Working ST06 SINGLE AUDIT REPORT

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• Publié par: Imko
• Nombre de lectures: 58
• Langue: English

Extrait

Central Puget Sound
Regional Transit Authority
Single Audit Reports for the
Year Ended December 31, 2006
CENTRAL PUGET SOUND REGIONAL TRANSIT AUTHORITY




TABLE OF CONTENTS

Audited Financial Statements

Management’s Discussion and Analysis ..................................................................................1
Independent Auditors’ Report.................................................................................................17
Basic Financial Statements
Balance Sheets..................................................................................................................19
Statements of Revenues, Expenses and Changes in Net Assets .....................................20
Statements of Cash Flows21
Notes to Financial Statements ...........................................................................................23

Single Audit Reports

Independent Auditors’ Report on Compliance and on Internal Control Over Financial
Reporting Based on An Audit of Financial Statements Performed in Accordance
With Government Auditing Standards ..............................................................................41
Independent Auditors’ Report on Compliance With Requirements Applicable to
Each Major Program and on Internal Control Over Compliance in Accordance
With OMB Circular A-133 .................................................................................................43
Supplemental Schedule of Expenditures of Federal Awards ..............................................45
Supplemental Schedule of Federal Award Findings and Questioned Costs .....................46








CENTRAL PUGET SOUND REGIONAL TRANSIT AUTHORITY



AUDITED FINANCIAL STATEMENTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the years ended December 31, 2006 and 2005

Management’s Discussion and Analysis (“MD&A”) presents a narrative overview and analysis of the
financial activities of the Agency for the years ended December 31, 2006 and 2005. The MD&A is
designed to assist readers of financial statements in focusing on significant financial activities and issues
and to identify any significant changes. As this information is presented in summary form, it should be
read in conjunction with the financial statements and footnotes as a whole.
Central Puget Sound Regional Transit Authority, a public corporation acting under the service name of
Sound Transit, is a regional transit authority implementing and providing a high-capacity transportation
system throughout parts of King, Pierce and Snohomish counties through commuter rail (“Sounder”), light
rail (“Link”) and a regional express bus system (“ST Express”). The implementation of the initial phase of
the voter-approved regional transportation system (“Sound Move”) is scheduled for a 20-year period,
ending in 2016. In anticipation of a full funding grant agreement for University Link, this represents an
extension of the Ten-Year Regional Transit System Plan previously scheduled to complete in 2009. The
agency’s activities to date have been concentrated on implementing service in all three transit modes and
on the design, environmental review and construction of its capital projects.
Sound Transit’s financial statements have reflected a growth in operating revenues and expenses each
year, as well as growth in capital projects in progress and property, vehicles and equipment. As the Agency
has not reached its full service levels and is in the construction phase on its light rail project, major sources
of revenue exceed expenses resulting in a rising net asset position.
Financial Highlights
Total operating revenues were $21.5 million for 2006, an increase of 8.2% from the prior year.
Passenger fares increased by $1.6 million from the prior year as a result of large ridership gains on
Sounder and ST Express.
Total operating expenses, excluding depreciation and gains or losses on disposal of assets, were $107.6
million, an increase of $9.8 million or 10.0% from the prior year.
Operations and maintenance expenses increased by $8.0 million. This increase reflects the full
year impact of service increases on Sounder, a 4% increase in service levels on ST Express, as
well as unit cost increases in the price of fuel and labor.
General and administrative expenses, after allocations to capital projects and operations and
maintenance, increased by $1.8 million. This reflects a write-off of overhead for the permanent
Tukwila Sounder station, the construction of which has been delayed to the next phase of Sound
Move.
Non-operating revenues (expenses) were up $38.7 million from the prior year, reflecting higher tax
revenues that increased by $23.5 million and higher investment income which increased by $11.2
million, as the economy continues to perform strongly, rising interest rates in 2005 and available cash
balances remained high.
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Management’s Discussion and Analysis, continued

Capital contributions decreased by $14.8 million, with federal, state and local contributions to Sound
Transit increasing by $2.1 million and the value of transfers to other governments increasing by $16.9
million.
Total net assets at December 31, 2006, were $2.6 billion, an increase of $302.6 million or 12.9% from
2005. This increase was up from an increase in 2005 of $285.7 million or 13.9% from 2004. The
higher increase in net assets in 2006 from 2005 is a result of higher net non-operating revenues
(expenses) less higher contributions to other governments.
Total capital assets, net of accumulated depreciation, were $2.9 billion at December 31, 2006, an increase of
$593 million or 26.0% from 2005. The increase in total capital assets reflects an increase in capital
projects in progress as construction moves forward on the Link light rail projects, additional land
acquisitions for light rail and further progress on the Sounder track and facilities projects. In 2006,
$227.6 million in rail access right expenditures and completed projects were transferred to depreciable
assets or expensed as capital contributions to other governments.

Overview of the Financial Statements
Sound Transit’s financial statements are prepared in conformity with United States generally accepted
accounting principles (“GAAP”) as applied to government units. The 2006 financial statements are
presented using the economic resource measurement focus and accrual basis of accounting. As Sound
Transit comprises a single proprietary fund, no fund level financial statements are shown.
In accordance with GAAP, all revenues are recognized in the period in which they are earned and expenses
are recognized in the period in which they are incurred. All assets and liabilities associated with the
operation of Sound Transit are included in the Balance Sheets, and depreciation of capital assets is
recognized in the Statements of Revenues, Expenses and Changes in Net Assets.
The financial statements provide both long-term and short-term information about Sound Transit’s overall
financial status as well as Sound Transit’s net assets, segregated by invested in capital assets (net of related
debt), restricted and unrestricted. Net assets are the difference between Sound Transit’s assets and
liabilities and over time may serve as a useful indicator of Sound Transit’s financial position. The financial
statements also include notes that provide additional information that is essential to a full understanding of
the information provided.
Financial Analysis
Net Assets
Sound Transit’s total net assets at December 31, 2006, were $2.6 billion, an increase of $302.6 million or
12.9% from 2005 (see Table A-1). Total assets increased $300.3 million or 8.9% while total liabilities
decreased slightly. The increase in total assets reflects capital spending activity. This compares to total net
assets of $2.3 billion at December 31, 2005, which was an increase of $285.7 million from 2004 that also
related to increased capital spending.





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Management’s Discussion and Analysis, continued

Table A-1
Sound Transit Net Assets
(in millions) As of December 31, % Change
2006 2005 2004 2006-2005 2005-2004
Current assets, excluding restricted assets $ 587.1 $ 679.5 $ 550.7 (13.6) 23.4
Restricted assets 142.1 335.3 170.1(57.6)97.2
Capital assets 2,870.4 2,277.5 1,773.6 26.0 28.4
Other non-current assets 67.9 74.9 67.4(9.3)11.1
Total Assets 3,667.5 3,367.2 2,561.8 8.9 31.4
Current liabilities, excluding interest
payable from restricted assets 162.9 155.0 82.6 5.1 87.7
Interest payable from restricted assets 10.5 10.6 7.2 (0.7)48.0
Long-term debt 779.8 791.2 353.1(1.4) 124.1
Other long-term liabilties 67.0 65.7 59.9 2.