Audit & Finance Committee Meeting
October 12, 2022
Peninsula Clean Energy
Agenda
• Call to Order / Roll Call
• Public Comment (for items not on the Agenda)
• Action to set the Agenda and Approve Consent Items
• Regular Agenda
Chair Report
Staff Report
Peninsula Clean Energy
Staff Report
• FY 2021-2022 Financial Statements Complete
• Some changes from preliminary financials presented on August 15, 2022 • -$70,000 difference in expenses due to slight changes in depreciation and amortization • Pisenti & Brinker LLP completing audit for FY 2021-2022 o Audit firm, will present audit process and results
o Audit process to include auditors meeting with A&F Committee members 5 Peninsula Clean Energy
Report to the Audit Committee
October 12, 2022
Introduction
• Brett Bradford, CPA
• Audit Partner
• 19 years in public accounting and performing audits of government entities
• Currently working with several CCA’s throughout California • Aliandra Schaffer
• Senior Associate
• 3 years in public accounting and performing audits of governments (CCA’s)
Results of current year audit:
• The audit is near completion. We expect to report the following:
• Unmodified opinion – Based on our audit, the financial statements are materially accurate.
• No significant deficiencies or material weakness in
internal control noted.
Audit of the year ended June 30, 2022
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, 2022
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, 2022
Significant areas of focus
• Accrued Cost of Electricity
• Review subsequent bills from electricity providers and cash payments • Accrued REC expense
• Supplier Security Deposits
• Reviewed contracts and determined completeness of amounts recorded • Financial Statement Note Disclosures – Complete and without bias • Single Audit
Required Board Communications
• The significant accounting policies
adopted by PCE throughout the
periods audited appear appropriate
and consistently applied.
• 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 are not expecting to 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
Aliandra Schaffer: 707-577-1535
Questions?
Committee Members’ Reports