More than two years down after being embroiled in financial havoc, Island Transit has earned clean financial and accountability audits from the state auditor.
In fact, auditors were glowing in their praise of the agency’s turnaround, according to Rick Almberg, Oak Harbor councilman and chairman of the Island Transit board.
“The transit district has really made strides toward protecting the public’s financial investment in the district,” he said.
Island Transit Director Mike Nortier and the transit board discussed the audit reports during a meeting last week.
The audit covers the period between Jan. 1, 2015 through Dec. 31, 2015.
The audit looked at certain operations from the beginning of 2015 and into 2016, Nortier explained.
The turnaround, which started before he was hired, was the result of hard work by Financial Analyst Paul Arand and many others, Nortier said.
“A lot of people put a lot of effort into it.
“We’re working hard to overcome negative perceptions,” Nortier said
The transit agency has a history of audit findings and management letters. Auditors issued a series of findings in reports released in 2014, which came after major financial problems were brought to light in the district.
The district laid off employees, cut services and borrowed more than $2 million.
The transit district is still paying off the bond, but the audit shows that the district’s cash position is strong, Nortier said.
The agency’s cash jumped 160 percent, or $1.5 million, from 2014 to 2015.As of December 2016, the district had $6.4 million in total reserves.
Nortier pointed out that outside factors helped the district in 2016. Sales tax was higher than anticipated and fuel prices lower than budgeted.
Transit officials aren’t itching to spend the money right away and aren’t finished making changes for the better, Nortier said.
The agency is in the midst of a comprehensive study to determine how routes can be modified to make them more efficient, he said.
The agency is also continuing to look at adding fares system-wide and bringing back Saturday service.
Island Transit will hold public meetings and gather input before any decisions are made later this year, Nortier said.
