FRANKLIN REGIONAL TRANSIT AUTHORITY
(A Component Unit of the Massachusetts
Department of Transportation)
Financial Statements and
Supplementary Information
June 30, 2024 and 2023
Table of Contents
Page
Independent Auditors’ Report 2-4
Management’s Discussion and Analysis 5
Financial Statements
Statements of Net Position 6
Statements of Revenues, Expenses and Changes in Fund Net Position 7-8
Statements of Cash Flows 9
Notes to Financial Statements 10 - 23
Required Supplementary Information
Schedule of Authority’s Proportionate Share of Net Pension Liability 24
Schedule of Authority Pension Contributions 24
Supplementary Information
Computation of Operating Assistance
From the Federal Transit Administration 25
Statements of Net Cost of Service 26
Independent Auditors’ Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 27 - 28
 INDEPENDENT AUDITORS' REPORT
To the Advisory Board of the
FRANKLIN REGIONAL TRANSIT AUTHORITY
12 Olive Street, Suite 1
Greenfield, MA 01301
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the business-type activities of the Franklin Regional Transit Authority, as
of and for the years ended June 30, 2024 and 2023, and the related notes to the financial statements, which collectively
comprise the Authority’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial
position of the business-type activities of Franklin Regional Transit Authority, as of June 30, 2024 and 2023, and the
respective changes in financial position, and, where applicable, cash flows thereof for the years then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be
independent of Franklin Regional Transit Authority, and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
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Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually
or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include examining,
on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Franklin Regional Transit Authority’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Franklin Regional Transit Authority’s ability to continue as a going concern for
a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit, significant audit findings, and certain internal control related matters that we identified during
the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's Discussion
and Analysis on page 5 and the Schedule of Proportionate Share of Net Pension Liability and Pension Contributions on
page 24 be presented to supplement the basic financial statements. Such information is the responsibility of management
and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
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Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise
Franklin Regional Transit Authority’s basic financial statements. The accompanying supplementary information on
pages 25 and 26 is presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 16, 2024 on our
consideration of the Franklin Regional Transit Authority's internal control over financial reporting and on our tests of
its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Franklin Regional
Transit Authority's internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Franklin Regional Transit Authority’s
internal control over financial reporting and compliance.
ADELSON & COMPANY PC
September 16, 2024
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 FRANKLIN REGIONAL TRANSIT AUTHORITY
(A Component Unit of the Massachusetts Department of Transportation)
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2024
The Franklin Regional Transit Authority’s (the Authority) discussion and analysis for the fiscal year ended June
30, 2024 is designed to assist the reader in focusing on significant financial issues, provide an overview of the
Authority’s financial activity, identify changes in the Authority’s financial position and identify any material
deviations from the financial plan (the approved budget).
Reporting Entity
The Authority provides public transportation and operates under Massachusetts General Laws (MGL) Chapter
161B as a body politic and a corporate and political subdivision of the Commonwealth of Massachusetts. The
Authority is a component unit of the Massachusetts Department of Transportation. Massachusetts provides
funding to the Authority. See Note 1 to the financial statements for additional information on the reporting entity.
Financial Highlights
 The assets and deferred outflows of resources of the Authority exceeded its liabilities and deferred
inflows of resources at June 30, 2024 by $31,448,543.
 The Authority’s cost of operations for fiscal year 2024 were fully covered with operating revenues
(demand response income, advertising, rental and other miscellaneous income) and government support
(federal, state, and local operating subsidies). See the Authority’s net cost of service calculation on page
26 of the financial statements.
 The Authority’s total net position decreased $366,687 from fiscal year 2023, mainly due to the following
items: contributed capital received from the federal and state government for the acquisition of capital
assets and construction of the new maintenance facility of $1,491,473, current year non-reimbursable
depreciation on capital assets of $1,800,725 and other non-reimbursable expenses of $61,288, an increase
in the Authority’s reserve of $9,864 as allowed under M.G.L. 161B Section 6(q), and an increase in the
Authority’s net pension liability and related deferred outflows and inflows of resources of $6,011 which
are non-reimbursable items at this time.
 Operating revenues decreased $9,665 or 5.6% from fiscal year 2023.
 Operating expenses increased $79,923 or 1.7% from fiscal year 2023. This was primarily due to a
decrease in fixed route service expenses of $29,343, an increase in demand response service expenses of
$242,066, and a decrease in administrative expenses of $132,800.
 The Authority has received Federal CARES Act operating assistance under 49 USC Section 5311, passed
through the Massachusetts Department of Transportation. The funding awarded to the Authority totals
$3,795,381 and is available to cover 100% of eligible operating expenses and costs incurred in response
to COVID-19 beginning January 20, 2020 until fully spent through 2029. The Authority has used
$2,571,339 of this funding through fiscal year 2024. The remaining balance of $1,224,042 is carried
forward to fiscal year 2025.
 The Authority’s operations are funded annually through a required computation of the net cost of service.
Except for the establishment of a restricted reserve, the Authority’s funding cannot exceed its net cost of
service. However, a deficit can result if funding is not sufficient to cover expenses.
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 FRANKLIN REGIONAL TRANSIT AUTHORITY
(A Component Unit of the Massachusetts Department of Transportation)
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Year Ended June 30, 2024
Overview of the Financial Statements
The Authority is a component unit of Massachusetts Department of Transportation formed for the purpose of
carrying out business-type activities in western Massachusetts communities. The Authority’s financial statements
consist of three main statements: a Statement of Net Position, a Statement of Revenues, Expenses and Changes in
Fund Net Position, and a Statement of Cash Flows. Notes and supplementary information that disclose
information about the nature of the Authority’s business, accounting policies and additional information about
specific statement amounts follow these statements.
The Authority’s net position consists almost exclusively of its net investment in capital assets (e.g. land,
intermodal transit center, revenue vehicles and equipment); less any related debt used to acquire those assets that
are still outstanding. The Authority uses these capital assets to provide fixed route and demand response services
to individuals within its service area; consequently, these assets are not available for future spending.
Although the Authority’s investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt, if any, must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities. The Authority currently has no capital lease obligations or
capital debt. Net position also consists of a reserve for extraordinary expenses as allowed by Massachusetts
General Laws Chapter 161B Section 6(q). Unfunded deficits, if any, are reported as unrestricted net position.
The Statement of Revenues, Expenses, and Changes in Fund Net Position report the results of both operating and
non-operating activities. The Statement of Cash Flows, which is presented using the direct method, accounts for
the change in the cash and equivalents balance between July 1 and June 30. The cash flows statement provides
the detail on the cash the Authority received from and paid for operating and non-operating activities, investing,
and financing activities.
Summary of Net Position
6/30/2024 6/30/2023 Change
Total current assets $ 3,820,614 $ 3,998,900 $ (178,286)
Property and equipment, net 30,089,532 30,428,891 (339,359)
Deferred outflows of resources related to pensions 385,980 505,488 (119,508)
Total assets and deferred outflows of resources 34,296,126 34,933,279 (637,153)
Accounts payable and accrued expenses 621,996 764,040 (142,044)
Note payable 1,100,000 1,100,000 -
Unearned revenue 160,886 247,302 (86,416)
Net pension liability 686,514 779,980 (93,466)
Deferred inflows of resources related to pensions 206,696 226,727 (20,031)
Total liabilities and deferred inflows of resources 2,776,092 3,118,049 (341,957)
Investment in capital assets, net of related debt 30,089,532 30,428,891 (339,359)
Invested in capital funded inventory 8,632 31,714 (23,082)
Restricted reserve 114,000 104,136 9,864
Unrestricted 1,236,379 1,250,489