Notes to SEFA
Management has reconciled the expenditures reported in the Schedule of Expenditures of Federal Awards to those amounts reported in the annual or final cost reports. Unallowable differences, if any, have been disclosed to the auditor.
The State’s BPT requires DTC to include supplemental schedules to the financial statements. These Supplemental schedules are included on pages 19-30 of this report. These schedules include eligible expenses to be reimbursed with state funds that have been appropriate for mass transit operating assistance under ACT 51. The schedules also detail ineligible expenses that cannot be reimbursed. The supplemental schedules detail any Section 5307 (capital funding) and any other grant funding used to pay operating expenses and either subtracts them out as ineligible or does not include them in the total expense to be reimbursed. • No Office of Passenger Transportation (OPT) approved cost allocation plans are required and therefore none were used in the preparation of the financial statements. • All expenses associated with auxiliary transportation revenue, which contains advertising revenue, are subtracted out as ineligible. • The depreciation expenses of $2,239,568 on assets purchased with state or federal grant funds are shown as ineligible expenses. • The only retirement benefit offered by DTC is a defined benefit plan. Pension costs incurred were calculated pursuant to GASB 68 rules. The total pension recovery recognized as calculated is $1,097,931 and the entire amount was recorded on the books as a credit to expenses. DTC contributed $303,885 during the year and therefore $1,401,816 is added back as negative ineligible pension. DTC did not incur, nor pay, any OPEB. • All expenses associated with Other Federal Transit Contracts and Reimbursements and Other MDOT Contracts and Reimbursements revenue have been subtracted as ineligible. • The portion of ineligible association dues are reported as ineligible lobbying expense. • All expenses associated with miscellaneous revenues are subtracted out as ineligible.
The methodology used for compiling miles and nonfinancial information used to allocate costs has been reviewed and the recording method has been found to be adequate and reliable.
Amounts received or receivable under grant programs are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute a liability of DTC. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although DTC expects such amounts, if any to be immaterial.
All subsequent events relative to the major programs were evaluated through December 18, 2025, the date the accompanying reports were available to be issued. No significant event was noted that required adjustment or disclosure to the accompanying reports.