FY2009 HART Comprehensive Annual Financial Report
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Hillsborough Transit Authority A/K/A Hillsborough Area Regional Transit Authority Tampa, Florida Comprehensive Annual Financial Report For the Year Ended September 30, 2009 Mission Statement Our Team is dedicated to providing excellent customer service while building solutions to support Hillsborough County's needs...now and into the future. Prepared by the Finance Department COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Page SECTION I -- INTRODUCTORY SECTION Letter of Transmittal ...................................................................................................................... 2 GFOA Certificate of Achievement ............................................................................................... 12 Organization Chart ....................................................................................................................... 13 Elected and Appointed Officials................................................................................................... 14 Directory of Officials ................................................................................................................... 15 SECTION II -- FINANCIAL SECTION Independent Auditors Report........................................................................................................(1) Management’s Discussion and Analysis ......................................................................................(3) Basic Financial Statements: Statements of Net Assets .........................................................................................................(8) Statements of Revenues, Expenses and Changes in Fund Net Assets.....................................(9) Statements of Cash Flows......................................................................................................(11) Notes to Basic Financial Statements......................................................................................(13) Supplemental Information: Schedule of Expenditures of Federal Awards and State Financial Assistance......................(26) Regulatory Reports: Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Basic Financial Statements Performed in Accordance with Government Auditing Standards ...............................................................(29) Report on Compliance with Requirements Applicable to Each Major Federal Program and State Project and on Internal Control over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General of the State of Florida .................................................................................(31) Schedule of Findings and Questioned Costs...............................................................................(33) “Management Letter” Based on Rules 10.554(1)(I) of the Auditor General of The State of Florida .................................................................................................................(39) _________________________________________________________________________________________ Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -i- TABLE OF CONTENTS (Continued) Page SECTION III -- STATISTICAL SECTION Financial Trends Net Assets by Component (FY2009 – FY2002)............................................................... 21 Changes in Net Assets (FY2009 – FY2003)..................................................................... 23 Revenues by Function/Program (FY2009-FY2000)......................................................... 25 Expenses by Function/Program (FY2009 – FY2000) ...................................................... 27 Property Taxes (FY1998 – FY2009) ................................................................................ 30 Revenue Capacity County-Wide Assessed Value and Actual Value of Taxable Property (FY2008 – FY1996)..................................................................................................... 33 Principal Taxpayers (2008)............................................................................................... 35 Property Tax Levies and Collections (FY2008 – FY1997).............................................. 36 Demographic and Economic Information Demographic and Economic Statistics (2008 – 1997)...................................................... 38 Principal Employers (2008) .............................................................................................. 40 Operating Information Full Time Equivalent Employees by Function/Program (FY2009 – FY2003)................. 42 HART Service Ridership Summary (September 2009).................................................... 44 Historic Ridership (Bus, Streetcar, Paratransit)................................................................ 51 Miscellaneous Information Miscellaneous Statistics - HART...................................................................................... 54 Employment Indicators – Hillsborough County, FL ........................................................ 55 Population – Hillsborough County, FL............................................................................. 56 _________________________________________________________________________________________ Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -ii- SECTION I INTRODUCTORY SECTION _________________________________________________________________________________________ Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -1- March 1, 2010 Councilman Ron Govin, Board Chair and Members of the Board of Directors of the Hillsborough Transit Authority A/K/A Hillsborough Area Regional Transit Authority and Citizens of our Service Area Dear Board Chair, Board Members and Citizens: State law requires that all independent special districts publish each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States (GAAP) and audited in accordance with auditing standards generally accepted in the United States by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR) of the Hillsborough Transit Authority, a/k/a Hillsborough Area Regional Transit Authority (“the Authority”), for the fiscal year ended September 30, 2009. This CAFR is indicative of Authority management’s continued commitment to provide high quality, complete, concise, and reliable financial information on the Authority. This report consists of management’s representations concerning the finances of the Authority. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. 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 provide the Authority’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Authority’s financial 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. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Authority’s basic financial statements have been audited by LarsonAllen LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Authority for the fiscal year ended September 30, 2009, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial _________________________________________________________________________________________ Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -2- statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was reasonable basis for rendering an unqualified, “clean” opinion that the Authority’s financial statements for the fiscal year ended September 30, 2009, are fairly presented in conformity with GAAP. The independent auditors’ report is located at the front of the financial section of this report. The independent audit of the financial statements of the Authority was part of a broader, mandated “Single Audit” designed to meet the special needs of federal and state grantor agencies. The standards governing Single Audit engagements require the independent auditors to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal and state awards. These reports are included in the Single Audit section of this report. GAAP requires that management provide a narrative introduction, overview, and analysis