Fare Collection 101 Financial Controls/Reporting. Lynn Brumfield Lumenor Consulting Group, Director, Business Development Roswell, GA

Transcription

1 Fare Collection 101 Financial Controls/Reporting Lynn Brumfield Lumenor Consulting Group, Director, Business Development Roswell, GA

2 Show me the MONEY!! And the tickets and the phones and the smart cards and the PIV cards..

3 Agenda (from Simple to Sophisticated) Cash Systems and Reconciliation Back office types and terminology Back office functions Reporting System Integration

4 Vending Machine Cash Systems Components - Bulk coin hoppers - Coin acceptor/recirculating coin tubes - Coin cashbox - Bill Acceptor - Bill cashbox Key control is critical - Maintenance has no access to cash - Revenue Staff can remove containers but not access contents - Counting room staff can remove contents System monitors access and records activities.

5 Reconciliation process Said to contain Bills and coins Fare System Said to contain Bills and coins Cash Collection - Counting room - 3 rd party Said to Contain Bills and coins Reconciliation

6 Typical Reconciliation Report Data as of: 24-Jul-07 07:58:54 Page 1 of 3 <Transit Authority Name> <Host Name>:<instance> Cashbox Reconciliation by Cashbox R070 / / 39 Cashbox Audit Operator: Operator 1 Selected Start and End Dates and Times: 21-Jul-07 00:00:00 to 23-Jul-07 00:00:00 Selected Operators: Selected Facilities: Selected Cashbox Types: Serial Percentage Type Number Facility Device ID Transaction Date and Time Employee ID Amount $ Difference $ Difference Bill Cashbox 9053 Union Station TVM05002 Removal 21-Jul-06 11:35: , Counted 21-Jul-06 11:58: , % st Ave Station TVM01001 Removal 21-Jul-06 09:55: Counted 21-Jul-06 10:12: % Coin Cashbox 1782 Union Station TVM05002 Removal 21-Jul-06 11:36: , Counted 21-Jul-06 11:49: , % st Ave Station TVM01001 Removal 21-Jul-06 10:15: Counted 21-Jul-06 10:32: % Coin Hopper 3029 Union Station TVM05002 Removal 21-Jul-06 11:37: Counted 21-Jul-06 12:06: % st Ave Station TVM01001 Removal 22-Jul-06 10:33: , Counted 22-Jul-06 10:55: , % Operator 1 Subtotal of Differences 5.30

7 Typical TVM Cash Balance Report Data as of: 24-Jul-07 07:58:54 Page 1 of 1 Selected Start and End Dates: 21-Jul-07 to 23-Jul-07 Selected Operators: Selected Facilities: Selected TVMs: <Transit Authority Name> <Host Name>:<instance> TVM Cash Balance Report R090 / / 42 Operator: Operator 1; Facility: 1 st Avenue Station, TVM: TVM01001 MONEY CONTAINER CONTENTS Date and Time Transaction Coin Hoppers $ Coin Tubes $ Coin Cashbox $ Total Coins $ Bill Cashbox $ Totals $ 21-Jul-06 8:22:05 Beginning of Day Agency Personnel Actions Total Cashbox Removals Sales Cash Deposited Sales Cash Dispensed Calculated Totals Jul-06 8:22:05 End of Day Variance CASHBOX RECONCILIATION Cashbox Type Said to Contain $ Counted Value $ Difference $ Bill Cashbox Coin Cashbox Coin Hopper Removal

8 It s not only about cash. Proof of Payment Smart Card Magnetic Card Card based Closed loop Open loop Bank card Open payment Account based Oh my

9 Card based architecture (use devices) Garage Computer AFC Network Fare Collection Backoffice Wi Fi Network AFC Network IR interface Magnetic ticket Mobile Ticketing - NFC (MiFare) Smart Card

10 Card based architecture (sales devices) Fare Collection Backoffice AFC Network AFC Network Financial Payment Network Web site - Sales Cellular Network AFC Network Cellular Network Mobile Ticketing - Sales Retail - Sales Ticket Office - Sales Magnetic ticket Smart Card

11 Account based architecture Transit Cards AFC Equip/ Infrastructure High Speed Networks Account Based Processor Financial Payment Network Mobile Carrier Networks Rail Equip/ Infrastructure Bank Cards Mobile Ticketing - NFC or bar code ID cards, Other Contactless media

12 Card Based vs. Account based System type Validation location Examples Card Based Account Based At device logic in all entry devices In Back office all logic in a back office - Business rules in Account Based Processor - Bank card processing by bank/acquirer - Breeze (Atlanta) - Easy Card (Miami/SFRTA) - Charlie Card (Boston) - All magnetic card systems - Traditional Credit/pre-paid cards -Farepay (UTA) -Sunrail (Orlando) - Ventra (Chicago) - Key (SEPTA)

13 Pros and Cons Card Based Pros Speed Security Cons Difficult to affect changes to the devices Proprietary formats Delays in autoloads to buses (1-3 days) Account Based Pros Cons Many types of tokens can be used Single point to make fare changes Limited data required on card 3 rd party sales networks are simpler Requires constant connectivity to back office Tag on tag off fares can be complex due to missing transactions Cost and complexity of on line connection from buses

14 Open Loop vs. Closed Loop System type Closed Loop Open Loop Card distribution/ control Issued by the owner of the card Can be issued by others Examples - Breeze (Atlanta) - Easy Card (Miami/SFRTA) - Charlie Card (Boston) - All magnetic card systems - Starbucks, Macy s, store brands - Ventra special fares - Major card brands Mastercard, VISA, Am Ex, etc. -Farepay (UTA) -Sunrail (Orlando) - Ventra (Chicago) - Key Card (SEPTA)

15 Pros and Cons Open Loop Pros Issuance and distribution can be done by others Cons Limited contactless card distribution currently Limited fare product choices Closed Loop Pros Broad range of fare product options You control the relationship with the customer Cons Card distribution is the responsibility of the issuer

16 Bank card/open payment - Issued by Banks/card brands - Open/closed loop and card/account based is clearer terminology

17 Backoffice Functions - System Configuration - Device settings - Fare rules - Interface to Banking systems - System Monitoring - Reporting - Other interfaces - General ledger - Other Systems CAD, scheduling, etc.

18 Revenue timing - Sale payment of a fare(s) - Use acceptance of a fare (day/weeks later) - Revenue collection - when cash or credit is counted/settled (days/weeks later) - Revenue Recognition business rule - Post pay fare counted, billed after the fact (organizations)

19 Report Type Summary Report type Examples Users Source System Management Ridership Revenue Media Sales Dashboards - Equipment Status - Configuration Status - Ridership by time - Ridership by station - Cashbox reconciliation - Stored Value Liability - Sales by location - Sales by type - Transaction history - KPI s - SLA s Operations Maintenance Planning Accounting Revenue Manager Accounting Marketing Customer Service Management Board Fare System Fare System APC Fare System External sales (if not integrated) Fare System External sales (if not integrated) Fare System and other sources

20 Ridership Report Example Data as of: 24-Jul-07 07:58:54 Page 1 of 1 <Transit Authority Name> <Host Name>:<instance> Ridership Totals by Category and Time of Day P100 / / 37 Selected Start and End Dates: 17-Jul-07 to 24-Jul-07 Selected Operators: Selected Facilities: Day Type Device Type Category Early AM AM Peak Midday PM Peak Evening Night Totals Weekday Bus Smartcard Disabled ,012 6,727 16,940 8, ,031 Validator Regular 1,358 70,364 12,726 83,888 10,654 5, ,555 Senior ,947 9,979 84,042 13,006 3, ,754 Bus Smartcard Validator Subtotals 2, ,323 29, ,870 31,801 9, ,340 Farebox Disabled ,870 4,620 18,760 3, ,087 Regular 1,379 66,927 12,474 68,404 10,185 4, ,206 Senior ,264 12,824 67,837 8,890 2, ,895 Farebox Subtotals 2, ,061 29, ,001 22,680 7, ,188 Rail Smartcard Disabled ,512 6,363 19,620 9, ,681 Validator Regular 1,652 82,894 11,746 85,218 13,916 4, ,200 Senior ,014 8,421 91,742 14,728 2, ,398 Rail Smartcard Validator Subtotals 3, ,420 26, ,580 38,276 8, ,279 Ticket Vending Disabled ,302 6,041 25,130 6, ,600 Machines Regular 1,295 71,134 10,297 75,894 12,180 3, ,797 Senior ,957 7,924 71,827 11,067 1, ,987 Ticket Vending Machines Subtotals 2, ,393 24, ,851 30,058 6, ,384 Weekday Subtotals 11, , , , ,815 31,206 1,291,752 Grand Totals 11, , , , ,815 31,206 1,291,752

21 Sales Report Example Data as of: 24-Jul-07 07:58:54 Page 1 of 1 Data based on: Transit Date Selected Start and End Dates: 01-Jul-07 to 07-Jul-07 Selected Operators: Operator 1 Selected Facilities: Selected Payment Types: Sales Totals by Facility and Payment Type Operator: Operator 1 <Transit Authority Name> <Host Name>:<instance> S113 / / 38 Facility - - Stored Value Pass Proof of Purchase Other* Bonus** Deposit**/Fees - - Payment Type Count Value $ Count Value $ Count Value $ Count Value $ Count Value $ Count Value $ 1 st Street Station Cash N/A N/A N/A N/A Debit N/A N/A N/A N/A Credit N/A N/A N/A N/A Check N/A N/A N/A N/A Stored Value N/A N/A N/A N/A 1 st Street Station Subtotals 520 2, , nd Street Station Cash N/A N/A N/A N/A Debit N/A N/A N/A N/A Credit N/A N/A N/A N/A Check N/A N/A N/A N/A Stored Value N/A N/A N/A N/A 2 nd Street Station Subtotals 520 2, , Operator 1 Subtotals , , , Grand Totals , , ,

22 Autoload Report Example Data as of: 24-Jul-07 07:58:54 Page 1 of 1 Selected Start and End Dates: 01-Jul-07 to 23-Jul-07 Selected Autoload Origins: Selected Autoload Origins: <Transit Authority Name> <Host Name>:<instance> Directed Autoload Delivery Summary A200 / / 46 Operator: Operator 1 Were Pending Before Added Delivered Expired Were Pending Before Autoload Origin Selected Start Date This Period This Period This Period Selected End Date Product Count Value $ Count Value $ Count Value $ Count Value $ Count Value $ Employee Input Pass Add CSC 31D $42 RF 0 N/A 100 N/A N/A 10 N/A Add CSC 31D $66 FF 0 N/A 50 N/A N/A 0 N/A Pass Totals 0 N/A 150 N/A N/A 10 N/A Stored Value Add CSC SV FF 0 N/A N/A Add CSC SV RF 0 N/A N/A Stored Value Totals 0 N/A N/A Web Ticketing Stored Value Add CSC SV FF 0 N/A N/A Add CSC SV RF 0 N/A N/A Stored Value Totals 0 N/A N/A Operator 1 Subtotals 0 N/A N/A Operator 1 Percent Delivered ( Delivered / Pending Prior + Added) ): 94.69% Totals 0 N/A N/A Percent Delivered 94.69%

23 ERP Integration Real Time Information Systems Scheduling Fare System Automated Passenger Counter Enterprise Resource Planning System - Asset Mgmt - Grants - Financials - Human Resources Payroll Benefits of integration Single source of data Reduced data entry Automated processes Reporting tools/ Business Intelligence

24 Business Intelligence/ Data Warehouse Data from many sources 3rd party tools Tableau OBIEE (Oracle) Many others Gathers silo-ed data for better business use

25 Conclusions - Money is only part of the answer - Systems are complex - Not just a Fare System anymore - Need to engage all stakeholders

26 Fare Collection 101 Financial Controls/Reporting Lynn Brumfield Lumenor Consulting Group