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Board accepts September financial report showing $630,412.57 net loss
Summary
Board approved the September financial report after a staff presentation showing total income of $3,137,309.22 and a net loss of $630,412.57 for the fiscal year to date. Declines in federal and state capital grants and higher insurance and depreciation costs were cited as primary drivers. The board voted to accept the report by roll call.
The board accepted the September financial report after a staff presentation showing total income of $3,137,309.22 and a net loss of $630,412.57 for the year to date. Finance staff reported total bank accounts of $623,479.79 and said cash is down about $77,000 versus the prior year but had improved slightly from the prior month.
The presenter said receivables included $411,723.50 "due from federal" sources and $222,713.87 "due from state," both down compared with the prior year, which the presenter described as positive because it indicates grant payments are being received rather than remaining as receivables. Net fixed assets were $1,627,489.55, down about $476,000 from the prior year, a change the presenter attributed to higher accumulated depreciation offset in part by additions to revenue vehicles.
On the revenue side, operating revenues were $182,366.67, local contributions roughly $171,000 (tax levy), state operating grants $1,216,964.31 (down about $209,000 versus prior year) and federal operating grants $1,433,043.70 (down about $1.2 million, mainly on the capital grant side). The presenter said the year-to-date income decline — about $1.3 million — was largely driven by reduced capital grant activity related to last year's bus purchases.
On expenses, labor totaled $1,727,936.65 (up about $47,000), benefits $259,675.71 (down about $53,000), repairs and maintenance roughly $192,000 (up about $98,000), and bus insurance $267,588.80 (up about $193,000). Professional fees totaled $349,792.97 (down about $36,000), and depreciation expense was $433,571.34 (up about $102,000). The presenter also noted a $59,543 increase in ineligible expenses caused by a Michigan transit pool retroactive adjustment, and a loss on disposal of assets of roughly $139,000.
The presenter said that, if the federal and state receivables and corresponding payables were settled, liquidity could improve by about $375,000. Board members asked whether federal payments had arrived despite the government shutdown; staff confirmed a federal payment was processed on Sept. 5 and said MDOT year-end timing delayed some October payments but that payments were expected in November.
A motion to accept the financial report as presented was made, seconded and carried by roll call.
