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, 2025, and the related statements of revenues, expenses, and changes in net position, and the statement of cash flows for the three months and nine 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
June 6, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents - unrestricted 347,133,805$
Cash and cash equivalents - restricted 4,486,257
Accounts receivable, net of allowance 71,603,581
Accrued revenue 38,912,044
Other receivables 5,123,810
Prepaid expenses 3,477,847
Deposits 3,918,125
Investments 39,653,617
Total current assets 514,309,086
Noncurrent assets
Cash and cash equivalents in Rate Stabilization Fund - unrestricted 57,597,693 Deposits 1,075,786
Investments 297,288,479
Loan receivable 2,104,299
Capital assets, net of depreciation and amortization 9,732,613 Total noncurrent assets 367,798,870
Total assets 882,107,956
Current liabilities
Accrued cost of electricity 159,183,829
Accounts payable 4,616,860
Advances from grantors 4,486,257
Other accrued liabilities 1,749,275
User taxes and energy surcharges due to other governments 7,983,278 Security deposits - energy suppliers 7,209,453
Total current liabilities 185,228,952
Noncurrent liabilities
Security deposits - energy suppliers 3,600,000
Total liabilities 188,828,952
Rate Stabilization Fund 57,597,693
Net investment in capital assets 9,732,613
Unrestricted 625,948,698
Total net position 635,681,311$
NET POSITION
AVA COMMUNITY ENERGY
STATEMENT OF NET POSITION
As of March 31, 2025
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
Three Months Year-to-Date
OPERATING REVENUES
Electricity sales, net 174,362,333$ 657,775,110$
Revenue directed from Rate Stabilization Fund 22,319,294 22,319,294 Liquidated damages 464,475 10,041,975
Grant revenue 1,209,625 2,696,073
Other operating revenues 160,588 279,225
Total operating revenues 198,516,315 693,111,677
OPERATING EXPENSES
Cost of electricity 210,329,690 570,268,195
Contract services 6,081,136 17,912,902
Staff compensation 5,413,542 15,059,174
Other operating expenses 2,121,747 6,011,589
Depreciation and amortization 219,914 678,220
Total operating expenses 224,166,029 609,930,080
Operating income (loss) (25,649,714) 83,181,597
NONOPERATING REVENUES (EXPENSES)
Investment income 8,978,872 17,194,082
Interest expense (4,043) (28,399)
Nonoperating revenues (expenses), net 8,974,829 17,165,683 CHANGE IN NET POSITION (16,674,885) 100,347,280
Net position at beginning of period 652,356,196 535,334,031 Net position at end of period 635,681,311$ 635,681,311$
AVA COMMUNITY ENERGY
STATEMENT OF REVENUES, EXPENSES
AND CHANGE IN NET POSITION
Nine Months Ended March 31, 2025
See accountants' compilation report. 3
Three Months Year-to-Date
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 202,595,026$ 720,023,592$
Receipts of supplier security deposits 1,857,704 5,789,956 Other operating receipts 630,739 10,792,476
Payments to suppliers for electricity (216,072,885) (556,879,191) Payments for other goods and services (6,723,316) (24,274,712) Payments for staff compensation (5,427,689) (15,005,451) Payments for deposits and collateral (3,406,878) (12,300,878) Payments of taxes and surcharges to other governments (8,388,975) (26,310,264) Net cash provided by operating activities (34,936,274) 101,835,528
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments of lease liability (256,702) (737,014)
Purchases of capital assets - (87,745)
Net cash (used) by capital and related financing activities (256,702) (824,759)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 60,977,683 60,982,046 Principal payments of loan received 83,736 90,962
Investment income received 5,603,624 12,751,520
Purchase of investments (75,973,828) (395,146,269)
Loan issued - (2,057,344)
Net cash provided (used) by investing activities (9,308,785) (323,379,085) Net change in cash and cash equivalents (44,501,761) (222,368,316) Cash and cash equivalents at beginning of period 453,719,516 631,586,071 Cash and cash equivalents at end of period 409,217,755$ 409,217,755$ Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted (current) 347,133,805$ 347,133,805$ Cash and cash equivalents - restricted (current) 4,486,257 4,486,257 Cash and cash equivalents (noncurrent) 57,597,693 57,597,693 Cash and cash equivalents 409,217,755$ 409,217,755$
Nine Months Ended March 31, 2025
STATEMENT OF CASH FLOWS
AVA COMMUNITY ENERGY
See accountants' compilation report. 4
Three Months Year-to-Date
Operating income (loss) (25,649,714)$ 83,181,597$
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 219,914 678,220
(Increase) decrease in:
Accounts receivable 13,263,131 13,359,235
Other receivables (2,193,568) (2,950,142)
Accrued revenue 6,720,203 22,040,349
Prepaid expenses 1,190,120 (652,306)
Deposits 294,000 2,225,232
Increase (decrease) in:
Accrued cost of electricity (5,635,149) 9,884,320
Accounts payable 1,422,525 (795,948)
Other accrued liabilities 10,073 69,798
Advances from grantors (3,529,649) (4,565,894)
Deferred revenue (51,958) (1,738,936)
User taxes due to other governments (139,612) 538,641
Security deposits from energy suppliers 1,462,704 2,880,656 Rate Stabilization Fund (22,319,294) (22,319,294)
Net cash provided (used) by operating activities (34,936,274)$ 101,835,528$
NONCASH INVESTING ACTIVITIES
Unrealized appreciation (depreciation) and
timing differences in investment income 3,375,248$ 4,442,562$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Nine Months Ended March 31, 2025
STATEMENT OF CASH FLOWS (Continued)
AVA COMMUNITY ENERGY
See accountants' compilation report. 5