1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
AVA Community Energy
Management is responsible for the accompanying financial statements of AVA Community Energy (a California Joint Powers Authority) which comprise the statement of net position as of December 31, 2023, and the related statements of revenues, expenses, and changes in net position, and the statement of cash flows for the three and six 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.
AVA Community Energy’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
February 6, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Attachment Consent Item 11
Current assets
Cash and cash equivalents - unrestricted 442,390,646 $
Accounts receivable, net of allowance 76,854,357
Accrued revenue 50,606,910
Other receivables 3,762,496
Prepaid expenses 2,933,196
Deposits 7,302,495
Total current assets 583,850,100
Noncurrent assets
Unrestricted cash and cash equivalents in Rate Stabilization Fund 53,014,000 Deposits 933,059
Loan receivable 479,973
Lease asset, net of amortization 865,676
Capital assets:
Non depreciable asset 9,386,864
Furniture and equipment, net of depreciation 384,434
Total capital assets 9,771,298
Total noncurrent assets 65,064,006
Total assets 648,914,106
Current liabilities
Accrued cost of electricity 100,357,316
Accounts payable 2,805,275
Other accrued liabilities 6,831,292
User taxes and energy surcharges due to other governments 7,149,445 Lease liability 691,760
Security deposits - energy suppliers 5,210,360
Total current liabilities 123,045,448
Noncurrent liabilities
Lease liability 252,245
Security deposits - energy suppliers 3,600,000
Total liabilities 126,897,693
Rate Stabilization Fund 53,014,000
Net investment in capital assets 9,692,969
Unrestricted 459,309,444
Total net position 469,002,413 $
NET POSITION
AVA COMMUNITY ENERGY
STATEMENT OF NET POSITION
As of December 31, 2023
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
Attachment Consent Item 11
Quarter Year-to-Date
OPERATING REVENUES
Electricity sales, net 204,950,105 $ $ 473,602,735
Liquidated damages 5,387,857 5,441,770
Grant revenue 612,562 668,793
Other operating revenues 123,921 288,760
Total operating revenues 211,074,445 480,002,058
OPERATING EXPENSES
Cost of electricity 166,176,901 358,828,204
Contract services 4,370,378 8,778,404
Staff compensation 3,695,401 7,665,384
Other operating expenses 1,974,914 2,896,989
Depreciation and amortization 211,229 238,966
Total operating expenses 176,428,823 378,407,947
Operating income (loss) 34,645,622 101,594,111
NONOPERATING REVENUES (EXPENSES)
Investment income 3,087,672 4,983,728
Financing costs (128,569) (231,702)
Nonoperating revenues (expenses), net 2,959,103 4,752,026 CHANGE IN NET POSITION 37,604,725 106,346,137
Net position at beginning of period 431,397,688 362,656,276 Net position at end of period $ 469,002,413 $ 469,002,413
AVA COMMUNITY ENERGY
STATEMENT OF REVENUES, EXPENSES
AND CHANGE IN NET POSITION
Six Months Ended December 31, 2023
See accountants' compilation report. 3
Attachment Consent Item 11
Quarter Year-to-Date
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 245,011,629 $ 494,242,986 $
Other operating receipts 5,859,390 6,159,374
Receipts of supplier security deposits 5,109,360 5,970,360 Payments to suppliers for electricity (171,145,993) (314,765,615) Payments for other goods and services (6,298,685) (12,467,342) Payments of staff compensation (3,504,229) (7,415,978)
Deposits and collateral paid (6,929,262) (7,216,883)
Tax and surcharge payments to other governments (9,498,037) (18,390,759) Net cash provided (used) by operating activities 58,604,173 146,116,143
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Payments of financing costs - (103,134)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (118,304) (118,304)
Payments to acquire capital assets (85,603) (178,302)
Net cash (used) by capital and related financing activities (203,907) (296,606)
CASH FLOWS FROM INVESTING ACTIVITIES
Principal payments received of loan receivable 5,562 11,049 Investment income received 2,886,733 4,627,961
Net cash provided (used) by investing activities 2,892,295 4,639,010 Net change in cash and cash equivalents 61,292,561 150,355,413 Cash and cash equivalents at beginning of period 434,112,085 345,049,233 Cash and cash equivalents at end of period $ 495,404,646 $ 495,404,646 Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents (current) $ 442,390,646 $ 442,390,646 Unrestricted cash and cash equivalents (noncurrent) 53,014,000 53,014,000 Cash and cash equivalents $ 495,404,646 $ 495,404,646
Six Months Ended December 31, 2023
STATEMENT OF CASH FLOWS
AVA COMMUNITY ENERGY
See accountants' compilation report. 4
Attachment Consent Item 11
Quarter Year-to-Date
Operating income (loss) $ 34,645,622 $ 101,594,111
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 211,229 238,966
(Increase) decrease in:
Accounts receivable 28,902,980 7,344,301
Market settlements receivable - 807,102
Other receivables (2,495,935) (3,316,161)
Accrued revenue 2,669,819 (4,839,581)
Prepaid expenses (399,724) 15,454,888
Deposits (6,873,069) (7,157,390)
Increase (decrease) in:
Accrued cost of electricity 768,662 35,221,181
Accounts payable 388,826 (1,654,157)
Other accrued liabilities 241,781 266,587
Deferred revenue (58,466) 633,769
User taxes due to other governments (1,009,312) (255,233) Security deposits from energy suppliers 1,611,760 1,777,760 Net cash provided (used) by operating activities 58,604,173 $ $ 146,116,143
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Six Months Ended December 31, 2023
STATEMENT OF CASH FLOWS (Continued)
AVA COMMUNITY ENERGY
See accountants' compilation report. 5
Attachment Consent Item 11