07 CAFR cover FINAL.p65 - WMATA.com

More documents

Recommendations

Info

Washington Metropolitan Area Transit AuthorityFY 2007 Comprehensive Annual Financial ReportManagement’s Discussion and AnalysisAs management of the Washington Metropolitan Area Transit Authority (Authority), we offer readers of the basicfinancial statements this narrative overview and analysis of the financial activities of the Authority as of June 30,2007, 2006 and 2005 and for the years ended June 30, 2007 and 2006. This discussion and analysis is designedto assist the reader in focusing on significant financial issues and activities and to identify any noteworthychanges in financial position. We encourage readers to consider the information presented here in conjunctionwith the basic financial statements taken as a whole.Fiscal Year 2007 Financial Highlights• Capital assets increased by $97.7 million or 1.2 percent, largely attributable to bus purchases, facilitiesenhancements and rail rehabilitation.• Noncurrent liabilities decreased by $60.5 million or 3.7 percent, largely due to bond repayments anddecreases in outstanding lease agreement obligations.• Operating revenues increased by $17.6 million or 2.9 percent, due to an increase in ridership. Specialevents such as Washington area capital events, sporting events, as well as an increase in gas prices allcontributed to the increase in revenue and ridership.• Operating expenses increased by $145.0 million or 9.9 percent, due primarily to an increase in labor costto cover vacancies, system maintenance cost, and additional safety and security activities. The costassociated with the increase use of the Authority’s paratransit service and rising fuel cost also contributedto this increase.Overview of the Basic Financial StatementsThis required annual report consists of three parts: Management’s Discussion and Analysis, Basic FinancialStatements and Required Supplementary Information. The basic financial statements also include notes thatprovide in more detail some of the information in the basic financial statements.Basic Financial Statements. The Authority’s basic financial statements are prepared in conformity withaccounting principles generally accepted in the United States of America (GAAP) as applied to an enterpriseusing the accrual basis of accounting. Under this basis, revenues are recognized in the period in which they areearned, and expenses are recognized in the period in which they are incurred.The Authority’s basic financial statements are the Statements of Net Assets, the Statements of Revenues,Expenses and Changes in Net Assets and the Statements of Cash Flows.The Statements of Net Assets report the Authority’s net assets. Net assets, the difference between assets andliabilities, are one way to measure the financial position of the Authority. This is only one measure, however, andthe reader should consider other indicators, such as the rate of growth of operating subsidies, passenger farelevels, ridership, general economic conditions in the metropolitan area and the age and condition of capital assetsused by the Authority.The Statements of Revenues, Expenses and Changes in Net Assets report all of the revenues earned andexpenses incurred during the reporting periods.The Statements of Cash Flows provide information on cash receipts and cash payments during the reportingperiods.The basic financial statements can be found on pages 21-26 of this report.11
Washington Metropolitan Area Transit AuthorityFY 2007 Comprehensive Annual Financial ReportManagement’s Discussion and AnalysisOverview of the Basic Financial Statements (Continued)Notes to the Basic Financial Statements. The notes provide additional information that is essential to a fullunderstanding of the data provided in the basic financial statements. The notes to the basic financial statementscan be found on pages 27- 51 of this report.Required Supplementary Information. In addition to the basic financial statements and accompanying notes,this report also presents certain required supplementary information concerning the Authority’s progress infunding its obligation to provide pension benefits to its employees. Required supplementary information can befound on page 52 of this report.Financial AnalysisStatements of Net AssetsAs noted earlier, net assets may serve over time as an indicator of the Authority’s financial position. This is onlyone measure; however, the reader should consider other indicators, such as the age and condition of theAuthority’s three-decade system, as well as its need for increasing operating subsidies and ridership levels. Thefollowing table provides an overview of the Authority’s financial position for the years ended June 30, 2007, 2006and 2005:Table 1Condensed Statements of Net AssetsJune 30, 2007, 2006 and 2005(in thousands)2007 2006 2005Current and other assets $2,270,758 $2,351,726 $ 2,485,329Capital assets 8,234,163 8,136,494 7,800,188Total assets 10,504,921 10,488,220 10,285,517Current liabilities 767,616 552,638 444,055Noncurrent liabilities 1,591,253 1,651,760 1,721,722Total liabilities 2,358,869 2,204,398 2,165,777Net assets:Investment in capital assets, net ofrelated debt 7,880,168 7,904,568 7,547,065Restricted 265,884 379,254 572,675Total net assets $ 8,146,052 $ 8,283,822 $ 8,119,740Current YearNet assets decreased by $137.7 million or 1.7 percent during the current fiscal year, due to an increase inspending for capital expenditures and the method of jurisdictional funding for such capital expenditures.The largest portion of the Authority’s net assets, $7.9 billion or 96.7 percent, reflects its investment in capitalassets (e.g., land, buildings, transit facilities and revenue vehicles), less any related debt used to12
Page 3 and 4: Washington Metropolitan Area Transi
Page 5: Washington Metropolitan Area Transi
Page 8: Washington Metropolitan Area Transi
Page 14 and 15: ___________________________________
Page 16 and 17: KPMG LLP2001 M Street, NWWashington
Page 68:
Washington Metropolitan Area Transi
show all

07 CAFR cover FINAL.p65 - WMATA.com

Create successful ePaper yourself

Delete template?

Save as template?