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Report ID: 20-441   
Type: Regular - Finance & Audit
Meeting Body: Board of Directors - Regular Meeting
Meeting Date: 11/12/2020 Final action: 11/12/2020
Recommended Action: Consider receiving the Year-End Financial Statements and Independent Auditor's Report for Fiscal Year Ended June 30, 2020.
Attachments: 1. STAFF REPORT, 2. Att.1. Audited Basic Financial Statements for the Fiscal Year Ended June 30, 2020, 3. Att.2. Measure B, 4. Att.3. Measure BB, 5. Att.4. Measure J, 6. Att.5. Measure VV, 7. Att.6. Prop 111 (Gann Limit), 8. Att.7. Evaluation of Board of Director Expenses, 9. Att.8. Special Transit Service District 1/District 2, 10. Att.9. Single Audit, 11. Att.10. Prop 1B – (PTMISEA &TDA), 12. Att.11. Memorandum on Internal Control, 13. Att.12. LCTOP, 14. Master Minute Order
TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Year-End Financial Statements and Independent Auditor's Report for June 30, 2020

BRIEFING ITEM

RECOMMENDED ACTION(S):

Title
Consider receiving the Year-End Financial Statements and Independent Auditor's Report for Fiscal Year Ended June 30, 2020.
Body

STRATEGIC IMPORTANCE:

Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization

With this staff report and its attendant financial reports, the District officially closes out its fiscal year ended June 30, 2020. These timely financial reports provide the final reference point to review its financial performance of the past fiscal year and helps to provide a fully informed basis to assist in planning for future periods.

BUDGETARY/FISCAL IMPACT:

During Fiscal Year 2019-20, the District had revenues earned during the period of $503.4 million over expenses (not including depreciation) of $493.7 million or an operating surplus (modified) of $9.7 million. After applying depreciation expense of $44.3 million and capital revenues of $36.3 million, as of June 30, 2020 the increase to net position was $0.7 million, or $71.1 million. However, due to an accounting rule change (related to revenue recognition) there was a prior period adjustment of $1.5 million to increase to the District's net position to $72.6 million as of June 30, 2020. It can be noted that without the $30.0 million of Federal Cares Act funds received during the period, the District's Net Position would have been eroded, without the prior period adjustment, by $29.3 million as of June 30, 2020.

BACKGROUND/RATIONALE:

The Statement of Fund Net Position (formerly Statement of Net Assets) presents information about assets and liabilities with the difference between the two reported as net position. In accordance with Board Policy 340, Accounting Policies, the annual audit of the financial statements has been completed ...

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