Consent Item 7
Consent Item 7
To: Ava Community Energy Authority
From: Russell Mills, CFO
Subject: Fiscal Year 2025-2026 Q1 Financial Statements
Date: December 17, 2025
__________________________________________________________________ Summary/Recommendation
This memo updates the Board on Ava’s financial position as of September 30, 2025.
Financial Impact
This is an informational item
Analysis and Context
Ava’s current fiscal year (FY) runs from July 1, 2025, through June 30, 2026. Financial position statements are generated every quarter and are audited annually by a third party. The financial statements presented today represent Ava’s financial position and activity for the quarter ending September 30, 2025, and the FY to date. These statements are prepared by Ava’s accountant, Maher Accountancy.
Committee Recommendation
Attachments
A. Fiscal Year 2025-2026 Q1 Financial Statements
B. Fiscal Year 2025-2026 Q1 Budgetary Comparison Statements 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 September 30, 2025, 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.
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
November 4, 2025
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 $ 438,449,908
Cash and cash equivalents - restricted 2,715,372
Accounts receivable, net of allowance 129,804,349
Accrued revenue 68,390,562
Other receivables 13,885,706
Prepaid expenses 6,034,298
Deposits 5,835,232
Investments 43,158,476
Total current assets 708,273,903
Noncurrent assets
Deposits 1,135,937
Investments 298,867,687
Loans receivable 2,737,260
Capital assets, net of depreciation and amortization 22,141,481 Total noncurrent assets 324,882,365
Total assets 1,033,156,268
Current liabilities
Accrued cost of electricity 156,354,191
Accounts payable 5,058,825
Advances from grantors 2,715,372
Other accrued liabilities 2,248,244
User taxes and energy surcharges due to other governments 10,938,690 Lease liability 297,729
Security deposits - energy suppliers 4,585,670
Total current liabilities 182,198,721
Noncurrent liabilities
Lease liability 11,818,971
Total liabilities 194,017,692
Rate Stabilization Fund 188,014,795
Net investment in capital assets 10,024,781
Unrestricted 641,099,000
Total net position $ 651,123,781
NET POSITION
AVA COMMUNITY ENERGY
STATEMENT OF NET POSITION
As of September 30, 2025
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
Attachment Consent Item 7A
Year-to-Date
OPERATING REVENUES
Electricity sales, net 332,421,835$
Grant revenue 1,306,793
Other operating revenues 2,378,428
Total operating revenues 336,107,056
OPERATING EXPENSES
Cost of electricity 229,257,457
Contract services 6,010,361
Staff compensation 6,137,542
Other operating expenses 3,836,615
Depreciation and amortization 266,263
Total operating expenses 245,508,238
Operating income (loss) 90,598,818
NONOPERATING REVENUES (EXPENSES)
Investment income 6,865,765
Interest expense (238,668)
Nonoperating revenues (expenses), net 6,627,097
CHANGE IN NET POSITION 97,225,915
Net position at beginning of period 553,897,866
Net position at end of period $ 651,123,781
AVA COMMUNITY ENERGY
STATEMENT OF REVENUES, EXPENSES
AND CHANGE IN NET POSITION
Three Months Ended September 30, 2025
See accountants' compilation report. 3
Attachment Consent Item 7A
Year-to-Date
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 319,458,477$
Receipts from grantors 692,178
Other operating receipts 1,056,256
Receipts of supplier security deposits 1,203,539
Payments to suppliers for electricity (218,547,159)
Payments for other goods and services (11,399,327)
Payments for staff compensation (6,113,006)
Payments of deposits and collateral (5,840,748)
Payments of taxes and surcharges to other governments (10,534,256) Net cash provided by operating activities 69,975,954
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchases of capital assets (1,270,542)
Net cash used by capital and related financing activities (1,270,542)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 12,593,685 Investment income received 1,999,145
Loan principal received 5,066
Purchase of investments (19,881,950)
Loan issued (750,000)
Net cash provided (used) by investing activities (6,034,054) Net change in cash and cash equivalents 62,671,358
Cash and cash equivalents at beginning of period 378,493,922 Cash and cash equivalents at end of period $ 441,165,280 Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted 438,449,908$
Cash and cash equivalents - restricted 2,715,372
Cash and cash equivalents $ 441,165,280
Three Months Ended September 30, 2025
STATEMENT OF CASH FLOWS
AVA COMMUNITY ENERGY
See accountants' compilation report. 4
Attachment Consent Item 7A
Year-to-Date
Operating income (loss) 90,598,818$
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 266,263
(Increase) decrease in:
Accounts receivable (37,157,547)
Other receivables (7,161,630)
Accrued revenue (7,213,304)
Prepaid expenses (833,443)
Deposits (5,813,539)
Increase (decrease) in:
Accrued cost of electricity 18,539,799
Accounts payable (915,902)
Other accrued liabilities 11,093
Advances from grantors (975,865)
Deferred revenue (29,560)
User taxes due to other governments 2,483,452
Security deposits from energy suppliers (212,461)
Rate Stabilization Fund 18,389,780
Net cash provided (used) by operating activities 69,975,954$
NONCASH INVESTING ACTIVITIES
Change in fair value of investments 4,993,065$
Change in interest receivable (126,445)$
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Three Months Ended September 30, 2025
STATEMENT OF CASH FLOWS (Continued)
AVA COMMUNITY ENERGY
See accountants' compilation report. 5
Attachment Consent Item 7A
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
AVA Community Energy
Management is responsible for the accompanying special purpose Budgetary Comparison Schedule – Operating Fund of AVA Community Energy (a California Joint Powers Authority for the three months ended September 30, 2025, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. 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 statement 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, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of the Authority.
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
November 4, 2025
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Attachment Consent Item 7B
2025/26 YTD
Budget
2025/26 YTD
Actual
2025/26 YTD
Budget
Variance
Over (Under)
2025/26 YTD
Actual/ Budget
%
2025/26 Annual
Budget
2025/26 Budget
Remaining
REVENUE
Electricity Sales $ 354,648,000 $ 335,779,631 $ (18,868,369) 95% $ 869,170,000 $ 533,390,369 GASB 62 Revenue (Deferral) - - N/A - 35,327,000 35,327,000 Uncollectible (3,546,480) (3,357,796) 188,684 95% (8,692,000) (5,334,204) Total Revenue and Other Sources 351,101,520 332,421,835 (18,679,685) 95% 895,805,000 563,383,165
EXPENDITURES AND OTHER USES
CURRENT EXPENDITURES
Cost of energy 232,374,839 229,257,457 (3,117,382) 99% 836,970,000 607,712,543 Energy Services
Data Management/CRM 2,455,801 2,495,253 39,452 102% 10,081,000 7,585,747 Billing & Metering 781,391 804,046 22,655 103% 3,208,000 2,403,954 Scheduling 187,194 183,789 (3,405) 98% 767,000 583,211
Total Energy Services 3,424,386 3,483,088 58,702 102% 14,056,000 10,572,912 Overhead Operating Expenses
Personnel 7,409,750 6,137,542 (1,272,208) 83% 29,639,000 23,501,458 Marketing & Communications 968,000 388,123 (579,877) 40% 3,872,000 3,483,877 Legal, Policy, & Regulatory Affairs 1,060,750 778,465 (282,285) 73% 4,243,000 3,464,535 Other Professional Services 879,500 640,126 (239,374) 73% 3,518,000 2,877,874 General & Administrative 1,773,750 1,198,481 (575,269) 68% 7,095,000 5,896,519 Total Overhead Operating Expenses 12,091,750 9,142,737 (2,949,013) 76% 48,367,000 39,224,263 Total Current Expenditures 247,890,975 241,883,282 (6,007,693) 98% 899,393,000 657,509,718
OTHER SOURCES AND USES
Investment Income 3,369,000 6,816,168 3,447,168 202% 15,066,000 8,249,832 Other Income 12,300 1,321,295 1,308,995 10742% 49,000 (1,272,295) Interest and Financing Costs (240,000) (225,205) 14,795 94% (1,087,000) (861,795) Local Development (Transfer to LD Fund Budget) - - - N/A (10,190,000) (10,190,000) Capital expenditures (250,000) (523,951) (273,951) 210% (250,000) 273,951 Total Other Sources and Uses 2,891,300 7,388,307 4,497,007 0% 3,588,000 (3,800,307) Net Increase (Decrease) $ 106,101,845 $ 97,926,860 $ (8,174,985) 92% $ -
AVA COMMUNITY ENERGY
OPERATING FUND
BUDGETARY COMPARISON SCHEDULE
Three Months Ended September 30, 2025
See accountants' compilation report. 2
Attachment Consent Item 7B
2025/26 Annual
Budget
2025/26 YTD
Actual
2025/26 Budget
Remaining
REVENUE AND OTHER SOURCES
Transfer from Operating Fund $ 10,190,000 $ 10,190,000 - $ Grants/Credits - 2,363,926 (2,363,926)
Interest income - 49,597 (49,597)
Total Revenues and other sources 10,190,000 2,413,523 7,776,477
EXPENDITURES AND OTHER USES
CURRENT EXPENDITURES
Program expenses 10,190,000 3,936,506 6,253,494
Total Expenditures and other uses 10,190,000 3,936,506 6,253,494 Net Increase (Decrease) (1,522,983) -
Fund balance at beginning of period 78,261,745 78,261,745 Fund balance at end of period $ 78,261,745 $ 76,738,762
LOCAL DEVELOPMENT FUND
BUDGETARY COMPARISON SCHEDULE
Three Months Ended September 30, 2025
Attachment Consent Item 7B