HomeMy WebLinkAbout01/16/24 - 03/18/24 GREATER ROANOKE TRANSIT COMPANY
BOARD OF DIRECTORS
January 8, 2024
Joseph L. Cobb, President, and Members
of the Greater Roanoke Transit Company
Board of Directors
Dear President Cobb and Members of the Board:
The regular meeting of the Greater Roanoke Transit Company Board of Directors will be
held on Tuesday, January 16, 2024 at 12:30 p.m., in the EOC Conference Room,
Room 159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W.,
Roanoke, Virginia.
Sincerely,
ateZi4./iJ Y)16e4T
Cecelia F. McCoy
Secretary
pc: Robert S. Cowell, Jr., Vice-President of Operations, GRTC
Angela O'Brien, Assistant Vice-President of Operations, GRTC
Timothy Spencer, General Counsel, GRTC
Laura M. Carini, Assistant General Counsel, GRTC
Amelia C. Merchant, Treasurer, GRTC
Troy A. Harmon, Municipal Auditor
Kevin Price, General Manager, Valley Metro
Ron Parker, Assistant General Manager, Valley Metro
GREATER ROANOKE TRANSIT COMPANY
BOARD OF DIRECTORS
Tuesday, January 16, 2024
12:30 P.M.
EOC CONFERENCE ROOM
ROOM 159
ACTION AGENDA
1. Call to Order— Roll Call. Director Maxwell Dillon was absent.
President Cobb asked for a motion to allow Director Michalski-Karney to
participate in the Greater Roanoke Transit Board of Directors meeting via
telephone. Director Keen made a motion to allow Ms. Michalski-Karney to
participate in the meeting and was seconded by Director D'Ardenne. It was voted
unanimously by the Board of Directors to allow participation in the meeting via
telephone.
2. Approval of Minutes: Regular meeting of GRTC held on Monday, November 20, 2023.
Without objection,the reading of the Minutes were dispensed with and approved.
3. Reports of Officers:
a. General Manager:
Management Update
1. Micro-Transit Project Update
2. Transit Strategic Plan (TSP) Update
3. Finance Department/Audit— Update
4. Transit Equity Day 2024
5. GRTC Ridership Update
Without objection, the Management Update was received and filed.
4. Presentation — MetroFLX
Without objection, the MetroFLX presentation was received and filed.
5. Authorization to approve and adopt Fare Free Transit Equity Day Service —
February 5, 2024.
Adopted Resolution. (6-0), Director Maxwell Dillon was absent.
6. Authorization to File for FTA Operating/Capital Assistance and VDRPT
Operating/Capital Assistance for FY'25.
Adopted Resolution. (6-0), Director Maxwell Dillon was absent.
7. Other Business. The General Manager enthusiastically announced the Third
Street Bus Station was named Project of the Year by the American Public Works
Association Mid-Atlantic Chapter in the structures $5 million to $25 million
category.
8. Next Meeting: Monday, March 18, 2024 at 12:30 p.m., in the EOC Conference
Room.
9. Adjournment: 1:25 p.m.
Via I+ V
Mee
Greater Roanoke Transit Company(GRTC)
Board of Directors Meeting
Management Update
January 16, 2024
Planning and Special Projects
Micro-Transit Project Update
MetroFLX, Valley Metro's micro-transit extended service pilot project, is scheduled to launch on Monday
January 22, 2024. MetroFLX passengers will be able to schedule trips beginning Wednesday January 17, 2024.
Transit Strategic Plan Update
A key component of the Transit Strategic Plan (TSP) is to reach out to stakeholders to gather input on
the priorities of the community regarding transit system priorities. For Valley Metro, the study team is
using the following primary strategies:
1. Periodic meetings with the Transit Passenger Advisory Committee (TPAC) and the Greater
Roanoke Transit Company(GRTC) Board of Directors
2. Origin-Destination Survey—while this survey effort is primarily technical in nature, there were
two questions about satisfaction, as well as a question regarding coverage versus frequency and
hours.This survey was administered in early December 2023.
3.A Community Survey—to be conducted in February 2024
4.Stakeholder interviews—to be conducted in January and February 2024
5. Outreach events to be conducted in February 2024 and in May 2024
Finance Department/External Audit—UPDATE
GRTC's Finance Department continues to make progress towards a successful fiscal year-end closeout. External
audit fieldwork was completed during the week of December 4, 2023. GRTC's finance staff is currently working
on any outstanding items requested in order to close the audit process in a timely manner. Financial statements
and any associated findings are expected to be issued in January 2024.
Greater Roanoke Transit Company
Transit Equity Day 2024
Transit Equity Day commemorates the legacy of civil rights leader Rosa Parks and acknowledges the pivotal role
of accessible public transportation in fostering equitable, inclusive communities. Every day, millions rely on
public transit as a lifeline, connecting them to work, education, healthcare,and social opportunities.Valley
Metro plans to celebrate Transit Equity Day on February 3, 2024, in partnership with BRRAG and Roanoke
Regional Commission.
GRTC Ridership Update
July I August lSeptemberlOctoberlNovemberlDecember January February March April May June
FY 2019-20
141,320 1.59,236 120,273 87,972 82,419 102,825
FY 2020-21 90,458 88,555 89,867 99,908 83,596 89,238 82,833 74,879 87,513 87,133 81,33 84,E FY 2021 22 90,431 87,879 88,971 91,032' 88,832 91,133 77,052+ 83,,3 7 97,253
FY 2022 23 ' 91,094 1,0,,5,68 955 99417 � u �� �� 8 9
FY 2023 { " ' y
+79� iv
>� 2,
vR'^� � Li�.�� .� �� � / � T��� Cam°' 1 I %}.
Respectfu ly ' bmitted,
.0
Kevi /. Price
General Manager
Copy: Vice President of Operations
Assistant Vice President of Operations
Treasurer
Secretary
GRTC General Counsel
Municipal Auditor
Greater Roanoke Transit Company
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Greater Roanoke Transit Company
Board of Directors Meeting
January 16, 2024
Honorable Joseph L. Cobb, President, and Members and Officers of the Board of Directors
Greater Roanoke Transit Company Roanoke, Virginia
Subject: Authorization—Fare Free Transit Equity Day Service—February 5, 2024
Background
Transit Equity Day commemorates the legacy of civil rights leader Rosa Parks and acknowledges the
pivotal role of accessible public transportation in fostering equitable, inclusive communities. Every day,
millions rely on public transit as a lifeline, connecting them to work, education, healthcare, and social
opportunities.
The provision of Fare Free Transit Equity Day Service celebrates the legacy of Rosa Parks and
acknowledges the importance of accessibility, affordability, environmental justice, and community
engagement as it relates to public transportation.
Recommendation
Authorize the provision of Fare Free Transit Equity Day Service on Monday, February 5, 2024.
Respectfu ly bmitted,
rice
Gen al Manager
Cc: Vice President of Operations
Assistant Vice President of Operations
Treasurer
Secretary
General Counsel
Municipal Auditor
Greater Roanoke Transit Company
it
BOARD OF DIRECTORS OF GREATER ROANOKE TRANSIT COMPANY
A RESOLUTION approving and adopting Fare Free Transit Equity Day Service for
Monday, February 5, 2024, for the Greater Roanoke Transit Company (GRTC) DBA Valley
Metro; and authorizing the General Manager of GRTC to take appropriate action to implement
such Fare Free Transit Equity Day Service for Monday, February 5, 2024.
BE IT RESOLVED by the Board of Directors of the Greater Roanoke Transit Company
as follows:
1. The Board of Directors hereby approves and adopts Fare Free Transit Equity Day
Service for Monday, February 5, 2024.
2. The above passenger Fare Free Transit Equity Day Service shall be effective on
Monday, February 5, 2024.
3. The General Manager of GRTC is hereby authorized to take appropriate action to
implement and administer the Fare Free Transit Equity Day Service for Monday, February 5,
2024, set forth above, subject to any needed approval by the Council of the City of Roanoke.
ATTEST:
a." -1714'6451-T
Secretary.
Weill Ade
41.
January 16, 2024
Dear President Cobb and Members of the Board:
Subject: Authorization to File for Federal Transit Administration Operating and Capital Financial
Assistance,and Commonwealth of Virginia Operating and Capital Financial Assistance for Fiscal Year(FY)
2024-2025.
Background
Financial assistance has been provided to Greater Roanoke Transit Company(GRTC) by the Federal
Transit Administration (FTA) and the Commonwealth of Virginia Department of Rail and Public
Transportation (VDRPT) during previous fiscal years for certain operating and capital expenses.
Under FTA regulations,GRTC is eligible for federal operating funds, which cannot exceed 50%of its
proposed operating deficit. In FY 2024—2025, GRTC will apply for the maximum amount allowed in
federal operating and capital financial assistance.
The deadline for filing the applications for the above referenced assistance for FY 2024-2025 is
February 1, 2024.
Recommendation
Authorize the General Manager or Assistant General Manager to file applications requesting the
maximum operating and capital financial assistance from FTA and VDRPT for FY 2024-2025 and to
accept and exec to the necessary grant agreements in a form approved by General Counsel.
Respectf bmitted,
rice
Ge ral Manager
Cc: Vice President of Operations
Assistant Vice President of Operations
Treasurer
Secretary
GRTC General Counsel
Municipal Auditor
Greater Roanoke Transit Company
BOARD OF DIRECTORS OF THE GREATER ROANOKE TRANSIT COMPANY
A RESOLUTION authorizing the filing of applications with the Federal Transit
Administration ("FTA") and the Commonwealth of Virginia Department of Rail and Public
Transportation("DRPT"), for Fiscal Year 2024-2025.
WHEREAS, the Federal Transit Administrator has been delegated authority to award
Federal operating and capital financial assistance for the Fiscal Year 2024-2025;
WHEREAS, the grant or cooperative agreement for Federal financial assistance will
impose certain obligations upon Greater Roanoke Transit Company ("GRTC")and cannot exceed
50% of its proposed operating deficit; and
WHEREAS, for the Fiscal Year 2024-2025, GRTC will apply for the maximum amount
allowed in federal operating and capital financial assistance.
THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Roanoke
Transit Company as follows:
1. The Board of Directors of GRTC designates that GRTC's General Manager and/or
Assistant General Manager are each authorized to execute and file an application for Federal
operating and capital financial assistance on behalf of GRTC with FTA and DRPT for the Fiscal
Year 2024-2025 authorized by 49 U.S.C. Chapter 53, and/or authorized by any other Federal
statutes administered by the FTA, including, but not limited to, applicable section of 23 U.S.C.
Chapter 23. GRTC is the Designated Recipient as defined by 49 U.S.C. Sec.5302(3).
2. GRTC's General Manager and/or Assistant General Manager are each designated
and authorized to execute and file with its application(s) the annual certification and assurances
and other documents FTA and DRPT require before awarding a Federal assistance grant or
cooperative agreement.
3. GRTC's General Manager and/or Assistant General Manager are each designated
and authorized to execute grant and cooperative agreements with FTA and DRPT on behalf of
GRTC, in a form approved by General Counsel, all as more particularly set forth in the report of
the General Manager to this Board dated January 16, 2024. The Company's Secretary is also
authorized to attest any such document.
CERTIFICATE AUTHORIZING RESOLUTION
The undersigned duly qualified Secretary, acting on behalf of GRTC, certifies that
the foregoing is a true and correct copy of a resolution adopted at a legally convened meeting of
the Board of Directors of the Greater Roanoke Transit Company ("GRTC") held on January 16,
2024.
ATTEST:
Secretary. -
GREATER ROANOKE TRANSIT COMPANY
BOARD OF DIRECTORS
March 11, 2024
Joseph L. Cobb, President, and Members
of the Greater Roanoke Transit Company
Board of Directors
Dear President Cobb and Members of the Board:
The regular meeting of the Greater Roanoke Transit Company Board of Directors will be
held on Monday, March 18, 2024 at 12:30 p.m., in the EOC Conference Room, Room
159, first floor, Noel C. Taylor Municipal Building, 215 Church Avenue, S. W., Roanoke,
Virginia.
Sincerely,
Cecelia F. McCoy v
Secretary
pc: Robert S. Cowell, Jr., Vice-President of Operations, GRTC
Angela O'Brien, Assistant Vice-President of Operations, GRTC
Timothy Spencer, General Counsel, GRTC
Laura M. Carini, Assistant General Counsel, GRTC
Amelia C. Merchant, Treasurer, GRTC
Troy A. Harmon, Municipal Auditor
Kevin Price, General Manager, Valley Metro
Ron Parker, Assistant General Manager, Valley Metro
GREATER ROANOKE TRANSIT COMPANY
BOARD OF DIRECTORS
Monday, March 18, 2024
12:30 P.M.
EOC CONFERENCE ROOM
ROOM 159
ACTION AGENDA
1. Call to Order— Roll Call - Director Andrew Keen was absent.
2. Approval of Minutes: Regular meeting of GRTC held on Tuesday, January 16, 2024.
Without objection,the reading of the Minutes were dispensed with and approved.
3. A communication from the General Counsel, pursuant to Section 2.2-3711.A.8, Code
of Virginia (1950), as amended, requesting that the Board of Directors of GRTC
convene a closed meeting for consultation with legal counsel, regarding specific legal
matters requiring the provision of legal advice by such counsel where such consultation
in open meeting would adversely affect the negotiating posture of the Board.
The Board concurred in the request of the General Counsel. (6-0)
4. Reports of Officers:
a. General Manager:
Management Update:
1. Micro-Transit Project Update
2. TPAC Meeting Update
3. GRTC Ridership Update
Without objection, the Management Update was received and filed.
5. External Audit Presentation — Brown & Edwards
Without objection, the External Audit Presentation was received and filed.
6. Transit Strategic Plan Presentation — KFH — Lib Rood
Without objection,the Transit Strategic Plan Presentation was received and filed.
7. Appointment of two members of the Board and two officers of the Company to serve as
the FY 2024-2025 Budget Review Committee to review the proposed budget.
8. Other Business.
9. Next Meeting: Monday, May 20, 2024 at 12:30 p.m., in the EOC Conference Room.
10. Recess for Closed Meeting. At 1:39 p.m., the President declared the Board
meeting in recess for a closed meeting.
11. At 1:57 p.m., the Board meeting reconvened in the EOC Conference
Room, President Cobb presiding, and all members of the Board in attendance,
with the exception of Board Director Keen, who was absent.
CERTIFICATION OF CLOSED MEETING: With respect to the closed meeting just
concluded, Board Director Michalski-Karney moved that each Member of the Board
of Greater Roanoke Transit Company (GRTC) certify to the best of his or her
knowledge that: (1) only public business matters lawfully exempted from open
meeting requirements under the Chapter 37 of Title 2.2, Code of Virginia, Virginia
Freedom of Information Act; and (2) only such public business matters as were
identified in any motion by which any closed meeting was convened were heard,
discussed or considered in the meeting by the public body. The motion seconded
by Director D'Ardenne and adopted by the following vote:
AYES: Directors Crookshank, D'Ardenne, Dillon, Michalski-Karney, Sanchez-
Jones and President Cobb-6.
NAYS: None-O.
(Director Keen was absent.)
12. Adjournment: 1:59 p.m.
dencmitb CITY OF ROANOKE
OFFICE OF THE CITY ATTORNEY
, i 464 MUNICIPAL BUILDING
215 CHURCH AVENUE, SW David L. Collins
rIzaiiitos ROANOKE,VIRGINIA 24011-1595 Laura M. Carini
Jennifer L. Crook
Timothy R. Spencer TELEPHONE 540-853-2431 Lalita Brim-Poindexter
City Attorney FAX 540-853-1221 Kimberly P. Beamer
EMAIL: cityatty@roanokeva.gov Assistant City Attorneys
March 18, 2024
The Honorable President and Members
of the Board of Directors for GRTC
Roanoke, Virginia
Re: Request for closed meeting
Dear President Cobb and Members of the Board of Directors:
This is to request, pursuant to Section 2.2-3711.A.8, Code of Virginia (1950), as
amended, that the Board of Directors of GRTC convene a closed meeting for consultation
with legal counsel, regarding specific legal matters requiring the provision of legal advice
by such counsel where such consultation in open meeting would adversely affect the
negotiating posture of the Board.
With kindest personal regards, I am
Sincerely yours,
• othy R. Spencer
General Counsel
TRS/lmc
c: Kevin L. Price, General Manager, GRTC
Robert S. Cowell, Jr., Vice President of Operations, GRTC
Angie O'Brien, Assistant Vice President of Operations, GRTC
Susie McCoy, Secretary
Well I a 401, 4440161
Greater Roanoke Transit Company(GRTC)
Board of Directors Meeting
Management Update
March 18, 2024
Planning and Special Projects
Micro-Transit Project Update
MetroFLX,Valley Metro's micro-transit extended service pilot project, launched on Monday January 22, 2024.
Over 900 MetroFLX passenger trips have been scheduled since the 1/22/24 launch date. A MetroFLX passenger
activity heat map was included in the GRTC Board Packet.The MetroFLX passenger activity heat map indicates
the top 15 origins and destinations since MetroFLX trip scheduling began on January 17, 2024.
4
TPAC Meeting Update
On February 8, 2024, TPAC held a virtual meeting via Zoom Meeting.Transit Strategic Plan (TSP), transfer center,
transit ridership updates, and MetroFLX were the primary topics discussed. Staff also responded to questions
from TPAC members. Minutes from the February 8, 2024 meeting is included in the GRTC Board Packet.
4 GRTC Ridership Update
July August September October November December January February March April May June
FY 2019-20 141,320 159,236 120,273 87,972 82,419 102,825
FY 2020-21 90,458 88,555 89,867 99,908 83,596 89,238 82,833 74,879 87,513 87,133 81,333 84,803
FY 2021-22 90,431 87,879 88,971 91,032 88,832 91,133 77,062 83,397 97,253 92,504 89,717 92,939
FY2022-23 91,094 101,568 95,504 99,417 98,182 90,038 105,279 102,521 112,093 100,569 110,798 109,839
FY 2023-24 100,048 114,450 104,700 110,313 110,039 107,170 102,010 112,672
NOTE: Fare free transit service was provided on February 5, 2024 in recognition of Transit Equity Day.Transit
ridership was 15% higher on 2/5/24 as compared to the first Monday in February 2023.
Respectfully Su,mitted,
evin /Price
Gene .I Manager
Copy: Vice President of Operations
Assistant Vice President of Operations
Greater Roanoke Transit Company
PD.Box 13247 Roanoke,Virginia 24032 Phone:(540)982-0305 Fax:(540)932-2703 www,valleymetro.com
Treasurer
Secretary
GRTC General Counsel
Municipal Auditor
Greater Roanoke Transit Company
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1108 Campbell Ave SE
Roanoke, VA 24013
P : 540-982-2222/ F : 540 982 2703
www.valleymetro.com
TPAC Meeting Notes from February 8,2024
February 8, 2024—6:30pm
Virtual Meeting
1. Welcome/Roll Call
TPAC Member Present
Chris Andrews
Steve Grammer X
Laura Hartman X
Monique Janelle
Cole Keister
Sean McGinnis X
Alison Stinnette X
Hope Trachtenberg-Fifer X
Vacant
GRTC
William Long X
Ron Parker X
Guests
Lib Rood X
2. Transit Strategic Plan
• Lib Rood of KFH Group updated the TPAC on progress on the TSP. Lib noted the
differences between the two surveys being complete. The first found 94% satisfaction
with Valley Metro services. The early findings show longer hours and higher frequency
as the top two requests. The community survey will run through February.
3. GRTC Updates
a. Transit Center Updates
• William Long said that the building at Third Street Station, on the corner of Salem Avenue
and 3`d Street, opened as the Customer Service Center. Riders can now buy passes and pick
up discount IDs.
b. Route Updates
• William Long introduced the new microtransit service, MetroFLX, noting hours and service
area.
• Hope Trachtenberg-Fifer asked about the need for spontaneous rides, particularly for
patients released from the hospital. William noted the possibility for on-demand rides,
based on availability. Ron Parker reviewed the ways to schedule a trip on MetroFLX
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1108 Campbell Ave SE
Roanoke,VA 24013
Ifigr41211114ey P : 540-982-2222/F : 540 982 2703
moreihroo www.valleymetro.com
and the address-to-address service,noting that RADAR is familiar with transportation
for medical trips. Hope pointed out the opportunity to deliver informational brochures
to hospitals, urgent care facilities, and social services offices.
• Sean McGinnis asked about the duration of the project. Ron answered that MetroFLX
is on a two-year pilot run and, if successful, will seek funds to continue the service.
• William reviewed the detours for the 61/62 Routes when the Wasena Bridge closes for
reconstruction in April. The TPAC will discuss the finalized detour route at the April
meeting. Laura Hartman forwarded information about a possible block party to celebrate the
bridge that may close the bridge starting April 13.
c. Follow-up Items
• William Long updated the committee on the three newest shelters and announced plans for
three more shelters in the southeast neighborhood of Roanoke. In response to a request at the
meeting in November 2023, William reviewed a breakdown of the shelter construction and
installation costs.
• Sean McGinnis asked if the shelter contracts go out to bid and if a partnership
with a technical school could reduce the fabrication costs. Ron Parker answered
that the contracts do go out to bid and that process is approved by the city. Ron
noted that partnership options can be explored.
• Hope Trachtenberg-Fifer asked about accessibility of stops without sidewalks,
particularly on Ogden Road, noting a concern about liability. William Long
pointed to right-of-way issues,the costs of sidewalk construction for major
projects, and the need for localities to prioritize their pedestrian-access needs.
William answered that shelters are good, but it seems that the concern is a snore
connected pedestrian network. Ron pointed to STAR as a possible option for
transit access to the mobility impaired riders.
• William reviewed the Transit Equity Day events, thanking BRRAG and Lib for coming
to Third Street Station to distribute snacks and surveys.
d. Ridership Updates
• William Long reviewed ridership updates. Generally, ridership has stabilized.
o William also compared the ridership on fare-free Transit Equity Day to past Mondays
and past daily averages. Ridership on February 5 was about 25%higher.
o Sean McGinnis noted that ridership on the Smart Way Express has exploded.
4. Questions/Comments
• Laura Hartman asked about the possibility of adding an additional Star Line Trolley sign at
the Salem/3`d Street stop for the sign to face riders walking from Third Street Station.
William Long answered that he would look into it.
• Hope Trachtenberg-Fifer asked Valley Metro to assess the stops at Roanoke Memorial
Hospital to differentiate between the city bus stop and the trolley stop, as well as stops along
Ogden Road. William said that he would complete site visits to these stops.
• Sean McGinnis asked about improving Wi-Fi on Smart Way buses. Ron Parker answered
that the maintenance team will look into it to see if replacement is possible.
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1108 Campbell Ave SE
a1�@y �>� 98 Roanoke, 24013
4/ P : 540-982-2222 I F : 540 2 2703
11101101111400 www.valleymetro.com
• Laura asked about progress on recycling bins at Third Street Station. Ron answered that a
team is looking into matching cans at Third Street Station and the Customer Service Center.
• Laura mentioned that Roanoke City Council has been asked to look into adding "no
smoking" signs at Third Street Station. Ron noted that the City of Roanoke owns the assets at
Third Street Station, which is different from the transit station in Lynchburg.
• Laura asked about additional TPAC members. Ron said that Valley Metro is still reviewing
applications, but work on shelters,the customer service center, and MetroFLX has taken a
front seat.
4. Next Meeting—April 11,2024
• William Long announced that the next meeting is April 11, 2024, and shared the 2024
TPAC meeting schedule.
5. Adjourn
Page 3
5,
Greater Roanoke Transit Company
(A Component Unit of the City of
Roanoke, Virginia)
Financial Report
BR(JWT :EDWARDS
certified public accountants
•
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke, Virginia)
Table of Contents
Page(s)
Financial Section
Independent Auditor's Report 1 —3
Basic Financial Statements:
Statements of Net Position 4
Statements of Revenues,Expenses, and Changes in Net Position 5
Statements of Cash Flows 6
Notes to Basic Financial Statements 7— 13
Compliance Section
Schedule of Expenditures of Federal Awards 14
Notes to Schedule of Expenditures of Federal Awards 15
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 16— 17
Independent Auditor's Report on Compliance for Each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance 18—21
Summary of Compliance Matters 22
Schedule of Findings and Questioned Costs 23-30
Summary Schedule of Prior Audit Findings 31-34
EDWARDS
Independent Auditor's Report
To the Honorable Members of the Board of Directors
Greater Roanoke Transit Company
Roanoke,Virginia
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying basic financial statements and the related notes to the financial
statements, as listed in the table of contents,of the Greater Roanoke Transit Company(the"Company"),
a component unit of the City of Roanoke,Virginia, as of and for the years ended June 30, 2023 and 2022.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Company, as of June 30, 2023 and 2022, and the respective cha nges in
financial position and cash flows thereof for the years then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our
report.We are required to be independent of the Company and to meet our other ethical responsibilities,
in accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Company's ability to
continue as a going concern for twelve months beyond the financial statement date, including any
currently know information that may raise substantial doubt shortly thereafter.
www.becpas.com
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate,they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining,on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's internal control. Accordingly, no such opi nion is
expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment,there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Company's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis be presented to supplement the basic financial statements. Such information,
2
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context.
Management has omitted the management's discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the basic financial statements, is req uired
by the Governmental Accounting Standards Board who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational,economic, or historical
context. Our opinion on the basic financial statements is not affected by this missing information.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Company's basic financial statements.The schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal
Regulations(CFR)Part 200, Uniform Administrative Requirements,Cost Principles,and Audit Requirements
for Federal Awards (Uniform Guidance), and is also not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements.The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America.In our opinion, the schedule of expenditures of federal
awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
February 23, 2024 on our consideration of the Company's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the Company's internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the Company's internal control over financial reporting and compliance.
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke,Virginia
February 23, 2024
3
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke, Virginia)
Statements of Net Position
June 30,2023 and 2022
Assets 2023 2022
Current assets:
Cash and cash equivalents $ 177,724 $ 389,954
Due from:
Federal Transit Administration 2,522,709 3,746,172
Commonwealth of Virginia 1,522,980 876,987
City of Roanoke 54,606 -
Accounts receivable 405,523 272,074
Supplies and materials (note 3) 744,524 565,079
Other assets 4,125 218,894
Total current assets 5,432,191 6,069,160
Capital assets (note 4):
Land 1,627,487 1,627,487
Buildings,structures and improvements 21,408,851 7,091,547
Buses 25,861,678 23,925,459
Shop and garage equipment 3,426,938 3,335,659
Office equipment and furnishings 688,641 611,141
Construction in progress 1,081,367 8,865,479
Accumulated depreciation (24,251,728) (22,267,609)
Capital assets,net 29,843,234 23,222,163
Total assets 35,275,425 29,291,323
Liabilities
Current liabilities:
Trade accounts payable 3,878,228 3,382,577
Accrued salaries and benefits 412,804 256,405
Unearned revenue - 458,646
Total current liabilities 4,291,032 4,097,628
Net Position
Net investment in capital assets 27,160,694 21,092,950
Unrestricted 3,823,699 4,100,745
Total net position $ 30,984,393 $ 25.193,695
See accompanying notes to the basic financial statements.
4
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke, Virginia)
Statements of Revenues,Expenses,and Changes in Net Position
Years ended June 30,2023 and 2022
2023 2022
Operating revenues:
Charges for passenger fares $ 1,183,167 $ 1,113,209
Operating expenses:
Salaries and wages 4,984,832 3,993,163
Fringe benefits 2,105,265 2,012,138
Services 905,668 872,089
Utilities 196,284 194,667
Insurance 279,709 258,191
Purchased services and other expenses 3,502,541 2,771,774
Materials and supplies 989,702 1,101,336
Depreciation 1,984,119 2,184,302
Total operating expenses 14,948,120 13,387,660
Operating loss (13,764,953) (12,274,451)
Nonoperating revenues:
Noncapital grants or assistance:
Federal Transit Administration 4,941,633 3,837,582
Commonwealth of Virginia 3,453,984 3,654,212
City of Roanoke,Virginia 1,804,736 2,016,824
City of Salem,Virginia 246,984 211,158
Town of Vinton, Virginia 84,988 84,956
New River Valley Metropolitan Planning Organization 94,795 94,705
Virginia Tech University 233,255 233,255
Carillon Foundation 62,339 -
Other local operating assistance 13,955 10,518
Total noncapital revenues 10,936,669 10,143,210
Local share and other revenues:
Advertising 144,854 179,942
Rental income 11,000 47,073
Parking income - 10,800
Interest income 2,605 1,204
Loss on disposal of asset - (317)
Other 103,127 15,339
Total local share and other revenues 261,586 254,041
Total nonoperating revenues 11,198,255 10,397,251
Loss before capital contributions (2,566,698) (1,877,200)
Capital contributions 8,357,396 7,604,863
Change in net position 5,790,698 5,727,663
Total net position at beginning of year 25,193,695 19,466,032
Total net position at end of the year $ 30,984,393 $ 25,193,695
See accompanying notes to the basic financial statements.
5
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke, Virginia)
Statements of Cash Flows
Years ended June 30,2023 and 2022
2023 2022
Cash flows from operating activities and local share
and other revenues(excluding interest):
Cash received from customers $ 1,049,718 $ 954,840
Cash payments to employees for services (6,933,698) (6,047,550)
Cash payments to suppliers for goods and services (5,896,256) (6,703,143)
Local share and other revenue received (199,665) 711,800
Net cash used in operating activities (11,979,901) (11,084,053)
Cash flows from noncapital financing activity:
Noncapital grants received 12,086,957 8,172,522
Cash flows from capital and related financing activities:
Acquisition of capital assets (8,051,863) (5,092,333)
Capital contributions 7,729,972 7,514,624
Net cash provided by(used in)capital and
related financing activities (321,891) 2,422,291
Cash flows from investing activity:
Interest income received 2,605 1,204
Net changes in cash and cash equivalents (212,230) (488,036)
Cash and cash equivalents at beginning of year 389,954 877,990
Cash and cash equivalents at end of year $ 177,724 $ 389,954
Reconciliation of operating loss to net cash used
in operating activities:
Operating loss $ (13,764,953) $ (12,274,451)
Adjustments to reconcile operating loss to net cash
used in operating activities:
Local share and other net revenue(excluding interest) 258,981 253,154
Depreciation 1,984,119 2,184,302
Changes in assets and liabilities:
Decrease(increase)in accounts receivable (133,449) (158,369)
Increase in supplies and materials (179,445) (52,377)
Decrease(increase)in other assets 214,768 (167,550)
Increase in trade accounts payable (57,675) (1,285,159)
Increase(decrease)in accrued salaries and benefits 156,399 (42,249)
Increase(decrease)in unearned revenue (458,646) 458,646
Net cash used in operating activities $ (11,979,901) $ (11,084,053)
Supplemental cash flow data
Noncash capital and financial activities
Capital asset purchases financed with accounts payable $ 2,682,540 $ 2,129,213
See accompanying notes to the basic financial statements.
6
i
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke, Virginia)
Notes to Basic Financial Statements
June 30,2023 and 2022
(1) Summary of Significant Accounting Policies
(a) Organization and Purpose
The Greater Roanoke Transit Company (the "Company") is a private, nonprofit, public service
organization wholly owned by the City of Roanoke, Virginia(the "City"). The Company provides a
comprehensive range of transportation services for the residents of the greater Roanoke area,including
bus service along fixed routes, special services for the disabled, and shuttle buses. Similar to other
public transportation systems, government subsidies are required to fund operations. The Company is
the recipient of operating and capital grants from federal, state, and local agencies, including the
Federal Transit Administration (the "FTA"), the Virginia Department of Rail and Public
Transportation(the"DRPT"),and the City.
Company policy decisions are made by the Board of Directors, which is comprised of two(2) City
Council members, two(2) City employees, and three(3) citizens of the community at large. The
Company contracts with First Group America Company (dba First Transit, Inc.) to provide senior
management professionals.The remainder of the staff are employees of Southwestern Virginia Transit
Management Company,Inc.("SVTMC"),a subsidiary of First Transit,Inc.Bargaining unit employees
of SVTMC, which include all bus drivers and mechanics,are under a separate contract ratified by the
Amalgamated Transit Union, A.F.L.-C.I.O.-C.L.C., Local Union 1493 ("Union") effective
July 1,2022 and expiring on June 30,2025.
The Company is reported as a discretely presented component unit with the City's reporting entity.
(b) Basis of Accounting
The accompanying financial statements reflect the transit operations of the Company and are
accounted for on the economic resources measurement focus and use the accrual basis of accounting,
which is in accordance with accounting principles generally accepted in the United States of America
("GAAP"), as promulgated by the Governmental Accounting Standards Board, and conform with the
requirements of the FTA's National Transit Database,as amended.Accordingly,revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred, regardless of when the
related cash flows take place. Nonexchange transactions, in which the Company receives value
without directly giving equal value in exchange, include appropriations from the City, grants, and
donations. Revenues from grants and contributions are recognized in the fiscal year in which all
eligibility requirements, including time requirements, if any are met.
(c) Cash and Cash Equivalents
The Company's cash and cash equivalents consist of cash on hand, demand deposits, and short-term
investments with original maturities three months of less from date of acquisition.
7 (Continued)
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke, Virginia)
Notes to Basic Financial Statements
June 30, 2023 and 2022
(d) Supplies and Materials
Supplies and materials consist of various consumable items which are maintained on a perpetual basis
with periodic verification based on physical count. Supplies and materials are valued using a weighted
average cost approach.
(e) Capital Assets
Capital assets are stated at cost less accumulated depreciation computed by the straight-line method
over the estimated lives of the respective assets as follows:
Buildings,structure, and improvements 2 to 40 years
Buses 2 to 12 years
Shop and garage equipment 2 to 10 years
Office equipment and furnishings 2 to 10 years
Contributed and donated capital assets are recorded at acquisition value at the date of receipt.The costs
of normal maintenance and repairs that do not add to the value of the asset or materially extend assets'
lives are not capitalized.
(,9 Accounts Receivable
Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company does
not record an allowance for existing accounts receivable based on historical experience. Account
balances are charged off after all means of collection have been exhausted and the potential for
recovery is considered remote.
(g) Compensated Absences f'
Company employees are granted vacation leave in varying amounts. In the event of termination, an
employee is paid for accumulated vacation in full. Accumulated vacation is recorded as an expense
and liability as the benefits accrue to employees. Sick leave is recorded as an expense as the employee
utilizes it.
In accordance with GAAP, the liability calculations include an accrual at the current rate of pay and
ancillary salary-related payments associated with its ultimate liquidation. Compensated absence
liabilities are reported as a component of accrued salaries and benefits.
8 (Continued)
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke,Virginia)
Notes to Basic Financial Statements
June 30,2023 and 2022
(h) Subscription-Based Information Technology Arrangements
In 2023, the financial statements include the adoption of GASB Statement No. 96, Subscription-
Based Information Technology Arrangements (SBITA).The primary objective of this statement is to
enhance the relevance and consistency of information about governments' subscription activities.
This statement establishes a single model for subscription accounting based on the principle that
subscriptions are financings of the right to use an underlying asset. Under this Statement, an
organization is required to recognize a subscription liability and an intangible right-to-use
subscription asset on the government-wide financial statements. The Company reviewed their
subscriptions and determined that its subscriptions that meet the guidelines of GASB No. 96 are not
material to the financial statements as a whole. The Company will evaluate each year.
(i) Operating Revenues and Expenses
Operating revenues consist of charges for passenger fares and are recorded as revenue at the time of
sale. Rental and parking income are recorded on the accrual basis of accounting based upon the date
in which services are provided to customers. Operating expenses include costs of services provided,
including personnel costs, purchased services, utilities, materials and supplies, insurance and
depreciation. All other revenues and expenses, with the exception of capital contributions, are
classified as nonoperating revenues and expenses.
(j) Unearned Revenues
Unearned revenues represent amounts for which asset recognition criteria have been met,but for which
revenue recognition criteria have not been met.Grants and contributions received before the eligibility
requirements are met have been recorded as unearned revenues.
(k) Deferred Compensation Plan
Company employees participate in the Southwestern Virginia Transit Management Company, Inc.
Retirement Plan (the "Plan"), which is a deferred compensation plan and trust covering all eligible
employees of the Company.Under the terms of the Plan agreement,all full-time employees are required
to participate in the Plan upon completion of their probationary employment period, which is 90 days
from date of hire for all employees. Southwest Virginia Transit Management Company, Inc. is the
Trustee of the Plan,which is administered by the Reliance Trust Company.Participants contribute to the
Plan through both mandatory and voluntary payroll deductions.Participants are required to contribute a
minimum of 3% of annual compensation. Participants may elect to defer up to 100% of their pretax
compensation not to exceed the Internal Revenue Service("IRS")limitations on net contributions. The
Company can make contributions at its discretion. The Plan qualifies as a government plan under
Section 457 of the Internal Revenue Code. This qualification exempts the Plan from the Employee
Retirement Income Security Act and the Department of Labor regulations.Charges to operations under
the Plan are based on 3%of union and salary participants' eligible payroll.
9 (Continued)
1
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke,Virginia)
Notes to Basic Financial Statements
June 30,2023 and 2022
(1) Net Position
Net position represents the difference between assets and liabilities.Net position may be comprised of
three components:
Net Investment in Capital Assets —Consists of the historical cost of capital assets net of any
accumulated depreciation.
Restricted — Consists of assets where limitations are imposed through external restrictions
imposed by creditors, grantors, or the laws and regulations of other governments.
Unrestricted—All other net position is reported as net invested in this category.
(m) Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets, liabilities,and net position at the
date of the financial statements and the reported amounts of revenues, expenses, and changes in net
position during the reporting period. Actual results could differ from these estimates.
(2) Cash and Cash Equivalents
All cash and cash equivalents are held by financial institutions in the name of the Company.At June 30,2023
and 2022,all cash and cash equivalents were fully collateralized pursuant to agreements with all participating
financial institutions to pledge assets on a pooled basis to secure public deposits according to the Virginia
Security for Public Deposits Act Regulations of the Code of Virginia.
(3) Supplies and Materials
As of June 30,2023 and 2022, supplies and materials consisted of the following:
2023 2022
Parts $ 711,239 $ 533,207
Diesel Fuel 32,155 20,261
Lubricating Oil 1,130 11,611
$ 744,524 $ 565,079
10 (Continued)
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke,Virginia)
Notes to Basic Financial Statements
June 30,2023 and 2022
(4) Capital Assets
Balances
Balances June 30,
June 30,2022 Increases Decreases 2023
Capital assets not being depreciated:
Land $ 1,627,487 $ - $ - $ 1,627,487
Construction in progress 8,865,479 7,007,980 (14,792,092) 1,081,367
Other capital assets being
depreciated:
Building,structures
and improvements 7,091,547 14,317,304 - 21,408,851
Buses 23,925,459 1,936,219 - 25,861,678
Shop and garage equipment 3,335,659 91,279 - 3,426,938
Office equipment
and furnishings 644,141 44,500 - 688,641
Accumulated depreciation (22,267,609) (1,984,119) - (24,251,728)
Net capital assets
being depreciated 12,729,197 14,405,183 - 27,134,380
Capital assets,net $23,222,163 $ 21,413,163 $ (14,792,092) $ 29,843,234
Balances Balances
June 30, June 30,
2021 Increases Decreases 2022
Capital assets not being depreciated:
Land $ 835,724 $ 791,763 $ - $ 1.627,487
Construction in progress 612,491 8,705,447 (452,459) 8,865,479
Other capital assets being
depreciated:
Building,structures
and improvements 11,808,656 32,493 (4,749,602) 7,091,547
Buses 23,659,251 266,208 - 23,925,459
Shop and garage equipment 3,202,066 138,213 (4,620) 3,335,659
Office equipment
and furnishings 1,120,464 24,728 (501,051) 644,141
Accumulated depreciation (24,546,502) (2,184,302) 4,463,195 (22,267,609)
Net capital assets being
depreciated 15,243,935 (1,722,660) (792,078) 12,729,197
Capital assets,net $ 16,692,150 $ 7,774,550 $ (1,244,537) $ 23,222,163
11 (Continued)
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke, Virginia)
Notes to Basic Financial Statements
June 30,2023 and 2022
(5) Deferred Compensation Plan
The Company has a deferred compensation plan(see note 1(k))covering all hourly and salaried employees.
The Company's contributions to the deferred compensation plan were $143,830 and $130,467 in 2023 and
2022,respectively.
(6) Contractual Commitments
Under the provisions of a management contract with First Group America Company(dba First Transit,Inc.),
which originally became effective on March 1, 2010 and was renewed July 1, 2020, the Company paid a
monthly fee of$27,331 and $29,095 for management services for years ended June 30, 2023 and 2022,
respectively. Total fees paid for the years ended June 30, 2023 and 2022, were $327,976 and $349,140,
respectively.
Certain assets acquired with FTA grants must be kept in service for a specified time period as a requirement
of the grants. If these assets are removed from service,the Company must reimburse FTA for up to 80%of
their fair market value on the date of disposition. Capital assets, net, approximated $29.8 million and
$23.2 million for the years ended June 30, 2023 and 2022, respectively, and are subject to these grant
requirements.
The Company has agreements with the City of Salem, Virginia and Town of Vinton, Virginia to provide bus
service to each locality,which may be terminated by either party upon written notice of twelve months and
six months, respectively. The localities reimburse the Company for 51% of the net operating costs based
upon passenger counts and service miles.
(7) Risk Management
The Company is exposed to various risks of loss such as theft of,damage to,and destruction of assets,injuries
to employees, and natural disasters. The Company carries commercial insurance for their risks. There have
been no significant reductions in insurance coverage from coverage in the prior year and settled claims have
not exceeded the amount of insurance coverage in any of the past three fiscal years.
The Company is involved in various legal proceedings from time to time in the normal course of business.
In management's opinion,the Company is not currently involved in any legal proceedings which individually
or in the aggregate could have a material effect on the financial condition, results of operations, and/or
liquidity of the Company.
(8) Subsequent Events
In preparing the financial statements, the Company has evaluated events and transactions for potential
recognition or disclosure through February 23,2024 report date.
12 (Continued)
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke,Virginia)
Notes to Basic Financial Statements
June 30,2023 and 2022
(9) New Accounting Pronouncements
In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to
enhance comparability in accounting and financial reporting and to improve the consistency of authoritative
literature by addressing(1)practice issues that have been identified during implementation and application
of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The
requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of
nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain
provisions in Statement 34,as amended,and terminology updates related to Statement 53 and Statement 63
are effective upon issuance. The requirements related to leases, PPPs, and SBITAs are effective for fiscal
years beginning after June 15,2022,and all reporting periods thereafter.The requirements related to financial
guarantees and the classification and reporting of derivative instruments within the scope of Statement 53
are effective for fiscal years beginning after June 15,2023, and all reporting periods thereafter.
In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections. This
Statement requires disclosure in notes to financial statements of descriptive information about accounting
changes and error corrections, such as their nature. In addition, information about the quantitative effects on
beginning balances of each accounting change and error correction should be disclosed by reporting unit in
a tabular format to reconcile beginning balances as previously reported to beginning balances as restated.
The requirements of this Statement are effective for accounting changes and error corrections made in fiscal
years beginning after June 15,2023, and all reporting periods thereafter. Earlier application is encouraged.
In June 2022, the GASB issued Statement No. 101, Compensated Absences. This statement updates the
recognition and measurement guidance for compensated absences and amends certain previously required
disclosures.The requirements of this Statement are effective for reporting periods beginning after December
15,2023.
Management has not determined the effects these new GASB Statements may have on prospective financial
statements.
13
f
THIS PAGE INTENTIONALLY BLANK
COMPLIANCE SECTION
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke, Virginia)
Schedule of Expenditures of Federal Awards
For the Year Ended June 30,2023
Federal Grantor/Pass-Through Grantor/ Assistance Listing
Program Title or Cluster Title Number Identifying Number Expenditures
Department of Transportation
Federal Transit Cluster
FY10 FTA Capital Assistance 20.500 VA-04-0046-00 $ 27,403
FY21 FTA Capital Assistance 20.507 VA-2021-037-01-00 1,224,659
FY23 FTA Operating Assistance 20.507 VA-2023-011-01-00 4,941,633
6,193,695
Bus and Bus Facilities Formula Program
FY18 FTA Capital Assistance 20.507 VA-2018-011-01-00 7,897
FY21 FTA Capital Assistance 20.507 VA-2021-012-02-00 7,692
15,589
Total Federal Transit Cluster 6,209,284
Formula Grants for Rural Areas
Virginia Department of Rail and Public Transportation
VA-2019-023
FY22 Operating Assistance 20.509 VA-2021-017 328,713
Total Department of Trans portation 6,537,997
Grand Total Fe de ral Financial Assistance $ 6,537,997
See accompanying notes to schedule of expenditures offederal awards.
14
GREATER ROANOKE TRANSIT COMPANY
(A Component Unit of the City of Roanoke,Virginia)
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30,2023
NOTE A—BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award
activity of the Greater Roanoke Transit Company(the"Company")under programs of the federal government for
the year ended June 30,2023.The information in the Schedule is presented in accordance with the requirements of
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards(the"Uniform Guidance"). Because the Schedule presents only a selected
portion of the operations of the Company,it is not intended to and does not present the financial position, changes
in net assets, or cash flows of the Company.
NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in Subpart E of the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement.
NOTE C—INDIRECT COST RATE
The Company has not elected to use the 10%de minimis indirect cost rate allowed under the Uniform Guidance.
NOTE D—OUTSTANDING LOAN BALANCES
At June 30, 2023,the Company had no outstanding loan balances requiring continuing disclosure.
15
BR( )W lEDWARDS
Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government
Auditing Standards
Board of Directors
Greater Roanoke Transit Company
Roanoke,Virginia
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States,the financial statements of the Greater Roanoke
Transit Company (the "Company") as of and for the year ended June 30, 2023, and the related notes to
the financial statements,which collectively comprise the Company's basic financial statements, and have
issued our report thereon dated February 23, 2024.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements,we considered the Company's internal
control over financial reporting (internal control) as a basis for designing the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Accordingly,we do not express an opinion on the effectiveness of the Company's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis.A material weakness is a deficiency,or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency,or a combination of deficiencies, in internal control that is less severe
than a material weakness,yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that have not been identified. We identified certain deficiencies in internal control, described in
the accompanying schedule of findings and questioned costs as Items 2023-001, 2023-002, 2023-003,
2023-005,and 2023-006 that we consider to be material weaknesses.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Company's financial statements are free of
material misstatement,we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
www.becpas.com
the financial statements. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests
disclosed an instance of noncompliance that is required to be reported under Government Auditing
Standards and which is described in the accompanying schedule of findings and questioned costs as
Item 2023-004.
Company's Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the Company's
response to the findings identified in our audit and described in the accompanying schedule of findings
and questioned costs. The Company's response was not subjected to the other auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Company's
internal control or on compliance.This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Company's internal control and compliance.
Accordingly,this communication is not suitable for any other purpose.
If
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke,Virginia
February 23, 2024
17
® EDWARDS
Independent Auditor's Report on Compliance for Each Major Program
and on Internal Control over Compliance Required by the Uniform
Guidance
Board of Directors
Greater Roanoke Transit Company
Roanoke,Virginia
Report on Compliance for Each Major Federal Program
Qualified Opinion
We have audited the Greater Roanoke Transit Company's(the "Company") compliance with the types of
compliance requirements described in the OMB Compliance Supplement that could have a direct and
material effect on each of the Company's major federal programs for the year ended June 30, 2023.The
Company's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs.
Qualified Opinion on Assistance Listing#20.500/20.507, Federal Transit Cluster
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion Section of our
report,the Company complied, in all material respects,with compliance requirements referred to above
that could have a direct and material effect on the Federal Transit Cluster for the year ended June 30,
2023.
Basis for Qualified Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America;the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the Company and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements related to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal documentation of the Company's compliance
with the compliance requirements referred to above.
www.becpas.com
Matter Giving Rise to Qualified Opinion on Assistance Listing # 20.500/20.507, Federal
Transit Cluster
As described in the accompanying schedule of findings and questioned costs,the Company did not comply
with the requirements regarding Assistance Listing#20.500/20.507, Federal Transit Cluster as described
in Item 2023-007 for Cash Management.
Compliance with such requirements is necessary, in our opinion, for the Company to comply with the
requirements applicable to that program.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation,and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the
Company's federal programs.
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the Company's compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with generally accepted auditing standards,Government Auditing Standards, and the Uniform
Guidance will always detect material noncompliance when it exists. The risk of not detecting material
noncompliance resulting from fraud is higher than for that resulting from error, a s fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements referred to above is considered material if there is a
substantial likelihood that, individually or in the aggregate, it would influence the judgement made by a
reasonable user of the report on compliance about the Company's compliance the requirements of each
major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance,we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risk of material noncompliance,whether due to fraud or error,and design
and perform audit procedures responsive to those risks. Such procedures include examining, on
a test basis, evidence regarding the Company's compliance with the compliance requirements
referred to above and performing such other procedures as we considered necessary in the
circumstances.
• Obtain an understanding of the Company's internal control over compliance relevant to the audit
in order to design audit procedures that are appropriate in the circumstances and to test and
19
report on internal control over compliance in accordance with the Uniform Guidance, but not for
the purpose of expressing an opinion on the effectiveness of the Company's internal control over
compliance Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance and therefore, material weaknesses or significant
deficiencies may exist that were not identified. However, as discussed below, we did identify a certain
deficiency in internal control over compliance that we consider to be a material weakness.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions,to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will
not be prevented,or detected and corrected, on a timely basis.A significant deficiency in internal control
over compliance is a deficiency,or a combination of deficiencies, in internal control over compliance with
a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance. We consider the deficiency in internal control over compliance described in the
accompanying schedule of findings and questioned costs as items 2023-007 material weaknesses.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance.Accordingly, no such opinion is expressed.
Government Auditing Standards requires the auditor to perform limited procedures on the Company's
response to the internal control over compliance findings identified in our audit is described in the
accompanying schedule of findings and questioned costs.The Company's response was not subjected to
the other auditing procedures applied in the audit of compliance and,accordingly,we express no opinion
the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly,this report is not suitable for any other purpose.
20
4te/it 1 24/-dfro4 Y(o/1,6
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke,Virginia
February 23, 2024
21
•
Greater Roanoke Transit Company
Summary of Compliance Matters
June 30, 2023
As more fully described in the Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government
Auditing Standards, we performed tests of the Company's compliance with certain provisions of the laws, regulations,
contracts, and grants shown below.
LOCAL COMPLIANCE MATTERS
Company By-Laws
COMMONWEALTH OF VIRGINIA COMPLIANCE MATTERS
Virginia Public Procurement Act—Prompt Payment Requirement
FEDERAL COMPLIANCE MATTERS
Compliance Supplement for Single Audits of State and Local Governments
Provisions and conditions of agreements related to federal programs selected for testing.
22
Greater Roanoke Transit Company
Schedule of Findings and Questioned Costs
June 30,2023
A. SUMMARY OF AUDITOR'S RESULTS
1. The auditor's report expresses an unmodified opinion on the financial statements.
2. Five material weaknesses and no significant deficiencies relating to the audit of the financial statements
were reported in the Independent Auditor's Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with
Government Auditing Standards.
3. One instance of noncompliance material to the financial statements was disclosed.
4. One material weakness and no significant deficiencies relating to the audit of the major federal award
program was reported in the Independent Auditor's Report on Compliance for Each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance.
5. The auditor's report on compliance for the major federal award program expresses a qualified opinion.
6. The audit disclosed one finding relating to the major program.
7. The programs tested as major were:
Assistance
Listing
Name of Program Number
Federal Transit Administration Grant Cluster:
Capital Investment Grants 20.500
Federal Transit Formula Grants-Operating and Capital
Assistance 20.507
8. The threshold for distinguishing Type A and B programs was$750,000.
9. The Company was not determined to be a low-risk auditee.
23
Greater Roanoke Transit Company
Schedule of Findings and Questioned Costs
June 30,2023
B. FINDINGS—FINANCIAL STATEMENT AUDIT
2023-001: Segregation of Duties and Management Oversight(Material Weakness)
Condition:
Due to staff turnover, duties handled by the Director of Finance included incompatible duties during
the year under audit such as: collection of cash, post receipts to general ledger, and prepare bank
deposit slips.
Criteria:
A fundamental concept of internal controls is the separation of duties. No one employee should have
access to both physical assets and the related accounting records, or to all phases of a transaction. In
addition, all significant transactions and controls should involve reconciliations and supervisory, or
management level, reviews of those processes. An effective and timely review process is intended to
prevent and detect both fraud and errors.
Cause:
Turnover in key positions can result in individuals performing duties that are not appropriately
segregated. In addition,turnover can also create challenges in the oversight or review function.
Effect:
Internal controls are designed to safeguard assets and detect losses from employees dishonesty or
error.
Recommendation:
Steps should be taken to eliminate conflicting duties and implement compensating controls, where
possible.
View of Responsible Officials:
In June 2023,The Director of Finance removed the aforementioned duties from the position.The two
Accounting Associates and the Money Room Shift Leader process bus station and accounts receivable
receipts. Cash fares are counted twice weekly by a minimum of three staff members, not including
the Director of Finance. With minimal exceptions, all monies received are kept in a locked safe and
transported to the bank by an armored cash handling company. The Director of Finance and the
Accounting Supervisor do not process deposits or collect cash, nor do they post the entries to the
general ledger.
24
Greater Roanoke Transit Company
Schedule of Findings and Questioned Costs
June 30,2023
2023-002: Grant Management and Operating Assistance (Material Weakness)
Condition:
During 2023,various functions related to financial management were not performed timely resulting
in difficulties and delays in completion of the annual audit.
Criteria:
Internal controls related to financial management should be designed to ensure timely reconciliations
are performed, including submission of reimbursement requests and reconciling grant and local
revenue. Timely and effective reconciliations ensure the financials provided for the annual audit are
provided based on the agreed upon schedule with the auditors which allows timely inclusion in the
City's financial report as well as to meet federal reporting deadlines. In addition,these reconciliations
will ensure that financials do not require adjustments.
Cause:
Turnover in financial positions and increased levels of federal and state grants caused significant
delays in performance of and reduction in effectiveness of certain financial duties.
Effect:
Current and prior period audit adjustments were required to prepare the financials in accordance with
Generally Accepted Accounting Principles. In addition,there were significant delays in completion of
the annual audit.
Recommendation:
We recommend that the Company establish financial management procedures to ensure that timely
reconciliations and submissions of reimbursement requests.We would recommend these procedures
be performed monthly and include tracking and reconciling grant activity by type (federal, state, and
local).
View of Responsible Officials:
The Director of Finance and Accounting Supervisor are currently in the process of reviewing operating
procedures and have created a monthly close checklist to create consistency in the timing and manner
of recording financial activities. Beginning in FY2024, staff will be assigned specific monthly closing
duties and monthly activity should be fully recorded by the 20th of the subsequent month. Members
of the Accounting Team have been receiving financial system training on various topics from the
system vendor and management is researching additional outside training opportunities. For this to
happen, we must hire additional staff in order to get caught up and remain so.
25
Greater Roanoke Transit Company
Schedule of Findings and Questioned Costs
June 30,2023
2023-003: Bank Reconciliations(Material Weakness)
Condition:
Monthly bank reconciliations were not prepared by an accountant and reviewed and approved by a
supervisor in a timely manner.
Criteria:
Monthly bank reconciliations should be performed by the 15th of the next month.
Cause:
Staff shortage and lack of cash flow management.
Effect:
Poor cash flow management resulting in vendor and contractor invoices not being paid timely.
Recommendation:
We recommend bank reconciliations be prepared by an accountant and reviewed by a supervisor to
ensure unreconciled or unusual items, or other matters noted in the reconciliation, are detected and
addressed in a timely manner.
View of Responsible Officials:
The Company is in agreement and is working towards completing the newly established monthly close
checklist each month by the end of FY2024.Specific Team members have been assigned responsibility
for reconciling individual bank activity. Staff will receive the required system training and delinquent
reconciliations will be completed by June 30, 2024. A new monthly closing checklist has been
developed and includes preparation and review oof these reconciliations. Beginning in FY2024, all
monthly closing items should be completed by the 20th of the subsequent month. This is our plan
moving forward, but being caught up must come first.
2023-004: Virginia Public Procurement Act Prompt Payment Requirement
Condition:
The Company did not pay a certain contractor for the construction of the bus transfer station on a
timely basis.
26
Greater Roanoke Transit Company
Schedule of Findings and Questioned Costs
June 30,2023
Criteria:
Section 2.2-4352 of the Code of Virginia requires that every agency of local government that acquires
goods or services shall promptly pay for the completed delivered goods or services by the required
payment date. The required payment date shall be either(i)the date on which payment is due under
the terms of the contract for the provision of the goods or services or (ii) if a date is not established
by contract, not more than forty-five days after goods or services are received or the invoice is
rendered.
Cause:
Due to a lack of cash flow and grant management, insufficient funds were available to pay a certain
contractor in a timely manner.
Effect:
The contractor was not paid timely as required by the Code of Virginia.
Recommendation:
All vendors are to be paid in a timely manner as defined by the Code of Virginia.
View of Responsible Officials:
Due to technical issues, staff were unable to submit grant draw requests to the Federal Transit
Authority through their Electronic Clearing House Operation [ECHO]system,significantly affecting the
Company's cash flow. This system access issue was resolved during FY2023 and grant drawdowns
started back in March of 2023. Additionally, detailed spreadsheets tracking grant activity have been
developed, which will allow staff members to better monitor reimbursement requests and ensure
vendors are paid timely moving forward.
2023-005: Parts Inventory(Material Weakness)
Condition:
There were several instances where the quantity and value of items did not agree between the
supplied inventory listing and the physical inventory counted during the inventory observation.
Criteria:
The inventory management system and the general ledger should be reconciled on a periodic basis
and annual inventory counts should be performed.
Cause:
Significant staff turnover during the year and a general staff shortage.
27
Greater Roanoke Transit Company
Schedule of Findings and Questioned Costs
June 30,2023
Effect:
Untimely reconciliations could result in discrepancies between the inventory management system
and the general ledger. In addition, inventory that has been used could be erroneously counted in the
inventory management system with the absence of an annual inventory count.
Recommendation:
We recommend that management perform annual inventory counts, reconcile inventory amounts
on a periodic basis between the inventory management system and the general ledger,and that
obsolete or otherwise outdated inventory items be disposed of.
View of Responsible Officials:
Management is in agreement and plans to perform monthly counts of parts to ensure all parts are
counted within the fiscal year. Spot counts will be performed each month and reconciled to the
inventory management system. Once input into the inventory management system, updated
inventory values will be provided to Finance so they can reconcile the general ledger to the inventory
system. In addition, management plans on disposing obsolete inventory items through public auction.
2023-006: Paid Time Off(Material Weakness)
Condition:
The Company did not reconcile third-party reports used to calculate year-end Paid Time Off (PTO)
accruals and expenses are not reconciled to internal Human Resources records used to track each
employee's earned PTO. In addition, these third-party reports were not retained by the Company's
staff for reference and the Company's PTO accrual and expense were only recorded once at year-end.
Criteria:
Third-party reports should be reconciled to internal records,third-party reports used to calculate PTO
accruals and expenses should be retained for reference, and PTO expense and accruals should be
periodically recorded and recognized.
Cause:
Significant staff turnover during the year and a general staff shortage.
Effect:
Not reconciling third-party PTO reports to internal Human Resources records could lead to PTO
inconsistencies between internal and external records — leading to employees having two different
amounts of available PTO during the year,depending on which system they are using.This could also
lead to a discrepancy between the amount of PTO accrued at year-end and the actual amount of PTO
the Company is actually obligated to pay out.
28
Greater Roanoke Transit Company
Schedule of Findings and Questioned Costs
June 30, 2023
Recommendation:
We recommend that management perform periodic reconciliations between the third-party PTO
reports and the internal Human Resources records to ensure that the third-party reports are accurate
and complete. If there are discrepancies,the Company can resolve them quickly.We also recommend
that the client retain each third-party report for reference and for inspection.
View of Responsible Officials:
Management is in agreement. Management is aware of the importance of inter-departmental
communication between Human Resources and Finance and is currently working to establish a
standard operating procedure regarding PTO accruals. The Company will seek to retain third-party
reports for easy inspection and periodically reconcile these reports to internal Human Resources
records moving forward.
C. FINDINGS AND QUESTIONED COSTS—MAJOR FEDERAL AWARD PROGRAM AUDIT
2023-007: Federal Transit Cluster—AL#20.507,Cash Management—Material
Noncompliance/Material Weakness in Controls over Compliance
Condition:
A lack of cash flow and grant management oversight resulted in contractors and vendors not being
paid timely for the construction of the bus transfer station and construction of bus shelters.
Criteria:
All grant activities should include management level oversight to ensure timeliness, accuracy, and
compliance with specified grant requirements.
Cause:
Lack of proactive cash flow and grant management occurred when invoices were received.
Effect:
Contractors were not paid for over 30 days after receipt of invoice. One vendor was not paid for over
90 days. Repeated delays in payments could result in work stoppage and project delays.
Recommendation:
A designated management level individual should have oversight to require timely drawdowns of
capital grants and timely payment of invoices.
View of Responsible Officials:
Due to technical issues, staff were unable to submit grant draw requests to the Federal Transit
Authority through their Electronic Clearing House Operation [ECHO] system,significantly affecting the
Company's cash flow. This system access issue was resolved during FY2023 and grant drawdowns
29
started back in March of 2023. Additionally, detailed spreadsheets tracking grant activity have been
developed, which will allow staff members to better monitor reimbursement requests and ensure
vendors are paid timely moving forward.
30
Greater Roanoke Transit Company
Summary Schedule of Prior Audit Findings
June 30,2023
A. FINDINGS—FINANCIAL STATEMENT AUDIT
2022-001: Segregation of Duties and Management Oversight(Material Weakness)
Condition:
Due to staff turnover, duties handled by the Director of Finance included incompatible duties such as:
collection of cash, post receipts to general ledger, and prepare bank deposit slips
Criteria:
A fundamental concept of internal controls is the separation of duties. No one employee should have
access to both physical assets and the related accounting records, or to all phases of a transaction. In
addition, all significant transactions and controls should involve reconciliations and supervisory, or
management level, reviews of those processes. An effective and timely review process is intended to
prevent and detect both fraud and errors.
Cause:
Turnover in key positions can result in individuals performing duties that are not appropriately
segregated. In addition,turnover can also create challenges in the oversight or review function.
Effect:
Internal controls are designed to safeguard assets and detect losses from employees dishonesty or
error.
Recommendation:
Steps should be taken to eliminate conflicting duties and implement compensating controls, where
possible.
Current Status:
Still applicable.
2022-002: Grant Management and Operating Assistance(Material Weakness)
Condition:
During 2022,various functions related to financial management were not performed timely resulting
in difficulties and delays in completion of the annual audit, including need to prepare material audit
adjustments to both the current year financials and a restatement to prior year balances.
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Greater Roanoke Transit Company
Summary Schedule of Prior Audit Findings
June 30, 2023
Criteria:
Internal controls related to financial management should be designed to ensure timely reconciliations
are performed, including submission of reimbursement requests and reconciling grant and local
revenue. Timely and effective reconciliations ensure the financials provided for the annual audit are
provided based on the agreed upon schedule with the auditors which allows timely inclusion in the
City's financial report as well as to meet federal reporting deadlines. In addition,these reconciliations
will ensure that financials do not require adjustments by the auditors.
Cause:
Turnover in financial positions, increased levels of federal and state grants, and implementation of a
new financial software caused significant delays in performance of and reduction in effectiveness of
certain financial duties.
Effect:
Current and prior period audit adjustments were required to prepare the financials in accordance with
Generally Accepted Accounting Principles. In addition,there were significant delays in completion of
the annual audit.
Recommendation:
We recommend that the Company establish financial management procedures to ensure that timely
reconciliations and submissions of reimbursement requests.We would recommend these procedures
be performed monthly and include tracking and reconciling grant activity by type (federal, state, and
local).
Current Status:
Still applicable in regard to financial management functions not being performed timely. No material
audit adjustments were needed during the FY2023 audit.
2022-003: Bank Reconciliations(Material Weakness)
Condition:
Monthly bank reconciliations were not prepared by an accountant and reviewed and approved by a
supervisor in a timely manner.
Criteria:
Monthly bank reconciliations should be performed by the 15t'of the next month.
Cause:
Staff shortage and lack of cash flow management
32
Greater Roanoke Transit Company
Summary Schedule of Prior Audit Findings
June 30, 2023
Effect:
Poor cash flow management resulting in vendor and contractor invoices not being paid timely.
Recommendation:
We recommend bank reconciliations be prepared by an accountant and reviewed by a supervisor to
ensure unreconciled or unusual items, or other matters noted in the reconciliation, are detected and
addressed in a timely manner.
Current Status:
Still applicable. Similar instance noted in current year.
2022-004: Virginia Public Procurement Act Prompt Payment Requirement
Condition:
As discussed in later findings,the Company did not pay certain contractors for the construction of the
bus transfer station on a timely basis.
Criteria:
Section 2.2-4352 of the Code of Virginia requires that every agency of local government that acquires
goods or services shall promptly pay for the completed delivered goods or services by the required
payment date.The required payment date shall be either(i)the date on which payment is due under
the terms of the contract for the provision of the goods or services or (ii) if a date is not established
by contract, not more than forty-five days after goods or services are received or the invoice is
rendered.
Cause:
Due to a lack of cash flow and grant management, insufficient funds were available to pay contractors
timely.
Effect:
A contractor upon delay of receipt of payment within a reasonable timeframe contacted the City of
Roanoke requesting payment.
Current Status:
Still applicable. Similar instance noted in current year.
33
Greater Roanoke Transit Company
Summary Schedule of Prior Audit Findings
June 30,2023
B. FINDINGS AND QUESTIONED COSTS—MAJOR FEDERAL AWARD PROGRAM AUDIT
2022-005: Federal Transit Cluster—AL#20.507,Cash Management—Material Noncompliance/Material
Weakness in Controls over Compliance
Condition:
A lack of cash flow and grant management oversight resulted in contractors not being paid timely for
the construction of the bus transfer station.
Criteria:
All grant activities should include management level oversight to ensure timeliness, accuracy, and
compliance with specified grant requirements.
Cause:
Lack of proactive cash flow and grant management occurred when invoices received.
Effect:
Contractors were not paid for over 30 days after receipt of invoice.Repeated delays in payments could
result in work stoppage and project delays.
Recommendation:
A designated management level individual should have oversight to require timely drawdowns of
capital grants and timely payment of invoices.
Current Status:
Still applicable. Similar instance noted in current year.
34
Greater Roanoke Transit Company
Comments on Internal Control and Other
Suggestions for Your Consideration
BROWNEDWARDS
certified public accounta»i=
Greater Roanoke Transit Company
Contents
Independent Auditor's Report on Comments and Suggestions 1
Comments and Suggestions Resulting from the Current Year Audit 3
Prior Year Comments and Other Suggestions 4
Accounting and Other Matters 8
4 BROWNEDWARDS
certified public accountants
Independent Auditor's Report on Comments and Suggestions
Board of Directors
Greater Roanoke Transit Company
Roanoke,Virginia
In planning and performing our audit of the financial statements of the Greater Roanoke Transit Company
(the "Company") as of and for the year ended June 30, 2023, in accordance with auditing standards
generally accepted in the United States of America, we considered its internal control over financial
reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements and to comply with
any other applicable standards, such as Government Auditing Standards and the regulations set forth in
the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. Accordingly, we do not express an opinion on the effectiveness of the entity's
internal control.
Our consideration of internal control was for the limited purpose described in the first paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and, therefore, material weaknesses or significant deficiencies may exist that were not
identified. In addition, because of inherent limitations in internal control, including the possibility of
management override of controls,misstatements due to error or fraud may occur and not be detected by
such controls.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct,misstatements on a timely basis. A material weakness is a deficiency,or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented,or detected and corrected on a timely basis. A
significant deficiency is a deficiency,or a combination of deficiencies, in internal control that is less severe
than a material weakness,yet important enough to merit attention by those charged with governance.
Certain material weaknesses were identified during our procedures that are included in the Independent
Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards and the Independent Auditor's Report on Compliance for Each Major Program and on Internal
Control over Compliance Required by the Uniform Guidance which should be read in conjunction with
this report.
Additionally,during our audit,we have become aware of certain other matters that provide opportuni ties
for improving your financial reporting system and/or operating efficiency. Such comments and
suggestions regarding these matters, if any, are also included in the attached report, but are not
designated as a material weakness or significant deficiency. Since our audit is not designed to include a
detail review of all systems and procedures, these comments should not be considered as being all-
inclusive of areas where improvements might be achieved. We also have included information on
www.becpas.com
accounting and other matters that we believe is important enough to merit consideration by management
and those charged with governance. It is our hope that our suggestions will be taken in the constructive
light in which they are offered.
We have already discussed these comments and suggestions with management, and we will be pleased
to discuss them in further detail at your convenience,to perform any additional study of these matters,
or to assist you in implementing the recommendations.
The entity's responses to our recommendations are included in this report. The responses were not
subjected to the auditing procedures applied in the audit of the financial statements and,accordingly,we
express no opinion on them.
This communication is intended solely for the information and use of the Greater Roanoke Transit
Company,management, and the appropriate state and federal regulatory agencies and is not intended to
be, and should not be, used by anyone other than these specified parties.
giteri/iti 66/4‘14,
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,gr. /4!
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke,Virginia
February 23, 2024
2
Greater Roanoke Transit Company
Comments and Suggestions Resulting from the Current Year Audit
June 30,2023
Parts Inventory (Material Weakness)
During the current-year audit, we noted several instances where the quantity and value of items did not agree between
the supplied inventory listing and the physical inventory counted during the inventory observation.We recommend that
management perform annual inventory counts, reconcile inventory amounts on a periodic basis between the inventory
management system and the general ledger, and dispose of any obsolete or otherwise outdated inventory items.
Management's Response: Management is in agreement and plans to perform monthly counts of parts to ensure all parts
are counted within the fiscal year. Spot counts will be performed each month and reconciled to the inventory management
system. Once inputted into the inventory management system, updated inventory values will be provided to Finance so
they can reconcile the general ledger to the inventory system. In addition, management plans on disposing obsolete
inventory items through public auction.
Paid Time Off (Material Weakness)
During the current-year audit, we noted that third-party reports used to calculate year-end Paid Time Off(PTO) accruals
and expenses are not reconciled to internal Human Resources records used to track each employee's earned PTO. We
noted that these third-party reports were not retained by the Company's staff for reference. In addition, we noted that
PTO expense was recorded only once at year-end. We recommend that management perform periodic reconciliations
between the third-party PTO reports and the internal Human Resources records to ensure that the third-party reports are
accurate and complete. If there are discrepancies,the Company can resolve them quickly. We also recommend that the
client retain each third-party report for reference and for inspection.
Management's Response: Management is in agreement. Management is aware of the importance of inter-departmental
communication between Human Resources and Finance and is currently working to establish a standard operating
procedure regarding PTO accruals. The Company will seek to retain third-party reports and periodically reconcile these
reports to internal Human Resources records.
3
Greater Roanoke Transit Company
Prior Year Comments and Other Suggestions
June 30,2023
Segregation of Duties and Management Oversight (Material Weakness)
One of the more important aspects of any internal control structure is the segregation of duties. In an ideal system of
internal controls, no individual would perform more than one duty in connection with any transaction or series of
transactions. In particular, no one individual should have access to both physical assets and the related accounting
records. Such access may allow errors or irregularities to occur and either not be detected or concealed. Due to turnover
in the Accounting Supervisor position during the year, duties handled by the Director of Finance included incompatible
duties such as:
1. Director of Finance and Accounting Supervisor have the ability to collect cash, post receipts to general ledger, and
prepare bank deposit slips.
When walking through relevant controls over these functions, we also noted the following matters:
• During our review of the segregation of duties,we noted that the Director of Finance and the Accounting manager
both collect cash, post receipts to general ledger, and prepare bank deposit slips.
Current Status:Still applicable.
Management Response:In June 2023, The Director of Finance removed the aforementioned duties from the position. The
two Accounting Associates and the Money Room Shift Leader process bus station and accounts receivable receipts. Cash
fares are counted twice weekly by a minimum of three staff members, not including the Director of Finance. With minimal
exceptions, all monies received are kept in a locked safe and transported to the bank by an armored cash handling
company. The Director of Finance and the Accounting Supervisor do not process deposits or collect cash, nor do they post
the entries to the G/L.
Grant Management and Operating Assistance (Material Weakness)
During 2022, various functions related to financial management were not performed timely resulting in difficulties and
delays in completion of the annual audit, including the need to prepare material audit adjustments to both the current
year financials and a restatement to prior year balances. Internal controls related to financial management should be
designed to ensure timely reconciliations are performed, including submission of reimbursement requests and reconciling
grant and local revenue. Timely and effective reconciliations ensure the financials provided for the annual audit are
provided based on the agreed upon schedule with the auditors which allows timely inclusion in the City's financial report
as well as to meet federal reporting deadlines. In addition,these reconciliations will ensure that financials do not require
adjustments by the auditors. Turnover in financial positions, increased levels of federal and state grants, and
implementation of a new financial software caused significant delays in performance and reduction in effectiveness of
certain financial duties. We recommend that the Company establish financial management procedures to ensure that
timely reconciliations and submissions of reimbursement requests. We would recommend these procedures be
performed monthly and include tracking and reconciling grant activity by type (federal, state, and local).
Current Status:Still applicable.
Management Response: The Director of Finance and Accounting Supervisor are currently in the process of reviewing
operating procedures and have created a monthly close checklist to create consistency in the timing and manner of
recording financial activities. Beginning in FY2024, staff will be assigned specific monthly closing duties and monthly
activity should be fully recorded by the 20th of the subsequent month. Members of the Accounting Team have been
4
Greater Roanoke Transit Company
Prior Year Comments and Other Suggestions
June 30,2023
receiving financial system training on various topics from the system vendor and management is researching additional
outside training opportunities. For this to happen, the Company must hire additional staff in order to get caught up and
remain so.
Payroll Reconciliation
During our review of payroll expenses, we noted that federal quarterly 941 reports provided by the external payroll
processing company are not reconciled to the general ledger.We recommend reconciling payroll reports such as, but not
limited to, the 941 reports throughout the year to ensure that all payroll records are accurate and complete. We also
recommend a segregation of duties between the reconciliation preparer and the supervisor reviewing as well as
documenting who and when the reconciliation was performed.
Current Status:Still applicable.
Management Response: When GRTC switched the payroll processing over to ADP the decision was made to cease the
Payroll reconciliation of the 941's to the Trial Balance. We planned for this process to be started in FY2023. However, we
have been short-staffed and unable to do so. This is a top priority for FY2024.
Grant Management Training
Several prior period adjustments and delays in the audit were related to reconciling grants receivable and grant revenue
at year end. We recommend grant training for the new Director of Finance. More specifically, we recommend training
related to timely drawdowns, cash flow management, methods for tracking grants received and spent on a regular basis,
reconciling grant reports to the general ledger, proper treatment of funding received and tracked as unearned revenue,
and compliance with federal and state requirements.
Current Status: There were no current or prior period adjustments made in FY2023. We still recommend that staff obtain
training for grant management and operating assistance.
Management Response:Management agrees and plans to take steps to make sure proper training is received by the staff.
This is an ongoing process.
Board Approval of Financial Statements
In our review of board minutes, we noted that monthly or quarterly financial statements were not presented to the board
during the fiscal year. We recommend the finance department provide financial statements to the board ahead of the
meeting and formally present them during the meeting. Board review, discussion, and approval of financial statements
provides a necessary level of internal control and transparency.
Current Status:Still applicable
Management Response: Management is in agreement and is working towards that goal by the end of FY2024. This is an
ongoing process.
5
Greater Roanoke Transit Company
Prior Year Comments and Other Suggestions
June 30,2023
Receipt of Capital Assets
During our testing of capital assets additions, we noted that the receipt of capital assets was not documented and
compared to invoice before payment. We noted no evidence of a signed packing slip,or equivalent,to confirm satisfactory
receipt of asset. As a result, the date an asset was received and placed into service could not be established. We
recommend signing the packing slip or invoices as described above to confirm satisfactory receipt of capital assets and all
other goods.
Current Status:No longer applicable.
Timeliness of Bank Reconciliations (Material Weakness)
During our review of bank reconciliations, we noted that bank reconciliations were not prepared by an accountant and
reviewed and approved by a supervisor in a timely manner.We recommend that bank reconciliations be prepared by the
15th of the next month and be reviewed by a supervisor to ensure unreconciled or unusual items, or other matters noted
in the reconciliation, are detected and addressed in a timely manner.
Current Status:Still applicable
Management Response: Specific Accounting Team members have been assigned responsibility for reconciling individual
bank account activity. Staff will receive the required system training and delinquent reconciliations will be completed by
June 30, 2024. A new monthly close checklist has been developed, and includes preparation and review of these
reconciliations. Beginning in FY2024, all monthly close items should be completed by the 20th of the subsequent month.
This is our plan moving forward, but getting caught up must come first.
Inventory
During our review of inventory, we noted that the inventory manager has access to physical inventory and the inventory
tracking system.Access to the physical inventory and the inventory tracking system by a single individual creates risk that
include errors, unintentional losses, and misappropriation of assets. We recommend that the Company implement
4 compensating controls to provide reasonable assurance that the assets are physically accounted for, transactions are
properly recorded, and the inventory balances are correct. The inventory manager should not both have the ability to
delete or change transactions in the inventory system and access to the physical inventory.
Current Status:Still applicable.
Management Response: The implementation of our new financial software has incorporated the inventory in the system.
The parts inventory for tracked in a separate system (RTA). The conversion to new finance software requires electronic
approval via a specified workflow established in the system.All purchase orders and other items require successful passage
through an established approval workflow in the system prior to posting. The financial software will not permit the posting
of any entry without having successfully passed through the established approval workflow in the system. However, the
two systems do not and will not mirror each other until an adjustment is made within the financial software.
The Inventory Manager orders, receives, and "consumes"inventory in the system. Invoice processing is a function of the
finance department.
6
Greater Roanoke Transit Company
Prior Year Comments and Other Suggestions
June 30,2023
GRTC agrees that the ability to adjust inventory balances during inventory counts needs to remain with the finance
department and has begun corrective action.
Accrued Paid Time Off
During our audit of the client's accrued paid time off (PTO) balances for administrators and operators, we noted an
inconsistency between employee handbooks and operators' union contract. Neither the administrators' employee
handbook nor the operators' employee handbook included a clause on maximum hours allowed to carry forward to the
next year.The operators' union contract, however, includes a clause that states employees can carryforward a maximum
of 192 hours. We noted in our testing of PTO balances that one operator exceeded the bargain contract and several
administrators are carrying unusually high balances. We recommend updating the administrators' and operators'
handbooks to include a maximum carryforward clause. We also recommend enforcing a payout policy for any excess
balances each year.
Current Status:Still applicable.
Management Response: GRTC agrees with this finding.
7
Greater Roanoke Transit Company
Accounting and Other Matters
June 30,2023
New GASB Pronouncements
In this section,we would like to make you aware of certain confirmed and potential changes that are on the horizon that
may affect your financial reporting and audit.
The GASB issued Statement No. 99, Omnibus 2022 in April 2022. The objectives of this Statement are to enhance
comparability in accounting and financial reporting and to improve the consistency of authoritative literature by
addressing(1)practice issues that have been identified during implementation and application of certain GASB Statements
and (2) accounting and financial reporting for financial guarantees.The practice issues addressed by this Statement are as
follows:
• Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and
Financial Reporting for Derivative Instruments,that do not meet the definition of either an investment derivative
instrument or a hedging derivative instrument.
• Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate
benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges
the interest rate risk of taxable debt.
• Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP).
• Disclosures related to nonmonetary transactions.
• Pledges of future revenues when resources are not received by the pledging government.
• Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management's Discussion and
Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial
statements.
• Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows
of Resources, Deferred Inflows of Resources, and Net Position.
• Terminology used in Statement 53 to refer to resource flows statements.
The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of
nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in
Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon
issuance. The requirements related to financial guarantees and the classification and reporting of derivative
instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all
reporting periods thereafter.
The GASB issued Statement No. 100,Accounting Changes and Error Corrections in June 2022. The primary objective of
this Statement is to enhance accounting and financial reporting requirements for accounting changes and error
corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making
decisions or assessing accountability.
This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and
changes to or within the financial reporting entity and describes the transactions or other events that constitute those
changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in
accounting estimates that result from a change in measurement methodology, a new principle or methodology should be
justified on the basis that it is preferable to the principle or methodology used before the change.That preferability should
be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness,
consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial
statements.This Statement prescribes the accounting and financial reporting for(1) each type of accounting change and
8
Greater Roanoke Transit Company
Accounting and Other Matters
June 30,2023
(2) error corrections.This Statement requires that(a) changes in accounting principles and error corrections be reported
retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting
beginning balances of the current period,and(c)changes in accounting estimates be reported prospectively by recognizing
the change in the current period. The requirements of this Statement for changes in accounting principles apply to the
implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This
Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund
balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.
This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes
and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances
of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile
beginning balances as previously reported to beginning balances as restated.
Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error
correction should be presented in required supplementary information (RSI) and supplementary information (SI). For
periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be
restated for error corrections, if practicable, but not for changes in accounting principles.
The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years
beginning after June 15,2023, and all reporting periods thereafter. Earlier application is encouraged.
The GASB issued Statement No. 101, Compensated Absences in June 2022. The objective of this Statement is to better
meet the information needs of financial statement users by updating the recognition and measurement guidance for
compensated absences.That objective is achieved by aligning the recognition and measurement guidance under a unified
model and by amending certain previously required disclosures.This Statement requires that liabilities for compensated
absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or
settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is
attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used
for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered
when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from
the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise
paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government
should consider relevant factors such as employment policies related to compensated absences and historical information
about the use or payment of compensated absences. However, leave that is more likely than not to be settled through
conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.
This Statement requires that a liability for certain types of compensated absences—including parental leave, military
leave, and jury duty leave—not be recognized until the leave commences.This Statement also requires that a liability for
specific types of compensated absences not be recognized until the leave is used.
This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an
employee's pay rate as of the date of the financial statements.A liability for leave that has been used but not yet paid or
settled should be measured at the amount of the cash payment or noncash settlement to be made.Certain salary-related
payments that are directly and incrementally associated with payments for leave also should be included in the
measurement of the liabilities.
9
Greater Roanoke Transit Company
Accounting and Other Matters
June 30,2023
With respect to financial statements prepared using the current financial resources measurement focus, this Statement
requires that expenditures be recognized for the amount that normally would be liquidated with expendable available
financial resources.
The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting
periods thereafter. Earlier application is encouraged.
10
Greater Roanoke Transit Company
Accounting and Other Matters
June 30,2023
Current GASB Projects
GASB currently has a variety of projects in process. Some of these projects are discussed below.
Conceptual Framework—Recognition. The project's objective is to develop recognition criteria for whether information
should be reported in state and local governmental financial statements and when that information should be reported.
This project ultimately will lead to a Concepts Statement on recognition of elements of financial statements.This project
has been removed from the technical plan.
Financial Reporting Model. The objective of this project is to make improvements to the financial reporting model,
including Statement No.34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local
Governments, and other reporting model-related pronouncements (Statements No. 35, Basic Financial Statements—and
Management's Discussion and Analysis —for Public Colleges and Universities, No. 37, Basic Financial Statements — and
Management's Discussion and Analysis —for State and Local Governments: Omnibus, No. 41, Budgetary Comparison
Schedules—Perspective Differences, and No. 46, Net Assets Restricted by Enabling Legislation, and Interpretation No. 6,
Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements). The
objective of these improvements would be to enhance the effectiveness of the model in providing information that is
essential for decision-making and enhance the ability to assess a government's accounting and address certain application
issues, based upon the results of the pre-agenda research on the financial reporting model. This project is currently in
exposure draft re-deliberations period.
Revenue and Expense Recognition.The objective of this project is to develop a comprehensive application model for the
classification, recognition, and measurement of revenues and expenses. The purpose for developing a comprehensive
model is (1) to improve the information regarding revenues and expenses that users need to make decisions and assess
accountability, (2)to provide guidance regarding exchange and exchange-like transactions that have not been specifically
addressed,(3)to evaluate revenue and expense recognition in the context of the conceptual framework,and(4)to address
application issues identified in practice, based upon the results of the pre-agenda research on revenue for exchange and
exchange-like transactions.This project is currently in the preliminary views re-deliberations period.
Going Concern Uncertainties and Severe Financial Stress. The objective of this project is to address issues related to
disclosures regarding going concern uncertainties and severe financial stress.The project will consider(1) improvements
to existing guidance for going concern considerations to address diversity in practice and clarify the circumstances under
which disclosure is appropriate, (2) developing a definition of severe financial stress and criteria for identifying when
governments should disclose their exposure to severe financial stress, and (3) what information about a government's
exposure to severe financial stress is necessary to disclose.This project is currently in the initial deliberations period.
Infrastructure Assets. The objective of this project is to address issues related to accounting and financial reporting for
infrastructure assets. The project would evaluate standards-setting options related to reporting infrastructure assets to
make information (1) more comparable across governments and more consistent over time, (2) more useful for making
decisions and assessing government accountability, (3) more relevant to assessments of a government's economic
condition, and (4) better reflect the capacity of those assets to provide service and how that capacity may change over
time.This project is currently in the initial deliberations period.
11
• EDWARDS
Required Communication with Those Charged with Governance at
Audit Conclusion
Board of Directors
Greater Roanoke Transit Company
Roanoke,Virginia
We have audited the financial statements of the Greater Roanoke Transit Company, a component unit of
the City of Roanoke,Virginia, hereafter referred to as the "Company",for the year ended June 30, 2023.
Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as
well as certain information related to the planned scope and timing of our audit.We have communicated
such information in our letter to you on May 9, 2023. Professional standards also require that we
communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies.The significant
accounting policies used by Company are described in Note 1 to the financial statements.As described in
Note 1 to the financial statements, the Company adopted a new accounting standard in 2023: GASB
Statement No. 96, Subscription Based Information Technology Arrangements. We noted no transactions
entered into by the Company during the year for which there is a lack of authoritative guidance or
consensus. All significant transactions have been recognized in the financial statements in the proper
period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions
about future events. Certain accounting estimates are particularly sensitive because of their significance
to the financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the Company's financial
statements were:
• The useful lives of capital assets is based on management's knowledge and judgment, which is
based on history.
• The liability for accrued compensated absences is based on management's estimate of the
average wage of employees per employment type.
We evaluated the key factors and assumptions used to develop these estimates in determining that they
are reasonable in relation to the financial statements taken as a whole.
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•
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users.The most sensitive disclosures affecting the financial statements include those related
to:
• Capital assets and litigation
The financial statement disclosures are neutral,consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit; however,due to turnover during the year at the Company,we experienced significant delays.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. We did not propose any adjustments as a result of our audit procedures for management
to correct. Management has determined that the effects of the following unrecorded misstatements are
immaterial, both individually and in the aggregate,to the financial statements taken as a whole including
the following:
• $15,279 decrease in operating expenses with corresponding decrease in beginning balance of net
position for an uncorrected misstatement related to paid leave accrual balance last year.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report.We are pleased to report that no such disagreements arose during the
course of the audit.
Management Representations
We have requested certain representations from management that are included i n the management
representation letter dated February 23, 2024, a copy of which is attached.
Management Consultations with Other Independent Accountants
In some cases,management may decide to consult with other accountants about auditing and accounting
matters,similar to obtaining a"second opinion"on certain situations.If a consultation involves application
of an accounting principle to the Company's financial statements or a determination of the type of
auditor's opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts.To our
knowledge,there were no such consultations with other accountants.
2
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the Company's auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention. We will also communicate with management in a management letter.
Other Matters
We were engaged to report on the Schedule of Expenditures of Federal Awards,which accompanies the
financial statements but is not RSI. With respect to this supplementary information, we made certain
inquiries of management and evaluated the form,content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United
States of America,the method of preparing it has not changed from the prior period, and the information
is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
Restrictions on Use
This information is intended solely for the information and use of the Board of Directors and management
of the Company and is not intended to be, and should not be, used by anyone other than these specified
parties. 66,,l 0 P
+WA
aidi
CERTIFIED PUBLIC ACCOUNTANTS
Roanoke,Virginia
February 23, 2024
Attachment
3
WC.I Mel,
Ilfrelhir€10
February 23.2024
Brown,Edwards&Company,L.L.P.
Certified Public Accountants
3906 Electric Rd
Roanoke,VA 24018
This representation letter is provided in connection with your audit of the financial statements of Greater Roanoke Transit
Company,Inc.("the Company"or"GRTC"),a component unit of the City of Roanoke,Virginia,which comprise the statement
of net position as of June 30,2023,and the statements of revenues,expenses,and changes in net position and cash flows for
the year then ended,and the related notes to the financial statements,for the purpose of expressing opinions as to whether the
financial statements are presented fairly,in all material respects,in accordance with accounting principles generally accepted
in the United States of America(U.S.GAAP).
Certain representations in this letter are described as being limited to matters that are material. Items are considered material,
regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding
circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or
influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be
considered material as a result of qualitative factors.
We confirm,to the best of our knowledge and belief,as of February 23,2024,the following representations made to you during
your audit.
Financial Statements
1) We have fulfilled our responsibilities,as set out in the terms of the audit engagement letter dated May 9,2023, including
our responsibility for the preparation and fair presentation of the financial statements in accordance with U.S.GAAP and
for preparation of the supplementary information in accordance with the applicable criteria.
2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all properly
classified funds and other financial information of the primary government and all component units required by generally
accepted accounting principles to be included in the financial reporting entity.
3) We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or
error.
4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and
detect fraud.
5) Significant assumptions we used in making accounting estimates, including those measured at fair value,are reasonable.
6) Related party relationships and transactions, including revenues, expenditures/expenses, loans, transfers, leasing
arrangements,and guarantees,and amounts receivable from or payable to related parties have been appropriately accounted
for and disclosed in accordance with U.S.GAAP.
7) Adjustments or disclosures have been made for all events, including instances of noncompliance,subsequent to the date
of the financial statements that would require adjustment to or disclosure in the financial statements or in the schedule of
findings and questioned costs.
8) The effects of uncorrected misstatements are immaterial,both individually and in the aggregate,to the financial statements
as a whole for each opinion unit.
• There was a$15,279 decrease of operating expenses with a corresponding decrease in beginning net position for
an uncorrected misstatement related to paid leave accrual balance last year.
9) The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in
accordance with U.S.GAAP.
Greater Roanoke Transit Company
P.O.Box 13247 Roanoke,Virginia 24032 Phone:(540)982-0305 Fax (540)982-2703 www.valleymetro.com
Information Provided
12) We have provided you with:
a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the
financial statements,such as records,documentation,and other matters and all audit or relevant monitoring reports,if
any,received from funding sources.
b) Additional information that you have requested from us for the purpose of the audit.
c) Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.
d) Minutes of the meetings or summaries of actions of recent meetings for which minutes have not yet been prepared.
13) All material transactions have been recorded in the accounting records and are reflected in the financial statements and the
schedule of expenditures of federal awards.
14) We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated
as a result of fraud.
15) We have no knowledge of any fraud or suspected fraud that affects the entity and involves:
• Management,
• Employees who have significant roles in internal control,
• Service organizations used by the entity,or
• Others where the fraud could have a material effect on the financial statements.
16) We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial statements
communicated by employees,former employees,regulators,or others.
17) We have no knowledge of instances of noncompliance or suspected noncompliance with provisions of laws,regulations,
contracts,or grant agreements,or waste or abuse,whose effects should be considered when preparing financial statements.
18) We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be
considered when preparing the financial statements.
19) We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions
of which we are aware.
Government—specific
20) There have been no communications from regulatory agencies concerning noncompliance with,or deficiencies in,financial
reporting practices.
21) We have taken timely and appropriate steps to remedy fraud,noncompliance with provisions of laws,regulations,contracts,
and grant agreements,or abuse that you have reported to us or were discovered by the Federal Transit Authority.
22) We have a process to track the status of audit findings and recommendations.
23) We have identified to you any previous audits, attestation engagements,and other studies related to the audit objectives
and whether related recommendations have been implemented.
24) We have provided our views on reported findings, conclusions,and recommendations,as well as our planned corrective
actions,for the report.
25) The entity has no plans or intentions that may materially affect the carrying value or classification of assets, deferred
outflows of resources,liabilities,deferred inflows of resources,and fund balance or net position.
26) We are responsible for compliance with the laws,regulations,and provisions of contracts and grant agreements applicable
to us,including tax or debt limits and debt contracts;and legal and contractual provisions for reporting specific activities
in separate funds.
27) We have identified and disclosed to you all instances, which have occurred or are likely to have occurred, of fraud and
noncompliance with provisions of laws and regulations that we believe have a material effect on the financial statements
or other financial data significant to the audit objectives,and any other instances that warrant the attention of those charged
with governance.
a
28) We have identified and disclosed to you all instances,which have occurred or are likely to have occurred,of noncompliance
with provisions of contracts and grant agreements that we believe have a material effect on the determination of financial
statement amounts or other financial data significant to the audit objectives.
29) We have identified and disclosed to you all instances that have occurred or are likely to have occurred,of abuse that could
be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit
objectives.
30) There are no violations or possible violations of budget ordinances, laws and regulations (including those pertaining to
adopting, approving, and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any
related debt covenants whose effects should be considered for disclosure in the financial statements, or as a basis for
recording a loss contingency,or for reporting on noncompliance.
31) As part of your audit,you assisted with the preparation of the financial statements and related notes.We acknowledge our
responsibility as it relates to those nonaudit services, including that we assume all management responsibilities;oversee
the services by designating an individual,preferably within senior management,who possesses suitable skill,knowledge,
or experience; evaluate the adequacy and results of the services performed; accept responsibility for the results of the
services; and ensured that the entity's data and records are complete and received sufficient information to oversee the
services. We have reviewed, approved, and accepted responsibility for those financial statements and related notes and
schedule of expenditures of federal awards.
32) The entity has satisfactory title to all owned assets,and there are no liens or encumbrances on such assets nor has any asset
been pledged as collateral.
33) The entity has complied with all aspects of contractual agreements that would have a material effect on the financial
statements in the event of noncompliance.
34) Components of net position (net investment in capital assets; restricted; and unrestricted), and classifications of fund
balance (nonspendable, restricted, committed, assigned, and unassigned) are properly classified and, if applicable,
approved.
35) Investments,derivative instruments,and land and other real estate held by endowments are properly valued.
36) Provisions for uncollectible receivables have been properly identified and recorded.
37) Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities,and
allocations have been made on a reasonable basis.
38) Revenues are appropriately classified in the statement of activities within program revenues, general revenues,
contributions to term or permanent endowments,or contributions to permanent fund principal.
39) Special and extraordinary items are appropriately classified and reported,if applicable.
40) Deposits and investment securities and derivative instruments are properly classified as to risk and are properly disclosed.
41) Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if applicable,
depreciated or amortized.
42) Capital assets have been evaluated for impairment as a result of significant and unexpected decline in service utility.
43) We have not completed the process of evaluating the impact that will result from adopting new Governmental Accounting
Standards Board Statements(GASBS)that are not yet effective,as discussed in the notes to financial statements. The
entity is therefore unable to disclose the impact that adopting these Statements will have on its financial position and the
results of its operations when the Statements are adopted.
44) We have appropriately disclosed the entity's policy regarding whether to first apply restricted or unrestricted resources
when an expense is incurred for purposes for which both restricted and unrestricted net position is available and have
determined that net position is properly recognized under the policy.
45) With respect to the supplementary information on which an in-relation-to opinion is issued.
a) We acknowledge our responsibility for presenting the supplementary information in accordance with accounting
principles generally accepted in the United States of America, and we believe the supplementary information,
including its form and content, is fairly presented in accordance with accounting principles generally accepted in the
United States of America.The methods of measurement and presentation of the supplementary information have not
changed from those used in the prior period, and we have disclosed to you any significant assumptions or
interpretations underlying the measurement and presentation of the supplementary information.
b) If the supplementary information is not presented with the audited financial statements, we will make the audited
financial statements readily available to the intended users of the supplementary information no later than the date we
issue the supplementary information and the auditor's report thereon.
46) With respect to federal award programs:
a) We are responsible for understanding and complying with and have complied with the requirements of Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards(Uniform Guidance),including requirements relating to preparation of the schedule
of expenditures of federal awards.
b) We acknowledge our responsibility for preparing and presenting the schedule of expenditures of federal awards(SEFA)
and related disclosures in accordance with the requirements of the Uniform Guidance, and we believe the SEFA,
including its form and content, is fairly presented in accordance with the Uniform Guidance. The methods of
measurement or presentation of the SEFA have not changed from those used in the prior period and we have disclosed
to you any significant assumptions and interpretations underlying the measurement or presentation of the SEFA.
c) If the SEFA is not presented with the audited financial statements, we will make the audited financial statements
readily available to the intended users of the SEFA no later than the date we issue the SEFA and the auditor's report
thereon.
d) We have identified and disclosed to you all of our government programs and related activities subject to the Uniform
Guidance compliance audit,and have included in the SEFA expenditures made during the audit period for all awards
provided by federal agencies in the form of federal awards, federal cost-reimbursement contracts, loans, loan
guarantees,property(including donated surplus property),cooperative agreements,interest subsidies,insurance,food
commodities,direct appropriations,and other direct assistance.
e) We are responsible for understanding and complying with, and have complied with, the requirements of federal
statutes,regulations,and the terms and conditions of federal awards related to each of our federal programs and have
identified and disclosed to you the requirements of federal statutes,regulations,and the terms and conditions of federal
awards that are considered to have a direct and material effect on each major program.
1) We are responsible for establishing and maintaining,and have established and maintained,effective internal control
over compliance for federal programs that provides reasonable assurance that we are managing our federal awards in
compliance with federal statutes,regulations,and the terms and conditions of federal awards that could have a material
effect on our federal programs.We believe the internal control system is adequate and is functioning as intended.
g) We have made available to you all federal awards(including amendments,if any)and any other correspondence with
federal agencies or pass-through entities relevant to federal programs and related activities.
h) We have received no requests from a federal agency to audit one or more specific programs as a major program.
i) We have complied with the direct and material compliance requirements(except for noncompliance disclosed to you),
including when applicable,those set forth in the OMB Compliance Supplement,relating to federal awards and have
identified and disclosed to you all amounts questioned and all known noncompliance with the direct and material
compliance requirements of federal awards.
j) We have disclosed any communications from federal awarding agencies and pass-through entities concerning possible
noncompliance with the direct and material compliance requirements, including communications received from the
end of the period covered by the compliance audit to the date of the auditor's report.
k) We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation
engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit,
including findings received and corrective actions taken from the end of the period covered by the compliance audit
to the date of the auditor's report.
1) Amounts claimed or used for matching were determined in accordance with relevant guidelines in OMB's Uniform
Guidance(2 CFR part 200, subpart E)and OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments, if applicable.
m) We have disclosed to you our interpretation of compliance requirements that may have varying interpretations.
n) We have made available to you all documentation related to compliance with the direct and material compliance
requirements, including information related to federal program financial reports and claims for advances and
reimbursements.
o) We have disclosed to you the nature of any subsequent events that provide additional evidence about conditions that
existed at the end of the reporting period affecting noncompliance during the reporting period.
p) There are no such known instances of noncompliance with direct and material compliance requirements that occurred
subsequent to the period covered by the auditor's report.
q) No changes have been made in internal control over compliance or other factors that might significantly affect internal
control, including any corrective action we have taken regarding significant deficiencies or material weaknesses in
internal control over compliance,subsequent to the period covered by the auditor's report.
r) Federal program financial reports and claims for advances and reimbursements are supported by the books and records
from which the financial statements have been prepared.
s) The copies of federal program financial reports provided you are true copies of the reports submitted,or electronically
transmitted,to the respective federal agency or pass-through entity,as applicable.
t) We have charged costs to federal awards in accordance with applicable cost principles.
u) We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all
findings required to be included by the Uniform Guidance and we have provided you with all information on the status
of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all
management decisions.
v) We are responsible for and have ensured the reporting package does not contain protected personally identifiable
information.
w) We are responsible for and have accurately prepared the auditee section of the Data Collection Form as required by
the Uniform Guidance.
x) We are responsible for taking corrective action on each audit finding of the compliance audit and have developed a
corrective action plan that meets the requirements of the Uniform Guidance.
y) We have disclosed to you all contracts or other agreements with service organizations,and we have disclosed to you
all communications from the service organizations relating to noncompliance at the service organizations,if applicable.
47) We reaffirm the repre ntations made to you in our letter dated March 30,2023 regarding your audit for the fiscal year
ended June 3 , 2'
Signature: —
Title: Key' Pri General Maner
Signature: a'VkKi
Title: Bonnie White, Director of Finance ____
b.
Valley Metro
Transit Strategic Plan (TSP)
Update to the GRTC Board of Directors I March 18, 2024
vao11ey ' KFH
• GROUP •
wba RESEARCH
Study Update
• Origin-Destination Survey of Current Riders is complete
• Results presented today
• Community Survey is complete
• Results presented today
• Stakeholder Outreach is wrapping up
• Plan is under development
AWE
fr
Origin-Destination Survey
Surveyors on buses December 1 - 10, 2023
883 surveys completed ,
653 weekday
o rsp .
t=-
230 Saturday P
questions about current
Asked trip,
demographics and a few brief opinion
questions
3
Origin-Destination
Survey Results
Origin Type
Home — 48%
Work — 22%
Recreation/Social — 7%
Doctor, Medical, Hospital (non-work) — 5%
School/College (students only) — 3%
Religious/Community — 2%
All others 1% or less
4
Origin-Destination
Survey Results
Destination Type _ w
Home — 39% •
Work — 22%
Shopping/Restaurant — 16%
Recreation/Social — 9% 1
01
Doctor, Medical, Hospital (non-work) — 5%
School/College (students only) — 3% -----. _
Religious/Community — 3%
Errands/Personal Business — 2%
All others — less than 1%
is
Origin-Destination
Survey Results
Frequency of Use
Average — 4.5 days per week
How would you make the trip if Valley Metro not available?
Would not make the trip — 23%
Uber/Lyft/Taxi — 33%
Family/Friend — 19%
Drive — 4%
Bike/Scooter — 2%
6
Other - <1%
Weekday Origins Bernet[
=�'r' Springs
Trips - ❑ove Gale Brmsn wood:
Sparse Be
Dense Hollins Gardens
r tetour;S nr
City and County
Boundaries Heights 1 .n O.O
yen M� Nora l Lak „ La Bellevue Bon
Wo tl Ares GI Cy
Brsrsl� ke.oi
Fa
Q�au crossn e - '�-
Gardens
Estates �` �� i Lu
Giervar Rubi . "`°nod
C
West Salem GTerracell Par
ores[
CI roroak �""
A0 2 7 10
Blacksburg&Christiansburg y ,0,es
Weekday Mason Bennett
CcvP Springs
Destinations
British Woods
Cloverdale
Ti IiJS •# 3`j ¢ Be
i Rid Ilins Gardens
Sparse ?; � 6t f,e° s tecourt East
Barnette tread '
De''' HNghts hi n{arn'.
t ' City and County %� = v#rx,
4.�.,� Boundaries N rM Cakes
� � La Bellevu
rvooded Acres Glen Coe e " `
e tt!e
au" - .s- 'lam'
Moc ton "dap' ffilOss - Cu
Grandvi- 4111-
Gardens - Itt7
Estates a "t° _ lir
Qua,
Glenvar Rob1 ood `T „i nt,.ct
Green HIII Para £ ' ''
West Salem Terrace _$
„I's-'-'-' 4
Forest Val ' ^�
3e .�unc i. •�b �cvFg,3fi
i
9 "
„;:: ..:
Blacksburg&Christiansburg
Origin-Destination
Survey Results
Other Details
88% walked to bus stop; 92% walked from bus stop
52% used one transfer for their trip; 47% no transfers; 2% two or more
transfers
84% reported no access to car or motorcycle
58% reported no license
Average household income: $26.8k; Median: $19.4k
28% reported disability
89% own smartphones
53% paid cash fare; 20% used 31-day pass; 10% used 7-day pass; 6%
fare free; 4% student ID; 3% 15-trip pass; 73% full fare 9
I
Origin-Destination
Survey Results
How do you get updates or news about Valley Metro?
39% screens on the buses or station — "
36% Valley Metro website
Download �—
27% VMGO app VMCO
9% social media .l }'
7% Valley Metro phone line
5% television
3% word of mouth
2% newspaper
1% Google/Google maps and 1% "just know" 10
O-D Results - Opinions
Preferred Service Improvements
Longer hours of service for existing routes- 63%
More frequent service for existing routes — 31%
Service to additional areas — 7%
AINEI
O-D Results - Opinions
Overall, how satisfied are you with the service that Valley
Metro Provides? (Q16)
100%
90%
80% 33%
70%
60%
50"6
40%
30% 62%
20%
10%
0%
-2i I Weekday Saturday
(n=873) (n=646) (n=227) ,®
•Very satisfied •Somewhat satisfied •Neither satisfied nor dissatisfied Dissatisfied
O-D Results - Opinions
Overall, how satisfied are you with Third Street Station?
(Q17)
100% °
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Total Weekday Saturday
(n=871) (n=645) (n=226)
■Very satisfied IN Somewhat satisfied ■Neither satisfied nor dissatisfied Dissatisfied
Community Survey
Survey Administration =F_
In-person on Transit Equity Day (2/5/2024) — paper surveys }
Paper surveys at the Third Street Station
Electronic surveys via Survey Monkey — Open from 2/5 to 3/8
■ f
Received 224 surveys electronically; 50 on paper; 274 total ;
Community Survey Results
89% of respondents aware of Valley Metro Services
Impression of services:
Somewhat
Negative <`
9% Negative Positive
4% 28% is Positive
Neutral ■Somewhat Positive
27% Neutral
Somewhat
Positive isSomewhat Negative
32% Mk Negative
Community Survey Results
55% have used Valley Metro in the last six months
Public Transportation Modes
❑ Valley Metro Fixed Routes —46%
❑ Smart Way or Smart Way Express — 13.3%
LI Star Line Trolley — 29%
LI STAR — 5.9%
❑ MetroFLX — 4.3%
❑ Amtrak— 14.8%
❑ Uber/Lyft 30%
❑ 16
Taxis — 2%
Community Survey Results
•
I would use public transportation more often if:
Service was more frequent 61%
There were more stops with shelters/benches 45%
The bus operated on Sundays 44%
The bus trip took less time 33%
I had more information about how to use the bus 23%
The bus was more reliable 22%
It was cleaner 21%
4 It went to other locations 21%
The fare was lower 19%
There was better security on board the vehicles 15% AllE1
It was safer 14%�°
k
�+. �-s.>s,,. .._ter. ...«.. e:::._i .': -a-,*sw,w,�
Community unieY ��
_ __
I do not use public transportation because:
The bus does not go where l want to go 39%
I prefer to drive 37%
The wait is too long between buses 33%
It takes too long 29%
I don't know how to use the bus 16%
Other 16%
I prefer to walk 14%
The bus is too crowded 11%
The fare is too high 8%
I prefer to ride a bike 6%
Community Survey Results
Desired Service to additional
geographic
Improvements areas (please
specify)
23%
More frequent
service for existing
Valley Metro routes
46%
Longer hours of
service for existing
Valley Metro routes
31%
19
Community Survey Results
Additional Service Areas:
Roanoke County (general)
Hollins Area
Cave Spring ' ,.� ;
} i �.
9
Clearbrook 1 - u 4'
Salem, Roanoke College ,
Salem to Tanglewood 1804 -�-11,
616
SW Roanoke — Brambleton Route
Peters Creek Road
Electric Road
Franklin County
Roanoke Valley 20
Most Important Areas for Future Expansion
Bonsack
8%
The Hollins Area
29,
Brandon Avenue
Corridor
12%
one,
Electric Road Corridor
(State Route 419)
27%
Community Survey Results
❑ 97% have access to the Internet or a smart phone
❑ Responses received from:
❑ Roanoke — 179
❑ Salem — 15
❑ Vinton — 11
❑ Blacksburg — 3
❑ Christiansburg — 2
❑ Boones Mill — 2
❑ Other places - 6
Survey Comments
Compliment—I found Valley Metro far more reliable than bus service in Richmond and Lynchburg
Repeated requests from survey questions—longer hours, greater frequency, Sundays, Roanoke County service
Cave Spring to Kroger and Hamricks; Hollins; Bonsack; better service to Roanoke College,419, Daleville
Smart-style "tap" cards;Apple pay/mobile wallet, more ways to pay
Extend trolleys to Grandin Road Village area; Restructure 65/66; Better marked stops and ADA access;time to
build light rail or BRT
Free passes for youth
Electric buses
More frequent Smart Way buses during commute times
Frequency is freedom
More hubs
Fare free
Various specific complaints/observations
4
0
Comments from Transit Equity Day
Return to peak service — 30 minutes
Greater frequency — every 10 minutes
Bus service to Hollins
Bus service in Roanoke County
Service earlier in the morning to get to work by
6:00 a.m.
Bus routes 65/66 — more than every other hour
on Saturdays
Next Steps
Wrap up stakeholder outreach, including
drivers and frontline staff
Write plan chapters
Plan for Chapters 1 -3 in April
Decision-making in May
Draft in June