final audit report.pdf el paso county public trustee financial statements• during the year the el...

EL PASO COUNTY PUBLIC TRUSTEE

FINANCIAL STATEMENTS

December 31, 2010

TABLE OF CONTENTS PAGE(S) Independent Auditors' Report 1 - 2 Management’s Discussion and Analysis i - v Basic Financial Statements: Governmental Fund Balance Sheet/Statement of Net Assets 3 Statement of Governmental Fund Revenues, Expenditures and Changes in Fund Balance/ Statement of Activities 4 Statement of Fiduciary Net Assets 5 Notes to Financial Statements 6 – 12 Required Supplementary Information: Schedule of Revenues Expenditures and Changes in Fund Balance Budget to Actual 13 Supplementary Information: Schedule of Cash Receipts, Disbursements and Changes in Cash Balance – Agency Fund 14

El Paso County Public Trustee Colorado Springs, Colorado

Independent Auditors' Report

We have audited the accompanying financial statements of the governmental activities, the major fund, and the aggregate remaining fund information of the El Paso County Public Trustee (Public Trustee), as of and for the year ended December 31, 2010, which collectively comprise the Public Trustee’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Public Trustee’s management. Our responsibility is to express opinions on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audit provides a reasonable basis for our opinions.

As discussed in Note 1, the financial statements of the Public Trustee are intended to present the financial position, and the changes in financial position, of only that portion of the governmental activities, the major fund, and the aggregate remaining fund information of El Paso County that is attributable to the transactions of the Public Trustee. They do not purport to, and do not, present fairly the financial position of El Paso County as of December 31, 2010, and the changes in its financial position, for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, the major fund, and the aggregate remaining fund information for the Public Trustee as of December 31, 2010, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

RubinBrown LLP Certified Public Accountants & Business Consultants

44 Inverness Drive East Englewood, CO 80112

T 303.799.6826 F 303.799.6926

W rubinbrown.com E [email protected]

El Paso County Public Trustee Colorado Springs, Colorado Page 2

The Management’s Discussion and Analysis and budgetary comparison information, on pages i through v and 13, respectively, are not a required part of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Public Trustee’s basic financial statements. The supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

July 11, 2011 RubinBrown LLP

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EL PASO COUNTY PUBLIC TRUSTEE OFFICE MANAGEMENT’S DISCUSSION AND ANALYSIS

FISCAL YEAR ENDED DECEMBER 31, 2010

This section of the El Paso County Public Trustee Office’s annual financial report presents our analysis of the El Paso County Public Trustee Office’s financial performance during the Fiscal Year ended December 31, 2010. Please read it in conjunction with the financial statements. FINANCIAL HIGHLIGHTS

• The El Paso County Public Trustee Office’s equity decreased by $115,952 or 12 percent (from $950,454 to $834,502).

• During the year the El Paso County Public Trustee Office’s operating revenues increased

$148,588 to $1,547,936 or 10.6 percent, while operating expenses decreased $59,887 to $767,802 or 7.2 percent. Operating revenue does not include interest earned. Interest revenue decreased $1,488 to $1,827 due to falling interest rates.

• The revenue increase was due to an increase in foreclosure revenues, which offset a reduction in release revenues.

• The operating expense decrease was largely due to a decrease in support needed from El

Paso County, and in postage paid. OVERVIEW OF THE FINANCIAL STATEMENTS This annual report consists of two parts:

o Management’s Discussion and Analysis o Financial Statements

The Public Trustee’s basic financial statements comprise two components: General Fund and Agency Fund. The General Fund is used by the Public Trustee to account for all financial resources and expenses, except those required to be accounted for in the Agency Fund. The Agency Fund is custodial in nature and does not have a financial effect on operations. The fund is used to account for assets held in a trustee capacity in connection with the processing of foreclosures. FINANCIAL STATEMENTS The financial statements of the El Paso County Public Trustee Office report information in accordance with accounting principles generally accepted in the United States (US GAAP) as applied to governmental units.

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FINANCIAL ANALYSIS OF THE EL PASO COUNTY PUBLIC TRUSTEE OFFICE The statements of net assets; and the statement of revenues and expenses report information about the El Paso County Public Trustee Office’s activities in a way that can help answer whether the Public Trustee Office’s overall financial position improved or deteriorated during the year. These two statements report the net assets of the Public Trustee Office and changes in them. The Public Trustee Office’s net assets (difference between asset and liabilities) are one way to measure financial health or financial position. Over time, increases in the Public Trustee Office’s net assets are one indicator that the Public Trustee Office’s financial health is improving. However, you will need to consider other non-financial factors such as changes in economic conditions, population growth, or changed government legislation. STATEMENT OF NET ASSETS As part of our analysis, we provide a summary of the El Paso County Public Trustee Office’s balance sheets as presented below. Net equity decreased $115,952 in 2010. This decrease was primarily due to a decrease in the operational reserve and reduced costs. The 2009 figures in this table reflect a year-end adjustment of $163,896 made by the auditors to write-off a receivable as a bad debt (the Dobbs’ redemption funds). This was documented in the 2009 audit.

CONDENSED GOVERNMENTAL FUND BALANCE SHEET 2010 2009 $ Change % Change Cash 987,477 1,083,331 ( 95,854) -8.8% Due from Other Funds 79,966 77,218 2,748 3.5% Prepaid Expenses 6,514 251 6,263 2,595.0% Accounts Receivable 73 73 0 0% TOTAL ASSETS $ 1,074,030 $ 1,160,873 ($ 86,843) -7.5%

Due to El Paso County 234,905 200,072 34,833 1.7% Accounts Payable 4,623 10,347 (5,724) -44.6% TOTAL LIABILITIES $ 239,528 $ 210,419 $ 29,109 13.8% Total Fund Balance 834,502 950,454 (115,952) -12.2% TOTAL LIABILITES & FUND BALANCE $ 1,074,030 $ 1,160,873

($ 86,843)

-7.5%

REVENUES AND EXPENSES While the Balance Sheet shows the change in financial position of net assets, the Statement of Revenues and Expenses provides answers as to the nature and source of these changes, as can be seen in the table below. 2010 revenue was 10.5% more than 2009 revenue. While release revenue dropped by 12.2% (and interest dropped another 44.9%, now about 95% less than in 2008), this was more than offset by a 27.3% increase in foreclosure revenue. 2010 expenses were 7.2% less than 2009 expenses. Expenses for salaries and benefits decreased 1.8%, as 2.7% increase in salaries paid was offset by a 12.6% decrease in the cost of benefits charged by El

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Paso County. Operating expenses decreased 26.8% -- in dollar terms, the main components of this reduction were a 41.8% reduction in the cost of services provided by El Paso County, and a 66.8% reduction in the cost of postage paid. These were partly offset by a 39.9% increase in office supplies and printing. Statement of Revenues and Expenses – Changes in Net Assets 2010 2009 $ Change % Change Fees for Release of Deeds of Trust 514,515.00 586,140.00 (71,625.00) (12.2)% Foreclosure Fees 1,033,041.47 811,719.51 221,321.96 27.3% Mailing/Copying/Phone costs 0 63.91 (63.91) (100.0)% Revenue Adjustments & Misc. Income 379.71 1,424.82 (1,045.11) (73.4)% Interest Income 1,826.95 3,314.55 (1,487.60) (44.9)% TOTAL INCOME 1,549,763.13 1,402,662.79 147,100.34 10.5% Salaries 469,852.62 457,434.43 12,418.19 2.7% Taxes/Insurances/Benefits 165,497.23 189,252.42 (23,755.19) (12.6)% TOTAL SALARIES/INSURANCES/BENEFITS 635,349.85 646,686.85 (11,337.00) (1.8)% Postage 4,106.05 12,375.79 (8,269.74) (66.8)% Legal Services 702.00 182.00 520.00 285.7% Audit Services 7,120.00 7,032.00 88.00 1.3% Other Professional Services 70.00 805.00 (735.00) (91.3)% Equip. Maint. & Rental 7,151.39 12,151.84 (5,000.45) (41.1)% Operating Equipment 2,476.82 2,476.82 Computer & Internet Services 22,427.66 24,266.43 (1,838.77) (7.6)% Office Supplies & Printing 26,959.37 19,265.20 7,694.17 39.9% Travel/Lodging/Meetings 249.19 1,168.14 (918.95) (78.7)% Bank Charges 7,251.94 12,177.73 (4,925.79) (40.4)% County Provided Services (not including benefits/insurances) 51,030.96 87,674.96 (36,644.00) (41.8)% Miscellaneous 2,906.32 3,902.97 (996.65) (25.5)% TOTAL OPERATING EXPENSES 132,451.70 181,002.06 (48,550.36) (26.8)% TOTAL SALARY & OPERATING EXPENSES 767,801.55 827,688.91 (59,887.36) (7.2)%

Bad Debts 163,896.00 (163,896.00) Auditor Adjustments (50.00) (50.00) NET INCOME 781,961.58 411,127.88 370,833.70 90.2% Paid to EPC Treasurer (897,913.16) (329,993.51) (567,919.65) 172.1% Increase (decrease) in Net Assets (115,951.58) 81,134.37 (197,085.95) (242.9)% BEGINNING OF YEAR FUND BALANCE/NET ASSETS 950,454.04 869,319.67 81,134.37 9.3% END OF YEAR FUND BALANCE/NET ASSETS 834,502.46 950,454.04 (115,951.58) (12.2)%

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CAPITAL ASSETS

The El Paso County Public Trustee Office had no capital assets and no long-term debt. BUDGET COMPARISON

The El Paso County Public Trustee Office prepares the budget from a very conservative position using the prior year’s operational totals as a basis, along with a line item for possible legal fees and an assumption that vacant positions would be filled. Reports showing the performance compared to budget are prepared monthly for review. The chart below displays that the El Paso County Public Trustee Office realized a 19% increase in total revenues for the year over expectations. Fees collected for foreclosures far exceeded expectations, despite fees for releases being less than expected. Salaries paid were below budget, as the vacant position was not filled, so salaries and benefits paid were 12% below budget. We incurred no significant legal fees and used much less postage than expected, so operating expenses were 36% below budget. Total expenses were 17.5% below budget. While this year’s performance exceeded the budgeted results, the El Paso County Public Trustee Office will continue to use the known operating results and current economic conditions to prepare future budgets. 2010 Statement of Budget Comparisons for Revenues and Expenses Actual Budget $ Variance % Variance Fees for Release of Deeds of Trust 514,515.00 540,000.00 (25,485.00) (4.7)% Foreclosure Fees 1,033,041.47 760,000.00 273,041.47 35.9% Mailing/Copying/Phone costs 0 0 Revenue Adjustments & Misc. Income 379.71 379.71 Interest Income 1,826.95 3,000.00 (1,173.05) (39.1)% TOTAL INCOME 1,549,763.13 1,303,000.00 246,763.13 18.9% Salaries 469,852.62 542,092.00 (72,239.38) (13.3)% Taxes/Insurances/Benefits 165,497.23 183,395.00 (17,897.77) (9.8)% TOTAL SALARIES/INSURANCES/BENEFITS 635,349.85 725,487.00 (90,137.37) (12.4)% Postage 4,106.05 15,000.00 (10,893.95) (72.6)% Legal Services 702.00 44,600.00 (43,898.00) (98.4)% Audit Services 7,120.00 5,000.00 2,120.00 42.4% Other Professional Services 70.0 0.00 70.00 Equip. Maint. & Rental 7,151.39 12,400.00 (5,248.61) (42.3)% Operating Equipment 2,476.82 10,000.00 (7,523.18) (76.2)% Computer & Internet Services 22,427.66 25,000.00 (2,572.34) (10.3)% Office Supplies & Printing 26,959.37 27,700.00 (740.63) (2.7)% Travel/Lodging/Meetings 249.19 1,250.00 (1,000.81) (80.1)% Bank Charges 7,251.94 10,000.00 (2,748.06) (27.5)% County Provided Services (not including benefits/insurances) 51,030.96 51,030.96 (0.00) 0.0% Miscellaneous 2,817.32 3,700.00 (882.68) (23.9)% TOTAL OPERATING EXPENSES 132,114.70 205,680.96 (73,566.26) (35.8)% TOTAL SALARY & OPERATING EXPENSES 767,801.55 931,167.96 (163,366.41) (17.5)%

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This financial report is designed to provide a general overview of the El Paso County Public Trustee’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:

El Paso County Public Trustee 105 East Vermijo, Suite 101

Colorado Springs, Colorado 80903 719-520-6780

General Statement ofFund Adjustments Net Assets

ASSETSCash and Cash Equivalents (Note 3) 987,477$ $ 987,477$ Due from Other Funds (Note 5) 79,966 79,966 Prepaid Expenses 6,514 6,514 Accounts Receivable 73 73

Total Assets 1,074,030 1,074,030

LIABILITIES AND FUND BALANCE/NET ASSETSCURRENT LIABILITIES

Due to El Paso County (Note 4) 234,905 234,905 Accounts Payable 4,623 4,623

Total Liabilities 239,528 239,528

FUND BALANCE/NET ASSETS Fund Balance Reserved for Prepaid Expenses 6,514 (6,514) Unreserved and Undesignated 827,988 (827,988)

Total Fund Balance 834,502 (834,502)

Total Liabilities and Fund Balance 1,074,030$


GOVERNMENTAL FUND BALANCE SHEET/STATEMENT OF NET ASSETS

December 31, 2010

, ,$

Net Assets Unrestricted 834,502 834,502

Total Net Assets $ 834,502$

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

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General Statement of Fund Adjustments Activities

EXPENDITURES/EXPENSES: Salaries and Benefits (Note 4) 635,349$ $ 635,349$ Other 69,422 69,422 County Provided Services (Note 4) 51,031 51,031 Professional Services 7,892 7,892 Postage 4,106 4,106 Excess Receipts Transferred to the Public Trustee Salary Fund (Note 4) 897,913 897,913

Total Expenditures/Expenses 1,665,713 1,665,713

CHARGES FOR SERVICES REVENUES: Fees: Foreclosures 1,033,041 1,033,041 Releases of Deeds of Trust 514,515 514,515 Miscellaneous 378 378

Total Charges for Services Revenues 1,547,934 1,547,934

GENERAL REVENUES:


STATEMENT OF GOVERNMENTAL FUND REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCE/STATEMENT OF ACTIVITIES

For the Year Ended December 31, 2010

GENERAL REVENUES: Interest Earnings 1,827 1,827

Total General Revenues 1,827 1,827

Total Revenues 1,549,761 1,549,761

EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (115,952) 115,952

CHANGES IN NET ASSETS (115,952) (115,952)

FUND BALANCE/NET ASSETS, Beginning of Year 950,454 950,454

FUND BALANCE/NET ASSETS, End of Year 834,502$ $ 834,502$


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ASSETS Cash and Cash Equivalents (Note 3) 1,589,419$

Total Assets 1,589,419

LIABILITIES CURRENT LIABILITIES Due to Other Funds (Note 5) 79,966 Accounts Payable 119,335 Foreclosure Deposits 1,390,118

Total Liabilities 1,589,419$


STATEMENT OF FIDUCIARY NET ASSETSAGENCY FUND

December 31, 2010


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NOTES TO THE FINANCIAL STATEMENTS December 31, 2010

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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying department financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. A summary of the significant accounting policies applied in the preparation of these department financial statements follows:

Reporting Entity

The El Paso County Public Trustee (Public Trustee) acts as an intermediary and recorder for foreclosures and releases deeds in El Paso County, Colorado (County). The Governor of Colorado appoints the Public Trustee.

The Public Trustee is considered an agency of the County financial reporting entity. The Public Trustee does not have any component units for which its officials are financially accountable, or for which the nature and significance of their relationship with the Public Trustee are such that exclusion would cause the Public Trustee’s financial statements to be misleading or incomplete.

The financial statements of the Public Trustee are intended to present the financial position and the changes in financial position of only that portion of the governmental activities, the major fund, and the aggregate remaining fund information of the County that is attributable to the transactions of the Public Trustee. They do not purport to, and do not, present fairly the financial position of the County as of December 31, 2010, and the changes in its financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Measurement Focus, Basis of Accounting and Financial Statement Presentation

The statement of net assets column on the governmental fund balance sheet/ statement of net assets and the statement of activities column on the statement of governmental fund revenues, expenditures, and changes in fund balance/statement of activities are reported using the economic resources measurement focus and the


NOTES TO THE FINANCIAL STATEMENTS (Continued) December 31, 2010

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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)

accrual basis of accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Fiduciary fund information is not included on the governmental fund balance sheet/statement of net assets or on the governmental fund revenues, expenditures, and changes in fund balance/statement of activities.

The general fund columns on the governmental fund balance sheet/statement of net assets and the statement of governmental fund revenues, expenditures, and changes in fund balance/statement of activities are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Public Trustee considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

The Public Trustee reports the following major governmental fund:

General Fund

The General Fund is used by the Public Trustee to account for all financial resources, except those required to be accounted for in the Agency Fund.

Additionally, the Public Trustee reports the following fund type:

Agency Fund

The Agency Fund is custodial in nature (assets equal liabilities) and does not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. The fund is used to account for assets held in a trustee capacity by the Public Trustee in connection with the execution of foreclosure transactions and in contracts for deeds to real property.



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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)

Agency Fund (Continued)

Fees earned in connection with foreclosure transactions are transferred from the Agency Fund to the General Fund when foreclosure proceedings are complete. Upon transfer, the fees are recognized as revenue by the General Fund.

Assets, Liabilities and Equity

Deposits and Investments

The Public Trustee’s investments are authorized by Colorado Statutes, which provide for the following:

• Bonds and other interest-bearing obligations of the United States government. • Bonds and other interest-bearing obligations that are guaranteed by the United

States government. • Bonds that are direct obligations of the State of Colorado, or any city, county,

or school district therein. • Notes and bonds issued pursuant to the “National Housing Act.” • Repurchase agreements. • Local government investment pools.

Investments are carried at fair value.

NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Budgets and Budgetary Accounting

The Public Trustee is appointed by the Governor of Colorado per CRS 38-37-102(1). In accordance with CRS 38-37-104(5), the Public Trustee sends quarterly financial reports to the Colorado Department of Local Affairs (DOLA), Division of Local Government (DLG) and to the Governor’s office. The Public Trustee prepares an operational budget annually and submits it to the El Paso County Board of County Commissioners for review.



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NOTE 2: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (Continued)

Budgets and Budgetary Accounting (Continued)

The Public Trustee establishes his budgetary data in accordance with the following procedures:

a. In September, the Public Trustee submits to the County Commissioners a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them.

c. Prior to December 31, the budget is adopted by the Public Trustee office.

d. Budgets are adopted on a basis consistent with US GAAP. Budgeted amounts are as originally adopted or as amended.

e. Budget appropriations lapse at the end of each year. NOTE 3: CASH AND CASH EQUIVALENTS

Deposits

The Colorado Public Deposit Protection Act (PDPA) requires all units of local government deposit cash in eligible public depositories, with eligibility determined by state regulators. Amounts on deposit in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds. The pool is to be maintained by another institution or held in trust for all the uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. The Public Trustee does not have a formal deposit policy, but does follow state statutes. The Federal Depository Insurance Corporation (FDIC) insures balances up to $250,000 per depositor through December 31, 2013.



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NOTE 3: CASH AND CASH EQUIVALENTS (Continued)

Deposits (Continued)

At December 31, 2010, the Public Trustee’s cash deposits had the following book and bank balances:

Book Bank Balance Balance

Cash on Hand $ 300 $ Deposit Held by Clerk & Recorder 6,000 Insured Deposits 250,000 250,000 Collateralized Deposits 1,492,503 2,329,197

Total Cash $ 1,748,803 $ 2,579,197

At December 31, 2010, the Public Trustee’s cash and cash equivalents, as reported in the financial statements, are as follows:

General Fund Cash and Cash Equivalents $ 987,477 Agency Fund Cash and Cash Equivalents 1,589,419

Total Cash and Cash Equivalents $ 2,576,896

Investments

The Public Trustee, as of December 31, 2010, had invested $828,093 in the Colorado Government Liquid Asset Trust (COLOTRUST, an investment vehicle established for local government entities in Colorado, pursuant to Part 7 of Article 75 of Title 24 of the Colorado Revised Statutes (CRS), to pool surplus funds for investment purposes). COLOTRUST operates similarly to a money market fund, and each share is equal in value to $1.00. The fair value of the position in the pool is the same as the value of the pool shares. The State Securities Commissioner administers and enforces all State statutes governing COLOTRUST. The designated custodial bank provides safekeeping and depository services to COLOTRUST in connection with the direct investment and withdrawal functions of COLOTRUST. Substantially all securities owned by COLOTRUST are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian’s internal records identify the investments owned by COLOTRUST. Investments of COLOTRUST consist of U.S. Treasury bills, notes, and note strips and repurchase agreements collateralized by U.S. Treasury notes. Investments in COLOTRUST are not categorized with respect to



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NOTE 3: CASH AND CASH EQUIVALENTS (Continued)

Investments (Continued)

risk assumed related to custody of assets because they are not evidenced by securities that exist in physical or book entry form. COLOTRUST investments are rated AAAm by Standard and Poor’s. Financial statements for COLOTRUST may be obtained at www.colotrust.com.

The Public Trustee follows investment policies as dictated in the Colorado Revised Statutes.

NOTE 4: DUE TO EL PASO COUNTY

Payroll and related tax and insurance expenditures of the Public Trustee are initially paid and recorded by the County. The Public Trustee then reimburses the County for these expenditures paid on behalf of the Public Trustee. As of December 31, 2010, the Public Trustee had not yet reimbursed the County $57,288 for salaries and benefits paid on behalf of the Public Trustee.

According to CRS 38-37-102, the El Paso Board of County Commissioners shall furnish, at the expense of the County, all office supplies, including books, forms, and stationery necessary for the use of the Public Trustee in carrying out duties of the Public Trustee’s office. For the year ended December 31, 2010, the County incurred no such expenditures.

Funds Transferred to El Paso County

CRS 38-37-104 states the Public Trustee shall pay to the County Treasurer all sums received as fees in excess of the amount of salary and in excess of all necessary and reasonable expenses, which monies shall, by the County Treasurer, be placed to the credit of the Public Trustee Salary fund. As of December 31, 2010, the Public Trustee had not yet remitted $177,617 due for forth quarter excess funds to the County Treasurer.

For 2010, a net amount of $1,584,476 was required to be transferred to the County, of which $897,913 is attributable to certain 2010 receipts in excess of certain expenditures transferred to the Public Trustee’s salary fund, $635,349 is attributable to the reimbursement of salaries and benefits on the Trustee’s behalf, $51,031 is related to services provided by the County for Public Trustee operations, and $183 is for telephone costs.



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NOTE 5: DUE FROM OTHER FUNDS

Due from other funds of $79,966 in the General Fund represents amounts owed from the Agency Fund for December 2010 earned revenues.

NOTE 6: OPERATING LEASES

The Public Trustee entered into an operating lease agreement with Pitney Bowes for a mailing system and a folding machine for a period of 60 months beginning June 2006 through May 2011. Monthly payments were contracted at $250 for the mailing system and $216 for the folding machine. In February 2009, the Public Trustee cancelled the lease for the folding machine and made the required payment due for early cancellation. The postage machine lease is still in effect requiring reduced total monthly payments of $193.

The Public Trustee has two 60-month operating lease agreements with Ikon for copy machines. The terms of the leases are March 2006 through February 2011 and April 2006 through March 2011, with monthly lease payments of $126 and $143, respectively.

The Public Trustee paid a total of $5,586 in operating lease costs during 2010. Future minimum payments under the lease agreements are as follows:

Pitney Bowes Total

2011 965$ 253$ 714$ 1,932$

Total 965$ 253$ 714$ 1,932$

Ikon

REQUIRED SUPPLEMENTARY INFORMATION

Original & VarianceFinal FavorableBudget Actual (Unfavorable)

REVENUES Fees: Foreclosures 760,000$ 1,033,041$ 273,041$ Releases of Deeds of Trust 540,000 514,515 (25,485) Miscellaneous 378 378 Interest Earnings 3,000 1,827 (1,173)

Total Revenues 1,303,000 1,549,761 246,761

EXPENDITURES Salaries and Benefits 725,487 635,349 90,138 Other 90,050 69,422 20,628 County Provided Services 51,031 51,031 Professional Services 49,600 7,892 41,708 Postage 15,000 4,106 10,894

Total Expenditures 931,168 767,800 163,368

EXCESS (DEFICIENCY) OF REVENUES


SCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCE - BUDGET TO ACTUAL


See the accompanying independent auditors' report.

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EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES BEFORE 371,832$ 781,961 410,129$ TRANSFER OF EXCESS FUNDS

Excess Receipts Transferred to the Public Trustee Salary Fund (897,913)

FUND BALANCE, Beginning of Year 950,454

FUND BALANCE, End of Year 834,502$

Notes:The basis of budgeting is the same as GAAP. This schedule is presented on a GAAP basis.


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SUPPLEMENTARY INFORMATION

CASH RECEIPTS: Foreclosure Sales 36,778,871$ Foreclosure Redemptions 5,694,247 New Foreclosure Deposits 2,189,763 Foreclosure Cures 2,845,079 Deeds, Intents, and Redemption Certificate Fees 103,237 Voided Checks - Due to Colorado Payback 1,823 Voided Overbid Checks - Due to El Paso County Treasurer 109,322 Miscellaneous Receipts 114,861

Total Cash Receipts 47,837,203

CASH DISBURSEMENTS: Disbursement of Sale Proceeds 35,317,475 Disbursement of Redemption Proceeds 6,087,929 Disbursement of Cure Proceeds 2,889,538 Foreclosure Fees Earned and Transferred to General Fund 1,069,808 Publication Costs 834,506 Disbursed Overbids 1,032,677 Disbursement of Non-used Bid Money 102,000 Recording Fees 193,011 GTS Payments for E-Recording Fee Costs 222,975 Refunds of Overpayments of Balance of Costs 113,027 Deposit of Clerk & Recorder for E-Recording Fees 2,000

U l i d F d T d O t C l d P b k 1 823


SCHEDULE OF CASH RECEIPTS, DISBURSEMENTS AND CHANGES IN CASH BALANCE - AGENCY FUND


Unclaimed Funds Turned Over to Colorado Payback 1,823 Unclaimed Overbid Fund Paid to El Paso County Treasurer 109,322 Legal Costs 156

Total Cash Disbursements 47,976,247

EXCESS OF CASH RECEIPTS OVER CASH DISBURSEMENTS (139,044)

CASH BALANCE, Beginning of Year 1,722,463

CASH BALANCE, End of Year 1,583,419

Deposit Held with Clerk & Recorder 6,000

TOTAL CASH AND CASH EQUIVALENTS 1,589,419$

Noncash Activities Relating to Foreclosure Sales:The Public Trustee received notes valued at $639,920,052 and in placeissued certificates of purchase valued at $549,231,267 in connectionwith foreclosure sale proceeding during 2010 related to those notes.


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final audit report.pdf el paso county public trustee financial statements• during the year the el...

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