COUNTY OF VICTORIA TEXAS ... Balance Sheet Statutory Basis...

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COUNTY OF VICTORIA TEXASCOMPREHENSIVE ANNUAL FINANCIAL REPORT

For the year ended December 31 2009

Prepared by County AuditorsOfficeJudy McAdams CPA

Victoria County Auditor

COUNTY OF VICTORIA TEXASCOMPREHENSIVE ANNUAL FINANCIAL REPORT


TABLE OF CONTENTS

Page

INTRODUCTORY SECTION

County AuditorsLetter of Transmittal iOrganizationalChart v

Directory of Principal Officials vi

FINANCIAL SECTION

Independent Auditors Report 1

ManagementsDiscussion and Analysis 3

Basic Financial Statements

Governmentwide Financial Statements

Statement of Net Assets Statutory Basis 13

Statement of Activities Statutory Basis 15

Fund Financial Statements

Balance Sheet Statutory Basis Governmental Funds 17

Reconciliation of Total Governmental Fund Balance to Net Assets of

Governmental Activities Statutory Basis 18

Statement of Revenues Expenditures and Changes in Fund BalancesStatutory Basis Governmental Funds 19

Reconciliation of the Governmental Funds Statement of Revenues Expendituresand Changes in Fund Balances to Statement of Activities Statutory Basis 20

Statement of Net Assets Statutory Basis Proprietary Funds 21

Statement of Revenues Expenses and Changes in Fund Net AssetsStatutory Basis Proprietary Funds 22

Statement of Cash Flows Statutory Basis Proprietary Funds 23

Statement of Fiduciary Net Assets Fiduciary Funds 25

Statement of Changes in Fiduciary Net Assets Fiduciary Funds 26

Statement of Net Assets Component Units 27

Statement of Activities Component Units 28

Notes to Financial Statements 30

Required Supplementary Information

Schedule of Revenues Expenditures and Changes in Fund BalanceBudget and Actual General Fund Statutory Basis 71

Notes to Required Supplementary Information 72

Combining and Individual Fund Statements and Schedules

Governmental Funds

Combining StatementsCombining Balance Sheet Statutory Basis All Nonmajor Governmental Funds 73

TABLE OF CONTENTSContinued

FINANCIAL SECTION Continued

Combining and Individual Fund Statements and Schedules Continued

Page

Governmental Funds ContinuedCombining Statements Continued

Combining Statement of Revenues Expenditures and Changes in FundBalances Statutory Basis All Nonmajor Governmental Funds 74

Nonmajor Special Revenue Funds 75

Combining Balance Sheet Statutory Basis All NonmajorSpecial Revenue Funds 80

Combining Statement of Revenues Expenditures and Changesin Fund Balance Statutory Basis All Nonmajor Special Revenue Funds 81

Combining Balance Sheet Statutory Basis Nonmajor Road andBridge Special Revenue Funds 82

Combining Statement of Revenues Expenditures and Changesin Fund Balance Statutory Basis Nonmajor Road and BridgeSpecial Revenue Funds 83

Combining Balance Sheet Statutory Basis Nonmajor OtherSpecial Revenue Funds 84

Combining Statement of Revenues Expenditures and Changesin Fund Balance Statutory Basis Nonmajor Other Special Revenue Funds 91

Individual Statements and SchedulesGeneral Fund

Schedule of Revenues Expenditures and Changes in FundBalance Budget NonGAAP Basis and Actual 98

Nonmajor Special Revenue FundsRoad and Bridge Precinct No 1

Schedule of Revenues Expenditures and Changes in FundBalance Budget and Actual Statutory Basis 106

Road and Bridge Precinct No 2Schedule of Revenues Expenditures and Changes in Fund

Balance Budget and Actual Statutory Basis 107





Nonmajor Debt Service FundSchedule of Revenues Expenditures and Changes in Fund

Balance Budget and Actual 110

Fiduciary FundsAgencyFunds 111

Combining Statement of Changes in Assets and Liabilities 112

TABLE OF CONTENTS

Continued

Page

STATISTICAL SECTION 115

Financial Trends

Net Assets by Component 116

Changesin Net AssetsI118

Fund Balances Governmental Funds 122

Changes in Fund Balances Governmental Funds 124

Tax Revenues by Source Governmental Funds 126

Revenue Capacity

Assessed and Estimated Actual Value of Taxable Property General and I S 127

Assessed and Estimated Actual Value of Taxable Property Road and Bridge 129

Direct and Overlapping Property Tax Rates 131

Principal Property Taxpayers Unaudited 133

Property Tax Levies and Collections General and I S 134

Property Tax Levies and Collections Road and Bridge 136

SalesTax Revenue 138

Direct and Overlapping Sales Tax Rates 139

Debt Capacity

Ratios of Outstanding Debt by Type 140

Ratios of Net General Bonded Debt Outstanding 141

Direct and Overlapping Governmental Activities Debt Unaudited 142

Legal Debt Margin Information 143

Demographic and Economic Information

Demographic and Economic Statistics Unaudited 145

Principal Employers Unaudited 146

TABLE OF CONTENTS

Continued

STATISTICAL SECTION Continued

Operating Information

FullTime Equivalent City Governmental Employees by Function Program

Operating Indicators by Function Program

Capital Asset Statistics by Function Program

SINGLE AUDIT SECTION

Report on Internal Control Over Financial Reporting and onCompliance and Other Matters Based on an Audit Of FinancialStatements Performed in Accordance With Government AuditingStandards

Report on Compliance With Requirements Applicable to EachMajor Program and Internal Control Over Compliance inAccordance With OMB Circular A133

Schedule of Expenditures of Federal and State Awards

Notes to Schedule of Expenditures of Federal and State Awards

Schedule of Findings and Questioned Costs

Schedule of Prior Audit Findings

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INTRODUCTORY SECTION

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JUDY McADAMS CPACOUNTY AUDITOR

VICTORIA COUNTY TEXAS

115 N Bridge Room 122Victoria Texas 77901

June 11 2010

Honorable District JudgesHonorable County JudgeHonorable County CommissionersCounty of VictoriaVictoria Texas

Tel 3615758451Fax 3615730636

The County Auditors Office is pleased to present the Comprehensive Annual Financial Report CAFR ofthe County of Victoria Texas the County for the year ended December 31 2009 This report issubmitted in compliance with Texas Local Government Code 114025

Responsibility for both the accuracy of the presented data and the completeness and fairness of thepresentation including all disclosures rests with the County We believe the data as presented isaccurate in all material aspects that it is presented in a manner designed to fairly set forth the financialposition and results of operations of the County as measured by the financial activity of its various fundsand that all disclosures necessary to enable the reader to gain the maximum understanding of the Countysfinancial affairs have been included

The County Auditor serves as the Chief Financial Officer for Victoria County By statute the Auditor reportsto the State District Judges This provides for an independent review of County financial operationsseparate from the CommissionersCourt the legislative and executive branch of county government TheCounty Auditor is responsible for accounting systems design audit functions required by law generalcontrol of finances and ensuring that the County meets its fiduciary responsibilities to taxpayers with regardto County finances by strictly enforcing the statutes governing County finances as provided by the localgovernment code As an appointed County Official and as a Certified Public Accountant the CountyAuditor takes an oath to uphold the Constitution and the laws of the State of Texas

In developing and evaluating the Countysaccounting system consideration is given to the adequacy ofinternal accounting controls Internal accounting controls are designed to provide reasonable but notabsolute assurance regarding the safeguarding of assets against loss from unauthorized use ordisposition and the reliability of financial records for preparing financial statements The concept ofreasonable assurance recognizes that the cost of a control should not exceed the benefits likely to bederived and the evaluation of costs and benefits requires estimates and judgments by management

All internal control evaluations occur within the above framework We believe that the Countys internalaccounting controls adequately safeguard assets and provide reasonable assurance of proper recording offinancial transactions

Honorable District JudgesHonorable County JudgeHonorable County CommissionersCounty of Victoria

June 11 2010

In compliance with Texas Local Government Code 115045 the financial statements and notes containedin this report have been audited by the independent auditors of Harrison Waldrop and Uherek LLPafirm of licensed certified public accountants The independent auditors report is included in the FinancialSection of this report

When other accounting bases conflict with state law Texas and its political subdivisions may follow thestatutory provisions of Chapter 2264 Texas Government Code Accordingly in 2008 the County followedthe statutory basis of accounting which is an other comprehensive basis of accounting provided but notmandated by this statute For the County the only difference between generally accepted accountingprinciples GAAP and the statutory basis of accounting is in the reporting of other postemploymentbenefits OPEB

The statutory basis differs from GAAP in that the Countyspresentation of OPEB on the financialstatements uses the statutory modified accrual basis This basis accurately and fairly sets forth thefinancial position of the County by i measuring the cost of benefits according to their adoption by thegoverning body of the County and by iiproviding an accurate assessment of OPEB liabilities and extent oftheir funding for the time for which the benefits were adopted Under GAAP GASB Statement No 45GASB 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than

Pensions defines an OPEB liability to include amounts the governing body has not authorized nor promisedto employees and for which there is no legally enforceable liability The County has concluded thatrecognizing an OPEB liability as defined by GASB 45 would result in publishing financial statements that arematerially misleading It would also be inconsistent with State financial laws and misrepresent the naturescope and duration of the financial activities of the County

Management has provided a narrative introduction overview and analysis to accompany the basic financialstatements in the form of a ManagementsDiscussion and Analysis MDA The letter of transmittal isdesigned to complement the MDA and should be read in conjunction with it The MDA can be found inthe Financial Section of this report

PROFILE OF VICTORIA COUNTY

The County is located in southeastern Texas on the Coastal plain about midway between the southern andeastern extremities of the Texas Gulf Coast The County was created in 1836 from a Mexican municipalitynamed for Mexican President Guadalupe Victoria The County encompasses an area of 892 square milesand serves a population of86916

The County is a public corporation and political subdivision of the State of Texas The general governingbody of the County is the elected five member Commissioners Court in accordance with Article 5Paragraph 18 of the Texas Constitution Commissioners serve fouryear staggered terms two memberselected every two years The County Judge is elected at large to serve a fouryear term

The Commissioners Court sets the tax rates establishes policies for County operations approvescontracts for the County and develops and adopts the County budget The Commissioners Court is alsoresponsible for development of policies and orders approving financial commitments and appointment ofvarious department heads The management and leadership provided by members of the CommissionersCourt and the elected and appointed officials of other key County offices is crucial to the success of theCounty in financial management and growth


June 11 2010

The County provides a full range of services The County provides many services not ordinarily provided byany other entity of government and provides additional services in cooperation with other localgovernmental units A primary service is the administration of justice which includes the civil and criminalcounty and district courts justices of the peace constables district attorney investigators clerks of thecourts sheriff jail security and emergency management and grand jury bailiffs Other functions

performed by the County include the construction and maintenance of roads and bridges eitherindependently or in cooperation with other entities administration of public health services assistance toindigents and the provision of juvenile health education and welfare services involving the care andcorrection of dependent or delinquent children as well as property tax collections for multiple agencies

The annual budget serves as the foundation for the Countys financial planning and control Budgethearings are posted annually in July and August by the County Judge with the final budget approved by theCommissioners Court following the hearings The final budget includes contingency line items Most

appropriated budgets are prepared by fund department and category The level of budgetary control thelevel at which expenditures cannot legally exceed the appropriated amount is established at the lineitemlevel within an individual fund The original budget may be amended by Commissioners Court underconditions prescribed by Texas Local Government Code Section 111010 Budgettoactual comparisonsare provided in this report for each governmental fund for which an appropriated budget has been adopted

Various potential component units were evaluated to determine whether they should be included in theCountys reporting entity because of the significance of their operational and financial relationship with theCounty Based upon standards established by the Governmental Accounting Standards Board see Note 1to the financial statements three component units have been included in this years report the VictoriaCounty Navigation District the Victoria County Child Welfare Board and Citizens Medical Center Theseentities are discretely presented and are not considered part of the primary government of the County Thisreporting method was used because while the entities are financially accountable to the County they donot have substantively the same governing body as the County nor do they provide services exclusively tothe County

FACTORS AFFECTING FINANCIAL CONDITION

The information presented in the financial statements is perhaps best understood when it is consideredfrom the broader perspective of the specific environment within which the County of Victoria operates

Local Economy The County is one of the leading regional economies in the seven county GoldenCrescent region The County has developed into a primary business center with growth in services andretail employment The Countys principal economic activities include petrochemical and industrialchemical plants plastics manufacturers heavy steel fabrication prestressed concrete oil and gasexploration medical services professional and financial servicesretail trade and higher educationAlthough the oil and gas petrochemical industries remain a vital component of the area employment basediversification within these industries into production of ancillary goods and plastics has reduced economicvulnerability to energy price fluctuations

The County records reflect modest debt levels rapid principal amortization and acceptable reserve levelsthat have benefited from sound fiscal management practices The County practices conservative budgetingand sets General Fund reserve targets at 15 to 25 of annual expenditures In the past year the Countyincurred a decrease in the General Fund unreserved fund balance as a result of several one timeexpenditures and revenues coming in lower than expected The CountysGeneral Fund reserve target isbased on the Countyspolicy of deferring ad valorem property taxes The resulting unreserved fundbalance does not include 36 million in ad valorem taxes collected in October November and Decemberof 2009 and are instead reported as deferred revenues

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June 11 2010

LongTerm Financial Planning The County of Victoria has identified several long term issues that needto be prioritized and funded by the Commissioners Court These priorities include adding an additionalcourtroom for the increasing caseload of jury trials resolving inadequate parking around the Courthousecomplex and making major infrastructure improvements to the jail The County issued Certificates ofObligation on April 9 2010 to reimburse the General Fund for one time expenditures that were incurred in2008 and 2009 and to fund some of the long term issues stated above

Cash Management The Commissioners Court has adopted a formal investment policy for the Countyconsistent with State statutes governing the investment of County funds and has designated the CountyTreasurer as the Countys investment officer The policy is updated annually The general objectives setforth in the policy provide for financial security and optimum liquidity of County funds while achieving themaximum yield on funds invested and maximum levels of invested funds Authorized investments areconsistent with those investments authorized by State law for Texas counties Currently the County haslimited its investments to certificates of deposits and money market funds

Risk Management The County has risk exposure in various areas including general liability workerscompensation automobile liability and property damage To reduce its risk exposure in these areas theCounty purchases commercial insurance policies from a private carrier The related policies carry variousdeductibles and aggregate maximum loss totals

The County is also exposed to risk of loss in the area of employee health coverage In this area theCounty bears all risk of loss up to 85000 per participant per year Coinsurance through a privateinsurance carrier assumes all risk for individual participants past that level Please refer to the notes to thefinancial statements for a complete discussion of the Countys employee health insurance operations

Pension Benefits The County provides retirement disability and death benefits for all of its full timeemployees through a nontraditional defined benefit pension plan in the statewide Texas County and DistrictRetirement System TCDRS Specific plan provisions are adopted by the County within the optionsavailable in the state statutes governing the TCDRS Benefit amounts are determined by the sum of theemployees contributions to the plan with interest and employer financed monetary credits The level ofthese monetary credits is adopted within the constraints imposed by the TCDRS Act so that the resultingbenefits can be expected to be adequately financed

ACKNOWLEDGEMENTS

The preparation of the CAFR could not have been accomplished without the efficient and dedicated effortsof the staff of the County AuditorsOffice We express our appreciation to all the members of the officewho assisted in and contributed to its preparation We would also like to thank the accounting firm ofHarrison Waldrop Uherek LLP for sharing their knowledge and extending their cooperation andsupport to the County AuditorsOffice Appreciation must also be expressed to the County Judgemembers of the Commissioners Court the County Treasurer and all other officials of the County for theirassistance in planning and conducting the financial operations of the County in a progressive andresponsible manner

Respectfully submitted

crd V v LG

Judy McAdams CPAVictoria County Auditor

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COUNTY OF VICTORIA TEXASDIRECTORY OF PRINCIPAL OFFICIALS

December 31 2009

ELECTED OFFICIALS

NAME POSITION

Donald R Pozzi County Judge

Kenny Spann Commissioner Precinct 1

Kevin Janak Commissioner Precinct 2

Gary Burns Commissioner Precinct 3

Wayne D Dierlam Commissioner Precinct 4

Stephen Tyler Criminal District Attorney

Val D Huvar County Clerk

Cathy Stuart District Clerk

Sean Kennedy County Treasurer

Rena Scherer County Tax Assessor Collector

T MichaelOConnor County Sheriff

Laura A Weiser Judge County CourtatLaw 1

Juan Velasquez III Judge County CourtatLaw 2

Joseph P Kelly Judge 24th Judicial DistrictK Stephen Williams III Judge 135th Judicial DistrictJuergen Skipper Koetter Jr Judge 267th Judicial DistrictRobert C Cheshire Judge 377th Judicial District

Annie Ramos Justice of the Peace 1

Stuart Posey Justice of the Peace 2

Robert Whitaker Justice of the Peace 3

Henry Welfel Justice of the Peace 4

Richard G Castillo Constable Precinct 1

James E Calaway Constable Precinct 2Kenneth Easley Jr Constable Precinct 3

John G Miller Constable Precinct 4

APPOINTED OFFICIALS

NAME

Judy McAdams CPARonald W Pray

POSITION

County AuditorCounty Fire Marshal

vi

FINANCIAL SECTION

HARRISON WALDROP UHEREKLLP

INDEPENDENT AUDITORS REPORT

The Honorable County Judge and Membersof the Commissioners Court

County of Victoria Texas

We have audited the accompanying statutory basis financial statements of the governmental activities thebusinesstype activities the aggregate discretely presented component units each major fund and theaggregate remaining fund information of County of Victoria Texas the County as of and for the yearended December 31 2009 which collectively comprise the Countysbasic financial statements as listed inthe table of contents These statutory basis financial statements are the responsibility of the Countysmanagement Our responsibility is to express opinions on these financial statements based on our auditWe did not audit the financial statements of the Citizens Medical Center which statements reflect totalassets of214513083as of June 30 2009 and total revenues of 147301776 for the year then endedWe also did not audit the financial statements of the Victoria County Child Welfare Board whichstatements reflect total assets of 188847 as of December 31 2009 and total revenues of 35937 forthe year then ended Those statements were prepared on the basis of accounting principles generallyaccepted in the United States of America GAAP and were audited by other auditors whose reports havebeen furnished to us and our opinions on the financial statements insofar as it relates to the amountsincluded for the Citizens Medical Center and the Victoria County Child Welfare Board in the componentunits column is based solely on the reports of the other auditors

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica applicable to financial audits contained in Government Auditing Standards issued by theComptroller General of the United States Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the basic financial statements are free of materialmisstatement The financial statements of the Citizens Medical Center and the Victoria County ChildWelfare Board were not audited in accordance with Government Auditing Standards An audit includesexamining on a test basis evidence supporting the amounts and disclosures in the financial statementsAn audit also includes assessing the accounting principles used and significant estimates made bymanagement as well as evaluating the overall financial statement presentation We believe that our auditand the reports of other auditors provide a reasonable basis for our opinions

As described more fully in Note 1 the County has prepared these financial statements using accountingpractices prescribed or permitted by Government Code Section 2264051 as adopted by State of TexasHouse Bill 2365 which practices differ from GAAP These statutory accounting practices recognize thecost of postemployment benefits other than retirement benefits on a statutory modified accrual basisGAAP requires that annual required contributions related to postemployment benefits other thanretirement benefits under a substantive plan as comprehended in GAAP be recorded as expenseswhich if not funded would increase the liabilities reduce the net assets and change the expenses of thegovernmental and businesstype activities The effects on the financial statements taken as a whole ofthe variances between these regulatory practices and GAAP although not reasonably determinable arepresumed to be material In our opinion because of the effects of the matter discussed previously thefinancial statements referred to above do not present fairly in conformity with GAAP the respectivefinancial position of the governmental activities the business type activities each major fund and theaggregate remaining fund information of the County as of December 31 2009 and the respectivechanges in financial position and cash flows where applicable thereof for the year then ended

MEMBERS OF

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTSTEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

STEPHEN W VAN MANEN CPAHAMILTON H REDMON CPA

DENNIS C CIHAL CPAHWU ERIC L KUCERA CPACLAYTON P VAN PELT CPA

ROBERT W SCHAAR CPAMELISSA M TERRY CPA

CERTIFIED PUBLIC ACCOUNTANTS

101 S MAIN SUITE 400 VOICE 361 573 3255VICTORIA TEXAS 7 7901 81 42 FAX 361 573 9531

INDEPENDENT AUDITORS REPORT



We have audited the accompanying statutory basis financial statements of the governmental activities thebusinesstype activities the aggregate discretely presented component units each major fund and theaggregate remaining fund information of County of Victoria Texas the County as of and for the yearended December 31 2009 which collectively comprise the Countysbasic financial statements as listed inthe table of contents These statutory basis financial statements are the responsibility of the Countysmanagement Our responsibility is to express opinions on these financial statements based on our auditWe did not audit the financial statements of the Citizens Medical Center which statements reflect totalassets of214513083as of June 30 2009 and total revenues of 147301776 for the year then endedWe also did not audit the financial statements of the Victoria County Child Welfare Board whichstatements reflect total assets of 188847 as of December 31 2009 and total revenues of 35937 forthe year then ended Those statements were prepared on the basis of accounting principles generallyaccepted in the United States of America GAAP and were audited by other auditors whose reports havebeen furnished to us and our opinions on the financial statements insofar as it relates to the amountsincluded for the Citizens Medical Center and the Victoria County Child Welfare Board in the componentunits column is based solely on the reports of the other auditors

We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica applicable to financial audits contained in Government Auditing Standards issued by theComptroller General of the United States Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the basic financial statements are free of materialmisstatement The financial statements of the Citizens Medical Center and the Victoria County ChildWelfare Board were not audited in accordance with Government Auditing Standards An audit includesexamining on a test basis evidence supporting the amounts and disclosures in the financial statementsAn audit also includes assessing the accounting principles used and significant estimates made bymanagement as well as evaluating the overall financial statement presentation We believe that our auditand the reports of other auditors provide a reasonable basis for our opinions

As described more fully in Note 1 the County has prepared these financial statements using accountingpractices prescribed or permitted by Government Code Section 2264051 as adopted by State of TexasHouse Bill 2365 which practices differ from GAAP These statutory accounting practices recognize thecost of postemployment benefits other than retirement benefits on a statutory modified accrual basisGAAP requires that annual required contributions related to postemployment benefits other thanretirement benefits under a substantive plan as comprehended in GAAP be recorded as expenseswhich if not funded would increase the liabilities reduce the net assets and change the expenses of thegovernmental and businesstype activities The effects on the financial statements taken as a whole ofthe variances between these regulatory practices and GAAP although not reasonably determinable arepresumed to be material In our opinion because of the effects of the matter discussed previously thefinancial statements referred to above do not present fairly in conformity with GAAP the respectivefinancial position of the governmental activities the business type activities each major fund and theaggregate remaining fund information of the County as of December 31 2009 and the respectivechanges in financial position and cash flows where applicable thereof for the year then ended

MEMBERS OF

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTSTEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS



In addition in our opinion based on our audit and the report of the other auditors the financial statementsreferred to above present fairly in all material respects the respective statutory basis financial position ofthe governmental activities the business type activities the discretely presented component units eachmajor fund and the aggregate remaining fund information of the County as of December 31 2009 andthe respective changes in financial position and cash flows where applicable thereof for the year thenended in conformity with the statutory basis of accounting described in Note 1

The managementsdiscussion and analysis and budgetary comparison information on pages 3 through 12and 71 through 72 are not a required part of the basic financial statements but are supplementaryinformation required by GAAP We have applied certain limited procedures which consisted principally ofinquiries of management regarding the methods of measurement and presentation of the requiredsupplementary information However we did not audit the information and express no opinion on it

In accordance with Government Auditing Standards we have also issued our report dated June 11 2010on our consideration of the Countys internal control over financial reporting and on our tests of itscompliance with certain provisions of laws regulations contracts and grant agreements and othermatters The purpose of that report is to describe the scope of our testing of internal control over financialreporting and compliance and the results of that testing and not to provide an opinion on the internalcontrol over financial reporting or on compliance That report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be read in conjunction with this report inconsidering the results of our audit

Our audit was performed for the purpose of forming opinions on the statutory basis financial statementsthat collectively comprise the Countysbasic financial statements The introductory section statutorybasis combining and individual major and nonmajor fund financial statements and schedules statisticaldata and schedule of expenditures of federal and state awards as required by the US Office ofManagement and Budget Circular A133 Auditing of States Local Governments and Non ProfitOrganizations and the State of Texas Single Audit Circular are presented for purposes of additionalanalysis and are not a required part of the basic financial statements The statutory basis combining andindividual major and nonmajor fund financial statements and schedules and the schedule of expendituresof federal and state awards have been subjected to the auditing procedures applied in the audit of thebasic financial statements and in our opinion are fairly stated in all material respects in relation to thebasic financial statements taken as a whole The introductory section and statistical data have not beensubjected to the auditing procedures applied in the audit of the basic financial statements andaccordingly we express no opinion on them

June 11 2010

COUNTY OF VICTORIA TEXASMANAGEMENTSDISCUSSION AND ANALYSIS

December 31 2009

The discussion and analysis of the County of Victoriasthe County financial performance provides an overviewof the Countysfinancial activities for the year ended December 31 2009 The discussion and analysis should beread in conjunction with the accompanying transmittal letter the basic financial statements and the accompanyingnotes to those financial statements The discussion and analysis includes comparative data for the prior year

FINANCIAL HIGHLIGHTS

The assets of the County exceeded its liabilities at the close of the year ended December 31 2009 by38458523 Of this amount9108490 is available to meet the Countysongoing obligations to citizensand creditors

At December 31 2009 the Countysgovernmental funds reported combined ending fund balances of6984104 The amount available for governmental discretion unreserved fund balance is6924581At December 31 2009 unreserved fund balance for the General Fund was3965140 or 1293 of totalGeneral Fund expendituresThe Countysgeneral obligation debt netted a decrease of1405000 The key factor in this decreasewas debt payments made during 2009

OVERVIEW OF THE FINANCIAL STATEMENTS

The new financial reporting model instituted by Governmental Accounting Standards Board Statement 34GASB 34 seeks to improve operational accountability by highlighting an overall picture that was lost in the detailof fund accounting Instead of focusing on aggregations of similar individual funds GASB 34 introducedgovernment wide financial statements which present the government as a single unified entity

This discussion and analysis is intended to serve as an introduction to the Countys basic financial statementsThe Countys basic financial statements are comprised of four components 1 governmentwide financialstatements 2 fund financial statements 3 component unit financial statements and 4 notes to financialstatements This report also contains other required supplementary information in addition to the basic financialstatements

Organization and Flow of Financial Section Information

Independent Auditors ReportProvides the opinion of the Independent Auditors on the fair

presentation ofthe basic financial statements

ManagementsDiscussion and AnalysisThis supplementary information is required for state and local government financial

statements and is intended to provide a narrative introduction and analysis

Pages 3 to 12Governmentwide Financial

StatementsProvides information on

governmental and business typeactivities of the primary

government

13 to 16

Fund Financial StatementsProvides information on the

financial position of specific fundsof the primary governments

17 to 26

Component Unit FinancialStatements

Provides information on the

Countyscomponent units

27 to 29

Notes to Financial Statements

Provides a summary ofsignificant accounting policies and related disclosuresPages 30 to 70

3

OVERVIEW OF THE FINANCIAL STATEMENTS Continued

Governmentwide Financial Statements The governmentwide financial statements which consist of thefollowing two statements are designed to provide readers with a broad overview of the Countys finances in amanner similar to a privatesector business

The statement of net assets presents information on all of the Countys assets and liabilities with the differencebetween the two reported as net assets Over time increases or decreases in net assets may serve as a usefulindicator of whether the financial position of the County is improving or deteriorating

The statement of activities presents information showing how the governmentsnet assets changed during 2009All changes in net assets are reported as soon as the underlying event giving rise to the change occursregardless of the timing of related cash flows Thus revenues and expenses are reported in this statement forsome items that will only result in cash flows in future fiscal periods eg uncollected taxes and earned butunused vacation leave

Both of these financial statements distinguish functions of the County that are principally supported by taxes andintergovernmental revenues governmental activities from other functions that are intended to recover all or asignificant portion of their cost through user fees and charges business type activities The governmentalactivities of the County include general government public safety highways and streets culture and recreationand public health The business type activities of the County include the airport Navarro project and othercommissary

The governmentwide financial statements include not only the County itself known as the primary governmentbut also the component units of Victoria County Navigation District Victoria County Child Welfare Board andCitizens Medical Center These component units are not included as part of the primary government

The governmentwide financial statements can be found on pages 13 16 of this report

Fund financial statements A fund is a grouping of related accounts that is used to maintain control overresources that have been segregated for specific activities or objectives The County like other state and localgovernments uses fund accounting to ensure and demonstrate compliance with finance related legalrequirements All of the funds of the County can be divided into three categories governmental funds proprietaryfunds and fiduciary funds

Governmental funds Governmental funds are used to account for essentially the same functions reported asgovernmental activities in the governmentwide financial statements However unlike the governmentwidefinancial statements governmental fund financial statements focus on nearterm inflows and outflows ofspendable resources as well as a balance of spendable resources available at the end of the fiscal year Suchinformation may be useful in evaluating a governmentsnearterm financing requirements

Because the focus of governmental funds is narrower than that of the governmentwide financial statements it isuseful to compare the information presented for governmental funds with similar information presented forgovernmental activities in the governmentwide financial statements By doing so readers may better understandthe long term impact of the governments near term financing decisions Both the governmental fund balancesheet and the governmental fund statement of revenues expenditures and changes in fund balances provide areconciliation to facilitate this comparison between governmental funds and governmental activities

The County maintains several individual governmental funds Information is presented separately in thegovernmental funds balance sheet and in the governmental funds statement of revenues expenditures andchanges in fund balances for the General Fund which is considered a major fund Data from the other

governmental funds are combined into a single aggregated presentation Individual fund data for each of thesenonmajor governmental funds is provided in the form of combining and individual statements and schedulesfollowing the required supplementary information

4

OVERVIEW OF THE FINANCIAL STATEMENTS Continued

The County adopts an annual appropriated budget for its General Fund road and bridge special revenue fundsand debt service fund A budgetary comparison schedule has been provided for the General Fund todemonstrate compliance with this budget and is located on pages 98105 of this report Budget comparisons arepresented for the road and bridge special revenue funds and the debt service fund on pages 106110 of thisreport

The basic governmental fund financial statements can be found on pages 17 20 of this report

Proprietary funds The County maintains two different types of proprietary funds Enterprise funds are used toreport the same functions presented as businesstype activities in the governmentwide financial statements TheCounty uses enterprise funds to account for its airport Navarro project and other enterprise activitiescommissary Internal service funds are an accounting device used to accumulate and allocate cost internallyamong the Countys various functions The County uses an internal service fund to account for its employeehealth insurance services Because this service predominantly benefits governmental rather than businesstypefunctions it has been included within governmental activities in the governmentwide financial statements

Proprietary funds provide the same type of information as the governmentwide financial statements only in moredetail The proprietary fund financial statements provide separate information for the airport and for the Navarroproject both of which are considered to be major funds of the County and other commissary

The basic proprietary fund financial statements can be found on pages 21 24 of this report

Fiduciary funds Fiduciary funds are used to account for resources held for the benefit of parties outside thegovernment Fiduciary funds are not reflected in the governmentwide financial statement because the resourcesof those funds are not available to support the Countys own programs The accounting used for fiduciary funds issimilar to proprietary funds

The basic fiduciary fund financial statements can be found on pages 2526 of this report

Notes to financial statements The notes provide additional information that is essential to a full understandingof the data provided in the governmentwide and fund financial statements The notes to financial statements canbe found on pages 3070 of this report

Other information In addition to the basic financial statements and accompanying notes this report alsopresents certain required supplementary information concerning the Countys General Funds budgetarycomparison schedule Required supplementary information can be found on pages 71 72 of this report

The combining statements referred to earlier in connection with nonmajor governmental funds and nonmajorenterprise funds is presented immediately following the required supplementary information Combining andindividual fund statements and schedules can be found on pages 73114 of this report

r

GOVERNMENTWIDE FINANCIAL ANALYSIS

As noted earlier net assets may serve over time as a useful indicator of a governmentsfinancial position In thecase of the County assets exceeded liabilities by 38458523 at the close of the year endedDecember31 2009


NET ASSETS

Current and other assets

Capital assets netTotal Assets

Current and other liabilities

Noncurrent liabilities

Total Liabilities

Net Assets

Investment in capital assetsnet of related debt

Restricted

Unrestricted

Total NetAssets

2009 2008

Governmental

Activities

31240351 35162925

24657192 24469742

55897543 59632667

22385740 23299110

5278939 6561563

27664679 29860673

18800745 16490 648

479495 484274

8952624 12797072

28232864 29771994

Business typeActivities

2009 2008

391463 320700

10987470 10994249

11378933 11314949

311953 228724

841321 938422

1153274 1167146

10069793 9991881

155866 155922

10225659 10147803

Total

2009 2008

31631814 35483625

35644662 35463991

67276476 70947616

22697693 23527834

6120260 7499985

28817953 31027819

28870538 26482529

479495 484274

9108490 12952994

38458523 39919797

The largest portion of the Countysnet assets 7507 reflects its investment in capital assets eg landbuildings improvements machinery and equipment less any related debt used to acquire those assets that isstill outstanding The County uses these capital assets to provide services to citizens consequently these assetsare not available for future spending Although the Countys investment in its capital assets is reported net ofrelated debt it should be noted that the resources needed to repay this debt must be provided from othersources since the capital assets themselves cannot be used to liquidate these liabilities

The County has restricted net assets of 479495 which represent resources that are subject to externalrestrictions on how they may be used The remaining balance of unrestricted net assets9108490 may beused to meet the governmentsongoing obligations to citizens and creditors

At the end of the current year the County is able to report positive balances in all three categories of net assetsboth for the government as a whole as well as for its separate governmental and business type activities

0

GOVERNMENTWIDE FINANCIAL ANALYSIS Continued


CHANGES IN NET ASSETS

Governmental

Activities

2009 2008

REVENUES

Program revenuesCharges for servicesOperating grants contributions

Capital grants contributions

General revenues

Property taxesOther taxes

Other

Total Revenues

EXPENSES

General governmentalPublic safetyHighways and streetsCulture and recreation

Public health

Interest on longterm debtAirportNavarro projectCommissary

Total Expenses

Change in net assets before transfers

Transfers

Change in net assets

Net assets January 1 2009

Net assets December 31 2009

9763105 10011243

4159006 4782081

769421

19199929 17808933

6844080 8024312

973893 1252320

41709434 41878889

17845546 19234 562

15751805 14741608

4220057 4400102

462762 465943

4319623 4294718

239157 304359

42838950 43441292

1129516 1562403

409614 472859

1539130 2035262

29771994 31807256

28232864 29771994


2009 2008

2486962 3211553

6522 27152

825097 865997

1354 10280

3319935 4114982

2950244 3678423

608712 58310492737 117250

3651693 4378777

331758 263795

409614 472859

77856 209064

10147803 9938739

10225659 10147803

Total

2009 2008

12250067 13222796

4165528 4809233

1594518 865997

19199929 17808 933

6844080 8024312

975247 1262600

45029369 45993871

17845546 19234562

15751805 14741608

4220057 4400102

462762 465943

4319623 4294718

239157 304359

2950244 3678423

608712 583104

92737 117250

46490643 47820069

1461274 1826198

1461274 1826198

39919797 41745995

38458523 39919797

7


Governmental activities Governmental activities decreased the Countys net assets by1539130 therebyaccounting for the majority of the total decrease in the net assets of the County Key elements of this decreaseare as follows

Interest income decreased 6713 or 340417from the prior year This decrease was due to fallinginterest rates

Sales tax revenues decreased 1526 or1192627 in comparison with 2008 This decrease was

attributable to a sluggish economy

Expenses and Program Revenues Governmental Activities

Revenues by Source Governmental Activities

Other

Expenses 1111 Program revenues20000000

Other taxes

Charges for services

18000000

23I

16000000

a rUr Operating grants

14000000

and contributions10

12000000

10000000 i4

Property taxes contributions46 2

8000000 r

6000000

4000000 uE

2000000Y E

General Public safety Highways Culture and Public health Interest ongovernment and streets recreation long term

debt

Revenues by Source Governmental Activities

i

Other

2Other taxes

17 Charges for services23

I

a rUr Operating grantsisrs rs and contributions

10

Capital grants andProperty taxes contributions

46 2

i


Business type activities Businesstype activities increased the Countysnet assets by 77856 compared to anincrease of 209064 in 2008 difference of 131028 This change was mainly due to a decrease in the transferof funds received by the Airport Fund from other County fu and a decrease in the capital grants received bythe Airport Fund during 2009

Expenses and Program Revenues Businesstype Activities

Revenues by Source Business type Activities

2

El Expenses im Program revenues3500000

3000000

2500000 E

2000000

1500000e

1000000y

500000i1

F170Airport Navarro Project Commissary

Revenues by Source Business type Activities

2

FINANCIAL ANALYSIS OF THE GOVERNMENTSFUNDS

As noted earlier the County uses fund accounting to ensure and demonstrate compliance with finance relatedlegal requirements

Governmental funds The focus of the Countysgovernmental funds is to provide information on near terminflows outflows and balances of spendable resources Such information is useful in assessing the Countysfinancing requirements In particular unreserved fund balance may serve as a useful measure of a governmentsnet resources available for spending at the end of the fiscal year

As of the end of the current year the Countysgovernmental funds reported combined ending fund balances of6984104 a decrease of4260824 in comparison with the prior year Of the total fund balance6924581constitutes unreserved fund balance and is available for spending at the Countysdiscretion The remainder offund balance is reserved to indicate that it is not available for new spending because it has already beencommitted for a variety of other purposes 59523

General Fund The General Fund is the chief operating fund of the County At the end of the current yearunreserved fund balance of the General Fund was3965140 while total fund balance was4024663 As ameasure of the General Fundsliquidity it may be useful to compare both unreserved fund balance and total fundbalance to total fund expenditures Unreserved fund balance represents 1293 of total General Fundexpenditures while total fund balance represents 1313 of that same amount

The fund balance of the Countys General Fund decreased by4344159 during the current year This decreaseis due to revenues including sales and use tax interest income fines and forfeitures and contract jail inmatescoming in significantly lower than expected The decrease in fund balance is also due to the following

784000 budgeted in revenue for Certificates of Obligation reimbursement to the General Fund that didnot occur until April of 20101200000 transfer to the Health Insurance Fund due to claims being higher than anticipated in theCountysself funded insurance plan135000 for the remainder of the Airport building removal project which began in 2008 in which severaldeteriorating 56 year old buildings were demolished and removed form the Airport property93000 for architectural services for planned building renovations and the demolition of the old TaxOffice located on the Courthouse grounds

Proprietary Funds The Countys proprietary funds provide the same type of information found in thegovernmentwide financial statements but in more detail

Unrestricted net assets of proprietary funds at the end of the year amounted to

Fund

AirportNavarro ProjectCommissary

Total

2009 2008Unrestricted UnrestrictedNet Assets Net Assets

61054 9778264906 2836429906 29776

155866 155922

Other factors concerning the finances of these funds have been addressed in the discussion of the Countysbusiness type activities

10

GENERAL FUND BUDGETARY HIGHLIGHTS

Differences between the original budget and the final amended budget resulted in an increase of2340735 inexpenditures and can be briefly summarized as follows

321712 in miscellaneous increases in general government expenditures due to equipment purchasesfor the County Treasurer District Clerk and Tax AssessorCollector offices increased bank chargesarchitectural services for planned building renovations trench burning for brush site cleanup at theAirport remainder of the Airport building demolition project which began in 2008 demolition of the old taxoffice building and increases in personnel562695 in miscellaneous increases in public safety expenditures due to the fire department located atthe County Airport being moved from the Airport Fund into the Fire Marshal budget new cars for theSheriffsoffice and kitchen appliances for the jail4000 in miscellaneous increases in culture and recreation expenditures due to increases in utilities1276354 in miscellaneous increases in transfers out due to a transfer to the Health Insurance Fund forhigher claims than anticipated in the Countys self funded insurance plan

Of this increase 105175was to be funded out of miscellaneous increases in intergovernmental revenues finesand forfeitures revenues and other miscellaneous revenues The remaining2235560 was due to purposefulspending of one time expenditures from unreserved fund balance several revenues coming in lower thanexpected and the reimbursement from Certificate of Obligations planned in 2009 not occurring until 2010For 2009 the General Fundsactual expenditures came in1494135 lower than the final budget This positivevariance is mainly due to

113145 in unspent Information Technology department expenditures of which 70000 was budgetedfor a fiber optic project with the City of Victoria which took place in the first quarter of 2010Payroll and other various expenditure accounts came in under budget for 2009

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital assets The Countys investment in capital assets for its governmental and businesstype activities as ofDecember 31 2009 amounts to 35644662 net of accumulated depreciation This investment in capitalassets includes land buildings improvements and machinery and equipment The net increase in the Countysinvestment in capital assets for the current year was 051 a077 increase for governmental activities and a006 decrease for business type activities

County ofVictoria TexasCAPITAL ASSETS

Net of Depreciation

Land

Construction in progress

Buildings

Improvements

Machinery and equipmentInfrastructure

Total

GovernmentalActivities

2009 2008

2302794 2125950

270302

10969855 11317001

5531205 5821932

4252890 4255191

681019 785304

9751434 9905918

135282 153594

1600448 949668

270302

11650874 12102305

15282 639 15727 850

4388172 4408785

1600448 949668

24657192 24469742 10987470 10994249 35644662 35463991


2009 2008

149433 149433 2452227 2275383

Total

2009 2008

Major capital asset events during the current year included the followingThe additions to the governmental activities capital assets during the year ended December 31 2009consisted of the followingo Land increased by 176844due to the purchase of property for future County office expansion

11

CAPITAL ASSETS AND DEBT ADMINISTRATION Continued

Capital Assets Continued

The additions to the business type activities capitalDecember 31 2009 consisted of the followingo Ongoing improvements to the airport property using

rehabilitate taxiways and THangar aprons at the Airport

Additional information on the Countys capital assets can be found in Note 6 of this report

Longterm debt At the end of the current year the County had total bonded debt outstanding of5920000 Ofthis amount5000000 comprises debt backed by the full faith and credit of the government and 920000secured solely by specific revenue sourcesie revenue bonds


General Obligation and Revenue Bonds

assets during the year ended

Airport Improvement Grant Funds to

Governmental Business typeActivities Activities

Certificates of obligationGeneral obligation bondsRevenue bonds

Bond discount

Total

2009 2008 2009 2008

3005000 3370000

1995000 3035000

Total

2009 2008

3005000 3370000

1995000 3035000

920000 1005000 920000 1005000

2322 2632 2322 26325000000 6405000 917678 1002368 5917678 7407368

The Countystotal debt decreased by1490000 2011 during the current year this was due to debtrepayment The County maintains an AK rating from Standard Poorsand an AX from Fitch Ratings forgeneral obligation debt Additional information on the Countys longterm debt can be found in Note 14

Economic Factors and Next Years Budgets and Rates

The annual budget is developed to provide efficient effective and controlled use of the Countys resources aswell as a means to accomplish the highest priority objectives Through the budget the Commissioners Court setsthe direction of the County allocates its resources and establishes its priorities

The final 2010 budget was adopted by Commissioners Court on September 14 2009 The budget includedseveral cuts including retirement contributions from 200 to 100 longevity to employees by one half and extrahelp from all departments The property tax rate was set at03986 3986 cents per 100 assessed taxablevaluation which reflects no change from the 2009 tax rate However the 2010 tax rate is one third ofa penny032 cents below the Countyseffective tax rate The taxable valuation increased for the 2010 year by28 million which will result in an increase of revenue of 343 thousand The County issued Certificates ofObligation in April 2010 to reimburse the General Fund for onetime expenditures that occurred during 2008 and2009 The General Fund fund balance is expected to increase to close to 6 million at the end of 2010

Request for Information

This financial report is designed to provide a general overview of the Countysfinances for all those with aninterest in the governmentsfinances Questions concerning any of the information provide in this report orrequests for additional financial information should be addressed to the County AuditorsOffice 115 N BridgeRoom 122 Victoria Texas 77901

12

Basic Financial Statements

COUNTY OF VICTORIA TEXASSTATEMENT OF NET ASSETS STATUTORY BASISDecember 31 2009

Primary Government

ASSETS

Current assets

Cash and cash equivalentsCash and cash equivalents restrictedReceivables netInternal balances

Due from other governmentsDue from external partiesInventoryDeferred expenditures expenses

Total current assets

Noncurrent assets

Capital assetsLand and other assets not beingdepreciated

Buildings improvements andequipment net

Issuance costs netRestricted assets

Cash and cash equivalentsTotal noncurrent assets

Total assets

Governmental Business type ComponentActivities Activities Total Units

11388844 239206 11628050 98061429714330

17896608 40384 17936992 16017423

106120 1061201810200 142797 1952997 322823435000 35000

37783 37783 2315366721682

31236772 354050 31590822 121058464

2302794

22354 3983579

419735

10 567 73537413

2722529

3292213340992

31786956

859835892124171

2043000

24660771 11024883 35685654 12193771655897543 11378933 67276476 242996180

13

Primary Government

LIABILITIES

Current liabilities

Accounts payableAccrued expensesAccrued interest payableDue to other governmentsClaims payableDepositsUnearned revenue

Accrued compensated absencesCurrent portion of longterm

obligationsTotal current liabilities


Noncurrent portion of long termobligations

Total noncurrent liabilities

Total liabilities

NET ASSETS

Invested in capital assets net ofrelated debt

Restricted for

Debt service

Other purposesUnrestricted net assets

Total net assets

Governmental Businesstype ComponentActivities Activities Total Units

732218 169820 902038 2486164894383 24466 918849 578436577321 20443 97764 368023343244 343244 1147008151954 1519541000 1000

18640366 18640366 1545412205571 7224 212795

1339683 90000 1429683 1625000

22385740 311953 22697693 12955972

5278939 841321 6120260 20855000

5278939 841321 6120260 20855000

27664679 1153274 28817953 33810972

18800745

3099761695198952624

28232864

10069 793

155866

10225659

28870538

309976169519

38458523

97650152

500784

111034272

209185208

The accompanying notes are an integral part of this statement14

COUNTY OF VICTORIA TEXASSTATEMENT OF ACTIVITIES STATUTORY BASIS


Function Programs Expenses

Primary Government

231546 739005

Governmental activities

1973278

General government 17845546

Public safety 15751805Highways and streets 4220057Culture and recreation 462762Public health 4319623

Interest on long term debt 239157

Total governmental activities 42838950

Businesstype activitiesAirport 2950244Navarro Project 608712Commissary 92737

Total businesstype activities 3651693

Total primary government 46490643

Component Units 137362678

Program Revenues

Operating CapitalCharges for Grants and Grants and

5280919 1166097 54162066881 788085 250001586389 231546 739005

828916 1973278

9763105 4159006 769421

1860584 6522 82509752814398235

2486962 6522 825097

12250067 4165528 1594518

146221841 162964 30000

General revenues

Taxes

Property taxes levied for general purposesProperty taxes levied for debt serviceSales taxes

Other taxes

Grants and contributions not restricted to

specific programsUnrestricted Investment earningsMiscellaneous

Transfers

Total general revenues and transfers


Net assets beginning

Net assets ending


Net Expense Revenue andChanges in Net AssetsPrimary Government

Business

Governmental type ComponentA

11393114128718391663117462 762151742923915728147

113931141287183916631174627621517429239157

28147418

258041 25804180569 805695498 5498

333112 333112

28147418 333112 28480530

9052127

17518917 17518917 12756331681012 1681012 3434246620902 6620902223178 223178

200591 200591166674 1354 168028 1849094

606628 606628 85653409614 409614

26608288 410968 27019256 3553804

1539130 77856 1461274 12605931

29771994 10147803 39919797 196579277

28232864 10225659 38458523 209185208

its

COUNTY OF VICTORIA TEXASBALANCE SHEET STATUTORY BASIS

GOVERNMENTAL FUNDS

December 31 2009

LIABILITIES AND FUND BALANCES

Liabilities

Accounts payable 416383

Other Total

Accrued expenditures 665295

Governmental Governmental

Due to other funds

General Funds Funds

ASSETS

343244 343244

Current assets

1000 1000

Cash and cash equivalents 7284911 3945738 11230649Receivables net 15009232 2789104 17798336Due from other governments 517099 1293101 1810200Due from other funds 907391 160462 1067853Advance to other funds 50848 50848

Total assets 23769481 8188405 31957886


Liabilities

Accounts payable 416383 149794 566177Accrued expenditures 665295 224302 889597Due to other funds 977436 977436Due to other governments 343244 343244Deposits 1000 1000Deferred revenue 18318896 3877432 22196328

Total liabilities 19744818 5228964 24973782

Fund balances

Reserved for

Advances 50848 50848Adult Probation 8675 8675

Unreserved undesignated reported inGeneral fund 3965140 3965140Special revenue funds 2686483 2686483Debt service fund 272958 272958

Total fund balances 4024663 2959441 6984104

Total liabilities and fund balances 23769481 8188405 31957886


COUNTY OF VICTORIA TEXASRECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET ASSETS

OF GOVERNMENTAL ACTIVITIES STATUTORY BASISDecember 31 2009

Total governmental fund balances 6984104

Amounts reported for governmental activities in the statement of net assets aredifferent because

The internal service fund is used by the County to charge the cost of healthinsurance to individual funds The assets and liabilities of the internal service fund

is included in governmental activities in the statement of net assets 66459

Property taxes receivable will be collected this year but are not available soonenough to pay for the current periodsexpenditures and therefore are deferred inthe funds 1 781079

Because the focus of governmental funds is on short term financing some assetswill not be available to pay for current period expenditures Those assets forexample receivables are offset by deferred revenues in the governmental fundsand thus are not included in fund balance 1774883

Capital assets used in governmental activities are reported as expenditures ingovernmental funds when purchased or constructed The cost of these assets is162747118and the accumulated depreciation is 138089926 24657192

Other noncurrent assets for example bond issue costs used in governmentalactivities are not financial resources and therefore are not reported ingovernmental funds The cost of these assets is 162872 and the accumulatedamortization is 159293 3579

Longterm liabilities are not due and payable in the current period and thereforeare not reported as liabilities in the funds Long term liabilities at yearend consistof

Bonds payable 5000000Capital leases payable 856447Accrued interest payable 77321Compensated absences 967746 6901514

Net assets of governmental activities 28232864

The accompanying notes are an integral part of this statementID

COUNTY OF VICTORIA TEXASSTATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES STATUTORY BASISGOVERNMENTAL FUNDS


EXPENDITURES

Current

General governmentPublic safetyHighways and streetsCulture and recreation

Public health

Capital outlayDebt service

Principal retirementInterest and fiscal charges

Total expenditures

1570120814380121

38578315696

175844

30658652

1928050926845422816337754274036

176292581530696642281633895584289732175844

Excess deficiency of revenuesover expenditures

OTHER FINANCING SOURCES USESSale of assets

Capital lease proceedsTransfers in

Transfers out

Total other financing sources uses

Change in fund balances

Fund balances at beginning of year

Fund balances at end of year

1405000244250

13010119

1361762 1694436

2346228287218793134766622982397

98654

22496295705121777771

4344159 83335

8368822 2876106

4024663 2959441

1405000244250

43668771

3056198

122116282872243756040471741204626

4260824

11244928

6984104


Other Total

Governmental Governmental

General Funds Funds

REVENUES

Taxes 21828312 4333257 26161569Fees of office and user fees 1795818 1182837 2978655Intergovernmental 3355331 5599385 8954716Fines and forfeitures 1328994 86138 1415132Investment income 136009 30665 166674Licenses and permits 53966 53966Contributions 5350 5350Miscellaneous 798460 78051 876511Total revenues 29296890 11315683 40612573

EXPENDITURES

Current


Public health

Capital outlayDebt service


Total expenditures

1570120814380121

38578315696

175844

30658652

1928050926845422816337754274036

176292581530696642281633895584289732175844




Transfers out





1405000244250

13010119

1361762 1694436

2346228287218793134766622982397

98654

22496295705121777771

4344159 83335

8368822 2876106

4024663 2959441

1405000244250

43668771

3056198

122116282872243756040471741204626

4260824

11244928

6984104


COUNTY OF VICTORIA TEXASRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUESEXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES STATUTORY BASISFor the year ended December 31 2009

Total net change in fund balances governmental funds 4260824

Amounts reported for governmental activities in the statement of activities aredifferent because

The internal service fund is used by the County to charge the costs of healthinsurance to individual funds The net income of the internal service fund is

reported with governmental activities 157481

The net effect of various transactions involving capital assets Ie transfersadjustments and dispositions is to increase net assets 709270

Current year capital outlays are expenditures in the fund financial statements butthey should be shown as increases in capital assets in the governmentwidefinancial statements The net effect of removing the 2009 capital outlays is toincrease net assets 1213462

Depreciation is not recognized as an expense on the governmental funds since itdoes not require the use of current financial resources The net effect of thecurrent yearsdepreciation is to decrease net assets 1735282

Capital lease proceeds provide current financial resources to governmental fundshowever issuing debt increases long term liabilities in the statement of netassets 282872

Current year payments on long term debt are expenditures in the fund financialstatements but they serve to reduce longterm liabilities in the governmentwidefinancial statements In the current year these amounts consist of

Bond principal retirement 1405000

Capital lease principal retirement 1000519 2405519

Because some property taxes will not be collected for several months after theCountys fiscal year ends they are not considered available revenues and aredeferred in the governmental funds Similarly other revenues are not currentlyavailable at year end and are not reported as revenue in the governmental funds

Property taxes 165168Other revenues 100307 265475

Some items reported in the statement of activities do not require the use ofcurrent financial resources and therefore are not reported as expenditures ingovernmental funds These activities consist of

Increase in compensated absences 16452Decrease in accrued interest 19410Decrease in issuance costs 14317 11359

Change in net assets of governmental activities 1539130


COUNTY OF VICTORIA TEXASSTATEMENT OF NET ASSETS STATUTORY BASISPROPRIETARY FUNDS

December 31 2009


Businesstype Activities

Governmental

Activities

Navarro Internal Service

Airport Project Commissary Total Fund

ASSETS

Current assets

Cash and cash equivalents 64312 140160 34734 239206 158195Receivables net 40384 40384 98272Due from other governments 142797 142797

Inventory 37783 37783

Total current assets 285276 140160 34734 460170 256467

Noncurrent assets

Capital assetsLand and other assets not beingdepreciated 270302 149433 419735Buildings improvements andequipment net 8331268 2215671 20796 10567735

Bond issue costs net 37413 37413

Total noncurrent assets 8601570 2402517 20796 11024883

Total assets 8886846 2542677 55530 11485053 256467

LIABILITIES

Current liabilities

Accounts payable 135213 34300 307 169820 166041Accrued expenses 17634 3742 3090 24466 4786Accrued interest payable 20443 20443Due to other funds 54707 353 212 55272 145Advance from other funds 50848 50848Claims payable 151954Accrued compensated absences 5770 1032 422 7224Current portion of bonds payable 90000 90000

Total current liabilities 213324 200718 4031 418073 322926


Accrued compensated absences 10898 1949 797 13644Bonds payable net 827677 827677

Total noncurrent liabilities 10898 829626 797 841321

Totalliabilities 224222 1030344 4828 1259394 322926

NET ASSETS

Invested in capital assetsnet of related debt 8601570 1447427 20796 10069793Unrestricted net assets 61054 64906 29906 155866 66459

Total net assets 8662624 1512333 50702 10225659 66459


COUNTY OF VICTORIA TEXASSTATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND NET ASSETS STATUTORY BASISPROPRIETARY FUNDS


Business type Activities

OPERATING REVENUESCharges for servicesRents

Miscellaneous

Total operating revenues

OPERATING EXPENSESAirport operationsCommissary operationsLease operationsHealth services

Depreciation and amortizationTotal operating expenses

Operating income loss beforenonoperating revenues expensesand contributions and transfers

NONOPERATING REVENUES

EXPENSESInvestment income

Interest

Noncapital grants and contributionsInterest and debt costs

Total nonoperating revenuesexpenses

Income loss before contributionsand transfers

Contributions and transfers

Capital grants and contributionsTransfers in

Navarro

Airport Project Commissary

1308656 98235456690 52814395238

1860584 528143 98235

226828291105

313384

681962 236854 1632

2950244 550238 92737

rI

Governmental

ActivitiesInternal Service

Fund

Total contributions and transfers


Total net assets at beginning of year

Total net assets at end of year

140689198483395238

2486962

226828291105313384

n0f A A 4

1089660 22095 5498 1106257

960 119 275 13546522 6522

58474 58474

7482 58355 275 50598

1082178 80450 5773 1156855

825097 825097409614 409614

1234711 1234711

152533 80450 5773 77856

8510091 1592783 44929 10147803

8662624 1512333 50702 10225659

2677097

2677097

3719616

3719616

1042519

1042519

1200000

1200000

157481

223940

G6459


COUNTY OF VICTORIA TEXASSTATEMENT OF CASH FLOWS STATUTORY BASIS

PROPRIETARY FUNDS


Businesstype Activities

CASH FLOWS FROM OPERATING ACTIVITIES

GovernmentalActivities

Navarro Internal

Airport Project Commissary Total Service Fund

Cash received from customers 1822314 531383 98235 2451932 2695399Cash paid to suppliers for goods and services 1657997 201321 14807 1874125 3509376Cash paid to employees for services 606954 109150 77327 793431 139939

Net cash provided used by operating

35629 373785

64312

activities 442637 220912 6101 215624 953916

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES

Borrowing to other fundsTransfers in from other funds

Net cash provided used by noncapitalfinancing activities

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIESCapital contributionsAcquisition and construction of capital assetsPrincipal paid on bondsInterest paid

52047 69872409614

461661 69872

4 17821 87889409614 1200000

4 391793 1112111

Net cash provided used by capital andrelated financing activities

CASH FLOWS FROM INVESTING ACTIVITIESInvestment income

Net cash provided used byinvesting activities

Net increase decrease in cash and cashequivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

625482 625482778452 6922 7275 792649

85000 8500059935 59935

152970 151857 7275 312102

960 119 275 1354

960 119 275 1354

132986 698 895 134579 158195

197298 140858 35629 373785

64312 140160 34734 239206 158195

23

COUNTY OF VICTORIA TEXASSTATEMENT OF CASH FLOWS STATUTORY BASISPROPRIETARY FUNDS


Businesstype ActivitiesGovernmental

Activities

Navarro Internal

Airport Project Commissary Total Service Fund

RECONCILIATION OF OPERATING INCOME

TO NET CASH PROVIDED BY OPERATING

ACTIVITIES

Operating income loss 1089660 22095 5498 1106257 1042519

Adjustments to reconcile operating income tonet cash provided by operating activitiesDepreciation and amortizationChanges in assets and liabilities

Increase decrease in accounts receivableIncrease decrease in inventoryIncrease decrease in accounts payableIncrease decrease in accrued expensesIncrease decrease in compensated absencesIncrease decrease in claims payable

Total adjustments

Net cash provided used by

681962 236854 1632 920448

38270 3240 35030 1830215906 1590635769 1215 267 36717 1555847640 704 319 6617 513

8892 994 1081 897985796

647023 243007 603 890633 88603

operating activities 442 220912 6101 215624 953916

NONCASH CAPITAL AND RELATED

FINANCING ACTIVITIES

Capital contributed relating to capital assetadditions 43426 43426


COUNTY OF VICTORIA TEXASSTATEMENT OF FIDUCIARY NET ASSETS

FIDUCIARY FUNDS

December 31 2009

Private

Purpose AgencyTrust Funds

ASSETS

Cash and cash equivalents 64120 10963145Receivables net

Other 37097Due from other governments 3886Seized assets 1380

Total assets

LIABILITIES

Liabilities

Accounts payableDue to other funds

Due to other governments

Total liabilities

NET ASSETS

Unrestricted net assets


64120 11017933

13083 332015635000

7697777

48083

16037

11017933

L

COUNTY OF VICTORIA TEXASSTATEMENT OF CHANGES IN FIDUCIARYNET ASSETS

FIDUCIARY FUNDS


ADDITIONS

Investment incomeInterest

Miscellaneous

Participants contributions

Total additions

DEDUCTIONS

General governmentParticipants withdrawals

Changes in net assets


Net assets ending

The accompanying notes are an integral part of this statement

Private

PurposeTrust

200

120102

120302

122237

1935

17972

16037

26

COUNTY OF VICTORIA TEXASSTATEMENT OF NET ASSETS

COMPONENT UNITS

December 31 2009

ASSETS

Current assets

Cash and cash equivalentsCash and cash equivalentsrestrictedReceivables netDue from other governmentsSupplies inventoryDeferred expenditures prepaid expenses

Total current assets

Noncurrent assetsCapital assets

Land and other assets not beingdepreciatedBuildings improvements andequipment net

Bond issue costs netRestricted assets

Cash and cash equivalentsTotal noncurrent assets

Total assets

LIABILITIES

Current liabilities

Accounts payableAccrued expenditures expensesAccrued interest payableDue to other governmentsUnearned revenue

Current portion of long term obligationsTotal current liabilities


Noncurrent portion of longterm obligationsTotal noncurrent liabilities

Total liabilities

NET ASSETS

Invested in capital assets net of related debtRestricted for

Debt service

Unrestricted net assets

Total net assets

Victoria Victoria

County County Citizens

Navigation Child Welfare MedicalDistrict Board Center Total

7540995 188167 90332267 98061429714330 714330

1207770 14809653 16017423106745 3121489 3228234

2315366 23153661745 680 719257 7216828857255 188847 112012362 121058464

16571917 15215039 31786956

2756007 83227582 85983589109071 2015100 2124171

2043000 204300019436995 102500721 121937716

28294250 188847 214513083 242996180

579931 795 1905438 24861645784365 5784365

32336 335687 3680231147008 1147 008

1545412 1545412500000 1125000 16250002657679 795 10297498 12955972

7035000 13820000 208550007035000 13820000 20855000

9692679 795 24117498 33810972

11792924 85857228 97650152

122141 378643 5007846686506 188052 104159714 111034272

18601571 188052 190395585 209185208


COUNTY OF VICTORIA TEXASSTATEMENT OFACTIVITIES

COMPONENT UNITS


Program Revenues

General revenues

Taxes

Property taxes levied for general purposesProperty taxes levied for debt service

Unrestricted investment earningsMiscellaneous

Total general revenues



Net assets ending


Operating CapitalCharges for Grants and Grants and

Function Programs Expenses Services Contributions Contributions

Component UnitsVictoria County Navigation District 2381961 614667 132964Victoria County Child Welfare Board 27377 1989 30000Citizens Medical Center 134953340 145605185 30000

Total component units 137362678 146221841 162964 30000

General revenues

Taxes

Property taxes levied for general purposesProperty taxes levied for debt service

Unrestricted investment earningsMiscellaneous

Total general revenues



Net assets ending


Victoria CountyNavigation

District

1634330

Net Expense Revenueand Changesin Net Assets

Component Units

Victoria County Citizens

Child Welfare Medical

Board Center

461210681845

106818451634330 4612

127563334342417855585653

1883265

248935

18 352 636

18601571

3948

3948

8560

179492

188052

1666591

1666591

12348436

178047149

190395585

Total

16343304612

10681845

9052127

1275633343424184909485653

3553804

12605931

196579277

209185208

29

COUNTY OF VICTORIA TEXASNOTES TO FINANCIAL STATEMENTS

December 31 2009

INDEX

Note Page

1 Summary of Significant Accounting Policies 31

2 Stewardship Compliance and Accountability 39

3 Deposits and Investments 39

4 Receivables 40

5 Due From Other Governments 41

6 Capital Assets 42

7 Lessor Agreements 43

8 Employees Retirement Plan 44

9 Optional Group Term Life Fund 46

10 Other Post Employment Benefits 46

11 Employees Health Insurance Fund 46

12 Deferred Compensation Plan 47

13 Risk Management 47

14 Longterm Debt 48

15 Interfund Receivables Payables and Transfers 50

16 Related Party Transactions 51

17 Contingencies 52

18 Subsequent Event 52

19 Adjustments to and Restatements of Beginning Balances 52

20 Victoria County Navigation District 52

21 Victoria County Child Welfare Board 57

22 Citizens Medical Center 58

30

COUNTY OF VICTORIA TEXASNOTES TO FINANCIAL STATEMENTS

December 31 2009

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The County of Victoria Texas the County is a political subdivision of the State of Texas the State The

County is governed by the Commissioners Court composed of four 4 County Commissioners and theCounty Judge all of whom are elected officials

The Governmental Accounting Standards Board GASB is the accepted primary standard setting body forestablishing governmental accounting and financial reporting principles to the extent that its rules do notconflict with State financial laws and the State Constitution The codification of GASB Statements and

Interpretations and any amendments thereto define the Governmental Accounting and Financial ReportingStandards that constitute generally accepted accounting principles GAAP for governmental units GASBrecognizes that the establishment of accounting standards for states and local governments which werecreated by states is a power retained by the states

Prior to 2008 the County prepared financial statements in accordance with GAAP because it did not conflictwith State financial laws and the State Constitution However the County has concluded that complying withrecently issued GASB Statement No 45 GASB 45 Accounting and Financial Reporting by Employers forPostemployment Benefits Other than Pensions OPEB would result in publishing financial statements thatare materially misleading It would also be inconsistent with State financial laws and misrepresent the naturescope and duration of the financial activities of the County

Beginning in 2008 the County prepared its financial statements using the statutory basis of accountingprovided by the State in Chapter 2264 Texas Government Code Chapter 2264 Financial Accounting andReporting the Statutory Basis This Statutory Basis is a comprehensive basis of accounting other thanGAAP that is consistent with State financial laws and the State Constitution The statutory accountingpractices as prescribed in Chapter 2264 amend or supersede portions of GASB pronouncements

The only departure from GAAP as a result of applying the Statutory Basis of accounting is in the accountingfor and reporting of OPEB GASB 45 requires state and local governments to establish standards for themeasurement recognition and display of other postemployment benefits expense expenditures relatedliabilities and note disclosures in the financial statements The Statutory Basis differs from GAAP in thatGAAP requires a government to report an OPEB liability even when the government has not promised orcontracted to fund future benefits and when there is no legally enforceable liability In other words GASB 45does not distinguish between a government that has a legally enforceable liability and a government that doesnot nor does it distinguish between a government that has promised benefits and a government that has notIn addition GASB stated in paragraph 77 of GASB 45 the Board affirmed its general presumptions and thatof other standards setters that an employer that has established a pattern of providing postemployment benefitshas accepted responsibility to provide those benefits Such presumptions may result in materially misleadingfinancial statements and may be contrary to State law and the actions of the governmentsgoverning body

The Statutory Basis of accounting provides an accounting basis for the County to report any legallyenforceable OPEB liability it may have incurred based on the CountysSubstantive Plan A Substantive

Plan is defined in Chapter 2264 as a plan providing OPEB approved by the governing body of the planprovider according to the laws and Constitution of the State The Statutory Basis is consistent with thedefinition and characteristics of a liability defined in GASB Concepts Statement No 4 Elements of FinancialStatements as a present obligation to sacrifice resources that the government has little or no discretion toavoid No promises of continuing retirement healthcare benefits beyond 2009 have been made toemployees by the Commissioners Court The County has included communications both in informationprovided to employees and in the annual financial statements that specifically state that the decision toprovide these benefits is made on an annual basis

31

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Continued

In summary the Countys presentation of OPEB in its financial statements using the Statutory Basis inChapter 2264 1 measures the cost of benefits according to their adoption by the government body of theCounty 2provides an accurate assessment of OPEB liabilities and the extent of their funding for the timeperiod for which the benefits were adopted and 3 provides information useful in assessing potentialdemands on the Countysfuture cash flows

Other significant accounting policies followed by the County are described below

A Reporting Entity

In evaluating how to define the government for financial reporting purposes the Countys managementhas considered all potential component units The decision to include a potential component unit in thereporting entity was made by applying the criteria set forth in GASB Statement No 14 The FinancialReporting Entity and as amended by GASB Statement No 39 Determining Whether CertainOrganizations are Component Units Under these guidelines the reporting entity consists of the primarygovernment all funds of the County organizations for which the primary government is financiallyaccountable organizations for which the primary government is not financially accountable organizationsthat raise and hold economic resources for the direct benefit of the primary government and any otherorganization for which the nature and significance of their relationship with the primary government issuch that exclusion could cause the Countysfinancial statements to be misleading or incompleteEntities other than the primary government that are included in the primary governmentsfinancialstatements are called component units The component units discussed in this note are included in theCountysfinancial statements because of the significance of their financial relationships with the Countyand the Countys ability to impose its will on the organizations

Component Units

The component units column in the financial statements includes the financial data of the Countysthreecomponent units They are reported in a separate column to emphasize that they are legally separatefrom the County

Victoria County Navigation District Established to oversee and regulate the maintenance and operationsof the Victoria Barge Canal The District is governed by a Board of Commissioners each member ofwhich is appointed by the Commissioners Court of the County The Commissioners Court of Victoriaalso reviews and approves its annual budget This entity is considered a Governmental Fund Type forthe Countysreporting purposes and uses the same fiscal year as the County

Victoria County Child Welfare Board Established to provide various child protective services to residentsof the County The Commissioners Court of the County appoints each member of the entitys board ofdirectors and reviews and approves its annual budget The programs of the Board are jointly financed bythe County and the State of Texas This entity is considered a Governmental Fund Type for the Countysreporting purposes and uses the same fiscal year as the County

Citizens Medical Center A 368bed acute care hospital owned by the County and established to providemedical services to the residents of the County and surrounding areas The Medical Center is governedby a board of directors each member of which is appointed by the Commissioners Court of the CountyThis Court also reviews and approves the annual operating budget of the Medical Center Citizens

Medical Center operates on a fiscal year ending June 30 of each year The amounts reported for theMedical Center in the financial statements are as of June 30 2009 The Medical Center is reported as aProprietary Fund Type in the accompanying financial statements

32


A Reporting Entity Continued

Complete financial statements for each of the above noted component units may be obtained bycontacting their respective administrative offices at the following addresses

Victoria County Navigation District115 North Bridge Room 241Victoria Texas 77901

Victoria County Child Welfare Board1502 E Airline Road

Victoria Texas 77901

Citizens Medical Center

2701 Hospital DriveVictoria Texas 77901

B Governmentwide and Fund Financial Statements

The governmentwide financial statementsie the statement of net assets and the statement of changesin net assets report information on all nonfiduciary activities of the County and its component units Forthe most part the effect of interfund activity has been removed from these statements Governmentalactivities which normally are supported by taxes and intergovernmental revenues are reported separatelyfrom business type activities which rely to a significant extent on fees and charges for support Likewisethe primary government is reported separately from its legally separate component units

The statement of activities demonstrates the degree to which the direct expenses of a given function orsegment are offset by program revenues Direct expenses are those that are clearly identifiable with aspecific function or segment Program revenues include 1 charges to customers or applicants whopurchase use or directly benefit from goods services or privileges provided by a given function orsegment and 2 grants and contributions that are restricted to meeting the operational or capitalrequirements of a particular function or segment Taxes and other items not properly included amongprogram revenues are reported instead as general revenues

Separate financial statements are provided for governmental funds proprietary funds discretelypresented component units and fiduciary funds even though the latter are excluded from thegovernmentwide financial statements Major individual governmental funds and major individualenterprise funds are reported as separate columns in the fund financial statements

C Measurement Focus Basis of Accounting and Financial Statement Presentation

The governmentwide financial statements are reported using the economic resources measurementfocus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financialstatements Revenues are recorded when earned and expenses are recorded when a liability is incurredregardless of the timing of related cash flows Property taxes are recognized as revenues in the year forwhich they are levied Grants and similar items are recognized as revenue as soon as all eligibilityrequirements imposed by the provider have been met

33


C Measurement Focus Basis of Accounting and Financial Statement Presentation Continued

Governmental fund financial statements are reported using the current financial resources measurementfocus and the modified accrual basis of accounting Revenues are recognized as soon as they are bothmeasurable and available Revenues are considered to be available when they are collectible within thecurrent period or soon enough thereafter to pay liabilities of the current period The County considersproperty taxes as available if they are collected within 60 days after yearend A 120 day availabilityperiod is used for recognition of all other Governmental Fund revenues Expenditures generally arerecorded when a liability is incurred as under accrual accounting However debt service expendituresexcept for interest payable accrued at the debt issuance date for which cash is received with the debtproceeds as well as expenditures related to compensated absences and claims and judgments arerecorded only when payment is due

The revenues susceptible to accrual are property taxes fines licenses charges for services interestincome and intergovernmental revenues Sales taxes collected and held by the state and other thirdparties at year end on behalf of the County are also recognized as revenue All other revenue items areconsidered to be measurable and available only when cash is received by the County

The 2009 tax levy is dedicated to pay for expenditures of the 2010 budget The entire 2009 tax levy hasbeen recorded as deferred revenue as of December 31 2009

The County reports the following major governmental fund

The General Fund is the Countys primary operating fund It accounts for all financial resources ofthe general government except those required to be accounted for in another fund

The County reports the following major proprietary funds

Enterprise Funds are used to account for operations 1 that are financed and operated in a mannersimilar td private business enterprises where the intent of the governing body is that the costsexpenses including depreciation of providing goods or services to the general public on a continuingbasis be financed or recovered primarily through user charges or 2 where the governing body hasdecided that periodic determination of revenues earned expenses incurred andor net income isappropriate for capital maintenance public policy management control accountability or other purposes

The Airport Fund an enterprise fund accounts for the operations of and improvements to the CountyAirport

The Navarro Project Fund an enterprise fund accounts for the operation of a large office complexwhich was purchased and renovated by the County for the primary use of the County HealthDepartment The building is also currently leasing space to other entities unrelated to the County

Additionally the County reports the following funds

The Internal Service Fund accounts for the financing of goods or services provided by onedepartment or agency to other departments or agencies of the County or to other governments on acost reimbursement basis The County maintains one Internal Service Fund Employee HealthInsurance Fund

The Private Purpose Trust Fund or the Flexible Benefits Plan is used to account for amountswithheld from employee paychecks before FICA and withholding taxes are computed All resourcesof the fund including any earnings on invested resources may be used to benefit parties outside theCounty All the above is according to the plan document The fund is excluded from the governmentwide financial statements

34


C Measurement Focus Basis of Accounting and Financial Statement Presentation Continued

The Agency Funds account for resources held by the County as an agent for various governmentsand individuals These resources include ad valorem taxes collected and to be distributed to otherlocal governments passthrough grants various fines and fees to be distributed to othergovernments etc Thefunds are excluded from the governmentwide financial statements

The Special Revenue Funds account for the proceeds of specific revenue sources that are legallyrestricted to expenditures for specified purposes

The Debt Service Fund accounts for financial resources accumulated and payments made forprincipal and interest on long term general obligation debt of governmental funds

Private sector standards of accounting and financial reporting issued prior to December 1 1989 generallyare followed in both the governmentwide and proprietary fund financial statements to the extent thatthose standards do not conflict with or contradict guidance of GASB Governments also have the optionof following subsequent privatesector guidance for their businesstype activities and enterprise fundssubject to this same limitation The County has elected not to follow subsequent privatesector guidance

As a general rule the effect of interfund activityhas been eliminated from the governmentwide financialstatements Exceptions to this general rule are charges between various functions of the CountyElimination of these charges would distort the direct costs and program revenues reported for the variousfunctions concerned

Amounts reported as program revenues include 1 charges to customers or applicants for goodsservices or privileges provided 2 operating grants and contributions and 3 capital grants andcontributions including special assessments Internally dedicated resources are reported as generalrevenues rather than as program revenues Likewise general revenues include all taxes

Proprietary funds distinguish operating revenues and expenses from nonoperating items Operatingrevenues and expenses generally result from providing services and producing and delivering goods in

ti connection with a proprietary funds principal ongoing operations The principal operating revenues of theCountys enterprise funds and internal service fund are charges to customers for sales and servicesOperating expenses for enterprise funds and internal service funds include the cost of sales and servicesadministrative expenses and depreciation on capital assets All revenues and expenses not meeting thisdefinition are reported as nonoperating revenues and expenses

When both restricted and unrestricted resources are available for use it is the Countyspolicy to userestricted resources first then unrestricted resources as they are needed

D Budgets and Budgetary Accountin

The County Judge is by statute the budget officer of the County After being furnished budget guidelinesby the County Judge and Commissioners Court the County Auditor prepares an estimate of revenuesand a compilation of requested departmental expenditures Department officials appear before theCounty Judge and the County Auditor for departmental budget review A proposed budget is prepared bythe County Auditor then submitted to the Commissioners Court Before determining the final budget theCommissioners Court may increase or decrease the amounts requested by the various departmentsAmounts finally budgeted may not exceed the County Auditors estimate of revenues and estimated cashbalance at January 1 of the budgeted year

Budgets are adopted for the General Fund Road and Bridge Special Revenue Funds and the DebtService Fund by the first regular session of the Commissioners Court in September All budgets adoptedby the County are on the cash basis of accounting rather than in conformity with GAAP Under thebudgetary basis revenues are recognized as collected and expenditures when paid

35


D Budgets and Budgetary Accounting Continued

When the budget has been adopted by the Commissioners Court the County Auditor is responsible formonitoring expenditures to keep them from exceeding budgeted appropriations and for keeping themembers of the Commissioners Court advised of the condition of the various funds and accounts Thelevel of control the level on which expenditures may not exceed appropriations for each legally adoptedannual operating budget is on a line item basis Any amendments above the lineitem level must havethe approval of the Commissioners Court before implementation The lineitemlevel of control is definedby the basic categories of salaries fringe benefits operating expenditures other services and chargescapital outlay and debt service

Budget revenue amendments made during the year in the Countys governmental funds netted an increaseof 972308 Budget expenditure amendments in these funds netted an increase of3456632

Encumbrance accounting under which purchase orders contracts and other commitments for theexpenditure of monies are recorded in order to reserve that portion of the applicable appropriation isemployed by the County as an extension of formal budgetary integration Encumbrances outstanding atyearend are not reported as reservations of fund balances All encumbered appropriations lapse at theend of the fiscal year Encumbered appropriations are reappropriated in the ensuing yearsbudget

E Deposits and Investments

The Countyscash and cash equivalents are considered to be cash on hand demand deposits andshortterm investments with original maturities of three months or less from the date of acquisitionInvestments for the County are reported at fair value

The County may invest its excess funds in any instruments authorized by the Public Funds InvestmentAct of Texas Investments authorized under this Act include but are not limited to the followingObligations of the United States or its agencies and instrumentalities direct obligations of the State ofTexas or its agencies and instrumentalities collateralized mortgage obligations directly issued by afederal agency or instrumentality of the United States the underlying security for which is guaranteed byan agency or instrumentality of the United States other obligations the principal and interest of which areunconditionally guaranteed or insured by or backed by the full faith and credit of the State of Texas orthe United States or their respective agencies and instrumentalities certificates of deposit issued by astate or financial institution domiciled in the State of Texas which is guaranteed or insured by the FederalDeposit Insurance Corporation FDIC or otherwise secured and certain repurchase agreements

The Commissioners Court has adopted a written investment policy regarding the investment of its funds asdefined by the Public Funds Investment Act of 1995 The investments of the County are in compliance withthe Commissioners Courts investment policies

F Receivables and Pavables

Activity between funds that are representative of lending borrowing arrangements outstanding at the endof the fiscal year are referred to as due tofrom other fundsie the current portion of interfund loans oradvances to from other funds ie the non current portion of interfund loans All other outstandingbalances between funds are reported as due tofrom other funds Any residual balances outstandingbetween the governmental activities and business type activities are reported in the governmentwidefinancial statements as internal balances Advances between funds as reported in the fund financialstatements are offset by a fund balance reserve account in applicable governmental funds to indicatethat they are not available for appropriation and are not expendable available financial resources

t0


F Receivables and Payables Continued

All trade and property tax receivables are shown net of an allowance for uncollectibles

G Inventory and Prepaid Items

Inventories of supplies held by the Airport Fund an enterprise fund are valued at the lower of cost firstin firstout or market Estimated cost is used when actual cost figures are not available

Certain payments to vendors reflect costs applicable to future accounting periods These payments arereported as deferred expenditures governmental funds or prepaid expenses proprietary funds in thefund financial statements and as deferred expenditures expenses in the governmentwide statements

H Capital Assets

Capital assets which include property plant equipment and infrastructure assets eg roads bridgessidewalks and similar items are reported in the applicable governmental or businesstype activitiescolumns in the governmentwide statement of net assets The County defines capital assets other thaninfrastructure assets as assets with an initial individual cost of more than5000 and an estimated usefullife in excess of one year The County reports infrastructure assets on a system basis Accordingly theamounts spent for the construction or acquisition of infrastructure assets are capitalized and reportedregardless of their amount In the case of the initial capitalization of general infrastructure assets theCounty chose to include all such items acquired on or after January 1 2003 The County reportedinfrastructure assets acquired prior to January 1 2003 beginning in year ending December 31 2007

As the County constructs or acquires capital assets each period they are capitalized and reported athistorical cost Donated capital assets are recorded at estimated fair market value at the date of donationThe costs of normal maintenance and repairs that do not add to the value of the asset or materially extendassets lives are not capitalized Major outlays for capital assets and improvements are capitalized asprojects are constructed Interest incurred during the construction phase of capital assets of businesstypeactivities is capitalized when acquired with tax exempt debt The amount of interest to be capitalized iscalculated by offsetting interest expense incurred during the period of construction until completion of theproject with interest earned on invested proceeds over the same period

As the County constructs or acquires capital assets each period they are capitalized and reported athistorical cost Donated capital assets are recorded at estimated fair market value at the date of donationThe costs of normal maintenance and repairs that do not add to the value of the asset or materially extendassets lives are not capitalized Major outlays for capital assets and improvements are capitalized asprojects are constructed Interest incurred during the construction phase of capital assets of business typeactivities is capitalized when acquired with tax exempt debt The amount of interest to be capitalized iscalculated by offsetting interest expense incurred during the period of construction until completion of theproject with interest earned on invested proceeds over the same period

Property plant and equipment of the primary government is depreciated using the straight line methodover the following estimated useful lives

Assets Years

Buildings 1050

Improvements other than buildings 1050Infrastructure 2040

Machinery and equipment 515

Office equipment and fixtures 510

37


I Compensated Absences

Vacation benefits are accrued by County employees according to guidelines set in the Countys personnelpolicy This policy states that after completion of one year of service each employee will thereafteraccrue vacation according to the number of years of continuous service Upon termination ofemployment if the employee has completed one year of service he or she will be paid for accrued butunused vacation leave The payment of unused vacation may not exceed 80 hours All vacation isaccrued when incurred in the governmentwide and proprietary fund financial statements A liability forthese amounts is reported in governmental funds only if they have matured for example as a result ofemployee resignations and retirements

Employees are credited with sick leave according to the number of years of continuous service Sickdays may be accumulated up to a maximum of 60 working days 480 hours County personnel policiesstate that unused sick leave benefits will not be paid to employees upon termination therefore no sickleave benefits are accrued

J Longterm Obligations

In the governmentwide financial statements and in proprietary fund types in the fund financial statementslongterm debt and other longterm obligations are reported as liabilities in the applicable governmentalactivities businesstype activities or proprietary fund type statement of net assets Bond premiums anddiscounts as well as issuance costs are deferred and amortized over the life of the bonds using thestraight line method Bonds payable are reported net of the applicable bond premium or discount Bondissuance costs are reported as deferred charges and amortized over the term of the related debt

In the fund financial statements governmental fund types recognize bond premiums and discounts aswell as bond issuance costs during the current period The face amount of debt issued is reported asother financing sources Premiums received on debt issuances are reported as other financing sourceswhile discounts on debt issuances are reported as other financing uses Issuance costs whether or notwithheld from the actual debt proceeds received are reported as debt service expenditures

K Fund Equity

In the fund financial statements governmental funds report reservations of fund balance for amounts thatare not available for appropriation or are legally restricted by outside parties for use for a specific purposeDesignations of fund balance if any represent tentative management plans that are subject to change

L Restricted Net Assets

Net assets are reported as restricted when there are limitations imposed on their use either through theenabling legislations adopted by the County or through external restrictions by creditors grantors or lawsor regulations of other governments

M Use of Estimates

The preparation of the governmentwide and fund financial statements in conformity with generallyaccepted accounting principles requires the County to make estimates and assessments that affect thereported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date offinancial statements and the reported amounts of revenues and expenditures during the reporting periodAccordingly actual results could differ from those estimates

91

NOTE 2 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY

A Deficit Fund Equity

As of December 31 2009 the following funds had deficit equity balances

Fund BalanceFund Net Assets

Nonmajor FundsSheriff Victims Assistance Grant 501

Internal Service Fund

Employee Health Insurance 66459

Steps will be taken to eliminate these deficits in the upcoming fiscal year

NOTE 3 DEPOSITS AND INVESTMENTS

As of December 31 2009 the County had the following investments

Weighted AverageInvestment Type Fair Value Maturity Months

Money Market Funds 140121 NA

Total 140121

Interest Rate Risk

In accordance with the Countysinvestment policy the County manages its exposure to declines in fair valuesby limiting the weighted average maturity of its investment portfolio for investments to less than five yearsfrom the time of purchase Specifically investments of operating funds must have stated final maturities ofthree years or less and investments in capital project funds must have stated final maturities that do notexceed the expected completion date of the project for which the bonds were sold The money market fundsare redeemable in full immediately and therefore do not have a stated weighted average maturity

Credit Risk

Credit risk is the risk that an issuer or counterparty to an investment will not fulfill its obligations The ratingsof securities by nationally recognized rating agencies are designed to give an indication of credit risk It is theCountys policy to limit its investments to those with ratings of not less than A or its equivalent AtDecember 31 2009 the County was not exposed to credit risk

Concentration of Credit Risk

The Countys investment policy requires that the investment portfolio shall be diversified in terms ofinvestment instruments maturity scheduling and financial institutions to reduce the risk of loss resulting fromover concentration of assets in a specific class of investments specific maturity or specific user At yearendthe County was not exposed to concentration of credit risk

39

NOTE 3 DEPOSITS AND INVESTMENTS Continued

Custodial Credit Risk Deposits

In the case of deposits this is the risk that in the event of a bank failure the Countysdeposits may not bereturned to it The Countysinvestment policy requires that deposits at financial institutions be insured by theFDIC and or collateralized by securities pledged to the County by the depository in an amount equal to atleast 110 of the carrying value of deposits held During the fiscal year and at yearend all deposits held inthe depository bank were fully collateralized and therefore the County was not exposed to custodial creditrisk

Custodial Credit Risk Investments

For an investment this is the risk that in the event of the failure of the counterparty the County will not beable to recover the value of its investments or collateral securities that are in the possession of an outsideparty The Countys investment policy requires that securities be held in the name of the County or held onbehalf of the County and that all securities are purchased using the delivery versus payment method As ofDecember 31 2009 and for the year then ended the County was not exposed to any custodial credit risk

Please see Notes 20 21 and 22 for discussions relative to the cash deposits of the Countysthreecomponent units

NOTE 4 RECEIVABLES

Receivables at December 31 2009 for the Countys individual major funds and nonmajor and internal servicefunds in the aggregate including the applicable allowances for uncollectible accounts are as follows

The only receivables not expected to be collected within one year are 53668 of fines receivable reported inthe General Fund

40

Nonmajor andGeneral Airport Other Funds Total

Gross receivables

Ad valorem taxes 12747893 2906561 15654454Sales taxes 1129854 1129854Fines 6797048 6797048Other 45251 40384 126143 211778

Total gross receivables C 20720046 40384 3032704 23793134Less Allowances 5710814 145328 5856142

Total net receivables 15009232 40384 2887376 17936992

The only receivables not expected to be collected within one year are 53668 of fines receivable reported inthe General Fund

40

NOTE 4 RECEIVABLES Continued

The Countysgovernmental funds report deferred revenue in connection with receivables for revenues thatare not considered to be available to liquidate liabilities of the current period The governmental funds alsodefer revenue recognition in connection with resources that have been received but not yet earned At theend of the current fiscal year the various components of deferred revenue and unearned revenue reported inthe governmental funds were as follows

Unavailable

General Fund

Ad valorem taxes receivable

Fines receivable

State grants

Nonmajor FundsAd valorem taxes receivable

14777911774883

Property taxes attach as an enforceable lien on property as of January 1 Taxes are levied on October 1 andpayable by the following January 31 which comprises the collection dates for the current tax roll The Countyof Victoria Tax Assessor Collector bills and collects its own property taxes

The County is permitted by State Statute to levy taxes up to 080 per 100 of assessed valuation Thecombined tax rate for the budgetary year ended December 31 2009 was03986 per 100 which meansthe County has a tax margin of04014 per 100

NOTE 5 DUE FROM OTHER GOVERNMENTS

Various funds of the County reported amounts due from other governments as of the end of the current yearThese amounts are comprised of the following at December 31 2009

Contract reimbursements

Federal and state grantsAlcohol and bingo taxes

General

43465332954

49492

517099

Airport

142797

440

Total

165435731774883

440

303288 3574144 3877432

3555962 18640366 22196328

Unearned

15065782

Nonmajor andnthPr Fiinri

1715811121520

142797 1293101

Total

606234129727149492

1952997

41

NOTE 6 CAPITAL ASSETS

The Countyscapital asset activity for the year ended December 31 2009 was as follows

Businesstype activitiesCapital assets not being depreciated

Land

Beginning

149433

EndingBalance Increases Decreases Balance


419735

Capital assets being depreciated

Capital assets not being depreciated

Machinery and equipment 783794 16898 800692

Land 2125950 176844 2302794

Total capital assets not being depreciated 2125950 176844 2302794

Capital assets being depreciated

20185412

Less accumulated depreciation for

Machinery and equipment 12390437 1000820 466110 12925147Buildings 18833390 151042 18682348Improvements 13981621 60798 82836 13959583Infrastructure 114138241 739005 114877246

Total capital assets being depreciated 159343689 1800623 699988 160444324

Less accumulated depreciation forMachinery and equipment 8135246 948386 411375 8672257Buildings 7516389 347146 151042 7712493Improvements 8159689 351525 82836 8428378Infrastructure 113188573 88225 113276798

Total accumulated depreciation 136999897 1735282 645253 138089926

Total capital assets being depreciated net 22343792 65341 54735 22354398

Govenmental activities capital assets net 24469742 242185 54735 24657192

Businesstype activitiesCapital assets not being depreciated

Land 149433 149433Construction in progress 270302 270302


Capital assets being depreciatedMachinery and equipment 783794 16898 800692Buildings 2478519 2478519Improvements 16285015 621186 16906201

Total capital assets being depreciated 19547328 638084 20185412

Less accumulated depreciation forMachinery and equipment 630200 35210 665410Buildings 1693215 104285 1797500Improvements 6379097 775670 7154767

Total accumulated depreciation 8702512 915165 9617677

Total capital assets being depreciated net 10844816 277081 10567735

Businesstype activites capital assets net 10994249 6779 10987470

42

NOTE 6 CAPITAL ASSETS Continued

Depreciation expense was charged to functionsprograms of the County as follows

Governmental acitivities


Public health

Total depreciation expense governmental activities

Business type activitiesAirportCommissaryNavarro project

Total depreciation expense businesstype activites

NOTE 7 LESSOR AGREEMENTS

576250536273480782

55211

86766

1735282

681962

1632231571

915165

The Airport Fund a major enterprise fund leases land and buildings to various unrelated third partiesApproximately 25 of the Airport Funds capital assets are used to operate the Airport activities The totalcost of the buildings is1111046 and the carrying value is 65658 The total cost of the improvements tothe land and buildings is 13784792and the carrying value is8167841 Accumulated depreciation on allassets in the Airport Fund is7280155 Following is an analysis of minimum future rentals due the AirportFund under noncancelable lease agreements as of December 31 2009

Year EndingDecember 31

2010 1526472011 1381432012 1277832013 1002832014 97783

616639Thereafter 415523

1032162

43

NOTE 7 LESSOR AGREEMENTS Continued

The Navarro Project Fund a major enterprise fund also leases building space Approximately 50 of thebuilding space is used by the Victoria CityCounty Health Department The remaining 50 is leased tovarious unrelated third parties The total cost of the building leased is1367473 and the carrying value is615363 The total cost of the improvements to the building leased is3121408 and the carrying value is1583591 Accumulated depreciation on all leased assets in the Navarro Project Fund is2289928Following is an analysis of minimum future rentals due the Navarro Project Fund under noncancelable leaseagreements as of December 31 2009

Year EndingDecember 31

2010 2271842011 1871442012 1724042013 1724042014 118606

877742

NOTE 8 EMPLOYEES RETIREMENT PLAN

The County provides retirement disability and death benefits for all of its fulltime employees through anontraditional defined benefit pension plan in the statewide Texas County and District Retirement SystemTCDRS The Board of Trustees of TCDRS is responsible for the administration of the statewide agentmultiple employer public employee retirement system consisting of 586 nontraditional defined benefit pensionplans TCDRS in the aggregate issues a comprehensive annual financial report CAFR on a calendar yearbasis The CAFR is available upon written request from the TCDRS Board of Trustees at P O Box 2034Austin Texas 787682034

The plan provisions are adopted by the governing body of the employer within the options available in theTexas state statutes governing TCDRS TCDRS Act Members can retire at ages 60 and above with eight ormore years of service with 20 years of service regardless of age or when the sum of their age and years ofservice equals 75 or more Members are vested after eight years of service but must leave their accumulatedcontributions in the plan to receive any employer financed benefit Members can withdraw contributions in alump sum via partial payments however these members are not entitled to any amounts contributed by theiremployer

Benefit amounts are determined by the sum of the employees contributions to the plan with interest andemployer financed monetary credits The level of these monetary credits is adopted by the governing body ofthe employer within the actuarial constraints imposed by the TCDRS Act so that the resulting benefits can beexpected to be adequately financed by the employers commitment to contribute At retirement death ordisability the benefit is calculated by converting the sum of the employeesaccumulated contributions and theemployer financed monetary credits to a monthly annuity using annuity purchase rates prescribed by theTCDRS Act

A Funding Policv

The employer has elected the annually determined contribution rate Variable Rate plan provisions of theTCDRS Act The plan is funded by monthly contributions from both employee members and theemployer based on the covered payroll of employee members Under the TCDRS Act the contributionrate of the employer is actuarially determined annually It was 1131 for calendar year 2009 Thedeposit rate payable by the employee members is the rate of 700 as adopted by the governing body ofthe employer The employee deposit rate and the employer contribution rate may be changed by thegoverning body of the employer within the options available in the TCDRS Act

44

J

NOTE 8 EMPLOYEES RETIREMENT PLAN Continued

B Annual Pension Cost

For the employersaccounting year ending December 31 2009 the annual pension cost for the TCDRSplan for its employees was2692545 and the actual contributions were2692545

The annual required contributions were actuarially determined as a percent of the covered payroll of theparticipating employees and were in compliance with GASB Statement No 27 parameters based on theactuarial valuation as of December 31 2008 the basis for determining the contribution rate for calendaryear 2009 The December 31 2008 actuarial valuation is the most recent valuation

C Actuarial Valuation and Trend Information

Actuarial cost method

Amortization method

Amortization period in yearsAsset valuation method

Assumptions

Actuarial Valuation Information

123106 123107 123108

entry agelevel percentage ofpayroll closed15

SAF 10yr smoothedvalue ESF Fund value

entry age

level percentage ofpayroll closed15

SAF 10 yr smoothedvalue ESF Fund value

entry agelevel percentage ofpayroll closed15

SAF 10yr smoothedvalue ESF Fund value

Investment return 1 800 800 800

Projected salary increases 1 530 530 530

Inflation 350 350 350

Cost of living adjustments 000 000 000

includes inflation at the stated rate

Trend Information for the Retirement Plan for theEmployees of the County of Victoria Texas

Fiscal Annual Percentage Net

Year Ending Pension of APC Pension

December 31 Cost APC Contributed Obligation2007 2308829 100

2008 2552053 1002009 2692545 100

Schedule of Funding Progress for the Retirement Planfor the Employees of the County of Victoria Texas

UAAL as aActuarial Actuarial Acuarial Unfunded Annual PercentageValuation Value of Accrued AAL Funded Covered of Covered

Date Assets Liability AAL UAAL Ratio Payroll I Payrolla b ba ab c bac

12312006 49547664 57844646 8296982 8566 18962335 437612312007 54352276 63178459 8826183 8603 20431958 432012312008 55248498 68407596 13159098 8076 22538550 5838

The annual covered payroll is based on the employee contributions received by TCDRS for theyear ending with the valuation date

45

NOTE 9 OPTIONAL GROUP TERM LIFE FUND

A Plan Description

The County participates in a cost sharing multiple employer defined benefit groupterm life insurance planoperated by TCDRS This plan is referred to as the Optional Group Term Life Fund OGTLF Thisoptional plan provides group term life insurance coverage to current eligible employees and if elected byemployers to retired employees The coverage provided to retired employees is a postemploymentbenefit other than pension benefits OPEB Retired employees are insured for5000

The OGTLF is a separate trust administered by the TCDRS board of trustees TCDRS issues a publiclyavailable CAM that includes financial statements and required supplementary information for theOGTLF This report may be obtained by writing to the TCDRS PO Box 2034 Austin TX 787682034or by calling 800 8237782 TCDRS CAFR is also available at wwwtcdrsorg

B Funding Policv

Each participating employer contributes to the OGTLF at a contractually required rate An annual

actuarial valuation is performed and the contractual rate is determined using the unit credit method forproviding one year term life insurance The County contributions to the OGTLF for the years endedDecember 31 2009 2008 and 2007 were 7171869865 and 63187 respectively which equaledthe contractually required contributions each year

NOTE 10 OTHER POST EMPLOYMENT BENEFITS

In addition to providing pension benefits the County provides its retirees with post employment health carebenefits In order for a County employee to be eligible for this benefit their age combined with their years ofservice must equal seventy five 75 or they must have attained the age of sixty 60 and with eight 8 yearsof service or they must have twenty 20 or more years of service with Victoria County and can retire at anyage with full benefits

The County pays 50 of the premium cost for each retiree under the age of 65 provided they worked forVictoria County for twenty 20 or more years If the retiree worked less than twenty 20 years for VictoriaCounty the County will pay 40 of the premium cost The County also pays 10 of the premium cost fordependents who may be covered under the retirees under 65 health insurance planThe County pays 50 of the premium cost for medical coverage only for each retiree over the age of 65 TheCounty does not contribute to the premium cost for dependents for retirees over the age of 65

Other post employment benefits are expensed and funded on a payasyougo basis The County recognizesthe cost of providing these benefits as a payroll expense expenditure in an operating fund with correspondingrevenue in the Employee Health Insurance Fund Payments for health insurance are shown as an expense inthe Employee Health Insurance Fund The cost of providing these benefits for 46 and 46 retirees and activeemployees for the years 2009 and 2008 respectively is not separated Total payments to the EmployeeHealth Insurance Fund by retirees were95600 in 2009 and 94345 in 2008

NOTE 11 EMPLOYEES HEALTH INSURANCE FUND

The County maintains a selfinsurance internal service fund designed to pay comprehensive health benefitsincurred by its participants The fund assumes all risk up to 85000 of claims per participant annually afterthis a reinsurance policy pays any remaining claims for the remainder of the year up to 915000 of claims perparticipant Premiums are charged to the individual funds based on a predetermined cost per employee anddependent These amounts are recorded as operating revenue in the internal service fund and as operatingexpendituresexpenses in the respective funds Any claims that have been incurred but not reported as ofthe balance sheet date are shown as current liabilities in the internal service fund and have been charged asan operating expense for that period This amount was determined by the Countys health plan administrator

46

NOTE 11 EMPLOYEES HEALTH INSURANCE FUND Continued

As of December 31 2009 the fund had estimated liabilities for outstanding claims of 151954 There was adeficit unrestricted net assets of 66459 as of December 31 2009 an increase of 157481 from 2008

Below is a reconciliation of claims liabilities reported in the Employees Health Insurance Fund for the yearsnoted

The above schedule reflects only those claims for which the County was liable Information on claims paid bythe insurance carrier under the reinsurance policy was not available Settled claims resulting from insuredrisks have not exceeded insurance coverage in any of the past three fiscal years

NOTE 12 DEFERRED COMPENSATION PLAN

The County offers its employees a deferred compensation plan created in accordance with Internal RevenueCode Section 457 The plan available to all County employees permits them to defer a portion of their salaryuntil future years Except in specified circumstances the deferred compensation is not available to employeesuntil termination retirement death or unforeseeable emergency

During 1998 the County transferred plan assets to an independent trust for the exclusive benefit of theparticipants and their beneficiaries

NOTE 13 RISK MANAGEMENT

The County is exposed to various risks of loss related to torts theft of damage to and destruction of assets errorsand omissions injuries to employees and natural disasters The County purchased commercial insurance tocover risks associated with potential claims in 2009 There were no significant reductions in coverage in the pastfiscal year and there were no settlements exceeding insurance coverage for each of the past three fiscal years

47

Payable PayableYear Jan 1 Incurred Paid Dec 31

2000 193739 2083065 1937285 3395192001 339519 2617446 2211485 7454802002 745480 1546813 1913502 3787912003 378791 1635920 1742013 2726982004 272698 1663809 1315452 6210552005 621055 1548112 1951610 2175572006 217557 2969408 2903915 2830502007 283050 1995710 1807241 4715192008 471519 2132631 2366400 2377502009 237750 2765719 2851515 151954

The above schedule reflects only those claims for which the County was liable Information on claims paid bythe insurance carrier under the reinsurance policy was not available Settled claims resulting from insuredrisks have not exceeded insurance coverage in any of the past three fiscal years

NOTE 12 DEFERRED COMPENSATION PLAN

The County offers its employees a deferred compensation plan created in accordance with Internal RevenueCode Section 457 The plan available to all County employees permits them to defer a portion of their salaryuntil future years Except in specified circumstances the deferred compensation is not available to employeesuntil termination retirement death or unforeseeable emergency

During 1998 the County transferred plan assets to an independent trust for the exclusive benefit of theparticipants and their beneficiaries

NOTE 13 RISK MANAGEMENT

The County is exposed to various risks of loss related to torts theft of damage to and destruction of assets errorsand omissions injuries to employees and natural disasters The County purchased commercial insurance tocover risks associated with potential claims in 2009 There were no significant reductions in coverage in the pastfiscal year and there were no settlements exceeding insurance coverage for each of the past three fiscal years

47

NOTE 14 LONGTERM DEBT

A Changes In Longterm Liabilities

Long term liability activity for the year ended December 31 2009 was as follows

Beginning Ending Due WithinBalance Additions Reductions Balance One Year


Bonds and certificates payableCertificates of obligation 3370000 365000 3005000 380000General obligation bonds 3035000 1040000 1995000 460000

Total bonds payable 6405000 1405000 5000000 840000

Capital leases payable 1574094 282872 1000519 856447 499683

Compensated absences 951294 1228762 1212310 967746 205571

Total governmental activitylongterm liabilities 8930388 1511634 3617829 6824193 1545254

Business type activitiesBonds

Revenue bonds 1005000 85000 920000 90000Less Issuance discount 2632 310 2322

Total bonds payable 1002368 84690 917678 90000

Compensated absences 29847 31917 40896 20868 7224

Total businesstype activitylong term liabilities 1032215 31917 125586 938546 97224

For the governmental activities compensated absences are generally liquidated by the General FundB General Obligation Certificates and Bonds

Longterm liabilities at December 31 2009 are comprised of the following issues

1650000 1998 Unlimited Tax Road Bonds due in annual installments rangingfrom 175000to 205000through 2013 interest varying between 45and475 760000

2700000 1998 Limited Tax Courthouse Restoration Bonds due in annualinstallments ranging from 285000 to 335000through 2013 interest varyingbetween 41 and 44 1235000

5000000 2001 Certificates of Obligation Bridge Street Annex due in annualinstallments ranging from 380000 to 485000through 2016 interest varyingbetween355and 45

3005000

Total general obligation debt 5000000

48

NOTE 14 LONG TERM DEBT Continued

B General Obligation Certificates and Bonds Continued

Year Ending Governmental Activities

December 31 Principal Interest Total

2010 840000 198685 10386852011 880000 162278 10422782012 920000 123637 10436372013 965000 82584 10475842014 445000 51853 496853

20152016 950000 42968 992968

Total capital leases

5000000 662005 5662005

C Capital Leases

Capital leases payable at December 31 2009 are comprised of the following individual leases

Lease purchase agreement on the construction of a regional juvenile detentionfacility The original amount of the lease entered into in 1995 was refinanced inin 2004 for2351458 It bears interest at a rate of569 and requires monthly

Principal

installments of 41626 123703

Lease purchase agreement on computer equipment and software for various

499683

County departments The original amount of the lease entered into in 2006 was

534907

1240554 It bears interest at a rate of432 and requires annual installments

356764

of 273929 514259

Lease purchase agreement on seven 2009 four door sedans used by the

856447

SheriffsDepartment The original amount of the lease entered into in 2009 was

908289

282872 The lease is payable in three annual installments of 99472 andbears interest at a rate of560 183399

Lease purchase agreement on two tractors and a mower used by Precinct 3The original amount of the lease entered into in 2008 was 105324 The leaseis payable in three annual installments of 36647 and bears interest at a rate445

35086

Total capital leases 856447

The present value of the capital leases after deduction of imputed interest is 856447

Year Ending Governmental Activities

December 31 Principal Interest Total

2010 499683 35224 5349072011 356764 16618 373382

856447 51842 908289

49

NOTE 14 LONG TERM DEBT Continued

D Revenue Bonds

Revenue bonds payable is comprised of the following

1650000 1997 Victoria County Public Facilities Corporation Lease RevenueBonds Series 1997 due in annual installments ranging from 90000 to140000through 2017 interest rate varying between 535 and 600 920000

Total revenue bonds

Annual debt service requirements to maturity for revenue bonds are as follows

Year Ending Businesstype ActivitiesDecember 31 Principal Interest Total

2010 90000 51928 1419282011 100000 46465 1464652012 105000 40545 1455452013 110000 34200 1442002014 115000 27450 142450

20152017 400000 36900 436900

920000 237488 1157488

NOTE 15 INTERFUND RECEIVABLES PAYABLES AND TRANSFERS

A Interfund Receivables and Pavables

920000

At times during the fiscal year the various funds of the County were involved in transactions that createdinterfund receivable and payable balances These transactions related to such things as the purchase ofgoods by one fund on behalf of another and the receipt of revenue in one fund that belongs to or isdesignated for another fund In addition to the short term amounts the General Fund has made longtermloans to the Navarro Project Fund a proprietary enterprise fund type during the years endedDecember 31 1998 through December 31 2009 The amounts of the loans total1106555 and are beingused to finance the construction and operation of the Navarro lease project

50

NOTE 15 INTERFUND RECEIVABLES PAYABLES AND TRANSFERS Continued

A Interfund Receivables and Payables Continued

Interfund receivable and payable balances as of December 31 2009 were as follows

Due tofrom other funds

Receivable Fund

General

Nonmajor Governmental

Road and Bridge Pct 2Road and Bridge Pct 4FEMA Hazard MitigationVarious DR TX

Elections Chapter 19

Total

Advances from to other funds

Receivable Fund

General

Total

B Interfund Transfers

Payable Fund Amount

Nonmajor Governmental 816974Airport 54707Navarro Project 353

Commissary 212

Internal Service 145

Private Purpose Trust 35000

907391

Nonmajor GovernmentalFEMA Hazard Mitigation Various DR TX 81783

FEMA Hazard Mitigation Various DR TX 77682

Road and Bridge Pct 4 200

Election Admin Special 797

160462

1067853

Payable Fund Amount

Navarro Project 50848

50848

Each year various funds of the County transfer funds to other funds The most significant of these are theplanned transfers from the CountysGeneral Fund to the Health Department Fund a Special RevenueFund These transfers are intended to provide the necessary resources to meet the operating obligationsof the receiving fund During the current fiscal year transfers between funds consisted of the following

Transfers In

Transfers Out

General

Nonmajor Governmental

Nonmajor Internal

General Governmental Airport Service Total

1867048 409614 1200000 3476662

187931 382581 570512

187931 2249629 409614 1200000 4047174

NOTE 16 RELATED PARTY TRANSACTIONS

During fiscal year 2009 the CountysGeneral Fund entered into transactions the Victoria County ChildWelfare Board a discretely presented component unit of the County whereby the County contributed to theBoard 30000 for operational purposes

51

NOTE 17 CONTINGENCIES

The County is exposed to the risk of contingent liabilities in the ordinary course of its operations Specificallysuch risks arise as a result of the Countys participation in various state and federal grant programs and as aresult of threatened and pending litigation Disallowed costs could result if County expenditures made under itsgrants programs are found to be improper in that they violate state or federal regulations Such disallowed costswould have to be paid back to the granting agency from the Countys General Fund The County is not aware ofany costs that have been disallowed in the current year and does not anticipate that any will be

As of December 31 2009 the County was involved in various matters of litigation It is the opinion of theCountyslegal counsel that any exposure faced by the County as a result of these matters was minimalFurthermore any losses incurred would in all probability be covered by liability insurance carried by the CountyBased on the above information the accompanying financial statements do not reflect any accrual for contingentliabilities as of the end of the current fiscal year

NOTE 18 SUBSEQUENT EVENT

In April 2010 the County issued Certificates of Obligation Series 2010 of8500000 and Limited TaxRefunding Bonds Series 2010 of3830000 The proceeds from the certificates will be used to pay variouscontractual obligations for infrastructure improvements and a new radio system and to pay the costs ofissuance of the certificates Also approximately 25million has been transferred to the Countys GeneralFund for reimbursement of prior costs incurred primarily for airport improvements The bonds were issuedfor the purpose of refunding a portion of the Countys outstanding debt in order to lower the overall annualdebt service requirements of the County and to pay the costs of issuance of the bonds The Series 2010Certificates are due in annual installments ranging from 185000 to 605000 through 2030 with interestvarying from 200 to 400 The Series 2010 Refunding Bonds are due in annual installments ranging from440000 to 955000 through 2016 with interest varying from200 to 300

NOTE 19 ADJUSTMENTS TO AND RESTATEMENTS OF BEGINNING BALANCES

The beginning unreserved undesignated fund balances for two nonmajor special revenue funds wererestated to properly reflect a December 31 2008 receivable balance The Road and Bridge Pct 4 fundbalance was increased by 40667 and the FEMA Hazard Mitigation 1709 DR TX fund balance wasdecreased by 40667 This restatement had no effect on the December 31 2008 governmental activitiesnet asset balance

NOTE 20 VICTORIA COUNTY NAVIGATION DISTRICT

As described in Note 1 the Victoria County Navigation District is a component unit of the County It is

reported in a separate column to emphasize that it is legally separate for accounting purposes from theCounty Following are note disclosures relating to this component unitA Organization

The Victoria County Navigation District the District was created by avote of the electorate of VictoriaCounty Texas at an election held on February 4 1947 under the provisions of Article 8263hVATSnow codified into Chapter 62 Texas Water Code The Board of Navigation and the CanalCommissioners the Directors is the level of government which has oversight responsibility and controlover all activities related to the Districtsactivities in the CountyThe Directors are appointed by the Commissioners Court of the County and have decision makingauthority the power to designate management the responsibility to significantly influence operations andprimary accountability for fiscal matters including taxing authority

B Summary of Significant Accounting Policies

The accounting and reporting policies of the District conform to GAAP as applicable to governmentalunits For inclusion in this report the Districts operations are reported in a single Governmental Fund Type

52

NOTE 20 VICTORIA COUNTY NAVIGATION DISTRICT Continued

C Deposits and Investments

The Districts funds are deposited and invested under the terms of the Victoria Countys depositorycontract The depository bank First Victoria National Bank deposits for safekeeping and trust withVictoria Countysagent bank approved pledged securities in an amount sufficient to protect the Districtsfunds on a daytoday basis during the period of the contract The pledgeapproved securities are waivedonly to the extent of the depository banksdollar amount of FDIC insurance

As of December 31 2009 the District had the following investments

Weighted AverageInvestment Type Amortized Cost Maturity Days

Public Funds Investment Pool 1791 42

The pool operates in a manner consistent with the Securities and Exchange CommissionsSECRule2a7of the Investment Company Act of 1940 but are not registered with the SEC as aninvestment company Instead the regulatory oversight for the pool is the State of Texas The pool usesamortized cost rather than market value to report net assets to compute share prices Accordingly thefair value of the position in this pool is the same as the value of the shares in the pool

Interest Rate Risk

In accordance with the Districtsinvestment policy the District manages its exposure to declines in fairvalues by limiting the weighted average maturity of its investment portfolio to less than one year from thetime of purchase TheLOGICInvestment Poolsweighted average maturity cannot exceed 60 daysCredit Risk

The Districts investments in the public funds investment pool include those with the LOGICInvestment Pool The pool operates in full compliance with the Public Funds Investment Act and is ratedAAAm by Standard Poors

Concentration of Credit Risk

The Districtsinvestment policy requires that the investment portfolio shall be diversified in terms ofinvestment instruments maturity scheduling and financial institutions to reduce the risk of loss resultingfrom over concentration of assets in a specific class of investments specific maturity or specific user Atyearend the District was not exposed to concentration of credit risk

Custodial Credit Risk Deposits

In the case of deposits this is the risk that in the event of a bank failure the Districts deposits may not bereturned to it During the fiscal year and at year end all deposits held in the depository bank were fullycollateralized and therefore the District was not exposed to custodial credit risk

Custodial Credit Risk Investments

For an investment this is the risk that in the event of the failure of the counterparty the District will not beable to recover the value of its investments or collateral securities that are in the possession of an outsideparty All of the Districtsinvestments are invested in the LOGICInvestment Pool and it has nocustodial credit risk

53


D Receivables

Receivables at December 31 2009 consist of the following

The Districtsgovernmental funds report deferred revenue in connection with receivables for revenuesthat are not considered to be available to liquidate liabilities of the current period The governmentalfunds also defer revenue recognition in connection with resources that have been received but not yetearned

At the end of the current fiscal year the various components of deferred revenue and unearned revenuereported in the governmental funds were as follows

Unavailable

Debt

Total

General Fund

General Service

Ad valorem taxes receivable

Fund Fund Total

Gross receivablesAccounts 53455 53455Ad valorem taxes 955311 254708 1210019

Total gross receivables 1008766 254708 1263474

Less Allowances 44184 11520 55704

Total net receivables 964582 243188 1207770

The Districtsgovernmental funds report deferred revenue in connection with receivables for revenuesthat are not considered to be available to liquidate liabilities of the current period The governmentalfunds also defer revenue recognition in connection with resources that have been received but not yetearned

At the end of the current fiscal year the various components of deferred revenue and unearned revenuereported in the governmental funds were as follows

The Districts ad valorem property tax is levied each October 1 on the assessed value listed as of the priorJanuary 1 for all real and business personal property located in the District Taxes are delinquent byFebruary 1 following the October 1 levy date A statutory lien becomes effective on all property withunpaid taxes as of January 1 of the year following the assessment

E Due From Other Governments

At December 31 2009 the Victoria County Tax Assessor and Collector held tax receipts that had beencollected for but not yet remitted to the District These amounts are reported as due from othergovernments in the governmentwide and fund financial statements

54

Unavailable Unearned Total

General Fund

Ad valorem taxes receivable 68056 1223936 1291992Debt Service Fund

Ad valorem taxes receivable 20421 321476 341897

88477 1545412 1633889

The Districts ad valorem property tax is levied each October 1 on the assessed value listed as of the priorJanuary 1 for all real and business personal property located in the District Taxes are delinquent byFebruary 1 following the October 1 levy date A statutory lien becomes effective on all property withunpaid taxes as of January 1 of the year following the assessment

E Due From Other Governments

At December 31 2009 the Victoria County Tax Assessor and Collector held tax receipts that had beencollected for but not yet remitted to the District These amounts are reported as due from othergovernments in the governmentwide and fund financial statements

54


F Prepaid Lease Relating to Land Purchase

The PFC purchased 1800 acres of land inclusive of an appurtenant water rights permit in March 2007for a total of5604871 The PFC leased the land to the District for a 20year period for3267071which was paid in advance The PFC immediately sold the consumptive water rights permit to the Districtfor2337800 which immediately sold them to the City of Victoria Texas The prepaid lease amount asof December 31 2009 was2817848 This amount is recorded as an asset in the General Fundbalance sheet at year end The PFC recorded the advance payment as deferred revenue as ofDecember 31 2009 in the same amount The asset and deferred revenue amounts were eliminated inthe governmentwide financial statements since the cost of the land is included as part of the capitalassets of the governmental activities

G Capital Assets

The Districts capital asset activity for the year ended December 31 2009 was as follows

55

Beginning EndingBalance Increases Decreases Balance


Capital assets not being depreciatedLand 11897356 11897356Construction in progress 214596 4459965 4674561


Capital assets being depreciatedImprovements 8347153 12500 8359653MPRRMain Line Bridge 1493134 1493134Equipment 9995 9995

Total capital assets being depreciated 9850282 12500 9862782

Less accumulated depreciation forImprovements 5620181 257147 5877328

MPRRMain Line Bridge 1194096 27677 1221773Equipment 6771 903 7674

Total accumulated depreciation 6821048 285727 7106775

Total capital assets being depreciated net 3029234 273227 2756007

Governmental activities capital assets net 15141186 4186738 19327924

Depreciation expense of 285727 was charged to the general government functionprogram in 2009

55


H Longterm Debt

The following is a summary of general obligation bond transactions for the year ended December 31 2009for governmental activities

Bonds payable at January 1 2009Additions

Retirements

Bonds payable at December 31 2009

Bonds payable at December 31 2009 are comprised of the following issues

2003 General Obligation Refunding Bonds due in annual installments of variousamounts beginning in 2005 through February 15 2014 interest rate varies basedon year of maturity and ranges from 30 to 375

2008 Revenue Bonds due in annual installments of various amounts beginning in2009 through June 1 2028 interest rate of 48

Total

8015000

480000

7535000

1630000

5905000

7535000

Annual debt service requirements to maturity for the general obligation bonds are as follows

Maturities Principal2010 5000002011 5150002012 5400002013 5650002014 585000

20152019 13700002020 2024 17350002025 2028 1725000

Total 7535000

Interest Total

329641 829641310423 825423290014 830014267808 832808244042 8290421000800 2370800630120 2365120

170760 1895760

3243608 10778608

In 2004 the District issued2860000 of General Obligation Refunding Bonds with interest rates varyingfrom 30to 375 to currently refund the Districts General Obligation Bonds Series 1994 with interestrates varying from 50to 70 and to provide funding for costs of issuance As a result the Series1994 bonds are considered defeased and the liabilities have been removed from the governmentalactivities column on the statement of net assets The 1994 Series that was refunded has1625000 ofbonds outstanding at December 31 2009

I Risk Management

The District is exposed to various risks of loss related to torts theft of damage to and destruction ofassets errors and omissions injuries to employees and natural disasters The District purchasedcommercial insurance to cover risks associated with potential claims during fiscal year 2009 There wereno significant reductions in coverage in the past fiscal year and there were no settlements exceedinginsurance coverage for each of the past three fiscal years

56

NOTE 21 VICTORIA COUNTY CHILD WELFARE BOARD

As described in Note 1 the Victoria County Child Welfare Board the Board is a component unit of theCounty It is reported in a separate column to emphasize that it is legally separate for accounting purposesfrom the County Following are note disclosures relating to this component unit

A Organization

The Commissioners Court of Victoria County Texas established the Board on August 8 1938 The

Board is a countywide jointly financed state administered program of child protection to meet the needsof abused neglected and abandoned children and children with special needs The board members ofthe Board have decision making authority the power to designate management the responsibility tosignificantly influence operations and primary accountability for fiscal matters The Board is considered acomponent unit of the County under the guidelines established by GASB Statement No 14


The accounting and reporting policies of the Board conform to GAAP as applicable to governmentalunits For inclusion in this report the Boards operations are reported in a single Governmental FundType

C Deposits and Investments

The Board has deposits that are held by one financial institution within Victoria County Texas At

December 31 2009 and 2008 the carrying amount of the Boardsdeposits was 188167and 179257respectively The bank balances were 188167 and 180097 respectively The deposits arecollateralized by FDIC coverage as follows

Insured by FDIC

Amount of Boardsdeposits uncollateralizedby financial institutions

Total

Texas Statutes authorize the Board to invest in

1 obligations of the U S Treasury or its agencies

2 direct obligations of the State of Texas or its agencies

2009 2008

188167 180097

188167 180097

3 other obligations the principal of and interest on which are unconditionally guaranteed or insuredby the State of Texas or the United States

4 obligations of states agencies counties or cities rated A or better by a national investment ratingfirm

5 certificates of deposit that are insured by the FDIC or secured by obligations having a marketvalue of at least the principal amount of the certificates and

6 fully collateralized direct repurchase agreements

57

NOTE 21 VICTORIA COUNTY CHILD WELFARE BOARD Continued

C Deposits and Investments Continued

As of December 31 2009 the Board held 122141 invested in FDIC insured certificates of deposit TheBoard held no other investments during the current fiscal year

D Budgetary Legal Compliance

For the fiscal year ended December 31 2009 the Board complied with budgetary restrictions except asfollows

Fund Variance

General Fund

Accounting fees 440

NOTE 22 CITIZENS MEDICAL CENTER

As described in Note 1 Citizens Medical Center is a component unit of the County It is reported in aseparate column to emphasize that it is legally separate for accounting purposes from the County Followingare note disclosures relating to this component unit

A Organization

Citizens Medical Center the Medical Center is a 368bed acute care hospital that is a component unitof the County The Medical Center is operated by a Board of Directors that is appointed by the CountyCommissioners Court Its primary mission is to provide health care services to the citizens of the CountyThe Medical Center primarily earns revenues by providing inpatient outpatient skilled nursing homehealth and emergency care services to patients in Victoria County and surrounding areas

The financial statements of the Medical Center also include accounts of the Citizens Medical CenterFoundation the Foundation The Foundation was established to foster support and encourage theactivities and purposes of the Medical Center and to advance its objectives including sponsorship ofand assistance to the Medical Center


The financial statements of the Medical Center have been prepared on the accrual basis of accountingusing the economic resources measurement focus Revenues expenses gains losses assets andliabilities from exchange and exchange like transactions are recognized when the exchange transactiontakes place Operating revenues and expenses include exchange transactions Investment income andinterest on capital assets related debt are included in nonoperating revenues and expenses The MedicalCenter first applies restricted net assets when an expense or outlay is incurred for purposes for whichboth restricted and unrestricted net assets are available

The Medical Center prepares its financial statements as a businesstype activity in conformity withapplicable pronouncements of GASB Pursuant to GASB Statement No 20 the Medical Center haselected to apply the provisions of all relevant pronouncements of the Financial Accounting StandardsBoard FASB that were issued on or before November 30 1989 and do not conflict with or contradictGASB pronouncements

58

NOTE 22 CITIZENS MEDICAL CENTER Continued

B Summary of Significant Accounting Policies Continued

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in theUnited States of America requires management to make estimates and assumptions that affect thereported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenses during the reporting periodActual results could differ from those estimates

Cash Equivalents

The Medical Center considers all liquid investments with original maturities of three months or less to becash equivalents At June 30 2009 cash equivalents consisted primarily of money market mutual funds

Risk Management

The Medical Center is exposed to various risks of loss from torts theft of damage to and destruction ofassets business interruption errors and omissions employee injuries and illnesses natural disastersand employee health dental and accident benefits Commercial insurance coverage is purchased forclaims arising from such matters other than general and professional liability employee health claims andworkers compensation Settled claims have not exceeded this commercial insurance coverage in any ofthe three preceding years

The Medical Center is self insured for a portion of its exposure to risk of loss from general andprofessional liability employee health claims and workers compensation Annual estimated provisionsare accrued for the self insured portion of general and professional liability employee health claims andworkers compensation and include an estimate of the ultimate costs for both reported claims and claimsincurred but not yet reported

Investments in Debt Securities

Investments in debt securities are carried at fair value which is determined using quoted market pricesInvestment income includes dividend and interest income realized gains and losses on investments soldand the net change for the year in the fair value of investments carried at fair value

Supplies

Supply inventories are stated at the lower of cost determined using the firstin firstout method ormarket

Capital Assets

Capital assets are recorded at cost at the date of acquisition or fair value at the date of donation ifacquired by gift Depreciation is computed using the straight line method over the estimated useful life ofeach asset Assets under capital lease obligations and leasehold improvements are depreciated over theshorter of the lease term or their respective estimated useful lives

The following estimated useful lives are being used by the Medical CenterLand improvements 5 to 25 yearsBuildings building improvements and fixed equipment 3 to 40 yearsMajor movable equipment 3 to 25 years

59



Net Assets

Net assets of the Medical Center are classified in three components Net assets invested in capitalassets net of related debt consist of capital assets net of accumulated depreciation and reduced by theoutstanding balances of borrowings used to finance the purchase or construction of those assetsRestricted expendable net assets are noncapital assets that must be used for a particular purpose asspecified by creditors grantors or donors external to the Medical Center including amounts depositedwith trustees as required by revenue bond indentures reduced by the outstanding balances of any relatedborrowings Unrestricted net assets are remaining assets less remaining liabilities that do not meet thedefinition of invested in capital assets net of related debt or restricted expendable

Net Patient Service Revenue

The Medical Center has agreements with third party payers that provide for payments to the MedicalCenter at amounts different from its established rates Net patient service revenue is reported at theestimated net realizable amounts from patients third party payers and others for services rendered andincludes estimated retroactive revenue adjustments and a provision for uncollectible accountsRetroactive adjustments are considered in the recognition of revenue on an estimated basis for the periodthe related services are rendered and such estimated amounts are revised in future periods asadjustments become known

Deferred Financing Costs

Deferred financing costs represent costs incurred in connection with the issuance of long term debtSuch costs are being amortized over the term of the related bond issues using the straight line methodThe unamortized amount of deferred financing costs is included in other assets on the balance sheet

Charity Care

The Medical Center provides care without charge or at amounts less than its established rates to patientsmeeting certain criteria under its charity care policy Because the Medical Center does not pursuecollection of amounts determined to qualify as charity care these amounts are not reported as net patientservice revenue

Income Taxes

As an essential government function of the County the Medical Center is generally exempt from federal andstate income taxes under Section 115 of the Internal Revenue Code and a similar provision of state lawHowever the Medical Center is subject to federal income tax on any unrelated business taxable incomeEstimated Professional Liabilitv Costs

The Medical Center has set aside certain assets for the payment of selfinsured professional liabilitylosses and related costs An annual estimated provision is accrued for the self insured portion ofprofessional liability claims and includes an estimate of the ultimate costs for both reported claims andclaims incurred but not reported

E



Compensated Absences

Medical Center policies permit most employees to accumulate vacation benefits that may be realized aspaid time off or in limited circumstances as a cash payment Expense and the related liability arerecognized as vacation benefits are earned Compensated absence liabilities are computed using theregular pay and termination pay rates in effect at the balance sheet date plus an additional amount forcompensation related payments such as social security and Medicare taxes computed using rates ineffect at that date

Patient Accounts Receivable

The Medical Center reports patient accounts receivable for services rendered at net realizable amountsfrom third party payers patients and others The Medical Center provides an allowance for doubtfulaccounts based upon a review of outstanding receivables historical collection information and existingeconomic conditions As a service to the patient the Medical Center bills third party payers directly andbills the patient when the patients liability is determined Patient accounts receivable are due in full whenbilled Accounts are considered delinquent and subsequently written off as bad debts based on individualcredit evaluation and specific circumstances of the account

Reclassifications

Certain reclassifications have been made to the 2008 financial statements to conform to the 2009financial statement presentation The reclassifications had no effect on the results of operations

C Net Patient Service Revenue

The Medical Center has agreements with third party payers that provide for payments to the MedicalCenter at amounts different from its established rates These payment arrangements include

Medicare

Inpatient acute care skilled nursing and substantially all outpatient services rendered to Medicareprogram beneficiaries are paid at prospectively determined rates These rates vary according to a patientclassification system that is based on clinical diagnostic acuity and other factors The Medical Center isreimbursed for certain services at tentative rates with final settlement determined after submission ofannual cost reports by the Medical Center and audits thereof bythe Medicare fiscal intermediary TheMedicare fiscal intermediary has audited the Medical Centers cost reports through June 30 2006Medicaid

Inpatient services are paid under a prospective payment system Outpatient services rendered to Medicaidprogram beneficiaries are primarily paid based on a cost reimbursement methodology The Medical Centeris reimbursed for certain services at a tentative rate with final settlement determined after submission ofannual cost reports by the Medical Center and audits thereof by the Medicaid fiscal intermediaryApproximately 48 of net patient service revenues are from participation in the Medicare and statesponsored Medicaid programs for the year ended June 30 2009 Laws and regulations governing theMedicare and Medicaid programs are complex and subject to interpretation and change As a result it isreasonably possible that recorded estimates will change materially in the near term

61rl


C Net Patient Service Revenue Continued

The Medical Center has also entered into payment agreements with certain commercial insurancecarriers health maintenance organizations and preferred provider organizations The basis for paymentto the Medical Center under these agreements includes prospectively determined rates per dischargediscounts from established charges and prospectively determined daily rates

In 2009 net patient service revenue includes approximately8412809 of funds received through theMedicaid Upper Payment Limit program

D Accounts Receivable

The Medical Center grants credit without collateral to its patients many of whom are area residents andare insured under thirdparty payer agreements Patient accounts receivable at June 30 2009 consistedof these amounts

Patients and their insurance carriers 30416821Medicare 3307926Medicaid 984906

34709653Less allowance for uncollectible amounts 19900000

Total 14809653

E Capital Assets

Capital asset activity for the year ended June 30 2009 was as follows

Land and land improvementsBuildings improvements andfixed equipment

Major moveable equipmentConstruction in progress

Less accumulated depreciationLand and land improvementsBuildings improvements and

fixed equipmentMajor moveable equipment

Capital assets net

Balance BalanceJune 30 2008 Additions Transfers Disposals June 30 2009

7678305 1485292 1286368 10449965

98854351 567264 11298941 11072055695266906 1551921 8907708 10572653510590196 15667895 21493017 4765074212389758 19272372 231662130

1644518 147448 1791966

45305043 3288093 4859313676550951 6283456 82834407123500512 9718997 133219509

88889246 9553375 98442621

Depreciation and amortization expense includes 80990 of amortization charges related to bond issuecosts

62


F Deposits Investments and Investment Income

Deposits

Custodial credit risk is the risk that in the event of a bank failure a governmentsdeposits may not bereturned to it The Medical Centers deposit policy for custodial credit risk requires compliance with theprovisions of state law

State law requires collateral ization of all deposits with federal depository insurance bonds and otherobligations of the US Treasury US agencies or instrumentalities of the State of Texas bonds of anycity county school district or special road district of the State of Texas bonds of any state or a suretybond having an aggregate value at least equal to the amount of the deposits

At June 30 2009 the Medical Centers bank balance of 34346523was not exposed to custodial creditrisk as shown below

Uninsured and uncollateralized

Uninsured and collateral held by pledging financialinstitutionstrust department or agent in otherthan the Medical Centersname 34346523

Total

Investments

34346523

The Medical Centersinternally designated investments are made by the Victoria County Treasurer andeither held by the County or bank trust departments in the Countysname In accordance with the

Medical Centersinvestment policy these investments are in either money market mutual funds orgovernment obligations

At June 30 2009 the Medical Center had the following investments and maturities

Maturities in Years

Type Fair Value Less Than 1 1 5 6 10

Money market mutual funds 2757330 2757330

63


F Deposits Investments and Investment Income Continued

Interest Rate Risk As a means of limiting its exposure to fair value losses arising from rising interestrates the Medical Centersinvestment policy limits its investment portfolio to maturities of four yearsor less The money market mutual funds are presented as an investment with a maturity of less thanone year because they are redeemable in full immediately

Credit Risk Credit risk is the risk that the issuer or other counterparty to an investment will not fulfillits obligations At June 30 2009 the Medical Centers investments that were not directly guaranteedby the US government were rated as follows

Investment

US agencies obligationsMoney market mutual funds

Moodys SP Fitch

Aaa AAA AAA

Aaa AAA Not rated

Concentration of Credit Risk The Medical Center places no limit on the amount that may be investedin US agencies obligations At June 30 2009 the Medical Center had no individual investmentsthat exceeded 5 of the total fair value of all investments

Summary of Carrying Values

The carrying values of deposits and investments shown previously are included in the balance sheets asfollows

Carrying valueDepositsInvestments

Included in the following balance sheet captionsCash and cash equivalentsRestricted cash and cash equivalents currentRestricted cash and cash equivalents noncurrent

Investment Income

Investment income consists of the following

Interest and dividends

64

903322672757330

93089597

90332267

7143302043000

93089597

1666591

1666591


G Longterm Obligations

The following is a summary of longterm obligation transactions for the Medical Center for the year endedJune 30 2009

Long term debtSeries 1994 Bonds ASeries 1999 Bonds B

Total longterm debt

Balance

June 30 2008 Additions Deductions

16465000 1646500015515000 107000031980000 17535000

Balance Current

June 30 2009 Portion

14445000

14445000

1125000

1125000

A Due January 1 2016 principal payable annually on January 1 interest payable semiannually atinterest rates varying between 400 to 625 secured by the Medical Centersnet revenues andtrustee held assets Paid in full in 2009

B Due February 15 2019 principal and interest payable semiannually at interest rates varyingbetween430and 625 secured by the Medical Centersnet revenues and trustee held assets

Under the terms of the Revenue Bond Indentures the Medical Center is required to maintain certainfunds with a trustee Accordingly these funds are included as assets held by trustee for debt service inthe balance sheets The Revenue Bond Indentures also place limits on the incurrence of additionalborrowings and require that the Medical Center satisfy certain measures of financial performance as longas the bonds are outstanding

The debt service requirements as of June 30 2009 are as follows

Year EndingJune 30 Principal Interest Total

2010 1125000 789595 19145952011 1185000 728845 19138452012 1250000 664855 19148552013 1320000 597355 19173552014 1 390000 526075 1916075

20152019 8175000 1397000 9572000

14445000 4703725 19148725

H Derivative Instruments

As a strategy to maintain acceptable levels of exposure to the risk of changes in future cash flows due tointerest rate fluctuations and to lower its borrowing costs when compared against fixed rate debt at thetime of issuance the Medical Center entered into six separate total return swap agreements and onefixed pay interest rate swap agreement related to its Series 1994 revenue bonds The total return swapagreements effectively changed 100 of the Series 1994 revenue bonds to a variable interest rateobligation The fixed pay swap agreement effectively converted 10000000 or approximately 50 ofthe Series 1994 debt back to a fixed rate of 305 which is lower than the original effective fixedinterest rate of the 1994 bonds

65


H Derivative Instruments Continued

These swaps were terminated when the 1994 debt was repaid during 2009 The total cost to terminatethe swaps was 581500 which is included as a component of the loss on extinguishment of debt in thestatement of revenues expenses and changes in net assets

I Self insured Claims

The Medical Center partially self insures the cost for its general and professional liability employee healthcare benefits and workers compensation The Texas Tort Claims Act limits the Medical Centers generaland professional liability to 100000 per claim and 300000 per occurrence with no annual aggregateThe Medical Center purchases annual stoploss insurance coverage for all employee health care benefitsand workers compensation claims Stop loss coverage began at 300000 for workers compensationclaims in 2009 Stop loss coverage for employee health claims began at 450000during 2009

Losses from asserted and unasserted claims identified under the Medical Centers incident reportingsystem are accrued based on estimates that incorporate the Medical Centers past experience as well asother considerations including the nature of each claim or incident and relevant trend factorsManagement believes that the funds designated by the Medical Center related to self insured general andprofessional liability and the accrued liabilities for all self insured claims are sufficient to cover any lossesit may incur It is reasonably possible that the Medical Centersestimate of losses will change by amaterial amount in the near term

Activity in the Medical Centers selfinsured claims liability accounts during 2009 and 2008 aresummarized as follows

2009

EmployeeHealth Care

Benefits

Balance beginning of yearCurrent year claims incurredand changes in estimates forclaims incurred in prior years

Claim and expenses paid net

Balance end of year

Balance beginning of yearCurrent year claims incurredand changes in estimates forclaims incurred in prior years

Claim and expenses paid net

Balance end of year

1300000

6549154

6893353

955801

EmployeeHealth Care

Benefits

Workers

Compensation

815343

253208214374

776509

2008

Workers

Compensation

General and

Professional

Liability

1000000

500000

500000

General and

ProfessionalLiability

1084334 659260 1000000

6516 749

6301083

1300000

403491247408

815343

147564147564

1000000

a


J Charity Care

In support of itsmission the Medical Center voluntarily provides free care to patients who lack financialresources and are deemed to be medically indigent Because the Medical Center does not pursuecollection of amounts determined to qualify as charity care they are not reported in net patient servicerevenue In addition the Medical Center provides services to other medically indigent patients undercertain government reimbursed public aid programs Such programs pay providers amounts which areless than established charges for the services provided to the recipients and many times the paymentsare less than the cost of rendering the services provided

In addition to uncompensated charges the Medical Center also commits significant time and resources toendeavors and critical services which meet otherwise unfilled community needs Many of these activitiesare sponsored with the knowledge that they will not be selfsupporting or financially viable Such

programs include health screening and assessments prenatal education and care communityeducational services and various support groups

K Related Party Transactions

The County maintains custody of the Medical Centersoperating cash accounts and is responsible forobtaining appropriate collateralization of such accounts The County issues debt on behalf of the MedicalCenter and invests the unadvanced proceeds The investment income attributable to deposits of the1994 and 1999 bond funds net of amounts capitalized are included in general revenue

L Pension Plan

The Medical Center sponsors The Texas Hospital Association Retirement Plan for Citizens MedicalCenter the Plan an agent multi employer defined benefit pension plan that covers eligible employeesThe Plan is administered by HealthShareTHA a wholly owned subsidiary of the Texas HospitalAssociation The Plans assets are invested as a portion of the total HealthShareTHA investment trustfund Amendments to the Plan are made only with the authority of the Board of the Medical Center ThePlan does not issue a standalone financial report However an annual actuarial valuation report isavailable from the Medical Center or HealthShareTHA That report may be obtained by writingHealthShareTHA at PO Box 15587 Austin Texas 78761 5587

During 2008 the Medical Center adopted the GASB 50 Pension Disclosuresan Amendment of GASBStatements 25 and 27 GASB 50 which revised the pension plan disclosure requirements in the financialstatements GASB 50 enhances information disclosed in the notes to the financial statements andrequires certain additional supplementary information related to the Medical Centers pension planAmong other items GASB 50 requires the Medical Center to disclose the funded status of its pensionplan because the aggregate actuarial cost method is used to determine the annual required contributionsof the Medical Center ARC GASB 50 also requires the Medical Center to include a schedule of fundingprogress as supplementary information The adoption of GASB 50 had no impact on the MedicalCentersfinancial position or change in net assets

All Medical Center employees who work 20 or more hours per week for at least five months during a yearare eligible for the Plan There is no minimum age requirement for Plan participation

The Plan provides retirement death and disability benefits Additionally the Plan provides fully vestedbenefits to terminated employees who have at least five years of vesting service Employees may retirewith reduced benefits at age 60 with five years of vesting service The monthly benefit at normalretirement age 65 plus five years of Plan participation payable in a lifetime annuity ranges from 175to 325 times years of service times average monthly compensation subject to certain benefit limits

67


L Pension Plan Continued

Funding Policy

The Board has the sole authority to establish or amend the obligations to contribute to the Plan byparticipants or the employer

Plan participants are required to contribute at rates ranging from 40 to 55 in 2009 of their prior Planyear compensation The Medical Center makes contributions at an actuarially determined amount whichequaled 66 of participantcovered compensation for 2009 and is expected to be 71 of participantcovered compensation for 2010 The costs of administering the Plan are paid by the Plan and areconsidered in the determination of the employer contribution rate

Annual Pension Cost

For the fiscal year ended June 30 2009 the Medical Centers Annual Pension Cost APC was2553957 which was equal to the Medical Centers annual contributions

The required contributions for 2009 were determined based on the results of actuarial valuations as ofMarch 1 2009 using the aggregate actuarial cost method The actuarial assumptions included a a775 investment rate of return net of administrative expenses and b projected salary increasesranging from 50 to 90 per year Both a and b included an inflation component of 40 The

assumptions for 2007 actuarial valuation did not include any postretirement benefit increases For the2009 actuarial valuation the assumptions included 2 per year postretirement benefit increases for retireeswhose benefit commences on or after March 1 2007 The actuarial valuation of Plan assets wasdetermined using a fiveyear adjusted market value method for both valuations

Trend Information

Year Ended

Annual Pension

Cost APCPercentage of APC

ContributedNet Pension

Obligation Asset2009

2008

2007

2553957 114

2164351 120

1828350 130

17890151422972987323

There was no separately determined unfunded actuarial accrued liability and no amortization period at theMarch 1 2009 valuation date due to the actuarial cost method being used

Funding Status and Funding Progress

As of March 1 2009 the most recent actuarial valuation date the plan was 664funded The actuarialaccrued liability for benefits was42789777 and the actuarial value of assets was28417623 resultingin an unfunded actuarial accrued liability UAAL of 14372154 The covered payroll annual payroll ofactive employees covered by the plan was38765686 and the ratio of the UAAL to the covered payrollwas 371

The schedule of funding progress presented as supplementary information following the notes tofinancial statements in the Medical Centers financial statements presents multi year trend informationabout whether the actuarial value of plan assets is increasing or decreasing over time relative to theactuarial accrued liability benefits


M Designated Net Assets

At June 30 2009 and 2008 unrestricted net assets have been designated by the Medical Centers Boardof Directors for the following purposes

2009 2008

Capital acquisitions 10624364 10631486Selfinsured professional liability 924814 916062Self insured health care 59132 197554

Designated net assets remain under the control of the Board of Directors which may at its discretion lateruse these net assets for other purposes

N Contingencies

In the normal course of business the Medical Center is from time to time subject to allegations that mayor do result in litigation Some of these allegations are in areas not covered by the Medical Centers selfinsurance program discussed elsewhere in these notes or by commercial insurance for exampleallegations regarding employment practices or performance of contracts The Medical Center evaluatessuch allegations by conducting investigations to determine the validity of each potential claim Basedupon the advice of legal counsel management records an estimate of the amount of ultimate expectedloss if any for each Events could occur that would cause the estimate of ultimate loss to differ materiallyin the near term

O Future Change in Accounting Principle

The GASB recently issued its Statement No 53 GASB 53 Accounting and Financial Reporting forDerivative Instruments The statement addresses the recognition measurement and disclosure ofinformation regarding derivative instruments entered into by the state and local governments The

Medical Center expects to first apply GASB 53 during the year ending June 30 2010 A key provision inthis statement is that derivative instruments are reported at fair value The changes in fair value ofderivative instruments that are used for investment purposes or that are reported as investment derivativeinstruments because of ineffectiveness are reported within the investment revenue classificationAlternatively the changes in fair value of derivative instruments that are classified as hedging derivativeinstruments are reported in the statement of net assets as deferrals

P Significant Estimates and Concentrations

Current Economic Conditions

The current economic environment presents hospitals with unprecedented circumstances and challengeswhich in some cases have resulted in large declines in the fair value of investments and other assetslarge declines in contributions constraints on liquidity and difficulty obtaining financing The financial

statements have been prepared using values and information currently available to the Medical Center

Current economic conditions including the rising unemployment rate have made it difficult for certain ofour patients to pay for services rendered As employers make adjustments to health insurance plans ormore patients become unemployed services provided to selfpay and other payers may significantlyimpact net patient service revenue which could have an adverse impact on the Medical Centersfutureoperating results Further the effect of economic conditions on the state may have an adverse effect oncash flows related to the Medicaid program


P Significant Estimates and Concentrations Continued

Given the volatility of current economic conditions the values of assets and liabilities recorded in thefinancial statements could change rapidly resulting in material future adjustments in investment valuesincluding defined benefit pension plan investments and allowances for accounts receivable that couldnegatively impact the Medical Centersability to meet debt covenants or maintain sufficient liquidity

70

Required Supplementary Information

COUNTY OF VICTORIA TEXASMAJOR GOVERNMENTAL FUND GENERAL FUND

SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL STATUTORY BASIS


REVENUES

Taxes

Fees of office and user fees

IntergovernmentalFines and forfeitures

Investment income

Interest

Licenses and permitsMiscellaneous

Total revenues

EXPENDITURES

Current

General governmentPublic safetyCulture and recreationPublic health

Capital outlay

Total expenditures

Excess deficiency of revenues overexpenditures



Transfers out


Change in fund balance

600000 600000 13600938100 38100 53981770462 807935 868569

32366123 32471298 29835202

13600915 53966

70109 798460

538312 29296890

16218628 16540340

Actual Budget Actual

14262572 14825267

Amounts to Statutory Amounts

Original Final Budgetary Differences StatutoryBudget Budget Basis Over Under Basis

22770918 22770918 22126200 297888 218283121956650 1956650 1808419 12601 17958184364893 4432595 3538134 182803 33553311865100 1865100 1303890 25104 1328994

600000 600000 13600938100 38100 53981770462 807935 868569

32366123 32471298 29835202

13600915 53966

70109 798460

538312 29296890

16218628 16540340 15764441 63233 1570120814262572 14825267 14352114 28007 14380121

412792 416792 389670 3887 38578318688 18698 15658 38 15696

175964 175844 175844

30912680 31977061 30697727 39075 30658652

1453443 494237 862525 499237 1361762

20000 20000 20988 2474 23462282872 282872 282872

941513 962826 178812 9119 1879312414956 3691310 3476509 153 3476662

1453443 2425612 2993837 11440 2982397

1931375 3856362 487797 4344159

Fund balance January 1 6956395 6956395 6956395 1412427 8368822

Fund balance December 31 6956395 5025020 3100033 924630 4024663

Explanation of differencesThe County budgets on the cash basis of accounting Therefore under the budgetarybasis revenues are recognized as collected and expenditures when paid

The accompanying notes to required supplementary information are an integral part of this schedule71

COUNTY OF VICTORIA TEXASNOTES TO REQUIRED SUPPLEMENTARY INFORMATIONDecember 31 2009

NOTE 1 BUDGETARY BASIS OF ACCOUNTING

The County annually adopts budgets that are prepared using the cash basis of accounting which is notconsistent with generally accepted accounting principles GAAP A reconciliation to the statutory basis isprovided in the preceding statement Refer to Note 1 of the notes to the financial statements for explanationof the statutory basis of accounting used to prepare the financial statements

72

r

iI

Combining and Individual Fund Statements and Schedules

COUNTY OF VICTORIA TEXASALL NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET STATUTORY BASIS

December 31 2009

Total Total Total

Nonmajor Nonmajor NonmajorSpecial Debt Governmental

Revenue Funds Service Fund Funds

ASSETS

Current assets

Cash and cash equivalents 3335287 610451 3945738

Receivables net 1940739 848365 2789104Due from other governments 1293101 1293101Due from other funds 160462 160462

Total assets 6729589 1458816 8188405


Liabilities

Accounts payable 149794 149794Accrued expenditures 224302 224302Due to other funds 977436 977436Deferred revenue 2691574 1185858 3877432

Total liabilities 4043106 1185858 5228964

Fund balances

Unreserved undesignated reported inSpecial revenue funds 2686483 2686483Debt service fund 272958 272958

Total fund balances 2686483 272958 2959441

Total liabilities and fund balances 6729589 1458816 8188405

73

COUNTY OF VICTORIA TEXASALL NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCESSTATUTORY BASIS


REVENUES

Taxes



Investment income

Contributions

Miscellaneous

Total revenues

EXPENDITURES

Current


Public health

Debt service


Total expenditures



Transfers in

Transfers out





Total Total Total

Nonmajor Nonmajor NonmajorSpecial Debt Governmental

Revenue Funds Service Fund Funds

2618328 1714929 43332571182837 11828375599385 559938586138 8613827751 2914 306655350 535078051 78051

9597840 1717843 11315683

1928050 1928050926845 9268454228163 42281633775 37754274036 4274036

11360869

1405000244250

1649250

140500024425013010119

1763029 68593 1694436

98654 986542249629 2249629570512 5705121777771 1 777771

14742

2671741

2686483

68593

204365

272958

83335

2876106

2959441

74

NONMAJOR SPECIAL REVENUE FUNDS

Special Revenue Funds are used to account for the proceeds of specific revenue sources other thanspecial assessments private purpose trusts or major capital projects that are legally restricted toexpenditures for specific purposes The CountysSpecial Revenue Funds consists of Road and Bridgeand other funds

ROAD AND BRIDGE FUNDS

The Road and Bridge Funds are constitutional funds established to account for current funds used forthe purpose of constructing and maintaining roads and bridges The principal sources of revenues forthese funds are ad valorem taxes and intergovernmental revenues

The County is divided into four precincts each of which is administered by one of the four CountyCommissioners Each precinct has a separate budget for construction and maintenance of roads andbridges in the precinct The Road and Bridge Funds consists of the following

Road and Bridge Precinct Funds Account for costs associated with the construction and

maintenance of roads and bridges in the four Commissioners precincts Revenues are derivedprimarily from ad valorem taxes vehicle registration fees and interest earnings

OTHER SPECIAL REVENUE FUNDS

The Other Special Revenue Funds consists of various funds that account for particular functions andactivities as described below

Emergency Management Fund Accounts for the funds received from the City of Victoria andthe State of Texas for Emergency Management operations

Records Management Fund Accounts for monies received by the County under LocalGovernment Code Section 118011 Expenditures of the fund are made to manage and preservedocuments filed in the office of the County Clerk Revenues come from filing charges assessedby the County Clerk

Courthouse Security Fund Accounts for funds received from various sources designated to beused to enhance security in the County Courthouse

Justice Court Building Security Fund Accounts for funds received that are designated to beused to enhance security in buildings that house justice court other than the County Courthouse

District Clerk Records Management Fund Accounts for monies received by the County fromfiling charges assessed by the District Clerk under Local Government Code Section 51317Expenditures of the fund are made to manage and preserve documents filed in the office of theDistrict Clerk

Appellate Judicial System Fund Accounts for fees received by the County for court costs oncivil suits filed with the County Court County Court at Law Probate Court or District Court underSection 22214 and 222141 of the Texas Government Code The purpose of the fee is toreimburse Nueces County for this Countys share of supplemental salaries automobileallowances and fringe benefits for the Justices of the 13 Court of Appeals

75

NONMAJOR SPECIAL REVENUE FUNDS Continued

OTHER SPECIAL REVENUE FUNDS Continued

Gulf of Mexico Energy Security Act Fund Accounts for funds received from the US

Department of Interior for rentals royalties bonus and other sums derived from certain OuterContinental Shelf leases in the Gulf of Mexico These revenues are reserved for projects andactivities for the purposes of coastal protection including conservation coastal restorationhurricane protection and infrastructure directly affected by coastal wetland losses

FEMA Hazard Mitigation 3294EM TX Fund Accounts for funds received from the Federal

Emergency Management Agency for the major disaster declaration FEMA 3294EMTX foremergency protective measures for Hurricane Ike

FEMA Hazard Mitigation Various DR TX Fund Accounts for funds received from Federal

Emergency Management Agency and Office of Rural and Community Affairs for the disasterdeclaration FEMA 1620 1624 and 1791 DR TX for the acquisition of three parcels of land andcreation of a detention pond

FEMA Hazard Mitigation 1709 DR TX Fund Accounts for funds received from Federal

Emergency Management Agency and Office of Rural and Community Affairs for the disasterdeclaration FEMA 1709 DR TX to repair damages and reimburse costs associated with flooding

Juvenile Probation Fund Records monies received by the County from the Texas JuvenileProbation Commission as well as transfers from the General Fund of the County These moniesare spent to provide various services related to the operation of the County Juvenile ProbationDepartment

Drug Courts Program Fund Accounts for the revenuesexpenditures related to operations ofthe state mandated programs for monitoring and rehabilitating violators of state drug laws

Federal Foster Care Grant Fund Accounts for the funds received from the Administration for

Children and Families under the Department of Health and Human Services The purpose of thegrant is to provide funds for administrative and training costs and equipment needs as it relatesto juvenile probation activities

Juvenile Delinquency Prevention Fund Accounts for funds received as a cost of court fee foroffenses committed under Section 2808 Penal Code These funds are administered by or underthe direction of Commissioners Court and are used to repair damage provide educational andintervention programs and provide public rewards

Justice Technology Fund Accounts for funds received from a defendant convicted of amisdemeanor offense in a Justice Court pursuant to Article 1020173 Code of CriminalProcedures These funds are administered by or under the direction of the Commissioners Courtand are used to finance the technological enhancements of the Justice Courts

Family Protection Fee Fund Accounts for funds received from individuals filing suit fordissolution of a marriage These funds are administered by or under the direction of theCommissioners Court and are to be distributed to non profit organizations in Victoria County

Community Action Committee Training Fund Accounts for funds received from CommunityAction Committee to provide training opportunities for unemployed or underemployed CommunityServices Block Grant eligible citizens of Victoria County

CDA Processing Fee Fund Accounts for fees earned by the office of the Criminal DistrictAttorney from the collection of hot checks returned to County merchants Expenditures of thefund include normal operating costs of the District AttorneysOffice

Fll



CDA Victims Assistance Grant Fund Accounts for the funds received from the US

Department of Justice and administered by the Office for Victims of Crime The purpose of thegrant is to stimulate State participation and support for victim service programs and promotevictim cooperation with law enforcement in addition to the direct benefit to crime victims withFederal assistance monies

Sheriff Victims Assistance Grant Fund Accounts for the funds received from the Office of the

Attorney General to provide funding for a fulltime Crime Victim Liaison to work in the SheriffsDepartment and the Victoria Police Department

Texas Vine Grant Fund Accounts for funds received from the Office of the Attorney GeneralThe purpose of the VINE Victim Information and Notification Everyday grant is to provide basicinformation on jailed suspects offenders and their scheduled court events to crime victims andother concerned citizens

4H Activity Center Fund Appropriation from Victoria County to help fund the shooting sportsbuilding for the Victoria County 4H Department of the Texas Agricultural Extension Service

Operation Border Star Fund Accounts for funds received from the Texas Department of PublicSafety to organize and deploy local government law enforcement personnel and equipment toparticipate in a project to enhance border security along the Texas Mexico border bysupplementing the border security efforts of federal agencies

TXDOT Click It or Ticket Grant Fund Accounts for funds received from the Texas Departmentof Transportation to increase occupant restraint use in all passenger vehicles and trucks byconducting an intense occupant protection enforcement and public information and educationeffort during the Memorial Day holiday period

Project Safe Neighborhood Fund Accounts for funds received from Sam Houston State

University through the Office of Justice Programs providing the Victoria County Sheriffs Officeand the City of Victoria Police Department with software that will allow officers to identify gangmembers The County is reimbursed for overtime hours worked by the deputy sheriff officers tomanage data and perform fieldwork to identify gang members

SCAAP Award Fund Accounts for funds received from the Bureau of Justice Assistance to

assist localities with the costs for incarcerating undocumented criminal aliens who have at leastone felony or two misdemeanor convictions for violations of state or local law and who areincarcerated for at least 4 consecutive days

Byrne Justice Assistance Grant Fund Accounts for funds received from the City of Victoria forthe purchase of equipment for the Victoria County SheriffsOffice

GCRPC Solid Waste Fund Accounts for funds received from Golden Crescent RegionalPlanning Commission to provide Victoria County residents with enhanced opportunities toproperly dispose of household waste by purchasing new compacting waste containers to beplaced at Victoria County courtesy stations in precincts 3 and 4

2008 Homeland Security Grant Program Fund Accounts for 2008 grant funds received fromthe GovernorsDivision of Emergency Management to provide law enforcement and emergencyresponse communities with enhanced capabilities for detecting deterring disrupting preventingand responding to potential threats of manmade natural disasters and acts of terrorism

77



2007 Homeland Security Grant Program Fund Accounts for 2007 grant funds received fromthe GovernorsDivision of Emergency Management to provide law enforcement and emergencyresponse communities with enhanced capabilities for detecting deterring disrupting preventingand responding to potential threats of manmade natural disasters and acts of terrorism

TCDP WCID No 2 Placedo Grant Fund Accounts for funds received from the Office of Ruraland Community Affairs on behalf of the Victoria County Water Control and Improvement DistrictNo 2 Placedo Grant funds are to be used for capital improvements to the existing water system

Emergency Management Volunteer Program Fund Accounts for funds received from the

Southwest Texas Regional Advisory Council to employ a parttime volunteer program manager

BISD School Resource Officer Fund Accounts for funds received from BloomingtonIndependent School District BISD to employ a juvenile probation officer that is housed andworking on BISD campuses

SheriffsSpecial Purpose Fund Accounts for the use of drug related monies awarded to theSheriffsDepartment via court proceedings

SheriffsDonations Fund Accounts for funds received from various entities which have beendonated for specific purposes for the Victoria County Sheriff

Sheriffs DOJ Federal Forfeiture Fund Accounts for funds received from the US Departmentof Justice The purpose of this program is for law enforcement to deter crime by deprivingcriminals of the profits and proceeds of their illegal activities and to weaken criminal enterprisesby removing the instrumentalities of crime

CDA Contraband Forfeiture Fund Accounts for the use of drug related monies awarded to theCriminal District Attorney via court proceedings post October 17 1989

VISD Juvenile Probation Officer Fund Accounts for funds received from Victoria IndependentSchool District VISD to employ four juvenile probation officers that are housed and working onVISD campuses

Employee Benefit Fund Accounts for funds received from commissions from vendingmachines located on County property donations and interest earnings These funds are used toprovide special benefits for employees

Election AdministratorsSpecial Fund Records the various fees received designated to beused by the County Election Administrator in coordinating various County elections

Elections Chapter 19 Fund Accounts for funds received from the Secretary of State toincrease the number of registered voters in the state maintain and report an accurate list of thenumber of registered voters andor increase the efficiency of the voter registration office throughthe use of technological equipment

Tax Assessor Collector Special Fund Accounts for interest earnings on the Special InventoryEscrow Account These funds are the sole property of the collector and are used to defray thecost of administration of the prepayment procedure established by Texas Property Tax CodeSection 23122

Historical Commission Fund Accounts for monies received through various promotionalactivities These funds are expended for the purpose of preparing the historical heritage of theCounty of Victoria

78



Law Library Fund Accounts for expenditures related to the establishment and maintenance ofa professional library for members of the Texas Bar Association Revenues are derived from feesassessed on civil cases filed in County and District Courts

Health Department Fund Accounts for revenues and expenditures associated with servicesprovided to the public by the nursing division special services division and the environmentalservices division located at the Victoria CityCounty Heath Department

WIC Program Fund Accounts for funds received from the Texas Department of State HealthServices for Victoria Countysparticipation in the WIC Card Program These funds are used todetermine eligibility of applicants through assessment of their income residence and nutritionalstatus and provide nutrition education and counseling to eligible participants

Law Enforcement Officer Education LEOSE Fund Accounts for funds received from theState of Texas These funds are used for continuing education of persons licensed underGovernment Code Chapter 415 or to provide necessary training to fulltime law enforcementsupport personnel

79

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDSCOMBINING BALANCE SHEET STATUTORY BASISDecember 31 2009

Other

SpecialRevenue

705275

278711182260

997

1916403

116912145568957524

1220004

696399

1916403

Total

3335287

1912868278711293101160462

6729589

1497942243029774362691574

4043106

2686483

6729589

Road and

BridgeASSETS

Cash and cash equivalents 2630012Receivables net

Ad valorem 1912868Other

Due from other governments 110841Due from other funds 159465

Total assets 4813186

LIABILITIES AND FUND BALANCELiabilities

Accounts payable 32882Accrued expenditures 78734Due to other funds 19912Deferred revenue 2691574

Total liabilities 2823102

Fund balance

Unreserved undesignated 1990084

Total liabilities and fund balance 4813186

Other

SpecialRevenue

705275

278711182260

997

1916403

116912145568957524

1220004

696399

1916403

Total

3335287

1912868278711293101160462

6729589

1497942243029774362691574

4043106

2686483

6729589

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDSCOMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE

STATUTORY BASIS


REVENUES

Taxes


IntergovernmentalFines and forfeituresInvestment income

Interest

Contributions

Miscellaneous

Road and

Bridge

Other

SpecialRevenue Total

2618328

1656563

26183281182837559938586138

Total revenues

EXPENDITURES

Current


Public health

Total expenditures



Transfers in

Transfers out



Fund balance January 1 as restated

Fund balance December 31

21956

68601

4365448

4228163

4228163

1182837394282286138

579553509450

5232392

1928050926845

37754274036

7132 706

27751535078051

9597840

1928050926845422816337754274036

11360869

137285 1900314 1763029

98654207082150529

155207

292492

1697592

1990084

2042547419983

1622564

277750

974149

696399

986542249629570512

1777771

14742

2671741

2686483

81

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS

ROAD AND BRIDGE FUNDS


December 31 2009

Total assets

Road and Bridge Funds

1138454 1357806 987465

Pct1 Pct2 Pct3 Pct4 Total

ASSETS

Cash and cash equivalents 839445 599060 909442 282065 2630012Receivables net

Liabilities

Ad valorem 490016 457611 448364 516877 1912868Due from other governments 110841 110841Due from other funds 81783 77682 159465

Total assets 1329461 1138454 1357806 987465 4813186

LIABILITIES AND FUND

BALANCE

Liabilities

Accounts payable 9728 6753 5507 10894 32882Accrued expenditures 22393 14643 21523 20175 78734Due to other funds 5287 3738 5262 5625 19912Deferred revenue 688586 644501 631360 727127 2691574

Total liabilities 725994 669635 663652 763821 2823102

Fund balance

Unreserved undesignated 603467 468819 694154 223644 1990084

Total liabilities and fund balance 1329461 1138454 1357806 987465 4813186

82

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDSROAD AND BRIDGE FUNDS

COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCESTATUTORY BASIS


EXPENDITURES

Current

Highways and streets 1011782 950006 977148 1289227 4228163

Excess deficiency of revenuesover expenditures 73483 72953 60899 70050 137285

OTHER FINANCING SOURCES

USESSale of assets 20264 37153 5464 35773 98654Transfers in 3072 81783 44145 78082 207082Transfers out 20000 21824 21024 87681 150529

Total other financing sourcesuses 3336 97112 28585 26174 155207

Change in fund balance 76819 170065 89484 43876 292492

Fund balance January 1as restated 526648 298754 604670 267520 1697592


83

Road and Bridge FundsPct1 Pct2 Pct3 Pct4 Total

REVENUES

Taxes 673137 626578 613487 705126 2618328

Intergovernmental 399457 388694 384434 483978 1656563Investment income

Interest 6548 5015 6549 3844 21956Miscellaneous 6123 2672 33577 26229 68601

Total revenues 1085265 1022959 1038047 1219177 4365448

EXPENDITURES

Current

Highways and streets 1011782 950006 977148 1289227 4228163



USESSale of assets 20264 37153 5464 35773 98654Transfers in 3072 81783 44145 78082 207082Transfers out 20000 21824 21024 87681 150529

Total other financing sourcesuses 3336 97112 28585 26174 155207


Fund balance January 1as restated 526648 298754 604670 267520 1697592


83




December 31 2009 1

ASSETS

Cash and cash equivalentsReceivables net

Other

Due from other governmentsDue from other funds

Total assets


BALANCE

Liabilities

Accounts payableAccrued expendituresDue to other funds

Total liabilities

Fund balance

Unreserved undesignated

Total liabilities and fund

balance

10609 49

5577 2018155932 19

172118 2086

2329 55435 25942 30469 4522

174447 57521 25942 30469 4522

84

Justice District

Court Clerk AppellateEmergency Records Courthouse Building Records Judicial

Mgmt Mgmt Security Security Mgmt System

57284 25792 30434 4522

237 150 35

174447

174447 57521 25942 30469 4522

10609 49

5577 2018155932 19

172118 2086

2329 55435 25942 30469 4522

174447 57521 25942 30469 4522

84

Gulf of Mexico FEMA FEMA FEMA

Energy Hazard Hazard Hazard Drug Federal Juvenile

Security Mitigation Mitigation Mitigation Juvenile Courts Foster Care DelinquencyAct 3294 EM TX Various DR TX 1709 DR TX Probation Program Grant Prevention

17854 144575 15083 116

1925199972 407442 25023

200

17854 200172 407442 169598 17008 116

6471 300

30817200172 407442 269

200172 407442 37557 300

17854 132041 16708 116

17854 200172 407442 169598 17008 116

continued

85 1




December 31 2009

Receivables netOther 132


Total assets 22208 22114


BALANCE

Liabilities

8584 769510510 1745

10510 59196 8584 7695

Accounts payable

Community CDA Sheriff

Family Action CDA Victims Victims

Justice Protection Committee Processing Assistance Assistance

Technology Fee Training Fee Grant Grant

ASSETS

9851 8584 8196

Fund balance

Cash and cash equivalents 22076 22114 57451

Receivables netOther 132


Total assets 22208 22114


BALANCE

Liabilities

8584 769510510 1745

10510 59196 8584 7695

Accounts payable 660 5684 39 28

Accrued expenditures 622 4134 1865 1253Due to other funds 9888 33 6680 6915

Total liabilities 660 10510 9851 8584 8196

Fund balance

Unreserved undesignated 21548 22114 49345 501


balance 22208 22114 10510 59196 8584 7695

4H Operation TXDOT Project Byrne GCRPCTexas Vine Activity Border Click It Safe SCAAP JAG Solid

Grant Center Star Ticket Neighborhood Award Program Waste

27165 50837

3104 4089

27165 3104 4089 50837

10

3104 4089

10 3104 4089

27155

27165 3104

50837

4089 50837

continued

87




December 31 2009

Emergency BISD2008 2007 Management School Sheriffs

Homeland Homeland TCDP Volunteer Resource SpecialSecurity Security Grant Program Officer Purpose

ASSETS

Cash and cash equivalents 37307Receivables net

Other

Due from other governments 3296 1354 5821Due from other funds

Total assets 3296 1354 5821 37307


BALANCE

Liabilities

Accounts payable 12 37

Accrued expenditures 256 1607 76

Due to other funds 3296 1086 4177

Totalliabilities 3296 1354 5821 76

Fund balance

Unreserved undesignated 37231


balance 3296 1354 5821 37307

I

744 158 59 1078

VISD

498

Sheriffs CDA Juvenile

Sheriffs DOJ Federal Contraband Probation

Donations Forfeiture Forfeiture Officer

6110 1933 67784

6110 1933 69026

10156

6110 1933 69026 10156

744 158 59 1078

Tax

498

Election Assessor

Employee Admin Elections Collector

Benefit Special Chapter 19 Special

6110 1933 67784 3213 16439 52514

3272 18335 52514

1584797

3272 18335 2381 52514

744 158 59 1078 152

498 2879 615

7119 818 1614

1242 10156 59 1896 2381

6110 1933 67784 3213 16439 52514

6110 1933 69026 10156 3272 18335 2381 52514

continued

0




December 31 2009

Historical Law Health WIC

Commission Library Department Program LEOSE Total

ASSETS

Cash and cash equivalents 15032 7870 350 18223 705275

Receivables netOther 9113 27871

Due from other governments 184666 149051 1182260Due from other funds 997

Total assets 15032 7870 194129 149051 18223 1916403


BALANCE

Liabilities

Accounts payable 3672 82126 5024 116912Accrued expenditures 73297 20054 145568Due to other funds 33484 111387 957524

Total liabilities 3672 188907 136465 1220004

Fund balance

Unreserved undesignated 15032 4198 5222 12586 18223 696399


balance 15032 7870 194129 149051 18223 1916403

concluded

106I17

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDSOTHER SPECIAL REVENUE FUNDS



91

Justice District

Court Clerk AppellateEmergency Records Courthouse Building Records Judicial

Mgmt Mgmt Security Security Mgmt SystemREVENUES

Fees of office and user fees 83009 50479 7651 6111Intergovernmental 137142Fines and forfeitures

Investment income

Interest 486 222 171 44

Contributions

Miscellaneous

Total revenues 137142 83495 50701 7822 6155

EXPENDITURES

Current

General government 112861 7431 7246Public safety 271689Culture and recreationPublic health

Total expenditures 271689 112861 7431 7246



USESTransfers in 134547 154

Transfers out 47500

Total other financing sourcesuses 134547 47500 154


Fund balance January 1as restated 2329 84801 30172 22647 5613 C1 54


91

Gulf of Mexico FEMA FEMA FEMA

2406 200076

Energy Hazard Hazard Hazard Drug Federal Juvenile

Security Mitigation Mitigation Mitigation Juvenile Courts Foster Care DelinquencyAct 3294 EM TX Various DR TX 1709 DR TX Probation Program Grant Prevention

811117854 219915 161372 720498

872 79 439 1

2400

17854 219915 161372 723770 8190 439 1

21186 269629 820925 2406 200076

21186 269629 820925 2406 200076

17854 21186 49714 161372 97155 5784 199637 1

66657 91387 18000021314 43745 168583 91387

21314 22912 168583 91387 88613

17854 42500 26802 7211 5768 5784 111024 1

42500 26802 7211 137809 10924 111024 115

17854 132041 16708 116

continued

92

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDSOTHER SPECIAL REVENUE FUNDSCOMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCE

STATUTORY BASIS


REVENUES



Investment income

Interest

Contributions

Miscellaneous

Total revenues

EXPENDITURES

Current

General governmentPublic safetyCulture and recreation

Public health

Total expenditures



USESTransfers in

Transfers out

Total other financing sourcesuses


Fund balance January 1as restated


49173 10000 18872 144771 5348546867

49173 10000 18872 144771 53485 46867

17757 3955 32943 16657 25754

16657 1314316657

16657 16657 13143

17757 3955 49600 12611

39305 26069 98945 12110

21548 22114 49345 501

NXI

Community CDA Sheriff

Family Action CDA Victims Victims

Justice Protection Committee Processing Assistance Assistance

Technology Fee Training Fee Grant Grant

31237 6045 10757918872 36828 21113

179 583

3666

31416 6045 18872 111828 36828 21113

49173 10000 18872 144771 5348546867

49173 10000 18872 144771 53485 46867

17757 3955 32943 16657 25754

16657 1314316657

16657 16657 13143

17757 3955 49600 12611

39305 26069 98945 12110

21548 22114 49345 501

NXI

4H

Texas Vine ActivityGrant Center

21805

1

L

21805 4

21805

Operation TXDOT Project Byrne GCRPC

Border Click It Safe SCAAP JAG Solid

Star Ticket Neighborhood Award Program Waste

158249 4320 19585 23846 28000

149

23995 28000158249 4320 19585

158249 4320 19514 52761134

28000

21805 1134 158249 4320 19514 5276 28000

705 71 23995 5276

705

27860

27155

71 23995 5276

71 26842 5276

50837

continued

94

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDSOTHER SPECIAL REVENUE FUNDS



95

Emergency BISD

2008 2007 Management School Sheriffs

Homeland Homeland TCDP Volunteer Resource SpecialSecurity Security Grant Program Officer Purpose

REVENUES


Intergovernmental 5444 166349 5416 16762 49470Fines and forfeitures 3739Investment income

Interest 233

Contributions

Miscellaneous

Total revenues 5444 166349 5416 16762 49470 3972

EXPENDITURES

Current

General governmentPublic safety 5444 166349 15467 49470 1719Culture and recreation

Public health

Total expenditures 5444 166349 15467 49470 1719

Excess deficiency of revenuesover expenditures 5416 1295 2253


USESTransfers in

Transfers out


Change in fund balance 5416 1295 2253

Fund balance January 1as restated 5416 1295 34978

Fund balance December 31 37231

95

63407 2336 37221 6097 3636020173 149448

20173 63407 149448 2336 37221 6097 36360

5105 1933 2585 36 3776 795 34192

1005

1005

6110 1933 2585

797

797

36 2979

797

797

2 34192

70369 3249 13460 2 86706

6110 1933 67784 3213 16439 52514

continued

VISD Tax

Sheriffs CDA Juvenile Election Assessor

Sheriffs DOJ Federal Contraband Probation Employee Admin Elections Collector

Donations Forfeiture Forfeiture Officer Benefit Special Chapter 19 Special

40919 5302149448

22106 60293

5 529 22 78 12685100

2278 900

5105 22106 60822 149448 2300 40997 5302 2168

63407 2336 37221 6097 3636020173 149448

20173 63407 149448 2336 37221 6097 36360

5105 1933 2585 36 3776 795 34192

1005

1005

6110 1933 2585

797

797

36 2979

797

797

2 34192

70369 3249 13460 2 86706

6110 1933 67784 3213 16439 52514

continued





Historical Law Health WIC

Commission Library Department Program LEOSE Total

REVENUES



Investment income

Interest

Contributions

Miscellaneous

Total revenues

EXPENDITURES

Current

General governmentPublic safetyCulture and recreationPublic health

Total expenditures



USESTransfers in

Transfers out



Fund balance January 1as restated


62631 773763 11828371103381 841897 15256 3942822

86138

104 152 57955350

206 9450

104 62783 1877350 841897 15256 5232392

42763 192805012860 926845

2641 37753404087 841949 4274036

2641 42763 3404087 841949 12860 7132706

2537 20020 1526737 52 2396 1900314

4600 1533600 204254730000 419983

4600 30000 1533600 1622564

2063 9980 6863 52 2396 277750

12969 14178 1641 12638 15827 974149

15032 4198 5222 12586 18223 696399

concluded

WN

GENERALFUND

The General Fund is a constitutional fund and is utilized to account for all County revenues andexpenditures except those which are required to be classed in other constitutional funds and such otherfunds that are presented separately to facilitate proper accountability

COUNTY OF VICTORIA TEXASGENERAL FUND

SCHEDULE OF REVENUES EXPENDITURES AND CHANGES INFUND BALANCE BUDGET NONGAAP BUDGETARY BASIS AND ACTUALFor the year ended December 31 2009

REVENUES

Taxes

Ad valorem

Current

DelinquentPenalty and interest

Sales and use

Total taxes


Sheriffs departmentPrisoner maintenance

County treasurerElection administrator

County clerkProbate personnel education feesGuardianship feeCounty courts at lawTax assessor collector

Criminal district attorneyDistrict clerk

Justices of the peaceDeferred adjudicationConstables

Total fees of office and user fees

IntergovernmentalPayment in lieu of taxesAlcohol beverage taxCounty courts at lawBingo gross receipts taxTobacco settlement

Indigent defense grantTitle IVE legal serviceJury fee reimbursementSB1704Juvenile detention contractsState juvenile detention fundsJail inmate bedspaceJail inmate contract medicalJail inmate contract otherJail inmate extradition

General inmate medical

Project lifesaverVest reimbursement

TSA security reimbursementTotal intergovernmental

Original Final

Budget Budget

14570918 14570918300000 300000150000 1500007750000 775000022770918 22770918

500000500050003000

525000180050004000

45000025000

300000350005000047850

1956650

500000500050003000

525000180050004000

450000250003000003500050000478501956650

100015000015000075000339893450005000040000130000010400020000005000600002000025000

100015000015000075000

339893450005000040000130000017170220000005000600002000025000

4364893 4432595

Actual Amounts

BudgetaryBasis

14660446352796196816691614222126200

491082815

49244156

375997147057504374

44820414891

327261295284445455513

1808419

53661486691481797450919524189492410225307412466502707431141967

2

496832689127173

896

775810819

3538134

Variance

Positive

Negative

895285279646816

833858644718

89184185

761156

149003330750

374

17961010927261547255467663

148231

4366

13311821

491144652444928978130745335099041

85803349981031768912173

896

775810819

894461

continued


SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN

FUND BALANCE BUDGET NONGAAP BUDGETARY BASIS AND ACTUALFor the year ended December 31 2009

continued

1

Actual Amounts Variance

Original Final Budgetary Positive

Budget Budget Basis NegativeREVENUES continuedFines and forfeitures

District court fines 500000 500000 254666 245334County court at law fines 500000 500000 345429 154571Justice of the peace fines 825000 825000 665794 159206Forfeitures 40100 40100 38001 2099

Total fines and forfeitures 1865100 1865100 1303890 561210

Interest 600000 600000 136009 463991

Licenses and permitsMarriage licenses 11000 11000 19078 8078Beer and whiskey licenses 27000 27000 34628 7628Miscellaneous 100 100 275 175

Total licenses and permits 38100 38100 53981 15881

Miscellaneous

Records management preservation 40000 40000 25920 14080Criminal justice planning commission 300 300 6 294Crime stopper fee 5 5 5LEOSEF collection 10 10 2 8Victims of crime collection 1500 1500 383 1117JCPTF commission 100 100 9 91Juvenile probation diversion collections 200 200 120 80Operators chauffeurs license collection 25 25 8 17General revenuemisdemeanor cost 25 25 1 24Comprehensive rehabilitation collection 25 25 2 23Criminal assessment collection 25 25 25Abused children fees 25 25 25Legal service for indigents fees 600 600 474 126Defensive driving course fee 20000 20000 13645 6355Visual record by electronic device 500 500 500Court reporter fees 30000 30000 27007 2993Arrest warrant fees 60000 60000 32967 27033Other fees 244750 244750 147901 96849Personal recognizant fees 7000 7000 3301 3699CJAD contract services 6000 6000 7291 1291Rents and royalties 36012 36012 41657 5645Telephone commissions 180000 180000 270241 90241Election machines rental 10000 10000 20694 10694Reimbursements 39660 51333 137078 85745Refunds 100 25900 36868 10968Restitutions 1000 1000 558 442Miscellaneous 92600 92600 102436 9836

Total miscellaneous 770462 807935 868569 60634Total revenues 32366123 32471298 29835202 2636096

continued

1

COUNTY OF VICTORIA TEXASGENERALFUND


EXPENDITURES

Current

General governmentCounty judge

Salaries

Fringe benefitsOperating expenditures

Total county judgeCommissioners court

Salaries

Fringe benefitsOperating expendituresOther services and charges

Total commissioners court

Records managementSalaries


Total records management

County clerkSalaries

Fringe benefitsOperating expendituresOther services and chargesCapital outlay

Total county clerkVeterans service officer

Salaries


Total veterans service officer

Heritage directorSalaries

Fringe benefitsOperating expendituresCapital outlay

Total heritage director

Non departmentalOperating expendituresOther services and chargesCapital outlay

Total non departmental

Original Final

Budget Budget

172247 17224740470 404708182 8182

220899 220899

38795 38606

44737 4473712419 1241916700 1670023500 3600

97356 77456

673669

88066 8806622076 220762000 2000

112142 112142

Actual Amounts

BudgetaryBasis

169805398405822

215467

447361233511154154869773

85589200831580

107252

Variance

Positive

Negative

2442630

2360r d 19

1

84

55462052

7683

24771993

420

4890

488634 488823 461902 26921145640 145640 136710 893038795 38606 27561 11045

600 600 600

5985 5985673669 679654 632158 47496

44982 44982 44981 1

8665 8665 8643 22

4900 4900 3798 1102

58547 58547 57422 1125

38312 3831211916 119167700 6500

1200

57928 57928

3816611402

765

116251495

146

514

573538

6433

1603173 1157332943745 1340995300000 79664

2846918 2577991

1091171125218757537

2400895

661618880822127

177 nak

continued

100



EXPENDITURES continuedCurrent continued

General government continuedCounty court at law 1

Salaries


Total county court at law 1

County court at law 2

Salaries


Total county court at law 2

District court

SalariesFringe benefitsOperating expendituresOther services and charges

Total district court

District clerkSalaries


Total district clerk

Justice of the peace 1Salaries


Total justice of the peace 1







Original Final

Budget Budget

Actual Amounts

BudgetaryBasis

Variance

Positive

Negative

192907 192907 192906 1

41691 41691 39494 21973705 3705 2103 160239000 60500 52831 7669

277303 298803 287334 11469

192742 192742 192741 1

45452 45452 43134 23183650 3650 2546 110438000 50900 46503 4397

279844 292744 284924 7820

294320 295386 284772 10614113695 113695 110267 342817215 23910 20301 3609

537100 641371 626438 14933962330 1074362 1041778 32584

522133 521943 515871 6072148301 153301 149962 333924087 24277 24163 114

2895 2895694521 702416 692891 9525

99501 99501 97702 179930541 30541 28655 18867040 7530 6918 612

13000 12510 12477 33

150082 150082 145752 4330

98561 98566 9856630360 30360 26446 39143925 4134 3866 26814200 13886 13752 134

147046 146946 142630 4316

209001 209201 209154 4759960 59960 59154 8065500 5500 3030 24702100 2100 546 1554

276561 276761 271884 4877

continued101




General government continuedJustice of the peace 4

Salaries



Criminal district attorneySalaries


Total criminal district attorneyElection administrator

Salaries


Total election administrator

County auditorSalaries


Total county auditor

County treasurerSalaries


Total county treasurerTax assessor collector

Salaries


Total tax assessorcollector

Administrative services

Salaries


Total administrative services

Original Final

Budget Budget

Actual Amounts

BudgetaryBasis

Variance

Positive

Negative

121043 121043 116 497832386 32386 27307 50796160 8160 7556 604

34400 34300 33767 533

193989 195889 184695 11194

1086325 1086325282691 28269110000 10000

1379016 1379016

156300 15630037928 3792856300 5766610300 8934

260828 260828

3282419050918385

437135

3282419050918385

437135

2150616112722950

299138

51729715800122100

697398

1986405359016100

268330

21506161127349503925

315063

51729715800122100

697398

1986405359016100

268330

1039445265022

100001314467

14708535728548497764

245426

3200948660311878

418575

21505460446333463924

312770

50042515076617845

669036

1916385237011398

255406

4688017669

64549

9215220028171170

Mwjrivj

814739066507

18560

7

681

16041

9 7qq

1687272354255

28362

700212204702

12924

continued

102




General government continuedInformation technology

Salaries

Fringe benefitsOperating expendituresOther services and chargesCapital outlayDebt service

Total information technology

Building maintenanceSalaries


Total building maintenance

Adult probation departmentOperating expendituresCapital outlay

Total adult probation department

Juvenile detention facilitySalaries


Total juvenile detention facilityJuvenile board

Salaries

Fringe benefitsOther services and charges

Total juvenile board

Total general government

Public safetyFire marshal

Salaries


Total fire marshal


Original Final Budgetary Positive

Budget Budget Basis Negative

306091 306091 299435 665686986 86986 83880 3106290960 238960 226816 12144178500 264794 188792 7600235000 56706 41468 15238

273909 273909 273909

1171446 1227446 1114300 113146

287805 311860 307177 468388745 97172 92609 4563866800 1106800 1087010 19790

1243350 1515832 1486796 29036

9040 9040 6486 255412437 12436 1

9040 21477 18922 2555

1813484 1813484 1761530 51954455659 455659 425235 30424450700 468674 446873 2180175730 121158 96166 24992

27981 26556 1425499518 499518 499517 1

3295091 3386474 3255877 130597

32171 32171 321716198 6198 5379 819

70352 70352 48966 21386108721 108721 86516 22205

16218 628 16 540 340 15 764 441 775899

98283265145195067500

L4414

2412956665785394602268624

462196

2305496199484237559058622

441307

10746466311574321

2

20889

continued103



Original Final

Budget BudgetEXPENDITURES continuedCurrent continued

Public safety continuedSheriff

Salaries


Total sheriff

Constable 1

Salaries


Total constable 1

Constable 2

Salaries


Total constable 2

Constable 3

Salaries


Total constable 3

Constable 4

Salaries


Total constable 4

Non departmentalOther services and charges

CityCounty interlocal agreementTotal non departmental

Total publicsafety


Budgetary Positive

Basis Negative

7995531 7705531 7568551 1369802158915 2158915 2027568 1313471973635 2175284 2001853 173431

3119 311933000 462453 461359 1094176000 166000 161455 4545

12337081 12671302 12223905 447397

22967 22967 229678960 6960 4424 25365800 8852 8202 650

6570 6509 61

37727 45349 42102 3247

33942 33942 3394211074 11074 10879 195

8800 10503 10436 67

53816 55519 55257 262

33412 33412 3341210229 10229 10177 52

8944 8944 8598 346

52585 52585 52187 398

23207 23207 232079007 9007 8766 241

5944 5944 5225 719

1200 1200

38158 39358 38398 960

1498958 1498958 14989581498958 1498958 1498958

14262572 14825267 14352114 473153

continued

104




Culture and recreation continuedParks and recreation

Salaries


Total parks and recreation

Extension serviceSalaries


Total extension service

Total culture and recreation

Public health

Emergency mgmt I Flood plainSalaries

Fringe benefits

Operating expendituresTotal flood plain management

Total public health

Capital outlay

Total expenditures

Original Final

Budget Budget

657562404318700

108499

208879429742084031600

304293

412792

745226718565

18688

18688

30912680

657562404318700

Ann Ann

208879429742036536075

308293

416792

746226718565

18698

18698

175964

31977061

Actual Amounts

BudgetaryBasis

598001873317567

96100

202540363521924435434

293570

389670

746021946004

15658

15658

175844

30697727

Excess deficiency of revenues over expenditures 1453443

OTHER FINANCING SOURCES USESSale of assets 20000Capital lease proceedsTransfers in 941513Transfers out 2414956

Total other financing sources uses 1453443


Fund balance January 1


494237 862525

Variance

Positive

Negative

59565310113312399

633966221121

GA4

14 L3

27122

2

477

2561n AAA

30401 nn

1279334

1356762

20000 20988 988282872 282872962826 178812 7840143691310 3476509 214801

2425612 2993837 568225

1931375 3856362 1924987

6956395 6956395

6956395 5025020

6956395

3100033 1924

concluded

105


ROAD AND BRIDGE PRECINCT NO 1

SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCEBUDGETAND ACTUAL STATUTORY BASIS


REVENUES

Taxes

Current taxes

Delinquent taxesPenalty and interest

IntergovernmentalVehicle license fees

Additional license fees

Permits

Investment income

Interest

Miscellaneous

Total revenues

EXPENDITURES

Current

Highways and streetsSalaries


Total expenditures


OTHER FINANCING SOURCES USES

47711015145841396321503102430960

i i nF FFc

451057145185345795

150

2758430960

1000731

4192


1495


Final Budgetary Differences StatutoryBudget Basis Over Under Basis

645883 650103 65010312000 14753 95 146586700 8414 38 8376

185000 184359 184359204000 199006 4030 19497614500 20122 20122

24000 6548 65489100 6122 1 6123

1101183 1089427 4162 1085265

47711015145841396321503102430960

i i nF FFc

451057145185345795

150

2758430960

1000731

4192 455249864 146049

1495 347290150

4500 3208430960

11051 1011782

5482 88696 15213 73483

Sale of assets 100 15764 4500 20264Transfers in 3072 3072 3072Transfers out 20000 20000 20000Total other financing sources uses 16828 1164 4500 3336




22310 87532 10713 76819

589047 589047 62399 526648

566737 676579 73112 603467


106

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDSROAD AND BRIDGE PRECINCT NO 2



Final

BudgetREVENUES

Taxes

Current taxes




Permits

Investment income

Interest

Miscellaneous

Total revenues

EXPENDITURES

Current



Total expenditures



601166100004900

18500018965212000

Actual BudgetAmounts to StatutoryBudgetary Differences

Basis Over Under

605094137647842

18435918744020542

15000 5015100 2673

1017818 1026729

Actual

Amounts

StatutoryBasis

60509487 1367735 7807

1843593647 183793

20542

150152672

3770 1022959

388538 344969 1347 346316125330 110007 155 109852377950 286457 14730 27172717300 12911 12911

220000 172200 37000 209200

1129118 926544 23462 950006

111300 100185 27232 72953

Sale of assets 100 153 37000Transfers in 81783Transfers out 21824 21824

Total other financing sources uses 21724 21671 118783

Change in fund balance 133024 78514 91551

371538178321824

97112

170065

Fund balance January 1 482400 482400 183646 298754

Fund balance December 31 349376 560914 92095 468819


107



SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCEBUDGETAND ACTUAL STATUTORY BASIS


REVENUES

Taxes

Current taxes




Permits

Investment income

Interest

Miscellaneous

Total revenues

EXPENDITURES

Current



Total expenditures

Excess deficiency of revenues

474966


150562



36647

1030270

588605 592451 59245110000 13476 84 133925400 7678 34 7644

185000 184359 184359185689 183600 3647 17995315500 20122 20122

25000 6549 654915100 34735 1158 33577

1030294 1042970 4923 1038047

474966 457541 3212158011 150562 759294765 279204 1900113151 1099552730 52729 450036647 36647

1030270 987678 10530

460753151321260203109955722936647

977148

over expenditures 24 55292 5607 60899

OTHER FINANCING SOURCES USESSale of assets 100 964 4500 5464Transfers in 44145 44145 44145Transfers out 21024 21024 21024

Total other financing sources uses 23221 24085 4500 28585

Change in fund balance 23245 79377 10107 89484

Fund balance January 1 682428 682428 77758 604670



108





REVENUES

Taxes

Current taxes


IntergovernmentalGrants

Vehicle license fees


Permits

Investment income

Interest

Miscellaneous

Total revenues

EXPENDITURESCurrent



Total expenditures



1700011100

1136059

3844262291153169 66008

384426229

1219177

498966


148421



676531 680952 68095212000 15487 98 153896500 8823 38 8785

70174 70174185000 184359 184359213428 213353 4030 20932314500 20122 20122

1700011100

1136059

3844262291153169 66008

384426229

1219177

498966 495022 2325 497347148421 142228 631 142859628992 587382 68212 51917010661 10621 1062157464 57463 1987 5547663755 63754 63754

1408259 1356470 67243 1289227

272200 203301 133251 70050

Sale of assets 30800 31273 4500 35773Transfers in 400 400 77682 78082Transfers out 87484 87481 200 87681Total other financing sources uses 56284 55808 81982 26174

Change in fund balance 328484 259109 215233 43876

Fund balance January 1 as restated 519521 519521 252001 267520



109

COUNTY OF VICTORIA TEXASNONMAJOR GOVERNMENTAL FUND

DEBT SERVICE FUNDSCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCEBUDGET AND ACTUAL


Actual BudgetAmounts to Statutory

Final Budgetary Differences

Budget Basis Over UnderREVENUES

Taxes

Current taxesDelinquent taxesPenalty and interest

Investment income

Interest

Total revenues

EXPENDITURES

Debt service


Total expenditures




1642592 165755140000 3669619800 21308

12500 2914

1714892 1718469

Actual

Amounts

StatutoryBasis

1657551433 36263193 21115

2914

626 1717843

1405000 1405000 1405000244927 244250 244250

1649927 1649250 1649250

64965 69219 626 68593

203499 203499 866 204365

268464 272718 240 272958


110

AGENCYFUNDS

Agency Funds are used to account for the monies received and disbursed by the County in the capacityof trustee custodian or agent for individuals or other entities

County ClerkTrusts Fund Accounts for monies held by the County Clerk in trust for variousminors of the County of Victoria

Criminal District Attorney Fund Accounts for the merchants portion of collections made onhot checks

District ClerkTrusts Fund Accounts for monies held by the District Clerk in trust for variousminors of the County of Victoria

I District ClerkChild Support Fund Records the collection and disbursement of child supportpayments made by residents of Victoria County

Clerks Special Fund Accounts for the collection and disbursement of excess fees collected byboth the County and District Clerks

Jail Inmate Trust Fund Accounts for monies that are held for the benefit of and use by inmatesin the County Jail

Sheriff Special Fund Records outofcounty cash bonds and various fines and fees collectedby the Sheriffsdepartment These funds are remitted to the State and other entities asappropriate

State Fees Fund Accounts for statutory additions to various fines collected by the CountyThese fees are transferred to the State and the General Fund of the County on a periodic basis

Justice of the Peace Special Fund Records the disposition of cash bonds and miscellaneousoverpayments These funds are disbursed according to court orders

Tax Assessor Collector Fund Accounts for the collection of ad valorem taxes various vehicletaxes and sales taxes by the County Tax Assessor Collector These monies are remitted toother various County funds and the State as collected

Juvenile Restitution Fund Records the receipt and disbursement of monies collected fromjuvenile offenders and paid to owners of damaged property

Special Services Fund Records confiscated drug monies prior to their being awarded byaction of the court to various individuals andor County departments

Juvenile Inmate Trust Fund Accounts for monies that are held for the benefit of and use byinmates in the County Juvenile Detention facility

CDA State Judiciary Fund Accounts for funds received from the State Comptrollers Office toprovide financial assistance to district attorneys for office expenses supplies and personnel

111

COUNTY OF VICTORIA TEXASAGENCY FUNDS

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES


DISTRICT CLERK TRUSTSASSETS

Cash and cash equivalents 2141385 905749 1034562 2012572

LIABILITIES


DISTRICT CLERKCHILD SUPPORTASSETS

Cash and cash equivalents 11702 11702

LIABILITIES


CLERKSSPECIAL

ASSETS


LIABILITIES


JAIL INMATE TRUST FUND

ASSETS


LIABILITIES


SHERIFF SPECIALASSETS


LIABILITIES


continued112

Balance at Balance at

Beginning End

of Year Additions Deletions of Year

COUNTY CLERK TRUSTS

ASSETS


LIABILITIES


CRIMINAL DISTRICT ATTORNEY

ASSETSCash and cash equivalents 2864 723275 690572 35567

LIABILITIES


DISTRICT CLERK TRUSTSASSETS


LIABILITIES


DISTRICT CLERKCHILD SUPPORTASSETS

Cash and cash equivalents 11702 11702

LIABILITIES


CLERKSSPECIAL

ASSETS


LIABILITIES


JAIL INMATE TRUST FUND

ASSETS


LIABILITIES


SHERIFF SPECIALASSETS


LIABILITIES


continued112





Beginning EndoYear Additions Deletions of Year

STATE FEES

ASSETS

Cash and cash equivalentsOther receivables

Total assets

LIABILITIES

Accounts payable

JUSTICE OF THE PEACE SPECIALASSETS

Cash and cash equivalents

LIABILITIES

Accounts payable

TAX ASSESSOR COLLECTOR

ASSETS


Total assets

LIABILITIES

Accounts payableDue to other governments

Total liabilities

JUVENILE RESTITUTIONASSETS


LIABILITIES

Accounts payable

SPECIAL SERVICESASSETS

Cash and cash equivalentsSeized assets

Total assets

LIABILITIES

Accounts payable

190650 1263357 1255227 19878014378 3363 14378 3363

205028 1266720 1269605 202143

4880030

205028 1266720 1269605 202143

1014 11644 12252 406

1014 1 11644 12252

4843127 135136572 132242052 773764736903 33734 36903 337344880030 135170306 132278955 7771381

39390 127472529 127438315 736044840640 7697777 4840640 76977774880030 135170306 132278955 7771381

19 648 647 20

19 648 647 20

56011 194491 200755 497473855 22180 12230 1380559866 216671 212985 63552

59866 216671 212985 63552

406

continued

113




JUVENILE INMATE TRUST FUND

ASSETS


LIABILITIES

Accounts payable

CDA STATE JUDICIARY FUND

ASSETS

Due from other governments

LIABILITIES

Accounts payable

TOTALS ALL AGENCY FUNDS

ASSETS


Due from other governmentsSeized assets

Total assets

LIABILITIES

Accounts payableDue to other governments

Total liabilities


Beginning End

of Year Additions Deletions ofYear

726 3413 3889 250

726 3413 3889 250

5502 3886 5502 3886

5502 3886 5502 3886

8262189 139920368 137219412 1096314551281 37097 51281 370975502 3886 5502 38863855 22180 12230 138058322827 139983531 137288425 11017933

3482187 132285754 132447785 33201564840640 7697777 4840640 76977778322827 139983531 137288425 11017933

concluded

114

STATISTICAL SECTION

This part of the Countyscomprehensive annual financial report presents detailed information as a context forunderstanding what the information in the financial statements note disclosures and required supplementaryinformation says about the Countysoverall financial health

Contents Page

Financial Trends

These schedules contain trend information to help the reader understand how theCountysfinancial performance and wellbeing have changed over time 116

Revenue CapacityThese schedules contain information to help the reader assess the factors affecting theCountysability to generate its property tax and sales tax revenues 127

Debt CapacityThese schedules present information to help the reader assess the affordability of theCountyscurrent levels of outstanding debt and the Countysability to issue additionaldebtin the future 140

Demographic and Economic InformationThese schedules offer demographic and economic indicators to help the readerunderstand the environment within which the Countysfinancial activities take place andto help make comparisons over time and with other governments 145

Operating InformationThese schedules contain information about the Countysoperations and resources tohelp the reader understand how the Countysfinancial information relates to the servicesthe County provides and the activities it performs 147

115

COUNTY OF VICTORIA TEXASNET ASSETS BY COMPONENT 1Last seven fiscal years

Fiscal Year

2003


Invested in capital assetsnet of related debt 8999425

Restricted 151540Unrestricted 7275730

Total governmental activities net assets 16426695

2004

125597083572458764650

21681603

2005

14019641727782

10092 763

24840186

2006

13930982713370

13929933

28574285

Businesstype activitiesInvested in capital assets

net of related debt 5830794 7020823 8662029 9540853Unrestricted 647764 294558 15726 127521

Total business type activities net assets 6478558 7315381 8646303 9413332

Primary GovernmentInvested in capital assets

net of related debt 14830219 19580531 22681670Restricted 151540 357245 727782Unrestricted 7923494 9059208 10077037

Total primary government activities net assets 22905253 28996984 33486489

23471835713370

13802412

37987617

1 Accrual basis of accounting

NOTES The County began to report accrual information when it implemented GASB Statement 34in fiscal year 2003

Beginning with fiscal year 2008 the County followed the Statutory Basis of Accounting Prior yearsare prepared in accordance with GAAP

116

Fiscal Year

2007 2008 2009

14451437 16490648 18800745354100 484274 47949517001719 12797072 8952624

31807256 29771994 28232864

9881812 9991881 1006979356927 155922 155866

9938739 10147803 10225659

24333249 26482529 28870538354100 484274 479495

17058646 12952994 9108490

41745995 39919797 38458523

117

COUNTY OF VICTORIA TEXASCHANGES IN NETASSETS 1Last seven fiscal years

Fiscal Year

2003 2004 2005 2006


ExpensesGeneral governmentPublic safetyStreets and highwaysCulture and recreation

Public health

Interest on longterm debt

Total expenses

Program revenuesCharges for services

General governmentPublic safetyStreets and highwaysCulture and recreation

Public health

Operating grants and contributionsCapital grants and contributions

Total program revenues

Total governmental activities net programexpenserevenue

General revenues and other changes in netassets

Taxes

Property taxesSales taxesOther taxes

Grants and contributions not restricted tospecific programs

Unrestricted investment earningsGain loss on disposition of capital assetsMiscellaneous

Payments to component unitsSpecial item loss on refundingTransfers

13173038 13237845 14149101 145754569285840 9333043 9929954 109422183414048 3255108 4232306 42445231248392 1195419 1293663 13403563547555 3584444 3653066 3860870548963 446612 430889 390875

31217836 31052471 33688979 35354298

5342455 4933859 4589676 52954743884817 3818691 3401404 34932831892593 1695264 1750489 17444652540

353498 530418 375485 4446263277410 3280496 3227144 3410606350313 509910 695671 7584

15103626 14768 638 14039869 14396 038

16114210 16283833 19649110 20958260

12817 909 14234 749 15180030 15637 4885069316 5608969 6005658 7153556

204454 215784 216996

10847 112354 124118 232154223724 273807 585776 102900047787 81271 235488 84566955849 743036 463016 3656645660027374340017 238457 130000 130000

Total general revenues and other changes innet assets 18701441 21020183 22679870 24589424

Total governmental activities change in netassets 2587231 4736350 3030760 3631164

118

Fiscal Year

2007 2008 2009

15640516 19234562 1784554611518191 14741608 157518053804550 4400102 42200571504003 465943 4627624157317 4294718 4319623398919 304359 239157

37023496 43441292 42838950

5123021 5145235 52809192303680 2457863 20668811771764 1739696 1586389

648392 668449 8289163868765 4782081 415900661764 769421

13777386 14793324 14691532

23246110 28647968 28147418

16774618 17808933 191999297371870 7813529 6620902228363 210783 223178

328962 365459 2005911215536 507091 166674

410217 379770 606628

648126 472859 409614

25681440 26612706 26608288

2435330 2035262 1539130

continued

119

COUNTY OF VICTORIA TEXASCHANGES IN NET ASSETS 1Last seven fiscal years

Fiscal Year

2003 2004 2005 2006

Businesstype activitiesExpenses

AirportNavarro ProjectCommisary

Total expenses

Program revenuesCharges for services

AirportNavarro ProjectCommisary

Operating grants and contributionsCapital grants and contributions

Total program revenues

Total businesstype activities net programexpense revenue

General revenues and other changes in netassets

Unrestricted investment earningsGain loss on disposition of capital assetsMiscellaneous

Transfers

Total general revenues and other changes innet assets

2188872 2328426 2301212 2603568503268 466392 481568 512537240192 80541 73431 103240

2932332 2875359 2856211 3219345

1424414 1507081 1559650 1634860534130 535960 535960 543917280255 91400 81269 88106

80000192817 1323954 1773311 1483028

2431616 3458395 3950190 3829911

500716 583036 1093979 610566

14947 13983 23499 287021615 223922638 1347340017 238457 130000 130000

379217 253787 153499 156463

Total businesstype activities change in netassets 121499 836823 1247478 767029

Total primary government change in netassets

1 Accrual basis of accounting

2465732 5573173 4 4398193

NOTES The County began to report accrual information when it implemented GASB Statement 34in fiscal year 2003


120

Fiscal Year

2007 2008 2009

2874801 3678423 2950244576777 583104 608712104128 117250 92737

3555706 4378777 3651693

1685134 2604426 1860584547157 512461 52814390917 94666 982357494 27152 65221080710 865997 825097

3411412 4104702 3318581

144294 274075 333112

17659 10280 1354

3916648126 472859 409614

669701 483139 410968

525407 209064 77856

2960737 1826198 1461274

concluded

121

COUNTY OF VICTORIA TEXASFUND BALANCES GOVERNMENTAL FUNDS 1Last seven fiscal years

Fiscal Year

2003 2004 2005 2006

General Fund

Reserved

Advances 494610 297670 362219 362219Adult Probation 31108 33999 24513 26882Deferred expenditures 275913

Unreserved 2895612 5641834 8139621 11273877

Total general fund 3421330 5973503 8526353 11938891

All Other Governmental Funds

Unreserved reported inSpecial revenue funds 3449442 3246520 2460438 2303054Capital project funds 626255 678986 304760Debt service funds 151540 212187 252772 126807

Total all other governmental funds 4227237 4137693 3017970 2429861

1 Modified accrual basis of accounting

NOTES Due to the changes in the Countysfund structure initiated when GASB Statement No 34 was implementedthe fund balance information is available only beginning in 2003


122

I

Fiscal Yea2007 2008 2009

211766 120690 5084815767 17149 86758794

12267877 823098 3965140

12504204 8368822 4024663

2992795 2671741 2686483

117545 204365 2729583110340 2876106 2959441

123

COUNTY OF VICTORIA TEXASCHANGES IN FUND BALANCES GOVERNMENTAL FUNDS 1Last seven fiscal years

Fiscal Year

2003 2004 2005 2006

Revenues

Taxes 17902538 19855785 21232178 23030801Fees of office and user fees 2207983 2595533 2472287 2820340Intergovernmental 10546682 10035336 9830274 9432658Fines and forfeitures 1619602 1403048 1463626 1589568Investment income 223670 272257 585742 1028984Licenses and permits 40053 36451 33524 37074Contributions 10847 36466 16085 13389Miscellaneous 1470100 1167551 867932 811325

Total revenues 34021475 35402427 36501648 38764139

ExpendituresCurrent

General government 13068813 13277443 14278131 14921068Public safety 8614925 8963262 9283373 10682752Highways and streets 3331107 3808439 4337766 4327674Culture and recreation 1190649 1157450 1241058 1298407Public health 3554074 3489244 3712723 3903367

Capital outlay 2971375 542487 643352 155250Debt service

Principal retirement 975000 1160000 1225000 1265000Interest and fiscal charges 592782 440642 417093 377923Bond issue costs 84130

Total expenditures 34382855 32838967 35138496 36931441

Excess deficiency of revenues overexpenditures 361380 2563460 1363152 1832698

Other financing sources usesProceeds from refunding issue 3379969Payment to escrow 3292343Capital lease proceeds 182393 139923 1493422Capital lease refinancing proceeds 2351458Capital lease refinancing payments 2272716Sales of assets 108245 392955 303975 103309Transfers in 1630468 1967450 2091364 1976294Transfers out 1970485 2205907 2325364 2581294Payment from component unit 8400Payment to component unit 65000

Total other financing sources uses 18353 373163 69975 991731

Change in fund balances 379733 2936623 1433127 2824429

Debt service as a percentage ofnoncapital expenditures

1 Modified accrual basis of accounting

NOTES Due to the changes in the Countysfund structure initiated when GASB Statement No 34 was implementedthe fund balance information is available only beginning in 2003Beginning with fiscal year 2008 the County followed the Statutory Basis of Accounting Prior yearsare prepared in accordance with GAAP

124

Fiscal Year

2007 2008 2009

24218139 25882890 261615692867161 2755103 29786558985485 10490501 89547161742243 1422624 14151321213768 507091 16667433967 38501 5396611510 25565 5350

882228 843912 876511

39954501 41966187 40612573

15770505 19430296 1762925811406589 14020458 153069664048835 4713221 42281631460636 418550 3895584152679 4294492 428973294590 1 734192 175844

1300000 1360000 1405000337967 293390 244250

38571801 45264599 43668771

1382700 3298412 3056198

446095 105324 282872

65123 46331 1221162260283 1960363 24375602908409 3183222 4047174

1071204136908 1204626

1245792 4369616 4260824

446 388

125

COUNTY OF VICTORIA TEXASTAX REVENUES BY SOURCE GOVERNMENTAL FUNDS 1Last ten fiscal years

Fiscal Penalty

2000 10946670 110413 4729825 15786908

2001 11271769 116602 4992320 16380691

2002 12230688 118211 4858298 17207197

2003 12700002 133220 4921323 17754545

2004 14103669 143147 5546861 19793677

2005 15099157 199308 6005659 21304124

2006 15676262 200983 7153556 23030801

2007 16671552 174717 7371870 24218139

2008 17862422 206939 7813529 25882890

2009 19291055 249612 6620902 26161569

Change20002009 7623 12607 3998 6572

1 Fiscal year 2005 through 2009 revenues are reported on the modified accrual basis of accountingFiscal years 2004 and prior are reported on the budgetary cash basis of accounting

NOTE Property tax rates have remained stable because of growth in property tax values and theaddition of new construction values

Sales tax revenues decreased in 2009 due to the sluggish economy

126

COUNTY OF VICTORIA TEXASASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

Last ten fiscal years

Real Property Personal Property

2007 2006

2008

Commercial and Rural

Fiscal Tax Residential Industrial UnderdevelopedYear Roll Property Property Property

2000 1999 1370867910 1390411865 328617480

2001 2000 1462005110 1402923085 315673240

2002 2001 1515610710 1328121065 315270880

2003 2002 1625755010 1307594240 319775450

2004 2003 1670101235 1285202470 320599730

2005 2004 1782811934 1237970296 335934884

2006 2005 1905321796 1209303582 337207302

2007 2006

2008 2007

2009 2008

Business Other

813040260 36773080

829 047 241 50523 510

892710483 163977230

910136402 101305210

938958351 92863880

1035824147 132133780

1156136179 158759680

1170881088 233718540

1318729750 172605020

775855861 1426409672 186276940

1 Values on property for maintenance and operation and interest and sinking taxesProperty exemptions differ from those allowed on road and bridge taxes

NOTE Property in the County is reassessed annually The County assesses property at 100 percent of actualtaxable value for all types of real and personal property Tax rates are per 100 of assessed value

SOURCE Victoria County Tax AssessorCollector

2140430476 1216832909 749798431

2362393502 1270200090 779593229

2524604662 1397333856

127

696442858 3243267737 02810

Total Estimated Assessed

Less Total Taxable Direct Actual Value 1 as aTax Exempt Assessed Tax Taxable Percentage ofReal Property Value Rate Value Actual Value

696442858 3243267737 02810 3243267737 10000

734781242 3325390944 02860 3325390944 10000

690637420 3525052948 03035 3525052948 10000

707407494 3557158818 03201 3557158818 10000

754830546 3552895120 03536 3552895120 10000

812709653 3711965388 03536 3711965388 10000

806522045 3960206494 03486 3960206494 10000

1261388725 4250272719 03436 4250272719 10000

1313651006 4589870585 03436 4589870585 10000

1301579120 5008901871 03436 5008901871 10000

128

COUNTY OF VICTORIA TEXASASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY


1 Values on property for road and bridges taxesProperty exemptions differ from those allowed on maintenance and operation and interest and sinking taxes



r

129

Real Property Personal Property

Commercial and Rural

Fiscal Tax Residential Industrial UnderdevelopedYear Roll Property Property Property Business Other

2000 1999 1370867910 1390411865 328617480 813040260 36773080

2001 2000 1462005110 1402923085 315673240 829047241 50523510

2002 2001 1515610710 1328121065 315270880 892710483 163977230

2003 2002 1625755010 1307594240 319775450 910136402 101305210

2004 2003 1670101235 1285202470 320599730 938958351 92863880

2005 2004 1782811934 1237970296 335934884 1035824147 132133780

2006 2005 1905321796 1209303582 337207302 1156136179 158759680

2007 2006 2140430476 1216832909 749798431 1170881088 233718540

2008 2007 2362393502 1270200090 779593229 1318729750 172605020

2009 2008 2524604662 1397333856 775855861 1426409672 186276940

1 Values on property for road and bridges taxesProperty exemptions differ from those allowed on maintenance and operation and interest and sinking taxes



r

129

f

130

Total Estimated Assessed

Less Total Taxable Direct Actual Value 1 as aTax Exempt Assessed Tax Taxable Percentage of

Real Property Value Rate Value Actual Value

793443106 3146267489 00600 3146267489 10000

836884962 3223287224 00550 3223287224 10000

797088372 3418601996 00450 3418601996 10000

817364812 3447201500 00400 3447201500 10000

868888776 3438836890 00450 3438836890 10000

926295902 3598379139 00450 3598379139 10000

924708177 3842020362 00500 3842020362 10000

1379896539 4131764905 00550 4131764905 10000

1437997578 4465524013 00550 4465524013 10000

1431114690 4879366301 00550 4879366301 10000

130

COUNTY OF VICTORIA TEXASDIRECT AND OVERLAPPING PROPERTY TAX RATES

PER 100 OF ASSESSED VALUE


SOURCE Victoria County Appraisal District

131

County Direct Rates Overlapping RatesRoad Victoria

Fiscal Debt General Bridge City of Navigation Junior Victoria BloomingtonYear Service Fund Fund Total Victoria District College ISD ISD

2000 00299 02511 00600 03410 07000 00418 01394 14750 15490

2001 00299 02561 00550 03410 07000 00414 01394 15285 15350

2002 00457 02578 00450 03485 07000 00401 01394 15510 15800

2003 00437 02764 00400 03601 07000 00404 01394 15535 16630

2004 00461 03075 00450 03986 07000 00402 01491 15535 16672

2005 00435 03101 00450 03986 06900 00386 01461 15535 16433

2006 00368 03118 00500 03986 06900 00369 01416 15535 16433

2007 00379 03057 00550 03986 06900 00335 01416 14285 14913

2008 00380 03056 00550 03986 06750 00317 01445 12337 12101

2009 00349 03087 00550 03986 06500 00314 01445 13094 12101

SOURCE Victoria County Appraisal District

131

Overlapping RatesGround Quail

Industrial Nursery McFaddin WCID WCID VCDD VCDD Water Creek

ISD ISD ISD 1 2 2 3 District MUD Total

14700 13350 15000 06629 11229 00972 00500 01900 103332

16200 13950 13650 06427 10793 00976 00500 01900 103839

19894 13850 12400 06551 10880 00979 00500 01900 107059

19387 13700 15000 06262 10332 01103 00500 01900 109147

18485 08998 15000 06146 10187 01241 00500 01937 103594

17361 10250 14500 06162 09911 01247 00477 01896 102519

15893 13700 14600 04947 09016 01240 00460 01840 102349

13600 12540 14395 04687 09391 01120 00461 00100 01777 95920

13234 11565 11875 06772 08757 01131 00427 00100 01749 88560

13770 11055 11650 07246 10529 01116 00398 00100 01768 91086

132

COUNTY OF VICTORIA TEXASPRINCIPAL PROPERTY TAXPAYERS

Current Year and Nine Years Ago

2009

Taxpayer

Invista

Invista S A R L

South Texas Electric Coop IncAEP Texas Central Co

E I Dupont De Nemours

Equistar Chemicals LP

Union Gas Operating Co

Southwestern Bell Telephone Co

Victoria Hospital LLCValerus Compression Services

Taxpayer

EI DuPont De Nemours and Company

Equistar Chemicals LPCentral Power and Light

Air Liquide America CorpSouthwestern Bell Telephone CompanyCarlisle Plastics Inc

MRO Commercial Inc

Victoria Hospital LLCVRMC Limited PartnershipWayne James A

Percentageof Total County

Taxable Taxable

Assessed Assessed

Valuation Valuation

236713620 520

96832080 213

87699540 193

42579280 094

37648310 083

26381 520 058

26035650 057

23630650 052

23496570 052

22048990 048

623066210 1370

iZiL

899726500 2218


133

Percentageof Total County

Taxable Taxable

Assessed Assessed

Valuation Valuation

593797130 1463

59465600 147

57939 210 143

56198310 139

38563040 095

24909500 061

23952590 059

19727390 049

14757670 036

10416060 026

899726500 2218


133

COUNTY OF VICTORIA TEXASPROPERTY TAX LEVIES AND COLLECTIONS1Last six fiscal years

1 Tax levies and collections on maintenance and operation and interest and sinking only

NOTE Information for fiscal years 2000 through 2003 was not readily available


134

Taxes Levied Collections within the

for the Fiscal Year of the LevyFiscal Fiscal Year Total PercentageYear Original Levy Adjustments Adjusted Levy Amount of Levy

2004 12565142 13930 12579072 12297626 9776

2005 13128311 293542 13421853 13134288 9786

2006 13807127 69838 13737289 13471286 9806

2007 14548615 49062 14499553 14199891 9793

2008 15579099 40217 15538882 15213071 9790

2009 16908347 68191 16840156 16440126 9762

1 Tax levies and collections on maintenance and operation and interest and sinking only



134

Collections

in SubsequentYears

Total Collections to Date

239042 12536668

241504 13375792

213488 13684774

220429 14420320

193691 15406762

51508 16491634

Percentageof Levy

9966

9966

9962

9945

9915

9793

135

COUNTY OF VICTORIA TEXASPROPERTY TAX LEVIES AND COLLECTIONS 1Last six fiscal years

1 Tax levies and collections on road and bridge only



136

Taxes Levied Collections within the

for the Fiscal Year of the LevyFiscal Fiscal Year Total PercentageYear Original Levy Adjustments Adjusted Levy Amount of Levy

2004 1547823 1324 1549147 1515798 9785

2005 1619739 34839 1654 578 1620549 9794

2006 1921399 10937 1910462 1875102 9815

2007 2245643 8130 2237513 2192993 9801

2008 2407502 9521 2397981 2348887 9795

2009 2619091 11872 2607219 2549796 9780

1 Tax levies and collections on road and bridge only



136

Collections Total Collections to Date

in Subsequent PercentageYears Amount of Levy

28120 1543918 9966

28386 1648935 9966

28164 1903266 9962

32636 2225629 9947

29276 2378163 9917

4735 2554530 9798

137

COUNTY OF VICTORIA TEXASSALES TAX REVENUE


Fiscal Yea

2000

2001

2002

2003

2004

2005

2006

2007

Collections

4729825

4992320

4858298

4921323

5546861

5883458

6918443

7179 370

2008

2009

7584672

6664519

NOTES Collections reported on the budgetary cash basis of accounting

Detailed information related to sales tax collections will be provided in subsequent years

The decrease in sales tax revenue is due to the sluggish economy

138

COUNTY OF VICTORIA TEXASDIRECT AND OVERLAPPING SALES TAXRATES


Fiscal Direct Rate Overlapping RatesYear County City of Victoria State of Texas Total

2000 050 150 625 825

2001 050 150 625 825

2002 050 150 625 825

2003 050 150 625 825

2004 050 150 625 825

2005 050 150 625 825

2006 050 150 625 825

2007 050 150 625 825

2008 050 150 625 825

2009 050 150 625 825

NOTE Eventhough the total sales tax rate is 825 sales occurring outside the City of VictoriaCity limits would only be taxed at675 which is the combination of the County andthe State of Texas sales tax rates

Texas counties have the option of imposing an additional local sales tax of 05to 15for a combined total of state and local taxes of825

139

COUNTY OF VICTORIA TEXASRATIOS OF OUTSTANDING DEBT BY TYPE


Businesstype

NOTES Details regarding the Countys outstanding debt can be found in the notes to thefinancial statements

NAdenotes information not available

140

Governmental Activities Activities

General Total PercentageFiscal Certificates of Obligation Revenue Primary of Personal Per

Year Obligation Bonds Bonds Government Income Capita

2000 10375000 1545000 11920000 073 14176

2001 5000000 9485000 1490000 15975000 098 18858

2002 5000000 8575000 1425510 15000510 091 17662

2003 5000000 7715000 1370000 14085000 082 16494

2004 4700000 6855000 1305000 12860000 071 14979

2005 4385000 5945000 1235000 11565000 NA 13503

2006 4060000 5005000 1160000 10225000 NA 11863

2007 3720000 4045000 1085000 8850000 NA 10268

2008 3370000 3035000 1005000 7410000 NA 8525

2009 3005000 1995000 920000 5920000 NA 6865

NOTES Details regarding the Countys outstanding debt can be found in the notes to thefinancial statements

NAdenotes information not available

140

COUNTY OF VICTORIA TEXASRATIOS OF NET GENERAL BONDED DEBT OUTSTANDING


141

Ratio of Net Net

General Debt Service Net Bonded Debt Bonded Debt

Fiscal Obligation Funds Bonded to Assessed PerYear Bonds Available Debt Value Capita

2000 10375000 368023 10006977 025 11901

2001 14485000 25218 14459782 036 17070

2002 13575000 144701 13430299 032 15813

2003 12715000 151540 12563460 029 14712

2004 11555000 212187 11342813 026 13212

2005 10330000 252772 10077228 022 11766

2006 9065000 126807 8938193 019 10370

2007 7765000 117545 7647455 014 8873

2008 6405000 204365 6200635 011 7134

2009 5000000 272958 4727042 007 5482

141

COUNTY OF VICTORIA TEXASDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

December 31 2009

Percentage Amount

Net Debt Outstanding Applicable ApplicableDate Amount To County To County

Direct Debt

County of Victoria

Overlapping Debt

City of Victoria

Victoria County Navigation District

Victoria Junior College District

Victoria Independent School District

Industrial Independent School District

Victoria County Water Control andImprovement District 1

Victoria County Water Control andImprovement District 2

Total Overlapping Debt

Total

12312009 4727042 10000 4727042

9302009 67597335 10000 67597335

12312009 7394427 10000 7394427

8312009 19605000 10000 19605000

8312009 178572979 10000 178572979

8312009 8239673 2546 2097821

6302009 1488619 10000 1488619

9302009 715257 10000 715257

283613290 277471438

288340332 282198480

SOURCE County of Victoria City of Victoria Victoria Junior College Victoria Independent School DistrictIndustrial Independent School District Victoria County Water Control and Improvement DistrictNumbers 1 and 2

142

COUNTY OF VICTORIA TEXASLEGAL DEBT MARGIN INFORMATION


Debt limit

Total net debt applicableto limit

Legal debt margin

Total net debt applicable tothe limit as a percentageof debt limit

Fiscal Year

2000 2001 2002 2003

1014478137 1015043047 1053922592 1066141578

10006 977 14459 782 13 430299 12563 460

1004471160 1000583265 1040492293 1053578118

099 142 127 118

143

Fiscal Year

2004 2005 2006 2007 2008 2009

1076931417 1131168760 1191682135 1377915361 1475880398 1577620248

11342813 10077228 8938193 204365 6200635 4727042

1065588604 1121091532 1182743942 1377710996 1469679763 1572893206

105 089 075 001

Legal Debt Margin Calculation for Fiscal Year 2008

Assessed value

Debt limit

Debt applicable to limitGeneral obligation bondsLess Debt Service Fund Balance

Total amount of debt applicable to debt limit

Legal debt margin

144

042 030

6310480991

1577620248

4727042

1572893206

5000000272958

COUNTY OF VICTORIA TEXASDEMOGRAPHIC STATISTICS


2Per Capita

Personal Income

26552

26837

27234

27952

29399

31261

33331

35121

37788

NA

3Unemployment

35

40

52

52

52

54

41

35

39

71

NOTE NAdenotes information not available

SOURCE 1 Victoria Economic Development Corporation

2 US Department of Commerce Bureau of Economic Analysis Estimates based onVictoria County Area statistical data Data for 2009 is not yet available

3 US Department of Labor

145

1 2Fiscal Personal

Year Population Income 000s

2000 84088 1643118

2001 84710 1626405

2002 84932 1650480

2003 85395 1721244

2004 85853 1810364

2005 85648 2656877

2006 86191 2838256

2007 86291 3026271

2008 86916 3278989

2009 86236 NA

2Per Capita

Personal Income

26552

26837

27234

27952

29399

31261

33331

35121

37788

NA

3Unemployment

35

40

52

52

52

54

41

35

39

71

NOTE NAdenotes information not available

SOURCE 1 Victoria Economic Development Corporation

2 US Department of Commerce Bureau of Economic Analysis Estimates based onVictoria County Area statistical data Data for 2009 is not yet available

3 US Department of Labor

145

COUNTY OF VICTORIA TEXASPRINCIPAL EMPLOYERS

Current Year and Nine Years Ago

SOURCE Victoria Economic Development Corporation

NOTE Based on Victoria Metropolitan Statistical Area which includes VictoriaCalhoun Dewitt Lavaca Gonzales Jackson and Goliad Counties

146

2009

Percentageof Total Area

Employer Employees Employment

Victoria Independent School District 2128 500

Formosa Plastics 1530 360

Citizens Medical Center 1334 314

The Inteplast Group 1300 306

DeTar Healthcare System 986 232

Calhoun Independent School District 650 153

HEB 636 150

County of Victoria 620 146

Dow Seadrift Operations 607 143

City of Victoria 605 142

10396 2446

2000

Percentageof Total Area

Employer Employees Employment

Victoria Independent School District 2367 564

The Inteplast Group 1700 405

Formosa Plastics 1500 357

Citizens Medical Center 1280 305

Koch Invista formerly DuPont 1150 274

Dow Seadrift Operations 1050 250

Alcoa 965 230

DeTar Healthcare System 925 220

City of Victoria 610 145

Calhoun Independent School District 608 145

12155 2895

SOURCE Victoria Economic Development Corporation

NOTE Based on Victoria Metropolitan Statistical Area which includes VictoriaCalhoun Dewitt Lavaca Gonzales Jackson and Goliad Counties

146

COUNTY OF VICTORIA TEXASFULLTIME EQUIVALENT COUNTY GOVERNMENT EMPLOYEES BY FUNCTIONPROGRAM

Last seven fiscal years

Fiscal Year

FunctionProgramGeneral government

County JudgeComissioners court

Records managementCounty clerkVeterans service officer

Heritage directorCounty court at law 1County court at law 2District court

District clerk

Justice of the peace 1Justice of the peace 2Justice of the peace 3Justice of the peace 4Criminal district attorneyElection administrator

County auditorCounty treasurerTax assessor collector

Administrative services

Information technologyBuilding maintenanceJuvenile detention facility

Public safetyFire marshal

Sheriff

Constable 1

Constable 2

Constable 3

Constable 4

Culture and recreation

Parks and recreation

Extension service

Public healthincludes floodemg mgmt health deptHighways and streetsAirportCommissaryNavarro Project

2003 2004 2005 2006

Total

3 3 3 3

1 1 1 1

16 16 16 16

1 1 1 12 1 1 1

2 2 2 2

2 2 2 2

10 10 10 10

13 13 13 14

2 2 2 2

2 2 2 2

6 6 6 5

3 3 3 3

20 20 20 20

3 3 3 3

8 8 8 8

6 6 5 615 15 15 15

3 3 3 45 5 5 7

8 8 8 8

63 58 62 68

2 2 2 2

157 157 155 176

1 1 1 1

1 1 1 11 1 1 1

1 1 1 1

3 2 2 27 7 7 7

57 57 55 5643 39 40 40

14 14 19 191 1 1 24 1 1 2

486 472 477 511

NOTE A full time employee is scheduled to work 2080 hours per year including vacation and sick leaveFull time equivalent employment is calculated by dividing total labor hours by2080

Fiscal year 2009 additions were mainly due to the increase in the patrol officers in the Sheriffsdepartment

Information for fiscal years 2000 through 2002 was not readily available147

148

Fiscal Year

2007 2008 2009

3 3 3

1 2 1

1 1 2

16 16 161 1 1

1 1 1

2 2 2

2 2 2

10 11 11

15 14 16

2 2 3

2 2 3

5 5 5

3 3 3

22 22 23

3 3 3

8 8 8

5 5 5

15 15 16

4 4 4

7 7 7

8 8 11

68 68 68

2 2 6

182 184 194

1 1 1

1 1 11 1 1

1 1 1

2 2 27 7 7

69 68 6942 42 43

19 19 152 2 2

3 3 3

536 538 559

148

COUNTY OF VICTORIA TEXASOPERATING INDICATORS BY FUNCTIONPROGRAM

Last four fiscal years


149

Fiscal Year

2006 2007 2008 2009


County CourtCriminal cases filed 2723 2556 2092 2089Criminal case dispositions 3057 3301 2338 2214Civil cases filed 532 578 521 520

Civil case dispositions 442 656 507 688

Juvenile cases filed 235 146 126 144

Juvenile case dispositions 214 176 105 113

District Court

Criminal cases filed 1003 848 838 788

Criminal case dispositions 988 916 859 1001Civil cases filed 3170 3053 3022 2558Civil case dispositions 3095 3006 3186 2321

Justice of the Peace

Civil cases filed 750 788 1217 941Criminal cases filed 17420 15043 11547 13169

Elections Administrator

New registrations 3592 2221 4253 1542Elections held 11 2 5 2

County AuditorAccounts payable invoices processed 24099 19746 18749 18607

County TreasurerPayroll checks processed 16963 17003 18069 17630

Tax Assesor collector

Automobile Registrations 87569 88853 86190 85729Public Safety

Sheriff

Emergency 911 calls received 4673 4667 4780 4917Fire marshal

Fires 434 143 391 247Culture and Recreation

Parks and recreation

Cabana rentals 24 25 22 31

Public health

Health DepartmentImmunizations administered 8320 13661 13967 13499AdultChild health screening visits 582 2571 1203 1135Dental clinic visits 7910 2484 2811 2597EnviromentalInspections Permits 1064 2796 2895 3318Mosquito control trips 176 293 62 76Animal control calls 3174 11824 9292 9675

Highways and streetsRoad and bridge precincts

Miles of roads overlayed 30 15 20 21


149

COUNTY OF VICTORIA TEXASCAPITAL ASSET STATISTICS BY FUNCTIONPROGRAM

Last seven fiscal years

Fiscal Year

2003 2004 2005 2006


Buildings 8 8 8 9

Parking Lots 3 3 3 3

Public safetySheriff

Jail 1 1 1 1

Patrol units 52 57 51 53

Fire Marshal

Stations 1 1 1 1

Fire Trucks 3 3 3 4

Highways and streetsRoads miles NA 59075 59075 59613

Bridges 90 90 90 90

Landfills 4 3 2 2

Culture and recreation

Lake acreage 95 95 95 95

Boat Ramps 2 2 2 2

Extension Office 1 1 1 1

4 H Activity Center 1 1 1 1

Public Health

Animal Shelter 1 1 1 1

AirportTHanger 6 6 6 6Terminal 1 1 1 1

Navarro Lse ProjectBuilding 1 1 1 1

NOTES NA denotes information not available

Information for fiscal years 2000 through 2002 was not readily available

SOURCES Various County Departments

Texas Department of Transportation

150

Fiscal Year

2007 2008 2009

9 9 8

3 3 3

1 1 1

58 61 68

1 1 1

5 4 4

59549 59549 59918

90 90 90

2 2 3

95 95 952 2 2

1 1 1

1 1 1

1 1 1

6 6 61 1 1

1 1 1

151

SINGLE AUDIT SECTION

HARRISON WALDROP UHEREELLP

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



We have audited the statutory basis financial statements of the governmental activities the business typeactivities the aggregate discretely presented component units each major fund and the aggregateremaining fund information of County of Victoria Texas the County as of and for the year endedDecember 31 2009 which collectively comprise the Countysbasic financial statements and have issuedour report thereon dated June 11 2010 Our report was modified to include a reference to other auditorsWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States Other auditors audited the financial statements ofthe Citizens Medical Center and the Victoria County Child Welfare Board as described in our report onthe Countysfinancial statements The financial statements were not audited in accordance with

Government Auditing Standards

Internal Control Over Financial Reporting

In planning and performing our audit we considered the Countys internal control over financial reportingas a basis for designing our auditing procedures for the purpose of expressing our opinions on thefinancial statements but not for the purpose of expressing an opinion on the effectiveness of the Countysinternal control over financial reporting Accordingly we do not express an opinion on the effectiveness ofthe Countysinternal control over financial reporting

A control deficiency exists when the design or operation of a control does not allow management oremployees in the normal course of performing their assigned functions to prevent or detectmisstatements on a timely basis A significant deficiency is a control deficiency or combination of controldeficiencies that adversely affects the Countys ability to initiate authorize record process or reportfinancial data reliably in accordance with generally accepted accounting principles such that there is morethan a remote likelihood that a misstatement of the Countys financial statements that is more thaninconsequential will not be prevented or detected by the Countys internal control

A material weakness is a significant deficiency or combination of significant deficiencies that results inmore than a remote likelihood that a material misstatement of the financial statements will not beprevented or detected by the Countysinternal control

MEMBERS OFAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

STEPHEN WVAN MANEN CPA

HAMILTON H REDMON CPADENNIS CCIHAL CPAHWU ERIC L KUCERA CPA

CLAYTON P VAN PELT CPA

ROBERT WSCHAAR CPA

MELISSA M TERRY CPACERTIFIED PUBLIC ACCOUNTANTS

101 S MAIN SUITE 400 VOICE 361 5733255VICTORIA TEXAS 779018142 FAX 361 5739531

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



We have audited the statutory basis financial statements of the governmental activities the business typeactivities the aggregate discretely presented component units each major fund and the aggregateremaining fund information of County of Victoria Texas the County as of and for the year endedDecember 31 2009 which collectively comprise the Countysbasic financial statements and have issuedour report thereon dated June 11 2010 Our report was modified to include a reference to other auditorsWe conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standardsissued by the Comptroller General of the United States Other auditors audited the financial statements ofthe Citizens Medical Center and the Victoria County Child Welfare Board as described in our report onthe Countysfinancial statements The financial statements were not audited in accordance with

Government Auditing Standards

Internal Control Over Financial Reporting

In planning and performing our audit we considered the Countys internal control over financial reportingas a basis for designing our auditing procedures for the purpose of expressing our opinions on thefinancial statements but not for the purpose of expressing an opinion on the effectiveness of the Countysinternal control over financial reporting Accordingly we do not express an opinion on the effectiveness ofthe Countysinternal control over financial reporting

A control deficiency exists when the design or operation of a control does not allow management oremployees in the normal course of performing their assigned functions to prevent or detectmisstatements on a timely basis A significant deficiency is a control deficiency or combination of controldeficiencies that adversely affects the Countys ability to initiate authorize record process or reportfinancial data reliably in accordance with generally accepted accounting principles such that there is morethan a remote likelihood that a misstatement of the Countys financial statements that is more thaninconsequential will not be prevented or detected by the Countys internal control

A material weakness is a significant deficiency or combination of significant deficiencies that results inmore than a remote likelihood that a material misstatement of the financial statements will not beprevented or detected by the Countysinternal control



Honorable County Judge and Membersof the Commissioners Court


Our consideration of internal control over financial reporting was for the limited purpose described in thefirst paragraph of this section and would not necessarily identify all deficiencies in internal control thatmight be significant deficiencies or material weaknesses We did not identify any deficiencies in internalcontrol over financial reporting that we consider to be material weaknesses as defined above

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Countys financial statements are free ofmaterial misstatement we performed tests of its compliance with certain provisions of laws regulationscontracts and grant agreements noncompliance with which could have a direct and material effect on thedetermination of financial statement amounts However providing an opinion on compliance with thoseprovisions was not an objective of our audit and accordingly we do not express such an opinion Theresults of our tests disclosed no instances on noncompliance or other matters that are required to bereported under Government Auditing Standards

This report is intended solely for the information and use of the County Judge and members ofCommissioners Court management and federal and state awarding agencies and is not intended to beand should not be used by anyone other than these specified parties

June 11 2010

153

HARRISON WALDROP UHEREKLLP

HWUCERTIFIED PUBLIC ACCOUNTANTS

101 S MAIN SUITE 400

VICTORIA TEXAS 77901 81 42

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TOEACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER

COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A133



Compliance

STEPHEN WVAN MANEN CPA

HAMILTON H REDMON CPADENNIS C CIHAL CPA

ERIC L KUCERA CPACLAYTON PVAN PELT CPA

ROBERT W SCHAAR CPAMELISSA M TERRY CPA

VOICE 361 5733255FAX 361 5739531

We have audited the compliance of the County of Victoria Texas the County with the types ofcompliance requirements described in the U S Office of Management and Budget OMB Circular A 133Compliance Supplement and the State of Texas Single Audit Circular that are applicable to each of itsmajor federal and state programs for the year ended December 31 2009 The Countys major federaland state programs are identified in the summary of auditors results section of the accompanyingschedule of findings and questioned costs Compliance with the requirements of laws regulationscontracts and grants applicable to each of its major federal and state programs is the responsibility of theCountysmanagement Our responsibility is to express an opinion on the Countyscompliance based onour audit

We conducted our audit of compliance in accordance with auditing standards generally accepted in theUnited States of America the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States OMB Circular A133 Audits of StatesLocal Governments and Non Profit Organizations and the State of Texas Single Audit Circular Thosestandards the OMB Circular A133 and the State of Texas Single Audit Circular require that we plan andperform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major federaland state program occurred An audit includes examining on a test basis evidence about the Countyscompliance with those requirements and performing such other procedures as we considered necessaryin the circumstances We believe that our audit provides a reasonable basis for our opinion Our auditdoes not provide a legal determination on the Countys compliance with those requirements

In our opinion the County complied in all material respects with the requirements referred to above thatare applicable to each of its major federal and state programs for the year ended December 31 2009

Internal Control Over Compliance

The management of the County is responsible for establishing and maintaining effective internal controlover compliance with requirements of laws regulations contracts and grants applicable to federal andstate programs In planning and performing our audit we considered the Countys internal control overcompliance with requirements that could have a direct and material effect on a major federal and stateprogram in order to determine our auditing procedures for the purpose of expressing an opinion oncompliance but not for the purpose of expressing an opinion on the effectiveness of internal control overcompliance Accordingly we do not express an opinion on the effectiveness of the Countys internalcontrol over compliance y





A control deficiency in an entitysinternal control over compliance exists when the design or operation of acontrol does not allow management or employees in the normal course of performing their assignedfunctions to prevent or detect noncompliance with a type of compliance requirement of a federal or stateprogram on a timely basis A significant deficiency is a control deficiency or combination of controldeficiencies that adversely affects the entitys ability to administer a federal or state program such thatthere is more than remote likelihood that noncompliance with a type of compliance requirement of afederal or state program that is more than inconsequential will not be prevented or detected by the entitysinternal control

A material weakness is a significant deficiency or combination of significant deficiencies that results inmore than a remote likelihood that material noncompliance with a type of compliance requirement of afederal or state program will not be prevented or detected by the entitys internal control

Our consideration of the internal control over compliance was for the limited purpose described in the firstparagraph of this section and would not necessarily identify all deficiencies in internal control that might besignificant deficiencies or material weaknesses We did not identify any deficiencies in internal controlover compliance that we consider to be material weaknesses as defined above

This report is intended solely for the information and use of the County Judge and members ofCommissioners Court management and federal and state awarding agencies and is not intended to beand should not be used by anyone other than these specified parties

QuA44June 11 2010

155

COUNTY OF VICTORIA TEXASSCHEDULE OF EXPENDITURES OF FEDERAL AND STATE A WARDSFor the year ended December 31 2009

Federal

CFDA

Federal GrantorPass Through GrantorProgram Title Number

Agency orPass through

Number Expenditures

FEDERAL EXPENDITURES

U S Department of TransportationAirport Improvement Grant 20106 34802192109 825097

825097

Passed Through the Texas Department of TransportationClickItTicket 20600 588XXF5073 4320

Total Texas Department of Transportation 4320

Total US Department of Transportation 829417

U S Department of Homeland SecurityPassed Through the Transportation Security Administration

Airport Law Enforcement Personnel Program 97090 HSTS0208HSLR354 10728

Passed Through the GovernorsDivision of Emergency

7758

Management

Victims Coordinator Liason Grant

State Homeland Security Program 97073 2008GET80034 5444State Homeland Security Program 97073 2007GET7 0024 3296Law Enforcement Terrorism Prevention Program 97074 2007GE T7 0024 163053Hazard Mitigation Grant 97039 FEMA 1709DR 79579Hazard Mitigation Grant 97039 FEMA 1620DR 17693Hazard Mitigation Grant 97039 FEMA 1624DR 2250Hazard Mitigation Grant 97039 FEMA 1791 DR 199972Emergency Management Performance Grant 97042 109TXEMPG 10366Emergency Management Performance Grant 97042 09TXEMPG0605 31098

Total GovernorsDivision of Emergency Management 512751

Total US Department of Homeland Security 523479

U S Department of Justice

Bulletproof Vest Partnership Program 16607 NA 7758

7758

Passed Through the Office of Governorof Texas Criminal Justice DivisionVictims Coordinator Liason Grant 16575 802017 20136Victims Coordinator Liason Grant 16575 1014570 16692Victims Coordinator Liason Grant 16575 802025 5173Victims Coordinator Liason Grant 16575 1014588 15940

Total Office of Governor of Texas Criminal Justice Division 57941

Total US Department of Justice 65699

continued

156

COUNTY OF VICTORIA TEXASSCHEDULE OF EXPENDITURES OF FEDERAL AND STATEAWARDS


Federal

CFDA


FEDERAL EXPENDITURES Continued

U S Department of AgriculturePassed Through Texas Department of State Health Services

Special Supplemental Nutrition Program for WomenInfants and Children

Special Supplemental Nutrition Program for WomenInfants and Children

Total Texas Department of State Health Services

Passed Through Texas Department of Health and HumanServices Commission

School Breakfast ProgramSchool Breakfast ProgramNational School Lunch Program

Cash Assistance

Cash Assistance

NonCash Assistance CommoditiesTotal Texas Department of Health and Human ServicesCommission


Number

10557 2009 029987

10557 2010 033290

10553 TX2352009

10553 TX2352010

10555 TX2352009

10555 TX2352010

10555 NA

Expenditures

615018

226879

841897

1420115169

25687279111835

84804

Total US Department of Agriculture 926700

U S Department of Health and Human ServicesPassed Through Texas Department ofState Health Services

HIV Prevention Activities Health Department Based 93940 2008 023833 144

Biotterrorism Preparedness 93283 2008 028005 43846Biotterrorism Preparedness 93283 2010 032714 23520Immunization Grant 93268 2010 031695 63629Immunization Grant 93268 2009 028463 115041Immunization Grant 93268 2008 023773 8927RLSS LPHS 93991 2009 028146 99152RLSSLPHS 93991 2010032875 51531

Total Texas Department of State Health Services 405790

Passed Through Alamo Area Development CorporationRyan White Part B State Services 20082009 93917 NA 45031Ryan White Part B State Services 20092010 93917 NA 24865Ryan White Part B Service Delivery 20082009 93917 NA 70862Ryan White Part B Service Delivery 20092010 93917 NA 165854

Total Alamo Area Development Corporation 306612

continued

157

COUNTY OF VICTORIA TEXASSCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS


Federal

CFDA


FEDERAL EXPENDITURES Continued

U S Department of Health and Human Services ContinuedPassed Through Texas Department of Family and Protective

Services

Title ME Legal Services 93658

Total Texas Department of Family and Protective Services

Total US Department of Health and Human Services

U S Department of Housing and Urban DevelopmentPassed Through Office of Rural and Community Affairs


Number

23358151

Expenditures

53547

53547

765949

Texas Community Development Block Grant Program 14228 725881 5416

Texas Community Development Block Grant Program 14228 728217 217968

Total Office of Rural and Community Affairs 223384

Passed Through Texas Department of Health in Bexar CountyHOPWA 20072008 14241 20092010VCCHD 66157HOPWA 20082009 14241 20082009VCCHD 1841

Total Texas Department of Health in Bexar County 67998

Total US Department of Housing and Urban Development 291382

TOTAL FEDERAL EXPENDITURES 3402626

STATE EXPENDITURES

Texas Department of State Health ServicesZoonosis Control NA 2009 028521 21250DiabetesComm Diabetes Services NA 2009 027844 48022DiabetesComm Diabetes Services NA 2010 031844 24820

94092

Passed Through Southwest Texas Regional Advisory CouncilPublic Health Preparedness NA NA 11906

Total Texas Department of State Health Services 105998

continued

158

COUNTY OF VICTORIA TEXASSCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS


Federal

CFDA


STATE EXPENDITURES Continued

Texas Juvenile Probation Commission

Diversionary Placement FundState Aid

State Aid

Commitment Reduction ProgramProgressive Santions JPOProgressive Santions JPOProgressive Santions 123 ProgramIntensive Community Based ProgramIntensive Community Based ProgramCommunity Corrections Assistance ProgramCommunity Corrections Assistance ProgramSalary AdjustmentSalary Adjustment

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA


Number

Grant H

TJPCA2009235

TJPCA2010235

TJPCC 2010235

TJPCF2009235

TJPCF2010235TJPCG2009235

TJPCX2009235

TJPCX2010235

TJPCY2009235

TJPCY2010235

TJPCZ2009235

TJPCZ2010235

Expenditures

80069555505243451100548943921017854343008031

128906920755984042750

717013

NA 908772 3880NA 1013002 17925

21805

89492

158198LBSP08027

1092506

Total Texas Juvenile Probation Commission

Office of the Attorney General of TexasTexas Vine Grant

Texas Vine Grant

Total Office of the Attorney General of Texas

Texas Task Force on Indigent DefenseIndigent Defense NA NA

Texas Department of Public SafetyPassed Through GovernorsDivision of Emergency Management

Local Border Security Program FY08 NA

TOTAL STATE EXPENDITURES

TOTAL FEDERAL AND STATE EXPENDITURES

See accompanying notes to schedule of expenditures of federal and state awards

4495133

159

COUNTY OF VICTORIA TEXASNOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS


NOTE 1 BASIS OF PRESENTATION

The accompanying schedule of expenditures of federal and state awards includes the federal andstate grant activity of the County and is presented on a statutory basis of accounting The informationin this schedule is presented in accordance with the requirements of OMB Circular A133 Audits ofStates Local Governments and Non Profit Organizations Therefore some amounts presented inthis schedule may differ from amounts presented in or used in the preparation of the financialstatements

160

COUNTY OF VICTORIA TEXASSCHEDULE OF FINDINGS AND QUESTIONED COSTSFor the year ended December 31 2009

Section I Summary ofAuditors Results

Financial Statements

Type of auditors report issued Unqualified

Internal control over financial reportingMaterial weaknessesidentified yes no

Significant deficiencyiesidentifiedthat isare not considered to be

material weaknesses yes none reported

Noncompliance material to financialstatements noted yes no

Federal Awards

Internal control over major programsMaterial weaknessesidentified yes no

Significant deficiencyiesidentifiedthat isare not considered to bematerial weaknesses yes none reported

Type of auditors report issued on compliance for major programs Unqualified

Any audit findings disclosed that arerequired to be reported in accordancewith Section 510aof Circular A133 yes no

Identification of major programs

CFDA Numbers Name of Federal Program or Cluster20 6 Airportlmprovement Grant10 55 Special Supplemental Nutrition Program for Women

Infants and ChildrenNA Texas Juvenile Probation Commission 2009 2010235

Dollar threshold used to distinguishbetween type A and type B programs 300000

Auditee qualified as lowrisk auditee yes no

Section II Financial Statement Findings

None noted

Section III Federal Award Findings and Questioned Costs

None noted

161

COUNTY OF VICTORIA TEXASSCHEDULE OF PRIOR AUDIT FINDINGS


None were reported

162

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