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)
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TABLE OF CONTENTS (Continued)
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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
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SECTION I
INTRODUCTORY SECTION
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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
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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 to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. This year’s MD&A can be found immediately following the report of the independent auditors.
Profile of the Authority
The Hillsborough Transit Authority, operating and also known as Hillsborough Area Regional Transit Authority, or HART, was created as a body politic and corporate under Chapter 163, Part V, Sections 163.567, et seq., Florida Statutes, on October 3, 1979. It was chartered for the purpose of providing mass transit service to its two charter members, the City of Tampa (“the City”) and the unincorporated areas of Hillsborough County, Florida (“the County”). The Authority may admit to membership any county or municipality contiguous to one of its members upon application and after approval by a majority vote of the entire Board of Directors. The City of Temple Terrace has been admitted as a member of the Authority.
The Authority’s Board of Directors is comprised of two directors appointed by the Governor of the State of Florida and a minimum of one director from each member. Members are allowed an additional director for each 150,000 persons, or major fraction thereof, residing in those members’ jurisdictional limits. The Authority is governed by its twelve-member Board of Directors (“Board”). The Board makes decisions, designates management, significantly influences operations and maintains primary fiscal responsibility.
The Authority has been determined to be an “Independent Special District” as described in Section 189.403, Florida Statutes, and is authorized to levy an ad valorem tax of up to one-half mill ($.50) on the taxable value of real and tangible personal property within the jurisdiction of its members. Chapter 165.570, Florida Statutes, allows the Authority to levy up to a three mill levy, subject to public referendum. The Authority’s ad valorem taxes are assessed as part of the annual assessment of Hillsborough County, which levies its taxes November 1 of each year.
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Collection of taxes is scheduled for November through the following March. Taxes become delinquent April 1 and tax certificates placing liens on the property are sold May 31.
Additional revenues and funding are received from passenger fares, charter services, other revenue services and grants from the United States Government, the State of Florida, the City and the County.
Located in Hillsborough County, Florida, on the west coast of Florida, the Authority is a regional provider of mass transportation services primarily within Hillsborough County. The total area is 1,266 square miles and has a population of 998,948 according to the 2000 Census and an estimated population of 1,227,271 in 2008. A schematic of the Authority's service area is presented on the following page.
Services and Service Delivery
The Authority provides virtually all public transportation services in this area. These services include fixed route, paratransit, vanpool, light rail (TECO Streetcar) and specialized services. The service area population for density for 2008 was 3379.9. The service population is estimated at 821,306 and the service area is 243 square miles. The authority services this area with 46 routes--33 local and 13 express. The Authority maintains over 3,845 bus stops, 318 shelters maintained by HART, 105 shelters maintained by a vendor, 9 centers, and a fleet of 199 fixed route buses and vans 36 demand response vehicles.
The FY2009 ridership for each mode compared to FY2008 is presented below:
Mode September 30, 2009 September 30, 2008 Percent of Change Bus Operations 11,638,548 12,044,758 (3.4%) Paratransit 97,004 101,426 (4.4%) Streetcar 462,461 440,738 4.9% Vanpool 83,272 91,769 (9.3%)
Tables in the Statistical Section contain service delivery statistics for ten years.
Officials
The Board establishes its policies and sets direction for the Authority. The Board is made up of a chair and eleven members. Three members are appointed by the City of Tampa, six members are appointed by the Hillsborough Board of County Commissioners, one member is appointed by the City of Temple Terrace, and two members are appointed by the Governor. Board members serve staggered three-year terms.
Management
The Chief Executive Officer is responsible for the Authority’s daily operations and directly supervises the core personnel who lead the organization: Government Affairs, Finance, Planning
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and Community Relations, Bus Operations, Maintenance and Engineering, and Administration. Additionally, there are departments that support these functions.
Hillsborough Transit Authority 2009 Local and Express Routes
Budget
The Board is required to adopt an annual operating budget before the beginning of the fiscal year. The budget serves as a policy document, an operations guide, a financial plan and a communication device. The process for developing the Authority’s budget begins with budget review and planning in March through May; and through a series of meetings and analysis,
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results in a balanced operating budget and a prioritized capital budget. The Authority may not spend more than the approved operating budget. The Board must approve increases to the budget. The Chief Executive Officer and the Chief Financial Officer may permit movement of funds within the approved budget.
The HART Board adopted FY2009-10 fiscal year operating and capital budget totaling $143.2 million inclusive of the Authority's biennial 2010/2011 budget. This financial plan allows the Authority to continue to provide the same level of transit service in FY2010 consistent with the FY2009 operating plan with some service improvements which totaled $1 million improving various routes and travel frequencies. The passage of the FY2010 budget totaling $143.2 million, which is $19.6 million or 16% over FY2009 budget, is attributed to $21 million capital increase in capital improvements program expenses.
The property tax initiative driven by mandated property tax reduction has significantly affected the Authority funding services and the delivery of transit services in Hillsborough County.
The FY2010 budget increase of $21 million is attributed essentially to the Authority Capital Improvement Program budget totaling $80.6 million, of which $75.4 million represents the Bus Operations and $5.2 million the Streetcar capital budget for expansion of the rail system. This increase in the capital budget in FY2010 represents an increase of $21 million over FY2009 capital budget. The Hillsborough County government has contributed $40 million to the Authority to construct two bus rapid transit routes for the East-West corridor and the North- South corridor projected to be operational in 2011. The main feature of a bus rapid transit system is having dedicated bus lanes which operate separate from all other traffic modes. This allows buses to operate at a very high level of reliability since only professional motorists are allowed on the bus way.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Authority operates.
Local Economy. The regional economy currently enjoys a slightly favorable economic environment compared with other cities in Florida and local indicators point to continued stability. The regional economy has a diverse economic base that includes tourism, agriculture, construction, finance, health care, technology, and the Port of Tampa. Major industries with headquarters or divisions located within the regional area’s boundaries or in close proximity include telephone and electric service companies, computer hardware and electrical controls manufacturers, tourist attractions, fertilizer manufacturers, MacDill Air Force Base, and the Port of Tampa. Institutions of higher learning located in the regional area include the University of South Florida, the University of Tampa, Hillsborough Community College, and the Stetson University College of Law.
Property tax revenue increases over the previous two years were significantly lower than prior years. The area’s MSA unemployment rate is currently 11.5 percent, slightly higher than the
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national rate of 9.5 percent and slightly higher than the statewide rate of 11.2 percent. The region’s growth and economic diversity are expected to be the basis for continued health of the local economy in coming years.
The Authority’s ability to fund its operations is heavily dependent on the .50 millage levy generated from property taxes. The property tax revenues have declined by $197,000 or .5% since 2007.
As with the global economy, local fuel prices continue to rise above historical highs. This occurrence has a two-sided affect on public transportation providers. Higher fuel prices at the pump tend to encourage higher utilization of public transportation by citizens. However, these same rising costs also impact the Authority’s ability to afford fuel. Rising fuel costs ultimately impacts the cost of maintenance materials and energy costs associated with the Authority’s fleet and customer amenities. Management believes that higher fuel prices will decrease the amount of disposable income in the area, which would decrease consumer spending thereby affecting the local economy and increasing ridership.
Even in light of these challenges, the Authority remains steadfast in its commitment to provide public transportation to its riders while meeting its fiscal challenges by purchasing fuel prices at a lower rate in the futures market.
Long-Range Financial Planning
Due to the significant investment in buses and bus facilities used for service delivery and the necessary funding required to refurbish and to replace those assets when needed, the Authority has been building up resources. As of September 30, 2009, the Authority’s unrestricted net assets totals $20.6 million. Long-term financial projections are maintained and updated when significant events occur that warrant changes to the underlying assumptions.
Major Initiatives
The next transportation-related project is expected to be the proposed sales tax referendum in November 2010. On December 2, 2009, the Hillsborough County, Florida, Board of County Commissioners approved a Resolution declaring its intent to place on the November 2, 2010 ballot for presentation to the Hillsborough County electorate a referendum question of whether to approve the levy of an on-going one percent (1%) Charter County Transportation System Surtax. The proceeds from the tax will be used to fund 75 percent transit related projects with the remaining 25 percent to fund planning, development and maintenance of various non-transit transportation projects. Should the voters approve the referendum for a one percent sales tax to fund the HART Rapid Transit Investment Plan this should provide a dedicated funding source for the transit improvements discussed herewith. The plan as proposed is expected to address the Hillsborough County-wide program of new services and projects.
• Address unmet needs • Enhance existing service • Extend service to new areas
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• Introduce new service types • Move people faster
The Plan Framework is Outlined Below: • Invest resources in highly productive transit corridors with high performance bus and rail • Develop circulators in activity centers that connect bus and rail to specific destinations • Implement effective mobility options in suburban areas that improve Express and flexible services
New Local Service Proposed Consists of the Following: • 10 New Local Routes o Bloomingdale/Lithia-Pinecrest o Bearss/Ehrlich o Big Bend/Balm Rd. o Thonotosassa o NW County LRT feeder o W County LRT feeder o N County LRT feeder o Linebaugh Ave. LRT feeder o NE Hillsborough – Plant City o SR 60-Brandon Blvd. o Route 34 Extension
Circulators and Flex Routes Proposed Consists of the Following: • Community Circulators o Westshore o Downtown Tampa-enhanced service o USF Area • HARTFlex o New Tampa o Temple Terrace o Airport Industrial Area o South Tampa/Gandy o Seffner o Brandon/Riverview o Gibsonton o South County o Town N’ Country o Carrollwood o Plant City o East Hillsborough
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New Express Services Proposed Consists of the Following: • 11 New Express Routes o New Tampa to Westshore o Brandon to Westshore o Northwest County to Westshore o Brandon to USF o Northwest County to USF o Northwest County to Brandon o South County to Brandon o Apollo Beach/Gibsonton to MacDill AFB o Plant City to Downtown Tampa o MTC to MacDill AFB o USF to Westshore
MetroRapid Transit Services Proposed Consist of the Following: • Bus Rapid Transit Services o North-South (Nebraska-Fletcher) 2011 o East-West (Westshore to Temple Terrace) 2013 o Dale Mabry/Himes Ave. (VanDyke Rd., to MacDill AFB) o SR 60/Brandon o USF to New Tampa
Rapid Transit Services Consists of the Following: • Rapid Transit – 45 miles o USF – Downtown (2018) o Downtown – Westshore (2021) o New Tampa o Linebaugh o Brandon o South Tampa
REVENUES Revenue Assumptions to Fund the Planned Transit Improvements Consists of the Following: • Sales Tax o 75 cents for transit / 25 cents for other mobility projects o Growth for inflation and population growth at 4.04% through 2025 & 3.67% thereafter o $7.47 billion projected to be generated through 2040 • Ad Valorem o 0.4682 mills (expected to increase by 2% 2012/2013 and 3% thereafter) generating $31 million in 2011 with the incremental growth • 45% New Starts (Federal and State capital funding) • Other Federal and State Funds • Fare Revenue o Bus Farebox Recovery: 22% to 17% (2040)
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o LRT Farebox Recovery: 15% to 20% (2040) o Demand Response Farebox Recovery: 10% to 8% (2040)
Total Estimated Revenues for 30 years $13.83 billion (2011-2041) • Sales Tax $7.48 billion • Ad Valorem $1.56 billion • Farebox & Other $1.65 billion • New Starts $2.16 billion • Other Federal $ .768 billion • Other State $ .161 billion • Miscellaneous $ .050 billion
Cash management policies and practices. Cash temporarily idle during the year was invested in the Florida State Board of Administration (SBA) Local Government Investment Pool. The investment returns through fiscal year end September 30, 2009, totaled an average of 89 basis points compared to an average of 4.5 percent for FY2008. The SBA investment pool allocation consists of U.S. Treasury Bills/Bonds, Federal Agency Obligations, REPO Agreements, Commercial Paper, Certificates of Deposit, and Asset-Backed Securities. This mix of asset allocation provides a strong diversity for a balanced portfolio. The Board awarded a new banking agreement in 2006 that freed-up all idle cash for investment by pooling the available cash for reinvestment utilizing zero balance operating accounts.
Risk management. Commercial insurance is carried for damage to buildings with a deductible that varies with the cause of loss. The Authority is self-insured for worker’s compensation and general liability. Additional information regarding the Authority’s risk management activity can be found in Note 6 of the notes to the financial statements.
Pension and other post-employment benefits. Substantially, all full-time Authority employees are participants in the Florida Retirement System (“the System”), a multiple-employer, cost- sharing public retirement system. The System, which is controlled by the State Legislature, covers approximately 1,075,175 (as of June 30, 2008) full-time employees of various governmental units within the State of Florida.
The System provides for vesting benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after 62 years with six or more years of service. Early retirement is available after six years of service with a 5 percent reduction of benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation and years-of-service credit where the average compensation is computed as the average of an individual’s highest five years of earnings. Employees are not required to contribute to this retirement system.
The most recent Florida Retirement System (FRS) Annual Report published is for FY2008 (July 1, 2007 through June 30, 2008). According to this report, the FRS actuarial value of assets totaled $130.7 billion with an actuarial accrued liability of $124.1 billion resulting in a funded ratio of 105.35 percent. However, from the current and FY2009 economic conditions and the volatility in the U.S. stock market, the FRS portfolio has realized some decline.
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The Authority’s contribution for FY2009 consisted of 8.69 percent of gross wages for regular employees, 11.96 percent for senior management, and 9.8 percent for the deferred retirement option program participants. The FY2010 contributions have increased by approximately 10 percent.
The Authority has no responsibility to the System other than to make the periodic payments required by State Statutes. The Florida Division of Retirement issues a publicly available financial report that includes financial statements and required supplementary information for the System.
Participating employer contributions are based upon statewide rates established by the State of Florida. The Authority does not provide any other post employment benefits to retirees.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Hillsborough Transit Authority (HART) for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2008. This was the first year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, HART also received the GFOA's Distinguished Budget Presentation Award for its FY2009 annual budget document dated September 22, 2008. In order to qualify for the Distinguished Budget Presentation Award, the government's budget document had to be judged proficient as a policy document, a financial plan, an operations guide, and a communications device.
The preparation of this report would not have been possible without the efficient and dedicated service of the entire staff of the finance department. We wish to express our appreciation to all members of the department who assisted and contributed to the preparation of this report. Credit also must be given to the governing board of directors for their unfailing support for maintaining the highest standards of professionalism in the management of the Hillsborough Transit Authority's finances.
Respectfully submitted,
David J. Armijo David Persaud, MPA, CGFM, CPE Chief Executive Officer Chief Financial Officer
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HILLSBOROUGH TRANSIT AUTHORITY ORGANIZATIONAL CHART AS OF OCTOBER 1, 2009
HART Board of Directors 12 Members
Auditors General Counsel Internal and External
David Armijo Chief Executive Officer
Robert Potts Lena Petit Chief of Staff Exec. Office Manager/Clerk of the Board
VA CA NT Gisela Rivera-Rios Executive Administrative Asst. II Executive Administrative Asst. I
Joe Escobedo David Persaud Philip Hale Mary Shavalier VA CA NT Brenda Mowen Chief of Operations Chief Financial Officer Chief of Maintenance and Engineering Chief of Strategic Planning and Program Development Chief of Service Planning Chief Administrative Officer /E DB Officer
Joe Diaz Kenneth Wagner David Watt Jeannie Satchel VA CA NT Director of Operations Manager of Budget & Finance Director of Construction Management Manager of Grants Director of Procurement & Contract Admin.
Sylvia Cas tillo David Bruce Steve Taylor VA CA NT Michael Stephens Director of Contract and Marketing Services Manager of Accounting and Financial Reporting INTERIM Fleet Maintenance Manager Planning Manager Director of Human Resources
Rickey Kendall Donna Loy Steve Feigenbaum Donna Chen Risk & Environmental Safety Manager Manager of Passenger Amenities and Facilities Manager of Service Planning Sylvia Berrien INTERIM Marketing Manager Staff Attorney
Bob Andis Luis Rivera Manager of Technical Services Rick Fitz-Gordon Operations Superintendent Manager of Information Systems VA CA NT Frank Colavolpe Support Maintenance Manager Janice Cook Division Manager DBE Coordinator
Ruthie Reyes Everardo Prieto Paratransit / Customer Service Manager Inventory Control Supervisor
David Kelsey, Jr. Safety, Security and Training Manager
Peter Mikos Asst. Manager of Streetcar Operations
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ELECTED AND APPOINTED OFFICIALS
Board of Directors (As of September 30, 2009)
Officers Ron Govin, Chairperson Allison Hewitt, Vice Chairperson John Dingfelder, Secretary
Hillsborough County City of Tampa Wallace Bowers Councilman John Dingfelder Dr. Steven Polzin David Mechanik Michael York Fran Davin Commissioner Rose Ferlita Commissioner Mark Sharpe Commissioner Kevin Beckner State of Florida City of Temple Terrace John Byczek Council Member Ron Govin Alison Hewitt
Chief Executive Officer David J. Armijo
General Counsel Independent Auditors Internal Auditors Stiles, Taylor & Grace, PA LarsonAllen LLP Cherry, Bekaert & Holland, LLP
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DIRECTORY OF OFFICIALS
APPOINTED OFFICIALS (As of September 30, 2009)
Bob Potts, Chief of Staff/Civil Rights Officer
Joe Escobedo, Chief of Operations
David Persaud, Chief Financial Officer
Philip Hale, Chief of Maintenance and Engineering
Mary Shavalier, Chief of Planning & Program Development
Brenda Mowen, Chief Administrative Officer/DBE Officer
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SECTION II
FINANCIAL SECTION
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COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED
SEPTEMBER 30, 2009 AND 2008
HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY
TABLE OF CONTENTS YEARS ENDED SEPTEMBER 30, 2009 AND 2008
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
SUPPLEMENTARY INFORMATION: SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE 26
REGULATORY REPORTS: REPORT ON INTERNAL CONTROL OVER FINANCIAL 29 REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 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- 31 133 AND CHAPTER 10.550, RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA SCHEDULE OF FINDINGS AND QUESTIONED COSTS 33 “MANAGEMENT LETTER” BASED ON RULE 10.554(1)(I) OF 39 THE AUDITOR GENERAL OF THE STATE OF FLORIDA
www.larsonallen.com
INDEPENDENT AUDITORS’ REPORT
Board of Directors Hillsborough Transit Authority a/k/a Hillsborough Area Regional Transit Authority Tampa, Florida
We have audited the accompanying statements of net assets of the Hillsborough Transit Authority, a/k/a Hillsborough Area Regional Transit Authority, or HART (“the Authority”), as of September 30, 2009 and 2008, and the related statements of revenues, expenses, and changes in fund net assets and cash flows for the years then ended, which collectively comprise the Authority’s basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Authority’s management. 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 basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of September 30, 2009 and 2008, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
LarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms.
Board of Directors Hillsborough Transit Authority a/k/a Hillsborough Area Regional Transit Authority
In accordance with Government Auditing Standards, we have also issued our report dated January 22, 2010 on our consideration of the Authority’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.
The management’s discussion and analysis on pages 3 through 7 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority’s basic financial statements taken as a whole. The accompanying schedule of expenditures of federal awards and state financial assistance for the year ended September 30, 2009, is presented for purposes of additional analysis as required by U.S Office of Management and Budget Circular A-133, Audits of States, Local Governments and Nonprofit Organizations and Chapter 10.550, Local Government Entity Audits, Rules of the Auditor General of the State of Florida, and is not a required part of the basic financial statements. The schedule of expenditures of federal awards and state financial assistance has been subjected to auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, when considered in relation to the basic financial statements taken as a whole.
LarsonAllen LLP
Tampa, Florida January 22, 2010
2
MANAGEMENT’S DISCUSSION AND ANALYSIS
HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS
The following management’s discussion and analysis (MD&A) of the Hillsborough Transit Authority’s (“the Authority”), a/k/a Hillsborough Area Regional Transit, financial performance provides an overview of the financial activities for the fiscal year ended September 30, 2009. Please read it in conjunction with the financial statements, which follow this section.
OVERVIEW OF THE FINANCIAL STATEMENTS
The financial section of this report consists of three parts: management’s discussion and analysis (this section), the basic financial statements and notes to the financial statements, and other required supplementary information.
The Authority’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America as applied to an enterprise fund using an accrual basis of accounting. Under this basis, revenues are recognized in the period in which they are earned and expenses are recognized in the period in which they are incurred.
Included in the financial statements are the statement of net assets, the statement of revenues, expenses, and changes in fund net assets, the statement of cash flows, and the related notes.
The Statement of Net Assets presents information on the Authority’s assets and liabilities, of which the difference is net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial health of the Authority is improving or deteriorating.
The Statement of Revenues, Expenses, and Changes in Fund Net Assets present information on the Authority’s operating revenues and expenses and non-operating revenue and expenses for the fiscal year. The net income or loss when combined with capital grant revenue determines the net change in assets for the year. The net change in assets is combined with the previous year-end’s net asset total to arrive at the net asset total for this fiscal year.
The Statement of Cash Flows presents information on the Authority’s cash and cash equivalent activities for the fiscal year resulting from operating activities, capital and related financing activities, non-capital and related financing activities and investing activities. The net result of these activities added to the beginning of the year cash balance reconciles to the cash and cash equivalent balance at the end of the current fiscal year.
FINANCIAL HIGHLIGHTS
• Net assets of the Authority increased by $5,373,491 or 4.2 percent, of which $3,329,021 or 3.2 percent represents an increase in the amount invested in capital assets and $2,044,470 or 8.8 percent represents an increase in unrestricted assets.
• The 3.2 percent increase in capital assets (net of depreciation) is largely attributable to: purchases of forty one revenue vehicles, construction costs for the 21st Avenue bus egress system, continued installation of the new electronic resource planning (ERP) system, net of the disposal of thirty three revenue vehicles, thirteen support vehicles, and data processing equipment.
3 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS
• The Authority’s total operating revenues increased $107,248 or by 0.8 percent. This increase was a result of a 0.6 percent increase in passenger fares and a 6.4 percent increase in advertising revenues.
• Operating expenses increased by $7,820,528 or 13.7 percent. Salary expense increased $2,192,651 or 8.7 percent due to the addition of new positions and increases in pay rates for labor contracts. Insurance cost and settlement decreased $1,199,843 or 38.3 percent due to the decrease in the actuarial calculation for claims liability. Operating expenditures reimbursed by grants increased by $2,602,314 or 229.2 percent. Payroll taxes, fringe benefits and workers’ comp increase by $1,811,422 or 14.8 percent due to increase in health insurance premium costs and compensated absences paid outs.
FINANCIAL ANALYSIS OF THE AUTHORITY
Statement of Net Assets
• As noted earlier, net assets serve as a measurement of the Authority’s financial position over a period of time. The Authority’s assets exceeded liabilities by $134,226,709 and $128,853,218 as of September 30, 2009 and 2008, respectively.
• The largest portion of the Authority’s net assets each year, 81.1 percent and 81.9 percent at September 30, 2009 and 2008, respectively, represents its investment in capital assets (i.e., land, buildings and improvements, buses, paratransit vans, streetcars). The Authority uses these capital assets to provide services to its customers. These assets are not available for spending in future years.
• As discussed in Note 3 to the basic financial statements, in December 2007 the Florida State Board of Administration was restructured and split into two groups. Fund A consists of high quality money market instruments and Fund B consists of sub-prime related instruments. In the opinion of management, the restructuring will not impair the principal amount of the investments held by the Authority as of September 30, 2009.
• A portion of the Authority’s assets, $4,762,000 or 3.5 percent and $4,791,902 or 3.7 percent at September 30, 2009 and 2008, respectively, represents unrestricted resources that are intended to be used for the Authority’s self insurance program. An additional portion of the Authority’s net assets, $20,591,185 or 15.3 percent and $18,516,813 or 14.4 percent at September 30, 2009 and 2008, respectively, represents remaining resources that are unrestricted. These funds may be used to meet the ongoing obligations of the Authority.
4 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS
Table 1 Condensed Statement of Net Assets Increase Percentage 2009 2008 (Decrease) Change 2007 Assets: Current assets$ 39,195,542 $ 36,688,595 $ 2,506,947 6.8%$ 33,020,210 Capital assets 108,873,524 105,544,503 3,329,021 3.2% 100,884,345 Total assets 148,069,066 142,233,098 5,835,968 4.1% 133,904,555 - Liabilities: Current liabilities 9,235,855 7,753,606 1,482,249 19.1% 7,623,905 Non-current liabilities 4,606,502 5,626,274 (1,019,772) -18.1% 5,237,626 Total liabilities 13,842,357 13,379,880 462,477 3.5% 12,861,531
Net Assets: Invested in capital assets 108,873,524 105,544,503 3,329,021 3.2% 100,884,345 Unrestricted 25,353,185 23,308,715 2,044,470 8.8% 20,158,679 Total net assets$ 134,226,709 $ 128,853,218 $ 5,373,491 4.2%$ 121,043,024
Statements of Revenues, Expenses, and Changes in Net Assets The Authority operates as a single enterprise fund providing public transportation to the community. User charges, in the form of passenger fares, represented 19.3 percent and 20.1 percent of total operating revenues and non-operating revenues in fiscal years 2009 and 2008, respectively. The cost of providing the remainder of the service was subsidized by ad valorem tax revenue collections and federal, state, and local funding. The Authority’s millage rate for the 2009 and 2008 tax year was 0.4682 and 0.4495 mill, respectively.
Table 2 Condensed Statement of Revenues, Expenses and Changes in Net Assets Increase Percentage 2009 2008 (Decrease) Change 2007 Operating revenues$ 12,789,430 $ 12,682,182 $ 107,248 0.8%$ 11,291,671 Operating expenses (64,788,547) (56,968,019) (7,820,528) 13.7% (56,001,982) Operating loss before depreciation (51,999,117) (44,285,837) (7,713,280) 17.4% (44,710,311) Depreciation (11,482,036) (9,335,084) (2,146,952) 23.0% (8,144,250) Operating loss (63,481,153) (53,620,921) (9,860,232) 18.4% (52,854,561)
Federal, State and local grants 13,848,661 9,615,363 4,233,298 44.0% 9,580,589 Property tax proceeds 36,106,704 36,586,961 (480,257) -1.3% 36,423,195 Other non-operating revenues 368,608 1,320,134 (951,526) -72.1% 2,185,494 Non-operating revenues and expenses 50,323,973 47,522,458 2,801,515 5.9% 48,189,278
Loss before capital grants (13,157,180) (6,098,463) (7,058,717) 115.7% (4,665,283) Capital grants 18,530,671 13,908,657 4,622,014 33.2% 15,717,500 Increase in net assets$ 5,373,491 $ 7,810,194 $ (2,436,703) -31.2%$ 11,052,217
As noted above, fiscal year 2009 operating revenues increased by 0.8 percent, while operating expenses prior to the recognition of depreciation increased by 13.7 percent.
• Passenger fares increased by 0.6 percent in fiscal year 2009, from $12,119,376 in fiscal year 2008 to $12,188,502 in fiscal year 2009. Revenues remained flat.
5 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS
• Investment income decreased 88.3 percent in fiscal year 2009 to $86,189, from $736,964 in fiscal year 2008. The decline in interest rate contributed to the decline in investment income.
• Ad valorem distributions net of Property Appraiser and Tax Collector commissions decreased 1.3 percent or $480,257 over fiscal year 2008.
• Salaries increased by 8.7 percent or $2,192,651 in fiscal year 2009 over fiscal year 2008. Salaries in fiscal 2009 increased from fiscal 2008 due to overtime costs and increases in pay rates due to labor contracts for the unions and also for non-bargaining employees.
• Operating expenditures reimbursed by grants increased in fiscal year 2009 by $2,602,314 or 229.2 percent, to $3,737,616, from $1,135,302 in fiscal year 2008, and included a variety of costs. Some of the costs subsidized are by outside agencies were used for financial planning, project administration, design and engineering, purchase of parts to maintain the integrity of the fleet, quality service analysis, and lease expenses.
• Fuel and lubricants increased by $1,128,768, or 21.3 percent, over the prior year. The increase was mainly because of the increase in the average cost of diesel fuel used in buses for increased fixed route services.
• Insurance premiums, self insurance costs and settlements decreased by $1,199,843 in fiscal year 2009. This increase is due to the decrease in the actuarial calculation for claims liability.
• Non-operating revenues of the Authority increased by $2,801,515 or 5.9 percent in fiscal 2009. Most of the increase was from additional federal, state, and local grants offset by reductions of interest income and property tax proceeds.
• Capital grants from local agencies increased by $4,622,014 in fiscal year 2009. This increase was due to additional federal and local grants offset by a reduction in state grants.
Capital Assets The Authority’s investment in capital assets for the fiscal year ending September 30, 2009 included: buildings and improvements, computer software and hardware, revenue and other vehicles and equipment.
• The Tampa International Airport (TIA) Transfer Center, near Spruce Street and O’Brien Avenue at TIA property was approved for property lease in July 2009. Design is to start in 2010. Completion is expected in 2011.
• The Real Time Scheduling Adherence Monitoring System was installed in August 2009 at five transfer/transit centers. Final acceptance is expected in early 2010.
• The organization-wide integrated Enterprise Resource Planning (ERP) System software conversion was partially completed by July 2009. The new software is Microsoft
6 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS
Dynamics (GP), Asset WORKS FASuites, and ProActis. Final conversion is expected in 2010.
• The Authority’s acquisition of revenue vehicles and related equipment included the purchase of thirty new buses and eleven demand response vehicles.
• Transit Infrastructure for FY09 included the placement of 104 (55 Signal Outdoor, 13 developers, 36 HART) bus shelters which were a collaboration by HART and its advertising contractor Signal Outdoor. Also in 2009, 12 bus bays were built by Hillsborough County, FDOT and HART, as well as 60 landing pads throughout the county by various agencies including HART. In addition to these transit facilities, 16 sidewalk and ADA improvement projects were completed.
• The Streetcar Extension phase IIa construction project design specifications were completed in 2009. Construction started in 2009 and is expected to be completed in late 2010.
• The Maintenance Fueling Facility for the upgrade to above ground storage tanks was bid in May 2009. Final completion is expected in February 2010.
• Preliminary engineering and traffic analysis for the North-South Bus Rapid Transit were conducted in 2009. Final designs are expected to be bid in early 2010, construction to begin in late 2010, and operational in November 2011.
• The 21st Avenue facility rehab/upgrades relating to the Columbus access, signals and shelters were completed in 2009. The installation of an emergency generator for the Administration Building was completed in 2009. The Maintenance Building roof was recoated and sealed in 2009. Major operations analysis started in 2009 to determine facility needs.
Long Term Debt Administration The Authority has no long-term debt. Stringent capital funding and project implementation requirements have enabled the Authority to avoid issuing long-term debt instruments for the construction of capital projects.
REQUESTS FOR INFORMATION
This financial report is intended to provide an overview of the finances of the Authority for those with an interest in this organization. If you have questions concerning information contained within this report, contact David Persaud, Director of Finance, Hillsborough Area Regional Transit Authority, Finance Division, 1201 East 7th Avenue, Tampa, Florida 33605.
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7
BASIC FINANCIAL STATEMENTS
HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY STATEMENTS OF NET ASSETS SEPTEMBER 30, 2009 AND 2008
ASSETS 2009 2008 Current assets: Cash and cash equivalents (Note 3)$ 29,716,047 $ 27,688,526 Investments 486,270 855,298 Accounts receivable: Trade and other, net of allowance for uncollectible accounts of $32,613 in 2009 and $35,256 in 2008 771,353 1,252,591 Federal grants 5,347,731 3,970,942 State grants 203,459 187,955 Local grants 503,355 385,557 Inventory of replacement parts and supplies 1,556,353 1,597,191 Prepaid expenses 610,974 750,535 Total current assets 39,195,542 36,688,595
Capital assets, net of accumulated depreciation (Note 4) 108,873,524 105,544,503
Total assets 148,069,066 142,233,098
LIABILITIES Current liabilities: Accounts payable 4,266,093 4,292,322 Accrued expenses 1,533,625 885,576 Deferred revenue 873,277 1,109,475 Self insurance and loss contingencies due within one year (Notes 3 and 6) 2,421,860 1,366,233 Compensated absences due within one year 141,000 100,000 Total current liabilities 9,235,855 7,753,606
Non-current liabilities: Self insurance and loss contingencies (Notes 3 and 6) 2,340,140 3,425,669 Compensated absences due in more than one year 2,266,362 2,200,605 Total current liabilities 4,606,502 5,626,274
Total liabilities 13,842,357 13,379,880
NET ASSETS
Net assets: Invested in capital assets (Note 4) 108,873,524 105,544,503 Unrestricted net assets (Note 8) 25,353,185 23,308,715 Total net assets$ 134,226,709 $ 128,853,218
The notes to basic financial statements are an integral part of these statements. 8 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS YEARS ENDED SEPTEMBER 30, 2009 AND 2008
2009 2008 Operating revenues: Passenger fares$ 12,188,502 $ 12,119,376 Charter fares 8,958 8,536 Advertising 591,970 554,270 Total operating revenues 12,789,430 12,682,182
Operating expenses: Salaries 27,394,880 25,202,229 Payroll taxes, fringe benefits and workers' compensation 14,079,042 12,267,620 Fuel and lubricants 6,422,889 5,294,121 Contracted services 3,271,938 3,204,302 Parts and supplies 3,810,671 3,534,469 Insurance premiums, self insurance costs and settlements 1,936,301 3,136,144 Utilities 1,027,029 887,666 Marketing and promotion 848,547 666,462 Other 2,259,634 1,639,704 Operating expenditures reimbursed by grants 3,737,616 1,135,302 Total operating expenses before depreciation 64,788,547 56,968,019 Operating (loss) before depreciation (51,999,117) (44,285,837) Depreciation 11,482,036 9,335,084 Operating (loss) $ (63,481,153) $ (53,620,921)
Non-operating revenues: Operating assistance grants Federal 8,922,109 4,445,445 State 3,669,407 3,694,543 Local 1,257,145 1,475,375 Property tax proceeds, net 36,106,704 36,586,961 Interest income 86,189 736,964 Other income 282,419 583,170 Non-operating revenues 50,323,973 47,522,458 (Loss) before capital grants (13,157,180) (6,098,463)
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The notes to basic financial statements are an integral part of these statements. 9 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS YEARS ENDED SEPTEMBER 30, 2009 AND 2008
2009 2008 (Continued from previous page)
Capital grants: Federal$ 16,746,036 $ 13,486,392 State 171 424,348 Local 1,784,464 (2,083) Total capital grants 18,530,671 13,908,657
Increase in net assets 5,373,491 7,810,194
Net assets, beginning of year 128,853,218 121,043,024
Net assets, end of year$ 134,226,709 $ 128,853,218
10 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2009 AND 2008
2009 2008 Cash flows from operating activities: Cash received from customers$ 13,270,668 $ 12,458,896 Cash paid to employees (40,719,116) (37,654,908) Cash paid to suppliers (23,161,296) (19,395,623) Other receipts 282,420 583,170 Net cash used in operating activities (50,327,324) (44,008,465)
Cash flows from noncapital financing activities: Operating grants received 12,376,969 9,515,816 Property tax proceeds 36,106,704 36,586,961 Net cash provided by noncapital financing activities 48,483,673 46,102,777
Cash flows from capital and related financing activities: Purchase of capital assets (15,023,431) (14,005,436) Capital assistance grants 18,256,074 14,265,818 Proceeds from the sale of revenue vehicles 183,312 55,221 Net cash provided by capital and related financing activities 3,415,955 315,603
Cash flows from investing activities: Proceeds from sales and maturities of investments 185,792 2,353,837 Purchase of investments - (3,425,124) Interest income 269,425 952,953 Net cash provided by investing activities 455,217 (118,334)
Net increase in cash and cash equivalents: 2,027,521 2,291,581
Cash and cash equivalents, beginning of year 27,688,526 25,396,945
Cash and cash equivalents, end of year$ 29,716,047 $ 27,688,526
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The notes to basic financial statements are an integral part of these statements. 11 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2009 AND 2008
(Continued from previous page) Reconciliation of operating expenses in excess of operating revenues to net cash used in operating activities:
Operating loss$ (63,481,153) $ (53,620,921)
Adjustments to reconcile operating expenses in excess of operating revenues to net cash used in operating activities: Depreciation 11,482,036 9,335,084 Gain on sale of capital assets (183,312) (55,697) Loss on disposal of assets 212,373 10,670 (Increase) decrease in accounts receivable 481,237 (208,450) Decrease in other receipts 282,420 583,170 (Increase) decrease in inventories 40,838 (152,644) (Increase) decrease in prepaid expenses 139,561 (432,864) Increase (decrease) in accounts payable (26,228) 291,183 Increase in accrued expenses 648,049 34,738 Increase in accumulated unused compensated absences 106,757 103,364 Increase (decrease) in other liabilities (29,902) 103,902
Total adjustments 13,153,829 9,612,456
Net cash used in operating activities$ (50,327,324) $ (44,008,465)
The notes to basic financial statements are an integral part of these statements. 12
NOTES TO BASIC FINANCIAL STATEMENTS
HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 1 ORGANIZATION AND REPORTING ENTITY
Description
Hillsborough Transit Authority, operating and also known as Hillsborough Area Regional Transit Authority, or HART (“the Authority”), was created as a body politic and corporate under Chapter 163, Part V, Sections 163.567, et seq., Florida Statutes, on October 3, 1979. It was chartered for the purpose of providing mass transit service to its two charter members, the City of Tampa (“the City”) and the unincorporated areas of Hillsborough County, Florida (“the County”). The Authority may admit to membership any county or municipality contiguous to a member of the Authority upon application and after approval by a majority vote of the entire Board of Directors. The City of Temple Terrace has been admitted as a member of the Authority.
The Authority’s Board of Directors is comprised of two directors appointed by the Governor of the State of Florida and a minimum of one director from each member of the Authority. Members are allowed an additional director for each 150,000 persons, or major fraction thereof, resident in those members’ jurisdictional limits.
Basis of Presentation
The Authority operates the transit system as a single enterprise fund with operational cost centers to account for costs of services: operations, maintenance, and administrative. Ad valorem tax revenues, operating grants and other non-capital grant revenue are classified as non-operating revenue. Capital grants are separately presented in the statements of revenue, expenses and changes in fund net assets.
The Authority’s financial statements are presented in accordance with accounting principles generally accepted in the United States of America. The Authority applies all applicable pronouncements of the Financial Accounting Standards Board of the Financial Accounting Foundation (FASB) issued on or before November 30, 1989, and all applicable pronouncements required by the Governmental Accounting Standards Board of the Financial Accounting Foundation (GASB) subsequent to that date.
The accompanying financial statements are reported on the accrual basis of accounting, under which, revenues are recognized when earned and measurable.
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13 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Authority’s significant financial and accounting policies utilized in formulating these financial statements are as follows:
Deposits and Investments
Florida Statute 218.415, and the Authority’s investment policy authorize the Authority to invest surplus funds in the following:
a. the Local Government Surplus Funds Trust Fund, an investment pool, under the sponsorship of the FSBA; b. negotiable direct obligations of, or obligations of which the principal and interest are unconditionally guaranteed by, the U.S. Government; c. interest bearing time deposits or savings accounts in qualified public depositories as defined in Section 280.02, Florida Statutes; d. obligations of the Federal Home Loan Mortgage Corporation; e. obligations of the Federal National Mortgage Association; f. securities of, or other interest in open-end or closed-end management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C ss.80a-1 et seq., as amended from time to time, provided the portfolio of such investment company or trust fund is limited to obligations of the United States Government or any agency or instrumentality thereof and to repurchase agreements fully collateralized by such United States Government obligations, and provided such an entity takes delivery of such collateral either directly or through an authorized custodian; g. prime commercial paper with the highest credit quality rating from a nationally recognized agency; h. tax exempt obligations rated “AA” or higher and issued by state and local governments.
The Authority invests funds throughout the year with the Local Government Surplus Funds Trust Fund Investment Pool, (“the Pool”), administered by the State Board of Administration (SBA) under the regulatory oversight of State of Florida, Chapter 19-7 of the Florida Administrative Code.
On December 4, 2007, based on recommendations from an outside financial advisor, the SBA restructured the Pool into two separate pools. Pool A, subsequently renamed the LGIP pool, consisted of all money market appropriate assets. The LGIP pool is considered a Securities and Exchange Commission (SEC) “2a7-like” fund, with the fair value of the investment equal to the account balance. A 2a7-like fund is not registered with the SEC as an investment company, but has a policy that it will and does operate in a manner consistent with the SEC’s Rule 2a7 of the Investment Company Act of 1940, the rules governing money market funds. Thus, the pool operates essentially as a money market fund, but is classified as an external investment pool.
14 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Pool B, referred to as the Fund B Surplus Funds Trust Fund (“Fund B”), consists of securities originally purchased for the LGIP pool that 1) defaulted in the payment of principal and interest; 2) were extended; 3) were restructured or otherwise subject to workout; 4) experienced elevated market illiquidity; or 5) did not meet the criteria of the nationally recognized statistical rating organization that provides the LGIP pool’s AAAm rating. Fund B will be accounted for as a fluctuating net asset value (NAV) pool.
Accounts Receivable
The Authority provides for an allowance for doubtful accounts based on the expected collectability of outstanding balances.
Inventory
Inventory, principally consisting of vehicle replacement parts and operating supplies, is stated at average cost.
Capital assets
Capital assets are defined by the Authority as assets with an initial, individual cost of more than $5,000. Such assets are recorded at cost and are depreciated using the straight-line method over the estimated useful lives as follows:
Useful lives (years) Building and improvements 5 - 40 Revenue vehicles 4 - 30 Operating transit and related equipment 3 - 7 Other equipment, fixtures, and other vehicles 3 - 7
On an annualized basis, the Authority evaluates the useful lives of the capital assets and writes off net capitalized costs of assets with no future value.
Donated capital assets are valued at their fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.
Compensated Absences
Vacation pay is accrued when earned; vested or accumulated vacation leave up to a maximum of 240 hours, per employee, is reported as expense and a liability; the employee is allowed to transfer accumulated hours in excess of 240 to the sick leave pool. The portion of sick leave that is payable at retirement is accrued when vested; the Authority allows employees to accumulate unused sick leave at varying rates depending on several factors, including the employee's union representation and length of employment.
15 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
In accordance with GASB Statement No. 16, Accounting for Compensated Absences, the compensated absences liability is calculated based on the pay or salary rates in effect at the balance sheet date. Additionally, accruals have been made for salary- related payments associated with the payment of compensated absences, using the rates in effect at the balance sheet date. The salary-related payments subject to this accrual are those items for which an employer is liable to make a payment directly and incrementally associated with payments made for compensated absences on termination. Accordingly, the Authority has also recognized 7.65% of the compensated absences liability, representing its share of the Social Security and Medicare taxes. An accrual is also made for the pension cost related to the compensated absences amount because the Authority’s employees are covered under the Florida Retirement System.
Net Assets
Net assets present the difference between assets and liabilities in the statements of net assets. Net assets are reported as restricted when there are legal limitations imposed on their use by laws or regulations of other governments or external restrictions by creditors or grantors. Unrestricted net assets may be designated for specific purposes as the option of the Authority’s Board of Directors. If restricted and unrestricted net assets are available for the same purpose, then restricted assets will be used before unrestricted assets.
Property Tax Revenue
The Authority has been determined to be an “Independent Special District” as described in Section 189.403, Florida Statutes, and is authorized to levy an ad valorem tax of up to one-half mill ($.500000) on the taxable value of real and tangible personal property within the jurisdiction of its members. Chapter 165.570, Florida Statutes, allows the Authority to levy up to a three mill levy, subject to public referendum. Property tax collections are governed by Chapter 197, Florida Statutes. The Hillsborough County Tax Collector bills and collects all property taxes levied within the County. Discounts of 4, 3, 2, and 1% are allowed for early payment in November, December, January, and February, respectively.
The Tax Collector remits collected taxes at least monthly to the Authority. The Authority recognizes property tax revenue on a cash basis as it is received from the Tax Collector since virtually all taxes levied will be collected through the tax collection process, and the remittances in October and November for prior fiscal year taxes are insignificant.
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16 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Calendar of events is as follow:
January 1 Property taxes are based on assessed value at this date as July 1 Assessment roll approved by the state. September 30 Millage resolution approved the Authority. October 1 Beginning of fiscal year for which taxes have been levied. November 1 Property taxes due and payable. November 30 Last day for 4% maximum discount. April 1 Unpaid property taxes become delinquent. May 15 Tax certificates are sold by the Hillsborough County Tax
Passenger and Charter Fares
Passenger cash fares are recorded as revenue at the fair box. Multi-issue passes are recorded as revenue when sold. Charted revenue is recorded at the time services are performed.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates that affect certain reported amounts and disclosures. These estimates are based on management’s knowledge and experience. Accordingly, actual results could differ from these estimates.
Reclassifications
Certain accounts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements.
NOTE 3 DEPOSITS AND INVESTMENTS
At September 30, 2009 and 2008, the bank balance (restricted and unrestricted) of the Authority’s deposits was $3,120,386 and $4,716,768, respectively, and the book balance was $2,886,173 and $4,311,919, respectively. The Federal Deposit Insurance Corporation (FDIC) insures the balances up to $250,000 for each banking relationship. The remaining balances are collateralized pursuant to Chapter 280, Florida Statutes. The difference between the Authority’s books and bank balance is due to outstanding checks and deposits in transit in these accounts. The Authority’s procedures have been to replenish the bank accounts with transfers from the interest bearing accounts at the Florida State Board of Administration Local Government Surplus Trust Fund Investment Pool to cover cash needs.
Cash on Hand
The Authority had cash on hand totaling $69,563 and $67,212 as of September 30, 2009 and 2008, respectively.
17 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 3 DEPOSITS AND INVESTMENTS (CONTINUED)
Investments
As of September 30, 2009, the Authority had $26,760,313 invested in the LGIP pool, with no liquidity restrictions, and had $885,494 remaining in Fund B, with a fair value of $486,270.
Custodial risk – Custodial credit risk is the risk that the Authority will not be able to recover deposits or the value of investments in the event of the failure of a depository financial institution or a third party holding the investment securities. At September 30, 2009, the Authority had demand deposits of $29,646,486. Demand deposits are fully insured by the FDIC and the multiple financial institution collateral pool, required by Section 280.07 and 280.08, Florida Statutes.
Credit risk- Credit quality risk results from potential default of investments that are not financially sound. The LGIP pool was rated AAAm by Standard & Poor’s at September 30, 2009. Fund B is not rated by a nationally recognized statistical rating agency.
Interest rate risk- Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. At September 30, 2009, all of the Authority’s excess cash was invested with the State Board of Administration Local Government Surplus Trust Funds Investment Pool. Investments in Fund B are only made available to participants as the underlying assets mature, or as interest payments on these assets are made. As of September 30, 2009, the weighted average days to maturity of the LGIP pool was 33 days; the weighted average life (based on expected future cash flows) of Fund B was 6.69 years. Because Fund B consists of restructured or defaulted securities, there is considerable uncertainty regarding the weighted average life.
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18 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 4 CAPITAL ASSETS
Capital asset activity for the year ended September 30, 2009 is summarized as follows:
Balance at Balance at Additions and Deletions and September 30, Description September 30, 2008 Reclasses Reclasses 2009
Non-depreciable capital assets: Land$ 13,509,257 $ - $ - $ 13,509,257 Construction in progress 2,054,526 2,140,910 2,779,786 1,415,650 Total non-depreciable capital assets 15,563,783 2,140,910 2,779,786 14,924,907
Depreciable assets: Buildings and improvements 49,966,783 896,600 298,690 50,564,693 Operating and transit related equipment 22,317,770 2,798,639 678,789 24,437,620 Other equipment, fixtures, and other vehicles 24,801,576 667,815 970,274 24,499,117 Revenue vehicles 60,343,589 11,299,253 4,183,778 67,459,064 Total depreciable capital asset 157,429,718 15,662,307 6,131,531 166,960,494
Less, accumulated depreciation for: Buildings and improvements 19,005,151 1,789,700 189,286 20,605,565 Operating and transit related equipment 10,007,712 2,850,299 882,305 11,975,706 Other equipment, fixtures, and other vehicles 6,928,562 1,815,656 668,952 8,075,266 Revenue vehicles 31,507,573 5,026,381 4,178,614 32,355,340 Total accumulated depreciation 67,448,998 11,482,036 5,919,157 73,011,877
Total depreciable capital asset, net 89,980,720 4,180,271 212,374 93,948,617
Capital assets, net$ 105,544,503 $ 6,321,181 $ 2,992,160 $ 108,873,524
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19 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 4 CAPITAL ASSETS (CONTINUED)
Capital asset activity for the year ended September 30, 2008 is summarized as follows:
Balance at Balance at Additions and Deletions and September 30, Description September 30, 2007 Reclasses Reclasses 2008
Non-depreciable capital assets: Land$ 13,187,260 $ 321,997 $ - $ 13,509,257 Construction in progress 8,848,112 11,479,266 18,272,852 2,054,526 Total non-depreciable capital assets 22,035,372 11,801,263 18,272,852 15,563,783
Depreciable assets: Buildings and improvements 42,977,311 7,441,173 451,701 49,966,783 Operating and transit related equipment 16,168,304 9,729,732 3,580,266 22,317,770 Other equipment, fixtures, and other vehicles 22,424,730 2,653,691 276,845 24,801,576 Revenue vehicles 62,924,271 652,429 3,233,111 60,343,589 Total depreciable capital asset 144,494,616 20,477,025 7,541,923 157,429,718
Less, accumulated depreciation for: Buildings and improvements 17,666,365 1,785,566 446,780 19,005,151 Operating and transit related equipment 12,326,810 1,256,091 3,575,189 10,007,712 Other equipment, fixtures, and other vehicles 5,873,510 1,331,701 276,649 6,928,562 Revenue vehicles 29,778,958 4,961,726 3,233,111 31,507,573 Total accumulated depreciation 65,645,643 9,335,084 7,531,729 67,448,998
Total depreciable capital asset, net 78,848,973 11,141,941 10,194 89,980,720
Capital assets, net$ 100,884,345 $ 22,943,204 $ 18,283,046 $ 105,544,503
Depreciation expense during the years ended September 30, 2009 and 2008 was $11,482,036 and $9,335,084, respectively.
NOTE 5 PENSION PLANS
Defined Benefit Pension Plan
Substantially, all full-time employees of the Authority are participants in the Florida Retirement System (“the System”), a multiple-employer, cost-sharing public retirement system. The System is controlled by the State Legislature and covers approximately 621,175 full-time employees of various governmental units within the State of Florida.
The System provides for vesting benefits after six years of creditable service. Normal retirement benefits are available to employees who retire at or after age 62 with six or more years of service. Early retirement is available after six years of service with a 5% reduction of benefits for each year prior to the normal retirement age. Retirement benefits are based on age, average compensation and years-of-service credit where the average compensation is computed as the average of an individual’s highest five highest years of earnings. Employees are not required to contribute to this retirement system.
20 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 5 PENSION PLANS (CONTINUED)
The Authority has no responsibility to the System other than to make the periodic payments required by State Statutes. There is no employee obligation. The Florida Division of Retirement issues a publicly available financial report that includes financial statements and required supplementary information for the System. The report may be obtained by writing to Florida Division of Retirement, 2639 Monroe Street, Building C, Tallahassee, Florida 32399-1560.
Participating employer contributions are based upon statewide rates established by the State of Florida. The Authority is required to contribute at an actuarially determined rate. The current rates are regular employees, 9.85%, senior management, 13.12%, deferred retirement option program (DROP) 10.91%. The Authority’s contributions during the years ended September 30, 2009, 2008, and 2007 were $2,959,789, $2,748,207 and $2,780,252, respectively, equal to the required contributions for each year which is included as part of payroll taxes, fringe benefits and workers’ compensation in the accompanying Statements of Revenues, Expenses and Changes in Fund Net Assets.
Effective July 1, 1998, the Florida Legislature established the DROP. Under this program eligible employees are allowed to defer receipt of monthly retirement benefit payments while continuing employment with a System employer for a period not to exceed 60 months after electing to participate. Deferred monthly benefits are held in the Florida Retirement System Trust Fund and accrue interest.
Defined Contribution Plan
Beginning December 1, 2002, the System offers a second retirement plan option, the Florida Retirement System Investment Plan (“FRS Investment Plan”.) Under this plan the employer pays all contributions, which are a percentage of salary based on the System’s Membership Class. The employee makes investment elections within the investment funds chosen by the FSBA. The retirement benefit is based on the account balance, and the benefit is vested after one year of service. If an employee leaves the job, he or she can keep the benefit in the System, or transfer his or her account to another retirement plan. The employee can also elect to cash out the benefit when leaving but could be subject to tax penalties for taking early withdrawal. The employee in this plan is not eligible for DROP. All employees in the System’s defined benefit pension plan were given a choice of switching to the FRS Investment Plan within a designated time period.
NOTE 6 POST EMPLOYMENT BENEFITS (OTHER THAN PENSIONS)
The Authority is required by Florida Statute 112.0801 to allow retirees to buy healthcare coverage at the same group insurance rates that current employees are charged. Although retirees pay for healthcare at group rates, they are receiving a benefit because they can buy insurance at costs that are lower than the costs associated with the experience rating for their age bracket. The availability of this lower cost health insurance represents an “implicit subsidy” for retirees. However, the Authority has not recognized a liability for post employment benefits other than pensions due to the extremely low current and expected participation rate among retirees in the Authority’s fully insured health plan. The obligation was determined to be immaterial to the financial statements taken as a whole. 21 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 7 SELF INSURANCE AND LOSS CONTINGENCIES
The Authority is exposed to various risks of loss related to tort; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. During 1987, the Authority established a self-insurance program for general liability claims. Additionally, during 1990 the Authority established a self-insurance program for its workers’ compensation claims. Workers’ compensation claims are administered internally by the Authority and a third party administrator.
The liabilities currently provided are based upon the Authority’s estimate after considering the available facts. The claims estimation process involves substantial uncertainties, including the ultimate outcome of certain legal actions that may affect the adequacy of amounts provided; however, management feels the amounts provided are appropriate.
Self-insured claims, liability limitations and methods used to limit the exposures are as follows:
General liability claims - The Authority’s exposure for general liability, including vehicle, property and bodily injury, is subject to the State of Florida sovereign immunity laws, which provide loss limits of $100,000 per person and $200,000 per occurrence.
Workers’ compensation claims - The Authority self-insures workers' compensation claims; however, claims exceeding $500,000 are covered by an excess workers’ compensation liability policy.
Property damage insurance coverage - The Authority has an excess insurance policy for vehicles with a self-insured retention (“SIR”) of $500,000.
Unemployment compensation - The Authority is fully self-insured and charges are made quarterly as the Florida Department of Revenue, Florida Unemployment Compensation Fund, assesses the Authority based on actual claims.
Group medical - Effective January 1, 2003, employees of the Authority are covered under United Health Care, an independent insurance provider.
Settled claims have not exceeded commercial coverage in any of the past three years. The liability of $4,762,000 and $4,791,902 in self-insurance and loss contingencies reported at September 30, 2009 and 2008, respectively, is based on the requirements of GASB Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, which requires liability for claims be reported if information prior to the issuance of the financial statements indicate that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The Authority is party to certain claims that have not been included in this estimate because of the amount of any potential liability cannot be determined.
22 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 7 SELF INSURANCE AND LOSS CONTINGENCIES (CONTINUED)
Changes in the claims liability amount were:
General Workers' Liability Compensation Total
Balance at September 30, 2007$ 1,926,000 $ 2,762,000 $ 4,688,000 Current year claims and changes in estimates 1,595,679 135,245 1,730,924 Claim payments (941,534) (685,488) (1,627,022) Balance at September 30, 2008 2,580,145 2,211,757 4,791,902 Current year claims and changes in estimates 370,885 900,712 1,271,597 Claim payments (774,031) (527,468) (1,301,499) Balance at September 30, 2009$ 2,176,999 $ 2,585,001 $ 4,762,000
NOTE 8 CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended September 30, 2009, was as follows:
Due Within Beginning Balance Additions Reductions Ending Balance One Year
Self insurance and loss contingencies $ 4,791,902 $ 1,271,597 $ 1,301,499 $ 4,762,000 $ 2,421,860
Compensated absences 2,300,605 2,702,565 2,595,808 2,407,362 141,000
Total long-term liabilities $ 7,092,507 $ 3,974,162 $ 3,897,307 $ 7,169,362 $ 2,562,860
NOTE 9 UNRESTRICTED NET ASSETS
Designated Reserves
Unrestricted net assets include reserves have been designated by the Authority for capital projects in the amounts of $6,339,910 and $1,183,745, as of September 30, 2009 and 2008, respectively. These amounts are not externally restricted and do not represent measurable liabilities as of September 30, 2009 and 2008.
23 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 10 OPERATING LEASES
Lease Commitments
Lease expense for all operating leases recognized for the year ended September 30, 2009 and 2008 was $156,822 and $261,526, respectively, for office and maintenance equipment which are all cancelable leases.
NOTE 11 COMMITMENTS AND CONTINGENCIES
Environmental Clean-Up Costs
During the year ended September 30, 1988, the Authority discovered and began the clean-up of major underground diesel and unleaded gasoline fuel spills. Clean-up and associated costs incurred during the year ended September 30, 2009 and 2008 totaled approximately $22,100 and $500, respectively. Of the total costs incurred to date, $325,601 has been recouped from the State of Florida Department of Environmental Protection. The Authority is unable to reasonably estimate the additional clean-up costs, if any that will be incurred in the future relating to this incident; therefore no liability has been accrued.
Legal Actions
The Authority is a defendant in various legal actions, which in the opinion of management will not have a significant effect on the financial position of the Authority.
Resolution of Claim by the City of Tampa
The City and the Authority entered into a multi-year Interlocal Agreement dated September 30, 2004, effective through September 30, 2008, (“the Agreement”) whereby the City agrees to construct Pedestrian Access Improvement (“PAI”) projects, which are mutually agreed upon for a total not to exceed $1,700,000. The Agreement further details the annual obligations by the Authority through the fiscal year ending September 30, 2009. The Authority agreed to pay from available federal funding through grants and City impact fees for these PAI projects.
PAIs are defined as new, repairing or replacement sidewalk construction, landing pads and any mutually agreed upon new construction bus stop access and bus landing bays or improvements to existing bus stops and bus loading bays. The City is responsible for the construction and maintenance of these projects. Both entities concurred that the Agreement constitutes an in lieu funding mechanism that fulfills all obligations of the Authority to provide funding for the remaining balance of the streetcar project.
24 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS SEPTEMBER 30, 2009 AND 2008
NOTE 11 COMMITMENTS AND CONTINGENCIES (CONTINUED)
The payments stipulated in the Agreement were as follows:
The payments stipulated in the Agreement were as follows:
Immediate upon execution of agreement $ 450,000 After October 1, 2004 250,000 After October 1, 2005 250,000 After October 1, 2006 250,000 After October 1, 2007 250,000 After October 1, 2008 250,000 Total$ 1,700,000
Funds not expended in a particular fiscal year will carry over to the next fiscal year.
The amount remaining to be paid under the Agreement is approximately $730,000, summarized as follows:
Total amount approved through September 30, 2009$ 1,700,000 Less: Prior year accrual 970,000 Less: Current year expenditures - Amount paid to date 970,000 Remaining for future projects yet to be determined 730,000
Total remaining to be paid$ 730,000
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SUPPLEMENTARY INFORMATION
HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE PROJECTS YEAR ENDED SEPTEMBER 30, 2009 Accrued Accrued Revenue Revenue Federal CFDA Federal Grant Program or September 30, Program September 30, FEDERAL GRANTOR / PASS THROUGH GRANTOR PROGRAM TITLE Number Number Award Amount 2008 Receipts Expenditures 2009 Direct federal grantor awards - U.S. Department of Transportation - Federal Transit Administration Ybor Station 20.205 FL-15-X004$ 500,000 $ - $ - $ - $ - Bus Tracking and Communication 20.205 FL-26-0005 991,307 37,144 44,657 21,434 13,921 Bus Tracking and Communication 20.205 FL-26-0006 4,428,375 846,702 856,043 9,341 - CMAQ 20.205 FL-90-X527 261,474 15,373 26,267 21,534 10,640 Bus Purchase 20.500 FL-03-0167 6,969,757 - 6,325 8,065 1,740 Purchase Replacement Buses* 20.500 FL-03-0221 7,549,018 26,075 60,084 45,649 11,640 Fixed Guideway Funds* 20.500 FL-03-0237 239,462 12,600 22,875 14,844 4,569 Fixed Guideway Funds* 20.500 FL-03-0274 118,403 - - Bus Purchase* 20.500 FL-03-0296 1,138,134 - 144,431 144,431 - Fixed Guideway Funds* 20.500 FL-03-0298 116,010 12,713 12,713 - Bus Purchase* 20.500 FL-04-0023 1,451,440 - 1,451,440 1,451,440 - Bus Purchase* 20.500 FL-04-0074 3,290,930 - 945,952 1,652,128 706,176 Fixed Guideway Funds* 20.500 FL-05-0087 130,688 38,772 38,772 - Fixed Guideway Funds* 20.500 FL-05-0094 153,077 7,671 60,169 54,686 2,188 Purchase Streetcars* 20.507 FL-90-X295 18,945,519 9,479 548,073 685,107 146,513 STP Bus Purchase and Intermodal Study* 20.507 FL-90-X333 16,366,000 10,198 10,198 - FY99 Program of Projects* 20.507 FL-90-X360 11,048,966 - 33,087 33,191 104 FY00 Program of Projects* 20.507 FL-90-X396 7,539,218 22,511 24,129 8,087 6,469 FY01 Program of Projects* 20.507 FL-90-X424 7,401,004 6,500 39,360 48,868 16,008 FY02 Program of Projects* 20.507 FL-90-X453 8,084,316 6,437 16,300 9,863 - FY03 Program of Projects* 20.507 FL-90-X481 7,808,040 71,311 249,778 223,644 45,177 FY04 Program of Projects* 20.507 FL-90-X519 8,147,169 376,625 908,825 636,229 104,029 Bus and Related Equipment Purchase* 20.507 FL-90-X521 9,500,000 16,321 94,577 111,997 33,741 Park & Ride Lot - Northwest Transfer Ctr.* 20.507 FL-90-X528 435,000 488 488 - FY05 Program of Projects* 20.507 FL-90-X538 9,013,873 135,088 647,499 777,679 265,268 FY06 Program of Projects* 20.507 FL-90-X584 9,030,225 141,002 158,164 109,396 92,234 STP Funds Facilities and Improvements* 20.507 FL-90-X588 3,500,000 442,399 594,183 163,898 12,114 Bus Purchase* 20.507 FL-90-X619 100,000 - 100,000 100,000 - FY07 Program of Projects* 20.507 FL-90-X620 9,365,025 460,585 3,978,574 3,680,751 162,762 FY08 Program of Projects* 20.507 FL-90-X662 10,607,446 1,113,823 4,988,355 4,350,683 476,151 FY09 Program of Projects* 20.507 FL-90-X681 11,419,128 - 4,547,603 7,122,623 2,575,020 STP Funds Bus Purchase and Shelters* 20.507 FL-95-X010 1,800,000 - 1,500,000 1,500,000 - Streetcar Extension Phase Iia* 20.507 FL-95-X014 3,400,000 - - 274,257 274,257 ARRA Replacement and Expansion Vehicles* 20.507 FL-96-X013 15,153,702 - 1,656,768 1,911,508 254,740 Job Access and Reverse Commute (JARC) 20.516 FL-37-X023 99,118 - 19,893 27,473 7,580 On-Board Passenger Survey 20.522 FL-39-0003 78,776 - 8,577 78,776 70,199 Total direct federal grantor awards 3,809,817 23,794,159 25,277,582 5,293,240 Pass through federal grantor awards - Florida Department of Emergency Management (pass through) FY2007 IPP - Transit Security Grant Program 08DS-66-13-00-20-350, HART #A08032 97.075 97,727 17,369 17,369 22,890 22,890
Pinellas County Metropolitan Planning Organization (pass through) Job Access and Reverse Commute (JARC); HART #A08024 20.516 FL-37-X026 700,000 143,756 425,396 313,241 31,601 New Freedom; HART #A08024 20.521 FL-57-X004 300,000 - 54,432 54,432 - Total pass through federal grantor awards 161,125 497,197 390,563 54,491 Total federal grantor awards 3,970,942 24,291,356 25,668,145 5,347,731
See Notes to Schedule of Federal Awards and State Financial Assistance. 26 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE PROJECTS YEAR ENDED SEPTEMBER 30, 2009 (CONTINUED)
Accrued Accrued Revenue Revenue STATE FINANCIAL ASSISTANCE GRANTOR / PASS THROUGH State CSFA State Project Program or September 30, Program September 30, GRANTOR PROJECT TITLE Number Number Award Amount 2008 Receipts Expenditures 2009
Direct state financial assistance -
State of Florida Department of Transportation State Block Grant FY 09* 55.010 402251-18409 3,270,659 - 3,270,659 3,270,659 -
Park & Ride Lots 55.011 408209-19402 180,000 53,504 (53,504) - Park & Ride Lots 55.011 420740-19401 200,000 34,446 72,820 51,432 13,058 Park & Ride Lots 55.011 422720-19401 183,000 - 442 442 Subtotal 87,950 72,820 (1,630) 13,500
Fishhawk MacDill Express (24X) 55.012 418310-18401 85,000 7,967 7,967 - Fishhawk S.Brandon Exp (27X) 55.012 420739-18401 175,000 12,590 27,280 33,494 18,804 Subtotal 20,557 35,247 33,494 18,804
Urban Corridor Program (200X)* 55.013 410693-18404 220,000 45,160 150,981 123,777 17,956 Urban Corridor Program (200X)* 55.013 410693-18405 200,000 - 68,170 68,170 New Tampa/S.Pasco Cnty Exp (51X)* 55.013 420741-18402 280,000 34,288 124,331 141,271 51,228 New Tampa/S.Pasco Cnty Exp (51X)* 55.013 420741-18403 280,000 - 32,000 32,000 Subtotal 79,448 275,312 365,218 169,354
TIA Transfer Center Project 55.014 414594-19401 1,001,200 - 875 875 TIA-TEC Transfer Center Project 55.014 416264-19401 600,000 - 926 926 Subtotal - - 1,801 1,801
Total direct state transportation assistance 187,955 3,654,038 3,669,542 203,459
Florida Department of Emergency Management WS046 State 2004 Storm Frances WS046 36 - 36 36 - Total FDEM Assistance - 36 36 -
See Notes to Schedule of Federal Awards and State Financial Assistance. 27 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE PROJECTS FOR THE YEAR ENDED SEPTEMBER 30, 2009
NOTE 1 BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance Projects includes federal and state activity of the Authority and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A- 133, Audits of State and Local Governments and Non-Profit Organization and the Florida Single Audit Act, and Chapter 10.550, Rules of the Auditor General of the State of Florida.
NOTE 2 CONTINGENCIES
The federal and state programs shown in the Schedule of Expenditures of Federal Awards and State Financial Assistance Projects are subject to financial and compliance audits by grantor agencies, which, if instances of material noncompliance are found, may result in disallowable expenditures, and affect the Authority’s continued participation in specific programs. The amount, if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Authority expects such amounts, if any, to be immaterial.
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REGULATORY REPORTS
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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
Board of Directors Hillsborough Transit Authority a/k/a Hillsborough Area Regional Transit Authority Tampa, Florida
We have audited the financial statements of the Hillsborough Transit Authority, a/k/a Hillsborough Area Regional Transit Authority, or HART (“the Authority”), as of and for the years ended September 30, 2009 and 2008, and have issued our report thereon dated January 22, 2010. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Authority’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies.
A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Authority’s ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Authority’s financial statements that is more than inconsequential will not be prevented or detected by the entity’s internal control. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as Finding 2009-01, Finding 2009- 02, and Finding 2009-03 to be significant deficiencies in internal control over financial reporting.
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Board of Directors Hillsborough Transit Authority a/k/a Hillsborough Area Regional Transit Authority
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Authority’s internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as Finding 2009-01, Finding 2009-02, and Finding 2009-03 to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of non-compliance that are required to be reported under Government Auditing Standards.
We also noted certain matters that we reported to management of the Authority in a separate letter dated January 22, 2010.
The Authority’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit Authority’s responses and, accordingly, we express no opinion on them.
This report is intended solely for the information and use of the Board of Directors, management, federal and state awarding agencies, pass-through entities, and is not intended to be and should not be used by anyone other than these specified parties.
LarsonAllen LLP
Tampa, Florida January 22, 2010
30
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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
Board of Directors Hillsborough Transit Authority a/k/a Hillsborough Area Regional Transit Authority Tampa, Florida
Compliance
We have audited the compliance of Hillsborough Transit Authority, a/k/a Hillsborough Area Regional Transit Authority, or HART (“the Authority”), with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement, and the requirements described in the Florida Department of Financial Services State Projects Compliance Supplement, that are applicable to its major federal programs and state projects for the year ended September 30, 2009. The Authority’s major federal programs and state projects are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs and state projects is the responsibility of the Authority’s management. Our responsibility is to express an opinion on the Authority’s compliance based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the provisions of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter 10.550, Rules of the Auditor General of the State of Florida. Those standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General of the State of Florida, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state project occurred. An audit includes examining, on a test basis, evidence about the Authority’s compliance with those requirements and performing such other procedures, as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the Authority’s compliance with those requirements.
In our opinion, the Authority complied, in all material respects, with the requirements referred to above that are applicable to its major federal programs and state projects for the year ended September 30, 2009.
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Board of Directors Hillsborough Transit Authority a/k/a Hillsborough Area Regional Transit Authority
Internal Control Over Compliance The management of the Authority is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to its federal programs and state financial assistance projects. In planning and performing our audit, we considered the Authority’s internal control over compliance with requirements that could have a direct and material effect on to its major federal programs and state financial assistance projects in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over compliance. A control deficiency in an entity’s internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program and state financial assistance project on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to administer a major federal program and major state financial assistance project such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a major federal program and major state financial assistance project that is more than inconsequential will not prevented or detected by the entity’s internal control. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as Finding 2009-04 to be a significant deficiency. A material weakness is a significant deficiency, or combination of a significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program and state project will not prevented or detected y the entity’s internal control. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be a material weakness, as defined above. The Authority’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. We did not audit the Authority’s responses and, accordingly, we express no opinion on them. This report is intended solely for the information and use of the Board of Directors, management, federal and state awarding agencies, and pass-through entities, and is not intended to be and should not be used by anyone else other than these specified parties.
LarsonAllen LLP
Tampa, Florida January 22, 2010
32
HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2009
SECTION I – SUMMARY OF AUDITORS’ RESULTS:
Financial Statements Results
Type of auditors’ report issued: Unqualified
Internal control over financial reporting: Material weakness (es) indentified? Yes Significant deficiencies identified not considered to be a material weakness(es) None reported Noncompliance material to financial statements noted? No
Awards and Financial Assistance Federal State
Internal control over major programs: Material weakness (es) identified? No No Significant deficiencies identified not considered to be a material weakness(es) Yes None reported Type of auditors’ report issued on compliance for major programs? Unqualified Unqualified Any audit findings disclosed that are required to be reported in accordance with – Circular A-133 section .501 (a) None reported - Florida Single Audit Act - None reported
Identification of Major Programs
Federal Name of Program or Cluster CFDA 20.500/20.507 Federal Transit Cluster
State Name of Program or Cluster CSFA 55.010 Public Transit Block Grant Program CSFA 55.013 Transit Corridor Program
Federal State Dollar threshold used to distinguish between Type A and Type B programs: $770,044 $300,000 Auditee qualified as low-risk auditee? Yes N/A
33 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2009
SECTION II – FINANCIAL STATEMENT FINDINGS:
This section identifies the significant deficiencies, material weaknesses, and instances of noncompliance related to the financial statements that are required to be reported in accordance with paragraph 5.18 through 5.20 of Government Auditing Standards.
FINDING 2009-01
Criteria
Management is responsible for performing complete and timely fiscal year end accounting and financial reporting processes, including fiscal year end closing.
Condition
The closing process with respect to certain accounts was not completed in a timely manner. Additionally, certain reviews and analyses that should have been performed as part of the closing process were either not performed or did not identify misstatements within the Authority’s accounts.
Cause of Deficiency
By not executing a formal year end closing of the accounting records on a timely basis, account balances initially reported at September 30, 2009 were susceptible to material misstatement.
Possible Asserted Effect of the Deficiency
We identified misstated or misclassified material account balances contained within the financial information provided, which was subsequently corrected after audit inquiry.
Recommendation to Prevent Future Occurrence
We recommend that the Authority’s internal controls be supplemented through additional steps to the periodic closing of its accounting records in order to document that express verification, review and necessary approvals be made on a timely basis prior to commencement of the external audit. Personnel with an adequate understanding of the accounts should be assigned verification and review responsibility and the responsibility for insuring the overall completeness and timeliness of the closing process should be expressly designated. By implementing these controls to enhance accountability and establish formality in the review process, such errors may be prevented in future periods.
34 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2009
Views of Responsible Officials
The trial balance that was given to LarsonAllen when they began their audit field work was a draft trial balance and did not include final adjusted journal entries. LarsonAllen was notified at the beginning of the audit field work that the trial balance that they were receiving was not final and as items were completed we would communicate this to them and provide an updated trial balance along with copies of the journal entries. During FY2009 HART implemented a new ERP System and the issues encountered with this implementation caused the Finance Department staff to be behind with the monthly balance sheet reconciliations, and we were not fully caught up by the time the audit field work began. Beginning with FY2010, HART has implemented a year-end close checklist to enable us to be fully prepared for the start of audit field work.
FINDING 2009-02
Criteria
Management is responsible for establishing and maintaining internal controls over recurring payroll transactions related to accrual and remittance of employee salaries, benefits, and withholdings.
Condition
Year end balances in general ledger accounts related to payroll deductions from employees showed negative (in this case, debit) balances.
Cause of Deficiency
There were errors in the process to record certain payroll journal entries on a recurring basis. In addition, the related accounts were not timely reconciled, nor timely reviewed, by the appropriate level of management for accuracy.
Possible Asserted Effect of the Deficiency
Liabilities and expenses related to these accounts were materially misstated.
Recommendation to Prevent Future Occurrence
We recommend that the Authority review the recording of payroll-related transactions to determine what gave rise to the misstated balances and take corrective action. We further recommend that the Authority perform a reconciliation of all payroll-related accounts on a periodic basis (recommended each pay period, or at least monthly) to avoid potential recording errors and to accurately report the balances of these liability and expense accounts at year end.
35 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2009
Views of Responsible Officials
The Finance Department agrees that some of the Payroll Liabilities General Ledger accounts were not reconciled or reviewed prior to Larson Allen conducting the FY2009 field work. HART has reviewed all these accounts, made adjustments to correct the account to the accurate balance, and has put in place a new procedure for reconciling general ledger accounts.
Beginning in October 2009, we have created a monthly balance sheet general ledger account reconciliation checklist, detailing the account description, account number, date, and person who completed the account reconciliation. All general ledger balance sheet accounts will be analyzed and reconciled on a monthly basis.
FINDING 2009-03
Criteria
Management is responsible for accurately recording reserves associated with general liability and workers’ compensation claims in its self-insurance programs, both due and unpaid, and incurred but not reported (IBNR) incidents, based primarily on appropriate actuarial estimates.
Condition
Liabilities for current general liability and workers’ compensation claims had been recorded at September 30, 2009. Additional liabilities were recorded to reflect estimated reserves reported by independent actuarial providers as of September 30, 2009. Since the actuary’s estimate included both current claims payable and claims incurred but not reported (IBNR), the total accrual reported by management was materially inflated.
Cause of Deficiency
Year end analyses of the most significant liability accounts, self-insurance reserves, failed to detect material differences when compared to prior periods and the methodology previously followed.
Possible Asserted Effect of the Deficiency
Accrued liabilities and related expenses associated with self-insured general liability and workers’ compensation claims were materially overstated.
Recommendation to Prevent Future Occurrence
We recommend that the Authority perform a more comprehensive analysis and review of liabilities reported each fiscal year end associated with claims resulting from its self-insurance programs.
36 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2009
Views of Responsible Officials
HART agrees that the Risk Estimated Outstanding Claims were over accrued, once through the Loss Run Report and once through the 2009 Actuarial Report. We should have only accrued estimated outstanding claims to agree with the actuarial report. This has been corrected via the proposed journal entry from Larson Allen that HART agreed with and has been recorded in the general ledger. The next Actuarial Report is due in 2011 and the same methodology that was used in 2007 and 2009 will be used in 2011.
PRIOR YEARS’ COMMENTS
There were no material weaknesses, or instances of noncompliance related to the financial statements that required disclosure.
SECTION III – FEDERAL AWARD PROGRAM AND STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS:
This section should identify the audit findings required to be reported by section 510(a) of Circular A-133, the Florida Single Audit Act, or Chapter 10.550, Rules of the Auditor General of the State of Florida (for example significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs) as well as any abuse findings involving federal awards or state financial assistance that are material to a major federal program or state project.
We discovered a significant deficiency in relation to internal control over compliance as described in Finding 2009-04 below:
FINDING 2009-04
Criteria
OMB Circular A-133 Compliance Supplement Part 3, Compliance requirement for Allowable Costs/Cost Principles, states that allowable costs be necessary and reasonable for the performance and administration of Federal awards, allocable under the provisions of OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, authorized and not prohibited under state or local laws or regulations, direct charges to federal awards were for allowable costs, charges to cost pools used in calculating indirect costs rates were for allowable costs, the methods for allocating the costs are in accordance with the applicable cost principles, and produce an equitable and consistent distribution of costs.
37 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2009
Condition
Expenditures totaling $432,836 related to Paratransit salaries and wages were over-allocated to Grant No. FL-90-X681, FY09 Urbanized Area Formula (Cluster Program CFDA Numbers 20.500 and 20.507).
Cause of Deficiency
Errors in the allocation formula were not detected during the review process related to monthly or annual closings of the general ledger accounts and/or grant-related information.
Possible Asserted Effect of the Deficiency
Compliance with the Federal Transit Administration (FTA) stipulates that a recipient may expend no more than the allowable budget under the grant relating to Paratransit salaries and benefits. In this instance, Paratransit payroll expenditures were overstated. However, no instances of noncompliance resulted because the Authority was allowed to re-allocate these Paratransit personnel expenditures to a different cost segment (Preventive Maintenance) to absorb these overruns.
Recommendation to Prevent Future Occurrence
We recommend that internal control procedures, specifically over the review and approval of cost allocation methods and calculations, be enhanced to address the aforementioned error.
View of Responsible Officials
During 2009, HART received American Recovery and Reinvestment Act (ARRA) grants and applied $1,515,370 to the Paratransit revenue budget to reduce Ad Valorem taxes and to carry over to FY2010. In doing the adjustments, the amount of federal funds applied was overstated and not adjusted to the actual amount received.
During the monthly review, the Finance Department compares actual results vs. budget. This includes actual revenues vs. budgeted revenues, as well as actual expenses vs. budgeted revenues. This comparison was completed and any variances were noted. Additionally, HART has operating costs that are reimbursed by grantors. During the year, these operating costs should have been matched against grantor requirements to assure that these costs were not over allocated. In the future, these comparisons between costs and grantor requirements will be made.
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“MANAGEMENT LETTER” BASED ON RULE 10.554(1) (i) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA
To the Board of Directors Hillsborough Transit Authority a/k/a Hillsborough Area Regional Transit Authority Tampa, Florida
We have audited the basic financial statements of the Hillsborough Transit Authority, a/k/a Hillsborough Area Regional Transit Authority (“the Authority”), as of and for the fiscal year ended September 30, 2009 and have issued our report thereon dated January 22, 2010.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and the provisions of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter 10.550, Rules of the Auditor General of the State of Florida. We have issued our Independent Auditors’ 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, and Independent Auditors’ 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 The Florida Single Audit Act, and Schedule of Findings and Questioned Costs. Disclosures in that report, which are dated January 22, 2010, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the Chapter 10.550, Rules of the Auditor General, which governs the conduct of local governmental entity audits performed in the State of Florida. This letter includes the following information, which is not included in the aforementioned auditor’s reports or schedule: o Section 10.554(l)(i)l., Rules of the Auditor General, requires that we determine whether or not corrective actions have been taken to address findings and recommendations made in the preceding annual financial audit report. Corrective actions have been taken to address finding 2008-01 made in the preceding annual financial audit report. o Section 10.554(1)(i)2., Rules of the Auditor General, requires our audit to include a review of the provisions of Section 218.415, Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Authority complied with Section 218.415, Florida Statutes. o Section 10.554(1)(i)3., Rules of the Auditor General, requires that we address in the management letter any recommendations to improve financial management. In connection with our audit, we made two recommendations reported in Appendix B.
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Board of Directors Hillsborough Transit Authority a/k/a Hillsborough Area Regional Transit Authority o Section 10.554(1)(i)4., Rules of the Auditor General, requires that we address violations of provisions of contracts and grant agreements or abuse that have an effect on the financial statements that is less than material but more than inconsequential. In connection with our audit, we did not have any such findings. o Section 10.554(1)(i)5., Rules of the Auditor General, provides that the auditor may, based on professional judgment, report the following matters that have an inconsequential effect on financial statements, considering both quantitative and qualitative factors: (1) violations provisions of contracts or grant agreements, fraud, illegal acts, or abuse, and (2) control deficiencies that are not significant deficiencies. In connection with our audit, we identified one control deficiency not considered a significant deficiency reported in Appendix A. o Section 10.554(1)(i)6., Rules of the Auditor General, requires that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in this Management Letter, unless disclosed in the notes to the financial statements. The Authority was established under Chapter 163, Part V, Section 163.567, et seq., Florida Statutes, on October 3, 1979. The Authority does not have component units. o Section 10.554(1)(i)7.a., Rules of the Auditor General, requires a statement be included as to whether or not the local governmental entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes, and identification of the specific condition(s) met. In connection with our audit, we determined that the Authority did not meet any of the conditions described in Section 218.503(l), Florida Statutes. o Section 10.554(1)(i)7.b., Rules of the Auditor General, requires that we determine whether the annual financial report for the Authority for the fiscal year ended September 30, 2009 filed with the Florida Department of Financial Services pursuant to Section 218.32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2009. In connection with our audit, we determined that these two reports were in agreement. o Sections 10.554(1)(i)7.c. and 10.556(7), Rules of the Auditor General, require that we apply financial condition assessment procedures. In connection with our audit, we applied financial condition assessment procedures. It is management's responsibility to monitor the entity's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same.
Pursuant to Chapter 119, Florida Statutes, this “Management Letter” is a public record and its distribution is not limited. Auditing standards generally accepted in the United Stated of America require us to indicate that this letter is intended solely for the information and use of management, and the Florida Auditor General, Board of Directors, and applicable state agencies and is not intended to be and should not be used by anyone other than these specified parties.
LarsonAllen LLP Tampa, Florida January 22, 2010
40 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SEPTEMBER 30, 2009
SCHEDULE OF FINDINGS AND MANAGEMENT RESPONSES
APPENDIX A
Observation 2009-01
Criteria
Certain instances of non-compliance were identified in regards to the Authority’s Procurement Policies and Procedures over issuing purchase orders and initiating cash disbursements.
Condition
Within a sample of disbursements tested, we observed some instances in which purchase orders were prepared after invoices were received from vendors and in some cases after the goods and/or services were purchased and/or delivered.
Cause
Products and services were ordered and delivered before the purchase was authorized.
Effect
No inappropriate expenditures were identified relating to the purchase orders that were issued after purchases were initiated.
Recommendation
Management should reinforce the policies and procedures established by the Authority surrounding the cash disbursement process and ensure that all procedures are properly adhered to, particularly in regards to timely issuance of purchase orders.
Views of Responsible Officials
“Cash disbursement” does not seem to be the appropriate description of this activity; rather, the funds were obligated though purchase orders. The PO’s tested by LarsonAllen staff pertained to our fuel contract with JH Williams, Inc., which was fully and openly competed and awarded. The PO simply becomes the instrument to pay invoices as the vendor bills off the contract. There was no unauthorized purchasing activity regarding these invoices. Purchase Orders from the old Fleet-Net system had to be brought into the Proactis system, and so the discrepancies in the dates on PO’s and invoices might be due to this very arduous conversion.
41 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SEPTEMBER 30, 2009
SCHEDULE OF FINDINGS AND MANAGEMENT RESPONSES
APPENDIX B
Recommendation 2009-01
Retaining Documentation Evidencing Single Audit Compliance
Upon testing of certain material single audit compliance requirements relating to the Federal Transit Cluster (CFDA Numbers 20.500 and 20.507), we noted that, upon our inquiry, some documentation was unable to be located by personnel responsible for the grants. Specifically, the missing documentation included a number of certified payrolls submitted by a contractor relating to Davis Bacon Act testing as well as certifications or other similar evidence ensuring vendors were not suspended or debarred parties.
To ensure that compliance is maintained for all relevant compliance requirements affecting federal programs and state projects, we recommend that management prepare written policies and procedures regarding procurement and administration of federal awards and state financial assistance, including instructions to retain all records associated with grant compliance matters. All staff involved in these processes should be familiar with the policies and procedures, and management should monitor that such procedures are being consistently followed.
Management’s Response:
There are existing written procedures addressing the need to retain for the contract files Davis-Bacon wage compliance and payroll certification reports from contractors, but we agree that they can be updated and reinforced through training of staff. This training has been occurring and pre-dates the auditor’s recommendation being communicated to the Procurement Director, beginning with his tenure on Nov. 2, 2009. With respect to the debarment and suspension search and determination of good standing within the Excluded Parties Listing System (EPLS) maintained by the General Services Administration, this requirement only pertains to federal grant funded purchases. The FTA Third Party Contracting Circular 4220.1F does not require that the web page from EPLS.gov be printed out and retained for the contract file, although it is a good practice. The procurement staff member must, however, certify that the debarment/suspension search was conducted and a determination of non-exclusion exists, for federal grant funded purchases.
Recommendation 2009-02
Accounts Receivable Collection Efforts
As of September 30, 2009, there was nearly $100,000 of receivables aged over ninety days primarily relating to subrogated insurance claim payments that certain insurance providers owed the Authority. We recommend that the Authority issue, maintain and monitor a policy outlining various steps to be taken to facilitate collections on overdue receivables.
42 HILLSBOROUGH TRANSIT AUTHORITY a/k/a HILLSBOROUGH AREA REGIONAL TRANSIT AUTHORITY SEPTEMBER 30, 2009
SCHEDULE OF FINDINGS AND MANAGEMENT RESPONSES
APPENDIX B
Management’s Response:
The Risk Department bills third parties for damages since HART is self-insured. Most times the party affected were from individuals without insurance. Staff will continue to send monthly reminder bills to each outstanding debtor. Staff will also pursue collecting through the Small Claims Court to insure all areas for payment is pursued.
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SECTION III
STATISTICAL SECTION
______Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -18-
STATISTICAL SECTION
This part of the Authority’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the Authority’s financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the Authority’s most significant local revenue source, the property tax.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the Authority’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the Authority provides and the activities it performs.
Miscellaneous Information
This item provides supplemental data and statistics of interest to readers of the financial statements.
______Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -19-
Statistical Section
Financial Trends
Net Assets by Component (FY2009 - FY2002)
Changes in Net Assets (FY2009 - FY2003)
Revenues by Function/Program (FY2009 – FY2000)
Expenses by Function/Program (FY2009 – FY2000)
Property Taxes (FY1998 – FY2009)
______Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -20-
HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
NET ASSETS BY COMPONENT FY2009 – FY2002
2009 2008 2007 2006 2005 2004 2003 2002
Business-type Activities Invested in capital assets, net of $108,873,524 $105,544,503 $100,884,345 $94,438,179 $91,029,537 $ 91,953,546 $93,735,491 $80,806,942 related debt Restricted for Self Insurance and 4,762,000 4,791,902 4,688,000 4,759,928 0 0 0 0 Loss Contingencies Unrestricted 20,591,185 18,516,813 15,470,679 10,792,700 12,655,313 10,939,693 8,449,758 4,582,453 Total business-type activities net $134,226,709 $128,853,218 $121,043,024 $109,990,807 $103,684,850 $102,893,239 $102,185,249 $85,389,395 assets
NOTES: (1) FY2002 Reported as Governmental Fund types. (2) In FY2003, the Authority adopted GASB Statement No. 34 as a single Enterprise Fund.
______Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -21-
HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
NET ASSETS BY COMPONENT INVESTED IN CAPITAL ASSETS, NET OF RELATED DEBT 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 2009 2008 20072006 20052004 2003 2002
NET ASSETS BY COMPONENT RESTRICTED FOR SELF INSURANCE AND LOSS CONTINGENCIES $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2009 2008 2007 2006 2005 2004 2003 2002
NET ASSETS BY COMPONENT UNRESTRICTED $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 2009 2008 20072006 20052004 2003 2002
______Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -22-
HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT CHANGES IN NET ASSETS FY2009 - FY2003 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003 Operating revenues: Passenger fares $12,188,502 $12,119,376 $10,757,203 $10,342,004 $9,041,498 $7,987,861 $7,149,636 Charter fares $8,958 $8,536 $2,218 $6,316 $13,432 $92,426 $17,886 Advertising $591,970 $554,270 $532,250 $482,917 $463,110 $343,821 $242,167 Total operating revenues $12,789,430 $12,682,182 $11,291,671 $10,831,237 $9,518,040 $8,424,108 $7,409,689 Operating expenses: Salaries $27,394,880 $25,202,229 $25,849,868 $23,631,683 $22,092,721 $18,140,615 $16,563,410 Payroll taxes, fringe benefits and workers' $14,079,042 $12,267,620 $12,560,943 $10,941,290 $9,442,857 $6,899,164 $4,815,278 compensation Fuel and lubricants $6,422,889 $5,294,121 $4,875,594 $4,200,877 $3,515,541 $2,022,337 $1,627,750 Contracted services $3,271,938 $3,204,302 $2,953,046 $2,673,728 $2,279,214 $4,483,635 $4,354,562 Parts and supplies $3,810,671 $3,534,469 $3,594,222 $3,031,564 $2,805,589 $1,819,765 $1,645,891 Insurance premiums, self insurance costs and $1,936,301 $3,136,144 $1,105,924 $1,225,591 $1,949,227 $2,663,215 $1,374,196 settlements Utilities $1,027,029 $887,666 $732,533 $674,603 $601,353 $570,692 $546,780 Marketing and promotion $848,547 $666,462 $841,890 $735,051 $843,638 $642,438 $868,880 Other $2,259,634 $1,639,704 $1,982,014 $1,747,392 $1,628,148 $1,537,634 $1,131,925 Operating expenditures reimbursed by grants $3,737,616 $1,135,302 $1,505,947 $2,473,473 $1,414,518 $3,211,740 $3,344,976 Total operating expenses before depreciation $64,788,547 $56,968,019 $56,001,981 $51,335,252 $46,572,806 $41,991,235 $36,273,648 Operating (loss) before depreciation ($51,999,117) ($44,285,837) ($44,710,310) ($40,504,015) ($37,054,766) ($33,567,127) ($28,863,959) Depreciation $11,482,036 $9,335,084 $8,144,251 $7,791,245 $7,400,882 $7,641,164 $7,741,655 Operating (loss) ($63,481,153) ($53,620,921) ($52,854,561) ($48,295,260) ($44,455,648) ($41,208,291) ($36,605,614) Non-operating revenues: Operating assistance grants Federal $8,922,109 $4,445,445 $4,226,858 $4,564,443 $5,385,927 $2,694,133 $3,569,651 State $3,669,407 $3,694,543 $3,569,393 $3,455,026 $3,574,740 $3,600,063 $3,523,230 Local $1,257,145 $1,475,375 $1,784,338 $1,509,868 $2,924,821 $1,832,989 $1,059,157 Property tax proceeds, net $36,106,704 $36,586,961 $36,423,195 $29,813,313 $25,740,799 $23,180,746 $21,124,567 Investment income $86,189 $736,964 $1,588,849 $1,161,011 $498,345 $171,635 $153,425 Other income $282,419 $583,170 $596,646 $431,255 $286,833 $324,389 $398,378 Non-operating revenues $50,323,973 $47,522,458 $48,189,279 $40,934,916 $38,411,465 $31,803,955 $29,828,408 (Loss) before capital grants ($13,157,180) ($6,098,463) ($4,665,282) ($7,360,344) ($6,044,183) ($9,404,336) ($6,777,206) Capital grants: Federal $16,746,036 $13,486,392 $14,479,395 $12,515,084 $5,116,600 $9,618,018 $19,957,940 State $171 $424,348 $276,133 $226,236 $968,857 $193,503 $3,103,855 Local $1,784,464 ($2,083) $961,972 $924,981 $750,337 $300,805 $511,265 Total capital grants $18,530,671 $13,908,657 $15,717,500 $13,666,301 $6,835,794 $10,112,326 $23,573,060 Increase in net assets $5,373,491 $7,810,194 $11,052,218 $6,305,957 $791,611 $707,990 $16,795,854 Net assets, beginning of year $128,853,218 $121,043,024 $109,990,807 $103,684,850 $102,893,239 $102,185,249 $85,389,395 Net assets, end of year $134,226,709 $128,853,218 $121,043,025 $109,990,807 $103,684,850 $102,893,239 $102,185,249
NOTES: (1) In FY2003, the Authority adopted GASB Statement No. 34 as a single Enterprise Fund.
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HART ‐ CHANGES IN NET ASSETS $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 2009 2008 2007 2006 2005 2004 2003
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
REVENUES BY FUNCTION/PROGRAM (BUS, PARATRANSIT, STREETCAR) FY2009 – FY2000
2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
FARES $12,197,460 $12,127,912 $10,759,421 $10,348,320 $9,054,930 $8,080,287 $7,167,522 $6,308,685 $6,366,398 $6,155,491 ADVERTISING $591,970 $554,270 $532,250 $482,917 $463,110 $343,821 $242,167 $170,833 $62,875 $14,206 FEDERAL ASSISTANCE $8,922,109 $4,445,445 $4,226,858 $4,564,443 $5,385,927 $2,694,133 $3,569,651 $1,142,205 $966,523 $413,491 STATE ASSISTANCE $3,669,407 $3,694,543 $3,569,393 $3,455,026 $3,574,740 $3,600,063 $3,523,230 $3,505,580 $3,512,415 $3,235,582 LOCAL ASSISTANCE $1,257,145 $1,475,375 $1,784,338 $1,509,868 $2,992,352 $1,832,989 $1,059,157 $761,197 $1,337,887 $1,799,061 PROPERTY TAX $36,106,704 $36,586,961 $36,423,195 $29,813,313 $25,740,799 $23,180,746 $21,124,567 $19,604,163 $16,958,159 $15,664,986 INTEREST INCOME $86,189 $736,964 $1,588,849 $1,161,011 $498,345 $112,909 $75,878 $149,751 $348,931 $537,327 OTHER INCOME $282,419 $583,170 $596,646 $431,255 $286,833 $383,115 $475,925 $1,556,506 $384,700 $200,898 SUBTOTAL OPERATING $63,113,403 $60,204,640 $59,480,950 $51,766,153 $47,997,036 $40,228,063 $37,238,097 $33,198,920 $29,937,888 $28,021,042 FEDERAL CAPITAL $16,746,036 $13,486,392 $14,479,394 $12,515,084 $5,116,600 $9,618,018 $19,957,940 $20,930,833 $29,965,858 $14,932,000 STATE CAPITAL $171 $424,348 $276,133 $226,236 $968,857 $193,503 $3,103,855 $3,211,733 $1,152,532 $3,632,957 LOCAL CAPITAL $1,784,464 -$2,083 $961,972 $924,981 $682,806 $300,805 $511,265 $881,100 $769,471 $788,955 OTHER CAPITAL $0 $0 $0 $0 $0 $0 $0 $0 $1,272,822 $4,945,578 SUBTOTAL CAPITAL $18,530,671 $13,908,657 $15,717,499 $13,666,301 $6,768,263 $10,112,326 $23,573,060 $25,023,666 $33,160,683 $24,299,490 GRAND TOTAL $81,644,074 $74,113,297 $75,198,449 $65,432,454 $54,765,299 $50,340,389 $60,811,157 $58,222,586 $63,098,571 $52,320,532
NOTES: (1) FY2002 through FY1997 -- Reported as Governmental Fund types. (2) In FY2003, the Authority adopted GASB Statement No. 34 as a single Enterprise Fund. (3) Change in presentation of Other Capital consistent with Enterprise Fund reporting. (4) FY2002 restated in FY2003 audited financials consistent with GASB Statement No. 34.
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FARE REVENUE
$15,000,000
$10,000,000
$5,000,000
$0 2009200820072006200520042003200220012000
PROPERTY TAX REVENUE
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$0 2009200820072006200520042003200220012000
TOTAL OPERATING REVENUE
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0 2009200820072006200520042003200220012000
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
EXPENSES BY FUNCTION/PROGRAM (BUS, PARATRANSIT, STREETCAR) FY2009 – FY2000
2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 BUS OPERATIONS $28,894,301 $25,674,357 $25,124,269 $21,600,223 $20,714,748 $17,895,403 $16,608,159 $15,992,088 $16,660,827 $14,302,147 VEHICLE & FACILITIES MAINTENANCE $11,675,250 $10,756,591 $10,633,951 $10,192,485 $9,294,416 $7,499,606 $6,958,330 $6,556,789 $6,841,660 $6,581,285 ADMINISTRATIVE AND OTHER $19,100,528 $15,422,058 $15,681,100 $15,517,269 $13,173,813 $13,691,923 $9,690,730 $7,301,638 $7,234,425 $7,335,402 PARATRANSIT OPERATIONS $3,121,805 $2,996,917 $2,520,759 $2,077,806 $1,741,080 $1,314,344 $1,137,757 $1,383,336 $1,427,291 $449,729 STREETCAR OPERATIONS $1,996,663 $2,118,096 $2,041,902 $1,947,470 $1,648,749 $1,589,960 $1,878,672 $256,463 $0 $0 TOTAL OPERATING LESS DEPRECIATION $64,788,547 $56,968,019 $56,001,981 $51,335,252 $46,572,806 $41,991,235 $36,273,648 $31,490,314 $32,164,203 $28,668,563 DEPRECIATION $11,482,036 $9,335,084 $8,144,251 $7,791,245 $7,400,882 $7,641,164 $7,741,655 $6,597,718 $0 $0 TOTAL OPERATING $76,270,583 $66,303,103 $64,146,232 $59,126,497 $53,973,688 $49,632,399 $44,015,303 $38,088,032 $32,164,203 $28,668,563
NOTES: (1) FY2002 through FY1997 -- Reported as Governmental Fund types. (2) In FY2003, the Authority adopted GASB Statement No. 34 as a single Enterprise Fund. (3) Other Expenses includes FTA Ineligibles, Risk Management Funds and Operating Expenses reimbursed by Capital Grants. (4) In FY2005, the Authority changed its accounting practice of recording operating expenditures reimbursed by grants as a contra-account to expense. The impact of this change is reflected in Other Expenses.
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
BUS OPERATIONS EXPENSE
$30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 200920082007200620052004200320022001
VEHICLE & FACILITIES MAINTENANCE EXPENSE
$12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 200920082007200620052004200320022001
ADMINISTRATIVE & OTHER EXPENSES
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0 200920082007200620052004200320022001
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
PARATRANSIT OPERATIONS EXPENSE
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0 200920082007200620052004200320022001
STREETCAR OPERATIONS EXPENSE
$2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2009 2008 2007 2006 2005 2004 2003 2002
TOTAL OPERATING EXPENSE LESS DEPRECIATION
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0 200920082007200620052004200320022001
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
PROPERTY TAXES FY1998 - FY2009
PROPERTY TAX REVENUE BY YEAR BUS AND PARATRANSIT ONLY Year Prop Tax $ Percent Total Percent of Change Revenue Total 1998 Actual $13,701,743 0.00% $21,775,118 62.92% 1999 Actual $14,590,656 6.49% $22,834,802 63.90% 2000 Actual $15,664,986 7.36% $25,429,977 61.60% 2001 Actual $16,958,159 8.26% $26,929,041 62.97% 2002 Actual $19,604,163 15.60% $27,729,743 70.70% 2003 Actual $21,124,567 7.76% $29,456,061 71.72% 2004 Actual $23,180,746 9.73% $36,060,733 64.28% 2005 Actual $25,740,799 11.04% $44,895,524 57.33% 2006 Actual $29,813,313 15.82% $49,433,021 60.31% 2007 Actual $36,603,195 22.77% $57,028,316 64.18% 2008 Actual $36,869,961 0.73% $57,861,450 63.72% 2009 Actual $36,106,704 -2.07% $59,883,781 60.29%
PERCENT CHANGE IN PROPERTY TAX REVENUE BY YEAR FY'S 1999 TO 2009
25.00%
20.00%
15.00%
10.00%
5.00% 0.73% 8.26% 11.04% 7.76% 15.60% 15.82% 7.36% 22.77% 6.49% 9.73% 0.00% al al al al u u u u ctual ct ctual ct ctual ct ct A Actual A A Actual A A Actual A Actual A ‐5.00% 0 3 6 8 0 0 0 00 1999 20 2001 2002 20 2004 2005 20 2007 2 2009 2.07% ‐
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PROPERTY TAX REVENUE BY YEAR FY'S 1999 TO 2009
$40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000
$5,000,000 $25,740,799 $21,124,567 $16,958,159 $23,180,746 $29,813,313 $15,664,986 $0 $14,590,656 $36,869,961 l l l l l l l $36,603,195 l $36,106,704
a al a a $19,604,163 a a a a a al u u u u u u u u u u ct t ct ct t ct t A Act Ac A A Ac A Act Actual Ac Act 2 5 0 00 1999 2000 2001 20 2003 2004 2 2006 2007 2008 2009
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Statistical Section
Revenue Capacity
County-Wide Assessed Value and Actual Value of Taxable Property (FY2008 - FY1996)
Principal Taxpayers (2008)
Property Tax Levies and Collections (FY2008 - FY1997)
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HILLSBOROUGH COUNTY, FLORIDA COUNTY WIDE ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY FY 2008-1996 (in millions of dollars)
Estimated Actual Value Exemptions Assessed Value Fiscal Year Ended Real Personal Real Personal Real Personal September 30, Property Property Property Property Property Property 2008 100,891 9,120 24,489 1,905 76,407 7,215 2007 121,130 8,940 40,670 1,430 80,460 7,510 2006 110,790 8,770 39,760 1,460 71,030 7,320 2005 87,320 8,640 29,910 1,550 57,410 7,090 2004 72,710 8,010 23,750 1,280 48,960 6,730 2003 64,670 7,480 20,740 1,150 43,930 6,330 2002 59,060 7,440 19,050 1,170 40,010 6,270 2001 53,100 7,530 16,620 1,190 36,480 6,330 2000 46,000 7,280 14,210 1,180 31,790 6,090 1999 41,380 7,810 12,660 1,930 28,720 5,880 1998 38,340 7,480 12,080 1,920 26,260 5,570 1997 35,280 7,160 11,260 1,910 24,020 5,260 1996 32,970 6,890 10,780 1,980 22,190 4,910
SOURCE: Hillsborough County, Florida
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
$140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996
TAXABLE PROPERTY EXEMPTIONS
$2,000
$1,500
$1,000
$500
$0 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996
ASSESSED PROPERTY VALUES
$100,000
$80,000
$60,000
$40,000 $20,000
$0 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HILLSBOROUGH COUNTY, FLORIDA PRINCIPAL TAXPAYERS
Percent FY2008 of Total FY2008 Taxes Taxes Taxable Taxpayer Levied Rank Levied Value Tampa Electric Company $31,180,755 1 1.61 $1,435,499,437 Verizon Florida Inc. $25,856,729 2 1.33 $1,190,391,956 Hillsborough County Aviation Authority $12,007,958 3 0.62 $552,822,308 Mosaic Fertilizer, LLC $8,101,308 4 0.42 $372,967,976 Highwoods/Florida Holdings LP $6,454,767 5 0.33 $297,164,530 Camden Operating LP $5,758,769 6 0.30 $265,122,177 Liberty Property $5,285,932 7 0.27 $243,353,710 Post Apartment Homes LP $5,244,804 8 0.27 $241,460,259 Wal-Mart $4,309,143 9 0.22 $198,384,303 Tampa Port Authority $4,071,424 10 0.21 $187,440,197 Total $108,271,589 5.58 $4,984,606,853
SOURCE: Hillsborough County Tax Collector
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HILLSBOROUGH COUNTY, FLORIDA PROPERTY TAX LEVIES AND COLLECTIONS FY2008 - FY1997 (in millions of dollars)
Taxes Levied Collections in Fiscal Tax for the Fiscal Collected within the Subsequent Year Year Year Fiscal Year of the Levy Years Total Collections to Date 2008 2007 $801,724 $795,084 99.2% $1,321 $796,405 99.3% 2007 2006 $814,609 $808,864 99.3% $618 $809,482 99.4% 2006 2005 $701,730 $696,591 99.3% $802 $697,393 99.4% 2005 2004 $614,133 $608,746 99.1% $2,232 $610,978 99.5% 2004 2003 $553,131 $547,054 98.9% $1,227 $548,281 99.1% 2003 2002 $508,616 $500,980 98.5% $644 $501,624 98.6% 2002 2001 $482,663 $474,844 98.4% $2,797 $477,641 99.0% 2001 2000 $429,559 $422,776 98.4% $2,887 $425,663 99.1% 2000 1999 $396,193 $388,930 98.2% $980 $389,910 98.4% 1999 1998 $370,500 $365,501 98.7% $1,060 $366,561 98.9% 1998 1997 $342,837 $338,329 98.7% $935 $339,174 98.9% 1997 1996 $319,628 $316,201 98.9% $864 $317,065 99.2%
SOURCE: Hillsborough County, FL, Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2008
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Statistical Section
Demographic and Economic Information
Demographic and Economic Statistics (2008 – 1997)
Principal Employers (2008)
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HILLSBOROUGH COUNTY, FLORIDA DEMOGRAPHIC AND ECONOMIC STATISTICS 2008 - 1997
Public Total Personal Personal High School Public Income Income Median Graduation School Unemployment Year Population (millions) per Capita Age Rates Enrollment Rate 2008 1,224,520 ** ** ** ** 200,000 7.8 2007 1,174,727 ** ** ** 79.1 188,766 4.2 2006 1,161,882 40,758 35,079 36 77.3 185,185 3.4 2005 1,134,413 38,204 33,677 36 79.5 193,669 3.6 2004 1,101,697 35,247 31,994 36 79.3 184,642 4.1 2003 1,073,069 32,486 30,274 35 75.8 177,539 5.1 2002 1,052,271 31,071 29,527 36 77.5 171,249 5.3 2001 1,027,104 29,977 29,186 35 74.4 166,491 3.9 2000 998,948 28,646 28,558 35 71.4 160,983 3.4 1999 953,500 26,483 26,889 36 69.5 156,349 2.9 1998 939,070 24,754 25,648 36 72.9 153,351 2.8 1997 915,900 22,730 24,081 33 74.0 150,235 3.4 (b & e) (b) (b) (e) (d) (d) (c)
SOURCES: (b) U.S. Department of Commerce, Bureau of Economic Analysis (c) U.S. Bureau of Labor Statistics (d) Florida Department of Education (e) U.S. Census Bureau ** Data not available
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
DEMOGRAPHICS AND ECONOMIC STATISTICS DEMOGRAPHICS AND ECONOMIC STATISTICS POPULATION PERSONAL INCOME (IN MILLIONS)
1,400,000 $50,000 1,200,000 $40,000 1,000,000 800,000 $30,000 600,000 $20,000 400,000 $10,000 200,000 0 $0 8 7 6 2 1 0 9 8 7 7 6 5 4 2 0 8 7 00 00 00 00 00 00 99 200 200 200 200520042003 2 2 2 199 199 199 2008200 2 200 2 2003 2 2001200 1999199 1
DEMOGRAPHICS AND ECONOMIC STATISTICS DEMOGRAPHICS AND ECONOMIC STATISTICS PERSONAL INCOME PER CAPITA MEDIAN AGE
$40,000 $40 $35,000 $35 $30,000 $30 $25,000 $25 $20,000 $20 $15,000 $15 $10,000 $10 $5,000 $5 $0 $0 6 5 4 3 2 1 0 8 7 6 3 2 1 0 9 8 7 00 00 00 00 00 00 00 20082007200 2 2 2 200 200 200 199919981997 200 200 2 20052004200 2 2 2 199 199 199
DEMOGRAPHICS AND ECONOMIC STATISTICS DEMOGRAPHICS AND ECONOMIC STATISTICS PUBLIC HIGH SCHOOL GRADUATION RATE TOTAL SCHOOL ENROLLMENT
80.00 200,000 70.00 60.00 150,000 50.00 40.00 100,000 30.00 20.00 50,000 10.00 0.00 0 8 7 6 5 2 1 0 8 7 004 003 00 004 20082007200620052 2 200220012000199919981997 200 200 200 2 2 2003 200 200 200 1999199 199
DEMOGRAPHICS AND ECONOMIC STATISTICS UNEMPLOYMENT RATE
8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 8 6 5 3 0 8 7 00 007 00 004 00 001 00 99 99 2 2 2 200 2 2 20022 2 19991 1
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HILLSBOROUGH COUNTY, FLORIDA PRINCIPAL EMPLOYERS
2008 Employers Employees Rank Hillsborough County School District 24,692 1 Hillsborough County Government 10,442 2 Tampa International Airport 7,500 3 Verizon Communications 7,000 4 MacDill Air Force Base 6,656 5 University of South Florida 6,000 6 Tampa General Hospital 5,842 7 Publix Food Centers 4,984 8 Veterans Administation Hospital 4,529 9 City of Tampa Government 4,502 10
SOURCE: Tampa Chamber of Commerce
City of Tampa Government Veterans Administation Hospital Publix Food Centers Tampa General Hospital University of South Florida MacDill Air Force Base Verizon Communications Tampa International Airport Hillsborough County Government Hillsborough County School District
‐ 0 ,000 ,00 ,000 5,000 10,000 15 20,000 25 30
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Statistical Section
Operating Information
Full Time Equivalent Employees by Function/Program (FY2009 – FY2003)
HART Service Ridership Summary (September 2009)
Historic Ridership (Bus, Streetcar, Paratransit)
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HILLSBOROUGH TRANSIT AUTHORITY FULL TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM FY2009 - FY2003 STAFFING SCHEDULE
Budgeted Full-Time Equivalent Employees 2009 2008 2007 2006 2005 2004 2003 Function/Program General Administration Executive Office 5.0 4.0 4.0 4.0 4.0 6.0 6.0 Planning, Development & Public 19.5 35.0 37.0 37.0 37.0 36.0 36.0 Relations Administration 35.0 23.0 24.0 23.0 20.0 0.0 0.0 Finance & Budget 26.5 31.0 31.0 31.0 31.0 42.0 37.0 Bus Operations Administration 32.0 30.0 34.0 34.0 34.0 36.0 38.0 Bus Operators 365.0 343.0 362.0 330.0 317.0 296.0 296.0 Customer Service 17.0 12.3 12.3 12.3 12.3 12.0 13.0 Safety, Security & Training 4.0 0.0 0.0 0.0 0.0 0.0 0.0 Maintenance Administration 17.0 13.0 15.0 15.0 15.0 13.0 13.0 Inventory Control 10.0 9.0 9.0 9.0 9.0 8.0 8.0 Vehicle 87.5 81.0 81.0 81.0 79.0 71.5 70.5 Facilities 33.5 31.0 31.0 31.0 31.0 31.5 28.5 Subtotal Bus 652.0 612.3 640.3 607.3 589.3 552.0 546.0 Paratransit Operations Administration 13.0 6.7 6.7 5.7 4.7 3.0 0.0 Paratransit Operators 45.0 36.0 36.0 30.0 28.0 30.0 30.0 Subtotal Paratransit 58.0 42.7 42.7 35.7 32.7 33.0 30.0 Streetcar Operations Administration 5.0 6.0 6.0 6.0 6.0 3.0 0.0 Conductors 10.0 14.0 14.0 14.0 14.0 14.0 0.0 Maintenance 10.0 9.0 9.0 9.0 9.0 8.5 0.0 Subtotal Streetcar 25.0 29.0 29.0 29.0 29.0 25.5 0.0 Total 735.0 684.0 712.0 672.0 651.0 610.5 576.0 ______Hillsborough Transit Authority – FY2009 Comprehensive Annual Financial Report Page -42-
HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
FULL TIME EQUIVALENT EMPLOYEES ALL MODES
800
600
400
200
0 2009 2008 2007 2006 2005 2004 2003
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT HART SERVICE RIDERSHIP SUMMARY – MONTHLY COMPARISON (SEPTEMBER 2009)
Ridership, FY 2009 vs FY 2008 Monthly Ridership Comparison HART Service Complete Fiscal Year September September FY 2009 FY 2008 FY 2009 FY 2008 % Change Ridership Ridership % Change
Fixed Route Bus 11,638,548 12,044,758 -3.4% 1,008,005 1,103,813 -8.7% TECO Streetcar 462,704 440,738 5.0% 22,230 21,873 1.6% ADA Paratransit 99,004 101,426 -2.4% 8,464 9,698 -12.7% Wheelchairs on Fixed Route 46,137 44,457 3.8% 4,127 3,960 4.2% Bikes on Buses 201,130 247,960 -18.9% 17,925 20,845 -14.0% U-Pass Program 334,091 310,482 7.6% 29,148 35,257 -17.3% HART Vanpool 82,975 91,822 -9.6% 6,003 7,972 -24.7%
FY 2009 vs. FY 2008 Monthly Ridership Comparison Complete Fiscal Year September September Fixed Route Detail FY 2009 FY 2008 FY 2009 FY 2008 Number of Weekdays 252 253 21 21 Number of Saturdays 58 58 5 5 Number of Sundays 52 52 4 4 No Service Days inc. Emergency 3 3 0 0 Total Service Days 365 366 30 30 % Change % Change Weekday Ridership 9,696,909 10,113,457 -4.1% 848,320 930,774 -8.9% Weekday Express Ridership 277,186 271,004 2.3% 23,440 28,124 -16.7% Saturday Ridership 1,096,839 1,103,115 -0.6% 90,482 97,806 -7.5% Sunday Ridership 567,614 557,182 1.9% 45,763 47,109 -2.9% % Change % Change Weekday Average Ridership 38,480 39,974 -3.7% 40,396 44,323 -8.9% Weekday Average Express Ridership 1,100 1,071 2.7% 1,116 1,339 -16.7% Saturday Average Ridership 18,911 19,019 -0.6% 18,096 19,561 -7.5% Sunday Average Ridership 10,916 10,715 1.9% 11,441 11,777 -2.9%
Vehicle Hours 622,366 606,245 2.7% 54,079 49,768 8.7% Revenue Hours 581,600 568,232 2.4% 50,610 46,636 8.5% Vehicle Miles 8,449,218 8,069,108 4.7% 732,746 667,954 9.7% Revenue Miles 7,421,599 7,108,885 4.4% 644,529 588,721 9.5%
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT HART SERVICE RIDERSHIP SUMMARY – LOCAL ROUTES (SEPTEMBER 2009) Ridership, FY 2009 vs. FY 2008 Ridership, FY 2009 vs. FY 2008 Route productivity, Passengers per Revenue Hour (Year to Date) Local Routes Monthly Complete Fiscal Year 2009 2008 March Passengers Passengers Routes Performing Below % % per Revenue per Revenue 60% Group Average 2009 2008 Change 2009 2008 Change Hour Hour 2 - Nebraska Avenue 105,126 119,441 -12.0% 1,211,602 1,334,657 -9.2% 32.68 33.63 34 - Hillsborough Ave. 61,678 64,434 -4.3% 714,345 725,650 -1.6% 30.56 28.63 1 - Florida Avenue 80,228 78,852 1.7% 873,708 886,018 -1.4% 29.11 31.95 12 - 22nd St. 65,045 74,099 -12.2% 774,703 849,430 -8.8% 27.39 26.71 6 - UATC via 56th St. 80,596 85,271 -5.5% 881,682 913,440 -3.5% 25.60 29.30 7 - Citrus Park 43,840 54,645 -19.8% 549,471 562,617 -2.3% 24.85 24.46 5 - UATC/USF via 40th St. 41,047 49,994 -17.9% 481,074 503,048 -4.4% 23.96 26.85 9 - 15th St. 42,261 53,301 -20.7% 517,732 524,392 -1.3% 23.13 23.78 10 - Cypress St. 7,286 7,817 -6.8% 74,479 100,158 -25.6% 20.90 24.66 15 - Columbus Dr. 26,948 31,675 -14.9% 319,822 338,621 -5.6% 20.30 21.17 39 - Busch Blvd. 46,023 48,891 -5.9% 508,784 542,386 -6.2% 19.19 23.61 16 - Waters Ave. 12,949 14,794 -12.5% 157,454 157,427 0.0% 18.07 19.14 32 - M.L. King Blvd. 36,413 42,816 -15.0% 445,628 440,166 1.2% 17.96 17.03 18 - 30ths St/Univ. Area 32,587 35,960 -9.4% 369,127 379,570 -2.8% 17.21 18.58 37 - West Brandon/Faulkenburg 18,182 19,852 -8.4% 208,844 195,255 7.0% 17.02 15.58 14 - Armenia Ave. 13,309 12,737 4.5% 138,784 151,596 -8.5% 16.88 16.65 36 - Dale Mabry/Himes Ave. 38,219 38,304 -0.2% 435,426 426,870 2.0% 16.81 18.32 57 - UATC - Netpark 12,503 13,428 -6.9% 139,523 130,665 6.8% 16.50 15.36 19 - Port Tampa 33,473 38,808 -13.7% 412,381 428,785 -3.8% 16.17 17.66 8 - Progress Village/Brandon 33,247 36,369 -8.6% 396,726 398,129 -0.4% 15.59 17.27 45 - UATC/Westshore* 36,393 36,518 -0.3% 418,103 333,644 25.3% 15.57 15.52 33 - Fletcher Ave. 10,324 12,194 -15.3% 133,157 139,448 -4.5% 15.04 15.61 30 - Town & Country via Kennedy Blvd. 51,053 43,717 16.8% 545,594 501,636 8.8% 13.90 16.36 4 - Palma Ceia/MacDill AFB 9,842 9,338 5.4% 102,366 110,448 -7.3% 13.01 14.67 41 - Sligh Ave. 8,725 9,345 -6.6% 92,075 89,438 2.9% 12.90 12.49 46 - Davis Island/Palmetto Beach/Brandon 6,534 7,536 -13.3% 76,567 79,350 -3.5% 11.87 12.21 X 31 - S. Hillsborough County 3,901 4,187 -6.8% 43,025 54,860 -21.6% 7.82 8.47 X 44 - UATC via Habana* - 1,684 NA - 73,454 -100.0% NA 13.41 999 - Public Service - - NA 1,049 59 1678.0% NA NA 60% of Local System Avg System Total 957,732 1,056,007 -9.3% 11,023,231 11,371,217 -3.1% 20.94 22.2 12.564 Blue = Routes performing 75% or higher above the local system average 75% of Local System Avg Red = Routes performing 60% or lower than the local system average 15.705 *Routes 44 & 45 combined 3/30/08
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Passengers per Revenue Hour
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
...... e t t. t t. r. a rg e e * ty u S lvd. re u pa ve. ve on n Park h S s S Ave b m ore A d u enue t s B n h r A ven e us D h v. A ia Av s h ran Av A 56th 40 r b n es Av Netparkt Ta st g Co a a p ni e m - r e h d 9 - 15th ySt. aters King Blvd. ulke via C olum . m W nnedy Blvd. - Sli ch/B ori 12 - 22nd S Fa e 1 a roug rask C 7 - Citrus - Busc - W St/U ATC 4 e o - C 9 s on/ - Ar bry/Hi 9 - Po TC/ B eb - Fl AT 10 - 3 16 th d a U 1 A sb 1 15 2 - M.L0 n 14 33 - Fletche to l C/USF via 3 a M y via K il - N - U T - 3 le 57 - - U r 2 6 lma Ceia/MacDillmet AFB. H 34 - Hillsborough Ave. 8 a 45 S 1 st Br unt - - UA e o /Pal 5 6 - D 3 4 - Pa nd 31 - W 8 - Progress Village/Brandon a 7 n & C l 3 w s is I v 0 - To 3 - Da 6 4 Local Routes
FY 2009 FY 2008
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HART SERVICE RIDERSHIP SUMMARY – EXPRESS ROUTES (SEPTEMBER 2009)
Ridership, FY 2009 vs. FY 2008 Ridership, FY 2009 vs. FY 2008 Route productivity, Passengers per Revenue Hour (Year to Date)
Monthly Complete Fiscal Year 2009 2008 Routes Performing Below
60% Group Average September Passengers per Passengers per Express Routes 2009 2008 % Change 2009 2008 % Change Revenue Hour Revenue Hour 20X - Lutz Express 1,377 1,820 -24.3% 18,096 16,929 6.9% 28.73 26.55 27X - South Brandon Express 2,402 2,467 -2.6% 25,359 24,619 3.0% 19.47 17.57 28X - Plant City/Seffner Express 1,257 1,484 -15.3% 15,617 15,521 0.6% 18.90 18.22 22X - North Brandon Express 1,557 2,276 -31.6% 20,153 22,894 -12.0% 18.55 19.54 47LX - South Shore Limited Express 2,061 2,353 -12.4% 23,979 19,911 20.4% 16.58 14.33 23X - Temple Terrace Express 762 1,103 -30.9% 10,844 12,285 -11.7% 15.94 16.09 50X - Citrus Park Express 1,026 1,146 -10.5% 12,700 11,837 7.3% 13.97 12.87 51X - New Tampa Express 1,134 1,862 -39.1% 15,107 14,881 1.5% 12.67 12.38 24X - FishHawk - MacDill Express 4,159 4,175 -0.4% 45,269 37,190 21.7% 12.46 19.66 25X - MacDill AFB Express 4,718 5,955 -20.8% 52,573 52,991 -0.8% 11.89 18.14 200X - Clearwater Express - R 1,535 1,566 -2.0% 17,850 15,404 15.9% 9.34 7.98 59LX - Town N' Country Limited Express - R 1,141 1,448 -21.2% 14,620 16,171 -9.6% 6.70 6.81 X 35LX - Brandon - South Shore Limited Express 311 469 -33.7% 5,019 5,941 15.5% 3.82 4.06 X 26X - Carrollwood Express** - - NA - 2,971 NA NA 52LX - New Tampa via UATC Express * - R 0 0 NA - 1,459 NA NA 60% of Express System Average System Total 23,440 28,124 -16.65% 277,186 271,004 2.3% 12.87 13.72 7.722
Blue = Routes performing 75% or higher above the local system average 75% of Local System Avg. Red = Routes performing 60% or lower than the local system average 9.653 *Service discontinued 11/18/07 **Service discontinued 3/30/08 R = Reverse Commute Route
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Passengers per Revenue Hour
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
s s s s s ss s s s ss R R R e res ress e re re ress - es ss** - p p p s - ss e xpress es e Exp Express E Ex r ess * n rk Expre ll xp ace Exp a E xpr - Lutz Expr ndon Expr r acDi E ando a er ill AFB Ex C X Br Limited T M ater 0 e e - w imited Expr e Limited Expr AT 2 th th Br l k L Citrus P New Tampa or t City/Seffneror Ex - aw lear y h n Shor emp - MacD S ia U Sou N h T 0X X C - t 5 shH untr a v X u 51X - 25 o p 2X - Fi 26X - Carrollwood Expr 27 2 ' C 23X - 200X - - South Tam 28X - Pla 4X - n 7LX - So 2 4 Town N - X - New LX - Brando L 9 5 X 52 5L 3 Express Routes FY 2009 FY 2008
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HART Service Ridership Summary September 2009 Currently Active Routes Only
Y-T-D FY '08 Y-T-D Y-T-D Riders per Riders per % Change Ridership Trips Trip Trip 6 USF via 56th Street 881,682 23,626 37.32 41.81 -10.74% 2 Nebraska Avenue 1,211,602 36,651 33.06 40.48 -18.33% 34 Hillsborough Avenue 714,345 23,378 30.56 32.28 -5.35% 1 Florida Avenue 873,708 29,960 29.16 32.08 -9.09% 7 Citrus Park/Downtown 549,471 19,134 28.72 28.69 0.09% 9 15th Street 517,732 18,624 27.80 28.49 -2.41% 39 Busch Blvd 508,784 18,566 27.40 34.18 -19.82% 12 22nd Street 774,703 28,421 27.26 30.47 -10.53% 5 UATC/USF via 40th Sreet 481,074 18,884 25.48 26.14 -2.53% 36 Dale Mabry/Himes Ave. 435,426 17,705 24.59 26.25 -6.31% 15 Columbus Drive 319,822 14,304 22.36 23.11 -3.25% 8 Progress Villiage/Brandon 396,726 18,807 21.09 22.84 -7.66% 18 30th Street/University Area/Livingston 369,127 17,658 20.90 22.23 -5.95% 45 UATC/Westshore 418,103 20,143 20.76 20.78 -0.10% 32 M L King Blvd. 445,628 22,111 20.15 19.38 3.97% 19 Port Tampa 412,381 21,478 19.20 21.06 -8.85% 37 West Brandon/Netpark 208,844 11,347 18.41 16.45 11.90% 30 Town N' Country 545,594 31,412 17.37 23.47 -26.01% 14 Armenia Avenue 138,784 8,093 17.15 18.01 -4.77% 16 Waters Avenue 157,454 9,182 17.15 16.45 4.23% 57 UATC/Temple Terrace/Netp@rk 139,523 8,576 16.27 14.79 9.97% 33 Fletcher Avenue 133,157 9,067 14.69 15.36 -4.37% 4 Palma Ceia/MacDill AFB 102,366 7,336 13.95 15.02 -7.12% 31 South Hillsborough County 43,025 3,287 13.09 15.78 -17.07% 41 Sligh Avenue 92,075 7,336 12.55 11.85 5.91% 46 Davis Islands/Palmetto Beach 76,567 6,576 11.64 11.84 -1.66% 10 Cypress St. 74,479 7,083 10.52 13.25 -20.66% Total For Group (Does Not Include 11,022,182 458,745 24.03 24.20 -0.72% Streetcar) 75% of Group Average 18.02 18.15 -0.72% 60% of Group Average 14.42 14.52 -0.72%
800 TECO Streetcar 462,704 33,053 14.00 11.73 19.34%
83 University Area Connector 206,471 21,976 9.40 9.67 -2.87% 89 WestShore/Britton Plaza Connector 37,054 7,585 4.89 5.70 -14.36% 88 Town N' Country Connector-West 19,222 3,965 4.85 6.70 -27.69% 96 Uptown/Downtown Connector 45,911 9,907 4.63 3.99 16.05% 87 South County - Wimauma 13,433 3,405 3.95 3.78 4.26% 97 Weekend Downtown Shuttle 14,335 5,617 2.55 2.88 NA Total For Group 336,426 52,455 6.41 4.39 46.02% 75% of Group Average 4.81 3.29 46.02% 60% of Group Average 3.85 2.64 46.02%
______Hillsborough Transit Authority – FY2008 Comprehensive Annual Financial Report Page -49- HART Service Ridership Summary September 2009 Currently Active Routes Only (Con't)
Y-T-D FY '08 Y-T-D Y-T-D Riders per Riders per % Change Ridership Trips Trip Trip 27X South Brandon Express 25,359 1,259 20.14 18.58 8.42% 20X Lutz Express 18,096 1,007 17.97 15.81 13.69% 47LX Southshore Limited Express 23,979 1,367 17.54 16.75 4.71% 22X North Brandon Express 20,153 1,212 16.63 17.15 -3.05% 24X Fishhawk-MacDill AFB Express 45,269 2,831 15.99 23.13 -30.85% 25X Mac Dill AFB Express 52,573 3,360 15.65 21.48 -27.14% 28X Plant City/Seffner Express 15,617 1,008 15.49 14.80 4.70% 51X New Tampa Express 15,107 1,008 14.99 13.75 9.02% 50X Citrus Park Express 12,700 1,008 12.60 11.27 11.80% 23X Temple Terrace Express 10,844 1,008 10.76 12.09 -11.01% 59LX Town 'n Country Limited Express (Reverse 14,620 2,014 7.26 7.63 -4.84% Commute Route) 200X Clearwater Express (Reverse Commute Route) 17,850 2,520 7.08 5.88 20.37% 35LX Brandon/Southshore Limited Express 5,019 1,008 4.98 4.24 17.43% Total For Group 277,186 20,610 13.45 9.81 37.14% 75% of Group Average 10.09 7.35 37.14% 60% of Group Average 8.07 5.88 37.14% Total for System 11,635,794 531,810 21.88 19.71 11.01%
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HISTORIC RIDERSHIP
Bus Ridership* Year Ridership * % Change FY 2000 Actual 8,190,594 N/A FY 2001 Actual 8,557,829 4.5 FY 2002 Actual 8,182,661 (4.4) FY 2003 Actual 8,191,329 0.1 FY 2004 Actual 8,884,566 8.5 FY 2005 Actual 10,040,492 13.0 FY 2006 Actual 10,697,621 6.5 FY 2007 Actual 11,147,660 4.2 FY 2008 Actual 12,044,758 8.0 FY 2009 Actual 11,638,548 (3.4) *From GFI Ridership Database
Paratransit Ridership* Year Ridership * % Change FY 2001 Actual 40,189 N/A FY 2002 Actual 35,542 (11.6) FY 2003 Actual 34,745 (2.2) FY 2004 Actual 40,158 15.6 FY 2005 Actual 49,277 22.7 FY 2006 Actual 63,165 28.2 FY 2007 Actual 82,439 30.5 FY 2008 Actual 101,426 23.0 FY 2009 Actual 97,044 (4.3) *From GFI Ridership Database
Streetcar Ridership* Year Ridership * % Change FY 2003 Actual 420,038 N/A FY 2004 Actual 425,614 1.3 FY 2005 Actual 434,498 2.1 FY 2006 Actual 389,771 (10.3) FY 2007 Actual 437,612 12.3 FY 2008 Actual 440,738 0.7 FY 2009 Actual 462,461 4.9 *From GFI Ridership Database
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
HISTORIC BUS RIDERSHIP (IN MILLIONS)
14 12 10 8 6 4 2 0 2000200120022003200420052006200720082009
HISTORIC PARATRANSIT RIDERSHIP (IN THOUSANDS)
120 100 80 60 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009
HISTORIC STREETCAR RIDERSHIP (IN THOUSANDS)
480 460 440 420 400 380 360 340 2003 2004 2005 2006 2007 2008 2009
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Statistical Section
Miscellaneous Information
Miscellaneous Statistics - HART
Employment Indicators – Hillsborough County, FL
Population – Hillsborough County, FL
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HILLSBOROUGH TRANSIT AUTHORITY FY2008 COMPREHENSIVE ANNUAL FINANCIAL REPORT
MISCELLANEOUS STATISTICS - HART
Date Authority Created October 3, 1979
Date Authority Began Operations 1980
Form of Government Board of Directors, Chief Executive Officer
Board of Directors 12
Service Area Square Miles 1,068 square miles
Type of Tax Support Property Tax
Property Tax (Millage/Rate) .4682 mil (0.4682) (2009 Adopted Budget)
Number of Fixed Routes 27 local routes, 10 express routes, 6 circulator routes, 3 limited express routes, 100 percent wheelchair/bicycle accessible buses and vans
Number of Bus Stops Approximately 4,100
Number of Buses in Peak Service 162 (plus 30 Paratransit vans)
Facilities ° 21st Avenue Operations and Maintenance Facility ° 23 park-and-ride lots ° 2 transit centers (Marion Transit Center and University Area Transit Center) ° 8 transfer centers (Britton Plaza, Westshore Plaza, Northwest Tampa, West Tampa, Netp@rk Transfer Center, Yukon Transfer Center, University Mall) ° Marion Transitway ° Ybor Station (streetcar operations, streetcar maintenance facility, and administrative staff) ° Dick Greco Plaza
Passenger Shelters 400
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
EMPLOYMENT INDICATORS – HILLSBOROUGH COUNTY, FL
Hillsborough County has a diversified economic base, including large service, manufacturing and retail trade sectors. Hillsborough County's largest industrial sectors include the Administration/Support/Waste Management and Remediation Services, Retail Trade, and the Health Care and Social Assistance sectors. The principal employers serving the county are the Hillsborough County School Board and the Hillsborough County Government.
Employment by Industry - 2007 Employees Professional & Business Services 172,660 Government 79,148 Retail Trade 72,902 Education & Health Services 68,869 Unpaid Family Workers 64,697 Finance, Insurance & Real Estate 61,341 Leisure & Hospitality 59,322 Construction 42,251 Wholesale Trade 32,920 Manufacturing 32,069 Information 22,554 Other Services 21,913 Transportation, Warehouse & Utilities 20,357 Agriculture, Forestry, Fishing & Hunting 12,620 Mining 444 Totals 764,067
Source: Hillsborough County Florida, Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 2007
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HILLSBOROUGH TRANSIT AUTHORITY FY2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
POPULATION – HILLSBOROUGH COUNTY, FL
Hillsborough County is the fourth most populous county in the state of Florida. As of April 2007 the County's population was estimated at 1,204,770, an increase of 2.4 percent from 2006. Between 2000 and 2007, the County's population increased by 20.6 percent. Hillsborough County's population is projected to be 1,394,600 by the year 2015.
A majority of the County's year 2007 population (804,340 or 66.8 percent) lives in the unincorporated part of the county. Population grew at an average annual percentage rate of 3.2 percent between year 2000 and 2007 in the unincorporated Hillsborough County. Communities in the unincorporated Hillsborough County with increasing population growth were Balm/Wimauma, Ruskin/Greater Sun City Center, Thonotosassa, and Tampa Palms/Hunter's Green. The median age for Hillsborough County in 2006 was 36 years.
YEAR SOURCE POPULATION INCREASE 1950 (a) 249,894 1960 (a) 397,788 59.2% 1970 (a) 490,265 23.2% 1980 (a) 646,960 32.0% 1990 (a) 834,054 28.9% 2000 (b) 998,948 19.8% 2001 (b) 1,027,436 2.9% 2002 (b) 1,055,807 2.8% 2003 (b) 1,083,520 2.6% 2004 (b) 1,115,960 3.0% 2005 (b) 1,142,850 2.4% 2006 (b) 1,177,060 3.0% 2007 (b) 1,174,727 -0.2% 2008 (a) 1,224,520 4.2%
Source: Hillsborough County Florida, Comprehensive Annual Financial Report, Fiscal Year Ended September 30, 2008
(a) US Census Bureau (b) Hillsborough County City-County Planning Commission, estimate
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