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2015 Audit Affirms NCTD’s Solid Financial Health

Oceanside CA— The North County Transit District (NCTD) Board of Directors (Board) received a summary of findings from the 2015 Independent Audit at their December 17, 2015 Board meeting. The annual independent audit was completed by the certified public accounting firm of Macias Gini and O’Connell (MGO).

As of January 25, MGO finalized their independent auditor’s report of the FY 2015 NCTD financial statements included in the Comprehensive Annual Financial Report (CAFR). MGO issued an “unmodified” opinion meaning the financial statements present fairly, in all material respects, the financial position of NCTD as of June 30, 2015 and 2014.  Even more noteworthy is that there were no recommendations or negative findings identified in the audit.

“The results of the 2015 audit demonstrate NCTD’s strong commitment to sound fiscal management and strong internal controls,” said Matthew Tucker, NCTD Executive Director.  “The District has made tremendous progress toward fiscal stability and our forward financial planning will continue to strengthen our financial position to ensure that we continue to serve the public transit needs of North County citizens.”

According to the financial statements presented to the Board, NCTD is in strong financial health and employs solid internal controls to ensure that revenue and spending are accurate and consistent with accounting standards. The audit findings confirm the following NCTD financial highlights:

  • NCTD sustained the target balance of a $15 million Board Reserve Fund, which is included in an unrestricted net assets balance of $15.8 million as of June 30, 2015
  • The 2015 audit was the first time agencies like NCTD had to incorporate GASB 68 which requires NCTD to fully account for and expense its pension obligation.  NCTD’s net ending positive result of an unrestricted net assets balance of $15.8 million is significant and indicates the strong fiscal management practices in place.
  • NCTD had an operating surplus of $4.4 million for FY 2015 net of depreciation expense.
  • Expenses were $3.7 million under budget primarily due to cost savings on fuel and professional services activities carrying over into FY 2016.
  • Revenues were $598,980 greater than budget primarily due to recognition of $816,848 of other revenues in FY2015 related to CNG tax credits.
  • In FY 2015, NCTD produced a farebox recovery ratio 22.5% which is comparable to the FY 2014 farebox recovery ratio of 23.5%, and comfortably exceeds the TDA requirement of 20%.  (CAFR p.96)
  • System-wide cost per revenue mile was contained at $10.08, or 3.7% below FY 2014 cost per revenue mile of $10.47. (CAFR p.96)
  • NCTD invested $100.9 million in capital assets in FY 2015. (CAFR p.40)  $83.9 million of that amount was contributed capital from SANDAG projects, comprised mostly of the San Luis Rey Transit Center and Santa Margarita Bridge double track projects.
  • The annual debt service payment of $1.2 million was completed reducing the balance of the outstanding certificates of participation to $29.4 million (CAFR p.39), and;
  • Annual ridership for NCTD reached an all-time high of 12,640,292 for FY 2015 with record ridership on SPRINTER, LIFT, and FLEX.

The CAFR audit report can be accessed online at: http://www.gonctd.com/wp-content/uploads/2013/03/Fiscal-Year-2015-Actual-PDF.pdf

About the North County Transit District

The North County Transit District is a public transportation agency providing 12 million passenger trips annually throughout North San Diego County and into downtown San Diego. NCTD’s system includes BREEZE buses (with FLEX service), COASTER commuter trains, SPRINTER hybrid rail trains, and LIFT paratransit service. NCTD’s mission is to deliver safe, convenient, reliable and user-friendly public transportation services. For more information visit: GoNCTD.com.