THIS STAFF REPORT COVERS CALENDAR ITEM NO.: 8 FOR THE MEETING OF: - PDF document

THIS STAFF REPORT COVERS CALENDAR ITEM NO.: 8 FOR THE MEETING OF: January 13, 2011 TRANSBAY JOINT POWERS AUTHORITY BRIEF DESCRIPTION: Presentation of the audited Financial Statements of the Transbay Joint Powers Authority (TJPA) for the fiscal year ended June 30, 2010 and the Report to the Board of Directors. SUMMARY: Macias Gini & O’Connell LLP (MGO) conducted an audit of the TJPA’s financial statements for fiscal year ended June 30, 2010. These financial statements are the seventh audited financial statements of the TPJA and fairly represent the financial position of the TJPA for the period of July 1, 2009 to June 30, 2010. The consolidation of the financial information was made possible by a collaborative effort between the staff and consultants of the TJPA. The financial statements include the following sections: 1) Independent Auditor’s Report—this report was prepared by the independent auditors, who rendered an unqualified opinion, which is the most favorable opinion an agency can receive in an audit. An unqualified opinion means that the financial statements are presented fairly and in accordance with accounting principles generally accepted in the United States of America. 2) Management’s Discussion and Analysis—this section provides management’s overview of TJPA’s financial activities. 3) Basic Financial Statements—the basic financial statements include a statement of net assets, statement of revenues and changes in fund net assets, statement of cash flows, and notes to the statements, which are essential to a full understanding of the data provided. 4) Supplementary and Other Information—this includes the Schedule of Federal Awards, and the Reports on Compliance and on Internal Control, which is required under Government Auditing Standards. In addition, MGO issued a report addressed to the Board of Directors which is intended solely for the information of TJPA’s Board of Directors and management.

THIS STAFF REPORT COVERS CALENDAR ITEM NO.: 8 FOR THE MEETING OF: January 13, 2011 TRANSBAY JOINT POWERS AUTHORITY BRIEF DESCRIPTION: Presentation of the audited Financial Statements of the Transbay Joint Powers Authority (TJPA) for the fiscal year ended June 30, 2010 and the Report to the Board of Directors. SUMMARY: Macias Gini & O’Connell LLP (MGO) conducted an audit of the TJPA’s financial statements for fiscal year ended June 30, 2010. These financial statements are the seventh audited financial statements of the TPJA and fairly represent the financial position of the TJPA for the period of July 1, 2009 to June 30, 2010. The consolidation of the financial information was made possible by a collaborative effort between the staff and consultants of the TJPA. The financial statements include the following sections: 1) Independent Auditor’s Report—this report was prepared by the independent auditors, who rendered an unqualified opinion, which is the most favorable opinion an agency can receive in an audit. An unqualified opinion means that the financial statements are presented fairly and in accordance with accounting principles generally accepted in the United States of America. 2) Management’s Discussion and Analysis—this section provides management’s overview of TJPA’s financial activities. 3) Basic Financial Statements—the basic financial statements include a statement of net assets, statement of revenues and changes in fund net assets, statement of cash flows, and notes to the statements, which are essential to a full understanding of the data provided. 4) Supplementary and Other Information—this includes the Schedule of Federal Awards, and the Reports on Compliance and on Internal Control, which is required under Government Auditing Standards. In addition, MGO issued a report addressed to the Board of Directors which is intended solely for the information of TJPA’s Board of Directors and management.

TRANSBAY JOINT POWERS AUTHORITY Independent Auditor’s Reports, Management’s Discussion and Analysis, Basic Financial Statements and Other Supplementary Information For the Year Ended June 30, 2010

TRANSBAY JOINT POWERS AUTHORITY For the Year Ended June 30, 2010 Table of Contents Page(s) Independent Auditor's Report ................................................................................................................ 1-2 Management’s Discussion and Analysis (Required Supplementary Information - Unaudited) ....... 3-6 Basic Financial Statements: Statement of Net Assets ........................................................................................................................ 7-8 Statement of Revenues, Expenses and Changes in Fund Net Assets ....................................................... 9 Statement of Cash Flows ....................................................................................................................... 10 Notes to the Basic Financial Statements ........................................................................................... 11-22 Supplementary Information: Schedule of Expenditures of Federal Awards ........................................................................................ 23 Notes to Schedule of Expenditures of Federal Awards ......................................................................... 24 Other Reports: 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 ....................................................................... 25-26 Independent Auditor’s Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance In Accordance With OMB Circular A-133 ............................ 27-28 Schedule of Findings and Questioned Costs ......................................................................................... 29

Board of Directors Transbay Joint Powers Authority San Francisco, California Independent Auditor’s Report We have audited the accompanying basic financial statements of the Transbay Joint Powers Authority (TJPA), as of and for the year ended June 30, 2010, as listed in the table of contents. These financial statements are the responsibility of the TJPA’s management. Our responsibility is to express an opinion 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 of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the TJPA’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the TJPA as of June 30, 2010, and the changes in its financial position and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards , we have also issued our report dated November 29, 2010, on our consideration of the TJPA’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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management’s discussion and analysis, as listed in the table of contents, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. 1