CITY OF SAN LEANDRO, CALIFORNIA
MEASURE BB PROGRAM
FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2021
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CITY OF SAN LEANDRO
MEASURE BB PROGRAM
Financial Statements
For the Year Ended June 30, 2021
Table of Contents
Page
Independent Auditor’s Report ............................................................................................................. 1 Financial Statements:
Balance Sheets…………………. .................................................................................................... 3
Statement of Revenues, Expenditures and Changes in Fund Balances .......................................... 4 Notes to the Financial Statements .................................................................................................... 5 Independent Auditor’s Report on Measure BB Compliance ........................................................... 7
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INDEPENDENT AUDITOR’S REPORT
The Honorable Mayor and Members of the City Council
City of San Leandro, California
Report on Financial Statements
We have audited the accompanying financial statements of the Alameda County Transportation Commission - Measure BB Program (Program) of the City of San Leandro, California (City), as of and for the year ended June 30, 2021 and the related notes to the financial statements, which collectively comprise the 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 BB Program’s preparation and fair presentation 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 BB 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 opinion.
1 Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure BB Program as of June 30, 2021, and the changes 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 1, the financial statements present only the Measure BB 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 22, 2021, on our consideration of the Measure BB 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 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 effectiveness of the Measure BB Program’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 BB Program’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 22, 2021
2 CITY OF SAN LEANDRO
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
BALANCE SHEETS
JUNE 30, 2021
Bike and Local Streets
Paratransit Pedestrian and Roads Totals
ASSETS
Cash and investments (Note 3) $1,144,251 $10,564 $2,096,643 $3,251,458 Direct local distribution program receivable - Measure BB 63,307 52,073 311,873 427,253 Interest Receivable 1,760 16 3,225 5,001
Total Assets $1,209,318 $62,653 $2,411,741 $3,683,712
LIABILITIES
Accounts payable $35,841 $196,331 $232,172
Total Liabilities 35,841 196,331 232,172
FUND BALANCES
Restricted for Measure BB Programs 1,173,477 $62,653 2,215,410 3,451,540 Total Liabilities and Fund Balances $1,209,318 $62,653 $2,411,741 $3,683,712 See accompanying notes to financial statements
3 CITY OF SAN LEANDRO
ALAMEDA COUNTY TRANSPORTATION COMMISSION
MEASURE BB PROGRAM
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE FISCAL YEAR ENDED JUNE 30, 2021
Paratransit
Bike and
Pedestrian
Local Streets
and Roads Totals
REVENUES
Measure BB direct local distribution funds allocation $311,411 $256,147 $1,534,109 $2,101,667 Interest income 5,356 4,406 26,386 36,148
Total Revenues 316,767 260,553 1,560,495 2,137,815
EXPENDITURES
Street Overlay/Rehabilitation 2019-20 269,157 269,157
Annual Sidewalk Program 2012-13 62,166 62,166
Bicycle Network West 68,852 68,852
Sidewalk Program 2018-19 84,276 84,276
Sidewalk Program 2019-20 118,617 49,734 168,351
Street Sealing 2018-19 25,124 25,124
Washington Avenue Reconstruction 70,950 70,950
Measure B GAP 214,868 214,868
Total Expenditures 214,868 333,911 414,965 963,744
NET CHANGE IN FUND BALANCE 101,899 (73,358) 1,145,530 1,174,071
FUND BALANCES
Beginning Fund Balance 1,071,578 136,011 1,069,880 2,277,469 Ending Fund Balance $1,173,477 $62,653 $2,215,410 $3,451,540 See accompanying notes to financial statements
4 CITY OF SAN LEANDRO
MEASURE BB PROGRAM
Notes to the Financial Statements
For the Year Ended June 30, 2021
NOTE 1 – DESCRIPTION OF REPORTING ENTITY
Reporting Entity – All transactions of the Alameda County Transportation Commission – Measure BB Funds (Measure BB Program) of the City of San Leandro, California (City), are included as separate special revenue fund and capital project funds in the basic financial statements of the City. Measure BB Program is used to account for the City’s share of revenues earned and expenditures incurred under the City paratransit, streets and roads, and bike and pedestrian programs.
The accompanying financial statements are for the Measure BB 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.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
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 current liabilities 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.
The following fund is used:
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 (specifically, the paratransit program). Capital project funds are utilized to account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds.
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.
5 CITY OF SAN LEANDRO
MEASURE BB PROGRAM
Notes to the Financial Statements
For the Year Ended June 30, 2021
NOTE 3- CASH AND INVESTMENTS
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. The CAFR may be obtained from the City of San Leandro, 835 East 14th Street, San Leandro, California 94577- 3767.
NOTE 4- MEASURE BB PROGRAM
Under Measure BB, approved by the voters of Alameda County in 2014, the City receives a portion of the proceeds of one-half percent sales tax for 2021 to be used for transportation-related expenditures. This will increase to one cent after March 2022. These measures were adopted with the intention that the funds generated by the additional sales tax will not fund expenditures previously paid by property taxes but, rather, would be used for additional projects and programs.
Projects funded by Measure BB were as follows: Paratransit Program – To provide transit services for the elderly and the handicapped, Streets and Roads Program; and Bike and Pedestrian Program.
6 INDEPENDENT AUDITOR'S REPORT ON MEASURE BB COMPLIANCE To the Honorable Mayor and Members of the City Council
City of San Leandro, California
Report on Compliance for Measure BB 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 - Measure BB Program of the City of San Leandro, 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 22, 2021.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the Measure BB 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 BB 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 BB Program. However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Measure BB Program
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 the Measure BB Program for the year ended June 30, 2021.
7 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 the Measure BB Program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Measure BB 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 BB 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 BB 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 the Measure BB 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 22, 2021 which is an integral part of our audits and should be read in conjunction with this report.
Purpose of 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 22, 2021
8