Management’s Discussion and Analysis
The purpose of Management’s Discussion and Analysis (MD&A) is to help readers understand what the financial statements and notes in this financial report say about the Maryland Transportation Authority’s (MDTA) financial health and why it changed since last year. It contains information drawn from various parts of the report, accompanied by explanations informed by the finance staff’s knowledge of the MDTA’s finances. If you have questions about this report or require further information, please see the MDTA’s website, www.mdta.maryland.gov. Financial information can be found in the “About the MDTA” section of the website. The MDTA’s executive offices are located at 2310 Broening Highway, Baltimore, Maryland, 21224, and the main telephone number is 410-537-1000. Overview of The Financial Statements The MDTA is an independent agency of the State of Maryland that was created to manage the State’s toll facilities as well as to finance certain new revenue-producing transportation projects. The MDTA is a non- budgeted agency that relies solely on revenues generated from its transportation facilities. Disposition of these revenues is governed by a Trust Agreement between the MDTA and its Trustee. The MDTA is accounted for as a proprietary-type enterprise fund using the accrual basis of accounting, similar to a private business entity. Financial Statements The financial statements included in this report are the: Statement of Net Position; Statement of Revenues, Expenses, and Changes in Net Position; and Statement of Cash Flows. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board (GASB). Statement of Net Position The Statement of Net Position depicts the MDTA’s financial position as of a point in time and includes all assets, liabilities, deferred inflows, and deferred outflows of the MDTA. The net position represents the residual interest in the MDTA’s assets and deferred outflows after liabilities and deferred inflows are deducted and is displayed in three components: 1) net investment in capital assets; 2) restricted; and 3) unrestricted. Statement of Revenues, Expenses, and Changes in Net Position The Statement of Revenues, Expenses and Changes in Net Position reports the revenues and expenses of the MDTA that are used to measure the success of the MDTA’s operations for a given period of time and how the MDTA has funded its operations.
32 | Maryland Transportation Authority | Management’s Discussion And Analysis
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