Comprehensive Annual Financial Report
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COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Years Ended June 30, 2016 & 2015 Atlanta, Georgia REDEFINED Comprehensive Annual Financial Report For the Years Ended June 30, 2016 and 2015 Atlanta, Georgia Prepared by the Department of Finance Gordon Hutchinson, Chief Financial Officer INTENTIONALLY LEFT BLANK IV TABLE OF CONTENTS INTRODUCTORY SECTION-Unaudited Letter of Transmittal ........................................................................................................................................IX Certificate of Achievement ...........................................................................................................................XV Board of Directors .........................................................................................................................................XVI GM & Executive Staff .................................................................................................................................. XVII FY2016 Organizational Chart ................................................................................................................... XVIII Rail Map ............................................................................................................................................................XX FINANCIAL SECTION Report of Independent Auditor ......................................................................................................................1 Management’s Discussion and Analysis .....................................................................................................3 Statements of Net Position ..........................................................................................................................10 Statements of Revenues, Expenses & Changes in Net Position ........................................................12 Statements of Cash Flows ...........................................................................................................................13 Notes to the Financial Statements .............................................................................................................14 Supplemental Schedule of Changes in the Net Pension Liability and Related Ratios ........... 55-58 Supplemental Schedule of Employer Contributions ....................................................................... 59-60 Supplemental Schedule of Revenue and Expenses–Budget vs. Actual (Budget Basis) ...............61 Notes to the Supplemental Schedule ........................................................................................................62 STATISTICAL SECTION-Unaudited Description of Categories .............................................................................................................................65 FINANCIAL TRENDS Condensed Summary of Net Position .......................................................................................................69 Summary of Revenues, Expenses and Changes in Net Position .......................................................70 Sales Tax Collection and Usage .................................................................................................................71 Revenues and Operating Assistance Comparison to Industry Trend Data ......................................72 Total Expenses by Function .........................................................................................................................73 Total Operating Expenses by Object .........................................................................................................74 Operating Expenses Comparison to Industry Trend Data ....................................................................75 REVENUE CAPACITY Revenues by Source ......................................................................................................................................79 Farebox Recovery Percentage ....................................................................................................................80 Sales & Use Tax Rates Direct and Overlapping Governments ............................................................81 TABLE OF CONTENTS DEBT CAPACITY Sales & Use Tax Revenue Bond Debt Coverage ....................................................................................85 Sales & Use Tax Revenue Bond Debt Service Limit ..............................................................................86 Sales & Use Tax Revenue Bond Debt Service Limit Last Ten Fiscal Years ......................................87 Sales & Use Tax Revenue Bond Debt Ratios ...........................................................................................88 Computation of Overlapping Debt .............................................................................................................89 DEMOGRAPHIC & ECONOMIC INFORMATION Trends in Personal Income ...........................................................................................................................93 Population and Employment ........................................................................................................................94 Unemployment Rates ....................................................................................................................................95 Top Ten Corporate Employers in the Atlanta Region .............................................................................96 OPERATING INFORMATION Transit Service Effort & Accomplishments Per Mile ...............................................................................99 Transit Service Effort and Accomplishments Per Hour ...................................................................... 100 Unlinked Passenger Changes .................................................................................................................. 101 Fare Structure ............................................................................................................................................... 102 Vehicles Operated in Maximum Service ................................................................................................ 103 Number of Employees ................................................................................................................................ 104 Miscellaneous Statistical Data ................................................................................................................. 105 SINGLE AUDIT Report of Independent Auditor on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards ........................................................................... 109 Report of Independent Auditor on Compliance for Each Major Program and on Internal Control Over Compliance required by the Uniform Guidance ..................................... 111 Schedule of Expenditures of Federal Awards ....................................................................................... 113 Notes to the Schedule of Expenditures of Federal Awards ............................................................... 114 Schedule of Findings and Questioned Costs ...............................................................................115-116 Summary Schedule of Prior Audit Findings ..................................................................................117-118 I NTRODUCT I ON INTENTIONALLY LEFT BLANK VIII Letter of Transmittal December 20, 2016 2424 Piedmont Rd., N.E. Atlanta, GA 30324-3330 404-848-5000 Board of Directors Metropolitan Atlanta Rapid Transit Authority Ladies and Gentlemen: We are pleased to respectfully submit the Metropolitan Atlanta Rapid Transit Authority’s (MARTA’s) 23rd Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2016 to the MARTA Board of Directors, the citizens of this area and all interested in its financial condition. MARTA is a public body corporate and joint public instrumentality of the City of Atlanta and the counties of Fulton, DeKalb, Cobb, Clayton and Gwinnett by action of the General Assembly of the State of Georgia for the purposes of planning, constructing, financing and operating a public transportation system. This report is published to fulfill the financial reporting requirements of the MARTA Act. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to MARTA for its CAFR for the fiscal year ended June 30, 2015. The Certificate of Achievement is a prestigious national award, recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized CAFR, whose contents conform to program standards. Such CAFR must satisfy both generally accepted accounting principles (GAAP) and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current report continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA. This endeavor is our continued commitment to MARTA’s Standard of Excellence and this report consists of management’s representations concerning the financial position of MARTA. Consequently, management assumes full