EUPTA accepts FY2024 audit; board hears finance report showing revenue pressures

The Eastern Upper Peninsula Transportation Authority on March 4 accepted the FY2024 audit and approved routine finance items as staff outlined tightening operating conditions.

Auditors from Anderson & Tackman presented the FY2024 audit. Auditor Ken Talsma told the board EUPTA received a Modified Opinion and reviewed liabilities, noting the agency's combination of bus service and a ferry system creates unique accounting items. Talsma described pension adjustments under GASB Statement 68 and said the inclusion of former Neebish employees as full-time staff contributed to some pension increases. The board voted unanimously to approve the audit report as presented.

Finance Director Akemi Gordon then reviewed January financial activity and operational trends. She said January bus revenue fell about 6.5 percent compared with the prior period, while expenses for buses and ferries rose (ferry expenses increased roughly 4 percent). Gordon described payroll timing as a driver of month-to-month expense variability, and noted that federal Section 5311 funds now comprise about 18 percent of operating revenue while state reimbursement runs near 34 percent. She said Michigan Public Transit Association is working with a lobbying firm to seek increased local bus operating funds in the state budget.

Board members moved and carried approval of the prior month's accounts payable and EFT transfers and accepted the finance director's report. Directors discussed the end of COVID-era funding received in 2020 and staff said operating funding has fallen approximately 10 percent over the last two years; the agency is building 9—1 months of operating reserves and has set aside catastrophic funds to manage cash-flow risk.

What happens next: the board will continue routine budget oversight; no further formal votes were scheduled on new revenue or budget measures at this meeting.