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, wh ether due to fraud or error, and to issue an auditor’s report that includes our opinions. 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 GAAS 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 involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, indi vidually 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 GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audi t procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumst ances, but not for the purpose of expressing an opinion on the effectiveness of the TDA Program’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting poli cies used and the reasonableness of significant accounting estimates made by management, as we ll as evaluate the overall presentation of the financial statements.
We are required to communicate with those charge d with governance regarding, among other matters, the planned scope and timing of the audit, signif icant audit findings, and certain internal control– related matters that we identified during the audit.
Emphasis of Matter
As discussed in Note 1, the financial statements pr esent only the TDA Program and do not purport to, and do not, present fairly the financial position of th e City, as of June 30, 2025, and the changes in its financial position or, where applicable, its cash flow s for the year 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 19, 2025 on our consideration of the TDA Program’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and 2 385 of 396
To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California
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 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 TDA Program’s internal control over financial reporting and compliance.
Badawi & Associates, CPAs
Emeryville, California
December 19, 2025
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City of San Bruno
Transportation Development Act Program
Balance Sheet
June 30, 2025
2025
ASSETS
Intergovernmental receivables 47,114$
Total assets 47,114$
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCES
Liabilities:
Due to City 47,114$
Total liabilities 47,114
Deferred inflows of resources:
Unavailable revenues 47,114
Total Deferred inflows of resources 47,114
Fund Balances:
Unassigned (47,114)
Total liabilities, deferred inflows of
resources, and fund balances 47,114$
See accompanying Notes to Financial Statements.
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City of San Bruno
Transportation Development Act Program
Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2025
2025
Revenues:
TDA Revenues -$
Total Revenues -
Expenditures:
Safe Routes to School High Priority Improvements 47,114 Total Expenditures 47,114
Net change in fund balances (47,114)
Fund Balances:
Beginning of year -
End of year (47,114)$
See accompanying Notes to Financial Statements.
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City of San Bruno Transportation Development Act Program Notes to Financial Statements
For the year ended June 30, 2025
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of San Bruno (City) received funds under the Transportation Development Act (TDA), Article
3.0 which provides funding for the Safe Routes to School – High Priority Improvements project. The project was funded by the Metropolitan Transport ation Commission (MTC). The financial statements are intended to present the TDA Program, and not the financial position and the changes in fund balances of the City as a whole.
B. Basis of Accounting and Measurement Focus
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 app lied 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 current liabilitie s generally are included on the balance sheet.
Operating statements of governmental funds presen t increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
C. Fund Accounting
The operations of the TDA Program are accounted for within a capital project fund by using separate project codes.
D. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.
E. Receivables
During the course of normal operations, the fund carries various receivable ba lances for unreimbursed eligible TDA expenditures.
F. Program balance
The TDA fund balance is restricted by third parties to be used in accordance with the Transportation Development Act (TDA). The program had a fund balance of ($47,114) as of June 30, 2025.
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City of San Bruno Transportation Development Act Program Notes to Financial Statements
For the year ended June 30, 2025
2. TDA ARTICLE 3.0 REVENUES
During the fiscal year ended June 30, 2025, the City expended amounts against authorized TDA allocation instructions from the Metropolitan Transportation Commission for the following projects:
Project Name Grant
SAFE ROUTES TO SCHOOL HIGH PRIORITY IMPROVEMENTS 25001038 380,700$ 47,114$ Allocation
Instruction # Expenditures
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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 San Bruno
San Bruno, California
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 governmental activities, the business-type activities, each major fund, and th e aggregate remaining fund information of the Transportation Development Act Program (TDA Program) of the City of San Bruno, California (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the TDA Program’s basic financial statements, and have issued our report thereon dated December 19, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial st atements, 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 purpose 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 allow 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 there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or dete cted 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 limit ed purpose described in the first paragraph of this section and was not designed to identify all deficiencies 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 consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
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To the Honorable Mayor and Members of the City Council
of the City of San Bruno
San Bruno, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Program’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 with wh ich could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, 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 our 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.
Badawi & Associates, CPAs
Emeryville, California
December 19, 2025
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REPORT ON COMPLIANCE AND ON INTERNAL CONTROL
OVER COMPLIANCE FOR TRANSPORTATION DEVELOPMENT ACT FUNDS Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Bruno
San Bruno, California
Report on Compliance
Opinion
We have audited the City of San Bruno’s (City) co mpliance with the types of compliance requirements described in Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission applicable to the City’s Transportation Development Act Article 3 (TDA Program) for the year ended June 30, 2025.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effe ct on its TDA Program for the year ended June 30, 2025.
Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards ge nerally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and Section 6666 of the Act; and the allocation instructions and resolutions of the Metropolitan Transportation Commission. Our responsibilities under those standards and the Act 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 other ethi cal responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s TDA Program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s TDA Program.
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To the Honorable Mayor and Members of City Council
of the City of San Bruno
San Bruno, California
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assuranc e 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 GAAS, Government Auditing Standards, and Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportat ion 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 fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of inter nal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the TDA Program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission , we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material nonc ompliance, 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 regard ing the City’s compliance with the compliance requirements referred to above and performing such other procedures 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 Section 6666 of the Act and the allocation instructions and resolutions of th e Metropolitan Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charge d with governance regarding, among other matters, the planned scope and timing of the audit and any si gnificant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
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To the Honorable Mayor and Members of City Council
of the City of San Bruno
San Bruno, California
Report on Internal Control Over Compliance
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 complianc e that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control ov er compliance that we consider to be material weaknesses, as defined below. However, material we aknesses or significant de ficiencies in internal control over compliance may exist that were not identified.
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 Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission 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 t hat material noncompliance with a type of compliance requirement of Section 6666 of the Act and the allocation inst ructions and resolutions of the Metropolitan Transportation Commission 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 Section 6666 of the Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission that is less severe than a material weakness in internal cont rol over compliance, yet important enough to merit attention by those charged with governance.
Our audit was not designed for the purpose of expre ssing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
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 re sults of that testing based on the requirements of Section 6666 of the Act, and the allocation inst ructions and resolutions of the Metropolitan Transportation Commission. Accordingly, this report is not suitable for any other purpose.
Badawi & Associates, CPAs
Emeryvil
le, California
December 19, 2025
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