FY 2023-24 North Los Angeles County Transportation Coalition

NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 (WITH COMPARATIVE TOTALS FOR 2023) NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Basic Financial Statements For the Fiscal Year Ended June 30, 2024 Table of Contents Independent Auditor’s Report ..................................................................................... 1 Management’s Discussion and Analysis (Unaudited) ................................................. 4 Basic Financial Statements: Statement of Net Position ..................................................................................... 7 Statement of Revenues, Expenses, and Changes in Net Position ....................... 8 Statement of Cash Flows ..................................................................................... 9 Notes to the Basic Financial Statements ............................................................ 10 PARTNERS COMMERCIAL ACCOUNTING & TAX SERVICES GOVERNMENTAL AUDIT SERVICES CRAIG A HARTZHEIM, CPA 8383 WILSHIRE BLVD., SUITE 800 5800 HANNUM AVE., SUITE E HADLEY Y HUI, CPA BEVERLY HILLS, CA 90211 CULVER CITY, CA 90230 ADAM V GUISE CPA TEL: 310.670.2745 TEL: 310.670.2745 TRAVIS J HOLE, CPA FAX: 310.670.1689 FAX: 310.670.1689 WILSON LAM, CPA www.mlhcpas.com www.mlhcpas.com Independent Auditor’s Report To the Governing Board North Los Angeles County Transportation Coalition Los Angeles, California Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of the North Los Angeles County Transportation Coalition (Authority), as of and for the fiscal year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Authority as of June 30, 2024, and the changes in financial position and cash flows for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion 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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management 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; and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 OFFICES: CULVER CITY ∙ SANTA MARIA MEMBER AMERICAN INSTITUTE OF C.P.A.’S ∙ CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS ∙ CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 Authority’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Report on Summarized Comparative Information The financial statements include partial prior-fiscal year comparative information. Such information does not include all of the information required to constitute a presentation in accordance with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Authority’s financial statements for the fiscal year ended June 30, 2023, from which such partial information was derived. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 4 through 6, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who 2 considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about 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 do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 21, 2025, on our consideration of the Authority’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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the effectiveness of the Authority’s 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 the Authority’s internal control over financial reporting and compliance. Moss, Levy & Hartzheim, LLP Culver City, California April 21, 2025 3 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Management’s Discussion and Analysis (Unaudited) June 30, 2024 Management's discussion and analysis (MD&A) of the North Los Angeles County Transportation Coalition (the Authority) provides a narrative overview of the Authority's financial activities for the fiscal year ended June 30, 2024. Please read it in conjunction with the accompanying financial statements, footnotes, and supplementary information. This discussion is intended to:  Assist the reader in understanding significant financial issues  Provide an overview of the Authority’s financial activities  Identify changes in the Authority’s financial position BACKGROUND The Authority was created on May 14, 2018, pursuant to the Government Code of the State of California under a Joint Powers Agreement between the City of Lancaster, the City of Palmdale, the City of Santa Clarita, and the County of Los Angeles (hereinafter referred to as the member agencies). The Authority is governed by a Governing Board made up of 12 voting members, comprised of three representatives from each of the member agencies. The purpose of the creation of the Authority is to provide a vehicle for the member agencies to coordinate regional and cooperative planning, primarily in the area of transportation and determining how to prioritize regional transportation projects and the allocation of public monies, including building a more connective transportation system between the member agencies. Such efforts will include the development of policies and strategies that directly lead to the implementation of the projects and programs that address critical north county transportation issues, promotion of economic development, and maximization of transportation funding opportunities for member jurisdictions. FINANCIAL HIGHLIGHTS  The Authority’s assets exceeded its liabilities as of June 30, 2024, by $162,891, compared to $123,212 as of June 30, 2023, an increase of $39,679.  Total operating revenues remained the same and operating expenses increased $6,600 from fiscal year 2022-23.  Total non-operating revenues totaled $5,795 for the fiscal year ended June 30, 2024, compared to $4,857 for the fiscal year ended June 30, 2023.  The Authority had no short-term or long-term debt.  The Authority had no capital assets. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the Authority’s audited financial statements, which are comprised of the 1) basic financial statements; and 2) notes to the basic financial statements. 4 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Management’s Discussion and Analysis (Unaudited) June 30, 2024 The Authority’s financial statements are prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. It is designed to provide readers with a broad overview of the Authority’s finances, in a manner similar to a private-sector business. Additional information on the Authority’s significant accounting policies can be found in Note 1 on pages 10 to 13 of this report.  The Statement of Net Position presents information on all of the Authority’s assets, liabilities, and resulting net position. Over time, an increase or decrease in net position may serve as a useful indicator of the Authority’s financial position.  The Statement of Revenues, Expenses, and Changes in Fund Net Position presents information showing how the Authority’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing or related cash flows. Thus, revenue and expenses are reported in these statements for some items that will result in cash flows in future periods.  The Statement of Cash Flows relates to the flows of cash and cash equivalents. Consequently, only transactions that affect the Authority’s cash accounts are recorded in these statements. A reconciliation is provided at the bottom of the Statement of Cash Flows to assist in the understanding of the difference between cash flows from operating activities and operating income or loss. Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the Authority’s financial statements. Notes to the financial statements are on pages 10 to 14. FINANCIAL ANALYSIS As of June 30, 2024, the Authority’s net position was $162,891. Revenues for the fiscal year ended June 30, 2024 consisted of member contributions, including from the County of Los Angeles (County), totaling $163,000, as well as interest income in the amount of $5,795. Total expenditures in the amount of $129,116 for the fiscal year ended June 30, 2024 consisted mainly of payments for County accounting and legal services, executive director charges, and miscellaneous operating expenses. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets As of June 30, 2024, the Authority had no capital assets. Debt Administration As of June 30, 2024, the Authority had no outstanding debt. 5 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Management’s Discussion and Analysis (Unaudited) June 30, 2024 ECONOMIC FACTORS Member agencies of the Authority decided to create a joint powers authority to assist with streamlining of transportation projects and voluntarily and cooperatively resolve differences in a more representative and formal structure. Such efforts are planned to include the development of policies and strategies that directly lead to the implementation of the projects and programs that address critical north county transportation issues, promote economic development, and maximize transportation funding opportunities for member jurisdictions. CONTACTING THE AUTHORITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens and other interested parties with a general overview of the Authority's finances and to demonstrate the Authority's accountability for the money it receives. If you have any questions about this report or need additional financial information, contact the County, Department of Auditor-Controller, 500 West Temple Street Room 525, Los Angeles, CA 90012. 6 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Statement of Net Position As of June 30, 2024 With Comparative amounts as of June 30, 2023 2024 2023 Assets Cash and Cash Equivalents (Note 2) $ 173,443 $ 136,643 Interest Receivable (Note 3) 1,872 1,519 Total assets $ 175,315 $ 138,162 Liabilities Accounts Payable $ 12,424 $ 14,950 Total Liabilities 12,424 14,950 Net Position (Note 1) Unrestricted 162,891 123,212 Total net position 162,891 123,212 Total Liabilities and Net Position $ 175,315 $ 138,162 See accompanying notes to the basic financial statements 7 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Statement of Revenues, Expenses, and Changes in Net Position For the Fiscal Year Ended June 30, 2024 With Comparative amounts for fiscal year ended June 30, 2023 2024 2023 Operating Revenues Other Governmental Agencies $ 163,000 $ 163,000 Total operating revenues 163,000 163,000 Operating Expenses Professional 124,215 120,527 Legal 4,901 1,989 Total operating expenses 129,116 122,516 Net operating income 33,884 40,484 Nonoperating Revenues Interest Income 5,795 4,857 Total non-operating revenues 5,795 4,857 Change in net position 39,679 45,341 Net Position, Beginning of Fiscal Year 123,212 77,871 Net Position, End of Fiscal Year $ 162,891 $ 123,212 See accompanying notes to the basic financial statements 8 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Statement of Cash Flows For the Fiscal Year Ended June 30, 2024 With Comparative amounts for fiscal year ended June 30, 2023 2024 2023 Cash Flows from Operating Activities Cash received from member agencies $ 163,000 $ 163,000 Cash paid to suppliers for goods and services (131,643) (117,986) Net cash provided by operating activities 31,357 45,014 Cash Flows from Investing Activities Interest Received 5,443 3,663 Net cash provided by investing activities 5,443 3,663 Net increase in cash and cash equivalents 36,800 48,677 Cash and cash equivalents, beginning of fiscal year 136,643 87,966 Cash and cash equivalents, end of fiscal year $ 173,443 $ 136,643 Reconciliation of Operating Income to Net Cash provided by Operating Activities Operating income $ 33,884 $ 40,484 Adjustments to reconcile operating income to net cash provided by operating activities Decrease (increase) in assets: Prepaid Expenses - 1,769 Increase (decrease) in liabilities: Accounts Payable (2,527) 2,761 Total adjustments (2,527) 4,530 Net cash provided by operating activities $ 31,357 $ 45,014 See accompanying notes to the basic financial statements 9 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Notes to the Basic Financial Statements June 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity: The North Los Angeles County Transportation Coalition (Authority) was created on May 14, 2018, pursuant to the Government Code of the State of California (the State) under a Joint Powers Agreement (JPA) between the City of Lancaster, the City of Palmdale, the City of Santa Clarita, and the County of Los Angeles (hereinafter referred to as the member agencies). The JPA designates the County of Los Angeles (County) Department of Auditor-Controller as the Authority’s fiscal agent. The Authority is governed by a Governing Board made up of 12 voting members, comprised of three representatives from each of the member agencies. The purpose of the creation of the Authority is to provide a vehicle for the member agencies to coordinate regional and cooperative planning, primarily in the area of transportation and determining how to prioritize regional transportation projects and the allocation of public monies, including building a more connective transportation system between the member agencies. Such efforts will include the development of policies and strategies that directly lead to the implementation of the projects and programs that address critical north county transportation issues, promote economic development, and maximize transportation funding opportunities for member jurisdictions. Financial statement presentation: The Authority’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The Authority is accounted for as an enterprise fund (proprietary fund type). A fund is an accounting entity with a self-balancing set of accounts established to record the financial position and results of operations of a specific governmental activity. The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to basic resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and are substantially financed by revenues derived from user charges. The Authority utilizes the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when the liability is incurred. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the Authority are contributions from member agencies. When both restricted and unrestricted resources are available for use, it is the Authority’s policy to use restricted resources first, then unrestricted resources as they are needed. Cash and cash equivalents: Cash and cash equivalents represent funds held in the County Treasury Pool. Cash equivalents are defined as short-term, highly liquid investments that are both readily convertible to known amounts of cash or so near their maturity that they present insignificant risk of changes in value 10 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Notes to the Basic Financial Statements June 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and cash equivalents (Continued): because of changes in interest rates and have an original maturity of three months or less. For purposes of the statement of cash flows, cash represents balances that can be readily withdrawn without substantial notice or penalty. Interest receivable: Interest receivable comprises of undistributed interest earnings on the Authority’s Cash and Cash Equivalents held in the County Treasury Pool. Operating revenues and operating expenses: Operating revenues primarily consist of membership contributions from the member agencies. Member agencies are responsible for the annual payment of dues for each fiscal year in the amounts budgeted and adopted by the Governing Board for the operating costs of the Authority. An annual dues assessment is issued to member agencies and are due and payable in July of each calendar year. Operating expenses represent the costs of the operations of the Authority during the fiscal year. Revenues outside the normal course of operations are recorded as nonoperating revenues in the statement of revenues, expenses, and changes in net position. Nonoperating revenues consist primarily of interest income. Taxation: As a governmental JPA, the Authority is not subject to income or franchise taxation by federal or state authorities. Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates and assumptions made by management include, but are not limited to, contingent assets and liabilities. Net position: The Authority’s financial statements are presented in accordance with the provisions of GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments and GASB Statement No. 63 – Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Statement No. 34 established standards for external financial reporting for all state and local governmental entities and Statement No. 63 established standards for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position. The net position is required to classify into three components – net investment in capital assets; restricted; and unrestricted. 11 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Notes to the Basic Financial Statements June 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Net position (Continued): These classifications are defined as follows: Net investment in capital assets – This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and is reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at fiscal year-end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of net investment in capital assets. Rather, that portion of the debt is included in the same net position component as the unspent proceeds. As of June 30, 2024, the Authority has no capital assets and no net investment in capital assets net position. Restricted net position – This component of net position represents restricted assets net of liabilities that relate to those specific restricted assets. A restricted asset is an asset for which constraints have been placed on the asset’s use by creditors, contributors, laws, or regulations of other governments, or as a consequence of a restriction established by the reporting government’s own governing body at the time a particular fee, charge, levy, or assessment was approved. These restrictions must be narrower than the general purposes for which the reporting government can use its resources. As of June 30, 2024, the Authority had no restricted net position. Unrestricted net position – This component of net position represents net position of the Authority that does not meet the definition of “restricted” or “net investment in capital assets.” When an expenditure is incurred for which both restricted and unrestricted net position is available, the Authority considers restricted funds to have been spent first. As of June 30, 2024, the Authority had $162,891 in unrestricted net position. New Accounting Pronouncements: The following GASB Statements have been implemented in the current basic financial statements. GASB Statement No. 99 – Statement No. 99, “Omnibus 2022”, enhances comparability in accounting and financial reporting and improves the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. GASB Statement No. 99, paragraph 4-10, the requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53, are effective for reporting periods beginning after June 15, 2023. This statement did not have a material impact on the financial statements. GASB Statement No. 100 – Statement No. 100, “Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62” enhances accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) 12 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Notes to the Basic Financial Statements June 30, 2024 NOTE 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) New Accounting Pronouncements (Continued): Changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements. This statement did not have a material impact on the financial statements. NOTE 2 CASH AND CASH EQUIVALENTS In accordance with the California Government Code, cash balances of the Authority are deposited with and pooled and invested by the County Treasurer and Tax Collector (TTC) for the purpose of increasing interest earnings through investment activities. Interest earned on pooled investments is deposited to participating funds based upon each fund’s average daily balance during the allocation period. California Government Code Sections 53601 and 53635 authorize the County Treasurer to invest the External Investment Pool (Pool) and Specific Purpose Investment funds in obligations of the United States Treasury, federal agencies, municipalities, asset-backed securities, bankers’ acceptances, commercial paper, negotiable certificates of deposit, medium-term notes, corporate notes, repurchase agreements, reverse repurchase agreements, forwards, futures, options, shares of beneficial interest of a JPA that invests in authorized securities, shares of beneficial interest issued by diversified management companies known as money market mutual funds registered with the Securities and Exchange Commission, securities lending agreements, the State of California’s Local Agency Investment Fund, and supranational institutions. California Government Code Section 53534 authorizes the Treasurer to enter into interest rate swap agreements. However, these agreements should only be used in conjunction with the sale of the bonds approved by the County Board of Supervisors (Board). As permitted by the California Government Code, the Treasurer developed, and the Board adopted, an Investment Policy that further defines and restricts the limits within which the Treasurer may invest. The investments are managed by the Treasurer, which reports investment activity to the Board on a monthly basis. In addition, the Treasurer's investment activity is subject to an annual investment policy review, compliance oversight, quarterly financial review, and annual financial reporting. The Treasurer also maintains Other Specific Investments, which are invested pursuant to Section 1300.76.1, Title 28, California Code of Regulations. The County has not provided nor obtained any legally binding guarantees during the fiscal year ended June 30, 2024, to support the value of shares in the Pool. Investments are stated at fair value and are valued on a monthly basis. The Treasurer categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. Securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Securities classified in Level 2 of the fair value hierarchy are valued using other observable inputs such as matrix pricing techniques or based on quoted prices for assets in markets that are not active. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Level 3 inputs are significant 13 NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION Notes to the Basic Financial Statements June 30, 2024 NOTE 2 CASH AND CASH EQUIVALENTS (Continued) unobservable inputs. Securities classified in Level 3 are valued using the income approach such as discounted cash flow techniques. Investments in an external government investment pool are not subject to reporting within the level hierarchy. See the County’s Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024, for the disclosures related to cash and investments and the related interest rate risk, credit rate risk, custodial risk, and concentration risk. Funds deposited in the County Treasury Pool amounted to $173,443 as of June 30, 2024. This amount represents less than 0.1% of the total balance of the County Treasury Pool. NOTE 3 RELATED PARTY TRANSACTIONS The Authority’s cash and investments are pooled and invested by the County Treasurer and Tax Collector. For the fiscal year ended June 30, 2024, interest income amounted to $5,795 and interest receivable amounted to $1,872. The County maintains the books and records of the Authority and provides other administrative and support services such as legal counsel. Total fees charged by the County during the fiscal year ending June 30, 2024, totaled $24,416. 14