TriMet today released its 2013 Annual Audited Financial Report for Fiscal Year June 30, 2013 that includes audited financial statements. Moss Adams, LLP conducted the annual independent audit of the agency’s financial statements and gave TriMet clean opinions in all areas audited. In addition to their financial statement opinion, Moss Adams also reports on compliance with laws and regulations applicable to federal programs and compliance with Oregon statutes as prescribed by the Secretary of State. Moss Adams reported that there were no instances of non-compliance noted.
Since TriMet was established back in 1969, TriMet has undergone annual independent audits related to financial and program compliance under both federal and state regulations. In 1985, TriMet added annual federal single audits as the agency began receiving federal funds for preventive maintenance, as well as light rail capital construction. The State of Oregon requires that financial statement audits be complete no later than December 31 each year. TriMet strives for a timely release of annual audited financial information, and consistently produces the report within 90 days after the end of the fiscal year.
Financial results for Fiscal Year 2013
TriMet’s 2013 Annual Audited Financial Report provides an overview and analysis of key data included in the agency’s financial statements. TriMet’s largest revenue source, the Employer Payroll and Self Employment Taxes, totaled $259 million for FY13. These revenue results are in line with projections included in TriMet’s FY 2014 operating budget adopted in May 2013.
Key cost structure trends
TriMet is working to address its future liabilities associated with its employee Defined Benefit pension plan and Other Post-Employment Benefits (OPEB). As changes are made to benefits, it reduces future liabilities and improves the agency’s long-term financial stability.
- TriMet’s unfunded union pension plan liability is valued at $239 million. The agency has increased contributions with a goal of achieving fully funded status in 15 to 20 years. As a result of strong investment performance and increased funding into the union pension plans, TriMet’s financial reports show that the Defined Benefit plan was 59 percent funded at fiscal year-end (compared to 52 percent in the prior year). The $239 million in Unfunded Accrued Actuarial Liability in FY13 compares to $266 million in the prior year.
- TriMet’s unfunded liability for retiree health care benefits (OPEB) at fiscal year-end was $852 million (compared to $901 million in the prior year). The reduction in the future liability is the result of changes in medical insurance benefits associated with the 2012 labor arbitration award.
Secretary of State Audit
In additional to the numerous federal and state audits and reviews on a regular basis, the Secretary of State is currently conducting a performance audit, as required by House Bill 3316. This is the first time the Secretary of State has conducted an audit of TriMet. The audit is scheduled to be complete by January 2014.