Office of the Legislative Auditor - Financial Audit Division

Report Summary
Metropolitan Council
Transit Financial Activity Review

 

Financial Audit Division

Released January 4, 2019

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The Metropolitan Council (Council) works with state and local government entities to plan for the future of the Twin Cities metropolitan region. The Council also provides services to citizens, including wastewater treatment and public transit. A 17-member governing board oversees the Metropolitan Council, with most members representing geographical districts in the Minneapolis-Saint Paul metro area.

Under current state law, the Office of the Legislative Auditor (OLA) must “perform a transit financial activity review” four times yearly, using information provided by the Council and the Counties Transit Improvement Board (CTIB).¹ CTIB was dissolved on September 30, 2017, and was not included in our review.² The law requires OLA’s financial reviews to include:

• Summaries of monthly financial statements, including balance sheets and operating statements that show income, expenditures, and fund balances.
• Lists of transit-related obligations and agreements, including bonds, notes, grants, and future funding commitments.
• Information regarding the amount of funds that have been committed.
• Analysis by OLA of the “fiscal viability of revenues and fund balance compared to expenditures.”
• OLA comments regarding compliance by the Metropolitan Council in providing the required information for this report.

Conclusions

For transit-related activities, the Council was on solid financial footing. The Council generated adequate revenues to meet its obligations. The Council also had a strong balance sheet, with assets that exceeded liabilities and reserves that exceeded its policy requirements.

 

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¹ Laws of Minnesota 2017, First Special Session, chapter 4, art. 2, sec. 6, subd. 4, codified in Minnesota Statutes 2017, 3.972, subd. 4.

² CTIB, Resolution #32-2017, Relating to the Dissolution of the Counties Transit Improvement Board, May 31, 2017. CTIB, Resolution #35-2017, Relating to the Termination of the Counties Transit Improvement Board’s Joint Powers Agreement, Satisfaction of CTIB Conditions, and Notice of the Termination of the Tax to the Minnesota Department of Revenue, June 21, 2017.