1. Ohio Department of Transportation Office of Transit
Rural Roundtable
Wednesday, July 31, 2008

2. Marianne Freed, Administrator, Office of Transit
Welcome and Introductions
Marianne Freed, Administrator, Office of Transit
Welcome. Let me introduce the ODOT staff that are present. Some will be on stage later, but for new folks, I want to help you put a face with a name.
Just a couple of things I want to point out for future reference.
1. We are looking at having future trainings and roundtable meetings as a video conference. You should have received a handout that lists all of the locations of the ODOT district offices. This is where you would go to participate in video conferences. 2. 3. 4.
I want to introduce next Michael Miller and Jana Cassidy???. From the Division of Finance, Office of Audits. Michael started his career at ODOT in the office of transit and now conducts audits for transit systems and Metropolitan Planning Organizations. He is going to provide you with an overview of our audit process and highlight some of the common findings from financial audits performed so far.

3. Financial Audits Division of Finance Office of Audits

4. State Budget Marianne Freed Administrator ODOT, Office of Transit
We are already in the process of developing our budget for the biennium. As many of you area aware, the tax revenues for Ohio, and basically across the nation, are down due to the sagging economy. As result, for our GRF funds in 2010 and 11, we have already been asked to take 10% more out of what we currently have in 2009 which represents a 10% cut from our original allocation. Obviously, this will affect what we are able to provide to the transit systems. You have not received your 2009 allocations because we have not concluded the process of developing a fair way to distribute the few state dollars that we have.

5. Timeline
State Department Budgets to Office of Budget and Management – September 15
Governor presents Executive Budget to State Legislature – February 2
FYI, the process for the next biennium budget will be that ODOT must submit their budget requests by September 15 to OBM. The Governor’s budget is expected in early February and then we go into the legislative budget process and, hopefully, have something in place for by June 2009.
So, during the next month, we may be calling you for information and we will be compiling data to use during the budget hearings for late winter, early spring.
Next, Seth McDonald will be providing information regarding the milestone setting process.

6. Charter Update
Marianne Freed

7. Charter Update Reporting Requirement Changes Updated Q & A
Other Manual Updates
Charter:
New Regulations were issue with a start date of April 30, 2008
Training for Rural systems was held in April and a new Charter Manual was issued. This is a work in progress that will be updated as FTA makes changes. FTA currently reviewing the manual and we hope to at least receive verbal comments
You may refer to the Charter manual for a complete overview of the current charter requirements including the most recent FTA q & a and the Federal Register notice.
Reporting Requirements must now be met by ODOT. Rural systems were originally told that they would do their own reporting, but now it must come from ODOT so we will be collecting the data from you using the log sheets that were provided. If you need these log sheets we have some today. The dates for reporting are July 15, Oct. 15, Jan 15 and April 15.
Please continue to contact our office with any questions regarding charter. We are answering each one.

8. Annual Conference Marianne Freed Dates: May 20-22 Place: Dayton, Ohio
Survey

9. Milestone Dates
Seth McDonald Rural Program Analyst ODOT, Office

10. Milestone Dates Setting Milestone dates Setting Vehicle Milestones
Milestone Amendments
Target = Milestone Dates
Just to give an overview, Milestone dates are set using the dates provided in the 4-year Capital and Operating Plans. We have actually already sent out our list of projects for you to provide milestone dates on. The purpose of the list is for you to provide corresponding Milestone Dates for each of those projects. You will be required to award PO’s based on the dates you provided. If we have not received those back by now, they’re actually “LATE”.
Anyway, Milestone dates are typically given for the award of vehicles, as they are most common capital item. Please try to provide your milestone dates after February (to allow for Term Contracts to be in place) and also use the last day of the month in which you intend to order your vehicle. It is permissible to award your project before your milestone date as long as there are term contracts in place to do so.
As a side note regarding the vehicle milestones for this past year, I want to make everyone aware that you will not be held responsible if we do not have term contracts in place when you intended to order your vehicles. For the upcoming year, our term contracts are already in place, so we don’t anticipate this being an issue.
Should you ever need to amend your Milestone Date, you will need submit a letter to our Administrator with written justification as to why you are requesting to amend your Milestone Date. This could result in delayed funding.

11. Milestone Dates Designated Grantee Milestones Non-designated Grantees
Required Documents
Forms available on website
Although ODOT purchases vehicles on behalf of Designated Grantees, they are also required to have a milestone dates. This date should, again, be after February and before the end of May.
For all other grantees, once you order your vehicle, please provide your Rural System Rep with a copy of the purchase order and all pertinent info if it is not on the PO (date, amount, vendor, etc). Once your vehicle is actually delivered, you will want to get that date to ODOT as soon as possible.
When you submit your capital invoice to ODOT, please also remember to attach a copy of the vendor invoice and any other relevant supporting documentation, such as delivery checklist, vendor performance, etc.
And now I’ll turn it over to Kim White to talk about Civil Rights.

12. Civil Rights
Kim White Training and Compliance Officer ODOT, Office of Transit

13. Civil Rights
New Circular FTA C A Title VI and Title VI-Dependent Guidelines for Federal Transit Administration Recipients, published December 14, 2005
Major changes dealt with statewide planning and Limited English Proficiency (LEP)
LEP will be covered in more detail later. Statewide planning is a requirement under SAFETEA-LU. States must coordinate and collaborate with other planning partners. It states the state plan can be policy and also deals with the STIP with must be approved by FHWA and FTA. Both the planning aspect of Title VI and LEP will be covered at a training we are offering later this year.

14. Title VI
Part of the 1964 Civil Rights Act Title VI – Nondiscrimination in Federally Assisted Programs and Activities “No person in the United States shall on the grounds of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.”
Preventing discrimination is governed by Title VI of the 1964 Civil Rights Act and is tied to all federal program funds.

15. Title VI cont. What is the Purpose of Title VI?
What is the Intent of Title VI?
What is the Purpose of Title VI?
To ensure that public funds are not spent in a way that encourages, subsidizes, or results in discrimination
Title VI therefore bars intentional (disparate treatment) and unintentional (disparate impacts or effects)
What is the Intent of Title VI?
To eliminate barriers and conditions and prevent minority, low income, LEP, and other disadvantaged groups and persons from receiving access, participation and benefits from Federally-assisted programs, services and activities.

16. Title VI cont. Other Nondiscrimination Authorities
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970
Section 504 of the 1973 Rehabilitation Act
The 1975 Age Discrimination Act
Executive Order on Environmental Justice (EJ)
Executive Order on Limited English Proficiency (LEP)
Implementing Regulations
The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 prohibits unfair and inequitable treatment of persons displaced or whose property will be acquired as a result of Federal and Federal-aid programs and projects.
Section 504 of the Rehabilitation Act of 1973 states that no qualified handicapped person shall, solely by reason of his (or her) handicap, be excluded from participation in, be denied the benefits or, or be subjected to discrimination under any program or activity that receives or benefits from Federal financial assistance.
The 1975 Age Discrimination Act prohibits individuals from being discriminated against because of age. This is for persons of any age and they cannot be excluded from participation in or denied the benefits of any Federal program. This differs from the Age Discrimination in Employment Act of 1965 dealing with people over 40.
Environmental Justice demands fair and equitable treatment for all individuals. It demands an end to unjust, unfair, unequal discriminatory policies and practices. I will be briefly discussing this a little later.
LEP will also be covered later.
And of course there are implementing regulations that go along with Title VI. I’ve only covered a few of the nondiscrimination authorities.

17. Title VI cont. New Title VI information will be required
Additional Training later this year on Civil Rights
Identify and address Title VI activities and issues including Limited English Proficiency
Civil Rights Training – Wednesday, September 24, Columbus, auditorium.

18. Title VI cont. USDOT’s Title VI Regulations (49 CFR Part 21)
Obligates recipients to:
Comply with Title VI
Include Title VI Provisions in its contracts
Requires recipients’ execution of Title VI assurance as a condition of Federal aid
Provides for sanctions in the event of noncompliance
The Title VI compliance will be included in your certs and assurances.

19. Title VI cont. Executive Order 12898 – Environmental Justice
Demand for fair and equitable treatment (toward low income and minority persons/population)
Environmental Justice Responsibilities
Have adequate methods or mechanisms to research, collect, and analyze data;
Give consideration to data in the project development process;
Use available data in the transportation decision-making process;
Demonstrate good faith effort to ensure disproportionate and adverse impacts on EJ populations are prevented, minimized, reduced, or mitigated.
Ensure identified populations are duly notified and have reasonable access to public involvement opportunities and information in all phases of the project;
Ensure and explore innovative and proactive ways of improving relationships with stakeholders;
Provide technical assistance and guidance on EJ issues and activities.

20. Limited English Proficiency (LEP)
Covered in Title VI Circular and by Executive Order Who is a LEP Person?
Who is a LEP Person?
A person who does not speak English as primary language and has limited ability to read, speak, write or understand English

21. Limited English Proficiency cont.
What is required of recipients?
Assessment
Plan of Action
Must follow guidelines from December 17, 2007 letter
Sound measures/reasonable steps for meaningful access to programs and activities by LEPs.
– Four Factor Analysis
– Five Elements

22. Limited English Proficiency cont.
Four Factor Assessment
Demography
Frequency
Importance
Resources
Four Factor Assessment
Demography – number and/or proportion of LEPs served and languages spoken in service area;
Frequency – rate of contact with service or program;
Importance – nature and importance of program/service to peoples lives
Resources – available resources, including language assistance services and costs.

23. Limited English Proficiency cont.
Plan of Action – Five Elements
Identification of volume and location of LEPs and LEP communities
Language assistance measures
Staff
Outreach measures
Monitoring and Evaluation of Efforts
Plan of Action – Five Elements
Identification of volume and location of LEPs and LEP communities
Language assistance measures – Types of languages services available; how to respond to LEP callers; how to respond to LEPs in person; how to respond to written communication; types of document/info to translate
Staff – Knowledge of policy and procedures, linguistic diversity and sophistication, cultural sensitivity and communication skills, training and experience
Outreach measures – Notification methods on special language assistance
Monitoring and Evaluation of Efforts

24. DBE Goal Projections Required of all Recipients
Must be submitted to ODOT electronically
The ODOT report is due to FTA August 1
Will be required to resubmit when CY 2009 allocations are awarded
This years goal projection form was been revised; however, since you are used the CY 2008 allocation amounts to determine whether or not you are a threshold recipient, your status probably won’t change from last year. Once you receive your CY 2009 allocation, you will need to resubmit your goal projection. For the next FY, we want to establish a focus group to look at the form to make it as easy and streamlined as possible.
All Section 5311 recipients must submit a goal projection to the Office of Transit electronically every year regardless of whether they are a threshold recipient or non-threshold recipient. Our report is due to FTA August 1. The system deadline for reporting to ODOT will be established accordingly.

25. DBE Con’t. Threshold recipient
Must publish goal
Must submit plan if not already on file with ODOT or if revisions are made
Will be required to submit semi-annual reports
Questions: Contact Kim White at or
If the recipient expects to award contracts exceeding $250,00 in Federal Funds, excluding vehicles, during FFY 2009 or any year, it would be considered a threshold recipient.
Threshold recipients are required to have a DBE program which in addition to the goal projection requires the recipient to public a public notice outlining the proposed goal and have an approved DBE plan in place. In addition, threshold recipients are required to submit semi-annual reports to ODOT.

26. Term Contracts and Cooperative Purchasing
Josh Gearhardt Public Transportation Manager ODOT, Office of Transit

27. Term Contracts and Cooperative Purchasing
Who can participate with ODOT?
What is available?
Where can I get more information?
Political subdivisions defined as any County, Township, Municipal Corporation, Conservancy District, Township Park District, Park Districts created under Chapter 1545 of the Revised Code, Port Authority, Regional Transit Authority, Regional Airport Authority, Regional Water and Sewer District, County Transit Board and State University or College as in Division (A)(1) of Section of the Revised Code may participate in ODOT's Cooperative Purchasing Program.  In addition, Board of Mental Retardation and Developmental Disabilities are also eligible to purchase. 
Vehicles available under this program include:
SMV- Standard Minivan
MMV- Modified Minivan
CV- Converted Van
LTN - Light Transit Vehicle, Narrow Body
LTV- Light Transit Vehicle, Wide Body
Steel Cage
Honeycomb Fiberglass Cage
Fiberglass Steel Cage
2008 Vehicle Catalog & Vehicle Checklist

28. ODOT Term Contracts Where to Get Term Contract Information
Office of Transit Website
ODOT Office of Contracts Website
Office of Transit holds quite a bit of information, from the 2008 vehicle catalog, to checklists and forms, and any required documentation- Buy America Certification
Office of Contracts has information that includes the Office of Transit Term Contracts, in addition to all other term contracts offered through ODOT for other vehicles and equipment.

29. Ohio Revised Code Section 4513.50
Inspections of passenger transportation vehicles
All private non profit owned vehicles without county tags must be inspected annually
Vehicles exempted are any smaller than an LTN
LTN’s and larger have a GVW or more than 10,000 lbs and are subject to the inspection law

30. Intercity Update
Brett Harris Rural Transit Program Coordinator ODOT, Office of Transit

31. Intercity Update Intercity Bus Program 49 USC Section 5311(f)
Budget of $2.8 M CY 2009
Based on 15% of Apportionment
Safe, Accountable, Flexible, Efficient, Transportation Equity Act: A Legacy for Users (SAFETEA–LU)
New Requirement – Consultation Process
The intercity bus program is defined as regularly scheduled bus service for the General Public; Operates with limited stops over fixed routes; Connecting two or more urban areas not in close proximity; Vehicles have capacity for transporting passenger baggage; Makes meaningful connections with scheduled intercity bus service to more distant points.
The current Federal FY Budget based on 15% of the 5311 Apportionment is approximately $2.8 million dollars. This would be funding that goes towards ICB projects in CY 2009 rural projects
The new requirement for intercity bus under SAFETEA-LU is the addition of a Consultation process. It requires ODOT to include private intercity carriers in the planning process for the provision of IC services.

32. Intercity Update cont. Consultation Process
Identified intercity bus carriers operating in Ohio
Sent letters to carriers requesting input
Held individual consultation meetings
Incorporated their comments
ODOT completed the consultation process in compliance with the SAFETEA-LU requirements. We did this by identifying IC bus carriers operating in Ohio and inviting the carriers to a meeting with ODOT staff to discuss their ideas and suggestions. Then ODOT incorporated their comments into the final IC bus needs study.

33. Intercity Update Intercity Bus Needs Assessment Deliverables
Local IC needs
Current routes
Deliverables
Proposed Routes
Three IC Routes
Feeder Service
Proposed Maps
ODOT needed to assess the current IC needs in Ohio so ODOT contracted with the Lakatos Group to prepare an Intercity Bus Needs Assessment. The study determined the areas that had the greatest transit propensity. It also assessed the local needs for IC service in the areas identified in the study. The study also assessed the current IC routes in Ohio.
The study then provided Deliverables based on information provided not only from local sources but also from rural transit systems, local official and citizens; incorporated the comments from the IC carriers as a result of the consultation process.

34. Intercity Update cont. Rural Intercity Bus Program Policy
Where do we go from here?
Rural Intercity Bus Program Policy
Draft policy sent out for comment
Address annual IC needs
Establishes competitive proposal process
Criteria based selection process
ODOT has drafted an Intercity bus program policy which has been sent out for comment. And also to OPTA. Establishes the need to address the annual needs of the IC bus program. Establishes that ODOT will use a competitve proposal process and will determine the providers of IC services through a criteria based selection process.

35. Training Update
Kim White

36. Upcoming Training September 24 - Civil Rights ODOT – Central Office
Auditorium
October 8 – Marketing
December 9 – Drug and Alcohol Reasonable Suspicion Determination Refresher
Defensive Driving – Hosting a Class
September - will cover what is being certified in grant contract packet
October – overhill – looking into videoconference for all districts
Travel restrictions for Systems?
Planning videoconference in January.
DDC – encourage more on-line; will only be scheduling regional classes for 2009.
Passenger Assistance - ??????

37. Mobile Driver Training Simulator
Survey
Discussion

38. Transit Curriculum WSU – One-credit hour courses
KSU – Program to start August
WSU – one-credit hour courses every quarter. Fall quarter Safety and Emergency preparedness.
KSU – Start in August – One night a week (Tuesday) 3 credits – in Geography Department
Geography – Special Topics
Course will give students an overview of public transportation, modes of transportation, regional networks, funding, legislation, customer service, planning, contracting and technology.

39. Other Drug and Alcohol Changes – Kim White New Freedom – Barb Piper
JARC – Seth Budge
Accrual Accounting Follow-up – Brett Harris
Office of Transit Website – Josh Gearhardt

40. Drug and Alcohol Testing Program Changes
Published in the Federal Register on Wednesday June 25, 2008
Changes go into effect on August 25, 2008
Summary was posted to the listserv and sent in a paragraph on July 1, 2008
The changes require a change to your substance abuse policy.
Must submit an electronic version of the policy changes to ODOT along with a copy of the acceptance by the governing board
All systems must have documentation in place verifying all covered employees received a copy of the revised policy. Review the changes with employees
Ensure service agents are in compliance with the requirements

41. NEW FREEDOM
Barbara Piper
Program Coordinator
ODOT, Office of Transit

42. New Freedom Update PROGRAM OVERVIEW Program Description
Eligible Applicants
Program Appropriations
Eligible Projects
The goal of the New Freedom Program is to provide new public transportation services and public transportation alternatives beyond those required by ADA that assist individuals with disabilities with transportation. New Freedom seeks to reduce barriers to transportation services and expand options for people with disabilities.
Eligible applicants include public entities who provide public transit service, private nonprofit organizations designated by a public entity to provide public transit service, or a public entity who is a recipient of Ohio Coordination Program funds. And Public entities receiving Ohio Coordination Program funds.
ODOT administers the NF Program on behalf of Ohio’s small urbanized (under 200,000) and rural areas. The FY 2008 appropriation for Rural is $710,395 and small urban $494,460.
Federal funds may be used for operating and capital.
Operating – 50% of eligible project expenses
Capital – 80% of eligible project expenses
The match may be provided from various sources. This includes CDBG, JFS, local operating funds, contracts, etc.

43. 2008 NEW FREEDOM PROGRAM SUMMARY
Applicant Types
Proposals Received
2008 Program
6 applications received
5 were rural applicants
1 was a small urban applicant
Proposals were received from:
4 private non-profit agencies (includes 1 Ohio Coordination Program grantee)
2 public transit systems (1 rural, WSOS Community Action and 1 small urban)

44. NEW FREEDOM PROJECTS AWARDED
Operating
Capital
Available to award - $1,951,890
Total award - $856,393
$586,105 awarded for operating – Small Urban $47,250 & Rural $538,855
$165,721 awarded for capital which was all Rural
The following types of operating projects were funded:
New fixed route outside of current service area, includes feeder service
Expansion of hours and days of service
Expanded service to include door-thru-door service for the elderly & disabled
Provide volunteer personal care attendants
Provide a volunteer coordinator
Provide travel training for elderly & disabled
The following types of capital projects were funded:
Purchase 2 expansion vehicles
Purchase mobile radios and base stations
Purchase computer equipment

45. JARC
Seth Budge
Program Coordinator
ODOT, Office of Transit

46. JARC Update PROGRAM OVERVIEW Program Description Eligible Applicants
Program Appropriations
Eligible Projects
The goal of the JARC program is to improve access to transportation services to employment and employment related activities for welfare recipients and eligible low-income individuals and to transport residents of urbanized areas and nonurbanized areas to suburban employment opportunites.
The following are eligible applicants for JARC funding: a) Public entities providing public transit service; (b) Private nonprofit organizations designated by a public entity to provide public transit service; and (c) Public entities receiving Ohio Coordination Program funds.
ODOT administers the JARC program on behalf of Ohio’s small urbanized and rural areas. Appropriations for the two are $1.4 - $1.6 million per year over the life of SAFETEA-LU.
Federal funds may be used for operating, capital, and planning projects. Program funding is intended to reimburse the applicant based on actual expenditures up to the maximum federal participation rate listed below:
  Operating - 50% of eligible project expenses (less farebox revenue).
Capital - 80% of eligible project costs
Planning (project specific) – 80% of eligible project costs
5. The local share (local match) may be provided from various sources. Two or more sources of funds may be combined to provide the local match required.

47. 2008 JARC Program Summary Applicant Types Proposals Received
12 applicants submitted 16 proposals for JARC assistance
9 were rural applicants
3 were small urbanized applicants
Proposals were submitted by the following applicant types:
2 public bodies that are not a transit systems, 1 approved
5 transit systems – 3 rural and 2 small urbanized, 4 approved (Fayette and Pike)
3 private non-profit organizations (not designated grantees for public transportation), 3 approved
2 coordination grantees, 0 approved
$1,420,819 in JARC funds available to award
$1,200,094 awarded to rural applicants
$220,725 awarded to small urbanized applicants
Of the rural applicants
$767,697 was awarded to private non-profit organizations (not designated grantees)
$432,397 was awarded to public transit systems
Of the small urbanized applicants
$99,000 was awarded to a public body that was not a transit system (JFS)
$121,725 was awarded to public transit systems

48. JARC Projects Awarded Operating Capital Planning
Of the $1,420,819 available
$1,078,549 awarded for operating assistance
$277,867 for capital assistance
$64,403 for planning assistance
The following types of operating projects were funded:
Circulator between Piketon, Waverly and County One-Stop
Expansion of hours and days of service for JFS clients to get out-of-county jobs and training
Expansion of service area and hours/days to cover entire county for more individuals
Expansion of service from 90 days per client to as long as is needed as long as there is capacity
Expansion from City to County to reach new employers
New route deviation service to developing employment area that is outside current service area
Work trip shuttle service to major area employer for third shift
The following types of capital projects were funded:
Purchase 4 expansion vehicles
Purchase base station and mobile radios
Mobility manager to work with employers, one-stop and public to generate work-trips and to facilitate linkages with existing transportation providers
4. Planning – short term planning leading to implementation of services – to take basic need from coordinated plan and fill in details leading to implementation

49. JARC & New Freedom Lessons Learned
Coordinated Plan
Project Summary
Outcomes/Program Measures
Coordination
Compliance
Lessons learned:
Applications will not even be reviewed without the existence of a current adopted coordinated plan.
Project summary issues
Project summary is to provide a project description not a description of the applicant
Proposed service did not match the program purpose for JARC or New Freedom
Proposed project was not directed to target population
Proposed project only listed capital to be purchased—not a description of service with capital needed to support the project
Project summary was too general. Needed more detail.
Outcomes
Outcomes not sufficiently detailed or did not support the project goals
Too little effort in developing outcomes beyond program measures
Coordination
No coordination partners or evidence of coordination with partners
Compliance
Applicant unwilling to comply with FTA requirements

50. What’s Next for JARC & New Freedom
Application cycle
ODOT will go out for proposals again this fall. The same proposal format that was used in the first cycle will be used again.

51. Accrual Accounting
Brett Harris

52. Accrual Accounting Update
Effective January 1, 2008
Full Accrual Accounting Required
SAFETEA-LU
FTA Circular 9040.F
Uniform System of Accounts (USOA)
Accounting guidance provided
Effective 1/01/08 ODOT required all grantees to switch from the cash basis of accounting to accrual accounting. This is in accordance with the SAFETEA-LU as stated in FTA Circular F.
ODOT is required to report costs incurred and available balances annually on an accrual basis, on the Financial Status Report in FTA’s Transportation Electronic Award Management (TEAM) System.
Those transit agencies that use cash-basis or encumbrance-basis accounting, in whole
or in part, must make work sheet adjustments to record the data on the accrual basis as
described in the USOA.

53. Accrual Areas of Concern
Contract Revenue
E&D Grant Revenue
Vehicle Insurance
Record Revenues Earned
Record Expenses Incurred
We still have some systems that are not reporting using the full accrual accounting. Major areas of concern that we are finding is in the reporting of Contract and E&D revenues. And some are still not reporting vehicle insurance on an accrual basis.
All revenues must be reported as earned and expenditures as incurred.

54. Benefits of Accrual Accounting
2nd Quarter Invoice
$1 million Annual Budget
$405,000 Annual Contract Revenues
E&D $6,000 annually
$60,000 Vehicle Insurance
Following is an example: Assume a system with a $1 million annual budget. Annual Contract Revenues are $405,000; E&D $6,000 and vehicle insurance of $60,000. All other expenses and revenues appear to be reported on an accrual basis.

55. Cash Accounting 2nd Quarter 2008
Under Cash Method Report:
$473,133 Total Expenses
Under reported by $30,000 vehicle insurance
No E&D reported
$321,747 Contract Revenue Reported
Overstated by $119,247
Under the cash methodology total expenses are understated by $30,000 due to the $60,000 of insurance not be reported until paid. So $30,000 of incurred expenses are not being recorded.
E&D is not reported thus understating revenues by $3,000.
Contract revenue in this case is overstated due to receiving a large contract payment up front. But all of the contract revenue has not been earned at this point and should be spread out over the year as rides are actually taken against contract.

56. CASH RESULTS Effect: Federal Eligible $126,426 State Eligible $0
Federal OWED back $93,072
State OWED back $30,558
The effect is a federal eligible amount of $126,426 but the system has received $219,498 resulting in a federal overpayment of $93,072.
There is the same effect with the state. The state eligible is $0 thus causing an overpayment of $30,558.

57. Accrual Accounting 2nd Quarter 2008
Under Accrual Method Report:
$503,133 Total Expenses
Reported $30,000 vehicle insurance
$3,000 E&D reported
$202,500 Contract Revenue Reported
½ of $405,000 (adjustments should be made throughout the year as revenue changes)
Using the accrual methodology $30,000 more expenses are reported as incurred for ½ of the vehicle insurance.
$3,000 of E&D revenue is appropriately reported.
$202,500 of contract revenue is reported versus the $321,747 as reported under the Cash Methodology. Please note that I am using exactly half of the contract revenue which may not be true. You must record the revenue as earned. So you may have more or less than ½.

58. ACCRUAL RESULTS Effect: Federal Eligible $239,237
State Eligible $33,437
Federal underpayment $19,738
State $0 nothing owed back
The federal eligible is now $239,237 versus 219,498 received. This now resulting in an underpayment of $19,738 versus as compared to an overpayment under the cash method. The state is eligible is $33,437 versus $31,000 received. So $0 is owed back on the state and ODOT does not make up for underpayment on State. State is payment out at 1/12 per month unless there is an overpayment.

59. Net Effect
2nd Quarter Adj.
Accrual Accounting
Cash Accounting
Federal Eligible
$239,237
$126,426
Federal Received
$219,498
Adjustment
$19,739
-$93,072
State Eligible
$33,437 $0
State Received
$31,000
$2,437
-$31,000
Net Effect
Positive Cash Flow
Negative Cash Flow
This table simply shows the net effect of using both methodologies. The Cash method creates a negative cash flow situation whereas the accrual method results in a positive more even cash flow situation.

60. Other Areas of Concern Farebox Revenue Deposits
Must deposit not less than every 3 days
ORC Requirement
Holding farebox revenue & depositing less frequently than every 3 days – illegal ORC & collect last day of month – credit that month regardless of when deposited, same with contracts.

61. Office of Transit Website
Currently in Development
Website is online!
Continuing to add content
Please submit comments to:
Rena Puckett:

62. Questions