Clean Energy Alliance
Report to the Board of Directors
October 31, 2024
Introduction
• Brett Bradford, CPA
• Audit Partner
• 21 years in public accounting and performing audits of government entities
• Currently working with several CCA’s throughout California • Aliandra Schaffer
• Engagement Supervisor
• 5 years in public accounting and performing audits of governments (CCA’s)
Results of current year audit:
• The audit is complete. We reported:
• Unmodified opinion – Based on our audit, the financial statements are materially accurate.
• A material weakness in internal controls related to the Voluntary Allocation and Market Offer (VAMO)
adjustment was noted.
Audit of the year ended June 30, 2024
Financial Statements
Relative Roles & Responsibilities
• Management is responsible for preparing the Financial Statements and establishing a system of internal control.
• Auditor is responsible for auditing the Financial Statements • Considering risks of material misstatement in the Financial Statements
• Considering internal controls relevant to the Financial Statements • Performing tests of year-end balances based on risk assessment • Evaluating adequacy of disclosures
Risk Assessment for the year ended
June 30, 2024
Our audit is a risk-based audit. Risk assessment procedures include:
• Gain understanding of the entity’s operating characteristics, practices, and procedures.
• Compare to our knowledge of similar entities, industry and professional guidance.
• Review procedures and controls surrounding significant transaction cycles and business processes.
Risk Assessment for the year ended
June 30, 2024
Significant areas of focus
• Revenue recognition
• Accounts receivable and accrued revenue
• Test a sample of customer billings
• Relate total cash received during the year to revenue • Look at cash received subsequent to year-end and relate to A/R • Review revenue recognition through year-end and method for determining (accrued revenue)
• Cash
• Confirmations sent to financial institutions
Risk Assessment for the year ended
June 30, 2024
Significant areas of focus
• Accrued Cost of Electricity
• Review subsequent bills from electricity providers and cash payments • Supplier Security Deposits
• Reviewed contracts and determined completeness of amounts recorded • Financial Statement Note Disclosures – Complete and without bias Required Board Communications
• There were no new material
accounting policies adopted by
Clean Energy Alliance throughout
the period audited.
• No alternative treatments of
accounting principles for material
items in the financial statements
have been discussed with
management.
Required Board Communications
(continued)
• We have not identified any
significant or unusual
transactions or applications of
accounting principles where a
lack of authoritative guidance
exists.
• We did not propose any
adjustments to the
financial statements.
• There have been no disagreements with management concerning the scope of our audit, the application of accounting principles, or the basis for management’s judgments on any significant matters. • We have not encountered any difficulties in dealing with management during the performance of our audit.
Required Board Communications
(continued)
Brett Bradford: 707-577-1582
Questions?