CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
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CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM
FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
Table of Contents
Page
Independent Auditor’s Report .......................................................................................... 1
Financial Statements:
Balance Sheet ................................................................................................................ 3
Statement of Revenues, Expenditures, and Change in Fund Balance .......................... 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 ............................... 7
Independent Auditor’s Report on Vehicle Registration Fee (VRF) Measure F Compliance .......................................................................................... 9
This Page Left Intentionally Blank
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 Vehicle Registration Fee (VRF) Measure F Program (Measure F 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 an opinion 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 purpose of expressing an opinion on the eff ectiveness 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.
1 Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure F Program as of June 3 0, 2021, and the change in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of a Matter
As discussed in Note 2, the financial statements present only the Measure F Program and do not purport to, and do not present fairly the financial position of th e City as of June 30, 2021, the changes in financial position, or wh ere applicab le, its cash flo ws for the year then ende d in accordance with 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 reportin g as it relates to the Measure F Prog ram an d on o ur tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is so lely 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 o pinion on the effectiveness of the City’s internal control over financial reporting or o n compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal contro l over financial reporting and compliance as it relates to the Measure F Program.
Pleasant Hill, California
January 10, 2022
2 Vehicle
Registration
Fees
ASSETS
Cash and investments 94,309$
Direct local distribution program receivable - Measure F 55,554 TOTAL ASSETS 149,863$
FUND BALANCE
Restricted for Measure F Programs 149,863$
TOTAL FUND BALANCE 149,863$
See Accompanying Notes to the Financial Statements.
CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM
BALANCE SHEET
JUNE 30, 2021
3 Vehicle
Registration
Fees
REVENUES
Measure F direct local distribution funds allocation 325,823$
Interest 3,372
Changes in fair value 13,052
Total Revenues 342,247
EXPENDITURES
Transportation and construction (Note 5) 520,000
Total Expenditures 520,000
NET CHANGE IN FUND BALANCE (177,753)
FUND BALANCE
Beginning fund balance 327,616
Ending fund balance 149,863$
See Accompanying Notes to the Financial Statements.
CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2021
VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM
4 CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 1 – DESCRIPTION OF REPORTING ENTITY
Alameda County Vehicle Registration Fee Measure F (Measure F Program) was approved by the voters in November 2010, with 63 percent of the vote. The fee will generate about $10.7 million per year by a $10 per year vehicle registration
fee. The collection of the $10 per year vehicle
registration fee started in the first week of May 2011. The goal of the VRF Program is to sustain the County’s transportation network and reduce tra ffic congestion and vehicle related pollution.
The program includes four categories of projects:
Local Road Improvement and Repair Program (60 percent) Transit for Congestion Relief (25 percent)
Local Transportation Technology (10 percent)
Pedestrian and Bicyclist Access and Safety Program (5 percent) The Alameda County Transportation Commission ad
ministers the program and distributes an
equitable share of the funds among the four planning areas of the county over successive five year cycles. Geographic equity is measured by a form ula, weighted 50 percent by population of the planning area and 50 percent by registered vehicles of the planning area.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
A. Basis
of Presentation
The Measure F Program has been accounted fo r in a special revenue fund, which is a governmental fund type and is classified in th e City's basic financial statements as a nonmajor governmental fund. Special reve nue funds are used to account fo r proceeds of specific revenues (e.g., VRF revenue and investment income) 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.
B. Basis of Accounting
The accompanying financial statements have been prepared on the modified accrual basis of accounting. Under the modified accrual basis of acc ounting, expenditures are recorded when the related governmental fund liabilities are incurred. Revenues, including sales taxes and investment earnings, are recognized when they become meas urable and available (generally received within 60 days after year-end).
5 CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2021
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (CONTINUED)
C. Fund Balance
Measure F Program fund balance is restricted. A re stricted 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.
D. Use of Estimates
The preparation of financial statements requires management to make es timates and assumptions that affect certain reported amounts and disclo sures. Actual results could differ from those estimates.
NOTE 3 – CASH AND INVESTMENTS
Cash and investments represent the Measure F Pr ogram’s share of the City’s Treasury pool. All
of the Measure F 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 unrated. Investme nts 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 F Program’s position in the pool. Interest earned from time deposi ts and investments is allocated annually to the Measure F Program based on average monthly cash balance. The Measure F Program’s proportionate share of investme nts in the City's Treasury pool at June 30, 2021 of $94,309 which is not subject to the fair value hierarchy.
NOTE 4 – MEASURE F DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLE The Measure F Direct Local Distribution Program Receivable represents the Measure F revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2021.
NOTE 5 – MEASURE F DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLE
Transportation and construction expenditures of $520,000 were incurred during the year ended June 30, 2020, but the City did not determine that they would be applied to the Measure F
Program funding until fiscal year 2021.
6 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 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 Comptroller General of th e United States, th e financial statements of the Alameda Coun ty Transportation Commission Vehicle Registration Fee Program (Measu re F Program) of the City of Alameda (City), California, as of an d for the year ended June 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated January 10, 2 022. Our report included an emphasis of a matter paragraph stating that the financial statements of the Measure F 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 F Program as a b asis for designing audit procedures that are ap propriate in the circumst ances for the purpo se of ex pressing our opinions on the finan cial statements, but not fo r the purpo se of expressing an o pinion on the effectiveness of the City’s internal control as it relates to the Measure F Program. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control as it relates to the Measure F Program.
A deficiency in internal contro l exists wh en th e design or op eration of a control does not allow management or employees, in the normal course of performing their assign ed functions, to prevent, or detect and correct, misstatemen ts 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 wi ll 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 lim ited purpose described in the first paragraph of this section and was not designed to identify all deficien cies 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.
7 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the Measure F 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 no ncompliance or other matter s that are required to be reported 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 F 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 F Program . Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
January 10, 2022
8 INDEPENDENT AUDITOR'S REPORT
ON VEHICLE REGISTRATION FEE (VRF)
MEASURE F COMPLIANCE
To the Honorable Members of the City Council
City of Alameda, California
Report on Compliance for Measure F Program
We have audited, in accordance with the 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 States, the financia l statements o f the Alameda County Transportatio n Commission Vehicle Reg istration Fee Program (Measure F Program) of the City of Alameda (City ), California, as of and for the year end ed June 30, 2021, and the related notes to the financial statements and have issued our report thereon dated January 10, 2022.
Management’s Responsibility
Management is responsible for compliance with the requir ements of laws, regulations, contracts, and grants specified in the Master Programs Funding Agreement between the City and Alameda County Transportation Commission.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the Measure F 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 generally accepted in the United Stat es 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 Transportation Commission. Those standards and requirements require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with th e types of compliance requirements referred to above that could have a direct and materi al effect on the Measure F Program. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing 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 F Program. However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Measure F Program
In our opinion, the City complied, in all material respects, with the t ypes of compliance requirements referred to above that could have a direct and material effect on Measure F Program for the year ended June 30, 2021. 9 Report on Internal Control Over Compliance
Management is responsible for establ ishing and maintaining effective inte rnal control over compliance with the types of compliance requirements referred to above. In planning and 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 Measur e F Program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on complianc e for the Measure F Program and to test and report on internal 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 cour se of performing their assigned functions, to prevent, or detect an d correct, noncompliance with a type of compliance requirement of Measure F 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 requ irement of Measure F Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in inter nal control over compliance is a deficiency, or a combination of deficiencies, in intern al control over compliance with a type of compliance requirement of Measure F Program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was no t designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant defici encies. We did not identify an y deficiencies in internal control over compliance that we consider to be materi al weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of th at 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
10