AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER 1 AGENDA
Meeting of the Finance and Risk Management Committee
San Diego Community Power (SDCP)
April 7, 2022
3:00 p.m.
The meeting will proceed as a teleconference meeting in compliance with waivers to certain provisions of the Brown Act provided for under Government Code section 54953(e)(1)(A), in relation to the COVID-19 State of Emergency and recommended social distancing measures. There will be no location for in-person attendance. In compliance with the Brown Act, SDCP is providing alternatives to in-person attendance for viewing and participating in the meeting. Further details are below.
Note: Any member of the public may provide comments to the Finance and Risk Management Committee (FRMC) on any agenda item. When providing comments to the FRMC, it is requested that you provide your name and city of residence for the record. Commenters are requested to address their comments to the FRMC as a whole through the Chair. Comments may be provided in one of the following manners:
1. Providing Oral Comments During Meeting. To provide comments during the meeting, join the Zoom meeting by computer, mobile phone, or dial-in number. On Zoom video conference by computer or mobile phone, use the “Raise Hand” feature. This will notify the moderator that you wish to speak during a specific item on the agenda or during non-agenda Public Comment.
Members of the public will not be shown on video but will be able to speak when called upon. If joining the meeting using the Zoom dial-in number, you can raise your hand by pressing *9.
Comments will be limited to three (3) minutes.
2. Written Comments. Written public comments must be submitted prior to the start of the meeting by using this (web form). Please indicate a specific agenda item when submitting your comment.
All written comments received prior to the meeting will be provided to the FRMC members in writing. In the discretion of the Chair, the first ten (10) submitted comments shall be stated into the record of the meeting. Comments read at the meeting will be limited to the first 400 words.
Comments received after the start of the meeting will be collected, sent to the FRMC members in writing, and be part of the public record.
If you have anything that you wish to be distributed to the FRMC, please provide it via [email protected], who will distribute the information to the Members.
The public may participate using the following remote options:
Teleconference Meeting Webinar
https://zoom.us/j/93476863568
Telephone (Audio Only)
(669) 900-6833 or (253) 215-8782 | Webinar ID: 934 7686 3568 AGENDA – FINANCE AND RISK MANAGEMENT COMMITTEE – SAN DIEGO COMMUNITY POWER 2 Welcome
Roll Call
Public Comment for Items Not on the Agenda
Items to be Added, Withdrawn, or Reordered on the Agenda
MEETING AGENDA
1. Report on Treasurer’s Report for Period Ending 2/28/22 Recommendation: Receive and File Treasurer’s Report for Period Ending 2/28/22 Committee Member Announcements
Committee Members may briefly provide information to other members and the public. There is to be no discussion or action taken on comments made by Directors unless authorized by law.
Adjournment
Availability of Committee Documents
Copies of the agenda and agenda packet are available at https://sdcommunitypower.org/resources/meeting-notes/. Late-arriving documents related to a FRMC meeting item which are distributed to a majority of the Members prior to or during the FRMC meeting are available for public review as required by law. Previously, public records were available for inspection at San Diego Community Power, Moniker Commons located at 2869 Historic Decatur Road San Diego, CA 92106. However, due to the Governor’s Executive Orders N-25-20 and N-29-20 and the need for social distancing, in-person inspection is now suspended. Public records, including agenda-related documents, can instead be requested electronically at [email protected] or by mail to SDCP at, 815 E Street, Suite 12716, San Diego, CA 92112. The documents may also be posted at the above website.
SAN DIEGO COMMUNITY POWER
Staff Report – Item 1
-------------------------------------------------------------------------------------------------------------------- To: Financial and Risk Management Committee
From: Eric W. Washington, Chief Financial Officer
Via: Bill Carnahan, Interim Chief Executive Officer
Subject: Treasurer’s Report –Presentation of Financial Results for Fiscal Year 2022 Period ended 2/28/22
Date: April 7, 2022
--------------------------------------------------------------------------------------------------------------------
RECOMMENDATION
Receive and File Report
BACKGROUND
San Diego Community Power (SDCP) maintains its accounting records on a full accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) as applicable to governmental enterprise funds.
SDCP has prepared year-to-date financial statements for the period ended February 28, 2022, along with budgetary comparisons.
ANALYSIS AND DISCUSSION
Financial results for the period ended 2/28/22: $228.33 million in net operating revenues were reported compared to $230.80 million budgeted for the period. $222.15 million in total expenses were reported (including $217.66 million in energy cost) compared to $223.85 million budgeted for the period (including $217.37 million budgeted for energy costs). After expenses, SDCP’s change in net position of $6.12 million was reported.
The following is a summary to actual results compared to the Fiscal Year 2022 Budget. • Net operating revenues finished -$2.47 million (or -1.1 percentage points) under the amended budget
• Operating expenses finished -$1.70 million (or -0.8 percentage points) under the amended budget
Financial results for the period were under the projections presented in the year-to-date proforma. SDCP’s change in net position was -22.81% under the projection mainly due to lower than projected revenue. The following is a summary to actual results compared to the fiscal year-to-date proforma.
FISCAL IMPACT
N/A
ATTACHMENTS
Attachment A: 2022 Year-to-Date Period Ended 2/28/22 Financial Statements 1 ACCOUNTANTS’ COMPILATION REPORT
Management
San Diego Community Power
Management is responsible for the accompanying financial statements of San Diego Community Power (a California Joint Powers Authority) which comprise the statement of net position as of February 28, 2022, and the related statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period 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. 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
March 23, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com Current assets
Cash and cash equivalents 11,068,424 $
Accounts receivable, net 21,438,377
Accrued revenue 13,028,594
Prepaid expenses 1,192,789
Other receivables 31,983
Deposits 5,752,057
Total current assets 52,512,224
Noncurrent assets
Restricted cash 9,000,000
Deposits 3,450,000
Total noncurrent assets 12,450,000
Total assets 64,962,224
Current liabilities
Accrued cost of energy 43,514,729
Accounts payable 392,323
Other accrued liabilities 338,138
Security deposits 570,000
Interest payable 54,683
Bank note payable 22,840,082
Total current liabilities 67,709,955
Noncurrent liabilities
Other noncurrent liabilities 517,741
Loans payable 5,000,000
Total noncurrent liabilities 5,517,741
Total liabilities 73,227,696
Unrestricted (8,265,472)
Total net position (deficit) (8,265,472) $
NET POSITION
SAN DIEGO COMMUNITY POWER
STATEMENT OF NET POSITION
As of February 28, 2022
ASSETS
LIABILITIES
See accountants' compilation report. 2
OPERATING REVENUES
Electricity sales, net 228,330,099 $
OPERATING EXPENSES
Cost of energy 217,660,392
Contract services 1,598,750
Staff compensation 2,047,811
General and administration 847,509
Total operating expenses 222,154,462
Operating income (loss) 6,175,637
NONOPERATING EXPENSES
Interest and financing expense 392,472
Nonoperating expenses 392,472
CHANGE IN NET POSITION 5,783,165
Net position at beginning of period (14,048,637)
Net position at end of period (8,265,472) $
SAN DIEGO COMMUNITY POWER
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Eight Months Ended February 28, 2022
See accountants' compilation report. 3
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 207,912,459 $
Other operating receipts 5,596,638
Payments to suppliers for electricity (192,126,582)
Payments for goods and services (2,519,645)
Payments to employees for services (1,979,686)
Payments for deposits and collateral (6,573,708)
Payments for state surcharges (560,365)
Net cash provided (used) by operating activities 9,749,111
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Interest and related expense payments (401,253)
Net cash provided (used) by non-capital
financing activities (401,253)
Net change in cash and cash equivalents 9,347,858
Cash and cash equivalents at beginning of period 10,720,566 Cash and cash equivalents at end of period 20,068,424 $ Reconciliation to the Statement of Net Position
Cash and cash equivalents (unrestricted) 11,068,424
Restricted cash 9,000,000
Cash and cash equivalents 20,068,424 $
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS
Eight Months Ended February 28, 2022
See accountants' compilation report. 4
Operating income 6,175,637 $
Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities
Provision for uncollectible accounts 2,306,365
(Increase) decrease in:
Accounts receivable (22,628,621)
Accrued revenue (808,285)
Other receivables 4,011,289
Prepaid expenses (1,192,789)
Deposits (5,302,057)
Increase (decrease) in:
Accrued cost of electricity 27,370,008
Accounts payable 30,041
Other accrued liabilities 84,988
Due to State of California 152,535
Supplier security deposits (450,000)
Net cash provided (used) by operating activities 9,749,111 $
SAN DIEGO COMMUNITY POWER
STATEMENT OF CASH FLOWS (continued)
Eight Months Ended February 28, 2022
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
See accountants' compilation report. 5