CAFR2015-final

Coastal Bend Council ofGovernments
Offices located in Corpus Christi,Texas
Comprehensive
ANNUAL
Financial
REPORT
Serving Aransas,Bee,Brooks,Duval,Jim Wells,Kenedy,Kleberg,
Live Oak,Nueces,Refugio andSan Patricia Counties
Year Ended
December 31,2015

COASTAL BEND
COUNCIL OF GOVERNMENTS
Corpus Christi,Texas
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Fiscal Year Ended
Deeember 31,2015
Prepared by
The Finance
And
Administrative Department
Veronica Toomey,CPA,Director ofFinance
Juanita Hale,Accountant
Susan Kieman,Accountant
Yazmin Campos,Administrative Assistant

COASTAL BEND COUNCIL OF GOVERNMENTS
Comprehensive AnnualFinancial Report
Year EndedDecember 31,2015
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Number
Letter ofTransmittal I - VI
Organizational Chart VII
Governing Board and Executive Staff VIII- X
GFOA Certificate ofAchievement XI
Map ofthe Coastal Bend Council ofGovernments XIII
FINANCIAL SECTION
Independent Auditor's Report 1-3
Management's Discussion and Analysis 5-12
Basic Financial Statements:
Government-wide Financial Statements:
StatementofNetPosition 13
Statement ofActivities 14-15
Fund Financial Statements:
Balance Sheet-Governmental Funds 16
Reconciliation ofthe Governmental Funds Balance Sheet
to the Statement ofNetPosition 17
StatementofRevenues,Expenditures and Changesin
Fund Balances - Governmental Fimds 18
Reconciliation ofthe StatementofRevenues,Expenditures,and Changes
in Fund Balances ofGovernmental Fimdsto the Statement ofActivities 19
General Fund Statement ofRevenues,Expenditures and Changes
in Fund Balance-Budgetand Actual 20
Special Revenue Fund-9-1-1 Program StatementofRevenues,
Expenditures and Changesin Fund Balance-Budgetand Actual 21
Notes to the Financial Statements 23-34
Supplemental Schedules:
Capital Assets Used in the Operation ofGovernmental Funds:
Comparative Schedules by Source 37
Schedule by Function 38
Schedule ofChanges by Fimction 39

YearEndedDecember 31,2015
TABLE OF CONTENTS
Schedule ofRevenues and Expenditures-Budget and Actual
General Fund GrantPrograms:
Grant
Number
3131-571
3131
3141
3162
3172
6115
8151
8152
8153
8154
8155
8156
8162
8163
8165
8166
8167
8171
8174
9095
9152-100
9152-111-113
9152-200
9152-300
9152-400-401
9152-410
9152-500
9152-510
9152-530
9152-541
9152-543
9152-544
9152-545-546
9152-305,535,
547,548
9152-549
9152-557
9153
Grant Name
Page
Number
GDEM
GDEM
GDEM
VOAD
EDA
WFM -
CJD
CJD
TCEQ
TCEQ
ORCA
DADS
CJD
TCEQ
ORCA
DADS
HSGD
CJD
TCEQ-
GCG -
DADS-
DADS
DADS-
DADS
DADS
DADS
DADS-
DADS-
DADS-
DADS
DADS-
DADS
DADS
DADS-
-2013 Emergency Management Mass Fatality 42
-2013 Emergency ManagementPlanning Project 42
-2014 Emergency ManagementPlanning Project 43
-2016 Volunteer Organizations Active in Disasters 43
-2015-2017Economic Development Administration 44
-2015 Walk for Memory Respite 44
-2013-2015 Regional Training Academy 45
-2015 Regional Criminal Justice Coordination 45
-2015 Water Quality Management 46
-2013-2015 Solid Waste ManagementPlanning 46
-2015 Regional Review Committee 47
-2015 Lifespan Respite Care 47
-2016 CJD Planning 48
-2016 Water Quality Management 48
-2016 Regional Review Committee 49
-2016 Life Span Respite 49
-2016 Homeland Security Grants Division Services 50
-2015-2017Regional Training Academy 50
-2015-2017 Solid Waste ManagementPlanning 51
-2015 Grande Communication Grant 51
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
2015 Title
DADS-2015 Title
DADS-2015 ACI,
DADS-2015 Title
II, Administration 52
II,Supportive and Nutrition Services 52
II,Ombudsman Activities 53
II,Care Coordination 53
II,Legal Assistance 54
II,Legal Assistance Under60 54
II,Information Referral& Assistance 55
II,Evidence Based Intervention 55
II,Family Caregivers Ed.&Trg 56
II,Data Management 56
II,Legal Awareness 57
II,Nutrition Consultation 57
II,Information Services/GOECSC 58
II,Elderly Services Purchase Pool 58
II,Family Caregivers Coordination 59
VIIPPA,#2,Legal Awareness Services 59
II,Aging&Disability Resource Center 60

YearEndedDecember 31, 2015
TABLE OF CONTENTS
Grant
Number Grant Name
Page
Number
9154 CBCF-2015 Coastal Bend Commimity Foundation 60
9162-100 DADS-2016 Title III, Administration 61
9162-111-113 DADS-2016 Title III,Supportive «& Nutrition Services 61
9162-200 DADS-2016 Title III,Ombudsman Activities 62
9162-300 DADS-2016 Title III,Care Coordination 62
9162-400-401 DADS-2016 Title III,Legal Assistance 63
9162-410 DADS-2016 Title III,Legal Assistance Under60 63
9162-500 DADS-2016 Title III,Information Referral& Assistance 64
9162-510 DADS-2016 Title III,Evidence Based Intervention 64
9162-530 DADS-2016 Title III,Family CaregiverEd &Trg 65
9162-541 DADS-2016 Title III,Data Management 65
9162-543 DADS-2016 Title III,Legal Awareness 66
9162-544 DADS-2016 Title III,Nutrition Consultation 66
9162-545-546 DADS-2016 Title III,Information Services/GOECSC 67
9162-305,535, DADS-2016 Title III,Elderly ServicesPurchase Pool 67
547,548
9162-549 DADS-2016 Title III,Family Caregiver's Coordination 68
9162-557 DADS-2016 ACL MIPPA #2Legal Awareness Services 68
9163 DADS-2016 Aging&Disability Resource Center 69
9164 CBCF -2016 Coastal Bend Community Foundation 69
Totals 70
Schedule ofIndirect Costs 71
Schedule ofRelease Time 72
STATISTICAL INFORMATION
NetPosition 74-75
Changesin NetPosition 76-77
Fund Balances ofGovernmental Funds 78-79
Changesin Fund BalancesofGovernmental Funds 80-81
GeneralFund Expenditures by Fimction 82-83
General Fund Revenues by Source 84
Membership Dues by Entity 86-89
9-1-1 Service Fees by Number ofTelephone Lines 90
Demographic and Economic Statistics 92-93
Principal Employers 94
Full-time EquivalentEmployees by Function 96-97
Operating Indicators by Function 98-99
Capital Asset Statistics by Function 100-101
Cheirts ofGeneral Fund Program Expenditures and Indirect Costs 102
Schedule ofInsurance in Force 104-105

YearEndedDecember 31,2015
TABLE OF CONTENTS
Page
Number
SINGLE AUDIT SECTION
Independent Auditor's Reporton Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit ofFinancial Statements Performed in Accordance with
GovernmentAuditingStandardsandthe State ofTexas Uniform Grant
Management Standards 107-108
Independent Auditor's Reporton Compliance with Requirements
ThatCould Have a Direct and Material Effecton Each Major Federal and
State Program and Internal Control Over Compliance in Accordance with0MB
Circular A-133 and the State ofTexas Uniform Grant
ManagementStandards 109-110
Schedule ofFindings and Questioned Costs 111-112
Schedule ofExpenditures ofFederal/State Awards 113-115
Notesto Schedule ofExpenditures ofFederal/State Awards 116

Coastal Bend Council of Governments
June 20,2016
To the Chairman and Board ofDirectors ofthe
The comprehensive annual financial report of the Coastal Bend Council of Governments (the
Council)for the year ended December 31,2015,is hereby submitted. The financial statements
are presented in conformity with accounting principles generally accepted in the United States of
America(GAAP)and audited in accordance with auditing standards generally accepted in the
United States of America by an independent firm of certified public accountants. Collier,
Johnson & Woods,P.C.
This report consists of management's representations concerning the finances of the Council.
Consequently,management assumes full responsibility for the completeness and reliability ofall
of the information presented in this report. To provide a reasonable basis for making these
representations, management of the Council has established a comprehensive internal control
framework that is designed both to protect the Council's assets from loss,theft,or misuse and to
compile sufficient reliable information for the preparation ofthe Council's financial statements
in conformity with GAAP. Because the cost of internal controls should not outweigh their
benefits, the Council's comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatement. As management,we assert that,to the best ofour knowledge and belief,
this financial report is complete and reliable in all material respects.
The independent audit ofthe financial statements ofthe Council was part of a broader,federal
and state mandated "Single Audit"designed to meetthe special needs offederal and state grantor
agencies. The standards governing Single Audit engagements require the independent auditor to
report not only on the fair presentation of the financial statements, but also on the audited
government's internal controls and compliance with legal requirements, with special emphasis
on internal controls and legal requirements involving the administration of federal and state
awards. These reports are presented in the Single Audit Section.
GAAP require that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form ofManagement's Discussion and Analysis
(MD&A). This letter oftransmittal is designed to complement MD&A and should be read in
conjunction with it. The Council's MD&A can be found immediately following the report of
the independent auditors.
Profile ofthe Coastal Bend Council of Governments
The Coastal Bend Council of Governments was officially established on March 23, 1966,
making it one ofthe earliest regional councils formed in the state. The organization was brought
LOCATION:2910 LEOPARD STREET
MAILING ADDRESS:P.O. BOX 9909
PHONE:(361)883-5743
CORPUS CHRISTI,TEXAS 78469

into being under an inter-county agreement approved by the Commissioners' Courts of the
original six member counties - Brooks, Duval, Jim Wells, Kleberg, Nueces and San Patricio.
The original agreement was amended,and a revised version became effective on November 14,
1966. By March of1967,six more coimties-Aransas,Bee,Live Oak,Kenedy,McMullen and
Refugio and nine cities - Rockport, Beeville, Alice, Kingsville, Corpus Christi, Robstown,
Portland, and Mathis had also ratified the agreement. On September 13, 2013, Governor Rick
Perry signed an executive order allowing McMullen County to move from the Coastal Bend to
the Alamo Area Council ofGovernments. Today eleven counties and thirty-one cities comprise
the Coastal Bend/State Plarming Region 20 an area of 10,273 square miles with a population of
nearly 591,654.
The Council is a voluntary association of cities and counties in eleven-county region centered
around the Corpus Christi metropolitan area. It is one oftwenty-four COGsin Texas,all legally
defined as political subdivisions of the state. They are governmental agencies with legal
responsibility for multi-jurisdictional planning in program areas such as emergency
communication systems, criminal justice, solid waste management, environmental protection,
and emergency management planning in addition to being the Area Agency on Aging,which has
the responsibility for providing nutrition and social servicesfor the elderly. They have no taxing
authority and no police powers.
The Council is the designated economic development district responsible for economic
development planning.
Authorized by the Texas Regional Planning Act of 1965,as amended and codified,the Council
is designated as the regional clearinghouse to review and comment upon grant applications
submitted by entities throughout the region seeking state or federal fimding. In addition, the
Council provides technical assistance, service, and training to member governments in
administration ofarea-wide programs. Financial supportfor these program activities is provided
through local dues, state and federal grants that are matched by local monies,and other public
and private funds.
The 68-member Board ofDirectors,the governing body ofthe council, meets 11 times a year,
usually on the fourth Friday ofthe month,except in November and December, when the board
meets on the second Friday in December. These meetings, as well as those of all advisory
committees held atthe agency,are open to the public.
Membership in the Council is open to all governmental imits in the 11-coimty Coastal Bend
planning region, including coimties, cities, and special districts. For county and city
governments,dues are ten cents per capita, based on census data; a fee of$125 annually exists
for special districts. Each county is allowed one representative for each 20,000 persons or
fraction thereof. Each city is allowed one representative forthe first 15,000 population and up to
one additional representative for each additional 35,000 persons or fraction thereof. The coimty
population determines the possible votes for that county. Ifall the voting representatives were
present at a Council meeting,there would be 35 total votes possible based upon the latest census
(2010). Special districts do not have a vote on the governing board.
The Council's annual budget serves as a guide for financial planning and control. All
departments ofthe Council are required to submit their federal and state program budgets to the
II

finance department on or before the last day in September each year. The finance department
usesthese program budgets asthe starting pointfor developing the Coimcil's proposed budget.
Thefinance department presentsthe proposed budgettothe budgetcommittee for review priorto
November 30'*'. The budget committee is required to make a recommendation to the Board of
Directors by mid-December. The Board ofDirectors is required to adoptthe original budget by
the end ofDecember. The Board made supplemental budgetary appropriations throughout the
year, the effects of which were not material. The appropriated budget is prepared by fund,
function, and department. Department heads may make transfers of appropriations within a
function. Budget-to-actual comparisons are provided in this report for the general fund and
special revenue fund for which an appropriated annual budget has been adopted. The
comparisons are presented on pages 20-21 as part of the basic financial statements for the
governmentalfunds.
LocalEconomy
This report will provide overall review ofthe Region's recent economic activities. The Coastal
Bend Region from 2012 through 2015 experienced considerable economic improvements based
upon the Eagle Ford Shale exploration and development,announcements ofnew manufacturing
plants,transportation investments,both proposed and accomplished,and the continuation ofthe
Region's other economic activities in the areas of agriculture, education, health facilities,
military bases, tourism, construction, and government. Below we will look at each of these
sectors.
While onlytwo ofthe Coastal Bend counties.Bee and Live Oak,are included in the Eagle Ford
Shale production area, the impact from this oil and gas exploration and production has had a
dramaticimpacton other countiesinthe Region in particular Jim Wells,Nueces and San Patricio
due to oil and gas service industries,pipeline construction,and the refining and processing ofthe
oil and gas produced. Recently, the significant decline in oil prices during 2015 have had a
dramatic impact on oil field and natural gas exploration activities. This industry sector and
supporting businesses have been affected forcing layoffs and some business closures. The
surviving drilling and support operations function with very limited staff and much surplus
equipment. Still oil field and energy sector infrastructure established during the exploration
boom are currently providing plenty of cheap oil and gas through pipeline transmission.
Petroleum refineries, chemical plants and steel plants are all benefiting from cheaper fuel and
feedstock. In addition to existing manufacturing plants,this oil and gas will serve as feedstock
to manufacturing plants that will be builtin the Corpus Christi Metropolitan area.Electric power
producers also benefitfrom cheaperfuel costs.
Earlier reports projected direct, indirect and induced full-employment for the Region due to
Eagle Ford Shale.In the two producing counties,there were 3,284jobs created and in the three
counties outside the drilling area that were impacted the most,the number ofjobs created was
8,814 with Nueces County accounting for 6,699 ofthem. The report also projectedjob growth
for 2021 with the production counties estimated to have 6,015 jobs and the non-production
counties having 18,914. With the current slowdown in oil and gas production due to lower oil
prices,the projected number ofjobs will not be as numerous as projected. Looking at covered
employment in the Coastal Bend Region between 2010 and 2014,shows an overall increase of
11 percent. However, between 2014 and 2015, there was a 3.8 percent decline in covered
employment. Live Oak County had the largest decline of about 13 percent. Jim Wells County
111

was next with a 11.8 percent decline. Bee County only declined 2.7 percent while Nueces and
San Patricio Counties each saw a 1.9 percent decline. These are the counties most impacted by
the oil and gas exploration.
With the selection ofGregory in San Patricio Coimty as the location for a pipe manufacturing
plant,the 2011 ground-breaking ceremonyfor the Tianjin Pipe Corporation wasthe beginning of
new industry coming to the Region. Total investmentin new plants are projected to be over $33
billion. Among some ofthe new manufacturing plants are an Italian chemical company that will
invest$800 million and an Austrian company that will invest$713 million to establish a plantto
produce feedstock for the production ofsteel. Texas-based companies have also announced new
plants or expansion ofexisting plants. Cheniere Energy Inc.is investing $11 billion in a natural
gas liquefaction facility and a liquefied natural gas export terminal. Oxychem proposes a new
ethylene plant and many ofthe midstream oil and gas companies are expanding theirfacilities to
accommodate the exporting ofproducts.
Transportation projects are key to the economic growth in the Region.Pipelines that connectthe
oil and gas production areas with the PortofCorpus Christi were built. The Portis building new
docks and terminals to facilitate the outbound shipment ofcrude and other petroleum products.
The Port is also extending and deepening the LaQuinta Channel which serves the Port's north
shore industrial sites in San Patricio County. The Port also received a grant to construct a rail
yard to accommodate shipments of oil and gas related product. Beginning with a Texas
Department of Transportation feasibility study in 2001,the replacement ofthe Harbor Bridge
thatspansthe entrance to the PortofCorpus Christi has been a goal ofthe Region.Reasonsfor a
new bridge are safety and to allow the larger ships to enter the Port.Funding for this project has
been secured and construction is anticipated in the near future. While the new bridge will be
located nearthe existing one,traffic pattemsand residential and commercial development will be
impacted resulting in new opportunitiesfor Corpus Christi's growth.
The Region has had an important military presence since the beginning ofWorld War II. Several
bases have come and gone causing economic dislocation. Currently, two communities have
major military installations. In Corpus Christi, there is the Naval Air Station and the Corpus
Christi Army Depotthat are credited with close to a$4 billion dollar annual impactthatincludes
civilian and military payrolls,private business investments,and commercial and retail spending
related tothe bases.There has been areduction in the number ofemployees atthe Corpus Christi
bases in recent years. The Kingsville Naval Air Station has been reported to have an $819
million impact on the Region. Many military retirees have located in the Region and there are
efforts to encourage newly retired military to stay in the Region. This is done through
Worksource training and university programs. Since the military helps maintain the economic
vitality ofthe Region,there is always a concern ofthe impact from a Congressional review of
military basesand the possibility ofreduction or closure to the existing military installations.The
Region maintains a committee that works with the military to address issues that would
negatively impactthe installations.
While the other economic activities in the Region are notevenly distributed to each county,they
all impact employment and economic growth. Agriculture accounts for less than one percent of
the employmentinthe Region,butfour counties have agriculture employmentofthree percentor
more.Like oil and gas employment,the Coastal Bend Region has a higher percentage ofpersons
employed in construction, health care, and hospitality industry clusters than does Texas and the
U.S.as a whole.Along with Industrial Manufacturing,these five industry clusters accountfor47
IV

percent ofemployment in the Region as compared to Texas at 37.3 percent and the U.S. at 36
percent. This provides an indication of what makes up the Region's economy and the focus of
the Coastal Bend's economic development activities.
Long term financial planning
The Council adopted a balanced budget for 2016, as well as, a projected surplus of $45,172.
This was due to an increase in membership dues from $.08 per capita to $.10 per capita, which
generated an additional $20,000 in revenue. The Council is committed to reducing its operating
expenditures related to travel costs for staffdevelopment with Webinars,and the hiring ofpart-
time help(lessthan 30 hours)to avoid the costs offull-time employee benefits.The Council will
recover its 2015imderrecovery ofindirectcostsof$42,504in 2016.
Atthe start of2015,the Councilimplemented a Central Service Cost Allocation Plan in order to
allocate to the grant programs accounting and payroll services, management advisory services
and reproduction and mail out services according to benefits received rather than recovering
these costs via the Council's indirect cost rate as done so in previous years. The personnel costs,
$90,882, and operation costs, $14,151, associated with these central services were allocated as
direct expenditures to the grant programs based on the number ofemployees direct charged to
the grants, the number of accormts payable invoices processed and the direct hours spent on
preparing accountsreceivable billings,providing managementadvisory servicesand printing and
mailing out newsletters. This allows the Councilto charge the grantstheir fair share ofthe costs
ofproviding these services.
In addition to implementing a Central Service Cost Allocation Plan, the Council revised its
fi-inge benefits rate plan to consist, only of paid time off for vacation leave, sick leave and
holiday leave and allocatesthe employees'paid time offviaarate of17.53%.The Council direct
charges the grants the employees' fringe benefits costs for health and dental insurance,
retirement,and social security taxes based on actual costs ofthe benefits by employee to avoid
any over or under recovery offiinge benefits costs through the utilization ofafiinge benefitrate
as done so in previous years.
MajorInitiative
In 2015,the Council secured the last two Public Safety Answering Points(PSAPs)with fiber
optic connectivity through Time Warner Business at Kleberg County Sheriff Office and
Kingsville Police Department which cost$136,774.Fourteen PSAPs are equipped with the fiber
optic connectivity. Three PSAPs, Live Oak County Sheriff, Freer Police Department, and
Ingleside Police Department remain connected by T-1 circuits as there is no Time Warner
Business presence atthese locations. Fiber optic cable provides a pathway that offers advanced
electronics that deliver very high bandwidth and thus very high transmission speeds over greater
distancescompared with othertransmission platforms.
In addition to the securing the fiber optic coimectivity,the Council purchased MapFlex 9-1-1 and
MapSAG GIS for the PSAPs and the Council's 9-1-1 Network Department,respectively,in the
amount of $90,294. MapFlex 9-1-1 allows call takers to respond to 9-1-1 locations in a user-
fiiendly,map centric application. The intuitive user interface reduces attention demands on call
takers resulting in fewer errors,less stress and faster,more accurate response times. MapSAG is
designed to allow the user to establish control ofboth GIS and 9-1-1 databases within a single,
V

automated user interface. MapSAG has the ability to work seamlessly with Esri's ArcGIS for
Desktop to streamline GIS data maintenance and accuracy. MapSAG will not only produce
highly accurate data it also allows for synchronization ofthe MSAG and GIS data,a crucial step
on the path to NG9-1-1.
Currently, the Council has implemented an Emergency Services Intemet Protocol Network
(ESlnet)as a two host PSAP and 15 remote PSAP connectivity exists. This network can send
voice, text and data calls to the PSAPs. As this system moves towards next generation 9-1-1,
many public safety capabilities will become available. It will take several years for this to
evolve. The State Commission on State Emergency Communications has to implement a state
wide ESlnet which will be an expensive endeavor. ESlnet is the first critical step toward next-
generation 9-1-1. The network will be broadband-enabled supporting the transmission ofvideo,
images and other bandwidth-intensive data files that would choke narrowband systems. ESlnet
enablesthe sharing ofemergency data betweenPSAPs.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to Coastal Bend
Council of Governments for its comprehensive annual financial report for the fiscal year ended
December 31,2014. In order to be awarded a Certificate of Achievement,a government unit
must publish an easily readable and efficiently organized comprehensive annualfinancial report.
This report must satisfy both generally accepted accoimting principles and applicable legal
requirements.
A Certificate ofAchievementis valid for a period ofonly one year. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program's requirement and we are submitting it to the GFOA to determine its eligibility for
another certificate.
The preparation of this report could not have been accomplished without the efficient and
dedicated services ofthe entire staffofthe finance and administrative department,the Council's
executive staffand our independent auditors.Collier,Johnson& Woods,P.C. We would like to
express our appreciation to all members ofthe finance and administrative department and other
staff members who assisted and contributed to the preparation ofthis report. Due credit also
should be given to the Council's chairman and board members for their interest and support in
planning and conducting the operationsofthe Coimcilin aresponsible and progressive manner.
Respectfully submitted.
John P.Buckner
Executive Director
Veronica A.Toomey,CPA
Director ofFinance
VI

ORGANIZATIONAL CHART
Environmental
Protection Program
Executive Director
Planning & Economic
Development Director
Finance
Director
Emergency Mgmt.
Program
9-1-1 Network
Program
Area Agency
on Aging Director
General Membership
11 Counties
31 Cities
7Special Districts
VII

Governing Board and Executive Staff
(01/01/2015-12/31/2015)
OFFICERS
CHAIRMAN
1^^ VICE CHAIRMAN
2^° VICE CHAIRMAN
SECRETARY
TREASURER
PAST CHAIRMAN
City Commissioner A1 Garcia,Kleberg
Coimty
Judge C.H Mills,Aransas County
Commissioner Margie Gonzalez,Jim Wells
County
Commissioner Nina Trevino,San Patricio
County
Commissioner Mike Pusley,Nueces County
Judge Terry Simpson,San Patricio Coxmty
MEMBER GOVERNMENTS/REPRESENTATIVES
Aransas County(2votes)
Judge C.H.Mills
Commissioner Charles Smith
City ofRockport
Mayor C.J. Wax
Town ofFulton
Mayor Jimmy Kendrick
Bee County(2votes)
Judge Stephanie Silvas
Mr.Michael Willow
City ofBeeville
Mayor David Carahajal
Brooks County(1 vote)
Judge Imelda Barrera
City ofFalfurrias
Vacant
Duval County(1 vote)
Judge Ricardo O.Carrillo
City ofBenavides
Mayor Sijifredo Flores
City ofFreer
Mayor Fabian Bazan
City ofSan Diego
Mayor Rupert Canales,III
Jim Wells County(2votes)
Judge Pedro Trevino
Commissioner Margie Gonzalez
City ofAlice
Mayor Ike Omelas
Vacant
City ofOrange Grove
Mr.Rick Lopez
City ofFremont
Councilman Raul Garcia
Kenedy County(1 vote)
Commissioner Louis Turcotte
Kleberg County(2 votes)
Judge Ruby Madrid
Commissioner Roy Cantu
City ofKingsville
City Commissioner A1 Garcia
City Commissioner Diana Leubert
Live Oak County(1 vote)
Judge Jim Huff
City ofGeorge West
Johnnie Berlanga
City ofThree Rivers
Councilman Murrell Foster
VIII

Governing Board and Executive Staff,Continued
(01/01/2015- 12/31/2015)
Nueces County(16 votes)
Judge Loyd Neal
Mr.M.Brent Ocker
Commissioner MikePusley
Commissioner Oscar Ortiz
Commissioner Joe Gonzalez
Commissioner Brent Chesney
Mr.Dale Atchley
ChiefDeputy John Galvan
Mr.Glen Sullivan
Mr.Tyner Little
Ms.Roxanna Himt
Ms.Elsa Saenz
Ms.Danielle Hale
Mr. Mike Biddle
City ofAgua Dulce
Mayor John Howard
City ofBishop
Council Member Lee Roy Kieschnick
City ofCorpus Christi
Mayor Nelda Martinez
Coimcil Member Colleen Mclntyre
Council Member Mark Scott
Council Member Lillian Riojas
Mr.Ron Olsen
ChiefRichie Quintero
Mr.Tom Tagliabue
City ofDriscoll
Ms.Isabel Chapa
City ofPort Aransas
Mayor Keith McMullen
City ofRobstown
Council Member Joey Rodriguez
Refugio County(1 vote)
Commissioner Ann Lopez
Town ofBayside
Mayor Tom Van Buren
Town ofRefugio
Mayor Joey Heard
Town of Woodsboro
Mayor Larry Jochetz
San Patricio County(4 votes)
Judge Terry Simpson
Commissioner Fred Nardini
Commissioner Nina Trevino
Commissioner Alma Moreno
City ofAransasPass
Mayor Adan Chapa
City ofGregory
Covmcil Member Celestino Zambrano
City ofIngleside
Mayor Pete Perkins
City ofIngleside on the Bay
MayorPro Tem Jo Ann Ehmann
City ofMatbis
Mayor Ciri Villarreal
City ofOdem
Mayor Billy Huerta
City ofPortland
Mayor David Krebs
City ofSinton
Mayor William O.Moore
City ofTaft
Mayor Pete Lopez
IX

Governing Board and Executive Staff
ASSOCIATE MEMBERS-REPRESENTATIVES
PortofCorpus Christi Authority Mr.John Larue
South Texas Water Authority Ms.Carolla Serato
Nueces County Appraisal District Mr.Ronnie Canales
San Patricio Municipal Water District Ms.Rebecca Klaevermann
Nueces County Drainage District No.2 Mr.Julio Garcia,Jr.
Nueces County WCID No.3 Mr.John Hererro
Corpus Christi Metropolitan Planning Mr.JeffPollock
Organization
EXECUTIVE STAFF
Executive Director Mr.John P.Buckner
Director,Planning and Economic Development Mr.Richard M.Bullock
Director,Area Agency on Aging Ms.Betty M.Lamb
Director ofFinance Ms.Veronica A.Toomey

GovernmentFinance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Coastal Bend Council of Govenunents
Texas
Forits Comprehensive Annual
Financial Report
for the Fiscal YearEnded
December31,2014
Executive Director/CEO
XI

The Coastal Bend Council ofGovernments
11-County Region
Live Oak Refugio
Aransas
San Patricio
Jim
Wells
Duval
Nueces
Kleberg
Brooks
Kenedy
Coastal Bend/State Planning Region 20
Area: 10,273 square miles
Population: 591,654
XIII

Collier,Johnson&woods,p.c.
CERTIFIED PUB T IC ACCOUNTANTS
555 N. Carancahua,Suite 1000
Corpus Christi,Texas 78401-0839
361-884-9347 • Fax 361-884-9422
www.cjw-cpa.com
INDEPENDENT AUDITOR'S REPORT
June 20,2016
Governing Board ofthe Coastal
Bend Council ofGovernments
Report on the Financial Statements
We have audited the accompanying financial statementsofthe governmentalactivities and each major
fund ofthe Coastal Bend Council ofGovernments as ofand for the year ended December 31,2015,and the
related notesto the financial statements,which collectivelycomprisethe Council's basic financial statements
as listed in the table ofcontents.
Management's Responsibilityfor the FinancialStatements
Management is responsible for the preparation and fair presentation ofthese financial statements in
accordance with accounting principles generally accepted in the United States ofAmerica;this includes the
design,implementation,and maintenance ofinternal control relevantto 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 audit. We
conducted our audit in accordance with auditingstandards generally accepted in the United States ofAmerica
and the standards applicable to financial audits contained in GovernmentAuditing Standards,issued by the
Comptroller General ofthe United States.Those standards require that we plan and perform the audittoobtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing proceduresto obtain auditevidence aboutthe amounts and disclosures
in the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment ofthe risks ofmaterial misstatement ofthe 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 ofthe financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose ofexpressing an opinion on the effectiveness ofthe entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonablenessofsignificantaccounting estimates made by management,as
well as evaluating the overall presentation ofthe financial statements.
We believe that the auditevidence we have obtained issufficientand appropriate to provide a basisfor
our audit opinions.

Opinions
In our opinion,the financial statements referred to above presentfairly,in all material respects,the
respectivefinancial position ofthe governmentalactivitiesandeach majorflindoftheCoastalBend Councilof
Governments as ofDecember 31,2015 and the respective changes in financial position and the respective
budgetarycomparison fortheGeneralFund and SpecialRevenueFund,forthe yearthenended inaccordance
with accounting principles generally accepted in the United States ofAmerica.
Other Matters
RequiredSupplementary Information
Accounting principlesgenerallyaccepted in the United StatesofAmericarequirethatthe management's
discussion and analysis on pages 5 through 12 be presented to supplementthe basic financial statements.Such
information,although not a part ofthe basic financial statements,is required by the Governmental Accounting
Standards Board, who considers it to be an essential part offinancial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedurestothe required supplementary information in accordance with auditingstandardsgenerallyaccepted in
the United States ofAmerica,which consisted ofinquiries ofmanagement about the methods ofpreparing the
informationandcomparingtheinformationforconsistencywith management'sresponsestoourinquiries,thebasic
financial statements,and other knowledge we obtained during our auditofthe basicfinancialstatements. Wedo
notexpressan opinion orprovideanyassuranceontheinformation becausethe limited proceduresdonotprovide
us with sufficient evidence to express an opinion or provide any assurance.
OtherInformation
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectivelycomprisetheCoastalBend CouncilofGovernments'basicfinancialstatements.Theintroductory
section,supplemental information,and the statistical information listed in thetableofcontentsare presented
for purposesofadditional analysis and are notarequired partofthe basicfinancialstatements. Theschedule
ofexpenditures offederal and state awards,pages 113 through 116,is presented for purposes ofadditional
analysis as required by Title 2 U.S. Code ofFederal Regulations(CFR)Part 200 Uniform Administrative
Requirements,CostPrinciples,andAuditRequirementsforFederalAwards,and the StateofTexas,Uniform
Grant ManagementStandards and is also not a required part ofthe basic financial statements.
Theschedulesofcapital assets used in the operation ofgovernmentalfunds,theschedule ofrevenues
and expenditures — budget and actual — general fund grant programs and the schedule ofexpenditures of
federaland stateawardsaretheresponsibilityofmanagementand werederivedfrom and relatedirectlytothe
underlying accounting and other records used to preparethe basicfinancialstatements.Such information has
been subjected to the auditing procedures applied in the audit ofthe basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accountingand otherrecords used to preparethe basicfinancialstatementsortothe basicfinancialstatements
themselves,and other additional procedures in accordance with auditingstandardsgenerally accepted inthe
United StatesofAmerica.In ouropinion,thesupplemental information and thescheduleofexpendituresof
federaland state awards isfairlystated in all materialrespects in relationtothefinancialstatementsasawhole.
Theintroductorysection and statisticalinformation have notbeensubjectedtotheauditingprocedures
applied in theauditofthe basicfinancialstatementsand accordingly,wedonotexpressan opinionorprovide
any assurance on them.

other Reporting Required by GovernmentAuditingStandards
In accordance with GovernmentAuditingStandards^ we have also issued our report dated June 20,
2016, on our consideration ofthe Council's internal control over financial reporting and our tests of its
compliance with certain provisionsoflaws,regulations,contractsand grantagreementsand othermatters.The
purpose ofthat report is to describe the scope ofour testing ofinternal control over financial reporting and
compliance and the results ofthattesting,and notto provide an opinion onthe internal control overfinancial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
GovernmentAuditingStandards and should be considered in assessing the results ofour audit.

Management's Discussion and Analysis
As managementofthe Coastal Bend Covmcil ofGovernments(the Council),we offer readers of
the Council's financial statements this narrative overview and analysis ofthe financial activities
ofthe Coimcil for the fiscal year ended December 31,2015. We encourage readers to consider
the information presented here in conjunction with additionalinformation that we have furnished
in our letter oftransmittal,which can be found on pages I - VIofthis report.
FinancialHighlights
Government-wide financial statements
• The Council's unrestricted net position increased in 2015 by $24,956. There were three
factors that contributed to the Council's increase in unrestricted net position.The Council
applied $47,975 in retirement plan forfeitures to its required contributions often percent.
The forfeitures consisted ofthe non-vested portion of employees, previously employed
with the Council,who withdrew their retirement contributions offive percent,as well as,
their vested portion. Another contributing factor to the Council's increase in net position
was due to the amoimt oflocal funds available for spending $105,203 and the amount
actually spent $87,304. However,the forfeitures $47,975 and the excess oflocal funds
$17,899 were offset by the underrecovery ofindirect costs of$42,504 leaving a balance
ofunspentfunds of$23,370.
• Ofthe Coimcil's total net position $1,360,450,35 percent or $479,479 is unrestricted and
65 percent or $880,971 is investment in capital assets. The Council's unrestricted net
position may be used to meetits ongoing obligation to citizens and creditors.
Governmentalfunds financial statements
• At year end,the Council's governmental funds reported combined ending fund balances
of$544,869,an increase of$23,561 from the prior year. The same contributing factors
which resulted in an increase inthe Council's unrestricted net position of$24,956,per the
government-wide financial statements, resulted in the increase in the combining fund
balances of$23,561 in the Council's governmentalfundsfinancial statements at year end.
In addition to the same contributing factors noted above, the Council's compensated
absences decreased by $1,395 at year end which do not require the use of current
financial resources.
• Approximately,81 percent ofthe combined ending fund balances,$439,656,is available
to meet the Council's current and future needs (unassigned fund balance). Of the
remainder,$14,507 is nonspendable(for prepaids),and $90,706 is assigned for matching
the administrative costs ofthe Texas Department on Aging and Disability grants and the
Economic Development Administration grant.In the 2015 budget,the Council projected

an increase in fund balance of$10,090. On a positive note, the actual increase in fund
balance $23,561 exceeded the projected by $13,471.
• As of the end ofthe current fiscal year, the unassigned fund balance of the Council's
generalfund of$439,656 represented 10.89% ofthe generalfund's total expenditures and
10.83% ofthe revenues.
Overview ofthe Financial Statements
This discussion and analysis are intended to serve as an introduction to the Council's basic
financial statements. The Council's basic financial statements are comprised of three
components: 1)government-wide financial statements,2)fund financial statements,and 3)notes
to the financial statements. This report also contains other supplementary information in
addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview ofthe Coxmcil'sfinances,in a manner similar
to a private-sector business.
The statement ofnetposition presents information on all ofthe Council's assets and liabilities,
with the difference between the two reported as netposition. Over time,increases or decreases
in net position may serve as a useful indicator ofwhether the financial position ofthe Council is
improving or deteriorating.
The statementofactivities presents information showing how the Council's netposition changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs,regardless ofthe timing ofrelated cashflows.
Thus,revenues and expenses are reported in this statementfor some itemsthat will only result in
cashflowsin future fiscal periods(e.g.,earned but unused vacation leave).
The government-wide financial statements illustrate the functions of the Council that are
principally supported by federal and state grants, memberships dues and supportive service fees
{governmentalactivities). The governmental activities ofthe Councilinclude health and welfare,
commimity and economic development, environmental protection, public safety, 9-1-1
emergency communications,and general government.
The govemment-wide financial statementsinclude only the Council itself(known astheprimary
government),because the Council has no componentunits.
The govemment-wide financial statementscan befound on pages 13-15 ofthisreport.
Fund financial statements. Afund is a grouping ofrelated accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The
Council,like other state and local governments,usesfund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All of the funds of the Council are
governmentalfunds.

Governmentalfunds. Governmentalfunds are used to accountfor essentially the same functions
reported as governmental activities in the government-wide financial statements. However,
unlike the government-wide financial statements, governmental fund financial statement focus
on near-term inflows and outflows ofspendable resources, as well as on balances ofspendable
resources available at the end ofthe fiscal year. Such information may be useful in evaluating
the Coimcil's near-term financing requirements.
Because the focus ofgovernmentalfunds is narrower than that ofthe government-wide financial
statements,it is useful to compare the information presented forgovernmentalfunds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the Council's near-term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmentalfunds and governmentalactivities.
The Council maintains two individual governmental funds. Information is presented separately
in the governmental funds balance sheet and in the governmental funds statement ofrevenues,
expenditures, and changes in fund balances for the general fund and the special revenue fund,
both ofwhich are considered to be majorfunds.
The Council adopts an annual appropriated budgetfor its general fund and special revenue fund.
A budgetary comparison statement has been provided for the general fund and special revenue
fund to demonstrate compliance with this budget.
The basic governmentalfund financial statements can befoimd on pages 16-21 ofthis report.
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding ofthe data provided in the government-wide and fund financial statements.
The notesto the financial statements can be found on pages 23-34 ofthis report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. The Council's assets exceeded liabilities and deferred inflows ofresources,
by $1,360,450 atthe close ofthe mostrecentfiscal year.
Of the Council's net position, 65% reflects its investment in capital assets (e.g., vehicles,
equipment and software). The Council uses these capital assets to dispatch 9-1-1 calls to the
appropriate emergency response units and to make informed decisions by visualizing critical
information on a map through the ArcGIS mapping software. In 2015,the Coimcil purchased a
MapFlex 9-1-1 Server hosted at San Patricio Sheriff Office and a MapSAG software license for
internal use by the 9-1-1 Network Department. In addition, the Coimcil purchased from Time
Warner Cable Ethernet Virtual Private Line(EYPL)service which provides essential high-speed
fiber optic internet connectivity for Kingsville Police Department's and Kleberg County Sheriff
Office's Public Safety Answering Points(PSAPS).

These assets are notavailable forfuture spending.There is notdebtoutstanding on resources
used to acquire these assets.
Coastal Bend Council ofGovernment's
Net Position-Governmental Activities
Variance
Positive
2015 2014
Current and other assets $ 1,485,063 $ 1,151,627 $ 333,436
Capital assets 880,971 1,060,368 (179,397)
Total assets 2,366,034 2,211,995 154,039
Long-term liabilities outstanding 65,390 66,785 1,395
Other liabilities 940,194 630,319 (309,875)
Total liabilities 1,005,584 697,104 (308,480)
Net position:
Investmentincapital assets 880,971 1,060,368 (179,397)
Unrestricted 479,479 454,523 24,956
Total netposition $ 1,360,450 $ 1,514,891 $ (154,441)
At the end ofthe current fiscal year,the Council is able to report positive balances in the two
categories of net position,for the government as a whole. The same situation held true for the
prior fiscal year.
The Council's net position decreased by $154,441 during the current fiscal year. The net
position decreased,from the prior year,was primarily attributable to the depreciation expense of
$455,687 exceeded the capital asset additions of $276,290 by $179,397. This amount was
reduced bythe unspentfunds at year end of$23,370.

Coastal Bend Council ofGovernment's
Changesin NetPosition-Governmental Activities
Variance
Positive
2015 2014
Revenues:
Program revenues:
Chargesfor services $ 1,865,051 $ 2,315,271 $ (450,220)
Operating grants and
contributions 3,905,091 3,703,815 201,276
General revenues:
Interest on deposits 50 74 (24)
Other 48,131 8,655 39,476
Total revenues 5,818,323 6,027,815 (209,492)
Expenses:
General government 43,195 (394) (43,589)
Health and welfare 3,328,745 3,126,540 (202,205)
Community andeconomic
development 65,967 83,644 17,677
Environmental protection 174,444 170,441 (4,003)
Public safety 404,883 403,166 (1,717)
9-1-1 emergency
communications 1,955,530 1,292,133 (663,397)
Total expenses 5,972,764 5,075,530 (897,234)
Increase(Decrease)in net
position (154,441) 952,285 (1,106,726)
Netposition- beginning 1,514,891 562,606 952,285
Netposition- ending $ 1,360,450 $ 1,514,891 $ (154,4411

Governmental aetivities. Governmental activities'revenues and expenses were matched as noted
in the graph below. In the general government,revenues include indirect costs reimbursements.
Expenses and Program Revenues-Governmental Activities
3,500,000
3,000,000- expenses
□ program revenues
2,500,000
2,000,000
1,500,000-
1,000,000-
500,000-
General government Health and welfare Commumiv and economic Environmental protection Public safety
development
9-1-1 emergency
communication
Revenues by Source - Governmental Aetivities
other Revenue
arges
Operating grants
and contributions
10

Financial Analysis ofthe Government's Funds
As noted earlier, the Council uses fund accoxmting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmentalfunds. The focus ofthe Council's governmentalfunds is to provide information
on neeir-term inflows,outflows,and balances ofspendable resources. Such information is useful
in assessing the Council's financing requirements. In particular, unassignedfund balance may
serve as a useful measure ofa government's net resources available for spending at the end of
the fiscal year.
As of the end of the current fiscal year, the Council's general funds reported an ending fund
balances of$544,869,an increase of$23,561 in comparison with the prior year. Approximately
81 percent ofthis total amount$439,656 constitutes unassignedfund balance,which is available
to satisfy the minimum fund balance, in accordance with the Council's General Fund Balance
Reserve Policy,which states thatthe Council shall maintain afund balance amountequivalentto
twenty-five percent ofits operating expenditures reported in current year's budget document to
avoid the possibility ofcash flow problems due to revenue earned but unavailable.The minimum
general fund balance amount at year end is $482,987. The nonspendable fund balance of
$14,507is not available for new spending;and the assigned fund balance of$90,706is to satisfy
grant agreement matching provisions and is used to satisfy the general fund minimum balance
requirements. As a measure of the general fund's liquidity, it may be useful to compare
unassigned fund balances to total fund expenditures. Unassigned fund balances represents 10.89
percentoftotal generalfund expenditures.
GeneralFund Budgetary Highlights
There was one amendmentto the original budget of$8,000. This increase was for the additional
appropriations needed to secure the purchase ofa new Council vehicle.The actual increase in the
fund balance at year end exceeded the budgetary amount by $13,471.
Capital Asset Administration
Capital assets. The Council's investment in capital assets for its governmental activities as of
December 31,2015,amormts to $880,971(netofacciunulated depreciation). This investmentin
capital assets includes vehicles, equipment, and software,for the 9-1-1 system and emergency
management's first responders. The decreeise $179,397 in capital assets was due to the
depreciation expense of$455,687 where asthe capital outlays were $276,290.
11

Coastal Bend Council of Government's
Capital Assets
(Net ofDepreciation)
Governmental Activities
Variance
Positive
2015 2014 (Negative)
Equipmentand Software $ 880,971 $ 1,060,368 $ (179,397)
Additional information on the Council's capital assets can be found in note Ill.C on page 30 of
this report.
2016 Operating and Pass-through Budgets
The Council's 2016 adopted budget reflects an estimated increase in total fund balance of
$45,172 in the general fund. The general fund's budgetary expenditures,for federal and state
programs,decreased slightly by 3.5% compared to actual 2015 expenditures.
The funding levels for all programs could change if additional funding becomes available. This
wasin accordance with the appropriated funding levels atthe time the budget was prepared.
Requests for Information
This financial report is designed to provide a general overview ofthe Coastal Bend Council of
Governments' finances for all those with an interest in the government's finances. Questions
concerning any of the information provided in this report or requests for additional financial
information should be addressed:
Office ofthe Director ofFinance
2910 Leopard Street
Corpus Christi, Texas 78408
Telephone Number; (361)883-5743 ext.5327
Email Address: veronicafS)fin.cbcog98.org
12

STATEMENT OF NET POSITION
DECEMBER 31,2015
Primary
Government
Governmental
Activities
ASSETS
Cash and cash equivalents (Note III. A.) $ 1,102,325
Receivables(Note III. B.) 365,460
Prepaid items 17,278
Capital assets(net ofaccumulated
depreciation)(Note III. C.) 880,971
Total assets 2,366,034
LIABILITIES
Accounts payable and other current
liabilities 158,337
Contractors payable 349,082
Unearned revenue(Note III. B.) 432,775
Compensated absences(Note III. F.):
Current 40,470
Noncurrent 24,920
Total liabilities 1,005,584
NET POSITION
Investment in capital assets 880,971
Unrestricted 479,479
Total net position $ 1,360,450
The notes to the financial statements are an integral part ofthis statement.
13

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31,2015
Indirect
Functions/Programs Expenses
Primary sovernment: Expenses Allocation
Governmental activities:
General government $ 400,583 $ (357,388)
Health and welfare 3,129,417 199,328
Community and economic development 54,233 11,734
Environmental protection 154,111 20,333
Public safety 363,053 41,830
9-1-1 emergency communications 1,871,367 84,163
Total governmental activities 5,972,764 -
Total primary government $ 5,972,764 $
The notes to the financial statements are an integral partofthis statement.
14

Program Revenues
Net(Expense)Revenue and
Operating Primary Government
Chargesfor Grants and Governmental
Services Contributions Activities
$ 105,203 $ $ 62,008
- 3,267,795 (60,950)
-
65,967 -
- 174,444 -
- 396,885 (7,998)
1,759,848 -
(195,682)
1,865,051 3,905,091 (202,622)
$ 1,865,051 $ 3,905,091 (202,622)
General revenues:
Other Revenue
Interest on deposits
Miscellaneous Income
Total general revenues
Change in net position
Net position - beginning
Net position - ending
47,975
50
156
48,181
(154,441)
1,514,891
$ 1,360,450
15

BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER31,2015
Total
9-1-1 Governmental
General Program Funds
ASSETS
Cash and cash equivalents(Note III. A.) $ 667,254 $ 435,071 $ 1,102,325
Due from otherfunds(Note III.D.) -
25,612 25,612
Receivables(Note III.B.) 320,838 44,622 365,460
Prepaid items 14,507 2,771 17,278
Total assets 1,002,599 $ 508,076 $ 1,510,675
LIABILITIES AND FUND BALANCE
Liabilities
Accounts payable 19,102 139,235 158,337
Contractors payable 349,082 - 349,082
Unearned revenue(Note III.B.) 63,934 368,841 432,775
Due to other funds(Note III.D.) 25,612 -
25,612
Total liabilities 457,730 508,076 965,806
Fund balances
Nonspendable 14,507 - 14,507
Assigned 90,706 - 90,706
Unassigned 439,656 - 439,656
Total fund balances 544,869 -
544,869
Total liabilities and fund balances $ 1,002,599 $ 508,076 $ 1,510,675
16

RECONCILATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
DECEMBER 31,2015
Totalfund balance- total governmentalfunds $ 544,869
Amounts reported for governmental activities in the statement ofnet position are different because:
Capital assets used in governmental activities are not currentfinancial resources
and therefore are not reported in the governmentalfunds. The cost ofthe assets
is $1,589,748 and the accumulated depreciation is $708,777. 880,971
Compensated absences are not due and payable in the current period and therefore are not
reported in funds. (65,390)
Net position ofgovernmental activities $ 1,360,450
17

STATEMENT OF REVENUES, EXPENDITURES AND CHANGESIN FUND BALANCES
GOVERNMENTAL FUNDS
Revenues:
DirectFederal grants:
U.S.DepartmentofCommerce
State ofTexas and FederalPass-through grants:
Texas DepartmentofAging and Disability Services
Office ofthe Governor,CriminalJustice Division
Department ofRural Community Affairs
Commission on Environmental Quality
Governor's Division ofEmergency Management
Office ofthe Governor,Homeland Security Grants Division
Commission on State Emergency Communications
Totalfederal and state grants
Supportive services fees
Membership dues
Other Revenue
Interest on deposits
Miscellaneous income
Total revenues
Expenditures:
Current:
Health and welfare
Community and economic development
Environmental protection
Public safety
9-1-1 emergency communications
General government
Underrecovery ofindirect costs
Total expenditures
Excess ofrevenues over expenditures
Net change in fund balances
Fund balances,beginning ofyear
Fund balances,end ofyear
General 9-1-1 Program
Total
Governmental
Funds
$ 57,704 $ $ 57,704
3,250,914 _
3,250,914
128,394 - 128,394
8,263 - 8,263
174,444 - 174,444
262,209 -
262,209
6,282 6,282
-
1,759,848 1,759,848
3,888,210 1,759,848 5,648,058
16,881 _
16,881
105,203 - 105,203
47,975 - 47,975
35 15 50
156 - 156
4,058,460 1,759,863 5,818,323
3,328,745 3,328,745
65,967 - 65,967
174,444 - 174,444
401,715 -
401,715
- 1,759,863 1,759,863
21,524 - 21,524
42,504 - 42,504
4,034,899 1,759,863 5,794,762
23,561 23,561
23,561 - 23,561
521,308 _
521,308
$ 544,869 $ $ 544,869
The notes to the financialstatements are an integral part ofthis statement.
18

RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
Net change in fund balances- governmentalfund $ 23,561
Amount reported for governmental activities in the statementofactivities is different because:
Total governmentalfunds reports capital outlays as expenditures. However,in the statement
ofactivities the cost ofcapital assets is allocated over their estimated useful lives and
reported as depreciation expense. In the current period,capital outlays were $276,290
and depreciation was$455,687. (179,397)
Some expenses reported in the statement ofactivities do not require the use ofcurrent
financial resources and,therefore are not reported as expenditures in governmental
funds.Compensated absences decreased by $1,395. 1,395
Change in net position ofgovernmental activities $ (154,441)
19

GENERAL FUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGESIN FUND BALANCE s
BUDGET AND ACTUAL
YEAR ENDED DECEMBER31,2015
Variance with
FinalBudget-
Original Final Amended Positive
Budget Budget Actual Amounts (Negative)
Revenues:
Direct Federal grants:
U.S.DepartmentofCommerce $ 60,000 $ 60,000 $ 57,704 $(2,296)
State ofTexas and FederalPass-through grants:
Texas Department ofAging and Disability Services 3,187,985 3,187,985 3,250,914 62,929
Office ofthe Governor,Criminal Justice Division 184,511 184,511 128,394 (56,117)
Department ofRural Community Affairs 12,094 12,094 8,263 (3,831)
Commission on Environmental Quality 176,140 176,140 174,444 (1,696)
Governor*s Division ofEmergency Management 231,376 231,376 262,209 30,833
Office ofthe Governor,Division ofEmergency Management - - 6,282 6,282
Totalfederal and state grants 3,852,106 3,852,106 3,888,210 36,104
Supportive services fees 7,650 7,650 16,881 9,231
Membership dues 105,432 105,432 105,203 (229)
Other Revenue - - 47,975 47,975
Interest on deposits - - 35 35
Miscellaneous Income - - 156 156
Total revenues 3,965,188 3,965,188 4,058,460 93,272
Expenditures:
Current:
Health and welfare 3,255,177 3,255,177 3,328,745 (73,568)
Community and economic development 87,094 87,094 65,967 21,127
Environmental protection 176,140 176,140 174,444 1,696
Public safety 415,887 415,887 401,715 14,172
General government 12,800 20,800 21,524 (724)
Underrecovery ofindirect costs - - 42,504 (42,504)
Total expenditures 3,947,098 3,955,098 4,034,899 (79,801)
Excess ofrevenues over expenditures 18,090 10,090 23,561 13,471
Netchange in fund balances 18,090 10,090 23,561 13,471
Fund balance,beginning ofyear 521,308 521,308 521,308 -
Fund balance,end ofyear $ 539,398 $ 531,398 $ 544,869 $13,471
20

SPECIAL REVENUE FUND - 9-1-1 PROGRAM
STATEMENT OF REVENUES,EXPENDITURES AND CHANGESIN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31,2015
Budgeted Amounts
Netchange in fund balances
Fund balance,beginning ofyear
Fund balance,end ofyear
Variance with
Budget
Positive
Original Final Actual Amounts (Negative)
Revenues:
State grants- Commission on State
Emergency Communications $ 1,494368 $ 1,759,848 $ 1,759,848 $
Interest on deposits - -
15 15
Total revenues 1,494,368 1,759,848 1,759,863 15
Expenditures:
Direct salaries and release time 250,865 250,865 244,305 6,560
Indirect costs allocated 86,423 86,423 84,163 2,260
Health,Retirement,& Other Benefits 79,255 79,255 79,199 56
Rental Space 16,054 16,054 17,955 (1,901)
Utilities 4,482 4,482 3,459 1,023
Accounting & Payroll Services 20,891 20,891 23,714 (2,823)
Auditing Services 5,469 5,469 5,469 -
Dues and subscriptions 900 900 556 344
Maintenance and repairs 211,803 186,795 186,795 -
Office supplies/furniture/software 10304 22,971 22,971 -
Travel 14,518 14,518 19,702 (5,184)
Telephone 335365 581,992 584,380 (2388)
Postage and freight 400 400 571 (171)
Reproduction costs 513 513 529 (16)
Contract Services 2,056 198,365 198,365 -
Insurance 2,388 2,388 3,043 (655)
Training and Public Awareness 29,195 35,131 32,754 2,377
PSAP Supplies 32,550 5,061 5,061 -
Database Maintenance 198,559 46,111 46,111 -
Database Costs 44,618 - - -
ManagementInformation Costs - 53,504 53,504 -
PSAP Room Prep 716 716 - 716
Equipment 147,044 147,044 147,257 (213)
Total expenditures 1,494,368 1,759,848 1,759,863 (15)
Excess ofrevenues over(under)expenditures _ . _
21

Notes to the Financial Statements
December 31,2015
I. Summary ofSignificant Accounting Policies
A. Reporting entity
The Coastal Bend Council of Governments (the Cormcil) operates as a regional planning agency
underthe agreement dated November 1966 and subsequently amended,between member counties in
South Texas. The powers of the Council are granted and described in Chapter 391, Regional
Planning Commissions,and the Local GovernmentCode.
The membership of the Council consists of Aransas, Bee, Brooks, Duval, Jim Wells, Kenedy,
Kleberg, Live Oak,Nueces,Refugio, and San Patricio Counties, and various political jurisdictions
within these counties. The Board ofDirectors,who are elected each year by the politicaljurisdiction
they represent,govemsthe Council.
The basic financial statements of the Council have been prepared in conformity with accounting
principles generally accepted in the United States of America(GAAP)as applied to governmental
units. The Governmental Accoimting Standards Board(GASB)is the accepted standard setting
bodyfor establishing governmental accounting and financial reporting principles.
As required by generally accepted accounting principles, these financial statements solely present
the Council's financial activities. No other entities are included in the Council's reporting entity
because no other entities have significantoperational orfinancial relationships with the Council.
B. Government-wide and fund financial statements
The govemment-wide financial statements (i.e., the statement of net position and the statement of
activities)report information on all ofthe nonfiduciary activities ofthe primary government. As a
general rule,the effect ofinterfimd activity has been eliminated from the govemment-wide financial
statements. All internal balances in the statement of net position have been eliminated.
Governmentalactivities are supported by membership dues,and federal and state grants.
The govemment-wide Statement of Activities demonstrates the degree to which both direct and
indirect expenses of the various functions and programs of the Cormcil are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function or
identifiable activity. Indirectexpensesfor administrative overhead are allocated among the functions
and activities using a full cost allocation approach and are presented separately to enhance
comparability ofdirect expenses between governments that allocate direct expenses and those that
do not Program revenues include 1) charges to customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a function and 2) grants and
contributions that are restricted to meeting the operational requirement of a particular function.
Other items not properly included among program revenues are reported instead as general
revenues.
23

December 31,2015
Major individual governmental funds are reported as separate columns in the fund financial
statements.
C. Measurementfocus,basis ofaccounting,and financialstatement presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis ofaccounting. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless ofthe timing ofrelated cash flows. Membership
dues are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenues as soon as all eligibility requirements imposed by the provider have been
met.
Governmental fund financial statements are reported using the current financial resources
measurementfocus and the modified accrual basis ofaccounting. 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 ofthe current period.
For this purpose,the Council considers revenues to be available ifthey are collected within 90 days
of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred. However, expenditures related to compensated absences and claims and judgments are
recorded only when paymentis due.
General fund grant resources and supportive services fees are susceptible to accrual and recognized
as revenues to the extent ofqualifying expenditures recorded for the individual programs since the
Council is only reimbursed for qualifying expenditures incurred for grant and contract purposes.
Membership dues become measurable and available when cash is received by the Council and are
recognized as revenue atthattime.
The Council reportsthefollowing major governmentalfunds:
The general fund is used to account for all financial resources ofthe Council not accormted for in
other funds. The general fund's financial resources consist primarily ofresources that are restricted
to expenditures for specified grant purposes. These restricted resources are not accounted for in a
specialrevenuefund becausethe Councilis notlegally or contractually required to maintain separate
funds and the applicable grant requirements were satisfied through maintaining separate accounts
within the generalfund.
The 9-1-1 network program accoimts for the activities related to maintaining the 9-1-1 equipment
and databases needed to dispatch 9-1-1 calls and is funded by the monthly .50 per access line
charged to both land and wireless line. Access line is collected by the telephone companies and
remitted to the State ofTexas Commission on State Emergency Communications who then remits it
to the Council.
24

December 31,2015
RecentAccountingPronouncement
GASB68-Accovmting and financialreporting forPensions,an amendmentofGASB StatementNo.27,
replacesthe requirementsofStatements No.27and No.50related to pension plansthatare administered
through trusts and equivalent arrangements. The requirements ofStatements No.25 and No.50 remain
applicable to pension plansthatare notadministered astrusts or equivalent arrangements.
GASB 71 - Pension Transition for Contributions Made Subsequent to the Measurement Date, an
amendment ofGASB Statement No.68,requires the provisions to be applied simultaneously with the
provisions ofStatementNo.68.
GASB 68 and GASB 71 were implemented in the year ended December 31,2015 and did not have an
impact on the Council's financial statements, because the Council's pension plan is a defined
contribution plan.
D. Assets,liabilities,deferred inflows ofresources and net position or equity
1. Depositsandinvestments
The government's cash and cash equivalents are considered to be cash on hand,demand deposits,
and short-term investments with original maturities of three months or less from the date of
acquisition.
Statutes authorize the Covmcil to invest funds only in public fund investment pools meeting the
requirements ofSections 2256.016 — 2256.019ofthe Public FundsInvestment Act.
Publicfundsinvestment poolsin Texas("Pools")are established underthe authority ofthe Interlocal
Cooperation Act,Chapter79ofthe Texas GovernmentCode,and are subjectto the provisions ofthe
Public FundsInvestment Act(the"Act"),Chapter 2256 ofthe Texas Government Code. In addition
to other provisions ofthe Act designed to promote liquidity and safety ofprincipal,the Actrequires
Pools to: 1)have an advisory board composed ofparticipants in the pool and other persons who do
not have a business relationship with the pool and are qualified to advise the pool; 2) maintain a
continuous rating ofno lowerthan AAA or AAA-m or an equivalentrating by atleast one nationally
recognized rating service; and 3)maintain the market value ofits underlying investment portfolio
within one halfofone percent ofthe value ofits shares. Texpool is rated an AAA-m money market
fund by Standard &Poor's.
The Covmcil's investments in Pools are reported at share value since they are 2a7-like. A 2a7-like
pool is one that is not registered with the Securities and Exchange Commission ("SEC") as an
investment company, but nevertheless has a policy that it will, and does, operate in a manner
consistent with the SEC's Rule 2a7 ofthe Investment Company Act of 1940. The fair value ofthe
poolsisthe same asthe value within the pool.
25

December 31,2015
Note III.A.includes detail information related to the Council's actual deposits and investments.
2. Receivablesandpayables
All outstanding balances betweenfunds are reported as"due to/from other funds."
3. Prepaiditems
Certain payments to vendors reflect costs applicable to the future accounting periods and are
recorded as prepaid items in both govemment-wide and fund financial statements.
4. Capitalassets
Capital assets, which include vehicles and equipment,and software,are reported in the govemment-
wide financial statements. Capital assets are defined by the Council as assets with an initial,
individual cost of$5,000 or more and an estimated useful life in excess oftwo years. Such assets
are recorded atcostifpurchased or constracted. Donated capital assets are recorded at estimated fair
market value atthe date ofdonation.
The costs ofnormal maintenance and repairs that do not add to the value ofthe asset or materially
extend assets lives are notcapitalized.
Vehicles, equipment and software are depreciated using the straight-line method over estimated
useful lives ofthree to seven years. The Council revised its estimated useflil life for vehicles from
three years to seven years due to the number of years the Council retains its vehicles beyond its
useful life for use within the city limits. Rental vehicles are used after the useful life ofthe vehicles
for businesstrips outside ofthe city limits.
The nonrecurring costs for the installation of high-speed fiber optic internet service are being
amortized overthree years.Thisisthe useful life ofthe equipment associated with the service.
5. Compensatedabsences
It is the Council's policy to permit employees to accumulate earned but imused vacation and sick
pay benefits. There is no liability for unpaid accumulated sick leave since the Council does nothave
a policy to pay any amounts when employees separate from service with the Council. All vacation
pay is accrued whenincurred in the govemment-widefund financial statements. A liabilityforthese
amounts is reported in governmental funds only ifthey have matured,for example as a result of
employee resignations and retirements.
26

December 31,2015
6. Long-term obligations
In the government-wide financial statements, long-term obligations related to governmental
activities are reported as liabilities in the statementofnet position.
7. Fund balances
Fund Balance Classifications:
The nonspendable fund balance include the portion ofnet resources that cannot be spent because
oftheir form or because they must be maintained intact. Resources notin spendable form include
prepaid items.
The restrictedfund balance includes net resources that can be spent only for the specific purposes
stipulated by constitution, external resource providers(creditors, grantors, contributors),laws and
regulations ofother governments,orthrough enabling legislation.
The committed fund balance includes spendable net resources that can only be used for specific
purposes pursuant to constraints imposed by formal Council resolutions no later than the close of
the fiscal year. Those constraints remain binding unless removed or changed in the same manner
employed to previously committhose resources.
The assignedfund balance includes amountsthat are constrained bythe Coimcil'sintentto be used
for specific purposes,but are neither restricted nor committed. The Board ofDirectors,through a
resolution,named the Executive Director asthe official authorized to assign funds.
The Council's grantagreement with the Texas Departmenton Aging and Disability requires a25%
match and the Economic Development Administration grant agreement requires a 20% match.
The amount of $90,706 was reported as assigned fund balance authorized by the Coxmcil's
Executive Director.
The unassigned fund balance represents spendable net resources that have not been restricted,
committed,or assigned to specific purposes.
When expenditures are incurred for purposes noted in the unrestricted fund balances
classifications,the order ofspending is first committed fund balance,then assigned fund balance,
and last ofall,unassigned fund balance.
8. Minimum FundBalance Policy
It is the desire of the Council to maintain adequate General Fund fund balance to maintain
liquidity. The Council heis adopted a financial standard to maintain a General Fimd minimum
fimd balance of25%ofbudgeted expenditures. The Council has metthe minimum fund balance at
year end.
27

December 31,2015
II. Stewardship,compliance,and accountability
A. Budgetary information
The Council's annual budget is a management tool that assists its users in analyzing financial
activity for its calendar year. The Board ofDirectors adopted a 2015 appropriated budget prepared
on the modified accrual basis of accounting for the general fund and special revenue fimd.
Budgetary comparisons presented for the generalfund and special revenue fund in the governmental
fimd financial statements are in accordance with (GAAP). All annual appropriations lapse at
calendar year end. The Board ofDirectors approvesany amendmentsto the budget.
The appropriated budgetis prepared byfund,function and department. Departmentheads may make
transfers of appropriations within a function. The legal level of budgetary control is the function
level. There were no amendments made to the budget.
The Council's primary general fimd funding sources are federal and state grants and local contracts,
which have fiscal periods that may or may not coincide with the Coimcil's calendar year. These
grants and contracts normally are for a twelve-month period; however, they can be awarded for
periods shorter or longer than twelve months. Because ofthe Council's dependency on federal,state
and local budgetary decisions,the revenue budget is based upon the best available information as to
potential sources offunding. The Council's generalfimd annual budget differsfrom that ofa city or
county governmentin two respects: (1)the uncertain nature ofgrant and contract awardsfrom other
entities and (2) conversion of grant and contract budgets to a calendar year basis. The resultant
annual budgets are subjectto constantchange within the calendar year due to:
* Increase/decrease in actual grantor contractawards from those estimated;
* Changesin grantor contract periods;
* Unanticipated grantor contractawards notincluded inthe budget;and
* Expected grant or contract awards,which fail to materialize.
B.Excess ofexpenditures over appropriations
For the year ended December 31, 2015, expenditures exceeded budget at the function level as
follows:
Fund/Ftmction Excess
General Fund:
Health and Welfare $ 73,568
The over expenditures in the health and welfare were due to an increase in Title III services for
nutrition,transportation,personal assistance,respite care,health maintenance,and residential repairs
which werefunded with additional grantrevenues.
28

December 31,2015
III. Detailed notes on allfunds.
A. Deposits and investments
Deposit and InvestmentRisk Disclosures
Custodial credit risk - Deposits. Custodial credit risk is the risk that in the event ofa bank failure,
the government's deposits may not be returned to it. The Coimcil's deposits at year-end were
entirely insured by federal depository insurance or were collateralized with securities held by the
Council's agent in the Coimcil's name. This is in compliance with the Council's policy. Cash
deposits atDecember 31,2015,were $651,176.
Pool investments held in TexPool are not subject to custodial credit risk because they are not
evidenced by securitiesthatexistin physicalor book entryform. The carrying amountofTexPoolis
$451,149,which is included in cash and cash equivalents and due on demand.
B. Receivables and unearned revenues
Receivables asofyear-end forthe Councilindividual majorfunds are asfollows:
Special
Receivables: General Revenue
Duefrom state government $ 320,838 $ 44,622
Governmental funds delayed revenue recognition in connection with resources that have been
received, but not yet earned. At the end of the current fiscal year, the various components of
unearnedrevenue reported inthe governmentalfunds were asfollows:
Unearned revenue.ElderlyPrograms $ 19,172
Unearned revenue,9-1-1 Program 368,851
Unearned revenue.OtherPrograms 24,857
Unearned conference/seminar deposits 19,895
Total unearned revenuefor governmentalfunds $ 432.775
In the governmental-wide financial statements,thisrevenue is unavailable and recorded as unearned
revenue.
29

December 31,2015
C. Capital assets
Capital asset activity for the year ended December 31,2015 was asfollows:
Primary Government
Beginning
Balance Increases Decreases Ending Balance
Governmental Activities
Capital assets,being depreciated:
Vehicles $ 29,940 $ 20,033 $ (29,940) $ 20,033
Equipment&Software 1,029,682 119,483 -
1,149,165
Nonrecurring costs for the 9-1-1
system 283,776 136,774 -
420,550
Total capital assets being
depreciated $ 1,343,398 $ 276,290 $ (29,940) $ 1,589,748
Less accumulated depreciationfor
Vehicles (29,940) (596) 29,940 (596)
Equipment&Software (237,011) (327,686) - (564,697)
Nonrecurringcosts for tiie 9-1-1
system (16,079) (127,405) - (143,484)
Total accumulationdepreciation (283,030) (455,687)
Total capital assets,being
depreciated,net $ 1,060,368 $ (179,397) $
29,940 (708,777)
$ 880,971
30

December 31,2015
Depreciation expense wascharged to functionsofthe primary governmentasfollows:
Public Safety ^ 3,167
9-1-1 emergency communications 451,924
General government
Total depreciationexpense-governmentalactivities 455,687
D. Interfund receivables and payables
The composition ofinterfund balances asofDecember31,2015,is asfollows:
Receivable Fund Pavable Fund Amoimt
9-1-1 Network Fund General Fund $ 25,612
Interfund balances are used to accountfor pooled cash transactions.
E. Leases
The Council leases 12,500 square feet of office/storage space imder a noncancellable-operating
lease, which expires on August 31,2016. The rental expense relating to this was $87,000 in 2015.
The future minimum lease payments for this lease which includes the office/storage space are as
follows:
Year Ended December 31.
2016 $ 58,000
The Coimcil leases two copy machines under an operating lease, which expires on September 30,
2019. The lease can be cancelled for nonappropriations of funds with a 30 day advance written
notice. Total rental expense relating to this was $7,239 in 2015. The future minimum lease
paymentsfor this lease are asfollows:
Year Ended December 31.
2016 $ 7,239
2017 7,239
2018 7,239
2019 5,427
31

December 31,2015
F. Long-term obligations
The following is a summary oflong-term obligation transactions ofthe Council for the year ended
December 31,2015:
Balances Balances Due in
01-01-2015 Additions Reductions 12-31-2015 (11 Year
Compensated absences $66.785 $68.180 $69.575 $65.390 $40.470
The general fund pays for compensated absences. The special revenue fund reimburses
compensated absences viaa pre-determined release time rate charge.
IV.Other information
A. Risk management
The Council is exposed to various risks ofloss related to tort;theft of,damage to and destruction of
assets;errors and omissions;injuriesto employees;and natural disasters. These risks are covered by
an intergovernmental risk pool and commercial insurance purchased from independent third parties.
The Coimcil is an employer member ofthe Texas Municipal League(TML)Intergovernmental Risk
Pool,self-insurance fundsin which contributionsfrom membersare used to pay covered losses.
The TML Intergovernmental Risk Pool was established to formulate, develop, and administer a
program ofself-insurance fimds for political subdivisions ofthe State ofTexas to obtain lower costs
for workers' compensation, property and liability coverage. Annual contribution rates are
determined by the TML Intergovernmental Risk Pool Board ofDirectors. The Council pays armual
premiums to TML Intergovernmental Risk Pool for workers' compensation, property and liability
coverage. TML Intergovernmental Risk Pool will provide coverage to the Council up to the fund's
limited liability amounts,$2,000,000 for general liability and error and omissions, $1,025,000 for
automobile liability, actual cash value for auto physical damage, and $1,781,130 (flood and
earthquake)and $398,575(wind storm and hail)for real and personal property. There is no limited
liability amountfor workers' compensation coverage. The Council had no significant reductions in
insurance coverage as compared to its previous fiscal year and no settlement amounts that exceeded
insurance coverageforeach ofits pastthree fiscal years.
B. Allocation ofpersonnel costs and indirect costs
Salaries and related benefits are charged as either direct or indirect costs,based on actualtime spent.
Indirect costs are allocated to activities based on an indirect cost plan, which utilizes direct salaries
and release time charges asthe base for allocation.
32

December 31,2015
C. Central Service Cost Allocation Plan(CSCAP)
Central Service Cost Allocation Plan fairly allocates to the grants the administrative and finance
personnel costs associated with the processing of accounts payable, accounts receivable, payroll
processing, management advisory services, reproduction/mail outs, and other costs. The allocation
bases used are number of employees, number of accounts payable invoices processed and direct
hours.
D. Contingentliabilities
Amountsreceived or receivablefrom grantor agencies are subjectto audit and adjustmentby grantor
agencies. Any disallowed claims, including amounts already collected, may constitute a liability.
The amount,ifany,ofexpenditures,which may be disallowed by the grantor,cannot be determined
atthistime although the Coimcilexpects such amounts,ifany,to be immaterial.
E. Retirementsystem and pension plans
Coastal Bend Coimcil ofGovernments Monev Purchase RetirementPlan
The Board of Directors adopted the Coastal Bend Council of Governments Money Purchase
Retirement Plan (the 401 Qualified Plan). The plan is a defined contribution money purchase
retirement plan. The Council's administrator of the 401 Qualified Plan is ICMA (International
City/County Management Association) Retirement Corporation. The Council's fiduciary
responsibility under the plan is to remit employer and employee contributions to ICMA Retirement
Corporation monthlyonthe 15"^ day.
The Council and employee's obligation to contribute to the 401 Qualified Plan is based on the
Coastal Bend Council ofGovernments Money Purchase Retirement Plan agreement adopted by the
Board ofDirectors. All employees,exceptfor those part-time employees working less than 30hours
per week, with six months ofservice or more are eligible to participate in the 401 Qualified Plan.
All eligible employees must participate in the 401 Qualified Plan. The Council is required to
contribute on behalfofeach participant 10% ofearnings and participants are required to contribute
5% of earnings. Participants may retire beginning at age 55. Upon retirement date, all amounts
credited to such participant's accoxmt shall become distributable. The 401 Qualified Plan also
provides death and disability benefits. A participant is fully vested after 7 years of service for
retirement benefits; however, accumulated earnings must remain in the 401 Qualified Plan. The
Board of Directors established the provisions and contribution requirements of the 401 Qualified
Plan and the Board approves any subsequent amendments. The Council's total payroll for January
1,through December 31,2015 was $1,367,333 and its contribution was based on a covered payroll
of$1,245,340. The Council and employees made the required contribution from January 1 through
December 31,2015 amounting to $124,534 for the Council(10% ofcovered payroll)and $62,267
for employees(5%ofcovered payroll).
33

December 31,2015
Deferred Compensation Plan and Trust(ICMA)Plan
The Board of Directors established a deferred compensation plan, administered by the ICMA
(International City/County Management Association) Retirement Corporation and govemed by
Section 457 ofthe Internal Revenue Code. All assets are held in trust for the exclusive benefit of
plan participants and their beneficiaries,and the assets cannot be diverted to any other purpose. The
Council'sfiduciary responsibility under the ICMA Plan is to remitemployee contributions to ICMA
Retirement Corporation on a regular basis. The Council has no legal access to the plan assets. The
plan assets are not reported on the balance sheet because the assets are held in a custodial accoimt
due to a change in tax law.
34

Capital Assets Used In
The Operation Of
Government Funds

CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS
COMPARATIVE SCHEDULES BY SOURCE
DECEMBER 31,2015 AND 2014
2015 2014
Governmentalfunds capital assets
Vehicles
Equipment& Software
Nonrecurring costs for the 9-1-1 system
Less accumulated depreciation
$ 20,033
1,149,165
420,550
(708,777)
$ 880,971
$ 29,940
1,029,682
283,776
(283,030)
$ 1,060,368
Investment in governmentalfunds capital assets by source:
General Fund
Special revenue fund-9-1-1 Program
20,229
860,742
$ 880,971
$ 3,959
1,056,409
$ 1,060,368
37

CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION
DECEMBER 31,2015
Nonrecurring
Equipment costs for the
Function Vehicles & Software 9-1-1 system Total
General government $ 20,033 $ 17,225 $ $ 37,258
9-1-1 emergency communications - 1,131,940 420,550 1,552,490
Total governmentalfunds capital assets 20,033 1,149,165 420,550 1,589,748
Less accumulated depreciation:
General government 596 16,433 - 17,029
9-1-1 emergency communications - 548,264 143,484 691,748
596 564,697 143,484 708,777
Net governmentalfunds capital assets $ 19,437 $ 584,468 $ 277,066 $ 880,971
38

CAPITAL ASSETS USED IN THE OPERATIONS OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION
FOR THE YEAR ENDED DECEMBER31,2015
Function
Capital
Assets
1/1/2015 Additions Deductions
Capital
Assets
12/31/2015
General government $
47,165
1,296,233
$ 20,033
256,257
$ (29,940) $ 37,258
1,552,490
1,343,398 276,290 (29,940) 1,589,748
Accumulated depreciation:
General government
(43,206)
(239,824)
(3,763)
(451,924)
29,940 (17,029)
(691,748)
(283,030) (455,687) 29,940 (708,777)
$ 1,060,368 $ (179,397) $ $ 880,971
39

Supplemental Schedules:
Schedule ofRevenues and Expenditures-
Budgetand Actual-General Fund Grant
Programs
Schedule ofIndirect Costs
Schedule ofRelease Time

SCHEDULE OF REVENUES AND EXPENDITURES-
BUDGET AND ACTUAL- GENERAL FUND GRANTPROGRAMS
YEAR ENDED DECEMBER31,2015
Grant numbers:
Grant periods:
Budget
3131-571
01/01/2015-
07/31/2015
Actual
3131-571
01/01/2015 -
07/31/2015
Variance
Positive
(Negative)
Budget
3131
01/01/2015 -
04/30/2015
Actual
3131
01/01/2015 -
04/30/2015
Variance
Positive
Revenues:
Direct federal funds $ - $ - $ - $ - $ - $ _
State funds 36,206 36,206 44,709 49,376 4,667
CBCOG funds _ _ _ _
Localfunds - - - _ _
Total revenues 36,206 36,206 44,709 49,376 4,667
Operating expenditures:
Direct salaries and Paid time off - -
19,510 19,510 _
Indirect costs allocated - -
6,220 6,220 _
Health,Retirement& Other Benefits - -
5,303 5,303 _
Rental Space - -
1,640 1,640 _
Utilities - -
333 333 _
Training - - - _ _
Accounting&Payroll Services - -
2,076 2,076 _
Management Advisory Services - - -
78 (78)
Auditing Services - - - _
Dues and subscriptions - -
148 _
148
Advertisements& Recognitions - -
60 _
60
Printing and publications - - - _ _
Maintenance and repairs - - - _ _
Office supplies/furniture/software 159 159 1,268 1,268 _
Travel 465 465 2,561 2,561 .
Telephone - - -
938 (938)
Postage and freight - -
69 30 39
Reproduction costs - - -
82 (82)
Contract services 35,582 35,582 4,223 9,034 (4,811)
Insurance - -
311 303 8
Equipment - -
987 -
987
Total operating expenditures 36,206 36,206 44,709 49,376 (4,667)
Subcontractors expenditures:
Contract services - - _ _ _
Other expenditures - - - _ _
Totalsubcontractors expenditures - - - _ _
Total grantexpenditures $ 36,206 $ 36,206 $ - $ 44,709 $ 49,376 $ (4,667)
42

Budget Actual Budget Actual
3141 3141 Variance 3162 3162 Variance
01/01/2015- 03/01/2015- Positive 11/01/2015 - 11/01/2015 - Positive
12/31/2015 12/31/2015 (Negative) 12/31/2015 12/31/2015 (Negative)
$ - $ - $ - $ - $ - $
215,653 176,627 (39,026) - -
20,000 23 (19,977) 4,807 4,807
235,653 176,650 (59,003J^ 4,807 4,807
79,804 66,345 13,459
29,184 23,356 5,828 - -
26,042 22,215 3,827 - -
4,562 4,752 (190) - -
1,989 2,349 (360) - -
11,378 9,217 2,161 - -
431 341 90 - -
720 720 - - -
25 100 (75) - "
500
-
500
-
~
3,614 1,773 1,841 - -
5,000 5,227 (227) - -
3,264 3,927 (663) - -
31 32 (1) - -
520 613 (93) - -
68,300 35,348 32,952 4,807 4,807
289 335 (46) - "
235,653 176,650 59,003 4,807 4,807
.
_
$ 235,653 $ 176,650 $ 59,003 $ 4,807 $ 4,807 $
43 continued

SCHEDULE OF REVENUES AND EXPENDITURES-
BUDGET AND ACTUAL- GENERAL FUND GRANT PROGRAMS
Grant numbers: 3172 3172 Variance 6115 6115 Variance
Grant periods: 01/01/2015 - 01/01/2015 - Positive 01/01/2015 - 01/01/2015 - Positive
Revenues:
Direct federal funds $ 60,000 $ 57,704 $ (2,296) $ $ $
State funds - - - _ _ _
CBCOG funds 18,836 -
(18,836) - - _
Local funds - - -
6,563 6,563 -
Total revenues 78,836 57,704 (21,132) 6,563 6,563 -
Direct salaries and Paid time off 42,358 29,590 12,768 - _ _
Indirect costs allocated 16,165 10,194 5,971 _ _ _
Health,Retirement& Other Benefits 11,688 9,945 1,743 - _ _
Rental Space 1,758 1,503 255 - _ _
Utilities 604 751 (147) _ _ _
Training - - - - -
Accounting&Payroll Services 1,166 1,151 15 - - -
Management Advisory Services - - - - - -
Auditing Services 313 313 - - - _
Dues and subscriptions 360 360 - - - _
Advertisements& Recognitions 31 29 2 - - _
Printing and publications - - - - - _
Maintenance and repairs 19 18 1 - _ _
Office supplies/furniture/software 500 107 393 - - _
Travel 2,844 2,844 - - - -
Telephone 500 497 3 - _ _
Postage and freight 142 50 92 - - -
Reproduction costs 126 46 80 - - -
Contract services - 240 (240) - - _
Insurance 262 66 196 _ _ _
Equipment - - - - - -
Total operating expenditures 78,836 57,704 21,132 - _ _
Contract services - - -
6,563 6,563 _
Other expenditures - - - - - -
Totalsubcontractors expenditures - - -
6,563 6,563 _
Total grantexpenditures $ 78,836 $ 57,704 $ 21,132 $ 6,563 $ 6,563 $
44

01/01/2015- 01/01/2015- Positive 01/01/2015- 01/01/2015- Positive
$ - $ - $ - $ - $ - $
222,980 45,160 (177,820) 44,045 42,003 (2,042)
222,980 45,160 (177,820) 44,045 42,003 (2,042)
19,318 20,039 (721)
2,872 885 1,987 6,508 6,903 (395)
- - - 6,672 7,412 (740)
- - -
1,472 1,258 214
- - -
701 52 649
718 109 609 741 1,287 (546)
_ _ _
402 402 _
- - -
30 30 -
- - - -
8 (8)
_ _ _
595 5 590
- - -
221 2,769 (2,548)
- - - 1,505 521 984
- - -
326 114 212
- 5 (5) 53 68 (15)
18 3 15 231 242 (11)
- - -
4,961 216 4,745
- - -
309 677 (368)
3,608 1,002 2,606 44,045 42,003 2,042
219,372 44,158 175,214 - - -
219,372 44,158 175,214 - - -
$ 222,980 $ 45,160 $ 177,820 $ 44,045 $ 42,003 $ 2,042
45 continued

SCHEDULE OF REVENUES AND EXPENDITURES -
BUDGET AND ACTUAL - GENERAL FUND GRANT PROGRAMS
Grant numbers:
Grant periods:
Budget
8153
Actual
8153
01/01/2015- 01/01/2015 -
Variance
Positive
Budget
8154
Actual
8154
01/01/2015- 01/01/2015 -
Variance
Positive
Revenues:
Direct federal funds $ - $ - $ - $ - $ - $ -
State funds 11,165 14,296 3,131 118,837 118,838 1
CBCOG funds - - - - - -
Local funds - - - - - -
Total revenues 11,165 14,296 3,131 118,837 118,838 1
Direct salaries and Paid time off 2,666 2,063 603 38,072 37,637 435
Indirect costs allocated 914 711 203 13,144 12,966 178
Health,Retirement& Other Benefits 956 -
956 11,873 12,758 (885)
Rental Space - - - 1,348 1,888 (540)
Utilities - - -
853 695 158
Training - - - - - -
Accounting&Payroll Services 48 - 48 8,028 2,394 5,634
Management Advisory Services - - - 281 279 2
Auditing Services - - - 546 598 (52)
Dues and subscriptions - - - 1,000 25 975
Advertisements& Recognitions 5,973 11,512 (5,539) 5,074 4,014 1,060
Printing and publications - - - 151 -
151
Maintenance and repairs - - -
136 11 125
Office supplies/furniture/software 608 - 608 2,332 3,569 (1,237)
Travel - - - 2,004 2,201 (197)
Telephone - - - 252 350 (98)
Postage and freight - - - 22 35 (13)
Reproduction costs - 10 (10) 200 112 88
415 440 (25)
Insurance - - -
293 303 (10)
Equipment - - - - - -
Total operating expenditures 11,165 14,296 (3,131) 86,024 80,275 5,749
32,813 38,563 (5,750)
Other expenditures - - - - - -
Totalsubcontractors expenditures - - -
32,813 38,563 (5,750)
Total grant expenditures $ 11,165 $ 14,296 $ (3,131) $ 118,837 $ 118,838 $ (1)
46

01/01/2015- 01/01/2015- Positive 01/01/2015- 01/01/2015- Positive
$ - $ - $ - $ - $ - $
11,752 5,814 (5,938) 81,516 86,217 4,701
_ _ _
6,700 -
(6,700)
11,752 5,814 (5,938) 88,216 86,217 (1,999)
7,012 3,250 3,762 20,486 16,971 3,515
2,416 1,120 1,296 6,817 5,846 971
1,752 1,157 595 3,193 2,870 323
44 47 (3) 1,582 1,384 198
15 - 15 - 360 (360)
- - - - 87 (87)
223 216 7 2,794 2,455 339
- - -
52 52 -
- - -
1,087 11 1,076
_ _ _
186 17 169
- - - - 1,465 (1,465)
- - -
2,182 89 2,093
- - - 93 313 (220)
223 22 201 1,849 76 1,773
67 2 65 - 1 (1)
- - -
14,165 6,194 7,971
- - -
107 339 (232)
11,752 5,814 5,938 54,593 38,530 16,063
- - -
33,623 47,687 (14,064)
_ _ -
33,623 47,687 (14,064)
$ 11,752 $ 5,814 $ 5,938 $ 88,216 $ 86,217 $ 1,999
47 continued

CAFR2015-final

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