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, 2024, and the related statements of revenues, expenses, and changes in net position, and the statement of cash flows for the three months 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 7, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents - unrestricted 388,231,317 $
Cash and cash equivalents - restricted 8,015,906
Accounts receivable, net of allowance 84,866,701
Accrued revenue 45,632,247
Other receivables 3,119,744
Prepaid expenses 4,667,967
Deposits 4,212,125
Investments 31,960,980
Total current assets 570,706,987
Noncurrent assets
Cash and cash equivalents in Rate Stabilization Fund - unrestricted 57,472,293 Deposits 1,090,907
Investments 286,256,555
Loan receivable 2,336,589
Capital assets, net of depreciation and amortization 9,952,531 Total noncurrent assets 357,108,875
Total assets 927,815,862
Current liabilities
Accrued cost of electricity 164,818,978
Accounts payable 3,194,335
Advances from grantors 8,015,906
Other accrued liabilities 1,791,160
User taxes and energy surcharges due to other governments 8,122,890 Lease liability 252,660
Security deposits - energy suppliers 5,746,750
Total current liabilities 191,942,679
Noncurrent liabilities
Security deposits - energy suppliers 3,600,000
Total liabilities 195,542,679
Rate Stabilization Fund 79,916,987
Net investment in capital assets 9,699,871
Unrestricted 642,656,325
Total net position 652,356,196 $
NET POSITION
AVA COMMUNITY ENERGY
STATEMENT OF NET POSITION
As of December 31, 2024
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
Three Months Year-to-Date
OPERATING REVENUES
Electricity sales for resale
Electricity sales, net 211,785,121 $ 483,412,777 $
Liquidated damages 3,262,500 9,577,500
Grant revenue 1,077,421 1,486,448
Other operating revenues 16,906 118,637
Total operating revenues 216,141,948 494,595,362
OPERATING EXPENSES
Cost of electricity 182,338,646 359,938,505
Contract services 5,778,818 11,831,766
Staff compensation 4,606,365 9,645,632
Other operating expenses 2,394,232 3,889,842
Depreciation and amortization 226,822 458,306
Total operating expenses 195,344,883 385,764,051
Operating income (loss) 20,797,065 108,831,311
NONOPERATING REVENUES (EXPENSES)
Investment income 4,116,483 8,215,210
Interest expense (9,544) (24,356)
Nonoperating revenues (expenses), net 4,106,939 8,190,854 CHANGE IN NET POSITION 117,022,165 24,904,004
Net position at beginning of period 627,452,192 535,334,031 Net position at end of period 652,356,196 $ 652,356,196 $
AVA COMMUNITY ENERGY
STATEMENT OF REVENUES, EXPENSES
AND CHANGE IN NET POSITION
Three Months and Year-to-Date Ended December 31, 2024
See accountants' compilation report. 3
Three Months Year-to-Date
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 233,039,266 $ 517,428,566 $
Receipts of supplier security deposits 3,932,252 3,932,252 Other operating receipts 3,366,566 10,161,737
Payments to suppliers for electricity (155,166,501) (340,806,306) Payments for other goods and services (11,456,259) (17,551,396) Payments for staff compensation (4,788,384) (9,577,762) Payments for deposits and collateral (3,894,000) (8,894,000) Payments of taxes and surcharges to other governments (8,679,853) (17,921,289) Net cash provided by operating activities 56,353,087 136,771,802
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (243,705) (480,312)
Purchases of capital assets (41,881) (87,745)
Net cash (used) by capital and related financing activities (285,586) (568,057)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 4,363 4,363 Principal payments received of loan receivable 3,638 7,226 Investment income received 3,019,027 7,147,896
Purchase of investments (319,172,441) (319,172,441)
Loan issued (2,057,344) (2,057,344)
Net cash provided (used) by investing activities (318,202,757) (314,070,300) Net change in cash and cash equivalents (262,135,256) (177,866,555) Cash and cash equivalents at beginning of period 715,854,772 631,586,071 Cash and cash equivalents at end of period 453,719,516 $ 453,719,516 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted (current) 388,231,317 $ 388,231,317 $ Cash and cash equivalents - restricted (current) 8,015,906 8,015,906 Cash and cash equivalents (noncurrent) 57,472,293 57,472,293 Cash and cash equivalents 453,719,516 $ 453,719,516 $
Three Months and Year-to-Date Ended December 31, 2024
STATEMENT OF CASH FLOWS
AVA COMMUNITY ENERGY
See accountants' compilation report. 4
Three Months Year-to-Date
Operating income (loss) 20,797,065 $ 108,831,311 $
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 226,822 458,306
(Increase) decrease in:
Accounts receivable 6,131,976 96,104
Market settlements receivable 1,534,027 -
Other receivables 283,095 (756,574)
Accrued revenue 6,644,550 15,320,146
Prepaid expenses (2,091,890) (1,842,426)
Deposits 6,931,232 1,931,232
Increase (decrease) in:
Accrued cost of electricity 18,734,321 15,519,469
Accounts payable (3,925,836) (2,218,473)
Other accrued liabilities (181,825) 59,725
Advances from grantors (1,005,657) (1,036,245)
Deferred revenue 97,958 (1,686,978)
User taxes due to other governments (202,233) 678,253
Security deposits from energy suppliers 2,379,482 1,417,952 Net cash provided (used) by operating activities 56,353,087 $ 136,771,802 $
NONCASH INVESTING ACTIVITIES
Unrealized appreciation (depreciation) and
timing differences in investment income 1,097,456 $ 1,067,314 $
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Three Months and Year-to-Date Ended December 31, 2024
STATEMENT OF CASH FLOWS (Continued)
AVA COMMUNITY ENERGY
See accountants' compilation report. 5