Consent Item 7
TO: Ava Community Energy Authority
FROM: Jason Bartlett, Senior Finance Manager
SUBJECT: Fiscal Year 2023-2024 Q1 Financial Statements
DATE: December 20, 2023
__________________________________________________________________ Recommendation
Receive the Draft Financial Statements for the first quarter ending September 30, 2023 of the 2023-2024 fiscal year.
Background and Discussion
Ava’s accountant prepares the quarterly financial statements after the close of each fiscal quarter. Ava’s fiscal year starts on July 1st and ends on June 30th of each year.
The schedule of quarters ends on the following days:
• Q1: September 30
• Q2: December 31
• Q3: March 31
• Q4: June 30
In general, the accounting close of the fiscal quarter is 45 calendar days after the last day of the calendar quarter close date to allow transaction settlements to complete. The quarterly financial statements are generally released within 5 business days after the accounting close date.
The financial statements are shared with various counterparties, reporting entities, and other stakeholders upon release. Additionally, they are posted on Ava’s website for the public to review.
Consent Item 7
Please note: These financial statements are titled as EBCE as this was the name Ava was conducting financial transactions under through the quarter being reported.
Committee Recommendation
The Finance, Administrative, & Procurement Subcommittee has approved these statements to be delivered to the Board of Directors as a consent item.
Attachments
A. 2024-Q1 DRAFT EBCE Financial Statements
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
East Bay Community Energy Authority
Management is responsible for the accompanying financial statements of East Bay Community Energy Authority (a California Joint Powers Authority) which comprise the statement of net position as of September 30, 2023, and the related statements of revenues, expenses, and changes in net position, and the statement of cash flows for the three months then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
East Bay Community Energy Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
October 27, 2023
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Attachment Consent Item 7A
Current assets
Cash and cash equivalents - unrestricted 380,098,086 $
Accounts receivable, net of allowance 105,757,337
Accrued revenue 53,276,729
Other receivables 1,065,622
Prepaid expenses 2,533,472
Deposits 431,584
Restricted cash 1,000,000
Total current assets 544,162,830
Noncurrent assets
Unrestricted cash and cash equivalents in Rate Stabilization Fund 53,014,000 Deposits 930,901
Loan receivable 485,536
Capital assets:
Land and construction-in-progress 9,386,864
Capital assets, net of depreciation 272,520
Total capital assets 9,659,384
Total noncurrent assets 64,089,821
Total assets 608,252,651
Current liabilities
Accrued cost of electricity 99,588,654
Accounts payable 2,246,975
Other accrued liabilities 6,647,977
User taxes and energy surcharges due to other governments 8,158,757 Security deposits - energy suppliers 2,411,100
Total current liabilities 119,053,463
Noncurrent liabilities
Security deposits - energy suppliers 4,787,500
Total liabilities 123,840,963
Rate Stabilization Fund 53,014,000
Investment in capital assets 9,659,384
Restricted for collateral 1,000,000
Unrestricted 420,738,304
Total net position 431,397,688 $
NET POSITION
EAST BAY COMMUNITY ENERGY AUTHORITY
STATEMENT OF NET POSITION
As of September 30, 2023
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
Attachment Consent Item 7A
OPERATING REVENUES
Electricity sales, net 268,652,630 $
Liquidated damages 53,913
Grant revenue 56,231
Other operating revenues 164,839
Total operating revenues 268,927,613
OPERATING EXPENSES
Cost of electricity 192,651,303
Contract services 4,408,026
Staff compensation 3,969,983
Other operating expenses 922,075
Depreciation 27,737
Total operating expenses 201,979,124
Operating income (loss) 66,948,489
NONOPERATING REVENUES (EXPENSES)
Investment income 1,896,056
Financing expense (103,133)
Nonoperating revenues (expenses), net 1,792,923
CHANGE IN NET POSITION 68,741,412
Net position at beginning of period 362,656,276
Net position at end of period $ 431,397,688
EAST BAY COMMUNITY ENERGY AUTHORITY
STATEMENT OF REVENUES, EXPENSES
AND CHANGE IN NET POSITION
Three Months Ended September 30, 2023
See accountants' compilation report. 3
Attachment Consent Item 7A
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 249,231,357 $
Other operating receipts 299,984
Receipts of supplier security deposit 861,000
Payments to suppliers for electricity (143,619,622)
Payments for other goods and services (6,168,657)
Payments of staff compensation (3,911,749)
Deposits and collateral paid (287,621)
Tax and surcharge payments to other governments (8,892,722) Net cash provided (used) by operating activities 87,511,970
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Principal payments received on loan receivable 5,487
Financing expense payments (103,133)
Net cash provided (used) by non-capital
financing activities (97,646)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments to acquire capital assets (92,699)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income received 1,741,228
Net change in cash and cash equivalents 89,062,853
Cash and cash equivalents at beginning of period 345,049,233 Cash and cash equivalents at end of period 434,112,086 $ Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents (current) 380,098,086 $ Restricted cash and cash equivalents (current) 1,000,000 Unrestricted cash and cash equivalents (noncurrent) 53,014,000 Cash and cash equivalents 434,112,086 $
Three Months Ended September 30, 2023
STATEMENT OF CASH FLOWS
EAST BAY COMMUNITY ENERGY AUTHORITY
See accountants' compilation report. 4
Attachment Consent Item 7A
Operating income (loss) $ 66,948,489
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation expense 27,737
(Increase) decrease in:
Accounts receivable (21,558,679)
Market settlements receivable 807,102
Other receivables (820,226)
Accrued revenue (7,509,400)
Prepaid expenses 15,854,612
Deposits (284,321)
Increase (decrease) in:
Accrued cost of electricity 34,452,519
Accounts payable (2,042,983)
Other accrued liabilities 24,806
Deferred revenue 692,235
User taxes due to other governments 754,079
Security deposits from energy suppliers 166,000
Net cash provided (used) by operating activities $ 87,511,970
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Three Months Ended September 30, 2023
(continued)S
EAST BAY COMMUNITY ENERGY AUTHORITY
See accountants' compilation report. 5
Attachment Consent Item 7A