CITY OF EMERYVILLE, CALIFORNIA
ALAMEDA COUNTY
VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
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CITY OF EMERYVILLE
ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM
FINANCIAL STATEMENTS
For The Year Ended June 30, 2021
Table of Contents
Page
Independent Auditor’s Report .................................................................................................................... 1 Financial Statements:
Balance Sheet ........................................................................................................................ 3 Statement of Revenues, Expenditures and Changes in Fund Balance .................................. 4 Notes to the Financial Statements ........................................................................................... 5 Independent Auditor’s Report on Vehicle Registration Fee (VRF) Measure F Program Compliance .............................................................................................................. 9 This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council,
of the City of Emeryville, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Alameda County Transportation Commission Vehicle Registration Fee (VRF) Measure F Program (Measure F Program) of the City of Emeryville, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements which collectively comprise the Measure F Program’s basic financial statements as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Measure F Program’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Measure F Program’s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
1 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure F Program as of June 30, 2021, and the change in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 2, the financial statements present only the Measure F Program and do not purport to, and do not present fairly the financial position of the City as of June 30, 2021, the changes in the financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 17, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Measure F Program’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 17, 2021
2 2
CITY OF EMERYVILLE
ALAMEDA COUNTY VEHICLE REGISTRATION FEE PROGRAM - BALANCE SHEET JUNE 30, 2021
Local
Streets and
Roads
ASSETS
Cash and investments $53,108
Direct local distribution program receivable - Measure F 8,402 Interest receivable 17
Total Assets $61,527
FUND BALANCE
Restricted for vehicle registration fee program and projects $61,527 Total Fund Balance 61,527
Total Fund Balance $61,527
See accompanying notes to financial statements
3 CITY OF EMERYVILLE
ALAMEDA COUNTY VEHICLE REGISTRATION FEE PROGRAM - STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2021
Local
Streets and
Roads
REVENUES
Measure F direct local distribution funds allocation $49,279 Interest income 207
Total Revenues 49,486
EXPENDITURES
Public works and transportation 2,805
Capital outlay 8,471
Total Expenditures 11,276
Net Change in Fund Balance 38,210
Beginning Fund Balance 23,317
Ending Fund Balance $61,527
See accompanying notes to financial statements
4 CITY OF EMERYVILLE, CALIFORNIA
ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements
For The Year Ended June 30, 2021
NOTE 1 – BACKGROUND
Measure F Program - Alameda County Vehicle Registration Fee Measure F Program (Measure F Program) was approved by the voters in November 2010, with 63 percent of the vote. The fee will generate about $10.7 million per year by a $10 per year vehicle registration fee. The collection of the $10 per year vehicle registration fee started in the first week of May 2011. The goal of the VRF Program is to sustain the County’s transportation network and reduce traffic congestion and vehicle related pollution. The program includes four categories of projects:
Local Road Improvement and Repair Program (60 percent) Transit for Congestion Relief (25 percent)
Local Transportation Technology (10 percent)
Pedestrian and Bicyclist Access and Safety Program (5 percent) The Alameda County Transportation Commission administers the program and distributes an equitable share of the funds among the four planning areas of the county over successive five year cycles. Geographic equity will be measured by a formula, weighted 50 percent by population of the planning area and 50 percent of registered vehicles of the planning area.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
Reporting Entity – All transactions of the Measure F Program of the City of Emeryville, California (City), are included in a special revenue fund in the basic financial statements of the City.
The accompanying financial statements include the Measure F Program only and are not intended to fairly present the financial position, results of operations and cash flows of the City in conformity with accounting principles generally accepted in the United States of America.
Basis of Accounting – The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a “current financial resources” measurement focus, wherein only current assets, and deferred outflows of resources, and current liabilities, and deferred inflows of resources, generally are included on the balance sheets. Operating statements of governmental funds presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Description of Funds – The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self-balancing set of accounts.
Special Revenue Fund – to account for the proceeds of specific revenues (other than for capital projects) that are legally restricted to be expended for specified purposes. 5 CITY OF EMERYVILLE, CALIFORNIA
ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements
For The Year Ended June 30, 2021
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
Cash and Investments – The Fund’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition.
Fund Balance – Measure F fund balance is restricted. A restricted fund balance represents amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally impose by creditors, grantors, contributors, or the laws or regulations of other governments.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first.
Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
Use of Estimates – Management uses estimates and assumptions in preparing the financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.
6 CITY OF EMERYVILLE, CALIFORNIA
ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements
For The Year Ended June 30, 2021
NOTE 3 – CASH AND INVESTMENTS
The investment fair value measurements within the fair value hierarchy are established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. government securities, bankers’ acceptances, commercial paper, medium term notes, repurchase agreements, deposits with banks, and participation in the California Local Agency Investment Fund. All investments are stated at fair value. Pooled investment earnings are allocated monthly based on the average monthly cash and investment balances of the various funds and related entities of the City.
See the City’s Comprehensive Annual Financial Report (CAFR) for disclosures related to cash and investments as prescribed by Governmental Accounting Standards Board Statement No. 40. The CAFR may be obtained from the City of Emeryville, 1333 Park Ave, Emeryville, CA 94608.
NOTE 4 – COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs may be subject to further examination by the grantors and the amount of expenditures, if any, which may be disallowed by the granting agencies, and cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
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INDEPENDENT AUDITOR’S
REPORT ON VEHICLE REGISTRATION FEE (VRF)
MEASURE F PROGRAM COMPLIANCE
To the Honorable Members of the City Council
Emeryville, California
Report on Compliance for Measure F Program
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Alameda County Transportation Commission Vehicle Registration Fee Program (Measure F Program) of the City of Emeryville, California, (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements and have issued our report thereon dated December 17, 2021.
Management’s Responsibility
Management is responsibility for compliance with the requirements of laws, regulations, contracts, and grants specified in the Master Programs Funding Agreement, between the City and Alameda County Transportation Commission.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the Measure F Program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Those standards and requirements require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the Measure F Program. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the Measure F Program. However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Measure F Programs
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on Measure F Program for the year ended June 30, 2021.
9 Report on Internal Control Over Compliance
Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on Measure F Program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Measure F Program and to test and report on internal control over compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of Measure F Program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of Measure F Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of Measure F Program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
We have also issued a separate Memorandum on Internal Control dated December 17, 2021 which is an integral part of our audits and should be read in conjunction with this report.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose.
Pleasant Hill, California
December 17, 2021
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