SLED Opportunity · CALIFORNIA · SACRAMENTO AREA COUNCIL OF GOVERNMENTS
AI Summary
CARTA seeks Certified Public Accountants for a 3-year audit services contract with a 2-year extension option, covering fiscal years ending June 30, 2024 and 2025, following US auditing standards.
The Capital Area Regional Tolling Authority (CARTA) is soliciting proposals from Certified Public Accountants to perform auditing services. The audit services will be over a three-year period, with an optional two-year extension. The first year of auditing will cover the fiscal years ending on June 30, 2024, and 2025, respectively. These services are to be performed in accordance with auditing standards generally accepted in the United States of America, the standards set forth for financial audits contained in Government Auditing Standards and the U.S. Office of Management and Budget (OMB) Super Circular.
In January of 2024 Sacramento Area Council of Governments (SACOG), Yolo Transportation District (YoloTD), and the California Department of Transportation (Caltrans), created a joint powers authority (CARTA) to serve as tolling authority for the Sacramento region. While SACOG, YoloTD, and Caltrans are CARTA's initial members (and have voting seats on its board), CARTA was designed to expand membership to Sacramento Transportation Authority (STA), Placer County Transportation Planning Agency (PCTPA), and El Dorado County Transportation Commission (EDCTC) as the toll network grows. Each of these three (3) agencies has a non-voting seat on the CARTA board. All six (6) agencies actively participate in the CARTA Technical Advisory Group (TAG), an interagency executive group that oversees and guides the development of CARTA’s work. For more information about CARTA, please visit our website at https://carta.ca.gov.
To date, CARTA’s operations have been entirely funded by $2.6 million in loans from SACOG, along with a federal pass-through grant. The Yolo 80 Express Lanes is CARTA’s first toll facility and is scheduled to begin collecting toll revenue in summer 2028. Once the Yolo 80 Managed Lanes project opens to revenue service, traffic and revenue studies show that the project is forecasted to cover all operating costs. The Yolo 80 grant funds, including $86 million in federal Infrastructure for Rebuilding America (INFRA) and $105 million in state Trade Corridor Enhancement Program (TCEP), are held by Caltrans. CARTA is in the process of procuring a Toll System Integrator Services (TSI). The TSI provider will operate and maintain the toll systems. The anticipated full-service contract will include design, install, and maintain toll infrastructure, and operate the system to collect and process toll transactions on CARTA's behalf.
CARTA is currently being managed by staff at the Sacramento Area Council of Governments, Yolo Transportation District, and Caltrans District 3, with SACOG providing administrative and finance support. CARTA anticipates hiring an Executive Director by July 1, 2027.
Please see the attached Attendees and Questions and Answers from the Pre-Proposal Meeting.
Proposed team’s understanding of CARTA's operations and fund sources.
Proposed approach to meeting the Scope of Work outlined in this RFP, including technical approach and project schedule.
The qualifications of proposed key personnel, the staffing resources proposed, and the proposed team's experience doing similar work
The value the proposed team brings to CARTA and the allocation of the cost proposal
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The transmittal letter must include:
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Proposers must review CARTA's Sample Agreement in this section and upload a statement that they accept CARTA's Standard Terms and Conditions with or without qualifications.
Proposer must upload any exceptions to terms and conditions to this section of the proposal submission for consideration. Exceptions must include the:
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Consultant Qualifications
The RFP response shall provide a description of the firm and a statement of firm qualifications and firm experience focusing on the last five years. The response shall include the firm’s overall management structure, and the specific organization of the proposed team (and if subcontractors are being utilized, their interaction with the firm proposing on this work). Additionally, the response must also identify by name all personnel that would perform work and their proposed roles. For junior personnel, this is not required.
The description of individual qualifications must include a summary of the previous experience with local government agencies relative to the legal issues and practices described above.
Local Government Agency Client References
Please provide two primary references from another local government agency of the audit partner and manager in each audit service of work covered by the proposal, and two primary references for each audit partner and manager who will provide work for CARTA. Please include contact information and permission to contact those references. Additional references may be provided, but the two primary references should be clearly identified.
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Contract Scope of Work
Proposer must complete a Standard Contract Scope of Work form summarizes/repackages much of the information from the Proposal into a standardized format for inclusion in an awarded contract. The form must be uploaded in a non-password protected file saved in Microsoft Word format.
Standard Task Based Budget Form
Proposer must complete the Standard Task Based Budget Form as part of the cost proposal.
The cost proposal shall describe both the total and the detailed price for which the consultant will commit to complete the total scope of work and all deliverables. The cost proposal detail shall describe estimated costs (only the total amount is a binding offer) for each professional’s time, for the completion of each proposed task, for travel and per-diem (if applicable), and for materials and supplies. Cost proposals must be submitted on the Standard Task-Based Budget form. The cost proposal must include subcontractor costs by task.
Consultant Certification of Contract Costs and Financial Management System
Proposer and any proposed subcontractors must complete the certification form in this section, or provide a letter from cognizant agency approving the consultant’s indirect rate for the consultant /subcontractor.
Failure to provide adequate cost data may result in CARTA deeming the proposal unresponsive.
Proposers must complete and upload the Consultant and Subcontractor Information form.
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Proposed Subcontractor Letters
If a subcontractor will be used, the proposer must include a letter from the subcontractor committing to perform at least the work shown for subcontractor professional in the Staffing Resource Matrix mentioned above.
Conflict of Interest Statements
Proposed subcontractor(s) proposals must disclose to CARTA any actual, apparent, or potential conflicts of interest that may exist relative to the services to be provided under Agreement for consultant services to be awarded pursuant to this RFP.
If the consultant or firm has no conflict of interest, a statement to that effect shall be included in the proposal.
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Proposers must include a descripotion of the Consultant’s Affirmative Action (AA) program, if required pursuant to the equal employment opportunity requirements of the U.S. Department of Labor Regulations (41 CFR Part 60, et seq.). These regulations require certain contractors to develop and maintain affirmative action programs, including service contractors (non-construction) with 50 or more employees and a federally assisted contract of $50,000 or more.
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If CARTA issues any Addenda for this solicitation, upload forms or responses in this section.
Enter the full cost of proposal for the contract term.
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Is this Project DLAE Funded?
Please enter the firm offer period you want for this solicitation (defaulted to 60 days here), so i.e. "sixty (60)"
Please enter the date which you want to be included in the solicitation as the contract execution date (i.e. "January 25, 2020")
For projects funded through Caltrans’ Division of Local Assistance, please contact the Procurement Officer to obtain the appropriate percentage and insert in the blank below (10.73% as of 2015-2016) - (i.e. "10.73").
For projects funded directly through FTA, use SACOGs established DBE Goal of 6.82%
Q (No subject): Could you provide a copy of the most recent Annual Financial Report and most recent Single Audit Report, if applicable?
A: Not applicable. CARTA is a newly established Joint Powers Authority and has not yet had an Annual Financial Report or Single Audit Report prepared. This RFP represents the first engagement for audit services.
Q (No subject): Can you provide clarification on the licensing requirements for out-of-state CPA firms submitting a proposal?
A: Out-of-state CPA firms submitting a proposal must be registered with the California Board of Accountancy (CBA) as an Out-of-State Firm Registrant prior to performing audit services for a California-headquartered entity. Registration requires completion of the CBA's Out-of-State Registration Form. Out-of-state firms should also ensure that their individual CPAs meet California's licensing requirements. For additional details, please refer to the CBA website at www.dca.ca.gov/cba.
Q (No subject): Can you provide information regarding the prior year’s auditor fees and/or the number of hours incurred to complete the audit?
A: CARTA is a relatively new Joint Powers Authority that adopted its bylaws in February 2024 and began operations in fiscal year 2024-2025. As such, there has been no prior financial audit performed for CARTA, and no prior auditor fees or hours are available for reference.
Q (No subject): Do you expect to receive and expend any federal grants of more than $1,000,000 during Fiscal Year 2025?
A: CARTA does not anticipate receiving and expending federal grants of more than $1,000,000 during fiscal year 2024-2025. CARTA did receive a Caltrans Sustainable Transportation Planning Grant of $500,000 in FY 2025-2026, which is passed through SACOG.
Q (No subject): Were there were any disagreements with the prior auditor related to accounting principles, proposed adjustments, audit scope, audit procedures, or other significant matters?
A: Not applicable. CARTA has not had a prior audit. CARTA is a new entity that adopted its bylaws in February 2024 and began operations in fiscal year 2024-2025.
Q (No subject): Were there any material audit adjustments identified during the prior year’s audit?
A: Not applicable. CARTA has not had a prior year's audit, as the organization is newly established and this RFP represents the first engagement for audit services.
Q (No subject): Are there any anticipated changes in operations, major capital projects, or accounting systems in the upcoming fiscal year?
A: Yes. CARTA anticipates several changes over the next few fiscal years, including: (1) hiring a full-time Executive Director beginning July 2026; (2) transitioning toll program management to a new consultant (Kimley-Horn); (3) continued development of the Yolo 80 Express Lanes project, with construction underway and expected completion in 2027-2028; (4) establishment of a back-office system and customer service center partnership with Transportation Corridor Agencies (TCA); and (5) anticipated growth in operational expenditures as CARTA moves toward toll revenue service in 2028.
Q (No subject): 1. Has there been any turnover in management during the past year? 2. Has there been any turnover in accounting staff during the past year? 3. What accounting software do you use? Any plans for change? 4. How many journal entries were proposed by the auditor in the prior year? 5. Are any management letter comments outstanding from the prior year? 6. May we receive a copy of last year's management letter? 7. How many major programs are subject to a Single Audit? 8. Any known or suspected fraud? 9. When will the books be ready for the audit? 10. Are financial records available electronically? 11. Is remote auditing acceptable? 12. Who prepares the financials? 13. Were there any significant transactions (e.g., bond issuance, leases) during the year? 14. Significant changes to operations or funding sources? 15. Significant construction or capital projects? 16. Any audits or inspections by regulatory agencies? 17. Any changes to the governance structure of CARTA? 18. Is the incumbent auditor invited to bid? 19. What were the audit fees for the prior year? 20. May we receive a copy of your most recent audit report?
A: 1. Yes. CARTA is transitioning its interim executive director role to a Kimley-Horn project manager and is in the process of hiring a full-time Executive Director starting July 2026. 2. CARTA does not have its own dedicated accounting staff or employees. SACOG provides administrative and financial support as CARTA's designated administering agency. 3. CARTA's accounting is currently managed through SACOG's financial systems. Any plans for change would be determined as CARTA transitions to more independent operations. 4. Not applicable. CARTA has not had a prior audit. 5. Not applicable. No prior audit has been performed, and no management letter has been issued. 6. Not applicable. No prior audit or management letter exists. 7. CARTA does not currently anticipate any major programs subject to a Single Audit. While there is one pass-through federal grant, it does not exceed the threshold for a single audit. 8. No known or suspected fraud. 9. SACOG finance staff anticipates having the trial balance finalized by mid-August 2026. An interim audit may begin after contract execution, and the final audit report is desired by December 2026. Specific timing will be coordinated with the selected audit firm. 10. Yes. Financial records are available electronically. 11. Yes. CARTA is open to remote auditing. 12. SACOG staff currently prepares CARTA's financial statements, as SACOG serves as CARTA's administering agency. Loretta Su, SACOG Finance Director, is the main contact for the audit. 13. CARTA has entered into several significant agreements, including loans from SACOG totaling $2.6 million and new loan agreement with member agency to support CARTA operations through 2028 (with debt service payments deferred until 2030, consisting of fixed amounts and a balloon payment at the end), a toll program management contract with Kimley-Horn (up to $5 million), and an interagency agreement with Transportation Corridor Agencies (TCA) for back-office services. Additionally, CARTA is in the process of procuring a Toll System Integrator Services (TSI). The TSI provider will operate and maintain the toll systems. The anticipated full-service contract will include design, install, and maintain toll infrastructure, and operate the system to collect and process toll transactions on CARTA's behalf. 14. Yes. CARTA is transitioning from a start-up phase to pre-revenue operations, with changes in staffing, consultant support, and toll system development. Revenue collection via tolls is anticipated to begin summer 2028. 15. Yes. The Yolo 80 Express Lanes project is under construction, representing a significant capital project within the corridor. 16. No audits or inspections by regulatory agencies are known at this time. CARTA did receive approval of its AB 194 Toll Facility Application from the California Transportation Commission in February 2025. 17. In early 2024, Sacramento Area Council of Governments (SACOG), Yolo Transportation District (YoloTD), and the California Department of Transportation (Caltrans) established a joint powers authority (CARTA), with bylaws adopted in February 2024, to serve as tolling authority for the Sacramento region. While SACOG, YoloTD, and Caltrans are CARTA's initial members (and have voting seats on its board), CARTA was designed to expand membership to Sacramento Transportation Authority (STA), Placer County Transportation Planning Agency (PCTPA), and El Dorado County Transportation Commission (EDCTC) as the toll network grows. Each of these three (3) agencies has a non-voting seat on the CARTA board. There have been no changes to the governance since February 2024. 18. There is no incumbent auditor. This is the first audit engagement for CARTA. 19. Not applicable. No prior audit has been performed. 20. Not applicable. No prior audit report exists.
Q (No subject): Can you please clarify the first-year audit request. Are you looking for separate audits of 2024 and 2025, or are you looking for an audit that covers the period “from inception to 6/30/2025”?
A: The first-year audit engagement will cover two fiscal years: FY 2024-2025 (ending June 30, 2025) and FY 2025-2026 (ending June 30, 2026). CARTA adopted its bylaws in February 2024 and began operations in FY 2024-2025. The audit is not intended as a single "from inception" engagement but rather as separate audits for each fiscal year. Given CARTA's recent inception, proposers should be prepared for a limited scope of activity in FY 2024-2025.
Q (No subject): How many and what types of funds are included in the financial reporting entity?
A: CARTA operates as a single Enterprise Fund. As a Joint Powers Authority focused on the development and operation of toll facilities, CARTA's financial reporting entity consists of one business-type activity fund. There are no fiduciary funds or governmental funds at this time.
Q (No subject): What were the primary funding sources in 2024 and 2025, and what were the primary expenses?
A: CARTA's primary funding sources in FY 2024-2025 and FY 2025-2026 have been loans from SACOG (totaling $2.6 million). Primary expenses include administration, program management and policy consulting, toll program management consulting (HNTB, transitioning to Kimley-Horn), legal services, insurance, and community engagement. CARTA has no employees; it has two consultant contracts and 11 on-call consultants, with SACOG and other partners providing operations and administrative support.
Q (No subject): How many transactions occurred in 2024 and 2025? How many transactions are expected to occur in the future once the toll road is operational?
A: In fiscal year 2024-2025, CARTA had approximately 320 total transactions, including vendor invoices and board-related payments. In FY 2025-2026, approximately 230 transactions have been recorded to date. The number of transactions is expected to increase significantly once the Yolo 80 Express Lanes become operational (anticipated summer 2028). At that point, the Toll System Integrator (TSI) will collect roadside toll transactions and TCA will manage back-office system (BOS) operations and the customer service center (CSC), sending aggregate billing to CARTA. CARTA will process toll revenues, manage vendor payments, and service debt.
Q (No subject): Were their expenditures of federal grants exceeding $750,000 in 2024 and 2025? If so, what federal programs (name, ALN), and how much?
A: CARTA has not had expenditures of federal grants exceeding $750,000 in FY 2024-2025. CARTA did receive a Caltrans Sustainable Transportation Planning Grant of $500,000 in FY 2025-2026, which is passed through SACOG. Accordingly, expenditures of federal grants have not exceeded $750,000 in either fiscal year.
Q (No subject): Do you anticipate federal grants in future years? If so, how many?
A: CARTA may pursue federal grants in future years to support toll facility development and operations. However, the timing and number of future federal grants is uncertain at this time. CARTA's Yolo 80 project has received federal INFRA grant funding through Caltrans as the project sponsor, but those funds are administered by Caltrans, not directly by CARTA. Please include Single Audit services as an optional item. This will allow CARTA to add the service if it becomes required due to federal funding.
Q (No subject): What are the estimated annual revenues from tolls, once the toll road is fully operational in 2028?
A: Estimated annual toll revenues from the Yolo 80 Express Lanes are subject to traffic and revenue study projections. The Yolo 80 project is expected to open for revenue service in summer 2028. Specific revenue projections are currently being refined through traffic and revenue studies. CARTA's financial forecasts indicate that toll revenues are expected to cover all operating costs once the facility is open. Detailed revenue estimates will be available upon request and are subject to the final toll rate structure and traffic conditions.
Q (No subject): What is your budget for the annual audit?
A: CARTA does not have a specific budget allocated for audit services. CARTA's FY 2025-2026 total operating budget is approximately $2 million. The audit cost will be determined based on the proposals received and the number of transactions. For reference, CARTA is significantly smaller than SACOG in terms of operations, with approximately 320 transactions in FY 2024-2025. SACOG is paying approximately $60K-$65K for the financial and single audit for two federal programs. CARTA is committed to securing quality audit services at a reasonable cost. CARTA is open to negotiating option year pricing given the unknowns associated with toll revenue operations beginning in FY 2028-2029.
Q (No subject): Can the audits be conducted remotely, using a hybrid model, or in-person full-time? Is CARTA open to audits being performed remotely?
A: Yes, CARTA is open to audits being performed remotely. A hybrid model (combination of remote and limited in-person) is also acceptable. CARTA's financial records are maintained electronically, and supporting documentation is available in electronic format, which facilitates remote audit work.
Q (No subject): Is there anything specifically that you are looking for in a potential professional services firm?
A: CARTA is looking for a firm with demonstrated experience in auditing governmental entities, particularly Joint Powers Authorities and/or transportation agencies. Experience with Government Auditing Standards, the OMB Super Circular (Uniform Guidance), and enterprise fund accounting is highly valued. Familiarity with start-up governmental entities and toll/transportation authorities is a plus. CARTA also values firms with strong communication skills and the ability to provide practical guidance on internal control development as CARTA continues to build its organizational infrastructure.
Q (No subject): When will trial balances typically be available? What is the desired timeline for the audits?
A: SACOG finance staff anticipates having the trial balance finalized by mid-August 2026. An interim audit may begin after the execution of the contract, with final audit reports no later than December 2026. The specific audit schedule will be coordinated with the selected firm following contract execution.
Q (No subject): Is most of the supporting documentation maintained electronically (e.g. PDF), such as checks, vendor invoices, cash receipts, timecards, personnel files?
A: Yes. The majority of CARTA's supporting documentation is maintained electronically (e.g., PDF format), including vendor invoices, contracts, board resolutions, and financial records. As SACOG currently provides administrative and financial support to CARTA, records are maintained within SACOG's electronic systems.
Q (No subject): Does CARTA use service organizations? Examples include payroll processors, workers’ compensation or medical claims processors, hosted data centers, cloud service providers, and managed security providers. If so, approximately how many and for which transaction cycles?
A: Yes. CARTA currently uses service organizations in the following areas: (1) SACOG provides administrative and financial support as CARTA's administering agency (note: CARTA currently has no employees, so there is no payroll processing); (2) Transportation Corridor Agencies (TCA) has been selected to provide back-office system (BOS) and customer service center (CSC) services for toll operations; and (3) Kimley-Horn provides toll program management consulting services. Additionally, CARTA has 11 on-call consultants and is in the process of procuring a Toll System Integrator (TSI) to design, install, and maintain toll infrastructure, and operate the system to collect and process toll transactions on CARTA's behalf.
Q (No subject): If issued as other than an addendum, could you please provide a copy of any addendum questions response issued in connection with the pre-proposal conference discussion?
A: All questions and responses, including any addenda issued in connection with the pre-proposal conference, are being provided through this Q&A document. Any additional addenda or notices will be posted on the SACOG procurement portal. Respondents are encouraged to monitor the portal for updates.
Q (No subject): Does the Authority anticipate requiring a Single Audit for the first year of the contract?
A: CARTA does not currently anticipate requiring a Single Audit for the first year of the contract (covering FY 2024-2025 and FY 2025-2026). CARTA does not currently receive federal funds directly, and federal expenditures have not met the $750,000 threshold requiring a Single Audit. However, if CARTA receives and expends federal awards exceeding $750,000 in a given fiscal year, a Single Audit would be required. Please include Single Audit services as an optional item. This will allow CARTA to add the service if it becomes required due to federal funding.
Q (No subject): Does the Authority desire comparative financial statements? (e.g. for FY 2024 and FY 2025
A: Yes. CARTA desires comparative financial statements for FY 2024-2025 and FY 2025-2026, as the first-year audit engagement covers both fiscal years. Proposers should include the preparation of comparative financial statements in their scope and pricing.
Q (No subject): Regarding the term of the audit services, the RFP specifies that term is to be a three-year period, with optional two-year extension and that the first year of the audit will cover both FY 2024 and FY 2025. Since there was no audit for FY 2024, is this therefore to mean that the audited fiscal years will be 2024, 2025 (collectively, year 1), then 2026, 2027, plus 2028 and 2029 as the optional years? Please verify.
A: Yes, the first year of the three-year contract term will cover two fiscal years: FY 2024-2025 (ending June 30, 2025) and FY 2025-2026 (ending June 30, 2026). The full engagement structure is as follows: Contract Year 1 – audit of FY 2024-2025 and FY 2025-2026; Contract Year 2 – audit of FY 2026-2027; Contract Year 3 – audit of FY 2027-2028. The optional two-year extension covers: Option Year 1 – audit of FY 2028-2029; Option Year 2 – audit of FY 2029-2030. CARTA is open to negotiating option year pricing given the unknowns associated with toll revenue operations beginning in FY 2028-2029.
Q (No subject): To assist us in our understanding of the financials to be audited, could you provide a copy of your unaudited financials or an unaudited trial balance for years ended 6/30/2024 and 6/30/2025, respectively?
A: CARTA adopted its bylaws in February 2024 and began operations in FY 2024-2025. As such, there is no fiscal year ending June 30, 2024, to report on. CARTA will make available unaudited financial statements and/or trial balances for FY 2024-2025 (ending June 30, 2025) and FY 2025-2026 (ending June 30, 2026) to the selected audit firm upon contract execution. SACOG finance staff anticipates having the trial balance finalized by mid-August 2026. Since CARTA is a relatively new Joint Powers Authority that adopted its bylaws in February 2024 and began operations in fiscal year 2024-2025, CARTA's financial statements will primarily reflect pre-revenue operational expenses, consulting costs, loan proceeds, and grant reimbursements. Quarterly financial reports are available on CARTA's website as part of board meeting materials. Refer to Question #12 and #29 for more information regarding number and type of transactions.
Q (Financial Reporting & Operations): Could you describe CARTA’s current accounting structure and financial systems, including any ERP or accounting platforms in use?
A: CARTA's accounting and financial administration is currently provided by SACOG staff, as SACOG serves as CARTA's designated administering agency. CARTA utilizes SACOG's existing financial systems and accounting platforms for budgeting, accounts payable, general ledger, and financial reporting. CARTA does not currently operate its own independent ERP or accounting system. As CARTA matures and hires a full-time Executive Director (anticipated July 2026), the organization may evaluate whether to transition to its own financial systems or continue leveraging SACOG's infrastructure.
Q (Financial Reporting & Operations): How many business-type and fiduciary activities roll into the CARTA Enterprise Fund for audit purposes?
A: CARTA operates as a single Enterprise Fund for audit purposes. There are currently no separate business-type or fiduciary activities that roll into the fund. All of CARTA's financial activity—including administration, toll program development, and consulting services—is accounted for within this single enterprise fund.
Q (Financial Reporting & Operations): What is the expected transaction volume for the fiscal years covered by this engagement?
A: Transaction volume during the engagement period is relatively low in the early years. In FY 2024-2025, CARTA had approximately 320 total transactions (vendor invoices and board payments). In FY 2025-2026, approximately 230 transactions have been recorded to date. Financial activity consists primarily of consulting contracts, loan proceeds, grant reimbursements, and administrative expenses. Transaction volume is expected to increase significantly beginning in FY 2028-2029 when the Yolo 80 Express Lanes open for revenue service. At that point, the Toll System Integrator (TSI) will collect roadside toll transactions, TCA will manage back-office operations and the customer service center, and CARTA will process aggregate toll revenues, vendor payments, and other transactions.
Q (Audit Engagement): Who will be the primary point of contact for finance and audit coordination?
A: The primary point of contact for finance and audit coordination is Loretta Su, Finance Director of SACOG, who currently provides financial administration for CARTA. As CARTA hires its Executive Director (anticipated July 2026), the point of contact may transition to CARTA's own staff. The selected firm will be introduced to the appropriate contacts at the start of the engagement.
Q (Audit Engagement): Given that SACOG, YoloTD, and Caltrans currently provide administrative, financial, and operational support to CARTA, are CARTA’s accounting records fully centralized within SACOG, or will the audit team need to obtain records and supporting documentation from multiple agencies? If multiple entities maintain components of CARTA’s financial activity, can you clarify which types of records or processes are held by each organization?
A: The records are between CARTA and SACOG, and the role of Caltrans and YoloTD is not directly related to the current or future financial management of CARTA. The audit team is primarily interact with SACOG/CARTA staff for financial records, general ledger data, trial balances, accounts payable, and other financial documentation. TCA will maintain back-office records and TSI will maintain customer service records and toll revenue records once toll operations begin.
Q (Single Audit): Do you anticipate meeting the federal expenditure threshold requiring a Single Audit for fiscal year 2024, 2025, or 2026?
A: CARTA does not anticipate meeting the federal expenditure threshold requiring a Single Audit for fiscal years 2024, 2025, or 2026. CARTA does not currently receive federal funds directly. Federal funds for the Yolo 80 project (e.g., INFRA grants) are administered by Caltrans as the project sponsor and are not currently flowing through CARTA's financial statements. If this changes in the future, CARTA will notify the selected audit firm.
Q (Single Audit): Will Caltrans continue holding and administering the federal funds through the audit period, or do you anticipate CARTA beginning direct draws?
A: Caltrans, as the project sponsor for the Yolo 80 Express Lanes, currently holds and administers the federal funds (e.g., INFRA grants and TCEP funding) for the project. CARTA does not currently anticipate beginning direct draws of federal funds during the audit period. However, as CARTA's operations mature and additional corridors are developed, the arrangement may evolve. Any changes to the federal funding structure will be communicated to the selected audit firm.
Q (Tolling System Implementation): When do you anticipate tolling activities beginning to appear in CARTA’s financial statements?
A: Tolling activities are anticipated to begin appearing in CARTA's financial statements in fiscal year 2028-2029 (FY ending June 30, 2029), coinciding with the expected opening of the Yolo 80 Express Lanes for revenue service in summer 2028. Prior to that, CARTA's financial statements will primarily reflect pre-revenue operational expenses, consulting costs, loan proceeds, and grant reimbursements related to toll system development.
Q (Internal Controls & Governance): Has CARTA documented its internal control framework—including IT controls—or is this still under development?
A: CARTA's internal control framework is still under development. As a newly established JPA, CARTA has been relying on SACOG's existing internal control and IT control framework for its financial administration. As CARTA transitions to more independent operations—including hiring an Executive Director and establishing its own toll system operations—the organization will be developing and documenting its own internal control framework, including IT controls for the toll collection system, back-office operations, and financial reporting. CARTA welcomes guidance from the selected audit firm in this area.
Q (Internal Controls & Governance): Are there known internal control areas where you anticipate needing additional auditor guidance?
A: As a new entity building its operational infrastructure, CARTA anticipates needing auditor guidance in several internal control areas, including: (1) establishing financial reporting controls as CARTA transitions from SACOG administration to independent operations; (2) developing IT controls related to the toll collection system and back-office operations (in partnership with TCA); (3) revenue recognition and toll revenue accounting once the Yolo 80 Express Lanes become operational; (4) grant accounting and compliance, particularly if CARTA begins directly receiving federal funds; and (5) internal controls over cash handling and customer account management associated with toll operations.
SLED stands for State, Local, and Education. These are solicitations issued by state governments, counties, cities, school districts, utilities, and higher education institutions — as opposed to federal agencies.
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