Septa hiding 130 million - Page 2 - PhillyBlog

ewonder · #11 (**permalink**) 06-28-2008, 11:03 PM

Septa should reduce fares with the $130, 000, 000.00 they squirreled away.

Mixiboi · #12 (**permalink**) 06-29-2008, 01:57 AM

Quote:

Originally Posted by ewonder

Septa should reduce fares with the $130, 000, 000.00 they squirreled away.

Yeah, that'll happen when gas prices go back under 3 bucks.

When things are more stable, we can talk about lowering fares. But right now isn't the right time.

Not when that 130 isn't exactly that secure.

rgranter · #13 (**permalink**) 06-29-2008, 01:59 AM

Quote:

Originally Posted by eldondre

perhaps they were trying to hide it from the unions like the city usually does.

You think maybe squirrling it away to provide Golden Parachutes for the muckity-mucks?
So many responding still don't get it. Its not about what to do with the money.
Its about the fact that they tried to hide it. Even going to the trouble to make up two sets of books.
I thought Enron had shown the importance of Accounting Ethics and Standards as outlined below by the Financial Accounting Standards Board :
41. Financial reporting should provide information about an enterprise's economic resources, obligations, and owners' equity. That information helps investors, creditors, and others identify the enterprise's financial strengths and weaknesses and assess its liquidity and solvency.
Information about resources, obligations, and owners' equity also provides a basis for investors, creditors, and others to evaluate information about the enterprise's performance during a period (paragraphs 42-48). Moreover, it provides direct indications of the cash flow potentials of some resources and of the cash needed to satisfy many, if not most, obligations.
.
http://www.fasb.org/pdf/con1.pdf Page 18.
Copyright © 1978, Financial Accounting Standards Board Not for redistribution

MarketStEl · #14 (**permalink**) 06-29-2008, 08:25 AM

Quote:

Originally Posted by rgranter

As stated. Since the inception of public transportation, over 101 years ago, not once has a 'Rainy Day Fund' existed.
The General Managers of Phila.Rapid Transit (established 1907) and its successors till now had no need for one. Managers were held responsible to maintain a balanced budget and not present a false audit.
Name one company large or small today that would not be subject to a major criminal investigation for having double books. The IRS would be all over them.
Facts are facts. These guys were hiding 130 million dollars. Why? When first asked about the money they answered, "it does not exist". When asked at a later date they said, "it is off-limits" When pressed yet again during another public meeting they suddenly came up with "the Rainy Day Fund".
I'm sure a Public Relations firm has been, or will be hired from these funds to put spin on their obvious flaunting of Accounting Standards.
When determining a budget all income is included. If there is a surplus it is listed in the Assests Column for all to see.

http://en.wikipedia.org/wiki/Septa

As I believe I said in my prior post, they deserve your brickbats for the shady accounting.

And maybe even your suspicion for hiding the surplus in the first place.

Private companies also retain earnings at times if they foresee trouble ahead in the business, though. There is no requirement that a company distribute all profits to shareholders as dividends. But -- as you noted above -- when they do, they show the retained earnings as an item on the balance sheet.

eldondre · #15 (**permalink**) 06-29-2008, 02:40 PM

governments don't follow FASB. is there some indication that SEPTA management was intending to use the money on themselves?

daveydoo · #16 (**permalink**) 07-07-2008, 02:07 PM

And what of SEPTA's "dedicated funding?"

http://www.philly.com/inquirer/world_us/23411274.html

Mixiboi · #17 (**permalink**) 07-07-2008, 04:22 PM

And there goes the money....

eldondre · #18 (**permalink**) 07-07-2008, 05:03 PM

to add insult to injury, I read a report stating that SEPTA is planning to clear out the former reading main to bethlehem. we're going backwards faster than a TGV train.

Nytecat · #19 (**permalink**) 07-07-2008, 06:40 PM

Quote:

Originally Posted by eldondre

to add insult to injury, I read a report stating that SEPTA is planning to clear out the former reading main to bethlehem. we're going backwards faster than a TGV train.

In other words, SEPTA is deliberately trying to make it IMPOSSIBLE to restore service to Quakertown and Bethelehem, just as they have already done with the Newtown line?

Nice.

eldondre · #20 (**permalink**) 11-17-2008, 10:34 AM

Quote:

Originally Posted by rgranter

Septa is hiding 130 million dollars which should be used for the riders.
We are the ones who suffer through every State budget as Septa plays Oliver Twist begging for more.
Now they have it and refuse to use it.
Against State audit laws they have not even listed it on their annual budgets.
Somebody is playing footloose with our money.
Septa was willing to sacrifice our safety and let Septa Security go on strike rather than let loose money they have squirrled away.
This money is given by the State for current use not to be put away as some fund to provide administration with a payroll in case of a future funding shortage.
If Septa isn't using the money as intended it should be returned to the State's General Fund.

Quote:

Coupled with declining revenue from state taxes, the pension-fund losses may force SEPTA to limit plans to expand service and improve stations.
The transit agency will not raise fares next year to cover the losses, officials said. But it may tap its "service stabilization fund," an off-the-books $130 million surplus set aside for future expenses. From October 2007 to last month, the value of SEPTA's pension fund fell from $800 million to $550 million, a drop of 31 percent. And the fund's value declined further this month, chief financial officer Richard Burnfield said.

http://www.philly.com/inquirer/local...d_healthy.html

It's budget woes have returned

Quote:

SEPTA and other public agencies are not bound by the federal Employee Retirement Income Security Act, which sets minimum standards for pension plans in private industry. But SEPTA has to "look at our fiduciary responsibility" and bolster the funds, Burnfield said. "We don't want to start underfunding pensions and our other obligations," he said. "Sooner or later, those chickens come home to roost."..

SEPTA, which is only five months into its budget year, also faces reduced revenue from the state, as sales-tax receipts drop with lower consumer spending. SEPTA gets 4.4 percent of Pennsylvania's sales tax revenue, which last year amounted to about $400 million.
SEPTA and other transit agencies also face the prospect of less state money because of Pennsylvania's inability to institute tolls on Interstate 80. That plan was a key part of a transportation funding law, Act 44, the legislature enacted last year. But in September, the Federal Highway Administration rejected Pennsylvania's application for the tolls.
Without that money, Pennsylvania's mass-transit agencies stand to get $150 million a year less than anticipated.
SEPTA will scale back planned capital projects, which include station improvements, new vehicles and equipment upgrades. SEPTA officials said they have not determined which projects will be curtailed. Other transit agencies are also struggling with budget problems, including higher pension costs