Fiscal Year 2010 Operating Budget - Septa

Financial and Budgetary Policies
Long Range Planning
SEPTA continually assesses the consequences of national, state and local demographic,
economic, travel and development trends for SEPTA’s current and future operations,
services and capital projects. This assessment includes the evaluation of current and
potential service levels in accordance with SEPTA’s Annual Service Plan and the City
Transit, Suburban Transit and Regional Rail Service Standards and Processes. This
assessment forms the backdrop for SEPTA’s long range planning and the basis for the
five-year financial projections which are included in the adopted budget for each fiscal
year.
Asset Management
SEPTA has established an internal control structure to ensure that assets are protected
from loss, theft or misuse, and to ensure that adequate accounting data are compiled for
the preparation of financial statements in conformity with generally accepted accounting
principals. The Procurement and Supply Chain Management Department of the Business
Services Division handles the purchase, lease, sale, and disposal of parts, equipment,
supplies, repairs, and services utilized by the organization. This includes the
coordination and enforcement of federal, state and local funding agency regulations for
all approved capital expenditures. The principal areas of responsibility include
compliance and support services, contract administration, purchasing, resource control
and production control. The specific function of this group is further defined in the
departmental section of this budget document.
REVENUE POLICIES
Revenue Diversification
The Authority continues to explore areas for revenue diversification and enhancement to
supplement passenger revenue and subsidies. Such enhancements shall include, but not be
limited to, developing new business and community partnerships, expanding the
advertising program, identifying opportunities to serve new markets and pursuing parking
initiatives to increase ridership and parking revenue.
Fees and Charges
The Authority’s fare structure has been implemented in accordance with legislation
established by the legislature of the Commonwealth of Pennsylvania and applicable
federal legislation. Changes to SEPTA’s fare structure are subject to the guidelines
established by this legislation, including a public hearing process.
One-time Revenues
The Authority has adopted a policy whereby it does not rely on one-time revenues of any
sort to finance ongoing operations.
Southeastern Pennsylvania Transportation Authority Page 12 Fiscal 2010 Operating Budget