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Budget Detail BUDGETComprehensive ## DETAnnualAIL Financial Report Operating Budget Fiscal Year ending June 30, 2014 Five-Year Capital Needs Assessment Fiscal Years ending June 30, 2014 through 2018 Oakland, California (A Component Unit of the City of Oakland) For the Years Ended June 30, 2013 and 2012 Port of Oakland Oakland, California (A Component Unit of the City of Oakland) Comprehensive Annual Financial Report For the Years Ended June 30, 2013 and 2012 Prepared by the Financial Services Division This page left intentionally blank. PORT OF OAKLAND (A Component Unit of the City of Oakland) COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Years Ended June 30, 2013 and 2012 Table of Contents Pages INTRODUCTORY SECTION Letter of Transmittal ................................................................................................................ i GFOA Certificate of Achievement for Excellence in Financial Reporting ........................... vii Budget Organization Chart .................................................................................................. viii Appointed Officials, Senior and Contributing Staff .............................................................. ix FINANCIAL SECTION Independent Auditors’ Report ................................................................................................... 1-2 Management’s Discussion and Analysis (Unaudited) ............................................................ 3-14 Financial Statements: Statements of Net Position ................................................................................................ 16-17 Statements of Revenues, Expenses and Changes in Net Position ..................................... 18-19 Statements of Cash Flows ................................................................................................. 20-21 Notes to Financial Statements ........................................................................................... 22-57 Required Supplementary Information (Unaudited): Schedule of Funding Progress - Other Postemployment Benefits ......................................... 59 STATISTICAL SECTION (Unaudited) Index to Statistical Section .................................................................................................... 61 Net Position by Components ................................................................................................. 62 Statements of Revenues, Expenses and Changes in Net Position .......................................... 63 Principal Revenue Sources and Airline Revenue per Enplaned Passenger ........................... 64 Aviation Statistics – South Airport ........................................................................................ 65 Top Ten Individual Sources of Aviation Revenue ................................................................ 66 Schedule of Airline Rates and Changes ................................................................................. 67 Principal Revenue Sources and Maritime Revenue per TEU ................................................ 68 Maritime Division – Container Trends .................................................................................. 69 Top Ten Individual Sources of Maritime Revenue by Alphabetical Order ........................... 70 Net Revenue Calculation For Debt Service Coverage ........................................................... 71 Debt Service Coverage .......................................................................................................... 72 Ratios of Debt Service ........................................................................................................... 73 Outstanding Debt by Debt Type ............................................................................................ 74 Demographic and Economic Statistics for the City of Oakland ............................................ 75 Principal Employers – FY 2012 vs. FY 2006 ........................................................................ 76 Actual Employee Count by Division ..................................................................................... 77 Capital Assets Information .................................................................................................... 78 This page left intentionally blank. INTRODUCTORY SECTION . Letter of Transmittal . GFOA Certificate of Achievement for Excellence in Financial Reporting . Budget Organization Chart . Appointed Officials, Senior Staff and Contributing Staff This page left intentionally blank. vii viii PORT OF OAKLAND APPOINTED OFFICIALS, SENIOR AND CONTRIBUTING STAFF For the Year Ended June 30, 2013 Board of Port Commissioners of the City of Oakland Gilda Gonzales, President James W. Head, First Vice- President Alan S. Yee, Second Vice-President Cestra Butner, Commissioner Earl S. Hamlin, Commissioner Bryan R. Parker, Commissioner Victor Uno, Commissioner Senior Staff Deborah Ale Flint, Acting Executive Director Arnel Atienza, Chief Audit Officer Jean Banker, Deputy Executive Director John T. Betterton, Secretary of the Board Chris Chan, Director of Engineering Denyce Holsey, Director of Administration Pamela Kershaw, Director of Commercial Real Estate Isaac Kos-Read, Director of External Affairs Sara Lee, Chief Financial Officer Kristi McKenney, Acting Director of Aviation Marsha Carpenter Peterson, Port Labor Advisor Ron Puccinelli, Chief Technology Officer Richard Sinkoff, Director of Environmental Programs and Planning Amy Tharpe, Director of Social Responsibility Danny Wan, Port Attorney Contributing Staff Julie Lam, Controller Angelica Avalos Leandro Denoga Alice Fan Katri Jones Saw May Khoo Betsy Kwok 530 Water Street Cecilia Ravare Oakland, California 94607 Stanley Tanaka Sandra Yee Phone: 510-627-1100 David Zolezzi Website: portofoakland.com ix This page left intentionally blank. x FINANCIAL SECTION . Independent Auditors’ Report . Management’s Discussion and Analysis (unaudited) . Basic Financial Statements . Required Supplementary Information (unaudited) This page left intentionally blank. Independent Auditors’ Report Board of Port Commissioners of the City of Oakland, San Francisco, California Report on the Financial Statements We have audited the accompanying financial statements of the Port of Oakland (Port), a component unit of the City of Oakland, California as of and for the years ended June 30, 2013 and 2012, and the related notes to the financial statements, as listed in the table of contents. 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 an opinion on these financial statements based on our audits. We conducted our audits 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 opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Port as of June 30, 2013 and 2012, and the changes in its financial position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. 1 Emphasis of Matter As discussed in Note 1, the financial statements present only the Port enterprise fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2013 and 2012, the changes in its financial position, or, where applicable, its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Also as described in Note 2 to the financial statements, effective July 1, 2011, the Port adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 62, Codification of Accounting and
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