The Statement of Operations (STOP) is a compilation of various financial statements to provide a financial picture of the fair’s operational activities and capital expenditures.

The submission of an annual STOP maintains the fairs' eligibility to receive funds and is a requirement if the fair is utilizing state assets (B&P 19622). The information from the STOP is compiled in the STOP publication, which is a document that includes all STOP financial information by class size. Furthermore, the financial information in the STOP for the District Agricultural Associations (DAAs) is compiled into a set of financial statements and submitted to the State Controller's Office (SCO) for the annual Comprehensive Annual Financial Report (CAFR). The CAFR is a set of governmental financial statements comprising the financial report of the state.

Stop Template

STOP Publication

2018 Statement of Operations Annual Publication


Purpose
The purpose of the Fairs on the Watch Program (FOTW) is to identify ways of reversing negative trends affecting individual fairs. The goal is to ensure that the Network of California Fairs can continue to meet community needs and pursue success at the local level. It is key F&E staff and fair staff work together to improve the fiscal viability of the fair.

During the annual Statement of Operations (STOP) review, F&E identifies fiscally challenged fairs. Identifying the “red flags” during the annual STOP review allows F&E to recognize fairs that require monitoring, need assistance, or require intervention by F&E. Some of the fairs identified may already be a participant in F&E’s Provisional Fair program, while other fairs may be required to participate in the program for the very first time. Fiscal monitoring by F&E will dictate what actions are ultimately necessary to help challenged fairs remain solvent and viable community institutions.

Criteria used to identify fairs to be placed in the Fairs on the Watch Program
A notification letter will be sent to the fair stating the addition, continuation, or removal from the FOTW Program. If the fair is new to the FOTW Program, a preparation guide will be sent out no later than one month following the STOP Approval Letter.

  • A negative reserve percentage
  • Insufficient budget control
  • Insufficient administrative control
  • New management

Notification of Addition or Removal to the FOTW Program
Fairs will be notified about their status when the fair’s STOP has been reviewed and approved. A notification letter will be sent to the fair stating the addition, continuation, or removal from the FOTW Program. If the fair is new to the FOTW Program, a preparation guide will be sent out no later than one month following the STOP Approval Letter.

Criteria for removal from the Fairs on the Watch Program
Fairs will be removed from the FOTW Program if the fairs financials show substantial increasing resources based on the STOP over a two year period and the reserve percentage increases to 5% or more two consecutive years in a row. Once a fair is removed from the FOTW Program they will be placed on the Provisional Fair list (See below for Provisional Fair information).

Criteria used to determine if fairs will remain in the FOTW Program

  • Negative reserve percentage
  • Significant drop in reserves over the latest two year period
  • Low cash availability
  • Trends showing expenditures exceeding budget
  • Trends showing revenues decreasing
  • Excessive liabilities, considering assets
  • Insufficient budget control
  • Insufficient administrative control
  • Trends showing direction toward insolvency

FOTW Additional reporting requirements

  • Annual budget
  • Submit yearly in December
  • Agenda Notice 10 calendar days prior to board meeting
  • Submit 12-15 calendar days in advance if agenda review is requested
  • Complete Board Package within one week of the meeting
  • Including:
    • Financials (balance sheet, income statement, trial balance, etc.)
    • Board meeting minutes including closed session minutes Report

Resources Available

Fairs included in the FOTW Program are eligible for the following resources based on available funding at F&E:

  • Agenda Review/Development
  • Board Training provided by F&E
  • CEO Training provided by F&E
  • Strategic Planning services provided by CFSA
  • Board meeting attendance by F&E staff
  • Detailed fair time assessments
  • Community outreach support

Provisional Fairs

This is for fairs that have a net reserve of 0-15% as indicated on the annual STOP Publication.