Board of Selectmen - 444 (02/02/2021)
agenda center attachment
| Board/Commission | Board of Selectmen |
|---|---|
| Meeting Date | February 02, 2021 |
| Pages | 90 |
| File Size | 3.9 MB |
| OCR Status | Searchable (OCR processed) |
| Source URL | Original |
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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. Signature \ Date LZOc/r L/L DOO SP hv6 ov %LS°O- (6g6'21) $ g906'rrS'€ $ ZvB'Ozs's $ SANNFAAY WLOL %6v' |b |- (s06'29) $ sLe‘o6s $ EeLé6'zzs $ %G6'eS %00'0S %LELL 960° $ ZoOe'LL $ 00r'0z $ enuensy osi\/6ulseapy %LELE- (908‘2) $ pee'c $ eZ $ SSNNSAIY YAHLO HBL 8v %00°0S Wy Z- (979'9¢) $ Lor'ele’? $ ogs'Lez'z $ S}JUBIS) JUBLULUSADE) O}2}S Wer Z- (yzv'6) $ LOopose $ ZZ6'92E $ %E0°0S %00°0¢ %90'0 99} $ gez'osz $ ¥06'08Z $ SJUBID JUBLULUSADD [2907 %90°0 gz $ O6Z'9h $ LLS'OF $ SLNVUSD LNAWNYSAOD %GO'TZL %00°0S %OL vs- (v28'67p) $ eer'ssG $ ggg‘crL $ anuansy Jebuassed [e}0 1) WLS’ Lo (Z19'68) $ so6‘s6 $ vez‘aG $ %LO ve %O00 0 WIE LL (g9r'6) $ EPL'ZL $ Gl9'% $ Jabuassedy ssuodsey pueuieq %yLES- (g80'1) $ ye0'z $ 9€6 $ %VI TL %00°0S WEQ bL- (g0r'0zy) $ o6ze9S $ Ege'ZHL $ sabuessed sues) a}NoY paxi4 %OL'bb- (p9g‘es) $ ees's6e $ L6z‘'Sg $ SSINNAARY YSAONASSVd SSNN3ASY YSH.LO GNV ONILVHadO yebpng 1zoz = yebpng 1z0z % $ URIcj jenpy LV3S dSLVdNOSNoo % $ Ueld jenpy % jenypYy % poweg DOUBLE A SOUBLIBA souele, aoUeeA sishjeuy Jebpng ayeq 0} ued A yuo] JUaLIND ra ivas jisuel] Rely JseOyINoS O a Southeast Area Transit o i 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 $ 92557 $ (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% $ 4,176 $ 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 1/14/2021 C~ 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 §$ 1,052 400.00% Page 3 of 6 1/14/2021 g jo y abed %OL' ep %00°0S %O9E- (LLZ'92) $ g69'70L $ 186929 $ sesuedxg soueuszuleWYd 1e}0L = %Z0'r)- (yiy'9L) $ OLVLZLE $ 202001 $ %LL6e %00°0S %15°OF- (z¢9'02) $ 860'rZb $ O9P'EOL $ salddng 9 sjevoyew je}01 %GS°8S- (686'91) $ 91062 $ LzZ0'Z) $ %BeSe %00°0S %pe'Sc- (yz6'se) $ GOzZzL 6$ «L8Z'L6 $ s[evayeW JeyjO %0G°ZS- (oe LLL) $ toziz $ OZ0'0L $ %00°0 %00°0 %00°0 (L6'L2) $ LPe'LZ $ $ Burues| ened | Osi] %00°0 (4g9'€) $ 299°C $ - 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SNOSUBYSOSI;\] anueasy Buisieapy SNOANVTISOSIIN juelg Buyeiedg SayVvo VL WV - SJUBID JUBWUISA0D a}e]S$ aINOY PX! - SJULIS) JUBLUIUISAOD o}e}S SJUBIS) JUBWIULBAOS [2907 AGISANs TV9071 GNV ALVLS Seseyoind Jax911 - (SSQ)/EIMOA - MLM enusrey Wsueld) yeloads Vay - sae JaBusssed doug 9 dojsg - sore saBuesseg soe Jabuessed 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% JB}0] goueinsy] Aedoig to Buyeay sayddns 9 sjeLvayey| SEDIAIAS pajoesjuoy %OL'L veL't $ S9L‘6SL $ Ler'ZsL $ 990'Z91 $ -$ %O0'¥ vEL'L $ vlo‘Sr $ Leer $ ge6'Lr $ %00'0 - $ 96p'Sz $ 96r'Sz $ LVL‘'6Z $ %00°0 - $ 22022 $ 2012 $ gge'gz $ %00'0 - $ zZg‘L9 $ ZLS'LO $ ~egG'g9 $ %00°0 (892'8r) $ 6bz'SS9 $ 200'v0Z $ €99'802 $ %00'0 - $ o° $ - $ 97c6'Z9 $ %EO'C- (sez) $ spe‘bL $ pes'LL $ 8GL‘OL $ %00'0 - $ 6Le'ZL $ 6LE'ZL $ LOz‘OL $ %00'0 - $ 909°Sz $ g09'Sz $ LOr'vz $ % pasaloig +z Ad yse90104 payaloid fenpy aouele/A 0} SOURLIEA ued Lzoz AA 0z0z AJ AONVNALNIVW ONIATIING [B}0] juaujsnipy Aous6uguog yousa}U|/auoydsja | saoueinsuy Ayyiqer SBDINVS JOUIO salddns jevayeyy J8yO SODIAIBG [BUOISSAJOid sadlAlag juowabeueyy saben 9 souejes NOILVULSININGV %0'001- (000‘sz) $ " $ 000'S2 $ (69%‘997) $ %09'b- (pyz'SZe) $ 69S'6E1'9 $ €18'y90'L $ €gl'cse'9 $ %l.'0 y66'l $ o0Sp‘'96z $ 9Gr'v67 $ 8l6'Sre $ %00°0 (p16'e) $ 0€9 $ bsp $ o€9 $ *P'e 602'8 $ 00097 $ L6e's9z $ LG0'60Z $ % payoaloid LZ Ad yse99104 paso jenyoy SOUBHEA 0} SOUBHEA ueld L202 AA 0202 Ad LY (SSOTINIVS LAN ASNAdX4a IWLOL ONVYD JB}O]. SOUL SODIAIOS payoejUOD sobej, soueuajuley| }80D JoyelodoO SADIAYMAS VAV %0°0 g08' 19S $ s0g'L9S $ LOL'8rS $ %0°0 889'Se $ 99e'Ge $ eLo'se $ %0'0 ¥26'GZ $ 726'SZ $ %6e'S7z $ %0°0 6LZ'281 $ 6LZ'L8L $ eg9'78L $ %0°0 LZ9'GSh $ L29'SSL $ Oz0'CSL $ %0'0 oe6'61 $ Oc6'6l $ prr'6l $ %0'0 919'76 $ 919'26 $ 91r'06 $ %0'0 266'€Z $ L66'€2 $ ZLy'ez $ %0°0 €26'01 $ €26'0L $ 4g9'01 $ %0'0 ocr'6 $ 0cr'6 $ 002'6 $ abueyo % e202 Ad 4202 Ad 6L02 Ad PIOHS}EAA YOIMION SINAUOY] uoqs!] owA \se4 ZZ0Z AJ 404 aseas9U] %O YM Woddns umo] jo Aiewuns Jeg] SB99104 OZ0Z AJ ye eSuedxy sUUI2AG SowNnssy asuedxy pue diysuapry yay 0Z0Z Aj 0} Uinjol Souinssy ‘asuedxe wesBoig Ajojeg WL4 Mou UO pasegq 299‘Lg¢ JO JOJSUeI) JOge] [eEJIde9 jeuoHIppe sewnssy 000‘SZ$ Jo 40SUe1) SuN}IpUadxea JOqe] |e}ideo seunssy "@Z0ZAA 40 AuNP YBnosy) 4aquIeAON OSBE'L$ 8 49q40}90 NY} UO||eB SgE"L$ @ jaseiq seunssy “suuniweid yyeay diysiaujieg ynd1I}99UUO UL aSBaI9U] (JeENUUe) %Q"9 pa}yEUISS s}ODYyOY o@Aq puke |e}U9q YNDID eseos9U] %G - payeulse sJOayoy LZ0Z ‘L Aine eseaisul %gG"Z YPM VSESIOUI J9L1JUOD JOGe] MOU Jo 1d, ISL SJIBYOY SIZALG Zp Sounssy ZZ0Z Ad 40} SSVdN Wo snusAsy penuUe 000‘LZ$ JO [eAOIdde s}IOYoy (%0+) 0'0$ 30 Bulpuns umo_ jeuoljppe sysenbey 2202 Ad Ul Salpisqns BulyesedQ LOG/LO Ul esealdU! %O aje}S S}IOYaY enusasy aie4 sabuessegd 6107 0} AiaA0900) souinssy suonduinssy s1W0u0D5 % papeloid +2 Ad }S@50104 peyaloid fenay Zz0z AS ye6png e202 AA \ a A i a (~ 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) Reon 4. Behn e 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 C~ 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 TANs, 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 (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 schoo! 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. Beaulieu & Company SOUTHEAST AREA TRANSIT DISTRICT JUNE 30, 2019 CONTENTS PAGE 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 1-3 MANAGEMENT’S SCHEDULES AND NOTES SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE 4 NOTES TO SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE 4) SCHEDULE OF FINDINGS AND QUESTIONED COSTS 6-7 Ron L. Beaulieu & Company CERTIFIED PUBLIC ACCOUNTANTS www.tibco.com 4] Bates Street Tel: (207) 775-1717 accting@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’ results 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 Singie 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 Compliance 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 District'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 contro! 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 state 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 compliance 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 statemenis 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 C) 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 cornparing and reconciling such information directly to underlying accounting and other records used to prepare the financial statements or to the financial staternents 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. é Portland, Maine December 20, 2019 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 187,206 TOTAL STATE FINANCIAL ASSISTANCE $ 5,192 559 See accompanying independent auditors’ report and management's notes to schedule of expenditures of state financial assistance. —s é ‘\ } 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 depariments and agencies of the State of Connecticut have provided financial assistance through grants 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 governments. 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 accordance 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. wa ron, of; j \ 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 xX 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 x 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 reflects the major programs included in the audit: State Grantor and State Core-CT Program Number Expenditures Depariment of Transportation Bus Operations 12001-DOT57000-12175 $$ 5,025,353 - Dollar 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 I. 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. ill. STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS e No findings or questioned costs are reported related to State Financial Assistance programs. (\ Southeast Area Transit District independent Auditors’ Reports and Management’s Financial Statements June 30, 2019 Ron L. Beaulieu & Com ny CERTIFIED PUBLIC ACCOUNTANTS SOUTHEAST AREA TRANSIT DISTRICT a . 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 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 15-16 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.tibco.com 4] 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. fWanagement’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 statements that are free from maierial 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 assessments, 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 reasonabieness 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. The 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 generally 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 statemenis, 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, regulations, 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. t Feown 4. Beavhun oa Co, Portland, Maine December 20, 2019 -_ 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; @ Determine whether our overall financial position improved or deteriorated; a 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; a 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 C 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 ~ 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. 3.2 co 3% Notes to the Financial Statements * Provide information essential to understanding of the data in the proprietary fund financial statements. » 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. 1) 1) 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 2" 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 Passeng