NSAA Annual Meeting June 6, 2008 NSAA EXCELLENCE IN ACCOUNTABILITY AWARDS Performance Audit of MASS TRANSIT AGENCIES OF NORTHEASTERN ILLINOIS: RTA, CTA, METRA, AND PACE

Challenges:  Four distinct, large entities  CTA: $ 1.2 billion – buses and rail  Metra: $ 504 million – commuter rail  Pace: $ 160 million – suburban buses  RTA: $ 708 million – much $ passed to 3 service boards, and responsible for overall governance 2

Challenges:  Largely open-ended scope  Technical areas, such as pensions, transit operations, construction, etc.  Under intense public scrutiny  200 miles away from Springfield Office 3

What we did:  Identified need for additional assistance – Used public accounting firms doing financial audits of the 4 agencies to assist in personnel and contract testing. Obtained additional assistance from contractors with expertise in bus and rail transit, pensions, and financial operations. 4

What we did:  Divided the agencies into 12 functional areas, such as financial management, revenue, capital program, pensions, and an operations chapter on each of the 4 entities  Looked at same issues across the agencies Really never had the issue arise that “you’re picking on me” or looking at me differently than the other 3 agencies. 5

What we did:  Benchmarking: Key objective was to measure their performance. Had to be careful when comparing the 4 agencies against each other – different population densities served, different transportation modes, etc. Decided to use other transit agencies in the U.S. for peer comparisons 6

What we did:  Benchmarking: Used National Transit Database data Kept changing – quite a challenge in referencing the report Put disclosures in the report about the data, as well as the selection and limitations of peer comparisons 7

Exhibit 3-14 CTA RAIL OPERATING COST PER PASSENGER MILE Source: National Transit Database Exhibit 4-10 METRA OPERATING COST PER PASSENGER MILE Source: National Transit Database Exhibit 5-20 PACE OPERATING COST PER PASSENGER MILE

Exhibit 6-28 PACE BUS PAY/BENEFITS AS A PERCENT OF TOTAL OPERATING COSTS Source: 2004 National Transit Database

What we did:  Made extensive use of Exhibits to make matters presented in the report more understandable and the report itself more visually appealing to users 10

Exhibit 7-4 CONTRIBUTION AMOUNTS AND FUNDED PERCENTAGE FOR THE RETIREMENT PLAN FOR CHICAGO TRANSIT AUTHORITY EMPLOYEES

Exhibit 8-8 CTA BASE FARE COMPARED TO INFLATION-INDEXED FARE Source: IMG from CTA fare information and CPI-U for the Chicago metropolitan area

CTA PEER COMPARISON – SUMMARY (RAIL) 2004 Service EfficiencyExhibit #Relative to Peers Operating cost per vehicle hour3-3Better than peers Employee work hours per vehicle hour3-5Better than peers Vehicle operations work hours per vehicle hour3-6Better than peers Vehicle maintenance work hours per 100 vehicle miles3-8Better than peers Vehicle maintenance expense per vehicle mile3-7Equal to peers Fringe benefit cost to labor cost3-4Worse than peers Service Effectiveness Average passenger load3-10Equal to peers Passengers per vehicle hour3-9Worse than peers Average speed3-11Worse than peers Cost Effectiveness Operating cost per passenger trip3-12Worse than peers Operating cost per passenger mile3-14Worse than peers Passenger Revenue Effectiveness Farebox recovery3-15Worse than peers Farebox recovery shortfall per passenger3-16Worse than peers 15

Impact:  Acceptance by agencies and actions taken on 47 recommendations All 4 agencies issued press releases the day the audit was released supporting the audit May 2008 RTA letter 18

Impact:  Very positively reported on by the press Many editorials Extensive TV coverage; Auditor General’s 2 nd press conference in 15 years 21

Impact:  Enactment of PA Addressed many of the overall issues raised in the audit: Strengthened the governing powers of the RTA Improved planning and service coordination 22

Impact:  Addressed the CTA’s pension and retiree health issue by granting authority to issue POBs. Gives Auditor General new responsibilities in reviewing pension obligation bond sale, as well as determining whether contribution rates by both the CTA and employees are adequate 23

NSAA Annual Meeting June 6, 2008 NSAA EXCELLENCE IN ACCOUNTABILITY AWARDS Performance Audit of MASS TRANSIT AGENCIES OF NORTHEASTERN ILLINOIS: RTA, CTA, METRA, AND PACE