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Delaware Transit Corporation FY24

Financial Statement Audit – Fiscal Year Ended June 30, 2024

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Report Summary

Background

The Office of Auditor of Accounts presents a financial statement audit of the Delaware Transit Corporation (DTC). This audit was conducted for Fiscal Year ended June 30, 2024. The primary objective of a financial statement audit is to provide reasonable assurance that the financial statements present fairly, in all material respects, the financial position of an entity.

DTC is a division of the Delaware Department of Transportation (DelDOT) and was formed in 1994 to manage the combined operations of DART, the Delaware Administration for Specialized Transit, the Delaware Railroad Administration, and Commuter Services Administration. Currently, DTC operates DART statewide bus services and also contracts with the Southeastern Pennsylvania Transportation Authority (SEPTA), which provides regional rail service in New Castle County.The  division’s mission is to design and provide the highest-quality public transportation services that satisfy the needs of customers and the community.

DTC began basic implementation of the DART Reimagined study in Fiscal Year 2024.  The purpose of this comprehensive transit study is to improve transportation services across the State and chart the course for a more sustainable transit future.  The overarching objectives of this plan include establishing a core network, improving service quality, promoting an easy-to-use system, enhancing user experience, and prioritizing safe access.  The DART Reimagined initiative began implementation in 2024 and will continue over several years of transit service changes through 2028.  When the plan is fully realized, it is expected to provide transit access to 35% more Delawareans.  Also, the overall fleet costs are anticipated to decrease by $49.1 million.

This engagement was conducted in accordance with 29 Del. C. §2906 and 2 Del. C. §1323.

Key Information and Findings

The financial statement audit contains an unmodified “clean” opinion. An unmodified opinion expresses that the financial statements present fairly, in all material respects, an entity’s financial position, results of operations and cash flows in conformity with generally accepted accounting principles.

The auditor’s reports over internal control over financial reporting did not identify any deficiencies in internal control that is considered to be a material weakness.

There were no findings required to be reported under Government Auditing Standards.

Total net position (deficit) at June 30, 2024 was a deficit of approximately $52.1 million, a 145.8% decrease in net position from June 30, 2023, which had a deficit of $21.2 million.  The decrease in net position from 2023 to 2024 is primarily due to an increase in operating expenses of $9.4 million and decrease in federal operating assistance.  Federal operating assistance decreased to $16.6 million for the Fiscal Year Ended June 30, 2024 from $42.6 million for the Fiscal Year Ended June 30, 2023.

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