dial-in number: (800) 250-2600 passcode: 197 9056 -...

Tuesday, June 10, 2014 Board of Directors Teleconference Meeting

2:00 p.m. - 4:00 p.m.

Dial-in Number: (800) 250-2600

Passcode: 197 9056

*For those participating by telephone, please mute your line when not speaking.

1) Introduction a) Welcome/Roll Call b) Additions to Agenda

2) Consent Items 2:15 p.m.

a) Approval of minutes from April 24, 2014 b) Financials as of April 2014 and May 2014

3) Discussion/Action Items 2:30 p.m.

a) 2013 Financial Audit Ernie Reyna b) Report on 2014 Annual Conference Janet Salvetti c) Chapter Support Recommendation Pamela Arends-King d) Direction on Merchant Fees in Financial Reports Ernie Reyna e) Weekend Training Scott Catlett

4) Officer Reports

a) President 3:00 p.m. Pamela Arends-King a. CSMFO Reception at GFOA

b) Past President 3:10 p.m. Pauline Marx

a. Chapter Chair Liaison Report

c) President-Elect 3:20 p.m. Jesse Takahashi a. 2015 Annual Conference Update b. 2014 Strategic Planning Session Update

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5) Board Liaison/Committee Oral Reports 3:30 p.m. a) Administration Ernie Reyna b) Career Development Scott Catlett c) Conference Site Selection Josh Betta d) Membership Benefits Steve Heide e) Professional Standards & Recognition Ken Brown f) Program Viki Copeland

g) Technology Rick Teichert 6) League Policy Committee 3:45 p.m. a) Administrative Services Stuart Schillinger b) Community Services Irina Kumits c) Employee Relations Robert Harmon

d) Environmental Quality Thom Venegoni e) Housing, Community & Economic Development David Glasser f) Public Safety Lorinda Odell g) Revenue & Taxation Bob Biery

h) Transportation, Communications & Public Works Robin Borre i) Ad Hoc CalPERS Brent Mason

7) Other Items 8) Future Topics 9) Next Meeting 10) Adjournment 4:00 p.m.

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California Society of Municipal Finance Officers Board of Directors Meeting Minutes

April 24, 2014

In Attendance

Pamela Arends-King Jesse Takahashi Margaret Moggia Drew Corbett Joan Michaels Aguilar Barbara Boswell Marcus Pimentel Steve Heide Will Fuentes Ken Brown

Scott Catlett Lorinda Odell Ernie Reyna Christy Pinuelas John Adams Robin Borre Laura Nomura Janet Salvetti Melissa Dixon

The California Society of Municipal Finance Officers (CSMFO) Board of Directors met via teleconference on Thursday, April 24, 2014. President Pamela Arends-King convened the meeting at 2:03 p.m. and confirmed a quorum was in attendance. The Board addressed the consent calendar. Director Margaret Moggia moved to approve the consent calendar; Director Joan Michaels Aguilar seconded. The motion passed unanimously. Conference Coordinator Janet Salvetti provided the Board with a preliminary financial report on the 2014 Annual Conference, noting the event had an estimated net income of $115,000. Registrations totaled 878. There were 87 exhibitors, including 27 exhibitors new to CSMFO. It was also noted that, as the Board has requested, a portion of the SMA contract was recorded in the conference budget. President Arends-King guided the Board through a review of the 2014 Action Plan, with updates from the respective committees. President Arends-King provided an update on the CSMFO reception being held at the GFOA conference in Minneapolis in May, noting that it was difficult to stay within the $3,000 budget. Director Drew Corbett moved to increase the budget for this event to $5,000; Director Margaret Moggia seconded. The motion passed unanimously. Executive Director Melissa Dixon reported on behalf of Past President Pauline Marx, noting that the first Chapter Chair conference call took place on April 14. There were nine people on the call, including a mix of chapter chairs and Board members. President-Elect Jesse Takahashi informed the Board that he has been working on establishing his Annual Conference Host Committee, which is currently planning its first meeting for May. He is also considering logistics for the September Planning Session.

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Administration Committee Chair Ernie Reyna informed the Board that the committee is discussing the reciprocal relationship CSMFO has regarding conferences with CMTA and the associations from Washington, Alaska and Oregon. The committee is working toward creating policies on how to process new conference partnership requests. Career Development Committee Chair Scott Catlett noted that the webinar calendar for the rest of the year had been finalized, including several topics first seen at the 2014 Annual Conference, as requested by the membership. The committee is looking at collaborating with MISAC and CSDA as well. Membership Committee Chair Steve Heide noted conference booth materials need to be reordered, folded that into committee objectives for the year. Professional Standards and Recognition Committee Chair Ken Brown informed the Board that the committee had its first meeting in April. League Transportation, Communications and Public Works Policy Committee representative Robin Borre submitted her report to the Board in writing via email. League Revenue and Taxation Policy Committee representative Bob Biery was not present, but had submitted a report in advance to Executive Director Dixon reporting that the ad hoc group formed to study SB 983 (Card Lock Fuel Systems) met, but any action was deferred to the June meeting of the full Revenue and Taxation Policy Committee. The next meeting will be held via teleconference on May 22 from 2:00 to 4:00 p.m. President Arends-King adjourned the meeting at 3:27 p.m. Respectfully submitted, Melissa Dixon Executive Director

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California Society of Municipal Finance Officers Statement of Net Assets

As of April 30, 2014

April 30, 2014 April 30, 2013 $ Change % Change

ASSETS

Current Assets

Checking/Savings

1005 · Bank of America 558,589.62 542,664.87 15,924.75 2.94%

1040 · Investments LAIF 277,285.12 276,602.17 682.95 0.25%

Total Checking/Savings 835,874.74 819,267.04 16,607.70 2.03%

Accounts Receivable

1100 · Accounts receivable 3,574.45 3,100.00 474.45 15.31%

Total Accounts Receivable 3,574.45 3,100.00 474.45 15.31%

Other Current Assets

1099 · Miscellaneous Receivable 392.50 0.00 392.50 100.0%

1080 · Undeposited Funds 13,235.00 1,520.00 11,715.00 770.72%

1250 · Prepaid Expense - General

1252 · Prepaid Admin Fees 8,646.20 0.00 8,646.20 100.0%

Total 1250 · Prepaid Expense - General 8,646.20 0.00 8,646.20 100.0%

1260 · Prepaid Expense Conference

1264 · Conference Services 247.50 2,856.52 (2,609.02) (91.34%)

1260 · Prepaid Expense Conference - Other 0.00 2,663.00 (2,663.00) (100.0%)

Total 1260 · Prepaid Expense Conference 247.50 5,519.52 (5,272.02) (95.52%)

Total Other Current Assets 22,521.20 7,039.52 15,481.68 219.93%

Total Current Assets 861,970.39 829,406.56 32,563.83 3.93%

TOTAL ASSETS 861,970.39 829,406.56 32,563.83 3.93%

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable

2000 · Accounts payable 20,511.45 135,921.49 (115,410.04) (84.91%)

Total Accounts Payable 20,511.45 135,921.49 (115,410.04) (84.91%)

Other Current Liabilities

2001 · Taxes Due 0.00 2,928.01 (2,928.01) (100.0%)

2005 · Distinguished Service Awards 1,500.00 0.00 1,500.00 100.0%

Total Other Current Liabilities 1,500.00 2,928.01 (1,428.01) (48.77%)

Total Current Liabilities 22,011.45 138,849.50 (116,838.05) (84.15%)

Total Liabilities 22,011.45 138,849.50 (116,838.05) (84.15%)

Equity

3020 · Retained earnings 554,237.75 420,249.98 133,987.77 31.88%

Net Income 285,721.19 270,307.08 15,414.11 5.7%

Total Equity 839,958.94 690,557.06 149,401.88 21.64%

TOTAL LIABILITIES & EQUITY 861,970.39 829,406.56 32,563.83 3.93%

NET ASSETS TEST

841,453.40 (1,494.46)

839,958.94 839,958.94

-

Previous Month Net Assets

Current Revenues over Expenditures

New Net Assets

Current Statement of Net Assets

Variance

Page 1 of 45

California Society of Municipal Finance Officers Statement of Activities

April 2014

Apr 2014 Jan - Apr 2014 YTD Budget $ Over Budget % of Budget Annual Budget Jan - Apr 14 Jan - Apr 13 $ Change % Change

OPERATING REVENUES

4100 · Membership Dues 3,615.00 191,015.00 195,960.00 (4,945.00) 97.48% 195,960.00 191,015.00 191,920.00 (905.00) (0.47%)

4200 · Interest Income 157.52 157.52 250.00 (92.48) 63.01% 750.00 157.52 192.48 (34.96) (18.16%)

4302 · Website Mini-News Ads 6,900.00 36,640.00 30,235.00 6,405.00 121.18% 90,705.00 36,640.00 32,181.25 4,458.75 13.86%

4306 · Web Advertising 0.00 1,950.00 0.00 1,950.00 100.0% 0.00 1,950.00 1,200.00 750.00 62.5%

4470 · Miscellanous Income 0.00 0.00 0.00 0.00 0.0% 0.00 0.00 0.00 0.00 0.0%

4490 · Budget/CAFR Fees 0.00 450.00 0.00 450.00 100.0% 18,500.00 450.00 200.00 250.00 125.0%

TOTAL OPERATING REVENUES 10,672.52 230,212.52 226,445.00 3,767.52 101.66% 305,915.00 230,212.52 225,693.73 4,518.79 2.0%

OPERATING EXPENSES

6255 · GFOA Reception 0.00 0.00 0.00 0.00 0.0% 5,000.00 0.00 0.00 0.00 0.0%

6106 · Storage Expense 0.00 40.72 0.00 40.72 100.0% 0.00 40.72 17.53 23.19 132.29%

6110 · President's Expense 100.00 100.00 1,833.36 (1,733.36) 5.45% 5,500.00 100.00 1,951.01 (1,851.01) (94.87%)

6115 · Board of Directors 0.00 30.37 866.64 (836.27) 3.5% 2,600.00 30.37 624.00 (593.63) (95.13%)

6120 · Committee Support 0.00 1,163.50 1,666.64 (503.14) 69.81% 5,000.00 1,163.50 1,261.77 (98.27) (7.79%)

6125 · Board Planning Session-Retreat 0.00 0.00 0.00 0.00 0.0% 28,000.00 0.00 0.00 0.00 0.0%

6140 · Management Services 10,797.64 36,736.30 37,318.25 (581.95) 98.44% 111,954.65 36,736.30 44,669.47 (7,933.17) (17.76%)

6150 · Office Supplies 0.00 12.83 133.36 (120.53) 9.62% 400.00 12.83 0.00 12.83 100.0%

6155 · Merchant Fees/Bank Chgs. 873.52 10,569.12 6,166.64 4,402.48 171.39% 18,500.00 10,569.12 8,225.32 2,343.80 28.5%

6160 · Awards 0.00 107.96 166.64 (58.68) 64.79% 500.00 107.96 456.19 (348.23) (76.33%)

6165 · Printing 8,141.00 9,710.45 4,000.00 5,710.45 242.76% 12,000.00 9,710.45 11,281.84 (1,571.39) (13.93%)

6175 · Postage 1,227.29 2,246.79 1,500.00 746.79 149.79% 4,500.00 2,246.79 2,301.04 (54.25) (2.36%)

6180 · Equipment Lease/Rental 0.00 0.00 1,200.00 (1,200.00) 0.0% 3,600.00 0.00 1,720.00 (1,720.00) (100.0%)

6185 · Telephone/Bridge Calls 228.71 651.79 1,050.00 (398.21) 62.08% 3,150.00 651.79 697.15 (45.36) (6.51%)

6190 · Web and Technology 750.00 5,500.00 6,000.00 (500.00) 91.67% 18,000.00 5,500.00 5,500.00 0.00 0.0%

6200 · Travel 0.00 0.00 166.64 (166.64) 0.0% 500.00 0.00 217.23 (217.23) (100.0%)

6220 · Audit & Tax Filing 0.00 0.00 3,166.64 (3,166.64) 0.0% 9,500.00 0.00 0.00 0.00 0.0%

6230 · Insurance 0.00 1,953.00 833.36 1,119.64 234.35% 2,500.00 1,953.00 500.00 1,453.00 290.6%

6240 · Taxes 3,550.00 3,550.00 5,333.36 (1,783.36) 66.56% 16,000.00 3,550.00 0.00 3,550.00 100.0%

6250 · Miscellaneous 0.00 0.00 0.00 0.00 0.0% 0.00 0.00 21.75 (21.75) (100.0%)

TOTAL OPERATING EXPENSES 25,668.16 72,372.83 71,401.53 971.30 101.36% 247,204.65 72,372.83 79,444.30 (7,071.47) (8.9%)

NET OPERATING REVENUES (14,995.64) 157,839.69 155,043.47 2,796.22 101.8% 58,710.35 157,839.69 146,249.43 11,590.26 7.93%

Page 2 of 46


April 2014

Apr 2014 Jan - Apr 2014 YTD Budget $ Over Budget % of Budget Annual Budget Jan - Apr 14 Jan - Apr 13 $ Change % Change

PROGRAM REVENUES

4503 · Contributions and Donations 10,000.00 10,000.00 15,000.00 (5,000.00) 66.67% 15,000.00 10,000.00 10,000.00 0.00 0.0%

4505 · Webinar 425.00 600.00 1,000.00 (400.00) 60.0% 3,000.00 600.00 475.00 125.00 26.32%

4520 · Weekend Training 0.00 0.00 0.00 0.00 0.0% 12,375.00 0.00 0.00 0.00 0.0%

4570 · Intro to Government 2,325.00 2,700.00 5,333.36 (2,633.36) 50.63% 16,000.00 2,700.00 6,600.00 (3,900.00) (59.09%)

4580 · Presentation/Fiscal Policy 3,000.00 3,000.00 4,400.00 (1,400.00) 68.18% 13,200.00 3,000.00 7,900.00 (4,900.00) (62.03%)

4590 · Intermediate Government Acct 5,550.00 18,900.00 12,000.00 6,900.00 157.5% 36,000.00 18,900.00 0.00 18,900.00 100.0%

4594 · CMTA/CSMFO Course (2,625.00) 2,625.00 0.00 2,625.00 100.0% 14,500.00 2,625.00 0.00 2,625.00 100.0%

TOTAL PROGRAM REVENUES 18,675.00 37,825.00 37,733.36 91.64 100.24% 110,075.00 37,825.00 24,975.00 12,850.00 51.45%

PROGRAM EXPENSES

6594 · CMTA/CSMFO Course Exp 2,298.80 2,298.80 0.00 2,298.80 100.0% 0.00 2,298.80 0.00 2,298.80 100.0%

6415 · CRA Collaboration 0.00 0.00 14,000.00 (14,000.00) 0.0% 14,000.00 0.00 0.00 0.00 0.0%

6420 · Weekend Trainings 0.00 0.00 0.00 0.00 0.0% 15,000.00 0.00 0.00 0.00 0.0%

6430 · Intro to Government 311.69 311.69 4,266.64 (3,954.95) 7.31% 12,800.00 311.69 1,013.03 (701.34) (69.23%)

6450 · Presentation/Fiscal Policy 0.00 0.00 4,500.00 (4,500.00) 0.0% 13,500.00 0.00 3,395.17 (3,395.17) (100.0%)

6470 · Coaching Program Consultant 0.00 12,725.75 26,700.00 (13,974.25) 47.66% 80,100.00 12,725.75 12,025.00 700.75 5.83%

6480 · Intermediate Governmental Acct. 3,643.33 11,311.77 10,800.00 511.77 104.74% 32,400.00 11,311.77 0.00 11,311.77 100.0%

TOTAL PROGRAM EXPENSES 6,253.82 26,648.01 60,266.64 (33,618.63) 44.22% 167,800.00 26,648.01 16,433.20 10,214.81 62.16%

NET PROGRAM REVENUES 12,421.18 11,176.99 (22,533.28) 33,710.27 (49.6%) (57,725.00) 11,176.99 8,541.80 2,635.19 30.85%

TOTAL CONFERENCE REVENUE 1,080.00 631,555.00 557,860.00 73,695.00 113.21% 557,860.00 631,555.00 558,430.00 73,125.00 13.1%

TOTAL CONFERENCE EXPENSES 0.00 514,850.49 541,322.00 (26,471.51) 95.11% 541,322.00 514,850.49 442,914.15 71,936.34 16.24%

NET CONFERENCE REVENUE 1,080.00 116,704.51 16,538.00 100,166.51 705.68% 16,538.00 116,704.51 115,515.85 1,188.66 1.03%

NET REVENUE (1,494.46) 285,721.19 149,048.19 136,673.00 191.7% 17,523.35 285,721.19 270,307.08 15,414.11 5.7%

Page 3 of 47


As of March 31, 2014

Management & General Fund Comments:

Management Services (Acct. 6140) is lower this year compared to last due to Board's request to allocate a portion of these fees to the Conference Budget.

Merchant Fees (Acct. 6155) is higher this year than last due to a substantial increase in Conference Revenue.

Insurance Expense (Acct. 6230) is much higher at this point this year compared to last because we paid the annual Flex Premium in Feb. 2014, as opposed to reimbursing SMA for this expense in July 2013.

Program Services Fund Comments:

Significant YTD Variances on Expenses:

Unless noted below, YTD budget amounts = 1/12th of the annual budget amount multiplied by the number of months reported:1

Annual Conference - YTD budget amount = 100% as of February 1 because event is held in February.2

Board Planning Session - YTD budget amount = 100% as of October because the event is held in October.3

Budget/CAFR fees - YTD budget amount = 0% through July 31; 33% as of August 31; 67% as of September 30; and 100% as of October 314

Communication skills - YTD budget amount = 0% through September 30; 50% as of October 31; then 100% as of November 305

Legislative seminar - YTD budget amount = 100% as of May 31 because event is held in May6

Membership dues - YTD budget amount = 100% as of January 31 because they are considered earned7

State meeting (fiscal summit) - YTD budget amount = 100% as of May 31 because event is held in May8

Weekend training - YTD budget amount = 0% through September 30; 50% as of October 31; then 100% as of November 309

Audit - YTD budget amount = 100% as of May 31 because audit is completed in April and billed in May10

Topical training (WebEx) - YTD budget amount = 25% through March 31; 50% through June 30; 75% through September 30; then 100% as of October 31

Statement of Activities

Budget Variance Report

For The Month Ended March 31, 2014

Management Discussion and Analysis

Added Distinguised Service Awards to the Balance Sheet. $500 reserved for Receipients for 3 years from Award. Three receipients currently booked: Michael Coleman, Irwin Bornstein, and Bill Statler.

Miscellaneous Receivable (Acct. 1099) of $392.50 is for double reimbursement payment made to Teri Anticevich, in error, for the piano rental deposit. She has been notified and will reimburse.

Page 4 of 48


As of May 31, 2014

May 31, 2014 May 31, 2013 $ Change % Change

ASSETS

Current Assets

Checking/Savings

1005 · Bank of America 570,481.18 404,983.46 165,497.72 40.87%

1040 · Investments LAIF 277,285.12 276,602.17 682.95 0.25%

Total Checking/Savings 847,766.30 681,585.63 166,180.67 24.38%

Accounts Receivable

1100 · Accounts receivable 4,618.53 2,562.65 2,055.88 80.23%

Total Accounts Receivable 4,618.53 2,562.65 2,055.88 80.23%

Other Current Assets

1099 · Miscellaneous Receivable 0.00 0.00 0.00 0.0%

1080 · Undeposited Funds 0.00 735.00 (735.00) (100.0%)

1250 · Prepaid Expense - General

1252 · Prepaid Admin Fees 8,646.20 0.00 8,646.20 100.0%

Total 1250 · Prepaid Expense - General 8,646.20 0.00 8,646.20 100.0%

1260 · Prepaid Expense Conference

1262 · Facilities Deposits 15,460.00 0.00 15,460.00 100.0%

1264 · Conference Services 247.50 3,570.65 (3,323.15) (93.07%)

1260 · Prepaid Expense Conference - Other 0.00 2,715.08 (2,715.08) (100.0%)

Total 1260 · Prepaid Expense Conference 15,707.50 6,285.73 9,421.77 149.89%

Total Other Current Assets 24,353.70 7,020.73 17,332.97 246.88%

Total Current Assets 876,738.53 691,169.01 185,569.52 26.85%

TOTAL ASSETS 876,738.53 691,169.01 185,569.52 26.85%

LIABILITIES & EQUITY

Liabilities

Current Liabilities

Accounts Payable

2000 · Accounts payable 33,330.70 0.00 33,330.70 100.0%

Total Accounts Payable 33,330.70 0.00 33,330.70 100.0%

Other Current Liabilities

2001 · Taxes Due 3,041.00 0.00 3,041.00 100.0%

2005 · Distinguished Service Awards 1,500.00 0.00 1,500.00 100.0%

Total Other Current Liabilities 4,541.00 0.00 4,541.00 100.0%

Total Current Liabilities 37,871.70 0.00 37,871.70 100.0%

Total Liabilities 37,871.70 0.00 37,871.70 100.0%

Equity

3020 · Retained earnings 562,236.67 420,249.98 141,986.69 33.79%

Net Income 276,630.16 270,919.03 5,711.13 2.11%

Total Equity 838,866.83 691,169.01 147,697.82 21.37%

TOTAL LIABILITIES & EQUITY 876,738.53 691,169.01 185,569.52 26.85%

NET ASSETS TEST

839,958.94 908.97

Net Effect of Adjusting Journal Entries from 2013 Audit 7,998.92 Reversal of 2013 Audit AJE#4 in 2014 (10,000.00)

838,866.83 838,866.83

-

Previous Month Net Assets

Current Revenues over Expenditures

New Net Assets

Current Statement of Net Assets

Variance

Page 1 of 49


May 2014

May 2014 Jan - May 2014 YTD Budget $ Over Budget % of Budget Annual Budget Jan - May 2014 Jan - May 2013 $ Change % Change

OPERATING REVENUES

4100 · Membership Dues 1,950.00 192,965.00 195,960.00 (2,995.00) 98.47% 195,960.00 192,965.00 192,875.00 90.00 0.05%

4200 · Interest Income 0.00 157.52 312.50 (154.98) 50.41% 750.00 157.52 192.48 (34.96) (18.16%)

4302 · Website Mini-News Ads 7,340.00 43,980.00 37,793.75 6,186.25 116.37% 90,705.00 43,980.00 40,106.25 3,873.75 9.66%

4306 · Web Advertising 2,220.00 4,170.00 4,170.00 1,650.00 2,520.00 152.73%

4470 · Miscellanous Income 0.00 0.00 0.00 0.00 0.00 0.0%

4490 · Budget/CAFR Fees 0.00 450.00 0.00 450.00 100.0% 18,500.00 450.00 200.00 250.00 125.0%

TOTAL OPERATING REVENUES 11,510.00 241,722.52 234,066.25 7,656.27 103.27% 305,915.00 241,722.52 235,023.73 6,698.79 2.85%

OPERATING EXPENSES

6106 · Storage Expense 23.86 64.58 0.00 64.58 100.0% 0.00 64.58 64.29 0.29 0.45%

6110 · President's Expense 0.00 100.00 2,291.69 (2,191.69) 4.36% 5,500.00 100.00 2,378.25 (2,278.25) (95.8%)

6115 · Board of Directors 0.00 30.37 1,083.31 (1,052.94) 2.8% 2,600.00 30.37 624.00 (593.63) (95.13%)

6120 · Committee Support 0.00 1,163.50 2,083.31 (919.81) 55.85% 5,000.00 1,163.50 3,144.46 (1,980.96) (63.0%)

6125 · Board Planning Session-Retreat 0.00 0.00 0.00 0.00 0.0% 28,000.00 0.00 0.00 0.00 0.0%

6140 · Management Services 8,646.22 45,382.52 46,647.80 (1,265.28) 97.29% 111,954.65 45,382.52 55,328.03 (9,945.51) (17.98%)

6150 · Office Supplies 43.38 56.21 166.69 (110.48) 33.72% 400.00 56.21 0.00 56.21 100.0%

6155 · Merchant Fees/Bank Chgs. 612.06 11,181.18 7,708.31 3,472.87 145.05% 18,500.00 11,181.18 8,685.89 2,495.29 28.73%

6160 · Awards 108.39 216.35 208.31 8.04 103.86% 500.00 216.35 456.19 (239.84) (52.58%)

6165 · Printing 0.00 9,710.45 5,000.00 4,710.45 194.21% 12,000.00 9,710.45 11,309.28 (1,598.83) (14.14%)

6175 · Postage 74.60 2,321.39 1,875.00 446.39 123.81% 4,500.00 2,321.39 2,390.33 (68.94) (2.88%)

6180 · Equipment Lease/Rental 0.00 0.00 1,500.00 (1,500.00) 0.0% 3,600.00 0.00 2,150.00 (2,150.00) (100.0%)

6185 · Telephone/Bridge Calls 376.81 1,028.60 1,312.50 (283.90) 78.37% 3,150.00 1,028.60 1,055.20 (26.60) (2.52%)

6190 · Web and Technology 1,549.00 7,049.00 7,500.00 (451.00) 93.99% 18,000.00 7,049.00 6,250.00 799.00 12.78%

6200 · Travel 0.00 0.00 208.31 (208.31) 0.0% 500.00 0.00 221.31 (221.31) (100.0%)

6220 · Audit & Tax Filing 6,000.00 6,000.00 3,958.31 2,041.69 151.58% 9,500.00 6,000.00 6,000.00 0.00 0.0%

6230 · Insurance 0.00 1,953.00 1,041.69 911.31 187.48% 2,500.00 1,953.00 500.00 1,453.00 290.6%

6240 · Taxes 0.00 3,550.00 6,666.69 (3,116.69) 53.25% 16,000.00 3,550.00 887.99 2,662.01 299.78%

6250 · Miscellaneous 0.00 0.00 0.00 0.00 0.0% 0.00 0.00 21.75 (21.75) (100.0%)

6999 · Previous Year Adjustment 0.00 0.00 0.00 0.00 0.0% 0.00 0.00 810.00 (810.00) (100.0%)

TOTAL OPERATING EXPENSES 17,434.32 89,807.15 89,251.92 555.23 100.62% 242,204.65 89,807.15 102,276.97 (12,469.82) (12.19%)

NET OPERATING REVENUES (5,924.32) 151,915.37 144,814.33 7,101.04 104.9% 63,710.35 151,915.37 132,746.76 19,168.61 14.44%

Page 2 of 410


May 2014

May 2014 Jan - May 2014 YTD Budget $ Over Budget % of Budget Annual Budget Jan - May 2014 Jan - May 2013 $ Change % Change

PROGRAM REVENUES

4503 · Contributions and Donations 0.00 10,000.00 15,000.00 (5,000.00) 66.67% 15,000.00 10,000.00 10,000.00 0.00 0.0%

4505 · Webinar 650.00 1,250.00 1,250.00 0.00 100.0% 3,000.00 1,250.00 575.00 675.00 117.39%

4520 · Weekend Training 0.00 0.00 0.00 0.00 0.0% 12,375.00 0.00 0.00 0.00 0.0%

4570 · Intro to Government 1,125.00 3,825.00 6,666.69 (2,841.69) 57.38% 16,000.00 3,825.00 12,100.00 (8,275.00) (68.39%)

4580 · Presentation/Fiscal Policy 0.00 3,000.00 5,500.00 (2,500.00) 54.55% 13,200.00 3,000.00 8,600.00 (5,600.00) (65.12%)

4590 · Intermediate Government Acct 4,800.00 23,700.00 15,000.00 8,700.00 158.0% 36,000.00 23,700.00 3,450.00 20,250.00 586.96%

4594 · CMTA/CSMFO Course 0.00 2,625.00 0.00 2,625.00 100.0% 14,500.00 2,625.00 0.00 2,625.00 100.0%

TOTAL PROGRAM REVENUES 6,575.00 44,400.00 43,416.69 983.31 102.27% 110,075.00 44,400.00 34,725.00 9,675.00 27.86%

PROGRAM EXPENSES

6255 · GFOA Reception 3,489.75 3,489.75 5,000.00 (1,510.25) 69.8% 5,000.00 3,489.75 0.00 3,489.75 100.0%

6594 · CMTA/CSMFO Course Exp 0.00 2,298.80 0.00 2,298.80 100.0% 0.00 2,298.80 0.00 2,298.80 100.0%

6415 · CRA Collaboration 0.00 0.00 14,000.00 (14,000.00) 0.0% 14,000.00 0.00 0.00 0.00 0.0%

6420 · Weekend Trainings 0.00 0.00 0.00 0.00 0.0% 15,000.00 0.00 0.00 0.00 0.0%

6430 · Intro to Government 0.00 311.69 5,333.31 (5,021.62) 5.84% 12,800.00 311.69 1,688.77 (1,377.08) (81.54%)

6450 · Presentation/Fiscal Policy 0.00 0.00 5,625.00 (5,625.00) 0.0% 13,500.00 0.00 5,476.57 (5,476.57) (100.0%)

6470 · Coaching Program Consultant 0.00 12,725.75 33,375.00 (20,649.25) 38.13% 80,100.00 12,725.75 12,025.00 700.75 5.83%

6480 · Intermediate Governmental Acct. 3,849.91 15,161.68 13,500.00 1,661.68 112.31% 32,400.00 15,161.68 0.00 15,161.68 100.0%

TOTAL PROGRAM EXPENSES 7,339.66 33,987.67 76,833.31 (42,845.64) 44.24% 172,800.00 33,987.67 19,190.34 14,797.33 77.11%

NET PROGRAM REVENUES (764.66) 10,412.33 (33,416.62) 43,828.95 (31.16%) (62,725.00) 10,412.33 15,534.66 (5,122.33) (32.97%)

TOTAL CONFERENCE REVENUE 7,825.00 629,380.00 557,860.00 71,520.00 112.82% 557,860.00 629,380.00 558,440.00 70,940.00 12.7%

TOTAL CONFERENCE EXPENSES 227.05 515,077.54 541,322.00 (26,244.46) 95.15% 541,322.00 515,077.54 435,802.39 79,275.15 18.19%

NET CONFERENCE REVENUE 7,597.95 114,302.46 16,538.00 97,764.46 691.15% 16,538.00 114,302.46 122,637.61 (8,335.15) (6.8%)

NET REVENUE 908.97 276,630.16 127,935.71 148,694.45 216.23% 17,523.35 276,630.16 270,919.03 5,711.13 2.11%

Page 3 of 411


As of March 31, 2014

Management & General Fund Comments:

Management Services (Acct. 6140) is lower this year compared to last due to Board's request to allocate a portion of these fees to the Conference Budget.

Merchant Fees (Acct. 6155) is higher this year than last due to a substantial increase in Conference Revenue.

Insurance Expense (Acct. 6230) is much higher at this point this year compared to last because we paid the annual Flex Premium in Feb. 2014, as opposed to reimbursing SMA for this expense in July 2013.

Program Services Fund Comments:

Significant YTD Variances on Expenses:

Unless noted below, YTD budget amounts = 1/12th of the annual budget amount multiplied by the number of months reported:1

Annual Conference - YTD budget amount = 100% as of February 1 because event is held in February.2

Board Planning Session - YTD budget amount = 100% as of October because the event is held in October.3

Budget/CAFR fees - YTD budget amount = 0% through July 31; 33% as of August 31; 67% as of September 30; and 100% as of October 314

Communication skills - YTD budget amount = 0% through September 30; 50% as of October 31; then 100% as of November 305

Legislative seminar - YTD budget amount = 100% as of May 31 because event is held in May6

Membership dues - YTD budget amount = 100% as of January 31 because they are considered earned7

State meeting (fiscal summit) - YTD budget amount = 100% as of May 31 because event is held in May8

Weekend training - YTD budget amount = 0% through September 30; 50% as of October 31; then 100% as of November 309

Audit - YTD budget amount = 100% as of May 31 because audit is completed in April and billed in May10

Topical training (WebEx) - YTD budget amount = 25% through March 31; 50% through June 30; 75% through September 30; then 100% as of October 31

Statement of Activities

Budget Variance Report

For The Month Ended May 31, 2014

Management Discussion and Analysis

Added Distinguised Service Awards to the Balance Sheet. $500 reserved for Receipients for 3 years from Award. Three receipients currently booked: Michael Coleman, Irwin Bornstein, and Bill Statler.

Page 4 of 412

CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS

AUDIT PRESENTATION AGENDA

June 10, 2014

Presentation by Richardson & Company of the Audit, including the following communications required by Generally Accepted Auditing Standards:

Reports issued Audited Financial Statements with auditors opinion Required communications letter Management letter with findings and recommendations

Independent Auditor’s Report Amounts reported are the responsibility of management Auditor’s responsibility Financial statements prepared on behalf of CSMFO Unmodified (clean) opinion

Discussion of financial statements

Statements of Financial Position (page 3) Statement of Activities (page 4) Commitment disclosure (pages 8 and 9) Supplemental schedule—historical data (page 10)

Required Communications letter Accounting estimates—income tax accrual Audit adjustments One adjustment to accrue income taxes Unadjusted differences--none noted No difficulties in performing the audit and no unusual accounting practices

Management letter No material weaknesses in internal control Other item noted

Reconciliation of conference, member dues and workshop revenues from database to the general ledger

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Audited Financial Statements

December 31, 2013

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INDEPENDENT AUDITOR’S REPORT

Board of Directors California Society of Municipal Finance Officers Sacramento, California

We have audited the accompanying statements of financial position of the California Society of Municipal Finance Officers (CSMFO) as of December 31, 2013 and 2012 and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

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Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CSMFO as of December 31, 2013 and 2012, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matter

Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplemental schedule on page 10 is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole.

June 3, 2014

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2013 2012

ASSETSCash and investments 882,676$ 731,611$ Accounts and accrued interest receivable 3,347 3,089Prepaid expenses 25,864 26,974

TOTAL ASSETS 911,887$ 761,674$

LIABILITIES AND NET ASSETS

LIABILITIESAccounts payable and other liabilities 32,304$ 16,034$ Unrelated business income taxes payable 3,041 2,928 Deferred revenue 314,305 322,461

TOTAL LIABILITIES 349,650 341,423

NET ASSETSUnrestricted 562,237 420,251

TOTAL NET ASSETS 562,237 420,251

TOTAL LIABILITIES AND NET ASSETS 911,887$ 761,674$

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


STATEMENTS OF FINANCIAL POSITION

December 31, 2013 and 2012

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2013 2012

REVENUE AND SUPPORTAnnual seminar 557,240$ 586,881$ Membership dues 199,930 181,335 Publication advertising 97,471 79,262 Education workshops 95,016 38,821 Scholarship contributions 10,000 10,000 Award fee 15,600 16,205 Interest 718 974

TOTAL REVENUE AND SUPPORT 975,975 913,478 EXPENSES

Program services:Annual seminar 436,180 487,339 Education workshops 80,741 28,838 Consultants 62,200 55,191 Technology initiatives 13,383 11,455

Total program services 592,504 582,823Supporting services:

Management services 127,903 124,625Board and committee meetings 29,940 26,907Bank charges 19,665 14,809Printing 11,453 9,905 Miscellaneous 9,285 9,304Audit and tax 8,932 9,470GFOA reception 6,254 President expenses 3,635 4,351Postage and shipping 3,265 4,576Insurance 2,094 2,260Bad debt expense 810 200

Total supporting services 223,236 206,407 TOTAL EXPENSES 815,740 789,230

INCREASE IN UNRESTRICTED NET ASSETS 160,235 124,248

Provision for income taxes on unrelated business income 18,249 12,646 CHANGE IN NET ASSETS 141,986 111,602

Net assets at beginning of year 420,251 308,649

NET ASSETS AT END OF YEAR 562,237$ 420,251$



STATEMENTS OF ACTIVITIES


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2013 2012

CASH FLOWS FROM OPERATIONSChange in net assets 141,986$ 111,602$ Adjustments to reconcile changes in net assets to net cash provided by operating activities:

Bad debt expense 610 200 Changes in assets and liabilities:

Accounts and accrued interest receivable (868) 11,412 Prepaid expenses 1,110 (9,004) Accounts payable and other liabilities 16,270 (5,186) Unrelated business income taxes payable 113 2,639 Deferred revenue (8,156) (17,685)

NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 151,065 93,978

Cash and cash equivalents at beginning of year 731,611 637,633

CASH AND CASH EQUIVALENTS AT END OF YEAR 882,676$ 731,611$

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid for taxes 18,136$ 15,173$



STATEMENTS OF CASH FLOWS


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NOTE A – SIGNIFICANT ACCOUNTING POLICIES

The California Society of Municipal Finance Officers (CSMFO) was formed as a California nonprofit mutual benefit corporation to promote professional administration of municipal finance and to strive for the attainment of professional status of all those responsible for the conduct of the activities of the field. The programs of CSMFO comprise:

Annual Seminar – CSMFO holds one seminar a year for their members to discuss issues affecting city finance officers.

Education Workshops – Education workshops are held during the year to benefit the members of CSMFO.

Scholarship – CSMFO collects contributions from its members for a scholarship award program to give assistance to local government finance officers to attend training seminars.

Technology Initiatives – CSMFO maintains a website which offers government finance professionals sample technical resources, links and references. A group e-mail service is also available to members to exchange information and survey other professionals on financial practices.

Basis of Presentation: The financial statements of CSMFO are prepared in conformity with generally accepted accounting principles. Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its FASB ASC 958, Financial Statements of Not-for-Profit Organizations. Under FASB ASC 958, the CSMFO is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. CSMFO has no permanently and temporarily restricted net assets.

Cash and Investments: Investments are stated at cost which approximates fair value. CSMFO invests its available cash through the Local Agency Investment Fund. Cash held in the Local Agency Investment Fund as of December 31, 2013 and 2012 was $276,949 and $276,186, respectively.

Deferred Revenue: CSMFO recorded deferred revenue relating to membership dues and seminar registration fees received prior to December 31, 2013 and 2012 for the next fiscal year.

Revenue and Support: Revenue is derived primarily from membership dues, seminars, workshops and advertising sales. Revenue derived from membership dues are recognized over the period to which the dues relate. Seminar and workshop revenue is recognized in the period in which the event takes place. Advertising sales revenue is recognized over the period to which the ads relate.

Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets depending on the nature of the restriction.

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NOTE A – SIGNIFICANT ACCOUNTING POLICIES (Continued)

Income Taxes: CSMFO is a tax-exempt organization under Section 501(c) (6) of the Internal Revenue Code and Section 23701e of the California Revenue and Taxation Code and, therefore, is subject to federal and state income taxes only on unrelated business income earned. There was $97,471 and $79,262 in unrelated business income from advertising during the years ended December 31, 2013 and 2012, respectively. For the year ended December 31, 2013, CSMFO estimated $10,848 for federal income taxes and $6,393 for state income taxes on unrelated business income. For the year ended December 31, 2012, CSMFO estimated federal income taxes of $8,232 and state income taxes of $4,868 on unrelated business income.

In March 2012, CSMFO amended its 2008 federal and state income tax returns in order to deduct expenses related to unrelated business income activities that were previously not deducted. As a result, CSMFO received a refund of $2,060 plus interest for the 2008 amended federal income tax return and CSMFO received a refund of $1,222 plus interest for the 2008 amended state income tax return. In addition, during 2012, CSMFO received a state tax refund for $2,073 for an overpayment of 2010 taxes. These refunds were offset by additional amounts owed for 2011 taxes of $5,274.

In 2010, CSMFO made an estimated tax payment to the state that was not included on the original tax return. As a result, during 2012 CSMFO received a state tax refund for $2,073 for an overpayment of 2010 taxes.

CSMFO’s federal returns for the years ended December 31, 2012, 2011, and 2010 could be subject to examination by federal taxing authorities, generally for three years after they are filed. CSMFO’s state returns for the years ended December 31, 2012, 2011, 2010, and 2009 could be subject to examination by state taxing authorities, generally for four years after they are filed.

Cash and Cash Equivalents: For purposes of presentation in the Statement of Cash Flows, CSMFO considers all highly liquid investments with maturities of three months or less to be cash equivalents.

Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Subsequent Events: CSMFO evaluated all events or transactions that occurred after December 31, 2013 and up to June 2, 2014, the date the financial statements were issued. During this time, CSMFO did not have any recognizable or unrecognizable subsequent events.

NOTE B – RELATED PARTY TRANSACTIONS

CSMFO has chapters and sections throughout the State that maintain their own accounting records and elect their own officers who manage their operations and determine local program activities. Their bank accounts and activity therein is not part of CSMFO’s financial statements because CSMFO does not have the ability to determine the direction of the management and policies.

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NOTE C – CONCENTRATIONS

A substantial portion of CSMFO’s revenues are obtained from its members, which consist of municipal finance officers and persons whose livelihood is derived from activities related to municipal finance in the State of California. Dues revenue received from these members comprised 21% and 20% of CSMFO’s total revenues for 2013 and 2012, respectively. A majority of the Annual Seminar revenue, which comprises 57% and 64% of CSMFO’s total revenues for 2013 and 2012, respectively, is also obtained from its members.

At December 31, 2013 and 2012, the carrying amounts of CSMFO’s deposits were $571,242 and $438,640, and the balances in a financial institution were $614,759 and $419,787, respectively. The balances maintained in the financial institution are insured by the Federal Deposit Insurance Corporation up to $250,000 at December 31, 2013. At December 31, 2013 and 2012, CSMFO’s uninsured cash balance totaled $364,759 and $169,787, respectively.

NOTE D – COMMITMENTS

In December 2011, CSMFO entered into a three-year agreement with SMA beginning on January 1, 2013, whereby SMA agrees to perform professional services on behalf of CSMFO. SMA incurred expenses of $127,903 related to 2013 services and $124,625 for 2012 services. For 2014, SMA will not exceed the 2012 base rate of $132,975 adjusted annually for CPI not to exceed 4%. In addition, SMA will receive $50 per registered exhibitor and $8.50 per sponsor/exhibitor attendee.

In December 2012, CSMFO entered into a three-year agreement with Don Maruska and Company (DMC) beginning on January 1, 2013, whereby DMC agrees to facilitate CSMFO’s coaching program. DMC will receive compensation of $49,303 and $50,536 for 2014 and 2015, respectively.

In December 2012, CSMFO entered into a three-year agreement with Coleman Advisory Services (CAS) beginning on January 1, 2013, whereby CAS agrees to provide training and consulting services. CAS will receive compensation, including expenses, of $7,800 and $8,000 for 2014 and 2015, respectively.

In 2012, CSMFO entered into agreements with the Palm Springs Convention Center (PSCC) and the Renaissance Palm Springs Hotel (RPSH) for the 2014 annual conference. The agreement with the PSCC for catering and facilities includes a cancellation policy that obligates CSMFO to pay a minimum of $29,171 for cancelling more than 31 days prior to the event, and up to $64,515 for failing to cancel less than 72 hours prior to the event. The agreement with the RPSH for room rentals, banquet charges and a contracted block of rooms includes a cancellation policy that obligates CSMFO to pay a minimum of $36,362 for cancelling more than 180 days prior to the event, and up to $145,448 for cancelling less than 30 days prior to the event.

In 2013, CSMFO entered into agreement with the Portola Hotel and Spa (PHS) for the 2015 annual conference. The agreement with the PHS for catering, facilities and rooms includes a cancellation policy that obligates CSMFO to pay a minimum of $72,253 for cancelling prior to February 27, 2014, and up to $145,929 for cancelling after September 30, 2014.

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NOTE D – COMMITMENTS (Continued)

In 2013, CSMFO entered into agreement with Disneyland Hotel (DH) for the 2016 annual conference. The agreement with the DH for catering, facilities and rooms includes a cancellation policy that obligates CSMFO to pay a minimum of $142,258 for cancelling between 366 and 730 days prior to the event, and up to $254,264 for failing to cancel less than 90 days prior to the event.

23

SUPPLEMENTAL SCHEDULE

24

2013 2012 2011 2010 2009

REVENUE AND SUPPORTAnnual seminar 557,240$ 586,881$ 462,370$ 532,710$ 511,595$ Membership dues 199,930 181,335 177,225 181,315 190,540 Publication advertising 97,471 79,262 59,490 51,330 54,492 Education workshops 95,016 38,821 35,345 27,250 48,050 Award fee 15,600 16,205 19,900 15,600 14,658 Scholarship contributions 10,000 10,000 10,100 Interest 718 974 1,197 1,421 3,718 Legislative seminar 8,029 6,465 7,615 Miscellaneous 108 1,962 3,763

TOTAL REVENUE AND SUPPORT 975,975 913,478 773,764 818,053 834,431 EXPENSES

Program services:Annual seminar 436,180 487,339 389,088 422,714 593,044 Consultants 62,200 55,191 55,234 53,577 35,900 Education workshops 80,741 28,838 29,494 29,922 50,010 Technology initiatives 13,383 11,455 12,147 43,611 21,336

Total program services 592,504 582,823 485,963 549,824 700,290 Supporting services:

Management services 127,903 124,625 122,534 121,506 121,753 Board and committee meetings 29,940 26,907 28,293 27,895 39,371 Bank charges 19,665 14,809 13,671 13,740 26,815 Printing 11,453 9,905 9,814 11,242 12,058 Miscellaneous 9,285 9,304 9,281 8,798 10,431 Audit and tax 8,932 9,470 8,496 9,572 11,975 GFOA reception 6,254 Postage and shipping 3,265 4,576 6,918 5,653 5,306 President expenses 3,635 4,351 2,997 3,252 3,450 Insurance 2,094 2,260 2,400 2,430 1,808 Bad debt expense 810 200 21,248Donations 63 50,000

Total supporting services 223,236 206,407 204,467 275,336 232,967 TOTAL EXPENSES 815,740 789,230 690,430 825,160 933,257

INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS 160,235 124,248 83,334 (7,107) (98,826)

Provision for income taxes on unrelated business income 18,249 12,646 3,936 (2,797) 14,303 CHANGE IN NET ASSETS 141,986 111,602 79,398 (4,310) (113,129)

Net assets at beginning of year 420,251 308,649 229,251 233,561 346,690

NET ASSETS AT END OF YEAR 562,237$ 420,251$ 308,649$ 229,251$ 233,561$



SUPPLEMENTAL SCHEDULE OF ACTIVITIES

December 31, 2013, 2012, 2011, 2010 and 2009

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We have audited the financial statements of the California Society of Municipal Finance Officers (CSMFO) for the year ended December 31, 2013, and have issued our report thereon dated June 3, 2014. Professional standards require that we provide you with the following information about our responsibility under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit.

Our Responsibility under U.S. Generally Accepted Auditing Standards

As stated in our engagement letter dated May 23, 2013, our responsibility, as described by professional standards, is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.

In planning and performing our audit, we considered CSMFO’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting.

Planned Scope and Timing of the Audit

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involved judgment about the number of transactions to be examined and the areas to be tested.

Our audit included obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We noted no material weaknesses in internal control as a result of our audit.

We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter dated May 23, 2013.

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Significant Audit Findings

Qualitative Aspects of Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by CSMFO are described in Note A to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2013. We noted no transactions entered into by CSMFO during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements is the amount of taxes owed on unrelated business income. We evaluated the key factors and assumptions used to develop the estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The accrual for unrelated business income tax is based on a preliminary calculation of taxable income for 2013 until the actual tax return is filed.

The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements

Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. One audit adjustment was noted during our audit: the entry to accrue income taxes on unrelated business income. Management has corrected all such misstatements

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations

We have requested certain representations from management that are included in the management representation letter dated June 3, 2014.

Management Consultations with Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to CSMFO’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the

27

consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues

We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as CSMFO’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

This information is intended solely for the use of the Board of Directors and management of CSMFO and is not intended to be and should not be used by anyone other than these specified parties.

June 3, 2014

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In planning and performing our audit of the financial statements of California Society of Municipal Finance Officers (CSMFO) for the year ended December 31, 2013, in accordance with auditing standards generally accepted in the United States of America, we considered CSMFO’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of CSMFO’s internal control. Accordingly, we do not express an opinion on the effectiveness of CSMFO’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis.

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

The following suggestion is provided for your consideration:

Membership, Conference and Education Workshop Revenues

During our audit, we noted that CSMFO tracks member dues, education workshop attendees and conference attendees/sponsors/exhibitors in a database. Using information included in the database, CSMFO performs reconciliations to the general ledger for the membership dues and education workshop revenues during the preparation of the annual budget for subsequent years, which occurs after the audit is performed, so the 2013 reconciliations have not yet been completed. We recommend that CSMFO perform these reconciliations during the year-end close prior to the start of the audit. In addition, we recommend that these reconciliations include the conference attendees/sponsors/exhibitors to ensure proper revenue recognition.

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* * * * *

This communication is intended solely for the information and use of management, the Board of Directors and others within the organization and is not intended to be and should not be used by anyone other than these specified parties.

June 3, 2014

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1

CSMFO BOARD REPORT FROM: Teri Anticevich & Janet Salvetti, M&AMS, Inc. SUBJECT: 2014 CONFERENCE UPDATE At the April Board meeting we reported on the initial results of the 2014 CSMFO Annual Conference. We indicated that we would bring back the final results at the next meeting of the Board. This report should be taken in conjunction with the last report as a total representation of the results of the conference. To recap, the 54th CSMFO Annual Conference, Playing the Next Round, was held February 19 – February 21, 2014 in Palm Springs, CA. The Conference was chaired by Pamela Arends-King, 2014 CSMFO President. She chose as her committee a seasoned group of CSMFO members, most of whom have participated on a host committee in the past. Many thanks are extended to the committee for their knowledge of CSMFO, conference dynamics and their overall stay-on-target planning skills. CONFERENCE REPORT The number of registered and attending for the past 3 conferences is reflected below:

Location Year Number Reg. (Paid) Number AttendingLos Angeles 2010 NA 674 Burlingame 2011 NA 638 Anaheim 2012 909 883 Oakland 2013 823 789 Palm Springs 2014 878 849

It certainly is good to see the attendance coming back and we look forward to reaching 1,000 attendees! With all good news there are some caveats; the largest one here is that these attendance numbers almost guarantee that we will be using convention facilities into the future. With this comes additional fees for

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using a conference facility. However, our revenues are adequately supporting this change. Based on the committee debriefing after the conference as well as online surveys, the following items stand out as positives:

1. New conference schedule with preconference training and events on Tuesday.

2. Fuller version of the mobile application. The application was downloaded by 415 attendees.

3. Website 4. Thursday evening offered more locations for networking. 5. Longer exhibitor hours received great reviews, with several staying and

attending sessions after the hall closed. There were also items that need improvement. Reported here are those that may require some input from the Board. Other logistical items are being forwarded to the 2015 host committee for their consideration. If the Board is interested in a full listing, we are happy to provide. Needs improvement:

1. Food quality and service. The most glaring “needs improvement” that we take away from the 2014 conference is the quality of the food and the timeliness of our food service. Both at the conference and after, we had discussions with hotel management on their need to remedy this situation. Although they offered several possible reasons for the food experience they acknowledged that it was definitely their burden to bear. The settlement was a $10,000 credit on our food and beverages expenses with the hotel with an offer of an additional $10,000 if the conference returns to this site in 2018.

2. Program content posted earlier to the website, including dates that the sessions will be offered. In conjunction, notifying speakers of their session date and time earlier so they can coordinate their calendar and travel arrangements.

Another “needs improvement” item is the online registration process. Although it appears to be easy enough for the user, we at SMA and M&AMS are experiencing line-item balancing difficulty due to the database's restrictions on where/how things are coded when we do the imports. In addition, we budget in the revenue categories in significant detail which makes maintenance more difficult. We are confident in the amount of revenue and the detail line-item reporting of all the exhibitor and sponsorship monies as well as all of the expenditure reporting. However, the line item revenue detail in the individual attendee line items as well as miscellaneous revenue should be reviewed by category total.

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FINANCIAL RESULTS At this time we feel confident to report that the 2014 Annual Conference netted $114,000. The committee chose to budget a realistic number of 780 for attendance. The actual registered attendance (which includes individuals that paid but were not in attendance) was 878. No single item stands out as the primary reason for the successful financial outcome for this conference, however a few are worth highlighting:

• We went out for proposals for the audio visual service this year and determined that a change from the provider that we have used for years would net a significant savings. Not only did we save over $20,000, the provider also worked with us extremely well and reduced their pricing when we made a reduction in our needs.

• The committee felt that WiFi access for the attendees while at the conference had a high importance. At the time the budget was prepared we used the amount that was quoted to provide the service to both the conference facility as well as the hotel meeting space. In subsequent discussions WiFi was provided only in the convention center for a significant savings.

• Due to us contracting with the hotel’s preferred provider for audio visual, several expenses we normally incur were less expensive. Two such expenses were security and electrical rigging.

• Also, thanks to the dedication of John Adams, Danielle Woods and Mark Alvarado the golf tournament netted almost $7,000.

SUMMARY Once again it has been a pleasure to serve CSMFO as your conference coordinators. We would like to thank the Board of Directors, the Host Committee led by Pamela Arends-King and SMA for their commitment to making the 2014 Annual Conference such a success. We look forward to another successful year as we move to Monterey for the 2015 Annual Conference.

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06/03/14 Accrual Basis California Society of Municipal Finance Officers

Profit & Loss Budget vs. Actual January 1 through June 3, 2014

Jan 1 - Jun 3, 14 Budget $ Over Budget % of Budget

Other Income/Expense

Other Income

8000 · Conference Revenue

8100 · Government Registrations

8105 · Conf-Gov-Full-Early-Non 9,860.00 4,850.00 5,010.00 203.3%

8106 · Conf-Gov-Full-Norm-Non 3,210.00 5,350.00 (2,140.00) 60.0%

8108 · Conf-Gov-Daily-Early-Non 1,040.00 3,900.00 (2,860.00) 26.67%

8109 · Conf-Gov-Daily-Norm-Non 1,035.00 2,850.00 (1,815.00) 36.32%

8110 · Conf-Gov-Full-Early-Mem 113,250.00 105,000.00 8,250.00 107.86%

8115 · Conf-Gov-Full-Norm-Mem 25,615.00 26,000.00 (385.00) 98.52%

8116 · Govt Member-Full Reg Late 0.00 0.00 0.00 0.0%

8120 · Conf-Gov-Daily-Early-Mem 1,140.00 3,000.00 (1,860.00) 38.0%

8125 · Conf-Gov-Daily-Norm-Mem 1,505.00 0.00 1,505.00 100.0%

8150 · Conf-Gov-Full-OnSite-Non 1,220.00 0.00 1,220.00 100.0%

8155 · Conf-Gov-Full-OnSite-Mem 3,000.00 1,425.00 1,575.00 210.53%

8100 · Government Registrations - Other 0.00 0.00 0.00 0.0%

Total 8100 · Government Registrations 160,875.00 152,375.00 8,500.00 105.58%

8200 · Commercial Registrations

8225 · Conf-Com-Exhibitor-Addn 53,625.00 24,000.00 29,625.00 223.44%

8230 · Conf-Com-Full-Early-Non 12,205.00 8,520.00 3,685.00 143.25%

8231 · Conf-Com-Full-Norm-Non 8,710.00 6,280.00 2,430.00 138.69%

8235 · Conf-Com-Full-Early-Mem 17,510.00 45,000.00 (27,490.00) 38.91%

8236 · Conf-Com-Full-Norm-Mem 8,100.00 3,375.00 4,725.00 240.0%

8240 · Conference Full-Normal 0.00 0.00 0.00 0.0%

8245 · Conf-Com-Daily-Early-Mem 8,250.00 2,625.00 5,625.00 314.29%

8250 · Conf-Com-Daily-Norm-Mem 1,700.00 1,275.00 425.00 133.33%

8260 · Conf-Com-Daily-Early-Non 1,290.00 4,300.00 (3,010.00) 30.0%

8265 · Conf-Com-Daily-Norm-Non 2,880.00 960.00 1,920.00 300.0%

8200 · Commercial Registrations - Other 0.00 0.00 0.00 0.0%

Page 1 of 8 34




Total 8200 · Commercial Registrations 114,270.00 96,335.00 17,935.00 118.62%

8300 · Pre-Conference Registrations

Conference PreConf-SessionA 0.00 0.00 0.00 0.0%

8371 · PreConference-SessionA 4,850.00 2,000.00 2,850.00 242.5%

8373 · PreConference-Session B 0.00 2,000.00 (2,000.00) 0.0%

8375 · PreConference-Other 200.00 0.00 200.00 100.0%

8300 · Pre-Conference Registrations - Other 0.00 0.00 0.00 0.0%

Total 8300 · Pre-Conference Registrations 5,050.00 4,000.00 1,050.00 126.25%

8400 · Spouse/Guest Fees (Full Conf) 0.00 0.00 0.00 0.0%

8465 · Board Scholarhips 0.00 0.00 0.00 0.0%

8500 · Extra Meals

8560 · Wed - Fri (indiv meal tickets) 0.00 0.00 0.00 0.0%

8565 · Banquet 1,000.00 1,250.00 (250.00) 80.0%

8500 · Extra Meals - Other 0.00 0.00 0.00 0.0%

Total 8500 · Extra Meals 1,000.00 1,250.00 (250.00) 80.0%

8600 · Event Registrations

8610 · Golf 16,860.00 0.00 16,860.00 100.0%

8620 · Tours 0.00 0.00 0.00 0.0%

8630 · Tennis 525.00 0.00 525.00 100.0%

8640 · Other 0.00 0.00 0.00 0.0%

8600 · Event Registrations - Other 0.00 0.00 0.00 0.0%

Total 8600 · Event Registrations 17,385.00 0.00 17,385.00 100.0%

8700 · Exhibitors Fees

8705 · Platinum Package 48,000.00 42,000.00 6,000.00 114.29%

8706 · Platinum Package + Sponsorship 0.00 0.00 0.00 0.0%

8715 · Gold Package 49,500.00 49,500.00 0.00 100.0%

Page 2 of 8 35




8725 · Silver Package 141,000.00 108,000.00 33,000.00 130.56%

8735 · Diamond Package 30,000.00 40,000.00 (10,000.00) 75.0%

8736 · Diamond Package + Sponsorship 12,000.00 0.00 12,000.00 100.0%

8740 · Bronze Package 29,200.00 32,400.00 (3,200.00) 90.12%

8790 · Exhibitor Late Pmt. Fee-All Lev 0.00 0.00 0.00 0.0%

8700 · Exhibitors Fees - Other 0.00 0.00 0.00 0.0%

Total 8700 · Exhibitors Fees 309,700.00 271,900.00 37,800.00 113.9%

8800 · Sponsorships

8835 · Non-Booth Diamond 0.00 0.00 0.00 0.0%

8840 · Non-Booth Platinum 5,000.00 5,000.00 0.00 100.0%

8850 · Non-Booth Gold 0.00 7,000.00 (7,000.00) 0.0%

8860 · Non-Booth Silver 2,000.00 6,000.00 (4,000.00) 33.33%

8870 · President's Dinner Sponsorship 10,000.00 10,000.00 0.00 100.0%

8872 · Additional Sponsorship Monies 4,000.00 4,000.00 0.00 100.0%

8880 · Daily Sponsor Registration 0.00 0.00 0.00 0.0%

8800 · Sponsorships - Other 0.00 0.00 0.00 0.0%

Total 8800 · Sponsorships 21,000.00 32,000.00 (11,000.00) 65.63%

8900 · Conference Miscellaneous

8905 · Misc Conference Income 100.00 0.00 100.00 100.0%

8900 · Conference Miscellaneous - Other 0.00 0.00 0.00 0.0%

Total 8900 · Conference Miscellaneous 100.00 0.00 100.00 100.0%

8000 · Conference Revenue - Other 0.00 0.00 0.00 0.0%

Total 8000 · Conference Revenue 629,380.00 557,860.00 71,520.00 112.82%

Total Other Income 629,380.00 557,860.00 71,520.00 112.82%

Other Expense

Page 3 of 8 36




9000 · Confererence Expenses

9100 · Food & Beverage

9105 · Tuesday-Lunch-Volunteers 897.62 875.00 22.62 102.59%

9110 · Tuesday-Lunch-Board Meeting 921.59 1,505.00 (583.41) 61.24%

9125 · Wednesday-Lunch 26,994.94 23,400.00 3,594.94 115.36%

9130 · Wednesday-PM Break/Dessert 8,146.85 9,500.00 (1,353.15) 85.76%

9135 · Wednesday-Food-Exhibitor Recept 9,877.09 11,000.00 (1,122.91) 89.79%

9138 · Wednesday-Beverage-Exhibitor Re 3,369.28 4,000.00 (630.72) 84.23%

9140 · Thursday-Breakfast-Chapter Chai 1,196.82 1,110.00 86.82 107.82%

9143 · Thursday-Breakfast 15,601.27 15,540.00 61.27 100.39%

9145 · Thursday-Coffee Service 2,769.69 3,000.00 (230.31) 92.32%

9147 · Thursday-Lunch 27,771.52 31,490.00 (3,718.48) 88.19%

9148 · Thursday-PM Break 9,583.79 9,000.00 583.79 106.49%

9150 · Friday-Breakfast 12,446.93 16,200.00 (3,753.07) 76.83%

9152 · Friday-Coffee Service (Coffee 0.00 1,600.00 (1,600.00) 0.0%

9155 · Friday-Lunch 11,604.53 14,400.00 (2,795.47) 80.59%

9170 · Staff Room Beverage Service 0.00 0.00 0.00 0.0%

9180 · Speaker Room Beverage Service 0.00 0.00 0.00 0.0%

9190 · Exhibit Hall Beverage Service 0.00 0.00 0.00 0.0%

9195 · Water for Sessions 0.00 0.00 0.00 0.0%

9197 · Food&Beverage-Other 0.00 0.00 0.00 0.0%

9100 · Food & Beverage - Other 339.10 0.00 339.10 100.0%

Total 9100 · Food & Beverage 131,521.02 142,620.00 (11,098.98) 92.22%

9200 · President's Dinners

9210 · Tues-Board-Presidents-Dinner 15,938.36 12,500.00 3,438.36 127.51%

9220 · Entertain-Transport-Decor-Favor 1,884.05 1,950.00 (65.95) 96.62%

9250 · Pres Dinner-Out of State Guest 184.58 1,380.00 (1,195.42) 13.38%

9200 · President's Dinners - Other 533.00 0.00 533.00 100.0%

Total 9200 · President's Dinners 18,539.99 15,830.00 2,709.99 117.12%

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9300 · Banquet

9310 · Thursday-Banquet-Music/Entertai 15,135.00 13,000.00 2,135.00 116.42%

9320 · Thursday-Banquet-Food/Bev 77,118.58 70,500.00 6,618.58 109.39%

9330 · Thursday-Banquet-Decorations 7,192.29 6,000.00 1,192.29 119.87%

9340 · Thursday-Banquet-Miscellaneous 2,312.91 1,500.00 812.91 154.19%

9300 · Banquet - Other 0.00 0.00 0.00 0.0%

Total 9300 · Banquet 101,758.78 91,000.00 10,758.78 111.82%

9400 · Speakers/Meetings/Scholarships

9410 · Speakers-Honorarium 31,300.00 35,000.00 (3,700.00) 89.43%

9420 · Speaker-Expenses-Lodging 3,071.08 3,142.00 (70.92) 97.74%

9430 · Speaker-Expenses-Transportation 3,440.21 3,000.00 440.21 114.67%

9440 · Speaker-Expenses-Meals/Reg 272.75 500.00 (227.25) 54.55%

9445 · Speaker-Expenses-Misc 1,157.01 0.00 1,157.01 100.0%

9400 · Speakers/Meetings/Scholarships - Other 0.00 0.00 0.00 0.0%

Total 9400 · Speakers/Meetings/Scholarships 39,241.05 41,642.00 (2,400.95) 94.23%

9450 · Comps

9460 · Other Guests Lodging (OOS) 2,305.05 3,142.00 (836.95) 73.36%

9465 · Board Scholarships 7,921.50 6,285.00 1,636.50 126.04%

9450 · Comps - Other 250.00 0.00 250.00 100.0%

Total 9450 · Comps 10,476.55 9,427.00 1,049.55 111.13%

9475 · Meetings

9476 · Audio Visual and Lighting 76,177.88 85,000.00 (8,822.12) 89.62%

9477 · Taping 0.00 0.00 0.00 0.0%

9478 · Opening Session/Color Guard 0.00 250.00 (250.00) 0.0%

9479 · WiFi Internet 3,000.00 16,000.00 (13,000.00) 18.75%

9480 · Electric Power/Rigging 0.00 8,500.00 (8,500.00) 0.0%

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9481 · Attendance Tracking/CPE 6,769.34 7,300.00 (530.66) 92.73%

9485 · Convention/Hotel Other Costs 9,558.27 12,815.00 (3,256.73) 74.59%

9475 · Meetings - Other 0.00 0.00 0.00 0.0%

Total 9475 · Meetings 95,505.49 129,865.00 (34,359.51) 73.54%

9490 · Pre-Conference Workshop

9494 · Food & Beverage 1,436.18 1,750.00 (313.82) 82.07%

9495 · Speaker Fees 0.00 500.00 (500.00) 0.0%

9496 · Pre-Conference-Other 735.71 500.00 235.71 147.14%

9490 · Pre-Conference Workshop - Other 0.00 0.00 0.00 0.0%

Total 9490 · Pre-Conference Workshop 2,171.89 2,750.00 (578.11) 78.98%

9500 · Exhibits

9510 · Decorator Booth Fee 8,392.00 9,485.00 (1,093.00) 88.48%

9520 · Signage-Exhibit Hall 0.00 800.00 (800.00) 0.0%

9530 · Emergency Medical (EMS) 0.00 0.00 0.00 0.0%

9540 · Security 334.80 2,875.00 (2,540.20) 11.65%

9542 · Hotel 0.00 0.00 0.00 0.0%

9545 · Miscellaneous 0.00 2,350.00 (2,350.00) 0.0%

9550 · Exhibits-Other 859.83 0.00 859.83 100.0%

9500 · Exhibits - Other 0.00 0.00 0.00 0.0%

Total 9500 · Exhibits 9,586.63 15,510.00 (5,923.37) 61.81%

9600 · Entertainment/Gifts

9610 · Conference Gifts/Attendees 11,810.24 14,400.00 (2,589.76) 82.02%

9620 · Speaker/Board/Committee Memento 2,278.35 2,650.00 (371.65) 85.98%

9630 · Gift Baskets (VIPs) 435.00 450.00 (15.00) 96.67%

9675 · Vendor Reception Entertainment 0.00 0.00 0.00 0.0%

9600 · Entertainment/Gifts - Other 0.00 0.00 0.00 0.0%

Total 9600 · Entertainment/Gifts 14,523.59 17,500.00 (2,976.41) 82.99%

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9700 · Event

9732 · Tournament Expenses 10,108.92 0.00 10,108.92 100.0%

9740 · Gifts 0.00 0.00 0.00 0.0%

9750 · Other Event Expenses 0.00 0.00 0.00 0.0%

9760 · Tours 0.00 0.00 0.00 0.0%

9799 · Miscellaneous 0.00 0.00 0.00 0.0%

9700 · Event - Other 0.00 0.00 0.00 0.0%

Total 9700 · Event 10,108.92 0.00 10,108.92 100.0%

9800 · Printing, Copying & Administrat

9805 · Conference Marketing 750.00 2,200.00 (1,450.00) 34.09%

9809 · DO NOT USE-SMA Contract 0.00 25,939.00 (25,939.00) 0.0%

9810 · Conference Contract Services 52,956.24 19,360.00 33,596.24 273.53%

9815 · Printing

9816 · Programs 0.00 11,240.00 (11,240.00) 0.0%

9817 · General 0.00 1,100.00 (1,100.00) 0.0%

9815 · Printing - Other 12,959.07 0.00 12,959.07 100.0%

Total 9815 · Printing 12,959.07 12,340.00 619.07 105.02%

9818 · Office/Telephones/Printer 261.47 500.00 (238.53) 52.29%

9820 · President Expenses 279.83 500.00 (220.17) 55.97%

9831 · Supplies-Badges-Ribbons-Etc 2,382.76 500.00 1,882.76 476.55%

9840 · Postage & Shipping 1,377.98 600.00 777.98 229.66%

9845 · Registration Packets 250.00 750.00 (500.00) 33.33%

9875 · Signage 397.22 850.00 (452.78) 46.73%

9890 · Conference Committee Expenses 6,214.48 8,525.00 (2,310.52) 72.9%

9895 · Staff Exp Inc. Lodging & Travel 3,814.58 3,114.00 700.58 122.5%

9800 · Printing, Copying & Administrat - Other 0.00 0.00 0.00 0.0%

Total 9800 · Printing, Copying & Administrat 81,643.63 75,178.00 6,465.63 108.6%

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9900 · Contingency for Attrition 0.00 0.00 0.00 0.0%

9000 · Confererence Expenses - Other 0.00 0.00 0.00 0.0%

Total 9000 · Confererence Expenses 515,077.54 541,322.00 (26,244.46) 95.15%

Total Other Expense 515,077.54 541,322.00 (26,244.46) 95.15%

Net Other Income 114,302.46 16,538.00 97,764.46 691.15%

Net Income 114,302.46 16,538.00 97,764.46 691.15%

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CSMFO BOARD REPORT Date June 10, 2014 FROM: Pamela Arends-King President and Chair, Chapter Support Task Force SUBJECT: Administrative Support for CSMFO Chapters Background: “Explore options to ease the administrative burden of chapter meeting registration/payment collections” was one of the items on the Action Plan for 2014. In pursuit of this goal, a Chapter Support Task Force was formed. The Task Force met in March 2014 and developed a scope of services that could be handled by administrative contract staff rather than by the chapter chairs themselves, including creating an online registration and payment process for chapter meetings, handling all chapter accounting at the organization’s headquarters and closing all individual chapter bank accounts. Melissa Dixon created a proposal from Smith Moore & Associates, which the Task Force reviewed and approved on May 6, 2014. Recommendation: Approve the proposal for administrative support for chapters as submitted by Smith Moore & Associates. Begin additional services July 1, 2014. Fiscal Impact: $7,492.50 in 2014 for July-December; 14,985 in 2015. Will reassess staff time/costs at the end of 2015, and adjust fees as necessary going forward. Attachment: Smith Moore & Associates Proposal for Additional Chapter Services

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1215 K Street, Suite 940 Sacramento, CA 95814

(916) 231‐2131 (916) 231‐2141 fax

TO: Ad Hoc Chapter Task Force California Society of Municipal Finance Officers FROM: Melissa Dixon, COO RE: Proposal for Additional Services DATE: April 7, 2014 The CSMFO Ad Hoc Chapter Task Force met on Monday, March 24, 2014 and identified a scope of services that seems appropriate for Smith Moore & Associates (SMA) than for chapter chairs. That scope is as follows:

Registration (lead: SMA) ‐Switch to online‐only through CSMFO website/database ‐Chapter chair provides info to SMA to post online/open registration ‐SMA provides attendee list to chapter chair one week prior to meeting in order to make final arrangements at venue ‐SMA processes any on‐site registrations and payments once chapter chair submits information on same to the office Accounting (lead: SMA) ‐Secure CSMFO credit card, for use by office only ‐Create separate income/expense line items for each chapter within the CSMFO operating budget, coding all income/expenses appropriately ‐Ensure appropriate chapter income account codes are used during registration set‐up ‐Contracts or forms for all venues should be routed through the CSMFO office ‐Venue deposit requests should be processed via check through CSMFO when possible, with the CSMFO credit card used to secure space or pay the balance on the day of the event ‐If deposit cannot be processed by check in advance, the CSMFO credit card may be used for the entire event ‐Chapter chairs must submit all receipts to the CSMFO office within one week of the event ‐Reconcile CSMFO credit card monthly ‐Maintain list of which chapters collaborate with CMTA, and reconcile CMTA’s share of profits(losses) at the end of the year, per the Board’s direction

43

CPE Certificates (lead: SMA) ‐Create CPE general (no names) certificate specific for each chapter meeting; email to chapter chair. Chapter chairs to print and distribute at meeting. ‐Maintain required documentation (sign in, presentation, etc.) for possible auditing purposes Administration (lead: SMA) ‐Assist chapter chairs in transition from existing processes to new ‐Send annual survey on chapter meetings to all members For purposes of documentation, the chapter chairs would continue to be responsible for the following: Promotion ‐Continue to develop own event flyers and forward to specific chapter chair listserv or separate maintained list ‐Send info/flyer to SMA to post onto CSMFO website and open registration ‐Outreach to past attendees, new members, members who are not typically in attendance, etc. Content ‐Develop lists of topics and speakers ‐Schedule/confirm speakers ‐Work with speaker for course summary and bio to promote event ‐Distribute presentation as necessary to attendees and SMA Site/Venue Location ‐Locate sites for chapter meetings ‐Make arrangements for event; work with SMA to ensure security deposits are made Post‐ Meeting Responsibilities ‐Send sign‐in sheet to SMA ‐Send on‐site registrations and payments to SMA; ensure payments include name/agency of attendee ‐Send final venue bill to SMA, along with receipt for credit card payments when applicable There are 20 chapters in CSMFO; two of which operate jointly, so 19 for the purposes of this proposal. Eleven chapters submitted reports for the 2013 Annual Report. Among those, ten of them reports holding a total of 40 meetings. Of those, seven reported attendance numbers, some exact and some estimated. The calculated average of 45 was used for the chapters that did not report attendance. One meeting annually with 45 attendees was used as an estimate for the eight chapters that did not submit a report. Extrapolating from these numbers, the estimated number of meetings annually is 50; the estimated attendees/CPE certificates/transactions is 2,500. The proposed additional fee for these services at this estimated volume is $14,985 annually ($1,248.75 monthly). We are estimating a total of 269 hours annually. The rate is based on the billable rates for a clerk and higher‐level staff oversight. Please let us know your thoughts on the above, or if you’d like additional information. We look forward to hearing from you!

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CSMFO BOARD REPORT

Date June 10, 2014 FROM: Scott Catlett Career Development Committee Chair SUBJECT: Weekend Training Update Background: The Career Development Committee will be presenting the hotel contract for the 2014 Weekend Training to the Board for approval. Additionally, due to the higher cost of Northern California locations, the projected gap between the budget and anticipated revenue for the training has increased. The Committee would like direction from the Board regarding how to address this issue. Options include increasing the fees charged to attendees and increasing the subsidy provided by CSMFO to offset a portion of the cost of the training. Recommendations: That the CSMFO Board of Directors:

1. Approve moving forward with a contract for the hotel that will serve as the location for the 2014 Weekend Training; and

2. Provide direction to the Career Development Committee regarding closing the gap between the projected budget and revenue for the Weekend Training.

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