FY2017 PROPOSED BUDGET

Washington Metropolitan Area Transit Authority
Proposed Fiscal Year 2017 Budget
Appendix D
• In accordance with Board Resolution No. 81-36, designated Metro officials are empowered
to open, close or authorize changes to accounts and authorized to appoint individuals as
official signatories for financial accounts.
• An annual actuarial analysis is performed on all Metro-administered pension plans. Based
on the results of such analysis, Metro makes contributions as required in agreement with
the terms of each plan.
• Appropriate insurance coverage is maintained to mitigate the risk of material loss. For selfinsured
retentions, Metro records the liabilities, including losses incurred but not reported,
at 100 percent of the net present value.
• The budget includes operating, capital, and other components necessary to implement the
policy directions contained in previously Board-adopted longer-term plans. The operating
budget spans a 12-month period, and funding for the capital budget carries over from one
fiscal year to the next. The budget is prepared in a fashion to clearly describe the projects
and programs for the period.
• Metro engages in regional long-range transportation planning for the Washington
metropolitan area in conjunction with the National Capital Region Transportation Planning
Board (TPB) and other jurisdictional partners. Staff provides transit system inputs to TPB
for the Constrained Long-Range Plan (CLRP) and identifies changes affecting the major
financial assumptions of the plan and progress toward the implementation of new projects
and programs.
• Metro also engages in short-range transit planning for the Washington metropolitan area.
Staff provides inputs to the region's six-year Transportation Improvement Program (TIP)
and identifies the capital investment needs to support the existing regional transit system
and regional service expansion.
• The Office of Inspector General (OIG) develops an annual work plan each year. The
Board’s Audits and Investigations Committee provides input and approves the work plan,
which covers audits, evaluations, and investigations. Furthermore, completed audit and
evaluation reports are submitted to the Board via the Audits and Investigations Committee.
• Recommendations for improvements are based on audits and evaluations performed by the
OIG. Audits are performed in accordance with Government Auditing Standards, while
evaluations are performed in accordance to the Council of the Inspectors General on
Integrity and Efficiency’s Quality Standards for Inspection and Evaluation. These
recommendations, management’s action plans and progress toward implementation are
periodically reported directly to the Board. Semi-annual reports to the Board and
significant stakeholders provide an overview of work performed by the OIG as related to
the annual work plan.
Financial Standards – Business Planning Parameters
• Passenger revenue forecasts are derived from historical ridership and revenue trends as
well as forecasts of regional growth in population and employment. If ridership may be
affected by actual or proposed fare policy change, the impacts on ridership and average
fare forecasts are based on conservative estimates.
• The Board reviews and updates the fare policy on a regular cycle. Management may
propose fare modifications to achieve transit ridership improvements as well as to maintain
financial sustainability.
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