CITY OF ALAMEDA, CALIFORNIA
PEDESTRIAN AND BICYCLE PROJECTS
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
JUNE 30, 2024
Exhibit 7
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CITY OF ALAMEDA
PEDESTRIAN AND BICYCLE PROJECTS
Financial Statements
For the Year Ended June 30, 2024
Table of Contents
Page
Independent Auditor's Report ........................................................................................................................ 1 Balance Sheet .......................................................................................................................................... 3 Statement of Revenues, Expenditures and Changes in Fund Balance ................................................... 4 Notes to Financial Statements ................................................................................................................. 5 Independent Auditor’s Report on Internal Control Over Financial Reporting, on Compliance with the Transportation Development Act
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................... 7
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INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and City Council of the
City of Alameda, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Pedestrian and Bicycle Projects (Projects) of the City of Alameda (City), California, as of and for the year ended June 30, 2024, 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 Projects as of June 30, 2024, and the change in financial position for the year June 30, 2024 then ended in accordance with accounting principles 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 Matter
As discussed in Note 1, the financial statements present only the Projects and do not purport to, and do not present fairly the financial position of the City as of June 30, 2024 or the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with 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 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 considered material if there is a substantial likelihood that, 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 Projects’ intern al control. 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.
Other Reporting Required by
Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued ou r report dated December 27, 2024, on our consideration of the Projects’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulat ions, 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 Projects’ internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Projects’ internal control over financial reporting and compliance.
Pleasant Hill, California
December 27, 2024
2 CITY OF ALAMEDA
PEDESTRIAN AND BICYCLE PROJECTS
BALANCE SHEET
JUNE 30, 2024
2024
Allocation Allocation Allocation
Instruction Instruction Instruction
Number Number Number
23001043 23001044 24001033 Total
ASSETS
Due from Metropolitan Transportation Commission
LIABILITIES
Due to the City
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenue
FUND BALANCE (DEFICIT)
Total Liabilities, Deferred Inflows of
Resources and Fund Balance
See accompanying notes to financial statements
3 CITY OF ALAMEDA
PEDESTRIAN AND BICYCLE PROJECTS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2024
2024
Allocation Allocation Allocation
Instruction Instruction Instruction
Number Number
Number
23001043 23001044 24001033 Total
REVENUES
TDA Article 3.0 (Note 2) $124,000 $124,000
Total Revenues 124,000 124,000
EXPENDITURES
Grand St. Sidewalk Gap Completion
Grand St. Bicycle and Pedestrian Safety
Improvements
Shared-Use Path Maintenance - Bay
Farm/Shoreline Park 124,000 124,000
Total Expenditures 124,000 124,000
Excess of Revenues over Expenditures
Fund balance at beginning of year
Fund balance at end of year
See accompanying notes to financial statements
4 CITY OF SANTA CLARA
PEDESTRIAN AND BICYCLE PROJECTS
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Alameda has developed the Pedestri an and Bicycle Projects (Projects) under the Transportation Development Act (TDA), Article 3.0, for the construction for pedestrian pathways, wheelchair ramps and bicycle master plan studies.
The TDA funds are distributed through the Metropolitan Transportation Commission (MTC), which is the agency responsible for allocation of funds to eligible claimants wi thin the greater San Francisco Bay
Area.
The Projects are included in the Capital Project Fund of the Annual Comprehensive Financial Report of the City. The financial statements are intended to present the financia l position and results of operation for the Projects, and not those of the City as a whole.
A. Basis
of Accounting
Basis of accounting refers to when revenues and expenditures are recognized. The Projects are accounted for in a governmental fund type and the modified accrual basis of accounting is used. Under the modified accrual basis, revenues are recognize d when they become measurable an d available as net current assets.
Expenditures are generally recognized when they are incurred.
B. Deferred Outflows/Inflows of Resources
In addition to assets, the balanc e sheet may report a separate s ection for deferred outflows of resources.
This separate financial statement elemen t, deferred outflows of resources, represents a consumption of fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expenditure) until then.
In addition to liabilities, the balance sheet may report a separate section for deferred inflows of resources.
This separate financial statement element, deferred inflows of resources, represents an acquisition of fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Projects have only one item, whic h arises only under a modified accrual basis of accounting, that qualifies for reporting in this catego ry. Accordingly, the item, unavailable revenue, is reported only in the balance sheet. The Projects re port unavailable revenues from one source: accounts receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
C. Use
of Estimates
The preparation of financial statements in conformi ty with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabiliti es at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
5 CITY OF SANTA CLARA
PEDESTRIAN AND BICYCLE PROJECTS
Notes to the Financial Statements
For the Year Ended June 30, 2024
NOTE 2 - TDA ARTICLE 3.0 REVENUE
As of June 30, 2024, the City had allocation in structions from the Metropolitan Transportation Commission for the following projects:
Expended from Revenue Received
Allocation Grant Inception to Inception to
Project Name Instruction # Amount June 30, 2024 June 30, 2024 Grand St. Sidewalk Gap Completion 23001043 $50,000
Grand St. Bicycle and Pedestrian Safety Improvements 23001044 76,618 Shared-Use Path Maintenance - Bay Farm/Shoreline Park 24001033 124,451 $124,000 $124,000 6 INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING,
ON COMPLIANCE WITH THE TRANSPORTATION
DEVELOPMENT ACT AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and City Council of the
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 the United States , the financial statements of the C ity of Alameda
Bicycle/Pedestrian Projects (Projects) as of and for the year ended June 30, 2024 , and the related notes to the financial statements, and have issued our report thereon dated December 27, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Projects’ internal control over financial reporting (i nternal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of e xpressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Projects’ internal control.
Accordingly, we do not express an opinion on the effectiveness of the Projects’ internal control.
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 Projects’ 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 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 or significant deficiencies may exist that have not been identified. 7 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whet her the Projects’ financial statements are free from material misstatement, we performed tests of its comp liance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. Our procedures included the applicable audit procedures contained in §6666 of Title 21 of California Code of Regulations and tests of compliance with the appl icable provisions of the Transportation Development Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other ma tters that are required to be reported under Government Auditing Standards.
We have also issued a separate Me morandum on Internal Control date d December 27, 2024 which is an integral part of our audit and should be read in conjunction with this report.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testi ng of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Projects’ internal control or on compliance. This report is an integr al part of an audit performed in accordance with Government Auditing Standards in considering the Projects’ internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
This report is intended solely for the information and use of the Me tropolitan Transportation Commission, management, City Council, others within the City, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
December 27, 2024
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