Comprehensive Annual Financial Report
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METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT For the years ended June 30, 2020 and 2019 Atlanta, Georgia Comprehensive Annual Financial Report For the Years Ended June 30, 2020 and 2019 Atlanta, Georgia Prepared by the Department of Finance Kevin Hurley, Interim Chief Financial Officer INTENTIONALLY LEFT BLANK IV TABLE OF CONTENTS INTRODUCTORY SECTION-Unaudited ........................................................................................ IX Letter of Transmittal .....................................................................................................................IX Certificate of Achievement ........................................................................................................XVII Board of Directors ....................................................................................................................XVIII GM & Executive Staff .................................................................................................................XIX FY2020 Organizational Chart ......................................................................................................XX Rail Map ....................................................................................................................................XXII FINANCIAL SECTION ......................................................................................................................1 Independent Auditor’s Report ....................................................................................................... 1 Management’s Discussion and Analysis ....................................................................................... 5 Statement of Net Position ........................................................................................................... 14 Statement of Revenues, Expenses and Changes in Net Position ............................................. 16 Statement of Cash Flows ............................................................................................................ 17 Notes to the Financial Statements .............................................................................................. 19 REQUIRED SUPPLEMENTARY INFORMATION ..........................................................................70 Schedule of Changes in the Net Pension Liability and Related Ratios ...................................... 70 Schedule of Employer Contributions - Pension .......................................................................... 75 Schedule of Changes in Net OPEB Liability and Related Ratios ................................................ 77 Schedule of Employers Contributions - OPEB ........................................................................... 78 SUPPLEMENTARY INFORMATION ...............................................................................................79 Supplemental Schedule of Revenues and Expenses Budget vs. Actual (Budget Basis) ............................................................................................... 79 Notes to the Supplemental Schedule ......................................................................................... 80 STATISTICAL SECTION-Unaudited ...............................................................................................83 Description of Categories ........................................................................................................... 83 FINANCIAL TRENDS ................................................................................................................87 Condensed Summary of Net Position .......................................................................................................87 Summary of Revenues, Expenses and Changes in Net Position ..............................................................88 Sales Tax Collection and Usage ................................................................................................................89 Revenues and Operating Assistance Comparison to Industry Trend Data ...............................................90 Total Expenses by Function ......................................................................................................................91 Total Operating Expenses by Object .........................................................................................................92 Operating Expenses Comparison to Industry Trend Data .........................................................................93 REVENUE CAPACITY ...............................................................................................................97 Revenues by Source ................................................................................................................... 97 Farebox Recovery Percentage .................................................................................................... 98 Sales & Use Tax Rates Direct and Overlapping Governments ................................................... 99 TABLE OF CONTENTS DEBT CAPACITY .....................................................................................................................103 Sales & Use Tax Revenue Bond Debt Coverage ...................................................................... 103 Sales & Use Tax Revenue Bond Debt Service Limit ................................................................. 104 Sales & Use Tax Revenue Bond Debt Service Limit Last Ten Fiscal Years ............................... 105 Sales & Use Tax Revenue Bond Debt Ratios ............................................................................ 106 Computation of Overlapping Debt ............................................................................................ 107 DEMOGRAPHIC & ECONOMIC INFORMATION ...................................................................111 Trends in Personal Income ........................................................................................................ 111 Population and Employment ..................................................................................................... 112 Unemployment Rates ............................................................................................................... 113 Top Ten Corporate Employers in the Atlanta Region ................................................................ 114 OPERATING INFORMATION ...................................................................................................117 Transit Service Effort & Accomplishments Per Mile .................................................................. 117 Transit Service Effort and Accomplishments Per Hour ............................................................. 118 Unlinked Passenger Changes ................................................................................................... 119 Fare Structure ........................................................................................................................... 120 Vehicles Operated in Maximum Service ................................................................................... 121 Number of Employees .............................................................................................................. 122 Miscellaneous Statistical Data .................................................................................................. 123 SINGLE AUDIT ..............................................................................................................................127 Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................. 127 Independent Auditor’s Report On Compliance For Each Major Federal Program; Report On Internal Control Over Compliance; And Report On The Schedule Of Expenditures Of Federal Awards Required By The Uniform Guidance .................................... 129 Schedule of Expenditures of Federal Awards ........................................................................... 131 Notes to the Schedule of Expenditures of Federal Awards ...................................................... 133 Schedule of Findings and Questioned Costs ........................................................................... 134 INTRODUCTION INTENTIONALLY LEFT BLANK VIII INTRODUCTORY SECTION-Unaudited Letter of Transmittal 2424 Piedmont Rd., NE Atlanta, GA 30324 December 18, 2020 Board of Directors Metropolitan Atlanta Rapid Transit Authority Ladies and Gentlemen: We are pleased to respectfully submit the Metropolitan Atlanta Rapid Transit Authority’s (MARTA’s) 27th Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020 to the MARTA Board of Directors, the citizens of this area and all interested in its financial condition. MARTA is a public body corporate and joint public instrumentality of the City of Atlanta and the counties of Fulton, DeKalb, Cobb, Clayton and Gwinnett by action of the General Assembly of the State of Georgia for the purposes of planning, constructing, financing and operating a public transportation system. This report is published to fulfill the financial reporting requirements of the MARTA Act. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of