CHICAGO TRANSIT AUTHORITY COMPREHENSIVEANNUALFINANCIALREPORT FiscalYearendedDecember29, 1990 Preparedby: FinanceBranch CO' — SECTIONII FinancialSection INDEPENDENTAUDITORSREPORT GENERALPURPOSEFINANCIALSTATEMENTS BalanceSheets, December29, 1990andDecember30, 1989 StatementsofExpenses, RevenueandAccumulated Deficit fortheFiscalYearsended December29, 1990andDecember30, 1989 StatementsofCashFlowsforthe FiscalYears endedDecember29, 1990andDecember30, 1989 NotestoFinancial Statements SUPPLEMENTARYINFORMATION — ScheduleofExpenses and Revenues BudgetandActual BudgetaryBasisfortheFiscalYearendedDecember29, 1990 TABLEOFCONTENTS — 1 SECTION INTRODUCTORYSECTION 1 [Thispageintentionallyleftblank] Chicago Transit Authority MerchandiseMart Plaza, P.O. Box3555 Chicago,Illinois60654 (312)6647200 June 30, 1991 ChairmanandMembersoftheChicagoTransitBoard ChicagoTransitAuthority Chicago, Illinois This is the Comprehensive Annual Financial Reportofthe ChicagoTransit Authority forthe fiscal yearended December 29, 1990. This report has been prepared according to the guidelines recommended by the Government Finance Officers Association <>t the United States and Canada. Responsibility forthe accuracy and completeness ofthe data presented in the report rests with the Authority. To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results ofoperations ol the ChicagoTransit Authority. Disclosures necessaryto enable the reader to gain an understandingofthe Authority's financial activities have been included. The ComprehensiveAnnual Financial Report is presented in three sections: introductory, financial and statistical. The introductorysection includes this transmittal letter, a list ofprincipal officials, the Authority's organization chart at yearend, and the service area map. The financial section includes the general purpose financial statements, as well as the auditor's report on the financial statements and schedules. The statistical section includes selected financial, operating and demographic information, generally presented on a multi-year basis. The Authority is required to undergo an annual single audit in conformity with the provisions ofthe Single Audit Act of 198-r and U.S. Office ofManage- ment and Budget CircularA-12(S, AuditsofStateandLocalGovernments. The single audit forthe fiscal yearended December 29, 1990 is due forsubmission to the cognizant agencies by the end of 1991, and has not yet been completed. Any interested partymayobtain a copyofthe single audit torthe priorfiscal year, or may receive the 1990 report when available, by contacting the office ol the Deputy Executive Director. Finance. The Authority also complies with the reporting provisions ofSections <-) and 15 of the Urban Mass Transportation Act of 1964 (as amended), and submits an annual financial and operating report to the Urban MassTransportation Admin- istration in a required format. This format is not in accordance with generally accepted accounting principles, but represents a uniform report and chart of accounts forthe transit industry. The report torthe yearended December 29. L990 is now available and may be obtained by contacting the office ofthe Deputy Executive Director. Finance. THEREPORTING ENTITY The Authority is a municipal corporation, formed in 1945 by the State ofIllinois for the purpose ofoperating and maintaining a transportation system in the metropolitan area ofCook County. CTA provides service primarily to the City of Chicago and its adjacent suburbs. Thegoverningand policy-making body ofthe CTA is the Chicago Transit Board, consisting ofseven members. Three members ofthe Board arc- appointed by the Governorofthe State ofIllinois, and four members are appointed by the Mayorofthe CityofChicago. The Chairman ofthe Transit Board is elected from among the seven Board Members. Clark Burrus has served as Chairman since 1988. The chiefoperatingofficerofthe Authority is the Executive Director Alfred H. Savage was appointed to this position in May of 1990. Before that time. Bernard J. Ford held the position on an acting basis. The Authority staffwas reorganized in 1990 into seven majordivisions, each headed bv a Deputy Executive Director. These division are Operations; Maintenance: Human Resources; Finance; Budget. Planning& MIS; Capital Planning l\: Construction; and Administration The units are organized along functional lines. As disclosed in the financial section ofthis report (Notes to Financial Statements), the Authority has reviewed its reportingentity definition in the light