Board of Finance Budget Hearing Agenda (linked)

FY22
BUDGET REQUEST


TOWN OF WATERFORD
15 Rope Ferry Road
Waterford, CT 06385
860-442-0553
SOCIAL SERVICES GRANT FUNDING REQUEST
ORGANIZATION NAME: Southeast Area Transit District FY22
REQUEST DATE (FISCAL YEAR): (July 1, 2021 - June 30, 2022)
REQUESTED AMOUNT: $35,888
BENEFIT STATEMENT (Describe how these funds will be used)
These funds represent the local match requirements to fund public transit services (fixed routes 1,
3, 12, 14, 15 and ADA paratransit service) inthe town of Waterford. The projected total
annual operating costs of the Waterford services is $584,980; the balance of these costs
are borne by State, Federal and passenger fares. SEAT requires no capital contributions
from its member towns, which are fully funded by Federal and State funds.
Per Town of Waterford Budget Guidelines: please attach a certified audit report of all funds appropriated
during the last completed fiscal year to your funding request.
DECLARATION
|, the requester, understand that | am requesting public funds from the Town of Waterford.
| declare that this request does not pose any potential conflict with the Town of Waterford
and | will provide any documentation requested by the Town of Waterford to authorize
funding this request or review the appropriateness of the request.
tA. Sh (2]/2220
Signature 7 Date


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Southeast Area Transit
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SEAT
December FY 2021
Current Month Year to Date Budget Analysis
Variance Variance Variance Variance Earned % Actual %
Actual Plan $ % CONSOLIDATED SEAT Actual Plan $ % 2021 Budget 2021 Budget
OPERATING AND OTHER REVENUES
PASSENGER REVENUES
$ 55,297 $ 93,882 $ (38,584) -41.10% Fixed Route Transit Passenger $ 142,884 $ 563,290 $ (420,406) -74.63% 50.00% 12.68%
$ 936 $ 2,024 §$ (1,088) -53.74% Demand Response Passenger $ 2,675 §$ 12,143 §$ (9,468) -77.97% 50.00% 11.01%
$ 56,234 $ 95,905 $ (39,672) -41.37% Total Passenger Revenue $ 145,558 $ 575,433 $ (429,874) -74.70% 50.00% 12.65%
GOVERNMENT GRANTS
$ 46,817 $ 46,790 $ 28 0.06% Local Government Grants $ 280,904 $ 280,738 $ 166 0.06% 50.00% 50.03%
$ 376,977 $ 386,401 $ (9,424) -2.44% State Government Grants $ 2,261,860 $ 2,318,407 $ (66,546) -2.44% 50.00% 48.78%
$ 28,525 $ 44,207 $ (15,682) -35.47% Federal CARES Grant $ 732,531 $ 265,244 $ 467,287 176.17% 151.08% 417.24%
$ 14,282 $ 14631 $ (348) -2.38% State Government Grants- ADA $ 85,693 §$ 87,783 $§$ (2,090) -2.38% 50.00% 48.81%
$ 466,602 $ 492,029 $ (25,427) -5.17% Total Grant Revenue $ 3,360,988 $ 2,952,172 $ 408,817 13.85% 54.94% 62.54%
OTHER REVENUES
$ 78 $ 2,884 § (2,806) -97.31% Advertising/Misc Revenue $ 20,400 $ 17,302 $ 3,098 17.91% 50.00% 58.95%
$ 78 $ 2,884 §$ (2,806) -97.31% Total Other Income $ 20,400 § 17,302 §$ 3,098 17.91% 2.39% 2.82%
$ 522,913 $ 590,818 § (67,905) ~11.49% TOTAL REVENUES $ 3,526,947 $ 3,544,906 $ (17,959) -0.51% 48.919 48.66%
Page 1 of 6
1/14/2021


Southeast Area Transit
SEAT
December FY 2021
Current Month Year to Date Budget Analysis
Variance Variance Variance Variance Earned % Actual %
Actual Plan $ % CONSOLIDATED SEAT Actual Plan $ % 2021 Budget 2021 Budget
OPERATING EXPENSES
$ 151,887 $ 160,120 $ (8,233) -5.14% Operators’ Salaries & Wages $ 931,848 $ 960,722 $ (28,874) -3.01% 50.00% 48.50%
$ 27,263 $ 29,133 $ (1,870) 6.42% Operators Overtime 215,712 174,796 40,916 23.41% 50.00% 61.70%
$ 51.429 $ 92.557 $ (41,127) -44.43% Other Salaries & Wages $ 517,025 $ 555,340 $§$ (38,315) -6.90% 50.00% 46.55%
$ 230,579 $ 281,810 $ (51,230) -18.18% Total Salaries & Wages 1,664,584 1,690,857 (26,273) -1.55% 50.00% 50.52%
$ 171,593 $ 170,663 $ 930 0.55% — Fringe Benefits $ 1,047,021 $ 1,023,979 $ 23,042 2.25% 50.00% 51.13%
$ 22,752 $ 32,647 $ (9,895) -30.31% Services $ 226,318 $ 195,884 $ 30,435 15.54% 50.00% 57.77%
Materials & Supplies
$ 29,743 $ 38,422 $ (8,678) -22.59% Fuel & Lubricants $ 214,806 $ 230,530 $ (15,724) 6.82% 50.00% 46.59%
$ 4,342 $ 5,755 $ (1,413) -24.55% Tires & Tubes $ 29,841 §$ 34,530 $ (4,689) -13.58% 30.57% 26.42%
$ 17,898 $ 27,395 §$ (9,497) -34.67% Other Materials $ 129,063 $ 164,372 §$ (35,308) -21.48% 50.00% 39.26%
$ 51,983 $ 71,572 §$ (19,589) -27.37% Total Materials & Supplies 373,711 429,432 (55,721) -12.98% 47.57% 41.40%
$ 19,027 $ 21,274 §$ (2,247) -10.56% Purchased Transportation $ 116,166 $ 127,646 $ (11,480) -8.99% 50.00% 45.50%
$ 4176 $ 719 $ 3,457 480.84% Casualty & Liability $ 32,146 $ 4,314 §$ 27,833 645.25% 50.00% 372.62%
$ 5,323 $ 4,276 $ 1,047 24.49% Utilities $ 26,393 $ 25,656 §$ 737 2.87% 50.00% 51.44%
$ 2,326 $ 2,174 $ 152 7.00% Telephone Expense $ 13,994 $ 13,044 $§$ 950 7.29% 50.00% 53.64%
$ 1,212 $ 1,027 $ 185 18.03% Interest Expense $ 8,158 §$ 6,160 $ 1,998 32.44% 50.00% 66.22%
$ - $ - $ - 0.00% Receivable Adjustment $ -~ § - § - 0.00% 0.00% 0.00%
$ 13,198 $ 4,622 §$ 8,576 185.55% — Miscellaneous $ 17,712 §$ 27,733 $ (10,020) -36.13% 239.40% 152.90%
$ 522,170 $ 590,784 $ (68,614) -11.61% TOTAL SEAT EXPENSES $ 3,526,204 $ 3,544,702 §$ (18,498) -0.52% 50.00% 49.74%
Net Income/Loss from
$ 743 $ 34 §$ 709 0.00% Operations $ 743 §$ 204 $ 539 0.00%
Revenue MTD Expense MTD _Surplus/Deficit Operations Net by Program Revenue YTD Expense YTD Surplus/Deficit
$ 479,170 $ 500,333 $ (21,163) Fixed Route $ 2,706,048 $ 3,386,711 $ (680,663)
$ 15,218 $ 21,836 §$ (6,618) ADA $ 88,368 $ 139,492 $ (51,124)
$ 27,782 $ - $ 27,782 CARES Supplement $ 732,531 $ - $ 732,531
$ 522,170 | $ 522,169] $ 1 Combined $ 3,526,947 $ 3,526,203 § 744
Page 2 of 6
1114/2021


(
Southeast Area Transit
SEAT
December FY 2021
Current Month Year to Date Budget Analysis
Variance Variance Variance Variance Earned % Actual %
Actual Plan % CAPITAL PROGRAM Actual Plan $ % 2021 Budget 2021 Budget
Capital Equipment Funding
$ 6,701 $ - $ 6,701 0.00% Federal Capital Grants $ 1,004,106 $ - $ 1,004,106 0.00% - -
$ 1,675 $ - $ 1,675 0.00% State Capital Grants $ 251,540 $ - $ 251,540 0.00% - -
$ 8,376 §$ - $ 8,376 0.00% Total Capital Equipment Funding $ 1,255,646 $ - $ 1,255,646 0.00% - -
Capital Equipment Expenditures
$ 6,701 $ - $ 6,701 0.00% Federal Capital Grants $ 1,004,106 $ - $ 1,004,106 0.00% - -
$ 1,675 $ - $ 1,675 0.00% State Capital Grants $ 251,027 $ - $ 251,027 0.00% - -
$ 8,376 §$ - $ 8,376 0.00% Total Capital Equipment Expenditures §$ 1,255,133 §$ - $ 1,255,133 0.00% - -
Capital Grant Operations Support
$ 68,750 $ 39,669 $ 29,081 0.00% Capital Grant OPS Revenue Funding $ 68,750 $ 79,338 §$ (10,588) -13.35%
$ 68,750 $ 39,669 $ 29,081 0.00% _Capital Grant OPS Expense Transfer $ 68,750 $ 79,338 $ (10,588) -13.34%
$ (0) $ - $ (0) 0.00% Total Capital Operations Activity $ (0) $ - $ (0) 0.00%
$ (0) $ - $ (0) 0.00% Net Income/Loss from $ 513 $ - $ 513 0.00% - -
Capital Programs
Net Income/Loss from
$ 743 «$ 34 $ 709 0.00% Operations & Capital Programs $ 1,256 $ 204 $ 1,052 100.00%
Page 3 of 6
1/14/2021


(
Southeast Area Transit
SEAT
December FY 2021
Current Month Year to Date Budget Analysis
Variance Variance FIXED ROUTE Variance Variance Earned % Actual %
Actual Plan $ % OPERATING EXPENSE Actual Plan $ % 2021 Budget 2021 Budget
$ 151,887 $ 160,120 §$ (8,233) -5.14% Operators’ Salaries & Wages $ 931,848 $ 960,722 $ (28,874) -3.01% 50.00% 48.50%
$ 27,263 $ 29,133 §$ (1,870) -~6.42% Operator's Overtime $ 215,712 $ 174,796 $ 40,916 23.41% 50.00% 61.70%
$ (3,670) $ 23,384 $ (27,054) -115.70% Other Salaries & Wages $ 107,133 $ 140,305 $ (33,172) -23.64% 50.00% 38.18%
$ 175,479 $ 212,637 $ (37,158) -17.47% Total Salaries & Wages $ 1,254,692 $ 1,275,822 $ (21,130) -1.66% 50.00% 49.17%
$ 144,066 $ 132,624 §$ 11,442 8.63% —_ Fringe Benefits $ 841,717 $ 795,744 §$ 45,973 5.78% 50.00% 52.89%
1,406 §$ 992 §$ 414 41.71% HR & Other Services 8,276 §$ 5,953 2,323 39.01% 50.00% 69.51%
Materials & Supplies
$ 22,980 $ 32,663 $ (9,682) -29.64% Fuel & Lubricants $ 187,717 $ 195,976 $ (8,259) -4.21% 50.00% 47.89%
$ 4,342 §$ 5,631 $ (1,289) -22.88% Tires & Tubes $ 27,739 $ 33,784 $ (6,045) -17.89% 50.00% 41.05%
$ 4,062 $ 3,832 $ 230 6.00% Other Materials $ 22,504 $ 22,994 §$ (490) -2.13% 50.00% 48.94%
$ 31,385 $ 42,126 $ (10,741) -25.50% Total Materials & Supplies $ 237,960 $ 252,754 $ (14,793) -5.85% 50.00% 47.07%
$ : $ - $ - 0.00% Miscellaneous $ : $ = $ : 0.00% 0.00% 0.00%
$ 352,336 $ 388,379 §$ (36,042) -9.28% Total FR Operations Expense $ 2,342,645 $ 2,330,273 $§$ 12,372 0.53% 50.00% 50.27%
Current Month Year to Date Budget Analysis
Variance Variance FIXED ROUTE Variance Variance Earned % Actual %
Actual Plan $ % MAINTENANCE EXPENSE Actual Plan $ % 2021 Budget 2021 Budget
$ 44,694 $ 42,704 $ 1,990 4.66% Salaries & Wages $ 279,492 $ 256,226 $ 23,267 9.08% 50.00% 54.54%
$ 6,658 §$ 7,230 $ (672) -7.92% Maintenance Overtime $ 36,863 $ 43,381 §$ (6,518) -15.02% 50.00% 42.49%
$ 26,336 $ 26,567 $ (231) -0.87% — Fringe Benefits $ 158,866 $ 159,400 $ (533) -0.33% 50.00% 49.83%
$ 10,987 $ 11,599 $ (612) -5.28% Vehicle and Bldg MNTC Services $ 97,299 $ 69,595 $ 27,705 39.81% 50.00% 69.90%
Materials & Supplies
$ 1,957 §$ 4,159 $ (2,202) -52.94% Fuel & Lubricants $ 12,179 §$ 24,952 §$ (12,773) -51.19% 50.00% 24.40%
$ - $ 3,657 $ (3,657) 0.00% Misc Travel/Training $ - $ 21,941 $ (21,941) 0.00% 0.00% 0.00%
$ 10,070 $ 21,201 $ (11,130) -52.50% Other Materials $ 91,281 $ 127,205 $ (35,924) -28.24% 50.00% 35.88%
$ 12,027 $ 29,016 $ (16,989) -58.55% Total Materials & Supplies $ 103,460 $ 174,098 §$ (70,637) -40.57% 50.00% 29.71%
$ 100,702 $ 117,116 $ (16,414) -14.02% Total FR Maintenance Expenses $ 675,981 $ 702,698 $ (26,717) 23.80% 50.00% 48.10%
Page 4 of 6
1/14/2021


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Southeast Area Transit
SEAT
December FY 2021
Current Month Year to Date Budget Analysis
Variance Variance ADA Variance Variance Earned % Actual %
Actual Plan $ % TRANSIT EXPENSE Actual Plan $ % 2021 Budget 2021 Budget
$ 755 $ 706 $ 49 6.95% Other Salaries & Wages $ 5.122 $ 4.237 $ 885 20.88% 50.00% 60.44%
$ 755 $ 706 $ 49 6.95% Total Salaries & Wages $ 5,122 $ 4,237 $ 885 20.88% 50.00% 60.44%
$ 404 $ 357 §$ 47 13.25% Fringe Benefits $ 2,746 §$ 2,142 §$ 604 28.23% 50.00% 64.11%
$ - $ 379 §$ (379) -100.00% Vehicle Maint Contracted Service $ 1,969 $ 2,272 $ (303) 0.00% 0.00% 0.00%
Materials & Supplies
$ 826 §$ 1,600 $ (774) ~48.36% Fuel & Lubricants $ 7,888 $ 9,602 $ (1,714) -17.85% 50.00% 41.07%
$ - $ 124 §$ (124) 0.00% Tires & Tubes $ 2,102 $ 746 §$ 1,356 181.77% 50.00% 140.88%
$ 823 $ 97 $ 726 745.95% Other Materials $ 3,500 $ 584 §$ 2,916 499.26% 50.00% 299.63%
$ 1,650 §$ 1,822 $ (172) -9.45% Total Materials & Supplies $ 13,490 §$ 10,932 $ 2,558 23.40% 50.00% 61.70%
$ 19,027 $ 21,274 $ (2,247) -10.56% Purchased Transportation $ 116,166 $ 127,646 $ (11,480) -8.99% 50.00% 45.50%
$ 21,836 $ 24,538 $ (2,702) -11.01% Total ADA Expense $ 139,492 $ 147,228 $ (7,736) ~5.25% 50.00% 47.37%
Page 6 of 6
$ 27,782 §$ - $ 27,782 0.00% Federal Capital - CARES GRNT $ 732,531 $ - $ 732,531 0.00% - -
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EXPENSES
OPERATIONS
Operator Wages
Operator Overtime
Other Wages/Overtime
Operator Fringe Benefits
Tires & Tubes
Fuel
Other Materials/Supplies
Misc
Total
MAINTENANCE
Salaries & Wages
Maintenance Overtime
Fringe Benefits
Contracted Services
Lubricants
Other Materials & Supplies
Miscellaneous
Total
FY 2022
Budget FY 2022
FY 2020 FY 2021 Plan Variance to Variance
Actual Projected Forecast FY 21 Projected %
$ 1,578,152 $ 1,921,443 $ 1,902,522 $ (18,921) -0.98%
$ 323,869 $ 349,592 $ 305,095 $ (44,497) -12.73%
$ 188,020 $ 280,609 $ 189,081 §$ (91,528) -32.62%
$ 1,501,722 $ 1,591,488 § 1,578,319 §$ (13,169) -0.83%
$ 64,280 §$ 67,568 $ 67,000 $ (568) -0.84%
$ 446,921 $ 391,952 $ 344,354 §$ (47,598) -12.14%
$ 59,394 $ 45,987 $ 45,987 $ ~ 0.00%
$ 1,589 §$ 11,906 $ 1,906 $ (10,000) -83.99%
$ 4,163,946 $ 4,660,546 $ 4,434,265 §$ (226,281) -4.86%
$ 478,406 $ 512,451 $ 466,991 $ (45,460) -8.87%
$ 65,575 $ 86,762 $ 89,362 $ 2,600 3.00%
$ 273,398 $ 318,799 $ 307,818 $ (10,981) -3.44%
$ 102,117 $ 77,617 §$ 77,617 $ - 0.00%
$ 24,762 $ 24,426 $ 24,373 $ (53) -0.22%
$ 157,264 $ 227,779 $ 227,779 §$ - 0.00%
$ 9 $ 540 $ 500 $ (40)
$ 1,101,530 $ 1,248,373 $ 1,194,439 $ (53,934) -4.32%


ADMINISTRATION
Salaries & Wages
Fringe Benefits
Management Services
Professional Services
Other Material Supplies
Other Services
Liability Insurances
Utilities
Telephone/Internet
Interest Expense
Miscellaneous
Contingency Adjustment
Total
BUILDING MAINTENANCE
Contracted Services
Materials & Supplies
Heating Oil
Property Insurance
Total
(\
FY 2022
Budget FY 2022
FY 2020 FY 2021 Plan Variance to Variance
Actual Projected Forecast FY 21 Projected %
$ 163,788 $ 222,383 $ 168,839 $ (53,544) -24.08%
$ 97,407 §$ 133,388 $ 108,241 $ (25,148) -18.85%
$ 189,733 $ 151,444 $ 181,268 $ 29,824 19.69%
$ 32,320 $ 34,176 §$ 34,176 §$ - 0.00%
$ 26,427 $ 27,178 $ 27,178 $ - 0.00%
$ 24,461 $ 25,508 $ 25,508 $ - 0.00%
$ 8,458 § 8,627 $ 8,973 $ 345 4.00%
$ 50,961 $ 51,312 $ 51,312 $ - 0.00%
$ 26,822 $ 26,088 $ 26,088 $ - 0.00%
$ 10,201 §$ 12,319 $ 12,319 $ - 0.00%
$ 10,158 $ 11,584 $ 11,348 $ (235) -2.03%
$ 67,928 $ - $ - $ - 0.00%
$ 708,663 $ 704,007 $ 655,249 §$ (48,758) 0.00%
$ 65,552 §$ 61,572 $ 61,572 $ - 0.00%
$ 25,386 §$ 27,022 $ 27,022 $ - 0.00%
$ 29,141 §$ 25,496 $ 25,496 $ - 0.00%
$ 41,988 §$ 43,341 $ 45,074 $ 1,734 4.00%
$ -
$ 162,068 $ 157,431 $ 159,165 $ 1,734 1.10%


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FY 2022
Budget FY 2022
FY 2020 FY 2021 Plan Variance to Variance
Actual Projected Forecast FY 21 Projected %
Economic Assumptions
Assumes recovery to 2019 Passenger Fare Revenue
Reflects State 0% increase in CT/DOT Operating Subsidies in FY 2022
Requests additional Town funding of $0.0 (+0%)
Reflects approval of $21,000 annual Revenue from UPASS for FY 2022
Assumes 42 Drivers
Assumes 0 Part-time Drivers
Reflects final estimated WC Expense including HNS WC expense ($6K)
Reflects 1st Year of new Labor Contract increase with 2.5% increase July 1, 2021
Reflects estimated - 5% Increase CIGNA Dental and Eye
Reflects estimated 6.0% (annual) Increase in Connecticut Partnership health premiums.
Assumes Diesel @ $1.385 gallon thru October & $1.3850 November through June of FY2022.
Assumes capital labor expenditure transfer of $75,000
Assumes additional capital labor transfer of $81,887 based on new FTA Safety Program expense.
Assumes return to FY 2020 ADA Ridership and Expense
Assumes Overtime Expense at FY 2020 Forecast level
Summary of Town Support with 0% Increase for FY 2022
FY 2022
FY 2019 FY 2021 FY 2022 % Change
East Lyme $ 9,200 $ 9,430 $ 9,430 0.0%
Griswold $ 10,657 $ 10,923 $ 10,923 0.0%
Lisbon $ 23,412 $ 23,997 $ 23,997 0.0%
Groton $ 90,416 $ 92,676 §$ 92,676 0.0%
Montville $ 19,444 $ 19,930 $ 19,930 0.0%
New London $ 152,020 $ 155,821 $ 155,821 0.0%
Norwich $ 182,653 $ 187,219 $ 187,219 0.0%
Stonington $ 25,292 $ 25,924 $ 25,924 0.0%
Waterford $ 35,013 $ 35,888 $ 35,888 0.0%
$° 548,107 $ 561,808 $ 561,808 0.0%


STATE OF CONNECTICUT
OFFICE OF POLICY AND MANAGEMENT
FY 2018-2019 MUNICIPAL AUDIT QUESTIONNAIRE
“This Questionnaire is required to be submitted to OPM with the audit reports of
municipalities and audited agencies (as defined under Section 7-391 of the
Connecticut General Statutes).
Name of Auditee Southeast Area Transit District
Fiscal Period under Audit July 1, 2018 to June 30, 2019
Ron L. Beaulieu & Company, CPAs
(Audit Firm Name)
Ron 1. Beaulsin £ Co.
(Signature)
December 23, 2019
(Date)
This Questionnaire was reviewed with and a copy given to:
Alfred Fritzsche on December 23, 2019
Name of Municipal Official Date
Finance Director 860-886-6097
Title of Municipal Official Telephone
July 2019


Did you inform the town, city or Borough clerk of that
part of Section 7-394 of the General Statutes which
provides that within one week after receiving the audit
report he/she shall cause to be published a legal notice in
a newspaper having a substantial circulation in the
municipality that the report is on file in said clerk's office?
Did you obtain a letter from municipal counsel with
respect to unpaid or pending judgments and as to any
other legal proceeding affecting the municipality's finances?
Were financial statements and/or books and records of the
entity made available within a reasonable time after the
close of the fiscal year?
Did the entity issue tax anticipation notes (TANs) during
the fiscal year?
(if yes, the notes to the financial statements should provide
details regarding such TANSs, including the purpose for which
the TANs were issued.)
Was a separate management letter issued in addition to the
Internal Control Report? If so, it must be submitted to the
Office of Policy and Management with the audit report.
Were municipal officials (including the chief elected or
executive official and governing body of the municipal
entity) made aware of findings and recommendations
resulting from the audit?
Federal Single Audit Act as Amended, 1996;
Uniform Guidance for Federal Awards (Title 2 of CFR, 12/26/13)
(a) Did you conduct a Single Audit of Federal
Financial Assistance expended by the entity
for FY 2018-19? x
(b) Is a copy of the Single Audit included in
the reporting package submitted?
State Single Audit (SSA) Act as amended by P.A. 09-7;
Regulations to the SSA Act as amended by P.A. 09-7
(a) Did you conduct a Single Audit of state financial
assistance expended by the entity for FY 2018-19
or a program-specific audit of the entity’s sole
state program?
(b) Is a copy of the State Single Audit or program-
specific audit included in the reporting
package submitted? x

O

(c) If applicable, did officials prepare a Corrective
Action Plan (CAP) in sufficient time for inclusion
in the audit report package [C.G.S. Sec.4-233(d)]
to be filed with OPM as the cognizant state agency
(hardcopy and electronic)? x
(d) Did you upload the corrective action plan with the
audit report package on OPM’s Electronic Audit
Reporting System? x
The following question applies only to the one-hundred and sixty-nine (169) Connecticut municipalities,
including the Borough of Naugatuck. It does not apply to other boroughs, regional school districts,
other audited agencies or the City of Groton.
YES NO
9. Did the municipality complete its filings of the annual
report in accordance with the Uniform System of
Accounting for fiscal years ended 2014 through 2018 as
provided under Section 7-406c(b) of the General
Statutes?


Southeast Area Transit District
State Single Audit Reports
June 30, 2019
Ron L. ~ Company
CERTIFIED PUBLIC ACCOUNTANTS


SOUTHEAST AREA TRANSIT DISTRICT
JUNE 30, 2019
CONTENTS
INDEPENDENT AUDITORS’ REPORTS ON COMPLIANCE FOR EACH MAJOR
STATE PROGRAM; INTERNAL CONTROL OVER COMPLIANCE; AND
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
REQUIRED BY THE STATE SINGLE AUDIT ACT
MANAGEMENT’S SCHEDULES AND NOTES
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
NOTES TO SCHEDULE OF EXPENDITURES OF STATE FINANCIAL
ASSISTANCE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
PAGE
1-3
6-7


Ron L. Beaulieu & Company
CERTIFIED PUBLIC ACCOUNTANTS
www.tlbco.com 41 Bates Street Tel: (207) 775-1717
acctine@rlbco.com Portland, Maine 04103 Fax: (207) 775-7103
INDEPENDENT AUDITORS’ REPORTS ON COMPLIANCE FOR EACH MAJOR STATE PROGRAM, INTERNAL
CONTROL OVER COMPLIANCE, AND SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
REQUIRED BY THE STATE SINGLE AUDIT ACT
To the Board of Directors of
Southeast Area Transit District
Preston, Connecticut
Report on Compliance for Each Major State Program
We have audited Southeast Area Transit District's compliance with the types of compliance
requirements described in the Office of Policy and Management’s Compliance Supplement that
could have a direct and material effect on each of Southeast Area Transit District's major state
programs for the year ended June 30, 2019. Southeast Area Transit District's major state
programs are identified in the summary of auditors’ resulis section of the accompanying
schedule of findings and questioned cosis.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts
and grants applicable to its state programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of Southeast Area Transit
District's major state programs based on our audit of the types of compliance requirements
referred to above. We conducted our audit of compliance 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 State Single Audit Act (C.G.S. Sections 4-230 to 4-236). Those standards and
the State Single Audit Act 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 state program occurred. An audit
includes examining, on a test basis, evidence about Southeast Area Transit District'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 on compliance for each
major state program. However, our audit does not provide a legal determination of Southeast
Area Transit District's compliance.


Opinion on Each Major State Program
In our opinion, Southeast Area Transit District complied, in all material respects, with the types
of compliance requirements referred to above that could have a direct and material effect on
each of its major state programs for the year ended June 30, 2019.
Report on Internal Control over Compilance
Management of Southeast Area Transit District, is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements referred to
above. In planning and performing our audit of compliance, we considered Southeast Area
Transit Districi’s internal control over compliance with the types of requirements that could have
a direct and material effect on each major state program to determine the auditing procedures
that are appropriate in the circumstances for the purpose of expressing our opinion on
compliance for each major state program and to test and report on internal control over
compliance in accordance with the State Single Audit Act, 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 Southeast Area Transit District's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a state program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance such that there is a reasonable possibility that material noncompliance with a type
of compliance requirement of a state program will not be prevented, or detected and corrected,
on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a stafe program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compiiance and the results of that testing based on the
requirements of the State Single Audit Act. Accordingly, this report is not suitable for any other
purpose.
Report on Schedule of Expenditures of State Financial Assistance Required by the State
Single Audit Act
We have audited the financial statements of Southeast Area Transit District, as of and for the
year ended June 30, 2019 and have issued our report thereon dated December 20, 2019, which
contained a qualified opinion on those financial statements. Our audit was conducted for the
purpose of forming an opinion on the financial statements as a whole. The accompanying
schedule of expenditures of state financial assistance is presented for purposes of additional


analysis as required by the State Single Audit Act and is not a required part of the financial
statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to underlying accounting and other records used to prepare
the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the schedule of expenditures of state financial assistance is fairly stated
in all material respects in relation to the financial statements as a whole.
Portland, Maine
December 20, 2019
tao


SOUTHEAST AREA TRANSIT DISTRICT
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 2019
STATE GRANTOR
PASS-THROUGH GRANTOR STATE GRANT PROGRAM
PROGRAM TITLE CORE-CT NUMBER EXPENDITURES
Department of Transportation
Bus Operations 12001-DOT57000-12175 $ 5,025,353
ADA 12001-DOT57000-12378 167,206
TOTAL STATE FINANCIAL ASSISTANCE $ 5,192,559
See accompanying independent auditors’ report and managemeni’s notes to schedule of expenditures of state
financial assistance.


.
f~
SOUTHEAST AREA TRANSIT DISTRICT
NOTES TO SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
YEAR ENDED JUNE 30, 2019
The accompanying schedule of expenditures of state financial assistance includes state grant
activity of the Southeast Area Transit District under programs of the State of Connecticut for the
fiscal year ended June 30, 2019. Various departments and agencies of the State of Connecticut
have provided financial assistance through granis and other authorizations in accordance with
the General Statutes of the State of Connecticut. These financial assistance programs fund
several programs including fixed route services, ADA specialized transit services, and capital
asset purchases.
1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the Southeast Area Transit District conform to accounting
principles generally accepted in the United States of America as applicable to governmenis.
The information in the Schedule of Expenditures of State Financial Assistance is presented
based upon regulations established by the State of Connecticut, Office of Policy and
Management.
Basis of Accounting
The expenditures reported on the Schedule of Expenditures of State Financial Assistance
are reported on the accrual basis of accounting. In accardance with Section 4-236-22 of the
Regulations to the State Single Audit Act, certain grants are not dependent on expenditure
activity, and accordingly, are considered to be expended in the fiscal year of receipt. These
grant program receipts are reflected in the expenditures column of the Schedule of
Expenditures of State Financial Assistance.

C

en,
ao
7
é
fo
SOUTHEAST AREA TRANSIT DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2019
i, SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors’ opinion issued: Qualified
internal control over financial reporting:
- Material weakness(es) identified? yes X no
* Significant deficiency(ies) identified? yes x none reported
Noncompliance material to financial
statements noted? yes x no
State Financial Assistance
internal control over major programs:
- Material weakness(es) identified? yes x no
- Significant deficiency(ies) identified? yes Xx none reported
Type of auditors’ opinion issued on
compliance for major programs: Unmodified
Any audit findings disclosed that are required
to be reported in accordance with
Section 4-236-24 of the Regulations
to the State Single Audit Act? yes x no
- The following schedule refiects the major programs included in the audit:
State Grantor
and State Core-CT
Program Number Expenditures
Department of Transportation
Bus Operations 12001-DOT57000-12175 $ 5,025,353
- Doliar threshold used to distinguish between type A
and type B programs $ 200,000


SOUTHEAST AREA TRANSIT DISTRICT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
C YEAR ENDED JUNE 30, 2019
iL FINANCIAL STATEMENT FINDINGS
e We have issued reports, dated December 20, 2019 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.
e Our report on compliance indicated no reportable instances of noncompliance.
e Our report on internal control over financial reporting indicated no significant
deficiencies.
lil. STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS
e No findings or questioned costs are reported related to State Financial Assistance
programs.

CY
a
v

Southeast Area Transit District
independent Auditors’ Reports and
Management’s Financial Statements
sune 30, 2019
CERTIFIED PUBLIC ACCOUNTANTS

SOUTHEAST AREA TRANSIT DISTRICT C
JUNE 30, 2019
CONTENTS
PAGE
INDEPENDENT AUDITORS' REPORT 1-2
MANAGEMENT’S DISCUSSION AND ANALYSIS 3.1- 3.11
MANAGEMENT’S FINANCIAL STATEMENTS
STATEMENT A - STATEMENT OF NET POSITION 4
STATEMENT B - STATEMENT OF REVENUES, EXPENSES, AND CHANGES
iN NET POSITION 5
STATEMENT C - STATEMENT OF CASH FLOWS 6
NOTES TO FINANCIAL STATEMENTS 7-12 C
INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION 13
MANAGEMENT’S SUPPLEMENTARY INFORMATION
SCHEDULE A - COMBINING SCHEDULE OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION 14
SCHEDULE B - SCHEDULE OF REVENUES, FUNCTIONAL EXPENSES, AND
CHANGES IN NET POSITION 15-46
INDEPENDENT AUDITORS’ REPORT 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 17-18

Ron L. Beaulieu & Company
CERTIFIED PUBLIC ACCOUNTANTS
www.tlbco.com Al Bates Street Tel: (207) 775-1717
accting@rlbco.com Portland, Maine 04103 Fax: (207) 775-7103
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors of
Southeast Area Transit District
Preston, Connecticut
Report on the Financial Statements
We have audited the accompanying financial statements of Southeast Area Transit District, as
of and for the year ended June 30, 2019, and the related notes to the financial statements, as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant
to the preparation and fair presentation of financial staternents that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit 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
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors’
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessrnents, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting polices used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our qualified audit opinion.

Basis for Qualified Opinion
Management has not recorded in-kind revenues and expenses associated with donated bus
and equipment leases from the State of Connecticut. Accounting principles generally accepted
in the United States of America require that in-kind donations be represented as revenue and
either as an expense or asset. Without these transactions, capital assets-net is understated,
and net position is understated. Tne amount by which this departure would affect the assets, net
position, and revenues has not been determined.
Qualified Opinion
In our opinion, except for the effects of the matter described in the “Basis for Qualified Opinion’
paragraph, the financial statements referred to above present fairly, in all material respects, the
financial position of Southeast Area Transit District, as of June 30, 2019, and the changes in
financial position and cash flows thereof for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis on pages 3.1 through 3.11 be presented to supplement
the financial statements. Such information, although not a part of the financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generaily accepted in the
United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's
responses to our inquiries, the financial statements, and other knowledge we obtained during
our audit of the financial statements. We do not express an opinion or provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
December 20, 2019, on our consideration of Southeast Area Transit District's internal control
over financial reporting and on our tests of its compliance with certain provisions of laws,
reguiations, contracts, and grant agreements and other matters. The purpose of that report is
solely 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 effectiveness of
Southeast Area Transit District's internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering Southeast Area Transit District’s internal control over financial
reporting and compliance.
Poriland, Maine
December 20, 2019

~~
7
Management’s Discussion and Analysis
Introduction
Annual reports provide information about the proprietary fund of the Southeast Area
Transit District. This fund shows restrictions on the planned use of resources or
measured, in the short term, the revenues and expenditures arising from certain activities.
GASB Statement 34 requires that the managers of the Southeast Area Transit District
focus on this fund.
The proprietary fund financial statements will continue to measure and report the
“operating results” by measuring cash on hand and other assets that can easily be
converted to cash. These statements show the short-term performance of funds using the
same measures governments use when financing current operations. On the other hand,
if we charge a fee to users for services, fund information will continue to be based on
accrual accounting. Showing budgetary compliance has always been an important part of
governmental accountability.
We hope to provide an objective and readable analysis of our financial performance for
the year. Taken together, the following statements should enable one to assess whether
the Southeast Area Transit District’s financial position has improved or deteriorated as a
result of the year’s operations. The annual report includes proprietary fund financial
statements prepared on the accrual basis for all Southeast Area Transit District’s
activities. Accrual accounting measures not just current assets and current liabilities, but
long-term assets and liabilities as well. It also reports all revenues and all costs of
providing services each year, not just those received or paid in the current fiscal year (or
shortly thereafter).
In sum, the proprietary fund financial statements help to:
a Assess the finances of the Southeast Area Transit District in its entirety,
including the year’s operating results;
Q Determine whether our overall financial position improved or deteriorated;
Q Evaluate whether our current-year revenues were enough to pay for
current-year services;
Q Show the costs of providing the services requested of us;
Q See how we finance the programs requested — through user fees, state and
federal grants, community assessments, and other program revenues;
Q Make better comparisons between governments. The Annual Financial
Report includes the following information and financial statements as
defined by GASB Statement 34.
% Management's Discussion and Analysis (MD & A) — An introduction to the
basic financial statements and an analytical overview of the District’s financial
activities. The MD & A provides an objective and easily readable analysis of the
Southeast Area Transit District’s financial activities based on currently known
facts, decisions, or conditions. The MD & A
3.1

Includes comparisons of the current year to the prior year based on <
government-wide information;
Provides an analysis of our overall financial position and the results of
operations to assist in assessing whether our financial position has
improved or deteriorated as a result of the year’s activities;
Analyzes significant changes in fund and major budget variances;
Concludes with a description of currently known facts, decisions, or
conditions that are expected to have a significant effect on our financial
position or the results of our operations.
Proprietary Fund Financial Statements are designed to provide a broad
overview of the Southeast Area Transit District's finances, in a manner
similar to private-sector business.
They include a statement of net position which presents information on the
District’s assets and liabilities, with the difference between the two
reported as net position. Unlike Operations reports, GAAP requires all
capital revenues, capital expenses and depreciation, as well as operations
expense and revenues, be included in Net Position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the
financial position of the District is improving or deteriorating. The
statement of revenues, expenses and changes in net position presents
information showing how the government’s net position changed during <
the most recent fiscal year. All changes in net position are reported as a
soon as the underlying event giving rise to the change occurs, regardless
of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows
in future fiscal periods. The statement of revenues, expenses and changes
in net position is prepared using the economic resources measurement
focus and the accrual basis of accounting. These statements report all
assets, liabilities, revenues, expenses, and gains and losses of the District.
The proprietary fund financial statements reflect that Southeast Area
Transit District recovers a significant portion of its costs through user fees
and charges. The proprietary activities of the District consist primarily of
providing public transportation to the citizens of its member towns.
Expenses are presented reduced by program revenues, resulting in a
measurement of “net (expense) revenue” for each of the government’s
functions. Program expense includes all direct expenses. General
revenues such as fares, grants, special and extraordinary items are reported
separately, ultimately arriving at the change in net position for the period.
Special items are significant transactions or other events that are either
unusual or infrequent and are within the control of management.
ae
NO

%& Notes to the Financial Statements
» Provide information essential to understanding of the data in the proprietary
fund financial statements.
as> Supplementary Information
« Combining Statement of Net Position, Combining Statement of
Revenues, Expenses and Changes in Net Position and Schedule of
Revenues, Functional Expenses and Changes in Net Position.
We hope the financial reporting model will serve as a more comprehensive way to
demonstrate our stewardship in the long term in addition to the way we currently
demonstrate our management in the short term and through the budgetary process.
As management of the Southeast Area Transit District, we offer readers of the District’s
financial statements this narrative overview and analysis of the financial activities of the
Southeast Area Transit District for the fiscal year ended June 30, 2019.
SEAT Structural Change
From a historical view SEAT has been undergoing structural change since 2010, when
SEAT started making equipment purchases under Grants that were under SEAT’s name.
SEAT made its first substantial purchase of buses in FY 2013 with two new hybrid
electric buses. Prior to this all buses and equipment had been purchased through the State
of Connecticut under grants in the State’s name. Under this prior mode, the State of
Connecticut was responsible for reporting depreciation and status of vehicles to the FTA.
Since that initial purchase of (2) hybrid buses, SEAT has replaced 28 additional buses,
service trucks, SUVs and minivans under grants in SEAT’s name, and will replace an
additional 8 buses over the next two years. As a result, SEAT is now almost entirely
responsible for reporting depreciation and status of assets directly to the FTA, the details
of which are also reported directly to the State of Connecticut.
From an accounting point of view, this change is resulting in a huge increase in
undepreciated assets and is having a significant impact on ‘Net Position’, and how our
performance is measured. Our Fixed Assets have grown from ‘zero’ investment in Fixed
Assets in FY 2012 to $8,956,277 in FY 2019. Correspondingly, SEAT has gone from
reporting ‘zero’ depreciation in FY 2012 to $827,434 in FY 2019. This has affected our
Statements in this audit.
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Statement B of our Financial Statements shows an operating loss (before capital
contributions) of $-824,281. This is almost entirely due to reporting $827,434 in
depreciation expense. At the same time our assets were increased by $2,480,052, and our
net position was driven up by $1,655,819 in FY 2019 due to delivery of (5) heavy duty
buses and (2) service trucks in FY 2019. As we complete transition to 100% ownership
of the vehicles and equipment purchased under our own grants, and we replace the last
eight heavy duty buses, you will likely see a continuing increase in “Net Position’. It is
also reasonable to forecast that the Net Position will start to decline in FY 2021 and FY
2022, as the depreciation grows and exceeds new purchases. While Net Position is now
dominated by the impact of capital assets, you will read, in the analyses below, that in FY
2019 SEAT had a very small surplus in operating expense.
As a special note regarding Statement C, ‘Statement of Cash Flows’, it is reported we had
a significant decrease in cash and cash equivalents in FY 2019 from FY 2018. This was
related to bus procurement expense and was the result of obtaining funding from the State
of Connecticut in FY 2018 for (5) new buses that were not actually paid for until early
FY 2019. SEAT’s actual cash excluding that one transaction would have shown an
improved cash position for FY 2019 year end.
Non-Financial Highlights
For overview SEAT provides the following key events occurring in FY 2019, some of
which have contributed to the Financial Highlights that follow:
e SEAT completed the 2TM year of our 3 Year Labor Contract with ATU.
FY 2019 included a 2.5% wage hike.
e Capital Purchase of NewFlyer replacement buses received in May & June
of FY 2018, and in July of FY 2019 with the successful installation of
GPS Locator Systems, Motorola Radios, GFI Fareboxes, Apollo Mobile
Security equipment, and New Flyer repairs to their steering system. These
buses were put into service in late July of FY 2019.
e In addition, (4) Gillig 30° replacement buses were successfully received in
February of FY 2019 and placed in service in late March. These Gillig
buses were delivered with most communications, security and farebox
equipment already installed.
e Ridership and Passenger Fare Revenues will be reviewed in detail in the
Proprietary Fun