HomeMy WebLinkAboutItem 4.4 - 2999 FY 2018-19 CAFR
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STAFF REPORT
CITY COUNCIL
DATE: December 17, 2019
TO: Honorable Mayor and City Councilmembers
FROM:
Christopher L. Foss, City Manager
SUBJECT:
Comprehensive Annual Financial Report (CAFR) and Annual Audit for
Fiscal Year Ending June 30, 2019 and Supplemental Reports Completed
by the Auditors
Prepared by: Colleen Tribby, Director of Administrative Services and Lisa
Hisatomi, Assistant Director of Administrative Services
EXECUTIVE SUMMARY:
The City Council will receive the Comprehensive Annual Financial Report (CAFR),
for the Fiscal Year ending June 30, 2019. This report includes financial statements
prepared by City staff along with the audit prepared by Badawi and Associates,
the independent auditors selected by the City Council. The CAFR is a report which
encompasses information beyond minimum financial reporting requirements. The
Auditors have provided a "clean opinion" based on their review.
The Auditors have also completed the following supplemental reports: 1) a
compliance audit of Alameda County Transportation Measure B Funds; 2) a
compliance audit of the Alameda County Transportation Commission Fund
(ACTC-VRF) Program; 3) a compliance audit of Alameda County Transportation
Measure BB Funds; and 4) a review of the City's Annual A ppropriations Limit
Calculation.
These reports have been reviewed by the City Council Ad -Hoc Audit Subcommittee.
STAFF RECOMMENDATION:
Receive the reports.
FINANCIAL IMPACT:
Summarized financial information is discussed in this Staff Report, and Attac hment
1 provides a guide to key information found in the CAFR. The full CAFR is included
as Attachment 2.
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DESCRIPTION:
The City of Dublin has prepared its Comprehensive Annual Financial Report
(CAFR) for the Fiscal Year ending June 30, 2019. The CAFR (At tachment 2)
includes audited financial statements reviewed by Badawi and Associates, the
independent auditor selected by the City Council, and concludes the second year
of the three-year audit services contract.
Ad-Hoc Audit Committee Review
The auditors met with the City Council Ad-Hoc Audit Committee, comprised of City
Councilmember Josey and Councilmember Kumagai, on December 12, 2019, to
review the results of the audit. The interaction of the auditors directly with
representatives of the elected body is a key component to audit standards and
provides committee members an opportunity to discuss the report and ask
questions of the auditors.
Overall, based on their testing and review, the auditors granted the City a "clean
opinion" (see CAFR pages 1 - 3), meaning that the City's financial statements
present fairly, in all material respects, the financial position of the City.
Financial Overview
Attachment 1 provides a guide to key elements contained in the CAFR. Some of
the important financial results include:
Increased Total Net Assets - Net assets increased by $64.4 million, as shown in
Table 1 below. This change is on an entity -wide basis and includes both capital
assets as well as restricted funds. Included in the Management Discussion and
Analysis section of the CAFR is a discussion of the changes in Net Assets (CAFR
pages 6 on). It is important to note that the amount reported as Total Net Assets
includes:
1. $531.3 million (65% of total net assets) in investments in capital assets (e.g.
land, infrastructure, buildings, and equipment). These are not assets that are
available for future spending.
2. $105.4 million (13% of total net assets) are subject to external restrictions on
how they can be used, such as development impact fee funds.
3. $177.7 million (22% of total net assets) in net assets are unrestricted.
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Memorandum on Internal Controls (MOIC) (Attachment 3)
The MOIC includes a report on the City's accounting and reporting procedures, as
well as recommendations for process improvements. The report does not note any
issues for FY 2018-19. The MOIC also discusses implementation of new
Governmental Accounting Standards Board pronouncements.
Designations of Fund Balances
The City's Fund Balance and Reserves Policy conforms to required standards
enacted by the GASB. A listing of the FY 2018 -19 year-end major fund reserves
established in accordance with this policy is shown on CAFR page 75. The
following table summarizes the fund balances for all City funds:
TABLE 2: GOVERNMENTAL FUND BALANCE CHANGES
June 30, 2019 and 2018
June 30, 2019 June 30, 2018 $ Change % Change
General Fund 171,225,773 142,112,666 29,113,107 20.5%
Affordable Housing Fund 28,731,551 27,669,545 1,062,006 3.8%
Measure BB Grant Fund (3,619,580) (1,002,609) (2,616,971) 261.0%
Capital Improvement Funds 62,835,345 61,234,876 1,600,469 2.6%
Other Governmental Funds 15,405,858 15,577,152 (171,294) -1.1%
Total Governmental Funds 274,578,947 245,591,630 28,987,317 11.8%
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As shown above, General Fund Reserves totaled $171.2 million as of June 30, 2019.
$54.8 million of that is available for cash flow purposes, equating to 8.3 months of
budgeted operating expenditures in FY 2019-20. This exceeds the target as guided by
the City Policy, which sets the cash flow goal at between two and four months of the
next year's budget.
Additional Reports Prepared by Auditors
In addition to the audit of the financial statements, the auditor engageme nt also
included the completion of specialized reports. The four supplemental reports
include:
1. A compliance audit of Alameda County Transportation Commission (ACTC)
Measure B Funds
2. A compliance audit of the ACTC Vehicle Registration Fee (Measure F) Program
3. A compliance audit of the ACTC Measure BB Program
4. A review of the City's Annual Appropriations Limit Calculation
The City did not meet the threshold of $750,000 in expenditures of federal funds in
FY 2018-19, and therefore was not required to complete a Federal Grant -Single
Audit Report. The following briefly summarizes each supplemental report:
ACTC Measure B Funds Report (Attachment 4):
ACTC provides local funding via two local programs: 1) Local Street Improvements;
and 2) Bicycle and Pedestrian Improvements. During FY 2018-19, the following
projects were funded by Measure B:
- Citywide Bicycle and Pedestrian Improvements
- Street Slurry Seal Program
- Street Overlay Program
The compliance audit found that, based on the information reviewed and
presented, the expenditures were materially in compliance with the program
requirements.
As of June 30, 2019, the Local Streets fund balance of $543,438 is assigned to a
Capital Reserve for the continued street improvement projects, and the Bike/
Pedestrian fund balance of $316,166 is restricted to the appropriate related bike
and pedestrian program improvements.
ACTC Vehicle Registration Fee (Measure F) Report (Attachment 5):
The City of Dublin uses a Special Revenue Fund to account for the fund s collected
through the ACTC's Vehicle Registration Fee. The goal of the program is to
sustain the County's transportation network through a distribution of the funds
throughout the County on successive five-year cycles.
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As of June 30, 2019, the ACTC VRF fund had a balance of $247,223 in restricted
funds. The FY 2018-19 Budget appropriated funds from this source to support
upgrades to citywide traffic signals.
ACTC Measure BB Report (Attachment 6):
Alameda County Measure BB was approved by the voters in November 2014, with
70% of the vote. The fee is expected to generate about $30 billion over the next 30
years funded by an additional one -half cent sales tax to be used for transportation
related expenditures. The program includes four categories of projec ts: 1) Transit;
2) Affordable Transit for Seniors and People with Disabilities; 3) Local Streets and
Roads; and 4) Bicycle and Pedestrian Path and Safety.
As of June 30, 2019, the Measure BB Fund had a restricted fund balance of
$306,614 for Local Streets and Roads, and $204,881 restricted for Bicycle and
Pedestrian improvements. Expenditures of these funds in FY 2018 -19 were related
to the City's Street Overlay Program and Citywide Bicycle and Pedestrian
Improvements.
Appropriation Limit Schedule Report (Attachment 7):
State law requires the adoption of an Appropriations Limit (Limit) which must be
included in the Budget document. The City Council adopts the Limit by resolution,
and it is adjusted annually based on factors establish in State Law. The Lim it
applies only to appropriations that are funded by "proceeds of taxes." The Limit for
the City of Dublin is substantially more than the amount of revenue generated from
taxes. The Auditors reviewed the calculation used to develop the $372,487,106
Limit as presented in the FY 2019-20 Budget. There were no exceptions noted in
the findings.
STRATEGIC PLAN INITIATIVE:
Strategy 1: Assure the City’s long-term financial sustainability;
Strategic Objective 1A: Maintain strong conservative fiscal policies.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS:
1. Summary - Key Information
2. City of Dublin CAFR FY 2018-19
3. City of Dublin MOIC FY 2018-19
4. City of Dublin FY 2018-19 Measure B Report
5. City of Dublin FY 2018-19 Measure F Report
6. City of Dublin FY 2018-19 Measure BB Report
7. CIty of Dublin Appropriations Limit FY 2019-20
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SUMMARY - KEY INFORMATION
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDING JUNE 30, 2019
City Council Meeting December 1 7, 2019
1. Includes audited financial statements reviewed by the City's audit firm, Badawi &
Associates.
2. The auditors’ opinion is that the City's financial statements fairly represent the City's
financial position.
3. The CAFR format will allow the City to apply for a Certificate of Achievement from the
Government Finance Officers Association (GFOA). The goal is to provide financial
information of the highest quality, in a transparent manner.
4. ORGANIZATION OF DRAFT REPORT:
a. Transmittal letter (beginning page v): provides a general overview of economic
and budgetary factors that impact the City.
b. Opinion issued by the Independent Auditor (beginning page 1).
c. Management Discussion and Analysis (MD&A) (beginning page 5): provides an
overview of the financial activities, with a focus on significant trends, as well as
major changes associated with the City's major funds (i.e. General Fund and
Impact Fee funds).
d. Financial Statements: a significant portion of the CAFR is comprised of financial
statements and schedules for the various funds used to account for the City's
revenue and expenditures. Pages 24-26 present the Government-Wide
Statement of Net Position presents financial statements similar to those used by
private corporations. That section is followed by financial statements for each
fund.
e. Statistical Section (pages 186-end): the unaudited statistical section of the
CAFR includes graphs of relevant historical data.
5. Fund Balances - A complete listing of fund reserves and designations for all major
funds is shown on page 78 of the report.
6. Audit Recommendations / Disclosures - As part of the Audit Review the independent
auditors can present recommendations for consideration by the City. The process
allows the Auditors to disclose their observations on certain practices and policies that
need improvement. The report for FY 2017-18 does not note any findings. The report
also discusses implementation of new accounting standards. This information is
presented as a separate document titled "Memorandum on Internal Controls".
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Attachment 1
For full text of City of Dublin CAFR 2018-19
Use link
City of
Dublin
Dublin, California
Memorandum on Internal Control
And Required Communications
For the year ended June 30, 2019
City of Dublin
Memorandum on Internal Control and Required Communications
For the year ended June 30, 2019
Table of Contents
Page
Independent Auditors’ 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 .............................................. 1
Schedule of Material Weaknesses and Significant Deficiencies ................................................................... 3
Schedule of Other Matters ..................................................................................................................................... 4
Required Communications .................................................................................................................................... 5
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 Dublin
Dublin, 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,
each major fund, and the aggregate remaining fund information of the City of Dublin, California (City), as
of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements and have issued our report thereon dated December 10, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the 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 detected 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 limited 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
may exist that have not been identified.
To the Honorable Mayor and Members of the City Council
of the City of Dublin
Dublin, California
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’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 which could have a direct and material effect on the
determination of financial statement amounts. 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 and Associates
Berkeley, California
December 10, 2019
CITY OF DUBLIN
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF MATERIAL WEAKNESSES AND SIGNFICANT DEFICIENCES
During our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses.
CITY OF DUBLIN
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking effect in the next two years. We have
cited them here to keep you abreast of developments:
Effective in fiscal year 19-20
GASB Statement No. 84 – Fiduciary Activities
The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local governments.
The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary
activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to
identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities.
GASB Statement No. 90 – Majority Equity Interest – an amendment of GASB Statement No. 14 and No. 61
The primary objectives of this Statement are to improve the consistency and comparability of reporting a
government’s majority equity interest in a legally separate organization and to improve the relevance of
financial statement information for certain component units. It defines a majority equity interest and
specifies that a majority equity interest in a legally separate organization should be reported as an
investment if a government’s holding of the equity interest meets the definition of an investment.
Effective in fiscal year 20-21
GASB Statement No. 87 – Leases
The objective of this Statement is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. This Statement increases the
usefulness of governments’ financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. Under this Statement, a
lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is
required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance
and consistency of information about governments’ leasing activities.
GASB Statement No. 89 – Accounting for Interest Cost Incurred before the End of a Construction Period
The objectives of this Statement are (1) to enhance the relevance and comparability of information about
capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest
cost incurred before the end of a construction period. This Statement requires that interest cost incurred
before the end of a construction period be recognized as an expense in the period in which the cost is
incurred for financial statements prepared using the economic resources measurement focus.
December 10, 2019
To The Honorable Mayor and Members
of the City Council of the City of Dublin
Dublin, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Dublin, California (City) for the year ended June 30, 2019.
Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards and Government Auditing Standards, as well as certain information
related to the planned scope and timing of our audit.
Our Responsibilities under U.S. Generally Accepted Auditing Standards and Government Auditing
Standards
As stated in our engagement letter dated June 4, 2019, our responsibility, as described by professional
standards, is to express opinions about whether the financial statements prepared by management with
your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted
accounting principles. Our audit of the financial statements does not relieve you or management of your
responsibilities.
As part of our audit, we considered the internal control of the City. Such considerations were solely for the
purpose of determining our audit procedures and not to provide any assurance concerning such internal
control.
As part of obtaining reasonable assurance about whether the financial statements were free of material
misstatement, we also performed tests of the City’s compliance with certain provisions of laws, regulations,
contracts, and grants. However, providing an opinion on compliance with those provisions was not an
objective of our audit.
Planned Scope and Timing of the Audit
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit involves judgment about the number of transactions to be
examined and the areas to be tested.
Our audit included obtaining an understanding of the city and its environment, including internal control,
sufficient to assess the risks of material misstatement of the financial statements and to design the nature,
timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2)
fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental
regulations that are attributable to the entity or to acts by management or employees acting on behalf of the
entity.
We performed the audit according to the timing previously communicated to you on the engagement letter.
To The Honorable Mayor and Members
of the City Council of the City of Dublin
Dublin, California
Page 2
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements described in Note 1
to the financial statements, the City changed accounting policies related to financial reporting by adopting
the following new pronouncements:
GASB No. 83, Certain Asset Retirement Obligations
GASB No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected. The most sensitive estimates affecting the City’s financial statements were:
Depreciable lives and estimated residual value of property and equipment
Investments valuations
Allowance for uncollectible accounts
Accumulated depreciation
Pension plans (actuarial assumptions)
Net Other Post-employment Benefits (OPEB) plan (actuarial assumptions)
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most sensitive disclosure(s) affecting the financial statements were:
Summary of Significant Accounting Policies
Cash and Investments
Long Term Debt
Capital Assets
Employee Retirement Plans
Other Postemployment Benefits (OPEB) Plan
Commitments and Contingencies
The financial statement disclosures are neutral, consistent, and clear.
To The Honorable Mayor and Members
of the City Council of the City of Dublin
Dublin, California
Page 3
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has recorded all proposed adjustments.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letters dated December 10, 2019.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the City’s financial statements or a determination of the type of auditor’s
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to
our retention.
Other Matters
We applied certain limited procedures to the required supplementary information (RSI) that supplements
the basic financial statements. Our procedures consisted of inquiries of management regarding the methods
of preparing the information and comparing the information for consistency with management’s responses
to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance
on the RSI.
To The Honorable Mayor and Members
of the City Council of the City of Dublin
Dublin, California
Page 4
We were engaged to report on the combining and individual fund financial statements, and budgetary
comparison schedules, which accompany the financial statements but are not RSI. With respect to this
supplementary information, we made certain inquiries of management and evaluated the form, content,
and methods of preparing the information to determine that the information complies with accounting
principles generally accepted in the United States of America, the method of preparing it has not changed
from the prior period, and the information is appropriate and complete in relation to our audit of the
financial statements. We compared and reconciled the supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory section and statistical section, which accompany the
financial statements but are not RSI. Such information has not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
Restriction on Use
This information is intended solely for the use of City Council and management of City and is not intended
to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Badawi & Associates,
Certified Public Accountants
Berkeley, California
December 10, 2019
City of Dublin
Measure B Funds
Dublin, California
Financial Statements and
Independent Auditor’s Reports
For the year ended June 30, 2019
City of Dublin
Alameda County Transportation Commission – Measure B Funds
Financial Statements
For the year ended June 30, 2019
Table of Contents
Page
Independent Auditor’s Report .............................................................................................................................. 1
Financial Statements:
Balance Sheets ..................................................................................................................................................... 5
Statement of Revenues, Expenditures and
Changes in Fund Balances ............................................................................................................................. 6
Notes to Financial Statements .............................................................................................................................. 7
Supplementary Information:
Budgets and Budgetary Accounting ................................................................................................................. 12
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Measure B – ACTC Streets and Roads Special Revenue Fund .................................................................. 13
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Measure B – ACTC Bikes and Pedestrians Special Revenue Fund ........................................................... 14
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 ...................................................................................................................... 15
Independent Auditor’s Report on Measure B Compliance ........................................................................... 17
1
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Measure B Funds (Measure B Funds) of the
City of Dublin, California (City), as of and for the year ended June 30, 2019 and the related notes to the
financial statements.
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 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 entity’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 entity’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 opinions.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Measure B Funds of the City as of June 30, 2019, 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 B Funds and do not purport to,
and do not, present fairly the financial positions of the City as of June 30, 2019, and the changes in its
financial position 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 Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Measure B Funds’ financial statements. The budgetary comparison information is presented
for purposes of additional analysis and are not a required part of the financial statements.
The budgetary comparison information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial statements.
Such information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the budgetary comparison information
is fairly stated, in all material respects, in relation to the financial statements as a whole.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2019,
on our consideration of the City’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 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 City’s internal control over financial reporting and
compliance.
Badawi & Associates
Certified Public Accountants
Berkeley, California
December 10, 2019
4
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City of Dublin
Alameda County Transportation Commission- Measure B Funds
Balance Sheets
ACTC ACTC
Streets and Bikes and
Roads Pedestrians Total
ASSETS:
Cash and investments 442,079$ 279,589$ 721,668$
Direct local distribution program receivables 101,359 36,583 137,942
Total assets 543,438$ 316,172$ 859,610$
LIABILITIES AND FUND BALANCES:
Accounts payable and accrued liabilities -$ 6$ 6$
Total liabilities - 6 6
Fund Balances:
Restricted 543,438 316,166 859,604
Total fund balances 543,438 316,166 859,604
543,438$ 316,172$ 859,610$
June 30, 2019
Total liabilities and fund balances
See accompanying Notes to Financial Statements.
5
City of Dublin
Alameda County Transportation Commission- Measure B Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
ACTC ACTC
Streets and Bikes and
Roads Pedestrians Total
REVENUES:
Measure B revenue 616,240$ 222,418$ 838,658$
Interest Income 7,947 9,686 17,633
Total revenues 624,187 232,104 856,291
EXPENDITURES:
Bikes and Pedestrians - 9,726 9,726
Streets and Roads 588,310 472,090 1,060,400
Total expenditures 588,310 481,816 1,070,126
EXPENDITURES 35,877 (249,712) (213,835)
FUND BALANCES:
Beginning of year 507,561 565,878 1,073,439
End of year 543,438$ 316,166$ 859,604$
For the year ended June 30, 2019
REVENUES OVER (UNDER)
See accompanying Notes to Financial Statements.
6
City of Dublin
Alameda County Transportation Commission – Measure B Funds
Notes to Financial Statements, Continued
For the year ended June 30, 2019
7
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
All transactions of the Alameda County Transportation Commission – Measure B Funds (Measure B
Funds) of the City of Dublin, California (City), are included as a separate special revenue fund in the basic
financial statements of the City. Measure B Funds are used to account for the City’s share of revenues
earned and expenditures incurred under the City’s local streets and roads, and bike and pedestrian
programs. The accompanying financial statements are for Measure B Funds only and are not intended to
fairly present the financial position or results of operations of the City.
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 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 sheet. Operating
statements of governmental funds present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
C. Fund Accounting
The operations of the Measure B Funds are accounted for in separate special revenue funds. The funds
are separate accounting entities with a set of self-balancing accounts which comprise their assets,
liabilities, fund equity, revenues, and expenses.
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.
2. MEASURE B FUNDS
Under Measure B, approved by the voters of Alameda County in 1986 (ACTA Old Measure B) and in 2000,
(ACTC Measure B), the City receives a portion of the proceeds of an additional one-half cent sales tax to be
used for transportation-related expenditures. This measure was adopted with the intention that the funds
generated by the additional sales tax will not fund expenditures previously paid for by property taxes but,
rather, would be used for additional projects and programs.
Major projects funded by Measure B were as follows:
Streets and Roads Program – To improve, repair, and overlay city streets.
Bike and Pedestrian Program – To provide sidewalk and American Disability Act (ADA) improvements and
to implement the bikeway network.
City of Dublin
Alameda County Transportation Commission – Measure B Funds
Notes to Financial Statements, Continued
For the year ended June 30, 2019
8
3. CASH AND INVESTMENTS
Measure B funds are pooled with the City’s cash and investments in order to generate optimum interest
income.
The City pools its available cash for investment purposes. The City’s cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturity of three
months or less from date of acquisition. Cash and cash equivalents are combined with investments and
displayed as Cash and Investments.
Measure B Funds had the following cash and investments at June 30, 2019:
Cash and Investments $ 721,668
A. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government
Code, the following investments are authorized:
Authorized Investment Type
Maximum
Maturity
Minimum Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment In
One Issuer
Negotiable Certificates of Deposit 5 years A-1 30% 20%
Bankers' Acceptance 180 days A-1 40% 20% of Portfolio
U.S. Treasury Bills and Notes 5 years N/A No Limit No Limit
U.S. Government Agency Securities 5 years N/A 25% for callable 35%
California Asset Management Program N/A N/A No Limit No Limit
Commercial Paper 270 days A-1 25% 20% of Portfolio
Time Certificates of Deposit 1 year N/A 10% No Limit
State Local Agency Investment Fund N/A N/A No Limit No Limit
Asset-Backed Securities N/A AA 20% 5%
Medium_Term Notes 5 years A 30% 5%
Money Market Funds N/A AAA 20% No Limit
Municipal Securities 5 years A No Limit 5%
Supranationals 5 years AA 30% 10%
City of Dublin
Alameda County Transportation Commission – Measure B Funds
Notes to Financial Statements, Continued
For the year ended June 30, 2019
9
3. CASH AND INVESTMENTS, Continued
A. Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and
for External Investment Pools, investments were stated at fair value using the aggregate method in all funds
and component units. The City’s investments are carried at fair market value as required by generally
accepted accounting principles. The City accounts for all changes in fair value that occurred during the
year and are reflected in the fund balance for the fiscal year. These investment value changes are
unrealized since the City’s policy is to generally hold and buy investments until maturity dates.
B. Risk Disclosures
Interest Risk – Interest rate risk is the fluctuation in fair value of investments due to changes in interest
rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average
maturity of the City’s investment not to exceed five years.
Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its
rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S.
Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will
be invested in a single security type or with a single financial institution to reduce the City’s exposure to
credit risks.
Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities that
are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk.
C. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of California.
The City’s investments with LAIF at June 30, 2019, include a portion of the pool funds invested in
Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have
embedded forwards or options.
Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to
receive a share of the cash flows from a pool of assets such as principal and interest repayments from a
pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2019, the City invested in LAIF, which had invested 2.87% of the pool investment funds in
Structured Notes and Asset-Backed Securities as compared to 2.67% in the previous year. The LAIF fair
value factor of 1.001711790 was used to calculate the fair value of the investments in LAIF.
City of Dublin
Alameda County Transportation Commission – Measure B Funds
Notes to Financial Statements, Continued
For the year ended June 30, 2019
10
4. DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLES
The receivables represent the Measure B sales tax revenues for the fiscal year received from the Alameda
County Transportation Commission after June 30, 2019.
5. COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs are subject to further examination by the
grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot
be determined at this time. The City expects such amounts, if any, to be immaterial.
11
SUPPLEMENTARY INFORMATION
City of Dublin
Alameda County Transportation Commission – Measure B Funds
Supplementary Information
For the year ended June 30, 2019
12
1. BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the basic financial
statements:
Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing the following July 1. The operating budget includes proposed expenditures
and the means of financing them.
The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior
to July 1, the budget is legally enacted through passage of a resolution.
During the fiscal year, the City Manager is authorized to transfer budgeted amounts between line
items, provided that the transfer is within the same fund, regardless of the specific department
activity. This include the authority to transfer from the General Fund budgeted contingency amounts
that are approved by the City Council during the budget adoption. The City Manager is authorized
to increase revenue and expenditure budget for various departmental functions, when the net budget
impact is zero.
The City Manager is authorized to increase the appropriations for the following fiscal year in an
amount not to exceed the amount of funds encumbered or designated by the City Manager as needed
for expenses that did not occur prior to the year-end, but are expected to be expended in the next year
consistent with the original purpose.
As part of the annual Budget adoption the City Council authorizes the carry-over unexpended
capital project appropriations, for those projects where work and expenditures will continue in
the subsequent year.
Formal budgetary integration is employed as a management control device during the year for the
general fund, special revenue funds and capital projects funds.
Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent
with generally accepted accounting principles in the United States.
City of Dublin
Supplementary Information, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure B - ACTC Streets and Roads
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Measure B revenue 500,000$ 500,000$ 616,240$ 116,240$
Interest Income 529 529 7,947 7,418
Total revenues 500,529 500,529 624,187 123,658
EXPENDITURES:
Streets and Roads 490,000 997,344 588,310 409,034
Total expenditures 490,000 997,344 588,310 409,034
Net change in fund balance 10,529$ (496,815)$ 35,877 532,692$
FUND BALANCE:
Beginning of year 507,561
End of year 543,438$
Budgeted Amounts
For the year ended June 30, 2019
13
City of Dublin
Supplementary Information, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure B - ACTC Bikes and Pedestrians
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Measure B revenue 170,000$ 170,000$ 222,418$ 52,418$
Interest Income 139 139 9,686 9,547
Total revenues 170,139 170,139 232,104 61,965
EXPENDITURES:
Bikes and Pedestrians 17,961 17,961 9,726 8,235
Streets and Roads 172,000 721,872 472,090 249,782
Total expenditures 189,961 739,833 481,816 258,017
Net change in fund balance (19,822) (569,694) (249,712) 319,982
FUND BALANCE:
Beginning of year 565,878
End of year 316,166$
Budgeted Amounts
For the year ended June 30, 2019
14
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 City Council of the City of Dublin
Dublin, 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 Measure B Funds (Measure
B Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2019, and the related
notes to the financial statements, and have issued our report thereon dated December 10, 2019.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the 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 detected 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 limited 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
may exist that have not been identified.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
16
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure B Funds’ 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 which could have a direct and material
effect on the determination of financial statement amounts. 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
Certified Public Accountants
Berkeley, California
December 10, 2019
INDEPENDENT AUDITOR’S REPORT ON MEASURE B COMPLIANCE
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Compliance
We have audited the City of Dublin’s (City) compliance with the types of compliance requirements
described in the agreement between the City and Alameda County Transportation Commission applicable
to the City’s Measure B 2000 Funds (Measure B Funds) for the year ended June 30, 2019.
Management’s Responsibility
Compliance with the requirements referred to above is the responsibility of the City’s management.
Auditor’s Responsibility
Our responsibility is to express an opinion on the City’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States; the standards applicable to financial audits contained in Government Audit Standards issued
by the Comptroller General of the United States; and the agreement between the City and Alameda County
Transportation Commission. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the compliance requirements referred to above
that could have a material effect on the Measure B Funds occurred. An audit also 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. Our audit does not provide a legal determination of the City’s compliance
with those requirements.
Opinion
In our opinion the City complied, in all material respects, with the compliance requirements referred to above
that are applicable to the Measure B Funds for the year ended June 30, 2019.
Other Matter
Under Measure B, approved by the voters of Alameda County in 2000, the City has received under
Alameda County Transportation Improvement Authority Measure B a total of 12 months of revenue from
July 2018 through June 2019. The Local Street and Roads program has received $616,240 and the Bike and
Pedestrian program has received $222,418. This financial statement reflects twelve months of revenue for
the Paratransit, Local Streets and Roads, and the Bike and Pedestrian programs.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
18
Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the compliance requirements referred to above. In planning and performing our audit, we
considered the City’s internal control over compliance to determine the auditing procedures for the purpose
of expressing our opinion on 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 does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, noncompliance 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 compliance requirement will not be prevented, or detected
and corrected, on a timely basis.
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.
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 agreement between the City and
Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose.
Badawi & Associates
Certified Public Accountants
Berkeley, California
December 10, 2019
City of Dublin
Measure F Alameda
County Vehicle
Registration Fee Fund
Dublin, California
Financial Statements and
Independent Auditor’s Reports
For the year ended June 30, 2019
City of Dublin
Measure F Alameda County Vehicle Registration Fee Fund
Financial Statements
For the year ended June 30, 2019
Table of Contents
Page
Independent Auditor’s Report ............................................................................................................................. 1
Financial Statements:
Balance Sheet ...................................................................................................................................................... 3
Statement of Revenues, Expenditures and
Changes in Fund Balance .............................................................................................................................. 4
Notes to Financial Statements ............................................................................................................................. 5
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 ..................................................................................................................... 11
Independent Auditor’s Report on Measure F Compliance ........................................................................... 13
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Measure F Alameda County Vehicle
Registration Fee Fund (VRF Fund) of the City of Dublin, California (City), as of and for the year ended June
30, 2019 and the related notes to the financial statements.
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 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 entity’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 entity’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 opinions.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the VRF Fund of the City as of June 30, 2019, 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 VRF Fund and do not purport to, and do
not, present fairly the financial positions of the City as of June 30, 2019, and the changes in its financial
position 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 10, 2019,
on our consideration of the City’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 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 City’s internal control over financial reporting and
compliance.
Badawi & Associates
Certified Public Accountants
Berkeley, California
December 10, 2019
City of Dublin
Measure F Alameda County Vehicle Registration Fee Fund
Balance Sheet
June 30, 2019
ASSETS:
Cash and investments 209,690$
Direct local distribution program receivables 51,071
Total assets 260,761$
LIABILITIES AND FUND BALANCES:
Other accrued liabilities 13,538$
Total liabilities 13,538
Fund Balance:
Restricted 247,223
Total fund balance 247,223
Total liabilities and fund balance 260,761$
See accompanying Notes to Financial Statements.
3
City of Dublin
Measure F Alameda County Vehicle Registration Fee Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
REVENUES:
Measure F revenues 293,701$
Use of money and property 5,767
Total revenues 299,468
EXPENDITURES:
Contractual services 197,943
Streets and roads 144,919
Total expenditures 342,862
EXPENDITURES (43,394)
FUND BALANCE:
Beginning of year 290,617
End of year 247,223$
For the year ended June 30, 2019
REVENUES OVER
See accompanying Notes to Financial Statements.
4
City of Dublin
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements
For the year ended June 30, 2019
5
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
All transactions of the Measure F Alameda County Vehicle Registration Fees are reported in a special
revenue fund (VRF Fund) of the City of Dublin, California (City). The special revenue fund is included
as part of the State Construction and Maintenance fund in the basic financial statements of the City. The
Fund is used to account for the City’s revenues earned and expenditures incurred under the City’s
various street maintenance and construction projects. The accompanying financial statements are for
the VRF Fund only and are not intended to fairly present the financial position of the City.
B. 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 sheet.
Operating statements of governmental funds present increases (revenues and other financing sources)
and decreases (expenditures and other financing uses) in net current assets.
C. Fund Accounting
The operations of the VRF Fund are accounted for as part of the State Construction and Maintenance
Fund. Funds are separate accounting entities with a set of self-balancing accounts which comprise their
assets, liabilities, fund equity, revenues, and expenditures.
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. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City’s cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturity of
three months or less from date of acquisition. Cash and cash equivalents are combined with investments
and displayed as Cash and Investments.
City of Dublin
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements
For the year ended June 30, 2019
6
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
E. Cash, Cash Equivalents, and Investments, Continued
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB
No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following
areas:
Interest Rate Risk
Credit Risk
Overall
Custodial Credit Risk
Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and
investments, highly sensitive investments, credit quality at year-end and other disclosures.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and
for External Investment Pools, highly liquid market investments with maturities of one year or less at time
of purchase are stated at amortized cost.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and
Asset-Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the
State of California collateralizing these investments. In addition, these Structured Notes and Asset-
Backed Securities are subject to market risk as to change in interest rates.
F. Revenues and Receivables
During the course of normal operations, the fund carries various receivable balances for
intergovernmental revenue and interest. Revenues are recorded when received in cash, except revenues
subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue
sources, which have been treated as susceptible to accrual by the fund, are Measure F vehicle
registration fees.
City of Dublin
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements
For the year ended June 30, 2019
7
2. MEASURE F ALAMEDA COUNTY VEHICLE REGISTRATION FEES
The Measure F Alameda County Vehicle Registration Fee (VRF) Program was approved by the voters in
November 2010, with 63 percent of the vote. The fee will generate about $10.7 million per year by a $10 per
year vehicle registration fee. The collection of the $10 per year vehicle registration fee started in the first
week of May 2011.
The goal of the VRF program is to sustain the County’s transportation network and reduce traffic
congestion and vehicle related pollution. The program includes four categories of projects:
Local Road Improvement and Repair Program (60 percent)
Transit for Congestion Relief (25 percent)
Local Transportation Technology (10 percent)
Pedestrian and Bicyclist Access and Safety Program (5 percent)
3. CASH AND INVESTMENTS
The VRF Fund’s cash and investments are pooled with the City’s cash and investments in order to generate
optimum interest income.
The City pools its available cash for investment purposes. The City’s cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturity of
three months or less from date of acquisition. Cash and cash equivalents are combined with investments
and displayed as Cash and Investments.
VRF Fund had the following cash and investments at June 30, 2019:
Cash and Investments $ 209,690
City of Dublin
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements
For the year ended June 30, 2019
8
3. CASH AND INVESTMENTS, Continued
A. Investments
The City's Investment Policy and the California Government Code allow the City to invest in the
following, provided the credit ratings of the issuers are acceptable to the City; and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of the
California Government Code, or the City's Investment Policy where the City's Investment Policy is more
restrictive.
Authorized Investment Type
Maximum
Maturity
Minimum Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment In
One Issuer
Negotiable Certificates of Deposit 5 years A-1 30% 20%
Bankers' Acceptance 180 days A-1 40% 20% of Portfolio
U.S. Treasury Bills and Notes 5 years N/A No Limit No Limit
U.S. Government Agency Securities 5 years N/A 25% for callable 35%
California Asset Management Program N/A N/A No Limit No Limit
Commercial Paper 270 days A-1 25% 20% of Portfolio
Time Certificates of Deposit 1 year N/A 10% No Limit
State Local Agency Investment Fund N/A N/A No Limit No Limit
Asset-Backed Securities N/A AA 20% 5%
Medium_Term Notes 5 years A 30% 5%
Money Market Funds N/A AAA 20% No Limit
Municipal Securities 5 years A No Limit 5%
Supranationals 5 years AA 30% 10%
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and
for External Investment Pools, investments were stated at fair value using the aggregate method in all
funds and component units. The City’s investments are carried at fair market value as required by
generally accepted accounting principles. The City accounts for all changes in fair value that occurred
during the year and are reflected in the fund balance for the fiscal year. These investment value changes
are unrealized since the City’s policy is to hold and buy investments until maturity dates.
City of Dublin
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements
For the year ended June 30, 2019
9
3. CASH AND INVESTMENTS, Continued
B. Risk Disclosures
Interest Risk – Interest rate risk is the fluctuation in fair value of investment due to changes in interest
rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average
maturity of the City’s investment not to exceed five years.
Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its
rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S.
Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will
be invested in a single security type or with a single financial institution to reduce the City’s exposure to
credit risks.
Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities that
are in the possession of an outside party. None of the City’s investments were subject to custodial credit
risk.
C. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City’s investments with LAIF at June 30, 2019, include a portion of the pool funds
invested in Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes – are debt securities (other than asset-backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices
and/or have embedded forwards or options.
Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to
receive a share of the cash flows from a pool of assets such as principal and interest repayments from a
pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2019, the City had invested in LAIF, which had invested 2.87% of the pool investment
funds in Structured Notes and Asset-Backed Securities as compared to 2.67% in the previous year. The
LAIF fair value factor of 1.001711790 was used to calculate the fair value of the investments in LAIF.
4. DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLES
The receivables represent the Measure F VRF revenues for the fiscal year received from the Alameda
County Transportation Commission after June 30, 2019.
5. COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs are subject to any further examination by
the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies
cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
10
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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 City Council of the City of Dublin
Dublin, 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 Measure F Alameda County
Vehicle Registration Fee Fund (VRF Fund) of the City of Dublin, California (City), as of and for the year
ended June 30, 2019, and the related notes to the financial statements, and have issued our report thereon
dated December 10, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) to determine the 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 detected 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 limited 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
may exist that have not been identified.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
12
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the VRF Fund’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 which could have a direct and material effect on the
determination of financial statement amounts. 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
Certified Public Accountants
Berkeley, California
December 10, 2019
INDEPENDENT AUDITOR’S REPORT ON MEASURE F COMPLIANCE
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Compliance
We have audited the City of Dublin’s (City) compliance with the types of compliance requirements
described in the agreement between the City and Alameda County Transportation Commission applicable
to the City’s Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) for the year ended June
30, 2019.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to the VRF Fund.
Auditor’s Responsibility
Our responsibility is to express an opinion on City’s compliance based on our audit. 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 the agreement between the City and Alameda County
Transportation Commission applicable to Measure F Alameda County Vehicle Registration Fee Fund.
Those standards and the agreement 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 VRF Fund. 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 VRF Fund.
However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Measure F Funds
In our opinion, the City complied, in all material respects, with the types of compliance requirements
related to the agreement between the City and Alameda County Transportation Commission applicable to
the VRF Fund for the year ended June 30, 2019.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
14
Report on Internal Control Over Compliance
Management of City 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 to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
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 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 a
federal 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 a federal 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 a federal 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.
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 of the
agreement between the City and Alameda County Transportation Commission applicable to the VRF Fund.
Accordingly, this report is not suitable for any other purpose.
Badawi & Associates
Certified Public Accountants
Berkeley, California
December 10, 2019
City of Dublin
Measure BB Funds
Dublin, California
Financial Statements and
Independent Auditor’s Reports
For the year ended June 30, 2019
City of Dublin
Alameda County Transportation Commission – Measure BB Funds
Financial Statements
For the year ended June 30, 2019
Table of Contents
Page
Independent Auditor’s Report ............................................................................................................................. 1
Financial Statements:
Balance Sheets ...................................................................................................................................................... 5
Statement of Revenues, Expenditures and
Changes in Fund Balances .............................................................................................................................. 6
Notes to Financial Statements ............................................................................................................................... 7
Supplementary Information:
Budgets and Budgetary Accounting .................................................................................................................. 12
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Measure BB – ACTC Streets and Roads Special Revenue Fund ................................................................. 13
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Measure BB – ACTC Bikes and Pedestrians Special Revenue Fund .......................................................... 14
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 ....................................................................................................................... 15
Independent Auditor’s Report on Measure BB Compliance ......................................................................... 17
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Measure BB Funds (Measure BB Funds) of the
City of Dublin, California (City), as of and for the year ended June 30, 2019 and the related notes to the
financial statements.
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 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 entity’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 entity’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 opinions.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
2
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Measure BB Funds of the City as of June 30, 2019, 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 Funds and do not purport to,
and do not, present fairly the financial positions of the City as of June 30, 2019, and the changes in its financial
position 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 Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Measure BB Funds’ financial statements. The budgetary comparison information is presented
for purposes of additional analysis and are not a required part of the financial statements.
The budgetary comparison information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the budgetary comparison information is fairly
stated, in all material respects, in relation to the financial statements as a whole.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 3
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 10, 2019,
on our consideration of the City’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 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 City’s internal control over financial reporting and compliance.
Badawi & Associates
Certified Public Accountants
Berkeley, California
December 10, 2019
4
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City of Dublin
Alameda County Transportation Commission- Measure BB Funds
Balance Sheets
June 30, 2019
ACTC ACTC
Streets and Bikes and
Roads Pedestrians Total
ASSETS:
Cash and investments 226,179$ 175,103$ 401,282$
Direct local distribution program receivables 90,743 29,777 120,520
Total assets 316,922$ 204,880$ 521,802$
LIABILITIES AND FUND BALANCES:
Accounts payable and accrued liabilities 10,308$ -$ 10,308$
Total liabilities 10,308 - 10,308
Fund Balances:
Restricted 306,614 204,880 511,494
Total fund balances 306,614 204,880 511,494
Total liabilities and fund balances 316,922$ 204,880$ 521,802$
See accompanying Notes to Financial Statements.
5
City of Dublin
Alameda County Transportation Commission- Measure BB Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
ACTC ACTC
Streets and Bikes and
Roads Pedestrians Total
REVENUES:
Measure BB revenue 552,022$ 181,149$ 733,171$
Use of money and property 4,616 2,206 6,822
Total revenues 556,638 183,355 739,993
EXPENDITURES:
Bikes and Pedestrians 40,000 10,675 50,675
Streets and Roads 570,541 100,000 670,541
Total expenditures 610,541 110,675 721,216
EXPENDITURES (53,903) 72,680 18,777
FUND BALANCES:
Beginning of year 360,517 132,200 492,717
End of year 306,614$ 204,880$ 511,494$
For the year ended June 30, 2019
REVENUES OVER (UNDER)
See accompanying Notes to Financial Statements.
6
City of Dublin
Alameda County Transportation Commission – Measure BB Funds
Notes to Financial Statements, Continued
For the year ended June 30, 2019
7
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
All transactions of the Alameda County Transportation Commission – Measure BB Funds (Measure BB
Funds) of the City of Dublin, California (City), are included as a separate special revenue fund in the basic
financial statements of the City. Measure BB Funds are used to account for the City’s share of revenues
earned and expenditures incurred under the City’s paratransit, local streets and roads, and bike and
pedestrian programs. The accompanying financial statements are for Measure BB Funds only and are not
intended to fairly present the financial position or results of operations of the City.
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 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 sheet. Operating
statements of governmental funds present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in net current assets.
C. Fund Accounting
The operations of the Measure BB Funds are accounted for in separate special revenue funds. The funds
are separate accounting entities with a set of self-balancing accounts which comprise their assets,
liabilities, fund equity, revenues, and expenses.
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.
2. MEASURE BB FUNDS
Under Measure BB, approved by the voters of Alameda County in 2014, the City receives a portion of the
proceeds of an additional one-half cent sales tax to be used for transportation-related expenditures. This
measure was adopted with the intention that the funds generated by the additional sales tax will not fund
expenditures previously paid for by property taxes but, rather, would be used for additional projects and
programs.
Major projects funded by Measure BB were as follows:
Streets and Roads Program – To improve, repair, and overlay city streets.
Bike and Pedestrian Program – To provide sidewalk and American Disability Act (ADA) improvements and
to implement the bikeway network.
City of Dublin
Alameda County Transportation Commission – Measure BB Funds
Notes to Financial Statements, Continued
For the year ended June 30, 2019
8
3. CASH AND INVESTMENTS
Measure BB funds are pooled with the City’s cash and investments in order to generate optimum interest
income.
The City pools its available cash for investment purposes. The City’s cash and cash equivalents are
considered to be cash on hand, demand deposits, and short-term investments with original maturity of three
months or less from date of acquisition. Cash and cash equivalents are combined with investments and
displayed as Cash and Investments.
Measure BB Funds had the following cash and investments at June 30, 2019:
Cash and Investments $401,282
A. Investments
The City's Investment Policy and the California Government Code allow the City to invest in the
following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages
and maturities are not exceeded. The table below also identifies certain provisions of the California
Government Code, or the City's Investment Policy where the City's Investment Policy is more restrictive.
Authorized Investment Type
Maximum
Maturity
Minimum Credit
Quality
Maximum
Percentage of
Portfolio
Maximum
Investment In
One Issuer
Negotiable Certificates of Deposit 5 years A-1 30%20%
Bankers' Acceptance 180 days A-1 40% 20% of Portfolio
U.S. Treasury Bills and Notes 5 years N/A No Limit No Limit
U.S. Government Agency Securities 5 years N/A 25% for callable 35%
California Asset Management Program N/A N/A No Limit No Limit
Commercial Paper 270 days A-1 25% 20% of Portfolio
Time Certificates of Deposit 1 year N/A 10%No Limit
State Local Agency Investment Fund N/A N/A No Limit No Limit
Asset-Backed Securities N/A AA 20%5%
Medium_Term Notes 5 years A 30%5%
Money Market Funds N/A AAA 20%No Limit
Municipal Securities 5 years A No Limit 5%
Supranationals 5 years AA 30%10%
City of Dublin
Alameda County Transportation Commission – Measure BB Funds
Notes to Financial Statements, Continued
For the year ended June 30, 2019
9
3. CASH AND INVESTMENTS, Continued
A. Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and
for External Investment Pools, investments were stated at fair value using the aggregate method in all funds
and component units. The City’s investments are carried at fair market value as required by generally
accepted accounting principles. The City accounts for all changes in fair value that occurred during the
year and are reflected in the fund balance for the fiscal year. These investment value changes are
unrealized since the City’s policy is to generally hold and buy investments until maturity dates.
B. Risk Disclosures
Interest Risk – Interest rate risk is the fluctuation in fair value of investments due to changes in interest
rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average
maturity of the City’s investment not to exceed five years.
Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its
rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S.
Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will
be invested in a single security type or with a single financial institution to reduce the City’s exposure to
credit risks.
Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities that
are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk.
C. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of California.
The City’s investments with LAIF at June 30, 2019, include a portion of the pool funds invested in
Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have
embedded forwards or options.
Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to
receive a share of the cash flows from a pool of assets such as principal and interest repayments from a
pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2019, the City had invested in LAIF, which had invested 2.87% of the pool investment funds
in Structured Notes and Asset-Backed Securities as compared to 2.67% in the previous year. The LAIF
fair value factor of 1.001711790 was used to calculate the fair value of the investments in LAIF.
City of Dublin
Alameda County Transportation Commission – Measure BB Funds
Notes to Financial Statements, Continued
For the year ended June 30, 2019
10
4. DIRECT LOCAL DISTRIBUTION FROGRAM RECEIVABLES
The receivables represent the Measure BB sales tax revenues for the fiscal year received from the Alameda
County Transportation Commission after June 30, 2019.
5. COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs are subject to further examination by the
grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot
be determined at this time. The City expects such amounts, if any, to be immaterial.
11
SUPPLEMENTARY INFORMATION
City of Dublin
Alameda County Transportation Commission – Measure BB Funds
Supplementary Information
For the year ended June 30, 2019
12
1. BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the basic financial
statements:
Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing the following July 1. The operating budget includes proposed expenditures
and the means of financing them.
The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior
to July 1, the budget is legally enacted through passage of a resolution.
During the fiscal year, the City Manager is authorized to transfer budgeted amounts between line
items, provided that the transfer is within the same fund, regardless of the specific department
activity. This include the authority to transfer from the General Fund budgeted contingency amounts
that are approved by the City Council during the budget adoption. The City Manager is authorized
to increase revenue and expenditure budget for various departmental functions, when the net budget
impact is zero.
The City Manager is authorized to increase the appropriations for the following fiscal year in an
amount not to exceed the amount of funds encumbered or designated by the City Manager as needed
for expenses that did not occur prior to the year-end, but are expected to be expended in the next year
consistent with the original purpose.
As part of the annual Budget adoption the City Council authorizes the carry-over unexpended
capital project appropriations, for those projects where work and expenditures will continue in
the subsequent year.
Formal budgetary integration is employed as a management control device during the year for the
general fund, special revenue funds and capital projects funds.
Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent
with generally accepted accounting principles in the United States.
City of Dublin
Supplementary Information, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure BB - ACTC Streets and Roads
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Measure BB revenue 450,000$ 450,000$ 552,022$ 102,022$
Use of money and property 342 342 4,616 4,274
Total revenues 450,342 450,342 556,638 106,296
EXPENDITURES:
Bikes and Pedestrians - 40,000 40,000 -
Streets and Roads 450,000 768,160 570,541 197,619
Total expenditures 450,000 808,160 610,541 197,619
Net change in fund balance 342$ (357,818)$ (53,903) 303,915$
FUND BALANCE:
Beginning of year 360,517
End of year 306,614$
Budgeted Amounts
For the year ended June 30, 2019
13
City of Dublin
Supplementary Information, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Measure BB - ACTC Bikes and Pedestrians
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:
Measure BB revenue 140,000$ 140,000$ 181,149$ 41,149$
Use of money and property 1,299 1,299 2,206 907
Total revenues 141,299 141,299 183,355 42,056
EXPENDITURES:
Bikes and Pedestrians 10,675 10,675 10,675 -
Streets and Roads 139,325 253,542 100,000 153,542
Total expenditures 150,000 264,217 110,675 153,542
Net change in fund balance (8,701)$ (122,918)$ 72,680 195,598$
FUND BALANCE:
Beginning of year 132,200
End of year 204,880$
Budgeted Amounts
For the year ended June 30, 2019
14
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 City Council of the City of Dublin
Dublin, 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 Measure BB Funds (Measure
BB Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2019, and the related
notes to the financial statements, and have issued our report thereon dated December 10, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting in relation to Measure BB Funds (internal control) to determine the 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 detected 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 limited 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 may exist that
have not been identified.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
16
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure BB Funds’ 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 which could have a direct and material effect on the
determination of financial statement amounts. 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
Certified Public Accountants
Berkeley, California
December 10, 2019
INDEPENDENT AUDITOR’S REPORT ON MEASURE BB COMPLIANCE
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Compliance
We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described
in the agreement between the City and Alameda County Transportation Commission applicable to the City’s
Measure BB Funds (Measure BB Funds) for the year ended June 30, 2019.
Management’s Responsibility
Management of the City is responsible for compliance with the requirements of laws, regulations, contracts,
and grants applicable to its Measure BB Funds.
Auditor’s Responsibility
Our responsibility is to express an opinion on City’s compliance based on our audit. 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 the agreement between the City and Alameda County
Transportation Commission applicable to Measure BB. Those standards and the agreement 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
Funds. 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 Measure BB Funds.
However, our audit does not provide a legal determination of the City’s compliance.
Opinion
In our opinion, the City complied, in all material respects, with the types of compliance requirements related
to the agreement between the City and Alameda County Transportation Commission applicable to Measure
BB for the year ended June 30, 2019.
Other Matter
Under Measure BB, approved by the voters of Alameda County in 2014, the City has received a total of 12
months of revenue from July 2018 through June 2019. The Local Street and Roads program has received
$552,022, and the Bike and Pedestrian program has received $181,149.
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
Page 2
18
Internal Control Over Compliance
Management of City 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 to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on 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 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 a federal 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 a federal 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 a
federal 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.
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 of agreement
between the City and Alameda County Transportation Commission applicable to Measure BB. Accordingly,
this report is not suitable for any other purpose.
Badawi & Associates
Certified Public Accountants
Berkeley, California
December 10, 2019
City of
Dublin
Dublin, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the fiscal year ending June 30, 2020
INDEPENDENT ACCOUNTANTS’ REPORT ON LIMITED PROCEDURES
REVIEW OF APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB
OF THE CALIFORNIA CONSTITUTION
To the Honorable Mayor and Members of City Council of the City of Dublin
Dublin, California
We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule
of the City of Dublin (City) for the fiscal year ending June 30, 2020. These procedures, which were agreed to
by the City and the League of California Cities (as presented in the publication entitled Agreed-upon
Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution),
were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIII-B of the
California Constitution. The City management is responsible for the Appropriations Limit Schedule. This
agreed-upon procedures engagement was conducted in accordance with attestation standards established
by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the
responsibility of those parties specified in this report. Consequently, we make no representation regarding
the sufficiency of the procedures described below either for the purpose for which this report has been
requested or any other purpose.
The procedures performed and our findings are described below:
1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the
fiscal year ending June 30, 2020, and determined that the limit and annual calculation factors were
adopted by resolution of City Council. We also determined that the population and inflation
options were selected by a recorded vote of City Council.
Findings: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total
adjustments, and agreed the resulting amount to the current year’s limit.
Findings: No exceptions were noted as a result of our procedures.
3. We agreed the current year information presented in the accompanying Appropriations Limit
Schedule to corresponding information in worksheets used by the City.
Findings: No exceptions were noted as a result of our procedures.
4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit
Schedule to the prior year appropriations limit adopted by the City Council during the prior year.
Findings: No exceptions were noted as a result of our procedures.
2
To the Honorable Mayor and Members of City Council
of the City of Dublin
Dublin, California
Page 2
We were not engaged to and did not conduct an examination, the objective of which would be the
expression of an opinion on the accompanying Appropriation Limit Schedule. Accordingly, we do not
express such an opinion. Had we performed additional procedures, other matters might have come to our
attention that would have been reported to you. No procedures have been performed with respect to the
determination of the appropriation limit for the base year, as defined by Article XIII-B of the California
Constitution.
This report is intended solely for the information and use of the City Council and management of the City
and is not intended to be and should not be used by anyone other than these specified parties.
Badawi and Associates
Certified Public Accountants
Berkeley, California
December 10, 2019
City of Dublin
Appropriations Limit Schedule
Amount Source
A. Appropriations limit for the year ended June 30, 2019 341,825,370$ Prior year resolution
B. Calculation Factors:
1. Population increase %1.0450 State Department of Finance
2. Inflation increase %1.0428 County of Alameda
3. Total adjustment factor % 1.0897 B1*B2
C. Annual Adjustment Increase 30,661,736 [(B3-1)A)]
D. Other Adjustments -
E. Total Adjustments 30,661,736 (C+D)
F. Appropriations limit for the year ending June 30, 2020 372,487,106$ (A+E)
For the fiscal year ending June 30, 2020
3
City of Dublin
Notes to Appropriations Limit Schedule
For the fiscal year ending June 30, 2019
4
1. PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California
governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes.
Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual
calculation of the appropriations limit is subject to a limited procedures review in connection with the
annual audit.
2. METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit
is required to be calculated based on the limit for the fiscal year 1986-1987, adjusted for the inflation and
population factors discussed in Notes 3 and 4 below.
3. INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage
change in the 4th quarter per capita personal income (which percentage is supplied by the State Department
of Finance), or the percentage change in the local assessment roll from the preceding year due to the change
of local nonresidential construction. The factor adopted by the City of Dublin for the fiscal year 2017-2019
represents the percentage change in the local assessment roll from the preceding year due to the change of
local nonresidential construction.
4. POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage
change of the jurisdiction’s own population, or the annual percentage change in population in the County
where the jurisdiction is located. The factor adopted by the City of Dublin for fiscal year 2017-2019
represents the annual percentage change in population for the City.
5. OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events
occur, such as the transfer of responsibility for municipal services, to, or from, another government agency
or private entity. There were no adjustments made for fiscal year ending June 30, 2020.