Auditors give TJPA unmodified opinion on FY2025 financial statements; emphasis of matter noted for new accounting standard

Michelle Walter, senior manager at audit firm Baker Tilly, told the Transbay Joint Powers Authority board on Dec. 11 that Baker Tilly had issued an unmodified opinion on the authority's fiscal year 2025 financial statements, meaning the auditors found the statements to be materially accurate and properly presented under government accounting standards.

Walter said the audit opinion included an "emphasis of matter" because the authority implemented a new governmental accounting standard related to compensated absences. "We have issued what's called an unmodified opinion on your audit," Walter said during the presentation.

The audit presentation summarized key balances and year-over-year changes. Walter reported the authority's net position totaled about $1,700,000,000 at year-end and that noncurrent assets declined by roughly $47,000,000, a shift driven by a combination of construction-in-progress adjustments and accumulated depreciation. Operating revenues were reported at about $14,300,000 and operating expenses at about $116,000,000; cash increased by about $19,000,000 in 2025 compared with using $6,000,000 in the prior year.

Walter also described the audit process and the separate narrative "reporting and insights" document auditors provide that includes required communications and management representation letters.

Directors thanked the audit team and staff for the work. No public comment was offered on the audit item at the meeting. The board proceeded to its next agenda item after the presentation.

The audit materials and the auditors' reporting document were included in the board packet; directors were invited to follow up with the auditors or TJPA staff for additional detail.