Finance & Risk
Management
Committee
Meeting
October 20, 2022
Welcome
Roll Call
Public Comment for items
Not on the Agenda
Items to be Added,
Withdrawn or Reordered
on the Agenda
REGULAR AGENDA
1. Treasurer’s Report for Period
Ending 8/31/22
2. Preliminary FYE 2022 Auditor’s
Report Presentation by Pisenti
& Brinker
Committee Member
Announcements
Adjournment
Regular
Meeting
Agenda
3 Item 1
Treasurer’s Report for Period Ending 8/31/22
Recommendation: Receive and File Treasurer’s
Report for Period Ending 8/31/22
Presenter:
Dr. Eric Washington,
Chief Financial Officer
4 Results for the period compared to the
adopted budget:
• Net operating revenues 8.0 percentage
points over budget.
• Operating expenses came in 10.5
percentage points over budget
Financial results for the YTD FY23:
• $180.02M in net operating revenues
• $167.73M in total expenses (includes
energy costs of $163.67M or 91% of net
revenues)
• $12.29M change in YTD net position
Item 1: Treasurer’s Report
YTD FY23 Budget v. Actual
Budget Comparison
YTD FY23 as of
8/31/22 (2 mos) FY23 YTD Budget Budget Variance ($) Budget (%) Net Operating Revenues $ 180,024,561 $ 166,743,014 $ 13,281,547 108 Total Expenses $ 167,733,430 $ 151,766,995 $ 15,966,435 111 Change in Net Position $ 12,291,131 $ 14,976,019 $ (2,684,888) 5 Item 1: Treasurer’s Report
Year-to-date financial results compared to
projections:
• Net operating revenues were 8.0% higher
than proforma projections
• Total expenses were 10.4% over the
proforma projections
• Change in net position was $2.5M under
the projected
YTD FY23 Proforma v. Actual
Proforma Comparison
YTD FY23 as of
8/31/22 (2 mos)
FY23 YTD
ProForma
ProForma
Variance ($) Proforma (%)
Net Operating Revenues $ 180,024,561 $ 166,743,014 $ 13,281,547 7.97% Total Expenses $ 167,733,430 $ 151,986,919 $ 15,746,511 10.36% Change in Net Position $ 12,291,131 $ 14,756,095 $ (2,464,964) -16.70% 6 $86M
Total Liquidity
FY 2022-23 YTD
$M $20M $40M $60M $80M
$14M
Outstanding
Debt
FY 2022-23 YTD
$M $20M $40M $60M
$12M
Reserve
Contribution
FY 2022-23 YTD
$M $50M $100M
29%
Percent Reserve
Goal Met
FY 2022-23
Item 1: Treasurer’s Report CONTRIBUTION RESERVES GOAL DEBT Reserve contribution
for the fiscal year
Outstanding loans
FY23 YTD
LOC
City loans
Total available liquidity
FY23 YTD
Unrestricted Cash LOC
$171M Reserve
Target FY23
$107M - FY23 Goal
$12M - Actual
$15M - Budget $14M
$86M
Reserves
29%
Lines of
Credit
21%
Unmet
Reserves
50%
7 Item 1
Recommendation: Receive and File Treasurer’s
Report for Period Ending 8/31/22
Presenter:
Dr. Eric Washington,
Chief Financial Officer
8 Item 2
Preliminary FYE 2022 Auditor’s Report
Presentation by Pisenti & Brinker
Recommendation: Receive and File Preliminary
FYE 2022 Auditor’s Report from Pisenti &
Brinker
Presenter:
Dr. Eric Washington,
Chief Financial Officer
San Diego Community Power
Report to the Finance and Risk Committee
October 20, 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 2022 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 and securities
• 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 • Supplier Security Deposits
• Reviewed contracts and determined completeness of amounts recorded • Debt
• Confirmations sent to lender
• Financial Statement Note Disclosures – Complete and without bias Required Board Communications
• The significant accounting policies
adopted by SDCP 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?
19 Item 2
Recommendation: Receive and File Preliminary
FYE 2022 Auditor’s Report from Pisenti &
Brinker
Presenter:
Dr. Eric Washington,
Chief Financial Officer
Thank You
Next Regular
Finance & Risk
Management Committee
Meeting
November 3, 2022