2017 Comprehensive Annual Financial
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Comprehensive Annual Financial Report For Fiscal Years Ended December 31, 2017 and 2016 SM U T A H T R A N S I T A U T H O R I T Y UTA Mission Statement Provide integrated mobility solutions to service life’s connections, improve public health and enhance quality of life. UTA Vision We move people Comprehensive Annual Financial Report For Fiscal Years Ended December 31, 2017 and 2016 Finance Department Robert K. Biles Vice President, Finance Troy Bingham Comptroller UTAH TRANSIT AUTHORITY UTAH TRANSIT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT Years Ended December 31, 2017 and 2016 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal ……………………………………………………………………………………………………………………………………………. 7 Certificate of Achievement for Excellence in Financial Reporting ………………………………………………………………………… 18 Organizational Chart ……………………………………………………………………………………………………………………………………………. 19 Board of Trustees and Administration …………………………………………………………………………………………………………………. 20 System Map ………………………………………………………………………………………………………………………………………………………… 23 FINANCIAL SECTION Independent Auditor’s Report …………………………………………………………………………………………………………………………….. 25 Management's Discussion and Analysis ………………………………………………………………………………………………………………. 28 Financial Statements Comparative Statements of Net Position ………………………………………………………………………………………………………… 38 Comparative Statements of Revenues, Expenses, and Changes in Net Position ………………………………………………. 40 Comparative Statements of Cash Flows …………………………………………………………………………………………………………… 41 Notes to the Financial Statements …………………………………………………………………………………………………………………… 43 REQUIRED SUPPLEMENTARY INFORMATION SECTION Schedules of Changes in Net Pension Liability……………………………………………………………………………………………………... 75 Statement of Required Employer Contributions………………………………………………………………………………………………….. 76 Notes to the Required Supplementary Information…………………………………………………………………………………………….. 76 SUPPLEMENTARY SCHEDULES Schedules of Revenues, Expenses, and Changes in Net Position Budget and Actual……………………………………………. 78 STATISTICAL SECTION Financial Trends These schedules contain trend information to help the reader understand how the Authority’s financial ppperformance and well-being have changed over time Net Position…………………………………………………………………………………………………………………………………………………………. 80 Change in Net Position…………………………………………………………………………………………………………………………………………. 80 Revenue History by Source ………………………………………………………………………………………………………………………………….. 81 Expense History by Function………………………………………………………………………………………………………………………………… 81 Revenue Capacity These schedules contain information to help the reader assess the Authority’s most significant local revenue ssssources Local Contributions from Other Governments…………………………………………………………………………………………………….. 82 Local Transit Sales Tax Rates by County………………………………………………………………………………………………………………. 82 Principal Contributors of Sales Tax………………………………………………………………………………………………………………………. 83 Fares……………………………………………………………………………………………………………………………………………………………………. 83 UTAH TRANSIT AUTHORITY COMPREHENSIVE ANNUAL FINANCIAL REPORT Years Ended December 31, 2017 and 2016 TABLE OF CONTENTS (continued) STATISTICAL SECTION (continued) Debt Capacity These schedules present information to help the reader assess the affordability of the Authority’s current level ooof outstanding debt and the Authority’s ability to issue additional debt in the future Debt Service Coverage……………………..………………….……………………………………………………………………………………………… 84 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment tttwithin which the Authority’s financial activities take place. Demographic and Economic Statistics…………………………………………………………………………………………………………………. 84 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the Authority's financial report relates to the services the Authority provides and the activities it performs. Principal Employers…………………………………………………………………………………………………………………………………………… 85 Full Time Equivalent Employees ………………………………………………………………………………………………………………………. 85 Trend Statistics ………………………………………………………………………………………………………………………………………………… 86 Operating Indicators and Capital Assets …………………………………………………………………………………………………………… 87 Performance Measures – Bus Service ………………………………………………………………………………………………………………. 88 Performance Measures – Commuter Rail ………………………………………………………………………………………………………… 91 Performance Measures – Light Rail ………………………………………………………………………………………………………………….. 94 Performance Measures – Demand Response …………………………………………………………………………………………………… 97 COMPLIANCE SECTION Schedules of expenditures of federal awards for the year ending December 31, 2017 Independent Auditor’s Report on Internal Control over financial Reporting and on Compliance and Other nnnMatters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing nnnStandards…………………………………………………………………………………………………………………………………………………………… 101 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over nnlCompliance Required by the Uniform Guidance…………………………………………………………………………………………………. 103 Schedule of expenditures of federal awards ……………………………………………………………………………………………………… 106 Notes to SEFA……………………………………………………………………………………………………………………………………………………. 109 Schedule of Findings and Questioned Costs………………………………………………………………………………………………………. 110 OTHER SUPPLEMENTARY INFORMATION Independent Auditor’s Report on Compliance and Report on Internal Control Over Compliance as required by tttttthe State Compliance Audit Guide……………………………………………………………………………………………………………………… 113 Introductory For Fiscal Years Ended December 31, 2017 and 2016 SM UTAH TRANSIT AUTHORITY 669 West 200 South Salt Lake City, Utah 84101 1-888-RIDE-UTA May 29, 2018 www.rideuta.com To the Board of Trustees Utah Transit Authority and Citizens within the UTA Service Area We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) of the Utah Transit Authority (the Authority) for the fiscal years ended December 31, 2017 and 2016. This document has been prepared by the Authority’s Finance Department using the guidelines recommended by the Government Finance Officers Association of the United States and Canada and conforms to accounting principles generally accepted in the United States of America and promulgated by the Governmental Accounting Standards Board. Management assumes full responsibility for the completeness and reliability of the information contained in this report. Management bases their assurance upon a comprehensive framework of internal control that has been established for this purpose. To provide a reasonable basis for making these representations, management of the Authority has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Authority’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. This report contains financial statements and statistical data which provide full disclosure of all the material financial operations of the Authority. The financial statements have been prepared on the accrual basis of accounting in conformance with generally accepted accounting principles. The Authority is accounted for as a single enterprise fund. This CAFR is indicative of the Authority’s commitment to provide accurate, concise and high-quality financial information to the residents of its service area and to all other interested parties. -Page 7- UTAH TRANSIT AUTHORITY INTRODUCTORY Years Ended December 31, 2017 and 2016 The Authority The Utah Transit Authority was incorporated on March 3, 1970 under authority of the Utah Public Transit District Act of 1969 for the purpose of providing a public mass transportation system for Utah communities. The Authority is governed by a 16 member board of trustees which is the legislative body of the Authority and determines all questions of Authority policy. Twelve members of the Board of Trustees (one non-voting) are appointed by each county, municipality or combination of municipalities which have been annexed to the Authority. The Board also includes one member who is appointed by the State Transportation Commission who acts as a liaison between the Authority and the Transportation Commission, one member of the board is appointed by the Governor, one member is appointed by the Speaker of the Utah State House of Representatives and one member is appointed by the President of the State Senate. All fifteen voting members have an equal vote as the Board of Trustees passes resolutions an ordinances and sets policies for the Authority. The responsibility for the operation of the Authority is held by the President/CEO in accordance with the direction, goals and policies of the Authority’s Board of Trustees. The President/CEO has full charge of the acquisition, construction, maintenance, and operation of the facilities of the Authority and of the administration of the business affairs of the Authority. The President/CEO supervises the executive staff which includes the Vice President of Operations, Vice President of External Affairs, Vice President of Finance, Chief Safety, Security, and Technology Officer, and Chief People Officer. The Chief Executive