Comprehensive Annual Financial Report - Metro Transit

Bi-State Development Agency of theMissouri-Illinois Metropolitan DistrictNotes to Financial StatementsJune 30, 2011 and 2010Operating expenses include the cost of services, administrative expenses anddepreciation expenses on capital assets. All revenues and expenses not meeting thisdefinition are reported as non-operating revenues and expenses.Capital Grants and AssistanceAll capital grants and assistance are recorded in the accounting period in which theybecome earned and measurable. Unrestricted, irrevocable operating assistance grantsare recorded as non-operating income. Capital grants and assistance that are restrictedto use for payments of debt service or acquisitions of capital assets are recorded ascapital contributions in the Statement of Revenues, Expenses and Changes in NetAssets.ReclassificationsCertain reclassifications have been made to the prior year’s financial statements toconform to the current year presentation.2.Cash, Cash Equivalents and InvestmentsCash, cash equivalents and investments of Metro are presented on the combinedstatements of net assets as restricted cash and cash equivalents and restrictedinvestments, as discussed in Note 3 (Restricted Assets, page 26), and as unrestrictedcash and cash equivalents and investments. Deposits and investments are segregated,in this footnote, based upon GASB Statement No. 3, Deposits with Financial Institutions,Investments (including Repurchase Agreements), and Reverse Repurchase Agreements,as amended by GASB Statement No. 40.Cash on HandCash on hand, which includes petty cash, working funds (including funds in ticketvending machines) and undeposited receipts, was $721,026 and $753,302 at June 30,2011 and 2010, respectively.Cash DepositsAt June 30, 20011 and 2010, the carrying amounts of Metro’s deposits were $16,428,309and $11,792,392, respectively, and the bank balances were $18,587,484 and$13,182,409 respectively.Custodial Credit Risk. Custodial credit risk is the risk that in the event of a financialinstitution failure, Metro’s deposits may not be returned. Metro’s banking and investmentpolicy authorizes the use of demand deposit and interest bearing bank accounts, andcertificates of deposit. The policy specifies that bank deposits exceeding FDIC insurancecoverage be collateralized with U.S. government or agency securities, or be guaranteedby a surety carrying the highest rating of a nationally recognized credit ratingorganization. As of June 30, 2011, Metro’s bank total bank balance was $18,587,484.23