STATE OF NEW HAMPSHIRE DEPARTMENT OF TRANSPORTATION TURNPIKE SYSTEM ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2021 ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2021 Prepared by the State of New Hampshire Department of Transportation Division of Finance Marie A. Mullen, Director of Finance Danielle M. Chandonnet, Financial Reporting Administrator II Sandra K. Eldredge, Administrator III Margaret S. Blacker, Turnpikes Business Administrator Lauren M. O’Sullivan, Financial Analyst Patricia A. Koester, Accountant IV This document and related information can be accessed at http://www.nh.gov/dot/media/publications.htm ORGANIZATIONAL LISTING STATE OF NEW HAMPSHIRE Governor Christopher T. Sununu Executive Council Theodore L. Gatsas Joseph D. Kenney Janet L. Stevens Cinde Warmington David K. Wheeler State Treasurer Monica I. Mezzapelle Secretary of State William M. Gardner Attorney General John M. Formella NEW HAMPSHIRE DEPARTMENT OF TRANSPORTATION Commissioner Victoria F. Sheehan Assistant Commissioner & Chief Engineer William J. Cass, P.E. Deputy Commissioner Vacant Director of Operations David M. Rodrigue, P.E. Director of Finance Marie A. Mullen Financial Reporting Administrator Danielle M. Chandonnet Turnpike System Administrator John W. Corcoran, P.E. Turnpike System Assistant Administrator Renée T. Dupuis Project Manager Nancy L. Spaulding Business Administrator Margaret S. Blacker Maintenance Superintendent Dix E. Bailey THIS PAGE INTENTIONALLY LEFT BLANK Table of Contents Introductory Section (Unaudited)................................................................................................................ 3 Turnpike System Map................................................................................................................................. 3 Commissioner’s Letter................................................................................................................................ 5 Financial Section............................................................................................................................................ 7 Independent Auditors’ Report..................................................................................................................... 8-9 Management’s Discussion and Analysis (Unaudited)................................................................................. 11-16 Basic Financial Statements.......................................................................................................................... 17 Statement of Net Position....................................................................................................................... 18 Statement of Revenues, Expenses and Changes in Net Position............................................................ 19 Statement of Cash Flows........................................................................................................................ 20 Table of Contents – Notes to the Financial Statements.......................................................................... 21 Notes to the Financial Statements.......................................................................................................... 22-39 Required Supplementary Information Section (Unaudited)..................................................................... 40 Information on the Turnpike’s Proportionate Share of Net Pension Liability............................................ 41 Information on the Turnpike’s Proportionate Share of Total Other Postemployment Benefits.................. 42 Other Supplementary Information Section (Unaudited)........................................................................... 44 Budget to Actual (Non-GAAP Budgetary Basis) Revenue Schedule......................................................... 45 Budget to Actual (Non-GAAP Budgetary Basis) Expense Schedule.......................................................... 46 Note to Other Supplementary Information.................................................................................................. 47 1 THIS PAGE INTENTIONALLY LEFT BLANK 2 INTRODUCTORY SECTION (Unaudited) This section includes the Turnpike System map and a letter addressed to the citizens, the Governor of the State of New Hampshire, and the Honorable Council. 3 THIS PAGE INTENTIONALLY LEFT BLANK 4 THE STATE OF NEW HAMPSHIRE DEPARTMENT OF TRANSPORTATION Victoria F. Sheehan William Cass, P.E. Commissioner Assistant Commissioner December 2, 2021 To: The Citizens of New Hampshire, His Excellency the Governor, and the Honorable Council, We are pleased to submit the Annual Financial Report of the New Hampshire Department of Transportation Turnpike System for the fiscal year ended June 30, 2021. The Department of Transportation, Division of Finance, prepared this report. Responsibility for both the accuracy of the financial data and the completeness and fairness of the presentation, including all disclosures, rests with the management of the Department. To the best of our knowledge and belief, the enclosed information is accurate in all material respects and is reported in a manner designed to present fairly the financial position, results of operations, and cash flows of the Turnpike System. All disclosures necessary to enable the reader to gain an understanding of the Turnpike System’s financial activities have been included. This report reflects NHDOT’s commitment to transparency and accountability. Within the pages of this report is a clear demonstration of the effective use and application of toll user fees. We are proud of the accomplishments and prudent fiscal management of the Turnpike System during the pandemic and resulting decrease in traffic experienced on the System. Our team was able to quickly adapt and provide safety to the travelling public and our employees, while maintaining a high level of service to the users of the System. Efficiencies in operations were identified and implemented, while all Renewal & Replacement and active construction projects continued as planned. The manner in which NHDOT personnel have risen to the occasion underscores NHDOT’s innovation, resilience, and resourcefulness. We are proud to be NHDOT! For further information, news, and online publications, please visit us at our website http://www.nh.gov/dot. Respectfully submitted, Victoria F. Sheehan Commissioner JOHN O. MORTON BUILDING • 7 HAZEN DRIVE • P.O. BOX 483 • CONCORD, NEW HAMPSHIRE 03302-0483 TELEPHONE: 603-271-2171 • FAX: 603-271-7025 • TDD ACCESS: RELAY NH 1-800-735-2964 • INTERNET: WWW.NHDOT.COM 5 THIS PAGE INTENTIONALLY LEFT BLANK 6