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 March 31, 2024, and the related statements of revenues, expenses, and changes in net position, and the statement of cash flows for the three months and year-to-date 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
May 14, 2024
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Consent Item 15
Current assets
Cash and cash equivalents - unrestricted $ 514,780,318
Accounts receivable, net of allowance 79,029,271
Accrued revenue 45,353,802
Other receivables 10,496,438
Prepaid expenses 2,907,560
Deposits 7,302,495
Total current assets 659,869,884
Noncurrent assets
Unrestricted cash and cash equivalents in Rate Stabilization Fund 42,509,163 Deposits 1,188,523
Loan receivable 288,837
Lease asset, net of amortization 692,540
Capital assets:
Non-depreciable assets 9,386,864
Furniture and equipment, net of depreciation 429,537
Total capital assets 9,816,401
Total noncurrent assets 54,495,464
Total assets 714,365,348
Current liabilities
Accrued cost of electricity 115,369,664
Accounts payable 3,279,630
Advances from grantors 9,085,327
Other accrued liabilities 2,384,401
User taxes and energy surcharges due to other governments 8,544,238 Lease liability 846,970
Security deposits - energy suppliers 4,788,328
Total current liabilities 144,298,558
Noncurrent liabilities
Security deposits - energy suppliers 3,600,000
Total liabilities 147,898,558
Rate Stabilization Fund 42,509,163
Net investment in capital assets 9,661,971
Unrestricted 514,295,656
Total net position $ 523,957,627
NET POSITION
AVA COMMUNITY ENERGY
STATEMENT OF NET POSITION
As of March 31, 2024
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
Consent Item 15
Three Months Year-to-Date
OPERATING REVENUES
Electricity sales, net 215,988,350$ 689,591,086 $
Revenue directed from Rate Stabilization Fund 10,504,837 10,504,837 Liquidated damages 4,096,427 9,538,197
Grant revenue 382,448 1,051,241
Other operating revenues 124,345 413,105
Total operating revenues 231,096,407 711,098,466
OPERATING EXPENSES
Cost of electricity 169,579,483 528,407,687
Contract services 4,785,927 13,549,330
Staff compensation 4,348,572 12,013,957
Other operating expenses 730,845 3,839,468
Depreciation and amortization 390,656 456,486
Total operating expenses 179,835,483 558,266,928
Operating income (loss) 51,260,924 152,831,538
NONOPERATING REVENUES (EXPENSES)
Investment income 4,085,659 9,069,387
Financing costs (391,370) (599,574)
Nonoperating revenues (expenses), net 3,694,289 8,469,813 CHANGE IN NET POSITION 54,955,213 161,301,351
Net position at beginning of period 469,002,414 362,656,276 Net position at end of period $ 523,957,627 $ 523,957,627
AVA COMMUNITY ENERGY
STATEMENT OF REVENUES, EXPENSES
AND CHANGE IN NET POSITION
Nine Months Ended March 31, 2024
See accountants' compilation report. 3
Consent Item 15
Three Months Year-to-Date
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 228,414,179 $ 722,657,165
Other operating receipts 7,905,764 14,065,138
Receipts of supplier security deposits 50,498 6,020,858 Payments to suppliers for electricity (160,246,009) (475,011,624) Payments for other goods and services (5,455,799) (17,923,141) Payments of staff compensation (4,189,718) (11,605,696) Deposits and collateral paid (534,941) (7,751,824)
Tax and surcharge payments to other governments (7,952,843) (26,343,602) Net cash provided (used) by operating activities 57,991,131 204,107,274
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Payments of financing costs (226,718) (329,852)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (118,303) (236,607)
Payments to acquire capital assets (132,595) (310,897)
Net cash (used) by capital and related financing activities (250,898) (547,504)
CASH FLOWS FROM INVESTING ACTIVITIES
Principal payments received of loan receivable 191,135 202,184 Investment income received 4,180,185 8,808,146
Net cash provided (used) by investing activities 4,371,320 9,010,330 Net change in cash and cash equivalents 61,884,835 212,240,248 Cash and cash equivalents at beginning of period 495,404,646 345,049,233 Cash and cash equivalents at end of period $ 557,289,481 $ 557,289,481 Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents (current) $ 514,780,318 $ 514,780,318 Unrestricted cash and cash equivalents (noncurrent) 42,509,163 42,509,163 Cash and cash equivalents $ 557,289,481 $ 557,289,481
Nine Months Ended March 31, 2024
STATEMENT OF CASH FLOWS
AVA COMMUNITY ENERGY
See accountants' compilation report. 4
Consent Item 15
Three Months Year-to-Date
Operating income (loss) 51,260,924$ $ 152,831,538
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 217,520 456,486
(Increase) decrease in:
Accounts receivable (2,174,912) 5,169,389
Market settlements receivable - 807,102
Other receivables (6,828,468) (10,144,629)
Accrued revenue 5,253,108 413,527
Prepaid expenses 25,636 15,480,524
Deposits (255,463) (7,412,853)
Increase (decrease) in:
Accrued cost of electricity 14,988,851 50,233,529
Accounts payable 397,576 (1,256,581)
Other accrued liabilities 162,561 429,148
Advances from grantors 4,597,644 4,597,644
Deferred revenue (121,769) 512,000
User taxes due to other governments 1,394,793 1,139,560 Security deposits from energy suppliers (422,032) 1,355,728 Rate Stabilization Fund (10,504,837) (10,504,837)
Net cash provided (used) by operating activities 57,991,131 $ $ 204,107,274
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Nine Months Ended March 31, 2024
STATEMENT OF CASH FLOWS (Continued)
AVA COMMUNITY ENERGY
See accountants' compilation report. 5
Consent Item 15