1. COUNTY OF RIVERSIDE OFFICE OF THE AUDITOR-CONTROLLER Tax and Revenue Anticipation Notes (TRANS) Alma Avila, Senior Accountant April 21, 2005

2. Objectives Describe TRANS. Explain the benefits of TRANS. Provide an overview of the TRANS process. Outline the Auditor-Controller’s role. Outline the department’s role. Open forum/questions.

3. Description of TRANS Tax and Revenue Anticipation Notes. Issued by local governments. Finance short term cash flow deficits. Due to irregular receipts. Fund ongoing operations.

4. Benefits of TRANS An inexpensive method of financing short term cash shortfalls. Ability to produce additional income through arbitrage earnings.

5. TRANS Summary FY2003-2004 TRANS Borrowing Note Amount:$170,000,000 Note Repayment: (170,000,000) Borrowing Cost: (153,000) Interest Expense: (3,390,556) Premium: 1,881,900 Investment Earnings: 2,630,287 Net Gain to County: $ 968,631

6. TRANS Process Permitted in accordance with Government Code 53850. Authorized by Board resolution. Application filed to participate. Financial advisors are employed. Reviewed by debt rating agencies.

7. Monitor General Fund (GF) cash. Make projections for the following: 1.Current fiscal year ending cash balance. 2.Next fiscal year ending cash balance. 3.Next fiscal year’s lowest cumulative cash flow deficit. Recommend TRANS borrowing amount. Auditor-Controller’s Role

8. Department’s Role Expedient handling of cash deposits. Timely collection and recording of receivables. Observe accounting practice and rules for accruing revenue. Proper posting of GF revenues and expenditures.

9. Department’s Role (continued.....) Monitor GF budget vs. actual. Monthly reconciliation of accounts receivable and accounts payable. Amend budgets early in the year, when possible.

10. ACO Contacts Alma Avila 5-3952 Jerry Wood 5-3574 aavila@co.riverside.ca.us