Silicon Valley Clean Energy Authority
Pre-Audit Audit Committee
Meeting
September 30, 2022
Item 2
PRESENTATION
p Is ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Introduction
• Kellin Gilbert, CPA
• Audit Partner
• 15 years in public accounting and performing audits of government entities
• Jenna Blanchard
• Engagement Supervisor
• 7 years in public accounting
Item 2
PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Timeline for audit of the years ended
September 30, 2022 and 2021
• We expect to start the audit in mid November
• Initial fieldwork and testing to last around 3-4 weeks • Financial statement drafts to be available in early January* • Issuance of financial statements by January 31, 2023* • Would like to coordinate timing so that the Audit Committee can review the draft and meet with us prior to issuance
• Will meet with the Audit Committee Chair to facilitate questions as requested
• *Pending approval of Management and Mike Maher and the commitment to provide requested documentation timely
Item 2
PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Audit of the years ended
September 30, 2022 and 2021
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
Item 2
PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Communication to those charged
with Governance
SAS 114 Pre Audit Communication
• Letter communicating planned timing, significant risks identified and our planned audit response, and other general audit requirements • Will be sent directly to Audit Committee
• Anticipated to be sent in early October
Item 2
PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Risk Assessment for the years ended
September 30, 2022 and 2021
Our audit is a risk-based audit. Planned risk assessment procedures include:
• Refresh our understanding of the entity’s operating
characteristics, practices, and procedures
• Review procedures and controls surrounding significant transaction cycles and business processes
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PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Planned Audit Procedures
Significant areas of focus
• Review policies and procedures for various types of financial transactions • Revenue recognition
• Accounts receivable and 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 the method for determining (accrued revenue)
Item 2
PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Audit Procedures
Significant areas of focus
• Cash
• Confirmations sent to financial institutions
• Accrued Cost of Electricity
• Review subsequent bills from electricity providers and cash payments • Other Liabilities
• Reviewed contracts and other support to determine completeness of amounts recorded
• Financial Statement Note Disclosures – Complete and without bias Item 2
PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Single Audit and Additional Procedures
SVCEA is required to have a Single Audit in FY 22 due to expending over $750k of federal funds.
• 21.027 Coronavirus State and Local Fiscal Recovery Funds • This grant is for the public health emergency, COVID-19 or its negative economic impacts, including providing assistance to impacted industries and to provide government services, to the extent of the reduction of revenue due to COVID-19… • Schedule of Federal Expenditures (SEFA) will now be included in the financial statements
• Additional testing of controls and of compliance requirements in accordance with the Uniform Guidance (UG)
Item 2
PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
New Accounting Pronouncement
GASB 87 - Leases
• This standard requires entities that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases
• Effective for FY 2022 financial statements
Item 2
PRESENTATION
An independently owned member
RSM US Alliance
■ 1111
RS~A • •
p I s ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors
Kellin Gilbert: 707-577-1511
[email protected]
Jenna Blanchard: 707-577-1596
Questions?
Item 2
PRESENTATION
p Is ENT I & BR I N I( ER LLP
Certified Public Accountants & Advisors