Independent auditors give CTA a clean opinion; finance staff present April results and a $3.35M CIP true‑up

Independent auditors told the Board's Finance, Audit and Budget Committee they issued unmodified (clean) audit opinions on the Authority’s 2024 financial statements and the federal programs tested, and CTA finance reviewed preliminary April operating results and proposed a small amendment to the 2025 capital improvement program.

Auditors and federal compliance: Christine Torres of Crowe and Anna Austan (Adelphia, DBE subcontractor) reported the annual financial and single‑audit work for the year ended Dec. 31, 2024. Torres said Crowe issued an unmodified opinion on the financial statements and found no reportable findings under government auditing standards. Austan reported Crowe issued an unmodified opinion on compliance for the major federal programs tested (the Federal Transit Cluster and the Transportation Infrastructure Finance and Innovation Act program), covering roughly 99% of federal expenditures subject to testing; no federal findings were reported.

Monthly results and public funding: Tom McCone (Finance) briefed the committee on April results. Fare and pass revenues were slightly under budget for the month and trailing last year; non‑fare revenues (notably investment income) were positive to budget. Year‑to‑date system generated revenue was reported favorable overall by $2.9M and $7.5M ahead of last year on system revenue. On the expense side, labor was slightly unfavorable but within a fraction of the budget; total operating expenses were reported favorable year‑to‑date by approximately $20M. Sales tax receipts (most recent month available: February) were positive to budget and have driven a year‑to‑date favorable public funding variance of about $23.7M.

CIP amendment: Finance presented an ordinance amending Ordinance 024‑143 to incorporate CTA’s final share of FY2025 FTA formula funds — a net 2025 increase of $3,350,000 and a regional FTA figure reported as $444,400,000 for CTA, with the CTA five‑year CIP totaling approximately $6,986,000,000 after the true‑up. Staff said timing required the CIP amendment so CTA could submit the FTA grant application by mid‑June and execute the grant before the fiscal year close.

Board action: The committee placed the CIP amendment on the omnibus for board approval and recommended the omnibus for board approval; roll calls in committee recorded unanimous yes votes on placing the item on the omnibus and on the omnibus recommendation.

Why it matters: A clean audit and positive revenue variances on non‑fare sources and sales tax give CTA management and the board greater clarity about near‑term financial position. The CIP amendment is a procedural step required for finalizing FY2025 FTA grant funding and advancing purchases and capital projects described in the CIP (fleet overhauls, accessibility, station and facility work, security camera replacement and capital financing obligations).