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Camino Real RMA accepts clean FY2024 audit; auditors report unmodified opinions and no findings
Summary
Auditors delivered an unmodified financial and single-audit opinion for fiscal year 2024 and the board voted to accept the audit; auditors noted a deficit net position tied to pledged future vehicle-registration revenues and disclosed two outstanding matters (a toll agreement and an active vendor bankruptcy) as notes.
The Camino Real Regional Mobility Authority board on Jan. 29 accepted the fiscal year 2024 audited financial report after auditors delivered unmodified opinions for both the financial statements and the single audit covering federal and state funds.
‘‘We have the fiscal year 2024 report prepared. We have an unmodified opinion, both for the financial audit as well as the single audit,’’ auditor Vanessa Alarcon told the board. She said the audit included no findings and a separate management letter contained no management comments; auditors discussed a few minor verbal items with staff that were being addressed.
Alarcon explained the authority’s deficit net position on the statement of net position results from the timing and structure of pledged revenues and obligations. ‘‘That deficit net position is because we've got committed pledged revenues from your vehicle registration bonds that will be received in future years to pay off the existing debt that's already on your balance sheet,’’ she said. The audit showed that the authority paid off the final of several loans during FY2024 and completed a refunding issuance that defeased a portion of 2014 bonds, producing net savings.
The audit report included two disclosed matters for which no accruals were made: a pending toll agreement (staff said the agreement must still be finalized to remove certain deferred amounts from the balance sheet) and an active legal matter involving a vendor bankruptcy related to a construction project. Auditors described those issues in the notes; Alarcon said the bankruptcy matter includes court proceedings and could require further action depending on the judge’s outcome.
Board action and context
Finance Director Robert Studer recommended accepting the audit. The board moved and accepted the audit by voice vote; the chair announced the motion carried. Board members praised the finance staff and the audit committee for the thorough review work leading up to the acceptance.
Why it matters
An unmodified opinion is the cleanest audit outcome and means auditors found the financial statements presented fairly in all material respects. The disclosure of the deficit net position is an accounting presentation tied to pledged revenues and debt timing rather than an operational cash shortfall, and auditors noted the authority’s pledged vehicle-registration receipts covered debt-service needs at the time of the report. The outstanding toll-agreement and bankruptcy items remain contingent and were disclosed rather than recorded as liabilities pending further legal or contractual resolution.
Ending
Staff said they will clear minor management items cited verbally with the auditor and will notify the board as the outstanding toll agreement and the vendor bankruptcy proceed toward resolution.
