Transit Authority Netted Positive Income in Last Fiscal Year
Maher-Duessel CPA Manager Brian McCall reviews the 2012 Fiscal Year audit with Town and Country Transit municipality representatives at their first meeting of the New Year yesterday. While system-wide expenses rose within the transit authority - including within fixed-route and shared ride services - capital grant funding rose more than 40 percent as opposed to 2011, helping transit leaders net a $245,000 income.
by Jonathan Weaver
Town and County Transit board directors heard and accepted the Fiscal Year 2012 audit at yesterday’s monthly board meeting.
In that report prepared by Transit officials and the Maher-Duessel public accounting firm – which has offices in Butler and Pittsburgh -, directors heard that the transit authority saw a $245,000 net income from July 2011-June 2012.
Manager Brian McCall and Partner Tim Morgus of Maher-Duessel analyzed figures given to them through General Manager Patti Lynn Baker and Financial Manager Lisa Midla during the last few months, and approved the audit report officially during the last week of December.
McCall was at the meeting yesterday and said the firm is called on annually for their accounting opinion.
“We assist in the preparation (of financial analysis), but really those numbers are management’s assertions,” McCall said. “What we do is offer an opinion if those numbers are materially-accurate and the disclosures are also materially-accurate.”
His final analysis included praise for resolving some deficiencies in the 2011 fiscal year.
“It really seemed like a lot of things were done to make things run smoother,” McCall said.
The net income came despite increases in operator salaries and wages, fringe benefits and rising fuel costs.
Officials did make sizable cuts on some expenses: cutting back nearly $100,000 on miscellaneous expense, more than $50,000 on interest and more than $30,000 each on other salaries and service.
Town and Country Transit also received $3,000 more in passenger fares during the past fiscal year despite increased fares in both fixed and shared-ride services.
McCall praised transit leaders for acquiring more than 50 percent of its revenue through grants.
The audit shows nearly $2 million in federal and state funding, “local match” funding through local municipalities and the sale of capital assets, including two vehicles during the summer.
“I think your ability to receive grants has really helped (Town and Country Transit) throughout the year,” McCall said. “Because of the federal dollars received, you had to have what is called a single audit – that means, not only were we looking at the numbers for certain programs, but we also have to look at the compliance.”
McCall said Maher-Duessel was able to readily ask questions and confer with transit officials while analyzing the data.
“We didn’t have any difficulties when we were performing the audit – great help from everyone on staff,” McCall said.
Financial reports indicate Maher-Duessel is to be paid nearly $10,000 for their work.
Town and Country Transit General Manager Patti Lynn Baker and West Kittanning Borough Representative Henry Mores discuss credit card authorization procedures before his sign-off as Board President. The headquarters was also formally authorized as a fleet inspection station for Operations Manager Gerry Miller.
As far as the 2013 fiscal year, Baker and Midla reported six-year skids during their reports during the remainder of the meeting.
Baker said that both Fixed Route and Shared Ride passengers have decreased.
“Shared Ride is down a total of nine percent for the first six months over last year’s six months. Keep in mind, last year we probably had a seven percent increase, so we’re almost where we were (in 2010),” Baker said. “We really don’t like to be going backwards.
“That’s something we need to investigate,” Baker added.
In that category, the largest decrease was seen from Persons with Disabilities riders down (12 percent) and senior citizens (down 13 percent).
“The odd thing is: the under-65 trips actually increased two percent year-to-date in the first quarter, which was the worst quarter for anything else,” Baker said.
Baker then reported fixed ridership has decreased nearly 20 percent, which also is to be investigated.
“We have no explanation on this because our drivers are telling us they’re busier than ever,” Baker said.
Ridership statistics are now to be given to board representatives on a regular basis.
Midla reported in her financial reports that Town and Country received a net income of $25,000 in November, but saw a net loss in December.
In the first six months of this fiscal year, Town and Country Transit have seen a net income of more than $70,000, with more than $800,000 in expenses.
As of December 31, fixed route expenses were less-than budgeted for and more revenues were received.
In other news, transit leaders have received $133,000 in capital grants for three new cutaway vehicles.
Last week’s icy road conditions not only surprised motorists, but also transit drivers, which caused a three-hour service disruption January 9.
“(Drivers) couldn’t get into (Kittanning) or out of town because they had closed the bridges and a lot of other roads as well,” Baker said. “I think except for the southern end of the County, all of our drivers pulled over.
“I’ve been here 10 years, and we’ve not done that before. You can’t go anywhere on ice,” Baker added.
Local News | jweaver January 17, 2013
By Dollar, January 17, 2013 @ 3:53 PM
Only in Goverment,Can you get over $2 Million dollars of tax payers money. Put it into a sink hole,Give yourself a raise with all the perks.And call it positive income.AND pay someone $10,000 to tell you good job. If you save us tax payers one dime you can have a pat on the back
By forward, January 17, 2013 @ 11:31 PM
Dollar, my thoughts exactly.A total waste of tax money.