1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Ava Community Energy Authority
Management is responsible for the accompanying financial statements of Ava Community Energy Authority (a California Joint Powers Authority) which comprise the statement of net position as of March 31, 2026, and the related statements of revenues, expenses, and changes in net position, and the statement of cash flows for the year to date and 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 Ava Community Energy Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
May 11, 2026
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents - unrestricted 503,347,016$
Cash and cash equivalents - restricted 2,543,836
Accounts receivable, net of allowance 66,065,091
Accrued revenue 23,967,367
Other receivables 8,483,581
Prepaid expenses 5,896,907
Investments 17,852,415
Total current assets 628,156,213
Noncurrent assets
Deposits 992,749
Investments 329,563,117
Loans receivable 2,629,221
Capital assets, net of depreciation and amortization 23,395,196 Total noncurrent assets 356,580,283
Total assets 984,736,496
Current liabilities
Accrued cost of electricity 113,243,613
Accounts payable 4,760,109
Advances from grantors 2,543,836
Other accrued liabilities 2,685,137
User taxes and energy surcharges due to other governments 8,481,515 Lease liability 445,735
Security deposits - energy suppliers 4,183,100
Total current liabilities 136,343,045
Noncurrent liabilities
Lease liability 11,590,429
Total noncurrent liabilities 11,590,429
Total liabilities 147,933,474
Rate Stabilization Fund 188,014,795
Net investment in capital assets 10,460,782
Unrestricted 638,327,445
Total net position 648,788,227$
NET POSITION
AVA COMMUNITY ENERGY AUTHORITY
STATEMENT OF NET POSITION
As of March 31, 2026
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
Three Months Year-to-Date
OPERATING REVENUES
Electricity sales, net 149,431,243$ 737,308,746$
Grant revenue 107,344 1,168,639
Other operating revenues 2,064,182 3,952,009
Total operating revenues 151,602,769 742,429,394
OPERATING EXPENSES
Cost of electricity 180,940,821 616,094,809
Contract services 5,714,840 17,101,843
Staff compensation 6,708,614 18,587,665
Other operating expenses 4,502,221 11,960,464
Depreciation and amortization 274,366 814,871
Total operating expenses 198,140,862 664,559,652
Operating income (loss) (46,538,093) 77,869,742
NONOPERATING REVENUES (EXPENSES)
Investment income 4,544,443 17,738,138
Interest expense (236,140) (717,519)
Nonoperating revenues (expenses), net 4,308,303 17,020,619 CHANGE IN NET POSITION (42,229,790) 94,890,361
Net position at beginning of period 691,018,017 553,897,866 Net position at end of period 648,788,227$ 648,788,227$
AVA COMMUNITY ENERGY AUTHORITY
Nine Months Ended March 31, 2026
AND CHANGE IN NET POSITION
STATEMENT OF REVENUES, EXPENSES
See accountants' compilation report. 3
Three Months Year-to-Date
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 233,005,708$ 851,328,437$
Receipts from grantors 21,238 382,488
Receipts from wholesale sales and other operating receipts 6,792,474 13,439,918 Receipts of supplier security deposits - 31,044,287
Payments to suppliers for electricity (188,306,195) (655,099,256) Payments for other goods and services (8,625,690) (30,489,769) Payments for staff compensation (6,963,572) (18,400,115) Payments of deposits and collateral - (29,840,748)
Payments of taxes and surcharges to other governments (12,595,254) (31,812,032) Net cash provided by operating activities 23,328,709 130,553,210
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Lease payments (335,632) (559,387)
Purchases of capital assets (439,724) (2,008,064)
Net cash used by capital and related financing activities (775,356) (2,567,451)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales and maturities of investments 111,797,543 174,633,636 Investment income received 7,724,521 12,742,757
Loan principal received 16,415 25,342
Purchase of investments (116,826,128) (187,240,564)
Loan issued - (750,000)
Net cash provided (used) by investing activities 2,712,351 (588,829) Net change in cash and cash equivalents 25,265,704 127,396,930 Cash and cash equivalents at beginning of period 480,625,148 378,493,922 Cash and cash equivalents at end of period $ 505,890,852 $ 505,890,852 Reconciliation to the Statement of Net Position
Cash and cash equivalents - unrestricted 503,347,016$ 503,347,016$ Cash and cash equivalents - restricted 2,543,836 2,543,836 Cash and cash equivalents $ 505,890,852 $ 505,890,852
Nine Months Ended March 31, 2026
STATEMENT OF CASH FLOWS
AVA COMMUNITY ENERGY AUTHORITY
See accountants' compilation report. 4
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Three Months Year-to-Date
Operating income (loss) (46,538,093)$ 77,869,742$
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 274,366 814,871
(Increase) decrease in:
Accounts receivable 45,853,336 26,581,710
Other receivables 1,577,651 (1,713,583)
Accrued revenue 30,034,540 37,209,891
Prepaid expenses 889,962 (696,052)
Deposits 95,706 (29,575,969)
Increase (decrease) in:
Accrued cost of electricity (2,982,007) (24,570,779)
Accounts payable (20,882) (2,206,100)
Other accrued liabilities (179,923) 117,479
Advances from grantors (86,107) (1,147,401)
Deferred revenue (517,914) 227,627
User taxes due to other governments (4,899,396) 26,277
Security deposits from energy suppliers (172,530) 29,225,717 Rate Stabilization Fund - 18,389,780
Net cash provided (used) by operating activities 23,328,709$ 130,553,210$
NONCASH INVESTING ACTIVITIES
Change in fair value of investments (3,240,852)$ 5,163,669$ Change in interest receivable 60,774$ (168,288)$
NONCASH CAPITAL FINANCING ACTIVITIES
Capital acquisitions included in accounts payable and other liabilities 681,213$ 898,250$ Nine Months Ended March 31, 2026
STATEMENT OF CASH FLOWS (Continued)
AVA COMMUNITY ENERGY AUTHORITY
See accountants' compilation report. 5
FY 25-26 Q3 Financial Highlights
Summary of financial statements:
• Cash balances increased by $97M or 24% compared to the same period last fiscal year. • Gross Accounts receivable (A/R) increased by 7.8% compared to the same period last fiscal year.
This is primarily due to new territories being added after March 31, 2025. While gross A/R increased, net A/R decreased by 7.7% due to the increase in our allowance for uncollectible accounts.
• Revenue increased by $49M or 7.1% compared to the same period last fiscal year. With electricity revenue increasing 8.4% or $57M compared to prior year. If we exclude the new territories added (Stockton and Lathrop), electricity revenue decreased by approximately $68M or 9.8% compared to same period last fiscal year.
• Gross margin is consistent year over year with cost of electricity at 83.6% of electricity revenue in current fiscal vs 83.9% in prior year.
• Overhead expenses increased 22.2% compared to same period last fiscal year. This is due to increased staff expenses (13 net new hires after 3/31/25) and program incentives related to new programs going live (Bike Electric and Smart Home Battery). 2 Finance Updates:
• We are transitioning our bill payment platform from Bill.com to Ramp on July 1st. Ramp provides better controls and visibility into spend across credit cards, expense reimbursements, and vendor payments. It incorporates procurements and budgets into the approval process to ensure that expenses are aligned with budget and contracts prior to approval
• We are building a Google Form for Board members to submit expense reimbursements and attach receipts to streamline the process. This should be live by December.
• We have begun recruiting for a Sr Associate, Accounting & Finance to help with Local Development reporting, Prepay tracking, and treasury reporting. We hope to have this person onboarded by end of June. This is a replacement role.
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