CITY OF OAKLAND
ALAMEDA COUNTY TRANSPORTATION
COMMISSION
MEASURE BB FUNDS
FINANCIAL STATEMENTS
JUNE 30, 2024
CITY OF OAKLAND
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB FUNDS
FINANCIAL STATEMENTS
JUNE 30, 2024
TABLE OF CONTENTS
Page No.
Independent Auditor’s Report…………………………………………………... 1
Financial Statements
- Balance Sheet…………………………………………………………..... 4
- Statements of Revenues, Expenditures and Chan
ges in Fund Balance… 5
- Notes to Financial Statements………………………………………….... 6
Independent Auditor’s Report On Internal Control
Over Financial Reporting And On Compliance And
Other Matters Based On An Audit Of Financial
Statements Performed In Accordance With
Government Auditing Standards………………………………………………….. 9
Independent Auditor’s Report On Compliance With Measure BB Requ irements ….
11 _____________________________________________________________________________________________ 333 Hegenberger Road, Suite 325, Oakland, California 94621 T: 510 832 0257| F:510 272 9757 www.grantandsmithcpa.com
1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the
City Council of the City of Oakland
Oakland, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying f inancial statements of the Al ameda County Transportation Commission (Alameda CTC) - Measure BB Funds of the City of Oakl and, California (the City)
as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above pres ent fairly, in all material respects, the respective financial position of the City, as of June 30, 2 024, and the respective changes in financial position for the year then ended in accordance with a ccounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards ge nerally 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.
Our responsibilities
under those standards are furthe r described in the Auditor’s Re sponsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtain ed is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from ma terial misstatement, whether due to fraud or error.
In preparing the financial statements, management is required t o evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 INDEPENDENT AUDITOR’S REPORT(CONTINUED)
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high leve l of assurance but is not absolute assurance and therefore is not a guarantee that an audit conduc ted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may invol ve collusion, forg ery, intentional omissions, misrepresentations, or the override of internal cont rol. Misstatements are considered material if there is a substan tial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the f inancial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examini ng, on a test basis, evidence re garding the amounts and disclosures in the financial statements.
Obtain an understanding of inter nal control relevant to the audit 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 City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and th e reasonableness of significant accounting estimates m ade by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or even ts, considered in the aggregate, that raise substantial doubt about the City’s abilit y to continue as a going concern for a reasonable period of time.
We are required to communicate w ith those charged with governan ce regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
3 INDEPENDENT AUDITOR’S REPORT(CONTINUED)
Emphasis of Matter
As discussed in Note 1, the financial statements of the Alameda CTC – Measure BB Funds of the City present only the Measure BB Funds and are not intended to present fairly the financial position of the City and the results of it s operations in conformity wit h generally accounting principles accepted in the United States of America.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated December 23, 2024, 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 solely 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 City’s internal control over financial reporting and compliance.
Oakland, California
December 23, 2024
CITY OF OAKLAND
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB FUNDS
BALANCE SHEET
AS OF JUNE 30, 2024
Streets Bike
& &
Roads Pedestrians Paratransit Total
ASSETS:
Cash & Investments 39,672,002 $ 5,327,026 $ 4,450,674 $ 49,449,702 $ Receivables:
Measure BB Allocation 4,674,058 472,182 499,881 5,646,121 Interest 438,294 60,360 48,504 547,158 Prepaid Expenditures -
TOTAL ASSETS 44,784,354$ 5,859,568$ 4,999,059$ 55,642,981$
LIABILITIES & FUND BALANCE
LIABILITIES:
Accounts Payable 1,106,898$ 53,277$ 391,951$ 1,552,126$ TOTAL LIABILITIES 1,106,898 53,277 391,951 1,552,126 FUND BALANCE:
Restricted for Measure BB Qualified Projects & Programs 43,677,456 5,806,291 4,607,108 54,090,855 TOTAL LIABILITIES & FUND BALANCE 44,784,354$ 5,859,568$ 4,999,059$ 55,642,981$ See accompanying notes.
4 CITY OF OAKLAND
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2024
Streets Bike
& &
Roads Pedestrians Paratransit Total
REVENUES:
Measure BB Allocation 27,699,310$ 2,798,236$ 2,962,386$ 33,459,932$ Interest on Investments 1,749,223 228,559 183,058 2,160,840 Unrealized Gain/(Loss) in Market 319,324 43,842 35,076 398,242
TOTAL REVENUES 29,767,857 3,070,637 3,180,520 36,019,014 EXPENDITURES:
Transportation & Operation 2,322,213 2,322,213
Planning, Engineering & Construction 27,962,834 2,695,497 30,658,331 TOTAL EXPENDITURES 27,962,834 2,695,497 2,322,213 32,980,544 REVENUES OVER (UNDER) EXPENDITURES 1,805,023 375,140 858,307 3,038,470 BEGINNING FUND BALANCE 41,872,433 5,431,151 3,748,801 51,052,385 ENDING FUND BALANCE 43,677,456$ 5,806,291$ 4,607,108$ 54,090,855$ See accompanying notes.
5 CITY OF OAKLAND
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
6 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General
Reporting Entity - Measure BB, approved by the voters of Alameda County on Novembe r 04, 2014, authorized Alameda County Transportation Commission (Alam eda CTC) to administer the proceeds from the extension one-half cent sales and use tax scheduled to terminate on March 31, 2022, and the augmentation of the tax by one-half of one pe rcent. The duration of the tax will be 30 years from initial year of collection, which begins April 01, 2015, with said to terminate/expire on March 31, 2045.Transactions of the Alameda CTC Measure BB Funds of the City of Oakland are included, as separate funds, in the basic financial statem ents of the City of Oakland uses Measure BB Funds to account for expenditures in curred in The City’s Local Streets and Roads, Bike and Pedestrian Ways and Paratransit programs.
Local Streets and Roads – To maintain the City’s local streets and roads. These funds hel p the City repave streets, fill pot holes, install traffic signals an d street signs, speed bumps, as well as repair sidewalks and address traffic safety issues.
Bike and Pedestrian Safety – The funds are used for planning, construction and maintenance o f bicycle and pedestrian projects and programs, with focus on hig h-priority projects in Oakland’s Bicycle Master Plan and Pedestrian Master Plan.
Paratransit – To provide transit services for the elderly and people with disabilities.
Measure BB Funds are accounted for in special revenue funds of the City of Oakland’s (the City) financial accounting record s. The financial statements of the Measure BB Funds present only the financial activities of the Measure BB Funds and are n ot intended to fairly present the financial position and changes in financial position of the Cit y in conformity with accounting principles generally accepted in the United States of America.
Measurement Focus and Basis of Accounting
The accompanying financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are co nsidered available when they are collected within the current period or soon enough thereaft er to pay liabilities of the current period. For this purpose, the City considers revenues to be ava ilable if they are collected within 120 days after the end of the cu rrent fiscal year. Expenditures are recorded when the liability is incurred and is expected to be liquidated with expendable available resources.
CITY OF OAKLAND
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
7 Cash and Investments
Cash and investments for Measure BB Funds are maintained in the City’s cash and investment pool. Funds are invested according to the investment policy ado pted by the City Council.
Investments are generally carried at fair value.
Information regarding the characteristics of the entire investment pool can be found in the City’s June 30, 2024 Annual Comprehensive Financial Report (ACFR) unde r the basic financial statements. Income earned or losses arising from the investment of pooled cash are allocated on a monthly basis to the participating funds based on their proportionate share of the average daily cash balance.
Fund Balances
Reservations of fund balances ind icate those portions of fund e quity that are not available for appropriation for expenditure or which have been legally restri cted to specific use.
Encumbrances outstanding at fiscal year end are reported as res ervation of fund balances and the related appropriation is autom atically carried forward into t h e n e x t f i s c a l y e a r .
Encumbrances do not constitute expenditures or liabilities beca use the commitments will be honored during the subsequent fiscal year.
Estimates
The preparation of financial statements in conformity with acco unting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain r eported balances. Accordingly, actual results could differ from those estimates.
NOTE 2 – SELF INSURANCE
The City of Oakland is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets, errors and omissions; injuries to employees; and natural disasters. The City is self-insured for its general liability, worker’s compensatio n, malpractice liability, general and auto liability and has excess reinsurance with the California State Association of Counties.
NOTE 3 – COMMITMENTS AND CONTINGENCIES
As of June 30, 2024, $1,084,828 of Measure BB Streets and Roads Funds, $522,310 of Measure BB Bike and Pedestrian Funds, and $294,855 of Measure BB Paratr ansit Funds were committed to cover anticipated costs of completing various projects and programs.
CITY OF OAKLAND
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB FUNDS
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
8 NOTE 3 – COMMITMENTS AND CONTINGENCIES (Continued)
Of the balance of $21,290,682 the City has appropriated $3,775, 745 for various capital improvements projects. These amounts may or may not result in actual expenditures.
NOTE 4 – MEASURE BB FUNDS IN THE CITY’S BASIC FINANCIAL STATEMENTS
Measure BB Funds are grouped with other funds under “Traffic Sa fety and Control” as a part of Non-Major Governmental Funds (Special Revenue Funds) in the Cit y’s June 30, 2024, Annual Comprehensive Financial Report (A CFR) under the basic financial statements. That report may be obtained by writing to the Financial Management Agency, Acco unting Division City of Oakland, 150 Frank H. Ogawa Plaza, Suite 6353, Oakland, California 94612-2093.
See the City’s Annual Comprehens ive Financial Report (ACFR) for disclosures related to cash and investments as prescribed by Governmental Accounting Standa rds Board. The ACFR may be obtained from the City’s finance department.
_____________________________________________________________________________________________ 333 Hegenberger Road, Suite 325, Oakland, California 94621 T: 510 832 0257| F:510 272 9757 www.grantandsmithcpa.com
9 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the
City Council of the City of Oakland
Oakland, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards appl icable to financial audits con tained in Government Auditing Standards issued by the Comptroller General of the United States, the fi nancial statements of the Alameda County Transportation Commission (Alameda CTC) - Measure BB Funds of the City of Oakland, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated December 23, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the pur pose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that the re is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not desig ned to identify all deficienci es in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consi der to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that were not identified.
10 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
(Continued)
Report on Compliance and Other Matters
As part of obtaining reasonable a ssurance about whether the Cit y’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance wit h which could have a direct and material effect on the financial statements. However, providing an opinion on co mpliance with those provisions was not an objective of our audit, and accordi ngly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Oakland, California
December 23, 2024
_____________________________________________________________________________________________ 333 Hegenberger Road, Suite 325, Oakland, California 94621 T: 510 832 0257| F:510 272 9757 www.grantandsmithcpa.com
11 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH
MEASURE BB REQUIREMENTS
To the Honorable Mayor and Members of the
City Council of the City of Oakland
Oakland, California
Report on Compliance for Measure BB Funds
Opinion on Measure BB Funds
We have audited Alameda County Transportation Commission (Alameda CTC) - Measure BB Funds of the City of Oakland, California (the City)’s complianc e with the types of compliance requirements
identified in the agreement between the City and Alameda Count y Transportation Commission Applicable to Measure BB Funds, that could have a direct on the City’s Measure BB Funds, for the year ended June 30, 2024
In our opinion, the City complied, in all material respects, wi th the types of compliance requirements referred to above that could have a direct and material effect on Measure BB Funds for the year ended June 30, 2024.
Basis for Opinion on Measure BB Funds
We conducted our audit of compliance in accordance with auditin g standards generally accepted in the United States of America; the standards applicable to fi nancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and t he audit requirements of Alameda County Transportation Commission applicable to Measure BB.
Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our o ther ethical responsibilities, in accordance with relevant ethical r equirements relating to our a udit. We believe that the audit evidence we have obtained is suf ficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not p rovide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for co mpliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal c ontrol over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s Measure BB programs.
12 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH
MEASURE BB REQUIREMENTS (Continued)
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Agreement between the City and Alameda County Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fra ud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements refe rred to above is considered mat erial if there is a substantial likelihood that, individually or in the aggregate, it would inf luence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in acco rdance with generally accepted au diting standards, Government Auditing Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compl iance with the compliance requirements referred to above and performing such other proced ures as we considered necessary in the circumstances.
Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with A lameda County Transportation Commission, but not for the purpose of expressin g an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate w ith those charged with governan ce regarding, among other matters, the planned scope and timing of the audit and any sign ificant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on 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, no ncompliance with a type of compliance requirement of a fede ral program on a timely basis. A material weakness in internal control over
13 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH
MEASURE BB REQUIREMENTS (Continued)
Report on Internal Control over Compliance (Continued)
compliance is a deficiency, or a 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 a federal program will not be prevented, or dete cted 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 a federal program that is less severe than a material weakness in interna l 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 Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance t hat might be material weaknesses or significant deficiencies in inte rnal control over compliance. G iven these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as define d above. However, material wea knesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on in ternal 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 of the Agreement with Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose.
Oakland, California
December 23, 2024