3.

Finance

9/8/03 Exhibit F1 Florence Eng

Financial Reporting

The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing account that comprises its assets, liabilities, and fund equity, revenues and expenditures or expenses, as appropriate.

The District uses a system defined as “Modified Accrual” whereby accrual items are recorded at June 30, the end of the fiscal year. To allow time to complete the required year-end accounting process, the official year-end financial report will not be finalized until mid September. The official reporting date for the District to transmit financial data to the County is September 15, 2003.

Please find enclosed preliminary (unaudited) financial reports for Members' information.

1. Measure F Fund – June 30, 2003.

2. Measure F Fund – August 27, 2003.

3. Deferred Maintenance Fund – June 30, 2003.

4. Deferred Maintenance Fund – August 27, 2003.