At its monthly board meeting, the Regional Transportation Commission of Southern Nevada (RTC) received findings from an independent audit on the administration of the Fuel Revenue Indexing (FRI) program. Dennis K. Meservy, CPA, who was retained by the RTC, shared results of the audit that show the RTC has been properly accounting for and managing FRI funding for projects throughout Clark County.
The audit was designed to comprehensively review and evaluate the RTC’s procedures that account for FRI revenue and expenses during fiscal years 2014, 2015, and 2016. It found the RTC’s internal controls and processes to be adequate and proper. The report was not a self-audit and not required by law, but was requested by the RTC as a means to ensure that its internal procedures for utilizing FRI funds and administering the program are effective and comprehensive.
“The audit shows that the RTC is managing the Fuel Revenue Indexing program in a fiscally responsible way,” said RTC Chairman Larry Brown. “It is efficiently using tax payer dollars to fund critically needed transportation infrastructure projects that benefit our entire community.”
In addition, Moody’s Investor Service again assigned its Aa2 rating to the RTC’s Sales and Excise Tax Revenue (Streets and Highway Projects) Refunding Bonds. The rating primarily reflects the fact that taxable sales and pledged revenues for the bonds is stable and projected to grow modestly. The RTC’s Highway Revenue Bonds Series 2015, funded by Fuel Revenue Indexing (FRI), was previously upgraded from A1 to Aa3.
Similarly, Standard and Poor’s maintained its ratings for both RTC bonds, with a AA rating for RTC’s Sales and Excise Tax Revenue (Streets and Highway Projects) Refunding Bonds and AA- for the Highway Revenue Bonds Series 2015, citing both as stable.
