Statement of Net Assets:
The statement of net assets presents information on all of OCTA’s assets and liabilities, with the difference between them reported as net assets. Information presented in the statement of net assets can be used to assess OCTA’s ability to cover its costs and to continue financing services in the future. Increases or decreases in net assets are a useful indicator of whether the financial position of OCTA is improving or deteriorating over time.
Statement of Activities:
The statement of activities presents information identifying how OCTA’s net assets changed during the fiscal year. It includes information on the costs of providing public services (expenses) and the resources obtained to finance those services (revenues). All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of when the actual cash is received.
Both statements distinguish functions of OCTA as either governmental activities (supported by taxes and intergovernmental revenues) or as business-type activities (where a significant portion of costs are recovered through user fees and charges).
DEFINITIONS:
Condemnation deposits:
These are deposits paid to the State of California that are held for condemnation of property.
Capital assets:
Tangible and intangible property with an initial unit cost of more than $5,000 and a useful life exceeding one year.
Nondepreciable:
Capital assets that generally do not decrease in value over time. Examples include land and construction in progress.
Depreciable and amortizable:
Capital assets that decrease in value over time due to age, obsolescence or wear and tear. Examples include
buildings and improvements, machinery, equipment, furniture, transit vehicles and the toll facility franchise.
Unearned revenue:
A liability to offset assets recognized in connection with a transaction before the earning process is complete.
Derivative instruments:
Parity interest rate swaps entered into as a means to lower OCTA’s borrowing costs on variable rate debt for the 91 Express Lanes. Derivates are used by OCTA as a tool for bonafide hedging investments as stipulated in OCTA's annual investment policy.
General government:
General government is a function reported as a governmental activity on the statement of net assets and statement of activities that comprises all the activity reported in OCTA’s General Fund, Local Transportation Fund, Orange County Unified Transportation Trust (OCUTT), State Transit Assistance Fund (STAF), Gas Tax and Capital Project Funds.