canadian urban transit association annual report 2018 · highlights 9. financial position 9....

C A N A D I A N U R BA N T R A N S I T A S S O C I AT I O N A N N U A L R E P O R T 2 0 1 8

VA L U E . I M PAC T. N E T W O R K I N G. E N G AG E M E N T.

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• V A L U E . I M P A C T . N E T W O R K I N G . E N G A G E M E N T . - C U T A A N N U A L R E P O R T - 2 0 1 8 •

Value. Impact. Networking. Engagement. The theme of this annual report reflects CUTA’s vision and mission to give our members a variety of forums for discussion, as well as the best possible tools and opportunities to build dependable transit and integrated urban mobility services across Canada.

Our transit system and business members work hard to ensure that Canadians get where they need to go in their communities every day. As the transit industry grows and evolves to meet the rapidly changing times, CUTA is proud to be here for its members, delivering our services to meet your changing needs and evolving right along with you.

CUTA’s mission supports value, impact, networking and engagement as well as innovation and excellence. We are proud to work with our members to help shape the direction our industry will take over the years to come.

V I S I O N

To inspire and influence the evolution of integrated urban mobility.

M I S S I O N

CUTA is the collective and influential voice of public transportation in Canada, dedicated to

being at the centre of urban mobility issues with all orders of government and delivering the

highest value to its members and the communities they serve.

CUTA will be the go-to organization for information, trends, networking and training, providing

leadership for its members and all stakeholders.

To operate effectively, CUTA will foster a culture of active engagement with its members.

CUTA will deliver a high-performance working environment. Its team will be consummate

experts and professionals.

Success will be measured by an action-oriented focus, achievements, and contributions to

member success.

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T A B L E O F C O N T E N T S

Message from the Chair 5

Message from the President & CEO 7

Highlights 9

Financial Position 9

Membership 9

Communications and Marketing 9

Advocacy 10

Governance 13

Conferences and Awards 14

Research and Technical Services 17

Learning 18

Executive Committee 20

Board of Directors 21

Staff 22

Auditor's Letter 23

Financial Statements 24

Notes 28

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Last year was an eventful year for CUTA. I took over as chair at the CUTA symposium in in the spring of 2018, following on the footsteps of my predecessor Sue Connor, who provided strong leadership and will continue to contribute her wealth of knowledge as past chair. We also welcomed our new CEO, Marco D’Angelo. Marco has worked for CUTA before, beginning in 2003, so he is no stranger to the organization and he's excited to be back as CEO. Many thanks to Wendy Reuter for taking on the role of CEO following Patrick’s departure.

I am proud of the work we’ve accomplished over the past year and the day-to-day commitment of both our engaged CUTA members and dedicated CUTA staff. Transit investments by all orders of government are being made in response to the strong business case transit has for Canadian communities. There have been important investments across Canada, both large and small, including unprecedented investments in rail for Montreal, Ottawa, Calgary, Edmonton, and Toronto.

This continued investment is paying off as shown by transit ridership growth of 1.5%. Beyond ridership, we are experiencing transit and integrated mobility gains in much broader ways. Through investments and improvements, we have been able to reduce barriers, both physical and financial, for citizens to get around their communities. The economic, environmental, health, and social benefits of using transit are being realized by Canadians.

In 2018, we started the year in Vancouver exploring the future landscape of mobility, and in the fall while in Toronto, we renewed our focus on the customer. Our dialogue over 2018 included exploring the transit infrastructure gap across Canada and looking at the impact of impairment in the workplace and fitness for duty, which was timely with the introduction of cannabis legislation in October.

At CUTA, we continue to pursue our vision to inspire and influence the evolution of integrated urban

mobility in Canada by being the voice of public transit and pressing the issues that are important to our members. We focus on member value by playing a central role for information, trends, and industry leadership. Our events and training programs provide opportunities for our members to engage, discuss, and move the industry forward.

Politics may change, but the value of integrated mobility remains constant. CUTA must continue to explore and create new opportunities to do business and we will harness the horsepower of our association and members to be an influential voice in Canada and around the world. We will also explore new partnerships with other agencies, like APTA and UITP, with a stronger CUTA member-value perspective.

It is encouraging to see intense interest in public transit across the country. Canadians support increased investments in public transit in the future. In 2019, CUTA will build on the success of 2018 and deliver on our mission.

Doug Morgan Chair, CUTA Board of Directors

MESSAGE FROM THE CHAIR OF THE BOARD

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Each day, Canadians take more than 5.5 million trips on public transit. And last year for the first time in many years, ridership grew, and so did transit funding in several provinces. I mention this because our industry is more relevant to more people and more governments than ever before. We’re essential to the daily lives of our neighbours, linking them with work, school, and each other.

So it’s good news that CUTA is also growing, with almost 50 new members last year and a growing financial capacity to do what you tell us you value: our advocacy to keep transit top of mind with decision makers; our research and data; our training and professional development; and our conferences, where we can learn from each other and experts from around the world.

As our industry grows and affects more people, we owe it to them to keep abreast of best practices at home and abroad. We also owe it to our industry. By improving our customer service, efficiency, and technology we make the rides better for everyone who depends on us, which in turn helps decision makers understand how important investment is.

That’s what we mean by the theme of this report – Value, Impact, Networking and Engagement – and what we’ll deliver to our members this year.

We are continuing our important advocacy work in Ottawa. Last year, we were active in the capital with committee work, budget submissions, and a reception hosted by the Speaker. With an election approaching, we’re stepping up our engagement efforts with all parties and will be engaging with voters as well to keep our issues front and centre.

I’ve heard lots of praise for the spring symposium on urban mobility held in Vancouver, and I was proud our annual conference in Toronto drew a record number of

people. On the CUTA training front, a survey showed that more than 80% those who took our courses gave us a 9 or 10 out of 10.

We kept our members up to date too, through our biweekly newsletter, our quarterly magazine, our website and social media channels. In 2018 we began a member-contribution blog to help our members learn from each other, and we launched our first photo competition that provided some great shots that made our Transit Awareness Days even better. This spring, we’re looking forward to releasing a distance learning course on maintenance and asset management so people can learn the latest wherever they call home.

Thank you for taking the time to read our annual report and thank you for your feedback on our programs and services. Please keep it coming. We can always improve.

On a personal note, I’d like to thank my predecessors for their leadership. Thanks also to our staff and board for their warm welcome last year. I look forward to working with them and with you to make this year even better.

Marco D’Angelo President & CEO

MESSAGE FROM THE PRESIDENT & CEO

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HIGHLIGHTS

FINANCIAL POSITION

Steady member support at CUTA events and consistent membership renewals combined with sound financial management contributed to good financial results in 2018. CUTA is well positioned as we continue to implement our strategic plan as well as other initiatives to help build a stronger association.

MEMBERSHIP

CUTA was pleased to welcome 47 new members in 2018, which brings our current membership to 493 as we go to press. As the urban mobility landscape evolves, so does the diversity of CUTA’s membership. Being a member of CUTA means being connected to transit systems, manufacturers and suppliers, consultants, affiliate national and international associations, educational institutions, research organizations, alternative energy companies, technology firms, provincial government departments and thought leaders.

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COMMUNICATIONS AND MARKETING

CUTA’s communications team ensures that members and the public know what is happening in the transit industry in real time. From international trends and national transit news to stories about your local transit system, CUTA provides valuable information to make sure your organization stays up to date. Whether it is through our website, Urban Mobility Forum magazine, our bi-weekly EXPRESSions newsletter, blog posts or on social media, CUTA keeps you current.

In 2018 we launched a member-contribution blog series. We welcomed insightful and engaging submissions from many of our members and we look forward to many more next year. We held our first photo competition to showcase the beauty, complexity and benefits of transit. The contest was open to members and the public and we received a great selection of photos from across the country, including the one you see on page 8 of riders exiting a Roam Transit bus at Lake Minnewanka in Banff National Park, Alberta. We also created a lively infographic to get CUTA's message across in an easy-to-understand way to members and other stakeholders.

HIGHLIGHTS

ADVOCACY

CUTA is the voice of the Canadian transit community in Ottawa. We promote integrated urban mobility and other important industry issues at the national level. The federal government is increasingly active in setting policy that affects the transit sector. This includes infrastructure investments, transportation regulations, environmental standards, international trade rules and innovation policy frameworks. As an active stakeholder on Parliament Hill, CUTA raises awareness of our members’ positions on issues and contributes to the debate..

In 2018, our public affairs team in Ottawa continued to influence policy development, track, assess and report on new regulatory issues, and organize advocacy events that put the transit industry on centre stage.

Last year, we focused our advocacy efforts on ensuring that the billions of dollars for building 21st century transit infrastructure are available to Canadian municipalities without delay. We also advocated for the federal government to lead efforts to combat congestion in Canada’s urban environments. Bottlenecks caused by congestion are throttling our cities, slowing mobility for travelers and costing our local economies billions in lost GDP.

CUTA was consulted by federal departments on the government’s efforts to develop a regulatory framework for autonomous

and connected vehicles (AV/CVs). The sharing of industry best practice and the push to support a shared future for AV/CVs with transit at its heart would offer opportunities for our business members and transit systems alike.

Over 100 people attended our Transit Awareness Days and policy forum, and CUTA members held over 60 face-to-face meetings with parliamentarians, ministry officials and key stakeholders. This event saw important buy-in from the government, with new Infrastructure Minister François-Philippe Champagne providing the keynote speech at our policy forum in his first public engagement on the infrastructure portfolio. The Speaker of the House of Commons, Geoff Regan MP, also hosted a reception for CUTA members. Over 30 MPs and senators attended to network with CUTA members.

CUTA will continue its comprehensive engagement strategy in 2019. This includes the preparation and implementation of our federal election strategy and targeted advocacy initiatives on key industry policy issues. We have strong relationships with important transit stakeholders and we hope to get renewed commitments to increase mobility for Canadians from all federal political parties.

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The wide array of services offered to CUTA's members fosters a culture of exchange of expertise at the provincial and national levels. CUTA has inspired the Réseau de Transport de la Capitale in Québec City on the road towards integrated urban mobility.

Alain Mercier, General Manager, Réseau de transport de la Capitale (RTC)

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HIGHLIGHTS

GOVERNANCE – BOARD OF DIRECTORS

In 2018, the CUTA Board of Directors consolidated its approach to analyzing emerging trends and guiding the development of policy to meet the challenges of tomorrow for the transit industry. Board members mandated CUTA committees to assess and report back on issues as diverse as workforce development best practices, ridership methodologies and user behaviours.

The board also addressed transit operator fitness for duty following the legalization of cannabis in Canada, the transit industry’s infrastructure investment needs over the next decade, and the transit community’s position on intercity public transportation and its importance for rural and remote communities. This thought leadership led CUTA to find innovative ways to promote integrated urban mobility with stakeholder groups and advocate key issues with the federal government.

GOVERNANCE – COMMITTEES

CUTA committees are an effective way to move industry issues and initiatives forward. They also offer members the opportunity to network with like-minded colleagues, sharing problems, solutions and expertise. In 2018, our hard-working committee members rolled up their sleeves to work on many key issues. The Workforce Development Committee, for example, completed its work on fitness for duty relating to cannabis legalization – an important and timely effort. Its sub-committees engaged in important discussions about railway crossing safety, proper

pre-trip inspections, fatigue management of operators, absence management and metrics, excellence in customer service, and driver safety when dealing with difficult passengers.

The Transit Board Members Committee continued its research into autonomous vehicles, transportation network companies, electrification and smart card technology, ridership, and infrastructure needs in the transit industry.

Thanks to all committee members for your excellent ideas, hard work and commitment to CUTA.

The Technical Services Committee (TSC) allows members to share their experience and knowledge, working together and exchanging data, research, and best practices that improve the customer journey. As of member of the TSC’s Accessible Transit Sub-Committee I have gained access to information and a peer network that I never would have otherwise.

Dana Earl, Supervisor – Customer Care & Administrative Services, Thunder Bay Transit

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HIGHLIGHTS

CONFERENCES

In June, CUTA put on a one-day symposium about new mobility. With panels of industry experts from around North America and Europe, several industry leaders described it as the most informative CUTA event they had ever attended. Speakers unpacked the changing landscape of urban mobility and how it affects transit.

In November, our annual conference was the most well-attended CUTA conference to date. The speakers did a deep dive on the theme of "putting the customer at the heart of transit" and our hosts Metrolinx and TTC offered engaging technical tours that showed how these two systems are breaking ground in transit infrastructure.

AWARDS

In 2018, it was decided that both our awards ceremonies would take place at our annual conference in November. The result was a gala breakfast award program that brought together people from across the transit sector to be recognized for their outstanding contributions to the industry.

We were delighted to celebrate John Ford (London Transit Commission) for his 37-year-long career in the transit industry as a Hall of Fame inductee and William G. Ross Lifetime Award recipient. We were also happy to recognize Paul Smith from New Flyer for the William G. Ross Lifetime Award for his outstanding contributions.

Awards also recognized systems such as Metrolinx, STM, St. Albert and BC Transit, as well as business members such as Transit App and Hyperlight Sytems.

One of the most moving parts of the morning was the presentation of the Edward J. Dowling Award for Distinguished Service to the late Alfred Hutton Stockwell.

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It was absolutely jam-packed with interesting speakers and discussions and my head was exploding by the end from all the new concepts.

James McDonald, Director of Transit, Saskatoon Transit

HIGHLIGHTS

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HIGHLIGHTS

RESEARCH AND TECHNICAL SERVICES

CUTA’s research links members to a vast body of knowledge on public transit and urban mobility and responds to unique Canadian needs. In 2018, we released an integrated mobility toolbox, a resource for those wishing to advance their communities towards integrated mobility. Preparations are underway to turn the toolbox into a living resource that will continually gather and host case studies.

CUTA also produced unique ridership trends research – the first of its kind in more than 10 years and the only study truly applicable to Canada. With this research, over 70 service-level and socioeconomic factors that influence transit ridership were evaluated both locally and nationally. The study uncovered significant findings and provided modelling tools for understanding the complexities of transit ridership.

We introduced new technology to CUTA's data program that will make it more flexible for users. It will also allow us to respond to the escalating demands for data and perform analytics and visualization of key industry data. We updated the program after consulting with members to ensure relevancy, comparability and potential to be shown publicly. This new technology was piloted to collect and report our specialized transit data.

Positioning CUTA as a centre of excellence in transit and urban mobility means enriching and expanding the reach of our research, data, networks and communications and making our expertise and resources more widely available. CUTA has been developing an online platform to showcase transit and urban mobility data and research on subjects like electrification, community benefits and rider insights, using artificial intelligence. This exciting new section of cutaactu.ca, launching in 2019, will feature research, opinions on 10 trending topics in urban mobility, and cutting-edge data visualization.

We take an active role with other associations and groups on a broad range of issues to both provide and gain insights. In 2018, we maintained 19 collaborative agreements with other organizations and joined the advisory boards of the National Research Council’s Surface Transportation Centre and the Transport Canada & ISED Canada Vehicle of the Future initiative, as well as the Transportation Cooperative Research Program. In 2019 we plan to expand this outreach to bring resources from CUTA and many of these partner organizations to our members through the Centre of Excellence new webinar program.

Since the technical services department provides feedback from agencies across Canada, it has been incredibly helpful for a small transit agency to learn from the successes and experiences of others.

Anthony Dionigi, Transit Supervisor, Fort Saskatchewan Transit

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HIGHLIGHTS

LEARNING

2018 saw the continuation of our most popular courses at CUTA and the training of scores of transit professionals. We were pleased that 83% of our students gave us a 9 or 10 out of 10 when asked whether they would recommend a course to a colleague. Last year also saw the conclusion of the first phase of our partnership with the Federation of Canadian Municipalities and the beginning of the next. In the first phase, we trained maintenance staff and managers from across Canada on the fundamentals of asset management.

We also began the complete rewrite of our 5-day maintenance and asset management course into a 12-week distance learning course in conjunction with noted asset management experts. This unique course (the only one in Canada) will begin in the spring of 2019 and will feature newly designed templates and workbooks to help transit agencies ease into an asset management framework.

One of Thunder Bay Transit’s key 2019 objectives is to embark on building a customer-first culture to better adapt to the evolving transit needs of our customers. This course [Transit Ambassador] is a critical first piece for us as we start off in that direction and will make the job of engagement and buy-in from our front-line workforce that much easier.

Brad Loroff , Manager, Transit Services Division, Thunder Bay Transit

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EXECUTIVE COMMITTEE 2018

NAME POSITION

Doug Morgan, Calgary Transit Chair Alain Mercier, Réseau de transport de la Capitale First Vice-ChairSuzanne Connor, Burlington Transit Immediate Past-ChairPat Delmore, Transit Windsor Vice-Chair, FinanceKevin Desmond, TransLink Vice-Chair, Communications & Public AffairsGreg Percy, Metrolinx Vice-Chair, Technical ServicesJames McDonald, Saskatoon Transit Vice-Chair & National Chair,

Workforce DevelopmentCheri Malo, Whitehorse Transit Vice-Chair, Small SystemsSean Rathwell, Dillon Consulting Vice-Chair & National Chair, Business MembersJean-Pierre Miroux, Thales Vice-Chair, Business MembersLaurent Chevrot, Réseau de transport de Longueuil Vice-Chair, Integrated MobilityWes Brodhead, City of St. Albert Vice-Chair, Municipal Councils & National Chair,

Transit Board Members CommitteeBrian Leck, Toronto Transit Commission Honorary CounselMarco D’Angelo, CUTA President & CEO

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BOARD OF DIRECTORS 2018

NAME POSITION

Dave Reage, Halifax Transit DirectorKevin Schubert, BC Transit DirectorEddie Robar, Edmonton Transit Service DirectorDave Wardrop, Winnipeg Transit DirectorVincent Patterson, Durham Region Transit DirectorJohn Manconi, OC Transpo DirectorKelly Paleczny, London Transit Commission DirectorTim Luey, St. Catharines Transit DirectorAnn-Marie Carroll, York Region Transit DirectorTony D'Alessandro, Town of Milton DirectorLuc Tremblay, Société de transport de Montréal DirectorChris Akiyama, Seon Design DirectorJennifer McNeill, New Flyer DirectorAmy Miller, Clever Devices DirectorEmmanuelle Toussaint, Nova Bus DirectorDennis Fletcher, Steer Davies Gleave DirectorBruce McCuaig, AECOM DirectorYvonne René de Cotret, Deloitte Canada DirectorDaniel Bergeron, Autorité régionale de transport metropolitain

Director

Lorenzo Mele, Region of Peel DirectorMarie-Chantal Ross, National Research Council Canada DirectorVinay Sharda, Ontario Ministry of Transportation DirectorPhilippe Bellon, Metrolinx National Chair, Technical ServicesChristine Terin, York Region Transit National Chair, Communications

& Public Affairs Wade Coombs, Strathcona County Transit Regional Chair,

Prairie Provinces & TerritoriesJudy Powell, St. John's Transportation Commission Regional Chair, Atlantic ProvincesScott Pass, Passenger Contracted Transportation Services Ltd. Regional Chair, British ColumbiaAlex Milojevic, Brampton Transit Regional Chair, OntarioChantale Dugas, Réseau de transport de la Capitale Regional Chair, Québec

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STAFF 2018

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NAME POSITION

Jason Allen Director, Learning & NetworkingKevin Brown Manager, Business Development Paulina Cadena Lead, National Conferences and Event Calvin Chia Data AnalystMarco D’Angelo President & CEOChristine Harminc Manager, CommunicationsJodie Hunt Manager, Communications Sarah Ingram Coordinator, Learning & Networking Keith Jarvis Coordinator, Graphic Design & Digital MediaChad Jeudy-Hugo Director, Public Affairs & Strategic CommunicationsRichard Kong Coordinator, FinanceSamuel Lafontaine Associate, Public AffairsJason Leclair Manager, Information TechnologyMcCartney Lee Coordinator, Communications & GrantsJeff Mackey Coordinator, Public PolicyPeter Luo Coordinator, Research and Statistics (independent contract)

Seth McDermott Coordinator, Research and Statistics (independent contract)

Milly Mikkelsen Manager, Human Resources Angela Murray Director, Finance and OperationsOliver Nicholls Junior Coordinator, Research & StatisticsJohanne Palermo Content Strategist, PublicationsWendy Reuter Vice President, Member ValueInès Sartini Bilingual Administrative Coordinator Winnie Tong-Luo Coordinator, Member Services Joanne Vézina Executive Assistant

independent A U D I T O R S ’ R E P O R TTO THE MEMBERS OF THE CANADIAN URBAN TRANSIT ASSOCIATION

OPINION

We have audited the financial statements of Canadian Urban Transit Association, which comprise the statement of financial position as at December 31, 2018, and the statements of operations, changes in net assets and cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Canadian Urban Transit Association as at December 31, 2018, and the results of its operations and its cash flows for the year then ended, in accordance with Canadian accounting standards for not-for-profit organizations.

BASIS FOR OPINION

We conducted our audit in accordance with Canadian generally accepted auditing standards. 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 independent of Canadian Urban Transit Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, matters related to going-concern and using the going concern basis of accounting unless management either intends to liquidate the Association or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Association's financial reporting process.

STAFF 2018 FINANCIALS

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AUDITOR'S 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. 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.

• 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 Association's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going-concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Association's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

KRIENS~LAROSE, LLP Chartered Accountants Licensed Public Accountants

Toronto, Ontario March 21, 2019

FINANCIALS

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2018 2017 $ $

ASSETS

CURRENT

Cash $ 1,383,276 $ 1,451,641Investments – restricted (Note 2) 81,305 81,150Investments (Note 2) - 540,000Accounts receivable 260,623 217,158Government remittances receivable 62,090 56,273Inventory 24,104 30,867Prepaid expenses 157,619 91,641

1,969,017 2,468,731

EQUIPMENT (Note 3) 27,631 15,168

$ 1,996,648 $ 2,483,899

LIABILITIES

CURRENT

Accounts payable and accrued liabilities 548,070 978,677Regional Youth Summits surplus held in trust (Note 4) 44,030 44,030Business members' assessment fund 47,746 23,839Advocacy fund (Note 5) 196,535 196,535Deferred revenue (Note 6) 90,075 184,097

$ 926,456 $ 1,427,178

NET ASSETS (Note 7)

Unrestricted Net Assets 864,470 960,726Project Fund 202,618 92,891Québec Advocacy Fund 3,104 3,104

1,070,192 1,056,721

$ 1,996,648 $ 2,483,899

C A N A D I A N U R B A N T R A N S I T A S S O C I A T I O N

statement of F I N A N C I A L P O S I T I O Nfor the year ended December 31 , 2018

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2018 2017 $ $

REVENUES

Membership fees $ 1,623,294 $ 1,326,869Advertising 134,342 150,885Fee for service 59,541 58,374Publication and other 34,785 50,929Investment income (Note 2) 16,980 17,540

1,868,942 1,604,597

PROGRAM REVENUES

Meetings $ 1,145,165 $ 924,230Advocacy (Note 5) 483,085 512,981Training/Ambassador 286,747 318,110STRADA 180,164 152,507

2,095,161 1,907,828

TOTAL REVENUES $ 3,964,103 $ 3,512,425

PROGRAM EXPENSES

Meetings $ 749,115 $ 739,512Advocacy (Note 5) 302,956 512,981Training/Ambassador 232,153 305,808STRADA 151,489 107,701Project funds 50,209 7,109

1,485,922 1,673,111

GENERAL OPERATING EXPENSES 2,464,710 1,847,884

TOTAL EXPENSES $ 3,950,632 $ 3,520,995

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES FOR THE YEAR 13,471 (8,570)


combined statement of O P E R AT I O N Sfor the year ended December 31 , 2018

2018 2017 $ $

REVENUES

Membership fees $ 1,623,294 $ 1,326,869Advertising 134,342 150,885Fee for service 59,541 58,374Publication and other 34,785 50,929Investment income (Note 2) 16,980 17,540

1,868,942 1,604,597

PROGRAM REVENUES

Meetings $ 1,145,165 $ 924,230Advocacy (Note 5) 483,085 512,981Training/Ambassador 286,747 318,110STRADA 180,164 152,507

2,095,161 1,907,828

TOTAL REVENUES $ 3,964,103 $ 3,512,425

PROGRAM EXPENSES

Meetings $ 749,115 $ 739,512Advocacy (Note 5) 302,956 512,981Training/Ambassador 232,153 305,808STRADA 151,489 107,701

1,435,713 1,666,002

GENERAL OPERATING EXPENSES 2,464,710 1,847,884

TOTAL EXPENSES $ 3,900,423 $ 3,513,886

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES FOR THE YEAR 63,680 (1,461)

PROJECT STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2018

REVENUES - -

PROGRAM EXPENSES

Projects $ 50,209 $ 7,109

EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES FOR THE YEAR (50,209) (7,109)


operations statement of O P E R AT I O N Sfor the year ended December 31 , 2018

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2018 2017 $ $

GENERAL OPERATING EXPENSES

Salaries and benefits (Note 9) $ 1,643,633 $ 1,266,375Professional fees 231,006 141,621Occupancy costs – Toronto 203,621 178,502Travel 80,679 68,349Committee meetings 77,156 53,629Office and general 73,858 104,745Occupancy costs – Ottawa 60,552 64,120Branding and marketing 26,876 10,334Telephone 24,847 21,642Professional development 17,612 20,683Postage 10,999 15,364Amortization 9,472 24,047Printing 3,619 1,915Media relations 780 709

$ 2,464,710 $ 1,972,035

Less: Overhead allocated to programs - (124,151)

$ 2,464,710 $ 1,847,884


schedule to S TAT E M E N T O F O P E R AT I O N Sfor the year ended December 31 , 2018


statement of C H A N G E S I N N E T A S S E T Sas at year ended December 31 , 2018

Unrestricted Net Project Québec Advocacy 2018 2017 Assets Fund Funds Total Total

$ $ $ $ $

Balance, beginning of year 960,726 92,891 3,104 1,056,721 1,065,291Excess (deficiency) of revenues over expenses for the year 63,680 (50,209) - 13,471 (8,570)Interfund transfers (159,936) 159,936 - - -

Balance, end of year 864,470 202,618 3,104 1,070,192 1,056,721

2018 2017 $ $

CASH WAS PROVIDED BY (USED IN):

OPERATING ACTIVITIES

Excess (deficiency) of revenues over expenses for the year $ 13,471 $ (8,570)Charges to income not involving cash: Amortization 9,472 24,047Unrealized gain on investments - (587)Loss on disposal of equipment 588 -

23,531 14,890

CHANGES IN NONCASH WORKING CAPITAL BALANCES

Accounts receivable $ (43,465) $ (26,142)Government remittances receivable (5,817) (15,390)Inventory 6,763 54,731Prepaid expenses (65,978) (54,090)Accounts payable and accrued liabilities (430,606) 262,766Business members' assessment fund 23,907 7,662Advocacy fund - (27,540)Deferred revenue (90,722) 71,125

$ (605,918) $ 273,122

INVESTING ACTIVITIES

Sale of investments $ 539,845 $ 532,174Purchase of equipment (25,823) (13,884)Loan receivable - 35,631

514,022 553,921

Change in cash and equivalents (68,365) 841,933

Cash and equivalents, beginning of year 1,451,641 609,708

Cash and equivalents, end of year 1,383,276 1,451,641


statement of C A S H F L O W Sfor the year ended December 31 , 2018

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PURPOSE OF THE ORGANIZATION

The Canadian Urban Transit Association ("CUTA") is a not-for-profit trade association incorporated without share capital under the Canada Not-for-Profit Corporations Act ("NFP Act"). CUTA is exempt from income taxes under section 149(1)(l) of the Income Tax Act (Canada).

VISION

To inspire and influence the evolution of integrated urban mobility.

MISSION STATEMENT

• CUTA is the collective and influential voice of public transportation in Canada, dedicated to being the centre of urban mobility issues with all levels of government, and delivering the highest value to its members and the communities they serve.

• CUTA will be the go-to organization for information, trends, networking, and training, providing leadership for its members and all stakeholders.

• To operate effectively, CUTA will foster a culture of active engagement with its members.

• CUTA will deliver a high performance working environment. Its team will be consummate experts and professionals.

• Success will be measured by an action-oriented focus, achievements, and contributions to member success.

1. SIGNIFICANT ACCOUNTING POLICIES

The financial statements were prepared in accordance with Canadian accounting standards for not-for-profit organizations in Part III of the CPA Handbook and include the following significant accounting policies:

FINANCIAL INSTRUMENTS

The Association initially measures its financial assets and liabilities at fair value. The Association subsequently measures all its financial assets and financial liabilities at amortized cost. Changes in fair value are recognized in the statement of operations.

Financial assets measured at amortized cost include cash and accounts receivable

Financial liabilities measured at amortized cost include accounts payable and accrued liabilities.


notes to the F I N A N C I A L S TAT E M E N T Sfor the year ended December 31 , 2018

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1. SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

CASH AND EQUIVALENTS

Cash and cash equivalents consist of cash on hand and fixed income investments with cashable terms with less than one year.

INVENTORY

Inventory is measured at the lower of cost and net realizable value, with cost being determined on an average basis. Write-down of inventory to net realizable value is recognized as an expense in the period the write-down occurs. Reversal of write-down is recognized as a reduction in expense in the period in which the reversal occurs.

PREPAID EXPENSES

Prepaid expenses are recorded for goods and services to be received in the next fiscal year which were paid for in the current fiscal year.

EQUIPMENT AND AMORTIZATION

Equipment is stated at acquisition cost. Amortization is provided over the estimated useful life of the asset as follows:

Computer equipment – 3 year straight line basis Leasehold improvements – over the term of the lease

Where equipment no longer has any long-term service potential to the Association, the excess of their net carrying amount over any residual value is recognized as an expense in the statement of operations.

REVENUE RECOGNITION

The Association follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Unrestricted contributions are recognized as revenue when received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. Unrealized gains and losses on financial assets are included in net income in the period in which they arise.

MEMBERSHIP FEES

Annual membership fees are recognized as revenue when invoiced except for membership fees received in advance of the year of membership. These are deferred to the following year. Membership fees are not prorated; membership benefits for new members joining after July 1 are extended to the end of the following year.

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1. SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

PROGRAM REVENUES

Program revenues are recognized when services are provided and program-specific expenses are incurred.

ADVERTISING REVENUES

Advertising revenues are recognized in the year the advertisement relates to.

INTEREST AND MISCELLANEOUS INCOME

Interest and miscellaneous income is recognized as revenue when received.

DONATED PROPERTY AND SERVICES

During the year, voluntary services were provided. Because these services are not normally purchased by the Association and because of the difficulty of determining their fair value, donated services are not recognized in these statements.

USE OF ESTIMATES

The preparation of financial statements in accordance with Canadian accounting standards for not-for-profit organizations requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the reporting date and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from these estimates. Significant financial statement items that require the use of estimates are useful lives of property and equipment, rates of amortization and accrued liabilities. These estimates are reviewed periodically and adjustments are made, as appropriate, in the statement of operations in the year they become known.

ALLOCATION OF EXPENSES

The Association engages in training, conference, and advocacy programs. The costs of each program include the expenses that are directly related to providing the program. The Association also incurs general operating expenses that are common to the Association and each of its programs.

The Association allocates certain of its general administrative expenses to each program on the following basis:

Salaries – on staff time spent on the programs.

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2. INVESTMENTS

INVESTMENTS ARE SUMMARIZED AS FOLLOWS:

2018 2017 $ $

CIBC Flexible GIC, .6% maturing June 14, 2019 $ 70,886 $ -CIBC Flexible GIC, .6% maturing March 19, 2019 10,419 -Ontario Savings Bond, 2.25%, maturing June 21, 2018 - 540,000CIBC Flexible GIC, 0.45%, maturing June 14, 2018 - 70,742CIBC Flexible GIC, 0.5%, maturing March 17, 2018 - 10,408

$ 81,305 $ 621,150

Current $ - $ 540,000Restricted 81,305 81,150

$ 81,305 $ 621,150

INVESTMENT INCOME IS COMPRISED AS FOLLOWS:

2018 2017 $ $

Interest income $ 16,980 $ 16,953Unrealized gains (losses) - 587

$ 16,980 $ 17,540

The two CIBC Flexible GICs of $70,886 and $10,419 (2017 total: $81,150) are held as a security for the OMERS pension fund.

The Association's investment policy states that investments are limited to instruments backed by either the federal or provincial governments or the Canadian Deposit Investment Corporation. The term of the investments should not exceed 36 months and a minimum 25% of the invested funds are to be accessible within three months.

3. EQUIPMENT

2018 2017

Cost Accumulated Cost Accumulated amortization amortization $ $ $ $

Computer equipment 357,137 346,871 348,680 334,687Office furniture and equipment - - 106,450 105,275Leasehold improvements 17,365 - 27,495 27,495

374,502 346,871 482,625 467,457

Net book value 27,631 15,168

The Association began renovation of their office space on December 15, 2018. As a result, the previous leasehold improvements have been written off and office furniture and equipment have been disposed of. The Association incurred a loss on disposal of office furniture and equipment of $588.

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4. REGIONAL YOUTH SUMMITS

The Youth Summit Fund was approved by the Board of Directors in 2011 for funds received for the purpose of holding youth summits. Instead of a national youth summit, as was organized by CUTA in the past, five regional events took place in 2012, which were organized by volunteers from the selected transit system host from each regional committee.

Each regional host was fully responsible for the use of funds they received, including any financial deficit. Any financial surplus resulting from regional youth summits were transferred to CUTA's bank account, to be held “in trust” for the next regional youth summit for that region. This amount is to be released, upon approval by the Board, in the following years. If the summits do not continue, the CUTA Board of Directors will decide how any surplus funds held in trust will be used.

There were no Regional Youth Summits held in 2018 or 2017.

5. ADVOCACY FUND

During the 2006 fiscal year, the Board of Directors approved the establishment of an advocacy fund as a result of transferring the VIP program to CUTA's ongoing advocacy activities.

The fund holds the proceeds from annual membership fee supplements collected from all transit system and business members and is internally restricted for Advocacy activities only. The annual budget is prepared by the Communications & Public Affairs Committee with approval by the Executive Committee. Input from the Québec Regional Committee is used to determine the recommendations with regards to the French-language component.

6. DEFERRED REVENUE

Deferred revenue includes the funding received or receivable, less the costs incurred to date for programs which were not complete as at December 31, 2018 as well as membership fees, training and registration fees and other revenue received in advance

Deferred revenue is composed of the following: 2018 2017 $ $

Membership fees $ 20,912 $ 100,660Training/Ambassador 42,388 53,362Leasehold inducement 21,175 24,475Special activities 5,600 5,600

$ 90,075 $ 184,097

7. NET ASSETS

UNRESTRICTED NET ASSETS

The Association has a financial policy in place so that, in the event of a winding down of the Association, there should be sufficient net assets available to satisfy its liabilities to both outside organizations and staff personnel.

QUÉBEC ADVOCACY FUND

This fund was initiated from the net proceeds of a Québec workshop for elected officials held in 2000. Disbursement of the fund is under the jurisdiction of the Québec Regional Committee and intended for use in Québec advocacy initiatives.

PROJECT FUND

In 2018 the Executive Committee approved the transfer of $159,936 from the unrestricted net assets to the Project Fund.The purpose of this fund is for investment in onetime projects with one or more of the following criteria:

- Adds benefit to the membership- Enables the creation of revenue for CUTA- Should not cause an ongoing operational expense- Improves productivity of staff

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8. COMMITMENTS

PREMISES LEASE

The Association is committed to a minimum amount of rentals under a long-term lease for its Toronto premises, which expires May 31, 2025. Minimum rental commitments under this lease approximate $592,533 of which $83,260 is due within one year.

Successive commitments per year are as follows:

$

2019 83,2602020 88,1162021 91,5862022 91,5862023 96,4432024 99,9122025 41,630

Total 592,533

The Association is also responsible for its share of operating costs and realty taxes which are estimated at $96,000 annually.

The Association is undergoing office renovations, which are expected to be completed by April 1, 2019. The total estimated cost remaining is $366,000.

The Association is committed to a minimum amount of rentals under a long-term lease for its Ottawa premises, which expires June 30, 2021. Minimum rental commitments under this lease is $138,000 of which $55,200 is due within one year.

Commitments per year are as follows:

$

2019 55,2002020 55,2002021 27,600

Total 138,000

9. EXPENSE ALLOCATION

The Association allocates certain of its general administrative expenses to various programs. Salaries of $345,306 have been allocated to the advocacy program ($100,840), STRADA ($63,030), training ($63,030) and conferences ($118,406).

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10. ONE-TIME COSTS

The Association incurred one-time costs of $17,931 related to a temporary office, as well as rental of office furniture while undergoing renovations at their office location.

11. FINANCIAL INSTRUMENTS

The Association is exposed to various risks through its financial instruments. The following presents the Association’s risk exposures and concentrations at December 31, 2018.

CREDIT RISK

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Association's credit risk would occur with their accounts receivable. Actual exposure to credit losses has been minimal in prior years. The allowance for doubtful accounts is $0 (2017: $0).

LIQUIDITY RISK

Liquidity risk is the risk that the Association will encounter difficulties in meeting obligations associated with financial liabilities. The Association's exposure to liquidity risk is mainly in respect of its accounts payables. The Association expects to meet these obligations as they come due by generating sufficient cash flow from operations. There has been no change in the risk assessment from the prior period.

MARKET RISK

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: currency risk, interest rate risk and other price risk.

CURRENCY RISK

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Association is not exposed to foreign currency risk.

INTEREST RATE RISK

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Association has a low interest rate risk.

OTHER PRICE RISK

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Association is not exposed to other price risk.

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cutaactu.ca

[email protected]

CUTA-ACTU

@canadiantransit

canadian-urban-transit-association/

canadiantransit

Head Office

55 York Street, Suite 1401

Toronto, Ontario M5J 1R7

416.365.9800

Ottawa Office

440 Laurier Avenue West, Suite 200

Ottawa, Ontario K1R 7X6

613.690.5139

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