CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
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CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
Table of Contents
Page
Independent Auditor’s Report .......................................................................................... 1
Financial Statements:
Balance Sheets ............................................................................................................... 3
Statements of Revenues, Expenditures, and Changes in Fund Balances ...................... 4
Notes to the Financial Statements ................................................................................. 5
Independent Auditor’s Report on Internal Control
Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................. 9
Independent Auditor’s Report on Measure BB Compliance ...................................... 11
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Alameda, California
Report on the Financial Statements
We have audited the accompanying financial stat ements of the Alameda County Transportation Commission Measure BB Program (Measure BB Program) of the City of Alameda (City), California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fa ir presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United St ates. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City ’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpos e of expressing such an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements
referred to above present fairly, in all material respects, the financial position of the Measure BB Program as of June 30, 2021, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. 1 Emphasis of a Matter
As discussed in Note 1, the financial statements present only the Measure BB Program and do not purport to, and do not present fairly the financial position of the City as of June 3 0, 2021, the changes in the financial position, or where applicable, its cash flows for the year then ended in accordance to accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 10, 2022 on our consideration of the City’s internal control over financial reporting as it relates to th e Measure BB Program and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that rep ort is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the City’s intern al control over financial reporting or o n compliance. That report is an integral part of an audit performed in accordance with Government Auditing S tandards in considering the City’s intern al control over financial reporting and compliance as it relates to the Measure BB Program.
Pleasant Hill, California
January 10, 2022
2 CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
BALANCE SHEETS
JUNE 30, 2021
Local Streets Bicycle and
Paratransit and Roads Pedestrian Total
ASSETS
Cash and investments 146,285 $ 3,108,488 $ 354,486 $ 3,609,259 $ Direct local distribution program receivable - Measure BB 43,955 444,091 48,153 536,199 TOTAL ASSETS 190,240$ 3,552,579 $ 402,639 $ 4,145,458 $
FUND BALANCES
Restricted for Measure BB Programs 190,240$ 3,552,579 $ 402,639 $ 4,145,458 $ TOTAL LIABILITIES AND FUND BALANCES 190,240$ 3,552,579 $ 402,639 $ 4,145,458 $ See Accompanying Notes to the Financial Statements.
3 Local Streets Bicycle and
Paratransit and Roads Pedestrian Total
REVENUES
Measure BB direct local distribution funds allocation 216,217 $ 2,184,493 $ 236,868 $ 2,637,578 $ Interest income 811 23,451 4,093 28,355
Changes in fair value 2,530 22,930 9,287 34,747
Total Revenues 219,558 2,230,874 250,248 2,700,680
EXPENDITURES
Planning and engineering 14,648 85,860 23,992 124,500 Transportation and construction 116,257 230,276 190,419 536,952 Total Expenditures 130,905 316,136 214,411 661,452 NET CHANGE IN FUND BALANCES 88,653 1,914,738 35,837 2,039,228
FUND BALANCES
Beginning fund balances 101,587 1,637,841 366,802 2,106,230 Ending fund balances 190,240 $ 3,552,579 $ 402,639 $ 4,145,458 $ See Accompanying Notes to the Financial Statements.
CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2021
MEASURE BB FUNDS
4 CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
A. Description of Reporting Entity
Under Measure BB, approved by the voters of Alam eda County in November 2014, the City of Alameda (City) receives a one-half percent sales tax to be used for local transportation-related expenditures. The duration of the tax will be 30 y ears from the initial year of collection, whic h began on April 1, 2015 and will expire on Marc h 31, 2045. The voters also extended the Measure B one-half percent sales tax to 2045. This resulted in a total of one percent sales tax in Alameda County dedicated to transportation expenditures.
B. Basis of Presentation
The Measure BB Program has been accounted for in a special revenue fund, which is a governmental fund type and is included in the City's basic financial statements as a nonmajor governmental fund. Special revenue funds are used to account for proceeds of specific revenues that are legally restricted to be expended for specified purposes.
The financial statements do not purport to, and do not, present the financial position or changes in financial position of the City. The projects represent a portion of th e activities of the City and, as such, are included in the City's basic financial statements.
C. Basis of Accounting
The accompanying financial statements are prepared on the modified accrual basis of accounting.
Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds ar e accounted for using a “current financial resources” measurement focus, wherein only curre nt assets and current liabilities generally are included on the balance sheets. Operating statemen ts of governmental funds presents increases (revenues and other financing sources) and decreas es (expenditures and other financing uses) in net current assets.
5 CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (Continued)
D. Fund Balance
Measure BB Program fund balance is restricted. A restricted fund balance represents amounts that can be spent only for specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions ma y effectively be changed or lifted only with the consent of resource providers.
When an expenditure is incurred for purposes for which both re stricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first.
E. Use of Estimates
Management uses estimates a
nd assumptions in preparing the financial statements. Thos e estimates and assumptions affect the reported am ounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources, the disclosures of contingent assets and liabilities, and the reported revenues and expenditures. Actual results could differ from those estimates.
NOTE 2 – CASH AND INVESTMENTS
Cash and investments represent the Measure BB Program’s share of the City’s Treasury pool. All of the Measure BB Program’s cash and investments ar e deposited in the City’s Treasury pool as described in the City’s Comprehensive Annual Financial Report, which can be obtained from the City’s Department of Finance. The pool is un rated. Investments in the pool are made in accordance with the City’s investment policy as approved by the City Council. Investments are stated at fair value. However, the value of the pool shares in the City’s Treasury pool that may be withdrawn is determined on an amortized cost basi s, which is different from the fair value of the Measure BB Program’s position in the pool. Inte rest earned from time deposits and investments is allocated annually to the Program’s based on the average monthly cash balance. The Measure BB Program’s proportionate share of investments in the City’s Treasury pool at June 30, 2021 of $3,609,259, which is not subject to the fair value hierarchy.
NOTE 3 – MEASURE BB DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLES
The Measure BB Direct Local Distribution Program Receivables represent the Measure BB sales tax revenues for the fiscal year received from
the Alameda County Transportation Commission
after June 30, 2021.
6 CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 4 – MEASURE BB FUNDS
Under Measure BB, approved by the voters of Al ameda County in 2014, the City receives a portion of the proceeds of an ad ditional one-half cent sales tax to be used for transportation- related expenditures. This measure was adopted with the intention that the funds generated by the additional sales tax will not fund expenditures prev iously paid for by property taxes but, rather, would be used for additiona
l projects and programs.
Alameda County Transportation Commission (ACTC) distributes Measure BB funds to the City of Alameda for local street maintenance and safe ty; bicycle and pedestrian paths and safety; and for Paratransit for seniors and people with disabilities.
Local projects funded by Measure BB revenues r eceived during fiscal year 2020-21 were as follows:
Paratransit – $216,217 includes funding the costs of transportati on services for paratransit and seniors.
Local Streets and Roads – $2,184,493 pass-through allocation for the funding of the following Streets and Roads projects:
- Sidewalks - Otis Drive Traffic Calming and Safety
- Pavement Management - Special Projects
Bicycle and Pedestrian – $236,868 includes f unding for the Complete Streets and Bike and Pedestrian Program.
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INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Alameda, California
We have audited, in accordance with the auditing st andards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of th e United States, the financial statements of the Alameda County
Transportation Commission Measure BB Program of the City of Alameda (City), California, as of and for the year ended June 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated January 10, 2022. Our report included an emphasis of a matter paragraph stating that the financial statements of the Measure BB Program do not purport to, and do not, present fairly the financial position of the City as of June 30, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as it relates to the Measure BB Program to determine the audit procedures that are appropriate in the circumstan ces for the purpose of expressing our opinions on the financial statements, but not for the purpose of e xpressing an opinion on the effectiveness of the City’s internal control as it relates to the Measure BB Progr am. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control as it relates to the Measure BB Program.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned func tions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficienci es in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
9 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financ ial statements of the Measure BB Program are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, c ontracts, and grant agreements, nonc ompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, an d accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testin g of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance as it relates to the Measure BB Program. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance as it relates to the Measure BB Program. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
January 10, 2022
10 INDEPENDENT AUDITOR'S REPORT
ON MEASURE BB COMPLIANCE
To the Honorable Members of the City Council
City of Alameda, California
Report on Compliance for Measure BB Program
We have aud ited, in accordance w ith the auditing standards generall y accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Co mptroller General of the United Stat es, the financial statements o f the Alameda County Transportation Commission Measure BB Program o f the City of Alameda (City), as of and for the y ear ended June 30, 2021 and the related n otes to the financial statements, and have issued ou r repo rt thereon dated January 10, 2022.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, re gulations, contracts, and grants specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the Measure BB Program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards ge nerally accepted in the United St ates of America; the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States; and requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Tr ansportation Commission. Those standards and requirements require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requiremen ts referred to above that could have a direct and material effect on the Measure BB Program. An audit in cludes examining, on a test basis, evidence about the City’s compliance with those requirements and pe rforming such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable ba sis for our opinion on compliance for the Measure BB Program. However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Measure BB Program
In our opinion, the City complied, in all material respects, with th e types of compliance requirements referred to above that could have a direct and material effect on Measure BB Program for the year ended June 30, 2021.
11 Report on Internal Control Over Compliance
Management is responsible for establishing and main taining effective internal control over compliance with the types of compliance requirements referred to above. In planning an d performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on the Meas ure BB Program to determine the auditing procedures that are appropriate in the circumstances for the purp ose of expressing an opinion on compliance for the Measure BB Program and to test and report on intern al control over compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the Measure BB Program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the Measure BB Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the Measure BB Program that is less severe than a material weakness in internal control over co mpliance, yet important eno ugh to merit attention by those charged with governance.
Our consideration of internal control over complian ce was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on intern al control over compliance is sole ly to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements, specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose.
Pleasant Hill, California
January 10, 2022
12