CITY OF ALAMEDA, CALIFORNIA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE B PROGRAM
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2023
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CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE B PROGRAM
FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
Table of Contents
Page
Independent Auditor’s Report .......................................................................................... 1 Financial Statements:
Balance Sheets ............................................................................................................... 5 Statement of Revenues, Expenditures, and Changes in Fund Balances ....................... 6 Notes to the Financial Statements ................................................................................. 7 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 .............................. 11 Independent Auditor’s Report on Measure B Compliance ......................................... 13 This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Alameda, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial stat ements of the Alameda County Transportation Commission Measure B Program (Measure B Program) of the City of Alameda (City), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure B Program as of June 30, 2023, and the respective change in financial position for the year then ended in accordance with accounting prin ciples generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing sta ndards 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 Stat es. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be inde pendent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of a Matter
As discussed in Note 1, the financial statements present only the Measure B Program and do not purport to, and do not present fairly the financial position of the City as of June 30, 2023, the changes in financial position, or where applicable, its cash flows for the year ended in accordance wi th accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fa ir presentation of these financial statements in accordance with accounting principles generally accep ted in the United States of America, and for 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.
1 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure B Program’s ability to continue as a going concern for twelve months be yond the financial statem ent date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance ab out whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conduc ted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement re sulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are cons idered material if there is a substantial likelihood, individually or in the aggregate, they would influence the judgment ma de by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstate ment of the financial statements, whether due to fraud or error, and design and perform audit procedures respon sive to those risks. Suc h
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of inte
rnal control relevant to the a udit in order to design audit procedures that are appropriate in the circumst ances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control as it relates to the Measure B Program.
Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policie s used and the reasonableness of significant accounting estimates made by ma nagement, as well as evaluate the overall presentation of the financial statements.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant au dit findings, and certain internal control-related matters that we identified during the audit.
2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued ou r report dated December 28, 2023 on our consideration of the City’s internal cont rol over financial reporting as it relates to the Measure B Program and on our tests of its complia nce with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report 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 internal control over financial reporting or on compliance. That report is an integr al part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance as it relates to the Measure B Program.
Pleasant Hill, California
December 28, 2023
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Local Streets Bicycle and
Paratransit and Roads Pedestrian Total
ASSETS
Cash and investments 192,952 $ 1,131,726 $ 273,316$ 1,597,994$ TOTAL ASSETS 192,952$ 1,131,726$ 273,316$ 1,597,994$
FUND BALANCES
Restricted for Measure B Programs 192,952$ 1,131,726$ 273,316$ 1,597,994$ TOTAL FUND BALANCES 192,952$ 1,131,726$ 273,316$ 1,597,994$ See Accompanying Notes to the Financial Statements.
CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
BALANCE SHEETS
JUNE 30, 2023
MEASURE B PROGRAM
5 Local Streets Bicycle and
Paratransit and Roads Pedestrian Total
REVENUES
Interest income 5,415 $ 45,779 $ 9,710 $ 60,904 $ Changes in fair value 17,421 26,935 3,215 47,571
Total Revenues 22,836 72,714 12,925 108,475
EXPENDITURES
Planning and engineering 5,743 210,045 108,564 324,352 Transportation and construction 42,949 1,844,104 52,484 1,939,537 Total Expenditures 48,692 2,054,149 161,048 2,263,889 NET CHANGE IN FUND BALANCES (25,856) (1,981,435) (148,123) (2,155,414)
FUND BALANCES
Beginning fund balances 218,808 3,113,161 421,439 3,753,408 Ending fund balances 192,952 $ 1,131,726 $ 273,316 $ 1,597,994 $ See Accompanying Notes to the Financial Statements.
CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2023
MEASURE B PROGRAM
6 CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE B PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of Reporting Entity
Under Measure B, approved by the voters of Al ameda County in 2000, the City of Alameda (City) receives a one-half percent sales tax until 2022 for transportation-related expenditures.
This measure was adopted with th e intention that the funds gene rated by the additional sales tax will not fund expenditures previously paid for by property taxes but, rather, would be used for additional projects and programs. In November 2014, the voter s of Alameda County approved Measure BB for an additional one-half percent sa les tax and also extended the Measure B one- half percent sales tax to 2045. Th is resulted in a total of one per cent sales tax in Alameda County dedicated to transportation expe nditures. From a pool of funds held by the County of Alameda (County), 10.45 percent is allocated for distribu tion as a subsidy to cities with paratransit programs. Funds allocated to the
City for the paratransit program are received separately from funds received for capital projects, and they are re corded in a special revenue fund. An additional
20.34 percent of the pool is allocated among the cities in the County, based on the cities' populations and the number of roads within thei r city limits for other transportation related projects.
B. Basis of Presentation
The Measure B Program has been accounted fo r 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 are accounted for using a “current financial resources” measurement focus, wherein only current as sets 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.
7 CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE B PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Fund Balance
Measure B 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 expenditures are incurred for purposes for which both restricted 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 B Pr ogram’s share of the City’s Treasury pool. All of the Measure B Program’s cash and investments are deposited in the C ity’s Treasury pool a s
described in the City’s Annual Comprehensive 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 B Program’s position in the pool. Intere st earned from time deposi ts and investments is allocated annually to the Program’s based on average monthly cash balance. The Measure B Program’s proportionate share of investments in the City's Treasury pool at June 30, 2023 of $1,597,994, which is not subjected to the fair value hierarchy.
NOTE 3 – MEASURE B DIRECT LOCAL DISTRIBUTION PROGRAM
On March 31, 2022 the Measure B sales tax program sunset and tax distributions will no longer be distributed to members. The City will c ontinue to fund projects with prior unspent distributions from ACTC until all Measure B proceeds have been exhausted. 8 CITY OF ALAMEDA
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE B PROGRAM
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 4 – MEASURE B PROJECTS
Local projects funded by Measure B revenues recei ved during fiscal year 2022-23 were as follows:
Paratransit – includes funding the costs of transpor tation services for paratransit and seniors, as well as bus stop access and benches and ADA co mpliance of curb ramps for the Otis Drive Traffic Calming and Safety project.
Local Streets and Roads – pass-through allocation for the funding of the following streets and roads projects:
-
Clement Avenue Safety Improvements - Signs, Pavement and Markings - Sidewalks - Traffic and Safety Systems
- Pavement Management - Central Avenue Safety Improvements - Safe Route to School - Commercial Slow Streets
Bicycle and Pedestrian – includes funding for the Complete Streets and Bike and Pedestrian Program and the Clement Avenue Safety 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 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, the financial statements of the Alameda County Transportation Commission Measure B Program of the City of Alameda (City), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon dated December 28, 2023. Our report included an emphasis of a matter pa ragraph stating that the financial statements of the Measure B Program do not pu rport to, and do not, present fairly the financial position of the City as of June 30, 2023.
Report on 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 rela tes to the Measure B Program as a basis for designing audit procedures that are appropriate in the circumst ances for the purpose of ex pressing our opinions on the financial statements, but not fo r the purpose of expressing an op inion on the effectiveness of the City’s internal control as it relates to the Measure B Program. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control as it relates to the Measure B Program.
A deficiency in internal control exists when the design or oper ation of a control does not allow management or employees, in the normal course of performing their assigned 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 Measure B Program’s financial st atements 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 en ough 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 li mitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. 11 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the Measure B 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 B 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 B Progra m. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
December 28, 2023
12 INDEPENDENT AUDITOR'S REPORT
ON MEASURE B COMPLIANCE
To the Honorable Members of the City Council
City of Alameda, California
Report on Compliance for Measure B Program
Opinion on Compliance for Measure B Program
We have audited the City of Alameda’s compliance with
the requirements of laws, regulations, contracts, and
grants specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission (Funding Agreement) that coul d have a direct and material effect on the Alameda County Transportation Commission Measure B Program for the year ended June 30, 2023.
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 B Program for the year ended June 30, 2023.
Basis for Opinion on the Measure B Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards appl icable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States ( Government Auditing Standards ), and requirements specified in the Fund ing Agreement. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the a udit evidence we have obtained is sufficient and appropriate to provid e a basis for our opinion on compli ance for the Measure B Program. Our audit does not provide a le gal determination of the City’s compli ance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contract s or grant agreements applicable to the Measure B Program.
13 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance ab out whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assu rance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards and requirements specified in the Funding Agreement will always detect material noncompliance when it exists. The risk of not detecting material no ncompliance resulting from fraud is higher than for that resulting from error, as fraud may invo lve collusion, forgery, intentional om issions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, indi vidually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the Measure B Program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards and the Funding Agreement, we
• exercise professional judgment and maintain
professional skepticism throughout the audit.
• identify and assess the risks of material noncomplia
nce, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City ’s compliance with the complianc e requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • obtain an understanding of the City’s internal control over compliance re levant to the audit in order t o
design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the requirements referred to above, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on 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 and correct, noncompliance with a type of compliance requirement of the Measure B Program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in inte rnal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the Measure B 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 defici encies, in internal control over compliance with a type of compliance requirement of the Measure B 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. 14 Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or si gnificant deficiencies in internal control over compliance. Given these limitations, during our audit we did not iden tify any deficiencies in internal control over compliance that we consider to be material weak nesses, as defined above. However, material weaknesses or significant de ficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
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 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
December 28, 2023
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