City of South San Francisco
Measure W Funds
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for
Local Transportation Purposes in Accordance
with the San Mateo County Congestion Relief Plan
For the Year Ended June 30, 2022
Attachment 4
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CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
For the Year Ended June 30, 2022
Table of Contents
Page
Independent Accountant’s Report on Management’s Assertion ..................................................... 1 Financial Statements:
Balance Sheet ................................................................................................................................... 2 Schedule of Revenues, Expenditures and Changes in Fund Balance .............................................. 3 Notes to Financial Statements .......................................................................................................... 5 Management’s Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for Local Transportation Purposes in
Accordance with the San Mateo County Congestion Relief Plan ................................................. 7 This Page Left Intentionally Blank
INDEPENDENT ACCOUNTANT'S REPORT
ON MANAGEMENT’S ASSERTION
Honorable Mayor and Members of City Council of the
City of South San Francisco, California
We have examined management of the City of South San Francisco’s assertion, included in accompanying Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes in Accordance with the San Mateo County Congestion Relief Plan (the Agreement) between the City of South San Francisco and the San Mateo County Transportation Authority dated October 1, 2019, that the City complied with the requirements of the Agreement during the year ended June 30, 2022. Management is responsible for that assertion. Our responsibility is to express an opinion on management’s assertion about the City’s compliance based upon our examination.
Our examination was conducted in accordance with the attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management’s assertion that the City complied with the requirements of the Agreement is fairly stated, in all material respects. An examination involves performing procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures selected depend on our judgment, including an assessment of the risks of material misstatement of management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.
In our opinion, management’s assertion that the City complied with the requirements of the Agreement for the year ended June 30, 2022 is fairly stated, in all material respects.
This report is intended solely for the information and use of management, the City Council and the San Mateo County Transportation Authority and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
December 16, 2022
1 CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
BALANCE SHEET
JUNE 30, 2022
ASSETS:
Cash and investments $1,278,810
Accounts receivable 83,097
Accrued interest receivable 2,770
TOTAL ASSETS $1,364,677
FUND BALANCE:
Restricted for Measure W capital projects and maintenance $1,364,677 TOTAL FUND BALANCE $1,364,677
See accompanying notes to the financial statements.
2 CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2022
REVENUES
Sales tax from the County of San Mateo $825,500
Interest and investment income (31,622)
Total Revenues 793,878
TRANSFERS OUT
Capital Improvements Projects:
Street Rehabilitation Program 43,462
Total Transfers Out 43,462
Net Change in Fund Balance 750,416
Fund Balance, July 1 614,261
Fund Balance, June 30 $1,364,677
See accompanying notes to the financial statements.
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CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
Notes to Financial Statements
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
At the General Election of November 6, 2018, the voters of City of San Mateo County approved Measure W, which is an ordinance providing for the San Mateo County Transportation Authority to impose a one-half of one percent sales transaction and use tax. The San Mateo County Congestion Relief Plan includes an annual allocation of 12.5% of the total revenue generated by the aforementioned tax for the Local Safety, Pothole and Congestion Relief Improvement Program Category, of which 10% is to be allocated to the cities of San Mateo County and to the County of San Mateo for transportation and public transit in accordance with the Congestion Relief Plan.
B. Basis of Accounting
The Schedule of Measure W Funds (Transportation Sales Tax), a special revenue fund of the City of South San Francisco, California, have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units. The Governmental Accounting Standards Board is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The Measure W Funds are accounted for using the modified accrual basis of accounting. Under this basis, revenues are recognized when they become both measurable and available to finance expenditures of the fiscal period. Expenditures are recognized when the liability is incurred. 5 This Page Left Intentionally Blank
December 16, 2022
San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes in accordance with the San Mateo County Congestion Relief Plan
The City of South San Francisco is responsible for complying with the Agreement for Distribution of San Mateo County Measure W Funds for Local Transportation Purposes in Accordance with the San Mateo County Congestion Relief Plan (the Agreement) between the City and the San Mateo County Transportation Authority entered into on October 1, 2019. The Agreement states that in return for receiving an annual allocation of a specified portion of the retail transactions and use tax approved by Measure W – San Mateo County Transportation Expenditure Plan (the Measure), the City agrees that funds shall not be used to replace funds previously provided for public transportation investments, and that City will limit the use of funds provided pursuant to this Agreement to invest in major arterial and local roadway improvements in key congested areas throughout the County, focusing on improving safety, reducing congestion, and supporting all modes of travel on the County’s roadway system.
With respect to compliance with the Agreement, management attests to the following for the year ended June 30, 2022:
Management is responsible for establishing and maintaining an effective internal control structure with respect to compliance with the Agreement; Management is responsible for complying with the Agreement; Management has evaluated the City’s compliance with the requirements of the Agreement; All Transactions, as summarized in the preceding Balance Sheet and Schedule of Revenues, Expenditures and Changes in Fund Balance for the Year Ended June 30, 2022, are in compliance with the Agreement.
__________________________ ________________________
City Manager Finance Director
CITY COUNCIL 2022
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)
MIKE FUTRELL, CITY MANAGER
SHARON RANALS, INTERIM CITY MANAGER
DocuSign Envelope ID: D4CDF7BE-AA7D-4A9D-8917-654A5BC189B8 Acting
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