HomeMy WebLinkAbout2014-9-4Nantucket Regional Transit Authority
3 East Chestnut Street, Nantucket, MA 02554
Phone: 508- 325 -9571 • Fax: 508 - 325 -0788 • TTY: 508- 325 -7516
www.nrtawavexom • nrtaOnantucket- ma.gov
Minutes of the Finance and Audit Committee Meeting of September 4, 2013. The
meeting took place in the Training Room of the Nantucket Police Station, 4 Fairgrounds
Road, Nantucket, MA 02554. Members of the Board present were: Rick Atherton,
Robert DeCosta, Bruce Miller, Matthew Fee, Tobias Glidden and Jeanette Topham.
Chairman Atherton opened the meeting at 5:30 p.m.
Presentation of FY13 Audited Financial Statements by Bruce Norling, CPA. P.C. per
801 CMR 53.00 and MassDOT Policy. Ms. Leary introduced Bruce Norling and left the
room.
Mr. Norling presented the basic financial statements to the board and explained what
the numbers are for the organization. As the audit fine Mr. Norling gave a report on the
opinion of the financial statements and commented that the financial statements are
fairly stated and there are no exceptions to that opinion. Mr. Norling also reported on
intemal controls and Circular A -133 for major federal program awards. The MDA and
independent auditors report are materially fairly stated. Mr. Norling stated that the
statement of net position or balance sheet shows the organization is fiscally strong.
NRTA's working capital assets over liability by $2 million. The organization accrues
OPEB for the two full time employees. Mr. Norling credited NRTA for the audit work to
be completed this early year. Mr. Norling stated the way the financial operations are
structured are good. Mr. Norling noted that NRTA is a Component unit of the
Commonwealth of Massachusetts and these reports are submitted to the state and are
consolidated. Mr. Norling also noted RAN activity is disclosed in the footnotes. Mr.
Noding stated that the organization is well run. The auditing firm performs a lot of
testing of transactions of revenue and expenses and 100% of payroll. The provider of
the transportation services has records all in order and the bus system is unbelievable
here. Mr. Norling discussed the A -133 Report required when $500,000 or more in
federal funding is received. The NRTA secured four new buses from federal funding
which required the A -133 report to be done that wasn't required in FY12. The NRTA
received approximately $1.2 million in federal awards; $750,000 in capital for new buses
and the remaining in federal operating funding. Nr. Norling tested invoices, reviewed
and tested procurement viewed the buses and verified VIN numbers. Mr. Norling
reported there were no findings.
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Nantucket Regional Transit Authority
3 East Chestnut Street, Nantucket, MA 02554
Phone: 508- 325 -9571 • Fax: 508 - 325 -0788 • TTY: 508- 325 -7516
www.nrtawavexom • nrtaOnantucket- ma.gov
Mr. Atherton asked Mr. Norling what other regional transit authorities he audits. Mr.
Norling is currently the auditor for Martha's Vineyard Transit Authority (VTA), Cape Cod
Regional Transit Authority (CCRTA), and Greater Attleboro Taunton Regional Transit
Authority (GATRA), as well as others in the past. Mr. Miller asked about a comparison
of NRTA to VTA. Mr. Norling stated VTA is double or triple the size and that both
authorities run very well.
Mr. Atherton stated that is nice to have a clean audit with no adverse opinion or
qualifications of any kind.
Mr. Norling discussed the separate OMB Circular A -133 which audits major federal
programs. Internal controls that are in place are good and they work resulting in no
findings. The accounting policies that are in writing are being followed. Fare collection
is an electronic farebox system and counting procedures have very tight internal
controls in place. Mr. Atherton stated it is hard to have separation of duties with only
two employees. Mr. Norling responded that the electronic fare collection system and
comparison to the counts provides separation. Counting room procedures are done
correctly. Mr. Norling stated he is very confident and pleased when he sees and tests
everything and that procedures are being followed. There were no matters found and
the system put in place is remarkably good.
Mr. Fee asked why NRTA qualified as a no risk auditee. Mr. Norling explained the
required statement low risk or not a low risk has to do with the amount of federal money
received and the consecutive years those dollar amounts are received. The NRTA
does not meet the requirement every year.
Mr. Miller asked who bares ultimate liability for RAN. Mr. Norling responded that he
wasn't aware of the legal aspect but presumed it would be NRTA, but NRTA is a
component of the Commonwealth of Massachusetts.
Mrs. Topham questioned why only the Administrator's salary was reported in the audit
when there are two employees. Mr. Norling responded that is not required to disclose
any other employee's salaries then the Administrators.
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Nantucket Regional Transit Authority
3 East Chestnut Street, Nantucket, MA 02554
Phone: 508- 325 -9571 • Fax: 508- 325 -0788 • TTY: 508- 325 -7516
www.nrtawave.com • nrta @nantucket- ma.gov
There was discussion about the capital assets listing of buildings and structures and
whether the NRTA owned the bus garage.
Mr. Norling reported that the Administrator is a good administrator, very conscientious
wants to be absolutely perfect, and has shown that she takes the job incredibly. Mr.
Norling is seriously impressed, with how well the program runs well and costs are within
the budget. People really respect her — the drivers, managers and maintenance and
she does an excellent job.
Ms. Leary came back into the room.
Mr. Miller moved to accept FY13 Audited Financial Statements; seconded by Mr.
DeCosta. So voted.
The meeting was unanimously adjourned at 5:52 p.m.
Approved: February 12, 2014.
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