LOS ANGELES COUNTY CHILDREN AND FAMILIES FIRST – PROPOSITION 10 COMMISSION NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2009
NOTE 9 – COMMITMENTS AND CONTINGENCIES
The Commission leases various equipment from a third party. The future minimum rental payments due under these leases are as follows:
Fiscal Year Ending June 30 2010 2011 2012 2013 2014 Total
$ 37,768 37,768 37,768 37,768 29,631 $ 180,703
The Commission has entered into future funding commitments with various entities, which are contingent on State funding.
NOTE 10 – STATE SCHOOL READINESS PROGRAM
The Commission participates in the State School Readiness Program and receives funds to be used to coordinate, develop, implement and sustain a system of collaborative school-based or linked services, programs and informal supports based on research or promising practices to improve “school readiness” for children, families, communities and schools. A local match of the program funds expended each year is required and can be met through a cash match, including Commission funds, new expenditures by school districts and local public agencies in excess of existing local investments that are specifically targeted to an element of the School Readiness Program, or funds from private sources such as foundations and businesses.
The State’s policies and procedures for reporting program costs and requesting program funding have evolved since the program’s inception, and based in current State policies, the Commission is entitled to current year funding based on achieving the matching requirements. In the current fiscal year, the Commission expended approximately $28.3 million in grantee expenses. Of the $28.3 million State School Readiness Program expenses, the Commission is eligible to receive funding under the one to one match of $14.7 million. $15.4 million in revenue was recognized in the current fiscal year and includes coordination funds and a 50% advance based on the FY 08/09 budgeted amount. The Commission recorded deferred revenue of approximately $2.0 million at June 30, 2009.
NOTE 11 - RELATED PARTY TRANSACTIONS
The Commission is required to use the County Treasurer for treasury and investment services and paid fees totaling approximately $15,111 during the year ended June 30, 2009.