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HD 6049

A communication from the Lowell Regional Transit Authority (see Section 8(g) of Chapter 161B of the General Laws) submitting financial statements, supplementary information, and a schedule of expenditures of federal awards and OMB uniform guidance auditors’ reports for fiscal year 2025

194th Legislature (2025-2026)

Formalizes LRTA’s FY2025 audited financial statements and related information to the Legislature, ensuring transparency and compliance with state reporting standards.

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Bill Summary · HD 6049

Overview

HD 6049 from the 194th Massachusetts Legislature presents a communication from the Lowell Regional Transit Authority (LRTA) submitting its fiscal year 2025 financial statements, required supplementary information, and schedule of expenditures of federal awards and OMB uniform guidance auditors’ reports. The bill packages LRTA’s audited financials as a legislative filing, consistent with statutory requirements for component units of the Massachusetts Department of Transportation.

Purpose and Intent

  • To provide the Legislature with LRTA’s complete financial reporting for FY2025, including annual financial statements, management’s discussion and analysis, and required and supplementary information.
  • To demonstrate LRTA’s financial position, operating results, cash flows, fiduciary activities, and notes, in accordance with generally accepted accounting principles (GAAP) and Government Auditing Standards.
  • To fulfill statutory reporting obligations under Chapter 161B of the General Laws, Section 8(g), as a component unit of MassDOT.

Key Provisions and Content

  • Independent Auditor’s Report: Auditors Grassi & Co. issue an opinion on LRTA’s basic financial statements for year ended June 30, 2025, and the accompanying notes.
  • Basic Financial Statements:
    • Statement of Net Position
    • Statement of Revenues, Expenses, and Changes in Net Position
    • Statement of Cash Flows
    • Statement of Fiduciary Net Position (OPEB Trust)
    • Statement of Changes in Fiduciary Net Position
    • Notes to the Financial Statements (13–34)
  • Required Supplementary Information (RSI):
    • Proportionate share of net pension liability and related ratios
    • Pension contributions schedule
    • Changes in net OPEB liability and related ratios
    • OPEB contributions
    • Investment returns – OPEB trust
    • Revenues, Expenditures, and Changes in Net Position (budgetary basis)
  • Supplementary Information:
    • Schedule of Net Cost of Service
    • Schedule of Local Assessments
  • Independent Auditor’s Report on Internal Control and Compliance (Government Auditing Standards): Assesses LRTA’s internal control over financial reporting and compliance.
  • Overall tone: The report confirms LRTA’s financial statements and RSI are prepared and audited, with the auditor noting independence and adherence to standards.

Who/What is Affected

  • LRTA operations and finances: fixed-route and paratransit services within LRTA’s service area.
  • Funding sources: federal, state, and local assistance, including ARP funding, and local assessments billed to LRTA’s member communities.
  • Pension and OPEB programs: LRTA’s obligations under the Lowell Contributory Retirement System and postemployment benefits, including fiduciary net positions.

Notable Financial Highlights (FY2025)

  • Total assets: approximately $47.2 million; net position: $32.64 million.
  • Operating loss: about $18.13 million (before nonoperating revenues); nonoperating revenues: about $14.91 million.
  • Change in net position: approximately $1.88 million increase for the year.
  • Capital assets: net of depreciation around $34.77 million.
  • Revenue mix: operating revenues of about $1.27 million; operating expenses (including depreciation) about $19.40 million.
  • Liabilities: total liabilities around $14.53 million; net pension liability and OPEB liabilities indicated in notes.

Procedural and Timeline Details

  • Fiscal year covered: June 30, 2025.
  • Auditor’s report date: March 25, 2026 (with Government Auditing Standards report issued subsequently).
  • The filing aligns with statutory timelines for presenting annual financial statements to the Legislature as a component unit of MassDOT.

This bill essentially formalizes the presentation of LRTA’s audited financial statements and related RSI to the Legislature, ensuring transparency of LRTA’s financial activities and compliance with state accounting and reporting requirements.

Compiled from official sources — confirm details with the bill’s official record.

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